CONVERSION APPRAISAL REPORT
MUTUAL HOLDING COMPANY STOCK OFFERING
REVERE FEDERAL SAVINGS
REVERE, MASSACHUSETTS
DATED AS OF:
AUGUST 21, 1998
PREPARED BY:
RP FINANCIAL, LC
1700 NORTH MOORE STREET
SUITE 2210
ARLINGTON, VIRGINIA 22209
August 21, 1998
Board of Directors
Revere, MHC
Revere Federal Savings
310 Broadway
Revere, Massachusetts 02051
Gentlemen:
At your request, we have completed and hereby provide an independent
appraisal ("Appraisal") of the estimated pro forma market value of the Common
Stock which is to be offered in connection with the mutual-to-stock conversion
transaction described below.
This appraisal is furnished pursuant to the requirements of 563b.7 and has
been prepared in accordance with the "Guidelines for Appraisal Reports for the
Valuation of Savings and Loan Associations Converting from Mutual to Stock Form
of Organization" ("Valuation Guidelines") of the Office of Thrift Supervision
("OTS"), including the most recent revisions as of October 21, 1994, and
applicable regulatory interpretations thereof.
Description of Reorganization and Stock Issuance Plan
We understand that the Board of Directors of Revere, MHC, Revere,
Massachusetts (the "MHC") and the Board of Directors of Revere Federal Savings,
Revere, Massachusetts ("Revere Federal" or the "Bank") recently adopted a stock
issuance plan. Pursuant to the stock issuance plan, the Bank will reorganize
into what is called a "two-tier" mutual holding company structure. It is a
two-tier structure because it will have two levels of holding companies: a
"mid-tier" stock holding company and a "top-tier" mutual holding company. Under
the terms of the stock issuance plan: (i) the MHC will form RFS Bancorp, Inc.
("RFS Bancorp" or the "Holding Company") as a federal corporation; (ii) the MHC
will contribute 100 percent of the Bank's outstanding stock to the Holding
Company; and (iii) the Holding Company will issue shares of common stock to the
public and the MHC. The number of shares of common stock sold to the public will
equal 47 percent of the shares issued in the offering, and the number of shares
issued to the MHC will equal 53 percent of the shares issued in the offering.
It is anticipated that the public shares will be issued to the Bank's
Eligible Account Holders, the ESOP, Supplemental Eligible Account Holders and
Other Members. Any shares that are not sold in the Subscription offering may be
offered in the Community offering.
The aggregate amount of stock sold by the Holding Company cannot exceed the
appraised value of the Bank. Immediately following the offering, the primary
assets of the Holding Company will be the capital stock of the Bank and the net
offering proceeds remaining after contributing proceeds to the Bank in exchange
for 100 percent of the capital stock of the Bank. The Holding Company will
contribute at least 85 percent of the net offering proceeds in exchange for the
Bank's capital stock. The remaining net offering proceeds, retained at the
Holding Company, will be used to fund a loan to the ESOP with the remainder to
be used as general working capital.
RP Financial, LC.
Board of Directors
August 21, 1998
Page 2
RP Financial, LC. ("RP Financial") is a financial consulting firm serving
the financial services industry nationwide that, among other things, specializes
in financial valuations and analyses of business enterprises and securities,
including the pro forma valuation for savings institutions converting from
mutual-to-stock form. The background and experience of RP Financial is detailed
in Exhibit V-1. We believe that, except for the fee we will receive for our
appraisal and assisting the Bank in the preparation of its business plan, we are
independent of the Bank and the other parties engaged by the Bank to assist in
the stock issuance process.
Valuation Methodology
In preparing our appraisal, we have reviewed the Bank's and the Holding
Company's regulatory applications, including the offering circular as filed with
the OTS and the Securities and Exchange Commission ("SEC"). We have conducted a
financial analysis of the Bank that has included a review of its audited
financial information for fiscal years ended September 30, 1995 through 1997 and
nine months ended June 30, 1998 and various unaudited information and internal
financial reports through June 30, 1998 and due diligence related discussions
with the Bank's management; Shatswell, MacLeod & Company, P.C., the Bank's
independent auditor; Thacher Proffitt and Wood, the Bank's stock issuance
counsel; and Trident Securities, Inc., the Bank's financial and marketing
advisors in connection with the Holding Company's stock offering. All
conclusions set forth in the Appraisal were reached independently from such
discussions. In addition, where appropriate, we have considered information
based on other available published sources that we believe are reliable. While
we believe the information and data gathered from all these sources are
reliable, we cannot guarantee the accuracy and completeness of such information.
We have investigated the competitive environment within which the Bank
operates and have assessed the Bank's relative strengths and weaknesses. We have
kept abreast of the changing regulatory and legislative environment for
financial institutions and analyzed the potential impact on the Bank and the
industry as a whole. We have analyzed the potential effects of conversion on the
Bank's operating characteristics and financial performance as they relate to the
pro forma market value. We have reviewed the economy in the Bank's primary
market area and have compared the Bank's financial performance and condition
with publicly-traded thrifts in mutual holding company form, as well as all
publicly-traded thrifts. We have reviewed conditions in the securities markets
in general and in the market for thrift stocks in particular, including the
market for existing thrift issues and the market for initial public offerings by
thrifts. We have considered the market for the stock of all publicly-traded
mutual holding companies. We have also considered the expected market for the
Bank's public shares. We have excluded from such analyses thrifts subject to
announced or rumored acquisition, mutual holding company institutions that have
announced their intent to pursue second step conversions, and/or those
institutions that exhibit other unusual characteristics.
Our Appraisal is based on the Bank's representation that the information
contained in the regulatory applications and additional information furnished to
us by the Bank, its independent auditors, legal counsel and other authorized
agents are truthful, accurate and complete. We did not independently verify the
financial statements and other information provided by the Bank, its independent
auditors, legal counsel and other authorized agents nor did we independently
value the assets or liabilities of the Bank. The valuation considers the Bank
only as a going concern and should not be considered as an indication of the
Bank's liquidation value.
RP Financial, LC.
Board of Directors
August 21, 1998
Page 3
Our appraised value is predicated on a continuation of the current
operating environment for the Bank, the MHC and the Holding Company and for all
thrifts and their holding companies. Changes in the local, state and national
economy, the legislative and regulatory environment for financial institutions
and mutual holding companies, the stock market, interest rates, and other
external forces (such as natural disasters or significant world events) may
occur from time to time, often with great unpredictability, and may materially
impact the value of thrift stocks as a whole or the Bank's, the MHC's and
Holding Company's values alone. It is our understanding that there are no
current or long-term plans for pursuing a second step conversion or for selling
control of the Holding Company or the Bank following the offering. To the extent
that such factors can be foreseen, they have been factored into our analysis.
Pro forma market value is defined as the price at which RFS Bancorp's
stock, immediately upon completion of the offering, would change hands between a
willing buyer and a willing seller, neither being under any compulsion to buy or
sell and both having reasonable knowledge of relevant facts.
Valuation Conclusion
It is our opinion that, as of August 21, 1998, the estimated aggregate pro
forma market value of the shares to be issued immediately following the
offering, both shares issued publicly as well as to the MHC, was $9,500,000 at
the midpoint, equal to 950,000 shares issued at a per share value of $10.00.
Pursuant to conversion guidelines, the 15 percent offering range indicates a
minimum value of $8,075,000, and a maximum value of $10,925,000. Based on the
$10.00 per share offering price determined by the Boards, this valuation range
equates to an offering of 807,500 shares at the minimum to 1,092,500 shares at
the maximum. In the event that the appraised value is subject to an increase, up
to 1,256,375 shares may be issued at an issue price of $10.00 per share, for an
aggregate market value of $12,563,750, without a resolicitation. The Board of
Directors has established a public offering range such that the public ownership
of the Holding Company will constitute a 47 percent ownership interest of the
Holding Company, with the MHC owning the majority of the shares. Accordingly,
the offering range to the public of the minority stock will be $3,795,250 at the
minimum, $4,465,000 at the midpoint, $5,134,750 at the maximum and $5,904,960 at
the supermaximum.
Limiting Factors and Considerations
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of the
Common Stock. 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 offering will thereafter be able to buy or sell
such shares at prices related to the foregoing valuation of the pro forma market
value thereof.
RP Financial's valuation was determined based on the financial condition
and operations of the Bank as of June 30, 1998, the date of the financial data
included in the regulatory applications and prospectus.
RP Financial is not a seller of securities within the meaning of any
federal and state securities laws and any report prepared by RP Financial shall
not be used as an offer or solicitation with respect to the purchase or sale of
any securities. RP Financial maintains a policy which prohibits the company, its
principals or employees from purchasing stock of its client institutions.
RP Financial, LC.
Board of Directors
August 21, 1998
Page 4
The valuation will be updated as provided for in the conversion regulations
and guidelines. These updates will consider, among other things, any
developments or changes in the Bank's financial performance and condition,
management policies, and current conditions in the equity markets for thrift
shares. These updates may also consider changes in other external factors which
impact value including, but not limited to: various changes in the legislative
and regulatory environment, the stock market and the market for thrift stocks,
and interest rates. Should any such new developments or changes be material, in
our opinion, to the valuation of the shares, appropriate adjustments to the
estimated pro forma market value will be made. The reasons for any such
adjustments will be explained in the update at the date of the release of the
update.
Respectfully submitted,
RP FINANCIAL, LC.
/s/ William E. Pommerening
William E. Pommerening
Chief Executive Officer
/s/ James J. Oren
James J. Oren
Senior Vice President
RP Financial, LC.
TABLE OF CONTENTS
RFS BANCORP, INC.
REVERE FEDERAL SAVINGS
REVERE, MASSACHUSETTS
PAGE
DESCRIPTION NUMBER
CHAPTER ONE OVERVIEW AND FINANCIAL ANALYSIS
Introduction 1.1
Strategic Discussion 1.2
Balance Sheet Trends 1.4
Income and Expense Trends 1.8
Interest Rate Risk Management 1.10
Lending Activities and Strategy 1.11
Asset Quality 1.13
Funding Composition and Strategy 1.13
Subsidiary Operations 1.14
Legal Proceedings 1.14
CHAPTER TWO MARKET AREA
Introduction 2.1
National Economic Factors 2.2
Market Area Demographics 2.7
Economy 2.7
Deposit Trends and Competition 2.9
Summary 2.11
CHAPTER THREE PEER GROUP ANALYSIS
Peer Group Selection 3.1
Basis of Comparison 3.2
Selection of Peer Group 3.2
Financial Condition 3.6
Income and Expense Components 3.8
Loan Composition 3.11
Credit Risk 3.13
Interest Rate Risk 3.15
Summary 3.15
TABLE OF CONTENTS
RFS BANCORP, INC.
REVERE FEDERAL SAVINGS
REVERE, MASSACHUSETTS
(CONTINUED)
PAGE
DESCRIPTION NUMBER
CHAPTER FOUR VALUATION ANALYSIS
Introduction 4.1
Appraisal Guidelines 4.1
RP Financial Approach to the Valuation 4.1
Valuation Analysis 4.2
1. Financial Condition 4.2
2. Profitability, Growth and Viability of Earnings 4.3
3. Asset Growth 4.5
4. Primary Market Area 4.6
5. Dividends 4.6
6. Liquidity of the Shares 4.8
7. Marketing of the Issue 4.9
A. The Public Market 4.9
B. The New Issue Market 4.15
C. The Acquisition Market 4.19
8. Management 4.19
9. Effect of Government Regulation and Regulatory Reform 4.20
Summary of Adjustments 4.20
Basis of Valuation - Fully-Converted Pricing Ratios 4.20
Valuation Approaches 4.21
1. Price-to-Earnings ("P/E") 4.24
2. Price-to-Book ("P/B") 4.24
3. Price-to-Assets ("P/A") 4.26
Valuation Conclusion 4.26
RP Financial, LC.
LIST OF TABLES
RFS BANCORP, INC.
REVERE FEDERAL SAVINGS
REVERE, MASSACHUSETTS
TABLE
NUMBER DESCRIPTION PAGE
- ------ ----------- ----
1.1 Historical Balance Sheets 1.5
1.2 Historical Income Statements 1.9
2.1 Major Employers 2.8
2.2 Market Area Unemployment Trends 2.9
2.3 Deposit Summary 2.10
3.1 Peer Group of Publicly-Traded Thrifts 3.5
3.2 Balance Sheet Composition and Growth Rates 3.7
3.3 Income as a Percent of Average Assets and Yields, Costs, Spreads 3.9
3.4 Loan Portfolio Composition and Related Information 3.12
3.5 Credit Risk Measured and Related Information 3.14
3.6 Interest Rate Risk Measured and Net Interest Income Volatility 3.16
4.1 Peer Group Market Area Comparative Analysis 4.7
4.2 Recent Conversions Completed 4.16
4.3 Market Pricing Comparatives 4.18
4.4 Calculation of Implied Per Share Data -- Incorporating
MHC Second Step Conversion 4.22
4.5 MHC Institutions -- Implied Pricing Ratios, Full Conversion Basis 4.24
4.6 Pricing Table: MHC Comparables 4.28
RP Financial, LC.
Page 1.1
I. Overview and Financial Analysis
Revere Federal Savings and Loan Association ("Revere Federal" or the
"Bank") is a federally-chartered mutual savings institution operating from a
single office location in Revere, Suffolk County, Massachusetts. The Bank
considers its primary market for deposits to consist of the city of Revere, in
particular the areas surrounding the office location, and to a lesser extent the
rest of the northeastern Boston, Massachusetts metropolitan area. Lending
activities are also concentrated in the city of Revere, although additional
lending activities (in particular commercial lending), are performed in other
areas close to Revere (see ExhibityI-1). The Bank was chartered as a
Massachusetts mutual savings institution in 1901. The Bank is currently a member
of the Federal Home Loan Bank ("FHLB") system and is regulated by the Office of
Thrift Supervision (the "OTS"). The Bank's deposits are insured up to the
regulatory maximums by the Savings Association Insurance Fund ("SAIF") of the
Federal Deposit Insurance Corporation ("FDIC"). As of June 30, 1998, the Bank
maintained $88.8 million in assets, $63.0 million in deposits and $6.4 million
in equity, equal to 7.2 percent of assets.
The Bank's Board of Directors adopted a Plan of Reorganization pursuant to
which the Bank will reorganize into the federal mutual holding company form of
organization. As part of the reorganization, Revere Federal will become a
wholly-owned subsidiary of RFS Bancorp, Inc., a federal corporation, and RFS
Bancorp, Inc. (the "Holding Company") will issue a majority of its common stock
to Revere, MHC (the "MHC"), and sell a minority of its common stock to the
public. Concurrent with the Reorganization, the MHC will retain $100,000 for
initial capitalization, while the Holding Company will retain approximately 15
percent of the net conversion proceeds. Immediately after consummation of the
Reorganization, it is not anticipated that the MHC or the Holding Company will
engage in any business activity other than ownership of their respective
subsidiaries.
The assets and liabilities of the stock subsidiaries will be substantially
equivalent to those of Revere Federal prior to the Reorganization. The MHC will
own a controlling interest in the Holding Company of at least 51 percent, and
the Holding Company will be the sole subsidiary of the MHC. The Holding Company
will also own 100 percent of the Bank's outstanding stock.
RP Financial, LC.
Page 1.2
Strategic Discussion
The Bank is a community-oriented financial institution dedicated to meeting
the borrowing, savings and financial services needs of its market area served.
The market area served by the Bank (the city of Revere, and to a lesser extent,
areas in close proximity to Revere), has been experiencing relatively stable
levels of population and households in recent years. The economy and employment
base is relatively diversified into most economic sectors, including services
and education. Located within the Boston metropolitan statistical area ("MSA"),
Revere Federal faces notable competition from a number of other community
oriented banks and savings banks, as well as from larger regional financial
institutions. In this operating environment the Bank has pursued a strategy of
increasing the asset base and expanding the number of products and services
available to customers in order to more effectively compete.
Throughout its history, the Bank has generally pursued a traditional
operating strategy of mortgage lending secured by 1-4 family residential
properties in the city of Revere and nearby areas in northern Suffolk County,
Massachusetts, funded with retail deposits. During the early 1990s, Revere
Federal pursued a leveraging strategy, utilizing maturity-matched FHLB advances
to purchase investment securities and MBS in order to gain additional interest
income with little increase in operating expenses. Due to lower spreads inherent
in leveraging, and as that a leverage strategy does not result in a customer
base for other retail banking activities, more recently the Bank ceased this
strategy, opting to concentrate on supplementing residential originations with
increased commercial real estate loans and commercial and industrial loans. The
Bank has thus recorded loan growth in recent periods, reflecting greater
marketing activities, competitive pricing and the more diversified lending
approach, primarily in the area of commercial real estate and commercial and
industrial loans. Such loan growth has been facilitated through hiring
experienced commercial loan officers, developing a more customer-oriented
approach and developing business relations with real estate brokers and
businesses. The recent increase in loans receivable has been funded internally
through a reduction in cash and investments and externally through deposit
growth and continued use of FHLB advances. The Bank sells a portion of the 1-4
family loan originations for interest rate risk management purposes. The Bank
expects the majority of its loan activity in the future to be within the Boston
metropolitan area, primarily north of the city of Boston.
The Bank's emphasis on originating 1-4 family permanent mortgage loans in
local and familiar markets and strong underwriting criteria on loans originated
has resulted in historically strong credit quality measures. The Bank's
allowance for loan losses relative to loans is also comparatively higher by
industry standards, as the Bank has added to the allowance recently, primarily
in view of the recent rapid loan portfolio growth (the portfolio has grown 120
percent since September 30, 1995) and an increased proportion of higher risk
weight loans (an increase from 4 to 27 percent of the loan portfolio since
September 30, 1995 while total loans grew by 120 percent). The ratio of
non-performing assets ("NPAs"), consisting of real estate owned and other
repossessed
RP Financial, LC.
Page 1.3
assets, non-accruing loans, delinquent accruing loans and restructured loans to
assets has remained relatively low since fiscal 1993, and was 0.30 percent of
assets as of June 30, 1998.
The Bank's lending strategies to limit exposure to interest rate risk have
involved originating adjustable rate residential mortgage loans ("ARMs")
whenever feasible, adjustable rate commercial real estate loans and shorter-term
construction, commercial business and consumer loans. Liability strategies have
involved attempts to lengthen the maturity of deposits, and FHLB advances
utilized in recent periods to meet funds demands have been in general
maturity-matched or longer term advances. Revere Federal's one-year cumulative
gap position as of June 30, 1998 as calculated by the OTS was a negative 12
percent. Revere Federal anticipates the conversion proceeds will facilitate
improvement in the gap analysis as the net capital raised in the conversion will
increase the ratio of interest-earning assets ("IEA") to interest-bearing
liabilities ("IBL") and the proceeds will increase the proportion of
shorter-term or adjustable rate assets.
The Bank's main source of net income, the net interest margin, has remained
relatively stable over the past few years, with overall net interest income
increasing in step with the growth in assets. Core profitability has been
primarily affected by an increasing level of operating expenses that have been
incurred in connection with the Bank's growth in operations. The growth of the
commercial lending department since 1996 has increased personnel and other
expenses. Further improvement in core profitability has also been limited by
competitive pricing of deposits to stimulate growth. Future core profitability
is projected to improve with the reinvestment benefit of the new capital raised,
income benefits of recently expanded products and services and growth in assets
without a commensurate increase in operating expenses.
Revere Federal's Board of Directors has determined that a conversion to
mutual holding company form is an attractive business strategy for several
reasons. First, the new structure will provide the ability to diversify business
activities, provide greater flexibility in structuring acquisitions and increase
the future access to capital markets. Second, it will provide the capital
necessary to improve the overall competitive position of the Bank in its market
area, with regard to rates and services offered and ability to expand. Third,
the conversion may provide the opportunity for expanded local stock ownership
which could enhance the financial success of the Bank as local shareholders
promote the Bank's products and services. As disclosed in the prospectus, the
proceeds from stock conversion are anticipated to be invested as follows.
o Revere, MHC. The Bank intends to capitalize the MHC with $100,000 of
cash. The primary activity of the MHC will be ownership of the
majority interest in the Bank. Such cash is anticipated to be invested
in low risk investments.
RP Financial, LC.
Page 1.4
o RFS Bancorp. Approximately 15 percent of the conversion proceeds will
be retained by RFS Bancorp, with the balance to be invested in the
Bank. Such holding company funds are anticipated to be invested
initially into high-quality short- to intermediate-term securities and
a loan to the Bank's ESOP to fund stock purchases in the conversion.
The Holding Company funds will be utilized for various corporate
purposes, including funding expansion through diversification or
acquisition, stock repurchase programs, funding stock purchases for
the MRP and/or payment of regular or special dividends, although there
are no specific plans at present.
o Revere. The net proceeds infused into the Bank will be exchanged for
all of the Bank's newly issued stock. The Bank's proceeds are
anticipated to initially be held in short-term cash and investments
until such funds are redeployed into lending and investment activities
consistent with the Bank's plan.
On a pro forma basis, Revere Federal is expected to have a capital ratio
above both regulatory requirements and industry averages. The Board of Directors
has determined to pursue a strategy of controlled growth in order to maintain
well-capitalized status, with growth expected to be funded primarily through
local retail deposit growth and continue use of borrowings.
Balance Sheet Trends
Table 1.1 shows key balance sheet items at the close of the last five
fiscal years and as of June 30, 1998. Revere Federal's audited financial
statements are incorporated by reference as Exhibit I-2, while historical key
operating ratios are presented in Exhibit I-3. From September 30, 1993 through
June 30, 1998, Revere Federal exhibited annual asset growth of 12.4 percent,
with the asset growth channelled primarily into increases in loans receivable. A
majority of the loan growth occurred subsequent to September 30, 1995, when the
previous leverage strategy was discontinued and the commercial real estate and
commercial lending departments were established and staffed. The Bank began
investing in mortgage-backed securities ("MBS") and certain investment
securities in the early 1990s as part of the leveraging strategy, however the
balance of such assets has fallen as a percent of the asset base since 1995,
with funds utilized in the lending operations. Revere Federal's annual deposit
growth totaled 12.1 percent, as the Bank has attracted new funds through a
combination of additional advertising and competitive rate offerings.
Borrowings, consisting of FHLB advances, have been used as a supplemental
funding source throughout the time period shown in Table 1.1 to support the
leveraging strategy and lending operations.
The balance of loans receivable increased consistently since fiscal 1994,
although the balance increased at an annual rate of 33 percent since September
30, 1995. Since that time, the Bank has been successful in expanding its
residential loan origination efforts in the local market, and has increased the
level of commercial real estate and commercial business loans. At June 30, 1998,
loans receivable totaled $46.8 million, or 52.7 percent of total assets. The
composition of the loan portfolio reflects the more recent diversified lending
strategy, as 1-4 family permanent loans constituted $34.5 million, or 72.8
percent of the gross loan portfolio at
RP Financial, LC.
Table 1.1
Revere Federal Savings and Loan Association
Historical Balance Sheets
(Amount and Percent of Assets)
As of September 30,
--------------------------------------------------------------------------------------------
1993 1994 1995 1996
--------------------- --------------------- --------------------- ----------------------
Amount Pct Amount Pct Amount Pct Amount Pct
------ --- ------ --- ------ --- ------ ---
($000) (%) ($000) (%) ($000) (%) ($000) (%)
Total Amount of:
Assets $50,953 100.00% $59,910 100.00% $67,732 100.00% $77,898 100.00%
Cash and Investments 13,309 26.12% 16,754 27.97% 21,886 32.31% 18,371 23.58%
Loans Receivable (net) 22,158 43.49% 20,579 34.35% 21,273 31.41% 33,046 42.42%
Mortgage-Backed Securities (net) 14,258 27.98% 21,183 35.36% 23,085 34.08% 24,945 32.02%
Deposits 36,633 71.90% 41,108 68.62% 48,232 71.21% 49,393 63.41%
Borrowed Funds 10,000 19.63% 13,482 22.50% 13,818 20.40% 22,712 29.16%
Stockholders' Equity 4,093 8.03% 4,819 8.04% 5,090 7.51% 5,447 6.99%
AFS Adjustment -- -- 251 0.42% 167 0.25% 243 0.31%
Loans/Deposits 60.49% 50.06% 44.11% 66.90%
12/31/93-
As of September 30, 6/30/98
------------------------ As of June 30, Annual
1997 1998 Growth Rate
------------------------ -------------------- --------------
Amount Pct Amount Pct Pct
------ --- ------ ---
($000) (%) ($000) (%) (%)
Total Amount of:
Assets $86,920 100.00% $88,780 100.00% 12.40%
Cash and Investments 18,883 21.72% 18,526 20.87% 7.21%
Loans Receivable (net) 41,175 47.37% 46,825 52.74% 17.06%
Mortgage-Backed Securities (net) 25,144 28.93% 21,635 24.37% 9.18%
Deposits 55,452 63.80% 62,976 70.93% 12.08%
Borrowed Funds 25,104 28.88% 19,284 21.72% 14.83%
Stockholders' Equity 6,039 6.95% 6,374 7.18% 9.77%
AFS Adjustment 358 0.41% 486 0.55% N/M
Loans/Deposits 74.25% 74.35%
Source: Prospectus, audited financial reports and RP Financial calculations
RP Financial, LC.
Page 1.6
June 30, 1998, a decline from 95.9 percent of the loan portfolio as of September
30, 1995. At the same date, construction/land loans totaled $1.5 million, or 3.2
percent of the loan portfolio. The largest expansion in the loan portfolio has
occurred in commercial real estate and commercial business loans, which totaled
$6.9 million, or 14.7ypercent of the loan portfolio, as Revere Federal has
targeted smaller commercial businesses in the market area for lending
opportunities. These loans are attractive for their higher yields,
shorter-terms, and higher average balances which require less personnel for
monitoring and servicing. Consumer loans totaled $4.4 million, or 9.4 percent of
loans receivable, including $3.3 million of real estate related home equity
loans. The Bank's commercial real estate and commercial business loans have been
originated primarily with local businesses in the area north of the city of
Boston.
The portfolio of cash and investment securities totaled $18.5 million, or
20.9 percent of assets, at June 30, 1998 (see Exhibit I-4). The cash and
investments portfolio consisted of cash and equivalents, including
interest-earning deposits in the FHLB of Boston ($4.5 million), U.S. Government
Agency securities ($6.5 million), FHLB stock ($1.5 million), SBA Securities
($5.1 million) and equity securities ($0.9 million). Prior to fiscal 1996, the
Bank purchased various investment securities funded in part with FHLB advances
as part of a leveraging strategy and classified such investments as
"Held-to-Maturity". The balance of cash and investments has remained relatively
stable since fiscal 1996 as the investments have not reached maturity and the
Bank has opted to invest newly generated funds into whole loans receivable.
Revere Federal also utilizes the portfolio of cash and investments for liquidity
purposes as part of the asset-liability management strategy. The Bank classifies
the equity securities, consisting of FHLMC and FNMA stock, as
"available-for-sale", and as of June 30, 1998, an unrealized pretax gain of
$826,000 was tax adjusted and added to stated equity on the Bank's audited
financial statements. A majority of the investment securities are held in an
investment subsidiary of the Bank, which is exempt from a substantial portion of
the state income tax burden. Going forward, the Bank intends to continue to
purchase generally low risk investments and the composition of the cash and
investments portfolio is not anticipated to change significantly, although the
level will initially increase on a post-conversion basis. Going forward, the
Bank intends to continue a focus on investment into whole loans, although
investment securities may be purchased with available funds.
MBS totaled $21.6 million at June 30, 1998, the second largest component of
interest-earning assets. The balance of MBS has declined since fiscal 1996, as
the Bank has opted to invest available funds into whole loans receivable. The
MBS portfolio consists of GNMA, FNMA and FHLMC pass-through certificates, which
carry both fixed and adjustable rate terms. Similar to the investment securities
portfolio, a majority of the MBS are held in a Bank subsidiary that is exempt
from state income taxes, providing higher effective yields to the Bank on a
consolidated basis. At the time of purchase, the fixed rate MBS were generally
maturity-matched with longer-term FHLB Advances. The entire MBS portfolio was
classified as "held-to-maturity" ("HTM") at June
RP Financial, LC.
Page 1.7
30, 1998, and is carried on the balance sheet at historical cost. There was an
unrealized pre-tax gain of $381,000 as of June 30, 1998 in the MBS portfolio.
The Bank utilizes a portion of its MBS portfolio to satisfy regulatory liquidity
requirements, preferring to maintain such funds in MBS instead of lower yielding
cash and investments. Going forward, the Bank intends to limit reinvestment of
MBS, preferring to invest available funds into whole loans receivable.
As noted previously, deposits have traditionally met the majority of the
Bank's funding needs, and all of the Bank's deposits are generated through its
single office location. In the last several years, the Bank achieved growth in
deposits by attempting to be more visible in the local market area through
advertising and other marketing efforts and by offering competitive rates. This
strategy facilitated relatively strong deposit growth. Currently, savings rates
offered by Revere Federal are generally in line with the local competition, with
certificates of deposits ("CDs") accounting for the majority of total deposits.
The Bank has a portfolio of core deposits totaling approximately 40 percent of
deposits, providing a base of stable lower costing deposits for operations.
As stated previously, borrowings have also been used by the Bank for the
purpose of funding certain investment security purchases and, more recently,
loan originations. Since fiscal 1993, FHLB advances have ranged from a low of
$10.0 million at September 30, 1993 to $25.1 million as of September 30, 1997.
The Bank considers using borrowings based on funding needs and a comparison of
the cost of borrowings versus the cost of raising additional deposits. The
balance of borrowed funds declined by $5.8 million, or 23.2 percent over the
nine months ended June 30, 1998 as borrowings matured and were paid off with
available liquidity. During fiscal 1997, the Bank borrowed approximately. Going
forward, the Bank intends to continue using borrowings to support operations,
although deposits are expected to continue to comprise the majority of funding
liabilities.
Positive earnings from fiscal 1993 to June 30, 1998 and a positive
adjustment for FAS 122 resulted in an increase in the Bank's capital ratio to
$6.4 million, or 7.2 percent of assets, as of June 30, 1998. The Bank's capital
ratio declined from a high of 8.0 percent as of June 30, 1994, due to the
expansion of the asset base. Revere Federal is currently in compliance with
respect to all of its fully phased-in capital requirements. The addition of
conversion proceeds will enhance the Bank's capital position and strengthen
Revere Federal's competitive posture within its market area.
RP Financial, LC.
Page 1.8
Income and Expense Trends
Table 1.2 displays the Bank's earnings over the past five fiscal years and
for the twelve months ended June 30, 1998 and reveals that earnings for those
periods have fluctuated between 0.13 and 0.89 percent of average assets, and
totaled 0.36 percent for the most recent twelve month period, a decrease from
the level in fiscal 1997. The more recent lower earnings, notwithstanding higher
levels of net interest income, have been attributable to higher operating
expenses incurred in connection with establishment and growth of the commercial
real estate and commercial lending department. The reinvestment of offering
proceeds is expected to improve net income in future periods.
Exhibit I-5 highlights the changes in the Bank's asset yields and cost of
funds over the most recent periods and as of June 30, 1998, which have
influenced the level of net interest income. Spreads widened by 15 basis points
between fiscal 1996 and the nine months ended June 30, 1998, as the higher
balances of higher yielding commercial real estate and commercial business
loans, along with increased investment in residential loans increased the Bank's
asset yields by 40 basis points, while the cost of funds declined by 4 basis
points. These trends indicate that the Bank has been successful improving the
net interest margin. Despite balance sheet repositioning, however, the Bank's
net interest income is still influenced by changes in interest rates.
Revere Federal has historically derived only moderate levels of income from
non-interest sources, which has provided some protection from changes in the net
interest margin due to interest rate fluctuations. For the most recent twelve
month period, non-interest operating income totaled $152,000, or 0.17 percent of
average assets, an 0.08 percent of average assets improvement from fiscal 1995.
A majority of this income results from the Bank's deposit base in the form of
various fees and charges on deposit accounts and transactions. A smaller portion
of this income is obtained from other miscellaneous retail banking sources.
Going forward, the Bank anticipates that non-interest income will remain
primarily related to the deposit base, although other income sources may be
developed.
Revere Federal's operating expenses have increased in the time period shown
in Table 1.2 due to the growth in the asset base and related operations,
including the establishment of the commercial real estate and commercial
business loan departments in 1996. Despite the strong asset growth and
utilization of FHLB advances to partially fund such growth, the operating
expense ratio has increased to a higher level as a percent of average assets.
The Bank's operating expenses are expected to initially increase following the
conversion as a result of the following items. The ESOP and RRP purchases in the
offering and in the year following conversion, respectively, will increase
annual expenses. In addition, as a full stock institution, the Bank will incur
additional legal, accounting, printing/mailing and related costs.
RP Financial, LC.
Table 1.2
Revere Federal Savings and Loan Association
Historical Income Statements
For the Year Ended September 30,
-------------------------------------------------------------------------
1993 1994 1995
----------------------- ----------------------- -----------------------
Amount Pct(1) Amount Pct(1) Amount Pct(1)
------ ------ ------ ------ ------ ------
($000) (%) ($000) (%) ($000) (%)
Interest Income $ 3,267 7.67% $ 3,733 6.90% $ 4,447 7.06%
Interest Expense (1,311) -3.08% (1,653) -3.06% (2,454) -3.90%
------- ----- ------- ----- ------- -----
Net Interest Income $ 1,956 4.59% $ 2,080 3.85% $ 1,993 3.17%
Provision for Loan Losses (155) -0.36% (144) -0.27% 2 0.00%
------- ----- ------- ----- ------- -----
Net Interest Income after Provisions $ 1,801 4.23% $ 1,936 3.58% $ 1,995 3.17%
Other Operating Income $ 44 0.10% $ 35 0.06% $ 53 0.08%
Operating Expense (1,190) -2.79% (1,261) -2.33% (1,530) -2.43%
------- ----- ------- ----- ------- -----
Net Operating Income $ 655 1.54% $ 710 1.31% $ 518 0.82%
Gain(Loss) on Sale of Assets $ 0 0.00% $ 7 0.01% $ 295 0.47%
SAIF Assessment 0 0.00% 0 0.00% $ 0 0.00%
------- ----- ------- ----- ------- -----
Net Non-Operating Income(Exp) $ 0 0.00% $ 7 0.01% $ 295 0.47%
Net Income Before Tax $ 655 1.54% $ 717 1.33% $ 812 1.29%
Income Taxes (276) -0.65% (241) -0.45% (271) -0.43%
------- ----- ------- ----- ------- -----
Net Inc(Loss) Before Extraordinary Items $ 379 0.89% $ 476 0.88% $ 541 0.86%
Cumulative Effect of Change in
Accounting For Income Taxes $ 0 0.00% $ 0 0.00% $ 0 0.00%
------- ----- ------- ----- ------- -----
Net Income (Loss) $ 379 0.89% $ 476 0.88% $ 541 0.86%
Adjusted Earnings
Net Operating Income $ 655 1.54% $ 710 1.31% $ 518 0.82%
Tax Effect (2) (276) -0.65% (239) -0.44% (173) -0.27%
------- ----- ------- ----- ------- -----
Adjusted Earnings $ 379 0.89% $ 471 0.87% $ 345 0.55%
Memo:
Efficiency Ratio 59.50% 59.62% 74.79%
Effective Tax Rate 42.14% 33.61% 33.37%
For the Year Ended September 30,
---------------------------------------------- 12 Months Ended
1996 1997 June 30, 1998
---------------------- ---------------------- ----------------------
Amount Pct(1) Amount Pct(1) Amount Pct(1)
------ ------ ------ ------ ------ ------
($000) (%) ($000) (%) ($000) (%)
Interest Income $ 5,110 7.04% $ 6,180 7.26% $ 6,620 7.54%
Interest Expense (3,018) -4.16% (3,585) -4.21% (3,681) -4.19%
------- ----- ------- ----- ------- -----
Net Interest Income $ 2,093 2.88% $ 2,595 3.05% $ 2,939 3.35%
Provision for Loan Losses (149) -0.20% (60) -0.07% (190) -0.22%
------- ----- ------- ----- ------- -----
Net Interest Income after Provisions $ 1,944 2.68% $ 2,535 2.98% $ 2,749 3.13%
Other Operating Income $ 67 0.09% $ 116 0.14% $ 152 0.17%
Operating Expense (1,601) -2.21% (1,888) -2.22% (2,380) -2.71%
------- ----- ------- ----- ------- -----
Net Operating Income $ 409 0.56% $ 764 0.90% $ 522 0.59%
Gain(Loss) on Sale of Assets $ 0 0.00% $ 0 0.00% $ 0 0.00%
SAIF Assessment (289) -0.40% 0 0.00% 0 0.00%
------- ----- ------- ----- ------- -----
Net Non-Operating Income(Exp) ($ 289) -0.40% $ 0 0.00% $ 0 0.00%
Net Income Before Tax $ 120 0.17% $ 764 0.90% $ 522 0.59%
Income Taxes (26) -0.04% (287) -0.34% (204) -0.23%
------- ----- ------- ----- ------- -----
Net Inc(Loss) Before Extraordinary Items $ 94 0.13% $ 476 0.56% $ 317 0.36%
Cumulative Effect of Change in
Accounting For Income Taxes 0 0.00% 0 0.00% 0 0.00%
------- ----- ------- ----- ------- -----
Net Income (Loss) $ 94 0.13% $ 476 0.56% $ 317 0.36%
Adjusted Earnings
Net Operating Income $ 409 0.56% $ 764 0.90% $ 522 0.59%
Tax Effect (2) (87) -0.12% (287) -0.34% (204) -0.23%
------- ----- ------- ----- ------- -----
Adjusted Earnings $ 322 0.44% $ 476 0.56% $ 317 0.36%
Memo:
Efficiency Ratio 74.17% 69.62% 76.98%
Effective Tax Rate 21.32% 37.61% 39.15%
(1) Ratios are as a percent of average assets.
(2) Based on effective tax rate for each year.
Source: Prospecus, audited financial reports and RP Financial calculations.
RP Financial, LC.
Page 1.10
Provisions for loan losses have generally had a small impact on earnings in
recent years, although such provisions increased to $190,000, or 0.22 percent of
assets during the twelve months ended June 30, 1998, as Revere Federal added to
the allowance for loan losses in recognition of the growth in higher risk loans
such as commercial real estate and commercial business loans and the overall
growth in the loan portfolio. The Bank is budgeting provisions of $25,000 per
quarter in the future in order to increase the allowance for loan losses ("ALL")
ratio as a percent of loans receivable. As of June 30, 1998 the ALL balance was
equal to $506,000, or 1.07 percent of net loans receivable and 188 percent of
non-performing loans, as compared to $206,000, or 0.97 percent of net loans and
165 percent of non-performing loans at fiscal year end 1995 (see Exhibit I-6).
Since Revere Federal has historically classified the investment portfolio
as HTM, non-operating gains and losses have been limited since fiscal 1993.
