Exhibit 99.1
CONVERSION VALUATION APPRAISAL REPORT
Prepared For:
Preferred Savings Bank
and
PS Financial, Inc.
Chicago, Illinois
As Of:
August 9, 1996
Prepared By:
Keller & Company, Inc.
555 Metro Place North
Suite 524
Dublin, Ohio 43017
(614) 766-1426
KELLER & COMPANY
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
Preferred Savings Bank
and
PS Financial Inc.
Chicago, Illinois
As Of:
August 9, 1996
Prepared By:
Michael R. Keller
President
KELLER & COMPANY, INC.
555 METRO PLACE NORTH
SUITE 524
DUBLIN, OHIO 43017
(614) 766-1426
(614) 766-1459 FAX
August 30, 1996
Board of Directors
Preferred Savings Bank
4800 South Pulaski Road
Chicago, IL 60632
Gentlemen:
We hereby submit an independent appraisal of the pro forma market value of the
to-be-issued stock of PS Financial, Inc. (the "Corporation"), which is the newly
formed holding company of Preferred Savings Bank, Chicago, Illinois ("Preferred"
or the "Bank"). The Corporation will hold all of the shares of the common stock
of the Bank. Such stock is to be issued in connection with the Bank's conversion
from a federally chartered mutual savings bank to a federally chartered stock
savings bank in accordance with the Bank's Plan of Conversion. This appraisal
was prepared and provided to the Bank in accordance with the conversion
requirements and regulations of the Office of Thrift Supervision of the United
States Department of the Treasury.
Keller & Company, Inc. is an independent financial institution consulting firm
that serves both banks and thrift institutions. The firm is a full-service
consulting organization, as described in more detail in Exhibit A, specializing
in market studies, business and strategic plans, stock valuations, conversion
appraisals, and fairness opinions for thrift institutions and banks. The firm
has affirmed its independence in this transaction with the preparation of its
Affidavit of Independence, a copy of which is included as Exhibit C.
Our appraisal is based on the assumption that the data provided to us by
Preferred and the material provided by the independent auditor, Crowe Chizek and
Company, L.L.P., Oakbrook Terrace, Illinois, are both accurate and complete. We
did not verify the financial statements provided to us, nor did we conduct
independent valuations of the Bank's assets and liabilities. We have also used
information from other public sources, but we cannot assure the accuracy of such
material.
Board of Directors
Preferred Savings Bank
August 30, 1996
Page 2
In the completion of this appraisal, we held discussions with the management of
Preferred, with the law firm of Silver, Freedman & Taff, L.L.P., Washington, DC,
the Bank's conversion counsel, and with Crowe Chizek and Company, L.L.P.
Further, we viewed the Bank's local economy and primary market area.
This valuation must not be considered as a recommendation as to the purchase of
stock in the Corporation, and we can provide no guarantee or assurance that
any person who purchases shares of the Corporation's stock in this conversion
will be able to later sell such shares at a price equivalent to the price
designated in this appraisal.
Our valuation will be updated as required and will give consideration to any new
developments in the Bank's operation that have an impact on operations or
financial condition. Further, we will give consideration to any changes in
general market conditions and to specific changes in the market for
publicly-traded thrift institutions. Based on the material impact of any such
changes on the pro forma market value of the Bank as determined by this firm,
we will proceed to make necessary adjustments to the Bank's appraised value in
such appraisal update.
It is our opinion that as of August 9, 1996, the pro forma market value or
appraised value of the Corporation is $16,500,000. Further, a range for this
valuation is from a minimum of $14,025,000 to a maximum of $19,975,000, with a
super-maximum of $21,821,250.
Very truly yours,
KELLER & COMPANY, INC.
/s/ Michael R. Keller
Michael R. Keller
President
TABLE OF CONTENTS
PAGE
INTRODUCTION 1
I. Description of Preferred Savings Bank
General 4
Performance Overview 9
Income and Expense 11
Yields and Costs 17
Interest Rate Sensitivity 19
Lending Activities 21
Non-Performing Assets 24
Investments 26
Deposit Activities 26
Borrowings 27
Subsidiaries 28
Office Properties 28
Management 28
II. Description of Primary Market Area 29
III. Comparable Group Selection
Introduction 34
General Parameters
Merger/Acquisition 35
Mutual Holding Companies 36
Trading Exchange 36
IPO Date 37
Geographic Location 37
Asset Size 38
Balance Sheet Parameters
Introduction 39
Cash and Investments to Assets 39
Mortgage-Backed Securities to Assets 40
One- to Four Family Loans to Assets 40
Total Net Loans to Assets 41
Total Net Loans and Mortgage-Backed Securities to Assets 41
Advances to Assets 41
Equity to Assets 42
Performance Parameters
Introduction 42
TABLE OF CONTENTS (cont.)
PAGE
III. Comparable Group Selection (cont.)
Performance Parameters (cont.)
Return on Average Assets 43
Return on Average Equity 43
Net Interest Margin 44
Operating Expenses to Assets 44
Noninterest Income to Assets 45
Asset Quality Parameters
Introduction 45
Nonperforming Assets to Asset Ratio 46
Repossessed Assets to Assets 46
Loans Loss Reserves to Assets 46
The Comparable Group 47
Summary of Comparable Group Institutions 48
IV. Analysis of Financial Performance 51
V. Market Value Adjustments
Earnings Performance 54
Market Area 57
Financial Condition 58
Dividend Payments 60
Subscription Interest 60
Liquidity of Stock 61
Management 62
Marketing of the Issue 62
VI. Valuation Methods 64
Price to Book Value Method 65
Price to Earnings Method 66
Price to Net Assets Method 67
Valuation Conclusion 68
LIST OF EXHIBITS
NUMERICAL PAGE
EXHIBITS
1 Balance Sheet - May 31, 1996, and December 31, 1995 69
2 Balance Sheet - December 31, 1993 and 1994,
February 29, 1992, and February 29, 1993 70
3 Income Statement - Five Months ended May 31, 1995
and 1996, and Year Ended December 31, 1995 71
4 Income Statement - December 31, 1994, Ten months ended
December 31, 1993, Years ended February 29, 1992
and February 28, 1993 72
5 Selected Consolidated Financial Data 73
6 Income and Expense Trends 74
7 Normalized Earnings Trend 75
8 Performance Indicators 76
9 Volume/Rate Analysis 77
10 Yield and Cost Trends 78
11 Interest Rate Sensitivity Gap 79
12 Interest Rate Sensitivity of Net Portfolio Value (NPV) 80
13 Loan Portfolio Composition 81
14 Loan Maturity Schedule 82
15 Loan Portfolio Originations 83
16 Delinquent Loans 84
17 Nonperforming Assets 85
18 Classified Assets 86
19 Allowance for Loan Losses 87
20 Investment Portfolio Composition 88
21 Mix of Deposits 89
22 Deposit Activity 90
23 List of Key Officers and Directors 91
24 Key Demographic Data and Trends 92
25 Key Housing Data 93
26 Major Sources of Personal Income 94
27 Unemployment Rates 95
28 Market Share of Deposits 96
29 National Interest Rates 97
30 Thrift Stock Prices and Pricing Ratios 98
31 Key Financial Data and Ratios 109
32 Recently Converted Thrift Institutions 121
LIST OF EXHIBITS (cont.)
NUMERICAL PAGE
EXHIBITS
33 Acquisitions and Pending Acquisitions 122
34 Thrift Stock Prices and Pricing Ratios -
Mutual Holding Companies 124
35 Key Financial Data and Ratios -
Mutual Holding Companies 125
36 Balance Sheets Parameters -
Comparable Group Selection 126
37 Operating Performance and Asset Quality Parameters -
Comparable Group Selection 129
38 Balance Sheet Ratios -
Final Comparable Group 133
39 Operation Performance and Asset Quality Ratios
Final Comparable Group 134
40 Balance Sheet Totals - Final Comparable Group 135
41 Market Area Comparison - Final Comparable Group 136
42 Balance Sheet - Asset Composition
Most Recent Quarter 137
43 Balance Sheet - Liability and Equity
Most Recent Quarter 138
44 Income and Expense Comparison
Trailing Four Quarters 139
45 Income and Expense Comparison as a Percent of
Average Assets - Trailing Four Quarters 140
46 Yields, Costs & Earnings Ratios
Trailing Four Quarters 141
47 Dividends, Reserves and Supplemental Data 142
48 Market Pricings and Financial Ratios - Stock Prices
Comparable Group 143
49 Valuation Analysis and Conclusions 144
50 Pro Forma Minimum Valuation 145
51 Pro Forma Mid-Point Valuation 146
52 Pro Forma Maximum Valuation 147
53 Pro Forma Superrange Valuation 148
54 Summary of Valuation Premium or Discount 149
ALPHABETICAL EXHIBITS
PAGE
A Background and Qualifications 150
B RB 20 Certification 154
C Affidavit of Independence 155
INTRODUCTION
Keller & Company, Inc., an independent appraisal firm for financial
institutions, has prepared this Conversion Appraisal Report ("Report") which
provides the pro forma market value of the to-be-issued common stock of PS
Financial, Inc. (the "Corporation"), a Delaware corporation, formed as a holding
company to own all of the to-be-issued shares of common stock of Preferred
Savings Bank, Chicago, Illinois, ("Preferred" or the "Bank"). The stock is to be
issued in connection with the Bank's Application for Approval of Conversion from
a federally chartered mutual savings bank to a federally chartered stock savings
bank. The Application is being filed with the Office of Thrift Supervision
("OTS") of the Department of the Treasury and the Securities and Exchange
Commission ("SEC"). In accordance with the Bank's conversion, there will be a
simultaneous issuance of all the Bank's stock to the Corporation, which will be
formed by the Bank. Such Application for Conversion has been reviewed by us,
including the Prospectus and related documents, and discussed with the Bank's
management and the Bank's conversion counsel, Silver, Freedman & Taff,
Washington, D.C.
This conversion appraisal was prepared based on the guidelines provided
by OTS entitled "Guidelines for Appraisal Reports for the Valuation of Savings
Institutions Converting from the Mutual to Stock Form of Organization", in
accordance with the OTS application requirements of Regulation ss.563b and the
OTS's Revised Guidelines for Appraisal Reports, and represents a full appraisal
report. The Report provides detailed exhibits based on the Revised Guidelines
and a discussion on each of the fourteen factors that need to be considered. Our
valuation will be updated in accordance with the Revised Guidelines and will
consider any changes in market conditions for thrift institutions.
The pro forma market value is defined as the price at which the stock
of the Corporation after conversion would change hands between a typical willing
buyer and a typical willing seller when the former is not under any compulsion
to buy and the latter
1
Introduction (cont.)
is not under any compulsion to sell, and with both parties having reasonable
knowledge of relevant facts in an arms-length transaction. The appraisal assumes
the Bank is a going concern and that the shares issued by the Corporation in the
conversion are sold in non-control blocks.
In preparing this conversion appraisal, we have reviewed the audited
financial statements for the five fiscal periods ended February 29, 1992,
February 28, 1993, and December 31, 1993 through 1995, as well as the unaudited
financial statements for the five months ended May 31, 1996, and discussed them
with Preferred's management and with Preferred's independent auditors, Crowe,
Chizek and Company, LLP. We have also discussed and reviewed with management
other financial matters. We have reviewed the Corporation's preliminary Form S-1
and the Bank's preliminary Form AC and discussed them with management and with
the Bank's conversion counsel.
We have visited Preferred's home office and two branches and have
traveled the surrounding area. We have studied the economic and demographic
characteristics of the market area, where the Bank's offices are located, and
the Bank's primary market area relative to Illinois and the United States. We
have also examined the competitive environment within which Preferred operates,
giving consideration to the area's key characteristics, both positive and
negative.
We have given consideration to the market conditions for securities in
general and for publicly-traded thrift stocks in particular. We have examined
the performance of selected publicly-traded thrift institutions and compared the
performance of Preferred to those selected institutions.
2
Introduction (cont.)
Our valuation is not intended to represent and must not be interpreted
to be a recommendation of any kind as to the desirability of purchasing the
to-be-outstanding shares of common stock of the Corporation. Giving
consideration to the fact that this appraisal is based on numerous factors that
can change over time, we can provide no assurance that any person who purchases
the stock of the Corporation in this mutual-to-stock conversion will
subsequently be able to sell such shares at prices similar to the pro forma
market value of the Corporation as determined in this conversion appraisal.
3
I. DESCRIPTION OF PREFERRED SAVINGS BANK
GENERAL
Preferred Savings Bank, Chicago, Illinois, was organized in 1891 as an
Illinois savings and loan association with the name of New City Savings and Loan
Association, later changing its name to Preferred Savings and Loan Association.
The Bank converted to a state savings bank in 1993, changing its name to
Preferred Savings Bank and changed to a federally chartered savings bank in
August, 1996, keeping its name.
Preferred conducts its business from its home office in Chicago,
Illinois, located to the southwest of downtown Chicago, near Midway Airport. The
Bank's market area extends into Cook County, with its savings market located in
the vicinity of the home office. Preferred's deposits are insured up to
applicable limits by the Federal Deposit Insurance Corporation ("FDIC") in the
Savings Association Insurance Fund ("SAIF"). The Bank is also subject to certain
reserve requirements of the Board of Governors of the Federal Reserve Bank (the
"FRB"). Preferred is a member of the Federal Home Loan Bank (the "FHLB") of
Chicago and is regulated by the OTS, and by the FDIC. As of May 31, 1996,
Preferred had assets of $54,853,000, deposits of $41,945,000, and equity of
$12,029,000.
In the past five years, legislation has had an impact on the operations
in the financial institution industry. In 1989, the Financial Institution
Reform, Recovery, and Enforcement Act ("FIRREA") became effective and put into
place more stringent supervisory standards and higher capital requirements for
the thrift industry. FIRREA established new capital requirements and
strengthened OTS' enforcement powers. These capital requirements continue today
under the FDIC and the FRB and include a tier one capital requirement of 4.0
percent of total assets, and a risk-based capital requirement of 8.0 percent of
risk-weighted assets. OTS now has the power to assess civil money penalties and
issue cease and desist orders for violations of regulations deemed unsafe and
unsound practices.
4
General (cont.)
FIRREA also resulted in an increase in deposit insurance premiums which
thrifts must pay to the FDIC. A plan for a one-time premium of 0.70 percent to
0.75 percent of deposits as of June 30, 1996, to capitalize the SAIF does exist,
and such an increase would have an adverse effect on Preferred's equity and net
income. Further, there has been a recent significant decrease in premiums on
Bank Insurance Fund ("BIF") deposits, which has an adverse competitive impact on
Preferred and could affect its ability to compete effectively with BIF-insured
banks for deposits. Such impact could result in a downward impact on prices of
publicly traded thrift institutions.
FIRREA's objective was strengthened when the Federal Deposit Insurance
Bank Improvement Act of 1991 ("FDICIA") was passed, resulting in additional
provisions relating to thrift institutions. FDICIA provided for the
recapitalization of BIF. FDICIA requires federally-insured financial
institutions to be examined at least annually and submit independently audited
financial reports based on the size of the institution. Preferred meets the
standards for a well capitalized institution.
Preferred is a community-oriented institution which has been
principally engaged in the business of serving the financial needs of the public
in its local communities and throughout its market area. Preferred has been
actively and consistently involved in the origination of residential mortgage
loans for the purchase of one- to four-family dwellings, comprising 52.2 percent
of its loan originations during the five months ended May 31, 1996, and 71.1
percent of its loan originations during the fiscal year ended December 31, 1995.
At May 31, 1996, 71.8 percent of its gross loans consisted of residential real
estate loans on one- to four-family dwellings, not including residential
construction loans, compared to a higher 73.4 percent at December 31, 1995, with
the primary source of its funds being retail deposits from residents in its
local communities. The Bank is also an originator of multifamily loans,
commercial real estate loans, construction and land loans and also offers
consumer loans on a less active basis. Multifamily loans represented
5
General (cont.)
a strong 18.1 percent of gross loans at May 31, 1996. Commercial real estate
loans represented 9.4 percent of gross loans. Consumer loans include only loans
on savings accounts and represented a very modest 0.04 percent share of the
Bank's total loans at May 31, 1996.
The Bank had a strong $11.4 million, or 20.6 percent of its assets in
U.S. government and federal agency securities and FHLB stock. The Bank had an
additional $3.9 million, or 7.0 percent of its assets, in mortgage-backed
securities, and $3.4 million in interest-bearing deposits with the combined
total of investment securities, mortgage-backed securities and interest-bearing
deposits being $18.7 million or 33.7 percent of assets. Deposits and retained
earnings have been the sources of funds for the Bank's lending and investment
activities.
The management of Preferred is aware of the emphasis on matching the
maturities of assets and liabilities and monitoring the Bank's interest rate
sensitivity position and market value of portfolio equity. The Bank understands
the nature of interest rate risk and the potential earnings impact during times
of rapidly changing rates, either rising or falling. Preferred also recognizes
the need and importance of attaining a competitive net interest margin due to
its more moderate levels of fee and other income, and has focused on
strengthening its earnings with less emphasis on matching maturities of assets
and liabilities.
The Bank's gross amount of stock to be sold in the conversion will be
$16,500,000 or 1,650,000 shares at $10 per share based on the midpoint of the
appraised value, with net conversion proceeds of $15,980,000 reflecting
conversion expenses of $520,000. The actual cash proceeds to the Bank of $8.0
million will represent fifty percent of the net conversion proceeds, less the
ESOP of $1,320,000, and will be invested in fixed-rate mortgage loans,
construction loans and multifamily loans over time, and initially invested in
short term investments. The Bank may also use the proceeds to expand services,
6
General (cont.)
expand operations or other financial service organizations, diversification into
other businesses, or for any other purposes authorized by law. The Holding
Company will use its proceeds to fund the ESOP and to invest in short- and
intermediate-term government securities.
Preferred has seen modest overall deposit growth over the past five
fiscal years with deposits increasing 8.2 percent from February 29, 1992, to
December 31, 1995, or an average of 2.0 percent per year. From December 31,
1995, to May 31, 1996, deposits increased a stronger 2.2 percent or 5.3 percent,
annualized, compared to a 2.5 percent growth rate in 1995. The Bank anticipates
a similar 2.0 to 3.0 percent annual rate of growth in the future. The Bank has
focused on maintaining a moderate residential real estate loan portfolio during
the past five years, increasing its level of investments and mortgage-backed
securities, monitoring its earnings and increasing its capital to assets ratio.
Equity to assets increased from 17.01 percent of assets at February 29, 1992, to
21.80 percent at December 31, 1995, and to 21.75 percent at May 31, 1996.
Preferred's primary lending strategy has been to originate and retain
fixed-rate residential mortgage loans with emphasis on one- to four-family
fixed-rate mortgage loans with a higher level of multifamily loans and
commercial real estate loans.
Preferred's share of one- to four-family mortgage loans has decreased,
declining from 76.5 percent of gross loans at February 29, 1992, to 71.8 percent
as of May 31, 1996. Commercial real loans increased from 4.4 percent of gross
loans at February 29, 1992, to 9.4 percent at May 31, 1996. Multifamily loans
decreased from 18.8 percent of gross loans at February 29, 1992, to 18.1 percent
at May 31, 1996. The decrease in multifamily and one- to four family loans was
offset by the Bank's increase in commercial real estate loans. The Bank's share
of consumer loans also witnessed a decrease from 0.3 percent at February 29,
1992, to 0.04 percent at May 31, 1996.
7
General (cont.)
Management's internal strategy has also included continued emphasis on
maintaining an adequate relative to problem loans and losses. At February 29,
1992, Preferred had $43,000 in its loan loss allowance or 0.14 percent of total
loans, which increased to $136,000 and represented a higher 0.38 percent of
total loans at May 31, 1996.
Interest income from loans and investments has been the basis of
earnings with the net interest margin being the key determinant of net earnings.
With a dependence on net interest margin for earnings, current management will
continue to focus on maintaining the Bank's net interest margin without
undertaking excessive credit risk and will not pursue any significant change in
its interest rate risk position.
8
PERFORMANCE OVERVIEW
Preferred's financial position over the past five fiscal periods of
February 29, 1992, through December 31, 1995, and for the five months ended May
31, 1996, is highlighted through the use of selected financial data in Exhibit
5. Preferred has focused on strengthening its equity position, controlling its
overhead ratio, increasing its general valuation allowance, and maintaining its
net interest margin. Preferred has experienced a moderate but overall steady
rise in assets from 1991 to 1995 and a smaller rate of increase in deposits with
a greater than average increase in equity over the past five fiscal years. The
resultant impact has been an increase in the Bank's equity to assets ratio.
Preferred witnessed a total increase in assets of $7.0 million or 15.1
percent for the period of February 29, 1992, to December 31, 1995, representing
an average annual increase in assets of 3.8 percent. For the year ended December
31, 1995, assets increased $1.9 million or 3.7 percent. For the five months
ended May 31, 1996, the Bank's assets increased $1.3 million or 2.5 percent, or
6.0 percent, annualized. Over the past five fiscal periods, the Bank experienced
its largest dollar rise in assets of $3.9 million in fiscal year 1993, which
represented a 7.8 percent increase in assets due to a rise in deposits and
strong earnings. This increase was preceded by a $3.5 million or 7.5 percent
increase in assets in fiscal year 1992, a decrease in 1994 and a $1.9 million
increase, or 3.7 percent, in 1995.
The Bank's net loan portfolio, including mortgage loans and
non-mortgage loans, increased from $31.7 million at February 29, 1992, to $34.5
million at December 31, 1995, and represented a total increase of $2.8 million,
or 8.8 percent. The average annual increase during that period was 2.2 percent.
That increase was the result of high levels of loan originations in fiscal years
1994 and 1995, combined with lower levels of principal repayments. The increase
in loans at Preferred was accented by the Bank's growth in investment securities
and mortgage-backed securities. For the year ended December 31, 1995, loans
increased $1.6 million or 5.0 percent. For the five months ended May 31, 1996,
net loans then increased $1.2 million or 3.6 percent.
9
Performance Overview (cont.)
Preferred has pursued obtaining funds through deposit growth in
accordance with the demand for loans, and has made no use of FHLB advances. The
Bank's rates for savings and emphasis on personal service in its local market
have been the source of retail deposits. Deposits increased moderately from 1991
to 1992, followed by a modest increase in fiscal 1993 and a decrease in 1994,
and then a modest increase in 1995, with an average annual rate of increase of
2.0 percent from February 29, 1992, to December 31, 1995. For the five months
ended May 31, 1996, deposits increased by $898,000 or 2.2 percent, annualized,
to 5.3 percent. The Bank's strongest fiscal year deposit growth was in fiscal
year 1992, when deposits increased $2.4 million or 6.4 percent.
Preferred has been able to increase its equity each fiscal year from
1991 through 1995. At February 29, 1992, the Bank had equity (GAAP basis) of
$7.9 million representing a 16.99 percent equity to assets ratio, increasing to
$11.7 million at December 31, 1995, and representing a 21.91 percent equity to
assets ratio. At May 31, 1996, equity was a higher $12.0 million or 21.93
percent. The rise in the equity to assets ratio is primarily the result of the
Bank's strong earnings performance in 1991 through 1995. Equity increased 48.4
percent from February 29, 1992, to December 31, 1995, representing an average
annual increase of 12.1 percent, which is below industry average due to the
Bank's higher equity position, and increased 2.6 percent for the five months
ended May 31, 1996, or 6.2 percent, annually.
10
INCOME AND EXPENSE
Exhibit 6 presents selected operating data for Preferred, reflecting
the Bank's income and expense trends. This table provides selected audited
income and expense figures in dollars for the fiscal periods of 1991 through
1995 and unaudited income and expense figures for the five months ended May 31,
1996.
Preferred has witnessed a slight increase in its dollar level of
interest income from fiscal 1991 to fiscal 1995, ranging from a high of $4.3
million in 1995 to a low of $3.4 million in the ten month period ended December
31, 1993. The five year trend indicated almost no change, increasing from
$4,265,000 in 1991 to $4,268,000 in 1995. In fiscal year 1995, interest income
increased $414,000, or 10.7 percent, to $4.3 million. For the five months ended
May 31, 1996, interest income was $1.9 million, compared to $1.8 million for the
five months ended May 31, 1995, suggesting a continuation of the fiscal 1995
rising trend but at a reduced pace. The overall increase in interest income was
due primarily to the Bank's increase in rate, further accented by an increase
due to volume.
The Bank's interest expense experienced a declining trend from fiscal
year 1991 to 1994, followed by an increase in 1995. Interest expense decreased
$844,000, or 39.2 percent, from 1991 to 1994, compared to a decrease in interest
income of $411,000, or 9.6 percent, for the same time period. Interest expense
then increased $322,000 or 24.5 percent from 1994 to 1995, compared to an
increase in interest income of $414,000 or 10.7 percent as discussed above. Such
high increase in interest expense, more than offset by the increase in interest
income, resulted in a modest increase in annual net interest income to
$2,636,000 for the fiscal year ended December 31, 1995. Net interest income
increased from $2,111,000 in 1991 to $2,449,000 in 1992, followed by a decrease
to $2,232,000 in the ten month fiscal 1993 period, and then increases in 1994
and 1995. For the five months ended May 31, 1996, Preferred's actual net
interest income was $1,128,000, which was almost identical to the $1,126,000 for
the five months ended May 31, 1995.
11
Income and Expense (cont.)
The Bank has made provisions for loan losses in four of the past five
fiscal periods of 1991 through 1995 in the five months ended May 31, 1996. The
amounts of those provisions were determined in recognition of the Bank's level
of nonperforming assets, charge-offs and repossessed assets, and also relative
to the increase in provisions in the industry to strengthen the level of general
valuation allowance. The loan loss provisions were $24,000 in fiscal 1991,
$24,000 in fiscal 1992, $27,000 in fiscal 1993, $42,000 in fiscal 1994, and
$50,000 in the five months ended May 31, 1996. The impact of these loan loss
provisions has been to provide Preferred with a general valuation allowance of
$186,000 at May 31, 1996, or 0.51 percent of net loans and 31.0 percent of
nonperforming assets.
Total other income or noninterest income, excluding gains and losses,
indicated modest levels in fiscal years 1991 to 1995. The highest level of
noninterest income was in fiscal year 1994 at $76,000 or 0.14 percent of average
assets and the lowest level at $39,000 was in fiscal 1992, representing 0.08
percent of average assets. The low levels of noninterest income were due to the
Bank's absence of checking accounts and thus service charges on these accounts.
The average noninterest income level for the past five fiscal years was $52,000
or 0.10 percent of average assets. Noninterest income consisted primarily of
loan related fees and other charges.
The Bank did have a significant loss on the sale of securities in 1994
of $365,000, preceded by a loss of $28,000 in fiscal 1993 and a gain of $89,000
in fiscal 1991. The Bank had no gains or losses in fiscal 1992, 1995 or during
the five months ended May 31, 1996.
The Bank's general and administrative expenses or noninterest expenses
increased from $777,000 for the fiscal year of 1991 to $1,009,000 for the fiscal
year ended December 31, 1995. The dollar increase in noninterest expenses was
$232,000 from 1991 to 1995, representing an average annual increase of $58,000
or 7.1 percent. The average
12
Income and Expense (cont.)
annual increase in other expenses was due to the Bank's normal rise in overhead
expenses and in 1995, the increase was primarily the result of the termination
of the Bank's pension plan which increased compensation and benefits expense by
$132,000. On a percent of assets basis, operating expenses increased from 1.53
percent of average assets for the fiscal year ended February 29, 1992, to 1.91
percent for the fiscal year ended December 31, 1995, which was the Bank's
highest ratio during the past five years but lower than current industry
averages of approximately 2.35 percent. Excluding the one-time pension expense,
this ratio would have been a lower 1.67 percent. For the five months ended May
31, 1996, Preferred's ratio of operating expenses to average assets was a lower
1.55 percent.
The net earnings position of Preferred has indicated profitable
performance in each of the past five fiscal periods of 1991 through 1995, and
for the five months ended May 31, 1996. The annual net income figures for the
past five fiscal periods of 1991, 1992, 1993, 1994 and 1995 have been $883,000,
$1,001,000, $942,000, $758,000, and $1,055,000, representing returns on average
assets of 1.74 percent, 1.96 percent, 1.83 percent, 1.46 percent, and 1.99
percent, respectively. The average return on assets for the past five fiscal
periods was 1.80 percent. For the five months ended May 31, 1996, net earnings
were $440,000, representing an annualized return on assets of 1.94 percent.
Exhibit 7 provides the Bank's normalized earnings or core earnings for
fiscal years 1993 to 1995 and for the twelve months ended May 31, 1996. The
Bank's normalized earnings eliminate any nonrecurring income and expense items.
In fiscal years 1993 and 1994, there were income adjustments to eliminate the
Bank's losses on sale of securities. The result of these adjustments was a core
income of $975,000 in 1993, compared to actual net income of $942,000, and core
income of $1,061,000 in 1994 compared to actual net income of $758,000. For the
fiscal year 1995 and for the twelve months ended May 31, 1996, there were no
adjustments to income or expense.
13
Income and Expense (cont.)
The key performance indicators comprised of selected operating ratios,
asset quality ratios and capital ratios are shown in Exhibit 8 to reflect the
results of performance. The Bank's return on assets increased from 1.74 percent
in fiscal year 1991 to 1.96 percent in fiscal year 1992, decreasing to 1.83
percent in fiscal period 1993, then a lower 1.46 percent in 1994 and 1.99
percent in fiscal year 1995.
The Bank's net interest rate spread strengthened from 2.58 percent in
fiscal year 1991 to 3.96 percent in fiscal year 1992, then increased in 1993 to
4.78 percent before decreasing to 4.38 percent in 1994 and 4.26 percent in 1995.
For the five months ended May 31, 1996, annualized, net interest spread was a
lower 4.20 percent. The Bank's net interest margin indicated a similar trend,
increasing from 4.25 percent in fiscal year 1991 to 4.88 percent in fiscal year
1992, increasing to 5.39 percent in 1993, and then decreasing to 5.13 percent in
1995 and decreasing further to 5.09 percent for the five months ended May 31,
1996. Preferred's net interest rate spread increased 138 basis points in 1992 to
3.96 percent from 2.58 percent in 1991 and then increased 82 basis points in
1993 to 4.78 percent as the result of a decrease in interest expense. Net
interest rate spread then decreased 40 basis points to 4.38 percent for fiscal
year 1994 and decreased another 12 basis points to 4.26 percent for the fiscal
year ended December 31, 1995. The Bank's net interest margin followed a similar
trend, increasing a strong 63 basis points to 4.88 percent in 1992 and then
increased 51 basis points to 5.39 percent in 1993. Net interest margin decreased
36 basis points to 5.03 percent in 1994 and then increased to 5.13 percent in
1995. For the five months ended May 31, 1996, Preferred's annualized net
interest spread was a lower 4.20 percent, and its net interest margin was a
lower 5.09 percent.
The Bank's return on average equity increased from 1991 to 1992, but
decreased in 1993 through 1995. The return on average equity increased from
11.22 percent in 1991 to 11.82 percent in fiscal year 1992, and then down to
10.21 percent in fiscal year 1993. The return on equity then decreased to 7.53
percent in fiscal year 1994, and then
14
Income and Expense (cont.)
increased to 9.42 percent for the fiscal year ended December 31, 1995. For the
five months ended May 31, 1996, annualized, return on average equity was a lower
8.88 percent.
Preferred's ratio of interest-earning assets to interest-bearing
liabilities decreased moderately from 138.71 percent at February 29, 1992, to
127.21 percent at December 31, 1995, and then up to 127.58 percent at May 31,
1996.
The Bank's ratio of non-interest expenses to average assets increased
from 1.53 percent in fiscal year 1991 to 1.91 percent in fiscal year 1995, which
was its highest ratio during the past five years and was due to an increase in
compensation and benefits due to the cost of terminating the Bank's pension
plan. The Bank's 1995 operating expense to average assets ratio would have been
a lower 1.67 percent excluding this one-time expense. For the five months ended
May 31, 1996, noninterest expenses to assets decreased to 1.56 percent. Another
key noninterest expense ratio reflecting efficiency of operation is the ratio of
noninterest expenses to net interest income and noninterest income referred to
as the "efficiency ratio". The industry norm is 60.0 percent. The Bank has been
characterized with a better efficiency ratio, which increased from 34.59 percent
in 1991 to 37.45 percent in 1995. The ratio then improved to 30.56 percent for
the five months ended May 31, 1996.
Earnings performance can be affected by an institution's asset quality
position. The ratio of nonperforming assets to total assets is a key indicator
of asset quality. Preferred witnessed a modest increase in its nonperforming
asset ratio from 1991 to 1995. Nonperforming assets consist of nonaccruing loans
and repossessed assets. The ratio of nonperforming assets to total assets was
1.45 percent at February 29, 1992, and decreased to 0.21 percent at February 28,
1993. The ratio then increased sharply during the next three fiscal years to
0.33 percent in 1993, 0.65 percent in 1994 and 1.45 percent in 1995. At May 31,
1996, Preferred's ratio of nonperforming assets to total assets decreased to
15
Income and Expense (cont.)
1.09 percent. The Bank's allowance for loan losses was 5.1 percent of
nonperforming assets at February 29, 1992, and increased moderately during the
next four fiscal years, resulting primarily from the increase in allowance for
loan losses. As a percentage of nonperforming assets, Preferred's allowance for
loan losses increased to 8.0 percent in 1992, 9.6 percent in 1993, 10.2 percent
in 1994 and 6.5 percent in 1995. During the five months ended May 31, 1996, the
ratio increased to 10.8 percent reflective of the increase in allowance for loan
losses.
Exhibit 9 provides the changes in net interest income due to rate and
volume changes for the past two fiscal periods of 1994 and 1995 and for the five
months ended May 31, 1996. In fiscal period 1994, net interest income decreased
$135,000, due to a decrease in interest income of $228,000 reduced by a $93,000
decrease in interest expense. The decrease in interest income was due to a
decrease due to a change in rate of $198,000 accented by a decrease due to
volume of $30,000. The decrease in interest expense was due to a decrease due to
volume of $7,000 accented by a decrease due to a change in rate of $86,000.
In fiscal year 1995, net interest income increased $92,000, due to a
$414,000 increase in interest income reduced by a $322,000 increase in interest
expense. The increase in interest income was due to a $275,000 increase due to
rate accented by a $139,000 increase due to volume. The increase in interest
expense was due to a $297,000 increase due to rate accented by a $25,000
increase due to volume.
For the five months ended May 31, 1996, compared to the five months
ended May 31, 1995, net interest income increased a minimal $2,000 due to a
$95,000 increase in interest income reduced by a $93,000 increase in interest
expense. The rise in interest income was due to a $91,000 increase due to volume
accented by a $4,000 increase due to rate. The rise in interest expense was
basically split with $52,000 due to a rise in rate and $41,000 due to a rise in
volume.
16
YIELDS AND COSTS
The overview of yield and cost trends for the years ended December 31,
1993 to 1995, for the five months ended May 31, 1995 and 1996, can be seen in
Exhibit 10, which offers a summary of key yields on interest-earning assets and
costs of interest-bearing liabilities.
Preferred's weighted average yield on its loan portfolio decreased 96
basis points from fiscal year 1993 to 1995, from 10.21 percent to 9.25 percent,
and then increased 11 basis points to 9.36 percent for the fine months ended May
31, 1996. The yield on mortgage-backed securities increased 394 basis points
from fiscal year 1993 to 1995 from 1.30 percent to 5.24 percent and then
increased 77 basis points to 6.01 percent for the five months ended May 31,
1996. The yield on investment securities increased 231 basis points from 4.74
percent in 1993 to 7.05 percent in 1995 and then decreased to 6.73 percent for
the five months ended May 31, 1996. Other investments and interest bearing
deposits indicated an increase in their yield of 231 basis points from 3.91
percent in 1993 to 6.22 percent in 1995 and then decreased to 6.00 percent for
the five months ended May 31, 1996. The combined weighted average yield on all
interest-earning assets increased 10 basis points to 8.31 percent from 1993 to
1995. The yield on interest-earning assets for the five months ended May 31,
1996, was a higher 8.38 percent, while the yield at May 31, 1996, was a lower
7.84 percent.
Preferred's weighted average cost of interest-bearing liabilities
decreased 19 basis points to 3.24 percent from fiscal year 1993 to 1994, which
was less than the Bank's 59 basis point decrease in yield, resulting in the
decline in the Bank's interest rate spread of 40 basis points from 4.78 percent
to 4.38 percent from 1993 to 1994. The Bank's average cost of interest-bearing
liabilities then increased from 1994 to 1995 by 81 basis points to 4.05 percent
compared to a 69 basis point increase in yield on interest-earning assets. The
result was a continued decrease in the Bank's interest rate spread of 12 basis
points to 4.26 percent for fiscal year 1995. For the five months ended May 31,
1996, the Bank's cost of funds increased 13 basis points to 4.18 percent,
compared to a smaller 7 basis point
17
Yields and Costs (cont.)
increase in yield on interest-earning assets, resulting in a lower net interest
rate spread of 4.20 percent compared to 4.26 percent for the fiscal year ended
December 31, 1995. The Bank's net interest margin decreased from 5.39 percent in
fiscal year 1993 to 5.03 percent in fiscal year 1994, then increased to 5.13
percent for the year ended December 31, 1995. The Bank's net interest margin for
the five months ended May 31, 1996, decreased 4 basis points to 5.09 percent.
18
INTEREST RATE SENSITIVITY
Preferred is aware of the emphasis on controlling one's interest rate
sensitivity position but has focused more on strong earnings and strengthening
its equity position as an alternative to focusing on interest rate risk.
Preferred has responded to the thrift industry's significant interest rate risk
exposure in the 1980's, which caused a negative impact on earnings and market
value of portfolio equity as a result of significant fluctuations in interest
rates, specifically rising rates, by increasing its level of short term
investments and purchasing mortgage-backed securities. Such exposure was due to
the disparate rate of maturity and/or repricing of assets relative liabilities
commonly referred to as an institution's "gap". The Bank had a negative
cumulative one-year maturity gap of 47.07 percent at May 31, 1996, reflective of
the Bank's predominance of fixed-rate mortgage loans and its higher level of
short-term passbook savings accounts (reference Exhibit 11). The larger an
institution's gap, the greater the risk (interest rate risk) of earnings loss
due to a decrease in net interest margin and a decrease in market value of
equity or portfolio loss. In response to the potential impact of interest rate
volatility and negative earnings impact, many institutions have taken steps in
the 1990's to minimize their gap position. This frequently results in a decline
in the institution's net interest margin and overall earnings performance.
The Bank also measures its interest rate risk through the use of its
net portfolio value ("NPV") of the expected cash flows from interest-earning
assets and interest-bearing liabilities and any off-balance sheet contracts. The
NPV for the Bank will be calculated on a quarterly basis by the OTS as well as
the change in the NPV for the Bank under rising and falling interest rates and
was calculated by Performance Analysis at May 31, 1996. Such changes in NPV
under changing rates is reflective of the Bank's interest rate risk exposure.
19
Interest Rate Sensitivity (cont.)
There are other factors which have a measurable influence on interest
rate sensitivity. Such key factors to consider when analyzing interest rate
sensitivity include the loan payoff schedule, accelerated principal payments,
deposit maturities, interest rate caps on adjustable-rate mortgage loans, and
deposit withdrawals.
Exhibit 12 provides the Bank's NPV as of May 31, 1996, and the change
in the Bank's NPV under rising and declining interest rates. Such calculations
are provided by Performance Analysis, and the focus of this exposure table is a
200 basis points change in interest rates either up or down.
The Bank's change in its NPV at May 31, 1996, based on a rise in
interest rates of 200 basis points was a 14.44 percent decrease, representing a
dollar decrease in NPV of $1,950,000. In contrast, based on a decline in
interest rates of 200 basis points, the Bank's NPV was estimated to increase
1.26 percent or $170,000 at May 31, 1996. The Bank's NPV exposure increases to a
32.06 percent decrease under a 400 basis point rise in rates, and the NPV is
estimated to increase 5.28 percent based on a 400 basis point decrease in rates
at May 31, 1996.
The Bank is aware of its higher than average interest rate risk
exposure under strongly rising rates and slightly positive exposure under
falling rates. Due to Preferred's recognition of the need to control its
interest rate exposure, the Bank has been more active in the purchase of
short-term government securities and adjustable-rate mortgage-backed securities.
The Bank will continue to focus on the origination of fixed-rate mortgage loans
combined with the purchase of short-term investments and adjustable-rate
mortgage-backed securities.
20
LENDING ACTIVITIES
Preferred has focused its lending activity on the origination of
conventional mortgage loans secured by one- to four-family dwellings. Exhibit 13
provides a summary of Preferred's loan portfolio, by loan type, at fiscal year
end 1991 through 1995, and at May 31, 1996.
Residential loans secured by one- to four-family dwellings excluding
residential construction loans was the primary loan type representing 71.8
percent of the Bank's gross loans as of May 31, 1996. This share has seen a
moderate decrease from 76.5 percent at February 29, 1992. The second largest
real estate loan type as of May 31, 1996, was multifamily loans which comprised
18.1 percent of gross loans compared to a larger 18.8 percent as of February 29,
1992. The multifamily loan category was also the second largest real estate loan
type at fiscal year ended 1991. The third key real estate loan type was
commercial real estate loans, which represented 9.4 percent of gross loans as of
May 31, 1996, compared to a smaller 4.4 percent at February 29, 1992.
Construction loans was the fourth real estate loan type with only 0.7 percent of
gross loans at May 31, 1996. These four real estate loan categories represented
99.96 percent of gross loans at May 31, 1996, compared to a similar 99.68
percent of gross loans at February 29, 1992.
The consumer loan category was the only other loan type at May 31,
1996, and represented only 0.04 percent of gross loans compared to 0.3 percent
at February 29, 1992. Consumer loans were the fifth largest overall loan type at
May 31, 1996, and February 29, 1992. The overall mix of loans has witnessed
minimal change from fiscal year-end 1991 to May 31, 1996, with the Bank having
increased its level of commercial real estate loans, to offset its decrease in
one- to four-family loans.
21
Lending Activities (cont.)
The emphasis of Preferred's lending activity is the origination of
conventional mortgage loans secured by one- to four-family residences. Such
residences are located in Preferred's primary lending market area of Cook County
and to a lesser extent in DuPage and Will Counties. The Bank also originates
multifamily loans and commercial real estate loans. At May 31, 1996, 71.8
percent of Preferred's gross loans consisted of loans secured by one- to
four-family residential properties, including construction loans.
The Bank originates fixed-rate mortgage loans for its portfolio.
Fixed-rate mortgage loans have normal terms of 15 to 25 years, with an
amortization period of up 25 years. The Bank retains its fixed rate loans.
Historically, almost all of Preferred's mortgage loans are fixed-rate mortgage
loans, which represented 99.3 percent of loans at May 31, 1996.
The original loan to value ratio for conventional mortgage loans to
purchase or refinance single-family dwellings generally does not exceed 80
percent at Preferred, even though the Bank will grant loans with up to an 85
percent loan to value ratio, on a case-by-case basis.
Preferred has also been an active originator of multifamily loans, and
has been less active in commercial real estate loans. The Bank will continue to
make multifamily and commercial real estate loans. The Bank had a total of $6.6
million in multifamily loans at May 31, 1996, or 18.1 percent of gross loans,
compared to $6.0 million or 18.8 percent of gross loans at February 29, 1992.
Multifamily loans consist primarily of six-unit apartment or condominium
buildings. Commercial real estate loans have increased from $1.4 million or 4.4
percent of gross loans at February 29, 1992, to $3.4 million or 9.4 percent of
gross loans at May 31, 1996. The major portion of commercial real estate loans
are secured by office buildings, retail stores and other commercial properties.
Multifamily and commercial real estate loans have terms of 15 years and are
normally made with an 80 percent loan-to-value ratio.
22
Lending Activities (cont.)
Preferred has not been active in consumer lending. Consumer loans
originated consist of savings account loans which represented a total of 0.4
percent of gross loans at May 31, 1996, down from 0.32 percent at February 29,
1992. At May 31, 1996, consumer loans totaled only $17,000.
Exhibit 14 provides a breakdown and summary of Preferred's fixed- and
adjustable-rate loans, indicating almost all fixed-rate loans. At May 31, 1996,
99.3 percent of the Bank's total loans were fixed-rate and 0.7 percent were
adjustable-rate. While most loans are fixed-rate, it is evident that a moderate
16.5 percent of one- to four-family residential mortgage loans and 27.1 percent
of total loans have maturities of less than 10 years.
As indicated in Exhibit 15, Preferred experienced a decrease in its
single-family loan originations but a small increase in total loan originations
from fiscal periods 1993 to 1995, recognizing that 1993 was a shorter ten-month
period. Total loan originations in fiscal year 1995 were $7.3 million compared
to $7.2 million in fiscal period 1993, with fiscal year 1994 indicating a higher
$9.5 million, reflective of higher levels of refinancings. There was a decrease
in one- to four-family residential loan originations from 1993 to 1995 of
$888,000, offset by an $821,000 increase in multifamily loans and a $190,000
increase in commercial real estate loan originations from 1993 to 1995. Loan
originations for the five months ended May 31, 1996, were $4.8 million, up from
$3.1 million for the five months ended May 31, 1995. Loan originations for the
purchase of one- to four-family residences, excluding construction loans,
represented 84.4 percent of total loan originations in fiscal period 1993,
compared to a lower 73.5 percent in fiscal year 1994 and a lower 7.1 percent in
fiscal year 1995. One- to four family loan originations decreased to 52.2
percent of total loan originations for the five months ended May 31, 1996.
Overall, loan originations fell short of repayments and other reductions in
fiscal 1993 by $1.9 million, exceeded reductions in fiscal year 1994 by $2.1
million, reflective of the high level of refinancings, and then exceeded
reductions in fiscal 1995 by $1.6 million. For the five months ended May 31,
1996, originations continued to exceed reductions by $1.2 million.
