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COLUMBIA FINANCIAL OF KENTUCKY, INC.
the holding company for
COLUMBIA FEDERAL
SAVINGS BANK
Become a Shareholder!
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As of September 30, 1997, Columbia Federal Savings Bank (the "Bank") exceeded
all regulatory capital requirements.
Tangible Core Risk-Based
Capital Capital Capital
------- ------- -------
Required 1.5% 3.0% 8.0%
9/30/97 12.6% 12.6% 30.4%
Pro Forma* 20.1% 20.1% 50.3%
* Assumes the sale of 2,020,000 shares and retention of 50% of the net
conversion proceeds by the Holding Company
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LOAN PORTFOLIO COMPOSITION
The Bank's loan portfolio primarily consists of conventional real estate loans
secured by one- to four-family residences located in the Bank's primary market
area. To a lesser extent, the Bank also makes multifamily residential,
construction and non-residential real estate loans and consumer loans.
As of
September 30, 1997
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One to four-family 83.79%
Non-residential 2.68%
Construction 4.87%
Multifamily residential 8.58%
Consumer 0.08%
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NONPERFORMING LOANS TO TOTAL NET LOANS *
Columbia Federal Savings Bank has maintained a ratio of less than 1% of
nonperforming loans to total net loans for the past five years.
9/30/97 9/30/96 9/30/95 9/30/94 9/30/93
------- ------- ------- ------- -------
0.98% 0.26% 0.00% 0.71% 0.39%
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PRO FORMA DATA*
Year Ended September 30, 1997
MINIMUM MIDPOINT MAXIMUM MAXIMUM
OF RANGE OF RANGE OF RANGE OF RANGE(adj.)
-------- -------- -------- --------------
Shares Outstanding 1,717,000 2,020,000 2,323,000 2,671,450
Sale Price Per Share $10.00 $10.00 $10.00 $10.00
Gross Proceeds $17,170,000 $20,200,000 $23,230,000 $26,714,500
Pro Forma
Shareholders' Equity $27,580,000 $30,209,000 $32,839,000 $35,863,000
Shareholders' Equity per Share $16.06 $14.95 $14.14 $13.42
Price/Book Ratio(a) 62.27% 66.89% 70.72% 74.52%
Pro Forma Net Earnings per Share $0.56 $0.51 $0.47 $0.44
Price/Earnings Ratio(a) 17.76x 19.53x 21.31x 22.65x
* Information based upon assumptions in the Prospectus under "Pro Forma Data".
(a) This is not intended to represent potential price appreciation. There are
no assurances that the market price will be at or above the offering price
once the shares are issued.
SELECTED FINANCIAL RATIOS
At or For the Year Ended September 30,
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1997 1996 1995 1994 1993
---- ---- ---- ---- ----
Return on average assets 0.53% 0.36% 0.77% 1.17% 1.23%
Return on average equity 4.30% 3.10% 6.92% 11.78% 14.12%
Interest rate spread 2.97% 2.94% 2.93% 3.53% 3.45%
Average equity to average assets 12.22% 11.50% 11.15% 9.96% 8.70%
Nonperforming assets to total assets 0.58% 0.16% 0.03% 0.56% 0.46%
Allowance for loan losses to total net loans 0.49% 0.28% 0.28% 0.27% 0.28%
The stock offered in the conversion is not a deposit or account and is not
federally insured or guaranteed. This is not an offer to sell or a
solicitation of an offer to buy stock. The offer will be made only by the
Prospectus accompanied by a stock order form and certification form.
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CONVERSION INFORMATION CENTER -
FLORENCE BRANCH OFFICE
7550 Dixie Highway
Florence, Kentucky 41042
(606) 525-6403
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COLUMBIA FINANCIAL OF KENTUCKY, INC.
STOCK OWNERSHIP GUIDE AND STOCK ORDER FORM INSTRUCTIONS
STOCK ORDER FORM INSTRUCTIONS
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ITEM 1 AND 2 - Fill in the number of shares that you wish to purchase and the
total payment due. The amount due is determined by multiplying the number of
shares ordered by the subscription price of $10.00 per share. The minimum number
of shares that may be subscribed for is 25. Each eligible Account Holder,
Supplemental Eligible Account Holder and Voting Member may purchase in
the Subscription Offering not more than 15,000 Common Shares. In connection with
the exercise of subscription rights arising from a single deposit account in
which two or more persons have an interest, however, the aggregate maximum
number of Common Shares which the persons having an interest in such account may
purchase in the Subscription Offering in relation to such account is 15,000
Common Shares. Except for the ESOP, which may purchase up to 8% of the total
Common Shares sold in the Offering, no person, together with his or her
Associates (hereinafter defined) and other persons Acting in Concert
(hereinafter defined) with him or her, may purchase more than 30,000 Common
Shares in the Offering. Columbia Financial of Kentucky, Inc., reserves the right
to reject the subscription of any order received in the Subscription and
Community Offering, if any, in whole or in part.
ITEM 3 - Payment for shares may be made, by check, bank draft or money order
payable to Columbia Financial of Kentucky, Inc., DO NOT MAIL CASH. Your funds
will earn interest at Columbia Federal Savings Bank's passbook rate, which is
currently 3.0%.
