Conversion Valuation Report
-------------------------------------
---------------------------
Valued as of September 2, 1997
NEWPORT FEDERAL SAVINGS BANK
Newport, Arkansas
Prepared By:
Ferguson & Company
Suite 550
122 W. John Carpenter Freeway
Irving, TX 75039
972/869-1177
STATEMENT OF APPRAISER'S INDEPENDENCE
Newport Federal Savings Bank
Newport, Arkansas
-----------------
We are the appraiser for Newport Federal Savings Bank ("Newport Federal"
or "Bank") in connection with its mutual to stock conversion. We are submitting
our independent estimate of the pro forma market value of the Bank's stock to be
issued in the conversion. In connection with our appraisal of the Bank's to-be-
issued stock, we have received a fee which was not related to the estimated
final value. The estimated pro forma market value is solely the opinion of our
company and it was not unduly influenced by the Bank, its conversion counsel,
its selling agent, or any other party connected with the conversion.
Newport Federal 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
Robin L. Fussell
Principal
September 8, 1997
September 8, 1997
Board of Directors
Newport Federal Savings Bank
200 Olivia Drive
Newport, Arkansas 72112
Dear Directors:
We have completed and hereby provide, as of September 2, 1997, an
independent appraisal of the estimated pro forma market value of Newport Federal
Savings Bank ("Newport Federal" or the "Bank"), Newport, Arkansas, in connection
with the conversion of Newport Federal from the mutual to stock form of
organization ("Conversion"). This appraisal report is furnished pursuant to the
regulatory filing of the Bank's Application for Conversion ("Form AC") with the
Office of Thrift Supervision ("OTS").
Ferguson & Company ("F&C") is a consulting firm that specializes in
providing financial, economic, and regulatory services to financial
institutions. The background and experience of F&C is presented in Exhibit I. We
believe that, except for the fees we will receive for preparing the appraisal,
we are independent. F&C personnel are prohibited from owning stock in conversion
clients for a period of at least one year after conversion.
In preparing our appraisal, we have reviewed Newport Federal's Application
for Approval of Conversion, including the Proxy Statement as filed with the OTS.
We conducted an analysis of Newport Federal that included discussions with KPMG
Peat Marwick LLP, the Bank's independent auditors, and with Housley Kantarian &
Bronstein, P.C., the Bank's conversion counsel. In addition, where appropriate,
we considered information based on other available published sources that we
believe is reliable; however, we cannot guarantee the accuracy or completeness
of such information.
We also reviewed the economy in Newport 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.
Our appraisal is based on Newport Federal's representation that the
information contained in the Form AC and additional evidence furnished to us by
the Bank and its independent auditors are truthful, accurate, and complete. We
did not independently verify the financial statements and other information
provided by Newport Federal and its auditors, nor did we independently value the
Bank's assets or liabilities. The valuation considers Newport Federal only as a
going concern and should not be considered an indication of its liquidation
value.
It is our opinion that, as of September 2, 1997, the estimated pro forma
market value of Newport Federal was $2,800,000, or 280,000 shares at $10.00 per
share. The resultant valuation range was $2,380,000 at the minimum (238,000
shares at $10.00 per share) to $3,220,000 at the maximum (322,000 shares at
$10.00 per share), based on a range of 15 percent below and above the midpoint
valuation. The supermaximum was $3,703,000 (370,300 shares at $10.00 per share).
Board of Directors
September 8, 1997
Page 2
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of common
stock in the conversion. Moreover, because such valuation is necessarily based
upon estimates and projections of a number of matters, all of which are subject
to change from time to time, no assurance can be given that persons who purchase
shares of common stock in the conversion will thereafter be able to sell such
shares at prices related to the foregoing estimate of the Bank's pro forma
market value. F&C is not a seller of securities within the meaning of any
federal or state securities laws and any report prepared by F&C shall not be
used as an offer or solicitation with respect to the purchase or sale of any
securities.
Our opinion is based on circumstances as of the date hereof, including
current conditions in the United States securities markets. Events occurring
after the date hereof, including, but not limited to, changes affecting the
United States securities markets and subsequent results of operations of Newport
Federal, 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 Newport Federal'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
Robin L. Fussell
Principal
FERGUSON & COMPANY
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TABLE OF CONTENTS
Newport Federal Savings Bank
Newport, Arkansas
PAGE
----
INTRODUCTION 1
SECTION I - FINANCIAL CHARACTERISTICS 1
PAST & PROJECTED ECONOMIC CONDITIONS 1
FINANCIAL CONDITION OF INSTITUTION 2
Balance Sheet Trends 2
Asset/Liability Management 2
Income and Expense Trends 2
Regulatory Capital Requirements 2
Lending 2
Nonperforming Assets 3
Classified Assets 3
Loan Loss Allowance 3
Mortgage-Backed Securities and Investments 3
Savings Deposits 3
Borrowings 3
Subsidiaries 4
Legal Proceedings 4
EARNINGS CAPACITY OF THE INSTITUTION 4
Asset-Size-Efficiency of Asset Utilization 4
Intangible Values 4
Effect of Government Regulations 4
Office Facilities 5
SECTION II - MARKET AREA 1
DEMOGRAPHICS 1
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TABLE OF CONTENTS - CONTINUED
Newport Federal Savings Bank
Newport, Arkansas
PAGE
----
SECTION III - COMPARISON WITH PUBLICLY TRADED THRIFTS 1
COMPARATIVE DISCUSSION 1
Selection Criteria 1
Profitability 2
Balance Sheet Characteristics 2
Risk Factors 2
Summary of Financial Comparison 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
ARKANSAS ACQUISITIONS 3
EFFECT OF INTEREST RATES ON THRIFT STOCK 4
Adjustments Conclusion 6
Valuation Approach 6
Valuation Conclusion 7
ii
FERGUSON & COMPANY
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TABLE OF CONTENTS - CONTINUED
Newport Federal Savings Bank
Newport, Arkansas
TABLE
NUMBER TABLE TITLE PAGE
- ------ ----------- -----
SECTION I - FINANCIAL CHARACTERISTICS
1 Selected Financial Data 6
2 Operating Ratios 7
3 Interest Rate Shock 8
4 Regulatory Capital Compliance 9
5 Loan Portfolio Composition 10
6 Loan Maturities 11
7 Loan Origination, Purchase, and Repayment Activity 12
8 Average Balances, Rates, and Yields 13
9 Rate/Volume Analysis 14
10 Non-Performing Assets 15
11 Analysis of the Allowance for Loan Losses 16
12 Allocation of Allowance for Loan Losses 17
13 Investment Securities 18
14 Investments at June 30, 1997 19
15 Deposit Portfolio 20
16 Savings Deposits Detail 21
17 Certificate of Deposit Maturities 22
18 Large CD Maturities 23
19 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 Characteristics 4
2 Key Financial Indicators 5
3 Pro Forma Comparisons 6
iii
FERGUSON & COMPANY
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TABLE OF CONTENTS - CONTINUED
Newport Federal Savings Bank
Newport, Arkansas
TABLE
NUMBER TABLE TITLE PAGE
- ------ ----------- ----
SECTION IV - CORRELATION OF MARKET VALUE
1 Appraisal Earnings Adjustments 2
2 Arkansas Acquisitions 8
3 Recent Conversions 11
4 Recent Pink Sheet Conversions 14
4 Comparison of Pricing Ratios 17
FIGURE
NUMBER LIST OF FIGURES
- ------ --------------- PAGE
----
SECTION IV - CORRELATION OF MARKET VALUE
1 SNL Index 18
2 Interest Rates 19
EXHIBIT TITLE
-------------
Exhibit I - Ferguson & Company Qualifications
Exhibit II - Selected Region, State, and Comparatives Information
Exhibit III - Newport 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
iv
SECTION I
FINANCIAL CHARACTERISTICS
FERGUSON & COMPANY Section I
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INTRODUCTION
Newport Federal Savings Bank ("Newport Federal" or "Bank") is a
federally chartered, federally insured mutual savings bank located in Newport
(Jackson County), Arkansas. It received its federal charter and insurance of
accounts and joined the Federal Home Loan Bank system in 1934. It adopted its
current name in 1995. In May 1997, the Board of Directors adopted a plan to
convert the Bank from the mutual to stock form of organization. In connection
with the conversion, the Bank will form a parent holding company to be known as
North Arkansas Bancshares, Inc. ("North Arkansas" or the "Holding Company").
North Arkansas will sell stock to the public and invest part of the proceeds in
exchange for all of the shares of stock issued by Newport Federal.
At June 30, 1997, Newport Federal had total assets of $34.4 million,
loans of $24.8 million, securities of $5.9 million, cash and time deposits in
other banks of $1.6 million, deposits of $31.1 million, borrowings of $.6
million, and net worth of $2.3 million, or 6.6% of assets.
The bank has one office, which is located in Newport (Jackson
County), Arkansas. Arkansas is in the southeastern portion of the United States.
Jackson County is located in the northeastern section of the State.
Newport Federal is a traditional thrift. It invests primarily in (1)
1-4 family loans, (2) investment securities (principally mortgage-backed
securities), and (3) 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 June 30, 1997, loans on 1-4 family dwellings made up 50.8% of
total assets and 70.1% of the loan portfolio. Consumer loans were 14.6% of the
loan portfolio and non-residential real estate loans were 14.5% of the loan
portfolio. Investment securities made up 17.2% of total assets. Cash and cash
equivalents made up 4.6% of Newport Federal's assets at June 30, 1997.
Newport Federal had $74,000 in non-performing assets at June 30,
1997, as compared to $154,000 at June 30, 1996.
Savings deposits increased $3.383 million during the period from June
30, 1993, to June 30, 1997, a compound annual growth rate of 2.92%. Savings
increased $1.885 million (6.79%) from June 30, 1995, to June 30, 1996, and
increased $1.416 million (4.77%) from June 30, 1996, to June 30, 1997. Newport
Federal has not relied extensively on borrowings during recent years. It had
$618 thousand in borrowings at June 30, 1997, $134 thousand at June 30, 1996,
and $149 thousand at June 30, 1995.
The Bank's capital to assets ratio has decreased slightly during the
period of four years ending June 30, 1997. Equity capital, as a percentage of
assets, has decreased from 6.66% at June 30, 1993, to 6.59% at June 30, 1997.
The compound annual asset growth rate was 3.62% during the period, while the
compound annual rate of growth for equity was 3.35%.
Newport Federal's profitability, as measured by return on average
assets ("ROAA"), has been up and down as compared to its peer group average of
thrifts filing TFR's with the OTS, consisting of OTS supervised thrifts with
assets between $25 million and $50 million. For the years ending December 31,
1994, 1995, and 1996, and the three months ending March 31, 1997, Newport
Federal ranked in the 50th, 36th, 14th, and 67th percentile, respectively, in
ROAA, based on information derived from the TAFS thrift database published by
Sheshunoff Information Services Inc. (See Exhibit III, page 2). In return on
equity for the same periods, Newport Federal ranked in the 73rd, 55th, 13th, and
88th percentile, respectively. However, the results for the three months ending
March 31, 1997 appear distorted because pretax income was $79,000 and there was
no income tax expense recorded.
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
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FERGUSON & COMPANY Section I
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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. Newport Federal's spread was 2.49% for the year ended June 30,
1996. It increased to 2.54% for the year ended June 30, 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. Newport Federal has a much lower exposure to interest
rate risk than the thrift industry in general.
FINANCIAL CONDITION OF INSTITUTION
Balance Sheet Trends
As Table I.1 shows, Newport Federal experienced moderate growth in
assets during the period of two years ending June 30, 1997. Assets increased
$3.922 million during the period (12.9%). Loans increased $4.642 million, or
23.0%. Investment securities, cash, and time deposits combined decreased $1.516
million, or 16.8% during the period. Savings deposits increased by $3.301
million, or 11.9%. Equity decreased $126 thousand, or 5.3%.
Asset/Liability Management
Managing interest rate risk is a major component of the strategy used
in operating a thrift. Most of a thrift's interest earning assets are long-term,
while most of the interest bearing liabilities have short to intermediate terms
to contractual maturity. To compensate, asset/liability management techniques
include (1) making long term loans with interest rates that adjust to market
periodically, (2) investing in assets with shorter terms to maturity, (3)
lengthening the terms to maturities of savings deposits, and (4) seeking to
employ any combination of the aforementioned techniques artificially through the
use of synthetic hedge instruments. Table I.3 provides rate shock information at
varying levels of interest rate change. The Bank has limited exposure to
interest rate increases, and its exposure will be further reduced through the
equity raised in the conversion.
Newport Federal's basic approach to interest rate risk management has
been to emphasize shorter term fixed rate mortgage loans, adjustable mortgage
loans, and short and intermediate term consumer loans, coupled with extending
deposit maturities. Newport Federal currently is not utilizing synthetic hedge
instruments and has not used borrowings extensively in recent years. Newport
Federal's business plan calls for emphasis on shorter term consumer and
commercial loans.
Income and Expense Trends
Newport Federal was profitable for the fiscal year ended June 30,
1996, but recorded a loss for the fiscal year ended June 30, 1997. Fluctuations
in income over the period have resulted principally from (1) changes in
non-interest expense, principally the SAIF assessment of approximately $179,000
in 1997; and (2) prior service costs of $286,000 in 1997 related to a directors'
retirement plan; and (3) additional loan loss provisions recorded in 1997, e.g.,
$90,000 in 1997 versus $10,000 in 1996.
Net interest income increased in the year ended June 30, 1997,
principally as a result of growth, as interest margins remained relatively
constant during the periods.
Regulatory Capital Requirements
As Table I.4 demonstrates, Newport 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, at June 30, 1996 and 1997,
Newport Federal's loan composition was dominated by 1-4 family dwelling loans.
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FERGUSON & COMPANY Section I
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Both non-residential real estate loans and consumer loans experienced healthy
growth from 1996 to 1997, while 1-4 dwelling loans remained constant in dollar
value but shrunk relative to the entire portfolio. Table I.6 provides
information on loan maturities and repricing opportunities at June 30, 1997. The
schedule shows that, at that date, approximately 61% of the portfolio was
scheduled to mature in more than five years and 45% was scheduled to mature in
more than ten years. The table also shows that 56% of total loans were
adjustable rate loans and 15% of total loans were consumer and commercial
non-real estate loans.
Table I.7 provides information with respect to loan originations.
It indicates that loan origination activity increased 53% from 1996 to 1997.
Table I.8 provides rates, yields, and average balances for each of
the two years ended June 30, 1997. Interest rates earned on interest-earning
assets decreased from 7.84% in 1996 to 7.70% in 1997. Interest rates paid on
interest-bearing liabilities decreased from 5.35% in 1996 to 5.16% 1997. Newport
Federal's spread increased from 2.49% in 1996 to 2.54% in 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 June 30, 1996 versus 1997. The table shows that
most of the decrease in net interest income from the year ended June 30, 1995 to
1996 resulted from rates, while most of the increase from June 30, 1996 to 1997
resulted from volume.
Non-performing Assets
As shown in Table I.10, the Bank had $74,000 in loans that were over
90 days delinquent at June 30, 1997. The Bank had ceased to accrue interest on
these loans. The Bank had $154 thousand in nonperforming assets at June 30,
1996.
Classified Assets
Newport Federal had $91 thousand in classified assets at June 30,
1997. All of the classified assets were classified as substandard. The Bank had
a loan loss allowance of $150,000, or 164.8% of classified assets at June 30,
1997.
Loan Loss Allowance
Table I.11 provides an analysis of Newport Federal's loan loss
allowance. Table I.12 shows the allocation of the loan loss allowance among the
various loan categories as of June 30 1996, and 1997.
Mortgage-Backed Securities and Investments
Table I.13 provides a breakdown of investments as of June 30, 1996,
and 1997. Table I.14 provides maturity and yield information for investments as
of June 30, 1997.
Savings Deposits
At June 30, 1997, Newport Federal's deposit portfolio was composed as
follows: Checking accounts--$2.978 million or 9.59%; passbook accounts--$1.893
million or 6.09%; and certificate accounts--$26.202 million or 84.32% (see Table
I.15). Table I.16 provides a break down of time deposits by rate ranges as of
June 30, 1995, 1996, and 1997. Table I.17 provides maturity information by rate
ranges for time deposits as of June 30, 1997. It shows that 41.17% of all time
deposits mature within one year and 79.19% mature within two years.
Newport Federal is not overly dependent on large certificates of
deposit. At June 30, 1997, the Bank had $3.361 million in certificates that were
issued for $100 thousand or more, or 10.82% of its total deposits (see Table
I.18).
Borrowings
Newport Federal has had only minor borrowings in recent years.
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FERGUSON & COMPANY Section I
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Subsidiaries
Newport Federal has no subsidiary.
Legal Proceedings
From time to time, Newport 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
Newport 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 Newport 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.
Newport Federal is no exception to the aforementioned phenomenon.
With its current asset and liability structure, however, its exposure to rising
interest rates is minimal.
The addition of capital through the conversion will encourage Newport
Federal to grow. The business plan projects asset growth over the three year
period ending June 30, 2000 between 7% and 29% annually. Growth for the first
year is projected at 29% because of (1) the conversion and (2) a pending branch
purchase that will add approximately $6.0 million in assets. 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, Newport
Federal is a moderately efficient operation. With total assets of approximately
$34.4 million at June 30, 1997, Newport Federal has approximately 9 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.
Intangible Values
Newport Federal's greatest intangible value lies in its loyal deposit
base. Newport Federal has a 63 year history of operations and independence. At
June 30, 1996, the Bank had 15.81% of the deposit market in its area (down from
16.08% at June 30, 1994), and it has the ability to increase market share.
Completion of the NationsBank branch purchase will give Newport Federal
approximately 19% of its market. Newport Federal has maintained its market share
in recent years without making any significant efforts. Its turn around in
strategic direction is expected to help Newport Federal increase its market
share significantly.
Newport Federal has no significant intangible values that could be
attributed to unrecognized asset gains on investments and real estate.
Effect of Government Regulations
Newport Federal's business plan calls for changes 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.
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FERGUSON & COMPANY Section I
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Office Facilities
Newport Federal's office is a modern facility that was built in 1995.
It has excellent amenities to service the Bank's customer base. Table I.19
provides information on Newport Federal's office. The Bank's former office is
fully leased.
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FERGUSON & COMPANY Section I
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Table I.1 - Selected Financial Data
At June 30 Compound
-------------------------------------------------------------------- Growth
1997 1996 1995 1994 1993 Rate
---- ---- ---- ---- ---- ---------------
($000's)
Selected Financial Condition Data:
- ----------------------------------
Total assets $ 34,379 $ 32,446 $ 30,457 $ 29,883 $ 29,818 3.62%
Cash 884 1,167 1,386 286 962 -2.10%
Time deposits with other banks 691 890 1,086 3,056 3,941 -31.18%
Securities held to maturity 5,923 6,310 6,542 6,093 5,956 NM
Loans receivable, net 24,794 21,982 20,152 19,798 18,442 7.68%
Savings deposits 31,073 29,657 27,772 27,336 27,690 2.92%
Borrowings 618 134 149 162 - NM
Equity substantially restricted 2,266 2,465 2,392 2,178 1,986 3.35%
Year Ended June 30,
---------------------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
($000's)
Selected Operations Data:
- -------------------------
Interest income $ 2,493 $ 2,328 $ 2,155 $ 2,033 $ 2,236
Interest expense 1,597 1,525 1,279 1,181 1,309
---------------------------------------------------------
Net interest income 896 803 876 852 927
Provision for loan losses 90 10 5 5 25
---------------------------------------------------------
Net interest income after
provision for loan losses 806 793 871 847 902
---------------------------------------------------------
Noninterest income 19 11 17 45 29
---------------------------------------------------------
Sub-total 825 804 888 892 931
---------------------------------------------------------
Noninterest expense 1,157 726 555 569 533
---------------------------------------------------------
Income (loss) before taxes and cumulative effect (332) 78 333 323 398
Income tax expense (benefit) (133) 6 119 121 127
---------------------------------------------------------
Net income (loss) before cumulative effect (199) 72 214 202 271
---------------------------------------------------------
Cumulative effect adjustment - - - (10)
=========================================================
Net income (loss) $ (199) $ 72 $ 214 $ 192 $ 271
=========================================================
Source: Offering circular, audited financial
statements, & F&C calculations
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Table I.2 - Operating Ratios
At or for the
Year Ended June 30,
-----------------------
1997 1996
---- ----
Performance Ratios:
- ------------------
Return on assets (ratio of net earnings
to average total assets) -0.60% 0.23%
Return on equity (ratio of net earnings
to average equity) -8.41% 2.92%
Ratio of average interest-earning assets to
average interest-bearing liabilities 104.67% 104.12%
Ratio of net interest income, after provision
for loan losses, to noninterest expense 69.66% 109.23%
Net interest rate spread 2.54% 2.49%
Net yield on average interest-earning assets 2.77% 2.70%
Quality Ratios:
- --------------
Non-performing loans to total loans
at end of period 0.30% 0.14%
Non-performing loans to total assets 0.21% 0.09%
Non-performing assets to total assets
at end of period 0.21% 0.47%
Allowance for loan losses to non-performing
loans at end of period 202.70% 243.33%
Allowance for loan losses to total loans, net 0.60% 0.33%
Capital Ratios:
- --------------
Equity to total assets at end of period 6.59% 7.60%
Average equity to average assets 7.08% 7.72%
Other Data:
- ----------
Number of full service offices 1 1
Source: Offering circular 7
FERGUSON & COMPANY Section I
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Table I.3 - Interest Rate Shock
Net Portfolio Value
June 30, 1997
------------------------------------------------------------------------------------
Estimated
NPV as a
Change Estimated Percent
in Rates NPV of Assets $ Change % Change
- --------------------------------------- ------------------- ------------------- -------- -------------------
($000's)
+400 bp $ 2,403 7.26% (669) -22%
+300 bp 2,663 7.91% (409) -13%
+200 bp 2,873 8.40% (199) -6%
+100 bp 3,012 8.70% (60) -2%
0 bp 3,072 8.77% - -
--100 bp 3,051 8.63% (21) -1%
--200 bp 3,002 8.42% (70) -2%
--300 bp 2,993 8.32% (79) -3%
--400 bp 3,054 8.38% (18) -1%
Source: Office of Thrift Supervision, Risk Management Division
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Table I.4 - Regulatory Capital Compliance
Percent of
Amount Assets
---------------------------
($000's)
Tangible capital $2,266 6.59%
Tangible capital reqirement 516 1.50%
---------------------------
Excess (deficit) $1,750 5.09%
===========================
Core capital $2,266 6.59%
Core capital requirement 1,031 3.00%
---------------------------
Excess (deficit) $1,235 3.59%
===========================
Risk-based capital $2,414 13.31%
Risk-based capital requirement 1,451 8.00%
---------------------------
Excess (deficit) $963 5.31%
===========================
Source: Offering circular 9
Ferguson & Company Section I
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Table I.5 - Loan Portfolio Composition
At June 30,
-----------------------------------------------------------
1997 1996
----------------------------- --------------------------
Amount Percent Amount Percent
($000's)
Mortgage Loans:
1-4 family 17,479 70.06% 17,486 79.25%
Multi-family 136 0.55% 145 0.66%
Non-residential 3,613 14.48% 2,628 11.91%
------------------------- ------------------------------
Total mortgage loans 21,228 85.08% 20,259 91.82%
------------------------- ------------------------------
Consumer Loans:
Loans on savings accounts 443 1.78% 256 1.16%
Home improvement loans 666 2.67% 763 3.46%
Automobile loans 2,010 8.06% 649 2.94%
Other consumer loans 510 2.04% 138 0.63%
------------------------- ------------------------------
Total consumer loans 3,629 14.55% 1,806 8.18%
------------------------- ------------------------------
Commercial loans 93 0.37% - 0.00%
------------------------- ------------------------------
Total loans 24,950 100.00% 22,065 100.00%
-------------============ --------------------==========
Less:
Deferred fees and discounts 6 10
Allowance for losses 150 73
---------- ---------------
Loan portfolio, net 24,794 21,982
========== ===============
Source: Offering circular 10
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.6 - Loan Maturities
The following table sets forth certain information at June 30, 1997, regarding
the amount of loans maturing in the loan portfolio, based on contractual terms
to maturity.
Due During the Year Ending June 30,
----------------------------------- 3 to 5 5 to 10 Over
1998 1999 2000 Years Years 10 Years Total
--------- -------- --------- ---------- ---------------------- ----------
($000,s)
Mortgage loans $ 1,654 $ 115 $ 1,759 $ 3,154 $ 3,467 $ 11,079 $ 21,228
Commercial loans 93 - - - - - 93
Consumer loans 710 174 258 1,873 468 146 3,629
--------- -------- --------- ---------- ---------------------- ----------
Total $ 2,457 $ 289 $ 2,017 $ 5,027 $ 3,935 $ 11,225 $ 24,950
========= ======== ========= ========== ====================== ==========
Set forth below is a break down of loans between fixed and adjustable rates:
Fixed Adjustable
Rate Rate
---------- ----------
($000's)
Real estate:
1-4 family 5,101 12,378
Multi-family - 136
Non-residential 2,033 1,580
Consumer:
Deposit account loans 443
Home improvement 666
Automobile 2,010
Other 510
Commercial 93
---------- ----------
10,856 14,094
========== ==========
Source: Offering circular 11
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.7 - Loan Origination, Purchase, and Repayment Activity
For the Year Ended June 30,
-------------------------------------
1997 1996
---- ----
($000's)
Net loans, beginning of period $ 21,982 $ 20,152
Originations by type:
- ---------------------
Mortgage loans:
1-4 family 4,515 3,714
Multi-family 55 43
Commercial 936 561
Consumer loans 3,231 1,456
Commercial loans 93 -
----------- ----------
Total loans originated 8,830 5,774
----------- ----------
Purchases 500 1,005
- --------- ----------- ----------
Total loans originated and purchased 9,330 6,779
----------- ----------
Loans sold - -
- ---------- ----------- ----------
Repayments: 6,445 4,943
- ----------- ----------- ----------
Decrease (increase) in other items, net: (73) (6)
- ---------------------------------------- ----------- ----------
Net increase (decrease) in loans receivable, net 2,812 1,830
----------- ----------
Net loans, end of period $ 24,794 $ 21,982
=========== ===========
Source: Offering circular 12
FERGUSON & COMPANY
- ------------------
Table I.8 - Average Balances, Rates, and Yields
Year Ended June 30,
-------------------------------------------------------------------------------------
1997 1996
--------------------------------------- --------------------------------------------
Average Interest Average Interest
Outstanding Earned/ Average Outstanding Earned/ Average
Balance Paid Yield/Rate Balance Paid Yield/Rate
--------------------------------------- --------------------------------------------
($000's)
Interest/dividend-earning assets:
- ---------------------------------
Interest-bearing deposits $ 1,767 $ 72 4.07% $ 2,519 $ 129 5.12%
Mortgage-backed securities 5,374 339 6.31% 4,442 280 6.30%
Investment securities 976 71 7.27% 1,266 105 8.29%
Loans 24,249 2,011 8.29% 21,470 1,814 8.45%
------------------------------------ --------------------------------------
Total interest\dividend-earning assets 32,366 $ 2,493 7.70% 29,697 $ 2,328 7.84%
=================== ======================
Non-interest earning assets 1,745 1,644
------------- ----------
Total assets $ 34,111 $ 31,341
============= ==========
Interest-bearing liabilities:
- -----------------------------
Savings deposits $ 29,684 1,541 5.19% $ 28,383 $ 1,517 5.34%
FHLB advances 1,238 56 4.52% 140 8 5.71%
------------------------------------ --------------------------------------
Total interest-bearing liabilities 30,922 $ 1,597 5.16% 28,523 $ 1,525 5.35%
================== ======================
Non-interest bearing liabilities 789 351
------------- ----------
Total liabilities 31,711 28,874
------------- ----------
Equity 2,400 2,467
------------- ----------
Total liabilities and equity $ 34,111 $ 31,341
============= ==========
Net interest\dividend income $ 896 $ 803
========= ========
Net interest\dividend rate spread (1) 2.54% 2.49%
===== ==========
Net interest\dividend earnings assets $ 1,444 $ 1,174
============= ==========
Net interest\dividend margin (2) 2.77% 2.70%
===== ==========
Average interest\dividend-earning assets to
average interest-bearing liabilities 104.67% 104.12%
========== =========
(1) Net interest rate spread represents the difference between the average yield
on interest-earning assets and the average rate on interest-bearing
liabilities.
(2) Net interest margin represents net interest income divided by average
interest-earning assets.
Source: Offering circular 13
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.9 - Rate/Volume Analysis
Year Ended June 30,
----------------------------------------------------------------------------------------
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:
Interest-bearing deposits $ (39) $ (26) $ 8 $ (57) $ (14) $ 26 $ (3) $ 9
Mortgage-backed securities 59 - - 59 (22) 51 (4) 25
Investments (24) (13) 3 (34) (11) 16 (2) 3
Loans 235 (34) (4) 197 126 10 1 137
----------------------------------------- ---------------------------------------------
Total interest-earning assets 231 (73) 7 165 79 103 (8) 174
----------------------------------------- ---------------------------------------------
Interest-bearing liabilities:
Deposits 69 (43) (2) 24 44 195 7 246
FHLB advances 63 (2) (13) 48 (1) (1) - (2)
----------------------------------------- ---------------------------------------------
Total interest - bearing liabilities 132 (45) (15) 72 43 194 7 244
----------------------------------------- ---------------------------------------------
Increase (decrease) in net
interest income $ 99 $ (28) $ 22 $ 93 $ 36 $ (91) $ (15) $ (70)
========================================= =============================================
Source: Offering circular 14
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.
June 30,
--------------------------------------------
1997 1996
----- ----
($000's)
Non-accruing loans:
Real estate:
One- to four-family 67 30
Multi-family - -
Non-residential - -
Consumer 7 -
Commercial - -
--------------------------------------------
Total 74 30
--------------------------------------------
Accruing loans delinquent 90 days or more:
Real estate:
One- to four-family - -
Multi-family - -
Non-residential - -
Construction - -
Consumer - -
Commercial - -
Other - -
--------------------------------------------
Total - -
--------------------------------------------
Total non-performing loans 74 30
--------------------------------------------
Repossessed assets - 124
--------------------------------------------
Total non-performing assets 74 154
============================================
Total non-performing loans as a
percentage of total net loans 0.30% 0.14%
============================================
Total non-performing assets as a
percentage of total assets 0.21% 0.47%
============================================
15
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.11 - Analysis of the Allowance for Loan Losses
Year ended June 30,
----------------------------------------
1997 1996
---- ----
($000's)
Balance at beginning of period $ 73 $ 63
---------------- --------------------
Charge-offs:
One- to four-family (13) -
Multi-family - -
Non-residential - -
Consumer - -
Commercial - -
---------------- --------------------
(13) -
---------------- --------------------
Recoveries: - -
---------------- --------------------
Net (charge-offs) (13) $ -
---------------- --------------------
Additions charged to operations 90 10
---------------- --------------------
Balance at end of period $ 150 $ 73
================ ====================
Allowance for loan losses to total
non-performing loans at end of period 202.70% 243.33%
================ ====================
Allowance for loan losses to net
loans at end of period 0.60% 0.33%
================ ====================
Ratio of net charge-offs to average
loans outstanding during the period 0.05% 0.00%
================ ====================
16
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.12 - Allocation of Allowance for Loan Losses
At June 30,
-----------------------------------------------------------------
1997 1996
------------------------------- -------------------------------
Percent Percent
of Loans of Loans
in Each in Each
Amount of Category Amount of Category
Loan Loss to Gross Loan Loss to Gross
Allowance Loans Allowance Loans
--------- ----- --------- -----
($000's)
Mortgage Loans
1-4 family 105 70.06% 58 79.25%
Multi-family 1 0.55% - 0.66%
Non-residential 22 14.48% 9 11.91%
Consumer Loans
Loans secured by deposits 3 1.78% 1 1.16%
Home improvement 4 2.67% 3 3.46%
Automobile 12 8.06% 2 2.94%
Other consumer 3 2.04% - 0.63%
Commercial Loans - 0.37% - 0.00%
------------------------------- ---------------------------
150 100.00% 73 100.00%
=============================== ===========================
17
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.13 - Investment Securities
At June 30,
----------------------------------
1997 1996
--------------- ----------------
($000's)
U.S. government agency securities $ 500 $ 1,000
Mortgage-backed securities 5,077 4,963
Federal Home Loan Bank stock 283 267
Obligations of states and political subdivisions 63 80
--------------- ----------------
Total $ 5,923 $ 6,310
=============== ================
18
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.14 - Investments at June 30, 1997
Maturity Period at June 30, 1997
---------------------------------------------------------------------------------------------
One Year or Less One to Five Years Over Five Years Total
------------------- ------------------- --------------------- --------------------
Book Book Book Book
Value Yield Value Yield Value Yield Value Yield
----- ----- ----- ------ ------- ----- ------- -----
($000's)
--------
U.S. government agencies
and tax exempt securities $ - 0.00% $ 509 6.46% $ 54 9.46% $ 563 6.75%
Mortgage-backed securities - 0.00% 53 12.15% 5,024 6.83% 5,077 6.75%
FHLB stock and other 283 5.84% - 0.00% - 0.00% 283 5.84%
----- ----- ----- ------ ------- ----- ------- -----
Total investment securities $ 283 5.84% $ 562 7.00% $ 5,078 6.86% $ 5,923 6.71%
===== ===== ===== ====== ======= ===== ======= =====
19
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.15 - Deposit Portfolio
Balance Percent
Interest June 30, of
Category Term Rate (1) 1997 Deposits
- -------- ---- -------- ----- --------
($000's)
--------
Savings and transactions accounts
- ---------------------------------
Now accounts None 2.40% $ 1,670 5.37%
Passbook accounts None 3.00% 1,893 6.09%
Demand None 0.00% 983 3.16%
Money market accounts None 2.41% 325 1.05%
------- ----------
4,871 15.68%
------- ----------
Certificates of deposit
- ---------------------------------
Fixed term, fixed rate 6 months 5.47% 5,204 16.75%
Fixed term, fixed rate 12 months 5.67% 6,106 19.65%
Fixed term, fixed rate 15 months 5.60% 3,013 9.70%
Fixed term, fixed rate 18 months 5.77% 1,282 4.13%
Fixed term, fixed rate 24 months 5.82% 979 3.15%
Fixed term, fixed rate 36 months 5.93% 942 3.03%
Fixed term, fixed rate 60 months 6.08% 8,593 27.65%
Other 4.18% 83 0.27%
------- ----------
Total certificates of deposit 26,202 84.32%
------- ----------
Total savings deposits $31,073 100.00%
======= ==========
(1) Indicates weighted average interest rate at June 30, 1997.
20
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.16 - Savings Deposits Detail
At June 30,
------------------------------------------------------------------------------------------
1997 1996 1995
----------------------- -------------------------- --------------------------
Percent of Percent of Percent of
Amount Total Amount Total Amount Total
------ ---- ------ ---- ------ -----
($000's)
Transactions and Savings Deposits:
- ---------------------------------
NOW and money market accounts $ 2,978 9.58% $ 2,322 7.83% $ 1,943 7.00%
Passbook accounts 1,893 6.09% 1,361 4.59% 1,145 4.12%
----------------------- -------------------------- --------------------------
Total transaction accounts 4,871 15.68% 3,683 12.42% 3,088 11.12%
----------------------- -------------------------- --------------------------
Certificates:
- ------------
2.00 to 3.99% - 0.00% 49 0.17% 1,081 3.89%
4.00 to 5.99% 26,202 84.32% 16,666 56.20% 14,212 51.17%
Over 6.00% - 0.00% 9,259 31.22% 9,391 33.81%
----------------------- -------------------------- --------------------------
Total certificates 26,202 84.32% 25,974 87.58% 24,684 88.88%
----------------------- -------------------------- --------------------------
Total deposits $31,073 100.00% $29,657 100.00% $27,772 100.00%
======================= ========================== ==========================
21
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.17 - Certificate of Deposit Maturities
The table below provides CD maturities at June 30, 1997, by year in rate ranges.