During fiscal 1995, Revere Federal sold a portion of the investment in FHLMC
stock and recognized a pre-tax gain of $295,000, which was offset during fiscal
1996 by the required SAIF-assessment fee, which totaled $289,000. Other than a
small gain on the sale of a real estate owned property in fiscal 1994, there
have been no other gains or losses recorded by the Bank since fiscal 1993.
Revere Federal has incurred a tax liability in recent periods, including an
effective tax rate of 39 percent for the twelve months ended June 30, 1998. As
discussed previously, a substantial portion of the Bank's investment portfolio
is held in a subsidiary corporation which is subject to a significantly lower
state income tax rate, effectively lowering the Bank's overall tax rate.
Interest Rate Risk Management
Revere Federal attempts to manage exposure to interest rate fluctuations on
both the asset and liability side of the balance sheet, and has attempted to
enhance the interest sensitivity of its operations through several means,
including: (1)yincreasing the portfolio of ARMs held in the loan portfolio (both
residential and commercial real estate-related); (2)yholding short-term
investment securities, including adjustable rate MBS and SBA securities; (3)
increasing the balance of short-term to maturity commercial business loans and
consumer loans, including home equity loans; (4) extending whenever possible the
term to maturity of the certificate of deposit base; and, (5) increasing the
proportion of transaction accounts in the deposit base which are considered to
be less interest rate sensitive funds. Exhibit I-7 displays the distribution of
the Bank's fixed and adjustable rate loans.
Revere Federal monitors its exposure to interest rate risk using the OTS
calculation of the net portfolio value position for the Bank. As shown in
Exhibit I-8, according to the most recent calculation, the Bank's NPV under a
200 basis point increase in interest rates was a negative 12 percent, indicating
a level of interest rate risk. Although this measure is within the
Board-established limits of the Bank, Revere Federal is seeking to reduce
RP Financial, LC.
Page 1.11
exposure to interest rate risk, and the reinvestment of conversion proceeds is
expected to contribute to reduced exposure.
Lending Activities and Strategy
The Bank's historical lending activities emphasize the origination of 1-4
family mortgage loans (see Exhibits I-9 and I-10, loan composition and
maturity). In recent periods, Revere Federal has also concentrated on loan
portfolio diversification by building portfolios of commercial real estate
loans, commercial business loans and non-mortgage loans in an effort to enhance
overall portfolio yields and expand the Bank's products and services offered.
Underscoring the change in portfolio composition, while gross loans increased
from $21.5 million at September 30, 1995 to $47.4 million at June 30, 1998, the
proportion of 1-4 family loans dropped from 95.9 percent of loans to 72.8
percent. The Bank's credit risk profile has increased over that time period
through limited seasoning on a large portion of the loan portfolio (primarily
the commercial real estate and commercial business portfolio), and increased
concentration of higher risk weight loans.
As of June 30, 1998, residential mortgage loans secured by 1-4 family
properties totaled $34.5 million, or 72.8 percent of total loans receivable. The
Bank originates both ARMs and fixed-rate residential mortgages (with
originations dependent upon customer preferences) with essentially all loans
underwritten to Federal National Mortgage Association ("FNMA") guidelines.
Residential loans made by the Bank are generally originated with maximum
loan-to-value ("LTV") ratios of 100 percent, with loans with LTV ratios in
excess of 80ypercent requiring private mortgage insurance ("PMI") coverage.
Fixed-rate mortgages are offered with maturities of up to 30 years, with a
portion of fixed rate residential loans sold in the secondary market (primarily
to the FNMA), and loans with shorter terms held in portfolio.
Approximately 21 percent of the Bank's 1-4 family residential mortgages
consisted of ARMs at June 30, 1998, which are retained for portfolio as part of
asset/liability management strategy. Revere Federal offers ARMs with one-,
three-, five- or seven-year adjustment periods that are indexed to the weekly
average rate on the corresponding U.S. Treasury securities, adjusted to a
constant maturity. The majority of ARMs are originated with annual adjustment
caps of 2.0 percent, lifetime adjustment caps of up to 6.0 percentage points,
and are not generally originated at discounted rates.
Revere Federal has recently increased the level of originations of
commercial real estate loans in order to diversify the loan portfolio and
increase overall asset yields. As of June 30, 1998, commercial real estate loans
totaled $4.2 million, or 8.8 percent of loans receivable. The Bank's commercial
real estate portfolio consists primarily of loans secured by the buildings and
real estate in which various small businesses conduct their operations, such as
small business operations, small office buildings, warehouses and office condos.
RP Financial, LC.
Page 1.12
Commercial real estate loans originated by Revere Federal are predominantly
adjustable rate loans that generally have terms of up to 20 years, and are
indexed to the prime rate of interest or the U.S. Treasury rate of a similar
term as the adjustment period, which can extent up to a five year period. LTVs
on income property loans typically do not exceed 75 percent. The Bank seeks to
manage credit risk on such loans by lending primarily on local property, to
borrowers with whom management is familiar, and obtaining personal guarantees. A
portion of the commercial real estate loan portfolio consists of loans with
borrowers with whom the Bank's commercial loan officers have had prior business
relationships.
Commercial business loans also represent an area of recent loan portfolio
diversification, as Revere Federal strives to provide all financing needs for a
business customer (i.e. real estate loans and working capital or operating
loans). Since starting the commercial business loan department in 1995,
following the hiring of an experienced commercial loan officer, the Bank's
commercial business loans have grown from $0.2 million to $1.5 million as of
June 30, 1998. These loans are primarily made to local small businesses in the
area north of the city of Boston, and are attractive due to the higher yields
and shorter durations. The Bank has been able to increase the portfolio of such
loans due to personal contacts by Bank employees in the local communities.
Commercial business loans usually carry a floating rate indexed to the prime
rate, generally have a five year term, and are secured by assets such as
commercial real estate, inventory, equipment or other assets and guaranteed by
the principals. Revere Federal has also attempted to gain a deposit relationship
with the commercial business borrowers; this practice has helped build the
deposit base recently.
Construction loans totaled $1.5 million, or 3.2 percent of loans
receivable, at June 30, 1998, primarily for residential property. Most of the
construction loans are underwritten as construction/permanent loans to the
future occupants, structured to become permanent loans upon completion of the
construction. Construction loans are structured as interest-only during the
construction period, which generally equals six months. Construction/permanent
loans have maximum LTV ratios equal to the requirements of the permanent loans.
Revere Federal also offers consumer loans, including home equity loans,
which totaled $4.4 million, or 9.4 percent of gross loans receivable, at June
30, 1998. The Bank offers a variety of types of consumer loans, including loans
secured by deposit accounts, automobile and secured and unsecured personal
loans. Consumer loans are generally offered for terms of up to five years at
fixed interest rates, and Revere Federal will lend up to 90 percent of the
depositor's savings account balance, and up to 80 percent of the value of an
automobile. Home equity loans (actually lines of credit) represent an area of
growth for Revere Federal in recent years, and usually consist of equity loans
for up to 80 percent of the appraised value of a home, less the amount of the
first mortgage. Home equity loans are offered at adjustable rates of interest,
with the adjustable rate based on the prime rate of interest minus one half of
one percent in the first year and the prime rate for the remaining life of the
loan.
RP Financial, LC.
Page 1.13
As shown in Exhibit I-11, Revere Federal's overall loan origination volume
increased from $10.8 million in 1995 to $44.7 million for the most recent twelve
months. The table highlights the Bank's increased emphasis on commercial real
estate and commercial business lending, with originations increasing from $0.4
million, or 4.1 percent, of loan originations in fiscal 1995 to $15.3 million,
or 34.3 percent of loan originations for fiscal 1997. Revere Federal has not
historically purchased loans, and has sold loans in the secondary market,
primarily to FNMA.
Asset Quality
Exhibit I-12 displays Revere Federal's NPAs from fiscal 1993 to June 30,
1998, and shows that the level of NPAs has remained relatively low over that
time period, ranging from 0.92 to 0.08 percent of total loans. The Bank had no
real estate owned ("REO") at June 30, 1998. As of June 30, 1998, the ratio of
NPAs to assets equaled 0.30 percent of assets, in comparison to 0.18 percent of
assets at fiscal year end 1995. At June 30, 1998, NPAs totaled $269,000 and
consisted of residential real estate, commercial and consumer loans on
non-accrual status or accruing and greater than 90 days delinquent. As of the
same date, the Bank maintained valuation allowances of $506,000, equal to 1.08
percent of loans receivable and 188 percent of NPAs. Revere Federal had
classified assets of $182,000 at June 30, 1998, all of which were classified as
substandard or special mention (see Exhibit I-13).
Funding Composition and Strategy
Exhibit I-14 provides data pertaining to Revere Federal's deposit
composition at fiscal year ends 1995 through June 30, 1998, utilizing average
balances. Revere Federal's deposits consist of CD accounts, which averaged $35.4
million, or 60 percent of total deposits, and a base of core deposits (passbook
accounts, NOW accounts, non-interest checking accounts, and MMDAs) which totaled
$23.2 million, or 40 percent of total deposits over that time period. Passbook
accounts were the largest component of core deposits and averaged $15.0 million,
or 25.6 percent of total deposits, for the nine months ended June 30, 1998,
followed by NOW accounts averaging $4.2 million, and demand accounts averaging
$2.4 million. Going forward, the Bank intends to try to increase the deposit
base to fund anticipated increases in lending operations.
CDs accounted for approximately 60.4 percent of Revere Federal's deposit
base over the nine months ended June 30, 1998. Approximately 75 percent of the
CD portfolio was scheduled to mature in one year or less. Jumbo CDs, which tend
to be more rate sensitive than lower balance CDs, accounted for $9.6 million, or
15.3 percent of deposits, at June 30, 1998. The level of jumbo CDs in the Bank's
CD portfolio is significant in that
RP Financial, LC.
Page 1.14
jumbo CDs tend to be more rate sensitive than smaller denomination CDs,
increasing the Bank's interest rate risk to a degree.
Due to recent lending activity and the need for liquidity, the Bank has
utilized borrowings from the FHLB of Boston. These advances are secured by the
Bank's stock in the FHLB and a portion of Revere Federal's mortgage loans, and
are generally maturity-matched with certain investment securities and MBS, along
with providing funding for a portion of the lending operations. As of June 30,
1998, the Bank had FHLB advances of $19.3 million outstanding.
Subsidiary Operations
The Bank currently has one subsidiary operation. In 1993, the Bank formed
RFS Investment Corporation, a Massachusetts securities corporation to hold
investment securities. As of June 30, 1998, this subsidiary held approximately
$24.5 million of marketable equity securities and cash. Income from RFS
Investments is eligible for certain favorable state tax treatment pursuant to
state tax laws, and Revere Federal intends to continue to use this investment
vehicle in the future as part of the investment strategy. As of June 1998 the
entire balance was classified as HTM.
Legal Proceedings
Other than the routine legal proceedings that occur in the Bank's ordinary
course of business, the Bank is not involved in litigation which is expected to
have a material impact on the Bank's financial condition or operations.
RP Financial, LC.
Page 2.1
II. MARKET AREA
Introduction
Revere Federal conducts operations out of a headquarters office in Revere,
Suffolk County, Massachusetts. Exhibit I-1 details the location of the Bank's
office, while Exhibit II-1 details the general characteristics of the Bank's
office. Suffolk County, located in eastern Massachusetts, consists primarily of
the city of Boston and includes several smaller cities to the north and east of
the city of Boston. Suffolk County is part of the
Boston-Worcester-Lawrence-Lowell-Brockton metropolitan statistical area ("MSA").
The city of Revere, containing approximately 39,000 residents, is located in the
northeastern suburbs of Boston, bounded by the towns of Saugus, Malden, Everett,
Chelsea, Lynn and Boston. As an older, inner suburb, Revere consists mostly of
developed properties within a network of neighborhoods. The city of Revere
represents the primary market area for deposit and loan generation as most of
the Bank's depositors and loan customers live in the areas surrounding the
office location. To a lesser extent, the Bank also originates loans in the
neighboring cities contiguous to Revere. The city of Chelsea, to the south of
Revere, represents an area with opportunities for Revere Federal, due to the
proximity of Chelsea to Logan International Airport and related commercial
enterprises that support or are related to airport operations.
The local Revere market area (zip code 02151), is home to a primarily
residential area with a smaller portion of businesses and commercial
enterprises. A majority of the residential neighborhoods were developed a number
of years ago, resulting in relatively aged housing stock. Given the residential
nature of Revere, a portion of Revere residents work in other cities within the
MSA, including Boston, 8 miles to the south. The areas encompassed by zip code
02151 have reported declining levels of population and households in recent
years, with the area experiencing a level of out-migration to outer suburbs,
where housing and land is less expensive and newer. Income levels in Revere are
generally in line with the averages for Suffolk County.
Competition from other financial institutions operating in the Revere area
includes a number of both large and small commercial banks and one savings
institution. The Bank maintains a market share of approximately 14 percent of
overall financial institution deposits in zip code 02151. The other financial
institutions are both locally-owned community-oriented and subsidiaries of
larger regional institutions. The Bank has experienced growth in deposits in
recent years primarily due to an increase in the number and types of products
and services offered, and an increased emphasis on marketing. However,
competition remains high in the marketplace.
RP Financial, LC.
Page 2.2
Future business and growth opportunities will be partially influenced by
economic and demographic characteristics of the market served, particularly the
future growth and stability of the regional economy, demographic growth trends,
and the nature and intensity of the competitive environment for financial
institutions. These factors have been briefly examined in the following pages to
help determine the growth potential that exists, the relative economic health of
the market area and the relative impact on value.
National Economic Factors
Over the past year, national economic growth has been mixed. Economic data
released in August 1997 provided mixed signals of economic growth, as a decline
in the July unemployment rate and an unexpectedly sharp decline in the U.S.
trade deficit provided indications of a strengthening economy. At the same time,
a modest increase in the July consumer price index and a decline in July
wholesale prices suggested that inflation remained non-threatening. At the end
of August, the second quarter GDP was revised upward to a 3.6 percent annual
growth rate compared to a 2.2 percent original estimate. In early-September, a
slight increase in the August unemployment rate did little to alleviate
inflation concerns, as the employment data indicated that the job market
remained tight and wages continued to rise. Comparatively, only a slight
increase in the August consumer price index provided evidence that inflation
remained tame at the end of the third quarter. September unemployment data
served to further calm inflation fears in early-October, as the unemployment
rate was unchanged at 4.9 percent and fewer jobs than expected were added to the
economy.
At the beginning of the fourth quarter of 1997, inflation concerns became
more notable following congressional testimony by the Federal Reserve Chairman,
as he indicated that it would be difficult for the U.S. economy to maintain the
current balance between tight labor markets and low inflation. However, economic
data released in October and November provided mixed signals on the strength of
the economy. For example, a decline in the October unemployment rate to a
24-year low of 4.7 percent indicated a rapidly expanding economy, while,
comparatively, a decline in October retail sales suggested that the economy may
be slowing. Economic growth was also viewed as being contained by the upheaval
in Asian markets, based on expectations that international turmoil would result
in a drop in demand for U.S. exports. However, the threat of inflation was
rekindled in early-December on news of the November unemployment rate dropping
to 4.6 percent, as the tight labor market pushed hourly wages higher. Economic
data released in mid-December provided for a more favorable inflation outlook,
since the increase in November retail sales was well below economists
expectations and producer prices declined in November.
RP Financial, LC.
Page 2.3
Inflation concerns were further eased in early-January 1998 on news that
U.S. manufacturing growth slowed in December and predictions by economists of
slower growth for the U.S. economy in 1998. However, December 1997 employment
data indicated robust economic growth, despite a 0.1 percent increase in the
December unemployment rate to 4.7 percent, as a higher than expected 370,000
jobs were added to the U.S. economy in December. The growing demand for labor
translated into a higher than expected increase in labor costs during the fourth
quarter of 1997. A 0.5 percent increase in industrial production for December
1997 and a 4.3 percent increase in the GDP for the fourth quarter of 1997
further suggested that the financial troubles in Asia had not diminished demand
for U.S. exports by the end of 1997. At the end of January 1998, inflation
concerns were diminished by the December durable goods orders report, which
showed only a slight increase after excluding the volatile transportation
sector. The January unemployment rate was unchanged at 4.7 percent, while the
number of jobs added to the economy was higher than expected. Other economic
data released in February 1998 generally signaled a stable economic environment.
Retail sales were up 0.1 percent in January 1998 versus 0.3 percent in December
1997, while the consumer price index for January was unchanged from December. At
the end of February fourth quarter GDP was revised downward to 3.9 percent,
signaling a possible slowdown in growth in the early part of 1998.
Economic data released in early-March 1998 provided mixed economic signals,
with a decline in the February unemployment rate to 4.6 percent being indicative
of a robust U.S. economy. However, the February employment data also reflected a
decline in manufacturing jobs, which suggested that the growth may not be
sustainable. A decline in February producer prices and plunging oil prices
further eased inflation concerns in mid-March 1998. However, the February CPI
reflected an accelerating economy, after factoring out the sharp decline in
energy prices, indicating that competition from cheap Asian imports hadn't yet
forced many U.S. companies to lower prices. At the end of March, data which
showed a record pace for new and existing home sales in February further
signaled a strong U.S. economy. Tight labor markets were a further indication of
the growing U.S. economy, as inflation adjusted wages for the lowest paid
workers started to rise in 1997, reversing a 25-year economic trend in the U.S.
economy. While the March employment data reflected a loss of jobs and an
increase in the unemployment rate to 4.7 percent from 4.6 percent in February,
the decline in economic activity was believed to be mostly weather-related. A
slower pace of economic growth was also indicated by a slight decline in March
retail sales and consumer prices stayed flat during March.
First quarter GDP growth of 4.2 percent signaled a strong pace of economic
growth, although inflation remained in-check. The favorable inflation data
included decelerating labor costs during the first quarter of 1998 compared to
the fourth quarter of 1997 and the price index for gross domestic purchases was
flat during the first quarter. The April 1998 employment data showed a
surprising decline in the unemployment rate to 4.3 percent,
RP Financial, LC.
Page 2.4
the lowest level since February 1970. However, inflation concerns that were
raised by the sharp decline in the unemployment rate were somewhat eased by a
decline in manufacturing employment, suggesting that the economy may be slowing.
Comparatively, consumer prices rose 0.2 percent in April, which was the largest
increase in six months. Overall, however, the April economic data indicated that
inflation continued to be contained, as the annual core rate of inflation was
measured at just 2.1 percent.
Economic data for May 1998 generally indicated a robust economy, with most
segments of the economy experiencing continued growth. In fact some indicators
suggested that inflation may be creeping back into the economy, most notably a
0.3 percent increase in May consumer prices, a 0.9 percent in May retail sales
and a 0.6 percent in consumer spending during May. The favorable economic
environment was also reflected in the consumer confidence survey for June 1998,
which indicated that consumer confidence was at its higher level since June
1969. At the end of June, first quarter GDP growth was revised upward to a
stronger than expected 4.8 percent annual growth rate; however, much of the
growth was due to the build-up of inventories.
Inflation concerns eased in early-July 1998, as the June unemployment rate
rose to 4.5 percent compared to a a 4.3 percent rate in May. Other June economic
indicators, such as consumer prices, retail sales and industrial output, also
signaled a slowing pace of growth for the U.S. economy. The slow down was in
part attributable to the strikes against GM, most notable with respect to
industrial output, as well as the financial crisis in Asia. Most economists
predict that the brunt of Asia's financial crisis will hit the U.S. in the
second half of 1998 and into the first quarter of 1999.
Consistent with the mixed economic activity, interest rate trends have been
varied as well over the past year. A downward trend in interest rates became
more pronounced during July 1997, following the Federal Reserve's decision to
leave rates unchanged at its early-July meeting and the release of new economic
data that indicated inflation was under control. Slower economic growth
indicated by a second quarter GDP growth rate of 2.2 percent sustained the rally
in bond prices at the end of July. However, in early-August, the stronger than
expected job growth reflected in the July employment data and a falling U.S.
dollar against the yen and mark caused bond prices to tumble. After recovering
briefly on the favorable inflation readings reflected in the July wholesale and
retail prices, bond prices declined in late-August on news of the narrower than
expected June trade deficit. Bond prices rallied briefly at the end of August
and in early-September, due to technical pressures and economic data that showed
manufacturing growth cooled in August. Interest rates increased slightly in
mid-September, reflecting investor fears that the August economic data would
show a strengthening economy and higher prices. However, the low inflation
reading indicated by the August consumer price report ignited a bond market
rally, with the yield on the 30-year bond posting its second largest decline in
the 1990s on September 16,
RP Financial, LC.
Page 2.5
1997. Bond prices approached their highest level in two years in early-October,
reflecting the stable inflation environment as confirmed by the September
unemployment data.
In mid-October 1997, renewed inflation fears raised by the tight labor
markets and growing expectations of a rate hike by the Federal Reserve provided
for an easing in bond prices. The sell-off in the global markets at the end of
October served to abbreviate the decline in bond prices, as skittish investors
dumped stocks in favor of bonds. The Federal Reserve's decision to leave
interest rates unchanged at its mid-November meeting, along with signs of
slowing economic growth indicated by a decline in October retail sales, served
to strengthen the advance in bond prices in mid-November as the yield on the
bellwether 30-year U.S. Treasury bond approached 6.0 percent. Renewed interest
in U.S. Treasury bonds by Japanese investors and fading concerns of inflation
provided for a stable bond market in late-November. The rally in bond prices was
not sustained in early-December, as bond prices declined on news of the
surprisingly strong jobs report for November. However, positive inflation news
indicated by the lower than expected increase in November retail sales and the
decline in November producer prices, as well as world market turmoil, served to
push the yield on the 30-year U.S. Treasury bond below 6.0 percent in
mid-December. Bond prices were further boosted in mid-December by the Federal
Reserve's decision to leave interest rates unchanged at its mid-December
meeting, while a flight to quality caused by lingering concerns over the
long-term stability of Asian financial markets sustained the advance in the bond
market in late-December.
Comments by the Federal Reserve Chairman of possible deflationary pressures
served to strengthen the bond market rally at the beginning of 1998. December
1997 economic data which generally showed a strong pace of economic growth
caused bond prices to retreat slightly in late-January 1998. Bonds rallied
briefly at the end of January, as the Federal Reserve indicated that it would
hold rates steady. In early-February, gains in the stock market translated into
a sell-off in bonds. However, despite the stronger than expected employment
report for January, bond prices edged higher following the release of the
employment data on the first Friday in February. The positive trend in bond
prices was sustained through mid-February, which was supported by economic data
which showed a slower pace of growth. Indications by the Federal Reserve
Chairman that the Federal Reserve would not cut rates soon pushed interest rates
slightly higher in late-February. However, the downward revision to fourth
quarter GDP boosted bond prices modestly at the end of February.
At the beginning of March 1998, signs of a strengthening U.S. economy
pushed the yield on the 30-year bond above 6.0 percent for the first time in
three months. However, the decline in bond prices was short-lived, as declining
oil prices and news of a 1.6 percent decline in February producer prices served
to edge the 30-year bond year back below 6.0 percent in mid-March. The 30-year
bond yield approached 6.0 percent again in late-March, as the economic strength
indicated by the new and existing home sales reports for February heightened
RP Financial, LC.
Page 2.6
speculation that the Federal Reserve would raise interest rates. At its
late-March meeting the Federal Reserve elected to leave interest rates
unchanged, which along with the slight increase in the March unemployment rate,
provided for a mild rally in bond prices during late-March and early-April.
Indications of slower economic growth, such as a decline in March retail
sales, provided for a fairly stable interest rate environment through mid-April
1998. Speculation that the Federal Reserve was leaning towards increasing
interest rates triggered a sell-off in bonds during late-April, as the 30-year
bond yield moved above 6.0 percent. However, the downturn was abbreviated by the
favorable inflation data reflected for labor costs during the first quarter of
1998, which pushed the yield on the 30-year bond back below 6.0 percent at the
end of April. News of the sharp decline in the April unemployment rate
translated into slightly higher interest rates in early-May, reflecting concerns
that the tight labor market would result in higher labor costs. Comparatively,
interest rates edged lower in mid-May, with turmoil in the Asian markets and the
Federal Reserve's decision not to raise interest rates at its May meeting being
noted as reasons for the decline in interest rates. A flight to quality served
to preserve the positive trend in bond prices through the end of May, reflecting
worries about the Russian economy and tensions between India and Pakistan.
Asian economic worries and indications by the Federal Reserve Chairman that
an increase in interest rates was not imminent served to preserved the downward
trend in interest rates during the first half of June 1998. In mid-June the
bellwether 30-year Treasury bond yield approximated 5.65 percent, which was the
lowest yield recorded since the Treasury Department began issuing 30-year fixed
rate maturities in 1977. Interest rates spiked higher in mid-June, reflecting
inflation concerns prompted by the higher than expected increase in May consumer
prices. However, bond prices strengthened in late-June and early-July, as the
Federal Reserve elected not to increase rates at its early-July meeting and an
increase in the June unemployment rate eased inflation concerns. Despite the
favorable inflation readings indicated by the June economic data, bond yields
rose slightly in mid-July. The dip in bond prices was largely attributed to a
recovery in the yen, which reduced demand for U.S. Treasurys. Further unsettling
news from the world economic markets, in particular Asia and Japan, and the
bombing of the suspected terrorist operations in Sudan and Afghanistan, resulted
in declines in stock market prices in early and mid-August 1998, along with
increased demand for lower risk U.S. Treasury securities. During mid-August, the
yields on long-term U.S. Treasury securities reached historic lows of under 5.50
percent. As of August 21, 1998, one- and thirty-year U.S. Government bonds were
yielding 5.19 percent and 5.43 percent, respectively, versus comparative year
ago rates of 5.55 percent and 6.62 percent, respectively. Exhibit II-2 provides
historical interest rate trends from 1991 through August 21, 1998.
RP Financial, LC.
Page 2.7
Market Area Demographics
Demographic growth trends in the primary market area of Suffolk County and
zip code 02151 have been measured by changes in population, number of households
and median household income and other data, with trends in those areas
summarized by the data presented in Exhibit II-3. Massachusetts, Boston MSA and
U.S. data is provided for comparative purposes, and trends in this data provide
some indication of future levels of business activities for financial
institutions.
The Bank's office is located in a relatively small market area in terms of
population, as zip code 02151 reported a total population of approximately
39,000 as of 1998. Since 1980, the primary market area zip code has experienced
declines in population and households, and the decline in population and
households is projected to continue through the year 2003. The lack of
demographic growth in Revere is generally reflective of outmigration of
residents as such individuals move to more outlying areas with lower cost and
newer housing stock. Suffolk County has also reported slight annual declines in
population and housing (minus 0.4 and minus 0.2 percent, respectively), in
contrast to statewide averages of positive 0.3 and 0.6 percent, respectively.
All of these figures, however, trail the national averages of approximately a
1.0 percent annual growth rate.
The market area zip code reported lower income levels in comparison to
statewide and national averages. Estimated per capita annual income for 1998 in
zip code 02151 was under $18,000, 2 percent less than the county-wide average
and 10 percent less than the state average. Median household income levels were
slightly higher than the county figures but lower than the state averages.
Income distribution levels are similar to per capita income figures, revealing
that zip code 02151 has a higher proportion of lower income households (below
$100,000 annually), reflecting the lower income nature of the area. Based on the
declining population trends and lower income levels, growth opportunities in the
primary market area counties can be expected to be limited, with growth
achievable through increased market share of local financial institution
deposits.
Economy
Most of the Bank's deposit gathering activities and a substantial portion
of the lending operations are conducted in the city of Revere, more specifically
zip code 02151. Employment in Revere is generally diversified, containing
employment in services, wholesale and retail trade and government. Table 2.1
below presents the major employers within the city of Revere, and Exhibit II-4
presents additional data concerning sources of personal income and employment
sectors. As shown by the list of employers in Table 2.1, the Bank's primary
market area of Revere City contains a relatively well diversified employment
base. In addition, the Revere City area has in process a number of additional
development projects, including six additional
RP Financial, LC.
Page 2.8
hotels/motels, an assisted living care center, a Walgreens store, a Pep Boys
Automotive store, a Super Stop and Shop, a Showcase Cinema and a U.S. Postal
Facility. All of these projects are expected to be completed within the next two
years, and provide significant additional employment to the local economy.
Table 2.1
Revere Federal Savings and Loan Association
Major Employers
Employer Industry Employees
Trend Lines Wholesale Parts and Distribution 485
Wonderland Dogtrack 405
Stop & Shop Supermarket 285
Lighthouse Nursing Care Center Nursing Home 225
Shaw's Supermarket 210
Annemark Nursing Home Nursing Home 160
Mass General Hospital 140
Johnny's Foodmaster Supermarket 137
Oak Island Skilled Nursing Home Nursing Home 120
Showcase Cinema Movie Theater 100
Ames Department Store Retail Store 100
Source: Local Area Chamber of Commerce.
In recent years, the Bank's lending operations have expanded beyond the
Revere City limits to include other areas of the metropolitan region, including,
for example, the cities of Chelsea, Malden and Saugus. Logan International
Airport is located in East Boston, a portion of the city of Boston, which is
adjacent to Revere and Chelsea. These cities contain an active and growing
commercial business environment for financial institutions. The Bank has
previously targeted the area surrounding Logan International Airport as a source
of potential business, and fully intends to increase activities in that area.
Another indication of the economic situation in a local area is recent
unemployment data, and Table 2.2 displays unemployment data in the local market
area as of May 1997 and May 1998. Over the last year, the unemployment rates for
both Suffolk County and zip code 02151 have remained above statewide averages,
and the employment situation has improved in the most recent twelve month
period. All comparative unemployment rates are below the national averages,
indicating a level of strength to the local economy. The local market area's
unemployment situation was also assisted by the population declines which act to
lower the supply of available labor.
RP Financial, LC.
Page 2.9
Table 2.2
Revere Federal Savings and Loan Association
Market Area Unemployment Trends
Region May 1997 May 1998
------ -------- --------
United States 4.7% 4.2%
Massachusetts 3.8 3.3
Suffolk County 4.1 3.6
Revere City 5.1 4.1
Source: U.S. Bureau of Labor Statistics.
Deposit Trends and Competition
The market area (defined as zip code 02151 for deposits), is characterized
by the presence of both locally-based and locally-owned financial institutions
and larger, regional institutions. Major competitors include financial
institutions such as BankBoston, N.A., Fleet National Bank, Citizens Bank of
Massachusetts, Boston Federal Savings Bank (holding company for The Broadway
National Bank of Chelsea) and East Boston Savings Bank.
Table 2.3 displays deposit market trends for the Commonwealth of
Massachusetts and the primary market area from June 30, 1995 to June 30, 1997.
Overall, financial institution deposits showed an increase statewide, with
commercial banks showing growth at a higher rate than savings institutions
(including FDIC-insured savings banks). This trend of increases in overall
deposits, similar to the rest of the nation, reflects the positive performance
of the overall economy in recent years that has led to increased levels of
personal income and personal wealth. Such increases, however, have been
mitigated in part by disintermediation whereby banking customers have also
placed available funds into other types of financial intermediaries such as
mutual funds, investment firms, brokerage houses, and insurance companies.
Deposit trends in Suffolk County exhibited much stronger growth trends than the
state, however savings institutions reported an overall decline in deposits in
Suffolk County. Commercial banks hold over 90 percent of financial institution
deposits in Suffolk County, compared to a lower 61 percent market share in the
state as a whole.
Deposit trends in zip code 02151 exhibited a lower rate of deposit
increase, as total deposits increased by 3.3 percent annually over the two year
period. The increase in deposits was recorded by both commercial banks and
savings institutions, with savings institutions recording a much higher growth
rate due to the addition of a branch office by East Boston Savings Bank. The
relatively low deposit growth may result from the declining
-------------------------------------------------------------------
Table 2.3
Revere Federal Savings and Loan Association
Deposit Summary
-------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
As of June 30,
-------------------------------------------------------------------------
1995 1997
------------------------------------- --------------------------------- Deposit
Market Number of Market No. of Growth Rate
Deposits Share Branches Deposits Share Branches 1995-1997
(Dollars In Thousands) (%)
Commonwealth of Massachusetts $101,860,043 100.0% 1,929 $114,096,300 100.0% 1,904 5.8%
Commercial Banks 60,218,683 59.1% 1,015 69,959,881 61.3% 947 7.8%
Savings Institutions 41,641,360 40.9% 914 44,136,419 38.7% 957 3.0%
Suffolk County $ 33,993,056 100.0% 207 $ 48,301,065 100.0% 200 19.2%
Commercial Banks 29,572,612 87.0% 145 44,446,189 92.0% 136 22.6%
Savings Institutions 4,420,444 13.0% 62 3,854,876 8.0% 64 -6.6%
Revere FS&LA 47,295 0.1% 1 54,613 0.1% 1 7.5%
Zip Code 02151 $ 354,374 100.0% 6 $ 378,050 100.0% 7 3.3%
Commercial Banks 307,079 86.7% 5 311,206 82.3% 5 0.7%
Savings Institutions 47,295 13.3% 1 66,844 17.7% 2 18.9%
Revere FS&LA 47,295 13.3% 1 54,613 14.4% 1 7.5%
- ----------------------------------------------------------------------------------------------------------------------------
Source: FDIC; OTS.
RP Financial, LC.
Page 2.11
population base and the competitive nature for deposits. Revere has recorded
increases in deposits over the time period shown in Table 2.3 at a rate higher
than the zip code average, resulting in an increase in deposit market share
since June 30, 1995. Data available subsequent to June 30, 1997 reveals a
continued increase in deposit funds for the Bank. This increase in deposits
reveals success in raising additional retail deposit funds for business
operations.
Summary
The overall condition of the primary market area can be characterized as
relatively stable in terms of population and household base. The local economy
is relatively diversified. In order to support the Bank's desired level of
business operations, lending activities have been pursued in a larger
geographical area consisting of the metropolitan area north of the city of
Boston, including a targeted area to the south in Chelsea. Going forward, in
view of the local demographic and economic trends and the numbers and types of
competitors in the market area, the competition for deposits is expected to
remain substantial, which will result in Revere Federal having to pay
competitive deposit rates to maintain local market share. The reinvestment of
stock proceeds from the conversion may mitigate to some extent the potentially
higher funding costs to attract deposits through anticipated loyalty of local
shareholders and referrals from local shareholders.
RP Financial, LC.
Page 3.1
III. PEER GROUP ANALYSIS
This chapter presents an analysis of Revere Federal's operations versus a
group of comparable companies (the "Peer Group") selected from the universe of
all publicly-traded savings institutions. The primary basis of the pro forma
market valuation of Revere Federal is provided by these public companies.
Factors affecting the Bank's pro forma market value such as financial condition,
credit risk, interest rate risk, and recent operating results can be readily
assessed in relation to the Peer Group. Current market pricing of the Peer
Group, subject to appropriate adjustments to account for differences between
Revere Federal and the Peer Group, will then be used as a basis for the
valuation of Revere Federal's to-be-issued common stock.
Peer Group Selection
The mutual holding company form of ownership has been in existence in its
present form since 1991. As of the date of this appraisal, there were
approximately 22 publicly-traded institutions operating as subsidiaries of MHCs.
We believe there are a number of characteristics of MHC shares that make them
different from the shares of fully-converted companies. These factors include:
(1)lower aftermarket liquidity in the MHC shares since less than 50 percent of
the shares are available for trading; (2)guaranteed minority ownership interest,
with no opportunity of exercising voting control of the institution in the MHC
form of organization, thus limiting acquisition speculation in the stock price;
(3)the potential impact of "second step" conversions on the pricing of public
MHC institutions; (4)the regulatory policy regarding the dividend waiver by MHC
institutions; and (5)certain MHCs have formed or are forming middle-tier holding
companies, facilitating the ability for stock repurchases, thus improving the
liquidity of the stock on an interim basis. We believe that each of these
factors has an impact on the pricing of the shares of MHC institutions, and that
such factors are not reflected in the pricing of fully-converted public
companies.
Given the unique characteristic of the MHC form of ownership, RP Financial
concluded that the appropriate Peer Group for Revere Federal's valuation should
be comprised of the subsidiary institutions of mutual holding companies. The
Peer Group is consistent with the regulatory guidelines, and other recently
completed MHC transactions. Further, the Peer Group should be comprised of only
those MHC institutions whose common stock is either listed on a national
exchange or is NASDAQ listed, since the market for companies trading in this
fashion is regular and reported. We believe non-listed MHC institutions are
inappropriate for the Peer Group, since the trading activity for thinly-traded
stocks is typically highly irregular in terms of frequency and price and may not
be a reliable indicator of market value. We have excluded from the Peer Group
those public MHC institutions that are currently pursuing a "second step"
conversion and/or companies whose market prices appear to be distorted by
speculative factors or unusual operating conditions. The universe of all
publicly-
RP Financial, LC.
Page 3.2
traded MHC institutions is included as Exhibit III-2. Institutions excluded from
the calculation of averages have been denoted with a footnote (7).
Basis of Comparison
This appraisal includes two sets of financial data and ratios for each
public MHC institution. The first set of financial data reflects the actual book
value, earnings, assets and operating results reported by the public MHC
institutions in its public filings inclusive of the minority ownership interest
outstanding to the public. The second set of financial data, discussed at length
in the following chapter, places all of the public MHC institutions on equal
footing by restating their financial data and pricing ratios on a
"fully-converted" basis assuming the sale of the majority shares held by the
MHCs in public offerings based on their respective current prices and standard
assumptions for a thrift conversion offering. Throughout the appraisal, the
adjusted figures will be specifically identified as being on a fully-converted
basis. Unless so noted, the figures referred to in the appraisal will be actual
financial data reported by the public MHC institutions.
Both sets of financial data have their specific use and applicability to
the appraisal. The actual financial data, as reported by the public MHC
institutions and reflective of the minority interest outstanding, will be used
primarily in this Chapter III to make financial comparisons between the Peer
Group and Revere Federal. The differences between the Peer Group's reported
financial data and the financial data of Revere Federal as a mutual institution
are not significant enough to distort the conclusions of the comparison (in
fact, such differences are greater in a standard conversion appraisal). The
adjusted financial data (fully-converted basis) will be more fully described and
quantified in the pricing analysis discussed in Chapter IV of the appraisal. The
fully-converted pricing ratios are considered critical to the valuation analysis
in Chapter IV, because they place each public MHC institution on a
fully-converted basis (making their pricing ratios comparable to the pro forma
valuation conclusion reached herein), eliminate distortion in pricing ratios
between public MHC institutions that have sold different percentage ownership
interests to the public, and reflect the actual pricing ratios (fully-converted
basis) being placed on public MHC institutions in the market today to reflect
the unique trading characteristics of public MHC institutions.
Selection of Peer Group
Under ideal circumstances, the Peer Group would be comprised of ten
publicly-traded Massachusetts-based MHC institutions with capital, earnings,
credit quality and interest rate risk comparable to Revere Federal. However, the
universe of 22 public MHC institutions only includes one institution
headquartered in Massachusetts (Brookline Bancorp). Out of the 22 public MHCs,
19 were included for the Peer Group. Pulaski
RP Financial, LC.
