Richmond Savings Bank, S.S.B.
Rockingham, North Carolina
Pro Forma Valuation Report
Valued as of August 8, 1996
Prepared by:
BAXTER FENTRISS AND COMPANY
TABLE OF CONTENTS
Tab Page
- --- ----
INTRODUCTION 1
1 I. RICHMOND SAVINGS BANK, S.S.B.
General Overview 3
Financial Condition Overview 5
Asset Quality 13
Asset/Liability Management and Net Interest Spreads 15
Income and Expense Trends 18
Primary Market Area 23
Summary 27
2 II. COMPARISONS WITH PUBLICLY TRADED THRIFTS
General 28
Selection Criteria 28
Financial Comparisons 32
3 III. MARKET VALUE ADJUSTMENTS
Earnings Prospects 34
Market Area 35
Management 35
Liquidity 35
Dividends 36
Subscription Interest 36
Recent Regulatory Changes 36
Stock Market Conditions 37
Recent Acquisitions in the Savings Bank's Market Area 39
New Issue Discount 40
Adjustments Conclusion 41
Valuation Approach 41
Valuation Conclusion 41
LIST OF TABLES
Table
Number Table Title Page
- ------ ----------- ----
CHAPTER I
1 Selected Financial Data 6
2 Statement of Financial Condition 6
3 Loan Portfolio Composition 7
4 Loan Originations 8
5 Investment Securities Portfolio 9
6 Deposit Account Distribution 10
7 Historical and Pro Forma Capital Compliance 12
8 Nonperforming Assets 13
9 Allowance For Loan Losses 14
10 Net Portfolio Equity Value 15
11 Weighted Average Yields and Costs 16
12 Selected Operating Data 18
13 Key Operating Ratios 19
13-A Net Income for Trailing Twelve Months 20
14 Selected Operating Data-Percentage of Average Assets 20
15 Summary Demographic Data 24
16-A Deposit Market-Richmond County 25
16-B Deposit Market-Moore County 26
16-C Deposit Market-Scotland County 26
CHAPTER II Tab
---
17 General Characteristics 2
18 Key Financial Indicators 2
CHAPTER III Page
----
19 SNL Thrift Index Monthly Performance 38
Tab
---
20 Acquisitions of North Carolina Thrift Institutions 3
21 Standard Conversions Publicly Traded 3
22 Trading Comparisons 3
LIST OF EXHIBITS
Exhibit
Number Exhibit Title Tab
- ------ ------------- ---
I-1 Profile of Baxter Fentriss and Company 4
II-1 Balance Sheet 5
II-2 Consolidated Statements of Income 5
II-3 Loans Portfolio 5
II-4 Office Facilities 5
II-5 Directors and Executive Officers 5
III-1 Profitability Analysis 6
III-2 Income and Expense Analysis 6
III-3 Yield-Cost Structure 6
III-4 Risk Measures 6
III-5 Capital Structure 6
III-6 Financial Condition 6
III-7 Growth Rates 6
III-8 Loan Portfolio Distribution 6
III-9 Public Institutions Considered for Comparative Group 6
IV-1 Selected Market Data-All Public Thrifts 7
IV-2 Comparative Market Indices 7
IV-3 Selected Comparative Rates 7
V-1 Calculation of Return on Conversion Proceeds 8
V-2 Pro Forma Effect of Conversion Proceeds 8
V-3 Pro Forma Midpoint Analysis 8
INTRODUCTION
Set forth herein is the independent appraisal, prepared by Baxter Fentriss and
Company ("Baxter Fentriss"), of the estimated pro forma fair market value of
common stock (the "Common Stock") to be issued by Carolina Fincorp, Inc.
("Carolina Fincorp" or the "Holding Company") in connection with the Plan of
Conversion ("Conversion") of Richmond Savings Bank, S.S.B. ("Richmond Savings"
or the "Savings Bank") from a state chartered mutual savings bank to a state
chartered stock savings bank, and the offer and sale of shares of common stock
by the Savings Bank (transactions collectively referred to as the "Conversion"
and the sale of common stock as the "Offering").
Pursuant to the Plan of Conversion, (I) Richmond Savings will convert from a
North Carolina-chartered savings bank organized in mutual form to a North
Carolina savings bank organized in stock form, (II) Richmond Savings will sell
its capital stock to Carolina Fincorp, Inc., a North Carolina corporation and
become a wholly-owned subsidiary of the Holding Company, and (III) the Holding
Company will offer and sell shares of its common stock in a subscription
offering and, if necessary, in a community offering.
In the course of preparing this report, we reviewed and discussed with Richmond
Savings' management and independent accountants the audited financial statements
of the Savings Bank's operations for the fiscal years ended June 30, 1993, 1994,
1995, and 1996. We also reviewed and discussed with management other financial
matters of the Savings Bank.
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 Savings Bank's
primary market area and examined the prevailing economic conditions. We also
examined the competitive environment within which the Savings Bank operates and
assessed the Savings Bank's relative strengths and weaknesses.
We examined and compared Richmond Savings' performance with selected segments of
the thrift industry and selected publicly traded savings institutions. We
reviewed conditions in the securities markets in general and the market for
savings institution common stock in particular. We included in our analysis an
examination of the potential effects of the Conversion on the Savings Bank's
operating characteristics and financial performance as they relate to the
estimated pro forma market value of the Savings Bank.
In preparing our valuation, we have relied upon and assumed the accuracy and
completeness of financial and statistical information provided by Richmond
Savings and its independent accountants. We did not independently verify the
financial statements and other information provided by the Savings Bank and its
independent accountants, nor did we independently value the assets or
liabilities of the Savings Bank. The valuation considers the Savings Bank only
as a going concern and should not be considered as an indication of the
liquidation value of the Savings Bank.
1
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
Offering. 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 Offering will thereafter be able to sell such shares at
prices related to the foregoing valuation of the pro forma market value thereof.
Baxter Fentriss is not a seller of securities within the meaning of any federal
and state securities laws and any report prepared by Baxter Fentriss shall not
be used as an offer or solicitation with respect to the purchase or sale of any
securities.
The accompanying report is an integral part of our valuation and must be read in
its entirety to fully understand the basis for our opinion. The valuation
reported will be updated as appropriate. These updates will consider, among
other factors, any developments or changes in the Savings Bank's financial
condition and operating performance, management policies, and current conditions
in the securities markets for thrift institution common stock. Should any such
developments or changes be material, in our opinion, to the valuation of shares
offered in the conversion, 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.
2
I. Richmond Savings Bank, S.S.B.
General Overview
----------------
Richmond Savings Bank, S.S.B. ("Richmond Savings"), was organized in 1906 and is
headquartered in Rockingham, North Carolina. The Savings Bank operates from its
office located at 115 S. Lawrence Street in Rockingham. Richmond Savings'
deposits are insured by the SAIF of the FDIC and it is a member of the Federal
Home Loan Bank System. At June 30, 1996, Richmond Savings had total assets of
$94.1 million, total deposits of $83.7 million and total equity of $8.6 million
or 9.2% of period end assets.
Richmond Savings' business is attracting deposits from the general public and
investing those deposits primarily in first mortgages secured by one-to-four
family residences. Richmond Savings also makes a limited number of commercial
real estate loans and consumer loans in its market area. Richmond Savings is a
community-oriented savings institution offering a diverse selection of deposit
and loan products with a strong orientation toward customer service.
Substantially all of Richmond Savings' loan and deposit business is located in
Richmond, Moore, and Scotland Counties. Management does not anticipate any
dramatic change in the Savings Bank's operations after the Conversion.
Management of Richmond Savings implemented various strategies designed to
continue the Bank's profitability while maintaining the safety and soundness of
the institution. These strategies include: (1) emphasizing residential and
consumer lending; (2) maintaining asset quality; (3) controlling operating
expenses; and (4) monitoring interest rate risk.
Richmond Savings' capital increased from $4.8 million with an equity to assets
ratio of 5.8% at June 30, 1991 to $8.6 million and 9.2% at June 30, 1996 and was
in compliance with all applicable regulatory capital requirements. Richmond
Savings remained profitable in each of the last six fiscal years ended June 30,
1996. The return on average assets has ranged from a low of 0.78% in fiscal
1991, in which the provision for loan losses was expensed, to a high of 1.11% in
fiscal 1993. The return on average assets for the year ended June 30, 1996 was
.64% down from .81% at June 30, 1995, partially due to a decrease in net
interest income.
Management has sought to increase the asset size of the Savings Bank. Total
assets increased from $81.3 million at June 30, 1991 to $94.1 million at June
30, 1996, or 15.8%. The Savings Bank's growth in loans has not kept pace with
deposit expansion. Total deposits increased by 12.1% and net loans outstanding
grew by 12.0% between June 30, 1991 and June 30, 1996, respectively. In
contrast, investments including interest earning deposits, fed funds sold, FHLB
stock, and investment securities increased from $14.1 million to $21.8 million,
between June 30, 1991 and June 30, 1996.
3
Richmond Savings' diversified orientation is evidenced by the composition of its
loan portfolio. At June 30, 1996, 81.0% of the Bank's loan portfolio before net
items consisted of residential one-to-four family mortgages, 69.4% of the Bank's
net loan portfolio was composed of adjustable rate loans, and non-performing
assets were 0.06% of total assets.
The remainder of Chapter I discusses, in more detail, the overall trends
identified in this section. The discussion is supplemented by the tables and
exhibits throughout the chapters and at the back of the book. Exhibit II-1
summarizes Richmond Savings' statements of financial condition at June 30, 1993,
1994, 1995, and 1996. Exhibit II-2 summarizes the statements of income for the
fiscal years ended June 30, 1993, 1994, 1995, and 1996.
4
Financial Condition Overview
----------------------------
The following discusses asset and liability composition, loans, securities
investments, market area, and Richmond Savings' earnings outlook following the
Conversion.
Assets
- ------
Richmond Savings' asset base increased by 15.8% between June 30, 1991 and June
30, 1996. Table 1 shows selected consolidated balance sheet data and Table 2
shows selected balance sheet data as a percentage of period-end assets. The
Savings Bank's loan growth did not keep pace with its deposit growth. The
Savings Bank portfolios adjustable rate mortgages and sells fixed rate mortgage
loans in the secondary market as part of its lending strategy. In addition to
1-4 family permanent mortgage loans, the Bank has diversified its loan portfolio
by increasing its offering of consumer loan products. In the low interest rate
environment that existed during 1992 through early 1994, consumers generally
preferred fixed-rate mortgages, which worked to the bank's favor since it
offered both fixed and adjustable rate loans. The bank will emphasize the
origination and purchase of adjustable rate loans when market conditions permit
due to the fact that these are favorable to have in a rising interest rate
environment.
Loans
- -----
Richmond Savings' ratio of net loans to total assets was 75.1% at June 30, 1991
and increased slightly to 75.2% at June 30, 1996. Net loans outstanding
increased from $61.0 million at June 30, 1991 to $68.4 million at June 30, 1996
(or 12.1%). Table 3 shows the composition of the loan portfolio from June 30,
1994 to June 30, 1996. Table 4 shows Richmond Savings' loan origination
activity for the last three fiscal years. Richmond Savings is primarily a one-
to-four family residential lender with most all of its loans directly originated
in its market area.
The Savings Bank's permanent 1-4 family mortgage loans comprised 81.0% of net
loans receivable as of June 30, 1996, approximating levels in recent years.
Consumer lending has been the Bank's primary area of diversification, and
totaled 4.2% of net loans receivable at June 30, 1996, while construction and
home equity loans totaled 11.4% of net loans receivable. The Savings Bank has
minimized the risk associated with long term assets by focusing on assets with
shorter maturities and better interest rate spreads.
The loan programs and terms currently offered by the Savings Bank include
permanent fixed rate and adjustable rate 1-4 family loans have varying terms up
to 30 years and commercial real estate and multi-family loans offered by the
Savings Bank have terms up to 15 years. Loan to value ratios range from 65 to
95%. The bank also sells fixed rate mortgages in the secondary mortgage market.
5
Table 1
Selected Financial Data
At June 30, 1991, 1992, 1993, 1994, 1995, and 1996
(Dollars in Thousands)
- ---------------------------------------------------------------------------------------------
At June 30,
- ---------------------------------------------------------------------------------------------
Balance sheet data: 1991 1992 1993 1994 1995 1996
- ---------------------------------------------------------------------------------------------
Total loans, net $61,012 $63,004 $67,900 $67,680 $68,745 $68,358
- ---------------------------------------------------------------------------------------------
Total investments (2) 14,119 15,351 12,789 16,034 18,540 21,783
- ---------------------------------------------------------------------------------------------
Total assets 81,290 84,703 87,353 87,504 91,410 94,110
- ---------------------------------------------------------------------------------------------
Total deposits 74,660 77,431 79,005 78,315 81,437 83,715
- ---------------------------------------------------------------------------------------------
Total liabilities 76,537 79,099 80,793 80,090 83,282 85,469
- ---------------------------------------------------------------------------------------------
Retained income, 4,753 5,605 6,561 7,414 8,128 8,641
substantially restricted
- ---------------------------------------------------------------------------------------------
(1) Source: Richmond Savings Bank, S.S.B., Financial Statements.
(2) Includes interest bearing deposits, fed funds sold, FHLB stock and
investment securities.
Table 2
Statement of Financial Condition
At June 30, 1991, 1992, 1993, 1994, 1995, and 1996
(As a percentage of Total Assets)
- ---------------------------------------------------------------------------------------------
At June 30,
- ---------------------------------------------------------------------------------------------
Balance Sheet Data: 1991 1992 1993 1994 1995 1996
- ---------------------------------------------------------------------------------------------
Total loans, net 75% 75% 78% 77% 75% 73%
- ---------------------------------------------------------------------------------------------
Total investments (2) 18 18 15 18 20 23
- ---------------------------------------------------------------------------------------------
Total deposits 92 91 90 89 89 89
- ---------------------------------------------------------------------------------------------
Total liabilities 94 93 92 92 91 91
- ---------------------------------------------------------------------------------------------
Retained income, 6 7 8 8 9 9
substantially restricted
- ---------------------------------------------------------------------------------------------
(1) Source: Richmond Savings Bank, S.S.B., Financial Statements.
(2) Includes interest bearing deposits, fed funds sold, FHLB stock and
investment securities.
6
Table 3
Loan Portfolio Composition
At June 30, 1994, 1995, and 1996
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------------------
At June 30,
- --------------------------------------------------------------------------------------------------------------------
1994 1995 1996
- --------------------------------------------------------------------------------------------------------------------
Amount % of total Amount % of total Amount % of total
$ loans $ loans $ loans
receivable receivable receivable
- --------------------------------------------------------------------------------------------------------------------
Mortgage loans:
- --------------------------------------------------------------------------------------------------------------------
1-4 Family Residential $57,025 83% $57,980 83% $55,386 80%
- --------------------------------------------------------------------------------------------------------------------
Multi-family and Commercial 1,959 3 1,425 2 1,963 3
- --------------------------------------------------------------------------------------------------------------------
Construction 2,703 4 2,106 3 2,301 3
- --------------------------------------------------------------------------------------------------------------------
Home Equity Lines of Credit 3,949 6 4,666 6 5,465 8
- --------------------------------------------------------------------------------------------------------------------
Total Other Loans 3,129 4 4,040 6 4,513 6
- --------------------------------------------------------------------------------------------------------------------
Total loans receivable 68,765 100 70,217 100 69,628 100
- --------------------------------------------------------------------------------------------------------------------
Less:
- --------------------------------------------------------------------------------------------------------------------
Loans in process $ 769 $ 1,109 $ 881
- --------------------------------------------------------------------------------------------------------------------
Allowance for possible loan losses 316 363 389
- --------------------------------------------------------------------------------------------------------------------
Total loans, net $67,680 $68,745 $68,358
- --------------------------------------------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
7
Table 4
Loan Originations
For the Years Ended June 30, 1994, 1995, and 1996
(Dollars in Thousands)
- --------------------------------------------------------------------------------
Year Ended June 30,
- --------------------------------------------------------------------------------
1994 1995 1996
- --------------------------------------------------------------------------------
Total gross loans receivable at $66,385 $67,627 $68,813
beginning of period ------- ------- -------
- --------------------------------------------------------------------------------
Loan originated:
- ----------------
- --------------------------------------------------------------------------------
1-4 family residential 23,036 10,881 15,039
- --------------------------------------------------------------------------------
Commercial real estate 405 406 959
- --------------------------------------------------------------------------------
Consumer Loans 4,042 4,958 6,070
------- ------- -------
- --------------------------------------------------------------------------------
Total loan originations 27,483 16,245 22,068
- --------------------------------------------------------------------------------
Loans sold:
- -----------
- --------------------------------------------------------------------------------
1-4 family residential 7,560 647.00 4,826
------- ------- -------
- --------------------------------------------------------------------------------
Total loans sold 7,560 647.00 4,826
- --------------------------------------------------------------------------------
Other loan activity:
- --------------------
- --------------------------------------------------------------------------------
Loan principal repayments 18,681 14,412 27,455
------- ------- -------
- --------------------------------------------------------------------------------
Total gross loans receivable $67,627 $68,813 $68,252
at end of period ------- ------- -------
- --------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
8
Investment Securities
- ---------------------
As of June 30, 1996, the Savings Bank's investment securities portfolio
consisted primarily of U.S. Treasury and Government agency securities. Other
investments include mortgage-backed securities, corporate debt, municipal bonds,
and Federal Home Loan Bank Stock. The market value of the Savings Bank's
investment securities totaled $16.3 million at June 30, 1996. The total
investment portfolio amounted to $16.0 million, $18.5 million, and $21.8
million, at June 30, 1994, 1995, and 1996, respectively.
Table 5
Investment Securities Portfolio
At June 30, 1994, 1995, and 1996
(Dollars in Thousands)
- --------------------------------------------------------------------------------
At June 30,
- --------------------------------------------------------------------------------
1994 1995 1996
- --------------------------------------------------------------------------------
Market Value Market Value Market Value
- --------------------------------------------------------------------------------
Securities Available for Sale:
- --------------------------------------------------------------------------------
U.S. government and agency ----- $ 5,474 $ 8,387
- --------------------------------------------------------------------------------
Securities Held to Maturity:
- --------------------------------------------------------------------------------
U.S. government and agency 10,476 5,991 4,008
- --------------------------------------------------------------------------------
Mortgage-backed 1,287 1,070 1,817
- --------------------------------------------------------------------------------
Corporate debt 1,533 1,518 1,999
- --------------------------------------------------------------------------------
Municipal bonds 460 304 151
- --------------------------------------------------------------------------------
Other 50 --- ---
-- --- ---
- --------------------------------------------------------------------------------
Total investment securities $14,432 $14,357 $16,362
- --------------------------------------------------------------------------------
Interest-earning balances in other 867 3,448 4,686
banks
- --------------------------------------------------------------------------------
Federal Home Loan Bank Stock 735 735 735
--- --- ---
- --------------------------------------------------------------------------------
Total investments $16,034 $18,540 $21,783
- --------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
9
Liability Composition
- ---------------------
As of June 30, 1996, Richmond Savings' assets were funded primarily with
deposits, loan repayments, available funds from repayments from mortgage-backed
securities and retained earnings. In recent years, local retail deposits have
generally been sufficient to meet Richmond Savings' funding needs. Richmond
Savings attracts deposits from within its market area by offering a variety of
deposit products, including NOW, money market, regular savings and term
certificate accounts. The Savings Bank offers competitive rates and relies
substantially on customer service, convenience, advertising and long-standing
relationships with customers to attract and retain deposits. Management
periodically sets deposit rates and terms and service charges based on Richmond
Savings' funding needs, competitor offerings, and anticipated future economic
conditions and related interest rates. Deposits rose from $74.7 million at June
30, 1991 to $83.7 million at June 30, 1996.
The Savings Bank has sought to reduce its interest rate risk by encouraging
depositors to invest in longer term certificates of deposits and encouraging
long-term depositors to maintain their accounts with the Savings Bank. Total
demand deposits were $22.1 million or 26.4% of total deposits at June 30, 1996
and 73.6% of total deposits were certificate of deposit accounts. Table 6 shows
the distribution and the weighted average rate of Richmond Savings' deposits for
the years ended at June 30, 1994, 1995, and 1996. The majority of the Bank's
local customers have deposit balances of less than $100,000 and the Savings Bank
does not accept brokered CDs, so the Bank's local retail deposit base is
believed to be relatively stable.
Table 6
Richmond Savings Bank, S.S.B.
Deposit Account Distribution
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------------------------------
Category 6/30/94 Weighted 6/30/95 Weighted 6/30/96 Weighted
-------- ------- -------- ------- -------- ------- --------
Balance Average Balance Average Balance Average
------- ------- ------- ------- ------- -------
Interest Interest Interest
-------- -------- --------
($) Rate ($) Rate ($) Rate
---- ---- ----
(%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------------------
Passbook $15,080 2.80% $11,778 2.96% $11,368 2.95%
- --------------------------------------------------------------------------------------------------------------------------------
Now $ 5,473 2.30% $ 5,668 2.30% $ 5,663 2.31%
- --------------------------------------------------------------------------------------------------------------------------------
VIP Checking $ 2,389 2.60% $ 2,552 3.43% $ 3,120 3.44%
- --------------------------------------------------------------------------------------------------------------------------------
Non-Interest Bearing $ 1,770 0.00% $ 1,934 0.00% $ 1,954 0.00%
------- ---- ------- ---- ------- ----
- --------------------------------------------------------------------------------------------------------------------------------
Total Demand $24,712 2.47% $21,930 2.58% $22,105 2.59%
Deposits
- --------------------------------------------------------------------------------------------------------------------------------
Total Certificates $53,603 4.12% $59,507 5.57% $61,610 5.44%
------- ---- ------- ---- ------- ----
- --------------------------------------------------------------------------------------------------------------------------------
Total Deposits $78,315 3.60% $81,437 4.76% $83,715 4.69%
- --------------------------------------------------------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., financial statements
10
Net Worth
- ---------
At June 30, 1996, Richmond Savings net worth of $8.6 million or 9.2% of total
assets substantially exceeded all applicable regulatory capital requirements.
Table 7 presents Richmond Savings' regulatory capital position and the pro forma
estimated capital compliance ratios at June 30, 1996.
Assuming that 50% of the net proceeds are invested in the Savings Bank and
reducing the capital by the amount of the ESOP and the MRPs results in an
increase of Tier I leverage capital of $5.6 million at the pro forma midpoint.
The total Tier I leverage capital will equal $14.2 million, or 15.1% of assets,
which is $10.3 million in excess of the 4% requirement. In addition, the pro
forma capital substantially exceeds the total risk-based capital requirement by
$10.6 million and the North Carolina requirement by $9.6 million.
11
Table 7
Historical and Pro Forma Capital Compliance at June 30, 1996
(Dollars in Thousands)
- ---------------------------------------------------------------------------------------------------------------------------------
Historical - 6/30/96 $11,900(Minimum) $14,000(Midpoint) $16,100(Maximum) $18,515 (Adj. Maximum)
- ---------------------------------------------------------------------------------------------------------------------------------
Amount % Amount % Amount % Amount % Amount %
- ---------------------------------------------------------------------------------------------------------------------------------
Tier 1 Leverage $8,732 9.28% $13,383 13.55% $14,235 14.29% $15,087 15.02% $16,067 15.84%
- ---------------------------------------------------------------------------------------------------------------------------------
Tier 1 Requirement $3,764 4.00% $ 3,950 4.00% $ 3,984 4.00% $ 4,018 4.00% $4,057 4.00%
- ---------------------------------------------------------------------------------------------------------------------------------
Excess $4,968 5.28% $ 9,433 9.55% $10,251 10.29% $11,069 11.02% $12,009 11.84%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Tier 1 Adjusted $8,732 17.62% $13,383 26.43% $14,235 28.02% $15,087 29.59% $16,067 31.39%
- ---------------------------------------------------------------------------------------------------------------------------------
Tier 1 Requirement $1,982 4.00% $ 2,026 4.00% $ 2,032 4.00% $ 2,039 4.00% $2,047 4.00%
- ---------------------------------------------------------------------------------------------------------------------------------
Excess $6,750 13.62% $11,357 22.43% $12,203 24.02% $13,048 25.59% $14,019 27.39%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Total Risk-Based $9,121 18.41% $13,772 27.19% $14,624 28.78% $15,476 30.36% $16,456 32.16%
- ---------------------------------------------------------------------------------------------------------------------------------
Risk-Based $3,964 8.00% $ 4,051 8.00% $ 4,065 8.00% $ 4,078 8.00% $4,094 8.00%
Requirement
- ---------------------------------------------------------------------------------------------------------------------------------
Excess $5,157 10.41% $ 9,720 19.19% $10,559 20.78% $11,398 22.36% $12,363 24.16%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
NC Regulatory $9,121 9.69% $13,772 13.78% $14,624 14.51% $15,476 15.23% $16,456 16.04%
- ---------------------------------------------------------------------------------------------------------------------------------
NC Requirement $4,706 4.69% $ 4,939 5.00% $ 4,981 5.00% $ 5,024 5.00% $5,073 5.00%
- ---------------------------------------------------------------------------------------------------------------------------------
Excess $4,415 4.69% $ 8,834 8.78% $ 9,643 9.51% $10,452 10.23% $11,384 11.04%
=================================================================================================================================
Source: Richmond Savings Bank, S.S.B. Financial Statements, Pro Forma Business
Plan
12
Asset Quality
-------------
Richmond Savings regularly reviews its assets to determine if any assets require
classification or changes in a previous classification. At June 30, 1996,
Richmond Savings had total non-performing loans of $30,000 and real estate owned
of $29,000. Non-performing loans represented 0.03% of total assets and 0.35% of
equity. Table 8 shows Richmond Savings' non-performing assets for each of the
last three fiscal years ended June 30, 1996.
Richmond Savings considers both identified probable losses and losses that have
not been specifically identified but can be expected to occur in establishing
its reserve for loan losses. General and specific reserves are established by
the Board of Directors as necessary based on an assessment of risk in the
portfolio. Specific reserves are provided for individual assets, or portions of
assets, when ultimate collection is considered improbable by management based on
the current payment status and the fair or net realizable value of the security.
At June 30, 1996, loan loss allowance totaled $389,000.
Table 8
Non-performing Assets
At June 30, 1994, 1995, and 1996 (Dollars in Thousands)
===============================================================================================
Year Year Year
Ended Ended Ended
June 30, June 30, June 30,
1994 1995 1996
- -----------------------------------------------------------------------------------------------
Non-performing Loans:
- -----------------------------------------------------------------------------------------------
Loans accruing interest $ 112 $ 75 $ 27
- -----------------------------------------------------------------------------------------------
Accruing loans 90 days or more past due 0 0 3
- - -
- -----------------------------------------------------------------------------------------------
Total non-performing loans $ 112 $ 75 $ 30
- -----------------------------------------------------------------------------------------------
Real estate owned 0 0 29
- - --
- -----------------------------------------------------------------------------------------------
Total non-performing assets $ 112 $ 75 $ 59
- -----------------------------------------------------------------------------------------------
Ratio of non-performing loans to net loans 0.17% 0.11% 0.04%
- -----------------------------------------------------------------------------------------------
Ratio of non-performing loans to total assets 0.13% 0.08% 0.03%
- -----------------------------------------------------------------------------------------------
Ratio of non-performing assets to total assets 0.13% 0.08% 0.06%
===============================================================================================
Source: Richmond Savings Bank, S.S.B., Financial Statements
13
Table 9 shows the activity in the reserve for loan losses account for the same
periods. There have been insignificant amounts of charge-offs during the past
three fiscal years. The Savings Bank's allowance for loan losses was $389,000
at June 30, 1996, representing 1296.67% of non-performing loans and 0.57% of net
loans receivable.
Table 9
Allowance for Loan Losses
For the Years Ended June 30, 1994, 1995, and 1996
(Dollars in Thousands)
- -------------------------------------------------------------------------------------
Year Ended June 30,
- -------------------------------------------------------------------------------------
1994 1995 1996
- -------------------------------------------------------------------------------------------
Net loans Receivable (at end of period) $67,680 $68,745 $ 68,357
- -------------------------------------------------------------------------------------------
Allowance balances (at beginning of period) 307 316 363
- -------------------------------------------------------------------------------------------
Charge-offs 29 10 11
- -------------------------------------------------------------------------------------------
Recoveries 2 21 1
- -- -
- -------------------------------------------------------------------------------------------
Net loans charged off (recovered) $27 $-11 $10
- -------------------------------------------------------------------------------------------
Provision for loan losses 36 36 36
-- -- --
- -------------------------------------------------------------------------------------------
Allowance balance (at end of period) $316 $363 $ 389
- -------------------------------------------------------------------------------------------
Allowance for loan losses as a percentage of
net loans receivable at end of period 0.46% 0.53% 0.57%
- -------------------------------------------------------------------------------------------
Ratio of allowance for loan losses to total loans
delinquent 90 days or more at end of period 282.14% 484.00% 1296.67%
- -------------------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
14
Asset/Liability Management and Net Interest Spreads
---------------------------------------------------
The Savings Bank has an acceptable level of interest rate risk, compared to many
similar sized thrift institutions. The Savings Bank's strategies include: (1)
emphasizing the origination of adjustable rate, residential one-to-four family
real estate loans when market conditions permit; (2) emphasizing the origination
of adjustable rate home equity lines of credit; (3) emphasizing the solicitation
of checking and transaction accounts which are considered to be less interest-
rate sensitive deposits; and (4) attempting to lengthen deposit maturities.
Richmond Savings has maintained adequate levels of capital to minimize interest
rate risk. The extent of interest rate risk to which the Savings Bank is
subject is monitored by management through an analysis of the institution's
interest sensitivity gap (the difference between the amounts of interest-earning
assets and interest-bearing liabilities repricing during a given time), as well
as by other means.
Table 10 displays the Savings Bank's interest rate shock analysis as measured by
the sensitivity of the Savings Bank's net portfolio value to instantaneous
changes in interest rates. The analysis was calculated by the FHLB of Atlanta.
The analysis shows that a 200 basis point rate shock would result in a 21.8%
reduction in the net equity value of the Savings Bank's portfolio as of June 30,
1996. The pattern displayed shows the Savings Bank's balance sheet contains a
moderate level of interest rate risk with declining net interest income expected
in increasing interest-rate environments.
Table 10
Net Portfolio Equity Value
As of June 30, 1996
(Dollars in Thousands)
- -------------------------------------------------------------------------------
Market Value of Portfolio Equity
- -------------------------------------------------------------------------------
Change in Interest Rates in
Basis Points Market Value % Change % of Total
(Rate Shock) From Base Assets
- -------------------------------------------------------------------------------
Up 400 $ 5,882 -47.9% 6.3%
- -------------------------------------------------------------------------------
Up 200 $ 8,824 -21.8% 9.4%
- -------------------------------------------------------------------------------
Base $11,286 ------ 12.0%
- -------------------------------------------------------------------------------
Down 200 $13,182 16.8% 14.0%
- -------------------------------------------------------------------------------
Down 400 $15,195 34.6% 16.2%
- -------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
FHLB of Atlanta Interest Rate Risk Service Report
15
Richmond Savings' earnings are primarily the result of the positive spread
between the yield on its earning assets and the cost of its interest bearing
liabilities. This spread is subject to fluctuation, caused by changes in the
general level of interest rates in the economy as whole and in Richmond Savings'
market area. Table 11 shows Richmond Savings' average earning assets yields,
average interest-bearing liabilities costs, interest rate spreads and net
interest margin for the fiscal years ended June 30, 1994, 1995, and 1996.
Richmond Savings' interest rate spread fell from 3.48% during the fiscal year
ending June 30, 1994 to 3.24% in the fiscal year ending June 30, 1995, and then
dropped to 2.77% during the fiscal year ending June 30, 1996. Like many
financial institutions, the Savings Bank's interest rate spread probably peaked
early in 1994 as interest rates began an upward trend during the Spring of 1994.
At June 30, 1996, the Savings Bank's yield on interest bearing assets was 7.72%
and cost of funds was 4.94%, for a spread of 2.77%.
Table 11
Weighted Average Yields and Costs
For the Years Ended June 30, 1994, 1995, and 1996
- ---------------------------------------------------------------------------------------
For the Years Ended June 30,
- ---------------------------------------------------------------------------------------
1994 1995 1996
- ---------------------------------------------------------------------------------------
Assets Average Rate Average Rate Average Rate
- ---------------------------------------------------------------------------------------
Interest-earning assets:
------------------------
- ---------------------------------------------------------------------------------------
Loans receivable, net 7.79% 7.92% 8.19%
- ---------------------------------------------------------------------------------------
Investment and securities 5.52% 5.50% 6.08%
- ---------------------------------------------------------------------------------------
Interest-earning deposits 3.80% 7.10% 6.32%
---- ---- ----
- ---------------------------------------------------------------------------------------
Total interest-earning assets 7.28% 7.47% 7.72%
==== ==== ====
- ---------------------------------------------------------------------------------------
Liabilities and retained income:
- ---------------------------------------------------------------------------------------
Interest-bearing liabilities:
- ---------------------------------------------------------------------------------------
Deposits 3.80% 4.23% 4.94%
- ---------------------------------------------------------------------------------------
Total interest-bearing liabilities 3.80% 4.23% 4.94%
==== ==== ====
- ---------------------------------------------------------------------------------------
Net interest spread (1) 3.48% 3.24% 2.77%
- ---------------------------------------------------------------------------------------
Net yield on average interest-earning assets 3.79% 3.64% 3.26%
- ---------------------------------------------------------------------------------------
(1) Net interest spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
Source: Richmond Savings Bank, S.S.B., Financial Statements
-------
16
Income and Expense Trends
-------------------------
Operating Results
- -----------------
Tables 12, 13, and 14 display selected operating data and ratios and income
statement data, respectively, for the fiscal years-ended June 30, 1993, 1994,
1995, and 1996. Table 13-A displays the Savings Bank's net income for the
twelve months ending June 30, 1996. No adjustments have been made to net income
for any extraordinary items.
17
Table 12
Selected Operating Data
For the Years Ended June 30, 1993, 1994, 1995, and 1996
(Dollars in Thousands)
- -------------------------------------------------------------------------------
At June 30,
- -------------------------------------------------------------------------------
1993 1994 1995 1996
- -------------------------------------------------------------------------------
Operating Data:
- ---------------
- -------------------------------------------------------------------------------
Total interest income $6,698 $6,128 $6,378 $6,836
- -------------------------------------------------------------------------------
Total interest expense 3,454 2,934 3,271 3,949
----- ----- ----- -----
- -------------------------------------------------------------------------------
Net interest income $3,244 $3,194 $3,106 $2,887
- -------------------------------------------------------------------------------
Provision for loan losses 38 36 36 36
-- -- -- --
- -------------------------------------------------------------------------------
Net interest income after provision for $3,206 $3,158 $3,070 $2,851
loan losses
- -------------------------------------------------------------------------------
Other income 534 586 430 532
- -------------------------------------------------------------------------------
General, administrative and other 2,213 2,392 2,452 2,493
expenses ----- ----- ----- -----
- -------------------------------------------------------------------------------
Income (loss) before income taxes, $1,526 $1,352 $1,049 $ 890
credit and cumulative effect of change
- -------------------------------------------------------------------------------
Income tax expense (benefit) 570 492 329 299
--- --- --- ---
- -------------------------------------------------------------------------------
Income (loss) before credit cumulative $ 956 $ 860 $ 720 $ 591
effect of change in accounting for
income taxes
- -------------------------------------------------------------------------------
Cumulative effect of change in ---- ---- ---- ----
accounting principle
- -------------------------------------------------------------------------------
Net income $ 956 $ 860 $ 720 $ 591
===== ===== ===== =====
- -------------------------------------------------------------------------------
(1) Source: Richmond Savings Bank, S.S.B., Financial Statements
18
Table 13
Key Operating Ratios
At or for the Years Ended June 30, 1993, 1994, 1995, and 1996
(Dollars in Thousands)
- -------------------------------------------------------------------------------------------------------------
For the Years Ended
June 30,
- -------------------------------------------------------------------------------------------------------------
1993 1994 1995 1996
- -------------------------------------------------------------------------------------------------------------
Performance ratios: (%)
- -----------------------
- -------------------------------------------------------------------------------------------------------------
Return on average assets (Net income/average assets) 1.11% 0.98% 0.81% 0.64%
- -------------------------------------------------------------------------------------------------------------
Return on average equity (Net income/average equity) 15.82 12.27 9.3 7.01
- -------------------------------------------------------------------------------------------------------------
Interest rate spread 3.59 3.48 3.24 2.77
- -------------------------------------------------------------------------------------------------------------
Net yield on average interest-earning assets 3.91 3.79 3.64 3.26
- -------------------------------------------------------------------------------------------------------------
Average interest-earning assets to average 107.8 108.93 110.33 110.9
interest-bearing liabilities
- -------------------------------------------------------------------------------------------------------------
Asset quality ratios: (%)
- --------------------
- -------------------------------------------------------------------------------------------------------------
Non-performing assets to total assets 0.08% 0.13% 0.08% 0.06 %
- -------------------------------------------------------------------------------------------------------------
Allowance for loan losses to non-performing loans 438.57 282.14 484 1,296.67
- -------------------------------------------------------------------------------------------------------------
Allowance for loan losses to total loans 0.44 0.46 0.53 0.56
- -------------------------------------------------------------------------------------------------------------
Capital ratios: (%)
- --------------
- -------------------------------------------------------------------------------------------------------------
Equity-to-assets ratio (average equity/average assets) 7.07% 7.99% 8.69% 9.04%
- -------------------------------------------------------------------------------------------------------------
Equity-to-assets (end of period) 7.51 8.47 8.89 9.18
- -------------------------------------------------------------------------------------------------------------
Other data:
- ----------
- -------------------------------------------------------------------------------------------------------------
Net income (loss) $956 $860 $720 $591
- -------------------------------------------------------------------------------------------------------------
Average assets 86,028 87,428 89,457 92,760
- -------------------------------------------------------------------------------------------------------------
Average equity 6,083 6,988 7,771 8,385
- -------------------------------------------------------------------------------------------------------------
Total number of full service facilities 4 4 4 4
- -------------------------------------------------------------------------------------------------------------
(1) Source: Richmond Savings Bank, S.S.B., Financial Statements.
