National Capital Companies, LLC
Appraisal Update
of the Estimated Proforma
Fair Market Value
Prepared for
Hopkinsville Federal
Savings Bank
Hopkinsville, Kentucky
November 18, 1997
[LOGO OF NATIONAL
CAPITAL COMPANIES,
LLC APPEARS HERE]
Stephen Clinton
President
November 18, 1997
Board of Directors
Hopkinsville Federal Savings Bank
2700 Fort Campbell Boulevard
Hopkinsville, Kentucky 41192
Ladies and Gentlemen:
We have prepared an independent appraisal report update (the "November update")
of the estimated proforma fair market value of the to-be-issued common shares of
HopFed Bancorp, Inc. (the "Company"), which is the newly formed holding company
for Hopkinsville Federal Savings Bank ("Hopkinsville Federal" or the "Bank").
The common shares are to be issued in connection with the Bank's conversion from
a federally-chartered mutual savings bank to a federally-chartered stock savings
bank (the "Conversion"), where all of the common stock of the Bank will be
acquired by the Company in exchange for approximately 50% of the net conversion
proceeds. Our original report of the estimated proforma fair market value of
Hopkinsville Federal was dated May 29, 1997, (the "original valuation") and an
update (the "updated valuation") of the original valuation was prepared as of
August 29, 1997. This November update of our original valuation and updated
valuation considers changes in Hopkinsville Federal's financial condition and
operating performance as of September 30, 1997, as well as changes in the
overall stock market conditions and changes in the market for publicly-traded
thrift institutions as of November 18, 1997. The original valuation and the
updated valuation are incorporated herein by reference.
In preparing this November update, we performed an analysis of the Bank that
included interviews with the Bank's management, inquiries with the Bank's
independent accountants, York, Neel & Company, LLP, and its investment banker,
Investment Bank Services, Inc., and discussions with special legal counsel,
representatives of the firm of Kutak Rock.
We have analyzed, among other factors, the economic conditions in the Bank's
primary market area and have compared the Bank's financial performance and
condition with that of other savings institutions and with that of selected
publicly-traded savings institutions. We reviewed conditions in the securities
market in general and the market for savings institution securities,
specifically, and we analyzed the competitive environment within the Bank's
primary market area.
Our valuation is based upon the Bank's representations that the documents
provided to us and the information obtained through interviews with the Bank's
management, inquiries with the Bank's independent accountants, York, Neel &
Company, LLP, and its investment banker, Investment Bank Services, Inc., and
discussions with special legal counsel, representatives of the firm of Kutak
Rock as of November 18, 1997, are complete and accurate. In addition, we used
information from publicly-available published sources that we believe is
reliable. However, we have not examined or otherwise tested this
P.O. Box 147, Dover, Ohio 44622
(330) 364-3345 FAX (330) 364-3199
Board of Directors
November 18, 1997
Page 2
publicly-available information and therefore we cannot and do not express an
opinion as to the accuracy of this information.
This valuation considers the Bank as a going concern and should not be
considered an indication of the liquidation value of the Bank. We did not
independently value the assets or liabilities of the Bank nor did we
independently verify, and have relied on and assumed that, the allowance for
loan losses set forth in the balance sheet of Hopkinsville Federal at September
30, 1997, was adequate and complied fully with applicable law, regulatory policy
and sound banking practice as of the date of such financial statements.
Since August 29, 1997, the general market for common stocks has increased. The
Dow Jones Industrial Average has increased approximately .37% from the date of
our updated valuation to the date of this November update. The Standard and
Poors 500 index has increased approximately 4.31% over the same period. Thrift
market prices have increased since the date of our updated valuation. As
evidenced by the thrift stock market index calculated by SNL Securities, L.P.,
---------------------
the market values for all publicly traded thrift stocks have increased from
August 29, 1997, through November 18, 1997, by approximately 13.83%.
The average tangible price-to-book ("P/B") value of the thrift industry has
increased 7.76% from August 29, 1997, to November 18, 1997. This compares to an
increase in the average price-to-assets ("P/A") multiple for the industry of
7.36%. The price-to-earnings ("P/E") multiple for the thrift industry has
increased over the period from August 29, 1997, to November 18, 1997. The
average last twelve months ("LTM") P/E multiple, adjusted to exclude the SAIF
assessment where applicable, increased 10.23% from the date of our updated
appraisal to the date of this November update.
The Company completed its Subscription and Community Offering on November 18,
1997, and received subscriptions for shares as shown below:
Orders by Amount
Shares Values
Category 1: Eligible Account Holders 15,574,085 $155,740,850
Category 2: ESOP 280,370 2,803,700
Category 3: Supplemental Eligible Account Holders 280,442 2,804,420
Category 4: Other Eligible Member 197,965 1,979,650
Category 5: Local Community 45,225 452,250
Category 6: Other Community 192,300 1,923,000
------- ---------
TOTAL 16,570,387 $165,703,870
The Bank received 318 orders totaling the $250,000 maximum.
Board of Directors
November 18, 1997
Page 3
Orders by Number and Average Amount
Number Average Amount(1)
Category 1: Eligible Account Holders 2,569 $60,623
Category 2: ESOP 1 2,803,700
Category 3: Supplemental Eligible Account Holders 93 30,155
Category 4: Other Eligible Member 124 15,965
Category 5: Local Community 12 37,688
Category 6: Other Community 37 51,973
-- ------
TOTAL 2,836 $57,460
(1) Total average excludes the ESOP order.
Based on an analysis of the total orders received, it is estimated that
professional investors (those investors who do not reside in the Bank's market
area) were responsible for approximately 923 orders totaling $75.4 million,
which is 46.3% of the total amount of subscriptions. The major portion of those
professional orders were received from the eligible depositor category. Insider
subscriptions totaled $3,210,000, which includes the subscriptions placed by the
Bank's senior management and its Board of Directors.
Our estimate of the fair market value of the Company has been determined to be
$30,500,000, which is an increase of 15.09% from the midpoint value of
$26,500,000 determined in our updated valuation. The November valuation of the
Company results in a price-to-earnings ("P/E") multiple of 13.46x, a tangible
price-to-book ("P/B") multiple of 67.97%, and a price-to-assets ("P/A") multiple
of 13.37 for Hopkinsville Federal as of November 18, 1997.
Exhibit V-4 details the valuation discounts applied to the comparable group in
determining the value of Hopkinsville Federal as of November 18, 1997. The
discount from the comparable group P/B multiple average is 51.93%. The discount
in the P/E multiple average is 24.71% and the discount in the P/A multiple
average is 22.32%.
The valuation range in this November update will be from a minimum of
$25,925,000 to a maximum of $35,075,000 with a super maximum of $40,336,250. In
our opinion, the improvement in the conditions of the general stock market, the
results of the offering, Hopkinsville Federal's September 30, 1997, financials
and current market pricing for thrifts all warrant an increase in the valuation
of the to-be-issued common stock of HopFed Bancorp, Inc. to $30,500,000 as of
November 18, 1997.
Yours truly,
NATIONAL CAPITAL COMPANIES, LLC
/s/ Stephen Clinton
Stephen Clinton
President
National Capital Companies, LLC
LIST OF EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
I-1 Market Data - For Selected Publicly-Held Thrifts
I-1a Market Data - For Selected Publicly-Held Thrifts
I-1b Selected Financial and Market Statistics - Selected Publicly-Held
Thrifts Located in Kentucky
I-1c 1997 Announced Merger and Acquisition Activity for Kentucky
I-1d Recent Conversion Activity
II Index Values
III Selected Financial Data - Hopkinsville Federal Savings Bank
and the Comparables
IV-1 Selected Publicly-Traded Stock Detail
IV-2 Comparative Group - Selected Financial and Market Statistics
IV-2a Comparative Group - Selected Financial and Market Statistics
V-1 Standard Conversion Valuation Analysis
V-2 Proforma Effect of Standard Conversion
V-3 Proforma Effect of Standard Conversion
V-4 Proforma Effect of Standard Conversion
National Capital Companies, LLC
INTRODUCTION
- ------------
National Capital Companies, LLC ("National Capital") prepared an independent
appraisal for Hopkinsville Federal Savings Bank ("Hopkinsville Federal" or the
"Bank") dated May 29, 1997, to determine the estimated proforma fair market
value (the "original valuation") of the to-be-issued common stock pursuant to a
plan by which Hopkinsville Federal would convert from the mutual to the stock
form of organization.
The original valuation used financial information through the period ended March
31, 1997,, including the results of operations for the years ended December 31,
1992, 1993, 1994, 1995 and 1996. An updated valuation was prepared as of August
29, 1997, (the "updated valuation") incorporating the financial results of the
Bank through June 30, 1997. This valuation update (the "November update")
incorporates the financial results of the Bank through September 30, 1997. Our
original valuation dated May 29, 1997, and updated valuation dated August 29,
1997, are incorporated herein by reference.
Our updated valuation common stock prices for selected comparable
publicly-traded thrifts as of August 29, 1997, and this November update
incorporates the market performance of those companies and thrift stock pricing
multiples as of November 18, 1997. As in our updated valuation, our valuation
methodology will estimate the proforma fair market value of Hopkinsville Federal
under a scenario by which the Bank will conduct a standard stock conversion and
include the proforma income resulting from the net proceeds of the Offering.
STOCK MARKET PERFORMANCE
- ------------------------
Our updated valuation utilized the closing stock market prices as of August 29,
1997. Since August 29, 1997, the general market for common stocks has increased.
The Dow Jones Industrial Average has increased approximately .37% from the date
of our updated valuation to the date of this November update. The Standard and
Poors 500 index has increased approximately 4.31% over the same period.
Thrift market prices have increased since the date of our updated valuation. As
evidenced by the thrift stock market index calculated by SNL Securities, L.P.,
---------------------
the market values for all publicly-traded thrift stocks have increased from
August 29, 1997, through November 18, 1997, by approximately 13.83%.
The average tangible price-to-book ("P/B") value of the thrift industry has
increased 7.76% from August 29, 1997, to November 18, 1997. This compares to an
increase in the average price-to-assets ("P/A") multiple for the industry of
7.36%. The price-to-earnings ("P/E") multiple for the thrift industry has
increased over the period from August 29, 1997, to November 18, 1997. The
average last twelve months ("LTM") P/E multiple, adjusted to exclude the SAIF
assessment where applicable, increased 10.23% from the date of our updated
appraisal to the date of this November update.
A review of Exhibit I-1 which evaluates those thrifts with assets of less than
$500 million, shows that the market pricing multiples have increased less from
August 29, 1997, through November 18, 1997, for overcapitalized thrifts (those
with 10% and greater equity ratios) than for less capitalized thrifts. The
increase in the average P/B multiple for the overcapitalized group was only
10.21% for that period compared to 15.77% for those with capital ratios between
7% and 10%, and 33.62% for thrifts with less than a 7% capital ratio.
A review of Exhibit I-1a shows that the market pricing multiples have increased
less from August 29, 1997, through November 18, 1997, for Midwestern thrifts
than for the thrift industry in general. The increase in
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National Capital Companies, LLC
the average P/E multiple was 7.78% for that period for the Midwestern thrifts
compared to 10.33% for the district average.
The continued strong market for thrift stock is further evidenced by the
after-market pricing of thrifts which have completed conversions from the mutual
to stock form. In 1995, there were 71 completed conversions and 55 thrifts
completed conversions in 1996. Since June 30, 1997, there have been eight
standard conversions completed where data was available. The capital markets are
receptive to thrifts choosing the public form of ownership. The average increase
in stock price from their initial public offering price for those eight thrifts
that converted was 66.4% as of November 18, 1997, as shown in Exhibit I-1d. This
is significantly higher than the after-market results for 1995 and 1996
conversions. Most of these conversions were sold at the "super-max" which
further demonstrates the market receptiveness of conversions. The limited number
of conversions which have also been smaller in size than in prior years has
created a limited supply of conversion stock for the large number of investors
(including a myriad of mutual funds which focus on the thrift conversion sector
for their investment activities) who have profited from purchasing conversion
stock during their offerings or in the after-market. This supply-demand
imbalance has contributed to the strong after-issuance market performance of
recent conversions.
COMPARABLE GROUP MARKET PERFORMANCE UPDATE
- ------------------------------------------
A group of ten publicly-held savings institutions (the "comparables") was
selected for comparison purposes in our original valuation. The selection
process used to identify the comparables was designed to develop market pricing
applicable to Hopkinsville Federal to develop an estimate of the Bank's
estimated proforma fair market value. Our selection process limited the universe
of publicly-traded thrift stocks to those of less than $500 million in assets.
Our selection criteria sought comparables with historical profitability and
strong capital positions which operate in non-metropolitan markets. Our
selection process eliminated thrifts which were involved in announced mergers or
acquisitions that significantly impacted their market prices. The comparables
were re-evaluated for inclusion in this update and there did not appear to be
any reason to eliminate any of the companies.
Our original valuation included a financial analysis of the comparables through
March 31, 1997, and our updated valuation evaluated their financial results as
of June 30, 1997. Since September 30, 1997, financial information is now
available for the comparables, we have evaluated this updated financial
information compared to Hopkinsville Federal's September 30, 1997, financial
condition to consider the appropriateness of the market value adjustments used
in the original valuation. A detailed analysis of the Bank and the comparables
financial results for the quarter ended September 30, 1997, compared to June 30,
1997, is provided in Exhibits III-1 through Exhibits III-1j.
A summary of the comparable group and Hopkinsville Federal as of September 30,
1997, is provided below to evaluate the appropriateness of market value
adjustments including: level and stability of earnings, asset quality and credit
risk, taxation, dividend payments, management, market area, liquidity and
placement of the issue and prevailing stock market conditions.
Level and Stability of Earnings
- -------------------------------
The level and quality of Hopkinsville Federal's profitability is a function of
the amount and stability of the Bank's net interest margin, the level of
noninterest income, amount of operating expenses and income tax level.
Components impacting these variables include asset composition, asset-liability
structure, interest rate risk structure, management, staffing, operating
efficiency, actions of competitors and other factors.
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National Capital Companies, LLC
Hopkinsville Federal recorded a decrease in net income for the quarter ended
September 30, 1997, resulting primarily from a decline in the Bank's net yield
on interest-earning assets, an increase in non-interest expenses offset by a
higher level of non-interest income, lower loan loss provisions and a lower
income tax expense. The Bank's interest margin for the three months ended
September 30, 1997, was 2.21% compared to 2.34 for the quarter ended June 30,
1997.