ITEM 4 - To pay by withdrawal from a savings account or certificate of deposit
at Columbia Financial of Kentucky, Inc., insert the account number(s) and the
amount(s) you wish to withdraw from each account. If more than one signature is
required to withdraw, each must sign in the signature box on the front of this
form. To withdraw from an account with checking privileges, please write a
check. No early withdrawal penalty will be charged on funds used to purchase
stock. A hold will be placed on the account(s) for the amount(s) you show.
Payments will remain in the account(s) until the stock offering closes. If a
partial withdrawal reduces the balance of a certificate account to less than the
applicable minimum, the remaining balance will be refunded.
ITEM 5 - Please check this box to indicate whether you are a director, officer
or employee of Columbia Federal Savings Bank or a member of such person's
immediate family living in the same household.
ITEM 6 - Please check the appropriate box if you were:
a) A depositor with $50.00 or more on deposit at Columbia Federal
Savings Bank as of 9/30/96. Enter information below for all
deposit accounts that you had at Columbia Federal Savings Bank on
9/30/96.
b) A depositor at Columbia Federal Savings Bank as of 12/31/97, but
are not an Eligible Account Holder. Enter information below for
all deposit accounts that you had at Columbia Federal Savings Bank
on 12/31/97.
c) A member of Columbia Federal Savings Bank as of 1/31/98, but are
not an Eligible Account Holder or a Supplemental Eligible Account
Holder. Enter information below for all deposit and/or loan
accounts that you had at Columbia Federal Savings Bank on 1/31/98.
ITEM 7 - The stock transfer industry has developed a uniform system of
shareholder registrations that we will use in the issuance of Columbia Financial
of Kentucky, Inc. common stock. Please complete this section as fully and
accurately as possible, and be certain to supply your social security or Tax
I.D. number(s) and your daytime and evening phone numbers. We will need to call
you if we cannot execute your order as given. If you have any questions
regarding the registration of your stock, please consult your legal advisor.
SUBSCRIPTION RIGHTS ARE NOT TRANSFERABLE. If you are a qualified member, to
protect your priority over other purchasers as described in the Prospectus, you
must take ownership in at least one of the account holder's names.
STOCK OWNERSHIP GUIDE
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INDIVIDUAL - The Stock is to be registered in an individual's name only. YOU MAY
NOT LIST BENEFICIARIES FOR THIS OWNERSHIP.
JOINT TENANTS - Joint tenants with rights of survivorship identifies two or more
owners. When stock is held by joint tenants with rights of survivorship,
ownership automatically passes to the surviving joint tenant(s) upon the death
of any joint tenant. YOU MAY NOT LIST BENEFICIARIES FOR THIS OWNERSHIP.
TENANTS IN COMMON - Tenants in common may also identify two or more owners. When
stock is to be held by tenants in common, upon the death of one co-tenant,
ownership of the stock will be held by the surviving co-tenant(s) and by the
heirs of the deceased co-tenant. All parties must agree to the transfer or sale
of shares held by tenants in common. YOU MAY NOT LIST BENEFICIARIES FOR THIS
OWNERSHIP.
UNIFORM GIFT TO MINORS - For residents of many states, stock may by held in the
name of a custodian for the benefit of a minor under the Uniform Gift to Minors
Act. For residents in other states, stock may be held in a similar type of
ownership under the Uniform Transfer to Minors Act of the individual state. For
either ownership, the minor is the actual owner of the stock with the adult
custodian being responsible for the investment until the child reaches legal
age. FOR PURCHASES IN THE SUBSCRIPTION OFFERING, THE MINOR MUST BE THE ACCOUNT
HOLDER, NOT THE CUSTODIAN. Only one custodian and one minor may be designated.
Instructions: On the first Name line, print the first name, middle initial and
last name of the custodian, with the abbreviation "CUST" after the name. Print
the first name, middle initial and last name of the minor on the second Name
line. USE THE MINOR'S SOCIAL SECURITY NUMBER.
CORPORATION/PARTNERSHIP - Corporations and Partnerships may purchase stock.
Please provide the Corporation/Partnership's legal name and Tax I.D. To have
depositor rights, the Corporation/Partnership must have an account in the legal
name. Please contact the Stock Information Center to verify depositor rights and
purchase limitations.
INDIVIDUAL RETIREMENT ACCOUNT - Individual Retirement Account ("IRA") holders
may make stock purchases from their deposits through a prearranged
"trustee-to-trustee" transfer. Stock may only be held in a self-directed IRA.
Columbia Financial of Kentucky, Inc., does not offer a self-directed IRA. Please
contact the Stock Information Center if you have any questions about your IRA
account.
FIDUCIARY/TRUST - Generally, fiduciary relationships (such as Trusts, Estates,
Guardianships, etc.) are established under a form of trust agreement or pursuant
to a court order. Without a legal document establishing a fiduciary
relationship, your stock may not be registered in a fiduciary capacity.
Instructions: On the first name line, print the first name, middle initial and
last name of the fiduciary if the fiduciary is an individual. If the fiduciary
is a corporation, list the corporate title on the first name line. Following the
name, print the fiduciary title such as trustee, executor, personal
representative, etc. On the second name line, print the name of the maker ,
donor or testator or the name of the beneficiary. Following the name, indicate
the type of legal document establishing the fiduciary relationship (agreement,
court order, etc.). In the blank after "Under Agreement Dated", fill in the date
of the document governing the relationship. The date of the document need not be
provided for a trust created by a will.