19
Table 13-A
Net Income for Trailing Twelve Months
(Dollars in Thousands)
- --------------------------------------------------------------------------------
9/30/95 12/31/95 3/31/96 6/30/96 Total
- --------------------------------------------------------------------------------
Net Income $152 $154 $157 $128 $591
- --------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
Table 14
Selected Operating Data-% of Average Assets
For the Years Ended June 30, 1993, 1994, 1995, and 1996
(Dollars in Thousands)
- -----------------------------------------------------------------------------------------
At June 30,
- -----------------------------------------------------------------------------------------
1993 1994 1995 1996
- -----------------------------------------------------------------------------------------
Average Assets $86,028 $87,428 $89,457 $92,760
- -----------------------------------------------------------------------------------------
Operating Data:
- ---------------
- -----------------------------------------------------------------------------------------
Total interest income 7.77% 7.00% 7.13% 7.37%
- -----------------------------------------------------------------------------------------
Total interest expense 4.01 3.36 3.66 4.26
---- ---- ---- ----
- -----------------------------------------------------------------------------------------
Net interest income 3.76 3.64 3.47 3.11
- -----------------------------------------------------------------------------------------
Provision for loan losses 0.04 0.04 0.04 0.04
---- ---- ---- ----
- -----------------------------------------------------------------------------------------
Net interest income after provision for loan 3.72 3.6 3.43 3.07
losses
- -----------------------------------------------------------------------------------------
Other income (loss) 0.62 0.67 0.48 0.57
- -----------------------------------------------------------------------------------------
General, administrative and other expenses 2.57 2.73 2.74 2.69
---- ---- ---- ----
- -----------------------------------------------------------------------------------------
Income (loss) before income taxes and cumulative 1.77 1.54 1.17 0.96
effect of change in accounting for income
taxes
- -----------------------------------------------------------------------------------------
Income tax expense (benefit) 0.66 0.56 0.36 0.32
---- ---- ---- ----
- -----------------------------------------------------------------------------------------
Income (loss) before cumulative effect of 1.11 0.98 0.81 0.64
change in accounting for income taxes
- -----------------------------------------------------------------------------------------
Cumulative effect of change in accounting ---- ---- ---- ----
principle
- -----------------------------------------------------------------------------------------
Net income 1.11 0.98 0.81 0.64
- -----------------------------------------------------------------------------------------
(1) Source: Richmond Savings Bank, S.S.B., Financial Statements
20
Comparison of Operating Results for the Fiscal Years Ended June 30, 1994,
------------------------------------------------------------------------------
1995, and 1996
--------------
General. The Savings Bank experienced moderate asset growth from June 30, 1994
of $87.5 million to $91.4 million at June 30, 1995, to $94.1 million at June 30,
1996. Net loans receivable remained stable increasing from $67.7 at June 30,
1994 to $68.7 million at June 30, 1995, and then decreased to $68.4 million at
June 30, 1996. The demand for the Bank's adjustable rate loans has not kept
pace with the Bank's deposit growth. During the same period, investments
increased from $16.0 million at June 30, 1994 to $18.5 million at June 30, 1995,
to $21.8 million at June 30, 1996. This investment growth was funded by the
growth in deposits from $78.3 million at June 30, 1994 to $81.4 million at June
30, 1995, to $83.7 million at June 30, 1996.
Net Income. Richmond Savings Bank's net income for the fiscal years ended June
30, 1994, 1995, and 1996 was $860,000, $720,000, and $591,000, respectively.
Net income was positively affected in 1994 by gains associated with the sale of
loans as management sold certain fixed rate loans in an effort to maintain and
improve the Bank's interest rate risk and liquidity positions while satisfying
demand in the Bank's market area for long-term fixed rate mortgage loans.
Declines in the Bank's net interest income, combined with increases in other
expenses and significant reduction in loan sales and resulting gains after
fiscal 1994, are primarily responsible for the respective decreases in net
income for 1995 and 1996.
Net Interest Income. Net interest income before provision for loan losses
decreased from $3.4 million in 1994 to $3.1 million in 1995, and then to $2.9
million in 1996. The decrease in net income is attributable to a decrease in
the interest rate spread from 3.48% in 1994 to 3.24% in 1995 to 2.77% in 1996.
The Bank's deposits are more rate sensitive than its interest-earning assets,
interest margins usually increase during periods of declining rates and decrease
during periods of increasing rates. In the middle of 1994, interest rates began
to increase and continued to increase through the end of 1995. The impact of
the increasing rates in 1995 resulted in an increase in interest costs $338,000
while interest income increased by only $250,000. The impact of increasing
rates during 1996 was an increase in interest costs of $678,000 while interest
income increased by only $459,000.
Provision for Loan Losses. Richmond Savings' provision for loan losses was
$36,000 during the years ended June 30, 1994, 1995, and 1996. At June 30, 1996,
the Savings Bank's allowance for loan losses was equal to 1,296% of non-
performing loans compared to 282% at June 30, 1994 and 484% at June 30, 1995.
The Bank experienced net loan charge-offs of $27,000 and $10,000 during the
years ended June 30, 1994 and June 30, 1996, respectively, as compared with a
net recovery of loans previously charged off of $11,000 during the year ended
June 30, 1995.
Non-Interest Income. Non-interest income decreased from $586,000 for the year
ended June 30, 1994 to $430,000 for the year ended June 30, 1995, and then
increased to $532,000 for the year ended June 30, 1996. The decrease in 1995
was mainly attributable to fluctuations on gains on loan sales which were
$151,000, $7,000, and $8,000 for 1994, 1995, and 1996, respectively.
21
Non-Interest Expense. Non-interest expense increased from $2.39 million in 1994
to $2.45 million in 1995, to $2.49 million in 1996, representing increases of
$60,000 and $41,000, respectively. The other expense increases were consistent
with the overall trend in inflation.
Income Taxes. Income tax expense decreased from $492,000 in 1994, to $329,000
in 1995, to $299,000 in 1996, with the decreases being primarily attributable to
corresponding decreases in income before taxes.
22
Primary Market Area
-------------------
The Savings Bank's primary market area is Richmond, Moore, and Scotland
Counties, in North Carolina. The Savings Bank operates from its office in
Rockingham located in Richmond County. Demographic growth trends in Richmond,
Moore, and Scotland Counties have been measured by changes in population, number
of households, mean household income, and per capita income with trends in those
areas summarized by the data represented in Table 15.
Population growth in Richmond County of 0.4% was less than the national and
North Carolina rates of 1.1% and 1.5%, respectively, from 1990 to 1995. Moore
County and Scotland County grew at 2.4% and 0.6%, respectively, during the same
period. Projected annual growth of the population through the year 2000 is
expected to be only 0.4% for Richmond County, 0.6% for Moore County, and 0.0%
for Scotland County over the next five years.
Median household income, as well as per capita income, in the Bank's market
area, with the exception of Moore County, is significantly below state and
national averages. The projected growth in the number of households in the
Savings Bank's market area is also significantly below state and national
averages. Mean income levels project household growth in Richmond, Moore, and
Scotland Counties to fall short of state averages, a typical trend among less
urban communities due to generally lower costs of living and less demand for
homes. In general, the demographic trends displayed in Table 15 are typical of
smaller, less urban market areas.
23
Table 15
Summary Demographic Data (1987$)
1990 1995 2000 Annual Forecasted
Census Estimate Forecast Growth Annual
Rate Growth Rate
1990-1995 1995-2000
Population (000)
United States 249,399 263,211 275,260 1.1% 0.9%
North Carolina 6,653 7,182 7,718 1.5 1.4
Richmond County 45 46 47 0.4 0.4
Moore County 59 66 68 2.4 0.6
Scotland County 34 35 35 0.6 0.0
Households (000)
United States 92,209 97,777 102,838 1.2% 1.0%
North Carolina 2,527 2,759 2,986 1.8 1.6
Richmond County 17 17 17 0.0 0.0
Moore County 24 26 27 1.7 0.8
Scotland County 12 12 12 0.0 0.0
Mean Household Income ($)
United States $ 42,977 $ 44,363 $ 47,853 0.6% 1.5%
North Carolina 36,307 37,531 40,597 0.7 1.6
Richmond County 29,384 29,206 31,402 -0.1 1.5
Moore County 40,445 40,748 43,832 0.1 1.5
Scotland County 30,304 32,815 35,540 1.7 1.7
Per Capita Income ($)
United States $ 16,246 $ 16,862 $ 18,315 0.7% 1.7%
North Carolina 14,172 14,820 16,152 0.9 1.7
Richmond County 11,284 11,202 12,069 -0.1 1.5
Moore County 16,556 16,684 18,024 0.2 1.6
Scotland County 10,906 11,826 12,876 1.7 1.8
Source: (1) Woods & Poole Economics, Inc., 1994, State Profile of North
Carolina
24
Tables 16-A through 16-C display selected deposit market data for the Richmond,
Moore, and Scotland Counties as of June 30, 1995. Richmond Savings, a mutually
chartered state savings bank, is the only home based financial institution in
Richmond County. In June 1995, Richmond Savings' market share of total deposits
in Richmond County was 21.0%, Moore County was 1.4%, and Scotland County was
0.0%. Richmond Savings was second only to United Carolina Bank (UCB) in
Richmond County. UCB held the largest deposit market share of 27.5%. In
Scotland County, Richmond Savings operates a loan production office. Since a
loan production office is not considered a full-service banking office, the
Savings Bank's market share of total deposits in Scotland County as listed in
Table 16-C was 0.0% as of June 30, 1995. However, the Savings Bank does collect
deposits from Scotland County through banking offices in Richmond County.
Table 16-A
Selected Deposit Market - Richmond County
- --------------------------------------------------------------------------------
Total % of County
Deposits Market Share '95
No. of 6/95 (%)
Name Branches ($000s)
- --------------------------------------------------------------------------------
Richmond Savings Bank, S.S.B. 3 $ 71,210 21.0%
- --------------------------------------------------------------------------------
United Carolina Bank and Trust Company 4 93,287 27.5
- --------------------------------------------------------------------------------
Branch Banking & Trust Company 3 70,983 20.9
- --------------------------------------------------------------------------------
Centura Bank 2 35,099 10.3
-- -------- -----
- --------------------------------------------------------------------------------
Totals for selected banks 12 $270,579 79.7%
== ======== =====
- --------------------------------------------------------------------------------
Totals in Richmond County 18 $339,702 100.0%
-------- -----
- --------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements; FDIC
25
Table 16-B
Selected Deposit Market - Moore County
- --------------------------------------------------------------------------------
Total % of County
Deposits Market Share '95
No. of 6/95 (%)
Name Branches ($000s)
- --------------------------------------------------------------------------------
Richmond Savings Bank, S.S.B. 1 $ 11,743 1.4%
- --------------------------------------------------------------------------------
Branch Banking & Trust Company 8 248,426 29.8
- --------------------------------------------------------------------------------
First Savings Bank of Moore County 5 183,185 22
- --------------------------------------------------------------------------------
First Bank 6 70,605 8.5
- --------------------------------------------------------------------------------
First Union 2 75,021 9
- --------------------------------------------------------------------------------
Centura Bank 4 52,387 6.3
- ------ ---
- --------------------------------------------------------------------------------
Totals for selected banks 26 $641,367 77.0%
== ======== =====
- --------------------------------------------------------------------------------
Totals in Moore County 39 $832,791 100.0%
== ======== ======
- --------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements; FDIC
Table 16-C
Selected Deposit Market - Scotland County
- --------------------------------------------------------------------------------
Total % of County
Deposits Market Share '95
No. of 6/95 (%)
Name Branches ($000s)
- --------------------------------------------------------------------------------
Richmond Savings Bank, S.S.B. (1) 0 $ 0 0%
- --------------------------------------------------------------------------------
Wachovia Bank of North Carolina, NA 3 72,837 35.6
- --------------------------------------------------------------------------------
Branch Banking & Trust Company 2 45,625 22.3
- --------------------------------------------------------------------------------
Scotland Savings Bank, S.S.B. 1 42,632 20.8
- ------ ----
- --------------------------------------------------------------------------------
Totals for selected banks 6 $161,094 78.7%
= ======== =====
- --------------------------------------------------------------------------------
Totals in Scotland County 11 $204,640 100.0%
== ======== ======
- --------------------------------------------------------------------------------
(1) Richmond Savings Bank does not have a full-service banking office in
Scotland County. Deposits from Scotland County are received in Richmond
Savings Bank's offices in Richmond County.
Source: Richmond Savings Bank, S.S.B., Financial Statements; FDIC
26
Summary
- -------
Richmond Savings operates in an economically diverse market area. The Bank's
customer base consists of residents from Richmond, Moore, and Scotland Counties
which have been experiencing moderate population and economic growth. The
economic stability of the market area is favorable as evidenced by the variety
of industries located nearby, based primarily on manufacturing and agriculture.
Competition in the Savings Bank's market area is strong, however, Richmond
Savings maintains a favorable image as the only locally-owned and community-
oriented financial institution, and thus has been able to maintain its
deposit market share.
27
II. COMPARISONS WITH PUBLICLY TRADED THRIFTS
General
- -------
The comparative market approach provides a sound basis for making valuation
estimates for going-concerns where a large and liquid market exists for peer
institutions. The comparative market approach was utilized in deriving a value
for Richmond Savings since reliable data is readily available for comparable
institutions, this methodology is favored under the conversion guidelines, and
other alternative valuation methods (such as a liquidation valuation, discounted
cash flow, capitalization of gross revenues, and others) are unlikely to produce
a value relevant to the conversion transaction. The generally employed
valuation methodology in initial public offerings, where possible, is the
comparative market approach. The comparative market approach derives a value
from the trading pattern of comparable institutions. The pricing and trading
history of recent conversion offerings provide evidence of the "new issue
discount" which must be considered in all initial public offerings. Chapter III
will detail the new issue discount which we believe is appropriate to Richmond
Savings' offering.
This chapter selects and compares Richmond Savings with a group of publicly
traded thrift institutions (the "comparative group") in order to determine the
appropriate adjustments to the Savings Bank's pro forma market value relative to
publicly traded companies. Exhibits III-1 through III-8 contain financial
comparisons of the Savings Bank with the selected comparative group based on
measures of profitability, income and expense trends, yield-cost structure,
capital levels, balance sheet composition, and risk measures. The selection
criteria employed for the comparative group, and a comparison of the Savings
Bank's financial performance with the comparative group are highlighted below.
Exhibit III-9 contains public companies considered for the comparative group
that were excluded because of their dissimilar financial characteristics or
unreasonable geographic location when compared to the Savings Bank.
Selection Criteria
- ------------------
Selected market price and financial data for thrifts listed on the New York and
American Stock Exchanges and those thrifts traded on the national over-the-
counter ("OTC") markets listed on the National Savings Bank of Securities
Dealers Automated Quotation System ("NASDAQ") are shown in Exhibit IV-1.
Several criteria, discussed below, were used to select the comparative group
from among this larger publicly traded group.
Trading volume and degree of liquidity. The existence of an active and regular
- ---------------------------------------
trading market for the stock is imperative because the reliability of share
price data on thinly traded stocks is sometimes questionable due to infrequent
trades or widely varying transaction prices. Therefore, the available pricing
information on thinly traded stocks may not be a sound indicator of current
market conditions and could be particularly misleading as an indicator of market
conditions for the to-be-issued stock of a converting savings institution. To
insure the equities in the comparative group have access to an active and
regular trading market, we attempted to limit our selection to companies listed
on the three major exchanges and those demonstrating an active and liquid
trading market. However, we did select some savings institutions that were not
listed on one of the three major exchanges in order to include institutions in
North Carolina. Even on the
28
three major exchanges trading volume in all stocks varies considerably,
especially among the OTC-listed companies. Therefore, the underlying reasons for
the volume of trading for particular issues must be given consideration. We
attempted to eliminate 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
embedded in the thrift equities' market.
Geographic Location. The region of the country where a company operates is also
- --------------------
of considerable importance in selecting the comparative group. The operating
environment for savings institutions can vary greatly from state to state, with
respect to legal and regulatory climates from region to region because of
economic characteristics, real estate market conditions, takeover activity, and
investment climates. Economic and investor climates can vary greatly within a
region, particularly due to takeover activity. We attempted to select savings
institutions in the Southeast, primarily in North Carolina, that also met most
of the other criteria.
Operating characteristics. Critically, an institution's operating
- --------------------------
characteristics are important factors because they effect investors' expected
rates of return on a company's stock under various 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. Asset quality remains significant among
investor considerations as thrift earnings problems in the current interest rate
environment are frequently due to real estate problems.
In arriving at a comparative group for Richmond Savings, we initially examined
the universe of profitable similarly sized thrifts (under $100 million, where
possible) and thrifts headquartered in or near North Carolina. We considered
Richmond Savings' loan portfolio consisting primarily of one-to-four family
residential loans and the wide variety of deposit products it offers, as
critical variables which distinguish Richmond Savings from other thrift
institutions. Another issue of importance was the criterion of capitalization.
We included companies that offered mortgage loans as well as non-mortgage loans.
Richmond Savings' historic core earnings are strong and we generally excluded
companies reporting negative earnings, unless other factors outweighed this
restriction. We also eliminated companies in less favorable market areas and
relaxed our criteria modestly for institutions located in the Southeast. Where
possible, we included companies headquartered in or near North Carolina.
Table 17 provides a summary of the general characteristics of Richmond Savings
and the ten companies selected for the comparative group. Exhibit III-8
provides a comparison of the loan portfolios of the individual comparative
companies and the Savings Bank. While differences inevitably exist between the
Savings Bank and the individual comparative companies, we believe the
comparative group provides a basis for meaningful comparisons for valuation
purposes. We included within the comparative group five thrifts located in
North Carolina, one thrift located in Virginia, two thrifts located in Ohio, one
thrift located in Kentucky, and one thrift located in Alabama. The chosen
companies ranged in asset size from $56.4 million to $256.3 million, with five
of the ten having an asset size under $100.0 million.
29
TABLE 17
GENERAL CHARACTERISTICS
RICHMOND SAVINGS BANK AND THE COMPARATIVE GROUP
AS OF JUNE 30, 1996
Intangible
Number Total Equity/ Assets/ NPAs/
of Assets Assets Equity Assets
Ticker Institution City State Offices IPO Date ($000) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------
RICHMOND SAVINGS (as of 6/30/96) Rockingham NC 4 10/29/96 94,110 9.18 0.00 0.06
- ---------------------------------------------------------------------------------------------------------------------------
Comparative Group:
Maximum 6 256,294 29.77 0.10 1.48
Minimum 1 56,489 14.60 0.00 0.00
Average 3 114,281 20.77 0.01 0.35
Median 3 102,627 20.65 0.00 0.14
ASBP ASB Financial Corp. Portsmouth OH 1 05/11/95 111,718 23.08 0.00 1.48
BFSB Bedford Bancshares, Inc. Bedford VA 3 08/22/94 121,783 15.22 0.00 0.00
FFWD Wood Bancorp, Inc. Bowling Green OH 6 08/31/93 139,718 14.60 0.00 0.04
FSBS First Ashland Financial Corp Ashland KY 3 04/07/95 86,860 27.21 0.00 NA
FSVF First Savings Financial Corp Reidsville NC 1 09/25/95 58,799 18.22 0.00 0.41
HSSC Home Savings Bank of Siler Cty Siler City NC 1 11/16/95 56,489 23.72 0.00 0.08
KSAV KS Bancorp, Inc. Kenly NC 3 12/30/93 93,536 14.79 0.10 0.51
PDB Piedmont Bancorp, Inc. Hillsborough NC 2 12/08/95 128,711 29.77 0.00 0.44
SOPN First Savings Bancorp, Inc. Southern Pines NC 5 01/06/94 256,294 26.21 0.00 0.03
SZB SouthFirst Bancshares, Inc. Sylacauga AL 2 02/14/95 88,899 14.89 0.00 0.14
1-4 Family 1-4 Family 1-4 Family
LTM Permanent Permanent Permanent
Number Return on Mort Loans/ Mort Loans/ Mort Loans/
of Avg Assets Assets Mortgages Loans
Ticker Institution City State Offices IPO Date (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
RICHMOND SAVINGS (as of 6/30/96) Rockingham NC 4 10/29/96 0.64 58.85 96.58 81.02
- ----------------------------------------------------------------------------------------------------------------------------------
Comparative Group:
Maximum 6 1.48 76.95 96.11 94.88
Minimum 1 0.08 45.21 71.38 67.26
Average 3 1.00 59.92 87.85 83.88
Median 3 1.11 63.95 91.11 89.33
ASBP ASB Financial Corp. Portsmouth OH 1 05/11/95 1.02 45.21 79.45 69.90
BFSB Bedford Bancshares, Inc. Bedford VA 3 08/22/94 1.29 64.56 80.48 73.59
FFWD Wood Bancorp, Inc. Bowling Green OH 6 08/31/93 1.17 64.12 91.88 80.51
FSBS First Ashland Financial Corp Ashland KY 3 04/07/95 0.96 70.14 93.99 90.39
FSVF First Savings Financial Corp Reidsville NC 1 09/25/95 0.08 47.70 89.95 89.72
HSSC Home Savings Bank of Siler Cty Siler City NC 1 11/16/95 NA 50.79 96.11 94.88
KSAV KS Bancorp, Inc. Kenly NC 3 12/30/93 1.11 76.95 93.03 92.74
PDB Piedmont Bancorp, Inc. Hillsborough NC 2 12/08/95 1.35 65.30 90.72 88.94
SOPN First Savings Bancorp, Inc. Southern Pines NC 5 01/06/94 1.48 63.77 91.50 90.83
SZB SouthFirst Bancshares, Inc. Sylacauga AL 2 02/14/95 0.55 50.61 71.38 67.26
The following provides a brief discussion of each company including the reasons
for their inclusion within the comparative group and noting differences with
Richmond Savings and the comparative group overall.
ASB Financial Corp.; Portsmouth, OH: ASB's asset size is $111.7 million. ASB's
- ------------------------------------
reported returns on average assets of 102 basis points for the twelve months
ended June 30, 1996. ASB is a profitable institution with 69.90% of its loan
portfolio of one-to-four family mortgage loans and moderate levels of non-
performing assets (1.48% of total assets). ASB has a capital level of 23.08%
and converted to a stock institution in May, 1995. ASB's financial performance,
loan portfolio composition, and size make it a good comparable to Richmond
Savings.
Bedford Bancshares, Inc.; Bedford, VA: Bedford is located in the Southeast in
- --------------------------------------
Virginia as is Richmond Savings Bank, S.S.B. in North Carolina. Its asset base
is comprised predominantly of one-to-four family mortgages at 64.56% of assets
and 73.59% of total loans. As of June 30, 1996, total assets were $121.7
million and equity was 15.22% of assets. Bedford is profitable reporting a
return on average assets of 1.29% for the last twelve months. Bedford is a good
comparable for Richmond Savings because of its financial performance, its
location in the Southeast, and its loan portfolio composition.
Wood Bancorp, Inc.; Bowling Green, OH: Wood's asset size is $139.7 million.
- --------------------------------------
Wood's loan portfolio of one-to-four family mortgages at 80.51% of total loans
(64.12% of total assets) is also comparable. Wood's level of equity was 14.60%
of assets. Return on average assets for the last twelve months ended June 30,
1996 was 1.17%. Wood converted to a stock institution in August, 1993. Its
loan portfolio composition and financial performance make it a good comparable
to Richmond Savings.
First Ashland Financial Corp.; Ashland, KY: FA Financial Corp. is located in
- -------------------------------------------
Ashland, Kentucky. FA's total asset size at $86.8 million is close to the asset
size of Richmond Savings. FA converted to a stock institution in April, 1995.
FA operates as a thrift institution with a concentration of conventional
mortgage loans, representing approximately 70.14% of assets and 90.39% of
mortgage loans. FA is a profitable institution with no non-performing assets
(0.00% of total assets). FA has a capital level of 27.21% of assets and
experienced a trailing twelve month return on average assets of 96 basis points.
FA's size and heavy concentration in mortgage loans make it comparable to
Richmond Savings.
First Savings Financial Corp.; Reidsville, NC: First Savings is located in a
- ----------------------------------------------
small community in North Carolina. First Savings' loan portfolio has a high
level of one-to-four family mortgages. One-to-four family mortgages comprise
47.70% of assets and 89.95% of mortgage loans. First Savings converted on
September 25, 1995. First Saving's asset size is smaller than Richmond Savings'
at $58.7 million, but was included due to its location in North Carolina.
Home Savings Bank of Siler City; Siler City, NC: Home Savings is located in
- ------------------------------------------------
Siler City, North Carolina which is also a small community in North Carolina.
Home Savings has a loan portfolio that is concentrated in single-family
mortgages totaling 96.11% of total mortgage loans and 94.88% of total loans.
Home Savings has a high capital ratio of 23.72%. Though Home Savings is smaller
than Richmond Savings, with assets of $56.4 million, its North Carolina location
and its high concentration of one-to-four single family mortgages make it an
excellent comparable.
30
KS Bancorp, Inc.; Kenly, NC: KS's total asset size was $93.5 million, which is
- ----------------------------
slightly smaller than Richmond Savings, and is a profitable, thrift institution.
The loan portfolio is comprised of one-to-four- family mortgages totaling
92.74%. Non-performing assets were 0.51% of total assets. KS's return on
assets over the last twelve months was 111 basis points. KS converted in
December of 1993. KS's size, high concentration of one-to-four family
mortgages, asset quality, and North Carolina location make it an excellent
comparable.
Piedmont Bancorp, Inc.; Hillsborough, NC: Piedmont's assets were $128.7 million
- -----------------------------------------
and equity was 29.77% of assets. Piedmont's one-to-four-family mortgages were
88.94% of total loans and 90.72% of total mortgages. Non-performing assets were
0.44% of total assets. Piedmont's profitability was 1.35% of average assets for
the last twelve months. Piedmont was selected as a comparable institution
because of its North Carolina location and its financial performance.
First Savings Bancorp; Southern Pines, NC: FS converted early in 1994. As of
- ------------------------------------------
June 30, 1996, equity was 26.21% of total assets. One-to-four family mortgages
were 91.50% of total mortgages and 63.77% of total assets of $256.2 million. FS
had non-performing assets at 0.03% of total assets and its return on average
assets for the last twelve months was 148 basis points. FS's location in North
Carolina (within the same market area) and its low level of non-performing
assets matches Richmond Savings as well as any of the comparable institutions.
SouthFirst Bancshares, Inc.; Sylacauga, AL: SouthFirst converted to a stock
- -------------------------------------------
institution in February, 1995. One-to-four family mortgages were 67.26% of
total loans, but only 50.61% of assets. SouthFirst reported a return on average
assets of 55 basis points for the twelve months ended June 30, 1996.
SouthFirst's total assets were $88.8 million and equity was 14.89% of assets.
SouthFirst's non-performing assets were 0.14% of assets. SouthFirst's location
is not in North Carolina, but its asset size and financial performance make the
institution a good comparable to Richmond Savings.
31
Financial Comparisons
---------------------
Table 18 summarizes certain key financial comparisons shown in Exhibit III
between Richmond Savings and the comparative group, indicating the comparative
group averages and medians. Data for the comparables was as of or for the twelve
months ended June 30, 1996 unless otherwise noted in Exhibit III. Data for the
Savings Bank was also as of or for the twelve months ended June 30, 1996.
Richmond Savings' preconversion net income as a percentage of average assets
measured 64 basis points for the year ended June 30, 1996. The comparative
group average return on average assets was 100 basis points and the median
return on average assets was 11 basis points. In our opinion, no significant
adjustments to the net income number were necessary for a more accurate
reflection of the profitability of the Savings Bank.
The Savings Bank's profitability is generated principally through its net
interest spread. The Savings Bank's ratios of net interest income to average
assets, net interest margin, and yield-cost spread were below the comparative
group averages and medians. The Savings Bank's net interest income was 3.11%
for the twelve months ended June 30, 1996, while the comparative group average
and median were 3.59% and 3.61%, respectively. The Savings Bank's net interest
margin at 2.77% was below the comparative group average and median of 3.72% and
3.74%, respectively. The Savings Bank's cost of funds was below the comparative
measures as was its yield on interest-earning assets.
The Savings Bank's total other non-interest income as a percentage of average
assets was 57 basis point during the trailing twelve months ended June 30, 1996,
which was higher than comparative group's average of 20 basis points. The
Savings Bank's total non-interest expense at 2.69% of average assets for the
last twelve months ended June 30, 1996, was slightly higher than the comparative
group average of 2.27%.
Cash and investments totaled 23.65% of assets for the Savings Bank and averaged
22.66% of assets for the comparative group at June 30, 1996. Gross loans were
73.99% of total assets for the Savings Bank, compared to an average of 70.32%
for the comparative group. The Savings Bank held mortgage-backed securities of
1.92% of assets, while mortgage-backed securities averaged 4.79% of assets for
the comparative group. The Savings Bank reported no intangible assets and the
comparative group average was zero with most comparative companies also
reporting no intangibles.
The Savings Bank's ratio of deposits to assets was 88.95%, which was above the
comparative group's average of 77.02% and median of 77.60%. The Savings Bank
had no borrowed funds compared to average borrowings of 2.54% of assets for the
comparative group. The Savings Bank's pre-conversion equity to asset position of
9.18% was lower than the post-conversion average equity of 17.04%.
The Savings Bank is exposed to lower credit risk than most individual
comparative companies. Non-performing assets were lower at 0.06% of assets for
the Savings Bank versus a 0.35% average and a 0.11% median for the comparative
group. Non-performing loans as a percentage of total loans receivable were
0.04% for the Savings Bank, below the 0.43% comparative average and
32
0.16% comparative group median. The ratio of loan loss reserves to total loans
outstanding was 0.57% for the Savings Bank and averaged 0.63% for the
comparative companies. The Savings Bank had 0.01% in charge-offs during the
period and charge-offs for the comparative companies were (0.03%) of average
loans.
33
TABLE 18
Key Financial Indicators
RICHMOND SAVINGS BANK and the Comparative Group
Richmond Savings Comparative Group Average Comparative Group Median
(LTM ended (LTM ended (LTM ended
Profitability (% of Avg. Assets) June 30, 1996) June 30, 1996) June 30, 1996)
Net Income 0.64 1.00 1.11
Core Earnings (before gains) 0.63 0.98 1.12
Return on Average Equity 7.01 5.30 5.68
Interest Income 7.37 7.54 7.46
Interest Expense 4.26 3.94 3.79
Net Interest Income 3.11 3.59 3.61
Net Interest Margin 2.77 3.72 3.74
Provision for Loan Losses 0.04 0.04 0.04
Gains on Sale of Assets 0.01 0.02 0.01
Real Estate Income 0.00 (0.00) 0.00
Other Non-Interest Income 0.57 0.20 0.14
Non-Interest Expense 2.69 2.27 2.11
Intangible Amortization Expense 0.00 0.00 0.00
Yield-Cost Data
Yield on Interest-Earning Assets 7.72 7.81 7.74
Cost of Interest-Bearing Liabilities 4.94 5.05 4.98
Net Interest of Yield-Cost Spread 2.77 2.77 2.97
Asset Utilization (% of Avg. Assets)
Avg. Interest-Earning Assets 95.49 96.48 96.59
Avg. Interest-Bearing Liabilities 86.10 78.23 78.28
Net Interest-Earning Assets 9.39 18.25 16.64
Financial Concentration (% of Total Assets)
Cash and Investments 23.65 22.66 21.13
Gross Loans 73.99 70.32 71.81
Mortgage-Related Securities 1.92 4.79 4.06
Inv. & Foreclosed Real Estate 0.03 0.09 0.01
Intangible Assets 0.00 0.00 0.00
Total Deposits 88.95 77.02 77.60
Borrowed Funds 0.00 2.54 1.20
Total Equity 9.18 17.04 15.88
Risk Measures
Non-performing Assets/Total Assets 0.06 0.35 0.11
Non-performing Assets/Total Equity 0.68 1.70 0.94
Net Charge-offs/Avg. Loans 0.01 (0.03) 0.00
Reserves/Non-performing Assets 659.32 365.71 167.19
Non-performing Loans/Loans 0.04 0.43 0.16
Loan Loss Reserves/NPLs 1,296.67 488.72 198.96
Reserves/Loans 0.57 0.63 0.54
Growth Rates
Total Assets 2.95 8.38 7.00
Loans Receivable 0.56 7.66 7.38
Total Deposits 2.80 1.60 1.20
Source: Richmond Savings Bank, Financial Statements; SNL Securities, Inc.
III. MARKET VALUE ADJUSTMENTS
This chapter identifies the adjustments to the Savings Bank's estimated pro
forma market value because of the financial differences between Richmond Savings
and the comparative group. Adjustments are also necessary to reflect the equity
market's likely reception of a new thrift stock offering. The adjustments
discussed in this chapter are made from the viewpoint 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 Savings Bank relative to other publicly traded
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 of the Issue
(6) Subscription Interest
(7) Regulatory Environment
(8) Stock Market Conditions and New Issue Discount
The final section of this chapter identifies the Savings Bank's estimated pro
forma market value, and compares the resulting company with members of the
comparative group, and the all public thrift aggregate with respect to market
valuation ratios.
Earnings Prospects
- ------------------
Earnings prospects depend upon the relative sensitivity of asset yields and
liability costs to changes in market interest rates (which are displayed in
Exhibit IV-3), 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.
Richmond Savings' profitability peaked in 1993. The lower level profitability
in 1994 was fueled by a higher interest rate environment. Net interest income
fell during 1995 as customers refinanced to lower interest rates and the
competitive pressure to pay higher rates on CDs lowered the profitability. Net
interest income declined during 1996 relative to the comparable 1995 due to the
increase in interest rates that caused the cost of deposit interest to increase
more rapidly than the yield on interest-earning assets.
As discussed in Chapter II, the Savings Bank compared favorably to peer
institutions on selected profitability measures. The Savings Bank generates a
higher return on equity at 7.01% than the comparable group, which averages
5.30%, and has lower growth rates in assets, loans, and deposits than those of
the comparative group.
34
A critical question facing many institutions, including Richmond Savings, is
whether net interest margins have peaked in the current interest rate
environment. In the last twelve months, the Savings Bank experienced a
shrinkage of the net interest margin which probably indicates that the Savings
Bank's net interest margin has peaked for now. Thus, future earnings
enhancement is unlikely to come from improving spreads and more likely to be
predicated on business expansion and expense controls. Though Richmond Savings'
asset base is growing, the balance sheet indicates it may have difficulty in the
future increasing earnings through growth. Positively, the Savings Bank's asset
quality is good and management remains committed to maintaining asset quality.
Given the composition of the loan portfolio, significant asset quality problems
are unlikely.
The comparative companies were selected to represent thrift institutions which
face the same pressures as the Savings Bank. When the Savings Bank is compared
to the comparative group, the Savings Bank's asset growth and its level of
profitability is lower. For this reason, we believe a slight downward
adjustment should be made for earnings prospects.
Market Area
- -----------
As discussed in Chapter I, the Savings Bank maintains a larger share of its
local deposit and lending market in Richmond County than it does in Moore and
Scotland Counties. The Bank also faces competition in its market area from
larger institutions with greater resources, as is typical of institutions of its
asset size. The Savings Bank's primary market area is rural and is not
projected to grow by more than 1 to 2 percent in the next five years. The
Bank's deposit market share has declined in all but one of the three counties it
serves. Overall, we believe that a slight downward adjustment is warranted to
reflect the increased competition and slow population growth.
Management
- ----------
Management has operated the Savings Bank in a conservative manner, stressing an
adequate capital level and maintaining good asset quality. The result has been
an increase in capital. Management of the individual comparative companies face
similar demands as the Savings Bank's management. We do not believe that the
demands placed on the Savings Bank's management exceed those experienced by most
public thrift institutions and the Savings Bank appears to have competent
management for its business strategy. Management also has a detailed management
succession plan in place that should assure the continued progress of the
Savings Bank and that the assets will be properly safeguarded in the event of
the personal disaster of any of the key management personnel. Accordingly, we
believe no adjustment should be made for management.
Liquidity
- ---------
Small conversion offerings often do not have a firm and liquid market after
conversion. The market for Richmond Savings' common stock following the
conversion based on the Savings Bank's plan is to list on NASDAQ. A lack of
liquidity in a stock typically reduces investor demand for the stock and is a
negative consideration. The degree of the discount which is experienced by
liquid stocks relative to more widely traded shares is not subject to a precise
determination. Several studies suggest that the discount could be large.
35
Modestly capitalized thrifts listed on NASDAQ appear to be trading at a discount
relative to thrifts overall. This is because trading activity remains very low.
To some extent, a discount for liquidity is evident among the smaller market
capitalized comparative companies. The Savings Bank's capital at the midpoint
is close to the average of the comparative group. Therefore, we do not believe
an adjustment for liquidity is warranted.
Dividends
- ---------
The Savings Bank will consider paying an annual dividend following conversion.
The Savings Bank has sufficient capital and earnings to pay a dividend. Since
most thrifts pay some kind of dividend, we do not believe an adjustment is
warranted for dividends.
Subscription Interest
- ---------------------
It is very difficult to predict the outcome of subscription offerings. In
recent years, initial offerings of publicly traded thrift stocks attracted a
great deal of professional investor interest, which resulted in sell-outs in the
subscription phase. During the last half of 1994, as valuation ratios were
pushed higher, offerings experienced lackluster subscription interest. In the
second half of 1995 the interest for these offerings was extremely strong. The
first few conversions of 1996 have reached even new valuation highs. There is,
however, some indication from underwriters that the interest level is peaking as
valuation levels may have become too high for the sophisticated investor. The
Savings Bank's offering will be only to members of the Bank. Based on this
limited offering, we believe that a slight downward adjustment is warranted at
this time.