Hopkinsville Federal has a conservative asset structure primarily composed of
one-to-four family mortgages and liquid investments with a portfolio yield below
that of the comparables. The Bank's cost of funds is higher than the
comparables. The result is that the Bank's net interest margin is lower than the
comparables. For the quarter ended September 30, 1997,, the Bank recorded a
5.73% decrease in net interest income and the Bank's net interest margin remains
significantly lower than the comparables and the thrift industry in general.
The following schedule provides an analysis of the comparables' net interest
income for the quarters ended June 30, 1997, and September 30, 1997. As the
schedule shows, the comparables net interest income has not been as
significantly impacted in the quarter ended September 30, 1997, as Hopkinsville
Federal's net interest income ratio was for the quarter.
- ------------------------------------------------------------------------------------------------------
Net Interest Income Analysis
- ------------------------------------------------------------------------------------------------------
Quarter Ended Quarter Ended
Comparable June 30, 1997, Sept 30, 1997, % Change
Ameriana Bancorp 3.03% 3.02% -0.33%
First Bancshares, Inc. 3.35% 3.32% -0.90%
FFW Corporation 3.15% 3.19% 1.27%
Wood Bancorp, Inc. 4.11% 4.18% 1.70%
Industrial Bancorp, Inc. 4.02% 3.90% -2.99%
Landmark Bancshares, Inc. 3.08% 3.10% 0.65%
MBLA Financial Corp. 2.17% 2.11% -2.76%
MFB Corp. 3.15% 3.20% 1.59%
Milton Federal Financial Corp. 2.99% 2.80% -6.35%
Midwest Bancshares Inc. 2.83% 2.75% -2.83%
Average 3.19% 3.16% -0.97%
Hopkinsville Federal Savings Bank 2.34% 2.21% -5.56%
Source: SNL Securities, L.C. and Unaudited Bank Financial Statements
- ------------------------------------------------------------------------------------------------------
Hopkinsville Federal's noninterest income has made a similar contribution to
the Bank's profitability as that of the comparables. For the quarter ended
September 30, 1997,, noninterest income to average assets totaled .33%. This is
slightly higher than the .29% recorded for the quarter ended June 30, 1997. This
level of noninterest income is similar to the comparables' average of .40% for
the quarter ended September 30, 1997.
Hopkinsville Federal's ratio of operating expenses to assets increased 2.83% for
the quarter ended September 30, 1997. Operating expenses for the quarter ended
September 30, 1997, were 1.11% of assets compared to 1.08% for the quarter ended
June 30, 1997, (annualized). Hopkinsville continues to operate with a relatively
low operating expense ratio which provides the Bank additional profitability.
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National Capital Companies, LLC
The following schedule provides an analysis of Hopkinsville Federal's most
recent quarterly profit performance compared to the comparables.
===================================================================================================
Return on Average Assets Analysis
- ---------------------------------------------------------------------------------------------------
Quarter Ended Quarter Ended
Company June 30, 1997, Sept 30, 1997, % Change
Ameriana Bancorp 0.89% 1.01% 13.48%
First Bancshares, Inc. 1.02% 1.27% 24.51%
FFW Corporation 0.94% 1.04% 10.64%
Wood Bancorp, Inc. 1.44% 1.48% 2.78%
Industrial Bancorp, Inc. 1.51% 1.40% -7.28
Landmark Bancshares, Inc. 1.11% 1.04% -6.31
MBLA Financial Corp. 0.79% 0.89% 12.66%
MFB Corp. 0.84% 0.79% -5.95
Milton Federal Financial Corp. 0.74% 0.68% -8.11
Midwest Bancshares Inc. 0.81% 1.13% 39.51%
Average 1.01% 1.07% 6.34%
Hopkinsville Federal Savings Bank 1.01% 0.94% -6.93
- --------------------------------------------------------------------------------------------------
Source: SNL Securities, L.C.
In the quarter ended September 30, 1997, the Bank recorded a return on average
assets equal to approximately 87% of the comparable average. The Bank's
profitability declined 6.93% for the quarter while the comparables profitability
improved 6.34%.
The following schedule provides an analysis of the return on average equity for
the comparables for the quarter ended September 30, 1997, compared to the
quarter ended June 30, 1997. The schedule compares the actual return on average
equity recorded by the comparables to the proforma post-conversion results for
the Bank upon completion on the conversion.
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National Capital Companies, LLC
================================================================================================
Return on Average Equity Analysis
- ------------------------------------------------------------------------------------------------
Quarter Ended Quarter Ended
Company June 30, 1997, Sept 30, 1997,
Ameriana Bancorp 8.16% 9.07%
First Bancshares, Inc. 7.35% 9.48%
FFW Corporation 9.50% 10.77%
Wood Bancorp, Inc. 11.53% 11.98%
Industrial Bancorp, Inc. 8.43% 8.06%
Landmark Bancshares, Inc. 7.81% 7.46%
MBLA Financial Corp. 6.21% 7.13%
MFB Corp. 5.99% 5.89%
Milton Federal Financial Corp. 5.44% 5.29%
Midwest Bancshares Inc. 11.75% 16.37%
Average 8.22% 9.15%
Hopkinsville Federal Savings Bank ** 4.66% 4.66%
- ------------------------------------------------------------------------------------------------
* Adjusted to exclude the SAIF assessment
** Proforma - Please refer to the super-max in Exhibit V-3
Source: SNL Securities, L.C.
As shown, the Bank is anticipated to record a lower return on average equity
post-conversion than the comparables. The variance between the Bank and the
comparables has increased as the comparables profitability has increased from
the June quarter to the September quarter. The Bank, at the super-max, is
projected to have a net worth ratio of over 22.5%, which is significantly higher
than the comparables average of 12.3%. The high level of capitalization
projected for the Bank contributes to the lower level of proforma return on
average equity compared to the comparables. The Bank, due to the limited market
growth opportunities, may require some time to leverage its capital position to
bring its return on average equity to that of the comparables.
Based upon the foregoing, we continue to apply a discount to the comparables
market pricing related to level and stability of earnings. Accordingly, a
downward adjustment to the pricing multiples of the comparables is warranted to
reflect the Bank's lower proforma earnings prospects relative to the comparable
group, and our update will continue to apply a discount to the comparables
market pricing multiples.
Asset Quality and Credit Risk
- -----------------------------
As mentioned in our original valuation and updated valuation, we believe that
Hopkinsville Federal's asset quality is superior to the comparables. The
following provides an analysis of nonperforming assets for Hopkinsville Federal
and the comparables as of September 30, 1997:
Our analysis of Hopkinsville Federal related to asset quality and credit risk is
that the Bank's risk related to credit losses is lower than the comparable
group. Both the Bank and the comparables have experienced a slight increase in
their levels of nonperforming assets in the quarter ended September 30, 1997,
but their
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National Capital Companies, LLC
levels remain at acceptable levels. As a result we will continue to apply an
upward adjustment to the comparables market pricing multiples concerning asset
quality and credit risk.
Taxation
- --------
Our inquiries with the Bank's accountants and management did not disclose any
reason for a tax rate different than the comparables. Our expectation is that
the future tax rates for the comparables and Hopkinsville Federal will be
similar. The differences that exist among the comparables and Hopkinsville
Federal's are minimal. Hence, no adjustment in the Bank's estimated proforma
fair market value will be made for taxation.
Dividend Payments
- -----------------
Hopkinsville Federal has indicated that it intends to establish a policy of
paying dividends initially at an annual rate of 3% of the purchase price of the
stock beginning with the first full quarter following the conversion. The Bank
will consider such factors including capital requirements, financial
performance, tax considerations and general economic conditions in determining
future dividend adjustments.
Thrift stock historically has not traded on the basis of current or potential
dividend yields. However, the rise in industry profitability and the improved
level of capitalization has enabled many thrifts the ability to pay out modest
dividends. This trend is evident in the comparable group. All of the ten
selected members of the comparable group are paying regular dividends.
Because Hopkinsville Federal has stated that it will pay a dividend on the
common stock, no adjustment will be made to the proforma fair market value in
consideration of dividends, which was also the case in the original valuation.
Management
- ----------
Hopkinsville Federal's management has responded well in this era of uncertainty
and constant change related to the thrift industry. The Bank has remained
profitable, improved its net interest margin, held operating expenses under
control, increased its franchise value and maintained asset quality. The Bank
has also developed an alternative investment strategy of investments and
mortgage-backed securities to offset the lower level of loan production
available in the current market.
Hopkinsville Federal's management understands their deposit and lending markets,
responds well to competition and has initiated the organizational and structural
changes necessary to remain competitive, including the pursuit of a conversion.
The most important measure of management is their ability to earn a profit.
Management has done this consistently, due in part to the reasons mentioned
above. Based upon our analysis of the comparables, we believe that they also
possess quality management. The best indication of the comparables' management
capabilities is the consistent level of earnings recorded by the group. Based
upon this assessment, we believe that no market adjustment is necessary for the
quality of management.
Market Area
- -----------
As discussed in our original valuation, Hopkinsville Federal's primary deposit
area encompasses the southwestern area of Kentucky. The Bank's lending
activities are also concentrated in this same market. The local economy is
stable, however, the economic prospects for the Bank's primary market area are
lower than for the state of Kentucky and for the nation as a whole.
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National Capital Companies, LLC
As discussed in the original valuation, the markets of the comparable group were
chosen to reflect non-metropolitan areas. Upon specific consideration of
competitive factors and economic conditions between the comparables and
Hopkinsville Federal's market area, there does appear to be a difference between
the composite of the comparables and Hopkinsville Federal in the economic
conditions prevailing in the local markets. Therefore, a downward valuation
adjustment will be made regarding market area.
Liquidity and Placement of the Issue
- ------------------------------------
The Bank has received a high level of interest in its subscription offering.
There are several factors which have resulted in the large amount of orders
received.
. The Bank choose an unusually high individual maximum order level of
$250,000 which could be increased to $500,000 for joint accounts.
. Local financial institutions have made prime rate loans available to
subscribers up to 100% of the subscription amount which has increased
the "purchase power" of the Bank's subscribers. The Bank estimates that
these loans have totaled over $30 million.
. The Bank announced plans for the conversion in January 1997. Several
delays in undertaking the subscription offering has provided a longer
than typical time period for investors to evaluate and consider a
purchase of the Company's stock.
. A local investment banking firm, Hilliard Lyons, has actively promoted
the Bank's offering. They have reportedly encouraged their clients to
participate in the subscription offering, and have actively sought
retirement accounts needing a third party to accomplish the investment
of 401K and other self-directed retirement plans.
. The Bank's plan of conversion utilized a tier one depositor
qualification date of March 31, 1996. This date is more recent than the
date typically used in conversions, however, the Bank was unable to use
an older date due to data processing problems with older account
records.
. There appears to be a high number of "professional investors" who held
subscription rights and have placed orders.
. As previously mentioned, the limited number of conversions being
undertaken has created a supply-demand imbalance which has resulted in
thrift conversion investors heavily participating in the Bank's
subscription offering.
. The high level of interest in the Bank's subscription offering has
resulted in large orders being placed with the expectation that these
orders will be prorated and that by ordering a larger amount, investors
believed they were likely to receive a larger prorated order amount.
. Local thrift investors experienced a substantial return on their
investment in First Federal Savings Bank, a thrift located in
Hopkinsville which sold in 1993 to Liberty National Bank which
subsequently sold to Banc One in 1994. Through the mergers, First
Federal shareholders received a substantial gain on their original
investment. Local investors have indicated that they experienced a gain
of approximately eight times their original investment as a result of
the "double dip". These investors, and others who know about their
gains on their First Federal investment, recognize the potential exists
for similar returns through an investment in the Bank. Many investors
in the subscription offering expressed their reason for making an
investment was simply the hope in duplicating the financial success
experienced by investors in First Federal.
Accordingly, we do not believe that the high level of investor interest in the
Bank's offering is a major indication of the value of the Bank. We believe that
many investors have been influenced by the "hype" of the offering. We further
believe that the large amount of orders reflects the limited availability of new
conversion stock in the market. Professional investors have profited
substantially in the past by purchasing
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National Capital Companies, LLC
conversion issues, and today, they appear to be highly liquid and are capable of
causing most new conversions to be substantially oversubscribed.
Prevailing Stock Market Conditions
- ----------------------------------
The performance of stock prices for thrifts has been exceptional since late
1990, not unlike the conditions which have prevailed for common stock in
general. There are several factors for this unusually advantageous market
opportunity. The level of interest rates has made thrift issues attractive
because of the thrift profitability that current market conditions provide.
Second, the rise in the stock market in general has helped buoy thrift equity
including new conversion issues. Third, the strength of the savings and loan
business, after the resolution of the troubled institutions by the RTC, has
resulted in a high appreciation for the remaining industry and its profit
potential. Fourth, many previously converted thrift issues are being considered
potential takeover candidates as financial services participants rapidly pursue
intrastate and interstate financial service expansion opportunities. (Exhibit
I-1c provides information on 1997, thrift merger activity in Kentucky, which has
been moderate.)
New conversions continue to experience a high level of interest from
subscription rights holders as well as other investors. A vast majority of the
conversions receive orders in excess of the maximum valuation level. This is
favorable for three reasons. First, the expense is considerably less than if
underwritten issues were required to accomplish the conversion. Second, the
shares are usually bought in small blocks by friendly local investors (which may
reduce the potential for subsequent unfriendly takeovers). Third, the loyalty of
the local market for future retail savings deposit and lending activities should
strengthen. It is our opinion that no adjustment is warranted in our preparation
of an estimate of the proforma fair market value of the Company's common stock
related to prevailing stock market conditions.
Summary of Market Value Adjustments
- -----------------------------------
We concluded in our original valuation and the valuation update that
Hopkinsville Federal warranted a downward adjustment for level and stability of
earnings and market area and an upward adjustment for asset quality and credit
risk. Our analysis found that the Bank did not significantly differ in any of
the other market value adjustment criteria. It should be noted that Hopkinsville
Federal may have several other positive and negative factors, but in relation to
the comparable group these conditions are not materially different.
