Conversion Valuation Report
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Valued as of March 20, 1998
DOUGLAS SAVINGS BANK
RENAMED
BEN FRANKLIN BANK OF ILLINOIS
Arlington Heights, Illinois
Prepared By the Board of Directors and Management of
Douglas Savings Bank
With the assistance of:
Ferguson & Company
Suite 305
860 West Airport Freeway
Hurst, TX 76054
817-577-9558
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FERGUSON Financial
- --------- Institution
& COMPANY Consulting
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Suite 305
860 West Airport Frwy
Hurst, TX 76054
(817) 577-9558
(817) 577-3054 Fax
STATEMENT OF APPRAISER'S INDEPENDENCE
Douglas Savings Bank
Renamed
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
We are the appraiser for Ben Franklin Bank of Illinois, ("Franklin" or
"Bank") Arlington Heights, Illinois, in connection with its conversion,
reorganization and issuance of Public Shares. We are submitting our independent
estimate of the pro forma market value of the Franklin's stock to be issued in
the conversion and reorganization. In connection with our appraisal of the
to-be-issued stock, we have received a fee which was not related to the
estimated final value. The estimated pro forma market value is solely the
opinion of our company and it was not unduly influenced by Franklin, its
conversion counsel, its selling agent, or any other party connected with the
conversion.
Franklin has agreed to indemnify Ferguson & Company under certain
circumstances against liabilities arising out of our services. Specifically, we
are indemnified against liabilities arising from our appraisal except to the
extent such liabilities are determined to have arisen because of our negligence
or willful conduct.
Ferguson & Company
/s/ Charles M. Herbert
Charles M. Hebert
Principal
March 31, 1998
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FERGUSON Financial
- --------- Institution
& COMPANY Consulting
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Suite 305
860 West Airport Frwy
Hurst, TX 76054
(817) 577-9558
(817) 577-3054 Fax
March 31, 1998
Board of Directors
Douglas Savings Bank
14 North Dryden Avenue
Arlington Heights, Illinois
Dear Directors:
We have completed and hereby provide, as of March 20, 1998, an independent
appraisal of the estimated pro forma market value of Douglas Savings Bank,
renamed Ben Franklin Bank of Illinois, ("Franklin" or the "Bank"), Arlington
Heights, Illinois, in connection with the conversion of Franklin from the mutual
form to the stock form of organization ("Conversion"). This appraisal report is
furnished pursuant to the regulatory filing of the Bank's Application for
Conversion ("Form AC") with the Office of Thrift Supervision ("OTS").
Ferguson & Company ("F&C") is a consulting firm that specializes in
providing financial, economic, and regulatory services to financial
institutions. The background and experience of F&C is presented in Exhibit I. We
believe that, except for the fees we will receive for preparing the appraisal
and assisting with Franklin's business plan, we are independent. F&C personnel
are prohibited from owning stock in conversion clients for a period of at least
one year after conversion.
In preparing our appraisal, we have reviewed Franklin's Application for
Approval of Conversion, including the Proxy Statement as filed with the OTS. We
conducted an analysis of Franklin that included discussions with Crowe, Chizek
and Company LLP, the Bank's independent auditors, and with Silver, Freedman &
Taff, L. L. P., the Bank's conversion counsel. In addition, where appropriate,
we considered information based on other available published sources that we
believe is reliable; however, we cannot guarantee the accuracy or completeness
of such information.
We also reviewed the economy in Franklin's primary market area and compared
the Bank's financial condition and operating results with that of selected
publicly traded thrift institutions. We reviewed conditions in the securities
markets in general and in the market for thrift's stocks in particular.
Our appraisal is based on Franklin's representation that the information
contained in the Form AC and additional evidence furnished to us by the Bank and
its independent auditors are truthful, accurate, and complete. We did not
independently verify the financial statements and other information provided by
Franklin and its auditors, nor did we independently value the Bank's assets or
liabilities. The valuation considers Franklin only as a going concern and should
not be considered an indication of its liquidation value.
Board of Directors
March 31, 1998
Page 2
It is our opinion that, as of March 20, 1998, the estimated pro forma
market value of Franklin was $14,000,000 or 1,400,000 shares at $10.00 per
share. The resultant valuation range was $11,900,000 at the minimum (1,190,000
shares at $10.00 per share) to $16,100,000 at the maximum (1,610,000 shares at
$10.00 per share), based on a range of 15 percent below and above the midpoint
valuation. The supermaximum was $18,515,000 (1,851,500 shares at $10.00 per
share).
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of common
stock in the conversion. Moreover, because such valuation is necessarily based
upon estimates and projections of a number of matters, all of which are subject
to change from time to time, no assurance can be given that persons who purchase
shares of common stock in the conversion will thereafter be able to sell such
shares at prices related to the foregoing estimate of the Bank's pro forma
market value. F&C is not a seller of securities within the meaning of any
federal or state securities laws and any report prepared by F&C shall not be
used as an offer or solicitation with respect to the purchase or sale of any
securities.
Our opinion is based on circumstances as of the date hereof, including
current conditions in the United States securities markets. Events occurring
after the date hereof, including, but not limited to, changes affecting the
United States securities markets and subsequent results of operations of
Franklin, could materially affect the assumptions used in preparing this
appraisal.
The valuation reported herein will be updated as provided in the OTS
conversion regulations and guidelines. All updates will consider, among other
things, any developments or changes in Franklin's financial performance and
condition, management policies, and current conditions in the equity markets for
thrift shares. Should any such new developments or changes be material, in our
opinion, to the valuation of the shares, appropriate adjustments will be made to
the estimated pro forma market value. The reasons for any such adjustments will
be explained in detail at the time.
Respectfully,
Ferguson & Company
/s/ Charles M. Herbert
Charles M. Hebert
Principal
FERGUSON & COMPANY
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TABLE OF CONTENTS
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
PAGE
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INTRODUCTION 1
SECTION I -- FINANCIAL CHARACTERISTICS 3
PAST & PROJECTED ECONOMIC CONDITIONS 3
FINANCIAL CONDITION OF INSTITUTION 4
Balance Sheet Trends 4
Asset/Liability Management 5
Income and Expense Trends 10
Regulatory Capital Requirements 10
Lending 10
Nonperforming Assets 16
Loan Loss Allowance 17
Mortgage Backed Securities and Investments 20
Savings Deposits 22
Borrowings 23
Subsidiaries 23
Legal Proceedings 23
EARNINGS CAPACITY OF THE INSTITUTION 23
Asset-Size-Efficiency of Asset Utilization 24
Intangible Values 24
Effect of Government Regulations 24
Office Facilities 24
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TABLE OF CONTENTS -- CONTINUED
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
PAGE
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SECTION II -- MARKET AREA 1
DEMOGRAPHICS 1
SECTION III -- COMPARISON WITH PUBLICLY TRADED THRIFTS 1
COMPARATIVE DISCUSSION 1
Selection Criteria 1
Profitability 2
Balance Sheet Characteristics 2
Risk Factors 2
Summary of Financial Comparison 3
FUTURE PLANS 3
SECTION IV -- CORRELATION OF MARKET VALUE 1
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED 1
Financial Aspects 1
Market Area 3
Management 3
Dividends 3
Liquidity 3
Thrift Equity Market Conditions 4
EFFECT OF INTEREST RATES ON THRIFT STOCK 4
ILLINOIS ACQUISITIONS 6
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TABLE OF CONTENTS -- CONTINUED
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
PAGE
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SECTION IV -- CORRELATION OF MARKET VALUE -- continued
Adjustments Conclusion 7
Valuation Approach 7
Valuation Conclusion 8
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LIST OF TABLES
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
TABLE
NUMBER TABLE TITLE PAGE
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SECTION I -- FINANCIAL CHARACTERISTICS
1 Selected Financial and Other Data 6
2 Selected Operating Ratios 7
3 Weighted Average Yields Earned/Rates Paid 8
4 Interest Rate Sensitivity Analysis 9
5 Interest Rate Sensitivity Net Portfolio Value 9
6 Regulatory Capital Compliance 10
7 Analysis of Loan Portfolio 11
8 Loan Activity 12
9 Average Balances, Yields, Costs 14
10 Rate/Volume Analysis 15
11 Non-Performing Assets 16
12 Analysis of Allowance for Loan Losses 18
13 Allocation of Allowance for Loan Losses 19
14 Classification of Investment Securities 20
14a Contractual Maturities 21
15 Deposit Portfolio 22
16 Jumbo CD's at December 31, 1997 23
17 Office Facilities and Locations 24
SECTION II -- MARKET AREA
1 Key Economic Indicators 2
2 Employment by Industry 4
3 Market Area Deposits 5
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LIST OF TABLES -- continued
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
TABLE
NUMBER TABLE TITLE PAGE
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SECTION III -- COMPARISON WITH PUBLICLY TRADED THRIFTS
1 Comparatives General 4
2 Key Financial Indicators 5
3 Pro Forma Comparisons 6
SECTION IV -- CORRELATION OF MARKET VALUE
1 Appraisal Adjustments to Earnings 2
2 Acquisitions in Illinois 9
3 Recent Conversions 11
4 Comparison of Pricing Ratios 14
LIST OF FIGURES
FIGURE
NUMBER FIGURE TITLE PAGE
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SECTION IV -- CORRELATION OF MARKET VALUE
I SNL Index 15
II Interest Rates 16
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EXHIBITS
Ben Franklin Bank of Illinois
Arlington Heights, Illinois
EXHIBIT TITLE
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Exhibit I -- Ferguson & Company Qualifications
Exhibit II -- Selected National, Region, State, and Comparatives Information
Exhibit III -- Financial Highlights Douglas Savings Bank
Exhibit IV -- Comparative Group TAFS and BankSource Reports
Exhibit V -- Pro Forma Calculations
Pro Forma Assumptions
Pro Forma Effect of Conversion Proceeds at the Minimum of the Range
Pro Forma Effect of Conversion Proceeds at the Midpoint of the Range
Pro Forma Effect of Conversion Proceeds at the Maximum of the Range
Pro Forma Effect of Conversion Proceeds at the SuperMax of the Range
Pro Forma Analysis Sheet
Exhibit VI -- Financial Highlights of Comparatives
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SECTION I
FINANCIAL CHARACTERISTICS
FERGUSON & COMPANY Section I.
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INTRODUCTION
DOUGLAS SAVINGS BANK
Renamed
BEN FRANKLIN BANK OF ILLINOIS
Ben Franklin Bank of Illinois ("Franklin" or "Bank") will operate as a
federally chartered mutual savings bank located in Arlington Heights, Illinois.
Franklin changed its name from Douglas Saving Bank to Ben Franklin Bank of
Illinois in connection with its charter conversion from an Illinois chartered
mutual savings bank to a mutual federal savings bank. Founded in 1893 as the
Casmir Pulaski Savings and Loan the association operated under that title until
1938 when the name was changed to Douglas Savings and Loan Association. The
Association received insurance of accounts in January of 1941 and is currently
insured by the FDIC under the SAIF. In August 1967, the Association relocated
from Chicago to Arlington Heights. In 1991, the name of the institution was
changed to Douglas Savings Bank. The Bank now conducts its business through its
main office and one branch office. The main office (14 North Dryden Place) is
located in Arlington Heights, and the branch (3148 Kirchoff Road) is located in
Rolling Meadows, Illinois. At December 31, 1997, the Bank had $122.59 million in
total assets, $112.75 million in deposits, and equity capital of $7.8 million,
which equated to 6.36% of total assets.
BEN FRANKLIN FINANCIAL, INC.
Ben Franklin Financial, Inc. ("BFFI" or "the Holding Company"), a Delaware
Corporation, was organized by the Bank in March 1998, for the purpose of holding
all of the common stock of the Bank. The Company has received conditional
approval from the Office of Thrift Supervision ("OTS") to become a savings and
loan holding company through the acquisition of 100% of the capital stock of the
Bank. Upon completion of the Conversion and Reorganization, the significant
assets of the Company will be all of the Bank's outstanding Common Stock and the
loan to the ESOP that will be used to purchase 8% of the Common Stock issued in
the Conversion. The Holding Company will invest 50% of the net proceeds of the
Offering, as permitted by the OTS, in the Common Stock of the Douglas Savings.
The remaining net proceeds of offering, the company retains, are to be used for
general business activities.
Franklin is currently a traditional thrift. The asset composition of the
institution suggests that it has primarily been managed as a traditional thrift.
A traditional thrift mainly makes long-term residential loans that are funded
primarily with certificates of deposits and savings accounts. The Bank has
recently hired a new President and Chief Executive Officer with a commercial
banking background. The new CEO has begun exploring the expansion of its lending
activities. The changes anticipated in the activities of the bank have
influenced the hiring of a new Chief Financial Officer, an experienced
commercial loan officer and deposit services coordinator. Management is
considering the establishment of a consumer finance subsidiary and a department
that would offer loan administration and other correspondent services to credit
unions. If the planned changes are completed, the Bank will began to take on the
asset appearance of a commercial bank.
The Bank offers a variety of loan products to accommodate its customer
base. Single family loans, both fixed rate and adjustable rate mortgages
("ARM's") are originated. In addition, the Bank has been successful in
generating volume in a fixed rate "bi-weekly" loan product and an adjustable
equity line of credit. Franklin's Management has recognized the higher risk
levels associated with its portfolio changes
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FERGUSON & COMPANY Section I.
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by providing additional depth of management with commercial lending skills and
expertise. In addition, the Bank has provided additional loan and lease loss
reserves.
Franklin had $65 thousand in non-performing assets at December 31, 1997
(0.05% of total assets) as compared to $461 thousand at December 31, 1996 (0.43%
of total assets). The current level of nonperforming assets is nominal.
Management has adequate control of the problem assets and does a more than
adequate job of managing such assets. The current nonperforming asset level is
not likely to have a significant impact on the future earning capacity or
capital position of the Bank.
Deposit accounts have increased during the four years from December 31,
1993, to December 31, 1997, by $34.8 million. Between December 31, 1993, and
December 31, 1994, deposits increased from $77.9 million to $81.7 million.
Following 1994, growth continued between 1994 and 1995 with deposits increasing
$7.1 million. December 31, 1996 saw another increase of $5.5 million to $94.3
million. Between December 31, 1996, and December 31, 1997, deposits continued
growing by $18.4 million to their current level of $112.8 million.
The Bank's capital has increased both in dollar amounts and as a percentage
of total asset until December 1997. At December 31, 1993, capital was $5.03
million, or 5.97% of assets, in December 31, 1994; capital had increased to 5.96
million and was now 6.09% of total assets. December 31, 1995, capital was $6.92
million and had increased to 6.69% of total assets. Between December 31, 1995,
and December 31, 1996, capital increased from $6.92 million to $7.45 million, or
6.97% of total assets. At December 31, 1997, capital had increased in dollars to
$7.8 million, but due to asset growth, the percent of capital to assets had
decreased to 6.36%.
Franklin's profitability, as measured by return on average assets ("ROAA")
and return on average equity ("ROAE") has been in decent since December 31,
1993. At December 31, 1993, the Bank's ROAA was 0.98%. It increased slightly to
1.02%, by year-end December 31, 1994. From December 31, 1994 to December 31,
1995, ROAA declined to 0.75%. ROAA further declined to 0.44% at December 31,
1996 and fell further to 0.27% at December 31, 1997. Return on average equity
has displayed a similar decline. It was 17.66%, 16.40%, 12.02%, 6.79%, and 3.97%
in 1993, 1994, 1995, 1996, and 1997, respectively. The drop in the Bank
performance has followed exactly the diminishing interest rate spread (average
rate on interest earning assets ("IEA's") minus average rate on interest bearing
liabilities ("IBL's") and the declining net interest margins (fully tax
equivalent net interest/average earning assets). Interest rate spreads averaged
3.75% in 1993, 3.46% in 1994, 2.81% in 1995, 2.64% in 1996, and 2.59% in 1997.
This decline represents a 30.93% decline in average interest rate spread. The
net interest margin of the Bank has declined 25.13% during the same period. In
1993, the net interest margin was 3.94%; in 1994 it was 3.69%, in 1995 it was
3.19%, 3.00% in 1996, and finally, 2.95% in 1997. Non-interest income is so
limited that at its current levels it cannot have a major impact on earnings.
However, non-interest expense (operating expenses) have remained well
controlled. Expressed as a percent of total assets, operating income has
increased from 2.04% of total assets in 1993, to 2.18% of total assets in 1997.
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I. FINANCIAL CHARACTERISTICS
PAST & PROJECTED ECONOMIC CONDITIONS
Fluctuations in thrift earnings in recent years have occurred within the
time frames as a result of changing temporary trends in interest rates and other
economic factors. However, the year-to-year results have been upward, while the
general trends in the thrift industry have been improving as interest rates
declined. Interest rates began a general upward movement during late 1993,
followed by a decline in interest margins and profitability. Rates began a
general decline in mid 1995. Since early 1996, rates have moved in a narrow
band. From mid-March until early June there was a slight upward trend, with the
spread between the short end and the long end increasing. Early July saw the
jobless rate dip, and responding to inflation fears, the rates rose slightly. In
late July, Greenspan's comments sparked a rise in the Dow-Jones, but rates
remained steady. Mid-August's report on the rising CPI caused a slight increase
in rates, but they remained within the narrow band. The recent pass by the
Federal Reserve in October 1997, to raise rates provided some stability in rates
and the equities market until the latter days of October. Then the equities
market demonstrated its ability to stage a market event by falling and rising
rapidly without real stimulus from the economy. By November's end the market had
gain most of the losses of October. Since the end of November the thrift
equities market has been moving up.
The overall economic environment has been conducive to profitability in the
industry as well as in the area of equity markets. The economy continues to
expand slowly, unemployment is at recent record low levels, and for the moment,
inflation seems to be in restraint. However, there is some preemptive concern
that the lower unemployment rates could be a harbinger of higher inflation
rates. Currently, a consensus indicates that although growing, the economy is
not as robust as some would desire, that inflation is for the moment under
control, and that the chance of a rate increase is nominal, for the moment.
These factors have caused the equities market to rise beyond the expectations of
most reasonable analysts. In addition, there is tremendous pressure on the
general equities market produced by the volume of new dollars entering the
mutual funds market. It is unreasonable to assume that the thrift equities
market would escape the buying pressures that have driven up other markets.
The general rise in the equity market has translated into overall gains in
the thrift equity market. Recently, conversion stocks have become of interest to
some mutual funds and institutional buyers. These factors, coupled with the
circumstances of having fewer conversions in 1996 and 1997, have produced some
dramatic results in the market. The number of "conversion stock speculators" has
grown as thrift and bank acquisitions have continued. The hope of a quick profit
has many speculative dollars chasing fewer good conversion opportunities,
bringing into play the principal of supply and demand.
In the recent months, the thrift equities market has generally paralleled
the other major equities markets. Some interim fluctuations have been caused by
changes or anticipated changes in interest rates or other economic conditions
that influence, or that are perceived to influence the market. In the general
equities market, increased stock prices usually response to improved profits or
anticipated improvements in profits, with price-to-earnings ratios increasing as
increased earnings potentials are anticipated. There is little economic news
that would indicate that the market will stop its upward trend although there
may be periodic adjustments similar to the one in late October. However, it is
not realistic to think that any market can continue to rise at a 15% to 20% rate
per annum for an indefinite period, but accurately anticipating the change is
unlikely.
The thrift industry generally is better equipped to cope with changing
interest rates than it was in the past, and investors have recognized the
demonstrated ability of the thrift industry to maintain interest margins in
spite of rising interest rates. However, much of the industry is still a long
lender and, for the most part, a short borrower. Periods of gradually rising
interest rates can be readily managed, but periods
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FERGUSON & COMPANY Section I.
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of rapidly rising rates and interest rate spikes can negate, to a certain
degree, the positive impact of adjustable rate loans and investments.
FINANCIAL CONDITION OF INSTITUTION
Balance Sheet Trends
As Table I.1 shows, Franklin demonstrated an increase in assets during the
four year period between December 31, 1993, and December 31, 1997. Assets
increased from $84.2 million at December 31, 1993, to $91.9 million at December
31, 1994, to $103.4 million at December 31, 1995, to $106.9 million at December
31, 1996, and to $122.6 million at December 31, 1997. Earning assets reflect the
same trend, driven mainly by increases in the loan portfolio. Earning assets
were $82.5 million, $90.7 million, $101.9 million, 104.9 million and 120.3
million in 1993, 1994, 1995, 1996, and 1997, respectively. The loan portfolio
reflects an overall upward trend from $67.2 million at December 31, 1993, to
$93.95 million at December 31, 1997. In addition to an increasing loan
portfolio, asset growth has also occurred in the investment security category.
Investment securities were $8.15 million in 1993, $8.28 million in 1994, 7.23
million in 1995, $8.54 million in 1996, and 18.73 million at December 31, 1997.
At December 31, 1997, 18.22 million of the investment portfolio was classified
as "Available for Sale."
Franklin's ratio of interest earning assets ("IEA's") to interest bearing
liabilities ("IBL's") has been stable, reflecting 104.99%, 106.39%, 108.57%,
108.06%, and 108.07%, December 31, 1993, 1994, 1995, 1996, 1997, respectively
(see Table I.2). A declining average interest spread and a falling net interest
margin have served to question the sustainability of earnings. The capital
infused by the Conversion will improve profitability measured by return on
assets, but the additional capital will likely have a negative impact on the
return on equity calculation. It is unlikely that in the coming years Franklin
will have to bear expenses like the SAIF assessment in 1996. Prospects for
earnings are modest and there is an additional caveat - the high levels of
interest rate risk could present some problems in a rising interest rate
environment. Management's plan to change the composition of the loan portfolio
needs to work if spreads, net interest margins, and profits are to be increased.
Equity accounts increased steadily from $5.03 million at December 31, 1993,
to $5.96 million at December 31, 1994, and to $6.92 million in 1995. Equity
further increased to $7.45 million in 1996, and to $7.80 million at December 31,
1997. During this period, net interest margins, net interest spread, and net
interest income have been declining. Profitability has trended downward during
the entire five year period. The SAIF assessment recorded in 1996 produced a
noticeable impact on net income when the net income for the year is compared to
other years. The income for the year ended December 31, 1996, was negatively
impacted by the SAIF assessment of $491 thousand. The earnings for the 12 months
ending December 1997 included an excessive allocation to the reserve for loan
and lease losses of $117 thousand, pretax. and there was a loss recorded on the
sale of real estate of $13 thousand. In addition, the expense items for 1997,
included an expenditure of $450 thousand for two separate plans providing for
the director's retirement. The total pretax adjustments were $580 thousand ($349
thousand after tax). Adjusted income (appraisal income) for the 12 months ending
December 31, 1997, was $647 thousand. This was an increase over the previous
year, which included the SAIF assessment, but shows the downward trend in
earnings. This level of income ($647 thousand) is below the historical earnings
capacity of the Bank, which is shown in Table I.1.
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FERGUSON & COMPANY Section I.
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Asset/Liability Management
Managing interest rate risk is a major and necessary component of the
strategy used in operating a financial institution. Most of a thrift's interest
earning assets are long term, while most of the interest bearing liabilities
have short to intermediate terms to contractual maturity. To compensate,
asset/liability management techniques include:
(1) Making long-term loans with interest rates that adjust to market
periodically,
(2) Investing in assets with shorter terms to maturity,
(3) Lengthening the terms of savings deposits, and
(4) Seeking to employ any combination of the aforementioned techniques
artificially through the use of synthetic hedge instruments.
Table I.4 contains information on contractual loan maturities at December
31, 1992. However, this table must be read in conjunction with Table I.5. Table
I.4 shows that Franklin has $39.63 million in rate sensitive interest earning
assets that mature in one year or less. It further shows that Franklin also has
$88.77 million in rate sensitive interest bearing liabilities that mature in one
year. This produces a negative GAP of $49.14 million or -40.10% of total assets.
As you continue through Table I.4, the negative cumulative GAP declines in the
longer terms. Notwithstanding there is a decline in the negative Gap, the
interest rate risk exposure is significant in the first year. Table I.5, which
demonstrates the changes in the Net Portfolio Value ("NPV"), confirms the degree
of interest rate risk imbedded in the Franklin portfolio. Assuming an
instantaneous and sustained increase in interest rates of 200 basis points, the
NPV would decrease by $3.42 million, or 30%. A 400 basis point increase would
have a negative impact of $6.90 million. In combination, the two tables clearly
confirm that Franklin's interest rate risk is significant. The additional funds
obtained in the Conversion will help mitigate, to some degree, the amount of
interest rate risk, if they are not placed in long-term assets. The Plan is to
place conversion funds in short-term assets. This coupled with the management
plan to offer new loan products of shorter maturities could lower the amount of
interest rate risk.
The Bank has significant interest rate risk and would suffer significant
deterioration in profitability, as well as an erosion in the value of its
portfolio equity (NPV).
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FERGUSON & COMPANY Section I.
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Table I.1 -- SELECTED CONSOLIDATED FINANCIAL INFORMATION
1997 1996 1995 1994 1993
------- ------- ------- ------ ------
Selected Financial Condition Data:
- ----------------------------------
Total assets 122,591 106,925 103,441 91,851 84,209
Cash and cash equivalents 7,065 2,524 2,762 3,239 4,024
Loans receivable, net 93,950 92,956 90,396 77,380 67,263
Mortgage-backed securities:
Held to maturity 89 80 698 711 3,098
Available for sale 495 -- 523 530 --
Investment securities:
Held to maturity 510 1,118 3,934 4,954 8,151
Available for sale 18,220 7,423 3,291 3,330 --
Deposits 112,754 94,339 88,795 81,653 77,929
Total borrowings -- 3,700 5,800 2,800 --
Total equity 7,800 7,450 6,920 5,958 5,030
Selected Operations Data:
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Total interest income 7,972 7,775 7,127 6,129 6,022
Total interest expense 4,837 4,681 4,164 3,027 2,926
------- ------- ------- ------ ------
Net interest income 3,135 3,094 2,963 3,102 3,096
Provision for loan losses 150 33 31 14 1
------- ------- ------- ------ ------
Net interest income after
Prov. for loan losses 2,985 3,061 2,932 3,088 3,095
Fees and service charges 150 148 140 127 123
Gain on sales of securities 1 -- -- -- 2
Other non-interest income -- 13 12 7 --
------- ------- ------- ------ ------
Total non-interest income 182 161 152 134 133
Total non-interest expense 2,668 2,441 1,873 1,757 1,720
------- ------- ------- ------ ------
Income before taxes 499 781 1,211 1,465 1,508
Income tax provision 201 312 484 564 590
Extraordinary item -- -- -- -- (102)
------- ------- ------- ------ ------
Net income 298 469 727 901 816
======= ======= ======= ====== ======
Source: Offering Circular
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Table I.2 -- Selected Operating Ratios and Other Data
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
Selected Financial Ratios & Other Data:
- ---------------------------------------
Performance Ratios:
Return on assets (ratio of net income
to average total assets) 0.27% 0.44% 0.75% 1.02% 0.98%
Return on equity (ratio of net income
to average equity) 3.97% 6.79% 12.02% 16.40% 17.66%
Interest rate spread information:
Average during period 2.59% 2.64% 2.81% 3.46% 3.75%
End of period 2.42% 2.75% 2.77% 3.28% 3.62%
Net interest margin 2.95% 3.00% 3.19% 3.69% 3.94%
Ratio of operating expense to average
total assets 2.42% 2.29% 1.94% 1.99% 2.07%
Efficiency ratio 80.43% 74.99% 60.13% 54.30% 53.27%
Ratio of average interest-earning assets
to average interest-bearing liabilities 108.07% 108.06% 108.57% 106.39% 104.99%
Asset Quality Ratios:
Non-performing assets to total assets 0.05% 0.43% 0.13% 0.02% 0.09%
Allowance for loan losses to
non-performing loans 618.46% 58.35% 172.93% 1152.94% 233.33%
Allowance for loan losses to gross loans 0.43% 0.29% 0.25% 0.25% 0.27%
Capital Ratios:
Equity to total assets at end of period 6.36% 6.97% 6.69% 6.49% 5.97%
Average equity to average assets 6.80% 6.48% 6.25% 6.23% 5.55%
Other Data:
Number of full-service offices 2 2 2 2 2
Source: Offering Circular
7
FERGUSON & COMPANY Section I.
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Table I.3 -- Weighted Average Yields Earned/Rates Paid
At December 31 of Years Indicated
1997 1996 1995 1994 1993
------- ------- ------- ------ ------
Loans 7.74% 7.74% 7.85% 7.68% 7.45%
- -----
Principal 94,415 93,225 90,626 77,577 67,445
Projected interest 7,308 7,214 7,117 5,961 5,026
Securities 6.45% 6.37% 6.42% 6.21% 6.59%
- ----------
Book value 18,680 8,592 8,010 8,204 8,151
Projected interest 1,205 547 514 509 537
Fed funds sold 6.00% 0.00% 0.00% 0.00% 2.88%
- --------------
Principal 3,900 -- -- -- 500
Projected interest 234 -- -- -- 14
Other interest-earning deposits 6.47% 6.50% 4.86% 5.90% 2.79%
- -------------------------------
Principal 1,394 1,878 2,227 2,551 2,899
Projected interest 90 122 108 151 81
Total asset principal 118,389 103,695 100,863 88,332 78,995
Total asset projected earnings 8,837 7,884 7,740 6,621 5,658
Yield 7.46% 7.60% 7.67% 7.50% 7.16%
- -----
Deposits 5.04% 4.77% 4.83% 4.15% 3.54%
- --------
Principal 112,754 94,339 88,795 81,653 77,929
Projected interest 5,683 4,500 4,289 3,389 2,759
Fed funds purchased 0.00% 7.00% 6.06% 6.00% 0.00%
- -------------------
Principal -- 3,700 5,800 2,800 --
Projected interest -- 259 351 168 --
Total liability principal 112,754 98,039 94,595 77,929
84,453
Total liability projected expense 5,683 4,759 4,640 3,557 2,759
Cost 5.04% 4.85% 4.91% 4.21% 3.54%
Spread 2.42% 2.75% 2.77% 3.28% 3.62%
Source: Offering circular
8
FERGUSON & COMPANY Section I.
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Table I.4 -- Interest Rate Sensitivity Analysis
As of December 31, 1997 (*)
----------------------------------
One Over Over
Year One Three
Or To To
LESS 3 Years 5 Years
-------- -------- --------
(In Thousands)
Cumulative RSA $ 39,630 $ 72,826 $ 97,128
Cumulative RSL 88,773 107,193 109,516
-------- -------- --------
Cumulative Gap $(49,143) $(34,367) $(12,388)
-------- -------- --------
Cumulative GAP/Assets -40.10% -28.04% -10.00%
-------- -------- --------
(*) Most recent information available at writing.
Source: Illinois Office of Banks and Real Estate
Table I.5 -- Interest Rate Sensitivity
--------------------------------------
Net Portfolio Value
As of December 31, 1997
$ Change % Change
Changes (In Basis Points) In In
in Interest Rates (1) $ Amount NPV NPV
------------------------- -------------------------------
(Dollars in Thousands)
+400 BP $ 4,351 $-6,903 -61%
+300 BP 6,250 -5,004 -44%
+200 BP 7,839 -3,415 -30%
+100 BP 9,825 -1,429 -13%
0 BP 11,254 0
-100 BP 11,071 -193 -2%
-200 BP 12,539 1,285 11%
-300 BP 11,792 538 5%
-400 BP 12,770 1,516 13%
(1) Assumes an instantaneous and sustained uniform change in interest
rates at all maturities.
Source: Illinois officer of Banks and Real Estate
9
FERGUSON & COMPANY Section I.
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Income and Expense Trends
Franklin was profitable for the five years ending December 31, 1997.
Profits stated as a return on average assets have been in decline. Return on
average assets was 0.98%, 1.02%, 0.75%, 0.44%, and 0.27%, at December 31, 1993,
1994, 1995, 1996, 1997, respectively (see Table I.2). As discussed earlier, this
earnings performance is below thrift peer average and reflects the shrinking net
interest spreads and net interest margins. In addition, having the lack of
ability to reprice in excess of 50% of the loan portfolio compounds to the
overall lack of profitability. The earnings for the year ending December 31,
1996, is one of the lowest in the five years reported above, and that was the
period that absorbed the SAIF assessment. The adjusted earnings (appraisal
earnings) for 1997 are better than 1996, but reflect the general downward trend
in earnings. The ability to generate core earnings will improve with the
anticipated infusion of capital generated by the Conversion. It is likely that
Franklin will continue to have lower than peer's average earnings until the
composition of the loan portfolio is completed
Regulatory Capital Requirements
As Table I.6 demonstrates, Franklin meets all regulatory capital
requirements and meets the regulatory definition of a "Well Capitalized"
institution. Moreover, the additional capital raised in the stock conversion
will add to the existing capital cushion.
Table I.6 -- Regulatory Capital Compliance
December 31, 1997
Capital
------------------------------------------
Excess
Required Actual (Deficit)
-------- ------ ---------
(In thousands)
GAAP Capital $7,800
Tangible Capital $1,830 $7,426 $5,596
Core Capital $3,659 $7,426 $3,767
Risk-based Capital $5,574 $7,828 $2,254
Source: Franklin's unaudited financial statements, and F&C calculations.
Lending
Table I.7 provides an analysis of the Bank's loan portfolio by type of loan
security. This analysis shows that Franklin's loan composition still reflects a
commitment to one-to-four-family dwelling loans. The concentration of assets in
the residential lending market has played a significant part in the lowering of
spreads and net interest margins. As many of the fixed rate loans refinance the
net income decreased at faster rate than the interest expense on the deposit
base decreased. This is compounded by strong competition in the local market for
deposits.
Table I.8 provides information with respect to loan originations,
purchases, and repayments. It also clearly shows the dependency upon
one-to-four-family for portfolio volume. Moreover, the table relates the impact
upon the types of loans originated by changing interest rates. In the year ended
December 31, 1995, the Bank originated $30.2 million in loans. As rates fell in
the years ending December 31, 1996, and 1997, we can see the impact of the
refinancing activity. Fixed rate loans were practically double the volume of
adjustable rate loans. The only conclusion that can be drawn from the
information in Table I.8 is that the strategy of changing the portfolio
composition is correct and should be implemented.
10
FERGUSON & COMPANY Section I.
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Table I.7 -- Loan Portfolio Composition
At December 31,
--------------------------------------
1997 1996
----------------- -----------------
Amount Percent Amount Percent
------ ------- ------ -------
(Dollars in thousands)
Mortgage Loans:
One- to four-family 78,745 83.70% 76,681 82.50%
Construction 0 0 0 0
Land 0 0 0 0
--------------------------------------
Total mortgage loans 78,745 83.70 76,681 82.50%
--------------------------------------
Consumer Loans:
Home equity and second mortgage 14,340 15.24% 15,184 16.34%
Automobile 350 0.37% 160 0.17%
Loans secured by deposits 99 0.11% 92 0.10%
Home improvement loans 161 0.17% 251 0.27%
Other 386 0.41% 584 0.63%
--------------------------------------
Sub Total 15,336 16.30% 16,271 17.50%
--------------------------------------
Total loans 94,081 100.00% 92,952 100.00%
======================================
Less:
Undisbursed portions of loans in process 0 0
Net deferred loans fees -271 -273
Allowance for loan losses 402 269
------ ------
Total loans receivable, net 93,950 92,956
====== ======
Source: Offering Circular
Table I.8 below clearly demonstrates why Franklin can currently only be
considered a traditional thrift. The information reveals that residential loans
are the major portion of the loan portfolio. Fixed rate loans are originated at
a rate nearly two times that of the adjustable rate loans. Management states
that competitive pressures limit the availability of adjustable loan product. In
addition, customers have become much more sophisticated in financial matters
adding to the problem with generating adjustable loan products. Alternative
lending products that are normally adjustable or have rapid repayments are
needed to combat the spread problem.
11
FERGUSON & COMPANY Section I.
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Table I.8 -- Loan Activity -- Origination's -- Sales -- Repayments
1997 1996 1995
-------------------------------
($ In Thousands)
Beginning of Year
1 to 4 family (includes HEL and HIL) 92,116 90,156 77,181
Consumer 836 490 430
Commercial -- -- --
Other items (fees, AFLL) 4 (250) (231)
-------------------------------
92,956 90,396 77,380
Originations -- adjustable
1 to 4 family (includes HEL and HIL) 5,086 7,084 8,057
Consumer 25 -- --
Commercial -- -- --
-------------------------------
5,111 7,084 8,057
Originations -- fixed
1 to 4 family (includes HEL and HIL) 10,550 12,744 21,354
Consumer 263 435 144
Commercial -- -- --
-------------------------------
10,813 13,179 21,498
Purchases
1 to 4 family (inc. HEL and HIL) 4,091 -- --
4,091 -- --
Change in
Loans in process -- 227 (104)
Deferred loan costs (2) 66 119
Allowance (133) (39) (34)
-------------------------------
(135) 254 (19)
Sales and repayments (force)
1 to 4 family (includes HEL and HIL) (14,707) (17,581) (16,436)
Consumer (289) (89) (84)
Commercial -- -- --
1 to 4 family sold (3,890) (287) --
-------------------------------
(18,886) (17,957) (16,520)
-------------------------------
End of Year
1 to 4 family (inc. HEL and HIL) 93,246 92,116 90,156
Consumer 835 836 490
Commercial -- -- --
Other items (fees, AFLL) (131) 4 (250)
-------------------------------
93,950 92,956 90,396
Total change in net loans 994 2,560 13,016
===============================
12
FERGUSON & COMPANY Section I.
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Table I.9 provides rates, yields, and average balances for the three years
ended December 31, 1995, 1995, and 1997. Net interest income increased from
$2.96 million at December 31, 1995, to $3.09 million at December 31, 1996. From
December 31, 1996, to December 31, 1997, it increased once again to $3.14
million. Increasing dollar amounts of income belie the actual profitability of
the institution. Net interest margins and net interest spreads have been on the
decline. Net interest spreads were 2.81%, 2.64%, and 2.59%, at the end of
December 31, 1995, 1996, and 1997, respectively. There has been a stable
relationship between interest earning assets ("IEA's"), and interest bearing
liabilities ("IBL's"). In 1995, IEA's were 108.57% of IBL's. In 1996, they were
108.06% and 108.07% in 1997. The impact of lower priced loan transactions being
funded with deposits that have a rising cost bring to question the
sustainability of the current level of profitability.
13
FERGUSON & COMPANY Section I.
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Table I.9 -- Rates, Volumes and Average Yields
1997 1996 1995
--------------------------- --------------------------- ---------------------------
Average Average Average Average Average Average
Balance Interest Rate Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- ------- ------- -------- -------
INTEREST-EARNING ASSETS ("IEA")
- -------------------------------
Loans receivable 93,732 7,209 7.69% 93,285 7,196 7.71% 82,909 6,506 7.85%
Investment securities 10,629 688 6.47% 8,866 562 6.34% 9,443 600 6.35%
Federal funds sold 1,064 9 5.55% -- -- 0.00% -- -- 0.00%
Other IEA's (FHLB Time) 725 16 2.21% 818 17 2.08% 479 21 4.38%
------------------------- ------------------------- ------------------------
106,150 7,972 7.51% 102,969 7,775 7.55% 92,831 7,127 7.68%
Non-interest earning assets 4,229 3,727 3,905
------- ------- ------
Total assets 110,379 106,696 96,736
======= ======= ======
INTEREST-BEARING LIAB. ("IBL's)
- -------------------------------
Savings and certificates of deposit 83,262 4,289 5.15% 76,128 3,970 5.21% 71,945 3,695 5.14%
Demand and NOW deposits 10,917 321 2.94% 12,012 315 2.62% 307 2.82%
FHLB advances (GL 221003 & 4420) -- -- 0.00% 1,834 104 5.67% -- -- 0.00%
Federal funds purchased (GL 222002 & 4421) 4,048 227 5.61% 5,311 292 5.50% 2,694 162 6.01%
------------------------- ------------------------- ------------------------
98,227 4,837 4.92% 95,285 4,681 4.91% 85,507 4,164 4.87%
-------------- -------------- -------------
Non-interest bearing liabilities 4,641 4,502 5,180
------- ------- ------
Total liabilities 102,868 99,787 90,687
Equity 7,511 6,909 6,049
------- ------- ------
Total liabilities and equity 110,379 106,696 96,736
======= ======= ======
Net Interest/Spread $3,135 2.59% $3,094 2.64% $2,963 2.81%
============== ============== ==============
Margin 2.95% 3.00% 3.19%
==== ==== ====
IEA's IBL's 108.07% 108.06% 108.57%
====== ====== ======
14
FERGUSON & COMPANY Section I.
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Table I.10 provides a rate volume analysis, measuring differences in
interest earning assets ("IEA's") and interest bearing liabilities ("IBL's"),
and the interest rates thereon comparing the year ended December 31, 1995, with
December 31, 1996, and then comparing the year ended December 31, 1996, with
December 31, 1997. The table shows the effect of the changes in interest income
and funding cost between 1995 and 1996 produced an increase in net interest
income of $131 thousand ($3,094 - $2,963) shown in Table I.9. Creating that
increase was total change in interest income of $648 thousand, that was due to
an increase in income of $774 thousand due to volume, and a negative change of
$127 thousand due to rates. On the expense side, interest expense increased $515
thousand for the same period. That increase was the result of an increase in
volume of $497 thousand and an increase in rates of $20 thousand. The results
for the 1995-1996 period were an increase of $131 thousand ($648 thousand - $517
thousand).
The period between 1996 and 1997 shows an increase in income of $41
thousand ($3,094 - $2,963) shown in Table I.9. That increase created a total
change in interest income of $197 thousand that was due to an increase in
interest income of $205 thousand due to volume and a decrease in income of $8
thousand due to rates. The offsetting interest expense had an increase of $156
thousand, which was the result of an increase in interest expense of $163
thousand due to increased volumes, and a negative $7 thousand that was due to
rates. The result for the 1996-1997 period was an increase of $41 thousand ($197
thousand - $156 thousand).
Table I.10 -- Rate Volume Analysis
1997-1996 1996-1995
------------------------ ------------------------
Change Change Change Change
Total Due To Due To Total Due To Due To
INTEREST-EARNING ASSETS Change Volume Rate Change Volume Rate
- ----------------------- ------ ------ ------ ------ ------ ------
Loans receivable 13 34 (21) 690 802 (112)
Investment securities 126 114 12 (38) (37) (1)
Federal funds sold 59 59 -- -- -- --
Other interest-earning assets (FHLB Time) (1) (2) 1 (4) 10 (14)
------------------------ ------------------------
197 205 (8) 648 775 (127)
INTEREST-BEARING LIABILITIES
- ----------------------------
Savings and certificates of deposit 319 368 (49) 275 217 58
Demand and NOW deposits 6 (30) 36 8 31 (23)
FHLB advances (104) (104) -- 104 104 --
Federal funds purchased (65) (71) 6 -- 145 (15)
------------------------ ------------------------
156 163 (7) 517 497 20
Net Interest/Spread 41 42 (1) 131 278 (147)
======================== ========================
15
FERGUSON & COMPANY Section I.
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Table I.11 - Non-Performing Assets
1997 1996 1995 1994 1993
------- ------- ------- ------- ------
Nonaccrual loans:
1-4 -- -- -- -- 9
Multi- family -- -- -- -- --
Construction -- -- -- -- --
Consumer -- -- -- -- --
------- ------- ------- ------- ------
-- -- -- -- 9
------- ------- ------- ------- ------
Accruing delinquent more than 90 days:
1-4 65 155 133 17 69
Multi- family -- -- -- -- --
Construction -- -- -- -- --
Consumer -- -- -- -- --
------- ------- ------- ------- ------
65 155 133 17 69
------- ------- ------- ------- ------
Foreclosed assets:
1-4 -- 306 -- -- --
Multi- family -- -- -- -- --
Construction -- -- -- -- --
Consumer -- -- -- -- --
------- ------- ------- ------- ------
-- 306 -- -- --
------- ------- ------- ------- ------
Total nonperforming assets 65 461 133 17 78
======= ======= ======= ======= ======
Total assets 122,591 106,925 103,441 91,851 84,209
Allowance for loan losses 402 269 230 196 182
------- ------- ------- ------- ------
Non-performing assets to total assets 0.05% 0.43% 0.13% 0.02% 0.09%
------- ------- ------- ------- ------
Allowance for loan losses/non-performing loans 618.46% 58.35% 172.93% 1152.94% 233.33%
------- ------- ------- ------- ------
Source: Offering Circular
Non-performing Assets
As shown in Table I.11 above Franklin's total non-performing loans as of
December 31, 1997, were a nominal $65 thousand and represented 0.05% of total
loans. All of the non-performing loans as of that date were secured. The level
of non-performing assets does not appear to be a significant threat to the
capitalization or future earnings of the institution.
16
FERGUSON & COMPANY Section I.
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Loan Loss Allowance
The following table (Table I.12) sets forth an analysis of the Bank's
allowance for possible loan losses for the periods indicated. As of December 31,
1997, the provision for loan and lease losses was equal to 0.43% of gross loans
and 6.18 times non-performing loans. Considering the conservative underwriting
of Management and the management of credit risk in the recent past, the
Allowance for Loan and Lease Losses is adequate.
Significant increases to the loan loss reserves were made during the year
ended December 31, 1997. These increases in loan loss reserves were not dictated
by historical experience or anticipated losses, but instead were provisions made
to adjust the percentage to levels that were more near a banking peer average.
17
FERGUSON & COMPANY Section I.
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Table I.12 -- Analysis of Allowance for Loan Losses
Year Ended December 31,
----------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
(Dollars in thousands)
Allowance at beginning of period. $269 $230 $196 $182 $181
Provision for loan losses 150 33 32 14 1
Recoveries
Mortgage loans
One-to four-family -- -- -- -- --
Commercial -- 6 2 -- --
Construction -- -- -- -- --
Land -- -- -- -- --
Consumer loans
Home equity and second mortgage -- -- -- -- --
Automobile -- -- -- -- --
Loans secured by deposit accounts -- -- -- -- --
Unsecured -- -- -- -- --
Other -- -- -- -- --
Commercial business loans -- -- -- -- --
------ ------ ------ ------ ------
Total recoveries -- 6 2 -- --
------ ------ ------ ------ ------
Charge-offs
Mortgage loans
One-to four-family -- -- -- -- --
Multi-family -- -- -- -- --
Commercial -- -- -- -- --
Construction -- -- -- -- --
Land -- -- -- -- --
Consumer loans
Home equity and second mortgage 17 -- -- -- --
Automobile -- -- -- -- --
Credit card -- -- -- -- --
Loans secured by deposit accounts -- -- -- -- --
Other -- -- -- -- --
Commercial business loans -- -- -- -- --
------ ------ ------ ------ ------
Total charge-offs 17 -- -- -- --
------ ------ ------ ------ ------
Net charge-offs 17 -6 -2 -- --
------ ------ ------ ------ ------
Balance at end of period $402 $269 $230 $196 $182
------ ------ ------ ------ ------
Allowance for loan losses as a % of
nonperforming loans at the end of the period 618.45% 173.55% 172.93% 1152.9% 233.33%
Source: Offering Circular and Audited Financial Statements of Franklin
18
FERGUSON & COMPANY Section I.