Less Than One to Two to After Percent
One Year Two Years Three Years Three Years Total of Total
-------- --------- ----------- ----------- ----- --------
($000's)
Certificates maturing in:
2.00% to 3.99% $ - $ - $ - $ - $ - 0.00%
4.00% to 5.99% 10,787 9,962 1,135 4,318 26,202 100.00%
------------------------------------------------------------------------------------------
Total $ 10,787 $ 9,962 $ 1,135 $ 4,318 $ 26,202 100.00%
==========================================================================================
Percent of total 41.17% 38.02% 4.33% 16.48% 100.00%
=========================================================================
22
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.18 - Large CD Maturities
Certificates of deposit over $100,000
maturing in period ending: Amount
- ------------------------------------- --------
($000's)
Within three months or less $ 575
Three through six months 351
Six through twelve months 1,058
Over 12 months 1,377
-------
Total $ 3,361
=======
23
Source: Offering Circular
FERGUSON & COMPANY Section I
- ------------------ ---------
Table I.19 - Offices
Net Book Year Owned or Square
Physical address Value (1) Occupied Leased Footage
- ---------------- --------- -------- ------ -------
($000's)
200 Olivia Drive $ 1,238 1995 Owned 6,800
Newport, Arkansas 72112
Main Office
522 Third Street $ 248 1956 Owned 7,400
Newport, Arkansas 72112
Former Main Office
(1) Cost less accumulated depreciation and amortization.
24
Source: Offering Circular
SECTION II
MARKET AREA
FERGUSON & COMPANY SECTION II
- ------------------ ----------
II. MARKET AREA
DEMOGRAPHICS
Newport Federal Savings Bank ("Newport Federal" or "Bank") conducts
its operations through one office located in Newport, Jackson County, Arkansas.
Arkansas is in the southeastern region of the United States. Jackson County is
in the northeastern section of Arkansas.
Newport Federal has determined that its principal trade area is
Jackson County and parts of the contiguous counties. Table II.1 presents
historical and projected trends for the United States, Arkansas, Jackson County,
and zip code 72112, which includes the City of Newport. The information
addresses population, income, employment, and housing trends.
As indicated in Table II.1, population growth rates for Arkansas are
close but slightly above the United States growth rate. Growth rates for
Jackson County and zip code 72112 are well below both Arkansas and the United
States. Household income growth for Arkansas, Jackson County, and zip code
72112 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
Arkansas grew 6.94%. During the same period, the Jackson County population
decreased 2.37%, zip code 72112 decreased 2.86%, and the United States
population increased 6.67%. Projections of population growth from 1996 through
2001 indicate that the State of Arkansas will increase 5.48%, while Jackson
County is projected to decrease by 1.90%, zip code 72112 is projected to
decrease 2.00%, and the United States population is projected to increase by
5.09%.
Household income is projected to decrease by .64% for Jackson County
from 1996 to 2001. For the same period, household income is projected to
increase by 2.92% for the State of Arkansas, decrease by .80% for zip code
72112, and decline by 3.88% for the United States. Per capita and household
income levels for the State of Arkansas are well below those of the United
States, and per capita and household income levels for Jackson County and zip
code 72112 are well below the State of Arkansas.
The 2001 estimate shows that, for Jackson County, households with
incomes less than $15,000 are expected to be 36%; those with incomes between
$15,000 and $25,000 are estimated at 21%; those with incomes between $25,000 and
$50,000 are estimated at 29%; those with incomes between $50,000 and $100,000
are estimated at 12%; and households with incomes in excess of $100,000 are
projected to be 3%. The 2001 estimates for Arkansas are 27%, 20%, 34%, 16%, and
3%, respectively. The 2001 estimate for zip code 72112 is 37%, 20%, 29%, 12%,
and 3%, respectively.
The number of households in Jackson County is projected to decrease by
1.93% from 1996 to 2001, well below the projection for the State of Arkansas
which calls for an increase of 5.64% and in line with the projected decline for
zip code 72112 at 2.05%. While the household growth rate for Arkansas is
slightly higher than that of the United States (5.64% versus 5.14%), the
household growth rate for Jackson County and zip code 72112 are well below the
projected growth rate for the U.S. and Arkansas.
With projections of a slight decline in population and number of
households, combined with projections of a slightly declining household income,
the market for housing units will be flat. Zip code 72112 has approximately
5,800 housing units, of which 59.66% are owner occupied, and a vacancy rate of
8.81%. Jackson County has approximately 8,100 housing units, of which 62.42%
are owner occupied, and a vacancy rate of 8.97%.
The principal sources of employment in Jackson County are
manufacturing--23.3%; trade--23.0%; public administration--15.2%; and services--
22.6%.
Analysis of the data presented above presents a picture of limited
economic opportunity, suggesting that Newport Federal's growth opportunities
within its current market area will be limited.
1
FERGUSON & COMPANY SECTION II
- ------------------ ----------
Based on information publicly available on deposits as of June 30, 1996
(see Table II.3), Jackson County had $187.6 million in deposits and Newport
Federal had 15.81% of the deposit market, down slightly from 16.08% of the
market at June 30, 1994. The Bank's recent deposit growth rate has been
moderate, in line with the overall market. Newport Federal's competition
consists of 9 commercial bank offices. The Bank's growth rate has accelerated
since the Bank moved into its new building in September 1995. Table II.3 shows
that from June 30, 1994 to 1996, Newport Federal's deposits increased by $2.321
million (8.5%), while the overall market increased $17.583 million in deposits
(10.3%). The Bank's deposits increased $1.416 million (4.8%) from June 30, 1996,
to June 30, 1997. In August 1997, Newport Federal agreed to buy NationsBank's
Newport office, with approximately $6.0 million in deposits. The Bank's business
plan projects that its deposits will continue to grow at a healthy pace in the
future. The Bank intends to market its services and products more aggressively.
Building permit information was not available. However, projected
population and household income growth rates in Newport Federal's market area
portend limited lending opportunities within the market.
Growth opportunities for Newport 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.
A prison will be opening in the Newport area in early 1998. It is
expected to employ approximately 300. This will have a positive effect on the
immediate area. Within a 30 mile radius of Newport, there is a population base
of approximately 110,000. Therefore, if the Bank reaches a position of limited
opportunities within the immediate trade area, it is fairly simple to expand its
trade area by branching or opening loan production offices. Management if well
aware of this, and is prepared to expand if the economics justify it.
2
Section II
----------
FERGUSON & COMPANY
- ------------------
Table II.1 - Demographic Trends
Key Economic Indicators
United States, Arkansas, Jackson County, Zip Code 72112
=======================================================================================================================
United Jackson Zip Code
Key Economic Indicator States Arkansas County 72112
-----------------------------------------------------------------------------------------------------------------------
Total Population, 2001 Est. 278,802,003 2,651,619 18,144 12,896
1996 - 2001 Percent Change, Est. 5.09 5.48 (1.90) (2.00)
Total Population, 1996 Est. 265,294,885 2,513,924 18,495 13,159
1990 - 96 Percent Change, Est. 6.67 6.94 (2.37) (2.86)
Total Population, 1990 248,709,873 2,350,725 18,944 13,546
-----------------------------------------------------------------------------------------------------------------------
Household Income, 2001 Est. 33,189 27,040 20,333 20,524
1996 - 2001 Percent Change, Est. (3.88) 2.92 (0.64) (0.80)
Household Income, 1996 Est. 34,530 26,272 20,464 20,689
-----------------------------------------------------------------------------------------------------------------------
Per Capita Income, 1990 16,738 13,087 11,200 11,606
-----------------------------------------------------------------------------------------------------------------------
Household Income Distribution-2001 Est. (%)
$15,000 and less 20 27 36 37
$15,000 - $25,000 16 20 21 20
$25,000 - $50,000 34 34 29 29
$50,000 - $100,000 24 16 12 12
$100,000 - $150,000 4 2 2 2
$150,000 and over 2 1 1 1
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Unemployment rate, 1990 6.24 5.98 5.40 5.41
-----------------------------------------------------------------------------------------------------------------------
Median Age of Population, 1996 Est. 34.3 35.3 37.9 37.7
Median Age of Population, 1990 32.9 33.8 36.7 36.6
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Average Housing Value, 1990 79,098 55,138 41,357 45,697
-----------------------------------------------------------------------------------------------------------------------
Total Households, 2001 Est. 103,293,062 1,008,845 7,051 4,979
1996 - 2001 Percent Change, Est. 5.14 5.64 (1.93) (2.05)
Total Households, 1996 98,239,161 955,003 7,190 5,083
1990 - 96 Percent Change, Est. 6.84 7.16 (2.32) (2.87)
Total Households, 1990 91,947,410 891,179 7,361 5,233
-----------------------------------------------------------------------------------------------------------------------
Total Housing Units, 1990 101,641,260 1,000,667 8,086 5,764
% Vacant 10.07 10.94 8.97 8.81
% Occupied 89.93 89.06 91.03 91.19
% By Owner 57.78 61.95 62.42 59.66
% By Renter 32.15 27.11 28.62 31.52
=======================================================================================================================
3
Source: Scan/V.P.S. Inc.
Section II
----------
FERGUSON & COMPANY
- ------------------
Table II.2-Percent Employment by Industry
United Jackson
Industry States Arkansas County
========================================== ============ ============== =============
Construction/Agriculture/Mining 9.5 6.3 7.9
Manufacturing 17.7 24.4 23.3
Transportation/Utilities 7.1 5.8 5.1
Trade 21.2 23.8 23.0
Finance/Insurance 6.9 4.0 2.9
Services 32.7 21.6 22.6
Public Administration 4.8 14.1 15.2
4
Source: State of Arkansas Employee Division
Section II
----------
FERGUSON & COMPANY
- ------------------
Table II.3 - Market Area Deposits
-----------------------------------------------------------------------------------------------------------------------
1996 1995 1994
------------ ------------ ------------
(in Thousands)
Jackson County Deposits
Total Newport Federal Savings bank $ 29,657 $ 27,772 $ 27,336
------------ ------------ ------------
Number of Branches 1 1 1
Total Bank Deposits $ 157,895 $ 148,050 $ 142,633
------------ ------------ ------------
Number 5 4 5
Number of Branches 9 8 10
Total Deposits $ 187,552 $ 175,822 $ 169,969
============ ============ ============
Percent of Deposits Held by
Newport Federal SB 15.81% 15.80% 16.08%
============ ============ ============
-----------------------------------------------------------------------------------------------------------------------
Note: In August 1997, the Bank agreed to buy NationsBank's
office in Newport. That office had approximately $6.0 million
in deposits. The deposits will be combined with the Bank's existing
office in Newport.
5
Source: BranchSource, a product of Sheshunoff Information Services, Inc.
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 Newport Federal Savings Bank
("Newport 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
Newport 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 Newport Federal
to the comparative group. Exhibits III and IV contain selected financial
information on Newport 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 $100 million. The Southeast Region, which includes Arkansas,
had 7 thrifts that met the size requirements. We found 57 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 45 for the following reasons: (a) One
was a mutual holding company; (b) Twenty-two did not have PE ratios for the last
twelve months; (c) Twenty-three had tangible equity over 20% of assets; (d) One
had agreed to be acquired; (e) Seven had non-performing assets in excess of 1.0%
of assets; (f) Three had loans to deposits ratios below 50%; (g) Twenty-three
had loans to deposits ratios over 100%; and (h) Four had loans serviced in
excess of 40% of assets. After eliminating the thrifts described above, there
were fourteen left. We then eliminated the two remaining with the most in
assets.
The principal source of data was SNL Securities, Charlottesville,
Virginia. There are approximately 400 publicly traded thrifts listed on NYSE,
AMEX, or Nasdaq. In developing statistics for the entire country, we eliminated
certain institutions that skewed the results, in order to make the data more
meaningful:
. We eliminated companies with losses,
. We eliminated indicated acquisition targets,
. We eliminated companies with price/earnings ratios in excess of 25,
and
. We eliminated companies that had not reported as a stock institution
for one complete year.
The resulting group of 257 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 Southwest (1) and Mid-Atlantic
(2) Regions. With total assets of approximately $34.4 million, Newport Federal
is well below the group selected, which has average assets of $74.3 million and
median assets of
1
FERGUSON & COMPANY Section III
- ------------------ -----------
$82.5 million. Newport Federal's assets after conversion will continue to be
much smaller than the comparative group. Pro forma assets at the midpoint are
$36.4 million.
Profitability
Using the comparison of profitability components as a percentage of
average assets, Newport Federal was below the comparative group in net income,
.41% to .58%; net interest income, 2.63% to 3.51%; loss provisions, .26% to
.08%; noninterest income, .06% to .24%; efficiency ratio, 75.63% to 64.19%; and
core income, .41% to .82%. Newport Federal was above the comparative group in
operating expense, 2.03% to 2.42%. Newport Federal's operating expense minus
other income was 1.97% versus 2.18% for the comparative group. After conversion,
deployment of the proceeds will provide additional income, and Newport Federal
will compare more favorably with the comparative group in terms of return on
average assets, with a return of .52% at the midpoint of the appraisal range.
Pro forma return on average equity is 4.13% at the midpoint, versus a mean of
5.03% and median of 4.67% for the comparative group.
As compared with the comparative group, Newport Federal has a lower
level of operating expense. Newport Federal is below the comparative group in
all other areas of operations shown on Table III.2. Newport Federal has two
serious impediments to earnings relative to the comparative group--1) its
spread; and 2) its ratio of interest earning assets to interest bearing
liabilities. The proceeds from the stock sale will improve most of Newport
Federal's operating ratios. However, it will take some time and asset growth to
overcome the significant recent investment in non-earning assets--the new
building. In addition, improving the spread will require growth in higher
yielding loans and lower costing liabilities.
Balance Sheet Characteristics
The general asset composition of Newport Federal is similar to that of
the comparative group. Newport Federal has a lower level of passive investments
with 21.81% of its assets invested in cash, investments, and mortgage-backed
securities, versus 35.13% for the comparative group. Newport Federal has a
higher percentage of its assets in loans, at 72.12% versus 60.48% for the
comparative group. Newport Federal's percentage of earning assets to interest
costing liabilities is much lower than that of the group. Newport Federal has
104.25% and the comparative group averages 116.14%. After conversion, Newport
Federal's ratio will continue to be lower than that of the group of
comparatives.
The liability side differs mainly in that Newport Federal has a lower
percentage of borrowings, a higher percentage of deposits, and a lower
percentage of equity. Newport Federal has borrowings equal to 1.80% of assets
versus 13.20% for the comparative group and deposits equal to 90.38% of assets
versus 70.79% for the comparative group. Newport Federal`s equity is 6.59% of
assets versus 14.77% for the comparative group. Newport Federal's equity ratio
after conversion will be in line with that of the comparative group. Newport
Federal's pro forma equity ratio at the midpoint is 11.9% (13.8% at the
supermaximum).
Risk Factors
Newport Federal and the comparative group have similar levels of non-
performing assets. Newport Federal's loan loss allowance is .60% of net loans,
which is in line with the comparative group at .62%. Approximately 28.6% of
Newport Federal's loans are long-term, fixed rate, 56.5% of its loans are long-
term, adjustable, and 14.9% are fixed rate short to intermediate term loans.
Newport Federal does not prepare a gap table, relying instead on a rate shock
table. Its rate shock table indicates a 6% decline in net portfolio value at a
200 basis point increase in rates and a 22% decline in net portfolio value at a
400 basis point rate increase (see Table I.3). These levels of NPV decline
indicate minimal interest rate risk. The comparative group information indicates
a negative 10.38% one year gap to assets. However, only two of the twelve
members of the group reported their gap. Overall, we believe that Newport
Federal's interest rate risk management is superior 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 Newport Federal compared with the group, we believe that
Newport Federal's performance is slightly below that of the comparative group.
Newport Federal is in a transition period. It recently completed a new building,
thereby increasing non-earning assets, decreasing earning assets, and increasing
operating expenses, i.e., occupancy costs. The conversion proceeds will improve
several of Newport Federal's financial aspects, but, after conversion, the Bank
will continue to lag the comparative group in most financial areas. Expansion of
the earnings base is needed to overcome the financial effect of the new
building. The conversion and the pending branch deposit purchase will both help.
FUTURE PLANS
Newport 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, leveraging the capital as rapidly as practical.
In recent years, Newport Federal has experienced moderate growth. The
Bank's business plan projects that it will experience growth in loans, savings
deposits, and liquidity. The additional capital raised by the sale of Common
Stock will initially be used to purchase short term investment securities.
Increasing market penetration by increasing the number of services and
products available 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 - Comparatives General Characteristics
- ------------------
Section III
-----------
Total Current Current
Number Assets Stock Market
Type of ($000) Price Value
Ticker Short Name City State Thrift (1) Offices MRQ IPO Date ($) ($M)
ALBC Albion Banc Corp. Albion NY Traditional 2 68,628 07/26/93 23.250 5.81
GUPB GFSB Bancorp Inc. Gallup NM Traditional 1 86,911 06/30/95 18.750 15.08
HBBI Home Building Bancorp Washington IN Traditional 2 45,064 02/08/95 20.500 6.39
HHFC Harvest Home Financial Corp. Cheviot OH Traditional 3 87,596 10/10/94 11.750 10.75
HZFS Horizon Financial Svcs Corp. Oskaloosa IA Traditional 3 85,969 06/30/94 18.875 8.03
KYF Kentucky First Bancorp Inc. Cynthiana KY Traditional 2 88,959 08/29/95 12.500 16.49
LOGN Logansport Financial Corp. Logansport IN Traditional 1 83,152 06/14/95 14.625 18.43
MIVI Mississippi View Holding Co. Little Falls MN Traditional 1 69,775 03/24/95 15.500 12.69
NSLB NS&L Bancorp Inc. Neosho MO Traditional 2 59,711 06/08/95 18.500 13.09
SFFC StateFed Financial Corp Des Moines IA Traditional 2 85,679 01/05/94 22.000 17.24
SOBI Sobieski Bancorp Inc. South Bend IN Traditional 3 81,754 03/31/95 16.438 12.74
USAB USABancshares, Inc. Philadelphia PA Traditional 1 48,303 NA 8.125 5.97
Maximum 3 88,959 23.250 18.43
Minimum 1 45,064 8.125 5.81
Average 2 74,292 16.734 11.89
Median 2 82,453 17.469 12.72
(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
Source: SNL & F&C calculations
FERGUSON & COMPANY Section III
- ------------------ -----------
Table III.2 - Key Financial Indicators
Newport
Federal Comparative
Savings Bank Group
------------------------ ----------------------
Profitability
(% of average assets)
Net income (1) 0.41 0.58
Net interest income 2.63 3.51
Loss (recovery) provisions 0.26 0.08
Other operating income 0.06 0.24
Operating expense (2) 2.03 2.42
Efficiency ratio (2) 75.63 64.19
Core income (excluding gains
and losses on asset sales) (1) 0.41 0.82
Balance Sheet Factors
(% of assets)
Cash and investments 7.04 23.20
Mortgage-backed securities (including CMO's) 14.77 11.93
Loans 72.12 60.48
Savings deposits 90.38 70.79
Borrowings 1.80 13.20
Equity 6.59 14.77
Tangible equity 6.59 14.76
Risk Factors
(%)
Earning assets/costing liabilities 104.25 116.14
Non-performing assets/assets 0.21 0.37
Loss allowance/non performing assets 202.70 163.21
Loss allowance/loans 0.60 0.62
One year gap/assets (3) NA (10.38)
(1) Used appraisal earnings.
(2) Excluded SAIF assessment and directors' benefit plan cost.
(3) Only two of the 12 in the group reported one year gap.
5
Source: SNL F&C Calculations
FERGUSON & COMPANY Table III.3 - Pro Forma Comparisons Section III
- ------------------ -----------
Newport Federal Savings Bank
As of September 2, 1997
Ticker Name Price Mk Value PE P/Book P/TBook P/Assets Div Yld Assets Eq/A
($) ($Mil) (X) (%) (%) (%) (%) ($000) (%)
Newport Federal SB
------------------
Before Conversion N/A N/A N/A N/A N/A N/A N/A 34,379 6.6
Pro Forma Supermaximum 10.000 3.70 18.3 72.3 72.3 9.9 N/A 37,238 13.8
Pro Forma Maximum 10.000 3.22 16.8 68.5 68.5 8.7 N/A 36,813 12.8
Pro Forma Midpoint 10.000 2.80 15.3 64.7 64.7 7.7 N/A 36,443 11.9
Pro Forma Minimum 10.000 2.38 13.7 60.1 60.1 6.6 N/A 36,073 11.0
Comparative Group
-----------------
Averages 16.734 11.89 22.2 106.6 106.8 15.9 2.03 74,292 14.8
Medians 17.469 12.72 22.2 107.5 107.5 16.8 1.88 82,453 15.7
Arkansas Thrifts
----------------
Averages 23.083 61.70 16.1 150.9 150.9 17.9 2.37 361,754 12.3
Medians 22.250 42.44 16.7 148.0 148.0 19.2 2.52 378,700 15.0
Southeast Region Thrifts
------------------------
Averages 23.186 89.72 17.7 152.1 159.9 17.7 2.13 621,931 12.2
Medians 21.125 72.23 18.0 145.1 145.1 15.8 2.15 367,709 10.8
All Public Thrifts
------------------
Averages 23.857 251.94 16.8 149.9 157.8 15.3 1.80 1,612,216 10.8
Medians 21.250 60.07 16.7 142.7 147.1 14.3 1.76 397,730 9.4
Comparative Group
-----------------
ALBC AlbionBancCorp-NY 23.250 5.81 24.0 97.0 97.0 8.5 1.38 68,628 8.7
GUPB GFSBBancorp-NM 18.750 15.08 22.3 111.1 111.1 18.1 2.13 86,911 16.3
HBBI HomeBldngBncrp-IN 20.500 6.39 25.6 101.7 101.7 14.2 1.46 45,064 12.8
HHFC HarvestHome-OH 11.750 10.75 22.2 103.9 103.9 12.3 3.40 87,596 11.8
HZFS HorizonFinSvcs-IA 18.875 8.03 17.5 95.5 95.5 9.3 1.70 85,969 9.8
KYF KYFirstBancorp-KY 12.500 16.49 16.0 112.0 112.0 18.5 4.00 88,959 16.6
LOGN LogansprtFinCrp-IN 14.625 18.43 15.6 115.5 115.5 22.2 2.74 83,152 19.2
MIVI MissViewHoldCo-MN 15.500 12.69 17.8 96.3 96.3 18.2 1.03 69,775 18.9
NSLB NS&LBancorp-MO 18.500 13.09 30.8 112.1 112.1 21.9 2.70 59,711 19.6
SFFC StateFedFinCorp-IA 22.000 17.24 15.2 113.2 113.2 20.1 1.82 85,679 17.8
SOBI SobieskiBancorp-IN 16.438 12.74 27.0 95.4 95.4 15.6 1.95 81,754 15.1
USAB USABancshares-PA 8.125 5.97 32.5 126.2 128.6 12.4 - 48,303 10.8
6
FERGUSON & COMPANY Table III.3 - Pro Forma Comparisons Section III
- ------------------ -----------
Newport Federal Savings Bank
As of September 2, 1997
Ticker Name TEq/A EPS ROAA ROAE
(%) ($) (%) (%)
Newport Federal SB
------------------
Before Conversion 6.6 N/A 0.41 5.79
Pro Forma Supermaximum 13.8 0.55 0.56 3.88
Pro Forma Maximum 12.8 0.60 0.54 4.00
Pro Forma Midpoint 11.9 0.65 0.52 4.13
Pro Forma Minimum 11.0 0.73 0.50 4.28
Comparative Group
-----------------
Averages 14.8 0.81 0.82 5.03
Medians 15.7 0.82 0.68 4.67
Arkansas Thrifts
----------------
Averages 12.3 1.46 1.16 9.42
Medians 15.0 1.56 1.06 10.43
Southeast Region Thrifts
------------------------
Averages 12.0 1.38 1.08 9.23
Medians 10.4 1.32 0.99 8.82
All Public Thrifts
------------------
Averages 10.5 1.52 1.02 10.09
Medians 8.9 1.32 0.93 8.92
Comparative Group
-----------------
ALBC AlbionBancCorp-NY 8.7 0.97 0.37 4.03
GUPB GFSBBancorp-NM 16.3 0.84 0.93 4.89
HBBI HomeBldngBncrp-IN 12.8 0.80 0.52 4.03
HHFC HarvestHome-OH 11.8 0.53 0.57 4.44
HZFS HorizonFinSvcs-IA 9.8 1.08 0.55 5.25
KYF KYFirstBancorp-KY 16.6 0.78 1.13 5.83
LOGN LogansprtFinCrp-IN 19.2 0.94 1.51 7.40
MIVI MissViewHoldCo-MN 18.9 0.87 1.03 5.77
NSLB NS&LBancorp-MO 19.6 0.60 0.77 3.72
SFFC StateFedFinCorp-IA 17.8 1.45 1.37 7.36
SOBI SobieskiBancorp-IN 15.1 0.61 0.59 3.57
USAB USABancshares-PA 10.6 0.25 0.55 4.05
Note: Stock prices are closing prices or last trade. Pro forma
calculations for Newport FSB are based on sales at $10 a share
with a minimum of $2,380,000, midpoint of $2,800,000, maximum of
$3,220,000, and supermaximum of $3,703,000. Sources: Newport
FSB's audited and unaudited financial Statements, SNL
Securities, and F&C calculations.
7
SECTION IV
CORRELATION OF MARKET
VALUE
FERGUSON & COMPANY Section IV
- ------------------ ----------
IV. CORRELATION OF MARKET VALUE
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED
Certain factors must be considered to determine whether adjustments are
required in correlating Newport 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 Newport
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, Newport Federal is
below its comparative group in core income as a percentage of average assets.
Newport 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. Newport Federal's net interest income as a percent
of assets is 2.63% versus 3.51% for the comparatives. The difference is
attributable to 1) Newport Federal's lower ratio of interest-earning assets to
interest-bearing liabilities, which is caused by a combination of its lower
capital position and its higher investment in non-earning assets, i.e., its new
building; and 2) Newport Federal's deposit mix, which includes more certificate
accounts, which have higher rates. Exhibit III, page 2 indicates that Newport
Federal's cost of funds was in the 20th percentile for calendar years 1994,
1995, and 1996, and the 22nd percentile for the three months ending March 31,
1997. Generally, this means that Newport Federal's average cost of funds was
higher than approximately 80% of OTS supervised thrifts in its asset range. The
peer group that Newport Federal is compared to is all thrifts between $25
million and $50 million in assets filing quarterly reports with the Office of
Thrift Supervision.
Newport Federal's loan loss provisions are well above its comparative
group, with loss provisions of .26% of assets versus .08% of assets for the
comparative group. However, this is not indicative of higher levels of asset
problems at Newport Federal. This results simply from Newport Federal making a
significant addition to its loan loss allowance for this year. Newport Federal's
other operating income is .06% of average assets, versus .24% for the
comparative group. Newport Federal's lower ratio results from its business mix.
Newport Federal's operating expense ratio, at 2.03% of average assets,
is well below that of the comparative group, which is 2.42%. Newport Federal's
lower ratio results from its more traditional business mix.
After Newport Federal completes its stock conversion, its core income as
a percentage of average assets will increase. Table III.3 projects that Newport
Federal's return on assets will be .52% at the midpoint, versus a mean of .82%
and median of .68% for the comparative group.
Newport Federal's pro forma equity to assets ratio at the midpoint is
11.9%, versus a mean of 14.8% and median of 15.7% for the comparative group.
Newport Federal's pro forma return on equity is 4.13% at the midpoint versus a
mean of 5.03% and median of 4.67% for the comparative group.
Newport Federal's recorded earnings have been adjusted for appraisal
purposes. The Bank recorded higher than normal loan loss provisions, prior
service funding of a directors' retirement plan, and the SAIF resolution
assessment.
1
FERGUSON & COMPANY Section IV
- ------------------ ----------
Table IV.1 - Appraisal Earnings Adjustments
Net loss, year ended June 30, 1997 $-199,000
Plus SAIF assessment 179,000
Plus previous service cost of directors' benefit plan 286,000
Plus loan loss provisions in excess of normal amount--90,000 - 30,000 60,000
Less applicable taxes on above adjustments at 36% -189,000
--------------
Appraisal earnings, year ended June 30, 1997 $137,000
==============
Newport Federal's asset composition is less passive than the comparative
group. Newport Federal has a higher ratio of loans to assets, lower ratio of
investments and mortgage-backed securities to assets, higher ratio of deposits
to assets, lower ratio of borrowings to assets, and lower ratio of equity to
assets. From the risk factor viewpoint, Newport Federal is on level the
comparative group. Newport Federal has a slightly lower level of non performing
assets. Newport Federal's loan loss allowance is .60% of net loans, compared
with the comparative group, which is .62%. Its ratio of interest earning assets
to interest bearing liabilities (104.25%) is well below the comparative group
(116.14%). Newport Federal's ratio will be closer to the comparative group after
conversion. At the midpoint, Newport Federal's ratio would be approximately
112%, and at the supermaximum, it would be approximately 114%. From an interest
rate risk factor, Newport Federal probably has much less exposure than the
comparative group.
We believe that a slight downward adjustment is necessary relative to
-------------------
financial aspects of Newport Federal.
Market Area
Section II describes Newport Federal's market area.
We believe that no adjustment is required for Newport Federal's market
-------------
area.
Management
The President, who functions as CEO, has been with Newport Federal 6
years, serving as CEO the entire time. He is a certified public accountant with
approximately five years in public accounting, specializing in banking, and
three years in the thrift industry prior to joining Newport Federal in 1991. At
the time Mr. Snider joined Newport Federal, it was not in capital compliance and
it was operating under a regulatory agreement. These problems were resolved
within one year. Mr. Snider is the Bank's only executive, which places quite a
burden on him. The Board recognizes this and the Bank is currently searching for
an executive with skills to complement Mr. Snider. Newport Federal has no
management succession plan.
We believe no adjustment is required for Newport 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 2.03% and a median of 1.88%, while all public thrifts are
paying a mean of 1.80% and median of 1.76%. Newport Federal does not intend to
commit to a dividend initially.
2
FERGUSON & COMPANY Section IV
- ------------------ ----------
We believe that a slight downward adjustment is required relative to
-------------------
Newport Federal's intention to pay dividends.
Liquidity
The Holding Company has never issued capital stock to the public, and as
a result, no existing market for the Common Stock exists. Although the Holding
Company intends to list its Common Stock over the counter through the OTC
"Electronic Bulletin Board," there can be no assurance that a liquid trading
market will develop.
A public market having the desirable characteristics of depth,
liquidity, and orderliness depends upon the presence, in the market place, of
both willing buyers and sellers of the Common Stock. These characteristics are
not within the control of the Bank or the market.
The peer group includes companies with sufficient trading volume to
develop meaningful pricing characteristics for the stock. The market value of
the comparative group ranges from $5.81 million to $18.43 million, with a mean
value of $11.89 million. The midpoint of Newport Federal's valuation range is
$2.8 million at $10 a share, or 280,000 shares.
We believe that a downward adjustment is required relative to the
-------------------
liquidity of Newport 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
September 2, 1997--increased 40.1% to 677.6. 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 September 2, 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, but it has picked up since June 30,
1996. It closed 1996 at 483.6, up 28.4% from 1995. It is up 40.1% (to 677.6)
from December 31, 1996 to September 2, 1997.
The increase in the SNL Index, in general, has been parallel with the
increases in other equity markets with some interim fluctuations caused by
changes or anticipated changes in interest rates. Another factor, however, is
also notable. In other markets, increased prices are responding to improved
profits, with price to earnings ratios increasing as earnings potentials are
anticipated. However, the thrift IPO market has been affected by speculation
that the majority of the institutions will become viable consolidation
candidates and sell at some expanded multiple of book value.
ARKANSAS ACQUISITIONS
Table IV.2 provides information relative to acquisitions of financial
institutions in Arkansas between January 1, 1996 and May 31, 1997. There were
one thrift acquisition and seven bank acquisitions announced during that time
frame. Currently, there are four publicly held thrifts in the State of Arkansas.
There are sixty publicly held thrifts in the southeast region of the country.
Bank acquisitions in Arkansas since January 1, 1996, have averaged 209.7% of
tangible book value and 17.4 times earnings. The median
3
FERGUSON & COMPANY Section IV
- ------------------ ----------
price has been 210.6% of tangible book value and 14.6 times earnings. Thrifts
generally sell at lower price/book multiples than do banks. Thrifts in Arkansas
during that period have averaged 161.2% of tangible book value and 15.6 times
earnings.
EFFECT OF INTEREST RATES ON THRIFT STOCK
The current interest rate environment and the anticipated rate
environment will affect the pricing of thrift stocks and all other interest
sensitive stocks. As the economy continues to expand, the fear of inflation can
return. The Federal Reserve, in its resolve to curb inflation, has increased
rates in the past, but has more recently relented and passed several
opportunities to increase rates until March 25, 1997, when the Federal Open
Market Committee ("FOMC") increased the discount rate 25 basis points. In some
minds, this was an attempt to head off inflationary trends. According to the
FOMC, "This action was taken in light of persisting strength in demand, which is
progressively increasing the risk of inflationary imbalances developing in the
economy that would eventually undermine the long expansion."/1/ This increase
was clearly telegraphed by Chairman Greenspan who voiced concern about the
levels of the equity markets. Following the March 25 increase, unemployment
rates were announced at the 5.2% level, down from the 5.5% level at the
beginning of 1996, and significantly down from the 6.7% level at the beginning
of 1994./2/ The good news about unemployment gave way to speculation that the
March 25th increase was just the first of at least two or three increases, and
the speculation was given some credence at that time by rises in the Employment
Cost index, an increase in Unit Labor Cost, and an upward trend in the price of
crude oil. By April 1, 1997, following the rate increase, the equities markets
lost all of the gains registered since the first of the year. By the end of
April 1997, the market had begun a rebound and has trended upward since then.
There have been specific days of price adjustment, but the overall trend is up.
Chairman Greenspan, in recent public appearances, has not articulated concerns
about market levels and inflation.
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 if
there is a period of adjustment. However, if the mergers and acquisitions levels
drop, if there were another sharp and sustained rise in the interest rates, or
if other equity markets have protracted adjustment, the market in thrift
equities would also adjust. Recent earnings reports by financial institutions
that have made major acquisitions in the recent past have been disappointing.
Even Wells Fargo, the master at merger profitability, had to admit that its
latest acquisition produced losses.
What is likely to happen in the short to intermediate term is that rates
will float around current levels for the next few months. 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, but such increases are highly unlikely at this
time. Following the March increase in rates, additional data has caused the
concerns about rising inflation to moderate. Since lower rates benefit corporate
earnings, the housing and stock markets, and the bond market, the economy has
continued its expansion, but at a slightly slower rate.
With the Federal Reserve always ready to raise (or lower) rates as
economic conditions warrant, it is likely that before this expansion cycle is
over, interest rates will rise. The supply and demand portion of the equation is
nicely balanced, and a continuation of such equilibrium will probably restrain
rising rates in the near term. It is even possible that in the short-term,
interest rates might ease a bit.
- --------------------
/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
- ------------------ ----------
The consumer seems happier now than in the past. Job markets are strong
and the unemployment rate was recently 4.8%--the lowest since November 1973.
Consumer confidence is at a 28 year high. Our continuing economic health has
always been dependent upon meaningful consumer participation, because consumers
(household sector) actually account for 68% of the Gross Domestic Product
("GDP").
In the second quarter of 1997, consumers seemed to rein in their
consumption. This lowering of consumption may be only to catch their economic
breath and repay credit card debt and other personal debt which has accumulated.
Manufacturing is still strong, even with the slight drop in retail sales, home
purchases and other big ticket items.
With consumer confidence at a high level, jobs plentiful, inflation
seemingly in check, and the economy healthy and continuing to expand, why
shouldn't the economy continue to roll onward and upward? From an analytical
view, there is little on the economic horizon at this time that would interfere
with continuing economic expansion for at least another 12 to 18 months.