The preparation of this November update included a review of the market value
adjustments discussed above. Our assessment of the market factors is the same as
in our original valuation. We believe that the following market value
adjustments are appropriate upon the application of the comparables' market
pricing multiples for Hopkinsville Federal:
Page 8
National Capital Companies, LLC
------------------------------------------------------------
Summary of Market Value Adjustments
------------------------------------------------------------
Market Factor Adjustment
Level and Stability of Earnings Downward
Asset Quality and Credit Risk Upward
Taxation None
Dividend Payments None
Management None
Market Area Downward
Liquidity and Placement of the Issue None
Prevailing Stock Market Conditions None
------------------------------------------------------------
MARKET PERFORMANCE
- ------------------
The market valuation of total equity for the comparables increased 7.94% from
August 29, 1997, the market date for our updated valuation, to November 18,
1997, the date of this November update. As shown below, the performance of
individual companies varied widely. All of the comparables experienced an
increase in market value except one. The percentage change in the market value
for the comparables ranged from a decline of 3.27% to an increase of 40.65%. Of
particular interest was the dramatic increase in stock price of Midwest
Bancshares, Inc. Midwest's stock price was positively impacted by its strong
quarterly earnings as well as the announced sale of Valley Financial Corporation
which is also headquartered in Burlington, Iowa. Valley's shareholders are to
receive a cash price equal to approximately two time book. Since Midwest's stock
price has dramatically outperformed the other members of the peer group, our
focus was on median price changes rather than average price changes which
minimizes the "distortion" caused by Midwest's price change since August 29,
1997. The median change in the comparables market value of equity was 8.52%.
-----------------------------------------------------------------------------------------------------
Market Value of Equity
-----------------------------------------------------------------------------------------------------
Company November 18, 1997, August 29, 1997, % Change
Ameriana Bancorp $64.6 $63.8 1.25%
First Bancshares, Inc. 28.7 26.6 7.89%
FFW Corporation 25.0 20.8 20.19%
Wood Bancorp, Inc. 39.5 35.2 12.22%
Industrial Bancorp, Inc. 89.2 77.8 14.65%
Landmark Bancshares, Inc. 41.1 41.5 -0.96%
MBLA Financial Corp. 32.0 30.8 3.90%
MFB Corp. 38.4 39.7 -3.27%
Milton Federal Financial Corp. 34.6 31.7 9.15%
Midwest Bancshares Inc. 17.3 12.3 40.65%
Total 410.4 380.2 7.94%
Source: Quarterly Financial Statements, SNL Securities, L.P. and National Capital Calculations
Dollars shown in thousands
-----------------------------------------------------------------------------------------------------
Exhibit IV-2 details the P/E, P/B and P/A multiples of the comparables as of
November 18, 1997. The average percentage change of the market multiples from
August 29, 1997, is shown below. The comparable group recorded changes in their
P/E multiple ranging from -6.77% to 25.37%. The comparable P/E
Page 9
National Capital Companies, LLC
average was 17.86x as of November 18, 1997, compared to the average of 17.26x
adjusted to exclude the SAIF assessment as appropriate. This 3.5% increase
compares to a 10.23% increase in the average P/E multiple for all publicly-
traded thrifts.
The average P/B multiple for the comparable group increased 9.15% as compared to
a 7.76% increase in the average P/B multiple for all publicly-traded thrifts.
The median P/A multiple increased for the comparable group a total of 7.87%
while the average P/A multiple for all publicly-traded thrifts increased 7.36%
from August 29, 1997, to November 18, 1997. Additional information on these
multiples for the industry is provided in Exhibit I-1 and Exhibit I-1a.
In recognition of the general improvement in stock market conditions, the
enhanced market pricing of the comparables and the thrift industry in general,
the strong level of subscriptions received, as well as other factors, our
estimate of the fair market value of the Company has been increased from the
value estimate determined in our updated valuation.
------------------------------------------------------------------------------------------------------------
P/E Multiple *
------------------------------------------------------------------------------------------------------------
Company November 18, 1997, August 29, 1997, % Change
Ameriana Bancorp 17.68 17.75 -0.39%
First Bancshares, Inc. 15.44 15.30 0.92%
FFW Corporation 14.23 12.06 17.99%
Wood Bancorp, Inc. 18.44 17.80 3.60%
Industrial Bancorp, Inc. 17.08 17.59 -2.90%
Landmark Bancshares, Inc. 17.46 17.46 0.00%
MBLA Financial Corp. 18.84 18.16 3.74%
MFB Corp. 20.39 21.87 -6.77%
Milton Federal Financial Corp. 23.81 22.43 6.15%
Midwest Bancshares Inc. 15.27 12.18 25.37%
Average 17.86 17.26 3.50%
* Adjusted to exclude the SAIF assessment where applicable
Source: SNL Securities, L.P. and National Capital Calculations
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
P/B Multiples
------------------------------------------------------------------------------------------------------------
Company November 18, 1997, August 29, 1997, % Change
Ameriana Bancorp 146.87 146.51 0.25%
First Bancshares, Inc. 126.57 119.81 5.64%
FFW Corporation 156.53 134.61 16.28%
Wood Bancorp, Inc. 190.63 174.63 9.16%
Industrial Bancorp, Inc. 146.68 126.83 15.65%
Landmark Bancshares, Inc. 130.51 131.87 -1.03%
MBLA Financial Corp. 112.98 108.05 4.56%
MFB Corp. 114.48 117.21 -2.33%
Milton Federal Financial Corp. 121.85 112.15 8.65%
Midwest Bancshares Inc. 166.94 123.88 34.76%
Average 141.40 129.56 9.15%
Source: SNL Securities, L.P. and National Capital Calculations
-----------------------------------------------------------------------------------------------------------
Page 10
National Capital Companies, LLC
------------------------------------------------------------------------------------------------------------
P/A Multiple
------------------------------------------------------------------------------------------------------------
Company November 18, 1997, August 29, 1997, % Change
Ameriana Bancorp 16.44 16.04 2.49%
First Bancshares, Inc. 17.62 16.20 8.77%
FFW Corporation 13.79 11.55 19.39%
Wood Bancorp, Inc. 23.70 21.49 10.28%
Industrial Bancorp, Inc. 25.20 22.46 12.20%
Landmark Bancshares, Inc. 18.00 18.19 -1.04%
MBLA Financial Corp. 14.30 13.13 8.91%
MFB Corp. 15.00 16.00 -6.25%
Milton Federal Financial Corp. 16.47 15.89 3.65%
Midwest Bancshares Inc. 11.55 8.56 34.93%
Average 17.21 15.95 7.87%
Source: SNL Securities, L.P. and National Capital Calculations
------------------------------------------------------------------------------------------------------------
As detailed in our original valuation, we believe that the P/E method is the
most direct and appropriate method of determining Hopkinsville Federal's
estimated proforma fair market value of the to-be-issued common shares. Our
updated valuation used Hopkinsville Federal's trailing LTM earnings as of June
30, 1997, of $1.426 million adjusted to exclude the SAIF assessment to apply to
the market P/E multiple. The LTM earnings for the Bank as of September 30, 1997,
were approximately $1.591 million.
VALUATION METHODOLOGY
- ---------------------
The market pricing multiples of the comparable group members are presented in
Exhibit IV-2 and 2a. All three valuation methodologies (P/E, P/B, and P/A) used
in the updated valuation were updated based upon Hopkinsville Federal's
September 30, 1997, financial information and using the stock prices of
publicly-traded thrift institutions as of November 18, 1997.
The central valuation method will be the P/E method. Since Hopkinsville Federal
and all of the comparable group members have been consistently profitable, the
P/E method is the most direct and appropriate method of valuation. Investors
consider earnings an important factor for the determination of the value of a
newly converted thrift. Hopkinsville Federal's LTM earnings will provide the
basis for calculation of proforma values for the Bank. Hopkinsville Federal's
LTM earnings as of September 30, 1997, totaled approximately $1.591 million,
which is $170 thousand higher than the Bank's June 30, 1997, LTM earnings
adjusted to exclude the SAIF assessment.
The P/B and the P/A methods will be applied as secondary measures of
Hopkinsville Federal's estimated proforma fair market value. These methods are
more appropriately employed in situations where the P/E method would not be
appropriate. These methods have limitations caused by historical cost
accounting, goodwill and the inability to distinguish the affects these factors
have on the subject and comparable group.
P/E Multiple Calculation
- -------------------------
As indicated in Exhibit IV-2, the adjusted P/E market multiples for the
comparable group range from 14.23x to 23.81x. The average and median for the
comparables' P/E multiples are 17.88x and 17.66x, respectively. In order to
derive a multiple to apply to Hopkinsville Federal's LTM earnings, adjustments
to these multiples were made as detailed in the updated valuation. The proforma
P/E for our November updated estimate of value, $30,500,000 was 13.46x.
Page 11
National Capital Companies, LLC
P/B Multiple Calculation
- -------------------------
The P/B value method considers a company's financial condition, but does not as
readily evaluate the future operating results. Accordingly, this valuation
method is less meaningful than the P/E method. The P/B method must be
considered, however, because it is a method which many investors and analysts
use in evaluating the value of thrift common stock.
As indicated in Exhibit IV-2 the P/B market multiples for the comparable group
range from 112.98% to 190.63%. The comparables' average and median P/B multiples
are 141.40% and 138.60%, respectively. In order to derive a multiple to apply to
Hopkinsville Federal's net worth, adjustments to these multiples were made as
detailed in the updated valuation. Our November estimate of value of $30,500,000
results in a proforma P/B of 67.97% as shown in Exhibit V-3.
P/A Multiple Calculation
- ------------------------
The third method of valuation considered is the P/A method. This method is
generally the least desirable of the valuation methods considered. This method
fails to consider either the financial strength or the earnings capacity of a
financial institution. This method is generally reserved for circumstances where
core earnings are nonexistent or where a financial institution holds a minimal
level of capital.
As indicated in Table IV-2, the P/A market multiples for the comparables range
from 11.55% to 25.20%. The average and median comparables' P/A multiples are
17.21% and 16.46%, respectively. In order to derive a multiple to apply to
Hopkinsville Federal's assets, adjustments to these multiples were made as
detailed in the updated valuation. Our November estimate of value of $30,500,000
results in a proforma P/A of 13.37% as shown in Exhibit V-3.
VALUATION ANALYSIS
- ------------------
Based upon the analysis performed, our estimate of the fair market value of the
Company has been determined to be $30,500,000. This higher valuation takes into
consideration the general increase in stock market conditions since the updated
valuation was prepared, the high amount of orders received by the Bank in its
subscription offering and the general increase in thrift pricing since the
updated valuation was prepared, among other factors. Based upon the value
determined in our updated valuation of $26,500,000 as of August 29, 1997, this
indicates an increase in the value of the Company of 15.09% from August 29,
1997, to November 18, 1997.
This conclusion is based on the P/E method with secondary consideration of the
P/B and P/A calculations as included in Exhibits V-1 through V-4. As stated
previously, we believe that the P/E method is the most appropriate methodology
based upon the conditions and characteristics analyzed throughout this
valuation. Also included are proforma calculations for return on assets and
tangible net worth to assets.
Page 12
Exhibit I-1
Hopkinsville Federal Savings Bank
Hopkinsville, Kentucky
Market Data for Selected Publicly-Traded Thrift Institutions *
Selected Groups Excluding Mutual Holding Companies
As of November 18, 1997
------------------------------------------------------
Price to Price to Price to
Book LTM EPS ** Assets
(%) (x) (%)
------------------------------------------------------
Segment Description:
All Thrift - Medians 150.17 18.25 16.63
All Thrift - Averages 165.69 20.91 18.52
Thrifts with Assets greater than $500 million
Medians 189.28 17.42 15.40
Averages 201.14 20.03 16.11
Thrifts with Assets less than $500 million
Medians 131.20 18.88 18.00
Averages 143.39 21.53 20.06
Equity-to-Asset Groups*
Over 10%
Medians 127.43 20.05 20.66
Averages 136.14 22.85 22.69
From 7% to 10%
Medians 172.98 16.47 16.16
Averages 178.42 17.58 15.79
Under 7%
Medians 219.46 17.18 12.23
Averages 222.69 20.83 12.69
* Selected publicly traded companies include those with assets less than $500
million.
** Adjusted to exclude SAIF assessment where applicable
Source: SNL Securities, L.P. and National Capital calculations
Exhibit I-1a
Hopkinsville Federal Savings Bank
Hopkinsville, Kentucky
Market Data for Selected Publicly-Traded Thrift Institutions *
Excluding Mutual Holding Companies
Geographic Regional Averages
As of November 18, 1997
-------------------------------------------------------
Price to Price to Price to
Book LTM EPS ** Assets
(%) (x) (%)
-------------------------------------------------------
Mid-Atlantic 175.27 19.56 16.41
Midwestern 148.57 21.20 19.18
Northeastern 193.80 17.49 15.86
Southeastern 169.52 25.05 23.31
Southwestern 153.37 18.37 18.08
Western 180.96 22.04 16.16
District Average 170.25 20.62 18.17
* Selected publicly traded thrifts with assets less than $500 million.