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Table I.13 shows the allocation of the loan loss allowance among the
various loan categories for the years ending December 31, 1993, 1994, 1995,
1996, and 1997.
Table I.13 -- Allocation of Loan Loss Allowance
At December 31,
----------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993
------------------ ------------------ ------------------ ------------------ ------------------
Percent Percent Percent Percent Percent
of Loans of Loans of Loans of Loans of Loans
In Category In Category In Category In Category In Category
to Total to Total to Total to Total to Total
Amount Loans Amount Loans Amount Loans Amount Loans Amount Loans
------ ----------- ------ ----------- ------ ----------- ------ ----------- ------ -----------
($ In Thousands)
Mortgage loans: One-to four-family $158 83.70% $155 82.50% $151 83.50%
$130 83.24% $114 84.17% Multi-family Commercial Construction 1 0.40% Land
Nonmortgage loans Consumer loans 9 0.89% 10 0.90% 7 0.54% 6 1.18% 5 0.46% Home
equity and second mortgage 72 15.41% 76 16.60% 72 15.96% 60 15.58% 50 14.97%
Automobile Credit card Loans secured by deposits Unsecured Other Commercial
business loans Unallocated 163 -- 28 -- 0 0 -- 0 11 -- ---- ------ ---- ------
- ---- ------ ---- ------ ---- ------ Total allowance for loan losses $402 100.00%
$269 100.00% $230 100.00% $196 100.00% $181 100.00% Source: Offering
Circular
19
FERGUSON & COMPANY Section I.
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The preceding table (Table I.13) allocates the allowance for loan losses by
loan category at the dates indicated. The allocation of the allowance to each
category is not necessarily indicative of future losses and does not restrict
the use of the allowance to absorb losses in any other category.
Mortgage-Backed Securities and Investments
Table I.14 provides a breakdown of mortgage-backed securities and
investments as of December 31, 1997.
Table I.14 -- Investments
December 31,1997 December 31,1996 December 31,1995
-------------------- -------------------- --------------------
Carrying Carrying Carrying
Value % of Total Value % of Total Value % of Total
-------- ---------- -------- ---------- -------- ----------
(Dollars in Thousands)
Securities Held to Maturity:
U.S. government securities -- 0.00% 1,017 12.90% 500 7.44%
Federal agency obligations 510 2.83% -- 0.00% 3,333 49.62%
Municipal bonds -- 0.00% 101 1.28% 101 1.50%
Securities Available for Sale:
U.S. government securities -- 0.00% -- 0.00% -- 0.00%
Federal agency obligations 17,536 97.17% 6,765 85.82% 2,783 41.43%
Municipal bonds -- 0.00% -- 0.00% -- 0.00%
18,046 100.00% 7,883 100.00% 6,717 100.00%
Other interest-earning assets:
Interest bearing deposits banks 2,611 32.08% 1,878 54.34% 2,227 63.12%
FHLB stock 944 11.60% 920 26.62% 793 22.48%
FHLMC stock 652 8.01% 626 18.11% 476 13.49%
US League Insurance stock 32 0.39% 32 0.93% 32 0.91%
Federal funds sold 3,900 47.92% -- 0.00% -- 0.00%
Total 8,139 100.00% 3,456 100.00% 3,528 100.00%
Mortgage-backed securities:
Held to Maturity
FNMA 79 13.76% 80 13.63% 81 6.63%
FHLMC -- 0.00% -- 0.00% 617 50.53%
79 13.76% 80 13.63% 698 57.17%
Available for Sale
FNMA -- 0.00% -- 0.00% -- 0.00%
FHLMC 495 86.24% 507 86.37% 523 42.83%
495 86.24% 507 86.37% 523 42.83%
Total 574 100.00% 587 100.00% 1,221 100.00%
Source: Offering Circular
20
FERGUSON & COMPANY Section I.
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Table I.14a -- Contractual Maturities of the Bank's Securities
At December 31, 1997
----------------------------------
Less Than 1 to 5 5 to 10 Total Securities
1 Year Years Years ----------------------
Book Value Book Value Book Value Book Value Fair Value
---------- ---------- ---------- ---------- ----------
(In Thousands)
Federal Agency Obligations $301 $16,738 $1,000 $18,039 $18,063
Mortgage-backed Securities -- 587 -- 587 574
Total Investment Securities $301 $17,325 $1,000 $18,626 $18,637
Weighted Average Yield 5.36% 6.49% 6.60% 6.48%
Source: Offering Circular
Table I.14 is notable for showing that as December 31, 1997, the portion of
the investment portfolio that was classified as "Held to Maturity" totaled $510
thousand or 2.83%% of investment securities. Investment securities that were
classified as "Available for Sale" totaled $17.54 million or 97.17% of the
securities portfolio. Total MBS' were only $574 thousand and 86.24% were
classified as "Available for Sale." At December 31, 1997, Franklin had no
trading securities. Having a large portion of all investments classified
"Available for Sale" enhances actual liquidity of the institution and provides
Management with the flexibility to properly manage the investment portfolio of
the Bank. All securities classified as "Available for Sale" are carried at their
fair value as of December 31, 1997. In addition, as of December 31, 1997, the
market value of the portfolio was $18.64 million (see Table I.14a.
Management has not committed a significant amount of its assets to
Mortgage-Backed Securities ("MBS's"). This is due mainly to the strong demand
for loans in the primary assessment area. The majority U.S. Government
securities and agencies have a maturity that is greater than one year but less
than five years. The deposits in domestic banks and Fed funds have maturities of
less than one year.
21
FERGUSON & COMPANY Section I.
- ------------------ ----------
Table I.15 -- Deposit Portfolio
Deposits programs in the Bank at December 31, 1997, 1996 and 1995
1997 1996 1995
------------------ ------------------ ------------------
Percent Percent Percent
Amount Of Total Amount Of Total Amount Of Total
------ -------- ------ -------- ------ --------
(Dollars in Thousands)
Transaction & Savings Deposits
- ------------------------------
Passbook accounts $ 18,126 16.08% $18,029 19.11% $17,913 20.17%
NOW accounts 9,033 8.01% 7,279 7.72% 7,741 8.72%
Money market accounts 7,840 6.95% 5,011 5.31% 6,000 6.76%
Total non-certificates 34,999 31.04% 30,319 32.14% 31,654 35.65%
Total Certificates 77,755 68.96% 64,020 67.86% 57,141 64.35%
Total Accounts $112,754 100.00% $94,339 100.00% $88,795 100.00%
Source: Offering circular
Savings Deposit
The Bank offers a variety of deposit products that have a wide range of
interest rates and terms. As the general customer base continues to become more
sophisticated, Franklin is likely to become more susceptible to short-term
interest rate changes. The Bank experiences a higher cost of funds than its
peers, mainly due to its mix of transaction accounts and certificate accounts.
In addition, in the recent past, Franklin has been "paying up" for new accounts
(mainly certificates) and then lowering rates. They have been effective in
retaining a high percent of the accounts, after lowering the rates. The success
is noted, but the "paying up" portion of the equation has taken its toll on
profitability.
At December 31, 1997, Franklin's deposit portfolio of $112.75 million was
composed as follows: passbook savings--$18.12 million, or 16.08%; NOW
accounts--$9.03 million, or 8.01%%, and certificate accounts--$77.76 million, or
68.96%. Certificates totaling $58.66 million, or 75.44% of total certificates,
mature in less than one year.
22
FERGUSON & COMPANY Section I.
- ------------------ ----------
Franklin has limited dependency on jumbo certificates of deposit. At
December 1997, the Bank had $11.76 million in certificates that were issued for
$100 thousand or more, or 10.43% of its total deposits (see Table I.16). The
jumbo dependency is not considered excessive.
Table I.16 -- Jumbo CD's at December 31, 1997
Time Deposits over $100,000 -- Maturity Schedules
Certificates of
Maturity Period Deposits
--------------- ---------------
Three months or less $ 3,144
Over three through six mo. 3,478
Over six through 12 months 2,991
Over 12 months 2,153
=======
$11,766
=======
Source: Offering circular
Borrowings
At December 31, 1997, Franklin was a member of FHLB of Chicago and had the
availability of advances from the FHLB. However, no advances were used. The Bank
did at December 31, 1997 have $3.9 million in Federal funds sold. Advances are
not being utilized at this time, but remain a viable alternative source of
funding to the Bank.
Subsidiaries
At December 31, 1997, Franklin had no subsidiaries.
Legal Proceedings
From time to time, Franklin becomes involved in legal proceedings
principally related to the enforcement of its security interest in real estate
loans. In the opinion of Management of the Bank, no legal proceedings are in
process or pending that would have a material effect on Franklin's financial
position, results of operations, or liquidity.
EARNINGS CAPACITY OF THE INSTITUTION
As in any interest sensitive industry, the interest rate environment will
affect the future earnings capacity of Franklin. Historically, the thrift
industry has performed at less profitable levels in periods of rising interest
rates. This performance is due principally to the general composition of the
assets and the limited repricing opportunities afforded even the adjustable rate
loans. The converse earnings situation (falling rates) does not afford the same
degree of profitability potential for thrifts due to the tendency of borrowers
to refinance both high rate loans, fixed rate loans, and adjustable loans as
rates decline.
Franklin is no exception to the aforementioned paradox. However, with its
current asset and liability structure, the effect of rising interest rates will
have less negative impact on earnings. Management's strategy of offering an
array of loan products that provide additional repricing opportunities through
the cash flow of payments or in the adjustability of rates will mitigate the
effects of interest rate risk, and help sustain the Bank's profitability.
23
FERGUSON & COMPANY Section I.
- ------------------ ----------
The addition of capital through the conversion will allow Franklin to grow.
As growth is attained, the leverage of that new capital should, from a ratio of
expenses to total assets standpoint, reduce the operating expense ratio.
However, growth and additional leverage will likely be well controlled to
maintain the current acceptable risk levels inherent in the Bank's asset base.
Asset-Size-Efficiency of Asset Utilization
At its current size and in its current asset configuration, Franklin is an
efficient operation. With total assets of approximately $122.59 million,
Franklin has 31 full time equivalent employees. Franklin does not have the
infrastructure that will be needed to complete the changes now anticipated by
Management. Consequently, some employee growth is anticipated.
Intangible Values
Franklin's greatest intangible value lies in its loyal deposit base, its
loan portfolio, its excellent staff of officers and employees, and its history
of service to its community. Franklin has a 105-year history of sound
operations, well-managed growth, and earnings. The Bank currently has 5.53% of
the deposit market in its area, and it has the ability to increase market share
(see Table II.3 in Section II).
Franklin has no significant intangible values beyond a small amount of loan
service rights (valued at $212 thousand) that could be attributed to
unrecognized asset gains.
Effect of Government Regulations
Government regulations will have the greatest impact in the area of cost of
compliance and reporting. The Conversion will create an additional layer of
regulations and reporting, and thereby increase the cost to the Bank. Moreover,
no future plans currently exist to make additional acquisitions, purchase
additional branches, or complicate operations with matters that would add to
reporting and regulatory compliance. However, economic situations change, and if
an appropriate opportunity arises, it will be considered, and a proper request
will be made of the regulators, if necessary.
Office Facilities
Franklin's main office is an adequately maintained facility. Table I.17
provides information on all of the Bank's offices. The Bank's facilities are
currently adequate for the convenience and needs of the Bank's customer base.
Table I.17 -- Office Facilities and Locations
Year Square Net Book Owned or
Physical address Opened Footage Value (1) Leased
- ---------------- ------ ------- --------- --------
($000's)
Main Office:
- ------------
14 North Dryden Avenue, Arlington Heights, IL 1977 8,345 $184 Leased
Branch Office:
- --------------
3148 Kirchoff Rd. Rolling Meadows, IL 1991 3,300 20 Leased
----
Total $204
(1) Cost less accumulated depreciation and amortization of leasehold
improvements.
Source: Franklin's unaudited financial statement and the Offering Circular.
24
SECTION II
MARKET AREA
FERGUSON & COMPANY Section II.
- ------------------ -----------
II. MARKET AREA
DEMOGRAPHICS
Franklin operates from its main office located at 14 North Dryden Road in
Arlington Heights, Illinois. In addition to its home office, it has one branch
office that is located at 3148Kirchoff Road, Rolling Meadows, Illinois. Rolling
Meadows is contiguous to Arlington Heights and both are northwestern suburbs of
the City of Chicago, which is in the northeastern part of Illinois.
Franklin considers its primary Assessment Area to be the two Zip Codes in
which Arlington Heights and Rolling Meadows are located. These Zip Codes are
60004 and 60008. Table II.1 below, presents historical and projected trends for
the United States, Illinois, Cook County, Zip Code 60004, and Zip Code 60008.
The information addresses population, income, employment, and housing trends.
As indicated in Table II.1 below, the State of Illinois, Cook County, Zip
Code 60004, and Zip Code 60008 have experienced nominal growth rates in terms of
population, when compared to the growth rate of the United States. The State of
Illinois experienced a growth rate from 1990 to 1996 of 4.13%, which is lower
than the recorded growth rate of 6.67% for the United States. Within the trade
area, Cook County grew 0.61%, Zip Code 60004 grew 1.56% and Zip Code 60008 grew
3.03%. Future prospects are less than historical growth rates. Between 1996 and
2001, the State is expected to grow 3.18%; Cook County is expected to grow
0.49%, and the two Zip Codes are expected to grow 0.92% and 1.62%, respectively.
Growth rates between 1996 and 2001 are not as good as those recorded in the
previous six years, but the growth will continue, and is not considered bad for
an area that has been established for a considerable length of time.
Another important demographic factor about Franklin's Assessment Area is
the Household Income Estimates for 2001. The future prospects of this portion of
the economic indicators are dismal at first glance. All of the Assessment Area
of Franklin is anticipating a drop in Household Income. Cook County estimates a
decline of 6.36%, there is a 7.27% and a 7.07% decline expected for Zip codes
60004 and 60008, respectively. These economic predictions reflect the general
conditions that have occurred in other large metropolitan areas. Mitigating to
some degree the anticipated loss of Household Incomes is the fact that the
primary Assessment Area of the Bank, Zip Codes 60004 and 60008, has a
disproportionate amount of its population in the higher income categories. Zip
code 60004 has 59% of its population in households that have incomes in excess
of $50,000. Zip code 60008 has 48% of its population in the same categories.
Cook County has only 34% in those categories, the State of Illinois 33% and the
U.S. 30%. This clearly indicates that the anticipated reduction in Household
Incomes will not have as great an economic impact on Franklin's Assessment Area
as a 7.0% decrease in income would have in areas of more limited incomes.
1
FERGUSON & COMPANY Section II.
- ------------------ -----------
Table II.1 -- Demographic Trends
Key Economic Indicators
United States, Illinois, Cook County, Zip Codes 60004, 60008
United State County Zip Code Zip Code
Key Economic Indicator States Illinois Cook 60004 60008
- ---------------------- ------ -------- ------ -------- --------
Total Population, 2001 Est. 278,802,003 12,281,535 5,161,249 55,342 19,689
1996-2001 Percent Change, Est. 5.09 3.18 0.49 0.92 1.62
Total Population, 1996 Est. 265,294,885 11,902,847 5,136,263 54,839 19,375
1990-96 Percent Change, Est. 6.67 4.13 0.61 1.56 3.03
Total Population, 1990 248,709,873 11,430,602 5,105,067 53,998 18,806
- ------------------------------------------------------------------------------------------------------
Household Income, 2001 Est. 33,189 34,009 34,136 52,715 44,814
1996-2001 Percent Change, Est. (3.88) (6.36) (7.15) (7.27) (7.07)
Household Income, 1996 Est. 34,530 36,318 36,764 56,850 48,221
- ------------------------------------------------------------------------------------------------------
Per Capita Income, 1990 16,738 17,337 18,013 25,206 22,231
- ------------------------------------------------------------------------------------------------------
Household Income Distribution-2001 Est. (%)
$15,000 and less 20 19 19 5 6
$15,000 - $25,000 16 15 14 7 9
$25,000 - $50,000 34 34 33 28 37
$50,000 - $100,000 24 26 26 43 38
$100,000 - $150,000 4 5 5 12 7
$150,000 and over 2 2 3 4 3
- ------------------------------------------------------------------------------------------------------
Unemployment rate, 1990 6.24 6.59 8.03 2.78 2.58
- ------------------------------------------------------------------------------------------------------
Median Age of Population, 1996 Est. 34.3 34.3 34.1 36.3 34.5
Median Age of Population, 1990 32.9 32.8 32.6 34.7 32.1
- ------------------------------------------------------------------------------------------------------
Average Housing Value, 1990 79,098 103,582 128,217 173,260 136,163
- ------------------------------------------------------------------------------------------------------
Total Households, 2001 Est. 103,293,062 4,527,174 1,911,022 20,369 7,229
1996-2001 Percent Change, Est. 5.14 3.20 0.65 1.04 1.77
Total Households, 1996 98,239,161 4,386,585 1,898,703 20,160 7,103
1990 - 96 Percent Change, Est. 6.84 4.39 1.02 1.90 3.42
Total Households, 1990 91,947,410 4,202,240 1,879,488 19,784 6,868
- ------------------------------------------------------------------------------------------------------
Total Housing Units, 1990 101,641,260 4,506,275 2,021,833 20,568 7,162
% Vacant 10.07 6.75 7.04 3.06 4.79
% Occupied 89.93 93.25 92.96 96.94 95.21
% By Owner 57.78 59.90 51.58 74.69 67.70
% By Renter 32.15 33.35 41.38 22.25 27.51
Source: Scan/US, Inc.
2
FERGUSON & COMPANY Section II.
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Illinois is one of the East North Central states of the United States. It
is bordered on the north by Wisconsin, on the northeast by Lake Michigan, on the
east by Indiana, on the south by Kentucky, and on the West by Missouri and Iowa.
Springfield is the capital of Illinois. Chicago is the largest city. Illinois is
the 25th largest state in the United States. The population estimate for 1996 is
11,853,000. Early on, Illinois was predominately an agricultural state, but is
now one of the most industrialized states in the Union. Manufacturing is the
most important economic activity. Approximately 1,000,000 people in the State
are engaged in manufacturing. In addition to manufacturing as an important
source of income, there is also trade, tourism and other services, and
government.(1)
Important to any financial institution that is in the business of financing
the construction and purchase of homes is the growth in the number of
households. Table II.1 shows that the prospects for the establishment of new
households in the trade area are good. From 1990 until 1996, all of the area
discussed above experienced an increase in the number of households created.
Growth rates were modest. Cook County saw total households increase 1.02%, Zip
code 60004 increased 1.9%, and Zip Code 60008 had an increase of 3.42%. The
largest recorded increase was in Zip Code 60008. Future increases in the number
of households created between 1996 and 2001 are not expected to be as good as
the antecedent years between 1990 and 1996. Cook County household increases are
anticipated to be 0.65%, Zip code 60004 1.04%, and Zip code 60008 1.77%. Even
modest growth levels of households present an aggressive and well managed
financial institution with multiple lending opportunities. Some of the
opportunities are the construction of new houses and commercial buildings, the
financing of the purchase of these houses and commercial buildings, consumer
goods, such as autos, boats and RV's, plus the financing of new and existing
businesses.
When home ownership is compared to the United States and the State of
Illinois, all except one of the trade areas has a higher incidence of home
ownership than the United States and the State of Illinois. Occupancy rates can
also reflect the economic viability of an area. Franklin's Assessment Area has
occupancy levels that range from a low of 92.96% up to 96.94%.
The principal sources of employment in Franklin's assessment area are shown
in Table II.2 below. On average, the major sources of employment are
manufacturing, trade, and services. The Assessment Area shows significantly more
people engaging in manufacturing activity than the State. People engaged in
trade in the Assessment Area exceed those engaged in trade in the State.
Services, the third highest employment category in the Assessment Area, is below
that of the State. The manufacturing portion of the economic base contributes to
the generous measure of the local household incomes and gives some dimension to
the stability of the local economy.
- ----------
1 Illinois, Encarta 96 Encyclopedia
3
FERGUSON & COMPANY Section II.
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Table II.2 -- EMPLOYMENT BY INDUSTRY
As of September 1996
---------------------------------------
United State of Arlington
Employment by Industry (percent) States Illinois Heights
- -------------------------------- ------ -------- ---------
Construction/Agriculture/Mining 9.5% 7.5% 5.2%
Manufacturing 17.7% 16.7% 35.6%
Transportation/Utilities 7.1% 5.6% 4.3%
Trade 21.2% 22.5% 25.8%
Finance/Insurance 6.9% 7.2% 6.3%
Services 32.7% 26.7% 21.4%
Public Administration 4.9% 13.8% 1.4%
====== ====== ======
Total 100.0% 100.0% 100.0%
====== ====== ======
Source: State of Illinois, Department of Economic Development
This information gives rise to understanding the other demographic
information. With manufacturing, trade, and services employing such high
percentages of the population and contributing to the earnings of the citizenry,
the concentration of income in the upper and middle ranges is clearer.
Obviously, on average, the population within the Assessment Area of Franklin is
better employed than the State average. This should equate to continued economic
growth, albeit modest, which should translate into more home buyers, more
consumer goods being purchased, more businesses being started, and a growing,
stable economy.
In summary, the demographics of the Assessment Area are moderately good.
The area has and is expected to have an overall growth in population. This
growth in population is being accompanied with an anticipated increase in
household income that is creating a more stable per capita income and an
anticipated increase in the number of new households that will be created. These
factors, coupled with a strong tradition of home ownership in the area, should
translate into an increased number of housing units being built and a good
market for previously owned housing. Moreover, the economic stability of the
area should provide more than an average amount of business opportunity to
Franklin. The change in business strategy that allows Franklin to participate in
more than just the business benefits of increased home ownership, should produce
varied lending opportunities in the area of consumer loans, business loans,
construction loans, development loans, and other ancillary business stimulated
by the economic growth.
Based on information publicly available on deposits as of June 30, 1996
(see Table II.3), in the Assessment Area, there are $1.61 billion in total
deposits. Banks controlled $928.3 million, credit unions $101.2 million, and
other thrifts $492.5 million. As of that date, Franklin had 5.53% of the total
deposit market, or $89.1 million.
4
FERGUSON & COMPANY Section II.
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The Bank is not a major player in the total market area that is located
within the delineated market area. But it has been able to maintain market
share. The statistics reveal success and opportunities for the institution.
Additional capital infused by the Conversion will assist the Bank in becoming
more competitive.
Table II.3 -- Market Area Deposits
As of June 30,
----------------------------------------
1996 1995 1994
---------- ---------- ----------
(Dollars in Thousands)
Ben Franklin Bank -- Total $ 89,059 $ 86,008 $ 78,897
---------- ---------- ----------
Number of Offices 2 2 2
Other Savings Associations (1) $ 492,583 $ 554,185 $ 533,049
---------- ---------- ----------
Number of Branches 8 10 10
Total Savings Association Deposits $ 581,624 $ 640,193 $ 611,946
---------- ---------- ----------
Total Number of Branches 10 12 12
Total Credit Union Deposits (2) $ 101,223 $ 96,496 $ 95,428
---------- ---------- ----------
Total Number of Branches 6 6 6
Total Bank Deposits $ 928,294 $ 808,029 $ 697,968
---------- ---------- ----------
Total Number of Branches 17 15 13
Total Market Area Deposits $1,611,159 $1,544,718 $1,405,342
========== ========== ==========
Franklin - Market Share 5.53% 5.57% 5.61%
- ----------------------- ========== ========== ==========
(1) The decline in thrift deposits between 1995 and 1996 is mainly attributable
to the sale of deposits by thrift to a commercial bank.
(2) Excluded United Airlines Employees Credit Union.
Source: BranchSource, June 30, 1996, a product of Sheshunoff Information
Services.
Reviewing economic factors in its market area can assess growth
opportunities for Franklin. The salient factors include growth trends, economic
trends, and competition from other financial institutions. We have reviewed
these factors to assess the potential for the market area. In assessing the
growth potential of Franklin, we must also assess the willingness and
flexibility of Management to respond to the competitive factors that exist in
the market area. It is our analysis that the economic environment and the
potential of the area is excellent, moreover, we feel that the current
Management team can readily realize the potential afforded by the area's
economic base. Our analysis of the economic potential and the potential of
Management has a positive effect on the valuation of the institution.
5
SECTION III
COMPARISON WITH PUBLICLY
TRADED THRIFTS
FERGUSON & COMPANY Section III.
- ------------------ ------------
III. COMPARISON WITH PUBLICLY TRADED THRIFTS
COMPARATIVE DISCUSSION
This section presents an analysis of Franklin relative to a group of 11
publicly traded thrift institutions ("Comparative Group"). Such analysis is
necessary to determine the adjustments that must be made to the pro forma market
value of Franklin's stock. Table III.1 presents a listing of the comparative
group with general information about the group. Table III.2 presents key
financial indicators relative to profitability, balance sheet composition and
strength, and risk factors. Table III.3 presents a pro forma comparison of
Franklin to the comparative group. Exhibits III and IV contain selected
financial information on Franklin and the comparative group. This information is
derived from quarterly TFR's filed with the OTS. The selection criteria and
comparison with the Comparative Group are discussed below.
Selection Criteria
Ideally, the comparative group would consist of thrifts in the same
geographic region with identical local economies, asset size, capital level,
earnings performance, asset quality, etc. However, there are few comparably
sized institutions with stock that is liquid enough to provide timely,
meaningful market values. Therefore, we have selected a group of comparatives
that are listed on either the New York Stock Exchange ("NYSE"), the American
Stock Exchange ("AMEX"), or NASDAQ. We excluded companies that are apparent
takeover targets and companies with unusual characteristics that tend to distort
both mean and median calculations. For example, we have excluded all companies
with losses during the trailing 12 months (see Exhibit II.1).
The principal source of data was SNL Securities, Charlottesville, Virginia.
There are approximately 381 publicly traded thrifts listed on NYSE, AMEX, or
NASDAQ. In developing statistics for the entire country, we eliminated certain
institutions that skewed the results, in order to make the data more meaningful:
o We eliminated companies with losses,
o We eliminated indicated acquisition targets,
o We eliminated companies with price/earnings ratios in excess of 35,
and
o We eliminated companies that had not reported as a stock institution
for one complete year.
The resulting group of approximately 260 publicly traded thrifts is
included in Exhibit II.1.
Because of the limited number of similar size thrifts with sufficient
trading volume, we refined the search looking for members of the comparative
groups among thrifts with assets between $75 million and $200 million. We found
96 in the asset size. From that group we then eliminated the following:
o Merger Targets,
o Eliminated MHC's,
o Eliminated companies with no P/E ratio,
o Eliminated companies with P/E Ratio greater than 35,
o Eliminated companies with Tangible equity less than 12%, or greater
than 24%,
o Eliminated companies with non-performing assets greater than 1%,
o Eliminated companies with loans less than 70% of assets, and
o Eliminated companies with loan servicing greater than 20% of assets.
1
FERGUSON & COMPANY Section III.
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The result was a group of 11 thrifts. Normally, we consider 10 to be the
desired sample, but provided the extra comparative in case there are changes
before this Conversion is completed. See Exhibit VI.
The selected group of comparatives has sufficient trading volume to provide
meaningful price data. Five of the comparative group members are located in the
Midwest, four in the Mid-Atlantic, and two in the Southeast. Four of the group
are located in Indiana, two in Virginia, and one each in Missouri, Arkansas,
Maryland, North Carolina, and New York. With total assets of approximately
$122.6 million, Franklin is near the group selected, which has average assets of
$141.3 million and median assets of $152.8 million.
Profitability
Using the comparison of profitability components as a percentage of average
assets and using appraisal earnings compared to the group's core earnings,
Franklin was below the comparative group in return on assets, 0.56% to 1.12%.
Franklin was below the comparative group in other operating income, 0.16% to
0.32%, and net interest income, 2.73% to 3.57%; also below the group in
operating expense, 1.80% to 2.08%, after adjusting for non-recurring expenses.
After conversion, the deployment of proceeds will provide additional income.
Franklin will then compare more favorably to the comparative group with a return
of 0.71% ROAA, at the midpoint of the appraisal range. Pro forma return on
average equity is 4.66% at the midpoint, versus a mean of 7.01%, and median of
7.81% for the comparative group. After conversion, the employment of funds and
the growth of assets and liabilities will improve the profitability of this
institution.
Balance Sheet Characteristics
The general asset composition of the Franklin is very near that of the
comparative group. Franklin has a higher level of investments with 21.51% of its
assets invested in cash, investments, and mortgage-backed securities, versus
16.17% for the comparative group. In the investment portfolio, Franklin has
21.04% in cash and investment securities, and 0.47% in mortgage backed
securities. The comparative group has 11.18% in cash and investments, and 4.99%
in mortgage backed securities. Franklin has a lower percentage of its assets in
loans at 76.63%, versus 81.28% for the comparative group. The Bank's percentage
of interest earning assets to interest bearing liabilities is lower than that of
the group. Franklin has 108.07%, and the comparative group averages 116.18%.
Franklin is considered "Well Capitalized" with 6.36% of assets in equity
capital, and the comparative group has an average of 15.14% in equity to assets.
After conversion, and after the utilization of the capital infusion for earning
assets and supporting growth, Franklin's ratio will be closer to that of the
group of comparatives. Management plans to utilize the capital from the
Conversion to increase assets and liabilities, but does not plan to lower
lending and underwriting standards. Consequently, the capital will not be
completely utilized for some time, and the ROAE will be lower until the capital
can be leveraged.
The liability side differs mainly in that the Bank has no borrowings and a
higher percentage of deposits. The Bank funds its assets with 91.98% deposits,
expressed as a percentage of total assets. On the other hand, the comparative
group has deposits of 72.80% and borrowings of 10.91%. The comparison between
the Bank's capital level and that of the comparative group will improve after
conversion. After the Conversion, the Bank's equity to assets will be 14.57%, at
the midpoint. The average equity to assets of the comparative group is 15.14%,
and the median is 14.40%.
Risk Factors
Both Franklin and the comparative group have well-controlled levels of
non-performing assets, with the Bank being lower than the comparative group,
0.05% to 0.40% of assets. Franklin's loan loss allowance is 0.43% of gross
loans, which compares favorably with the comparative group's 0.52%. In the area
of interest rate risk and the implications of one-year gap assets, Franklin and
the comparative group are far
2
FERGUSON & COMPANY Section III.
- ------------------ ------------
apart. Franklin has a negative one-year gap of 40.10%, and the group has a
positive 1.64%. Franklin's high level of interest rate risk is due mainly
because the Bank is still a fixed rate residential lender and is managing the
interest rate risk with liquid investments. The comparatives manage interest
rate risk with more adjustable loans. Both methods lower interest rate risk but
the former is more debilitating to profitability than the latter.
Summary of Financial Comparison
Based on the above discussion of operational, balance sheet, and risk
characteristics of Franklin compared with the group, we believe that Franklin's
performance is inferior to that of the comparative group. Moreover, the
profitability of Franklin is less sustainable due to the composition of the loan
portfolio and the presence of significant interest rate risk. The Bank's
appraisal profitability levels are lower than the comparative group; capital
levels are also lower than the comparative group. The conversion proceeds will
increase its capital levels near that of the comparatives, and will enhance
profitability.
FUTURE PLANS
Franklin's future plans are to remain an independent, well capitalized,
profitable institution with good asset quality, and a commitment to serving the
needs of its trade area, and emphasizing all types of lending. The new strategy,
which is reflected in the business plan, projects increased growth in commercial
real estate lending, commercial loans, consumer loans, and construction loans.
Management recognizes that it will take time to invest the proceeds of its
capital infusion in a manner consistent with its current lending and
underwriting policies. During that period of time, Management is willing to
accept a lower return on assets, as well as a lower return on equity capital.
Franklin has adhered to a measured-growth policy. In fact, the Bank has
experienced asset and liability growth in the last five years. That growth has
been supported by simultaneous growth in the equity accounts. The additional
capital raised by the sale of Common Stock will initially be used to purchase
short-term investment securities. The Bank will continue to utilize long term,
fixed rate loans, and will introduce additional loan products tailored to
shorten maturities and increase the net interest margins of the Bank. The Bank's
business plan projects that it will experience growth in loans, deposits, and
liquidity.
Franklin anticipates continued growth. It will continue to diversify the
assets of the institution. The additional capital and the continuation of the
holding company concept would make the acquisition of another institution or
branch a viable option, along with de novo branching. At this time there are no
plans for acquisition of institutions or new branches. If an economically viable
opportunity arises, proper approval will be sought from the regulatory agencies.
Increasing market penetration by increasing the number of services and
products available, coupled with expanded marketing efforts and improved
service, are the most likely methods to be employed to achieve growth.
3
FERGUSON & COMPANY Section III.
- ------------------ ------------
Table III.1 -- Comparatives General Characteristics
Total Current Current
Number Assets Stock Market
of ($000) Price Value
Ticker Short Name City State Offices Mst RctQ IPO Date ($) ($M)
- ------ ---------- ---- ----- ------- -------- -------- ------- -------
ALBC Albion Banc Corp. Albion NY 2 066,316 07/26/93 23.2500 06.012
AMFC AMB Financial Corp. Munster IN 4 100,003 04/01/96 17.6250 16.990
BFSB Bedford Bancshares Inc. Bedford VA 3 136,908 08/22/94 29.1250 33.270
CFFC Community Financial Corp. Staunton VA 4 182,879 03/30/88 30.2500 38.710
FBSI First Bancshares Inc. Mountain Grove MO 8 161,527 12/22/93 16.7500 36.970
FTF Texarkana First Financial Corp Texarkana AR 5 180,259 07/07/95 28.0000 49.270
HBS Haywood Bancshares Inc. Waynesville NC 4 152,796 12/18/87 22.2500 27.820
LOGN Logansport Financial Corp. Logansport IN 1 86,115 06/14/95 17.5000 22.070
NEIB Northeast Indiana Bancorp Huntington IN 3 190,319 06/28/95 21.1250 36.260
SFED SFS Bancorp Inc. Schenectady NY 4 174,428 06/30/95 23.7500 28.700
SOBI Sobieski Bancorp Inc. South Bend IN 3 87,553 03/31/95 21.2500 16.660
WHGB WHG Bancshares Corp. Lutherville MD 5 101,331 04/01/96 18.0000 25.000
Maximum 8 190,319 30.25 49.27
Minimum 1 86,115 16.75 16.66
Average 4 141,283 22.33 30.16
Median 4 152,796 21.25 28.70
Source: SNL Securities and F&C calculations.
4
FERGUSON & COMPANY Section III.
- ------------------ ------------
Table III.2 -- Key Financial Indicators
Comparative
Franklin Group
-------- -----------
Profitability
(% of average assets)
Net income 0.56(1) 1.12
Net interest income 2.73 3.57
Loss (recovery) provisions 0.13 0.07
Other operating income 0.16 0.32
Operating expense 1.80(2) 2.08
Core income (excluding gains
and losses on asset sales) 0.56 1.08
Balance Sheet Factors
(% of assets)
Cash and investments 21.04 11.18
Mortgage-backed securities 0.47 4.99
Loans 76.63 81.28
Savings deposits 91.98 72.80
Borrowings -- 10.91
Equity 6.36 15.14
Tangible equity 6.36 14.40
Risk Factors (%)
Earning assets/costing liabilities 108.07 116.18
Non-performing assets/assets 0.05 0.40
Loss allowance/non performing assets 618.46 278.66
Loss allowance/gross loans 0.43 0.52
One year gap/assets 40.10 1.64
(1) Based on Appraisal Earnings
(2) Adjusted for Non-recurring items.
Source: SNL Securities and F&C calculations.
5
FERGUSON & COMPANY Section III.
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Table III.3 -- Pro Forma Comparison
Converting Institution to Comparative Group
As of March 20, 1998
Price Mk Value PE P/Book P/TBook P/Assets Div Yld Assets Eq/A TEq/A EPS ROAA ROAE
Ticker Name ($) ($Mil) (X) (%) (%) (%) (%) ($000) (%) (%) ($) (%) (%)
- ------ ---- ----- -------- --- ------ ------- -------- ------- ------ ---- ----- --- ---- ----
Douglas
-------
Before Conversion N/A N/A N/A N/A N/A N/A N/A 122,591 6.36 6.36 N/A 0.56 3.91
Pro Forma Supermax 10.000 18.515 18.64 78.64 78.64 13.38 -- 138,334 17.02 17.02 0.54 0.76 4.25
Pro Forma Maximum 10.000 16.100 17.02 75.15 75.15 11.82 -- 136,209 15.72 15.72 0.59 0.74 4.45
Pro Forma Midpoint 10.000 14.000 15.48 71.54 71.54 10.42 -- 134,361 14.57 14.57 0.65 0.71 4.66
Pro Forma Minimum 10.000 11.900 13.79 67.15 67.15 8.98 -- 132,513 13.37 13.37 0.73 0.69 4.92
Comparative Group
-----------------
Averages 22.330 30.16 22.09 140.39 140.87 21.41 1.744 141,283 15.14 15.10 1.09 1.08 7.01
Medians 21.250 28.70 20.51 133.95 133.95 21.13 1.778 152,796 14.40 14.40 0.96 1.12 7.81
Illinois Public Thrifts
-----------------------
Averages 26.256 194.05 25.50 146.71 151.02 21.42 1.438 1,042,403 16.14 15.91 1.43 1.07 7.90
Medians 26.188 70.37 18.57 137.21 139.00 22.04 1.527 343,409 15.38 15.38 1.41 0.99 7.88
Midwest Region Thrifts
----------------------
Averages 23.900 139.61 21.91 166.78 171.15 20.48 1.741 707,107 13.38 13.19 1.18 1.01 8.54
Medians 21.625 42.70 20.80 147.77 149.55 19.57 1.600 223,558 11.84 11.58 1.09 0.94 7.69
All Public Thrifts
------------------
Averages 26.337 286.48 21.71 175.75 183.86 19.74 1.629 1,591,481 12.22 11.97 1.32 0.98 9.22
Medians 22.250 65.53 20.62 161.07 164.22 18.24 1.587 359,855 10.18 10.14 1.13 0.94 8.34
Comparative Group
-----------------
AMFC AMBFinancial-IN 17.625 16.99 24.82 114.97 114.97 16.99 1.589 100,003 14.77 14.77 0.71 0.71 4.39
BFSB BedfordBcshs-VA 29.125 33.27 20.51 159.33 159.33 24.30 1.923 136,908 14.52 14.52 1.42 1.19 8.34
CFFC CommunityFinl-VA 30.250 38.71 20.72 155.05 155.77 21.13 1.851 182,879 13.63 13.58 1.46 1.07 7.88
FBSI FirstBcshs-MO 16.750 36.97 20.18 157.42 157.42 22.67 0.597 161,527 14.40 14.40 0.83 1.12 8.06
FTF TexarkanaFirst-AR 28.000 49.27 16.09 180.41 180.41 27.34 2.000 180,259 15.15 15.15 1.74 1.71 10.91
HBS HaywoodBcshs-NC 22.250 27.82 14.26 128.39 132.92 18.21 2.697 152,796 14.18 13.77 1.56 1.37 9.41
LOGN LogansprtFinl-IN 17.500 22.07 18.23 133.38 133.38 25.62 2.286 86,115 19.21 19.21 0.96 1.53 7.81
NEIB NEIndianaBncp-IN 21.125 36.26 17.46 136.20 136.20 19.57 1.609 190,319 14.37 14.37 1.21 1.20 7.78
SFED SFSBancorp-NY 23.750 28.70 26.39 133.95 133.95 16.45 1.347 174,428 12.29 12.29 0.90 0.61 4.87
SOBI SobieskiBancorp-IN 21.250 16.66 32.20 119.72 119.72 18.55 1.506 87,553 14.39 14.39 0.66 0.61 3.95
WHGB WHGBancshares-MD 18.000 25.00 32.14 125.52 125.52 24.67 1.778 101,331 19.65 19.65 0.56 0.77 3.66
Note: Stock prices are closing prices or last trade. Pro forma calculations for
Douglas are based on sales at $10 per share with a midpoint of $14,000,000,
minimum of $11,900,000, and maximum of $16,100,000.
Source: SNL Securities and F&C calculations.
6
SECTION IV
CORRELATION OF MARKET VALUE
FERGUSON & COMPANY Section IV.
- ------------------ -----------
IV. CORRELATION OF MARKET VALUE
MARKETABILITY & LIQUIDITY OF STOCK TO BE ISSUED
This section addresses the aforementioned factors and the estimated pro
forma market. Certain factors must be considered to determine whether
adjustments are required in correlating Franklin's market value to the
comparative group. Those factors include financial aspects, market area,
management, dividends, liquidity, thrift equity market conditions, and
subscription interest value of the to-be-issued common shares, and compares the
resulting market value of the Bank to the members of its comparative group and
the selected group of publicly held thrifts.
Financial Aspects
Section III includes a discussion regarding a comparison of Franklin's
earnings, balance sheet characteristics, and risk factors with its comparative
group. Table III.2 presents a comparison of certain key indicators, and Table
III.3 presents certain key indicators on a pro forma basis after conversion.
As shown in Table III.2, from an earnings viewpoint, Franklin is below its
comparative group in return on assets (based on appraisal earnings) as a
percentage of average assets. This is principally a result of Franklin's lower
net interest income and lower net interest margins. Another comparison is the
core earnings of Franklin to the comparative group. In that comparison Franklin
is lower than the comparative group in core earnings to assets (0.56% to 1.08%).
Franklin has a lower net interest income than the comparables, 2.73% to the
comparative group's 3.57%. Franklin has a higher loss provision than the
comparative group (0.13% vs. 0.07%). However, if you adjust Franklin's 0.13%
provision to a normal provision, the comparison would be 0.03% to 0.07%.
Franklin has a lower other operating income (0.16% vs. 0.32%) and lower
operating expenses than the comparative group, after adjustment for
non-recurring expenses (1.80% vs. 2.08%). After considering all of the
analytical factors, and adjusting to core earnings, Franklin has lower earnings,
but is similar in results to the comparative group. After Franklin completes its
stock conversion, its return on average assets and core income as a percentage
of average assets will increase, but it will continue to be out performed by the
comparative group. Table III.3 projects that Franklin will have a return on
assets of 0.71% at the midpoint, versus a mean of 1.08% and median of 1.12% for
the comparative group.
Franklin's pro forma equity to assets ratio at the midpoint is 14.57%,
versus a mean of 15.14%, and median of 14.40% for the comparative group.
Franklin's pro forma return on equity is lower than the comparative group--4.66%
at the midpoint versus a mean of 7.01% and median of 7.81% for the comparative
group.
Franklin's recorded earnings of December 31, 1997 have been adjusted for
appraisal purposes (see Table IV.1). The first adjustment was for losses on the
sale of real estate owned in the amount of $13 thousand, pretax. The Bank
recorded loan loss provisions of $150 thousand for the twelve months ending
December 31, 1997. Previous annual provisions had been in the $32 thousand to
$33 thousand range. This additional provision was not dictated by historical or
anticipated loses, but instead was an attempt to bring the reserves for loan and
lease losses nearer to the Bank's peer average. The excess provision was $117
thousand, pretax. The final adjustment to earnings was for $450 thousand,
pretax, which was an expense recorded to provide for a Directors' compensation
and retirement plan. The total adjustments made were $580 thousand pretax and
$349 after tax. The $349 thousand adjustment plus the recorded earning at
December 31, 1997 of $298 thousand produced appraisal earnings of $647 thousand.
1
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.1 - Appraisal Earnings Adjustments
For the Twelve Months Ending December 31, 1997
(In Thousands)
Appraisal Earnings
Net Income Year
Ended December 31, 1997 $298
----
Loss on Sale of Real Estate 13
Excess Loss Provision 117
Dir. Comp & Ret. Plan 450
----
580
Tax @ 40% (231)
Net Adjustments 349
----
Adjusted Earnings $647
====
Source: Franklin's audited financial statements and F&C calculations.
Franklin's asset composition is lending oriented, with 76.63% of total
assets dedicated to lending. The comparative group is also lending oriented
(more than 50% of total assets are in loans); and the percentage of total assets
assigned to lending is 81.28%. The comparative group uses mortgage-backed
securities to augment loans (4.99%). Taking loans and MBS's as a total, Franklin
has 77.10% of total assets in that combination and the comparable group has
86.27%. Another area of significant difference in assets is in cash and
investments, where Franklin has 21.04% of its assets in that category and the
comparable group has 11.18%. Another notable difference in Franklin and the
comparative group is the funding source for the earnings assets, besides
capital. Franklin has a line of credit with the FHLB, but it was not in use for
much of 1997. Instead, assets are funded with deposits, which are 91.98% of
total assets. The comparative group has deposits of only 72.80% of assets and
borrowings of 10.91% of total assets.
From the viewpoint of risk, Franklin is similar to the comparative group
except in the area of interest rate risk. Franklin has 0.05% in nonperforming
assets, and the comparative group has 0.40% in nonperforming assets. Obviously,
Franklin's percentage is much smaller, but both levels are indicative of quality
portfolios, and neither should present any problems related to capital or future
earnings of Franklin or the comparative group. Franklin's loan loss allowance is
0.43% of net loans, comparing favorably with the comparative group, which is
0.52%. The increase in provisions for loan and lease losses recorded in the
quarter ending December 1997, was designed to bring the reserves to near peer
levels. Its ratio of interest earning assets to interest bearing liabilities
(108.07%) is much lower than the comparative group (116.18%). Franklin's
earnings ratios will be lower than the comparative group due to its dependency
on fixed rate, single family loans and the lack of repricing opportunities
within that portfolio. This dependency on fixed rate loans also increases the
level of interest rate risk borne by Franklin, compared to the comparative group
(one-year negative gap of 40.10% vs. positive 1.64% gap). Franklin's earnings
would be more sensitive to interest rate increases than the comparative group.
After the Conversion, Franklin's earnings capacity will increase due to the
capital infusion. The Bank's interest rate risk will decrease some after the
Conversion with the employment of the subsequent capital infusion.
2
FERGUSON & COMPANY Section IV.
- ------------------ -----------
We believe that no adjustment is necessary relative to financial aspects of
Franklin.
Market Area
Section II describes Franklin's market area.
We believe that no adjustment is required for Franklin's market area.
Management
The CEO has served as President, CEO, and Director since 1997. He joined
the Bank in 1997, and has significant experience in financial institution
management. His background is in lending and in commercial banking. His skills
are needed if goals of the plan are to be reached. He is well qualified for the
position he holds.
The senior staff is qualified, and has the necessary intellect, skills,
levels of expertise, and experience to maintain the integrity of the assets and
to implement the strategic goals of the organization. The Board of Directors has
hired additional commercial lenders to help with the Bank's business plan
objectives. Franklin's results are well below the comparative group, but the
current management team was not in control for all of 1997. Therefore, the
Bank's Management is considered to be on the same level as the selected
comparatives. There is no management succession plan in effect. There is not
sufficient depth of management so that the Bank would be vulnerable to the loss
of the CEO.