23
NONPERFORMING ASSETS
Preferred understands asset quality risk and the direct relationship of
such risk to delinquent loans and nonperforming assets including real estate
owned. The quality of assets has been a key concern to financial institutions
throughout many regions of the country. A number of financial institutions have
been confronted with rapid increases in their levels of nonperforming assets and
have been forced to recognize significant losses, setting aside major valuation
allowances. A sharp increase in nonperforming assets has often been related to
specific regions of the country and has frequently been associated with higher
risk loans, including purchased nonresidential real estate loans. Preferred has
not been faced with such problems and has made a concerted effort to control its
nonperforming assets during the past five years.
Exhibit 16 provides a summary of Preferred's delinquent loans at May
31, 1996, indicating a higher level of delinquent loans. Total delinquent loans
were $2.0 million or 7.78 percent of total loans. Delinquent loans of ninety
days or more were $600,000 or 1.6 percent of loans with all of these loans being
secured by one- to four-family dwellings.
Preferred reviews each loan when it becomes delinquent 30 days or more,
to assess its collectibility and to initiate direct contact with the borrower.
The Bank sends the borrower a late payment notice when the loan becomes 20 days
delinquent. The Bank then initiates both written and oral communication with the
borrower if the loan remains delinquent. When the loan becomes delinquent at
least 90 days, the Bank may commence foreclosure proceedings on a case-by-case
basis. The Bank does not normally accrue interest on loans past due 90 days or
more. Most loans delinquent 90 days or more are placed on a non-accrual status,
and at that point in time the Bank pursues foreclosure procedures. Preferred had
no real estate owned at May 31, 1996, and had no real estate owned for the last
five years.
Exhibit 17 provides a summary of Preferred's nonperforming assets at
May 31, 1996, and for fiscal year ends 1991 through 1995. Nonperforming assets
consist of non-
24
Nonperforming Assets (cont.)
accrual loans, which includes loans delinquent 90 days or more, real estate
acquired by foreclosure or by deed in lieu, and repossessed assets. The Bank has
historically carried a moderate level of nonperforming assets when compared to
its peer group and the thrift industry in general. Preferred's level of
nonperforming assets ranged from a high of $775,000 or 1.45 percent of total
assets at December 31, 1995, to a low of $106,000 or 0.21 percent of assets at
February 28, 1993. At May 31, 1996, Preferred's nonperforming assets consisted
entirely of $600,000 in nonperforming loans with no repossessed assets and
represented 1.09 percent of assets.
Preferred's level of nonperforming assets is equivalent to its level of
classified assets. The Bank's level of classified assets was $600,000 or 1.09
percent of assets at May 31, 1996 (reference Exhibit 18). The Bank's classified
assets consisted of $600,000 in substandard assets, with no assets classified as
doubtful or loss.
Exhibit 19 shows Preferred's allowance for loan losses at May 31, 1996,
and for fiscal years 1991 through 1995, indicating the activity and the
resultant balances. Preferred has witnessed a significant increase in its
balance of allowance for loan losses from $43,000 at year-end 1991 to $186,000
at May 31, 1996, with provisions of $24,000 in 1991, $24,000 in 1992, $27,000 in
1993, $42,000 in 1994 and $50,000 during the first five months of 1996. The Bank
had no net charge-offs during the past five fiscal periods or during the first
five months of 1996. The Bank's ratio of allowance for loan losses to total
loans increased from 0.13 percent at February 29, 1992, to 0.39 percent at
December 31, 1995, due to an increase in allowances with no meaningful increase
in loans. The allowance for loan losses to gross loans was a higher 0.51 percent
at May 31, 1996. Allowance for loan losses to nonperforming assets were 17.5
percent at December 31, 1995, and a much higher 31.0 percent at May 31, 1996,
reflecting the increase in allowance for loan losses.
25
INVESTMENTS
The investment and securities portfolio of Preferred has been comprised
of U.S. government and federal agency securities, mortgage-backed securities,
interest-bearing deposits with other banks, and FHLB stock. Exhibit 20 provides
a summary of Preferred's investment portfolio at December 31, 1993 through 1995,
and at May 31, 1996. Investments were $14.2 million at May 31, 1996, compared to
$13.2 million at December 31, 1995, and $19.4 million at December 31, 1993. The
primary component of securities at May 31, 1996, was federal agency securities,
representing 47.3 percent, followed by mortgage-backed securities, representing
21.5 percent, and then interest-bearing, deposits representing 15.3 percent, for
a combined total of 84.1 percent of investments including mortgage-backed
securities. The securities portfolio had a weighted average yield of 6.73
percent, and the mortgage-backed securities had a weighted average yield of 6.01
percent for the five months ended May 31, 1996. The Bank's liquid assets are
comprised of cash and cash equivalents and short-term government securities and
represented a strong 30.5 percent of assets at May 31, 1996.
The Bank had mortgage-backed securities with a book value of $3.9
million at May 31, 1996, which decreased from $4.2 million at December 31, 1995,
and increased from $2.0 million at December 31, 1993. Mortgage-backed securities
are included in total investments and shown in Exhibit 20. Mortgage-backed
securities represented a moderate 21.5 percent of total investments at May 31,
1996, and a lesser 9.5 percent at December 31, 1993.
DEPOSIT ACTIVITIES
The change in the mix of deposits from December 31, 1993, to May 31,
1996, is provided in Exhibit 21. There has been a minimal change in total
deposits and a moderate change in the deposit mix during this period.
Certificates of deposit witnessed a moderate
26
Deposit Activities (cont.)
increase in their share of deposits, rising from a modest 39.2 percent of
deposits at December 31, 1993, to a moderate 48.5 percent at May 31, 1996. The
major component of certificates had rates between 4.0 percent and 5.99 percent
and consisted of 91.3 percent of certificates at May 31, 1996. At December 31,
1993, however, the major component of certificates was the zero to 3.99 percent
category with 80.2 percent of certificates. Passbook accounts decreased in
dollar amount from $23.0 million to $19.6 million, and their share of total
deposits decreased from 55.9 percent to 46.7 percent from December 31, 1993, to
May 31, 1996, with modest decreases in rates during that period. The share of
passbook savings continues to be very strong. Money market accounts indicated a
modest decrease in their share from 4.9 percent in 1993 to 4.8 percent at May
31, 1996. The Bank had no NOW accounts or noninterest-bearing checking accounts
during these periods.
Exhibit 22 shows the Bank's deposit activity for the three years ended
December 31, 1993 to 1995, and at May 31, 1996. With interest credited,
Preferred experienced net increases in deposits in fiscal years 1993 and 1995,
for the five months ended May 31, 1996, and decreases in fiscal year 1994 and
for the five months ended May 31, 1995. In fiscal years 1993 and 1995, there
were net increases in deposits of $776,000 or 1.9 percent, and $990,000 or 2.5
percent, respectively, however withdrawals exceeded deposits when one excluded
interest credited. In fiscal year 1994, a decrease in deposits of $1.1 million
resulted in a 2.6 percent decrease. For the five months ended May 31, 1996, a
net increase in deposit balances of $399,000 and $499,000 of interest credited,
produced a net increase in deposits of $898,000 or 2.2 percent.
BORROWINGS
Preferred has relied on retail deposits as its primary source of funds,
making no use of FHLB advances during the past five fiscal years ended December
31, 1995, or during the five months ended May 31, 1996.
27
SUBSIDIARIES
Preferred has one wholly-owned subsidiary, Preferred Service
Corporation ("Service Corporation"). The Service Corporation was organized in
1969 as an Illinois corporation to sell casualty, disability and credit life
insurance on an agency basis to the Bank's customers. The Bank's equity
investment in the Service Corporation at May 31, 1996, was $4,300, and the
Service Corporation has indicated minimal net income in recent periods.
OFFICE PROPERTIES
Preferred has only one office, a home office located in southwest
Chicago, near Midway Airport. Preferred owns its facility which has
approximately 5,000 square feet of space and provides off-street parking and
drive-in access. The Bank's investment in its office premises, including
furniture, fixtures and equipment, totaled $457,000 or 0.83 percent of assets at
May 31, 1996.
MANAGEMENT
The president, chief executive officer, and managing officer of
Preferred is Kim P. Rooney. Ms. Rooney joined the Bank in 1995 as president and
chief executive officer, and served as a member of the board of directors since
1989. Prior to becoming president of Preferred, Ms. Rooney served as an outside
attorney for the Bank. Mr. Jeffrey Przybyl is the chief financial officer of the
Bank and is responsible for accounting and financial reporting functions of the
Bank. Ms. Marianne Maciejewski is vice president of the Bank and is in charge of
compliance and has been with the Bank since 1985. Ms. Linda Peterson is vice
president in charge of lending functions and joined the Bank in 1987 as a loan
officer (reference Exhibit 23).
28
II. DESCRIPTION OF PRIMARY MARKET AREA
Preferred Savings' primary market area is Cook County, Illinois,
including the city of Chicago. The Bank's only office is located to the
southwest of downtown Chicago near Midway Airport.
The Bank's market area trends and economic performance have been only
somewhat dependent on the overall economic trends in the market area county. The
market area is characterized by dense population and similar levels of per
capita income and median household income to those of Illinois, and significant
deposit levels. The market area county's employment base is strongest in the
areas of wholesale/retail and the services category of employment, with these
two categories totaling 60.0 percent of employment for the county market area.
The Bank's immediately surrounding area represents the core of the Bank's
deposit customers, while the Bank's lending activity extends farther into Cook
County. The market area has been characterized by a stronger presence of
residents with Polish ancestry, however the outlying area is rapidly witnessing
an increase in Hispanic residents.
Exhibit 24 provides a summary of key demographic data and trends for
the United States, Illinois, and Cook County for the periods of 1990, 1995, and
2000. The market area showed almost no increase in population compared to a
higher increase in Illinois, while the United States showed an even higher
increase. Overall, the period of 1990 to 1995 was characterized by a rise in the
national population level by 5.7 percent compared to an increase in population
of 3.4 percent in Illinois and a smaller increase of 0.8 percent in Cook County,
which increased from 5,105,067 to 5,144,275 residents. During the period of 1995
through 2000, population is projected to continue to rise in the United States
by 5.4 percent, in Illinois by 3.2 percent and in Cook County by 0.7 percent,
increasing to 5,181,677 residents or 42.5 percent of the total population for
Illinois. This is a decrease from 43.5 percent of the Illinois total population
in 1990.
29
Description of Primary Market Area (cont.)
In conformance with the United States' stronger growth trend in
population, Illinois witnessed increases in households (families) of 3.4 percent
and 3.1 percent from 1990 to 1995 and from 1995 to 2000, respectively. These
increases exceed Cook County's increases in households for the same periods.
From 1990 to 1995, the market area increased its households from 1,879,488 to
1,895,588, or by 0.9 percent. By the year 2000, the market area is projected to
increase by 0.8 percent to 1,910,191 households.
Cook County had a lower per capita income level than Illinois, but a
higher income level than the United States in 1990. In 1995, Cook County had a
higher per capita income level than both Illinois and the United States. Cook
County's per capita income level was $17,825 in 1995 compared to a lower $17,047
for Illinois, and $16,405 for the United States. In, 1995 the per capita income
level for Cook County was 4.7 percent higher than Illinois and 8.7 percent
higher than the United States. Cook County exhibited higher median household
income growth levels from 1990 to 1995 than both Illinois and the United States.
In 1990, the United States had a median household income of $28,255 compared to
$31,424 in Illinois, and $30,060 in Cook County. In 1995, Cook County had the
highest median household income level at $36,543 when compared to a lower
$35,865 for Illinois and $33,610 for the United States. By the year 2000 Cook
County, Illinois, and the United States' median household income levels are
projected to decrease by 2.0 percent, 1.0 percent, and 1.9 percent,
respectively.
Exhibit 25 provides a summary of key housing data for Cook County,
Illinois, and the United States. Approximately 43.4 percent of all occupied
housing units in Illinois are located in Cook County. Cook County is
characterized by a lower share of owner-occupied housing at 55.5 percent
compared to Illinois at 64.2 percent and the United States also at 64.2 percent.
Cook County supports a rate of renter-occupied housing of 44.5 percent compared
to a lower 35.8 percent for both Illinois and the United States. The
30
Description of Primary Market Area (cont.)
median housing value for Cook County is $102,118 which is higher than Illinois'
value of $80,873 by 26.3 percent, and higher than the United States median
housing value of $79,098 by 29.1 percent. Cook County had a median rent of $411
which is higher than $369 for Illinois and $374 for the United States.
The major business source of personal income by industry group in Cook
County, Illinois, and the United States, based on number of employees, was the
services industry contributing 35.2 percent, 32.8 percent, 34.1 percent,
respectively (reference Exhibit 26). The wholesale/retail trade group was the
second major source of employment in Cook County at 24.8 percent compared to
26.9 percent in Illinois, and 27.5 percent in the United States. The
manufacturing industry was the third major source of employment in Cook County,
Illinois, and the United States. In Cook County manufacturing contributed 19.0
percent which was lower than Illinois at 20.8 percent and the United States at
19.2 percent. The construction group, finance, insurance and real estate group,
transportation/utilities group, and agriculture/mining group combined to
contribute 21.0 percent of employment in Cook County, 19.5 percent in Illinois,
and 19.3 percent in the United States. The mix of income sources by industry
groups for Cook County was similar to Illinois' mix, in that both were dominated
by the services industry. Cook County had a higher portion of employment from
the finance, insurance and real estate sector and a lower portion in the
agriculture/mining sector than did Illinois or the United States.
The unemployment rate is another key economic indicator. Exhibit 27
shows the average unemployment rates for Cook County, Illinois, and the United
States in 1994, 1995, and March, 1996. Cook County had higher unemployment rates
than Illinois in 1994, 1995, and March, 1996. The County has seen a decrease in
its unemployment rate to 5.4 percent in March, 1996, which is lower than the
United States' 5.8 percent, but higher than Illinois' 5.2 percent unemployment
rate. Unemployment in Cook County has
31
Description of Primary Market Area (cont.)
declined 11.5 percent from 6.1 percent in 1994 to 5.4 percent in March, 1996,
compared to a decrease in unemployment of 8.8 percent in Illinois since 1994
from 5.7 percent to 5.2 percent in 1995 and remaining at 5.2 percent in March,
1996. The United States unemployment rate decreased 14.8 percent from 6.1
percent in 1994 to 5.2 percent in 1995 and then increased by 11.5 percent to 5.8
percent in March, 1996.
Exhibit 28 provides deposit data for banks, thrifts and credit unions
in the Bank's market area. The Bank's market penetration in the market area
county was $41.3 million or 0.14 percent of thrift deposits and 0.04 percent of
all financial institution and credit union deposits which totaled $109.1
billion. Given the size of the market area and the high level of population,
such low market share of deposits is not necessarily an accurate depiction of
the Bank's strength in its immediate area.
Exhibit 29 provides interest rate data for each quarter for the years
1992 through 1995 and for the first quarter of 1996. The interest rates tracked
are the Prime Rate, as well as 90-Day, One-Year and Thirty-Year Treasury Bills.
Interest rates experienced a declining trend in the first two quarters of 1992,
but then began to rise in the second half of the year. In 1993 rates experienced
slight volatility until the last two quarters, which indicated the beginning of
a rising trend. This rising trend continued throughout all of 1994 and into the
first quarter of 1995 with prime at 9.00 percent. However, throughout the
remainder of 1995, interest rates saw dramatic decreases, as the prime rate fell
to its 1994 year end level of 8.50 percent. Such decrease in the prime rate
continued through the first quarter of 1996 as it fell to 8.25 percent. Rates on
T-bills, however, witnessed an increase with 30-Year Treasury Bills experiencing
the largest increase.
32
SUMMARY
To summarize, the market area county represents a large and basically
stable market in all areas, population, income levels, unemployment, housing
values, etc. The population, the number of households, the per capita income
level, and the median household income level in the market area have displayed a
trend of modest growth in the mid 1990's. The market area county also had much
higher median rent and median housing values, which generally correspond to high
mortgage loan levels. Further, the market area county has a strongly competitive
financial institution market dominated by banks with a large deposit base that
exceeds $109.1 billion in deposits for the market area.
33
III. COMPARABLE GROUP SELECTION
Introduction
Integral to the valuation of Preferred is the selection of an
appropriate group of publicly-traded thrift institutions, hereinafter referred
to as the "comparable group". This section identifies the comparable group and
describes each parameter used in the selection of each institution in the group,
resulting in a comparable group based on such specific and detailed parameters,
current financials and recent trading prices. The various characteristics of the
selected comparable group provide the primary basis for making the necessary
adjustments to the Bank's pro forma value relative to the comparable group.
There is also a recognition and consideration of financial comparisons with all
publicly-traded, SAIF-insured thrifts in the United States and all
publicly-traded, SAIF-insured thrifts in the Midwest and in Illinois.
Exhibits 30 and 31 present Thrift Stock Prices and Pricing Ratios and
Key Financial Data and Ratios, respectively, both individually and in aggregate,
for the universe of 334 publicly-traded, SAIF-insured thrifts in the United
States ("all thrifts"), excluding mutual holding companies, used in the
selection of the comparable group and other financial comparisons. Exhibits 30
and 31 also subclassify all thrifts by region, including the 152 Midwest thrifts
("Midwest thrifts") and the 24 thrifts in Illinois ("Illinois thrifts"), and by
trading exchange. Exhibit 32 presents prices, pricing ratios and price trends
for all SAIF-insured thrifts completing their conversions between July 1, 1995,
and August 9, 1996.
The selection of the comparable group was based on the establishment of
both general and specific parameters using financial, operating and asset
quality characteristics of Preferred as determinants for defining those
parameters. The determination of parameters was also based on the uniqueness of
each parameter as a normal indicator of a thrift institution's operating
philosophy and perspective. The parameters established and
34
Introduction (cont.)
defined are considered to be both reasonable and reflective of Preferred's basic
operation. Inasmuch as the comparable group must consist of at least ten
institutions, the parameters relating to asset size and geographic location have
been expanded as necessary in order to fulfill this requirement.
GENERAL PARAMETERS
Merger/Acquisition
The comparable group will not include any institution that is in the
process of a merger or acquisition due to the price impact of such a pending
transaction. The thrift institutions that were potential comparable group
candidates but were not considered due to their involvement in a
merger/acquisition or a potential merger/acquisition include the following:
Institution State
----------- -----
Financial Security Corp. Illinois
Workingmens Capital Holdings Indiana
Marshalltown Financial Corp. Iowa
Mutual Bancompany Missouri
Circle Financial Corp. Ohio
Seven Hills Financial Corp. Ohio
Third Financial Corp. Ohio
Four thrift institutions in Preferred's city, county or market area are
currently involved in merger/acquisition activity or have been recently so
involved, as indicated in Exhibit 33.
35
Mutual Holding Companies
The comparable group will not include any mutual holding companies.
Mutual holding companies typically demonstrate higher price to book valuation
ratios that are the result of their minority ownership structure that are
inconsistent with those of conventional, publicly-traded institutions. Exhibit
34 presents pricing ratios and Exhibit 35 presents key financial data and ratios
for all publicly-traded, SAIF-insured mutual holding companies in the United
States. The following thrift institutions were potential comparable group
candidates, but were not considered due to their mutual holding company form:
Institution State
----------- -----
Webster City Federal Savings Bank, MHC Iowa
Pulaski Bank, Savings Bank, MHC Missouri
Wayne Savings & Loan Co., MHC Ohio
Trading Exchange
It is necessary that each institution in the comparable group be listed
on one of the two major stock exchanges, the New York Stock Exchange or the
American Stock Exchange, or traded over-the-counter ("OTC") and listed on the
National Company of Securities Dealers Automated Quotation System ("NASDAQ").
Such a listing indicates that an institution's stock has demonstrated trading
activity and is responsive to normal market conditions, which are requirements
for listing. Of the 353 publicly-traded, SAIF-insured institutions, including 18
mutual holding companies, 14 are traded on the New York Stock Exchange, 17 are
traded on the American Stock Exchange and 322 are listed on NASDAQ.
36
IPO Date
Another general parameter for the selection of the comparable group is
the initial public offering ("IPO") date, which must be at least four quarterly
periods prior to the trading date of August 9, 1996, used in this report, in
order to insure at least four consecutive quarters of reported data as a
publicly-traded institution. The resulting parameter is a required IPO date
prior to March 31, 1995.
Geographic Location
The geographic location of an institution is a key parameter due to the
impact of various economic and thrift industry conditions on the performance and
trading prices of thrift institution stocks. Although geographic location and
asset size are the two parameters that have been developed incrementally to
fulfill the comparable group requirements, the geographic location parameter has
definitely eliminated regions of the United States distant to Preferred,
including the western states, the Southeastern states and the New England
states.
The geographic location parameter consists of Illinois, its surrounding
states of Wisconsin, Iowa, Missouri, Kentucky and Indiana, as well as the state
of Ohio, for a total of seven states. To extend the geographic parameter beyond
those states could result in the selection of similar thrift institutions with
regard to financial conditions and operating characteristics, but with different
pricing ratios due to their geographic regions. The result could then be an
unrepresentative comparable group with regard to price relative to the
parameters and, therefore, an inaccurate value.
37
Asset Size
Asset size was another key parameter used in the selection of the
comparable group. The maximum total assets for any comparable group institution
considered was $350 million, due to the typically different operating
strategies, expansion capabilities, liquidity of stock and acquisition appeal of
larger institutions when compared to Preferred, with assets of approximately $55
million. Such an asset size parameter was necessary to obtain a comparable group
of at least ten institutions.
In connection with asset size, we did not consider the number of
offices or branches in selecting or eliminating candidates since this
characteristic is directly related to operating expenses, which are recognized
as an operating performance parameter.
SUMMARY
Exhibits 36 and 37 show the 55 institutions considered as comparable
group candidates after applying the general parameters, with the shaded lines
denoting the institutions ultimately selected for the comparable group using the
balance sheet, performance and asset quality parameters established in this
section.
38
BALANCE SHEET PARAMETERS
Introduction
The balance sheet parameters focused on seven balance sheet ratios as
determinants for selecting a comparable group, as presented in Exhibit 36. The
balance sheet ratios consist of the following:
1. Cash and Investments/Assets
2. Mortgage-Backed Securities/Assets
3. One- to Four-Family Loans/Assets
4. Total Net Loans/Assets
5. Total Net Loans and Mortgage-Backed Securities/Assets
6. Borrowed Funds/Assets
7. Equity/Assets
The parameters enable the identification and elimination of thrift
institutions that are distinctly different from Preferred with regard to asset
mix. The balance sheet parameters also distinguish institutions with a
significantly different capital position from Preferred. The ratio of deposits
to assets was not used as a parameter as it is directly related to and affected
by an institution's equity and borrowed funds ratios, which are separate
parameters.
Cash and Investments to Assets
Preferred's level of cash and investments to assets was 25.8 percent at
May 31, 1996, and reflects the Bank's level of investments moderately higher
than national and regional averages. The Bank's investments consist primarily of
government and federal agency securities, FHLB stock and certificates in other
institutions. During the past five fiscal years, Preferred's level of cash and
investments to assets has averaged 30.5 percent, from a high of 37.1 percent at
December 31, 1993, to a low of 25.7 percent in 1995.
39
Cash and Investments to Assets (cont.)
The parameter range for cash and investments is broad due to the
volatility of this parameter and to prevent the elimination of otherwise good
potential comparable group candidates. The range has been defined as 5.0 percent
of assets to 50.0 of assets, with a midpoint of 27.5 percent.
Mortgage-Backed Securities to Assets
At May 31, 1996, Preferred's ratio of mortgage-backed securities to
assets was 7.1 percent, lower than both the regional average of 9.5 percent and
the national average of 14.0 percent. Inasmuch as many institutions purchase
mortgage-backed securities as an alternative to lending relative to cyclical
loan demand and prevailing interest rates, this parameter is moderately broad at
20.0 percent or less of assets and a midpoint of 10.0 percent.
One- to Four-Family Loans to Assets
Preferred's lending activity is focused on the origination of
residential mortgage loans secured by one- to four-family dwellings. One- to
four-family loans, including construction loans, represented 47.1 percent of the
Bank's assets at May 31, 1996, which is similar to industry averages. The
parameter for this characteristic requires any comparable group institution to
have from 35.0 percent to 75.0 percent of its assets in one-to four-family loans
with a midpoint of 55.0 percent.
40
Total Net Loans to Assets
At May 31, 1996, Preferred had a ratio of total net loans to assets of
65.1 percent and a similar five fiscal year average of 63.8 percent. The
parameter for the selection of the comparable group is from 40.0 percent to 85.0
percent with a midpoint of 62.5 percent. The wider range is simply due to the
fact, as stated above, that many institutions purchase a greater or smaller
volume of mortgage-backed securities as an alternative to lending, but may
otherwise be similar to Preferred.
Total Net Loans and Mortgage-Backed Securities to Assets
As discussed previously, Preferred's shares of mortgage-backed
securities to assets and total net loans to assets were 7.1 percent and 65.1
percent, respectively, for a combined share of 72.2 percent. Recognizing the
industry and regional ratios of 14.0 percent and 9.5 percent, respectively, of
mortgage-backed securities to assets, the parameter range for the comparable
group in this category is 45.0 percent to 95.0 percent, with a midpoint of 70.0
percent.
Advances to Assets
Preferred had no FHLB advances at May 31, 1996, and at the end of its
most recent five fiscal years. The use of borrowed funds by some thrift
institutions indicates an alternative to retail deposits and may provide a
source of term funds for lending. The federal insurance premium on deposits has
also increased the attractiveness of borrowed funds.
The public demand for longer term funds increased in 1994 and the first
half of 1995 due to the rise in interest rates. The result was competitive rates
on longer term Federal Home Loan Bank advances, and an increase in borrowed
funds by many
41
Advances to Assets (cont.)
institutions as an alternative to higher cost, long term certificates. The ratio
of borrowed funds to assets, therefore, does not typically indicate higher risk
or more aggressive lending, but primarily an alternative to retail deposits.
The required range of borrowed funds to assets is 25.0 percent or less
with a midpoint of 12.5 percent, similar to the national average of 12.7
percent.
Equity to Assets
Preferred's equity to assets ratio as of May 31, 1996, was 21.93
percent. The equity to assets ratio for Preferred after conversion, based on the
midpoint value of $16,500,000 and net proceeds to the Bank of approximately $8.0
million, is projected to stabilize in the area of 34.0 percent. Based on those
equity ratios, we have defined the equity ratio parameter to be 8.0 percent to
30.0 percent with a midpoint ratio of 19.0 percent.
PERFORMANCE PARAMETERS
Introduction
Exhibit 37 presents five parameters identified as key indicators of
Preferred's earnings performance and the basis for such performance. The primary
performance indicator is the Bank's return on average assets ("ROAA"). The
second performance indicator is the Bank's return on average equity ("ROAE"). To
measure the Bank's ability to generate net interest income, we have used net
interest margin. The supplemental source of income for the Bank is noninterest
income, and the parameter used to measure this factor is noninterest income to
assets. The final performance indicator that has been identified is the Bank's
ratio of operating expenses to assets (noninterest expenses to
42
Introduction (cont.)
assets), a key factor in distinguishing different types of operations,
particularly institutions that are aggressive in secondary market activities
which results in much higher operating costs and overhead ratios.
Return on Average Assets
The key performance parameter is the ROAA. Preferred's most recent ROAA
was 1.87 percent for the twelve months ended May 31, 1996, based on both net and
core earnings after taxes, as detailed in Item I of this report and presented in
Exhibit 7. The Bank's ROAA over the past five calendar years, based on net
earnings, has ranged from a low of 1.46 percent in 1994 to a high of 1.99
percent in 1995 with an average ROAA of 1.80 percent. For the four quarters
following conversion in late 1996, Preferred's ROAA is projected to range
between 2.00 percent and 2.25 percent, remaining within that range through the
end of 1998.
Considering primarily the historical, current and projected earnings
performance of Preferred, the range for the ROAA parameter based on net income
has been defined as 1.00 percent to a high of 2.00 percent with a midpoint of
1.50 percent.
Return on Average Equity
The ROAE has been used as a secondary parameter to eliminate any
institutions with an unusually high or low ROAE that is inconsistent with the
Bank's position. This parameter does not provide as much meaning for a newly
converted thrift institution as it does for established stock institutions, due
to the newness of the capital structure of the newly converted thrift and the
inability to accurately reflect a mature ROAE for the newly converted thrift
relative to other stock institutions.
43
Return on Average Equity (cont.)
The consolidated ROAE for the Bank and the Corporation on a pro forma
basis at the time of conversion is 5.32 percent based on the midpoint valuation.
Prior to conversion, the Bank's ROAE was 8.64 percent for the twelve months
ended May 31, 1996, based on net and core income, with a five year average ROAE
of 10.04 percent. The parameter range for the comparable group, based on net
income, is from 4.0 percent to 15.0 percent with a midpoint of 9.5 percent.
Net Interest Margin
Preferred had a net interest margin of 5.10 percent based on the twelve
month period ended May 31, 1996. The Bank's range of net interest margin for the
past five fiscal years has been from a low of 4.25 percent in 1991 to a high of
5.13 percent in 1995 with an average of 4.94 percent.
The parameter range for the selection of the comparable group is from a
low of 2.75 percent to a high of 5.25 percent with a midpoint of 4.00 percent.
Operating Expenses to Assets
Preferred had a lower than average operating expense to average assets
ratio of 1.89 percent for the twelve months ended May 31, 1996. The Bank's ratio
of operating expenses to average assets for the last five years has ranged from
a low of 1.26 percent in 1993 to a high of 1.91 percent in 1995 with an average
of 1.58 percent, considerably lower than the industry average of approximately
2.29 percent.
44
Operating Expenses to Assets (cont.)
The operating expense to assets parameter for the selection of the
comparable group is from a low of 1.50 percent to a high of 2.75 percent with a
midpoint of 2.13 percent.
Noninterest Income to Assets
Preferred has experienced a lower than average dependence on
noninterest income as a source of additional income. The Bank's noninterest
income to average assets was 0.11 percent for the twelve months ended May 31,
1996, which is below the industry average of 0.44 percent for that period.
Preferred's noninterest income for the past five fiscal years, including gains
and losses, as fluctuated from a high of 0.29 percent of assets in 1992 to a low
of (0.56) percent in 1994.
The range for this parameter for the selection of the comparable group
is 0.7 percent of assets or less, with a midpoint of 0.35 percent.
ASSET QUALITY PARAMETERS
Introduction
The final set of financial parameters used in the selection of the
comparable group are asset quality parameters, also shown in Exhibit 37. The
purpose of these parameters is to insure that any thrift institution in the
comparable group has an asset quality position similar to that of Preferred. The
three defined asset quality parameters are the ratios of nonperforming assets to
total assets, repossessed assets to total assets and loan loss reserves to total
assets at the end of the most recent period.
45
Nonperforming Assets to Assets Ratio
Preferred's ratio of nonperforming assets to assets was 1.09 percent at
May 31, 1996, which is lower than the national average of 1.28 percent, but
higher than the Midwest regional average of 0.56 percent and an improvement from
its ratio of 3.92 percent at December 31, 1995. For its most recent five fiscal
years, the Bank's ratio increased significantly from a low of 0.21 percent at
February 28, 1993, to a high of 1.45 percent at December 31, 1995, with a five
year average of 0.62 percent.
The parameter range for nonperforming assets to assets has been defined
as 1.25 percent of assets or less with a midpoint of 0.63 percent.
Repossessed Assets to Assets
Preferred was absent repossessed assets at May 31, 1996, and at the end
of its most recent five fiscal years. National and regional averages were 0.63
percent and 0.48 percent, respectively, at May 31, 1996.
The range for the repossessed assets to total assets parameter is 0.20
percent of assets or less with a midpoint of 0.1 percent.
Loans Loss Reserves to Assets
Preferred had a loan loss reserve or allowance for loan losses of
$186,000, representing a loan loss allowance to total assets ratio of 0.34
percent at May 31, 1996, which is higher than its ratios of 0.25 percent 0.26
percent at December 31, 1995 and 1994, respectively, due to a provision of
$50,000 applied during the second quarter of 1996.
46
Loan Loss Reserves to Assets (cont.)
The loan loss allowance to assets parameter range used for the
selection of the comparable group focused on a minimum required ratio of 0.15
percent of assets.
THE COMPARABLE GROUP
With the application of the parameters previously identified and
applied, the final comparable group represents ten institutions identified in
Exhibits 38, 39 and 40. The comparable group institutions range in size from
$76.7 million to $319.6 million with an average asset size of $186.3 million and
have an average of 3.8 offices per institution compared to Preferred with assets
of $55.9 million and 1 office. One of the comparable group institutions was
converted in 1987, one in 1992, two in 1993, five in 1994 and one in 1995.
Exhibit 41 presents a comparison of Preferred's market area demographic
data with that of each of the institutions in the comparable group.
47
SUMMARY OF COMPARABLE GROUP INSTITUTIONS
CB Bancorp, Inc., Michigan City, Indiana, is a holding company for
Community Bank, FSB. The Bank serves the Northwestern corner of Indiana with two
offices in Michigan City and one in LaPorte, Indiana. The Bank also owns a
subsidiary that specializes in tax preparation and management services for the
general public. At the end of it most recent quarter, the Bank reported total
assets of $195.7 million, and equity of $19.3 million or 9.86 percent of assets.
For its most recent four quarters, the Bank's ROA was 1.38 percent and its
return on equity was 14.64 percent.
Community Investors Bancorp, Inc., Bucyrus, Ohio, is the holding
company for First Federal Savings and Loan Association of Bucyrus. The
Association serves its Crawford County, Ohio, market with three offices, two in
Bucyrus and one in New Washington. As of its most recent quarter, the
Association had assets of $85.8 million and equity of $11.9 million, and
reported an ROAA of 1.01 percent and an ROAE of 6.98 percent.
Enterprise Federal Bancorp, Lockland, Ohio, is the holding company for
Enterprise Federal Savings Bank, which operates five offices in the Cincinnati,
Ohio, area. With assets of $203.4 million and equity of $31.5 million,
Enterprise reported an ROAA of 1.03 percent and an ROAE of 5.52 percent for its
most recent four quarters.
FCB Financial Corporation, Neenah, Wisconsin, is the holding company
for Fox Cities Bank, F.S.B., a federally chartered savings bank. The Bank
originates one- to four-family residential mortgage loans, construction loans,
commercial real estate loans and consumer loans, operating six offices serving
East Central Wisconsin. As of the most recent quarter, the Bank had assets of
$255.7 million, equity of $47.2 million and an ROAA of 1.03 percent
48
Summary of Comparable Group Institutions (cont.)
Marion Capital Holdings, Inc., Marion, Indiana, is the holding company
for First Federal Savings Bank of Marion, with two full service offices serving
the City of Marion and Marion County. At the end of its most recent quarter, the
Bank had assets of $177.8 million and equity of $41.5 million and indicated an
ROAA of 1.41 percent and an ROAE of 5.86 percent for its trailing four quarters.
Milton Federal Financial Corporation, West Milton, Ohio, is the holding
company for Milton Federal Savings and Loan Association. The Association
operates two full service offices, one in West Milton, Ohio, in Miami County and
the other in Englewood, Ohio, in Montgomery County. Milton Federal has assets of
$178.3 million, equity of $33.8 million and an ROAA of 1.04 percent for its most
recent four quarters.
Northwest Equity Corporation, Amery, Wisconsin, is the unitary thrift
holding company for Northwest Savings Bank, a community oriented institution
with three offices serving Polk County. The Bank had assets of $91.8 million and
equity of $11.7 million at the close of its most recent quarter and reported an
ROAA of 1.00 percent and an ROAE of 6.91 percent for its trailing four quarters.
Peoples Bancorp, Auburn, Indiana, is the savings and loan holding
company for Peoples Federal Savings Bank of Dekalb County. The Bank operates
four branches in Columbia City, Garrett, Kendalville and LaGrange, Indiana. For
the last four quarters, the Bank had an ROAA of 1.45 percent and an ROAE of 9.51
percent, based on assets of $278.0 million and equity of $43.3 million at the
end of its most recent quarter.
Statefed Financial Corp., Des Moines, Iowa, is the holding company for
State Federal Savings and Loan Association of Des Moines, operating two offices
in Polk County, Iowa. The Association has total assets of $76.7 million and
equity of $14.9 million and reported an ROAA of 1.19 percent for its most recent
four quarters.
49
Summary of Comparable Group Institutions (cont.)
Western Ohio Financial Corporation, Springfield, Ohio, is the holding
company for Springfield Federal Savings and Loan Association. The Association
operates six full-service offices serving Clark and Hamilton Counties. The
Association had assets of $319.6 million and equity of $58.2 million at the end
of its most recent quarter and reported an ROAA of 1.12 percent and an ROAE of
4.19 percent for its trailing four quarters.
50
IV. ANALYSIS OF FINANCIAL PERFORMANCE
This section reviews and compares the financial performance of
Preferred to all thrifts, regional thrifts, Illinois thrifts and the ten
institutions constituting Preferred's comparable group, as selected and
described in the previous section. The comparative analysis focuses on financial
condition, earning performance and pertinent ratios as presented in Exhibits 42
through 47.
As presented in Exhibits 42 and 43, at May 31, 1996, Preferred's total
equity of 21.93 percent of assets was considerably higher than the 16.59 percent
for the comparable group, and also higher than the 12.85 percent ratio of all
thrifts, the 14.13 percent ratio for Midwest thrifts, and the 13.45 percent
ratio for Illinois thrifts. The Bank had a 65.09 percent share of net loans in
its asset mix, lower than the comparable group at 71.23 percent, but similar to
all thrifts at 66.68 percent, Midwest thrifts at 68.26 percent and Illinois
thrifts at 65.98 percent. Preferred's share of net loans, similar to industry
averages, is the result of its higher level of cash and investments of 25.84
percent and its lower level of mortgage-backed securities of 7.08 percent. The
comparable group had a similar 6.00 percent share of mortgage-backed securities,
and a lower 20.70 percent share of cash and investments. All thrifts had 14.02
percent of assets in mortgage-backed securities and 14.97 percent in cash and
investments. Preferred's share of deposits of 76.47 percent was higher than the
comparable group and the three geographic categories, reflecting the Bank's
absence of FHLB advances and higher equity level. The comparable group had
deposits of 68.49 percent and borrowings of 13.46 percent. All thrifts averaged
a 72.92 percent share of deposits and 12.77 percent of borrowed funds, while
Midwest thrifts had a 71.94 percent share of deposits and an 12.71 percent share
of borrowed funds. Illinois thrifts averaged a 73.52 percent share of deposits
and a 11.56 percent share of borrowed funds. Preferred was absent goodwill and
other intangibles, compared to 0.11 percent for the comparable group, 0.32
percent for all thrifts, 0.15 percent for Midwest thrifts and 0.13 percent for
Illinois thrifts.
51
Analysis of Financial Performance (cont.)
Operating performance indicators are summarized in Exhibits 44 and 45
and provide a synopsis of key sources of income and key expense items for
Preferred in comparison to the comparable group, all thrifts, and regional
thrifts for the trailing four quarters.
As shown in Exhibit 46, for the twelve months ended May 31, 1996,
Preferred had a yield on average interest-earning assets higher than the
comparable group and all geographical categories. The Bank's yield on
interest-earning assets was 8.44 percent compared to the comparable group at
8.05 percent, all thrifts at 7.73 percent, Midwest thrifts at 7.71 percent and
Illinois thrifts at 7.49 percent.
The Bank's cost of funds for the twelve months ended May 31, 1996, was
lower than the comparable group and all geographical categories for their most
recent four quarters. Preferred had an average cost of interest-bearing
liabilities of 4.14 percent compared to 5.10 percent for the comparable group,
4.91 percent for all thrifts, 5.01 percent for Midwest thrifts and 4.87 for
Illinois thrifts. The Bank's interest income and interest expense ratios
resulted in an interest rate spread of 4.30 percent, which was higher than the
comparable group at 2.95 percent, all thrifts at 2.82 percent, Midwest thrifts
at 2.70 percent, and Illinois thrifts at 2.63 percent. Preferred demonstrated a
strong net interest margin of 5.10 percent for the twelve months ended May 31,
1996, based on average interest-earning assets, which was considerably higher
than the comparable group ratio of 3.78 percent. All thrifts averaged a lower
3.34 percent net interest margin for the trailing four quarters, as did Midwest
thrifts at 3.32 percent and Illinois thrifts at 3.18 percent.
Preferred's major source of income is interest earnings, as is
evidenced by the operations ratios presented in Exhibit 45. The Bank made a
$50,000 provision for loan losses during the twelve months ended May 31, 1996,
which reflects the Bank's moderate
52
Analysis of Financial Performance (cont.)
level of nonperforming assets and classified assets. The comparable group
indicated a provision representing 0.10 percent of assets, with all thrifts at
0.11 percent, Midwest thrifts at 0.08 percent and Illinois thrifts at 0.08
percent.
The Bank's non-interest income was $61,000 or 0.11 percent of average
assets for the twelve months ended May 31, 1996. Such non-interest income was
significantly lower than the comparable group at 0.23 percent of assets, all
thrifts at 0.44 percent, Midwest thrifts at 0.40 percent and Illinois thrifts at
0.40 percent. For the twelve months ended May 31, 1996, Preferred's operating
expense ratio was 1.89 percent, lower than the comparable group and the three
geographical averages. The comparable group's operating expense ratio was 2.05
percent, while all thrifts averaged 2.29 percent, Midwest thrifts averaged 2.20
percent and Illinois thrifts averaged 2.33 percent.
The overall impact of Preferred's income and expense ratios is
reflected in the Bank's income and return on assets. The Bank had a strong ROAA,
based on both net and core income, of 1.87 percent for the twelve months ended
May 31, 1996. For its most recent four quarters, the comparable group had a
lower ROAA of 1.17 percent based on net income and an even lower ROAA of 1.06
percent based on core income. All thrifts averaged a lower net ROAA of 0.87
percent, while Midwest thrifts and Illinois thrifts averaged a higher 0.92
percent and 0.74 percent, respectively. All thrifts indicated a core ROAA of
0.80 percent, while Midwest thrifts and Illinois thrifts averaged a core ROAA of
0.86 percent and 0.69 percent, respectively, considerably lower than the Bank.
53
V. MARKET VALUE ADJUSTMENTS
This is a conclusive section where adjustments are made to determine
the pro forma market value or appraised value of the Corporation based on a
comparison of Preferred with the comparable group. These adjustments will take
into consideration such key items as earnings performance, market area,
financial condition, dividend payments, subscription interest, liquidity of the
stock to be issued, management, and market conditions or marketing of the issue.
It must be remembered that all of the institutions in the comparable group have
their differences, and as a result, such adjustments become necessary.
EARNINGS PERFORMANCE
In analyzing earnings performance, consideration was given to the level
of net interest income, the level and volatility of interest income and interest
expense relative to changes in market area conditions and to changes in overall
interest rates, the quality of assets as it relates to the presence of problem
assets which may result in adjustments to earnings, the level of current and
historical classified assets and real estate owned, the level of valuation
allowances to support any problem assets or nonperforming assets, the level and
volatility of non-interest income, and the level of non-interest expenses.
As discussed earlier, the Bank's historical business philosophy has
focused on maintaining its strong level of net interest income, reducing its
current level of nonperforming assets, establishing a reasonable level of
interest sensitive assets relative to interest sensitive liabilities,
maintaining its stable and strong net earnings level, maintaining an adequate
level of general valuation allowances to reduce the impact of any unforeseen
losses on real estate owned and closely scrutinizing and maintaining its lower
level of overhead expenses. The Bank's current philosophy will continue to focus
on striving to further increase its strong net interest spread and net interest
margin through
54
Earnings Performance (cont.)
more active lending, increase its net income and return on assets and increase
its level of interest sensitive assets relative to interest sensitive
liabilities.
Earnings are often related to an institution's ability to generate
loans. The Bank was an active originator of mortgage loans in fiscal years 1993
to 1995. During the twelve months ended May 31, 1996, originations were similar
to those in fiscal year 1993, lower than in fiscal year 1994 and higher than in
fiscal year 1995. Originations during the twelve months ended May 31, 1996, were
approximately 6.0 percent lower than in fiscal year 1994, but approximately 23.0
percent higher than in fiscal year 1995, with a the majority of such increase in
the categories of commercial and multi-family real estate loans. Preferred
experienced a significant decreasing trend in principal repayment levels from
fiscal year 1993 to fiscal year 1995. Notwithstanding a modest increase in
principal repayments during the twelve months ended May 31, 1996, related to
moderating interest rates in late 1995, which was more than offset by the
previously mentioned increase in originations during that period, the Bank's net
loans increased steadily by $4.9 million or 15.9 percent from December 31, 1993
to May 31, 1996. The Bank's focus in fiscal years 1993, 1994 and 1995, and for
the twelve months ended May 31, 1996, was on the origination of one- to
four-family mortgage loans, with that loan category constituting 84.4 percent,
73.5 percent, 71.1 percent and 62.8 percent of total origination in those four
periods, respectively. In those four periods, the second largest category of
originations was commercial real estate loans, followed by multi-family real
estate loans and deposit loans. The impact of these primary lending efforts has
been to generate a yield on average interest-earning assets of 8.44 percent for
Preferred for the twelve months ended May 31, 1996, compared to 8.05 percent for
the comparable group, 7.73 percent for all thrifts and 7.71 for Midwest thrifts.
The Bank's level of interest income to average assets was 8.10 percent for the
twelve months ended May 31, 1996, which was higher than the comparable group at
7.65 percent, Midwest thrifts at 7.41 percent and all thrifts at 7.42 percent
for their most recent four quarters.
55
Earnings Performance (cont.)