** Reflects adjustment to exclude SAIF assessment where applicable.
Source: SNL Securities, L.P. and National Capital calculations
Exhibit I - 1b
SELECTED FINANCIAL AND MARKET STATISTICS
Selected Publicly Traded Thrifts
Located in Kentucky
As of November 18, 1997
- -------------------------------------------------------------------------------------------------------------------------------
Current * Current Current Total
Stock Price/ Price/ Tang Price/ Assets
Price LTM EPS Book Value Assets ($000)
Ticker Short Name City IPO Date ($) (x) (%) (%) Mst RctQ
- -------------------------------------------------------------------------------------------------------------------------------
CKFB CKF Bancorp Inc. Danville 01/04/95 18.375 14.70 108.66 27.72 59,868
CLAS Classic Bancshares Inc. Ashland 12/29/95 16.750 19.25 130.35 16.47 132,186
FFKY First Federal Financial Corp. Elizabethtown 07/15/87 21.750 14.90 182.93 23.64 382,585
FKKY Frankfort First Bancorp Inc. Frankfort 07/10/95 9.750 NM 142.54 24.00 133,255
FLKY First Lancaster Bancshares Lancaster 07/01/96 15.969 29.03 109.23 32.20 47,184
FTSB Fort Thomas Financial Corp. Fort Thomas 06/28/95 13.750 17.41 130.21 21.01 97,843
GWBC Gateway Bancorp Inc. Catlettsburg 01/18/95 19.125 32.42 118.42 32.86 62,609
HFFB Harrodsburg First Fin Bancorp Harrodsburg 10/04/95 16.875 23.25 107.62 31.36 108,949
KYF Kentucky First Bancorp Inc. Cynthiana 08/29/95 14.125 17.66 125.11 20.89 88,089
----------------------------------------------------------------------
AVERAGE 16.27 21.08 128.34 25.57 123,619
MEDIAN 16.75 18.46 125.11 24.00 97,843
----------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Tangible
Equity/ NPAs/ Return on Return on Current
Tang Assets Assets Avg Assets Avg Equity Dividend
(%) (%) (%) (%) Yield
Ticker Short Name City IPO Date Mst RctQ Mst RctQ LTM LTM (%)
- -----------------------------------------------------------------------------------------------------------------------------------
CKFB CKF Bancorp Inc. Danville 01/04/95 23.67 0.70 1.82 7.51 2.721
CLAS Classic Bancshares Inc. Ashland 12/29/95 12.92 0.43 0.81 5.53 1.672
FFKY First Federal Financial Corp. Elizabethtown 07/15/87 13.03 0.08 1.64 11.99 2.575
FKKY Frankfort First Bancorp Inc. Frankfort 07/10/95 16.83 0.00 0.09 0.37 3.692
FLKY First Lancaster Bancshares Lancaster 07/01/96 29.47 2.28 1.24 3.64 3.131
FTSB Fort Thomas Financial Corp. Fort Thomas 06/28/95 16.13 1.91 1.22 7.18 1.818
GWBC Gateway Bancorp Inc. Catlettsburg 01/18/95 27.74 0.76 0.94 3.60 2.092
HFFB Harrodsburg First Fin Bancorp Harrodsburg 10/04/95 26.92 0.00 1.03 3.80 2.370
KYF Kentucky First Bancorp Inc. Cynthiana 08/29/95 16.70 0.04 1.15 6.64 3.540
--------------------------------------------------------------------------
AVERAGE 20.38 0.69 1.10 5.58 2.62
MEDIAN 16.83 0.43 1.15 5.53 2.58
--------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
1 Month Avg
Weekly Vol/ Three Month
Shares Out Price Change
Ticker Short Name City IPO Date (%) (%)
- --------------------------------------------------------------------------------------------------------
CKFB CKF Bancorp Inc. Danville 01/04/95 0.84 (4.55)
CLAS Classic Bancshares Inc. Ashland 12/29/95 0.93 15.52
FFKY First Federal Financial Corp. Elizabethtown 07/15/87 0.26 1.16
FKKY Frankfort First Bancorp Inc. Frankfort 07/10/95 1.78 2.63
FLKY First Lancaster Bancshares Lancaster 07/01/96 0.23 4.71
FTSB Fort Thomas Financial Corp. Fort Thomas 06/28/95 0.78 25.00
GWBC Gateway Bancorp Inc. Catlettsburg 01/18/95 0.37 8.51
HFFB Harrodsburg First Fin Bancorp Harrodsburg 10/04/95 1.09 12.50
KYF Kentucky First Bancorp Inc. Cynthiana 08/29/95 0.58 15.31
-----------------------------------------------
AVERAGE 0.76 8.98
MEDIAN 0.78 8.51
-----------------------------------------------
* Reflects adjustment for SAIF special assessment where appropriate
Source: SNL Securities, L.P. National Capital Companies, LLC
Page 1
Exhibit I -1c
1997 Announced Kentucky Thrift Merger and Acquisition Activity
As of November 18, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Buyer: Seller: Seller: Seller:
1:Total 1:Total 1:Total 1:Tang
Bank/ Bank/ Assets Assets Deposits Eqty/
Buyer ST Thrift Seller City ST Thrift ($000) ($000) ($000) Assets (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Star Banc Corp OH Bank Great Financial Corp Louisville KY Thrift 10,753,098 3,046,227 1,893,545 8.88
Peoples Bancorp OH Bank Gateway Bancorp Catlettsburg KY Thrift 616,635 66,439 49,195 25.63
- ------------------------------------------------------------------------------------------------------------------------------------
Seller: Seller: Seller:
1:YTD 1:YTD 1:NPAs/
Bank/ Bank/ ROAA* ROAE* Assets Announce
Buyer ST Thrift Seller City ST Thrift (%) (%) (%) Date Status
- -----------------------------------------------------------------------------------------------------------------------------------
Star Banc Corp OH Bank Great Financial Corp Louisville KY Thrift 1.05 11.03 0.36 09/15/97 Pending
Peoples Bancorp OH Bank Gateway Bancorp Catlettsburg KY Thrift 0.75 2.99 0.12 04/25/97 Pending
- ------------------------------------------------------------------------------------------------------------------------------------
Ann'd Ann'd
Completed/ Deal Pr/ Deal Pr/
Bank/ Bank/ Terminated Consider Tg Bk 4-Qtr
Buyer ST Thrift Seller City ST Thrift Date Type (%) EPS (x)
- ----------------------------------------------------------------------------------------------------------------------------------
Star Banc Corp OH Bank Great Financial Corp Louisville KY Thrift NA Mixture 225.18 28.21
Peoples Bancorp OH Bank Gateway Bancorp Catlettsburg KY Thrift NA Mixture 118.45 39.06
Source: SNL Securities, L.P. National Capital Companies,
Page 1
Exhibit I - 1d
Recent Conversion Activity
Selected Publicly Traded Thrifts
Original Offering Statistics and Current Market Pricing
As of November 18, 1997
- ---------------------------------------------------------------------------------------------------------------------------------
Current
Total Stock
Shares IPO Price Price Increase
Ticker Short Name City State IPO Date Issued ($) ($) (%)
- ---------------------------------------------------------------------------------------------------------------------------------
CFBC Community First Banking Co. Carrollton GA 07/01/97 2,413,562 20.000 38.125 90.63%
FBNW FirstBank Corp. Lewiston ID 07/02/97 1,983,750 10.000 17.000 70.00%
FSFF First SecurityFed Financial Chicago IL 10/31/97 6,408,000 10.000 15.375 53.75%
FSPT FirstSpartan Financial Corp. Spartanburg SC 07/09/97 4,430,375 20.000 37.750 88.75%
GOSB GSB Financial Corp. Goshen NY 07/09/97 2,248,250 10.000 15.625 56.25%
OSFS Ohio State Financial Services Bridgeport OH 09/29/97 633,168 10.000 15.250 52.50%
OTFC Oregon Trail Financial Corp. Baker City OR 10/06/97 4,694,875 10.000 15.688 56.88%
SHSB SHS Bancorp Inc. Pittsburgh PA 10/01/97 819,950 10.000 16.250 62.50%
--------------------------------------------------------------------------
AVERAGE 2,953,991 12.500 21.383 66.41%
MEDIAN 2,330,906 10.000 15.969 59.69%
--------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Price/ Price/ Price/
Gross Pro-Forma Pro-Forma Adjusted Conversion
Proceeds Tang. Book Earnings Assets Assets
Ticker Short Name City State IPO Date ($000) (%) (%) (x) ($000)
- ------------------------------------------------------------------------------------------------------------------------------------
CFBC Community First Banking Co. Carrollton GA 07/01/97 48,271 72.744 36.1 12.0 352,532
FBNW FirstBank Corp. Lewiston ID 07/02/97 19,838 71.934 19.2 13.0 133,194
FSFF First SecurityFed Financial Chicago IL 10/31/97 64,080 73.443 21.3 19.8 260,002
FSPT FirstSpartan Financial Corp. Spartanburg SC 07/09/97 88,608 72.984 26.0 19.1 375,526
GOSB GSB Financial Corp. Goshen NY 07/09/97 22,483 73.442 23.2 18.9 96,323
OSFS Ohio State Financial Services Bridgeport OH 09/29/97 6,332 63.331 17.0 15.7 33,929
OTFC Oregon Trail Financial Corp. Baker City OR 10/06/97 46,949 76.631 18.5 18.7 204,213
SHSB SHS Bancorp Inc. Pittsburgh PA 10/01/97 8,200 70.731 13.9 9.1 81,688
-----------------------------------------------------------------------------
AVERAGE 38,095 71.91 21.90 15.79 192,176
MEDIAN 34,716 72.86 20.25 17.20 168,704
-----------------------------------------------------------------------------
Source: SNL Securities, L.P. National Capital Companies, LLC
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit II
Thrift Index Values
Price Change (%)
Value ----------------
Index 10/31/97 1 Month YTD LTM
- ----- -------- ------- --- ---
All Publicly Traded 752.4 2.03 55.58 64.74
Thrifts
SAIF Thrifts 689.6 3.00 57.00 66.37
BIF Thrifts 949.6 0.40 53.96 62.74
Stock Exchange Indices
AMEX Thrifts 225.8 5.09 44.56 52.05
NYSE Thrifts 464.0 4.82 67.36 74.55
OTC Thrifts 855.8 0.99 50.21 60.55
Geographic Indices
Mid-Atlantic Thrifts 1,533.7 4.62 58.01 68.20
Midwestern Thrifts 1,645.0 3.13 41.89 51.56
New England Thrifts 684.3 1.93 59.55 77.02
Southeastern Thrifts 718.1 7.15 60.57 65.50
Southwestern Thrifts 455.4 -4.89 44.18 52.71
Western Thrifts 759.8 -0.19 60.06 66.97
Asset Size Indices
Less than $250M 795.7 -0.66 35.65 39.46
$250M to $500M 1,188.6 3.14 50.49 61.02
$500M to $1B 763.2 0.31 46.27 56.06
$1B to $5B 867.3 5.01 58.84 70.44
More than $5B 480.8 1.21 57.23 65.60
Comparative Indices
Dow Jones Industrials 7,442.1 -6.33 15.41 23.43
S&P 500 914.6 -3.45 23.47 29.68
All SNL indices are market-value weighted; i.e., an institution's effect on an
index is proportional to that institution's market capitalization. All SNL
thrift indices began at 100 on March 30, 1984. On that date, the S&P 500 closed
at 159.2 and the Dow Jones Industrials closed at 1,164.9.
Mid-Atlantic: DE, DC, MD, NJ, NY, PA, PR Midwest: IA, IL, IN, KS, KY, MI,
MN, MO, ND, NE, OH, SD, WI
New England: CT, ME, MA, NH, RI, VT Southeast: AL, AR, FL, GA, MS,
NC, SC, TN, VA, WV
Southwest: CO, LA, NM, TX, UT West: AZ, AK, CA, HI, ID, MT,
NV, OR, WA, WY
Source: SNL Monthly Market Report
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1
SELECTED FINANCIAL DATA
Hopkinsville Federal Savings Bank
Hopkinsville, Kentucky
- --------------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- --------------------------------------------------------------------------------------------------------------
Interest Income $3,372 $3,335 ($37) -1.10%
Interest Expense 2,186 2,217 31 1.42%
----- ----- -- -----
Net Interest Income 1,186 1,118 -68 -5.73%
Operating Expenses 547 561 14 2.56%
Noninterest Income 145 167 22 15.17%
Provision for Loan Losses 10 5 -5 NA
Income Taxes 263 242 -21 -7.98%
--- --- --- ------
Net Income $511 $477 ($34) -6.65%
==== ==== ==== ======
Other Financial Information and Ratios
Average Assets $202,777 $202,252 ($525) -0.26%
Average Equity 17,751 18,498 747 4.21%
Return on Average Assets * 1.01% 0.94% -0.06% -6.41%
Return on Average Equity * 11.51% 10.31% -1.20% -10.42%
Operating Expenses to Average Assets * 1.08% 1.11% 0.03% 2.83%
Interest Income to Average Assets * 6.65% 6.60% -0.05% -0.00%
Interest Expense to Average Assets * 4.31% 4.38% 0.07% 0.01%
Net Interest Income to Average Assets * 2.34% 2.21% -0.13% -0.05%
Noninterest Income to Average Assets * 0.29% 0.33% 0.04% 0.15%
* Annualized
Dollars in thousands
Source: Unaudited Financial Statements and National Capital calculations
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1a
SELECTED FINANCIAL DATA
Ameriana Bancorp
New Castle, Indiana
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $7,413 $7,330 ($83) -1.12%
Interest Expense 4,384 4,343 -41 -0.94%
----- ----- --- ------
Net Interest Income 3,029 2,987 -42 -1.39%
Operating Expenses 2,216 2,168 -48 -2.17%
Noninterest Income 639 754 115 18.00%
Noninterest Expense 3 8 5 166.67%
Provision for Loan 51 60 9 17.65%
Losses
Income Taxes 509 511 2 0.39%
--- --- - -----
Net Income $889 $994 $105 11.81%
==== ==== ==== ======
Other Financial Information and Ratios
Average Assets $399,947 $395,379 ($4,568) -1.14%
Average Equity 43,601 43,813 212 0.49%
Return on Average Assets * 0.89% 1.01% 0.12% 13.10%
Return on Average Equity * 8.16% 9.07% 0.92% 11.27%
Operating Expenses to Average Assets * 2.22% 2.19% -0.02% -1.04%
Interest Income to Average Assets * 7.41% 7.42% 0.00% 0.00%
Interest Expense to Average Assets * 4.38% 4.39% 0.00% 0.00%
Net Interest Income to Average Assets * 3.03% 3.02% -0.00% -0.00%
Noninterest Income to Average Assets * 0.64% 0.76% 0.12% 0.19%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
National Capital Companies, LLC
Exhibit III-1b
SELECTED FINANCIAL DATA
First Bancshares Inc.
Mountain Grove, Missouri
- --------------------------------------------------------------------------------------------------------------
Three Months Three Months
Ended Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- --------------------------------------------------------------------------------------------------------------
Interest Income $3,054 $3,161 $107 3.50%
Interest Expense 1,710 1,793 83 4.85%
----- ----- -- -----
Net Interest Income 1,344 1,368 24 1.79%
Operating Expenses 835 767 -68 -8.14%
Other Noninterest Expenses 7 -30 -37 -528.57%
Noninterest Income 165 207 42 25.45%
Nonrecurring Income 0 0 0 0.00%
Provision for Loan Losses 21 19 -2 -9.52%
Income Taxes 238 298 60 25.21%
--- --- -- ------
Net Income $408 $521 $113 27.70%
==== ==== ==== ======
Other Financial Information and Ratios
Average Assets $160,314 $164,596 $4,282 2.67%
Average Equity 22,217 21,973 (244) -1.10%
Return on Average Assets * 1.02% 1.27% 0.25% 24.37%
Return on Average Equity * 7.35% 9.48% 2.14% 29.11%
Operating Expenses to Average Assets * 2.08% 1.86% -0.22% -10.53%
Interest Income to Average Assets * 7.62% 7.68% 0.06% 0.00%
Interest Expense to Average Assets * 4.27% 4.36% 0.09% 0.02%
Net Interest Income to Average Assets * 3.35% 3.32% -0.02% -0.00%
Noninterest Income to Average Assets * 0.41% 0.50% 0.09% 0.22%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
National Capital Companies, LLC
Exhibit III-1c
SELECTED FINANCIAL DATA
FFW Corp.