Recent Regulatory Changes
- -------------------------
As widely reported, the regulatory environment for conversions changed
significantly. Responding to large after-market price increases of many earlier
conversions, the regulatory focus shifted towards minimizing short-term after-
market appreciation. The federal regulatory agencies publicly stated that only
modest after- market price appreciation will be tolerated. New appraisal
guidelines indicate the adequacy of the appraisal will be judged by the
immediate price movement of conversions in the after-market, utilizing the
closing price on the second trading day after closing. The average price
appreciation of all IPOs was between 10%-15% during the past few years. The
regulatory guidelines indicate that this is unacceptable for conversion
offerings.
There is wide variability in the after-market performance of all initial public
offerings. Market conditions at the time of the offering, economic conditions
facing the specific industry and company and investor perception of potential
returns are critical factors in after-market performance of any particular IPO.
When making a decision to invest in a thrift conversion, investors will compare
the potential for after-market price appreciation in a conversion offering with
that of alternative investments, including other IPOs. When the price
performance of recent conversions turned negative, many investors refused to
continue to participate.
Investors have and are likely to continue to look negatively upon the regulatory
environment facing conversion offerings and the thrift industry and the
uncertainty regarding the ultimate pricing levels which the regulators will
require. We have taken into account the changing regulatory requirements in
valuing Richmond Savings' conversion and have made a downward adjustment
36
because of the decline in the one-week price changes for conversions in the
first part of 1996 when compared to the one-week price changes for conversions
from the second half of 1995.
Stock Market Conditions
- -----------------------
Table 19 displays the performance of the SNL Thrift Index during the past three
years. During 1994, interest rates moved upward as the Federal Reserve raised
short-term interest rates several times. Economic reports displayed continued
strong growth, and earnings reports indicating little to no earnings growth at
some institutions helped to depress thrift and bank stock prices. During the
spring of 1994, falling bond prices and inflation fears caused declining stock
prices among financial services and other interest rate sensitive companies.
Thrift stocks regained some momentum during the summer months as inflation fears
eased slightly. A sell-off resumed during the Fall as indicated by the SNL
Index fall of 15.4% between September 1 and December 1, 1994. Thrift stocks
declined more steeply than the bond market averages because of higher interest
rates which included an increase in the 30 year bond over 8.00% and the Federal
Reserve's short-term interest rate hike of 0.75% in mid-November. Following the
mid-November rate hike and a brief rally in the bond market, thrift stocks
traded within a narrow range as the year headed towards a close. The downward
trend among thrift stock prices was quickly reversed early in 1995 as economic
news indicated the Federal Reserve's prior actions to slow the economy were
having a noticeable impact.
A strong bond market and a consensus among investors that the Federal Reserve
would not raise short-term rates further pushed stock prices higher. Through
the second half of 1995 as the Federal Reserve lowered interest rates, the stock
prices continued ever higher. During the first part of 1996, bond prices began
to decline and increases in the SNL Index slowed from the growth experienced in
the last half of 1995. On January 31, 1996, the SNL Index closed at 371
representing a 44.9% increase from 256 on January 31, 1995. The SNL Index
peaked on August 8, 1996, at 399, which represents a 7.5% increase since January
31, 1996. Almost all of the increase in the index occurred in 1995 as indicated
by the increase from January 1, 1995. During July 1996, uncertainty about the
Federal Reserve raising interest rates and mixed signals from economic data
further impacted stock market fluctuations. Based on the relatively flat
increase in the SNL index of 4.5% from March 29, 1996, through August 8, 1996,
we have adjusted Richmond Savings slightly downward.
37
Table 19
SNL Thrift Index Monthly Performance
January 3, 1994 to August 8, 1996
% % %
SNL Thrift Index Change Since Change Since Change Since
01/03/94 01/31/95 1/31/96
1994
- ----
January 3 253 -- -- --
February 1 257 1.9 -- --
March 1 245 -2.8 -- --
April 1 242 -4.3 -- --
May 2 249 -1.3 -- --
June 1 263 4.3 -- --
July 6 274 8.4 -- --
August 1 277 9.8 -- --
September 1 286 13.4 -- --
October 3 277 9.8 -- --
November 1 259 2.5 -- --
December 1 242 -4.3 -- --
December 30 244 -3.6
1995
- ----
January 31 256 1.2 -- --
February 28 277 9.5 8.2 --
March 31 278 9.9 8.6 --
April 28 295 16.6 15.2 --
May 31 308 21.7 20.3 --
June 30 314 24.1 22.7 --
July 31 328 29.6 28.1 --
August 31 356 40.7 39.1 --
September 29 362 43.1 41.4 --
October 31 354 39.9 38.2 --
November 30 370 46.2 44.5 --
December 29 377 49.1 47.2 --
1996
- ----
January 31 371 46.7 44.9 --
February 29 373 47.4 45.7 0.5
March 29 382 51 49.2 3
April 30 380 50.2 48.4 2.4
May 31 383 51.4 49.6 3.2
June 28 387 53 51.2 4.3
July 31 390 54.2 52.3 5.1
August 8 399 57.7 55.9 7.5
38
Recent Acquisitions in the Savings Bank's Market Area
- -----------------------------------------------------
Acquisition speculation is one factor impacting the prices of newly-converted
thrifts in the aftermarket. Table 20 displays acquisitions of North and South
Carolina thrifts announced from January 1, 1993 through December 31, 1995.
During 1993, 1994, and 1995, there were 15, 18, and 9 transactions completed
respectively. The average price/book ratio for transactions in 1995 was 207.3%,
168.6% in 1994, and 167.5% in 1993. The average acquisition price/trailing
twelve months earnings ratio was 24.6 in 1995, 17.5 in 1994, and 16.6 in 1993.
Continued industry consolidation impacts thrift stock prices and to some degree,
influences the trading pattern of the comparative companies. Due to the
acquisition activity primarily in North Carolina we have made an upward
adjustment.
39
TABLE 20
RECENT NORTH AND SOUTH CAROLINA ACQUISITIONS
1993-1995
Deal Value Target Assets P/B P/E
Buyer State Seller State ($000) ($000) (%) (x) Status
- ----- ----- ------ ----- ------ ------ --- --- ------
==========================================================================================================================
Average for the Year 1995 43.2 244.5 207.3 24.6
==========================================================================================================================
First Charter Corp. NC Bank of Union NC 32.6 126 304.00 22.90 Closed
Centura Banks NC First Commercial Holding NC 54.2 175 287.00 18.60 Closed
First Bancorp NC First Scotland Bank NC 2.3 21 134.00 N/A Closed
First Union Corp. NC RS Financial Corp. NC 111.6 787 162.00 19.90 Closed
United Carolina Bancshares NC Seaboard Savings Bank NC 9.4 45 159.00 38.10 Closed
First Citizens SC SNB Financial Corp. SC 3.9 24.2 154.00 N/A Closed
United Carolina Bancshares NC Triad Bank NC 37.5 199 251.00 20.40 Closed
First Union Corp. NC United Financial Corp. SC 127.4 759 195.00 19.90 Closed
Triangle Bancorp NC Village Bank NC 9.7 64 220.00 32.50 Closed
==========================================================================================================================
Average for the Year 1994 96.3 630.0 168.6 17.5
==========================================================================================================================
Carolina First Corp. SC Aiken County National SC 7.0 44.0 186.00 32.60 Closed
Triangle Bancorp NC Atlantic Community NC 19.9 163.6 135.24 NA Closed
United Carolina Bncs NC Bank of Iredell NC 16.0 79.3 240.17 20.13 Closed
Centura Banks NC Cleveland Federal NC 15.5 87.6 146.59 14.72 Closed
Triangle Bancorp NC Columbus Nat'l Bank NC 13.4 54.8 210.00 17.29 Closed
First Citizens BcShrs NC Edgecombe Homestead NC 10.9 38.9 154.41 20.72 Closed
Security Capital NC First FS & LA NC 41.0 354.7 143.00 17.20 Closed
Commonwealth Savings MS First FS&LA - Durham NC NA 68.1 NA NA Closed
First Citizens BcShrs NC First Investors SB NC 6.9 54.6 215.89 26.64 Closed
First Citizens BcShrs NC First Republic SB NC 10.9 59.2 186.20 10.93 Closed
Centura Banks NC First Southern Bncp NC 54.8 318.8 122.01 14.52 Closed
Mutual Community SB NC Greensboro NB NC 1.1 20.8 88.21 8.46 Closed
Carolina First Corp. SC Midlands National Bank SC 8.7 43.0 224.00 2.24 Closed
CCB Financial Corp NC Security Capital NC 235.4 914.1 183.35 16.44 Closed
BB&T Financial Corp NC Southern Nat'l Corp NC 1,111.0 8,236.4 138.16 9.82 Closed
Triangle Bancorp NC Standard Bank NC 14.6 77.5 191.45 33.87 Closed
First Citizens BcShrs NC State Bk-Fayetteville NC 11.9 54.4 186.14 24.74 Closed
American Fed. Bank SC United Financial of SC SC 58.5 671.0 116.00 9.50 Terminated
==========================================================================================================================
Average for the Year 1993 20.6 160.1 167.6 16.6
==========================================================================================================================
First Union Corp NC American Bancshares NC 20.7 242.2 127.09 15.03 Closed
First Citizens BcShrs NC Bank of Bladenboro NC 3.4 21.0 188.68 21.12 Closed
Triad Bank NC BTNC Corp NC NA 81.9 NA NA Closed
First Bancorp NC Central State Bank NC 7.0 35.6 201.90 25.18 Closed
Southern Bancshares NC Citizens Savings Bank NC 5.5 112.0 174.88 NA Closed
BB&T Financial Corp NC Citizens Savings Bank NC 38.2 276.8 189.29 10.47 Closed
Centura Banks NC First Charlotte Fncl NC 30.5 168.4 232.66 25.00 Closed
Security Capital NC First FS&LA NC 40.4 354.7 148.93 12.78 Closed
Southern Nat'l Corp NC Home Federal SB NC 18.2 102.8 218.91 11.54 Closed
United Carolina Bncs NC Home FSB-Eastern NC NC 21.0 122.1 187.23 15.87 Closed
Triangle Bancorp NC New East Bancorp NC 18.3 141.6 107.89 NA Closed
First Citizens BcShrs NC Pioneer Bancorp, Inc NC 3.6 325.7 47.73 NA Closed
Southern Nat'l Corp NC Regency Bancshares NC 50.4 279.0 199.61 19.41 Closed
Centura Banks NC Robeson Savings Bank NC 10.4 98.6 152.65 9.65 Closed
Anchor Fin'l Corp SC Topsail State Bank NC NA 38.9 NA NA Closed
- --------------------------------------------------------------------------------------------------------------------------
New Issue Discount
- ------------------
Typically, a "new issue" discount that encompasses investor concerns and
investment risks inherent in all initial stock offerings is a factor to be
considered in conversion valuations. The magnitude of the new issue discount
for conversions typically expands during periods of declining thrift stock
prices as investors require larger inducements and narrows during strong
markets.
A potential new issue discount must consider the after-market performance of
recent thrift offerings. Table 21 presents a summary of standard conversions
completed during each half of 1995 and conversions completed to date in 1996.
In 1995, improving market fundamentals, declining concerns over inflation, and
lower pro forma valuation ratios at the beginning of the year added momentum to
the conversion market. In the wake of Carver Federal's decline and the decline
in the overall thrift market, initial offering prices were driven back into the
general range of 55% to 60% of pro forma book value in early 1995. The pro
forma price/book ratio of 1995 conversions in the second half of 1995, however,
escalated to an average price-to-book ratio of 72.4% and a price-to-earnings
multiple of 19.0. This compares to the first half of 1995 average price-to-book
ratio of 66.6% and a price-to-earnings ratio of 16.2. There have been 49
conversions completed since the beginning of 1996, at an average price-to-book
ratio of 69.3% and a price-to-earnings ratio of 20.8.
Clearly, the support for new conversions has been strong. Based on discussions
with underwriters of recent transactions, it seems that once again the pricing
on the conversion market is peaking and investors are beginning to feel that
these issues are fully priced. This sentiment is being born out by the one-day
and one-week percentage change in stock prices, which in 1996 averaged 9.6% and
9.9%, respectively, compared to an average of 21.4% and 22.0%, respectively, in
the second half of 1995.
In North Carolina in 1996, excluding Wake Forest FS&LA, MHC, a mutual holding
company, there have been four conversions including Green Street Financial
Corp., Scotland Bancorp, Inc., Stone Street Bancorp, Inc., and Mitchell Bancorp,
Inc. The average price to book ratio is 72.2% and the average price to earnings
multiple is 36.3. This average is above the average of all deals for 1996.
Excluding the price to earnings multiple of Mitchell Bancorp, Inc. of 94.5, the
average price to earnings multiple for the remaining three North Carolina
conversions in 1996 is 16.9. The average one week percent change for the four
conversions is 18.4%. The Mitchell Bancorp transaction which closed in July 1996
was the lowest price to book ratio of each of the North Carolina conversions in
1996 at 68.1%. This is a further indication that the market for thrift
conversions during the month of July had weakened due to the overall stock
market conditions. Although the market has weakened, North Carolina thrifts
typically have outperformed other out of area thrifts, therefore, we believe an
upward adjustment should be made for the new issue discount.
Adjustments Conclusion
- ----------------------
We believe the Savings Bank's to-be-issued Common Stock should be discounted by
25% to 34% relative to the comparative group. We believe the discount is due, in
large part, to the new issue discount needed for a thrift stock offering. With
respect to the other factors discussed above, the overall discount is relatively
modest. Conversions are often priced at substantial discounts relative to the
price/book ratio but near the comparative price earnings ratio. It is the role
of the appraiser to balance the price/book and price/earning discounts and
premiums. In this instance, the pro forma price/earnings ratio should be placed
within the range of the comparative institutions.
Valuations Approach
- -------------------
Table 22 displays the market valuation characteristics of Richmond Savings and
the comparative group as of June 30, 1996. Exhibit V displays the pro forma
pricing worksheet for Richmond Savings.
We believe that investors continue to make decisions with respect to conversion
stock based upon price/book and price/earnings comparisons. The price/assets
ratio, we believe, is not currently accorded much weight by investors. Utilizing
a price/book discount of approximately 25% to 34% relative to the comparable
companies, the resulting pro forma ratio is 73% to 65%. The price/earnings ratio
should be within a range of 18 to 16 times recently reported earnings.
Based upon a 25% to 34% discount relative to the comparative group price/book
ratio, we believe the Savings Bank's pro forma standard conversion value is
$14.0 million. This provides for a pro forma price/book ratio of 69.28% at the
midpoint. The resulting price/earnings ratio based on the last twelve month's
earnings before extraordinary items was 18.3, and last quarter earnings was 20.5
at the midpoint. The range of pro forma price/book ratios was 64.6% to 73.2%,
and 77.0% at the adjusted maximum. The range of price/earnings ratios at the
minimum and the maximum was 18.2 to 22.7 based upon last quarter earnings and
16.1 to 20.3 based upon last twelve month earnings.
Valuation Conclusion
- --------------------
It is therefore our opinion that, as of August 8, 1996, the estimated pro forma
market value of the Savings Bank's to be issued Common Stock is $14,000,000. The
values range from $11,900,000 at the minimum to $16,100,000 at the maximum. The
resulting adjusted maximum above the maximum is $18,515,000.
40
- --------------------------------------------------------------------------------
TABLE 21
STANDARD CONVERSION - PUBLICLY TRADED
SELECTED MARKET DATA
1/1/95 to Date
IPO
Share Gross Conversion
Ticker Institution IPO Date Price$ Proceeds Assets
- ------ ----------- --------- ------- --------- --------
=============================================================================================
Average of Deals to Date in 1996 10.595 32,757 221,148
Average of Second Half 1995 Deals 9.981 42,404 229,647
Average of First Half 1995 Deals 9.581 19,150 182,895
=============================================================================================
Conversions to Date in 1996
- ---------------------------
LNXC Lenox Bancorp, Inc. 07/18/96 10.00 4,256 43,149
ANA Acadiana Bancshares, Inc. 07/16/96 12.00 32,775 225,248
PWBK Pennwood Savings Bank 07/15/96 10.00 6,101 41,592
MBSP Mitchell Bancorp, Inc. 07/12/96 10.00 9,799 28,222
ALGC Algiers Bancorp, Inc. 07/09/96 10.00 6,480 42,450
OCFC Ocean Financial Corp. 07/03/96 20.00 167,762 1,036,445
HWEN Home Financial Bancorp 07/02/96 10.00 5,059 33,462
EGLB Eagle BancGroup, Inc. 07/01/96 10.00 13,027 150,974
KNWP Kenwood Bancorp, Inc. 07/01/96 NA NA NA
FLKY First Lancaster Bancshares 07/01/96 10.00 9,588 35,361
PROV Provident Financial Holdings 06/28/96 10.00 51,252 570,691
WYNE Wayne Bancorp, Inc. 06/27/96 10.00 22,314 207,997
PRBC Prestige Bancorp, Inc. 06/27/96 10.00 9,630 91,841
MECH Mechanics Savings Bank 06/26/96 10.00 52,900 662,482
DIME Dime Community Bancorp, Inc. 06/26/96 10.00 145,475 665,187
CMSB Commonwealth Bancorp, Inc. 06/17/96 NA NA NA
CNSB CNS Bancorp, Inc. 06/12/96 10.00 16,531 85,390
WWFC Westwood Financial Corporation 06/07/96 NA NA NA
LXMO Lexington B&L Financial Corp. 06/06/96 10.00 12,650 49,981
FFFB First Federal Financial Bancrp 06/04/96 10.00 6,718 51,296
FFBH First Federal Bancshares of AR 05/03/96 10.00 51,538 454,479
NSGB North Cincinnati Savings Bank 05/01/96 10.00 3,968 56,637
CBK Citizens First Financial Corp. 05/01/96 10.00 28,175 227,872
RELI Reliance Bancshares, Inc. 04/19/96 8.00 20,499 32,260
YFCB Yonkers Financial Corporation 04/18/96 10.00 35,708 208,283
CATB Catskill Financial Corp. 04/18/96 10.00 56,868 230,102
GSFC Green Street Financial Corp. 04/04/96 10.00 42,981 151,028
FFDF FFD Financial Corp. 04/03/96 10.00 14,548 58,955
WAKE Wake Forest FS&LA, MHC 04/03/96 10.00 5,150 55,136
PATD Patapsco Bancorp, Inc. 04/02/96 20.00 7,251 77,144
SSB Scotland Bancorp, Inc 04/01/96 10.00 18,400 57,718
WHGB WHG Bancshares Corp. 04/01/96 10.00 16,201 85,027
SSM Stone Street Bancorp, Inc. 04/01/96 15.00 27,376 84,996
FBER 1st Bergen Bancorp 04/01/96 10.00 31,740 223,167
AMFC AMB Financial Corp. 04/01/96 10.00 11,241 68,851
PHFC Pittsburgh Home Financial Corp 04/01/96 10.00 21,821 157,570
JXVL Jacksonville Bancorp, Inc. 04/01/96 NA NA NA
LONF London Financial Corporation 04/01/96 10.00 5,290 34,152
PFFB PFF Bancorp, Inc. 03/29/96 10.00 198,375 1,899,412
CRZY Crazy Woman Creek Bancorp 03/29/96 10.00 10,580 37,510
FCB Falmouth Co-Operative Bank 03/28/96 10.00 14,548 73,735
GAF GA Financial, Inc. 03/26/96 10.00 89,000 476,259
CFTP Community Federal Bancorp 03/26/96 10.00 46,288 162,042
FFFD North Central Bancshares, Inc. 03/21/96 NA NA NA
WBIO Washington Bancorp 03/12/96 10.00 6,575 55,202
FFOH Fidelity Financial of Ohio 03/04/96 NA NA NA
BYFC Broadway Financial Corp. 01/09/96 10.00 8,927 102,512
LFBI Little Falls Bancorp, Inc. 01/05/96 10.00 30,418 196,394
FFBA First Colorado Bancorp, Inc. 01/02/96 NA NA NA
------------------------------------------------------------------
IPO Prior in Relative to Pro Forma Percent Change
----------------------------------------- --------------------
Ticker Institution IPO Date Book Value Tang. Book Earnings Assets One Day One Week
- ------ ----------- -------- ---------- ---------- -------- ------ --------- --------
==============================================================================================================================
Average of Deals to Date in 1996 69.25 69.25 20.79 44.88 9.56 9.25
Average of Second Half 1995 Deals 72.41 72.50 18.96 15.90 21.39 22.83
Average of First Half 1995 Deals 66.47 66.57 16.19 14.80 33.39 14.00
==============================================================================================================================
Conversions to Date in 1996
- ---------------------------
LNXC Lenox Bancorp, Inc. 07/18/96 58.2 58.190 29.2 9.0 -1.25 0.00
ANA Acadiana Bancshares, Inc. 07/16/96 69.9 69.920 NA 12.7 0.00 -2.08
PWBK Pennwood Savings Bank 07/15/96 65.8 65.759 13.3 12.8 -5.00 -8.75
MBSP Mitchell Bancorp, Inc. 07/12/96 68.1 68.129 94.5 25.8 0.00 6.25
ALGC Algiers Bancorp, Inc. 07/09/96 67.1 67.137 19.5 13.2 7.50 2.50
OCFC Ocean Financial Corp. 07/03/96 69.2 69.210 13.8 13.9 6.25 0.63
HWEN Home Financial Bancorp 07/02/96 66.2 66.227 12.4 13.1 2.50 -1.25
EGLB Eagle BancGroup, Inc. 07/01/96 57.1 57.114 58.1 7.9 12.50 12.50
KNWP Kenwood Bancorp, Inc. 07/01/96 NA NA NA NA NA NA
FLKY First Lancaster Bancshares 07/01/96 72.5 72.505 19.0 21.3 35.00 33.75
PROV Provident Financial Holdings 06/28/96 60.9 60.870 18.2 8.2 9.70 8.10
WYNE Wayne Bancorp, Inc. 06/27/96 60.9 60.935 16.7 9.7 11.25 13.75
PRBC Prestige Bancorp, Inc. 06/27/96 61.9 61.902 24.6 9.5 3.75 2.50
MECH Mechanics Savings Bank 06/26/96 72.0 71.957 NA 7.4 15.00 15.00
DIME Dime Community Bancorp, Inc. 06/26/96 69.1 69.157 15.7 17.9 16.87 20.00
CMSB Commonwealth Bancorp, Inc. 06/17/96 NA NA NA NA NA NA
CNSB CNS Bancorp, Inc. 06/12/96 69.3 69.350 26.1 16.2 10.00 16.25
WWFC Westwood Financial Corporation 06/07/96 NA NA NA NA NA NA
LXMO Lexington B&L Financial Corp. 06/06/96 69.1 69.095 14.4 20.2 -5.00 -2.50
FFFB First Federal Financial Bancrp 06/04/96 62.9 62.873 9.4 11.6 7.50 7.50
FFBH First Federal Bancshares of AR 05/03/96 63.4 63.391 9.8 10.2 30.00 32.50
NSGB North Cincinnati Savings Bank 05/01/96 65.0 65.025 NA 6.5 2.50 10.00
CBK Citizens First Financial Corp. 05/01/96 73.1 73.104 15.3 11.0 5.00 0.00
RELI Reliance Bancshares, Inc. 04/19/96 72.5 72.473 22.5 38.9 4.69 3.13
YFCB Yonkers Financial Corporation 04/18/96 74.9 74.930 16.1 14.6 -2.50 1.25
CATB Catskill Financial Corp. 04/18/96 71.9 71.876 19.0 19.8 3.75 6.25
GSFC Green Street Financial Corp. 04/04/96 71.0 71.029 14.8 22.2 28.75 22.50
FFDF FFD Financial Corp. 04/03/96 69.9 69.871 17.4 19.8 5.00 5.00
WAKE Wake Forest FS&LA, MHC 04/03/96 104.1 104.054 14.5 8.5 27.50 16.90
PATD Patapsco Bancorp, Inc. 04/02/96 60.0 60.020 16.6 8.6 10.00 12.50
SSB Scotland Bancorp, Inc 04/01/96 74.8 74.830 16.2 24.2 22.50 25.00
WHGB WHG Bancshares Corp. 04/01/96 71.1 71.081 15.5 16.0 11.25 10.60
SSM Stone Street Bancorp, Inc. 04/01/96 74.9 74.920 19.7 24.4 16.67 20.00
FBER 1st Bergen Bancorp 04/01/96 74.8 74.813 21.7 12.5 0.00 -5.00
AMFC AMB Financial Corp. 04/01/96 70.8 70.828 18.2 14.0 5.00 5.00
PHFC Pittsburgh Home Financial Corp 04/01/96 72.8 72.827 17.5 12.2 10.00 10.00
JXVL Jacksonville Bancorp, Inc. 04/01/96 NA NA NA NA NA NA
LONF London Financial Corporation 04/01/96 68.5 68.461 22.4 13.4 8.12 6.25
PFFB PFF Bancorp, Inc. 03/29/96 69.0 68.991 26.6 9.5 13.75 16.25
CRZY Crazy Woman Creek Bancorp 03/29/96 69.7 69.720 16.4 22.0 0.00 7.50
FCB Falmouth Co-Operative Bank 03/28/96 68.7 68.722 19.9 16.5 7.50 12.50
GAF GA Financial, Inc. 03/26/96 70.5 70.521 13.8 15.7 13.75 15.00
CFTP Community Federal Bancorp 03/26/96 71.4 71.353 14.0 22.2 26.25 28.75
FFFD North Central Bancshares, Inc. 03/21/96 NA NA NA NA NA NA
WBIO Washington Bancorp 03/12/96 65.4 65.417 12.7 10.6 8.75 11.25
FFOH Fidelity Financial of Ohio 03/04/96 NA NA NA NA NA NA
BYFC Broadway Financial Corp. 01/09/96 68.5 68.479 13.3 8.0 3.75 2.50
LFBI Little Falls Bancorp, Inc. 01/05/96 71.4 71.425 31.9 13.4 13.13 13.75
FFBA First Colorado Bancorp, Inc. 01/02/96 NA NA NA NA NA NA
- -----------------------------------------------------------------------------------------------------------------------------
TABLE 21
STANDARD CONVERSION - PUBLICLY TRADED
SELECTED MARKET DATA
1/1/95 to Date
IPO
Share Gross Conversion
Ticker Institution IPO Date Price $ Proceeds Assets
- ------ ------------ -------- -------- --------- ------
Average of Deals to Date in 1996 10.595 32,757 221,148
Average of Second Half 1995 Deals 9.981 42,404 229,647
Average of First Half 1995 Deals 9.581 19,150 182,895
Second Half 1995 Conversions
- -----------------------------
PEEK Peekskill Financial Corp. 12/29/95 10.000 40,998 155,716
CBSB Charter Financial, Inc. 12/29/95 NA NA NA
CLAS Classic Bancshares, Inc. 12/29/95 10.000 13,225 60,911
HFNC HFNC Financial Corp. 12/29/95 10.000 171,925 591,319
JOAC Joachim Bancorp, Inc. 12/28/95 10.000 7,604 30,711
AHCI Ambanc Holding Co., Inc. 12/27/95 10.000 54,223 344,856
PDB Piedmont Bancorp, Inc. 12/08/95 10.000 26,450 95,094
PBIX Patriot Bank Corp. 12/04/95 10.000 37,691 229,300
FFIC Flushing Financial Corp. 11/21/95 11.500 99,188 604,230
FWWB First SB of Washington Bancorp 11/01/95 10.000 109,106 491,368
ANBK American National Bancorp 10/31/95 NA NA NA
BFD BostonFed Bancorp, Inc. 10/24/95 10.000 66,125 592,027
CSBF CSB Financial Group, Inc. 10/09/95 8.000 8,280 34,431
SRN Southern Banc Company, Inc. 10/05/95 10.000 14,548 100,564
TPNZ Tappan Zee Financial, Inc. 10/05/95 10.000 16,201 91,149
KFBI Klamath First Bancorp 10/05/95 10.000 122,331 455,111
HFFB Harrodsburg First Fin Bancorp 10/04/95 10.000 21,821 92,715
SFIN Statewide Financial Corp. 10/02/95 10.000 52,698 475,168
DFIN Damen Financial Corp. 10/02/95 10.000 39,675 191,500
FDEF First Defiance Financial 10/02/95 NA NA NA
HFSA Hardin Bancorp, Inc. 09/29/95 10.000 10,580 75,993
KYF Kentucky First Bancorp, Inc. 08/29/95 10.000 13,886 63,014
THR Three Rivers Financial Corp. 08/24/95 10.000 8,596 72,377
TSBS Trenton SB, MHC 08/03/95 10.000 31,165 445,944
INBI Industrial Bancorp 08/01/95 10.000 55,545 268,041
CZF CitiSave Financial Corp. 07/14/95 10.000 9,647 69,125
CCFH CCF Holding Corp. 07/12/95 10.000 11,903 69,080
FKKY Frankfort First Bancorp, Inc. 07/10/95 10.000 34,500 110,135
FTF Texarkana First Financial Corp. 07/07/95 10.000 19,838 140,178
FMBD First Mutual Bancorp, Inc. 07/05/95 10.000 47,150 250,402
----------------------------------------------- ------------------
IPO Price in Relation to Pro Forma Percent Change
----------------------------------------------- ------------------
Ticker Institution IPO Date Book Value Tang. Book Earnings Assets One Day One Week
- ------ ----------- -------- ---------- ---------- -------- ------ ------- --------
Average of Deals to Date in 1996 69.25 69.25 20.79 14.88 9.56 9.85
Average of Second Half 1995 Deals 72.41 72.50 18.98 15.96 21.39 22.03
Average of First Half 1995 Deals 66.47 66.57 16.19 10.80 13.39 14.48
PEEK Peekskill Financial Corp. 12/29/95 70.80 70.81 14.10 20.80 21.25 17.50
CBSB Charter Financial, Inc. 12/29/95 NA NA NA NA NA NA
CLAS Classic Bancshares, Inc. 12/29/95 69.30 69.29 17.20 17.80 17.50 17.50
HFNC HFNC Financial Corp. 12/29/95 71.20 71.22 15.80 22.50 31.25 33.75
JOAC Joachim Bancorp, Inc. 12/28/95 72.00 71.99 18.80 19.80 35.00 30.00
AHCI Ambanc Holding Co., Inc. 12/27/95 72.00 72.05 22.10 13.60 0.00 3.10
PDB Piedmont Bancorp, Inc. 12/08/95 71.50 71.50 14.10 21.80 NA 28.75
PBIX Patriot Bank Corp. 12/04/95 71.00 70.99 18.00 14.10 27.50 27.50
FFIC Flushing Financial Corp. 11/21/95 73.20 73.21 35.80 14.10 23.64 22.83
FWWB First SB of Washington Bancorp 11/01/95 73.10 73.08 13.70 18.20 24.40 26.90
ANBK American National Bancorp 10/31/95 NA NA NA NA NA NA
BFD BostonFed Bancorp, Inc. 10/24/95 74.50 74.54 93.10 10.00 20.00 20.00
CSBF CSB Financial Group, Inc. 10/09/95 66.50 66.50 14.30 19.40 12.50 15.63
SRN Southern Banc Company, Inc. 10/05/95 66.10 67.06 30.10 12.60 23.75 25.00
TPNZ Tappan Zee Financial, Inc. 10/05/95 74.00 74.39 12.30 15.10 16.25 15.00
KFBI Klamath First Bancorp 10/05/95 75.50 75.55 13.40 21.20 25.00 28.75
HFFB Harrodsburg First Fin Bancorp 10/04/95 73.70 73.72 14.00 19.10 25.00 23.75
SFIN Statewide Financial Corp. 10/02/95 76.40 76.67 9.40 10.00 32.50 31.25
DFIN Damen Financial Corp. 10/02/95 73.00 73.02 36.80 17.20 15.00 13.75
FDEF First Defiance Financial 10/02/95 NA NA NA NA NA NA
HFSA Hardin Bancorp, Inc. 09/29/95 67.80 67.84 16.40 12.20 21.88 22.50
KYF Kentucky First Bancorp, Inc. 08/29/95 72.00 71.95 15.50 18.10 20.00 25.00
THR Three Rivers Financial Corp. 08/24/95 71.00 71.71 9.80 10.60 13.75 17.50
TSBS Trenton SB, MHC 08/03/95 103.50 103.53 10.70 6.50 15.63 17.50
INBI Industrial Bancorp 08/01/95 71.90 71.90 9.40 17.20 21.25 25.63
CZF CitiSave Financial Corp. 07/14/95 70.90 70.87 12.50 12.20 35.00 30.00
CCFH CCF Holding Corp. 07/12/95 71.80 71.79 11.80 14.70 15.63 7.50
FKKY Frankfort First Bancorp, Inc. 07/10/95 70.50 70.49 14.30 23.90 22.50 20.63
FTF Texarkana First Financial Corp. 07/07/95 64.50 64.50 6.00 12.40 28.75 31.25
FMBD First Mutual Bancorp, Inc. 07/05/95 67.50 67.49 13.10 15.80 11.25 16.25
TABLE 21
STANDARD CONVERSION - PUBLICLY TRADED
SELECTED MARKET DATA
1/1/95 to Date
IPO
Share Gross Conversion
Ticker Institution IPO Date Price $ Proceeds Assets
- ------ ----------- -------- ------- -------- -------
Average of Deals to Date in 1996 10.595 32,757 221,148
Average of Second Half 1995 Deals 9.981 42,404 229,647
Average of First Half 1995 Deals 9.581 19,150 182,895
First Half 1995 Conversions
- ---------------------------
GUPB GFSB Bancorp, Inc. 06/30/95 10.000 9,488 43,949
SFED SFS Bancorp, Inc. 06/30/95 10.000 14,950 150,837
HEMT HF Bancorp, Inc. 06/30/95 8.000 52,900 586,553
GTPS Great American Bancorp 06/30/95 10.000 20,528 105,832
FBBC First Bell Bancorp, Inc. 06/29/95 10.000 85,963 406,813
SGVB SGV Bancorp, Inc. 06/29/95 8.000 21,821 259,462
FTSB Fort Thomas Financial Corp 06/28/95 10.000 15,738 70,577
NEIB Northeast Indiana Bancorp 06/28/95 10.000 21,821 114,976
LOGN Logansport Financial Corp. 06/14/95 10.000 13,225 59,351
NSLB NS&L Bancorp, Inc. 06/08/95 10.000 8,564 50,995
ASBP ASB Financial Corp. 05/11/95 10.000 15,870 93,931
JXSB Jacksonville Savings Bank, MHC 04/21/95 10.000 5,575 137,527
TSH Teche Holding Co. 04/19/95 10.000 42,320 284,570
WEFC Wells Financial Corp 04/11/95 8.000 17,504 180,405
CBIN Community Bank Shares 04/10/95 NA NA NA
GFED Guaranty Federal SB, MHC 04/10/95 8.000 7,779 158,850
ISBF ISB Financial Corporation 04/07/95 10.000 74,000 480,293
AVND Avondale Financial Corp. 04/07/95 10.000 42,320 502,065
FSBS First Ashland Financial Corp 04/07/95 10.000 14,088 75,135
BDJI First Federal Bancorporation 04/04/95 10.000 8,625 87,256
CMRN Cameron Financial Corp 04/03/95 10.000 30,269 144,821
QCFB QCF Bancorp, Inc. 04/03/95 10.000 17,828 133,135
SOBI Sobieski Bancorp, Inc. 03/31/95 10.000 9,660 73,397
BWFC Bank West Financial Corp 03/30/95 8.000 18,515 108,056
HBFW Home Bancorp 03/30/95 10.000 33,032 275,210
ATSB AmTrust Capital Corp 03/28/95 8.000 4,641 58,644
MIVI Mississippi View Holding Co. 03/24/95 8.000 8,064 62,887
GDVS Greater Delaware Valley SB,MHC 03/03/95 10.000 6,500 225,545
SJSB SJS Bancorp 02/16/95 10.000 9,522 118,719
MBBC Monterey Bay Bancorp, Inc. 02/15/95 8.000 28,750 284,578
SZB SouthFirst Bancshares, Inc. 02/14/95 10.000 8,300 82,477
PCBC Perry County Financial Corp. 02/13/95 10.000 8,565 69,914
HBBI Home Building Bancorp 02/08/95 10.000 3,220 40,816
SISB SIS Bank 02/08/95 8.000 44,500 929,900
CIBI Community Investors Bancorp 02/07/95 10.000 7,381 75,915
MSBF MSB Financial, Inc. 02/06/95 10.000 7,220 46,838
LSBI LSB Financial Corp. 02/03/95 10.000 10,296 117,723
MFSB Mutual Bancompany 02/02/95 10.000 3,335 54,095
FKFS First Keystone Financial 01/26/95 10.000 13,600 237,011
FOBC Fed One Bancorp 01/19/95 NA NA NA
GWBC Gateway Bancorp, Inc. 01/18/95 10.000 12,446 67,128
ETFS East Texas Financial Services 01/10/95 10.000 12,152 114,935
FSNJ First Savings Bk of NJ, MHC 01/09/95 10.000 13,580 547,550
CKFB CKF Bancorp, Inc. 01/04/95 10.000 10,000 51,002
TWIN Twin City Bancorp 01/04/95 10.000 8,984 94,826
- ------------------------------------------------------------------------------------------
IPO Price in Relation to Pro Forma Percent Change
---------------------------------------- ---------------------
Ticker Institution IPO Date Book Value Tang. Book Earnings Assets One Day One Week
- ------ ----------- -------- ---------- ---------- -------- -------- ---------- ----------
Average of Deals to Date in 1996 69.25 69.25 20.79 14.88 9.56 9.8
Average of Second Half 1995 Deals 72.41 72.50 18.98 15.96 21.39 22.03
Average of First Half 1995 Deals 66.47 66.57 16.19 10.80 13.39 14.48
GUPB GFSB Bancorp, Inc. 06/30/95 62.50 62.48 13.30 17.80 35.00 28.75
SFED SFS Bancorp, Inc. 06/30/95 64.70 64.71 14.20 9.00 15.00 13.75
HEMT HF Bancorp, Inc. 06/30/95 61.20 61.23 27.00 8.30 3.13 6.25
GTPS Great American Bancorp 06/30/95 61.30 61.35 17.40 16.20 22.50 23.75
FBBC First Bell Bancorp, Inc. 06/29/95 77.20 77.19 9.40 17.40 21.25 21.25
SGVB SGV Bancorp, Inc. 06/29/95 66.20 66.18 28.60 7.80 1.56 0.00
FTSB Fort Thomas Financial Corp 06/28/95 74.00 73.95 14.90 18.20 21.25 22.50
NEIB Northeast Indiana Bancorp 06/28/95 73.40 73.38 9.80 16.00 15.00 15.00
LOGN Logansport Financial Corp. 06/14/95 67.70 67.74 9.50 18.20 18.75 18.75
NSLB NS&L Bancorp, Inc. 06/08/95 64.00 64.05 12.20 14.40 23.75 22.50
ASBP ASB Financial Corp. 05/11/95 66.50 66.52 14.80 14.50 25.00 21.25
JXSB Jacksonville Savings Bank, MHC 04/21/95 76.50 76.51 158.90 3.90 0.00 0.00
TSH Teche Holding Co. 04/19/95 72.00 71.98 8.30 12.90 16.25 13.75
WEFC Wells Financial Corp 04/11/95 65.50 65.51 9.50 8.80 12.50 13.25
CBIN Community Bank Shares 04/10/95 NA NA NA NA NA NA
GFED Guaranty Federal SB, MHC 04/10/95 106.00 105.97 14.90 4.70 6.25 17.19
ISBF ISB Financial Corporation 04/07/95 66.90 67.00 9.40 13.40 29.38 34.40
AVND Avondale Financial Corp. 04/07/95 69.60 69.64 10.20 7.80 15.00 21.25
FSBS First Ashland Financial Corp 04/07/95 62.30 62.34 13.90 15.80 25.00 32.50
BDJI First Federal Bancorporation 04/04/95 62.20 62.17 10.50 9.00 7.50 7.50
CMRN Cameron Financial Corp 04/03/95 65.60 65.64 12.70 17.30 7.50 7.50
QCFB QCF Bancorp, Inc. 04/03/95 60.40 60.37 11.90 11.80 14.38 12.50
SOBI Sobieski Bancorp, Inc. 03/31/95 69.10 69.14 9.90 11.60 2.50 0.60
BWFC Bank West Financial Corp 03/30/95 66.80 66.81 14.00 14.60 9.38 8.63
HBFW Home Bancorp 03/30/95 64.20 64.17 10.60 10.70 25.00 25.60
ATSB AmTrust Capital Corp 03/28/95 62.30 62.35 7.70 7.30 6.25 3.13
MIVI Mississippi View Holding Co. 03/24/95 63.00 62.99 11.10 11.40 11.73 7.81
GDVS Greater Delaware Valley SB,MHC 03/03/95 115.50 115.51 17.70 2.80 5.00 -3.75
SJSB SJS Bancorp 02/16/95 59.20 59.18 12.30 7.40 10.00 15.00
MBBC Monterey Bay Bancorp, Inc. 02/15/95 59.30 60.73 13.30 9.20 10.94 10.94
SZB SouthFirst Bancshares, Inc. 02/14/95 58.90 58.86 14.10 9.10 15.00 8.75
PCBC Perry County Financial Corp. 02/13/95 57.50 57.52 8.90 10.90 23.75 35.00
HBBI Home Building Bancorp 02/08/95 57.20 57.18 7.60 7.30 0.00 15.00
SISB SIS Bank 02/08/95 64.70 66.13 NA 4.60 20.31 26.56
CIBI Community Investors Bancorp 02/07/95 63.90 63.86 8.40 8.90 7.50 22.50
MSBF MSB Financial, Inc. 02/06/95 58.60 58.65 11.50 13.40 10.00 11.25
LSBI LSB Financial Corp. 02/03/95 60.90 60.91 12.70 8.00 12.50 12.50
MFSB Mutual Bancompany 02/02/95 55.50 56.89 9.10 5.80 5.00 3.10
FKFS First Keystone Financial 01/26/95 58.30 58.26 23.40 5.40 3.75 5.00
FOBC Fed One Bancorp 01/19/95 NA NA NA NA NA NA
GWBC Gateway Bancorp, Inc. 01/18/95 60.10 60.06 12.10 15.60 12.50 12.50
ETFS East Texas Financial Services 01/10/95 55.00 55.02 NA 9.60 11.25 18.75
FSNJ First Savings Bk of NJ, MHC 01/09/95 67.20 67.17 6.70 2.40 10.00 7.50
CKFB CKF Bancorp, Inc. 01/04/95 66.10 66.06 11.10 16.40 17.50 17.50
TWIN Twin City Bancorp 01/04/95 69.00 69.00 10.40 8.70 10.00 5.00
- -----------------------------------------------------------------------------------------------------------------------
Source: SNL Securities, L.P.