Thrift net interest margins have remained stable. The equilibrium in the
supply and demand portion of the interest rate market has helped continue the
profitability mode of the industry that started in 1993. Access to mortgage-
backed securities and derivatives has made it possible for many to be profitable
without making loans in significant volumes. With reduced deposit insurance
premiums, perhaps they will become more willing to compete for customer
deposits. However, even with portfolios replete with adjustable rate loans and
adjustable MBS's, there remains a real 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 February 27,
1997. At that time, the yield curve was relatively flat, with only a 119 basis
point ("BP") difference between the one year treasury bill rate and the 30 year
treasury. Since that time, the yield curve has changed very little with a 106 BP
spread between the one year treasury bill rate and the 30 year treasury rate at
August 29, 1997.
At February 27, 1997, the spread between the 1 year T-Bill and the 5
year T-Note was 73 BP, and the spread between the 5 year T-Note and the 30 year
bond was 46 BP. On August 29, 1997, the spreads were 64 and 42 BP, respectively.
From February 27, 1997 to August 29, 1997, the Fed Funds rate increased
40 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.
Newport Federal, with its minimal interest rate risk, is less vulnerable
to rising rates than most. However, Management of Newport Federal now must pay
more attention to spread management than gap management, to improve the Bank's
profitability. Its continuing growth in consumer and commercial loans will
produce a higher spread.
During 1993, conversion stocks often experienced first day 30% or more
increases in value. As Table IV.3 shows, recent price appreciation has become
quite robust, approaching 1993 levels. Table IV.3
5
FERGUSON & COMPANY Section IV
- ------------------ ----------
provides information on nine conversions completed since February 28, 1997 and
listed on major exchanges. The average change in price since conversion is a
gain of 57.8% and the median change is a gain of 55.0%. Within that group, all
have increased in value with a range of a low of 36.3% to a high of 80.0%. The
average increase in value at one day, one week, and one month after conversion
has been 43.4%, 44.4%, and 47.4%, respectively. The median increase in value at
one day, one week, and one month after conversion has been 33.8%, 37.5%, and
40.0%, respectively.
Because of the lack of complete earnings information on recent
conversions, a meaningful comparison of the price earnings ratios is difficult
to make. However, there is information, albeit limited, to review the price to
book ratio. The average price-to-book ratio, as of September 2, 1997, is 99.2%
and the median is 96.3%. That compares to the offering price to pro forma book,
where the average was 71.2% and the median was 71.9%.
Table IV.4 provides information on eight pink sheet conversions
completed since August 31, 1996. The average change in price since conversion is
a gain of 42.2% and the median change is a gain of 39.4%. Within that group, all
have increased in value with a range of a low of 27.5% to a high of 65.0%. The
average increase in value at one day, one week, and one month after conversion
has been 30.5%, 33.1%, and 34.3%, respectively. The median increase in value at
one day, one week, and one month after conversion has been 33.8%, 36.3%, 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 information to review the price to book ratio. The
average price-to-book ratio, as of September 2, 1997, is 91.3% and the median is
89.7%. That compares to the offering price to pro forma book, where the average
was 68.8% and the median was 69.2%.
We believe a downward adjustment is required for the new issue discount.
-------------------
Adjustments Conclusion
Adjustments Summary
- ------------------------------------------------------------------------------------------------------------------
No Change Upward Down
Financial Aspects X
Market Area X
Management X
Dividends X
Liquidity X
Thrift Equity Market Conditions X
- ------------------------------------------------------------------------------------------------------------------
Valuation Approach
Typically, investors rely on the price/earnings ratio as the most
appropriate indicator of value. We consider price/earnings to be one of the
important pricing methods in valuing a thrift stock. Price/book is a well
recognized yardstick for measuring the value of financial institution stocks in
general. Another method of viewing thrift values is price/assets, which is more
meaningful in situations where the subject is thinly capitalized. Given the
healthy condition of the thrift industry today, more emphasis is placed on
price/earnings and price/book. Generally, price/earnings and price/book should
be considered in tandem.
6
FERGUSON & COMPANY Section IV
- ------------------ ----------
Table III.3 presents Newport Federal's pro forma ratios and compares
them to the ratios of its comparative group and the publicly held thrift
industry as a whole. Newport Federal's net loss for the twelve months ended June
30, 1997, were approximately $199,000, with adjustments of $336,000 required to
determine appraisal earnings of $137,000. Management has indicated an intention,
through its plans for diversification of deposit and loan products, coupled with
its recent agreement to buy NationsBank's Newport office, to exhibit the
flexibility in operations needed to serve both the public and the institution.
The Bank is well positioned to manage reasonable interest rate variations. The
Bank projects healthy growth.
The comparative group traded at an average of 22.2 times earnings at
September 2, 1997, and at 106.6% of book value. The comparative group traded at
a median of 22.2 times earnings and a median of 107.5% of book value. At the
midpoint of the valuation range, Newport Federal is priced at 15.3 times
earnings and 64.7% of book value. At the maximum end of the range, Newport
Federal is priced at 16.8 times earnings and 68.5% of book value. At the
supermaximum, Newport Federal is priced at 18.3 times earnings and 72.3% of book
value.
The midpoint valuation of $2,800,000 represents a discount of 39.3% from
the average and a discount of 39.8% from the median of the comparative group on
a price/book basis. The price/earnings ratio for Newport Federal at the midpoint
represents a discount of 31.1% from the comparative group's mean and a discount
of 31.1% from the median price/earnings ratio.
The maximum valuation of $3,220,000 represents a discount of 35.7% from
the average and 36.3% from the median of the comparative group on a price/book
basis. The price/earnings ratio for Newport Federal at the maximum represents a
discount of 24.3% from the average and a discount of 24.3% from the median of
the comparative group.
As shown in Table IV.3, conversions closing since February 28, 1997,
have closed at an average price to book ratio of 71.2% and median of 71.9%.
Newport Federal's pro forma price to book ratio is 64.7% at the midpoint, 68.5%
at the maximum, and 72.3% at the supermaximum of the range. At the midpoint,
Newport Federal is 9.1% below the average and 10.0% below the median. At the
maximum of the range, Newport Federal is 3.8% below the average and 4.7% below
the median. At the supermaximum of the range, Newport Federal's pro forma price
to book ratio is 1.5% above the average and .6% above the median.
As shown in Table IV.4, pink sheet conversions closing since
August 31, 1996, have closed at an average price to book ratio of 68.8% and
median of 69.2%. Newport Federal's pro forma price to book ratio is 64.7% at the
midpoint, 68.5% at the maximum, and 72.3% at the supermaximum of the range. At
the midpoint, Newport Federal is 6.0% below the average and 6.5% below the
median. At the maximum of the range, Newport Federal is .4% below the average
and 1.0% below the median. At the supermaximum of the range, Newport Federal's
pro forma price to book ratio is 5.1% above the average and 4.5% above the
median.
Valuation Conclusion
We believe that as of September 2, 1997, the estimated pro forma market
value of Newport Federal was $2,800,000. The resulting valuation range was
$2,380,000 at the minimum to $3,220,000 at the maximum, based on a range of 15%
below and 15% above the midpoint valuation. The supermaximum is $3,703,000,
based on 1.15 times the maximum. Pro forma comparisons with the comparative
group are presented in Table III.3 based on calculations shown in Exhibit VII.
7
FERGUSON & COMPANY Table IV.2 - Arkansas Acquisitions Section IV
- ------------------ ----------
Bank/
Buyer City ST Thrift
- ----- ---- -- ------
Arkansas Banking Company Jonesboro AR Bank
First Commercial Corporation Little Rock AR Bank
First Commercial Corporation Little Rock AR Bank
First Security Bancorp Searcy AR Bank
First United Bancshares, Inc El Dorado AR Bank
Simmons First National Corporation Pine Bluff AR Bank
Southeast Arkansas Bank Parkdale AR Bank
First Federal Savings & Loan Assoc. Camden AR Thrift
Bank/
Seller City ST Thrift
- ------ ---- -- ------
Mercantile Bank of Batesville, NA Batesville AR Bank
First Central Corporation Searcy AR Bank
Southwest Bancshares, Inc. Jonesboro AR Bank
First Community Bank Conway AR Bank
Carlisle Bancshares Carlisle AR Bank
First Banks of Arkansas-Russellville, Searcy Russellville AR Bank
Wilmot State Bank Wilmot AR Bank
Heritage Banc Holding, Inc Little Rock AR Thrift
Maximun
Minimum
Average
Median
Average--banks
Median--banks
Average--thrifts
Median--thrifts
8
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.2 - Arkansas Acquisitions Section IV
- ------------------ ----------
Buyer Seller Ann'd
Total Total Completed/ Deal
Assets Assets Announce Terminated Value
Seller ($000) ($000) Date Status Date ($M)
- ------ ------ ------ ---- ------ ---- ----
Mercantile Bank of Batesville, NA 219,199 42,168 4/18/96 Completed 8/11/96 4.50
First Central Corporation 5,530,783 252,226 2/5/97 Pending NA 62.30
Southwest Bancshares, Inc. 5,304,554 755,065 12/20/96 Completed 5/15/97 128.00
First Community Bank 466,584 83,499 7/31/96 Pending NA NA
Carlisle Bancshares 1,336,020 100,794 4/1/96 Completed 8/30/96 13.00
First Banks of Arkansas-Russellville, Searcy 881,332 343,426 3/24/97 Pending NA 53.00
Wilmot State Bank 35,439 11,384 2/20/96 Completed 7/1/96 NA
Heritage Banc Holding, Inc 141,188 28,006 2/22/96 Completed 5/3/96 3.30
Maximun 5,530,783 755,065 128.00
Minimum 35,439 11,384 3.30
Average 1,739,387 202,071 44.02
Median 673,958 92,147 33.00
Average--banks 1,967,702 226,937 52.16
Median--banks 881,332 100,794 53.00
Average--thrifts 141,188 28,006 3.30
Median--thrifts 141,188 28,006 3.30
9
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.2 - Arkansas Acquisitions Section IV
- ------------------ ----------
Ann'd Ann'd Ann'd Final Final Final Final
Deal Deal Pr/ Deal Pr/ Deal Deal Deal Pr/ Deal Pr/
Pr/Bk Tg Bk 4-Qtr Value Pr/Bk Tg Bk 4-Qtr
Seller (%) (%) EPS (x) ($M) (%) (%) EPS (x)
- ------ ----- ------ -------- ------- ------- ------ -------
Mercantile Bank of Batesville, NA 139.8 151.1 29.0 4.50 141.6 152.7 24.9
First Central Corporation 215.8 215.8 14.6 NA NA NA NA
Southwest Bancshares, Inc. 248.6 263.1 18.2 138.20 258.2 271.8 24.1
First Community Bank NA NA NA NA NA NA NA
Carlisle Bancshares 185.0 208.0 11.4 13.60 184.1 205.0 10.7
First Banks of Arkansas-Russellville, Searcy 195.1 210.6 13.7 NA NA NA NA
Wilmot State Bank NA NA NA NA NA NA NA
Heritage Banc Holding, Inc 161.2 161.2 15.6 3.30 161.2 161.2 15.6
Maximun 248.6 263.1 29.0 138.20 258.2 271.8 24.9
Minimum 139.8 151.1 11.4 3.30 141.6 152.7 10.7
Average 190.9 201.6 17.1 39.90 186.3 197.7 18.8
Median 190.0 209.3 15.1 9.05 172.6 183.1 19.9
Average--banks 196.9 209.7 17.4 52.10 194.6 209.9 19.9
Median--banks 195.1 210.6 14.6 13.60 184.1 205.0 24.1
Average--thrifts 161.2 161.2 15.6 3.30 161.2 161.2 15.6
Median--thrifts 161.2 161.2 15.6 3.30 161.2 161.2 15.6
10
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.3 - Recent Conversions Section IV
- ------------------ ----------
(Completed since February 28, 1997)
Conversion Gross Offering
Assets Proceeds Price
Ticker Short Name State IPO Date ($000) ($000) ($)
FSPT FirstSpartan Financial Corp. SC 07/09/97 375,526 88,608 20.000
GOSB GSB Financial Corp. NY 07/09/97 96,323 22,483 10.000
FBNW FirstBank Corp. ID 07/02/97 133,194 19,838 10.000
CFBC Community First Banking Co. GA 07/01/97 352,532 48,271 20.000
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
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 Corp. OH 03/27/97 45,547 13,357 10.000
Maximum 375,526 88,608 20.000
Minimum 45,547 13,357 10.000
Average 166,040 32,445 12.222
Median 133,194 22,483 10.000
11
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.3 - Recent Conversions Section IV
- ------------------ ----------
(Completed since February 28, 1997)
Conversion Pricing Ratios
----------------------------------------------
Price/ Price/ Price/ Price/ Current Current Current
Pro-Forma Pro-Forma Pro-Forma Adjusted Stock Price/ Price/ Tang
Book Value Tang. Book Earnings Assets Price Book Value Book Value
Ticker (%) (%) (x) (%) ($) (%) (%)
FSPT 73.0 73.0 26.0 19.1 35.500 NA NA
GOSB 73.4 73.4 23.2 18.9 14.625 NA NA
FBNW 71.9 71.9 19.2 13.0 18.000 NA NA
CFBC 72.7 72.7 36.1 12.0 34.500 NA NA
HCBB 72.0 72.0 29.0 13.4 13.625 NA NA
PSFC 71.2 71.2 11.5 17.0 15.500 NA NA
HMLK 71.6 71.6 37.5 12.4 15.375 105.5 105.5
GSLA 63.8 63.8 38.7 28.4 15.750 96.3 96.3
MRKF 71.1 71.1 26.2 22.7 14.188 95.7 95.7
Maximum 73.4 73.4 38.7 28.4 35.500 105.5 105.5
Minimum 63.8 63.8 11.5 12.0 13.625 95.7 95.7
Average 71.2 71.2 27.5 17.4 19.674 99.2 99.2
Median 71.9 71.9 26.2 17.0 15.500 96.3 96.3
12
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.3 - Recent Conversions Section IV
- ------------------ ----------
(Completed since February 28, 1997)
Post Conversion Price Increase (Decrease)
Price One Price One Price One --------------------------------------------------
Day After Week After Month After One One One To
Conversion Conversion Conversion Day Week Month Date
Ticker ($) ($) ($) (%) (%) (%) (%)
FSPT 36.688 37.000 35.625 83.4 85.0 78.1 77.5
GOSB 14.625 14.875 14.375 46.3 48.8 43.8 46.3
FBNW 15.813 15.563 17.750 58.1 55.6 77.5 80.0
CFBC 31.875 33.000 34.000 59.4 65.0 70.0 72.5
HCBB 12.625 12.750 12.875 26.3 27.5 28.8 36.3
PSFC 12.563 12.875 13.250 25.6 28.8 32.5 55.0
HMLK 12.875 12.875 13.000 28.8 28.8 30.0 53.8
GSLA 13.375 13.750 14.000 33.8 37.5 40.0 57.5
MRKF 12.938 12.250 12.625 29.4 22.5 26.3 41.9
Maximum 36.688 37.000 35.625 83.4 85.0 78.1 80.0
Minimum 12.563 12.250 12.625 25.6 22.5 26.3 36.3
Average 18.153 18.326 18.611 43.4 44.4 47.4 57.8
Median 13.375 13.750 14.000 33.8 37.5 40.0 55.0
13
Source: SNL F&C Calculations
FERGUSON & COMPANY Section IV
- ------------------ ----------
Table IV.4 - Recent Pink Sheet Conversions
(Completed since August 31, 1996)
Conversion
Assets IPO Proceeds IPO Price
Ticker Short Name State IPO Date ($000) ($000) ($)
WSBH WSB Holding Co. PA 08/29/97 33,139 3,306 10.000
SCYT Security Bancorp, Inc. TN 06/30/97 44,121 4,364 10.000
SVBC Sistersville Bancorp Inc. WV 06/26/97 26,258 6,614 10.000
SFBK SFB Bancorp Inc. TN 05/30/97 46,579 7,670 10.000
RFFC Rocky Ford Financial Inc. CO 05/22/97 20,388 4,232 10.000
VBAS Vermilion Bancorp Inc. IL 03/26/97 35,459 3,968 10.000
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
Maximum 46,579 7,670 10.000
Minimum 20,388 1,918 10.000
Average 33,988 4,340 10.000
Median 34,299 4,100 10.000
14
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.4 - Recent Pink Sheet Conversions Section IV
- ------------------ ----------
(Completed since August 31, 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) (%) ($) (%) (%)
WSBH 71.4 71.4 NA 9.1 14.000 NA NA
SCYT 72.9 72.9 18.1 9.0 15.500 106.0 106.0
SVBC 65.4 65.4 26.7 20.1 13.875 86.0 86.0
SFBK 69.6 69.6 17.7 14.1 14.625 95.4 95.4
RFFC 68.8 68.8 17.7 17.2 13.500 89.7 89.7
VBAS 71.4 71.4 NA 10.1 12.750 80.0 80.0
FALN 65.5 65.5 8.8 8.2 16.500 97.8 97.8
MDWB 65.1 65.1 NA 5.0 13.000 84.2 84.2
Maximum 72.9 72.9 26.7 20.1 16.500 106.0 106.0
Minimum 65.1 65.1 8.8 5.0 12.750 80.0 80.0
Average 68.8 68.8 17.8 11.6 14.219 91.3 91.3
Median 69.2 69.2 17.7 9.6 13.938 89.7 89.7
15
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.4 - Recent Pink Sheet Conversion Section IV
- ------------------ ----------
(Completed since August 31, 1996)
Post Conversion Price Increase (Decrease)
Current Price One Price One Price One -------------------------------------------------
Price/ Day After Week After Month After One One One To
Earnings Conversion Conversion Conversion Day Week Month Date
Ticker (x) ($) ($) ($) (%) (%) (%) (%)
WSBH NA 13.500 14.000 NA 35.0 40.0 NA 40.0
SCYT NA 14.500 15.000 15.250 45.0 50.0 52.5 55.0
SVBC NA 13.750 13.875 14.250 37.5 38.8 42.5 38.8
SFBK NA 13.813 13.750 14.000 38.1 37.5 40.0 46.3
RFFC NA 13.000 13.125 13.500 30.0 31.3 35.0 35.0
VBAS 16.8 12.375 12.250 12.125 23.8 22.5 21.3 27.5
FALN 11.8 13.250 13.500 13.750 32.5 35.0 37.5 65.0
MDWB 10.2 10.250 11.000 11.125 2.5 10.0 11.3 30.0
Maximum 16.8 14.500 15.000 15.250 45.0 50.0 52.5 65.0
Minimum 10.2 10.250 11.000 11.125 2.5 10.0 11.3 27.5
Average 12.9 13.055 13.313 13.429 30.5 33.1 34.3 42.2
Median 11.8 13.375 13.625 13.750 33.8 36.3 37.5 39.4
16
Source: SNL F&C Calculations
FERGUSON & COMPANY Table IV.5 Section IV
- ------------------ ----------
Comparison of Pricing Ratios
Group Percent Premium
Newport Compared to (Discount) Versus
----------------------------- -----------------------------
FSB Average Median Average Median
--------------- ------------- -------------- -------------- --------------
Comparison of PE ratio at
midpoint to:
- ----------------------------------------
Comparative group 15.3 22.2 22.2 (31.1) (31.1)
Arkansas thrifts 15.3 16.1 16.7 (5.0) (8.4)
Southeast Region thrifts 15.3 17.7 18.0 (13.6) (15.0)
All public thrifts 15.3 16.8 16.7 (8.9) (8.4)
Recent conversions 15.3 27.5 26.2 (44.4) (41.6)
Recent pink sheet conversions 15.3 17.8 17.7 (14.0) (13.6)
Comparison of PE ratio at
maximum to:
- ----------------------------------------
Comparative group 16.8 22.2 22.2 (24.3) (24.3)
Arkansas thrifts 16.8 16.1 16.7 4.3 0.6
Southeast Region thrifts 16.8 17.7 18.0 (5.1) (6.7)
All public thrifts 16.8 16.8 16.7 - 0.6
Recent conversions 16.8 27.5 26.2 (38.9) (35.9)
Recent pink sheet conversions 16.8 17.8 17.7 (5.6) (5.1)
Comparison of PE ratio at
supermaximum to:
- ----------------------------------------
Comparative group 18.3 22.2 22.2 (17.6) (17.6)
Arkansas thrifts 18.3 16.1 16.7 13.7 9.6
Southeast Region thrifts 18.3 17.7 18.0 3.4 1.7
All public thrifts 18.3 16.8 16.7 8.9 9.6
Recent conversions 18.3 27.5 26.2 (33.5) (30.2)
Recent pink sheet conversions 18.3 17.8 17.7 2.8 3.4
Comparison of PB ratio at
midpoint to:
- ----------------------------------------
Comparative group 64.7 106.6 107.5 (39.3) (39.8)
Arkansas thrifts 64.7 150.9 148.0 (57.1) (56.3)
Southeast Region thrifts 64.7 152.1 145.1 (57.5) (55.4)
All public thrifts 64.7 149.9 142.7 (56.8) (54.7)
Recent conversions 64.7 71.2 71.9 (9.1) (10.0)
Recent pink sheet conversions 64.7 68.8 69.2 (6.0) (6.5)
Comparison of PB ratio at
maximum to:
- ----------------------------------------
Comparative group 68.5 106.6 107.5 (35.7) (36.3)
Arkansas thrifts 68.5 150.9 148.0 (54.6) (53.7)
Southeast Region thrifts 68.5 152.1 145.1 (55.0) (52.8)
All public thrifts 68.5 149.9 142.7 (54.3) (52.0)
Recent conversions 68.5 71.2 71.9 (3.8) (4.7)
Recent pink sheet conversions 68.5 68.8 69.2 (0.4) (1.0)
Comparison of PB ratio at
supermaximum to:
- ----------------------------------------
Comparative group 72.3 106.6 107.5 (32.2) (32.7)
Arkansas thrifts 72.3 150.9 148.0 (52.1) (51.1)
Southeast Region thrifts 72.3 152.1 145.1 (52.5) (50.2)
All public thrifts 72.3 149.9 142.7 (51.8) (49.3)
Recent conversions 72.3 71.2 71.9 1.5 0.6
Recent pink sheet conversions 72.3 68.8 69.2 5.1 4.5
17
Source: SNL F&C Calculations
FERGUSON & COMPANY Figure IV.1 - SNL Index Section IV
- ------------------ ----------
% CHANGE SINCE
---------------------
SNL PREVIOUS
DATE INDEX DATE 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%
12/31/96 483.6 28.4%
3/31/97 527.7 9.1% 9.1%
4/30/97 537.2 1.8% 11.1%
5/30/97 577.9 7.6% 19.5%
6/30/97 624.6 8.1% 29.2%
7/31/97 684.5 9.6% 41.5%
9/2/97 677.6 -1.0% 40.1%
SNL INDEX
[LINE GRAPH APPEARS HERE]
18
Source: SNL F&C Calculations
FERGUSON & COMPANY Figure IV.2 - Interest Rates Section IV
- ------------------ ----------
- ------------------------------------------------------------------------------------------- ------------
1 Year 5 Year 10 Year 30 Year 1 to 30
Fed Fds(*) T-bill Treas. Treas. Treas. Yr. Spread
- ------------------------------------------------------------------------------------------- ------------
27-Feb-97 5.16 5.52 6.25 6.45 6.71 1.19
- ------------------------------------------------------------------------------------------- ------------
14-Mar-97 5.19 5.69 6.41 6.58 6.85
31-Mar-97 5.40 5.91 6.75 6.96 7.15 1.24
- ------------------------------------------------------------------------------------------- ------------
18-Apr-97 5.48 6.00 6.80 6.92 7.13
30-Apr-97 5.45 5.89 6.57 6.71 6.95 1.06
- ------------------------------------------------------------------------------------------- ------------
16-May-97 5.49 5.85 6.54 6.68 6.90
30-May-97 5.43 5.85 6.60 6.75 6.99 1.14
- ------------------------------------------------------------------------------------------- ------------
13-Jun-97 5.48 5.71 6.40 6.52 6.80
27-Jun-97 5.42 5.64 6.33 6.45 6.75 1.11
- ------------------------------------------------------------------------------------------- ------------
18-Jul-97 5.44 5.53 6.14 6.23 6.52
8-Aug-97 5.50 5.57 6.22 6.37 6.63 1.06
- ------------------------------------------------------------------------------------------- ------------
22-Aug-97 5.59 5.53 6.12 6.27 6.57
29-Aug-97 5.56 5.60 6.24 6.38 6.66 1.06
- ------------------------------------------------------------------------------------------- ------------
Rates February 27, 1997 through August 29, 1997
[LINE GRAPH APPEARS HERE]
- ----------------------------------------------------------------------------------------------- -------------
1 Year 5 Year 10 Year 30 Year 1 to 30
Fed Fds(*) T-bill Treas. Treas. Treas. Yr. Spread
- ----------------------------------------------------------------------------------------------- -------------
29-Aug-97 5.56 5.60 6.24 6.38 6.66 1.06
- ----------------------------------------------------------------------------------------------- -------------
Current Yield Curve
[LINE GRAPH APPEARS HERE]
19
Source: SNL F&C Calculations
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.
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.
1
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 ($)
BANC BankAtlantic Bancorp Inc. Fort Lauderdale FL SE SAIF NASDAQ 11/29/83 12.750
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 24.125
BKUNA BankUnited Financial Corp. Coral Gables FL SE SAIF NASDAQ 12/11/85 12.125
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 21.750
CFTP Community Federal Bancorp Tupelo MS SE SAIF NASDAQ 03/26/96 17.375
CNIT CENIT Bancorp Inc. Norfolk VA SE SAIF NASDAQ 08/06/92 50.500
EBSI Eagle Bancshares Tucker GA SE SAIF NASDAQ 04/01/86 16.500
FFBH First Federal Bancshares of AR Harrison AR SE SAIF NASDAQ 05/03/96 21.000
FFBS FFBS BanCorp Inc. Columbus MS SE SAIF NASDAQ 07/01/93 23.000
FFCH First Financial Holdings Inc. Charleston SC SE SAIF NASDAQ 11/10/83 33.000
FFDB FirstFed Bancorp Inc. Bessemer AL SE SAIF NASDAQ 11/19/91 16.531
FFFC FFVA Financial Corp. Lynchburg VA SE SAIF NASDAQ 10/12/94 29.313
FFLC FFLC Bancorp Inc. Leesburg FL SE SAIF NASDAQ 01/04/94 32.000
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 7.750
FLFC First Liberty Financial Corp. Macon GA SE SAIF NASDAQ 12/06/83 22.500
FOBC Fed One Bancorp Wheeling WV SE SAIF NASDAQ 01/19/95 20.000
FSTC First Citizens Corp. Newnan GA SE SAIF NASDAQ 03/01/86 32.000
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 22.250
HARB Harbor Florida Bancorp (MHC) Fort Pierce FL SE SAIF NASDAQ 01/06/94 54.500
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 19.000
KSAV KS Bancorp Inc. Kenly NC SE SAIF NASDAQ 12/30/93 18.500
LIFB Life Bancorp Inc. Norfolk VA SE SAIF NASDAQ 10/11/94 24.625
PALM Palfed Inc. Aiken SC SE SAIF NASDAQ 12/15/85 16.125
PFSL Pocahontas FS&LA (MHC) Pocahontas AR SE SAIF NASDAQ 04/05/94 26.000
SOPN First Savings Bancorp Inc. Southern Pines NC SE SAIF NASDAQ 01/06/94 20.625
SSM Stone Street Bancorp Inc. Mocksville NC SE SAIF AMSE 04/01/96 21.250
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 20.000
VABF Virginia Beach Fed. Financial Virginia Beach VA SE SAIF NASDAQ 11/01/80 14.125
Maximum 54.500
Minimum 7.750
Average 23.186
Median 21.125
1
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.1 - Selected Publicly Held Southeast 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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
BANC 289.47 18.8 186.7 227.3 10.5 0.91 2,730,474 5.6 4.7 0.68 0.64
BFSB 27.56 15.5 135.9 135.9 20.4 2.32 135,455 14.2 14.2 1.56 1.28
BKUNA 107.54 21.3 159.8 197.2 6.0 - 1,807,192 5.6 4.9 0.57 0.58
CFFC 27.74 12.9 115.3 115.3 15.8 2.58 175,414 13.7 13.7 1.69 1.28
CFTP 80.42 22.9 124.5 124.5 38.5 1.73 209,035 27.5 27.5 0.76 1.61
CNIT 83.48 16.5 162.3 176.7 11.7 1.98 709,550 7.2 6.7 3.06 0.75
EBSI 93.38 16.0 132.5 132.5 11.0 3.64 848,490 8.3 8.3 1.03 0.76
FFBH 102.82 18.4 128.4 128.4 19.2 1.14 535,204 15.0 15.0 1.14 1.06
FFBS 35.82 18.7 135.5 135.5 27.4 2.17 130,762 19.2 19.2 1.23 1.46
FFCH 209.77 15.9 205.9 205.9 12.6 2.18 1,667,178 6.1 6.1 2.08 0.84
FFDB 19.03 12.5 114.2 125.2 10.8 3.03 176,528 9.4 8.7 1.32 0.94
FFFC 132.51 19.5 168.4 172.0 23.7 1.64 558,886 13.2 12.9 1.50 1.34
FFLC 74.16 22.1 142.1 142.1 19.2 1.50 387,097 13.5 13.5 1.45 1.01
FGHC 23.66 21.0 184.1 200.8 15.1 0.69 156,383 8.2 7.6 0.37 0.78
FLFC 173.81 14.7 182.9 202.9 13.5 1.78 1,288,919 7.4 6.7 1.53 0.94
FOBC 47.48 14.5 115.9 121.6 13.3 2.90 356,718 11.1 10.6 1.38 0.97
FSTC 58.85 11.4 177.9 228.7 17.3 1.38 338,857 9.7 7.7 2.80 1.90
FTF 39.83 13.3 148.0 148.0 23.3 2.52 171,358 15.7 15.7 1.67 1.73
HARB 270.88 20.7 289.1 299.0 24.3 2.57 1,116,718 8.4 8.1 2.63 1.22
HBS 23.76 15.2 113.4 117.6 15.8 2.95 150,416 13.9 13.5 1.25 1.15
KSAV 16.38 12.0 114.1 114.2 15.4 3.24 106,121 13.5 13.5 1.54 1.24
LIFB 242.48 18.7 154.5 159.1 16.3 1.95 1,488,257 10.6 10.3 1.32 0.86
PALM 85.21 21.8 155.5 155.5 12.8 0.74 664,863 8.2 8.2 0.74 0.60
PFSL 42.44 16.7 176.2 176.2 11.2 3.46 378,700 6.4 6.4 1.56 0.69
SOPN 75.88 17.6 113.0 113.0 25.8 3.88 294,217 22.8 22.8 1.17 1.69
SSM 40.33 21.0 131.7 131.7 38.0 2.12 106,115 28.9 28.9 1.01 1.71
TWIN 17.07 20.6 123.7 123.7 15.9 3.20 107,345 12.9 12.9 0.97 0.75
VABF 70.29 24.8 166.2 166.2 11.4 1.42 617,818 6.9 6.9 0.57 0.46
Maximum 289.47 24.8 289.1 299.0 38.5 3.88 2,730,474 28.9 28.9 3.06 1.90
Minimum 16.38 11.4 113.0 113.0 6.0 - 106,115 5.6 4.7 0.37 0.46
Average 89.72 17.7 152.1 159.9 17.7 2.13 621,931 12.2 12.0 1.38 1.08
Median 72.23 18.0 145.1 145.1 15.8 2.15 367,709 10.8 10.4 1.32 0.99
2
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.1 - Selected Publicly Held Southeast Thrifts
- ------------------
Core NPAs/ Price Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAA
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
BANC 10.83 N 09/02/97 0.87 19.9 0.16 0.66 11.50
BFSB 8.90 N 09/02/97 - 15.9 0.38 1.22 8.52
BKUNA 8.04 N 09/02/97 0.60 21.7 0.14 0.48 8.00
CFFC 9.23 N 09/02/97 0.39 13.9 0.39 1.16 8.41
CFTP 4.97 N 09/02/97 0.30 29.0 0.15 1.27 4.30
CNIT 10.46 N 09/02/97 0.42 15.2 0.83 0.81 11.22
EBSI 8.78 N 09/02/97 1.07 15.3 0.27 0.76 8.92
FFBH 6.61 N 09/02/97 0.19 22.8 0.23 0.81 5.24
FFBS 7.50 N 09/02/97 0.03 23.0 0.25 1.17 6.06
FFCH 13.67 N 09/02/97 1.61 15.3 0.54 0.84 13.68
FFDB 9.54 N 09/02/97 0.72 12.2 0.34 0.98 10.05
FFFC 9.56 N 09/02/97 0.18 17.9 0.41 1.35 10.37
FFLC 6.56 N 09/02/97 0.19 20.5 0.39 0.96 6.91
FGHC 9.53 N 09/02/97 1.41 16.2 0.12 1.00 11.97
FLFC 12.81 N 09/02/97 0.81 13.7 0.41 1.02 13.61
FOBC 8.35 N 09/02/97 0.15 14.7 0.34 0.93 8.36
FSTC 19.95 N 09/02/97 NA 5.2 1.55 3.68 38.97
FTF 10.43 N 09/02/97 0.12 11.8 0.47 1.86 11.74
HARB 14.82 N 09/02/97 0.46 20.3 0.67 1.21 14.61
HBS 7.72 N 09/02/97 1.97 14.4 0.33 1.12 7.99
KSAV 8.86 N 09/02/97 0.35 12.2 0.38 1.39 10.15
LIFB 8.06 N 09/02/97 0.39 18.7 0.33 0.89 8.33
PALM 7.44 N 09/02/97 2.12 16.1 0.25 0.82 9.99
PFSL 11.23 N 09/02/97 0.10 17.1 0.38 0.66 10.39
SOPN 6.96 N 09/02/97 0.08 16.1 0.32 1.80 7.60
SSM 4.84 N 09/02/97 - 38.0 0.14 0.98 2.77
TWIN 5.88 N 09/02/97 0.08 16.7 0.30 0.91 7.08
VABF 6.82 N 09/02/97 0.68 20.8 0.17 0.54 7.98
Maximum 19.95 2.12 38.0 1.55 3.68 38.97
Minimum 4.84 - 5.2 0.12 0.48 2.77
Average 9.23 0.57 17.7 0.38 1.12 10.17
Median 8.82 0.39 16.1 0.34 0.98 8.72
3
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.2 - Selected Publicly Held Arkansas Thrifts
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
FFBH First Federal Bancshares of AR Harrison AR SE SAIF NASDAQ 05/03/96 21.000
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 22.250
PFSL Pocahontas FS&LA (MHC) Pocahontas AR SE SAIF NASDAQ 04/05/94 26.000
Maximum 26.000
Minimum 21.000
Average 23.083
Median 22.250
4
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.2 - Selected Publicly Held Arkansas 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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
FFBH 102.82 18.4 128.4 128.4 19.2 1.14 535,204 15.0 15.0 1.14 1.06
FTF 39.83 13.3 148.0 148.0 23.3 2.52 171,358 15.7 15.7 1.67 1.73
PFSL 42.44 16.7 176.2 176.2 11.2 3.46 378,700 6.4 6.4 1.56 0.69
Maximum 102.82 18.4 176.2 176.2 23.3 3.46 535,204 15.7 15.7 1.67 1.73
Minimum 39.83 13.3 128.4 128.4 11.2 1.14 171,358 6.4 6.4 1.14 0.69
Average 61.70 16.1 150.9 150.9 17.9 2.37 361,754 12.3 12.3 1.46 1.16
Median 42.44 16.7 148.0 148.0 19.2 2.52 378,700 15.0 15.0 1.56 1.06
5
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.2 - Selected Publicly Held Arkansas Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
FFBH 6.61 N 09/02/97 0.19 22.8 0.23 0.81 5.24
FTF 10.43 N 09/02/97 0.12 11.8 0.47 1.86 11.74
PFSL 11.23 N 09/02/97 0.10 17.1 0.38 0.66 10.39
Maximum 11.23 0.19 22.8 0.47 1.86 11.74
Minimum 6.61 0.10 11.8 0.23 0.66 5.24
Average 9.42 0.14 17.3 0.36 1.11 9.12
Median 10.43 0.12 17.1 0.38 0.81 10.39
6
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.3 - Comparative General Characterstics
- ------------------
Total Current Current
Number Assets Stock Market
of ($000) Price Value
Ticker Short Name City State Offices MRQ IPO Date ($) ($M)
ALBC Albion Banc Corp. Albion NY 2 68,628 07/26/93 23.250 5.81
GUPB GFSB Bancorp Inc. Gallup NM 1 86,911 06/30/95 18.750 15.08
HBBI Home Building Bancorp Washington IN 2 45,064 02/08/95 20.500 6.39
HHFC Harvest Home Financial Corp. Cheviot OH 3 87,596 10/10/94 11.750 10.75
HZFS Horizon Financial Svcs Corp. Oskaloosa IA 3 85,969 06/30/94 18.875 8.03
KYF Kentucky First Bancorp Inc. Cynthiana KY 2 88,959 08/29/95 12.500 16.49
LOGN Logansport Financial Corp. Logansport IN 1 83,152 06/14/95 14.625 18.43
MIVI Mississippi View Holding Co. Little Falls MN 1 69,775 03/24/95 15.500 12.69
NSLB NS&L Bancorp Inc. Neosho MO 2 59,711 06/08/95 18.500 13.09
SFFC StateFed Financial Corporation Des Moines IA 2 85,679 01/05/94 22.000 17.24
SOBI Sobieski Bancorp Inc. South Bend IN 3 81,754 03/31/95 16.438 12.74
USAB USABancshares, Inc. Philadelphia PA 1 48,303 NA 8.125 5.97
Maximum 3 88,959 23.250 18.43
Minimum 1 45,064 8.125 5.81
Average 2 74,292 16.734 11.89
Median 2 82,453 17.469 12.72
7
Source: SNL F&C Calculations
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
Albion Banc Corp. 68,628 16,964 8,580 48,247 - - - 2,863 52,322
GFSB Bancorp Inc. 86,911 40,582 32,789 45,026 - - - 1,303 55,285
Home Building Bancorp 45,064 15,672 5,086 28,229 - - - 1,163 35,212
Harvest Home Financial Corp. 87,596 40,835 - 45,063 - - - 1,698 57,072
Horizon Financial Svcs Corp. 85,969 31,519 - 52,193 551 - - 1,706 57,641
Kentucky First Bancorp Inc. 88,959 37,041 21,140 48,920 - - - 2,998 55,443
Logansport Financial Corp. 83,152 19,871 8,032 59,490 8 - - 3,783 60,400
Mississippi View Holding Co. 69,775 23,617 4,449 44,147 - - - 1,800 55,352
NS&L Bancorp Inc. 59,711 24,788 4,750 33,238 - - - 1,685 44,018
StateFed Financial Corporation 85,679 12,496 - NA 2,703 - - 2,302 50,346
Sobieski Bancorp Inc. 81,754 18,091 13,709 61,135 11 - - 2,517 59,387
USABancshares, Inc. 48,303 26,327 8,260 20,765 - - 98 1,113 38,565
Maximum 88,959 40,835 32,789 61,135 2,703 - 98 3,783 60,400
Minimum 45,064 12,496 - 20,765 - - - 1,113 35,212
Average 74,292 25,650 8,900 44,223 273 - 8 2,078 51,754
Median 82,453 24,203 6,559 45,063 - - - 1,753 55,319
8
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.4 - Comparatives Balance Sheets
- ------------------
Regulatory Regulatory
Total Subordinated Other Total Preferred Common Total Tangible Core
Borrowings Debt Liabilities Liabilities Equity Equity Equity Capital Capital
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ MRQ
Albion Banc Corp. 9,263 - 1,052 62,637 - 5,991 5,991 NA NA
GFSB Bancorp Inc. 16,450 - 1,010 72,745 - 14,166 14,166 - NA
Home Building Bancorp 3,700 - 378 39,290 - 5,774 5,774 4,458 4,458
Harvest Home Financial Corp. 19,650 - 525 77,247 - 10,349 10,349 NA NA
Horizon Financial Svcs Corp. 19,102 - 813 77,556 - 8,413 8,413 6,238 6,238
Kentucky First Bancorp Inc. 17,970 - 819 74,232 - 14,727 14,727 13,023 13,023
Logansport Financial Corp. 4,500 - 2,292 67,192 - 15,960 15,960 16,011 16,011
Mississippi View Holding Co. - - 1,252 56,604 - 13,171 13,171 10,647 10,647
NS&L Bancorp Inc. 3,000 - 1,014 48,032 - 11,679 11,679 8,650 8,650
StateFed Financial Corporation 19,000 - 1,100 70,446 - 15,233 15,233 NA NA
Sobieski Bancorp Inc. 9,500 - 506 69,393 - 12,361 12,361 NA NA
USABancshares, Inc. 4,205 - 337 43,107 - 5,196 5,196 NA 4,660
Maximum 19,650 - 2,292 77,556 - 15,960 15,960 16,011 16,011
Minimum - - 337 39,290 - 5,196 5,196 - 4,458
Average 10,528 - 925 63,207 - 11,085 11,085 8,432 9,098
Median 9,382 - 915 68,293 - 12,020 12,020 8,650 8,650
9
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.4 - Comparatives Balance Sheets
- ------------------
Regulatory
Total Tangible Core Risk-Based NPAs/
Capital Capital/ Capital/ Capital/ Assets
($000) Tangible Adj Tangible Risk-Weightd (%)
Short Name MRQ Assets (%) Assets (%) Assets (%) MRQ
Albion Banc Corp. NA 8.22 8.22 16.67 0.72
GFSB Bancorp Inc. NA 14.54 14.54 36.76 0.18
Home Building Bancorp 4,541 10.07 10.07 20.95 0.38
Harvest Home Financial Corp. NA NA NA NA 0.11
Horizon Financial Svcs Corp. 6,494 7.78 7.78 14.59 0.96
Kentucky First Bancorp Inc. 13,395 18.20 18.20 34.80 -
Logansport Financial Corp. 16,239 21.82 21.82 41.64 0.61
Mississippi View Holding Co. 11,074 14.92 14.92 31.72 0.28
NS&L Bancorp Inc. 8,692 13.83 13.83 38.51 0.02
StateFed Financial Corporation NA 13.19 13.19 22.74 NA
Sobieski Bancorp Inc. NA 11.85 11.85 28.52 0.15
USABancshares, Inc. 4,867 NA NA NA 0.67
Maximum 16,239 21.82 21.82 41.64 0.96
Minimum 4,541 7.78 7.78 14.59 -
Average 9,329 13.44 13.44 28.69 0.37
Median 8,692 13.51 13.51 30.12 0.28
Loan Loss Publicly Tangible
Reserves/ Reserves/ Reported Publicly Rep
Assets NPLs B Value B Value
(%) (%) ($) ($)
Short Name MRQ MRQ MRQ MRQ
Albion Banc Corp. 0.39 53.94 23.96 23.96
GFSB Bancorp Inc. 0.36 199.36 16.88 16.88
Home Building Bancorp 0.18 47.98 20.16 20.16
Harvest Home Financial Corp. 0.13 117.00 11.31 11.31
Horizon Financial Svcs Corp. 0.32 57.78 19.77 19.77
Kentucky First Bancorp Inc. 0.42 NM 11.16 11.16
Logansport Financial Corp. 0.27 45.60 12.66 12.66
Mississippi View Holding Co. 1.24 447.15 16.09 16.09
NS&L Bancorp Inc. 0.07 466.67 16.51 16.51
StateFed Financial Corporation NA NA 19.44 19.44
Sobieski Bancorp Inc. 0.24 158.73 17.24 17.24
USABancshares, Inc. 0.43 63.50 6.44 6.32
Maximum 1.24 466.67 23.96 23.96
Minimum 0.07 45.60 6.44 6.32
Average 0.37 165.77 15.97 15.96
Median 0.32 90.25 16.70 16.70
10
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.4 - Comparatives Balance Sheets
- ------------------
Earn Assets/ Full-Time Loans Cash & Invest.
