EXHIBIT 99.3
Conversion Valuation Report
=============================
Valued as of June 20, 1997
LEXINGTON FIRST FEDERAL MUTUAL HOLDING COMPANY
LEXINGTON FIRST FEDERAL SAVINGS BANK
Lexington, Tennessee
Prepared By:
Ferguson & Company
Suite 550
122 W. John Carpenter Freeway
Irving, TX 75039
972/869-1177
[LETTERHEAD OF FERGUSON & COMPANY APPEARS HERE]
STATEMENT OF APPRAISER'S INDEPENDENCE
Lexington First Federal Mutual Holding Company
----------------------------------------------
Lexington, Tennessee
--------------------
We are the appraiser for Lexington First Federal Mutual Holding Company
("Company")in connection with its conversion, reorganization and second stage
issuance of Public Shares. We are submitting our independent estimate of the
pro forma market value of the Company's stock to be issued in the conversion and
reorganization. In connection with our appraisal of the to-be-issued stock, we
have received a fee which was not related to the estimated final value. The
estimated pro forma market value is solely the opinion of our company and it was
not unduly influenced by the Company, its conversion counsel, its selling agent,
or any other party connected with the conversion.
The Company has agreed to indemnify Ferguson & Company under certain
circumstances against liabilities arising out of our services. Specifically, we
are indemnified against liabilities arising from our appraisal except to the
extent such liabilities are determined to have arisen because of our negligence
or willful conduct.
Ferguson & Company
/s/ Robin L. Fussell
Robin L. Fussell
Principal
June 24, 1997
[LETTERHEAD OF FERGUSON & COMPANY APPEARS HERE]
June 24, 1997
Boards of Directors
Lexington First Federal Mutual Holding Company
Lexington First Federal Savings Bank
19 Natchez Trace Drive
Lexington, TN 38351
Dear Directors:
We have completed and hereby provide, as of June 20, 1997, an
independent appraisal of the estimated pro forma market value of the common
stock which is to be issued by Community National Corporation ("Community" or
the "Holding Company"), in connection with the conversion and reorganization of
Lexington First Federal Mutual Holding Company ("LFFMHC" or the "MHC"). The MHC
currently has a majority ownership interest in, and its principal asset consists
of, the common stock of Lexington First Federal Savings Bank ("Lexington First
Federal" or the "Bank"). It is our understanding that the Holding Company is to
offer its stock in a subscription and community offering to the Bank's Eligible
Account Holders, to Supplemental Eligible Account Holders of the Bank, to Other
Members of the Bank, to directors, officers and employees of the Bank, to
certain Public Shareholders, and to the community. This appraisal report is
furnished pursuant to the regulatory filing of the Bank's Application for
Conversion ("Form AC") with the Office of Thrift Supervision ("OTS").
Ferguson & Company ("F&C") is a consulting firm that specializes in
providing financial, economic, and regulatory services to financial
institutions. The background and experience of F&C is presented in Exhibit I.
We believe that, except for the fees we will receive for preparing the
appraisal, we are independent. F&C personnel are prohibited from owning stock
in conversion clients for a period of at least one year after conversion.
In preparing our appraisal, we have reviewed the Application for
Approval of Conversion, including the Proxy Statement as filed with the OTS. We
conducted an analysis of LFFMHC that included discussions with Arnold, Spain &
Company, P. C., the Bank's independent auditors, and with Housley Kantarian &
Bronstein, P.C., the Bank's conversion counsel. In addition, where appropriate,
we considered information based on other available published sources that we
believe is reliable; however, we cannot guarantee the accuracy or completeness
of such information.
We also reviewed the economy in Lexington First Federal's primary
market area and compared the Bank's financial condition and operating results
with that of selected publicly traded thrift institutions. We reviewed
conditions in the securities markets in general and in the market for thrifts
stocks in particular.
Boards of Directors
June 24, 1997
Page 2
Our appraisal is based on LFFMHC's representation that the information
contained in the Form AC and additional evidence furnished to us by the MHC and
its independent auditors are truthful, accurate, and complete. We did not
independently verify the financial statements and other information provided by
LFFMHC and its auditors, nor did we independently value the assets or
liabilities of the MHC or the Bank. The valuation considers LFFMHC only as a
going concern and should not be considered an indication of its liquidation
value.
It is our opinion that, as of June 20, 1997, the estimated pro forma
market value of Lexington First Federal Mutual Holding Company was $4,300,000,
or 430,000 shares at $10.00 per share. The resultant valuation range was
$3,655,000 at the minimum (365,500 shares at $10.00 per share) to $4,945,000 at
the maximum (494,500 shares at $10.00 per share), based on a range of 15 percent
below and above the midpoint valuation. The supermaximum was $5,686,750
(568,675 shares at $10.00 per share).
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of common
stock in the conversion. Moreover, because such valuation is necessarily based
upon estimates and projections of a number of matters, all of which are subject
to change from time to time, no assurance can be given that persons who purchase
shares of common stock in the conversion will thereafter be able to sell such
shares at prices related to the foregoing estimate of the MHC's pro forma market
value. F&C is not a seller of securities within the meaning of any federal or
state securities laws and any report prepared by F&C shall not be used as an
offer or solicitation with respect to the purchase or sale of any securities.
Our opinion is based on circumstances as of the date hereof, including
current conditions in the United States securities markets. Events occurring
after the date hereof, including, but not limited to, changes affecting the
United States securities markets and subsequent results of operations of LFFMHC
could materially affect the assumptions used in preparing this appraisal.
The valuation reported herein will be updated as provided in the OTS
conversion regulations and guidelines. Any updates will consider, among other
things, any developments or changes in LFFMHC's financial performance and
condition, management policies, and current conditions in the equity markets for
thrift shares. Should any such new developments or changes be material, in our
opinion, to the valuation of the shares, appropriate adjustments will be made to
the estimated pro forma market value. The reasons for any such adjustments will
be explained in detail at the time.
Respectfully,
FERGUSON & COMPANY
/s/ Robin L. Fussell
Robin L. Fussell
Principal
FERGUSON & COMPANY
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TABLE OF CONTENTS
Lexington First Federal Savings Bank
Lexington, Tennessee
PAGE
----
INTRODUCTION 1
SECTION I. - FINANCIAL CHARACTERISTICS 2
PAST & PROJECTED ECONOMIC CONDITIONS 2
FINANCIAL CONDITION OF INSTITUTION 2
Balance Sheet Trends 2
Asset/Liability Management 2
Income and Expense Trends 2
Regulatory Capital Requirements 3
Lending 3
Nonperforming Assets 3
Classified Assets 3
Loan Loss Allowance 3
Mortgage-Backed Securities and Investments 3
Savings Deposits 3
Borrowings 4
Subsidiaries 4
Legal Proceedings 4
EARNINGS CAPACITY OF THE INSTITUTION 4
Asset-Size-Efficiency of Asset Utilization 4
Intangible Values 4
Effect of Government Regulations 5
Office Facilities 5
SECTION II - MARKET AREA 1
DEMOGRAPHICS 1
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TABLE OF CONTENTS - CONTINUED
Lexington First Federal Savings Bank
Lexington, Tennessee
PAGE
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SECTION III - COMPARISON WITH PUBLICLY TRADED THRIFTS 1
COMPARATIVE DISCUSSION 1
Selection Criteria 1
Profitability 2
Balance Sheet Characteristics 2
Risk Factors 2
Summary of Financial Comparison 3
FUTURE PLANS 3
SECTION IV - CORRELATION OF MARKET VALUE 1
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED 1
Financial Aspects 1
Market Area 2
Management 2
Dividends 2
Liquidity 3
Thrift Equity Market Conditions 3
TENNESSEE ACQUISITIONS 3
EFFECT OF INTEREST RATES ON THRIFT STOCK 3
Adjustments Conclusion 6
Valuation Approach 6
Conversion to Bank and Comparison to Banks 7
Valuation Conclusion 7
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TABLE OF CONTENTS - CONTINUED
Lexington First Federal Savings Bank
Lexington, Tennessee
TABLE
NUMBER TABLE TITLE PAGE
- ------ ----------- ----
SECTION I - FINANCIAL CHARACTERISTICS
1 Selected Financial Data 6
2 Selected Financial Ratios 7
3 Interest Rate Shock 8
4 Capital Compliance 9
5 Loan Portfolio Composition 10
6 Loan Maturities 11
7 Loan Origination, Purchase, and Sales Activity 12
8 Average Balances, Rates, and Yields 13
9 Rate/Volume Analysis 15
10 Non-Performing Assets 16
11 Analysis of the Allowance for Loan Losses 17
12 Allocation of the Allowance for Loan Losses 18
13 Investments 19
14 Investment Maturities 20
15 Deposit Portfolio 22
16 Time Deposits by Rate 22
17 Savings Flows 23
18 Time Deposit Maturities 23
19 Jumbo CD Maturities 23
20 Offices 24
SECTION II - MARKET AREA
1 Demographic Trends 3
2 Percent Employment by Industry 4
3 Market Area Deposits 5
SECTION III - COMPARISON WITH PUBLICLY
TRADED THRIFTS
1 Comparatives General 4
2 Key Financial Indicators 5
3 Pro Forma Comparisons 6
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TABLE OF CONTENTS - CONTINUED
Lexington First Federal Savings Bank
Lexington, Tennessee
TABLE
NUMBER TABLE TITLE PAGE
- ------ ----------- ----
SECTION IV - CORRELATION OF MARKET VALUE
1 Appraisal Earnings Adjustments 2
2 Tennessee Acquisitions 8
3 Recent Conversions 11
4 Recent Pink Sheet Conversions 14
5 Comparison of Pricing Ratios 17
6 Comparison of Pricing Ratios - Banking 18
7 Exchange Ratios 19
FIGURE
NUMBER LIST OF FIGURES PAGE
- ------ --------------- ----
SECTION IV - CORRELATION OF MARKET VALUE
1 SNL Index 20
2 Interest Rates 21
EXHIBIT TITLE
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Exhibit I - Ferguson & Company Qualifications
Exhibit II - Selected Region, State, and Comparatives Information
Exhibit III - Lexington First Federal Savings Bank TAFS Report
Exhibit IV - Comparative Group TAFS and BankSource Reports
Exhibit V - Selected Publicly Traded Thrifts
Exhibit VI - Comparative Group Selection
Exhibit VII - Pro Forma Calculations
Pro Forma Assumptions
Pro Forma Effect of Conversion Proceeds At the Minimum of the Range
Pro Forma Effect of Conversion Proceeds At the Midpoint of the Range
Pro Forma Effect of Conversion Proceeds At the Maximum of the Range
Pro Forma Effect of Conversion Proceeds At the SuperMax of the Range
Pro Forma Analysis Sheet
Exhibit VIII - Pink Sheet Banks
Exhibit IX - Other Thrifts Converting to Stock and Commercial Bank
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SECTION I
FINANCIAL CHARACTERISTICS
FERGUSON & COMPANY Section I.
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INTRODUCTION
Lexington First Federal Savings Bank ("Lexington First Federal" or
"Bank") is a federally chartered, federally insured stock savings bank located
in Lexington (Henderson County), Tennessee. It was chartered in 1961 as
Lexington First Federal Savings and Loan Association. Lexington First Federal
received its federal charter and insurance of accounts and joined the Federal
Home Loan Bank system in 1961. It completed the first step of a mutual holding
company conversion in December 1992, at which time it sold 80,000 shares of
stock to the public and contributed 135,000 shares to a mutual holding company,
Lexington First Federal Mutual Holding Company ("LFFMHC" or the "MHC"). Since
December 1992, the Bank has issued 7,997 shares of stock through stock option
exercises and redeemed 4 shares of stock. Thus, there are currently outstanding
222,993 shares, of which 87,993 (39.46%) are owned by public stockholders and
135,000 shares (60.54%) are owned by the MHC. In April 1997, the Board of
Directors adopted a plan of reorganization that provides for the merger of MHC
into the Bank, formation of a new holding company, Community National
Corporation, and a sale of the remaining interest in the Bank to the public
through a second step mutual holding company conversion. Upon completion of the
conversion and reorganization, Lexington First Federal will convert to a
national bank charter to be known as Community National bank of Tennessee.
At March 31, 1997, Lexington First Federal had total assets of $25.9
million, loans of $16.4 million, mortgage-backed securities of $3.2 million,
interest-bearing deposits in other banks of $1.8 million, investment securities
of $3.8 million, deposits of $20.9 million, borrowings of $.9 million, and net
worth of $3.9 million, or 15.1% of assets.
The bank has one office, which is located in Lexington (Henderson
County), Tennessee. Tennessee is in the southeastern portion of the United
States. Henderson County is located in the southwestern section of Tennessee.
Lexington First Federal is a traditional thrift with significant
emphasis on passive investments. It invests primarily in (1) 1-4 family loans,
(2) mortgage backed securities, (3) investment securities, and (4) temporary
cash investments. It is funded principally by savings deposits and existing net
worth. It has utilized minor amounts of borrowings recently.
The Bank offers a full spectrum of real estate loan products to
accommodate its customer base and single family loans dominate the Bank's loan
portfolio. At March 31, 1997, loans on 1-4 family dwellings made up 61.3% of
total assets and 95.8% of the loan portfolio. Consumer loans were 2.2% of the
loan portfolio and construction loans were 1.2% of the loan portfolio. Mortgage
backed securities made up 12.4% of total assets. Cash and cash equivalents made
up 7.0% and investment securities made up 14.7% of Lexington First Federal's
assets at March 31, 1997.
Lexington First Federal had $155,000 in non-performing assets at March
31, 1997, as compared to $114,000 at December 31, 1996, and $146,000 at December
31, 1995.
Savings deposits decreased $98 thousand during the period from
December 31, 1995, to March 31, 1997, a compound annual rate of decline of .37%.
Savings decreased $344 thousand (1.64%) from December 31, 1995, to December 31,
1996, and increased $249 thousand (1.21%) from December 31, 1996, to March 31,
1997. Lexington First Federal has not relied extensively on borrowings during
recent years. It had $949 thousand in borrowings at March 31, 1997, $955
thousand at December 31, 1996, and $971 thousand at December 31, 1995.
The Bank's capital to assets ratio has increased slightly during the
period of one year and three months ending March 31, 1997. Equity capital, as a
percentage of assets, has increased from 14.53% at December 31, 1995, to 15.12%
at March 31, 1997. The compound annual asset growth rate was .00% during the
period (assets increased $3 thousand), while the compound annual rate of growth
for equity was 3.25%.
Lexington First Federal's profitability, as measured by return on
average assets ("ROAA"), has been at the top of its peer group average of
thrifts filing TFR's with the OTS, consisting of OTS supervised thrifts with
assets under $25 million for 1993 and 1994 and between $25 million and $50
million for 1995 and 1996. For the years ending December 31, 1993, 1994, 1995,
and 1996, Lexington First Federal ranked in the 94th, 90th, 75th, and 91st
percentile,
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FERGUSON & COMPANY Section I.
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respectively, in ROAA, based on information derived from the TAFS thrift
database published by Sheshunoff Information Services Inc. (See Exhibit III,
page 2). In return on equity for the same periods, Lexington First Federal
ranked in the 60th, 80th, 51st, and 80th percentile, respectively.
I. FINANCIAL CHARACTERISTICS
PAST & PROJECTED ECONOMIC CONDITIONS
Fluctuations in thrift earnings in recent years have occurred within
the time frames as a result of changing temporary trends in interest rates and
other economic factors. However, the year-to-year results have been upward
while the general trends in the thrift industry have been improving as interest
rates declined. Interest rates began a general upward movement during late
1993, followed by a decline in interest margins and profitability. Rates began
a general decline in mid 1995 and then leveled off on the short end and
increased on the long end. Lexington First Federal's spread was 2.87% for the
year ended December 31, 1995 and 3.15% for the year ended December 31, 1996. It
increased to 3.02% for the three months ended March 31, 1997.
The thrift industry generally is better equipped to cope with changing
interest rates than it was in the past, and investors have recognized the
demonstrated ability of the thrift industry to maintain interest margins in
spite of rising interest rates. However, rate increases and the shortening of
the time elapsed between increases during 1994 placed pressure on portfolio
managers to shorten maturities, which negatively impacts the future earnings of
financial institutions. Lexington First Federal has a much higher exposure to
interest rate risk than the thrift industry in general.
FINANCIAL CONDITION OF INSTITUTION
Balance Sheet Trends
As Table I.1 shows, Lexington First Federal experienced no growth in
assets during the period of one year and three months ending March 31, 1997.
Assets increased $3 thousand during the period. Loans increased $1.9 million,
or 13.2%. Mortgage-backed securities, interest-earning cash, and investments
securities combined decreased $2.0 million, or 18.5% during the period. Savings
deposits decreased by $98 thousand, or .5%. Equity increased $154 thousand, or
4.1%.
Asset/Liability Management
Managing interest rate risk is a major component of the strategy used
in operating a thrift. Most of a thrift's interest earning assets are long-
term, while most of the interest bearing liabilities have short to intermediate
terms to contractual maturity. To compensate, asset/liability management
techniques include (1) making long term loans with interest rates that adjust to
market periodically, (2) investing in assets with shorter terms to maturity, (3)
lengthening the terms to maturities of savings deposits, and (4) seeking to
employ any combination of the aforementioned techniques artificially through the
use of synthetic hedge instruments. Table I.3 provides rate shock information
at varying levels of interest rate change. The Bank has significant exposure to
interest rate increases, but its exposure will be reduced through the equity
raised in the conversion.
Lexington First Federal's basic approach to interest rate risk
management has been to emphasize shorter term mortgage loans, and short and
intermediate term liquid investments. Lexington First Federal currently is not
utilizing synthetic hedge instruments and has not used borrowings extensively in
recent years. Lexington First Federal's business plan calls for emphasis on
shorter term and adjustable consumer and commercial non real estate loans.
Income and Expense Trends
Lexington First Federal was profitable for the two fiscal years ended
December 31, 1996, and the three months ended March 31, 1997. Fluctuations in
income over the period have resulted principally from (1) changes in non-
interest expense, principally the SAIF assessment of approximately $128,000 in
1996, and (2) severance payments of $20,000 during the three months ended March
31, 1997.
Net interest income increased in the year ended December 31, 1996,
principally as a result of growth, and remained flat during the three months
ended March 31, 1997 versus 1996.
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FERGUSON & COMPANY Section I.
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Regulatory Capital Requirements
As Table I.4 demonstrates, Lexington First Federal meets all
regulatory capital requirements, and meets the regulatory definition of a "Well
Capitalized" institution. Moreover, the additional capital raised in the stock
conversion will add to the existing capital cushion.
Lending
Table I.5 provides an analysis of the Bank's loan portfolio by type of
loan and security. This analysis shows that, from December 31, 1995, through
March 31, 1997, Lexington First Federal's loan composition has been dominated by
1-4 family dwelling loans. Table I.6 provides information on loan maturities
and repricing opportunities at December 31, 1996. The schedule shows that, at
that date, approximately 78% of the portfolio was scheduled to mature in more
than five years and 49% was scheduled to mature in more than ten years.
Table I.7 provides information with respect to loan originations. It
indicates that loan origination activity increased 69.6% from 1995 to 1996 and
that 1997 has started out on pace with 1996.
Table I.8 provides rates, yields, and average balances for each of the
two years ended December 31, 1996 and the three months ended March 31, 1997 and
1996. Interest rates earned on interest-earning assets increased from 8.00% in
1995 to 8.22% in 1996, and decreased to 8.01% for the three months ended March
31, 1997. Interest rates paid on interest-bearing liabilities decreased from
5.13% in 1995 to 5.07% in 1996, and decreased to 4.99% for the three months
ended March 31, 1997. Lexington First Federal's spread increased from 2.87% in
1995 to 3.15% in 1996, and decreased to 3.02% for the three months ended March
31, 1997.
Table I.9 provides a rate volume analysis, measuring differences in
interest earning assets and interest costing liabilities and the interest rates
thereon during the years ended December 31, 1995 versus 1996, and the period of
three months ended March 31, 1996 versus 1997. The table shows that most of the
increase in net interest income from the year ended December 31, 1995 to 1996
resulted from volume, while there was no change from the three months ended
March 31, 1996 to 1997.
Non-performing Assets
As shown in Table I.10, the Bank had $155,000 in loans that were over
90 days delinquent at March 31, 1997. The Bank was continuing to accrue interest
on these loans at March 31, 1997. As shown in Table I.10, Lexington First
Federal had $114 thousand in nonperforming assets at December 31, 1996, and $146
thousand at December 31, 1995.
Classified Assets
Lexington First Federal had $155 thousand in classified assets at
March 31, 1997. All of the classified assets were classified as substandard.
The Bank had a loan loss allowance of $147,000, or 94.8% of classified assets at
March 31, 1997.
Loan Loss Allowance
Table I.11 provides an analysis of Lexington First Federal's loan loss
allowance. Table I.12 shows the allocation of the loan loss allowance among the
various loan categories as of December 31, 1995 and 1996, and March 31, 1997.
Mortgage-Backed Securities and Investments
Table I.13 provides a breakdown of investments as of December 31, 1995
and 1996, and March 31, 1997. Table I.14 provides maturity information for
investments as of March 31, 1997.
Savings Deposits
At March 31, 1997, Lexington First Federal's deposit portfolio was
composed as follows: Checking accounts--$1.314 million or 6.29%; passbook
accounts--$1.372 million or 6.57%; and certificate accounts--$18.198 million or
87.14% (see Table I.15). Table I.16 provides a break down of time deposits by
rate ranges as of December 31, 1995 and 1996, and March 31, 1997. Table I.17
provides savings flow information for the years ended December
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FERGUSON & COMPANY Section I.
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31, 1995 and 1996, and the period of three months ended March 31, 1997. It shows
that the bank experienced healthy deposit growth rate for the year ended
December 31, 1995, but experienced no growth in deposits for the period of
fifteen months ended March 31, 1997. Table I.18 provides maturity information by
rate ranges for time deposits as of March 31, 1997. It shows that 90.77% of all
time deposits mature within one year and 100.00% mature within two years.
Lexington First Federal is not overly dependent on jumbo certificates
of deposit. March 31, 1997, the Bank had $3.647 million in certificates that
were issued for $100 thousand or more, or 17.46% of its total deposits (see
Table I.19).
Borrowings
Lexington First Federal has had only minor borrowings in recent years.
Subsidiaries
Lexington First Federal has one inactive subsidiary.
Legal Proceedings
From time to time, Lexington First Federal becomes involved in legal
proceedings principally related to the enforcement of its security interest in
real estate loans. In the opinion of Management of the Bank, no legal
proceedings are in process or pending that would have a material effect on
Lexington First Federal's financial position, results of operations, or
liquidity.
EARNINGS CAPACITY OF THE INSTITUTION
As in any interest sensitive industry, the future earnings capacity of
Lexington First Federal will be affected by the interest rate environment.
Historically, the thrift industry has performed at less profitable levels in
periods of rising interest rates. This performance is due principally to the
general composition of the assets and the limited repricing opportunities
afforded even the adjustable rate loans. The converse earnings situation
(falling rates) does not afford the same degree of profitability potential for
thrifts due to the tendency of borrowers to refinance both high rate fixed rate
loans and adjustable loans as rates decline.
Lexington First Federal is no exception to the aforementioned
phenomenon. With its current asset and liability structure, however, its
exposure to rising interest rates is significant.
The addition of capital through the conversion will encourage
Lexington First Federal to grow. The business plan projects asset growth over
the three year period ending March 31, 2000 between 15% and 22% annually. As
growth is attained, the leverage of that new capital should, from a ratio of
expenses to total assets standpoint, reduce the operating expense ratio.
Asset-Size-Efficiency of Asset Utilization
At its current size and in its current asset configuration, Lexington
First Federal is a moderately efficient operation. With total assets of
approximately $25.9 million at March 31, 1997, Lexington First Federal has
approximately 10 full time equivalent employees. The business plan projects
that operating expense levels as a percentage of average assets will stay in
line with pre-conversion rates. The projected operating expense ratio to
average assets for the year ending March 31, 2000, is 1.89% in the business
plan.
Intangible Values
Lexington First Federal's greatest intangible value lies in its loyal
deposit base. Lexington First Federal has a 36 year history of sound
operations, controlled growth, and consistent earnings. At June 30, 1996, the
Bank had 7.60% of the deposit market in its area (down from 7.71% at June 30,
1994), and it has the ability to increase market share. Lexington First Federal
has maintained its market share in recent years without making any significant
efforts. Its turn around in strategic direction is expected to help Lexington
First Federal increase its market share significantly.
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Lexington First Federal has no significant intangible values that
could be attributed to unrecognized asset gains on investments and real estate.
Effect of Government Regulations
Lexington First Federal's business plan calls for significant change
in its strategies. The changes will involve the types of loans sought and the
efforts expended to acquire deposits. Government regulations will have the
greatest impact in the area of cost of compliance and reporting. The conversion
will create an additional layer of regulations and reporting and thereby
increase the cost to the Bank.
Office Facilities
Lexington First Federal's office is a well maintained facility that
was built in 1976. It has limited drive-up services. Table I.20 provides
information on Lexington First Federal's office. The facilities are marginally
adequate for the convenience and needs of the Bank's customer base. The
business plan projects that the Bank will open a branch office in Lexington
during the June 1998 quarter.
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Table I.1 - Selected Financial Data
Compound
March 31, December 31, Growth
----------- -------------------------
1997 1996 1995 Rate
---- ---- ---- ----
($000's)
Selected Financial Condition Data:
- ---------------------------------
Total assets 25,942 25,623 25,945 NM
Loans receivable, net 16,429 16,205 14,512 10.35%
Cash and cash equivalents 1,823 1,392 1,761 2.80%
Investment securities:
Available for sale 1,568 1,802 3,104 -43.35%
Held to maturity 2,257 2,257 2,351 -3.23%
Mortgage-backed securities:
Available for sale 2,556 2,664 2,823 -7.68%
Held to maturity 650 678 829 -17.90%
Savings deposits 20,884 20,638 20,982 -0.37%
Borrowings 949 955 971 -1.80%
Stockholders' equity - substantially restricted 3,923 3,861 3,769 3.25%
Three Months Ended
March 31, Year Ended December 31,
-------------------- -----------------------
1997 1996 1996 1995
---- ---- ---- ----
($000's)
Selected Operations Data:
- ------------------------
Interest income 498 505 2,031 1,944
Interest expense 270 279 1,103 1,091
-------------------- -----------------------
Net interest income 228 226 928 853
Provision for loan losses 6 8 30 30
-------------------- -----------------------
Net interest income after
provision for loan losses 222 218 898 823
-------------------- -----------------------
Noninterest income 15 8 21 17
-------------------- -----------------------
Sub-total 237 226 919 840
-------------------- -----------------------
Noninterest expense 144 114 617 464
-------------------- -----------------------
Income (loss) before taxes 93 112 302 376
Income tax expense 31 37 105 152
-------------------- -----------------------
Net income (loss) 62 75 197 224
==================== =======================
Earnings per share $0.28 $0.34 $0.88 $1.00
==================== =======================
Dividend payout ratio 28.39% 23.47% 35.74% 31.43%
==================== =======================
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Table I.2 - Selected Financial Ratios
At or for the Three Months At or For the Year
Ended March 31, Ended December 31,
-------------------------- ----------------------
1997 1996 1996 (1) 1995
---- ---- -------- ----
Performance Ratios:
- -------------------
Return on assets (ratio of net earnings
to average total assets) 0.96% 1.16% 0.76% 0.90%
Return on equity (ratio of net earnings
to average equity) 6.42% 8.00% 5.21% 6.27%
Ratio of average interest-earning assets to
average interest-bearing liabilities 116.29% 115.40% 115.59% 115.54%
Net interest rate spread 3.03% 3.02% 3.15% 2.86%
Net yield on average interest-earning assets 3.72% 3.69% 3.84% 3.55%
Ratio of noninterest expense to assets 2.24% 1.76% 2.40% 1.86%
Efficiency ratio 59.26% 48.72% 65.02% 53.33%
Quality Ratios:
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Non-performing assets to total assets
at end of period 0.54% 0.58% 0.56% 0.51%
Non-performing loans to total loans
at end of period 0.91% 1.06% 0.75% 1.03%
Allowance for loan losses to non-performing
loans at end of period 94.84% 81.37% 124.56% 84.25%
Allowance for loan losses to total loans, net 0.86% 0.86% 0.86% 0.84%
Capital Ratios:
- ---------------
Equity to total assets at end of period 15.12% 14.32% 15.07% 14.53%
Average equity to average assets 15.02% 14.45% 14.68% 14.28%
(1) Operations for 1996 includes the SAIF assessment, which was $128,000
($82,000 after taxes). Factoring out the SAIF assessment, the return on assets
would be 1.08%, the return on equity would be 7.38%, the ratio of noninterest
expense to average assets would be 1.88%, and the efficiency ratio would be
51.53%.
7
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.3 - Interest Rate Shock
Net Portfolio Value
December 31, 1996
---------------------------------------------------------------
Estimated
NPV as a
Estimated Percent
Change in Rates NPV of Assets $ Change % Change
- --------------------------- -------------- ------------- -------- -------------
($000's)
+400 bp $ 2,478 10.41% (2,150) -46%
+300 bp 3,051 12.44% (1,577) -34%
+200 bp 3,622 14.36% (1,006) -22%
+100 bp 4,175 16.09% (453) -10%
0 bp 4,628 17.42% - -
- --100 bp 4,880 18.06% 252 5%
- --200 bp 4,944 18.10% 316 7%
- --300 bp 5,024 18.17% 396 9%
- --400 bp 5,155 18.37% 527 11%
8
FERGUSON & COMPANY Section 1.
- ------------------ ----------
Table I.4 - Capital Compliance
March 31, 1997
---------------------------------
Amount Percent
($000's) of Assets
--------------- --------------
Capital under generally accepted accounting principals 3,923 15.12%
=============== ==============
Tangible capital 3,951 15.21%
Tangible capital requirement 390 1.50%
--------------- --------------
Excess 3,561 13.71%
=============== ==============
Core capital 3,951 15.21%
Core capital requirement 779 3.00%
--------------- --------------
Excess 3,172 12.21%
=============== ==============
Total regulatory capital 4,093 36.07%
Risk-based capital requirement 908 8.00%
--------------- --------------
Excess 3,185 28.07%
=============== ==============
9
FERGUSON & COMPANY Section 1.
- ------------------ ---------
Table I.5 - Loan Portfolio Composition
At March 31, At December 31,
------------------ -----------------------------------
1997 1996 1995
----------------- ----------------- ----------------
Amount Percent Amount Percent Amount Percent
------ ------- ------ ------- ------ -------
($000's)
Mortgage Loans:
1-4 family 15,904 95.8% 15,543 93.9% 14,264 97.2%
Non-residential 134 0.8% 164 1.0% 9 0.1%
Construction--1-4 family 193 1.2% 550 3.3% 76 0.5%
------------------ ----------------- -----------------
Total real estate loans 16,231 97.8% 16,257 98.2% 14,349 97.8%
------------------ ----------------- -----------------
Consumer Loans:
Deposit account loans 321 1.9% 296 1.8% 324 2.2%
Car 7 0.0% - 0.0% - 0.0%
Other 41 0.2% - 0.0% - 0.0%
------------------ ----------------- ----------------
Total consumer loans 369 2.2% 296 1.8% 324 2.2%
------------------ ----------------- ----------------
Total loans 16,600 100.0% 16,553 100.0% 14,673 100.0%
================== ================= ================
Less:
Loans in process - 180 8
Deferred fees and discounts 26 27 30
Allowance for losses 147 141 123
-------- -------- -------
Loan portfolio, net 16,427 16,205 14,512
======== ======== =======
10
FERGUSON & COMPANY Table I.6 - Loan Maturities Section 1.
- ------------------ ----------
The following table sets forth certain information at December 31, 1996,
regarding the amount of loans maturing in the loan portfolio, based on
contractual terms to maturity.
Under One to Three to Over Five to Over
One Year Three Years Five Years Ten Years Ten Years Total
---------- ------------- ------------ -------------- ----------- -----------
($000's)
Mortgage loans
1-4 family 1,550 266 812 4,774 8,141 15,543
Commercial 93 - 39 23 9 164
Construction 550 - - - - 550
Consumer deposit loans 222 74 - - - 296
---------- ------------- ------------ -------------- ----------- -----------
Total 2,415 340 851 4,797 8,150 16,553
========== ============= ============ ============== =========== ===========
The following table sets forth the dollar amount of all loans for which final
payment is not due until after December 31, 1997. The Bank had no adjustable
rate loans.
Fixed Rate Adjustable
Loans Loans
------------ ------------
($000's)
Real estate loans:
1-4 family 13,074 919
Commercial 71
Consumer deposit loans 74
------------ ------------
Total 13,219 919
============ ============
11
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.7 - Loan Origination, Purchase, and Sales Activity
Three Months
Ended
March 31, Year Ended December 31,
--------------- --------------------------
1997 1996 1995
---- ---- ----
($000's)
Originations by type:
- ---------------------
Real estate:
One- to four-family 1,086 3,203 2,154
Multi family - - 225
Commercial - 35 -
Construction--1-4 family - 938 -
Consumer:
Deposit account loans 79 297 259
-------------- ----------- ----------
Total loans originated 1,165 4,473 2,638
-------------- ----------- ----------
Purchases:
Participations, one- to four-family - - -
-------------- ----------- ----------
Total loans originated and purchases 1,165 4,473 2,638
============== =========== ==========
Loans sold - - -
============== =========== ==========
12
FERGUSON & COMPANY Table I.8 - Average Balances, Rates, and Yields Section I.
- ------------------ ----------
Three Months Ended March 31,
------------------------------------------------------------------------------------
1997 1996
------------------------------------------------------------------------------------
Average Interest Average Interest
Outstanding Earned/ Average Outstanding Earned/ Average
Balance Paid Yield/Rate Balance Paid Yield/Rate
---------------------------------------- --------------------------------------
($000's) ($000's)
Interest-earning assets:
- -----------------------
Loans 16,578 365 8.81% 14,923 342 9.17%
Investment securities:
Taxable 2,731 54 7.91% 4,238 72 6.80%
Nontaxable 1,145 24 8.38% 1,145 28 9.78%
Mortgage-backed securities 3,218 52 6.46% 3,720 60 6.45%
Other interest-earning assets 1,592 11 2.76% 1,379 13 3.77%
---------------------------------------- --------------------------------------
Total interest-earning assets 25,264 506 8.01% 25,405 515 8.11%
---------------------------------------- --------------------------------------
Non-interest earning assets 443 557
-------------- --------------
Total assets 25,707 25,962
============== ==============
Interest-bearing liabilities:
- -----------------------------
Deposits 20,774 252 4.85% 21,049 261 4.96%
Borrowings 951 19 7.99% 967 19 7.86%
---------------------------------------- --------------------------------------
Total interest-bearing liabilities 21,725 271 4.99% 22,016 280 5.09%
---------------------------------------- --------------------------------------
Non-interest bearing liabilities 90 196
-------------- --------------
Total liabilities 21,815 22,212
Equity 3,892 3,750
-------------- --------------
Total liabilities and equity 25,707 25,962
============== ==============
FTE net interest income 235 235
------------ -----------
Net interest rate spread 3.02% 3.02%
============== =============
Net average earning assets 3,539 3,389
============== ==============
Net interest margin 3.72% 3.70%
============== =============
Tax equivalent adjustments (8) (10)
------------ -----------
Net interest income 227 225
============ ===========
Average interest-earning assets to
average interest-bearing liabilities 116.29% 115.39%
============== ==============
13
FERGUSON & COMPANY Table 1.8 - Average Balances, Rates, and Yields Section I.
- ------------------ ----------
Year Ended December 31,
-----------------------------------------------------------------------------
1996 1995
-------------------------------------- -------------------------------------
Average Interest Average Interest
Outstanding Earned/ Average Outstanding Earned/ Average
Balance Paid Yield/Rate Balance Paid Yield/Rate
-------------------------------------- -------------------------------------
($000's)
Interest-earning assets:
- ------------------------
Loans 15,586 1,416 9.09% 14,357 1,321 9.20%
Investment securities:
Taxable 4,183 283 6.77% 4,431 299 6.75%
Nontaxable 1,145 111 9.69% 684 61 8.92%
Mortgage-backed securities 3,393 222 6.54% 3,676 239 6.50%
Other interest-earning assets 861 37 4.30% 1,407 44 3.13%
-------------------------------------- -------------------------------------
Total interest-earning assets 25,168 2,069 8.22% 24,555 1,964 8.00%
-------------------------------------- -------------------------------------
Non-interest earning assets 591 449
-------------- --------------
Total assets 25,759 25,004
============== ==============
Interest-bearing liabilities:
- -----------------------------
Deposits 20,814 1,027 4.93% 20,274 1,013 5.00%
Borrowings 959 76 7.92% 980 78 7.96%
-------------------------------------- -------------------------------------
Total interest-bearing liabilities 21,773 1,103 5.07% 21,254 1,091 5.13%
-------------------------------------- -------------------------------------
Non-interest bearing liabilities 206 178
-------------- --------------
Total liabilities 21,979 21,432
Equity 3,780 3,572
-------------- --------------
Total liabilities and equity 25,759 25,004
============== ==============
FTE net interest income 966 873
---------- ------------
Net interest rate spread 3.15% 2.87%
============= ===========
Net average earning assets 3,395 3,301
============== ==============
Net interest margin 3.84% 3.56%
============= ===========
Tax equivalent adjustments (38) (21)
---------- ------------
Net interest income 928 852
========== ============
Average interest-earning assets to
average interest-bearing liabilities 115.59% 115.53%
============== ==============
14
FERGUSON & COMPANY Table I.9 - Rate/Volume Analysis Section 1.
- ------------------ ----------
Three Months Ended March 31, Year Ended December 31,
1997 vs. 1996 1996 vs. 1995
---------------------------------------------- -------------------------------------------
Increase Increase
(Decrease) (Decrease)
Due to Due to
--------------------------------- Total ----------------------------- Total
Rate/ Increase Rate/ Increase
Volume Rate Volume (Decrease) Volume Rate Volume (Decrease)
------ ---- ------ ---------- ------ ---- ------ ----------
($000's)
Interest-earning assets:
Loans 152 (54) (5) 93 113 (17) (1) 95
Investment securities:
Taxable (102) 47 (17) (72) (18) (29) 2 (45)
Nontaxable - (14) - (14) 41 5 4 50
Mortgage-backed securities (32) - - (32) (18) 2 - (16)
Other 8 (14) (5) (11) (17) 16 (6) (7)
---------------------------------------------- -------------------------------------------
Total interest-earning assets 26 (35) (27) (36) 101 (23) (1) 77
============================================== ===========================================
Interest-bearing liabilities:
Deposits (14) (23) - (37) 27 (13) - 14
Borrowings (1) 1 - - (2) - - (2)
---------------------------------------------- -------------------------------------------
Total interest-bearing liabilities (15) (22) - (37) 25 (13) - 12
============================================== ===========================================
Increase (decrease) in
net interest income 1 65
========== ===========
15
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.10 - Non-Performing Assets
The table below sets forth the amounts and categories of non-performing assets.
Loans are placed on non-accrual status when the collection of principal or
interest becomes doubtful.
March 31, December 31,
------------- -------------------
1997 1996 1995
---- ---- ----
($000's)
Non-accruing loans:
Real estate:
One- to four-family - - -
Other mortgage - - -
Consumer - - -
------------- -------------------
Total - - -
------------- -------------------
Accruing loans delinquent 90 days or more - - -
Real estate:
One- to four-family 155 114 146
Other mortgage - - -
Consumer - - -
------------- -------------------
Total 155 114 146
------------- -------------------
Total non-performing loans 155 114 146
------------- -------------------
Foreclosed real estate owned - - -
------------- -------------------
Total non-performing assets 155 114 146
============= ===================
Total non-performing loans as a
percentage of total net loans 0.91% 0.75% 1.03%
============= ===================
Total non-performing assets as a
percentage of total assets 0.60% 0.44% 0.56%
============= ===================
16
FERGUSON & COMPANY Section 1.
- ------------------ ----------
Table I.11 - Analysis of the Allowance for Loan Losses
Three Months
ended
March 31, Year ended December 31,
---------------- -------------------------
1997 1996 1995
---- ---- ----
($000's)
Balance at beginning of period 141 123 94
---------------- ----------- ----------
Charge-offs:
One- to four-family - 12 1
---------------- ----------- ----------
Total - 12 1
---------------- ----------- ----------
Recoveries:
One- to four-family - - -
----------------
Total - - -
---------------- ----------- ----------
Net charge-offs - 12 1
---------------- ----------- ----------
Additions charged to operations 6 30 30
---------------- ----------- ----------
Balance at end of period 147 141 123
================ =========== ==========
Allowance for loan losses to total
loans at end of period 0.89% 0.87% 0.85%
================ =========== ==========
Net loans charged off as a percent of average
loans outstanding NA 0.0696% 0.0070%
================ =========== ==========
17
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.12 - Allocation of Allowance for Loan Losses
At March 31, At December 31,
------------------------ -----------------------------------------------------
1997 1996 1995
------------------------ -------------------------- -----------------------
Percent Percent Percent
of Loans of Loans of Loans
in Each in Each in Each
Amount of Category Amount of Category Amount of Category
Loan Loss to Gross Loan Loss to Gross Loan Loss to Gross
Allowance Loans Allowance Loans Allowance Loans
--------- --------- --------- --------- --------- --------
($000's)
Real estate:
1-4 family 85 95.8% 79 93.9% 73 97.2%
Commercial 10 0.8% 12 1.0% - 0.6%
Construction - 1.2% - 3.3% - 0.5%
Consumer 2 2.2% - 1.8% - 2.2%
Unallocated 50 50 50
------------------------ -------------------------- -----------------------
147 100.0% 141 100.0% 123 100.0%
------------------------ -------------------------- -----------------------
18
FERGUSON & COMPANY Section I.
- ------------------ ---------
Table I.13 - Investments
March 31, December 31,
------------------- ----------------------------------------
1997 1996 1995
------------------- ------------------ -------------------
Carrying % of Carrying % of Carrying % of
Value Total Value Total Value Total
----- ----- ----- ----- ----- -----
($000's)
AVAILABLE FOR SALE:
U.S. government agencies 1,107 26.5% 1,358 29.9% 2,796 47.2%
Tax exempt securities 511 12.2% 513 11.3% 308 5.2%
Mortgage-backed securities 2,562 61.3% 2,664 58.7% 2,825 47.6%
--------- --------- --------- -------- -------- --------
Total available for sale 4,180 100.0% 4,535 100.0% 5,929 100.0%
========= ========= ========= ======== ======== ========
HELD TO MATURITY:
U.S. government agencies 1,600 55.0% 1,600 54.5% 1,694 53.3%
Tax exempt securities 657 22.6% 657 22.4% 657 20.7%
Mortgage-backed securities 650 22.4% 678 23.1% 829 26.1%
--------- --------- --------- -------- -------- --------
Total held to maturity 2,907 100.00% 2,935 100.00% 3,180 100.00%
========= ========= ========= ======== ======== ========
Total Investment and
Mortgage-backed securities 7,087 7,470 9,109
========= ========= ========
Cash and time deposits -
interest bearing 1,669 1,203 1,544
========= ========= ========
FHLB stock 250 246 230
========= ========= ========
Total of all investments and
interest earning cash 9,006 8,919 10,883
========= ========= ========
19
FERGUSON & COMPANY Table I.14-Investment Maturities Section I.
- ------------------ March 31, 1997 ----------
One Year or Less One to Five Years Five to Ten Years
--------------------- -------------------- --------------------
Amortized Average Amortized Average Amortized Average
Cost Yield Cost Yield Cost Yield
---- ----- ---- ----- ---- -----
($000's)
--------
AVAILABLE FOR SALE:
U.S. government agencies 395 5.29% 250 6.55% 300 5.88%
Tax exempt securities - 194 4.26% 317 6.80%
Mortgage-backed securities 376 6.08% 373 6.52% 243 5.78%
-------- -------- --------
Total available for sale 771 817 860
-------- -------- --------
HELD TO MATURITY:
U.S. government agencies 1,000 6.88% 500 5.13% -
Tax exempt securities - - 397 5.37%
Mortgage-backed securities - - -
-------- -------- --------
Total held to maturity 1,000 500 397
-------- -------- --------
Total 1,771 1,317 1,257
======== ======== ========
20
FERGUSON & COMPANY Table I.14 - Investment Maturities Section I.
- ------------------ ----------
March 31, 1997
Over Ten Years Total Portfolio
------------------- -----------------------------
Amortized Average Amortized Market Average
Cost Yield Cost Value Yield
----- ----- ---- ----- -----
AVAILABLE FOR SALE:
U.S. government agencies 162 4.58% 1,107 1,067 5.63%
Tax exempt securities - 511 501 5.83%
Mortgage-backed securities 1,570 6.07% 2,562 2,556 6.11%
---------- ---------------------
Total available for sale 1,732 4,180 4,124
---------- ---------------------
HELD TO MATURITY:
U.S. government agencies 100 7.35% 1,600 1,595 6.36%
Tax exempt securities 260 5.90% 657 672 5.56%
Mortgage-backed securities 650 6.96% 650 655 6.96%
---------- ---------------------
Total held to maturity 1,010 2,907 2,922
---------- ---------------------
Total 2,742 7,087 7,046
========== =====================
21
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.15 - Deposit Portfolio
Balance Percent
Interest Minimum March 31, of
Category Term Rate (1) Balance 1997 Deposits
- -------- ---- -------- ------- ---- --------
($000's)
--------
Savings and transactions accounts
- ---------------------------------
Passbook accounts None 3.00% 25 1,372 6.57%
NOW accounts None 2.00% 200 1,248 5.98%
Super NOW accounts None 3.05% 1,500 3 0.01%
Non-interest checking None 0.00% 100 63 0.30%
---------- ---------
2,686 12.86%
---------- ---------
Certificates of deposit
- ---------------------------------
Fixed term, fixed rate 1 month or less 3.71% 500 41 0.20%
Fixed term, fixed rate 3 months 4.74% 500 323 1.55%
Fixed term, fixed rate 6 months 5.18% 500 9,437 45.19%
Fixed term, fixed rate 12 months 5.15% 500 3,435 16.45%
Fixed term, fixed rate 18 months 5.40% 500 3,734 17.88%
Fixed term, fixed rate 18 month IRA 5.29% 500 1,228 5.88%
---------- ---------
Total certificates of deposit 18,198 87.14%
---------- ---------
Total savings deposits 20,884 100.00%
========== =========
(1) Indicates weighted average interest rate at March 31, 1997.
Table I.16 - Time Deposits by Rate
At December 31,
At March 31, ---------------------
1997 1996 1995
------------ -------- --------
Interest rate ($000's)
- -------------
2.00 - 3.99% 41 - 174
4.00 - 5.99% 18,157 18,189 18,086
------------ -------- --------
Total 18,198 18,189 18,260
============ ======== ========
22
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.17 - Savings Flows
The following table sets forth the savings flows for the periods indicated.