The Bank's net interest margin of 5.10 percent, based on average
interest-earning assets for the twelve months ended May 31, 1996, was
considerably higher than the comparable group at 3.78 percent and more
significantly higher than all thrifts at 3.32 percent. Preferred's cost of
interest-bearing liabilities of 4.14 percent for the twelve months ended May 31,
1996, was lower than the comparable group at 5.10 percent, and also lower than
all thrifts at 4.91 percent and Midwest thrifts at 5.01 percent. Preferred's net
interest spread of 4.30 percent for the twelve months ended May 31, 1996, was
much higher than the comparable group at 2.95 percent, Midwest thrifts at 2.70
percent and all thrifts at 2.82 percent.
The Bank's ratio of noninterest income to assets was 0.11 percent for
the twelve months ended May 31, 1996, lower than the comparable group at 0.23
percent, all thrifts at 0.44 percent and Midwest thrifts at 0.40 percent. The
Bank has indicated lower noninterest income relative to the comparable group,
but its operating expenses have also been lower than the comparable group, as
well as Midwest thrifts and all thrifts. For the twelve months ended May 31,
1996, Preferred had an operating expenses to assets ratio of 1.89 percent
compared to a higher 2.05 percent for the comparable group, 2.29 percent for all
thrifts and 2.20 percent for Midwest thrifts.
For the twelve months ended May 31, 1996, Preferred generated lower
levels of noninterest income, modestly lower levels of noninterest expenses, and
a much higher net interest margin relative to its comparable group. As a result,
the Bank's net income level was considerably higher than its comparable group
for the twelve months ended May 31, 1996. Based on net earnings, the Bank had a
return on average assets of 1.74 percent in fiscal year 1992, 1.96 percent in
fiscal year 1993, 1.83 percent in the ten-month fiscal year ended December 31,
1993, 1.46 percent in fiscal year 1994, 1.99 percent in fiscal year 1995, and
1.87 percent for the twelve months ended May 31, 1996. For its most recent four
quarters, the comparable group had a lower ROAA of 1.17 percent, while all
thrifts indicated a lower 0.80 percent. The Bank's core or normalized earnings
as shown in
56
Earnings Performance (cont.)
Exhibit 7 were identical to net earnings, indicating a 1.87 percent core return
on assets for the most recent twelve months ended May 31, 1996. That core ROAA
was higher than the comparable group at 1.06 percent, all thrifts at 0.80
percent and lower than Midwest thrifts at 0.86 percent.
Preferred's earnings stream will continue to be largely dependent on
the overall trends in interest rates, with the consistency and reliability of
its non-interest income constituting a modest factor. The Bank's cost of
interest-bearing liabilities will continue to adjust upward as deposits reprice
at higher rates and continue their gradual movement toward longer term
instruments. This upward pressure on savings costs is likely to continue based
on current rates, although the rate of increase may subside somewhat during the
next few years. In recognition of the foregoing earnings related factors, a
moderate upward adjustment has been made to Preferred's pro forma market value
for earnings performance.
MARKET AREA
Preferred's primary market area consists of Cook County, Illinois,
including the City of Chicago, the location of the Bank's home office. As
discussed in Section II, this market area has evidenced lower population growth
in relation to the comparable group markets. Per capita and household income
levels are similar to state averages but above both the national and the
comparable group averages. The unemployment rate in Preferred's market area
county averaged 5.4 percent in March, 1996, compared to 5.2 percent for Illinois
and 5.8 percent for the United States. The market area county is also
characterized by a higher median housing value than Illinois, the United States
and the comparable group. The market area is largely urban, with the
manufacturing industry as the major industrial group, followed by the services
sector with the wholesale/retail sector third. The level of financial
competition is strong and dominated by the Banking industry.
57
Market Area (cont.)
Preferred's deposits showed very modest growth in fiscal years 1993, 1994 and
1995 as deposits, including interest, were similar to withdrawals. In fiscal
year 1995, deposits exceeded withdrawals by 2.5 percent, and in the first five
months of 1996, deposits increased 2.2 percent or 5.3 percent, annualized. In
recognition of all these factors, we believe that a minimum downward adjustment
is warranted for the Bank's market area.
FINANCIAL CONDITION
The financial condition of Preferred is discussed in Section I and
shown in Exhibits 1, 2, 5, 15, 16 and 17, and is compared to the comparable
group in Exhibits 40, 42 and 43. The Bank's total equity ratio before conversion
was 21.93 percent at May 31, 1996, which was moderately higher than the
comparable group at 16.59 percent and more significantly higher than Midwest
thrifts at 14.13 percent and all thrifts at 12.85 percent. With a conversion at
the midpoint, the Corporation's pro forma equity to assets ratio will increase
to 36.75 percent, and the Bank's pro forma equity to assets ratio will increase
to 34.11 percent.
The Bank's mix of assets indicates some area of significant variation
from its comparable group. Preferred had a lower share of net loans at 65.09
percent of total assets at May 31, 1996, compared to the comparable group at
71.23 percent, but a similar share to all thrifts at 66.68 percent. The Bank's
25.84 percent share of cash and investments was modestly higher than the
comparable group at 20.70 percent and more significantly higher than all thrifts
at 14.97 percent and Midwest thrifts at 18.00 percent. Preferred's ratio of
mortgage-backed securities to total assets was 7.08 percent, generally in line
with the comparable group at 6.00 percent, but lower than all thrifts at 14.02
percent. The Bank had a higher share of deposits at 76.47 percent with no FHLB
advances, compared to the comparable group's 68.49 percent in deposits and 13.46
percent in borrowed funds.
58
Financial Condition (cont.)
At May 31, 1996, the Bank was absent both goodwill and repossessed real
estate compared to 0.04 percent and 0.63 percent of repossessed real estate for
the comparable group and all thrifts, respectively. Preferred was also absent
goodwill and repossessed assets at the close of fiscal years 1992 through 1995.
The financial condition of Preferred is further affected by its level of
nonperforming assets at 1.09 percent of assets at May 31, 1996, compared to a
lower 0.53 percent for the comparable group. The Bank's ratio of nonperforming
assets to total assets increased from 0.45 percent in fiscal year 1992 to 1.45
percent at December 31, 1995, before decreasing to its May 31, 1996, level of
1.09 percent.
Due to the Bank's origination of only fixed-rate mortgage loans, its
interest rate risk and sensitivity measure are less favorable than industry
averages and it currently is reporting a negative one year gap of 46.02 percent.
The Bank had a higher share of high risk real estate loans at 18.70
percent compared to 13.79 percent for the comparable group and 14.77 percent for
all thrifts. Preferred had $186,000 in general valuation allowances or 10.81
percent of nonperforming assets at May 31, 1996, compared to the comparable
group's higher 117.26 percent, with Midwest thrifts at 147.40 percent and all
thrifts at a lower 87.73 percent. The Bank's ratio is reflective of its current
and historical absence of repossessed real estate.
Overall, we believe that a minimum upward adjustment is warranted for
Preferred's current financial condition.
59
DIVIDEND PAYMENTS
Preferred has not indicated its intention to pay an initial cash
dividend. The future payment of cash dividends will be dependent upon such
factors as earnings performance, capital position, growth level, and regulatory
limitations. Eight of the ten institutions in the comparable group pay cash
dividends for an average dividend yield of 3.66 percent for those nine
institutions, and an average dividend yield of 2.93 percent for all ten
institutions.
Currently, many thrifts are committing to initial cash dividends in
comparison to the more common absence of such a dividend commitment in 1994 and
1995 conversions. As a result, we believe that a minimum downward adjustment to
the pro forma market value is warranted at this time related to dividend
payments.
SUBSCRIPTION INTEREST
The general interest in thrift conversion offerings was often difficult
to gauge in 1995. Based upon recent offerings, subscription and community
interest weakened significantly in early 1995 but regained some strength by the
second half of the year. Such interest has frequently been directly related to
the financial performance and condition of the thrift institution converting,
the strength of the local economy, general market conditions and aftermarket
price trends.
Preferred will focus its offering to depositors and residents in the
market area. The board of directors and officers anticipate purchasing
approximately $950,000 or 5.76 percent of the conversion stock based on the
appraised midpoint valuation. Preferred will form an 8.0 percent ESOP, which
plans to purchase stock in the initial offering. Additionally, the Prospectus
specifies that in the subscription offering, no person or single account holder
may purchase more than $150,000 of the Corporation's common stock, or one-tenth
of one percent of the total shares offered in the conversion, whichever is
greater.
60
Subscription Interest (cont.)
The Bank has secured the services of Charles Webb & Company ("Webb") to
assist the Bank in the marketing and sale of the conversion stock. Based on the
size of the offering, current market conditions, local market interest and the
terms of the offering, we believe that a minimum downward adjustment is
warranted for the Bank's anticipated subscription interest.
LIQUIDITY OF THE STOCK
Preferred will offer its shares through concurrent subscription and
community offerings with the assistance of Webb. If necessary, Webb will conduct
a syndicated community offering upon the completion of the subscription and
community offering. Preferred will pursue two market makers for the stock. The
Bank's offering is smaller in size to that of the comparable group, considerably
below the national average and, more significantly, approximately 77.5 percent
below the Illinois average. It is likely, therefore, that the stock of Preferred
will be somewhat less liquid than thrift stocks nationally and in its Illinois
market area. Therefore, we believe that a moderate downward adjustment to the
pro forma market value is warranted at this time relative to the liquidity of
the stock.
61
MANAGEMENT
The president and chief executive officer of Preferred is Kimberly P.
Rooney, who has held that position and that of director since 1995. Prior to
joining the Bank as president, Ms. Rooney was in private law practice in Cicero,
Illinois, and also served as attorney for the Bank. Ms. Rooney continues the
concerted efforts of management to increase deposits and market share and to
strengthen local lending activity.
Preferred has been able to strengthen its equity position over the past
several years and its earnings, net interest spread and net interest margin have
been both strong and stable since 1992 and are significantly higher than
comparable group and industry averages. It is our opinion that a minimum upward
adjustment to the pro forma market value is warranted for management.
MARKETING OF THE ISSUE
The response to a newly issued thrift institution stock is more
difficult to predict, due to the volatility of new thrift stocks. Further, with
each conversion, there is a high level of uncertainty with regard to the stock
market particularly thrift institution stocks and interest rate trends. The
impact of recent increases in interest rates has made it more difficult for more
thrift institutions to strengthen their earnings and resulted in downward market
prices. Recent conflicts of opinion on interest rate trends and the recent rise
in interest rates have resulted in some significant stock volatility. Further,
the impact of the difference in a thrift's premium level on deposits compared to
BIF-insured institutions is another key concern, along with the one time
assessment of SAIF-insured thrifts to increase the capitalization of the SAIF
insurance fund.
The necessity to build a new issue discount into the stock price of a
converting thrift has prevailed in the thrift industry in recognition of higher
uncertainty among
62
Marketing of the Issue (cont.)
investors as a result of the thrift industry's dependence on interest rate
trends. We believe that a new issue discount applied to the price to book
valuation approach continues and is considered to be reasonable and necessary in
the pricing of the Corporation, and we have made a maximum downward adjustment
to the Corporation's pro forma market value in recognition of the new issue
discount.
63
VI. VALUATION METHODS
Under normal stock market conditions, the most frequently used method
for determining the pro forma market value of common stock for thrift
institutions by this firm is the price to book value ratio method. The focus on
the price to book value method is due to the volatility of earnings in the
thrift industry. As earnings in the thrift industry improved in late 1993, 1994
and 1995, there has been more emphasis placed on the price to earnings method,
but the price to book value method continues to be the primary valuation method.
These two pricing methods have both been used in determining the pro forma
market value of the Corporation.
In recognition of the volatility and variance in earnings due to
fluctuations in interest rates, the continued differences in asset and liability
repricing and the frequent disparity in value between the price to book approach
and the price to earnings approach, a third valuation method has been used, the
price to net assets method. The price to net assets method is used less often
for valuing ongoing institutions; however, this method becomes more useful in
valuing converting institutions when the equity position and earnings
performance of the institutions under consideration are different.
In addition to the pro forma market value, we have defined a valuation
range with the minimum of the range being 85.0 percent of the pro forma market
value, the maximum of the range being 115.0 percent of the pro forma market
value, and a super maximum being 115.0 percent of the maximum. The pro forma
market value or appraised value will also be referred to as the "midpoint
value".
64
PRICE TO BOOK VALUE METHOD
The price to book value method focuses on a thrift institution's
financial condition, and does not give as much consideration to the
institution's performance as measured by net earnings. Therefore, this method is
sometimes considered less meaningful for institutions that do provide a
consistent earnings trend. Due to the earnings volatility of many thrift stocks,
the price to book value method is frequently used by investors who rely on an
institution's financial condition rather than earnings performance.
Consideration was given to the adjustments to the Bank's pro forma
market value discussed in Section V. Minimum upward adjustments were made for
financial condition and management. A moderate upward adjustment was made for
earnings performance. Minimum downward adjustments were made for market area,
dividend payments and subscription interest. A moderate downward adjustment was
made for the liquidity of the stock. A maximum downward adjustment was made for
the marketing of the issue.
Exhibit 48 shows the average and median price to book value ratios for
the comparable group which were 89.48 percent and 88.18 percent, respectively.
The total comparable group indicated a moderately wide range, from a low of
76.21 percent (Northwest Equity Corp.) to a high of 104.93 percent (CB Bancorp,
Inc.). This variance cannot be attributed to any one factor such as the
institution's equity ratio or earnings performance. Excluding the low and the
high in this group, the price to book value range narrowed only slightly from a
low of 82.37 percent to a high of 104.28 percent.
Taking into consideration all of the previously mentioned items in
conjunction with the adjustments made in Section V, we have determined a pro
forma price to book value ratio of 63.39 percent at the midpoint and ranging
from a low of 58.73 percent at the minimum to a high of 71.21 percent at the
super maximum for the Corporation, which is strongly influenced by the Bank's
local market and subscription interest in thrift stocks. Further, the Bank's
equity to assets after conversion will be 36.75 percent compared to
65
Price to Book Value Method (cont.)
16.59 percent for the comparable group. Based on this price to book value ratio
and the Bank's equity of $12,029,000 at May 31, 1996, the indicated pro forma
market value for the Bank using this approach is $16,498,581 (reference Exhibit
49).
PRICE TO EARNINGS METHOD
The focal point of this method is the determination of the earnings
base to be used and secondly, the determination of an appropriate price to
earnings multiple. The recent earnings position of Preferred is displayed in
Exhibit 3, indicating after tax net earnings for the twelve months ended May 31,
1996, of $1,006,000. Exhibit 7 indicates the derivation of the Bank's identical
core or normalized earnings of $1,006,000 for the twelve months ended May 31,
1996. To arrive at the pro forma market value of the Bank by means of the price
to earnings method, we used the net and core earnings base of $1,006,000.
In determining the price to earnings multiple, we reviewed the range of
price to core earnings multiples for the comparable group and all
publicly-traded thrifts. The average price to net earnings multiple for the
comparable group was 13.97, while the median was 13.47. The average price to
core earnings multiple was 16.35, and the median multiple was 15.29. The
comparable group's price to net earnings multiple was lower than the average for
all publicly-traded thrifts of 16.28, but higher than their median of 13.48. The
price to core earnings multiple for all publicly-traded thrifts was also higher
than the comparable group with an average at 17.66 times core earnings and a
median at 14.52 times core earnings. The range in the price to net earnings
multiple for the comparable group was from a low of 8.21 (CB Bancorp, Inc.) to a
high of 19.95 (Western Ohio Financial Corp.). The primary range in the price to
net earnings multiple for the comparable group excluding the high and low ranges
was from a low price to earnings multiple of 11.14 to a high of 16.83 times
earnings for eight of the ten institutions in the group.
66
Price to Earnings Method (cont.)
Consideration was given to the adjustments to the Corporation's pro
forma market value discussed in Section V. In recognition of these adjustments,
we have determined a price to earnings multiple of 12.80 based on Preferred's
net and core earnings of $1,006,000 for twelve months ended May 31, 1996. Based
on such an earnings base of $1,006,000 and a price to earnings multiple of 12.80
(reference Exhibits 48 and 49), the pro forma market value of the Corporation
using the price to core earnings ratio method is $16,501,667 at the midpoint.
The range in the price to core earnings multiple is from a low of 11.26 at the
minimum of the range to a high of 15.77 at the super maximum of the range.
PRICE TO NET ASSETS METHOD
The final valuation method is the price to net assets method. This
method is not as frequently used due to the fact that it does not focus as much
on an institution's equity position or earnings performance. Exhibit 48
indicates that the average price to net assets ratio for the comparable group
was 14.85 percent and the median was 15.27 percent. The range in the price to
net assets ratios for the comparable group varied from a low of 10.36 percent
(CB Bancorp, Inc.) to a high of 21.75 percent (Marion Capital Holdings). It
narrows modestly with the elimination of the two extremes in the group to a low
of 10.56 percent and a high of 16.71 percent.
Based on the adjustments made previously for Preferred, it is our
opinion that an appropriate price to net assets ratio for the Corporation is
23.29 percent which is higher than the comparable group at 14.85 and ranges from
a low of 20.51 percent at the minimum to 28.68 percent at the super maximum.
Based on the Bank's May 31, 1996, asset base of $54,853,000, the indicated pro
forma market value of the Corporation using the price to net assets method is
$16,498,249 (reference Exhibit 49).
67
VALUATION CONCLUSION
Exhibit 54 provides a summary of the valuation premium or discount for
each of the valuation ranges when compared to the comparable group based on each
of the valuation approaches. At the midpoint value, the price to book value
ratio of 63.39 percent for the Corporation represents a discount of 29.15
percent relative to the comparable group and decreases to 20.71 percent at the
super maximum. The identical price to net earnings and core earnings multiple of
12.80 for the Corporation at the midpoint value indicates a discount of 8.38
percent, changing to a premium of 12.86 percent at the super maximum. The price
to assets ratio at the midpoint represents a premium of 56.86 percent,
increasing to a premium of 93.13 percent at the super maximum.
It is our opinion that as of August 9, 1996, the pro forma market value
of the common stock to be issued of the Corporation is $16,500,000 representing
1,650,000 shares at $10.00 per share. The valuation range for this stock is from
a minimum of $14,025,000 or 1,402,500 shares at $10.00 per share to a maximum of
$18,975,000 or 1,897,500 shares at $10.00 per share, with such range being
defined as 15 percent below the appraised value to 15 percent above the
appraised value. The super maximum is $21,821,250 or 2,182,175 shares at $10.00
per share (reference Exhibits 50 to 53). The appraised value of PS Financial,
Inc. as of August 9, 1996, is $16,500,000.
68
NUMERICAL
EXHIBITS
EXHIBIT 1
PREFERRED SAVINGS BANK
CHICAGO, ILLINOIS
BALANCE SHEET
At May 31, 1996, and At December 31, 1995
May 31, December 31,
1996 1995
------------- -------------
ASSETS (Unaudited)
(In thousands)
Cash on hand and in banks $ 362 $ 916
Interest-bearing term deposit accounts in other
financial institutions 2,510 2,838
-------- --------
Total cash and cash equivalents 2,872 3,754
Interest-bearing term deposits in other financial
institutions 248 248
Securities available-for-sale 11,058 9,739
Mortgage-backed securities available-for-sale 3,884 4,220
Securities held-to-maturity -- --
Loans receivable, net 35,701 34,525
Federal Home Loan Bank stock 362 341
Premises and equipment, net 457 467
Accrued interest receivable 247 181
Other assets 24 45
-------- --------
TOTAL ASSETS $ 54,853 $ 53,520
======== ========
LIABILITIES AND EQUITY
LIABILITIES
Deposits $ 41,945 $ 41,047
Advances from borrowers for taxes and insurance 409 459
Other liabilities and deferred income taxes 470 290
-------- --------
TOTAL LIABILITIES 42,824 41,796
EQUITY
Retained earnings, substantially restricted 12,107 11,667
Net unrealized gain (loss) on securities
available-for-sale (78) 57
-------- --------
12,029 11,724
-------- --------
TOTAL LIABILITIES AND EQUITY $ 54,853 $ 53,520
======== ========
Source: Preferred Savings Bank's audited and unaudited financial statements
69
EXHIBIT 2
PREFERRED SAVINGS BANK
CHICAGO, ILLINOIS
BALANCE SHEET
At December 31, 1993 and 1994,
At February 29, 1992, and February 28, 1993
December 31, February 28, February 29,
---------------------- --------------------------
ASSETS 1994 1993 1993 1992
---------- --------- --------- ---------
(In thousands)
Cash on hand and in banks $ 620 $ 981 $ 193 $ 379
Short-term investments
Interest-bearing deposit accounts in other
financial institutions 809 2,479 167 169
Federal funds sold, repurchase agreements
and other short-term investments -- 2,414 2,085 5,149
-------- -------- -------- --------
Total cash and cash equivalents 1,429 5,874 2,445 5,697
Interest-bearing term deposits in other financial
institutions 5,251 4,671 4,297 4,196
Securities available-for-sale 7,326 9,044 -- --
Mortgage-backed securities available-for-sale 1,694 -- -- --
Securities held-to-maturity (fair value: December 31,
1994 - $1,820, 1993 - $414, February 28, 1993 -
$887, February 29, 1992 - $626, February 28,
1991 - $626, February 29, 1990 - $603 201 403 855 607
Marketable equity securities -- -- 8,651 3,398
Mortgage-backed securities held to maturity 1,792 2,026 -- --
Loans receivable, net 32,890 30,821 32,716 31,706
Federal Home Loan Bank stock 309 348 348 329
Premises and equipment, net 457 466 461 472
Accrued interest receivable 105 44 31 40
Other assets 166 157 170 38
-------- -------- -------- --------
TOTAL ASSETS $ 51,620 $ 53,854 $ 49,974 $ 46,483
======== ======== ======== ========
LIABILITIES AND EQUITY
LIABILITIES
Deposits $ 40,057 $ 41,139 $ 40,363 $ 37,950
Advances from borrowers for taxes and insurance 855 805 441 422
Other liabilities and deferred income taxes 195 2,265 337 213
-------- -------- -------- --------
TOTAL LIABILITIES $ 41,107 $ 44,209 $ 41,141 $ 38,585
-------- -------- -------- --------
EQUITY
Retained earnings, substantially restricted 10,613 9,855 8,913 7,911
Net unrealized gain (loss) on securities available-for-sale (101) (210) (80) (13)
-------- -------- -------- --------
10,512 9,645 8,833 7,898
-------- -------- -------- --------
TOTAL LIABILITIES AND EQUITY $ 51,619 $ 53,854 $ 49,974 $ 46,483
======== ======== ======== ========
Source: Preferred Savings Bank's audited financial statements
70
EXHIBIT 3
PREFERRED SAVINGS BANK
CHICAGO, ILLINOIS
Consolidated Statements of Income
For the five months ended May 31, 1995 and 1996,
And the year ended December 31, 1995
Five months ended
May 31, Year ended
-------------------- December 31,
1996 1995 1995
-------- ------- --------
(Unaudited)
(In thousands)
Interest income:
Loans receivable $1,377 $1,313 $3,156
Securities 477 445 1,113
------ ------ ------
1,854 1,758 4,269
Interest expense on deposit accounts 725 632 1,633
------ ------ ------
Net interest income 1,129 1,126 2,636
Provision for loan losses 50 -- --
------ ------ ------
Net interest income after provision for
loan losses 1,079 1,126 2,636
Noninterest income
Other 27 24 58
------ ------ ------
27 24 58
Noninterest expense:
Compensation and benefits 182 192 627
Occupancy and equipment expense 63 58 150
Federal deposit insurance premiums 40 39 93
Other operating expenses 68 55 139
------ ------ ------
Total noninterest expense 353 344 1,009
------ ------ ------
Income before income tax provision 752 806 1,685
Provision for income taxes 312 317 630
------ ------ ------
Net income $ 440 $ 489 $1,055
====== ====== ======
Source: Preferred Savings Bank's audited and unaudited financial statements
71
EXHIBIT 4
PREFERRED SAVINGS BANK
CHICAGO, ILLINOIS
Consolidated Statements of Income
Fiscal Year Ended December 31, 1994, the Ten Months Ended December 31, 1993,and
Fiscal Years Ended February 29, 1992, and February 28,1993
Ten months
Year ended ended Year ended Year ended
December 31, December 31, February 28, February 29,
1994 1993 1993 1992
------------ ------------ ------------ ------------
(In thousands)
Interest income:
Loans $ 3,014 $ 2,782 $ 3,459 $ 3,541
Securities 840 619 725 724
------- ------- ------- -------
3,854 3,401 4,184 4,265
Interest expense on deposits 1,310 1,169 1,735 2,154
------- ------- ------- -------
Net interest income 2,544 2,232 2,449 2,111
Provision for loan losses 42 27 24 24
------- ------- ------- -------
Net interest income after provision for
loan losses 2,502 2,205 2,425 2,087
Noninterest income:
Net loss on sale of securities (365) (28) -- 89
Other 76 40 39 46
------- ------- ------- -------
(289) 12 39 135
Noninterest expense:
Compensation and benefits 429 319 381 371
Occupancy and equipment expense 157 123 139 142
Federal deposit insurance premiums 94 78 101 95
Other operating expenses 158 127 199 169
------- ------- ------- -------
Total noninterest expense 838 647 820 777
------- ------- ------- -------
Income before income tax provision 1,375 1,570 1,644 1,445
Provision for income taxes 617 628 643 562
------- ------- ------- -------
Net income $ 758 $ 942 $ 1,001 $ 883
======= ======= ======= =======
72
Source: Preferred Savings Bank's audited financial statements
EXHIBIT 5
Selected Consolidated Financial Information and Other Data
At May 31, 1996, at December 31, 1993 through 1995, at
February 28, 1993, and at February 29, 1992
December 31,
May 31, ----------------------------------- February 28, February 29,
1996 1995 1994 1993 1993 1992
---------- ---------- ---------- ---------- ----------- ----------
(In thousands)
Selected Financial
Condition Data:
Total assets $ 54,853 $ 53,520 $ 51,619 $ 53,854 $ 49,974 $ 46,483
Cash and cash equivalents 2,871 3,754 1,429 5,874 2,445 5,697
Loans receivable, net 35,702 34,525 32,890 30,821 32,716 31,706
Mortgage-backed securities
Held-to-maturity - - 1,792 2,026 - -
Available-for-sale 3,884 4,220 1,694 - - -
Securities
Held-to-maturity - - 201 403 855 607
Available-for-sale 11,058 9,739 7,326 9,044 8,652 3,398
Deposits 41,945 41,047 40,057 41,139 40,363 37,950
Total equity 12,029 11,724 10,512 9,645 8,833 7,898
Source: PS Financial's Prospectus
73
EXHIBIT 6
Income and Expense Trends
For the Five Months Ended May 31, 1995 and 1996,
For the Fiscal Years Ended December 31, 1994 and 1995,
The Ten Months Ended December 31, 1993, and
The Years Ended February 29, 1992, and February 28, 1993
Five months ended Year ended Ten months Year ended
May 31, December 31, Ended ------------------------
----------------------- ----------------------- December 31, February 28 February 29,
1996 1995 1995 1994 1993 1993 1992
----------- ---------- ---------- ----------- ---------- ---------- -----------
(In thousands)
Selected Operating Data:
Total interest income $ 1,853 $ 1,758 $ 4,268 $ 3,854 $ 3,401 $ 4,183 $ 4,265
Total interest expense 725 632 1,632 1,310 1,169 1,734 2,154
----------- ---------- ---------- ----------- ---------- ---------- -----------
Net interest income 1,128 1,126 2,636 2,544 2,232 2,449 2,111
Provision for loan losses 50 - - 42 27 24 24
----------- ---------- ---------- ----------- ---------- ---------- -----------
Net interest income after
provision for estimated
loan losses 1,078 1,126 2,636 2,502 2,205 2,425 2,087
Fees and service charges 27 24 58 76 40 39 46
Gain (loss) on sales of loans
and securities - - - (365) (28) - 89
Other non-interest income - - - - - - -
----------- ---------- ---------- ----------- ---------- ---------- -----------
Total non-interest income 27 24 58 (289) 12 39 135
Total non-interest expense 353 344 1,009 838 647 820 777
----------- ---------- ---------- ----------- ---------- ---------- -----------
Income before taxes 752 806 1,685 1,375 1,570 1,644 1,445
Income tax provision 312 317 630 617 628 643 562
----------- ---------- ---------- ----------- ---------- ---------- -----------
Net income $ 440 $ 489 $ 1,055 $ 758 $ 942 $ 1,001 $ 883
=========== ========== ========== =========== ========== ========== ===========
Source: PS Financial's Prospectus
74
EXHIBIT 7
Normalized Earnings Trend
For the Twelve Months Ended May 31, 1996, and
For the Fiscal Years Ended December 31, 1994 and 1995, and for the
Ten Months Ended December 31, 1993
Twelve months Fiscal years ended Ten Months
ended December 31, Ended
May 31, ------------------------ December 31,
1996 1995 1994 1993
------------ ----------- ----------- ----------------
(Dollars In thousands)
Net income after taxes $ 1,006 $ 1,055 $ 758 $ 942
Net income before taxes and effect
of accounting adjustments 1,631 1,685 1,375 1,570
Income adjustments --- --- --- ---
Expense adjustments --- --- (365) (28)
Normalized earnings before taxes 1,631 1,685 1,740 1,598
Taxes 625 630 679(1) 623(1)
------------ ----------- ----------- ----------------
Normalized earnings after taxes $ 1,006 $ 1,055 $ 1,061 $ 975
============ =========== =========== ================
(1) Based on tax rate of 39.0 percent
Source: PS Financial's audited and unaudited financials.
75
EXHIBIT 8
Performance Indicators
For The Five Months Ended May 31, 1995 and 1996,
For The Fiscal Years Ended December 31, 1994 and 1995,
For the Ten Months Ended December 31,1993, and
For the Fiscal Years Ended February 29, 1992, and February 28, 1993
10 Months Year ended
Five Months Years ended Ended -------------------------
Ended May 31, December 31, December 31, February 28, February 29,
---------------------- --------------- ------------- -------------------------
1996 1995 1995 1994 1993 1993 1992
---------- ---------- ------------------ ------------ ----------- ----------
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on average assets (1) 1.94% 2.25% 1.99% 1.46% 1.83% 1.96% 1.74%
Return on average equity (1) 8.88% 10.84% 9.42% 7.53% 10.21% 11.82% 11.22%
Interest rate spread information:
Average during period (1) 4.20% 4.54% 4.26% 4.38% 4.78% 3.96% 2.58%
End of period 3.70% 4.03% 3.71% 4.26% 3.97% 3.79% 3.17%
Net interest margin (1) (2) 5.09% 5.33% 5.13% 5.03% 5.39% 4.88% 4.25%
Efficiency ratio (3) 30.54% 29.91% 37.45% 37.16% 28.82% 32.96% 34.59%
Ratio of operating expense to
average total assets 1.56% 1.58% 1.91% 1.61% 1.26% 1.60% 1.53%
Ratio of average interest-earning assets
to average interest-bearing liabilities 127.58% 127.06% 127.21% 125.08% 121.78% 126.60% 138.71%
Quality Ratios:
Non performing assets to total
assets at end of period 1.09% 0.43% 1.45% 0.65% 0.33% 0.21% 0.45%
Allowance for loan losses to
non-performing loans 10.81% 12.49% 6.49% 10.19% 9.64% 8.01% 5.11%
Allowance for loan losses to loans
receivable, net 0.51% 0.38% 0.39% 0.41% 0.30% 0.20% 0.13%
Capital Ratios:
Equity to total assets at end of period 21.93% 21.07% 21.91% 20.36% 17.91% 17.68% 16.99%
Average equity to average assets 21.86% 20.75% 21.18% 19.32% 17.93% 16.56% 15.51%
(1) Ratios for the five and ten month periods have been annualized.
(2) Net interest income divided by average interest earning assets.
(3) The efficiency ratio represents noninterest expense as a percent of net
interest income and noninterest income.
Source: PS Financial's Prospectus
76
EXHIBIT 9
Volume/Rate Analysis
For the Five Months Ended May 31, 1996, and
For the Fiscal Years Ended December 31, 1994 and 1995
Five Months Ended
May 31, Year ended December 31,
1995 vs. 1996 1994 vs. 1995
-------------------------------- ---------------------------------
Increase Increase
(Decrease) (Decrease)
Due to Total Due to Total
--------------------- Increase -------------------- Increase
Volume Rate (Decrease) Volume Rate (Decrease)
--------- --------- ---------- -------- --------- -----------
(In thousands)
Interest-earning assets:
Loans receivable $ 59 $ 5 $ 64 $ 228 $ (86) $ 142
Mortgage-backed securities 13 12 25 (2) 16 14
Investment securities 86 (7) 79 99 226 325
Other (70) (3) (73) (186) 119 (67)
--------- --------- --------- --------- --------- ---------
Total interest-earning assets $ 88 $ 7 $ 95 $ 139 $ 275 $ 414
========= ========= ========= ========= ========= =========
Interest-bearing liabilities:
Savings deposits $ (7) $ (2) $ (9) $ (70) $ 40 $ (30)
Certificate accounts 48 54 102 95 257 352
--------- --------- --------- --------- --------- ---------
Total interest-bearing liabilities $ 41 $ 52 $ 93 $ 25 $ 297 $ 322
========= ========= --------- ========= ========= ---------
Net interest income $ 2 $ 92
========= =========
[RESTUBBED FROM TABLE ABOVE]
10 Months Ended
December 31, 1993,
Annualized vs. Year Ended
December 31,1994
----------------------------------
Increase
(Decrease)
Due to Total
-------------------- Increase
Volume Rate (Decrease)
----------- --------- -----------
Interest-earning assets:
Loans receivable $ (102) $ (225) $ (327)
Mortgage-backed securities 144 26 170
Investment securities (116) (26) (142)
Other 44 27 71
--------- --------- ---------
Total interest-earning assets $ (30) $ (198) $ (228)
========= ========= =========
Interest-bearing liabilities:
Savings deposits $ (18) $ 8 $ (10)
Certificate accounts 11 (94) (83)
--------- --------- ---------
Total interest-bearing liabilities $ (7) $ (86) $ (93)
========= ========= ---------
Net interest income $ (135)
=========
Source: PS Financial's Prospectus
77
EXHIBIT 10
Yield and Cost Trends
For the Five Months Ended May 31, 1995, and 1996,
For the Fiscal Years Ended December 31, 1994, and 1995, and
For the Ten Months Ended December 31, 1993
Five Months Ended Ended
--------------------- Year ended December 31, Ten Months
May 31, May 31, ----------------------- December 31,
1996(3) 1995(3) 1995 1994 1993(3)
------ ------ ------ ------ ------
Interest-earning assets:
Loans receivable(1) 9.36% 9.32% 9.25% 9.56% 10.21%
Mortgage-backed securities 6.01% 5.20% 5.24% 4.78% 1.30%
Investment securities(2) 6.73% 6.95% 7.05% 4.46% 4.74%
Other 6.00% 6.13% 6.22% 4.28% 3.91%
------ ------ ------ ------ ------
Total interest-earning assets(1)(2) 8.38% 8.33% 8.31% 7.62% 8.21%
Interest-bearing liabilities:
Savings deposits 3.00% 3.02% 3.02% 2.85% 2.82%
Certificate accounts 5.43% 4.74% 5.22% 3.80% 4.37%
------ ------ ------ ------ ------
Total interest-bearing liabilities 4.18% 3.79% 4.05% 3.24% 3.43%
Net interest rate spread 4.20% 4.54% 4.26% 4.38% 4.78%
Net yield on average interest-earning assets 5.09% 5.33% 5.13% 5.03% 5.39%
Ratio of interest-earning assets to
interest-bearing liabilities 127.58% 127.06% 127.21% 125.08% 121.78%
(1) Calculated net of deferred loan fees, loan discounts, loans in process
and loss reserves.
(2) Calculated based on amortized cost.
(3) Annualized yield/rate.
S
78ource: PS Financial's Prospectus
EXHIBIT 11
Interest Rate Sensitivity Gap
At may 31, 1996
Maturing or Repricing
---------------------------------------------------------------------------------
Over 6
6 Months Months to Over 1 to Over 3 to Over No Stated
or less 1 Year 3 Years 5 Years 5 Years Maturity Total
---------- --------- --------- ---------- ------- ---------- ---------
(Dollars in Thousands)
Interest-Earning Assets
Loans receivable, net:
Fixed-rate mortgages $ 1,200 $ 1,235 $ 5,163 $ 5,216 $ 23,348 --- $ 36,162
Adjustable-rate construction 243 --- --- --- --- --- 243
Consumer 14 1 2 --- --- --- 17
Securities available for sale:
Treasury and agency securities 2,012 3,758 996 3,404 888 --- 11,058
Mortgage-backed securities 1,060 825 534 602 863 3,884
Interest bearing term deposits in other
financial institutions --- 99 50 --- 99 --- 248
Cash Equivalents 3,154 --- --- --- --- --- 2,871
FHLB Stock --- --- --- --- --- 362 362
---------- ---------- ---------- ---------- --------- ---------- ----------
Total interest-bearing assets 7,683 5,918 6,745 9,222 25,198 362 54,845
Interest-Bearing Liabilities
Passbooks 19,604 --- --- --- --- --- 19,604
Money Market accounts 1,998 --- --- --- --- --- 1,998
Certificates of Deposit 13,559 4,000 2,336 448 --- --- 20,343
---------- ---------- ---------- ---------- --------- ---------- ----------
Total interest-bearing liabilities 35,161 4,000 2,336 448 --- --- 41,945
Interest-earning assets less interest-bearing
liabilities $ (27,761) $ 1,918 $ 4,409 $ 8,774 $ 25,198 $ 362 $ 12,900
========== ========== ========== ========== ========= ========== ==========
Cumulative interest rate gap $ (27,761) $ (25,483) $ (21,074) $ (12,300) $ 12,898 $ 13,260 $ 12,900
========== ========== ========== ========== ========= ========== ==========
Cumulative interest rate gap as a percentage
of total assets at May 31, 1996 50.56% (47.07)% (39.04)% (23.06)% 22.84% 23.50% 23.50%
========== ========== ========== ========== ========= ========== ==========
Source: PS Financial's Prospectus
79
EXHIBIT 12
Interest Rate Sensitivity of Net Portfolio Value (NPV)
At May 31, 1996
Net Interest Income Net Portfolio Value (NPV)
Projected ---------------------------------------- -------------------------------------------
Interest Rate Estimated $ Change % Change Estimated $ Change % Change
Scenario Value from Base from Base Value from Base from Base
- --------------- ----------- ------------ ----------- ------------ ------------- ------------
(Dollars in thousands)
+400 bp $ 2,363 $ (201) (7.82)% $ 9,172 $ (4,329) (32.06)%
+300 bp 2,424 (140) (5.47)% 10,327 (3,174) (23.51)%
+200 bp 2,483 (81) (3.15)% 11,551 (1,950) (14.44)%
+100 bp 2,538 (26) (1.03)% 12,746 (755) (5.59)%
BASE 2,564 0 0.00% 13,501 0 0.00%
-100 bp 2,521 (43) (1.68)% 13,610 109 0.81%
-200 bp 2,443 (121) (4.72)% 13,671 170 1.26%
-300 bp 2,345 (219) (8.56)% 13,747 246 1.82%
-400 bp 2,291 (273) (10.65)% 14,214 713 5.28%
Source: PS Financial's Prospectus
80
EXHIBIT 13
Loan Portfolio Composition
At May 31, 1996, at December 31, 1993 through 1995,
at February 28, 1993, and at February 29, 1992
At May 31, At December 31,
-------------------- ----------------------------------------------------------------
1996 1995 1994 1993
-------------------- -------------------- -------------------- --------------------
Amount Percent Amount Percent Amount Percent Amount Percent
---------- --------- ---------- --------- ---------- --------- ---------- ---------
(Dollars in thousands)
Real Estate Loans:
One- to four-family $ 26,150 71.80% $ 25,858 73.44% $ 24,711 73.62% $ 23,403 74.45%
Multifamily 6,604 18.13% 6,094 17.31% 5,929 17.66% 5,452 17.34%
Commercial 3,408 9.36% 2,953 8.39% 2,904 8.65% 2,331 7.42%
Construction or
development 243 0.67% 286 0.81% 0 0.00% 215 0.68%
-------- ----- -------- ----- -------- ----- -------- -----
Total real estate
loans 36,405 99.96% 35,191 99.95% 33,544 99.93% 31,401 99.89%
-------- ----- -------- ----- -------- ----- -------- -----
Other loans:
Consumer Loans:
Deposit account 17 0.04% 18 0.05% 24 0.07% 35 0.11%
-------- ----- -------- ----- -------- ----- -------- -----
Total loans 36,422 100.00% 35,209 100.00% 33,568 100.00% 31,436 100.00%
-------- ----- -------- ----- -------- ----- -------- -----
Less:
Loans in process 0 0 0 0
Deferred fees and
discounts 534 548 542 521
Allowance for losses 186 136 136 94
-------- -------- -------- --------
Total loans
receivable, net $ 35,702 $ 34,525 $ 32,890 $ 30,821
======== ======== ======== ========
[RESTUBBED FROM TABLE ABOVE]
February, 28 February, 29
-------------------- -------------------
1993 1992
-------------------- -------------------
Amount Percent Amount Percent
---------- --------- --------- ---------
(Dollars in thousands)
Real Estate Loans:
One- to four-family $ 25,411 76.32% $ 24,670 76.51%
Multifamily 6,157 18.49% 6,046 18.75%
Commercial 1,681 5.05% 1,424 4.42%
Construction or
development 0 0.00% 0 0.00%
-------- ----- -------- -----
Total real estate
loans 33,249 99.86% 32,140 99.68%
-------- ----- -------- -----
Other loans:
Consumer Loans:
Deposit account 45 0.14% 105 0.32%
-------- ----- -------- -----
Total loans 33,294 100.00% 32,245 100.00%
-------- ----- -------- -----
Less:
Loans in process 0 0
Deferred fees and
discounts 511 496
Allowance for losses 67 43
-------- -------- -----
Total loans
receivable, net $ 32,716 $ 31,706
======== ========
Source: PS Financial's Prospectus
81
EXHIBIT 14
Loan Maturity Schedule
At May 31, 1996
At May 31, 1996
------------------------------------------------------------------------------------
One- to
Four- Commercial
Family Multi-family Construction Consumer Business Total
----------- ------------- ------------- ------------- ------------ -----------
(In thousands)
Amounts due:
1997 $ 31 $ 14 $ 243 $ 14 $ 0 $ 302
1998 323 0 0 0 0 323
1999 and 2000 281 269 0 3 164 717
2001 to 2005 3,676 2,981 0 0 1,857 8,514
2006 to 2020 21,839 3,340 0 0 1,387 26,566
2021 and following 0 0 0 0 0 0
---------- ---------- ---------- ---------- ---------- ----------
Total $ 26,150 $ 6,604 $ 243 $ 17 $ 3,408 $ 36,422
========== ========== ========== ========== ========== ==========
Fixed rate loans $ 36,177
Adjustable rate loans 245
----------
Total $ 36,422
==========
Source: PS Financial's Prospectus
82
EXHIBIT 15
Loan Originations
For the Five Months Ended May 31, 1995, and 1996, and
For the Years Ended December 31, 1994 and 1995 and
for The Ten Months Ended December 31, 1993
Ten Months
Five months ended Ended
-------------------------- Years ended December 31, December 31,
May 31, May 31, ------------------------- ------------
1996 1995 1995 1994 1993
------------ ------------ ----------- ----------- ------------
(In thousands)
Originations by type:
Real estate:
One- to four-family $2,499 $2,255 $5,162 $6,951 $6,050
Multi-family 1,250 421 821 1,180 0
Commercial 1,031 445 1,270 1,315 1,080
Non-real estate:
Consumer 9 2 9 12 40
------ ------ ------ ------ -------
Total loans originated 4,789 3,123 7,262 9,458 7,170
Purchases:
Real estate:
Construction 0 0 551 0 0
------ ------ ------ ------ -------
Total loans purchased 0 0 551 0 0
Sales and Repayments:
Principal repayments 3,151 1,820 5,533 7,596 9,935
Increase (decrease) in other
items, net (461) 56 (645) 207 870
------ ------ ------ ------ -------
Net increase (decrease) $1,177 $1,359 $1,635 $2,069 $(1,895)
====== ====== ====== ====== =======
Source: PS Financial's Prospectus
83
EXHIBIT 16
Delinquent Loans
At May 31, 1996
Loans Delinquent For:
-----------------------------------------------------------------------------------
30-59 Days 60-89 Days
---------------------------------------- ---------------------------------------
Percent Percent
of Loan of Loan
Number Amount Category Number Amount Category
------------ ------------ ------------ ----------- ----------- -----------
(000) (000)
Real Estate:
One-to four-family 9 $ 707 2.70% 3 $ 217 0.83%
Multi-family --- --- --- 1 299 4.53%
Commercial real estate 1 211 6.19% --- --- ---
Consumer --- --- --- --- --- ---
------------ ------------ ------------ ----------- ----------- -----------
Total 10 $ 918 2.27% 4 $ 518 1.42%
Loans Delinquent For:
----------------------------------------
90 Days and Over Total Delinquent Loans
---------------------------------------- ---------------------------------------
Percent Percent
of Loan of Loan
Number Amount Category Number Amount Category
------------ ------------ ------------ ----------- ----------- -----------
(000) (000)
Real Estate:
One-to four-family 7 $ 600 2.29% 19 $ 1,524 5.83%
Multi-family --- --- --- 1 299 4.53%
Commercial real estate --- --- --- 1 211 6.19%
Consumer --- --- --- --- --- ---
------------ ------------ ------------ ----------- ----------- -----------
Total 7 $ 600 1.65% 21 $ 2,034 7.78%
Source: PS Financial's Prospectus
84
EXHIBIT 17
Nonperforming Assets
At May 31, 1996, at December 31, 1993 through 1995,
At February 29, 1992, and at February 28, 1993
May 31, At December 31, February 28, February 29,
-----------------------------------
1996 1995 1994 1993 1993 1992
---------- ---------- ----------- ---------- ---------- ----------
(Dollars in thousands)
Non-accruing loans over ninety
days delinquent:
One-to four-family $ 584 $ 775 $ 334 $ 170 $ 106 $ 207
Multi-family --- --- --- --- --- ---
Commercial real estate --- --- --- --- --- ---
Commercial business --- --- --- --- --- ---
---------- ---------- ----------- ---------- ---------- ----------
Total 584 775 334 170 106 207
---------- ---------- ----------- ---------- ---------- ----------
Accruing loans delinquent
more than 90 days 16 --- --- 6 --- ---
Foreclosed assets --- --- --- --- --- ---
Total non-performing assets $ 600 $ 775 $ 334 $ 176 $ 106 $ 207
========== ========== =========== ========== ========== ==========
Total as a percentage of total assets 1.09% 1.45% 0.65% 0.33% 0.21% 0.45%
========== ========== =========== ========== ========== ==========
Source: PS Financial's Prospectus
85
EXHIBIT 18
Classified Assets
At May 31, 1996
(Dollars in thousands)
Classified Assets:
Substandard $ 600
Doubtful 0
Loss 0
--------------
Total classified assets $ 600
==============
Source: PS Financial's Prospectus
86
EXHIBIT 19
Allowance for Loan Losses
For the Five Months Ended May 31, 1995 and
1996, for the Fiscal Years Ended December
31, 1994 and 1995, for the Ten Months Ended
December 31, 1993, and
For the Fiscal Years Ended February 28, 1993, and February 29, 1992
Five months ended Year Ended
May 31, December 31,
-------------------------- --------------------------
1996 1995 1995 1994
------------ ------------ ------------ ------------
(Dollars in thousands)
Balance at beginning of period $ 136 $ 136 $ 136 $ 94
Charge-offs --- --- --- ---
Recoveries --- --- --- ---
Net Charge-offs --- --- --- ---
Additions charged to operation 50 --- --- 42
------------ ------------ ------------ ------------
Balance at end of period $ 186 $ 136 $ 136 $ 136
============ ============ ============ ============
Ratio of net charge-offs during the
period to average loans outstanding
during the period --- % --- % --- % --- %
============ ============ ============ ============
Ratio of net charge-offs during the
period to average non-performing
assets --- % --- % --- % --- %
============ ============ ============ ============
Ratio of allowance for loan losses to
total loans 0.51% 0.38% 0.39% 0.41%
============ ============ ============ ============
[TABLE RESTUBBED FROM ABOVE TABLE]
Ten months ended Year Ended
December 31, February 28, February 29,
---------------- --------------------------
1993 1993 1992
------------ ------------ ------------
(Dollars in thousands)
Balance at beginning of period $ 67 $ 43 $ 19
Charge-offs --- --- ---
Recoveries --- --- ---
Net Charge-offs --- --- ---
Additions charged to operation 27 24 24
------------ ------------ ------------
Balance at end of period $ 94 $ 67 $ 43
============ ============ ============
Ratio of net charge-offs during the
period to average loans outstanding
during the period --- % --- % --- %
============ ============ ============
Ratio of net charge-offs during the
period to average non-performing
assets --- % --- % --- %
============ ============ ============
Ratio of allowance for loan losses to
total loans 0.30% 0.20% 0.13%
============ ============ ============
Source: PS Financial's Prospectus
87
EXHIBIT 20
Investment Portfolio Composition
At May 31, 1996, and
At December 31, 1993 through 1995
At December 31,
-----------------------
At May 31, 1996 1995
----------------------- -----------------------
Book % of Book % of
Value Total Value Total
----------- ---------- ---------- -----------
(Dollars in thousands)
Securities held to maturity:
U.S. government securities -- ---% -- ---%
Securities available for sale:
U.S. government securities 2,511 22.71% 3,527 36.22%
Federal agency obligations 8,547 77.29% 6,212 63.78%
Marketable equity securities -- ---% -- ---%
------- ------ ------- ------
Total securities 11,058 100.00% 9,739 100.00%
======= ====== ======= ======
Other interest-earning assets:
Interest-bearing deposits with other banks $ 2,758 88.40% $ 3,086 90.05%
Repurchase agreements -- ---% -- ---%
Money market mutual funds -- ---% -- ---%
Federal funds sold -- ---% -- ---%
Federal Home Loan Bank Stock 362 11.60% 341 9.95%
------- ------ ------- ------
Total $ 3,120 100.00% $ 3,427 100.00%
======= ====== ======= ======
Mortgage-backed securities held to maturity:
FNMA -- ---% -- ---%
Mortgage-backed securities available for sale:
GNMA 706 18.18% 766 18.15%
FNMA 2,223 57.23% 2,426 57.49%
FHLMC 955 24.59% 1,028 24.36%
------- ------ ------- ------
Total mortgage-backed securities $ 3,884 100.00% $ 4,220 100.00%
======= ====== ======= ======
[RESTUBBED FROM TABLE ABOVE]
At December 31,
--------------------------------------------------
1994 1993
----------------------- -----------------------
Book % of Book % of
Value Total Value Total
----------- ---------- ---------- -----------
(Dollars in thousands)
Securities held to maturity:
U.S. government securities $ 201 2.67% $ 403 4.27%
Securities available for sale:
U.S. government securities 4,880 64.84% 2,999 31.74%
Federal agency obligations 2,445 32.49% -- ---%
Marketable equity securities -- ---% 6,045 63.99%
------- ------ ------- ------
Total securities 7,526 100.00% 9,447 100.00%
======= ====== ======= ======
Other interest-earning assets:
Interest-bearing deposits with other banks $ 6,060 95.15% $ 7,151 72.13%
Repurchase agreements -- ---% 750 7.57%
Money market mutual funds -- ---% 165 1.66%
Federal funds sold -- ---% 1,500 15.13%
Federal Home Loan Bank Stock 309 4.85% 348 3.51%
------- ------ ------- ------
Total $ 6,369 100.00% $ 9,914 100.00%
======= ====== ======= ======
Mortgage-backed securities held to maturity:
FNMA $ 1,792 51.41% $ 2,026 100.00%
Mortgage-backed securities available for sale:
GNMA 773 22.17% -- ---%
FNMA -- ---% -- ---%
FHLMC 921 26.42% -- ---%
------- ------ ------- ------
Total mortgage-backed securities $ 3,486 100.00% $ 2,026 100.00%
======= ====== ======= ======
Source: PS Financial's Prospectus
88
EXHIBIT 21
Mix of Deposits
At May 31, 1996, and at December 31, 1993 through 1995
At May 31, At December 31,
----------------------- --------------------------------------------------------------------------
1996 1995 1994 1993
----------------------- --------------------- --------------------- ----------------------
Percent Percent Percent Percent
Amount of total Amount of total Amount of Total Amount of Total
----------- ---------- --------- --------- -------- ----------- --------- ----------
(Dollars in Thousands)
Transactions and Savings
Deposits
Passbook accounts $19,604 46.74% $19,409 47.29% $20,750 51.80% $22,989 55.88%
Money Market Accounts 1,998 4.76% 1,601 3.90% 1,924 4.80% 2,029 4.93%
--------- --------- --------- --------- --------- --------- --------- ---------
Total Non-Certificates 21,602 51.50% 21,010 51.19% 22,674 56.60% 25,018 60.81%
Certificates:
0.00-3.99% 4 0.01% 49 0.12% 5,130 12.81% 12,935 31.44%
4.00-5.99% 18,570 44.27% 16,222 39.52% 11,669 29.13% 2,343 5.70%
6.00-7.99% 1,769 4.22% 3,766 9.17% 494 1.23% 668 1.62%
8.00% and over --- ---% --- ---% 90 0.23% 175 0.43%
--------- --------- --------- --------- --------- --------- --------- ---------
Total Certificates 20,343 48.50% 20,037 48.81% 17,383 43.40% 16,121 39.19%
--------- --------- --------- --------- --------- --------- --------- ---------
Total Deposits $41,945 100.00% $41,047 100.00% $40,057 100.00% $41,139 100.00%
========= ========= ========= ========= ========= ========= ========= =========
Source: PS Financial's Prospectus
89
EXHIBIT 22
Deposit Activity
For the Five Months Ended May 31, 1995, and 1996,
For the Years Ended December 31, 1994 and 1995,
and For the Ten Months Ended December 31, 1993
Ten Months
Five Months Ended Year Ended Ended
May 31, December 31, December 31,
----------------------- ------------------------- ------------
1996 1995 1995 1994 1993
-------- -------- --------- -------- ---------
(Dollars in thousands)
Opening balance $ 41,047 $ 40,057 $ 40,057 $ 41,139 $ 40,363
Deposits 11,721 9,566 24,295 24,604 15,841
Withdrawals (11,322) (10,238) (24,759) (26,856) (16,193)
Interest credited 499 403 1,454 1,170 1,128
-------- -------- -------- -------- --------
Ending balance $ 41,945 $ 39,788 $ 41,047 $ 40,057 $ 41,139
======== ======== ======== ======== ========
Net increase (decrease) $ 898 $ (269) $ 990 $ (1,082) $ 776
======== ======== ======== ======== ========
Percent increase (decrease) 2.19% (0.67)% 2.47% (2.63)% 1.92%
-------- -------- -------- -------- --------
Source: PS Financial's Prospectus
90
EXHIBIT 23
LIST OF KEY OFFICERS AND DIRECTORS
At May 31, 1996
Year of
Term Commencement
Name Expires Age(1) Position(s) Held with the Bank of Directorship
- --------------------------- ------------ ----------- ------------------------------------- --------------------
S.J. Ptak 1999 71 Chairman of the Board 1969
Kimberly P. Rooney 1999 39 President, Chief Executive 1989
Officer and Director
Edward Wolak 1998 72 Director 1969
Jeanine M. McInerney 1997 38 Director 1996
Rocco Di Iorio 1997 64 Director 1990
(1) At May 31, 1996.