Int Bearing Equivalent Serviced (sans MBS)/ MBS/
Liabilities Employees For Others Assets Assets
(%) (Actual) ($000) (%) (%)
Short Name MRQ MRQ MRQ MRQ MRQ
Albion Banc Corp. 107.05 NA NA 12.22 12.50
GFSB Bancorp Inc. 120.83 16 - 8.97 37.73
Home Building Bancorp 109.24 15 - 23.49 11.29
Harvest Home Financial Corp. 112.43 NA NA 46.62 -
Horizon Financial Svcs Corp. 109.61 28 1,613 36.66 -
Kentucky First Bancorp Inc. 117.86 22 - 17.87 23.76
Logansport Financial Corp. 122.75 13 - 14.24 9.66
Mississippi View Holding Co. 123.70 21 - 27.47 6.38
NS&L Bancorp Inc. 123.52 NA - 33.56 7.95
StateFed Financial Corporation 116.34 NA NA 14.58 -
Sobieski Bancorp Inc. 115.64 22 - 5.36 16.77
USABancshares, Inc. 114.65 NA - 37.40 17.10
Maximum 123.70 28 1,613 46.62 37.73
Minimum 107.05 13 - 5.36 -
Average 116.14 20 179 23.20 11.93
Median 115.99 21 - 20.68 10.47
11
Source: SNL F&C Calculations
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
Albion Banc Corp. 63,492 67 67 0.11 0.11 0.37
GFSB Bancorp Inc. 78,351 578 578 0.74 0.74 0.93
Home Building Bancorp 44,091 90 90 0.20 0.20 0.52
Harvest Home Financial Corp. 81,870 243 243 0.30 0.30 0.57
Horizon Financial Svcs Corp. 79,717 278 278 0.35 0.35 0.55
Kentucky First Bancorp Inc. 87,628 762 762 0.87 0.87 1.13
Logansport Financial Corp. 79,217 931 931 1.18 1.18 1.51
Mississippi View Holding Co. 69,548 486 486 0.70 0.70 1.03
NS&L Bancorp Inc. 58,716 290 290 0.49 0.49 0.77
StateFed Financial Corporation 81,192 921 921 1.13 1.13 1.37
Sobieski Bancorp Inc. 80,309 247 247 0.31 0.31 0.59
USABancshares, Inc. 36,537 219 219 0.60 0.60 0.55
Maximum 87,628 931 931 1.18 1.18 1.51
Minimum 36,537 67 67 0.11 0.11 0.37
Average 70,056 426 426 0.58 0.58 0.82
Median 78,784 284 284 0.55 0.55 0.68
ROAE Loan Total
Before Core Loss Noninterest
ROAE Extra ROAE Provision Income
(%) (%) (%) ($000) ($000)
Short Name LTM LTM LTM LTM LTM
Albion Banc Corp. 1.14 1.14 4.03 140 269
GFSB Bancorp Inc. 3.86 3.86 4.89 21 57
Home Building Bancorp 1.59 1.59 4.03 57 102
Harvest Home Financial Corp. 2.31 2.31 4.44 7 60
Horizon Financial Svcs Corp. 3.31 3.31 5.25 252 357
Kentucky First Bancorp Inc. 4.48 4.48 5.83 15 156
Logansport Financial Corp. 5.74 5.74 7.40 14 124
Mississippi View Holding Co. 3.93 3.93 5.77 - 166
NS&L Bancorp Inc. 2.39 2.39 3.72 (1) 197
StateFed Financial Corporation 6.11 6.11 7.36 36 108
Sobieski Bancorp Inc. 1.87 1.87 3.57 - 157
USABancshares, Inc. 4.44 4.44 4.05 75 135
Maximum 6.11 6.11 7.40 252 357
Minimum 1.14 1.14 3.57 (1) 57
Average 3.43 3.43 5.03 51 157
Median 3.59 3.59 4.67 18 146
12
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Total Net Loan Common Dividend
Noninterest Chargeoffs/ LTM EPS Dividends Payout
Expense Avg Loans After Extra Per Share Ratio
($000) (%) ($) ($) (%)
Short Name LTM LTM LTM LTM LTM
Albion Banc Corp. 1,964 0.24 0.27 0.31 114.81
GFSB Bancorp Inc. 1,505 0.05 0.67 0.75 111.94
Home Building Bancorp 1,048 0.09 0.34 0.30 88.24
Harvest Home Financial Corp. 1,680 - 0.26 3.40 NM
Horizon Financial Svcs Corp. 1,925 NA 0.68 0.32 47.06
Kentucky First Bancorp Inc. 1,761 0.02 0.60 3.50 583.33
Logansport Financial Corp. 1,252 0.03 0.73 3.40 465.75
Mississippi View Holding Co. 1,666 0.03 0.60 0.16 26.67
NS&L Bancorp Inc. 1,334 - 0.44 0.50 113.64
StateFed Financial Corporation 1,138 - 1.20 0.40 33.33
Sobieski Bancorp Inc. 1,953 NA 0.32 0.14 43.75
USABancshares, Inc. 1,642 0.02 0.27 - -
Maximum 1,964 0.24 1.20 3.50 583.33
Minimum 1,048 - 0.26 - -
Average 1,572 0.05 0.53 1.10 148.05
Median 1,654 0.03 0.52 0.36 88.24
Interest Interest Net Interest Gain on
Income/ Expense/ Income/ Sale/
Avg Assets Avg Assets Avg Assets Avg Assets
(%) (%) (%) (%)
Short Name LTM LTM LTM LTM
Albion Banc Corp. 7.51 4.06 3.46 0.02
GFSB Bancorp Inc. 7.30 4.01 3.29 0.02
Home Building Bancorp 7.52 4.16 3.36 0.03
Harvest Home Financial Corp. 7.08 4.25 2.83 0.01
Horizon Financial Svcs Corp. 7.39 4.27 3.13 0.10
Kentucky First Bancorp Inc. 7.18 3.67 3.50 -
Logansport Financial Corp. 7.46 3.68 3.78 (0.11)
Mississippi View Holding Co. 7.41 3.62 3.80 0.02
NS&L Bancorp Inc. 6.48 3.41 3.07 0.05
StateFed Financial Corporation 7.89 4.47 3.43 -
Sobieski Bancorp Inc. 7.10 3.90 3.20 0.08
USABancshares, Inc. 9.77 4.48 5.28 0.08
Maximum 9.77 4.48 5.28 0.10
Minimum 6.48 3.41 2.83 (0.11)
Average 7.51 4.00 3.51 0.03
Median 7.40 4.04 3.40 0.02
13
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Real Noninterest G&A Noninterest Net Oper
Estate Income/ Expense/ Expense/ Expenses/
Expense Avg Assets Avg Assets Avg Assets Avg Assets
($000) (%) (%) (%) (%)
Short Name LTM LTM LTM LTM LTM
Albion Banc Corp. (39) 0.42 3.15 3.09 2.73
GFSB Bancorp Inc. - 0.07 1.92 1.92 1.85
Home Building Bancorp - 0.23 2.38 2.38 2.15
Harvest Home Financial Corp. - 0.07 2.05 2.05 1.98
Horizon Financial Svcs Corp. 53 0.45 2.35 2.41 1.90
Kentucky First Bancorp Inc. - 0.18 2.01 2.01 1.83
Logansport Financial Corp. (2) 0.16 1.58 1.58 1.43
Mississippi View Holding Co. (18) 0.24 2.42 2.40 2.18
NS&L Bancorp Inc. - 0.34 2.27 2.27 1.94
StateFed Financial Corporation (562) 0.13 2.09 1.40 1.96
Sobieski Bancorp Inc. - 0.20 2.43 2.43 2.24
USABancshares, Inc. - 0.37 4.38 4.49 4.01
Maximum 53 0.45 4.38 4.49 4.01
Minimum (562) 0.07 1.58 1.40 1.43
Average (47) 0.24 2.42 2.37 2.18
Median - 0.22 2.31 2.33 1.97
Total Amortization Extra and
Nonrecurring of Tax After Tax
Expense Intangibles Provision Items
($000) ($000) ($000) ($000)
Short Name LTM LTM LTM LTM
Albion Banc Corp. 275 - 30 -
GFSB Bancorp Inc. 250 - 298 -
Home Building Bancorp 224 - 177 -
Harvest Home Financial Corp. 368 - 103 -
Horizon Financial Svcs Corp. 331 - 145 -
Kentucky First Bancorp Inc. 351 - 335 -
Logansport Financial Corp. 334 - 514 -
Mississippi View Holding Co. 363 - 305 -
NS&L Bancorp Inc. 281 - 128 -
StateFed Financial Corporation 291 - 503 -
Sobieski Bancorp Inc. 414 - 182 -
USABancshares, Inc. - 42 158 -
Maximum 414 42 514 -
Minimum - - 30 -
Average 290 4 240 -
Median 311 - 180 -
14
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.5 - Comparatives Operations
- ------------------
Yield on Cost of Interest Loan Loss
Efficiency Preferred Int Earning Int Bearing Effective Yield Provision/
Ratio Dividends Assets Liabilities Tax Rate Spread Avg Assets
(%) ($000) (%) (%) (%) (%) (%)
Short Name LTM LTM LTM LTM LTM LTM LTM
Albion Banc Corp. 81.32 - 7.88 4.60 30.93 3.28 0.22
GFSB Bancorp Inc. 57.05 - 7.37 5.03 34.02 2.34 0.03
Home Building Bancorp 66.16 - 7.82 4.70 66.29 3.12 0.13
Harvest Home Financial Corp. 70.65 - 7.22 4.91 29.77 2.31 0.01
Horizon Financial Svcs Corp. 65.68 - 8.06 4.94 34.28 3.12 0.32
Kentucky First Bancorp Inc. 54.62 - 7.48 4.60 30.54 2.88 0.02
Logansport Financial Corp. 40.17 - 7.68 4.79 35.57 2.89 0.02
Mississippi View Holding Co. 59.99 - 7.47 4.48 38.56 2.99 -
NS&L Bancorp Inc. 66.70 - 6.65 4.39 30.62 2.26 (0.00)
StateFed Financial Corporation 58.84 - 8.34 5.58 35.32 2.76 0.04
Sobieski Bancorp Inc. 71.59 - 7.56 4.71 42.42 2.85 -
USABancshares, Inc. 77.48 - 10.01 5.32 41.91 4.69 0.21
Maximum 81.32 - 10.01 5.58 66.29 4.69 0.32
Minimum 40.17 - 6.65 4.39 29.77 2.26 (0.00)
Average 64.19 - 7.80 4.84 37.52 2.96 0.08
Median 65.92 - 7.62 4.75 34.80 2.89 0.02
15
Source: SNL F&C Calculations
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparatives Pricing Charactersitics
Current Current Price/ Current
Stock Market LTM Price/
Abbreviated Price Value Core EPS Book V
Ticker Name City State ($) ($M) (x) (%)
ALBC AlbionBancCorp-NY Albion NY 23.250 5.81 24.0 97.0
GUPB GFSBBancorp-NM Gallup NM 18.750 15.08 22.3 111.1
HBBI HomeBldngBncrp-IN Washington IN 20.500 6.39 25.6 101.7
HHFC HarvestHome-OH Cheviot OH 11.750 10.75 22.2 103.9
HZFS HorizonFinSvcs-IA Oskaloosa IA 18.875 8.03 17.5 95.5
KYF KYFirstBancorp-KY Cynthiana KY 12.500 16.49 16.0 112.0
LOGN LogansprtFinCrp-IN Logansport IN 14.625 18.43 15.6 115.5
MIVI MissViewHoldCo-MN Little Falls MN 15.500 12.69 17.8 96.3
NSLB NS&LBancorp-MO Neosho MO 18.500 13.09 30.8 112.1
SFFC StateFedFinCorp-IA Des Moines IA 22.000 17.24 15.2 113.2
SOBI SobieskiBancorp-IN South Bend IN 16.438 12.74 27.0 95.4
USAB USABancshares-PA Philadelphia PA 8.125 5.97 32.5 126.2
Maximum 23.250 18.43 32.5 126.2
Minimum 8.125 5.81 15.2 95.4
Average 16.734 11.89 22.2 106.6
Median 17.469 12.72 22.2 107.5
16
Source: SNL F&C Calculations
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparatives Pricing Charactersitics
Tangible ROACE
Current Current Total Equity/ Equity/ Core Core Core Before
Price/ T Price/ Dividend Assets Assets T Assets EPS ROAA ROAE Extra
Book V Assets Yield ($000) (%) (%) ($) (%) (%) (%)
Ticker (%) (%) (%) MRQ MRQ MRQ LTM LTM LTM LTM
ALBC 97.0 8.5 1.38 68,628 8.7 8.7 0.97 0.37 4.03 1.14
GUPB 111.1 18.1 2.13 86,911 16.3 16.3 0.84 0.93 4.89 3.86
HBBI 101.7 14.2 1.46 45,064 12.8 12.8 0.80 0.52 4.03 1.59
HHFC 103.9 12.3 3.40 87,596 11.8 11.8 0.53 0.57 4.44 2.31
HZFS 95.5 9.3 1.70 85,969 9.8 9.8 1.08 0.55 5.25 3.31
KYF 112.0 18.5 4.00 88,959 16.6 16.6 0.78 1.13 5.83 4.48
LOGN 115.5 22.2 2.74 83,152 19.2 19.2 0.94 1.51 7.40 5.74
MIVI 96.3 18.2 1.03 69,775 18.9 18.9 0.87 1.03 5.77 3.93
NSLB 112.1 21.9 2.70 59,711 19.6 19.6 0.60 0.77 3.72 2.39
SFFC 113.2 20.1 1.82 85,679 17.8 17.8 1.45 1.37 7.36 6.11
SOBI 95.4 15.6 1.95 81,754 15.1 15.1 0.61 0.59 3.57 1.87
USAB 128.6 12.4 - 48,303 10.8 10.6 0.25 0.55 4.05 4.44
Maximum 128.6 22.2 4.00 88,959 19.6 19.6 1.45 1.51 7.40 6.11
Minimum 95.4 8.5 - 45,064 8.7 8.7 0.25 0.37 3.57 1.14
Average 106.8 15.9 2.03 74,292 14.8 14.8 0.81 0.82 5.03 3.43
Median 107.5 16.8 1.88 82,453 15.7 15.7 0.82 0.68 4.67 3.59
17
Source: SNL F&C Calculations
FERGUSON & COMPANY
- ------------------
Exhibit II.6 - Comparatives Pricing Characteristics
NPAs/ Price/ Core Core Core
Merger Current Assets Core EPS ROAA ROAE
Target? Pricing (%) EPS ($) (%) (%)
Ticker (Y/N) Date MRQ (x) MRQ MRQ MRQ
ALBC N 09/02/97 0.72 32.3 0.18 0.27 3.03
GUPB N 09/02/97 0.18 22.3 0.21 0.81 4.74
HBBI N 09/02/97 0.38 18.3 0.28 0.72 5.67
HHFC N 09/02/97 0.11 15.5 0.19 0.80 6.56
HZFS N 09/02/97 0.96 22.5 0.21 0.43 4.23
KYF N 09/02/97 - 15.6 0.20 1.17 7.19
LOGN N 09/02/97 0.61 15.2 0.24 1.46 7.53
MIVI N 09/02/97 0.28 14.9 0.26 1.18 6.82
NSLB N 09/02/97 0.02 24.3 0.19 0.94 4.78
SFFC N 09/02/97 NA 12.8 0.43 1.55 8.78
SOBI N 09/02/97 0.15 29.4 0.14 0.57 3.72
USAB N 09/02/97 0.67 16.9 0.12 0.80 6.93
Maximum 0.96 32.3 0.43 1.55 8.78
Minimum - 12.8 0.12 0.27 3.03
Average 0.37 20.0 0.22 0.89 5.83
Median 0.28 17.6 0.21 0.81 6.12
18
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.7 - Comparatives Risk Characteristics
- ------------------
NPAs + Loans Net Loan
NPAs/ 90+ Pst Due/ NPAs/ Reserves/ Reserves/ Chargeoffs/
Assets Assets Equity Loans NPAs Avg Loans
(%) (%) (%) (%) (%) (%)
Short Name MRQ MRQ MRQ MRQ MRQ MRQ
Albion Banc Corp. 0.72 0.72 8.26 0.54 53.94 0.47
GFSB Bancorp Inc. 0.18 0.18 1.10 0.69 199.36 0.44
Home Building Bancorp 0.38 0.38 3.00 0.29 47.98 0.01
Harvest Home Financial Corp. 0.11 0.11 0.97 0.26 117.00 -
Horizon Financial Svcs Corp. 0.96 1.22 9.81 0.52 32.85 0.60
Kentucky First Bancorp Inc. - 0.07 - 0.75 NM 0.07
Logansport Financial Corp. 0.61 0.61 3.18 0.38 44.88 0.11
Mississippi View Holding Co. 0.28 0.33 1.47 1.91 447.15 0.02
NS&L Bancorp Inc. 0.02 0.03 0.08 0.13 466.67 -
StateFed Financial Corporation NA NA NA NA NA -
Sobieski Bancorp Inc. 0.15 0.15 1.02 0.33 158.73 NA
USABancshares, Inc. 0.67 0.67 6.27 0.99 63.50 -
Maximum 0.96 1.22 9.81 1.91 466.67 0.60
Minimum - 0.03 - 0.13 32.85 -
Average 0.37 0.41 3.20 0.62 163.21 0.16
Median 0.28 0.33 1.47 0.52 90.25 0.02
19
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit II.7 - Comparative Risk Characteristics
- ------------------
Intangible One Year Earn Assets/
Loans/ Assets/ Cum Gap/ Net Int Bearing
Assets Equity Assets Loans Liabilities
(%) (%) (%) ($000) (%)
Short Name MRQ MRQ Mst RctY MRQ MRQ
Albion Banc Corp. 71.50 - NA 48,247 107.05
GFSB Bancorp Inc. 52.16 - NA 45,026 120.83
Home Building Bancorp 62.83 - NA 28,229 109.24
Harvest Home Financial Corp. 51.58 - (6.90) 45,063 112.43
Horizon Financial Svcs Corp. 61.03 - NA 52,193 109.61
Kentucky First Bancorp Inc. 55.41 - NA 48,920 117.86
Logansport Financial Corp. 71.82 - NA 59,490 122.75
Mississippi View Holding Co. 64.81 - NA 44,147 123.70
NS&L Bancorp Inc. 55.74 - NA 33,238 123.52
StateFed Financial Corporation NA - NA NA 116.34
Sobieski Bancorp Inc. 75.02 - NA 61,135 115.64
USABancshares, Inc. 43.42 1.89 (13.85) 20,765 114.65
Maximum 75.02 1.89 (6.90) 61,135 123.70
Minimum 43.42 - (13.85) 20,765 107.05
Average 60.48 0.16 (10.38) 44,223 116.14
Median 61.03 - (10.38) 45,063 115.99
20
Source: SNL F&C Calculations
EXHIBIT III
FERGUSON & COMPANY Exhibit III
- ------------------
NEWPORT FEDERAL SAVINGS BANK
NEWPORT, AR
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 30,174 30,775 34,226 34,427
% Change in Assets (0.29) 1.99 11.21 0.59
Total Loans 20,234 21,718 24,589 24,782
Deposits 27,104 28,047 29,853 30,351
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 2,310 2,467 2,399 2,478
Tangible Capital 2,310 2,467 2,399 2,478
Core Capital 2,310 2,467 2,399 2,478
Risk-Based Capital 2,377 2,467 2,399 2,478
Equity Capital/Total Assets 7.66 8.02 7.01 7.20
Core Capital/Risk Based Assets 17.77 16.40 13.73 13.83
Core Capital/Adj Tang Assets 7.66 8.02 7.01 7.20
Tangible Cap/Tangible Assets 7.66 8.02 7.01 7.20
Risk-Based Cap/Risk-Wt Assets 18.28 16.40 13.73 13.83
PROFITABILITY:
Net Income(Loss) 244 157 (68) 79
Ret on Avg Assets Bef Ext Item 0.81 0.52 (0.21) 0.92
Return on Average Equity 11.08 6.57 (2.77) 12.96
Net Interest Income/Avg Assets 2.93 2.58 2.39 2.59
Noninterest Income/Avg Assets 0.25 0.23 0.35 0.44
Noninterest Expense/Avg Assets 1.97 2.12 2.96 2.11
Yield/Cost Spread 2.80 2.60 2.57 2.74
LIQUIDITY:
Int Earn Assets/Int Bear Liab 106.92 100.08 100.36 100.64
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.28 1.77 0.79 0.52
Nonaccrual Loans/Gross Loans 1.22 0.44 0.28 0.34
Nonaccrual Lns/Ln Loss Reserve 319.48 109.09 88.46 116.44
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - 0.01 -
Nonmtg 1-4 Constr&Conv Lns/TA 7.51 8.54 8.81 10.99
1
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit III
- ------------------
NEWPORT FEDERAL SAVINGS BANK
NEWPORT, AR
SELECTED PEER GROUP RATIOS & RANKINGS
1994 1995 1996 YTD 3/97
Peer Group Category 2 2 2 2
CAPITAL:
Equity Capital/Total Assets 7.66 8.02 7.01 7.20
Peer Group Percentile 30 28 22 22
Core Cap/Adj Tangible Assets 7.66 8.02 7.01 7.20
Peer Group Percentile 32 31 24 24
Tangible Cap/Tangible Assets 7.66 8.02 7.01 7.20
Peer Group Percentile 32 31 24 24
Risk-Based Cap/Risk-Wt Assets 18.28 16.40 13.73 13.83
Peer Group Percentile 43 33 19 21
ASSET QUALITY:
Risk Assets/Total Assets 7.51 8.99 8.81 10.99
Peer Group Percentile 39 25 29 21
Risk Weighted Assts/Tot Assts 43.09 48.89 51.06 52.06
Peer Group Percentile 68 48 41 40
Nonaccrual Loans/Gross Loans 1.22 0.44 0.28 0.34
Peer Group Percentile 15 31 42 42
Repos Assets/Tot Assets - - - -
Peer Group Percentile 100 13 100 100
90+ Day Del Loans/Gross Loans - 0.15 0.48 0.15
Peer Group Percentile 100 50 32 52
90Day P Due+NonAccr-(1-4)/LLR - 17.05 76.92 63.01
Peer Group Percentile 100 39 17 23
LIQUIDITY:
Avg Reg Liquidity Ratio 13.73 9.32 5.56 5.93
Peer Group Percentile 43 20 5 5
PROFITABILITY:
Ret on Avg Assets Bef Ext Item 0.81 0.52 (0.21) 0.92
Peer Group Percentile 50 36 14 67
Return on Equity Capital 10.56 6.36 (2.83) 12.75
Peer Group Percentile 73 55 13 88
Int Earn Assets/Int Bear Liab 106.92 100.08 100.36 100.64
Peer Group Percentile 52 9 10 14
Yield on Earning Assts 6.95 7.78 7.78 7.80
Peer Group Percentile 38 55 54 59
Cost of Funds 4.15 5.18 5.21 5.05
Peer Group Percentile 20 20 20 22
Yield/Cost Spread 2.80 2.60 2.57 2.74
Peer Group Percentile 21 30 28 36
2
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit III
- ------------------
NEWPORT FEDERAL SAVINGS BANK
NEWPORT, AR
FINANCIAL HIGHLIGHTS
6/30/96 9/30/96 12/31/96 3/31/97
($000's)
BALANCE SHEET:
Total Assets 32,470 33,596 34,226 34,427
% Change in Assets 1.27 3.47 1.88 0.59
Total Loans 22,136 23,341 24,589 24,782
Deposits 29,657 29,956 29,853 30,351
Broker Originated Deposits 47 - - -
CAPITAL:
Equity Capital 2,528 2,372 2,399 2,478
Tangible Capital 2,528 2,372 2,399 2,478
Core Capital 2,528 2,372 2,399 2,478
Risk-Based Capital 2,528 2,372 2,399 2,478
Equity Capital/Total Assets 7.79 7.06 7.01 7.20
Core Capital/Risk Based Assets 15.68 14.18 13.73 13.83
Core Capital/Adj Tang Assets 7.79 7.06 7.01 7.20
Tangible Cap/Tangible Assets 7.79 7.06 7.01 7.20
Risk-Based Cap/Risk-Wt Assets 15.68 14.18 13.73 13.83
PROFITABILITY:
Net Income(Loss) 39 (156) 27 79
Ret on Avg Assets Bef Ext Item 0.48 (1.89) 0.32 0.92
Return on Average Equity 6.22 (25.47) 4.53 12.96
Net Interest Income/Avg Assets 2.42 2.32 2.52 2.59
Noninterest Income/Avg Assets 0.48 0.31 0.24 0.44
Noninterest Expense/Avg Assets 2.40 4.78 2.26 2.11
Yield/Cost Spread 2.63 2.49 2.68 2.74
LIQUIDITY:
Int Earn Assets/Int Bear Liab 100.30 100.54 100.36 100.64
Brokered Deposits/Tot Deposits 0.16 - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.08 0.38 0.79 0.52
Nonaccrual Loans/Gross Loans 0.33 0.23 0.28 0.34
Nonaccrual Lns/Ln Loss Reserve 84.09 81.54 88.46 116.44
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - 0.03 -
Nonmtg 1-4 Constr&Conv Lns/TA 8.54 8.44 8.81 10.99
3
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit III
- ------------------
NEWPORT FEDERAL SAVINGS BANK
NEWPORT, AR
SELECTED PEER GROUP RATIOS & RANKINGS
6/30/96 9/30/96 12/31/96 3/31/97
Peer Group Category 2 2 2 2
CAPITAL:
Equity Capital/Total Assets 7.79 7.06 7.01 7.20
Peer Group Percentile 27 21 22 22
Core Cap/Adj Tangible Assets 7.79 7.06 7.01 7.20
Peer Group Percentile 28 23 24 24
Tangible Cap/Tangible Assets 7.79 7.06 7.01 7.20
Peer Group Percentile 28 23 24 24
Risk-Based Cap/Risk-Wt Assets 15.68 14.18 13.73 13.83
Peer Group Percentile 26 22 19 21
ASSET QUALITY:
Risk Assets/Total Assets 8.97 8.44 8.81 10.99
Peer Group Percentile 30 32 29 21
Risk Weighted Assts/Tot Assts 49.65 49.78 51.06 52.06
Peer Group Percentile 45 45 41 40
Nonaccrual Loans/Gross Loans 0.33 0.23 0.28 0.34
Peer Group Percentile 39 41 42 42
Repos Assets/Tot Assets - - - -
Peer Group Percentile 16 100 100 100
90+ Day Del Loans/Gross Loans 0.13 0.13 0.48 0.15
Peer Group Percentile 49 50 32 52
90Day P Due+NonAccr-(1-4)/LLR 43.18 21.54 76.92 63.01
Peer Group Percentile 29 37 17 23
LIQUIDITY:
Avg Reg Liquidity Ratio 9.48 5.86 5.56 5.93
Peer Group Percentile 18 5 5 5
PROFITABILITY:
Ret on Avg Assets Bef Ext Item 0.48 (1.89) 0.32 0.92
Peer Group Percentile 29 11 21 67
Return on Equity Capital 6.17 (26.31) 4.50 12.75
Peer Group Percentile 46 8 27 88
Int Earn Assets/Int Bear Liab 100.30 100.54 100.36 100.64
Peer Group Percentile 10 9 10 14
Yield on Earning Assts 7.84 7.63 7.86 7.80
Peer Group Percentile 61 45 56 59
Cost of Funds 5.21 5.14 5.18 5.05
Peer Group Percentile 16 23 20 22
Yield/Cost Spread 2.63 2.49 2.68 2.74
Peer Group Percentile 34 23 31 36
4
Source: TAFS, published by Sheshunoff
EXHIBIT IV
FERGUSON & COMPANY EXHIBIT IV
- ------------------
ALBION FS&LA
ALBION, NY
TICKER ALBC FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 55,371 56,264 64,012 65,666
% Change in Assets 10.12 1.61 13.77 2.58
Total Loans 47,042 44,124 48,012 48,177
Deposits 38,494 46,432 48,493 50,279
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 4,787 4,992 4,988 5,120
Tangible Capital 4,787 4,916 4,948 5,071
Core Capital 4,787 4,916 4,948 5,071
Risk-Based Capital 5,011 5,160 5,157 5,268
Equity Capital/Total Assets 8.65 8.87 7.79 7.80
Core Capital/Risk Based Assets 15.63 16.39 15.32 15.48
Core Capital/Adj Tang Assets 8.65 8.75 7.73 7.73
Tangible Cap/Tangible Assets 8.65 8.75 7.73 7.73
Risk-Based Cap/Risk-Wt Assets 16.36 17.20 15.96 16.08
PROFITABILITY:
Net Income(Loss) 357 169 (21) 113
Ret on Avg Assets Bef Ext Item 0.68 0.30 (0.04) 0.70
Return on Average Equity 7.78 3.46 (0.42) 8.94
Net Interest Income/Avg Assets 3.83 3.38 3.44 3.33
Noninterest Income/Avg Assets 0.32 0.38 0.44 0.64
Noninterest Expense/Avg Assets 2.90 3.23 3.68 2.86
Yield/Cost Spread 3.79 3.41 3.56 3.48
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.07 105.09 103.30 102.39
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.64 0.82 1.47 1.08
Nonaccrual Loans/Gross Loans 0.46 0.73 0.52 0.63
Nonaccrual Lns/Ln Loss Reserve 99.11 131.97 120.10 153.30
Repos Assets/Tot Assets -- -- -- 0.18
Net Chrg-Off/Av Adj Lns 0.07 0.02 0.17 --
Nonmtg 1-4 Constr&Conv Lns/TA 4.70 4.51 3.63 3.43
1
Source: TAFS, published by Sheshunoff
FERGUSON & COMPANY EXHIBIT IV
- ------------------
GALLUP FSB
GALLUP, NM
TICKER GUPB FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 44,032 66,826 82,321 87,380
% Change in Assets 7.25 51.77 23.19 6.15
Total Loans 30,224 34,104 42,920 45,292
Deposits 36,950 39,772 53,903 55,465
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 6,676 12,290 11,945 11,917
Tangible Capital 6,676 12,078 11,614 11,614
Core Capital 6,676 12,078 11,614 11,614
Risk-Based Capital 6,894 11,926 11,150 11,084
Equity Capital/Total Assets 15.16 18.39 14.51 13.64
Core Capital/Risk Based Assets 31.08 48.98 36.52 29.31
Core Capital/Adj Tang Assets 15.16 18.19 14.17 13.34
Tangible Cap/Tangible Assets 15.16 18.19 14.17 13.34
Risk-Based Cap/Risk-Wt Assets 32.10 48.36 35.06 27.97
PROFITABILITY:
Net Income(Loss) 588 721 573 161
Ret on Avg Assets Bef Ext Item 1.38 1.30 0.77 0.76
Return on Average Equity 9.14 7.60 4.82 5.40
Net Interest Income/Avg Assets 4.19 3.75 3.15 2.91
Noninterest Income/Avg Assets 0.13 0.13 0.12 0.12
Noninterest Expense/Avg Assets 2.17 1.78 2.03 1.63
Yield/Cost Spread 3.76 3.14 2.59 2.50
LIQUIDITY:
Int Earn Assets/Int Bear Liab 115 120 113 112
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.30 0.09 0.29 0.34
Nonaccrual Loans/Gross Loans -- -- 0.28 0.34
Nonaccrual Lns/Ln Loss Reserve -- -- 36.63 46.02
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- 0.11 (0.07) 0.19
Nonmtg 1-4 Constr&Conv Lns/TA 10.14 7.91 12.11 9.64
2
Source: TAFS, published by Sheshunoff
FERGUSON & COMPANY EXHIBIT IV
- ------------------
HOME BUILDING SVGS BK FSB
WASHINGTON, IN
TICKER HBBI FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 42,107 42,796 44,337 46,469
% Change in Assets (1.66) 1.64 3.60 4.81
Total Loans 29,944 29,177 28,500 28,326