3 Months
Ended
March 31, Year Ended December 31,
---------- -------------------------
1997 1996 1995
---- ---- ----
($000's)
Opening balance 20,638 20,982 19,249
Net increase (decrease)
before interest credited 50 (1,332) 1,013
Interest credited 196 988 720
----------- --------- ----------
Ending Balance 20,884 20,638 20,982
=========== ========= ==========
Net increase (decrease) 246 (344) 1,733
=========== ========= ==========
Percent increase (decrease) 1.19% -1.64% 9.00%
=========== ========= ==========
Table I.18 - Time Deposit Maturities
Amount Due During Year Ending March 31, Due After
Interest -------------------------------------------------------- March 31,
Rate 1998 1999 2000 2001 2001 Total
- ---- ---- ---- ---- ---- ---- -----
($000's)
2.00 - 3.99% 41 - - - - 41
4.00 - 5.99% 16,477 1,680 - - - 18,157
------------- ------------- ------------- ------------- ------------- -------------
Total 16,518 1,680 - - - 18,198
============= ============= ============= ============= ============= =============
Percent 90.77% 9.23% 0.00% 0.00% 0.00% 100.00%
============= ============= ============= ============= ============= =============
Table I.19 - Jumbo CD Maturities ($000's)
Maturity Period
- ---------------
Within three months 1,412
Three through six months 1,728
Six through twelve months 407
Over twelve months 100
---------
Total 3,647
=========
23
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.20 - Offices
Net Book Owned or Approximate
Physical address Value Leased Square Footage
- ---------------- ----- ------ --------------
($000's)
Main Office:
19 Natchez Trace Drive 251 Owned 6,800
==========
Lexington, TN 38351
24
SECTION II
MARKET AREA
FERGUSON & COMPANY Section II.
- ------------------ -----------
II. MARKET AREA
DEMOGRAPHICS
Lexington First Federal Savings Bank ("Lexington First Federal" or
"Bank") conducts its operations through one office located in Lexington,
Henderson County, Tennessee. Tennessee is in the southeastern region of the
United States. Henderson County is in the southwestern section of Tennessee.
Lexington First Federal has determined that its principal trade area is
Henderson County. Table II.1 presents historical and projected trends for the
United States, Tennessee, Henderson County, and zip code 38351, which includes
the city of Lexington. The information addresses population, income, employment,
and housing trends.
As indicated in Table II.1, population growth rates for Tennessee,
Henderson County, and zip code 38351 are all above the United States growth
rate. Household income growth for Tennessee, Henderson County, and zip code
38351 is projected to be above that of the United States for the period 1996 to
2001.
In the period from 1990 until 1996, the population of the State of
Tennessee grew 9.39%. During the same period, the Henderson County population
increased 8.19%, zip code 38351 increased 9.28%, and the United States
population increased 6.67%. Projections of population growth from 1996 through
2001 indicate that the State of Tennessee will increase 6.87%, while Henderson
County is projected to increase by 6.04%, zip code 38351 is projected to
increase 6.54%, and the United States population is projected to increase by
5.09%.
Household income is projected to increase by 4.80% for Henderson County
from 1996 to 2001. For the same period, household income is projected to
increase by .98% for the State of Tennessee, increase by 5.00% for zip code
38351, and decline by 3.88% for the United States. Per capita and household
income levels for the State of Tennessee are below those of the United States,
and per capita and household income levels for Henderson County and zip code
38351 are well below the State of Tennessee.
The 2001 estimate shows that, for Henderson County, households with
incomes less than $15,000 are expected to be 26%; those with incomes between
$15,000 and $25,000 are estimated at 20%; those with incomes between $25,000 and
$50,000 are estimated at 38%; those with incomes between $50,000 and $100,000
are estimated at 14%; and households with incomes in excess of $100,000 are
projected to be 1%. The 2001 estimates for Tennessee are 23%, 18%, 34%, 20%, and
5%, respectively. The 2001 estimate for zip code 38351 is 26%, 20%, 38%, 14%,
and 2%, respectively.
The number of households in Henderson County is projected to increase
by 6.25% from 1996 to 2001, below the projection for the State of Tennessee
which calls for an increase of 6.94% and below the projected growth rate for zip
code 38351 at 6.75%. Household growth rate for Henderson County, the State of
Tennessee, and zip code 38351 all exceed the projected growth rate for the U.S.,
which is 5.14%.
With projections of a growth in population and number of households,
combined with projections of a growing household income, the market for housing
units will be good. Zip code 38351 has approximately 5,800 housing units, of
which 70.19% are owner occupied, and a vacancy rate of 7.84%. Henderson County
has approximately 9,300 housing units, of which 73.28% are owner occupied, and a
vacancy rate of 8.09%.
The principal sources of employment in Henderson County are
manufacturing--46.9%; trade--19.0%; public administration--13.5%; and
services--13.1%.
Analysis of the data presented above presents a picture of ample
economic opportunity, suggesting that WSB's growth opportunities within its
current market area will be good.
Based on information publicly available on deposits as of June 30, 1996
(see Table II.3), Henderson County had $273.5 million in deposits and Lexington
First Federal had 7.60% of the deposit market, down from 7.71% of the market at
June 30, 1994. The Bank's recent deposit growth rate has been moderate, in line
with the overall market. Lexington First Federal's competition consists of 7
commercial bank offices and 1 credit union office. The
1
FERGUSON & COMPANY Section II.
- ------------------ -----------
Bank's growth rate is expected to accelerate as a result of a recent change in
Management and the strategic direction of the Board of Directors. Table II.3
shows that from June 30, 1994 to 1996, Lexington First Federal's deposits
increased by $1.306 million (6.7%), while the overall market increased $20.781
million in deposits (8.2%). The Bank's business plan projects that its deposits
will grow at an accelerated pace in the future. The Plan projects that deposits
will increase by $13.709 million (65.6%) from March 31, 1997, to March 31, 2000,
after an estimated withdrawal of approximately $800,000 of deposits for stock
purchases. The Bank intends to market its services and products more
aggressively, including opening a branch.
Building permit information was not available. However, projected
population and household income growth rates in Lexington First Federal's market
area portend ample lending opportunities.
Growth opportunities for Lexington First Federal can be assessed by
reviewing economic factors in its market area. The salient factors include
growth trends, economic trends, and competition from other financial
institutions. We have reviewed these factors to assess the potential for the
market area. In assessing the growth potential of the Bank, we must also assess
the willingness and flexibility of Management to respond to the competitive
factors that exist in the market area. Our analysis of the economic potential
and the potential of Management affects the valuation of the Bank. The Board of
Directors has demonstrated its flexibility through its decision to restructure
its Executive Management, complete its stock conversion, and convert to a
national bank charter.
2
FERGUSON & COMPANY Section II.
- ------------------ -----------
Table II.1-Demographic Trends
Key Economic Indicator
United States, Tennessee, Henderson County, and Zip Code 38351
=======================================================================================================
United Henderson Zip Code
Key Economic Indicator States Tennessee County 38351
- -------------------------------------------------------------------------------------------------------
Total Population, 2001 Est. 278,802,003 5,701,304 25,061 15,781
1996 - 2001 Percent Change, Est. 5.09 6.87 6.04 6.54
Total Population, 1996 Est. 265,294,885 5,335,034 23,633 14,812
1990 - 96 Percent Change, Est. 6.67 9.39 8.19 9.28
Total Population, 1990 248,709,873 4,877,185 21,844 13,554
- -------------------------------------------------------------------------------------------------------
Household Income, 2001 Est. 33,189 30,044 27,420 27,432
1996 - 2001 Percent Change, Est. (3.88) 0.98 4.80 5.00
Household Income, 1996 Est. 34,530 29,752 26,165 26,125
- -------------------------------------------------------------------------------------------------------
Per Capita Income, 1990 16,738 15,058 11,972 12,237
- -------------------------------------------------------------------------------------------------------
Household Income Distribution-2001 Est. (%)
$15,000 and less 20 23 26 26
$15,000 - $25,000 16 18 20 20
$25,000 - $50,000 34 34 38 38
$50,000 - $100,000 24 20 14 14
$100,000 - $150,000 4 3 1 2
$150,000 and over 2 2 0 0
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Unemployment rate, 1990 6.24 6.34 5.06 5.10
- -------------------------------------------------------------------------------------------------------
Median Age of Population, 1996 Est. 34.3 35.2 37.1 37.2
Median Age of Population, 1990 32.9 33.6 35.6 35.8
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Average Housing Value, 1990 79,098 70,769 47,701 49,740
- -------------------------------------------------------------------------------------------------------
Total Households, 2001 Est. 103,293,062 2,173,336 9,846 6,294
1996 - 2001 Percent Change, Est. 5.14 6.94 6.25 6.75
Total Households, 1996 98,239,161 2,032,277 9,267 5,896
1990 - 96 Percent Change, Est. 6.84 9.63 8.68 9.75
Total Households, 1990 91,947,410 1,853,752 8,527 5,372
- -------------------------------------------------------------------------------------------------------
Total Housing Units, 1990 101,641,260 2,026,067 9,278 5,831
% Vacant 10.07 8.51 8.09 7.84
% Occupied 89.93 91.49 91.91 92.16
% By Owner 57.78 62.24 73.28 70.19
% By Renter 32.15 29.25 18.62 21.97
=======================================================================================================
3
FERGUSON & COMPANY SECTION II.
- ------------------ -----------
Table II - Percent Employment by Industry
United States, Tennessee, and Henderson County
United Henderson
Industry States Tennessee County
================================== ========== ============ ==============
Construction/Agriculture/Mining 9.5 5.0 2.2
Manufacturing 17.7 20.6 46.9
Transportation/Utilities 7.1 6.0 2.5
Trade 21.2 23.0 19.0
Finance/Insurance 6.9 4.5 2.8
Services 32.7 25.9 13.1
Public Administration 4.9 15.0 13.5
4
FERGUSON & COMPANY Section II.
- ------------------ ----------
Table II.3 - Market Area Deposits
1996 1995 1994
-----------------------------------------
(in Thousands)
Henderson County, Tennessee
---------------------------
Lexington First FSB $ 20,778 $ 20,022 $ 19,472
-----------------------------------------
Number of Branches 1 1 1
Total Bank Deposits $ 251,687 $ 243,315 $ 232,337
-----------------------------------------
Number of Banks $ 3 $ 4 $ 4
Number of Branches 7 8 8
Total Credit Union Deposits $ 1,029 $ 946 $ 904
-----------------------------------------
Number of Credit Unions $ 1 $ 1 $ 1
Number of Branches 1 1 1
Total Market Area Deposits $ 273,494 $ 264,283 $ 252,713
=========================================
Lexington First FSB - Market Share
To Total Market Area Deposits 7.60% 7.58% 7.71%
=========================================
5
SECTION III
COMPARISON WITH PUBLICLY
TRADED THRIFTS
FERGUSON & COMPANY SECTION III.
- ------------------ ------------
III. COMPARISON WITH PUBLICLY TRADED THRIFTS
COMPARATIVE DISCUSSION
This section presents an analysis of Lexington First Federal Savings
Bank ("Lexington First Federal" or the "Bank") relative to a group of twelve
publicly traded thrift institutions ("comparative group"). Such analysis is
necessary to determine the adjustments that must be made to the pro forma market
value of Lexington First Federal's stock. Table III.1 presents a listing of the
comparative group with general information about the group. Table III.2
presents key financial indicators relative to profitability, balance sheet
composition and strength, and risk factors. Table III.3 presents a pro forma
comparison of Lexington First Federal to the comparative group. Exhibits III
and IV contain selected financial information on Lexington First Federal and the
comparative group. This information is derived from quarterly TFR's filed with
the OTS and call reports filed with the FDIC. The selection criteria and
comparison with the comparative group are discussed below.
Selection Criteria
Ideally, the comparative group would consist of thrifts in the same
geographic region with identical local economies, asset size, capital level,
earnings performance, asset quality, etc. However, there are few comparably
sized institutions with stock that is liquid enough to provide timely,
meaningful market values. Therefore, we have selected a group of comparatives
that are either listed on the New York Stock Exchange ("NYSE"), the American
Stock Exchange ("AMEX"), or Nasdaq. We excluded companies that are apparent
takeover targets and companies with unusual characteristics that tend to distort
both mean and median calculations. For example, we have excluded all companies
with losses during the trailing twelve months. We have also excluded mutual
holding companies (see Exhibit VI).
Because of the limited number of similar size thrifts with sufficient
trading volume, we looked for members of the comparative group among thrifts
with assets up to $75 million. The Southeast Region, which includes Tennessee,
had 4 thrifts that met the size requirements. We found 25 thrifts that met the
asset size requirements in the entire country (we consider 10 to be the minimum
number), and we retained 12 and eliminated 13 for the following reasons: (a) One
was BIF insured; (b) Two had not been stock owned long enough to file a
financial statement as a stock owned company; (c) One had agreed to be acquired;
(d) Four had non-performing assets in excess of 1.5% of assets; (e) Three had
loans to assets ratios below 50%; and (f) One had loans serviced in excess of
40% of assets. After eliminating the thrifts described above, there were
fifteen left. We then eliminated the three remaining with the most recent
conversion dates.
The principal source of data was SNL Securities, Charlottesville,
Virginia. There are approximately 420 publicly traded thrifts listed on NYSE,
AMEX, or Nasdaq. In developing statistics for the entire country, we eliminated
certain institutions that skewed the results, in order to make the data more
meaningful:
. We eliminated companies with losses,
. We eliminated indicated acquisition targets,
. We eliminated companies with price/earnings ratios in excess of 25,
and
. We eliminated companies that had not reported as a stock
institution for one complete year.
The resulting group of 254 publicly traded thrifts is included in Exhibit V.
The selected group of comparatives has sufficient trading volume to
provide meaningful price data. Nine of the comparative group members are located
in the Midwest and the others are located in the Southeast (1), Western (1), and
Northeast (1) Regions. With total assets of approximately $25.9 million,
Lexington First Federal is well below the group selected, which has average
assets of $55.0 million and
1
FERGUSON & COMPANY SECTION III.
- ------------------ ------------
median assets of $54.9 million. Lexington First Federal's assets after
conversion will be continue to be much smaller than the comparative group. Pro
forma assets at the midpoint are $28.1 million.
Profitability
Using the comparison of profitability components as a percentage of
average assets, Lexington First Federal was below the comparative group in net
income, .71% to .79%; net interest income, 3.57% to 3.80%; loss provisions, .11%
to .06%; and noninterest income, .11% to .21%. Lexington First Federal was above
the comparative group in operating expense, 1.92% to 2.35%; efficiency ratio,
52.11% to 60.53%; and core income, 1.07% to 1.02%. Lexington First Federal's
operating expense minus other income was 1.81% versus 2.14% for the comparative
group. After conversion, deployment of the proceeds will provide additional
income, and Lexington First Federal will compare more favorably with the
comparative group in terms of return on average assets, with a return of 1.23%
at the midpoint of the appraisal range. Pro forma return on average equity is
5.82% at the midpoint, versus a mean of 4.40% and median of 4.55% for the
comparative group.
As compared with the comparative group, Lexington First Federal has a
lower level of operating expense. Lexington First Federal is inferior (albeit
not to a significant extent) to the comparative group in all other areas of
operations shown on Table III.2. Lexington First Federal has no serious
impediments to earnings relative to the comparative group. The proceeds from
the stock sale will improve most of Lexington First Federal's operating ratios.
Balance Sheet Characteristics
The general asset composition of Lexington First Federal is similar to
that of the comparative group. Lexington First Federal has a slightly higher
level of passive investments with 34.13% of its assets invested in cash,
investments, and mortgage-backed securities, versus 31.13% for the comparative
group. Lexington First Federal has a lower percentage of its assets in loans, at
63.33% versus 66.84% for the comparative group. Lexington First Federal's
percentage of earning assets to interest costing liabilities is much lower than
that of the group. Lexington First Federal has 116.24% and the comparative
group averages 133.34%. After conversion, Lexington First Federal's ratio will
continue to be much lower than that of the group of comparatives.
The liability side differs mainly in that Lexington First Federal has
a lower percentage of borrowings, a higher percentage of deposits, and a lower
percentage of equity. Lexington First Federal has borrowings equal to 3.66% of
assets versus 6.95% for the comparative group and deposits equal to 80.50% of
assets versus 68.75% for the comparative group. Lexington First Federal's equity
is 15.12% of assets versus 23.29% for the comparative group. Lexington First
Federal's equity ratio after conversion will be in line with that of the
comparative group. Lexington First Federal's pro forma equity ratio at the
midpoint is 21.6%.
Risk Factors
Lexington First Federal and the comparative group have similar levels
of non-performing assets. Lexington First Federal's loan loss allowance is .86%
of net loans, which compares favorably with the comparative group at .60%.
Substantially all of Lexington First Federal's loans are fixed rate. Its one
year gap to assets is negative 53.77%, versus positive 3.40% for the comparative
group. The average for the comparative group is based on only three members that
reported their gap. Based on the Bank's rate shock analysis (see Rate Shock
analysis in Section I), its net portfolio value ("NPV") would decline 22% at a
200 basis point increase in rates and its NPV would decline 46% at a 400 basis
point increase in rates. Overall, we believe that Lexington First Federal's
interest rate risk management is inferior to that of the comparative group.
2
FERGUSON & COMPANY SECTION III.
- ------------------ ------------
Summary of Financial Comparison
Based on the above discussion of operational, balance sheet, and risk
characteristics of Lexington First Federal compared with the group, we believe
that Lexington First Federal's performance is level with that of the comparative
group. The conversion proceeds will improve several of Lexington First
Federal's financial aspects, and, after conversion, the Bank should exceed its
comparative group in most financial areas.
FUTURE PLANS
Lexington First Federal's future plans are to be a well capitalized
but leveraged, profitable institution with good asset quality and a commitment
to serving the needs of its trade area. The business plan projects that the
Bank will grow significantly, quickly leveraging the capital.
In recent years, Lexington First Federal has experienced moderate
growth. The Bank's business plan projects that it will experience significant
growth in loans, savings deposits, and liquidity. The rate of growth is
projected to range between 15% and 22% per year. The additional capital raised
by the sale of Common Stock will initially be used to purchase short term
investment securities.
Lexington First Federal's business plan calls for opening a new branch
during the June 1998 quarter. Increasing market penetration by increasing the
number of services and products available and the number of locations is the
most likely method to be employed to achieve growth on a long-term basis.
3
FERGUSON & COMPANY Table III.1 Section III.
- ------------------ Comparative General Characteristics ------------
Total Current Current
Number Assets Stock Market
Type of ($000) Price Value
Ticker Short Name City State Thrift (1) Offices MRQ IPO Date ($) ($M)
CKFB CKF Bancorp Inc. Danville KY Traditional 1 60,197 01/04/95 19.250 17.85
CRZY Crazy Woman Creek Bancorp Buffalo WY Traditional 1 52,042 03/29/96 13.500 13.57
CSBF CSB Financial Group Inc. Centralia IL Traditional 2 47,996 10/09/95 12.500 11.77
HBBI Home Building Bancorp Washington IN Traditional 2 46,804 02/08/95 21.000 6.54
HZFS Horizon Financial Svcs Corp. Oskaloosa IA Traditional 3 78,368 06/30/94 19.250 8.19
JOAC Joachim Bancorp Inc. De Soto MO Traditional 1 35,656 12/28/95 14.500 11.03
LONF London Financial Corporation London OH Traditional 1 37,937 04/01/96 14.875 7.66
MCBN Mid-Coast Bancorp Inc. Waldoboro ME Traditional 2 57,838 11/02/89 19.500 4.49
MIVI Mississippi View Holding Co. Little Falls MN Traditional 1 69,755 03/24/95 14.625 11.97
NSLB NS&L Bancorp Inc. Neosho MO Traditional 2 58,089 06/08/95 16.500 11.67
RELI Reliance Bancshares Inc. Milwaukee WI Traditional 1 46,836 04/19/96 8.250 20.86
SSB Scotland Bancorp Inc Laurinburg NC Traditional 2 68,924 04/01/96 16.250 29.90
Maximum 3 78,368 21.000 29.90
Minimum 1 35,656 8.250 4.49
Average 2 55,037 15.833 12.96
Median 2 54,940 15.563 11.72
(1) Made determination by reference to TAFS and BankSource reports. TAFS reports
are derived from quarterly reports filed with the OTS and BankSource reports are
derived from call reports filed with the FDIC. TAFS and BankSource are published
by Sheshunoff Information Services, Austin, Texas.
4
FERGUSON & COMPANY Section III.
- ------------------ ------------
Table III.2 - Key Financial Indicators
Lexington
First Federal
Savings Comparative
Bank Group
-------------- ------------
Profitability
(% of average assets)
Net income 0.71 0.79
Net interest income 3.57 3.80
Loss (recovery) provisions 0.11 0.06
Other operating income 0.11 0.21
Operating expense (2) 1.92 2.35
Efficiency ratio (2) 52.11 60.53
Core income ( excluding gains
and losses on asset sales) (1) 1.07 1.02
Balance Sheet Factors
(% of assets)
Cash and investments 21.77 26.76
Mortgage-backed securities 12.36 4.37
Loans 63.33 66.84
Savings deposits 80.50 68.75
Borrowings 3.66 6.95
Equity 15.12 23.29
Tangible equity 15.12 20.94
Risk Factors
(%)
Earning assets/costing liabilities 116.24 133.34
Non-performing assets/assets 0.54 0.43
Loss allowance/non performing assets 94.84 142.96
Loss allowance/loans 0.86 0.60
One year gap/assets (3) (53.77) 3.40
(1) Used appraisal earnings.
(2) Excluded $128,000 SAIF assessment and $20,000 abnormal retirement expense.
(3) Only three of the comparative group provided gap information.
5
FERGUSON & COMPANY Table III.3-Pro Forma Comparisons Section III.
- ------------------ Lexington First FSB ------------
As of June 20, 1997
Ticker Name Price Mk Value PE P/Book P/TBook P/Assets Div Yld
($) ($Mil) (X) (%) (%) (%) (%)
Lexington First Federal
-----------------------
Before Conversion N/A N/A N/A N/A N/A N/A N/A
Pro Forma Supermax 10.000 5.69 15.2 82.7 82.7 19.7 TBA
Pro Forma Maximum 10.000 4.95 13.7 76.7 76.7 17.4 TBA
Pro Forma Midpoint 10.000 4.30 12.3 70.8 70.8 15.3 TBA
Pro Forma Minimum 10.000 3.66 10.9 64.2 64.2 13.2 TBA
Comparative Group
-----------------
Averages 15.833 12.96 25.2 101.4 101.9 24.1 1.84
Medians 15.563 11.72 22.4 100.2 101.3 22.4 1.75
Tennessee Public Thrifts
------------------------
Averages 19.000 16.22 19.0 120.1 120.1 15.5 3.37
Medians 19.000 16.22 19.0 120.1 120.1 15.5 3.37
Southeast Region Thrifts
------------------------
Averages 21.633 91.93 17.1 145.3 152.2 17.1 2.46
Medians 20.875 69.84 16.7 140.0 141.2 15.4 2.41
All Public Thrifts
------------------
Averages 22.611 189.54 16.2 142.8 150.2 14.4 1.98
Medians 19.875 54.61 15.6 135.1 142.0 13.3 1.98
Comparative Group
-----------------
CKFB CKFBancorp-KY 19.250 17.85 22.9 116.0 116.0 29.7 2.29
CRZY CrazyWomanCreek-WY 13.500 13.57 19.9 93.6 93.6 26.1 2.96
CSBF CSBFinancialGrp-IL 12.500 11.77 52.1 97.8 103.7 24.5 -
HBBI HomeBldngBncrp-IN 21.000 6.54 15.9 105.6 105.6 14.0 1.43
HZFS HorizonFinSvcs-IA 19.250 8.19 13.8 99.6 99.6 10.5 1.66
JOAC JoachimBancorp-MO 14.500 11.03 51.8 106.7 106.7 30.9 3.45
LONF LondonFinCorp-OH 14.875 7.66 21.9 101.7 101.7 20.2 1.61
MCBN Mid-Coast Bncp-ME 19.500 4.49 10.0 90.2 90.2 7.8 2.67
MIVI MissViewHoldCo-MN 14.625 11.97 17.4 94.1 94.1 17.2 1.09
NSLB NS&LBancorp-MO 16.500 11.67 22.9 100.9 100.9 20.1 3.03
RELI RelianceBncshrs-WI 8.250 20.86 29.5 92.8 92.8 44.6 -
SSB ScotlandBancorp-NC 16.250 29.90 23.9 118.3 118.3 43.4 1.85
TBA - To be announced.
6
FERGUSON & COMPANY Table III.3 - Pro Forma Comparisons Section III.
- ------------------ -----------
Lexington First FSB
As of June 20, 1997
Ticker Name Assets Eq/A TEq/A EPS ROAA ROAE
($000) (%) (%) ($) (%) (%)
Lexington First Federal
-----------------------
Before Conversion 25,942 15.1 15.1 N/A 1.07 7.28
Pro Forma Supermax 28,897 23.8 23.8 0.66 1.29 5.52
Pro Forma Maximum 28,466 22.7 22.7 0.73 1.26 5.67
Pro Forma Midpoint 28,091 21.6 21.6 0.81 1.23 5.82
Pro Forma Minimum 27,716 20.6 20.6 0.92 1.21 5.99
Comparative Group
-----------------
Averages 55,037 23.3 23.2 0.83 1.02 4.40
Medians 54,940 21.8 21.8 0.70 0.90 4.55
Tennessee Public Thrifts
------------------------
Averages 104,488 12.9 12.9 1.00 0.79 6.08
Medians 104,488 12.9 12.9 1.00 0.79 6.08
Southeast Region Thrifts
------------------------
Averages 609,421 12.2 11.9 1.34 1.08 9.01
Medians 352,376 11.0 10.8 1.27 0.97 8.71
All Public Thrifts
------------------
Averages 1,448,618 10.6 10.3 1.50 0.98 9.83
Medians 404,982 9.2 8.9 1.28 0.92 9.03
Comparative Group
-----------------
CKFB CKFBancorp-KY 60,197 23.7 23.7 0.84 1.29 5.05
CRZY CrazyWomanCreek-WY 52,042 27.8 27.8 0.68 1.25 4.20
CSBF CSBFinancialGrp-IL 47,996 25.1 24.0 0.24 0.65 2.39
HBBI HomeBldngBncrp-IN 46,804 12.1 12.1 1.32 0.50 3.77
HZFS HorizonFinSvcs-IA 78,368 10.5 10.5 1.40 0.60 5.41
JOAC JoachimBancorp-MO 35,656 29.0 29.0 0.28 0.78 2.68
LONF LondonFinCorp-OH 37,937 19.9 19.9 0.68 1.08 5.10
MCBN Mid-Coast Bncp-ME 57,838 8.6 8.6 1.96 0.64 7.05
MIVI MissViewHoldCo-MN 69,755 18.3 18.3 0.84 1.01 5.54
NSLB NS&LBancorp-MO 58,089 19.9 19.9 0.72 0.74 3.45
RELI RelianceBncshrs-WI 46,836 48.0 48.0 0.28 1.88 3.30
SSB ScotlandBancorp-NC 68,924 36.7 36.7 0.68 1.77 4.89
Note: Stock prices are closing prices or last trade. Pro forma
calculations for Lexington First Fed. are based on sales at $10 a share
with a midpoint at full value of $4,300,000, minimum of $3,655,000, and
maximum of $4,945,000.
7
SECTION IV
CORRELATION OF MARKET
VALUE
FERGUSON & COMPANY Section IV.
- ------------------ -----------
IV. CORRELATION OF MARKET VALUE
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED
Certain factors must be considered to determine whether adjustments are
required in correlating Lexington First Federal's market value to the
comparative group. Those factors include financial aspects, market area,
management, dividends, liquidity, thrift equity market conditions, and
subscription interest.
This section addresses the aforementioned factors and the estimated pro
forma market value of the to-be-issued common shares and compares the resulting
market value of the Bank to the members of its comparative group and the
selected group of publicly held thrifts.
Financial Aspects
Section III includes a discussion regarding a comparison of Lexington
First Federal's earnings, balance sheet characteristics, and risk factors with
its comparative group. Table III.2 presents a comparison of certain key
indicators, and Table III.3 presents certain key indicators on a pro forma basis
after conversion.
As shown in Table III.2, from an earnings viewpoint, Lexington First
Federal is below its comparative group in net income, net interest income, loss
provisions, and noninterest income as a percentage of average assets. Lexington
First Federal is ahead of its comparative group in operating expense, efficiency
ratio, and core income as a percentage of average assets. Lexington First
Federal's core income is based on appraisal earnings which factors out unusual
or nonrecurring items and the comparative group's core income is computed on the
same basis, to the extent that the information is known. Lexington First
Federal's net interest income as a percent of assets is 3.57% versus 3.80% for
the comparatives. The difference is attributable to the relative capital levels
(i.e., Lexington First Federal has less in capital), which results in a
difference in the earning assets to costing liabilities ratio (116.24% for
Lexington First Federal versus 133.34% for the comparative group).
Lexington First Federal's loan loss provisions are above its
comparative group, with loss provisions of .11% of assets versus .06% of assets
for the comparative group. Lexington First Federal's other operating income is
.11% of average assets, versus .21% for the comparative group.
Lexington First Federal's operating expense ratio, at 1.92% of average
assets, is well below that of the comparative group, which is 2.35%. Lexington
First Federal's operating expense minus noninterest income is 1.81% versus 2.14%
for the comparative group.
After Lexington First Federal completes its stock conversion, its core
income as a percentage of average assets will increase. Table III.3 projects
that Lexington First Federal's return on assets will be 1.23% at the midpoint,
versus a mean of 1.02% and median of .90% for the comparative group.
Lexington First Federal's pro forma equity to assets ratio at the
midpoint is 21.6%, versus a mean of 23.3% and median of 21.8% for the
comparative group, also making it difficult for the Bank to achieve a reasonable
return on equity. Lexington First Federal's pro forma return on equity is 5.82%
at the midpoint versus a mean of 4.40% and median of 4.55% for the comparative
group. Return on equity for the comparative group and pro forma return on equity
for Lexington First Federal is low because of the inordinately high capital
level of the group.
Lexington First Federal's recorded earnings have been adjusted for
appraisal purposes. The Bank recorded severance expenses and the SAIF resolution
assessment.
1
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.1 - Appraisal Earnings Adjustments
Net income, year ended March 31, 1997 $184,000
Plus SAIF assessment 128,000
Plus severance paid to retiring officer 20,000
Less applicable taxes on above adjustments at 36.0% -53,000
---------------
Appraisal earnings, year ended March 31, 1997 $279,000
===============
Lexington First Federal's asset composition is slightly more passive
than the comparative group. Lexington First Federal has a slightly lower ratio
of loans to assets, slightly higher ratio of investments and mortgage-backed
securities to assets, higher ratio of deposits to assets, lower ratio of
borrowings to assets, and lower ratio of equity to assets. From the risk factor
viewpoint, Lexington First Federal is inferior to the comparative group.
Lexington First Federal and the comparative group have similar levels of non
performing assets. Lexington First Federal's loan loss allowance is .86% of net
loans, comparing favorably with the comparative group, which is 0.60%. Its ratio
of interest earning assets to interest bearing liabilities (116.24%) is well
below the comparative group (133.34%). Lexington First Federal's ratio will
continue to be below the comparative group after conversion. From an interest
rate risk factor, Lexington First Federal probably has more exposure than the
comparative group.
We believe that no adjustment is necessary relative to financial
-------------
aspects of Lexington First Federal.
Market Area
Section II describes Lexington First Federal's market area.
We believe that an upward adjustment is required for Lexington First
-----------------
Federal's market area.
Management
The President, who functions as CEO, joined Lexington First Federal in
early 1997. He had 30 years of commercial banking experience prior to joining
Lexington First Federal. He has served as CEO of three commercial banks and
served as a bank examiner for 10 years.
We believe that no adjustment is required for Lexington First Federal's
-------------
management.
Dividends
Table III.3 provides dividend information relative to the comparative
group and the thrift industry as a whole. The comparative group is paying a mean
yield on price of 1.84% and a median of 1.75%, while all public thrifts are
paying a mean of 1.98% and median of 1.98%. Lexington First Federal has not yet
determined what its dividend policy will be. However, based on its history of
paying dividends since the first step of the mutual holding conversion, we
assume that the Bank will pay a market rate dividend.
We believe that no adjustment is required relative to Lexington First
-------------
Federal's intention to pay dividends.
2
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Liquidity
The first step of the holding company conversion was completed in 1992,
with a limitation of 35 on the number of stockholders. With the small number of
stockholders and shares outstanding, no market for the common stock currently
exists. Although the Holding Company expects its shares to be quoted through the
OTC Electronic Bulletin Board, there can be no assurance that a liquid trading
market will develop.
A public market having the desirable characteristics of depth,
liquidity, and orderliness depends upon the presence, in the market place, of
both willing buyers and sellers of the Common Stock. These characteristics are
not within the control of the Bank or the market.
The peer group includes companies with sufficient trading volume to
develop meaningful pricing characteristics for the stock. The market value of
the comparative group ranges from $4.49 million to $29.90 million, with a mean
value of $12.96 million. The midpoint of Lexington First Federal's valuation
range is $4.3 million at $10 a share, or 430,000 shares.
We believe a slight downward adjustment is required relative to the
-------------------
liquidity of Lexington First Federal's stock.
Thrift Equity Market Conditions
The SNL Thrift Index is summarized in Figure IV.1. As the table
demonstrates, the Thrift Index has performed well since the end of 1990. The
Index has grown as follows: Year ended December 31, 1991--increased 49.0% from
96.6 to 143.9; Year ended December 31, 1992--increased 39.7% to 201.1; Year
ended December 31, 1993--increased 25.6% to 252.5; Year ended December 31,
1994--decreased 3.1% to 244.7; Year ended December 31, 1995--increased 53.9% to
376.5; Year ended December 31, 1996--increased 28.4% to 483.6; and Period ended
June 20, 1997--increased 29.4% to 625.9. It is market value weighted with a base
value of 100 as of March 31, 1984.
As shown in Figure IV.1, which is a graph of the SNL Thrift Index
covering from December 31, 1990 through June 20, 1997, the market, as depicted
by the index, has experienced fluctuations recently. It dipped in the latter
part of 1994, but recovered during the first quarter of 1995. During 1995, the
Index continued a more robust increase and moved from 244.7 at year end 1994 to
376.5 by December 31, 1995, an increase of 53.9%. However, the Index was flat
for the first six months of 1996, experiencing a decline during the June 30,
1996 quarter, but it has picked up since June 30, 1996.
TENNESSEE ACQUISITIONS
Table IV.2 provides information relative to acquisitions of financial
institutions in Tennessee between January 1, 1996 and May 30, 1997. There were 3
thrift acquisitions and 6 bank acquisitions announced during that time frame.
Currently, there is 1 publicly held thrift in the State of Tennessee. There are
60 publicly held thrifts in the Southeast region of the country. Bank
acquisitions in Tennessee since January 1, 1996, have averaged 193.7% of
tangible book value and 22.5 times earnings. The median price has been 174.4% of
tangible book value and 21.5 times earnings. Thrifts generally sell at lower
price/book multiples than do banks. Thrifts in Tennessee during that period have
averaged 200.4% of tangible book value and 18.0 times earnings. The relationship
between bank and thrift acquisitions was skewed during the period because of the
small number of acquisitions and the fact that one thrift acquisition, Leader
Financial, was much larger is size than the other eight acquisitions combined.
EFFECT OF INTEREST RATES ON THRIFT STOCK
The current interest rate environment and the anticipated rate
environment will affect the pricing of thrift stocks and all other interest
sensitive stocks. As the economy continues to expand, the fear of inflation can
return. The Federal Reserve, in its resolve to curb inflation, has increased
rates in the past, but has more
3
FERGUSON & COMPANY Section IV.
- ------------------ -----------
recently relented to vagaries of the economy and passed several opportunities to
increase rates, until March 25, 1997, when the Federal Open Market Committee
("FOMC") increased the discount rate 25 basis points. In some minds, this was an
attempt to head off inflation. According to the FOMC, "This action was taken in
light of persisting strength in demand, which is progressively increasing the
risk of inflationary imbalances developing in the economy that would eventually
undermine the long expansion."/1/ This increase was clearly telegraphed by
Chairman Greenspan, who voiced concern about the levels of the equity markets.
Following the March 25 increase, unemployment rates were announced at the 5.2%
level, down from the 5.5% level at the beginning of 1996 and significantly down
from the 6.7% level at the beginning of 1994./2/ The good news about
unemployment gave way to speculation that the March 25 increase was just the
first of at least two or three increases, and the speculation was given some
credence at that time by rises in the Employment Cost Index, increases in Unit
Labor Cost and an upward trend in the price of crude oil. By April 1, 1997,
following the rate increase, the equities markets had lost all of the gains
registered since the first of the year. By the end of April 1997, the market had
begun a rebound and has trended upward since then. There have been specific days
of price adjustment, but the overall trend it up. During this last market rally,
the market has adjusted for rate increases that have not materialized, and has
overcome good economic news that caused inflation to be discussed once again.
However, the current economic news has produced no indications that inflation is
a problem, and the Federal Reserve has been curiously silent on the subject of
rates. Perhaps the lack of bad economic news, a growing economy, no inflation
indicated, and Fed rhetoric articulates the possibility that interest rates will
not be increased at the next opportunity, allowing the markets to continue their
upward trend toward new record highs.
The thrift equities market is following the market in general. However,
the thrift equities market can continue to be influenced by the speculation that
there will eventually be a buyout, and the fact that thrift IPO stock can be
purchased at significant discounts from book value. These two facts could keep
the thrift equities market from falling as much as the other general markets.
However, if the merger and acquisition levels drop, if there were another sharp
and sustained rise in the interest rates, or if other equity markets have
protracted adjustments, the market in thrift equities would also adjust.
What is likely to happen in the short to intermediate term is that
rates will float around current levels and trend upward. The yield curve will
continue to be of normal configuration. Most economists feel that a rise of
three quarters of one percent on the short side and less on the long side could
severely dampen the economy. However, the March increase in rates has not
produced any slowing of the economy or general equity market performance.
Currently, we are in the second longest post-war expansion on record. The last
decision to raise rates had an immediate and significant impact upon the stock
market, but within a short period of time, the market regained its losses and
then continued to set new records. The Fed, by taking no action on the rising
value of the dollar against other currencies, is probably slowing the economy
furtively, without raising rates. The Federal Reserve Bank is allowing the U. S.
Dollar to remain strong against the Yen and European currencies. Although not as
effective as a rate increase, a continuing strong dollar will have a natural
economic "braking effect" on the U.S. economy. Goods and services produced by
countries with weaker currencies would become cheaper on the global economy and
more competitive to U.S. produced goods. The net result would be a market
induced slowing of the economy--until the U.S. Dollar loses its strength and
values of currencies are adjusted.
Thrift net interest margins will narrow if the cost of funds starts to
rise more quickly than currently anticipated. Since 1993, thrifts have enjoyed
profitability without having to stray from their traditional lending roles and
without developing new loan products. Access to mortgage-backed securities and
derivatives has made it possible for many to be profitable without making loans
in significant volumes. With
- --------
/1/ US Financial Data, published by the Research Division of the Federal Reserve
Bank of St. Louis, MO.
/2/ National Economic Trends, The Federal Reserve Bank of St. Louis, MO.
4
FERGUSON & COMPANY Section IV.
- ------------------ -----------
reduced deposit insurance premiums, perhaps they will be more willing to compete
for customer deposits. However, even with portfolios replete with adjustable
rate loans and adjustable mortgage-backed securities, there is a fear that a
quickly rising rate environment can cause the cost of funds to rise faster than
the adjustable assets can accommodate, and accordingly, spreads would narrow. If
rates rise in a slow and orderly manner, then the negative impact on spreads
will be less and the adjustable rate assets will have time to rise and protect
rate spreads.
As clearly illustrated, the SNL Thrift Index has performed well over
the last six years. It moved in tandem with all interest sensitive stocks and
reflected the weakness in the market as investors began to consider the
importance of increases in rates and their impact on the net interest margins of
thrifts. The clear implication is that rising interest rates will have a
negative impact on earnings.
Figure IV.2 graphically displays the rate environment since
November 18, 1996. At that time, the yield curve was relatively flat, with only
a 125 basis point ("BP") difference between the federal funds rate and the 30
year treasury at November 18, 1996. Since that time, the yield curve has changed
very little with a 108 BP spread between the federal funds rate and the 30 year
treasury rate at June 20, 1997.
At November 18, 1996, the spread between the 1 year T-Bill and the 5
year T-Note was 57 BP, and the spread between the 5 year T-Note and the 30 year
bond was 50 BP. On June 20, 1997, the spreads were 77 and 41 BP, respectively.
From November 18, 1996 to June 20, 1997, the Fed Funds rate increased
41 BP and the Prime Rate increased 25 BP.
Increased cost of funds will serve to narrow the net interest margins
of thrifts. A thrift's ability to maintain net interest margins through business
cycles is important to investors, unless thrifts can offset the decline in net
interest income by other sources of revenue or reductions in noninterest
expense. The former is difficult and the latter is unlikely.
Lexington First Federal, with its interest rate risk position combined
with its equity position (even on a pro forma basis), is more vulnerable to
rising rates than most.
During 1993, conversion stocks often experienced first day 30% or more
increases in value. As Table IV.3 shows, recent price appreciation has
approached the 1993 levels. Table IV.3 provides information on 15 conversions
completed since November 30, 1996. The average change in price since conversion
is a gain of 48.0% and the median change is a gain of 42.5%. Within that group,
all have increased in value with a range of a low of 29.4% to a high of 100.0%.
The average increase in value at one day, one week, and one month after
conversion has been 31.5%, 34.3%, and 39.5%, respectively. The median increase
in value at one day, one week, and one month after conversion has been 29.7%,
32.0%, and 37.5%, respectively.
Because of the lack of complete earnings information on recent
conversions, a meaningful comparison of the price earnings ratios is difficult
to make. However, there is sufficient information to review the price to book
ratio. The average price-to-book ratio, as of June 20, 1997, is 103.8% and the
median is 99.6%. That compares to the offering price to pro forma book, where
the average was 71.7% and the median was 72.0%.
Table IV.4 provides information on the 9 pink sheet conversions
completed since May 31, 1996. Within that group, all have increased in value
with a range of a low of 22.5% to a high of 65.0%. The average increase in value
at one day, one week, and one month after conversion has been 16.6%, 19.0%, and
19.8%, respectively. The median increase in value at one day, one week, and one
month after conversion has been 15.0%, 22.5%, and 17.5%, respectively.
We believe a downward adjustment is required for the new issue
-------------------
discount.
5
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Adjustments Conclusion
Adjustments Summary
- -------------------------------------------------------------------------------
No Change Upward Down
Financial Aspects X
Market Area X
Management X
Dividends X
Liquidity X
Thrift Equity Market Conditions X
- -------------------------------------------------------------------------------
Valuation Approach
Typically, investors rely on the price/earnings ratio as the most
appropriate indicator of value. We consider price/earnings to be one of the
important pricing methods in valuing a thrift stock. Price/book is a well
recognized yardstick for measuring the value of financial institution stocks in
general. Another method of viewing thrift values is price/assets, which is more
meaningful in situations where the subject is thinly capitalized. Given the
healthy condition of the thrift industry today, more emphasis is placed on
price/earnings and price/book. Generally, price/earnings and price/book should
be considered in tandem.
Table III.3 presents Lexington First Federal's pro forma ratios and
compares them to the ratios of its comparative group and the publicly held
thrift industry as a whole. Lexington First Federal's net earnings for the
twelve months ended March 31, 1997, were approximately $184,000, with
adjustments of $95,000 required to determine appraisal earnings of $279,000.
The comparative group traded at an average of 25.2 times earnings at
June 20, 1997, and at 101.4% of book value. The comparative group traded at a
median of 22.4 times earnings and a median of 100.2% of book value. At the
midpoint of the valuation range, Lexington First Federal is priced at 12.3 times
earnings and 70.8% of book value. At the maximum end of the range, Lexington
First Federal is priced at 13.7 times earnings and 76.7% of book value. At the
supermaximum, Lexington First Federal is priced at 15.2 times earnings and 82.7%
of book value.
The midpoint valuation of $4,300,000 represents a discount of 30.2%
from the average and a discount of 29.3% from the median of the comparative
group on a price/book basis. The price/earnings ratio for Lexington First
Federal at the midpoint represents a discount of 51.2% from the comparative
group's mean and a discount of 45.1% from the median price/earnings ratio.
The maximum valuation of $4,945,000 represents a discount of 24.4% from
the average and 23.5% from the median of the comparative group on a price/book
basis. The price/earnings ratio for Lexington First Federal at the maximum
represents a discount of 45.6% from the average and a discount of 38.8% from the
median of the comparative group.
As shown in Table IV.3, conversions closing since November 30, 1996,
have closed at an average price to book ratio of 71.7% and median of 72.0%.
Lexington First Federal's pro forma price to book ratio is 70.8% at the
midpoint, 76.7% at the maximum, and 82.7% at the supermaximum of the range. At
the midpoint, Lexington First Federal is 1.3% below the average and 1.7% below
the median. At the maximum of the range, Lexington First Federal is 7.0% above
the average and 6.5% above the median. At the
6
FERGUSON & COMPANY Section IV.
- ------------------ -----------
supermaximum of the range, Lexington First Federal's pro forma price to book
ratio is 15.3% above the average and 14.9% above the median.
As shown in Table IV.4, pink sheet conversions closing since May 31,
1996, have closed at an average price to book ratio of 67.4% and median of
68.8%. Lexington First Federal's pro forma price to book ratio is 70.8% at the
midpoint, 76.7% at the maximum, and 82.7% at the supermaximum of the range. At
the midpoint, Lexington First Federal is 5.0% above the average and 2.9% above
the median. At the maximum of the range, Lexington First Federal is 13.8% above
the average and 11.5% above the median. At the supermaximum of the range,
Lexington First Federal's pro forma price to book ratio is 22.7% above the
average and 20.2% above the median.
Conversion to Bank and Comparison to Banks
Part of Lexington First Federal's plan is the conversion to a national
bank charter. We have conducted some analysis work on other thrifts that
converted to stock and to national bank charters at the time of stock
conversion. They include Community of Olney, Illinois, Heartland of Herrin,
Illinois, and IFB ("Investors") of Chillicothe, Missouri (see Exhibit IX).
At the time of conversion, Community had already made much progress in
converting its balance sheet structure to a bank. Its loan portfolio was only
47% real estate, with the balance in consumer, agricultural, and commercial
non-real estate loans. It apparently was having difficulty meeting the qualified
thrift lender test. Heartland looked much more like a traditional thrift, with
96% of its loans in real estate loans. IFB also looked more like a traditional
thrift, with 87.6% of its loans in real estate. Since conversion, however,
Heartland's stock has performed much better than Community. IFB is doing well;
however, it completed its conversion six months ago, while Community completed
its conversion two years ago. Part of the performance differences relates to
acquisition interest.
Lexington First Federal's loan portfolio is 97.8% real estate. Its
assets are those of a traditional thrift. We developed the valuation for
Lexington First Federal as a thrift, and we believe that its pricing ratios
should be commensurate with other thrifts, based on an analysis of the
institution.
Table IV.6 provides a comparison of Lexington First Federal's pricing
ratios to those of other charter flips (Community, Heartland, and IFB) on both
current pricing ratios and conversion pricing ratios, all pink sheet banks,
Southeast Region pink sheet banks, and Tennessee pink sheet banks. Lexington
First Federal's price to earnings ratio compares well with four of the five
groups of banks. Its price to book ratio compares well with the conversion
pricing of the other charter flips.