Wabash, Indiana
- -------------------------------------------------------------------------------------------------------------
Three Months Three Months
Ended Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- -------------------------------------------------------------------------------------------------------------
Interest Income $3,197 $3,506 $309 9.67%
Interest Expense 1,886 2,062 176 9.33%
----- ----- --- -----
Net Interest Income 1,311 1,444 133 10.14%
Operating Expenses 854 910 56 6.56%
Noninterest Income 198 234 36 18.18%
Nonrecurring Income 0 0 0 0.00%
Provision for Loan Losses 50 200 150 300.00%
Income Taxes 215 98 -117 -54.42%
--- -- ---- -------
Net Income $390 $470 $80 20.51%
==== ==== === ======
Other Financial Information and Ratios
Average Assets $166,242 $181,257 $15,015 9.03%
Average Equity 16,470 17,464 994 6.04%
Return on Average Assets * 0.94% 1.04% 0.09% 10.53%
Return on Average Equity * 9.47% 10.77% 1.29% 13.65%
Operating Expenses to Average Assets * 2.05% 2.01% -0.04% -2.27%
Interest Income to Average Assets * 7.69% 7.74% 0.04% 0.00%
Interest Expense to Average Assets * 4.54% 4.55% 0.01% 0.00%
Net Interest Income to Average Assets * 3.15% 3.19% 0.03% 0.01%
Noninterest Income to Average Assets * 0.48% 0.52% 0.04% 0.08%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
National Capital Companies, LLC
Exhibit III-1d
SELECTED FINANCIAL DATA
Wood Bancorp, Inc.
Bowling Green, Ohio
- -------------------------------------------------------------------------------------------------------------
Three Months Three Months
Ended Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- -------------------------------------------------------------------------------------------------------------
Interest Income $3,311 $3,389 $78 2.36%
Interest Expense 1,628 1,661 33 2.03%
----- ----- -- -----
Net Interest Income 1,683 1,728 45 2.67%
Operating Expenses 929 958 29 3.12%
Noninterest Income 195 222 27 13.85%
Provision for Loan Losses 30 30 0 0.00%
Income Taxes 329 350 21 6.38%
--- --- -- -----
Net Income $590 $612 $22 3.73%
==== ==== === =====
Other Financial Information and Ratios
Average Assets $163,728 $165,219 $1,491 0.91%
Average Equity 20,464 20,436 (28) -0.14%
Return on Average Assets * 1.44% 1.48% 0.04% 2.79%
Return on Average Equity * 11.53% 11.98% 0.45% 3.87%
Operating Expenses to Average Assets * 2.27% 2.32% 0.05% 2.19%
Interest Income to Average Assets * 8.09% 8.20% 0.12% 0.01%
Interest Expense to Average Assets * 3.98% 4.02% 0.04% 0.01%
Net Interest Income to Average Assets * 4.11% 4.18% 0.07% 0.01%
Noninterest Income to Average Assets * 0.48% 0.54% 0.06% 0.13%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1e
SELECTED FINANCIAL DATA
Industrial Bancorp
Bellevue, Ohio
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $6,846 $7,084 $238 3.48%
Interest Expense 3,423 3,657 234 6.84%
----- ----- --- -----
Net Interest Income 3,423 3,427 4 0.12%
Operating Expenses 1,530 1,630 100 6.54%
Noninterest Income 111 120 9 8.11%
Provision for Loan Losses 47 45 -2 -4.26%
Income Taxes 674 642 -32 -4.75%
--- --- --- ------
Net Income $1,283 $1,230 ($53) -4.13%
====== ====== ===== ======
Other Financial Information and Ratios
Average Assets $340,987 $351,898 $10,911 3.20%
Average Equity 60,843 61,036 193 0.32%
Return on Average Assets * 1.51% 1.40% -0.11% -7.10%
Return on Average Equity * 8.43% 8.06% -0.37% -4.43%
Operating Expenses to Average Assets * 1.79% 1.85% 0.05% 3.23%
Interest Income to Average Assets * 8.03% 8.05% 0.02% 0.00%
Interest Expense to Average Assets * 4.02% 4.16% 0.14% 0.03%
Net Interest Income to Average Assets * 4.02% 3.90% -0.12% -0.03%
Noninterest Income to Average Assets * 0.13% 0.14% 0.00% 0.04%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
- --------------------------------------------------------------------------------
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1f
SELECTED FINANCIAL DATA
Landmark Bancshares Inc.
Dodge City, Kansas
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $4,224 $4,346 $122 2.89%
Interest Expense 2,487 2,577 90 3.62%
----- ----- -- -----
Net Interest Income 1,737 1,769 32 1.84%
Operating Expenses 838 909 71 8.47%
Noninterest Expense 3 0 -3 -100.00%
Noninterest Income 259 238 -21 -8.11%
Nonrecurring Income 0 0 0 0.00%
Provision for Loan Losses 110 110 0 0.00%
Income Taxes 418 396 -22 -5.26%
--- --- --- ------
Net Income $627 $592 ($35) -5.58%
==== ==== ===== ======
Other Financial Information and Ratios
Average Assets $225,950 $227,918 $1,968 0.87%
Average Equity 32,103 31,758 (345) -1.07%
Return on Average Assets * 1.11% 1.04% -0.07% -6.40%
Return on Average Equity * 7.81% 7.46% -0.36% -4.56%
Operating Expenses to Average Assets * 1.48% 1.60% 0.11% 7.54%
Interest Income to Average Assets * 7.48% 7.63% 0.15% 0.02%
Interest Expense to Average Assets * 4.40% 4.52% 0.12% 0.02%
Net Interest Income to Average Assets * 3.08% 3.10% 0.03% 0.00%
Noninterest Income to Average Assets * 0.46% 0.42% -0.04% -0.08%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
- --------------------------------------------------------------------------------
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1g
SELECTED FINANCIAL DATA
MBLA Financial Corp.
Macon, Missouri
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $3,936 $3,991 $55 1.40%
Interest Expense 2,722 2,798 76 2.79%
----- ----- -- -----
Net Interest Income 1,214 1,193 -21 -1.73%
Operating Expenses 358 341 -17 -4.75%
Noninterest Income 2 4 2 100.00%
Nonrecurring Income 0 0 0 0.00%
Provision for Loan Losses 55 15 -40 -72.73%
Income Taxes 361 336 -25 -6.93%
--- --- --- ------
Net Income $442 $505 $63 14.25%
==== ==== === ======
Other Financial Information and Ratios
Average Assets $224,272 $226,439 $2,167 0.97%
Average Equity 28,458 28,344 (114) -0.40%
Return on Average Assets * 0.79% 0.89% 0.10% 13.16%
Return on Average Equity * 6.21% 7.13% 0.91% 14.71%
Operating Expenses to Average Assets * 0.64% 0.60% -0.03% -5.66%
Interest Income to Average Assets * 7.02% 7.05% 0.03% 0.00%
Interest Expense to Average Assets * 4.85% 4.94% 0.08% 0.01%
Net Interest Income to Average Assets * 2.17% 2.11% -0.05% -0.02%
Noninterest Income to Average Assets * 0.003% 0.007% 0.00% 0.98%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
- --------------------------------------------------------------------------------
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1h
SELECTED FINANCIAL DATA
MFB Corp.
Mishawaka, Indiana
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $4,511 $4,797 $286 6.34%
Interest Expense 2,612 2,779 167 6.39%
----- ----- --- -----
Net Interest Income 1,899 2,018 119 6.27%
Operating Expenses 1,155 1,304 149 12.90%
Noninterest Income 106 118 12 11.32%
Provision for Loan Losses 7 7 0 0.00%
Nonrecurring Income 0 0 0 0.00%
Income Taxes 336 329 -7 -2.08%
--- --- -- ------
Net Income $507 $496 ($11) -2.17%
==== ==== ===== ======
Other Financial Information and Ratios
Average Assets $241,266 $252,081 $10,815 4.48%
Average Equity 33,939 33,706 (233) -0.69%
Return on Average Assets * 0.84% 0.79% -0.05% -6.37%
Return on Average Equity * 5.98% 5.89% -0.08% -1.49%
Operating Expenses to Average Assets * 1.91% 2.07% 0.15% 8.06%
Interest Income to Average Assets * 7.48% 7.61% 0.13% 0.01%
Interest Expense to Average Assets * 4.33% 4.41% 0.07% 0.01%
Net Interest Income to Average Assets * 3.15% 3.20% 0.05% 0.01%
Noninterest Income to Average Assets * 0.18% 0.19% 0.01% 0.06%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
- --------------------------------------------------------------------------------
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1i
SELECTED FINANCIAL DATA
Milton Federal Financial Corp.
West Milton, Ohio
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $3,517 $3,732 $215 6.11%
Interest Expense 2,086 2,309 223 10.69%
----- ----- --- ------
Net Interest Income 1,431 1,423 -8 -0.56%
Operating Expenses 958 1,009 51 5.32%
Noninterest Income 98 111 13 13.27%
Provision for Loan Losses 32 2 -30 -93.75%
Income Taxes 183 178 -5 -2.73%
--- --- -- ------
Net Income $356 $345 ($11) -3.09%
==== ==== ===== ======
Other Financial Information and Ratios
Average Assets $191,419 $203,377 $11,958 6.25%
Average Equity 26,154 26,065 (89) -0.34%
Return on Average Assets * 0.74% 0.68% -0.06% -8.79%
Return on Average Equity * 5.44% 5.29% -0.15% -2.76%
Operating Expenses to Average Assets * 2.00% 1.98% -0.01% -0.87%
Interest Income to Average Assets * 7.35% 7.34% -0.00% -0.00%
Interest Expense to Average Assets * 4.36% 4.54% 0.18% 0.04%
Net Interest Income to Average Assets * 2.99% 2.80% -0.19% -0.06%
Noninterest Income to Average Assets * 0.20% 0.22% 0.01% 0.06%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
- --------------------------------------------------------------------------------
National Capital Companies, LLC
- --------------------------------------------------------------------------------
Exhibit III-1j
SELECTED FINANCIAL DATA
Midwest Bancshares Inc.
Burlington, Iowa
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
Three Months Ended Three Months Ended Quarterly Percent
Income Statement Data June 30, 1997 Sept 30, 1997 Change Change
- ----------------------------------------------------------------------------------------------------------
Interest Income $2,676 $2,740 $64 2.39%
Interest Expense 1,663 1,724 61 3.67%
----- ----- -- -----
Net Interest Income 1,013 1,016 3 0.30%
Operating Expenses 621 615 -6 -0.97%
Noninterest Income 78 263 185 237.18%
Provision for Loan Losses 12 12 0 0.00%
Income Taxes 168 235 67 39.88%
--- --- -- ------
Net Income $290 $417 $127 43.79%
==== ==== ==== ======
Other Financial Information and Ratios
Average Assets $143,335 $147,676 $4,341 3.03%
Average Equity 9,875 10,190 315 3.19%
Return on Average Assets * 0.81% 1.13% 0.32% 39.57%
Return on Average Equity * 11.75% 16.37% 4.62% 39.35%
Operating Expenses to Average Assets * 1.73% 1.67% -0.06% -3.88%
Interest Income to Average Assets * 7.47% 7.42% -0.04% -0.00%
Interest Expense to Average Assets * 4.64% 4.67% 0.02% 0.00%
Net Interest Income to Average Assets * 2.83% 2.75% -0.07% -0.02%
Noninterest Income to Average Assets * 0.22% 0.71% 0.49% 2.27%
* Annualized
Dollars in thousands
Source: SNL Securities, L.P. and National Capital calculations
- --------------------------------------------------------------------------------
Exhibit IV-1
SELECTED FINANCIAL AND MARKET STATISTICS
Publicly Traded Thrift Institutions Excluding Mutual Holding Companies
In the Midwestern Region with Assets Less Than $500 Million and IPO Date Before
March 31, 1996 As of November 18, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
* Adjusted
Current Current Current Current
Stock Price/ Price/ Price/ Tang
Price LTM EPS LTM EPS Book Value
Ticker Short Name City State Exchange IPO Date ($) (x) (x) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
ASBI Ameriana Bancorp New Castle IN NASDAQ 03/02/87 20.000 17.86 17.86 146.84
ASBP ASB Financial Corp. Portsmouth OH NASDAQ 05/11/95 13.250 18.66 18.66 128.64
ATSB AmTrust Capital Corp. Peru IN NASDAQ 03/28/95 14.500 25.89 25.89 101.26
BDJI First Federal Bancorporation Bemidji MN NASDAQ 04/04/95 25.500 21.07 21.07 143.66
BWFC Bank West Financial Corp. Grand Rapids MI NASDAQ 03/30/95 22.000 23.91 23.91 165.41
CAPS Capital Savings Bancorp Inc. Jefferson City MO NASDAQ 12/29/93 18.375 15.44 15.44 157.05