Source: PS Financial's Prospectus
91
EXHIBIT 24
Key Demographic Data and Trends
Cook County, Illinois and the United States
1990,1995,2000
Population 1990 1995 % Chg. 2000 % Chg.
- ---------- ---- ---- ------ ---- ------
Cook County 5,105,067 5,144,275 0.8% 5,181,677 0.7%
Illinois 11,430,602 11,820,796 3.4% 12,201,180 3.2%
United States 248,709,873 263,006,245 5.7% 277,083,635 5.4%
Households
- ----------
Cook County 1,879,488 1,895,588 0.9% 1,910,191 0.8%
Illinois 4,202,240 4,344,448 3.4% 4,481,231 3.1%
United States 91,947,410 97,069,804 5.6% 102,201,641 5.3%
Per Capita Income
- -----------------
Cook County $12,882 $17,825 38.4% -- --
Illinois 13,705 17,047 24.4% -- --
United States 12,313 16,405 33.2% -- --
Median Household Income
- -----------------------
Cook County $30,060 $36,543 21.6% $35,814 (2.0)%
Illinois 31,424 35,865 14.1% 35,492 (1.0)%
United States 28,255 33,610 19.0% 32,972 (1.9)%
Source: Data Users Center and CACI.
92
EXHIBIT 25
Key Housing Data
Cook County, Illinois and the United States
1990
Occupied Housing Units 1990
- ---------------------- ----
Cook County 1,825,715
Illinois 4,202,240
United States 91,947,410
Occupancy
- ---------
Cook County
Owner-Occupied 55.5%
Renter-Occupied 44.5%
Illinois
Owner-Occupied 64.2%
Renter-Occupied 35.8%
United States
Owner-Occupied 64.2%
Renter-Occupied 35.8%
Median Housing Values
- ---------------------
Cook County $102,118
Illinois 80,873
United States 79,098
Median Rent
- -----------
Cook County $411
Illinois 369
United States 374
Source: U.S. Department of Commerce and CACI Sourcebook.
93
EXHIBIT 26
Major Sources of Employment by Industry Group
Cook County, Illinois and the United States
1993
Industry Group Cook County Illinois United States
- -------------- ----------- -------- -------------
Agriculture/Mining 0.4% 0.8% 1.3%
Construction 3.3% 4.0% 4.8%
Manufacturing 19.0% 20.8% 19.2%
Transportation/Utilities 6.9% 6.2% 5.9%
Wholesale/Retail 24.8% 26.9% 27.5%
Finance, Insurance, &
Real Estate 10.4% 8.5% 7.3%
Services 35.2% 32.8% 34.1%
Source: Bureau of the Census County Business Patterns
94
EXHIBIT 27
Unemployment Rates
Cook County, Illinois and the United States
1991, 1994 and 1996
Location 1994 1995 1996*
- -------- ---- ---- -----
Cook County 6.1% 5.5% 5.4%
Illinois 5.7% 5.2% 5.2%
United States 6.1% 5.2% 5.8%
* March, 1996
Source: Illinois Department of Employment Security
95
EXHIBIT 28
Market Share of Deposits
Cook County
June, 30 1995
Cook Preferred Preferred
County Savings Bank Savings Bank
Deposits Share Share
(000) (000) (%)
------------- ------------ ------------
Banks $ 75,485,527 --- ---
Thrifts 29,772,152 $ 41,353 0.14%
Credit Unions 3,886,310 --- ---
------------- ------------ ------------
Total Deposits $ 109,143,989 $ 41,353 0.04%
Source: Sheshunoff
96
EXHIBIT 29
National Interest Rates by Quarter
1992-1996
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
1992 1992 1992 1992
---- ---- ---- ----
Prime Rate 6.50% 6.50% 6.00% 6.00%
90-Day Treasury Bills 4.14% 3.63% 2.73% 3.13%
1-Year Treasury Bills 4.49% 4.03% 3.04% 3.57%
30-Year Treasury Bills 7.98% 7.78% 7.67% 7.39%
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
1993 1993 1993 1993
---- ---- ---- ----
Prime Rate 6.00% 6.00% 6.00% 6.00%
90-Day Treasury Bills 2.93% 3.07% 2.96% 3.05%
1-Year Treasury Bills 3.27% 3.43% 3.35% 3.58%
30-Year Treasury Bills 6.92% 6.67% 6.03% 6.35%
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
1994 1994 1994 1994
---- ---- ---- ----
Prime Rate 6.25% 7.25% 7.75% 8.50%
90-Day Treasury Bills 3.54% 4.23% 5.14% 5.66%
1-Year Treasury Bills 4.40% 5.49% 6.13% 7.15%
30-Year Treasury Bills 7.11% 7.43% 7.82% 7.88%
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr.
1995 1995 1995 1995
---- ---- ---- ----
Prime Rate 9.00% 9.00% 8.75% 8.50%
90-Day Treasury Bills 5.66% 5.58% 5.40% 5.06%
1-Year Treasury Bills 6.51% 5.62% 5.45% 5.14%
30-Year Treasury Bills 7.43% 6.71% 5.69% 5.97%
1st Qtr. 2nd Qtr.
1996 1996
---- ----
Prime Rate 8.25% 8.25%
90-Day Treasury Bills 5.18% 5.25%
1-Year Treasury Bills 5.43% 5.91%
30-Year Treasury Bills 6.73% 7.14%
Source: The Wall Street Journal
97
KELLER & COMPANY Page 1
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
PLE Pinnacle Bank AL AMSE 17.000 19.250 4.000 0.74 7.94 17.11 208.80 0.72 10.00 99.36 8.14 11.18
SRN Southern Banc Company, Inc AL AMSE 12.625 13.375 11.375 0.00 0.00 15.32 75.45 NA NA 82.41 16.73 NA
SZB SouthFirst Bancshares, Inc. AL AMSE 12.750 16.000 10.625 2.00 9.68 15.48 103.99 2.45 22.37 82.36 12.26 32.69
VAFD Valley Federal Savings Bank AL NASDAQ 31.000 35.250 8.500 0.00 10.71 26.16 323.35 0.60 119.23 118.50 9.59 155.00
FFBH First Federal Bancshares of AR AR NASDAQ 13.250 14.000 12.750 -4.50 -0.93 NA NA NA NA NA NA NA
FTF Texarkana First Financial Corp AR AMSE 15.625 16.500 10.000 -2.34 1.63 16.98 82.36 NA NA 92.02 18.97 NA
AHM Ahmanson & Company (H.F.) CA NYSE 26.000 28.625 2.688 0.48 11.83 19.78 461.87 0.88 7.69 131.45 5.63 33.33
AFFFZ America First Financial Fund CA NASDAQ 30.250 30.750 14.500 12.04 16.35 25.86 378.34 1.60 9.63 116.98 8.00 9.70
BPLS Bank Plus Corp. CA NASDAQ 10.375 14.000 5.000 16.90 15.28 9.55 180.71 0.00 NM 108.64 5.74 NM
BVFS Bay View Capital Corp. CA NASDAQ 35.375 36.250 11.250 8.02 9.49 29.94 492.19 0.60 121.98 118.15 7.19 22.82
BYFC Broadway Financial Corp. CA NASDAQ 10.000 11.000 10.000 0.00 -3.61 14.73 129.07 NA NA 67.89 7.75 NA
CAL Cal Fed Bancorp, Inc. CA NYSE 22.625 200.000 6.250 26.57 38.17 13.83 284.34 0.00 10.98 163.59 7.96 12.57
CFHC California Financial Holding CA NASDAQ 22.000 22.750 5.909 0.00 2.92 18.54 283.06 0.44 14.38 118.66 7.77 16.06
CENF CENFED Financial Corp. CA NASDAQ 23.250 23.750 5.000 5.68 8.14 21.27 426.22 0.33 10.33 109.31 5.45 14.26
CSA Coast Savings Financial CA NYSE 33.125 35.125 1.625 3.92 11.34 23.13 449.36 0.00 15.41 143.21 7.37 16.81
DSL Downey Financial Corp. CA NYSE 23.125 26.190 2.081 6.94 5.11 23.09 277.64 0.47 12.11 100.15 8.33 13.60
FSSB First FS&LA of San Bernardino CA NASDAQ 10.000 14.500 6.875 -6.98 0.00 17.75 314.62 0.00 NM 56.34 3.18 NM
FED FirstFed Financial Corp. CA NYSE 17.750 26.600 1.125 5.19 11.81 17.96 390.61 0.00 19.51 98.83 4.54 20.17
GLN Glendale Federal Bank, FSB CA NYSE 18.250 589.500 5.250 2.10 9.77 14.97 309.37 0.00 52.14 121.91 5.90 27.65
GDW Golden West Financial CA NYSE 57.375 57.500 3.875 5.28 10.34 40.78 617.63 0.37 11.90 140.69 9.29 12.13
GWF Great Western Financial CA NYSE 24.500 27.125 3.950 7.69 12.00 18.49 318.21 0.94 11.67 132.50 7.70 12.50
HTHR Hawthorne Financial Corp. CA NASDAQ 8.750 35.500 2.250 -2.78 25.00 13.29 292.87 0.00 NM 65.84 2.99 NM
HEMT HF Bancorp, Inc. CA NASDAQ 9.563 10.250 8.188 0.66 -1.92 12.91 131.64 0.00 28.98 74.07 7.26 28.98
HBNK Highland Federal Bank FSB CA NASDAQ 14.750 17.000 11.000 -4.84 -10.28 15.08 192.47 0.00 23.05 97.81 7.66 23.05
MBBC Monterey Bay Bancorp, Inc. CA NASDAQ 12.500 13.063 8.750 5.26 4.17 15.11 93.40 0.00 62.50 82.73 13.38 52.08
NHSL NHS Financial, Inc. CA NASDAQ 11.250 11.250 3.696 2.27 20.00 9.92 112.65 0.16 21.63 113.41 9.99 21.63
PSSB Palm Springs Savings Bank CA NASDAQ 13.938 14.125 4.500 0.45 7.22 10.34 169.85 0.12 13.27 134.80 8.21 24.89
PFFB PFF Bancorp, Inc. CA NASDAQ 11.250 11.750 10.375 2.27 2.27 14.64 108.19 NA NA 76.84 10.40 NA
PROV Provident Financial Holdings CA NASDAQ 10.813 11.000 10.125 2.40 NA NA NA NA NA NA NA NA
QCBC Quaker City Bancorp, Inc. CA NASDAQ 14.750 15.000 7.500 10.28 2.61 17.81 190.13 0.00 16.03 82.82 7.76 16.57
REDF RedFed Bancorp Inc. CA NASDAQ 9.250 14.500 7.750 8.82 -5.13 11.90 211.32 0.00 NM 77.73 4.38 NM
SGVB SGV Bancorp, Inc. CA NASDAQ 8.750 10.125 7.750 1.45 -1.41 11.94 122.11 NA NA 73.28 7.17 NA
WES Westcorp CA NYSE 18.500 21.905 3.703 3.50 -2.27 12.04 116.54 0.36 12.25 153.65 15.87 30.33
FFBA First Colorado Bancorp, Inc. CO NASDAQ 14.188 14.500 3.189 7.08 13.50 12.17 74.57 NA NA 116.58 19.03 NA
KELLER & COMPANY Page 2
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
MORG Morgan Financial Corp. CO NASDAQ 12.250 12.500 6.750 0.00 0.00 12.61 86.05 0.77 15.31 97.15 14.24 15.91
EGFC Eagle Financial Corp. CT NASDAQ 24.125 27.750 6.198 -1.53 3.76 22.69 318.06 0.88 6.87 106.32 7.59 13.79
FFES First Federal of East Hartford CT NASDAQ 17.625 21.500 4.000 -4.73 5.22 21.95 364.96 0.58 9.28 80.30 4.83 9.38
NTMG Nutmeg Federal S&LA CT NASDAQ 8.000 8.000 4.645 10.34 18.52 7.84 120.36 0.00 13.56 102.04 6.65 22.86
WBST Webster Financial Corporation CT NASDAQ 29.375 30.500 3.864 2.17 9.04 24.42 473.65 0.64 12.04 120.29 6.20 11.43
IFSB Independence Federal Savings DC NASDAQ 7.250 10.250 0.250 -6.45 -1.69 13.21 206.21 0.22 7.25 54.88 3.52 15.10
BANC BankAtlantic Bancorp, Inc. FL NASDAQ 11.750 12.800 0.223 7.80 -5.24 9.49 132.34 0.14 9.55 123.81 8.88 12.37
BKUNA BankUnited Financial Corp. FL NASDAQ 7.375 12.750 2.320 1.72 -3.28 7.93 129.72 0.00 6.10 93.00 5.69 NM
FFFG F.F.O. Financial Group, Inc. FL NASDAQ 2.625 10.000 0.563 -4.55 -4.55 2.18 36.26 0.00 17.50 120.41 7.24 16.41
FFLC FFLC Bancorp, Inc. FL NASDAQ 18.250 20.250 12.750 1.39 2.82 21.54 126.81 0.34 15.60 84.73 14.39 15.60
FFML First Family Financial Corp. FL NASDAQ 21.500 23.000 5.000 2.38 2.38 16.38 291.83 0.16 8.37 131.26 7.37 15.58
FFPB First Palm Beach Bancorp, Inc. FL NASDAQ 21.500 24.875 14.000 2.99 0.58 21.93 277.55 0.35 11.26 98.04 7.75 11.94
FFPC Florida First Bancorp, Inc. FL NASDAQ 11.125 11.250 0.750 0.00 17.11 6.31 89.43 0.24 13.73 176.31 12.44 14.83
HOFL Home Financial Corp. FL NASDAQ 13.875 16.250 5.803 5.59 2.78 12.86 49.19 0.75 21.35 107.89 28.21 17.13
SCSL Suncoast Savings and Loan FL NASDAQ 6.625 10.682 1.250 10.42 8.16 6.59 234.43 0.00 13.52 100.53 2.83 NM
CCFH CCF Holding Company GA NASDAQ 12.375 12.750 10.750 3.64 7.61 14.79 69.66 NA NA 83.67 17.76 NA
EBSI Eagle Bancshares GA NASDAQ 15.625 19.000 1.875 3.31 0.81 12.56 134.33 0.51 10.21 124.40 11.63 10.35
FGHC First Georgia Holding, Inc. GA NASDAQ 6.750 7.833 1.222 10.20 -6.90 5.86 70.23 0.07 12.05 115.19 9.61 12.98
FLFC First Liberty Financial Corp. GA NASDAQ 20.750 25.000 4.000 -2.35 -5.68 16.84 246.56 0.49 9.79 123.22 8.42 12.35
FLAG FLAG Financial Corp. GA NASDAQ 12.000 15.000 3.200 -5.88 -5.88 10.75 112.50 0.30 12.24 111.63 10.67 13.79
NFSL Newnan Savings Bank, FSB GA NASDAQ 21.000 21.000 2.955 9.09 10.53 12.86 111.04 0.31 10.00 163.30 18.91 11.41
CASH First Midwest Financial, Inc. IA NASDAQ 21.750 24.250 13.250 0.00 -10.31 21.94 192.34 0.41 12.43 99.13 11.31 12.57
GFSB GFS Bancorp, Inc. IA NASDAQ 20.500 20.750 11.000 0.94 -1.20 19.52 163.47 0.33 11.92 105.02 12.54 12.28
HZFS Horizon Financial Svcs Corp. IA NASDAQ 14.000 16.375 10.375 -6.67 -13.85 18.73 164.01 0.32 16.67 74.75 8.54 20.59
MFCX Marshalltown Financial Corp. IA NASDAQ 15.750 16.750 8.500 1.61 -4.55 13.86 88.78 0.00 49.22 113.64 17.74 52.50
MIFC Mid-Iowa Financial Corp. IA NASDAQ 6.375 7.875 2.474 0.00 -5.56 6.42 68.49 0.08 10.63 99.30 9.31 10.81
MWBI Midwest Bancshares, Inc. IA NASDAQ 25.000 27.125 11.750 -2.91 -5.66 26.46 396.78 0.52 6.98 94.48 6.30 10.04
FFFD North Central Bancshares, Inc. IA NASDAQ 11.625 12.683 8.071 6.90 10.71 13.90 48.44 NA NA 83.63 24.00 NA
PMFI Perpetual Midwest Financial IA NASDAQ 17.750 17.750 10.000 4.41 4.41 17.86 185.44 0.15 23.99 99.38 9.57 23.99
SFFC StateFed Financial Corporation IA NASDAQ 15.750 19.750 10.500 -2.33 -7.35 18.35 94.29 0.40 14.19 85.83 16.70 14.19
AVND Avondale Financial Corp. IL NASDAQ 14.000 15.250 11.500 8.74 7.69 16.33 164.65 0.00 15.05 85.73 8.50 20.90
CBCI Calumet Bancorp, Inc. IL NASDAQ 27.813 28.500 10.333 -0.67 0.92 33.23 206.72 0.00 11.89 83.70 13.45 11.89
CBSB Charter Financial, Inc. IL NASDAQ 11.500 12.250 6.361 4.55 1.10 12.95 60.48 NA NA 88.80 19.01 NA
CBK Citizens First Financial Corp. IL AMSE 10.250 10.500 9.500 2.50 2.50 NA NA NA NA NA NA NA
KELLER & COMPANY Page 3
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
CSBF CSB Financial Group, Inc. IL NASDAQ 9.125 9.625 8.810 -1.35 1.39 12.30 39.82 NA NA 74.19 22.92 NA
DFIN Damen Financial Corp. IL NASDAQ 11.500 11.940 11.000 -1.61 -1.08 14.34 59.31 NA NA 80.20 19.39 NA
EGLB Eagle BancGroup, Inc. IL NASDAQ 11.625 11.750 10.500 3.33 NA NA NA NA NA NA NA NA
FBCI Fidelity Bancorp, Inc. IL NASDAQ 16.250 17.000 9.500 0.00 0.78 16.99 155.90 0.22 16.58 95.64 10.42 16.58
FNSC Financial Security Corp. IL NASDAQ 25.750 26.500 11.875 1.98 -0.48 25.69 166.65 0.00 19.36 100.23 15.45 16.30
FFBI First Financial Bancorp, Inc. IL NASDAQ 15.500 16.250 9.000 0.00 0.00 16.67 187.79 0.00 13.72 92.98 8.25 16.67
FMBD First Mutual Bancorp, Inc. IL NASDAQ 12.625 14.750 11.125 7.45 4.34 16.83 73.11 NA NA 75.01 17.27 NA
FFDP FirstFed Bancshares IL NASDAQ 16.250 17.625 8.000 -4.41 8.33 16.12 186.84 0.30 17.47 100.81 8.70 33.16
GTPS Great American Bancorp IL NASDAQ 13.250 15.125 11.875 -4.50 -3.64 17.96 65.17 NA NA 73.78 20.33 NA
HNFC Hinsdale Financial Corp. IL NASDAQ 24.000 26.750 9.000 -1.03 11.63 20.62 246.26 0.00 15.48 116.39 9.75 17.27
HMCI HomeCorp, Inc. IL NASDAQ 18.000 18.750 5.000 0.00 0.70 18.72 300.36 0.00 15.65 96.15 5.99 24.66
KNK Kankakee Bancorp, Inc. IL AMSE 19.375 21.000 13.625 2.65 1.31 24.76 250.52 0.40 15.26 78.25 7.73 15.26
LBCI Liberty Bancorp, Inc. IL NASDAQ 23.875 30.625 12.750 -1.04 4.95 25.84 262.90 0.60 17.95 92.40 9.08 17.95
MAFB MAF Bancorp, Inc. IL NASDAQ 25.250 26.810 2.727 12.22 -2.66 23.42 301.45 0.32 9.15 107.81 8.38 9.08
NBSI North Bancshares, Inc. IL NASDAQ 15.750 16.250 11.000 3.28 -2.33 16.62 107.25 0.20 28.64 94.77 14.69 31.50
SWBI Southwest Bancshares IL NASDAQ 26.750 28.250 11.750 -1.38 0.00 22.30 198.77 1.06 13.65 119.96 13.46 13.72
SPBC St. Paul Bancorp, Inc. IL NASDAQ 23.625 26.625 3.833 3.28 -1.05 20.88 241.13 0.35 12.30 113.15 9.80 12.57
STND Standard Financial, Inc. IL NASDAQ 16.250 16.500 9.125 1.56 7.44 16.29 139.15 0.16 15.93 99.75 11.68 17.47
SFSB SuburbFed Financial Corp. IL NASDAQ 17.500 18.167 6.667 1.45 0.72 20.72 301.02 0.32 13.06 84.46 5.81 14.96
WCBI Westco Bancorp IL NASDAQ 21.500 22.000 7.667 1.18 11.21 18.40 119.07 0.45 15.58 116.85 18.06 15.36
FBCV 1ST Bancorp IN NASDAQ 29.000 34.286 4.190 7.41 1.75 32.60 395.29 0.39 3.36 88.96 7.34 NM
AMFC AMB Financial Corp. IN NASDAQ 10.250 11.000 9.750 -4.65 2.50 NA NA NA NA NA NA NA
ASBI Ameriana Bancorp IN NASDAQ 13.250 14.438 2.750 0.00 1.45 13.51 121.72 0.54 13.52 98.08 10.89 13.80
ATSB AmTrust Capital Corp. IN NASDAQ 9.250 11.250 7.750 8.82 -7.50 13.32 128.88 0.00 25.69 69.44 7.18 102.78
CBCO CB Bancorp, Inc. IN NASDAQ 17.250 19.250 7.125 0.73 4.55 16.44 166.49 0.00 8.21 104.93 10.36 8.21
CBIN Community Bank Shares IN NASDAQ 13.250 14.750 12.000 4.95 -5.36 12.85 112.88 NA NA 103.11 11.74 NA
FFWC FFW Corp. IN NASDAQ 19.500 20.000 12.500 1.30 1.30 21.76 201.43 0.48 11.47 89.61 9.68 10.32
FFED Fidelity Federal Bancorp IN NASDAQ 10.250 14.773 1.534 -8.89 -21.15 5.70 112.36 0.70 8.13 179.82 9.12 8.69
FISB First Indiana Corporation IN NASDAQ 23.125 25.190 1.797 -2.12 -5.61 16.40 177.60 0.51 11.34 141.01 13.02 13.60
HFGI Harrington Financial Group IN NASDAQ 10.000 11.000 9.875 -4.76 -6.98 7.10 128.41 0.00 17.54 140.85 7.79 16.39
HBFW Home Bancorp IN NASDAQ 15.750 16.250 12.500 4.13 5.88 16.96 109.43 0.05 17.90 92.87 14.39 17.90
HBBI Home Building Bancorp IN NASDAQ 17.750 21.250 10.000 -13.41 5.97 20.13 130.06 0.30 30.08 88.18 13.65 32.27
HOMF Home Federal Bancorp IN NASDAQ 26.250 27.750 3.222 -1.87 5.00 23.14 282.99 0.45 8.15 113.44 9.28 9.62
HWEN Home Financial Bancorp IN NASDAQ 12.000 12.000 9.875 21.52 NA NA NA NA NA NA NA NA
KELLER & COMPANY Page 4
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
INCB Indiana Community Bank, SB IN NASDAQ 13.250 16.750 11.000 0.00 -15.87 15.35 102.46 0.33 18.93 86.32 12.93 18.93
IFSL Indiana Federal Corporation IN NASDAQ 18.500 21.500 4.000 -8.64 1.37 14.88 151.50 0.78 12.09 124.33 12.21 12.94
LOGN Logansport Financial Corp. IN NASDAQ 13.125 13.750 11.250 -2.78 2.94 14.99 58.37 0.40 15.44 87.56 22.49 16.41
MARN Marion Capital Holdings IN NASDAQ 20.000 21.000 14.250 -1.23 0.00 21.47 91.94 0.74 16.39 93.15 21.75 16.39
MFBC MFB Corp. IN NASDAQ 15.250 16.250 10.500 10.91 7.02 19.09 106.67 0.00 21.48 79.88 14.30 22.10
NEIB Northeast Indiana Bancorp IN NASDAQ 12.250 13.500 11.250 1.03 2.08 14.13 74.76 0.23 15.31 86.69 16.39 15.31
PFDC Peoples Bancorp IN NASDAQ 19.250 22.500 5.375 -4.94 -4.94 18.46 118.51 0.54 11.26 104.28 16.24 11.26
PERM Permanent Bancorp, Inc. IN NASDAQ 16.500 18.500 9.750 4.76 3.13 19.44 185.48 0.20 30.00 84.88 8.90 30.00
SOBI Sobieski Bancorp, Inc. IN NASDAQ 11.750 13.250 10.000 0.00 -5.05 16.87 91.25 0.00 31.76 69.65 12.88 31.76
WCHI Workingmens Capital Holdings IN NASDAQ 20.750 20.875 4.313 0.61 4.40 14.63 115.12 0.35 20.34 141.83 18.02 20.15
FFSL First Independence Corp. KS NASDAQ 18.500 19.250 10.875 4.23 4.96 22.37 181.29 0.35 10.05 82.70 10.20 11.71
LARK Landmark Bancshares, Inc. KS NASDAQ 15.250 15.875 9.750 0.00 2.52 17.27 104.74 0.40 16.22 88.30 14.56 18.15
MCBS Mid Continent Bancshares Inc. KS NASDAQ 17.875 19.250 9.750 -3.38 -1.38 18.61 141.13 0.40 9.71 96.05 12.67 9.99
WBCI WFS Bancorp, Inc. KS NASDAQ 22.875 23.090 11.000 -0.80 0.55 21.99 171.20 0.40 18.45 104.02 13.36 17.07
CKFB CKF Bancorp, Inc. KY NASDAQ 19.500 20.250 11.375 0.00 0.00 17.21 59.11 0.40 25.66 113.31 32.99 25.66
CLAS Classic Bancshares, Inc. KY NASDAQ 11.625 11.750 10.375 8.14 3.33 14.74 49.97 NA NA 78.87 23.26 NA
FSBS First Ashland Financial Corp KY NASDAQ 18.250 18.375 12.500 0.00 1.39 16.15 59.37 NA NA 113.00 30.74 NA
FFKY First Federal Financial Corp. KY NASDAQ 21.500 22.000 3.063 3.61 20.28 11.87 83.80 0.46 16.54 181.13 25.66 18.22
FLKY First Lancaster Bancshares KY NASDAQ 13.750 14.250 13.125 3.07 NA NA NA NA NA NA NA NA
FTSB Fort Thomas Financial Corp. KY NASDAQ 13.750 17.750 11.250 -20.29 -16.03 13.58 55.89 NA NA 101.25 24.60 NA
FKKY Frankfort First Bancorp, Inc. KY NASDAQ 11.250 15.875 11.000 -7.22 -28.00 13.87 40.18 NA NA 81.11 28.00 NA
GWBC Gateway Bancorp, Inc. KY NASDAQ 13.000 16.250 11.000 -7.14 -9.57 15.64 62.93 1.50 19.70 83.12 20.66 19.70
GTFN Great Financial Corporation KY NASDAQ 26.750 27.375 13.875 4.39 2.39 19.19 169.06 0.42 17.26 139.40 15.82 21.06
HFFB Harrodsburg First Fin Bancorp KY NASDAQ 16.250 16.750 12.375 -0.76 19.27 15.49 49.82 NA NA 104.91 32.62 NA
KYF Kentucky First Bancorp, Inc. KY AMSE 14.625 15.250 11.375 -2.50 15.84 14.29 60.48 NA NA 102.34 24.18 NA
ANA Acadiana Bancshares, Inc. LA AMSE 12.250 12.250 11.690 NA NA NA NA NA NA NA NA NA
CZF CitiSave Financial Corp LA AMSE 13.875 16.500 12.750 -2.63 -5.93 16.26 82.63 NA NA 85.33 16.79 NA
ISBF ISB Financial Corporation LA NASDAQ 14.750 17.000 12.938 2.61 -5.21 16.37 84.51 NA NA 90.10 17.45 NA
JEBC Jefferson Bancorp, Inc. LA NASDAQ 22.500 22.500 12.750 2.27 2.86 16.42 120.96 0.30 18.75 137.03 18.60 18.75
MERI Meritrust Federal SB LA NASDAQ 31.500 34.000 13.500 0.80 -1.56 22.40 295.05 0.58 11.33 140.63 10.68 11.62
TSH Teche Holding Co. LA AMSE 13.000 14.500 11.375 0.97 -1.89 14.51 84.56 NA NA 89.59 15.37 NA
AFCB Affiliated Community Bancorp MA NASDAQ 17.375 18.000 16.060 0.72 6.11 19.30 193.66 NA NA 90.03 8.97 NA
BFD BostonFed Bancorp, Inc. MA AMSE 12.375 12.625 10.000 3.13 6.45 14.55 118.06 NA NA 85.05 10.48 NA
FMLY Family Bancorp MA NASDAQ 25.250 25.500 1.167 3.59 26.25 16.60 219.50 0.42 13.43 152.11 11.50 13.95
KELLER & COMPANY Page 5
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
ANBK American National Bancorp MD NASDAQ 9.875 10.625 4.639 -7.06 1.28 12.87 112.80 NA NA 76.73 8.75 NA
EQSB Equitable Federal Savings Bank MD NASDAQ 25.250 26.250 11.250 2.02 0.00 23.64 446.29 0.00 8.04 106.81 5.66 8.07
FCIT First Citizens Financial Corp. MD NASDAQ 17.500 19.091 0.375 4.48 -1.41 13.45 214.17 0.00 13.16 130.11 8.17 16.51
FFWM First Financial-W. Maryland MD NASDAQ 22.250 27.250 7.167 5.95 17.11 18.70 149.25 0.48 34.23 118.98 14.91 37.08
HRBF Harbor Federal Bancorp, Inc. MD NASDAQ 12.875 15.500 9.750 3.00 -0.96 15.84 114.58 0.30 23.41 81.28 11.24 23.41
HFMD Home Federal Corp. MD NASDAQ 10.250 15.873 0.750 -4.65 -6.31 7.41 86.02 0.12 10.15 138.33 11.92 10.35
MFSL Maryland Federal Bancorp MD NASDAQ 28.875 34.125 4.545 -0.43 -1.70 29.95 357.10 0.61 10.42 96.41 8.09 14.73
WSB Washington Savings Bank, FSB MD AMSE 5.000 6.917 0.281 -9.09 0.00 4.97 60.42 0.09 9.09 100.60 8.28 11.90
WHGB WHG Bancshares Corp. MD NASDAQ 11.250 11.750 10.875 -2.17 0.00 NA NA NA NA NA NA NA
MCBN Mid-Coast Bancorp, Inc. ME NASDAQ 20.250 20.250 8.095 5.88 4.52 21.67 239.77 0.50 14.57 93.45 8.45 15.82
BWFC Bank West Financial Corp. MI NASDAQ 12.000 12.250 8.500 7.87 31.51 11.99 60.63 0.21 26.67 100.08 19.79 46.15
CFSB CFSB Bancorp, Inc. MI NASDAQ 19.875 24.000 3.486 -4.22 -0.63 14.57 177.22 0.45 12.50 136.41 11.21 13.25
DNFC D & N Financial Corp. MI NASDAQ 12.750 18.875 2.500 -3.77 2.00 10.30 180.31 0.00 7.29 123.79 7.07 7.97
MSBF MSB Financial, Inc. MI NASDAQ 16.750 19.500 10.750 -2.90 -1.47 18.86 83.33 0.30 10.81 88.81 20.10 11.88
MSBK Mutual Savings Bank, FSB MI NASDAQ 5.375 25.500 3.000 -8.51 0.00 9.03 159.10 0.00 NM 59.52 3.38 NM
OFCP Ottawa Financial Corp. MI NASDAQ 16.375 16.750 10.250 0.77 0.77 14.84 144.45 0.32 18.82 110.34 11.34 19.26
SJSB SJS Bancorp MI NASDAQ 20.000 20.750 10.810 -1.53 0.00 17.90 153.42 0.30 21.74 111.73 13.04 22.22
SFB Standard Federal Bancorp MI NYSE 41.625 43.125 4.750 7.42 8.12 30.74 486.52 0.74 10.48 135.41 8.56 12.03
THR Three Rivers Financial Corp. MI AMSE 12.625 13.625 11.375 -5.61 -1.94 15.17 99.04 NA NA 83.22 12.75 NA
BDJI First Federal Bancorporation MN NASDAQ 14.375 14.750 10.625 8.49 10.58 17.88 134.85 0.00 16.34 80.40 10.66 16.34
FFHH FSF Financial Corp. MN NASDAQ 11.875 13.500 7.750 -1.04 -6.86 15.58 95.29 0.50 20.83 76.22 12.46 20.83
HMNF HMN Financial, Inc. MN NASDAQ 15.250 16.500 9.313 -5.43 -0.81 17.54 104.63 0.00 12.92 86.94 14.58 14.52
MIVI Mississippi View Holding Co. MN NASDAQ 10.875 12.250 8.500 1.16 -3.85 13.78 73.08 0.08 10.88 78.92 14.88 12.22
QCFB QCF Bancorp, Inc. MN NASDAQ 14.750 15.250 11.000 -3.28 5.36 17.82 81.68 NA NA 82.77 18.06 NA
TCB TCF Financial Corp. MN NYSE 38.250 38.500 2.813 13.33 12.50 14.98 194.88 0.66 13.42 255.34 19.63 14.06
WEFC Wells Financial Corp. MN NASDAQ 11.813 12.250 9.000 1.62 13.86 13.41 89.68 NA NA 88.09 13.17 NA
CMRN Cameron Financial Corp MO NASDAQ 14.000 15.500 10.688 3.70 1.82 17.29 60.52 NA NA 80.97 23.13 NA
CAPS Capital Savings Bancorp, Inc. MO NASDAQ 19.500 19.500 12.250 8.33 2.63 20.34 194.94 0.33 10.77 95.87 10.00 10.77
CNSB CNS Bancorp, Inc. MO NASDAQ 11.625 12.000 11.000 1.09 NA NA NA NA NA NA NA NA
FBSI First Bancshares, Inc. MO NASDAQ 16.000 17.000 10.250 3.23 -4.48 18.26 107.92 0.20 17.78 87.62 14.83 17.98
GSBC Great Southern Bancorp, Inc. MO NASDAQ 27.500 28.500 2.292 2.08 6.80 15.04 148.61 0.68 11.55 182.85 18.50 12.28
HFSA Hardin Bancorp, Inc. MO NASDAQ 11.250 13.000 11.000 -2.17 -2.17 14.75 85.90 NA NA 76.27 13.10 NA
JSBA Jefferson Savings Bancorp MO NASDAQ 23.500 30.750 13.250 -5.05 -18.97 21.59 266.48 0.08 13.28 108.85 8.82 14.51
JOAC Joachim Bancorp, Inc. MO NASDAQ 13.250 13.500 11.500 8.16 3.92 14.14 48.37 NA NA 93.71 27.39 NA
KELLER & COMPANY Page 6
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
LXMO Lexington B&L Financial Corp. MO NASDAQ 9.875 10.125 9.500 -2.47 NA NA NA NA NA NA NA NA
MBLF MBLA Financial Corp. MO NASDAQ 21.250 26.000 12.750 -5.56 -15.84 20.68 142.21 0.40 22.14 102.76 14.94 22.14
MFSB Mutual Bancompany MO NASDAQ 21.250 21.750 10.000 1.19 1.19 18.70 159.85 0.00 62.50 113.64 13.29 54.49
NASB North American Savings Bank MO NASDAQ 29.938 32.375 2.500 2.35 -2.64 21.44 291.83 0.53 8.09 139.64 10.26 8.83
NSLB NS&L Bancorp, Inc. MO NASDAQ 12.500 13.750 11.750 -0.99 -1.96 15.62 66.51 NA NA 80.03 18.79 NA
PCBC Perry County Financial Corp. MO NASDAQ 15.500 21.500 12.375 -12.68 -10.14 18.37 91.63 0.30 16.32 84.38 16.92 16.67
RFED Roosevelt Financial Group MO NASDAQ 16.500 19.750 2.167 -6.38 -10.20 10.98 221.32 0.59 13.10 150.27 7.46 9.54
SMFC Sho-Me Financial Corp. MO NASDAQ 17.000 17.000 9.375 6.25 5.52 19.59 161.62 0.00 13.49 86.78 10.52 13.93
SMBC Southern Missouri Bancorp, Inc MO NASDAQ 14.000 17.500 8.875 -1.75 -3.45 15.41 93.96 0.50 17.72 90.85 14.90 19.18
CFTP Community Federal Bancorp MS NASDAQ 13.000 13.750 12.250 -1.89 4.00 14.37 43.56 NA NA 90.47 29.84 NA
FFBS FFBS BanCorp, Inc. MS NASDAQ 19.750 24.250 12.000 -11.24 -8.14 16.43 78.55 1.40 18.46 120.21 25.14 18.46
MGNL Magna Bancorp, Inc. MS NASDAQ 41.000 42.000 1.688 17.14 17.14 18.36 191.00 0.50 13.67 223.31 21.47 13.76
GBCI Glacier Bancorp, Inc. MT NASDAQ 21.250 22.273 1.495 0.00 -3.41 11.45 121.53 0.59 11.68 185.59 17.49 11.68
SFBM Security Bancorp MT NASDAQ 20.250 23.250 4.250 0.00 -4.71 21.97 246.22 0.65 12.50 92.17 8.22 16.74
UBMT United Financial Corp. MT NASDAQ 18.000 22.500 5.625 -4.00 0.00 20.12 85.48 0.83 13.64 89.46 21.06 13.64
WSTR WesterFed Financial Corp. MT NASDAQ 14.188 17.125 11.375 -2.99 -1.30 17.88 128.31 0.36 13.26 79.35 11.06 14.48
COOP Cooperative Bankshares, Inc. NC NASDAQ 16.750 22.500 3.467 -1.47 -5.63 19.77 212.28 0.00 29.39 84.72 7.89 29.91
SOPN First Savings Bancorp, Inc. NC NASDAQ 17.750 21.000 13.500 -2.74 -6.58 17.94 68.45 0.68 18.68 98.94 25.93 18.30
GSFC Green Street Financial Corp. NC NASDAQ 12.750 13.125 12.125 -2.86 3.03 14.60 41.64 NA NA 87.33 30.62 NA
HFNC HFNC Financial Corp. NC NASDAQ 16.500 16.750 13.125 1.54 17.35 14.21 41.66 NA NA 116.12 39.61 NA
KSAV KS Bancorp, Inc. NC NASDAQ 20.000 22.000 11.625 0.00 11.11 20.86 141.02 1.10 14.39 95.88 14.18 14.18
MBSP Mitchell Bancorp, Inc. NC NASDAQ 10.875 11.000 10.190 NA NA NA NA NA NA NA NA NA
PDB Piedmont Bancorp, Inc. NC AMSE 13.250 13.625 12.000 0.95 0.95 14.01 48.66 NA NA 94.58 27.23 NA
SSB Scotland Bancorp, Inc NC AMSE 12.125 12.625 11.625 -1.02 3.19 13.43 38.31 NA NA 90.28 31.65 NA
SSM Stone Street Bancorp, Inc. NC AMSE 16.500 18.500 16.250 -2.22 -3.65 NA NA NA NA NA NA NA
UFRM United Federal Savings Bank NC NASDAQ 7.500 8.750 1.750 -9.75 -4.76 6.81 82.27 0.17 10.27 110.13 9.12 11.54
CFB Commercial Federal Corporation NE NYSE 38.500 39.125 1.625 5.48 4.05 27.39 437.89 0.40 10.32 140.56 8.79 10.43
EBCP Eastern Bancorp NH NASDAQ 18.000 18.333 3.000 7.46 17.39 17.77 230.19 0.43 11.39 101.29 7.82 15.79
NHTB New Hampshire Thrift Bncshrs NH NASDAQ 10.000 13.000 1.750 1.27 1.27 11.49 149.44 0.50 12.05 87.03 6.69 11.63
FBER 1st Bergen Bancorp NJ NASDAQ 9.875 10.000 9.000 6.76 5.33 13.67 79.45 NA NA 72.24 12.43 NA
CJFC Central Jersey Financial NJ NASDAQ 32.000 32.000 2.645 5.79 20.75 20.84 175.50 0.46 16.33 153.55 18.23 17.20
COFD Collective Bancorp, Inc. NJ NASDAQ 24.000 28.250 1.351 0.52 -0.52 17.88 252.55 0.85 8.99 134.23 9.50 9.09