Page 3.3
Bank of Missouri, Community Savings of Florida and First FSB of Souixland, IA
were excluded from the group, as the result of announcing plans to complete a
second-step conversion and, thus, its pricing ratios have become distorted in
anticipation of the second-step appraisal.
Unlike the universe of public companies, which includes approximately 360
public companies, the universe of public MHC institutions is small, thereby
limiting the prospects of a relatively comparable Peer Group. Nonetheless,
because the trading characteristics of public MHC institution shares are
significantly different from those of fully-converted companies, the universe of
19 public MHC institutions was the most appropriate group for this valuation.
Relying solely on full stock public companies for the Peer Group would not
capture the difference in current market pricing for public MHC institutions and
thus could lead to distorted valuation conclusions. The federal regulatory
agencies have previously concurred with this selection procedure of the Peer
Group for MHC valuations.
Potential shortcomings to using all 19 publicly-traded MHCs include the
variations in asset sizes, operating strategies, market areas (both regional and
local), and financial measures among the 19 public MHC institutions. Although we
considered these potential shortcomings in our analysis, RP Financial's ultimate
conclusion was that the size of the Peer Group was statistically meaningful
(i.e., there were enough institutions included to support meaningful
conclusions), the differences in financial and other characteristics among the
Peer Group members would, on average, be offsetting (i.e., the pricing reflected
in the exceptionally strong market in Florida would be offset by the weaker
market pricing of an institution operating in Iowa), and importantly the pricing
characteristics were more relevant than fully-converted institutions. To account
for differences between Revere Federal and the MHC Peer Group in reaching a
valuation conclusion, it will be necessary to make certain valuation
adjustments. The following discussion addresses financial similarities and
differences.
Table 3.1 on the following page lists key general characteristics of the
Peer Group companies. Although there are differences among several of the Peer
Group members, by and large they are well-capitalized and profitable
institutions and their decision to reorganize in MHC form itself suggests a
commonalty of operating philosophy. Importantly, the trading prices of the Peer
Group companies reflect the unique operating and other characteristics of public
MHC institutions. While the Peer Group is not exactly comparable to Revere
Federal, we believe such companies form a good basis for the valuation of Revere
Federal, subject to certain valuation adjustments.
In aggregate, the Peer Group companies maintain a slightly higher level of
capitalization relative to the universe of all public thrifts (14.21 percent of
assets versus 13.77 percent for the all public average), generate lower core
earnings (0.87 percent ROA versus 0.90 percent average for the all public
average), and generate a
RP Financial, LC.
Page 3.4
lower core ROE (6.57 percent core ROE versus 7.81 percent for the all public
average). Please note that RP Financial has used core earnings in this
discussion to eliminate the effects of non-operating items.
The summary table below underscores the key differences, particularly in
the average pricing ratios between full stock and MHC institutions (both as
reported and on a fully-converted basis).
Publicly-Traded MHCs
(Excluding Announced
Second Steps)
-------------
Fully
All MHC Converted
Publicly-Traded Reported Basis
(Excluding MHCs) Basis (Pro Forma)
Financial Characteristics (Averages)
Assets ($Mil) $ 1,158 $ 1,055 $ 1,178
Equity/Assets (%) 13.77% 14.21% 23.52%
Core Return on Assets (%) 0.90 0.87 1.11
Core Return on Equity (%) 7.81 6.57 4.76
Pricing Ratios (Averages)(1)
Core Price/Earnings (x) 19.30x 26.68x 20.38x
Price/Book (%) 144.65% 188.39% 93.76%
Price/Assets (%) 18.02% 24.61% 21.68%
(1) Based on market prices as of August 21, 1998.
The following sections present a comparison of Revere Federal's financial
condition, income and expense trends, loan composition, interest rate risk and
credit risk versus the figures reported by the Peer Group. The conclusions drawn
from the comparative analysis are then factored into the valuation analysis
discussed in the final chapter.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.1
Peer Group of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ -------
($) ($Mil)
PBCT Peoples Bank, MHC of CT (41.2) (3) OTC Southwestern CT Div. 9,149 111 12-31 07/88 27.00 1,732
NWSB Northwest Bcrp MHC of PA (30.8 OTC Northwest PA Thrift 2,410 67 06-30 11/94 12.75 597
HARS Harris Fin. MHC of PA (24.9) OTC Harrisburg PA M.B. 2,260 33 12-31 01/94 17.75 603
FFFL Fidelity Bcsh MHC of FL (47.9) OTC Southeast FL Thrift 1,321 20 12-31 01/94 26.50 180
NBCP Niagara Bancorp of NY MHC(45.4 (3) OTC Northern NY Thrift 1,296 P 15 12/31 04/98 11.38 339
BRKL Brookline Bncp MHC of MA(47.0) OTC Brookline Thrift 817 5 08-31 03/98 12.75 371
LFED Leeds Fed Bksr MHC of MD (36.3 OTC Baltimore MD Thrift 299 1 06-30 05/94 17.50 91
BCSB BCSB Bankcorp MHC of MD (38.6) OTC Baltimore Thrift 274 P 6 12-31 07/98 11.38 70
ALLB Alliance Bank MHC of PA (19.9) OTC Southeast PA Thrift 273 7 12-31 03/95 21.25 70
WAYN Wayne Svgs Bks MHC of OH (48.2 OTC Central OH Thrift 260 6 03-31 06/93 22.25 55
SBFL SB Fngr Lakes MHC of NY (33.1) OTC Western NY Thrift 251 5 12-31 11/94 16.00 57
LIBB Liberty Bancorp MHC of NJ (47) OTC Northeast NJ Thrift 241 P 4 12-31 07/98 10.25 40
PHSB Ppls Home SB, MHC of PA (45.0) OTC Western PA Thrift 223 9 12-31 07/97 16.25 45
PBHC Pathfinder BC MHC of NY (45.2) (3) OTC Upstate NY Thrift 196 5 12-31 11/95 15.00 42
PLSK Pulaski SB, MHC of NJ (47.0) OTC New Jersey Thrift 191 6 12-31 04/97 14.88 31
GBNK Gaston Fed Bncp MHC of NC(47.0 OTC Southwest NC Thrift 171 P 4 9-30 04/98 12.50 56
JXSB Jcksnville SB,MHC of IL (45.6) OTC Central IL Thrift 170 4 12-31 04/95 16.75 32
SKBO First Carnegie MHC of PA(45.0) OTC Western PA Thrift 148 3 03-31 04/97 13.25 30
WCFB Wbstr Cty FSB MHC of IA (45.6) OTC Central IA Thrift 94 1 12-31 08/94 17.63 37
NOTES: (1) Or most recent date available (M=March, S=September, D=December,
J=June, E=Estimated, and P=Pro Forma)
(2) Operating strategies are: Thrift=Traditional Thrift,
M.B.=Mortgage Banker, R.E.=Real Estate Developer,
Div.=Diversified, and Ret.=Retail Banking.
(3) FDIC savings bank institution.
Source: Corporate offering circulars, data derived from information published in
SNL Securities Quarterly Thrift Report, and financial reports of
publicly-traded thrifts.
Date of Last Update: 09/03/98
RP Financial, LC.
Page 3.6
Financial Condition
Table 3.2 shows comparative balance sheet measures for Revere Federal and
the Peer Group. Revere Federal's ratios reflect June 30, 1998 figures, while the
Peer Group's ratios reflect balances as March 31, 1998, unless otherwise
indicated for the Peer Group companies. Revere Federal's net worth base of 7.2
percent was below the Peer Group's average net worth ratio of 12.0 percent;
however, with the addition of stock proceeds, the Bank's pro forma capital
position (consolidated with the holding company) will likely be comparable to
the Peer Group's ratio. Revere Federal's capital consisted entirely of tangible
capital, while the Peer Group's capital included a modest amount of intangibles.
The increase in the Bank's capital position to be realized from the stock
offering will serve to enhance future earnings potential that may be realized
through leverage and lower funding costs. However, at the same time, the Bank's
higher pro forma capital position will likely result in a decline in return on
equity. Both the Bank's and the Peer Group's capital ratios reflected capital
surpluses over the regulatory capital requirements, with the Peer Group's ratios
currently indicating greater capital surpluses.
The interest-earning asset compositions for the Bank and the Peer Group
were somewhat similar, with loans constituting the bulk of interest-earning
assets for both Revere Federal and the Peer Group. The Peer Group's combined
level of loans and mortgage-backed securities was lower than the Bank's ratio
(72.0 percent of assets versus 77.1 percent for the Bank), as the Peer Group
maintained a higher concentration of loans but a lower level of mortgage-backed
securities relative to the Bank's measures. Comparatively, the Bank's cash and
investments-to-assets ratio was lower than the comparable ratio for Peer Group
(20.9 percent of assets versus 24.6 percent for the Peer Group). Overall, Revere
Federal's interest-earning assets amounted to 98.0 percent of assets, which was
higher than the comparative Peer Group ratio of 96.5 percent.
Revere Federal's funding liabilities reflected a funding strategy that was
similar to that of the Peer Group's funding composition. The Bank's deposits
equaled 70.9 percent of assets, which was below the Peer Group average of 74.8
percent. Borrowings were utilized to a slightly greater degree by Revere
Federal, as the Bank and the Peer Group posted borrowings-to-assets ratios of
21.7 percent and 9.4 percent, respectively. Subordinated debt represented a
nominal balance on the Peer Group's balance sheet, as the result of one Peer
Group company holding subordinated debt equal to 1.6 percent of assets. Total
interest-bearing liabilities maintained by the Bank and the Peer Group, as a
percent of assets, equaled 92.6 and 84.2 percent, respectively, with the Peer
Group's lower ratio being supported by maintenance of a higher capital position.
A key measure of balance sheet strength for a thrift institution is its
IEA/IBL ratio. Presently, the Peer Group's IEA/IBL ratio is slightly higher than
the Bank's ratio, based on respective ratios of 114.6 percent and 105.8 percent.
The additional capital realized from stock proceeds should serve to provide
Revere Federal
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.2
Balance Sheet Composition and Growth Rates
Comparable Institution Analysis
As of March 31, 1998
Balance Sheet as a Percent of Assets
----------------------------------------------------------------------------------------
Cash and Borrowed Subd. Net Goodwill Tng Net MEMO:
Investments Loans MBS Deposits Funds Debt Worth & Intang Worth Pref.Stock
----------- ------ ------ -------- -------- ------- -------- -------- ------- ----------
Revere Federal Savings of MA
- ----------------------------
June 30, 1998 20.9 52.7 24.4 70.9 21.7 0.0 7.2 0.0 7.2 0.0
SAIF-Insured Thrifts 19.1 67.1 10.5 69.2 15.1 0.2 13.4 0.3 13.1 0.0
All Public Companies 19.6 66.3 10.7 69.6 15.0 0.2 13.2 0.3 12.9 0.0
Comparable Group Average 24.5 59.2 12.8 74.8 9.4 0.1 12.3 0.3 12.0 0.0
Mid-Atlantic Companies 24.8 55.8 16.2 77.0 10.7 0.0 11.1 0.3 10.8 0.0
Mid-West Companies 17.6 71.2 8.0 81.5 2.6 0.0 14.6 0.0 14.6 0.0
New England Companies 30.7 63.1 0.1 65.0 11.5 0.8 21.2 0.7 20.6 0.0
Other Comparative Companies 27.2 57.4 12.7 60.8 10.4 0.0 7.1 0.1 7.0 0.0
Comparable Group
- ----------------
Florida Companies
- -----------------
FFFL Fidelity Bcsh MHC of FL (47.9) 5.4 68.1 22.7 69.8 19.5 0.0 6.7 0.2 6.5 0.0
Mid-Atlantic Companies
- ----------------------
ALLB Alliance Bank MHC of PA (19.9) 35.9 56.3 4.9 77.2 11.4 0.0 10.7 0.0 10.7 0.0
BCSB BCSB Bankcorp MHC of MD (38.6)(3) 20.7 63.0 14.4 88.4 0.0 0.0 9.9 0.0 9.9 0.0
SKBO First Carnegie MHC of PA(45.0) 14.4 45.8 36.7 52.1 29.4 0.0 16.9 0.0 16.9 0.0
HARS Harris Fin. MHC of PA (24.9) 55.9 40.2 0.1 50.4 39.9 0.0 8.1 0.8 7.3 0.0
LFED Leeds Fed Bksr MHC of MD (36.3 29.3 62.8 5.4 81.2 0.2 0.0 16.5 0.0 16.5 0.0
LIBB Liberty Bancorp MHC of NJ (47)(1)(3) 4.0 70.0 24.3 91.2 0.8 0.0 7.6 0.0 7.6 0.0
NBCP Niagara Bancorp of NY MHC(45.4 33.0 48.4 16.0 85.1 2.9 0.0 10.1 0.0 10.1 0.0
NWSB Northwest Bcrp MHC of PA (30.8 21.6 73.6 1.9 82.4 7.6 0.0 8.9 0.9 7.9 0.0
PBHC Pathfinder BC MHC of NY (45.2) 17.0 64.5 11.2 78.8 8.5 0.0 11.8 1.8 10.0 0.0
PHSB Ppls Home SB, MHC of PA (45.0) 19.6 44.2 33.1 78.1 8.3 0.0 12.8 0.0 12.8 0.0
PLSK Pulaski SB, MHC of NJ (47.0) 16.8 52.8 27.5 84.8 2.9 0.0 11.5 0.0 11.5 0.0
SBFL SB Fngr Lakes MHC of NY (33.1) 29.8 48.3 18.4 74.5 15.9 0.0 8.7 0.0 8.7 0.0
Mid-West Companies
- ------------------
JXSB Jcksnville SB,MHC of IL (45.6) 12.2 75.8 7.8 87.7 0.1 0.0 10.4 0.0 10.4 0.0
WAYN Wayne Svgs Bks MHC of OH (48.2 14.6 80.0 1.6 83.8 6.2 0.0 9.4 0.0 9.4 0.0
WCFB Wbstr Cty FSB MHC of IA (45.6) 25.8 57.9 14.7 73.0 1.5 0.0 24.0 0.0 24.0 0.0
New England Companies
- ---------------------
BRKL Brookline Bncp MHC of MA(47.0) 33.7 64.9 0.1 57.5 7.6 0.0 33.2 0.0 33.2 0.0
PBCT Peoples Bank, MHC of CT (41.2) 27.6 61.3 0.0 72.4 15.5 1.6 9.2 1.3 7.9 0.0
South-East Companies
- --------------------
GBNK Gaston Fed Bncp MHC of NC(47.0 49.0 46.8 2.8 51.9 1.2 0.0 7.5 0.0 7.5 0.0
Balance Sheet Annual Growth Rates Regulatory Capital
------------------------------------------------------------ -------------------------
Cash and Loans Borrows. Net Tng Net
Assets Investments & MBS Deposits &Subdebt Worth Worth Tangible Core Reg.Cap.
------ ----------- ------ -------- -------- -------- ------- -------- -------- --------
Revere Federal Savings of MA
- ----------------------------
June 30, 1998 2.86 -2.51 4.33 18.49 -29.65 7.46 7.46 6.63 6.63 17.89
SAIF-Insured Thrifts 15.17 9.71 13.36 8.77 16.45 5.08 5.13 11.18 11.28 22.95
All Public Companies 15.36 10.08 13.81 8.57 16.46 5.81 5.65 11.18 11.11 22.47
Comparable Group Average 14.17 9.71 9.77 6.40 22.05 11.34 8.72 12.36 12.97 26.34
Mid-Atlantic Companies 8.99 2.77 10.00 6.02 37.44 11.30 9.37 12.06 11.94 27.69
Mid-West Companies 2.46 21.76 -0.98 1.61 -15.32 4.27 4.27 16.52 14.51 28.57
New England Companies 20.88 35.31 11.01 9.12 4.20 33.20 14.29 8.20 17.20 13.00
Other Comparative Companies 56.06 5.59 23.24 13.12 9.38 11.21 10.01 11.60 11.60 22.91
Comparable Group
- ----------------
Florida Companies
- -----------------
FFFL Fidelity Bcsh MHC of FL (47.9) 42.48 5.59 45.08 23.87 NM 8.28 5.89 7.60 7.60 15.20
Mid-Atlantic Companies
- ----------------------
ALLB Alliance Bank MHC of PA (19.9) 14.27 12.96 16.78 11.28 49.32 6.71 6.71 NM 10.79 26.12
BCSB BCSB Bankcorp MHC of MD (38.6)(3) 5.94 17.16 2.64 4.78 NM 9.89 NM 7.71 7.71 16.58
SKBO First Carnegie MHC of PA(45.0) -8.86 -51.25 7.10 -12.05 -0.94 NM NM 16.80 16.80 52.20
HARS Harris Fin. MHC of PA (24.9) 16.31 31.37 0.36 -3.09 51.01 19.48 24.32 6.99 6.99 12.99
LFED Leeds Fed Bksr MHC of MD (36.3 6.07 7.48 4.09 5.53 -14.29 8.08 8.08 16.00 16.00 32.54
LIBB Liberty Bancorp MHC of NJ (47)(1)(3) 6.88 -29.70 9.47 4.81 NM 15.48 15.48 9.47 9.47 23.98
NBCP Niagara Bancorp of NY MHC(45.4 17.88 54.04 8.64 16.02 NM 16.42 16.42 19.10 19.10 35.63
NWSB Northwest Bcrp MHC of PA (30.8 20.63 32.78 17.22 22.32 18.34 9.87 4.54 NM NM NM
PBHC Pathfinder BC MHC of NY (45.2) 3.05 -25.03 11.89 -2.47 89.79 7.49 -8.93 NM NM NM
PHSB Ppls Home SB, MHC of PA (45.0) 8.77 3.30 11.72 -1.59 83.45 NM NM 12.25 12.25 29.66
PLSK Pulaski SB, MHC of NJ (47.0) -0.90 -33.69 10.48 8.88 NM NM NM 11.83 11.83 28.08
SBFL SB Fngr Lakes MHC of NY (33.1) 17.87 13.88 19.62 17.81 22.84 8.31 8.31 8.41 8.41 19.12
Mid-West Companies
- ------------------
JXSB Jcksnville SB,MHC of IL (45.6) 3.55 39.88 0.11 3.46 -30.42 4.34 4.34 NM 10.49 15.70
WAYN Wayne Svgs Bks MHC of OH (48.2 3.00 8.34 1.01 2.92 -0.22 5.67 5.67 9.63 9.63 17.50
WCFB Wbstr Cty FSB MHC of IA (45.6) 0.82 17.05 -4.05 -1.56 NM 2.80 2.80 23.41 23.41 52.50
New England Companies
- ---------------------
BRKL Brookline Bncp MHC of MA(47.0) 20.39 47.73 10.17 -4.12 -4.32 NM NM NM 26.20 NM
PBCT Peoples Bank, MHC of CT (41.2) 21.38 22.90 11.85 22.36 12.72 33.20 14.29 8.20 8.20 13.00
South-East Companies
- --------------------
GBNK Gaston Fed Bncp MHC of NC(47.0 69.64 NM 1.40 2.38 9.38 14.14 14.14 15.59 15.59 30.61
(1) Financial information is for the quarter ending December 31, 1997.
(3) Growth rates have been annualized from available financial information.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP Financial, LC.
Page 3.8
with an IEA/IBL ratio that is comparable to or slightly higher than currently
maintained by the Peer Group, as the interest-free capital realized in Revere
Federal's stock offering is expected to be deployed primarily into
interest-earning assets.
The growth rate section of Table 3.2 shows annual growth rates for key
balance sheet items. Revere Federal's growth rates are based on annualized
growth for the nine months ended June 30, 1998, while the Peer Group's growth
rates are based on annual growth for the 12 months ended March 31, 1998, or the
most recent period available. Asset growth rates of positive 2.86 percent and
positive 14.17 percent were posted by the Bank and the Peer Group, respectively.
Growth in loans accounted for most of the Bank's asset growth, while both
investments and MBS recorded declines. Growth in all major asset categories,
loans, MBS and investments accounted for most of the Peer Group's asset growth.
Given Revere Federal's current level of capital, Revere Federal's capacity to
leverage further is somewhat limited without the infusion of capital to be
realized from the minority stock offering, while the Peer Group maintains a
higher capital level for future leverage.
Deposit growth of 18.5 percent funded most of Revere Federal's asset
growth, which exceeded the Peer Group's deposit growth rate of 6.4 percent.
Borrowings declined at the Bank, offsetting the increase in deposits and
resulting in the much lower overall asset growth rate. Growth in borrowings was
also exhibited by the Peer Group companies, with the Peer Group posting a
borrowings growth rate of 22.1 percent. In fact, the Peer Group's borrowings
growth rate was somewhat understated, as the "NM" borrowings growth rates shown
for five of the Peer Group companies included companies with borrowings growth
rates in excess of 100 percent.
Capital growth rates posted by the Bank and the Peer Group equaled positive
7.5 percent and positive 11.3 percent, respectively, reflecting Revere Federal's
lower return on average assets. Dividend payments further reduced the Peer
Group's lower capital growth rate. Following the increase in capital realized
from stock offering proceeds, the Bank's capital growth rate will be depressed
by its higher pro forma capital position, as well as by possible dividend
payments and stock repurchases.
Income and Expense Components
Revere Federal and the Peer Group reported net income to average assets
ratios of 0.36 percent and 0.89 percent, respectively (see Table 3.3), based on
earnings for the twelve months ended June 30, 1998 for Revere, and March 31,
1998 for the Peer Group companies, unless otherwise indicated. The higher return
posted by the Peer Group was due primarily to lower operating expenses and
higher non-interest income. In terms of core earnings measures, the Bank
maintained a slightly higher net interest margin than the Peer
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.3
Income as a Percent of Average Assets and Yields, Costs, Spreads
Comparable Institution Analysis
For the Twelve Months Ended March 31, 1998
Net Interest Income Other Income
---------------------------- -------------------
Loss NII Total
Net Provis. After Loan R.E. Other Other
Income Income Expense NII on IEA Provis. Fees Oper. Income Income
------ ------ ------- ------ ------- ------- ---- ----- ------ ------
Revere Federal Savings of MA
----------------------------
June 30, 1998 0.36 7.54 4.19 3.35 0.22 3.13 0.00 0.00 0.17 0.17
SAIF-Insured Thrifts 0.90 7.40 4.14 3.27 0.13 3.14 0.10 0.01 0.31 0.42
All Public Companies 0.91 7.39 4.07 3.31 0.13 3.18 0.10 0.01 0.31 0.43
Comparable Group Average 0.89 7.13 3.96 3.18 0.10 3.07 0.14 0.00 0.25 0.39
Mid-Atlantic Companies 0.80 7.00 3.95 3.05 0.08 2.97 0.05 -0.01 0.21 0.26
Mid-West Companies 0.91 7.46 4.09 3.37 0.09 3.28 0.06 0.00 0.24 0.30
New England Companies 1.56 7.14 3.54 3.59 0.26 3.33 0.88 -0.01 0.46 1.32
Other Comparable Companies 0.73 7.40 4.18 3.23 0.12 3.10 0.08 0.01 0.27 0.00
Comparable Group
----------------
Florida Companies
-----------------
FFFL Fidelity Bcsh MHC of FL (47.9) 0.66 7.15 4.26 2.89 0.00 2.89 0.03 0.01 0.36 0.41
Mid-Atlantic Companies
----------------------
ALLB Alliance Bank MHC of PA (19.9) 0.80 7.24 3.83 3.40 0.06 3.34 0.00 0.00 0.23 0.23
BCSB BCSB Bankcorp MHC of MD (38.6)(3) 0.89 6.68 3.56 3.12 -0.11 3.23 0.09 0.00 0.14 0.23
SKBO First Carnegie MHC of PA(45.0) 0.65 6.77 4.12 2.65 0.04 2.61 0.00 0.00 0.06 0.06
HARS Harris Fin. MHC of PA (24.9) 0.89 7.10 4.71 2.39 0.06 2.33 0.09 0.04 0.23 0.36
LFED Leeds Fed Bksr MHC of MD (36.3 1.19 7.00 4.15 2.86 0.01 2.85 0.00 0.00 0.11 0.11
LIBB Liberty Bancorp MHC of NJ (47)(1) 0.65 6.26 3.74 2.52 0.08 2.44 0.00 0.00 0.19 0.19
NBCP Niagara Bancorp of NY MHC(45.4 0.87 6.49 3.54 2.95 0.12 2.83 0.16 0.00 0.32 0.48
NWSB Northwest Bcrp MHC of PA (30.8 0.95 7.74 4.17 3.57 0.17 3.40 0.13 0.00 0.17 0.30
PBHC Pathfinder BC MHC of NY (45.2) 0.91 7.36 3.62 3.75 0.14 3.61 0.03 0.00 0.46 0.49
PHSB Ppls Home SB, MHC of PA (45.0) 0.81 7.13 3.71 3.42 0.24 3.18 0.00 0.00 0.37 0.36
PLSK Pulaski SB, MHC of NJ (47.0) 0.63 7.09 4.08 3.00 0.07 2.93 0.07 -0.01 0.05 0.11
SBFL SB Fngr Lakes MHC of NY (33.1) 0.40 7.19 4.21 2.98 0.05 2.92 0.03 -0.09 0.21 0.15
Mid-West Companies
------------------
JXSB Jcksnville SB,MHC of IL (45.6) 0.58 7.64 4.32 3.32 0.20 3.12 0.19 0.00 0.26 0.44
WAYN Wayne Svgs Bks MHC of OH (48.2 0.73 7.56 4.36 3.21 0.02 3.18 0.00 0.00 0.24 0.24
WCFB Wbstr Cty FSB MHC of IA (45.6) 1.43 7.17 3.60 3.57 0.03 3.54 0.00 0.00 0.22 0.21
New England Companies
---------------------
BRKL Brookline Bncp MHC of MA(47.0) 1.93 7.69 3.68 4.01 0.00 4.01 0.01 0.01 0.15 0.17
PBCT Peoples Bank, MHC of CT (41.2) 1.18 6.58 3.41 3.17 0.52 2.65 1.75 -0.04 0.76 2.48
South-East Companies
--------------------
GBNK Gaston Fed Bncp MHC of NC(47.0 0.79 7.66 4.10 3.56 0.24 3.32 0.12 0.00 0.18 0.30
G&A/Other Exp. Non-Op. Items Yields, Costs, and Spreads
---------------- -------------- -------------------------
MEMO: MEMO:
G&A Goodwill Net Extrao. Yield Cost Yld-Cost Assets/ Effective
Expense Amort. Gains Items On Assets Of Funds Spread FTE Emp. Tax Rate
------- ------- ------- ------- --------- -------- ------ ---------- --------
Revere Federal Savings of MA
----------------------------
June 30, 1998 2.71 0.00 0.00 0.00 7.73 4.57 3.16 3,551 39.15
SAIF-Insured Thrifts 2.19 0.02 0.05 0.00 7.53 4.74 2.79 4,232 37.09
All Public Companies 2.22 0.03 0.03 0.00 7.46 4.63 2.82 4,199 37.25
Comparable Group Average 2.20 0.02 0.12 0.00 7.43 4.64 2.79 4,436 36.66
Mid-Atlantic Companies 2.08 0.03 0.06 0.00 7.41 4.63 2.78 4,477 36.37
Mid-West Companies 2.26 0.00 0.13 0.00 7.70 4.85 2.84 3,030 37.10
New England Companies 2.65 0.02 0.42 0.00 7.46 4.29 3.16 5,922 35.32
Other Comparable Companies 2.39 0.02 0.14 0.00 7.12 4.68 2.44 4,809 39.08
Comparable Group
----------------
Florida Companies
-----------------
FFFL Fidelity Bcsh MHC of FL (47.9) 2.27 0.03 0.14 0.00 7.41 4.74 2.67 4,507 41.97
Mid-Atlantic Companies
----------------------
ALLB Alliance Bank MHC of PA (19.9) 2.38 0.00 0.00 0.00 7.49 4.34 3.15 3,637 33.40
BCSB BCSB Bankcorp MHC of MD (38.6)(3) 1.97 0.01 0.00 0.00 7.38 4.36 3.02 3,303 39.60
SKBO First Carnegie MHC of PA(45.0) 1.68 0.00 -0.17 0.00 6.98 5.05 1.93 7,796 61.56
HARS Harris Fin. MHC of PA (24.9) 1.73 0.11 0.25 0.00 7.37 5.19 2.18 4,051 37.25
LFED Leeds Fed Bksr MHC of MD (36.3 1.08 0.00 0.00 0.00 7.14 5.08 2.06 11,074 36.81
LIBB Liberty Bancorp MHC of NJ (47)(1) 1.68 0.00 0.06 0.00 7.19 4.57 2.61 4,942 36.06
NBCP Niagara Bancorp of NY MHC(45.4 2.03 0.00 0.07 0.00 7.37 4.43 2.94 3,548 35.04
NWSB Northwest Bcrp MHC of PA (30.8 2.13 0.07 0.00 0.00 7.97 4.67 3.30 2,802 36.96
PBHC Pathfinder BC MHC of NY (45.2) 2.98 0.12 0.26 0.00 7.92 4.14 3.79 2,725 30.40
PHSB Ppls Home SB, MHC of PA (45.0) 2.75 0.00 0.12 0.00 7.37 4.27 3.10 2,939 11.58
PLSK Pulaski SB, MHC of NJ (47.0) 2.03 0.00 0.00 0.00 7.30 4.79 2.52 4,059 37.98
SBFL SB Fngr Lakes MHC of NY (33.1) 2.50 0.00 0.09 0.00 7.45 4.69 2.76 2,851 39.77
Mid-West Companies
------------------
JXSB Jcksnville SB,MHC of IL (45.6) 2.89 0.00 0.31 0.00 7.98 4.93 3.05 2,020 40.22
WAYN Wayne Svgs Bks MHC of OH (48.2 2.42 0.00 0.09 0.00 7.83 4.85 2.98 2,598 34.01
WCFB Wbstr Cty FSB MHC of IA (45.6) 1.49 0.00 0.00 0.00 7.29 4.78 2.50 4,472 37.06
New England Companies
---------------------
BRKL Brookline Bncp MHC of MA(47.0) 1.22 0.00 0.01 0.00 7.80 4.79 3.01 9,182 35.07
PBCT Peoples Bank, MHC of CT (41.2) 4.08 0.04 0.83 0.00 7.12 3.80 3.32 2,663 35.57
South-East Companies
--------------------
GBNK Gaston Fed Bncp MHC of NC(47.0 2.52 0.00 0.14 0.00 6.83 4.62 2.21 5,110 36.19
(1) Financial information is for the quarter ending December 31, 1997.
(3) Income and expense information has been annualized from available financial
information.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP Financial, LC.
Page 3.10
Group. Non-operating items reflected income of 0.12 percent of average assets
for the Peer Group, while the Bank did not recorded any such income or expense.
The Bank's slightly stronger net interest margin resulted primarily from
maintaining a higher interest income ratio, offset by higher interest expense.
Revere Federal's higher interest income ratio was supported by maintaining a
higher level of interest-earning assets as a percent of total assets (98.0
percent versus 96.5 percent for the Peer Group), as well as a higher yield
earned on interest-earning assets (7.73 percent versus 7.43 percent for the Peer
Group). Revere Federal's higher yield earned on interest-earning assets was
supported by similar level of lending diversification into higher yielding and
higher risk types of lending, along with a substantial balance of higher
yielding fixed rate residential loans held in portfolio. The higher interest
expense ratio reported by the Bank was affected by the higher level of
interest-bearing liabilities maintained by the Bank (92.6 percent versus 84.2
percent for the Peer Group), offset by a slightly lower cost of funds (4.57
percent versus 4.64 percent for the Peer Group). Following the infusion of stock
proceeds, the Bank's comparative advantage with respect to maintaining a lower
interest expense ratio should increase due to the decline in the level of
interest-bearing liabilities being utilized to fund assets. Overall, Revere
Federal and the Peer Group reported net interest income to average assets ratios
of 3.35 percent and 3.18 percent, respectively.
In another key area of core earnings strength, the Bank maintained a higher
level of operating expenses than the Peer Group. For the period covered in Table
3.3, the Bank and the Peer Group recorded operating expense to average assets
ratios of 2.71 percent and 2.22 percent, respectively. Revere Federal's higher
operating expense ratio can in part be explained by its maintenance of a higher
number of employees for its asset size, as compared to the Peer Group companies
on average. Assets per full time equivalent employee equaled $3.6 million for
the Bank, versus a comparative measure of $4.4 million for the Peer Group.
Factors contributing to the Bank's relatively high staffing needs include
maintaining a fairly diversified operating strategy, including the recently
staffed commercial loan department. On a post-offering basis, the Bank's
operating expenses can be expected to increase with the addition of public
company reporting expenses and stock benefit plans, with such expenses already
impacting the Peer Group's operating expenses. At the same time, given the
Bank's recent history of strong growth, the additional capital realized from the
minority stock offering will support further growth and facilitate leveraging of
the Bank's existing operating expenses.
When viewed together, net interest income and operating expenses provide
considerable insight into a thrift's earnings strength, since those sources of
income and expenses are typically the most prominent components of earnings and
are generally more predictable than losses and gains realized from the sale of
assets or other non-recurring activities. In this regard, as measured by their
expense coverage ratios (net interest income divided by operating expenses), the
Bank's earnings strength was less than the Peer Group's. Expense coverage ratios
posted by Revere Federal and the Peer Group equaled 1.24x and 1.43x,
respectively. An expense coverage
RP Financial, LC.
Page 3.11
ratio of greater than 1.0x indicates that an institution is able to sustain
pre-tax profitability without having to rely on non-interest sources of income.
Sources of non-interest operating income were a lower contributor to the
Bank's earnings in comparison to the Peer Group, with such income amounting to
0.17 percent and 0.39 percent of Revere Federal's and the Peer Group's average
assets, respectively. Taking non-interest operating income into account in
comparing the Bank's and the Peer Group's earnings, Revere Federal's efficiency
ratio (operating expenses, net of amortization of intangibles, as a percent of
the sum of non-interest operating income and net interest income) of 77.0
percent was less favorable than the Peer Group's efficiency ratio of 62.2
percent.
Loss provisions were a larger factor in the Bank's earnings, amounting to
0.22 percent and 0.10 percent of average assets for Revere Federal and the Peer
Group, respectively. Overall, the level of loan loss provisions established by
the Bank and the Peer Group were indicative of low credit risk operating
strategies, which, in turn, have provided generally favorable credit quality
measures for the Bank and the Peer Group.
Net gains realized from the sale of investments and loans were a larger
factor in the Peer Group's earnings, with such gains amounting to 0.12 percent
and 0.00 percent of average assets for the Peer Group and Revere Federal,
respectively. Such gains are subject to notable volatility due to fluctuations
in market and other interest rates, and, thus are not viewed as being a
recurring source of income for the Peer Group. Accordingly, the net gains
reflected in the Peer Group's earnings will be discounted in evaluating the
relative strengths and weaknesses of their respective earnings. Extraordinary
items were not a factor in either the Bank's or the Peer Group's earnings.
The Bank's and the Peer Group's pre-tax earnings were similarly impacted by
taxes, with Revere Federal and the Peer Group posting effective tax rates of
39.2 percent and 36.7 percent, respectively.
Loan Composition
Table 3.4 presents data related to the loan composition of Revere Federal
and the Peer Group. In comparison to the Bank, the Peer Group's portfolio
composition reflected a lower concentration of 1-4 family permanent mortgage
loans and mortgage-backed securities (78.7 percent versus 82.0 percent for the
Bank). The Bank's higher ratio was the result of maintaining a higher
concentration of mortgage-backed securities. While the Peer Group companies were
viewed as being primarily portfolio lenders, a couple of the Peer Group
companies maintained significant balances of loans serviced for others (Peoples
Bank of CT and Harris SB of PA). The Peer Group's average balance of loans
serviced for others equaled $220.3 million, or 20.9 percent of average assets,
which represents a recurring source of non-interest operating income similar to
the Bank's level
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.4
Loan Portfolio Composition and Related Information
Comparable Institution Analysis
As of March 31, 1998
Portfolio Composition as a Percent of MBS and Loans
---------------------------------------------------------
1-4 Constr. 5+Unit Commerc. RWA/ Serviced Servicing
Institution MBS Family & Land Comm RE Business Consumer Assets For Others Assets
- ----------- ------ ------ ------ ------ ------ -------- ------ ---------- ------
(%) (%) (%) (%) (%) (%) (%) ($000) ($000)
Revere Federal Savings of MA 31.60 50.39 2.22 6.07 4.07 6.47 39.87 18,417 0
SAIF-Insured Thrifts 15.10 62.60 5.61 11.08 6.16 1.63 54.20 443,816 4,411
All Public Companies 15.13 61.08 5.06 12.87 5.83 1.91 54.95 481,846 5,682
Comparable Group Average 12.71 65.94 2.54 7.82 8.73 3.00 51.95 220,348 1,514
Comparable Group
- ----------------
ALLB Alliance Bank MHC of PA (19.9) 3.71 78.68 1.70 11.00 3.69 0.00 43.60 661 0
BCSB BCSB Bankcorp MHC of MD (38.6) NA NA NA NA NA NA 60.96 6,945 0
BRKL Brookline Bncp MHC of MA(47.0) NA NA NA NA NA NA NA 1,274 0
FFFL Fidelity Bcsh MHC of FL (47.9) 17.25 66.22 8.91 5.23 4.66 2.20 56.68 64,209 394
SKBO First Carnegie MHC of PA(45.0) NA NA NA NA NA NA 32.34 48 0
GBNK Gaston Fed Bncp MHC of NC(47.0 NA NA NA NA NA NA 36.53 0 0
HARS Harris Fin. MHC of PA (24.9) 14.86 68.71 2.01 5.73 8.53 0.04 57.82 1,203,049 13,370
JXSB Jcksnville SB,MHC of IL (45.6) 10.91 57.54 0.98 9.10 16.55 4.96 69.62 100,667 498
LFED Leeds Fed Bksr MHC of MD (36.3 13.79 83.08 1.20 0.88 2.09 0.00 49.26 0 0
LIBB Liberty Bancorp MHC of NJ (47)(1) NA NA NA NA NA NA 48.67 337 0
NBCP Niagara Bancorp of NY MHC(45.4 NA NA NA NA NA NA 55.19 129,000 0
NWSB Northwest Bcrp MHC of PA (30.8 4.40 73.72 3.56 2.88 12.06 4.62 50.82 89,703 0
PBHC Pathfinder BC MHC of NY (45.2) 15.44 63.13 1.51 11.73 2.76 5.74 60.51 0 0
PBCT Peoples Bank, MHC of CT (41.2) 0.01 46.87 4.02 13.79 22.51 12.16 81.15 2,541,696 14,500
PHSB Ppls Home SB, MHC of PA (45.0) NA NA NA NA NA NA 43.76 0 0
PLSK Pulaski SB, MHC of NJ (47.0) NA NA NA NA NA NA 43.17 0 0
SBFL SB Fngr Lakes MHC of NY (33.1) 32.74 43.28 0.89 8.61 12.10 2.70 43.37 11,267 0
WAYN Wayne Svgs Bks MHC of OH (48.2 0.19 86.35 3.11 6.60 5.46 0.59 54.78 37,765 0
WCFB Wbstr Cty FSB MHC of IA (45.6) 26.50 57.70 0.07 10.43 5.61 0.00 46.88 0 0
(1) Financial information is for the quarter ending December 31, 1997.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP Financial, LC.