We believe that no adjustment is required Franklin's Management.
Dividends
Table III.3 provides dividend information relative to the comparative group
and the thrift industry as a whole. The comparative group is paying a mean yield
on a market price of 1.744% and a median of 1.778%, while all public thrifts are
paying a mean of 1.629% and median of 1.587%. Illinois public thrifts are paying
a mean of 1.438% and a median of 1.527%. Franklin does not intend to pay a
dividend.
We believe that a downward adjustment is required relative to Franklin's
intention not to pay dividends.
Liquidity
The Holding Company has never issued capital stock to the public, and as a
result, there is no existing market for the Common Stock. Although the Holding
Company has applied to list its Common Stock on NASDAQ, there can be no
assurance that a liquid trading market will develop.
A public market having the desirable characteristics of depth, liquidity,
and orderliness depends upon the presence in the marketplace of both willing
buyers and sellers of the Common Stock. These characteristics are not within the
control of the Bank or the market.
The peer group includes companies with sufficient trading volume to develop
meaningful pricing characteristics for the stock. The market value of the
comparative group ranges from $16.66 million to $49.2 million, with a mean value
of $30.16 million. The midpoint of Franklin's valuation range is $14.0 million
at $10.00 a share, or 1,400,000 shares. The liquidity of the stock can be
affected by the size of the issue ($14.00 million at the midpoint at $10.00 per
share). Of the 1,400,000 shares in the offering, approximately 100,000 shares
will be purchased by insiders, 112,000 by the ESOP, leaving approximately
1,188,000 shares available to the market. This number of shares can produce the
trading volume necessary to develop a meaningful, liquid market.
We believe that no adjustment is required relative to the liquidity of
Franklin's stock.
3
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Thrift Equity Market Conditions
As shown in Figure IV.1, which is a graph of the SNL Thrift Index covering
from January 31, 1994, through March 20, 1998, the market, as reflected by the
Index, experienced fluctuations but ended in 1994 - down 13.74, which is only
5.3%. Since year-end 1994, the market has continued with a well-defined increase
and has moved from 244.7 at December 31, 1994, to 376.51 at December 29, 1995,
an increase of 53.84%. From that point, the SNL Index rose consistently from the
376.51 reported at December 31, 1995, to 486.63 at December 31, 1996. The Index
increased further until the end of February 1997, reaching 569.67. March 1997
brought the first retrenchment of the Index and it fell to 537.21 in April of
1997. From April 11, 1997, forward, the Index increased. By the end of the month
of April, the Index rebounded, and has rebounded robustly since then, increasing
from 537.21 at April 30, 1997, to 684.51 reported July 31, 1997. From July
through the first three week of October 1997, the market continued to climb.
Late October saw significant market adjustments. The market fell sharply then
started an unsure rise. The SNL Index fell from 773.33 at October 21, 1997, to
745.83 at October 28, 1997. At November 7, 1997, the Index had reclaimed some of
its loss and closed at 755.07. Since November 1997, the market posted an overall
gain. There have been incidents of downward adjustments, but the trend is
showing a rising market and has reached an all time high at March 20, 1998.
The increase in the SNL Index, in general, has been parallel with the other
increases in equity markets, with some interim fluctuations caused by changes or
anticipated changes in interest rates. However, another factor is also notable.
In other markets, increased prices are responding to improved profits, with
price earnings ratios increasing as earnings potentials are anticipated. The
thrift IPO market has been affected by speculation that the majority of the
institutions will become viable consolidation candidates and sell at some
expanded multiple of book value.
EFFECT OF INTEREST RATES ON THRIFT STOCK
The current interest rate environment and the anticipated rate environment
will affect the pricing of thrift stocks and all other interest sensitive
stocks. As the economy continues to expand, the fear of inflation can return.
The Federal Reserve, in its resolve to curb inflation, has increased rates in
the past, but has more recently relented and passed several opportunities to
increase rates, until March 25, 1997, when the Federal Open Market Committee
(FOMC) increased the discount rate 25 basis points. In some minds, this was an
attempt to head off inflationary trends. According to the FOMC, "This action was
taken in light of persisting strength in demand, which is progressively
increasing the risk of inflationary imbalances developing in the economy that
would eventually undermine the long expansion."1 This increase was clearly
telegraphed by Chairman Greenspan who voiced concern about the levels of the
equity markets. Following the March 25 increase, unemployment rates were
announced at the 5.2% level, down from the 5.5% level at the beginning of 1996,
and significantly down from the 6.7% level at the beginning of 1994.2 The good
news about unemployment gave way to speculation that the March 25 increase was
just the first of at least two or three increases. That speculation was given
some credence at that time by rises in the Employment Cost Index, an increase in
Unit Labor Cost and an upward trend in the price of crude oil. Current crude oil
prices have significantly decreased due to the lack of demand for oil in the
Pacific Rim area. By April 1, 1997, following the rate increase, the equities
markets lost all of the gains registered since the first of the year. By the end
of April 1997, the market had begun a rebound and has trended upward since then.
There have been specific days of price adjustment, but the overall trend is up
notwithstanding
- ----------
1 US Financial Data, March 20, 1998, published by the Research Division of
the Federal Reserve Bank of St. Louis, MO.
2 National Economic Trends, The Federal Reserve Bank of St. Louis, MO.
4
FERGUSON & COMPANY Section IV.
- ------------------ -----------
recent dramatic ups and downs. Chairman Greenspan, in recent public appearances,
has not articulated concerns about market levels and inflation. Since the
significant market adjustment recorded October 21st, the Fed has publicized
inaction. The market reaction to the inaction has been mixed--generally regarded
as a neutral response.
The thrift equities market is following the market in general. However, the
thrift equities market will continue to be influenced by the speculation that
there will eventually be a buyout and the knowledge that thrift IPO stock can be
purchased at significant discounts from book value. These two facts could keep
the thrift equities market from falling as much as the other general markets.
The large mergers are likely to slow, but at the regional level, merger activity
is likely to continue.
What is likely to happen in the short to intermediate term is that rates
will float around current levels, but will be trending downward for the next few
months. By year-end, the long bond could be as low as 5.40%. The GDP is likely
to grow at the rate of 2.5% to 3.0%, with most of the growth coming in the first
half of the year. Inflation will moderate at between 1.5% and 2.0% for the year.
With the Federal Reserve always ready to raise (or lower) rates as economic
conditions warrant, it is likely that before this expansion cycle is over that
rates will ultimately rise. The supply and demand portion of the equation is
nicely balanced, and a continuation of such equilibrium will probably restrain
rising rates in the near term.
The consumer seems to be happier now than in the past. Job markets remain
strong and the unemployment rate is at 4.7%--the lowest since November of 1973.
Consumer confidence is at a 28 year high. Our continuing economic health has
always been dependent upon meaningful consumer participation, because consumers
(household sector) actually account for 68% of the Gross Domestic Product
("GDP").
In the second quarter of 1997, consumers seemed to rein in their
consumption. However, consumer expenditures rebounded nicely in the third
quarter. Manufacturing is still strong (new factory orders rose 2.4% in the
third quarter), as are home purchases and other big ticket items.
With consumer confidence at a high level, jobs plentiful, inflation
seemingly in check, and the economy healthy and continuing to expand, there is
little to keep the stock markets from continuing their upward movement. From an
analytical view, there is one thing on the economic horizon that could
negatively impact our economy--the Pacific Rim countries are in depression. Some
of these countries will resist or only pay "lip service" to the IMF
requirements. These economies only have one way out of their problems--exports.
They will begin to export at very low prices, and this will have a negative
impact on the United States corporate profits. Our corporate profits will be hit
from two directions with the Pacific Rim problems--(1) competition from cheap
exports, as we have discussed, coupled with (2) loss of exports (sales) by U. S.
companies due to the economic inability of the Pacific Rim customers to buy our
goods and services.
Thrift net interest margins have remained stable. The equilibrium in the
supply and demand portion of the interest rate market has helped continue the
profitability mode of the industry that started in 1993. Access to
mortgage-backed securities and derivatives have made it possible for many to be
profitable without making loans in significant volumes. With reduced deposit
insurance premiums, perhaps they will become more willing to compete for
customer deposits.
Figure IV.2 graphically displays the rate environment since June 13, 1997.
Since then, the yield curve has flattened with the high spread between the 1
year T-Bill and the 30 year long bond being 111 BP and the low 35 BP. The
current spread is 53 BP. Mortgage rates follow closely the long-term government
obligations.
5
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Franklin, with its significant interest rate risk, is highly vulnerable to
rising rates. However, such risk will be reduced by the additional capital
arising from the Conversion.
ILLINOIS ACQUISITIONS
Table IV.2 provides information relative to acquisitions of financial
institutions in Illinois between January 1, 1997, and December 31, 1997. There
were 20 acquisitions announced during that timeframe; 15 were banks and five
were thrifts. Currently, there are 11 publicly held thrifts in the State of
Illinois. There are 104 publicly held thrifts in the Midwest region of the
country. Acquisitions of financial institutions in Illinois completed since
January 1, 1997, have averaged 185.87% of book value and 20.46 times earnings.
The median price has been 181.52% of tangible book value and 17.42 times
earnings. Thrifts generally sell at lower price/book multiples than do banks.
This data reflects that banks averaged sales prices of 192.74% of book value,
while thrifts averaged 172.12%. Sales price/earnings ratios were lower for
banks, 18.33 times earnings vs. 24.28 times earnings for thrifts.
Disparity, or the lack thereof, between the price of thrifts and banks
aside, there is ample data shown to conclude that speculators in thrift IPO
stock have good reason to believe that, in the event of a sell out, there would
be a generous profit. Offsetting the disparity of sales price is the discount
from book value accorded thrift IPO stock. Such knowledge and hope for profits
have created a whole new level of professional investors (speculators) and that,
in turn, has increased the demand for thrift IPO stocks.
Table IV.3, which has information on recent conversions since August 31,
1997, shows that recent price appreciation has been more vigorous than it was in
past periods. Table IV.4 provides information on 15 conversions completed since
August 1997. The average change in price since conversion is a gain of 72.88%,
and the median change is a gain of 74.48%. All thrifts within that group have
increased in value, ranging from a low of 45.63% to a high of 128.75%. The
average increase in value at one day, one week, and one month after conversion
has been 57.93%, 58.18%, and 56.39%, respectively. The median increase in value
at one day, one week, and one month after conversion has been 56.25%, 60.00%,
and 59.90%, respectively. It is not uncommon for a stock to gain 75% to 80% of
its total price increase in the first day or week. Recent conversions gained
79.48% of their total price increase in the first day, and 79.82% of the total
price increase in the first week. This is in spite of the trend toward higher
price to pro forma book values at closings. Since August 31, 1997, no issues
have closed at a price to pro forma book value of less than 70.00%. The closing
range was between 70.70% and 81.50% price to pro forma book value.
Because of the lack of complete earnings information on recent conversions,
a meaningful comparison of the price earnings ratios is difficult to make.
However, there is sufficient information to review the current price-to-book
ratio. The average price-to-book ratio as of March 20, 1998, is 118.58%, and the
median is 115.88%. That compares to the offering price to pro forma book, where
the average was 77.31%, and the median was 77.80%.
We believe that a slight downward adjustment is required for the new issue
discount.
6
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Adjustments Conclusion
Adjustments Summary
- --------------------------------------------------------------------------------
No Change Upward Down
Financial Aspects X
Market Area X
Management X
Dividends X
Liquidity X
Thrift Equity Market Conditions X
- --------------------------------------------------------------------------------
Valuation Approach
Typically, investors rely on the price/earnings ratio as the most
appropriate indicator of value. We consider price/earnings to be one of the
important pricing methods in valuing a thrift stock. Price/book is a recognized
analytical yardstick for measuring the value of financial institution stocks in
general. Another method of viewing thrift values is price/assets, which is more
meaningful in situations where the subject is thinly capitalized. Given the
healthy condition of the thrift industry today, more emphasis is placed on
price/earnings and price/book. Generally, price/earnings and price/book should
be considered in tandem.
Table III.3 presents Franklin's pro forma ratios and compares them to the
ratios of its comparative group and the publicly held thrift industry as a
whole. Franklin's reported earnings for the 12 months ended December 31, 1997,
were approximately $298,000, with adjustments of $580,000 ($349,000 after tax @
40%) required to determine appraisal earnings of $647,000 (see Table IV.1).
Management has planned diversification of deposit and loan products; the changes
will help provide the flexibility in operations needed to serve the public, the
institution, and the "bottom line." The Bank is not well positioned to manage
interest rate variations and would have reduced profitability in a rising
interest rate market. The Bank projects a deposit growth rate of 18.40% for the
first year, 7.49% the second and 6.97% the third year.
At March 20, 1998, the comparative group traded at an average of 22.09
times earnings, and at 140.39% of book value. The comparative group traded at a
median of 20.51 times earnings and a median of 133.95% of book value. At the
midpoint of the valuation range, Franklin is priced at 15.48 times earnings and
71.54% of book value. At the maximum end of the range, Franklin is priced at
17.02 times earnings and 75.15% of book value. At the supermaximum, Franklin is
priced at 18.64 times earnings and 78.64% of book value.
The midpoint valuation of $14,000,000 represents a discount of 49.0% from
the average and a discount of 46.6% from the median of the comparative group on
a price/book basis. The price/earnings ratio for Franklin at the midpoint
represents a discount of 29.9% from the comparative group's mean and 24.5% from
the median price/earnings ratio.
The maximum valuation of $16,100,000 represents a discount of 46.5% from
the average and 43.9% from the median of the comparative group on a price/book
basis. The price/earnings ratio for Franklin at the maximum represents a
discount of 23.0% from the average and a discount of 17.0% from the median of
the comparative group.
7
FERGUSON & COMPANY Section IV.
- ------------------ -----------
As shown in Table IV.3, conversions closing since August 31, 1997, (Recent
Conversions) have closed at an average price to book ratio of 77.31% and median
of 77.80%. Franklin's pro forma price to book ratio is 71.54% at the midpoint,
75.15% at the maximum, and 78.64% at the supermaximum of the range. At the
midpoint, Franklin is 7.5% below the average and 8.0% below the median. At the
maximum of the range, Franklin is 2.8% below the average and 3.4% below the
median. At the supermaximum of the range, Franklin's pro forma price to book
ratio is 1.7% above the average and 1.1% above the median.
Addressing the discounts between the pro forma book value of Franklin and
the current price to book values of the comparative group (see Table IV.4),
there are some notable factors. Should the issue close at the supermaximum,
which is likely, then it would be closing at a premium of 1.70% on the average
of recent conversions. It is important to realize that there is some point
beyond which most knowledgeable investors will not travel as it relates to the
price of thrift IPO stock. This valuation provides for a 15% increase between
midpoint and maximum and an additional 15% to supermaximum, which would take the
value to a level that is comparable to the majority of most recent conversions.
Valuation Conclusion
We believe that as of March 20, 1998, the estimated pro forma market value
of Franklin was $14,000,000. The resulting valuation range was $11,900,000 at
the minimum to $16,100,000 at the maximum, based on a range of 15% below and 15%
above the midpoint valuation. The supermaximum is $18,515,000, based on 1.15
times the maximum. Pro forma comparisons with the comparative group are
presented in Table III.3 based on calculations shown in Exhibit V.
8
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.2
Whole Bank and Thrift
Acquisitions in Illinois
Seller: Seller: Ann'd
1:Total 1:Eqty/ Deal Pr/
Announce Assets Assets Assets
Buyer ST Seller ST TYPE Date ($000) (%) (%)
- -------------------- -- -------------------- -- ---- -------- ------- ------- --------
Kankakee Bancorp IL Coal City Nat'l Bank IL B 10/16/97 54,346 6.9 14.35
Banc Ed Corp IL Omni Financial Corp IL B 08/22/97 44,283 7.3 16.03
Suburban Illinois IL Southwest Fin'l Corp IL B 06/26/97 206,706 9.2 NA
Community Financial IL MidAmerica Bank IL B 06/25/97 13,195 27.6 42.44
First Midwest Bncp IL SparBank, Inc. IL B 06/20/97 455,762 11.0 23.21
Community Financial IL Egyptian Bancshares IL B 05/22/97 40,707 12.8 NA
National Canton Bcsh IL Sturm Investment IL B 02/24/97 102,995 8.9 16.21
Edgar County Bcshrs IL Kansas Banc Corp IL B 02/21/97 30,046 9.6 15.13
Parkway Bancorp IL Jefferson Holding IL B 02/07/97 156,657 16.3 24.20
AmeriMark Financial IL Duco Bancshares IL B 01/21/97 48,979 9.8 NA
Coal City Corp IL U.S. Bancorp IL B 01/14/97 205,823 13.9 20.21
National City Bncs IN Vernois Bcshs IL B 12/02/97 149,729 7.5 NA
National City Bncs IN Illinois One Bncp IL B 11/06/97 81,397 13.1 NA
National City Bncs IN Bridgeport Bancorp IL B 04/21/97 40,040 15.9 33.72
State Fin'l Svcs Cp WI Richmond Bancorp IL B 09/18/97 86,453 5.6 12.15
Alliance Bncp IL Southwest Bancshares IL T 12/17/97 375,004 11.3 23.97
Citizens Finl Svcs IN SuburbFed Financial IL T 12/30/97 432,559 6.6 10.75
TCF Financial Corp MN Standard Financial IL T 03/17/97 2,405,221 11.2 17.60
Magna Group MO Charter Financial IL T 11/20/97 393,268 14.5 25.89
Mercantile Bancorp MO HomeCorp Inc. IL T 10/29/97 326,877 6.8 13.40
Maximum 2,405,221 27.61 42.44
Minimum 13,195 5.63 10.75
Average 282,502 11.29 20.62
Median 126,362 10.41 17.60
Banks
- ------------------------------------------------------------------------------------------------
Average-banks 114,475 11.69 21.77
Median-banks 81,397 9.77 18.21
- ------------------------------------------------------------------------------------------------
Thrifts
- ------------------------------------------------------------------------------------------------
Average-thrifts 786,586 10.08 18.32
Median-thrifts 393,268 11.15 17.60
- ------------------------------------------------------------------------------------------------
Source: SNL Securities and F&C calculations.
9
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.2 (Continued)
Whole Bank and Thrift
Acquisitions in Illinois
Ann'd Ann'd Ann'd Ann'd Seller: Seller:
Deal Deal Pr/ Deal TgBk Prem/ 1:YTD 1:YTD
Pr/Bk 4-Qtr Pr/Deps CoreDeps ROAA ROAE
Buyer ST Seller ST (%) EPS (x) (%) (%) (%) (%)
- -------------------- -- -------------------- -- ----- -------- ------- ---------- ------- -------
Kankakee Bancorp IL Coal City Nat'l Bank IL 206.95 15.66 15.48 8.43 1.19 17.63
Banc Ed Corp IL Omni Financial Corp IL 219.14 14.85 17.51 11.37 1.22 16.90
Suburban Illinois IL Southwest Fin'l Corp IL NA NA NA NA 0.75 8.63
Community Financial IL MidAmerica Bank IL 153.72 NA 58.98 23.13 (4.86) NA
First Midwest Bncp IL SparBank, Inc. IL 210.33 17.19 28.12 16.96 1.36 12.56
Community Financial IL Egyptian Bancshares IL NA NA NA NA 1.22 9.77
National Canton Bcsh IL Sturm Investment IL 181.52 12.29 19.25 9.12 1.28 13.47
Edgar County Bcshrs IL Kansas Banc Corp IL 147.32 16.44 17.39 7.42 0.83 9.13
Parkway Bancorp IL Jefferson Holding IL 141.26 14.78 29.76 15.55 1.63 10.60
AmeriMark Financial IL Duco Bancshares IL NA NA NA NA 1.58 16.74
Coal City Corp IL U.S. Bancorp IL 145.70 29.97 24.10 8.78 0.67 4.96
National City Bncs IN Vernois Bcshs IL NA NA NA NA 1.86 25.61
National City Bncs IN Illinois One Bncp IL NA NA NA NA 1.27 9.71
National City Bncs IN Bridgeport Bancorp IL 212.53 28.07 40.49 24.86 1.16 7.78
State Fin'l Svcs Cp WI Richmond Bancorp IL 308.91 15.74 13.06 10.94 (0.25) (3.94)
Alliance Bncp IL Southwest Bancshares IL 202.05 22.46 32.65 19.48 1.08 10.01
Citizens Finl Svcs IN SuburbFed Financial IL 158.33 17.65 14.77 6.34 0.66 10.13
TCF Financial Corp MN Standard Financial IL 150.78 33.33 24.62 9.97 0.53 4.45
Magna Group MO Charter Financial IL 167.00 22.02 37.13 19.79 1.44 9.90
Mercantile Bancorp MO HomeCorp Inc. IL 182.45 25.92 14.64 8.19 0.54 8.33
Maximum 308.91 33.33 58.98 24.86 1.86 25.61
Minimum 141.26 12.29 13.06 6.34 (4.86) (3.94)
Average 185.87 20.46 25.86 13.36 0.76 10.65
Median 181.52 17.42 24.10 10.94 1.18 9.90
Banks
- -----------------------------------------------------------------------------------------------------------
Average-banks 192.74 18.33 26.41 13.66 0.73 11.40
Median-banks 194.24 15.74 21.68 11.16 1.22 10.19
- -----------------------------------------------------------------------------------------------------------
Thrifts
- -----------------------------------------------------------------------------------------------------------
Average-thrifts 172.12 24.28 24.76 12.75 0.85 8.56
Median-thrifts 167.00 22.46 24.62 9.97 0.66 9.90
- -----------------------------------------------------------------------------------------------------------
Source: SNL Securities and F&C calculations.
10
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.3 -- Recent Conversions -- Since August 31, 1997
Conversion Pricing Ratios
-------------------------------------------
Price/ Price/ Price/ Price/
Conversion Gross Offering Pro-Forma Pro-Forma Pro-Forma Adjusted
Assets Proceeds Price Book Value Tang. Book Earnings Assets
Ticker Short Name State IPO Date ($000) ($000) ($) (%) (%) (x) (%)
- ------ ----------------------------- ----- -------- ---------- -------- -------- ---------- ---------- --------- --------
SHSB SHS Bancorp Inc. PA 10/01/97 81,688 8,200 10.000 70.70 70.73 13.90 9.10
OTFC Oregon Trail Financial Corp. OR 10/06/97 204,213 46,949 10.000 76.60 76.63 18.50 18.70
FSFF First SecurityFed Financial IL 10/31/97 258,115 66,580 10.000 76.50 76.49 26.00 20.50
HCBC High Country Bancorp Inc. CO 12/10/97 76,324 13,225 10.000 77.70 77.75 30.50 14.80
SIB Staten Island Bancorp Inc. NY 12/22/97 2,144,500 515,775 12.000 80.60 83.01 14.10 19.40
WSBI Warwick Community Bancorp NY 12/23/97 286,545 66,065 10.000 78.60 78.58 13.70 18.70
UCBC Union Community Bancorp IN 12/29/97 84,291 30,418 10.000 74.10 74.11 13.50 26.50
PEDE Great Pee Dee Bancorp SC 12/31/97 60,538 21,821 10.000 73.90 73.89 15.90 26.50
UTBI United Tennessee Bankshares TN 01/05/98 64,189 14,548 10.000 78.40 78.40 16.10 18.50
MYST Mystic Financial Inc. MA 01/09/98 149,653 27,111 10.000 77.80 77.75 17.50 15.30
TSBK Timberland Bancorp Inc. WA 01/13/98 206,188 66,125 10.000 81.50 81.54 10.50 24.30
HFBC HopFed Bancorp Inc. KY 02/09/98 202,496 40,336 10.000 75.40 75.43 12.40 16.60
RCBK Richmond County Financial Corp NY 02/18/98 993,370 244,663 10.000 79.60 79.64 14.00 19.80
ICBC Independence Comm. Bank Corp. NY 03/17/98 3,733,316 760,438 10.000 78.50 83.73 18.40 16.90
CAVB Cavalry Bancorp Inc. TN 03/17/98 275,925 75,383 10.000 79.80 79.80 14.30 21.50
-------------------------------------------
Maximum 3,733,316 760,438 12.000 81.50 83.73 30.50 26.50
Minimum 60,538 8,200 10.000 70.70 70.73 10.50 9.10
Average 588,090 133,176 10.133 77.31 77.83 16.62 19.14
Median 204,213 46,949 10.000 77.80 77.75 14.30 18.70
-------------------------------------------
Table IV.3 -- Recent Conversions -- Since August 31, 1997 (Continued)
Post Conversion Increases (Decreases)
-----------------------------------------------
Current Current Current Price Price Price % Increase % Increase % Increase % Increase
Stock Price/ Price/Tang Day After Week After Month After Price One Price One Price One Since
Price Book Value Book Value Conversion Conversion Conversion Day After Week After Month After Conversion
Ticker ($) (%) (%) ($) ($) ($) (%) (%) (%) (%)
- ------ ------- ---------- ---------- ---------- ---------- ----------- ---------- ---------- ----------- ----------
SHSB 17.120 116.86 116.86 14.75 16.25 16.00 47.50 62.50 60.00 71.20
OTFC 18.375 119.78 119.78 16.75 16.38 16.13 67.50 63.75 61.25 83.75
FSFF 15.500 NA NA 15.06 15.13 16.06 50.63 51.25 60.63 55.00
HCBC 15.500 114.90 114.90 14.44 15.06 14.50 44.38 50.63 45.00 55.00
SIB 20.938 137.75 141.57 19.06 19.44 19.19 58.86 61.98 59.90 74.48
WSBI 17.625 NA NA 15.63 17.00 15.63 56.25 70.00 56.25 76.25
UCBC 15.500 109.85 109.85 14.69 14.25 14.25 46.88 42.50 42.50 55.00
PEDE 15.750 112.34 112.34 16.13 15.50 14.88 61.25 55.00 48.75 57.50
UTBI 14.563 NA NA 14.75 13.75 14.25 47.50 37.50 42.50 45.63
MYST 17.875 NA NA 14.44 15.63 15.00 44.38 56.25 50.00 78.75
TSBK 18.125 NA NA 14.50 16.00 16.00 45.00 60.00 60.00 81.25
HFBC 17.250 NA NA 16.81 16.00 16.75 68.13 60.00 67.50 72.50
RCBK 17.938 NA NA 16.31 16.44 17.88 63.13 64.38 78.75 79.38
ICBC 17.875 NA NA 17.25 17.88 NA 72.50 78.75 NA 78.75
CAVB 22.875 NA NA 19.50 NA NA 95.00 NA NA 128.75
-----------------------------------------------
Maximum 22.88 137.75 141.57 19.50 19.44 19.19 95.00 78.75 78.75 128.75
Minimum 14.56 109.85 109.85 14.44 13.75 14.25 44.38 37.50 42.50 45.63
Average 17.52 118.58 119.22 16.00 16.05 15.88 57.93 58.18 56.39 72.88
Median 17.63 115.88 115.88 15.63 16.00 16.00 56.25 60.00 59.90 74.48
-----------------------------------------------
Source: SNL Securities and F&C calculations.
11
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Table IV.4 -- Comparison of Pricing Ratios
Group Percent Premium
Compared to (Discount) Versus
Ben ----------------- -----------------
Franklin Average Median Average Median
-------- ------- ------ ------- ------
Comparison of PE ratio at midpoint to:
- ------------------------------------------
Comparative group 15.48 22.09 20.51 (29.9) (24.5)
Illinois Thrifts 15.48 25.50 18.57 (39.3) (16.6)
Midwest 15.48 21.91 20.80 (29.3) (25.6)
All public thrifts 15.48 21.71 20.62 (28.7) (24.9)
Recent conversions 15.48 16.62 14.30 (6.9) 8.3
Comparison of PE ratio at maximum to:
- ------------------------------------------
Comparative group 17.02 22.09 20.51 (23.0) (17.0)
Illinois Thrifts 17.02 25.50 18.57 (33.3) (8.3)
Midwest 17.02 21.91 20.80 (22.3) (18.2)
All public thrifts 17.02 21.71 20.62 (21.6) (17.5)
Recent conversions 17.02 16.62 14.30 2.4 19.0
Comparison of PE ratio at supermaximum to:
- ------------------------------------------
Comparative group 18.64 22.09 20.51 (15.6) (9.1)
Illinois Thrifts 18.64 25.50 18.57 (26.9) 0.4
Midwest 18.64 21.91 20.80 (14.9) (10.4)
All public thrifts 18.64 21.71 20.62 (14.1) (9.6)
Recent conversions 18.64 16.62 14.30 12.2 30.3
Comparison of PB ratio at midpoint to:
- ------------------------------------------
Comparative group 71.54 140.39 133.95 (49.0) (46.6)
Illinois Thrifts 71.54 146.71 137.21 (51.2) (47.9)
Midwest 71.54 166.78 147.77 (57.1) (51.6)
All public thrifts 71.54 175.75 161.07 (59.3) (55.6)
Recent conversions 71.54 77.31 77.80 (7.5) (8.0)
Comparison of PB ratio at maximum to:
- ------------------------------------------
Comparative group 75.15 140.39 133.95 (46.5) (43.9)
Illinois Thrifts 75.15 146.71 137.21 (48.8) (45.2)
Midwest 75.15 166.78 147.77 (54.9) (49.1)
All public thrifts 75.15 175.75 161.07 (57.2) (53.3)
Recent conversions 75.15 77.31 77.80 (2.8) (3.4)
Comparison of PB ratio at supermaximum to:
- ------------------------------------------
Comparative group 78.64 140.39 133.95 (44.0) (41.3)
Illinois Thrifts 78.64 146.71 137.21 (46.4) (42.7)
Midwest 78.64 166.78 147.77 (52.8) (46.8)
All public thrifts 78.64 175.75 161.07 (55.3) (51.2)
Recent conversions 78.64 77.31 77.80 1.7 1.1
Source: SNL Securities and F&C calculations.
12
FIGURES FOR SECTION IV
13
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Figure I -- SNL Index
Date Index
- -----------------
31-Jan-94 258.47
28-Feb-94 249.53
31-Mar-94 241.57
29-Apr-94 248.31
31-May-94 263.34
30-Jun-94 269.58
29-Jul-94 276.69
31-Aug-94 287.18
30-Sep-94 279.69
31-Oct-94 236.12
30-Nov-94 245.84
30-Dec-94 244.73
31-Jan-95 256.10 [GRAPHIC OMITTED]
28-Feb-95 277.00
31-Mar-95 278.40
28-Apr-95 295.44
31-May-95 307.60
23-Jun-95 313.95 -------------------------------------------------------------
31-Jul-95 328.20 Percent Change Since
31-Aug-95 355.50 -------------------------------------------------------------
29-Sep-95 362.29 SNL Prev.
31-Oct-95 354.05 Date Index Date 12/31/94 12/31/95 12/31/96 11/7/97
30-Nov-95 370.17 ---- ----- ----- -------- -------- -------- -------
29-Dec-95 376.51 31-Dec-94 244.70
31-Jan-95 370.69 31-Mar-95 278.40 13.77% 13.77%
29-Feb-96 373.64 30-Jun-95 313.50 12.61% 28.12%
29-Mar-96 382.13 30-Sep-95 362.30 15.57% 48.06%
30-Apr-96 377.24 31-Oct-95 354.10 -2.26% 44.71%
31-May-96 382.99 30-Nov-95 370.20 4.55% 51.29%
28-Jun-96 387.18 31-Dec-95 376.50 1.70% 53.86%
30-Jul-96 388.38 12-Jan-96 372.40 -1.09% 52.19% -1.09%
30-Aug-96 408.34 31-Jan-96 370.70 -0.46% 51.49% -1.54%
30-Sep-96 429.28 29-Feb-96 373.60 0.78% 52.68% -0.77%
30-Oct-96 456.70 29-Mar-96 382.10 2.28% 56.15% 1.49%
29-Nov-96 485.83 30-Apr-96 377.20 -1.28% 54.15% 0.19%
31-Dec-96 486.63 31-May-96 382.99 1.53% 56.51% 1.72%
31-Jan-97 520.08 28-Jun-96 387.18 1.09% 58.23% 2.84%
27-Feb-97 569.67 30-Jul-96 371.62 -4.02% 51.87% -1.30%
31-Mar-97 527.74 30-Aug-96 408.34 9.88% 66.87% 8.46%
30-Apr-97 537.21 20-Sep-96 419.50 2.73% 71.43% 11.42%
30-May-97 577.94 30-Sep-96 429.28 2.33% 75.43% 14.02%
30-Jun-97 624.55 30-Oct-96 456.70 6.39% 86.64% 21.30%
30-Jul-97 684.51 29-Nov-96 485.83 6.38% 98.54% 29.04%
28-Aug-97 661.21 13-Dec-96 473.64 -2.51% 93.56% 25.80%
2-Sep-97 677.20 20-Dec-96 481.56 1.67% 96.80% 27.90%
12-Sep-97 698.55 31-Dec-96 486.63 1.05% 98.87% 29.25%
23-Sep-97 729.07 10-Jan-97 484.33 -0.47% 97.93% 28.64% -0.47%
30-Sep-97 737.50 31-Jan-97 520.08 7.38% 112.54% 38.14% 6.87%
9-Oct-97 766.19 14-Feb-97 547.17 5.21% 123.61% 45.33% 12.44%
21-Oct-97 773.33 27-Feb-97 569.67 4.11% 132.80% 51.31% 17.06%
28-Oct-97 745.83 14-Mar-97 560.67 -1.58% 129.13% 48.92% 15.21%
7-Nov-97 755.07 31-Mar-97 527.74 -5.87% 115.67% 40.17% 8.45%
20-Nov-97 763.40 15-Apr-97 525.48 -0.43% 114.74% 39.57% 7.98%
28-Nov-97 767.35 30-Apr-97 537.21 2.23% 119.54% 42.69% 10.39%
19-Dec-97 793.02 30-May-97 577.94 7.58% 136.18% 53.50% 18.76%
26-Dec-97 786.90 12-Jun-97 604.15 4.54% 146.89% 60.46% 24.15%
31-Dec-97 797.56 30-Jun-97 624.55 3.38% 155.23% 65.88% 28.34%
9-Jan-98 720.16 17-Jul-97 652.44 4.47% 166.63% 73.29% 34.07%
30-Jan-98 768.35 30-Jul-97 684.51 4.92% 179.73% 81.81% 40.66%
23-Feb-98 814.61 22-Aug-97 663.36 -3.09% 171.09% 76.19% 36.32%
6-Mar-98 823.58 28-Aug-97 661.21 -0.32% 170.21% 75.62% 35.88%
20-Mar-98 872.70 2-Sep-97 677.20 2.42% 176.75% 79.87% 39.16%
12-Sep-97 698.55 3.15% 185.47% 85.54% 43.55%
30-Sep-97 737.50 5.58% 201.39% 95.88% 51.55%
9-Oct-97 766.19 3.89% 213.11% 103.50% 57.45%
21-Oct-97 773.33 4.86% 216.03% 105.40% 58.92%
28-Oct-97 745.83 -3.56% 204.79% 98.10% 53.26%
7-Nov-97 755.07 1.24% 208.57% 100.55% 55.16%
20-Nov-97 763.40 1.10% 211.97% 102.76% 56.87% 1.10%
28-Nov-97 767.35 0.52% 213.59% 103.81% 57.69% 1.63%
19-Dec-97 793.02 3.35% 224.08% 110.63% 62.96% 5.03%
26-Dec-97 786.90 -0.77% 221.58% 109.00% 61.70% 4.22%
31-Dec-97 797.56 1.35% 225.93% 111.84% 63.89% 5.63%
9-Jan-98 720.16 -9.70% 194.30% 91.28% 47.99% -4.62%
30-Jan-98 768.35 6.69% 214.00% 104.08% 57.89% 1.76%
23-Feb-98 814.61 6.02% 232.90% 116.36% 67.40% 7.89%
6-Mar-98 823.58 1.10% 236.57% 118.75% 69.24% 9.07%
20-Mar-98 872.70 5.96% 256.64% 131.79% 79.34% 15.58%
-------------------------------------------------------------
Source: SNL Securities and F&C calculations.
14
FERGUSON & COMPANY Section IV.
- ------------------ -----------
Figure II -- Interest Rates
- ------------------------------------------------------------- ----------
1 Year 5 Year 10 Year 30 Year 1 to 30
Fed Fds (*) T-bill Treas. Treas. Treas. Yr. Spread
- ------------------------------------------------------------- ----------
13-Jun-97 5.48 5.71 6.40 6.52 6.80
27-Jun-97 5.42 5.64 6.33 6.45 6.75 1.11
- ------------------------------------------------------------- ----------
18-Jul-97 5.44 5.53 6.14 6.23 6.52
1-Aug-97 5.57 5.47 6.00 6.11 6.38 0.91
- ------------------------------------------------------------- ----------
15-Aug-97 5.45 5.61 6.20 6.37 6.65
29-Aug-97 5.56 5.59 6.22 6.34 6.61 1.02
- ------------------------------------------------------------- ----------
12-Sep-97 5.48 5.59 6.23 6.34 6.64
26-Sep-97 5.45 5.46 6.00 6.08 6.36 0.90
- ------------------------------------------------------------- ----------
10-Oct-97 5.46 5.40 5.88 5.99 6.29
28-Oct-97 5.45 5.39 5.88 6.16 6.22 0.83
- ------------------------------------------------------------- ----------
14-Nov-97 5.50 5.43 5.81 5.88 6.12
28-Nov-97 5.49 5.50 5.82 5.86 6.06 0.56
- ------------------------------------------------------------- ----------
19-Dec-97 5.66 5.47 5.75 5.79 5.97
31-Dec-97 5.44 5.55 5.72 5.74 5.90 0.35
- ------------------------------------------------------------- ----------
16-Jan-98 5.45 5.17 5.32 5.45 5.74
30-Jan-98 5.53 5.27 5.48 5.63 5.89 0.62
- ------------------------------------------------------------- ----------
13-Feb-98 5.43 5.29 5.49 5.61 5.91
27-Feb-98 5.51 5.42 5.60 5.63 5.94 0.52
- ------------------------------------------------------------- ----------
13-Mar-98 5.45 5.36 5.57 5.62 5.93
20-Mar-98 5.47 5.36 5.54 5.57 5.89 0.53
- ------------------------------------------------------------- ----------
(*) Average of Rates Available
INREREST RATES FROM JUNE 13, 1997 TO MARCH 20, 1998
[GRAPHIC OMITTED]
- ------------------------------------------------------------- ----------
1 Year 5 Year 10 Year 30 Year 1 to 30
Fed Fds (*) T-bill Treas. Treas. Treas. Yr. Spread
- ------------------------------------------------------------- ----------
20-Mar-98 5.47 5.36 5.54 5.57 5.89 0.53
- ------------------------------------------------------------- ----------
CURRENT YIELD CURVE
[GRAPHIC OMITTED]
(*) Average of Rates Available
Source: US Financial Data, Federal Reserve Bank of St. Louis, MO
15
EXHIBITS
EXHIBIT I
FERGUSON & COMPANY QUALIFICATIONS
Ferguson & Company (F&C) is a financial, economic, and regulatory
consulting firm providing services to financial institutions. It is located in
Hurst, Texas. Its services to financial institutions include:
o Mergers and acquisition services,
o Business plans,
o Fairness opinions and conversion appraisals,
o Litigation support,
o Loan review and valuation,
o Operational and efficiency consulting,
o Human resources evaluation and management, and
o Regulatory consulting.
F&C developed several financial institution databases of information
derived from periodic financial reports filed with regulatory authorities by
financial institutions. For example, F&C developed TAFS and BankSource. TAFS
includes thrifts filing TFR's with the OTS and BankSource includes banks and
savings banks filing call reports with the FDIC. Both databases of information
include information from the periodic reports plus numerous calculations derived
from F&C's analysis. In addition, both databases are interactive, permitting the
user to conduct merger analysis, do peer group comparisons, and a number of
other items. F&C recently sold its electronic publishing segment to Sheshunoff
Information Services Inc., Austin, Texas.
Brief biographical information is presented below on F&C's principals:
WILLIAM C. FERGUSON
- -------------------
Mr. Ferguson has approximately 30 years of experience providing various services
to financial institutions. He was a partner in a CPA firm prior to founding F&C
in 1984. Mr. Ferguson is a frequent speaker for financial institution seminars
and he has testified before Congressional Committees several times on his
analysis of the state of the thrift industry. Mr. Ferguson has a B.A. degree
from Austin Peay University and an M.S. degree from the University of Tennessee.
He is a CPA.
1
CHARLES M. HEBERT
- -----------------
Mr. Hebert has over 30 years of experience providing services to and managing
financial institutions. He spent 7 years as a national bank examiner, 14 years
in bank management, 5 years in thrift management, and has spent the last 7 years
on the F&C consulting staff. Mr. Hebert holds a B.S. degree from Louisiana State
University. He is a certified commercial lender.
ROBIN L. FUSSELL
- ----------------
Mr. Fussell has over 25 years of experience providing professional services to
and managing financial institutions. He worked on the audit staff of a "Big Six"
accounting firm for 12 years, served as CFO of a thrift for 3 years, and has
worked in financial institution consulting for the last 12 years. He is a
co-founder of F&C. He holds a B.S. degree from East Carolina University. He is a
CPA.
2
EXHIBIT II
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
AABC Access Anytime Bancorp Inc. Clovis NM SW SAIF NASDAQ 08/08/86 10.813
ABBK Abington Bancorp Inc. Abington MA NE BIF NASDAQ 06/10/86 20.875
ABCL Alliance Bancorp Inc. Hinsdale IL MW SAIF NASDAQ 07/07/92 28.750
ABCW Anchor BanCorp Wisconsin Madison WI MW SAIF NASDAQ 07/16/92 44.500
AFBC Advance Financial Bancorp Wellsburg WV SE SAIF NASDAQ 01/02/97 19.875
AFED AFSALA Bancorp Inc. Amsterdam NY MA SAIF NASDAQ 10/01/96 20.000
AHCI Ambanc Holding Co. Amsterdam NY MA BIF NASDAQ 12/27/95 19.125
ALBC Albion Banc Corp. Albion NY MA SAIF NASDAQ 07/26/93 10.766
ALBK ALBANK Financial Corp. Albany NY MA SAIF NASDAQ 04/01/92 49.250
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 17.625
ANA Acadiana Bancshares Inc. Lafayette LA SW SAIF AMSE 07/16/96 22.125
ANDB Andover Bancorp Inc. Andover MA NE BIF NASDAQ 05/08/86 40.063
ASBI Ameriana Bancorp New Castle IN MW SAIF NASDAQ 03/02/87 20.500
ASBP ASB Financial Corp. Portsmouth OH MW SAIF NASDAQ 05/11/95 14.250
ASFC Astoria Financial Corp. Lake Success NY MA SAIF NASDAQ 11/18/93 61.875
BDJI First Federal Bancorp. Bemidji MN MW SAIF NASDAQ 04/04/95 20.000
BFD BostonFed Bancorp Inc. Burlington MA NE SAIF AMSE 10/24/95 22.188
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 29.125
BKC American Bank of Connecticut Waterbury CT NE BIF AMSE 12/01/81 52.625
BKCT Bancorp Connecticut Inc. Southington CT NE BIF NASDAQ 07/03/86 20.000
BNKU Bank United Corp. Houston TX SW SAIF NASDAQ 08/09/96 48.375
BPLS Bank Plus Corp. Los Angeles CA WE SAIF NASDAQ NA 15.250
BVCC Bay View Capital Corp. San Mateo CA WE SAIF NASDAQ 05/09/86 35.750
CAFI Camco Financial Corp. Cambridge OH MW SAIF NASDAQ NA 26.375
CASB Cascade Financial Corp. Everett WA WE SAIF NASDAQ 09/16/92 14.750
CASH First Midwest Financial Inc. Storm Lake IA MW SAIF NASDAQ 09/20/93 22.875
CATB Catskill Financial Corp. Catskill NY MA BIF NASDAQ 04/18/96 17.875
CBCI Calumet Bancorp Inc. Dolton IL MW SAIF NASDAQ 02/20/92 36.750
CBSA Coastal Bancorp Inc. Houston TX SW SAIF NASDAQ NA 32.875
CEBK Central Co-operative Bank Somerville MA NE BIF NASDAQ 10/24/86 32.250
CENB Century Bancorp Inc. Thomasville NC SE SAIF NASDAQ 12/23/96 115.750
CFB Commercial Federal Corp. Omaha NE MW SAIF NYSE 12/31/84 35.250
CFCP Coastal Financial Corp. Myrtle Beach SC SE SAIF NASDAQ 09/26/90 22.000
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 30.250
CFNC Carolina Fincorp Inc. Rockingham NC SE SAIF NASDAQ 11/25/96 17.313
CFSB CFSB Bancorp Inc. Lansing MI MW SAIF NASDAQ 06/22/90 29.125
CFTP Community Federal Bancorp Tupelo MS SE SAIF NASDAQ 03/26/96 18.625
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 18.000
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 20.500
CLAS Classic Bancshares Inc. Ashland KY MW SAIF NASDAQ 12/29/95 20.250
CMRN Cameron Financial Corp Cameron MO MW SAIF NASDAQ 04/03/95 20.250
CMSB Commonwealth Bancorp Inc. Norristown PA MA SAIF NASDAQ 06/17/96 21.000
CNIT CENIT Bancorp Inc. Norfolk VA SE SAIF NASDAQ 08/06/92 79.000
CNSB CNS Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 06/12/96 18.250
COFI Charter One Financial Cleveland OH MW SAIF NASDAQ 01/22/88 65.625
COOP Cooperative Bankshares Inc. Wilmington NC SE SAIF NASDAQ 08/21/91 19.750
CRSB Crusader Holding Corp. Philadelphia PA MA SAIF NASDAQ NA 15.500
CRZY Crazy Woman Creek Bancorp Buffalo WY WE SAIF NASDAQ 03/29/96 17.250
CSBF CSB Financial Group Inc. Centralia IL MW SAIF NASDAQ 10/09/95 13.750
CVAL Chester Valley Bancorp Inc. Downingtown PA MA SAIF NASDAQ 03/27/87 35.250
DCBI Delphos Citizens Bancorp Inc. Delphos OH MW SAIF NASDAQ 11/21/96 21.250
DIBK Dime Financial Corp. Wallingford CT NE BIF NASDAQ 07/09/86 30.250
DIME Dime Community Bancorp Inc. Brooklyn NY MA BIF NASDAQ 06/26/96 24.125
DME Dime Bancorp Inc. New York NY MA BIF NYSE 08/19/86 29.875
DNFC D & N Financial Corp. Hancock MI MW SAIF NASDAQ 02/13/85 27.750
DSL Downey Financial Corp. Newport Beach CA WE SAIF NYSE 01/01/71 32.063
EBSI Eagle Bancshares Tucker GA SE SAIF NASDAQ 04/01/86 21.375
EFBC Empire Federal Bancorp Inc. Livingston MT WE SAIF NASDAQ 01/27/97 18.000
EFBI Enterprise Federal Bancorp West Chester OH MW SAIF NASDAQ 10/17/94 33.000
Source: SNL Securities and F&C calculations.