Adjustments Conclusion
- ----------------------
We believe the Savings Bank's to-be-issued Common Stock should be discounted by
25% to 34% relative to the comparative group. We believe the discount is due,
in large part, to the new issue discount needed for a thrift stock offering.
With respect to the other factors discussed above, the overall discount is
relatively modest. Conversions are often priced at substantial discounts
relative to the price/book ratio but near the comparative price earnings ratio.
It is the role of the appraiser to balance the price/book and price/earning
discounts and premiums. In this instance, the pro forma price/earnings ratio
should be placed within the range of the comparative institutions.
Valuation Approach
- ------------------
Table 22 displays the market valuation characteristics of Richmond Savings and
the comparative group as of June 30, 1996. Exhibit V displays the pro forma
pricing worksheet for Richmond Savings.
We believe that investors continue to make decisions with respect to conversion
stock based upon price/book and price/earnings comparisons. The price/assets
ratio, we believe, is not currently accorded much weight by investors.
Utilizing a price/book discount of approximately 25% to 34% relative to the
comparable companies, the resulting pro forma ratio is 73% to 65%. The
price/earnings ratio should be within a range of 18 to 16 times recently
reported earnings.
Based upon a 25% to 34% discount relative to the comparative group price/book
ratio, we believe the Savings Bank's pro forma standard conversion value is
$14.0 million. This provides for a pro forma price/book ratio of 69.28% at the
midpoint. The resulting price/earnings ratio based on the last twelve months'
earnings before extraordinary items was 18.3, and last quarter earnings was 20.5
at the midpoint. The range of pro forma price/book ratios was 64.6% to 73.2%,
and 77.0% at the adjusted maximum. The range of price/earnings ratios at the
minimum and the maximum was 18.2 to 22.7 based upon last quarter earnings and
16.1 to 20.3 based upon last twelve months earnings.
Valuation Conclusion
- --------------------
It is therefore our opinion that, as of August 8, 1996, the estimated pro forma
market value of the Savings Bank's to be issued Common Stock is $14,000,000.
The values range from $11,900,000 at the minimum to $16,100,000 at the maximum.
The resulting adjusted maximum above the maximum is $18,515,000.
41
TABLE 22
TRADING COMPARISONS
RICHMOND SAVINGS BANK AND THE COMPARATIVE GROUP
AS OF JUNE 30, 1996
Current Current Current Price (August 8, 1996) in Relation to
Stock Market ------------------------------------------------------
Price Value Book Value Tg Bk Value Assets QTR EPS LTM EPS
Ticker Institution ($) ($M) (%) (%) (%) (x) (x)
- ------ ----------- --- ---- --- --- --- --- ---
====================================================================================================================
RICHMOND SAVINGS (as of 6/30/96):
PRO FORMA MINIMUM 10.00 11.90 64.61 64.61 11.45 18.20 16.10
PRO FORMA MIDPOINT 10.00 14.00 69.28 69.28 13.25 20.50 18.30
PRO FORMA MAXIMUM 10.00 16.10 73.20 73.20 14.98 22.70 20.30
PRO FORMA MAXIMUM, Adjusted 10.00 18.52 76.98 76.98 16.91 24.90 22.40
====================================================================================================================
Comparative Group:
Maximum 20.00 66.46 113.00 113.00 30.74 106.25 106.25
Minimum 12.25 10.69 82.36 82.36 12.26 11.18 11.18
Average 15.30 24.05 97.52 97.53 20.40 27.25 24.53
Median 14.50 19.70 97.55 97.55 20.39 16.38 14.23
ASBP ASB Financial Corp. 14.75 25.28 98.07 98.07 22.63 26.34 26.34
BFSB Bedford Bancshares, Inc. 17.00 19.74 100.24 100.24 16.21 11.18 11.18
FFWD Wood Bancorp, Inc. 12.75 19.66 97.03 97.03 14.07 12.26 12.26
FSBS First Ashland Financial Corp 18.25 26.70 113.00 113.00 30.74 26.84 26.84
FSVF First Savings Financial Corp 12.25 10.69 99.76 99.76 18.18 NM NM
HSSC Home Savings Bank of Siler Cty 14.25 12.77 95.32 95.32 22.61 16.19 16.19
KSAV KS Bancorp, Inc. 20.00 13.27 95.88 95.97 14.19 11.90 11.90
PDB Piedmont Bancorp, Inc. 13.25 35.05 94.58 94.58 27.23 16.56 16.56
SOPN First Savings Bancorp, Inc. 17.75 66.46 98.94 98.94 25.93 17.75 17.75
SZB SouthFirst Bancshares, Inc. 12.75 10.90 82.36 82.36 12.26 106.25 106.25
Current Tangible Qtr Qtr LTM LTM
Dividend Equity/ Equity/ Return on Return on Return on Return on
Yield Assets Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Ticker Institution (%) (%) (%) (%) (%) (%) (%)
- ------ ----------- --- --- --- --- --- --- ---
=====================================================================================================================
RICHMOND SAVINGS (as of 6/30/96):
PRO FORMA MINIMUM 2.50 17.89 17.89 0.70 3.94 0.83 4.66
PRO FORMA MIDPOINT 2.50 19.33 19.33 0.71 3.86 0.84 4.55
PRO FORMA MAXIMUM 2.50 20.73 20.73 0.72 3.63 0.85 4.26
PRO FORMA MAXIMUM, Adjusted 2.50 22.27 22.27 0.73 3.43 0.85 4.01
=====================================================================================================================
Comparative Group:
Maximum 3.92 29.77 29.77 1.63 9.12 1.48 8.14
Minimum 0.00 14.60 14.60 (0.24) (1.29) 0.08 0.48
Average 2.09 20.77 20.77 1.02 4.96 1.00 5.30
Median 2.53 20.65 20.65 1.21 5.61 1.11 5.68
ASBP ASB Financial Corp. 2.71 23.08 23.08 0.83 3.50 1.02 4.52
BFSB Bedford Bancshares, Inc. 2.35 15.22 15.22 1.42 9.12 1.29 7.96
FFWD Wood Bancorp, Inc. 1.88 14.60 14.60 1.15 7.95 1.17 8.14
FSBS First Ashland Financial Corp 0.00 27.21 27.21 1.02 3.80 0.96 3.61
FSVF First Savings Financial Corp 0.00 18.22 18.22 (0.24) (1.29) 0.08 0.48
HSSC Home Savings Bank of Siler Cty 0.00 23.72 23.72 1.44 6.00 NA NA
KSAV KS Bancorp, Inc. 3.00 14.79 14.78 1.27 8.51 1.11 6.88
PDB Piedmont Bancorp, Inc. 3.62 29.77 29.77 1.63 5.39 1.35 7.23
SOPN First Savings Bancorp, Inc. 3.38 26.21 26.21 1.52 5.83 1.48 5.68
SZB SouthFirst Bancshares, Inc. 3.92 14.89 14.89 0.12 0.75 0.55 3.24
Source: SNL Securities, L.P.
================================================================================
===============================================================
BAXTER
FENTRISS
AND COMPANY
===============================================================
MISSION: Baxter Fentriss and Company provides innovative
solutions, experience and leadership to financial
institutions pursuing major strategic objectives.
AREAS OF EXPERTISE:
. Strategy development to maximize shareholder value
. Merger and acquisition transactions
. Business valuations
. Private placement of debt or equity
. Hostile takeover preparation/defense
. Capital planning
. Fairness opinions
. Employee stock ownership plans
. Asset acquisition searches
. Mutual conversions
. Resolution Trust Corporation transactions
. Buy/sell agreements
. Branch Sales and purchases
===============================================================================
Baxter Fentriss & Company
===============================================================================
UNIQUE QUALIFICATIONS OF
BAXTER FENTRISS AND COMPANY
. BFC is especially qualified to develop, evaluate, and execute major
strategies.
. Principals managed strategic planning function for
a major Regional Bank, achieving over $4 billion in
asset growth through 29 acquisitions.
. Principals formed two nationally ranked investment
banking firms specializing in financial
institutions since 1983.
. Strategic advisor for over 100 thrifts and banks
since 1991.
. BFC has significant M & A experience.
. Ranked 3rd in total 1994 transactions
. Over 50 years of combined M & A experience.
. 200 plus successful transactions.
. Wide breadth of skill, experience, and training.
. Nationally recognized professionals.
. BFC is particularly qualified to execute transactions.
. Principals have directly acquired over 30
companies.
. Firm enjoys exceptional relationships with bank and
thrift acquirors.
. BFC fully understands acquiror strategies/
motivations.
. BFC is recognized Nationally as a result of its publishing
capabilities.
. Principals author articles for national
publications.
. Baxter Fentriss publishes The CEO Report.
===============================================================================
Baxter Fentriss & Company
===============================================================================
UNIQUE QUALIFICATIONS OF
BAXTER FENTRISS AND COMPANY
(CONTINUED)
. BFC enjoys excellent reputation throughout Southeast.
. Firm stresses honesty and fairness in
transactions.
. Long list of referrals.
. Exceptional success rate.
. BFC is not "wed" to one institution.
. Reputation for fairness.
. No reluctance by Acquiror's to bid.
. Reputation for quality.
. BFC brings multiple alternatives to a
transaction.
. BFC has demonstrated creativity that has been adopted nationally.
. Principals developed a "consortium" bid
concept used in most RTC transactions.
. BFC has developed two unique strategies
for mutual institutions.
. BFC specializes in demonstrating to
potential acquirors how they can
materially improve the terms/structure of
their bids.
. BFC has extensive capabilities in the placement of financings.
. Network of hundreds of investors and
financiers.
. Significant experience with financial
institutions in difficult financings.
================================================================================
Baxter Fentriss & Company
================================================================================
UNIQUE QUALIFICATIONS OF
BAXTER FENTRISS AND COMPANY
(CONTINUED)
. BFC has unique expertise in Financial Institution transactions in the
Southeastern markets.
. Largest number of community financial
institution transactions in the market.
. Reputation for success in transactions
with highest degree of difficulty.
. Involved in over $7 billion in deposit
transfers in the market.
. Recognized by acquirors in prioritizing
transactions.
================================================================================
Baxter Fentriss & Company
===============================================================================
BAXTER FENTRISS AND COMPANY
PRINCIPALS OF THE FIRM:
Laurence C. Fentriss (804) 323-1405
Prior to co-founding the company, Larry was managing director
of Crestar Financial Corporation's merger and acquisition
division. From 1979 to 1992, he developed Crestar's merger and
acquisition strategy. Larry has successfully completed over 25
major transactions for Crestar, acquiring assets exceeding $4.5
Billion.
Larry also created and managed Crestar's merger and acquisition
advisory division, a group of nine professionals who have
successfully completed several hundred valuation, merger,
acquisition, divestiture, and financing transactions for Crestar
customers.
Larry graduated from the University of Virginia with a B.S. in
finance and with honors. He also received a Masters in Business
Administration, with honors, from Virginia Commonwealth
University. Larry also graduated, with honors, from the
Graduate School of Banking at Louisiana State University.
James E. Baxter, II (804) 323-1306
Prior to co-founding the company, Jim worked for Crestar
Financial Corporation's merger and acquisition division as the
Director of Financial Institutions. He was responsible for the
development of the nationally ranked advisory division. He has
been involved in the purchase or sale of several billion dollars
in assets of both healthy and failed institutions.
Jim received the Gold Medal for achieving the highest score in
the State of Virginia on the 1983 Certified Public Accountants
examination. He also served as a senior auditor for Ernst and
Young and is a member of both the American and Virginia
Societies of CPAs.
Jim graduated Summa Cum Laude in accounting at Virginia
Commonwealth University. He also graduated first in the School
of Business.
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS AND COMPANY
PROFESSIONALS OF THE FIRM:
David C. Burns (804) 323-7541
Prior to joining Baxter Fentriss and Company, David spent 4-1/2
years as Vice President with Goldman Sachs and Company in New
York. He was responsible for private companies in the Southeast
seeking equity and/or debt financing, developing cash management
instruments and $8 billion in structured secondary debt.
From 1985 to 1988, David was President of Rapid Systems, Inc.,
a retail chain in Nashville, Tennessee. Prior to Rapid Systems,
he was Senior Auditor for Ernst & Young and Company, in
Richmond, Virginia, where his primary focus was in the banking,
manufacturing and insurance industries.
David graduated from the University of Tennesee, cum laude,
with a B.S. in accounting. David also holds a Master of
Business Administration from Vanderbilt University's Graduate
School of Business and is a Certified Public Accountant.
C. M. (Kay) Carpenter (804) 323-7540
Kay is a former Executive Vice President of Crestar Bank. He
was responsible for managing the integration of many of
Crestar's acquisitions during the 1970's and 1980's. He also
managed the downsizing efforts in the Western region and has
served on numerous local advisory boards.
Kay graduated from the Executive Program at the Darden School
in Charlottesville, Virginia and the Stonier Graduate School of
Banking at Rutgers.
Donald R. Draughon, Jr. (919) 471-0340
Don is a former senior financial analyst and project manager
for Montrose Capital. He has previously served on the Board of
Directors for the Pantry, Inc., and Nationwide Industries. He
also was a Vice President of D.C. Land Group and project manager
for Robert Trent Jones Golf Club in Washington D.C.
Don spent five years with Wachovia Bank and Trust in
Winston-Salem, North Carolina in the corporate finance group.
He was the product manager/specialist for industrial revenue
bond financing, interest rate swaps, and private placements.
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS AND COMPANY
PROFESSIONALS OF THE FIRM-con't:
Don received a Bachelor of Arts in 1982 from Brigham Young
University in Provo, Utah and a Masters in Business
Administration in 1984 from Wake Forest University's Babcock
School of Management in Winston-Salem, North Carolina.
Rodney W. Martin (804) 323-7113
Before joining the firm, Rodney was employed with Crestar
Financial Corporation as a Balance Sheet Management Officer.
During this time, Rodney's responsibilities included measuring
and managing interest rate sensitivity, forecasting the earnings
stream of the balance sheet, managing the balance sheet and
capital structure at the parent company level, and assisting in
merger and acquisition analysis.
Prior to his employment with Crestar, Rodney was a Financial
Analyst with Virginia State Corporation Commission where he
provided independent financial analysis and testimony in Public
Utility Rate Case Hearings and conducted financial research for
the Commission. Rodney has also worked with Central Fidelity
Banks, Inc. as a Credit/Loan Review Analyst.
Rodney graduated from Virginia Commonwealth University with a
Masters in Finance and a Bachelors in Finance and Economics.
Rodney has also received training in all phases of the brokerage
business and passed the NASD Series 7 and State's Series 63
securities exams.
Brian L. Johnson (804) 323-7540
Before joining Baxter Fentriss and Company, Brian was a retail
mortgage loan originator with Household Bank in Alexandria, VA.
He was responsible for developing business with builders,
realtors, and bank clientele as well as administering CRA
activities in the Alexandria area. Brian was also a leading
loan producer in 1993, closing approximately $10 million in
mortgage loans. Prior to working with Household Bank, he worked
as a bank examiner with the Bureau of Financial Institutions in
Virginia.
Brian graduated from James Madison University with a B.B.A. in
Finance. He completed his Master of Business Administration in
Finance at Virginia Commonwealth University in December of 1995.
Brian has also had experience as a securities broker and has
held the NASD Series 7 and State's Series 63 licenses.
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS AND COMPANY
PROFESSIONALS OF THE FIRM-con't:
Kristi Briggs (804) 323-9332
Prior to joining the firm, Kristi was an internal auditor in Crestar Financial
Corporation's Commercial Audit Division. During this time, Kristi conducted and
assisted in the completion of audits to evaluate the adequacy, effectiveness,
and efficiency of the systems of internal control within Crestar Bank. She also
participated in the completion of other special projects assigned to the Audit
Department.
Before joining Crestar, Kristi spent more than three years as a bank examiner
for the Office of the Comptroller of the Currency (OCC) in Charlotte, NC. While
with the OCC, Kristi was responsible for assessing the financial performance of
both community and regional banks throughout the Carolinas. In addition to those
field responsibilities, she was also the assigned analyst for ongoing
communications with management and for the monitoring of two South Carolina
community banks with combined total assets in excess of $400 million.
Kristi received a Bachelor of Science degree in Finance from Virginia
Commonwealth University. She also completed formalized OCC training in bank
analysis, commercial bank management, consumer compliance, and commercial
credit.
The professionals of the firm have been guest lecturers for various professional
organizations and universities around the country.
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS RECENT TRANSACTION ANNOUNCEMENTS
------------------------------------------------
Anchor Financial Corporation merged with Topsail State Bank
BB&T acquisition of Mutual Savings of Reidsville
Horizon Bancorp Inc. merged with Allegheny Bankshares Corp.
Sequoia Federal Savings Bank acquisition of Federal Capital Bank
New East Bancorp private placement
Peoples Bank of Richwood sale to First Community
Sale of HESCO to private investor
Sale of SEMCO to private investor
Triangle Bancorp acquisition of New East Bancorp
United Carolina Bank acquisition of Home Federal Savings Bank
Patmark Research Services acquired Specialized Patent Services
Triad Bank merger with BTNC Corp
MNC Financial sale of Virginia Federal to Crestar Financial
First Citizens acquisition of First Savings Bank
National Bank of South Carolina acquisition of Standard Federal
Bank of Lancaster acquisition of Tidemark Bank for Savings branch
Centura Bank acquisition of First American Federal Savings Bank
Central State Bank sale to First Bank
NBSC sale of Loan Portfolios to Liberty
Jefferson Savings and Loan acquisition of 2 First Union branches
Bank of Marlinton sale to First Citizens
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS RECENT TRANSACTION ANNOUNCEMENTS
------------------------------------------------
(continued)
United Insulation Company, Inc. sale of minority interest
Bank of Iredell sale to United Carolina Bank
Pioneer Financial Corporation sale to Signet Bank
First M & F acquisition of Starkville branch of Security Federal
FNB of Albany acquisition of Ripley branch of Security Federal
FNB of Bolivar County acquisition of Cleveland branch of Sec. Fed.
Farmers & Merchants acquisition of Booneville branch of Sec. Fed.
United Southern acquisition of Clarksdale branch of Sec. Federal
Peoples Bank acquisition of Selma branch of Altus Federal
Old White Bankshares, Inc. sale to First Citizens
Pace American sale to First Citizens
First Investors Savings Bank, SSB sale to First Citizens
Abigail Adams Bancorp sale to private investor
Sale of SBI Publishing to private investor
Independent Bank sale to Crestar Financial Corporation
Union Planters acquisition of Cherokee Federal Savings Bank
First Citizens acquisition of State Bank
Columbus National Bank sale to Triangle Bancorp
NBSC Corporation sale to Synovus Financial Corporation
Bank of the Potomac sale to F&M National Corporation
Lucor, Inc. private placement of senior debt
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS RECENT TRANSACTION ANNOUNCEMENTS
------------------------------------------------
(continued)
Sale of 15 First Union branches to:
. First Citizens
. Enterprise Bank
. Peoples Bank
. Security Capital Bancorp
. Southern Bank and Trust Co.
. Community Bank and Trust Co.
. Citizens Bank
Bank of Southside Virginia acquisition of NationsBank branches
Sale of 2 Newberry Federal branches to American Federal Bank
Suburban Bank of Virginia sale to Tysons Financial Corporation
First Commercial Bank sale to United Bankshares
Templeton National Bank sale to Bank of Santa Maria
First Merchants Bancorp sale to City Holding Company
SNB Financial Corp. sale to First Citizens Bancorp of SC
Laser Entertainment of the Carolina's LLC private placement of equity
Old North State Bank merger with Piedmont Bancorp
Sale of First Union branch to Sterling Bancorp
CoBank Financial Corporation sale to Vallicorp Holdings, Inc.
Seaboard Bancorp, Inc. sale to Life Bancorp, Inc.
Bank of Tazewell sale to National Bankshares, Inc.
Bank of Union sale to First Charter Corporation
Sale of Mutual Savings Bank to American National Bankshares, Inc.
Sale of Gulf South Bancshares, Inc. to Gulf Coast Bank and Trust Company
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS RECENT TRANSACTION ANNOUNCEMENTS
------------------------------------------------
(continued)
Sale of 2 Union Planters Branches to First Farmers and Merchants National Bank
Sale of Twentieth Bancorp, Inc. to Horizon Bancorp, Inc.
Conversion of Home Savings Bank of Siler City
Sale of Friendship Community Bank to Fidelity National
================================================================================
Baxter Fentriss & Company
================================================================================
BAXTER FENTRISS
---------------
RECENT CORPORATE ANNOUNCEMENTS
------------------------------
ESOP valuation of Bank of Lancaster
Financial advisor to Valuation of Cason Company, Inc.
Financial advisor to The Bank of Currituck
Financial advisor to Abigail Adams Bancorp shareholder rights plan
Financial advisor to United Insulation Company, Inc.
Financial advisor to Central State Bank minority interest
Financial advisor to Randleman Savings Bank, SSB
Financial advisor to Office Supply Services, Inc.
Financial advisor to CompSource, Inc.
Financial advisor to Insura, Inc.
Financial advisor to Rawls & Winstead, Inc.
Financial advisor to Robert W. Chapman & Co., Inc.
Financial advisor to Old North State Bank
Financial advisor to Commonwealth Packaging Corporation
================================================================================
Baxter Fentriss & Company
Exhibit II-1
Balance Sheet
June 30, 1993, 1994, 1995, and 1996
June 30,
1993 1994 1995 1996
----------- ----------- ----------- -----------
ASSETS
Cash on hand and in banks $ 1,558,094 $ 1,088,027 $ 1,418,980 $ 1,207,513
Interest-bearing balances in other banks 837,766 867,029 3,448,058 $ 4,685,583
Marketable equity securities 1,049,747 625,585 ----- -----
Investment Securities 10,194,654 ----- ----- -----
Investment securities available for sale ----- ----- 5,474,425 8,386,835
Investment securities held to maturity ----- 13,806,049 8,883,510 7,974,880
Loans receivable, net 67,900,425 67,679,671 68,744,661 68,357,610
Mortgage-backed securities 2,569,337 ----- ----- -----
Accrued interest receivable 549,556 545,526 537,179 577,578
Premises and equipment, net 1,391,060 1,526,212 1,403,086 1,355,694
Real estate acquired in settlement of loans 43,459 ----- ----- 29,074
Stock in Federal Home Loan Bank 706,100 734,700 734,700 734,700
Other assets 553,276 631,443 765,733 800,589
TOTAL ASSETS $87,353,474 $87,504,242 $91,410,332 $94,110,056
LIABILITIES & RETAINED
EARNINGS
Deposit Accounts $79,004,962 $78,315,213 $81,437,068 $83,714,929
Accrued interest payable 172,815 126,536 218,171 210,823
Accrued income taxes payable 5,000 ----- ----- -----
Advance payments by borrowers 910,412 669,231 656,786 469,603
Accrued expenses and other liabilities 699,391 979,312 970,145 1,073,975
TOTAL LIABILITIES $80,792,580 $80,090,292 $83,282,170 $85,469,330
Retained income, substantially restricted 6,560,894 7,413,950 8,128,162 8,640,726
TOTAL LIABILITIES AND EQUITY $87,353,474 $87,504,242 $91,410,332 $94,110,056
Source: Richmond Savings Bank, S.S.B., Financial Statements
42
Exhibit II-2
Consolidated Statements of Income
For the Years Ended June 30, 1993, 1994, 1995, and 1996
Year Ended June 30,
-------------------
1993 1994 1995 1996
---------- ---------- ---------- ----------
Interest income:
Loans $5,647,234 $5,205,264 $5,403,633 $5,596,504
Mortgage-backed securities 245,870 ----- ----- -----
Investments and deposits in banks 804,502 922,393 973,970 1,239,616
---------- ---------- ---------- ----------
Total interest income $6,697,606 $6,127,657 $6,377,603 $6,863,120
Interest expense - deposits 3,453,714 2,933,705 3,271,197 2,886,644
---------- ---------- ---------- ----------
Net interest income $3,243,892 $3,193,952 $3,106,406 $2,886,644
Provision for loan losses 38,278 36,000 36,000 36,000
---------- ---------- ---------- ----------
Net interest income after provision $3,205,614 $3,157,952 $3,070,406 $2,850,644
Non-interest income:
Transaction income $ 343,650 $ 304,681 $ 288,452 $ 357,386
Gain on sale of loans & MB Securities 83,580 151,420 6,975 8,390
Gain (loss) on sale of investments 3,037 (1,544) (4,831) (4,404)
Gain on sale of real estate, net 3,355 3,943 5,875 -----
Other income 100,584 127,809 135,397 170,970
---------- ---------- ---------- ----------
Total other income $ 586,309 $ 586,309 $ 429,868 $ 532,342
Non-interest expenses:
Compensation and employee benefits $1,106,250 $1,201,018 $1,252,657 $1,284,791
Net occupancy expense 139,499 148,177 152,614 148,963
Equipment rental & maintenance 109,031 154,455 173,038 159,803
Marketing 55,317 57,454 43,343 50,351
Data Processing and other fees 286,164 274,849 266,523 274,763
Federal and other insurance premiums 195,867 221,419 216,983 218,822
Supplies, telephone, and postage 130,270 117,359 119,783 116,820
Other 190,803 216,985 226,942 239,107
---------- ---------- ---------- ----------
Total non-interest expenses $2,213,201 $2,391,716 $2,451,583 $2,492,880
Income (loss) before taxes $1,526,619 $1,352,545 $1,048,691 $ 890,106
Income tax benefit (expense) $ 570,309 $ 492,118 $ 329,168 $ 299,146
---------- ---------- ---------- ----------
Net income $ 956,310 $ 860,427 $ 719,523 $ 590,960
========== ========== ========== ==========
Source: Richmond Savings Bank, S.S.B., Financial Statements
43
Exhibit II-3
Composition of Loan Portfolio
At June 30, 1996
- -------------------------------------------------------------------------------
Fixed & Adjustable Rate
- -------------------------------------------------------------------------------
Type of Loan Amount Percent
- -------------------------------------------------------------------------------
Loans secured by 1-4 family residential $55,385,874 81.02%
properties
- -------------------------------------------------------------------------------
Construction and land development $ 2,300,620 2.87%
- -------------------------------------------------------------------------------
Loans secured by multi-family dwellings $ 1,963,248 3.37%
of five or more units
- -------------------------------------------------------------------------------
Home Equity Lines of Credit $ 5,465,095 7.99%
- -------------------------------------------------------------------------------
Consumer loans $ 2,861,449 4.19%
- -------------------------------------------------------------------------------
Loans secured by deposit accounts $ 723,738 1.06%
- -------------------------------------------------------------------------------
Home improvement Loans $ 927,919 1.36%
- -------------------------------------------------------------------------------
Total Loans $69,628,043 101.86%
- -------------------------------------------------------------------------------
Less:
- -------------------------------------------------------------------------------
Construction loans in process $ 881,075 1.29%
- -------------------------------------------------------------------------------
Allowance for loan losses $ 389,358 0.57%
- -------------------------------------------------------------------------------
Loans, net $68,357,610 100.00%
- -------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements
44
Exhibit II-4
Description of Office Facilities
At June 30, 1996
- --------------------------------------------------------------------------------
Location Ownership Net Book Value of Property or
Year Opened Improvements at 6/30/96
- --------------------------------------------------------------------------------
Main Office Land and building $274,299
1956
- --------------------------------------------------------------------------------
Plaza Branch Lease $ 5,110
1965
- --------------------------------------------------------------------------------
Ellerbe Land and building $ 35,210
1978
- --------------------------------------------------------------------------------
Southern Pines Land and building $744,210
1987
- --------------------------------------------------------------------------------
Laurinburg Lease N/A
1989
- --------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Financial Statements and Records
45
Exhibit II-5
Directors and Executive Officers
Richmond Savings Bank, S.S.B.
- -------------------------------------------------------------------------------
Name Position
Year of Birth Director Since
- -------------------------------------------------------------------------------
Russell E. Bennett Director
1926 1967-1970, 1982
- -------------------------------------------------------------------------------
R. Larry Campbell Director and President
1944 1990
- -------------------------------------------------------------------------------
Buena Vista Coggin Director
1928 1978
- -------------------------------------------------------------------------------
Joe M. McLaurin Director
1926 1978
- -------------------------------------------------------------------------------
John T. Page, Jr. Director and Vice Chairman
1924 1975
- -------------------------------------------------------------------------------
W. Jesse Spencer Director
1921 1988
- -------------------------------------------------------------------------------
Dr. J. Stanley Vetter Director and Chairman
1928 1970
- -------------------------------------------------------------------------------
E. E. Vuncannon, Jr. Director
1928 1969
- -------------------------------------------------------------------------------
Source: Richmond Savings Bank, S.S.B., Internal Documents
46
- --------------------------------------------------------------------------------
EXHIBIT III-1
Profitability Analysis
For the Twelve Months Ended June 30, 1996
Net Interest
- ------------------------------------------------------------------------------------------------------------------------------------
Net Interest Income Aft. G&A Net Interest Core Net
Return on Return on Income/ Provision/ Expense/ Income/ Income/ Interest
Avg Assets Avg Equity Avg Assets Avg Assets Avg Assets G&A Expense Avg Assets Margin
Institution (%) (%) (%) (%) (%) (%) (%) (%)
- ----------- --- --- --- --- --- --- --- ---
- ------------------------------------------------------------------------------------------------------------------------------------
RICHMOND SAVINGS
Nine Months Ended 6/30/96 0.64 7.01 3.11 3.07 2.69 115.76 0.63 2.77
Comparative Group:
Maximum 1.48 8.14 4.13 4.07 3.58 250.60 1.51 4.29
Minimum 0.08 0.48 2.33 2.24 0.00 100.85 0.04 2.38
Average 1.00 5.30 3.58 3.56 2.20 164.93 0.98 3.72
Median 1.11 5.68 3.61 3.61 2.13 163.98 1.12 3.74
ASB Financial Corp. 1.02 4.52 3.44 3.44 2.04 168.52 1.02 3.56
Bedford Bancshares, Inc. 1.29 7.96 3.99 3.99 2.47 161.60 1.28 4.16
Wood Bancorp, Inc. 1.17 8.14 4.13 4.05 2.52 163.98 1.13 4.29
First Ashland Financial Corp 0.96 3.61 3.37 3.35 2.11 159.44 0.95 3.53
First Savings Financial Corp 0.08 0.48 2.33 2.24 2.16 107.87 0.04 2.38
Home Savings Bank of Siler Cty NA NA NA NA NA NA NA NA
KS Bancorp, Inc. 1.11 6.88 3.72 3.67 2.04 182.79 1.12 3.96
Piedmont Bancorp, Inc. 1.35 7.23 4.15 4.07 2.15 188.68 1.38 4.17
First Savings Bancorp, Inc. 1.48 5.68 3.61 3.61 1.44 250.60 1.51 3.68
SouthFirst Bancshares, Inc. 0.55 3.24 3.61 3.57 3.58 100.85 0.37 3.74
- ------------------------------------------------------------------------------------------------------------------------------------
Source: SNL Securities, L.P.
EXHIBIT III-2
Income and Expense Analysis
For the Twelve Months Ended June 30, 1996
As a Percent of Average Assets
Net Real Loan Amortization
Interest Interest Interest Loan Other Gain Estate Loss G&A of
Income Expense Income Fees Income On Sale Expense Provision Expense Intangibles
Institution (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
(1)
RICHMOND SAVINGS: (as of 6/30/96) 7.37 4.26 3.11 0.00 0.57 0.01 0.00 0.04 2.69 0.00
Comparative Group:
Maximum 8.03 4.53 4.15 0.28 0.60 0.12 0.00 0.09 3.58 0.01
Minimum 6.86 3.62 2.33 0.00 0.03 (0.04) (0.03) 0.00 1.44 0.00
Average 7.54 3.94 3.59 0.05 0.20 0.02 (0.00) 0.04 2.27 0.00
Median 7.46 3.79 3.61 0.00 0.14 0.01 0.00 0.04 2.11 0.00
ASB Financial Corp. 7.45 4.01 3.44 0.00 0.15 0.00 0.00 0.00 2.04 0.00
Bedford Bancshares, Inc. 7.76 3.77 3.99 0.28 0.24 0.01 (0.03) 0.00 2.47 0.00
Wood Bancorp, Inc. 7.92 3.79 4.13 0.00 0.26 0.06 0.00 0.08 2.52 0.00
First Ashland Financial Corp 7.15 3.79 3.37 0.04 0.06 0.02 0.00 0.01 2.11 0.00
First Savings Financial Corp 6.86 4.53 2.33 0.00 0.03 0.09 0.00 0.09 2.16 0.00
Home Savings Bank of Siler Cty NA NA NA NA NA NA NA NA NA NA
KS Bancorp, Inc. 8.03 4.31 3.72 0.00 0.16 (0.02) 0.00 0.05 2.04 0.01
Piedmont Bancorp, Inc. 7.95 3.79 4.15 0.12 0.13 (0.04) 0.00 0.08 2.10 0.00
First Savings Bancorp, Inc. 7.24 3.62 3.61 0.00 0.13 (0.04) (0.00) 0.00 1.44 0.00
SouthFirst Bancshares, Inc. 7.47 3.86 3.61 0.00 0.60 0.12 0.00 0.04 3.58 0.00
(1) Specific figure was not available. Amount is included in appropriate other
income ratio.
Source: SNL Securities, L.P.