Deposits 36,629 33,283 35,589 37,833
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 3,090 4,639 4,335 4,423
Tangible Capital 3,090 4,611 4,338 4,446
Core Capital 3,090 4,611 4,338 4,446
Risk-Based Capital 3,167 4,688 4,417 4,525
Equity Capital/Total Assets 7.34 10.84 9.78 9.52
Core Capital/Risk Based Assets 13.65 20.99 20.19 20.22
Core Capital/Adj Tang Assets 7.35 10.79 9.78 9.56
Tangible Cap/Tangible Assets 7.35 10.79 9.78 9.56
Risk-Based Cap/Risk-Wt Assets 13.99 21.35 20.56 20.58
PROFITABILITY:
Net Income(Loss) 327 421 (138) 107
Ret on Avg Assets Bef Ext Item 0.77 0.99 (0.32) 0.94
Return on Average Equity 11.11 10.89 (3.15) 9.77
Net Interest Income/Avg Assets 3.21 3.40 3.18 3.22
Noninterest Income/Avg Assets 0.24 0.38 0.34 0.39
Noninterest Expense/Avg Assets 2.10 2.22 2.86 2.09
Yield/Cost Spread 3.32 3.45 3.18 3.29
LIQUIDITY:
Int Earn Assets/Int Bear Liab 103 105 103 104
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.68 0.32 1.60 0.86
Nonaccrual Loans/Gross Loans 0.67 0.20 1.59 0.87
Nonaccrual Lns/Ln Loss Reserve 263.64 77.92 577.22 310.13
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns 0.03 -- 1.44 --
Nonmtg 1-4 Constr&Conv Lns/TA 0.53 0.81 0.69 0.88
3
Source: TAFS, published by Sheshunoff
FERGUSON & COMPANY EXHIBIT IV
- ------------------
HARVEST HOME SVGS BK
CHEVIOT, OH
TICKER HHFC FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 65,431 66,135 81,666 81,208
% Change in Assets 1.81 1.08 23.48 (0.56)
Securities-Book Value 24,575 24,096 34,723 34,022
Securities-Fair Value 23,840 24,096 34,723 34,022
Total Loans & Leases 36,632 38,576 42,834 44,025
Total Deposits 56,134 56,758 57,923 57,672
Loan/Deposit Ratio 65.26 67.97 73.95 76.34
Provision for Loan Losses 12 9 -- 3
CAPITAL:
Equity Capital 8,262 8,275 8,069 8,146
Total Qualifying Capital(Est) 8,360 8,086 8,207 8,364
Equity Capital/Average Assets 12.74 12.58 11.04 10.00
Tot Qual Cap/Rk Bsd Asts(Est) 29.20 27.51 23.87 24.23
Tier 1 Cap/Rsk Bsed Asts(Est) 28.85 27.13 23.55 23.90
T1 Cap/Avg Assets(Lev Est) 12.05 12.09 10.33 10.13
Dividends Declared/Net Income -- 186.97 -- --
PROFITABILITY:
Net Income(Loss) 450 468 194 153
Return on Average Assets 0.69 0.71 0.27 0.75
Return on Average Equity Cap 7.18 5.66 2.47 7.55
Net Interest Margin 2.95 3.02 2.87 2.83
Net Int Income/Avg Assets 2.90 2.96 2.78 2.75
Noninterest Income/Avg Assets 0.07 0.07 0.09 0.06
Noninterest Exp/Avg Assets 1.96 1.92 2.48 1.66
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 0.27 0.33 0.51 0.29
NPA's/Equity + LLR 1.20 1.53 2.65 1.53
LLR/Nonperf & Restrcd Lns 140.00 86.72 51.15 90.48
Foreclosed RE/Total Assets 0.05 -- -- --
90+ Day Del Loans/Total Loans -- -- -- --
Loan Loss Reserves/Total Lns 0.27 0.29 0.26 0.26
Net Charge-Offs/Average Loans 0.02 -- -- --
Dom Risk R/E Lns/Tot Dom Lns 13.61 11.86 10.89 10.59
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 2.95 3.47 3.29 3.56
Int Earn Assets/Int Bear Liab 111.74 111.74 108.83 109.04
Pledged Sec/Total Sec -- -- -- --
Fair Value Sec/Amort Cost Sec 97.01 101.92 99.89 99.54
4
Source: BankSource, published by Sheshunoff
FERGUSON & COMPANY Exhibit IV
- ------------------
HORIZON FSB
OSKALOOSA, IA
TICKER HZFS FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 63,008 71,498 72,514 76,840
% Change in Assets 9.50 13.47 1.42 5.97
Total Loans 43,162 48,886 51,591 52,322
Deposits 50,378 53,947 55,861 56,839
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 6,496 6,562 5,838 5,989
Tangible Capital 6,725 6,535 5,703 6,146
Core Capital 6,725 6,535 5,703 6,146
Risk-Based Capital 6,968 6,781 5,953 6,401
Equity Capital/Total Assets 10.31 9.18 8.05 7.79
Core Capital/Risk Based Assets 19.97 16.39 13.70 14.21
Core Capital/Adj Tang Assets 10.64 9.14 7.88 7.98
Tangible Cap/Tangible Assets 10.64 9.14 7.88 7.98
Risk-Based Cap/Risk-Wt Assets 20.70 17.00 14.30 14.80
PROFITABILITY:
Net Income(Loss) 460 411 75 145
Ret on Avg Assets Bef Ext Item 0.76 0.61 0.10 0.78
Return on Average Equity 8.48 6.30 1.21 9.81
Net Interest Income/Avg Assets 3.43 3.07 2.99 3.11
Noninterest Income/Avg Assets 0.46 0.47 0.59 0.48
Noninterest Expense/Avg Assets 2.68 2.55 2.87 2.29
Yield/Cost Spread 3.35 2.86 2.84 3.03
LIQUIDITY:
Int Earn Assets/Int Bear Liab 107.83 107.16 104.89 104.80
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.81 2.53 2.57 2.17
Nonaccrual Loans/Gross Loans 0.87 2.49 1.27 0.85
Nonaccrual Lns/Ln Loss Reserve 130.58 427.34 225.17 167.80
Repos Assets/Tot Assets - - - 0.46
Net Chrg-Off/Av Adj Lns 0.22 0.03 0.78 0.05
Nonmtg 1-4 Constr&Conv Lns/TA 7.12 6.57 5.98 5.60
Source: TAFS, published by Sheshunoff 5
FERGUSON & COMPANY Exhibit IV
- ------------------
FIRST FSB
CYNTHIANA, KY
TICKER KYF FINANCIAL HIGHLIGHTS
- ----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 62,483 73,460 87,852 88,186
% Change in Assets 2.83 17.57 19.59 0.38
Total Loans 39,537 39,978 47,805 48,998
Deposits 55,158 50,483 54,632 54,667
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 7,006 16,783 15,909 12,462
Tangible Capital 7,006 16,799 15,913 12,485
Core Capital 7,006 16,799 15,913 12,485
Risk-Based Capital 7,158 17,167 16,287 12,863
Equity Capital/Total Assets 11.21 22.85 18.11 14.13
Core Capital/Risk Based Assets 19.54 43.66 33.63 26.02
Core Capital/Adj Tang Assets 11.21 22.86 18.11 14.15
Tangible Cap/Tangible Assets 11.21 22.86 18.11 14.15
Risk-Based Cap/Risk-Wt Assets 19.97 44.61 34.42 26.81
PROFITABILITY:
Net Income(Loss) 807 418 827 272
Ret on Avg Assets Bef Ext Item 1.31 0.62 0.99 1.24
Return on Average Equity 12.14 3.51 5.03 7.67
Net Interest Income/Avg Assets 3.57 3.07 3.45 3.29
Noninterest Income/Avg Assets 0.16 0.17 0.26 0.25
Noninterest Expense/Avg Assets 1.82 2.02 2.27 1.73
Yield/Cost Spread 3.48 2.59 2.82 2.78
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108 125 119 113
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.05 0.98 0.09 0.26
Nonaccrual Loans/Gross Loans - - - -
Nonaccrual Lns/Ln Loss Reserve - - - -
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - (0.00) - -
Nonmtg 1-4 Constr&Conv Lns/TA 20.24 17.85 20.03 20.35
Source: TAFS, published by Sheshunoff 6
FERGUSON & COMPANY Exhibit IV
- ------------------
LOGANSPORT SAVINGS BANK, FSB
LOGANSPORT, IN
TICKER LOGN FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 59,452 70,750 77,574 78,772
% Change in Assets 5.73 19.00 9.65 1.54
Total Loans 43,691 49,058 57,068 57,126
Deposits 51,202 52,502 57,396 59,389
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 6,935 16,672 16,861 15,162
Tangible Capital 7,131 16,671 17,018 15,337
Core Capital 7,131 16,671 17,018 15,337
Risk-Based Capital 7,337 16,894 17,254 15,576
Equity Capital/Total Assets 11.66 23.56 21.74 19.25
Core Capital/Risk Based Assets 21.31 42.94 40.57 36.17
Core Capital/Adj Tang Assets 11.93 23.56 21.89 19.43
Tangible Cap/Tangible Assets 11.93 23.56 21.89 19.43
Risk-Based Cap/Risk-Wt Assets 21.93 43.51 41.13 36.74
PROFITABILITY:
Net Income(Loss) 734 851 869 289
Ret on Avg Assets Bef Ext Item 1.27 1.31 1.17 1.48
Return on Average Equity 11.01 7.21 5.24 7.22
Net Interest Income/Avg Assets 3.27 3.19 3.53 3.60
Noninterest Income/Avg Assets 0.30 0.48 0.33 0.24
Noninterest Expense/Avg Assets 1.66 1.58 2.03 1.48
Yield/Cost Spread 3.09 2.69 2.77 2.92
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.43 125.00 124.78 118.92
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.64 0.63 0.71 0.62
Nonaccrual Loans/Gross Loans - - - -
Nonaccrual Lns/Ln Loss Reserve - - - -
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - 0.01 (0.00) -
Nonmtg 1-4 Constr&Conv Lns/TA 3.71 5.36 7.22 6.34
Source: TAFS, published by Sheshunoff 7
FERGUSON & COMPANY Exhibit IV
- ------------------
COMMUNITY FS&LA
LITTLE FALLS, MN
TICKER MIVI FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 62,111 69,212 70,306 69,756
% Change in Assets (4.36) 11.43 1.58 (0.78)
Total Loans 44,310 43,438 44,095 44,270
Deposits 55,312 54,689 56,426 55,957
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 6,137 10,912 11,504 11,703
Tangible Capital 6,043 10,692 10,639 10,848
Core Capital 6,043 10,692 10,639 10,848
Risk-Based Capital 6,419 11,092 11,068 11,280
Equity Capital/Total Assets 9.88 15.77 16.36 16.78
Core Capital/Risk Based Assets 18.90 32.13 31.25 31.80
Core Capital/Adj Tang Assets 9.74 15.50 15.32 15.74
Tangible Cap/Tangible Assets 9.74 15.50 15.32 15.74
Risk-Based Cap/Risk-Wt Assets 20.08 33.33 32.51 33.06
PROFITABILITY:
Net Income(Loss) 414 837 520 197
Ret on Avg Assets Bef Ext Item 0.65 1.27 0.74 1.13
Return on Average Equity 7.03 9.82 4.81 6.79
Net Interest Income/Avg Assets 3.40 3.80 3.47 3.64
Noninterest Income/Avg Assets 0.40 0.55 0.43 0.31
Noninterest Expense/Avg Assets 2.40 2.26 2.70 1.96
Yield/Cost Spread 3.23 3.47 2.94 3.05
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.61 115.61 118.25 117.67
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.09 0.22 0.59 0.47
Nonaccrual Loans/Gross Loans 0.05 - 0.38 0.18
Nonaccrual Lns/Ln Loss Reserve 2.06 - 19.73 9.36
Repos Assets/Tot Assets - - - 0.05
Net Chrg-Off/Av Adj Lns (0.03) 0.33 0.02 0.11
Nonmtg 1-4 Constr&Conv Lns/TA 5.96 2.47 2.85 2.80
Source: TAFS, published by Sheshunoff 8
FERGUSON & COMPANY Exhibit IV
- ------------------
NEOSHO S&LA, FA
NEOSHO, MO
TICKER NSLB FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 49,738 53,156 56,645 56,507
% Change in Assets (4.49) 6.87 6.56 (0.24)
Total Loans 25,095 28,013 31,762 32,145
Deposits 43,274 41,964 44,062 43,630
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 6,018 9,947 8,339 8,475
Tangible Capital 6,018 9,947 8,339 8,475
Core Capital 6,018 9,947 8,339 8,475
Risk-Based Capital 6,036 9,945 8,381 8,518
Equity Capital/Total Assets 12.10 18.71 14.72 15.00
Core Capital/Risk Based Assets 34.70 51.58 38.31 35.21
Core Capital/Adj Tang Assets 12.10 18.71 14.72 15.00
Tangible Cap/Tangible Assets 12.10 18.71 14.72 15.00
Risk-Based Cap/Risk-Wt Assets 34.81 51.57 38.50 35.39
PROFITABILITY:
Net Income(Loss) 471 471 186 93
Ret on Avg Assets Bef Ext Item 0.93 0.92 0.33 0.66
Return on Average Equity 8.16 5.90 1.97 4.42
Net Interest Income/Avg Assets 3.04 3.06 2.80 2.90
Noninterest Income/Avg Assets 0.59 0.54 0.43 0.36
Noninterest Expense/Avg Assets 2.17 2.32 2.79 2.24
Yield/Cost Spread 2.94 2.70 2.32 2.49
LIQUIDITY:
Int Earn Assets/Int Bear Liab 110 120 114 115
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 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 0.42 0.33 0.20 1.03
Source: TAFS, published by Sheshunoff 9
FERGUSON & COMPANY Exhibit IV
- ------------------
STATE FS&LA OF DES MOINES
DES MOINES, IA
TICKER SFFC FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 64,977 71,246 79,668 81,709
% Change in Assets 0.12 9.65 11.82 2.56
Total Loans 54,307 60,444 67,706 67,318
Deposits 46,043 46,201 49,422 51,482
Broker Originated Deposits - 396 1,584 1,683
CAPITAL:
Equity Capital 10,101 10,067 9,883 10,144
Tangible Capital 9,641 9,537 9,489 9,079
Core Capital 9,641 9,537 9,489 9,079
Risk-Based Capital 9,845 9,765 9,741 9,333
Equity Capital/Total Assets 15.55 14.13 12.41 12.41
Core Capital/Risk Based Assets 27.98 24.47 20.28 18.92
Core Capital/Adj Tang Assets 15.14 13.63 12.08 11.27
Tangible Cap/Tangible Assets 15.14 13.63 12.08 11.27
Risk-Based Cap/Risk-Wt Assets 28.57 25.05 20.82 19.45
PROFITABILITY:
Net Income(Loss) 803 729 709 234
Ret on Avg Assets Bef Ext Item 1.24 1.07 0.95 1.16
Return on Average Equity 9.56 7.23 6.85 9.35
Net Interest Income/Avg Assets 3.83 3.46 3.32 3.14
Noninterest Income/Avg Assets 0.28 0.35 0.44 0.39
Noninterest Expense/Avg Assets 2.05 2.02 2.27 1.62
Yield/Cost Spread 3.51 2.90 2.91 2.85
LIQUIDITY:
Int Earn Assets/Int Bear Liab 117.65 114.08 109.89 109.26
Brokered Deposits/Tot Deposits - 0.86 3.21 3.27
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.22 0.64 2.27 2.39
Nonaccrual Loans/Gross Loans 0.21 - 0.95 0.89
Nonaccrual Lns/Ln Loss Reserve 57.84 - 260.71 233.86
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns 0.07 - - 0.02
Nonmtg 1-4 Constr&Conv Lns/TA 28.11 27.78 27.96 26.17
Source: TAFS, published by Sheshunoff 10
FERGUSON & COMPANY Exhibit IV
- ------------------
SOBIESKI FS&LA
SOUTH BEND, IN
TICKER SOBI FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 70,694 72,595 75,773 76,285
% Change in Assets (4.11) 2.69 4.38 0.68
Total Loans 49,594 45,893 52,234 55,213
Deposits 64,309 61,399 59,714 59,045
Broker Originated Deposits - - - -
CAPITAL:
Equity Capital 5,917 10,002 9,321 8,803
Tangible Capital 5,917 9,964 9,331 8,814
Core Capital 5,917 9,964 9,331 8,814
Risk-Based Capital 6,117 10,164 9,531 9,014
Equity Capital/Total Assets 8.37 13.78 12.30 11.54
Core Capital/Risk Based Assets 19.89 35.15 29.37 27.61
Core Capital/Adj Tang Assets 8.37 13.73 12.31 11.55
Tangible Cap/Tangible Assets 8.37 13.73 12.31 11.55
Risk-Based Cap/Risk-Wt Assets 20.56 35.86 30.00 28.24
PROFITABILITY:
Net Income(Loss) 686 363 74 106
Ret on Avg Assets Bef Ext Item 0.95 0.57 0.10 0.56
Return on Average Equity 12.25 5.09 0.76 4.68
Net Interest Income/Avg Assets 3.53 3.02 2.92 3.04
Noninterest Income/Avg Assets 0.22 0.23 0.37 0.27
Noninterest Expense/Avg Assets 2.20 2.40 3.08 2.41
Yield/Cost Spread 3.45 2.84 2.69 2.88
LIQUIDITY:
Int Earn Assets/Int Bear Liab 105.04 109.97 107.58 108.24
Brokered Deposits/Tot Deposits - - - -
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.30 0.17 0.38 0.37
Nonaccrual Loans/Gross Loans - - - -
Nonaccrual Lns/Ln Loss Reserve - - - -
Repos Assets/Tot Assets - - - -
Net Chrg-Off/Av Adj Lns - - - -
Nonmtg 1-4 Constr&Conv Lns/TA 0.50 3.57 4.53 4.85
Source: TAFS, published by Sheshunoff 11
FERGUSON & COMPANY Exhibit IV
- ------------------
PEOPLES-THRIFT SVGS BK
NORRISTOWN, PA
TICKER USAB FINANCIAL HIGHLIGHTS
- -----------
1994 1995 1996 YTD 3/97
($000's)
BALANCE SHEET:
Total Assets 19,141 25,261 38,033 38,988
% Change in Assets (6.35) 31.97 50.56 2.51
Securities-Book Value 15,100 10,058 16,448 19,350
Securities-Fair Value 13,992 10,139 16,452 19,273
Total Loans & Leases 3,248 7,057 16,711 18,150
Total Deposits 17,051 20,943 27,974 30,960
Loan/Deposit Ratio 19.05 33.70 59.74 58.62
Provision for Loan Losses (16) 1 125 25
CAPITAL:
Equity Capital 1,507 4,076 4,785 4,675
Total Qualifying Capital(Est) 1,516 4,136 4,776 4,769
Equity Capital/Average Assets 7.62 18.36 16.16 12.15
Tot Qual Cap/Rk Bsd Asts(Est) 29.48 49.61 26.12 24.26
Tier 1 Cap/Rsk Bsed Asts(Est) 29.30 48.89 25.11 23.21
T1 Cap/Avg Assets(Lev Est) 7.91 16.01 13.33 11.90
Dividends Declared/Net Income (0.00) (0.00) -- --
PROFITABILITY:
Net Income(Loss) (44) (108) 297 86
Return on Average Assets (0.22) (0.49) 1.00 0.89
Return on Average Equity Cap (2.92) (3.87) 6.59 7.27
Net Interest Margin 2.33 2.00 5.98 5.06
Net Int Income/Avg Assets 2.30 1.98 5.83 4.94
Noninterest Income/Avg Assets 0.06 0.03 0.17 0.15
Noninterest Exp/Avg Assets 2.63 2.50 4.65 3.68
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE -- -- 2.18 1.34
NPA's/Equity + LLR -- -- 7.35 5.00
LLR/Nonperf & Restrcd Lns -- -- 49.86 84.84
Foreclosed RE/Total Assets -- -- -- --
90+ Day Del Loans/Total Loans -- -- 0.28 --
Loan Loss Reserves/Total Lns 0.28 0.85 1.09 1.14
Net Charge-Offs/Average Loans -- -- 0.02 --
Dom Risk R/E Lns/Tot Dom Lns -- 3.54 23.74 27.17
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 5.06 8.48 8.98 9.17
Int Earn Assets/Int Bear Liab 107.04 118.07 113.59 113.34
Pledged Sec/Total Sec -- -- -- --
Fair Value Sec/Amort Cost Sec 92.66 100.81 100.22 99.50
12
Source: BankSource, published by Sheshunoff
EXHIBIT V
FERGUSON & COMPANY
- ------------------
Exhibit V - Selected Publicly Held Thrifts
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
AADV Advantage Bancorp Inc. Kenosha WI MW SAIF NASDAQ 03/23/92 44.750
ABBK Abington Bancorp Inc. Abington MA NE BIF NASDAQ 06/10/86 30.500
ABCL Alliance Bancorp Inc. Hinsdale IL MW SAIF NASDAQ 07/07/92 31.125
ABCW Anchor BanCorp Wisconsin Madison WI MW SAIF NASDAQ 07/16/92 26.750
AFCB Affiliated Community Bancorp Waltham MA NE SAIF NASDAQ 10/19/95 26.250
AHM Ahmanson & Company (H.F.) Irwindale CA WE SAIF NYSE 10/25/72 51.938
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 23.250
ALBK ALBANK Financial Corp. Albany NY MA SAIF NASDAQ 04/01/92 39.000
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 14.500
ANDB Andover Bancorp Inc. Andover MA NE BIF NASDAQ 05/08/86 30.875
ASBI Ameriana Bancorp New Castle IN MW SAIF NASDAQ 03/02/87 20.875
ASBP ASB Financial Corp. Portsmouth OH MW SAIF NASDAQ 05/11/95 13.125
ASFC Astoria Financial Corp. Lake Success NY MA SAIF NASDAQ 11/18/93 48.000
BANC BankAtlantic Bancorp Inc. Fort Lauderdale FL SE SAIF NASDAQ 11/29/83 12.750
BDJI First Federal Bancorporation Bemidji MN MW SAIF NASDAQ 04/04/95 21.000
BFD BostonFed Bancorp Inc. Burlington MA NE SAIF AMSE 10/24/95 19.000
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 24.125
BKC American Bank of Connecticut Waterbury CT NE BIF AMSE 12/01/81 37.750
BKCT Bancorp Connecticut Inc. Southington CT NE BIF NASDAQ 07/03/86 31.500
BKUNA BankUnited Financial Corp. Coral Gables FL SE SAIF NASDAQ 12/11/85 12.125
BVCC Bay View Capital Corp. San Mateo CA WE SAIF NASDAQ 05/09/86 25.938
CAFI Camco Financial Corp. Cambridge OH MW SAIF NASDAQ NA 18.250
CAPS Capital Savings Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 12/29/93 15.625
CASB Cascade Financial Corp. Everett WA WE SAIF NASDAQ 09/16/92 13.250
CASH First Midwest Financial Inc. Storm Lake IA MW SAIF NASDAQ 09/20/93 18.000
CATB Catskill Financial Corp. Catskill NY MA BIF NASDAQ 04/18/96 16.375
CBCI Calumet Bancorp Inc. Dolton IL MW SAIF NASDAQ 02/20/92 43.000
CBSA Coastal Bancorp Inc. Houston TX SW SAIF NASDAQ NA 29.500
CBSB Charter Financial Inc. Sparta IL MW SAIF NASDAQ 12/29/95 20.375
CEBK Central Co-operative Bank Somerville MA NE BIF NASDAQ 10/24/86 19.750
CFB Commercial Federal Corp. Omaha NE MW SAIF NYSE 12/31/84 44.000
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 21.750
CFSB CFSB Bancorp Inc. Lansing MI MW SAIF NASDAQ 06/22/90 26.500
CFTP Community Federal Bancorp Tupelo MS SE SAIF NASDAQ 03/26/96 17.375
CFX CFX Corp. Keene NH NE BIF AMSE 02/12/87 20.563
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 15.500
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 19.000
CLAS Classic Bancshares Inc. Ashland KY MW SAIF NASDAQ 12/29/95 14.125
CMRN Cameron Financial Corp Cameron MO MW SAIF NASDAQ 04/03/95 17.375
CMSB Commonwealth Bancorp Inc. Norristown PA MA SAIF NASDAQ 06/17/96 16.875
CNIT CENIT Bancorp Inc. Norfolk VA SE SAIF NASDAQ 08/06/92 50.500
COFI Charter One Financial Cleveland OH MW SAIF NASDAQ 01/22/88 55.313
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 14.625
CSA Coast Savings Financial Los Angeles CA WE SAIF NYSE 12/23/85 46.750
CTZN CitFed Bancorp Inc. Dayton OH MW SAIF NASDAQ 01/23/92 46.750
CVAL Chester Valley Bancorp Inc. Downingtown PA MA SAIF NASDAQ 03/27/87 21.000
DIBK Dime Financial Corp. Wallingford CT NE BIF NASDAQ 07/09/86 29.750
DIME Dime Community Bancorp Inc. Brooklyn NY MA BIF NASDAQ 06/26/96 19.250
DME Dime Bancorp Inc. New York NY MA BIF NYSE 08/19/86 19.500
DNFC D & N Financial Corp. Hancock MI MW SAIF NASDAQ 02/13/85 19.250
1
Source: SNL & F&C calculations
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 ($)
DSL Downey Financial Corp. Newport Beach CA WE SAIF NYSE 01/01/71 22.250
EBSI Eagle Bancshares Tucker GA SE SAIF NASDAQ 04/01/86 16.500
EFBI Enterprise Federal Bancorp West Chester OH MW SAIF NASDAQ 10/17/94 20.000
EGFC Eagle Financial Corp. Bristol CT NE SAIF NASDAQ 02/03/87 36.250
EIRE Emerald Isle Bancorp Inc. Quincy MA NE BIF NASDAQ 09/08/86 21.750
EMLD Emerald Financial Corp. Strongsville OH MW SAIF NASDAQ NA 14.500
EQSB Equitable Federal Savings Bank Wheaton MD MA SAIF NASDAQ 09/10/93 37.938
ESBK Elmira Savings Bank (The) Elmira NY MA BIF NASDAQ 03/01/85 23.750
FBBC First Bell Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/29/95 15.875
FBCI Fidelity Bancorp Inc. Chicago IL MW SAIF NASDAQ 12/15/93 21.250
FBHC Fort Bend Holding Corp. Rosenberg TX SW SAIF NASDAQ 06/30/93 34.250
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 24.250
FCBF FCB Financial Corp. Neenah WI MW SAIF NASDAQ 09/24/93 27.500
FCME First Coastal Corp. Westbrook ME NE BIF NASDAQ NA 10.875
FED FirstFed Financial Corp. Santa Monica CA WE SAIF NYSE 12/16/83 34.125
FESX First Essex Bancorp Inc. Andover MA NE BIF NASDAQ 08/04/87 17.000
FFBA First Colorado Bancorp Inc. Lakewood CO SW SAIF NASDAQ 01/02/96 18.875
FFBH First Federal Bancshares of AR Harrison AR SE SAIF NASDAQ 05/03/96 21.000
FFBI First Financial Bancorp Inc. Belvidere IL MW SAIF NASDAQ 10/04/93 18.875
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 18.500
FFCH First Financial Holdings Inc. Charleston SC SE SAIF NASDAQ 11/10/83 33.000
FFDB FirstFed Bancorp Inc. Bessemer AL SE SAIF NASDAQ 11/19/91 16.531
FFES First Federal of East Hartford East Hartford CT NE SAIF NASDAQ 06/23/87 33.000
FFFC FFVA Financial Corp. Lynchburg VA SE SAIF NASDAQ 10/12/94 29.313
FFFD North Central Bancshares Inc. Fort Dodge IA MW SAIF NASDAQ 03/21/96 16.813
FFHH FSF Financial Corp. Hutchinson MN MW SAIF NASDAQ 10/07/94 17.750
FFHS First Franklin Corporation Cincinnati OH MW SAIF NASDAQ 01/26/88 19.750
FFIC Flushing Financial Corp. Flushing NY MA BIF NASDAQ 11/21/95 20.250
FFKY First Federal Financial Corp. Elizabethtown KY MW SAIF NASDAQ 07/15/87 22.500
FFLC FFLC Bancorp Inc. Leesburg FL SE SAIF NASDAQ 01/04/94 32.000
FFOH Fidelity Financial of Ohio Cincinnati OH MW SAIF NASDAQ 03/04/96 15.438
FFSL First Independence Corp. Independence KS MW SAIF NASDAQ 10/08/93 13.000
FFWC FFW Corp. Wabash IN MW SAIF NASDAQ 04/05/93 28.000
FFWD Wood Bancorp Inc. Bowling Green OH MW SAIF NASDAQ 08/31/93 16.625
FFYF FFY Financial Corp. Youngstown OH MW SAIF NASDAQ 06/28/93 27.625
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 7.750
FIBC Financial Bancorp Inc. Long Island City NY MA SAIF NASDAQ 08/17/94 20.000
FKFS First Keystone Financial Media PA MA SAIF NASDAQ 01/26/95 28.500
FLFC First Liberty Financial Corp. Macon GA SE SAIF NASDAQ 12/06/83 22.500
FMCO FMS Financial Corporation Burlington NJ MA SAIF NASDAQ 12/14/88 25.250
FMSB First Mutual Savings Bank Bellevue WA WE BIF NASDAQ 12/17/85 21.000