1
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
EMLD Emerald Financial Corp. Strongsville OH MW SAIF NASDAQ 10/05/93 22.000
EQSB Equitable Federal Savings Bank Wheaton MD MA SAIF NASDAQ 09/10/93 31.500
ESBK Elmira Savings Bank (The) Elmira NY MA BIF NASDAQ 03/01/85 28.656
FAB FIRSTFED AMERICA BANCORP INC. Swansea MA NE SAIF AMSE 01/15/97 20.250
FBBC First Bell Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/29/95 21.000
FBCI Fidelity Bancorp Inc. Chicago IL MW SAIF NASDAQ 12/15/93 25.000
FBCV 1ST Bancorp Vincennes IN MW SAIF NASDAQ 04/07/87 27.250
FBER 1st Bergen Bancorp Wood-Ridge NJ MA SAIF NASDAQ 04/01/96 20.750
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 16.750
FCB Falmouth Bancorp Inc. Falmouth MA NE BIF AMSE 03/28/96 23.625
FCBF FCB Financial Corp. Oshkosh WI MW SAIF NASDAQ 09/24/93 32.250
FCME First Coastal Corp. Westbrook ME NE BIF NASDAQ NA 13.750
FDEF First Defiance Financial Defiance OH MW SAIF NASDAQ 10/02/95 15.375
FED FirstFed Financial Corp. Santa Monica CA WE SAIF NYSE 12/16/83 39.875
FESX First Essex Bancorp Inc. Andover MA NE BIF NASDAQ 08/04/87 24.625
FFBH First Federal Bancshares of AR Harrison AR SE SAIF NASDAQ 05/03/96 26.250
FFBZ First Federal Bancorp Inc. Zanesville OH MW SAIF NASDAQ 07/13/92 25.000
FFCH First Financial Holdings Inc. Charleston SC SE SAIF NASDAQ 11/10/83 51.750
FFDB FirstFed Bancorp Inc. Bessemer AL SE SAIF NASDAQ 11/19/91 23.750
FFED Fidelity Federal Bancorp Evansville IN MW SAIF NASDAQ 08/31/87 9.375
FFES First Federal of East Hartford East Hartford CT NE SAIF NASDAQ 06/23/87 40.000
FFFD North Central Bancshares Inc. Fort Dodge IA MW SAIF NASDAQ 03/21/96 22.438
FFHH FSF Financial Corp. Hutchinson MN MW SAIF NASDAQ 10/07/94 20.000
FFHS First Franklin Corp. Cincinnati OH MW SAIF NASDAQ 01/26/88 26.500
FFIC Flushing Financial Corp. Flushing NY MA BIF NASDAQ 11/21/95 24.500
FFKY First Federal Financial Corp. Elizabethtown KY MW SAIF NASDAQ 07/15/87 21.484
FFLC FFLC Bancorp Inc. Leesburg FL SE SAIF NASDAQ 01/04/94 19.750
FFOH Fidelity Financial of Ohio Cincinnati OH MW SAIF NASDAQ 03/04/96 18.000
FFSL First Independence Corp. Independence KS MW SAIF NASDAQ 10/08/93 15.000
FFSX First Fed SB of Siouxland(MHC) Sioux City IA MW SAIF NASDAQ 07/13/92 35.750
FFWC FFW Corp. Wabash IN MW SAIF NASDAQ 04/05/93 19.000
FFWD Wood Bancorp Inc. Bowling Green OH MW SAIF NASDAQ 08/31/93 20.000
FFYF FFY Financial Corp. Youngstown OH MW SAIF NASDAQ 06/28/93 34.375
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 10.750
FIBC Financial Bancorp Inc. Long Island City NY MA SAIF NASDAQ 08/17/94 25.750
FISB First Indiana Corp. Indianapolis IN MW SAIF NASDAQ 08/02/83 27.000
FKFS First Keystone Financial Media PA MA SAIF NASDAQ 01/26/95 17.000
FKKY Frankfort First Bancorp Inc. Frankfort KY MW SAIF NASDAQ 07/10/95 16.750
FLAG FLAG Financial Corp. LaGrange GA SE SAIF NASDAQ 12/11/86 19.875
FLFC First Liberty Financial Corp. Macon GA SE SAIF NASDAQ 12/06/83 34.000
FLGS Flagstar Bancorp Inc. Bloomfield Hills MI MW SAIF NASDAQ NA 23.375
FLKY First Lancaster Bancshares Lancaster KY MW SAIF NASDAQ 07/01/96 15.125
FMCO FMS Financial Corp. Burlington NJ MA SAIF NASDAQ 12/14/88 34.750
FMSB First Mutual Savings Bank Bellevue WA WE BIF NASDAQ 12/17/85 18.250
FNGB First Northern Capital Corp. Green Bay WI MW SAIF NASDAQ 12/29/83 13.500
FSBI Fidelity Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 06/24/88 30.750
FSNJ Bayonne Bancshares Inc. Bayonne NJ MA SAIF NASDAQ 08/22/97 14.813
FSPT FirstSpartan Financial Corp. Spartanburg SC SE SAIF NASDAQ 07/09/97 44.000
FSTC First Citizens Corp. Newnan GA SE SAIF NASDAQ 03/01/86 32.000
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 28.000
FTFC First Federal Capital Corp. La Crosse WI MW SAIF NASDAQ 11/02/89 31.500
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 15.250
FWWB First SB of Washington Bancorp Walla Walla WA WE SAIF NASDAQ 11/01/95 27.000
GAF GA Financial Inc. Pittsburgh PA MA SAIF AMSE 03/26/96 19.000
GDW Golden West Financial Oakland CA WE SAIF NYSE 05/29/59 97.813
GFCO Glenway Financial Corp. Cincinnati OH MW SAIF NASDAQ 11/30/90 20.000
GPT GreenPoint Financial Corp. New York NY MA BIF NYSE 01/28/94 37.063
GSBC Great Southern Bancorp Inc. Springfield MO MW SAIF NASDAQ 12/14/89 25.750
GSFC Green Street Financial Corp. Fayetteville NC SE SAIF NASDAQ 04/04/96 17.875
GTPS Great American Bancorp Champaign IL MW SAIF NASDAQ 06/30/95 21.000
Source: SNL Securities and F&C calculations.
2
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 22.000
HALL Hallmark Capital Corp. West Allis WI MW SAIF NASDAQ 01/03/94 15.500
HARB Harbor Florida Bancorp (MHC) Fort Pierce FL SE SAIF NASDAQ 01/06/94 75.500
HARL Harleysville Savings Bank Harleysville PA MA SAIF NASDAQ 08/04/87 30.250
HAVN Haven Bancorp Inc. Woodhaven NY MA SAIF NASDAQ 09/23/93 24.625
HBFW Home Bancorp Fort Wayne IN MW SAIF NASDAQ 03/30/95 36.625
HBNK Highland Bancorp Inc. Burbank CA WE SAIF NASDAQ NA 36.500
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 22.250
HCFC Home City Financial Corp. Springfield OH MW SAIF NASDAQ 12/30/96 18.625
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY MW SAIF NASDAQ 10/04/95 16.563
HFFC HF Financial Corp. Sioux Falls SD MW SAIF NASDAQ 04/08/92 29.500
HFNC HFNC Financial Corp. Charlotte NC SE SAIF NASDAQ 12/29/95 13.500
HFSA Hardin Bancorp Inc. Hardin MO MW SAIF NASDAQ 09/29/95 18.875
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 15.063
HIFS Hingham Instit. for Savings Hingham MA NE BIF NASDAQ 12/20/88 34.000
HMLK Hemlock Federal Financial Corp Oak Forest IL MW SAIF NASDAQ 04/02/97 18.750
HMNF HMN Financial Inc. Spring Valley MN MW SAIF NASDAQ 06/30/94 30.000
HOMF Home Federal Bancorp Seymour IN MW SAIF NASDAQ 01/23/88 30.500
HPBC Home Port Bancorp Inc. Nantucket MA NE BIF NASDAQ 08/25/88 26.000
HRBF Harbor Federal Bancorp Inc. Baltimore MD MA SAIF NASDAQ 08/12/94 24.813
HRZB Horizon Financial Corp. Bellingham WA WE BIF NASDAQ 08/01/86 18.875
HTHR Hawthorne Financial Corp. El Segundo CA WE SAIF NASDAQ NA 19.438
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 16.250
INBI Industrial Bancorp Inc. Bellevue OH MW SAIF NASDAQ 08/01/95 22.000
IPSW Ipswich Savings Bank Ipswich MA NE BIF NASDAQ 05/26/93 14.000
ITLA ITLA Capital Corp. La Jolla CA WE BIF NASDAQ 10/24/95 21.250
IWBK InterWest Bancorp Inc. Oak Harbor WA WE SAIF NASDAQ NA 42.000
JSB JSB Financial Inc. Lynbrook NY MA BIF NYSE 06/27/90 54.375
JSBA Jefferson Savings Bancorp Ballwin MO MW SAIF NASDAQ 04/08/93 27.000
JXVL Jacksonville Bancorp Inc. Jacksonville TX SW SAIF NASDAQ 04/01/96 20.125
KFBI Klamath First Bancorp Klamath Falls OR WE SAIF NASDAQ 10/05/95 23.000
KNK Kankakee Bancorp Inc. Kankakee IL MW SAIF AMSE 01/06/93 36.125
KSBK KSB Bancorp Inc. Kingfield ME NE BIF NASDAQ 06/24/93 18.500
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 14.000
LARK Landmark Bancshares Inc. Dodge City KS MW SAIF NASDAQ 03/28/94 23.500
LARL Laurel Capital Group Inc. Allison Park PA MA SAIF NASDAQ 02/20/87 21.625
LFBI Little Falls Bancorp Inc. Little Falls NJ MA SAIF NASDAQ 01/05/96 20.188
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 17.500
LSBI LSB Financial Corp. Lafayette IN MW BIF NASDAQ 02/03/95 30.500
LSBX Lawrence Savings Bank North Andover MA NE BIF NASDAQ 05/02/86 18.875
LVSB Lakeview Financial Corp. Paterson NJ MA SAIF NASDAQ 12/22/93 25.281
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 16.625
MAFB MAF Bancorp Inc. Clarendon Hills IL MW SAIF NASDAQ 01/12/90 39.000
MARN Marion Capital Holdings Marion IN MW SAIF NASDAQ 03/18/93 28.000
MASB MASSBANK Corp. Reading MA NE BIF NASDAQ 05/28/86 51.000
MBB MSB Bancorp, Inc. Goshen NY MA BIF AMSE NA 36.375
MBLF MBLA Financial Corp. Macon MO MW SAIF NASDAQ 06/24/93 27.500
MBSP Mitchell Bancorp Inc. Spruce Pine NC SE SAIF NASDAQ 07/12/96 17.000
MCBN Mid-Coast Bancorp Inc. Waldoboro ME NE SAIF NASDAQ 11/02/89 38.000
MDBK Medford Bancorp Inc. Medford MA NE BIF NASDAQ 03/18/86 43.000
MECH MECH Financial Inc. Hartford CT NE BIF NASDAQ 06/26/96 29.000
METF Metropolitan Financial Corp. Mayfield Heights OH MW SAIF NASDAQ NA 16.625
MFBC MFB Corp. Mishawaka IN MW SAIF NASDAQ 03/25/94 26.250
MFFC Milton Federal Financial Corp. West Milton OH MW SAIF NASDAQ 10/07/94 16.125
MFLR Mayflower Co-operative Bank Middleboro MA NE BIF NASDAQ 12/23/87 27.000
MIFC Mid-Iowa Financial Corp. Newton IA MW SAIF NASDAQ 10/14/92 12.125
MONT Montgomery Financial Corp. Crawfordsville IN MW SAIF NASDAQ 07/01/97 13.125
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 17.000
MWBI Midwest Bancshares Inc. Burlington IA MW SAIF NASDAQ 11/12/92 16.000
MWBX MetroWest Bank Framingham MA NE BIF NASDAQ 10/10/86 7.875
Source: SNL Securities and F&C calculations.
3
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
NASB North American Savings Bank Grandview MO MW SAIF NASDAQ 09/27/85 69.000
NBN Northeast Bancorp Auburn ME NE BIF AMSE 08/19/87 17.250
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 21.125
NHTB New Hampshire Thrift Bncshrs Newport NH NE SAIF NASDAQ 05/22/86 20.625
NMSB NewMil Bancorp Inc. New Milford CT NE BIF NASDAQ 02/01/86 13.875
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95 17.500
NSSY NSS Bancorp Inc. Norwalk CT NE BIF NASDAQ 06/16/94 42.625
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 21.625
OCFC Ocean Financial Corp. Toms River NJ MA SAIF NASDAQ 07/03/96 36.563
OFCP Ottawa Financial Corp. Holland MI MW SAIF NASDAQ 08/19/94 29.250
OHSL OHSL Financial Corp. Cincinnati OH MW SAIF NASDAQ 02/10/93 33.750
PBCI Pamrapo Bancorp Inc. Bayonne NJ MA SAIF NASDAQ 11/14/89 27.750
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 23.250
PDB Piedmont Bancorp Inc. Hillsborough NC SE SAIF AMSE 12/08/95 10.625
PEEK Peekskill Financial Corp. Peekskill NY MA SAIF NASDAQ 12/29/95 16.875
PERM Permanent Bancorp Inc. Evansville IN MW SAIF NASDAQ 04/04/94 36.000
PFDC Peoples Bancorp Auburn IN MW SAIF NASDAQ 07/07/87 22.500
PFFB PFF Bancorp Inc. Pomona CA WE SAIF NASDAQ 03/29/96 20.438
PFNC Progress Financial Corp. Blue Bell PA MA SAIF NASDAQ 07/18/83 18.375
PFSB PennFed Financial Services Inc West Orange NJ MA SAIF NASDAQ 07/15/94 18.500
PFSL Pocahontas FS&LA (MHC) Pocahontas AR SE SAIF NASDAQ 04/05/94 45.875
PHBK Peoples Heritage Finl Group Portland ME NE BIF NASDAQ 12/04/86 46.750
PHFC Pittsburgh Home Financial Corp Pittsburgh PA MA SAIF NASDAQ 04/01/96 17.875
PHSB Peoples Home Savings Bk (MHC) Beaver Falls PA MA SAIF NASDAQ 07/10/97 19.750
PRBC Prestige Bancorp Inc. Pleasant Hills PA MA SAIF NASDAQ 06/27/96 19.250
PSFC Peoples-Sidney Financial Corp. Sidney OH MW SAIF NASDAQ 04/28/97 18.000
PSFI PS Financial Inc. Chicago IL MW SAIF NASDAQ 11/27/96 14.125
PTRS Potters Financial Corp. East Liverpool OH MW SAIF NASDAQ 12/31/93 18.750
PULS Pulse Bancorp South River NJ MA SAIF NASDAQ 09/18/86 26.625
PVFC PVF Capital Corp. Bedford Heights OH MW SAIF NASDAQ 12/30/92 24.000
PVSA Parkvale Financial Corp. Monroeville PA MA SAIF NASDAQ 07/16/87 31.250
PWBC PennFirst Bancorp Inc. Ellwood City PA MA SAIF NASDAQ 06/13/90 19.313
PWBK Pennwood Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 07/15/96 18.750
QCBC Quaker City Bancorp Inc. Whittier CA WE SAIF NASDAQ 12/30/93 22.625
QCFB QCF Bancorp Inc. Virginia MN MW SAIF NASDAQ 04/03/95 28.250
QCSB Queens County Bancorp Inc. Flushing NY MA BIF NASDAQ 11/23/93 42.125
RARB Raritan Bancorp Inc. Bridgewater NJ MA BIF NASDAQ 03/01/87 26.500
RELY Reliance Bancorp Inc. Garden City NY MA SAIF NASDAQ 03/31/94 37.250
RIVR River Valley Bancorp Madison IN MW SAIF NASDAQ 12/20/96 19.500
ROSE TR Financial Corp. Garden City NY MA BIF NASDAQ 06/29/93 35.500
RSLN Roslyn Bancorp Inc. Roslyn NY MA BIF NASDAQ 01/13/97 23.594
SCBS Southern Community Bancshares Cullman AL SE SAIF NASDAQ 12/23/96 18.500
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95 23.750
SFFC StateFed Financial Corp. Des Moines IA MW SAIF NASDAQ 01/05/94 14.500
SFIN Statewide Financial Corp. Jersey City NJ MA SAIF NASDAQ 10/02/95 22.750
SFSL Security First Corp. Mayfield Heights OH MW SAIF NASDAQ 01/22/88 22.500
SISB SIS Bancorp Inc. Springfield MA NE BIF NASDAQ 02/08/95 39.500
SKAN Skaneateles Bancorp Inc. Skaneateles NY MA BIF NASDAQ 06/02/86 19.375
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO MW SAIF NASDAQ 04/13/94 21.750
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 21.250
SOPN First Savings Bancorp Inc. Southern Pines NC SE SAIF NASDAQ 01/06/94 24.625
SPBC St. Paul Bancorp Inc. Chicago IL MW SAIF NASDAQ 05/18/87 26.188
SSB Scotland Bancorp Inc. Laurinburg NC SE SAIF AMSE 04/01/96 10.188
SSM Stone Street Bancorp Inc. Mocksville NC SE SAIF AMSE 04/01/96 20.250
STFR St. Francis Capital Corp. Brookfield WI MW SAIF NASDAQ 06/21/93 46.500
STSA Sterling Financial Corp. Spokane WA WE SAIF NASDAQ NA 25.500
SVRN Sovereign Bancorp Inc. Wyomissing PA MA SAIF NASDAQ 08/12/86 21.875
SZB SouthFirst Bancshares Inc. Sylacauga AL SE SAIF AMSE 02/14/95 22.000
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 22.000
THRD TF Financial Corp. Newtown PA MA SAIF NASDAQ 07/13/94 27.250
Source: SNL Securities and F&C calculations.
4
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 15.000
TSH Teche Holding Co. Franklin LA SW SAIF AMSE 04/19/95 21.750
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 14.750
UBMT United Financial Corp. Great Falls MT WE SAIF NASDAQ 09/23/86 28.250
USAB USABancshares Inc. Philadelphia PA MA BIF NASDAQ NA 12.250
VABF Virginia Beach Fed. Financial Virginia Beach VA SE SAIF NASDAQ 11/01/80 19.625
WAMU Washington Mutual Inc. Seattle WA WE BIF NASDAQ 03/11/83 73.938
WBST Webster Financial Corp. Waterbury CT NE SAIF NASDAQ 12/12/86 66.500
WCBI Westco Bancorp Inc. Westchester IL MW SAIF NASDAQ 06/26/92 29.375
WCFB Webster City Federal SB (MHC) Webster City IA MW SAIF NASDAQ 08/15/94 20.875
WEFC Wells Financial Corp. Wells MN MW SAIF NASDAQ 04/11/95 18.750
WFI Winton Financial Corp. Cincinnati OH MW SAIF AMSE 08/04/88 28.500
WFSL Washington Federal Inc. Seattle WA WE SAIF NASDAQ 11/17/82 29.000
WOFC Western Ohio Financial Corp. Springfield OH MW SAIF NASDAQ 07/29/94 26.000
WRNB Warren Bancorp Inc. Peabody MA NE BIF NASDAQ 07/09/86 24.000
WSB Washington Savings Bank, FSB Bowie MD MA SAIF AMSE NA 8.313
WSFS WSFS Financial Corp. Wilmington DE MA BIF NASDAQ 11/26/86 21.875
WSTR WesterFed Financial Corp. Missoula MT WE SAIF NASDAQ 01/10/94 25.875
WVFC WVS Financial Corp. Pittsburgh PA MA SAIF NASDAQ 11/29/93 38.750
WYNE Wayne Bancorp Inc. Wayne NJ MA SAIF NASDAQ 06/27/96 28.750
YFCB Yonkers Financial Corp. Yonkers NY MA SAIF NASDAQ 04/18/96 20.000
YFED York Financial Corp. York PA MA SAIF NASDAQ 02/01/84 25.500
Maximum 115.750
Minimum 7.875
Average 26.337
Median 22.250
Source: SNL Securities and F&C calculations.
5
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
AABC 12.90 9.65 143.98 143.98 12.46 -- 105,639 8.65 8.65 1.12 1.34
ABBK 75.92 21.52 208.96 229.65 14.27 0.96 531,986 6.83 6.25 0.97 0.77
ABCL 230.64 20.68 176.16 178.24 16.91 1.53 1,363,825 9.60 9.50 1.39 0.85
ABCW 402.81 23.30 312.28 317.40 20.75 0.72 1,941,180 6.65 6.54 1.91 0.96
AFBC 21.55 NA 131.10 131.10 19.95 1.61 108,032 15.22 15.22 NA 0.84
AFED 27.57 21.51 122.32 122.32 17.25 1.40 160,408 12.52 12.52 0.93 0.79
AHCI 82.36 65.95 136.80 136.80 15.56 1.26 529,309 11.37 11.37 0.29 (0.61)
ALBC 8.08 25.04 133.24 133.24 11.41 0.99 70,810 8.56 8.56 0.43 0.49
ALBK 635.66 15.68 176.78 227.59 15.57 1.46 4,083,097 8.81 6.98 3.14 1.18
AMFC 16.99 24.82 114.97 114.97 16.99 1.59 100,003 14.77 14.77 0.71 0.71
ANA 58.78 21.27 128.56 128.56 21.78 1.99 274,018 16.95 16.95 1.04 0.95
ANDB 207.35 16.42 193.35 193.35 15.65 1.90 1,322,745 8.10 8.10 2.44 1.04
ASBI 66.28 21.13 149.20 149.31 16.96 3.12 390,868 11.37 11.36 0.97 0.81
ASBP 23.31 22.27 134.56 134.56 20.82 2.81 113,176 15.46 15.46 0.64 0.92
ASFC 1,620.99 21.86 190.85 274.27 15.40 1.29 10,528,393 8.54 6.24 2.83 0.77
BDJI 19.97 23.26 165.15 165.15 16.80 -- 118,838 10.18 10.18 0.86 0.66
BFD 122.49 19.99 141.15 146.46 12.57 1.26 974,680 8.37 8.09 1.11 0.67
BFSB 33.27 20.51 159.33 159.33 24.30 1.92 136,908 14.52 14.52 1.42 1.19
BKC 122.14 17.90 212.03 219.27 19.11 2.89 639,013 9.02 8.75 2.94 1.15
BKCT 101.84 20.83 216.92 216.92 22.99 2.60 443,025 10.60 10.60 0.96 1.24
BNKU 1,528.44 22.19 249.48 255.95 12.20 1.32 12,523,459 4.89 4.77 2.18 0.61
BPLS 295.35 20.89 162.93 178.99 7.09 -- 4,167,806 4.35 3.98 0.73 0.38
BVCC 720.27 24.66 248.61 299.41 13.29 1.12 3,246,476 5.35 4.48 1.45 0.61
CAFI 84.85 18.97 173.29 186.79 16.30 2.05 520,582 9.41 8.78 1.39 0.94
CASB 50.07 19.93 170.92 170.92 11.85 -- 422,530 6.94 6.94 0.74 0.64
CASH 61.58 18.75 139.57 156.46 15.11 2.10 407,592 10.83 9.77 1.22 0.90
CATB 82.77 21.03 115.47 115.47 28.09 1.79 294,656 24.32 24.32 0.85 1.34
CBCI 115.45 15.98 141.45 141.45 23.72 -- 486,626 16.77 16.77 2.30 1.62
CBSA 164.67 14.68 159.05 187.11 5.66 1.46 2,911,410 3.60 3.08 2.24 0.40
CEBK 63.37 24.62 175.75 194.39 17.26 0.99 367,096 9.82 8.97 1.31 0.75
CENB 47.15 26.67 152.91 152.91 46.10 1.73 102,281 30.15 30.15 4.34 1.63
CFB 1,420.71 17.28 250.71 278.00 15.98 0.62 7,189,342 6.38 5.79 2.04 0.95
CFCP 102.83 20.95 305.13 305.13 18.24 1.64 563,866 5.97 5.97 1.05 1.04
CFFC 38.71 20.72 155.05 155.77 21.13 1.85 182,879 13.63 13.58 1.46 1.07
CFNC 32.99 23.72 123.14 123.14 27.96 1.39 114,660 22.71 22.71 0.73 1.17
CFSB 221.57 23.30 327.98 327.98 25.98 1.79 852,888 7.92 7.92 1.25 1.18
CFTP 86.21 29.10 126.44 126.44 37.70 1.72 228,656 26.46 26.46 0.64 1.33
CIBI 16.24 16.98 146.22 146.22 16.94 1.78 95,876 11.58 11.58 1.06 0.97
CKFB 17.77 21.13 119.60 119.60 28.27 2.44 62,865 21.89 21.89 0.97 1.37
CLAS 26.32 28.93 131.66 154.34 19.82 1.38 132,793 15.06 13.14 0.70 0.64
CMRN 51.88 21.09 114.67 114.67 24.58 1.38 211,253 21.44 21.44 0.96 1.16
CMSB 341.19 30.00 158.85 201.15 15.04 1.52 2,268,595 9.47 7.63 0.70 0.50
CNIT 124.37 24.53 254.76 278.17 18.63 1.52 701,708 6.95 6.40 3.22 0.78
CNSB 30.17 35.78 126.12 126.12 30.82 1.32 97,891 24.44 24.44 0.51 0.87
COFI 4,190.08 20.64 304.38 325.84 21.20 1.52 19,760,265 6.97 6.54 3.18 1.10
COOP 58.94 28.62 208.33 208.33 15.97 -- 369,121 7.67 7.67 0.69 0.60
CRSB 54.25 NA NM NM 27.07 -- 134,538 2.88 2.88 NA NA
CRZY 16.47 21.84 114.69 114.69 27.10 2.32 60,774 23.64 23.64 0.79 1.30
CSBF 11.55 55.00 105.04 111.61 24.25 -- 47,602 23.10 22.04 0.25 0.45
CVAL 76.76 25.92 266.24 266.24 23.47 1.25 325,643 8.82 8.82 1.36 0.95
DCBI 41.35 22.37 143.29 143.29 38.37 1.13 107,747 26.78 26.78 0.95 1.62
DIBK 156.21 9.63 197.07 202.34 16.30 1.59 958,503 8.27 8.07 3.14 1.92
DIME 300.07 27.11 161.16 186.44 20.16 1.33 1,488,074 12.51 11.00 0.89 0.86
DME 3,476.20 26.67 264.38 322.28 15.91 0.54 21,848,000 6.02 4.99 1.12 0.60
DNFC 252.50 20.26 257.42 259.83 13.91 0.66 1,815,315 5.40 5.36 1.37 0.79
DSL 857.88 19.67 199.40 201.91 14.70 1.00 5,835,825 7.37 7.29 1.63 0.76
EBSI 122.24 19.61 166.47 166.47 13.08 2.81 934,458 7.83 7.83 1.09 0.77
EFBC 46.66 NA 116.05 116.05 42.21 1.67 110,540 36.37 36.37 NA NA
EFBI 65.53 33.00 202.33 202.45 21.75 3.03 301,261 10.75 10.75 1.00 0.75
Source: SNL Securities and F&C calculations.
6
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
EMLD 111.60 19.64 230.13 233.30 18.48 1.27 603,965 8.03 7.93 1.12 0.98
EQSB 38.32 17.70 228.76 228.76 11.90 -- 321,687 5.20 5.20 1.78 0.74
ESBK 21.22 22.04 142.78 142.78 9.19 2.23 230,981 6.32 6.32 1.30 0.42
FAB 176.32 NA 126.48 126.48 15.21 -- 1,159,508 11.17 11.17 NA 0.54
FBBC 136.72 17.50 187.33 187.33 20.24 1.91 675,684 10.80 10.80 1.20 1.06
FBCI 70.37 23.36 137.21 137.44 14.37 1.60 489,673 10.47 10.45 1.07 0.61
FBCV 29.69 23.09 129.27 131.58 11.60 0.98 255,927 8.98 8.83 1.18 0.49
FBER 59.44 26.27 151.35 151.35 20.47 0.96 290,435 13.52 13.52 0.79 0.78
FBSI 36.97 20.18 157.42 157.42 22.67 0.60 161,527 14.40 14.40 0.83 1.12
FCB 34.37 42.19 147.10 147.10 35.22 1.02 97,564 23.94 23.94 0.56 0.85
FCBF 124.57 22.55 170.01 170.01 23.96 2.48 519,911 14.10 14.10 1.43 1.15
FCME 18.69 18.58 126.26 126.26 12.77 -- 146,400 10.11 10.11 0.74 0.68
FDEF 131.11 25.63 122.71 122.71 22.62 2.34 579,698 18.44 18.44 0.60 0.94
FED 422.37 18.90 189.52 191.16 10.15 -- 4,160,115 5.36 5.31 2.11 0.55
FESX 185.58 21.99 203.85 231.87 15.50 2.27 1,197,459 7.60 6.75 1.12 0.73
FFBH 128.52 22.83 157.75 157.75 23.49 1.07 547,119 14.89 14.89 1.15 1.01
FFBZ 39.38 23.81 273.52 273.82 18.86 1.12 208,840 7.61 7.60 1.05 0.92
FFCH 349.86 23.85 302.99 302.99 19.51 1.62 1,793,325 6.44 6.44 2.17 0.86
FFDB 27.43 17.21 158.33 172.48 15.34 2.11 178,792 9.69 8.97 1.38 0.96
FFED 29.32 15.37 186.75 186.75 13.59 4.27 215,821 7.28 7.28 0.61 0.68
FFES 108.23 17.94 161.55 161.55 11.01 1.70 982,747 6.82 6.82 2.23 0.63
FFFD 73.29 19.34 145.42 145.42 33.02 1.43 221,954 22.72 22.72 1.16 1.78
FFHH 60.91 18.18 122.40 122.40 14.97 2.50 402,850 10.91 10.91 1.10 0.82
FFHS 31.59 20.87 148.79 149.55 13.70 1.51 230,504 9.21 9.17 1.27 0.68
FFIC 192.68 21.68 141.21 146.97 17.70 1.31 1,088,476 12.54 12.10 1.13 0.88
FFKY 88.70 14.72 167.71 177.41 22.93 2.61 388,329 13.67 13.02 1.46 1.61
FFLC 73.94 21.70 143.74 143.74 18.48 1.82 400,237 12.85 12.85 0.91 0.95
FFOH 100.67 21.18 156.66 177.69 18.81 1.78 535,100 12.01 10.74 0.85 0.90
FFSL 14.31 20.83 125.94 125.94 12.59 2.00 113,669 9.99 9.99 0.72 0.65
FFSX 101.33 31.09 249.30 251.23 22.08 1.34 458,940 8.85 8.79 1.15 0.71
FFWC 27.54 15.32 149.72 164.22 14.33 1.90 191,298 9.57 8.81 1.24 1.01
FFWD 53.02 26.32 248.76 248.76 31.84 1.70 166,546 12.80 12.80 0.76 1.29
FFYF 139.91 17.81 167.44 167.44 22.76 2.33 614,749 13.59 13.59 1.93 1.27
FGHC 32.81 23.89 237.31 255.95 19.72 3.72 166,386 8.30 7.75 0.45 0.94
FIBC 44.02 15.33 159.94 160.64 14.28 1.94 308,248 8.93 8.90 1.68 0.99
FISB 342.04 24.55 223.51 226.13 21.20 1.78 1,613,405 9.49 9.39 1.10 0.95
FKFS 41.02 16.04 163.78 163.78 10.84 1.18 378,527 6.62 6.62 1.06 0.73
FKKY 27.12 27.92 120.33 120.33 20.42 4.78 132,809 16.96 16.96 0.60 0.72
FLAG 40.49 24.84 186.44 186.44 16.98 1.71 238,463 9.11 9.11 0.80 0.72
FLFC 263.45 26.98 272.22 299.56 20.66 1.29 1,275,398 7.59 6.95 1.26 0.79
FLGS 319.54 13.36 262.94 273.71 15.72 1.03 2,033,260 5.98 5.75 1.75 1.43
FLKY 14.42 27.50 101.37 101.37 28.90 3.31 49,880 28.50 28.50 0.55 1.17
FMCO 82.98 15.31 219.94 223.19 14.27 0.81 581,660 6.49 6.40 2.27 1.02
FMSB 75.29 17.38 245.63 245.63 16.89 1.10 445,762 6.88 6.88 1.05 1.03
FNGB 119.42 21.43 161.68 161.68 17.89 2.67 667,696 11.06 11.06 0.63 0.90
FSBI 48.12 18.30 178.68 178.68 12.22 1.17 393,076 6.84 6.84 1.68 0.76
FSNJ 134.63 NA 139.35 139.35 21.95 1.15 610,639 15.75 15.75 NA 0.66
FSPT 194.92 NA 149.05 149.05 39.35 1.36 495,319 26.40 26.40 NA 1.24
FSTC 88.72 17.02 248.83 311.28 25.12 1.00 352,233 10.09 8.24 1.88 1.70
FTF 49.27 16.09 180.41 180.41 27.34 2.00 180,259 15.15 15.15 1.74 1.71
FTFC 289.50 22.50 264.71 279.75 18.75 1.52 1,544,294 7.08 6.72 1.40 0.89
FTSB 22.49 18.60 142.39 142.39 22.51 1.64 99,873 15.82 15.82 0.82 1.23
FWWB 270.30 21.60 167.49 180.84 24.12 1.33 1,136,693 13.38 12.51 1.25 1.15
GAF 146.64 17.43 126.25 127.43 18.70 2.53 783,948 14.81 14.69 1.09 1.08
GDW 5,582.04 16.19 206.88 206.88 14.10 0.51 39,590,271 6.81 6.81 6.04 0.90
GFCO 45.65 19.23 161.16 162.87 14.98 2.00 304,621 9.29 9.20 1.04 0.83
GPT 3,137.01 20.59 218.02 399.82 23.98 1.73 13,083,518 9.70 5.54 1.80 1.08
GSBC 207.23 17.05 316.73 319.48 27.68 1.71 750,458 8.74 8.68 1.51 1.75
GSFC 76.83 26.29 121.35 121.35 42.75 2.46 179,700 35.23 35.23 0.68 1.60
GTPS 35.11 42.86 113.70 113.70 24.73 1.91 141,976 19.93 19.93 0.49 0.63
Source: SNL Securities and F&C calculations.
7
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
GUPB 17.62 20.18 122.84 122.84 15.35 1.82 114,745 12.50 12.50 1.09 0.89
HALL 45.47 16.67 144.19 144.19 11.00 -- 413,511 7.62 7.62 0.93 0.65
HARB 377.09 27.45 373.02 384.42 33.30 1.85 1,128,942 8.93 8.68 2.75 1.24
HARL 50.43 15.05 212.58 212.58 14.48 1.46 347,882 6.81 6.81 2.01 1.02
HAVN 216.32 19.70 191.63 192.23 10.95 1.22 1,974,890 5.72 5.70 1.25 0.63
HBFW 87.36 30.27 205.41 205.41 24.96 0.55 350,038 12.15 12.15 1.21 0.86
HBNK 84.62 18.25 203.91 203.91 15.40 -- 549,638 7.55 7.55 2.00 0.93
HBS 27.82 14.26 128.39 132.92 18.21 2.70 152,796 14.18 13.77 1.56 1.37
HCFC 16.85 18.81 120.39 120.39 23.45 -- 71,854 19.49 19.49 0.99 1.41
HFFB 30.89 20.97 104.50 104.50 30.20 2.42 108,908 26.73 26.73 0.79 1.36
HFFC 87.83 16.03 157.75 157.75 15.13 1.42 580,668 9.58 9.58 1.84 1.00
HFNC 232.10 25.47 139.75 139.75 25.48 2.37 910,786 18.24 18.24 0.53 0.94
HFSA 15.54 20.52 118.79 118.79 13.47 2.76 115,434 11.34 11.34 0.92 0.69
HHFC 13.43 22.82 129.63 129.63 14.42 2.92 93,141 11.12 11.12 0.66 0.67
HIFS 44.32 17.00 207.32 207.32 19.91 1.41 222,584 9.60 9.60 2.00 1.26
HMLK 38.93 NA 127.99 127.99 22.04 1.49 176,683 17.22 17.22 NA 0.99
HMNF 124.33 26.55 147.20 158.56 17.99 -- 691,232 12.22 11.45 1.13 0.78
HOMF 156.16 19.55 249.80 256.95 21.98 1.31 709,412 8.80 8.58 1.56 1.22
HPBC 47.89 14.86 218.12 218.12 22.93 3.08 208,815 10.51 10.51 1.75 1.64
HRBF 42.02 26.12 144.09 144.09 17.99 1.93 233,572 12.49 12.49 0.95 0.72
HRZB 140.74 17.16 165.86 165.86 26.41 2.33 532,767 15.93 15.93 1.10 1.55
HTHR 60.08 11.71 141.99 141.99 6.47 -- 928,197 4.56 4.56 1.66 1.26
HZFS 13.86 24.25 153.59 153.59 15.62 1.11 88,769 10.16 10.16 0.67 0.68
INBI 112.26 21.36 184.41 184.41 30.84 2.55 364,023 16.72 16.72 1.03 1.48
IPSW 33.39 19.44 282.26 282.26 14.69 1.14 227,244 5.21 5.21 0.72 0.97
ITLA 167.27 13.54 168.38 NA 16.47 -- 1,015,909 9.78 NA 1.57 1.37
IWBK 337.55 19.27 253.01 257.35 17.03 1.81 1,982,317 6.73 6.62 2.18 0.95
JSB 539.40 17.05 146.76 146.76 35.14 2.94 1,535,031 23.94 23.94 3.19 2.13
JSBA 270.40 25.71 219.69 280.08 21.49 1.04 1,257,753 9.03 7.22 1.05 0.76
JXVL 49.18 14.80 142.83 142.83 20.89 2.48 235,405 14.63 14.63 1.36 1.49
KFBI 229.86 24.73 144.47 158.08 23.57 1.48 975,207 15.07 13.96 0.93 1.07
KNK 49.55 18.43 131.03 139.00 14.43 1.33 343,409 11.01 10.45 1.96 0.86
KSBK 22.92 14.68 198.29 207.63 15.01 0.54 152,752 7.56 7.25 1.26 1.05
KYF 17.55 18.18 123.67 123.67 21.05 3.57 86,307 17.02 17.02 0.77 1.11
LARK 39.68 18.65 120.57 120.57 16.98 1.70 233,640 14.09 14.09 1.26 0.98
LARL 47.03 17.03 208.53 208.53 22.04 1.60 213,379 10.57 10.57 1.27 1.40
LFBI 50.02 33.65 138.94 150.66 16.23 0.99 324,425 11.68 10.87 0.60 0.51
LOGN 22.07 18.23 133.38 133.38 25.62 2.29 86,115 19.21 19.21 0.96 1.53
LSBI 27.95 19.18 147.77 147.77 13.53 1.31 206,584 8.58 8.58 1.59 0.72
LSBX 80.93 10.49 215.22 215.22 22.49 -- 359,855 10.45 10.45 1.80 2.29
LVSB 108.35 26.61 215.16 262.25 20.76 0.50 472,691 9.65 8.06 0.95 0.90
LXMO 18.63 23.75 109.88 117.16 20.15 1.81 92,450 18.34 17.39 0.70 1.14
MAFB 585.50 16.60 222.22 252.26 16.93 0.72 3,457,664 7.62 6.77 2.35 1.13
MARN 49.89 18.42 125.11 127.85 26.00 3.14 191,854 20.78 20.43 1.52 1.58
MASB 182.11 19.92 175.50 178.07 19.68 1.96 925,403 11.21 11.07 2.56 1.03
MBB 103.46 32.48 162.39 304.65 13.37 1.54 773,991 9.84 6.23 1.12 0.54
MBLF 34.48 20.37 123.21 123.21 15.62 1.46 223,558 12.68 12.68 1.35 0.82
MBSP 15.83 28.33 109.25 109.25 43.84 2.35 36,103 40.13 40.13 0.60 1.51
MCBN 9.01 20.65 172.49 172.49 14.38 1.37 62,632 8.34 8.34 1.84 0.71
MDBK 195.27 18.70 192.39 204.47 17.20 1.86 1,135,572 8.94 8.46 2.30 1.01
MECH 153.50 11.79 173.34 173.34 17.20 -- 892,371 9.92 9.92 2.46 1.59
METF 117.23 21.59 319.71 347.80 12.67 -- 924,985 3.96 3.65 0.77 0.65
MFBC 42.70 22.25 127.37 127.37 16.17 1.30 264,097 12.70 12.70 1.18 0.82
MFFC 36.55 28.79 132.06 132.06 16.70 3.72 218,826 11.84 11.84 0.56 0.62
MFLR 24.28 19.15 188.68 191.63 18.41 2.96 131,908 9.75 9.62 1.41 1.00
MIFC 20.73 15.16 163.63 163.85 15.32 0.66 135,345 9.36 9.35 0.80 1.10
MONT 21.70 NA 110.39 110.39 20.53 1.68 105,671 18.60 18.60 NA 0.73
MSBF 20.94 20.24 160.98 160.98 27.14 1.77 77,444 16.86 16.86 0.84 1.40
MWBI 16.33 15.84 152.96 152.96 11.06 1.50 147,724 7.23 7.23 1.01 0.77
MWBX 111.10 14.86 248.42 248.42 18.25 1.52 608,941 7.35 7.35 0.53 1.32
Source: SNL Securities and F&C calculations.
8
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
NASB 154.54 15.72 247.93 255.37 21.05 1.45 734,091 8.49 8.26 4.39 1.36
NBN 38.55 26.14 182.35 202.23 13.76 1.23 278,733 8.26 7.58 0.66 0.64
NEIB 36.26 17.46 136.20 136.20 19.57 1.61 190,319 14.37 14.37 1.21 1.20
NHTB 43.07 17.05 168.50 194.94 13.54 2.91 317,989 8.04 7.03 1.21 0.80
NMSB 53.82 21.02 162.47 162.47 15.14 2.31 355,526 9.32 9.32 0.66 0.87
NSLB 12.00 26.92 105.17 105.93 20.76 2.86 57,823 19.74 19.62 0.65 0.71
NSSY 103.46 58.39 189.53 195.26 15.42 0.94 670,749 8.14 7.92 0.73 0.33
NWEQ 18.14 16.63 145.92 145.92 18.22 2.78 99,558 11.61 11.61 1.30 1.02
OCFC 287.12 20.54 133.20 133.20 19.00 2.19 1,510,947 14.27 14.27 1.78 0.98
OFCP 155.41 22.85 203.55 250.21 17.54 1.37 885,817 8.62 7.13 1.28 0.83
OHSL 41.88 21.63 156.25 156.25 17.53 2.61 238,905 10.90 10.90 1.56 0.84
PBCI 78.89 16.72 162.57 163.62 20.94 4.04 376,714 12.88 12.81 1.66 1.31
PCBC 19.25 20.04 117.66 117.66 22.64 1.72 85,030 19.24 19.24 1.16 1.08
PDB 29.23 18.97 138.71 138.71 22.45 3.77 130,167 16.18 16.18 0.56 1.22
PEEK 52.77 25.19 113.48 113.48 28.65 2.13 184,215 25.24 25.24 0.67 1.09
PERM 75.87 30.00 174.17 176.21 18.03 1.22 419,819 10.00 9.89 1.20 0.61
PFDC 76.08 18.00 169.81 169.81 25.92 1.96 294,291 15.26 15.26 1.25 1.49
PFFB 366.98 26.54 136.71 138.09 13.27 -- 2,765,855 9.70 9.62 0.77 0.52
PFNC 74.67 26.63 297.33 354.05 15.13 0.65 493,406 5.09 4.31 0.69 0.70
PFSB 178.45 16.52 160.59 187.44 12.09 0.76 1,475,509 6.96 6.02 1.12 0.81
PFSL 74.89 32.31 302.61 302.61 19.23 1.96 389,405 6.36 6.36 1.42 0.62
PHBK 1,296.72 18.41 272.91 363.25 19.08 1.88 6,795,337 6.99 5.35 2.54 1.25
PHFC 35.20 18.06 142.77 144.50 11.75 1.34 299,669 8.23 8.14 0.99 0.71
PHSB 54.51 NA 190.45 190.45 25.03 1.22 217,735 13.14 13.14 NA 0.75
PRBC 17.61 21.39 112.70 112.70 12.29 1.04 143,263 10.91 10.91 0.90 0.57
PSFC 32.14 NA 113.56 113.56 30.25 1.56 106,239 24.74 24.74 NA 1.14
PSFI 29.29 NA 95.70 95.70 35.71 3.40 85,698 37.32 37.32 NA 2.10
PTRS 18.31 15.76 165.78 165.78 14.88 1.07 122,637 8.97 8.97 1.19 0.98
PULS 82.33 15.04 186.06 186.06 15.24 3.01 539,322 8.20 8.20 1.77 1.08
PVFC 63.82 13.87 221.20 221.20 16.11 -- 396,214 7.28 7.28 1.73 1.29
PVSA 160.26 15.47 197.91 199.04 15.66 1.92 1,019,143 7.91 7.87 2.02 1.07
PWBC 101.79 17.88 148.56 166.78 11.18 1.86 910,770 7.52 6.76 1.08 0.68
PWBK 10.32 21.80 111.87 111.87 21.87 1.92 47,211 17.98 17.98 0.86 0.98
QCBC 105.39 18.25 143.83 143.83 12.41 -- 852,154 8.63 8.63 1.24 0.70
QCFB 39.04 13.85 145.54 145.54 25.57 -- 152,668 17.57 17.57 2.04 1.62
QCSB 628.20 26.66 318.41 318.41 39.18 1.90 1,603,269 10.64 10.64 1.58 1.59
RARB 62.86 17.43 203.69 206.55 15.40 2.26 408,308 7.56 7.46 1.52 1.01
RELY 358.87 20.03 187.00 274.50 16.00 1.93 2,243,100 8.55 5.99 1.86 0.85
RIVR 23.21 NA 131.76 133.65 16.76 1.03 138,461 12.72 12.56 NA 0.61
ROSE 624.73 20.29 244.15 244.15 16.26 1.92 3,843,056 6.27 6.27 1.75 0.87
RSLN 1,029.70 NA 163.85 164.65 28.60 1.36 3,601,079 17.45 17.38 NA 1.25
SCBS 21.04 21.26 149.19 149.19 29.68 1.62 70,893 19.89 19.89 0.87 1.20
SFED 28.70 26.39 133.95 133.95 16.45 1.35 174,428 12.29 12.29 0.90 0.61
SFFC 22.61 20.14 144.42 144.42 25.49 1.38 88,608 17.66 17.66 0.72 1.27
SFIN 102.58 17.91 158.65 158.87 14.85 1.93 703,112 9.36 9.35 1.27 0.81
SFSL 169.39 21.03 268.50 272.73 25.13 1.42 677,876 9.36 9.23 1.07 1.37
SISB 274.44 18.81 217.39 217.39 15.83 1.62 1,733,618 7.24 7.24 2.10 0.87
SKAN 27.84 17.78 157.52 161.86 10.87 1.45 256,101 6.90 6.73 1.09 0.66
SMBC 34.73 26.52 132.06 132.06 21.93 2.30 159,926 16.60 16.60 0.82 0.80
SOBI 16.66 32.20 119.72 119.72 18.55 1.51 87,553 14.39 14.39 0.66 0.61
SOPN 91.24 19.70 133.04 133.04 30.29 4.06 300,816 22.77 22.77 1.25 1.75
SPBC 895.75 18.57 214.30 214.83 19.65 1.53 4,557,336 9.17 9.15 1.41 1.09
SSB 19.50 15.67 131.80 131.80 31.72 1.96 61,473 24.07 24.07 0.65 1.65
SSM 38.44 24.70 123.70 123.70 35.56 2.27 108,092 28.75 28.75 0.82 1.45
STFR 244.19 20.76 188.03 210.88 15.28 1.20 1,597,648 8.27 7.44 2.24 0.75
STSA 193.03 22.37 187.64 203.03 10.29 -- 1,876,250 5.48 5.09 1.14 0.51
SVRN 2,504.09 24.04 287.45 346.12 14.26 0.37 14,336,283 5.43 4.66 0.91 0.69
SZB 21.47 24.72 134.15 137.67 12.98 2.73 165,388 9.67 9.45 0.89 0.69
THR 18.14 21.78 138.19 138.63 18.61 2.00 97,487 13.46 13.43 1.01 0.84
THRD 86.85 25.71 156.97 188.06 14.55 1.76 597,047 8.39 7.10 1.06 0.66
Source: SNL Securities and F&C calculations.