EXHIBIT III-3
Yield-Cost Structure
For the Twelve Months Ended June 30, 1996
Average Average
Int Earning Int Bearing
Assets/ Liabilities/ Net Yield on Cost of Interest
Average Average Interest Int Earning Int Bearing Yield
Assets Assets Position Assets Liabilities Spread
Institution (%) (%) (%) (%) (%) (%)
- ----------- --- --- --- --- --- ---
RICHMOND SAVINGS: (as of 6/30/96) 95.49 86.10 9.39 7.72 4.94 2.77
----------------------------------------------------------------------------------
Comparative Group:
Maximum 98.15 84.86 25.39 8.54 5.50 3.77
Minimum 94.03 72.75 11.25 7.00 4.47 1.51
Average 96.48 78.23 18.25 7.81 5.05 2.77
Median 96.59 78.28 16.64 7.74 4.98 2.97
ASB Financial Corp. 96.59 75.85 20.75 7.71 5.28 2.43
Bedford Bancshares, Inc. 96.01 78.47 17.54 8.08 4.80 3.28
Wood Bancorp, Inc. 96.11 84.86 11.25 8.24 4.47 3.77
First Ashland Financial Corp 95.48 72.75 22.73 7.49 5.21 2.28
First Savings Financial Corp 97.93 82.61 15.33 7.00 5.49 1.51
Home Savings Bank of Siler Cty NA NA NA NA NA NA
KS Bancorp, Inc. 94.03 78.28 15.74 8.54 5.50 3.04
Piedmont Bancorp, Inc. 97.39 77.50 19.90 8.16 4.93 3.23
First Savings Bancorp, Inc. 98.15 72.77 25.39 7.37 4.98 2.39
SouthFirst Bancshares, Inc. 96.60 80.96 15.63 7.74 4.77 2.97
Source: SNL Securities, L.P.
EXHIBIT III-4
Risk Measures
As of June 30, 1996
NPAs + Loans Loan Loss
NPAs/ 90+ Pst Due/ NPLs/ NPAs/ Reserves/ Reserves/ Reserves/
Assets Assets Loans Equity Loans NPAs NPLs
Institution (%) (%) (%) (%) (%) (%) (%)
RICHMOND SAVINGS: (as of 6/30/96) 0.06 0.06 0.04 0.68 0.57 659.32 1,296.67
Comparative Group:
Maximum 1.48 1.48 1.46 6.40 1.30 936.92 1,764.29
Minimum 0.00 0.03 0.00 0.00 0.17 53.58 57.53
Average 0.35 0.64 0.43 1.70 0.63 365.71 488.72
Median 0.11 0.56 0.16 0.94 0.54 167.19 198.96
ASB Financial Corp. 1.48 1.48 1.46 6.40 1.30 53.58 89.56
Bedford Bancshares, Inc. 0.00 0.87 0.00 0.00 0.61 NM NM
Wood Bancorp, Inc. 0.04 0.18 0.03 0.28 0.46 851.72 1764.29
First Ashland Financial Corp NA NA NA NA 0.17 NA NM
First Savings Financial Corp 0.41 0.41 0.78 2.26 0.97 123.97 123.97
Home Savings Bank of Siler Cty 0.08 0.99 0.16 0.36 0.93 583.33 583.33
KS Bancorp, Inc. 0.51 0.51 0.62 3.46 0.36 57.53 57.53
Piedmont Bancorp, Inc. 0.44 0.72 0.61 1.47 0.66 108.24 80.21
First Savings Bancorp, Inc. 0.03 0.03 0.04 0.10 0.35 936.92 936.92
SouthFirst Bancshares, Inc. 0.14 0.56 0.16 0.94 0.45 210.40 273.96
Net Loan Intangible
Chargeoffs/ Loans/ Assets/
Avg Loans Assets Equity
Institution (%) (%) (%)
RICHMOND SAVINGS: (as of 6/30/96) 0.01 72.64 0.00
Comparative Group:
Maximum 0.05 85.47 0.10
Minimum (0.43) 52.50 0.00
Average (0.03) 68.71 0.01
Median 0.00 69.37 0.00
ASB Financial Corp. 0.05 60.64 0.00
Bedford Bancshares, Inc. 0.00 85.47 0.00
Wood Bancorp, Inc. 0.00 76.37 0.00
First Ashland Financial Corp 0.00 72.12 0.00
First Savings Financial Corp (0.43) 52.50 0.00
Home Savings Bank of Siler Cty 0.00 53.21 0.00
KS Bancorp, Inc. 0.00 82.03 0.10
Piedmont Bancorp, Inc. 0.02 71.44 0.00
First Savings Bancorp, Inc. 0.00 67.30 0.00
SouthFirst Bancshares, Inc. 0.02 65.99 0.00
Source: SNL Securities, L.P.
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT III-5
Capital Structure
As of June 30, 1996
Intangible Tangible Regulatory Core Cap/ Total Cap/
Assets/ Deposits/ Borrowings/ Equity/ Equity/ Tang Cap/ Risk-Adj Risk-Adj
Equity Assets Assets Assets Tang Assets Assets Assets Assets
Institution (%) (%) (%) (%) (%) (%) (%) (%)
- ----------- --- --- --- --- --- --- --- ---
RICHMOND SAVINGS: (as of 6/30/96) 0.00 88.95 0.00 9.18 9.18 9.69 17.62 18.41
Comparative Group:
Maximum 0.10 82.28 11.32 29.77 29.77 20.15 26.09 64.34
Minimum 0.00 58.71 0.17 14.60 14.60 12.11 12.11 23.03
Average 0.01 74.22 3.97 20.77 20.77 14.79 17.07 35.36
Median 0.00 73.74 2.36 20.65 20.65 12.78 16.33 36.25
ASB Financial Corp. 0.00 74.05 1.27 23.08 23.08 16.33 16.33 36.56
Bedford Bancshares, Inc. 0.00 77.29 6.57 15.22 15.22 12.78 12.78 23.22
Wood Bancorp, Inc. 0.00 82.28 2.41 14.60 14.60 12.11 12.11 23.51
First Ashland Financial Corp 0.00 69.82 2.31 27.21 27.21 20.15 20.15 40.58
First Savings Financial Corp 0.00 80.49 0.29 18.22 18.22 NA NA NA
Home Savings Bank of Siler Cty 0.00 73.43 1.16 23.72 23.72 NA NA NA
KS Bancorp, Inc. 0.10 81.24 3.21 15.16 14.78 NA NA NA
Piedmont Bancorp, Inc. 0.00 58.71 11.01 29.77 29.77 NA 19.49 36.25
First Savings Bancorp, Inc. 0.00 72.76 0.17 26.21 26.21 NA 26.09 64.34
SouthFirst Bancshares, Inc. 0.00 72.17 11.32 14.89 14.89 12.57 12.57 23.03
- ------------------------------------------------------------------------------------------------------------------------------------
Source: SNL Securities, L.P.
EXHIBIT III-6
Financial Condition
As of June 30, 1996
As a Percent of Total Assets
Total Mortgage Investment & Goodwill &
Cash and Backed Gross Foreclosed Other
Investments Securities Loans Real Estate Intangibles
Institution (%) (%) (%) (%) (%)
RICHMOND SAVINGS: (as of 6/30/96) 23.65 1.92 73.99 0.03 0.00
Comparative Group (1):
Maximum 44.18 11.14 84.71 0.63 0.02
Minimum 12.03 0.45 52.97 0.00 0.00
Average 22.66 4.79 70.32 0.09 0.00
Median 21.13 4.06 71.81 0.01 0.00
ASB Financial Corp. 22.33 11.14 63.97 0.63 0.00
Bedford Bancshares, Inc. 12.03 0.45 84.71 0.00 0.00
Wood Bancorp, Inc. 15.82 3.90 78.21 0.02 0.00
First Ashland Financial Corp 15.06 4.60 76.96 0.23 0.00
First Savings Financial Corp 44.18 1.20 52.97 0.00 0.00
Home Savings Bank of Siler Cty 34.58 10.90 53.22 0.00 0.00
KS Bancorp, Inc. 13.16 1.80 82.98 0.00 0.02
Piedmont Bancorp, Inc. 20.36 4.21 73.41 0.00 0.00
First Savings Bancorp, Inc. 27.15 1.44 70.21 0.03 0.00
SouthFirst Bancshares, Inc. 21.90 8.26 66.57 0.03 0.00
(1) Comparative Financial Information as of 3/31/96
Source: SNL Securities, L.P.
EXHIBIT III-6
Financial Condition
As of June 30, 1996
As a Percent of Total Assets
Total Borrowings/ Other Equity/
Deposits Assets Liabilities Assets
Institution (%) (%) (%) (%)
RICHMOND SAVINGS: (as of 6/30/96) 88.95 0.00 1.14 9.18
Comparative Group (1):
Maximum 84.27 13.73 2.23 23.72
Minimum 66.56 0.00 0.55 12.11
Average 77.02 2.54 1.21 17.04
Median 77.60 1.20 0.93 15.88
ASB Financial Corp. 79.21 1.06 1.81 16.58
Bedford Bancshares, Inc. 79.09 2.96 0.73 12.99
Wood Bancorp, Inc. 84.27 0.39 0.76 12.11
First Ashland Financial Corp 74.55 1.24 1.65 20.10
First Savings Financial Corp 82.45 1.33 1.05 15.17
Home Savings Bank of Siler Cty 73.44 1.16 1.68 23.72
KS Bancorp, Inc. 81.71 3.38 0.82 14.09
Piedmont Bancorp, Inc. 66.56 13.73 0.55 19.16
First Savings Bancorp, Inc. 76.10 0.18 0.81 22.92
SouthFirst Bancshares, Inc. 72.84 0.00 2.23 13.52
(1) Comparative Financial Information as of 3/31/96
Source: SNL Securities, L.P.
EXHIBIT III-7
Growth Rates
As of June 30, 1996
Quarter Ended 6/30/96, Annualized
Asset Loan Deposit
Growth Growth Growth
Rate Rate Rate
Institution (%) (%) (%)
RICHMOND SAVINGS: (as of 6/30/96) (4.88) (0.54) (6.62)
Comparative Group:
Maximum 16.31 25.26 19.32
Minimum (14.88) 11.40) (5.62)
Average 4.55 6.43 5.55
Median 6.81 5.83 5.48
ASB Financial Corp. 6.40 9.82 6.12
Bedford Bancshares, Inc. 14.24 15.60 5.17
Wood Bancorp, Inc. (1.89) 11.40) 10.27
First Ashland Financial Corp (14.88) (6.37) (5.62)
First Savings Financial Corp (1.73) 5.10 0.80
Home Savings Bank of Siler Cty 7.21 (1.72) 10.70
KS Bancorp, Inc. 16.31 16.39 19.32
Piedmont Bancorp, Inc. 7.72 6.53 0.80
First Savings Bancorp, Inc. (2.50) 5.13 2.15
SouthFirst Bancshares, Inc. 14.57 25.26 5.79
Source: SNL Securities, L.P.
EXHIBIT III-7
Growth Rates
As of June 30, 1996
LTM Ended June 30, 1996
Asset Loan Deposit
Growth Growth Growth
Rate Rate Rate
Institution (%) (%) (%)
RICHMOND SAVINGS: (as of 6/30/96) 2.95 0.56 2.80
Comparative Group:
Maximum 22.20 17.89 12.05
Minimum (1.27) (4.49) (14.70)
Average 8.38 7.66 1.60
Median 7.00 7.38 1.20
ASB Financial Corp. 15.61 13.35 (1.36)
Bedford Bancshares, Inc. 8.92 6.96 8.45
Wood Bancorp, Inc. 5.90 (0.69) 12.05
First Ashland Financial Corp (1.27) 7.38 (14.70)
First Savings Financial Corp 8.56 (4.49) (2.04)
Home Savings Bank of Siler Cty NA NA NA
KS Bancorp, Inc. 7.00 11.54 10.35
Piedmont Bancorp, Inc. 22.20 6.71 (4.31)
First Savings Bancorp, Inc. 2.63 10.31 4.74
SouthFirst Bancshares, Inc. 5.84 17.89 1.20
Source: SNL Securities, L.P.
EXHIBIT III-8
Loan Portfolio Distribution
As of June 30, 1996
Total Total Total 1-4 Family 5+ Family
Gross Loans in Construction Permanent Permanent
Loans Process Mort Loans Mort Loans Mort Loans
Institution ($000) ($000) ($000) ($000) ($000)
RICHMOND SAVINGS (as of 6/30/96) 69,628 (881) 2,301 55,386 * 1,963
Comparative Group:
Maximum 172,502 (335) 17,838 156,683 8,240
Minimum 30,248 (7,431) 0 27,799 0
Average 79,368 (2,670) 3,887 67,428 1,624
Median 70,829 (168) 1,106 62,722 738
ASB Financial Corp. 67,950 (563) 547 47,890 8,240
Bedford Bancshares, Inc. 100,512 (3,240) 10,104 76,352 211
Wood Bancorp, Inc. 106,881 (1,781) 3,340 87,488 1,613
First Ashland Financial Corp 62,819 (335) 0 57,088 1,168
First Savings Financial Corp 30,984 NA 217 27,799 1,246
Home Savings Bank of Siler Cty 30,248 NA 321 28,690 58
KS Bancorp, Inc. 73,708 NA 4,296 68,355 299
Piedmont Bancorp, Inc. 89,210 NA 585 79,339 307
First Savings Bancorp, Inc. 172,502 NA 1,626 156,683 3,094
SouthFirst Bancshares, Inc. 58,868 (7,431) 17,838 44,596 0
Non-residential Total Total
(Except Land) Land Commercial Consumer
Mort Loans Mort Loans Loans Loans
Institution ($000) ($000) ($000) ($000)
RICHMOND SAVINGS (as of 6/30/96) NA NA * ** 9,978
Comparative Group:
Maximum 9,826 3,729 3,201 10,239
Minimum 44 0 0 80
Average 3,258 908 871 3,180
Median 2,302 0 237 1,844
ASB Financial Corp. 3,447 150 2,475 5,764
Bedford Bancshares, Inc. 4,479 3,729 1,961 6,916
Wood Bancorp, Inc. 2,226 555 3,201 10,239
First Ashland Financial Corp 2,377 106 0 2,415
First Savings Financial Corp 1,642 NA 0 80
Home Savings Bank of Siler Cty 781 NA 0 389
KS Bancorp, Inc. 526 NA 0 232
Piedmont Bancorp, Inc. 7,227 NA 602 1,141
First Savings Bancorp, Inc. 9,826 NA 0 1,273
SouthFirst Bancshares, Inc. 44 0 474 3,347
* Total includes Multi family residential and commercial
** Total includes other loans and home equity lines of credit
Source: SNL Securities, L.P.
EXHIBIT III-9
PUBLIC COMPANIES CONSIDERED FOR COMPARATIVE GROUP
REASONS FOR EXCLUSION
LTM Return
Equity/ on Avg.
Ticker Short Name State Total Asset Assets Assets Reason For Exclusion
- ------ ---------- ----- ($000) (%) (%) --------------------
------ --- ---
Selected Comparative Institutions
- ---------------------------------
ASBP ASB Financial Corp. OH 111,718 23.08 1.02
BFSB Bedford Bancshares, Inc. VA 121,783 15.22 1.29
FFWD Wood Bancorp, Inc. OH 139,718 14.60 1.17
FSBS First Ashland Financial Corp KY 86,860 27.21 0.96
FSVF First Savings Financial Corp NC 58,799 18.22 0.08
HSSC Home Savings Bank of Siler Cty NC 56,489 23.72 NA
KSAV KS Bancorp, Inc. NC 93,536 14.79 1.11
PDB Piedmont Bancorp, Inc. NC 128,711 29.77 1.35
SOPN First Savings Bancorp, Inc. NC 256,294 26.21 1.48
SZB SouthFirst Bancshares, Inc. AL 88,899 14.89 0.55
Excluded Institutions
- ---------------------
BRFC Bridgeville Savings Bank PA 55,712 28.51 1.24 Location
CBCO CB Bancorp, Inc. IN 195,658 9.87 1.38 Asset size
ETFS East Texas Financial Services TX 114,961 19.63 0.89 Location
FFBS FFBS BanCorp, Inc. MS 123,553 19.56 1.32 Location
FFWC FFW Corp. IN 148,892 10.80 0.90 Location
FLAG FLAG Financial Corp. GA 225,960 9.56 0.92 Asset size, low capital ratio
FSBC First Savings Bank, FSB NM 115,492 4.74 0.31 Location, low capital ratio
FSSB First FS&LA of San Bernardino CA 103,288 5.64 (0.17) Location, financial performance
GLBK Glendale Co-Operative Bank MA 36,677 15.82 0.77 Location
HBBI Home Building Bancorp IN 43,135 13.94 0.41 Location
HRBF Harbor Federal Bancorp, Inc. MD 201,030 13.82 0.56 Asset size
HZFS Horizon Financial Svcs Corp. IA 73,464 11.42 0.53 Location
INCB Indiana Community Bank, SB IN 94,476 14.98 0.67 Location
IPSW Ipswich Savings Bank MA 150,962 5.76 1.30 Location, low capital ratio
KSBK KSB Bancorp, Inc. ME 132,533 6.82 0.89 Location
LOAN Horizon Bancorp TX 130,930 8.55 1.47 Asset size, location
LSBI LSB Financial Corp. IN 162,520 10.66 0.83 Asset size, location
MBLF MBLA Financial Corp. MO 195,074 14.54 0.70 Asset size, location
MCBN Mid-Coast Bancorp, Inc. ME 55,048 9.04 0.60 Location
MFCX Marshalltown Financial Corp. IA 125,308 15.61 0.38 Location
MFFC Milton Federal Financial Corp. OH 178,289 18.93 1.04 Location
MFLR Mayflower Co-operative Bank MA 113,182 9.58 0.89 Location
MFSB Mutual Bancompany MO 53,311 11.70 0.20 Financial Performance, location
MIFC Mid-Iowa Financial Corp. IA 115,260 9.38 0.93 Location
MORG Morgan Financial Corp. CO 71,654 14.66 0.97 Location
MWBI Midwest Bancshares, Inc. IA 138,628 6.67 1.01 Location, low capital ratio
NBSI North Bancshares, Inc. IL 119,436 15.50 0.59 Financial performance, location
NFSL Newnan Savings Bank, FSB GA 160,656 11.58 1.89 Location, financial performance
NWEQ Northwest Equity Corp. WI 91,804 12.77 1.00 Location
PCBC Perry County Financial Corp. MO 78,480 20.05 1.00 Location
PTRS Potters Financial Corp. OH 114,714 9.24 0.51 Asset size, low capital ratio
SFFC StateFed Financial Corporation IA 76,705 19.46 1.19 Location
SHFC Seven Hills Financial Corp. OH 45,511 21.21 0.36 Financial Performance
SISB SIS Bancorp, Inc. MA 1,209,843 7.19 1.38 Asset size, location
SJSB SJS Bancorp MI 150,752 11.67 0.63 Asset size, location
SMBC Southern Missouri Bancorp, Inc MO 161,992 16.40 0.87 Asset size, location
THBC Troy Hill Bancorp, Inc. PA 80,484 22.20 1.38 Location
THIR Third Financial Corp. OH 155,911 18.38 1.37 Asset size, financial performance
THR Three Rivers Financial Corp. MI 85,138 15.32 NA Location, no financial performance data
TRIC Tri-County Bancorp, Inc. WY 76,718 16.17 0.95 Location
UBMT United Financial Corp. MT 104,574 23.53 1.50 Location, financial performance
Source: SNL Securities, L.P.
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
Total Current Current
Assets Stock Market
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- -------------------------------------------------------------------------------------------------------------
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
- -------------------------------------------------------------------------------------------------------------
Advantage Bancorp, Inc. WI AADV 996719 33.5 113.66 128.99 148.23
Abington Savings Bank MA ABBK 483549 16.125 30.43 96.79 109.62
Anchor BanCorp Wisconsin WI ABCW 1754556 35 169.38 145.83 149.76
Affiliated Community Bancorp MA AFCB 983904 17.5 88.91 90.67 91.34
America First Financial Fund CA AFFFZ 2274053 29.25 175.81 113.11 115.57
Ambanc Holding Co., Inc. NY AHCI 392338 9.875 53.54 71.2 71.2
Ahmanson & Company (H.F.) CA AHM 49506630 26 2786.89 131.45 140.77
Albion Banc Corp. NY ALBC 56692 17.5 4.56 75.14 75.14
ALBANK Financial Corporation NY ALBK 3325592 26 345.49 109.11 123.52
American Federal Bank, FSB SC AMFB 1339147 16.25 177.61 164.47 178.38
AMB Financial Corp. IN AMFC 80533 10.375 11.66 NA NA
Acadiana Bancshares, Inc. LA ANA 225248 12 32.78 NA NA
American National Bancorp MD ANBK 449019 9.875 37.34 76.73 76.73
Andover Bancorp, Inc. MA ANDB 1173956 24.25 103.06 116.2 116.2
Ameriana Bancorp IN ASBI 402051 13.25 43.77 98.08 98.22
ASB Financial Corp. OH ASBP 112988 14.75 25.28 92.59 92.59
Astoria Financial Corporation NY ASFC 7078383 26.75 575.38 102.45 125.94
AmTrust Capital Corp. IN ATSB 73072 9.25 5.24 69.44 70.18
Avondale Financial Corp. IL AVND 592727 14 50.4 85.73 85.73
BankAtlantic Bancorp, Inc. FL BANC 1975287 11.875 185.3 125.13 135.4
First Federal Bancorporation MN BDJI 104969 13.75 10.7 76.9 76.9
BostonFed Bancorp, Inc. MA BFD 777997 12.375 81.55 85.05 85.05
Bedford Bancshares, Inc. VA BFSB 121783 17 19.74 100.24 100.24
BFS Bankorp, Inc. NY BFSI 621324 39.75 65.01 133.7 133.7
American Bank of Connecticut CT BKC 531638 26.25 60.03 133.25 140.22
Bankers Corp. NJ BKCO 1915528 17.75 227.1 120.83 123.44
Bancorp Connecticut, Inc. CT BKCT 405761 22 58.45 136.48 136.48
BankUnited Financial Corp. FL BKUNA 738491 7.25 39.52 91.42 96.8
Bank Plus Corp. CA BPLS 3296633 10.25 186.99 107.33 NA
Bridgeville Savings Bank PA BRFC 55712 15.25 17.14 107.93 107.93
Branford Savings Bank CT BSBC 178121 3.125 16.19 131.3 131.3
Bay View Capital Corp. CA BVFS 3388847 35.25 242.7 117.74 133.42
Bank West Financial Corp. MI BWFC 139217 11.75 25.63 98 98
Broadway Financial Corp. CA BYFC 115222 10 8.93 67.89 67.89
Camco Financial Corporation OH CAFI 343711 19 39.33 137.38 137.38
Cal Fed Bancorp, Inc. CA CAL 14045400 22.625 1117.58 163.59 163.59
Capital Savings Bancorp, Inc. MO CAPS 202554 19.75 19.5 97.1 97.1
Carver Federal Savings Bank NY CARV 362369 8 18.52 53.23 55.83
Cascade Financial Corp. WA CASB 326266 17 34.78 171.03 171.03
First Midwest Financial, Inc. IA CASH 342095 21.75 38.68 99.13 106.15
Catskill Financial Corp. NY CATB 231164 10.5 59.71 NA NA
Calumet Bancorp, Inc. IL CBCI 500814 27.813 67.38 83.7 83.7
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ------------------------------------------------------------------------------------------------------
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
- ------------------------------------------------------------------------------------------------------
Advantage Bancorp, Inc. WI AADV 11.4 13.96 14.08 0.96 9.44
Abington Savings Bank MA ABBK 6.29 9.38 18.12 2.48 6.5
Anchor BanCorp Wisconsin WI ABCW 9.84 12.15 12.96 1.43 6.75
Affiliated Community Bancorp MA AFCB 9.04 9.31 NA 2.74 9.85
America First Financial Fund CA AFFFZ 7.73 9.26 9.32 5.47 7.09
Ambanc Holding Co., Inc. NY AHCI 13.65 NM NA 0 19.17
Ahmanson & Company (H.F.) CA AHM 5.63 13 7.69 3.39 5.61
Albion Banc Corp. NY ALBC 8.05 20.83 26.12 1.75 10.71
ALBANK Financial Corporation NY ALBK 10.39 12.04 12.5 1.85 9.52
American Federal Bank, FSB SC AMFB 13.25 10.69 10.98 2.46 8.21
AMB Financial Corp. IN AMFC NA NA NA 0 20.05
Acadiana Bancshares, Inc. LA ANA NA NA NA 0 7.86
American National Bancorp MD ANBK 8.75 13.72 NA 0 10.92
Andover Bancorp, Inc. MA ANDB 8.78 8.79 9.51 2.47 7.56
Ameriana Bancorp IN ASBI 10.89 13.25 13.52 4.23 11.1
ASB Financial Corp. OH ASBP 22.38 19.41 21.38 2.71 22.7
Astoria Financial Corporation NY ASFC 8.13 12.16 11.73 1.65 7.93
AmTrust Capital Corp. IN ATSB 7.18 15.42 25.69 0 10.34
Avondale Financial Corp. IL AVND 8.5 13.46 15.05 0 9.92
BankAtlantic Bancorp, Inc. FL BANC 8.97 8.25 9.65 1.19 7.17
First Federal Bancorporation MN BDJI 10.2 12.73 15.63 0 13.26
BostonFed Bancorp, Inc. MA BFD 10.48 17.19 NA 1.62 11.43
Bedford Bancshares, Inc. VA BFSB 16.21 11.18 12.88 2.35 15.22
BFS Bankorp, Inc. NY BFSI 10.46 6.9 6.67 0 7.83
American Bank of Connecticut CT BKC 11.29 9.24 10.21 5.18 8.48
Bankers Corp. NJ BKCO 11.86 9.44 11.31 3.61 9.81
Bancorp Connecticut, Inc. CT BKCT 14.4 13.1 13.66 3.26 10.56
BankUnited Financial Corp. FL BKUNA 5.59 45.31 5.99 0 9.41
Bank Plus Corp. CA BPLS 5.67 64.06 NM 0 5.31
Bridgeville Savings Bank PA BRFC 30.77 23.83 25.42 2.1 28.51
Branford Savings Bank CT BSBC 11.51 13.02 13.59 0 8.75
Bay View Capital Corp. CA BVFS 7.16 14.69 121.55 1.7 6.08
Bank West Financial Corp. MI BWFC 19.38 22.6 26.11 2.38 19.78
Broadway Financial Corp. CA BYFC 7.75 NA NA 2 12.2
Camco Financial Corporation OH CAFI 11.44 8.48 9.41 2.31 8.33
Cal Fed Bancorp, Inc. CA CAL 7.96 7.86 10.98 0 4.86
Capital Savings Bancorp, Inc. MO CAPS 10.13 10.73 10.91 1.82 10.43
Carver Federal Savings Bank NY CARV 5.11 16.67 22.86 0 9.6
Cascade Financial Corp. WA CASB 10.63 14.66 22.08 0 6.21
First Midwest Financial, Inc. IA CASH 11.31 10.88 12.43 2.02 11.41
Catskill Financial Corp. NY CATB NA NA NA 0 12.75
Calumet Bancorp, Inc. IL CBCI 13.45 9.79 11.89 0 16.08
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
- ----------------------------------------------------------------------------------------------------------------
Advantage Bancorp, Inc. WI AADV 8.32 0.89 9.18 0.9 9.41
Abington Savings Bank MA ABBK 5.78 0.71 10.81 0.39 5.86
Anchor BanCorp Wisconsin WI ABCW 6.58 0.88 12.65 0.88 12.13
Affiliated Community Bancorp MA AFCB 9.78 1 9.97 0.74 6.71
America First Financial Fund CA AFFFZ 6.95 0.92 13.32 0.89 13.53
Ambanc Holding Co., Inc. NY AHCI 19.17 -0.3 -1.65 -0.03 -0.26
Ahmanson & Company (H.F.) CA AHM 5.34 0.55 9.6 0.92 15.79
Albion Banc Corp. NY ALBC 10.71 0.38 3.55 0.3 2.87
ALBANK Financial Corporation NY ALBK 8.51 0.94 9.78 0.97 9.5
American Federal Bank, FSB SC AMFB 7.62 1.3 15.72 1.29 15.99
AMB Financial Corp. IN AMFC 20.05 0.46 3.06 0.5 4.75
Acadiana Bancshares, Inc. LA ANA 7.86 NA NA -0.43 -5.23
American National Bancorp MD ANBK 10.92 0.61 5.49 0.34 3.88
Andover Bancorp, Inc. MA ANDB 7.56 1.01 13.19 0.97 12.72
Ameriana Bancorp IN ASBI 11.08 0.86 7.55 0.92 7.38
ASB Financial Corp. OH ASBP 22.7 1.09 4.76 1.01 4.3
Astoria Financial Corporation NY ASFC 6.55 0.68 8.28 0.74 8.56
AmTrust Capital Corp. IN ATSB 10.24 0.46 4.46 0.31 2.75
Avondale Financial Corp. IL AVND 9.92 0.64 6.22 0.62 5.81
BankAtlantic Bancorp, Inc. FL BANC 6.66 1.28 15.89 1.12 15.74
First Federal Bancorporation MN BDJI 13.26 0.79 5.8 0.7 4.74
BostonFed Bancorp, Inc. MA BFD 11.43 0.62 4.98 0.49 4.66
Bedford Bancshares, Inc. VA BFSB 15.22 1.42 9.12 1.29 7.96
BFS Bankorp, Inc. NY BFSI 7.83 1.69 21.29 1.84 24.09
American Bank of Connecticut CT BKC 8.09 1.27 14.6 1.24 13.7
Bankers Corp. NJ BKCO 9.62 1.31 13.3 1.13 11.42
Bancorp Connecticut, Inc. CT BKCT 10.56 1.2 11.13 1.18 10.7
BankUnited Financial Corp. FL BKUNA 9.1 0.42 5.01 1.12 14.68
Bank Plus Corp. CA BPLS NA 0.08 1.33 -1.74 -30.56
Bridgeville Savings Bank PA BRFC 28.51 1.21 4.24 1.24 4.17
Branford Savings Bank CT BSBC 8.75 0.96 10.97 0.86 10
Bay View Capital Corp. CA BVFS 5.41 0.54 8.23 0.06 0.85
Bank West Financial Corp. MI BWFC 19.78 0.78 3.95 0.69 3.41
Broadway Financial Corp. CA BYFC 12.2 0.39 4.64 0.41 6.78
Camco Financial Corporation OH CAFI 8.33 1.34 16.46 1.22 15.56
Cal Fed Bancorp, Inc. CA CAL 4.86 1.02 21.74 0.82 14.79
Capital Savings Bancorp, Inc. MO CAPS 10.43 0.92 8.68 0.95 8.96
Carver Federal Savings Bank NY CARV 9.2 0.29 3.05 0.21 2.15
Cascade Financial Corp. WA CASB 6.21 0.81 12.79 0.56 8.9
First Midwest Financial, Inc. IA CASH 10.74 1.09 9.16 1.06 8.14
Catskill Financial Corp. NY CATB 12.75 0.93 7.39 NA NA
Calumet Bancorp, Inc. IL CBCI 16.08 1.53 9.23 1.31 7.85
- --------------------------------------------------------------------------------
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
---------------------
Total Current Current Current
Assets Stock Market ---------------------
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- ----------- ----- ------ ----- --- ---- --- ---
=============================================================================================================
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
=============================================================================================================
CB Bancorp, Inc. IN CBCO 195658 17.25 20.27 104.93 104.93
Community Bank Shares IN CBIN 223914 13.75 27.28 107 107
Citizens First Financial Corp. IL CBK 232196 10.5 29.58 NA NA
Community Bankshares, Inc. NH CBNH 546725 18.563 44.98 119.07 119.07
Coastal Bancorp, Inc. TX CBSA 2796568 17.75 88.08 93.97 113.56
Charter Financial, Inc. IL CBSB 300812 11 51.98 84.94 87.16
CCF Holding Company GA CCFH 78772 12.375 13.99 83.67 83.67
Central Co-Operative Bank MA CEBK 310949 17 33.41 107.46 123.19
CENFED Financial Corp. CA CENF 2148344 22.75 114.67 106.96 107.21
Commercial Federal Corporation NE CFB 6607670 38.25 577.18 139.65 154.92
Coastal Financial Corp. SC CFCP 452809 20 68.73 248.76 248.76
Center Financial Corporation CT CFCX 4018341 24.563 368.79 157.66 168.01
Community Financial Corp. VA CFFC 158835 21.5 27.35 122.65 122.65
California Financial Holding CA CFHC 1327178 21.875 102.56 117.99 118.69
CFSB Bancorp, Inc. MI CFSB 791610 20.125 89.89 138.13 138.13
Community Federal Bancorp MS CFTP 201650 13 60.17 90.47 90.47
CFX Corporation NH CFX 1025771 13.25 100.25 107.99 120.35
Community Investors Bancorp OH CIBI 85785 15.375 10.78 90.82 90.82
Central Jersey Financial NJ CJFC 468272 32.375 86.39 155.35 166.71
CKF Bancorp, Inc. KY CKFB 58763 19.5 19.39 113.31 113.31
Classic Bancshares, Inc. KY CLAS 66083 12.125 16.04 82.26 82.26
Cameron Financial Corp MO CMRN 172484 14 39.9 80.97 80.97
Commonwealth Bancorp, Inc. PA CMSB 1657690 10.5 188.23 NA NA
Community Savings, MHC FL CMSV 632507 16 77.9 104.23 104.23
CENIT Bancorp, Inc. VA CNIT 655771 32.688 52.74 110.51 114.61
CNS Bancorp, Inc. MO CNSB 85390 11.75 19.42 NA NA
Covenant Bank for Savings NJ CNSK 354822 12.5 24.5 144.51 144.51
Collective Bancorp, Inc. NJ COFD 5145471 24 488.98 134.23 143.8
Charter One Financial OH COFI 13951846 36.25 1631.6 174.61 188.9
Cooperative Bankshares, Inc. NC COOP 316654 17.25 25.73 87.25 98.85
Circle Financial Corp. OH CRCL 229406 37 26.2 107.22 123.62
Crazy Woman Creek Bancorp WY CRZY 50324 10.125 10.71 69.3 69.3
Coast Savings Financial CA CSA 8350710 33 613.26 142.67 144.93
CSB Financial Group, Inc. IL CSBF 41211 9.125 9.44 74.19 74.19
Center Banks Incorporated NY CTBK 220373 13.5 12.75 82.27 82.27
CitFed Bancorp, Inc. OH CTZN 2661006 37.75 214.85 122.56 140.6
Chester Valley Bancorp Inc. PA CVAL 274575 18.5 29.04 116.28 116.28
CitiSave Financial Corp LA CZF 76128 13.875 13.39 97.3 97.37
Damen Financial Corp. IL DFIN 235320 11.25 42.19 78.45 78.45
Dime Financial Corp. CT DIBK 688993 15.375 78.44 138.76 145.46
Dime Community Bancorp, Inc. NY DIME 1371821 12.625 183.66 86.18 99.33
Dime Bancorp, Inc. NY DME 19544289 13 1382.01 139.34 140.69
------------------------------
Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ----------- ----- ------ --- --- --- --- ---
=====================================================================================================
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
=====================================================================================================
CB Bancorp, Inc. IN CBCO 10.36 7.7 8.21 0 9.87
Community Bank Shares IN CBIN 12.18 14.32 NA 2.47 11.38
Citizens First Financial Corp. IL CBK NA NA NA 0 6.79
Community Bankshares, Inc. NH CBNH 8.23 9.28 10.73 3.23 6.94
Coastal Bancorp, Inc. TX CBSA 3.15 7.4 8.29 2.25 3.4
Charter Financial, Inc. IL CBSB 18.19 13.1 NA 2.18 21.41
CCF Holding Company GA CCFH 17.76 18.2 NA 3.23 21.23
Central Co-Operative Bank MA CEBK 10.74 NM 26.56 0 10
CENFED Financial Corp. CA CENF 5.34 9.64 10.11 1.58 4.99
Commercial Federal Corporation NE CFB 8.74 9.19 10.25 1.05 6.25
Coastal Financial Corp. SC CFCP 15.18 14.71 16.13 2.2 6.1
Center Financial Corporation CT CFCX 9.18 11.37 13.42 1.14 5.82
Community Financial Corp. VA CFFC 17.22 12.5 13.27 2.42 14.04
California Financial Holding CA CFHC 7.73 9.11 14.3 2.01 6.55
CFSB Bancorp, Inc. MI CFSB 11.36 12.58 12.66 2.39 8.22
Community Federal Bancorp MS CFTP 29.84 16.25 NA 2.31 32.99
CFX Corporation NH CFX 9.77 9.74 10.86 0 9.05
Community Investors Bancorp OH CIBI 12.57 13.25 12.2 2.6 13.84
Central Jersey Financial NJ CJFC 18.45 16.86 16.52 3.46 11.88
CKF Bancorp, Inc. KY CKFB 32.99 27.08 25.66 2.26 27.29
Classic Bancshares, Inc. KY CLAS 24.26 37.89 NA 0 29.51
Cameron Financial Corp MO CMRN 23.13 17.5 NA 2 26.54
Commonwealth Bancorp, Inc. PA CMSB NA NA NA 2.37 8.31
Community Savings, MHC FL CMSV 12.32 15.38 16 5 11.82
CENIT Bancorp, Inc. VA CNIT 8.04 11.19 17.57 2.45 7.28
CNS Bancorp, Inc. MO CNSB NA NA NA 0 10.75
Covenant Bank for Savings NJ CNSK 6.9 14.2 15.63 0 6.93
Collective Bancorp, Inc. NJ COFD 9.5 8.33 8.99 4.17 7.08
Charter One Financial OH COFI 11.69 10.07 31.8 2.54 6.7
Cooperative Bankshares, Inc. NC COOP 8.13 22.7 30.26 0 9.31