Valuation Conclusion
We believe that as of June 20, 1997, the estimated pro forma market
value of Lexington First Federal was $4,300,000. The resulting valuation range
was $3,655,000 at the minimum to $4,945,000 at the maximum, based on a range of
15% below and 15% above the midpoint valuation. The supermaximum is $5,686,750,
based on 1.15 times the maximum. Pro forma comparisons with the comparative
group are presented in Table III.3 based on calculations shown in Exhibit VII.
Based on the midpoint value, the approximate 60.54% (135,000 divided by
222,993) ownership interest being sold in the current offering amounts to
$2,603,220, which will provide for the sale of 260,322 shares at $10.00 per
share. The remaining 169,678 shares (39.46%) will be exchanged for stock
currently outstanding. This would preserve the ownership percentage in Lexington
First Federal represented by Public shares. The exchange ratio would be 1.928 at
the midpoint (see Table IV.7).
7
FERGUSON & COMPANY Table IV.2 - Tennessee Acquisitions Section IV.
- ------------------ -----------
(Announced Since January 1, 1996)
Bank/
Buyer City ST Thrift Seller City ST
- ----- ---- -- ------ ------ ---- --
Southeast Bancorp Inc. Corbin KY Bank First Bank of East Tennessee La Follette TN
Union Planters Corporation Memphis TN Bank Citizens of Hardeman County Financial Services Whiteville TN
First American Corporation Nashville TN Bank Hartsville Bancshares Hartsville TN
Union Planters Corporation Memphis TN Bank SBT Bancshares, Inc. Selmer TN
First Commercial Corporation Little Rock AR Bank W.B.T. Holding Company Memphis TN
Chester County Bancshares, Inc. Henderson TN Bank Southwest Tennessee Bancshares Adamsville TN
Union Planters Corporation Memphis TN Bank Leader Financial Corp. Memphis TN
Union Planters Corporation Memphis TN Bank Franklin Financial Group, Inc. Morristown TN
Peoples First Corporation Paducah KY Bank Guaranty Federal Savings Bank Clarksville TN
Maximum--combined
Minimum--combined
Average--combined
Median--combined
Average--banks
Median--banks
Average--thrifts
Median--thrifts
8
FERGUSON & COMPANY Table IV.2 - Tennessee Acquisitions Section IV.
- ------------------ (Announced Since January 1, 1996) -----------
Buyer Seller Ann'd Ann'd
Total Total Completed/ Deal Deal
Bank/ Assets Assets Announce Terminated Value Pr/Bk
Seller Thrift ($000) ($000) Date Status Date ($M) (%)
- ------ ------ ------ ------ ---- ------ ---- ----- -----
First Bank of East Tennessee Bank 216,301 82,065 2/4/97 Pending NA 18.80 161.6
Citizens of Hardeman County Financial Services Bank 11,499,785 57,751 12/13/96 Pending NA NA NA
Hartsville Bancshares Bank 9,873,845 91,447 10/11/96 Completed 1/1/97 12.00 209.7
SBT Bancshares, Inc. Bank 11,367,625 97,432 10/9/96 Pending NA 21.70 174.4
W.B.T. Holding Company Bank 5,221,391 274,150 10/4/96 Completed 2/13/97 45.00 NA
Southwest Tennessee Bancshares Bank 33,653 32,414 4/5/96 Pending NA 2.80 NA
Leader Financial Corp. Thrift 11,277,116 3,098,577 3/8/96 Completed 10/1/96 504.70 192.5
Franklin Financial Group, Inc. Thrift 11,277,116 135,822 3/6/96 Completed 10/1/96 20.80 152.5
Guaranty Federal Savings Bank Thrift 1,269,003 54,875 2/20/96 Completed 8/30/96 6.60 219.7
Maximum--combined 11,499,785 3,098,577 504.70 219.7
Minimum--combined 33,653 32,414 2.80 152.5
Average--combined 6,892,871 436,059 79.05 185.1
Median--combined 9,873,845 91,447 19.80 183.5
Average--banks 6,368,767 105,877 20.06 181.9
Median--banks 7,547,618 86,756 18.80 174.4
Average--thrifts 7,941,078 1,096,425 177.37 188.2
Median--thrifts 11,277,116 135,822 20.80 192.5
9
FERGUSON & COMPANY Table IV.2 - Tennessee Acquisitions Section IV.
- ------------------ -----------
(Announced Since January 1, 1996)
Ann'd Ann'd Final Final Final Final
Deal Pr/ Deal Pr/ Deal Deal Deal Pr/ Deal Pr/
Tg Bk 4-Qtr Value Pr/Bk Tg Bk 4-Qtr
Seller (%) EPS (x) ($M) (%) (%) EPS (x)
- ------ --------- --------- -------- -------- --------- --------
First Bank of East Tennessee 161.6 29.8 NA NA NA NA
Citizens of Hardeman County Financial Services NA NA NA NA NA NA
Hartsville Bancshares 245.2 21.5 12.40 216.2 252.7 22.2
SBT Bancshares, Inc. 174.4 16.2 NA NA NA NA
W.B.T. Holding Company NA NA 52.80 NA NA NA
Southwest Tennessee Bancshares NA NA NA NA NA NA
Leader Financial Corp. 192.5 13.1 571.10 202.2 202.2 12.4
Franklin Financial Group, Inc. 188.9 23.3 23.60 196.1 NA NA
Guaranty Federal Savings Bank 219.7 17.6 6.50 204.1 204.1 13.2
Maximum--combined 245.2 29.8 571.10 216.2 252.7 22.2
Minimum--combined 161.6 13.1 6.50 196.1 202.2 12.4
Average--combined 203.9 21.6 206.25 206.9 227.9 17.5
Median--combined 190.7 19.5 23.60 203.1 204.1 13.2
Average--banks 193.7 22.5 32.60 216.2 252.7 22.2
Median--banks 174.4 21.5 32.60 216.2 252.7 22.2
Average--thrifts 200.4 18.0 200.40 200.8 203.1 12.8
Median--thrifts 192.5 17.6 23.60 202.2 203.1 12.8
10
FERGUSON & COMPANY Table IV.3 - Recent Conversions Section IV.
- ------------------ (Completed since November 30, 1996) -----------
Conversion Gross Offering
Assets Proceeds Price
Ticker Short Name State IPO Date ($000) ($000) ($)
HCBB HCB Bancshares Inc. AR 05/07/97 171,241 26,450 10.000
PSFC Peoples-Sidney Financial Corp. OH 04/28/97 86,882 17,854 10.000
NSBC NewSouth Bancorp, Inc. NC 04/08/97 194,139 43,643 15.000
HMLK Hemlock Federal Financial Corp IL 04/02/97 146,595 20,763 10.000
GSLA GS Financial Corp. LA 04/01/97 86,521 34,385 10.000
MRKF Market Financial Corporation OH 03/27/97 45,547 13,357 10.000
EFBC Empire Federal Bancorp Inc. MT 01/27/97 86,810 25,921 10.000
FAB FirstFed America Bancorp Inc. MA 01/15/97 723,778 87,126 10.000
RSLN Roslyn Bancorp Inc. NY 01/13/97 1,596,744 423,714 10.000
AFBC Advance Financial Bancorp WV 01/02/97 91,852 10,845 10.000
HCFC Home City Financial Corp. OH 12/30/96 55,728 9,522 10.000
CENB Century Bancorp Inc. NC 12/23/96 81,304 20,367 50.000
SCBS Southern Community Bancshares AL 12/23/96 64,381 11,374 10.000
BFFC Big Foot Financial Corp. IL 12/20/96 194,624 25,128 10.000
RIVR River Valley Bancorp IN 12/20/96 86,604 11,903 10.000
Maximum 1,596,744 423,714 50.000
Minimum 45,547 9,522 10.000
Average 247,517 52,157 13.000
Median 86,882 20,763 10.000
11
FERGUSON & COMPANY Table IV.3 - Recent Conversions Section IV.
- ------------------ -----------
(Completed since November 30, 1996)
Conversion Pricing Ratios
-------------------------------------------------------------
Price/ Price/ Price/ Price/ Current Current Current
Pro-Forma Pro-Forma Pro-Forma Adjusted Stock Price/ Price/ Tang
Book Value Tang. Book Earnings Assets Price Book Value Book Value
Ticker (%) (%) (x) (%) ($) (%) (%)
HCBB 72.0 72.0 29.0 13.4 12.938 NA NA
PSFC 71.2 71.2 11.5 17.0 13.625 NA NA
NSBC 78.7 78.7 22.1 18.4 24.500 NA NA
HMLK 71.6 71.6 37.5 12.4 13.250 NA NA
GSLA 63.8 63.8 38.7 28.4 15.250 NA NA
MRKF 71.1 71.1 26.2 22.7 13.000 89.1 89.1
EFBC 68.1 68.1 21.5 23.0 13.500 88.0 88.0
FAB 72.0 72.0 13.6 10.7 17.000 121.2 121.2
RSLN 72.0 72.0 9.3 21.0 20.000 142.1 142.8
AFBC 71.1 71.1 16.8 10.6 14.250 96.6 96.6
HCFC 71.2 71.2 13.7 14.6 14.000 87.2 87.2
CENB 72.1 72.1 18.9 20.0 69.250 94.3 94.3
SCBS 74.4 74.4 14.5 15.0 14.250 105.2 105.2
BFFC 72.7 72.7 33.1 11.4 16.000 111.5 111.5
RIVR 73.0 73.0 15.2 12.1 14.750 102.6 104.2
Maximum 78.7 78.7 38.7 28.4 69.250 142.1 142.8
Minimum 63.8 63.8 9.3 10.6 12.938 87.2 87.2
Average 71.7 71.7 21.4 16.7 19.038 103.8 104.0
Median 72.0 72.0 18.9 15.0 14.250 99.6 100.4
12
FERGUSON & COMPANY Table IV.3 - Recent Conversions Section IV.
- ------------------ -----------
(Completed since November 30, 1996)
Post Conversion Increase (Decrease)
Price One Price One Price One -------------------------------------------------------------
Day After Week After Month After One One One To
Conversion Conversion Conversion Day Week Month Date
Ticker ($) ($) ($) (%) (%) (%) (%)
HCBB 12.625 12.750 12.875 26.3 27.5 28.8 29.4
PSFC 12.563 12.875 13.250 25.6 28.8 32.5 36.3
NSBC 20.250 22.000 23.875 35.0 46.7 59.2 63.3
HMLK 12.875 12.875 13.000 28.8 28.8 30.0 32.5
GSLA 13.375 13.750 14.000 33.8 37.5 40.0 52.5
MRKF 12.938 12.250 12.625 29.4 22.5 26.3 30.0
EFBC 13.250 13.500 13.750 32.5 35.0 37.5 35.0
FAB 13.625 14.125 14.875 36.3 41.3 48.8 70.0
RSLN 15.000 15.938 16.000 50.0 59.4 60.0 100.0
AFBC 12.875 12.938 14.000 28.8 29.4 40.0 42.5
HCFC NA 12.500 13.500 NA 25.0 35.0 40.0
CENB 62.625 66.000 65.125 25.3 32.0 30.3 38.5
SCBS 13.000 13.750 13.500 30.0 37.5 35.0 42.5
BFFC 12.313 12.500 13.875 23.1 25.0 38.8 60.0
RIVR 13.688 13.875 15.000 36.9 38.8 50.0 47.5
Maximum 62.625 66.000 65.125 50.0 59.4 60.0 100.0
Minimum 12.313 12.250 12.625 23.1 22.5 26.3 29.4
Average 17.214 17.442 17.950 31.5 34.3 39.5 48.0
Median 13.125 13.500 13.875 29.7 32.0 37.5 42.5
13
FERGUSON & COMPANY Table IV.4 - Recent Pink Sheet Conversions Section IV.
- ------------------ -----------
(Completed since May 31, 1996)
Conversion
Assets IPO Proceeds IPO Price
Ticker Short Name State IPO Date ($000) ($000) ($)
SFBK SFB Bancorp Inc. TN 05/30/97 46,579 7,670 10.000
RFFC Rocky Ford Financial Inc. CO 05/22/97 20,388 4,232 10.000
VBAS Vermilion Bancorp Inc. IL 03/26/97 35,459 3,968 10.000
IFBH IFB Holdings Inc. MO 12/30/96 52,587 5,925 10.000
FALN First Allen Parish Bncp Inc. LA 09/30/96 29,605 2,645 10.000
MDWB Midwest Savings Bank IL 09/23/96 36,354 1,918 10.000
LNXC Lenox Bancorp Incorporated OH 07/18/96 43,149 4,256 10.000
ALGC Algiers Bancorp Incorporated LA 07/09/96 42,450 6,480 10.000
FFFB First Federal Finl Bncp Inc. OH 06/04/96 51,296 6,718 10.000
Maximum 52,587 7,670 10.000
Minimum 20,388 1,918 10.000
Average 39,763 4,868 10.000
Median 42,450 4,256 10.000
14
FERGUSON & COMPANY Table IV.4 - Recent Pink Sheet Conversions Section IV.
- ------------------ -----------
(Completed since May 31, 1996)
Conversion Pricing Ratios
----------------------------------------------------
Price/ Price/ Price/ Price/ Current Current Current Current
Pro-Forma Pro-Forma Pro-Forma Adjusted Stock Price/ Price/ Tang Price/
Book Value Tang. Book Earnings Assets Price Book Value Book Value Earnings
Ticker (%) (%) (x) (%) ($) (%) (%) (x)
SFBK 69.6 69.6 17.7 14.1 14.000 NA NA NA
RFFC 68.8 68.8 17.7 17.2 13.500 NA NA NA
VBAS 71.4 71.4 NA 10.1 12.250 78.1 78.1 NA
IFBH 73.1 73.1 14.3 10.1 12.500 86.9 86.9 13.0
FALN 65.5 65.5 8.8 8.2 16.500 101.0 101.0 14.7
MDWB 65.1 65.1 NA 5.0 14.500 96.0 96.0 12.5
LNXC 59.6 59.6 40.9 9.0 14.875 87.6 87.6 20.7
ALGC 69.0 69.0 18.8 13.2 13.000 86.5 86.5 32.5
FFFB 64.5 64.5 13.2 11.6 13.500 84.7 84.7 24.1
Maximum 73.1 73.1 40.9 17.2 16.500 101.0 101.0 32.5
Minimum 59.6 59.6 8.8 5.0 12.250 78.1 78.1 12.5
Average 67.4 67.4 18.8 10.9 13.847 88.7 88.7 19.6
Median 68.8 68.8 17.7 10.1 13.500 86.9 86.9 17.7
15
FERGUSON & COMPANY Table IV.4 - Recent Pink Sheet Conversions Section IV.
- ------------------ -----------
(Completed since May 31, 1996)
Post Conversion Increase (Decrease)
Price One Price One Price One ---------------------------------------------------------------
Day After Week After Month After One One One To
Conversion Conversion Conversion Day Week Month Date
Ticker ($) ($) ($) (%) (%) (%) (%)
SFBK 13.813 13.750 NA 38.1 37.5 NA 40.0
RFFC NA 13.125 13.500 NA 31.3 35.0 35.0
VBAS 12.375 12.250 12.125 23.8 22.5 21.3 22.5
IFBH 12.250 12.500 12.375 22.5 25.0 23.8 25.0
FALN 13.250 13.500 13.750 32.5 35.0 37.5 65.0
MDWB 10.250 11.000 11.125 2.5 10.0 11.3 45.0
LNXC 9.875 10.000 11.375 (1.3) -- 13.8 48.8
ALGC 10.750 10.250 11.063 7.5 2.5 10.6 30.0
FFFB 10.750 10.750 10.500 7.5 7.5 5.0 35.0
Maximum 13.813 13.750 13.750 38.1 37.5 37.5 65.0
Minimum 9.875 10.000 10.500 (1.3) -- 5.0 22.5
Average 11.664 11.903 11.977 16.6 19.0 19.8 38.5
Median 11.500 12.250 11.750 15.0 22.5 17.5 35.0
16
FERGUSON & COMPANY Table IV.5 Section IV.
- ------------------ -----------
Comparison of Pricing Ratios
Group Percent Premium
Lexington Compared to (Discount) Versus
First --------------------------------- ---------------------------------
Federal Average Median Average Median
------------- --------------- ---------------- ---------------- ----------------
Comparison of PE ratio at
midpoint to:
- ----------------------------------------------
Comparative group 12.3 25.2 22.4 (51.2) (45.1)
Tennessee thrifts 12.3 19.0 19.0 (35.3) (35.3)
Southeast Region thrifts 12.3 17.1 16.7 (28.1) (26.3)
All public thrifts 12.3 16.2 15.6 (24.1) (21.2)
Recent conversions 12.3 21.4 18.9 (42.5) (34.9)
Comparison of PE ratio at
maximum to:
- ----------------------------------------------
Comparative group 13.7 25.2 22.4 (45.6) (38.8)
Tennessee thrifts 13.7 19.0 19.0 (27.9) (27.9)
Southeast Region thrifts 13.7 17.1 16.7 (19.9) (18.0)
All public thrifts 13.7 16.2 15.6 (15.4) (12.2)
Recent conversions 13.7 21.4 18.9 (36.0) (27.5)
Comparison of PE ratio at
supermaximum to:
- ----------------------------------------------
Comparative group 15.2 25.2 22.4 (39.7) (32.1)
Tennessee thrifts 15.2 19.0 19.0 (20.0) (20.0)
Southeast Region thrifts 15.2 17.1 16.7 (11.1) (9.0)
All public thrifts 15.2 16.2 15.6 (6.2) (2.6)
Recent conversions 15.2 21.4 18.9 (29.0) (19.6)
Comparison of PB ratio at
midpoint to:
- ----------------------------------------------
Comparative group 70.8 101.4 100.2 (30.2) (29.3)
Tennessee thrifts 70.8 120.1 120.1 (41.0) (41.0)
Southeast Region thrifts 70.8 145.3 140.0 (51.3) (49.4)
All public thrifts 70.8 142.8 135.1 (50.4) (47.6)
Recent conversions 70.8 71.7 72.0 (1.3) (1.7)
Comparison of PB ratio at
maximum to:
- ----------------------------------------------
Comparative group 76.7 101.4 100.2 (24.4) (23.5)
Tennessee thrifts 76.7 120.1 120.1 (36.1) (36.1)
Southeast Region thrifts 76.7 145.3 140.0 (47.2) (45.2)
All public thrifts 76.7 142.8 135.1 (46.3) (43.2)
Recent conversions 76.7 71.7 72.0 7.0 6.5
Comparison of PB ratio at
supermaximum to:
- ----------------------------------------------
Comparative group 82.7 101.4 100.2 (18.4) (17.5)
Tennessee thrifts 82.7 120.1 120.1 (31.1) (31.1)
Southeast Region thrifts 82.7 145.3 140.0 (43.1) (40.9)
All public thrifts 82.7 142.8 135.1 (42.1) (38.8)
Recent conversions 82.7 71.7 72.0 15.3 14.9
17
FERGUSON & COMPANY Table IV.6 Section IV.
- ------------------ -----------
Comparison of Pricing Ratios - Banking
Lexington Group Percent Premium
First Compared to (Discount) Versus
--------------------------- ---------------------------
Federal Average Median Average Median
------------- ------------- ------------- ------------- -------------
Comparison of PE ratio at
midpoint to:
- ------------------------------------
Other charter flips-Current 12.3 24.6 20.7 (50.0) (40.6)
Other charter flips-Conversion 12.3 15.3 14.3 (19.6) (14.0)
All pink sheet banks 12.3 12.7 12.5 (3.1) (1.6)
SE Region pink sheet banks 12.3 12.7 11.9 (3.1) 3.4
Tennessee pink sheet banks 12.3 11.1 11.1 10.8 10.8
Comparison of PE ratio at
maximum to:
- ------------------------------------
Other charter flips-Current 13.7 24.6 20.7 (44.3) (33.8)
Other charter flips-Conversion 13.7 15.3 14.3 (10.5) (4.2)
All pink sheet banks 13.7 12.7 12.5 7.9 9.6
SE Region pink sheet banks 13.7 12.7 11.9 7.9 15.1
Tennessee pink sheet banks 13.7 11.1 11.1 23.4 23.4
Comparison of PE ratio at
supermaximum to:
- ------------------------------------
Other charter flips-Current 15.2 24.6 20.7 (38.2) (26.6)
Other charter flips-Conversion 15.2 15.3 14.3 (0.7) 6.3
All pink sheet banks 15.2 12.7 12.5 19.7 21.6
SE Region pink sheet banks 15.2 12.7 11.9 19.7 27.7
Tennessee pink sheet banks 15.2 11.1 11.1 36.9 36.9
Comparison of PB ratio at
midpoint to:
- ------------------------------------
Other charter flips-Current 70.8 100.7 101.9 (29.7) (30.5)
Other charter flips-Conversion 70.8 73.4 73.1 (3.5) (3.1)
All pink sheet banks 70.8 159.2 153.9 (55.5) (54.0)
SE Region pink sheet banks 70.8 153.5 151.1 (53.9) (53.1)
Tennessee pink sheet banks 70.8 125.3 125.3 (43.5) (43.5)
Comparison of PB ratio at
maximum to:
- ------------------------------------
Other charter flips-Current 76.7 100.7 101.9 (23.8) (24.7)
Other charter flips-Conversion 76.7 73.4 73.1 4.5 4.9
All pink sheet banks 76.7 159.2 153.9 (51.8) (50.2)
SE Region pink sheet banks 76.7 153.5 151.1 (50.0) (49.2)
Tennessee pink sheet banks 76.7 125.3 125.3 (38.8) (38.8)
Comparison of PB ratio at
supermaximum to:
- ------------------------------------
Other charter flips-Current 82.7 100.7 101.9 (17.9) (18.8)
Other charter flips-Conversion 82.7 73.4 73.1 12.7 13.1
All pink sheet banks 82.7 159.2 153.9 (48.1) (46.3)
SE Region pink sheet banks 82.7 153.5 151.1 (46.1) (45.3)
Tennessee pink sheet banks 82.7 125.3 125.3 (34.0) (34.0)
18
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.7 - Exchange Ratios
Minimum Midpoint Maximum Supermaximum
------------ ------------ ------------ --------------
Full value $3,655,000 $4,300,000 $4,945,000 $5,686,750
Per share price $ 10.00 $ 10.00 $ 10.00 $ 10.00
Total shares 365,500 430,000 494,500 568,675
Shares currently owned by
Public shareholders 87,993 87,993 87,993 87,993
Total shares outstanding 222,993 222,993 222,993 222,993
Percent owned by public 39.46% 39.46% 39.46% 39.46%
Percent to be sold in this
offering 60.54% 60.54% 60.54% 60.54%
Number of shares being sold 221,274 260,322 299,370 344,276
Number of shares being
exchanged for existing shares 144,226 169,678 195,130 224,399
Exchange ratio 1.6391 1.9283 2.2176 2.5502
19
FERGUSON & COMPANY Figure IV.1 - SNL Index Section IV.
- ------------------ -----------
% CHANGE SINCE
-------------------------------
SNL PREVIOUS
DATE INDEX DATE 12/31/95 12/31/96
---- ----- ---- -------- --------
12/31/90 96.6
12/31/91 143.9 49.0%
12/31/92 201.1 39.7%
12/31/93 252.5 25.6%
12/31/94 244.7 -3.1%
12/31/95 376.5 53.9%
3/31/96 382.1 1.5% 1.5%
6/30/96 377.2 -1.3% 0.2%
9/30/96 429.3 13.8% 14.0%
12/31/96 483.6 12.6% 28.4%
3/31/97 527.7 9.1% 40.2% 9.1%
4/30/97 537.2 1.8% 42.7% 11.1%
5/30/97 577.9 7.6% 53.5% 19.5%
6/20/97 625.9 8.3% 66.2% 29.4%
[LINE GRAPH APPEARS HERE]
20
FERGUSON & COMPANY Figure IV.2-Interest Rates Section IV.
- ------------------ -----------
---------------------------------------------------------------------------------------------
1 Year 5 Year 10 Year 30 Year
Fed Fds (*) T-bill Treas. Treas. Treas.
---------------------------------------------------------------------------------------------
11/18/96 5.21 5.39 5.96 6.19 6.46
11/29/96 5.30 5.41 5.90 6.12 6.41
12/13/96 5.22 5.45 6.03 6.27 6.53
12/20/96 5.38 5.51 6.15 6.40 6.63
12/31/96 5.18 5.48 6.12 6.34 6.58
1/17/97 5.19 5.60 6.33 6.56 6.81
1/31/97 5.18 5.60 6.36 6.62 6.89
2/14/97 5.05 5.48 6.14 6.37 6.65
2/27/97 5.16 5.52 6.25 6.45 6.71
3/14/97 5.19 5.69 6.41 6.58 6.85
3/31/97 5.40 5.91 6.75 6.96 7.15
4/4/97 5.86 5.99 6.75 6.90 7.10
4/18/97 5.48 6.00 6.80 6.92 7.13
4/30/97 5.45 5.89 6.57 6.71 6.95
5/16/97 5.49 5.85 6.54 6.68 6.90
5/30/97 5.43 5.85 6.60 6.75 6.99
6/6/97 5.54 5.76 6.50 6.64 6.89
6/20/97 5.62 5.64 6.29 6.41 6.70
---------------------------------------------------------------------------------------------
(*) Seven-day average for week ending two days earlier than date shown.
Rates From November 18, 1996 Through June 20, 1997
[LINE GRAPH APPEARS HERE]
----------------------------------------------------------------------------------------------
1 Year 5 Year 10 Year 30 Year
Fed Fds (*) T-bill Treas. Treas. Treas.
----------------------------------------------------------------------------------------------
6/20/97 5.62 5.64 6.29 6.41 6.70
----------------------------------------------------------------------------------------------
Current Yield Curve
[LINE GRAPH APPEARS HERE]
21
EXHIBITS
EXHIBIT I
FERGUSON & COMPANY
- ------------------
Exhibit I - Firm Qualifications
Ferguson & Company (F&C), is a financial, economic, and regulatory
consulting firm providing services to financial institutions. It is located in
Irving, Texas. Its services to financial institutions include:
. Mergers and acquisition services
. Business plans
. Fairness opinions and conversion appraisals
. Litigation support
. Operational and efficiency consulting
. Human resources evaluation and management
F&C developed several financial institution databases of information
derived from periodic financial reports filed with regulatory authorities by
financial institutions. For example, F&C developed TAFS and BankSource. TAFS
includes thrifts filing TFR's with the OTS and BankSource includes banks and
savings banks filing call reports with the FDIC. Both databases include
information from the periodic reports plus numerous calculations derived from
F&C's analysis. In addition, both databases are interactive, permitting the user
to conduct merger analysis, do peer group comparisons, and a number of other
items. In 1994, F&C sold its electronic publishing segment to Sheshunoff
Information Services Inc., Austin, Texas.
Brief biographical information is presented below on F&C's principals:
WILLIAM C. FERGUSON, MANAGING PARTNER
- -------------------------------------
Mr. Ferguson has approximately 30 years of experience providing various
services to financial institutions. He was a partner in a CPA firm prior to
founding F&C in 1984. Mr. Ferguson is a frequent speaker for financial
institution seminars and he has testified before Congressional Committees
several times on his analysis of the state of the thrift industry. Mr. Ferguson
has a B.A. degree from Austin Peay University and an M.S. degree from the
University of Tennessee. He is a CPA.
1
FERGUSON & COMPANY
- ------------------
Exhibit I- Firm Qualifications
CHARLES M. HEBERT, PRINCIPAL
- ----------------------------
Mr. Hebert has over 30 years of experience providing services to and managing
financial institutions. He spent 7 years as a national bank examiner, 14 years
in bank management, 5 years in thrift management, and has spent the last 8 years
on the F&C consulting staff. Mr. Hebert holds a B.S. degree from Louisiana State
University.
ROBIN L. FUSSELL, PRINCIPAL
- ---------------------------
Mr. Fussell has over 25 years of experience providing professional services to
and managing financial institutions. He worked on the audit staff of a "Big Six"
accounting firm for 12 years, served as CFO of a thrift for 3 years, and has
worked in financial institution consulting for the last 13 years. He is a co-
founder of F&C. He holds a B.S. degree from East Carolina University. He is a
CPA.
2
EXHIBIT II
FERGUSON & COMPANY Exhibit II.1 - Selected Publicly Held Southeast Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
FFDB FirstFed Bancorp Incorporated Bessemer AL SE SAIF NASDAQ 11/19/91 16.750
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 18.000
PFSL Pocahontas FS&LA, MHC Pocahontas AR SE SAIF NASDAQ 04/05/94 20.750
BANC BankAtlantic Bancorp Inc. Fort Lauderdale FL SE SAIF NASDAQ 11/29/83 14.125
BKUNA BankUnited Financial Corp. Coral Gables FL SE SAIF NASDAQ 12/11/85 9.625
CMSV Community Savings, MHC North Palm Beach FL SE SAIF NASDAQ 10/24/94 21.750
FFFL Fidelity Bankshares Inc., MHC West Palm Beach FL SE SAIF NASDAQ 01/07/94 19.375
FFLC FFLC Bancorp Inc. Leesburg FL SE SAIF NASDAQ 01/04/94 28.500
HARB Harbor Federal Savings Bk, MHC Fort Pierce FL SE SAIF NASDAQ 01/06/94 40.750
EBSI Eagle Bancshares Tucker GA SE SAIF NASDAQ 04/01/86 17.875
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 7.250
FLFC First Liberty Financial Corp. Macon GA SE SAIF NASDAQ 12/06/83 21.750
FSTC First Citizens Corporation Newnan GA SE SAIF NASDAQ 03/01/86 24.750
CFTP Community Federal Bancorp Tupelo MS SE SAIF NASDAQ 03/26/96 17.625
FFBS FFBS BanCorp Inc. Columbus MS SE SAIF NASDAQ 07/01/93 23.000
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 16.938
HFNC HFNC Financial Corp. Charlotte NC SE SAIF NASDAQ 12/29/95 16.750
KSAV KS Bancorp Inc. Kenly NC SE SAIF NASDAQ 12/30/93 25.500
SOPN First Savings Bancorp Inc. Southern Pines NC SE SAIF NASDAQ 01/06/94 24.000
FFCH First Financial Holdings Inc. Charleston SC SE SAIF NASDAQ 11/10/83 29.500
FSFC First Southeast Financial Corp Anderson SC SE SAIF NASDAQ 10/08/93 10.125
PALM Palfed, Inc. Aiken SC SE SAIF NASDAQ 12/15/85 16.688
PERT Perpetual Bank, MHC Anderson SC SE SAIF NASDAQ 10/26/93 29.500
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 19.000
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 20.750
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 22.500
CNIT CENIT Bancorp Inc. Norfolk VA SE SAIF NASDAQ 08/06/92 44.500
FFFC FFVA Financial Corp. Lynchburg VA SE SAIF NASDAQ 10/12/94 26.750
LIFB Life Bancorp Inc. Norfolk VA SE SAIF NASDAQ 10/11/94 23.625
FOBC Fed One Bancorp Wheeling WV SE SAIF NASDAQ 01/19/95 21.000
Maximum 44.500
Minimum 7.250
Average 21.633
Median 20.875
1
FERGUSON & COMPANY Exhibit 11.1 - Selected Publicly Held Southeast Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core Core
Market LTM Price/ Price/T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM
FFDB 20.53 13.2 116.9 128.0 11.6 2.99 176,496 10.0 9.2 1.27 0.93 9.10
FTF 32.84 11.1 122.5 122.5 19.6 2.50 168,094 16.0 16.0 1.62 1.71 9.71
PFSL 33.80 13.9 142.0 142.0 9.1 4.34 373,262 6.4 6.4 1.49 0.67 11.02
BANC 335.10 18.1 171.6 210.8 9.5 0.82 2,773,085 5.5 4.5 0.78 0.71 11.07
BKUNA 82.44 18.2 131.3 163.4 5.9 - 1,453,152 6.8 6.0 0.53 0.62 7.72
CMSV 107.02 17.4 139.7 139.7 15.7 4.14 682,314 11.2 11.2 1.25 0.96 8.19
FFFL 131.08 24.5 160.4 161.7 14.1 4.13 926,891 8.8 8.8 0.79 0.61 6.43
FFLC 66.64 20.8 128.6 128.6 18.6 1.68 358,538 14.5 14.5 1.37 1.01 6.25
HARB 202.19 16.0 222.7 231.4 18.3 3.44 1,104,924 8.2 7.9 2.54 1.21 14.59
EBSI 81.37 15.5 140.3 140.3 12.2 3.36 666,166 8.7 8.7 1.15 0.80 8.97
FGHC 22.13 20.1 177.7 194.9 15.0 0.74 147,094 8.5 7.8 0.36 0.77 9.28
FLFC 168.01 15.1 183.2 204.8 13.5 1.84 1,248,033 7.3 6.6 1.44 0.91 12.24
FSTC 40.03 9.8 163.0 207.3 15.3 1.78 257,288 9.4 7.5 2.52 2.03 19.20
CFTP 75.48 22.3 109.3 109.3 36.6 1.70 206,049 33.5 33.5 0.79 1.70 5.11
FFBS 35.82 18.7 135.2 135.2 27.8 2.17 128,676 19.4 19.4 1.23 1.49 7.62
HBS 21.20 14.0 102.5 106.5 14.5 3.31 146,331 14.1 13.7 1.21 1.12 7.43
HFNC 287.97 23.3 181.5 181.5 34.2 1.67 842,917 18.8 18.8 0.72 1.38 4.71
KSAV 16.91 14.3 121.4 121.5 16.8 2.35 100,754 13.8 13.8 1.79 1.21 8.44
SOPN 88.73 21.2 133.0 133.0 32.7 3.33 271,121 24.6 24.6 1.13 1.68 6.59
FFCH 186.72 14.7 189.5 189.5 11.7 2.44 1,602,018 6.2 6.2 2.01 0.83 13.37
FSFC 44.43 14.3 129.8 129.8 13.3 2.37 334,751 10.2 10.2 0.71 0.90 7.30
PALM 88.08 23.8 165.7 165.7 13.4 0.72 655,707 8.1 8.1 0.70 0.56 6.94
PERT 44.39 18.9 148.9 148.9 18.1 4.75 245,671 12.1 12.1 1.56 1.15 9.73
TWIN 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79 6.08
BFSB 23.71 13.3 119.1 119.1 18.0 2.70 131,506 14.3 14.3 1.56 1.33 9.05
CFFC 28.63 13.3 124.7 124.7 17.2 2.49 166,664 13.8 13.8 1.69 1.31 9.44
CNIT 73.03 15.8 145.5 159.1 10.3 2.25 706,797 7.1 6.5 2.82 0.70 9.75
FFFC 120.92 19.0 157.5 161.1 22.0 1.79 549,771 13.0 12.7 1.41 1.33 9.00
LIFB 232.63 18.6 153.2 158.0 16.5 2.03 1,407,861 10.8 10.5 1.27 0.86 7.73
FOBC 49.71 15.4 123.0 129.2 14.8 2.76 346,214 11.6 11.1 1.36 0.98 8.25
Maximum 335.10 24.5 222.7 231.4 36.6 4.75 2,773,085 33.5 33.5 2.82 2.03 19.20
Minimum 16.22 9.8 102.5 106.5 5.9 - 100,754 5.5 4.5 0.36 0.56 4.71
Average 91.93 17.1 145.3 152.2 17.1 2.46 609,421 12.2 11.9 1.34 1.08 9.01
Median 69.84 16.7 140.0 141.2 15.4 2.41 352,376 11.0 10.8 1.27 0.97 8.71
2
FERGUSON & COMPANY Exhibit II.1 - Selected Publicly Held Southeast Thrifts
- ------------------
NPAs/ Price/ Core Core Core
Merger Current Assets Core EPS ROAA ROAE
Target? Pricing (%) EPS ($) (%) (%)
Ticker (Y/N) Date MRQ (x) MRQ MRQ MRQ
FFDB N 06/20/97 0.77 10.74 0.39 1.11 11.36
FTF N 06/20/97 0.13 10.71 0.42 1.70 10.61
PFSL N 06/20/97 0.22 13.30 0.39 0.69 10.90
BANC N 06/20/97 0.75 18.59 0.19 0.66 11.55
BKUNA N 06/20/97 0.70 20.05 0.12 0.55 7.42
CMSV N 06/20/97 0.57 20.14 0.27 0.81 7.05
FFFL N 06/20/97 0.30 26.91 0.18 0.55 6.02
FFLC N 06/20/97 0.27 17.81 0.40 1.10 7.35
HARB N 06/20/97 0.47 15.21 0.67 1.23 14.96
EBSI N 06/20/97 0.88 15.96 0.28 0.77 8.71
FGHC N 06/20/97 1.35 45.31 0.04 0.35 4.16
FLFC N 06/20/97 0.75 15.54 0.35 0.91 11.92
FSTC N 06/20/97 1.26 11.05 0.56 1.51 16.44
CFTP N 06/20/97 0.35 22.03 0.20 1.70 5.05
FFBS N 06/20/97 0.03 16.91 0.34 1.62 8.37
HBS N 06/20/97 2.09 16.94 0.25 0.89 6.02
HFNC N 06/20/97 0.99 24.63 0.17 1.15 4.36
KSAV N 06/20/97 0.42 14.17 0.45 1.24 9.06
SOPN N 06/20/97 0.12 20.69 0.29 1.73 6.96
FFCH N 06/20/97 1.77 13.41 0.55 0.88 14.32
FSFC N 06/20/97 0.11 12.05 0.21 1.08 10.56
PALM N 06/20/97 2.52 18.14 0.23 0.75 9.43
PERT N 06/20/97 NA 15.69 0.47 1.20 9.46
TWIN N 06/20/97 0.08 19.79 0.24 0.76 5.93
BFSB N 06/20/97 0.00 13.65 0.38 1.26 8.79
CFFC N 06/20/97 0.35 12.23 0.46 1.41 10.21
CNIT N 06/20/97 0.61 16.60 0.67 0.65 9.17
FFFC N 06/20/97 0.10 17.15 0.39 1.38 10.17
LIFB N 06/20/97 0.49 20.37 0.29 0.79 7.30
FOBC N 06/20/97 0.13 15.91 0.33 0.96 8.23
Maximum 2.52 45.31 0.67 1.73 16.44
Minimum - 10.71 0.04 0.35 4.16
Average 0.64 17.72 0.34 1.05 9.06
Median 0.47 16.76 0.34 1.02 8.93
3
FERGUSON & COMPANY Exhibit II.2 - Selected Publicly Held Tennessee Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 19.000
Maximum 19.000
Minimum 19.000
Average 19.000
Median 19.000
4
FERGUSON & COMPANY Exhibit II.2 - Selected Publicly Held Tennessee Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core Core
Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM
TWIN 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79 6.08
Maximum 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79 6.08
Minimum 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79 6.08
Average 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79 6.08
Median 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79 6.08
5
FERGUSON & COMPANY Exhibit II.2 - Selected Publicly Held Tennessee Thrifts
- ------------------
NPAs/ Price/ Core Core Core
Merger Current Assets Core EPS ROAA ROAE
Target? Pricing (%) EPS ($) (%) (%)
Ticker (Y/N) Date MRQ (x) MRQ MRQ MRQ
TWIN N 06/20/97 0.08 19.79 0.24 0.76 5.93
Maximum 0.08 19.79 0.24 0.76 5.93
Minimum 0.08 19.79 0.24 0.76 5.93
Average 0.08 19.79 0.24 0.76 5.93
Median 0.08 19.79 0.24 0.76 5.93
6
FERGUSON & COMPANY Exhibit II.3 - Comparatives General
- ------------------
Total Current Current
Number Assets Stock Market
of ($000) Price Value
Ticker Short Name City State Offices MRQ IPO Date ($) ($M)
CKFB CKF Bancorp Inc. Danville KY 1 60,197 01/04/95 19.250 17.85
CRZY Crazy Woman Creek Bancorp Buffalo WY 1 52,042 03/29/96 13.500 13.57
CSBF CSB Financial Group Inc. Centralia IL 2 47,996 10/09/95 12.500 11.77
HBBI Home Building Bancorp Washington IN 2 46,804 02/08/95 21.000 6.54
HZFS Horizon Financial Svcs Corp. Oskaloosa IA 3 78,368 06/30/94 19.250 8.19
JOAC Joachim Bancorp Inc. De Soto MO 1 35,656 12/28/95 14.500 11.03
LONF London Financial Corporation London OH 1 37,937 04/01/96 14.875 7.66
MCBN Mid-Coast Bancorp Inc. Waldoboro ME 2 57,838 11/02/89 19.500 4.49
MIVI Mississippi View Holding Co. Little Falls MN 1 69,755 03/24/95 14.625 11.97
NSLB NS&L Bancorp Inc. Neosho MO 2 58,089 06/08/95 16.500 11.67
RELI Reliance Bancshares Inc. Milwaukee WI 1 46,836 04/19/96 8.250 20.86
SSB Scotland Bancorp Inc Laurinburg NC 2 68,924 04/01/96 16.250 29.90
Maximum 3 78,368 21.000 29.90
Minimum 1 35,656 8.250 4.49
Average 2 55,037 15.833 12.96
Median 2 54,940 15.563 11.72
7
FERGUSON & COMPANY Exhibit II.4 - Comparatives Balance Sheets
- ------------------
Total Mortgage- Investment & Loan
Total Cash and Backed Net Foreclosed Servicing Total Other Total
Assets Investments Securities Loans Real Estate Rights Intangibles Assets Deposits
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 60,197 5,004 456 54,035 186 - - 972 42,853
Crazy Woman Creek Bancorp 52,042 23,478 6,347 27,582 - - - 982 28,131
CSB Financial Group Inc. 47,996 18,766 - 27,404 - - 691 1,135 35,733
Home Building Bancorp 46,804 17,480 5,200 28,195 - - - 1,129 37,110
Horizon Financial Svcs Corp. 78,368 24,161 - 51,923 549 - - 1,735 56,434
Joachim Bancorp Inc. 35,656 11,066 85 23,772 126 - - 692 24,825
London Financial Corporation 37,937 8,416 3,761 28,958 - - - 563 29,309
Mid-Coast Bancorp Inc. 57,838 7,637 173 47,865 92 - - 2,059 42,440
Mississippi View Holding Co. 69,755 23,944 4,942 43,978 34 - - 1,750 55,943
NS&L Bancorp Inc. 58,089 24,353 5,025 31,919 - - - 1,754 42,637
Reliance Bancshares Inc. 46,836 19,130 713 NA - NA NA 507 18,045
Scotland Bancorp Inc 68,924 20,252 450 47,322 - - - 1,350 42,497
Maximum 78,368 24,353 6,347 54,035 549 - 691 2,059 56,434
Minimum 35,656 5,004 - 23,772 - - - 507 18,045
Average 55,037 16,974 2,263 37,541 82 - 63 1,219 37,996
Median 54,940 18,948 585 31,919 - - - 1,132 39,775
Total
Borrowings
($000)
Short Name MRQ
CKF Bancorp Inc. 2,243
Crazy Woman Creek Bancorp 9,007
CSB Financial Group Inc. -
Home Building Bancorp 3,700
Horizon Financial Svcs Corp. 13,117
Joachim Bancorp Inc. -
London Financial Corporation 800
Mid-Coast Bancorp Inc. 10,190
Mississippi View Holding Co. -
NS&L Bancorp Inc. 3,000
Reliance Bancshares Inc. 6,000
Scotland Bancorp Inc -
Maximum 13,117
Minimum -
Average 4,005
Median 2,622
8
FERGUSON & COMPANY Exhibit II.4 - Comparative Balance Sheets
- ------------------
Regulatory Regulatory Regulatory
Subordinated Other Total Preferred Common Total Tangible Core Total
Debt Liabilities Liabilities Equity Equity Equity Capital Capital Capital
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. - 847 45,943 - 14,254 14,254 12,224 12,224 12,353
Crazy Woman Creek Bancorp - 414 37,552 - 14,490 14,490 10,413 10,413 10,688
CSB Financial Group Inc. - 230 35,963 - 12,033 12,033 NA NA NA
Home Building Bancorp - 345 41,155 - 5,649 5,649 4,446 4,446 4,525
Horizon Financial Svcs Corp. - 592 70,143 - 8,225 8,225 6,100 6,100 6,401
Joachim Bancorp Inc. - 497 25,322 - 10,334 10,334 7,564 7,564 7,638
London Financial Corporation - 291 30,400 - 7,537 7,537 5,633 5,633 5,820
Mid-Coast Bancorp Inc. - 233 52,863 - 4,975 4,975 4,937 4,937 5,233
Mississippi View Holding Co. - 1,077 57,020 - 12,735 12,735 10,848 10,848 11,280
NS&L Bancorp Inc. - 878 46,515 - 11,574 11,574 8,475 8,475 8,518
Reliance Bancshares Inc. - 317 24,362 - 22,474 22,474 NA NA NA
Scotland Bancorp Inc - 1,142 43,639 - 25,285 25,285 NA 16,476 16,983
Maximum - 1,142 70,143 - 25,285 25,285 12,224 16,476 16,983
Minimum - 230 24,362 - 4,975 4,975 4,446 4,446 4,525
Average - 572 42,573 - 12,464 12,464 7,849 8,712 8,944
Median - 456 42,397 - 11,804 11,804 7,564 8,020 8,078
9
FERGUSON & COMPANY Exhibit II.4 - Comparatives Balance Sheets
- ------------------
Tangible Core Risk-Based NPAs/ Reserves/
Capital/ Capital/ Capital/ Assets Assets
Tangible Adj Tangible Risk-Weightd (%) (%)
Short Name Assets (%) Assets (%) Assets (%) MRQ MRQ
CKF Bancorp Inc. 20.91 20.91 36.79 0.89 0.18
Crazy Woman Creek Bancorp 20.45 20.45 52.24 0.23 0.55
CSB Financial Group Inc. NA NA NA NA 0.31
Home Building Bancorp 10.07 10.07 20.95 0.52 0.17
Horizon Financial Svcs Corp. 7.78 7.78 14.59 1.02 0.37
Joachim Bancorp Inc. 22.06 22.06 44.81 0.68 0.21
London Financial Corporation 15.64 15.64 30.22 0.79 0.49
Mid-Coast Bancorp Inc. 8.60 8.60 15.45 0.40 0.51
Mississippi View Holding Co. 14.92 14.92 31.72 0.21 1.24
NS&L Bancorp Inc. 13.83 13.83 38.51 - 0.07
Reliance Bancshares Inc. NA NA NA - 0.30
Scotland Bancorp Inc NA NA NA - 0.34
Maximum 22.06 22.06 52.24 1.02 1.24
Minimum 7.78 7.78 14.59 - 0.07
Average 14.92 14.92 31.70 0.43 0.40
Median 14.92 14.92 31.72 0.40 0.33
Loan Loss Publicly Tangible
Reserves/ Reported Publicly Rep
NPLs Book Value Book Value
(%) ($) ($)
Short Name MRQ MRQ MRQ
CKF Bancorp Inc. 30.66 16.59 16.59
Crazy Woman Creek Bancorp 240.34 14.42 14.42
CSB Financial Group Inc. NA 12.78 12.05
Home Building Bancorp 32.51 19.88 19.88
Horizon Financial Svcs Corp. 66.14 19.33 19.33
Joachim Bancorp Inc. 63.25 13.59 13.59
London Financial Corporation 62.54 14.63 14.63
Mid-Coast Bancorp Inc. 212.95 21.61 21.61
Mississippi View Holding Co. 772.32 15.55 15.55
NS&L Bancorp Inc. NM 16.36 16.36
Reliance Bancshares Inc. NM 8.89 NA
Scotland Bancorp Inc NM 13.74 13.74
Maximum 772.32 21.61 21.61
Minimum 30.66 8.89 12.05
Average 185.09 15.61 16.16
Median 64.70 15.09 15.55
10
FERGUSON & COMPANY Exhibit II.4 - Comparatives Balance Sheets
- ------------------
Earn Assets/ Full-Time Loans Cash &
Int Bearing Equivalent Serviced Investments MBS/
Liabilities Employees For Others (ex MBS)/ Assets
(%) (Actual) ($000) Assets (%) (%)
Short Name MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 132.43 8 - 7.56 0.76
Crazy Woman Creek Bancorp 140.36 10 79 32.92 12.20
CSB Financial Group Inc. 129.77 NA NA 39.10 -
Home Building Bancorp 108.55 14 - 26.24 11.11
Horizon Financial Svcs Corp. 110.56 27 1,636 30.83 -
Joachim Bancorp Inc. 141.81 14 - 30.80 0.24
London Financial Corporation 125.88 NA - 12.27 9.91
Mid-Coast Bancorp Inc. 105.20 22 6,941 12.91 0.30
Mississippi View Holding Co. 123.03 21 - 27.24 7.08
NS&L Bancorp Inc. 125.18 17 - 33.27 8.65
Reliance Bancshares Inc. 197.41 NA NA 39.32 1.52
Scotland Bancorp Inc 159.86 14 - 28.73 0.65
Maximum 197.41 27 6,941 39.32 12.20
Minimum 105.20 8 - 7.56 -
Average 133.34 16 866 26.76 4.37
Median 127.83 14 - 29.76 1.14
11
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Net Income ROAA
Average Before Before Core
Assets Net Income Extra Items ROAA Extra ROAA
($000) ($000) ($000) (%) (%) (%)
Short Name LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 59,529 775 775 1.30 1.30 1.29
Crazy Woman Creek Bancorp 51,347 514 514 1.00 1.00 1.25
CSB Financial Group Inc. 45,918 202 202 0.44 0.44 0.65
Home Building Bancorp 43,518 85 85 0.20 0.20 0.50
Horizon Financial Svcs Corp. 74,864 319 319 0.43 0.43 0.60
Joachim Bancorp Inc. 36,218 183 183 0.51 0.51 0.78
London Financial Corporation 37,266 277 277 0.74 0.74 1.08
Mid-Coast Bancorp Inc. 54,978 222 222 0.40 0.40 0.64
Mississippi View Holding Co. 69,608 474 474 0.68 0.68 1.01
NS&L Bancorp Inc. 58,533 292 292 0.50 0.50 0.74
Reliance Bancshares Inc. 46,910 827 827 1.76 1.76 1.88
Scotland Bancorp Inc 69,132 1,019 1,019 1.47 1.47 1.77
Maximum 74,864 1,019 1,019 1.76 1.76 1.88
Minimum 36,218 85 85 0.20 0.20 0.50
Average 53,985 432 432 0.79 0.79 1.02
Median 53,163 306 306 0.60 0.60 0.90
ROAE
Before Core
ROAE Extra ROAE
(%) (%) (%)
Short Name LTM LTM LTM
CKF Bancorp Inc. 5.08 5.08 5.05
Crazy Woman Creek Bancorp 3.36 3.36 4.20
CSB Financial Group Inc. 1.62 1.62 2.39
Home Building Bancorp 1.48 1.48 3.77
Horizon Financial Svcs Corp. 3.87 3.87 5.41
Joachim Bancorp Inc. 1.74 1.74 2.68
London Financial Corporation 3.51 3.51 5.10
Mid-Coast Bancorp Inc. 4.42 4.42 7.05
Mississippi View Holding Co. 3.74 3.74 5.54
NS&L Bancorp Inc. 2.31 2.31 3.45
Reliance Bancshares Inc. 3.09 3.09 3.30
Scotland Bancorp Inc 4.07 4.07 4.89
Maximum 5.08 5.08 7.05
Minimum 1.48 1.48 2.39
Average 3.19 3.19 4.40
Median 3.44 3.44 4.55
12
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Loan Total Total Net Loan Common Dividend
Loss Noninterest Noninterest Chargeoffs/ LTM EPS Dividends Payout
Provision Income Expense Avg Loans After Extra Per Share Ratio
($000) ($000) ($000) (%) ($) ($) (%)
Short Name LTM LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 1 57 1,071 - 0.87 1.44 165.52
Crazy Woman Creek Bancorp - 72 1,053 (0.02) 0.52 0.35 67.31
CSB Financial Group Inc. 74 81 1,140 0.18 0.22 - -
Home Building Bancorp 52 109 1,047 1.43 0.31 0.30 96.77
Horizon Financial Svcs Corp. 131 330 1,948 0.33 0.77 0.32 41.56
Joachim Bancorp Inc. 12 54 1,052 0.04 0.25 0.50 200.00
London Financial Corporation - 65 863 - NA NA NA
Mid-Coast Bancorp Inc. 93 184 1,634 0.04 0.93 0.51 54.84
Mississippi View Holding Co. 1 187 1,687 0.04 0.58 0.24 41.38
NS&L Bancorp Inc. (1) 203 1,357 - 0.44 0.50 113.64
Reliance Bancshares Inc. 23 8 750 NA NA NA NA
Scotland Bancorp Inc 25 72 1,297 0.02 NA NA NA
Maximum 131 330 1,948 1.43 0.93 1.44 200.00
Minimum (1) 8 750 (0.02) 0.22 - -
Average 34 119 1,242 0.19 0.54 0.46 86.78
Median 18 77 1,106 0.04 0.52 0.35 67.31
13
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Interest Interest Net Interest Gain on Real Noninterest G&A
Income/ Expense/ Income/ Sale/ Estate Income/ Expense/
Avg Assets Avg Assets Avg Assets Avg Assets Expense Avg Assets Avg Assets
(%) (%) (%) (%) ($000) (%) (%)
Short Name LTM LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. 7.39 3.69 3.69 0.47 42 0.10 1.73
Crazy Woman Creek Bancorp 7.27 3.47 3.79 (0.02) - 0.14 2.05
CSB Financial Group Inc. 6.71 3.21 3.50 0.08 - 0.18 2.40
Home Building Bancorp 7.50 4.18 3.32 0.01 (1) 0.25 2.41
Horizon Financial Svcs Corp. 7.63 4.36 3.27 0.18 70 0.44 2.51
Joachim Bancorp Inc. 7.00 2.96 4.05 0.04 - 0.15 2.90
London Financial Corporation 7.56 3.83 3.72 - - 0.17 2.32
Mid-Coast Bancorp Inc. 8.23 4.40 3.82 0.07 22 0.33 2.93
Mississippi View Holding Co. 7.39 3.63 3.76 0.02 (15) 0.27 2.45
NS&L Bancorp Inc. 6.43 3.35 3.08 0.10 - 0.35 2.32
Reliance Bancshares Inc. 7.30 2.22 5.08 - - 0.02 NA
Scotland Bancorp Inc 7.42 2.86 4.56 - - 0.10 1.88
Maximum 8.23 4.40 5.08 0.47 70 0.44 2.93
Minimum 6.43 2.22 3.08 (0.02) (15) 0.02 1.73
Average 7.32 3.51 3.80 0.08 10 0.21 2.35
Median 7.39 3.55 3.74 0.03 - 0.18 2.40
14
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Noninterest Net Oper Total Amortization
Expense/ Expenses/ Nonrecurring of
Avg Assets Avg Assets Expense Intangibles
(%) (%) ($000) ($000)
Short Name LTM LTM LTM LTM
CKF Bancorp Inc. 1.80 1.63 274 -
Crazy Woman Creek Bancorp 2.05 1.91 187 -
CSB Financial Group Inc. 2.48 2.23 188 36
Home Building Bancorp 2.41 2.16 224 -
Horizon Financial Svcs Corp. 2.60 2.07 331 -
Joachim Bancorp Inc. 2.90 2.76 167 -
London Financial Corporation 2.32 2.14 193 -
Mid-Coast Bancorp Inc. 2.97 2.60 241 -
Mississippi View Holding Co. 2.42 2.18 363 -
NS&L Bancorp Inc. 2.32 1.97 281 -
Reliance Bancshares Inc. 1.60 NM 87 -
Scotland Bancorp Inc 1.88 1.77 321 -
Maximum 2.97 2.76 363 36
Minimum 1.60 1.63 87 -
Average 2.31 2.13 238 3
Median 2.37 2.14 233 -
Extra and
Tax After Tax Efficiency
Provision Items Ratio
($000) ($000) (%)
Short Name LTM LTM LTM
CKF Bancorp Inc. 416 - 45.63
Crazy Woman Creek Bancorp 254 - 52.13
CSB Financial Group Inc. 125 - 65.33
Home Building Bancorp 169 - 67.44
Horizon Financial Svcs Corp. 186 - 67.58
Joachim Bancorp Inc. 119 - 69.21
London Financial Corporation 120 - 59.39
Mid-Coast Bancorp Inc. 134 - 70.52
Mississippi View Holding Co. 291 - 60.70
NS&L Bancorp Inc. 136 - 67.65
Reliance Bancshares Inc. 522 - NA
Scotland Bancorp Inc 566 - 40.20
Maximum 566 - 70.52
Minimum 119 - 40.20
Average 253 - 60.53
Median 178 - 65.33
15
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Yield on Cost of Interest Loan Loss
Preferred Int Earning Int Bearing Effective Yield Provision/
Dividends Assets Liabilities Tax Rate Spread Avg Assets
($000) (%) (%) (%) (%) (%)
Short Name LTM LTM LTM LTM LTM LTM
CKF Bancorp Inc. - 7.50 5.07 34.93 2.43 0.00
Crazy Woman Creek Bancorp - 7.40 5.04 33.07 2.36 -
CSB Financial Group Inc. - 6.91 4.44 38.23 2.47 0.16
Home Building Bancorp - 7.82 4.74 66.54 3.08 0.12
Horizon Financial Svcs Corp. - 8.02 4.96 36.83 3.06 0.17
Joachim Bancorp Inc. - 7.14 4.24 39.40 2.90 0.03
London Financial Corporation - 7.64 4.90 30.23 2.74 -
Mid-Coast Bancorp Inc. - 8.70 4.96 37.64 3.74 0.17
Mississippi View Holding Co. - 7.48 4.50 38.04 2.98 0.00
NS&L Bancorp Inc. - 6.59 4.37 31.78 2.22 (0.00)
Reliance Bancshares Inc. NA 7.36 5.25 38.70 2.11 0.05
Scotland Bancorp Inc - 7.63 4.59 35.71 3.04 0.04
Maximum - 8.70 5.25 66.54 3.74 0.17
Minimum - 6.59 4.24 30.23 2.11 (0.00)
Average - 7.52 4.76 38.43 2.76 0.06
Median - 7.49 4.82 37.24 2.82 0.03
16
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparatives Pricing Characteristics
Current Current Price/ Current
Stock Market LTM Price/
Abbreviated Price Value Core EPS Book V
Ticker Name City State ($) ($M) (x) (%)
CKFB CKFBancorp-KY Danville KY 19.250 17.85 22.4 116.0
CRZY CrazyWomanCreek-WY Buffalo WY 13.500 13.57 20.8 93.6
CSBF CSBFinancialGrp-IL Centralia IL 12.500 11.77 39.1 97.8
HBBI HomeBldngBncrp-IN Washington IN 21.000 6.54 28.0 105.6
HZFS HorizonFinSvcs-IA Oskaloosa IA 19.250 8.19 18.2 99.6
JOAC JoachimBancorp-MO De Soto MO 14.500 11.03 37.2 106.7
LONF LondonFinCorp-OH London OH 14.875 7.66 NA 101.7
MCBN Mid-Coast Bncp-ME Waldoboro ME 19.500 4.49 13.0 90.2
MIVI MissViewHoldCo-MN Little Falls MN 14.625 11.97 17.2 94.1
NSLB NS&LBancorp-MO Neosho MO 16.500 11.67 28.5 100.9
RELI RelianceBncshrs-WI Milwaukee WI 8.250 20.86 NA 92.8
SSB ScotlandBancorp-NC Laurinburg NC 16.250 29.90 NA 118.3
Maximum 21.000 29.90 39.1 118.3
Minimum 8.250 4.49 13.0 90.2
Average 15.833 12.96 24.9 101.4
Median 15.563 11.72 22.4 100.2
17
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparatives Pricing Characteristics
Tangible
Current Current Total Equity/ Equity/ Core Core
Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA
Book V Assets Yield ($000) (%) (%) ($) (%)
Ticker (%) (%) (%) MRQ MRQ MRQ LTM LTM
CKFB 116.0 29.7 2.29 60,197 23.7 23.7 0.86 1.29
CRZY 93.6 26.1 2.96 52,042 27.8 27.8 0.65 1.25
CSBF 103.7 24.5 - 47,996 25.1 24.0 0.32 0.65
HBBI 105.6 14.0 1.43 46,804 12.1 12.1 0.75 0.50
HZFS 99.6 10.5 1.66 78,368 10.5 10.5 1.06 0.60
JOAC 106.7 30.9 3.45 35,656 29.0 29.0 0.39 0.78
LONF 101.7 20.2 1.61 37,937 19.9 19.9 NA 1.08
MCBN 90.2 7.8 2.67 57,838 8.6 8.6 1.50 0.64
MIVI 94.1 17.2 1.09 69,755 18.3 18.3 0.85 1.01
NSLB 100.9 20.1 3.03 58,089 19.9 19.9 0.58 0.74
RELI NA 44.6 - 46,836 48.0 NA NA 1.88
SSB 118.3 43.4 1.85 68,924 36.7 36.7 NA 1.77
Maximum 118.3 44.6 3.45 78,368 48.0 36.7 1.50 1.88
Minimum 90.2 7.8 - 35,656 8.6 8.6 0.32 0.50
Average 102.8 24.1 1.84 55,037 23.3 20.9 0.77 1.02
Median 101.7 22.4 1.75 54,940 21.8 19.9 0.75 0.90
ROACE
Core Before
ROAE Extra Merger
(%) (%) Target?