CASH First Midwest Financial Inc. Storm Lake IA NASDAQ 09/20/93 19.750 15.55 15.55 138.02
CBCI Calumet Bancorp Inc. Dolton IL NASDAQ 02/20/92 33.000 16.34 16.34 131.95
CBSB Charter Financial Inc. Sparta IL NASDAQ 12/29/95 21.063 20.25 16.33 173.64
CIBI Community Investors Bancorp Bucyrus OH NASDAQ 02/07/95 15.750 15.00 15.00 130.27
CKFB CKF Bancorp Inc. Danville KY NASDAQ 01/04/95 18.375 14.70 14.70 108.66
CLAS Classic Bancshares Inc. Ashland KY NASDAQ 12/29/95 16.750 19.25 19.25 130.35
CMRN Cameron Financial Corp Cameron MO NASDAQ 04/03/95 19.875 25.16 20.35 115.69
CSBF CSB Financial Group Inc. Centralia IL NASDAQ 10/09/95 12.250 72.06 42.25 99.84
EFBI Enterprise Federal Bancorp West Chester OH NASDAQ 10/17/94 26.750 21.75 21.75 169.20
FBCI Fidelity Bancorp Inc. Chicago IL NASDAQ 12/15/93 24.500 17.75 17.75 131.58
FBCV 1ST Bancorp Vincennes IN NASDAQ 04/07/87 38.750 14.25 14.25 121.06
FBSI First Bancshares Inc. Mountain Grove MO NASDAQ 12/22/93 26.250 15.44 15.44 126.57
FFBI First Financial Bancorp Inc. Belvidere IL NASDAQ 10/04/93 19.000 NM NM 107.83
FFBZ First Federal Bancorp Inc. Zanesville OH NASDAQ 07/13/92 19.250 24.06 15.83 218.75
FFED Fidelity Federal Bancorp Evansville IN NASDAQ 08/31/87 10.250 14.64 14.64 199.03
FFFD North Central Bancshares Inc. Fort Dodge IA NASDAQ 03/21/96 19.000 16.52 16.52 125.58
FFHH FSF Financial Corp. Hutchinson MN NASDAQ 10/07/94 19.000 17.92 17.92 117.00
FFHS First Franklin Corp. Cincinnati OH NASDAQ 01/26/88 26.000 25.49 25.49 149.51
FFKY First Federal Financial Corp. Elizabethtown KY NASDAQ 07/15/87 21.750 14.90 14.90 182.93
FFSL First Independence Corp. Independence KS NASDAQ 10/08/93 15.000 22.06 22.06 127.33
FFWC FFW Corp. Wabash IN NASDAQ 04/05/93 35.000 14.23 14.23 156.53
FFWD Wood Bancorp Inc. Bowling Green OH NASDAQ 08/31/93 18.625 18.44 18.44 190.63
FKKY Frankfort First Bancorp Inc. Frankfort KY NASDAQ 07/10/95 9.750 NM NM 142.54
FMBD First Mutual Bancorp Inc. Decatur IL NASDAQ 07/05/95 20.000 58.82 58.82 156.49
FTSB Fort Thomas Financial Corp. Fort Thomas KY NASDAQ 06/28/95 13.750 17.41 17.41 130.21
GFCO Glenway Financial Corp. Cincinnati OH NASDAQ 11/30/90 16.000 16.16 16.16 133.11
GFSB GFS Bancorp Inc. Grinnell IA NASDAQ 01/06/94 17.500 15.63 15.63 158.95
GTPS Great American Bancorp Champaign IL NASDAQ 06/30/95 18.750 48.08 48.08 101.68
GWBC Gateway Bancorp Inc. Catlettsburg KY NASDAQ 01/18/95 19.125 32.42 32.42 118.42
HALL Hallmark Capital Corp. West Allis WI NASDAQ 01/03/94 28.875 15.95 15.95 136.40
HBBI Home Building Bancorp Washington IN NASDAQ 02/08/95 21.250 18.48 18.48 104.01
HBFW Home Bancorp Fort Wayne IN NASDAQ 03/30/95 25.000 32.89 21.68 141.88
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY NASDAQ 10/04/95 16.875 28.60 23.25 107.62
HFSA Hardin Bancorp Inc. Hardin MO NASDAQ 09/29/95 17.500 18.23 18.23 111.11
HHFC Harvest Home Financial Corp. Cheviot OH NASDAQ 10/10/94 14.250 54.81 26.83 125.99
HMCI HomeCorp Inc. Rockford IL NASDAQ 06/22/90 23.375 25.41 25.41 178.84
HZFS Horizon Financial Svcs Corp. Oskaloosa IA NASDAQ 06/30/94 11.125 14.26 14.26 108.33
INBI Industrial Bancorp Inc. Bellevue OH NASDAQ 08/01/95 17.250 17.08 17.08 146.68
INCB Indiana Community Bank SB Lebanon IN NASDAQ 12/15/94 20.500 107.89 38.59 165.72
JOAC Joachim Bancorp Inc. De Soto MO NASDAQ 12/28/95 15.000 68.18 39.66 110.13
KNK Kankakee Bancorp Inc. Kankakee IL AMSE 01/06/93 31.125 15.26 15.26 121.16
KYF Kentucky First Bancorp Inc. Cynthiana KY AMSE 08/29/95 14.125 17.66 17.66 125.11
- ------------------------------------------------------------------------------------------------------------------------------------
Tangible
Total Equity/
Price/ Assets Tang Assets
Assets ($000) (%)
Ticker Short Name City State Exchange IPO Date (%) Mst RctQ Mst RctQ
- ------------------------------------------------------------------------------------------------------------------------------------
ASBI Ameriana Bancorp New Castle IN NASDAQ 03/02/87 16.44 393,028 11.20
ASBP ASB Financial Corp. Portsmouth OH NASDAQ 05/11/95 20.03 112,449 15.57
ATSB AmTrust Capital Corp. Peru IN NASDAQ 03/28/95 10.95 69,685 10.83
BDJI First Federal Bancorporation Bemidji MN NASDAQ 04/04/95 15.38 111,492 10.71
BWFC Bank West Financial Corp. Grand Rapids MI NASDAQ 03/30/95 23.40 164,854 14.15
CAPS Capital Savings Bancorp Inc. Jefferson City MO NASDAQ 12/29/93 14.35 242,259 9.14
CASH First Midwest Financial Inc. Storm Lake IA NASDAQ 09/20/93 13.17 404,589 9.66
CBCI Calumet Bancorp Inc. Dolton IL NASDAQ 02/20/92 21.40 488,346 16.22
CBSB Charter Financial Inc. Sparta IL NASDAQ 12/29/95 22.23 393,268 13.02
CIBI Community Investors Bancorp Bucyrus OH NASDAQ 02/07/95 15.30 94,328 11.75
CKFB CKF Bancorp Inc. Danville KY NASDAQ 01/04/95 27.72 59,868 23.67
CLAS Classic Bancshares Inc. Ashland KY NASDAQ 12/29/95 16.47 132,186 12.92
CMRN Cameron Financial Corp Cameron MO NASDAQ 04/03/95 25.09 208,105 21.69
CSBF CSB Financial Group Inc. Centralia IL NASDAQ 10/09/95 23.62 48,844 23.99
EFBI Enterprise Federal Bancorp West Chester OH NASDAQ 10/17/94 19.33 274,888 11.43
FBCI Fidelity Bancorp Inc. Chicago IL NASDAQ 12/15/93 13.75 497,862 10.46
FBCV 1ST Bancorp Vincennes IN NASDAQ 04/07/87 10.27 260,935 8.50
FBSI First Bancshares Inc. Mountain Grove MO NASDAQ 12/22/93 17.62 162,755 13.92
FFBI First Financial Bancorp Inc. Belvidere IL NASDAQ 10/04/93 9.33 84,531 8.65
FFBZ First Federal Bancorp Inc. Zanesville OH NASDAQ 07/13/92 15.03 201,262 7.54
FFED Fidelity Federal Bancorp Evansville IN NASDAQ 08/31/87 12.16 235,336 6.11
FFFD North Central Bancshares Inc. Fort Dodge IA NASDAQ 03/21/96 28.77 215,133 22.92
FFHH FSF Financial Corp. Hutchinson MN NASDAQ 10/07/94 14.73 388,135 11.17
FFHS First Franklin Corp. Cincinnati OH NASDAQ 01/26/88 13.41 231,189 8.97
FFKY First Federal Financial Corp. Elizabethtown KY NASDAQ 07/15/87 23.64 382,585 13.03
FFSL First Independence Corp. Independence KS NASDAQ 10/08/93 13.04 112,523 10.25
FFWC FFW Corp. Wabash IN NASDAQ 04/05/93 13.79 181,468 8.89
FFWD Wood Bancorp Inc. Bowling Green OH NASDAQ 08/31/93 23.70 166,520 12.44
FKKY Frankfort First Bancorp Inc. Frankfort KY NASDAQ 07/10/95 24.00 133,255 16.83
FMBD First Mutual Bancorp Inc. Decatur IL NASDAQ 07/05/95 17.43 402,389 10.55
FTSB Fort Thomas Financial Corp. Fort Thomas KY NASDAQ 06/28/95 21.01 97,843 16.13
GFCO Glenway Financial Corp. Cincinnati OH NASDAQ 11/30/90 12.44 293,245 9.36
GFSB GFS Bancorp Inc. Grinnell IA NASDAQ 01/06/94 18.30 94,496 11.51
GTPS Great American Bancorp Champaign IL NASDAQ 06/30/95 22.80 139,568 20.43
GWBC Gateway Bancorp Inc. Catlettsburg KY NASDAQ 01/18/95 32.86 62,609 27.74
HALL Hallmark Capital Corp. West Allis WI NASDAQ 01/03/94 9.96 418,467 7.30
HBBI Home Building Bancorp Washington IN NASDAQ 02/08/95 15.86 41,746 14.12
HBFW Home Bancorp Fort Wayne IN NASDAQ 03/30/95 18.85 334,862 13.29
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY NASDAQ 10/04/95 31.36 108,949 26.92
HFSA Hardin Bancorp Inc. Hardin MO NASDAQ 09/29/95 12.81 117,364 11.53
HHFC Harvest Home Financial Corp. Cheviot OH NASDAQ 10/10/94 14.88 87,596 11.81
HMCI HomeCorp Inc. Rockford IL NASDAQ 06/22/90 12.21 326,877 6.83
HZFS Horizon Financial Svcs Corp. Oskaloosa IA NASDAQ 06/30/94 10.79 87,784 9.95
INBI Industrial Bancorp Inc. Bellevue OH NASDAQ 08/01/95 25.20 354,116 17.18
INCB Indiana Community Bank SB Lebanon IN NASDAQ 12/15/94 20.17 93,702 12.17
JOAC Joachim Bancorp Inc. De Soto MO NASDAQ 12/28/95 31.02 34,938 28.16
KNK Kankakee Bancorp Inc. Kankakee IL AMSE 01/06/93 13.05 339,937 10.85
KYF Kentucky First Bancorp Inc. Cynthiana KY AMSE 08/29/95 20.89 88,089 16.70
- ------------------------------------------------------------------------------------------------------------------------------------
NPAs/ Return on Return on
Assets Avg Assets Avg Equity
(%) (%) (%)
Ticker Short Name City State Exchange IPO Date Mst RctQ LTM LTM
- ------------------------------------------------------------------------------------------------------------------------------------
ASBI Ameriana Bancorp New Castle IN NASDAQ 03/02/87 0.49 0.92 8.36
ASBP ASB Financial Corp. Portsmouth OH NASDAQ 05/11/95 0.90 0.97 5.89
ATSB AmTrust Capital Corp. Peru IN NASDAQ 03/28/95 2.20 0.40 3.86
BDJI First Federal Bancorporation Bemidji MN NASDAQ 04/04/95 0.24 0.65 5.87
BWFC Bank West Financial Corp. Grand Rapids MI NASDAQ 03/30/95 0.21 1.03 6.76
CAPS Capital Savings Bancorp Inc. Jefferson City MO NASDAQ 12/29/93 0.17 0.95 10.99
CASH First Midwest Financial Inc. Storm Lake IA NASDAQ 09/20/93 0.75 0.92 8.40
CBCI Calumet Bancorp Inc. Dolton IL NASDAQ 02/20/92 1.27 1.44 9.17
CBSB Charter Financial Inc. Sparta IL NASDAQ 12/29/95 0.56 1.13 7.62
CIBI Community Investors Bancorp Bucyrus OH NASDAQ 02/07/95 0.53 0.97 8.37
CKFB CKF Bancorp Inc. Danville KY NASDAQ 01/04/95 0.70 1.82 7.51
CLAS Classic Bancshares Inc. Ashland KY NASDAQ 12/29/95 0.43 0.81 5.53
CMRN Cameron Financial Corp Cameron MO NASDAQ 04/03/95 0.24 1.06 4.41
CSBF CSB Financial Group Inc. Centralia IL NASDAQ 10/09/95 0.56 0.31 1.21
EFBI Enterprise Federal Bancorp West Chester OH NASDAQ 10/17/94 0.07 0.93 7.35
FBCI Fidelity Bancorp Inc. Chicago IL NASDAQ 12/15/93 0.41 0.81 7.81
FBCV 1ST Bancorp Vincennes IN NASDAQ 04/07/87 1.12 0.72 8.73
FBSI First Bancshares Inc. Mountain Grove MO NASDAQ 12/22/93 0.13 1.20 8.49
FFBI First Financial Bancorp Inc. Belvidere IL NASDAQ 10/04/93 0.41 (0.38) (4.72)
FFBZ First Federal Bancorp Inc. Zanesville OH NASDAQ 07/13/92 0.47 0.73 9.61
FFED Fidelity Federal Bancorp Evansville IN NASDAQ 08/31/87 0.09 0.75 14.15
FFFD North Central Bancshares Inc. Fort Dodge IA NASDAQ 03/21/96 0.22 1.84 7.58
FFHH FSF Financial Corp. Hutchinson MN NASDAQ 10/07/94 0.15 0.84 7.03
FFHS First Franklin Corp. Cincinnati OH NASDAQ 01/26/88 0.33 0.55 6.18
FFKY First Federal Financial Corp. Elizabethtown KY NASDAQ 07/15/87 0.08 1.64 11.99
FFSL First Independence Corp. Independence KS NASDAQ 10/08/93 0.99 0.65 6.09
FFWC FFW Corp. Wabash IN NASDAQ 04/05/93 0.18 1.05 10.54
FFWD Wood Bancorp Inc. Bowling Green OH NASDAQ 08/31/93 0.03 1.40 11.07
FKKY Frankfort First Bancorp Inc. Frankfort KY NASDAQ 07/10/95 0.00 0.09 0.37
FMBD First Mutual Bancorp Inc. Decatur IL NASDAQ 07/05/95 0.06 0.31 2.16
FTSB Fort Thomas Financial Corp. Fort Thomas KY NASDAQ 06/28/95 1.91 1.22 7.18
GFCO Glenway Financial Corp. Cincinnati OH NASDAQ 11/30/90 0.25 0.80 8.37
GFSB GFS Bancorp Inc. Grinnell IA NASDAQ 01/06/94 0.98 1.27 11.01
GTPS Great American Bancorp Champaign IL NASDAQ 06/30/95 0.01 0.53 2.38
GWBC Gateway Bancorp Inc. Catlettsburg KY NASDAQ 01/18/95 0.76 0.94 3.60
HALL Hallmark Capital Corp. West Allis WI NASDAQ 01/03/94 0.12 0.65 9.10
HBBI Home Building Bancorp Washington IN NASDAQ 02/08/95 0.44 0.75 5.76
HBFW Home Bancorp Fort Wayne IN NASDAQ 03/30/95 0.00 0.56 3.96
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY NASDAQ 10/04/95 0.00 1.03 3.80
HFSA Hardin Bancorp Inc. Hardin MO NASDAQ 09/29/95 0.09 0.80 5.88
HHFC Harvest Home Financial Corp. Cheviot OH NASDAQ 10/10/94 0.11 0.30 2.31
HMCI HomeCorp Inc. Rockford IL NASDAQ 06/22/90 2.16 0.51 7.95
HZFS Horizon Financial Svcs Corp. Oskaloosa IA NASDAQ 06/30/94 0.71 0.81 7.85
INBI Industrial Bancorp Inc. Bellevue OH NASDAQ 08/01/95 0.14 1.51 8.32
INCB Indiana Community Bank SB Lebanon IN NASDAQ 12/15/94 0.13 0.19 1.55
JOAC Joachim Bancorp Inc. De Soto MO NASDAQ 12/28/95 0.17 0.46 1.55