FSPG First Home Bancorp, Inc. NJ NASDAQ 17.750 19.000 2.531 0.00 -2.74 14.97 229.73 0.48 8.18 118.57 7.73 8.57
FSFI First State Financial Services NJ NASDAQ 13.000 14.125 1.625 0.46 28.40 10.69 156.21 0.22 13.54 121.61 8.32 17.57
KELLER & COMPANY Page 7
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
FMCO FMS Financial Corporation NJ NASDAQ 16.500 17.500 1.500 1.54 -2.94 13.91 209.90 0.20 10.12 118.62 7.86 10.12
IBSF IBS Financial Corp. NJ NASDAQ 13.875 15.455 8.409 7.77 1.83 13.55 68.05 0.21 19.01 102.40 20.39 18.50
LVSB Lakeview Financial NJ NASDAQ 21.125 21.625 8.068 5.63 17.36 19.99 200.89 0.23 10.06 105.68 10.52 16.50
LFBI Little Falls Bancorp, Inc. NJ NASDAQ 10.250 11.500 9.500 -3.53 6.49 14.40 92.79 NA NA 71.18 11.05 NA
OCFC Ocean Financial Corp. NJ NASDAQ 21.188 21.250 19.625 3.99 NA NA NA NA NA NA NA NA
PBCI Pamrapo Bancorp, Inc. NJ NASDAQ 18.500 26.125 2.563 -3.90 1.37 17.23 111.42 0.90 12.67 107.37 16.60 12.67
PFSB PennFed Financial Services,Inc NJ NASDAQ 16.750 17.000 9.063 11.22 10.27 20.50 225.25 0.00 10.81 81.71 7.44 10.88
PULS Pulse Bancorp NJ NASDAQ 17.375 18.000 4.000 -2.11 17.80 12.90 165.62 0.78 12.59 134.69 10.49 12.59
SFIN Statewide Financial Corp. NJ NASDAQ 12.125 13.750 11.250 1.04 3.19 13.36 120.40 NA NA 90.76 10.07 NA
WYNE Wayne Bancorp, Inc. NJ NASDAQ 12.750 12.750 10.750 15.91 NA NA NA NA NA NA NA NA
WWFC Westwood Financial Corporation NJ NASDAQ 10.500 11.000 10.250 0.00 NA NA NA NA NA NA NA NA
FSBC First Savings Bank, FSB NM NASDAQ 5.250 10.417 1.750 -4.55 -19.23 7.86 166.01 0.00 NA 66.79 3.16 NA
GUPB GFSB Bancorp, Inc. NM NASDAQ 14.000 15.000 12.875 2.75 0.90 17.09 74.23 NA NA 81.92 18.86 NA
ALBK ALBANK Financial Corporation NY NASDAQ 26.000 30.625 9.167 1.46 -7.96 23.83 250.27 0.44 12.50 109.11 10.39 12.50
ALBC Albion Banc Corp. NY NASDAQ 17.500 18.750 10.500 2.94 4.48 23.29 217.45 0.31 26.12 75.14 8.05 30.70
ASFC Astoria Financial Corporation NY NASDAQ 26.875 28.125 12.688 -1.16 3.12 26.11 329.08 0.41 11.79 102.93 8.17 12.92
BFSI BFS Bankorp, Inc. NY NASDAQ 42.500 42.500 2.500 10.39 11.29 29.73 379.90 0.00 7.13 142.95 11.19 7.38
CARV Carver Federal Savings Bank NY NASDAQ 8.000 10.750 6.250 0.00 -1.96 15.03 156.57 0.00 22.86 53.23 5.11 25.00
FIBC Financial Bancorp, Inc. NY NASDAQ 14.750 14.875 8.500 19.19 12.94 14.60 146.15 0.25 17.15 101.03 10.09 17.56
HAVN Haven Bancorp, Inc. NY NASDAQ 27.125 28.875 10.000 -1.81 5.85 21.77 358.85 0.45 11.30 124.60 7.56 11.69
LISB Long Island Bancorp, Inc. NY NASDAQ 28.000 32.875 12.090 -7.05 2.28 21.03 210.48 0.40 14.97 133.14 13.30 16.47
NYB New York Bancorp Inc. NY NYSE 28.250 28.250 2.425 10.24 15.90 13.78 253.93 0.80 9.95 205.01 11.13 10.58
PEEK Peekskill Financial Corp. NY NASDAQ 12.250 12.250 11.125 4.26 6.52 14.58 46.67 NA NA 84.02 26.25 NA
PKPS Poughkeepsie Savings Bank, FSB NY NASDAQ 5.000 26.750 0.875 -3.66 0.00 5.65 66.97 0.09 4.67 88.50 7.47 3.45
RELY Reliance Bancorp, Inc. NY NASDAQ 17.000 17.000 8.875 7.09 13.33 16.83 195.27 0.46 12.98 101.01 8.71 13.71
SFED SFS Bancorp, Inc. NY NASDAQ 12.750 13.500 11.000 2.00 4.08 17.24 127.17 0.00 15.18 73.96 10.03 15.00
TPNZ Tappan Zee Financial, Inc. NY NASDAQ 13.188 13.500 11.250 13.45 7.66 13.84 76.73 NA NA 95.29 17.19 NA
YFCB Yonkers Financial Corporation NY NASDAQ 10.438 10.438 9.310 4.38 5.70 13.73 68.00 NA NA 76.02 15.35 NA
ASBP ASB Financial Corp. OH NASDAQ 14.750 16.500 11.375 3.51 -1.67 15.93 65.92 0.33 21.38 92.59 22.38 21.38
CAFI Camco Financial Corporation OH NASDAQ 19.000 19.286 12.245 0.00 2.31 13.83 166.04 0.39 9.41 137.38 11.44 12.26
COFI Charter One Financial OH NASDAQ 36.500 38.000 3.445 2.82 4.29 20.76 309.97 0.82 32.02 175.82 11.78 11.66
CRCL Circle Financial Corp. OH NASDAQ 37.000 37.000 10.500 5.71 5.34 34.51 323.98 0.62 25.69 107.22 11.42 30.08
CTZN CitFed Bancorp, Inc. OH NASDAQ 37.875 39.500 9.250 3.06 9.78 30.80 467.55 0.28 12.75 122.97 8.10 14.29
CIBI Community Investors Bancorp OH NASDAQ 15.375 17.500 10.750 2.50 4.24 16.93 122.33 0.12 12.20 90.82 12.57 12.92
KELLER & COMPANY Page 8
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
EFBI Enterprise Federal Bancorp OH NASDAQ 12.750 18.000 11.250 -8.93 -10.53 15.09 97.56 3.00 12.75 84.49 13.07 19.32
FFDF FFD Financial Corp. OH NASDAQ 10.500 10.750 10.000 -1.18 0.00 NA NA NA NA NA NA NA
FFYF FFY Financial Corp. OH NASDAQ 23.875 24.000 12.250 1.60 3.24 20.25 110.37 0.55 17.69 117.90 21.63 17.05
FFOH Fidelity Financial of Ohio OH NASDAQ 10.125 10.890 3.112 2.53 1.25 12.54 61.66 NA NA 80.74 16.42 NA
FDEF First Defiance Financial OH NASDAQ 10.375 11.000 5.790 -1.19 -1.19 12.14 49.91 NA NA 85.46 20.79 NA
FFBZ First Federal Bancorp, Inc. OH NASDAQ 23.500 24.500 6.250 -4.08 -3.59 16.84 226.57 0.40 10.13 139.55 10.37 10.31
FFHS First Franklin Corporation OH NASDAQ 14.500 17.500 3.500 -3.33 -1.69 17.41 185.79 0.29 13.55 83.29 7.80 13.81
FFSW FirstFederal Financial Svcs OH NASDAQ 30.375 31.000 2.232 6.58 23.98 15.09 291.48 0.45 15.50 201.29 10.42 18.75
GFCO Glenway Financial Corp. OH NASDAQ 20.000 23.333 15.419 2.44 -3.45 23.12 239.12 0.49 15.04 86.51 8.36 15.27
HHFC Harvest Home Financial Corp. OH NASDAQ 12.000 13.250 8.750 -4.00 -7.69 14.44 81.55 0.39 18.75 83.10 14.71 18.75
HVFD Haverfield Corporation OH NASDAQ 18.000 19.250 5.165 0.00 2.86 14.90 175.30 0.53 13.95 120.81 10.27 14.75
INBI Industrial Bancorp OH NASDAQ 10.250 16.000 9.875 -7.87 -32.70 10.95 56.45 NA NA 93.61 18.16 NA
LONF London Financial Corporation OH NASDAQ 10.500 11.250 9.750 2.44 0.00 NA NA NA NA NA NA NA
MFFC Milton Federal Financial Corp. OH NASDAQ 12.250 17.125 10.000 0.00 -18.33 14.91 78.76 1.37 16.78 82.16 15.55 18.28
OHSL OHSL Financial Corp. OH NASDAQ 20.500 22.000 11.500 -2.38 -1.20 20.94 171.71 0.72 13.49 97.90 11.94 13.76
PTRS Potters Financial Corp. OH NASDAQ 15.500 18.500 9.000 -3.88 -4.62 20.80 213.70 0.21 13.48 74.52 7.25 13.72
PVFC PVF Capital Corp. OH NASDAQ 19.000 21.000 6.474 5.56 -1.94 13.77 205.36 0.00 8.88 137.98 9.25 10.00
SFSL Security First Corp. OH NASDAQ 14.500 17.250 1.625 1.75 19.59 11.31 119.40 0.41 11.07 128.21 12.14 10.51
SHFC Seven Hills Financial Corp. OH NASDAQ 17.500 18.125 11.000 -3.45 6.06 17.99 84.83 0.86 58.33 97.28 20.63 60.34
SSBK Strongsville Savings Bank OH NASDAQ 21.875 22.250 15.500 4.17 0.57 16.81 209.10 0.45 11.39 130.13 10.46 12.79
SBCN Suburban Bancorporation, Inc. OH NASDAQ 15.500 18.500 10.500 3.33 5.08 17.48 133.13 0.55 29.25 88.67 11.64 20.13
THIR Third Financial Corp. OH NASDAQ 32.500 33.000 14.500 2.77 4.84 25.23 137.25 0.64 18.36 128.81 23.68 20.44
WOFC Western Ohio Financial Corp. OH NASDAQ 20.750 24.375 14.750 -6.74 -8.79 25.19 138.38 1.00 19.95 82.37 14.99 34.02
WFCO Winton Financial Corp. OH NASDAQ 11.250 15.000 3.750 -13.46 -9.09 10.61 142.40 0.41 9.07 106.03 7.90 10.82
FFWD Wood Bancorp, Inc. OH NASDAQ 13.250 13.500 8.000 1.92 6.00 13.14 90.07 0.22 12.62 100.84 14.71 12.99
KFBI Klamath First Bancorp OR NASDAQ 13.688 14.625 12.500 -1.35 3.31 14.90 53.73 NA NA 91.87 25.48 NA
BRFC Bridgeville Savings Bank PA NASDAQ 15.250 15.375 11.750 0.83 7.02 14.13 49.56 0.38 25.42 107.93 30.77 25.42
CVAL Chester Valley Bancorp Inc. PA NASDAQ 18.500 20.476 4.073 1.37 1.37 15.91 173.80 0.35 12.01 116.28 10.64 12.42
CMSB Commonwealth Bancorp, Inc. PA NASDAQ 10.625 12.389 5.790 2.41 -1.92 NA NA NA NA NA NA NA
FSBI Fidelity Bancorp, Inc. PA NASDAQ 16.000 18.182 3.756 0.00 -3.56 15.73 231.70 0.29 11.76 101.72 6.91 11.85
FBBC First Bell Bancorp, Inc. PA NASDAQ 13.563 14.250 10.000 0.47 0.92 14.24 69.88 0.10 12.33 95.25 19.41 12.44
FKFS First Keystone Financial PA NASDAQ 16.750 20.875 10.250 -1.47 -4.29 17.83 215.24 0.00 15.80 93.94 7.78 14.57
SHEN First Shenango Bancorp, Inc. PA NASDAQ 20.750 22.250 12.750 1.22 1.22 20.53 161.88 0.42 13.65 101.07 12.82 14.31
GAF GA Financial, Inc. PA AMSE 11.500 11.875 10.250 5.75 6.98 14.43 63.19 NA NA 79.70 18.20 NA
KELLER & COMPANY Page 9
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
HARL Harleysville Savings Bank PA NASDAQ 17.875 19.750 3.535 2.14 -0.69 15.38 231.24 0.38 10.51 116.22 7.73 9.99
LARL Laurel Capital Group, Inc. PA NASDAQ 14.750 16.500 3.627 0.00 -4.84 13.66 127.95 0.27 8.89 107.98 11.53 9.22
MLFB MLF Bancorp, Inc. PA NASDAQ 25.000 25.000 12.438 1.01 3.35 24.47 282.67 0.52 13.74 102.17 8.84 15.43
PVSA Parkvale Financial Corporation PA NASDAQ 27.000 28.500 2.688 5.63 -1.82 21.56 284.10 0.52 9.44 125.23 9.50 10.11
PBIX Patriot Bank Corp. PA NASDAQ 13.375 13.375 12.310 4.90 4.90 14.33 107.03 NA NA 93.34 12.50 NA
PWBC PennFirst Bancorp, Inc. PA NASDAQ 13.875 15.915 4.019 6.73 8.82 13.37 170.26 0.36 14.16 103.78 8.15 15.08
PWBK Pennwood Savings Bank PA NASDAQ 9.625 9.750 9.000 NA NA NA NA NA NA NA NA NA
PHFC Pittsburgh Home Financial Corp PA NASDAQ 10.500 11.125 9.500 5.00 4.37 13.93 84.32 NA NA 75.38 12.45 NA
PRBC Prestige Bancorp, Inc. PA NASDAQ 10.500 10.500 9.750 6.33 NA 15.86 106.55 NA NA 66.20 9.85 NA
PSAB Prime Bancorp, Inc. PA NASDAQ 19.250 20.682 3.194 6.94 6.94 15.58 173.03 0.66 11.88 123.56 11.13 12.75
PFNC Progress Financial Corporation PA NASDAQ 6.125 18.750 0.750 -2.00 -12.50 5.23 93.26 0.00 6.88 117.11 6.57 8.51
SVRN Sovereign Bancorp, Inc. PA NASDAQ 10.125 11.250 1.005 0.00 -1.79 7.75 185.25 0.08 9.46 130.65 5.47 9.83
THRD TF Financial Corporation PA NASDAQ 14.125 16.000 9.750 -1.74 0.89 17.97 116.93 0.29 13.99 78.60 12.08 14.41
THBC Troy Hill Bancorp, Inc. PA NASDAQ 13.375 14.000 10.250 0.94 2.88 16.73 75.37 0.32 12.50 79.95 17.75 13.65
WVFC WVS Financial Corporation PA NASDAQ 21.000 22.250 13.000 2.44 3.70 19.60 149.49 2.06 10.19 107.14 14.05 11.05
YFED York Financial Corp. PA NASDAQ 16.000 18.864 4.731 -3.03 -5.88 15.22 173.33 0.55 10.00 105.12 9.23 11.76
AMFB American Federal Bank, FSB SC NASDAQ 16.250 16.750 0.625 0.00 1.56 9.88 122.62 0.31 10.98 164.47 13.25 10.16
CFCP Coastal Financial Corp. SC NASDAQ 20.250 21.000 1.918 15.06 24.23 8.04 131.77 0.41 16.33 251.87 15.37 18.58
FFCH First Financial Holdings Inc. SC NASDAQ 19.000 22.250 4.000 8.57 -3.80 15.26 238.85 0.62 10.86 124.51 7.95 10.67
FSFC First Southeast Financial Corp SC NASDAQ 9.500 20.250 9.125 0.00 -48.65 7.67 74.4210.48 31.67 123.86 12.77 12.03
PALM Palfed, Inc. SC NASDAQ 12.688 18.500 3.500 4.64 0.50 10.27 122.09 0.04 14.93 123.54 10.39 17.62
SCCB S. Carolina Community Bancshrs SC NASDAQ 16.000 20.500 12.625 0.00 -3.03 16.80 59.01 0.55 19.75 95.24 27.11 19.75
HFFC HF Financial Corp. SD NASDAQ 15.250 16.750 5.500 -1.61 3.39 16.86 187.92 0.32 11.13 90.45 8.12 14.25
LFCT Leader Financial Corp. TN NASDAQ 46.250 46.375 14.500 5.11 4.23 26.78 322.79 0.66 10.58 172.70 14.33 10.83
TWIN Twin City Bancorp TN NASDAQ 16.625 18.250 10.500 0.76 2.31 15.69 114.01 0.55 13.09 105.96 14.58 15.11
CBSA Coastal Bancorp, Inc. TX NASDAQ 17.625 18.875 9.875 -4.73 -2.08 18.89 563.56 0.36 8.24 93.30 3.13 8.56
ETFS East Texas Financial Services TX NASDAQ 15.000 16.750 11.000 2.56 0.84 18.91 96.32 0.05 16.30 79.32 15.57 17.65
FBHC Fort Bend Holding Corp. TX NASDAQ 17.000 20.250 10.375 -1.45 -5.56 21.98 310.96 0.28 9.55 77.34 5.47 10.83
LOAN Horizon Bancorp TX NASDAQ 14.750 14.750 7.250 55.26 40.48 7.69 94.41 0.14 13.79 191.81 15.62 17.15
JXVL Jacksonville Bancorp, Inc. TX NASDAQ 10.625 11.990 7.141 1.19 6.25 NA NA NA NA NA NA NA
BFSB Bedford Bancshares, Inc. VA NASDAQ 17.000 18.750 10.250 3.03 3.03 16.96 104.88 0.43 12.88 100.24 16.21 12.88
CNIT CENIT Bancorp, Inc. VA NASDAQ 32.375 40.250 10.875 -6.16 -5.82 29.58 406.57 0.50 17.41 109.45 7.96 15.64
CFFC Community Financial Corp. VA NASDAQ 21.500 22.000 4.250 2.38 2.38 17.25 125.85 0.43 13.44 124.64 17.08 13.44
ESX Essex Bancorp, Inc. VA AMSE 2.000 19.250 0.750 -21.88 -30.43 7.72 300.38 0.00 NM 25.91 0.67 NM
KELLER & COMPANY Page 10
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
---------------------------------------------------- ------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
FFFC FFVA Financial Corp. VA NASDAQ 17.000 18.250 8.250 -1.45 11.48 16.88 100.91 0.35 14.05 100.71 16.85 14.29
FFRV Fidelity Financial Bankshares VA NASDAQ 13.000 14.750 2.381 -1.44 0.00 12.22 142.17 0.17 9.49 106.38 9.14 9.77
GSLC Guaranty Financial Corp. VA NASDAQ 7.250 8.500 6.313 -3.33 -9.38 6.93 112.02 0.00 8.84 104.62 6.47 14.22
LIFB Life Bancorp, Inc. VA NASDAQ 14.625 16.625 8.313 2.63 0.86 14.73 122.86 0.44 15.08 99.29 11.90 14.34
VABF Virginia Beach Fed. Financial VA NASDAQ 7.625 9.938 1.625 7.02 1.67 8.30 122.62 0.16 19.06 91.87 6.22 58.65
VFFC Virginia First Financial VA NASDAQ 11.750 14.250 1.250 -0.51 1.08 9.81 127.14 0.06 8.10 119.78 9.24 9.96
CASB Cascade Financial Corp. WA NASDAQ 17.000 17.250 2.662 3.03 14.86 9.94 159.90 0.00 22.08 171.03 10.63 45.95
FWWB First SB of Washington Bancorp WA NASDAQ 15.875 15.875 12.375 4.10 10.43 15.30 73.75 NA NA 103.76 21.53 NA
IWBK InterWest Bancorp, Inc. WA NASDAQ 24.750 25.125 8.478 1.54 7.33 14.94 219.20 0.44 11.15 165.66 11.29 11.84
MSEA Metropolitan Bancorp WA NASDAQ 16.875 17.000 3.636 25.00 20.54 13.79 205.11 0.00 10.89 122.37 8.23 10.17
STSA Sterling Financial Corp. WA NASDAQ 14.125 15.000 1.878 -4.24 4.63 11.01 272.67 0.00 15.69 128.29 5.18 16.62
WFSL Washington Federal, Inc. WA NASDAQ 22.125 23.967 1.723 11.32 5.99 14.14 119.31 0.88 11.17 156.47 18.54 11.64
AADV Advantage Bancorp, Inc. WI NASDAQ 33.500 34.500 10.600 0.75 -1.47 25.97 293.78 0.27 14.08 128.99 11.40 15.65
ABCW Anchor BanCorp Wisconsin WI NASDAQ 34.875 36.250 9.800 -0.36 4.89 24.00 355.58 0.32 12.92 145.31 9.81 13.41
FCBF FCB Financial Corp. WI NASDAQ 17.000 18.500 10.000 -4.23 -2.86 18.78 101.75 0.60 16.83 90.52 16.71 17.17
FFEC First Fed Bncshrs Eau Claire WI NASDAQ 15.375 16.190 8.375 1.65 10.29 14.22 103.08 0.17 17.88 108.12 14.92 17.08
FTFC First Federal Capital Corp. WI NASDAQ 21.000 22.875 1.449 6.33 -3.45 15.03 219.45 0.56 11.35 139.72 9.57 15.44
FFHC First Financial Corp. WI NASDAQ 22.625 24.000 1.392 -1.63 2.84 13.64 186.56 0.54 9.63 165.87 12.13 9.97
FNGB First Northern Capital Corp. WI NASDAQ 15.375 16.500 3.063 0.82 -2.38 16.10 132.01 0.58 16.18 95.50 11.65 16.90
HALL Hallmark Capital Corp. WI NASDAQ 15.250 16.250 9.875 0.00 3.39 18.72 266.87 0.00 11.47 81.46 5.71 12.10
MWFD Midwest Federal Financial WI NASDAQ 15.500 16.000 4.167 -1.59 6.90 10.21 109.16 0.14 13.48 151.81 14.20 16.67
NWEQ Northwest Equity Corp. WI NASDAQ 10.250 11.375 6.875 0.00 2.50 13.45 97.11 0.35 11.14 76.21 10.56 11.78
OSBF OSB Financial Corp. WI NASDAQ 23.000 24.875 14.500 0.00 -2.13 28.26 225.03 0.58 46.94 81.39 10.22 28.40
RELI Reliance Bancshares, Inc. WI NASDAQ 7.625 8.500 7.500 -6.90 -3.17 NA NA NA NA NA NA NA
SECP Security Capital Corporation WI NASDAQ 60.500 62.500 25.000 1.26 -1.63 56.63 369.03 0.45 17.79 106.83 16.39 16.99
STFR St. Francis Capital Corp. WI NASDAQ 25.875 28.000 12.625 4.55 1.47 23.39 238.04 0.30 10.48 110.62 10.87 14.14
FOBC Fed One Bancorp WV NASDAQ 14.000 16.250 5.358 -3.45 -5.88 16.73 134.09 0.54 11.29 83.68 10.44 11.29
CRZY Crazy Woman Creek Bancorp WY NASDAQ 10.125 11.000 10.000 -1.79 -4.71 14.61 47.57 NA NA 69.30 21.28 NA
TRIC Tri-County Bancorp, Inc. WY NASDAQ 18.875 18.875 11.375 4.86 4.86 20.76 116.42 0.45 19.46 90.92 16.21 19.87
KELLER & COMPANY Page 11
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
PER SHARE PRICING RATIOS
------------------------------------------------------- -------------------------------------
All All 12 Price/
Latest Time Time Mon. Qtr. Book Mon. Price/ Price/ Price/ Core
Price High Low Change Change Value Assets Div. Earnings Value Assets Earnings
State Exchange ($) ($) ($) (%) (%) ($) ($) ($) (X) (%) (%) (X)
----- -------- --- --- --- --- --- --- --- --- --- --- --- ---
ALL THRIFTS
AVERAGE 17.305 21.517 7.954 1.41 2.07 16.75 168.10 0.42 16.28 106.28 12.83 17.66
MEDIAN 15.750 17.500 9.125 0.94 1.38 16.10 137.25 0.35 13.48 100.23 11.29 14.52
HIGH 60.500 589.500 25.000 55.26 40.48 56.63 617.63 10.48 121.98 255.34 39.61 155.00
LOW 2.000 6.917 0.223 -21.88 -48.65 2.18 36.26 0.00 3.36 25.91 0.67 3.45
AVERAGE FOR STATE
IL 17.805 19.116 9.272 1.59 2.34 19.45 174.29 0.26 15.689 94.137 12.642 17.959
AVERAGE BY REGION
MIDWEST 18.028 19.768 8.970 0.23 0.34 17.88 156.53 0.39 16.69 104.29 13.93 18.31
NEW ENGLAND 18.238 19.546 5.878 2.83 9.85 17.83 242.76 0.49 11.65 101.79 7.92 14.33
MID ATLANTIC 16.508 18.522 7.181 2.25 3.54 16.24 170.24 0.36 13.07 103.58 11.26 14.18
SOUTHEAST 15.808 18.479 7.017 0.75 0.47 14.16 137.57 0.67 16.72 113.45 14.56 19.46
SOUTHWEST 15.238 16.785 9.681 4.44 1.67 15.63 164.14 0.31 13.32 103.61 13.38 14.35
WEST 18.380 39.325 6.458 3.98 6.59 16.81 228.30 0.32 21.27 110.45 10.08 20.06
AVERAGE BY EXCHANGE
NYSE 29.837 89.352 3.243 7.55 11.44 20.84 353.75 0.43 15.22 147.87 9.28 17.40
AMEX 12.597 14.676 9.936 -1.68 0.74 14.60 111.79 0.73 14.18 84.73 15.30 17.76
OTC/NASDAQ 17.048 19.021 8.038 1.32 1.73 16.68 162.59 0.41 16.37 105.51 12.87 17.67
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
PLE Pinnacle Bank AL 185,793 15,223 14,682 0.79 0.70 10.34 9.23 12/17/86 AMSE 889,824 15.91
SRN Southern Banc Company, Inc AL 109,768 22,293 NA 0.54 0.54 3.96 3.96 10/05/95 AMSE 1,454,750 17.09
SZB SouthFirst Bancshares, Inc. AL 88,899 13,235 13,235 0.55 0.37 3.24 2.19 02/14/95 AMSE 854,855 10.15
VAFD Valley Federal Savings Bank AL 118,625 9,595 9,595 0.08 0.07 0.96 0.85 10/15/87 NASDAQ 366,860 12.11
FFBH First Federal Bancshares of AR AR 466,101 36,255 36,255 NA NA NA NA 05/03/96 NASDAQ NA NA
FTF Texarkana First Financial Corp AR 163,391 33,683 33,683 1.77 1.77 10.80 10.80 07/07/95 AMSE 1,983,750 29.51
AHM Ahmanson & Company (H.F.) CA 49,506,630 2,777,356 2,637,334 0.92 0.26 15.79 4.50 10/01/72 NYSE 107,188,014 2894.08
AFFFZ America First Financial Fund CA 2,274,053 161,228 157,795 0.89 0.88 13.53 13.45 NA NASDAQ 6,010,589 161.53
BPLS Bank Plus Corp. CA 3,296,633 174,998 NA -1.74 -1.75 -30.56 -30.67 NA NASDAQ 18,242,465 159.62
BVFS Bay View Capital Corp. CA 3,388,847 206,177 181,928 0.06 0.36 0.85 5.12 05/09/86 NASDAQ 6,885,242 234.10
BYFC Broadway Financial Corp. CA 115,222 14,062 14,062 0.41 0.41 6.78 6.83 01/09/96 NASDAQ 892,688 9.26
CAL Cal Fed Bancorp, Inc. CA 14,045,400 683,200 683,200 0.82 0.73 14.79 13.13 03/01/83 NYSE 49,395,947 901.48
CFHC California Financial Holding CA 1,327,178 86,924 86,431 0.57 0.52 8.53 7.65 04/01/83 NASDAQ 4,688,652 101.98
CENF CENFED Financial Corp. CA 2,148,344 107,221 106,989 0.55 0.40 11.33 8.16 10/25/91 NASDAQ 5,040,437 112.15
CSA Coast Savings Financial CA 8,350,710 429,883 423,104 0.49 0.45 9.90 9.08 12/23/85 NYSE 18,583,617 608.61
DSL Downey Financial Corp. CA 4,712,294 391,919 385,323 0.69 0.61 8.44 7.49 01/01/71 NYSE 16,972,905 371.28
FSSB First FS&LA of San Bernardino CA 103,288 5,827 5,566 -0.17 -0.34 -2.90 -6.03 02/02/93 NASDAQ 328,296 3.78
FED FirstFed Financial Corp. CA 4,104,854 188,766 185,646 0.23 0.22 4.98 4.82 12/16/83 NYSE 10,508,897 182.59
GLN Glendale Federal Bank, FSB CA 14,456,564 957,451 898,235 0.28 0.42 4.43 6.82 10/01/83 NYSE 46,729,698 846.98
GDW Golden West Financial CA 35,775,375 2,362,246 2,224,420 0.81 0.79 12.46 12.25 05/29/59 NYSE 57,923,709 3243.73
GWF Great Western Financial CA 43,719,958 2,834,725 2,529,871 0.72 0.67 11.60 10.83 NA NYSE 137,392,481 3280.25
HTHR Hawthorne Financial Corp. CA 761,162 46,137 45,982 0.61 -0.02 12.77 -0.38 NA NASDAQ 2,599,000 22.74
HEMT HF Bancorp, Inc. CA 826,916 81,072 NA 0.26 0.26 2.31 2.31 06/30/95 NASDAQ 6,281,875 61.25
HBNK Highland Federal Bank FSB CA 441,911 34,626 34,626 0.22 0.21 3.92 3.87 NA NASDAQ 2,295,983 39.03
MBBC Monterey Bay Bancorp, Inc. CA 318,879 47,771 47,196 0.19 0.23 1.28 1.53 02/15/95 NASDAQ 3,414,063 42.68
NHSL NHS Financial, Inc. CA 284,191 25,033 24,987 0.45 0.45 5.34 5.34 NA NASDAQ 2,522,827 27.44
PSSB Palm Springs Savings Bank CA 192,093 11,693 11,693 0.62 0.34 10.80 5.85 NA NASDAQ 1,130,946 11.03
PFFB PFF Bancorp, Inc. CA 2,146,293 290,480 287,172 NA NA NA NA 03/29/96 NASDAQ 19,837,500 220.69
PROV Provident Financial Holdings CA 567,186 37,323 37,323 -0.72 -0.80 -9.81 -10.93 06/28/96 NASDAQ NA NA
QCBC Quaker City Bancorp, Inc. CA 725,085 67,926 67,628 0.53 0.51 5.25 5.08 12/30/93 NASDAQ 3,813,600 52.21
REDF RedFed Bancorp Inc. CA 857,959 48,329 48,329 -0.56 -0.90 -9.99 -16.03 04/08/94 NASDAQ 4,059,917 36.54
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
SGVB SGV Bancorp, Inc. CA 333,064 32,581 32,581 0.12 0.11 1.10 1.08 06/29/95 NASDAQ 2,727,656 24.55
WES Westcorp CA 3,027,248 312,836 NA 1.28 0.51 13.55 5.37 05/01/86 NYSE 25,977,094 461.09
FFBA First Colorado Bancorp, Inc. CO 1,501,330 245,056 242,168 1.09 1.09 8.16 8.13 01/02/96 NASDAQ 20,134,256 266.78
MORG Morgan Financial Corp. CO 71,654 10,501 10,501 0.97 0.93 6.38 6.12 01/11/93 NASDAQ 832,700 9.78
EGFC Eagle Financial Corp. CT 1,428,558 101,928 73,743 1.29 0.64 17.83 8.86 02/03/87 NASDAQ 4,491,493 106.67
FFES First Federal of East Hartford CT 947,807 57,007 56,846 0.57 0.57 8.65 8.58 06/23/87 NASDAQ 2,597,010 46.75
NTMG Nutmeg Federal S&LA CT 85,194 5,548 5,548 0.66 0.42 10.75 6.78 NA NASDAQ 707,814 5.49
WBST Webster Financial Corporation CT 3,837,220 214,669 167,767 0.60 0.63 10.69 11.19 12/12/86 NASDAQ 8,101,382 226.84
IFSB Independence Federal Savings DC 263,735 16,891 14,544 0.49 0.24 7.71 3.69 06/06/85 NASDAQ 1,278,935 9.27
BANC BankAtlantic Bancorp, Inc. FL 1,975,287 141,651 130,883 1.12 0.88 15.74 12.46 11/29/83 NASDAQ 14,926,166 167.17
BKUNA BankUnited Financial Corp. FL 738,491 69,468 66,955 1.12 0.13 14.68 1.64 12/11/85 NASDAQ 5,693,125 46.97
FFFG F.F.O. Financial Group, Inc. FL 305,683 18,408 18,408 0.45 0.45 6.83 6.75 10/13/88 NASDAQ 8,430,000 22.93
FFLC FFLC Bancorp, Inc. FL 332,087 56,404 56,404 0.94 0.94 5.51 5.51 01/04/94 NASDAQ 2,618,763 47.14
FFML First Family Financial Corp. FL 159,049 8,929 8,929 0.90 0.48 17.04 9.16 10/22/92 NASDAQ 545,000 11.45
FFPB First Palm Beach Bancorp, Inc. FL 1,438,024 113,606 110,733 0.73 0.69 8.92 8.44 09/29/93 NASDAQ 5,181,187 110.75
FFPC Florida First Bancorp, Inc. FL 302,689 21,349 21,349 0.90 0.83 13.27 12.31 11/06/86 NASDAQ 3,384,645 37.65
HOFL Home Financial Corp. FL 1,215,712 301,582 301,582 1.23 1.54 4.78 5.99 10/25/94 NASDAQ 24,716,619 321.32
SCSL Suncoast Savings and Loan FL 466,504 25,338 25,283 0.51 -0.16 8.77 -2.73 07/30/85 NASDAQ 1,989,930 12.69
CCFH CCF Holding Company GA 78,772 16,725 16,725 0.85 0.81 5.07 4.80 07/12/95 NASDAQ 1,130,738 13.57
EBSI Eagle Bancshares GA 611,512 57,175 57,175 0.98 0.97 13.09 12.96 04/01/86 NASDAQ 4,552,200 70.56
FGHC First Georgia Holding, Inc. GA 142,133 11,605 10,263 0.87 0.81 10.61 9.91 02/11/87 NASDAQ 2,023,711 14.67
FLFC First Liberty Financial Corp. GA 981,694 74,634 63,866 1.03 0.83 13.14 10.60 12/06/83 NASDAQ 3,981,578 83.61
FLAG FLAG Financial Corp. GA 225,960 21,599 21,599 0.92 0.81 9.91 8.77 12/11/86 NASDAQ 2,008,457 25.11
NFSL Newnan Savings Bank, FSB GA 160,656 18,605 18,483 1.89 1.65 17.69 15.47 03/01/86 NASDAQ 1,446,856 24.96
CASH First Midwest Financial, Inc. IA 342,095 39,029 36,450 1.06 1.05 8.14 8.05 09/20/93 NASDAQ 1,778,577 39.13
GFSB GFS Bancorp, Inc. IA 83,305 9,945 9,945 1.16 1.13 9.19 8.93 01/06/94 NASDAQ 509,600 10.32
HZFS Horizon Financial Svcs Corp. IA 73,464 8,390 8,390 0.53 0.43 4.38 3.55 06/30/94 NASDAQ 447,937 6.72
MFCX Marshalltown Financial Corp. IA 125,308 19,563 19,563 0.38 0.36 2.43 2.31 03/31/94 NASDAQ 1,411,475 21.88
MIFC Mid-Iowa Financial Corp. IA 115,260 10,807 10,791 0.93 0.92 10.00 9.79 10/14/92 NASDAQ 1,682,880 10.10
MWBI Midwest Bancshares, Inc. IA 138,628 9,244 9,244 1.01 0.70 14.64 10.14 11/12/92 NASDAQ 349,379 9.00
FFFD North Central Bancshares, Inc. IA 194,283 55,736 55,736 1.64 1.64 8.13 8.11 03/21/96 NASDAQ 4,011,057 44.12
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
PMFI Perpetual Midwest Financial IA 374,039 36,053 36,053 0.41 0.41 4.09 4.09 03/31/94 NASDAQ 2,017,082 34.29
SFFC StateFed Financial Corporation IA 76,705 14,928 14,928 1.19 1.19 5.99 5.99 01/05/94 NASDAQ 813,485 13.42
AVND Avondale Financial Corp. IL 592,727 58,798 58,798 0.62 0.45 5.81 4.20 04/07/95 NASDAQ 3,599,868 48.38
CBCI Calumet Bancorp, Inc. IL 500,814 80,507 80,507 1.31 1.31 7.85 7.84 02/20/92 NASDAQ 2,422,678 67.83
CBSB Charter Financial, Inc. IL 300,812 64,393 62,739 1.11 1.11 7.88 7.87 12/29/95 NASDAQ 4,974,016 59.07
CBK Citizens First Financial Corp. IL 232,196 15,765 15,765 0.43 0.35 6.49 5.34 05/01/96 AMSE NA NA
CSBF CSB Financial Group, Inc. IL 41,211 12,730 12,730 0.84 0.84 4.03 4.03 10/09/95 NASDAQ 1,035,000 9.44
DFIN Damen Financial Corp. IL 235,320 56,903 56,903 NA NA NA NA 10/02/95 NASDAQ 3,967,500 46.12
EGLB Eagle BancGroup, Inc. IL 150,974 11,515 11,515 -0.05 -0.11 -0.68 -1.59 07/01/96 NASDAQ NA NA
FBCI Fidelity Bancorp, Inc. IL 456,896 49,801 49,630 0.74 0.74 5.68 5.67 12/15/93 NASDAQ 2,930,608 47.99
FNSC Financial Security Corp. IL 258,452 39,841 39,841 0.77 0.91 5.46 6.46 12/29/92 NASDAQ 1,550,846 40.32
FFBI First Financial Bancorp, Inc. IL 88,615 7,865 7,865 0.70 0.57 6.53 5.33 10/04/93 NASDAQ 471,896 7.31
FMBD First Mutual Bancorp, Inc. IL 301,690 69,445 69,445 0.98 0.94 3.80 3.65 07/05/95 NASDAQ 4,126,600 51.07
FFDP FirstFed Bancshares IL 635,096 54,810 52,341 0.58 0.31 6.32 3.39 07/01/92 NASDAQ 3,399,116 59.91
GTPS Great American Bancorp IL 120,540 33,212 33,212 0.68 0.67 2.46 2.43 06/30/95 NASDAQ 1,849,562 26.36
HNFC Hinsdale Financial Corp. IL 662,482 55,463 53,831 0.63 0.57 8.18 7.37 07/07/92 NASDAQ 2,690,155 67.93
HMCI HomeCorp, Inc. IL 338,985 21,133 21,133 0.40 0.25 6.66 4.23 06/22/90 NASDAQ 1,128,579 20.31
KNK Kankakee Bancorp, Inc. IL 359,171 35,498 32,989 0.56 0.56 5.37 5.37 01/06/93 AMSE 1,433,718 27.78
LBCI Liberty Bancorp, Inc. IL 651,198 64,017 63,854 0.55 0.55 5.61 5.61 12/24/91 NASDAQ 2,477,022 61.93
MAFB MAF Bancorp, Inc. IL 3,117,149 242,226 206,596 0.85 0.86 14.21 14.30 01/12/90 NASDAQ 10,340,673 253.35
NBSI North Bancshares, Inc. IL 119,436 18,514 18,514 0.59 0.54 3.19 2.92 12/21/93 NASDAQ 1,113,631 16.98
SWBI Southwest Bancshares IL 356,692 40,010 40,010 1.15 1.14 8.95 8.89 06/24/92 NASDAQ 1,794,474 48.68
SPBC St. Paul Bancorp, Inc. IL 4,337,546 375,542 374,234 0.91 0.88 9.81 9.56 05/18/87 NASDAQ 17,988,321 413.73
STND Standard Financial, Inc. IL 2,274,536 266,294 265,772 0.81 0.73 6.06 5.53 08/01/94 NASDAQ 16,345,875 269.71
SFSB SuburbFed Financial Corp. IL 378,388 26,045 25,898 0.50 0.44 6.91 6.12 03/04/92 NASDAQ 1,257,019 21.68
WCBI Westco Bancorp IL 312,158 48,236 48,236 1.30 1.31 8.37 8.44 06/26/92 NASDAQ 2,621,643 56.04
FBCV 1ST Bancorp IN 263,483 21,729 21,729 2.05 -0.13 29.45 -1.87 04/07/87 NASDAQ 666,561 17.33
AMFC AMB Financial Corp. IN 80,533 16,147 16,147 0.50 0.50 4.75 4.75 04/01/96 NASDAQ NA NA