Ticker LTM LTM (Y/N)
CKFB 5.05 5.08 N
CRZY 4.20 3.36 N
CSBF 2.39 1.62 N
HBBI 3.77 1.48 N
HZFS 5.41 3.87 N
JOAC 2.68 1.74 N
LONF 5.10 3.51 N
MCBN 7.05 4.42 N
MIVI 5.54 3.74 N
NSLB 3.45 2.31 N
RELI 3.30 NA N
SSB 4.89 4.07 N
Maximum 7.05 5.08
Minimum 2.39 1.48
Average 4.40 3.20
Median 4.55 3.51
18
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparatives Pricing Characteristics
NPAs/ Price/ Core Core Core
Current Assets Core EPS ROAA ROAE
Pricing (%) EPS ($) (%) (%)
Ticker Date MRQ (x) MRQ MRQ MRQ
CKFB 06/20/97 0.89 22.9 0.21 1.21 4.96
CRZY 06/20/97 0.23 19.9 0.17 1.29 4.60
CSBF 06/20/97 NA 52.1 0.06 0.48 1.90
HBBI 06/20/97 0.52 15.9 0.33 0.81 6.63
HZFS 06/20/97 1.02 13.8 0.35 0.76 7.11
JOAC 06/20/97 0.68 51.8 0.07 0.63 2.13
LONF 06/20/97 0.79 21.9 0.17 0.86 4.17
MCBN 06/20/97 0.40 10.0 0.49 0.80 8.48
MIVI 06/20/97 0.21 17.4 0.21 1.01 5.86
NSLB 06/20/97 - 22.9 0.18 0.80 3.93
RELI 06/20/97 - 29.5 0.07 1.54 3.14
SSB 06/20/97 - 23.9 0.17 1.73 4.70
Maximum 1.02 52.1 0.49 1.73 8.48
Minimum - 10.0 0.06 0.48 1.90
Average 0.43 25.2 0.21 0.99 4.80
Median 0.40 22.4 0.18 0.84 4.65
19
FERGUSON & COMPANY Exhibit II.7 - Comparatives Risk Characteristice
NPAs + Loans Net Loan
NPAs/ 90+ Pst Due/ NPAs/ Reserves/ Reserves/ Chargeoffs/
Assets Assets Equity Loans NPAs Avg Loans
(%) (%) (%) (%) (%) (%)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 0.89 1.48 3.75 0.20 20.00 -
Crazy Woman Creek Bancorp 0.23 0.23 0.82 1.03 240.34 -
CSB Financial Group Inc. NA 0.74 NA 0.53 NA 0.10
Home Building Bancorp 0.52 0.52 4.30 0.28 32.51 -
Horizon Financial Svcs Corp. 1.02 1.02 9.73 0.56 36.63 0.10
Joachim Bancorp Inc. 0.68 0.68 2.35 0.31 30.45 0.13
London Financial Corporation 0.79 0.79 3.97 0.64 62.54 -
Mid-Coast Bancorp Inc. 0.40 0.40 4.62 0.61 128.70 0.02
Mississippi View Holding Co. 0.21 0.25 1.15 1.93 592.47 0.11
NS&L Bancorp Inc. - 0.06 - 0.13 NM -
Reliance Bancshares Inc. - - - 0.52 NM -
Scotland Bancorp Inc - - - 0.50 NM -
Maximum 1.02 1.48 9.73 1.93 592.47 0.13
Minimum - - - 0.13 20.00 -
Average 0.43 0.51 2.79 0.60 142.96 0.04
Median 0.40 0.46 2.35 0.53 49.59 -
20
FERGUSON & COMPANY Exhibit II.7 - Comparatives Risk Characteristics
- ------------------
Intangible One Year Earn Assets/
Loans/ Assets/ Cum Gap/ Net Int Bearing
Assets Equity Assets Loans Liabilities
(%) (%) (%) ($000) (%)
Short Name MRQ MRQ MRQ MRQ MRQ
CKF Bancorp Inc. 89.94 - NA 54,035 132.43
Crazy Woman Creek Bancorp 53.55 - NA 27,582 140.36
CSB Financial Group Inc. 57.40 5.74 NA 27,404 129.77
Home Building Bancorp 60.41 - NA 28,195 108.55
Horizon Financial Svcs Corp. 66.63 - 7.55 51,923 110.56
Joachim Bancorp Inc. 66.88 - NA 23,772 141.81
London Financial Corporation 76.82 - NA 28,958 125.88
Mid-Coast Bancorp Inc. 83.59 - (11.49) 47,865 105.20
Mississippi View Holding Co. 64.36 - NA 43,978 123.03
NS&L Bancorp Inc. 55.13 - NA 31,919 125.18
Reliance Bancshares Inc. 58.38 NA 14.13 NA 197.41
Scotland Bancorp Inc 69.00 - NA 47,322 159.86
Maximum 89.94 5.74 14.13 54,035 197.41
Minimum 53.55 - (11.49) 23,772 105.20
Average 66.84 0.52 3.40 37,541 133.34
Median 65.50 - 7.55 31,919 127.83
21
EXHIBIT III
FERGUSON & COMPANY Exhibit III
- ------------------
LEXINGTON FIRST FSB
LEXINGTON, TN
FINANCIAL HIGHLIGHTS
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 23,073 23,878 25,964 25,691
% Change in Assets 7.00 3.49 8.74 (1.05)
Total Loans 12,086 13,809 14,510 16,229
Deposits 19,264 19,345 21,074 20,731
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 3,587 3,389 3,719 3,814
Tangible Capital 3,587 3,389 3,736 3,883
Core Capital 3,587 3,389 3,736 3,883
Risk-Based Capital 3,656 3,389 3,844 4,009
Equity Capital/Total Assets 15.55 14.19 14.32 14.85
Core Capital/Risk Based Assets 43.23 36.17 37.73 33.97
Core Capital/Adj Tang Assets 15.55 14.19 14.38 15.07
Tangible Cap/Tangible Assets 15.55 14.19 14.38 15.07
Risk-Based Cap/Risk-Wt Assets 44.06 36.17 38.82 35.07
PROFITABILITY:
Net Income(Loss) 374 367 228 217
Ret on Avg Assets Bef Ext Item 1.68 1.56 0.91 0.84
Return on Average Equity 10.63 10.52 6.38 5.77
Net Interest Income/Avg Assets 4.75 4.45 3.29 3.44
Noninterest Income/Avg Assets 0.19 0.12 0.18 0.22
Noninterest Expense/Avg Assets 2.13 2.28 1.82 2.33
Yield/Cost Spread 4.43 4.09 2.73 2.89
LIQUIDITY:
Int Earn Assets/Int Bear Liab 115.88 114.38 114.57 114.95
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.28 0.36 1.13 1.05
Nonaccrual Loans/Gross Loans - 0.28 - -
Nonaccrual Lns/Ln Loss Reserve - 41.49 - -
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - - 0.10
Nonmtg 1-4 Constr&Conv Lns/TA 1.37 1.20 0.03 0.02
1
FERGUSON & COMPANY Exhibit III
- ------------------
LEXINGTON FIRST FSB
LEXINGTON, TN
SELECTED PEER GROUP RATIOS & RANKINGS
1993 1994 1995 1996
Peer Group Category 1 1 2 2
CAPITAL:
Equity Capital/Total Assets 15.55 14.19 14.32 14.85
Peer Group Percentile 87 72 81 83
Core Cap/Adj Tangible Assets 15.55 14.19 14.38 15.07
Peer Group Percentile 87 72 83 86
Tangible Cap/Tangible Assets 15.55 14.19 14.38 15.07
Peer Group Percentile 87 72 83 86
Risk-Based Cap/Risk-Wt Assets 44.06 36.17 38.82 35.07
Peer Group Percentile 89 75 89 84
ASSET QUALITY:
Risk Assets/Total Assets 1.37 1.20 0.03 0.02
Peer Group Percentile 77 73 97 97
Risk Weighted Assts/Tot Assts 35.96 39.24 38.14 44.49
Peer Group Percentile 81 75 88 70
Nonaccrual Loans/Gross Loans - 0.28 - -
Peer Group Percentile 100 32 100 100
Repos Assets/Tot Assets - - - -
Peer Group Percentile 100 100 100 100
90+ Day Del Loans/Gross Loans 1.27 0.08 1.00 0.68
Peer Group Percentile 14 45 18 26
90Day P Due+NonAccr-(1-4)/LLR - - - -
Peer Group Percentile 100 100 100 100
LIQUIDITY:
Avg Reg Liquidity Ratio 35.40 25.46 25.25 24.41
Peer Group Percentile 83 67 77 79
PROFITABILITY:
Ret on Avg Assets Bef Ext Item 1.68 1.56 0.91 0.84
Peer Group Percentile 94 90 75 91
Return on Equity Capital 10.43 10.83 6.13 5.69
Peer Group Percentile 60 80 51 80
Int Earn Assets/Int Bear Liab 115.88 114.38 114.57 114.95
Peer Group Percentile 86 75 84 83
Yield on Earning Assts 8.05 7.85 7.89 7.94
Peer Group Percentile 74 76 64 66
Cost of Funds 3.62 3.76 5.16 5.05
Peer Group Percentile 77 53 20 29
Yield/Cost Spread 4.43 4.09 2.73 2.89
Peer Group Percentile 86 77 38 42
2
FERGUSON & COMPANY Exhibit III
- ------------------
LEXINGTON FIRST FSB
LEXINGTON, TN
FINANCIAL HIGHLIGHTS
3/31/96 6/30/96 9/30/96 12/31/96
($000's)
BALANCE SHEET:
Total Assets 26,173 25,709 25,724 25,691
% Change in Assets 0.81 (1.77) 0.06 (0.13)
Total Loans 15,041 15,309 15,818 16,229
Deposits 21,242 20,778 20,713 20,731
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 3,746 3,774 3,757 3,814
Tangible Capital 3,793 3,850 3,824 3,883
Core Capital 3,793 3,850 3,824 3,883
Risk-Based Capital 3,908 3,973 3,954 4,009
Equity Capital/Total Assets 14.31 14.68 14.61 14.85
Core Capital/Risk Based Assets 37.79 36.98 35.35 33.97
Core Capital/Adj Tang Assets 14.47 14.93 14.83 15.07
Tangible Cap/Tangible Assets 14.47 14.93 14.83 15.07
Risk-Based Cap/Risk-Wt Assets 38.94 38.16 36.55 35.07
PROFITABILITY:
Net Income(Loss) 76 75 (10) 76
Ret on Avg Assets Bef Ext Item 1.17 1.16 (0.16) 1.18
Return on Average Equity 8.14 7.98 (1.06) 8.03
Net Interest Income/Avg Assets 3.39 3.48 3.36 3.53
Noninterest Income/Avg Assets 0.18 0.22 0.22 0.25
Noninterest Expense/Avg Assets 1.73 1.87 3.80 1.93
Yield/Cost Spread 2.85 2.95 2.78 2.98
LIQUIDITY:
Int Earn Assets/Int Bear Liab 114.25 115.15 115.08 114.95
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.19 1.17 1.01 1.05
Nonaccrual Loans/Gross Loans - - - -
Nonaccrual Lns/Ln Loss Reserve - - - -
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - - 0.37
Nonmtg 1-4 Constr&Conv Lns/TA 0.03 0.16 0.03 0.02
3
FERGUSON & COMPANY Exhibit III
- ------------------
LEXINGTON FIRST FSB
LEXINGTON, TN
SELECTED PEER GROUP RATIOS & RANKINGS
3/31/96 6/30/96 9/30/96 12/31/96
Peer Group Category 2 2 2 2
CAPITAL:
Equity Capital/Total Assets 14.31 14.68 14.61 14.85
Peer Group Percentile 83 83 81 83
Core Cap/Adj Tangible Assets 14.47 14.93 14.83 15.07
Peer Group Percentile 86 85 84 86
Tangible Cap/Tangible Assets 14.47 14.93 14.83 15.07
Peer Group Percentile 86 85 84 86
Risk-Based Cap/Risk-Wt Assets 38.94 38.16 36.55 35.07
Peer Group Percentile 90 87 84 84
ASSET QUALITY:
Risk Assets/Total Assets 0.03 0.16 0.03 0.02
Peer Group Percentile 97 96 96 97
Risk Weighted Assts/Tot Assts 38.35 40.50 42.05 44.49
Peer Group Percentile 86 81 76 70
Nonaccrual Loans/Gross Loans - - - -
Peer Group Percentile 100 100 100 100
Repos Assets/Tot Assets - - - -
Peer Group Percentile 100 100 100 100
90+ Day Del Loans/Gross Loans 1.06 1.02 0.88 0.68
Peer Group Percentile 16 17 20 26
90Day P Due+NonAccr-(1-4)/LLR - - - -
Peer Group Percentile 100 100 100 100
LIQUIDITY:
Avg Reg Liquidity Ratio 29.34 28.89 28.19 24.41
Peer Group Percentile 84 83 84 79
PROFITABILITY:
Ret on Avg Assets Bef Ext Item 1.17 1.16 (0.16) 1.18
Peer Group Percentile 88 84 88 82
Return on Equity Capital 8.12 7.95 (1.06) 7.97
Peer Group Percentile 70 64 88 58
Int Earn Assets/Int Bear Liab 114.25 115.15 115.08 114.95
Peer Group Percentile 84 85 80 83
Yield on Earning Assts 7.91 7.92 7.92 8.02
Peer Group Percentile 65 67 64 71
Cost of Funds 5.06 4.97 5.14 5.04
Peer Group Percentile 33 32 23 30
Yield/Cost Spread 2.85 2.95 2.78 2.98
Peer Group Percentile 44 48 35 43
4
EXHIBIT IV
FERGUSON & COMPANY Exhibit IV
- ------------------
CENTRAL KENTUCKY FSB
DANVILLE, KY
TICKER CKFB FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 50,050 56,377 56,545 60,014
% Change in Assets 3.51 12.64 0.30 6.13
Total Loans 41,974 45,441 49,997 53,544
Deposits 43,599 44,273 43,126 44,762
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 5,664 11,290 12,295 12,431
Tangible Capital 5,664 10,989 11,781 11,967
Core Capital 5,664 10,989 11,781 11,967
Risk-Based Capital 5,740 11,065 11,881 12,074
Equity Capital/Total Assets 11.32 20.03 21.74 20.71
Core Capital/Risk Based Assets 21.41 39.04 33.63 35.07
Core Capital/Adj Tang Assets 11.32 19.65 21.03 20.10
Tangible Cap/Tangible Assets 11.32 19.65 21.03 20.10
Risk-Based Cap/Risk-Wt Assets 21.70 39.31 33.92 35.38
PROFITABILITY:
Net Income(Loss) 560 542 764 827
Ret on Avg Assets Bef Ext Item 1.29 1.02 1.37 1.40
Return on Average Equity 11.78 6.39 6.47 6.55
Net Interest Income/Avg Assets 3.21 2.98 3.87 3.71
Noninterest Income/Avg Assets 0.16 0.16 0.16 0.65
Noninterest Expense/Avg Assets 1.35 1.60 1.89 2.27
Yield/Cost Spread 2.93 2.46 3.11 2.87
LIQUIDITY:
Int Earn Assets/Int Bear Liab 110.09 123.66 125.92 123.97
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.41 1.48 1.09 1.25
Nonaccrual Loans/Gross Loans 0.25 - 0.00 0.16
Nonaccrual Lns/Ln Loss Reserve 136.84 - 2.00 81.31
Repos Assets/Tot Assets 0.07 - - 0.38
Net Chrg-Off/Av Adj Lns - - - -
Nonmtg 1-4 Constr&Conv Lns/TA 10.59 10.51 13.09 12.79
1
FERGUSON & COMPANY Exhibit IV
- ------------------
BUFFALO FS&LA
BUFFALO, WY
TICKER CRZY FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 33,015 35,836 38,217 52,595
% Change in Assets 2.46 8.54 6.64 37.62
Total Loans 20,718 23,177 23,907 26,822
Deposits 26,510 29,114 29,028 29,146
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 5,134 5,513 5,982 10,747
Tangible Capital 5,134 5,513 5,961 10,743
Core Capital 5,134 5,513 5,961 10,743
Risk-Based Capital 5,272 5,607 6,185 11,007
Equity Capital/Total Assets 15.55 15.38 15.65 20.43
Core Capital/Risk Based Assets 32.35 32.02 33.42 50.76
Core Capital/Adj Tang Assets 15.55 15.38 15.61 20.43
Tangible Cap/Tangible Assets 15.55 15.38 15.61 20.43
Risk-Based Cap/Risk-Wt Assets 33.22 32.56 34.67 52.00
PROFITABILITY:
Net Income(Loss) 498 465 395 281
Ret on Avg Assets Bef Ext Item 1.53 1.35 1.07 0.56
Return on Average Equity 10.19 8.73 6.81 2.83
Net Interest Income/Avg Assets 3.96 3.93 3.29 3.08
Noninterest Income/Avg Assets 0.21 0.56 0.54 0.24
Noninterest Expense/Avg Assets 2.35 2.41 2.27 2.44
Yield/Cost Spread 3.57 3.52 2.70 2.23
LIQUIDITY:
Int Earn Assets/Int Bear Liab 114.74 116.28 116.44 123.70
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 4.07 0.01 0.33 0.33
Nonaccrual Loans/Gross Loans 1.17 0.01 0.33 0.33
Nonaccrual Lns/Ln Loss Reserve 104.66 1.40 28.57 31.47
Repos Assets/Tot Assets 1.53 - - -
Net Chrg-Off/Av Adj Lns 0.46 (0.09) (0.10) (0.03)
Nonmtg 1-4 Constr&Conv Lns/TA 8.50 8.83 6.73 4.37
2
FERGUSON & COMPANY Exhibit IV
- ------------------
CENTRALIA SVGS BK
CENTRALIA, IL
TICKER CSBF FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 34,134 33,660 37,826 45,119
% Change in Assets - (1.39) 12.38 19.28
Securities-Book Value 12,030 14,697 12,740 13,185
Securities-Fair Value 12,774 14,363 12,871 13,181
Total Loans & Leases 17,756 17,360 20,890 27,832
Total Deposits 28,961 28,053 28,357 35,514
Loan/Deposit Ratio 61.31 61.88 73.67 78.37
Provision for Loan Losses 24 48 96 63
CAPITAL:
Equity Capital 4,945 5,352 8,562 8,699
Total Qualifying Capital(Est) 5,005 5,448 8,639 8,125
Equity Capital/Average Assets 14.49 15.79 23.41 21.53
Tot Qual Cap/Rk Bsd Asts(Est) 42.13 46.46 55.30 40.44
Tier 1 Cap/Rsk Bsed Asts(Est) 41.62 45.73 54.41 39.79
T1 Cap/Avg Assets(Lev Est) 14.53 16.08 21.09 17.76
Dividends Declared/Net Income - - - -
PROFITABILITY:
Net Income(Loss) 464 419 282 147
Return on Average Assets 1.36 1.24 0.77 0.36
Return on Average Equity Cap 9.38 8.14 4.79 1.71
Net Interest Margin 4.48 4.08 3.87 3.74
Net Int Income/Avg Assets 4.39 3.99 3.54 3.46
Noninterest Income/Avg Assets 0.18 0.17 0.19 0.17
Noninterest Exp/Avg Assets 1.81 2.07 2.15 2.81
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 0.29 2.64 1.62 1.33
NPA's/Equity + LLR 1.02 8.44 3.90 4.20
LLR/Nonperf & Restrcd Lns 117.65 18.98 41.30 35.31
Foreclosed RE/Total Assets - 0.02 - -
90+ Day Del Loans/Total Loans 0.29 2.61 0.03 0.49
Loan Loss Reserves/Total Lns 0.34 0.50 0.67 0.47
Net Charge-Offs/Average Loans 0.06 0.13 0.22 0.30
Dom Risk R/E Lns/Tot Dom Lns 5.08 3.96 8.36 7.75
LIQUIDITY:
Brokered Dep/Total Dom Deps - - - -
$100M+ Time Dep/Total Dom Dep 5.31 6.76 5.22 4.49
Int Earn Assets/Int Bear Liab 116.72 118.73 130.07 122.45
Pledged Sec/Total Sec - - - -
Fair Value Sec/Amort Cost Sec 106.18 97.63 101.84 99.98
3
FERGUSON & COMPANY Exhibit IV
- ------------------
HOME BUILDING SVGS BK FSB
WASHINGTON, IN
TICKER HBBI FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 42,816 42,107 42,796 44,337
% Change in Assets 4.22 (1.66) 1.64 3.60
Total Loans 30,583 29,944 29,177 28,500
Deposits 37,235 36,629 33,283 35,589
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 2,795 3,090 4,639 4,335
Tangible Capital 2,795 3,090 4,611 4,338
Core Capital 2,795 3,090 4,611 4,338
Risk-Based Capital 2,840 3,167 4,688 4,417
Equity Capital/Total Assets 6.53 7.34 10.84 9.78
Core Capital/Risk Based Assets 12.92 13.65 20.99 20.19
Core Capital/Adj Tang Assets 6.53 7.35 10.79 9.78
Tangible Cap/Tangible Assets 6.53 7.35 10.79 9.78
Risk-Based Cap/Risk-Wt Assets 13.13 13.99 21.35 20.56
PROFITABILITY:
Net Income(Loss) 436 327 421 (138)
Ret on Avg Assets Bef Ext Item 1.04 0.77 1.01 (0.32)
Return on Average Equity 16.92 11.11 9.69 (3.15)
Net Interest Income/Avg Assets 3.25 3.21 3.47 3.18
Noninterest Income/Avg Assets 0.31 0.24 0.39 0.34
Noninterest Expense/Avg Assets 1.94 2.10 2.27 2.86
Yield/Cost Spread 3.36 3.32 3.39 3.18
LIQUIDITY:
Int Earn Assets/Int Bear Liab 101.41 102.72 105.49 103.42
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.27 0.68 0.32 1.60
Nonaccrual Loans/Gross Loans 0.09 0.67 0.20 1.59
Nonaccrual Lns/Ln Loss Reserve 64.44 263.64 77.92 577.22
Repos Assets/Tot Assets - - 0.08 -
Net Chrg-Off/Av Adj Lns 0.01 0.03 - 1.44
Nonmtg 1-4 Constr&Conv Lns/TA 0.80 0.53 0.81 0.69
4
FERGUSON & COMPANY Exhibit IV
- ------------------
HORIZON FSB
OSKALOOSA, IA
TICKER HZFS FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 57,544 63,008 71,498 72,514
% Change in Assets 5.82 9.50 13.47 1.42
Total Loans 38,155 43,162 48,886 51,591
Deposits 51,772 50,378 53,947 55,861
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 4,356 6,496 6,562 5,838
Tangible Capital 4,356 6,725 6,535 5,703
Core Capital 4,356 6,725 6,535 5,703
Risk-Based Capital 4,687 6,968 6,781 5,953
Equity Capital/Total Assets 7.57 10.31 9.18 8.05
Core Capital/Risk Based Assets 14.98 19.97 16.39 13.70
Core Capital/Adj Tang Assets 7.57 10.64 9.14 7.88
Tangible Cap/Tangible Assets 7.57 10.64 9.14 7.88
Risk-Based Cap/Risk-Wt Assets 16.12 20.70 17.00 14.30
PROFITABILITY:
Net Income(Loss) 477 460 411 75
Ret on Avg Assets Bef Ext Item 0.85 0.76 0.61 0.10
Return on Average Equity 11.56 8.48 6.42 1.21
Net Interest Income/Avg Assets 3.47 3.43 3.07 2.99
Noninterest Income/Avg Assets 0.49 0.46 0.47 0.59
Noninterest Expense/Avg Assets 2.62 2.68 2.54 2.87
Yield/Cost Spread 3.44 3.35 2.88 2.84
LIQUIDITY:
Int Earn Assets/Int Bear Liab 104.11 107.83 107.16 104.89
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.61 1.81 2.53 2.57
Nonaccrual Loans/Gross Loans 1.57 0.87 2.49 1.27
Nonaccrual Lns/Ln Loss Reserve 161.05 130.58 427.34 225.17
Repos Assets/Tot Assets 0.01 0.35 0.01 0.47
Net Chrg-Off/Av Adj Lns (0.01) 0.22 0.03 0.78
Nonmtg 1-4 Constr&Conv Lns/TA 8.33 7.12 6.57 5.98
5
FERGUSON & COMPANY Exhibit IV
- ------------------
JOACHIM FS&LA
DE SOTO, MO
TICKER JOAC FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 31,101 29,034 33,539 32,329
% Change in Assets (0.22) (6.65) 15.52 (3.61)
Total Loans 22,939 22,242 21,968 24,158
Deposits 26,904 24,652 25,345 24,075
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 3,780 4,030 7,286 7,427
Tangible Capital 3,780 4,030 7,286 7,427
Core Capital 3,780 4,030 7,286 7,427
Risk-Based Capital 3,827 4,088 7,356 7,502
Equity Capital/Total Assets 12.15 13.88 21.72 22.97
Core Capital/Risk Based Assets 21.68 25.83 44.85 45.42
Core Capital/Adj Tang Assets 12.16 13.88 21.73 22.97
Tangible Cap/Tangible Assets 12.16 13.88 21.73 22.97
Risk-Based Cap/Risk-Wt Assets 21.95 26.20 45.28 45.88
PROFITABILITY:
Net Income(Loss) 255 251 210 88
Ret on Avg Assets Bef Ext Item 0.82 0.83 0.68 0.26
Return on Average Equity 6.93 6.43 4.65 1.20
Net Interest Income/Avg Assets 3.74 3.77 3.56 3.71
Noninterest Income/Avg Assets 0.45 0.38 0.29 0.27
Noninterest Expense/Avg Assets 2.60 2.82 2.77 3.59
Yield/Cost Spread 3.76 3.76 3.35 3.04
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.50 109.88 123.18 125.87
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 2.80 3.20 0.13 1.56
Nonaccrual Loans/Gross Loans 0.51 0.37 0.07 0.66
Nonaccrual Lns/Ln Loss Reserve 248.94 141.38 21.43 213.33
Repos Assets/Tot Assets 0.81 1.07 - 0.31
Net Chrg-Off/Av Adj Lns 0.01 0.02 0.02 0.00
Nonmtg 1-4 Constr&Conv Lns/TA 4.56 5.92 4.55 6.64
6
FERGUSON & COMPANY Exhibit IV
- ------------------
CITIZENS L&SC
LONDON, OH
TICKER LONF FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 30,915 32,226 34,615 35,289
% Change in Assets 6.42 4.24 7.41 1.95
Total Loans 25,018 26,717 27,877 28,003
Deposits 27,684 28,754 30,989 28,795
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 2,879 3,123 3,267 5,524
Tangible Capital 2,879 3,123 3,267 5,524
Core Capital 2,879 3,123 3,267 5,524
Risk-Based Capital 3,062 3,315 3,454 5,712
Equity Capital/Total Assets 9.31 9.69 9.44 15.65
Core Capital/Risk Based Assets 17.19 18.01 18.11 28.82
Core Capital/Adj Tang Assets 9.31 9.69 9.44 15.65
Tangible Cap/Tangible Assets 9.31 9.69 9.44 15.65
Risk-Based Cap/Risk-Wt Assets 18.28 19.12 19.15 29.80
PROFITABILITY:
Net Income(Loss) 308 244 144 225
Ret on Avg Assets Bef Ext Item 1.03 0.77 0.43 0.64
Return on Average Equity 11.30 8.13 4.48 4.18
Net Interest Income/Avg Assets 3.69 3.28 2.86 3.51
Noninterest Income/Avg Assets 0.24 0.25 0.24 0.21
Noninterest Expense/Avg Assets 2.35 2.38 2.43 2.78
Yield/Cost Spread 3.51 3.10 2.60 2.94
LIQUIDITY:
Int Earn Assets/Int Bear Liab 107.43 107.79 107.36 116.24
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.61 0.09 0.16 1.06
Nonaccrual Loans/Gross Loans 0.59 0.08 0.16 1.00
Nonaccrual Lns/Ln Loss Reserve 79.79 11.46 24.06 159.04
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - 0.02 (0.00)
Nonmtg 1-4 Constr&Conv Lns/TA 16.60 16.87 15.78 14.37
7
FERGUSON & COMPANY Exhibit IV
- ------------------
WALDOBORO BANK FSB
WALDOBORO, ME
TICKER MCBN FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 50,035 52,508 55,423 57,851
% Change in Assets 7.49 4.94 5.55 4.38
Total Loans 42,698 44,093 44,092 48,340
Deposits 35,398 38,161 41,932 42,490
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 4,212 4,472 4,857 4,937
Tangible Capital 4,212 4,472 4,857 4,937
Core Capital 4,212 4,472 4,857 4,937
Risk-Based Capital 4,418 4,650 5,077 5,233
Equity Capital/Total Assets 8.42 8.52 8.76 8.53
Core Capital/Risk Based Assets 15.02 15.23 15.64 14.37
Core Capital/Adj Tang Assets 8.42 8.52 8.76 8.53
Tangible Cap/Tangible Assets 8.42 8.52 8.76 8.53
Risk-Based Cap/Risk-Wt Assets 15.76 15.84 16.35 15.24
PROFITABILITY:
Net Income(Loss) 558 428 385 228
Ret on Avg Assets Bef Ext Item 1.06 0.83 0.71 0.41
Return on Average Equity 12.88 9.86 8.22 4.68
Net Interest Income/Avg Assets 3.73 3.61 3.47 3.72
Noninterest Income/Avg Assets 0.44 0.36 0.41 0.45
Noninterest Expense/Avg Assets 2.32 2.43 2.66 3.32
Yield/Cost Spread 3.61 3.57 3.44 3.80
LIQUIDITY:
Int Earn Assets/Int Bear Liab 105.48 104.69 104.43 103.47
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.77 1.00 1.39 0.60
Nonaccrual Loans/Gross Loans 1.63 0.24 1.19 0.41
Nonaccrual Lns/Ln Loss Reserve 328.11 59.55 240.00 67.57
Repos Assets/Tot Assets 0.10 0.65 0.16 0.16
Net Chrg-Off/Av Adj Lns 0.04 0.45 0.06 0.09
Nonmtg 1-4 Constr&Conv Lns/TA 6.13 8.01 10.06 12.14
8
FERGUSON & COMPANY Exhibit IV
- ------------------
COMMUNITY FS&LA
LITTLE FALLS, MN
TICKER MIVI FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 64,942 62,111 69,212 70,306
% Change in Assets (2.47) (4.36) 11.43 1.58
Total Loans 44,315 44,310 43,438 44,095
Deposits 58,783 55,312 54,689 56,426
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 5,646 6,137 10,912 11,504
Tangible Capital 5,634 6,043 10,692 10,639
Core Capital 5,634 6,043 10,692 10,639
Risk-Based Capital 5,985 6,419 11,092 11,068
Equity Capital/Total Assets 8.69 9.88 15.77 16.36
Core Capital/Risk Based Assets 17.01 18.90 32.13 31.25
Core Capital/Adj Tang Assets 8.68 9.74 15.50 15.32
Tangible Cap/Tangible Assets 8.68 9.74 15.50 15.32
Risk-Based Cap/Risk-Wt Assets 18.07 20.08 33.33 32.51
PROFITABILITY:
Net Income(Loss) 748 414 837 520
Ret on Avg Assets Bef Ext Item 1.14 0.65 1.22 0.74
Return on Average Equity 14.19 7.03 8.46 4.81
Net Interest Income/Avg Assets 3.25 3.40 3.63 3.47
Noninterest Income/Avg Assets 0.39 0.40 0.53 0.43
Noninterest Expense/Avg Assets 2.05 2.40 2.17 2.70
Yield/Cost Spread 3.06 3.23 3.21 2.94
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.19 108.61 115.61 118.25
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.55 0.09 0.22 0.59
Nonaccrual Loans/Gross Loans 0.01 0.05 - 0.38
Nonaccrual Lns/Ln Loss Reserve 0.58 2.06 - 19.73
Repos Assets/Tot Assets 0.11 - 0.02 -
Net Chrg-Off/Av Adj Lns 0.19 (0.03) 0.33 0.02
Nonmtg 1-4 Constr&Conv Lns/TA 4.64 5.96 2.47 2.85
9
FERGUSON & COMPANY Exhibit IV
- ------------------
NEOSHO S&LA, FA
NEOSHO, MO
TICKER NSLB FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 52,078 49,738 53,156 56,645
% Change in Assets (0.43) (4.49) 6.87 6.56
Total Loans 22,758 25,095 28,013 31,762
Deposits 46,092 43,274 41,964 44,062
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 5,531 6,018 9,947 8,339
Tangible Capital 5,531 6,018 9,947 8,339
Core Capital 5,531 6,018 9,947 8,339
Risk-Based Capital 5,552 6,036 9,945 8,381
Equity Capital/Total Assets 10.62 12.10 18.71 14.72
Core Capital/Risk Based Assets 31.27 34.70 51.58 38.31
Core Capital/Adj Tang Assets 10.62 12.10 18.71 14.72
Tangible Cap/Tangible Assets 10.62 12.10 18.71 14.72
Risk-Based Cap/Risk-Wt Assets 31.39 34.81 51.57 38.50
PROFITABILITY:
Net Income(Loss) 590 471 471 186
Ret on Avg Assets Bef Ext Item 1.27 0.93 0.88 0.33
Return on Average Equity 12.68 8.16 5.59 1.97
Net Interest Income/Avg Assets 3.32 3.04 2.95 2.80
Noninterest Income/Avg Assets 0.63 0.59 0.53 0.43
Noninterest Expense/Avg Assets 2.02 2.17 2.24 2.79
Yield/Cost Spread 3.25 2.94 2.58 2.32
LIQUIDITY:
Int Earn Assets/Int Bear Liab 109.01 110.37 119.53 114.10
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.08 0.04 0.12 0.14
Nonaccrual Loans/Gross Loans - - 0.12 0.14
Nonaccrual Lns/Ln Loss Reserve - - 89.74 107.14
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - (0.02) -
Nonmtg 1-4 Constr&Conv Lns/TA 0.53 0.42 0.33 0.20
10
FERGUSON & COMPANY Exhibit IV
- ------------------
RELIANCE SVGS BK
MILWAUKEE, WI
TICKER RELI FINANCIAL HIGHLIGHTS
- -----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 33,093 32,639 32,150 40,442
% Change in Assets - (1.37) (1.50) 25.79
Securities-Book Value 3,951 10,711 8,769 12,786
Securities-Fair Value 4,105 10,691 8,857 12,838
Total Loans & Leases 18,251 20,340 22,235 25,222
Total Deposits 23,816 22,914 21,460 17,932
Loan/Deposit Ratio 76.63 88.77 103.61 140.65
Provision for Loan Losses 22 22 22 22
CAPITAL:
Equity Capital 9,052 9,282 9,969 19,652
Total Qualifying Capital(Est) 9,126 9,399 9,821 19,410
Equity Capital/Average Assets 27.35 28.24 30.39 51.69
Tot Qual Cap/Rk Bsd Asts(Est) 61.14 45.16 45.62 81.73
Tier 1 Cap/Rsk Bsed Asts(Est) 60.65 44.71 45.09 81.16
T1 Cap/Avg Assets(Lev Est) 26.97 27.95 30.19 44.56
Dividends Declared/Net Income - - - -
PROFITABILITY:
Net Income(Loss) 381 373 400 497
Return on Average Assets 1.15 1.13 1.22 1.31
Return on Average Equity Cap 4.21 4.07 4.15 3.16
Net Interest Margin 4.71 4.63 4.28 4.92
Net Int Income/Avg Assets 3.73 4.12 4.16 4.68
Noninterest Income/Avg Assets (0.07) 0.04 0.04 0.02
Noninterest Exp/Avg Assets 1.65 2.20 2.13 2.28
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 0.37 - - -
NPA's/Equity + LLR 0.73 - - -
LLR/Nonperf & Restrcd Lns 110.45 - - -
Foreclosed RE/Total Assets - - - -
90+ Day Del Loans/Total Loans 0.37 - - -
Loan Loss Reserves/Total Lns 0.41 0.46 0.52 0.55
Net Charge-Offs/Average Loans - 0.01 - -
Dom Risk R/E Lns/Tot Dom Lns 40.15 34.08 36.80 33.82
LIQUIDITY:
Brokered Dep/Total Dom Deps - - - -
$100M+ Time Dep/Total Dom Dep 6.88 9.10 10.41 7.20
Int Earn Assets/Int Bear Liab 137.66 138.79 144.61 196.95
Pledged Sec/Total Sec - - - -
Fair Value Sec/Amort Cost Sec 103.90 99.45 106.26 105.54
11
FERGUSON & COMPANY Exhibit IV
- ------------------
SCOTLAND SVGS BK
LAURINBURG, NC
TICKER SSB FINANCIAL HIGHLIGHTS
- ----------
1993 1994 1995 1996
($000's)
BALANCE SHEET:
Total Assets 55,357 57,740 58,049 60,714
% Change in Assets (1.10) 4.30 0.54 4.59
Securities-Book Value 5,247 14,250 11,806 11,018
Securities-Fair Value 5,815 14,086 11,912 11,081
Total Loans & Leases 39,671 37,296 42,003 46,305
Total Deposits 47,653 49,124 48,346 42,432
Loan/Deposit Ratio 83.25 75.92 86.88 109.13
Provision for Loan Losses 5 25 12 24
CAPITAL:
Equity Capital 7,093 7,921 8,860 17,136
Total Qualifying Capital(Est) 7,270 7,897 8,609 16,834
Equity Capital/Average Assets 12.74 14.01 15.02 26.95
Tot Qual Cap/Rk Bsd Asts(Est) 26.33 30.02 30.65 57.41
Tier 1 Cap/Rsk Bsed Asts(Est) 25.69 29.25 29.89 56.62
T1 Cap/Avg Assets(Lev Est) 14.44 13.05 14.11 27.12
Dividends Declared/Net Income - - - 30.14
PROFITABILITY:
Net Income(Loss) 465 577 700 647
Return on Average Assets 0.84 1.02 1.19 1.02
Return on Average Equity Cap 6.78 7.69 8.36 4.08
Net Interest Margin 4.07 3.89 3.80 4.30
Net Int Income/Avg Assets 4.01 3.82 3.66 4.11
Noninterest Income/Avg Assets 0.10 0.27 0.11 0.09
Noninterest Exp/Avg Assets 1.93 2.44 1.92 2.58
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 0.29 - - 0.07
NPA's/Equity + LLR 1.60 - - 0.18
LLR/Nonperf & Restrcd Lns 152.59 - - 745.16
Foreclosed RE/Total Assets - - - -
90+ Day Del Loans/Total Loans 0.29 - - 0.07
Loan Loss Reserves/Total Lns 0.45 0.54 0.51 0.50
Net Charge-Offs/Average Loans - - - 0.02
Dom Risk R/E Lns/Tot Dom Lns 8.13 7.58 6.59 6.50
LIQUIDITY:
Brokered Dep/Total Dom Deps - - - -
$100M+ Time Dep/Total Dom Dep 6.02 7.36 8.60 6.66
Int Earn Assets/Int Bear Liab 114.75 115.85 118.12 142.09
Pledged Sec/Total Sec 10.04 2.55 6.02 5.95
Fair Value Sec/Amort Cost Sec 110.83 101.29 107.31 108.53
12
EXHIBIT V
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
AADV Advantage Bancorp Inc. Kenosha WI MW SAIF NASDAQ 03/23/92 39.000
ABBK Abington Bancorp Inc. Abington MA NE BIF NASDAQ 06/10/86 25.000
ABCL Alliance Bancorp Inc. Hinsdale IL MW SAIF NASDAQ 07/07/92 29.875
ABCW Anchor BanCorp Wisconsin Madison WI MW SAIF NASDAQ 07/16/92 50.000
AFCB Affiliated Community Bancorp Waltham MA NE SAIF NASDAQ 10/19/95 24.375
AHM Ahmanson & Company (H.F.) Irwindale CA WE SAIF NYSE 10/25/72 47.125
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 22.000
ALBK ALBANK Financial Corporation Albany NY MA SAIF NASDAQ 04/01/92 39.813
ANBK American National Bancorp Baltimore MD MA SAIF NASDAQ 10/31/95 16.125
ANDB Andover Bancorp Inc. Andover MA NE BIF NASDAQ 05/08/86 29.375
ASBI Ameriana Bancorp New Castle IN MW SAIF NASDAQ 03/02/87 15.625
ASBP ASB Financial Corp. Portsmouth OH MW SAIF NASDAQ 05/11/95 12.000
ASFC Astoria Financial Corporation Lake Success NY MA SAIF NASDAQ 11/18/93 45.625
BANC BankAtlantic Bancorp Inc. Fort Lauderdale FL SE SAIF NASDAQ 11/29/83 14.125
BDJI First Federal Bancorporation Bemidji MN MW SAIF NASDAQ 04/04/95 18.750
BFD BostonFed Bancorp Inc. Burlington MA NE SAIF AMSE 10/24/95 17.688
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 20.750
BKC American Bank of Connecticut Waterbury CT NE BIF AMSE 12/01/81 35.500
BKCT Bancorp Connecticut Inc. Southington CT NE BIF NASDAQ 07/03/86 25.500
BKUNA BankUnited Financial Corp. Coral Gables FL SE SAIF NASDAQ 12/11/85 9.625
BSBC Branford Savings Bank Branford CT NE BIF NASDAQ 11/04/86 4.688
BVCC Bay View Capital Corp. San Mateo CA WE SAIF NASDAQ 05/09/86 26.625
CAFI Camco Financial Corp. Cambridge OH MW SAIF NASDAQ NA 18.000
CAPS Capital Savings Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 12/29/93 16.625
CASB Cascade Financial Corp. Everett WA WE SAIF NASDAQ 09/16/92 18.500
CASH First Midwest Financial Inc. Storm Lake IA MW SAIF NASDAQ 09/20/93 15.125
CBCI Calumet Bancorp Inc. Dolton IL MW SAIF NASDAQ 02/20/92 39.500
CBSA Coastal Bancorp Inc. Houston TX SW SAIF NASDAQ NA 28.750