Page 3.13
of 20.7 percent of assets. Revere Federal's loans serviced for others totaled
$18.4 million. With the exception of Peoples Bank and Harris SB, loan servicing
intangibles were not a significant balance sheet item for the Peer Group
companies.
As indicated by the higher percentages of 1-4 family loans and
mortgage-backed securities maintained by Revere Federal, the Bank exhibited a
slightly lower degree of lending diversification into higher risk types of
loans. Revere Federal's lending diversification has consisted primarily of
commercial real estate and commercial business loans (10.1 percent of loans and
MBS), followed by consumer loans (6.5 percent of loans and MBS). Commercial
business and commercial real estate/multi-family loans also represented the
primary areas of lending diversification for the Peer Group, totaling 16.6
percent of the Peer Group's loan and MBS portfolio, respectively. Construction
and land loans were a similar, and more minor area of lending diversification
for the Bank and Peer Group, with such loans equaling 2.2 percent and 2.5
percent of Revere Federal's and the Peer Group's loan and MBS portfolios,
respectively. Revere Federal's risk weighted assets-to-assets ratio of 39.87
percent was lower than the Peer Group's ratio of 51.95 percent, as the
comparability of the Bank's and the Peer Group's risk weighted assets-to-assets
ratios indicates that the Revere Federal's higher proportion of MBS reduced the
risk-weighted assets ratio. Overall, the Bank's and the Peer Group's risk
weighted assets-to-assets ratios were both lower than the comparative ratio of
55.5 percent for all publicly-traded thrifts.
Credit Risk
Overall, the Peer Group's credit risk exposure appeared to be somewhat
higher than the Bank's, although with both the Bank's and the Peer Group's
credit quality measures being representative of fairly limited credit risk
exposure. As shown in Table 3.5, the Peer Group's ratio of non-performing
assets-to-assets (REO, non-accruing loans and accruing loans more than 90 days
past due) was higher than the Bank's ratio (0.52 percent versus 0.30 percent for
the Bank). In addition, the Peer Group's non-performing loans-to-loans ratio was
higher than the Bank's ratio (0.58 percent versus 0.31 percent for the Bank),
since that measure does not include accruing loans that are more than 90 days
past due. Accruing loans that are more than 90 days past due accounted for 46.1
percent of the Bank's non-accruing loans and accruing loans that are more than
90 days past due, as of June 30, 1998. Loss reserve ratios were generally
stronger for the Bank, as Revere Federal maintained a higher level of loss
reserves as a percent of non-performing assets (188.1 percent versus 157.33
percent for the Peer Group) and as percent of loans (1.08 percent versus 0.88
percent for the Peer Group). Net loan charge-offs were a comparable factor in
the Bank's and the Peer Group's earnings, equaling 0.10 percent of loans
receivable for both.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.5
Credit Risk Measures and Related Information
Comparable Institution Analysis
As of March 31, 1998 or Most Recent Date Available
NPAs & Rsrves/
REO/ 90+Del/ NPLs/ Rsrves/ Rsrves/ NPAs & Net Loan NLCs/
Institution Assets Assets Loans Loans NPLs 90+Del Chargoffs Loans
- ----------- ------ ------ ------ ------ ------ -------- --------- ----------
(%) (%) (%) (%) (%) (%) ($000) (%)
Revere Federal Savings of MA 0.00 0.30 0.31 1.08 348.97 188.10 46 0.10
SAIF-Insured Thrifts 0.25 0.59 0.64 0.80 202.56 149.32 267 0.09
All Public Companies 0.23 0.60 0.67 0.87 206.31 159.02 297 0.09
Comparable Group Average 0.17 0.52 0.58 0.88 190.77 157.33 494 0.10
Comparable Group
- ----------------
ALLB Alliance Bank MHC of PA (19.9) 0.82 1.06 0.31 0.88 278.91 45.21 300 0.78
BCSB BCSB Bankcorp MHC of MD (38.6) 0.06 NA 0.53 0.56 106.92 NA 2 0.00
BRKL Brookline Bncp MHC of MA(47.0) 0.28 0.60 0.51 2.37 465.41 251.07 0 0.00
FFFL Fidelity Bcsh MHC of FL (47.9) 0.06 0.27 0.34 0.34 99.40 78.51 103 0.05
SKBO First Carnegie MHC of PA(45.0) 0.00 0.59 NA 0.80 NA 64.19 0 0.00
GBNK Gaston Fed Bncp MHC of NC(47.0 0.12 0.50 0.55 0.96 174.10 132.06 0 0.00
HARS Harris Fin. MHC of PA (24.9) 0.33 0.66 0.83 0.97 117.59 60.54 354 0.15
JXSB Jcksnville SB,MHC of IL (45.6) 0.17 0.68 0.68 0.59 87.67 65.11 93 0.29
LFED Leeds Fed Bksr MHC of MD (36.3 0.00 0.03 0.05 0.29 560.82 560.82 0 0.00
LIBB Liberty Bancorp MHC of NJ (47)(1) 0.05 0.35 0.47 0.45 95.89 82.98 0 0.00
NBCP Niagara Bancorp of NY MHC(45.4 0.00 0.29 0.57 1.07 189.19 188.17 84 0.05
NWSB Northwest Bcrp MHC of PA (30.8 0.14 0.50 0.48 0.82 169.80 123.26 462 0.00
PBHC Pathfinder BC MHC of NY (45.2) 0.58 1.30 1.09 0.63 57.58 32.06 15 0.00
PBCT Peoples Bank, MHC of CT (41.2) 0.15 0.70 1.00 1.72 172.09 156.79 7,800 0.55
PHSB Ppls Home SB, MHC of PA (45.0) 0.00 0.32 0.66 1.31 199.84 173.78 162 0.00
PLSK Pulaski SB, MHC of NJ (47.0) 0.04 0.63 1.11 0.97 87.69 82.57 0 0.00
SBFL SB Fngr Lakes MHC of NY (33.1) 0.06 0.32 0.52 0.89 171.61 141.95 13 0.04
WAYN Wayne Svgs Bks MHC of OH (48.2 0.34 0.49 0.17 0.36 208.50 58.18 0 0.00
WCFB Wbstr Cty FSB MHC of IA (45.6) 0.05 0.07 NA 0.69 NA 534.72 0 0.00
(1) Financial information is for the quarter ending December 31, 1997.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP Financial, LC.
Page 3.15
Interest Rate Risk
Table 3.6 reflects various key ratios highlighting the relative interest
rate risk exposure of the Bank versus the Peer Group companies. In terms of
balance sheet composition, Revere Federal's interest rate risk characteristics
were considered to be slightly less favorable than the Peer Group's. In
particular, Revere Federal's lower capital position and lower IEA/IBL ratio
indicate a greater dependence on the yield-cost spread to sustain the net
interest margin. However, Revere Federal's lower level of non-interest earning
assets was a positive consideration in terms of capacity to generate interest
income. On a pro forma basis, the infusion of stock proceeds should serve to
increase the Bank's equity-to-assets ratio and IEA/IBL ratio to levels that are
comparable to the comparative Peer Group ratios.
To analyze interest rate risk associated with the net interest margin, we
reviewed quarterly changes in net interest income as a percent of average assets
for Revere Federal and the Peer Group. In general, the relative fluctuations in
both the Bank's and the Peer Group's net interest income to average assets
ratios were considered to be fairly limited and, thus, based on the interest
rate environment that prevailed during the period covered in Table 3.6, neither
Revere Federal or the Peer Group were viewed as having significant interest rate
risk exposure in their respective net interest margins. Revere Federal reported
generally positive trends in the net interest margin in recent periods, as
interest income increased due to higher loan yields. The stability of the Bank's
net interest margin should be enhanced by the infusion of stock proceeds, as
interest rate sensitive liabilities will be funding a lower portion of Revere
Federal's assets.
Summary
Based on the above analysis, RP Financial concluded that the Peer Group
forms a reasonable basis for determining the pro forma market value of Revere
Federal. Due to the limited number of publicly-traded MHCs in today's market,
there are some significant differences between the Bank and certain Peer Group
members. Those areas where substantial differences exist, such as disparate
asset sizes, different market areas, market capitalization and other variations
will be addressed in the form of valuation adjustments to the extent necessary.
For these reasons, and because the Peer Group members all share the unique
characteristics of mutual holding company ownership, RP Financial concluded that
the Peer Group pricing (full conversion basis) will serve as a sound basis in
deriving a pro forma market value for Revere Federal.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.6
Interest Rate Risk Measures and Net Interest Income Volatility
Comparable Institution Analysis
As of March 31, 1998 or Most Recent Date Available
Balance Sheet Measures
--------------------------
Non-Earn. Quarterly Change in Net Interest Income
----------------------------------------------------------
Equity/ IEA/ Assets/
Institution Assets IBL Assets 03/31/98 12/31/97 09/30/97 06/30/97 03/31/97 12/31/96
- ----------- ------ ------ ------ -------- -------- -------- -------- -------- --------
(%) (%) (%) (change in net interest income is annualized in basis points)
Revere Federal Savings of MA 7.2 105.8 2.0 19 12 -6 N/A N/A N/A
SAIF-Insured Thrifts 13.1 115.1 3.2 -0 -3 -4 2 0 5
All Public Companies 12.8 114.7 3.3 -1 -3 -4 1 0 5
Comparable Group Average 12.0 116.8 3.4 -5 -9 1 -3 7 4
Comparable Group
- ----------------
ALLB Alliance Bank MHC of PA (19.9) 10.7 109.6 2.9 -24 11 -2 11 11 4
BCSB BCSB Bankcorp MHC of MD (38.6) 9.9 110.9 1.9 -12 NA NA NA NA NA
BRKL Brookline Bncp MHC of MA(47.0) 33.2 151.7 1.3 -4 -1 4 -41 NA NA
FFFL Fidelity Bcsh MHC of FL (47.9) 6.5 107.8 3.8 -13 -25 -6 -13 -3 -5
SKBO First Carnegie MHC of PA(45.0) 16.9 118.8 3.1 1 2 -4 14 30 NA
GBNK Gaston Fed Bncp MHC of NC(47.0 7.5 185.5 1.5 -72 -8 6 12 NA NA
HARS Harris Fin. MHC of PA (24.9) 7.3 106.5 3.8 40 -28 -8 1 -12 28
JXSB Jcksnville SB,MHC of IL (45.6) 10.4 109.1 4.1 17 -22 11 -30 7 4
LFED Leeds Fed Bksr MHC of MD (36.3 16.5 119.9 2.4 -5 -1 -11 4 11 6
LIBB Liberty Bancorp MHC of NJ (47)(1) 7.6 106.9 1.6 NA -32 6 -2 NA NA
NBCP Niagara Bancorp of NY MHC(45.4 10.1 110.6 2.7 -12 -2 -8 -3 8 NA
NWSB Northwest Bcrp MHC of PA (30.8 7.9 107.9 2.9 8 -13 -19 7 7 -3
PBHC Pathfinder BC MHC of NY (45.2) 10.0 106.1 7.3 -14 -12 5 4 20 NA
PBCT Peoples Bank, MHC of CT (41.2) 7.9 99.3 11.1 18 -34 23 -30 11 31
PHSB Ppls Home SB, MHC of PA (45.0) 12.8 112.1 3.1 -17 4 28 0 NA NA
PLSK Pulaski SB, MHC of NJ (47.0) 11.5 110.6 2.9 -1 -2 9 19 -12 -6
SBFL SB Fngr Lakes MHC of NY (33.1) 8.7 106.8 3.5 -7 2 -5 -3 -13 5
WAYN Wayne Svgs Bks MHC of OH (48.2 9.4 107.0 3.8 -4 -5 4 6 -5 -4
WCFB Wbstr Cty FSB MHC of IA (45.6) 24.0 132.0 1.6 7 4 -9 -9 31 -14
(1) Financial information is for the quarter ending December 31, 1997.
NA=Change is greater than 100 basis points during the quarter.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP Financial, LC.
Page 4.1
IV. VALUATION ANALYSIS
Introduction
This chapter presents the valuation analysis and methodology used to
determine Revere Federal's estimated pro forma market value for purposes of
pricing the minority stock. The valuation incorporates the appraisal methodology
promulgated by the OTS for standard conversions and mutual holding company
offerings, particularly regarding selection of the Peer Group, fundamental
analysis on both the Bank and the Peer Group, and determination of the Bank's
pro forma market value utilizing the market value approach.
Appraisal Guidelines
The OTS written appraisal guidelines, originally released in October 1983
and updated in late-1994, specify the market value methodology for estimating
the pro forma market value of an institution. As previously noted, the appraisal
guidelines for MHC offerings is somewhat different, particularly in the Peer
Group selection process. Specifically, the regulatory agencies have indicated
that the Peer Group should be based on the pro forma fully-converted pricing
characteristics of publicly-traded MHCs, rather than on already fully-converted
publicly-traded stock thrifts, given the unique differences in stock pricing of
MHCs and fully-converted stock thrifts. Pursuant to this methodology: (1)ya peer
group of comparable publicly-traded institutions is selected; (2)ya financial
and operational comparison of the subject company to the peer group is conducted
to discern key differences; and (3)ythe pro forma market value of the subject
company is determined based on the market pricing of the peer group, subject to
certain valuation adjustments based on key differences.
RP Financial Approach to the Valuation
The valuation analysis herein complies with such regulatory approval
guidelines. Accordingly, the valuation incorporates a detailed analysis based on
the Peer Group, discussed in Chapter III, which constitutes "fundamental
analysis" techniques. The valuation incorporates a "technical analysis" of
recently completed stock offerings of comparable MHCs, including the aftermarket
trading of such offerings. In this regard, there has been limited new MHC
activity, so this analysis is rather limited. It should be noted that these
valuation analyses, based on either the Peer Group or the recent MHC
transactions, cannot possibly fully account for all the market forces which
impact trading activity and pricing characteristics of a stock on a given day.
The pro forma market value determined herein is a preliminary value for the
Bank's to-be-issued stock. Throughout the MHC process, RP Financial will: (1)
review changes in the Bank's operations and financial condition; (2) monitor the
Bank's operations and financial condition relative to the Peer Group to identify
any
RP Financial, LC.
Page 4.2
fundamental changes; (3) monitor the external factors affecting value including,
but not limited to, local and national economic conditions, interest rates, and
the stock market environment, including the market for thrift stocks; and
(4) monitor pending MHC offerings, and to a lesser extent, conversion offerings,
both regionally and nationally. If material changes should occur prior to
closing the offering, RP Financial will evaluate, in conjunction with the Bank,
if updated valuation reports should be prepared reflecting such changes and
their related impact on value, if any. RP Financial will also prepare a final
valuation update at the closing of the offering to determine if the prepared
valuation analysis and resulting range of value continues to be appropriate.
The appraised value determined herein is based on the current market and
operating environment for the Bank and for all thrifts. Subsequent changes in
the local and national economy, the legislative and regulatory environment, the
stock market, interest rates, and other external forces (such as natural
disasters or major world events), which may occur from time to time (often with
great unpredictability) may materially impact the market value of all thrift
stocks, including Revere Federal, the market value of the stocks of public MHC
institutions, or Revere Federal's value alone. To the extent a change in factors
impacting the Bank's value can be reasonably anticipated and/or quantified, RP
Financial has incorporated the estimated impact into its analysis.
Valuation Analysis
A fundamental analysis discussing similarities and differences relative to
the Peer Group was presented in Chapter III. The following sections summarize
the key differences between the Bank and the Peer Group and how those
differences affect the pro forma valuation. Emphasis is placed on the specific
strengths and weaknesses of the Bank relative to the Peer Group in such key
areas as financial condition, profitability, growth and viability of earnings,
asset growth, primary market area, dividends, liquidity of the shares, marketing
of the issue, management, and the effect of government regulations and/or
regulatory reform. We have also considered the market for thrift stocks, in
particular new issues, to assess the impact on value of Revere Federal coming to
market at this time.
1. Financial Condition
The financial condition of an institution is an important determinant in pro
forma market value, because investors typically look to such factors as
liquidity, capital, asset composition and quality, and funding sources in
assessing investment attractiveness. The similarities and differences in the
Bank's and the Peer Group's financial strength are noted as follows:
o Overall A/L Composition. Loans funded by retail deposits were the
primary components of both Revere Federal's and the Peer Group's
balance sheets. The Peer Group's interest-earning asset composition
exhibited a higher concentration of loans, while the Bank reported a
higher
RP Financial, LC.
Page 4.3
proportion of investment in MBS. The Peer Group reported greater loan
portfolio diversification into higher risk types of loans. Overall,
these characteristics translated into a higher risk weighted
assets-to-asset ratio for the Peer Group. Revere Federal's funding
composition reflected a lower concentration of deposits and a higher
concentration of borrowings relative to the comparative Peer Group
ratios. Overall, as a percent of assets, the Bank maintained a higher
level of interest-earning assets but a much higher level of
interest-bearing liabilities, which resulted in a more favorable
IEA/IBL ratio for the Peer Group. However the infusion of stock
proceeds will serve to address the Bank's lower IEA/IBL ratio. For
valuation purposes, RP Financial concluded no adjustment was warranted
for the Bank's overall asset/liability composition.
o Credit Quality. Both the Bank's and the Peer Group's credit quality
measures were indicative of fairly limited credit risk exposure. The
Bank maintained lower levels of non-performing assets as a percent of
total assets, along with a higher level of loss reserves as percent of
non-performing assets and as a percent of loans. The Peer Group's
greater diversification into higher risk types of lending was offset
by the relativley unseasoned nature of Revere Federal's commercial
real estate and commercial business loan portfolios. Overall, in light
of the Bank's generally higher reserve levels and a lower
risk-weighted assets-assets ratios, the credit risk exposure
associated with Revere Federal's balance sheet was viewed as being
slightly less than the Peer Group's and, thus, RP Financial concluded
that a slight upward adjustment was warranted for the Bank's credit
quality.
o Balance Sheet Liquidity. The Bank operated with a higher level of cash
and investment securities relative to the Peer Group (20.9 percent of
assets versus 24.5 percent for the Peer Group), although a substantial
majority of Revere Federal's investment portfolio is classified as
HTM. In addition, Revere Federal's MBS portfolio is also classified as
HTM. The Bank's future borrowing capacity was considered to be less
than the Peer Group's, in light of the higher level of borrowings
currently maintained by the Bank. Overall, balance sheet liquidity for
the Bank was considered to be slightly less favorable for the Bank
and, thus, RP Financial concluded that a slight downward adjustment
was warranted for the Bank's balance sheet liquidity.
o Funding Liabilities. Retail deposits served as the primary
interest-bearing source of funds for the Bank and the Peer Group, with
borrowings being utilized to a higher degree by the Bank than the Peer
Group. Overall, the Bank currently maintains a higher level of
interest-bearing liabilities than the Peer Group (92.6 percent of
assets versus 84.2 percent for the Peer Group), which was attributable
to Revere Federal's lower capital position. Following the stock
offering, the increase in Revere Federal's capital position will
address the lower level of interest-bearing liabilities currently
maintained by the Peer Group. Accordingly, RP Financial concluded that
no adjustment was warranted for Revere Federal's funding composition.
RP Financial, LC.
Page 4.4
o Capital. The Bank operates with a lower pre-conversion capital ratio
than the Peer Group, 7.2 percent and 12.0 percent of assets,
respectively. This disadvantage will be addressed by the stock
offering, which will provide Revere Federal with a pro forma capital
position that can be expected to be comparable to the Peer Group's
equity-to-assets ratio. Accordingly, RP Financial concluded that no
adjustment was warranted for the Bank's capital position.
On balance, the characteristics of the Bank's and the Peer Group's financial
conditions were not materially different in most respects for valuation
purposes. Accordingly, we concluded that no valuation adjustment was warranted
for the Bank's financial strength.
2. Profitability, Growth and Viability of Earnings
Earnings are a key factor in determining pro forma market value, as the
level and risk characteristics of an institution's earnings stream and the
prospects and ability to generate future earnings heavily influence the multiple
the investment community will pay for earnings. The major factors considered in
the valuation are described below.
o Reported Earnings. The Bank recorded lower earnings on a ROAA basis
(0.36 percent of average assets versus 0.89 percent for the Peer
Group). The Bank reported no non-operating income or expense items,
while the Peer Group reported a minor level of non-operating income.
Exclusive of the gains, the Peer Group's earnings remained stronger
than the Bank's. The Peer Group's stronger earnings resulted from
maintenance of a lower level of operating expenses and a higher level
of non-interest income, which was partially offset by the Bank's
higher net interest margin. Revere Federal also recorded higher loan
loss provisions over the most recent 12 month period. Reinvestment of
stock proceeds into interest-earning assets will serve to increase the
Bank's earnings, with the benefit of reinvesting proceeds expected to
be somewhat offset by higher operating expenses associated with
operating as a stock institution and the implementation of the stock
benefit plans. Overall, a moderate downward adjustment to the Bank's
valuation was warranted for this factor, as Revere Federal's lower
reported earnings were substantially below the Peer Group levels.
o Core Earnings. Both the Bank's and the Peer Group's earnings were
derived largely from recurring sources, including net interest income,
operating expenses, and non-interest operating income. In these
measures, the Bank operated with a slighlty higher net interest
margin, a higher operating expense ratio and a lower level of
non-interest operating income. These items translated into a lower
expense coverage ratio (1.24x versus 1.43x for the Peer Group).
Likewise, due to the Bank's higher level of operating expenses, the
Peer Group's efficiency ratio was more favorable than the Bank's (62.2
percent versus 77.0 percent for the Bank). Loss provisions had a
greater impact on the Bank's earnings, even though the Peer Group
exhibited comparatively lower reserve coverage ratios than the Bank's
measures. Overall, these measures, notwithstanding the expected
earnings benefits the Bank should realized from the redeployment of
stock proceeds into interest-earning assets, which will somewhat be
negated by expenses associated with the stock benefit plans and
operating as a stock institution, indicate that Revere Federal's core
earnings were not as strong as Peer Group's and a moderate downward
adjustment was warranted for the Bank's core earnings.
o Interest Rate Risk. Quarterly changes in the Bank's and the Peer
Group's net interest income to average assets ratios indicated a
similar degree of interest rate risk exposure in their respective
RP Financial, LC.
Page 4.5
net interest margins, with both the Bank's and the Peer Group's net
interest margins exhibiting fairly limited quarterly fluctuations
during the most recent twelve month period. Other measures of interest
rate risk, such as capital ratios, IEA/IBL ratios, and the level of
non-interest earning assets-to-total assets were generally more
favorable for the Peer Group, although the Bank maintained a lower
level of non-interest earning assets as compared to the Peer Group's
ratio. On a pro forma basis, the infusion of stock proceeds can be
expected to address the Bank's lower capital position and lower
IEA/IBL ratio, as well as enhance the stability of the Bank's net
interest margin through the reinvestment of stock proceeds into
interest-earning assets. Accordingly, RP Financial concluded that the
interest rate risk associated with the Bank's earnings was comparable
to the Peer Group's, and no adjustment was warranted for valuation
purposes.
o Credit Risk. Over the most recent twelve month period, loan loss
provisions were a higher factor in Revere Federal's earnings in
comparison to the Peer Group. Lending diversification into higher risk
types of loans was more notable for the Peer Group, although the
Bank's portfolio of higher risk loans was relatively unseasoned,
indicating higher future potential risk. The Peer Group's
interest-earning asset composition reflected a higher concentration of
loans and cash and investments, offset by a lower level of MBS. The
Peer Group's credit quality measures were considered to be less
favorable than Revere Federal's, based on the Peer Group's lower level
of loss reserves as a percent of problem assets and total loans.
Overall, RP Financial concluded that the credit risk exposure
associated with the Bank's earnings was similar to the Peer Group's,
and no adjustment was warranted for valuation purposes.
o Earnings Growth Potential. Several factors were considered in
assessing earnings growth potential. The higher expected pro forma
capital position is expected to enable the Bank to continue expansion
in the asset base. The expected continued emphasis on higher risk
lending such as commercial real estate and commercial business lending
should provide additional earnings growth. However, expectations of
continued growth in operating expenses and the relatively uncertain
cost of acquiring new deposit funds for lending result in the Bank's
earnings appearing to have less upside potential than the Peer Group.
o Return on Equity. Following the infusion of stock proceeds, the Bank's
pro forma capital position will be comparable to or higher than the
Peer Group's equity-to-assets ratio. Likewise, as the result of the
increase in the Bank's capital position, Revere Federal's pro forma
ROE is expected to be lower than the Peer Group's ROE. Therefore, RP
Financial concluded that a slight down adjustment was warranted for
the Bank's ROE.
Overall, Revere Federal's earnings characteristics were considered to be
less favorable than the Peer Group's. Accordingly, RP Financial concluded that a
moderate downward valuation adjustment was warranted for profitability, growth
and viability of the Bank's earnings.
3. Asset Growth
Revere Federal exhibited a lower asset growth rate than the Peer Group
during the period covered in our comparative analysis (positive 2.9 percent
versus positive 14.2 percent for the Peer Group). While the Bank's current
capacity to sustain a higher growth rate than the Peer Group is somewhat limited
by its lower capital
RP Financial, LC.
Page 4.6
position, Revere Federal's pro forma capital position will provide the Bank with
comparable leverage capacity as maintained by the Peer Group. On balance, we
believe no adjustment was warranted for this factor.
4. Primary Market Area
The general condition of a financial institution's market area has an
impact on value, as future success is in part dependent upon opportunities for
profitable activities in the local market area. Operating in the northern Boston
metropolitan area, the Bank faces significant competition for loans and deposits
from larger financial institutions, who provide a broader array of services and
have significantly larger branch networks than maintained by the Bank. Revere
Federal's primary market area for deposits and loans is considered to be the
city of Revere and contiguous areas. Demographic trends in the local market area
indicate a relatively stable environment for the Bank's primary market area, as
measured by slight population and household declines during the 1990s. Per
capita and household income measures indicate that the Bank operates in a
relatively moderate income market area in comparison to statewide averages,
which is viewed as a limiting factor in terms of supporting growth
opportunities.
In general, the Peer Group companies operate in less populous markets than
served by the Bank. Population growth rates in the markets served by the Peer
Group companies were on average more favorable than the primary market area
served by the Bank. On average, the Peer Group companies maintained a larger
deposit market share than the Bank, indicating a competitive advantage for the
Peer Group companies in terms of the degree of competition faced for deposits.
Summary demographic and deposit market share data for the Bank and the Peer
Group companies is provided in Table 4.1. Overall, the faster growing market
area and competitive advantage maintained by the Peer Group companies in terms
of deposit market share served by the Peer Group resulted in a comparable
advantage for the Peer Group. However, the larger population base available to
the Bank in the local market area offsets these other factors. Therefore, we
concluded that no adjustment was warranted for the Bank's primary market area.
5. Dividends
While the Board has not indicated its intention to commence payment of a
cash dividend following the stock offering, Revere Federal's pro forma
capitalization and profitability would position the Bank to have the capacity to
pay cash dividends. Future declarations of dividends by the Board of Directors
will depend upon a number of factors, including investment opportunities, growth
objectives, financial condition, profitability, tax considerations, minimum
capital requirements, regulatory limitations, stock market characteristics and
general economic conditions. As publicly-traded thrifts' capital levels and
profitability have improved and as weak institutions have been resolved, the
proportion of institutions with cash dividend policies has increased. Fifteen
RP Financial, LC.
Table 4.1
Peer Group Market Area Comparative Analysis
Per Capita Income
Population Proj. ----------------- Deposit
----------------- Pop. 1990-97 1997-2002 % State Market
Institution County 1990 1997 2002 % Change % Change Median Age Amount Average Share(1)
- ----------- ------ ---- ---- ---- -------- -------- ---------- ------ ------- --------
(000) (000)
Alliance Bank MHC of PA Delaware 548 547 547 -0.1% -0.1% 36.6 22,326 123.9% 2.7%
BCSB Bankcorp MHC of MD Baltimore 692 724 743 4.7% 2.6% 37.4 21,564 100.1% 2.0%
Brookline Bncrp MHC of MA Norfolk 616 641 658 4.0% 2.7% 36.8 24,273 119.5% 5.2%
Fidelity FSB, MHC of FL Palm Beach 864 1,012 1,115 17.2% 10.1% 40.9 21,754 126.2% 3.8%
First Carnegie MHC of PA Allegheny 1,336 1,286 1,252 -3.8% -2.6% 38.8 18,708 103.9% 0.2%
Gaston Bancorp MHC of NC Gaston 175 184 190 5.0% 3.3% 35.0 17,027 97.2% 9.6%
Harris SB MHC of PA Dauphin 238 248 255 4.2% 2.8% 37.4 18,993 105.4% 6.6%
Jacksonville SB MHC of IL Morgan 36 36 36 -0.4% -0.3% 36.1 16,672 84.5% 19.7%
Leeds FSB MHC of MD Baltimore 692 721 741 4.2% 2.8% 37 21,680 102.1% 2.0%
Liberty Bancorp MHC of NJ MIddlesex 672 714 740 6.3% 3.7% 35.3 24,920 102.2% 1.0%
Niagara Bancorp MHC of NY Niagara 221 221 221 0.1% 0.1% 36.2 13,239 71.5% 13.9%
Northwest Bancorp MHC of PA Warren 45 44 44 -1.2% -0.9% 38.3 15,543 86.3% 26.6%
Pathfinder BC MHC of NY Oswego 122 126 128 3.1% 2.1% 32.1 12,294 66.4% 18.2%
People Home SB MHC of PA Beaver 186 187 187 0.3% 0.2% 39.2 13,741 76.3% 7.9%
Peoples Bank MHC of CT Fairfield 828 836 842 1.1% 0.7% 37.4 27,087 129.1% 24.5%
Pulaski SB MHC of NJ Union 494 498 501 0.9% 0.6% 37.2 24,441 101.0% 0.5%
SB of Finger Lakes MHC of NY Ontario 95 100 104 5.3% 3.5% 35.7 15,101 81.6% 13.1%
Wayne S&L Co MHC of OH Wayne 101 110 115 8.2% 5.2% 34.1 16,017 92.9% 10.8%
Webster City FSB MHC of IA Hamilton 16 16 16 0.4% 0.0% 39.1 16,204 98.7% 24.1%
-- -- -- ---- ---- ---- ------ ----- -----
AVERAGES: 420 434 444 3.1% 1.9% 36.9 19,031 98.4% 10.1%
MEDIANS: 238 248 255 3.1% 2.1% 37.0 18,708 100.1% 7.9%
REVERE FEDERAL SAVINGS OF MA SUFFOLK 664 643 637 -3.2% -0.9% 32.8 18,345 91.8% 0.1%
(1) Total institution deposits in headquarters county as percent of total county
deposits.
Sources: CACI, SNL Securities
RP Financial, LC.
Page 4.8
out of the 19 institutions in the Peer Group pay regular cash dividends, with
implied dividend yields ranging from 1.24 percent to 3.77 percent. Peer Group
companies which completed stock offerings during 1998 accounted for three out of
the four companies that did not reflect payment of a cash dividend. The average
dividend yield on the stocks of the Peer Group institutions was 1.62 percent as
of August 21, 1998, representing an average earnings payout ratio of 13.07
percent (see Table 4.6). As of August 21, 1998, approximately 80 percent of all
publicly-traded thrifts (non-MHC institutions) have adopted cash dividend
policies (see Exhibit IV-1) exhibiting an average yield of 2.14 percent and an
average payout ratio of 37.33 percent. The dividend paying thrifts generally
maintain higher than average profitability ratios, facilitating their ability to
pay cash dividends.
Our valuation adjustment for dividends for Revere Federal as an MHC also
considered the regulatory policy with regard to waiver of dividends by the MHC.
Under current policy, any waiver of dividends by the MHC may require the
minority stockholders' ownership interest to be reduced in a "second step"
conversion to reflect the cumulative waived dividend account. Currently, those
institutions in the Peer Group who are subject to OTS oversight and formed their
MHCs prior to the current dividend waiver policy that became effective February
1, 1995 are not subject to the dividend waiver issue in a second step conversion
(i.e. they are "grandfathered"), except in the case of special dividends or
regular dividends that are deemed "excessive" and were waived by the MHC. The
practice of the majority of public MHC institutions in the Peer Group has been
for the MHC to waive its right to the dividend. Revere Federal has indicated
that, in the case of Revere, MHC, the MHC also intends to waive its right to the
dividend. Revere Federal will be subject to the current policy with regard to
dividend waivers, while seven of the Peer Group members are not currently
subject to such a policy (due to "grandfathering").
The Holding Company has the capacity to pay a dividend comparable to the
Peer Group based on pro forma capitalization and profitability. Accordingly, we
concluded that a slight downward adjustment was warranted for purposes of
dividends relative to the Peer Group, based on the comparative advantage
maintained by some of the Peer Group companies with respect to the dividend
waiver issue.
6. Liquidity of the Shares
The Peer Group is by definition composed of companies that are traded in
the public markets, and all of the Peer Group members trade on the NASDAQ
system. Typically, the number of shares outstanding and market capitalization
provides an indication of how much liquidity there will be in a particular
stock. The market capitalization of the Peer Group companies, based on the
shares issued and outstanding to public shareholders (i.e., excluding the
majority ownership interest owned by the respective MHCs) ranged from $13.7
million to $746.1 million as of August 21, 1998, with average and median market
values of $92.5 million and $26.4 million, respectively. The public shares
issued and outstanding to the public shareholders of the Peer Group
RP Financial, LC.
Page 4.9
members ranged from approximately 650,000 to 27.6 million, with average and
median shares outstanding of approximately 5.2 million and 1.9 million,
respectively. The Bank's minority stock offering is expected to result in shares
outstanding that will be lower than the Peer Group median, while Revere
Federal's market capitalization will be less than comparative Peer Group median.
Accordingly, we anticipate that the liquidity in the Bank's stock will be less
compared to most of the Peer Group companies' stocks. However, it is anticipated
that the Holding Company's stock will be listed on NASDAQ, which will provide
for a certain degree of liquidity in the stock. Overall, we concluded a slight
downward adjustment was warranted for this factor.
7. Marketing of the Issue
Three separate markets exist for thrift stocks: (1) the after-market for
public companies, both fully-converted stock companies and MHCs, in which
trading activity is regular and investment decisions are made based upon
financial condition, earnings, capital, ROE, dividends and future prospects;
(2) the new issue market in which converting thrifts are evaluated on the basis
of the same factors but on a pro forma basis without the benefit of prior
operations as a publicly-held company and stock trading history; and (3) the
thrift acquisition market. All three of these markets were considered in the
valuation of the Bank's to-be-issued stock.
A. The Public Market
The value of publicly-traded thrift stocks is easily measurable, and
is tracked by most investment houses and related organizations. Exhibit IV-1
provides pricing and financial data on all publicly-traded thrifts. In general,
thrift stock values react to market stimuli such as interest rates, inflation,
perceived industry health, projected rates of economic growth, regulatory issues
and stock market conditions in general. Exhibit IV-2 displays historical stock
market trends for various indices and includes historical stock price index
values for thrifts and commercial banks. Exhibit IV-3 displays historical stock
price indices for thrifts only.
In terms of assessing general stock market conditions, the stock
market has generally trended higher over the past year. A decline in the July
1997 unemployment rate reversed the positive bond and stock market trends in
early-August, as inflation concerns became more prominent. A declining dollar
against the yen and mark sharpened the decline in bond prices, with the 30-year
U.S. Treasury bond yield increasing from 6.32 percent at the end of July to 6.66
percent as of August 8, 1997. The sell-off in bonds pulled stock prices lower as
well. While bond prices firmed in mid-August, notable volatility was evident in
the stock market. The Dow Jones Industrial Average ("DJIA") moved at least 100
points for five consecutive days from August 18, 1997 through August 21, 1997,
which set a record for volatility. Profit worries among some of the large blue
chip companies and mixed inflation readings were factors contributing to the
roller-coaster performance of the stock market. Despite strengthening bond
prices, stocks traded lower through the end of August. Bond prices moved
RP Financial, LC.
Page 4.10
higher on inflation data which showed that prices stayed low during the second
quarter, even though second quarter GDP growth was revised upward to an annual
rate of 3.6 percent compared to an original estimate of 2.2 percent.
Volatility returned to the stock market in early-September, with the
DJIA posting a record breaking point increase of 257.36 on September 2, 1997.
The rally was sparked by economic data that indicated manufacturing growth
slowed in August, thereby easing investors' inflation worries. However, the
rally was not sustained, as the DJIA pulled back following the one day rally.
The pull back was largely attributed to profit worries, which more than offset
favorable inflation news indicated by a slight increase in the national
unemployment rate for August (4.9 percent in August versus 4.8 percent in July).
Stocks fluctuated in a narrow trading range in mid-September, in anticipation of
third quarter earnings and August economic data. The low inflation reading
indicated by the August consumer price index sent stock and bond prices sharply
higher on September 16, 1997, with the DJIA posting a 175 point increase and the
yield on the 30-year U.S. Treasury bond posting its second largest decline in
the 1990s. Uncertainty over third quarter earnings provided for a mixed stock
market performance towards the end of September, while generally favorable
inflation readings pushed interest rates to their lowest level in two years. The
release of September employment data on October 3, 1997 caused bond and stock
prices to soar in early trading activity, as the September unemployment rate was
unchanged at 4.9 percent and fewer jobs than expected were added to the economy
during September. However, most of the initial gains were erased by news of
rising tensions between Iraq and Iran.
Congressional testimony by the Federal Reserve Chairman, in which he
indicated that it would be difficult to maintain the current balance between
tight labor markets and low inflation, caused stock and bond prices to skid in
mid-October 1997. Disappointing third quarter earnings in the technology sector
sharpened the sell-off in the stock market, with the Dow Jones Industrial
Average posting consecutive losses of more than 1.0 percent on October 16 and
17.
Stocks bounced back in early-week trading the following week,
reflecting positive third quarter earnings surprises posted by some of the blue
chip stocks. However, the recovery was abbreviated by global selling pressure,
which was led by the decline in the Hong Kong stock market, as the DJIA posted a
two-day loss approximating 320 points on October 23 and 24, 1997. The sell-off
in the world financial markets turned into a rout on the following Monday, with
a 5.8 percent decline in the Hong Kong stock market fueling the largest ever
point decline in the DJIA. On October 27, the DJIA declined 554 points or 7.2
percent. While the selling was broad based, technology stocks sensitive to Asian
demand experienced some of the sharpest declines. The turmoil in the stock
market provided for a sharp rally in U.S. Treasury bonds, reflecting a flight to
quality by skittish investors. The stock market recovered strongly the day after
the record breaking point decline, as the DJIA
RP Financial, LC.