ASBI Ameriana Bancorp IN 402,051 44,609 44,547 0.92 0.91 7.38 7.28 03/02/87 NASDAQ 3,303,130 44.59
ATSB AmTrust Capital Corp. IN 73,072 7,553 7,472 0.31 0.07 2.75 0.60 03/28/95 NASDAQ 566,964 5.81
CBCO CB Bancorp, Inc. IN 195,658 19,319 19,319 1.38 1.38 14.64 14.64 12/28/92 NASDAQ 1,175,226 20.86
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
CBIN Community Bank Shares IN 223,914 25,482 25,482 0.91 0.88 7.91 7.71 04/10/95 NASDAQ 1,983,720 27.03
FFWC FFW Corp. IN 148,892 16,083 16,083 0.90 1.00 8.07 8.96 04/05/93 NASDAQ 739,176 13.31
FFED Fidelity Federal Bancorp IN 280,138 14,221 14,221 1.29 1.22 25.83 24.30 08/31/87 NASDAQ 2,493,229 32.02
FISB First Indiana Corporation IN 1,473,094 136,048 134,184 1.19 0.99 13.57 11.33 08/02/83 NASDAQ 8,294,482 199.07
HFGI Harrington Financial Group IN 418,196 23,117 23,117 0.37 0.40 9.49 10.12 NA NASDAQ 3,256,738 34.20
HBFW Home Bancorp IN 315,901 48,974 48,974 0.84 0.84 4.99 4.99 03/30/95 NASDAQ 2,886,815 44.02
HBBI Home Building Bancorp IN 43,135 6,015 6,015 0.41 0.38 2.86 2.64 02/08/95 NASDAQ 331,660 6.47
HOMF Home Federal Bancorp IN 630,015 51,517 49,619 1.23 1.04 15.14 12.85 01/23/88 NASDAQ 2,226,282 57.88
HWEN Home Financial Bancorp IN 39,426 3,410 3,410 0.82 0.82 8.77 8.77 07/02/96 NASDAQ NA NA
INCB Indiana Community Bank, SB IN 94,476 14,156 14,156 0.67 0.67 4.39 4.39 12/15/94 NASDAQ 922,039 14.06
IFSL Indiana Federal Corporation IN 717,720 70,504 65,491 1.02 0.96 10.75 10.07 02/04/87 NASDAQ 4,737,329 87.64
LOGN Logansport Financial Corp. IN 77,195 19,821 19,821 1.50 1.42 5.55 5.25 06/14/95 NASDAQ 1,322,500 17.60
MARN Marion Capital Holdings IN 177,767 41,511 41,511 1.41 1.41 5.86 5.86 03/18/93 NASDAQ 1,933,613 40.12
MFBC MFB Corp. IN 210,559 37,691 37,691 0.73 0.71 3.69 3.59 03/25/94 NASDAQ 1,973,980 27.14
NEIB Northeast Indiana Bancorp IN 154,128 29,125 29,125 1.19 1.19 5.46 5.46 06/28/95 NASDAQ 2,061,670 24.22
PFDC Peoples Bancorp IN 277,958 43,298 43,298 1.45 1.44 9.51 9.49 07/07/87 NASDAQ 2,345,512 46.32
PERM Permanent Bancorp, Inc. IN 395,903 41,494 40,949 0.34 0.34 2.94 2.92 04/04/94 NASDAQ 2,134,515 30.42
SOBI Sobieski Bancorp, Inc. IN 76,362 14,120 14,120 0.42 0.42 2.24 2.24 03/31/95 NASDAQ 836,860 10.67
WCHI Workingmens Capital Holdings IN 208,203 26,459 26,459 0.86 0.87 7.04 7.09 06/07/90 NASDAQ 1,808,560 36.85
FFSL First Independence Corp. KS 105,771 13,050 13,050 1.10 0.94 8.51 7.28 10/08/93 NASDAQ 583,421 10.36
LARK Landmark Bancshares, Inc. KS 200,469 33,050 33,050 0.93 0.83 5.45 4.86 03/28/94 NASDAQ 1,914,022 29.19
MCBS Mid Continent Bancshares Inc. KS 290,903 36,434 36,384 1.40 1.36 10.14 9.85 06/27/94 NASDAQ 2,061,250 36.98
WBCI WFS Bancorp, Inc. KS 267,829 34,405 34,390 0.67 0.73 5.71 6.18 06/03/94 NASDAQ 1,564,387 36.07
CKFB CKF Bancorp, Inc. KY 58,763 16,036 16,036 1.24 1.24 4.39 4.39 01/04/95 NASDAQ 994,150 19.88
CLAS Classic Bancshares, Inc. KY 66,083 19,500 19,500 0.46 0.43 2.18 2.01 12/29/95 NASDAQ 1,322,500 14.71
FSBS First Ashland Financial Corp KY 86,860 23,631 23,631 0.96 0.95 3.61 3.58 04/07/95 NASDAQ 1,463,039 26.33
FFKY First Federal Financial Corp. KY 352,671 49,946 46,681 1.60 1.46 11.28 10.28 07/15/87 NASDAQ 4,208,490 88.38
FLKY First Lancaster Bancshares KY 33,812 4,643 4,643 1.50 1.50 11.24 11.24 07/01/96 NASDAQ NA NA
FTSB Fort Thomas Financial Corp. KY 87,960 21,368 21,368 1.29 1.29 5.55 5.55 06/28/95 NASDAQ 1,573,775 22.82
FKKY Frankfort First Bancorp, Inc. KY 138,616 47,836 47,836 1.06 1.12 3.82 4.04 07/10/95 NASDAQ 3,450,000 48.73
GWBC Gateway Bancorp, Inc. KY 71,260 17,714 17,714 1.05 1.05 4.05 4.05 01/18/95 NASDAQ 1,132,372 15.99
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
GTFN Great Financial Corporation KY 2,477,204 281,206 276,685 1.00 0.81 8.18 6.68 03/31/94 NASDAQ 14,652,595 362.65
HFFB Harrodsburg First Fin Bancorp KY 108,710 31,161 31,161 NA NA NA NA 10/04/95 NASDAQ 2,182,185 31.10
KYF Kentucky First Bancorp, Inc. KY 83,981 19,841 19,841 1.12 1.12 5.27 5.27 08/29/95 AMSE 1,388,625 17.18
ANA Acadiana Bancshares, Inc. LA 225,248 17,697 17,697 -0.43 -0.11 -5.23 -1.34 07/16/96 AMSE NA NA
CZF CitiSave Financial Corp LA 79,717 14,497 14,484 1.15 1.08 7.47 6.98 07/14/95 AMSE 964,707 13.51
ISBF ISB Financial Corporation LA 623,720 120,802 120,752 1.24 1.23 6.22 6.18 04/07/95 NASDAQ 7,380,671 114.84
JEBC Jefferson Bancorp, Inc. LA 265,594 36,060 36,060 0.94 0.94 7.22 7.21 08/18/94 NASDAQ 2,195,635 48.30
MERI Meritrust Federal SB LA 228,419 17,338 17,338 1.01 0.98 13.70 13.38 NA NASDAQ 774,176 24.19
TSH Teche Holding Co. LA 346,115 59,404 59,404 1.17 1.15 6.66 6.55 04/19/95 AMSE 4,093,000 53.21
AFCB Affiliated Community Bancorp MA 983,904 96,871 96,159 0.74 0.88 6.71 7.98 10/19/95 NASDAQ 5,080,666 88.28
BFD BostonFed Bancorp, Inc. MA 777,997 88,947 88,947 0.49 0.45 4.66 4.28 10/24/95 AMSE 6,589,617 79.08
FMLY Family Bancorp MA 925,239 69,952 64,294 0.90 0.87 11.79 11.33 11/07/86 NASDAQ 4,215,211 104.85
ANBK American National Bancorp MD 449,019 49,011 49,011 0.34 0.33 3.88 3.80 10/31/95 NASDAQ 3,980,500 40.30
EQSB Equitable Federal Savings Bank MD 267,776 14,182 14,182 0.78 0.78 14.98 14.89 09/10/93 NASDAQ 600,000 14.85
FCIT First Citizens Financial Corp. MD 624,118 39,192 39,192 0.71 0.57 11.36 9.03 12/17/86 NASDAQ 2,914,100 48.35
FFWM First Financial-W. Maryland MD 326,489 40,919 40,919 0.43 0.39 3.56 3.27 02/11/92 NASDAQ 2,187,584 40.47
HRBF Harbor Federal Bancorp, Inc. MD 201,030 27,782 27,782 0.56 0.56 3.19 3.19 08/12/94 NASDAQ 1,754,420 21.93
HFMD Home Federal Corp. MD 216,684 18,673 18,417 1.19 1.17 14.29 14.01 02/10/84 NASDAQ 2,519,010 20.78
MFSL Maryland Federal Bancorp MD 1,128,449 94,654 93,158 0.79 0.56 9.60 6.77 06/02/87 NASDAQ 3,160,068 93.22
WSB Washington Savings Bank, FSB MD 254,968 20,959 20,959 0.94 0.71 12.56 9.48 NA AMSE 4,220,206 21.10
WHGB WHG Bancshares Corp. MD 111,704 23,008 23,008 NA NA NA NA 04/01/96 NASDAQ NA NA
MCBN Mid-Coast Bancorp, Inc. ME 55,048 4,976 4,976 0.60 0.55 6.65 6.10 11/02/89 NASDAQ 229,588 4.39
BWFC Bank West Financial Corp. MI 139,217 27,540 27,540 0.69 0.41 3.41 2.03 03/30/95 NASDAQ 2,296,040 22.52
CFSB CFSB Bancorp, Inc. MI 791,610 65,067 65,067 0.96 0.90 11.70 10.96 06/22/90 NASDAQ 4,466,741 92.68
DNFC D & N Financial Corp. MI 1,364,024 78,954 77,886 1.08 0.99 19.53 17.89 02/13/85 NASDAQ 7,564,730 105.91
MSBF MSB Financial, Inc. MI 56,317 12,747 12,747 1.92 1.76 7.79 7.13 02/06/95 NASDAQ 675,804 12.16
MSBK Mutual Savings Bank, FSB MI 680,033 38,616 38,616 0.01 -0.08 0.18 -1.55 07/17/92 NASDAQ 4,274,154 24.04
OFCP Ottawa Financial Corp. MI 782,145 80,338 64,443 0.91 0.90 5.72 5.65 08/19/94 NASDAQ 5,414,546 87.99
SJSB SJS Bancorp MI 150,752 17,587 17,587 0.63 0.61 5.00 4.87 02/16/95 NASDAQ 982,622 18.18
SFB Standard Federal Bancorp MI 15,239,983 962,935 754,005 0.95 0.82 14.09 12.27 01/21/87 NYSE 31,324,268 1205.98
THR Three Rivers Financial Corp. MI 85,138 13,044 12,986 NA NA NA NA 08/24/95 AMSE 859,625 11.39
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
BDJI First Federal Bancorporation MN 104,969 13,918 13,918 0.70 0.69 4.74 4.72 04/04/95 NASDAQ 778,406 10.17
FFHH FSF Financial Corp. MN 331,395 47,624 47,624 0.64 0.64 3.79 3.76 10/07/94 NASDAQ 3,477,694 41.30
HMNF HMN Financial, Inc. MN 542,012 90,879 90,879 1.10 0.98 6.27 5.59 06/30/94 NASDAQ 5,180,210 75.76
MIVI Mississippi View Holding Co. MN 69,983 13,197 13,197 1.32 1.17 6.73 5.98 03/24/95 NASDAQ 957,593 10.89
QCFB QCF Bancorp, Inc. MN 145,608 31,760 31,760 1.51 1.51 7.61 7.61 04/03/95 NASDAQ 1,782,750 25.63
TCB TCF Financial Corp. MN 7,000,871 523,788 500,956 1.43 1.37 20.06 19.14 06/17/86 NYSE 35,924,268 1194.48
WEFC Wells Financial Corp. MN 196,184 29,327 29,327 0.81 0.79 5.96 5.77 04/11/95 NASDAQ 2,187,500 22.70
CMRN Cameron Financial Corp MO 172,484 45,775 45,775 1.60 1.58 5.72 5.64 04/03/95 NASDAQ 2,850,180 39.19
CAPS Capital Savings Bancorp, Inc. MO 202,554 21,136 21,136 0.95 0.95 8.96 8.96 12/29/93 NASDAQ 1,039,079 18.44
CNSB CNS Bancorp, Inc. MO 85,390 9,180 9,180 0.22 0.26 2.14 2.54 06/12/96 NASDAQ NA NA
FBSI First Bancshares, Inc. MO 140,471 23,771 23,725 0.79 0.78 4.42 4.34 12/22/93 NASDAQ 1,301,576 21.80
GSBC Great Southern Bancorp, Inc. MO 658,997 66,706 65,583 1.74 1.63 17.18 16.11 12/14/89 NASDAQ 4,434,331 109.20
HFSA Hardin Bancorp, Inc. MO 86,949 14,932 14,932 0.76 0.75 4.25 4.23 09/29/95 NASDAQ 1,012,180 11.51
JSBA Jefferson Savings Bancorp MO 1,114,294 81,088 66,842 0.62 0.57 8.90 8.19 04/08/93 NASDAQ 4,181,563 123.88
JOAC Joachim Bancorp, Inc. MO 36,779 10,751 10,751 0.63 0.63 2.82 2.82 12/28/95 NASDAQ 760,437 9.51
LXMO Lexington B&L Financial Corp. MO 49,981 7,195 7,195 1.17 1.23 8.36 8.82 06/06/96 NASDAQ NA NA
MBLF MBLA Financial Corp. MO 195,074 28,365 28,365 0.70 0.70 4.83 4.81 06/24/93 NASDAQ 1,371,738 28.81
MFSB Mutual Bancompany MO 53,311 6,236 6,236 0.20 0.23 1.84 2.10 02/02/95 NASDAQ 333,500 5.59
NASB North American Savings Bank MO 664,250 48,808 46,849 1.33 1.22 18.15 16.65 09/27/85 NASDAQ 2,276,148 73.69
NSLB NS&L Bancorp, Inc. MO 59,052 13,868 13,868 0.92 0.81 3.83 3.39 06/08/95 NASDAQ 887,814 10.88
PCBC Perry County Financial Corp. MO 78,480 15,733 15,733 1.00 0.97 4.86 4.76 02/13/95 NASDAQ 856,452 15.42
RFED Roosevelt Financial Group MO 9,327,772 516,317 NA 0.64 0.86 12.31 16.46 01/23/87 NASDAQ 42,145,561 811.30
SMFC Sho-Me Financial Corp. MO 280,027 30,787 30,787 0.85 0.83 6.89 6.66 07/01/94 NASDAQ 1,732,674 26.86
SMBC Southern Missouri Bancorp, Inc MO 161,992 26,572 26,572 0.87 0.82 4.98 4.67 04/13/94 NASDAQ 1,724,013 23.92
CFTP Community Federal Bancorp MS 201,650 66,523 66,523 1.29 1.27 6.12 5.99 03/26/96 NASDAQ 4,628,750 62.49
FFBS FFBS BanCorp, Inc. MS 123,553 24,170 24,170 1.32 1.32 6.50 6.50 07/01/93 NASDAQ 1,572,883 29.88
MGNL Magna Bancorp, Inc. MS 1,308,657 125,819 119,043 1.71 1.70 17.51 17.38 03/13/91 NASDAQ 6,851,434 255.22
GBCI Glacier Bancorp, Inc. MT 408,467 38,472 38,425 1.59 1.59 16.40 16.41 03/30/84 NASDAQ 3,361,133 71.42
SFBM Security Bancorp MT 360,021 32,128 27,666 0.69 0.52 8.01 6.01 11/20/86 NASDAQ 1,462,182 29.61
UBMT United Financial Corp. MT 104,574 24,609 24,609 1.50 1.50 6.64 6.63 09/23/86 NASDAQ 1,223,312 22.02
WSTR WesterFed Financial Corp. MT 563,931 78,607 78,607 0.81 0.74 5.93 5.44 01/10/94 NASDAQ 4,395,204 65.38
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
COOP Cooperative Bankshares, Inc. NC 316,654 29,494 26,038 0.29 0.28 3.14 3.06 08/21/91 NASDAQ 1,491,698 25.36
SOPN First Savings Bancorp, Inc. NC 256,294 67,178 67,178 1.48 1.51 5.68 5.78 01/06/94 NASDAQ 3,744,000 68.33
GSFC Green Street Financial Corp. NC 178,965 62,755 62,755 NA NA NA NA 04/04/96 NASDAQ 4,298,125 55.88
HFNC HFNC Financial Corp. NC 716,277 244,362 244,362 NA NA NA NA 12/29/95 NASDAQ 17,192,500 255.74
KSAV KS Bancorp, Inc. NC 93,536 13,835 13,821 1.11 1.12 6.88 6.97 12/30/93 NASDAQ 663,263 11.94
MBSP Mitchell Bancorp, Inc. NC 27,596 6,078 6,078 0.92 0.92 4.24 4.24 07/12/96 NASDAQ NA NA
PDB Piedmont Bancorp, Inc. NC 128,711 37,050 37,050 1.46 1.48 6.69 6.79 12/08/95 AMSE 2,645,000 34.72
SSB Scotland Bancorp, Inc NC 70,488 24,706 24,706 NA NA NA NA 04/01/96 AMSE 1,840,000 22.54
SSM Stone Street Bancorp, Inc. NC 116,101 39,117 39,117 NA NA NA NA 04/01/96 AMSE NA NA
UFRM United Federal Savings Bank NC 252,170 20,859 20,859 0.87 0.77 11.31 10.05 07/01/80 NASDAQ 3,065,064 24.52
CFB Commercial Federal Corporation NE 6,607,670 413,277 372,543 0.84 0.83 14.74 14.59 12/31/84 NYSE 15,089,701 577.18
EBCP Eastern Bancorp NH 840,534 64,880 61,257 0.72 0.54 9.60 7.16 11/17/83 NASDAQ 3,651,534 59.34
NHTB New Hampshire Thrift Bncshrs NH 252,481 19,417 19,417 0.58 0.61 7.41 7.74 05/22/86 NASDAQ 1,689,503 16.47
FBER 1st Bergen Bancorp NJ 252,173 43,397 43,397 NA NA NA NA 04/01/96 NASDAQ 3,174,000 28.96
CJFC Central Jersey Financial NJ 468,272 55,612 51,821 1.13 1.07 10.41 9.88 09/01/84 NASDAQ 2,668,269 68.04
COFD Collective Bancorp, Inc. NJ 5,145,471 364,304 339,997 1.07 1.06 15.71 15.51 02/07/84 NASDAQ 20,374,141 481.34
FSPG First Home Bancorp, Inc. NJ 466,363 30,396 29,572 1.01 0.96 15.60 14.84 04/20/87 NASDAQ 2,030,009 38.06
FSFI First State Financial Services NJ 628,684 43,014 40,765 0.63 0.49 9.27 7.24 12/18/87 NASDAQ 4,024,658 49.30
FMCO FMS Financial Corporation NJ 517,943 34,327 33,491 0.83 0.83 12.68 12.66 12/14/88 NASDAQ 2,467,593 39.79
IBSF IBS Financial Corp. NJ 748,745 149,085 149,085 1.05 1.06 4.99 5.05 10/13/94 NASDAQ 11,002,393 143.03
LVSB Lakeview Financial NJ 455,155 45,287 34,781 1.15 0.70 10.25 6.23 12/22/93 NASDAQ 2,265,704 44.46
LFBI Little Falls Bancorp, Inc. NJ 282,232 43,813 40,416 NA NA NA NA 01/05/96 NASDAQ 3,041,750 31.56
OCFC Ocean Financial Corp. NJ 1,036,445 92,351 92,351 0.80 0.83 9.44 9.70 07/03/96 NASDAQ NA NA
PBCI Pamrapo Bancorp, Inc. NJ 365,553 56,543 56,058 1.34 1.34 8.52 8.52 11/14/89 NASDAQ 3,280,964 63.16
PFSB PennFed Financial Services,Inc NJ 1,086,524 90,564 72,134 0.82 0.81 8.36 8.29 07/15/94 NASDAQ 4,823,665 74.77
PULS Pulse Bancorp NJ 505,034 39,338 39,338 1.19 1.19 10.28 10.28 09/18/86 NASDAQ 3,049,378 53.36
SFIN Statewide Financial Corp. NJ 634,464 70,421 70,218 NA NA NA NA 10/02/95 NASDAQ 5,269,752 67.85
WYNE Wayne Bancorp, Inc. NJ 207,997 17,299 17,299 0.46 0.59 5.12 6.51 06/27/96 NASDAQ NA NA
WWFC Westwood Financial Corporation NJ 84,779 5,978 4,717 0.67 0.67 9.40 9.40 06/07/96 NASDAQ NA NA
FSBC First Savings Bank, FSB NM 115,492 5,471 5,471 0.31 0.24 6.81 5.26 08/08/86 NASDAQ 695,698 4.44
GUPB GFSB Bancorp, Inc. NM 70,422 16,216 16,216 1.25 1.25 4.87 4.87 06/30/95 NASDAQ 948,750 12.81
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
ALBK ALBANK Financial Corporation NY 3,325,592 316,703 279,777 0.97 0.97 9.50 9.49 04/01/92 NASDAQ 13,287,933 350.47
ALBC Albion Banc Corp. NY 56,692 6,072 6,072 0.30 0.25 2.87 2.46 07/26/93 NASDAQ 260,714 4.30
ASFC Astoria Financial Corporation NY 7,078,383 561,667 456,987 0.74 0.67 8.56 7.82 11/18/93 NASDAQ 21,509,444 583.44
BFSI BFS Bankorp, Inc. NY 621,324 48,620 48,620 1.84 1.78 24.09 23.30 05/12/88 NASDAQ 1,635,488 61.74
CARV Carver Federal Savings Bank NY 362,369 34,793 33,177 0.21 0.18 2.15 1.94 10/25/94 NASDAQ 2,314,375 18.52
FIBC Financial Bancorp, Inc. NY 262,497 26,224 NA 0.66 0.64 5.76 5.65 08/17/94 NASDAQ 1,796,122 22.45
HAVN Haven Bancorp, Inc. NY 1,550,275 94,068 93,515 0.74 0.71 11.42 11.05 09/23/93 NASDAQ 4,320,060 121.50
LISB Long Island Bancorp, Inc. NY 5,221,019 521,711 521,711 0.93 0.85 8.78 7.99 04/18/94 NASDAQ 24,805,349 758.05
NYB New York Bancorp Inc. NY 2,918,120 158,374 158,374 1.27 1.20 21.77 20.51 01/28/88 NYSE 11,491,858 293.04
PEEK Peekskill Financial Corp. NY 191,323 59,774 59,774 1.23 1.27 4.96 5.09 12/29/95 NASDAQ 4,099,750 48.17
PKPS Poughkeepsie Savings Bank, FSB NY 840,491 70,958 70,958 1.70 2.36 21.07 29.34 11/19/85 NASDAQ 12,549,325 62.75
RELY Reliance Bancorp, Inc. NY 1,782,550 153,619 104,190 0.83 0.79 7.61 7.23 03/31/94 NASDAQ 9,128,739 142.64
SFED SFS Bancorp, Inc. NY 164,366 22,287 22,287 0.69 0.70 4.88 4.95 06/30/95 NASDAQ 1,292,450 16.48
TPNZ Tappan Zee Financial, Inc. NY 119,167 21,499 21,499 0.80 0.74 5.22 4.85 10/05/95 NASDAQ 1,553,062 18.64
YFCB Yonkers Financial Corporation NY 242,826 49,021 49,021 NA NA NA NA 04/18/96 NASDAQ 3,570,750 34.89
ASBP ASB Financial Corp. OH 112,988 25,643 25,643 1.01 1.01 4.30 4.30 05/11/95 NASDAQ 1,713,960 25.71
CAFI Camco Financial Corporation OH 343,711 28,625 28,625 1.22 0.94 15.56 11.93 NA NASDAQ 2,070,051 35.73
COFI Charter One Financial OH 13,951,846 934,478 863,715 0.42 1.12 6.39 17.06 01/22/88 NASDAQ 45,009,764 1569.72
CRCL Circle Financial Corp. OH 229,406 24,436 21,196 0.49 0.42 4.32 3.71 08/06/91 NASDAQ 708,096 18.59
CTZN CitFed Bancorp, Inc. OH 2,661,006 175,271 152,777 0.71 0.64 10.20 9.11 01/23/92 NASDAQ 5,691,322 222.67
CIBI Community Investors Bancorp OH 85,785 11,869 11,869 1.01 0.96 6.98 6.63 02/07/95 NASDAQ 701,246 10.34
EFBI Enterprise Federal Bancorp OH 203,431 31,470 31,405 1.03 0.68 5.52 3.65 10/17/94 NASDAQ 2,085,215 31.02
FFDF FFD Financial Corp. OH 76,159 8,302 8,302 0.87 0.82 6.92 6.51 04/03/96 NASDAQ NA NA
FFYF FFY Financial Corp. OH 573,162 105,162 105,162 1.21 1.25 6.50 6.72 06/28/93 NASDAQ 5,192,895 117.49
FFOH Fidelity Financial of Ohio OH 251,188 51,087 51,087 0.87 0.87 5.60 5.59 03/04/96 NASDAQ 4,073,589 40.74
FDEF First Defiance Financial OH 520,666 126,605 126,605 1.21 1.19 5.29 5.21 10/02/95 NASDAQ 10,432,476 108.24
FFBZ First Federal Bancorp, Inc. OH 177,778 14,022 14,003 1.14 1.12 15.12 14.89 07/13/92 NASDAQ 784,658 18.44
FFHS First Franklin Corporation OH 216,508 20,287 20,080 0.62 0.61 6.56 6.47 01/26/88 NASDAQ 1,165,318 17.48
FFSW FirstFederal Financial Svcs OH 1,044,608 82,838 71,588 1.12 0.95 13.85 11.82 03/31/87 NASDAQ 3,583,829 104.83
GFCO Glenway Financial Corp. OH 273,890 26,485 25,854 0.56 0.55 5.82 5.75 11/30/90 NASDAQ 1,145,431 23.45
HHFC Harvest Home Financial Corp. OH 73,005 12,930 12,930 0.80 0.80 4.31 4.31 10/10/94 NASDAQ 895,182 10.74
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
HVFD Haverfield Corporation OH 334,226 28,414 28,352 0.71 0.67 8.57 8.10 03/19/85 NASDAQ 1,906,591 36.23
INBI Industrial Bancorp OH 313,563 60,799 60,799 1.57 1.57 7.13 7.13 08/01/95 NASDAQ 5,554,500 62.49
LONF London Financial Corporation OH 37,552 7,834 7,834 NA NA NA NA 04/01/96 NASDAQ NA NA
MFFC Milton Federal Financial Corp. OH 178,289 33,756 33,756 1.04 0.96 4.80 4.41 10/07/94 NASDAQ 2,263,797 27.73
OHSL OHSL Financial Corp. OH 209,037 25,494 25,494 0.95 0.93 7.55 7.41 02/10/93 NASDAQ 1,217,386 24.35
PTRS Potters Financial Corp. OH 113,862 11,081 11,081 0.54 0.53 5.67 5.55 12/31/93 NASDAQ 532,809 9.32
PVFC PVF Capital Corp. OH 318,100 21,325 21,325 1.13 1.00 17.86 15.90 12/30/92 NASDAQ 1,548,957 30.20
SFSL Security First Corp. OH 588,592 55,732 54,624 1.21 1.27 13.36 13.98 01/22/88 NASDAQ 4,929,612 70.25
SHFC Seven Hills Financial Corp. OH 45,511 9,651 9,651 0.36 0.34 1.69 1.61 12/31/93 NASDAQ 536,472 7.78
SSBK Strongsville Savings Bank OH 529,187 42,554 41,701 0.99 0.88 11.84 10.54 NA NASDAQ 2,530,800 51.88
SBCN Suburban Bancorporation, Inc. OH 197,137 25,639 25,639 0.39 0.57 2.95 4.30 09/30/93 NASDAQ 1,480,732 23.88
THIR Third Financial Corp. OH 155,911 28,655 28,655 1.37 1.23 7.66 6.86 03/25/93 NASDAQ 1,135,954 36.35
WOFC Western Ohio Financial Corp. OH 319,558 58,161 54,774 1.12 0.66 4.19 2.46 07/29/94 NASDAQ 2,309,342 52.54
WFCO Winton Financial Corp. OH 282,833 21,083 20,544 0.94 0.80 12.39 10.50 08/04/88 NASDAQ 1,986,152 28.30
FFWD Wood Bancorp, Inc. OH 139,718 20,395 20,395 1.17 1.13 8.14 7.85 08/31/93 NASDAQ 1,551,255 19.13
KFBI Klamath First Bancorp OR 604,663 167,694 167,694 1.34 1.34 6.64 6.64 10/05/95 NASDAQ 11,254,475 150.53
BRFC Bridgeville Savings Bank PA 55,712 15,883 15,883 1.24 1.24 4.17 4.17 10/07/94 NASDAQ 1,124,125 15.18
CVAL Chester Valley Bancorp Inc. PA 274,575 25,123 25,123 0.91 0.88 10.03 9.63 03/27/87 NASDAQ 1,579,803 28.83
CMSB Commonwealth Bancorp, Inc. PA 1,657,690 137,683 120,977 0.78 0.70 8.41 7.52 06/17/96 NASDAQ NA NA
FSBI Fidelity Bancorp, Inc. PA 317,315 21,544 21,434 0.65 0.65 8.66 8.53 06/24/88 NASDAQ 1,369,511 22.60
FBBC First Bell Bancorp, Inc. PA 570,649 116,265 116,265 1.62 1.61 7.34 7.30 06/29/95 NASDAQ 8,166,450 112.29
FKFS First Keystone Financial PA 278,204 23,043 23,043 0.48 0.52 5.49 5.96 01/26/95 NASDAQ 1,292,500 24.56
SHEN First Shenango Bancorp, Inc. PA 369,279 46,836 46,836 1.03 0.98 7.45 7.10 04/06/93 NASDAQ 2,281,250 46.20
GAF GA Financial, Inc. PA 562,351 128,420 128,420 0.78 0.96 5.90 7.26 03/26/96 AMSE 8,900,000 97.90
HARL Harleysville Savings Bank PA 298,172 19,826 19,826 0.81 0.85 11.83 12.43 08/04/87 NASDAQ 1,289,442 22.89
LARL Laurel Capital Group, Inc. PA 193,008 20,609 20,609 1.35 1.31 13.23 12.79 02/20/87 NASDAQ 1,508,464 23.76
MLFB MLF Bancorp, Inc. PA 1,765,812 140,337 136,838 0.71 0.64 7.88 7.04 08/11/94 NASDAQ 6,246,900 149.14
PVSA Parkvale Financial Corporation PA 919,242 69,765 69,489 1.06 0.99 15.13 14.14 07/16/87 NASDAQ 3,235,643 81.70
PBIX Patriot Bank Corp. PA 417,746 54,003 54,003 0.63 0.65 4.91 5.08 12/04/95 NASDAQ 3,902,995 49.76
PWBC PennFirst Bancorp, Inc. PA 680,434 53,430 48,680 0.61 0.58 7.46 7.08 06/13/90 NASDAQ 3,996,494 47.96
PWBK Pennwood Savings Bank PA 42,366 4,081 4,081 NA NA NA NA 07/15/96 NASDAQ NA NA
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
PHFC Pittsburgh Home Financial Corp PA 184,002 30,406 30,406 NA NA NA NA 04/01/96 NASDAQ 2,182,125 21.95
PRBC Prestige Bancorp, Inc. PA 102,609 15,273 15,273 NA NA NA NA 06/27/96 NASDAQ 963,023 10.11
PSAB Prime Bancorp, Inc. PA 644,560 58,048 54,425 1.02 0.95 10.90 10.19 11/21/88 NASDAQ 3,725,056 69.14
PFNC Progress Financial Corporation PA 347,858 19,508 19,374 0.91 0.71 18.78 14.73 07/18/83 NASDAQ 3,730,000 24.25
SVRN Sovereign Bancorp, Inc. PA 9,183,447 461,466 344,022 0.79 0.76 14.64 14.24 08/12/86 NASDAQ 49,573,278 495.73
THRD TF Financial Corporation PA 528,910 75,122 75,122 0.91 0.88 5.94 5.72 07/13/94 NASDAQ 4,523,386 68.26
THBC Troy Hill Bancorp, Inc. PA 80,484 17,865 17,865 1.38 1.26 6.09 5.57 06/27/94 NASDAQ 1,067,917 14.42
WVFC WVS Financial Corporation PA 259,622 34,038 34,038 1.51 1.39 10.19 9.38 11/29/93 NASDAQ 1,736,760 36.04
YFED York Financial Corp. PA 1,048,673 92,078 92,078 0.97 0.83 11.42 9.78 02/01/84 NASDAQ 6,049,983 108.90
AMFB American Federal Bank, FSB SC 1,339,147 109,941 101,420 1.29 1.41 15.99 17.42 01/19/89 NASDAQ 10,921,085 163.82
CFCP Coastal Financial Corp. SC 452,809 27,641 27,641 1.04 0.92 17.09 15.04 09/26/90 NASDAQ 3,436,403 61.17
FFCH First Financial Holdings Inc. SC 1,523,224 97,330 97,330 0.78 0.79 11.81 11.97 11/10/83 NASDAQ 6,377,369 114.79
FSFC First Southeast Financial Corp SC 326,573 33,669 33,669 0.31 0.82 1.61 4.26 10/08/93 NASDAQ 4,388,231 43.88
PALM Palfed, Inc. SC 638,002 53,666 51,136 0.69 0.58 8.53 7.16 12/15/85 NASDAQ 5,225,571 65.32
SCCB S. Carolina Community Bancshrs SC 44,088 12,553 12,553 1.35 1.35 4.50 4.50 07/07/94 NASDAQ 747,188 12.70
HFFC HF Financial Corp. SD 574,027 51,514 51,355 0.78 0.61 8.68 6.79 04/08/92 NASDAQ 3,054,572 43.53
LFCT Leader Financial Corp. TN 3,211,064 266,390 266,390 1.48 1.45 18.45 18.01 09/30/93 NASDAQ 9,947,794 445.16
TWIN Twin City Bancorp TN 102,423 14,095 14,095 1.08 0.93 7.84 6.79 01/04/95 NASDAQ 898,404 15.27
CBSA Coastal Bancorp, Inc. TX 2,796,568 95,091 78,680 0.40 0.38 11.69 11.27 NA NASDAQ 4,962,344 89.32
ETFS East Texas Financial Services TX 114,961 22,570 22,570 0.89 0.83 4.58 4.27 01/10/95 NASDAQ 1,193,568 17.68
FBHC Fort Bend Holding Corp. TX 254,739 18,008 18,008 0.70 0.62 9.62 8.50 06/30/93 NASDAQ 819,198 14.54
LOAN Horizon Bancorp TX 130,930 11,195 10,830 1.47 1.18 16.04 12.84 NA NASDAQ 1,386,757 15.60
JXVL Jacksonville Bancorp, Inc. TX 213,062 35,582 35,582 0.79 0.79 7.47 7.47 04/01/96 NASDAQ NA NA
BFSB Bedford Bancshares, Inc. VA 121,783 18,530 18,530 1.29 1.28 7.96 7.94 08/22/94 NASDAQ 1,161,169 19.30
CNIT CENIT Bancorp, Inc. VA 655,771 47,716 46,010 0.48 0.54 6.76 7.51 08/06/92 NASDAQ 1,612,952 54.84
CFFC Community Financial Corp. VA 159,793 21,900 21,900 1.30 1.30 9.71 9.70 03/30/88 NASDAQ 1,269,698 26.66
ESX Essex Bancorp, Inc. VA 315,568 23,114 14,739 0.32 -0.77 6.11 -14.69 NA AMSE 1,050,547 2.76
FFFC FFVA Financial Corp. VA 522,811 81,442 79,774 1.24 1.22 7.51 7.37 10/12/94 NASDAQ 5,180,952 94.55
FFRV Fidelity Financial Bankshares VA 325,814 28,010 27,993 1.00 0.97 12.03 11.71 05/01/86 NASDAQ 2,291,681 31.51
GSLC Guaranty Financial Corp. VA 102,967 6,373 6,373 0.68 0.42 10.91 6.77 NA NASDAQ 919,168 7.12
LIFB Life Bancorp, Inc. VA 1,240,520 148,718 143,199 0.87 0.91 6.25 6.56 10/11/94 NASDAQ 10,097,094 142.62
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
VABF Virginia Beach Fed. Financial VA 608,832 41,206 41,206 0.29 0.10 4.81 1.56 11/01/80 NASDAQ 4,965,094 34.14
VFFC Virginia First Financial VA 713,931 55,114 53,131 1.21 0.98 16.02 13.01 01/01/78 NASDAQ 5,615,450 67.39
CASB Cascade Financial Corp. WA 326,266 20,269 20,269 0.56 0.27 8.90 4.22 09/16/92 NASDAQ 2,040,485 27.75
FWWB First SB of Washington Bancorp WA 743,176 154,142 154,142 1.11 1.06 6.62 6.35 11/01/95 NASDAQ 10,077,498 136.05
IWBK InterWest Bancorp, Inc. WA 1,413,926 96,338 93,662 1.11 1.05 15.69 14.79 NA NASDAQ 6,450,308 154.00
MSEA Metropolitan Bancorp WA 761,014 51,166 46,402 0.78 0.83 11.41 12.23 01/09/90 NASDAQ 3,710,205 50.09
STSA Sterling Financial Corp. WA 1,479,643 85,745 74,141 0.45 0.43 7.73 7.39 NA NASDAQ 5,426,398 80.04
WFSL Washington Federal, Inc. WA 5,040,588 597,495 569,151 1.78 1.71 14.47 13.84 11/17/82 NASDAQ 42,246,383 866.05
AADV Advantage Bancorp, Inc. WI 996,719 94,116 81,912 0.90 0.81 9.41 8.45 03/23/92 NASDAQ 3,392,694 115.35
ABCW Anchor BanCorp Wisconsin WI 1,754,556 118,402 115,297 0.88 0.85 12.13 11.69 07/16/92 NASDAQ 4,934,350 166.53
FCBF FCB Financial Corp. WI 255,660 47,192 47,192 1.03 1.01 5.37 5.26 09/24/93 NASDAQ 2,512,614 45.23
FFEC First Fed Bncshrs Eau Claire WI 706,672 97,457 93,632 0.87 0.91 5.70 5.91 10/12/94 NASDAQ 6,855,379 105.40
FTFC First Federal Capital Corp. WI 1,382,069 94,672 89,135 0.92 0.68 13.46 9.91 11/02/89 NASDAQ 6,297,735 125.95
FFHC First Financial Corp. WI 5,579,294 407,905 388,953 1.31 1.26 18.55 17.93 12/24/80 NASDAQ 29,905,406 672.87
FNGB First Northern Capital Corp. WI 580,128 70,754 70,754 0.78 0.75 6.12 5.85 12/29/83 NASDAQ 4,394,725 67.02
HALL Hallmark Capital Corp. WI 377,157 27,011 27,011 0.60 0.57 7.17 6.80 01/03/94 NASDAQ 1,413,280 21.20
MWFD Midwest Federal Financial WI 178,249 16,664 15,901 1.20 0.96 12.27 9.86 07/08/92 NASDAQ 1,632,880 18.78
NWEQ Northwest Equity Corp. WI 91,804 11,720 11,720 1.00 0.95 6.91 6.54 10/11/94 NASDAQ 945,392 9.81
OSBF OSB Financial Corp. WI 250,003 31,400 31,400 0.21 0.36 1.63 2.85 07/01/92 NASDAQ 1,110,984 26.11
RELI Reliance Bancshares, Inc. WI 32,260 9,616 NA 1.23 1.25 4.32 4.39 04/19/96 NASDAQ NA NA
SECP Security Capital Corporation WI 3,437,317 559,048 559,048 0.99 1.04 5.85 6.13 01/03/94 NASDAQ 9,314,365 554.20
STFR St. Francis Capital Corp. WI 1,329,903 130,656 124,711 1.18 0.87 10.78 7.95 06/21/93 NASDAQ 5,586,837 139.67
FOBC Fed One Bancorp WV 343,028 41,188 39,077 1.00 1.00 7.93 7.92 01/19/95 NASDAQ 2,558,191 38.37
CRZY Crazy Woman Creek Bancorp WY 50,324 15,453 15,453 NA NA NA NA 03/29/96 NASDAQ 1,058,000 10.71
TRIC Tri-County Bancorp, Inc. WY 73,436 13,094 13,094 0.94 0.91 4.69 4.53 09/30/93 NASDAQ 630,788 11.67
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY CAPITAL ISSUES
-------------------------- ------------------------ -----------------------------------
Mkt.