CBSB Charter Financial Inc. Sparta IL MW SAIF NASDAQ 12/29/95 17.063
CEBK Central Co-operative Bank Somerville MA NE BIF NASDAQ 10/24/86 18.125
CENF CENFED Financial Corp. Pasadena CA WE SAIF NASDAQ 10/25/91 32.750
CFB Commercial Federal Corporation Omaha NE MW SAIF NYSE 12/31/84 37.500
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 22.500
CFSB CFSB Bancorp Inc. Lansing MI MW SAIF NASDAQ 06/22/90 23.250
CFTP Community Federal Bancorp Tupelo MS SE SAIF NASDAQ 03/26/96 17.625
CFX CFX Corporation Keene NH NE BIF AMSE 02/12/87 18.125
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 13.500
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 19.250
CMRN Cameron Financial Corp Cameron MO MW SAIF NASDAQ 04/03/95 16.750
CMSV Community Savings, MHC North Palm Beach FL SE SAIF NASDAQ 10/24/94 21.750
CNIT CENIT Bancorp Inc. Norfolk VA SE SAIF NASDAQ 08/06/92 44.500
COFI Charter One Financial Cleveland OH MW SAIF NASDAQ 01/22/88 51.000
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 13.500
CSA Coast Savings Financial Los Angeles CA WE SAIF NYSE 12/23/85 46.000
CTZN CitFed Bancorp Inc. Dayton OH MW SAIF NASDAQ 01/23/92 37.563
CVAL Chester Valley Bancorp Inc. Downingtown PA MA SAIF NASDAQ 03/27/87 21.000
DFIN Damen Financial Corp. Schaumburg IL MW SAIF NASDAQ 10/02/95 14.375
DIBK Dime Financial Corp. Wallingford CT NE BIF NASDAQ 07/09/86 23.000
DME Dime Bancorp Inc. New York NY MA BIF NYSE 08/19/86 19.000
DNFC D & N Financial Corp. Hancock MI MW SAIF NASDAQ 02/13/85 19.063
DSL Downey Financial Corp. Newport Beach CA WE SAIF NYSE 01/01/71 23.250
EBSI Eagle Bancshares Tucker GA SE SAIF NASDAQ 04/01/86 17.875
EFBI Enterprise Federal Bancorp West Chester OH MW SAIF NASDAQ 10/17/94 18.250
EGFC Eagle Financial Corp. Bristol CT NE SAIF NASDAQ 02/03/87 30.750
EIRE Emerald Isle Bancorp Inc. Quincy MA NE BIF NASDAQ 09/08/86 18.500
EMLD Emerald Financial Corp. Strongsville OH MW SAIF NASDAQ NA 14.063
EQSB Equitable Federal Savings Bank Wheaton MD MA SAIF NASDAQ 09/10/93 36.250
1
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Deposit
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
ESBK Elmira Savings Bank (The) Elmira NY MA BIF NASDAQ 03/01/85 19.250
FBBC First Bell Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/29/95 16.000
FBCI Fidelity Bancorp Inc. Chicago IL MW SAIF NASDAQ 12/15/93 19.000
FBHC Fort Bend Holding Corp. Rosenberg TX SW SAIF NASDAQ 06/30/93 28.750
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 20.000
FCME First Coastal Corporation Westbrook ME NE BIF NASDAQ NA 9.125
FED FirstFed Financial Corp. Santa Monica CA WE SAIF NYSE 12/16/83 30.625
FESX First Essex Bancorp Inc. Andover MA NE BIF NASDAQ 08/04/87 16.500
FFBA First Colorado Bancorp Inc. Lakewood CO SW SAIF NASDAQ 01/02/96 18.875
FFBI First Financial Bancorp Inc. Belvidere IL MW SAIF NASDAQ 10/04/93 18.750
FFBS FFBS BanCorp Inc. Columbus MS SE SAIF NASDAQ 07/01/93 23.000
FFBZ First Federal Bancorp Inc. Zanesville OH MW SAIF NASDAQ 07/13/92 18.250
FFCH First Financial Holdings Inc. Charleston SC SE SAIF NASDAQ 11/10/83 29.500
FFDB FirstFed Bancorp Incorporated Bessemer AL SE SAIF NASDAQ 11/19/91 16.750
FFES First Federal of East Hartford East Hartford CT NE SAIF NASDAQ 06/23/87 29.750
FFFC FFVA Financial Corp. Lynchburg VA SE SAIF NASDAQ 10/12/94 26.750
FFFD North Central Bancshares Inc. Fort Dodge IA MW SAIF NASDAQ 03/21/96 15.250
FFFL Fidelity Bankshares Inc., MHC West Palm Beach FL SE SAIF NASDAQ 01/07/94 19.375
FFHH FSF Financial Corp. Hutchinson MN MW SAIF NASDAQ 10/07/94 17.438
FFHS First Franklin Corporation Cincinnati OH MW SAIF NASDAQ 01/26/88 20.000
FFIC Flushing Financial Corp. Flushing NY MA BIF NASDAQ 11/21/95 19.875
FFKY First Federal Financial Corp. Elizabethtown KY MW SAIF NASDAQ 07/15/87 18.500
FFLC FFLC Bancorp Inc. Leesburg FL SE SAIF NASDAQ 01/04/94 28.500
FFOH Fidelity Financial of Ohio Cincinnati OH MW SAIF NASDAQ 03/04/96 15.000
FFSL First Independence Corp. Independence KS MW SAIF NASDAQ 10/08/93 11.188
FFSX First Fed SB of Siouxland, MHC Sioux City IA MW SAIF NASDAQ 07/13/92 23.750
FFWC FFW Corp. Wabash IN MW SAIF NASDAQ 04/05/93 26.000
FFWD Wood Bancorp Inc. Bowling Green OH MW SAIF NASDAQ 08/31/93 16.875
FFYF FFY Financial Corp. Youngstown OH MW SAIF NASDAQ 06/28/93 25.875
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 7.250
FIBC Financial Bancorp Inc. Long Island City NY MA SAIF NASDAQ 08/17/94 17.250
FKFS First Keystone Financial Media PA MA SAIF NASDAQ 01/26/95 23.000
FLFC First Liberty Financial Corp. Macon GA SE SAIF NASDAQ 12/06/83 21.750
FMCO FMS Financial Corporation Burlington NJ MA SAIF NASDAQ 12/14/88 23.500
FMSB First Mutual Savings Bank Bellevue WA WE BIF NASDAQ 12/17/85 17.250
FNGB First Northern Capital Corp. Green Bay WI MW SAIF NASDAQ 12/29/83 21.250
FOBC Fed One Bancorp Wheeling WV SE SAIF NASDAQ 01/19/95 21.000
FRC First Republic Bancorp San Francisco CA WE BIF NYSE NA 21.500
FSBI Fidelity Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/24/88 20.000
FSFC First Southeast Financial Corp Anderson SC SE SAIF NASDAQ 10/08/93 10.125
FSLA First Savings Bank, MHC Woodbridge NJ MA SAIF NASDAQ 07/10/92 24.000
FSPG First Home Bancorp Inc. Pennsville NJ MA SAIF NASDAQ 04/20/87 19.375
FSTC First Citizens Corporation Newnan GA SE SAIF NASDAQ 03/01/86 24.750
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 18.000
FTFC First Federal Capital Corp. La Crosse WI MW SAIF NASDAQ 11/02/89 22.000
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 10.500
FWWB First SB of Washington Bancorp Walla Walla WA WE SAIF NASDAQ 11/01/95 21.500
GAF GA Financial Inc. Pittsburgh PA MA SAIF AMSE 03/26/96 18.938
GBCI Glacier Bancorp Inc. Kalispell MT WE SAIF NASDAQ 03/30/84 17.750
GDW Golden West Financial Oakland CA WE SAIF NYSE 05/29/59 73.250
GFCO Glenway Financial Corp. Cincinnati OH MW SAIF NASDAQ 11/30/90 25.750
GFSB GFS Bancorp Inc. Grinnell IA MW SAIF NASDAQ 01/06/94 13.250
GLN Glendale Federal Bank FSB Glendale CA WE SAIF NYSE 10/01/83 25.375
GPT GreenPoint Financial Corp. New York NY MA BIF NYSE 01/28/94 66.375
GSBC Great Southern Bancorp Inc. Springfield MO MW SAIF NASDAQ 12/14/89 17.000
GTFN Great Financial Corporation Louisville KY MW SAIF NASDAQ 03/31/94 34.750
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 19.000
2
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SIAF) Exchange IPO Date ($)
HALL Hallmark Capital Corp. West Allis WI MW SAIF NASDAQ 01/03/94 21.625
HARB Harbor Federal Savings Bk, MHC Fort Pierce FL SE SAIF NASDAQ 01/06/94 40.750
HARL Harleysville Savings Bank Harleysville PA MA SAIF NASDAQ 08/04/87 22.000
HARS Harris Savings Bank, MHC Harrisburg PA MA SAIF NASDAQ 01/25/94 21.250
HAVN Haven Bancorp Inc. Woodhaven NY MA SAIF NASDAQ 09/23/93 37.000
HBFW Home Bancorp Fort Wayne IN MW SAIF NASDAQ 03/30/95 20.625
HBNK Highland Federal Bank FSB Burbank CA WE SAIF NASDAQ NA 23.875
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 16.938
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY MW SAIF NASDAQ 10/04/95 15.000
HFFC HF Financial Corp. Sioux Falls SD MW SAIF NASDAQ 04/08/92 19.750
HFGI Harrington Financial Group Richmond IN MW SAIF NASDAQ NA 12.250
HFNC HFNC Financial Corp. Charlotte NC SE SAIF NASDAQ 12/29/95 16.750
HFSA Hardin Bancorp Inc. Hardin MO MW SAIF NASDAQ 09/29/95 14.625
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 10.500
HIFS Hingham Instit. for Savings Hingham MA NE BIF NASDAQ 12/20/88 19.875
HMCI HomeCorp Inc. Rockford IL MW SAIF NASDAQ 06/22/90 14.250
HMNF HMN Financial Inc. Spring Valley MN MW SAIF NASDAQ 06/30/94 23.000
HOMF Home Federal Bancorp Seymour IN MW SAIF NASDAQ 01/23/88 27.750
HPBC Home Port Bancorp Inc. Nantucket MA NE BIF NASDAQ 08/25/88 20.250
HRBF Harbor Federal Bancorp Inc. Baltimore MD MA SAIF NASDAQ 08/12/94 18.000
HRZB Horizon Financial Corp. Bellingham WA WE BIF NASDAQ 08/01/86 16.125
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 19.250
IFSB Independence Federal Savings Washington DC MA SAIF NASDAQ 06/06/85 9.000
INBI Industrial Bancorp Bellevue OH MW SAIF NASDAQ 08/01/95 13.438
IPSW Ipswich Savings Bank Ipswich MA NE BIF NASDAQ 05/26/93 16.250
ISBF ISB Financial Corporation New Iberia LA SW SAIF NASDAQ 04/07/95 23.250
ITLA ITLA Capital Corp. La Jolla CA WE BIF NASDAQ 10/24/95 16.000
IWBK InterWest Bancorp Inc. Oak Harbor WA WE SAIF NASDAQ NA 36.000
JSBA Jefferson Savings Bancorp Ballwin MO MW SAIF NASDAQ 04/08/93 29.875
JSBF JSB Financial Inc. Lynbrook NY MA BIF NASDAQ 06/27/90 43.875
KFBI Klamath First Bancorp Klamath Falls OR WE SAIF NASDAQ 10/05/95 18.750
KNK Kankakee Bancorp Inc. Kankakee IL MW SAIF AMSE 01/06/93 29.000
KSAV KS Bancorp Inc. Kenly NC SE SAIF NASDAQ 12/30/93 25.500
KSBK KSB Bancorp Inc. Kingfield ME NE BIF NASDAQ 06/24/93 35.000
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 11.000
LARK Landmark Bancshares Inc. Dodge City KS MW SAIF NASDAQ 03/28/94 20.125
LARL Laurel Capital Group Inc. Allison Park PA MA SAIF NASDAQ 02/20/87 21.500
LFED Leeds Federal Savings Bk, MHC Baltimore MD MA SAIF NASDAQ 05/02/94 19.000
LIFB Life Bancorp Inc. Norfolk VA SE SAIF NASDAQ 10/11/94 23.625
LISB Long Island Bancorp Inc. Melville NY MA SAIF NASDAQ 04/18/94 36.125
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 14.000
LSBI LSB Financial Corp. Lafayette IN MW BIF NASDAQ 02/03/95 20.875
LSBX Lawrence Savings Bank North Andover MA NE BIF NASDAQ 05/02/86 10.750
LVSB Lakeview Financial West Paterson NJ MA SAIF NASDAQ 12/22/93 32.250
MAFB MAF Bancorp Inc. Clarendon Hills IL MW SAIF NASDAQ 01/12/90 41.375
MARN Marion Capital Holdings Marion IN MW SAIF NASDAQ 03/18/93 22.625
MASB MASSBANK Corp. Reading MA NE BIF NASDAQ 05/28/86 46.750
MBB MSB Bancorp Inc. Goshen NY MA BIF AMSE 09/03/92 19.250
MBB MSB Bancorp, Inc. Goshen NY MA BIF AMSE NA 19.250
MBLF MBLA Financial Corp. Macon MO MW SAIF NASDAQ 06/24/93 24.000
MCBN Mid-Coast Bancorp Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 19.500
MCBS Mid Continent Bancshares Inc. El Dorado KS MW SAIF NASDAQ 06/27/94 27.500
MDBK Medford Savings Bank Medford MA NE BIF NASDAQ 03/18/86 30.500
MERI Meritrust Federal SB Thibodaux LA SW SAIF NASDAQ NA 38.000
MFBC MFB Corp. Mishawaka IN MW SAIF NASDAQ 03/25/94 19.750
MFFC Milton Federal Financial Corp. West Milton OH MW SAIF NASDAQ 10/07/94 14.000
MFLR Mayflower Co-operative Bank Middleboro MA NE BIF NASDAQ 12/23/87 18.000
3
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
MFSL Maryland Federal Bancorp Hyattsville MD MA SAIF NASDAQ 06/02/87 44.250
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 14.625
MLBC ML Bancorp Inc. Villanova PA MA SAIF NASDAQ 08/11/94 19.063
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 22.000
MWBI Midwest Bancshares Inc. Burlington IA MW SAIF NASDAQ 11/12/92 31.500
MWBX MetroWest Bank Framingham MA NE BIF NASDAQ 10/10/86 5.563
MWFD Midwest Federal Financial Baraboo WI MW SAIF NASDAQ 07/08/92 19.750
NASB North American Savings Bank Grandview MO MW SAIF NASDAQ 09/27/85 44.000
NBN Northeast Bancorp Portland ME NE BIF AMSE 08/19/87 14.375
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 15.000
NHTB New Hampshire Thrift Bncshrs New London NH NE SAIF NASDAQ 05/22/86 15.250
NMSB NewMil Bancorp Inc. New Milford CT NE BIF NASDAQ 02/01/86 10.250
NSSB Norwich Financial Corp. Norwich CT NE BIF NASDAQ 11/14/86 22.625
NTMG Nutmeg Federal S&LA Danbury CT NE SAIF NASDAQ NA 8.250
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 14.750
NWSB Northwest Savings Bank, MHC Warren PA MA SAIF NASDAQ 11/07/94 15.250
NYB New York Bancorp Inc. Douglaston NY MA SAIF NYSE 01/28/88 34.750
OFCP Ottawa Financial Corp. Holland MI MW SAIF NASDAQ 08/19/94 22.500
OHSL OHSL Financial Corp. Cincinnati OH MW SAIF NASDAQ 02/10/93 25.250
PALM Palfed, Inc. Aiken SC SE SAIF NASDAQ 12/15/85 16.688
PBCI Pamrapo Bancorp Inc. Bayonne NJ MA SAIF NASDAQ 11/14/89 19.750
PBCT People's Bank, MHC Bridgeport CT NE BIF NASDAQ 07/06/88 26.500
PBIX Patriot Bank Corp. Pottstown PA MA SAIF NASDAQ 12/04/95 16.313
PBKB People's Bancshares Inc. South Easton MA NE BIF NASDAQ 10/23/86 15.125
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 19.750
PCCI Pacific Crest Capital Agoura Hills CA WE BIF NASDAQ NA 13.375
PEEK Peekskill Financial Corp. Peekskill NY MA SAIF NASDAQ 12/29/95 15.000
PERT Perpetual Bank, MHC Anderson SC SE SAIF NASDAQ 10/26/93 29.500
PFDC Peoples Bancorp Auburn IN MW SAIF NASDAQ 07/07/87 22.250
PFNC Progress Financial Corporation Blue Bell PA MA SAIF NASDAQ 07/18/83 9.500
PFSB PennFed Financial Services Inc West Orange NJ MA SAIF NASDAQ 07/15/94 27.375
PFSL Pocahontas FS&LA, MHC Pocahontas AR SE SAIF NASDAQ 04/05/94 20.750
PHBK Peoples Heritage Finl Group Portland ME NE BIF NASDAQ 12/04/86 35.750
PSBK Progressive Bank Inc. Fishkill NY MA BIF NASDAQ 08/01/84 29.625
PTRS Potters Financial Corp. East Liverpool OH MW SAIF NASDAQ 12/31/93 21.547
PULS Pulse Bancorp South River NJ MA SAIF NASDAQ 09/18/86 19.625
PVFC PVF Capital Corp. Bedford Heights OH MW SAIF NASDAQ 12/30/92 19.125
PVSA Parkvale Financial Corporation Monroeville PA MA SAIF NASDAQ 07/16/87 28.375
PWBC PennFirst Bancorp Inc. Ellwood City PA MA SAIF NASDAQ 06/13/90 15.000
QCBC Quaker City Bancorp Inc. Whittier CA WE SAIF NASDAQ 12/30/93 17.000
QCFB QCF Bancorp Inc. Virginia MN MW SAIF NASDAQ 04/03/95 20.500
QCSB Queens County Bancorp Inc. Flushing NY MA BIF NASDAQ 11/23/93 46.125
RARB Raritan Bancorp Inc. Raritan NJ MA BIF NASDAQ 03/01/87 30.000
RELY Reliance Bancorp Inc. Garden City NY MA SAIF NASDAQ 03/31/94 26.875
ROSE TR Financial Corp. Garden City NY MA BIF NASDAQ 06/29/93 23.500
RVSB Riverview Savings Bank, MHC Camas WA WE SAIF NASDAQ 10/26/93 22.000
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95 16.500
SFFC StateFed Financial Corporation Des Moines IA MW SAIF NASDAQ 01/05/94 19.125
SFIN Statewide Financial Corp. Jersey City NJ MA SAIF NASDAQ 10/02/95 17.125
SFSB SuburbFed Financial Corp. Flossmoor IL MW SAIF NASDAQ 03/04/92 24.500
SFSL Security First Corp. Mayfield Heights OH MW SAIF NASDAQ 01/22/88 21.375
SGVB SGV Bancorp Inc. West Covina CA WE SAIF NASDAQ 06/29/95 14.000
SISB SIS Bancorp Inc. Springfield MA NE BIF NASDAQ 02/08/95 29.625
SKAN Skaneateles Bancorp Inc. Skaneateles NY MA BIF NASDAQ 06/02/86 18.750
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO MW SAIF NASDAQ 04/13/94 17.625
SMFC Sho-Me Financial Corp. Mt. Vernon MO MW SAIF NASDAQ 07/01/94 40.250
SOPN First Savings Bancorp Inc. Southern Pines NC SE SAIF NASDAQ 01/06/94 24.000
4
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
SOSA Somerset Savings Bank Somerville MA NE BIF NASDAQ 07/09/86 2.656
SPBC St. Paul Bancorp Inc. Chicago IL MW SAIF NASDAQ 05/18/87 33.875
STFR St. Francis Capital Corp. Milwaukee WI MW SAIF NASDAQ 06/21/93 33.250
STSA Sterling Financial Corp. Spokane WA WE SAIF NASDAQ NA 19.000
SWBI Southwest Bancshares Hometown IL MW SAIF NASDAQ 06/24/92 20.500
SWCB Sandwich Co-operative Bank Sandwich MA NE BIF NASDAQ 07/25/86 31.000
TBK Tolland Bank Tolland CT NE BIF AMSE 12/19/86 19.125
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 15.750
THRD TF Financial Corporation Newtown PA MA SAIF NASDAQ 07/13/94 18.375
TPNZ Tappan Zee Financial Inc. Tarrytown NY MA SAIF NASDAQ 10/05/95 16.500
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 21.250
TSH Teche Holding Co. Franklin LA SW SAIF AMSE 04/19/95 18.688
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 19.000
UBMT United Financial Corp. Great Falls MT WE SAIF NASDAQ 09/23/86 19.500
WAYN Wayne Savings & Loan Co. MHC Wooster OH MW SAIF NASDAQ 06/25/93 17.000
WBST Webster Financial Corporation Waterbury CT NE SAIF NASDAQ 12/12/86 43.875
WCBI Westco Bancorp Westchester IL MW SAIF NASDAQ 06/26/92 24.250
WEFC Wells Financial Corp. Wells MN MW SAIF NASDAQ 04/11/95 14.250
WFCO Winton Financial Corp. Cincinnati OH MW SAIF NASDAQ 08/04/88 13.125
WFSL Washington Federal Inc. Seattle WA WE SAIF NASDAQ 11/17/82 27.688
WRNB Warren Bancorp Inc. Peabody MA NE BIF NASDAQ 07/09/86 18.000
WSB Washington Savings Bank, FSB Waldorf MD MA SAIF AMSE NA 5.250
WSFS WSFS Financial Corporation Wilmington DE MA BIF NASDAQ 11/26/86 13.625
WSTR WesterFed Financial Corp. Missoula MT WE SAIF NASDAQ 01/10/94 20.625
WVFC WVS Financial Corporation Pittsburgh PA MA SAIF NASDAQ 11/29/93 25.750
YFED York Financial Corp. York PA MA SAIF NASDAQ 02/01/84 19.500
Maximum 73.250
Minimum 2.656
Average 22.611
Median 19.875
5
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core
Market LTM Price/ Price/T Price/ Dividend Assets Assets T Assets EPS ROAA
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
AADV 126.03 16.1 139.6 150.8 12.3 1.03 1,021,439 8.8 8.2 2.42 0.86
ABBK 47.34 15.2 140.0 156.4 9.6 1.60 492,058 6.9 6.2 1.65 0.67
ABCL 159.20 17.4 130.3 132.0 12.1 2.18 1,313,141 9.3 9.2 1.72 0.74
ABCW 229.07 13.7 194.3 198.3 12.2 1.12 1,884,983 6.3 6.1 3.66 0.98
AFCB 157.57 14.8 150.2 151.1 14.9 1.97 1,054,997 9.8 9.7 1.65 1.07
AHM 4,740.57 18.6 247.4 293.1 9.7 1.87 48,697,126 4.9 4.3 2.54 0.65
ALBC 5.79 23.4 93.1 93.1 8.3 1.41 66,316 8.9 8.9 0.94 0.38
ALBK 509.03 16.2 158.6 182.9 14.6 1.51 3,496,331 9.2 8.1 2.46 1.01
ANBK 58.26 18.5 123.3 123.3 11.5 0.74 505,318 9.0 9.0 0.87 0.65
ANDB 151.24 11.3 154.9 154.9 12.5 2.32 1,209,604 8.1 8.1 2.59 1.12
ASBI 50.63 15.3 116.8 116.9 12.7 3.84 402,163 10.9 10.8 1.02 0.84
ASBP 20.66 20.3 113.0 113.0 18.9 3.33 109,414 15.7 15.7 0.59 0.86
ASFC 969.19 17.0 165.9 199.3 12.6 1.32 7,689,409 7.6 6.4 2.68 0.77
BANC 335.10 18.1 171.6 210.8 9.5 0.82 2,773,085 5.5 4.5 0.78 0.71
BDJI 13.14 18.2 109.1 109.1 12.2 - 107,716 11.2 11.2 1.03 0.65
BFD 105.46 20.3 117.8 122.0 11.2 1.58 941,007 8.9 8.6 0.87 0.65
BFSB 23.71 13.3 119.1 119.1 18.0 2.70 131,506 14.3 14.3 1.56 1.33
BKC 81.72 13.8 174.1 182.1 13.9 4.06 588,583 8.0 7.7 2.57 1.11
BKCT 65.18 14.5 151.7 151.7 15.8 3.45 413,729 10.4 10.4 1.76 1.21
BKUNA 82.44 18.2 131.3 163.4 5.9 - 1,453,152 6.8 6.0 0.53 0.62
BSBC 30.75 16.2 181.7 181.7 17.3 1.71 177,425 9.5 9.5 0.29 1.11
BVCC 345.33 18.0 179.7 189.0 11.3 1.20 3,044,610 6.3 6.0 1.48 0.63
CAFI 55.11 12.7 120.3 130.8 11.7 2.89 472,430 9.7 9.0 1.42 0.86
CAPS 31.45 15.0 152.7 152.7 13.2 1.44 237,915 8.7 8.7 1.11 0.92
CASB 38.01 21.0 174.7 174.7 10.8 - 352,321 6.2 6.2 0.88 0.58
CASH 42.76 10.8 99.6 112.6 11.6 2.38 370,177 11.6 10.4 1.40 0.97
CBCI 83.51 15.0 112.1 112.1 17.9 - 494,557 15.9 15.9 2.64 1.35
CBSA 142.85 12.6 148.6 176.0 5.0 1.67 2,852,767 3.4 2.9 2.29 0.41
CBSB 72.01 16.6 129.1 147.1 18.2 1.88 394,815 14.1 12.6 1.03 1.21
CEBK 35.62 16.6 107.0 120.6 11.0 1.77 324,297 10.3 9.2 1.09 0.66
CENF 188.66 12.3 163.3 163.7 8.3 1.00 2,263,399 5.1 5.1 2.66 0.71
CFB 807.45 13.7 197.5 221.9 11.7 0.75 6,901,835 5.9 5.3 2.74 0.91
CFFC 28.63 13.3 124.7 124.7 17.2 2.49 166,664 13.8 13.8 1.69 1.31
CFSB 119.50 16.0 188.7 188.7 14.4 2.58 834,252 7.6 7.6 1.45 1.00
CFTP 75.48 22.3 109.3 109.3 36.6 1.70 206,049 33.5 33.5 0.79 1.70
CFX 236.53 13.4 176.8 189.8 13.6 4.86 1,744,449 7.7 7.2 1.35 1.00
CIBI 12.82 13.6 114.2 114.2 13.2 1.98 97,446 11.5 11.5 0.99 0.99
CKFB 17.85 22.4 116.0 116.0 29.7 2.29 60,197 23.7 23.7 0.86 1.29
CMRN 44.40 16.8 99.0 99.0 22.7 1.67 197,693 23.0 23.0 1.00 1.38
CMSV 107.02 17.4 139.7 139.7 15.7 4.14 682,314 11.2 11.2 1.25 0.96
CNIT 73.03 15.8 145.5 159.1 10.3 2.25 706,797 7.1 6.5 2.82 0.70
COFI 2,363.27 14.3 248.4 267.0 16.8 1.96 14,040,397 6.8 6.3 3.58 1.23
CRZY 13.57 20.8 93.6 93.6 26.1 2.96 52,042 27.8 27.8 0.65 1.25
CSA 855.26 20.6 196.2 198.9 9.7 - 8,797,075 5.0 4.9 2.23 0.50
CTZN 323.53 15.3 174.0 195.3 11.0 0.85 2,937,269 6.3 5.7 2.45 0.79
CVAL 43.13 16.5 165.1 165.1 14.1 2.10 305,187 8.6 8.6 1.27 0.92
DFIN 46.67 23.6 101.8 101.8 20.5 1.67 227,400 20.2 20.2 0.61 0.89
DIBK 118.13 8.8 185.3 192.3 14.5 1.74 814,431 7.8 7.6 2.61 1.88
DME 1,999.93 14.4 189.8 191.5 10.8 - 18,464,786 5.7 5.7 1.32 0.72
DNFC 158.52 13.4 180.5 182.6 10.4 - 1,528,468 5.8 5.8 1.42 0.84
DSL 621.57 16.5 155.2 157.5 11.3 1.38 5,484,473 7.3 7.2 1.41 0.76
EBSI 81.37 15.5 140.3 140.3 12.2 3.36 666,166 8.7 8.7 1.15 0.80
EFBI 36.70 19.0 116.0 116.1 14.3 5.48 256,704 12.3 12.3 0.96 0.79
EGFC 140.25 13.0 134.2 178.3 9.3 2.99 1,512,036 6.9 5.3 2.36 0.79
EIRE 41.36 12.3 144.2 144.2 10.0 1.51 412,141 7.0 7.0 1.51 0.85
EMLD 71.18 14.7 161.1 163.9 12.1 1.71 588,634 7.5 7.4 0.96 0.89
EQSB 21.83 10.9 145.5 145.5 7.4 - 296,002 5.1 5.1 3.33 0.76
6
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core
Market LTM Price/ Price/T Price/ Dividend Assets Assets T Assets EPS ROAA
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
ESBK 13.60 22.4 95.3 99.5 6.1 3.33 222,618 6.3 6.1 0.86 0.28
FBBC 108.84 13.6 150.5 150.5 15.4 2.50 709,011 10.2 10.2 1.18 1.40
FBCI 53.05 15.6 107.1 107.4 10.9 1.68 486,010 10.2 10.2 1.22 0.75
FBHC 23.64 17.8 128.3 138.4 8.0 0.97 295,080 6.3 5.8 1.62 0.51
FBSI 22.86 13.6 101.0 101.2 14.5 1.00 160,048 14.4 14.3 1.47 1.12
FCME 12.39 1.9 92.3 92.3 8.2 - 151,143 8.9 8.9 4.71 4.17
FED 323.41 16.6 165.7 167.9 7.8 - 4,129,737 4.7 4.7 1.85 0.48
FESX 123.49 12.8 147.3 171.0 10.8 2.91 1,146,854 7.3 6.4 1.29 0.91
FFBA 312.60 17.6 162.7 165.0 20.7 2.33 1,509,514 12.7 12.6 1.07 1.24
FFBI 7.79 19.3 107.1 107.1 8.4 - 93,156 7.8 7.8 0.97 0.45
FFBS 35.82 18.7 135.2 135.2 27.8 2.17 128,676 19.4 19.4 1.23 1.49
FFBZ 28.68 17.1 217.8 218.0 15.0 1.32 191,686 7.7 7.7 1.07 1.00
FFCH 186.72 14.7 189.5 189.5 11.7 2.44 1,602,018 6.2 6.2 2.01 0.83
FFDB 20.53 13.2 116.9 128.0 11.6 2.99 176,496 10.0 9.2 1.27 0.93
FFES 79.12 12.2 129.4 129.4 8.1 2.02 974,693 6.3 6.3 2.44 0.69
FFFC 120.92 19.0 157.5 161.1 22.0 1.79 549,771 13.0 12.7 1.41 1.33
FFFD 50.62 14.3 104.5 104.5 25.7 1.64 203,497 24.6 24.6 1.07 1.97
FFFL 131.08 24.5 160.4 161.7 14.1 4.13 926,891 8.8 8.8 0.79 0.61
FFHH 53.40 19.0 109.9 109.9 14.7 2.87 367,312 11.8 11.8 0.92 0.82
FFHS 23.57 18.0 118.1 119.0 10.4 1.60 226,235 8.8 8.8 1.11 0.61
FFIC 160.74 24.0 123.8 123.8 19.8 1.21 811,189 16.0 16.0 0.83 0.86
FFKY 76.97 14.5 152.1 162.0 20.7 2.81 372,300 13.6 12.9 1.28 1.49
FFLC 66.64 20.8 128.6 128.6 18.6 1.68 358,538 14.5 14.5 1.37 1.01
FFOH 83.91 20.0 124.7 141.9 16.4 1.87 513,079 13.1 11.7 0.75 0.96
FFSL 11.13 15.1 98.1 98.1 10.3 2.24 109,230 10.5 10.5 0.74 0.76
FFSX 67.14 20.1 178.3 179.9 14.5 2.02 462,829 8.1 8.1 1.18 0.73
FFWC 18.12 10.9 114.3 114.3 11.4 2.77 158,441 10.0 10.0 2.39 1.10
FFWD 25.19 13.3 121.3 121.3 15.4 2.37 163,498 12.7 12.7 1.27 1.23
FFYF 108.24 16.3 132.7 132.7 18.7 2.71 598,667 14.1 14.1 1.59 1.26
FGHC 22.13 20.1 177.7 194.9 15.0 0.74 147,094 8.5 7.8 0.36 0.77
FIBC 29.63 11.8 115.1 115.7 11.2 2.32 269,197 9.7 9.7 1.46 0.95
FKFS 28.24 11.7 126.9 126.9 9.0 0.87 314,637 7.1 7.1 1.96 0.77
FLFC 168.01 15.1 183.2 204.8 13.5 1.84 1,248,033 7.3 6.6 1.44 0.91
FMCO 56.08 11.4 161.1 164.5 10.1 0.85 553,599 6.3 6.2 2.06 0.98
FMSB 46.55 12.6 163.5 163.5 10.9 1.16 426,292 6.7 6.7 1.37 0.98
FNGB 93.91 18.2 132.1 132.1 15.2 3.01 617,899 11.5 11.5 1.17 0.88
FOBC 49.71 15.4 123.0 129.2 14.8 2.76 346,214 11.6 11.1 1.36 0.98
FRC 214.84 16.8 132.8 132.9 9.8 - 2,183,453 7.4 7.4 1.28 0.58
FSBI 30.85 12.1 135.0 135.0 9.4 1.80 327,896 7.0 7.0 1.66 0.84
FSFC 44.43 14.3 129.8 129.8 13.3 2.37 334,751 10.2 10.2 0.71 0.90
FSLA 173.94 20.0 184.6 208.3 17.0 2.00 1,024,715 9.2 8.2 1.20 0.89
FSPG 52.48 10.9 156.8 159.6 10.3 2.07 508,243 6.6 6.5 1.78 0.99
FSTC 40.03 9.8 163.0 207.3 15.3 1.78 257,288 9.4 7.5 2.52 2.03
FTF 32.84 11.1 122.5 122.5 19.6 2.50 168,094 16.0 16.0 1.62 1.71
FTFC 200.77 14.9 206.6 220.4 13.1 2.18 1,530,237 6.4 6.0 1.48 0.86
FTSB 14.86 22.3 103.0 103.0 16.6 2.38 94,681 16.1 16.1 0.47 0.77
FWWB 226.16 20.3 141.0 153.2 22.4 1.30 1,007,633 14.8 13.7 1.06 1.17
GAF 151.22 21.5 126.8 128.1 23.8 2.11 670,342 17.3 17.1 0.88 1.19
GBCI 120.71 14.6 228.4 235.1 21.9 2.41 552,372 9.6 9.3 1.22 1.56
GDW 4,191.25 9.4 173.6 173.6 10.9 0.60 38,530,009 6.3 6.3 7.80 1.24
GFCO 29.45 15.3 111.7 113.4 10.5 2.64 280,813 9.6 9.4 1.68 0.68
GFSB 13.09 12.7 128.3 128.3 14.9 1.51 88,154 11.6 11.6 1.04 1.20
GLN 1,276.50 19.1 165.7 178.2 8.3 - 15,393,708 6.4 6.0 1.33 0.62
GPT 3,112.19 21.9 192.0 335.1 23.5 1.51 13,261,221 10.8 6.5 3.03 0.96
GSBC 138.22 14.3 231.3 231.3 20.8 2.35 679,153 9.0 9.0 1.19 1.54
GTFN 482.50 24.5 175.2 183.2 16.3 1.73 3,002,142 9.3 8.9 1.42 0.71
GUPB 15.28 22.6 112.6 112.6 18.4 2.11 86,911 16.3 16.3 0.84 0.93
7
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core
Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
HALL 31.20 13.6 109.1 109.1 7.6 - 409,287 7.0 7.0 1.59 0.59
HARB 202.19 16.0 222.7 231.4 18.3 3.44 1,104,924 8.2 7.9 2.54 1.21
HARL 36.33 12.1 171.6 171.6 10.9 1.82 332,558 6.4 6.4 1.82 0.98
HARS 238.45 23.1 155.0 179.6 12.3 2.73 1,943,327 7.9 6.9 0.92 0.59
HAVN 160.31 11.2 160.0 160.6 9.3 1.62 1,727,798 5.8 5.8 3.30 0.90
HBFW 54.10 18.4 118.3 118.3 16.5 0.97 327,789 14.0 14.0 1.12 0.89
HBNK 54.49 23.9 152.1 152.1 11.4 - 480,192 7.5 7.5 1.00 0.50
HBS 21.20 14.0 102.5 106.5 14.5 3.31 146,331 14.1 13.7 1.21 1.12
HFFB 30.37 20.3 98.2 98.2 28.1 2.67 108,187 26.4 26.4 0.74 1.35
HFFC 59.04 13.5 119.6 119.9 10.6 1.82 561,287 9.2 9.2 1.46 0.81
HFGI 39.90 16.3 161.8 161.8 7.7 0.98 515,360 4.8 4.8 0.75 0.48
HFNC 287.97 23.3 181.5 181.5 34.2 1.67 842,917 18.8 18.8 0.72 1.38
HFSA 12.57 17.6 95.2 95.2 12.2 3.28 103,354 12.8 12.8 0.83 0.81
HHFC 9.61 21.0 94.5 94.5 11.8 3.81 83,103 12.5 12.5 0.50 0.55
HIFS 25.91 11.5 131.7 131.7 12.6 2.01 205,667 9.6 9.6 1.73 1.17
HMCI 24.13 20.1 113.8 113.8 7.2 - 336,447 6.3 6.3 0.71 0.38
HMNF 96.87 19.7 122.9 122.9 17.5 - 553,021 14.2 14.2 1.17 0.91
HOMF 94.09 12.7 167.8 173.4 14.2 1.80 663,658 8.5 8.2 2.18 1.18
HPBC 37.30 12.1 182.3 182.3 19.7 3.95 189,204 10.8 10.8 1.68 1.70
HRBF 31.58 21.2 111.9 111.9 14.4 2.22 219,462 12.9 12.9 0.85 0.68
HRZB 119.31 15.8 152.0 152.0 23.2 2.16 515,341 15.2 15.2 1.02 1.52
HZFS 8.19 18.2 99.6 99.6 10.5 1.66 78,368 10.5 10.5 1.06 0.60
IFSB 11.52 13.9 67.2 76.7 4.4 2.44 262,753 6.5 5.8 0.65 0.33
INBI 72.70 17.0 117.8 117.8 21.8 3.57 333,846 18.5 18.5 0.79 1.27
IPSW 19.31 14.1 189.2 189.2 11.7 1.48 165,510 6.2 6.2 1.15 0.93
ISBF 160.45 21.0 133.2 157.1 17.3 1.72 938,968 12.2 10.5 1.11 0.92
ITLA 125.27 11.8 135.9 136.5 15.5 - 810,494 11.4 11.3 1.36 1.45
IWBK 288.66 15.7 243.1 248.8 16.3 1.67 1,771,523 6.7 6.6 2.30 1.11
JSBA 148.52 15.2 128.7 168.9 11.5 1.34 1,296,929 8.2 6.4 1.97 0.70
JSBF 431.69 17.8 127.1 127.1 28.2 3.19 1,530,902 22.2 22.2 2.47 1.68
KFBI 186.79 22.1 121.8 121.8 27.3 1.60 683,830 20.4 20.4 0.85 1.29
KNK 41.18 15.4 112.7 120.3 12.0 1.66 342,379 10.7 10.1 1.88 0.77
KSAV 16.91 14.3 121.4 121.5 16.8 2.35 100,754 13.8 13.8 1.79 1.21
KSBK 14.55 9.4 144.0 153.0 10.3 0.69 139,993 7.2 6.8 3.72 1.09
KYF 14.51 15.9 101.3 101.3 16.3 4.55 88,923 16.1 16.1 0.69 1.07
LARK 36.39 16.5 111.1 111.1 16.3 1.99 223,799 14.6 14.6 1.22 1.04
LARL 31.00 11.9 148.2 148.2 15.4 2.05 208,577 10.4 10.4 1.80 1.43
LFED 65.64 21.4 143.8 143.8 23.3 4.00 281,899 16.2 16.2 0.89 1.12
LIFB 232.63 18.6 153.2 158.0 16.5 2.03 1,407,861 10.8 10.5 1.27 0.86
LISB 875.25 21.8 167.1 168.7 15.1 1.66 5,814,296 9.0 8.9 1.66 0.73
LOGN 17.62 15.6 112.8 112.8 22.2 2.86 79,298 19.7 19.7 0.90 1.51
LSBI 19.73 24.0 107.5 107.5 10.5 1.55 188,027 9.1 9.1 0.87 0.42
LSBX 45.76 8.4 152.3 152.3 13.4 - 342,037 8.8 8.8 1.28 1.66
LVSB 74.25 18.4 162.0 202.6 15.4 0.78 481,646 9.5 7.8 1.75 0.95
MAFB 431.51 13.1 169.2 194.8 13.3 1.02 3,236,449 7.9 6.9 3.15 1.08
MARN 41.36 15.2 102.9 102.9 23.7 3.89 174,415 23.1 23.1 1.49 1.59
MASB 125.66 14.3 139.6 139.6 13.9 2.31 901,117 10.0 10.0 3.28 1.02
MBB 54.61 19.1 97.6 227.3 6.7 3.12 810,679 8.4 4.7 1.01 0.48
MBB 54.61 19.1 97.6 227.3 6.7 3.12 810,679 8.4 4.7 1.01 0.48
MBLF 31.58 18.8 111.6 111.6 15.1 1.67 209,783 13.5 13.5 1.28 0.85
MCBN 4.49 13.0 90.2 90.2 7.8 2.67 57,838 8.6 8.6 1.50 0.64
MCBS 53.85 13.8 141.3 141.3 14.5 1.46 371,169 10.0 10.0 1.99 1.17
MDBK 138.46 14.1 149.3 161.3 13.1 2.36 1,054,075 8.8 8.2 2.17 1.01
MERI 29.42 13.9 162.8 162.8 12.9 1.84 228,591 7.9 7.9 2.74 0.97
MFBC 34.26 19.8 100.8 100.8 14.6 1.62 234,290 14.5 14.5 1.00 0.85
MFFC 32.58 24.6 114.6 114.6 18.2 4.29 178,757 14.7 14.7 0.57 0.72
MFLR 16.03 14.6 136.3 138.7 12.9 3.33 124,688 9.4 9.3 1.23 0.93
8
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core
Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
MFSL 142.04 14.0 146.4 148.3 12.3 1.81 1,157,445 8.4 8.3 3.17 0.89
MIVI 11.97 17.2 94.1 94.1 17.2 1.09 69,755 18.3 18.3 0.85 1.01
MLBC 198.55 17.8 146.3 NA 10.1 2.10 1,959,847 6.9 NA 1.07 0.65
MSBF 13.84 13.9 110.3 110.3 18.3 2.55 75,630 16.6 16.6 1.58 1.49
MWBI 10.97 11.5 113.8 113.8 7.9 1.91 139,006 6.9 6.9 2.74 0.74
MWBX 77.56 11.4 190.5 190.5 14.0 2.16 554,921 7.3 7.3 0.49 1.37
MWFD 32.09 16.5 185.3 192.9 16.0 1.72 201,070 8.6 8.3 1.20 1.09
NASB 99.19 11.7 180.7 186.8 14.4 1.82 689,246 8.0 7.7 3.75 1.18
NBN 18.33 21.8 106.6 123.3 7.4 2.23 247,525 7.8 6.9 0.66 0.50
NEIB 26.44 13.9 100.9 100.9 15.3 2.13 172,874 15.2 15.2 1.08 1.22
NHTB 31.13 21.5 133.1 157.1 9.9 3.28 313,038 7.5 6.4 0.71 0.51
NMSB 39.85 18.0 126.1 126.1 12.6 2.34 317,013 10.0 10.0 0.57 0.80
NSSB 122.20 18.6 158.6 176.8 17.4 2.48 701,234 11.0 10.0 1.22 0.98
NTMG 5.98 24.3 112.2 112.2 6.4 - 93,645 6.2 6.2 0.34 0.38
NWEQ 12.37 13.9 104.0 104.0 13.0 3.25 95,097 11.4 11.4 1.06 0.99
NWSB 356.48 18.2 183.7 195.8 17.9 2.10 1,997,563 9.7 9.2 0.84 1.00
NYB 563.40 15.0 354.2 354.2 17.9 1.73 3,174,997 5.1 5.1 2.31 1.36
OFCP 110.71 19.1 149.3 186.6 13.2 1.78 858,934 8.8 7.2 1.18 0.73
OHSL 30.50 17.2 120.2 120.2 13.3 3.49 229,812 11.0 11.0 1.47 0.86
PALM 88.08 23.8 165.7 165.7 13.4 0.72 655,707 8.1 8.1 0.70 0.56
PBCI 56.15 14.7 120.2 121.2 15.4 5.06 367,360 12.8 12.7 1.34 1.19
PBCT 1,616.94 24.8 255.1 255.3 21.5 2.52 7,538,100 8.4 8.4 1.07 0.90
PBIX 68.94 20.7 128.5 128.5 11.7 2.15 594,055 8.1 8.1 0.79 0.63
PBKB 54.33 19.9 176.5 184.2 9.9 2.91 548,774 5.6 5.4 0.76 0.51
PCBC 15.97 15.2 109.4 109.4 20.0 2.03 79,714 18.3 18.3 1.30 1.03
PCCI 39.29 15.4 158.7 158.7 11.5 - 342,750 7.2 7.2 0.87 0.90
PEEK 48.05 20.3 102.9 102.9 26.3 2.40 182,594 25.6 25.6 0.74 1.38
PERT 44.39 18.9 148.9 148.9 18.1 4.75 245,671 12.1 12.1 1.56 1.15
PFDC 50.72 12.2 118.0 118.0 17.9 2.70 283,242 15.2 15.2 1.82 1.45
PFNC 36.23 17.6 172.1 196.3 9.1 0.84 400,366 5.2 4.6 0.54 0.55