Page 4.11
surged a record breaking 337 points on October 28. Comparatively, bond prices
declined sharply on October 28, as investors pulled out of the Treasury market
to reinvest into the stock market.
Market conditions remained uneven through the week ended October 31,
1997, which was followed by a soaring stock market on November 3, 1997. The DJIA
posted a 232 point increase on November 3, which was supported by a resurgence
in the Hong Kong market. Following the one day rally, volatility returned to the
stock market through mid-November. The market's uneven performance was largely
attributable to the ongoing influence of the international markets, particularly
the Asian and Latin American markets. In mid-November, the yield on the 30-year
bellwether Treasury issue approached 6.0 percent, its lowest level since
February 1996. Advances in the bond market provided for a generally positive
stock market environment in the second half of November, with bank and
technology issues being among the strongest performers. Renewed confidence that
the Asian governments would control the region's financial problems furthered
the stock market rally in early-December. Despite a sell-off in the bond market
caused by the November unemployment rate dropping to its lowest level since
October 1973, the DJIA showed surprising strength and closed almost 99 points
higher on December 5, 1997. Stocks declined the following week, as earnings
concerns, particularly in the technology sector, overshadowed a rally in the
bond market. Positive inflation news and world market turmoil caused investors
to dump stocks in favor of bonds, which served to push the yield on the
bellwether 30-year Treasury bond below 6.0 percent in mid-December. Bond prices
were also boosted by the Federal Reserve's decision to leave interest rates
unchanged at its mid-December meeting, which also provided for a modest recovery
in the stock market. In late-December, investors dumped stocks on earnings
concerns, while a flight to quality pushed bond prices higher. The stock market
surged higher at year end, as worries about South Korea's financial crisis
eased.
Led by a rally in the bond market, stocks continued to move higher at
the beginning of 1998. However, turmoil in the Asian markets and the uncertain
outlook for fourth quarter earnings provided for an uneven stock market through
most of January and into early-February. For example, the Dow Jones Industrial
Average ("DJIA") plunged 222 points on January 9, 1998, due to fourth quarter
profit worries and economic turmoil in Southeast Asia. Comparatively, a rally in
the Asian markets propelled the DJIA 201 points higher on February 2, 1998. In
general, a rebound in the Asian markets and favorable fourth quarter earnings
served to the push the stock market higher during the second half of January and
into early-February. In contrast, bond prices edged lower over the same time
period, as the labor market remained tight as indicated by a sharp increase in
labor costs during the fourth quarter of 1997 and a larger than expected
increase in the number of jobs added during December 1997.
Strength primarily in technology stocks pushed the DJIA to a record
high for the first time in six months on February 10, 1998. The rally was
sustained through mid-February, as the DJIA established six
RP Financial, LC.
Page 4.12
consecutive new highs through February 18, 1998. Strong earnings and
expectations that profitability was not as badly hurt by the Asian crisis as
feared served as the basis for the rally in technology stocks. Stable interest
rates and few signs of inflation preserved the positive market environment
through the end of February, with blue chip stocks leading the advance.
At the beginning of March 1998, signs of a strengthening economy
pushed the 30-year bellwether bond above 6.0 percent for the first time in three
months. Earnings concerns, particularly in the technology sector, provided for
an uneven stock market in early-March. Despite a decline in the February
unemployment rate to 4.6 percent, bond prices advanced on news of a loss of jobs
in the manufacturing sector and stocks moved higher as technology issues
rallied. Both bond and stock prices benefitted from plunging oil prices in
mid-March, as further new highs were established in the DJIA and the yield on
30-year bond moved back below 6.0 percent. In late-March 1998, stocks drifted
lower due to first quarter earnings worries and uncertainty over the outcome of
the Federal Reserve's meeting at the end of March.
Stocks and bonds moved higher in early-April 1998, following the
Federal Reserve's decision not to raise interest rates. Aided by the $82.9
billion merger agreement between Travelers Group and Citicorp, the Dow Jones
Industrial Average closed above 9000 for the first time on April 6, 1998. The
positive trend in stocks strengthened through mid-April, reflecting a more
bullish outlook for technology stocks and expectations of further consolidation
among financial stocks punctuated by BankAmerica's merger pact with NationsBank
in a deal valued at $60 billion and Banc One's proposed $30 billion merger with
FirstChicago. Profit taking and speculation that the Federal Reserve was leaning
towards raising interest rates provided for a late-April sell-off in both stocks
and bonds. The threat of higher interest rates pushed the 30-year bellwether
bond back above 6.0 percent in late-April, its highest level since early-March.
Economic data for May 1998 generally indicated a robust economy, with
most segments of the economy experiencing continued growth. In fact some
indicators suggested that inflation may be creeping back into the economy, most
notably a 0.3 percent increase in May consumer prices, a 0.9 percent increase in
May retail sales and a 0.6 percent in consumer spending during May. The
favorable economic environment was also reflected in the consumer confidence
survey for June 1998, which indicated that consumer confidence was at its higher
level since June 1969. At the end of June, first quarter GDP growth was revised
upward to a stronger than expected 4.8 percent annual growth rate; however, much
of the growth was due to the build-up of inventories.
Inflation concerns eased in early-July 1998, as the June unemployment
rate rose to 4.5 percent compared to a a 4.3 percent rate in May. Other June
economic indicators, such as consumer prices, retail sales and industrial
output, also signaled a slowing pace of growth for the U.S. economy. Second
quarter GDP growth of 1.4 percent was the slowest pace of growth recorded in
three years. The July unemployment rate was unchanged
RP Financial, LC.
Page 4.13
at 4.5 percent, although there was a significant decline in manufacturing jobs
during July. Most of the decline in manufacturing jobs was related to the GM
strike and, to a lesser extent, the Asian financial crisis. The limited threat
of inflation was further indicated by the Consumer Price Index for July, which
reflected a modest 0.2 percent increase compared to June. These positive factors
about the U.S. economy resulted in the DJIA reaching an all-time high above 9300
on July 17, 1998. However, increased concerns out the severity of Asia's
financial crisis, and when such effects will hit the U.S. resulted in declines
in the stock market. Continued economic turmoil in Asia and, during August,
Russia's faltering economy, caused stocks to slide further. On August 21, 1998,
the DJIA closed at 8533.7, a decline of approximately 9 percent from the middle
of July 1998, and an increase of 8.2 percent from one year ago.
Similar to the overall stock market, the market for thrift stocks has
generally been favorable during the past twelve months. Thrift prices generally
declined during the first half of August 1997, due to higher interest rates and
profit taking. From July 31, 1997 to August 15, 1997, the SNL Index declined by
3.7 percent. Thrift prices recovered modestly during the second half of August,
as the Federal Reserve left short-term interest rates unchanged at its August
meeting. Thrift stocks participated in the one day stock market rally on
September 2, 1997, as evidenced by a 1.95 percent increase in the SNL Index.
News of NationsBank's proposed acquisition of Barnett Banks for more than four
times its book value appears to have further contributed to the one day run-up
in thrift prices. In contrast to the overall stock market, thrift prices
continued to move higher following the one day rally in the DJIA. Stable
interest rates and acquisition news sustained the positive market for thrift
issues. The decline in interest rates following the release of the August
consumer price index in mid-September served to further the rally in thrift
prices. During late-September and early-October, interest rate sensitive issues
in general benefited from the declining interest rate environment and
expectations of strong third quarter earnings.
The upward trend in thrift prices stalled in mid-October 1997, as
interest rates moved higher following warnings by the Federal Reserve Chairman
of inflation creeping back into the economy due to the tight labor markets.
Thrift stocks gyrated in conjunction with the overall market in late-October,
with the SNL index declining by 5.2 percent on October 27 and increasing by 2.4
percent on October 28. Thrift prices further recovered on October 29, which was
supported by a rally in the bond market. Aided by the favorable interest rate
climate, thrift stocks posted further gains in early-November and then retreated
modestly in mid-November. Thrift and bank issues declined on concerns that a
slowing U.S. economy could lead to weaker loan demand and higher delinquency
rates. However, led by the strengthening bond market, thrift and bank issues
moved higher during late-November and early-December. Acquisition news also
contributed to the upturn in bank and thrift prices, as two major bank
acquisitions were announced for relatively high price-to-book multiples. First
Union Corp.'s proposed acquisition of CoreStates Financial ($47 billion in
assets) was for 539 percent of book value,
RP Financial, LC.
Page 4.14
while First American Corporation's proposed acquisition for Deposit Guaranty
Corporation ($6.8 billion in assets) was for 419 percent of book value. Those
deals, along with speculation of possible other major thrift and bank
acquisitions, filtered into the prices of bank and thrift issues in general.
Concern of relatively high valuations somewhat offset the declining interest
rate environment, as thrift issues traded in a narrow range in mid-December.
Thrift prices moved higher at the close of 1997, as interest rates continued to
decline.
The positive trend in thrift prices was not sustained at the beginning
of 1998, as thrift prices moved sharply lower during early-January trading. From
January 2, 1998 to January 9, 1998, the SNL Index for all publicly-traded
thrifts declined from 810.5 to 720.2, or 11.1 percent. The sell-off in thrift
stocks was prompted by concerns that the flattening yield curve would put
pressure on earnings, particularly among institutions which maintained high
concentrations of mortgage loans. Thrift prices recovered somewhat during the
second half of January, with the upward trend becoming more pronounced in
early-February. Fourth quarter earnings, which generally met expectations, and
acquisition news led the recovery in thrift prices. The ongoing trend of
consolidation was highlighted by the proposed merger between First Nationwide
Holdings ($30.9 billion in assets) and Golden State Bancorp ($16.0 billion in
assets), which was announced in early-February. Stable interest rates and
acquisitions provided for a mildly positive increase in thrift stocks during the
balance of February.
Thrift issues continued to edge higher during the first half of March
1998, reflecting improving fundamentals and improving expectations of favorable
first quarter earnings. The announcement of Washington Mutual's acquisition of
H.F. Ahmanson for 390 percent of book value on March 17, 1998 provided a more
notable boost to thrift prices, particularly the stocks of the California-based
institutions. Thrift issues traded in a narrow range in late-March 1998,
reflecting uncertainty over the possibility of higher interest rates and
forthcoming first quarter earnings.
The Federal Reserve's decision to leave interest rates unchanged at
its late-March meeting, along with the mega mergers occurring within the
financial services sector, provided for a positive trend in thrift prices during
the first half of April 1998. However, bank and thrift issues experienced
selling pressure in late-April, reflecting speculation of higher interest rates
which triggered a sell-off in the overall market. Likewise, thrift stocks
followed the overall market higher in early-May, as the inflation data contained
in the first quarter growth numbers provided for an improved interest rate
outlook. Speculation of higher interest rates translated into a fairly flat
market for thrift issues through mid-May. Thrift stocks eased lower in late-May,
reflecting the decline in the overall stock market. Thrift stocks followed the
general stock market throughout June and July of 1998, reaching highs during
mid-July and declining sharply as the overall stock market declined in early
August 1998. Further unsettling news from the world economic markets, in
particular Asia and Japan, and the bombing of the suspected terrorist operations
in Sudan and Afghanistan, resulted in declines in stock market prices in early
and
RP Financial, LC.
Page 4.15
mid-August 1998, along with increased demand for lower risk U.S. Treasury
securities. Thrift and Bank stock prices declined as worries spread about
exposure of the U.S. banking industry to overseas crisis. On August 21, 1998,
the SNL Index for all publicly-traded thrifts closed at 702.1, a decrease of
13.8 percent from the beginning of the year.
B. The New Issue Market
In addition to thrift stock market conditions in general, the
new issue market for converting thrifts is also an important consideration in
determining the Bank's pro forma market value. The new issue market is separate
and distinct from the market for seasoned stock thrifts in that the pricing
ratios for converting issues are computed on a pro forma basis, specifically:
(1) the numerator and denominator are both impacted by the conversion offering
amount, unlike existing stock issues in which price change affects only the
numerator; and (2) the pro forma pricing ratio incorporates assumptions
regarding source and use of proceeds, effective tax rates, stock plan purchases,
etc. which impact pro forma financials, whereas pricing for existing issues are
based on reported financials. The distinction between pricing of converting and
existing issues is perhaps no clearer than in the case of the price/tangible
book ("P/TB") ratio in that the P/TB ratio of a converting thrift will typically
always result in a discount to tangible book value whereas in the current market
for existing thrifts the P/TB reflects a premium to tangible book value.
Therefore, it is appropriate to also consider the market for new issues, both at
the time of the conversion and in the aftermarket.
In general, the market environment for converting thrift issues
was highly receptive throughout 1997, with most converting issues being
oversubscribed and trading higher in initial trading activity. To date, the
positive market environment for converting thrift issues has been sustained
during 1998, although prices have declined somewhat in recent weeks in line with
the overall stock market. Since early-May 1998, standard conversion offerings
completed and began trading have exhibited an average price increase of 25.4
percent on the first day of trading, compared to increases in excess of 50
percent that were prevalent in the recent past.
As shown in Table 4.2, the average one week change in price for
standard conversion offerings completed during the latest three month period
ending July 23, 1998 equaled positive 29.9 percent. The average pro forma
price/tangible book and core price/earnings ratios of the recent standard
conversions was
RP Financial, LC.
Table 4.2
Pricing Characteristics and After-Market Trends
Recent Conversions Completed (Last Three Months)
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Information Pre-Conversion Data
----------------------------------- Offering Information Contribution to
Financial Info. Asset Quality Charitable Found.
- ------------------------------------------------------------------------------------------------------------------------------------
Conversion Equity/ NPAs/ Res. Gross %of Exp./ % of
Institution State Date Ticker Assets Assets Assets Cov. Proc. Mid. Proc. Form Offering
- ----------- ----- ---- ------ ------ ------ ------ ---- ----- --- ---- ---- --------
($Mil) (%) (%)(2) (%) ($Mil) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
CFS Bancorp, Inc. IN* 07/24/98 CITZ $1,267 7.68% 0.97% 43% $178.5 132% 1.8% Stock 1.70%
Carnegie Financial Corp. PA 07/13/98 Pink $ 17 7.05% 3.12% 233% $ 2.4 132% 10.9% N.A. N.A.
United Community Financial OH 07/09/98 UCFC 1,049 13.73% 0.98% 59% 334.7 132% 1.3% N.A. N.A.
PCB Holding Company IN 07/02/98 Pink 22 9.51% 0.00% N.M. 4.0 132% 7.9% N.A. N.A.
Hudson River Bancorp NY* 07/01/98 HRBT 665 10.13% 2.66% 46% 173.4 132% 1.7% N.A. N.A.
First Kansas Financial Corp. KS 06/29/98 FKAN 94 7.36% 0.05% 398% 15.5 132% 3.2% N.A. N.A.
Anson Bancorp, Inc. NC 06/26/98 Pink 21 18.46% 1.25% 37% 5.9 89% 8.3% N.A. N.A.
BOC Financial Corp. NC 05/01/98 Pink 25 17.99% 0.19% 64% 9.3 132% 4.9% N.A. N.A.
AVERAGES - STANDARD CONVERSIONS: $ 395 11.49% 1.15% 126% $ 90.5 127% 5.0% N.A. N.A.
MEDIANS - STANDARD CONVERSIONS: $ 60 9.82% 0.98% 59% $ 12.4 132% 4.1% N.A. N.A.
Second-Step Conversions
- -----------------------
Homestead Financial, Inc. LA* 07/20/98 HSTD $ 62 9.72% 0.97% 43% $ 11.2 132% 4.1% N.A. N.A.
PSB Bancorp PA* 07/17/98 PSBI $ 134 11.58% 0.27% 133% $ 16.1 115% 3.0% N.A. N.A.
Thistle Group Holdings PA 07/14/98 THTL 281 10.41% 0.27% 133% 78.6 100% 1.7% N.A. N.A.
AVERAGES - 2ND STEP CONVERSIONS $ 159 10.57% 0.50% 103% $ 35.3 116% 2.9% N.A. N.A.
MEDIANS - 2ND STEP CONVERSIONS: $ 134 10.41% 0.27% 133% $ 16.1 115% 3.0% N.A. N.A.
AVERAGES - ALL CONVERSIONS: $ 331 11.24% 0.98% 119% $ 75.4 124% 4.4% N.A. N.A.
MEDIANS - ALL CONVERSIONS: $ 94 10.13% 0.97% 62% $ 15.5 132% 3.2% N.A. N.A.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Information Insider Purchases Pro Forma Data
--------------------------------------
Pricing Ratios(4) Financial Charac.
- ---------------------------------------------------------------------------------- --------------------------------------
Benefit Plans Initial
Conversion Recog. Mgmt.& Dividend Core
Institution State Date Ticker ESOP Plans Dirs. Yield P/TB P/E(5) P/A ROA TE/A ROE
- ----------- ----- ---- ------ ---- ----- ----- ----- ---- ------ --- --- ---- ---
(%) (%) (%)(3) (%) (%) (x) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
CFS Bancorp, Inc. IN* 07/24/98 CITZ 8.0% 4.0% 3.3% 0.00% 91.9% 28.0 16.0% 0.6% 16.3% 3.6%
Carnegie Financial Corp. PA 07/13/98 Pink 8.0% 4.0% 12.8% 0.00% 79.2% N.M. 12.9% N.M. 16.3% N.M.
United Community Financial OH 07/09/98 UCFC 8.0% 4.0% 0.1% 0.00% 80.2% 17.4x 25.9% 1.5% 32.3% 4.6%
PCB Holding Company IN 07/02/98 Pink 0.0% 4.0% 6.7% 0.00% 71.0% 22.2 15.6% 0.7% 21.9% 3.2%
Hudson River Bancorp NY* 07/01/98 HRBT 8.0% 4.0% 1.6% 0.00% 82.0% 21.4 21.9% 0.9% 26.7% 3.3%
First Kansas Financial Corp. KS 06/29/98 FKAN 8.0% 4.0% 5.7% 0.00% 77.2% 16.3 14.4% 0.9% 18.7% 4.7%
Anson Bancorp, Inc. NC 06/26/98 Pink 0.0% 4.0% 9.2% 0.00% 64.7% 19.9 22.2% 1.1% 34.3% 3.3%
BOC Financial Corp. NC 05/01/98 Pink 8.0% 4.0% 3.1% 0.00% 76.4% 31.4 28.7% 0.9% 37.5% 2.4%
AVERAGES - STANDARD CONVERSIONS: 6.0% 4.0% 5.3% 0.00% 77.8% 22.4X 19.7% 0.9% 25.5% 3.6%
MEDIANS - STANDARD CONVERSIONS: 8.0% 4.0% 4.5% 0.00% 78.2% 21.4X 19.0% 0.9% 24.3% 3.3%
Second-Step Conversions
- -----------------------
Homestead Financial, Inc. LA* 07/20/98 HSTD 8.0% 4.0% 2.9% 2.00% 96.1% 28.2x 20.8% 0.7% 21.7% 3.4%
PSB Bancorp PA* 07/17/98 PSBI 8.0% 4.0% 3.3% 0.00% 106.3% 27.1x 21.1% 0.8% 19.8% 3.9%
Thistle Group Holdings PA 07/14/98 THTL 8.0% 4.0% 5.6% 0.00% 92.7% 19.0 25.8% 1.4% 27.8% 4.9%
AVERAGES - 2ND STEP CONVERSIONS 8.0% 4.0% 3.9% 0.67% 98.4% 24.8X 22.6% 1.0% 23.1% 4.1%
MEDIANS - 2ND STEP CONVERSIONS: 8.0% 4.0% 3.3% 0.00% 96.1% 27.1X 21.1% 0.8% 21.7% 3.9%
AVERAGES - ALL CONVERSIONS: 6.5% 4.0% 4.9% 0.18% 83.4% 23.1X 20.5% 1.0% 24.8% 3.7%
MEDIANS - ALL CONVERSIONS: 8.0% 4.0% 3.3% 0.00% 80.2% 21.8X 21.1% 0.9% 21.9% 3.5%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Information Post-IPO Pricing Trends
-------------------------------------------------------------
Closing Price:
- ----------------------------------------------------- -------------------------------------------------------------
First After After
Conversion IPO Trading % First % First %
Institution State Date Ticker Price Day Change Week(6) Change Month(7) Change
- ----------- ----- ---- ------ ----- --- ------ ------- ------ -------- ------
($) ($) (%) ($) (%) ($) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
CFS Bancorp, Inc. IN* 07/24/98 CITZ $10.00 $11.44 14.4% $11.44 14.4% $11.44 14.4%
Carnegie Financial Corp. PA 07/13/98 Pink $10.00 $11.81 18.1% $11.81 18.1% $10.25 2.5%
United Community Financial OH 07/09/98 UCFC 10.00 15.00 50.0% 16.00 60.0% 17.38 73.8%
PCB Holding Company IN 07/02/98 Pink 10.00 11.50 15.0% 12.12 21.2% 10.75 7.5%
Hudson River Bancorp NY* 07/01/98 HRBT 10.00 12.56 25.6% 13.50 35.0% 12.75 27.5%
First Kansas Financial Corp. KS 06/29/98 FKAN 10.00 12.31 23.1% 12.25 22.5% 12.38 23.8%
Anson Bancorp, Inc. NC 06/26/98 Pink 10.00 12.00 20.0% 12.06 20.6% 12.37 23.7%
BOC Financial Corp. NC 05/01/98 Pink 10.00 13.68 36.8% 14.75 47.5% 13.25 32.5%
Averages - Standard Conversions: $10.00 $12.54 25.4% $12.99 29.9% $12.57 25.7%
Medians - Standard Conversions: $10.00 $12.16 21.6% $12.19 21.9% $12.37 23.7%
Second-Step Conversions
- -----------------------
Homestead Financial, Inc. LA* 07/20/98 HSTD $10.00 $ 9.31 -6.9% $ 9.31 -6.9% $ 9.31 -6.9%
PSB Bancorp PA* 07/17/98 PSBI $10.00 $ 9.19 -8.1% $ 9.19 -8.1% $ 9.19 -8.1%
Thistle Group Holdings PA 07/14/98 THTL 10.00 9.94 -0.6% 9.81 -1.9% 9.81 -1.9%
Averages - 2nd Step Conversions $10.00 $ 9.48 -5.2% $ 9.44 -5.6% $ 9.44 -5.6%
Medians - 2nd Step Conversions: $10.00 $ 9.31 -6.9% $ 9.31 -6.9% $ 9.31 -6.9%
Averages - All Conversions: $10.00 $11.70 17.0% $12.02 20.2% $11.72 17.2%
Medians - All Conversions: $10.00 $11.81 18.1% $12.06 20.6% $11.44 -5.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Note: * - Appraisal performed by RP Financial; "NT" - Not Traded; "NA" - Not Applicable, Not Available.
(1) Non-OTS regulated thrift. (5) Excludes impact of special SAIF assessment on earnings.
(2) As reported in summary pages of prospectus. (6) Latest price if offering less than one week old.
(3) As reported in prospectus. (7) Latest price if offering more than one week but less than one month
(4) Does not take into account the adoption of SOP 93-6. old.
(8) Simultaneously converted to commercial bank charter. July 23, 1998
RP Financial, LC.
Page 4.17
77.8 percent and 22.4 times, respectively. With the exception of one
transaction, the conversions that have began trading since early-May 1998 were
all closed at the top of the super range.
In examining the current pricing characteristics of
institutions completing their conversions during the last three months (see
Tabley4.3), we note a difference exists in their pricing ratios compared to the
universe of all publicly-traded thrifts. Specifically, the current average P/B
ratio of the conversions completed in the most recent three month period of
91.90 percent reflects a discount of 36.7 percent from the average P/B ratio of
all publicly-traded thrifts (equal to 145.22 percent), and the 22.28 times core
P/E ratio of the recent conversions was at a 14.3 percent premium to the all
public average core P/E ratio of 19.50 times. The pricing ratios of the better
capitalized but lower earning (based on return on equity measures) recently
converted thrifts suggest that the investment community has determined to
discount their stocks on a book basis until the earnings improve through
redeployment and leveraging of the proceeds over the longer term.
Similar to the market for converting thrifts, the five
publicly-traded MHC offerings that have been completed during 1998 (Brookline
Bancorp of MA - March 1998, Niagra Bancorp of NY - April 1998, Gaston Federal
Bancorp of NC - April 1998, BCSB Bankcorp of MD - July 1998 and Liberty Bancorp
of NJ - July 1998) have experienced a generally favorable market reception as
well. Based on August 21, 1998 market prices, the trading prices of these five
MHC offerings have appreciated in price by 10.1 percent from their respective
IPO prices, although the prices of these recently converted thrifts have
declined in recent periods. Notwithstanding the initial price increases, the
most recent data suggests a broad sell off in MHC issues, as the SNL MHC index
has declined by 19.0 percent since June 30, 1998 (from 1123.2 at June 30, 1998
to 909.4 at August 21, 1998). The anticipated investor interest in MHC offerings
is expected to be low.
In determining our valuation adjustment for marketing of the
issue, we considered trends in both the overall thrift market and the new issue
market. The overall market for thrift stocks is considered to be moderately
strong, as thrift stocks are currently exhibiting pricing ratios that are above
historical levels, yet have declined in the most recent several weeks in step
with the overall stock market. Investor interest in the new issue market during
most of 1998 has been favorable, as the majority of recently completed offerings
have been oversubscribed and have recorded price increases in initial
post-conversion trading activity. Conditions in the new issue market for MHC
shares have also been favorable, based on the positive market reception that has
been experienced by the five publicly-traded MHC offerings completed during
1998, but the most recent stock price trends suggest greatly diminished interest
currently.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.3
Market Pricing Comparatives
Prices As of August 21, 1998
Market Per Share Data
Capitalization --------------- Pricing Ratios(3) Dividends(4)
--------------- Core Book ----------------------------------- ----------------------
Price/ Market 12-Mth Value/ Amount/ Payout
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE Share Yield Ratio(5)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------ ------- ------ -------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x) ($) (%) (%)
SAIF-Insured Thrifts 17.90 151.22 0.90 13.30 18.68 141.77 18.05 145.22 19.50 0.31 1.78 30.71
Special Selection Grouping(8) 10.47 152.29 0.47 11.30 23.21 91.90 22.01 91.90 22.28 0.11 1.35 0.00
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
CITZ CFS Bancorp, Inc. of IN 10.00 227.27 0.40 10.88 27.78 91.91 16.00 91.91 25.00 0.00 0.00 0.00
FKAN First Kansas Financial of KS 11.31 17.58 0.61 12.95 18.54 87.34 16.32 87.34 18.54 0.00 0.00 0.00
HSTD Homestead Bancorp, Inc. of LA 8.44 12.47 0.36 10.40 23.44 81.15 17.58 81.15 23.44 0.80 9.48 NM
HRBT Hudson River Bancorp Inc of NY 12.00 208.06 0.47 12.20 29.27 98.36 26.30 98.36 25.53 0.00 0.00 0.00
PSBI PSB Bancorp Inc. of PA 7.75 24.03 0.37 9.41 20.95 82.36 16.32 82.36 20.95 0.00 0.00 0.00
THTL Thistle Group Holdings of PA 9.00 81.00 0.53 10.79 16.98 83.41 23.19 83.41 16.98 0.00 0.00 0.00
UCFC United Community Fin. of OH 14.81 495.62 0.58 12.47 25.53 118.77 38.38 118.77 25.53 0.00 0.00 0.00
Financial Characteristics(6)
-------------------------------------------------------
Total Equity/ NPAs/ Reported Core
Financial Institution Assets Assets Assets ROA ROE ROA ROE
- --------------------- ------ ------- ------- ------- ------- ------- -------
($Mil) (%) (%) (%) (%) (%) (%)
SAIF-Insured Thrifts 1,069 14.05 0.60 0.93 7.90 0.88 7.42
Special Selection Grouping(8) 600 23.49 0.64 0.96 4.05 0.99 4.17
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
CITZ CFS Bancorp, Inc. of IN 1,421 17.41 0.67 0.58 3.31 0.64 3.68
FKAN First Kansas Financial of KS 108 18.69 0.05 0.88 4.71 0.88 4.71
HSTD Homestead Bancorp, Inc. of LA 71 21.66 0.27 0.75 3.46 0.75 3.46
HRBT Hudson River Bancorp Inc of NY 815 26.74 1.66 0.90 3.36 1.03 3.85
PSBI PSB Bancorp Inc. of PA 147 19.81 NA 0.78 3.93 0.78 3.93
THTL Thistle Group Holdings of PA 349 27.80 0.22 1.37 4.91 1.37 4.91
UCFC United Community Fin. of OH 1,291 32.31 0.98 1.50 4.65 1.50 4.65
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month data,
adjusted to omit non-operating items (including the SAIF assessment) on a
tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB =
Price to tangible book value; and P/CORE = Price to estimated core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend declared.
(5) Indicated dividend as a percent of trailing twelve month estimated core
earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month earnings and average equity and assets balances.
(7) Excludes from averages those companies the subject of actual or rumored
acquisition activities or unusual operating characteristics.
(8) Includes Converted Last 3 Mths (no MHC);
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been obtained
from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
RP Financial, LC.
Page 4.19
C. The Acquisition Market
Also considered in the valuation was the potential impact on
Revere Federal's stock price of recently completed and pending acquisitions of
other savings institutions operating in Massachusetts. As shown in Exhibit IV-4,
there were nine Massachusetts thrifts acquired during 1997 and year-to-date
1998, and there are currently three acquisitions pending of Massachusetts
savings institutions.
Under other circumstances, the existence of thrift acquisition
activity in the Bank's market area might warrant an upward adjustment to value
to account for the likelihood of investors placing an acquisition premium on the
stock. However, the acquisition activity in Revere Federal's market was deemed
to have a minimal valuation impact for three reasons. First, Revere Federal's
Board of Directors has stated their intention to remain independent following
the stock offering, a factor underscored by the Board's decision to reorganize
into MHC form. Second, Revere Federal could not become an acquisition target for
at least one year following a second step conversion, pursuant to current
conversion regulations. Finally, the Bank has no immediate intentions to pursue
a "second step" conversion.
* * * * * * * * * * *
In determining our valuation adjustment for marketing of the
issue, we considered trends in both the overall thrift market, the new issue
market including the new issue market for MHC shares, and the acquisition market
(which we considered to be not highly applicable to the Bank's valuation).
Taking these factors and trends into account, RP Financial concluded that a
moderate downward adjustment was appropriate in the valuation analysis for
purposes of marketing of the issue.
8. Management
Revere Federal's management team has experience and expertise in all of the
key areas of the Bank's operations. Exhibit IV-5 provides summary resumes of
Revere Federal's Board of Directors and executive management. While the Bank
does not have the resources to develop a great deal of management depth, given
its asset size and the impact it would have on operating expenses, management
and the Board have been effective in implementing an operating strategy that can
be well managed by the Bank's present management structure.
Similarly, the returns, capital positions, and other operating measures of
the Peer Group companies are indicative of well-managed financial institutions,
which have Boards and management teams that have been effective in implementing
competitive operating strategies. Therefore, on balance, we concluded no
valuation adjustment relative to the Peer Group was appropriate for this factor.
RP Financial, LC.
Page 4.20
9. Effect of Government Regulation and Regulatory Reform
In summary, as a SAIF-insured savings institution operating in the MHC form
of ownership, Revere Federal will operate in substantially the same regulatory
environment as the Peer Group members -- all of whom are adequately capitalized
institutions and are operating with no apparent restrictions. Exhibit IV-6
reflects the Bank's pro forma regulatory capital ratios. The one difference
noted between Revere Federal and the Peer Group was in the area of regulatory
policy regarding dividend waivers (see the discussion above for "Dividends").
The Bank and a majority of the Peer Group members are subject to minority
dilution in a second step conversion because of the current dividend waiver
policy, while a minority of the Peer Group companies are not subject to the
current policy regarding dividend waivers as the result of "grandfathering"
under the previous OTS guidelines. Because a downward adjustment was already
applied for this factor in the "Dividends" section of this appraisal, no further
adjustment has been applied for the effect of government regulation and
regulatory reform.
Summary of Adjustments
Overall, based on the factors discussed above, we concluded that the Bank's
pro forma market value should be discounted relative to the Peer Group as
follows:
Key Valuation Parameters: Valuation Adjustment
- ------------------------- --------------------
Financial Condition No Adjustment
Profitability, Growth and Viability of Earnings Moderate Downward
Asset Growth No Adjustment
Primary Market Area No Adjustment
Dividends Slight Downward
Liquidity of the Shares Slight Downward
Marketing of the Issue Moderate Downward
Management No Adjustment
Effect of Government Regulations and Regulatory Reform No Adjustment
Basis of Valuation. Fully-Converted Pricing Ratios
As indicated in Chapter III, the valuation analysis included in this
section places all of the public MHC institutions on equal footing by restating
their financial data and pricing ratios on a "fully-converted" basis. We believe
there are a number of characteristics of MHC shares that make them different
from the shares of fully-converted companies. These factors include: (1) lower
aftermarket liquidity in the MHC shares since less than 50 percent of the shares
are available for trading; (2) guaranteed minority ownership interest, with no
chance of exercising voting control of the institution; (3) no possibility of
acquisition speculation to support stock prices; (4) the impact of "second step"
conversions on the pricing of MHC institutions; and (5) the current regulatory
RP Financial, LC.
Page 4.21
policy regarding the waiver of dividends by MHC institutions. The above
characteristics of MHC shares have provided MHC shares with different trading
characteristics versus fully-converted companies. To account for the unique
trading characteristics of MHC shares, RP Financial has placed the financial
data and pricing ratios of the Peer Group on a fully-converted basis to make
them comparable for valuation purposes. Using the per share and pricing
information of the Peer Group on a fully-converted basis accomplishes two
things. First, such figures eliminate the distortions resulting when trying to
compare institutions that have a different public ownership interests
outstanding. Secondly, such an analysis provides ratios that are comparable to
the pricing information of fully-converted public companies, and more
importantly, are directly applicable to determining the pro forma market value
range of the 100 percent ownership interest in Revere Federal as an MHC.
To calculate the fully-converted pricing information for MHCs, the reported
financial information for the public MHCs was adjusted as follows: (1) a second
step conversion was assumed, with all shares owned by the MHC assumed to be sold
at the August 21, 1998 trading price; (2) the gross proceeds from such a sale
were adjusted to reflect reasonable offering expenses and standard stock based
benefit plan parameters that would be factored into a "second step" conversion
of MHC institutions; and (3) book value per share and earnings per share figures
for the public MHCs were adjusted by the impact of the assumed second step
conversion, resulting in an estimation of book value per share and earnings per
share figures on a fully-converted basis. Since they place the public MHC
institutions on a fully-converted basis using the same approach as utilized in
the several second step conversions completed to date, these per share figures
(fully-converted basis) are comparable to the per share financial information
reported by fully-converted public companies and can form the basis for
estimating the pro forma market value range of a 100 percent ownership interest
in Revere Federal. Table 4.4 on the following page shows the calculation of per
share financial data (fully-converted basis) for each of the 19 public MHC
institutions that form the Peer Group.
Valuation Approaches
In applying the accepted valuation methodology promulgated by the OTS and
adopted by the FDIC, i.e., the pro forma market value approach, we considered
the three key pricing ratios in valuing Revere Federal's to-be-issued stock --
price/earnings ("P/E"), price/book ("P/B"), and price/assets ("P/A") approaches
- -- all performed on a pro forma basis including the effects of the conversion
proceeds. In computing the pro forma impact of the conversion and the related
pricing ratios, we have incorporated the valuation parameters disclosed in
Revere Federal's offering circular for reinvestment rate, the effective tax rate
and stock benefit plan assumptions (summarized in ExhibitsyIV-7 and IV-8).
Pursuant to the minority stock offering, we have also incorporated the valuation
parameters disclosed in Revere Federal's offering circular for offering
expenses. The assumptions utilized in the pro forma analysis in calculating the
Bank's full conversion value are described more fully below.
TABLE 4.4
CALCULATION OF IMPLIED PER SHARE DAT -- INCORPORATING MHC SECOND STEP CONVERSION
COMPARABLE INSTITUTION ANALYSIS
FOR THE TWELVE MONTHS ENDED MARCH 31, 1998
CURRENT OWNERSHIP CURRENT PER SHARE DATA (MHC RATIOS)
-------------------------- ---------------------------------------------------
TOTAL PUBLIC MHC CORE BOOK TANGIBLE
SHARES SHARES SHARES EPS EPS VALUE BOOK ASSETS
-------- -------- -------- --------- --------- --------- ---------- ----------
(000) (000) (000) ($) ($) ($) ($) ($)
Publicly-Traded MHC Institutions
ALLB Alliance Bank MHC of PA (19.9) ... 3,273 650 2,623 0.62 0.62 8.93 8.93 83.33
BCSB BCSB Bankcorp MHC of MD (38.6). 6,117 2,361 3,756 0.36 0.36 7.28 7.28 44.74
BRKL Brookline Bncp MHC of MA (47.0)... 29,095 13,675 15,420 0.47 0.47 9.33 9.33 28.09
FFFL Fidelity Bcsh MHC of FL (47.9) ... 6,802 3,260 3,542 1.07 0.92 13.01 12.62 194.16
GBNK Gaston Fed Bncp MHC of NC (47.0) 4,497 2,113 2,384 0.43 0.43 8.56 8.56 38.07
HARS Harris Fin. MHYC of PA (24.9) .... 33,965 8,442 25,523 0.55 0.45 5.41 4.86 66.55
JXSB Jcksnville SB, MHC of IL (45.6) .. 1,908 869 1,039 0.51 0.33 9.23 9.23 88.91
LFED Leeds Fed Bksr HHC of MD (36.3)... 5,182 1,883 3,299 0.66 0.66 9.52 9.52 57.70
LIBB Liberty Bancorp MHC of NJ (47) ... 3,901 1,834 2,067 0.69 0.69 8.30 8.30 61.70
NBCP Niagara Bancorp. NY MHC (45.4) ... 29,756 13,502 16,254 0.48 0.46 8.31 8.31 43.56
NWSB Northwest Bcrp MHC of PA (30.8)... 46,841 14,438 32,403 0.44 0.44 4.55 4.07 51.44
PBCT Peoples Bank, MHC of CT (41.2) ... 64,130 27,633 36,497 1.49 0.80 13.17 11.28 142.67
PBHC Pathfinder BC MHC of NY (45.2) ... 2,831 1,279 1,552 0.62 0.50 8.15 6.91 69.30
PHSB Ppls Home SB, MHC of PA (45.0) ... 2,760 1,242 1,518 0.63 0.56 10.33 10.33 80.94
PLSK Pulaski SB, MHC of NJ (47.0) ..... 2,108 990 1,118 0.55 0.55 10.44 10.44 90.50
SBFL SB Fngr Lakes MHC of NY (33.1) ... 3,570 1,180 2,390 0.26 0.22 6.10 6.10 70.26
SKBO First Carnegie MHC of PA (45.0) .. 2,300 1,035 1,265 0.42 0.50 10.86 10.86 64.41
WAYN Wayne Svgs Bks MHC of OH (48.2) 2,486 1,197 1,289 0.74 0.68 9.83 9.83 104.49
WCFB Wbstr Cty FSB MHC of IA (45.6).... 2,114 962 1,152 0.64 0.64 10.67 10.67 44.43
IMPACT OF SECOND STEP CONVERSION
-----------------------------------------------
SHARE GROSS NET INCR. NET INCR.