KNK Kankakee Bancorp Inc. Kankakee IL AMSE 01/06/93 0.80 0.89 8.28
KYF Kentucky First Bancorp Inc. Cynthiana KY AMSE 08/29/95 0.04 1.15 6.64
===============================================================================
Exhibit IV-1
SELECTED FINANCIAL AND MARKET STATISTICS
Publicly Traded Thrift Institutions Excluding Mutual Holding Companies
In the Midwestern Region with Assets Less Than $500 Million
and IPO Date Before March 31, 1996
As of November 18, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
* Adjusted
Current Current Current Current
Stock Price/ Price/ Price/ Tang
Price LTM EPS LTM EPS Book Value
Ticker Short Name City State Exchange IPO Date ($) (x) (x) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
LARK Landmark Bancshares Inc. Dodge City KS NASDAQ 03/28/94 24.000 22.64 16.12 130.51
- ------------------------------------------------------------------------------------------------------------------------------------
LOGN Logansport Financial Corp. Logansport IN NASDAQ 06/14/95 15.750 17.50 17.50 122.47
LSBI LSB Financial Corp. Lafayette IN NASDAQ 02/03/95 26.000 15.57 15.57 128.46
MARN Marion Capital Holdings Marion IN NASDAQ 03/18/93 26.500 16.67 16.67 119.26
- ------------------------------------------------------------------------------------------------------------------------------------
MBLF MBLA Financial Corp. Macon MO NASDAQ 06/24/93 25.250 18.84 18.84 112.98
- ------------------------------------------------------------------------------------------------------------------------------------
MCBS Mid Continent Bancshares Inc. El Dorado KS NASDAQ 06/27/94 39.625 21.08 17.85 198.82
- ------------------------------------------------------------------------------------------------------------------------------------
MFBC MFB Corp. Mishawaka IN NASDAQ 03/25/94 23.250 20.39 20.39 114.48
- ------------------------------------------------------------------------------------------------------------------------------------
MFCX Marshalltown Financial Corp. Marshalltown IA NASDAQ 03/31/94 17.125 30.04 30.04 119.17
- ------------------------------------------------------------------------------------------------------------------------------------
MFFC Milton Federal Financial Corp. West Milton OH NASDAQ 10/07/94 15.000 23.81 23.81 121.85
- ------------------------------------------------------------------------------------------------------------------------------------
MIFC Mid-Iowa Financial Corp. Newton IA NASDAQ 10/14/92 10.375 14.82 11.24 148.43
MIVI Mississippi View Holding Co. Little Falls MN NASDAQ 03/24/95 17.625 18.36 18.36 108.13
MSBF MSB Financial Inc. Marshall MI NASDAQ 02/06/95 17.500 19.66 19.66 169.41
MWBI Midwest Bancshares Inc. Burlington IA NASDAQ 11/12/92 51.000 15.27 15.27 166.94
MWFD Midwest Federal Financial Baraboo WI NASDAQ 07/08/92 26.000 20.00 15.05 240.52
NBSI North Bancshares Inc. Chicago IL NASDAQ 12/21/93 26.500 35.33 35.33 155.52
NEIB Northeast Indiana Bancorp Huntington IN NASDAQ 06/28/95 21.000 17.36 17.36 135.40
NSLB NS&L Bancorp Inc. Neosho MO NASDAQ 06/08/95 18.875 42.90 28.09 114.32
NWEQ Northwest Equity Corp. Amery WI NASDAQ 10/11/94 17.750 14.31 14.31 122.16
OHSL OHSL Financial Corp. Cincinnati OH NASDAQ 02/10/93 26.500 16.16 16.16 123.72
PCBC Perry County Financial Corp. Perryville MO NASDAQ 02/13/95 23.500 24.48 19.33 124.93
PERM Permanent Bancorp Inc. Evansville IN NASDAQ 04/04/94 26.250 21.69 21.69 130.60
PFDC Peoples Bancorp Auburn IN NASDAQ 07/07/87 31.500 22.83 17.29 163.81
PMFI Perpetual Midwest Financial Cedar Rapids IA NASDAQ 03/31/94 25.750 31.40 31.40 141.17
PTRS Potters Financial Corp. East Liverpool OH NASDAQ 12/31/93 32.750 14.00 14.00 146.07
PVFC PVF Capital Corp. Bedford Heights OH NASDAQ 12/30/92 20.250 11.25 11.25 190.50
QCFB QCF Bancorp Inc. Virginia MN NASDAQ 04/03/95 28.250 14.41 14.41 150.03
SFFC StateFed Financial Corp. Des Moines IA NASDAQ 01/05/94 13.500 18.75 18.75 136.92
SFSB SuburbFed Financial Corp. Flossmoor IL NASDAQ 03/04/92 32.875 16.12 16.12 145.14
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO NASDAQ 04/13/94 17.875 19.02 19.02 109.26
SMFC Sho-Me Financial Corp. Mt. Vernon MO NASDAQ 07/01/94 47.000 17.54 17.54 207.69
SOBI Sobieski Bancorp Inc. South Bend IN NASDAQ 03/31/95 19.500 29.55 29.55 112.98
SWBI Southwest Bancshares Hometown IL NASDAQ 06/24/92 25.250 17.53 17.53 157.71
THR Three Rivers Financial Corp. Three Rivers MI AMSE 08/24/95 20.250 19.10 19.10 129.06
WCBI Westco Bancorp Westchester IL NASDAQ 06/26/92 26.625 15.66 15.66 137.10
WEFC Wells Financial Corp. Wells MN NASDAQ 04/11/95 17.500 15.91 15.91 117.77
WFI Winton Financial Corp. Cincinnati OH AMSE 08/04/88 19.688 12.15 12.15 171.35
WOFC Western Ohio Financial Corp. Springfield OH NASDAQ 07/29/94 25.750 38.43 38.43 117.90
------------------------------------------------------------------
AVERAGE 21.89 23.40 20.60 139.55
MEDIAN 20.00 18.44 17.75 130.60
------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Tangible
Total Equity/ NPAs/
Price/ Assets Tang Assets Assets
Assets ($000) (%) (%)
Ticker Short Name City State Exchange IPO Date (%) Mst RctQ Mst RctQ Mst RctQ
- ------------------------------------------------------------------------------------------------------------------------------------
LARK Landmark Bancshares Inc. Dodge City KS NASDAQ 03/28/94 18.00 228,100 13.79 0.04
LOGN Logansport Financial Corp. Logansport IN NASDAQ 06/14/95 23.14 85,801 18.89 0.49
LSBI LSB Financial Corp. Lafayette IN NASDAQ 02/03/95 11.90 200,266 8.63 1.05
MARN Marion Capital Holdings Marion IN NASDAQ 03/18/93 26.17 179,822 21.95 1.08
MBLF MBLA Financial Corp. Macon MO NASDAQ 06/24/93 14.30 224,013 12.65 0.57
MCBS Mid Continent Bancshares Inc. El Dorado KS NASDAQ 06/27/94 18.99 408,590 9.39 0.15
MFBC MFB Corp. Mishawaka IN NASDAQ 03/25/94 15.00 255,921 13.10 0.00
MFCX Marshalltown Financial Corp. Marshalltown IA NASDAQ 03/31/94 19.26 125,491 16.16 0.00
MFFC Milton Federal Financial Corp. West Milton OH NASDAQ 10/07/94 16.47 209,958 12.57 0.15
MIFC Mid-Iowa Financial Corp. Newton IA NASDAQ 10/14/92 13.86 125,541 9.34 0.02
MIVI Mississippi View Holding Co. Little Falls MN NASDAQ 03/24/95 19.03 68,546 17.61 NA
MSBF MSB Financial Inc. Marshall MI NASDAQ 02/06/95 28.03 77,014 16.54 0.02
MWBI Midwest Bancshares Inc. Burlington IA NASDAQ 11/12/92 11.55 149,850 6.92 0.81
MWFD Midwest Federal Financial Baraboo WI NASDAQ 07/08/92 20.44 207,050 8.52 0.12
NBSI North Bancshares Inc. Chicago IL NASDAQ 12/21/93 20.88 122,081 13.43 0.00
NEIB Northeast Indiana Bancorp Huntington IN NASDAQ 06/28/95 19.45 190,319 14.37 0.17
NSLB NS&L Bancorp Inc. Neosho MO NASDAQ 06/08/95 22.36 59,711 19.56 0.02
NWEQ Northwest Equity Corp. Amery WI NASDAQ 10/11/94 15.36 96,954 11.69 1.42
OHSL OHSL Financial Corp. Cincinnati OH NASDAQ 02/10/93 13.95 234,600 10.92 0.03
PCBC Perry County Financial Corp. Perryville MO NASDAQ 02/13/95 23.99 81,105 19.20 0.03
PERM Permanent Bancorp Inc. Evansville IN NASDAQ 04/04/94 12.73 433,568 9.35 1.07
PFDC Peoples Bancorp Auburn IN NASDAQ 07/07/87 24.91 287,564 15.20 0.34
PMFI Perpetual Midwest Financial Cedar Rapids IA NASDAQ 03/31/94 12.01 401,665 8.51 0.29
PTRS Potters Financial Corp. East Liverpool OH NASDAQ 12/31/93 12.87 122,716 8.81 0.44
PVFC PVF Capital Corp. Bedford Heights OH NASDAQ 12/30/92 13.69 383,278 7.18 1.13
QCFB QCF Bancorp Inc. Virginia MN NASDAQ 04/03/95 24.67 158,192 16.45 0.24
SFFC StateFed Financial Corp. Des Moines IA NASDAQ 01/05/94 24.02 87,542 17.53 2.19
SFSB SuburbFed Financial Corp. Flossmoor IL NASDAQ 03/04/92 9.60 432,559 6.61 NA
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO NASDAQ 04/13/94 17.65 163,297 16.15 0.88
SMFC Sho-Me Financial Corp. Mt. Vernon MO NASDAQ 07/01/94 20.43 344,849 9.03 0.29
SOBI Sobieski Bancorp Inc. South Bend IN NASDAQ 03/31/95 18.04 84,279 14.78 0.13
SWBI Southwest Bancshares Hometown IL NASDAQ 06/24/92 17.89 375,004 11.34 0.20
THR Three Rivers Financial Corp. Three Rivers MI AMSE 08/24/95 17.70 94,216 13.73 0.87
WCBI Westco Bancorp Westchester IL NASDAQ 06/26/92 21.31 309,070 15.54 0.21
WEFC Wells Financial Corp. Wells MN NASDAQ 04/11/95 16.75 204,761 14.22 0.23
WFI Winton Financial Corp. Cincinnati OH AMSE 08/04/88 12.05 324,532 7.04 0.28
WOFC Western Ohio Financial Corp. Springfield OH NASDAQ 07/29/94 15.26 397,425 13.06 0.44
------------------------------------------------------------------
AVERAGE 18.16 210,724 13.39 0.46
MEDIAN 17.65 181,468 12.57 0.24
------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Return on Return on
Avg Assets Avg Equity
(%) (%)
Ticker Short Name City State Exchange IPO Date LTM LTM
- --------------------------------------------------------------------------------------------------------------------
LARK Landmark Bancshares Inc. Dodge City KS NASDAQ 03/28/94 0.88 5.95
LOGN Logansport Financial Corp. Logansport IN NASDAQ 06/14/95 1.42 7.28
LSBI LSB Financial Corp. Lafayette IN NASDAQ 02/03/95 0.78 8.67
MARN Marion Capital Holdings Marion IN NASDAQ 03/18/93 1.70 7.49
MBLF MBLA Financial Corp. Macon MO NASDAQ 06/24/93 0.83 6.50
MCBS Mid Continent Bancshares Inc. El Dorado KS NASDAQ 06/27/94 1.03 9.74
MFBC MFB Corp. Mishawaka IN NASDAQ 03/25/94 0.83 5.63
MFCX Marshalltown Financial Corp. Marshalltown IA NASDAQ 03/31/94 0.67 4.26
MFFC Milton Federal Financial Corp. West Milton OH NASDAQ 10/07/94 0.73 5.08
MIFC Mid-Iowa Financial Corp. Newton IA NASDAQ 10/14/92 1.00 10.89
MIVI Mississippi View Holding Co. Little Falls MN NASDAQ 03/24/95 1.07 6.04
MSBF MSB Financial Inc. Marshall MI NASDAQ 02/06/95 1.50 8.42
MWBI Midwest Bancshares Inc. Burlington IA NASDAQ 11/12/92 0.87 12.54
MWFD Midwest Federal Financial Baraboo WI NASDAQ 07/08/92 1.14 13.21
NBSI North Bancshares Inc. Chicago IL NASDAQ 12/21/93 0.63 4.37
NEIB Northeast Indiana Bancorp Huntington IN NASDAQ 06/28/95 1.20 7.78
NSLB NS&L Bancorp Inc. Neosho MO NASDAQ 06/08/95 0.49 2.39
NWEQ Northwest Equity Corp. Amery WI NASDAQ 10/11/94 1.03 8.75
OHSL OHSL Financial Corp. Cincinnati OH NASDAQ 02/10/93 0.90 8.06
PCBC Perry County Financial Corp. Perryville MO NASDAQ 02/13/95 0.93 4.97
PERM Permanent Bancorp Inc. Evansville IN NASDAQ 04/04/94 0.62 6.64
PFDC Peoples Bancorp Auburn IN NASDAQ 07/07/87 1.12 7.29
PMFI Perpetual Midwest Financial Cedar Rapids IA NASDAQ 03/31/94 0.40 4.65
PTRS Potters Financial Corp. East Liverpool OH NASDAQ 12/31/93 0.98 10.93
PVFC PVF Capital Corp. Bedford Heights OH NASDAQ 12/30/92 1.37 19.66
QCFB QCF Bancorp Inc. Virginia MN NASDAQ 04/03/95 1.65 9.33
SFFC StateFed Financial Corp. Des Moines IA NASDAQ 01/05/94 1.28 7.20
SFSB SuburbFed Financial Corp. Flossmoor IL NASDAQ 03/04/92 0.66 10.11
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO NASDAQ 04/13/94 0.93 5.81
SMFC Sho-Me Financial Corp. Mt. Vernon MO NASDAQ 07/01/94 1.30 13.64
SOBI Sobieski Bancorp Inc. South Bend IN NASDAQ 03/31/95 0.62 3.88
SWBI Southwest Bancshares Hometown IL NASDAQ 06/24/92 1.05 9.84
THR Three Rivers Financial Corp. Three Rivers MI AMSE 08/24/95 0.90 6.48
WCBI Westco Bancorp Westchester IL NASDAQ 06/26/92 1.50 9.74
WEFC Wells Financial Corp. Wells MN NASDAQ 04/11/95 1.06 7.49
WFI Winton Financial Corp. Cincinnati OH AMSE 08/04/88 1.05 14.63
WOFC Western Ohio Financial Corp. Springfield OH NASDAQ 07/29/94 0.37 2.74
---------------------------------------------
AVERAGE 0.91 7.20
MEDIAN 0.92 7.35
---------------------------------------------
Source: SNL Securities, L.P.