Number Value
Total Total Total Core Core of of
Assets Equity Tang. Eq. ROAA ROAA ROAE ROAE IPO Shares Shares
St ($000) ($000) ($000) (%) (%) (%) (%) Date Exchg Outstg. ($M)
-- ------ ------ --------- ---- ---- ---- ---- ---- ----- ------- ------
ALL THRIFTS
AVERAGE 1,299,878 102,311 95,313 0.87 0.80 8.14 7.28 5,912,982 126.26
MEDIAN 314,566 36,158 36,053 0.89 0.83 7.45 6.79 2,485,126 38.22
HIGH 49,506,630 2,834,725 2,637,334 2.05 2.36 29.45 29.34 137,392,481 3,280.25
LOW 27,596 3,410 3,410 -1.74 -1.75 -30.56 -30.67 229,588 2.76
AVERAGE FOR STATE
IL 700,962 72,857 70,932 0.74 0.69 6.30 5.78 4,069,036 78.27
AVERAGE BY REGION
MIDWEST 869,172 79,117 74,423 0.92 0.86 8.05 7.38 4,725,962 102.76
NEW ENGLAND 768,552 75,957 45,418 0.82 0.66 6.53 4.53 5,551,728 103.64
MID ATLANTIC 481,728 56,887 55,239 0.93 0.90 8.13 7.79 3,886,661 63.23
SOUTHEAST 861,696 66,698 56,604 0.90 0.82 9.49 8.33 4,794,675 77.83
SOUTHWEST 693,025 79,661 78,188 0.57 0.49 5.49 4.69 6,056,337 93.10
WEST 5,454,475 340,239 330,696 0.58 0.51 6.68 5.14 16,113,094 423.95
AVERAGE BY EXCHANGE
NYSE 16,112,744 999,750 979,418 0.83 0.68 12.82 10.83 43,423,266 1,235.44
AMEX 232,533 34,583 34,630 0.78 0.69 6.02 4.50 2,611,215 30.26
OTC/NASDAQ 729,631 67,944 63,280 0.88 0.82 8.04 7.27 4,375,764 80.72
KELLER & COMPANY
Columbus, Ohio
614-766-1426
EXHIBIT 32
RECENTLY CONVERTED, SAIF-INSURED THRIFT INSTITUTIONS
PRICES AND PRICING RATIOS
PRO FORMA RATIOS CURRENT RATIOS
------------------------------- --------------------------------
Price/ Price/ Price/ Price/
Price/ Book Tang. Bk. Price/ Price/ Book Tang. Bk.Price/
IPO Earnings Value Value Assets Earnings Value Value Assets
Date (X) (%) (%) (%) (X) (%) (%) (%)
--------------------------------- -------- ------------------------ --------
FFBA First Colorado Bancorp, Inc. CO 01/02/96 NA NA NA NA 13.64 116.58 117.94 19.03
LFBI Little Falls Bancorp, Inc. NJ 01/05/96 31.90 71.40 71.43 13.40 17.08 71.18 77.18 11.05
BYFC Broadway Financial Corp. CA 01/09/96 13.30 68.50 68.48 8.00 NA 67.89 67.89 7.75
FFOH Fidelity Financial of Ohio OH 03/04/96 NA NA NA NA 15.82 80.74 80.74 16.42
FFFD North Central Bancshares, Inc. IA 03/21/96 NA NA NA NA 11.18 83.63 83.63 24.00
GAF GA Financial, Inc. PA 03/26/96 13.80 70.50 70.52 15.70 11.06 79.70 79.70 18.20
CFTP Community Federal Bancorp MS 03/26/96 14.00 71.40 71.35 22.20 16.25 90.47 90.47 29.84
PFFB PFF Bancorp, Inc. CA 03/29/96 26.60 69.00 68.99 9.50 21.63 76.84 77.75 10.40
CRZY Crazy Woman Creek Bancorp WY 03/29/96 16.40 69.70 69.72 22.00 18.08 69.30 69.30 21.28
SSM Stone Street Bancorp, Inc. NC 04/01/96 19.70 74.90 74.92 24.40 NA NA NA NA
JXVL Jacksonville Bancorp, Inc. TX 04/01/96 NA NA NA NA NA NA NA NA
WHGB WHG Bancshares Corp. MD 04/01/96 15.50 71.10 71.08 16.00 NA NA NA NA
PHFC Pittsburgh Home Financial Corp PA 04/01/96 17.50 72.80 72.83 12.20 NA 75.38 75.38 12.45
LONF London Financial Corporation OH 04/01/96 22.40 68.50 68.46 13.40 NA NA NA NA
SSB Scotland Bancorp, Inc NC 04/01/96 16.20 74.80 74.83 24.20 NA 90.28 90.28 31.65
AMFC AMB Financial Corp. IN 04/01/96 18.20 70.80 70.83 14.00 NA NA NA NA
FBER 1st Bergen Bancorp NJ 04/01/96 21.70 74.80 74.81 12.50 NA 72.24 72.24 12.43
FFDF FFD Financial Corp. OH 04/03/96 17.40 69.90 69.87 19.80 NA NA NA NA
GSFC Green Street Financial Corp. NC 04/04/96 14.80 71.00 71.03 22.20 NA 87.33 87.33 30.62
YFCB Yonkers Financial Corporation NY 04/18/96 16.10 74.90 74.93 14.60 NA 76.02 76.02 15.35
RELI Reliance Bancshares, Inc. WI 04/19/96 22.50 72.50 72.47 38.90 NA NA NA NA
CBK Citizens First Financial Corp. IL 05/01/96 15.30 73.10 73.10 11.00 NA NA NA NA
FFBH First Federal Bancshares of AR AR 05/03/96 9.80 63.40 63.39 10.20 NA NA NA NA
LXMO Lexington B&L Financial Corp. MO 06/06/96 14.40 69.10 69.10 20.20 NA NA NA NA
WWFC Westwood Financial Corporation NJ 06/07/96 NA NA NA NA NA NA NA NA
CNSB CNS Bancorp, Inc. MO 06/12/96 26.10 69.30 69.35 16.20 NA NA NA NA
CMSB Commonwealth Bancorp, Inc. PA 06/17/96 NA NA NA NA NA NA NA NA
WYNE Wayne Bancorp, Inc. NJ 06/27/96 16.70 60.90 60.94 9.70 NA NA NA NA
PRBC Prestige Bancorp, Inc. PA 06/27/96 24.60 61.90 61.90 9.50 NA 66.20 66.20 9.85
PROV Provident Financial Holdings CA 06/28/96 18.20 60.90 60.87 8.20 NA NA NA NA
FLKY First Lancaster Bancshares KY 07/01/96 19.00 72.50 72.51 21.30 NA NA NA NA
EGLB Eagle BancGroup, Inc. IL 07/01/96 58.10 57.10 57.11 7.90 NA NA NA NA
HWEN Home Financial Bancorp IN 07/02/96 12.40 66.20 66.23 13.10 NA NA NA NA
OCFC Ocean Financial Corp. NJ 07/03/96 13.80 69.20 69.21 13.90 NA NA NA NA
MBSP Mitchell Bancorp, Inc. NC 07/12/96 94.50 68.10 68.13 25.80 NA NA NA NA
PWBK Pennwood Savings Bank PA 07/15/96 13.30 65.80 65.76 12.80 NA NA NA NA
ANA Acadiana Bancshares, Inc. LA 07/16/96 NA 69.90 69.92 12.70 NA NA NA NA
RECENTLY CONVERTED, SAIF-INSURED THRIFT INSTITUTIONS
PRICES AND PRICING RATIOS
PRICES AND TREND FROM IPO DATE
------------------------------------------------------
1 Day 1 Week 1 Mo.
IPO After After After
IPO Price IPO % IPO % IPO %
Date ($) ($) Change ($) Change ($) Change
----------------------------------------------------------------
FFBA First Colorado Bancorp, Inc. CO 01/02/96 NA 11.44 NA 11.63 NA 12.00 NA
LFBI Little Falls Bancorp, Inc. NJ 01/05/96 10.00 11.31 13.13 11.38 13.75 11.00 10.00
BYFC Broadway Financial Corp. CA 01/09/96 10.00 10.38 3.75 10.25 2.50 10.25 2.50
FFOH Fidelity Financial of Ohio OH 03/04/96 NA 10.50 NA 10.00 NA 10.13 NA
FFFD North Central Bancshares, Inc. IA 03/21/96 NA 10.88 NA 10.69 NA 10.44 NA
GAF GA Financial, Inc. PA 03/26/96 10.00 11.38 13.75 11.50 15.00 11.00 10.00
CFTP Community Federal Bancorp MS 03/26/96 10.00 12.63 26.25 12.88 28.75 12.63 26.25
PFFB PFF Bancorp, Inc. CA 03/29/96 10.00 11.38 13.75 11.63 16.25 11.63 16.25
CRZY Crazy Woman Creek Bancorp WY 03/29/96 10.00 NA NA 10.75 7.50 10.50 5.00
SSM Stone Street Bancorp, Inc. NC 04/01/96 15.00 17.50 16.67 18.00 20.00 17.75 18.33
JXVL Jacksonville Bancorp, Inc. TX 04/01/96 NA 11.11 NA 9.63 NA 9.88 NA
WHGB WHG Bancshares Corp. MD 04/01/96 10.00 11.13 11.25 11.06 10.60 11.25 12.50
PHFC Pittsburgh Home Financial Corp PA 04/01/96 10.00 11.00 10.00 11.00 10.00 10.63 6.25
LONF London Financial Corporation OH 04/01/96 10.00 10.81 8.12 10.63 6.25 10.13 1.25
SSB Scotland Bancorp, Inc NC 04/01/96 10.00 12.25 22.50 12.50 25.00 11.75 17.50
AMFC AMB Financial Corp. IN 04/01/96 10.00 10.50 5.00 10.50 5.00 10.50 5.00
FBER 1st Bergen Bancorp NJ 04/01/96 10.00 10.00 0.00 9.50 (5.00) 9.63 (3.75)
FFDF FFD Financial Corp. OH 04/03/96 10.00 10.50 5.00 10.50 5.00 10.31 3.10
GSFC Green Street Financial Corp. NC 04/04/96 10.00 12.88 28.75 12.25 22.50 12.31 23.10
YFCB Yonkers Financial Corporation NY 04/18/96 10.00 9.75 (2.50) 10.13 1.25 9.94 (0.60)
RELI Reliance Bancshares, Inc. WI 04/19/96 8.00 8.38 4.69 8.25 3.13 7.94 (0.75)
CBK Citizens First Financial Corp. IL 05/01/96 10.00 10.50 5.00 10.00 0.00 10.13 1.25
FFBH First Federal Bancshares of AR AR 05/03/96 10.00 13.00 30.00 13.25 32.50 13.69 36.90
LXMO Lexington B&L Financial Corp. MO 06/06/96 10.00 9.50 (5.00) 9.75 (2.50) 10.13 1.25
WWFC Westwood Financial Corporation NJ 06/07/96 NA 10.75 NA 10.38 NA 10.63 NA
CNSB CNS Bancorp, Inc. MO 06/12/96 10.00 11.00 10.00 11.63 16.25 11.50 15.00
CMSB Commonwealth Bancorp, Inc. PA 06/17/96 NA 10.50 NA 10.75 NA 10.00 NA
WYNE Wayne Bancorp, Inc. NJ 06/27/96 10.00 11.13 11.25 11.38 13.75 11.25 12.50
PRBC Prestige Bancorp, Inc. PA 06/27/96 10.00 10.38 3.75 10.25 2.50 9.75 (2.50)
PROV Provident Financial Holdings CA 06/28/96 10.00 10.97 9.70 10.81 8.10 10.13 1.25
FLKY First Lancaster Bancshares KY 07/01/96 10.00 13.50 35.00 13.38 33.75 13.75 37.50
EGLB Eagle BancGroup, Inc. IL 07/01/96 10.00 11.25 12.50 11.25 12.50 11.13 11.25
HWEN Home Financial Bancorp IN 07/02/96 10.00 10.25 2.50 9.88 (1.25) 10.50 5.00
OCFC Ocean Financial Corp. NJ 07/03/96 20.00 21.25 6.25 20.13 0.63 21.00 5.00
MBSP Mitchell Bancorp, Inc. NC 07/12/96 10.00 NA NA 10.63 6.25 10.88 8.75
PWBK Pennwood Savings Bank PA 07/15/96 10.00 9.50 (5.00) 9.13 (8.75) NA NA
ANA Acadiana Bancshares, Inc. LA 07/16/96 12.00 12.00 0.00 11.75 (2.08) NA NA
Page 1
EXHIBIT 33
KELLER & COMPANY
Columbus, Ohio
614-766-1426
RECENT THRIFT ACQUISITIONS AND PENDING ACQUISITIONS
COUNTY, CITY OR MARKET AREA OF PREFERRED SAVINGS BANK
1. Target institution:
Name Barrington Bancorp
City and state Barrington, IL
Asset size $69,700,000
Acquiring institution:
Name First Chicago NBD
City and state Chicago, IL
Asset size $115,500,000,000
Transaction:
Purchase price $17,100,000
Price/earnings (x) 61.00
Price/book value (%) 148.6
Date completed 06/06/96
2. Target institution:
Name N.S. Bancorp
City and state Chicago, IL
Asset size $1,160,200,000
Acquiring institution:
Name MAF Bancorp
City and state Clarendon Hills, IL
Asset size $1,870,000,000
Transaction:
Purchase price $267,000,000
Price/earnings (x) 12.50
Price/book value (%) 107.00
Date completed 05/30/96
Page 2
KELLER & COMPANY
Columbus, Ohio
614-766-1426
RECENT THRIFT ACQUISITIONS AND PENDING ACQUISITIONS
COUNTY, CITY OR MARKET AREA OF PREFERRED SAVINGS BANK
3. Target institution:
Name DeerBank Corp.
City and state Chicago, IL
Asset size $757,800,000
Acquiring institution:
Name NBD
City and state Detroit, MI
Asset size $48,500,000,000
Transaction:
Purchase price $106,000,000
Price/earnings (x) 14.20
Price/book value (%) 186.00
Date completed 07/01/95
4. Target institution:
Name Financial Security Corp
City and state Chicago, IL
Asset size $277,100,000
Acquiring institution:
Name Pinnacle Banc Group, Inc.
City and state Oak Brook, IL
Asset size $807,500,000
Transaction:
Purchase price $45,300,000
Price/earnings (x) 21.10
Price/book value (%) 110.00
Date announced 04/22/96
EXHIBIT 34
KELLER & COMPANY
Columbus, Ohio
614-766-1426
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED MUTUAL HOLDING COMPANIES
AS OF AUGUST 9, 1996
PER SHARE
---------------------------------------------------------------------
Latest All Time All TimeMonthly Quarterly Book 12 Month
Price High Low Change Change Value Assets Div.
State Exchange ($) ($) ($) (%) (%) ($) ($) ($)
----- -------- ---------------- ---------------- -------- ---------------- --------
PFSL Pocahontas FS&LA, MHC AR NASDAQ 14.250 17.250 9.500 -3.39 -5.00 13.64 229.43 0.67
CMSV Community Savings, MHC FL NASDAQ 16.000 18.250 10.000 0.00 7.56 15.35 129.91 0.65
FFFL Fidelity FSB of Florida, MHC FL NASDAQ 12.250 17.000 9.091 -6.67 -10.91 12.18 117.84 0.57
HARB Harbor Federal Savings Bk, MH FL NASDAQ 24.500 29.250 11.875 0.00 -12.50 17.24 205.56 1.05
FFSX First Fed SB of Siouxland, MH IA NASDAQ 24.500 28.625 9.063 1.03 -1.01 21.59 259.86 0.72
WCFB Webster City Federal SB, MHC IA NASDAQ 12.500 13.500 8.813 -1.96 -5.66 10.38 46.38 0.65
JXSB Jacksonville Savings Bank, MH IL NASDAQ 13.250 14.250 10.000 1.92 0.00 13.31 112.43 0.40
LFED Leeds Federal Savings Bk, MHC MD NASDAQ 13.000 16.750 9.875 -5.87 -3.70 12.65 77.34 0.63
GFED Guaranty Federal SB, MHC MO NASDAQ 10.500 12.500 8.000 -6.67 -8.70 8.69 59.37 NA
PULB Pulaski Bank, Savings Bk, MHC MO NASDAQ 13.000 16.500 10.500 -7.14 -16.13 10.82 85.68 0.80
FSLA First Savings Bank, MHC NJ NASDAQ 15.750 17.500 5.579 -0.79 1.61 13.98 147.33 0.37
FSNJ First Savings Bk of NJ, MHC NJ NASDAQ 14.063 19.500 10.750 -3.84 1.35 16.17 212.89 0.50
SBFL SB of the Finger Lakes, MHC NY NASDAQ 16.250 17.000 8.125 -1.52 -1.52 11.31 110.61 NA
WAYN Wayne Savings & Loan Co. MHC OH NASDAQ 19.750 22.000 11.255 -1.25 -1.25 15.31 166.54 1.05
GDVS Greater Delaware Valley SB,MH PA NASDAQ 9.500 13.000 9.250 -5.00 -10.59 8.86 72.08 0.27
HARS Harris Savings Bank, MHC PA NASDAQ 15.250 20.500 12.750 -6.15 -1.61 13.55 137.88 0.55
NWSB Northwest Savings Bank, MHC PA NASDAQ 11.125 13.500 7.375 -2.20 -8.25 8.28 80.32 0.30
RVSB Riverview Savings Bank, MHC WA NASDAQ 15.000 17.000 9.711 4.35 -11.76 10.71 97.21 0.19
ALL MUTUAL HOLDING COMPANIES
AVERAGE 15.024 17.993 9.528 -2.51 -4.89 13.00 130.48 0.59
MEDIAN 14.157 17.000 9.606 -2.08 -4.35 12.98 115.13 0.60
HIGH 24.500 29.250 12.750 4.35 7.56 21.59 259.86 1.05
LOW 9.500 12.500 5.579 -7.14 -16.13 8.28 46.38 0.19
THRIFT STOCK PRICES AND PRICING RATIOS
PUBLICLY-TRADED, SAIF INSURED MUTUAL HOLDING COMPANIES
AS OF AUGUST 9, 1996
PRICING RATIOS
--------------------------------------
Price/ Price/ Price/ Price/Core
Earnings Bk. Value Assets Earnings
State Exchange (X) (%) (%) (X)
----- -------- -------- -------- -------- --------
PFSL Pocahontas FS&LA, MHC AR NASDAQ 11.78 104.47 6.21 11.49
CMSV Community Savings, MHC FL NASDAQ 16.00 104.23 12.32 18.60
FFFL Fidelity FSB of Florida, MHC FL NASDAQ 16.78 100.57 10.40 18.01
HARB Harbor Federal Savings Bk, MH FL NASDAQ 11.14 142.11 11.92 11.14
FFSX First Fed SB of Siouxland, MH IA NASDAQ 13.69 113.48 9.43 14.67
WCFB Webster City Federal SB, MHC IA NASDAQ 23.15 120.42 26.95 24.04
JXSB Jacksonville Savings Bank, MH IL NASDAQ 25.00 99.55 11.79 30.81
LFED Leeds Federal Savings Bk, MHC MD NASDAQ 16.25 102.77 16.81 16.05
GFED Guaranty Federal SB, MHC MO NASDAQ NA 120.83 17.69 NA
PULB Pulaski Bank, Savings Bk, MHC MO NASDAQ 17.81 120.15 15.17 20.97
FSLA First Savings Bank, MHC NJ NASDAQ 13.02 112.66 10.69 13.82
FSNJ First Savings Bk of NJ, MHC NJ NASDAQ 66.97 86.97 6.61 20.09
SBFL SB of the Finger Lakes, MHC NY NASDAQ NA 143.68 14.69 NA
WAYN Wayne Savings & Loan Co. MHC OH NASDAQ 20.57 129.00 11.86 21.94
GDVS Greater Delaware Valley SB,MH PA NASDAQ 27.14 107.22 13.18 27.14
HARS Harris Savings Bank, MHC PA NASDAQ 20.07 112.55 11.06 21.79
NWSB Northwest Savings Bank, MHC PA NASDAQ 14.45 134.36 13.85 13.91
RVSB Riverview Savings Bank, MHC WA NASDAQ 12.30 140.06 15.43 13.64
ALL MUTUAL HOLDING COMPANIES
AVERAGE 20.38 116.39 13.11 18.63
MEDIAN 16.52 113.07 12.12 18.31
HIGH 66.97 143.68 26.95 30.81
LOW 11.14 86.97 6.21 11.14
EXHIBIT 35
KELLER & COMPANY
Columbus, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED MUTUAL HOLDING COMPANIES
AS OF AUGUST 9, 1996
ASSETS AND EQUITY PROFITABILITY
------------------------------------ -------------------------------
Total Total Total Core Core
Assets Equity Tang. Equity ROAA ROAA ROAE ROAE
State ($000) ($000) ($000) (%) (%) (%) (%)
----- --------------------------------------- -------------------------------
PFSL Pocahontas FS&LA, MHC AR 369,379 21,964 21,964 0.56 0.58 9.45 9.70
CMSV Community Savings, MHC FL 632,507 74,750 74,750 0.84 0.72 6.62 5.67
FFFL Fidelity FSB of Florida, MHC FL 791,897 81,076 80,095 0.65 0.60 6.23 5.83
HARB Harbor Federal Savings Bk, MH FL 1,014,013 85,062 81,880 1.18 1.18 13.57 13.56
FFSX First Fed SB of Siouxland, MH IA 443,632 36,857 36,502 0.70 0.65 8.44 7.86
WCFB Webster City Federal SB, MHC IA 97,391 21,805 21,805 1.16 1.12 5.24 5.05
JXSB Jacksonville Savings Bank, MH IL 143,044 16,931 16,930 0.48 0.39 4.16 3.41
LFED Leeds Federal Savings Bk, MHC MD 266,658 43,610 43,610 1.03 1.04 6.32 6.37
GFED Guaranty Federal SB, MHC MO 185,546 27,165 27,165 1.02 0.56 7.11 3.92
PULB Pulaski Bank, Savings Bk, MHC MO 179,406 22,651 22,651 0.84 0.71 6.94 5.89
FSLA First Savings Bank, MHC NJ 959,356 91,060 79,028 0.87 0.82 9.48 8.97
FSNJ First Savings Bk of NJ, MHC NJ 651,945 49,519 49,519 0.11 0.36 1.20 4.01
SBFL SB of the Finger Lakes, MHC NY 197,438 20,189 20,189 NA NA NA NA
WAYN Wayne Savings & Loan Co. MHC OH 248,503 22,852 22,852 0.58 0.55 6.32 5.96
GDVS Greater Delaware Valley SB,MH PA 235,877 28,982 28,982 0.48 0.48 3.98 3.98
HARS Harris Savings Bank, MHC PA 1,546,469 151,930 128,025 0.66 0.61 5.64 5.22
NWSB Northwest Savings Bank, MHC PA 1,877,529 190,651 181,003 1.01 1.05 9.47 9.83
RVSB Riverview Savings Bank, MHC WA 209,506 23,086 20,430 1.31 1.18 12.02 10.85
ALL MUTUAL HOLDING COMPANIES
AVERAGE 558,339 56,119 53,188 0.79 0.74 7.19 6.83
MEDIAN 318,019 32,920 32,742 0.84 0.65 6.62 5.89
HIGH 1,877,529 190,651 181,003 1.31 1.18 13.57 13.56
LOW 97,391 16,931 16,930 0.11 0.36 1.20 3.41
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED, SAIF INSURED MUTUAL HOLDING COMPANIES
AS OF AUGUST 9, 1996
CAPITAL ISSUES
---------------------------------------------
Number of Mkt. Value
IPO Shares of Shares
State Date Exchange Outstg. ($M)
----- ----------------------------------------------
PFSL Pocahontas FS&LA, MHC AR 04/05/94 NASDAQ 1,610,000 25.36
CMSV Community Savings, MHC FL 10/24/94 NASDAQ 4,868,732 75.47
FFFL Fidelity FSB of Florida, MHC FL 01/07/94 NASDAQ 6,720,252 89.04
HARB Harbor Federal Savings Bk, MH FL 01/06/94 NASDAQ 4,932,854 124.55
FFSX First Fed SB of Siouxland, MH IA 07/13/92 NASDAQ 1,707,209 42.25
WCFB Webster City Federal SB, MHC IA 08/15/94 NASDAQ 2,100,000 27.30
JXSB Jacksonville Savings Bank, MH IL 04/21/95 NASDAQ 1,272,300 16.54
LFED Leeds Federal Savings Bk, MHC MD 05/02/94 NASDAQ 3,448,000 51.72
GFED Guaranty Federal SB, MHC MO 04/10/95 NASDAQ 3,125,000 36.72
PULB Pulaski Bank, Savings Bk, MHC MO 05/11/94 NASDAQ 2,094,000 31.67
FSLA First Savings Bank, MHC NJ 07/10/92 NASDAQ 6,511,756 100.93
FSNJ First Savings Bk of NJ, MHC NJ 01/09/95 NASDAQ 3,062,321 46.70
SBFL SB of the Finger Lakes, MHC NY 11/11/94 NASDAQ 1,785,000 28.56
WAYN Wayne Savings & Loan Co. MHC OH 06/25/93 NASDAQ 1,492,149 30.55
GDVS Greater Delaware Valley SB,MH PA 03/03/95 NASDAQ 3,272,500 35.18
HARS Harris Savings Bank, MHC PA 01/25/94 NASDAQ 11,216,400 182.27
NWSB Northwest Savings Bank, MHC PA 11/07/94 NASDAQ 23,376,000 262.98
RVSB Riverview Savings Bank, MHC WA 10/26/93 NASDAQ 2,155,206 35.56
ALL MUTUAL HOLDING COMPANIES
AVERAGE 4,708,316 69.08
MEDIAN 3,093,661 39.49
HIGH 23,376,000 262.98
LOW 1,272,300 16.54
EXHIBIT 36
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PREFERRED SAVINGS BANK
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
General Parameters:
Less Than = #
States: IA IL IN KY MO OH WI
IPO Date: # = 03/31/95
Asset size: # = $350,000 Total
Cash & 1-4 Fam. Total Net Net Loans Borrowed
Total Invest./ MBS/ Loans/ Loans/ & MBS/ Funds/ Equity/
Assets Assets Assets Assets Assets Assets Assets Assets
IPO Date ($000) (%) (%) (%) (%) (%) (%) (%)
-----------------------------------------------------------------------------------------
PREFERRED SAVINGS BANK -- 54,853 25.84 7.08 47.08 65.09 72.17 0.00 21.93
DEFINED PARAMETERS FOR Prior to 5.00 - 35.00 - 40.00 - 45.00 - 8.00-
INCLUSION IN COMPARABLE GROUP 03/31/95 #350,000 50.00 #20.00 75.00 85.00 95.00 #25.00 30.00
HBBI Home Building Bancorp IN 02/08/95 43,135 20.88 10.94 50.17 65.42 76.35 9.95 13.94
CKFB CKF Bancorp, Inc. KY 01/04/95 58,763 11.76 0.02 68.59 86.58 86.59 0.47 27.29
GWBC Gateway Bancorp, Inc. KY 01/18/95 71,260 33.13 41.47 22.74 24.17 65.64 0.00 24.86
HHFC Harvest Home Financial Corp. OH 10/10/94 73,005 NA NA 48.14 54.74 NA 0.00 17.71
ATSB AmTrust Capital Corp. IN 03/28/95 73,072 19.57 6.38 40.49 68.35 74.73 19.16 10.34
HZFS Horizon Financial Svcs Corp. IA 06/30/94 73,464 30.05 0.00 43.29 66.84 66.84 13.15 11.42
SOBI Sobieski Bancorp, Inc. IN 03/31/95 76,362 11.72 20.72 56.33 64.03 84.75 0.00 18.49
SFFC StateFed Financial Corporation IA 01/05/94 76,705 13.17 0.00 52.67 81.75 81.75 19.56 19.46
PCBC Perry County Financial Corp. MO 02/13/95 78,480 NA NA 11.20 12.27 NA 0.00 20.05
GFSB GFS Bancorp, Inc. IA 01/06/94 83,305 8.02 4.12 55.32 86.16 90.28 23.19 11.94
CIBI Community Investors Bancorp OH 02/07/95 85,785 26.17 2.90 59.73 74.02 76.92 2.28 13.84
FFBI First Financial Bancorp, Inc. IL 10/04/93 88,615 16.80 8.87 59.14 72.00 80.87 11.28 8.88
NWEQ Northwest Equity Corp. WI 10/11/94 91,804 7.52 8.66 53.69 80.09 88.75 21.52 12.77
INCB Indiana Community Bank, SB IN 12/15/94 94,476 15.10 3.49 41.74 78.20 81.68 0.00 14.98
PTRS Potters Financial Corp. OH 12/31/93 113,862 28.33 24.74 32.79 43.98 68.71 1.28 9.73
MIFC Mid-Iowa Financial Corp. IA 10/14/92 115,260 19.74 25.74 39.47 52.80 78.54 20.82 9.38
NBSI North Bancshares, Inc. IL 12/21/93 119,436 34.86 6.94 45.48 55.50 62.43 18.21 15.50
MWBI Midwest Bancshares, Inc. IA 11/12/92 138,628 16.11 23.61 44.47 57.32 80.93 20.20 6.67
FFWD Wood Bancorp, Inc. OH 08/31/93 139,718 18.62 3.79 62.62 76.02 79.80 2.41 14.60
FBSI First Bancshares, Inc. MO 12/22/93 140,471 14.60 0.78 65.44 82.04 82.82 9.65 16.92
FFWC FFW Corp. IN 04/05/93 148,892 17.60 12.99 44.56 67.24 80.23 26.39 10.80
SMBC Southern Missouri Bancorp, Inc MO 04/13/94 161,992 21.97 19.23 40.31 56.48 75.71 7.13 16.40
LSBI LSB Financial Corp. IN 02/03/95 162,520 7.40 2.66 54.52 86.59 89.25 19.53 10.66
MARN Marion Capital Holdings IN 03/18/93 177,767 12.67 0.02 47.76 80.54 80.56 3.51 23.35
FFBZ First Federal Bancorp, Inc. OH 07/13/92 177,778 7.30 0.96 55.98 87.69 88.65 17.74 7.89
MWFD Midwest Federal Financial WI 07/08/92 178,249 18.42 6.19 33.37 70.95 77.13 7.29 9.35
MFFC Milton Federal Financial Corp. OH 10/07/94 178,289 23.80 10.57 53.84 63.08 73.65 9.00 18.93
MBLF MBLA Financial Corp. MO 06/24/93 195,074 10.77 34.89 48.90 53.50 88.38 40.06 14.54
CBCO CB Bancorp, Inc. IN 12/28/92 195,658 49.51 4.78 38.49 46.18 50.96 22.53 9.87
SBCN Suburban Bancorporation, Inc. OH 09/30/93 197,137 6.99 15.29 55.19 75.47 90.76 21.65 13.01
CAPS Capital Savings Bancorp, Inc. MO 12/29/93 202,554 6.76 13.94 68.57 77.52 91.47 13.82 10.43
EFBI Enterprise Federal Bancorp OH 10/17/94 203,431 20.61 15.71 47.06 64.07 79.77 14.75 15.47
OHSL OHSL Financial Corp. OH 02/10/93 209,037 20.05 6.91 48.56 71.45 78.36 8.12 12.20
MFBC MFB Corp. IN 03/25/94 210,559 NA NA 60.71 65.90 NA 8.31 17.90
FFHS First Franklin Corporation OH 01/26/88 216,508 11.23 19.40 53.54 67.30 86.69 3.34 9.37
OSBF OSB Financial Corp. WI 07/01/92 250,003 30.09 0.06 49.66 67.63 67.69 20.89 12.56
FCBF FCB Financial Corp. WI 09/24/93 255,660 11.26 4.05 51.90 82.16 86.21 20.30 18.46
FBCV 1ST Bancorp IN 04/07/87 263,483 30.87 1.04 66.22 64.27 65.31 38.29 8.25
GFCO Glenway Financial Corp. OH 11/30/90 273,890 NA NA 64.98 78.39 NA 7.14 9.67
PFDC Peoples Bancorp IN 07/07/87 277,958 18.83 0.24 71.47 79.56 79.80 0.00 15.58
SMFC Sho-Me Financial Corp. MO 07/01/94 280,027 7.43 3.03 62.52 86.68 89.71 27.79 10.99
FFED Fidelity Federal Bancorp IN 08/31/87 280,138 4.64 4.44 46.94 86.02 90.46 25.12 5.08
WFCO Winton Financial Corp. OH 08/04/88 282,833 NA NA 43.03 84.63 NA 15.69 7.45
WCBI Westco Bancorp IL 06/26/92 312,158 29.73 0.00 55.72 68.87 68.87 0.00 15.45
HBFW Home Bancorp IN 03/30/95 315,901 22.44 0.00 69.88 75.91 75.91 0.00 15.50
PVFC PVF Capital Corp. OH 12/30/92 318,100 6.13 2.67 30.75 89.68 92.35 6.38 6.70
WOFC Western Ohio Financial Corp. OH 07/29/94 319,558 23.45 13.06 44.68 60.80 73.86 21.19 18.20
HVFD Haverfield Corporation OH 03/19/85 334,226 11.16 0.65 68.76 85.49 86.15 2.39 8.50
HMCI HomeCorp, Inc. IL 06/22/90 338,985 9.14 6.48 44.15 78.12 84.60 0.00 6.23
CASH First Midwest Financial, Inc. IA 09/20/93 342,095 NA NA 22.17 65.12 NA 27.85 11.41
EXHIBIT 37
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PREFERRED SAVINGS BANK
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY PARAMETERS
Most Recent Four Quarters
General Parameters:
Less Than = #
Greater Than = @
States: IA IL IN KY MO OH WI
IPO Date: #= 03/31/95
Asset size: #= $350,000
OPERATING PERFORMANCE ASSET QUALITY*
----------------------------------------------- --------------------
Net Operating Noninterest
Total Interest Expenses/ Income/ NPA/ REO/ Reserves/
Assets ROAA ROAE Margin** Assets Assets Assets Assets Assets
IPO Date ($000) (%) (%) (%) (%) (%) (%) (%) (%)
----------------------------------------------------------------- -----------------------
PREFERRED SAVINGS BANK -- 54,853 1.95 8.64 5.10 1.87 0.11 1.09 0.00 0.34
DEFINED PARAMETERS FOR Prior to 1.00 - 4.00 - 2.75 - 1.50 -
INCLUSION IN COMPARABLE GROUP 03/31/95 #350,000 2.00 15.00 5.25 2.75 #0.70 #1.25 #0.20 @0.15
HBBI Home Building Bancorp IN 02/08/95 43,135 0.41 2.86 3.74 2.53 0.32 0.27 0.00 0.12
CKFB CKF Bancorp, Inc. KY 01/04/95 58,763 1.24 4.39 3.90 1.97 0.07 1.70 0.00 0.18
GWBC Gateway Bancorp, Inc. KY 01/18/95 71,260 1.05 4.05 2.83 1.23 0.04 0.31 0.00 0.11
HHFC Harvest Home Financial Corp. OH 10/10/94 73,005 0.80 4.31 3.20 2.00 0.07 0.20 0.00 0.15
ATSB AmTrust Capital Corp. IN 03/28/95 73,072 0.31 2.75 2.81 2.95 0.44 1.31 0.00 0.50
HZFS Horizon Financial Svcs Corp. IA 06/30/94 73,464 0.53 4.38 3.50 2.64 0.50 NA NA NA
SOBI Sobieski Bancorp, Inc. IN 03/31/95 76,362 0.42 2.24 3.28 2.69 0.21 0.00 NA 0.26
SFFC StateFed Financial Corporation IA 01/05/94 76,705 1.19 5.99 3.69 1.71 0.07 0.53 0.00 0.31
PCBC Perry County Financial Corp. MO 02/13/95 78,480 1.00 4.86 2.75 1.21 0.03 0.04 0.00 0.01
GFSB GFS Bancorp, Inc. IA 01/06/94 83,305 1.16 9.19 3.46 1.73 0.12 0.00 0.27 NA
CIBI Community Investors Bancorp OH 02/07/95 85,785 1.01 6.98 3.60 2.06 0.17 0.73 0.11 0.50
FFBI First Financial Bancorp, Inc. IL 10/04/93 88,615 0.70 6.53 3.28 3.18 0.46 0.53 0.00 0.40
NWEQ Northwest Equity Corp. WI 10/11/94 91,804 1.00 6.91 4.11 2.68 0.42 0.92 0.16 0.47
INCB Indiana Community Bank, SB IN 12/15/94 94,476 0.67 4.39 4.35 3.72 0.84 NA 0.00 0.48
PTRS Potters Financial Corp. OH 12/31/93 113,862 0.54 5.67 3.40 2.64 0.22 2.49 0.09 1.81
MIFC Mid-Iowa Financial Corp. IA 10/14/92 115,260 0.93 10.00 2.83 2.18 0.80 0.05 0.00 0.24
NBSI North Bancshares, Inc. IL 12/21/93 119,436 0.59 3.19 3.27 2.50 0.14 0.00 0.00 0.17
MWBI Midwest Bancshares, Inc. IA 11/12/92 138,628 1.01 14.64 2.95 1.91 0.16 0.28 0.14 0.48
FFWD Wood Bancorp, Inc. OH 08/31/93 139,718 1.17 8.14 4.29 2.52 0.26 0.18 0.02 0.35
FBSI First Bancshares, Inc. MO 12/22/93 140,471 0.79 4.42 3.38 2.13 0.20 0.43 0.00 0.36
FFWC FFW Corp. IN 04/05/93 148,892 0.90 8.07 3.01 1.72 0.31 0.06 0.01 0.35
SMBC Southern Missouri Bancorp, Inc MO 04/13/94 161,992 0.87 4.98 3.02 2.08 0.31 0.97 0.42 0.38
LSBI LSB Financial Corp. IN 02/03/95 162,520 0.83 6.94 3.59 2.48 0.27 0.19 0.00 0.57
MARN Marion Capital Holdings IN 03/18/93 177,767 1.41 5.86 4.18 2.14 0.18 1.07 0.10 1.13
FFBZ First Federal Bancorp, Inc. OH 07/13/92 177,778 1.14 15.12 3.91 2.43 0.47 0.56 0.01 0.87
MWFD Midwest Federal Financial WI 07/08/92 178,249 1.20 12.27 4.06 2.98 0.81 0.26 0.00 0.76
MFFC Milton Federal Financial Corp. OH 10/07/94 178,289 1.04 4.80 3.61 2.16 0.13 0.40 0.02 0.23
MBLF MBLA Financial Corp. MO 06/24/93 195,074 0.70 4.83 1.94 0.79 0.01 0.33 0.03 0.27
CBCO CB Bancorp, Inc. IN 12/28/92 195,658 1.38 14.64 4.81 2.02 0.68 0.84 0.00 0.69
SBCN Suburban Bancorporation, Inc. OH 09/30/93 197,137 0.39 2.95 3.01 2.29 0.24 0.20 0.16 1.59
CAPS Capital Savings Bancorp, Inc. MO 12/29/93 202,554 0.95 8.96 3.42 2.13 0.37 0.20 0.03 0.30
EFBI Enterprise Federal Bancorp OH 10/17/94 203,431 1.03 5.52 2.96 1.91 0.05 0.01 0.00 0.17
OHSL OHSL Financial Corp. OH 02/10/93 209,037 0.95 7.55 3.39 2.06 0.15 0.12 0.00 0.25
MFBC MFB Corp. IN 03/25/94 210,559 0.73 3.69 3.06 1.95 0.15 NA NA 0.16
FFHS First Franklin Corporation OH 01/26/88 216,508 0.62 6.56 2.74 1.91 0.18 0.50 0.09 0.43
OSBF OSB Financial Corp. WI 07/01/92 250,003 0.21 1.63 2.85 2.15 0.26 0.22 0.00 0.40
FCBF FCB Financial Corp. WI 09/24/93 255,660 1.03 5.37 3.38 1.85 0.27 0.09 0.01 0.42
FBCV 1ST Bancorp IN 04/07/87 263,483 2.05 29.45 2.39 2.66 0.35 0.35 0.07 0.34
GFCO Glenway Financial Corp. OH 11/30/90 273,890 0.56 5.82 3.56 2.23 0.22 NA 0.12 0.23
PFDC Peoples Bancorp IN 07/07/87 277,958 1.45 9.51 3.78 1.50 0.23 0.34 0.03 0.32
SMFC Sho-Me Financial Corp. MO 07/01/94 280,027 0.85 6.89 3.23 2.13 0.35 0.06 0.02 0.62
FFED Fidelity Federal Bancorp IN 08/31/87 280,138 1.29 25.83 2.25 2.87 0.22 0.07 0.01 0.30
WFCO Winton Financial Corp. OH 08/04/88 282,833 0.94 12.39 3.35 2.22 0.13 0.44 0.18 0.31
WCBI Westco Bancorp IL 06/26/92 312,158 1.30 8.37 3.63 1.74 0.23 0.30 0.00 0.28
HBFW Home Bancorp IN 03/30/95 315,901 0.84 4.99 2.91 1.51 0.07 0.04 0.00 0.44
PVFC PVF Capital Corp. OH 12/30/92 318,100 1.13 17.86 3.82 2.47 0.37 NA NA NA
WOFC Western Ohio Financial Corp. OH 07/29/94 319,558 1.12 4.19 3.64 2.47 0.03 0.34 0.00 0.27
HVFD Haverfield Corporation OH 03/19/85 334,226 0.71 8.57 3.53 3.00 0.61 0.00 0.14 0.83
HMCI HomeCorp, Inc. IL 06/22/90 338,985 0.40 6.66 2.97 2.72 0.51 3.12 2.88 0.40
CASH First Midwest Financial, Inc. IA 09/20/93 342,095 1.06 8.14 3.50 2.07 0.39 NA 0.03 0.53
* Asset quality ratios reflect balance sheet totals at the end of the
most recent quarter for the comparable group and at May 31, 1996, for
Preferred.
** Based on average interest-earning assets.
EXHIBIT 38
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PREFERRED SAVINGS BANK
FINAL COMPARABLE GROUP
BALANCE SHEET RATIOS
Less Than = #
Total
Cash & 1-4 Fam. Total Net Net Loans Borrowed
Total Invest./ MBS/ Loans/ Loans/ & MBS/ Funds/ Equity/
Assets Assets Assets Assets Assets Assets Assets Assets
IPO Date ($000) (%) (%) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------------------
PREFERRED SAVINGS BANK -- 54,853 25.84 7.08 47.08 65.09 72.17 0.00 21.93
DEFINED PARAMETERS FOR Prior to 5.00 - 35.00 - 40.00 - 45.00 - 8.00-
INCLUSION IN COMPARABLE GROUP 03/31/95 #350,000 50.00 #20.00 75.00 85.00 95.00 #25.00 30.00
SFFC StateFed Financial Corporation IA 01/05/94 76,705 13.17 0.00 52.67 81.75 81.75 19.56 19.46
CIBI Community Investors Bancorp OH 02/07/95 85,785 26.17 2.90 59.73 74.02 76.92 2.28 13.84
NWEQ Northwest Equity Corp. WI 10/11/94 91,804 7.52 8.66 53.69 80.09 88.75 21.52 12.77
MARN Marion Capital Holdings IN 03/18/93 177,767 12.67 0.02 47.76 80.54 80.56 3.51 23.35
MFFC Milton Federal Financial Corp. OH 10/07/94 178,289 23.80 10.57 53.84 63.08 73.65 9.00 18.93
CBCO CB Bancorp, Inc. IN 12/28/92 195,658 49.51 4.78 38.49 46.18 50.96 22.53 9.87
EFBI Enterprise Federal Bancorp OH 10/17/94 203,431 20.61 15.71 47.06 64.07 79.77 14.75 15.47
FCBF FCB Financial Corp. WI 09/24/93 255,660 11.26 4.05 51.90 82.16 86.21 20.30 18.46
PFDC Peoples Bancorp IN 07/07/87 277,958 18.83 0.24 71.47 79.56 79.80 0.00 15.58
WOFC Western Ohio Financial Corp. OH 07/29/94 319,558 23.45 13.06 44.68 60.80 73.86 21.19 18.20
AVERAGE 186,262 20.70 6.00 52.13 71.23 77.22 13.46 16.59
MEDIAN 186,974 19.72 4.42 52.28 76.79 79.79 17.15 16.89
HIGH 319,558 49.51 15.71 71.47 82.16 88.75 22.53 23.35
LOW 76,705 7.52 0.00 38.49 46.18 50.96 0.00 9.87
EXHIBIT 39
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PREFERRED SAVINGS BANK
FINAL COMPARABLE GROUP
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
Less Than = #
Greater Than = @
OPERATING PERFORMANCE ASSET QUALITY*
------------------------------------------------ ------------------
Net Operating Noninterest
Total Interest Expenses/ Income/ NPA/ REO/ Reserves/
Assets ROAA ROAE Margin** Assets Assets Assets Assets Assets
IPO Date ($000) (%) (%) (%) (%) (%) (%) (%) (%)
------------------------------------------------------------- -------------------------
PREFERRED SAVINGS BANK -- 54,853 1.95 8.64 5.10 1.87 0.11 1.09 0.00 0.34
DEFINED PARAMETERS FOR Prior to 1.00- 4.00- 2.75- 1.50-
INCLUSION IN COMPARABLE GROUP 03/31/95 #350,000 2.00 15.00 5.25 2.75 #0.70 #1.25 #0.20 @0.15
SFFC StateFed Financial Corporation IA 01/05/94 76,705 1.19 5.99 3.69 1.71 0.07 0.53 0.00 0.31
CIBI Community Investors Bancorp OH 02/07/95 85,785 1.01 6.98 3.60 2.06 0.17 0.73 0.11 0.50
NWEQ Northwest Equity Corp. WI 10/11/94 91,804 1.00 6.91 4.11 2.68 0.42 0.92 0.16 0.47
MARN Marion Capital Holdings IN 03/18/93 177,767 1.41 5.86 4.18 2.14 0.18 1.07 0.10 1.13
MFFC Milton Federal Financial Corp. OH 10/07/94 178,289 1.04 4.80 3.61 2.16 0.13 0.40 0.02 0.23
CBCO CB Bancorp, Inc. IN 12/28/92 195,658 1.38 14.64 4.81 2.02 0.68 0.84 0.00 0.69
EFBI Enterprise Federal Bancorp OH 10/17/94 203,431 1.03 5.52 2.96 1.91 0.05 0.01 0.00 0.17
FCBF FCB Financial Corp. WI 09/24/93 255,660 1.03 5.37 3.38 1.85 0.27 0.09 0.01 0.42
PFDC Peoples Bancorp IN 07/07/87 277,958 1.45 9.51 3.78 1.50 0.23 0.34 0.03 0.32
WOFC Western Ohio Financial Corp. OH 07/29/94 319,558 1.12 4.19 3.64 2.47 0.03 0.34 0.00 0.27
AVERAGE 186,262 1.17 6.98 3.78 2.05 0.22 0.53 0.04 0.45
MEDIAN 186,974 1.08 5.93 3.67 2.04 0.18 0.47 0.01 0.37
HIGH 319,558 1.45 14.64 4.81 2.68 0.68 1.07 0.16 1.13
LOW 76,705 1.00 4.19 2.96 1.50 0.03 0.01 0.00 0.17
* Asset quality ratios reflect balance sheet totals at the end of the most
recent quarter for the comparable group and at May 31, 1996, for
Preferred.
** Based on average interest-earning assets.
EXHIBIT 40
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PREFERRED SAVINGS BANK
COMPARABLE GROUP CHARACTERISTICS AND BALANCE SHEET TOTALS
Number Conversion
of (IPO)
Offices Exchange Date
------- -------- ----------
SUBJECT
PREFERRED SAVINGS BANK Chicago IL 1 NA NA
COMPARABLE GROUP
CBCO CB Bancorp, Inc. Michigan City IN 3 NASDAQ 12/28/92
CIBI Community Investors Bancorp, Inc. Bucyrus OH 3 NASDAQ 02/07/95
EFBI Enterprise Federal Bancorp, Inc. Lockland OH 5 NASDAQ 10/17/94
FCBF FCB Financial Corp. Neenah WI 6 NASDAQ 09/24/93
MARN Marion Capital Holdings, Inc. Marion IN 2 NASDAQ 03/18/93
MFFC Milton Federal Financial Corporation West Milton OH 2 NASDAQ 10/07/94
NWEQ Northwest Equity Corporation Amery WI 3 NASDAQ 10/11/94
PFDC Peoples Bancorp Auburn IN 6 NASDAQ 07/07/87
SFFC StateFed Financial Corporation Des Moines IA 2 NASDAQ 01/05/94
WOFC Western Ohio Financial Corporation Springfield OH 6 NASDAQ 07/29/94
Average 3.8
Median 3.0
High 6.0
Low 2.0
RESTUBBED TABLE
Most Recent Quarter
------------------------------------------------------------------
Total Goodwill
Total Int. Earning Net and Total Total
Assets Assets Loans Intang. Deposits Equity
($000) ($000) ($000) ($000) ($000) ($000)
------------------------------------------------------------------
SUBJECT
PREFERRED SAVINGS BANK Chicago IL 54,853 52,314 35,702 0 41,945 12,029
COMPARABLE GROUP
CBCO CB Bancorp, Inc. Michigan City IN 195,658 111,000 90,355 0 128,127 19,319
CIBI Community Investors Bancorp, Inc Bucyrus OH 85,785 83,103 63,498 0 71,548 11,869
EFBI Enterprise Federal Bancorp, Inc. Lockland OH 203,431 201,684 130,334 65 139,708 31,470
FCBF FCB Financial Corp. Neenah WI 255,660 246,789 210,058 0 151,115 47,192
MARN Marion Capital Holdings, Inc. Marion IN 177,767 166,046 143,165 0 126,260 41,511
MFFC Milton Federal Financial Corporation West Milton OH 178,289 170,995 112,468 0 127,456 33,756
NWEQ Northwest Equity Corporation Amery WI 91,804 85,004 73,529 0 59,835 11,720
PFDC Peoples Bancorp Auburn IN 277,958 278,398 221,140 0 233,416 43,298
SFFC StateFed Financial Corporation Des Moines IA 76,705 71,583 62,708 0 45,732 14,928
WOFC Western Ohio Financial Corporation Springfield OH 319,558 269,204 194,287 3,387 182,038 58,161
Average 186,262 168,381 130,154 345 126,524 31,322
Median 186,974 168,521 121,401 0 127,792 32,613
High 319,558 278,398 221,140 3,387 233,416 58,161
Low 76,705 71,583 62,708 0 45,732 11,720
EXHIBIT 41
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PREFERRED SAVINGS BANK
COMPARABLE GROUP MARKET AREA COMPARISON
1990-1995 Median Median
Population Per Capita Household Housing
1995 Growth Income Income Value
Population (%) ($) ($) ($)
---------- ---------- --------- --------- --------
SUBJECT
PREFERRED SAVINGS BANK 5,144,275 0.8 17,825 36,543 102,100
COMPARABLE GROUP
CBCO CB Bancorp, Inc. IN 110,741 3.4 14,838 31,806 52,748
CIBI Community Investors Bancorp OH 47,870 0.2 16,237 32,915 56,087
EFBI Enterprise Federal Bancorp, Inc. OH 866,222 1.2 18,004 34,401 72,243
FCBF FCB Financial Corp. WI 149,333 1.2 14,280 31,756 60,162
MARN Marion Capital Holdings, Inc. IN 73,620 (0.7) 15,747 33,268 40,400
MFFC Milton Federal Financial Corporation OH 677,496 1.5 17,691 33,144 67,088
NWEQ Northwest Equity Corporation WI 37,147 6.8 12,167 25,900 53,600
PFDC Peoples Bancorp IN 173,541 3.2 17,558 37,852 58,783
SFFC StateFed Financial Corporation IA 350,024 1.3 16,864 33,804 59,700
WOFC Western Ohio Financial Corporation OH 147,906 0.2 14,727 32,325 54,900
Average 263,390 1.8 15,811 32,717 57,571
Median 148,620 1.3 15,992 33,030 57,435
High 866,222 6.8 18,004 37,852 72,243
Low 37,147 -0.7 12,167 25,900 40,400
RESTUBBED TABLE
High Below
Median School College Poverty
Rent Graduates Graduates Level
($) (%) (%) (%)
------ --------- ---------- -------
SUBJECT
PREFERRED SAVINGS BANK 478 73.4 22.8 14.2
COMPARABLE GROUP
CBCO CB Bancorp, Inc. IN 266 73.9 11.7 10.1
CIBI Community Investors Bancorp OH 309 73.8 16.8 14.1
EFBI Enterprise Federal Bancorp, Inc. OH 304 75.6 23.7 13.3
FCBF FCB Financial Corp. WI 318 80.6 18.2 8.8
MARN Marion Capital Holdings, Inc. IN 231 71.8 11.2 13.1
MFFC Milton Federal Financial Corporation OH 317 74.9 10.8 13.8
NWEQ Northwest Equity Corporation WI 254 78.0 11.4 11.8
PFDC Peoples Bancorp IN 285 80.8 18.0 7.7
SFFC StateFed Financial Corporation IA 369 85.4 23.9 9.2
WOFC Western Ohio Financial Corporation OH 256 73.4 12.2 13.4
Average 291 76.8 15.8 11.5
Median 295 75.3 14.5 12.5
High 369 85.4 23.9 14.1
Low 231 71.8 10.8 7.7
EXHIBIT 42
KELLER & COMPANY
Columbus, Ohio
614-766-1426
BALANCE SHEET
ASSET COMPOSITION - MOST RECENT QUARTER
As a Percent of Total Assets
------------------------------------------------------------
Real
Total Cash & Net Loan Loss Estate Goodwill
Assets Invest. MBS Loans Reserves Owned & Intang.