Circle Financial Corp. OH CRCL 11.42 23.72 25.69 1.84 10.65
Crazy Woman Creek Bancorp WY CRZY 21.28 18.08 NA 1.98 30.71
Coast Savings Financial CA CSA 7.34 20.12 15.35 0 5.15
CSB Financial Group, Inc. IL CSBF 22.92 25.35 NA 0 30.89
Center Banks Incorporated NY CTBK 5.78 12.05 10.47 1.78 7.03
CitFed Bancorp, Inc. OH CTZN 8.07 11.1 12.71 0.85 6.59
Chester Valley Bancorp Inc. PA CVAL 10.64 11.28 12.01 2.38 9.15
CitiSave Financial Corp LA CZF 17.58 15.08 NA 2.16 16.73
Damen Financial Corp. IL DFIN 18.97 17.58 NA 2.13 24.18
Dime Financial Corp. CT DIBK 11.38 6.41 7.25 2.08 8.2
Dime Community Bancorp, Inc. NY DIME 13.39 NA NA 0 15.53
Dime Bancorp, Inc. NY DME 7.07 12.04 18.06 0 5.08
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------- ----- ------ --- --- --- --- ---
================================================================================================================
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
================================================================================================================
CB Bancorp, Inc. IN CBCO 9.87 1.41 14.85 1.38 14.64
Community Bank Shares IN CBIN 11.38 0.87 7.12 0.91 7.91
Citizens First Financial Corp. IL CBK 6.79 0.57 8.39 0.43 6.49
Community Bankshares, Inc. NH CBNH 6.94 0.95 13.21 0.81 11.11
Coastal Bancorp, Inc. TX CBSA 2.83 0.43 12.81 0.4 11.69
Charter Financial, Inc. IL CBSB 20.97 1.35 7.02 1.11 7.88
CCF Holding Company GA CCFH 21.23 0.95 4.46 0.85 5.07
Central Co-Operative Bank MA CEBK 8.84 -0.22 -2.23 0.38 3.94
CENFED Financial Corp. CA CENF 4.98 0.58 11.54 0.55 11.33
Commercial Federal Corporation NE CFB 5.67 0.96 15.52 0.84 14.74
Coastal Financial Corp. SC CFCP 6.1 1.1 18.12 1.04 17.09
Center Financial Corporation CT CFCX 5.48 0.83 14.1 0.73 12.12
Community Financial Corp. VA CFFC 14.04 1.38 9.96 1.31 9.62
California Financial Holding CA CFHC 6.51 0.89 13.41 0.57 8.53
CFSB Bancorp, Inc. MI CFSB 8.22 0.95 11.45 0.96 11.7
Community Federal Bancorp MS CFTP 32.99 1.68 5.08 1.29 6.12
CFX Corporation NH CFX 8.19 1.04 11.31 1 10.23
Community Investors Bancorp OH CIBI 13.84 0.93 6.5 1.01 6.98
Central Jersey Financial NJ CJFC 11.16 1.13 9.53 1.13 10.41
CKF Bancorp, Inc. KY CKFB 27.29 1.16 4.15 1.24 4.39
Classic Bancshares, Inc. KY CLAS 29.51 0.62 2.11 0.46 2.18
Cameron Financial Corp MO CMRN 26.54 1.33 4.77 1.6 5.72
Commonwealth Bancorp, Inc. PA CMSB 7.37 0.69 7.71 0.78 8.41
Community Savings, MHC FL CMSV 11.82 0.83 6.77 0.84 6.62
CENIT Bancorp, Inc. VA CNIT 7.03 0.75 10.39 0.48 6.67
CNS Bancorp, Inc. MO CNSB 10.75 NA NA 0.22 2.14
Covenant Bank for Savings NJ CNSK 6.93 0.75 10.69 0.76 9.79
Collective Bancorp, Inc. NJ COFD 6.64 1.14 16.22 1.07 15.71
Charter One Financial OH COFI 6.22 1.22 17.8 0.42 6.39
Cooperative Bankshares, Inc. NC COOP 8.31 0.38 4.03 0.29 3.14
Circle Financial Corp. OH CRCL 9.37 0.51 4.67 0.49 4.32
Crazy Woman Creek Bancorp WY CRZY 30.71 1.08 3.49 NA NA
Coast Savings Financial CA CSA 5.07 0.37 7.3 0.49 9.9
CSB Financial Group, Inc. IL CSBF 30.89 0.78 2.51 0.84 4.03
Center Banks Incorporated NY CTBK 7.03 0.48 6.83 0.57 8.15
CitFed Bancorp, Inc. OH CTZN 5.79 0.78 11.58 0.71 10.2
Chester Valley Bancorp Inc. PA CVAL 9.15 0.94 10.25 0.91 10.03
CitiSave Financial Corp LA CZF 16.72 1.05 5.7 1.21 6.68
Damen Financial Corp. IL DFIN 24.18 1 4.15 NA NA
Dime Financial Corp. CT DIBK 7.86 1.79 22.47 1.64 21.02
Dime Community Bancorp, Inc. NY DIME 13.76 0.5 3.23 0.62 4.32
Dime Bancorp, Inc. NY DME 5.03 0.59 11.72 0.38 7.94
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
Total Current Current
Assets Stock Market
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- -------------------------------------------------------------------------------------------------------------
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
- -------------------------------------------------------------------------------------------------------------
D & N Financial Corp. MI DNFC 1364024 12.875 97.4 125 126.72
DS Bancor, Inc. CT DSBC 1257432 36.75 111.41 132.24 136.46
Downey Financial Corp. CA DSL 4712294 23.125 392.5 100.15 101.87
Eastern Bancorp NH EBCP 840534 17.938 65.5 100.95 106.9
Eagle Bancshares GA EBSI 611512 15.75 71.7 125.4 125.4
Enterprise Federal Bancorp OH EFBI 203431 12.75 26.38 84.49 84.66
Eagle Financial Corp. CT EGFC 1402417 24.875 112.35 109.77 150.3
Eagle BancGroup, Inc. IL EGLB 150974 11.688 15.23 NA NA
Equitable Federal Savings Bank MD EQSB 267776 25 15 105.75 105.75
Elmira Savings Bank (The) NY ESBK 223165 16.5 11.65 83.84 87.77
Essex Bancorp, Inc. VA ESX 315568 2 2.1 25.91 NM
East Texas Financial Services TX ETFS 114961 15 17.01 79.32 79.32
First Bell Bancorp, Inc. PA FBBC 570649 13.875 107.64 97.44 97.44
Fidelity Bancorp, Inc. IL FBCI 456896 16 46.89 94.17 94.51
1ST Bancorp IN FBCV 263483 29 19.33 88.96 88.96
1st Bergen Bancorp NJ FBER 252173 9.875 31.34 72.24 72.24
Fort Bend Holding Corp. TX FBHC 254739 17 13.93 77.34 77.34
First Bancshares, Inc. MO FBSI 140471 16 20.3 87.62 87.82
Falmouth Co-Operative Bank MA FCB 88498 10.875 15.82 72.74 72.74
FCB Financial Corp. WI FCBF 255660 17.75 43.66 94.52 94.52
First Citizens Financial Corp. MD FCIT 624118 17.125 49.92 127.32 127.32
First Defiance Financial OH FDEF 520666 10.188 106.29 83.92 83.92
FirstFed Financial Corp. CA FED 4104854 17.75 186.53 98.83 100.51
First Essex Bancorp, Inc. MA FESX 842903 11.125 67.26 107.9 107.9
First Colorado Bancorp, Inc. CO FFBA 1501330 14 281.88 115.04 116.38
First Federal Bancshares of AR AR FFBH 466101 13.5 69.58 NA NA
First Financial Bancorp, Inc. IL FFBI 88615 15.5 7.31 92.98 92.98
FFBS BanCorp, Inc. MS FFBS 123553 19.75 31.06 120.21 120.21
First Federal Bancorp, Inc. OH FFBZ 177778 23.5 18.44 139.55 139.71
First Financial Holdings Inc. SC FFCH 1523224 20.25 129.14 132.7 132.7
FFD Financial Corp. OH FFDF 76159 10.375 15.09 NA NA
FirstFed Bancshares IL FFDP 635096 16.5 56.09 102.36 107.21
First Fed Bncshrs Eau Claire WI FFEC 706672 15 102.83 105.49 109.81
Fidelity Federal Bancorp IN FFED 280138 10.75 26.82 188.6 188.6
First Federal of East Hartford CT FFES 947807 17.625 45.77 80.3 80.52
FFVA Financial Corp. VA FFFC 522811 17 88.08 100.71 102.84
North Central Bancshares, Inc. IA FFFD 194283 11.5 46.13 82.73 82.73
F.F.O. Financial Group, Inc. FL FFFG 305683 2.625 22.13 120.41 120.41
Fidelity FSB of Florida, MHC FL FFFL 791897 12.25 82.32 100.57 101.83
First Financial Corp. WI FFHC 5579294 23 687.82 168.62 176.79
FSF Financial Corp. MN FFHH 331395 11.5 39.99 73.81 73.81
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ------------------------------------------------------------------------------------------------------
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
- ------------------------------------------------------------------------------------------------------
D & N Financial Corp. MI DNFC 7.14 7.85 7.36 0 5.79
DS Bancor, Inc. CT DSBC 8.86 12.09 13.03 0.65 6.7
Downey Financial Corp. CA DSL 8.33 12.3 12.11 2.08 8.32
Eastern Bancorp NH EBCP 7.79 13.19 11.35 3.12 7.72
Eagle Bancshares GA EBSI 11.72 11.93 10.29 3.81 9.35
Enterprise Federal Bancorp OH EFBI 13.07 13.28 12.75 0 15.47
Eagle Financial Corp. CT EGFC 8.01 10.03 6.93 3.7 7.3
Eagle BancGroup, Inc. IL EGLB NA NA NA 0 7.63
Equitable Federal Savings Bank MD EQSB 5.6 7.35 7.96 0 5.3
Elmira Savings Bank (The) NY ESBK 5.22 37.5 33.67 3.88 6.23
Essex Bancorp, Inc. VA ESX 0.67 12.5 NM 0 7.32
East Texas Financial Services TX ETFS 15.57 19.74 16.3 1.33 19.63
First Bell Bancorp, Inc. PA FBBC 19.86 11.19 12.61 1.44 20.37
Fidelity Bancorp, Inc. IL FBCI 10.26 14.29 16.33 1.5 10.9
1ST Bancorp IN FBCV 7.34 13.94 3.36 1.38 8.25
1st Bergen Bancorp NJ FBER 12.43 NA NA 0 17.21
Fort Bend Holding Corp. TX FBHC 5.47 10.63 9.55 1.65 7.07
First Bancshares, Inc. MO FBSI 14.83 16.67 17.78 1.25 16.92
Falmouth Co-Operative Bank MA FCB 17.88 22.66 NA 0 24.57
FCB Financial Corp. WI FCBF 17.44 16.44 17.57 4.06 18.46
First Citizens Financial Corp. MD FCIT 8 12.59 12.88 0 6.28
First Defiance Financial OH FDEF 20.41 15.92 NA 2.75 24.32
FirstFed Financial Corp. CA FED 4.54 13.87 19.51 0 4.6
First Essex Bancorp, Inc. MA FESX 7.98 7.95 8.43 4.32 7.4
First Colorado Bancorp, Inc. CO FFBA 18.77 13.46 NA 2.29 16.32
First Federal Bancshares of AR AR FFBH NA NA NA 0 7.78
First Financial Bancorp, Inc. IL FFBI 8.25 129.17 13.72 0 8.88
FFBS BanCorp, Inc. MS FFBS 25.14 17.63 18.46 2.53 19.56
First Federal Bancorp, Inc. OH FFBZ 10.37 8.64 10.13 1.87 7.89
First Financial Holdings Inc. SC FFCH 8.48 10.77 11.57 3.16 6.39
FFD Financial Corp. OH FFDF NA NA NA 1.93 10.9
FirstFed Bancshares IL FFDP 8.83 51.56 17.74 2.42 8.63
First Fed Bncshrs Eau Claire WI FFEC 14.55 15.63 17.44 1.87 13.79
Fidelity Federal Bancorp IN FFED 9.57 13.44 8.53 7.44 5.08
First Federal of East Hartford CT FFES 4.83 8.01 9.28 3.4 6.01
FFVA Financial Corp. VA FFFC 16.85 13.28 14.05 2.35 15.58
North Central Bancshares, Inc. IA FFFD 23.74 11.06 NA 2.17 28.69
F.F.O. Financial Group, Inc. FL FFFG 7.24 65.63 17.5 0 6.02
Fidelity FSB of Florida, MHC FL FFFL 10.4 13.92 16.78 4.9 10.24
First Financial Corp. WI FFHC 12.33 9.91 9.79 2.61 7.31
FSF Financial Corp. MN FFHH 12.07 13.69 20.18 4.35 14.37
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
- ----------------------------------------------------------------------------------------------------------------
D & N Financial Corp. MI DNFC 5.71 1.01 17.23 1.08 19.53
DS Bancor, Inc. CT DSBC 6.51 0.78 11.56 0.72 10.98
Downey Financial Corp. CA DSL 8.19 0.68 8.1 0.69 8.44
Eastern Bancorp NH EBCP 7.32 0.63 8.14 0.72 9.6
Eagle Bancshares GA EBSI 9.35 0.86 10.69 0.98 13.09
Enterprise Federal Bancorp OH EFBI 15.44 0.91 5.88 1.03 5.52
Eagle Financial Corp. CT EGFC 5.44 0.83 11.37 1.27 17.56
Eagle BancGroup, Inc. IL EGLB 7.63 NA NA -0.05 -0.68
Equitable Federal Savings Bank MD EQSB 5.3 0.81 15.35 0.78 14.98
Elmira Savings Bank (The) NY ESBK 5.97 0.14 2.21 0.15 2.4
Essex Bancorp, Inc. VA ESX 4.8 0.71 10.57 0.32 6.11
East Texas Financial Services TX ETFS 19.63 0.74 3.81 0.89 4.58
First Bell Bancorp, Inc. PA FBBC 20.37 1.64 7.93 1.62 7.34
Fidelity Bancorp, Inc. IL FBCI 10.87 0.76 6.42 0.74 5.88
1ST Bancorp IN FBCV 8.25 0.52 6.42 2.05 29.45
1st Bergen Bancorp NJ FBER 17.21 0.77 4.59 NA NA
Fort Bend Holding Corp. TX FBHC 7.07 0.65 9.12 0.7 9.62
First Bancshares, Inc. MO FBSI 16.9 0.82 4.79 0.79 4.42
Falmouth Co-Operative Bank MA FCB 24.57 0.79 3.21 NA NA
FCB Financial Corp. WI FCBF 18.46 1.06 5.58 1.03 5.37
First Citizens Financial Corp. MD FCIT 6.28 0.7 11.04 0.71 11.36
First Defiance Financial OH FDEF 24.32 1.28 5.16 1.21 3.29
FirstFed Financial Corp. CA FED 4.53 0.33 7.08 0.23 4.98
First Essex Bancorp, Inc. MA FESX 7.4 1.03 13.63 0.99 13.34
First Colorado Bancorp, Inc. CO FFBA 16.16 1.32 8.09 1.09 8.16
First Federal Bancshares of AR AR FFBH 7.78 0.82 10.54 NA NA
First Financial Bancorp, Inc. IL FFBI 8.88 0.06 0.61 0.7 6.53
FFBS BanCorp, Inc. MS FFBS 19.56 1.43 7.13 1.32 4.5
First Federal Bancorp, Inc. OH FFBZ 7.88 1.32 16.84 1.14 15.12
First Financial Holdings Inc. SC FFCH 6.39 0.81 12.53 0.78 11.81
FFD Financial Corp. OH FFDF 10.9 0.88 7.34 0.87 6.92
FirstFed Bancshares IL FFDP 8.27 0.18 2.04 0.58 6.32
First Fed Bncshrs Eau Claire WI FFEC 13.32 0.89 6.38 0.87 5.7
Fidelity Federal Bancorp IN FFED 5.08 0.83 15.62 1.29 25.83
First Federal of East Hartford CT FFES 6 0.63 10.37 0.57 8.65
FFVA Financial Corp. VA FFFC 15.31 1.32 8.13 1.24 7.51
North Central Bancshares, Inc. IA FFFD 28.69 2.09 7.27 1.64 8.13
F.F.O. Financial Group, Inc. FL FFFG 6.02 0.07 1.21 0.45 6.83
Fidelity FSB of Florida, MHC FL FFFL 10.13 0.76 7.34 0.65 6.23
First Financial Corp. WI FFHC 7 1.29 17.41 1.31 18.55
FSF Financial Corp. MN FFHH 14.37 0.82 5.49 0.64 3.79
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
Total Current Current
Assets Stock Market
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- -------------------------------------------------------------------------------------------------------------
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
- -------------------------------------------------------------------------------------------------------------
First Franklin Corporation OH FFHS 216508 14.5 16.9 83.29 84.16
Flushing Financial Corp NY FFIC 766632 18.125 156.33 113.35 113.35
First Federal Financial Corp. KY FFKY 352671 21.5 90.48 181.13 193.87
FFLC Bancorp, Inc. FL FFLC 332087 18.375 48.12 85.31 85.31
First Family Financial Corp. FL FFML 159049 21.5 11.72 131.26 131.26
Fidelity Financial of Ohio OH FFOH 251188 10 40.74 79.74 79.74
First Palm Beach Bancorp, Inc. FL FFPB 1438024 21.375 110.75 97.47 99.98
Florida First Bancorp, Inc. FL FFPC 302689 11.125 37.65 176.31 176.31
Fidelity Financial Bankshares VA FFRV 325814 13 29.79 106.38 106.47
First Independence Corp. KS FFSL 105771 18.5 10.79 82.7 82.7
FirstFederal Financial Svcs OH FFSW 1044608 30 107.51 198.81 245.1
First Fed SB of Siouxland, MHC IA FFSX 443632 25 42.68 115.79 116.93
FFW Corp. IN FFWC 148892 19.5 14.41 89.61 89.61
Wood Bancorp, Inc. OH FFWD 139718 13.094 20.19 99.65 99.65
First Financial-W. Maryland MD FFWM 326489 22.5 48.98 120.32 120.32
FFY Financial Corp. OH FFYF 573162 24 121.95 118.52 118.52
First Georgia Holding, Inc. GA FGHC 144022 6.25 12.65 105.57 118.6
Financial Bancorp, Inc. NY FIBC 262497 14.75 26.49 101.03 NA
First Indiana Corporation IN FISB 1473094 23.125 191.81 141.01 142.92
First Keystone Financial PA FKFS 278204 16.75 21.65 93.94 93.94
Frankfort First Bancorp, Inc. KY FKKY 138616 11.25 38.81 81.11 81.11
FLAG Financial Corp. GA FLAG 225960 12 24.1 111.63 111.63
First Liberty Financial Corp. GA FLFC 981694 21 84.05 124.7 148.51
First Lancaster Bancshares KY FLKY 33812 14.125 13.54 NA NA
First Mutual Bancorp, Inc. IL FMBD 301690 12.75 52.61 75.76 75.76
FMS Financial Corporation NJ FMCO 517943 15.875 39.17 114.13 116.99
Farmers & Mechanics Bank CT FMCT 536955 30.75 51.09 171.31 171.31
Family Bancorp MA FMLY 925239 25.75 108.54 155.12 168.74
First Mutual Savings Bank WA FMSB 370986 14 34.25 139.03 139.03
First Northern Capital Corp. WI FNGB 580128 15.375 67.57 95.5 95.5
Financial Security Corp. IL FNSC 258452 26 40.32 101.21 101.21
Fed One Bancorp WV FOBC 343028 14 35.81 83.68 88.22
First Republic Bancorp CA FRC 2064209 13 95.59 83.55 83.66
First Savings Bank, FSB NM FSBC 115492 5.625 3.91 71.56 71.56
Fidelity Bancorp, Inc. PA FSBI 317315 16.25 22.25 103.31 103.83
First Ashland Financial Corp KY FSBS 86860 17.875 26.15 110.68 110.68
First Southeast Financial Corp SC FSFC 326573 9.438 41.42 123.05 123.05
First State Financial Services NJ FSFI 628684 13.375 53.83 125.12 132.03
First Savings Bank, MHC NJ FSLA 959356 15.75 102.56 112.66 129.84
First Savings Bk of NJ, MHC NJ FSNJ 651945 14.063 43.07 86.97 86.97
First Home Bancorp, Inc. NJ FSPG 479314 17.75 36.03 116.85 119.77
First FS&LA of San Bernardino CA FSSB 103288 10 3.28 56.34 59
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ------------------------------------------------------------------------------------------------------
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
- ------------------------------------------------------------------------------------------------------
First Franklin Corporation OH FFHS 7.8 13.43 13.55 2.21 9.37
Flushing Financial Corp NY FFIC 20.39 22.66 NA 0 17.99
First Federal Financial Corp. KY FFKY 25.66 17.92 16.54 2.23 14.16
FFLC Bancorp, Inc. FL FFLC 14.49 14.82 15.71 2.18 16.98
First Family Financial Corp. FL FFML 7.37 8.27 8.37 0.74 5.61
Fidelity Financial of Ohio OH FFOH 16.22 15.63 NA 2 20.34
First Palm Beach Bancorp, Inc. FL FFPB 7.7 10.08 11.19 1.87 7.9
Florida First Bancorp, Inc. FL FFPC 12.44 13.91 13.73 2.16 7.05
Fidelity Financial Bankshares VA FFRV 9.14 8.55 9.49 1.54 8.6
First Independence Corp. KS FFSL 10.2 11.01 10.05 2.16 12.34
FirstFederal Financial Svcs OH FFSW 10.29 12.5 15.31 1.6 7.93
First Fed SB of Siouxland, MHC IA FFSX 9.62 12.76 13.97 2.88 8.31
FFW Corp. IN FFWC 9.68 9.2 11.47 3.08 10.8
Wood Bancorp, Inc. OH FFWD 14.54 12.59 12.47 1.83 14.6
First Financial-W. Maryland MD FFWM 15.08 12.5 34.62 2.13 12.53
FFY Financial Corp. OH FFYF 21.75 18.75 17.78 2.5 18.35
First Georgia Holding, Inc. GA FGHC 8.78 9.77 10.78 0 8.3
Financial Bancorp, Inc. NY FIBC 10.09 12.72 17.15 2.03 9.99
First Indiana Corporation IN FISB 13.02 10.32 11.34 2.42 9.24
First Keystone Financial PA FKFS 7.78 10.47 15.8 0 8.28
Frankfort First Bancorp, Inc. KY FKKY 28 21.63 NA 3.2 34.51
FLAG Financial Corp. GA FLAG 10.67 10.71 12.24 2.83 9.56
First Liberty Financial Corp. GA FLFC 8.52 9.37 9.91 2.48 7.6
First Lancaster Bancshares KY FLKY NA NA NA 0 13.73
First Mutual Bancorp, Inc. IL FMBD 17.44 22.77 NA 2.2 23.02
FMS Financial Corporation NJ FMCO 7.56 9.02 9.74 1.26 6.63
Farmers & Mechanics Bank CT FMCT 9.51 12.4 153.75 0 5.55
Family Bancorp MA FMLY 11.73 16.09 13.7 1.86 7.56
First Mutual Savings Bank WA FMSB 9.23 9.46 9.86 1.43 6.64
First Northern Capital Corp. WI FNGB 11.65 14.78 16.18 3.9 12.2
Financial Security Corp. IL FNSC 15.6 24.07 19.55 0 15.42
Fed One Bancorp WV FOBC 10.44 10.94 11.29 3.86 12.01
First Republic Bancorp CA FRC 4.63 9.85 12.87 0 5.55
First Savings Bank, FSB NM FSBC 3.39 46.88 NA 0 4.74
Fidelity Bancorp, Inc. PA FSBI 7.01 9.23 11.95 1.97 6.79
First Ashland Financial Corp KY FSBS 30.11 26.29 NA 0 27.21
First Southeast Financial Corp SC FSFC 12.68 NM 31.46 1.7 10.31
First State Financial Services NJ FSFI 8.56 41.8 13.93 1.65 6.84
First Savings Bank, MHC NJ FSLA 10.69 11.93 13.02 2.54 9.49
First Savings Bk of NJ, MHC NJ FSNJ 6.61 13.02 66.97 3.56 7.6
First Home Bancorp, Inc. NJ FSPG 7.52 8.22 8.26 2.7 6.43
First FS&LA of San Bernardino CA FSSB 3.18 NM NM 0 5.64
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
- ----------------------------------------------------------------------------------------------------------------
First Franklin Corporation OH FFHS 9.28 0.61 6.46 0.62 6.56
Flushing Financial Corp NY FFIC 17.99 0.88 4.78 0.94 6.33
First Federal Financial Corp. KY FFKY 13.36 1.46 10.32 1.6 11.28
FFLC Bancorp, Inc. FL FFLC 16.98 0.96 5.65 0.94 5.51
First Family Financial Corp. FL FFML 5.61 0.91 16.2 0.9 17.04
Fidelity Financial of Ohio OH FFOH 20.34 1.01 4.94 0.87 5.6
First Palm Beach Bancorp, Inc. FL FFPB 7.72 0.75 9.51 0.74 8.92
Florida First Bancorp, Inc. FL FFPC 7.05 0.88 12.49 0.9 13.27
Fidelity Financial Bankshares VA FFRV 8.59 1.06 12.35 1 12.03
First Independence Corp. KS FFSL 12.34 0.93 7.5 1.1 8.51
FirstFederal Financial Svcs OH FFSW 6.93 1.33 16.8 1.12 13.85
First Fed SB of Siouxland, MHC IA FFSX 8.23 0.76 8.99 0.7 8.44
FFW Corp. IN FFWC 10.8 1.07 9.65 0.9 8.07
Wood Bancorp, Inc. OH FFWD 14.6 1.15 7.95 1.17 8.14
First Financial-W. Maryland MD FFWM 12.53 1.19 9.78 0.43 3.56
FFY Financial Corp. OH FFYF 18.35 1.1 6.03 1.21 6.5
First Georgia Holding, Inc. GA FGHC 7.46 0.91 11.04 0.88 10.61
Financial Bancorp, Inc. NY FIBC NA 0.79 7.61 0.66 5.76
First Indiana Corporation IN FISB 9.12 1.33 14.47 1.19 13.57
First Keystone Financial PA FKFS 8.28 0.71 8.22 0.48 5.49
Frankfort First Bancorp, Inc. KY FKKY 34.51 1.16 3.35 1.06 3.82
FLAG Financial Corp. GA FLAG 9.56 1.04 11.1 0.92 9.91
First Liberty Financial Corp. GA FLFC 6.58 1.05 13.35 1.03 13.14
First Lancaster Bancshares KY FLKY 13.73 NA NA 1.5 11.24
First Mutual Bancorp, Inc. IL FMBD 23.02 0.77 3.2 0.98 3.8
FMS Financial Corporation NJ FMCO 6.48 0.87 13.16 0.83 12.68
Farmers & Mechanics Bank CT FMCT 5.55 0.78 13.48 0.07 1.12
Family Bancorp MA FMLY 6.99 0.74 9.81 0.9 11.79
First Mutual Savings Bank WA FMSB 6.64 1.02 15.45 1.03 15.31
First Northern Capital Corp. WI FNGB 12.2 0.82 6.62 0.78 6.12
Financial Security Corp. IL FNSC 15.42 0.64 4.33 0.77 5.46
Fed One Bancorp WV FOBC 11.46 0.96 7.99 1 7.93
First Republic Bancorp CA FRC 5.54 0.6 10.61 0.46 7.94
First Savings Bank, FSB NM FSBC 4.74 0.08 1.66 0.31 6.81
Fidelity Bancorp, Inc. PA FSBI 6.76 0.79 11.35 0.65 8.66
First Ashland Financial Corp KY FSBS 27.21 1.02 3.8 0.96 3.61
First Southeast Financial Corp SC FSFC 10.31 -1.35 -7.42 0.31 1.61
First State Financial Services NJ FSFI 6.51 0.2 2.86 0.63 9.27
First Savings Bank, MHC NJ FSLA 8.34 0.92 9.66 0.87 9.48
First Savings Bk of NJ, MHC NJ FSNJ 7.6 0.5 6.42 0.11 1.2
First Home Bancorp, Inc. NJ FSPG 6.28 0.93 14.4 0.97 14.89
First FS&LA of San Bernardino CA FSSB 5.4 -0.42 -7.33 -0.17 -2.9
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
Total Current Current
Assets Stock Market
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- -------------------------------------------------------------------------------------------------------------
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
- -------------------------------------------------------------------------------------------------------------
Texarkana First Financial Corp AR FTF 163391 15.5 30.75 91.28 91.28
First Federal Capital Corp. WI FTFC 1382069 20.5 127.74 136.39 144.88
Fort Thomas Financial Corp. KY FTSB 87960 13.75 21.64 101.25 101.25
First SB of Washington Bancorp WA FWWB 743176 16.125 162.5 105.39 105.39
GA Financial, Inc. PA GAF 562351 11.5 102.35 79.7 79.7
Glacier Bancorp, Inc. MT GBCI 408467 21 70.58 183.41 183.57
Greater Delaware Valley SB,MHC PA GDVS 235877 9.5 31.09 107.22 107.22
Golden West Financial CA GDW 35775375 57.75 3345.09 141.61 150.39
Glenway Financial Corp. OH GFCO 273890 20 22.91 86.51 88.61
Guaranty Federal SB, MHC MO GFED 185546 10.25 32.03 117.95 117.95
GFS Bancorp, Inc. IA GFSB 83305 20.5 10.45 105.02 105.02
Glendale Co-Operative Bank MA GLBK 36677 16.5 4.08 70.3 70.3
Glendale Federal Bank, FSB CA GLN 14456564 18 841.13 120.24 129.68
GreenPoint Financial Corp. NY GPT 14150594 34 1697.42 101.04 180.85
Grove Bank MA GROV 590405 29.5 45.5 121.1 121.25
Greater New York Savings Bank NY GRTR 2540811 11.25 150.62 103.4 103.4
Great Southern Bancorp, Inc. MO GSBC 658997 27.5 121.59 182.85 185.94
Green Street Financial Corp. NC GSFC 178965 12.875 55.34 88.18 88.18
Guaranty Financial Corp. VA GSLC 102967 7.25 6.66 104.62 104.62
Great Financial Corporation KY GTFN 2808092 26.75 379.41 138.03 143.43
Great American Bancorp IL GTPS 120540 13.25 24.51 73.78 73.78
GFSB Bancorp, Inc. NM GUPB 70422 14 13.28 81.92 81.92
Gateway Bancorp, Inc. KY GWBC 71260 13 14.72 83.12 83.12
Great Western Financial CA GWF 43719958 24.625 3383.29 133.18 151.35
Hallmark Capital Corp. WI HALL 377157 15.25 21.55 81.46 81.46
Harbor Federal Savings Bk, MHC FL HARB 1014013 23.75 117.16 137.76 143.07
Harleysville Savings Bank PA HARL 298172 18.25 23.53 118.66 118.66
Harris Savings Bank, MHC PA HARS 1546469 15.5 173.85 114.39 135.73
Haven Bancorp, Inc. NY HAVN 1550275 26.875 116.1 123.45 124.19
Home Building Bancorp IN HBBI 43135 17.75 5.89 88.18 88.18
Home Bancorp IN HBFW 315901 16 44.68 94.34 94.34
Highland Federal Bank FSB CA HBNK 441911 14.75 33.87 97.81 97.81
Haywood Bancshares, Inc. NC HBS 134274 18.625 24.01 125.17 130.79
HF Bancorp, Inc. CA HEMT 826916 9.375 58.89 72.62 NA
Harrodsburg First Fin Bancorp KY HFFB 108710 16.5 36.01 106.52 106.52
HF Financial Corp. SD HFFC 574027 15.25 46.98 90.45 90.72
Harrington Financial Group IN HFGI 418196 10.25 33.38 144.37 144.37
Home Federal Corp. MD HFMD 219737 10.25 25.82 134.34 135.94
HFNC Financial Corp. NC HFNC 716277 16.5 283.68 116.12 116.12
Hardin Bancorp, Inc. MO HFSA 86949 11.25 10.83 76.27 76.27
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ------------------------------------------------------------------------------------------------------
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
- ------------------------------------------------------------------------------------------------------
Texarkana First Financial Corp AR FTF 18.82 10.2 NA 2.9 20.61
First Federal Capital Corp. WI FTFC 9.34 11.39 11.08 3.12 6.85
Fort Thomas Financial Corp. KY FTSB 24.6 21.48 NA 1.82 24.29
First SB of Washington Bancorp WA FWWB 21.86 18.32 NA 1.24 20.74
GA Financial, Inc. PA GAF 18.2 11.06 NA 1.74 22.84
Glacier Bancorp, Inc. MT GBCI 17.28 11.17 11.54 3.05 9.42
Greater Delaware Valley SB,MHC PA GDVS 13.18 26.39 27.14 3.79 12.29
Golden West Financial CA GDW 9.35 10.94 11.98 0.66 6.6
Glenway Financial Corp. OH GFCO 8.36 16.13 15.04 3.24 9.67
Guaranty Federal SB, MHC MO GFED 17.26 8.54 NA 6.24 14.64
GFS Bancorp, Inc. IA GFSB 12.54 9.67 11.92 1.95 11.94
Glendale Co-Operative Bank MA GLBK 11.12 15.87 14.6 0 15.82
Glendale Federal Bank, FSB CA GLN 5.82 20.45 51.43 0 6.62
GreenPoint Financial Corp. NY GPT 12 10.24 13.65 2.35 10.36
Grove Bank MA GROV 7.71 8.68 9.39 2.44 6.36
Greater New York Savings Bank NY GRTR 5.93 16.54 14.42 0 7.9
Great Southern Bancorp, Inc. MO GSBC 18.5 9.82 11.55 2.55 10.12
Green Street Financial Corp. NC GSFC 30.92 NA NA 3.11 35.07
Guaranty Financial Corp. VA GSLC 6.47 8.63 8.84 1.38 6.19
Great Financial Corporation KY GTFN 13.51 14.54 16.11 1.79 9.79
Great American Bancorp IL GTPS 20.33 41.41 NA 3.02 27.55
GFSB Bancorp, Inc. NM GUPB 18.86 19.44 NA 2.86 23.03
Gateway Bancorp, Inc. KY GWBC 20.66 21.67 19.7 3.08 24.86
Great Western Financial CA GWF 7.74 11.84 11.73 4.06 6.48
Hallmark Capital Corp. WI HALL 5.71 9.78 11.47 0 7.16
Harbor Federal Savings Bk, MHC FL HARB 11.55 10.42 10.8 5.05 8.39
Harleysville Savings Bank PA HARL 7.89 9.31 10.74 2.19 6.65
Harris Savings Bank, MHC PA HARS 11.24 15.5 20.39 3.74 9.82
Haven Bancorp, Inc. NY HAVN 7.49 9.74 11.2 2.23 6.07
Home Building Bancorp IN HBBI 13.65 16.44 30.08 1.69 13.94
Home Bancorp IN HBFW 14.62 15.38 18.18 1.25 15.5
Highland Federal Bank FSB CA HBNK 7.66 14.18 23.05 0 7.84
Haywood Bancshares, Inc. NC HBS 17.88 16.06 17.57 2.79 14.28
HF Bancorp, Inc. CA HEMT 7.12 33.48 28.41 0 9.8
Harrodsburg First Fin Bancorp KY HFFB 33.12 25.78 NA 2.42 28.66
HF Financial Corp. SD HFFC 8.12 8.47 11.13 2.36 8.97
Harrington Financial Group IN HFGI 7.98 85.42 17.98 0 5.53
Home Federal Corp. MD HFMD 11.75 12.2 16.53 0 8.75
HFNC Financial Corp. NC HFNC 39.61 25.78 NA 0 34.12
Hardin Bancorp, Inc. MO HFSA 13.1 14.06 NA 3.56 17.17
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
- ----------------------------------------------------------------------------------------------------------------
Texarkana First Financial Corp AR FTF 20.61 1.73 8.41 1.77 10.8
First Federal Capital Corp. WI FTFC 6.48 0.89 12.58 0.92 13.46
Fort Thomas Financial Corp. KY FTSB 24.29 1.03 4.2 1.29 5.55
First SB of Washington Bancorp WA FWWB 20.74 1.32 5.74 1.11 6.62
GA Financial, Inc. PA GAF 22.84 1.5 6.59 0.78 5.9
Glacier Bancorp, Inc. MT GBCI 9.41 1.57 16.5 1.59 16.4
Greater Delaware Valley SB,MHC PA GDVS 12.29 0.49 4.08 0.48 3.98
Golden West Financial CA GDW 6.24 0.87 13.03 0.81 12.46
Glenway Financial Corp. OH GFCO 9.46 0.53 5.53 0.56 5.82
Guaranty Federal SB, MHC MO GFED 14.64 2.02 14.02 1.02 7.11
GFS Bancorp, Inc. IA GFSB 11.94 1.33 11.14 1.16 9.19
Glendale Co-Operative Bank MA GLBK 15.82 0.72 4.46 0.77 4.23
Glendale Federal Bank, FSB CA GLN 6.24 0.51 7.79 0.28 4.43
GreenPoint Financial Corp. NY GPT 6.07 1.05 10.01 0.89 7.42
Grove Bank MA GROV 6.36 0.92 14.51 0.87 13.91
Greater New York Savings Bank NY GRTR 7.9 0.66 8.53 0.73 9.63
Great Southern Bancorp, Inc. MO GSBC 9.97 1.98 19.63 1.74 17.18
Green Street Financial Corp. NC GSFC 35.07 1.78 7.37 NA NA
Guaranty Financial Corp. VA GSLC 6.19 0.79 12.35 0.68 10.91
Great Financial Corporation KY GTFN 9.45 1.01 9.55 1 8.68
Great American Bancorp IL GTPS 27.55 0.58 2.03 0.68 2.46
GFSB Bancorp, Inc. NM GUPB 23.03 0.93 3.95 1.25 4.87
Gateway Bancorp, Inc. KY GWBC 24.86 0.94 3.76 1.05 4.05
Great Western Financial CA GWF 5.83 0.73 11.28 0.72 11.6
Hallmark Capital Corp. WI HALL 7.16 0.62 8.31 0.6 7.17