9
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
TRIC 17.51 19.48 126.69 126.69 19.46 2.67 89,999 15.36 15.36 0.77 1.05
TSH 74.77 18.91 135.18 135.18 18.30 2.30 408,591 13.54 13.54 1.15 0.94
TWIN 18.71 20.77 133.48 133.48 17.22 2.71 108,687 12.89 12.89 0.71 0.83
UBMT 47.98 23.16 139.58 139.58 33.53 3.54 103,082 24.02 24.02 1.22 1.40
USAB 8.97 47.12 182.02 184.77 13.96 -- 64,269 8.43 8.32 0.26 0.47
VABF 97.74 30.66 221.50 221.50 15.86 1.22 616,188 7.16 7.16 0.64 0.54
WAMU 19,043.47 23.47 355.47 381.71 19.64 1.57 96,981,099 5.47 5.13 3.15 0.87
WBST 907.94 18.84 237.58 272.43 12.93 1.20 7,019,621 5.44 4.78 3.53 0.77
WCBI 72.39 18.02 148.96 148.96 22.91 2.32 315,944 15.38 15.38 1.63 1.41
WCFB 44.03 32.12 196.93 196.93 46.30 3.83 95,121 23.50 23.50 0.65 1.45
WEFC 36.74 16.59 123.93 123.93 18.24 2.56 201,436 14.71 14.71 1.13 1.06
WFI 57.20 19.79 234.38 238.69 17.33 1.75 329,897 7.39 7.27 1.44 0.91
WFSL 1,519.19 14.36 205.82 223.25 26.54 3.01 5,713,308 12.90 12.01 2.02 1.87
WOFC 63.16 32.50 111.11 119.05 15.41 3.85 397,425 13.87 13.06 0.80 0.43
WRNB 91.35 16.44 228.14 228.14 24.62 2.17 370,993 10.79 10.79 1.46 1.61
WSB 36.53 27.71 162.05 162.05 13.79 1.20 264,904 8.51 8.51 0.30 0.52
WSFS 272.56 17.22 314.30 316.11 17.99 -- 1,515,217 5.73 5.69 1.27 1.10
WSTR 144.43 19.90 134.00 164.91 13.94 1.86 1,035,096 10.40 8.62 1.30 0.76
WVFC 67.94 18.28 218.31 218.31 23.26 3.10 292,022 10.66 10.66 2.12 1.31
WYNE 57.90 27.91 170.52 170.52 21.44 0.70 270,043 12.57 12.57 1.03 0.76
YFCB 60.42 18.69 134.50 134.50 18.21 1.40 331,802 13.54 13.54 1.07 1.04
YFED 225.72 25.00 215.37 215.37 19.09 2.04 1,182,276 8.86 8.86 1.02 0.80
Maximum 19,043.47 65.95 373.02 399.82 46.30 4.78 96,981,099 40.13 40.13 6.04 2.29
Minimum 8.08 9.63 95.70 95.70 5.66 -- 36,103 2.88 2.88 0.25 (0.61)
Average 286.48 21.71 175.75 183.86 19.74 1.63 1,591,481 12.22 11.97 1.32 0.98
Median 65.53 20.62 161.07 164.22 18.24 1.59 359,855 10.18 10.14 1.13 0.94
Source: SNL Securities and F&C calculations.
10
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
AABC 20.89 N 03/20/98 1.58 2.57 1.05 4.90 60.86
ABBK 11.15 N 03/20/98 0.17 22.69 0.23 0.71 10.20
ABCL 9.25 N 03/20/98 0.27 23.19 0.31 0.79 8.16
ABCW 14.70 N 03/20/98 0.97 21.39 0.52 1.03 15.64
AFBC 5.42 N 03/20/98 0.79 26.15 0.19 0.74 4.87
AFED 5.91 N 03/20/98 0.30 20.83 0.24 0.78 6.19
AHCI (4.75) N 03/20/98 0.62 34.15 0.14 0.42 3.47
ALBC 5.46 N 03/20/98 0.12 22.43 0.12 0.53 6.17
ALBK 12.92 N 03/20/98 0.70 11.19 1.10 1.55 17.41
AMFC 4.39 N 03/20/98 NA 27.54 0.16 0.57 3.95
ANA 5.44 N 03/20/98 0.50 20.49 0.27 0.96 5.57
ANDB 12.97 N 03/20/98 0.62 15.90 0.63 1.03 12.95
ASBI 7.20 N 03/20/98 NA 25.63 0.20 0.65 5.79
ASBP 5.87 N 03/20/98 0.08 22.27 0.16 0.89 5.73
ASFC 9.55 N 03/20/98 0.52 22.75 0.68 0.75 8.66
BDJI 6.05 N 03/20/98 0.03 19.23 0.26 0.75 7.17
BFD 7.37 N 03/20/98 0.18 21.33 0.26 0.61 7.06
BFSB 8.34 N 03/20/98 -- 22.06 0.33 1.10 7.72
BKC 13.74 N 03/20/98 2.11 19.07 0.69 1.05 12.47
BKCT 12.02 N 03/20/98 0.91 20.83 0.24 1.20 11.38
BNKU 11.99 N 03/20/98 0.68 19.51 0.62 0.66 13.15
BPLS 7.06 N 03/20/98 1.66 15.25 0.25 0.46 10.94
BVCC 10.00 N 03/20/98 0.51 25.54 0.35 0.58 10.33
CAFI 9.78 N 03/20/98 0.29 25.36 0.26 0.66 6.90
CASB 9.80 N 03/20/98 0.35 19.41 0.19 0.65 9.49
CASH 7.97 N 03/20/98 0.74 17.33 0.33 0.90 8.36
CATB 5.19 N 03/20/98 0.35 20.31 0.22 1.31 5.30
CBCI 10.26 N 03/20/98 1.64 12.09 0.76 2.16 13.24
CBSA 11.61 N 03/20/98 0.71 15.22 0.54 0.38 10.86
CEBK 7.43 N 03/20/98 0.42 23.71 0.34 0.73 7.40
CENB 5.91 N 03/20/98 0.58 31.12 0.93 1.38 4.56
CFB 15.76 N 03/20/98 0.84 16.95 0.52 0.94 15.15
CFCP 16.59 N 03/20/98 0.59 22.00 0.25 0.94 15.05
CFFC 7.88 N 03/20/98 0.44 18.01 0.42 1.18 8.76
CFNC 5.06 N 03/20/98 0.10 24.05 0.18 1.11 4.88
CFSB 15.27 N 03/20/98 0.10 22.75 0.32 1.18 15.09
CFTP 4.54 N 03/20/98 0.49 31.04 0.15 1.19 4.43
CIBI 8.33 N 03/20/98 0.65 18.00 0.25 0.89 7.64
CKFB 5.84 N 03/20/98 0.10 19.71 0.26 1.39 6.13
CLAS 4.31 N 03/20/98 0.34 22.01 0.23 0.83 5.55
CMRN 5.26 N 03/20/98 0.38 23.01 0.22 0.99 4.64
CMSB 5.17 N 03/20/98 0.42 30.88 0.17 0.45 4.88
CNIT 10.96 N 03/20/98 0.45 20.79 0.95 0.91 12.75
CNSB 3.54 N 03/20/98 0.13 32.59 0.14 0.90 3.68
COFI 15.66 N 03/20/98 0.30 21.59 0.76 0.96 13.56
COOP 7.76 N 03/20/98 0.07 29.04 0.17 0.61 7.90
CRSB NA N 03/20/98 0.54 13.84 0.28 1.82 73.66
CRZY 5.11 N 03/20/98 0.18 20.54 0.21 1.27 5.36
CSBF 1.85 N 03/20/98 NA 31.25 0.11 0.77 3.25
CVAL 11.04 N 03/20/98 0.25 24.48 0.36 0.96 11.03
DCBI 5.82 N 03/20/98 0.35 24.15 0.22 1.48 5.56
DIBK 24.02 N 03/20/98 0.29 9.11 0.83 1.88 23.11
DIME 5.86 N 03/20/98 0.53 26.22 0.23 0.78 6.08
DME 11.05 N 03/20/98 1.06 33.95 0.22 0.49 8.31
DNFC 14.13 N 03/20/98 0.29 20.40 0.34 0.70 13.21
DSL 10.64 N 03/20/98 0.89 15.41 0.52 0.94 12.99
EBSI 9.06 N 03/20/98 1.18 17.81 0.30 0.81 9.69
EFBC NA N 03/20/98 -- 26.47 0.17 1.49 4.04
EFBI 6.28 N 03/20/98 -- 34.38 0.24 0.70 6.28
Source: SNL Securities and F&C calculations.
11
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
EMLD 12.77 N 03/20/98 0.35 20.37 0.27 0.97 12.19
EQSB 14.65 N 03/20/98 0.38 18.31 0.43 0.70 13.55
ESBK 6.57 N 03/20/98 0.69 14.05 0.51 0.64 9.97
FAB 4.79 N 03/20/98 0.35 26.64 0.19 0.55 4.69
FBBC 10.03 N 03/20/98 0.09 16.94 0.31 1.08 10.01
FBCI 5.90 N 03/20/98 NA 18.38 0.34 0.78 7.54
FBCV 5.85 N 03/20/98 1.23 20.64 0.33 0.55 6.29
FBER 5.26 N 03/20/98 0.75 24.70 0.21 0.78 5.66
FBSI 8.06 N 03/20/98 0.04 18.21 0.23 1.23 8.80
FCB 3.44 N 03/20/98 -- 29.53 0.20 1.27 4.92
FCBF 7.69 N 03/20/98 0.26 19.20 0.42 1.22 8.75
FCME 7.06 N 03/20/98 0.49 16.37 0.21 0.80 8.08
FDEF 4.57 N 03/20/98 0.33 34.94 0.11 0.64 3.37
FED 11.05 N 03/20/98 0.96 17.19 0.58 0.60 11.48
FESX 10.03 N 03/20/98 0.54 20.52 0.30 0.79 10.45
FFBH 6.51 N 03/20/98 0.96 22.63 0.29 0.97 6.49
FFBZ 12.01 N 03/20/98 0.57 31.25 0.20 0.69 9.02
FFCH 13.90 N 03/20/98 1.35 23.52 0.55 0.87 13.66
FFDB 9.89 N 03/20/98 0.99 17.46 0.34 0.93 9.63
FFED 11.84 N 03/20/98 0.30 23.44 0.10 0.58 8.19
FFES 9.71 N 03/20/98 0.25 17.24 0.58 0.65 9.77
FFFD 7.61 N 03/20/98 NA 19.34 0.29 1.71 7.49
FFHH 7.15 N 03/20/98 0.22 19.23 0.26 0.74 6.74
FFHS 7.60 N 03/20/98 0.32 18.40 0.36 0.76 8.27
FFIC 6.08 N 03/20/98 0.27 20.42 0.30 0.85 6.37
FFKY 11.79 N 03/20/98 0.07 15.35 0.35 1.51 11.01
FFLC 6.79 N 03/20/98 0.19 19.75 0.25 0.97 7.40
FFOH 6.93 N 03/20/98 0.18 21.43 0.21 0.86 6.84
FFSL 6.26 N 03/20/98 0.89 20.83 0.18 0.64 6.25
FFSX 8.40 N 03/20/98 0.14 33.10 0.27 0.70 7.82
FFWC 10.28 N 03/20/98 0.31 14.39 0.33 0.99 10.25
FFWD 10.30 N 03/20/98 0.02 27.78 0.18 1.21 9.56
FFYF 9.23 N 03/20/98 0.62 17.54 0.49 1.25 9.14
FGHC 11.32 N 03/20/98 1.64 17.92 0.15 1.12 13.49
FIBC 10.50 N 03/20/98 1.89 15.33 0.42 0.94 10.31
FISB 9.87 N 03/20/98 1.38 24.11 0.28 0.94 9.72
FKFS 10.47 N 03/20/98 1.15 17.00 0.25 0.64 9.65
FKKY 3.42 N 03/20/98 -- 17.45 0.24 1.14 6.25
FLAG 7.98 N 03/20/98 3.92 24.84 0.20 0.69 7.75
FLFC 10.52 N 03/20/98 1.00 24.29 0.35 0.87 11.61
FLGS 22.94 N 03/20/98 3.04 12.99 0.45 1.41 21.01
FLKY 3.64 N 03/20/98 2.25 23.63 0.16 1.20 4.15
FMCO 15.74 N 03/20/98 1.15 15.24 0.57 0.99 15.00
FMSB 15.27 N 03/20/98 -- 16.29 0.28 1.06 15.58
FNGB 7.98 N 03/20/98 0.09 19.85 0.17 0.91 8.19
FSBI 11.16 N 03/20/98 0.15 18.75 0.41 0.68 10.02
FSNJ 5.87 N 03/20/98 0.90 28.49 0.13 0.74 4.74
FSPT 6.93 N 03/20/98 0.28 25.58 0.43 1.43 5.40
FSTC 17.58 N 03/20/98 1.12 19.51 0.41 1.41 14.00
FTF 10.91 N 03/20/98 0.07 17.07 0.41 1.58 10.33
FTFC 13.57 N 03/20/98 0.32 23.16 0.34 0.86 12.50
FTSB 7.53 N 03/20/98 2.04 18.15 0.21 1.24 7.75
FWWB 8.00 N 03/20/98 0.19 21.77 0.31 1.06 7.79
GAF 6.80 N 03/20/98 0.22 16.96 0.28 1.01 6.92
GDW 13.93 N 03/20/98 1.07 15.28 1.60 0.94 13.98
GFCO 8.78 N 03/20/98 0.06 18.52 0.27 0.87 9.29
GPT 10.64 N 03/20/98 2.90 19.30 0.48 1.11 11.68
GSBC 20.23 N 03/20/98 1.84 16.51 0.39 1.72 20.10
GSFC 4.48 N 03/20/98 0.07 26.29 0.17 1.54 4.37
GTPS 3.02 N 03/20/98 NA 35.00 0.15 0.73 3.65
Source: SNL Securities and F&C calculations.
12
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
GUPB 6.09 N 03/20/98 0.24 18.33 0.30 0.82 6.50
HALL 9.09 N 03/20/98 0.09 16.15 0.24 0.68 9.10
HARB 14.73 N 03/19/98 0.51 26.22 0.72 1.28 14.72
HARL 15.66 N 03/20/98 -- 15.76 0.48 0.95 14.11
HAVN 10.51 N 03/20/98 0.66 18.11 0.34 0.63 10.79
HBFW 6.48 N 03/20/98 -- 33.91 0.27 0.73 5.92
HBNK 12.51 N 03/20/98 1.94 13.22 0.69 1.26 16.43
HBS 9.41 N 03/20/98 0.67 8.43 0.66 2.18 15.52
HCFC 9.28 N 03/20/98 0.36 19.40 0.24 1.41 7.21
HFFB 5.06 N 03/20/98 -- 20.70 0.20 1.32 4.89
HFFC 10.68 N 03/20/98 0.33 13.92 0.53 1.09 11.42
HFNC 4.61 N 03/20/98 0.79 30.68 0.11 0.82 4.43
HFSA 5.56 N 03/20/98 0.19 18.88 0.25 0.67 5.91
HHFC 5.68 N 03/20/98 0.03 26.90 0.14 0.51 4.64
HIFS 13.00 N 03/20/98 0.77 16.67 0.51 1.25 12.77
HMLK 7.49 N 03/20/98 0.15 21.31 0.22 0.98 5.39
HMNF 5.43 N 03/20/98 NA 32.61 0.23 0.60 4.36
HOMF 14.31 N 03/20/98 0.55 19.55 0.39 1.23 14.16
HPBC 15.43 N 03/20/98 -- 14.44 0.45 1.62 15.37
HRBF 5.55 N 03/20/98 0.53 29.54 0.21 0.64 4.92
HRZB 9.90 N 03/20/98 -- 16.27 0.29 1.66 10.24
HTHR 25.89 N 03/20/98 NA 10.80 0.45 1.39 26.03
HZFS 6.70 N 03/20/98 0.96 22.57 0.18 0.72 7.12
INBI 8.38 N 03/20/98 0.23 19.64 0.28 1.53 9.11
IPSW 16.95 N 03/20/98 0.95 18.42 0.19 0.92 17.15
ITLA 13.26 N 03/20/98 NA 12.65 0.42 1.41 13.75
IWBK 14.38 N 03/20/98 0.69 21.43 0.49 0.80 12.33
JSB 9.26 N 03/20/98 NA 11.33 1.20 3.21 13.61
JSBA 9.32 N 03/20/98 0.67 29.35 0.23 0.70 7.92
JXVL 9.90 N 03/20/98 0.70 15.72 0.32 1.33 9.18
KFBI 6.11 N 03/20/98 0.02 26.14 0.22 0.88 5.84
KNK 7.88 N 03/20/98 0.89 18.82 0.48 0.83 7.51
KSBK 14.06 N 03/20/98 NA 13.60 0.34 1.07 14.32
KYF 6.70 N 03/20/98 0.04 21.88 0.16 0.94 5.55
LARK 6.94 N 03/20/98 0.15 17.80 0.33 0.97 6.87
LARL 13.48 N 03/20/98 0.42 17.44 0.31 1.37 12.98
LFBI 3.93 N 03/20/98 0.90 28.04 0.18 0.57 4.75
LOGN 7.81 N 03/20/98 0.62 14.58 0.30 1.71 8.96
LSBI 8.17 N 03/20/98 1.01 17.73 0.43 0.75 8.75
LSBX 25.38 N 03/20/98 0.52 5.69 0.83 4.28 44.00
LVSB 8.48 N 03/20/98 1.27 26.33 0.24 0.78 7.70
LXMO 4.33 N 03/20/98 0.54 23.09 0.18 0.99 4.59
MAFB 14.48 N 03/20/98 0.26 17.11 0.57 1.05 13.71
MARN 7.09 N 03/20/98 1.43 25.00 0.28 1.08 5.07
MASB 9.73 N 03/20/98 0.19 19.92 0.64 1.02 9.29
MBB 6.17 N 03/20/98 0.78 29.33 0.31 0.60 6.81
MBLF 6.41 N 03/20/98 0.48 19.64 0.35 0.83 6.54
MBSP 3.62 N 03/20/98 1.77 32.69 0.13 1.20 3.02
MCBN 8.34 N 03/20/98 0.85 19.39 0.49 0.75 8.84
MDBK 11.38 N 03/20/98 0.16 16.80 0.64 1.08 12.07
MECH 15.78 N 03/20/98 0.58 20.71 0.35 0.86 8.48
METF 16.43 N 03/20/98 0.52 16.63 0.25 0.75 19.14
MFBC 5.99 N 03/20/98 -- 22.63 0.29 0.76 5.82
MFFC 4.67 N 03/20/98 0.09 31.01 0.13 0.54 4.49
MFLR 10.40 N 03/20/98 0.65 18.24 0.37 1.02 10.56
MIFC 11.83 N 03/20/98 0.21 15.16 0.20 1.07 11.37
MONT 4.61 N 03/20/98 0.75 25.24 0.13 0.77 4.08
MSBF 8.16 N 03/20/98 0.02 20.24 0.21 1.36 8.16
MWBI 11.14 N 03/20/98 0.73 15.38 0.26 0.76 10.83
MWBX 17.83 N 03/20/98 0.58 15.14 0.13 1.26 17.10
Source: SNL Securities and F&C calculations.
13
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
NASB 17.26 N 03/20/98 3.07 13.91 1.24 1.51 18.18
NBN 8.18 N 03/20/98 1.24 19.60 0.22 0.84 10.56
NEIB 7.78 N 03/20/98 0.17 16.00 0.33 1.28 8.66
NHTB 10.43 N 03/20/98 0.44 16.11 0.32 0.82 10.33
NMSB 8.55 N 03/20/98 0.78 17.34 0.20 1.01 9.94
NSLB 3.56 N 03/20/98 0.01 31.25 0.14 0.64 3.24
NSSY 4.07 N 03/20/98 1.14 18.06 0.59 0.86 10.70
NWEQ 8.78 N 03/20/98 1.33 15.45 0.35 1.10 9.45
OCFC 6.04 N 03/20/98 0.45 19.04 0.48 0.96 6.55
OFCP 9.47 N 03/20/98 0.27 22.16 0.33 0.86 10.02
OHSL 7.55 N 03/20/98 0.03 24.82 0.34 0.70 6.43
PBCI 9.87 N 03/20/98 1.70 18.26 0.38 1.15 8.88
PCBC 5.72 N 03/20/98 0.01 22.36 0.26 0.95 4.94
PDB 7.26 N 03/20/98 1.13 20.43 0.13 1.13 6.88
PEEK 4.23 N 03/20/98 0.77 26.37 0.16 1.01 3.92
PERM 6.49 N 03/20/98 0.70 29.03 0.31 0.63 6.47
PFDC 9.78 N 03/20/98 0.25 18.75 0.30 1.40 9.21
PFFB 5.02 N 03/20/98 1.38 21.29 0.24 0.61 6.14
PFNC 13.37 N 03/20/98 0.50 28.71 0.16 0.64 12.09
PFSB 10.98 N 03/20/98 0.55 16.52 0.28 0.76 10.60
PFSL 9.72 N 03/20/98 0.13 34.75 0.33 0.58 9.16
PHBK 16.13 N 03/20/98 0.75 16.46 0.71 1.24 17.38
PHFC 6.51 N 03/20/98 1.68 17.19 0.26 0.67 6.86
PHSB 6.92 N 03/20/98 0.38 29.04 0.17 0.81 6.10
PRBC 5.03 N 03/20/98 0.43 30.08 0.16 0.39 3.35
PSFC 5.75 N 03/20/98 0.82 22.50 0.20 1.27 5.13
PSFI 5.43 N 03/20/98 0.68 18.59 0.19 1.98 5.24
PTRS 10.54 N 03/20/98 0.17 24.67 0.19 0.60 6.71
PULS 13.56 N 03/20/98 0.85 15.85 0.42 1.02 12.69
PVFC 18.16 N 03/20/98 0.96 13.33 0.45 1.26 17.48
PVSA 14.71 N 03/20/98 0.36 15.02 0.52 1.08 14.56
PWBC 8.64 N 03/20/98 0.45 17.88 0.27 0.67 8.21
PWBK 5.28 N 03/20/98 0.74 29.30 0.16 0.70 3.85
QCBC 8.08 N 03/20/98 1.33 17.14 0.33 0.72 8.44
QCFB 9.27 N 03/20/98 0.39 12.39 0.57 1.68 9.90
QCSB 12.76 N 03/20/98 0.44 28.46 0.37 1.32 12.38
RARB 12.93 N 03/20/98 0.23 16.99 0.39 0.97 12.93
RELY 10.31 N 03/20/98 0.54 19.01 0.49 0.87 10.30
RIVR 5.14 N 03/20/98 0.71 18.75 0.26 0.81 6.44
ROSE 14.16 N 03/20/98 0.48 18.88 0.47 0.89 14.35
RSLN 6.78 N 03/20/98 0.18 21.85 0.27 1.18 6.90
SCBS 5.66 N 03/20/98 2.17 21.02 0.22 1.22 6.05
SFED 4.87 N 03/20/98 0.82 25.82 0.23 0.56 4.63
SFFC 7.21 N 03/20/98 1.74 20.14 0.18 1.24 7.05
SFIN 8.46 N 03/20/98 0.33 17.23 0.33 0.81 8.62
SFSL 14.78 N 03/20/98 0.43 20.09 0.28 1.36 14.68
SISB 12.13 N 03/20/98 0.44 16.19 0.61 0.93 13.02
SKAN 9.47 N 03/20/98 1.89 18.63 0.26 0.61 8.63
SMBC 4.96 N 03/20/98 0.83 33.98 0.16 0.66 4.05
SOBI 3.95 N 03/20/98 0.26 31.25 0.17 0.59 4.06
SOPN 7.43 N 03/20/98 0.20 19.24 0.32 1.74 7.61
SPBC 12.25 N 03/20/98 0.17 18.19 0.36 1.07 11.87
SSB 5.17 N 03/20/98 -- 28.30 0.09 1.00 4.31
SSM 4.52 N 03/20/98 -- 26.64 0.19 1.35 4.39
STFR 9.18 N 03/20/98 0.21 22.36 0.52 0.66 8.30
STSA 9.51 N 03/20/98 0.73 19.32 0.33 0.54 10.11
SVRN 12.55 N 03/20/98 0.63 19.53 0.28 0.80 15.13
SZB 5.35 N 03/20/98 0.29 18.97 0.29 0.73 6.83
THR 6.12 N 03/20/98 0.95 22.92 0.24 0.78 5.70
THRD 6.28 N 03/20/98 0.29 25.23 0.27 0.61 7.45
Source: SNL Securities and F&C calculations.
14
FERGUSON & COMPANY
- ------------------
Exhibit II.1 -- Select Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
TRIC 6.89 N 03/20/98 -- 20.83 0.18 0.98 6.46
TSH 6.97 N 03/20/98 0.38 19.42 0.28 0.90 6.66
TWIN 6.49 N 03/20/98 0.08 21.69 0.17 0.77 6.04
UBMT 6.04 N 03/20/98 0.35 21.40 0.33 1.53 6.52
USAB 4.08 N 03/20/98 0.57 20.42 0.15 0.87 9.19
VABF 7.84 N 03/20/98 0.40 28.86 0.17 0.58 8.28
WAMU 15.29 N 03/20/98 0.83 20.54 0.90 0.95 17.13
WBST 14.06 N 03/20/98 0.65 16.79 0.99 0.81 14.99
WCBI 9.14 N 03/20/98 0.19 17.91 0.41 1.38 8.94
WCFB 6.18 N 03/20/98 0.06 32.62 0.16 1.46 6.23
WEFC 7.48 N 03/20/98 NA 16.74 0.28 1.04 7.22
WFI 12.63 N 03/20/98 0.22 17.81 0.40 0.98 13.41
WFSL 15.35 N 03/20/98 0.60 14.50 0.50 1.88 14.64
WOFC 3.16 N 03/20/98 0.44 32.50 0.20 0.40 2.89
WRNB 15.53 N 03/20/98 0.83 17.14 0.35 1.53 14.19
WSB 6.25 N 03/20/98 NA 34.64 0.06 0.39 4.59
WSFS 20.00 N 03/20/98 1.23 18.23 0.30 1.00 17.34
WSTR 6.94 N 03/20/98 0.29 17.97 0.36 0.80 7.53
WVFC 11.03 N 03/20/98 0.20 16.70 0.58 1.44 11.95
WYNE 5.64 N 03/20/98 0.92 31.25 0.23 0.66 5.26
YFCB 7.00 N 03/20/98 0.49 19.23 0.26 0.92 6.63
YFED 9.36 N 03/20/98 1.01 27.72 0.23 0.74 8.44
Maximum 25.89 3.92 35.00 1.60 4.90 73.66
Minimum (4.75) -- 2.57 0.06 0.38 2.89
Average 9.22 0.61 21.12 0.34 1.01 9.69
Median 8.34 0.47 19.85 0.28 0.92 8.44
Source: SNL Securities and F&C calculations.
15
FERGUSON & COMPANY
- ------------------
Exhibit II.2 -- Select Midwest Region Publicly Held Thrifts
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
ABCL Alliance Bancorp Inc. Hinsdale IL MW SAIF NASDAQ 07/07/92 28.750
ABCW Anchor BanCorp Wisconsin Madison WI MW SAIF NASDAQ 07/16/92 44.500
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 17.625
ASBI Ameriana Bancorp New Castle IN MW SAIF NASDAQ 03/02/87 20.500
ASBP ASB Financial Corp. Portsmouth OH MW SAIF NASDAQ 05/11/95 14.250
BDJI First Federal Bancorp. Bemidji MN MW SAIF NASDAQ 04/04/95 20.000
CAFI Camco Financial Corp. Cambridge OH MW SAIF NASDAQ NA 26.375
CASH First Midwest Financial Inc. Storm Lake IA MW SAIF NASDAQ 09/20/93 22.875
CBCI Calumet Bancorp Inc. Dolton IL MW SAIF NASDAQ 02/20/92 36.750
CFB Commercial Federal Corp. Omaha NE MW SAIF NYSE 12/31/84 35.250
CFSB CFSB Bancorp Inc. Lansing MI MW SAIF NASDAQ 06/22/90 29.125
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 18.000
CKFB CKF Bancorp Inc. Danville KY MW SAIF NASDAQ 01/04/95 20.500
CLAS Classic Bancshares Inc. Ashland KY MW SAIF NASDAQ 12/29/95 20.250
CMRN Cameron Financial Corp Cameron MO MW SAIF NASDAQ 04/03/95 20.250
CNSB CNS Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 06/12/96 18.250
COFI Charter One Financial Cleveland OH MW SAIF NASDAQ 01/22/88 65.625
CSBF CSB Financial Group Inc. Centralia IL MW SAIF NASDAQ 10/09/95 13.750
DCBI Delphos Citizens Bancorp Inc. Delphos OH MW SAIF NASDAQ 11/21/96 21.250
DNFC D & N Financial Corp. Hancock MI MW SAIF NASDAQ 02/13/85 27.750
EFBI Enterprise Federal Bancorp West Chester OH MW SAIF NASDAQ 10/17/94 33.000
EMLD Emerald Financial Corp. Strongsville OH MW SAIF NASDAQ 10/05/93 22.000
FBCI Fidelity Bancorp Inc. Chicago IL MW SAIF NASDAQ 12/15/93 25.000
FBCV 1ST Bancorp Vincennes IN MW SAIF NASDAQ 04/07/87 27.250
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 16.750
FCBF FCB Financial Corp. Oshkosh WI MW SAIF NASDAQ 09/24/93 32.250
FDEF First Defiance Financial Defiance OH MW SAIF NASDAQ 10/02/95 15.375
FFBZ First Federal Bancorp Inc. Zanesville OH MW SAIF NASDAQ 07/13/92 25.000
FFED Fidelity Federal Bancorp Evansville IN MW SAIF NASDAQ 08/31/87 9.375
FFFD North Central Bancshares Inc. Fort Dodge IA MW SAIF NASDAQ 03/21/96 22.438
FFHH FSF Financial Corp. Hutchinson MN MW SAIF NASDAQ 10/07/94 20.000
FFHS First Franklin Corp. Cincinnati OH MW SAIF NASDAQ 01/26/88 26.500
FFKY First Federal Financial Corp. Elizabethtown KY MW SAIF NASDAQ 07/15/87 21.484
FFOH Fidelity Financial of Ohio Cincinnati OH MW SAIF NASDAQ 03/04/96 18.000
FFSL First Independence Corp. Independence KS MW SAIF NASDAQ 10/08/93 15.000
FFSX First Fed SB of Siouxland(MHC) Sioux City IA MW SAIF NASDAQ 07/13/92 35.750
FFWC FFW Corp. Wabash IN MW SAIF NASDAQ 04/05/93 19.000
FFWD Wood Bancorp Inc. Bowling Green OH MW SAIF NASDAQ 08/31/93 20.000
FFYF FFY Financial Corp. Youngstown OH MW SAIF NASDAQ 06/28/93 34.375
FISB First Indiana Corp. Indianapolis IN MW SAIF NASDAQ 08/02/83 27.000
FKKY Frankfort First Bancorp Inc. Frankfort KY MW SAIF NASDAQ 07/10/95 16.750
FLGS Flagstar Bancorp Inc. Bloomfield Hills MI MW SAIF NASDAQ NA 23.375
FLKY First Lancaster Bancshares Lancaster KY MW SAIF NASDAQ 07/01/96 15.125
FNGB First Northern Capital Corp. Green Bay WI MW SAIF NASDAQ 12/29/83 13.500
FTFC First Federal Capital Corp. La Crosse WI MW SAIF NASDAQ 11/02/89 31.500
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 15.250
GFCO Glenway Financial Corp. Cincinnati OH MW SAIF NASDAQ 11/30/90 20.000
GSBC Great Southern Bancorp Inc. Springfield MO MW SAIF NASDAQ 12/14/89 25.750
GTPS Great American Bancorp Champaign IL MW SAIF NASDAQ 06/30/95 21.000
HALL Hallmark Capital Corp. West Allis WI MW SAIF NASDAQ 01/03/94 15.500
HBFW Home Bancorp Fort Wayne IN MW SAIF NASDAQ 03/30/95 36.625
HCFC Home City Financial Corp. Springfield OH MW SAIF NASDAQ 12/30/96 18.625
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY MW SAIF NASDAQ 10/04/95 16.563
HFFC HF Financial Corp. Sioux Falls SD MW SAIF NASDAQ 04/08/92 29.500
HFSA Hardin Bancorp Inc. Hardin MO MW SAIF NASDAQ 09/29/95 18.875
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 15.063
HMLK Hemlock Federal Financial Corp Oak Forest IL MW SAIF NASDAQ 04/02/97 18.750
HMNF HMN Financial Inc. Spring Valley MN MW SAIF NASDAQ 06/30/94 30.000
HOMF Home Federal Bancorp Seymour IN MW SAIF NASDAQ 01/23/88 30.500
Source: SNL Securities and F&C calculations.
16
FERGUSON & COMPANY
- ------------------
Exhibit II.2 -- Select Midwest Region Publicly Held Thrifts (Continued)
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 16.250
INBI Industrial Bancorp Inc. Bellevue OH MW SAIF NASDAQ 08/01/95 22.000
JSBA Jefferson Savings Bancorp Ballwin MO MW SAIF NASDAQ 04/08/93 27.000
KNK Kankakee Bancorp Inc. Kankakee IL MW SAIF AMSE 01/06/93 36.125
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 14.000
LARK Landmark Bancshares Inc. Dodge City KS MW SAIF NASDAQ 03/28/94 23.500
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 17.500
LSBI LSB Financial Corp. Lafayette IN MW BIF NASDAQ 02/03/95 30.500
LXMO Lexington B&L Financial Corp. Lexington MO MW SAIF NASDAQ 06/06/96 16.625
MAFB MAF Bancorp Inc. Clarendon Hills IL MW SAIF NASDAQ 01/12/90 39.000
MARN Marion Capital Holdings Marion IN MW SAIF NASDAQ 03/18/93 28.000
MBLF MBLA Financial Corp. Macon MO MW SAIF NASDAQ 06/24/93 27.500
METF Metropolitan Financial Corp. Mayfield Heights OH MW SAIF NASDAQ NA 16.625
MFBC MFB Corp. Mishawaka IN MW SAIF NASDAQ 03/25/94 26.250
MFFC Milton Federal Financial Corp. West Milton OH MW SAIF NASDAQ 10/07/94 16.125
MIFC Mid-Iowa Financial Corp. Newton IA MW SAIF NASDAQ 10/14/92 12.125
MONT Montgomery Financial Corp. Crawfordsville IN MW SAIF NASDAQ 07/01/97 13.125
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 17.000
MWBI Midwest Bancshares Inc. Burlington IA MW SAIF NASDAQ 11/12/92 16.000
NASB North American Savings Bank Grandview MO MW SAIF NASDAQ 09/27/85 69.000
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 21.125
NSLB NS&L Bancorp Inc. Neosho MO MW SAIF NASDAQ 06/08/95 17.500
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 21.625
OFCP Ottawa Financial Corp. Holland MI MW SAIF NASDAQ 08/19/94 29.250
OHSL OHSL Financial Corp. Cincinnati OH MW SAIF NASDAQ 02/10/93 33.750
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 23.250
PERM Permanent Bancorp Inc. Evansville IN MW SAIF NASDAQ 04/04/94 36.000
PFDC Peoples Bancorp Auburn IN MW SAIF NASDAQ 07/07/87 22.500
PSFC Peoples-Sidney Financial Corp. Sidney OH MW SAIF NASDAQ 04/28/97 18.000
PSFI PS Financial Inc. Chicago IL MW SAIF NASDAQ 11/27/96 14.125
PTRS Potters Financial Corp. East Liverpool OH MW SAIF NASDAQ 12/31/93 18.750
PVFC PVF Capital Corp. Bedford Heights OH MW SAIF NASDAQ 12/30/92 24.000
QCFB QCF Bancorp Inc. Virginia MN MW SAIF NASDAQ 04/03/95 28.250
RIVR River Valley Bancorp Madison IN MW SAIF NASDAQ 12/20/96 19.500
SFFC StateFed Financial Corp. Des Moines IA MW SAIF NASDAQ 01/05/94 14.500
SFSL Security First Corp. Mayfield Heights OH MW SAIF NASDAQ 01/22/88 22.500
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO MW SAIF NASDAQ 04/13/94 21.750
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 21.250
SPBC St. Paul Bancorp Inc. Chicago IL MW SAIF NASDAQ 05/18/87 26.188
STFR St. Francis Capital Corp. Brookfield WI MW SAIF NASDAQ 06/21/93 46.500
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 22.000
WCBI Westco Bancorp Inc. Westchester IL MW SAIF NASDAQ 06/26/92 29.375
WCFB Webster City Federal SB (MHC) Webster City IA MW SAIF NASDAQ 08/15/94 20.875
WEFC Wells Financial Corp. Wells MN MW SAIF NASDAQ 04/11/95 18.750
WFI Winton Financial Corp. Cincinnati OH MW SAIF AMSE 08/04/88 28.500
WOFC Western Ohio Financial Corp. Springfield OH MW SAIF NASDAQ 07/29/94 26.000
Maximum 69.000
Minimum 9.375
Average 23.900
Median 21.625
Source: SNL Securities and F&C calculations.
17
FERGUSON & COMPANY
- ------------------
Exhibit II.2 -- Select Midwest Region Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
ABCL 230.64 20.68 176.16 178.24 16.91 1.53 1,363,825 9.60 9.50 1.39 0.85
ABCW 402.81 23.30 312.28 317.40 20.75 0.72 1,941,180 6.65 6.54 1.91 0.96
AMFC 16.99 24.82 114.97 114.97 16.99 1.59 100,003 14.77 14.77 0.71 0.71
ASBI 66.28 21.13 149.20 149.31 16.96 3.12 390,868 11.37 11.36 0.97 0.81
ASBP 23.31 22.27 134.56 134.56 20.82 2.81 113,176 15.46 15.46 0.64 0.92
BDJI 19.97 23.26 165.15 165.15 16.80 -- 118,838 10.18 10.18 0.86 0.66
CAFI 84.85 18.97 173.29 186.79 16.30 2.05 520,582 9.41 8.78 1.39 0.94
CASH 61.58 18.75 139.57 156.46 15.11 2.10 407,592 10.83 9.77 1.22 0.90
CBCI 115.45 15.98 141.45 141.45 23.72 -- 486,626 16.77 16.77 2.30 1.62
CFB 1,420.71 17.28 250.71 278.00 15.98 0.62 7,189,342 6.38 5.79 2.04 0.95
CFSB 221.57 23.30 327.98 327.98 25.98 1.79 852,888 7.92 7.92 1.25 1.18
CIBI 16.24 16.98 146.22 146.22 16.94 1.78 95,876 11.58 11.58 1.06 0.97
CKFB 17.77 21.13 119.60 119.60 28.27 2.44 62,865 21.89 21.89 0.97 1.37
CLAS 26.32 28.93 131.66 154.34 19.82 1.38 132,793 15.06 13.14 0.70 0.64
CMRN 51.88 21.09 114.67 114.67 24.58 1.38 211,253 21.44 21.44 0.96 1.16
CNSB 30.17 35.78 126.12 126.12 30.82 1.32 97,891 24.44 24.44 0.51 0.87
COFI 4,190.08 20.64 304.38 325.84 21.20 1.52 19,760,265 6.97 6.54 3.18 1.10
CSBF 11.55 55.00 105.04 111.61 24.25 -- 47,602 23.10 22.04 0.25 0.45
DCBI 41.35 22.37 143.29 143.29 38.37 1.13 107,747 26.78 26.78 0.95 1.62
DNFC 252.50 20.26 257.42 259.83 13.91 0.66 1,815,315 5.40 5.36 1.37 0.79
EFBI 65.53 33.00 202.33 202.45 21.75 3.03 301,261 10.75 10.75 1.00 0.75
EMLD 111.60 19.64 230.13 233.30 18.48 1.27 603,965 8.03 7.93 1.12 0.98
FBCI 70.37 23.36 137.21 137.44 14.37 1.60 489,673 10.47 10.45 1.07 0.61
FBCV 29.69 23.09 129.27 131.58 11.60 0.98 255,927 8.98 8.83 1.18 0.49
FBSI 36.97 20.18 157.42 157.42 22.67 0.60 161,527 14.40 14.40 0.83 1.12
FCBF 124.57 22.55 170.01 170.01 23.96 2.48 519,911 14.10 14.10 1.43 1.15
FDEF 131.11 25.63 122.71 122.71 22.62 2.34 579,698 18.44 18.44 0.60 0.94
FFBZ 39.38 23.81 273.52 273.82 18.86 1.12 208,840 7.61 7.60 1.05 0.92
FFED 29.32 15.37 186.75 186.75 13.59 4.27 215,821 7.28 7.28 0.61 0.68
FFFD 73.29 19.34 145.42 145.42 33.02 1.43 221,954 22.72 22.72 1.16 1.78
FFHH 60.91 18.18 122.40 122.40 14.97 2.50 402,850 10.91 10.91 1.10 0.82
FFHS 31.59 20.87 148.79 149.55 13.70 1.51 230,504 9.21 9.17 1.27 0.68
FFKY 88.70 14.72 167.71 177.41 22.93 2.61 388,329 13.67 13.02 1.46 1.61
FFOH 100.67 21.18 156.66 177.69 18.81 1.78 535,100 12.01 10.74 0.85 0.90
FFSL 14.31 20.83 125.94 125.94 12.59 2.00 113,669 9.99 9.99 0.72 0.65
FFSX 101.33 31.09 249.30 251.23 22.08 1.34 458,940 8.85 8.79 1.15 0.71
FFWC 27.54 15.32 149.72 164.22 14.33 1.90 191,298 9.57 8.81 1.24 1.01
FFWD 53.02 26.32 248.76 248.76 31.84 1.70 166,546 12.80 12.80 0.76 1.29
FFYF 139.91 17.81 167.44 167.44 22.76 2.33 614,749 13.59 13.59 1.93 1.27
FISB 342.04 24.55 223.51 226.13 21.20 1.78 1,613,405 9.49 9.39 1.10 0.95
FKKY 27.12 27.92 120.33 120.33 20.42 4.78 132,809 16.96 16.96 0.60 0.72
FLGS 319.54 13.36 262.94 273.71 15.72 1.03 2,033,260 5.98 5.75 1.75 1.43
FLKY 14.42 27.50 101.37 101.37 28.90 3.31 49,880 28.50 28.50 0.55 1.17
FNGB 119.42 21.43 161.68 161.68 17.89 2.67 667,696 11.06 11.06 0.63 0.90
FTFC 289.50 22.50 264.71 279.75 18.75 1.52 1,544,294 7.08 6.72 1.40 0.89
FTSB 22.49 18.60 142.39 142.39 22.51 1.64 99,873 15.82 15.82 0.82 1.23
GFCO 45.65 19.23 161.16 162.87 14.98 2.00 304,621 9.29 9.20 1.04 0.83
GSBC 207.23 17.05 316.73 319.48 27.68 1.71 750,458 8.74 8.68 1.51 1.75
GTPS 35.11 42.86 113.70 113.70 24.73 1.91 141,976 19.93 19.93 0.49 0.63
HALL 45.47 16.67 144.19 144.19 11.00 -- 413,511 7.62 7.62 0.93 0.65
HBFW 87.36 30.27 205.41 205.41 24.96 0.55 350,038 12.15 12.15 1.21 0.86
HCFC 16.85 18.81 120.39 120.39 23.45 -- 71,854 19.49 19.49 0.99 1.41
HFFB 30.89 20.97 104.50 104.50 30.20 2.42 108,908 26.73 26.73 0.79 1.36
HFFC 87.83 16.03 157.75 157.75 15.13 1.42 580,668 9.58 9.58 1.84 1.00
HFSA 15.54 20.52 118.79 118.79 13.47 2.76 115,434 11.34 11.34 0.92 0.69
HHFC 13.43 22.82 129.63 129.63 14.42 2.92 93,141 11.12 11.12 0.66 0.67
HMLK 38.93 NA 127.99 127.99 22.04 1.49 176,683 17.22 17.22 NA 0.99
HMNF 124.33 26.55 147.20 158.56 17.99 -- 691,232 12.22 11.45 1.13 0.78
HOMF 156.16 19.55 249.80 256.95 21.98 1.31 709,412 8.80 8.58 1.56 1.22
Source: SNL Securities and F&C calculations.