PFSB 131.98 13.4 129.1 156.5 10.5 1.02 1,252,387 7.5 6.3 2.05 0.84
PFSL 33.80 13.9 142.0 142.0 9.1 4.34 373,262 6.4 6.4 1.49 0.67
PHBK 997.11 15.3 226.8 268.8 18.6 2.01 5,458,036 8.2 7.0 2.34 1.29
PSBK 113.31 12.0 154.5 174.5 12.9 2.30 877,667 8.4 7.5 2.46 1.07
PTRS 10.49 13.6 100.7 100.7 9.0 1.67 116,921 8.9 8.9 1.58 0.68
PULS 60.19 12.1 149.4 149.4 11.6 3.57 515,936 7.8 7.8 1.62 1.07
PVFC 44.43 7.7 177.6 177.6 12.5 - 356,251 7.0 7.0 2.48 1.38
PVSA 115.21 11.9 158.4 159.8 11.9 1.83 972,597 7.5 7.4 2.38 1.06
PWBC 58.67 13.5 117.5 128.8 8.3 2.40 706,237 7.1 6.5 1.11 0.64
QCBC 80.70 18.7 116.8 116.9 10.4 - 780,843 8.9 8.9 0.91 0.57
QCFB 29.24 11.5 108.0 108.0 19.5 - 149,637 18.1 18.1 1.79 1.66
QCSB 513.70 22.5 217.4 217.4 37.4 1.73 1,373,295 15.0 15.0 2.05 1.72
RARB 47.71 13.6 159.6 162.5 12.3 2.40 375,138 7.7 7.6 2.21 1.02
RELY 235.52 15.4 153.1 218.3 12.3 2.38 1,926,800 8.0 5.8 1.75 0.84
ROSE 411.68 15.2 184.0 184.0 12.2 2.21 3,404,326 6.2 6.2 1.55 0.86
RVSB 53.16 20.4 212.4 234.0 23.7 0.99 224,385 11.2 10.2 1.08 1.17
SFED 20.39 14.9 95.6 95.6 12.4 1.70 168,841 13.0 13.0 1.11 0.82
SFFC 14.99 14.2 100.7 100.7 17.7 2.09 85,282 17.6 17.6 1.35 1.29
SFIN 81.44 13.4 129.6 129.9 12.1 2.34 677,384 9.3 9.3 1.28 0.87
SFSB 30.89 15.5 115.4 115.9 7.6 1.31 407,800 6.6 6.5 1.58 0.54
SFSL 106.94 14.5 179.9 183.2 16.9 2.25 634,761 9.4 9.2 1.47 1.35
SGVB 32.79 23.7 112.8 114.9 8.2 - 399,776 7.3 7.2 0.59 0.37
SISB 166.40 8.9 162.5 162.5 12.0 1.62 1,403,745 7.2 7.2 3.32 1.45
SKAN 17.85 12.3 107.7 111.3 7.4 2.13 241,425 6.9 6.7 1.52 0.62
SMBC 28.87 17.3 111.2 111.2 17.4 2.84 165,688 15.7 15.7 1.02 1.01
SMFC 60.34 20.6 191.8 191.8 20.1 - 304,496 9.5 9.5 1.95 1.08
SOPN 88.73 21.2 133.0 133.0 32.7 3.33 271,121 24.6 24.6 1.13 1.68
9
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Tangible
Current Price/ Current Current Current Total Equity/ Equity/ Core Core
Market LTM Price/ Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA
Value Core EPS Book V Book V Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
SOSA 44.23 14.0 143.6 143.6 8.5 - 522,150 5.9 5.9 0.19 0.59
SPBC 773.71 18.4 197.4 198.0 17.3 1.42 4,484,882 8.7 8.7 1.84 1.00
STFR 179.09 18.6 139.2 158.2 11.3 1.44 1,578,969 8.1 7.2 1.79 0.70
STSA 105.32 23.5 173.0 204.1 6.8 - 1,557,216 5.6 5.0 0.81 0.43
SWBI 54.10 15.1 135.0 135.0 14.6 3.71 371,563 10.8 10.8 1.36 1.04
SWCB 59.08 14.0 150.9 158.2 12.4 3.87 475,245 8.2 7.9 2.22 0.96
TBK 22.42 13.8 140.3 144.8 9.5 1.05 237,311 6.7 6.5 1.39 0.75
THR 12.97 16.9 103.4 103.8 14.2 2.29 91,165 13.8 13.7 0.93 0.83
THRD 75.11 16.7 99.3 113.9 11.7 2.18 644,368 10.8 9.6 1.10 0.75
TPNZ 25.31 20.1 119.2 119.2 20.8 1.21 121,841 17.4 17.4 0.82 1.01
TRIC 12.94 16.6 98.2 98.2 15.1 2.82 85,975 15.3 15.3 1.28 0.99
TSH 64.24 16.4 122.7 122.7 16.3 2.68 393,556 13.3 13.3 1.14 1.00
TWIN 16.22 19.0 120.1 120.1 15.5 3.37 104,488 12.9 12.9 1.00 0.79
UBMT 23.85 16.8 97.8 97.8 22.1 4.92 107,723 22.7 22.7 1.16 1.34
WAYN 36.30 23.6 167.5 167.5 15.3 3.61 250,057 9.1 9.1 0.72 0.65
WBST 525.69 14.5 185.0 219.8 9.4 1.82 5,583,619 5.1 4.3 3.03 0.70
WCBI 61.94 15.5 128.4 128.4 20.0 2.47 309,921 15.6 15.6 1.57 1.40
WEFC 28.06 14.0 100.4 100.4 14.3 - 201,886 14.2 14.2 1.02 1.01
WFCO 26.07 10.8 118.7 121.4 8.5 3.51 307,174 7.2 7.0 1.22 0.88
WFSL 1,313.99 13.1 196.4 218.0 22.7 3.18 5,788,992 11.6 10.5 2.11 1.83
WRNB 67.44 11.5 182.2 182.2 18.4 2.89 361,273 10.1 10.1 1.57 1.74
WSB 22.16 12.5 103.8 103.8 8.6 1.91 256,632 8.3 8.3 0.42 0.74
WSFS 170.72 10.5 225.2 227.5 11.6 - 1,478,119 5.1 5.1 1.30 1.33
WSTR 114.49 18.4 111.9 141.6 12.3 2.04 932,440 11.0 8.9 1.12 0.84
WVFC 44.99 12.8 125.6 125.6 16.0 3.11 279,894 12.7 12.7 2.01 1.32
YFED 135.94 16.1 139.4 139.4 11.8 3.08 1,157,356 8.4 8.4 1.21 0.76
Maximum 4,740.57 24.8 354.2 354.2 37.4 5.48 48,697,126 33.5 33.5 7.80 4.17
Minimum 4.49 1.9 67.2 76.7 4.4 - 52,042 3.4 2.9 0.19 0.28
Average 189.54 16.2 142.8 150.2 14.4 1.98 1,448,618 10.6 10.3 1.50 0.98
Median 54.61 15.6 135.1 142.0 13.3 1.98 404,982 9.2 8.9 1.28 0.92
10
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
AADV 9.33 N 06/20/97 0.56 14.34 0.68 0.93 10.41
ABBK 10.06 N 06/20/97 0.24 13.59 0.46 0.76 11.02
ABCL 8.51 N 06/20/97 0.18 16.24 0.46 0.75 8.21
ABCW 15.31 N 06/20/97 0.75 13.59 0.92 0.96 14.65
AFCB 10.83 N 06/20/97 0.46 13.54 0.45 1.12 11.50
AHM 12.37 N 06/20/97 2.06 16.14 0.73 0.71 14.61
ALBC 3.90 N 06/20/97 NA 12.22 0.45 0.69 7.68
ALBK 10.83 N 06/20/97 0.74 14.86 0.67 1.07 11.62
ANBK 6.68 N 06/20/97 NA 14.40 0.28 0.79 8.70
ANDB 14.30 N 06/20/97 1.14 11.84 0.62 1.06 13.29
ASBI 7.59 N 06/20/97 0.38 15.63 0.25 0.80 7.32
ASBP 4.31 N 06/20/97 1.56 21.43 0.14 0.85 5.43
ASFC 9.62 N 06/20/97 0.45 16.07 0.71 0.82 10.35
BANC 11.07 N 06/20/97 0.75 18.59 0.19 0.66 11.55
BDJI 5.35 N 06/20/97 0.21 23.44 0.20 0.46 4.01
BFD 5.81 N 06/20/97 0.63 13.82 0.32 0.81 8.36
BFSB 9.05 N 06/20/97 0.00 13.65 0.38 1.26 8.79
BKC 12.89 N 06/20/97 1.97 11.83 0.75 1.23 14.72
BKCT 11.53 N 06/20/97 1.11 13.28 0.48 1.25 12.21
BKUNA 7.72 N 06/20/97 0.70 20.05 0.12 0.55 7.42
BSBC 12.32 N 06/20/97 1.94 14.65 0.08 1.20 12.92
BVCC 10.22 N 06/20/97 0.76 19.02 0.35 0.62 9.73
CAFI 9.55 N 06/20/97 0.36 12.50 0.36 0.92 9.52
CAPS 10.27 N 06/20/97 0.16 14.33 0.29 0.93 10.89
CASB 9.43 N 06/20/97 0.59 23.13 0.20 0.54 8.80
CASH 8.40 N 06/20/97 0.79 13.50 0.28 0.90 7.68
CBCI 8.36 N 06/20/97 1.40 13.91 0.71 1.38 8.72
CBSA 12.27 N 06/20/97 0.57 11.23 0.64 0.45 13.53
CBSB 7.51 N 06/20/97 0.51 16.41 0.26 1.15 7.85
CEBK 6.66 N 06/20/97 1.67 10.30 0.44 1.06 10.59
CENF 14.04 N 06/20/97 1.40 17.06 0.48 0.51 9.88
CFB 15.29 N 06/20/97 1.01 12.67 0.74 0.95 16.14
CFFC 9.44 N 06/20/97 0.35 12.23 0.46 1.41 10.21
CFSB 12.72 N 06/20/97 0.09 13.84 0.42 1.08 14.22
CFTP 5.11 N 06/20/97 0.35 22.03 0.20 1.70 5.05
CFX 11.48 N 06/20/97 0.61 13.73 0.33 1.09 12.92
CIBI 8.18 N 06/20/97 0.72 12.50 0.27 1.01 8.86
CKFB 5.05 N 06/20/97 0.89 22.92 0.21 1.21 4.96
CMRN 5.52 N 06/20/97 0.28 18.21 0.23 1.20 5.11
CMSV 8.19 N 06/20/97 0.57 20.14 0.27 0.81 7.05
CNIT 9.75 N 06/20/97 0.61 16.60 0.67 0.65 9.17
COFI 18.12 N 06/20/97 0.26 13.71 0.93 1.26 18.65
CRZY 4.20 N 06/20/97 0.23 19.85 0.17 1.29 4.60
CSA 9.99 N 06/20/97 1.34 18.25 0.63 0.56 11.43
CTZN 12.14 N 06/20/97 0.45 13.61 0.69 0.86 13.34
CVAL 10.26 N 06/20/97 0.47 15.44 0.34 0.96 10.98
DFIN 3.85 N 06/20/97 0.20 27.64 0.13 0.81 3.48
DIBK 22.83 N 06/20/97 0.44 8.10 0.71 1.94 23.80
DME 13.84 N 06/20/97 2.36 15.83 0.30 0.66 12.14
DNFC 14.62 N 06/20/97 0.37 12.54 0.38 0.88 14.98
DSL 9.62 N 06/20/97 1.11 12.92 0.45 0.92 12.22
EBSI 8.97 N 06/20/97 0.88 15.96 0.28 0.77 8.71
EFBI 5.69 N 06/20/97 0.01 17.55 0.26 0.83 6.43
EGFC 10.87 N 06/20/97 1.21 12.81 0.60 0.78 10.75
EIRE 12.61 N 06/20/97 0.62 10.76 0.43 0.97 14.08
EMLD 11.25 N 06/20/97 0.16 12.56 0.28 0.98 12.85
EQSB 14.87 N 06/20/97 0.68 9.06 1.00 0.88 17.51
11
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
ESBK 4.32 N 06/20/97 0.82 20.92 0.23 0.29 4.53
FBBC 8.44 N 06/20/97 0.09 14.29 0.28 1.14 9.70
FBCI 6.93 N 06/20/97 0.70 13.19 0.36 0.82 7.90
FBHC 7.64 N 06/20/97 NA 21.14 0.34 0.41 6.41
FBSI 7.33 N 06/20/97 0.08 12.82 0.39 1.14 7.96
FCME 67.90 N 06/20/97 1.62 17.55 0.13 0.49 5.53
FED 10.34 N 06/20/97 1.74 15.95 0.48 0.50 10.61
FESX 12.11 N 06/20/97 0.62 17.19 0.24 0.67 9.01
FFBA 8.26 N 06/20/97 0.19 16.27 0.29 1.27 9.48
FFBI 5.63 N 06/20/97 0.27 18.75 0.25 0.43 5.54
FFBS 7.62 N 06/20/97 0.03 16.91 0.34 1.62 8.37
FFBZ 13.08 N 06/20/97 0.52 18.25 0.25 0.91 11.86
FFCH 13.37 N 06/20/97 1.77 13.41 0.55 0.88 14.32
FFDB 9.10 N 06/20/97 0.77 10.74 0.39 1.11 11.36
FFES 11.18 N 06/20/97 0.41 13.28 0.56 0.64 10.00
FFFC 9.00 N 06/20/97 0.10 17.15 0.39 1.38 10.17
FFFD 7.28 N 06/20/97 0.22 14.12 0.27 1.74 7.15
FFFL 6.43 N 06/20/97 0.30 26.91 0.18 0.55 6.02
FFHH 6.13 N 06/20/97 0.10 17.44 0.25 0.79 6.51
FFHS 6.64 N 06/20/97 0.50 17.86 0.28 0.60 6.70
FFIC 4.92 N 06/20/97 0.27 19.88 0.25 0.97 5.69
FFKY 10.72 N 06/20/97 0.11 12.50 0.37 1.65 12.16
FFLC 6.25 N 06/20/97 0.27 17.81 0.40 1.10 7.35
FFOH 6.07 N 06/20/97 0.18 18.75 0.20 0.89 6.69
FFSL 6.54 N 06/20/97 0.46 17.48 0.16 0.61 5.62
FFSX 8.87 N 06/20/97 0.12 19.79 0.30 0.73 8.97
FFWC 10.78 N 06/20/97 0.22 10.48 0.62 1.12 10.98
FFWD 9.24 N 06/20/97 0.02 11.72 0.36 1.37 10.72
FFYF 7.53 N 06/20/97 0.72 13.76 0.47 1.28 9.07
FGHC 9.28 N 06/20/97 1.35 45.31 0.04 0.35 4.16
FIBC 9.46 N 06/20/97 2.77 9.38 0.46 1.15 11.60
FKFS 10.01 N 06/20/97 2.45 11.06 0.52 0.77 10.73
FLFC 12.24 N 06/20/97 0.75 15.54 0.35 0.91 11.92
FMCO 14.96 N 06/20/97 1.07 10.68 0.55 1.00 15.69
FMSB 14.75 N 06/20/97 NA 12.32 0.35 0.94 14.17
FNGB 7.48 N 06/20/97 0.13 17.71 0.30 0.87 7.65
FOBC 8.25 N 06/20/97 0.13 15.91 0.33 0.96 8.23
FRC 9.96 N 06/20/97 1.25 17.34 0.31 0.61 9.32
FSBI 12.04 N 06/20/97 0.35 12.82 0.39 0.80 11.47
FSFC 7.30 N 06/20/97 0.11 12.05 0.21 1.08 10.56
FSLA 9.56 N 06/20/97 0.57 17.65 0.34 0.98 10.65
FSPG 15.16 N 06/20/97 0.79 10.53 0.46 1.00 15.12
FSTC 19.20 N 06/20/97 1.26 11.05 0.56 1.51 16.44
FTF 9.71 N 06/20/97 0.13 10.71 0.42 1.70 10.61
FTFC 13.11 N 06/20/97 0.17 16.67 0.33 0.87 13.73
FTSB 3.83 N 06/20/97 2.02 17.50 0.15 0.97 5.58
FWWB 7.04 N 06/20/97 0.31 17.92 0.30 1.17 7.76
GAF 5.64 N 06/20/97 0.12 20.58 0.23 1.12 6.00
GBCI 16.51 N 06/20/97 0.15 15.30 0.29 1.47 15.17
GDW 19.61 N 06/20/97 1.44 12.72 1.44 0.87 13.82
GFCO 7.14 N 06/20/97 0.16 13.41 0.48 0.79 8.23
GFSB 10.24 N 06/20/97 1.54 11.83 0.28 1.27 11.06
GLN 9.70 N 06/20/97 1.66 15.10 0.42 0.74 11.57
GPT 8.96 N 06/20/97 2.84 20.49 0.81 1.04 9.35
GSBC 15.89 N 06/20/97 1.83 12.50 0.34 1.66 18.62
GTFN 7.13 N 06/20/97 0.38 21.72 0.40 0.80 8.13
GUPB 4.89 N 06/20/97 NA 22.62 0.21 0.81 4.74
12
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
HALL 8.28 N 06/20/97 0.01 11.75 0.46 0.66 9.37
HARB 14.59 N 06/20/97 0.47 15.21 0.67 1.23 14.96
HARL 15.27 N 06/20/97 0.11 11.00 0.50 1.04 16.42
HARS 6.48 N 06/20/97 0.67 17.14 0.31 0.78 9.03
HAVN 14.67 N 06/20/97 0.78 12.50 0.74 0.82 14.18
HBFW 6.04 N 06/20/97 0.00 15.63 0.33 0.98 7.03
HBNK 6.70 N 06/20/97 3.23 23.88 0.25 0.47 6.51
HBS 7.43 N 06/20/97 2.09 16.94 0.25 0.89 6.02
HFFB 4.90 N 06/20/97 0.00 19.74 0.19 1.32 4.96
HFFC 8.80 N 06/20/97 0.40 12.99 0.38 0.85 9.18
HFGI 10.32 N 06/20/97 0.23 21.88 0.14 0.35 7.28
HFNC 4.71 N 06/20/97 0.99 24.63 0.17 1.15 4.36
HFSA 5.14 N 06/20/97 0.36 16.62 0.22 0.74 5.38
HHFC 3.91 N 06/20/97 0.15 14.58 0.18 0.78 6.27
HIFS 11.92 N 06/20/97 0.55 10.14 0.49 1.25 12.95
HMCI 6.13 N 06/20/97 3.25 19.79 0.18 0.40 6.44
HMNF 5.93 N 06/20/97 0.08 18.55 0.31 0.87 5.96
HOMF 14.20 N 06/20/97 0.43 12.39 0.56 1.22 14.54
HPBC 15.83 N 06/20/97 0.04 12.35 0.41 1.65 15.23
HRBF 5.10 N 06/20/97 0.13 18.75 0.24 0.72 5.62
HRZB 9.68 N 06/20/97 0.00 14.40 0.28 1.59 10.36
HZFS 5.41 N 06/20/97 1.02 13.75 0.35 0.76 7.11
IFSB 4.92 N 06/20/97 NA 11.25 0.20 0.39 5.96
INBI 6.69 N 06/20/97 0.18 14.00 0.24 1.48 7.91
IPSW 15.41 N 06/20/97 1.94 12.31 0.33 1.04 16.85
ISBF 6.15 N 06/20/97 NA 20.04 0.29 0.77 6.29
ITLA 12.48 N 06/20/97 1.78 11.11 0.36 1.42 12.81
IWBK 16.43 N 06/20/97 0.69 15.25 0.59 1.09 16.41
JSBA 9.29 N 06/20/97 0.52 12.88 0.58 0.85 10.53
JSBF 7.73 N 06/20/97 1.00 17.41 0.63 1.69 7.65
KFBI 5.42 N 06/20/97 0.10 17.36 0.27 1.48 6.99
KNK 7.65 N 06/20/97 0.57 14.22 0.51 0.88 8.37
KSAV 8.44 N 06/20/97 0.42 14.17 0.45 1.24 9.06
KSBK 15.50 N 06/20/97 NA 9.83 0.89 1.01 13.96
KYF 5.23 N 06/20/97 0.00 13.75 0.20 1.17 7.02
LARK 6.69 N 06/20/97 0.11 16.77 0.30 0.97 6.58
LARL 13.48 N 06/20/97 0.51 11.68 0.46 1.41 13.36
LFED 6.93 N 06/20/97 0.02 19.00 0.25 1.23 7.61
LIFB 7.73 N 06/20/97 0.49 20.37 0.29 0.79 7.30
LISB 7.57 N 06/20/97 1.04 20.07 0.45 0.73 8.10
LOGN 6.80 N 06/20/97 0.45 14.58 0.24 1.49 7.56
LSBI 4.44 N 06/20/97 1.34 14.50 0.36 0.68 7.38
LSBX 20.48 N 06/20/97 0.36 9.27 0.29 1.51 17.71
LVSB 9.52 N 06/20/97 NA 14.66 0.55 1.14 11.56
MAFB 14.28 N 06/20/97 0.44 12.17 0.85 1.14 14.54
MARN 6.87 N 06/20/97 0.76 11.78 0.48 2.06 9.01
MASB 10.08 N 06/20/97 0.19 14.61 0.80 0.99 9.41
MBB 5.76 N 06/20/97 0.70 19.25 0.25 0.49 5.53
MBB 5.76 N 06/20/97 0.70 19.25 0.25 0.49 5.53
MBLF 6.32 N 06/20/97 0.25 20.00 0.30 0.77 5.77
MCBN 7.05 N 06/20/97 0.40 9.95 0.49 0.80 8.48
MCBS 10.54 N 06/20/97 0.19 13.75 0.50 1.07 10.33
MDBK 11.38 N 06/20/97 0.45 13.62 0.56 1.01 11.38
MERI 12.70 N 06/20/97 0.25 11.31 0.84 1.20 15.23
MFBC 5.10 N 06/20/97 0.00 16.46 0.30 0.90 6.09
MFFC 4.14 N 06/20/97 0.17 26.92 0.13 0.62 4.16
MFLR 9.66 N 06/20/97 1.02 12.16 0.37 1.08 11.33
13
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
MFSL 10.76 N 06/20/97 NA 15.58 0.71 0.81 9.61
MIVI 5.54 N 06/20/97 0.21 17.41 0.21 1.01 5.86
MLBC 8.57 N 06/20/97 NA 23.83 0.20 0.48 6.42
MSBF 7.55 N 06/20/97 0.15 13.75 0.40 1.41 7.83
MWBI 10.69 N 06/20/97 0.82 11.93 0.66 0.72 10.23
MWBX 17.58 N 06/20/97 0.78 11.59 0.12 1.32 17.72
MWFD 12.42 N 06/20/97 0.14 15.43 0.32 1.11 12.90
NASB 16.39 N 06/20/97 3.34 10.68 1.03 1.30 17.21
NBN 6.24 N 06/20/97 1.37 13.82 0.26 0.66 8.48
NEIB 7.06 N 06/20/97 0.49 12.50 0.30 1.15 7.49
NHTB 6.82 N 06/20/97 0.74 13.15 0.29 0.89 11.96
NMSB 7.51 N 06/20/97 1.27 17.08 0.15 0.82 7.82
NSSB 9.14 N 06/20/97 1.00 16.16 0.35 1.17 10.33
NTMG 6.31 N 06/20/97 1.11 18.75 0.11 0.49 7.99
NWEQ 7.91 N 06/20/97 NA 13.17 0.28 0.92 7.76
NWSB 9.92 N 06/20/97 0.84 19.06 0.20 0.95 9.66
NYB 25.36 N 06/20/97 1.14 14.01 0.62 1.36 26.10
OFCP 7.63 N 06/20/97 0.18 17.05 0.33 0.78 8.74
OHSL 7.28 N 06/20/97 0.01 15.03 0.42 0.94 8.32
PALM 6.94 N 06/20/97 2.52 18.14 0.23 0.75 9.43
PBCI 7.86 N 06/20/97 2.28 12.34 0.40 1.37 9.32
PBCT 11.01 N 06/20/97 0.91 23.66 0.28 0.87 10.76
PBIX 5.80 N 06/20/97 0.13 21.46 0.19 0.52 6.06
PBKB 8.94 N 06/20/97 0.88 18.91 0.20 0.54 8.99
PCBC 5.45 N 06/20/97 0.05 15.93 0.31 1.18 6.34
PCCI 11.08 N 06/20/97 1.23 12.38 0.27 1.01 13.23
PEEK 4.78 N 06/20/97 0.74 22.06 0.17 1.15 4.43
PERT 9.73 N 06/20/97 NA 15.69 0.47 1.20 9.46
PFDC 9.42 N 06/20/97 0.40 12.36 0.45 1.46 9.59
PFNC 10.45 N 06/20/97 1.36 19.79 0.12 0.47 9.15
PFSB 10.45 N 06/20/97 0.69 12.44 0.55 0.85 11.30
PFSL 11.02 N 06/20/97 0.22 13.30 0.39 0.69 10.90
PHBK 15.68 N 06/20/97 0.83 14.90 0.60 1.26 15.32
PSBK 13.23 N 06/20/97 0.82 13.72 0.54 0.94 11.30
PTRS 7.54 N 06/20/97 0.83 6.12 0.88 1.53 16.55
PULS 12.54 N 06/20/97 0.59 10.90 0.45 1.11 14.26
PVFC 20.48 N 06/20/97 0.90 9.76 0.49 1.39 20.03
PVSA 14.68 N 06/20/97 0.24 11.63 0.61 1.06 14.76
PWBC 8.73 N 06/20/97 0.58 12.50 0.30 0.67 9.11
QCBC 6.21 N 06/20/97 1.49 15.18 0.28 0.67 7.48
QCFB 8.76 N 06/20/97 NA 11.39 0.45 1.55 8.53
QCSB 11.02 N 06/20/97 0.61 17.47 0.66 2.12 14.19
RARB 13.32 N 06/20/97 0.46 12.93 0.58 1.06 13.56
RELY 10.00 N 06/20/97 0.73 14.61 0.46 0.86 10.47
ROSE 13.75 N 06/20/97 0.38 14.69 0.40 0.85 13.69
RVSB 10.66 N 06/20/97 0.10 18.33 0.30 1.28 11.56
SFED 6.26 N 06/20/97 0.68 21.71 0.19 0.54 4.19
SFFC 6.99 N 06/20/97 0.70 13.66 0.35 1.27 7.18
SFIN 8.80 N 06/20/97 0.41 13.38 0.32 0.82 8.57
SFSB 8.08 N 06/20/97 0.25 13.92 0.44 0.57 8.69
SFSL 13.81 N 06/20/97 0.26 13.70 0.39 1.38 14.86
SGVB 4.26 N 06/20/97 0.61 25.00 0.14 0.31 3.97
SISB 19.94 N 06/20/97 0.36 13.72 0.54 0.87 11.85
SKAN 9.13 N 06/20/97 1.52 12.02 0.39 0.62 9.00
SMBC 6.29 N 06/20/97 1.10 17.63 0.25 0.96 6.06
SMFC 10.28 N 06/20/97 0.08 16.23 0.62 1.29 13.07
SOPN 6.59 N 06/20/97 0.12 20.69 0.29 1.73 6.96
14
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
SOSA 10.32 N 06/20/97 6.50 11.07 0.06 0.76 12.96
SPBC 11.18 N 06/20/97 0.36 16.61 0.51 1.10 12.36
STFR 7.59 N 06/20/97 0.26 16.30 0.51 0.74 8.48
STSA 7.62 N 06/20/97 0.43 16.38 0.29 0.57 10.08
SWBI 9.52 N 06/20/97 0.18 14.24 0.36 1.04 9.81
SWCB 11.82 N 06/20/97 1.08 14.90 0.52 0.88 10.78
TBK 11.53 N 06/20/97 2.30 12.92 0.37 0.79 11.40
THR 5.71 N 06/20/97 1.21 17.90 0.22 0.77 5.49
THRD 6.23 N 06/20/97 0.33 16.41 0.28 0.69 6.26
TPNZ 5.46 N 06/20/97 NA 22.92 0.18 0.88 4.91
TRIC 6.66 N 06/20/97 0.05 14.36 0.37 1.04 6.74
TSH 6.93 N 06/20/97 0.27 15.07 0.31 0.99 7.48
TWIN 6.08 N 06/20/97 0.08 19.79 0.24 0.76 5.93
UBMT 5.74 N 06/20/97 NA 16.25 0.30 1.39 5.81
WAYN 6.91 N 06/20/97 0.69 25.00 0.17 0.62 6.79
WBST 12.75 N 06/20/97 0.94 15.23 0.72 0.66 12.18
WCBI 9.01 N 06/20/97 0.84 15.95 0.38 1.37 8.79
WEFC 7.11 N 06/20/97 0.21 12.28 0.29 1.10 7.77
WFCO 12.04 N 06/20/97 NA 8.63 0.38 1.01 13.97
WFSL 15.76 N 06/20/97 0.90 12.59 0.55 1.82 15.72
WRNB 18.61 N 06/20/97 1.32 12.86 0.35 1.57 15.73
WSB 8.91 N 06/20/97 NA 26.25 0.05 0.38 4.53
WSFS 22.77 N 06/20/97 2.09 10.64 0.32 1.15 21.25
WSTR 6.16 N 06/20/97 0.09 19.83 0.26 0.73 5.69
WVFC 10.14 N 06/20/97 0.31 12.38 0.52 1.33 10.31
YFED 9.30 N 06/20/97 1.43 13.18 0.37 0.91 11.15
Maximum 67.90 6.50 45.31 1.44 2.12 26.10
Minimum 3.83 - 6.12 0.04 0.29 3.48
Average 9.83 0.73 15.61 0.39 0.98 9.97
Median 9.03 0.52 14.66 0.35 0.94 9.36
15
EXHIBIT VI
FERGUSON & COMPANY
- ------------------
Exhibit VI - Comparative Group Selection
To search for a comparative group for Lexington, we selected all thrifts from
the entire U.S. with assets under $75 million that have sufficient trading
volume to produce meaningful market information. All of these thrifts are listed
on either AMEX, NYSE, or Nasdaq.
We found 25 thrifts in the asset size described above. We eliminated 13 and
retained a group of 12. Normally, we consider 10 to 12 as the desired sample
size.
We eliminated thrifts for the following reasons: 1) BIF insured; 2) Less than a
full quarter as a reporting stock; 3) Inordinately high PE ratio; 4) Merger
agreement has been executed; 5) Nonperforming assets of 1.50% or more of total
assets; 6) Loans less than 50% of total assets; and 7) Loans serviced more than
40% of assets. After eliminating thrifts for the reasons listed above, we still
had 15 remaining. To reduce the group to 12, we eliminated the three most recent
conversions from the remaining 15.
The group of 25 from which the comparative group was selected is listed on
Exhibit VI.1 and the selected comparative group is listed on Exhibit VI.2. On
Exhibit VI.1, we have highlighted the cells that indicate which ones were not
selected and why. Set forth below is a legend for the column summarizing reasons
individual thrifts were not selected.
A BIF insured.
B The three most recently completed conversions after eliminating others for
operational reasons.
C Albion Bancorp, with a PE of 151.0 coupled with a PB of 78.6%, both of which
are well out of the normal range.
D Less than one full quarter as a reporting stock.
E Announced acquisition target.
F Non-performing assets of 1.50% or more of total assets.
G Loans are less than 50% of assets.
H Loans serviced exceeds 40% of assets.
1
FERGUSON & COMPANY Exhibit VI.1 - Comparatives Selection
- ------------------
Deposit Current Current Price/
Insurance Stock Market LTM
Agency Price Value Core EPS
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M) (x)
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 18.125 4.53 41.2
ATSB AmTrust Capital Corp. Peru IN MW SAIF NASDAQ 03/28/95 12.250 6.51 47.1
CKFB CKF Bancorp, Inc. Danville KY MW SAIF NASDAQ 01/04/95 18.000 16.69 22.0
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 13.750 14.55 NA
CSBF CSB Financial Group, Inc. Centralia IL MW SAIF NASDAQ 10/09/95 11.063 10.42 31.6
FLKY First Lancaster Bancshares Lancaster KY MW SAIF NASDAQ 07/01/96 15.750 15.10 NA
GLBK Glendale Co-Operative Bank Everett MA NE BIF NASDAQ 01/10/94 26.000 6.43 24.3
GWBC Gateway Bancorp, Inc. Catlettsburg KY MW SAIF NASDAQ 01/18/95 14.500 15.60 21.3
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ 02/08/95 21.000 6.54 NM
HCFC Home City Financial Corp. Springfield OH MW SAIF NASDAQ 12/30/96 14.000 13.33 NA
HWEN Home Financial Bancorp Spencer IN MW SAIF NASDAQ 07/02/96 15.375 7.78 NA
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 17.750 7.55 32.3
JOAC Joachim Bancorp, Inc. De Soto MO MW SAIF NASDAQ 12/28/95 14.625 11.12 37.5
LONF London Financial Corporation London OH MW SAIF NASDAQ 04/01/96 15.750 8.33 NA
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 15.500 19.61 NA
MBSP Mitchell Bancorp, Inc. Spruce Pine NC SE SAIF NASDAQ 07/12/96 16.000 15.68 NA
MCBN Mid-Coast Bancorp, Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 19.000 4.37 12.7
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 15.125 12.93 18.2
MSBF MSB Financial, Inc. Marshall MI MW SAIF NASDAQ 02/06/95 21.500 13.82 13.7
NSLB NS&L Bancorp, Inc. Neosho MO MW SAIF NASDAQ 06/08/95 16.000 11.78 30.8
PWBK Pennwood Bancorp, Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96 14.000 8.54 NA
RELI Reliance Bancshares, Inc. Milwaukee WI MW SAIF NASDAQ 04/19/96 7.250 18.33 NA
SCBS Southern Community Bancshares Cullman AL SE SAIF NASDAQ 12/23/96 13.500 15.35 NA
SCCB S. Carolina Community Bancshrs Winnsboro SC SE SAIF NASDAQ 07/07/94 19.938 14.06 27.3
SSB Scotland Bancorp, Inc Laurinburg NC SE SAIF AMSE 04/01/96 16.000 29.44 NA
Maximum 26.000 29.44 47.1
Minimum 7.250 4.37 12.7
Average 16.070 12.34 27.7
Median 15.750 12.93 27.3
2
FERGUSON & COMPANY Exhibit VI.1 - Comparatives Selection
- ------------------
Price/ Current Current Current Total Equity/
Core Price/ Price/ T Price/ Dividend Assets Assets
EPS Book V Book V Assets Yield ($000) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ
ALBC 151.0 78.6 78.6 7.6 1.71 59,860 9.6
ATSB 38.3 88.3 89.2 9.0 1.63 72,219 10.2
CKFB 20.5 105.8 105.8 27.8 2.44 60,038 25.2
CRZY 21.5 93.0 93.0 27.7 2.91 52,593 29.8
CSBF 30.7 87.2 92.7 21.9 -- 47,527 25.2
FLKY 24.6 110.3 110.3 41.0 -- 36,858 37.1
GLBK 26.0 106.3 106.3 17.4 -- 36,927 16.4
GWBC 20.1 91.6 91.6 23.5 2.76 66,439 25.6
HBBI 21.9 110.1 110.1 14.7 1.43 44,564 12.5
HCFC NA 95.4 95.4 19.6 2.29 68,140 20.5
HWEN 18.3 99.0 99.0 19.9 1.30 39,030 20.1
HZFS 15.3 93.3 93.3 10.2 1.80 74,043 10.9
JOAC 33.2 103.9 103.9 31.7 3.42 35,110 30.5
LONF 19.7 104.2 104.2 22.3 1.52 37,313 21.4
LXMO 21.5 103.1 103.1 31.8 -- 61,650 30.8
MBSP 26.7 105.3 105.3 45.9 5.00 34,203 43.6
MCBN 9.7 87.9 87.9 7.6 2.74 57,838 8.6
MIVI 18.0 99.2 99.2 18.4 1.06 70,329 18.5
MSBF 13.1 109.7 109.7 20.9 2.33 66,541 19.1
NSLB 28.6 99.0 99.0 20.8 3.13 58,394 21.0
PWBK 15.2 91.1 91.1 18.3 2.00 46,707 20.1
RELI 18.1 82.1 NA 41.1 -- 44,605 50.1
SCBS NA 96.2 96.2 21.3 -- 72,151 22.1
SCCB 24.9 118.3 118.3 30.6 3.01 45,919 25.9
SSB 22.2 117.3 117.3 43.3 1.88 68,067 36.9
Maximum 151.0 118.3 118.3 45.9 5.00 74,043 50.1
Minimum 9.7 78.6 78.6 7.6 -- 34,203 8.6
Average 27.8 99.0 100.0 23.8 1.77 54,283 23.7
Median 21.5 99.0 99.1 21.3 1.80 57,838 21.4
Tangible ROAA ROAA ROACE ROACE
Equity/ Core Core Before Before Before Before
T Assets EPS EPS Extra Extra Extra Extra
(%) ($) ($) (%) (%) (%) (%)
MRQ LTM MRQ LTM MRQ LTM MRQ
ALBC 9.6 0.44 0.03 (0.10) (1.14) (1.00) (11.45)
ATSB 10.1 0.26 0.08 0.30 0.33 3.00 3.30
CKFB 25.2 0.82 0.22 1.30 1.31 4.87 5.19
CRZY 29.8 NA 0.16 0.83 1.23 2.86 4.12
CSBF 24.0 0.35 0.09 0.51 0.89 1.78 3.49
FLKY 37.1 NA 0.16 0.98 1.52 NA 4.18
GLBK 16.4 1.07 0.25 0.74 0.75 4.63 4.58
GWBC 25.6 0.68 0.18 0.76 1.10 2.99 4.34
HBBI 12.5 (0.06) 0.24 (0.36) 0.63 (2.60) 4.92
HCFC 20.5 NA NA NA 1.22 NA 7.96
HWEN 20.1 NA 0.21 0.57 0.91 NA 4.51
HZFS 10.9 0.55 0.29 0.14 0.83 1.27 7.70
JOAC 30.5 0.39 0.11 0.49 0.85 1.66 2.84
LONF 21.4 NA 0.20 0.75 1.03 3.77 4.78
LXMO 30.8 NA 0.18 0.88 1.33 NA 4.34
MBSP 43.6 NA 0.15 NA 1.62 NA 3.72
MCBN 8.6 1.50 0.49 0.40 0.87 4.42 9.16
MIVI 18.5 0.83 0.21 0.68 0.98 3.63 5.32
MSBF 19.1 1.57 0.41 1.29 1.54 6.07 7.93
NSLB 21.0 0.52 0.14 0.51 0.85 2.29 4.04
PWBK 20.1 NA 0.23 0.53 1.09 NA 5.44
RELI NA NA 0.10 NA 2.19 NA 3.92
SCBS 22.1 NA NA NA 0.94 NA 5.91
SCCB 25.9 0.73 0.20 0.90 1.20 3.21 4.42
SSB 36.9 NA 0.18 1.31 1.77 3.86 4.84
Maximum 43.6 1.57 0.49 1.31 2.19 6.07 9.16
Minimum 8.6 (0.06) 0.03 (0.36) (1.14) (2.60) (11.45)
Average 22.5 0.69 0.20 0.64 1.03 2.75 4.38
Median 21.2 0.62 0.18 0.68 1.03 3.00 4.51
3
FERGUSON & COMPANY EXHIBIT VI.1 - Comparatives Selection
- ------------------
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Merger Current Assets Deposits Assets Assets Assets For Others Assets
Target? Pricing (%) (%) (%) (%) (%) ($000) (%) Reasons for Exclusion
Ticker (Y/N) Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ ------------------------
ALBC N 03/20/97 0.37 100.37 78.98 78.69 10.49 11,367 19.0 C
ATSB N 03/20/97 2.59 103.00 70.99 68.93 20.30 28,300 39.2 F
CKFB N 03/20/97 0.52 124.50 88.82 71.34 2.09 - - SELECTED
CRZY N 03/20/97 0.17 92.62 51.19 55.27 14.23 80 0.2 SELECTED
CSBF N 03/20/97 0.78 78.77 58.56 74.35 - - - SELECTED
FLKY N 03/20/97 0.36 149.63 88.27 58.99 2.55 NA NA B
GLBK Y 03/20/97 - 47.28 39.49 83.53 - NA NA A, E, G
GWBC N 03/20/97 0.12 38.94 28.83 74.05 - - - G
HBBI N 03/20/97 1.14 81.84 63.83 77.99 8.93 - - SELECTED
HCFC N 03/20/97 0.34 102.82 74.78 72.73 6.02 2,410 3.5 D
HWEN N 03/20/97 0.62 122.38 76.47 62.48 17.17 - - B
HZFS N 03/20/97 1.35 92.92 69.58 74.88 13.68 1,688 2.3 SELECTED
JOAC N 03/20/97 0.74 100.16 68.65 68.54 - - - SELECTED
LONF N 03/20/97 0.80 97.40 75.16 77.17 0.80 - - SELECTED
LXMO N 03/20/97 0.92 107.66 73.93 68.67 - NA NA B
MBSP N 03/20/97 2.28 146.70 78.81 53.72 - - - F
MCBN N 03/20/97 0.40 113.92 83.59 73.38 17.62 6,941 12.0 SELECTED
MIVI N 03/20/97 0.26 79.40 63.61 80.11 - - - SELECTED
MSBF N 03/20/97 0.47 151.88 94.31 62.10 18.03 33,183 49.9 H
NSLB N 03/20/97 - 74.65 54.19 72.60 5.14 - - SELECTED
PWBK N 03/20/97 0.95 61.45 46.06 74.96 3.17 152 0.3 G
RELI N 03/20/97 - 140.69 56.55 40.19 8.97 NA NA SELECTED
SCBS N 03/20/97 2.20 70.87 55.02 77.64 - - - D, F
SCCB N 03/20/97 1.83 106.77 77.89 72.95 - NA NA F
SSB N 03/20/97 0.05 110.81 68.03 61.39 - - - SELECTED
Maximum 2.59 151.88 94.31 83.53 20.30 33,183 49.9
Minimum - 38.94 28.83 40.19 - - -
Average 0.77 99.90 67.42 69.47 5.97 4,206 6.3
Median 0.52 100.37 69.58 72.73 2.55 - -
4
FERGUSON & COMPANY Exhibit VI.2 - Comparatives Selected
- ------------------
Deposit
Insurance
Agency
Ticker Short Name City State Region (BIF/SAIF) Exchange
CKFB CKF Bancorp, Inc. Danville KY MW SAIF NASDAQ
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ
CSBF CSB Financial Group, Inc. Centralia IL MW SAIF NASDAQ
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ
JOAC Joachim Bancorp, Inc. De Soto MO MW SAIF NASDAQ
LONF London Financial Corporation London OH MW SAIF NASDAQ
MCBN Mid-Coast Bancorp, Inc. Waldoboro ME NE SAIF NASDAQ
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ
NSLB NS&L Bancorp, Inc. Neosho MO MW SAIF NASDAQ
RELI Reliance Bancshares, Inc. Milwaukee WI MW SAIF NASDAQ
SSB Scotland Bancorp, Inc Laurinburg NC SE SAIF AMSE
Maximum
Minimum
Average
Median
Current Current Price/
Stock Market LTM
Price Value Core EPS
Ticker IPO Date ($) ($M) (x)
CKFB 01/04/95 18.000 16.69 22.0
CRZY 03/29/96 13.750 14.55 NA
CSBF 10/09/95 11.063 10.42 31.6
HBBI 02/08/95 21.000 6.54 NM
HZFS 06/30/94 17.750 7.55 32.3
JOAC 12/28/95 14.625 11.12 37.5
LONF 04/01/96 15.750 8.33 NA
MCBN 11/02/89 19.000 4.37 12.7
MIVI 03/24/95 15.125 12.93 18.2
NSLB 06/08/95 16.000 11.78 30.8
RELI 04/19/96 7.250 18.33 NA
SSB 04/01/96 16.000 29.44 NA
Maximum 21.000 29.44 37.5
Minimum 7.250 4.37 12.7
Average 15.443 12.67 26.4
Median 15.875 11.45 30.8
5
FERGUSON & COMPANY Exhibit VI.2 - Comparatives Selected
- ------------------
Tangible
Price/ Current Current Current Total Equity/ Equity/
Core Price/ Price/ T Price/ Dividend Assets Assets T Assets
EPS Book V Book V Assets Yield ($000) (%) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ
CKFB 20.5 105.8 105.8 27.8 2.44 60,038 25.2 25.2
CRZY 21.5 93.0 93.0 27.7 2.91 52,593 29.8 29.8
CSBF 30.7 87.2 92.7 21.9 - 47,527 25.2 24.0
HBBI 21.9 110.1 110.1 14.7 1.43 44,564 12.5 12.5
HZFS 15.3 93.3 93.3 10.2 1.80 74,043 10.9 10.9
JOAC 33.2 103.9 103.9 31.7 3.42 35,110 30.5 30.5
LONF 19.7 104.2 104.2 22.3 1.52 37,313 21.4 21.4
MCBN 9.7 87.9 87.9 7.6 2.74 57,838 8.6 8.6
MIVI 18.0 99.2 99.2 18.4 1.06 70,329 18.5 18.5
NSLB 28.6 99.0 99.0 20.8 3.13 58,394 21.0 21.0
RELI 18.1 82.1 NA 41.1 - 44,605 50.1 NA
SSB 22.2 117.3 117.3 43.3 1.88 68,067 36.9 36.9
Maximum 33.2 117.3 117.3 43.3 3.42 74,043 50.1 36.9
Minimum 9.7 82.1 87.9 7.6 - 35,110 8.6 8.6
Average 21.6 98.6 100.6 23.9 1.86 54,202 24.2 21.8
Median 21.0 99.1 99.2 22.1 1.84 55,216 23.3 21.4
ROAA ROAA ROACE ROACE
Core Core Before Before Before Before
EPS EPS Extra Extra Extra Extra
($) ($) (%) (%) (%) (%)
Ticker LTM MRQ LTM MRQ LTM MRQ
CKFB 0.82 0.22 1.30 1.31 4.87 5.19
CRZY NA 0.16 0.83 1.23 2.86 4.12
CSBF 0.35 0.09 0.51 0.89 1.78 3.49
HBBI (0.06) 0.24 (0.36) 0.63 (2.60) 4.92
HZFS 0.55 0.29 0.14 0.83 1.27 7.70
JOAC 0.39 0.11 0.49 0.85 1.66 2.84
LONF NA 0.20 0.75 1.03 3.77 4.78
MCBN 1.50 0.49 0.40 0.87 4.42 9.16
MIVI 0.83 0.21 0.68 0.98 3.63 5.32
NSLB 0.52 0.14 0.51 0.85 2.29 4.04
RELI NA 0.10 NA 2.19 NA 3.92
SSB NA 0.18 1.31 1.77 3.86 4.84
Maximum 1.50 0.49 1.31 2.19 4.87 9.16
Minimum (0.06) 0.09 (0.36) 0.63 (2.60) 2.84
Average 0.61 0.20 0.60 1.12 2.53 5.03
Median 0.54 0.19 0.51 0.94 2.86 4.81
6
FERGUSON & COMPANY Exhibit VI.2 - Comparatives Selected
- ------------------
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Merger Current Assets Deposits Assets Assets Assets For Others Assets
Target? Pricing (%) (%) (%) (%) (%) ($000) (%)
Ticker (Y/N) Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ
CKFB N 03/20/97 0.52 124.50 88.82 71.34 2.09 - -
CRZY N 03/20/97 0.17 92.62 51.19 55.27 14.23 80 0.2
CSBF N 03/20/97 0.78 78.77 58.56 74.35 - - -
HBBI N 03/20/97 1.14 81.84 63.83 77.99 8.93 - -
HZFS N 03/20/97 1.35 92.92 69.58 74.88 13.68 1,688 2.3
JOAC N 03/20/97 0.74 100.16 68.65 68.54 - - -
LONF N 03/20/97 0.80 97.40 75.16 77.17 0.80 - -
MCBN N 03/20/97 0.40 113.92 83.59 73.38 17.62 6,941 12.0
MIVI N 03/20/97 0.26 79.40 63.61 80.11 - - -
NSLB N 03/20/97 - 74.65 54.19 72.60 5.14 - -
RELI N 03/20/97 - 140.69 56.55 40.19 8.97 NA NA
SSB N 03/20/97 0.05 110.81 68.03 61.39 - - -
Maximum 1.35 140.69 88.82 80.11 17.62 6,941 12.0
Minimum - 74.65 51.19 40.19 - - -
Average 0.52 98.97 66.81 68.93 5.96 792 1.3
Median 0.46 95.16 65.93 72.99 3.62 - -
7
EXHIBIT VII
FERGUSON & COMPANY Exhibit VII
- ------------------ Pro Forma Assumptions
1. Net proceeds from the conversion were invested at the beginning of the
period at 6.0%, which was the approximate rate on the one-year treasury
bill on March 31, 1997. This rate was selected because it is considered
more representative of the rate the Bank is likely to earn.