($000) (%) (%) (%) (%) (%) (%)
------------ ------------------------------------------------------------
SUBJECT
PREFERRED SAVINGS BANK * 54,853 25.84 7.08 65.09 0.34 0.00 0.00
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 195,658 49.51 4.78 46.18 0.69 0.00 0.00
CIBI Community Investors Bancorp 85,785 26.17 2.90 74.02 0.50 0.11 0.00
EFBI Enterprise Federal Bancorp 203,431 20.61 15.71 64.07 0.17 0.00 0.03
FCBF FCB Financial Corp. 255,660 11.26 4.05 82.16 0.42 0.01 0.00
MARN Marion Capital Holdings 177,767 12.67 0.02 80.54 1.13 0.10 0.00
MFFC Milton Federal Financial Corp. 178,289 23.80 10.57 63.08 0.23 0.02 0.00
NWEQ Northwest Equity Corp. 91,804 7.52 8.66 80.09 0.47 0.16 0.00
PFDC Peoples Bancorp 277,958 18.83 0.24 79.56 0.32 0.03 0.00
SFFC StateFed Financial Corporation 76,705 13.17 0.00 81.75 0.31 0.00 0.00
WOFC Western Ohio Financial Corp. 319,558 23.45 13.06 60.80 0.27 0.00 1.06
Average 186,262 20.70 6.00 71.23 0.45 0.04 0.11
Median 186,974 19.72 4.42 76.79 0.37 0.01 0.00
High 319,558 49.51 15.71 82.16 1.13 0.16 1.06
Low 76,705 7.52 0.00 46.18 0.17 0.00 0.00
ALL THRIFTS (335)
Average 2,722,386 14.97 14.02 66.68 0.63 0.63 0.32
MIDWEST THRIFTS (152)
Average 786,149 18.00 9.51 68.28 0.46 0.46 0.15
ILLINOIS THRIFTS (24)
Average 700,962 19.07 10.81 65.98 0.44 0.19 0.13
RESTUBBED TABLE
As a Percent of Total Assets
-----------------------------------------------------------------
Interest Interest Capitalized
Other High Risk Non-Perf. Earning Bearing Loan
Assets R.E. Loans Assets Assets Liabilities Servicing
(%) (%) (%) (%) (%) (%)
------------------------------------------------------------------
SUBJECT
PREFERRED SAVINGS BANK * 1.99 18.70 1.09 95.37 76.47 0.00
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 4.31 5.84 0.84 56.73 90.56 0.00
CIBI Community Investors Bancorp 1.37 6.33 0.73 96.87 84.55 0.00
EFBI Enterprise Federal Bancorp 2.10 16.98 0.01 99.14 84.33 0.00
FCBF FCB Financial Corp. 2.46 21.63 0.09 96.53 78.12 0.00
MARN Marion Capital Holdings 6.67 31.43 1.07 93.41 73.52 0.00
MFFC Milton Federal Financial Corp. 2.53 6.07 0.40 95.91 78.62 0.00
NWEQ Northwest Equity Corp. 3.57 11.24 0.92 92.59 85.11 0.00
PFDC Peoples Bancorp 1.34 4.23 0.34 100.16 84.57 0.00
SFFC StateFed Financial Corporation 3.08 27.52 0.53 93.32 77.83 0.00
WOFC Western Ohio Financial Corp. 1.61 6.67 0.34 84.24 65.78 0.00
Average 2.90 13.79 0.53 90.89 80.30 0.00
Median 2.49 8.95 0.47 94.66 81.48 0.00
High 6.67 31.43 1.07 100.16 90.56 0.00
Low 1.34 4.23 0.01 56.73 65.78 0.00
ALL THRIFTS (335)
Average 2.89 14.77 1.28 93.92 86.56 0.32
MIDWEST THRIFTS (152)
Average 2.51 12.01 0.56 94.28 82.77 0.10
ILLINOIS THRIFTS (24)
Average 2.57 11.04 0.54 94.17 81.94 0.16
* At May 31, 1996.
EXHIBIT 43
KELLER & COMPANY
Columbus, Ohio
614-766-1426
BALANCE SHEET COMPARISON
LIABILITIES AND EQUITY - MOST RECENT QUARTER
As a Percent of Assets
---------------------------------------------------------------
FASB 115
Total Total Total Total Other Preferred Common Unrealized
Liabilities Equity Deposits Borrowings Liabilities Equity Equity Gain (Loss)
($000) ($000) (%) (%) (%) (%) (%) (%)
----------------------- ---------------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK * 42,824 12,029 76.47 0.00 1.60 -- -- (0.14)
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 176,339 19,319 65.49 22.53 2.11 0.00 9.87 0.01
CIBI Community Investors Bancorp 73,916 11,869 83.40 2.28 0.48 0.00 13.84 (0.00)
EFBI Enterprise Federal Bancorp 171,961 31,470 68.68 14.75 1.11 0.00 15.47 0.09
FCBF FCB Financial Corp. 208,468 47,192 59.11 20.30 2.13 0.00 18.46 (0.01)
MARN Marion Capital Holdings 136,256 41,511 71.03 3.51 2.11 0.00 23.35 0.00
MFFC Milton Federal Financial Corp. 144,533 33,756 71.49 9.00 0.58 0.00 18.93 (0.06)
NWEQ Northwest Equity Corp. 80,084 11,720 65.18 21.52 0.54 0.00 12.77 (0.05)
PFDC Peoples Bancorp 234,660 43,298 83.98 0.00 0.44 0.00 15.58 (0.05)
SFFC StateFed Financial Corporation 61,777 14,928 59.62 19.56 1.36 0.00 19.46 (0.03)
WOFC Western Ohio Financial Corp. 261,397 58,161 56.97 21.19 3.65 0.00 18.20 0.18
Average 154,939 31,322 68.49 13.46 1.45 0.00 16.59 0.01
Median 158,247 32,613 67.08 17.15 1.23 0.00 16.89 (0.01)
High 261,397 58,161 83.98 22.53 3.65 0.00 23.35 0.18
Low 61,777 11,720 56.97 0.00 0.44 0.00 9.87 (0.06)
ALL THRIFTS (335)
Average 1,197,567 102,311 72.92 12.77 1.46 0.07 12.78 (0.02)
MIDWEST THRIFTS (152)
Average 715,751 70,398 71.94 12.71 1.22 0.02 14.11 (0.04)
ILLINOIS THRIFTS (24)
Average 628,105 72,857 73.52 11.56 1.47 0.00 13.45 (0.13)
RESTUBBED TABLE
As a Percent of Assets
--------------------------------------------------------
Reg. Reg. Reg.
Retained Total Tangible Core Tangible Risk-Based
Earnings Equity Equity Capital Capital Capital
(%) (%) (%) (%) (%) (%)
-------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK * 22.07 21.93 22.07 22.07 22.07 45.68
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 6.69 9.87 9.87 NA NA 15.35
CIBI Community Investors Bancorp 7.68 13.84 13.84 11.86 11.86 24.41
EFBI Enterprise Federal Bancorp 6.56 15.47 15.44 NA NA 26.64
FCBF FCB Financial Corp. 4.65 18.46 18.46 NA NA 25.40
MARN Marion Capital Holdings 13.41 23.35 23.35 19.66 19.66 36.23
MFFC Milton Federal Financial Corp. 8.56 18.93 18.93 14.69 14.69 33.82
NWEQ Northwest Equity Corp. 6.78 12.77 12.77 8.21 NA NA
PFDC Peoples Bancorp 8.84 15.58 15.58 13.50 13.50 28.37
SFFC StateFed Financial Corporation 8.43 19.46 19.46 13.86 13.86 24.35
WOFC Western Ohio Financial Corp. 7.63 18.20 17.32 17.70 17.70 42.08
Average 7.92 16.59 16.50 14.21 15.21 28.52
Median 7.66 16.89 16.45 13.86 14.28 26.64
High 13.41 23.35 23.35 19.66 19.66 42.08
Low 4.65 9.87 9.87 8.21 11.86 15.35
ALL THRIFTS (335)
Average 6.42 12.85 12.66 10.75 10.58 23.26
MIDWEST THRIFTS (152)
Average 7.23 14.13 13.95 11.43 11.38 24.40
ILLINOIS THRIFTS (24)
Average 7.02 13.45 13.33 10.63 9.69 21.22
* At May 31, 1996.
EXHIBIT 44
KELLER & COMPANY
Columbus, Ohio
614-766-1426
INCOME AND EXPENSE COMPARISON
TRAILING FOUR QUARTERS
($000)
Net Gain Total Goodwill Net Total
Interest Interest Interest Provision (Loss) Non-Int. & Intang Real Est. Non-Int.
Income Expense Income for Loss on Sale Income Amtz. Expense Expense
---------------------------------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK * 4,364 1,726 2,638 50 0 61 0 0 1,018
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 15,399 7,637 7,762 1,062 0 1,332 0 0 3,890
CIBI Community Investors Bancorp 6,651 3,668 2,983 149 65 148 0 54 1,749
EFBI Enterprise Federal Bancorp 14,103 8,410 5,693 30 1,052 108 30 (39) 3,740
FCBF FCB Financial Corp. 18,319 10,081 8,238 200 80 685 0 0 4,579
MARN Marion Capital Holdings 13,740 6,853 6,887 34 0 323 0 180 3,781
MFFC Milton Federal Financial Corp. 12,265 6,448 5,817 72 214 231 0 2 3,563
NWEQ Northwest Equity Corp. 6,806 3,576 3,230 24 68 386 0 (34) 2,222
PFDC Peoples Bancorp 21,680 11,264 10,416 199 14 653 0 (131) 4,180
SFFC StateFed Financial Corporation 5,785 3,194 2,591 24 0 57 0 (209) 1,266
WOFC Western Ohio Financial Corp. 15,891 8,012 7,879 86 929 96 0 0 5,568
Average 13,064 6,914 6,150 188 242 402 3 (18) 3,454
Median 13,922 7,245 6,352 79 67 277 0 0 3,761
High 21,680 11,264 10,416 1,062 1,052 1,332 30 180 5,568
Low 5,785 3,194 2,591 24 0 57 0 (209) 1,266
ALL THRIFTS (335)
Average 96,816 59,789 37,027 2,734 2,592 6,418 601 695 25,767
MIDWEST THRIFTS (152)
Average 56,678 34,371 22,307 577 548 4,418 332 (88) 15,364
ILLINOIS THRIFTS (24)
Average 46,093 27,375 18,718 454 428 3,324 44 (372) 13,849
* For the twelve months ended May 31, 1996.
RESTUBBED TABLE
Net Net Inc.
Non- Income Before
Recurring Before Income Extraord. Extraord. Net Core
Expense Taxes Taxes Items Items Income Income
------------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK * 0 1,631 625 1,006 0 1,006 1,006
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 0 4,142 1,480 2,662 0 2,662 2,662
CIBI Community Investors Bancorp 0 1,298 443 855 0 855 813
EFBI Enterprise Federal Bancorp 0 3,083 1,069 2,014 0 2,014 1,331
FCBF FCB Financial Corp. 0 4,224 1,667 2,557 0 2,557 2,505
MARN Marion Capital Holdings 0 3,395 914 2,481 0 2,481 2,481
MFFC Milton Federal Financial Corp. 0 2,627 900 1,727 0 1,727 1,588
NWEQ Northwest Equity Corp. 0 1,438 607 831 0 831 787
PFDC Peoples Bancorp 0 6,703 2,671 4,032 0 4,032 4,023
SFFC StateFed Financial Corporation 0 1,358 475 883 0 883 883
WOFC Western Ohio Financial Corp. 0 3,931 1,398 2,533 0 2,533 1,487
Average 0 3,220 1,162 2,058 0 2,058 1,856
Median 0 3,239 992 2,248 0 2,248 1,538
High 0 6,703 2,671 4,032 0 4,032 4,023
Low 0 1,298 443 831 0 831 787
ALL THRIFTS (335)
Average 652 16,938 6,308 10,630 (28) 10,602 9,334
MIDWEST THRIFTS (152)
Average 996 10,367 3,626 6,742 (8) 6,733 7,013
ILLINOIS THRIFTS (24)
Average 18 8,188 2,934 5,255 (21) 5,234 4,962
EXHIBIT 45
KELLER & COMPANY
Columbus, Ohio
614-766-1426
INCOME AND EXPENSE COMPARISON
AS A PERCENTAGE OF AVERAGE ASSETS
TRAILING FOUR QUARTERS
Net Gain Total Goodwill Net Total
Interest Interest Interest Provision (Loss) Non-Int. & Intang Real Est. Non-Int.
Income Expense Income for Loss on Sale Income Amtz. Expense Expense
(%) (%) (%) (%) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK * 8.10 3.39 4.90 0.09 0.00 0.11 0.00 0.00 1.89
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 7.99 3.96 4.03 0.55 0.00 0.69 0.00 0.00 2.02
CIBI Community Investors Bancorp 7.82 4.31 3.51 0.18 0.08 0.17 0.00 0.06 2.06
EFBI Enterprise Federal Bancorp 7.21 4.30 2.91 0.02 0.54 0.06 0.02 (0.02) 1.91
FCBF FCB Financial Corp. 7.40 4.07 3.33 0.08 0.03 0.28 0.00 0.00 1.85
MARN Marion Capital Holdings 7.78 3.88 3.90 0.02 0.00 0.18 0.00 0.10 2.14
MFFC Milton Federal Financial Corp. 7.42 3.90 3.52 0.04 0.13 0.14 0.00 0.00 2.16
NWEQ Northwest Equity Corp. 8.22 4.32 3.90 0.03 0.08 0.47 0.00 (0.04) 2.68
PFDC Peoples Bancorp 7.78 4.04 3.74 0.07 0.01 0.23 0.00 (0.05) 1.50
SFFC StateFed Financial Corporation 7.82 4.32 3.50 0.03 0.00 0.08 0.00 (0.28) 1.71
WOFC Western Ohio Financial Corp. 7.04 3.55 3.49 0.04 0.41 0.04 0.00 0.00 2.47
Average 7.65 4.07 3.58 0.11 0.13 0.23 0.00 (0.02) 2.05
Median 7.78 4.06 3.51 0.04 0.05 0.18 0.00 0.00 2.04
High 8.22 4.32 4.03 0.55 0.54 0.69 0.02 0.10 2.68
Low 7.04 3.55 2.91 0.02 0.00 0.04 0.00 (0.28) 1.50
ALL THRIFTS (335)
Average 7.42 4.21 3.20 0.11 0.11 0.44 0.02 0.01 2.29
MIDWEST THRIFTS (152)
Average 7.41 4.22 3.19 0.08 0.09 0.40 0.01 (0.01) 2.20
ILLINOIS THRIFTS (24)
Average 7.19 4.14 3.05 0.08 0.07 0.40 0.01 (0.04) 2.33
RESTUBBED TABLE
Net Net Inc.
Non- Income Before
Recurring Before Income Extraord. Extraord. Net Core
Expense Taxes Taxes Items Items Income Income
(%) (%) (%) (%) (%) (%) (%)
--------------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK * 0.00 3.03 1.16 1.87 0.00 1.87 1.87
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 0.00 2.15 0.77 1.38 0.00 1.38 1.38
CIBI Community Investors Bancorp 0.00 1.53 0.52 1.01 0.00 1.01 0.96
EFBI Enterprise Federal Bancorp 0.00 1.58 0.55 1.03 0.00 1.03 0.68
FCBF FCB Financial Corp. 0.00 1.71 0.67 1.03 0.00 1.03 1.01
MARN Marion Capital Holdings 0.00 1.92 0.52 1.41 0.00 1.41 1.41
MFFC Milton Federal Financial Corp. 0.00 1.59 0.54 1.04 0.00 1.04 0.96
NWEQ Northwest Equity Corp. 0.00 1.74 0.73 1.00 0.00 1.00 0.95
PFDC Peoples Bancorp 0.00 2.41 0.96 1.45 0.00 1.45 1.44
SFFC StateFed Financial Corporation 0.00 1.84 0.64 1.19 0.00 1.19 1.19
WOFC Western Ohio Financial Corp. 0.00 1.74 0.62 1.12 0.00 1.12 0.66
Average 0.00 1.82 0.65 1.17 0.00 1.17 1.06
Median 0.00 1.74 0.63 1.08 0.00 1.08 0.99
High 0.00 2.41 0.96 1.45 0.00 1.45 1.44
Low 0.00 1.53 0.52 1.00 0.00 1.00 0.66
ALL THRIFTS (335)
Average 0.02 1.34 0.47 0.87 (0.00) 0.87 0.80
MIDWEST THRIFTS (152)
Average 0.01 1.41 0.49 0.92 (0.00) 0.92 0.86
ILLINOIS THRIFTS (24)
Average 0.01 1.13 0.39 0.74 (0.00) 0.74 0.69
* For the twelve months ended May 31, 1996.
EXHIBIT 46
KELLER & COMPANY
Columbus, Ohio
614-766-1426
YIELDS, COSTS AND EARNINGS RATIOS
TRAILING FOUR QUARTERS
Yield on Cost of Net Net
Int. Earning Int. Bearing Interest Interest Core Core
Assets Liabilities Spread Margin * ROAA ROAA ROAE ROAE
(%) (%) (%) (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------
SUBJECT
PREFERRED
SAVINGS BANK ** 8.44 4.14 4.30 5.10 1.87 1.87 8.64 8.64
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 9.55 4.70 4.85 4.81 1.38 1.38 14.64 14.64
CIBI Community Investors Bancorp 8.02 5.08 2.94 3.60 1.01 0.96 6.98 6.63
EFBI Enterprise Federal Bancorp 7.34 5.35 1.99 2.96 1.03 0.68 5.52 3.65
FCBF FCB Financial Corp. 7.51 5.18 2.33 3.38 1.03 1.01 5.37 5.26
MARN Marion Capital Holdings 8.33 5.31 3.02 4.18 1.41 1.41 5.86 5.86
MFFC Milton Federal Financial Corp. 7.62 5.04 2.58 3.61 1.04 0.96 4.80 4.41
NWEQ Northwest Equity Corp. 8.66 5.09 3.57 4.11 1.00 0.95 6.91 6.54
PFDC Peoples Bancorp 7.86 4.82 3.04 3.78 1.45 1.44 9.51 9.49
SFFC StateFed Financial Corporation 8.24 5.49 2.75 3.69 1.19 1.19 5.99 5.99
WOFC Western Ohio Financial Corp. 7.35 4.92 2.43 3.64 1.12 0.66 4.19 2.46
Average 8.05 5.10 2.95 3.78 1.17 1.06 6.98 6.49
Median 7.94 5.09 2.85 3.67 1.08 0.99 5.93 5.93
High 9.55 5.49 4.85 4.81 1.45 1.44 14.64 14.64
Low 7.34 4.70 1.99 2.96 1.00 0.66 4.19 2.46
ALL THRIFTS (335)
Average 7.73 4.91 2.82 3.34 0.87 0.80 8.14 7.28
MIDWEST THRIFTS (152)
Average 7.71 5.01 2.70 3.32 0.92 0.86 7.69 7.07
ILLINOIS THRIFTS (24)
Average 7.49 4.87 2.63 3.18 0.74 0.69 6.30 5.78
* Based on average interest-earning assets.
** For the twelve months ended May 31, 1996.
EXHIBIT 47
KELLER & COMPANY
Columbus, Ohio
614-766-1426
DIVIDENDS, RESERVES AND SUPPLEMENTAL DATA
DIVIDENDS
-------------------------------------
12 Month 12 Month
12 Month Common Current Dividend
Preferred Div./ Dividend Payout
Dividends Share Yield Ratio
($000) ($) (%) (%)
--------------------------------------
SUBJECT
PREFERRED SAVINGS BANK NA NA NA NA
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 0 0.00 0.00 0.00
CIBI Community Investors Bancorp 0 0.12 2.60 9.52
EFBI Enterprise Federal Bancorp 0 3.00 0.00 300.00
FCBF FCB Financial Corp. 0 0.60 4.24 59.41
MARN Marion Capital Holdings 0 0.74 4.00 60.66
MFFC Milton Federal Financial Corp. 0 1.37 4.25 187.67
NWEQ Northwest Equity Corp. 0 0.35 3.90 38.04
PFDC Peoples Bancorp 0 0.54 2.91 31.58
SFFC StateFed Financial Corporation 0 0.40 2.54 36.04
WOFC Western Ohio Financial Corp. 0 1.00 4.82 96.15
Average 0 0.81 2.93 81.91
Median 0 0.57 3.41 48.73
High 0 3.00 4.82 300.00
Low 0 0.00 0.00 0.00
ALL THRIFTS (335)
Average 326 0.29 1.42 22.88
MIDWEST THRIFTS (152)
Average 45 0.39 1.91 35.03
ILLINOIS THRIFTS (24)
Average 62 0.60 2.37 62.76
RESTUBBED TABLE
RESERVES AND SUPPLEMENTAL DATA - MOST RECENT PERIOD
--------------------------------------------------------------------------
Net
Reserves/ Reserves/ Chargeoffs/ Provisions/ 1 Year Total
Gross Non-Perf. Average Net Repricing Effective Assets/
Loans Assets Loans Chargeoffs Gap Tax Rate Employee
(%) (%) (%) (%) (%) (%) ($000)
------------------------------------------------------------------------------
SUBJECT
PREFERRED SAVINGS BANK 0.52 10.81 0.00 0.00 (47.07) 38.32 3,657
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 1.49 81.87 NA NA NA 36.82 NA
CIBI Community Investors Bancorp 0.68 69.06 0.27 102.33 NA 38.32 NA
EFBI Enterprise Federal Bancorp 0.27 NM 0.00 NM NA 34.13 NA
FCBF FCB Financial Corp. 0.51 459.40 0.00 NM NA 39.19 NA
MARN Marion Capital Holdings 1.38 105.74 0.03 100.00 16.21 26.17 6,349
MFFC Milton Federal Financial Corp. 0.36 56.05 0.00 NM NA 34.13 3,962
NWEQ Northwest Equity Corp. 0.59 51.54 0.02 150.00 (4.97) 42.38 2,782
PFDC Peoples Bancorp 0.40 94.20 0.02 128.57 NA 39.94 3,657
SFFC StateFed Financial Corporation 0.38 58.62 NA NA NA 35.39 NA
WOFC Western Ohio Financial Corp. 0.44 78.86 0.00 NM NA 41.67 4,438
Average 0.65 117.26 0.04 120.23 5.62 36.81 4,238
Median 0.48 78.86 0.01 115.45 5.62 37.57 3,962
High 1.49 459.40 0.27 150.00 16.21 42.38 6,349
Low 0.27 51.54 0.00 100.00 (4.97) 26.17 2,782
ALL THRIFTS (335)
Average 0.63 87.73 0.10 120.24 (1.27) 25.87 4,011
MIDWEST THRIFTS (152)
Average 0.67 147.40 0.12 205.75 (2.63) 33.81 3,891
ILLINOIS THRIFTS (24)
Average 0.73 145.46 0.15 199.70 (1.36) 34.61 3,786
KELLER & COMPANY
Columbus, Ohio
614-766-1426
COMPARABLE GROUP MARKET, PRICING AND FINANCIAL RATIOS
Stock Prices as of August 9, 1996
Market Data Pricing Ratios Dividends Financial Ratios
------------------------ -------------------------------- ------------------- ----------------
Book Price/ Price/ Price/
Mark Price 12 Mo Value/ Price Book Price/ Tang. Core Div./ Div./ Payout Equity/
Value Share EPS Share Earn Value Asset Bk. Val Earn Share Yield Ratio Assets ROA ROE
($M) ($) ($) ($) (X) (%) (%) (%) (%) ($) (%) (%) (%) (%) (%)
----- ----- ----- ------ ----- ----- ----- ------- ----- ----- ------- ------ ------ --- ---
PREFERRED SAVINGS BANK
Appraised value - midpoint 16.50 10.00 0.78 15.77 12.80 63.39 23.29 63.39 12.80 0.00 0.00 0.00 36.75 1.82 4.95
Minimum of range 14.03 10.00 0.89 17.03 11.26 58.73 20.51 58.73 11.26 0.00 0.00 0.00 34.92 1.82 5.21
Maximum of range 18.98 10.00 0.70 14.85 14.23 67.35 25.90 67.35 14.23 0.00 0.00 0.00 38.45 1.82 4.73
Superrange maximum 21.82 10.00 0.63 14.04 15.77 71.21 28.68 71.21 15.77 0.00 0.00 0.00 40.27 1.82 4.52
ALL THRIFTS (335)
Average 123.1 17.30 1.40 16.75 16.28 106.2 12.83 109.8 17.66 0.42 1.88 32.71 12.85 0.87 8.14
Median 36.03 15.75 1.26 16.10 13.48 100.2 11.29 101.5 14.52 0.35 2.00 23.13 10.33 0.89 7.46
ILLINOIS THRIFTS (24)
Average 73.45 17.80 1.40 19.45 15.69 94.14 12.64 95.81 17.96 0.26 1.41 19.03 13.45 0.74 6.30
Median 47.81 16.25 1.33 18.18 15.48 93.88 11.05 93.88 16.58 0.22 1.90 18.23 10.41 0.70 6.32
COMPARABLE GROUP (10)
Average 28.24 16.06 1.21 17.91 13.97 89.48 14.85 90.00 16.35 0.81 2.93 81.91 16.59 1.17 6.98
Median 27.03 16.38 1.08 17.64 13.47 88.18 15.27 89.00 15.29 0.57 3.41 48.73 16.89 1.08 5.93
COMPARABLE GROUP
CBCO CB Bancorp, Inc. 20.27 17.25 2.10 16.44 8.21 104.9 10.36 104.9 8.21 0.00 0.00 0.00 9.87 1.38 14.64
CIBI Community Investors Bancorp 10.78 15.38 1.26 16.93 12.20 90.82 12.57 90.82 12.92 0.12 2.60 9.52 13.84 1.01 6.98
EFBI Enterprise Federal Bancorp 26.38 12.75 1.00 15.09 12.75 84.49 13.07 84.66 19.32 3.00 0.00 300.00 15.47 1.03 5.52
FCBF FCB Financial Corp. 41.81 17.00 1.01 18.78 16.83 90.52 16.71 90.52 17.17 0.60 4.24 59.41 18.46 1.03 5.37
MARN Marion Capital Holdings 38.67 20.00 1.22 21.47 16.39 93.15 21.75 93.15 16.39 0.74 4.00 60.66 23.35 1.41 5.86
MFFC Milton Federal Financial 27.67 12.25 0.73 14.91 16.78 82.16 15.55 82.16 18.28 1.37 4.25 187.67 18.93 1.04 4.80
NWEQ Northwest Equity Corp. 9.69 10.25 0.92 13.45 11.14 76.21 10.56 76.21 11.78 0.35 3.90 38.04 12.77 1.00 6.91
PFDC Peoples Bancorp 45.15 19.25 1.71 18.46 11.26 104.2 16.24 104.2 11.26 0.54 2.91 31.58 15.58 1.45 9.51
SFFC StateFed Financial Corporation 12.81 15.75 1.11 18.35 14.19 85.83 16.70 85.83 14.19 0.40 2.54 36.04 19.46 1.19 5.99
WOFC Western Ohio Financial Co 49.12 20.75 1.04 25.19 19.95 82.37 14.99 87.48 34.02 1.00 4.82 96.15 18.20 1.12 4.19
EXHIBIT 49
KELLER & COMPANY
Columbus, Ohio
614-766-1426
VALUATION ANALYSIS AND CONCLUSIONS
PS Financial, Inc./Preferred Savings Bank
Stock Prices as of August 9, 1996
Valuation assumptions: Comparable Group All Thrifts
Symbol Value Average Median Average Median
---------- ---------------------------- ---------------------------- --------------
Post conv. price to earnings P/E 12.80 13.97 13.47 16.28 13.48
Post conv. price to book value P/B 63.39% 89.48% 88.18% 106.28% 100.23%
Post conv. price to assets P/A 23.29% 14.85% 15.27% 12.83% 11.29%
Post conv. price to core earnings P/E 12.80 16.35 15.29 17.66 14.52
Pre conversion earnings ($) Y $ 1,006,000 For the twelve months ended May 31, 1996.
Pre conversion book value ($) B $ 12,029,000 At May 31, 1996.
Pre conversion assets ($) A $ 54,853,000 At May 31, 1996.
Pre conversion core earnings ($) $ 1,006,000 For the twelve months ended May 31, 1996.
Conversion expense ($) X $ 520,375
Proceeds not reinvested ($) Z $ 1,320,000
ESOP borrowings ($) E $ 1,320,000
ESOP cost of borrowings, net (%) S 6.11%
ESOP term of borrowings (yrs.) T 12
RRP amount ($) M $ 660,000
RRP expense ($) N $ 132,000
Tax rate (%) TAX 37.00%
Investment rate of return, net (%) R 3.52%
Investment rate of return, pretax (%) 5.59%
Formulae to indicate value after conversion:
1. P/E method: Value = P/E(Y-R(X+Z)-ES-(1-TAX)E/T-(1-TAX)N)) $ 16,501,667
------------------------------------- =
1-(P/E)R
2. P/B method: Value = P/B(B-X-E-M) = $ 16,498,581
-----------
1-P/B
3. P/A method: Value = P/A(A-X)
------- = $ 16,498,249
1-P/A
VALUATION CORRELATION AND CONCLUSIONS:
Number of Price TOTAL
Shares Per Share VALUE
------------- -------------- --------------
Appraised value - midrange 1,650,000 $10.00 $ 16,500,000
Minimum - 85% of midrange 1,402,500 $10.00 $ 14,025,000
Maximum - 115% of midrange 1,897,500 $10.00 $ 18,975,000
Superrange - 115% of maximum 2,182,125 $10.00 $ 21,821,250
144
EXHIBIT 50
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
PS Financial, Inc./Preferred Savings Bank
At the MINIMUM of the Range
1. Gross Conversion Proceeds
Minimum market value $14,025,000
Less: Estimated conversion expenses 488,819
Net conversion proceeds $13,536,181
2. Generation of Additional Income
Net conversion proceeds $13,536,181
Less: Proceeds not invested (1) 1,122,000
Total conversion proceeds invested $12,414,181
Investment rate 3.52%
Earnings increase - return on proceeds invested $ 437,190
Less: Estimated cost of ESOP borrowings 68,554
Less: Amortization of ESOP borrowings, net of taxes 58,905
Less: RRP expense, net of taxes 70,686
Net earnings increase $ 239,045
3. Comparative Earnings
Regular Core
-------------- -------------
Before conversion - 12 months ended 03/31/96 $ 1,006,000 1,006,000
Net earnings increase 239,045 239,045
After conversion $ 1,245,045 1,245,045
4. Comparative Net Worth (2)
Before conversion - 03/31/96 $12,029,000
Conversion proceeds 11,853,181
After conversion $23,882,181
5. Comparative Net Assets
Before conversion - 03/31/96 $54,853,000
Conversion proceeds 13,536,181
After conversion $68,389,181
(1) Represents ESOP borrowings.
(2) ESOP borrowings and RRP are omitted from net worth.
145
EXHIBIT 51
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
PS Financial, Inc./Preferred Savings Bank
At the MIDPOINT of the Range
1. Gross Conversion Proceeds
Midpoint market value $16,500,000
Less: Estimated conversion expenses 520,375
Net conversion proceeds $15,979,625
2. Generation of Additional Income
Net conversion proceeds $15,979,625
Less: Proceeds not invested (1) 1,320,000
Total conversion proceeds invested $14,659,625
Investment rate of return 3.52%
Earnings increase - return on proceeds invested $ 516,268
Less: Estimated cost of ESOP borrowings 80,652
Less: Amortization of ESOP borrowings, net of taxes 69,300
Less: RRP expense, net of taxes 83,160
Net earnings increase $ 283,156
3. Comparative Earnings
Regular Core
------------- ------------
Before conversion - 12 months ended 03/31/96 $1,006,000 1,006,000
Net earnings increase 283,156 283,156
After conversion $1,289,156 1,289,156
4. Comparative Net Worth (2)
Before conversion - 03/31/96 $12,029,000
Conversion proceeds 13,999,625
After conversion $26,028,625
5. Comparative Net Assets
Before conversion - 03/31/96 $54,853,000
Conversion proceeds 15,979,625
After conversion $70,832,625
(1) Represents ESOP borrowings.
(2) ESOP borrowings and RRP are omitted from net worth.
146
EXHIBIT 52
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
PS Financial, Inc./Preferred Savings Bank
At the MAXIMUM of the Range
1. Gross Conversion Proceeds
Maximum market value $18,975,000
Less: Estimated conversion expenses 551,931
Net conversion proceeds $18,423,069
2. Generation of Additional Income
Net conversion proceeds $18,423,069
Less: Proceeds not invested (1) 1,518,000
Total conversion proceeds invested $16,905,069
Investment rate 3.52%
Earnings increase - return on proceeds invested $ 595,346
Less: Estimated cost of ESOP borrowings 92,750
Less: Amortization of ESOP borrowings, net of taxes 79,695
Less: RRP expense, net of taxes 95,634
Net earnings increase $ 327,267
3. Comparative Earnings
Regular Core
------------- -----------
Before conversion - 12 months ended 03/31/96 $1,006,000 1,006,000
Net earnings increase 327,267 327,267
After conversion $1,333,267 1,333,267
4. Comparative Net Worth (2)
Before conversion - 03/31/96 $12,029,000
Conversion proceeds 16,146,069
After conversion $28,175,069
5. Comparative Net Assets
Before conversion - 03/31/96 $54,853,000
Conversion proceeds 18,423,069
After conversion $73,276,069
(1) Represents ESOP borrowings.
(2) ESOP borrowings and RRP are omitted from net worth.
147
EXHIBIT 53
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
PS Financial, Inc./Preferred Savings Bank
At the SUPERRANGE Maximum
1. Gross Conversion Proceeds
Superrange market value $21,821,250
Less: Estimated conversion expenses 588,221
Net conversion proceeds $21,233,029
2. Generation of Additional Income
Net conversion proceeds $21,233,029
Less: Proceeds not invested (1) 1,745,700
Total conversion proceeds invested $19,487,329
Investment rate 3.52%
Earnings increase - return on proceeds invested $ 686,285
Less: Estimated cost of ESOP borrowings 106,662
Less: Amortization of ESOP borrowings, net of taxes 91,649
Less: RRP expense, net of taxes 109,979
Net earnings increase $ 377,995
3. Comparative Earnings
Regular Core
------------ ----------
Before conversion - 12 months ended 03/31/96 $1,006,000 1,006,000
Net earnings increase 377,995 377,995
After conversion $1,383,995 1,383,995
4. Comparative Net Worth (2)
Before conversion - 03/31/96 $12,029,000
Conversion proceeds 18,614,479
After conversion $30,643,479
5. Comparative Net Assets
Before conversion - 03/31/96 $54,853,000
Conversion proceeds 21,233,029
After conversion $76,086,029
(1) Represents ESOP borrowings.
(2) ESOP borrowings and RRP are omitted from net worth.
148
EXHIBIT 54
KELLER & COMPANY
Columbus, Ohio
614-766-1426
SUMMARY OF VALUATION PREMIUM OR DISCOUNT
Premium or (discount)
from comparable group.
--------------------------
Preferred Average Median
--------- ------- ------
Midpoint:
Price/earnings 12.80x (8.38)% (4.98)%
Price/book value 63.39% * (29.15)% (28.11)%
Price/assets 23.29% 56.85% 52.54%
Price/tangible book value 63.39% (29.57)% (28.77)%
Price/core earnings 12.80x (21.73)% (16.29)%
Minimum of range:
Price/earnings 11.26x (19.37)% (16.37)%
Price/book value 58.73% * (34.37)% (33.40)%
Price/assets 20.51% 38.10% 34.30%
Price/tangible book value 58.73% (34.75)% (34.02)%
Price/core earnings 11.26x (31.12)% (26.33)%
Maximum of range:
Price/earnings 14.23x 1.88% 5.66%
Price/book value 67.35% * (24.73)% (23.62)%
Price/assets 25.90% 74.38% 69.58%
Price/tangible book value 67.35% (25.17)% (24.33)%
Price/core earnings 14.23x (12.98)% (6.92)%
Super maximum of range:
Price/earnings 15.77x 12.86% 17.05%
Price/book value 71.21% * (20.41)% (19.24)%
Price/assets 28.68% 93.13% 87.82%
Price/tangible book value 71.21% (20.88)% (19.99)%
Price/core earnings 15.77x (3.59)% 3.12%
* Represents pricing ratio associated with primary valuation method.
149
ALPHABETICAL
EXHIBITS
EXHIBIT A
KELLER & COMPANY, INC.
555 METRO PLACE NORTH
SUITE 524
DUBLIN, OHIO 43017
(614) 766-1426
(614) 766-1459 FAX
PROFILE OF THE FIRM
KELLER & COMPANY, INC. is a full service consulting firm to financial
institutions, serving clients throughout the United States from its offices in
Columbus, Ohio. The firm consults primarily in the areas of regulatory and
compliance matters, financial analysis and strategic planning, stock valuation
and appraisal, mergers and acquisitions, mutual to stock conversions,
conversion/mergers and branching. Since its inception in 1985, KELLER & COMPANY
has provided a wide range of consulting services to over 80 financial
institutions including thrifts, banks, mortgage companies and holding companies.
KELLER & COMPANY is an affiliate member of the Community Bankers of America, the
Ohio League of Financial Institutions, and the Tri State League of Financial
Institutions.
Each of the firm's senior consultants has over fifteen years front line
experience and accomplishment in various areas of the thrift, banking, and real
estate industries. Each consultant provides to clients distinct and diverse
areas of expertise. Specific services and projects have included charter and
insurance applications, market studies, institutional mergers and acquisitions,
branch sales and acquisitions, operations and performance analyses, business
plans, strategic planning, financial projection and modeling, stock valuation,
fairness opinions, capital plans, policy development and revision, lending,
underwriting, and investment criteria, data processing and management
information systems, and incentive compensation programs.
It is the goal of KELLER & COMPANY to provide specific and ongoing services
that are pertinent and responsive to the needs of the individual client
institution within the changing industry environment, and to offer those
services at reasonable fees on a timely basis. In recent years, KELLER & COMPANY
has become one of the leading consulting firms in the nation.
150
CONSULTANTS IN THE FIRM
MICHAEL R. KELLER has over eighteen years experience as a consultant to the
financial institution industry. Immediately following his graduation from
college, he was employed by the Ohio Division of Savings and Loan Associations,
working for two years in the northeastern Ohio district as an examiner of thrift
institutions before pursuing graduate studies at the Ohio State University.
Mr. Keller later worked as an associate for a management consulting firm
specializing in services to thrift institutions. During his eight years with the
firm, he specialized in mergers and acquisitions, branch acquisitions and sales,
branch feasibility studies, stock valuations, charter applications, and site
selection analyses. By the time of his departure, he had attained the position
of Vice President, with experience in almost all facets of thrift operations.
Prior to forming Keller & Company, Mr. Keller also worked as a senior consultant
in a larger consulting firm. In that position, he broadened his activities and
experience, becoming more involved with institutional operations, business and
strategic planning, regulatory policies and procedures, conversion appraisals,
and fairness opinions. Mr. Keller established the firm in November, 1985 to
better serve the needs of the financial institution industry.
Mr. Keller graduated from Wooster College with a B.A. in Economics in 1972, and
later received an M.B.A. in Finance in 1976 from the Ohio State University where
he took courses in corporate stock valuations.
151
Consultants in the Firm (cont.)
JOHN A. SHAFFER has over twenty years experience in banking, finance, estate
lending, and development.
From 1971 to 1974, Mr. Shaffer was employed by a large real estate investment
trust as a lending officer, specializing in construction and development
loans. By 1974, having gained experience in loan underwriting, management and
workout, he joined Chemical Bank of New York and was appointed Vice President
for Loan Administration of Chemical Mortgage Company in Columbus, Ohio. At
Chemical, he managed all commercial and residential loan servicing,
administering a portfolio in excess of $1 billion. His responsibilities also
included the analysis, management and workout of problem commercial loans and
properties, and the structuring, negotiation, acquisition and sale of loan
servicing and mortgage and equity securities.
Mr. Shaffer later formed an independent real estate and financial consulting
firm, serving corporate and institutional clients, and also investing in and
developing real estate. His primary activities have included the planning,
analysis, financing, implementation, and administration of real estate projects,
as well as financial projection and modeling, cost and profit analysis, loan
management, budgeting, cash flow management and project design.
Mr. Shaffer graduated from Syracuse University in 1965 with a B.S. in Business
Administration, later receiving an M.B.A. in Finance and a Ph.D. in Economics
from New York University.
152
Consultants in the Firm (cont.)
JOHN S. KORTING has eighteen years experience in the financial institution
industry working in such areas as data processing, software design, strategic,
planning, productivity improvement, cash management, incentive compensation
planning, asset and 1iability management and organizational planning.
Mr. Korting began his career with Huntington Bank, Columbus, Ohio, in 1976 as
manager of the accounting department in the Bank's operations area, focusing on
system analysis for automated teller machines and electronic funds transfer. Mr.
Korting then became a system engineer with Electronic Data Systems, Dallas,
Texas, providing computer programming and implementation support. He then served
as a senior consultant with two big eight accounting firms, Deloitte & Touche
and Price Waterhouse. He worked on a wide variety of financial institution
projects, including strategic planning, Office of Thrift Supervision business
plans, financial analysis, computer, installations, computerized financial
modeling, and bank operations.
John Korting graduated from the Ohio State University with a B.S. in Accounting
and Computer Science in 1976.
153
EXHIBIT B
RB 20
CERTIFICATION
I hereby certify that I have not been the subject of any criminal, civil or
administrative judgments, consents, undertakings or orders, or any past or
ongoing indictments, formal investigations, examinations, or administrative
proceedings (excluding routine or customary audits, inspections and
investigations) issued by any federal or state court, any department, agency, or
commission of the U.S. Government, any state or municipality, any
self-regulatory trade or professional organization, or any foreign government or
governmental entity, which involve:
(i) commission of a felony, fraud, moral turpitude, dishonesty or breach of
trust;
(ii) violation of securities or commodities laws or regulations;
(iii) violation of depository institution laws or regulations;
(iv) violation of housing authority laws or regulations;
(v) violation of the rules, regulations, codes of conduct or ethics of a
self-regulatory trade or professional organization;
(vi) adjudication of bankruptcy or insolvency or appointment of a receiver,
conservator, trustee, referee, or guardian.
I hereby certify that the statements I have made herein are true, complete, and
correct to the best of my knowledge and belief.
Conversion Appraiser
August 29, 1996 /s/ Michael R. Keller
- -------------------------------- -----------------------------
Date Michael R. Keller
154
EXHIBIT C
AFFIDAVIT OF INDEPENDENCE
STATE OF OHIO,
COUNTY OF FRANKLIN, ss:
I, Michael R. Keller, being first duly sworn hereby depose and say that:
The fee which I received directly from the applicant, Preferred Savings
Bank, Chicago, Illinois, in the amount of $15,000 for the performance of my
appraisal was not related to the value determined in the appraisal; that the
undersigned appraiser is independent and has fully disclosed to the Office of
Thrift Supervision any relationships which may have a material bearing upon the
question of my independence; and that any indemnity agreement with the applicant
has been fully disclosed in a written statement to the Office of Thrift
Supervision.
Further, affiant sayeth naught.
/S/ MICHAEL R. KELLER
-----------------------
MICHAEL R. KELLER
Sworn to before me and subscribed in my presence this 30th day of August,
1996.
Lori A. Kessen
----------------------
NOTARY PUBLIC
SEAL LORI A. KESSEN
NOTARY PUBLIC, STATE OF OHIO
MY COMMISSION EXPIRES AUG. 10, 2000