18
FERGUSON & COMPANY
- ------------------
Exhibit II.2 -- Select Midwest Region Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
HZFS 13.86 24.25 153.59 153.59 15.62 1.11 88,769 10.16 10.16 0.67 0.68
INBI 112.26 21.36 184.41 184.41 30.84 2.55 364,023 16.72 16.72 1.03 1.48
JSBA 270.40 25.71 219.69 280.08 21.49 1.04 1,257,753 9.03 7.22 1.05 0.76
KNK 49.55 18.43 131.03 139.00 14.43 1.33 343,409 11.01 10.45 1.96 0.86
KYF 17.55 18.18 123.67 123.67 21.05 3.57 86,307 17.02 17.02 0.77 1.11
LARK 39.68 18.65 120.57 120.57 16.98 1.70 233,640 14.09 14.09 1.26 0.98
LOGN 22.07 18.23 133.38 133.38 25.62 2.29 86,115 19.21 19.21 0.96 1.53
LSBI 27.95 19.18 147.77 147.77 13.53 1.31 206,584 8.58 8.58 1.59 0.72
LXMO 18.63 23.75 109.88 117.16 20.15 1.81 92,450 18.34 17.39 0.70 1.14
MAFB 585.50 16.60 222.22 252.26 16.93 0.72 3,457,664 7.62 6.77 2.35 1.13
MARN 49.89 18.42 125.11 127.85 26.00 3.14 191,854 20.78 20.43 1.52 1.58
MBLF 34.48 20.37 123.21 123.21 15.62 1.46 223,558 12.68 12.68 1.35 0.82
METF 117.23 21.59 319.71 347.80 12.67 -- 924,985 3.96 3.65 0.77 0.65
MFBC 42.70 22.25 127.37 127.37 16.17 1.30 264,097 12.70 12.70 1.18 0.82
MFFC 36.55 28.79 132.06 132.06 16.70 3.72 218,826 11.84 11.84 0.56 0.62
MIFC 20.73 15.16 163.63 163.85 15.32 0.66 135,345 9.36 9.35 0.80 1.10
MONT 21.70 NA 110.39 110.39 20.53 1.68 105,671 18.60 18.60 NA 0.73
MSBF 20.94 20.24 160.98 160.98 27.14 1.77 77,444 16.86 16.86 0.84 1.40
MWBI 16.33 15.84 152.96 152.96 11.06 1.50 147,724 7.23 7.23 1.01 0.77
NASB 154.54 15.72 247.93 255.37 21.05 1.45 734,091 8.49 8.26 4.39 1.36
NEIB 36.26 17.46 136.20 136.20 19.57 1.61 190,319 14.37 14.37 1.21 1.20
NSLB 12.00 26.92 105.17 105.93 20.76 2.86 57,823 19.74 19.62 0.65 0.71
NWEQ 18.14 16.63 145.92 145.92 18.22 2.78 99,558 11.61 11.61 1.30 1.02
OFCP 155.41 22.85 203.55 250.21 17.54 1.37 885,817 8.62 7.13 1.28 0.83
OHSL 41.88 21.63 156.25 156.25 17.53 2.61 238,905 10.90 10.90 1.56 0.84
PCBC 19.25 20.04 117.66 117.66 22.64 1.72 85,030 19.24 19.24 1.16 1.08
PERM 75.87 30.00 174.17 176.21 18.03 1.22 419,819 10.00 9.89 1.20 0.61
PFDC 76.08 18.00 169.81 169.81 25.92 1.96 294,291 15.26 15.26 1.25 1.49
PSFC 32.14 NA 113.56 113.56 30.25 1.56 106,239 24.74 24.74 NA 1.14
PSFI 29.29 NA 95.70 95.70 35.71 3.40 85,698 37.32 37.32 NA 2.10
PTRS 18.31 15.76 165.78 165.78 14.88 1.07 122,637 8.97 8.97 1.19 0.98
PVFC 63.82 13.87 221.20 221.20 16.11 -- 396,214 7.28 7.28 1.73 1.29
QCFB 39.04 13.85 145.54 145.54 25.57 -- 152,668 17.57 17.57 2.04 1.62
RIVR 23.21 NA 131.76 133.65 16.76 1.03 138,461 12.72 12.56 NA 0.61
SFFC 22.61 20.14 144.42 144.42 25.49 1.38 88,608 17.66 17.66 0.72 1.27
SFSL 169.39 21.03 268.50 272.73 25.13 1.42 677,876 9.36 9.23 1.07 1.37
SMBC 34.73 26.52 132.06 132.06 21.93 2.30 159,926 16.60 16.60 0.82 0.80
SOBI 16.66 32.20 119.72 119.72 18.55 1.51 87,553 14.39 14.39 0.66 0.61
SPBC 895.75 18.57 214.30 214.83 19.65 1.53 4,557,336 9.17 9.15 1.41 1.09
STFR 244.19 20.76 188.03 210.88 15.28 1.20 1,597,648 8.27 7.44 2.24 0.75
THR 18.14 21.78 138.19 138.63 18.61 2.00 97,487 13.46 13.43 1.01 0.84
WCBI 72.39 18.02 148.96 148.96 22.91 2.32 315,944 15.38 15.38 1.63 1.41
WCFB 44.03 32.12 196.93 196.93 46.30 3.83 95,121 23.50 23.50 0.65 1.45
WEFC 36.74 16.59 123.93 123.93 18.24 2.56 201,436 14.71 14.71 1.13 1.06
WFI 57.20 19.79 234.38 238.69 17.33 1.75 329,897 7.39 7.27 1.44 0.91
WOFC 63.16 32.50 111.11 119.05 15.41 3.85 397,425 13.87 13.06 0.80 0.43
Maximum 4,190.08 55.00 327.98 347.80 46.30 4.78 19,760,265 37.32 37.32 4.39 2.10
Minimum 11.55 13.36 95.70 95.70 11.00 -- 47,602 3.96 3.65 0.25 0.43
Average 139.61 21.91 166.78 171.15 20.48 1.74 707,107 13.38 13.19 1.18 1.01
Median 42.70 20.80 147.77 149.55 19.57 1.60 223,558 11.84 11.58 1.09 0.94
Source: SNL Securities and F&C calculations.
19
FERGUSON & COMPANY
- ------------------
Exhibit II.2 -- Select Midwest Region Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
ABCL 9.25 N 03/20/98 0.27 23.19 0.31 0.79 8.16
ABCW 14.70 N 03/20/98 0.97 21.39 0.52 1.03 15.64
AMFC 4.39 N 03/20/98 NA 27.54 0.16 0.57 3.95
ASBI 7.20 N 03/20/98 NA 25.63 0.20 0.65 5.79
ASBP 5.87 N 03/20/98 0.08 22.27 0.16 0.89 5.73
BDJI 6.05 N 03/20/98 0.03 19.23 0.26 0.75 7.17
CAFI 9.78 N 03/20/98 0.29 25.36 0.26 0.66 6.90
CASH 7.97 N 03/20/98 0.74 17.33 0.33 0.90 8.36
CBCI 10.26 N 03/20/98 1.64 12.09 0.76 2.16 13.24
CFB 15.76 N 03/20/98 0.84 16.95 0.52 0.94 15.15
CFSB 15.27 N 03/20/98 0.10 22.75 0.32 1.18 15.09
CIBI 8.33 N 03/20/98 0.65 18.00 0.25 0.89 7.64
CKFB 5.84 N 03/20/98 0.10 19.71 0.26 1.39 6.13
CLAS 4.31 N 03/20/98 0.34 22.01 0.23 0.83 5.55
CMRN 5.26 N 03/20/98 0.38 23.01 0.22 0.99 4.64
CNSB 3.54 N 03/20/98 0.13 32.59 0.14 0.90 3.68
COFI 15.66 N 03/20/98 0.30 21.59 0.76 0.96 13.56
CSBF 1.85 N 03/20/98 NA 31.25 0.11 0.77 3.25
DCBI 5.82 N 03/20/98 0.35 24.15 0.22 1.48 5.56
DNFC 14.13 N 03/20/98 0.29 20.40 0.34 0.70 13.21
EFBI 6.28 N 03/20/98 -- 34.38 0.24 0.70 6.28
EMLD 12.77 N 03/20/98 0.35 20.37 0.27 0.97 12.19
FBCI 5.90 N 03/20/98 NA 18.38 0.34 0.78 7.54
FBCV 5.85 N 03/20/98 1.23 20.64 0.33 0.55 6.29
FBSI 8.06 N 03/20/98 0.04 18.21 0.23 1.23 8.80
FCBF 7.69 N 03/20/98 0.26 19.20 0.42 1.22 8.75
FDEF 4.57 N 03/20/98 0.33 34.94 0.11 0.64 3.37
FFBZ 12.01 N 03/20/98 0.57 31.25 0.20 0.69 9.02
FFED 11.84 N 03/20/98 0.30 23.44 0.10 0.58 8.19
FFFD 7.61 N 03/20/98 NA 19.34 0.29 1.71 7.49
FFHH 7.15 N 03/20/98 0.22 19.23 0.26 0.74 6.74
FFHS 7.60 N 03/20/98 0.32 18.40 0.36 0.76 8.27
FFKY 11.79 N 03/20/98 0.07 15.35 0.35 1.51 11.01
FFOH 6.93 N 03/20/98 0.18 21.43 0.21 0.86 6.84
FFSL 6.26 N 03/20/98 0.89 20.83 0.18 0.64 6.25
FFSX 8.40 N 03/20/98 0.14 33.10 0.27 0.70 7.82
FFWC 10.28 N 03/20/98 0.31 14.39 0.33 0.99 10.25
FFWD 10.30 N 03/20/98 0.02 27.78 0.18 1.21 9.56
FFYF 9.23 N 03/20/98 0.62 17.54 0.49 1.25 9.14
FISB 9.87 N 03/20/98 1.38 24.11 0.28 0.94 9.72
FKKY 3.42 N 03/20/98 -- 17.45 0.24 1.14 6.25
FLGS 22.94 N 03/20/98 3.04 12.99 0.45 1.41 21.01
FLKY 3.64 N 03/20/98 2.25 23.63 0.16 1.20 4.15
FNGB 7.98 N 03/20/98 0.09 19.85 0.17 0.91 8.19
FTFC 13.57 N 03/20/98 0.32 23.16 0.34 0.86 12.50
FTSB 7.53 N 03/20/98 2.04 18.15 0.21 1.24 7.75
GFCO 8.78 N 03/20/98 0.06 18.52 0.27 0.87 9.29
GSBC 20.23 N 03/20/98 1.84 16.51 0.39 1.72 20.10
GTPS 3.02 N 03/20/98 NA 35.00 0.15 0.73 3.65
HALL 9.09 N 03/20/98 0.09 16.15 0.24 0.68 9.10
HBFW 6.48 N 03/20/98 -- 33.91 0.27 0.73 5.92
HCFC 9.28 N 03/20/98 0.36 19.40 0.24 1.41 7.21
HFFB 5.06 N 03/20/98 -- 20.70 0.20 1.32 4.89
HFFC 10.68 N 03/20/98 0.33 13.92 0.53 1.09 11.42
HFSA 5.56 N 03/20/98 0.19 18.88 0.25 0.67 5.91
HHFC 5.68 N 03/20/98 0.03 26.90 0.14 0.51 4.64
HMLK 7.49 N 03/20/98 0.15 21.31 0.22 0.98 5.39
HMNF 5.43 N 03/20/98 NA 32.61 0.23 0.60 4.36
HOMF 14.31 N 03/20/98 0.55 19.55 0.39 1.23 14.16
Source: SNL Securities and F&C calculations.
20
FERGUSON & COMPANY
- ------------------
Exhibit II.2 -- Select Midwest Region Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
HZFS 6.70 N 03/20/98 0.96 22.57 0.18 0.72 7.12
INBI 8.38 N 03/20/98 0.23 19.64 0.28 1.53 9.11
JSBA 9.32 N 03/20/98 0.67 29.35 0.23 0.70 7.92
KNK 7.88 N 03/20/98 0.89 18.82 0.48 0.83 7.51
KYF 6.70 N 03/20/98 0.04 21.88 0.16 0.94 5.55
LARK 6.94 N 03/20/98 0.15 17.80 0.33 0.97 6.87
LOGN 7.81 N 03/20/98 0.62 14.58 0.30 1.71 8.96
LSBI 8.17 N 03/20/98 1.01 17.73 0.43 0.75 8.75
LXMO 4.33 N 03/20/98 0.54 23.09 0.18 0.99 4.59
MAFB 14.48 N 03/20/98 0.26 17.11 0.57 1.05 13.71
MARN 7.09 N 03/20/98 1.43 25.00 0.28 1.08 5.07
MBLF 6.41 N 03/20/98 0.48 19.64 0.35 0.83 6.54
METF 16.43 N 03/20/98 0.52 16.63 0.25 0.75 19.14
MFBC 5.99 N 03/20/98 -- 22.63 0.29 0.76 5.82
MFFC 4.67 N 03/20/98 0.09 31.01 0.13 0.54 4.49
MIFC 11.83 N 03/20/98 0.21 15.16 0.20 1.07 11.37
MONT 4.61 N 03/20/98 0.75 25.24 0.13 0.77 4.08
MSBF 8.16 N 03/20/98 0.02 20.24 0.21 1.36 8.16
MWBI 11.14 N 03/20/98 0.73 15.38 0.26 0.76 10.83
NASB 17.26 N 03/20/98 3.07 13.91 1.24 1.51 18.18
NEIB 7.78 N 03/20/98 0.17 16.00 0.33 1.28 8.66
NSLB 3.56 N 03/20/98 0.01 31.25 0.14 0.64 3.24
NWEQ 8.78 N 03/20/98 1.33 15.45 0.35 1.10 9.45
OFCP 9.47 N 03/20/98 0.27 22.16 0.33 0.86 10.02
OHSL 7.55 N 03/20/98 0.03 24.82 0.34 0.70 6.43
PCBC 5.72 N 03/20/98 0.01 22.36 0.26 0.95 4.94
PERM 6.49 N 03/20/98 0.70 29.03 0.31 0.63 6.47
PFDC 9.78 N 03/20/98 0.25 18.75 0.30 1.40 9.21
PSFC 5.75 N 03/20/98 0.82 22.50 0.20 1.27 5.13
PSFI 5.43 N 03/20/98 0.68 18.59 0.19 1.98 5.24
PTRS 10.54 N 03/20/98 0.17 24.67 0.19 0.60 6.71
PVFC 18.16 N 03/20/98 0.96 13.33 0.45 1.26 17.48
QCFB 9.27 N 03/20/98 0.39 12.39 0.57 1.68 9.90
RIVR 5.14 N 03/20/98 0.71 18.75 0.26 0.81 6.44
SFFC 7.21 N 03/20/98 1.74 20.14 0.18 1.24 7.05
SFSL 14.78 N 03/20/98 0.43 20.09 0.28 1.36 14.68
SMBC 4.96 N 03/20/98 0.83 33.98 0.16 0.66 4.05
SOBI 3.95 N 03/20/98 0.26 31.25 0.17 0.59 4.06
SPBC 12.25 N 03/20/98 0.17 18.19 0.36 1.07 11.87
STFR 9.18 N 03/20/98 0.21 22.36 0.52 0.66 8.30
THR 6.12 N 03/20/98 0.95 22.92 0.24 0.78 5.70
WCBI 9.14 N 03/20/98 0.19 17.91 0.41 1.38 8.94
WCFB 6.18 N 03/20/98 0.06 32.62 0.16 1.46 6.23
WEFC 7.48 N 03/20/98 NA 16.74 0.28 1.04 7.22
WFI 12.63 N 03/20/98 0.22 17.81 0.40 0.98 13.41
WOFC 3.16 N 03/20/98 0.44 32.50 0.20 0.40 2.89
Maximum 22.94 3.07 35.00 1.24 2.16 21.01
Minimum 1.85 -- 12.09 0.10 0.40 2.89
Average 8.54 0.52 21.82 0.29 0.99 8.34
Median 7.69 0.31 20.40 0.26 0.91 7.51
Source: SNL Securities and F&C calculations.
21
FERGUSON & COMPANY
- ------------------
Exhibit II.3 -- Select Illinois Publicly Held Thrifts
Deposit Current
Insurance Stock
Agency Price
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($)
- ------ ---------- ---- ----- ------ ---------- -------- -------- -------
ABCL Alliance Bancorp Inc. Hinsdale IL MW SAIF NASDAQ 07/07/92 28.750
CBCI Calumet Bancorp Inc. Dolton IL MW SAIF NASDAQ 02/20/92 36.750
CSBF CSB Financial Group Inc. Centralia IL MW SAIF NASDAQ 10/09/95 13.750
FBCI Fidelity Bancorp Inc. Chicago IL MW SAIF NASDAQ 12/15/93 25.000
GTPS Great American Bancorp Champaign IL MW SAIF NASDAQ 06/30/95 21.000
HMLK Hemlock Federal Financial Corp Oak Forest IL MW SAIF NASDAQ 04/02/97 18.750
KNK Kankakee Bancorp Inc. Kankakee IL MW SAIF AMSE 01/06/93 36.125
MAFB MAF Bancorp Inc. Clarendon Hills IL MW SAIF NASDAQ 01/12/90 39.000
PSFI PS Financial Inc. Chicago IL MW SAIF NASDAQ 11/27/96 14.125
SPBC St. Paul Bancorp Inc. Chicago IL MW SAIF NASDAQ 05/18/87 26.188
WCBI Westco Bancorp Inc. Westchester IL MW SAIF NASDAQ 06/26/92 29.375
Maximum 39.000
Minimum 13.750
Average 26.256
Median 26.188
Source: SNL Securities and F&C calculations.
22
FERGUSON & COMPANY
- ------------------
Exhibit II.3 -- Select Illinois Publicly Held Thrifts (Continued)
Current Price/ Current Current Current Total Equity/ Equity/ Core Income/
Market LTM Price/ Price/Tang Price/ Dividend Assets Assets Tang Assets EPS Avg Assets
Value Core EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) (%)
Ticker ($M) (x) (%) (%) (%) (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM
- ------ --------- -------- ---------- ---------- ------ -------- --------- -------- ----------- ---- ----------
ABCL 230.64 20.68 176.16 178.24 16.91 1.53 1,363,825 9.60 9.50 1.39 0.85
CBCI 115.45 15.98 141.45 141.45 23.72 -- 486,626 16.77 16.77 2.30 1.62
CSBF 11.55 55.00 105.04 111.61 24.25 -- 47,602 23.10 22.04 0.25 0.45
FBCI 70.37 23.36 137.21 137.44 14.37 1.60 489,673 10.47 10.45 1.07 0.61
GTPS 35.11 42.86 113.70 113.70 24.73 1.91 141,976 19.93 19.93 0.49 0.63
HMLK 38.93 NA 127.99 127.99 22.04 1.49 176,683 17.22 17.22 NA 0.99
KNK 49.55 18.43 131.03 139.00 14.43 1.33 343,409 11.01 10.45 1.96 0.86
MAFB 585.50 16.60 222.22 252.26 16.93 0.72 3,457,664 7.62 6.77 2.35 1.13
PSFI 29.29 NA 95.70 95.70 35.71 3.40 85,698 37.32 37.32 NA 2.10
SPBC 895.75 18.57 214.30 214.83 19.65 1.53 4,557,336 9.17 9.15 1.41 1.09
WCBI 72.39 18.02 148.96 148.96 22.91 2.32 315,944 15.38 15.38 1.63 1.41
Maximum 895.75 55.00 222.22 252.26 35.71 3.40 4,557,336 37.32 37.32 2.35 2.10
Minimum 11.55 15.98 95.70 95.70 14.37 -- 47,602 7.62 6.77 0.25 0.45
Average 194.05 25.50 146.71 151.02 21.42 1.44 1,042,403 16.14 15.91 1.43 1.07
Median 70.37 18.57 137.21 139.00 22.04 1.53 343,409 15.38 15.38 1.41 0.99
Source: SNL Securities and F&C calculations.
23
FERGUSON & COMPANY
- ------------------
Exhibit II.3 -- Select Illinois Publicly Held Thrifts (Continued)
Income/ NPAs/ Price/ Core Income/ Income/
Avg Equity Merger Current Assets Core EPS Avg Assets Avg Equity
(%) Target? Pricing (%) EPS ($) (%) (%)
Ticker LTM (Y/N) Date Mst RctQ (x) Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- ------- -------- -------- ------ -------- ---------- ----------
ABCL 9.25 N 03/20/98 0.27 23.19 0.31 0.79 8.16
CBCI 10.26 N 03/20/98 1.64 12.09 0.76 2.16 13.24
CSBF 1.85 N 03/20/98 NA 31.25 0.11 0.77 3.25
FBCI 5.90 N 03/20/98 NA 18.38 0.34 0.78 7.54
GTPS 3.02 N 03/20/98 NA 35.00 0.15 0.73 3.65
HMLK 7.49 N 03/20/98 0.15 21.31 0.22 0.98 5.39
KNK 7.88 N 03/20/98 0.89 18.82 0.48 0.83 7.51
MAFB 14.48 N 03/20/98 0.26 17.11 0.57 1.05 13.71
PSFI 5.43 N 03/20/98 0.68 18.59 0.19 1.98 5.24
SPBC 12.25 N 03/20/98 0.17 18.19 0.36 1.07 11.87
WCBI 9.14 N 03/20/98 0.19 17.91 0.41 1.38 8.94
Maximum 14.48 1.64 35.00 0.76 2.16 13.71
Minimum 1.85 0.15 12.09 0.11 0.73 3.25
Average 7.90 0.53 21.08 0.35 1.14 8.05
Median 7.88 0.27 18.59 0.34 0.98 7.54
Source: SNL Securities and F&C calculations.
24
FERGUSON & COMPANY
- ------------------
Exhibit II.4 -- Comparatives General
Total Current Current
Number Assets Stock Market
of ($000) Price Value
Ticker Short Name City State Offices Mst RctQ IPO Date ($) ($M)
- ------ ---------- ---- ----- ------- -------- -------- ------- -------
AMFC AMB Financial Corp. Munster IN 4 100,003 04/01/96 17.6250 16.990
BFSB Bedford Bancshares Inc. Bedford VA 3 136,908 08/22/94 29.1250 33.270
CFFC Community Financial Corp. Staunton VA 4 182,879 03/30/88 30.2500 38.710
FBSI First Bancshares Inc. Mountain Grove MO 8 161,527 12/22/93 16.7500 36.970
FTF Texarkana First Financial Corp Texarkana AR 5 180,259 07/07/95 28.0000 49.270
HBS Haywood Bancshares Inc. Waynesville NC 4 152,796 12/18/87 22.2500 27.820
LOGN Logansport Financial Corp. Logansport IN 1 86,115 06/14/95 17.5000 22.070
NEIB Northeast Indiana Bancorp Huntington IN 3 190,319 06/28/95 21.1250 36.260
SFED SFS Bancorp Inc. Schenectady NY 4 174,428 06/30/95 23.7500 28.700
SOBI Sobieski Bancorp Inc. South Bend IN 3 87,553 03/31/95 21.2500 16.660
WHGB WHG Bancshares Corp. Lutherville MD 5 101,331 04/01/96 18.0000 25.000
Maximum 8 190,319 30.25 49.27
Minimum 1 86,115 16.75 16.66
Average 4 141,283 22.33 30.16
Median 4 152,796 21.25 28.70
Source: SNL Securities and F&C calculations.
25
FERGUSON & COMPANY
- ------------------
Exhibit II.5 -- Comparatives Balance Sheet
Total Cash and Backed Net Foreclosed Servicing Total Other
Assets Investments Securities Loans Real Estate Rights Intangibles Assets
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Ticker Short Name Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- -------- ----------- ---------- -------- ----------- --------- ----------- --------
AMFC AMB Financial Corp. 100,003 20,533 3,494 77,093 27 -- -- 2,350
BFSB Bedford Bancshares Inc. 136,908 16,714 19 117,692 -- -- -- 2,502
CFFC Community Financial Corp. 182,879 16,796 -- 160,409 294 7 110 4,880
FBSI First Bancshares Inc. 161,527 19,015 768 138,157 -- -- -- 4,355
FTF Texarkana First Financial Corp 180,259 28,815 9,237 147,100 133 65 -- 4,146
HBS Haywood Bancshares Inc. 152,796 31,607 11,410 114,531 218 2,978 741 2,721
LOGN Logansport Financial Corp. 86,115 18,545 9,932 63,634 106 -- -- 3,830
NEIB Northeast Indiana Bancorp 190,319 17,651 3 168,958 -- -- -- 3,710
SFED SFS Bancorp Inc. 174,428 36,560 16,966 133,786 111 -- -- 3,971
SOBI Sobieski Bancorp Inc. 87,553 16,020 12,512 68,879 152 -- -- 2,502
WHGB WHG Bancshares Corp. 101,331 17,615 2,774 79,321 -- -- -- 4,395
Maximum 190,319 36,560 16,966 168,958 294 2,978 741 4,880
Minimum 86,115 16,020 -- 63,634 -- -- -- 2,350
Average 141,283 21,806 6,101 115,415 95 277 77 3,578
Median 152,796 18,545 3,494 117,692 106 -- -- 3,830
Source: SNL Securities and F&C calculations.
26
FERGUSON & COMPANY
- ------------------
Exhibit II.5 -- Comparatives Balance Sheet (Continued)
Core Risk-Based
Total Total Other Total Common Total Tangible Core Total Tangible Capital/ Capital/
Deposits Borrowings Liabilities Liabilities Equity Equity Capital Capital Capital Capital/ Adj Risk-
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) Tangible Tangible Weightd
Ticker Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Assets (%) Assets (%) Assets (%)
- ------ -------- ---------- ----------- ----------- -------- -------- -------- -------- -------- ---------- ---------- ----------
AMFC 71,786 12,000 1,447 85,233 14,770 14,770 NA NA NA 13.41 13.41 26.61
BFSB 103,387 13,000 640 117,027 19,881 19,881 17,681 17,681 18,290 12.39 12.39 23.13
CFFC 132,962 23,000 1,993 157,955 24,924 24,924 21,184 21,184 22,194 11.67 11.67 17.78
FBSI 120,812 17,055 400 138,267 23,260 23,260 18,664 18,664 18,849 12.45 12.45 19.45
FTF 143,828 6,472 2,643 152,943 27,316 27,316 27,224 27,224 27,982 16.55 16.55 28.54
HBS 118,295 10,500 2,329 131,124 21,672 21,672 NA 21,061 21,795 NA NA NA
LOGN 60,595 6,500 2,478 69,573 16,542 16,542 16,482 16,482 16,727 21.82 21.82 41.64
NEIB 96,969 65,000 1,008 162,977 27,342 27,342 23,031 23,031 24,032 12.84 12.84 22.28
SFED 150,469 -- 2,528 152,997 21,431 21,431 21,431 21,431 22,199 10.40 10.40 20.37
SOBI 57,611 16,850 491 74,952 12,601 12,601 9,166 9,166 9,360 11.85 11.85 28.52
WHGB 76,390 4,000 1,025 81,415 19,916 19,916 15,541 15,541 15,729 16.36 16.36 32.04
Maximum 150,469 65,000 2,643 162,977 27,342 27,342 27,224 27,224 27,982 21.82 21.82 41.64
Minimum 57,611 -- 400 69,573 12,601 12,601 9,166 9,166 9,360 10.40 10.40 17.78
Average 103,009 15,852 1,544 120,406 20,878 20,878 18,934 19,147 19,716 13.97 13.97 26.04
Median 103,387 12,000 1,447 131,124 21,431 21,431 18,664 19,863 20,322 12.65 12.65 24.87
Source: SNL Securities and F&C calculations.
27
FERGUSON & COMPANY
- ------------------
Exhibit II.5 -- Comparatives Balance Sheet (Continued)
NPAs/ Reserves/ Reserves/ Reported Publicly Rep Int Bearing Equivalent Serviced
Assets Assets NPLs Book Value Book Value Liabilities Employees For Others
(%) (%) (%) ($) ($) (%) (Actual) ($000)
Ticker Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ
- ------ -------- --------- --------- ---------- ------------ ----------- ---------- ----------
AMFC NA 0.41 NA 15.33 15.33 116.58 NA --
BFSB -- 0.52 NM 18.28 18.28 119.04 39.00 2,684
CFFC 0.44 0.57 203.68 19.51 19.42 113.11 58.00 9,473
FBSI 0.04 0.32 905.26 10.64 10.64 114.88 65.00 13
FTF 0.07 0.62 NM 15.52 15.52 118.19 35.00 25,496
HBS 0.67 0.48 90.28 17.33 16.74 113.21 34.00 --
LOGN 0.62 0.28 56.84 13.12 13.12 122.53 14.00 --
NEIB 0.17 0.60 353.23 15.51 15.51 116.38 40.00 2,061
SFED 0.82 0.45 58.58 17.73 17.73 113.64 60.00 3,525
SOBI 0.26 0.23 259.74 17.75 17.75 112.35 24.00 --
WHGB 0.95 0.19 19.59 14.34 14.34 118.09 NA NA
Maximum 0.95 0.62 905.26 19.51 19.42 122.53 65.00 25,496
Minimum -- 0.19 19.59 10.64 10.64 112.35 14.00 --
Average 0.40 0.42 243.40 15.91 15.85 116.18 41.00 4,325
Median 0.35 0.45 146.98 15.52 15.52 116.38 39.00 1,037
Source: SNL Securities and F&C calculations.
28
FERGUSON & COMPANY
- ------------------
Exhibit II.6 -- Comparatives Operations
Net Income Return on Core
Average Before Return on Avg Assets Income/ Return on
Assets Net Income Extra Items Avg Assets Before Extra Avg Assets Avg Equity
($000) ($000) ($000) (%) (%) (%) (%)
Ticker Short Name LTM LTM LTM LTM LTM LTM LTM
- ------ ---------- ------- ---------- ----------- ---------- ------------ ---------- ----------
AMFC AMB Financial Corp. 93,053 1,023 1,023 1.10 1.10 0.71 6.83
BFSB Bedford Bancshares Inc. 135,243 1,618 1,618 1.20 1.20 1.19 8.39
CFFC Community Financial Corp. 175,293 1,875 1,875 1.07 1.07 1.07 7.85
FBSI First Bancshares Inc. 161,114 1,870 1,870 1.16 1.16 1.12 8.38
FTF Texarkana First Financial Corp 173,148 3,021 3,021 1.74 1.74 1.71 11.13
HBS Haywood Bancshares Inc. 142,369 1,953 1,953 1.37 1.37 1.37 9.41
LOGN Logansport Financial Corp. 81,892 1,232 1,232 1.50 1.50 1.53 7.71
NEIB Northeast Indiana Bancorp 173,476 2,085 2,085 1.20 1.20 1.20 7.78
SFED SFS Bancorp Inc. 170,319 1,068 1,068 0.63 0.63 0.61 5.04
SOBI Sobieski Bancorp Inc. 82,090 497 497 0.61 0.61 0.61 3.95
WHGB WHG Bancshares Corp. 98,962 752 752 0.76 0.76 0.77 3.61
Maximum 175,293 3,021 3,021 1.74 1.74 1.71 11.13
Minimum 81,892 497 497 0.61 0.61 0.61 3.61
Average 135,178 1,545 1,545 1.12 1.12 1.08 7.28
Median 142,369 1,618 1,618 1.16 1.16 1.12 7.78
Source: SNL Securities and F&C calculations.
29
FERGUSON & COMPANY
- ------------------
Exhibit II.6 -- Comparatives Operations (Continued)
Return on Core Loan Loan Loss Total Total Net Loan Common Dividend
Avg Equity Income/ Loss Provision Noninterest Noninterest Chargeoffs/ LTM EPS Dividends Payout
Before Extra Avg Equity Provision as a % Assets Income Expense Avg Loans After Extra Per Share Ratio
(%) (%) ($000) (%) ($000) ($000) (%) ($) ($) (%)
Ticker LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM
- ------ ------------ ---------- --------- ------------- ----------- ----------- ----------- ----------- --------- --------
AMFC 6.83 4.39 74 0.08 532 2,686 NA 1.10 0.250 22.73
BFSB 8.39 8.34 105 0.08 606 3,123 0.05 1.42 0.550 38.73
CFFC 7.85 7.88 443 0.25 698 3,780 0.28 1.46 0.560 38.36
FBSI 8.38 8.06 76 0.05 494 3,128 -- 0.87 0.100 11.49
FTF 11.13 10.91 -- -- 736 2,597 0.01 1.77 0.533 30.08
HBS 9.41 9.41 15 0.01 389 2,000 -- 1.56 0.560 35.90
LOGN 7.71 7.81 26 0.03 161 1,271 0.03 0.95 0.400 42.11
NEIB 7.78 7.78 228 0.13 518 3,001 0.06 1.21 0.320 26.45
SFED 5.04 4.87 120 0.07 424 4,345 (0.01) 0.93 0.270 29.03
SOBI 3.95 3.95 -- -- 137 1,966 -- 0.66 0.300 45.45
WHGB 3.61 3.66 60 0.06 130 2,445 0.10 0.55 0.230 41.82
Maximum 11.13 10.91 443 0.25 736 4,345 0.28 1.77 0.560 45.45
Minimum 3.61 3.66 -- -- 130 1,271 (0.01) 0.55 0.100 11.49
Average 7.28 7.01 104 0.07 439 2,758 0.05 1.13 0.370 32.92
Median 7.78 7.81 74 0.06 494 2,686 0.02 1.10 0.320 35.90
Source: SNL Securities and F&C calculations.
30
FERGUSON & COMPANY
- ------------------
Exhibit II.6 -- Comparatives Operations (Continued)
Interest Interest Net Interest Gain on Real Noninterest G&A Noninterest Net Opr. Total
Income/ Expense/ Income/ Sale/ Estate Income/ Expense/ Expense/ Expenses/ Nonrecurring
Avg Assets Avg Assets Avg Assets Avg Assets Expense Avg Assets Avg Assets Avg Assets Avg Assets Expense
(%) (%) (%) (%) ($000) (%) (%) (%) (%) ($000)
Ticker LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM
- ------ ---------- ---------- ------------ ---------- ------- ----------- ---------- ----------- ---------- ------------
AMFC 7.69 4.08 3.61 0.61 (3) 0.57 2.89 2.89 2.32 --
BFSB 7.75 3.90 3.86 0.01 (6) 0.45 2.31 2.31 1.87 --
CFFC 7.79 4.07 3.72 (0.01) -- 0.40 2.16 2.16 1.76 --
FBSI 7.67 4.26 3.40 0.07 (69) 0.31 1.98 1.94 1.67 --
FTF 7.96 4.16 3.80 0.05 (13) 0.43 1.51 1.50 1.08 --
HBS 7.34 4.10 3.24 -- (980) 0.27 2.06 1.40 1.78 --
LOGN 7.62 3.80 3.81 (0.06) (1) 0.20 1.55 1.55 1.36 --
NEIB 7.87 4.33 3.53 -- -- 0.30 1.73 1.73 1.43 --
SFED 7.26 3.89 3.37 0.03 (24) 0.25 2.57 2.55 2.32 --
SOBI 7.27 4.02 3.25 -- (2) 0.17 2.40 2.39 2.23 --
WHGB 7.22 3.55 3.68 -- -- 0.13 2.47 2.47 2.34 15.00
Maximum 7.96 4.33 3.86 0.61 -- 0.57 2.89 2.89 2.34 15.00
Minimum 7.22 3.55 3.24 (0.06) (980.00) 0.13 1.51 1.40 1.08 --
Average 7.59 4.01 3.57 0.06 (99.82) 0.32 2.15 2.08 1.83 1.36
Median 7.67 4.07 3.61 -- (3.00) 0.30 2.16 2.16 1.78 --
Source: SNL Securities and F&C calculations.
31
FERGUSON & COMPANY
- ------------------
Exhibit II.6 -- Comparatives Operations (Continued)
Amortization Yield on Cost of Interest
of Tax Efficiency Int Earning Int Bearing Effective Yield
Intangibles Provision Ratio Assets Liabilities Tax Rate Spread
($000) ($000) (%) (%) (%) (%) (%)
Ticker LTM LTM LTM LTM LTM LTM LTM
- ------ ------------ --------- ---------- ----------- ----------- --------- --------
AMFC -- 675 69.04 7.85 4.94 39.75 2.91
BFSB -- 991 53.74 8.11 4.82 37.98 3.29
CFFC -- 1,112 52.33 8.18 4.79 37.23 3.39
FBSI 5.00 1,015 53.39 8.03 5.10 35.18 2.93
FTF -- 1,779 35.71 8.16 5.05 37.06 3.11
HBS 53.00 1,031 58.55 7.68 4.88 34.55 2.80
LOGN -- 728 38.75 7.89 4.88 37.14 3.01
NEIB -- 1,332 45.15 7.98 5.16 38.98 2.82
SFED -- 692 70.82 7.45 4.49 39.32 2.96
SOBI -- 345 70.09 7.55 4.78 40.97 2.77
WHGB -- 495 64.91 7.56 4.56 39.70 3.00
Maximum 53.00 1,779 70.82 8.18 5.16 40.97 3.39
Minimum -- 345 35.71 7.45 4.49 34.55 2.77
Average 5.27 927 55.68 7.86 4.86 37.99 3.00
Median -- 991 53.74 7.89 4.88 37.98 2.96
Source: SNL Securities and F&C calculations.
32
FERGUSON & COMPANY
- ------------------
Exhibit II.7 -- Comparatives Risk
NPAs + Loans Net Loan Intangible
NPAs/ 90+ Past Due/ NPAs/ Reserves/ Reserves/ Chargeoffs/ Loans/ Assets/
Assets Assets Equity Loans NPAs Avg Loans Assets Equity
(%) (%) (%) (%) (%) (%) (%) (%)
Ticker Short Name Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ Mst RctQ
- ------ ---------- -------- ------------- -------- --------- --------- ----------- -------- ----------
AMFC AMB Financial Corp. NA NA NA 0.53 NA NA 77.50 --
BFSB Bedford Bancshares Inc. -- 0.54 -- 0.60 NM -- 86.48 --
CFFC Community Financial Corp. 0.44 0.44 3.25 0.65 129.75 0.13 88.50 0.44
FBSI First Bancshares Inc. 0.04 0.42 0.25 0.37 905.26 (0.01) 85.85 --
FTF Texarkana First Financial Corp 0.07 0.17 0.49 0.76 845.11 -- 82.23 --
HBS Haywood Bancshares Inc. 0.67 0.67 4.76 0.64 71.19 -- 75.44 3.42
LOGN Logansport Financial Corp. 0.62 0.62 3.25 0.38 45.62 -- 74.18 --
NEIB Northeast Indiana Bancorp 0.17 0.17 1.20 0.67 350.00 0.06 89.38 --
SFED SFS Bancorp Inc. 0.82 0.84 6.71 0.58 54.07 0.01 77.15 --
SOBI Sobieski Bancorp Inc. 0.26 0.26 1.82 0.29 87.34 -- 78.90 --
WHGB WHG Bancshares Corp. 0.95 0.95 4.85 0.24 19.59 0.38 78.47 --
Maximum 0.95 0.95 6.71 0.76 905.26 0.38 89.38 3.42
Minimum -- 0.17 -- 0.24 19.59 (0.01) 74.18 --
Average 0.40 0.51 2.66 0.52 278.66 0.06 81.28 0.35
Median 0.35 0.49 2.54 0.58 87.34 -- 78.90 --
Source: SNL Securities and F&C calculations.
33
FERGUSON & COMPANY
- ------------------
Exhibit II.7 -- Comparatives Risk (Continued)
One Year Earn Assets/
Cum Gap/ Net Int Bearing
Assets Loans Liabilities
(%) ($000) (%)
Ticker Mst RctY Mst RctQ Mst RctQ
- ------ -------- -------- ------------
AMFC NA 77,093 116.58
BFSB 22.69 117,692 119.04
CFFC NA 160,409 113.11
FBSI NA 138,157 114.88
FTF (11.93) 147,100 118.19
HBS (5.85) 114,531 113.21
LOGN NA 63,634 122.53
NEIB NA 168,958 116.38
SFED NA 133,786 113.64
SOBI NA 68,879 112.35
WHGB NA 79,321 118.09
Maximum 22.69 168,958 122.53
Minimum (11.93) 63,634 112.35
Average 1.64 115,415 116.18
Median (5.85) 117,692 116.38
Source: SNL Securities and F&C calculations.
34
FERGUSON & COMPANY
- ------------------
Exhibit II.8 -- Comparatives Price
Current Current Price/ Current Current
Stock Market LTM Price/ Price/Tang Price/
Abbreviated Price Value Core EPS Book Value Book Value Assets
Ticker Name City State ($) ($M) (x) (%) (%) (%)
- ------ ----------- ---- ----- ------- ------- -------- ---------- ---------- ------
AMFC AMBFinancial-IN Munster IN 17.63 16.99 24.82 114.97 114.97 16.99
BFSB BedfordBcshs-VA Bedford VA 29.13 33.27 20.51 159.33 159.33 24.30
CFFC CommunityFinl-VA Staunton VA 30.25 38.71 20.72 155.05 155.77 21.13
FBSI FirstBcshs-MO Mountain Grove MO 16.75 36.97 20.18 157.42 157.42 22.67
FTF TexarkanaFirst-AR Texarkana AR 28.00 49.27 16.09 180.41 180.41 27.34
HBS HaywoodBcshs-NC Waynesville NC 22.25 27.82 14.26 128.39 132.92 18.21
LOGN LogansprtFinl-IN Logansport IN 17.50 22.07 18.23 133.38 133.38 25.62
NEIB NEIndianaBncp-IN Huntington IN 21.13 36.26 17.46 136.20 136.20 19.57
SFED SFSBancorp-NY Schenectady NY 23.75 28.70 26.39 133.95 133.95 16.45
SOBI SobieskiBancorp-IN South Bend IN 21.25 16.66 32.20 119.72 119.72 18.55
WHGB WHGBancshares-MD Lutherville MD 18.00 25.00 32.14 125.52 125.52 24.67
Maximum 30.25 49.27 32.20 180.41 180.41 27.34
Minimum 16.75 16.66 14.26 114.97 114.97 16.45
Average 22.33 30.16 22.09 140.39 140.87 21.41
Median 21.25 28.70 20.51 133.95 133.95 21.13
Source: SNL Securities and F&C calculations.
35
FERGUSON & COMPANY
- ------------------
Exhibit II.8 -- Comparatives Price (Continued)
Equity/
Current Total Equity/ Tangible Core Income/ Income/ Before NPAs/ Price/
Dividend Assets Assets Assets EPS Avg Assets Avg Equity Extra Merger Current Assets Core
Yield ($000) (%) (%) ($) (%) (%) (%) Target? Pricing (%) EPS
Ticker (%) Mst RctQ Mst RctQ Mst RctQ LTM LTM LTM LTM (Y/N) Date Mst RctQ (x)
- ------ -------- -------- -------- -------- ---- ---------- ---------- ------ ------- -------- -------- ------
AMFC 1.59 100,003 14.77 14.77 0.71 0.71 4.39 6.83 N 03/20/98 NA 27.54
BFSB 1.92 136,908 14.52 14.52 1.42 1.19 8.34 8.39 N 03/20/98 -- 22.06
CFFC 1.85 182,879 13.63 13.58 1.46 1.07 7.88 7.85 N 03/20/98 0.44 18.01
FBSI 0.60 161,527 14.40 14.40 0.83 1.12 8.06 8.38 N 03/20/98 0.04 18.21
FTF 2.00 180,259 15.15 15.15 1.74 1.71 10.91 11.13 N 03/20/98 0.07 17.07
HBS 2.70 152,796 14.18 13.77 1.56 1.37 9.41 9.41 N 03/20/98 0.67 8.43
LOGN 2.29 86,115 19.21 19.21 0.96 1.53 7.81 7.71 N 03/20/98 0.62 14.58
NEIB 1.61 190,319 14.37 14.37 1.21 1.20 7.78 7.78 N 03/20/98 0.17 16.00
SFED 1.35 174,428 12.29 12.29 0.90 0.61 4.87 5.04 N 03/20/98 0.82 25.82
SOBI 1.51 87,553 14.39 14.39 0.66 0.61 3.95 3.95 N 03/20/98 0.26 31.25
WHGB 1.78 101,331 19.65 19.65 0.56 0.77 3.66 3.61 N 03/20/98 0.95 37.50
Maximum 2.70 190,319 19.65 19.65 1.74 1.71 10.91 11.13 0.95 37.50
Minimum 0.60 86,115 12.29 12.29 0.56 0.61 3.66 3.61 -- 8.43
Average 1.74 141,283 15.14 15.10 1.09 1.08 7.01 7.28 0.40 21.50
Median 1.78 152,796 14.40 14.40 0.96 1.12 7.81 7.78 0.35 18.21
Source: SNL Securities and F&C calculations.
36
FERGUSON & COMPANY
- ------------------
Exhibit II.8 -- Comparatives Price (Continued)
Core Income/ Income/
EPS Avg Assets Avg Equity
($) (%) (%)
Ticker Mst RctQ Mst RctQ Mst RctQ
- ------ -------- ---------- ----------
AMFC 0.16 0.57 3.95
BFSB 0.33 1.10 7.72
CFFC 0.42 1.18 8.76
FBSI 0.23 1.23 8.80
FTF 0.41 1.58 10.33
HBS 0.66 2.18 15.52
LOGN 0.30 1.71 8.96
NEIB 0.33 1.28 8.66
SFED 0.23 0.56 4.63
SOBI 0.17 0.59 4.06
WHGB 0.12 0.61 3.08
Maximum 0.66 2.18 15.52
Minimum 0.12 0.56 3.08
Average 0.31 1.14 7.68
Median 0.30 1.18 8.66
Source: SNL Securities and F&C calculations.
37
EXHIBIT III
DOUGLAS SAVINGS BANK
ARLINGTON HEIGHTS, ILLINOIS
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
Number of Open Quarters 4 4 4 3
($'s in Thousands)
BALANCE SHEET:
Total Assets 91,579 103,413 106,826 111,439
% Change in Assets 8.70 12.92 3.30 4.32
Securities-Book Value 9,962 9,239 10,048 12,001
Securities-Fair Value 9,868 9,300 10,072 12,019
Total Loans & Leases 77,489 90,626 93,531 95,029
Total Deposits 82,359 89,465 94,896 98,865
Loan/Deposit Ratio 94.09 101.30 98.56 96.12
Provision for Loan Losses 14.00 32.00 8.00 --
CAPITAL:
Equity Capital 5,800 6,920 7,445 8,180
Total Qualifying Capital(Est) 6,127 6,889 7,363 7,968
Equity Capital/Average Assets 6.60 7.10 6.98 7.56
Tot Qual Cap/Rk Bsd Asts(Est) 11.18 11.54 11.29 11.71
Tier 1 Cap/Rsk Bsed Asts(Est) 10.82 11.16 10.92 11.34
T1 Cap/Avg Assets(Lev Est) 6.53 6.53 6.64 7.02
Dividends Declared/Net Income -- -- -- --
PROFITABILITY:
Net Income(Loss) 901 728 464 586
Return on Average Assets 1.02 0.75 0.44 0.72
Return on Average Equity Cap 16.64 11.45 6.46 10.00
Net Interest Margin 3.96 3.39 3.19 3.13
Net Int Income/Avg Assets 3.84 3.30 3.06 3.03
Noninterest Income/Avg Assets 0.13 0.13 0.13 0.12
Noninterest Exp/Avg Assets 2.29 2.15 2.46 1.94
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 0.02 0.15 0.17 0.06
NPA's/Equity + LLR 0.28 1.86 2.03 0.69
LLR/Nonperf & Restrcd Lns 1,152.94 172.93 153.85 434.48
Foreclosed RE/Total Assets -- -- -- --
90+ Day Del Loans/Total Loans 0.02 0.15 0.17 0.06
Loan Loss Reserves/Total Lns 0.25 0.25 0.26 0.27
Net Charge-Offs/Average Loans -- -- -- 0.02
Dom Risk R/E Lns/Tot Dom Lns 0.80 0.13 0.10 0.09
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 7.04 7.65 10.13 9.97
Int Earn Assets/Int Bear Liab 105.59 108.21 107.68 107.33
Pledged Sec/Total Sec -- 69.27 63.69 62.49
Fair Value Sec/Amort Cost Sec 96.92 105.65 105.89 107.04
1
Source: Sheshunoff Information Services, Inc.