FNGB First Northern Capital Corp. Green Bay WI MW SAIF NASDAQ 12/29/83 13.750
FOBC Fed One Bancorp Wheeling WV SE SAIF NASDAQ 01/19/95 20.000
FRC First Republic Bancorp San Francisco CA WE BIF NYSE NA 23.375
FSBI Fidelity Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/24/88 21.250
FSPG First Home Bancorp Inc. Pennsville NJ MA SAIF NASDAQ 04/20/87 20.125
FSTC First Citizens Corp. Newnan GA SE SAIF NASDAQ 03/01/86 32.000
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 22.250
FTFC First Federal Capital Corp. La Crosse WI MW SAIF NASDAQ 11/02/89 24.500
2
Source: SNL & F&C calculations
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 ($)
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 12.000
FWWB First SB of Washington Bancorp Walla Walla WA WE SAIF NASDAQ 11/01/95 24.625
GAF GA Financial Inc. Pittsburgh PA MA SAIF AMSE 03/26/96 18.625
GBCI Glacier Bancorp Inc. Kalispell MT WE SAIF NASDAQ 03/30/84 18.875
GDW Golden West Financial Oakland CA WE SAIF NYSE 05/29/59 84.063
GFCO Glenway Financial Corp. Cincinnati OH MW SAIF NASDAQ 11/30/90 25.000
GFSB GFS Bancorp Inc. Grinnell IA MW SAIF NASDAQ 01/06/94 14.250
GPT GreenPoint Financial Corp. New York NY MA BIF NYSE 01/28/94 62.563
GSB Golden State Bancorp Inc. Glendale CA WE SAIF NYSE 10/01/83 29.125
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 34.250
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 18.750
HALL Hallmark Capital Corp. West Allis WI MW SAIF NASDAQ 01/03/94 22.250
HARB Harbor Florida Bancorp (MHC) Fort Pierce FL SE SAIF NASDAQ 01/06/94 54.500
HARL Harleysville Savings Bank Harleysville PA MA SAIF NASDAQ 08/04/87 26.000
HAVN Haven Bancorp Inc. Woodhaven NY MA SAIF NASDAQ 09/23/93 38.875
HBFW Home Bancorp Fort Wayne IN MW SAIF NASDAQ 03/30/95 22.000
HBNK Highland Federal Bank FSB Burbank CA WE SAIF NASDAQ NA 30.250
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 19.000
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY MW SAIF NASDAQ 10/04/95 15.250
HFFC HF Financial Corp. Sioux Falls SD MW SAIF NASDAQ 04/08/92 22.000
HFGI Harrington Financial Group Richmond IN MW SAIF NASDAQ NA 12.000
HFSA Hardin Bancorp Inc. Hardin MO MW SAIF NASDAQ 09/29/95 16.875
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 11.750
HIFS Hingham Instit. for Savings Hingham MA NE BIF NASDAQ 12/20/88 24.250
HMCI HomeCorp Inc. Rockford IL MW SAIF NASDAQ 06/22/90 16.250
HMNF HMN Financial Inc. Spring Valley MN MW SAIF NASDAQ 06/30/94 25.250
HOMF Home Federal Bancorp Seymour IN MW SAIF NASDAQ 01/23/88 30.000
HPBC Home Port Bancorp Inc. Nantucket MA NE BIF NASDAQ 08/25/88 22.250
HRBF Harbor Federal Bancorp Inc. Baltimore MD MA SAIF NASDAQ 08/12/94 19.000
HRZB Horizon Financial Corp. Bellingham WA WE BIF NASDAQ 08/01/86 15.250
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 18.875
IFSB Independence Federal Svgs Bank Washington DC MA SAIF NASDAQ 06/06/85 13.000
INBI Industrial Bancorp Bellevue OH MW SAIF NASDAQ 08/01/95 15.250
IPSW Ipswich Savings Bank Ipswich MA NE BIF NASDAQ 05/26/93 13.000
ISBF ISB Financial Corporation New Iberia LA SW SAIF NASDAQ 04/07/95 25.000
ITLA ITLA Capital Corp. La Jolla CA WE BIF NASDAQ 10/24/95 17.750
IWBK InterWest Bancorp Inc. Oak Harbor WA WE SAIF NASDAQ NA 38.750
JSB JSB Financial Inc. Lynbrook NY MA BIF NYSE 06/27/90 46.063
JSBA Jefferson Savings Bancorp Ballwin MO MW SAIF NASDAQ 04/08/93 33.250
JXVL Jacksonville Bancorp Inc. Jacksonville TX SW SAIF NASDAQ 04/01/96 16.750
KFBI Klamath First Bancorp Klamath Falls OR WE SAIF NASDAQ 10/05/95 19.500
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 18.500
KSBK KSB Bancorp Inc. Kingfield ME NE BIF NASDAQ 06/24/93 14.250
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 12.500
LARK Landmark Bancshares Inc. Dodge City KS MW SAIF NASDAQ 03/28/94 24.313
LARL Laurel Capital Group Inc. Allison Park PA MA SAIF NASDAQ 02/20/87 22.500
LIFB Life Bancorp Inc. Norfolk VA SE SAIF NASDAQ 10/11/94 24.625
LISB Long Island Bancorp Inc. Melville NY MA SAIF NASDAQ 04/18/94 40.125
3
Source: SNL & F&C calculations
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 ($)
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 14.625
LONF London Financial Corporation London OH MW SAIF NASDAQ 04/01/96 15.000
LSBI LSB Financial Corp. Lafayette IN MW BIF NASDAQ 02/03/95 21.500
LSBX Lawrence Savings Bank North Andover MA NE BIF NASDAQ 05/02/86 11.375
LVSB Lakeview Financial West Paterson NJ MA SAIF NASDAQ 12/22/93 33.000
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 16.000
MAFB MAF Bancorp Inc. Clarendon Hills IL MW SAIF NASDAQ 01/12/90 31.000
MARN Marion Capital Holdings Marion IN MW SAIF NASDAQ 03/18/93 23.500
MASB MASSBANK Corp. Reading MA NE BIF NASDAQ 05/28/86 52.000
MBB MSB Bancorp Inc. Goshen NY MA BIF AMSE 09/03/92 23.250
MBB MSB Bancorp, Inc. Goshen NY MA BIF AMSE NA 23.250
MBLF MBLA Financial Corp. Macon MO MW SAIF NASDAQ 06/24/93 23.750
MCBN Mid-Coast Bancorp Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 25.500
MDBK Medford Savings Bank Medford MA NE BIF NASDAQ 03/18/86 31.625
MECH Mechanics Savings Bank Hartford CT NE BIF NASDAQ 06/26/96 24.000
MERI Meritrust Federal SB Thibodaux LA SW SAIF NASDAQ NA 41.031
METF Metropolitan Financial Corp. Mayfield Heights OH MW SAIF NASDAQ NA 18.125
MFBC MFB Corp. Mishawaka IN MW SAIF NASDAQ 03/25/94 23.125
MFFC Milton Federal Financial Corp. West Milton OH MW SAIF NASDAQ 10/07/94 13.750
MFLR Mayflower Co-operative Bank Middleboro MA NE BIF NASDAQ 12/23/87 19.500
MFSL Maryland Federal Bancorp Hyattsville MD MA SAIF NASDAQ 06/02/87 43.000
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 15.500
MLBC ML Bancorp Inc. Villanova PA MA SAIF NASDAQ 08/11/94 20.750
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 13.250
MWBI Midwest Bancshares Inc. Burlington IA MW SAIF NASDAQ 11/12/92 36.000
MWBX MetroWest Bank Framingham MA NE BIF NASDAQ 10/10/86 6.500
MWFD Midwest Federal Financial Baraboo WI MW SAIF NASDAQ 07/08/92 20.750
NASB North American Savings Bank Grandview MO MW SAIF NASDAQ 09/27/85 49.000
NBN Northeast Bancorp Portland ME NE BIF AMSE 08/19/87 14.625
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 17.500
NHTB New Hampshire Thrift Bncshrs New London NH NE SAIF NASDAQ 05/22/86 18.250
NMSB NewMil Bancorp Inc. New Milford CT NE BIF NASDAQ 02/01/86 12.875
NSSB Norwich Financial Corp. Norwich CT NE BIF NASDAQ 11/14/86 29.000
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 16.750
NYB New York Bancorp Inc. Douglaston NY MA SAIF NYSE 01/28/88 30.750
OFCP Ottawa Financial Corp. Holland MI MW SAIF NASDAQ 08/19/94 25.375
OHSL OHSL Financial Corp. Cincinnati OH MW SAIF NASDAQ 02/10/93 23.250
PALM Palfed Inc. Aiken SC SE SAIF NASDAQ 12/15/85 16.125
PAMM PacificAmerica Money Center Woodland Hills CA WE BIF NASDAQ 06/25/96 23.000
PBCI Pamrapo Bancorp Inc. Bayonne NJ MA SAIF NASDAQ 11/14/89 21.000
PBHC Oswego City Savings Bk (MHC) Oswego NY MA BIF NASDAQ 11/16/95 18.000
PBKB People's Bancshares Inc. New Bedford MA NE BIF NASDAQ 10/30/86 17.250
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 21.375
PCCI Pacific Crest Capital Agoura Hills CA WE BIF NASDAQ NA 15.250
PEEK Peekskill Financial Corp. Peekskill NY MA SAIF NASDAQ 12/29/95 16.375
PERM Permanent Bancorp Inc. Evansville IN MW SAIF NASDAQ 04/04/94 22.750
PFDC Peoples Bancorp Auburn IN MW SAIF NASDAQ 07/07/87 25.625
PFNC Progress Financial Corp. Blue Bell PA MA SAIF NASDAQ 07/18/83 15.000
PFSB PennFed Financial Services Inc West Orange NJ MA SAIF NASDAQ 07/15/94 29.500
PFSL Pocahontas FS&LA (MHC) Pocahontas AR SE SAIF NASDAQ 04/05/94 26.000
4
Source: SNL & F&C calculations
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 ($)
PHBK Peoples Heritage Finl Group Portland ME NE BIF NASDAQ 12/04/86 37.750
PHFC Pittsburgh Home Financial Corp Pittsburgh PA MA SAIF NASDAQ 04/01/96 18.750
PKPS Poughkeepsie Financial Corp. Poughkeepsie NY MA SAIF NASDAQ 11/19/85 7.281
PRBC Prestige Bancorp Inc. Pleasant Hills PA MA SAIF NASDAQ 06/27/96 17.125
PSBK Progressive Bank Inc. Fishkill NY MA BIF NASDAQ 08/01/84 33.000
PTRS Potters Financial Corp. East Liverpool OH MW SAIF NASDAQ 12/31/93 24.000
PULS Pulse Bancorp South River NJ MA SAIF NASDAQ 09/18/86 21.250
PVFC PVF Capital Corp. Bedford Heights OH MW SAIF NASDAQ 12/30/92 20.250
PVSA Parkvale Financial Corporation Monroeville PA MA SAIF NASDAQ 07/16/87 29.625
PWBC PennFirst Bancorp Inc. Ellwood City PA MA SAIF NASDAQ 06/13/90 15.750
QCBC Quaker City Bancorp Inc. Whittier CA WE SAIF NASDAQ 12/30/93 21.250
QCFB QCF Bancorp Inc. Virginia MN MW SAIF NASDAQ 04/03/95 26.000
RARB Raritan Bancorp Inc. Raritan NJ MA BIF NASDAQ 03/01/87 24.000
REDF RedFed Bancorp Inc. Redlands CA WE SAIF NASDAQ 04/08/94 17.500
RELY Reliance Bancorp Inc. Garden City NY MA SAIF NASDAQ 03/31/94 31.500
ROSE TR Financial Corp. Garden City NY MA BIF NASDAQ 06/29/93 27.000
RVSB Riverview Savings Bank (MHC) Camas WA WE SAIF NASDAQ 10/26/93 27.000
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95 19.250
SFFC StateFed Financial Corporation Des Moines IA MW SAIF NASDAQ 01/05/94 22.000
SFIN Statewide Financial Corp. Jersey City NJ MA SAIF NASDAQ 10/02/95 18.750
SFSB SuburbFed Financial Corp. Flossmoor IL MW SAIF NASDAQ 03/04/92 27.500
SFSL Security First Corp. Mayfield Heights OH MW SAIF NASDAQ 01/22/88 19.250
SISB SIS Bancorp Inc. Springfield MA NE BIF NASDAQ 02/08/95 29.750
SKAN Skaneateles Bancorp Inc. Skaneateles NY MA BIF NASDAQ 06/02/86 23.000
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO MW SAIF NASDAQ 04/13/94 17.000
SOPN First Savings Bancorp Inc. Southern Pines NC SE SAIF NASDAQ 01/06/94 20.625
SOSA Somerset Savings Bank Somerville MA NE BIF NASDAQ 07/09/86 3.969
SPBC St. Paul Bancorp Inc. Chicago IL MW SAIF NASDAQ 05/18/87 23.500
SSM Stone Street Bancorp Inc. Mocksville NC SE SAIF AMSE 04/01/96 21.250
STFR St. Francis Capital Corp. Milwaukee WI MW SAIF NASDAQ 06/21/93 34.500
STSA Sterling Financial Corp. Spokane WA WE SAIF NASDAQ NA 18.625
SWBI Southwest Bancshares Hometown IL MW SAIF NASDAQ 06/24/92 20.250
SWCB Sandwich Co-operative Bank Sandwich MA NE BIF NASDAQ 07/25/86 32.375
TBK Tolland Bank Tolland CT NE BIF AMSE 12/19/86 17.625
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 16.250
THRD TF Financial Corporation Newtown PA MA SAIF NASDAQ 07/13/94 19.625
TPNZ Tappan Zee Financial Inc. Tarrytown NY MA SAIF NASDAQ 10/05/95 17.250
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 22.750
TSH Teche Holding Co. Franklin LA SW SAIF AMSE 04/19/95 18.500
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 20.000
UBMT United Financial Corp. Great Falls MT WE SAIF NASDAQ 09/23/86 23.625
VABF Virginia Beach Fed. Financial Virginia Beach VA SE SAIF NASDAQ 11/01/80 14.125
WAMU Washington Mutual Inc. Seattle WA WE BIF NASDAQ 03/11/83 63.000
WBST Webster Financial Corp. Waterbury CT NE SAIF NASDAQ 12/12/86 55.250
WCBI Westco Bancorp Westchester IL MW SAIF NASDAQ 06/26/92 26.500
WEFC Wells Financial Corp. Wells MN MW SAIF NASDAQ 04/11/95 16.500
WFI Winton Financial Corp. Cincinnati OH MW SAIF AMSE 08/04/88 16.250
WFSL Washington Federal Inc. Seattle WA WE SAIF NASDAQ 11/17/82 27.313
WRNB Warren Bancorp Inc. Peabody MA NE BIF NASDAQ 07/09/86 17.875
WSB Washington Savings Bank, FSB Waldorf MD MA SAIF AMSE NA 6.875
5
Source: SNL & F&C calculations
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 ($)
WSFS WSFS Financial Corporation Wilmington DE MA BIF NASDAQ 11/26/86 15.125
WSTR WesterFed Financial Corp. Missoula MT WE SAIF NASDAQ 01/10/94 21.375
WVFC WVS Financial Corp. Pittsburgh PA MA SAIF NASDAQ 11/29/93 27.000
WWFC Westwood Financial Corporation Westwood NJ MA SAIF NASDAQ 06/07/96 24.250
WYNE Wayne Bancorp Inc. Wayne NJ MA SAIF NASDAQ 06/27/96 24.125
YFCB Yonkers Financial Corporation Yonkers NY MA SAIF NASDAQ 04/18/96 17.625
YFED York Financial Corp. York PA MA SAIF NASDAQ 02/01/84 24.250
Maximum 84.063
Minimum 3.969
Average 23.857
Median 21.250
6
Source: SNL & F&C calculations
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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
AADV 144.71 17.3 154.1 164.8 14.2 0.89 1,019,510 9.2 8.7 2.58 0.89
ABBK 56.13 17.0 162.8 180.8 11.3 1.31 501,256 6.9 6.3 1.79 0.73
ABCL 166.36 17.6 133.0 134.7 11.9 2.12 1,404,263 8.9 8.8 1.77 0.76
ABCW 242.05 7.8 101.0 102.9 6.3 1.20 1,925,866 6.2 6.1 3.44 0.96
AFCB 169.83 15.4 156.7 157.7 15.6 1.83 1,090,431 9.8 9.7 1.71 1.10
AHM 5,055.43 18.5 255.2 299.5 10.6 1.69 47,532,068 5.2 4.6 2.81 0.70
ALBC 5.81 24.0 97.0 97.0 8.5 1.38 68,628 8.7 8.7 0.97 0.37
ALBK 500.53 15.1 150.9 172.6 13.9 1.85 3,602,227 9.2 8.1 2.59 1.04
AMFC 13.98 21.3 99.2 99.2 14.8 1.66 94,179 15.0 15.0 0.68 0.80
ANDB 158.96 11.6 157.7 157.7 12.7 2.20 1,250,943 8.1 8.1 2.66 1.13
ASBI 67.43 20.5 154.7 154.9 17.0 3.07 397,730 11.0 11.0 1.02 0.84
ASBP 22.59 21.9 129.3 129.3 20.1 3.05 112,264 15.6 15.6 0.60 0.85
ASFC 999.79 17.0 167.9 199.9 13.1 1.25 7,664,495 7.8 6.7 2.83 0.79
BANC 289.47 18.8 186.7 227.3 10.5 0.91 2,730,474 5.6 4.7 0.68 0.64
BDJI 14.33 19.3 119.3 119.3 13.0 - 110,589 10.9 10.9 1.09 0.63
BFD 107.35 19.6 123.6 127.9 11.6 1.47 975,922 8.8 8.5 0.97 0.66
BFSB 27.56 15.5 135.9 135.9 20.4 2.32 135,455 14.2 14.2 1.56 1.28
BKC 87.04 14.4 173.4 180.6 14.4 3.82 605,857 8.3 8.0 2.63 1.10
BKCT 79.81 16.9 181.8 181.8 18.6 3.18 428,362 10.3 10.3 1.86 1.25
BKUNA 107.54 21.3 159.8 197.2 6.0 - 1,807,192 5.6 4.9 0.57 0.58
BVCC 336.66 17.4 171.6 204.4 10.9 1.23 3,096,213 6.3 5.4 1.49 0.63
CAFI 58.66 13.6 125.2 135.7 12.0 2.71 489,833 9.6 8.9 1.34 0.89
CAPS 29.56 14.1 138.5 138.5 12.2 1.54 242,518 8.8 8.8 1.11 0.92
CASB 34.06 21.0 150.9 150.9 9.3 - 368,126 6.1 6.1 0.63 0.52
CASH 49.21 13.0 115.2 130.1 13.1 2.00 374,824 11.4 10.2 1.38 0.93
CATB 80.21 20.2 108.6 108.6 27.2 1.71 284,238 25.0 25.0 0.81 1.41
CBCI 90.76 15.3 117.9 117.9 18.3 - 496,561 15.5 15.5 2.81 1.37
CBSA 146.66 12.8 150.3 180.8 5.0 1.63 2,964,082 3.3 2.8 2.31 0.41
CBSB 84.55 19.2 148.6 168.0 21.5 1.57 393,268 14.5 13.0 1.06 1.16
CEBK 38.81 13.4 113.5 126.9 11.3 1.62 344,420 9.9 9.0 1.47 0.88
CFB 948.32 15.5 222.6 251.0 13.4 0.64 7,096,665 6.0 5.4 2.84 0.91
CFFC 27.74 12.9 115.3 115.3 15.8 2.58 175,414 13.7 13.7 1.69 1.28
CFSB 135.06 16.7 209.5 209.5 16.0 2.26 845,438 7.6 7.6 1.59 1.07
CFTP 80.42 22.9 124.5 124.5 38.5 1.73 209,035 27.5 27.5 0.76 1.61
CFX 270.27 15.1 195.5 209.0 14.5 4.28 1,859,030 7.4 7.0 1.36 0.98
CIBI 14.41 15.7 129.6 129.6 15.6 2.07 92,304 12.0 12.0 0.99 0.92
CKFB 18.05 21.1 112.0 112.0 28.9 2.63 60,812 24.0 24.0 0.90 1.33
CLAS 18.43 19.4 95.0 112.4 14.1 1.98 130,525 14.9 12.9 0.73 0.72
CMRN 45.64 17.4 101.1 101.1 21.9 1.61 208,105 21.7 21.7 1.00 1.32
CMSB 288.49 20.3 130.9 167.4 12.6 1.66 2,288,986 9.6 7.7 0.83 0.64
CNIT 83.48 16.5 162.3 176.7 11.7 1.98 709,550 7.2 6.7 3.06 0.75
COFI 2,554.68 15.2 261.5 279.4 17.5 1.81 14,564,703 6.7 6.3 3.65 1.23
CRZY 13.96 20.9 99.6 99.6 25.7 2.74 54,275 25.8 25.8 0.70 1.30
CSA 870.29 19.6 194.3 196.8 9.6 - 9,102,743 4.9 4.9 2.38 0.52
CTZN 403.85 17.8 204.8 227.4 13.0 0.77 3,097,515 6.4 5.8 2.63 0.82
CVAL 45.40 15.9 159.7 159.7 13.4 2.00 323,673 8.4 8.4 1.32 0.91
DIBK 153.29 11.0 220.0 227.5 17.5 1.35 873,878 8.0 7.7 2.71 1.88
DIME 252.04 19.6 132.0 153.3 19.2 0.94 1,315,026 14.5 12.8 0.98 1.04
DME 2,022.52 15.1 191.0 200.2 10.1 0.82 20,087,176 5.3 5.0 1.29 0.70
DNFC 157.69 13.8 177.6 179.6 9.8 1.04 1,608,837 5.6 5.5 1.40 0.81
7
Source: SNL & F&C calculations
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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
DSL 594.82 15.7 145.8 147.8 10.1 1.44 5,885,670 6.9 6.8 1.42 0.73
EBSI 93.38 16.0 132.5 132.5 11.0 3.64 848,490 8.3 8.3 1.03 0.76
EFBI 40.02 19.1 126.7 126.7 15.1 5.00 264,266 12.0 12.0 1.05 0.82
EGFC 228.11 23.4 164.6 210.9 11.3 2.76 2,013,359 6.9 5.4 1.55 0.45
EIRE 48.89 13.7 162.4 162.4 11.5 1.29 425,014 7.1 7.1 1.59 0.89
EMLD 73.44 14.5 160.6 163.1 12.2 1.66 603,080 7.6 7.5 1.00 0.90
EQSB 22.85 11.5 147.1 147.1 7.4 - 308,197 5.0 5.0 3.30 0.73
ESBK 16.78 21.4 114.6 119.5 7.4 2.70 227,828 6.3 6.1 1.11 0.35
FBBC 103.36 13.8 147.3 147.3 14.5 2.52 714,366 9.8 9.8 1.15 1.23
FBCI 59.33 16.2 116.6 116.9 12.1 1.51 489,843 10.4 10.4 1.31 0.77
FBHC 28.33 23.1 147.4 158.3 8.9 1.17 318,668 6.0 5.6 1.48 0.51
FBSI 26.57 16.2 119.6 119.8 16.2 0.83 163,973 13.5 13.5 1.50 1.10
FCBF 112.01 23.1 146.3 146.3 21.3 2.91 526,203 14.6 14.6 1.19 1.06
FCME 14.78 2.5 105.1 105.1 9.7 - 152,386 9.2 9.2 4.39 4.08
FED 361.07 16.8 178.3 180.3 8.6 - 4,193,203 4.8 4.8 2.03 0.52
FESX 127.56 13.4 146.9 169.2 10.2 2.82 1,245,415 7.0 6.1 1.27 0.85
FFBA 312.64 17.2 160.1 162.3 20.7 2.33 1,510,376 12.9 12.8 1.10 1.21
FFBH 102.82 18.4 128.4 128.4 19.2 1.14 535,204 15.0 15.0 1.14 1.06
FFBI 7.84 21.2 107.1 107.1 9.3 - 84,531 8.7 8.7 0.89 0.41
FFBS 35.82 18.7 135.5 135.5 27.4 2.17 130,762 19.2 19.2 1.23 1.46
FFBZ 29.08 17.5 210.0 210.2 14.5 1.30 201,262 7.6 7.5 1.06 0.96
FFCH 209.77 15.9 205.9 205.9 12.6 2.18 1,667,178 6.1 6.1 2.08 0.84
FFDB 19.03 12.5 114.2 125.2 10.8 3.03 176,528 9.4 8.7 1.32 0.94
FFES 88.31 13.4 139.7 139.7 9.0 1.82 983,594 6.4 6.4 2.46 0.70
FFFC 132.51 19.5 168.4 172.0 23.7 1.64 558,886 13.2 12.9 1.50 1.34
FFFD 54.78 15.2 113.5 113.5 25.7 1.49 212,869 22.7 22.7 1.11 1.91
FFHH 53.83 17.8 110.7 110.7 14.2 2.82 378,233 11.4 11.4 1.00 0.84
FFHS 23.54 16.7 115.0 115.8 10.4 1.62 226,944 9.0 9.0 1.18 0.64
FFIC 161.57 20.9 121.4 121.4 18.8 1.19 860,031 15.5 15.5 0.97 0.94
FFKY 93.83 16.7 181.5 192.8 24.9 2.49 377,380 13.7 13.0 1.35 1.53
FFLC 74.16 22.1 142.1 142.1 19.2 1.50 387,097 13.5 13.5 1.45 1.01
FFOH 86.14 18.6 126.9 143.7 16.4 1.81 524,743 12.9 11.6 0.83 0.95
FFSL 12.89 18.3 112.1 112.1 11.7 1.92 110,876 10.4 10.4 0.71 0.69
FFWC 19.91 11.8 116.1 128.9 11.1 2.57 180,056 9.5 8.7 2.37 1.06
FFWD 35.22 18.9 174.6 174.6 21.5 2.41 163,918 12.3 12.3 0.88 1.26
FFYF 113.68 16.5 139.3 139.3 19.1 2.53 599,249 13.7 13.7 1.67 1.27
FGHC 23.66 21.0 184.1 200.8 15.1 0.69 156,383 8.2 7.6 0.37 0.78
FIBC 34.44 12.7 130.3 131.0 12.2 2.00 282,485 9.4 9.3 1.58 1.00
FKFS 34.99 14.0 149.3 149.3 10.9 0.70 320,797 7.3 7.3 2.04 0.78
FLFC 173.81 14.7 182.9 202.9 13.5 1.78 1,288,919 7.4 6.7 1.53 0.94
FMCO 60.28 11.4 165.7 168.7 10.9 1.11 554,925 6.6 6.5 2.22 1.02
FMSB 56.74 14.5 192.5 192.5 13.1 0.95 432,034 6.8 6.8 1.45 1.00
FNGB 121.47 12.9 168.9 168.9 19.1 2.33 637,725 11.3 11.3 1.07 0.90
FOBC 47.48 14.5 115.9 121.6 13.3 2.90 356,718 11.1 10.6 1.38 0.97
FRC 226.57 18.0 141.2 141.2 10.1 - 2,238,033 7.2 7.2 1.30 0.60
FSBI 32.93 12.7 134.2 134.2 9.1 1.69 363,302 6.8 6.8 1.67 0.83
FSPG 54.51 11.4 156.6 159.2 10.4 1.99 522,396 6.7 6.6 1.77 0.97
FSTC 58.85 11.4 177.9 228.7 17.3 1.38 338,857 9.7 7.7 2.80 1.90
FTF 39.83 13.3 148.0 148.0 23.3 2.52 171,358 15.7 15.7 1.67 1.73
FTFC 224.38 15.5 221.1 235.1 14.3 1.96 1,571,981 6.4 6.1 1.58 0.91
8
Source: SNL & F&C calculations
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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
FTSB 17.02 24.0 115.4 115.4 18.5 2.08 96,940 16.0 16.0 0.50 0.81
FWWB 258.34 21.4 157.1 170.1 24.1 1.14 1,074,166 14.2 13.3 1.15 1.16
GAF 148.72 20.9 130.7 132.1 19.8 2.58 749,748 15.2 15.0 0.89 1.12
GBCI 128.58 15.4 232.5 238.6 22.7 2.54 567,610 9.7 9.5 1.23 1.54
GDW 4,769.61 10.5 191.5 191.5 12.2 0.52 39,095,082 6.4 6.4 7.98 1.23
GFCO 28.50 14.1 104.7 106.1 9.9 3.20 287,088 9.5 9.4 1.77 0.71
GFSB 14.08 13.8 133.7 133.7 15.3 1.83 92,063 11.5 11.5 1.03 1.21
GPT 2,709.79 19.1 182.6 324.7 21.2 1.60 13,300,046 10.3 6.1 3.27 1.03
GSB 1,466.40 20.1 186.3 209.7 9.0 - 16,218,259 6.2 5.7 1.45 0.68
GSBC 137.79 13.6 228.2 228.2 19.5 2.35 707,841 8.5 8.5 1.25 1.54
GTFN 472.80 22.7 167.9 175.3 15.5 1.75 3,046,227 9.2 8.9 1.51 0.72
GUPB 15.08 22.3 111.1 111.1 18.1 2.13 86,911 16.3 16.3 0.84 0.93
HALL 32.11 13.2 108.2 108.2 7.8 - 409,820 7.2 7.2 1.68 0.61
HARB 270.88 20.7 289.1 299.0 24.3 2.57 1,116,718 8.4 8.1 2.63 1.22
HARL 42.96 13.3 195.3 195.3 12.8 1.54 336,666 6.5 6.5 1.95 1.02
HAVN 170.40 12.3 160.6 161.2 9.6 1.54 1,781,545 6.0 5.9 3.16 0.84
HBFW 55.55 18.8 124.9 124.9 16.6 0.91 334,862 13.3 13.3 1.17 0.89
HBNK 69.58 21.8 184.6 184.6 13.8 - 504,381 7.5 7.5 1.39 0.67
HBS 23.76 15.2 113.4 117.6 15.8 2.95 150,416 13.9 13.5 1.25 1.15
HFFB 30.88 20.3 97.3 97.3 28.3 2.62 108,950 26.9 26.9 0.75 1.35
HFFC 65.55 13.8 123.7 123.7 11.7 1.91 561,664 9.4 9.4 1.60 0.89
HFGI 39.08 17.7 156.5 156.5 8.8 1.00 446,797 5.6 5.6 0.68 0.44
HFSA 14.50 19.4 107.6 107.6 13.4 2.84 108,018 12.5 12.5 0.87 0.79
HHFC 10.75 22.2 103.9 103.9 12.3 3.40 87,596 11.8 11.8 0.53 0.57
HIFS 31.61 13.0 155.3 155.3 14.5 1.98 217,586 9.4 9.4 1.86 1.22
HMCI 27.51 20.6 126.9 126.9 8.3 - 331,608 6.5 6.5 0.79 0.42
HMNF 106.35 21.4 130.0 130.0 18.8 - 566,865 14.4 14.4 1.18 0.88
HOMF 101.89 13.2 176.0 181.6 14.9 1.67 682,796 8.5 8.2 2.28 1.22
HPBC 40.98 12.9 195.4 195.4 20.6 3.60 198,748 10.6 10.6 1.72 1.68
HRBF 32.17 20.4 115.3 115.3 14.9 2.11 216,370 12.9 12.9 0.93 0.70
HRZB 113.11 14.5 139.8 139.8 21.8 2.62 518,661 15.6 15.6 1.05 1.54
HZFS 8.03 17.5 95.5 95.5 9.3 1.70 85,969 9.8 9.8 1.08 0.55
IFSB 16.65 23.6 93.6 105.9 6.4 1.69 258,460 6.9 6.1 0.55 0.27
INBI 80.47 18.8 131.1 131.1 23.2 3.15 346,596 17.7 17.7 0.81 1.27
IPSW 30.89 10.2 142.7 142.7 8.2 0.92 189,379 5.7 5.7 1.27 0.97
ISBF 172.52 22.3 142.0 166.9 18.2 1.60 947,107 12.0 10.4 1.12 0.85
ITLA 139.26 12.5 148.9 149.5 16.4 - 850,201 11.0 11.0 1.42 1.48
IWBK 311.39 16.8 250.7 256.1 17.0 1.55 1,832,582 6.8 6.6 2.31 1.10
JSB 454.82 18.2 129.6 129.6 29.6 3.04 1,531,115 22.9 22.9 2.53 1.70
JSBA 166.42 15.5 138.8 178.9 12.9 1.20 1,292,021 8.5 6.8 2.14 0.77
JXVL 41.31 7.4 123.6 123.6 18.4 2.99 226,182 14.9 14.9 2.28 1.33
KFBI 195.36 22.9 125.2 125.2 26.8 1.54 727,903 19.6 19.6 0.85 1.19
KNK 41.33 14.8 109.1 116.1 12.1 1.66 341,678 11.1 10.5 1.96 0.82
KSAV 16.38 12.0 114.1 114.2 15.4 3.24 106,121 13.5 13.5 1.54 1.24
KSBK 17.64 11.2 168.4 178.1 12.1 0.56 145,888 7.2 6.8 1.27 1.08
KYF 16.49 16.0 112.0 112.0 18.5 4.00 88,959 16.6 16.6 0.78 1.13
LARK 41.59 19.0 132.2 132.2 18.2 1.65 228,100 13.8 13.8 1.28 1.04
LARL 32.46 12.0 152.7 152.7 15.3 2.31 211,987 10.0 10.0 1.87 1.43
LIFB 242.48 18.7 154.5 159.1 16.3 1.95 1,488,257 10.6 10.3 1.32 0.86
LISB 961.73 23.7 181.0 182.8 16.3 1.50 5,908,737 9.0 8.9 1.69 0.72
9
Source: SNL & F&C calculations
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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