National Capital Companies, LLC
================================================================================
Exhibit IV-2
Hopkinsville Federal Savings Bank
Hopkinsville, Kentucky
SELECTED FINANCIAL AND MARKET STATISTICS
Comparable Group
- ------------------------------------------------------------------------------------------------------------------------------------
Current Tangible
Market Price/ Price/ Price/Tang Price/ Publicly Rep
Price Value LTM EPS Book Value Book Value Assets Book Value
Short Name ($) ($M) (x) (%) (%) (%) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Ameriana Bancorp 20.000 64.63 17.86 146.74 146.84 16.44 13.62
First Bancshares Inc. 26.250 28.68 15.44 126.57 126.57 17.62 20.74
FFW Corp. 35.000 25.02 14.23 142.05 156.53 13.79 22.36
Wood Bancorp Inc. 18.625 39.49 18.44 190.63 190.63 23.70 9.77
Industrial Bancorp 17.250 89.23 17.08 146.68 146.68 25.20 11.76
Landmark Bancshares Inc. # 24.000 41.06 17.46 130.51 130.51 18.00 18.39
MBLA Financial Corp. 25.250 32.00 18.84 112.98 112.98 14.30 22.35
MFB Corp. 23.250 38.38 20.39 114.48 114.48 15.00 20.31
Milton Federal Financial Corp. 15.000 34.57 23.81 121.85 121.85 16.47 12.31
Midwest Bancshares Inc. 51.000 17.30 15.27 166.94 166.94 11.55 30.55
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE 25.56 41.04 17.88 139.94 141.40 17.21 18.22
MEDIAN 23.63 36.48 17.66 136.28 138.60 16.46 19.35
- ------------------------------------------------------------------------------------------------------------------------------------
# June 30, 1997 latest financial information and LTM earnings is adjusted for
the SAIF Special assessment
Current pricing information as of November 18, 1997
Financial information as of September 30, 1997
Source: SNL Securities, L.P.
Exhibit IV-2a
Hopkinsville Federal Savings Bank
Hopkinsville, Kentucky
SELECTED FINANCIAL AND MARKET STATISTICS
Comparable Group
- --------------------------------------------------------------------------------------------------------------------
Current Current 1 Month Avg One Year Avg
Net Dividend Annualized Weekly Vol/ Weekly Vol/
Income Yield Dividend Shares Out Shares Out
Short Name ($000) (%) ($) (%) (%)
- --------------------------------------------------------------------------------------------------------------------
Ameriana Bancorp 3,656 3.200 0.6400 0.50 0.51
First Bancshares Inc. 1,901 0.762 0.2000 0.23 0.83
FFW Corp. 1,735 2.057 0.7200 0.58 1.01
Wood Bancorp Inc. 2,262 2.148 0.4000 0.29 0.30
Industrial Bancorp 5,090 3.246 0.5600 0.79 1.15
Landmark Bancshares Inc. # 1,929 1.667 0.4000 0.20 0.79
MBLA Financial Corp. 1,840 1.584 0.4000 0.04 0.37
MFB Corp. 2,002 1.376 0.3200 0.59 1.06
Milton Federal Financial Corp. 1,378 4.000 0.6000 0.99 0.73
Midwest Bancshares Inc. 1,235 1.412 0.7200 3.58 0.99
- --------------------------------------------------------------------------------------------------------------------
AVERAGE 2,303 2.15 0.50 0.78 0.77
MEDIAN 1,915 1.86 0.48 0.54 0.81
- --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
LTM
Insider Institutional Shares Return on
Ownership Ownership Outstanding Avg Equity
(%) (%) (Actual) (%)
- -------------------------------------------------------------------------------------------------
Ameriana Bancorp 15.30 15.90 3,231,407 8.36
First Bancshares Inc. 13.40 0.04 1,092,554 8.49
FFW Corp. 25.72 16.10 714,847 10.54
Wood Bancorp Inc. 22.92 9.06 2,118,538 11.07
Industrial Bancorp 7.70 23.00 5,172,800 8.32
Landmark Bancshares Inc. # 23.70 33.02 1,710,666 5.95
MBLA Financial Corp. 28.25 4.38 1,268,268 6.50
MFB Corp. 18.40 24.05 1,650,567 5.63
Milton Federal Financial Corp. 6.20 14.48 2,304,836 5.08
Midwest Bancshares Inc. 33.68 0.00 339,311 12.54
- -------------------------------------------------------------------------------------------------
AVERAGE 19.53 14.00 1,960,379 8.25
MEDIAN 20.66 15.19 1,680,617 8.34
- -------------------------------------------------------------------------------------------------
# June 30, 1997 latest financial information available
Financial information as of September 30, 1997
Source: SNL Securities, L.P.
Exhibit V-1
Hopkinsville Federal Savings Bank
STANDARD CONVERSION ANALYSIS
Page 1
As of November 18, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
Comparable All Publicly
Group Traded Thrifts
PRICE MULTIPLE: Symbol Subject (As of 11/18/97) (As of 11/18/97)
Low High Average Median Average Median
- ----------------------------------------------------------------------------------------------------------------------------------
Price-to-Earnings ratio P/E 12.75 15.00 17.88 17.66 20.91 18.25
Price-to-Book ratio P/B 66.00 69.00 141.40 138.60 165.69 150.17
Price-to-Assets P/A 13.00 13.50 17.21 16.46 18.52 16.63
- ------------------------------------------------------------------------
PARAMETERS SYMBOL VALUE
- ------------------------------------------------------------------------
Proforma Value after Conversion "V"
Pre-conversion earnings (1) "Y" $1,591,000
Est ESOP Borrowings (8%) "E" 2,440,000
Est ESOP Borrowing Rate (2) "S" 5.61%
Est Amort. of ESOP Borrowings "T" 8
Pre-Conversion Tangible Book Value (3) "B" 18,732,000
Pre-Conversion Assets (3) "A" 202,009,000
Reinvestment Rate (4) "R" 4.29%
Est Conversion Expenses (5) "X" 700,000
Management Recognition Plan Amount (4%) "M" 1,220,000
Management Recognition Plan Expense "N" 244,000
Proceeds not Reinvested "Z" 2,570,000
Projected Dividend Amount "DA" 0
Projected Dividend Yield "DY" 0.00%
Tax Rate (State and Federal) 34.00%
(1) LTM earnings as of June 30, 1997 (w/o SAIF assessment).
(2) Based upon prime at 8.5% rate less the effective tax rate.
(3) As of June 30, 1997.
(4) Net return assumes a reinvestment rate of 6.5%, the estimated incremental
net assets yield for the Company for the most recent period, less the an
estimated tax effect.
(5) Estimated total costs for the conversion.
Hopkinsville Federal Savings Bank
STANDARD CONVERSION ANALYSIS
Page 2
Formula
PRICE-TO-EARNINGS CALCULATION
low 28,015,045 P/E [Y-R(X+Z)-ES-(1-Tax)E/T-(1-Tax)N)]
high 32,958,876 V = ----------------------------
average 30,486,961 1-(P/E)R
PRICE-TO-BOOK CALCULATION
low 27,898,588 P/B (B-X-E-M)
high 31,989,290 V = -------------
average 29,943,939 1-P/B
PRICE-TO-ASSETS CALCULATION
low 30,080,655 P/A (A-X)
high 31,237,603 V = -------------
average 30,659,129 1-P/A
SUMMARY ESTIMATE
===========================================================
As of November 18, 1997 $30,500,000
===========================================================
Allowable Range
from 85% -- $25,925,000
to 115% or -- $35,075,000
Exhibit V-2
Hopkinsville Federal Savings Bank
PROFORMA EFFECT OF CONVERSION PROCEEDS
Estimated Conversion Proceeds $30,500,000
(Midpoint of conversion range)
Less
Selling Expenses ($700,000)
--------------
Conversion Proceeds $29,800,000
ESOP Deduction ($2,440,000)
MRP Deduction ($1,220,000)
--------------
Estimated Net Capital Addition from Conversion $26,140,000
Estimated Additional Income from Conversion Process
- ---------------------------------------------------
Conversion Proceeds (1) $27,360,000
Estimated Incremental Rate of Return 4.29%
--------------
$1,173,744
Less Amortization of ESOP Borrowing, net of taxes ($201,300)
Less ESOP Borrowing Expense, net of taxes (136,884)
Less Management Recognition Program Expense ($161,040)
--------------
Estimated Net Earnings Increase $674,520
(1) less ESOP
-----------------------------------------------
Before Conversion After Conversion
-----------------------------------------------
ESTIMATED PROFORMA EARNINGS
Normalized Earnings (annualized) $1,591,000 $2,265,520
Return on Assets 0.79% 0.99%
----------------------------------------------------------------------------
ESTIMATED PROFORMA NET WORTH Before Conversion Conversion Proceeds After Conversion
----------------------------------------------------------------------------
As of September 30, 1997 $18,732,000 $26,140,000 $44,872,000
----------------------------------------------------------------------------
ESTIMATED PROFORMA ASSETS Before Conversion Conversion Proceeds After Conversion
----------------------------------------------------------------------------
As of September 30, 1997 $202,009,000 $26,140,000 $228,149,000
Exhibit V-3
Hopkinsville Federal Savings Bank
PROFORMA EFFECT OF STANDARD CONVERSION
------------------------------------------------------------------------
Minimum Midpoint Maximum Super Max
------------------------------------------------------------------------
Estimated Gross Stock Sale Proceeds 25,925,000 30,500,000 35,075,000 40,336,250
Estimated Expenses (1) 700,000 700,000 700,000 700,000
--------------- --------------- --------------- ---------------
Estimated Net Conversion Proceeds 25,225,000 29,800,000 34,375,000 39,636,250
ESTIMATED PROFORMA NET WORTH
Tangible Net Worth as of September 30, 1997 18,732,000 18,732,000 18,732,000 18,732,000
Conversion Proceeds 25,225,000 29,800,000 34,375,000 39,636,250
--------------- --------------- --------------- ---------------
Total 43,957,000 48,532,000 53,107,000 58,368,250
Less ESOP Debt (2) 2,074,000 2,440,000 2,806,000 3,226,900
Less MRP Obligation (2) 1,037,000 1,220,000 1,403,000 1,613,450
--------------- --------------- --------------- ---------------
Est. Proforma Tangible Net Worth 40,846,000 44,872,000 48,898,000 53,527,900
ESTIMATED PROFORMA EARNINGS
Normalized Earnings (annualized) 1,591,000 1,591,000 1,591,000 1,591,000
Incremental Earnings (3) 993,178 1,173,744 1,354,310 1,561,961
--------------- --------------- --------------- ---------------
Sub-total 2,584,178 2,764,744 2,945,310 3,152,961
Less ESOP Adjustment (4) 287,456 338,184 388,912 447,248
Less MRP Adjustment (4) 136,884 161,040 185,196 212,975
--------------- --------------- --------------- ---------------
Estimated Proforma Annual Earnings 2,159,838 2,265,520 2,371,203 2,492,738
ESTIMATED PROFORMA NET ASSETS
Total as of September 30, 1997 202,009,000 202,009,000 202,009,000 202,009,000
Conversion Proceeds 23,151,000 27,360,000 31,569,000 36,409,350
Less MRP Obligation 1,037,000 1,220,000 1,403,000 1,613,450
--------------- --------------- --------------- ---------------
Estimated Proforma Assets 224,123,000 228,149,000 232,175,000 236,804,900
- --------------------------------------------------------------------------------------------------------------------------------
ESTIMATED PROFORMA RATIOS, PRICE TO:
Tangible Net Worth 63.47% 67.97% 71.73% 76.36%
Earnings 12.00 13.46 14.79 16.18
Assets 11.57% 13.37% 15.11% 17.03%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
EST. PROFORMA RETURN ON ASSETS 0.98% 0.98% 1.02% 1.05%
EST. PROFORMA TANGIBLE NET WORTH to ASSETS 18.22% 19.67% 21.06% 22.60%
- --------------------------------------------------------------------------------------------------------------------------------
(1) Estimated issuance costs including legal, accounting and other direct
expenses
(2) Estimated
(3) Estimated 6.5% incremental net return on earning assets less the effective
tax rate
(4) Tax effected
Exhibit V-4
Hopkinsville Federal Savings Bank
Hopkinsville, Kentucky
Proforma Pricing Multiples Compared to Comparable Group *
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Institution Comparable (Discount) Premium
Proforma Group -- From Comparable Group --
Value Average Median Average Median
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METHOD
At the Minimum
Price-to-Earnings (x) 12.00 17.88 17.66 -32.87% -32.03%
Price-to-Book (%) 63.47 141.40 138.60 -55.11% -54.21%
Price-to-Assets (%) 11.57 17.21 16.46 -32.79% -29.72%
At the Midpoint
Price-to-Earnings (x) 13.46 17.88 17.66 -24.71% -23.77%
Price-to-Book (%) 67.97 141.40 138.60 -51.93% -50.96%
Price-to-Assets (%) 13.37 17.21 16.46 -22.32% -18.78%
At the Maximum
Price-to-Earnings (x) 14.79 17.88 17.66 -17.27% -16.24%
Price-to-Book (%) 71.73 141.40 138.60 -49.27% -48.25%
Price-to-Assets (%) 15.11 17.21 16.46 -12.22% -8.22%
At the Super Max
Price-to-Earnings (x) 16.18 17.88 17.66 -9.50% -8.37%
Price-to-Book (%) 75.36 141.40 138.60 -46.71% -45.63%
Price-to-Assets (%) 17.03 17.21 16.46 -1.03% 3.48%