2. Lexington First Federal does not intend to adopt an ESOP.
3. The Bank's RP will acquire 4% of the stock through open market purchases
at $10 per share and the expense is recognized ratably over five years as
the shares vest.
4. All pro forma income and expense items are adjusted for income taxes at
a combined state and federal rate of 36.0%.
5. In calculating the pro forma adjustments to net worth, the RP is
deducted in accordance with generally accepted accounting principles.
1
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Minimum of the Conversion Valuation Range
Valuation Date as of June 20, 1997
Lexington First Federal Savings Bank
- --------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Value $ 2,212,738
Less: Estimated Expenses (350,000)
------------------
Net Conversion Proceeds $ 1,862,738
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 1,862,738
Less: ESOP Contributions -
RP Contributions (88,510)
------------------
Net Conversion Proceeds after ESOP & RP $ 1,774,228
Estimated Incremental Rate of Return(1) 3.84%
------------------
Estimated Additional Income $ 68,130
Less: ESOP Expense NA
RP Expense (11,329)
------------------
$ 56,801
==================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
--------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
March 31, 1997 $ 279,000 $ 56,801 $ 335,801
b. Pro Forma Net Worth
March 31, 1997 $ 3,923,000 $ 1,774,228 $ 5,697,228
c. Pro Forma Net Assets
March 31, 1997 $ 25,942,000 $ 1,774,228 $ 27,716,228
(1) Assumes Proceeds can be reinvested at 6.0 percent and earnings taxed at a
rate of 36.0 percent.
2
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Midpoint of the Conversion Valuation Range
Valuation Date as of June 20, 1997
Lexington First Federal Savings Bank
- ----------------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 2,603,221
Less: Estimated Expenses (350,000)
------------------------
Net Conversion Proceeds $ 2,253,221
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 2,253,221
Less: ESOP Contributions -
RP Contributions (104,129)
------------------------
Net Conversion Proceeds after ESOP & RP $ 2,149,092
Estimated Incremental Rate of Return(1) 3.84%
------------------------
Estimated Additional Income TRUE $ 82,525
Less: ESOP Expense NA
RP Expense (13,328)
------------------------
$ 69,197
========================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
--------------------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
March 31, 1997 $ 279,000 $ 69,197 $ 348,197
b. Pro Forma Net Worth
March 31, 1997 $ 3,923,000 $ 2,149,092 $ 6,072,092
c. Pro Forma Net Assets
March 31, 1997 $ 25,942,000 $ 2,149,092 $ 28,091,092
(1) Assumes Proceeds can be reinvested at 6.0 percent and earnings taxed at a
rate of 36.0 percent.
3
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Maximum of the Conversion Valuation Range
Valuation Date as of June 20, 1997
Lexington First Federal Savings Bank
- ----------------------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 2,993,704
Less: Estimated Expenses (350,000)
------------------------
Net Conversion Proceeds $ 2,643,704
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 2,643,704
Less: ESOP Contributions -
RP Contributions (119,748)
------------------------
Net Conversion Proceeds after ESOP & RP $ 2,523,956
Estimated Incremental Rate of Return(1) 3.84%
------------------------
Estimated Additional Income $ 96,920
Less: ESOP Expense NA
RP Expense (15,328)
------------------------
$ 81,592
========================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
--------------------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
March 31, 1997 $ 279,000 $ 81,592 $ 360,592
b. Pro Forma Net Worth
March 31, 1997 $ 3,923,000 $ 2,523,956 $ 6,446,956
c. Pro Forma Net Assets
March 31, 1997 $ 25,942,000 $ 2,523,956 $ 28,465,956
(1) Assumes Proceeds can be reinvested at 6.0 percent and earnings taxed at a
rate of 36.0 percent.
4
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the SuperMax of the Conversion Valuation Range
Valuation Date as of June 20, 1997
Lexington First Federal Savings Bank
- --------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 3,442,759
Less: Estimated Expenses $ (350,000)
--------------------------
Net Conversion Proceeds $ 3,092,759
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 3,092,759
Less: ESOP Contributions $ -
RP Contributions $ (137,710)
--------------------------
Net Conversion Proceeds after ESOP & RP $ 2,955,049
Estimated Incremental Rate of Return(1) 3.84%
--------------------------
Estimated Additional Income $ 113,474
Less: ESOP Expense NA
RP Expense $ (17,627)
--------------------------
$ 95,847
==========================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
March 31, 1997 $ 279,000 $ 95,847 $ 374,847
b. Pro Forma Net Worth
March 31, 1997 $ 3,923,000 $ 2,955,049 $ 6,878,049
c. Pro Forma Net Assets
March 31, 1997 $ 25,942,000 $ 2,955,049 $ 28,897,049
(1) Assumes Proceeds can be reinvested at 6.0 percent and earnings taxed at a
rate of 36.0 percent.
5
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Analysis Sheet
Name of Association: Lexington First Federal Savings Bank
Date of Market Prices: June 20, 1997
Tennessee Publicly All Publicly
Comparatives Held Thrifts Held Thrifts
------------ ------------ ------------
Symbols Value Mean Median Mean Median Mean Median
------------------ ---- ------ ---- ------ ---- ------
Price-Earnings Ratio P/E
- --------------------
Last Twelve Months N/A
At Minimum of Range 10.9
At Midpoint of Range 12.3 25.2 22.4 19.0 19.0 16.2 15.6
At Maximum of Range 13.7
At Supermax of Range 15.2
Price-Book Ratio P/B
- ----------------
At Minimum of Range 64.2%
At Midpoint of Range 70.8% 101.4 100.2 120.1 120.1 142.8 135.1
At Maximum of Range 76.7%
At Supermax of Range 82.7%
Price-Asset Ratio P/A
- -----------------
At Minimum of Range 13.2%
At Midpoint of Range 15.3% 24.1 22.4 15.5 15.5 14.4 13.3
At Maximum of Range 17.4%
At Supermax of Range 19.7%
6
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Analysis Sheet
Description Symbol Value
- ----------------------------------------------- -------- -----------
Full Value FV 4,300,000 P/B= 70.8%
Remaining Value to Sell RV 2,603,221 P/A= 15.3%
Pro Forma Earnings PFE 348,197 P/E= 12.3
Pro Forma Book Value PFBV 6,072,092
Pro Forma Assets PFA 28,091,092
Pre-conversion Earnings Y 279,000
Pre-conversion Book Value B 3,923,000
Pre-conversion Assets A 25,942,000
Reinvestment Rate (1) R 3.840%
Conversion Expenses 350,000
Conversion Expenses/Proceeds X 13.445%
Tax Rate TAX 36.00%
ESOP Stock Purchases E 0.00%
ESOP Amortization Period T NA
RP Stock Purchases M 4.00%
RP Amortization Period N 5 Years
Percentage Sold PS 60.540%
(1) Assumes Proceeds can be reinvested at 6.0 percent and earnings taxed at a
rate of 36.0 percent.
Estimated Value at Midpoint of Range (Full Value):
- -------------------------------------------------
V= P/A*A 4,300,000
1-P/A*PS*(1-X-M)
V= P/B*B 4,300,000
1-P/B*PS*(1-X-M)
V= P/E*PFE 4,300,000
1-P/E*PS*((1-X-M)*R-(1-TAX)*M/N)
Value Per
Estimated Value Share Total Shares Date
--------------- ----- ------------ ----
$ 4,300,000 $ 10.00 430,000 June 20, 1997
Range of Value:
- ----------------------------------------------------------
$4,300,000 x 1.15=$4,945,000 or 494,500 shares
$4,300,000 x 0.85=$3,655,000 or 365,500 shares
7
EXHIBIT VIII
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Current
Stock
Price
Ticker Short Name City State Region Exchange IPO Date ($)
AANB Abigail Adams National Bancorp Washington DC MA OTC Bul NA 26.000
ABCU Alliance Bank Culver City CA WE OTC Bul NA 0.750
ACNB ACNB Corp. Gettysburg PA MA OTC Bul NA 18.750
AMNB American National Bankshares Danville VA SE OTC Bul NA 26.250
ASTXX Bank of Astoria Astoria OR WE Pink Sh NA 13.000
ATLV Antelope Valley Bank Lancaster CA WE OTC Bul NA 36.438
BALX Bank of Alexandria Alexandria VA SE OTC Bul NA 13.000
BATH Bath National Corp. Bath NY MA OTC Bul NA 38.500
BCDO Bank of Coronado Coronado CA WE OTC Bul NA 4.500
BCNB Berlin City Bank Berlin NH NE OTC Bul NA 316.000
BCSV Bay Commercial Services San Leandro CA WE Pink Sh NA 12.750
BDGE Bridge Bancorp Inc. Bridgehampton NY MA OTC Bul NA 20.667
BHBS Bar Harbor Bankshares Bar Harbor ME NE OTC Bul NA 40.250
BKHB Blackhawk Bancorp Inc. Beloit WI MW OTC Bul NA 11.750
BKTI Bank of Tidewater Virginia Beach VA SE OTC Bul NA 20.000
BLCA Borel Bank & Trust Co. San Mateo CA WE OTC Bul NA 27.875
BMRC Bank of Marin Corte Madera CA WE OTC Bul NA 24.500
BNKA Bank of Amador Jackson CA WE OTC Bul NA 10.625
BPLU Bank of Petaluma Petaluma CA WE OTC Bul NA 23.500
BSMR BSM Bancorp Santa Maria CA WE OTC Bul NA 16.875
BVNC Beverly National Corp. Beverly MA NE OTC Bul NA 26.500
BWCF BWC Financial Corp. Walnut Creek CA WE OTC Bul NA 24.875
BWCK Brunswick Bancorp New Brunswick NJ MA OTC Bul NA 23.500
BWND Bank of South Windsor South Windsor CT NE Pink Sh NA 8.500
BYAR Bay Area Bancshares Redwood City CA WE OTC Bul NA 20.000
BYLK Baylake Corp. Sturgeon Bay WI MW OTC Bul NA 24.500
CADL Cardinal Bancorp Inc. Everett PA MA OTC Bul NA 21.000
CAFP Carolina First Bancshares Lincolnton NC SE Pink Sh NA 38.000
CAPXX Capital Bank NA Rockville MD MA Pink Sh NA 8.000
CBAN Colony Bankcorp Inc. Fitzgerald GA SE Pink Sh NA 24.000
CBIV Community Bankshares Inc. Petersburg VA SE OTC Bul NA 17.750
CBTN CB&T Inc. McMinnville TN SE OTC Bul NA 115.000
CCBN Central Coast Bancorp Salinas CA WE OTC Bul NA 22.750
CCFN CCFNB Bancorp Inc. Bloomsburg PA MA OTC Bul NA 18.750
CCNE CNB Financial Corp. Clearfield PA MA OTC Bul NA 36.500
CESR Central Sierra Bank San Andreas CA WE OTC Bul NA 13.000
CFCXX C&F Financial Corp. West Point VA SE Pink Sh NA 20.250
CHMG Chemung Financial Corporation Elmira NY MA OTC Bul NA 33.875
CIBN California Independent Bancorp Yuba City CA WE OTC Bul NA 22.000
CIWV Citizens Financial Corp. Elkins WV SE OTC Bul NA 26.000
CLDB Cortland Bancorp Cortland OH MW OTC Bul NA 48.500
CMTV Community Bancorp. Derby VT NE Pink Sh NA 19.250
CNAF Commercial National Fincl Corp Latrobe PA MA OTC Bul NA 23.500
CNBB CNB Bancorp Inc. Gloversville NY MA OTC Bul NA 28.750
CNBC Center Bancorp, Inc. Union NJ MA OTC Bul NA 32.250
CNBD CNBC Bancorp Worthington OH MW Pink Sh NA 31.500
CPKF Chesapeake Financial Shares Kilmarnock VA SE OTC Bul NA 15.000
CSBB CSB Bancorp Inc. Millersburg OH MW Pink Sh NA 45.500
CSVG Commercial Bancshares Inc. Upper Sandusky OH MW Pink Sh NA 59.000
1
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Current
Stock
Price
Ticker Short Name City State Region Exchange IPO Date ($)
CTLN Cortland First Financial Corp. Cortland NY MA OTC Bul NA 24.500
CTVN Shore Bancshares Inc. Centreville MD MA Pink Sh NA 30.000
CTZV Citizens Savings Bank & Trust St. Johnsbury VT NE OTC Bul NA 45.000
CVIC Clovis Community Bank Clovis CA WE OTC Bul NA 20.875
CVLY Codorus Valley Bancorp Inc. Glen Rock PA MA OTC Bul NA 30.000
CWBS Commonwealth Bankshares Inc. Norfolk VA SE OTC Bul NA 10.500
CYBK County Bank Corp. Lapeer MI MW OTC Bul NA 52.500
CYFN Century Financial Corporation Rochester PA MA OTC Bul NA 15.750
CZFS Citizens Financial Services Mansfield PA MA OTC Bul NA 28.000
CZNC Citizens & Northern Corp. Wellsboro PA MA OTC Bul NA 29.500
DCBF DCB Financial Corp Delaware OH MW OTC Bul NA 20.500
DEBC Delta National Bancorp Manteca CA WE OTC Bul NA 29.250
DIMC Dimeco Inc. Honesdale PA MA OTC Bul NA 26.000
DNBF DNB Financial Corp. Downingtown PA MA OTC Bul NA 40.375
DROV Drovers Bancshares Corp. York PA MA OTC Bul NA 22.750
EMBM Empire Banc Corp. Traverse City MI MW OTC Bul NA 41.000
EPNB Ephrata National Bank Ephrata PA MA OTC Bul NA 35.750
EVGS EvergreenBank Seattle WA WE Pink Sh NA 17.750
EVNXX Evans Bancorp Inc. Angola NY MA Pink Sh NA 21.000
FBMI Firstbank Corp. Alma MI MW OTC Bul NA 41.500
FBSYA First Busey Corp. Urbana IL MW OTC Bul NA 24.250
FBTT First Bankers Trustshares Inc. Quincy IL MW OTC Bul NA 33.750
FCBN First Citizens Bancorp. of SC Columbia SC SE OTC Bul NA 221.000
FCFT FCFT Inc. Princeton WV SE OTC Bul NA 31.000
FDDB Fidelity Deposit & Discount Dunmore PA MA OTC Bul NA 49.000
FDNM First National Community Bank Dunmore PA MA OTC Bul NA 33.000
FETM Fentura Bancorp Inc. Fenton MI MW OTC Bul NA 49.750
FGYH First Guaranty Bank Hammond LA SW Pink Sh NA 7.000
FINN First National of Nebraska Omaha NE MW OTC Bul NA 4,035.000
FIOW First Financial Bancorp. Iowa City IA MW OTC Bul NA 33.250
FIVR First Evergreen Corp. Evergreen Park IL MW Pink Sh NA 430.000
FJMY First Jermyn Corp. (The) Jermyn PA MA OTC Bul NA 48.000
FKYS First Keystone Corp. Berwick PA MA OTC Bul NA 40.625
FLHI First Lehigh Corp. Allentown PA MA OTC Bul NA 5.125
FLLC First Financial Bancorp Lodi CA WE OTC Bul NA 9.875
FMBH First Mid-Illinois Bancshares Mattoon IL MW OTC Bul NA 44.500
FMNB Farmers National Banc Corp. Canfield OH MW OTC Bul NA 27.000
FNAN First NB of Anchorage Anchorage AK WE OTC Bul NA 1,845.000
FNBB FNB Financial Corporation McConnellsburg PA MA Pink Sh NA 40.500
FNBL First Litchfield Financial Litchfield CT NE Pink Sh NA 29.000
FNBP FNB Corp. Christiansburg VA SE Pink Sh NA 40.000
FNLB First National Bancorp Inc. Joliet IL MW Pink Sh NA 48.000
FOBT Four Oaks Bank & Trust Co. Four Oaks NC SE OTC Bul NA 26.500
FPHN First Philson Financial Corp. Berlin PA MA OTC Bul NA 59.000
FRAF Franklin Financial Services Chambersburg PA MA OTC Bul NA 35.000
FRMS Farmers & Merchants Bancorp Archbold OH MW Pink Sh NA 61.500
FWCC First West Chester Corp. West Chester PA MA OTC Bul NA 30.750
FWEH First Bank of West Hartford West Hartford CT NE OTC Bul NA 10.250
FXNC First National Corp. Strasburg VA SE OTC Bul NA 21.750
2
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Current
Stock
Price
Ticker Short Name City State Region Exchange IPO Date ($)
GABS Georgia Bancshares Inc. Tucker GA SE Pink Sh NA 12.000
GBFP Georgia Bank Financial Corp. Augusta GA SE Pink Sh NA 19.625
GFLS Greater Community Bancorp Totowa NJ MA OTC Bul NA 18.000
GLBT Glastonbury Bank and Trust Co Glastonbury CT NE OTC Bul NA 10.625
GRBC GreatBanc Inc. Aurora IL MW Pink Sh NA 9.500
GREXX Greer State Bank Greer SC SE Pink Sh NA 23.000
GRGN Grange National Banc Corp. Tunkhannock PA MA OTC Bul NA 38.500
GRYB Guaranty State Bancorp Durham NC SE OTC Bul NA 22.375
HABN Harbor Bancorp Long Beach CA WE OTC Bul NA 16.500
HBKS Heritage Bankshares Inc. Norfolk VA SE OTC Bul NA 12.500
HBNC Horizon Bancorp Michigan City IN MW OTC Bul NA 55.000
HBSI Highlands Bankshares Inc. Petersburg WV SE OTC Bul NA 45.000
HEOP Heritage Oaks Bancorp Paso Robles CA WE OTC Bul NA 15.500
HOVB Hanover Bancorp Inc. Hanover PA MA OTC Bul NA 17.250
HRFD Harford National Bank Aberdeen MD MA OTC Bul NA 54.000
HTLF Heartland Financial USA Inc. Dubuque IA MW Pink Sh NA 26.000
IBDB Ironbound Bank Newark NJ MA Pink Sh NA 14.000
IBNC International Bancshares Corp. Laredo TX SW OTC Bul NA 51.000
IFNC Intrust Financial Corp. Wichita KS MW OTC Bul NA 72.000
IFST Iowa First Bancshares Corp. Muscatine IA MW OTC Bul NA 22.000
JFBC Jeffersonville Bancorp Jeffersonville NY MA Pink Sh NA 22.000
JUVF Juniata Valley Financial Corp. Mifflintown PA MA OTC Bul NA 44.750
LAYB Lafayette Bancorp. Lafayette IN MW OTC Bul NA 28.000
LKFN Lakeland Financial Corp. Warsaw IN MW OTC Bul NA 35.750
LNBB LNB Bancorp Inc. Lorain OH MW OTC Bul NA 29.500
LNBS Lanier Bankshares Inc. Gainesville GA SE OTC Bul NA 19.500
MBKT Monroe Bank and Trust Monroe MI MW OTC Bul NA 33.000
MCBF MCB Financial Corp. San Rafael CA WE OTC Bul NA 12.375
MFRM Mechanics and Farmers Bank Durham NC SE OTC Bul NA 15.000
MGNB Mahoning National Bancorp Inc. Youngstown OH MW OTC Bul NA 22.000
MIPN Mid Penn Bancorp Inc. Millersburg PA MA OTC Bul NA 34.750
MMBI Merchants and Manufacturers New Berlin WI MW OTC Bul NA 32.875
MSHN Merchants of Shenandoah BnCorp Shenandoah PA MA OTC Bul NA 27.000
MTMB Maritime Bank & Trust Co. Essex CT NE OTC Bul NA 16.000
MTTB Mid-State Bank Arroyo Grande CA WE OTC Bul NA 20.000
NBOH National Bancshares Corp. Orrville OH MW OTC Bul NA 38.625
NECA New Canaan Bank & Trust Co. New Canaan CT NE OTC Bul NA 55.000
NKSH National Bankshares Inc. Blacksburg VA SE OTC Bul NA 24.500
NOAB North American Bank & Trust Waterbury CT NE Pink Sh NA 3.250
NOTW Northwest Bank & Trust Co. Davenport IA MW OTC Bul NA 34.000
NOVB North Valley Bancorp Redding CA WE OTC Bul NA 27.500
OHSB Ohio State Bankshares Inc. Marion OH MW Pink Sh NA 33.500
ORRB Orrstown Financial Services Shippensburg PA MA OTC Bul NA 31.000
PABN Pacific Capital Bancorp Salinas CA WE OTC Bul NA 25.875
PACXX Pacific Northwest Bank Seattle WA WE Pink Sh NA 63.000
PAHC Pioneer American Holding Co. Carbondale PA MA OTC Bul NA 24.250
PCHB Pocahontas Bankshares Corp. Bluefield WV SE OTC Bul NA 19.000
PCLF Pinnacle Financial Corp. Elberton GA SE Pink Sh NA 62.500
PFCY Peoples Financial Corp. Ford City PA MA Pink Sh NA 28.500
3
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Current
Stock
Price
Ticker Short Name City State Region Exchange IPO Date ($)
PLBA Plumas Bank Quincy CA WE OTC Bul NA 14.000
PNBF PNB Financial Group Newport Beach CA WE OTC Bul NA 13.000
PPBK Peoples Bank of Oxford Oxford PA MA OTC Bul NA 22.250
PRFS PennRock Financial Services Blue Ball PA MA OTC Bul NA 18.875
PSBT Penn Security B&TC Scranton PA MA OTC Bul NA 92.250
PSEB Peoples State Bank (The) East Berlin PA MA OTC Bul NA 18.125
PSHR Pioneer Bancshares Inc. Chattanooga TN SE OTC Bul NA 38.500
PWOD Penns Woods Bancorp Inc. Jersey Shore PA MA OTC Bul NA 57.700
QNBC QNB Corp. Quakertown PA MA OTC Bul NA 32.375
RBNF Rurban Financial Corp. Defiance OH MW OTC Bul NA 30.750
SBGA Summit Bank Corporation Atlanta GA SE OTC Bul NA 14.750
SBHC Security Bank Holding Company Coos Bay OR WE OTC Bul NA 8.250
SBTL Salisbury Bank & Trust Co. Lakeville CT NE OTC Bul NA 67.000
SBVA Salem Bank and Trust NA Salem VA SE OTC Bul NA 16.000
SFBC Slade's Ferry Bancorp Somerset MA NE OTC Bul NA 9.375
SLFI Sterling Financial Corp. Lancaster PA MA OTC Bul NA 25.375
SLNB Santa Lucia National Bank Atascadero CA WE Pink Sh NA 19.750
SMAL Summit Bancshares Inc. Oakland CA WE OTC Bul NA 37.500
SMTB Smithtown Bancorp Inc. Smithtown NY MA OTC Bul NA 37.000
SOJB Southern Jersey Bancorp of DE Bridgeton NJ MA OTC Bul NA 44.500
SOMC Southern Michigan Bancorp Inc. Coldwater MI MW OTC Bul NA 48.250
SOVY Sonoma Valley Bank Sonoma CA WE OTC Bul NA 27.500
SRCK Slippery Rock Financial Corp. Slippery Rock PA MA OTC Bul NA 34.250
SRTB Saratoga Bancorp Saratoga CA WE OTC Bul NA 16.000
STYB Security Banc Corp. Springfield OH MW OTC Bul NA 47.000
TBLC Timberline Bancshares Inc. Yreka CA WE OTC Bul NA 14.125
TOBC Tower Bancorp Inc. Greencastle PA MA OTC Bul NA 36.500
TRIXX Tri City Bankshares Corp. Oak Creek WI MW Pink Sh NA 22.500
UBFO United Security Bank NA Fresno CA WE Pink Sh NA 32.000
UNBO UNB Corp. Canton OH MW OTC Bul NA 37.500
UPBN Upbancorp Inc. Chicago IL MW OTC Bul NA 80.000
UVSP Univest Corporation of PA Souderton PA MA OTC Bul NA 41.500
VADO Valle de Oro Bank NA El Cajon CA WE OTC Bul NA 23.250
VCBA Virginia Commerce Bank Arlington VA SE OTC Bul NA 13.125
VNBC Vineyard National Bancorp Rancho Cucamonga CA WE OTC Bul NA 3.625
VRBA VRB Bancorp Rogue River OR WE OTC Bul NA 15.500
VTGB Vintage Bank Napa CA WE OTC Bul NA 32.000
WIBW Wilton Bank Wilton CT NE OTC Bul NA 24.500
WMFR West Michigan National Bank Frankfort MI MW Pink Sh NA 17.000
WNNB Wayne Bancorp Wooster OH MW OTC Bul NA 29.000
YAVY Yadkin Valley Bank & Trust Co. Elkin NC SE Pink Sh NA 31.000
YOBK Yosemite Bank Mariposa CA WE OTC Bul NA 15.000
Maximum 4,035.000
Minimum 0.750
Average 64.432
Median 26.250
4
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Price/ Price/ Price/ Price/ Tangible
Current Current Current Current Core Core LTM LTM Total Equity/ Equity/
Market Price/ Price/T Dividend EPS EPS Core EPS Core EPS Assets Assets T Assets
Value Book V Book V Yield (x) (x) (x) (x) ($000) (%) (%)
Ticker ($M) (%) (%) (%) MRQ LTM MRQ LTM MRQ MRQ MRQ
AANB 7.41 109.1 109.1 3.85 7.4 7.0 7.0 7.0 88,889 7.6 7.6
ABCU 2.64 75.8 75.8 - 9.4 8.3 8.3 8.3 52,315 6.7 6.7
ACNB 98.50 199.7 199.7 3.84 13.0 12.2 12.2 12.2 462,499 10.7 10.7
AMNB 86.09 163.4 176.7 3.20 12.5 11.2 11.2 11.2 430,900 12.2 11.4
ASTXX 15.03 172.2 172.2 5.39 8.7 8.6 8.6 8.6 79,894 10.9 10.9
ATLV 27.96 156.6 206.7 - 16.8 14.5 14.5 14.5 184,506 9.7 7.5
BALX 8.92 122.1 122.1 - 14.5 16.1 16.1 16.1 75,024 9.7 9.7
BATH 52.58 171.2 173.0 2.08 15.4 14.6 14.6 14.6 266,765 11.5 11.4
BCDO 3.39 96.6 96.6 - 3.6 4.8 4.8 4.8 38,666 9.1 9.1
BCNB 20.00 92.4 97.9 2.22 6.0 7.6 7.6 7.6 243,466 8.9 8.4
BCSV 13.73 143.6 143.6 2.35 18.3 15.5 15.5 15.5 101,597 9.4 9.4
BDGE 29.10 168.9 168.9 2.42 9.6 9.3 9.3 9.3 215,796 8.0 8.0
BHBS 69.25 178.0 178.0 2.98 10.1 10.1 10.1 10.1 345,183 11.3 11.3
BKHB 26.92 120.8 120.8 3.40 14.8 15.2 15.2 15.2 152,142 14.7 14.7
BKTI 35.97 231.8 231.8 5.00 19.0 17.7 17.7 17.7 148,091 10.5 10.5
BLCA 39.67 215.4 215.4 4.84 10.3 11.6 11.6 11.6 222,439 8.3 8.3
BMRC 30.56 183.0 183.0 - 13.5 12.2 12.2 12.2 204,204 8.2 8.2
BNKA 14.12 160.7 161.7 4.52 11.2 11.2 11.2 11.2 76,346 11.5 11.4
BPLU 14.40 153.9 156.5 0.85 10.9 11.4 11.4 11.4 130,903 7.2 7.0
BSMR 50.21 153.8 163.8 3.56 8.9 9.4 9.4 9.4 302,422 10.1 9.5
BVNC 19.99 128.8 128.8 2.42 11.8 11.5 11.5 11.5 184,798 8.4 8.4
BWCF 27.93 165.2 165.2 - 12.7 14.0 14.0 14.0 182,990 9.2 9.2
BWCK 16.97 90.1 90.1 - 20.3 18.2 18.2 18.2 92,826 20.3 20.3
BWND 8.00 86.8 86.8 - 10.6 10.9 10.9 10.9 145,865 6.3 6.3
BYAR 16.92 174.4 174.4 1.80 10.2 12.3 12.3 12.3 107,357 9.0 9.0
BYLK 60.23 152.9 173.4 3.92 13.7 13.4 13.4 13.4 390,721 10.1 9.0
CADL 20.79 136.0 136.0 1.91 11.1 12.7 12.7 12.7 129,608 11.8 11.8
CAFP 78.08 216.4 218.1 1.26 12.3 13.2 13.2 13.2 443,571 8.1 8.1
CAPXX 7.77 80.6 80.6 - 4.3 4.4 4.4 4.4 130,560 7.4 7.4
CBAN 34.77 131.8 134.9 1.25 7.3 9.9 9.9 9.9 322,822 8.2 8.0
CBIV 33.74 175.6 175.6 1.13 11.7 11.0 11.0 11.0 173,331 11.1 11.1
CBTN 30.42 96.1 96.1 8.70 7.1 7.4 7.4 7.4 265,427 11.9 11.9
CCBN 97.79 258.8 270.8 - 13.6 13.3 13.3 13.3 430,316 8.8 8.4
CCFN 25.92 124.6 124.6 2.48 13.0 13.1 13.1 13.1 169,205 12.3 12.3
CCNE 62.88 157.9 171.1 3.73 19.2 15.8 15.8 15.8 340,472 11.7 10.9
CESR 10.63 133.1 133.1 4.62 9.0 9.6 9.6 9.6 95,225 8.4 8.4
CFCXX 42.79 130.2 139.2 3.16 13.7 16.6 16.6 16.6 253,675 13.0 12.2
CHMG 70.20 125.9 144.7 3.66 12.3 12.0 12.0 12.0 534,094 10.4 9.2
CIBN 31.93 163.7 163.7 2.00 12.5 12.0 12.0 12.0 216,952 9.3 9.3
CIWV 17.77 117.1 NA 1.54 12.5 11.2 11.2 11.2 128,000 11.9 NA
CLDB 53.15 144.7 NA 2.06 11.7 12.0 12.0 12.0 378,385 9.7 NA
CMTV 28.27 145.7 145.7 5.82 13.8 12.6 12.6 12.6 204,401 9.5 9.5
CNAF 42.30 126.3 126.3 2.72 10.5 10.5 10.5 10.5 267,064 12.5 12.5
CNBB 46.00 164.4 164.4 2.78 13.8 14.0 14.0 14.0 216,552 12.9 12.9
CNBC 48.51 172.6 172.6 3.72 9.9 11.3 11.3 11.3 376,852 7.5 7.5
CNBD 16.63 193.0 193.0 1.59 15.4 16.2 16.2 16.2 109,361 7.9 7.9
CPKF 12.59 103.8 104.4 2.13 9.2 7.9 7.9 7.9 141,360 8.6 8.5
CSBB 59.20 241.5 241.5 1.50 13.1 13.8 13.8 13.8 265,737 9.2 9.2
CSVG 61.45 430.0 NA 1.13 16.7 15.3 15.3 15.3 184,746 7.7 NA
5
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Price/ Price/ Price/ Price/ Tangible
Current Current Current Current Core Core LTM LTM Total Equity/ Equity/
Market Price/ Price/T Dividend EPS EPS Core EPS Core EPS Assets Assets T Assets
Value Book V Book V Yield (x) (x) (x) (x) ($000) (%) (%)
Ticker ($M) (%) (%) (%) MRQ LTM MRQ LTM MRQ MRQ MRQ
CTLN 49.39 196.0 196.0 2.29 15.9 14.8 14.8 14.8 225,862 11.2 11.2
CTVN 30.22 136.8 137.4 5.20 11.4 11.6 11.6 11.6 146,899 15.0 15.0
CTZV 6.84 75.9 75.9 3.67 7.7 8.1 8.1 8.1 89,204 10.1 10.1
CVIC 22.90 133.4 135.4 3.83 8.7 10.5 10.5 10.5 147,194 11.7 11.5
CVLY 32.93 145.0 145.0 2.41 14.0 11.4 11.4 11.4 237,329 9.6 9.6
CWBS 10.55 109.8 109.8 - 16.8 14.5 14.5 14.5 104,117 9.2 9.2
CYBK 31.14 156.8 156.8 2.13 7.7 8.0 8.0 8.0 177,786 11.2 11.2
CYFN 53.11 165.6 166.5 3.30 10.1 10.5 10.5 10.5 381,331 8.4 8.4
CZFS 38.47 160.9 167.4 3.18 14.9 12.3 12.3 12.3 282,871 8.5 8.2
CZNC 149.34 211.3 211.3 2.44 14.6 14.4 14.4 14.4 605,679 11.7 11.7
DCBF 87.60 264.5 264.5 0.38 14.8 14.6 14.6 14.6 328,697 10.1 10.1
DEBC 11.02 101.1 101.1 2.39 9.5 10.1 10.1 10.1 90,728 12.0 12.0
DIMC 18.83 140.2 140.2 2.77 12.3 11.2 11.2 11.2 135,343 9.9 9.9
DNBF 27.92 167.5 167.5 1.98 8.9 9.2 9.2 9.2 204,845 8.1 8.1
DROV 63.91 165.7 165.7 2.64 12.1 12.8 12.8 12.8 474,969 8.1 8.1
EMBM 71.73 217.2 NA 3.42 16.5 16.3 16.3 16.3 401,283 8.2 NA
EPNB 107.25 263.5 263.5 1.34 21.7 22.9 22.9 22.9 295,343 13.8 13.8
EVGS 12.38 105.0 105.0 1.13 10.2 10.8 10.8 10.8 145,593 8.1 8.1
EVNXX 7.14 45.8 NA 2.95 4.1 4.3 4.3 4.3 150,961 10.3 NA
FBMI 67.78 201.0 226.2 2.51 13.1 13.6 13.6 13.6 416,465 8.1 7.3
FBSYA 140.37 225.0 254.5 2.80 18.2 17.8 17.8 17.8 866,924 8.6 7.7
FBTT 10.69 107.6 120.0 1.54 4.8 5.2 5.2 5.2 178,644 6.1 5.6
FCBN 197.31 152.3 NA - 9.8 9.7 9.7 9.7 2,018,266 6.8 NA
FCFT 175.15 193.3 202.2 3.61 12.2 11.7 11.7 11.7 833,058 10.9 10.5
FDDB 40.79 159.6 159.6 2.25 11.7 12.5 12.5 12.5 274,501 9.3 9.3
FDNM 35.98 130.0 130.0 3.27 7.9 8.6 8.6 8.6 386,556 7.2 7.2
FETM 34.02 137.9 137.9 3.06 10.6 9.6 9.6 9.6 253,230 9.7 9.7
FGYH 18.01 153.9 153.9 5.71 7.8 7.3 7.3 7.3 207,830 7.7 7.7
FINN 1,399.20 280.8 NA 0.84 21.9 17.3 17.3 17.3 7,068,470 7.1 NA
FIOW 77.72 145.0 146.6 2.65 13.3 12.9 12.9 12.9 492,372 10.9 10.8
FIVR 172.64 94.0 96.2 3.95 9.4 8.7 8.7 8.7 1,916,642 9.6 9.4
FJMY 42.46 143.8 147.5 2.71 12.4 12.2 12.2 12.2 317,197 9.3 9.1
FKYS 39.73 144.9 144.9 3.45 7.7 8.0 8.0 8.0 250,351 11.0 11.0
FLHI 10.25 156.7 156.7 - 5.7 12.2 12.2 12.2 110,642 11.3 11.3
FLLC 12.94 108.3 108.3 2.03 9.9 15.9 15.9 15.9 139,585 8.6 8.6
FMBH 42.42 112.0 148.1 2.11 9.1 9.5 9.5 9.5 534,563 7.6 6.0
FMNB 90.22 250.7 253.1 2.07 22.2 21.5 21.5 21.5 343,259 10.5 10.4
FNAN 369.00 106.7 106.7 2.71 9.1 9.9 9.9 9.9 1,467,345 23.6 23.6
FNBB 16.20 150.7 153.5 1.68 15.0 13.9 13.9 13.9 100,967 10.6 10.5
FNBL 14.83 119.5 119.5 3.31 11.9 10.1 10.1 10.1 188,966 6.6 6.6
FNBP 66.48 175.0 175.0 3.50 12.8 12.1 12.1 12.1 391,282 9.5 9.5
FNLB 116.73 162.1 189.0 3.13 11.6 13.2 13.2 13.2 814,721 8.8 7.7
FOBT 22.26 152.1 154.0 2.11 10.1 10.3 10.3 10.3 167,635 8.7 8.6
FPHN 25.70 118.3 118.3 2.37 8.9 9.6 9.6 9.6 199,438 10.9 10.9
FRAF 65.78 185.1 197.4 2.29 15.3 15.7 15.7 15.7 338,710 10.4 9.9
FRMS 79.95 180.4 180.4 1.63 11.6 14.0 14.0 14.0 503,256 8.8 8.8
FWCC 70.35 211.1 211.1 2.47 14.1 14.4 14.4 14.4 407,802 8.2 8.2
FWEH 15.80 177.0 177.0 1.95 20.3 16.8 16.8 16.8 81,544 10.9 10.9
FXNC 16.86 112.4 112.4 3.22 11.4 10.9 10.9 10.9 148,890 10.1 10.1
6
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Price/ Price/ Price/ Price/ Tangible
Current Current Current Current Core Core LTM LTM Total Equity/ Equity/
Market Price/ Price/ T Dividend EPS EPS Core EPS Core EPS Assets Assets T Assets
Value Book V Book V Yield (x) (x) (x) (x) ($000) (%) (%)
Ticker ($M) (%) (%) (%) MRQ LTM MRQ LTM MRQ MRQ MRQ
GABS 7.01 115.9 115.9 1.67 15.8 13.3 13.3 13.3 58,920 10.3 10.3
GBFP 30.27 183.1 192.4 - 15.3 15.2 15.2 15.2 236,892 7.0 6.7
GFLS 33.95 155.6 NA 1.78 17.1 15.7 15.7 15.7 267,097 8.2 NA
GLBT 19.44 127.6 127.6 - 8.5 4.9 4.9 4.9 230,106 6.6 6.6
GRBC 12.69 77.6 77.6 5.90 19.5 9.5 9.5 9.5 462,132 5.3 5.3
GREXX 14.40 165.7 165.7 - 14.6 14.8 14.8 14.8 95,433 9.1 9.1
GRGN 13.72 122.0 123.6 - 10.0 9.7 9.7 9.7 111,039 10.1 10.0
GRYB 19.72 186.9 186.9 1.61 22.4 19.7 19.7 19.7 97,946 10.8 10.8
HABN 23.35 145.4 147.3 3.03 14.2 16.0 16.0 16.0 205,173 7.8 7.7
HBKS 9.86 156.3 156.3 - 9.4 10.0 10.0 10.0 82,746 7.6 7.6
HBNC 39.55 116.9 116.9 3.27 11.4 9.5 9.5 9.5 375,217 8.9 8.9
HBSI 22.59 113.4 113.4 2.22 12.0 10.9 10.9 10.9 181,476 11.0 11.0