EXHIBIT IV
AMFC
AMERICAN SAVINGS, FSB
MUNSTER, INDIANA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 65,575 69,829 85,390 101,168
% Change in Assets 0.66 6.49 22.28 18.48
Total Loans 52,091 54,932 67,562 75,433
Deposits 58,289 59,599 60,894 73,981
Broker Originated Deposits -- -- -- 694
CAPITAL:
Equity Capital 5,633 6,314 11,192 9,298
Tangible Capital 5,807 6,195 11,162 9,251
Core Capital 5,807 6,195 11,162 9,251
Risk-Based Capital 6,122 6,540 11,502 9,624
Equity Capital/Total Assets 8.59 9.04 13.11 9.19
Core Capital/Risk Based Assets 16.39 16.62 24.13 17.49
Core Capital/Adj Tang Assets 8.83 8.89 13.08 9.15
Tangible Cap/Tangible Assets 8.83 8.89 13.08 9.15
Risk-Based Cap/Risk-Wt Assets 17.28 17.55 24.86 18.20
PROFITABILITY:
Net Income(Loss) 384 375 389 555
Ret on Avg Assets Bef Ext Item 0.59 0.55 0.49 0.80
Return on Average Equity 6.97 6.28 3.77 6.71
Net Interest Income/Avg Assets 3.97 3.69 3.47 3.38
Noninterest Income/Avg Assets 0.59 0.48 0.68 0.65
Noninterest Expense/Avg Assets 3.77 3.20 3.44 2.69
Yield/Cost Spread 4.22 3.91 3.21 3.20
LIQUIDITY:
Int Earn Assets/Int Bear Liab 102.03 103.09 111.46 105.59
Brokered Deposits/Tot Deposits -- -- -- 0.94
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.75 1.26 0.89 0.81
Nonaccrual Loans/Gross Loans 0.98 0.66 0.44 0.27
Nonaccrual Lns/Ln Loss Reserve 126.68 102.50 85.92 52.06
Repos Assets/Tot Assets -- -- -- 0.12
Net Chrg-Off/Av Adj Lns (0.18) 0.13 0.01 0.02
Nonmtg 1-4 Constr&Conv Lns/TA 14.00 12.94 15.87 14.54
1
Source: Sheshunoff Information Services, Inc.
BFSB
BEDFORD FEDERAL SAVINGS BANK
BEDFORD, VIRGINIA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 105,837 116,051 130,235 139,579
% Change in Assets 9.34 9.65 12.22 7.17
Total Loans 90,309 98,763 112,047 116,770
Deposits 85,123 92,532 96,304 104,328
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 13,779 15,047 16,131 17,313
Tangible Capital 13,779 15,025 16,163 17,301
Core Capital 13,779 15,025 16,163 17,301
Risk-Based Capital 14,409 14,798 16,776 17,887
Equity Capital/Total Assets 13.02 12.97 12.39 12.40
Core Capital/Risk Based Assets 24.32 23.93 22.23 21.99
Core Capital/Adj Tang Assets 13.04 12.97 12.41 12.40
Tangible Cap/Tangible Assets 13.04 12.97 12.41 12.40
Risk-Based Cap/Risk-Wt Assets 25.43 23.57 23.07 22.73
PROFITABILITY:
Net Income(Loss) 1,590 1,180 1,137 1,136
Ret on Avg Assets Bef Ext Item 1.25 1.06 0.93 1.13
Return on Average Equity 12.63 8.19 7.28 9.06
Net Interest Income/Avg Assets 3.85 3.83 3.88 3.82
Noninterest Income/Avg Assets 0.31 0.35 0.40 0.35
Noninterest Expense/Avg Assets 2.29 2.44 2.78 2.28
Yield/Cost Spread 3.79 3.61 3.69 3.67
LIQUIDITY:
Int Earn Assets/Int Bear Liab 110.72 110.20 109.21 107.01
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.29 1.25 1.07 0.47
Nonaccrual Loans/Gross Loans -- -- -- --
Nonaccrual Lns/Ln Loss Reserve -- -- -- --
Repos Assets/Tot Assets -- -- -- 0.15
Net Chrg-Off/Av Adj Lns 0.01 0.01 0.01 0.08
Nonmtg 1-4 Constr&Conv Lns/TA 7.63 7.93 7.98 10.81
2
Source: Sheshunoff Information Services, Inc.
CFFC
COMMUNITY BANK
STAUNTON, VIRGINIA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 143,067 157,462 167,327 183,878
% Change in Assets 5 10 6 10
Total Loans 131,113 140,620 149,228 161,807
Deposits 108,935 112,407 116,987 130,552
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 15,630 18,686 20,734 22,507
Tangible Capital 15,489 17,829 19,266 20,638
Core Capital 15,489 17,829 19,266 20,638
Risk-Based Capital 16,197 18,566 20,110 21,633
Equity Capital/Total Assets 11 12 12 12
Core Capital/Risk Based Assets 18 18 17 16
Core Capital/Adj Tang Assets 11 11 12 11
Tangible Cap/Tangible Assets 11 11 12 11
Risk-Based Cap/Risk-Wt Assets 18 19 18 17
PROFITABILITY:
Net Income(Loss) 1,667 2,049 1,707 1,371
Ret on Avg Assets Bef Ext Item 1 1 1 1
Return on Average Equity 11 12 9 8
Net Interest Income/Avg Assets 3 4 4 4
Noninterest Income/Avg Assets 0 0 0 0
Noninterest Expense/Avg Assets 2 2 2 2
Yield/Cost Spread 3 4 4 4
LIQUIDITY:
Int Earn Assets/Int Bear Liab 107 109 109 108
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0 0 0 1
Nonaccrual Loans/Gross Loans 0 0 0 1
Nonaccrual Lns/Ln Loss Reserve 4 25 17 84
Repos Assets/Tot Assets -- -- -- 0
Net Chrg-Off/Av Adj Lns 0 0 0 0
Nonmtg 1-4 Constr&Conv Lns/TA 29 27 25 24
3
Source: Sheshunoff Information Services, Inc.
FSBI
FIRST HOME SAVINGS BANK
MOUNTAIN GROVE, MISSOURI
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 123,435 136,507 155,249 161,028
% Change in Assets 11.10 10.59 13.73 3.72
Total Loans 93,856 112,485 126,133 137,363
Deposits 104,571 102,900 114,305 121,608
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 16,980 18,468 18,375 18,565
Tangible Capital 16,413 17,982 17,901 17,999
Core Capital 16,413 17,982 17,901 17,999
Risk-Based Capital 16,062 18,120 18,064 18,180
Equity Capital/Total Assets 13.76 13.53 11.84 11.53
Core Capital/Risk Based Assets 22.08 20.54 17.97 16.82
Core Capital/Adj Tang Assets 13.37 13.21 11.56 11.21
Tangible Cap/Tangible Assets 13.37 13.21 11.56 11.21
Risk-Based Cap/Risk-Wt Assets 21.61 20.70 18.13 16.98
PROFITABILITY:
Net Income(Loss) 961 820 1,010 1,316
Ret on Avg Assets Bef Ext Item 0.82 0.63 0.70 1.10
Return on Average Equity 5.55 4.63 5.33 9.25
Net Interest Income/Avg Assets 2.95 2.88 3.28 3.27
Noninterest Income/Avg Assets 0.12 0.16 0.31 0.41
Noninterest Expense/Avg Assets 1.89 2.02 2.41 1.87
Yield/Cost Spread 2.67 2.55 2.98 3.11
LIQUIDITY:
Int Earn Assets/Int Bear Liab 111.24 110.61 108.26 107.03
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.47 0.40 0.60 0.80
Nonaccrual Loans/Gross Loans 0.06 0.04 0.04 0.04
Nonaccrual Lns/Ln Loss Reserve 11.42 10.49 12.56 26.39
Repos Assets/Tot Assets -- -- -- 0.10
Net Chrg-Off/Av Adj Lns 0.04 0.01 0.12 --
Nonmtg 1-4 Constr&Conv Lns/TA 8.48 9.61 9.84 10.99
4
Source: Sheshunoff Information Services, Inc.
FTF
FIRST FEDERAL SAVINGS & LOAN ASSOCIATION
TEXARKANA, ARKANSAS
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 142,343 153,496 163,365 178,600
% Change in Assets 4 8 6 9
Total Loans 120,755 125,360 136,854 148,344
Deposits 127,179 126,042 135,268 143,249
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 13,329 25,354 26,305 26,878
Tangible Capital 13,329 25,250 26,259 26,797
Core Capital 13,329 25,250 26,259 26,797
Risk-Based Capital 13,879 26,029 27,033 27,553
Equity Capital/Total Assets 9.36 16.52 16.10 15.05
Core Capital/Risk Based Assets 16.15 28.70 26.91 24.67
Core Capital/Adj Tang Assets 9.36 16.46 16.08 15.01
Tangible Cap/Tangible Assets 9.36 16.46 16.08 15.01
Risk-Based Cap/Risk-Wt Assets 16.81 29.58 27.71 25.36
PROFITABILITY:
Net Income(Loss) 1,950 2,283 2,395 2,461
Ret on Avg Assets Bef Ext Item 1.40 1.54 1.51 1.93
Return on Average Equity 15.79 11.80 9.06 12.29
Net Interest Income/Avg Assets 3.18 3.58 3.72 3.80
Noninterest Income/Avg Assets 0.66 0.55 0.65 0.62
Noninterest Expense/Avg Assets 1.37 1.57 2.04 1.33
Yield/Cost Spread 3.01 3.15 3.11 3.27
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.28 117.66 116.56 115.91
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 1.20 1.01 0.27 0.36
Nonaccrual Loans/Gross Loans 0.04 0.03 0.05 --
Nonaccrual Lns/Ln Loss Reserve 5.04 3.66 5.94 --
Repos Assets/Tot Assets -- -- -- 0.07
Net Chrg-Off/Av Adj Lns 0.12 -- 0.00 0.02
Nonmtg 1-4 Constr&Conv Lns/TA 14.33 13.85 12.84 14.24
5
Source: Sheshunoff Information Services, Inc.
HBS
HAYWOOD SAVINGS BANK
WAYNESVILLE, NORTH CAROLINA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
Number of Open Quarters 4 4 4 3
($'s in Thousands)
BALANCE SHEET:
Total Assets 132,672 132,328 131,232 152,868
% Change in Assets (5.59) (0.26) (0.83) 16.49
Securities-Book Value 25,510 20,031 13,390 27,381
Securities-Fair Value 23,886 21,710 13,077 27,607
Total Loans & Leases 100,567 104,726 110,070 115,271
Total Deposits 110,511 109,074 107,671 118,377
Loan/Deposit Ratio 91.00 96.01 102.23 97.38
Provision for Loan Losses 60.00 20.00 15.00 15.00
CAPITAL:
Equity Capital 20,371 21,351 20,526 21,687
Total Qualifying Capital(Est) 20,170 21,222 20,465 21,795
Equity Capital/Average Assets 14.91 16.11 15.54 14.69
Tot Qual Cap/Rk Bsd Asts(Est) 28.88 29.94 27.47 27.54
Tier 1 Cap/Rsk Bsed Asts(Est) 27.90 28.95 26.50 26.62
T1 Cap/Avg Assets(Lev Est) 14.62 15.53 15.15 13.88
Dividends Declared/Net Income 34.09 45.60 59.32 33.14
PROFITABILITY:
Net Income(Loss) 1,675 1,353 1,094 1,584
Return on Average Assets 1.23 1.02 0.83 1.43
Return on Average Equity Cap 8.38 6.49 5.27 10.12
Net Interest Margin 4.03 3.75 3.80 3.38
Net Int Income/Avg Assets 3.88 3.62 3.63 3.11
Noninterest Income/Avg Assets 0.23 0.29 0.39 1.08
Noninterest Exp/Avg Assets 2.10 2.23 2.75 2.00
ASSET QUALITY:
NPL+Frcl RE/Lns+Frcl RE 3.28 3.01 2.36 0.89
NPA's/Equity + LLR 15.96 14.53 12.43 4.59
LLR/Nonperf & Restrcd Lns 42.17 51.27 84.39 90.28
Foreclosed RE/Total Assets 1.31 1.38 1.36 0.14
90+ Day Del Loans/Total Loans 1.61 1.31 -- --
Loan Loss Reserves/Total Lns 0.68 0.67 0.65 0.64
Net Charge-Offs/Average Loans -- -- -- --
Dom Risk R/E Lns/Tot Dom Lns 13.42 12.65 16.90 18.61
LIQUIDITY:
Brokered Dep/Total Dom Deps -- -- -- --
$100M+ Time Dep/Total Dom Dep 10.47 9.86 10.34 11.94
Int Earn Assets/Int Bear Liab 114.57 115.66 113.88 113.03
Pledged Sec/Total Sec -- 1.50 2.24 2.19
Fair Value Sec/Amort Cost Sec 93.63 108.38 97.66 100.19
6
Source: Sheshunoff Information Services, Inc.
LOGN
LOGANSPORT SAVINGS BANK, FSB
LOGANSPORT, INDIANA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 59,452 70,750 77,574 85,496
% Change in Assets 5.73 19.00 9.65 10.21
Total Loans 43,691 49,058 57,068 61,271
Deposits 51,202 52,502 57,396 61,741
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 6,935 16,672 16,861 16,005
Tangible Capital 7,131 16,671 17,018 16,009
Core Capital 7,131 16,671 17,018 16,009
Risk-Based Capital 7,337 16,894 17,254 16,245
Equity Capital/Total Assets 11.66 23.56 21.74 18.72
Core Capital/Risk Based Assets 21.31 42.94 40.57 34.65
Core Capital/Adj Tang Assets 11.93 23.56 21.89 18.72
Tangible Cap/Tangible Assets 11.93 23.56 21.89 18.72
Risk-Based Cap/Risk-Wt Assets 21.93 43.51 41.13 35.17
PROFITABILITY:
Net Income(Loss) 734 851 869 899
Ret on Avg Assets Bef Ext Item 1.27 1.31 1.17 1.48
Return on Average Equity 11.01 7.21 5.24 7.61
Net Interest Income/Avg Assets 3.27 3.19 3.53 3.57
Noninterest Income/Avg Assets 0.30 0.48 0.33 0.32
Noninterest Expense/Avg Assets 1.66 1.58 2.03 1.51
Yield/Cost Spread 3.09 2.69 2.77 2.97
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.43 125.00 124.78 120.08
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.64 0.63 0.71 0.69
Nonaccrual Loans/Gross Loans -- -- -- 0.52
Nonaccrual Lns/Ln Loss Reserve -- -- -- 134.75
Repos Assets/Tot Assets -- -- -- 0.12
Net Chrg-Off/Av Adj Lns -- 0.01 (0.00) 0.04
Nonmtg 1-4 Constr&Conv Lns/TA 3.71 5.36 7.22 5.45
7
Source: Sheshunoff Information Services, Inc.
NEIB
FIRST FEDERAL SAVINGS BANK
HUNTINGTON, INDIANA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 115,185 137,649 169,531 190,443
% Change in Assets 19.73 19.50 23.16 12.34
Total Loans 104,674 122,835 147,140 169,198
Deposits 68,533 68,496 85,717 97,060
Broker Originated Deposits -- 2,302 2,126 100
CAPITAL:
Equity Capital 10,328 20,461 21,185 23,053
Tangible Capital 10,328 20,459 21,169 23,031
Core Capital 10,328 20,459 21,169 23,031
Risk-Based Capital 10,932 21,145 21,999 24,032
Equity Capital/Total Assets 8.97 14.86 12.50 12.10
Core Capital/Risk Based Assets 14.78 24.25 20.95 19.20
Core Capital/Adj Tang Assets 8.97 14.86 12.49 12.09
Tangible Cap/Tangible Assets 8.97 14.86 12.49 12.09
Risk-Based Cap/Risk-Wt Assets 15.64 25.06 21.77 20.03
PROFITABILITY:
Net Income(Loss) 1,427 1,190 1,346 1,548
Ret on Avg Assets Bef Ext Item 1.35 0.94 0.88 1.17
Return on Average Equity 14.84 7.73 6.60 9.36
Net Interest Income/Avg Assets 3.75 3.07 3.20 3.25
Noninterest Income/Avg Assets 0.60 0.40 0.39 0.46
Noninterest Expense/Avg Assets 1.86 1.81 2.00 1.63
Yield/Cost Spread 3.61 2.72 2.86 2.95
LIQUIDITY:
Int Earn Assets/Int Bear Liab 106.71 113.87 109.95 109.53
Brokered Deposits/Tot Deposits -- 3.36 2.48 0.10
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.32 0.23 0.48 0.19
Nonaccrual Loans/Gross Loans 0.31 0.23 0.46 0.19
Nonaccrual Lns/Ln Loss Reserve 48.42 32.24 68.58 32.47
Repos Assets/Tot Assets -- -- -- 0.00
Net Chrg-Off/Av Adj Lns 0.03 0.06 0.06 0.02
Nonmtg 1-4 Constr&Conv Lns/TA 11.43 11.44 10.39 10.37
8
Source: Sheshunoff Information Services, Inc.
SFED
SCHENECTADY FEDERAL SAVINGS
SCHENECTADY, NEW YORK
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 150,896 166,557 164,903 174,151
% Change in Assets 3.12 10.38 (0.99) 5.61
Total Loans 94,299 101,585 119,167 129,639
Deposits 138,132 139,555 140,583 149,848
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 10,046 17,030 17,808 18,537
Tangible Capital 10,046 16,942 17,762 18,481
Core Capital 10,046 16,942 17,762 18,481
Risk-Based Capital 10,907 17,514 18,404 19,233
Equity Capital/Total Assets 6.66 10.22 10.80 10.64
Core Capital/Risk Based Assets 13.25 20.79 20.19 19.95
Core Capital/Adj Tang Assets 6.66 10.18 10.77 10.62
Tangible Cap/Tangible Assets 6.66 10.18 10.77 10.62
Risk-Based Cap/Risk-Wt Assets 14.38 21.49 20.92 20.76
PROFITABILITY:
Net Income(Loss) 511 724 663 718
Ret on Avg Assets Bef Ext Item 0.34 0.46 0.40 0.56
Return on Average Equity 5.19 5.35 3.82 5.28
Net Interest Income/Avg Assets 3.17 3.13 3.16 3.19
Noninterest Income/Avg Assets 0.06 0.22 0.26 0.27
Noninterest Expense/Avg Assets 2.66 2.49 3.08 2.47
Yield/Cost Spread 3.11 2.94 2.89 2.95
LIQUIDITY:
Int Earn Assets/Int Bear Liab 105.77 110.21 110.05 109.31
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 2.67 1.94 1.64 1.66
Nonaccrual Loans/Gross Loans 1.34 0.79 0.70 0.78
Nonaccrual Lns/Ln Loss Reserve 147.39 139.09 130.06 133.64
Repos Assets/Tot Assets -- -- -- 0.06
Net Chrg-Off/Av Adj Lns 0.07 0.67 0.05 (0.02)
Nonmtg 1-4 Constr&Conv Lns/TA 5.05 3.58 2.69 2.94
9
Source: Sheshunoff Information Services, Inc.
SOBI
SOBIESKI FEDERAL SAVINGS & LOAN ASSOCIATION
SOUTH BEND, INDIANA
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 70,694 72,595 75,773 81,969
% Change in Assets (4.11) 2.69 4.38 8.18
Total Loans 49,594 45,893 52,234 60,427
Deposits 64,309 61,399 59,714 58,645
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 5,917 10,002 9,321 9,139
Tangible Capital 5,917 9,964 9,331 9,136
Core Capital 5,917 9,964 9,331 9,136
Risk-Based Capital 6,117 10,164 9,531 9,336
Equity Capital/Total Assets 8.37 13.78 12.30 11.15
Core Capital/Risk Based Assets 19.89 35.15 29.37 23.88
Core Capital/Adj Tang Assets 8.37 13.73 12.31 11.15
Tangible Cap/Tangible Assets 8.37 13.73 12.31 11.15
Risk-Based Cap/Risk-Wt Assets 20.56 35.86 30.00 24.40
PROFITABILITY:
Net Income(Loss) 686 363 74 326
Ret on Avg Assets Bef Ext Item 0.95 0.57 0.10 0.56
Return on Average Equity 12.25 5.09 0.76 4.82
Net Interest Income/Avg Assets 3.53 3.02 2.92 2.99
Noninterest Income/Avg Assets 0.22 0.23 0.37 0.26
Noninterest Expense/Avg Assets 2.20 2.40 3.08 2.25
Yield/Cost Spread 3.45 2.84 2.69 2.83
LIQUIDITY:
Int Earn Assets/Int Bear Liab 105.04 109.97 107.58 107.37
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.30 0.17 0.38 0.17
Nonaccrual Loans/Gross Loans -- -- -- 0.18
Nonaccrual Lns/Ln Loss Reserve -- -- -- 53.00
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns -- -- -- --
Nonmtg 1-4 Constr&Conv Lns/TA 0.50 3.57 4.53 1.92
10
Source: Sheshunoff Information Services, Inc.
WHGB
HERITAGE SAVINGS BANK, FSB
LUTHERVILLE, MARYLAND
FINANCIAL HIGHLIGHTS
1994 1995 1996 YTD 9/97
---- ---- ---- --------
(All $ Amounts in Thousands)
Num of Quarters Open for Period 4 4 4 3
BALANCE SHEET:
Total Assets 85,167 85,026 95,773 98,218
% Change in Assets 2.59 (0.17) 12.64 2.55
Total Loans 76,522 74,809 81,511 81,740
Deposits 75,031 74,201 71,290 74,167
Broker Originated Deposits -- -- -- --
CAPITAL:
Equity Capital 7,900 8,578 14,626 15,333
Tangible Capital 7,900 8,578 14,624 15,331
Core Capital 7,900 8,578 14,624 15,331
Risk-Based Capital 8,000 8,728 14,829 15,581
Equity Capital/Total Assets 9.28 10.09 15.27 15.61
Core Capital/Risk Based Assets 17.10 19.43 29.46 32.66
Core Capital/Adj Tang Assets 9.28 10.09 15.27 16.09
Tangible Cap/Tangible Assets 9.28 10.09 15.27 16.09
Risk-Based Cap/Risk-Wt Assets 17.32 19.77 29.87 33.19
PROFITABILITY:
Net Income(Loss) 537 595 308 422
Ret on Avg Assets Bef Ext Item 0.64 0.70 0.34 0.57
Return on Average Equity 7.03 7.22 2.14 3.76
Net Interest Income/Avg Assets 3.26 3.22 3.36 3.43
Noninterest Income/Avg Assets 0.15 0.25 0.24 0.21
Noninterest Expense/Avg Assets 2.28 2.27 2.95 2.55
Yield/Cost Spread 3.12 3.02 2.85 2.93
LIQUIDITY:
Int Earn Assets/Int Bear Liab 108.34 109.13 116.56 115.81
Brokered Deposits/Tot Deposits -- -- -- --
ASSET QUALITY:
Nonperf Lns+REO/Total Lns+REO 0.74 0.21 0.94 1.49
Nonaccrual Loans/Gross Loans 0.72 0.10 0.46 1.03
Nonaccrual Lns/Ln Loss Reserve 475.42 48.37 176.61 334.80
Repos Assets/Tot Assets -- -- -- --
Net Chrg-Off/Av Adj Lns 0.03 (0.01) 0.01 --
Nonmtg 1-4 Constr&Conv Lns/TA 4.95 4.19 5.10 5.07
11
Source: Sheshunoff Information Services, Inc.
EXHIBIT V
FERGUSON & COMPANY
- ------------------
Exhibit V -- Pro Forma Assumptions
1. Net proceeds from the conversion were invested at the beginning of the
period at 5.55%, which was the approximate rate on the one-year treasury
bill on December 31, 1997. This rate was selected because it is considered
more representative of the rate the Bank is likely to earn.
2. Ben Franklin's ESOP will acquire 8% of the conversion stock with loan
proceeds obtained from the Holding Company; therefore, there will be no
interest expense. We assumed that the ESOP expense is 10% annually of the
initial ESOP expense.
3. Franklin's RP will acquire 4% of the stock through open market purchases at
$10 per share and the expense is recognized ratably over five years as the
shares vest.
4. All pro forma income and expense items are adjusted for income taxes at a
combined state and federal rate of 40%.
5. In calculating the pro forma adjustments to net worth, the ESOP and RP are
deducted in accordance with generally accepted accounting principles.
6. Earnings per share calculations have ignored AICPA OP 93-6. Calculating
earnings per share under SOP 93-6 and assuming 10% of the ESOP shares are
committed to be released and allocated to individual accounts at the
beginning of the period would yield earnings per share of $.78, $0.70,
$0.63 and $0.58 and a price to earnings ratio of 12.79, 14.36, 15.80 and
17.29, at the minimum, midpoint, maximum and super maximum, respectively.
1
Exhibit V
Pro Forma Effect of Conversion Proceeds
At the Minimum of the Conversion Valuation Range
31-Dec-97
Ben Franklin Bank of Illinois, Arlington Heights, Illinois
- ----------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Value (Minimum) $11,900,000
Less: Estimated Expenses (550,000)
-----------
Net Conversion Proceeds $11,350,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $11,350,000
Less: ESOP Contributions (952,000)
MRP Contributions (476,000)
-----------
Net Conversion Proceeds after ESOP & MRP $ 9,922,000
Estimated Incremental Rate of Return(1) 3.33%
-----------
Estimated Additional Income $ 330,403
Less: ESOP Expense (57,120)
MRP Expense (57,120)
-----------
$ 216,163
===========
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
------ -----------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
31-Dec-97 $ 647,000 $ 216,163 $ 863,163
b. Pro Forma Net Worth
31-Dec-97 $ 7,800,000 $9,922,000 $ 17,722,000
c. Pro Forma Net Assets
31-Dec-97 $122,591,000 $9,922,000 $132,513,000
(1) Investment rate of 5.55%, subject to an effective tax rate of 40%.
2
Exhibit V
Pro Forma Effect of Conversion Proceeds
At the Midpoint of the Conversion Valuation Range
31-Dec-97
Ben Franklin Bank of Illinois, Arlington Heights, Illinois
- ----------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation (Midpoint) $14,000,000
Less: Estimated Expenses (550,000)
-----------
Net Conversion Proceeds $13,450,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $13,450,000
Less: ESOP Contributions (1,120,000)
MRP Contributions (560,000)
-----------
Net Conversion Proceeds after ESOP & MRP $11,770,000
Estimated Incremental Rate of Return(1) 3.33%
-----------
Estimated Additional Income $ 391,941
Less: ESOP Expense (67,200)
MRP Expense (67,200)
-----------
$ 257,541
===========
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
------ -----------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
31-Dec-97 $ 647,000 $ 257,541 $ 904,541
b. Pro Forma Net Worth
31-Dec-97 $ 7,800,000 $11,770,000 $ 19,570,000
c. Pro Forma Net Assets
31-Dec-97 $122,591,000 $11,770,000 $134,361,000
(1) Investment rate of 5.55%, subject to an effective tax rate of 40%.
3
Exhibit V
Pro Forma Effect of Conversion Proceeds
At the Maximum of the Conversion Valuation Range
31-Dec-97
Ben Franklin Bank of Illinois, Arlington Heights, Illinois
- ----------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation (Maximum) $16,100,000
Less: Estimated Expenses (550,000)
-----------
Net Conversion Proceeds $15,550,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $15,550,000
Less: ESOP Contributions (1,288,000)
MRP Contributions (644,000)
-----------
Net Conversion Proceeds after ESOP & MRP $13,618,000
Estimated Incremental Rate of Return(1) 3.33%
-----------
Estimated Additional Income $ 453,479
Less: ESOP Expense (77,280)
MRP Expense (77,280)
-----------
$ 298,919
===========
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
------ -----------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
31-Dec-97 $ 647,000 $ 298,919 $ 945,919
b. Pro Forma Net Worth
31-Dec-97 $ 7,800,000 $13,618,000 $ 21,418,000
c. Pro Forma Net Assets
31-Dec-97 $122,591,000 $13,618,000 $136,209,000
(1) Investment rate of 5.55%, subject to an effective tax rate of 40%.
4
Exhibit V
Pro Forma Effect of Conversion Proceeds
At the SuperMax of the Conversion Valuation Range
31-Dec-97
Ben Franklin Bank of Illinois, Arlington Heights, Illinois
- ----------------------------------------------------------
1. Conversion Proceeds
Pro Forma Market Valuation (Supermax) $18,515,000
Less: Estimated Expenses $ (550,000)
-----------
Net Conversion Proceeds $17,965,000
2. Estimated Additional Income From Conversion Proceeds
Net Conversion Proceeds $17,965,000
Less: ESOP Contributions $(1,481,200)
MRP Contributions $ (740,600)
-----------
Net Conversion Proceeds after ESOP & MRP $15,743,200
Estimated Incremental Rate of Return(1) 3.33%
-----------
Estimated Additional Income $ 524,249
Less: ESOP Expense $ (88,872)
MRP Expense $ (88,872)
-----------
$ 346,505
===========
3. Pro Forma Calculations
Before Conversion After
Period Conversion Results Conversion
------ -----------------------------------------------
a. Pro Forma Earnings
Twelve Months Ended
31-Dec-97 $ 647,000 $ 346,505 $ 993,505
b. Pro Forma Net Worth
31-Dec-97 $ 7,800,000 $15,743,200 $ 23,543,200
c. Pro Forma Net Assets
31-Dec-97 $122,591,000 $15,743,200 $138,334,200
(1) Investment rate of 5.55%, subject to an effective tax rate of 40%.
5
Exhibit V
Pro Forma Analysis Sheet
Name of Association: Ben Franklin Bank of Illinois, Arlington Heights, Illinois
Date of Letter to Assn.: 31-Mar-98
Date of Market Prices: 31-Dec-97
Midwest
--------------
State Publicly All Publicly
Comparatives Held Thrifts Held Thrifts
-------------- -------------- --------------
Symbols Value Mean Median Mean Median Mean Median
--------------- ---- ------ ---- ------ ---- ------
Price-Earnings Ratio P/E
- --------------------
Last Twelve Months N/A
At Minimum of Range 13.79 21.91 20.80
---------------
At Midpoint of Range 15.48 22.09 20.51 25.50 18.57 21.71 20.62
At Maximum of Range 17.02
At SuperMax of Range 18.64
Price-Book Ratio P/B
- ----------------
Last Twelve Months N/A
At Minimum of Range 67.15% 166.78 147.77
---------------
At Midpoint of Range 71.54% 140.39 133.95 146.71 137.21 175.75 161.07
At Maximum of Range 75.15%
At SuperMax of Range 78.64%
Price-Asset Ratio P/A
- -----------------
Last Twelve Months N/A
At Minimum of Range 8.98% 20.48 19.57
---------------
At Midpoint of Range 10.42% 21.41 21.13 21.42 22.04 19.74 18.24
At Maximum of Range 11.82%
At SuperMax of Range 13.38%
Twelve Mo. Earnings Base Y $ 647,000
Period Ended 31-Dec-97
Book Value B $ 7,800,000
As of 31-Dec-97
Total Assets A $122,591,000
As of 31-Dec-97
Return on Money (1) R 3.33%
Conversion Expense X $ 550,000
Underwriting Commission C 0.00%
Percentage Underwritten S 0.00%
Estimate Dividend
Dollar Amount DA $ --
Yield DY
ESOP Contributions P $ 1,120,000
MRP Contributions I $ 560,000
ESOP Annual Expense E $ 67,200
MRP Annual Contributions M $ 67,200
Cost of ESOP Borrowings F 0.00%
(1) Investment rate of 5.55%, subject to an effective tax rate of 40%.
6
Exhibit V
Pro Forma Analysis Sheet
Calculation of Estimated Value (V) at Midpoint Value
1. V= P/A(A-X-P-I) $14,000,000
------------------------
1-P/A(1-(CxS))
2. V= P/B(B-X-P-I) $14,000,000
------------------------
1-P/B(1-(CxX))
3. V= P/E(Y-R(X+P+I)-(E+M+ST)) $14,000,000
------------------------
1-P/E(R(1-(CxX))
Value
Estimated Value Per Share Total Shares Date
- --------------- --------- ------------ ---------
$14,000,000 $10.00 1,400,000 31-Dec-97
Range of Value
$14.0 million x 1.15 = $16.1 million or 1,610,000 shares at $10.00 per share.
$14.0 million x .085 = $11.9 million or 1,190,000 shares at $10.00 per share.
Calculation of Estimated Value (V) Supermax
1. V= P/A(A-X-P-I) $18,515,000
------------------------
1-P/A(1-(CxS))
2. V= P/B(B-X-P-I) $18,515,000
------------------------
1-P/B(1-(CxX))
3. V= P/E(Y-R(X+P+I)-(E+M)) $18,515,000
------------------------
1-P/E(R(1-(CxX))
Value
Final Value Per Share Total Shares Date
- --------------- --------- ------------ ---------
$18,515,000 $10.00 1,851,500 31-Dec-97
7
EXHIBIT VI
FERGUSON & COMPANY
- ------------------
Exhibit VI -- Comparative Group Selection
To search for a comparative group for Douglas, we selected all thrifts from the
entire U.S. with assets between $75 million and $200 million with sufficient
trading volume to produce meaningful market data. All of these thrifts are
listed on either AMEX, NYSE, or Nasdaq.
We found 96 thrifts in the asset size described above. We eliminated 84 and
retained a group of 12. Normally, we consider 10 to 12 to be the desired sample
size.
We eliminated thrifts for the following reasons: 1) Mutual holding company; 2)
No PE for the last year or PE ratio for the last year greater than 35; 3)
Tangible equity less than 12% of assets or greater than 24% of assets; 4)
Non-performing assets greater than 1.0% of assets; 5) Loans less than 70% of
assets; and 6) Loans serviced greater than 20% of assets.
After eliminating thrifts as discussed above, we had 13 left. We then eliminated
FFBS when it was transferred to pink sheets, reducing our group to 12. Between
selection date and appriasal date 1 was acquired leaving 11.
The group of 96 from which the comparative group was selected is listed on
Exhibit VI.1 and the selected comparative group is listed on Exhibit VI.2. On
Exhibit VI.1, we have blocked the cells that indicate which ones were not
selected and why. Set forth below is a legend for the column summarizing reasons
individual thrifts were not selected.
A Mutual holding company.
B No core EPS for last twelve months or PR ratio over 35.
C Equity either less than 12% of assets or greater than 24% of assets.
D Non-performing assets greater than 1.0% of total assets.
E Loans less than 70% of assets.
F Loans serviced greater than 20% of assets.
G Transferred to pink sheets.