LOGN 18.43 15.6 115.5 115.5 22.2 2.74 83,152 19.2 19.2 0.94 1.51
LONF 7.65 19.5 102.7 102.7 20.2 1.60 38,240 19.7 19.7 0.77 0.99
LSBI 19.70 15.1 108.6 108.6 10.3 1.58 194,117 8.9 8.9 1.42 0.68
LSBX 48.72 8.4 152.7 152.7 13.3 - 366,318 8.7 8.7 1.36 1.73
LVSB 74.83 18.9 165.8 207.3 15.8 0.76 481,646 9.5 7.8 1.75 0.95
LXMO 18.22 21.1 108.6 108.6 30.8 1.88 59,236 28.3 28.3 0.76 1.32
MAFB 477.39 13.6 184.6 211.3 14.4 0.90 3,321,464 7.8 6.9 2.28 1.16
MARN 41.55 15.2 106.4 106.4 24.0 3.75 173,304 22.5 22.5 1.55 1.67
MASB 139.66 15.3 144.8 144.8 15.4 2.46 905,417 10.6 10.6 3.39 1.04
MBB 66.13 21.7 109.9 224.0 8.1 2.58 813,902 8.9 5.4 1.07 0.51
MBB 66.13 21.7 109.9 224.0 8.1 2.58 813,902 8.9 5.4 1.07 0.51
MBLF 30.84 17.9 108.1 108.1 13.1 1.68 234,824 12.2 12.2 1.33 0.85
MCBN 5.93 15.3 115.4 115.4 9.9 2.04 59,739 8.6 8.6 1.67 0.67
MDBK 143.61 14.4 148.9 159.8 13.4 2.28 1,072,557 9.0 8.4 2.19 1.01
MECH 126.96 8.5 150.7 150.7 15.4 - 823,575 10.2 10.2 2.82 1.95
MERI 31.77 14.0 169.5 169.5 13.9 1.71 228,485 8.2 8.2 2.94 1.05
METF 63.90 15.0 196.6 217.3 7.8 - 821,280 4.0 3.6 1.21 0.54
MFBC 39.09 21.2 115.3 115.3 15.8 1.38 248,241 13.7 13.7 1.09 0.86
MFFC 31.69 24.6 112.2 112.2 15.9 4.36 199,886 13.1 13.1 0.56 0.69
MFLR 17.36 15.7 142.7 145.1 13.8 3.49 125,671 9.7 9.5 1.24 0.92
MFSL 138.03 13.6 142.3 144.1 11.9 1.86 1,157,445 8.4 8.3 3.17 0.89
MIVI 12.69 17.8 96.3 96.3 18.2 1.03 69,775 18.9 18.9 0.87 1.03
MLBC 219.25 18.4 151.7 154.4 10.6 1.93 2,071,285 7.0 6.9 1.13 0.68
MSBF 16.54 16.4 130.3 130.3 22.2 2.11 74,698 17.0 17.0 0.81 1.46
MWBI 12.25 12.8 123.9 123.9 8.6 1.67 146,542 6.9 6.9 2.81 0.75
MWBX 90.69 12.8 215.2 215.2 16.0 1.85 566,517 7.5 7.5 0.51 1.37
MWFD 33.77 16.7 185.1 192.0 16.3 1.64 207,050 8.8 8.5 1.24 1.09
NASB 109.58 12.8 193.1 199.8 14.8 1.63 736,585 7.7 7.4 3.82 1.20
NBN 18.90 22.2 108.4 125.4 7.5 2.19 247,525 7.8 6.9 0.66 0.50
NEIB 30.85 15.1 115.2 115.2 17.5 1.83 176,309 15.2 15.2 1.16 1.21
NHTB 37.68 22.0 154.9 182.0 11.9 2.74 315,280 7.7 6.6 0.83 0.61
NMSB 49.36 22.2 155.7 155.7 15.3 1.86 323,061 9.8 9.8 0.58 0.80
NSSB 156.98 22.3 197.3 218.5 22.0 1.93 712,699 11.2 10.2 1.30 1.05
NWEQ 14.05 15.7 117.7 117.7 14.5 3.10 96,891 11.5 11.5 1.07 0.98
NYB 663.93 15.9 397.8 397.8 20.2 1.95 3,283,653 5.1 5.1 1.93 1.45
OFCP 124.67 19.8 165.7 206.5 14.5 1.58 861,334 8.7 7.1 1.28 0.76
OHSL 27.81 15.6 109.6 109.6 12.1 3.79 230,035 11.0 11.0 1.49 0.85
PALM 85.21 21.8 155.5 155.5 12.8 0.74 664,863 8.2 8.2 0.74 0.60
PAMM 87.39 5.9 148.9 148.9 32.1 - 136,110 21.6 21.6 3.89 9.57
PBCI 59.70 14.4 126.4 127.4 16.1 4.76 370,987 12.7 12.7 1.46 1.24
PBHC 34.50 21.7 154.1 185.2 18.1 1.56 190,899 11.7 10.0 0.83 0.80
PBKB 56.02 21.6 185.3 192.5 10.6 2.55 585,678 5.7 5.5 0.80 0.53
PCBC 17.70 15.8 113.6 113.6 21.8 1.87 81,105 19.2 19.2 1.35 1.07
PCCI 44.81 15.3 170.4 170.4 12.1 - 371,126 7.1 7.1 1.00 0.98
PEEK 52.29 22.1 111.3 111.3 28.6 2.20 182,560 25.7 25.7 0.74 1.29
PERM 47.79 19.0 115.3 117.0 10.6 1.76 433,239 9.2 9.0 1.20 0.62
PFDC 58.27 13.8 133.3 133.3 20.3 2.34 287,564 15.2 15.2 1.86 1.46
PFNC 60.07 23.1 257.3 291.3 13.7 0.76 418,658 5.3 4.7 0.65 0.64
PFSB 142.25 14.1 135.1 161.6 10.8 0.95 1,321,751 7.4 6.2 2.09 0.84
PFSL 42.44 16.7 176.2 176.2 11.2 3.46 378,700 6.4 6.4 1.56 0.69
10
Source: SNL F&C Calculations
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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
PHBK 1,036.51 15.4 239.4 284.1 18.5 2.01 5,591,180 7.7 6.6 2.46 1.31
PHFC 36.93 20.4 132.0 133.5 14.4 1.28 256,265 10.9 10.8 0.92 0.80
PKPS 91.70 20.2 124.5 124.5 10.4 1.37 880,196 8.4 8.4 0.36 0.54
PRBC 15.67 19.7 103.7 103.7 11.5 0.70 135,721 11.1 11.1 0.87 0.65
PSBK 126.09 14.7 167.8 187.8 14.4 2.06 878,823 8.6 7.7 2.24 0.97
PTRS 11.79 12.0 109.2 109.2 9.6 1.50 121,189 8.8 8.8 2.00 0.84
PULS 65.46 12.4 155.9 155.9 12.5 3.29 520,203 8.1 8.1 1.71 1.06
PVFC 51.75 8.5 206.8 206.8 14.5 - 356,251 7.0 7.0 2.39 1.35
PVSA 120.13 12.1 159.8 161.0 12.1 1.76 991,239 7.6 7.5 2.44 1.08
PWBC 83.56 14.6 126.6 135.4 10.2 2.08 816,954 8.1 7.6 1.08 0.66
QCBC 99.94 21.3 142.2 142.3 12.5 - 801,402 8.8 8.8 1.00 0.61
QCFB 37.08 14.5 137.0 137.0 24.8 - 149,637 18.1 18.1 1.79 1.66
RARB 57.88 15.9 192.3 195.4 15.3 2.00 379,428 7.9 7.8 1.51 1.03
REDF 125.55 23.7 162.8 163.4 13.8 - 912,237 8.5 8.4 0.74 0.64
RELY 276.45 17.6 169.9 235.8 14.0 2.03 1,976,764 8.2 6.1 1.79 0.87
ROSE 475.30 16.4 200.7 200.7 13.3 2.22 3,551,783 6.2 6.2 1.65 0.89
RVSB 65.30 24.6 253.1 277.2 28.4 0.89 229,652 11.2 10.4 1.10 1.20
SFED 23.70 17.5 110.4 110.4 13.8 1.46 172,849 12.5 12.5 1.10 0.79
SFFC 17.24 15.2 113.2 113.2 20.1 1.82 85,679 17.8 17.8 1.45 1.37
SFIN 88.32 13.7 134.9 135.2 13.1 2.35 673,214 9.7 9.7 1.37 0.90
SFSB 34.71 16.3 125.5 125.9 8.1 1.16 426,705 6.5 6.5 1.69 0.56
SFSL 145.95 14.9 237.1 240.9 22.3 1.66 653,226 9.4 9.3 1.29 1.34
SISB 165.91 9.0 162.5 162.5 11.6 1.88 1,434,545 7.2 7.2 3.30 1.38
SKAN 21.95 13.5 129.3 133.4 8.9 1.74 247,697 6.9 6.7 1.71 0.68
SMBC 27.84 16.7 107.3 107.3 16.8 - 165,688 15.7 15.7 1.02 1.01
SOPN 75.88 17.6 113.0 113.0 25.8 3.88 294,217 22.8 22.8 1.17 1.69
SOSA 66.09 15.9 202.5 202.5 12.8 - 514,502 6.3 6.3 0.25 0.79
SPBC 798.72 17.8 201.4 201.9 17.3 1.70 4,611,394 8.6 8.6 1.32 1.04
SSM 40.33 21.0 131.7 131.7 38.0 2.12 106,115 28.9 28.9 1.01 1.71
STFR 182.95 17.9 142.7 161.4 11.1 1.39 1,645,539 7.9 7.0 1.93 0.71
STSA 103.68 22.4 153.0 175.5 6.2 - 1,686,395 5.5 5.0 0.83 0.44
SWBI 53.67 14.8 129.2 129.2 14.2 3.75 378,325 11.0 11.0 1.37 1.01
SWCB 62.01 13.9 155.4 162.4 12.4 3.71 501,894 8.0 7.6 2.33 0.98
TBK 27.50 15.7 166.3 171.1 11.5 1.14 238,227 6.9 6.8 1.12 0.79
THR 13.38 17.5 106.7 107.1 14.7 2.46 91,165 13.8 13.7 0.93 0.83
THRD 80.13 17.4 104.1 118.7 12.5 2.04 640,746 11.1 9.9 1.13 0.73
TPNZ 25.82 20.8 122.3 122.3 20.8 1.62 124,150 17.0 17.0 0.83 1.00
TRIC 13.85 16.5 101.1 101.1 15.5 2.64 89,457 15.3 15.3 1.38 1.02
TSH 63.59 16.1 119.1 119.1 15.7 2.70 406,253 13.1 13.1 1.15 0.96
TWIN 17.07 20.6 123.7 123.7 15.9 3.20 107,345 12.9 12.9 0.97 0.75
UBMT 28.90 19.5 117.5 117.5 27.4 4.15 105,600 23.3 23.3 1.21 1.39
VABF 70.29 24.8 166.2 166.2 11.4 1.42 617,818 6.9 6.9 0.57 0.46
WAMU 15,876.83 24.6 305.8 322.3 16.3 1.71 48,763,153 5.2 5.0 2.56 0.71
WBST 749.26 17.5 221.8 259.6 11.1 1.45 5,943,766 5.0 4.3 3.15 0.71
WCBI 65.62 16.7 138.2 138.2 21.1 2.26 311,613 15.2 15.2 1.59 1.41
WEFC 32.33 15.1 112.8 112.8 16.0 2.91 202,035 14.2 14.2 1.09 1.06
WFI 32.27 12.9 143.1 146.1 10.2 2.83 317,392 7.1 7.0 1.26 0.88
WFSL 1,296.51 12.5 186.3 204.0 22.5 3.37 5,760,385 12.1 11.2 2.18 1.84
WRNB 67.71 10.9 182.0 182.0 18.9 2.91 358,021 10.4 10.4 1.64 1.83
WSB 29.20 16.8 136.1 136.1 11.3 1.46 258,330 8.3 8.3 0.41 0.73
11
Source: SNL F&C Calculations
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 B Value B Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM LTM
WSFS 187.87 10.9 239.3 241.2 12.5 - 1,508,540 5.2 5.2 1.39 1.34
WSTR 118.95 17.7 114.1 142.6 12.5 2.06 955,639 10.9 8.9 1.21 0.82
WVFC 47.18 12.9 143.5 143.5 16.0 2.96 294,693 11.2 11.2 2.10 1.32
WWFC 15.65 18.2 153.9 172.7 14.1 0.83 111,394 9.1 8.2 1.33 0.85
WYNE 51.14 21.7 146.8 146.8 19.6 0.83 261,027 13.4 13.4 1.11 0.92
YFCB 53.24 17.1 124.7 124.7 18.6 1.36 288,089 14.9 14.9 1.03 1.15
YFED 169.95 19.3 169.8 169.8 14.6 2.47 1,162,393 8.6 8.6 1.26 0.77
Maximum 15,876.83 24.8 397.8 397.8 38.5 5.00 48,763,153 28.9 28.9 7.98 9.57
Minimum 5.81 2.5 93.6 95.5 5.0 - 38,240 3.3 2.8 0.25 0.27
Average 251.94 16.8 149.9 157.8 15.3 1.80 1,612,216 10.8 10.5 1.52 1.02
Median 60.07 16.7 142.7 147.1 14.3 1.76 397,730 9.4 8.9 1.32 0.93
12
Source: SNL F&C Calculations
FERGUSON & COMPANY Exhibit V - Selected Publicly Held Thrifts
- ------------------
Core NPAs/ Price/ Core Core Core
ROAE Merger Current Assets Core EPS ROAA ROAE
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date MRQ (x) MRQ MRQ MRQ
AADV 9.89 N 09/02/97 0.44 15.5 0.72 0.98 10.77
ABBK 10.71 N 09/02/97 0.17 15.3 0.50 0.81 11.68
ABCL 8.48 N 09/02/97 0.15 17.3 0.45 0.77 8.35
ABCW 15.09 N 09/02/97 0.92 7.4 0.91 0.91 13.93
AFCB 11.14 N 09/02/97 0.39 14.9 0.44 1.10 11.18
AHM 13.79 N 09/02/97 1.90 17.3 0.75 0.73 14.74
ALBC 4.03 N 09/02/97 0.72 32.3 0.18 0.27 3.03
ALBK 11.23 N 09/02/97 0.71 14.6 0.67 1.05 11.37
AMFC 4.54 N 09/02/97 0.81 21.3 0.17 0.67 4.28
ANDB 14.33 N 09/02/97 1.01 12.9 0.60 1.00 12.54
ASBI 7.64 N 09/02/97 0.40 20.9 0.25 0.83 7.60
ASBP 4.45 N 09/02/97 0.88 17.3 0.19 1.06 6.78
ASFC 10.05 N 09/02/97 0.45 17.7 0.68 0.75 9.80
BANC 10.83 N 09/02/97 0.87 19.9 0.16 0.66 11.50
BDJI 5.48 N 09/02/97 0.23 15.9 0.33 0.69 6.37
BFD 6.48 N 09/02/97 0.52 17.6 0.27 0.65 7.14
BFSB 8.90 N 09/02/97 - 15.9 0.38 1.22 8.52
BKC 12.98 N 09/02/97 1.81 12.9 0.73 1.16 14.12
BKCT 12.07 N 09/02/97 1.19 15.8 0.50 1.29 12.72
BKUNA 8.04 N 09/02/97 0.60 21.7 0.14 0.48 8.00
BVCC 10.26 N 09/02/97 0.79 18.5 0.35 0.60 9.51
CAFI 9.59 N 09/02/97 0.34 12.0 0.38 1.02 10.59
CAPS 10.16 N 09/02/97 0.17 13.0 0.30 0.96 10.97
CASB 8.53 N 09/02/97 0.39 17.4 0.19 0.61 9.92
CASH 8.12 N 09/02/97 0.85 14.5 0.31 0.92 7.98
CATB 5.10 N 09/02/97 0.47 19.5 0.21 1.35 5.24
CBCI 8.66 N 09/02/97 1.16 12.4 0.87 1.60 10.40
CBSA 12.30 N 09/02/97 0.54 13.4 0.55 0.39 11.51
CBSB 7.78 N 09/02/97 0.56 20.4 0.25 1.08 7.67
CEBK 8.75 N 09/02/97 0.85 15.9 0.31 0.73 7.16
CFB 15.58 N 09/02/97 0.89 14.1 0.78 0.97 16.34
CFFC 9.23 N 09/02/97 0.39 13.9 0.39 1.16 8.41
CFSB 13.83 N 09/02/97 0.17 14.1 0.47 1.22 15.91
CFTP 4.97 N 09/02/97 0.30 29.0 0.15 1.27 4.30
CFX 11.60 N 09/02/97 0.72 16.1 0.32 0.96 12.20
CIBI 7.98 N 09/02/97 0.63 14.9 0.26 0.96 8.28
CKFB 5.37 N 09/02/97 0.63 19.0 0.25 1.47 6.16
CLAS 4.64 N 09/02/97 0.66 17.7 0.20 0.72 4.89
CMRN 5.51 N 09/02/97 0.24 17.4 0.25 1.26 5.63
CMSB 6.15 N 09/02/97 0.50 24.8 0.17 0.48 5.01
CNIT 10.46 N 09/02/97 0.42 15.2 0.83 0.81 11.22
COFI 18.22 N 09/02/97 0.22 14.4 0.96 1.27 18.76
CRZY 4.54 N 09/02/97 0.39 18.3 0.20 1.34 5.07
CSA 10.65 N 09/02/97 1.40 18.0 0.65 0.56 11.43
CTZN 12.75 N 09/02/97 0.41 15.6 0.75 0.89 13.88
CVAL 10.36 N 09/02/97 0.23 15.4 0.34 0.89 10.56
DIBK 23.00 N 09/02/97 0.38 9.7 0.77 1.97 25.24
DIME 6.20 N 09/02/97 0.73 28.3 0.17 0.70 47.43
DME 13.30 N 09/02/97 1.57 19.5 0.25 0.54 10.16
DNFC 14.10 N 09/02/97 0.34 13.4 0.36 0.79 13.96
13
Source: SNL & F&C calculations
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
DSL 9.65 N 09/02/97 0.95 18.5 0.30 0.57 8.03
EBSI 8.78 N 09/02/97 1.07 15.3 0.27 0.76 8.92
EFBI 6.28 N 09/02/97 0.03 17.9 0.28 0.85 6.97
EGFC 6.26 N 09/02/97 0.52 NM (0.23) (0.30) (4.20)
EIRE 12.99 N 09/02/97 0.40 13.0 0.42 0.93 13.30
EMLD 11.63 N 09/02/97 0.14 12.5 0.29 0.98 13.07
EQSB 14.49 N 09/02/97 0.15 11.6 0.82 0.70 13.83
ESBK 5.53 N 09/02/97 0.65 17.0 0.35 0.43 6.85
FBBC 8.92 N 09/02/97 0.07 14.2 0.28 0.98 10.10
FBCI 7.37 N 09/02/97 0.80 14.4 0.37 0.84 8.12
FBHC 8.10 N 09/02/97 0.37 19.9 0.43 0.60 9.70
FBSI 7.54 N 09/02/97 0.10 17.3 0.35 0.97 7.02
FCBF 6.32 N 09/02/97 0.15 22.2 0.31 1.08 6.92
FCME 53.13 N 09/02/97 1.95 13.6 0.20 0.73 7.90
FED 11.28 N 09/02/97 1.39 17.1 0.50 0.51 10.73
FESX 11.63 N 09/02/97 0.56 15.2 0.28 0.72 10.19
FFBA 8.59 N 09/02/97 0.23 16.9 0.28 1.19 9.25
FFBH 6.61 N 09/02/97 0.19 22.8 0.23 0.81 5.24
FFBI 5.11 N 09/02/97 0.39 22.5 0.21 0.38 4.64
FFBS 7.50 N 09/02/97 0.03 23.0 0.25 1.17 6.06
FFBZ 12.66 N 09/02/97 0.47 14.5 0.32 1.11 14.72
FFCH 13.67 N 09/02/97 1.61 15.3 0.54 0.84 13.68
FFDB 9.54 N 09/02/97 0.72 12.2 0.34 0.98 10.05
FFES 11.12 N 09/02/97 0.31 14.7 0.56 0.64 10.10
FFFC 9.56 N 09/02/97 0.18 17.9 0.41 1.35 10.37
FFFD 7.44 N 09/02/97 0.12 14.0 0.30 1.86 7.86
FFHH 6.65 N 09/02/97 0.03 15.3 0.29 0.87 7.55
FFHS 7.08 N 09/02/97 0.41 14.5 0.34 0.73 8.16
FFIC 5.62 N 09/02/97 0.29 17.5 0.29 1.01 6.49
FFKY 11.20 N 09/02/97 0.23 14.8 0.38 1.68 12.28
FFLC 6.56 N 09/02/97 0.19 20.5 0.39 0.96 6.91
FFOH 6.61 N 09/02/97 0.08 16.8 0.23 0.94 7.17
FFSL 6.20 N 09/02/97 0.37 18.1 0.18 0.64 6.17
FFWC 10.49 N 09/02/97 0.16 13.0 0.54 0.93 9.35
FFWD 9.76 N 09/02/97 0.02 17.3 0.24 1.29 10.36
FFYF 8.06 N 09/02/97 0.67 13.8 0.50 1.33 9.62
FGHC 9.53 N 09/02/97 1.41 16.2 0.12 1.00 11.97
FIBC 10.16 N 09/02/97 1.71 12.5 0.40 0.96 10.04
FKFS 10.49 N 09/02/97 1.60 13.0 0.55 0.78 10.93
FLFC 12.81 N 09/02/97 0.81 13.7 0.41 1.02 13.61
FMCO 15.76 N 09/02/97 1.06 10.5 0.60 1.05 16.36
FMSB 15.01 N 09/02/97 - 13.8 0.38 0.99 14.73
FNGB 7.86 N 09/02/97 0.06 22.9 0.15 0.89 7.82
FOBC 8.35 N 09/02/97 0.15 14.7 0.34 0.93 8.36
FRC 9.49 N 09/02/97 1.01 17.2 0.34 0.65 8.73
FSBI 11.94 N 09/02/97 0.31 13.3 0.40 0.75 10.90
FSPG 14.79 N 09/02/97 0.64 12.6 0.40 0.86 12.91
FSTC 19.95 N 09/02/97 NA 5.2 1.55 3.68 38.97
FTF 10.43 N 09/02/97 0.12 11.8 0.47 1.86 11.74
FTFC 13.94 N 09/02/97 NA 17.0 0.36 0.94 14.41
14
Source: SNL & F&C calculations
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
FTSB 4.47 N 09/02/97 1.42 13.0 0.23 1.38 8.60
FWWB 7.58 N 09/02/97 0.29 19.2 0.32 1.21 8.28
GAF 5.80 N 09/02/97 0.12 17.9 0.26 1.10 6.97
GBCI 16.25 N 09/02/97 0.12 13.9 0.34 1.64 17.10
GDW 19.73 N 09/02/97 1.31 14.0 1.50 0.88 13.91
GFCO 7.47 N 09/02/97 0.11 12.0 0.52 0.83 8.67
GFSB 10.35 N 09/02/97 NA 11.9 0.30 1.37 11.88
GPT 9.59 N 09/02/97 2.89 17.4 0.90 1.12 10.49
GSB 10.56 N 09/02/97 1.46 16.9 0.43 0.74 11.55
GSBC 17.00 N 09/02/97 1.91 11.8 0.36 1.66 19.65
GTFN 7.50 N 09/02/97 0.36 20.4 0.42 0.77 8.37
GUPB 4.89 N 09/02/97 0.18 22.3 0.21 0.81 4.74
HALL 8.62 N 09/02/97 0.15 11.8 0.47 0.67 9.40
HARB 14.82 N 09/02/97 0.46 20.3 0.67 1.21 14.61
HARL 16.03 N 09/02/97 - 12.3 0.53 1.09 16.89
HAVN 13.80 N 09/02/97 0.74 19.4 0.50 0.53 8.81
HBFW 6.29 N 09/02/97 - 17.7 0.31 0.89 6.61
HBNK 9.20 N 09/02/97 3.09 13.0 0.58 1.10 14.97
HBS 7.72 N 09/02/97 1.97 14.4 0.33 1.12 7.99
HFFB 4.99 N 09/02/97 - 19.1 0.20 1.39 5.23
HFFC 9.66 N 09/02/97 0.33 12.2 0.45 0.99 10.56
HFGI 9.25 N 09/02/97 0.25 27.3 0.11 0.30 5.89
HFSA 5.37 N 09/02/97 0.09 17.6 0.24 0.77 6.00
HHFC 4.44 N 09/02/97 0.11 15.5 0.19 0.80 6.56
HIFS 12.54 N 09/02/97 0.41 11.9 0.51 1.27 13.18
HMCI 6.80 N 09/02/97 2.91 17.7 0.23 0.51 7.88
HMNF 5.90 N 09/02/97 0.08 20.4 0.31 0.87 5.99
HOMF 14.67 N 09/02/97 0.45 13.9 0.54 1.13 13.40
HPBC 15.76 N 09/02/97 - 12.4 0.45 1.68 15.74
HRBF 5.41 N 09/02/97 0.05 19.0 0.25 0.74 5.80
HRZB 9.82 N 09/02/97 - 13.6 0.28 1.57 10.19
HZFS 5.25 N 09/02/97 0.96 22.5 0.21 0.43 4.23
IFSB 4.09 N 09/02/97 2.02 108.3 0.03 0.06 0.85
INBI 6.78 N 09/02/97 0.22 14.7 0.26 1.51 8.43
IPSW 16.21 N 09/02/97 1.52 8.8 0.37 1.03 17.52
ISBF 6.26 N 09/02/97 NA 22.3 0.28 0.76 6.27
ITLA 12.72 N 09/02/97 1.47 11.7 0.38 1.52 13.13
IWBK 16.39 N 09/02/97 0.64 15.9 0.61 1.10 16.36
JSB 7.77 N 09/02/97 NA 16.7 0.69 1.85 8.24
JSBA 9.84 N 09/02/97 0.46 15.1 0.55 0.81 9.67
JXVL 8.42 N 09/02/97 0.78 10.2 0.41 1.75 11.48
KFBI 5.37 N 09/02/97 0.08 22.2 0.22 1.16 5.77
KNK 7.89 N 09/02/97 0.61 14.5 0.50 0.88 8.12
KSAV 8.86 N 09/02/97 0.35 12.2 0.38 1.39 10.15
KSBK 15.21 N 09/02/97 1.75 11.9 0.30 0.98 13.70
KYF 5.83 N 09/02/97 - 15.6 0.20 1.17 7.19
LARK 7.02 N 09/02/97 0.04 19.6 0.31 0.97 6.90
LARL 13.65 N 09/02/97 0.43 11.7 0.48 1.39 13.70
LIFB 8.06 N 09/02/97 0.39 18.7 0.33 0.89 8.33
LISB 7.63 N 09/02/97 1.03 22.8 0.44 0.71 7.78
15
Source: SNL & F&C calculations
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
LOGN 7.40 N 09/02/97 0.61 15.2 0.24 1.46 7.53
LONF 4.77 N 09/02/97 0.80 22.1 0.17 0.85 4.30
LSBI 7.38 N 09/02/97 1.17 14.1 0.38 0.70 7.88
LSBX 20.78 N 09/02/97 0.30 8.9 0.32 1.60 18.57
LVSB 9.52 N 09/02/97 0.98 15.0 0.55 1.14 11.56
LXMO 4.46 N 09/02/97 0.48 18.2 0.22 1.52 5.43
MAFB 14.83 N 09/02/97 0.43 12.1 0.64 1.24 15.73
MARN 7.28 N 09/02/97 0.81 14.7 0.40 1.72 7.53
MASB 10.20 N 09/02/97 0.16 14.1 0.92 1.13 10.85
MBB 5.95 N 09/02/97 0.71 19.4 0.30 0.56 6.37
MBB 5.95 N 09/02/97 0.71 19.4 0.30 0.56 6.37
MBLF 6.52 N 09/02/97 0.25 18.6 0.32 0.79 6.21
MCBN 7.57 N 09/02/97 0.73 13.0 0.49 0.75 8.76
MDBK 11.31 N 09/02/97 0.37 14.1 0.56 1.00 11.31
MECH 19.68 N 09/02/97 1.13 4.4 1.38 3.60 36.83
MERI 13.46 N 09/02/97 0.22 11.5 0.89 1.27 15.91
METF 13.86 N 09/02/97 0.49 13.3 0.34 0.59 15.15
MFBC 5.53 N 09/02/97 - 19.3 0.30 0.85 6.06
MFFC 4.30 N 09/02/97 0.15 22.9 0.15 0.70 5.11
MFLR 9.53 N 09/02/97 0.81 14.8 0.33 0.94 9.83
MFSL 10.76 N 09/02/97 0.44 15.1 0.71 0.80 9.60
MIVI 5.77 N 09/02/97 0.28 14.9 0.26 1.18 6.82
MLBC 9.23 N 09/02/97 0.46 22.6 0.23 0.52 7.41
MSBF 7.85 N 09/02/97 0.06 14.4 0.23 1.43 8.39
MWBI 10.82 N 09/02/97 0.77 11.5 0.78 0.81 11.75
MWBX 17.82 N 09/02/97 0.70 11.6 0.14 1.36 18.35
MWFD 12.59 N 09/02/97 0.12 15.7 0.33 1.11 12.75
NASB 16.21 N 09/02/97 3.11 12.5 0.98 1.24 15.90
NBN 6.24 N 09/02/97 1.37 14.1 0.26 0.66 8.48
NEIB 7.43 N 09/02/97 0.40 13.7 0.32 1.20 7.88
NHTB 8.22 N 09/02/97 0.70 15.2 0.30 0.87 11.73
NMSB 7.67 N 09/02/97 0.87 21.5 0.15 0.81 8.07
NSSB 9.60 N 09/02/97 1.29 22.0 0.33 1.06 9.55
NWEQ 8.16 N 09/02/97 1.25 13.1 0.32 1.02 8.96
NYB 27.70 N 09/02/97 1.09 13.3 0.58 1.63 32.18
OFCP 8.36 N 09/02/97 0.16 16.7 0.38 0.87 10.01
OHSL 7.42 N 09/02/97 0.01 14.5 0.40 0.86 7.92
PALM 7.44 N 09/02/97 2.12 16.1 0.25 0.82 9.99
PAMM 49.37 N 09/02/97 3.47 3.4 1.70 13.21 58.78
PBCI 8.63 N 09/02/97 2.14 11.9 0.44 1.37 10.69
PBHC 7.09 N 09/02/97 1.17 16.1 0.28 1.11 9.66
PBKB 9.27 N 09/02/97 0.82 22.7 0.19 0.50 8.86
PCBC 5.72 N 09/02/97 - 17.8 0.30 1.16 6.18
PCCI 12.40 N 09/02/97 1.29 12.7 0.30 1.04 14.25
PEEK 4.71 N 09/02/97 0.71 24.1 0.17 1.13 4.38
PERM 6.52 N 09/02/97 1.09 18.4 0.31 0.58 6.32
PFDC 9.55 N 09/02/97 0.34 13.4 0.48 1.53 10.08
PFNC 12.31 N 09/02/97 1.46 17.1 0.22 0.84 15.89
PFSB 10.78 N 09/02/97 0.59 13.4 0.55 0.83 11.06
PFSL 11.23 N 09/02/97 0.10 17.1 0.38 0.66 10.39
16
Source: SNL & F&C calculations
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
PHBK 16.17 N 09/02/97 0.83 14.8 0.64 1.30 16.19
PHFC 6.03 N 09/02/97 1.60 18.8 0.25 0.73 6.50
PKPS 6.52 N 09/02/97 3.81 20.2 0.09 0.58 6.85
PRBC 4.97 N 09/02/97 0.30 15.9 0.27 0.68 5.98
PSBK 11.84 N 09/02/97 0.84 14.7 0.56 0.97 11.59
PTRS 9.48 N 09/02/97 0.50 9.2 0.65 1.06 11.83
PULS 13.51 N 09/02/97 0.57 11.8 0.45 1.10 13.79
PVFC 19.93 N 09/02/97 0.90 12.7 0.40 1.24 17.94
PVSA 14.91 N 09/02/97 0.27 12.0 0.62 1.07 14.75
PWBC 8.86 N 09/02/97 0.65 14.6 0.27 0.71 9.02
QCBC 6.72 N 09/02/97 1.31 17.7 0.30 0.70 7.87
QCFB 8.76 N 09/02/97 0.27 14.4 0.45 1.55 8.53
RARB 13.25 N 09/02/97 0.29 16.2 0.37 0.99 12.53
REDF 8.06 N 09/02/97 2.19 13.3 0.33 1.06 12.65
RELY 10.51 N 09/02/97 0.77 16.4 0.48 0.90 11.10
ROSE 14.28 N 09/02/97 0.45 15.3 0.44 0.88 14.63
RVSB 10.89 N 09/02/97 0.14 22.5 0.30 1.29 11.49
SFED 6.18 N 09/02/97 0.68 20.9 0.23 0.63 5.07
SFFC 7.36 N 09/02/97 NA 12.8 0.43 1.55 8.78
SFIN 9.33 N 09/02/97 0.38 14.2 0.33 0.82 8.78
SFSB 8.52 N 09/02/97 0.48 16.0 0.43 0.55 8.49
SFSL 14.39 N 09/02/97 0.28 18.5 0.26 1.35 14.52
SISB 18.99 N 09/02/97 0.43 14.3 0.52 0.83 11.63
SKAN 10.07 N 09/02/97 1.46 12.5 0.46 0.72 10.38
SMBC 6.29 N 09/02/97 1.10 17.0 0.25 0.96 6.06
SOPN 6.96 N 09/02/97 0.08 16.1 0.32 1.80 7.60
SOSA 13.61 N 09/02/97 6.28 9.9 0.10 1.33 21.58
SPBC 11.66 N 09/02/97 0.21 16.3 0.36 1.11 12.61
SSM 4.84 N 09/02/97 - 38.0 0.14 0.98 2.77
STFR 8.11 N 09/02/97 0.16 15.1 0.57 0.79 9.57
STSA 7.84 N 09/02/97 0.61 18.6 0.25 0.49 8.97
SWBI 9.54 N 09/02/97 0.30 14.5 0.35 1.02 9.50
SWCB 12.17 N 09/02/97 0.81 14.2 0.57 0.91 11.42
TBK 11.78 N 09/02/97 2.13 14.7 0.30 0.83 11.73
THR 5.71 N 09/02/97 1.21 18.5 0.22 0.77 5.49
THRD 6.42 N 09/02/97 0.33 16.9 0.29 0.73 6.60
TPNZ 5.63 N 09/02/97 1.28 24.0 0.18 0.84 4.85
TRIC 6.79 N 09/02/97 - 14.6 0.39 1.08 7.09
TSH 6.97 N 09/02/97 0.27 16.5 0.28 0.93 6.88
TWIN 5.88 N 09/02/97 0.08 16.7 0.30 0.91 7.08
UBMT 5.99 N 09/02/97 NA 19.1 0.31 1.41 6.14
VABF 6.82 N 09/02/97 0.68 20.8 0.17 0.54 7.98
WAMU 12.58 N 09/02/97 0.81 16.9 0.93 0.98 18.47
WBST 13.33 N 09/02/97 0.85 14.4 0.96 0.82 16.31
WCBI 9.13 N 09/02/97 0.60 16.2 0.41 1.43 9.40
WEFC 7.56 N 09/02/97 0.21 14.7 0.28 1.06 7.44
WFI 12.23 N 09/02/97 0.29 12.0 0.34 0.86 12.00
WFSL 15.84 N 09/02/97 0.73 12.2 0.56 1.87 15.71
WRNB 18.86 N 09/02/97 1.08 10.9 0.41 1.85 18.09
WSB 8.66 N 09/02/97 NA 17.2 0.10 0.72 8.67
17
Source: SNL & F&C calculations
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
WSFS 23.57 N 09/02/97 1.66 11.5 0.33 1.12 21.27
WSTR 6.48 N 09/02/97 0.17 15.3 0.35 0.83 7.53
WVFC 10.73 N 09/02/97 0.30 13.5 0.50 1.21 10.88
WWFC 8.78 N 09/02/97 - 16.4 0.37 0.88 9.45
WYNE 6.16 N 09/02/97 0.91 22.3 0.27 0.83 6.02
YFCB 6.81 N 09/02/97 0.57 16.3 0.27 1.13 7.48
YFED 9.46 N 09/02/97 1.24 17.8 0.34 0.84 9.96
Maximum 53.13 6.28 108.3 1.70 13.21 58.78
Minimum 4.03 - - (0.23) (0.30) (4.20)
Average 10.09 0.68 16.4 0.40 1.05 10.59
Median 8.92 0.46 15.3 0.34 0.96 9.57
18
Source: SNL & F&C calculations
EXHIBIT VI
FERGUSON & COMPANY
- ------------------
Exhibit VI - Comparative Group Selection
To search for a comparative group for Newport, we selected all thrifts from the
entire U.S. with assets under $100 million that have sufficient trading volume
to produce meaningful market information. All of these thrifts are listed on
either AMEX, NYSE, or Nasdaq.
We found 57 thrifts in the asset size described above. We eliminated 45 and
retained a group of 12. Normally, we consider 10 to 12 to be the desired sample
size.
We eliminated thrifts for the following reasons: 1) Mutual holding company; 2)
No PE for last 12 months; 3) Merger agreement has been executed; 4) Tangible
equity more than 20% of assets; 5) Loans less than 50% of deposits; 6) Loans
over 100% of deposits; 7) Non-performing assets more than 1% of assets; and 8)
Loans serviced more than 40% of total assets. After eliminating thrifts for the
above reasons, there were 14 left. We then eliminated the two with the most
assets to reduce our group to 12.
The group of 57 from which the comparative group was selected is listed on
Exhibit VI.1 and the selected comparative group is listed on Exhibit VI.2. On
Exhibit VI.1, we have blocked the cells that indicate which ones were not
selected and why. Set forth below is a legend for the column summarizing reasons
individual thrifts were not selected.
A Mutual holding company.
B Has not reported as a stock for a full year.
C One of the two remaining with the most assets.
D Tangible equity more than 20% of assets.
E Merger agreement has been executed.
F 1% or more of assets are non-performing.
G Loans less than 50% of deposits.
H Loans more than 100% of deposits.
I Loans serviced exceeds 40% of assets.