HEOP 10.49 150.3 154.2 3.23 10.4 11.0 11.0 11.0 84,896 8.2 8.0
HOVB 51.18 162.4 162.4 2.78 16.1 16.6 16.6 16.6 369,234 8.5 8.5
HRFD 17.50 151.7 151.7 1.33 7.9 9.4 9.4 9.4 109,427 10.5 10.5
HTLF 123.15 173.8 180.1 2.00 18.2 16.5 16.5 16.5 771,113 9.2 8.9
IBDB 14.58 138.5 140.9 1.43 10.5 12.5 12.5 12.5 109,169 9.7 9.5
IBNC 561.01 194.1 NA 0.78 10.1 11.1 11.1 11.1 3,407,238 8.5 NA
IFNC 158.48 126.2 NA 1.94 8.7 11.3 11.3 11.3 1,770,582 7.1 NA
IFST 38.63 150.1 154.3 3.46 10.5 10.4 10.4 10.4 287,046 9.0 8.8
JFBC 26.02 123.6 123.6 3.00 13.4 13.7 13.7 13.7 208,295 10.1 10.1
JUVF 49.99 183.0 183.0 1.79 16.9 16.9 16.9 16.9 216,006 12.6 12.6
LAYB 55.02 156.9 161.3 1.71 12.3 13.0 13.0 13.0 399,332 8.8 8.6
LKFN 103.76 240.7 240.7 1.68 13.8 15.0 15.0 15.0 667,925 6.5 6.5
LNBB 124.56 276.5 276.5 2.17 20.3 20.7 20.7 20.7 445,448 10.1 10.1
LNBS 12.05 140.5 140.5 1.28 9.4 9.8 9.8 9.8 82,799 10.4 10.4
MBKT 165.00 150.7 NA 2.18 10.5 10.1 10.1 10.1 938,941 11.7 NA
MCBF 11.85 112.8 112.8 - 14.2 12.4 12.4 12.4 134,945 7.7 7.7
MFRM 8.54 58.4 58.7 5.20 6.1 6.5 6.5 6.5 129,048 11.3 11.3
MGNB 138.60 178.1 178.1 2.91 11.9 11.9 11.9 11.9 785,348 9.9 9.9
MIPN 45.32 182.5 183.7 4.17 12.1 12.0 12.0 12.0 209,037 11.9 11.8
MMBI 28.26 107.7 107.7 2.43 25.0 16.6 16.6 16.6 273,130 9.6 9.6
MSHN 7.86 126.8 127.0 1.85 15.0 17.8 17.8 17.8 58,127 10.7 10.7
MTMB 7.52 127.2 127.2 3.00 12.4 11.6 11.6 11.6 74,273 8.0 8.0
MTTB 131.54 203.9 203.9 - 9.7 18.3 18.3 18.3 790,608 8.2 8.2
NBOH 44.22 175.5 180.0 1.76 19.9 20.0 20.0 20.0 177,078 14.2 13.9
NECA 18.05 139.6 139.6 - 12.7 11.9 11.9 11.9 146,223 8.8 8.8
NKSH 92.92 176.9 180.3 2.69 16.3 16.1 16.1 16.1 392,878 13.4 13.2
NOAB 8.37 71.4 71.4 - 10.7 17.7 17.7 17.7 131,176 8.9 8.9
NOTW 28.90 168.8 168.8 6.77 14.5 13.6 13.6 13.6 152,927 11.2 11.2
NOVB 50.15 201.3 NA 2.55 10.9 11.1 11.1 11.1 264,011 9.4 NA
OHSB 4.06 124.5 124.5 - 13.7 13.8 13.8 13.8 44,133 7.4 7.4
ORRB 30.28 190.0 196.7 2.45 13.6 13.4 13.4 13.4 166,055 9.6 9.3
PABN 70.64 156.9 156.9 2.32 13.1 14.0 14.0 14.0 412,510 10.9 10.9
PACXX 24.47 176.6 176.6 0.95 15.5 14.2 14.2 14.2 164,292 8.4 8.4
PAHC 68.60 237.1 242.3 2.80 20.7 19.7 19.7 19.7 356,890 8.4 8.2
PCHB 38.00 153.9 156.3 3.16 15.8 13.7 13.7 13.7 277,611 8.9 8.8
PCLF 48.00 143.1 143.1 2.88 9.9 9.9 9.9 9.9 241,786 13.9 13.9
PFCY 25.08 87.0 87.7 3.37 12.1 14.5 14.5 14.5 219,249 13.2 13.1
7
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
Price/ Price/ Price/
Current Current Current Current Core Core LTM
Market Price/ Price/T Dividend EPS EPS Core EPS
Value Book V Book V Yield (x) (x) (x)
Ticker ($M) (%) (%) (%) MRQ LTM MRQ
PLBA 18.73 155.6 NA - 13.0 12.7 12.7
PNBF 28.50 152.9 152.9 - 8.0 6.8 6.8
PPBK 60.61 196.6 196.6 1.44 16.7 18.5 18.5
PRFS 114.21 213.5 217.0 2.54 14.2 16.0 16.0
PSBT 49.54 121.1 121.1 3.47 10.6 10.8 10.8
PSEB 26.68 148.1 148.1 1.99 13.1 14.0 14.0
PSHR 144.76 154.6 165.7 2.39 14.5 14.9 14.9
PWOD 73.70 212.9 212.9 2.08 13.6 13.6 13.6
QNBC 46.21 202.9 202.9 1.98 15.8 16.3 16.3
RBNF 70.35 166.9 170.9 2.34 14.0 14.5 14.5
SBGA 20.76 132.3 130.0 2.17 17.6 13.0 13.0
SBHC 22.79 164.3 171.2 2.42 9.9 10.2 10.2
SBTL 17.33 90.5 90.5 2.99 7.8 8.7 8.7
SBVA 21.30 150.1 150.1 1.81 12.7 13.7 13.7
SFBC 26.23 130.0 155.0 2.13 12.2 11.2 11.2
SLFI 157.93 224.2 224.2 3.00 15.7 16.6 16.6
SLNB 7.79 104.7 104.7 10.13 9.6 9.2 9.2
SMAL 16.10 132.0 132.0 4.00 10.1 10.4 10.4
SMTB 16.03 109.6 109.6 3.78 4.7 6.6 6.6
SOJB 48.34 118.8 118.8 2.47 9.0 9.2 9.2
SOMC 46.06 194.2 209.2 2.07 14.9 14.2 14.2
SOVY 14.84 187.8 187.8 - 11.2 11.4 11.4
SRCK 47.20 229.1 253.5 1.75 16.2 16.6 16.6
SRTB 16.80 135.8 135.8 1.25 15.5 14.6 14.6
STYB 284.72 281.3 326.4 1.79 20.0 19.6 19.6
TBLC 13.52 194.6 194.6 - 13.8 12.5 12.5
TOBC 30.96 167.7 167.7 1.26 13.6 14.0 14.0
TRIXX 56.05 112.6 112.6 3.78 9.2 9.2 9.2
UBFO 53.94 283.9 303.6 2.00 15.2 13.3 13.3
UNBO 216.24 300.5 328.1 1.71 21.7 22.8 22.8
UPBN 17.66 91.8 93.0 2.50 9.6 11.1 11.1
UVSP 160.89 163.5 167.5 2.22 12.6 12.0 12.0
VADO 28.69 183.8 183.8 1.03 13.8 13.9 13.9
VCBA 13.85 133.7 134.6 - 10.0 11.2 11.2
VNBC 6.75 85.5 85.5 - 29.2 23.3 23.3
VRBA 55.48 266.8 NA - 16.9 16.5 16.5
VTGB 20.51 167.5 167.5 - 17.1 13.4 13.4
WIBW 9.84 144.5 144.5 2.86 5.7 5.8 5.8
WMFR 7.00 84.5 84.5 1.65 14.5 14.3 14.3
WNNB 114.14 285.4 292.9 1.31 17.8 18.6 18.6
YAVY 108.55 365.6 NA 1.16 22.0 22.3 22.3
YOBK 10.03 124.8 124.8 - 14.3 12.9 12.9
Maximum 1,399.20 430.0 328.1 10.13 29.2 23.3 23.3
Minimum 2.64 45.8 58.7 - 3.6 4.3 4.3
Average 58.52 159.2 159.1 2.24 12.8 12.7 12.7
Median 30.56 153.9 155.6 2.18 12.5 12.5 12.5
Price/ Tangible
LTM Total Equity/ Equity/
Core EPS Assets Assets T Assets
(x) ($000) (%) (%)
Ticker LTM MRQ MRQ MRQ
PLBA 12.7 150,532 8.0 NA
PNBF 6.8 186,704 10.5 10.5
PPBK 18.5 199,010 15.5 15.5
PRFS 16.0 593,849 9.0 8.9
PSBT 10.8 396,528 10.3 10.3
PSEB 14.0 230,385 7.8 7.8
PSHR 14.9 897,535 10.4 9.8
PWOD 13.6 262,065 13.2 13.2
QNBC 16.3 288,415 7.9 7.9
RBNF 14.5 442,336 9.5 9.3
SBGA 13.0 140,869 11.1 11.3
SBHC 10.2 170,278 8.1 7.9
SBTL 8.7 174,935 11.0 11.0
SBVA 13.7 122,207 11.6 11.6
SFBC 11.2 290,802 6.9 5.9
SLFI 16.6 759,185 9.3 9.3
SLNB 9.2 76,031 9.8 9.8
SMAL 10.4 94,452 12.9 12.9
SMTB 6.6 191,915 7.6 7.6
SOJB 9.2 448,599 9.1 9.1
SOMC 14.2 235,354 10.1 9.4
SOVY 11.4 95,994 8.2 8.2
SRCK 16.6 194,155 10.6 9.7
SRTB 14.6 122,944 9.9 9.9
STYB 19.6 832,508 12.2 10.7
TBLC 12.5 79,264 8.8 8.8
TOBC 14.0 153,079 11.9 11.9
TRIXX 9.2 436,499 11.4 11.4
UBFO 13.3 189,630 10.0 9.4
UNBO 22.8 799,676 9.1 8.4
UPBN 11.1 223,454 8.6 8.5
UVSP 12.0 916,687 10.7 10.5
VADO 13.9 194,800 8.0 8.0
VCBA 11.2 129,241 8.0 8.0
VNBC 23.3 120,002 6.6 6.6
VRBA 16.5 179,354 11.6 NA
VTGB 13.4 127,729 9.6 9.6
WIBW 5.8 73,724 9.2 9.2
WMFR 14.3 25,992 31.9 31.9
WNNB 18.6 334,692 12.0 11.7
YAVY 22.3 290,558 10.2 NA
YOBK 12.9 80,379 10.0 10.0
Maximum 23.3 7,068,470 31.9 31.9
Minimum 4.3 25,992 5.3 5.3
Average 12.7 352,247 9.9 9.9
Median 12.5 209,037 9.6 9.4
8
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
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ROAA ROACE ROAA ROACE
Core Before Before NPAs/ Core Before Before
EPS Extra Extra Merger Current Assets EPS Extra Extra
($) (%) (%) Target? Pricing (%) ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ MRQ MRQ MRQ
AANB 1.18 1.20 15.85 N 05/22/96 3.04 0.28 1.09 14.20
ABCU 0.09 0.62 9.29 N 06/20/97 1.72 0.02 0.52 8.00
ACNB 1.36 1.53 14.95 N 06/20/97 0.41 0.32 1.46 13.82
AMNB 2.09 1.61 13.26 N 06/20/97 0.06 0.47 1.43 11.72
ASTXX 1.46 2.16 20.83 N 05/30/97 NA 0.36 2.15 20.07
ATLV 2.40 1.23 10.61 N 06/20/97 0.33 0.52 0.91 8.50
BALX 0.83 0.80 7.89 N 06/20/97 4.03 0.23 0.80 8.37
BATH 2.53 1.33 11.61 N 06/20/97 0.22 0.60 1.23 10.83
BCDO 0.75 1.55 17.43 N 06/20/97 3.56 0.25 2.02 22.51
BCNB 41.50 1.13 13.35 N 06/20/97 1.11 13.20 1.31 14.61
BCSV 0.71 1.02 10.58 N 06/20/97 0.38 0.15 0.73 7.61
BDGE 2.23 1.55 19.39 N 06/20/97 0.54 0.54 1.44 17.73
BHBS 3.79 1.99 18.37 N 06/20/97 1.01 0.94 1.82 16.40
BKHB 0.74 1.22 8.36 N 06/20/97 0.14 0.19 1.19 8.16
BKTI 1.24 1.56 15.65 N 06/20/97 0.07 0.29 1.45 14.17
BLCA 2.07 1.39 15.13 N 06/20/97 0.86 0.58 1.58 18.15
BMRC 1.68 1.15 13.93 N 06/20/97 0.01 0.38 1.01 12.07
BNKA 0.96 1.76 15.67 N 06/20/97 NA 0.24 1.66 14.36
BPLU 1.88 0.94 13.37 N 06/20/97 0.04 0.49 0.91 12.84
BSMR 1.33 1.33 12.89 N 06/20/97 0.72 0.35 1.30 12.74
BVNC 2.35 1.11 13.42 N 06/20/97 NA 0.57 0.92 11.22
BWCF 1.56 1.29 12.92 N 06/20/97 0.13 0.43 1.35 14.19
BWCK 1.11 0.83 4.36 N 06/20/97 5.87 0.25 0.75 3.86
BWND 0.78 0.58 8.55 N 06/16/97 1.54 0.20 0.62 8.95
BYAR 1.33 1.44 16.30 N 06/20/97 1.43 0.40 1.49 16.52
BYLK 1.89 1.26 12.48 N 06/20/97 0.89 0.46 1.23 12.18
CADL 1.61 1.19 10.12 N 06/20/97 0.61 0.46 1.40 11.88
CAFP 2.57 1.22 15.02 N 06/20/97 0.18 0.69 1.33 15.90
CAPXX 1.13 0.92 12.04 N 06/16/97 NA 0.29 0.88 11.86
CBAN 2.28 1.08 13.33 N 06/16/97 2.45 0.77 1.43 17.15
CBIV 1.57 1.86 17.83 N 06/20/97 0.43 0.37 1.61 14.68
CBTN 15.61 1.57 13.05 N 06/20/97 NA 4.05 1.64 13.51
CCBN 1.23 1.45 15.95 N 06/20/97 0.30 0.30 1.44 15.71
CCFN 1.39 1.14 9.61 N 06/20/97 0.06 0.35 1.17 9.66
CCNE 2.28 1.28 10.40 N 06/20/97 0.28 0.47 1.05 8.97
CESR 1.24 1.12 13.13 N 06/20/97 1.44 0.33 1.15 13.72
CFCXX 1.22 1.78 13.78 N 06/16/97 0.37 0.37 1.84 14.43
CHMG 2.93 1.17 11.20 N 06/20/97 0.33 0.71 1.11 10.57
CIBN 1.91 1.60 17.66 N 05/22/96 1.52 0.46 1.47 15.88
CIWV 2.33 1.26 11.04 N 06/20/97 0.28 0.52 1.24 10.59
CLDB 3.81 1.12 11.97 N 06/20/97 NA 0.98 1.13 11.75
CMTV 1.53 1.10 12.31 N 06/20/97 1.57 0.35 1.02 10.91
CNAF 2.08 1.43 11.57 N 05/22/96 0.14 0.52 1.41 11.07
CNBB 1.90 1.43 11.20 N 06/20/97 0.32 0.48 1.44 11.12
CNBC 1.92 1.20 15.83 N 05/22/96 - 0.55 1.36 17.63
CNBD 1.94 1.17 14.39 N 06/20/97 - 0.51 1.19 15.88
CPKF 1.90 1.19 14.00 N 06/20/97 0.48 0.41 0.99 11.70
CSBB 3.04 1.68 17.88 N 06/20/97 0.19 0.80 1.81 19.59
CSVG 1.26 0.78 9.60 N 06/16/97 0.76 0.29 0.69 8.78
9
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
ROAA ROACE ROAA ROACE
Core Before Before NPAs/ Core Before Before
EPS Extra Extra Merger Current Assets EPS Extra Extra
($) (%) (%) Target? Pricing (%) ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ MRQ MRQ MRQ
CTLN 1.42 1.30 11.49 N 06/20/97 0.17 0.33 1.20 10.38
CTVN 2.16 1.63 10.67 N 06/16/97 0.59 0.55 1.52 10.05
CTZV 5.46 1.07 10.72 N 06/16/97 NA 1.43 0.99 9.74
CVIC 1.69 1.40 11.78 N 06/20/97 1.32 0.51 1.64 13.96
CVLY 2.41 1.15 12.38 N 04/24/97 1.20 0.49 1.02 10.81
CWBS 0.74 0.74 8.43 N 06/20/97 6.17 0.16 0.60 6.73
CYBK 5.02 1.73 15.80 N 06/20/97 0.42 1.30 1.76 15.81
CYFN 1.35 1.22 14.75 N 05/22/96 0.27 0.35 1.24 14.77
CZFS 2.23 1.25 15.45 N 06/20/97 0.55 0.46 1.72 20.70
CZNC 1.82 1.62 14.42 N 06/20/97 NA 0.45 1.82 15.54
DCBF 1.10 1.55 15.44 N 06/20/97 0.26 0.27 1.47 14.54
DEBC 2.89 1.19 10.55 N 06/20/97 3.82 0.77 1.24 10.53
DIMC 2.18 1.21 12.69 N 06/20/97 NA 0.50 1.07 11.05
DNBF 3.60 1.24 16.03 N 06/20/97 1.86 0.93 1.24 15.58
DROV 1.70 1.20 13.67 N 06/20/97 0.54 0.45 1.22 14.33
EMBM 2.55 1.21 14.86 N 06/20/97 0.78 0.63 1.19 14.39
EPNB 1.52 1.57 11.57 N 06/20/97 NA 0.40 1.62 11.79
EVGS 1.20 0.65 7.69 N 06/20/97 NA 0.32 0.63 7.68
EVNXX 4.94 1.21 11.16 N 06/16/97 0.14 1.29 1.20 11.26
FBMI 2.71 1.25 15.26 N 06/20/97 0.10 0.70 1.21 14.85
FBSYA 1.35 1.11 13.43 N 06/20/97 0.09 0.33 1.11 12.97
FBTT 5.31 1.07 18.40 N 06/20/97 0.15 1.46 1.11 18.99
FCBN 20.57 1.04 16.04 N 06/20/97 0.18 5.13 0.97 14.38
FCFT 2.71 1.75 16.21 N 06/20/97 1.19 0.65 1.79 16.34
FDDB 3.60 1.14 12.43 N 06/20/97 0.58 0.96 1.20 12.82
FDNM 3.65 1.19 16.05 N 06/20/97 NA 1.00 1.40 19.35
FETM 4.49 1.29 13.69 N 06/20/97 NA 1.02 1.16 12.09
FGYH 1.03 1.68 24.34 N 06/16/97 0.76 0.24 1.50 20.99
FINN 211.56 1.13 15.64 N 06/20/97 NA 41.73 0.83 11.74
FIOW 2.67 1.28 11.70 N 06/20/97 0.12 0.65 1.31 11.66
FIVR 49.09 1.05 10.98 N 06/20/97 NA 11.33 0.95 9.78
FJMY 3.73 0.97 10.91 N 06/20/97 0.86 0.92 1.02 11.07
FKYS 4.41 1.79 16.32 N 06/20/97 0.16 1.15 1.83 16.13
FLHI 0.43 2.79 48.68 N 06/20/97 6.53 0.23 3.81 62.97
FLLC 0.62 0.78 7.29 N 06/20/97 0.79 0.25 1.11 11.41
FMBH 4.43 0.85 11.12 N 06/20/97 0.40 1.16 0.99 11.96
FMNB 1.24 1.26 11.64 N 06/20/97 0.17 0.30 1.18 11.42
FNAN 155.10 2.18 9.23 N 06/20/97 0.45 42.36 2.35 9.90
FNBB 2.37 0.97 9.09 N 06/16/97 1.22 0.55 0.87 8.13
FNBL 2.88 0.83 11.81 N 06/16/97 1.06 0.61 0.68 10.12
FNBP 3.13 1.35 14.58 N 06/20/97 0.27 0.74 1.29 13.77
FNLB 3.56 1.09 12.44 N 06/20/97 NA 1.01 1.20 13.67
FOBT 2.34 1.24 13.79 N 06/20/97 0.20 0.60 1.25 13.78
FPHN 5.85 1.28 12.29 N 06/20/97 0.34 1.58 1.39 12.82
FRAF 2.18 1.29 12.03 N 06/20/97 0.34 0.56 1.35 12.84
FRMS 4.41 1.15 13.61 N 06/20/97 0.60 1.33 1.38 15.80
FWCC 1.88 1.13 13.71 N 06/20/97 0.45 0.48 1.11 13.17
FWEH 0.58 1.60 16.13 N 06/20/97 1.13 0.12 1.50 13.99
FXNC 1.92 1.07 10.37 N 06/20/97 0.63 0.46 1.01 9.81
10
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
ROAA ROACE ROAA ROACE
Core Before Before NPAs/ Core Before Before
EPS Extra Extra Merger Current Assets EPS Extra Extra
($) (%) (%) Target? Pricing (%) ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ MRQ MRQ MRQ
GABS 0.90 0.95 8.79 N 06/16/97 0.30 0.19 0.73 7.05
GBFP 1.25 0.99 13.43 N 06/20/97 0.66 0.31 0.87 11.82
GFLS 1.22 0.98 12.31 N 05/20/97 1.50 0.28 1.02 12.41
GLBT 1.87 0.80 14.95 N 05/22/96 0.89 0.27 0.86 12.91
GRBC 1.31 0.67 12.22 N 06/20/97 0.57 0.16 0.44 7.28
GREXX 1.62 1.18 12.44 N 06/16/97 NA 0.41 1.10 11.83
GRGN 4.01 1.45 14.12 N 06/16/97 0.20 0.97 1.35 13.05
GRYB 1.18 1.10 10.30 N 06/20/97 0.16 0.26 1.03 9.35
HABN 0.92 0.68 8.76 N 06/20/97 1.93 0.26 0.79 9.44
HBKS 1.16 1.28 16.13 N 06/20/97 0.57 0.31 1.26 16.23
HBNC 5.09 0.99 11.36 N 06/20/97 0.23 1.06 0.81 9.11
HBSI 4.09 1.14 10.29 N 06/20/97 0.08 0.93 1.07 9.57
HEOP 1.37 1.20 13.97 N 06/20/97 1.54 0.36 1.21 14.48
HOVB 1.05 1.03 11.33 N 06/20/97 0.10 0.27 0.97 10.91
HRFD 5.07 1.52 15.29 N 06/20/97 1.32 1.50 1.80 17.19
HTLF 1.55 1.08 11.22 N 06/20/97 0.32 0.35 1.04 10.74
IBDB 0.94 0.96 9.90 N 06/20/97 0.19 0.28 1.10 11.70
IBNC 3.98 1.45 16.89 N 06/20/97 NA 1.10 1.50 17.70
IFNC 5.62 0.14 1.81 N 06/20/97 NA 1.83 1.04 14.71
IFST 1.98 1.28 14.56 N 06/20/97 0.50 0.49 1.23 13.73
JFBC 1.64 1.02 9.82 N 06/20/97 2.45 0.42 0.99 9.54
JUVF 2.49 1.32 10.66 N 06/20/97 0.18 0.62 1.30 10.31
LAYB 1.96 1.07 12.40 N 06/20/97 0.11 0.52 1.10 12.80
LKFN 2.24 1.08 17.61 N 06/20/97 NA 0.61 1.10 17.17
LNBB 1.41 1.40 13.98 N 06/20/97 0.13 0.36 1.38 13.67
LNBS 2.00 1.48 14.98 N 06/16/97 0.17 0.52 1.55 15.32
MBKT 3.31 1.88 16.07 N 06/20/97 0.54 0.79 1.72 14.62
MCBF 1.01 0.94 12.18 N 06/20/97 0.06 0.22 0.75 9.55
MFRM 2.17 0.98 8.77 N 06/20/97 0.13 0.58 1.04 9.05
MGNB 1.91 1.57 15.93 N 06/20/97 0.43 0.48 1.63 15.98
MIPN 2.70 1.69 14.60 N 06/20/97 1.04 0.67 1.67 14.13
MMBI 1.93 0.51 5.20 N 06/20/97 0.28 0.32 0.45 4.63
MSHN 1.45 0.73 7.01 N 06/20/97 0.15 0.43 0.85 8.13
MTMB 1.50 1.05 11.93 N 06/20/97 0.30 0.35 0.92 10.94
MTTB 0.91 0.80 9.99 N 06/20/97 1.47 0.43 1.42 17.44
NBOH 1.95 1.28 9.05 N 06/20/97 0.27 0.49 1.27 8.95
NECA 4.54 1.21 13.84 N 06/20/97 NA 1.06 1.09 12.22
NKSH 1.62 1.61 14.15 N 06/20/97 0.21 0.40 1.57 11.74
NOAB 0.17 0.37 4.22 N 06/16/97 5.93 0.07 0.58 6.48
NOTW 2.42 1.34 12.23 N 06/20/97 2.42 0.57 1.27 11.47
NOVB 2.16 1.66 17.97 N 06/20/97 0.67 0.55 1.68 17.98
OHSB 2.42 0.69 9.44 N 06/20/97 0.16 0.61 0.69 9.25
ORRB 2.32 1.46 14.88 N 06/20/97 NA 0.57 1.41 14.11
PABN 1.87 1.39 11.93 N 12/13/96 0.80 0.50 1.35 12.06
PACXX 4.36 1.24 14.65 N 06/16/97 0.03 1.00 1.16 12.97
PAHC 1.22 1.12 12.74 N 06/20/97 1.68 0.29 0.98 11.18
PCHB 1.39 1.01 11.52 N 06/20/97 1.16 0.30 0.87 9.81
PCLF 6.30 2.07 15.05 N 06/20/97 0.39 1.58 2.02 14.48
PFCY 1.96 1.13 8.79 N 06/16/97 0.29 0.59 1.46 11.28
11
FERGUSON & COMPANY Exhibit VIII.1 - Selected Publicly Held Pink Sheet Banks
- ------------------
ROAA ROACE ROAA ROACE
Core Before Before NPAs/ Core Before Before
EPS Extra Extra Merger Current Assets EPS Extra Extra
($) (%) (%) Target? Pricing (%) ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ MRQ MRQ MRQ
PLBA 1.10 1.11 13.70 N 06/20/97 NA 0.27 0.96 11.97
PNBF 1.69 2.06 21.31 N 06/20/97 5.94 0.36 2.03 19.39
PPBK 1.23 1.74 11.30 N 06/20/97 NA 0.34 1.87 12.09
PRFS 1.06 1.28 13.43 N 06/20/97 0.09 0.30 1.37 13.97
PSBT 8.54 1.15 11.38 N 06/20/97 0.41 2.18 1.17 11.46
PSEB 1.16 0.76 10.11 N 06/20/97 1.19 0.31 0.86 11.43
PSHR 2.49 1.11 10.46 N 06/20/97 0.24 0.64 1.10 10.30
PWOD 3.69 2.48 20.18 N 06/20/97 0.35 0.92 3.02 24.09
QNBC 1.90 1.03 12.92 N 06/20/97 1.16 0.49 1.18 14.30
RBNF 2.27 1.19 12.23 N 06/20/97 0.32 0.59 1.22 12.61
SBGA 1.19 1.84 16.14 N 10/18/96 0.11 0.22 1.33 11.88
SBHC 0.86 1.39 16.17 N 09/13/96 0.55 0.22 1.47 17.66
SBTL 7.34 1.29 11.86 N 06/20/97 NA 2.05 1.19 10.96
SBVA 1.11 1.15 10.50 N 06/20/97 0.67 0.30 1.34 11.82
SFBC 0.87 0.92 12.96 N 06/20/97 2.02 0.20 0.87 12.67
SLFI 1.55 1.33 14.71 N 06/20/97 0.21 0.41 1.36 14.83
SLNB 2.09 1.10 11.52 N 06/20/97 2.10 0.50 1.04 10.68
SMAL 3.19 1.63 12.49 N 06/20/97 1.37 0.82 1.63 12.66
SMTB 5.29 1.30 17.11 N 06/20/97 2.95 1.84 1.74 22.23
SOJB 4.50 1.21 13.24 N 06/20/97 1.33 1.15 1.14 12.46
SOMC 3.28 1.45 14.36 N 06/20/97 0.14 0.78 1.26 13.77
SOVY 2.19 1.39 16.07 N 06/20/97 0.48 0.56 1.28 15.24
SRCK 2.07 1.51 14.08 N 06/20/97 0.71 0.53 1.46 13.86
SRTB 1.02 1.06 10.16 N 06/20/97 1.17 0.24 0.92 9.21
STYB 2.24 1.82 14.50 N 06/20/97 0.51 0.55 1.64 13.40
TBLC 0.97 1.12 13.74 N 06/16/97 0.38 0.22 0.91 10.37
TOBC 2.60 1.69 14.40 N 06/20/97 0.52 0.67 1.90 15.90
TRIXX 2.44 1.44 12.94 N 06/16/97 0.17 0.61 1.40 12.38
UBFO 1.92 2.04 18.60 N 06/20/97 3.86 0.42 1.77 16.25
UNBO 1.45 1.07 11.96 N 06/20/97 0.20 0.38 1.12 12.33
UPBN 6.42 0.62 7.37 N 06/20/97 1.12 1.85 0.75 8.80
UVSP 3.22 1.33 12.67 N 06/20/97 0.61 0.77 1.32 12.32
VADO 1.23 0.84 10.30 N 06/20/97 1.01 0.31 0.81 9.96
VCBA 1.08 1.00 11.70 N 06/20/97 0.06 0.30 1.01 12.30
VNBC 0.15 0.21 3.25 N 06/20/97 0.89 0.03 0.18 2.69
VRBA 0.94 2.00 17.17 N 06/20/97 0.07 0.23 1.89 16.18
VTGB 2.24 1.42 14.85 N 06/20/97 0.90 0.44 1.56 15.63
WIBW 2.51 1.40 15.37 N 06/20/97 1.27 0.64 1.39 15.06
WMFR 1.26 1.94 6.33 N 06/20/97 - 0.31 1.89 6.09
WNNB 1.34 1.50 12.81 N 12/31/96 - 0.35 1.56 13.10
YAVY 1.34 1.65 16.87 N 06/20/97 NA 0.34 1.67 16.60
YOBK 0.93 0.87 8.96 N 06/20/97 0.41 0.21 0.86 8.80
Maximum 211.56 2.79 48.68 6.53 42.36 3.81 62.97
Minimum 0.09 0.14 1.81 - 0.02 0.18 2.69
Average 4.76 1.26 13.08 0.89 1.17 1.27 13.03
Median 1.92 1.21 12.92 0.45 0.48 1.23 12.41
12
FERGUSON & COMPANY Exhibit VIII.2 - Selected Publicly Held Southeast Pink Sheet Banks
- ------------------
Current
Stock
Price
Ticker Short Name City State Region Exchange IPO Date ($)
CBAN Colony Bankcorp Inc. Fitzgerald GA SE Pink Sh NA 24.000
GABS Georgia Bancshares Inc. Tucker GA SE Pink Sh NA 12.000
GBFP Georgia Bank Financial Corp. Augusta GA SE Pink Sh NA 19.625
LNBS Lanier Bankshares Inc. Gainesville GA SE OTC Bul NA 19.500
PCLF Pinnacle Financial Corp. Elberton GA SE Pink Sh NA 62.500
SBGA Summit Bank Corporation Atlanta GA SE OTC Bul NA 14.750
CAFP Carolina First Bancshares Lincolnton NC SE Pink Sh NA 38.000
FOBT Four Oaks Bank & Trust Co. Four Oaks NC SE OTC Bul NA 26.500
GRYB Guaranty State Bancorp Durham NC SE OTC Bul NA 22.375
MFRM Mechanics and Farmers Bank Durham NC SE OTC Bul NA 15.000
YAVY Yadkin Valley Bank & Trust Co. Elkin NC SE Pink Sh NA 31.000
FCBN First Citizens Bancorp. of SC Columbia SC SE OTC Bul NA 221.000
GREXX Greer State Bank Greer SC SE Pink Sh NA 23.000
CBTN CB&T Inc. McMinnville TN SE OTC Bul NA 115.000
PSHR Pioneer Bancshares Inc. Chattanooga TN SE OTC Bul NA 38.500
AMNB American National Bankshares Danville VA SE OTC Bul NA 26.250
BALX Bank of Alexandria Alexandria VA SE OTC Bul NA 13.000
BKTI Bank of Tidewater Virginia Beach VA SE OTC Bul NA 20.000
CBIV Community Bankshares Inc. Petersburg VA SE OTC Bul NA 17.750
CFCXX C&F Financial Corp. West Point VA SE Pink Sh NA 20.250
CPKF Chesapeake Financial Shares Kilmarnock VA SE OTC Bul NA 15.000
CWBS Commonwealth Bankshares Inc. Norfolk VA SE OTC Bul NA 10.500
FNBP FNB Corp. Christiansburg VA SE Pink Sh NA 40.000
FXNC First National Corp. Strasburg VA SE OTC Bul NA 21.750
HBKS Heritage Bankshares Inc. Norfolk VA SE OTC Bul NA 12.500
NKSH National Bankshares Inc. Blacksburg VA SE OTC Bul NA 24.500
SBVA Salem Bank and Trust NA Salem VA SE OTC Bul NA 16.000
VCBA Virginia Commerce Bank Arlington VA SE OTC Bul NA 13.125
CIWV Citizens Financial Corp. Elkins WV SE OTC Bul NA 26.000
FCFT FCFT Inc. Princeton WV SE OTC Bul NA 31.000
HBSI Highlands Bankshares Inc. Petersburg WV SE OTC Bul NA 45.000
PCHB Pocahontas Bankshares Corp. Bluefield WV SE OTC Bul NA 19.000
Maximum 221.000
Minimum 10.500
Average 32.949
Median 22.063
13
FERGUSON & COMPANY Exhibit VIII.2 - Selected Publicly Held Southeast Pink Sheet Banks
- ------------------
Price/ Price/ Price/ Price/
Current Current Current Current Core Core LTM LTM
Market Price/ Price/T Dividend EPS EPS Core EPS Core EPS
Value Book V Book V Yield (x) (x) (x) (x)
Ticker ($M) (%) (%) (%) MRQ LTM MRQ LTM
CBAN 34.77 131.8 134.9 1.25 7.3 9.9 9.9 9.9
GABS 7.01 115.9 115.9 1.67 15.8 13.3 13.3 13.3
GBFP 30.27 183.1 192.4 - 15.3 15.2 15.2 15.2
LNBS 12.05 140.5 140.5 1.28 9.4 9.8 9.8 9.8
PCLF 48.00 143.1 143.1 2.88 9.9 9.9 9.9 9.9
SBGA 20.76 132.3 130.0 2.17 17.6 13.0 13.0 13.0
CAFP 78.08 216.4 218.1 1.26 12.3 13.2 13.2 13.2
FOBT 22.26 152.1 154.0 2.11 10.1 10.3 10.3 10.3
GRYB 19.72 186.9 186.9 1.61 22.4 19.7 19.7 19.7
MFRM 8.54 58.4 58.7 5.20 6.1 6.5 6.5 6.5
YAVY 108.55 365.6 NA 1.16 22.0 22.3 22.3 22.3
FCBN 197.31 152.3 NA - 9.8 9.7 9.7 9.7
GREXX 14.40 165.7 165.7 - 14.6 14.8 14.8 14.8
CBTN 30.42 96.1 96.1 8.70 7.1 7.4 7.4 7.4
PSHR 144.76 154.6 165.7 2.39 14.5 14.9 14.9 14.9
AMNB 86.09 163.4 176.7 3.20 12.5 11.2 11.2 11.2
BALX 8.92 122.1 122.1 - 14.5 16.1 16.1 16.1
BKTI 35.97 231.8 231.8 5.00 19.0 17.7 17.7 17.7
CBIV 33.74 175.6 175.6 1.13 11.7 11.0 11.0 11.0
CFCXX 42.79 130.2 139.2 3.16 13.7 16.6 16.6 16.6
CPKF 12.59 103.8 104.4 2.13 9.2 7.9 7.9 7.9
CWBS 10.55 109.8 109.8 - 16.8 14.5 14.5 14.5
FNBP 66.48 175.0 175.0 3.50 12.8 12.1 12.1 12.1
FXNC 16.86 112.4 112.4 3.22 11.4 10.9 10.9 10.9
HBKS 9.86 156.3 156.3 - 9.4 10.0 10.0 10.0
NKSH 92.92 176.9 180.3 2.69 16.3 16.1 16.1 16.1
SBVA 21.30 150.1 150.1 1.81 12.7 13.7 13.7 13.7
VCBA 13.85 133.7 134.6 - 10.0 11.2 11.2 11.2
CIWV 17.77 117.1 NA 1.54 12.5 11.2 11.2 11.2
FCFT 175.15 193.3 202.2 3.61 12.2 11.7 11.7 11.7
HBSI 22.59 113.4 113.4 2.22 12.0 10.9 10.9 10.9
PCHB 38.00 153.9 156.3 3.16 15.8 13.7 13.7 13.7
Maximum 197.31 365.6 231.8 8.70 22.4 22.3 22.3 22.3
Minimum 7.01 58.4 58.7 - 6.1 6.5 6.5 6.5
Average 46.32 153.5 149.7 2.13 13.0 12.7 12.7 12.7
Median 26.43 151.1 150.1 1.96 12.5 11.9 11.9 11.9
Tangible
Total Equity/ Equity/
Assets Assets T Assets
($000) (%) (%)
Ticker MRQ MRQ MRQ
CBAN 322,822 8.2 8.0
GABS 58,920 10.3 10.3
GBFP 236,892 7.0 6.7
LNBS 82,799 10.4 10.4
PCLF 241,786 13.9 13.9
SBGA 140,869 11.1 11.3
CAFP 443,571 8.1 8.1
FOBT 167,635 8.7 8.6
GRYB 97,946 10.8 10.8
MFRM 129,048 11.3 11.3
YAVY 290,558 10.2 NA
FCBN 2,018,266 6.8 NA
GREXX 95,433 9.1 9.1
CBTN 265,427 11.9 11.9
PSHR 897,535 10.4 9.8
AMNB 430,900 12.2 11.4
BALX 75,024 9.7 9.7
BKTI 148,091 10.5 10.5
CBIV 173,331 11.1 11.1
CFCXX 253,675 13.0 12.2
CPKF 141,360 8.6 8.5
CWBS 104,117 9.2 9.2
FNBP 391,282 9.5 9.5
FXNC 148,890 10.1 10.1
HBKS 82,746 7.6 7.6
NKSH 392,878 13.4 13.2
SBVA 122,207 11.6 11.6
VCBA 129,241 8.0 8.0
CIWV 128,000 11.9 NA
FCFT 833,058 10.9 10.5
HBSI 181,476 11.0 11.0
PCHB 277,611 8.9 8.8
Maximum 2,018,266 13.9 13.9
Minimum 58,920 6.8 6.7
Average 296,981 10.2 10.1
Median 170,483 10.3 10.3
14
FERGUSON & COMPANY Exhibit VIII.2 - Selected Publicly Held Southeast Pink Sheet
- ------------------ Banks
ROAA ROACE ROAA ROACE
Core Before Before NPAs/ Core Before Before
EPS Extra Extra Merger Current Assets EPS Extra Extra
($) (%) (%) Target? Pricing (%) ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ MRQ MRQ MRQ
CBAN 2.28 1.08 13.33 N 06/16/97 2.45 0.77 1.43 17.15
GABS 0.90 0.95 8.79 N 06/16/97 0.30 0.19 0.73 7.05
GBFP 1.25 0.99 13.43 N 06/20/97 0.66 0.31 0.87 11.82
LNBS 2.00 1.48 14.98 N 06/16/97 0.17 0.52 1.55 15.32
PCLF 6.30 2.07 15.05 N 06/20/97 0.39 1.58 2.02 14.48
SBGA 1.19 1.84 16.14 N 10/18/96 0.11 0.22 1.33 11.88
CAFP 2.57 1.22 15.02 N 06/20/97 0.18 0.69 1.33 15.90
FOBT 2.34 1.24 13.79 N 06/20/97 0.20 0.60 1.25 13.78
GRYB 1.18 1.10 10.30 N 06/20/97 0.16 0.26 1.03 9.35
MFRM 2.17 0.98 8.77 N 06/20/97 0.13 0.58 1.04 9.05
YAVY 1.34 1.65 16.87 N 06/20/97 NA 0.34 1.67 16.60
FCBN 20.57 1.04 16.04 N 06/20/97 0.18 5.13 0.97 14.38
GREXX 1.62 1.18 12.44 N 06/16/97 NA 0.41 1.10 11.83
CBTN 15.61 1.57 13.05 N 06/20/97 NA 4.05 1.64 13.51
PSHR 2.49 1.11 10.46 N 06/20/97 0.24 0.64 1.10 10.30
AMNB 2.09 1.61 13.26 N 06/20/97 0.06 0.47 1.43 11.72
BALX 0.83 0.80 7.89 N 06/20/97 4.03 0.23 0.80 8.37
BKTI 1.24 1.56 15.65 N 06/20/97 0.07 0.29 1.45 14.17
CBIV 1.57 1.86 17.83 N 06/20/97 0.43 0.37 1.61 14.68
CFCXX 1.22 1.78 13.78 N 06/16/97 0.37 0.37 1.84 14.43
CPKF 1.90 1.19 14.00 N 06/20/97 0.48 0.41 0.99 11.70
CWBS 0.74 0.74 8.43 N 06/20/97 6.17 0.16 0.60 6.73
FNBP 3.13 1.35 14.58 N 06/20/97 0.27 0.74 1.29 13.77
FXNC 1.92 1.07 10.37 N 06/20/97 0.63 0.46 1.01 9.81
HBKS 1.16 1.28 16.13 N 06/20/97 0.57 0.31 1.26 16.23
NKSH 1.62 1.61 14.15 N 06/20/97 0.21 0.40 1.57 11.74
SBVA 1.11 1.15 10.50 N 06/20/97 0.67 0.30 1.34 11.82
VCBA 1.08 1.00 11.70 N 06/20/97 0.06 0.30 1.01 12.30
CIWV 2.33 1.26 11.04 N 06/20/97 0.28 0.52 1.24 10.59
FCFT 2.71 1.75 16.21 N 06/20/97 1.19 0.65 1.79 16.34
HBSI 4.09 1.14 10.29 N 06/20/97 0.08 0.93 1.07 9.57
PCHB 1.39 1.01 11.52 N 06/20/97 1.16 0.30 0.87 9.81
Maximum 20.57 2.07 17.83 6.17 5.13 2.02 17.15
Minimum 0.74 0.74 7.89 0.06 0.16 0.60 6.73
Average 2.94 1.30 12.99 0.76 0.73 1.26 12.38
Median 1.76 1.21 13.38 0.28 0.41 1.26 11.86
15
FERGUSON & COMPANY Exhibit VIII.3 - Selected Publicly Held Tennessee
- ------------------ Pink Sheet Banks
Current
Stock
Price
Ticker Short Name City State Region Exchange IPO Date ($)
CBTN CB&T Inc. McMinnville TN SE OTC Bul NA 115.000
PSHR Pioneer Bancshares Inc. Chattanooga TN SE OTC Bul NA 38.500
Maximum 115.000
Minimum 38.500
Average 76.750
Median 76.750
16
FERGUSON & COMPANY Exhibit VIII.3 - Selected Publicly Held Tennessee Pink Sheet Banks
- ------------------
Price/ Price/ Price/ Price/
Current Current Current Current Core Core LTM LTM
Market Price/ Price/ T Dividend EPS EPS Core EPS Core EPS
Value Book V Book V Yield (x) (x) (x) (x)
Ticker ($M) (%) (%) (%) MRQ LTM MRQ LTM
CBTN 30.42 96.1 96.1 8.70 7.1 7.4 7.4 7.4
PSHR 144.76 154.6 165.7 2.39 14.5 14.9 14.9 14.9
Maximum 144.76 154.6 165.7 8.70 14.5 14.9 14.9 14.9
Minimum 30.42 96.1 96.1 2.39 7.1 7.4 7.4 7.4
Average 87.59 125.3 130.9 5.54 10.8 11.1 11.1 11.1
Median 87.59 125.3 130.9 5.54 10.8 11.1 11.1 11.1
Tangible
Total Equity/ Equity/
Assets Assets T Assets
($000) (%) (%)
Ticker MRQ MRQ MRQ
CBTN 265,427 11.9 11.9
PSHR 897,535 10.4 9.8
Maximum 897,535 11.9 11.9
Minimum 265,427 10.4 9.8
Average 581,481 11.2 10.9
Median 581,481 11.2 10.9
17
FERGUSON & COMPANY Exhibit VIII.3 - Selected Publicly Held Tennessee Pink Sheet Banks
- ------------------
ROAA ROACE ROAA ROACE
Core Before Before NPAs/ Core Before Before
EPS Extra Extra Merger Current Assets EPS Extra Extra
($) (%) (%) Target? Pricing (%) ($) (%) (%)
Ticker LTM LTM LTM (Y/N) Date MRQ MRQ MRQ MRQ
CBTN 15.61 1.57 13.05 N 06/20/97 NA 4.05 1.64 13.51
PSHR 2.49 1.11 10.46 N 06/20/97 0.24 0.64 1.10 10.30
Maximum 15.61 1.57 13.05 0.24 4.05 1.64 13.51
Minimum 2.49 1.11 10.46 0.24 0.64 1.10 10.30
Average 9.05 1.34 11.76 0.24 2.35 1.37 11.91
Median 9.05 1.34 11.76 0.24 2.35 1.37 11.91
18
EXHIBIT IX
FERGUSON & COMPANY Exhibit IX - Other Thrifts Converting
- ------------------ to Stock and Commercial Banks
Heartland Community
IFB Bancshares, Financial
Holdings, Inc. Incorporated Corp.
Chillicothe, Herrin, Olney,
Missouri Illinois Illinois Average
---------------- -------------- ---------------- ---------------
Ticker IFBH HLAG CFIC
Stock conversion date 12/30/96 6/28/96 6/29/95
Conversion assets $ 52,587,000 $ 61,309,000 $ 164,633,000 $ 92,843,000
Conversion pricing ratios:
Price to book 73.1% 70.8% 76.4% 73.4%
Price to earnings 14.3 21.3 10.3 15.3
Price to assets 10.1% 12.8% 13.8% 12.2%
Conversion loan composition:
Non-real estate loans/loans 12.4% 3.7% 53.0% 23.0%
Loans/assets 54.1% 57.2% 67.6% 59.6%
Stock issue:
Shares issued 592,523 876,875 2,645,000 1,371,466
Price per share $ 10.00 $ 10.00 $ 10.00 $ 10.00
Gross proceeds $ 5,925,000 $ 8,768,750 $ 26,450,000 $ 13,714,583
Price June 20, 1997 $ 12.50 $ 16.00 $ 14.50 $ 14.33
Price appreciation:
One day 22.50% 0.00% 15.00% 12.5%
One week 25.00% 3.75% 16.25% 15.0%
One month 23.75% 1.25% 12.50% 12.5%
To date 25.00% 60.00% 45.00% 43.3%
Current pricing ratios:
Price to book 86.9% 113.3% 101.9% 100.7%
Price to earnings 13.0 40.0 20.7 24.6
1