PRICE PROCDS(1) CAPTIAL(2) INCOME(3)
---------- ----------- ------------ -----------
($000) ($000) ($000) ($000)
Publicly-Traded MHC Institutions
ALLB Alliance Bank MHC of PA (19.9) ... 21.25 55,739 47,935 1,468
BCSB BCSB Bankcorp MHC of MD (38.6). 11.38 42,743 36,759 1,126
BRKL Brookline Bncp MHC of MA (47.0)... 12.75 196,605 169,080 5,177
FFFL Fidelity Bcsh MHC of FL (47.9) ... 26.50 93,863 80,722 2,472
GBNK Gaston Fed Bncp MHC of NC (47.0) 12.50 29,800 25,628 785
HARS Harris Fin. MHYC of PA (24.9) .... 17.75 453,033 389,609 11,930
JXSB Jcksnville SB, MHC of IL (45.6) .. 16.75 17,403 14,967 458
LFED Leeds Fed Bksr HHC of MD (36.3)... 17.50 57,733 49,650 1,520
LIBB Liberty Bancorp MHC of NJ (47) ... 10.25 21,187 18,221 558
NBCP Niagara Bancorp. NY MHC (45.4) ... 11.38 184,971 159,075 4,871
NWSB Northwest Bcrp MHC of PA (30.8)... 12.75 413,138 355,299 10,880
PBCT Peoples Bank, MHC of CT (41.2) ... 27.00 985,419 847,460 25,950
PBHC Pathfinder BC MHC of NY (45.2) ... 15.00 23,280 20,021 613
PHSB Ppls Home SB, MHC of PA (45.0) ... 16.25 24,668 21,214 650
PLSK Pulaski SB, MHC of NJ (47.0) ..... 14.88 16,636 14,307 438
SBFL SB Fngr Lakes MHC of NY (33.1) ... 16.00 38,240 32,886 1,007
SKBO First Carnegie MHC of PA (45.0) .. 13.25 16,761 14,415 441
WAYN Wayne Svgs Bks MHC of OH (48.2) 22.25 28,680 24,665 755
WCFB Wbstr Cty FSB MHC of IA (45.6).... 17.63 20,310 17,466 535
PRO FORMA PER SHARE DATA (FULLY CONVERTED)
------------------------------------------
CORE BOOK TANGIBLE
EPS EPS VALUE BOOK ASSETS
--------- -------- ------- ---------- --------
($) ($) ($) ($) ($)
Publicly-Traded MHC Institutions
ALLB Alliance Bank MHC of PA (19.9) ... 1.07 1.07 23.58 23.58 97.98
BCSB BCSB Bankcorp MHC of MD (38.6) ... 0.54 0.54 13.29 13.29 50.75
BRKL Brookline Bncp MHC of MA (47.0)... 0.65 0.65 15.14 15.14 33.90
FFFL Fidelity Bcsh MHC of FL (47.9) ... 1.43 1.28 24.88 24.49 206.03
GBNK Gaston Fed Bncp MHC of NC (47.0) . 0.60 0.60 14.26 14.26 43.77
HARS Harris Fin. MHYC of PA (24.9) .... 0.90 0.80 16.88 16.33 78.02
JXSB Jcksnville SB, MHC of IL (45.6) .. 0.75 0.57 17.07 17.07 96.75
LFED Leeds Fed Bksr HHC of MD (36.3)... 0.95 0.95 19.10 19.10 67.28
LIBB Liberty Bancorp MHC of NJ (47) ... 0.83 0.83 12.97 12.97 66.37
NBCP Niagara Bancorp. NY MHC (45.4) ... 0.64 0.62 13.66 13.66 48.91
NWSB Northwest Bcrp MHC of PA (30.8)... 0.67 0.67 12.14 11.66 59.03
PBCT Peoples Bank, MHC of CT (41.2) ... 1.89 1.20 26.38 24.49 155.88
PBHC Pathfinder BC MHC of NY (45.2) ... 0.84 0.72 15.22 13.98 76.37
PHSB Ppls Home SB, MHC of PA (45.0) ... 0.87 0.80 18.02 18.02 88.63
PLSK Pulaski SB, MHC of NJ (47.0) ..... 0.76 0.76 17.23 17.23 97.29
SBFL SB Fngr Lakes MHC of NY (33.1) ... 0.54 0.50 15.31 15.31 70.47
SKBO First Carnegie MHC of PA (45.0) .. 0.61 0.69 17.13 17.13 70.68
WAYN Wayne Svgs Bks MHC of OH (48.2) .. 1.04 0.98 19.75 19.75 114.41
WCFB Wbstr Cty FSB MHC of IA (45.6).... 0.89 0.89 18.93 18.93 52.69
- ----------
(1) Gross proceeds calculated as stock price multiplied by the number of shares
owned by the mutual holding company (i.e., non-public shares).
(2) Net increase in capital reflects gross proceeds less offering expenses,
contra-equity account for leveraged ESOP and deferred compensation account
for restricted stock plan:
Offering expense percent 2.00
ESOP percent purchase 8.00
Recognition plan percent 4.00
(3) Net increase in earnings reflects after-tax reinvestment income (assumes
ESOP and recognition plan do not generate reinvestment income), less
after-tax ESOP amortization and recognition plan vesting:
After-tax reinvestment 4.29
ESOP loan term (years) 10
Recog. plan vesting (yrs) 5
Effective tax rate 34.00
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
RP Financial, LC.
Page 4.23
o Conversion Expenses. Estimated conversion expenses have been provided
by the Bank, and are estimated to total $438,000 at the midpoint of
the valuation range.
o Effective Tax Rate. The Bank, in consultation with its outside
auditors, has determined the marginal effective tax rate on the net
reinvestment benefit of the conversion proceeds to be 41 percent.
o Reinvestment Rate. The pro forma section in the prospectus
incorporates a 5.37 percent reinvestment rate, equivalent to the one
year U.S. Treasury rate prevailing as of June 30, 1998.
o Stock Benefit Plans. The assumptions for the stock benefit plans,
i.e., the Employee Stock Ownership Plan ("ESOP") and Recognition Plan
("Recognition Plan"), are consistent with the structure as approved by
the Bank's Board and the disclosure in the pro forma section of the
prospectus. Specifically, the ESOP is assumed to purchase 8 percent of
the stock in conversion at the initial public offering price, with the
Holding Company funded ESOP loan amortized on a straight-line basis
over 10 years. The Recognition Plan is assumed to purchase 4 percent
of the stock in the aftermarket at a price equivalent to the initial
public offering price.
In our estimate of value, we assessed the relationship of the pro forma
pricing ratios relative to the Peer Group and the recent conversions.
RP Financial's valuation placed an emphasis on the following:
o P/E Approach. The P/E approach is generally the best indicator of
long-term value for a stock. Given the similarities between the Bank's
and the Peer Group's earnings composition and overall financial
condition, the P/E approach was carefully considered in this
valuation. At the same time, since reported earnings for the Peer
Group included certain unusual operating items, we also made
adjustments to earnings to arrive at a core earnings estimate and the
resulting price/core earnings ratio.
o P/B Approach. P/B ratios have generally served as a useful benchmark
in the valuation of thrift stocks, with the greater determinant of
long term value being earnings. RP Financial considered the P/B
approach to be a reliable indicator of value given current market
conditions, particularly the market for new conversions (many of the
recent conversions have reported not meaningful P/E ratios).
o P/A Approach. P/A ratios are generally a less reliable indicator of
market value, as investors do not place significant weight on the size
of total assets as a determinant of market value. Investors place
significantly greater weight on book value and earnings, which have
received greater weight in our valuation analysis. Furthermore, this
approach as set forth in the regulatory valuation guidelines does not
take into account the amount of stock purchases funded by deposit
withdrawals, thus understating the pro forma P/A ratio. At the same
time, the P/A ratio is an indicator of franchise value, and, in the
case of highly capitalized institutions, the high P/A ratios may limit
the investment community's willingness to pay market multiples for
earnings or book value when ROE is expected to be low.
The Bank has adopted Statement of Position ("SOP") 93-6, which will cause
earnings per share computations to be based on shares issued and outstanding
excluding unreleased ESOP shares. For purposes of preparing the pro forma
pricing analyses, we have reflected all shares issued in the offering, including
all ESOP
RP Financial, LC.
Page 4.24
shares, to capture the full dilutive impact, particularly since the ESOP shares
are economically dilutive, receive dividends and can be voted. However, we did
consider the impact of the adoption of SOP 93-6 in the valuation.
Based on the application of the three valuation approaches, taking into
consideration the valuation adjustments discussed above, RP Financial concluded
that the pro forma market value of a 100 percent interest in the Bank's
conversion stock was $9,500,000 at the midpoint, equal to 950,000 shares issued
at a per share value of $10.00 for the public shares.
1. Price-to-Earnings ("P/E"). The application of the P/E valuation method
requires calculating the Bank's pro forma market value by applying a valuation
P/E multiple (fully-converted basis) to the pro forma earnings base. Ideally,
the pro forma earnings base is composed principally of the Bank's recurring
earnings base, that is, earnings adjusted to exclude any one-time non-operating
items, plus the estimated after-tax earnings benefit of the reinvestment of net
conversion proceeds. Revere Federal's reported earnings were $317,000 for the
twelve months ended June 30, 1998, and did not include any items that were
deemed non-recurring in nature. Thus, for purposes of the valuation, the Bank's
core earnings were determined to equal $317,000 for the twelve months ended June
30, 1998. (Note: see Exhibit IV-9 for the adjustments applied to the Peer
Group's earnings in the calculation of core earnings).
Based on Revere Federal's reported and estimated core earnings, and
incorporating the impact of the pro forma assumptions discussed previously, the
Bank's pro forma core P/E multiple (fully-converted basis) at the $9,500,000
midpoint value was 19.86 times, which provided for a premium of 1.3 percent
relative to the Peer Group's average core P/E multiple (fully-converted basis)
of 19.61 times (see Table 4.5). The earnings multiple is consistent when taken
in context with the valuation adjustments outlined earlier as well as taking
into consideration the resulting P/B ratio.
2. Price-to-Book ("P/B"). The application of the P/B valuation method
requires calculating the Bank's pro forma market value by applying a valuation
P/B ratio (fully-converted basis) to Revere Federal's pro forma book value
(fully-converted basis). Based on the $9.5 million midpoint valuation, Revere
Federal's pro forma P/B ratio was 66.45 percent. In comparison to the average
P/B ratio for the Peer Group of 93.76 percent, Revere Federal's ratio was
discounted by 29.1 percent. RP Financial considered the discount under the P/B
approach to be reasonable, in light of the previously referenced valuation
adjustments and the nature of the calculation of the P/B ratio which
mathematically results in a ratio discounted to book value. Additionally, the
discounted P/B ratio is also warranted by the likelihood that speculation of a
second step conversion may be having an upward influence on the current stock
prices of some of the Peer Group companies. Comparatively, as a newly formed
MHC, speculation of a second step conversion is not expected to have a material
influence on the Bank's stock price.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.5
Public Market Pricing
Revere FS&LA of Revere, RA and the Comparables As of August 21, 1998
Market Per Share Data Pricing Ratios(3) Dividends(4)
Capitalization Core Book
Price/ Market 12-Mth Value/ Amount/ Payout
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE Share Yield Ratio(5)
Revere FS&LA of Revere,
Superrange 10.00 $ 12.56 0.42 13.50 23.53 74.06 12.64 74.06 23.53 0.00 0.00 0.00
Range Maximum 10.00 10.93 0.46 14.22 21.67 70.32 11.15 70.32 21.67 0.00 0.00 0.00
Range Midpoint 10.00 9.50 0.50 15.05 19.86 66.45 9.82 66.45 19.86 0.00 0.00 0.00
Range Minimum 10.00 8.08 0.56 16.17 17.85 61.86 8.46 61.86 17.85 0.00 0.00 0.00
SAIF-Insured Thrifts(7)
Averages 17.90 151.22 0.90 13.30 18.68 141.77 18.05 145.22 19.50 0.31 1.78 30.71
Medians -- -- -- -- 17.82 126.95 17.09 129.68 19.11 -- -- --
All Non-MHC State of HA(7)
Averages 21.16 84.13 1.31 14.19 15.60 160.35 15.42 164.31 17.13 0.37 1.86 29.72
Medians -- -- -- -- 13.97 157.68 15.31 158.85 16.87 -- -- --
Averages 16.47 235.70 0.80 17.42 19.61 93.76 21.68 95.14 20.38 0.30 1.62 32.65
Medians -- -- -- -- 19.62 91.62 20.13 91.62 20.09 -- -- --
ALLB Alliance Bank MHC of PA (19.9) 21.25 69.55 1.07 23.58 19.86 90.12 21.69 90.12 19.86 0.36 1.69 33.64
BCSB BCSB Bankcorp MHC of MD (38.6) 11.38 69.61 0.54 13.29 21.07 85.63 22.42 85.63 21.07 0.00 0.00 0.00
BRKL Brookline Bncp MHC of HA(47.0) 12.75 370.96 0.65 15.14 19.62 84.21 37.61 84.21 19.62 0.20 1.57 30.77
FFFL Fidelity Bcsh MHC of FL (47.9) 26.50 180.25 1.28 24.88 18.53 106.51 12.86 108.21 20.70 1.00 3.77 NM
SKBO First Carnegie MHC of PA(45.0) 13.25 30.48 0.69 17.13 21.72 77.35 18.75 77.35 19.20 0.30 2.26 43.48
GBNK Gaston Fed Bncp MHC of NC(47.0 12.50 56.21 0.60 14.26 20.83 87.66 28.56 87.66 20.83 0.20 1.60 33.33
HARS Harrls Fin. MHC of PA (24.9) 17.75 602.88 0.80 16.88 19,72 105.15 22.75 108.70 22.19 0.22 1.24 27.50
JXSB Jcksnvllle SB,MHC of IL (45.6) 16.75 31.96 0.57 17.07 22.33 98.13 17.31 98.13 29.39 0.30 1.79 52.63
LFED Leeds Fed Bksr MHC of MD (36.3 17.50 90.69 0.95 19.10 18.42 91.62 26.01 91.62 18.42 0.56 3.20 58.95
LIBB Liberty Bancorp MHC of NJ (47) 10.25 39.99 0.83 12.97 12.35 79.03 15.44 79.03 12.35 0.00 0.00 0.00
NBCP Niagara Bancorp of NY MHC(45.4 11.38 338.62 0.62 13.66 17.78 83.31 23.27 83.31 18,35 0.00 0.00 0.00
NWSB Northwest Bcrp MHC of PA (30.8 12.75 597.22 0.67 12.14 19.03 105.02 21.60 109.35 19.03 0.16 1.25 23.88
PBHC Pathfinder BC MHC of NY (45.2) 15.00 42.47 0.72 15.22 17.86 98.55 19.64 107.30 20.83 0.20 1.33 27.78
PBCT Peoples Bank, MHC of CT (41.2) 27.00 1731.51 1.20 26.38 14.29 102.35 17.32 110.25 22.50 0.84 3.11 70.00
PHSB Ppls Home SB, MHC of PA (45.0) 16.25 44.85 0.80 18.02 18.68 90.18 18.33 90.18 20.31 0.28 1.72 35.00
PLSK Pulaski SB, MHC of NJ (47.0) 14.88 31.37 0.76 17.23 19.58 86.36 15.29 86.36 19.58 0.30 2.02 39,47
SBFL SB Fngr Lakes MNC of NY (33.1) 16.00 57.12 0.50 15.31 29.63 104.51 20.13 104.51 NH 0.24 1.50 48.00
WAYN Wayne Svgs Bks MHC of OH (48.2 22.25 55.31 0.98 19.75 21.39 112.66 19.45 112.66 22.70 0.62 2.79 63.27
WCFB Wbstr Cty FSB MHC of IA (45.6) 17.63 37.27 0.89 18.93 19.81 93.13 33.46 93.13 19.81 0.00 0.00 0.00
Financial Characteristics(6)
Total Equity/ NPAs/ Reported Core
Assets Assets Assets ROA ROE ROA ROE
Revere FS&LA of Revere,
Superrange 99 17.07 0.27 0.54 3.15 0.54 3.15
Range Maximum 98 15.86 0.27 0.51 3.24 0.51 3.24
Range Midpoint 97 14.78 0.28 0.49 3.35 0.49 3.35
Range Minimum 95 13.68 0.28 0.47 3.47 0.47 3.47
SAIF-Insured Thrifts(7)
Averages 1,069 14.05 0.60 0.93 7.90 0.88 7.42
Medians -- -- -- -- -- -- --
All Non-MHC State of HA(7)
Averages 611 10.47 0.41 1.12 12.36 1.02 11.03
Medians -- -- -- -- -- -- --
Averages 1,178 23.52 0.52 1.18 5.11 1.11 4.76
Medians -- -- -- -- -- -- --
ALLB Alliance Bank MHC of PA (19.9) 321 24.07 1.06 1.16 4.57 1.16 4.57
BCSB BCSB Bankcorp MHC of MD (38.6) 310 26.19 NA 1.06 4.06 1.06 4.06
BRKL Brookline Bncp MHC of HA(47.0) 986 44.66 0.60 2.15 5.85 2.15 5.85
FFFL Fidelity Bcsh MHC of FL (47.9) 1,401 12.08 0.27 0.82 5.85 0.74 5.24
SKBO First Carnegie MHC of PA(45.0) 163 24.24 0.59 0.85 3.78 0.97 4.28
GBNK Gaston Fed Bncp MHC of NC(47.0 197 32.58 0.50 1.37 4.21 1.37 4.21
HARS Harrls Fin. MHC of PA (24.9) 2,650 21.64 0.66 1.22 5.46 1.09 4.85
JXSB Jcksnvllle SB,MHC of IL (45.6) 185 17.64 0.68 0.79 4.44 0.60 3.37
LFED Leeds Fed Bksr MHC of MD (36.3 349 28.39 0.03 1.45 5,07 1.45 5.07
LIBB Liberty Bancorp MHC of NJ (47) 259 19.54 0.35 1.25 6.40 1.25 6.40
NBCP Niagara Bancorp of NY MHC(45.4 1,455 27.93 0.29 1.31 4.69 1.27 4.54
NWSB Northwest Bcrp MHC of PA (30.8 2,765 20.57 0.50 1.24 5.62 1.24 5.62
PBHC Pathfinder BC MHC of NY (45.2) 216 19.93 1.30 1.11 5.57 0.95 4.77
PBCT Peoples Bank, MHC of CT (41.2) 9,997 16.92 0.70 1.36 7.78 0.86 4.94
PHSB Ppls Home SB, MHC of PA (45.0) 245 20.33 0.32 1.02 5.33 0.94 4.90
PLSK Pulaski SB, MHC of NJ (47.0) 205 17.71 0.63 0.81 4.70 0.81 4.70
SBFL SB Fngr Lakes MNC of NY (33.1) 284 19.27 0.32 0.73 3.57 0.68 3.30
WAYN Wayne Svgs Bks MHC of OH (48.2 284 17.26 0.49 0.93 5.33 0.87 5.03
WCFB Wbstr Cty FSB MHC of IA (45.6) 111 35.93 0.07 1.68 4.74 1.68 4.74
(1) Current stock price of minority stock. Average of High/Low or Bid/Ask price
per share.
(2) EPS (estimated core earnings) is based on reported trailing twelve month
data, adjusted to omit non-operating gains and losses (including the SAIF
assessment) on a tax effected basis. Public MHC data reflects additional
earnings from reinvestment of proceeds of second step conversion.
3) P/E - Price to Earnings; P/B - Price to Book; P/A - Price to Assets; P/TB -
Price to Tangible Book; and P/CORE - Price to Core Earnings. Ratios are pro
forma assuming a second step conversion to full stock form.
4) Indicated twelve month dividend, based on last quarterly dividend declared.
5) Indicated twelve month dividend as a percent of trailing twelve month
estimated core earnings (earnings adjusted to reflect second step
conversion).
6) ROA (return on assets) and ROE (return on equlty) are Indicated ratios
based on trailing twelvemEnth earnings and average equlty and assets
balances.
7) Excludes from averages and medians those companies the subject of actual or
rumored acquisition activities or unusual operating characteristics.
8) Figures estimated by RP Financial to reflect a second step conversion of
the MHC to full stock form.
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been obtained
from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.
RP Financial, LC.
Page 4.26
RP Financial also considered the P/B ratios of the most recent MHC
conversions in its valuation analysis. The five publicly-traded MHC offerings
completed during 1998 as of August 21, 1998 were trading at an average P/B ratio
of 84.0 percent. At the midpoint value of $9,500,000, Revere Federal's pro forma
P/B ratio (fully-converted basis) of 66.45 percent was discounted by 20.9
percent from the average P/B ratio of those five companies.
3. Price-to-Assets ("P/A"). The P/A valuation methodology determines market
value by applying a valuation P/A ratio (fully-converted basis) to the Bank's
pro forma asset base, conservatively assuming no deposit withdrawals are made to
fund stock purchases. In all likelihood there will be deposit withdrawals, which
results in understating the pro forma P/A ratio which is computed herein. At the
midpoint of the valuation range, Revere Federal's full conversion value equaled
9.82 percent of pro forma assets. Comparatively, the Peer Group companies
exhibited an average P/A ratio (fully-converted basis) of 21.68 percent, which
implies a 54.7 percent discount being applied to the Bank's pro forma P/A ratio
(fully-converted basis).
* * * * * * * * * *
We believe that the Bank's pricing discounts relative to the Peer Group are
appropriately reflective of the valuation adjustments discussed above.
Valuation Conclusion
Based on the foregoing, it is our opinion that, as of August 21, 1998, the
estimated aggregate pro forma market value of the shares to be issued
immediately following the conversion, both shares issued publicly as well as to
the MHC, was $9,500,000 at the midpoint, equal to 950,000 shares offered at a
per share value of $10.00. Pursuant to conversion guidelines, the 15 percent
offering range indicates a minimum value of $8,075,000, and a maximum value of
$10,925,000. Based on the $10.00 per share offering price determined by the
Board, this valuation range equates to total shares outstanding of 807,500 at
the minimum and 1,092,500 at the maximum. In the event the appraised value is
subject to an increase, the aggregate pro forma market value may be increased up
to a supermaximum value of $12.564 million without a resolicitation. Based on
the $10.00 per share offering price, the supermaximum value would result in
total shares outstanding of 1,256,375. The Board of Directors has established a
public offering range such that the public ownership of the Holding Company will
constitute a 47 percent ownership interest. Accordingly, the offering to the
public of the minority stock will equal $3,795,250 at the minimum, $4,465,000 at
the midpoint, $5,134,750 at the maximum and $5,904,960 at the supermaximum. The
pro forma valuation calculations relative to the Peer Group (fully-converted
basis) are shown in Table 4.5 and
RP Financial, LC.
Page 4.27
are detailed in Exhibit IV-7 and Exhibit IV-8; the pro forma valuation
calculations relative to the Peer Group based on reported financials are shown
in Table 4.6 and are detailed in Exhibits IV-10 and IV-11.
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.6
Public Market Pricing
Revere Federal Savings of MA and the Comparables
As of August 21, 1998
Market Per Share Data Pricing Ratios(3) Dividends(4)
Capitalization --------------- ---------------------------------- ----------------------
--------------- Core Book
Price/ Market 12-Mth Value/ Amount/ Payout
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE Share Yield Ratio(5)
------- ------- ------- ------- ------ ------ ------- ------ ------- ------- ----- --------
($) ($Mil) ($) ($) (X) (%) (%) (%) (X) ($) (%) (%)
Revere FS&LA of Revere, MA
- ----------------------------
Superrange 10.00 $5.90 0.33 8.76 30.70 114.16 13.45 114.16 30.70 0.00 0.00 0.00
Range Maximum 10.00 5.13 0.36 9.47 27.62 105.64 11.78 105.64 27.62 0.00 0.00 0.00
Range Midpoint 10.00 4.47 0.40 10.28 24.77 97.29 10.31 97.29 24.77 0.00 0.00 0.00
Range Minimum 10.00 3.80 0.46 11.38 21.73 87.89 8.82 87.89 21.73 0.00 0.00 0.00
SAIF-Insured Thrifts(7)
- -----------------------
Averages 17.90 151.22 0.90 13.30 18.68 141.77 18.05 145.22 19.50 0.31 1.78 30.71
Medians --- --- --- --- 17.82 126.95 17.09 129.68 19.11 --- --- ---
Comparable Group Averages
- -------------------------
Averages 16.47 92.53 0.54 9.05 24.81 188.39 24.81 186.56 26.68 0.30 1.62 13.07
Medians --- --- --- --- 26.15 181.47 22.77 181.47 27.34 --- --- ---
Comparable Group
- ----------------
ALLB Alliance Bank MHC of PA (19.9) 21.25 13.81 0.62 8.93 NM 237.96 25.50 237.96 NM 0.36 1.69 11.53
BCSB BCSB Bankcorp MHC of MD (38.6) 11.38 26.87 0.36 7.28 NM 156.32 25.44 156.32 NM 0.00 0.00 0.00
BRKL Brookline Bncp MHC of MA(47.0) 12.75 174.36 0.47 9.33 27.13 136.66 45.39 136.66 27.13 0.20 1.57 20.00
FFFL Fidelity Bcsh MHC of FL (47.9) 26.50 86.39 0.92 13.01 24.77 203.69 13.65 209.98 28.80 1.00 3.77 NM
SKBO First Carnegie MHC of PA(45.0) 13.25 13.71 0.50 10.86 NM 122.01 20.57 122.01 26.50 0.30 2.26 27.00
GBNK Gaston Fed Bncp MHC of NC(47.0 12.50 26.41 0.43 8.56 29.07 146.03 32.83 146.03 29.07 0.20 1.60 21.85
HARS Harris Fin. MHC of PA (24.9) 17.75 149.85 0.45 5.41 NM 328.10 26.67 NM NM 0.22 1.24 12.15
JXSB Jcksnville SB,MHC of IL (45.6) 16.75 14.56 0.33 9.23 NM 181.47 18.84 181.47 NM 0.30 1.79 NM
LFED Leeds Fed Bksr MHC of MD (36.3 17.50 32.95 0.66 9.52 26.52 183.82 30.33 183.82 26.52 0.56 3.20 NM
LIBB Liberty Bancorp MHC of NJ (47) 10.25 18.80 0.69 8.30 14.86 123.49 16.61 123.49 14.86 0.00 0.00 0.00
NBCP Niagara Bancorp of NY MHC(45.4 11.38 153.65 0.46 8.31 23.71 136.94 26.12 136.94 24.74 0.00 0.00 0.00
NWSB Northwest Bcrp MHC of PA (30.8 12.75 184.08 0.44 4.55 28.98 280.22 24.79 313.27 28.98 0.16 1.25 11.21
PBHC Pathfinder BC MHC of NY (45.2) 15.00 19.19 0.50 8.15 24.19 184.05 21.65 217.08 30.00 0.20 1.33 18.07
PBCT Peoples Bank, MHC of CT (41.2) 27.00 746.09 0.80 13.17 18.12 205.01 18.92 239.36 NM 0.84 3.11 NM
PHSB Ppls Home SB, MHC of PA (45.0) 16.25 20.18 0.56 10.33 25.79 157.31 20.08 157.31 29.02 0.28 1.72 22.50
PLSK Pulaski SB, MHC of NJ (47.0) 14.88 14.73 0.55 10.44 27.05 142.53 16.44 142.53 27.05 0.30 2.02 25.62
SBFL SB Fngr Lakes MHC of NY (33.1) 16.00 18.88 0.22 6.10 NM 262.30 22.77 262.30 NM 0.24 1.50 NM
WAYN Wayne Svgs Bks MHC of OH (48.2 22.25 26.63 0.68 9.83 NM 226.35 21.29 226.35 NM 0.62 2.79 NM
WCFB Wbstr Cty FSB MHC of IA (45.6) 17.63 16.96 0.64 10.67 27.55 165.23 39.68 165.23 27.55 0.00 0.00 0.00
Financial Characteristics(6)
--- -----------------------------------------------------
Reported Core
Total Equity/ NPAs/ --------------- ---------------
Assets Assets Assets ROA ROE ROA ROE
- ------- ------- ------- ------- ------- ------- -------
($Mil) (%) (%) (%) (%) (%) (%)
Revere Federal Savings of MA
- ----------------------------
Superrange 93 11.78 0.29 0.44 3.72 0.44 3.72
Range Maximum 93 11.15 0.29 0.43 3.82 0.43 3.82
Range Midpoint 92 10.59 0.29 0.42 3.93 0.42 3.93
Range Minimum 92 10.03 0.29 0.41 4.04 0.41 4.04
SAIF-Insured Thrifts(7)
- -----------------------
Averages 1,069 14.05 0.60 0.93 7.90 0.88 7.42
Medians --- --- --- --- --- --- ---
Comparable Group Averages
- -------------------------
Averages 1,055 14.21 0.52 0.94 7.33 0.87 6.57
Medians --- --- --- --- --- --- ---
Comparable Group
- ----------------
ALLB Alliance Bank MHC of PA (19.9) 273 10.72 1.06 0.80 7.09 0.80 7.09
BCSB BCSB Bankcorp MHC of MD (38.6) 274 16.27 NA 0.80 4.95 0.80 4.95
BRKL Brookline Bncp MHC of MA(47.0) 817 33.21 0.60 1.92 8.85 1.92 8.85
FFFL Fidelity Bcsh MHC of FL (47.9) 1,321 6.70 0.27 0.66 8.52 0.57 7.32
SKBO First Carnegie MHC of PA(45.0) 148 16.86 0.59 0.65 4.26 0.77 5.08
GBNK Gaston Fed Bncp MHC of NC(47.0 171 22.48 0.50 1.13 5.02 1.13 5.02
HARS Harris Fin. MHC of PA (24.9) 2,260 8.13 0.66 0.88 10.96 0.72 8.96
JXSB Jcksnville SB,MHC of IL (45.6) 170 10.38 0.68 0.59 5.64 0.38 3.65
LFED Leeds Fed Bksr MHC of MD (36.3 299 16.50 0.03 1.18 7.20 1.18 7.20
LIBB Liberty Bancorp MHC of NJ (47) 241 13.45 0.35 1.12 8.31 1.12 8.31
NBCP Niagara Bancorp of NY MHC(45.4 1,296 19.08 0.29 1.10 5.78 1.06 5.54
NWSB Northwest Bcrp MHC of PA (30.8 2,410 8.85 0.50 0.95 10.14 0.95 10.14
PBHC Pathfinder BC MHC of NY (45.2) 196 11.76 1.30 0.91 7.74 0.73 6.24
PBCT Peoples Bank, MHC of CT (41.2) 9,149 9.23 0.70 1.18 13.45 0.63 7.22
PHSB Ppls Home SB, MHC of PA (45.0) 223 12.76 0.32 0.81 7.30 0.72 6.49
PLSK Pulaski SB, MHC of NJ (47.0) 191 11.54 0.63 0.63 5.86 0.63 5.86
SBFL SB Fngr Lakes MHC of NY (33.1) 251 8.68 0.32 0.40 4.39 0.34 3.72
WAYN Wayne Svgs Bks MHC of OH (48.2 260 9.41 0.49 0.72 7.72 0.66 7.10
WCFB Wbstr Cty FSB MHC of IA (45.6) 94 24.02 0.07 1.43 6.09 1.43 6.09
(1) Average of high/low or bid/ask price per share.
(2) EPS (core basis) is based on actual trailing twelve month data, adjusted to
omit the impact of non-operating items (including the SAIF assessment) on a
tax effected basis, and is shown on a pro forma basis where appropriate.
(3) P/E = Price to Earnings; P/B = Price to Book; P/A = Price to Assets; P/TB =
Price to Tangible Book; and P/CORE = Price to Core Earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend declared.
(5) Indicated twelve month dividend as a percent of trailing twelve month
estimated core earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and total
assets balances.
(7) Excludes from averages and medians those companies the subject of actual or
rumored acquisition activities or unusual operating characteristics.
Source: Corporate reports, offering circulars, and RP Financial, Inc.
calculations. The information provided in this report has been
obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
EXHIBITS
RP Financial, LC.
LIST OF EXHIBITS
Exhibit
Number Description
I-1 Map of Office Location
I-2 Revere Federal's Audited Financial Statements
I-3 Key Operating Ratios
I-4 Investment Portfolio Composition
I-5 Yields and Costs
I-6 Loan Loss Allowance Activity
I-7 Fixed Rate and Adjustable Rate Loans
I-8 Gap Analysis
I-9 Loan Portfolio Composition
I-10 Contractual Maturity By Loan Type
I-11 Loan Originations, Purchases, and Sales
I-12 Non-Performing Assets
I-13 Classified Assets
I-14 Deposit Composition
II-1 List of Branch Offices
II-2 Historical Interest Rates
II-3 Demographic/Economic Reports
II-4 Sources of Personal Income/Employment Sectors
III-1 General Characteristics of Publicly-Traded Institutions
III-2 MHC Peer Institutions
RP Financial, LC.
LIST OF EXHIBITS(continued)
IV-1 Stock Prices: August 21, 1998
IV-2 Historical Stock Price Indices
IV-3 Historical Thrift Stock Indices
IV-4 Market Area Acquisition Activity
IV-5 Directors and Management Summary Resumes
IV-6 Pro Forma Regulatory Capital Ratios
IV-7 Pro Forma Analysis Sheet-Full Conversion Basis
IV-8 Pro Forma Effect of Conversion Proceeds-Full Conversion Basis
IV-9 Peer Group Core Earnings Analysis
IV-10 Pro Forma Analysis Sheet-MHC Basis
IV-8 Pro Forma Effect of Conversion Proceeds-MHC Basis
V-1 Firm Qualifications Statement
EXHIBIT I-1
Revere Federal Savings
Map of Office Location
[GRAPHIC OMITTED]
EXHIBIT I-2
Revere Federal Savings
Audited Financial Statements
[Incorporated by Reference]
EXHIBIT I-3
Revere Federal Savings
Key Operating Ratios
AT OR FOR THE
NINE MONTHS ENDED
JUNE 30, AT OR FOR THE YEAR ENDED SEPTEMBER 30,
------------------------ ------------------------------------------------------
1998 1997 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS)
SELECTED FINANCIAL RATIOS AND OTHER DATA(2)
PERFORMANCE RATIOS:
Return on average assets.................... 0.31% 0.59% 0.56% 0.13% 0.86% 0.88% 0.89%
Return on average equity.................... 4.74 9.04 8.66 1.84 11.17 10.98 9.59
Average equity to average assets............ 6.60 6.49 6.52 7.13 7.69 8.00 9.24
Equity to total assets at end of period..... 7.18 6.37 6.95 6.99 7.79 8.04 8.03
Average interest rate spread................ 3.16 2.88 2.89 2.72 2.99 3.71 4.50
Net interest margin......................... 3.48 3.13 3.16 3.00 3.26 3.94 4.74
Average interest-earning assets to average
interest-bearing liabilities ............. 107.52 106.01 106.16 106.60 106.66 107.06 107.57
Total noninterest expense to average assets. 2.81 2.20 2.24 2.63 2.43 2.33 2.78
Efficiency ratio(3)......................... 78.63 68.89 69.64 87.59 65.36 59.43 59.50
REGULATORY CAPITAL RATIOS:
Tangible capital............................ 6.63 6.66 6.54 6.69 7.56 7.68 8.03
Core capital................................ 6.63 6.66 6.54 6.69 7.56 7.68 8.03
Risk-based capital.......................... 17.89 20.21 21.33 24.03 33.42 33.12 28.12
ASSET QUALITY RATIOS:
Non-performing loans as a percent
of loans.................................. 0.57 0.00 0.38 0.08 0.58 0.91 0.92
Non-performing assets as a percent
of total assets........................... 0.30 0.00 0.18 0.04 0.18 0.50 0.65
Allowance for loan losses as a percent
of loans ................................. 1.07 0.94 0.91 0.97 0.96 0.90 0.30
Allowance for loan losses as a percent
of non-performing loans .................. 188.12 N/A 240.03 1,159.67 164.86 98.33 32.76
NUMBER OF:
Loans outstanding........................... 834 717 775 569 440 436 487
Deposit accounts............................ 7,763 6,666 6,907 6,008 5,100 4,458 4,079
Full-service offices........................ 1 1 1 1 1 1 1
Full-time equivalent employees ............. 26 19 22 17 13 12 12
- -------------
(1) The Association adopted Statement of Financial Accounting Standards
("SFAS") No. 115, "Accounting for Certain Investments in Debt and Equity
Securities" ("SFAS No. 115") as of September 30, 1994.
(2) Asset Quality Ratios and Regulatory Capital Ratios are end of period
ratios. With the exception of end of period ratios, all ratios are based on
average monthly balances during the indicated periods and are annualized
where appropriate.
(3) The efficiency ratio represents the ratio of noninterest expenses divided
by the sum of net interest income and noninterest income.
EXHIBIT I-4
Revere Federal Savings
Investment Portfolio Composition
AT SEPTEMBER 30,
AT JUNE 30, ---------------------------------------------------------
1998 1997 1996 1995
----------------------------------------------------------------------------
AMORTIZED FAIR AMORTIZED FAIR AMORTIZED FAIR AMORTIZED FAIR
COST VALUE COST VALUE COST VALUE COST VALUE
----------------------------------------------------------------------------
(In thousands)
Held-to-maturity:
Investment securities ......................... $ 6,499 $ 6,430 $ 9,202 $ 9,207 $ 8,500 $ 8,502 $12,552 $12,610
Mortgage-backed and mortgage-related securities 21,635 22,016 25,144 25,458 24,945 24,609 23,085 22,940
5,162 5,212 5,807 5,842 7,235 7,245 6,105 6,119
------- ------- ------- ------- ------- ------- ------- -------
Asset-backed securities ....................... 33,296 33,658 40,153 40,507 40,680 40,356 41,742 41,669
Available-for-sale(1) .............................. 24 849 24 636 24 441 24 312
------- ------- ------- ------- ------- ------- ------- -------
Total securities ............................ $33,320 $34,507 $40,177 $41,143 $40,704 $40,797 $41,766 $41,981
======= ======= ======= ======= ======= ======= ======= =======
- ------------------
(1) Consists of marketable equity securities.