1
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection
A B
Deposit Current Current Price/
Insurance Stock Market LTM
Agency Price Value Core EPS
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M) (x)
- ------ ---------- ---- ----- ------ ---------- -------- -------- ------- ------- --------
- -------
AABC Access Anytime Bancorp Inc. Clovis NM SW SAIF NASDAQ 08/08/86 10.750 12.83 9.6
- ------- -----
AFBC Advance Financial Bancorp Wellsburg WV SE SAIF NASDAQ 01/02/97 17.750 19.25 NA
- ------- -----
AFED AFSALA Bancorp Inc. Amsterdam NY MA SAIF NASDAQ 10/01/96 18.750 26.03 NA
- ------- -----
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 16.500 15.90 23.6
- -------
ASBP ASB Financial Corp. Portsmouth OH MW SAIF NASDAQ 05/11/95 13.500 22.53 21.1
- -------
BDJI First Federal Bancorp. Bemidji MN MW SAIF NASDAQ 04/04/95 28.000 18.83 23.7
- -------
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 28.250 32.27 19.4
- ------- -----
BWFC Bank West Financial Corp. Grand Rapids MI MW SAIF NASDAQ 03/30/95 16.000 41.96 45.7
- ------- -----
BYFC Broadway Financial Corp. Los Angeles CA WE SAIF NASDAQ 01/09/96 13.250 11.01 30.8
- -------
CBES CBES Bancorp Inc. Excelsior Springs MO MW SAIF NASDAQ 09/30/96 21.875 22.42 18.9
- ------- -----
CCFH CCF Holding Company Jonesboro GA SE SAIF NASDAQ 07/12/95 19.750 16.20 NM
- ------- -----
CENB Century Bancorp Inc. Thomasville NC SE SAIF NASDAQ 12/23/96 83.000 33.81 NA
- ------- -----
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 26.500 33.84 17.7
- ------- -----
CFNC Carolina Fincorp Inc. Rockingham NC SE SAIF NASDAQ 11/25/96 17.625 32.63 NA
- ------- -----
CIBI Community Investors Bancorp Bucyrus OH MW SAIF NASDAQ 02/07/95 15.750 14.21 15.0
- -------
CLAS Classic Bancshares Inc. Ashland KY MW SAIF NASDAQ 12/29/95 16.250 21.12 23.9
- ------- -----
CNSB CNS Bancorp Inc. Jefferson City MO MW SAIF NASDAQ 06/12/96 21.500 35.54 41.4
- ------- -----
DCBI Delphos Citizens Bancorp Inc. Delphos OH MW SAIF NASDAQ 11/21/96 17.250 33.80 NA
- ------- -----
EFBC Empire Federal Bancorp Inc. Livingston MT WE SAIF NASDAQ 01/27/97 16.500 42.77 NA
- ------- -----
EGLB Eagle BancGroup Inc. Bloomington IL MW SAIF NASDAQ 07/01/96 19.250 22.91 56.6
- ------- -----
ESX Essex Bancorp Inc. Norfolk VA SE SAIF AMSE 07/18/90 4.500 4.76 NM
- ------- -----
ETFS East Texas Financial Services Tyler TX SW SAIF NASDAQ 01/10/95 20.625 21.17 28.3
- ------- -----
FBNW FirstBank Corp. Lewiston ID WE SAIF NASDAQ 07/02/97 17.750 35.21 NA
- ------- -----
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 26.000 28.43 16.9
- ------- -----
FCB Falmouth Bancorp Inc. Falmouth MA NE BIF AMSE 03/28/96 20.000 29.10 40.0
- ------- -----
FCME First Coastal Corp. Westbrook ME NE BIF NASDAQ NA 15.000 20.39 3.5
- -------
FFBI First Financial Bancorp Inc. Belvidere IL MW SAIF NASDAQ 10/04/93 21.000 8.72 23.1
- -------
FFBS FFBS BanCorp Inc. Columbus MS SE SAIF NASDAQ 07/01/93 22.250 34.98 18.5
- -------
FFDB FirstFed Bancorp Inc. Bessemer AL SE SAIF NASDAQ 11/19/91 21.281 24.49 14.9
- -------
FFDF FFD Financial Corp. Dover OH MW SAIF NASDAQ 04/03/96 18.625 26.91 30.0
- -------
FFSL First Independence Corp. Independence KS MW SAIF NASDAQ 10/08/93 14.875 14.55 21.9
- -------
FFWC FFW Corp. Wabash IN MW SAIF NASDAQ 04/05/93 41.750 29.98 17.3
- -------
FFWD Wood Bancorp Inc. Bowling Green OH MW SAIF NASDAQ 08/31/93 18.500 39.22 19.9
- -------
Source: SNL & F&C calculations
2
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
A B
Deposit Current Current Price/
Insurance Stock Market LTM
Agency Price Value Core EPS
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M) (x)
- ------ ---------- ---- ----- ------ ---------- -------- -------- ------- ------- --------
- -------
FGHC First Georgia Holding Inc. Brunswick GA SE SAIF NASDAQ 02/11/87 8.250 25.18 22.3
- ------- -----
FKKYD Frankfort First Bancorp Inc. Frankfort KY MW SAIF NASDAQ 07/10/95 18.625 30.54 35.8
- ------- -----
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 25.750 46.02 15.8
- ------- -----
FTNB Fulton Bancorp Inc. Fulton MO MW SAIF NASDAQ 10/18/96 21.375 36.75 NA
- ------- -----
FTSB Fort Thomas Financial Corp. Fort Thomas KY MW SAIF NASDAQ 06/28/95 15.500 23.17 19.6
- ------- -----
GOSB GSB Financial Corp. Goshen NY MA BIF NASDAQ 07/09/97 17.125 38.50 NA
- ------- -----
GSFC Green Street Financial Corp. Fayetteville NC SE SAIF NASDAQ 04/04/96 18.000 77.37 26.9
- ------- -----
GSLA GS Financial Corp. Metairie LA SW SAIF NASDAQ 04/01/97 18.000 61.89 NA
- ------- -----
GTPS Great American Bancorp Champaign IL MW SAIF NASDAQ 06/30/95 18.500 31.39 43.0
- ------- -----
GUPB GFSB Bancorp Inc. Gallup NM SW SAIF NASDAQ 06/30/95 20.250 16.21 21.1
- -------
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 21.250 26.57 13.6
- ------- -----
HCBB HCB Bancshares Inc. Camden AR SE SAIF NASDAQ 05/07/97 13.625 36.04 NA
- ------- -----
HFFB Harrodsburg First Fin Bancorp Harrodsburg KY MW SAIF NASDAQ 10/04/95 17.250 34.93 23.0
- -------
HFSA Hardin Bancorp Inc. Hardin MO MW SAIF NASDAQ 09/29/95 17.750 15.25 19.5
- -------
HHFC Harvest Home Financial Corp. Cheviot OH MW SAIF NASDAQ 10/10/94 14.750 13.49 27.8
- ------- -----
HMLK Hemlock Federal Financial Corp Oak Forest IL MW SAIF NASDAQ 04/02/97 17.375 36.08 NA
- ------- -----
HZFS Horizon Financial Svcs Corp. Oskaloosa IA MW SAIF NASDAQ 06/30/94 11.750 10.00 18.7
- -------------------------------------- -----
JXSB Jacksonville Savings Bk (MHC) Jacksonville IL MW SAIF NASDAQ 04/21/95 28.500 36.26 43.2
- -------------------------------------- -----
KSAV KS Bancorp Inc. Kenly NC SE SAIF NASDAQ 12/30/93 22.500 19.92 17.2
- -------
KSBK KSB Bancorp Inc. Kingfield ME NE BIF NASDAQ 06/24/93 21.000 26.00 16.2
- -------
KYF Kentucky First Bancorp Inc. Cynthiana KY MW SAIF AMSE 08/29/95 14.688 19.06 18.6
- -------
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 15.250 19.22 16.2
- -------
MARN Marion Capital Holdings Marion IN MW SAIF NASDAQ 03/18/93 27.500 48.89 17.5
- -------
MFLR Mayflower Co-operative Bank Middleboro MA NE BIF NASDAQ 12/23/87 23.750 21.15 18.3
- -------
MIFC Mid-Iowa Financial Corp. Newton IA MW SAIF NASDAQ 10/14/92 11.250 18.88 13.7
- ------- -----
MONT Montgomery Financial Corp. Crawfordsville IN MW SAIF NASDAQ 07/01/97 12.500 20.66 NA
- ------- -----
MSBF MSB Financial Inc. Marshall MI MW SAIF NASDAQ 02/06/95 19.500 24.06 22.7
- -------
MWBI Midwest Bancshares Inc. Burlington IA MW SAIF NASDAQ 11/12/92 17.750 18.07 18.3
- ------- -----
NBSI North Bancshares Inc. Chicago IL MW SAIF NASDAQ 12/21/93 25.875 24.73 38.6
- ------- -----
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 20.500 36.14 16.9
- ------- -----
NTMG Nutmeg Federal S&LA Danbury CT NE SAIF NASDAQ NA 10.750 10.61 39.8
- ------- -----
NWEQ Northwest Equity Corp. Amery WI MW SAIF NASDAQ 10/11/94 19.250 16.15 16.0
- -------
Source: SNL & F&C calculations
3
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
A B
Deposit Current Current Price/
Insurance Stock Market LTM
Agency Price Value Core EPS
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M) (x)
- ------ ---------- ---- ----- ------ ---------- -------- -------- ------- ------- --------
- --------------------------------------
PBHC Oswego City Savings Bk (MHC) Oswego NY MA BIF NASDAQ 11/16/95 30.000 57.50 31.3
- --------------------------------------
PCBC Perry County Financial Corp. Perryville MO MW SAIF NASDAQ 02/13/95 23.250 19.25 17.2
- ------- -----
PDB Piedmont Bancorp Inc. Hillsborough NC SE SAIF AMSE 12/08/95 10.375 28.54 39.9
- ------- -----
PEEK Peekskill Financial Corp. Peekskill NY MA SAIF NASDAQ 12/29/95 17.500 55.88 26.1
- -------
PFED Park Bancorp Inc. Chicago IL MW SAIF NASDAQ 08/12/96 17.750 43.16 22.5
- ------- -----
PFFC Peoples Financial Corp. Massillon OH MW SAIF NASDAQ 09/13/96 13.750 20.15 NA
- -------------------------------------- -----
PLSK Pulaski Savings Bank (MHC) Springfield NJ MA SAIF NASDAQ 04/03/97 20.000 41.40 NA
- -------------------------------------- -----
PRBC Prestige Bancorp Inc. Pleasant Hills PA MA SAIF NASDAQ 06/27/96 19.250 17.61 21.2
- ------- -----
PSFC Peoples-Sidney Financial Corp. Sidney OH MW SAIF NASDAQ 04/28/97 17.250 30.80 NA
- ------- -----
PSFI PS Financial Inc. Chicago IL MW SAIF NASDAQ 11/27/96 18.500 38.36 NA
- ------- -----
PTRS Potters Financial Corp. East Liverpool OH MW SAIF NASDAQ 12/31/93 18.500 17.85 16.1
- -------------------------------------- -----
PULB Pulaski Bank, Svgs Bank (MHC) St. Louis MO MW SAIF NASDAQ 05/11/94 30.000 62.82 38.5
- -------------------------------------- -----
QCFB QCF Bancorp Inc. Virginia MN MW SAIF NASDAQ 04/03/95 28.500 39.44 14.5
- ------- -----
RIVR River Valley Bancorp Madison IN MW SAIF NASDAQ 12/20/96 18.125 21.57 NA
- ------- -----
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95 24.500 30.16 24.8
- -------
SFFC StateFed Financial Corp. Des Moines IA MW SAIF NASDAQ 01/05/94 13.375 20.83 18.6
- ------- -----
SHSB SHS Bancorp Inc. Pittsburgh PA MA SAIF NASDAQ 10/01/97 17.250 14.14 NA
- -------------------------------------- -----
SKBO First Carnegie Deposit (MHC) Carnegie PA MA SAIF NASDAQ 04/04/97 18.875 43.41 NA
- -------------------------------------- -----
SMBC Southern Missouri Bancorp Inc. Poplar Bluff MO MW SAIF NASDAQ 04/13/94 19.750 31.84 21.5
- -------
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 19.375 15.10 31.8
- ------- -----
SRN Southern Banc Co. Gadsden AL SE SAIF AMSE 10/05/95 17.750 21.84 42.3
- ------- -----
SSM Stone Street Bancorp Inc. Mocksville NC SE SAIF AMSE 04/01/96 22.125 41.99 24.9
- ------- -----
SZB SouthFirst Bancshares Inc. Sylacauga AL SE SAIF AMSE 02/14/95 20.625 17.48 108.6
- ------- -----
THR Three Rivers Financial Corp. Three Rivers MI MW SAIF AMSE 08/24/95 20.250 16.68 20.1
- -------
TPNZ Tappan Zee Financial Inc. Tarrytown NY MA SAIF NASDAQ 10/05/95 20.000 29.76 28.2
- -------
TRIC Tri-County Bancorp Inc. Torrington WY WE SAIF NASDAQ 09/30/93 14.750 17.22 18.9
- -------
TWIN Twin City Bancorp Bristol TN SE SAIF NASDAQ 01/04/95 14.125 17.97 23.5
- -------
UBMT United Financial Corp. Great Falls MT WE SAIF NASDAQ 09/23/86 25.250 30.89 20.7
- --------------------------------------
WCFB Webster City Federal SB (MHC) Webster City IA MW SAIF NASDAQ 08/15/94 21.250 44.63 32.7
- --------------------------------------
WEHO Westwood Homestead Fin. Corp. Cincinnati OH MW SAIF NASDAQ 09/30/96 14.250 39.65 25.9
- -------
WHGB WHG Bancshares Corp. Lutherville MD MA SAIF NASDAQ 04/01/96 15.875 23.21 27.4
Maximum 83.000 77.37 108.6
Minimum 4.500 4.76 3.5
Average 19.666 28.11 25.4
Median 18.500 25.59 21.7
Source: SNL & F&C calculations
4
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
C
Tangible ROAA ROAA ROACE ROACE
Price/ Current Current Current Total Equity/ Equity/ Core Core Before Before Before Before
Core Price/ Price/Tang Price/ Dividend Assets Assets T Assets EPS EPS Extra Extra Extra Extra
EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) ($) (%) (%) (%) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM MRQ LTM MRQ LTM MRQ
- ------ ------ ---------- ---------- ------ -------- ------- ------- -------- ---- ---- ------ ------ ------ ------
- ------- ----
AABC 2.6 143.1 143.1 12.4 -- 105,639 8.7 8.7 1.12 1.05 1.44 5.02 22.55 62.33
- ------- ----
AFBC 23.4 118.3 118.3 18.2 1.80 105,717 15.4 15.4 NA 0.19 0.88 0.78 6.11 5.06
- -------
AFED 20.4 117.8 117.8 17.1 1.28 159,181 13.5 13.5 NA 0.23 0.38 0.79 2.96 5.83
- -------
AMFC 22.9 110.4 110.4 15.4 1.70 103,388 13.9 13.9 0.70 0.18 1.03 1.17 6.30 8.14
- -------
ASBP 21.1 131.1 131.1 20.4 2.96 112,449 15.6 15.6 0.64 0.16 0.97 0.87 5.89 5.59
- ------- ----
BDJI 20.0 157.8 157.8 16.9 -- 111,492 10.7 10.7 1.18 0.35 0.65 0.71 5.87 6.50
- ------- ----
BFSB 19.1 156.6 156.6 23.2 1.98 139,179 14.1 14.1 1.46 0.37 1.20 1.20 8.39 8.48
- -------
BWFC 44.4 180.4 180.4 25.5 1.33 164,854 14.2 14.2 0.35 0.09 1.03 1.46 6.76 10.30
- ------- ----
BYFC 165.6 89.7 89.7 8.8 1.51 124,740 10.6 10.6 0.43 0.02 0.29 0.33 2.44 2.97
- ------- ----
CBES 19.5 124.3 124.3 21.0 1.83 106,635 16.9 16.9 1.16 0.28 1.24 1.17 6.89 6.81
- ------- ----
CCFH NM 139.0 139.0 14.8 2.79 109,342 10.7 10.7 (0.20) (0.05) 0.14 (0.02) 1.10 (0.23)
- ------- ----
CENB 19.8 110.6 110.6 33.5 2.41 100,937 30.3 30.3 NA 1.05 1.58 1.57 6.21 5.20
- ------- ----
CFFC 25.5 139.6 139.6 18.4 2.11 183,278 13.2 13.2 1.50 0.26 1.12 0.73 8.18 5.45
- -------
CFNC 22.0 126.6 126.6 28.6 1.36 114,069 22.6 22.6 NA 0.20 1.20 1.26 5.52 5.55
- ------- ----
CIBI 14.1 130.3 130.3 15.3 2.03 94,328 11.8 11.8 1.05 0.28 0.97 1.01 8.37 8.53
- ------- ----
CLAS 67.7 107.4 126.5 16.0 1.72 132,186 14.9 12.9 0.68 0.06 0.81 0.83 5.53 5.61
- ------- ----
CNSB 41.4 149.9 149.9 36.5 1.12 97,411 24.3 24.3 0.52 0.13 0.79 0.78 3.20 3.19
- ------- ----
DCBI 18.0 117.8 117.8 31.4 -- 107,796 26.6 26.6 NA 0.24 1.61 1.74 8.03 6.32
- ------- ----
EFBC 24.3 106.4 106.4 38.7 1.82 110,540 36.4 36.4 NA 0.17 NA 1.49 NA 4.04
- ------- ----
EGLB 80.2 113.0 113.0 13.4 -- 172,160 11.9 11.9 0.34 0.06 0.32 0.24 2.62 2.04
- ------- ----
ESX NM NM NM 2.5 -- 191,886 7.8 7.8 (1.19) (0.85) 0.12 (1.03) 125.88 (719.41)
- ------- ----
ETFS 27.1 101.4 101.4 18.3 0.97 115,949 18.0 18.0 0.73 0.19 0.67 0.72 3.67 4.00
- -------
FBNW NA 111.0 111.0 19.8 1.58 177,870 16.4 16.4 NA NA 0.85 1.21 NA 9.91
- -------
FBSI 14.8 125.4 125.4 17.5 0.77 162,755 13.9 13.9 1.54 0.44 1.20 1.27 8.49 9.48
- -------
FCB 35.7 127.6 127.6 30.2 1.00 96,391 23.7 23.7 0.50 0.14 0.83 0.89 3.36 3.75
- ------- ----
FCME 19.7 140.7 140.7 13.7 -- 148,571 9.8 9.8 4.33 0.19 4.13 0.89 46.76 9.35
- ------- ----
FFBI 23.9 116.0 116.0 10.4 -- 84,242 8.9 8.9 0.91 0.22 (0.04) 0.56 (0.54) 6.40
- ------- ----
FFBS 18.5 147.6 147.6 25.9 2.25 134,952 16.7 16.7 1.20 0.30 1.41 1.36 7.42 7.57
- ------- ----
FFDB 15.2 144.1 157.4 13.9 2.35 176,464 9.6 8.9 1.43 0.35 1.03 0.95 10.60 9.99
- ------- ----
FFDF 27.4 125.3 125.3 30.5 1.61 88,220 24.3 24.3 0.62 0.17 1.93 1.02 7.83 4.17
- ------- ----
FFSL 18.6 126.3 126.3 12.9 1.68 112,523 10.3 10.3 0.68 0.20 0.65 0.72 6.09 7.02
- ------- ----
FFWC 16.1 169.4 186.7 16.5 1.73 181,468 9.7 8.9 2.41 0.65 1.05 1.04 10.54 10.77
- ------- ----
FFWD 18.5 189.4 189.4 23.5 2.16 166,520 12.4 12.4 0.93 0.25 1.40 1.48 11.07 11.98
- ------- ----
Source: SNL & F&C calculations
5
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
C
Tangible ROAA ROAA ROACE ROACE
Price/ Current Current Current Total Equity/ Equity/ Core Core Before Before Before Before
Core Price/ Price/Tang Price/ Dividend Assets Assets T Assets EPS EPS Extra Extra Extra Extra
EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) ($) (%) (%) (%) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM MRQ LTM MRQ LTM MRQ
- ------ ------ ---------- ---------- ------ -------- ------- ------- -------- ---- ---- ------ ------ ------ ------
- ------- ----
FGHC 17.2 196.0 213.7 16.1 0.65 156,383 8.2 7.6 0.37 0.12 0.66 1.00 7.97 11.97
- ------- ----
FKKYD 19.4 136.2 136.2 22.9 4.30 133,255 16.8 16.8 0.52 0.24 0.09 1.13 0.37 6.72
- -------
FTF 14.6 168.1 168.1 25.8 2.18 178,710 15.3 15.3 1.63 0.44 1.71 1.72 10.74 11.10
- ------- ----
FTNB 31.4 143.7 143.7 35.4 0.94 103,713 24.7 24.7 NA 0.17 1.25 1.33 5.41 5.33
- ------- ----
FTSB 16.9 146.8 146.8 23.7 1.61 97,843 16.1 16.1 0.79 0.23 1.22 1.33 7.18 8.25
- ------- ----
GOSB NA NA NA NA -- 154,649 8.1 8.1 NA NA NA 0.40 NA NA
- ------- ----
GSFC 26.5 123.0 123.0 43.5 2.44 177,962 35.4 35.4 0.67 0.17 1.58 1.64 4.47 4.58
- ------- ----
GSLA 26.5 109.5 109.5 47.2 1.56 131,071 43.1 43.1 NA 0.17 1.31 1.67 NA 3.81
- ------- ----
GTPS 35.6 100.3 100.3 22.5 2.16 139,568 20.4 20.4 0.43 0.13 0.53 0.66 2.38 3.15
- -------
GUPB 22.0 115.1 115.1 14.8 1.98 109,964 12.8 12.8 0.96 0.23 0.87 0.70 5.47 5.11
- -------
HBS 8.1 122.6 126.9 17.4 2.64 152,796 14.2 13.8 1.56 0.66 1.37 2.18 9.41 15.52
- -------
HCBB 31.0 94.4 98.0 18.0 -- 199,946 19.1 18.5 NA 0.11 NA 0.58 NA 3.08
- ------- ----
HFFB 21.6 110.0 110.0 32.1 2.32 108,949 26.9 26.9 0.75 0.20 1.03 1.39 3.80 5.23
- ------- ----
HFSA 21.1 112.7 112.7 13.0 2.70 117,364 11.5 11.5 0.91 0.21 0.80 0.65 5.88 5.31
- ------- ----
HHFC 19.4 130.4 130.4 15.4 2.98 87,596 11.8 11.8 0.53 0.19 0.30 0.80 2.31 6.60
- ------- ----
HMLK 19.7 115.4 115.4 22.3 1.38 161,905 19.3 19.3 NA 0.22 0.37 1.03 NA 5.41
- ------- ----
HZFS 14.0 114.4 114.4 11.4 1.53 87,784 10.0 10.0 0.63 0.21 0.81 1.14 7.85 11.52
- ------- ----
JXSB 35.6 209.3 209.3 22.1 1.58 164,235 10.6 10.6 0.66 0.20 0.64 0.74 6.04 7.16
- ------- ----
KSAV 18.2 136.9 136.9 18.1 2.67 109,937 13.2 13.2 1.31 0.31 1.21 1.10 8.84 8.19
- ------- ----
KSBK 14.6 236.0 248.2 17.4 0.38 149,657 7.4 7.0 1.30 0.36 1.07 1.21 14.91 16.68
- ------- ----
KYF 17.5 130.1 130.1 21.7 3.40 88,089 16.7 16.7 0.79 0.21 1.15 1.21 6.64 7.26
- -------
LOGN 15.9 118.6 118.6 22.4 2.62 85,801 18.9 18.9 0.94 0.24 1.42 1.41 7.28 7.39
- -------
MARN 19.1 123.8 123.8 27.2 3.20 179,822 22.0 22.0 1.57 0.36 1.70 1.50 7.49 6.72
- ------- ----
MFLR 17.5 170.0 172.7 16.4 2.86 129,033 9.6 9.5 1.30 0.34 1.05 1.04 10.91 10.73
- ------- ----
MIFC 14.1 156.5 156.7 14.8 0.71 128,017 9.4 9.4 0.82 0.20 1.27 1.09 13.68 11.66
- ------- ----
MONT NA 105.8 105.8 20.3 1.76 101,986 19.1 19.1 NA NA 0.69 0.89 NA 4.65
- ------- ----
MSBF 22.2 188.8 188.8 31.2 1.44 77,014 16.5 16.5 0.86 0.22 1.50 1.54 8.42 9.16
- ------- ----
MWBI 16.4 174.4 174.4 12.1 1.35 149,850 6.9 6.9 0.97 0.27 0.87 1.13 12.54 16.37
- ------- ----
NBSI 53.9 151.9 151.9 20.4 1.86 122,081 13.4 13.4 0.67 0.12 0.63 0.37 4.37 2.69
- -------
NEIB 15.5 132.2 132.2 19.0 1.66 190,319 14.4 14.4 1.21 0.33 1.20 1.28 7.78 8.66
- ------- ----
NTMG 38.4 182.8 182.8 10.1 1.40 105,151 8.3 8.3 0.27 0.07 0.68 0.81 10.98 13.01
- ------- ----
NWEQ 15.0 132.5 132.5 16.7 2.91 96,954 11.7 11.7 1.20 0.32 1.03 1.06 8.75 9.23
- ------- ----
Source: SNL & F&C calculations
6
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
C
Tangible ROAA ROAA ROACE ROACE
Price/ Current Current Current Total Equity/ Equity/ Core Core Before Before Before Before
Core Price/ Price/Tang Price/ Dividend Assets Assets T Assets EPS EPS Extra Extra Extra Extra
EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) ($) (%) (%) (%) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM MRQ LTM MRQ LTM MRQ
- ------ ------ ---------- ---------- ------ -------- ------- ------- -------- ---- ---- ------ ------ ------ ------
- ------- ----
PBHC 32.6 249.6 297.0 29.8 0.93 193,005 11.9 10.2 0.96 0.23 1.06 1.01 9.21 8.49
- ------- ----
PCBC 19.4 123.6 123.6 23.7 1.72 81,105 19.2 19.2 1.35 0.30 0.93 1.14 4.97 6.10
- -------
PDB 18.5 137.2 137.2 22.6 3.86 126,544 16.4 16.4 0.26 0.14 (0.25) 1.34 (1.39) 7.97
- ------- ----
PEEK 25.7 118.2 118.2 30.8 2.06 181,242 26.1 26.1 0.67 0.17 1.15 1.09 4.33 4.20
- ------- ----
PFED 22.2 106.9 106.9 24.7 -- 174,515 23.1 23.1 0.79 0.20 1.10 1.03 4.84 4.49
- ------- ----
PFFC 24.6 87.1 87.1 23.7 3.64 86,486 27.2 27.2 NA 0.14 0.59 0.92 2.31 3.39
- ------- ----
PLSK 31.3 193.1 193.1 23.1 1.50 178,987 12.0 12.0 NA 0.16 0.64 0.73 NA 6.12
- ------- ----
PRBC 20.1 114.0 114.0 12.8 0.62 137,834 11.2 11.2 0.91 0.24 0.62 0.59 5.10 5.27
- ------- ----
PSFC 21.6 109.7 109.7 30.0 1.62 102,835 25.3 25.3 NA 0.20 1.04 1.31 NA 5.18
- ------- ----
PSFI 24.3 125.3 125.3 46.8 2.60 85,698 37.3 37.3 NA 0.19 2.03 1.98 5.26 5.25
- ------- ----
PTRS 18.5 165.0 165.0 14.5 1.08 122,716 8.8 8.8 1.15 0.25 0.98 0.91 10.93 10.07
- ------- ----
PULB 34.1 267.1 267.1 34.9 3.67 180,232 13.0 13.0 0.78 0.22 0.67 1.19 5.21 9.16
- -------
QCFB 13.7 151.4 151.4 24.9 -- 158,192 16.5 16.5 1.96 0.52 1.65 1.63 9.33 9.58
- -------
RIVR 17.4 122.5 124.2 15.6 0.88 138,461 12.7 12.6 NA 0.26 0.76 0.90 6.28 7.20
- -------
SFED 24.5 138.9 138.9 17.3 1.14 174,093 12.5 12.5 0.99 0.25 0.69 0.68 5.48 5.59
- -------
SFFC 22.3 135.7 135.7 23.8 1.50 87,542 17.5 17.5 0.72 0.15 1.28 1.03 7.20 5.86
- -------
SHSB NA NA NA NA -- 88,460 13.3 13.3 NA NA 0.45 0.66 NA NA
- -------
SKBO 42.9 177.9 177.9 29.5 1.59 147,102 16.6 16.6 NA 0.11 0.59 0.87 NA 5.27
- -------
SMBC 23.5 120.7 120.7 19.5 2.53 163,297 16.2 16.2 0.92 0.21 0.93 0.88 5.81 5.41
- -------
SOBI 26.9 112.3 112.3 17.9 1.65 84,279 14.8 14.8 0.61 0.18 0.62 0.60 3.88 4.00
- -------
SRN 34.1 120.4 121.5 20.6 1.97 106,164 17.1 17.0 0.42 0.13 0.47 0.54 2.77 3.19
- ------- ----
SSM 27.7 135.6 135.6 40.1 2.03 104,773 29.6 29.6 0.89 0.20 1.56 1.49 4.57 4.98
- ------- ----
SZB 34.4 128.4 128.4 18.0 2.42 97,283 14.0 14.0 0.19 0.15 (0.03) 0.52 (0.20) 3.73
- -------
THR 18.8 128.6 129.1 17.7 1.98 94,216 13.8 13.7 1.01 0.27 0.90 0.95 6.48 6.98
- -------
TPNZ 29.4 139.3 139.3 23.9 1.40 124,603 17.2 17.2 0.71 0.17 0.85 0.78 4.87 4.60
- -------
TRIC 17.6 127.5 127.5 19.5 2.71 88,173 15.3 15.3 0.78 0.21 1.05 0.96 7.13 6.34
- -------
TWIN 18.6 129.9 129.9 16.8 2.83 106,931 12.9 12.9 0.60 0.19 0.85 1.08 6.65 8.38
- ------- ----
UBMT 19.1 124.8 124.8 30.0 3.96 103,082 24.0 24.0 1.22 0.33 1.41 1.53 6.06 6.52
- ------- ----
WCFB 33.2 202.0 202.0 47.2 3.77 94,481 23.4 23.4 0.65 0.16 1.42 1.38 6.09 5.94
- ------- ----
WEHO 23.8 100.4 100.4 27.8 1.97 142,878 27.7 27.7 0.55 0.15 1.01 0.56 3.23 1.97
- ------- ----
WHGB 23.4 112.1 112.1 23.2 2.02 100,235 20.7 20.7 0.58 0.17 0.52 0.93 2.25 4.37
Maximum 165.6 267.1 297.0 47.2 4.30 199,946 43.1 43.1 4.33 1.05 4.13 5.02 125.88 62.33
Minimum 2.6 87.1 87.1 2.5 -- 77,014 6.9 6.9 (1.19) (0.85) (0.25) (1.03) (1.39) (719.41)
Average 25.7 137.5 139.0 22.2 1.74 128,396 16.6 16.6 0.90 0.23 0.97 1.05 8.29 (0.31)
Median 21.3 128.4 128.4 20.4 1.71 119,723 14.8 14.6 0.79 0.20 0.97 1.03 6.11 6.22
Source: SNL & F&C calculations
7
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
D E F
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Merger Current Assets Deposits Assets Assets Assets For Others Assets
Target? Pricing (%) (%) (%) (%) (%) ($000) (%)
Ticker (Y/N) Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ Reasons Excluded
- ------ ------- -------- ------ -------- ------ --------- ----------- ---------- --------- ----------------
- ------- ---- -----
AABC N 12/12/97 1.58 57.86 52.34 90.46 -- NA NA C, D, E
- ------- ---- -----
AFBC N 12/12/97 0.31 113.20 86.57 76.48 7.32 NA NA B
- ------- -----
AFED N 12/12/97 0.45 55.40 47.07 84.96 0.95 -- -- B, E
- ------- ----- --------
AMFC N 12/12/97 0.32 102.43 73.06 71.33 13.06 -- -- Selected
- ------- ----- --------
ASBP N 12/12/97 0.90 86.15 68.38 79.37 3.00 -- -- E
- ------- -----
BDJI N 12/12/97 0.24 65.08 48.45 74.45 12.76 162 0.15 C, E
- ------- ----- --------
BFSB N 12/12/97 0.15 112.70 83.90 74.45 10.78 2,903 2.09 Selected
- ------- --------
BWFC N 12/12/97 0.21 112.88 72.01 63.80 21.23 27,928 16.94 B
- ------- ----
BYFC N 12/12/97 1.62 97.58 83.95 86.04 2.00 NA NA C, D
- ------- ---- ------
CBES N 12/12/97 0.59 126.14 90.59 71.82 9.14 29,570 27.73 F
- ------- ------
CCFH N 12/12/97 0.20 103.98 82.17 79.03 9.15 8,868 8.11 B, C
- ------- -----
CENB N 12/12/97 0.25 93.44 64.56 69.09 -- -- -- B, C, E
- ------- ----- --------
CFFC N 12/12/97 0.56 126.26 88.35 69.97 15.82 9,610 5.24 Selected
- ------- --------
CFNC N 12/12/97 0.16 93.98 71.26 75.82 -- 8,000 7.01 B
- -------
CIBI N 12/12/97 0.53 107.50 84.42 78.53 9.05 445 0.47 C
- ------- -----
CLAS N 12/12/97 0.43 89.59 67.32 75.14 8.95 -- -- E
- ------- -----
CNSB N 12/12/97 0.50 93.03 69.68 74.91 -- 20,744 21.30 B, C, E
- ------- -----
DCBI N 12/12/97 0.45 109.07 78.29 71.78 0.93 -- -- B, C
- ------- -----
EFBC N 12/12/97 -- 65.37 40.30 61.65 0.64 NA NA B, C, E
- ------- ---- ----- ------
EGLB N 12/12/97 1.48 94.94 72.65 76.52 10.89 36,765 21.36 B, C, D, F
- ------- ---- ------
ESX N 12/12/97 1.92 108.86 85.65 78.67 12.39 306,041 159.49 B, C, D, F
- ------- ---- ----- ------
ETFS N 12/12/97 0.27 64.80 49.49 76.37 3.62 39,976 34.48 E, F
- ------- ---- ----- ------
FBNW N 12/12/97 1.67 123.60 75.39 61.00 19.76 129,822 72.99 B, D, F
- ------- ---- ------ --------
FBSI N 12/12/97 0.13 114.35 84.39 73.80 11.89 14 0.01 Selected
- ------- --------
FCB N 12/12/97 NA NA NA 74.89 0.77 NA NA B
- ------- ---- ------
FCME N 12/12/97 1.59 91.39 71.56 78.30 11.76 42,806 28.81 C, D, E
- ------- ---- ----- ------
FFBI N 12/12/97 0.32 83.44 67.21 80.54 9.73 69,011 81.92 C, E, F
- ------- ----- ------ --------
FFBS N 12/12/97 0.03 90.62 71.00 78.35 3.41 354 0.26 G
- ------- --------
FFDB N 12/12/97 0.98 78.49 70.03 89.21 0.57 NA NA C
- ------- -----
FFDF N 12/12/97 NA 103.14 66.97 64.93 9.39 NA NA C, E
- ------- -----
FFSL N 12/12/97 0.99 98.69 66.85 67.75 21.06 2,200 1.96 C, E
- ------- -----
FFWC N 12/12/97 0.18 104.83 66.40 63.34 25.79 22,787 12.56 C, E
- ------- ----- ------
FFWD N 12/12/97 0.03 110.66 82.06 74.15 12.63 37,221 22.35 F
- ------- ------
Source: SNL & F&C calculations
8
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
D E F
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Merger Current Assets Deposits Assets Assets Assets For Others Assets
Target? Pricing (%) (%) (%) (%) (%) ($000) (%)
Ticker (Y/N) Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ Reasons Excluded
- ------ ------- -------- ------ -------- ------ --------- ----------- ---------- --------- ----------------
- ------- ----
FGHC N 12/12/97 1.41 105.35 85.03 80.71 8.85 -- -- C, D
- ------- ----
FKKYD N 12/12/97 -- 145.28 92.71 63.82 17.89 -- -- B
- ------- --------
FTF N 12/12/97 0.07 103.68 83.08 80.13 2.79 23,362 13.07 Selected
- ------- --------
FTNB N 12/12/97 0.86 133.46 87.17 65.31 8.19 NA NA B, C
- ------- ----
FTSB N 12/12/97 1.91 124.42 91.37 73.44 9.04 -- -- D
- ------- ----
GOSB N 12/12/97 NA NA NA 62.41 -- NA NA B, C
- -------
GSFC N 12/12/97 0.10 114.47 72.46 63.30 -- -- -- C
- ------- -----
GSLA N 12/12/97 0.01 85.99 36.77 42.76 13.00 -- -- B, C, E
- ------- -----
GTPS N 12/12/97 0.01 100.56 78.95 78.51 -- NA NA B
- ------- -----
GUPB N 12/12/97 0.29 97.89 53.72 54.88 31.24 -- -- E
- ------- ----- --------
HBS N 12/12/97 0.67 97.44 75.44 77.42 6.87 -- -- Selected
- ------- ----- --------
HCBB N 12/12/97 NA 69.89 51.89 74.25 5.00 NA NA B, E
- ------- -----
HFFB N 12/12/97 -- 102.71 73.91 71.96 -- -- -- C
- ------- -----
HFSA N 12/12/97 0.09 76.50 49.43 64.61 22.58 9,071 7.73 C, E
- ------- -----
HHFC N 12/12/97 0.11 79.16 51.58 65.15 22.43 262 0.30 C, E
- ------- -----
HMLK N 12/12/97 -- 47.25 37.61 79.60 -- 1,683 1.04 B, E
- ------- -----
HZFS N 12/12/97 0.71 97.51 62.52 64.12 25.16 1,592 1.81 C, E
- ------- ----- ------
JXSB N 12/12/97 0.79 90.76 79.43 87.51 0.16 81,067 49.36 A, B, C, F
- ------- ------ --------
KSAV N 12/12/97 0.53 107.50 84.55 78.65 7.28 -- -- Selected
- ------- ---- ------ --------
KSBK N 12/12/97 1.39 107.81 77.38 71.77 19.43 75,073 50.16 C, D, F
- ------- ---- ----- ------
KYF N 12/12/97 0.04 90.77 56.42 62.15 20.17 -- -- E
- ------- ----- --------
LOGN N 12/12/97 0.49 99.17 71.36 71.96 6.41 -- -- Selected
- ------- ---- --------
MARN N 12/12/97 1.08 127.59 85.56 67.05 8.06 32,236 17.93 D
- ------- ---- ----- ------
MFLR N 12/12/97 0.57 71.93 56.52 78.57 10.85 31,599 24.49 C, E, F
- ------- ----- ------
MIFC N 12/12/97 NA 74.65 52.12 69.82 19.53 NA NA C, E
- ------- -----
MONT N 12/12/97 0.73 125.36 89.00 71.00 8.26 -- -- B
- ------- ---- ----- ------
MSBF N 12/12/97 0.02 169.02 92.01 54.44 27.61 33,411 43.38 F
- ------- ---- ----- ------
MWBI N 12/12/97 0.81 86.57 61.14 70.62 21.69 -- -- C, E
- ------- -----
NBSI N 12/12/97 -- 104.73 62.73 59.90 23.84 131 0.11 B, E
- ------- ----- --------
NEIB N 12/12/97 0.17 175.42 89.38 50.95 34.15 2,061 1.08 Selected
- ------- ------ --------
NTMG N 12/12/97 NA 111.58 88.08 78.94 9.99 368,095 350.06 B, C, F
- ------- ---- ------
NWEQ N 12/12/97 1.42 127.25 82.18 64.58 23.09 25,821 26.63 C, D, F
- ------- ---- ------
Source: SNL & F&C calculations
9
FERGUSON & COMPANY
- ------------------
Exhibit VI.1 -- Comparative Group Selection (Continued)
D E F
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Merger Current Assets Deposits Assets Assets Assets For Others Assets
Target? Pricing (%) (%) (%) (%) (%) ($000) (%)
Ticker (Y/N) Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ Reasons Excluded
- ------ ------- -------- ------ -------- ------ --------- ----------- ---------- --------- ----------------
- ------- -----
PBHC N 12/12/97 0.91 73.80 59.68 80.87 6.40 -- -- A, C, E
- ------- -----
PCBC N 12/12/97 0.03 21.97 16.44 74.83 5.55 -- -- E
- ------- -----
PDB N 12/12/97 0.63 123.82 83.07 67.08 15.45 10,506 8.30 B
- ------- -----
PEEK N 12/12/97 0.66 35.78 26.03 72.75 -- -- -- C, E
- ------- -----
PFED N 12/12/97 0.24 54.05 39.73 73.50 1.72 -- -- E
- ------- -----
PFFC N 12/12/97 -- 84.64 60.45 71.43 -- -- -- B, C, E
- ------- -----
PLSK N 12/12/97 0.65 67.24 56.62 84.21 3.17 -- -- A, B, E
- ------- -----
PRBC N 12/12/97 0.33 103.90 67.89 65.34 22.62 -- -- C, E
- ------- -----
PSFC N 12/12/97 0.78 120.18 89.29 74.29 -- -- -- B, C
- ------- -----
PSFI N 12/12/97 0.68 86.24 41.58 48.21 9.92 -- --
- ------- -----
PTRS N 12/12/97 0.44 78.90 64.84 82.19 8.03 459 0.37 B, C, E
- ------- -----
PULB N 12/12/97 0.20 95.56 79.58 83.28 1.22 26,489 14.70 A, B
- ------- -----
QCFB N 12/12/97 0.24 62.15 41.07 66.09 13.43 NA NA E
- ------- -----
RIVR N 12/12/97 0.71 98.31 82.13 83.54 2.17 NA NA B
- ------- --------
SFED N 12/12/97 0.71 86.44 74.40 86.08 -- 3,771 2.17 Selected
- ------- ---- --------
SFFC N 12/12/97 2.19 130.17 77.82 59.78 21.70 -- -- D
- ------- ---- -----
SHSB N 12/12/97 1.42 89.35 65.63 73.46 12.05 NA NA B, C, D, E
- ------- ---- -----
SKBO N 12/12/97 NA 80.98 42.39 52.35 29.42 NA NA A, B, E
- ------- -----
SMBC N 12/12/97 0.88 96.07 69.00 71.83 10.74 -- -- E
- ------- ----- --------
SOBI N 12/12/97 0.13 110.72 76.81 69.37 15.44 -- -- Selected
- ------- ----- --------
SRN N 12/12/97 -- 43.79 35.93 82.04 -- NA NA B, E
- ------- -----
SSM N 12/12/97 -- 135.09 86.03 63.68 4.82 -- -- C
- -------
SZB N 12/12/97 0.53 114.80 73.80 64.29 19.01 -- -- B
- ------- -----
THR N 12/12/97 0.87 105.19 67.97 64.62 19.89 NA NA E
- ------- ---- -----
TPNZ N 12/12/97 1.16 57.25 46.56 81.33 -- -- -- D, E
- ------- ---- -----
TRIC N 12/12/97 -- 83.25 44.68 53.66 29.89 157 0.18 E
- ------- ----- ------
TWIN N 12/12/97 0.08 84.74 71.02 83.81 0.94 58,017 54.26 F
- ------- ----- ------
UBMT N 12/12/97 0.35 47.48 33.21 69.95 4.85 NA NA C, E
- ------- -----
WCFB N 12/12/97 0.07 76.90 57.76 75.11 0.27 -- -- A, E
- ------- -----
WEHO N 12/12/97 -- 129.96 78.26 60.22 11.74 2,484 1.74 C
- ------- --------
WHGB N 12/12/97 0.15 108.52 79.50 73.26 3.99 9,045 9.02 Selected
--------
Maximum 2.19 175.42 92.71 90.46 34.15 368,095 350.06
Minimum -- 21.97 16.44 42.76 -- -- --
Average 0.54 95.94 67.90 71.66 10.07 20,670 15.62
Median 0.43 97.55 71.14 73.01 9.00 162 0.18
Source: SNL & F&C calculations
10
FERGUSON & COMPANY
- ------------------
Exhibit VI.2 -- Comparative Group Selected
Deposit Current Current Price/
Insurance Stock Market LTM
Agency Price Value Core EPS
Ticker Short Name City State Region (BIF/SAIF) Exchange IPO Date ($) ($M) (x)
- ------ ---------- ---- ----- ------ ---------- -------- -------- ------- ------- --------
AMFC AMB Financial Corp. Munster IN MW SAIF NASDAQ 04/01/96 16.500 15.90 23.6
BFSB Bedford Bancshares Inc. Bedford VA SE SAIF NASDAQ 08/22/94 28.250 32.27 19.4
CFFC Community Financial Corp. Staunton VA SE SAIF NASDAQ 03/30/88 26.500 33.84 17.7
FBSI First Bancshares Inc. Mountain Grove MO MW SAIF NASDAQ 12/22/93 26.000 28.43 16.9
FTF Texarkana First Financial Corp Texarkana AR SE SAIF AMSE 07/07/95 25.750 46.02 15.8
HBS Haywood Bancshares Inc. Waynesville NC SE BIF AMSE 12/18/87 21.250 26.57 13.6
KSAV KS Bancorp Inc. Kenly NC SE SAIF NASDAQ 12/30/93 22.500 19.92 17.2
LOGN Logansport Financial Corp. Logansport IN MW SAIF NASDAQ 06/14/95 15.250 19.22 16.2
NEIB Northeast Indiana Bancorp Huntington IN MW SAIF NASDAQ 06/28/95 20.500 36.14 16.9
SFED SFS Bancorp Inc. Schenectady NY MA SAIF NASDAQ 06/30/95 24.500 30.16 24.8
SOBI Sobieski Bancorp Inc. South Bend IN MW SAIF NASDAQ 03/31/95 19.375 15.10 31.8
WHGB WHG Bancshares Corp. Lutherville MD MA SAIF NASDAQ 04/01/96 15.875 23.21 27.4
Maximum 28.250 46.02 31.8
Minimum 15.250 15.10 13.6
Average 21.854 27.23 20.1
Median 21.875 27.50 17.4
Source: SNL & F&C calculations
11
FERGUSON & COMPANY
- ------------------
Exhibit VI.2 -- Comparative Group Selected (Continued)
Tangible ROAA ROAA ROACE ROACE
Price/ Current Current Current Total Equity/ Equity/ Core Core Before Before Before Before
Core Price/ Price/Tang Price/ Dividend Assets Assets T Assets EPS EPS Extra Extra Extra Extra
EPS Book Value Book Value Assets Yield ($000) (%) (%) ($) ($) (%) (%) (%) (%)
Ticker (x) (%) (%) (%) (%) MRQ MRQ MRQ LTM MRQ LTM MRQ LTM MRQ
- ------ ------ ---------- ---------- ------ -------- ------- ------- -------- ---- ---- ------ ------ ------ ------
AMFC 22.9 110.4 110.4 15.4 1.70 103,388 13.9 13.9 0.70 0.18 1.03 1.17 6.30 8.14
BFSB 19.1 156.6 156.6 23.2 1.98 139,179 14.1 14.1 1.46 0.37 1.20 1.20 8.39 8.48
CFFC 25.5 139.6 139.6 18.4 2.11 183,278 13.2 13.2 1.50 0.26 1.12 0.73 8.18 5.45
FBSI 14.8 125.4 125.4 17.5 0.77 162,755 13.9 13.9 1.54 0.44 1.20 1.27 8.49 9.48
FTF 14.6 168.1 168.1 25.8 2.18 178,710 15.3 15.3 1.63 0.44 1.71 1.72 10.74 11.10
HBS 8.1 122.6 126.9 17.4 2.64 152,796 14.2 13.8 1.56 0.66 1.37 2.18 9.41 15.52
KSAV 18.2 136.9 136.9 18.1 2.67 109,937 13.2 13.2 1.31 0.31 1.21 1.10 8.84 8.19
LOGN 15.9 118.6 118.6 22.4 2.62 85,801 18.9 18.9 0.94 0.24 1.42 1.41 7.28 7.39
NEIB 15.5 132.2 132.2 19.0 1.66 190,319 14.4 14.4 1.21 0.33 1.20 1.28 7.78 8.66
SFED 24.5 138.9 138.9 17.3 1.14 174,093 12.5 12.5 0.99 0.25 0.69 0.68 5.48 5.59
SOBI 26.9 112.3 112.3 17.9 1.65 84,279 14.8 14.8 0.61 0.18 0.62 0.60 3.88 4.00
WHGB 23.4 112.1 112.1 23.2 2.02 100,235 20.7 20.7 0.58 0.17 0.52 0.93 2.25 4.37
Maximum 26.9 168.1 168.1 25.8 2.67 190,319 20.7 20.7 1.63 0.66 1.71 2.18 10.74 15.52
Minimum 8.1 110.4 110.4 15.4 0.77 84,279 12.5 12.5 0.58 0.17 0.52 0.60 2.25 4.00
Average 19.1 131.1 131.5 19.6 1.93 138,731 14.9 14.9 1.17 0.32 1.11 1.19 7.25 8.03
Median 18.6 128.8 129.6 18.3 2.00 145,988 14.1 14.0 1.26 0.29 1.20 1.19 7.98 8.17
Source: SNL & F&C calculations
12
FERGUSON & COMPANY
- ------------------
Exhibit VI.2 -- Comparative Group Selected (Continued)
Loans Loans
NPAs/ Loans/ Loans/ Deposits/ Borrowings/ Serviced Serviced/
Merger Current Assets Deposits Assets Assets Assets For Others Assets
Target? Pricing (%) (%) (%) (%) (%) ($000) (%)
Ticker (Y/N) Date MRQ MRQ MRQ MRQ MRQ MRQ MRQ Reasons Excluded
- ------ ------- -------- ------ -------- ------ --------- ----------- ---------- --------- ----------------
AMFC N 12/12/97 0.32 102.43 73.06 71.33 13.06 -- -- Selected
BFSB N 12/12/97 0.15 112.70 83.90 74.45 10.78 2,903 2.09 Selected
CFFC N 12/12/97 0.56 126.26 88.35 69.97 15.82 9,610 5.24 Selected
FBSI N 12/12/97 0.13 114.35 84.39 73.80 11.89 14 0.01 Selected
FTF N 12/12/97 0.07 103.68 83.08 80.13 2.79 23,362 13.07 Selected
HBS N 12/12/97 0.67 97.44 75.44 77.42 6.87 -- -- Selected
KSAV N 12/12/97 0.53 107.50 84.55 78.65 7.28 -- -- Selected
LOGN N 12/12/97 0.49 99.17 71.36 71.96 6.41 -- -- Selected
NEIB N 12/12/97 0.17 175.42 89.38 50.95 34.15 2,061 1.08 Selected
SFED N 12/12/97 0.71 86.44 74.40 86.08 -- 3,771 2.17 Selected
SOBI N 12/12/97 0.13 110.72 76.81 69.37 15.44 -- -- Selected
WHGB N 12/12/97 0.15 108.52 79.50 73.26 3.99 9,045 9.02 Selected
Maximum 0.71 175.42 89.38 86.08 34.15 23,362 13.07
Minimum 0.07 86.44 71.36 50.95 -- -- --
Average 0.34 112.05 80.35 73.11 10.71 4,231 2.72
Median 0.25 108.01 81.29 73.53 9.03 1,038 0.55
Source: SNL & F&C calculations
13
LETTERS
March 31, 1998
Board of Directors
Douglas Savings Bank
14 North Dryden Avenue
Arlington Heights, Illinois
Gentlemen:
All capitalized terms not otherwise defined in this letter have the
meanings given such terms in the Plan of Conversion adopted by the Board of
Directors of Douglas Savings Bank, Arlington Heights, Illinois, ("Bank") on
February 4, 1998.
It is our understanding that, pursuant to Office of Thrift Supervision
regulations, subscription rights are non-transferable. Persons violating such
prohibition may lose their rights to purchase stock in the Conversion and be
subject to other possible sanctions.
Because the Subscription Rights to purchase shares of Common Stock in the
Bank to be issued to the Bank's employee stock benefit plans, depositors of the
Bank, and to other members of the Bank will be acquired by such recipients,
without cost, will be non-transferable and of short duration and will afford the
recipients the right only to purchase shares of Common Stock at the same price
as will paid by members of the general public in a Community Offering, we are of
the opinion that:
(1) the Subscription Rights will have no ascertainable fair market value
and,
(2) the price at which the Subscription Rights are exercisable will not be
more or less than the fair market value of the shares on the date of
exercise.
Sincerely,
Ferguson & Company
/s/ Charles M. Herbert
Charles M. Hebert
Principal
March 31, 1998
Board of Directors
Douglas Savings Bank
14 North Dryden Avenue
Arlington Heights, Illinois
Directors:
We hereby consent to the use of our firm's name in the Form AC Application
for Conversion of Douglas Savings Bank, and any amendments thereto, in the Form
S-1 Registration Statement of Ben Franklin Financial, Inc. and any amendments
thereto, and in the Application H- (e) 1-S for Ben Franklin Financial, Inc. We
also hereby consent to the inclusion of, summary of, and references to our
Appraisal Report and our opinion concerning subscription rights in such filings
including the Prospectus of Ben Franklin Financial, Inc.
Sincerely,
/s/ Charles M. Herbert
Charles M. Hebert
Principal
December 5, 1997
Board of Directors
Douglas Savings Bank
14 North Dryden Avenue
Arlington Heights, Illinois 60004
Dear Directors:
This letter sets forth the agreement between Douglas Savings Bank ("Douglas
Savings" or "Bank"), Arlington Heights, Illinois, and Ferguson & Company
("F&C"), Hurst, Texas, under the terms of which Douglas Savings has engaged F&C,
in connection with its conversion from mutual to stock form, to (1) determine
the pro forma market value of the shares of common stock to be issued and sold
by Douglas Savings' holding company; and (2) assist Douglas Savings in preparing
a business plan to be filed with the application for approval to convert to
stock.
F&C agrees to deliver the written valuation and business plan to Douglas
Savings at the above address on or before a mutually agreed upon date. Further,
F&C agrees to perform such other services as are necessary or required in
connection with comments from the applicable regulatory authorities relating to
the business plan and appraisal and the preparation of appraisal updates as
requested by Douglas Savings or its counsel. It is understood that the services
of F&C under this agreement shall be limited as herein described.
F&C's fee for the business plan and initial appraisal valuation report and
any required updates shall be $20,000. In addition, Douglas Savings shall
reimburse F&C for all out-of-pocket expenses, which will be reviewed by the
Board of Directors of Douglas Savings prior to payment. Payment under this
agreement shall be made as follows:
1. Five thousand dollars ($5,000) upon execution of this engagement
letter.
2. Five thousand dollars ($5,000) upon delivery of the business plan.
3. Ten thousand dollars ($10,000) upon delivery of the completed
appraisal report.
4. Out-of-pocket expenses are to be paid monthly.
If, during the course of Douglas Savings' conversion, unforeseen events
occur so as to change materially the nature or the work content of the services
described in this contract, the terms of the contract shall be subject to
renegotiation. Such unforeseen events shall include, but not be limited to,
major changes in the conversion regulations, appraisal guidelines or processing
procedures as they relate to conversion appraisals, major changes in Douglas
Savings' management or operating policies, execution of a merger agreement with
another institution prior to completion of conversion, and excessive delays or
suspension of processing of conversions by the regulatory authorities such that
completion of Douglas Savings' conversion requires the preparation by F&C of a
new appraisal report or business plan, excluding appraisal updates during the
course of the engagement.
Board of Directors
December 5, 1997
Page 2
To induce F&C to provide the services described above, Douglas Savings
hereby agrees as follows:
1. Douglas Savings shall supply in a timely manner to F&C such
information with respect to its business and financial condition as
F&C reasonably may request in order to make the aforesaid valuation.
Such information made available to F&C shall include, but not be
limited to, annual financial statements, periodic regulatory filings,
material agreements, debt instruments and corporate books and records.
2. Douglas Savings hereby represents and warrants, to the best of its
knowledge, that any information provided to F&C does not and will not,
at any time relevant hereto, contain any misstatement or untrue
statement of a material fact or omit any and all material facts
required to be stated therein or necessary to make the statements
therein not false or misleading in light of the circumstances under
which they were made.
3. (a) Douglas Savings shall indemnify and hold harmless F&C and any
employees of F&C who act for or on behalf of F&C in connection
with the services called for under this agreement, from and
against any and all loss, cost, damage, claim, liability or
expense of any kind, including reasonable attorneys fees and
other expenses incurred in investigating, preparing to defend and
defending any claim or claims (specifically including, but not
limited to, claims under federal and state securities laws)
arising out of any misstatement or untrue statement of a material
fact contained in the information supplied by Douglas Savings to
F&C or by an omission to state a material fact in the information
so provided which is required to be stated therein in order to
make the statement therein not false or misleading.
(b) F&C shall not be entitled to indemnification pursuant to
Paragraph 3(a) above with regard to any claim arising where, with
regard to the basis for such claim, F&C had knowledge that a
statement of a fact material to the evaluation and contained in
the information supplied by Douglas Savings was untrue or had
knowledge that a material fact was omitted from the information
so provided and that such material fact was necessary in order to
make the statement made to F&C not false or misleading.
(c) F&C additionally shall not be entitled to indemnification
pursuant to Paragraph 3(a) above notwithstanding its lack of
actual knowledge of an intentional misstatement or omission of a
material fact in the information provided if F&C is determined to
have been negligent or to have failed to exercise due diligence
in the preparation of its valuation.
Douglas Savings and F&C are not affiliated, and neither Douglas Savings nor
F&C has an economic interest in, or held in common with, the other and has not
derived a significant portion of its gross revenue, receipts or net income for
any period from transactions with the other.
In order for F&C to consider this proposal binding, please acknowledge your
consent to the foregoing by executing the enclosed copies of this letter and
returning one copy to us, together with a check payable to Ferguson & Company in
the amount of $5,000. The extra copy of this letter is for your conversion
counsel.
Yours very truly,
/s/ Charles M. Herbert
Charles M. Hebert
Principal
Agreed to ($5,000 check enclosed):
Douglas Savings Bank
Arlington Heights, Illinois
By: ______________________________