1
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 24.250
- --------
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 15.000
- --------
ATSB AmTrust Capital Corp. Peru IN MW SAIF NASDAQ 03/28/95 12.625
- --------
CBES CBES Bancorp Inc. Excelsior Springs MO MW SAIF NASDAQ 09/30/96 17.875
- --------
CENB Century Bancorp Inc. Thomasville NC SE SAIF NASDAQ 12/23/96 79.000
- --------
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 15.000
- --------
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 20.000
- --------
CNSB CNS Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 06/12/96 17.125
- --------
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 14.125
- --------
CSBF CSB Financial Group Inc. Centralia IL MW SAIF NASDAQ 10/09/95 12.500
- --------
FCB Falmouth Co-Operative Bank Falmouth MA NE BIF AMSE 03/28/96 17.000
- --------
FFBI First Financial Bancorp Inc. Belvidere IL MW SAIF NASDAQ 10/04/93 18.250
- --------
FFDF FFD Financial Corp. Dover OH MW SAIF NASDAQ 04/03/96 15.500
- --------
FLKY First Lancaster Bancshares Lancaster KY MW SAIF NASDAQ 07/01/96 15.250
- --------
FTNB Fulton Bancorp Inc. Fulton MO MW SAIF NASDAQ 10/18/96 20.000
- --------
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 10.500
- --------
GFSB GFS Bancorp Inc. Grinnell IA MW SAIF NASDAQ 01/06/94 13.375
- --------
GOSB GSB Financial Corp. Goshen NY MA BIF NASDAQ 07/09/97 14.656
- --------
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 19.000
- --------
GWBC Gateway Bancorp Inc. Catlettsburg KY MW SAIF NASDAQ 01/18/95 17.625
- --------
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ 02/08/95 21.000
- --------
HCFC Home City Financial Corp. Springfield OH MW SAIF NASDAQ 12/30/96 15.125
- --------
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 11.750
- --------
HWEN Home Financial Bancorp Spencer IN MW SAIF NASDAQ 07/02/96 15.125
- --------
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 18.875
- --------
INCB Indiana Community Bank SB Lebanon IN MW SAIF NASDAQ 12/15/94 15.250
- --------
JOAC Joachim Bancorp Inc. De Soto MO MW SAIF NASDAQ 12/28/95 15.000
- --------
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 12.625
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 14.000
- --------
LONF London Financial Corporation London OH MW SAIF NASDAQ 04/01/96 15.250
- --------
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 16.625
- --------
MBSP Mitchell Bancorp Inc. Spruce Pine NC SE SAIF NASDAQ 07/12/96 16.750
- --------
MCBN Mid-Coast Bancorp Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 25.000
- --------
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 15.625
- --------
MONT Montgomery Financial Corp. Crawfordsville IN MW SAIF NASDAQ 07/01/97 11.750
- --------
MRKF Market Financial Corp. Mount Healthy OH MW SAIF NASDAQ 03/27/97 14.125
- --------
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 15.000
- --------
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95 18.500
- --------
NTMG Nutmeg Federal S&LA Danbury CT NE SAIF NASDAQ NA 11.000
- --------
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 15.750
- --------
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 20.500
- --------
PFFC Peoples Financial Corp. Massillon OH MW SAIF NASDAQ 09/13/96 17.250
- --------
PSFC Peoples-Sidney Financial Corp. Sidney OH MW SAIF NASDAQ 04/28/97 16.500
- --------
PSFI PS Financial Inc. Chicago IL MW SAIF NASDAQ 11/27/96 14.625
- --------
PWBK Pennwood Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96 15.500
- --------
RELI Reliance Bancshares Inc. Milwaukee WI MW SAIF NASDAQ 04/19/96 8.500
- --------
SCBS Southern Community Bancshares Cullman AL SE SAIF NASDAQ 12/23/96 15.500
- --------
SCCB S. Carolina Community Bancshrs Winnsboro SC SE SAIF NASDAQ 07/07/94 21.063
- --------
SFFC StateFed Financial Corporation Des Moines IA MW SAIF NASDAQ 01/05/94 21.500
- --------
SFNB Security First Network Bank Atlanta GA SE SAIF NASDAQ NA 11.625
- --------
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 16.250
- --------
SSB Scotland Bancorp Inc Laurinburg NC SE SAIF AMSE 04/01/96 17.000
- --------
SZB SouthFirst Bancshares Inc. Sylacauga AL SE SAIF AMSE 02/14/95 16.375
- --------
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 16.250
- --------
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 22.750
- --------
USAB USABancshares, Inc. Philadelphia PA MA BIF NASDAQ NA 8.250
- --------------------------------------------
WCFB Webster City Federal SB (MHC) Webster City IA MW SAIF NASDAQ 08/15/94 16.500
- --------------------------------------------
Maximum 79.000
Minimum 8.250
Average 17.171
Median 15.625
2
Source: SNL & F&C calculations
FERGUSON & COMPANY Exhibit VI.1 - Comparatives Selection
- ------------------
Current Price/ Price/ Current Current Current Total Equity/
Market LTM Core Price/ Price/ T Price/ Dividend Assets Assets
Value Core EPS EPS Book V Book V Assets Yield ($000) (%)
Ticker ($M) (x) (x) (%) (%) (%) (%) MRQ MRQ
ALBC 6.38 25.80 13.47 102.67 102.67 9.14 1.32 66,316 8.90
- -------
AMFC 14.46 22.06 22.06 102.60 102.60 15.35 1.60 94,179 14.96
- -------
ATSB 6.65 46.76 28.69 92.02 93.04 9.36 1.58 71,031 10.17
- -------
CBES 18.32 NA 18.62 104.65 104.65 19.24 2.24 95,219 18.39
- ------- -------
CENB 32.18 NA 16.74 107.56 107.56 32.20 2.53 99,948 29.94
- ------- -------
CIBI 13.94 15.15 13.89 126.90 126.90 14.61 2.13 97,446 11.52
- -------
CKFB 18.51 22.22 20.00 117.86 117.86 30.43 2.50 60,812 23.96
- -------
CNSB 28.31 NA 28.54 116.26 116.26 28.86 1.17 98,104 24.81
- ------- -------
CRZY 13.49 20.18 17.66 96.22 96.22 24.85 2.83 54,275 25.82
- -------
CSBF 11.77 39.06 52.08 97.81 103.73 24.53 - 47,996 25.07
- -------
FCB 24.73 34.00 38.64 110.39 110.39 26.36 1.18 93,838 23.88
- -------
FFBI 7.58 20.51 21.73 103.58 103.58 8.96 - 84,531 8.65
- -------
FFDF 22.55 NA 24.22 106.82 106.82 26.44 1.94 85,286 24.74
- ------- -------
FLKY 14.62 NA 23.83 105.61 105.61 36.15 3.28 40,448 34.24
- ------- -------
FTNB 34.39 NA 35.71 138.22 138.22 34.57 1.00 99,464 25.01
- ------- -------
FTSB 15.70 21.00 11.41 100.96 100.96 16.19 2.38 96,940 16.04
- -------
GFSB 13.21 12.86 11.94 129.48 129.48 14.99 1.94 88,154 11.57
- -------
GOSB 32.95 NA NA NA NA NA - 95,617 12.68
- ------- -------
GUPB 15.28 22.62 22.62 112.56 112.56 18.35 2.11 86,911 16.30
- ------- -------
GWBC 18.96 NA 31.47 109.81 109.81 29.71 2.27 63,828 27.04
- ------- -------
HBBI 6.54 26.25 18.75 104.17 104.17 14.52 1.43 45,064 12.81
- ------- -------
HCFC 14.40 NA 18.01 94.24 94.24 21.11 2.12 68,235 20.61
- ------- -------
HHFC 10.75 23.50 16.32 105.76 105.76 13.22 3.40 83,103 12.50
- ------- -------
HWEN 7.10 NA 25.21 100.03 100.03 18.63 1.32 39,443 18.63
- ------- -------
HZFS 8.03 17.48 22.47 95.47 95.47 9.34 1.70 85,969 9.79
- -------
INCB 14.06 31.77 25.42 124.29 124.29 15.40 2.36 91,329 12.39
- ------- -----------
JOAC 10.84 38.46 53.57 110.38 110.38 31.99 3.33 35,656 28.98
- -------
KYF 16.65 18.30 15.78 116.25 116.25 18.73 3.96 88,923 16.11
LOGN 17.65 14.89 14.58 110.58 110.58 21.22 2.86 83,152 19.19
- -------
LONF 7.78 NA 22.43 104.24 104.24 20.71 1.57 37,937 19.87
- ------- -------
LXMO 18.93 21.88 18.89 112.86 112.86 31.95 1.81 59,236 28.32
- -------
MBSP 15.59 NA 27.92 108.84 108.84 47.20 - 33,038 43.36
- ------- -------
MCBN 5.81 14.97 12.76 113.12 113.12 9.73 2.08 59,739 8.60
- -------
MIVI 12.79 17.96 15.02 97.11 97.11 18.33 1.02 69,775 18.88
- -------
MONT 19.42 NA NA NA NA NA - 93,627 9.83
- ------- -------
MRKF 18.87 NA 27.16 95.25 95.25 33.35 1.98 56,578 35.00
- ------- -------
MSBF 18.73 18.52 16.30 147.49 147.49 25.08 1.87 74,698 16.99
- -------
NSLB 13.09 30.83 24.34 112.05 112.05 21.92 2.70 59,711 19.56
- -------
NTMG 7.98 32.35 25.00 149.66 149.66 8.52 - 93,645 6.17
- -------
NWEQ 13.21 14.72 12.30 110.68 110.68 13.63 3.30 96,891 11.45
- -------
PCBC 16.97 15.77 16.53 113.51 113.51 20.79 1.95 79,714 18.32
- -------
PFFC 25.28 NA 30.80 106.61 106.61 28.68 2.90 89,687 26.90
- ------- -------
PSFC 29.46 NA NA NA NA NA 1.21 93,734 10.15
- ------- -------
PSFI 31.91 NA 17.41 99.76 99.76 38.61 2.19 82,662 38.69
- ------- -------
PWBK 9.46 NA 17.61 101.31 101.31 19.73 2.07 47,929 19.47
- ------- -------
RELI 21.49 NA 30.36 95.61 95.61 45.90 - 46,836 47.98
- ------- -------
SCBS 17.63 NA 18.45 117.51 117.51 25.05 1.94 70,370 21.32
- ------- -------
SCCB 14.83 30.09 29.25 123.10 123.10 31.96 2.85 46,412 25.96
- -------
SFFC 16.85 14.83 12.50 110.60 110.60 19.67 1.86 85,679 17.78
- -------
SFNB 100.21 NM NM 306.73 311.66 123.15 - 79,581 42.48
- ------- -------
SOBI 12.34 28.51 22.57 92.75 92.75 15.61 1.72 79,080 15.40
- -------
SSB 32.53 24.29 28.33 126.39 126.39 46.82 1.77 69,479 37.03
- -------
SZB 13.88 96.32 31.49 103.51 103.51 14.47 3.05 92,910 13.98
- -------
THR 13.38 17.47 18.47 106.70 107.12 14.68 2.46 91,165 13.76
- -------
TRIC 13.85 16.49 14.58 101.07 101.07 15.48 2.64 89,457 15.32
- ------- -----------
USAB 6.06 39.29 34.38 132.42 135.91 15.19 - 39,301 12.62
- -------
WCFB 34.65 NA 25.78 156.55 156.55 36.59 4.85 94,699 23.35
- ------- -------
Maximum 100.21 96.32 53.57 306.73 311.66 123.15 4.85 99,948 47.98
Minimum 5.81 12.86 11.41 92.02 92.75 8.52 - 33,038 6.17
Average 18.12 25.92 22.91 114.60 114.90 24.58 1.86 74,645 20.41
Median 14.83 22.06 22.06 108.20 108.20 20.75 1.94 82,662 18.63
3
Source: SNL & F&C calculations
FERGUSON & COMPANY Exhibit VI.1 - Comparatives Selection
- ------------------
Tangible ROAA ROAA ROACE ROACE
Equity/ Core Core Before Before Before Before NPAs/
T Assets EPS EPS Extra Extra Extra Extra Merger Current Assets
(%) ($) ($) (%) (%) (%) (%) Target? Pricing (%)
Ticker MRQ LTM MRQ LTM MRQ LTM MRQ (Y/N) Date MRQ
ALBC 8.90 0.94 0.45 0.09 0.69 0.93 7.68 N 08/15/97 0.60
- -------
AMFC 14.96 0.68 0.17 0.73 1.04 4.14 6.68 N 08/15/97 0.81
- ------- ---------
ATSB 10.07 0.27 0.11 0.29 0.42 2.91 4.16 N 08/15/97 2.84
- ------- ---------
CBES 18.39 NA 0.24 0.77 1.10 NA 5.90 N 08/15/97 0.77
- -------------------
CENB 29.94 NA 1.18 NA 1.80 NA 9.12 N 08/15/97 0.39
- -------------------
CIBI 11.52 0.99 0.27 0.67 1.01 5.53 8.86 N 08/15/97 0.72
- -------------------
CKFB 23.96 0.90 0.25 1.80 3.28 7.25 13.77 N 08/15/97 0.63
- -------------------
CNSB 24.81 NA 0.15 0.54 0.94 NA 3.81 N 08/15/97 0.45
- -------------------
CRZY 25.82 0.70 0.20 1.06 1.31 3.69 4.92 N 08/15/97 0.39
- -------------------
CSBF 23.98 0.32 0.06 0.44 0.48 1.62 1.90 N 08/15/97 0.73
- -------------------
FCB 23.88 0.50 0.11 0.83 0.75 3.41 3.09 N 08/15/97 0.07
- -------------------
FFBI 8.65 0.89 0.21 (0.35) (0.76) (4.40) (9.28) N 08/15/97 0.39
- -------------------
FFDF 24.74 NA 0.16 0.77 0.90 3.22 3.61 N 08/15/97 -
- -------------------
FLKY 34.24 NA 0.16 1.15 1.48 3.52 4.15 N 08/15/97 0.45
- -------------------
FTNB 25.01 NA 0.14 NA 0.91 NA 3.65 N 08/15/97 0.81
- -------------------
FTSB 16.04 0.50 0.23 0.54 1.38 2.99 8.60 N 08/15/97 NA
- ------- ---------
GFSB 11.57 1.04 0.28 0.98 1.27 8.41 11.06 N 08/15/97 1.54
- ------- ---------
GOSB 12.68 NA NA NA 0.43 NA NA N 08/15/97 NA
- -------
GUPB 16.30 0.84 0.21 0.74 0.81 3.86 4.76 N 08/15/97 0.18
- ------------------- -------
GWBC 27.04 NA 0.14 0.80 0.96 3.11 3.60 Y 08/15/97 0.76
- ------------------- -------
HBBI 12.81 0.80 0.28 0.20 0.77 1.59 6.09 N 08/15/97 0.38
- -------------------
HCFC 20.61 NA 0.21 NA 1.04 NA 5.08 N 08/15/97 0.62
- -------------------
HHFC 12.50 0.50 0.18 0.27 0.78 1.89 6.27 N 08/15/97 0.15
- -------
HWEN 18.63 NA 0.15 0.57 0.81 NA 4.16 N 08/15/97 NA
- -------
HZFS 9.79 1.08 0.21 0.35 0.48 3.31 4.71 N 08/15/97 NA
- -------
INCB 12.39 0.48 0.15 0.17 0.60 1.29 4.77 N 08/15/97 NA
- -------------------
JOAC 28.98 0.39 0.07 0.51 0.63 1.74 2.13 N 08/15/97 0.68
- -------------------
KYF 16.11 0.69 0.20 0.80 1.17 3.95 7.02 N 08/15/97 -
LOGN 19.19 0.94 0.24 1.18 1.49 5.74 7.68 N 08/15/97 0.61
- -------
LONF 19.87 NA 0.17 0.74 0.86 3.51 4.17 N 08/15/97 0.79
- -------------------
LXMO 28.32 0.76 0.22 1.02 1.52 3.45 5.43 N 08/15/97 0.48
- -------------------
MBSP 43.36 NA 0.15 1.37 1.60 3.21 3.73 N 08/15/97 2.03
- -------------------
MCBN 8.60 1.67 0.49 0.43 0.76 4.89 8.85 N 08/15/97 0.73
- -------
MIVI 18.88 0.87 0.26 0.70 1.19 3.93 6.92 N 08/15/97 0.28
- -------
MONT 9.83 NA NA 0.31 0.62 NA NA N 08/15/97 0.91
- -------------------
MRKF 35.00 NA 0.13 NA 1.15 NA 3.30 N 08/15/97 -
- -------------------
MSBF 16.99 0.81 0.23 1.20 1.50 6.45 8.84 N 08/15/97 0.06
- -------
NSLB 19.56 0.60 0.19 0.49 0.94 2.39 4.78 N 08/15/97 0.02
- ------- ---------
NTMG 6.17 0.34 0.11 0.31 0.68 4.73 11.41 N 08/15/97 1.11
- ------- ---------
NWEQ 11.45 1.07 0.32 0.78 1.06 6.50 9.33 N 08/15/97 1.25
- ------- ---------
PCBC 18.32 1.30 0.31 0.78 1.18 4.14 6.34 N 08/15/97 0.05
- -------------------
PFFC 26.90 NA 0.14 0.48 0.88 NA 3.23 N 08/15/97 0.01
- -------------------
PSFC 10.15 NA NA NA 0.90 NA NA N 08/15/97 0.70
- -------------------
PSFI 38.69 NA 0.21 NA 2.09 NA 5.20 N 08/15/97 0.79
- -------------------
PWBK 19.47 NA 0.22 0.61 1.02 NA 5.15 N 08/15/97 0.83
- -------------------
RELI 47.98 NA 0.07 1.76 1.54 NA 3.14 N 08/15/97 -
- ------------------- ---------
SCBS 21.32 NA 0.21 0.55 1.20 NA 5.55 N 08/15/97 2.16
- ------------------- ---------
SCCB 25.96 0.70 0.18 0.82 1.05 3.01 4.04 N 08/15/97 1.78
- ------------------- ---------
SFFC 17.78 1.45 0.43 1.13 1.55 6.11 8.78 N 08/15/97 NA
- -------------------
SFNB 42.09 (4.48) (0.83) (27.53) (21.61) (71.40) (66.46) N 08/15/97 NA
- -------------------
SOBI 15.40 0.57 0.18 0.28 0.67 1.64 4.04 N 08/15/97 0.25
- -------------------
SSB 37.03 0.70 0.15 1.41 1.50 3.88 4.08 N 08/15/97 -
- -------------------
SZB 13.98 0.17 0.13 0.04 0.51 0.29 3.65 N 08/15/97 0.50
- ------- ---------
THR 13.71 0.93 0.22 0.57 0.80 3.91 5.68 N 08/15/97 1.21
- ------- ---------
TRIC 15.32 1.38 0.39 0.80 1.10 5.36 7.24 N 08/15/97 -
- -------
USAB 12.34 0.21 0.06 0.53 0.55 3.53 4.31 N 08/15/97 0.62
- -------------------
WCFB 23.35 NA 0.16 1.07 1.45 4.62 6.18 N 08/15/97 0.26
- -------------------
Maximum 47.98 1.67 1.18 1.80 3.28 8.41 13.77 2.84
Minimum 6.17 (4.48) (0.83) (27.53) (21.61) (71.40) (66.46) -
Average 20.37 0.63 0.20 0.13 0.64 1.76 4.16 0.64
Median 18.63 0.73 0.20 0.69 0.96 3.52 5.00 0.61
4
Source: SNL & F&C calculations
FERGUSON & COMPANY Exhibit VI.1 - Comparative Selection
- ------------------
Loans Loans
Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Deposits Assets Assets Assets For Others Assets
(%) (%) (%) (%) ($000) (%) Reasons for
Ticker MRQ MRQ MRQ MRQ MRQ MRQ Exclusion
----------------
-----------------
ALBC 96.00 72.82 75.86 13.98 10,947 16.51 Selected
- ------------------------- -----------------
AMFC 108.84 75.67 69.53 14.33 NA NA H
- ------------------------- --------------
ATSB 99.62 71.64 71.92 17.12 28,600 40.26 F, I
- ------------------------- --------------
CBES 120.99 90.20 74.55 5.25 30,779 32.32 B, H
- -------------------------
CENB 85.80 59.65 69.53 - - - B, D
- -------------------------
CIBI 103.55 76.52 73.90 13.99 NA NA H
- -------------------------
CKFB 131.25 91.11 69.42 5.32 - - D, H
- -------------------------
CNSB 84.97 63.45 74.68 - 21,613 22.03 B, D, H
- -----------
CRZY 97.48 51.47 52.80 20.41 78 0.14 D
- -----------
CSBF 77.10 57.40 74.45 - - - D
- -----------
FCB 72.70 54.43 74.87 0.81 435 0.46 D
- ----------- --------------
FFBI 79.68 64.59 81.07 9.11 70,537 83.45 I
- ----------- --------------
FFDF 97.24 62.33 64.10 10.06 - - B, D
- -------------------------
FLKY 159.08 86.38 54.30 10.34 - - B, D, H
- ------------------------- --------------
FTNB 127.14 85.77 67.46 6.54 88,991 89.47 B, D, H, I
- ------------------------- --------------
FTSB 124.04 90.05 72.60 9.95 - - H
- -------------------------
GFSB 131.52 87.02 66.16 21.53 19,961 22.64 F, H
- -------------------------
GOSB NA NA 86.28 - NA NA B
- ----------- -----------------
GUPB 82.01 52.16 63.61 18.93 - - Selected
- ------------------------- -----------------
GWBC 45.52 33.04 72.57 - - - B, D, E, G
- ------------------------- -----------------
HBBI 80.40 62.83 78.14 8.21 - - Selected
- ------------------------- -----------------
HCFC 108.24 78.99 72.98 5.87 2,351 3.45 B, D, H
- ------------------------- -----------------
HHFC 76.48 52.98 69.27 17.69 NA NA Selected
- ------------------------- -----------------
HWEN 136.75 83.14 60.80 20.28 - - B, H
- ------------------------- -----------------
HZFS NA NA 67.05 22.22 NA NA Selected
- ----------- -----------------
INCB 90.47 78.66 86.95 - 868 0.95 C
- -----------
JOAC 96.06 66.88 69.62 - - - D
- ----------- -----------------
KYF 90.20 55.35 61.36 21.45 - - Selected
-----------------
LOGN 98.87 71.82 72.64 5.41 - - Selected
- ----------- -----------------
LONF 99.44 76.82 77.26 2.11 - - B
- -------------------------
LXMO 107.94 76.69 71.05 - NA NA D, H
- -------------------------
MBSP 160.59 85.90 53.49 - - - B, D, H
- -------------------------
MCBN 117.77 83.57 70.96 19.99 NA NA H
- ------------------------- -----------------
MIVI 81.70 64.81 79.33 - - - Selected
- ------------------------- -----------------
MONT 115.47 89.62 77.61 11.14 - - B, H
- -------------------------
MRKF 72.14 45.80 63.48 - NA NA B, D
- ------------------------- --------------
MSBF 165.90 92.63 55.83 25.94 32,757 43.85 H, I
- ------------------------- -------------- -----------------
NSLB 75.61 55.74 73.72 5.02 - - Selected
- ------------------------- -------------- -----------------
NTMG 112.06 91.88 81.99 10.07 310,005 331.04 F, H, I
- ------------------------- --------------
NWEQ 124.23 81.05 65.24 22.59 25,279 26.09 F, H
- -------------------------
PCBC 19.97 15.58 78.03 3.14 - - G
- -------------------------
PFFC 74.65 53.79 72.06 - - - B, D
- -------------------------
PSFC 106.43 92.40 86.82 2.67 - - B, H
- -------------------------
PSFI 87.09 44.28 50.84 5.44 - - B, D
- -----------
PWBK 61.44 46.68 75.97 3.07 150 0.31 B
- -------------------------
RELI 151.52 58.38 38.53 12.81 - - B, D, H
- -------------------------
SCBS 75.43 58.98 78.19 - NA NA B, D, F
- -------------------------
SCCB 105.88 77.65 73.34 - - - D, F, H
- ------------------------- -----------------
SFFC NA NA 58.76 22.18 NA NA Selected
- ------------------------- -----------------
SFNB 14.03 6.82 48.59 1.41 NA NA B, D. G
- ------------------------- -----------------
SOBI 98.14 73.21 74.60 8.98 - - Selected
- ------------------------- -----------------
SSB 113.46 69.32 61.10 - - - D, H
- -------------------------
SZB 105.19 72.25 68.69 15.16 - - H
- -------------------------
THR 101.03 66.49 65.81 19.02 14,112 15.48 F, H
- -------------------------
TRIC 79.63 41.70 52.36 31.40 158 0.18 C
- ----------- -----------------
USAB 58.62 46.17 78.77 8.03 - - Selected
- ----------- -----------------
WCFB 76.73 57.85 75.40 0.29 - - A, B, D
- -----------
Maximum 165.90 92.63 86.95 31.40 310,005 331.04
Minimum 14.03 6.82 38.53 - - -
Average 97.48 66.71 69.41 8.93 14,296 15.84
Median 97.81 68.10 71.92 6.54 - -
5
Source: SNL & F&C calculations
FERGUSON & COMPANY Exhibit VI.2 - Comparatives Selected
- ------------------
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 24.250
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 19.000
HBBI Home Building Bancorp Washington IN MW SAIF NASDAQ 02/08/95 21.000
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 11.750
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 18.875
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 12.625
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 14.000
MIVI Mississippi View Holding Co. Little Falls MN MW SAIF NASDAQ 03/24/95 15.625
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95 18.500
SFFC StateFed Financial Corporation Des Moines IA MW SAIF NASDAQ 01/05/94 21.500
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 16.250
USAB USABancshares, Inc. Philadelphia PA MA BIF NASDAQ NA 8.250
Maximum 24.250
Minimum 8.250
Average 16.802
Median 17.375
6
Source: SNL & F&C calculations
Exhibit VI.2 - Comparatives Selected
FERGUSON & COMPANY
- ------------------
Current Price/ Price/ Current Current Current Total
Market LTM Core Price/ Price/ T Price/ Dividend Assets
Value Core EPS EPS Book V Book V Assets Yield ($000)
Ticker ($M) (x) (x) (%) (%) (%) (%) MRQ
ALBC 6.38 25.80 13.47 102.67 102.67 9.14 1.32 66,316
GUPB 15.28 22.62 22.62 112.56 112.56 18.35 2.11 86,911
HBBI 6.54 26.25 18.75 104.17 104.17 14.52 1.43 45,064
HHFC 10.75 23.50 16.32 105.76 105.76 13.22 3.40 83,103
HZFS 8.03 17.48 22.47 95.47 95.47 9.34 1.70 85,969
KYF 16.65 18.30 15.78 116.25 116.25 18.73 3.96 88,923
LOGN 17.65 14.89 14.58 110.58 110.58 21.22 2.86 83,152
MIVI 12.79 17.96 15.02 97.11 97.11 18.33 1.02 69,775
NSLB 13.09 30.83 24.34 112.05 112.05 21.92 2.70 59,711
SFFC 16.85 14.83 12.50 110.60 110.60 19.67 1.86 85,679
SOBI 12.34 28.51 22.57 92.75 92.75 15.61 1.72 79,080
USAB 6.06 39.29 34.38 132.42 135.91 15.19 - 39,301
Maximum 17.65 39.29 34.38 132.42 135.91 21.92 3.96 88,923
Minimum 6.06 14.83 12.50 92.75 92.75 9.14 - 39,301
Average 11.87 23.36 19.40 107.70 107.99 16.27 2.01 72,749
Median 12.57 23.06 17.54 108.17 108.17 16.97 1.79 81,092
7
Source: SNL & F&C calculations
Exhibit VI.2 - Comparatives Selected
FERGUSON & COMPANY
- ------------------
Tangible ROAA ROAA ROACE ROACE
Equity/ Equity/ Core Core Before Before Before Before
Assets T Assets EPS EPS Extra Extra Extra Extra Merger
(%) (%) ($) ($) (%) (%) (%) (%) Target?
Ticker MRQ MRQ LTM MRQ LTM MRQ LTM MRQ (Y/N)
ALBC 8.90 8.90 0.94 0.45 0.09 0.69 0.93 7.68 N
GUPB 16.30 16.30 0.84 0.21 0.74 0.81 3.86 4.76 N
HBBI 12.81 12.81 0.80 0.28 0.20 0.77 1.59 6.09 N
HHFC 12.50 12.50 0.50 0.18 0.27 0.78 1.89 6.27 N
HZFS 9.79 9.79 1.08 0.21 0.35 0.48 3.31 4.71 N
KYF 16.11 16.11 0.69 0.20 0.80 1.17 3.95 7.02 N
LOGN 19.19 19.19 0.94 0.24 1.18 1.49 5.74 7.68 N
MIVI 18.88 18.88 0.87 0.26 0.70 1.19 3.93 6.92 N
NSLB 19.56 19.56 0.60 0.19 0.49 0.94 2.39 4.78 N
SFFC 17.78 17.78 1.45 0.43 1.13 1.55 6.11 8.78 N
SOBI 15.40 15.40 0.57 0.18 0.28 0.67 1.64 4.04 N
USAB 12.62 12.34 0.21 0.06 0.53 0.55 3.53 4.31 N
Maximum 19.56 19.56 1.45 0.45 1.18 1.55 6.11 8.78
Minimum 8.90 8.90 0.21 0.06 0.09 0.48 0.93 4.04
Average 14.99 14.96 0.79 0.24 0.56 0.92 3.24 6.09
Median 15.76 15.76 0.82 0.21 0.51 0.80 3.42 6.18
8
Source: SNL & F&C calculations
FERGUSON & COMPANY Exhibit VI.2 - Comparatives Selected
- ------------------
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Current Assets Deposits Assets Assets Assets For Others Assets
Pricing (%) (%) (%) (%) (%) ($000) (%)
Ticker Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ
ALBC 08/15/97 0.60 96.00 72.82 75.86 13.98 10,947 16.51
GUPB 08/15/97 0.18 82.01 52.16 63.61 18.93 - -
HBBI 08/15/97 0.38 80.40 62.83 78.14 8.21 - -
HHFC 08/15/97 0.15 76.48 52.98 69.27 17.69 NA NA
HZFS 08/15/97 NA NA NA 67.05 22.22 NA NA
KYF 08/15/97 - 90.20 55.35 61.36 21.45 - -
LOGN 08/15/97 0.61 98.87 71.82 72.64 5.41 - -
MIVI 08/15/97 0.28 81.70 64.81 79.33 - - -
NSLB 08/15/97 0.02 75.61 55.74 73.72 5.02 - -
SFFC 08/15/97 NA NA NA 58.76 22.18 NA NA
SOBI 08/15/97 0.25 98.14 73.21 74.60 8.98 - -
USAB 08/15/97 0.62 58.62 46.17 78.77 8.03 - -
Maximum 0.62 98.87 73.21 79.33 22.22 10,947 16.51
Minimum - 58.62 46.17 58.76 - - -
Average 0.31 83.80 60.79 71.09 12.68 1,216 1.83
Median 0.27 81.86 59.29 73.18 11.48 - -
9
Source: SNL & F&C calculations
EXHIBIT VII
FERGUSON & COMPANY Exhibit VII
- ------------------ Pro Forma Assumptions
1. Net proceeds from the conversion were invested at the beginning of the period
at 5.65%, which was the approximate rate on the one-year treasury bill on June
30, 1997. This rate was selected because it is considered more representative of
the rate the Bank is likely to earn.
2. Newport's ESOP will acquire 8% of the conversion stock with loan proceeds
obtained from the Holding Company; therefore, there will be no interest expense.
We assumed that the ESOP expense is 10% annually of the initial purchase.
3. Newport'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 ESOP and RP are
deducted in accordance with generally accepted accounting principles.
6. Earnings per share ("EPS") calculations have ignored AICPA SOP 93-6.
Calculating EPS under SOP 93-6 and assuming 10% of the ESOP shares are committed
to be released and allocated to the individual accounts at the beginning of the
period would yield EPS of $.79, $.70, $.64, and $.59, and price to earnings
ratios of 12.7, 14.2, 15.6, and 17.0, at the minimum, midpoint, maximum, and
supermaximum of the range, respectively.
1
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Effect of Conversion Proceeds
At the Minimum of the Conversion Valuation Range
Valuation Date as of September 2, 1997
Newport Federal Savings Bank
- -----------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Value $ 2,380,000
Less: Estimated Expenses (400,000)
--------------------
Net Conversion Proceeds $ 1,980,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 1,980,000
Less: ESOP Contributions (190,400)
RP Contributions (95,200)
--------------------
Net Conversion Proceeds after ESOP & RP $ 1,694,400
Estimated Incremental Rate of Return(1) 3.62%
--------------------
Estimated Additional Income $ 61,270
Less: ESOP Expense (12,186)
RP Expense (12,186)
--------------------
$ 36,898
====================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
----------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
June 30, 1997 $ 137,000 $ 36,898 $ 173,898
b. Pro Forma Net Worth
June 30, 1997 $ 2,266,000 $ 1,694,400 $ 3,960,400
c. Pro Forma Net Assets
June 30, 1997 $ 34,379,000 $ 1,694,400 $ 36,073,400
(1) Assumes Proceeds can be reinvested at 5.65 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 September 2, 1997
Newport Federal Savings Bank
- --------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 2,800,000
Less: Estimated Expenses (400,000)
----------------------
Net Conversion Proceeds $ 2,400,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 2,400,000
Less: ESOP Contributions (224,000)
RP Contributions (112,000)
----------------------
Net Conversion Proceeds after ESOP & RP $ 2,064,000
Estimated Incremental Rate of Return(1) 3.62%
----------------------
Estimated Additional Income $ 74,634
Less: ESOP Expense (14,336)
RP Expense (14,336)
----------------------
$ 45,962
======================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
June 30, 1997 $ 137,000 $ 45,962 $ 182,962
b. Pro Forma Net Worth
June 30, 1997 $ 2,266,000 $ 2,064,000 $ 4,330,000
c. Pro Forma Net Assets
June 30, 1997 $ 34,379,000 $ 2,064,000 $ 36,443,000
(1) Assumes Proceeds can be reinvested at 5.65 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 September 2, 1997
Newport Federal Savings Bank
- --------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 3,220,000
Less: Estimated Expenses (400,000)
----------------------
Net Conversion Proceeds $ 2,820,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 2,820,000
Less: ESOP Contributions (257,600)
RP Contributions (128,800)
----------------------
Net Conversion Proceeds after ESOP & RP $ 2,433,600
Estimated Incremental Rate of Return(1) 3.62%
----------------------
Estimated Additional Income $ 87,999
Less: ESOP Expense (16,486)
RP Expense (16,486)
----------------------
$ 55,026
======================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
June 30, 1997 $ 137,000 $ 55,026 $ 192,026
b. Pro Forma Net Worth
June 30, 1997 $ 2,266,000 $ 2,433,600 $ 4,699,600
c. Pro Forma Net Assets
June 30, 1997 $ 34,379,000 $ 2,433,600 $ 36,812,600
(1) Assumes Proceeds can be reinvested at 5.65 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 September 2, 1997
Newport Federal Savings Bank
- --------------------------------------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation $ 3,703,000
Less: Estimated Expenses $ (400,000)
----------------------
Net Conversion Proceeds $ 3,303,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $ 3,303,000
Less: ESOP Contributions $ (296,240)
RP Contributions $ (148,120)
----------------------
Net Conversion Proceeds after ESOP & RP $ 2,858,640
Estimated Incremental Rate of Return(1) 3.62%
----------------------
Estimated Additional Income $ 103,368
Less: ESOP Expense $ (18,959)
RP Expense $ (18,959)
----------------------
$ 65,450
======================
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
-------------------------------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
June 30, 1997 $ 137,000 $ 65,450 $ 202,450
b. Pro Forma Net Worth
June 30, 1997 $ 2,266,000 $ 2,858,640 $ 5,124,640
c. Pro Forma Net Assets
June 30, 1997 $ 34,379,000 $ 2,858,640 $ 37,237,640
(1) Assumes Proceeds can be reinvested at 5.65 percent and earnings taxed at a
rate of 36.0 percent.
5
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Analysis Sheet
Name of Association: Newport Federal Savings Bank
Date of Market Prices: September 2, 1997 Arkansas 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 13.7
At Midpoint of Range 15.3 22.2 22.2 16.1 16.7 16.8 16.7
At Maximum of Range 16.8
At Supermax of Range 18.3
Price-Book Ratio P/B
- ----------------
At Minimum of Range 60.1%
At Midpoint of Range 64.7% 106.6 107.5 150.9 148.0 149.9 142.7
At Maximum of Range 68.5%
At Supermax of Range 72.3%
Price-Asset Ratio P/A
- -----------------
At Minimum of Range 6.6%
At Midpoint of Range 7.7% 15.9 16.8 17.9 19.2 15.3 14.3
At Maximum of Range 8.7%
At Supermax of Range 9.9%
Twelve Mo. Earnings Base Y $ 137,000
Period Ended June 30, 1997
Book Value B $ 2,266,000
As of June 30, 1997
Total Assets A $34,379,000
As of June 30, 1997
Return on Money (1) R 3.62%
Conversion Expense X $ 400,000
Underwriting Commission C 0.00%
Percentage Underwritten S 0.00%
Estimated Dividend
Dollar Amount DA $ -
Yield DY 0.00%
ESOP Contributions P $ 224,000
RP Contributions I $ 112,000
ESOP Annual Expense E $ 14,336
RP Annual Contributions M $ 14,336
Cost of ESOP Borrowings F 0.00%
(1) Assumes Proceeds can be reinvested at 5.65 percent and earnings taxed at a
rate of 36.0 percent.
6
FERGUSON & COMPANY
- ------------------
Exhibit VII
Pro Forma Analysis Sheet
Calculation of Estimated Value (V) at Midpoint Value
1. V= P/A(A-X-P-I) $ 2,800,000
-------------------------
1-P/A(1-(CxS))
2. V= P/B(B-X-P-I) $ 2,800,000
-------------------------
1-P/B(1-(CxX))
3. V= P/E(Y-R(X+P+I)-(E+M)) $ 2,800,000
-------------------------
1-P/E(R(1-(CxX))
Value
Estimated Value Per Share Total Shares Date
-------------------------- ------------- ----------------- -------------------------
$2,800,000 $10.00 280,000 September 2, 1997
Range of Value
$2.8 million x 1.15 = $3.22 million or 322,000 shares at $10.00 per share
$2.8 million x 0.85 = $2.38 million or 238,000 shares at $10.00 per share
7