EXHIBIT I-5
Revere Federal Savings
Yields and Costs
FOR THE NINE MONTHS ENDED JUNE 30,
AT JUNE 30, --------------------------------------------------------------------
1998 1998 1997
---------------------------------------------------------------------------------------------
WEIGHTED AVERAGE AVERAGE
AVERAGE AVERAGE YIELD/ AVERAGE YIELD/
BALANCE YIELD (1) BALANCE INTEREST COST BALANCE INTEREST COST
------------ -------- --------- -------- ----- ----------- ---------- ----------
(Dollars in thousands)
ASSETS:
INTEREST-EARNING ASSETS:
Interest-bearing deposits .......... $ 799 4.77% $ 478 $ 12 3.36% $ 427 $ 13 4.07%
Federal funds sold ................. 2,909 5.88 5,395 222 5.50 1,481 51 4.60
Investment securities(1) ........... 35,663 6.90 36,206 1,898 7.01 44,608 2,321 6.96
Loans(2) ........................... 46,825 8.02 44,483 2,875 8.64 35,050 2,182 8.32
------- ------ ------ ------- ---- ------- -------
Total interest-earning assets .... 86,196 7.45 86,562 5,007 7.73 81,566 4,567 7.49
Noninterest-earning assets ........... 2,584 2,307 ------- 2,038 -------
------- ------- -------
Total assets ..................... $88,780 $88,869 $83,604
======= ======= =======
LIABILITIES AND EQUITY:
INTEREST-BEARING LIABILITIES:
NOW accounts ....................... $ 4,526 1.07% $ 4,191 $ 33 1.05% $ 3,361 $ 25 0.99%
Regular savings accounts ........... 16,352 1.41 15,018 142 1.26 14,520 119 1.10
Money market accounts .............. 1,991 3.13 1,555 36 3.10 660 15 3.04
Time deposits ...................... 36,306 5.48 35,397 1,485 5.61 32,266 1,355 5.61
------- ------- ------- ---- ------- -------
Total interest-bearing deposits .. 59,175 3.94 56,161 1,696 4.04 50,807 1,514 3.98
Advances from FHLB ................. 19,284 5.45 24,344 1,055 5.79 26,137 1,141 5.84
------- ------- ------- ------- -------
Total interest-bearing liabilities 78,459 4.31 80,505 2,751 4.57 76,944 2,655 4.61
------- -------
Demand deposits ...................... 3,801 2,441 1,047
Other liabilities .................... 146 61 184
------- ------- -------
Total liabilities ................ 82,406 83,007 78,175
Equity ............................... 6,374 5,862 5,429
------- ------- -------
Total liabilities and equity ..... $88,780 $88,869 $83,604
======= ======= =======
Net interest income .................. $ 2,256 $1,912
======= ======
Net interest rate spread(3) .......... 3.16% 2.88%
==== ====
Net interest margin(4) ............... 3.14% 3.48% 3.13%
==== ==== ====
Ratio of interest-bearing assets to ..
interest-bearing liabilities....... 109.86% 107.52% 106.01%
====== ====== ======
- -----------------
(1) Includes investment securities available-for-sale, held-to-maturity and
stock in FHLB-Boston.
(2) Amount is net of deferred loan origination fees, allowance for loan losses
and includes non-accrual loans.
(3) Net interest rate spread represents the difference between the weighted
average yield on interest-earning assets and the weighted average cost of
interest-bearing liabilities.
(4) Net interest margin represents net interest income as a percentage of
average interest-earning assets.
EXHIBIT I-5
Revere Federal Savings
Yields and Costs
FOR THE YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------------------------------------------
1997 1996 1995
----------------------------- ------------------------------ ------------------------------
AVERAGE AVERAGE AVERAGE
AVERAGE YIELD/ AVERAGE YIELD/ AVERAGE YIELD/
BALANCE INTEREST COST ALANCE INTEREST COST BALANCE INTEREST COST
------------ -------- ------- -------- ----------- -------- ------- ------------ --------
ASSETS: (DOLLARS IN THOUSANDS)
INTEREST-EARNING ASSETS:
Interest-bearing deposits......... $ 453 $ 16 3.53% $ 237 $ 14 5.91% $ 460 $ 25 5.43%
Federal funds sold................ 1,308 69 5.28 730 43 5.89 1,700 99 5.82
Investment securities(1).......... 44,092 3,068 6.96 40,908 2,690 6.58 38,341 2,529 6.60
Loans(2).......................... 36,324 3,027 8.33 27,849 2,363 8.49 20,568 1,794 8.72
-------- ------- -------- ------- -------- -------
Total interest-earning assets... 82,177 6,180 7.52 69,724 5,110 7.33 61,069 4,447 7.28
------- ------- -------
Noninterest-earning assets........ 2,144 2,078 1,936
-------- -------- --------
Total assets.................... $ 84,321 $ 71,802 $ 63,005
======== ======== ========
LIABILITIES AND EQUITY:
INTEREST-BEARING LIABILITIES:
NOW accounts...................... $ 3,443 35 1.02% $ 2,041 $ 23 1.13% $ 1,707 28 1.64%
Regular savings accounts.......... 14,548 161 1.11 14,743 157 1.06 15,436 230 1.49
Money market accounts............. 739 23 3.11 212 6 2.83 6 3.30
Time deposits..................... 32,634 1,839 5.64 30,763 1,784 5.79 26,660 1,428 5.35
-------- ------- -------- ------- -------- ------
Total interest-bearing deposits. 51,364 2,058 4.02 47,759 1,970 4.11 43,809 1,686 3.84
Advances from FHLB................ 26,044 1,527 5.86 17,648 1,048 5.94 13,445 768 5.71
-------- ------- -------- ------- -------- ------
Total interest-bearing liabilities 77,408 3,585 4.63 65,407 3,018 4.61 57,254 2,454 4.29
------- ------- ------
Demand deposits........................ 1,219 914 586
Other liabilities...................... 199 362 323
-------- -------- --------
Total liabilities............... 78,826 66,683 58,163
Equity................................. 5,495 5,119 4,842
-------- -------- --------
Total liabilities and equity.... $ 84,321 $ 71,802 $ 63,005
======== ======== ========
Net interest income.................... $ 2,595 $ 2,092 $ 1,993
======= ======= =======
Net interest rate spread(3)............ 2.89% 2.72% 2.99%
==== ==== ====
Net interest margin(4)................. 3.16% 3.00% 3.26%
==== ==== ====
Ratio of interest-earning assets to
interest-bearing liabilities...... 106.16% 106.60% 106.66%
====== ====== ======
- ------------------
(1) Includes investment securities available-for-sale, held-to-maturity and
stock in FHLB-Boston.
(2) Amount is net of deferred loan origination fees, allowance for loan losses
and includes non-accrual loans.
(3) Net interest rate spread represents the difference between the weighted
average yield on interest-earning assets and the weighted average cost of
interest-bearing liabilities.
(4) Net interest margin represents net interest income as a percentage of
average interest-earning assets.
EXHIBIT I-6
Revere Federal Savings
Loan Loss Allowance Activity
AT OR FOR THE NINE
MONTHS ENDED AT OR FOR THE YEAR ENDED SEPTEMBER 30,
JUNE 30,
--------------------------- -----------------------------------------------------------
1998 1997 1997 1996 1995 1994 1993
------------- ------------- ------------ ------------ ------------ ----------- -------
(DOLLARS IN THOUSANDS)
Balance at beginning of period............ $ 377 $ 325 $ 325 $ 206 $ 187 $ 67 $161
----- ----- ----- ------ ----- ---- ----
Provision (benefit) for loan losses....... 175 45 60 148 (2) 144 155
----- ----- ----- ------ ----- ---- ----
Charge-offs:
Mortgage loans:
One-to four-family................... --- --- --- 16 --- 23 251
Commercial real estate............... --- --- --- --- --- --- ---
Construction and land................ --- --- --- --- --- --- ---
Commercial loans....................... --- --- --- --- --- --- ---
Consumer loans:
Home equity lines.................... --- --- --- --- --- --- ---
Secured by deposit accounts.......... --- --- --- --- --- --- ---
Auto loans........................... 40 --- --- --- --- --- ---
Other consumer loans................. 6 --- 8 13 --- 1 ---
--- ----- --- ------ ----- --- -----
Total charge-offs.................... 46 --- 8 29 --- 24 251
---- ----- --- ------ ----- ---- ----
Recoveries................................ --- --- --- --- 21 --- 2
----- ----- ----- ------ ----- ---- ---
Balance at end of period.................. $ 506 $ 370 $ 377 $ 325 $ 206 $187 $ 67
===== ===== ===== ====== ===== ==== ====
Ratio of net charge-offs to average loans
outstanding during the period(1)....... 0.14% 0.00% 0.02% 0.10% (0.10)% 0.11% 1.08%
==== ==== ===== ===== ===== ==== ====
Allowance for loan losses as a
percent of loans ...................... 1.07% 0.94% 0.91% 0.97% 0.96% 0.90% 0.3
===== ==== ==== ==== ==== ==== ===
Allowance for loan losses as a
percent of non-performing loans........ 188.12% N/A 240.03% 1,159.67% 164.86% 98.33% 32.76%
====== ====== ======== ====== ===== =====
- --------------
(1) Ratio is annualized for the nine month periods.
EXHIBIT I-7
Revere Federal Savings
Fixed Rate and Adjustable Rate Loans
DUE AFTER JUNE 30, 1999
---------------------------------------------------------------------
FIXED ADJUSTABLE TOTAL
---------------------------------------------------------------------
(In thousands)
Mortgage loans:
One-to four-family ........ $24,597 $ 122 $24,719
Commercial real estate .... 987 2,597 3,584
Construction and land ..... 811 382 1,193
------- ------- -------
Total mortgage loans .... 26,395 3,101 29,496
------- ------- -------
Commercial loans ............... 1,344 -- 1,344
------- ------- -------
Consumer loans:
Home equity lines ......... -- -- --
Secured by deposit accounts 117 -- 117
Auto loans ................ 445 -- 445
Other consumer loans ...... 5 -- 5
------- ------- -------
Total consumer loans .... 567 -- 567
------- ------- -------
Total loans ............. $28,306 $ 3,101 $31,407
======= ======= =======
DUE AFTER SEPTEMBER 30, 1998
----------------------------------------------------------------------
FIXED ADJUSTABLE TOTAL
----------------------------------------------------------------------
(In thousands)
Mortgage loans:
One-to four-family ........ $23,882 $ 235 $24,117
Commercial real estate .... 915 1,436 2,351
Construction and land ..... 315 -- 315
------- ------- -------
Total mortgage loans .... 25,112 1,671 26,783
------- ------- -------
Commercial loans ............... 635 -- 635
------- ------- -------
Consumer loans:
Home equity lines ......... -- -- --
Secured by deposit accounts 352 -- 352
Auto loans ................ 428 -- 428
Other consumer loans ...... 36 -- 36
------- ------- -------
Total consumer loans .... 816 -- 816
------- ------- -------
Total loans ............. $26,563 $ 1,671 $28,234
======= ======= =======
EXHIBIT I-8
Revere Federal Savings
Gap Analysis
Net Portfolio Value NPV as % of Present Value of Assets
Change --------------------------- ----------------------------------------------------
In Rates $ Amount $ Change % Change NPV Ratio Change
- -----------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)
+400 bp $ 6,520 $ (3,143) (33)% 7.79% (274) bp
+300 bp 7,531 (2,132) (22)% 8.78% (176) bp
+200 bp 8,466 (1,197) (12)% 9.63% (91) bp
+100 bp 9,243 (420) (4)% 10.28% (26) bp
0 bp 9,663 --- ---% 10.53% --- bp
-100 bp 9,795 132 1% 10.50% (4) bp
-200 bp 9,489 (174) (2)% 10.03% (50) bp
-300 bp 9,295 (368) (4)% 9.68% (86) bp
-400 bp 9,257 (406) (4)% 9.46% (107) bp
EXHIBIT I-9
Revere Federal Savings
Loan Portfolio Composition
AT SEPTEMBER 30,
AT JUNE 30, ------------------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
------------------ ---------------- ---------------- ---------------- --------------- ---------------
PERCENT PERCENT PERCENT PERCENT PERCENT PERCENT
AMOUNT OF TOTAL AMOUNT OF TOTAL AMOUNT OF TOTAL AMOUNT OF TOTAL AMOUNT OF TOTAL AMOUNT OF TOTAL
------ -------- ------ -------- ------ -------- ------ -------- ------ -------- ------ --------
(DOLLARS IN THOUSANDS)
Mortgage loans:
One- to four-family .......$34,495 72.79% $ 32,928 79.11% $ 30,046 89.84% $ 20,630 95.91%$ 20,349 97.85%$ 21,825 98.02%
Commercial real estate .... 4,157 8.77 2,577 6.19 460 1.38 -- -- -- -- -- --
Construction and land ..... 1,518 3.2 815 1.96 1,075 3.21 174 0.81 80 0.38 88 0.4
------ ----- ------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total mortgage loans .... 40,170 84.76 36,320 87.26 31,581 94.43 20,804 96.72 20,429 98.23 21,913 98.42
------ ----- ------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Commercial loans ............. 2,789 5.89 1,684 4.04 49 0.15 -- -- -- -- -- --
------ ----- ------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Consumer loans:
Home equity lines ......... 3,301 6.96 2,761 6.63 1,303 3.9 364 1.69 30 0.14 -- --
Secured by deposit accounts 621 1.31 374 0.9 370 1.11 314 1.46 266 1.28 242 1.09
Auto loans ................ 425 0.90 413 0.99 121 0.36 -- -- -- -- -- --
Other consumer loans ...... 84 0.18 73 0.18 19 0.05 27 0.13 72 0.35 109 0.49
------ ----- ------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total consumer loans .... 4,431 9.35 3,621 8.7 1,813 5.42 705 3.28 368 1.77 351 1.58
------ ----- ------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total loans receivable .. 47,390 100.00% 41,625 100.00% 33,443 100.00% 21,509 100.00% 20,797 100.00% 22,264 100.00%
====== ====== ====== ====== ====== ======
LESS:
Allowance for loan losses . (506) (377) (325) (206) (187) (67)
Deferred loan origination
fees, net ............... (59) (73) (72) (30) (31) (39)
-------- -------- -------- ------- -------
Loans, net ..............$46,825 $ 41,175 $ 33,046 $ 21,273 $20,579 $22,158
======== ======== ======== ======== ======= =======
EXHIBIT I-10
Revere Federal Savings
Contractual Maturity By Loan Type
AT JUNE 30, 1998
---------------------------------------------------------------------------------
MORTGAGE LOANS
---------------------------------------------------------------------------------
ONE- TO FOUR- COMMERCIAL CONSTRUCTION
FAMILY REAL ESTATE AND LAND COMMERCIAL CONSUMER TOTAL
---------------------------------------------------------------------------------
Amount due: (In thousands)
One year or less .................. $ 9,776 $ 573 $ 325 $ 1,445 $ 3,864 $ 15,983
-------- -------- -------- -------- -------- --------
After one year:
More than one year to three years . 72 452 90 99 290 1,003
More than three years to five years 476 2,008 85 763 230 3,562
More than five years to ten years . 2,240 204 -- 425 -- 2,869
More than ten years to twenty years 6,551 920 150 57 47 7,725
More than twenty years ............ 15,380 -- 868 -- -- 16,248
-------- -------- -------- -------- -------- --------
Total due after one year ........ 24,719 3,584 1,193 1,344 567 31,407
-------- -------- -------- -------- -------- --------
Total amount due ................ $ 34,495 $ 4,157 $ 1,518 $ 2,789 $ 4,431 47,390
======== ======== ======== ======== ======== ========
Less:
Allowance for loan losses ......... (506)
Deferred loan origination fees, net (59)
--------
Loans, net ............................. $ 46,825
========
EXHIBIT I-10
Revere Federal Savings
Contractual Maturity By Loan Type
AT SEPTEMBER 30, 1997
---------------------------------------------------------------------------------
MORTGAGE LOANS
---------------------------------------------------------------------------------
ONE- TO FOUR- COMMERCIAL CONSTRUCTION
FAMILY REAL ESTATE AND LAND COMMERCIAL CONSUMER TOTAL
---------------------------------------------------------------------------------
Amount due: (In thousands)
One year or less .................. $ 8,811 $ 226 $ 500 $ 1,049 $ 2,805 $ 13,391
-------- -------- -------- -------- -------- --------
After one year:
More than one year to three years . 69 374 -- 105 252 800
More than three years to five years 495 1,016 113 471 262 2,357
More than five years to ten years . 1,746 362 -- -- -- 2,108
More than ten years to twenty years 6,131 599 -- 59 48 6,837
More than twenty years ............ 15,676 -- 202 -- 254 16,132
-------- -------- -------- -------- -------- --------
Total due after one year ........ 24,117 2,351 315 635 816 28,234
-------- -------- -------- -------- -------- --------
Total amount due ................ $ 32,928 $ 2,577 $ 815 $ 1,684 $ 3,621 41,625
======== ======== ======== ======== ======== ========
Less:
Allowance for loan losses ......... (377)
Deferred loan origination fees, net (73)
--------
Loans, net ............................. $ 41,175
========
EXHIBIT I-11
Revere Federal Savings
Loan Originations, Purchases, and Sales
FOR THE NINE MONTHS
ENDED JUNE 30, FOR THE YEAR ENDED SEPTEMBER 30,
----------------------------------------------------------
1998 1997 1997 1996 1995
---- ---- ---- ---- ----
(In thousands)
Beginning balance, loans, net ........... $ 41,175 $ 33,046 $ 33,046 $ 21,273 $ 20,579
-------- -------- -------- -------- --------
Loans originated:
Mortgage loans:
One- to four-family .............. 11,869 4,521 6,843 18,385 3,402
Commercial real estate ........... 1,000 1,799 2,245 463 --
Construction and land ............ 885 519 1,047 511 718
-------- -------- -------- -------- --------
Total mortgage loans ........... 13,754 6,839 10,135 19,359 4,120
Commercial loans ................... 1,627 1,310 1,946 -- --
Consumer loans ..................... 3,538 1,392 2,329 965 537
-------- -------- -------- -------- --------
Total loans originated ......... 18,919 9,541 14,410 20,324 4,657
-------- -------- -------- -------- --------
Total ................................ 60,094 42,587 47,456 41,597 25,236
Principal repayments and other, net ..... (7,263) (1,461) (3,463) (5,110) (3,385)
Loan charge-offs, net ................... (46) -- (8) (29) 21
Sale of mortgage loans, principal balance (5,960) (2,209) (2,810) (3,412) (599)
-------- -------- -------- -------- --------
Ending balance, loans, net .............. $ 46,825 $ 38,917 $ 41,175 $ 33,046 $ 21,273
======== ======== ======== ======== ========
EXHIBIT I-12
Revere Federal Savings
Non-Performing Assets
AT JUNE 30, AT SEPTEMBER 30,
-------------- ------------------------------------------
1998 1997 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS)
Non-performing loans:
Mortgage loans:
One-to four-family ............. $142 $ -- $ 144 $ 28 $ 125 $ 190 $ 203
Commercial real estate ......... -- -- -- -- -- -- --
Construction and land .......... -- -- -- -- -- -- --
------ ----- ------ -------- ------- ----- -----
Total mortgage loans ......... 142 -- 144 28 125 190 203
------ ----- ------ -------- ------- ----- -----
Commercial loans ................. 124 -- -- -- -- -- --
------ ----- ------ -------- ------- ----- -----
Consumer loans:
Home equity lines .............. -- -- -- -- -- -- --
Security by deposit accounts ... -- -- -- -- -- -- --
Auto loans ..................... -- -- -- -- -- -- --
Other consumer loans ........... 3 -- 13 -- -- -- 1
------ ----- ------ -------- ------- ----- -----
Total consumer loans ......... 3 -- 13 -- -- -- 1
------ ----- ------ -------- ------- ----- -----
Total non-performing loans(1) 269 -- 157 28 125 190 204
Other real estate owned, net ......... -- -- -- -- -- 108 128
------ ----- ------ -------- ------- ----- -----
Total non-performing assets(2) $ 269 $ -- $ 157 $ 28 $ 125 $ 298 $ 332
====== ===== ====== ======== ======= ===== =====
Allowance for loan losses
as a percent of loans(3) ......... 1.07% 0.94% 0.91% 0.97% 0.96% 0.90% 0.30%
====== ===== ====== ======== ======= ===== =====
Allowance for loan losses as a percent
of non-performing loans(4) ....... 188.12% N/A 240.03% 1,159.67% 164.86% 98.33% 32.76%
====== ====== ======== ======= ===== =====
Non-performing loans as a percent
of loans(3)(4) ................... 0.57% 0.00% 0.38% 0.08% 0.58% 0.91% 0.92%
====== ==== ====== ======== ======= ===== ====
Non-performing assets as a percent
of total assets(2) ............... 0.30% 0.00% 0.18% 0.04% 0.18% 0.50% 0.65%
====== ==== ====== ======== ======= ===== =====
- -------------
(1) Non-performing loans at June 30, 1998 includes non-accrual loans of
$145,000 and loans past due 90 days or more and still accruing of $124,000.
For all other periods presented, the non-performing loans consisted
entirely of non-accrual loans.
(2) Non-performing assets consist of non-performing loans and other real estate
owned.
(3) Loans are presented before allowance for loan losses and deferred loan
origination fees, net.
(4) Non-performing loans consist of all loans 90 days or more past due and
other loans which have been identified by the Bank as presenting
uncertainty with respect to the collectibility of interest or principal.
EXHIBIT I-13
Revere Federal Savings
Classified Assets
Federal regulations require each banking institution to classify its asset
quality on a regular basis. In addition, in connection with examinations of such
banking institutions, federal examiners have authority to identify problem
assets and, if appropriate, classify them. An asset is classified substandard if
it is determined to be inadequately protected by the current net worth and
paying capacity of the obligor or of the collateral pledged, if any. As a
general rule, the Bank will classify a loan as substandard if the Bank can no
longer rely on the borrower's income as the primary source for repayment of the
indebtedness and must look to secondary sources such as guarantors or
collateral. An asset is classified as doubtful if full collection is highly
questionable or improbable. An asset is classified as loss if it is considered
uncollectible, even if a partial recovery could be expected in the future. The
regulations also provide for a special mention designation, described as assets
which do not currently expose a banking institution to a sufficient degree of
risk to warrant classification but do possess credit deficiencies or potential
weaknesses deserving management's close attention. Assets classified as
substandard or doubtful require a banking institution to establish general
allowances for loan losses. If an asset or portion thereof is classified as a
loss, a banking institution must either establish specific allowances for loan
losses in the amount of the portion of the asset classified as a loss, or charge
off such amount. Examiners may disagree with a banking institution's
classifications and amounts reserved. If a banking institution does not agree
with an examiner's classification of an asset, it may appeal this determination
to the Regional Director of the OTS. At June 30, 1998, the Bank had $38,000 in
assets classified as special mention, doubtful or loss, and $144,000 in assets
designated as substandard.
EXHIBIT I-14
Revere Federal Savings
Deposit Composition
AT SEPTEMBER 30,
-----------------------------------------------------------------------------------------------
AT JUNE 30, 1998 1997 1996
----------------------------- --------------------------- ---------------------------------
PERCENT OF PERCENT OF PERCENT OF
TOTAL WEIGHTED TOTAL WEIGHTED TOTAL WEIGHTED
AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE
AMOUNT DEPOSITS RATE AMOUNT DEPOSITS RATE AMOUNT DEPOSITS RATE
------------------------------------------------------------------------------------------------
DOLLARS IN THOUSANDS)
Demand deposits................. $2,441 4.17% ---% $ 1,219 2.23% ---% $ 914 1.88% ---%
Now accounts.................... 4,191 7.15 1.05 3,443 6.55 1.02 2,041 4.19 1.13
Regular savings accounts........ 15,018 25.63 1.26 14,548 27.67 1.11 14,743 30.29 1.06
Money market accounts........... 1,555 2.65 3.10 739 1.40 3.11 212 0.44 2.83
------ ----- -------- ------- ------- ------
Total..................... 23,205 39.6 1.22 19,949 37.94 1.17 17,910 36.80 1.09
------ ----- -------- ------- ------- ------
Time deposits:(1)
6 months or less............ 3,973 6.78 4.98 3,612 6.87 4.73 4,561 9.37 4.91
Over 6 months through 12 months 13,759 23.48 5.30 12,026 22.87 5.20 12,569 25.82 5.66
Over 12 through 36 months... 15,713 26.81 5.91 15,168 28.84 6.09 11,934 24.52 6.15
Over 36 months.............. 1,952 3.33 6.64 1,828 3.48 6.67 1,699 3.49 6.66
------ ----- -------- ------- ------- ------
Total time deposits....... 35,397 60.40 5.61 32,634 62.06 5.64 30,763 63.20 5.79
------ ----- -------- ------- ------- ------
Total average deposits.... $58,602 100.00% 3.87% $52,583 100.00% 4.02% $48,673 100.00% 4.11%
====== ====== ======== ======= ======= =======
-----------------------------
AT SEPTEMBER 30, 1995
-----------------------------
PERCENT OF
TOTAL WEIGHTED
AVERAGE AVERAGE AVERAGE
AMOUNT DEPOSITS RATE
------------------------------
Demand deposits................. $ 586 1.32% ---%
Now accounts.................... 1,707 3.85 1.64
Regular savings accounts........ 15,436 34.78 1.49
Money market accounts........... 6 0.01 3.30
--- ------
Total..................... 17,735 39.96 1.50
-------- -------
Time deposits:(1)
6 months or less............ 5,639 12.70 4.79
Over 6 months through 12 months 10,333 23.28 5.22
Over 12 through 36 months... 9,483 21.37 5.66
Over 36 months.............. 1,205 2.69 6.71
------- ------
Total time deposits....... 26,660 60.04 5.35
-------- -------
Total average deposits.... $ 44,395 100.00% 3.84%
======== ======
- --------------
(1) Based on remaining maturity of deposits.
EXHIBIT II-1
Revere Federal Savings
List of Office Location
YEAR COMPLETED SQUARE FOOTAGE BOOK VALUE
---------------------------------------------------------------
Main Office: 310 Broadway
Revere, MA 1977 3,500 $449,000
EXHIBIT II-2
HISTORICAL INTEREST RATES(1)
Prime 90 Day One Year 30 Year
Year/Qtr. Ended Rate T-Bill T-Bill T-Bond
--------------- ---- ------- ------- -------
1991: Quarter 1 8.75% 5.92% 6.24% 8.26%
Quarter 2 8.50% 5.72% 6.35% 8.43%
Quarter 3 8.00% 5.22% 5.38% 7.80%
Quarter 4 6.50% 3.95% 4.10% 7.47%
1992: Quarter 1 6.50% 4.15% 4.53% 7.97%
Quarter 2 6.50% 3.65% 4.06% 7.79%
Quarter 3 6.00% 2.75% 3.06% 7.38%
Quarter 4 6.00% 3.15% 3.59% 7.40%
1993: Quarter 1 6.00% 2.95% 3.18% 6.93%
Quarter 2 6.00% 3.09% 3.45% 6.67%
Quarter 3 6.00% 2.97% 3.36% 6.03%
Quarter 4 6.00% 3.06% 3.59% 6.34%
1994: Quarter 1 6.25% 3.56% 4.44% 7.09%
Quarter 2 7.25% 4.22% 5.49% 7.61%
Quarter 3 7.75% 4.79% 5.94% 7.82%
Quarter 4 8.50% 5.71% 7.21% 7.88%
1995: Quarter 1 9.00% 5.86% 6.47% 7.43%
Quarter 2 9.00% 5.57% 5.63% 6.63%
Quarter 3 8.75% 5.42% 5.68% 6.51%
Quarter 4 8.50% 5.09% 5.14% 5.96%
1996: Quarter 1 8.25% 5.14% 5.38% 6.67%
Quarter 2 8.25% 5.16% 5.68% 6.87%
Quarter 3 8.25% 5.03% 5.69% 6.92%
Quarter 4 8.25% 5.18% 5.49% 6.64%
1997: Quarter 1 8.50% 5.32% 6.00% 7.10%
Quarter 2 8.50% 5.17% 5.66% 6.78%
Quarter 3 8.50% 5.10% 5.44% 6.40%
Quarter 4 8.50% 5.34% 5.48% 5.92%
1998: Quarter 1 8.50% 5.12% 5.39% 5.93%
Quarter 2 8.50% 4.99% 5.37% 5.63%
August 21, 1998 8.50% 4.98% 5.19% 5.43%
(1) End of period data.
Source: SNL Securities.
EXHIBIT II-3
Demographic/Economic Reports
ZIP CODE DEMOGRAPHIC REPORT
ZIP Code 02151
Post Office Name REVERE
MA
Population
- ----------
1980 42,423
1990 42,786
1998 38,874
2003 38,198
Population Growth Rate -1.2
Households
- ----------
1990 17,438
1998 16,035
2OO3 15,926
Household Growth Rate -1
Average Household Size 2.4
Families
- --------
1990 11,151
1998 9,923
Family Growth Rate -1.4
Race 1990 1998
- ---- ---- ----
% White 93.2 89.2
% Black 1.4 2.5
% Asian
/Pacific Isl. 3.7 5.5
% Hispanic* 3.8 5.8
1998 Age Distribution
- ---------------------
0-4 6.2
5-9 6.2
10-14 4.9
15-19 4.6
20-24 5.7
25-44 32.9
45--64 22.8
65-84 14.8
85+ 1.8
18+ 80.1
Median Age
- ----------
1990 36.1
1998 38.2
Male/Female Ratio 94.6
Per Capita Income $17,995
1998 Household Income*
- ----------------------
BASE 16,035
% greater than $15K 21.5
% $15K-25K 13
% $25K-50K 32.3
% $50K-100K 27.5
% $100K-150K 4.8
% >$150K 0.9
Median Household Income
- -----------------------
1998 $36,O57
2003 $38,218
1998 Average Disposable Income
- ------------------------------
Total $30,814
Householder greater than 35 $31,152
Householder 35-44 $34,O82
Householder 45-54 $37,484
Householder 55-64 $38,094
Householder 65+ $19,518
Spending Potential Index*
- -------------------------
Auto Loan 98
Home Loan 99
Investments 112
Retirement Plans 96
Home Repair 101
Lawn & Garden 98
Remodeling 87
Appliances 97
Electronics 92
Furniture 102
Restaurants 99
Sporting Goods 97
Theater/Concerts 102
Toys 8, Hobbies 99
Travel 110
Video Rental 98
Apparel 100
Auto Aftermarket 97
Health Insurance 102
Pets & Supplies 98
- --------------------------------------------------------------------------------
* Persons of Hispanic Origin may be of any race.
* Income represents the annual income for the preceding year in current
dollars, including an adjustment for inflation or cost-of-living increase.
* The Spending Potential Index (SPI) is calculated by CACI from the Consumer
Expenditure Survey, Bureau of Labor Statistics. The index represents the
ratio of the average amount spent locally to the average U.S. spending for a
product or service, multiplied by 100.
- --------------------------------------------------------------------------------
STATE DEMOGRAPHIC REPORT
STATE 25
STATE NAME MASSACHUSETTS
Population
- ----------
1980 5,737,093
1990 6,016,425
1998 6,148,792
2003 6,235,143
Population Growth Rate 0.3
Households
- ----------
1990 2,247,110
1998 2,368,215
2003 2,448,273
Household Growth Rate 0.6
Average Household Size 2.5
Families
- --------
1990 1,514,746
1998 1,561,172
Family Growth Rate 0.4
Race 1990 1998
- ---- ---- ----
% White 89.8 87.2
% Black 5 5.8
% Asian
/Pacific Isl. 2.4 3.5
% Hispanic* 4.8 6.1
1998 Age Distribution
- ---------------------
04 6.3
5-9 7
10-14 6.3
15-19 6.1
2O-24 6
2544 33.2
45-~4 21
65-84 12.3
85+ 1.8
18+ 77.3
Median Age
- ----------
1990 33.6
1998 36.1
Male/Female Ratio 93.4
Per Capita Income $19,978
1998 Household Income*
- ----------------------
BASE 2,368,150
% less than $15K 16.9
% $15K-25K 11.6
% $25K-50K 31.4
% $50K-100K 31
% $100K-150K 6.4
% greater than $150K 2.8
Median Household Income
- -----------------------
1998 $41,488
2003 $44,507
1998 Averaqe Disposable Income
- ------------------------------
Total $36,042
Householder greater than 35 $32,669
Householder 35-44 $40,847
Householder 45-54 $47,65O
Householder 55-64 $42,582
Householder 65+ $20,898
SPENDING POTENTIAL INDEX*
Auto Loan 102
Home Loan 109
Investments 111
Retirement Plans 109
Home Repair 99
Lawn & Garden 100
Remodeling 93
Appliances 100
Electronics 101
Furniture 107
RESTAURANTS 107
Sporting Goods 104
Theater/Concerts 108
Toys & Hobbies 104
Travel 113
Video Rental 100
Apparel 110
Auto Aftermarket 104
Health Insurance 102
Pets & Supplies 103
- --------------------------------------------------------------------------------
* Persons of Hispanic Origin may be of any race.
* Income represents the annual income for the preceding year in current
dollars, including an adjustment for inflation or cost-of-living increase.
* The Spending Potential Index (SPI) is calculated by CACI from the Consumer
Expenditure Survey, Bureau of Labor Statistics. The index represents the
ratio of the average amount spent locally to the average U.S. spending for
a product or service, multiplied by 100.
- --------------------------------------------------------------------------------
MSA DEMOGRAPHIC REPORT
MSA 1123
MSA NAME BOSTON-WOR-LAW-LW-BR
Population
- ----------
1980 5,336,242
1990 5,685,998
1998 5,864,713
2003 5,980,698
Population Growth Rate 0.4
Households
- ----------
1990 2,111,440
1998 2,244,336
2003 2,332,087
Household Growth Rate 0.7
Average Household Size 2.53
Families
- --------
1990 1,432,816
1998 1,491,759
Family Growth Rate 0.5
Race 1990 1998
- ---- ---- ----
% White 90.6 88.2
% Black 4.6 5.3
% Asian
/Pacific Isl. 2.5 3.6
% Hispanic* 4.3 5.5
1998 Age Distribution
- ---------------------
O-4 6.3
5-9 7.1
10-14 6.4
15-19 6
20-24 6
25-44 34
45-64 20.9
65-84 11.5
85+ 1.7
18+ 77
Median Age
- ----------
1990 33.2
1998 35.7
MALE/FEMALE RATIO 94.1
Per Capita Income $20,424
1998 Household Income*
- ----------------------
Base 2,244,287
% less than $15K 15.7
% $15K-25K 11
% $25K-50K 31.3
% $50K-100K 32.3
% $100K-150K 6.7
% greater than $150K 2.9
Median Household Income
- -----------------------
1998 $43,024
2O03 $46,111
1998 Average Disposable Income
Total $37,415
Householder less than 35 $34,033
Householder 35-44 $42,O93
Householder 45-54 $48,897
Householder 55-64 $43,604
Householder 65+ $21,305
Spending Potential Index*
- -------------------------
Auto Loan 103
Home Loan 111
Investments 110
Retirement Plans 110
Home Repair 99
Lawn & Garden 100
Remodeling 93
Appliances 100
Electronics 102
Furniture 108
Restaurants 108
Sporting Goods 105
Theater/Concerts 108
Toys & Hobbies 105
Travel 113
Video Rental 101
Apparel 111
Auto Aftermarket 105
Health Insurance 102
Pets & Supplies 104
- --------------------------------------------------------------------------------
* Persons of Hispanic Origin may be of any race.
* Income represents the annual income for the preceding year in current
dollars, including an adjustmen! for inflation or cost-of-living increase.
* The Spending Potential Index (SPI) is calculated by CACl from the Consumer
Expenditure Survey, Bureau of Labor Statistics. The index represents the
ratio of the average amount spent locally to the average U.S. spending for
a product or service, multiplied by 100.
- --------------------------------------------------------------------------------
COUNTY DEMOGRAPHIC REPORT
STATE/COUNTY 25025
COUNTY NAME SUFFOLK MA
Population
- ----------
1980 650,142
1990 663,906
1998 642,698
2003 636,805
1998 Average Disposable Income
- -------------------------------
Total $31,497
Householder less than 35 $30,347 Population Growth Rate -0.4
Householder 35-44 $35,255 Households
Householder 45-54 $38,900 ----------
Householder 55-64 $36,481
Householder 65+ $19,884
1990 264,061
1998 258,813
2003 259,175
Household Growth Rate -0.2
Average Household Size 2.34
Families
- --------
1990 138,177
1998 131,534
Family Growth Rate -0.6
1998 Age Distribution
- ---------------------
0-4 6.4
5-9 6.2
10-14 5.1
15-19 6.5
20-24 9.1
25-44 37.1
45-64 17.5
65-84 10.5
85+ 1.6
18+ 79.8
Median Age
- ----------
1990 30.8
1998 32.8
Male Female Ratio 93.5
Per Capita Income $18,345
Race 1990 1998
- ---- ---- ----
% White 66.1 59.2
% Black 22.5 26
% Asian
/Pacific Isl. 5 7
% Hispanic* 11 13.5
1998 Household Income*
- ----------------------
Base 258,796
% less than $15K 23.1
% $15K-25K 13.7
% $25K-50K 31
% $501'(-100K 25.1
% $100K-150K 5
% greater than $150K 2.1
Median Household Income
- -----------------------
1998 $34,301
2003 $36,377
Spending Potential Index*
- -------------------------
Auto Loan 97
Home Loan 106
Investments 106
Retirement Plans 98
Home Repair 98
Lawn & Garden 94
Remodeling 86
Appliances 95
Electronics 94
Furniture 102
Restaurants 97
Sporting Goods 97
Theater/Concerts 99
Toys & Hobbies 95
Travel 110
Video Rental 99
Apparel 102
Auto Aftermarket 99
Health Insurance 96
Pets & Supplies 99
- --------------------------------------------------------------------------------
* Persons of Hispanic Origin may be of any race.
* Income represents the annual income for the preceding year in current
dollars, including an adjustmen! for inflation or cost-of-living increase.
* The Spending Potential Index (SPI) is calculated by CACI from the Consumer
Expenditure Survey, Bureau of Labor Statistics. The index represents the
ratio of the average amount spent locally to the average U.S. spending for
a product or service, multiplied by 100.