Harbor Federal Savings Bk, MHC FL HARB 8.1 1.16 13.43 1.18 13.57
Harleysville Savings Bank PA HARL 6.65 0.91 13.35 0.81 11.83
Harris Savings Bank, MHC PA HARS 8.41 0.74 7.21 0.66 5.64
Haven Bancorp, Inc. NY HAVN 6.03 0.8 12.8 0.74 11.42
Home Building Bancorp IN HBBI 13.94 0.77 5.46 0.41 2.86
Home Bancorp IN HBFW 15.5 0.9 5.64 0.84 4.99
Highland Federal Bank FSB CA HBNK 7.84 0.54 7 0.22 3.92
Haywood Bancshares, Inc. NC HBS 13.76 1.11 7.79 1.01 6.66
HF Bancorp, Inc. CA HEMT NA 0.2 1.86 0.26 2.31
Harrodsburg First Fin Bancorp KY HFFB 28.66 1.15 4.02 NA NA
HF Financial Corp. SD HFFC 8.95 1.02 11.15 0.78 8.68
Harrington Financial Group IN HFGI 5.53 0.08 1.73 0.37 9.49
Home Federal Corp. MD HFMD 8.65 0.98 11.33 0.73 8.36
HFNC Financial Corp. NC HFNC 34.12 1.26 4.23 NA NA
Hardin Bancorp, Inc. MO HFSA 17.17 0.92 5.06 0.76 4.25
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
------------------------------
Current Price in Relation To
Total Current Current ------------------------------
Assets Stock Market Book Tg Bk
(Most Rec QTR) Price Value Value Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- -------------------------------------------------------------------------------------------------------------
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
- -------------------------------------------------------------------------------------------------------------
Harvest Home Financial Corp. OH HHFC 73005 12 10.74 83.1 83.1
Hingham Instit. for Savings MA HIFS 186724 14.625 18.98 104.09 104.09
HomeCorp, Inc. IL HMCI 338985 18 20.31 96.15 96.15
HMN Financial, Inc. MN HMNF 542012 15.25 68.73 86.94 86.94
Hinsdale Financial Corp. IL HNFC 662482 23.875 64.23 115.79 119.32
Home Financial Corp. FL HOFL 1215712 13.875 342.94 107.89 107.89
Home Federal Bancorp IN HOMF 630015 26.25 58.44 113.44 117.77
Home Port Bancorp, Inc. MA HPBC 180451 14 25.79 134.23 134.23
Harbor Federal Bancorp, Inc. MD HRBF 201030 12.625 22.15 79.7 79.7
Horizon Financial Corp. WA HRZB 493499 13 85.73 107.26 107.26
Hibernia Savings Bank, (The) MA HSBK 372978 14.75 24.52 98.93 98.93
Hawthorne Financial Corp. CA HTHR 761162 8.75 22.74 65.84 66.14
Haverfield Corporation OH HVFD 334226 19.25 36.7 129.19 129.46
Home Financial Bancorp IN HWEN 39426 12 6.07 NA NA
Horizon Financial Svcs Corp. IA HZFS 73464 14 6.27 74.75 74.75
IBS Financial Corp. NJ IBSF 748745 14 154.03 103.32 103.32
Independence Federal Savings DC IFSB 263735 7.25 9.27 54.88 63.76
Indiana Federal Corporation IN IFSL 717720 18.875 89.42 126.85 136.58
Industrial Bancorp OH INBI 313563 10.125 56.24 92.47 92.47
Indiana Community Bank, SB IN INCB 94476 13.75 12.68 89.58 89.58
Ipswich Savings Bank MA IPSW 150962 9.875 11.64 133.81 133.81
Iroquois Bancorp NY IROQ 470710 15 35.35 123.56 137.99
ISB Financial Corporation LA ISBF 623720 15 105.77 91.63 91.69
Imperial Thrift and Loan CA ITLA 655435 13.5 105.58 137.06 137.06
InterWest Bancorp, Inc. WA IWBK 1413926 25 161.26 167.34 172.06
Jefferson Bancorp, Inc. LA JEBC 265594 22.5 49.4 137.03 137.03
Joachim Bancorp, Inc. MO JOAC 36779 13.25 10.08 93.71 93.71
Jefferson Savings Bancorp MO JSBA 1114294 23.75 99.31 110 133.43
JSB Financial, Inc. NY JSBF 1548328 33.063 341.65 101.11 101.11
Jacksonville Savings Bank, MHC IL JXSB 143044 13.25 16.86 99.55 99.55
Jacksonville Bancorp, Inc. TX JXVL 213062 10.625 28.23 NA NA
Klamath First Bancorp OR KFBI 604663 13.625 146.55 91.44 91.44
Kankakee Bancorp, Inc. IL KNK 359171 19.5 27.96 78.76 84.75
KS Bancorp, Inc. NC KSAV 93536 20 13.27 95.88 95.97
KSB Bancorp, Inc. ME KSBK 132533 20.453 8.41 92.97 100.41
Kentucky First Bancorp, Inc. KY KYF 83981 14.625 20.31 102.34 102.34
Landmark Bancshares, Inc. KS LARK 200469 15.25 29.19 88.3 88.3
Laurel Capital Group, Inc. PA LARL 193008 15.375 23.22 112.55 112.55
Liberty Bancorp, Inc. IL LBCI 651198 23.75 58.83 91.91 92.16
L & B Financial, Inc. TX LBFI 143223 16.625 26.34 107.26 107.26
Little Falls Bancorp, Inc. NJ LFBI 282232 10.25 31.18 71.18 77.18
Leader Financial Corp. TN LFCT 3211064 47.5 472.52 177.37 177.37
Leeds Federal Savings Bk, MHC MD LFED 266658 13 44.82 102.77 102.77
Life Bancorp, Inc. VA LIFB 1240520 14.875 146.47 100.98 104.9
Long Island Bancorp, Inc. NY LISB 5221019 27.875 691.45 132.55 132.55
Horizon Bancorp TX LOAN 130930 15.75 21.84 204.81 211.69
Logansport Financial Corp. IN LOGN 77195 13.125 17.36 87.56 87.56
London Financial Corporation OH LONF 37552 10.5 5.55 NA NA
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ------------------------------------------------------------------------------------------------------
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
- ------------------------------------------------------------------------------------------------------
Harvest Home Financial Corp. OH HHFC 14.71 21.43 18.75 3.33 17.71
Hingham Instit. for Savings MA HIFS 10.16 9.62 9.95 2.46 9.76
HomeCorp, Inc. IL HMCI 5.99 12.86 15.65 0 6.23
HMN Financial, Inc. MN HMNF 14.58 11.55 12.92 0 16.77
Hinsdale Financial Corp. IL HNFC 9.7 14.92 15.4 0 8.37
Home Financial Corp. FL HOFL 28.21 NM 21.35 5.77 24.81
Home Federal Bancorp IN HOMF 9.28 8.41 8.15 1.91 8.18
Home Port Bancorp, Inc. MA HPBC 14.29 8.54 8.54 5.71 10.65
Harbor Federal Bancorp, Inc. MD HRBF 11.02 15.78 22.95 3.17 13.82
Horizon Financial Corp. WA HRZB 17.37 11.21 11.5 3.08 16.2
Hibernia Savings Bank, (The) MA HSBK 6.57 8.58 11.17 1.9 6.64
Hawthorne Financial Corp. CA HTHR 2.99 2.04 NA 0 6.06
Haverfield Corporation OH HVFD 10.98 14.58 14.92 2.81 8.5
Home Financial Bancorp IN HWEN NA NA NA 0 8.65
Horizon Financial Svcs Corp. IA HZFS 8.54 10.94 16.67 2.29 11.42
IBS Financial Corp. NJ IBSF 20.57 19.44 19.18 1.71 19.91
Independence Federal Savings DC IFSB 3.52 10.66 7.25 3.03 6.4
Indiana Federal Corporation IN IFSL 12.46 13.88 12.34 3.82 9.82
Industrial Bancorp OH INBI 17.94 10.55 NA 2.96 19.39
Indiana Community Bank, SB IN INCB 13.42 24.55 19.64 2.55 14.98
Ipswich Savings Bank MA IPSW 7.71 8.51 7.21 2.03 5.76
Iroquois Bancorp NY IROQ 7.51 8.33 9.15 2.13 7.07
ISB Financial Corporation LA ISBF 17.75 14.42 NA 2.13 19.37
Imperial Thrift and Loan CA ITLA 12.32 9.12 NA 0 8.99
InterWest Bancorp, Inc. WA IWBK 11.41 10.42 11.26 2.08 6.81
Jefferson Bancorp, Inc. LA JEBC 18.6 18.15 18.75 1.33 13.58
Joachim Bancorp, Inc. MO JOAC 27.39 47.32 NA 3.77 29.23
Jefferson Savings Bancorp MO JSBA 8.91 11.88 13.42 1.35 7.28
JSB Financial, Inc. NY JSBF 22.07 14.76 16.13 3.63 21.83
Jacksonville Savings Bank, MHC IL JXSB 11.79 22.08 25 3.02 11.84
Jacksonville Bancorp, Inc. TX JXVL NA NA NA 4.71 16.7
Klamath First Bancorp OR KFBI 25.36 16.22 NA 1.91 27.73
Kankakee Bancorp, Inc. IL KNK 7.78 12.19 15.35 2.05 9.88
KS Bancorp, Inc. NC KSAV 14.18 11.9 14.39 3 14.79
KSB Bancorp, Inc. ME KSBK 6.34 6.73 6.96 0.98 6.82
Kentucky First Bancorp, Inc. KY KYF 24.18 15.9 NA 3.42 23.63
Landmark Bancshares, Inc. KS LARK 14.56 15.25 16.22 2.62 16.49
Laurel Capital Group, Inc. PA LARL 12.02 8.94 9.26 2.86 10.68
Liberty Bancorp, Inc. IL LBCI 9.03 19.15 17.86 2.53 9.83
L & B Financial, Inc. TX LBFI 18.39 19.79 18.89 2.41 17.14
Little Falls Bancorp, Inc. NJ LFBI 11.05 17.08 NA 0.98 15.52
Leader Financial Corp. TN LFCT 14.72 8.86 10.87 1.52 8.3
Leeds Federal Savings Bk, MHC MD LFED 16.81 14.13 16.25 4.92 16.35
Life Bancorp, Inc. VA LIFB 12.11 13.28 15.34 2.96 11.99
Long Island Bancorp, Inc. NY LISB 13.24 14.83 14.91 1.44 9.99
Horizon Bancorp TX LOAN 16.68 15.14 14.72 1.02 8.55
Logansport Financial Corp. IN LOGN 22.49 15.63 15.44 3.05 25.68
London Financial Corporation OH LONF NA NA NA 0 20.86
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
- ----------------------------------------------------------------------------------------------------------------
Harvest Home Financial Corp. OH HHFC 17.71 0.63 3.47 0.8 4.31
Hingham Instit. for Savings MA HIFS 9.76 1.07 10.68 1.1 10.64
HomeCorp, Inc. IL HMCI 6.23 0.48 7.86 0.4 6.66
HMN Financial, Inc. MN HMNF 16.77 1.18 6.88 1.1 6.27
Hinsdale Financial Corp. IL HNFC 8.15 0.68 8.27 0.63 8.18
Home Financial Corp. FL HOFL 24.81 -0.11 -0.42 1.23 4.78
Home Federal Bancorp IN HOMF 7.9 1.16 13.97 1.23 15.14
Home Port Bancorp, Inc. MA HPBC 10.65 1.75 15.97 1.79 15.72
Harbor Federal Bancorp, Inc. MD HRBF 13.82 0.64 4.58 0.56 3.19
Horizon Financial Corp. WA HRZB 16.2 1.53 9.46 1.54 9.56
Hibernia Savings Bank, (The) MA HSBK 6.64 0.77 11.71 0.61 9.15
Hawthorne Financial Corp. CA HTHR 6.04 3.11 54.91 0.61 12.77
Haverfield Corporation OH HVFD 8.48 0.77 8.86 0.71 8.57
Home Financial Bancorp IN HWEN 8.65 0.71 7.69 0.82 8.77
Horizon Financial Svcs Corp. IA HZFS 11.42 0.76 6.64 0.53 4.38
IBS Financial Corp. NJ IBSF 19.91 0.98 4.89 1.05 4.99
Independence Federal Savings DC IFSB 5.56 0.33 5.09 0.49 7.71
Indiana Federal Corporation IN IFSL 9.19 0.91 9.27 1.02 10.75
Industrial Bancorp OH INBI 19.39 1.56 8.05 1.57 7.13
Indiana Community Bank, SB IN INCB 14.98 0.54 3.53 0.67 4.39
Ipswich Savings Bank MA IPSW 5.76 1.02 16.92 1.3 21.16
Iroquois Bancorp NY IROQ 6.48 0.99 14.18 0.96 13.57
ISB Financial Corporation LA ISBF 19.36 1.15 5.9 1.24 6.22
Imperial Thrift and Loan CA ITLA 8.99 1.42 15.5 NA NA
InterWest Bancorp, Inc. WA IWBK 6.64 1.14 16.51 1.11 15.69
Jefferson Bancorp, Inc. LA JEBC 13.58 0.98 7.26 0.94 7.22
Joachim Bancorp, Inc. MO JOAC 29.23 0.57 1.94 0.63 2.82
Jefferson Savings Bancorp MO JSBA 6.08 0.71 9.87 0.62 8.9
JSB Financial, Inc. NY JSBF 21.83 1.58 7.21 1.47 6.76
Jacksonville Savings Bank, MHC IL JXSB 11.84 0.55 4.58 0.48 4.16
Jacksonville Bancorp, Inc. TX JXVL 16.7 0.86 7.53 0.79 7.47
Klamath First Bancorp OR KFBI 27.73 1.6 5.72 1.34 6.64
Kankakee Bancorp, Inc. IL KNK 9.25 0.67 6.83 0.56 5.37
KS Bancorp, Inc. NC KSAV 14.78 1.27 8.51 1.11 6.88
KSB Bancorp, Inc. ME KSBK 6.35 0.91 13.28 0.89 13.42
Kentucky First Bancorp, Inc. KY KYF 23.63 1.49 5.97 1.12 5.27
Landmark Bancshares, Inc. KS LARK 16.49 0.96 5.71 0.93 5.45
Laurel Capital Group, Inc. PA LARL 10.68 1.38 13.09 1.35 13.23
Liberty Bancorp, Inc. IL LBCI 9.81 0.5 5.17 0.55 5.61
L & B Financial, Inc. TX LBFI 17.14 0.9 5.15 1.06 5.76
Little Falls Bancorp, Inc. NJ LFBI 14.49 0.6 3.88 NA NA
Leader Financial Corp. TN LFCT 8.3 1.71 21.04 1.48 18.45
Leeds Federal Savings Bk, MHC MD LFED 16.35 1.17 7.07 1.03 6.32
Life Bancorp, Inc. VA LIFB 11.6 0.88 7.05 0.87 6.25
Long Island Bancorp, Inc. NY LISB 9.99 0.89 8.71 0.93 8.78
Horizon Bancorp TX LOAN 8.29 1.32 13.96 1.47 16.04
Logansport Financial Corp. IN LOGN 25.68 1.47 5.62 1.5 5.55
London Financial Corporation OH LONF 20.86 0.89 5.76 NA NA
- --------------------------------------------------------------------------------
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
Total Current Current
Assets Stock Market
(Most Rec QTR) Price Value
Institution State Ticker ($000) ($) ($M)
- ----------- ----- ------ ------ ----- -----
==============================================================================================
Maximum 49,506,630 60.88 3,383.29
Minimum 27,596 1.47 2.10
Average 1,322,401 17.32 128.03
Median 338,985 15.75 37.76
==============================================================================================
LSB Financial Corp. IN LSBI 162520 16 14.68
Lawrence Savings Bank MA LSBX 332956 6 25.47
Lakeview Financial NJ LVSB 455155 21.125 47.86
Lexington B&L Financial Corp. MO LXMO 49981 9.875 12.49
MAF Bancorp, Inc. IL MAFB 3117149 25.25 261.1
Marion Capital Holdings IN MARN 177767 20 38.67
MASSBANK Corp. MA MASB 880534 32.625 88.74
Monterey Bay Bancorp, Inc. CA MBBC 318879 12.5 42.68
MBLA Financial Corp. MO MBLF 195074 21.25 29.15
Mitchell Bancorp, Inc. NC MBSP 27596 11 10.78
Mid-Coast Bancorp, Inc. ME MCBN 55048 20.25 4.65
Mid Continent Bancshares Inc. KS MCBS 313759 18.625 37.84
Medford Savings Bank MA MDBK 993467 22 99.69
Mechanics Savings Bank CT MECH 727720 12 63.48
Meritrust Federal SB LA MERI 228419 31.5 24.39
MFB Corp. IN MFBC 210559 15.625 30.84
Marshalltown Financial Corp. IA MFCX 125308 16 22.58
Milton Federal Financial Corp. OH MFFC 178289 12.75 28.8
Mayflower Co-operative Bank MA MFLR 113182 15.75 13.75
Mutual Bancompany MO MFSB 53311 21.25 7.09
Maryland Federal Bancorp MD MFSL 1128449 28.875 88.94
Magna Bancorp, Inc. MS MGNL 1308657 41 280.91
MidConn Bank CT MIDC 367212 18.25 34.86
Mid-Iowa Financial Corp. IA MIFC 115260 6.375 10.73
Mississippi View Holding Co. MN MIVI 69983 11.25 9.06
MLF Bancorp, Inc. PA MLFB 1876018 25 148.36
Morgan Financial Corp. CO MORG 71654 12.25 10.2
MSB Bancorp, Inc. NY MSBB 840552 16 45.34
MSB Financial, Inc. MI MSBF 56317 17.25 11.31
Mutual Savings Bank, FSB MI MSBK 680033 5.125 21.91
Metropolitan Bancorp WA MSEA 761014 17.125 63.54
Midwest Bancshares, Inc. IA MWBI 138628 25 8.73
MetroWest Bank MA MWBX 490130 3.75 52.06
Midwest Federal Financial WI MWFD 178249 16 26.13
North American Savings Bank MO NASB 664250 29.938 68.14
North Bancshares, Inc. IL NBSI 119436 15.75 17.54
Northeast Bancorp ME NEBC 218187 13.125 15.91
Northeast Indiana Bancorp IN NEIB 154128 12.25 25.26
Newnan Savings Bank, FSB GA NFSL 160656 21 30.62
NHS Financial, Inc. CA NHSL 284191 11.25 28.38
-----------------------------------------------------------
Current Price in Relation To
-----------------------------------------------------------
Book Value Tg Bk Value Assets QTR EPS LTM EPS
Institution (%) (%) (%) (x) (x)
- ----------- --- --- --- --- ---
==================================================================================================
Maximum 249.50 260.82 39.61 218.75 153.75
Minimum 25.91 55.83 0.67 2.04 3.36
Average 108.53 112.78 12.45 16.38 16.16
Median 101.11 103.83 10.52 12.24 11.57
==================================================================================================
LSB Financial Corp. 82.47 82.47 9.5 10.81 12.31
Lawrence Savings Bank 100.84 100.84 7.65 6.25 6.82
Lakeview Financial 105.68 137.62 10.52 7.88 10.06
Lexington B&L Financial Corp. NA NA NA NA NA
MAF Bancorp, Inc. 107.81 126.38 8.38 9.15 9.15
Marion Capital Holdings 93.15 93.15 21.75 15.15 16.39
MASSBANK Corp. 102.95 102.95 10.08 9.48 9.98
Monterey Bay Bancorp, Inc. 82.73 83.72 13.38 31.25 62.5
MBLA Financial Corp. 102.76 102.76 14.94 20.43 22.14
Mitchell Bancorp, Inc. NA NA NA NA NA
Mid-Coast Bancorp, Inc. 93.45 93.45 8.45 10.77 14.57
Mid Continent Bancshares Inc. 98.34 98.44 12.06 10.12 10.58
Medford Savings Bank 112.82 123.73 10.03 10.19 10.38
Mechanics Savings Bank 93.02 93.02 8.72 NA NA
Meritrust Federal SB 140.63 140.63 10.68 11.41 11.33
MFB Corp. 81.85 81.85 14.65 17.76 22.01
Marshalltown Financial Corp. 115.44 115.44 18.02 28.57 50
Milton Federal Financial Corp. 85.51 85.51 16.19 18.75 17.47
Mayflower Co-operative Bank 126.81 129.63 12.15 14.58 15.14
Mutual Bancompany 113.64 113.64 13.29 NM 62.5
Maryland Federal Bancorp 96.41 97.95 8.09 12.24 10.42
Magna Bancorp, Inc. 223.31 236.04 21.47 13.14 13.67
MidConn Bank 99.84 118.97 9.49 13.42 26.45
Mid-Iowa Financial Corp. 99.3 99.45 9.31 7.59 10.63
Mississippi View Holding Co. 81.64 81.64 15.39 14.8 11.25
MLF Bancorp, Inc. 102.92 107.2 8.32 11.57 12.95
Morgan Financial Corp. 97.15 97.15 14.24 14.58 15.31
MSB Bancorp, Inc. 80.16 207.25 5.39 18.18 14.04
MSB Financial, Inc. 91.46 91.46 20.7 11.06 11.13
Mutual Savings Bank, FSB 56.76 56.76 3.22 128.13 NM
Metropolitan Bancorp 124.18 136.89 8.35 9.73 11.05
Midwest Bancshares, Inc. 94.48 94.48 6.3 7.72 6.98
MetroWest Bank 140.45 140.45 10.62 7.81 8.33
Midwest Federal Financial 156.71 164.27 14.66 12.12 13.91
North American Savings Bank 139.64 145.47 10.26 7.27 8.09
North Bancshares, Inc. 94.77 94.77 14.69 32.81 28.64
Northeast Bancorp 95.73 114.03 7.24 17.27 13.67
Northeast Indiana Bancorp 86.69 86.69 16.39 12.76 15.31
Newnan Savings Bank, FSB 163.3 164.32 18.91 10.29 10
NHS Financial, Inc. 113.41 113.64 9.99 15.63 21.63
Current Tangible Qtr Qtr LTM LTM
Dividend Equity/ Equity/ Return on Return on Return on Return on
Yield Assets Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution (%) (%) (%) (%) (%) (%) (%)
- ----------- --- --- --- --- --- --- ---
=================================================================================================================================
Maximum 7.44 35.07 35.07 3.11 54.91 2.30 38.10
Minimum 0.00 3.40 2.83 (3.28) (80.66) (1.74) (30.56)
Average 1.98 12.21 11.98 0.90 8.53 0.88 8.48
Median 2.08 9.81 9.36 0.88 7.81 0.86 7.47
=================================================================================================================================
LSB Financial Corp. 2 10.66 10.66 0.86 7.81 0.83 6.94
Lawrence Savings Bank 0 7.59 7.59 1.25 16.51 1.24 13.92
Lakeview Financial 1.18 9.95 7.82 1.35 12.79 1.15 10.25
Lexington B&L Financial Corp. 0 14.4 14.4 NA NA 1.17 8.36
MAF Bancorp, Inc. 1.27 7.77 6.7 0.87 13.26 0.85 14.21
Marion Capital Holdings 4 23.35 23.35 1.41 5.95 1.41 5.96
MASSBANK Corp. 2.94 9.79 9.79 1.1 11.02 1.06 10.4
Monterey Bay Bancorp, Inc. 0.8 14.98 14.83 0.39 2.68 0.19 1.28
MBLA Financial Corp. 1.88 14.54 14.54 0.73 5.11 0.7 4.83
Mitchell Bancorp, Inc. 0 22.02 22.02 NA NA 0.92 4.24
Mid-Coast Bancorp, Inc. 2.47 9.04 9.04 0.79 8.63 0.6 6.65
Mid Continent Bancshares Inc. 2.15 11.7 11.69 1.21 9.77 1.27 9.59
Medford Savings Bank 3.09 8.89 8.17 1.03 11.59 1.04 11.68
Mechanics Savings Bank 0 9.38 9.38 -3.28 -80.66 NA NA
Meritrust Federal SB 1.91 7.59 7.59 0.98 12.97 1.01 13.7
MFB Corp. 1.54 17.9 17.9 0.82 4.43 0.73 3.69
Marshalltown Financial Corp. 0 15.61 15.61 0.64 4.15 0.38 2.43
Milton Federal Financial Corp. 4.08 18.93 18.93 0.88 4.54 1.04 4.8
Mayflower Co-operative Bank 2.54 9.58 9.39 0.84 8.6 0.89 8.54
Mutual Bancompany 0 11.7 11.7 0.05 0.45 0.2 1.84
Maryland Federal Bancorp 2.22 8.39 8.27 0.67 8.02 0.79 9.6
Magna Bancorp, Inc. 2.93 9.61 9.14 1.68 17.3 1.71 17.31
MidConn Bank 3.29 9.51 8.1 0.71 7.48 0.37 3.87
Mid-Iowa Financial Corp. 1.26 9.38 9.36 1.28 13.87 0.93 10
Mississippi View Holding Co. 1.42 18.86 18.86 1.01 5.17 1.32 6.75
MLF Bancorp, Inc. 3.04 7.53 7.25 0.71 9.01 0.72 8.3
Morgan Financial Corp. 1.96 14.66 14.66 0.95 6.42 0.97 6.38
MSB Bancorp, Inc. 3.75 8.21 4.26 0.43 5.27 0.44 3
MSB Financial, Inc. 2.9 22.63 22.63 1.85 7.77 1.92 7.29
Mutual Savings Bank, FSB 0 5.68 5.68 0.01 0.24 0.01 0.18
Metropolitan Bancorp 0 6.72 6.14 0.85 12.85 0.78 11.41
Midwest Bancshares, Inc. 2.08 6.67 6.67 0.87 12.92 1.01 14.64
MetroWest Bank 2.67 7.55 7.55 1.34 17.32 1.3 17.23
Midwest Federal Financial 1.88 9.35 8.96 1.28 13.38 1.2 12.27
North American Savings Bank 2.09 7.35 7.07 1.43 19.05 1.33 18.15
North Bancshares, Inc. 2.54 15.5 15.5 0.45 2.76 0.59 3.19
Northeast Bancorp 2.44 8.48 7.36 0.56 6.48 0.68 7.97
Northeast Indiana Bancorp 2.45 18.9 18.9 1.25 6.41 1.19 5.46
Newnan Savings Bank, FSB 2.1 11.58 11.51 1.87 16.31 1.89 17.69
NHS Financial, Inc. 1.42 8.81 8.79 0.66 7.59 0.45 5.34
- -------------------------------------------------------------------------------
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
----------------------
Total Current Current Current
Assets Stock Market ----------------------
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- ----------- ----- ------ ----- --- ---- --- ---
=============================================================================================================
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
=============================================================================================================
New Hampshire Thrift Bncshrs NH NHTB 252481 9.875 16.71 85.94 85.94
NewMil Bancorp, Inc. CT NMSB 309363 7 28.49 89.29 89.29
North Side Savings Bank NY NSBK 1654624 44.188 213.6 172.95 174.52
NS&L Bancorp, Inc. MO NSLB 59052 12.5 11.1 80.03 80.03
Norwich Financial Corp. CT NSSB 731193 15.75 84.93 115.89 128.57
Norwalk Savings Society CT NSSY 609522 21.875 52.17 117.61 117.61
Nutmeg Federal S&LA CT NTMG 85194 8 5.66 102.04 102.04
Northwest Equity Corp. WI NWEQ 91804 10.25 9.69 76.21 76.21
Northwest Savings Bank, MHC PA NWSB 1877529 11.219 262.26 135.5 142.74
New York Bancorp Inc. NY NYB 2918120 28.5 327.52 206.82 206.82
Ocean Financial Corp. NJ OCFC 1036445 21.25 178.25 NA NA
Ottawa Financial Corp. MI OFCP 782145 16.125 87.31 108.66 135.5
OHSL Financial Corp. OH OHSL 209037 20.5 24.96 97.9 97.9
OSB Financial Corp. WI OSBF 250003 23 25.55 81.39 81.39
Palfed, Inc. SC PALM 638002 12.688 66.3 123.54 129.6
Pamrapo Bancorp, Inc. NJ PBCI 365553 18.625 61.11 108.1 109.05
People's Bank, MHC CT PBCT 7441500 22.25 885.84 154.3 154.51
Patriot Bank Corp. PA PBIX 417746 13.25 49.22 92.46 92.46
People's Bancshares, Inc. MA PBKB 533134 9.75 32.57 118.9 125.64
People's Savings Financial Cp. CT PBNB 437034 22.875 43.48 98.3 105.9
Perry County Financial Corp. MO PCBC 78480 15.5 13.28 84.38 84.38
Pacific Crest Capital CA PCCI 290443 9 26.64 113.78 113.78
Piedmont Bancorp, Inc. NC PDB 128711 13.25 35.05 94.58 94.58
Peekskill Financial Corp. NY PEEK 191323 12.25 50.22 84.02 84.02
Permanent Bancorp, Inc. IN PERM 395903 15.75 33.62 81.02 82.12
Primary Bank NH PETE 408086 12.25 23.93 95.63 95.93
Peoples Bancorp IN PFDC 277958 19.25 45.15 104.28 104.28
Park Bancorp, Inc. IL PFED 158939 10.25 27.69 NA NA
PFF Bancorp, Inc. CA PFFB 2146293 11.25 223.17 76.84 77.75
Progress Financial Corporation PA PFNC 347858 6.25 23.31 119.5 120.42
PennFed Financial Services,Inc NJ PFSB 1086524 17 82 82.93 104.1
Pocahontas FS&LA, MHC AR PFSL 369379 14.5 23.35 106.3 106.3
Peoples Heritage Finl Group ME PHBK 4371709 21.125 531.82 145.19 162.38
Pittsburgh Home Financial Corp PA PHFC 184002 10.5 22.91 75.38 75.38
Poughkeepsie Savings Bank, FSB NY PKPS 840491 5.125 64.32 90.71 90.71
Pinnacle Bank AL PLE 185793 17.125 15.24 100.09 103.79
Perpetual Midwest Financial IA PMFI 374039 17.5 35.17 97.98 97.98
Portsmouth Bank Shares NH POBS 266877 12.75 73.15 109.54 109.54
Prestige Bancorp, Inc. PA PRBC 102609 10.25 9.87 64.63 64.63
Provident Financial Holdings CA PROV 567186 10.75 55.1 NA NA
Prime Bancorp, Inc. PA PSAB 644560 19.5 72.64 125.16 133.47
Progressive Bank, Inc. NY PSBK 901690 29 76.76 106.85 122.99
Palm Springs Savings Bank CA PSSB 187327 13.938 15.76 131.49 131.49
Potters Financial Corp. OH PTRS 114714 15.5 7.85 74.06 74.06
Pulaski Bank, Savings Bk, MHC MO PULB 179406 13 27.22 120.15 120.15
------------------------------
Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ----------- ----- ------ --- --- --- --- ---
======================================================================================================
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
======================================================================================================
New Hampshire Thrift Bncshrs NH NHTB 6.61 11.76 11.9 5.06 7.69
NewMil Bancorp, Inc. CT NMSB 9.21 12.5 14 2.86 10.31
North Side Savings Bank NY NSBK 12.91 11.75 11.69 2.26 7.47
NS&L Bancorp, Inc. MO NSLB 18.79 22.32 NA 4 23.48
Norwich Financial Corp. CT NSSB 11.62 14.58 15.59 3.05 10.02
Norwalk Savings Society CT NSSY 8.56 9.11 12.29 0.91 7.28
Nutmeg Federal S&LA CT NTMG 6.65 12.5 13.56 0 6.51
Northwest Equity Corp. WI NWEQ 10.56 10.25 11.14 3.9 12.77
Northwest Savings Bank, MHC PA NWSB 13.97 14.02 14.57 2.85 10.15
New York Bancorp Inc. NY NYB 11.22 8.8 10.04 2.81 5.43
Ocean Financial Corp. NJ OCFC NA NA NA 0 8.91
Ottawa Financial Corp. MI OFCP 11.16 14.4 18.53 1.98 10.27
OHSL Financial Corp. OH OHSL 11.94 13.49 13.49 3.71 12.2
OSB Financial Corp. WI OSBF 10.22 14.02 46.94 2.78 12.56
Palfed, Inc. SC PALM 10.39 14.42 14.93 0.63 8.41
Pamrapo Bancorp, Inc. NJ PBCI 16.72 14.55 12.76 4.83 15.47
People's Bank, MHC CT PBCT 11.9 12.36 11.71 3.6 7.8
Patriot Bank Corp. PA PBIX 12.38 17.43 NA 2.42 12.93
People's Bancshares, Inc. MA PBKB 6.11 9.75 10.05 2.87 4.93
People's Savings Financial Cp. CT PBNB 9.95 9.22 11.44 4.02 10.12
Perry County Financial Corp. MO PCBC 16.92 17.61 16.32 1.94 20.05
Pacific Crest Capital CA PCCI 9.17 9 7.32 0 8.06
Piedmont Bancorp, Inc. NC PDB 27.23 16.56 NA 3.62 28.79
Peekskill Financial Corp. NY PEEK 26.25 17.01 NA 2.94 31.24
Permanent Bancorp, Inc. IN PERM 8.49 26.25 28.64 1.91 10.48
Primary Bank NH PETE 5.86 7.85 NM 0 6.14
Peoples Bancorp IN PFDC 16.24 10.94 11.26 2.91 15.58
Park Bancorp, Inc. IL PFED NA NA NA 0 11.03
PFF Bancorp, Inc. CA PFFB 10.4 21.63 NA 0 13.53
Progress Financial Corporation PA PFNC 6.7 13.02 7.02 1.28 5.61
PennFed Financial Services,Inc NJ PFSB 7.55 9.04 10.97 0 8.34
Pocahontas FS&LA, MHC AR PFSL 6.32 12.08 11.98 5.52 5.95
Peoples Heritage Finl Group ME PHBK 12.17 13.2 10.21 3.22 8.38
Pittsburgh Home Financial Corp PA PHFC 12.45 NA NA 1.91 16.52
Poughkeepsie Savings Bank, FSB NY PKPS 7.65 NM 4.79 1.95 8.44
Pinnacle Bank AL PLE 8.2 10.7 10.07 4.2 8.19
Perpetual Midwest Financial IA PMFI 9.44 20.83 23.65 1.71 9.64
Portsmouth Bank Shares NH POBS 27.41 12.75 12.62 4.71 25.02
Prestige Bancorp, Inc. PA PRBC 9.62 NA NA 0 14.88
Provident Financial Holdings CA PROV NA NA NA 0 6.58
Prime Bancorp, Inc. PA PSAB 11.27 11.34 12.04 3.49 9.01
Progressive Bank, Inc. NY PSBK 8.51 6.47 9.03 2.76 7.97
Palm Springs Savings Bank CA PSSB 8.41 12.02 13.03 0.86 6.4
Potters Financial Corp. OH PTRS 6.84 19.38 14.22 1.55 9.24
Pulaski Bank, Savings Bk, MHC MO PULB 15.17 16.25 17.81 6.15 12.63
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------- ----- ------ --- --- --- --- ---
================================================================================================================
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
================================================================================================================
New Hampshire Thrift Bncshrs NH NHTB 7.69 0.56 7.31 0.58 7.41
NewMil Bancorp, Inc. CT NMSB 10.31 0.81 7.44 0.75 6.71
North Side Savings Bank NY NSBK 7.4 1.17 15.31 1.19 15.97
NS&L Bancorp, Inc. MO NSLB 23.48 0.92 3.84 0.92 3.83
Norwich Financial Corp. CT NSSB 9.13 0.85 8.24 0.83 7.62
Norwalk Savings Society CT NSSY 7.28 0.99 12.69 0.81 9.66
Nutmeg Federal S&LA CT NTMG 6.51 0.74 11.55 0.66 10.75
Northwest Equity Corp. WI NWEQ 12.77 0.99 7.56 1 6.91
Northwest Savings Bank, MHC PA NWSB 9.69 0.99 9.5 1.01 9.47
New York Bancorp Inc. NY NYB 5.43 1.37 24.15 1.27 28.77
Ocean Financial Corp. NJ OCFC 8.91 NA NA 0.8 9.44
Ottawa Financial Corp. MI OFCP 8.41 0.77 7.13 0.91 5.72
OHSL Financial Corp. OH OHSL 12.2 0.93 7.54 0.95 7.55
OSB Financial Corp. WI OSBF 12.56 0.73 5.77 0.21 1.63
Palfed, Inc. SC PALM 8.05 0.72 8.51 0.69 8.33
Pamrapo Bancorp, Inc. NJ PBCI 15.36 1.14 7.34 1.34 8.52
People's Bank, MHC CT PBCT 7.79 1.02 12.86 1.13 14.14
Patriot Bank Corp. PA PBIX 12.93 0.71 4.99 0.63 4.91
People's Bancshares, Inc. MA PBKB 4.68 0.75 12.2 0.8 12.24
People's Savings Financial Cp. CT PBNB 9.46 1.17 10.99 0.97 8.89
Perry County Financial Corp. MO PCBC 20.05 0.91 4.44 1 4.86
Pacific Crest Capital CA PCCI 8.06 1.04 13.03 1.31 15.81
Piedmont Bancorp, Inc. NC PDB 28.79 1.52 5.19 1.46 6.69
Peekskill Financial Corp. NY PEEK 31.24 1.46 4.7 1.23 4.96
Permanent Bancorp, Inc. IN PERM 10.36 0.31 2.91 0.34 2.94
Primary Bank NH PETE 6.12 0.79 12.77 -0.03 -0.43
Peoples Bancorp IN PFDC 15.58 1.46 9.53 1.45 9.51
Park Bancorp, Inc. IL PFED 11.03 NA NA 0.65 5.46
PFF Bancorp, Inc. CA PFFB 13.4 0.47 3.34 NA NA
Progress Financial Corporation PA PFNC 5.57 0.53 9.44 0.91 18.78
PennFed Financial Services,Inc NJ PFSB 6.75 0.86 9.75 0.82 8.36
Pocahontas FS&LA, MHC AR PFSL 5.95 0.56 9.43 0.56 9.45
Peoples Heritage Finl Group ME PHBK 7.56 0.92 11.11 1.14 13.37
Pittsburgh Home Financial Corp PA PHFC 16.52 0.78 7.09 NA NA
Poughkeepsie Savings Bank, FSB NY PKPS 8.44 0.01 0.09 1.7 21.07
Pinnacle Bank AL PLE 7.93 0.75 9.69 0.79 10.34
Perpetual Midwest Financial IA PMFI 9.64 0.46 4.75 0.41 4.09
Portsmouth Bank Shares NH POBS 25.02 2.17 9.07 2.3 9.38
Prestige Bancorp, Inc. PA PRBC 14.88 0.33 2.23 NA NA
Provident Financial Holdings CA PROV 6.58 NA NA -0.72 -9.81
Prime Bancorp, Inc. PA PSAB 8.49 1.05 11.39 1.02 10.9
Progressive Bank, Inc. NY PSBK 7 1.32 16.6 1.1 12.3
Palm Springs Savings Bank CA PSSB 6.4 0.72 11.65 0.64 10.87
Potters Financial Corp. OH PTRS 9.24 0.36 3.77 0.51 3.27
Pulaski Bank, Savings Bk, MHC MO PULB 12.63 0.95 7.52 0.84 6.94
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
Total Current Current
Assets Stock Market
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
=============================================================================================================
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
=============================================================================================================
Pulse Bancorp NJ PGLS 505034 17.375 52.98 134.69 134.69
PVF Capital Corp. OH PVFC 318100 20.75 32.14 150.69 150.69
Parkvale Financial Corporation PA PVSA 919242 26.5 85.74 122.91 123.43
PennFirst Bancorp, Inc. PA PWBC 680434 13.875 54.65 103.78 113.92
Pennwood Savings Bank PA PWBK 42366 9.625 5.87 NA NA
Quaker City Bancorp, Inc. CA QCBC 725085 14.75 56.25 82.82 83.19
QCF Bancorp, Inc. MN QCFB 145608 14.75 23.67 82.77 82.77
Queens County Bancorp, Inc. NY QCSB 1302281 47.5 286.65 132.72 132.72
Raritan Bancorp Inc. NJ RARB 346841 20.625 29.34 117.19 120.19
RCSB Financial Inc. NY RCSB 4048684 24.5 304.02 119.69 123.93
RedFed Bancorp Inc. CA REDF 857959 9.25 37.76 77.73 77.73
Reliance Bancshares, Inc. WI RELI 32260 8.125 20.82 NA NA
Reliance Bancorp, Inc. NY RELY 1782550 16.875 154.05 100.27 147.9
Roosevelt Financial Group MO RFED 9327772 16.438 692.79 149.71 NA
TR Financial Corp. NY ROSE 3073458 28 249.63 120.64 120.64
Riverview Savings Bank, MHC WA RVSB 209506 15 32.33 140.06 158.23
Suburban Bancorporation, Inc. OH SBCN 197137 15.5 22.95 88.67 88.67
SB of the Finger Lakes, MHC NY SBFL 197438 16.25 29.01 143.68 143.68
S. Carolina Community Bancshrs SC SOCB 44088 16 11.96 95.24 95.24
Suncoast Savings and Loan FL SCSL 466504 6.625 13.18 100.53 100.99
Security Capital Corporation WI SECP 3437317 60.875 567.01 107.5 107.5
Standard Federal Bancorp MI SFB 15239983 41.625 1303.87 135.41 172.93
Security Bancorp MT SFBM 360021 21.5 31.44 97.86 113.64
SFS Bancorp, Inc. NY SFED 164366 12.75 16.48 73.96 73.96
StateFed Financial Corporation IA SFFC 76705 15.75 12.81 85.83 85.83
Statewide Financial Corp. NJ SFIN 634464 12 63.24 89.82 90.09
SuburbFed Financial Corp. IL SFSB 378388 17.5 22 84.46 84.95
Security First Corp. OH SFSL 588592 14.5 71.48 128.21 130.75
SGV Bancorp, Inc. CA SGVB 333064 8.75 22.67 73.28 73.28
First Shenango Bancorp, Inc. PA SHEN 369279 20.75 47.34 101.07 101.07
Seven Hills Financial Corp. OH SHFC 45511 17.5 9.39 97.28 97.28
SIS Bancorp, Inc. MA SISB 1209843 18.25 104.44 114.28 114.28
SJS Bancorp MI SJSB 150752 20 19.65 111.73 111.73
Southern Missouri Bancorp, Inc MO SMBC 161992 14.375 24.78 93.28 93.28
Sho-Me Financial Corp. MO SMFC 280027 16.75 29.02 85.5 85.5
Sobieski Bancorp, Inc. IN SOBI 76362 11.75 9.83 69.65 69.65
First Savings Bancorp, Inc. NC SOPN 256294 17.75 66.46 98.94 98.94
Somerset Savings Bank MA SOSA 511390 1.469 24.46 85.91 85.91
St. Paul Bancorp, Inc. IL SPBC 4337546 23.813 428.36 114.05 114.43
Southern Banc Company, Inc AL SRN 109768 12.75 18.55 83.22 NA
Scotland Bancorp, Inc NC SSB 70488 12 22.08 89.35 89.35
Strongsville Savings Bank OH SSBK 529187 21.875 55.36 130.13 132.82
Stone Street Bancorp, Inc. NC SSM 116101 16.625 30.34 NA NA
St. Francis Capital Corp. WI STFR 1329903 25.875 144.56 110.62 115.88
Standard Financial, Inc. IL STND 2274536 16.125 263.58 98.99 99.17
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
======================================================================================================
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
======================================================================================================
Pulse Bancorp NJ PGLS 10.49 12.07 12.59 4.03 7.79
PVF Capital Corp. OH PVFC 10.1 9.1 9.7 0 6.7
Parkvale Financial Corporation PA PVSA 9.33 9.6 9.27 1.96 7.59
PennFirst Bancorp, Inc. PA PWBC 8.15 13.88 14.16 2.6 7.85
Pennwood Savings Bank PA PWBK NA NA NA 0 9.63
Quaker City Bancorp, Inc. CA QCBC 7.76 13.66 16.03 0 9.37
QCF Bancorp, Inc. MN QCFB 18.06 11.17 NA 0 21.81
Queens County Bancorp, Inc. NY QCSB 22.01 10.8 12.43 2.81 16.58
Raritan Bancorp Inc. NJ RARB 8.48 11.21 12.2 2.91 7.24
RCSB Financial Inc. NY RCSB 7.51 11.34 11.4 1.96 8.63
RedFed Bancorp Inc. CA REDF 4.38 10.05 NM 0 5.63
Reliance Bancshares, Inc. WI RELI NA NA NA 0 29.81
Reliance Bancorp, Inc. NY RELY 8.64 10.55 12.88 2.73 8.62
Roosevelt Financial Group MO RFED 7.43 9.78 13.05 3.77 5.54
TR Financial Corp. NY ROSE 8.12 8.54 9.59 2.57 6.21
Riverview Savings Bank, MHC WA RVSB 15.43 9.87 12.3 1.47 11.00
Suburban Bancorporation, Inc. OH SBCN 11.64 NM 29.25 3.87 13.01
SB of the Finger Lakes, MHC NY SBFL 14.69 81.25 NA 2.46 10.23
S. Carolina Community Bancshrs SC SOCB 27.11 19.05 19.75 3.75 28.47
Suncoast Savings and Loan FL SCSL 2.83 16.56 13.52 0 5.43
Security Capital Corporation WI SECP 16.5 13.96 17.9 0.99 16.26
Standard Federal Bancorp MI SFB 8.56 9.82 10.48 1.92 6.32
Security Bancorp MT SFBM 8.73 12.8 13.27 2.98 8.92
SFS Bancorp, Inc. NY SFED 10.03 13.86 15.18 1.88 13.56
StateFed Financial Corporation IA SFFC 16.7 13.13 14.19 2.54 19.46
Statewide Financial Corp. NJ SFIN 9.97 12 NA 0 11.1
SuburbFed Financial Corp. IL SFSB 5.81 13.26 13.06 1.83 6.88
Security First Corp. OH SFSL 12.14 10.36 11.07 3.03 9.47
SGV Bancorp, Inc. CA SGVB 7.17 218.75 NA 0 9.78
First Shenango Bancorp, Inc. PA SHEN 12.82 13.3 13.65 2.31 12.68
Seven Hills Financial Corp. OH SHFC 20.63 48.61 58.33 2.06 21.21
SIS Bancorp, Inc. MA SISB 8.63 8.15 6.56 0 7.19
SJS Bancorp MI SJSB 13.04 27.78 21.74 2 11.67
Southern Missouri Bancorp, Inc MO SMBC 15.3 12.39 18.2 3.48 16.4
Sho-Me Financial Corp. MO SMFC 10.36 11.63 13.29 0 10.99
Sobieski Bancorp, Inc. IN SOBI 12.88 32.64 31.76 0 18.49
First Savings Bancorp, Inc. NC SOPN 25.93 17.75 18.68 3.38 26.21
Somerset Savings Bank MA SOSA 4.78 9.18 11.3 0 5.56
St. Paul Bancorp, Inc. IL SPBC 9.88 11.02 12.4 2.02 8.66
Southern Banc Company, Inc AL SRN 16.9 21.25 NA 2.75 20.31
Scotland Bancorp, Inc NC SSB 31.32 NA NA 2.5 35.05
Strongsville Savings Bank OH SSBK 10.46 11.16 11.39 2.19 8.04
Stone Street Bancorp, Inc. NC SSM NA NA NA 2.65 33.69
St. Francis Capital Corp. WI STFR 10.87 14.38 10.48 1.55 9.82
Standard Financial, Inc. IL STND 11.59 16.8 15.81 1.98 11.71
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
================================================================================================================
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
================================================================================================================
Pulse Bancorp NJ PGLS 7.79 1.16 10.56 1.19 10.28
PVF Capital Corp. OH PVFC 6.7 1.18 17.84 1.13 17.86
Parkvale Financial Corporation PA PVSA 7.56 1.01 13.8 1.06 15.11
PennFirst Bancorp, Inc. PA PWBC 7.2 0.61 7.37 0.61 7.46
Pennwood Savings Bank PA PWBK 9.63 0.71 7.35 NA NA
Quaker City Bancorp, Inc. CA QCBC 9.33 0.58 5.99 0.53 5.25
QCF Bancorp, Inc. MN QCFB 21.81 1.43 6.93 1.51 7.61
Queens County Bancorp, Inc. NY QCSB 16.58 1.99 11.87 1.82 10.45
Raritan Bancorp Inc. NJ RARB 7.07 0.86 11.44 0.82 10.69
RCSB Financial Inc. NY RCSB 8.42 0.94 10.71 1.01 10.78
RedFed Bancorp Inc. CA REDF 5.63 0.44 7.81 -0.56 -9.99
Reliance Bancshares, Inc. WI RELI NA NA NA 1.23 4.32
Reliance Bancorp, Inc. NY RELY 6.01 0.81 9.47 0.83 7.61
Roosevelt Financial Group MO RFED NA 0.84 15.39 0.64 12.31
TR Financial Corp. NY ROSE 6.21 0.96 15.23 0.92 13.93
Riverview Savings Bank, MHC WA RVSB 9.88 1.57 14.33 1.31 12.02
Suburban Bancorporation, Inc. OH SBCN 13.01 -0.41 -3.08 0.39 2.95
SB of the Finger Lakes, MHC NY SBFL 10.23 0.21 1.93 NA NA
S. Carolina Community Bancshrs SC SOCB 28.47 1.38 4.75 1.35 4.5
Suncoast Savings and Loan FL SCSL 5.42 0.48 7.9 0.51 8.77
Security Capital Corporation WI SECP 16.26 1.2 7.22 0.99 5.85
Standard Federal Bancorp MI SFB 5.02 0.97 14.36 0.95 14.09
Security Bancorp MT SFBM 7.78 0.71 7.92 0.69 8.01
SFS Bancorp, Inc. NY SFED 13.56 0.71 5.15 0.69 4.88
StateFed Financial Corporation IA SFFC 19.46 1.28 6.46 1.19 3.99
Statewide Financial Corp. NJ SFIN 11.07 0.87 10.43 NA NA
SuburbFed Financial Corp. IL SFSB 6.85 0.47 6.79 0.5 6.91
Security First Corp. OH SFSL 9.3 1.38 14.08 1.21 13.36
SGV Bancorp, Inc. CA SGVB 9.78 0.01 0.07 0.12 1.1
First Shenango Bancorp, Inc. PA SHEN 12.68 1 7.63 1.03 7.45
Seven Hills Financial Corp. OH SHFC 21.21 0.42 1.99 0.36 1.69
SIS Bancorp, Inc. MA SISB 7.19 1.05 14.72 1.38 19.41
SJS Bancorp MI SJSB 11.67 0.46 3.84 0.63 3
Southern Missouri Bancorp, Inc MO SMBC 16.4 1.13 6.84 0.87 4.98
Sho-Me Financial Corp. MO SMFC 10.99 0.88 7.66 0.85 6.89
Sobieski Bancorp, Inc. IN SOBI 18.49 0.38 2.06 0.42 2.24
First Savings Bancorp, Inc. NC SOPN 26.21 1.52 5.83 1.48 5.68
Somerset Savings Bank MA SOSA 5.56 0.5 8.97 0.42 7.83
St. Paul Bancorp, Inc. IL SPBC 8.63 0.96 10.76 0.91 9.81
Southern Banc Company, Inc AL SRN NA 0.74 3.66 0.54 3.96
Scotland Bancorp, Inc NC SSB 35.05 1.74 4.81 NA NA
Strongsville Savings Bank OH SSBK 7.89 0.96 11.8 0.99 11.84
Stone Street Bancorp, Inc. NC SSM 33.69 0.88 6.44 NA NA
St. Francis Capital Corp. WI STFR 9.42 0.78 7.79 1.18 10.78
Standard Financial, Inc. IL STND 11.69 0.69 5.72 0.81 6.06
EXHIBIT IV-1
ALL PUBLIC THRIFTS
SELECTED MARKET DATA
AS OF AUGUST 8, 1996
-----------------------------
Total Current Current Current Price in Relation to
Assets Stock Market -----------------------------
(Most Rec QTR) Price Value Book Value Tg Bk Value
Institution State Ticker ($000) ($) ($M) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------
Maximum 49,506,630 60.88 3,383.29 249.50 260.82
Minimum 27,596 1.47 2.10 25.91 55.83
Average 1,322,401 17.32 128.03 108.53 112.78
Median 338,985 15.75 37.76 101.11 103.83
- ---------------------------------------------------------------------------------------------------------------------
Sterling Financial Corp. WA STSA 1479643 14 75.97 127.16 156.95
Sovereign Bancorp, Inc. PA SVRN 9183447 10 495.73 129.03 190.11
Southwest Bancshares IL SWBI 356692 27.125 48.68 121.64 121.64
Sandwich Co-operative Bank MA SWCB 449889 20.5 38.56 104.11 110.87
SouthFirst Bancshares, Inc. AL SZB 88899 12.75 10.9 82.36 82.36
Tolland Bank CT TBK 217233 10.375 12.01 88.45 92.8
TCF Financial Corp. MN TCB 7000871 37.375 1306.65 249.5 260.82
Troy Hill Bancorp, Inc. PA THBC 80484 13.375 14.28 79.95 79.95
Third Financial Corp. OH THIR 155911 32.25 36.63 127.82 127.82
Three Rivers Financial Corp. MI THR 85138 12.625 10.85 83.22 83.61
TF Financial Corporation PA THRD 528910 14.125 60.7 78.6 78.6
Tappan Zee Financial, Inc. NY TPNZ 119167 13.25 20.58 95.74 95.74
Tri-County Bancorp, Inc. WY TRIC 76718 18.875 11.49 92.62 92.62
Trenton SB, MHC NJ TSBS 517363 13.75 122.55 122.44 125.23
Teche Holding Co. LA TSH 346115 13 50.32 89.59 89.59
Twin City Bancorp TN TWIN 102321 16.75 15.05 106.76 106.76
United Financial Corp. MT UBMT 104574 18.125 22.17 90.08 90.08
United Federal Savings Bank NC UFRM 252170 7.5 22.99 110.13 110.13
Virginia Beach Fed. Financial VA VABF 608832 7.5 37.24 90.36 90.36
Valley Federal Savings Bank AL VAFD 118625 31 11.37 118.5 118.5
Virginia First Financial VA VFFC 713931 12.25 68.79 124.87 129.49
Washington Mutual Inc. WA WAMU 22323472 35.25 2541.06 178.66 199.83
Wayne Savings & Loan Co. MHC OH WAYN 250266 19.75 29.54 127.42 127.42
WFS Bancorp, Inc. KS WBCI 267829 22.875 35.79 104.02 104.07
Webster Financial Corporation CT WBST 3837220 29.5 238.99 120.8 158.35
Westco Bancorp IL WCBI 312158 21.5 56.37 116.85 116.85
Webster City Federal SB, MHC IA WCFB 97391 12.5 26.25 120.42 120.42
Workingmens Capital Holdings IN WCHI 208203 20.625 37.3 140.98 140.98
Wells Financial Corp. MN WEFC 196184 11.75 25.7 87.62 87.62
Westcorp CA WES 3027248 18.5 480.58 153.65 NA
Winton Financial Corp. OH WFCO 282833 13.5 26.81 127.24 130.56
Washington Federal, Inc. WA WFSL 5040588 21.875 924.14 154.7 162.4
WHG Bancshares Corp. MD WHGB 111704 11.75 19.04 NA NA
Walden Bancorp, Inc. MA WLDN 1051743 19 101.07 103.94 120.71
Western Ohio Financial Corp. OH WOFC 319558 21.125 50.01 83.86 89.06
Warren Bancorp, Inc. MA WRNB 349421 12 44.2 140.19 140.19
Washington Savings Bank, FSB MD WSB 254968 5 21.1 100.6 100.6
WSFS Financial Corporation DE WSFS 1312864 8 110.66 149.25 150.94
WesterFed Financial Corp. MT WSTR 563931 14.313 62.91 80.05 80.05
WVS Financial Corporation PA WVFC 259622 21 36.47 107.14 107.14
Westwood Financial Corporation NJ WWFC 84779 10.875 7.03 NA NA
Wayne Bancorp, Inc. NJ WYNE 207997 12.625 28.17 NA NA
Yonkers Financial Corporation NY YFCB 242826 10.25 36.6 74.65 74.65
York Financial Corp. PA YFED 1109804 16.25 98.93 105.73 105.73
------------------------------
Current Price in Relation To Current
------------------------------ Dividend Equity/
Assets QTR EPS LTM EPS Yield Assets
Institution State Ticker (%) (x) (x) (%) (%)
- ------------------------------------------------------------------------------------------------------
Maximum 39.61 218.75 153.75 7.44 35.07
Minimum 0.67 2.04 3.36 0.00 3.40
Average 12.45 16.38 16.16 1.98 12.21
Median 10.52 12.24 11.57 2.08 9.81
- ------------------------------------------------------------------------------------------------------
Sterling Financial Corp. WA STSA 5.13 15.22 15.56 0 5.79
Sovereign Bancorp, Inc. PA SVRN 5.4 8.93 9.35 0.84 5.02
Southwest Bancshares IL SWBI 13.65 13.3 13.84 3.98 11.22
Sandwich Co-operative Bank MA SWCB 8.57 10.68 10.57 4.88 8.23
SouthFirst Bancshares, Inc. AL SZB 12.26 106.25 22.37 3.92 14.89
Tolland Bank CT TBK 5.53 10.38 NM 0 6.25
TCF Financial Corp. MN TCB 18.66 12.46 13.11 2.01 7.48
Troy Hill Bancorp, Inc. PA THBC 17.75 11.53 12.5 2.99 22.2
Third Financial Corp. OH THIR 23.5 18.75 18.22 2.36 18.38
Three Rivers Financial Corp. MI THR 12.75 19.73 NA 2.38 15.32
TF Financial Corporation PA THRD 12.08 13.58 13.99 2.27 14.2
Tappan Zee Financial, Inc. NY TPNZ 17.27 19.49 NA 1.51 18.04
Tri-County Bancorp, Inc. WY TRIC 14.98 15.73 18.33 2.65 16.17
Trenton SB, MHC NJ TSBS 23.69 13.75 NA 2.55 19.34
Teche Holding Co. LA TSH 15.37 14.13 NA 3.85 17.16
Twin City Bancorp TN TWIN 14.71 11.96 13.19 3.82 13.78
United Financial Corp. MT UBMT 21.2 17.43 13.73 4.86 23.53
United Federal Savings Bank NC UFRM 9.12 12.5 10.27 2.67 8.27
Virginia Beach Fed. Financial VA VABF 6.12 14.42 18.75 2.13 6.77
Valley Federal Savings Bank AL VAFD 9.59 40.79 119.23 1.94 8.09
Virginia First Financial VA VFFC 9.64 8.06 8.45 0 7.72
Washington Mutual Inc. WA WAMU 11.38 11.6 12.41 2.61 7.38
Wayne Savings & Loan Co. MHC OH WAYN 11.8 17.03 18.99 4.46 9.26
WFS Bancorp, Inc. KS WBCI 13.36 13.3 18.45 1.75 12.85
Webster Financial Corporation CT WBST 6.23 9.1 12.09 2.44 5.59
Westco Bancorp IL WCBI 18.06 14.53 15.58 2.23 15.45
Webster City Federal SB, MHC IA WCFB 26.95 22.32 23.15 6.4 22.39
Workingmens Capital Holdings IN WCHI 17.92 23.44 20.22 1.75 12.71
Wells Financial Corp. MN WEFC 13.1 12.24 NA 0 14.95
Westcorp CA WES 15.87 11.28 12.25 2.16 10.33
Winton Financial Corp. OH WFCO 9.48 11.25 10.89 3.11 7.45
Washington Federal, Inc. WA WFSL 18.33 9.94 11.05 4.21 11.85
WHG Bancshares Corp. MD WHGB NA NA NA 0 20.6
Walden Bancorp, Inc. MA WLDN 9.61 8.64 9.95 3.37 9.25
Western Ohio Financial Corp. OH WOFC 15.27 44.01 20.31 4.73 18.2
Warren Bancorp, Inc. MA WRNB 12.65 8.11 7.79 3.67 9.03
Washington Savings Bank, FSB MD WSB 8.28 11.36 9.09 2 8.22
WSFS Financial Corporation DE WSFS 8.43 8.33 4.28 0 5.65
WesterFed Financial Corp. MT WSTR 11.16 12.34 13.38 2.52 13.94
WVS Financial Corporation PA WVFC 14.05 11.67 10.19 1.91 13.11
Westwood Financial Corporation NJ WWFC NA NA NA 0 7.05
Wayne Bancorp, Inc. NJ WYNE NA NA NA 0 8.32
Yonkers Financial Corporation NY YFCB 15.07 NA NA 1.95 20.19
York Financial Corp. PA YFED 8.91 10.69 9.97 3.69 8.43
Tangible Qtr Qtr LTM LTM
Equity/ Return on Return on Return on Return on
Tang Assets Avg Assets Avg Equity Avg Assets Avg Equity
Institution State Ticker (%) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Maximum 35.07 3.11 54.91 2.30 38.10
Minimum 2.83 (3.28) (80.66) (1.74) (30.56)
Average 11.98 0.90 8.53 0.88 8.48
Median 9.36 0.88 7.81 0.86 7.47
- ----------------------------------------------------------------------------------------------------------------
Sterling Financial Corp. WA STSA 5.05 0.46 7.92 0.45 2.73
Sovereign Bancorp, Inc. PA SVRN 3.79 0.78 15.04 0.79 14.64
Southwest Bancshares IL SWBI 11.22 1.12 9.4 1.15 8.95
Sandwich Co-operative Bank MA SWCB 7.77 0.87 10.47 0.87 10.76
SouthFirst Bancshares, Inc. AL SZB 14.89 0.12 0.75 0.55 3.24
Tolland Bank CT TBK 5.98 0.56 9.08 -0.46 -7.5
TCF Financial Corp. MN TCB 7.18 1.54 20.22 1.43 20.06
Troy Hill Bancorp, Inc. PA THBC 22.2 1.42 6.27 1.38 6.09
Third Financial Corp. OH THIR 18.38 1.34 7.31 1.37 7.66
Three Rivers Financial Corp. MI THR 15.26 0.68 4.37 NA NA
TF Financial Corporation PA THRD 14.2 0.84 5.89 0.91 5.94
Tappan Zee Financial, Inc. NY TPNZ 18.04 0.87 4.63 0.8 5.22
Tri-County Bancorp, Inc. WY TRIC 16.17 1 6.82 0.95 5.13
Trenton SB, MHC NJ TSBS 19 1.69 8.75 1.8 9.97
Teche Holding Co. LA TSH 17.16 1.04 5.81 1.17 6.66
Twin City Bancorp TN TWIN 13.78 1.18 8.38 1.08 7.84
United Financial Corp. MT UBMT 23.53 1.16 5.09 1.5 6.64
United Federal Savings Bank NC UFRM 8.27 0.72 8.7 0.87 11.31
Virginia Beach Fed. Financial VA VABF 6.77 0.41 6.07 0.29 4.81
Valley Federal Savings Bank AL VAFD 8.09 0.23 2.86 0.08 0.96
Virginia First Financial VA VFFC 7.46 1.25 15.98 1.21 16.02
Washington Mutual Inc. WA WAMU 6.76 1.1 15.08 1.04 14.25
Wayne Savings & Loan Co. MHC OH WAYN 9.26 0.7 7.44 0.62 6.73
WFS Bancorp, Inc. KS WBCI 12.84 0.99 7.86 0.67 5.71
Webster Financial Corporation CT WBST 4.43 0.78 13.86 0.6 10.69
Westco Bancorp IL WCBI 15.45 1.37 8.76 1.3 8.37
Webster City Federal SB, MHC IA WCFB 22.39 1.22 5.46 1.16 5.24
Workingmens Capital Holdings IN WCHI 12.71 0.77 6.13 0.86 7.04
Wells Financial Corp. MN WEFC 14.95 1.02 6.88 0.81 5.96
Westcorp CA WES NA 1.4 13.84 1.28 13.55
Winton Financial Corp. OH WFCO 7.28 0.87 11.34 0.94 12.39
Washington Federal, Inc. WA WFSL 11.36 1.87 15.7 1.78 14.47
WHG Bancshares Corp. MD WHGB 20.6 0.52 2.52 NA NA
Walden Bancorp, Inc. MA WLDN 8.07 1.15 12.34 1.03 11.09
Western Ohio Financial Corp. OH WOFC 17.32 0.41 1.9 1.12 4.19
Warren Bancorp, Inc. MA WRNB 9.03 1.64 18.32 1.7 19.56
Washington Savings Bank, FSB MD WSB 8.22 0.8 9.78 0.94 12.56
WSFS Financial Corporation DE WSFS 5.59 1.03 17.96 2.2 38.1
WesterFed Financial Corp. MT WSTR 13.94 0.86 6.25 4.79 5.9
WVS Financial Corporation PA WVFC 13.11 1.24 8.93 1.51 10.19
Westwood Financial Corporation NJ WWFC 5.65 0.64 9.16 0.67 9.4
Wayne Bancorp, Inc. NJ WYNE 8.32 NA NA 0.46 5.12
Yonkers Financial Corporation NY YFCB 20.19 1.04 5.13 NA NA
York Financial Corp. PA YFED 8.43 0.91 10.62 0.99 11.57
Source: JML Securities L.P.
----------------------------
Exhibit IV-2
Comparative Market Indices
----------------------------
[LINE GRAPH APPEARS HERE]
Thrift Dow Jones
Index Index
12/31/93 252.548 3,754.090
01/31/94 258.468 3,978.360
02/28/94 249.529 3,832.020
03/31/94 241.573 3,635.960
04/29/94 248.312 3,681.690
05/31/94 263.340 3,758.370
06/30/94 269.584 3,624.960
07/29/94 276.692 3,764.500
08/31/94 287.183 3,913.420
09/30/94 279.687 3,843.190
10/31/94 263.118 3,908.120
11/30/94 245.835 3,739.230
12/30/94 244.727 3,834.440
01/31/95 256.138 3,843.860
02/28/95 276.973 4,011.050
03/31/95 278.404 4,157.690
04/28/95 295.442 4,321.270
05/31/95 307.584 4,465.140
06/30/95 313.454 4,556.100
07/31/95 328.184 4,708.470
08/31/95 355.487 4,610.560
09/29/95 362.289 4,789.080
10/31/95 354.053 4,755.480
11/30/95 370.172 5,074.490
12/29/95 376.508 5,117.120
01/31/96 370.694 5,395.300
02/29/96 373.640 5,485.620
03/29/96 382.130 5,587.140
04/30/96 380.270 5,569.080
05/31/96 382.992 5,643.180
06/28/96 387.179 5,654.630
07/31/96 389.887 5,528.910
08/08/96 399.361 5,713.490
----------------------------
Exhibit IV-3
Selected Comparative Rates
----------------------------
[LINE GRAPH APPEARS HERE]
90 Day 30 Year
Prime Rate Treasury 1 Year T-Bill Bond Yield
12/31/91 6.5 3.95 4.08 7.409
01/31/92 6.5 3.94 4.21 7.763
02/29/92 6.5 4.02 4.31 7.8
03/29/92 6.5 4.15 4.51 7.96
04/29/92 6.5 3.79 4.33 8.052
05/29/92 6.5 3.8 4.25 7.833
06/29/92 6.5 3.65 4.06 7.784
07/29/92 6 3.25 3.62 7.453
08/29/92 6 3.23 3.46 7.471
09/29/92 6 2.74 3.06 7.375
10/29/92 6 3.02 3.53 7.629
11/29/92 6 3.34 3.81 7.621
12/29/92 6 3.15 3.59 7.396
01/29/93 6 2.97 3.36 7.212
02/28/93 6 3 3.29 6.959
03/28/93 6 2.96 3.29 6.927
04/28/93 6 2.95 3.27 6.943
05/28/93 6 3.13 3.62 6.979
06/28/93 6 3.1 3.44 6.677
07/28/93 6 3.11 3.52 6.566
08/28/93 6 3.08 3.38 6.22
09/28/93 6 2.98 3.38 6.034
10/28/93 6 3.09 3.45 5.957
11/28/93 6 3.14 3.56 6.288
12/28/93 6 3.01 3.47 6.348
01/28/94 6 3.03 3.51 6.231
02/28/94 6 3.44 3.99 6.671
03/28/94 6.25 3.57 4.4 7.11
04/28/94 6.75 3.96 5.1 7.309
05/28/94 7.25 4.28 5.38 7.436
06/28/94 7.25 4.23 5.5 7.622
07/28/94 7.25 4.37 5.37 7.385
08/28/94 7.75 4.68 5.54 7.548
09/28/94 7.75 4.79 5.95 7.818
10/28/94 7.75 5.16 6.16 7.964
11/28/94 8.5 5.74 6.88 7.988
12/28/94 8.5 5.7 7.18 7.881
01/28/95 8.5 6 6.79 7.707
02/28/95 9 5.94 6.42 7.508
03/28/95 9 5.88 6.5 7.434
04/28/95 9 5.88 6.33 7.339
05/28/95 9 5.83 5.83 6.665
06/28/95 9 5.66 5.72 6.624
07/27/95 8.75 5.46 5.77 6.89
08/28/95 8.75 5.43 5.76 6.72
09/28/95 8.75 5.14 5.78 6.61
10/27/95 8.75 5.22 5.54 6.38
11/28/95 8.75 5.32 5.43 6.22
12/28/95 8.5 4.91 5.21 6
01/30/95 8.5 5.01 5.03 6.08
02/26/95 8.25 4.81 5.04 6.44
03/31/96 8.25 4.8 5.44 6.67
04/30/96 8.25 4.9 5.62 6.9
08/08/96 8.25 5.17 5.72 7.16
Exhibit V-I
Calculation of Return on Conversion Proceeds
In making the pro forma adjustments to calculate the additional income from the
net conversion proceeds, we have made the following assumptions:
1. The net proceeds are invested at the beginning of the applicable
period to yield 5.64%. Income taxes were assumed to be 39%, resulting
in an after-tax yield of 3.44%.
2. Earnings before extraordinary items were utilized as the earnings
base.
3. The Employee Stock Ownership Plan and Trust (ESOP) will purchase 8% of
the shares of Common Stock issued in the Conversion. Funds used to
acquire the ESOP shares will be borrowed from the Holding Company.
The Savings Bank expects to repay the debt over a 10-year period at
the prime rate. Appropriate adjustments to pro forma equity and
earnings have been incorporated.
4. Management intends to propose for consideration and approval by
stockholders at the first annual meeting following the Management
Recognition Plan ("MRP") for outside directors and for officers and
employees. It is assumed that the MRP will be acquired through open
market purchases.
5. It is assumed that (i) 100% of the shares will be sold in the
Offerings; and (ii) Trident Securities will receive a management fee
of 1% of the gross proceeds of the Offerings, plus commissions of 2%
of the gross proceeds less: Directors purchases and the amount of the
ESOP.
6. Total expenses at the midpoint are estimated to be $754,000.
47
EXHIBIT V-1
Richmond Savings Bank, S.S.B.
Pro Forma Effect of Conversion Proceeds
As of June 30, 1996
(000) omitted
Adjusted
Minimum Midpoint Maximum Maximum
=======================================================================================
Shares Offered (Total) 1,190,000 1,400,000 1,610,000 1,851,500
Price per share $10.00 $10.00 $10.00 $10.00
Gross Proceeds $11,900 $14,000 $16,100 $18,515
Estimated expenses 695 754 814 882
-----------------------------------------------------
Net proceeds $11,205 $13,246 $15,286 $17,633
Adj. net income - twelve months
ended 6/30/96-adjusted $591 $591 $591 $591
Incremental return on proceeds 263 311 360 416
Less: ESOP adjustment (58) (68) (79) (90)
Less: MRP adjustment (58) (68) (79) (90)
-----------------------------------------------------
Pro forma net income $738 $766 $794 $826
Earnings per share $0.62 $0.55 $0.49 $0.45
Adj. net income - three months
ended 6/30/96, annualized $508 $508 $508 $508
Incremental return on proceeds 263 311 360 416
Less: ESOP adjustment (58) (68) (79) (90)
Less: MRP adjustment (58) (68) (79) (90)
-----------------------------------------------------
Pro forma net income $654 $682 $711 $743
Earnings per share $0.55 $0.49 $0.44 $0.40
Net worth $8,641 $8,641 $8,641 $8,641
Net conversion proceeds 11,205 13,246 15,286 17,633
Less: ESOP adjustment (952) (1,120) (1,288) (1,481)
Less: MRP adjustment (476) (560) (644) (741)
-----------------------------------------------------
Pro forma net worth $18,418 $20,207 $21,995 $24,051
Book value per share $15.48 $14.43 $13.66 $12.99
Total assets $94,110 $94,110 $94,110 $94,110
Net conversion proceeds 11,205 13,246 15,286 17,633
Less: ESOP adjustment (952) (1,120) (1,288) (1,481)
Less: MRP adjustment (476) (560) (644) (741)
-----------------------------------------------------
Pro forma total assets $103,887 $105,676 $107,464 $109,521
Pro Forma Ratios
Price/EPS (LTM) 16.1 18.3 20.3 22.4
Price/EPS (last quarter) 18.2 20.5 22.7 24.9
Price/book per share 64.61% 69.28% 73.20% 76.98%
Market value/assets 11.45% 13.25% 14.98% 16.91%
EXHIBIT V-2
Richmond Savings Bank, SSB
Pro Forma Midpoint Analysis
Comparative Group All Public Thrifts
----------------- ------------------
Symbols Value Average Median Average Median
------------------------------------------------------------------------------------------------------
Price/earnings ratio P/E
Last twelve months (X) 24.5 14.2 20.8 16.7
Pro forma minimum 16.1
Pro forma adjusted midpoint 18.3
Pro forma maximum 20.3
Final Value 22.4
Last three months, annualized 27.3 16.4 20.8 16.7
Pro forma minimum 18.2
Pro forma adjusted midpoint 20.5
Pro forma maximum 22.7
Final Value 24.9
Price/book ratio P/B 97.5% 97.6% 69.3% 69.3%
Pro forma minimum (%) 64.6%
Pro forma adjusted midpoint 69.3%
Pro forma maximum 73.2%
Final Value 77.0%
Price/assets ratio P/A 20.40% 20.39% 14.90% 13.30%
Pro forma minimum (%) 11.45%
Pro forma adjusted midpoint 13.25%
Pro forma maximum 14.98%
Final Value 16.91%
Key Assumptions
Earnings base - last twelve months Y $591,000
Earnings base - last three months Y $507,812
Book value B $8,640,726
Tangible book value B $8,640,726
Total assets A $94,110,056
Estimated conversion
expense at midpoint X $754
Return on conversion
proceeds (after-tax) R 3.44%
Proceeds not reinvested Z $4,200,000
Estimated ESOP E ($1,120,000)
Cost of ESOP S 8.00%
Amort. of ESOP T 10 years
ESOP tax rate Tax 39%
Estimated MRP ($560,000)
Cost of MRP 4%
Amort. of MRP 5 years
EXHIBIT V-2 (Continued)
Richmond Savings Bank, SSB
Return on Conversion Proceeds
As of August 8, 1996
Amount Investment Security Yield
20.00% 3 month Treasury Bill 5.15%
20.00% 6 month Treasury Bill 5.32%
20.00% 1 year US Treasury Note 5.66%
20.00% 2 year US Treasury Note 5.95%
20.00% 3 year US Treasury Note 6.13%
100.00% Weighted Average Yield 5.64%
Weighted Average Maturity 1.35 years
EXHIBIT V-3
Pro Forma Midpoint Analysis
Richmond Savings Bank, SSB
Calculation of Estimated Value in a Standard Conversion (V)
P/E (Y - R (X+Z) - ES - (1-Tax) E/T - (1-Tax))
1. V = ---------------------------------------------- = $14,000,000
1 - (P/E) R
P/B (B - X - E)
2. V = --------------- = $14,000,000
1 - P/B
P/A (A - X)
3. V = ----------- = $14,000,000
1 - P/A
Value Valuation
Final Value Per Share Total Shares Date
----------- --------- ------------ ----
$14,000,000 $10.00 1,400,000 08/08/96