- --------------------------------------------------------------------------------
EXHIBIT II-4
Sources of Personal Income/Employment Sectors
PERSONAL INCOME BY MAJOR SOURCE AND EARNINGS BY INDUSTRY 1/
for States and counties
(thousands of dollars}
Massachusetts [25.000]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Income by place of residence
Personal income (thousands of dollars} 141,629,206 147,305,222 152,471,825 159,030,895 170,038,696
Nonfarm personal income 141,454,043 147,120,444 152,276,042 158,877,284 169,884,249
Farm income 2/ 175,163 184,778 195,783 153,611 154,447
Population (number of personsl 3/ 5,999,263 5,997,894 6,017,414 6,042,073 6,071,078
Per capita personal income (dollars} 23,608 24,559 25,358 26,321 28,008
Derivation of personal income
Earnings by place of work 100,727,163 106,734,364 110,888,890 116,250,016 123,970,025
Less: Personal cont. for social insurance 6,400,017 6,620,513 6,925,135 7,397,375 7,889,677
Plus: Adjustment for residence 5/ -2,179,658 -2,299,613 -2,477,547 -2,680,861 -2,875,250
Equals: Net earnings by place of residence 92,147,488 97,804,238 101,486,208 106,171,780 113,205,098
Plus: Dividends, interest, and rent 6/ 26,884,324 25,868,271 26,648,979 27,713,176 30,001,069
Plus: Transfer payments 22,597,394 23,632,713 24,336,638 25,145,939 26,832,529
Earnings by place of work
Components of earnings
Wage and salary disbursements 82,398,849 86,122,657 89,222,306 93,383,223 99,575,276
Other labor income 9,573,306 10,279,783 10,983,133 11,466,265 12,099,852
Proprietors' income 7/ 8,755,008 10,331,924 10,683,451 11,400,528 12,294,897
Farm proprietors' income 96,728 109,025 112,860 72,154 63,298
Nonfarmproprietors' income 8,658,280 10,222,899 10,570,591 11,328,374 12,231,599
Earnings by industry
Farm earnings 175,163 184,778 195,783 153,611 154,447
Nonfarm earnings 1 00,552,000 106,549,586 110,693,107 116,096,405 123,815,578
Private earnings 87,940,986 93,747,352 97,222,028 102,018,769 109,227,603
Ag. serv., forestry, fishing, and other 571,826 571,802 553,630 570,903 614,113
Agricultural serzioes 386,252 411,334 423,746 458,278 492,153
Forestry, fishing, and other 8/ 185,574 160,468 129,884 112,625 121,960
Forestry 1,993 1,936 631 785 811
Fishing 183,581 158,532 129,253 111,840 121,149
Other 8/ 0 0 0 0 0
Mining 65,961 75,302 77,810 84,475 84,209
Metal mining 121 (L) (L) (L) (D)
Coal mining 16,663 23,529 24,682 23,361 24,753
Oil and gas extraction 2,251 2,800 3,113 3,840 (D)
Nonmetallic minerals, except fuels 46,926 48,950 50,037 57,313 55,411
Construction 4,307,686 4,391,857 4,747,072 5,355,064 5,524,823
General building contractors 1,069,645 974,039 1,023,667 1,180,302 1,215,057
Heavy construction contractors 360,083 434,718 497,790 564,066 631,080
Special trade contractors 2,877,958 2,983,100 3,225,615 3,610,696 3,678,686
Manufacturing 20,309,944 20,788,059 20,692,414 21,128,400 22,012,191
Durable goods 14,311,258 14,495,534 14,199,631 14,292,553 14,912,366
Lumber and wood products 116,506 123,591 127,826 135,696 154,327
Furniture and fixtures 127,012 142,679 149,699 159,101 155,438
Stone, clay, and glass products 316,969 352,906 349,506 366,218 393,419
Primary metal industries 375,407 375,473 366,624 393,730 410,113
Fabricated metal products 1,617,315 1,635,988 1,654,202 1,730,676 1,888,293
Industrial machinery and equipment 3,732,297 3,904,549 3,734,857 3,601,403 3,665,211
Electronic and other electric equipment 3,024,432 3,022,856 2,873,673 3,003,508 3,271,200
Motor vehicles and equipment 31,627 50,458 51,841 59,788 56,930
Other transportation equipment 1,315,520 1,265,121 1,215,190 1,101,404 1,102,742
Instruments and related products 3,111,607 3,064,044 3,083,216 3,122,109 3,181,195
Miscellaneous manufacturing industries 542,566 557,869 592,997 618,920 633,498
Ordnance 9/ (N) (N) {N) (N) (N)
Nondurable goods 5,998,686 6,292,525 6,492,783 6,835,847 7,099,825
Food and kindred products 669,477 702,677 728,247 746,799 774,622
Tobacco products 268 325 404 356 371
Textile mill products 467,669 519,123 529,701 564,581 574,210
Apparel and other textile products 375,432 397,302 392,664 388,551 377,628
Paper and allied products 776,646 809,942 814,837 840,833 864,523
Printing and publishing 1,850,230 1,867,203 1,914,662 2,038,351 2,168,880
Chemicals and allied products 871,878 947,840 932,319 1,029,352 1,024,103
Petroleum and coal products 79,179 98,195 107,348 106,912 112,964
Rubber and misc. plastics products 739,465 791,733 912,418 959,411 1,058,035
Leather and leather products 168,442 158,185 160,183 160,701 144,489
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA05.2 August 1997 BUREAU OF ECONOMIC ANALYSIS
PERSONAL INCOME BY MAJOR SOURCE AND EARNINGS BY INDUSTRY 1/
for States and counties
{thousands of dollars)
Massachusetts [25.000]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Transportation and public utilities 5,428,458 5,764,903 6,128,798 6,386,994 6,625,136
Railroad transportation 117,801 134,868 133,117 139,929 154,460
Trucking and warehousing 965,509 1,019,076 1,089,315 1,175,504 1,239,955
Water transportation 117,411 101,041 88,872 (D) (D)
Other transportation 1,205,694 1,306,274 1,364,825 (D) (D)
Local and interurban passenger transit 343,352 364,312 386,704 432,082 479,879
Transportation by air 535,930 587,165 589,833 581,778 567,272
Pipelines, except natural gas 670 704 788 (D) (D)
Transportation services 325,742 354,093 387,500 402,262 428,328
Communications 1,550,623 1,619,569 1,649,524 1,694,833 1,748,348
Electric, gas, and sanitary services 1,471,420 1,584,075 1,803,145 1,864,425 1,912,592
Wholesale trade 6,804,647 7,155,008 7,198,759 7,668,132 8,385,550
Retail trade 9,100,029 9,432,250 9,634,069 10,100,229 10,645,861
Building materials and garden equipment 458,689 455,107 433,715 492,302 519,461
General merchandise stores 831,545 893,663 915,842 853,682 912,020
Food stores 1,570,371 1,581,754 1,570,067 1,624,587 1,702,810
Automotive dealers and service stations 1,101,308 1,124,797 1,193,914 1,298,585 1,346,339
Apparel and accessory stores 687,460 711,573 733,136 740,591 744,500
Home furniture and furnishings stores 501,152 492,177 497,179 558,749 597,564
Eating and drinking places 2,167,759 2,287,569 2,391,658 2,511,825 2,672,491
Miscellaneous retail 1,781,745 1,885,610 1,898,558 2,019,908 2,150,676
Finance, insurance, and real estate 8,196,578 9,290,694 9,964,861 10,599,412 11,580,579
Depository & non-depository institutions 2,338,232 2,555,793 2,705,567 2,860,537 3,000,814
Other finance, insurance, & real estate 5,858,346 6,734,901 7,259,294 7,738,875 8,579,765
Security & commodity brokers & services 1,686,989 2,156,643 2,495,121 2,697,290 3,254,431
Insurance carriers 2,154,174 2,286,941 2,324,957 2,460,969 2,532,439
Insurance agents, brokers, and services 1,066,155 1,054,565 1,099,098 1,185,001 1,255,882
Real estate 714,003 960,378 1,156,996 1,227,755 1,318,253
Combined real estate, insurance, etc. 10/ (N) (N) (N) (N) (N)
Holding and other investment companies 237,025 276,374 183,122 167,860 218,760
Services 33,155,857 36,277,477 38,224,615 40,125,160 43,755,141
Hotels and other lodging places 713,187 772,598 786,705 812,346 859,203
Personal services 848,850 925,215 1,018,512 1,059,131 1,088,364
Private households 167,257 183,159 192,293 194,508 208,068
Business services 5,577,890 6,284,041 6,638,527 7,328,604 8,733,992
Auto repair, services, and parking 659,255 685,406 753,056 819,211 878,745
Miscellaneous repair services 328,189 361,206 397,646 338,151 378,506
Amusement and recreation services 670,039 827,691 803,618 853,440 899,369
Motion pictures 208,016 225,460 237,880 224,477 251,772
Health services 10,367,997 11,435,092 12,060,623 12,638,174 13,309,984
Legal services 2,528,048 2,672,360 2,759,801 2,810,237 2,914,776
Educational services 3,407,297 3,524,762 3,688,124 3,812,707 4,033,732
Social services 11/ 1,206,164 1,314,507 1,448,595 1,542,064 1,655,610
Museums, botanical, zoological gardens 79,573 82,767 87,154 91,995 87,474
Membership organizations 763,567 720,819 767,184 802,332 852,048
Engineering and management services 12/ 5,230,269 5,798,740 6,127,791 6,271,065 6,998,702
Miscellaneous services 400,259 463,654 457,106 546,720 604,796
Government and government enterprises 12,611,014 12,802,234 13,471,079 14,077,636 14,587,975
Federal, civilian 2,238,477 2,261,257 2,524,004 2,580,728 2,628,894
Military 507,974 512,976 473,162 421,908 396,981
State and local 9,864,563 10,028,001 10,473,913 11,074,990 11,562,100
State 3,403,211 3,406,301 3,662,803 3,897,406 3,974,027
Local 6,461,352 6,621,700 6,811,110 7,177,584 7,588,073
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA05.2 August 1997 BUREAU OF ECONOMIC ANALYSIS
PERSONAL INCOME BY MAJOR SOURCE AND EARNINGS BY INDUSTRY 1/
for States and counties
(thousands of dollars)
Suffolk, Massachusetts [25.025]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Income by place of residence
Personal income (thousands of dollars) 16,528,594 17,045,610 17,724,049 18,535,162 19,890,786
Nonfarm personal income 16,528,594 17,045,610 17,724,049 18,535,162 19,890,786
Farm income 2/ 0 0 0 0 0
Population (number of persons) 3/ 649,263 640,005 639,522 639,017 647,570
Per capita personal income (dollars) 25,457 26,634 27,715 29,006 30,716
Derivation of personal income
Earnings by place of work 22,458,213 24,256,460 25,435,257 26,680,532 28,747,720
Less: Personal cont. for social insurance 1,391,427 1,469,133 1,543,395 1,642,715 1,765,841
Plus: Adjustment for residence 5/ -10,736,096 -11,716,703 -12,447,441 -13,047,725 -14,162,009
Equals: Net earnings by place of residence 10,330,690 11,070,624 11,444,421 11,990,092 12,819,870
Plus: Dividends, interest, and rent 6/ 2,966,365 2,734,284 2,935,011 3,085,868 3,349,966
Plus: Transfer payments 3,231,539 3,240,702 3,344,617 3,459,202 3,720,950
Earnings by place of work
Components of earnings
Wage and salary disbursements 18,760,490 20,037,164 20,962,645 21,871,230 23,569,174
Other labor income 2,015,479 2,202,185 2,377,394 2,499,352 2,669,266
Proprietors' income 7/ 1,682,244 2,017,111 2,095,218 2,309,950 2,509,280
Farm proprietors' income 0 0 0 0 0
Nonfarm proprietors' income 1,682,244 2,017,111 2,095,218 2,309,950 2,509,280
Earnings by industry
Farm earnings 0 0 0 0 0
Nonfarm earnings 22,458,213 24,256,460 25,435,257 26,680,552 28,747,720
Private earnings 19,009,658 20,811,602 21,790,050 22,822,422 24,742,021
Ag. serv., forestry, fishing, and other 32,020 30,232 30,523 31,882 26,832
Agricultural services 25,165 25,480 26,344 27,961 22,991
Forestry, fishing, and other 8/ 6,855 4,752 4,179 3,921 3,841
Forestry 357 398 (L) (L) (L)
Fishing 6,498 4,354 4,185 3,917 3,833
Other 8/ 0 0 0 0 0
Mining 2,825 4,435 4,988 4,838 5,124
Metal mining 0 0 0 0 0
Coal mining 2,637 4,143 4,641 4,393 4,654
Oil and gas extraction 152 280 338 438 462
Nonmetallic minerals, except fuels (L) (L) (L) (L) (L)
Construction 509,979 552,320 610,481 703,899 785,651
General building contractors 164,685 162,240 177,622 203,122 217,751
Heavy construction contractors 31,435 72,255 85,419 106,175 171,950
Special trade contractors 313,859 317,825 347,440 394,602 395,950
Manufacturing 1,320,134 1,316,818 1,397,150 1,493,549 1,606,525
Durable goods 612,590 591,970 623,793 676,113 732,563
Lumber and wood products (D) 4,062 4,223 4,960 3,551
Furniture and fixtures 8,636 12,666 13,690 13,136 7,716
Stone, clay, and glass products 11,242 12,603 14,516 14,787 20,375
Primary metal industries 20,150 20,558 21,373 20,822 5,933
Fabricated metal products 277,222 273,928 288,595 335,003 384,857
Industrial machinery and equipment 52,354 46,274 43,573 47,292 43,123
Electronic and other electric equipment 105,370 78,431 76,190 75,534 82,878
Motor vehicles and equipment 0 (D) (D) (D] 129
Other transportation equipment (D) (D) (D} (D) 1,822
Instruments and related products 99,813 109,499 122,147 124,974 147,038
Miscellaneous manufacturing industries 24,234 24,493 30,534 31,717 35,141
Ordnance 9/ (N) (N) (N) (N) (N)
Nondurable goods 707,544 724,848 773,357 817,436 873,962
Food and kindred products 76,338 81,739 90,468 92,587 98,612
Tobacco products 0 0 0 0 0
Textile mill products 5,929 6,210 6,639 7,909 8,217
Apparel and other textile products 83,634 84,192 84,129 83,066 81,251
Paper and allied products (D) (D) (D) (D) (D)
Printing and publishing 456,193 435,510 467,950 496,360 517,447
Chemicals and allied products 49,243 63,894 72,105 83,704 105,602
Petroleum and coal products (D) (D) (D) (O) (D)
Rubber and misc. plastics products 12,399 27,222 31,719 33,242 40,021
Leather and leather products 5,104 1,842 2,438 2,201 2,329
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA05.2 August 1997 BUREAU OF ECONOMIC ANALYSIS
PERSONAL INCOME BY MAJOR SOURCE AND EARNINGS BY INDUSTRY 1/
for States and counties
(thousands of dollars)
Suffolk, Massachusetts [25.025]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Transportation and public utilities 1,690,276 1,901,507 1,958,904 2,036,948 2,099,313
Railroad transportation 48,183 54,940 54,462 57,547 63,523
Trucking and warehousing 107,949 123,469 129,875 142,178 156,587
Water transportation 29,580 28,763 31,325 35,224 32,386
Other transportation 670,228 740,208 740,026 731,753 747,700
Local and interurban passenger transit 66,590 76,266 75,993 86,500 109,836
Transportation by air 466,989 507,036 500,806 478,179 462,078
Pipelines, except natural gas 0 0 0 0 0
Transportation services 126,649 156,906 163,227 167,074 175,786
Communications 527,469 596,565 576,710 569,562 571,561
Electric, gas, and sanitary services 306,867 357,562 426,506 500,684 527,556
Wholesale trade 793,063 815,848 809,835 798,421 925,469
Retail trade 1,156,970 1,193,755 1,185,599 1,223,715 1,249,228
Building materials and garden equipment 27,323 23,548 19,024 22,790 23,655
General merchandise stores 97,123 101,562 96,354 86,231 76,798
Food stores 200,214 205,607 193,707 184,765 168,861
Automotive dealers and service stations 66,899 65,377 62,522 65,392 63,533
Apparel and accessory stores 89,157 94,324 105,480 104,499 106,111
Home furniture and furnishings stores 44,515 39,313 37,170 42,657 45,353
Eating and drinking places 412,067 430,644 456,005 495,514 539,931
Miscellaneous retail 219,672 233,380 215,337 221,867 224,986
Finance, insurance, and real estate 4,103,777 4,667,128 5,039,480 5,381,692 6,115,025
Depository & non-depository institutions 847,221 932,490 975,430 1,074,269 1,221,899
Other finance, insurance, & real estate 3,256,556 3,734,638 4,064,050 4,307,423 4,893,126
Security & commodity brokers & services 1,479,016 1,904,984 2,179,478 2,329,691 2,867,815
Insurance carriers 956,302 940,835 957,196 1,005,429 1,026,521
Insurance agents, brokers, and services 254,993 265,665 255,790 279,764 271,612
Real estate 388,970 413,483 463,281 500,535 510,571
Combined real estate, insurance, etc. 10/ (N) (N) (N) (N) (N)
Holding and other investment companies 177,275 209,671 208,305 192,004 216,607
Services 9,400,614 10,329,559 10,753,090 11,147,478 11,928,854
Hotels and other lodging places 300,496 338,061 332,352 343,464 366,054
Personal services 116,322 124,731 140,215 141,251 149,717
Private households 25,669 28,112 29,517 29,858 31,941
Business services 1,063,939 1,162,999 1,213,405 1,385,062 1,577,103
Auto repair, services, and parking 125,450 127,155 128,019 129,923 141,907
Miscellaneous repair services 22,152 22,503 26,314 23,896 24,674
Amusement and recreation services 243,439 309,667 295,952 295,310 317,132
Motion pictures 54,636 58,434 60,944 56,973 63,358
Health services 2,858,457 3,270,296 3,421,870 3,476,533 3,582,597
Legal services 1,502,890 1,561,861 1,634,473 1,666,865 1,741,561
Educational services 914,103 944,067 987,409 1,044,705 1,105,948
Social services 11/ 298,894 335,508 365,307 360,121 376,073
Museums, botanical, zoological gardens 45,388 46,639 49,946 55,324 46,007
Membership organizations 199,692 178,269 181,468 181,642 201,876
Engineering and management services 12/ 1,551,060 1,735,262 1,808,324 1,817,342 2,049,873
Miscellaneous services 78,007 85,995 77,575 139,209 153,033
Government and government enterprises 3,448,555 3,444,858 3,645,207 3,858,110 4,005,699
Federal, civilian 751,850 750,714 850,364 885,864 906,737
Military 66,431 60,575 60,173 58,928 58,588
State and local 2,630,274 2,633,569 2,734,670 2,913,318 3,040,374
State 1,576,569 1,575,235 1,738,368 1,893,979 1,969,121
Local 1,053,705 1,058,334 996,302 1,019,339 1,071,253
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA05.2 August 1997 BUREAU OF ECONOMIC ANALYSIS
Footnotes for table CA05
Personal Income by major source and Earnings by Industry
1/ 1969-74 based on 1967 SIC. 1975-87 based on 1972 SIC. 1988-95 based on 1987
SIC.
2/ Farm income consists of proprietors' net income; the cash wages,
pay-in-kind, and other labor income of hired farm workers; end the salaries
of officers of corporate farms.
3/ Census Bureau midyear population estimates. Estimates for 1990-95 reflect
county population estimates available as of March 1997. The population
estimates for the United States, Utah, and Cache, UT, 1991-94, have been
adjusted by BEA for consistency with a special, upward adjustment made by
the Census Bureau to its 1995 estimate for Cache County. Additionally, as a
result of special and test censuses conducted in 1995, the Census Bureau
reduced substantially the 1995 population estimates for Yuma, AZ; DeSoto,
I.A; Dorchester, SC; and Montgomery, TN, but made no adjustments to the
estimates for the other years. For these counties, BEA was unable to make
adjustments to the population estimates in time for this release, and the
estimates of per capita personal income are discontinuous between 1994 and
1995. BEA's further adjustments to the population estimates for 1991-94
will be reflected in the release of State per capita personal income on
SeptemDer 19, 1997 and in the release of local area per capita personal
income in the Spring of 1998.
4/ Personal contributions for social insurance are included in earnings by
type and industry but excluded from personal income.
5/ The adjustment for residence is the net inflow of the earnings of interarea
commuters. For the United States, it consists of adjustments for border
workers: Earnings of U.S. residents commuting outside U.S. borders to work
less earnings of foreign residents commuting inside U.S. borders to work
and of certain Caribbean seasonal workers.
6/ Includes the capital consumption adjustment for rental income of persons.
7/ Includes the inventory valuation and capital consumption adjustments.
8/ "Other" consists of wage and salary disbursements of U.S. residents
employed by international organizations and foreign embassies and
consulates in the United States.
9/ Under the 1972 Standard Industrial Classification, ordnance was
reclassified to four 2-digit industries: fabricated metal products;
electronic equipment, except computer equipment; transportation equipment;
and instruments and related products.
10/ Under the 1987 Standard Industrial Classification, combined real estate,
insurance, etc., was reclassified to four 2-digit industries: nondepository
credit institutions; insurance agents, brokers, and services; real estate;
and legal se~;ices.
11/ Social services is new under the 1972 Standard Industrial Classification;
it consists of establishments previously classified under hotels, health
services, educational se~;ices, membership organizations, and miscellaneous
services.
12/ Engineering and management services is new under the 1987 Standard
Industrial Classification; it consists of establishments previously
classified under business services and miscellaneous services.
13/ Estimates for 1979 forward reflect Alaska Census Areas as defined in the
1980 Decennial Census; those for prior years reflect Alaska Census
Divisions as defined in the 1970 Decennial Census. Estimates from 1988
forward separate Aleutian Islands Census Area into Aleutians East Borough
end Aleutians West Census Area. Estimates for 1991 forward separate Denall
Borough from Yukon-Koyukuk Census Area and Lake and Peninsula Borough from
Dillinqham Census Area. Estimates from 1993 forward separate
Skagway-Yakutat-Angoon Census Area into Skaqwa(Y)-~oenah-Anqoon Census Area
and Yakutat Borough.
14/ Cibola, N~ was separated from Valencia in June 1981, Put in these
estimates, Valencia includes Cibola through the end of 1981.
15/ La Paz county, AZ was separated from Yuma county on January 1, 1982. The
Yuma, AZ MSA contains La Paz, AZ through 1982.
16/ Shawano, WI and Menominee, WI are ccmDined as Shewane (incl. Menominee), WI
for the years prior to 1989.
E The estimate shown here constitutes the major portion of the true estimate.
(D) Not shown to avoid disclosure of confidential information. Estimates are
included in totals.
(L) Less than $50,000. Estimates are included in totals.
(N) Data not availaDle for this year.
FULL-TIME AND PART-TIME EMPLOYEES BY MAJOR INDUSTRY 1/
for States and counties
(number of jobs)
Massachusetts [25.000]
Item 1991 1992 1993 1994 1995
Employment by place of work
Total full- and part-time employment 3,494,927 3,525,426 3,587,035 3,660,161 3,739,475
By type
Wage and salary employment 2,989,002 2,965,438 3,018,307 3,076,393 3,148,459
Proprietors' employment 505,925 559,988 568,728 583,768 591,016
Farm proprietors' employment 6,534 6,519 5,816 5,566 5,382
Nonfarm proprietors' employment 499,391 553,469 562,912 578,202 585,634
By industry
Farm employment 12,506 12,351 11,620 11,521 10,965
Nonfarm employment 3,482,421 3,513,075 3,575,415 3,648,640 3,728,510
Private employment 3,045,497 3,084,831 3,143,415 3,220,662 3,296,927
Ag. serv., forestry, fishing, and other 3/ 29,252 29,431 32,441 33,981 35,276
Mining 2,308 2,436 2,391 2,567 2,537
Construction 139,172 142,552 147,838 158,277 162,979
Manufacturing 497,102 479,332 468,143 464,688 461,069
Transportation and public utilities 139,588 138,055 142,680 147,738 148,064
Wholesale trade 170,993 170,805 167,349 171,664 179,014
Retail trade 553,676 561,658 568,840 588,241 602,491
Finance, insurance, and real estate 296,454 287,584 291,684 301,940 298,174
Services 1,216,952 1,272,978 1,322,049 1,351,566 1,407,323
Government and government enterprises 436,924 428,244 432,000 427,978 431,583
Federal, civilian 60,452 59,571 59,688 58,680 57,879
Military 40,718 38,448 36,473 31,303 29,119
State and local 335,754 330,225 335,839 337,995 344,585
State 117,561 115,446 115,381 114,708 116,166
Local 218,193 214,779 220,458 223,287 228,419
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA25 August 1997 BUREAU OF ECONOMIC ANALYSIS
FULL-TIME AND PART-TIME EMPLOYEES BY MAJOR INDUSTRY 1/
for States and counties
(number of jobs)
Suffolk, MassachuseTts [25.025]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Employment by place of work
Total full- and part-time employment 613,601 610,746 629,028 641,695 652,737
By type
Wage and salary employment 568,885 563,763 576,964 589,932 600,594
Proprietors' employment 44,716 46,983 52,064 51,763 52,143
Farm proprietors' employment 0 0 0 0 0
Nonfarm proprietors' employment 2/ 44,716 46,983 52,064 51,763 52,143
By industry
Farm employment 0 0 0 0 0
Nonfarm employment 613,601 610,746 629,028 641,695 652,737
Private employment 511,858 512,899 529,033 542,493 551,864
Ag. serv., forestry, fishing, and other 3/ 1,131 1,168 1,234 1,312 1,147
Mining 231 187 178 162 162
Construction 12,440 12,009 12,781 13,869 14,956
Manufacturing 32,368 30,401 31,462 32,221 31,815
Transportation and public utilities 36,066 37,232 37,289 37,829 37,856
Wholesale trade 19,152 18,402 17,869 17,765 18,771
ReTail trade 62,024 62,498 63,270 66,242 66,807
Finance, insurance, and real estate 91,892 88,008 88,952 93,935 94,404
Services 256,554 262,994 275,998 279,158 285,946
Government and government enterprises 101,743 97,847 99,995 99,202 100,873
Federal, civilian 18,127 17,236 18,469 18,271 18,252
Military 4,940 4,369 4,261 3,800 3,~37
State and local 78,676 76,242 77,265 77,131 78,984
State 47,419 46,104 47,057 47,852 49,098
Local 31,257 30,138 30,208 29,279 29,886
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA25 August 1997 BUREAU OF ECONOMIC ANALYSIS
Footnotes for Table CA25
Total Full- and Part-time Employment by Major Industry
1/ 1969-74 based on 1967 SIC. 1975-87 based on 1972 SIC. 1988-95 baseQ on 1987
SIC.
2/ Excludes limited partners.
3/ "Other" consists of the number of jobs held by U.S. residents employed by
international organizations and foreign embassies and consulates in the
United States.
4/ Cibola, NM was separated from Valencia in June 1981, but in these estimates
Valencia includes Cibola through the en~ of 1981.
5/ La Paz county, AZ was separated from Yuma county on January 1, 1983. The
Yuma, AZ MSA includes La ?az, AZ throuqh 1982.
6/ Estimates for 1979 forward reflect Alaska Census Areas as defined in the
1980 Decennial Census; those for prior years reflect Alaska Census
Divisions as defined in the 1970 Decennial Census. Estimates from 1988
forward separate Aleutian Islands Census Area into Aleutians East Borough
and Aleutians West Census Area. Estimates for 1991 for~ard separate Denall
Borough from Yukon-Koyukuk Census Area and Lake and Peninsula ~OrdUgh from
Oillingham Census Area. Estimates from 1993 forward separate
Skagway-Yakutat-Angoon Census Area into Skacway-Hoonah-Anqoon Census Area
and Yakutat Borough.
7/ Shawand, WT and Menominee, WI are combined as Shawand {incl. Menominee), WI
for the years prior to 1989.
E Estimate shown constitutes the major portion of the true estimate.
(D) Not shown to avoid disclosure of confidential information. Estimates are
included in totals.
(L) Less than 10 jobs. Estimates are included in totals.
(N) Data not available for this year.
REGIONAL ECONOMIC PROFILE
for States and counties
Massachusetts [25.000]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Place of residence profile
Personal income (thousands of dollars) 141,629,206 147,305,222 152,471,825 159,030,895 170,038,696
Nonfarm personal income 141,454,043 147,120,444 152,276,042 158,877,284 169,884,249
Farm income 175,163 184,778 195,783 153,611 154,447
Derivation of personal income
Net earnings 1/ 92,147,488 97,804,238 101,486,208 106,171,780 113,205,098
Transfer payments 22,597,394 23,632,713 24,336,638 25,145,939 26,832,529
Income maintenance 2/ 1,748,699 1,950,805 2,028,240 2,059,937 2,077,080
Unemployment insurance 1,356,253 1,705,787 1,215,634 882,758 777,171
Retirement and other 19,492,442 19,976,121 21,092,764 22,203,244 23,978,278
Dividends, interest, and rent 26,884,324 25,868,271 26,648,979 27,713,176 30,001,069
Population (number of persons) 3/ 5,999,263 5,997,894 6,017,414 6,042,073 6,071,078
Per capita incomes (dollars) 4/
Per capita personal income 23,608 24,559 25,338 26,321 28,008
Per capita net earnings 15,360 16,306 16,865 17,572 18,647
Per capita transfer payments 3,767 3,940 4,044 4,162 4,420
Per capita income maintenance 291 325 337 341 342
Per capita unemployment insurance 226 284 202 146 128
Per capita retirement & other 3,249 3,331 3,505 3,675 3,950
Per capita dividends, interest, & rent 4,481 4,313 4,429 4,587 4,942
Place of work profile
Total earnings (place of work, $000} 100,727,163 106,734,364 110,888,890 116,250,016 123,970,025
Wages and salary disbursements 82,398,849 86,122,657 89,222,306 93,383,223 99,575,276
Other labor income 9,573,306 10,279,783 10,983,133 11,466,265 12,099,852
Proprietors' income 8,755,008 10,331,924 10,683,451 11,400,528 12,294,897
Nonfarm proprietors' income 8,658,280 10,222,899 10,570,591 11,328,374 12,231,599
Farm proprietors' income 96,728 109,025 112,860 72,154 63,298
Total full- and part- time employment 3,494,927 3,525,426 3,587,035 3,660,161 3,739,475
Wage and salary jobs 2,989,002 2,965,438 3,018,307 3,076,393 3,148,459
Number of proprietors 505,925 559,988 568,728 583,768 591,016
Number of nonfarm proprietors /5 499,391 553,469 562,912 578,202 585,634
NumDer of farm proprietors 6,534 6,519 5,816 5,566 5,382
Average earnings per job (dollars) 28,821 30,276 30,914 31,761 33,152
Wage & salary earnings per job 27,567 29,042 29,560 30,355 31,627
Average earnings per nonfarm proprietor 17,338 18,471 18,778 19,592 20,886
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA30 August 1997 BUREAU OF ECONOMIC ANALYSIS
REGIONAL ECONOMIC PROFILE
for States and counties
Suffolk, Massachusetts [25.025]
Item 1991 1992 1993 1994 1995
---- ---- ---- ---- ---- ----
Place of residence profile
Personal income (thousands of dollars) 16,528,594 17,045,610 17,724,049 18,535,162 19,890,786
Nonfarm personal income 16,528,594 17,045,610 I7,724,049 18,535,162 19,890,786
Farm income 0 0 0 0 0
Derivation of personal income
Net earnings 1/ 10,330,690 11,070,624 11,444,421 11,990,092 12,819,870
Transfer payments 3,231,539 3,240,702 3,344,617 3,459,202 3,720,950
Income maintenance 2/ 369,978 410,420 424,953 431,829 437,173
Unemployment insurance 146,532 178,396 127,874 93,801 86,786
Retirement and other 2,715,029 2,651,886 2,791,790 2,933,572 3,196,991
Dividends, interest, and rent 2,966,365 2,734,284 2,935,011 3,085,868 3,349,966
Population (number of persons) 3/ 649,263 640,005 639,522 639,017 647,570
Per capita incomes (dollars) 4/
Per capita personal income 25,457 26,634 27,715 29,006 30,716
Per capita net earnings 15,911 17,298 17,895 18,763 19,797
Per capita transfer payments 4,977 5,064 5,230 5,413 5,746
Per capita income maintenance 570 641 664 676 675
Per capita unemployment insurance 226 279 200 147 134
Per capita retirement & other 4,182 4,144 4,365 4,591 4,937
Per capita dividends, interest, & rent 4,569 4,272 4,589 4,829 5,173
Place of work profile
Total earnings (place of work, $000) 22,458,213 24,256,460 25,435,257 26,680,532 28,747,720
Wages and salary disbursements 18,760,490 20,037,164 20,962,645 21,871,230 23,569,174
Other labor income 2,015,479 2,202,185 2,377,394 2,499,352 2,669,266
Proprietors' income 1,682,244 2,017,111 2,095,218 2,309,950 2,509,280
Nonfarm proprietors' income 1,682,244 2,017,111 2,095,218 2,309,950 2,509,280
Farm proprietors' income 0 0 0 0 0
Total full- and part- time employment 613,601 610,746 629,028 641,695 652,737
Wage and salary jobs 568,885 563,763 576,964 589,932 600,594
Number of proprietors 44,716 46,983 52,064 51,763 52,143
Number of nonfarm proprietors /5 44,716 46,983 52,064 51,763 52,143
Number of farm proprietors 0 0 0 0 0
Average earnings per job (dollars) 36,601 39,716 40,436 41,578 44,042
Wage & salary earnings per job 32,978 35,542 36,333 37,074 39,243
Average earnings per nonfarm proprietor 37,621 42,933 40,243 44,626 48,123
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA30 August 1997 BUREAU OF ECONOMIC ANALYSIS
Footnotes for Table CA30, Regional Economic Profiles
1/ Total earnings less personal contributions for social insurance adjusted to
place of residence.
2/ Consists largely of supplemental security income payments, payments to
families with dependent children (AFDC), general assistance payments, food
stamp payments, and other assistance payments, including emergency
assistance.
3/ Census Bureau midyear population estimates. Estimates for 1990-95 reflect
county population estimates available as of March 1997. The population
estimates for the United States, Utah, and Cache, UT, 1991-94, have been
adjusted by BEA for consistency with a special, upward adjustment made by
the Census Bureau to its 1995 estimate for Cache County. Additionally, as a
result of special and test censuses conducted in 1995, the Census Bureau
reduced substantially the 1995 population estimates for Yuma, AZ; DeSoto,
LA; Dorchester, SC; and Montgome~t, TN, but made no adjustments to the
estimates for the other years. For these counties, BEA was unable to make
adjustments to the population estimates in time for this release, and the
estimates of per capita personal income are discontinuous between 1994 and
1995. BEA's further adjustments to the population estimates for 1991-94
will be reflected in the release of State per capita personal income on
September 19, 1997 and in the release of local area per capita personal
income in the Spring of 1998.
4/ Type of income divided by population yields a per capita for that type of
income.
5/ Excludes limited partners.
6/ Cibola, NM was separated from Valencia in June 1981, but in these estimates
Valencia includes Cibo!a through the end of 1981.
7/ La Paz county, AZ was separated from Yuma county on January 1, 1983. The
Yuma, AZ MSA includes La Paz, AZ through 1982.
8/ Estimates for 1979 forward reflect Alaska Census Areas as defined in the
1980 Decennial Census; those for prior years reflect Alaska Census
Divisions as defined in the 1970 Decennial Census. Estimates from 1988
forward separate Aleutian Islands Census Area into Aleutians East Borough
and Aleutians West Census Area. Estimates for 1991 forward separate Deneli
Borough from Yukon-Koyukuk Census Area and Lake and Peninsula Borough from
Dillingham Census Area. Estimates from 1993 forward separate
Skagway-Yakutat-Angoon Census Area into Skagway-Hoonah-Angoon Census Area
and Yakutat Borough.
9/ Shawand, W~ and Menominee, WI are cornDined as Shawand (incl. Menominee},
WI for the years prior to 1989.
(L) Less than $50,000 or less than 10 jobs, as appropriate. Estimates are
included in totals.
(N) Data not available for this year.
EXHIBIT III-1
General Characteristics of Publicly-Traded Institutions
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
California Companies
--------------------
AHM Ahmanson and Co. H.F. of CA NYSE Nationwide M.B. 54,519 371 12-31 10/72 58.50 6,596
GDW Golden West Fin. Corp. of CA NYSE Nationwide M.B. 39,669 249 12-31 05/59 85.00 4,895
GSB Golden State Bancorp of CA NYSE California Div. 16,029 D 178 06-30 10/83 20.56 1,141
DSL Downey Financial Corp. of CA NYSE Southern CA Thrift 5,872 85 12-31 01/71 27.13 762
BVCC Bay View Capital Corp. of CA OTC San Francisco CA M.B. 5,342 37 12-31 05/86 22.38 454
BPLS Bank Plus Corp. of CA OTC Los Angeles CA R.E. 4,220 37 12-31 / 10.25 199
FED FirstFed Fin. Corp. of CA NYSE Los Angeles CA R.E. 4,067 24 12-31 12/83 18.50 392
WES Westcorp Inc. of Orange CA NYSE California Div. 3,813 26 12-31 05/86 9.75 257
PFFB PFF Bancorp of Pomona CA OTC Southern CA Thrift 2,812 23 03-31 03/96 17.50 284
HEMT HF Bancorp of Hemet CA OTC Southern CA Thrift 1,066 19 06-30 06/95 15.00 96
HTHR Hawthorne Fin. Corp. of CA OTC Southern CA Thrift 1,047 6 12-31 / 16.75 53
ITLA ITLA Capital Corp of CA (3) OTC Los Angeles CA R.E. 1,011 6 12-31 10/95 19.50 150
QCBC Quaker City Bancorp of CA OTC Los Angeles CA R.E. 860 8 06-30 12/93 17.25 101
PROV Provident Fin. Holdings of CA OTC Southern CA M.B. 765 10 06-30 06/96 19.75 96
HBNK Highland Bancorp of CA OTC Los Angeles CA R.E. 556 7 12-31 / 41.00 95
MBBC Monterey Bay Bancorp of CA OTC West Central CA Thrift 403 7 12-31 02/95 16.00 63
SGVB SGV Bancorp of W. Covina CA OTC Los Angeles CA Thrift 401 8 06-30 06/95 16.00 38
LFCO Life Financial Corp of CA OTC Southern CA Thrift 387 5 12-31 / 9.25 61
BYFC Broadway Fin. Corp. of CA OTC Los Angeles CA Thrift 128 3 12-31 01/96 9.72 9
Florida Companies
-----------------
BANC BankAtlantic Bancorp of FL OTC Southeastern FL M.B. 3,526 60 12-31 11/83 11.44 420
OCN Ocwen Financial Corp. of FL NYSE Southeast FL Div. 3,421 1 12-31 / 18.25 1,109
BKUNA BankUnited Fin. Corp. of FL OTC Miami FL Thrift 3,327 16 09-30 12/85 10.63 189
FFPB First Palm Beach Bancorp of FL OTC Southeast FL Thrift 1,791 47 09-30 09/93 39.63 204
FFFL Fidelity Bcsh MHC of FL (47.9) OTC Southeast FL Thrift 1,321 20 12-31 01/94 26.50 180
HARB Harbor Florida Bancshrs of FL OTC Eastern FL Thrift 1,284 23 09-30 03/98 11.50 354
CMSV Commty. Svgs, MHC of FL (48.5) OTC Southeast FL Thrift 761 21 12-31 10/94 28.50 145
FFLC FFLC Bancorp of Leesburg FL OTC Central FL Thrift 409 9 12-31 01/94 18.00 67
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
DME Dime Bancorp, Inc. of NY (3) NYSE NY,NJ,FL M.B. 22,024 91 12-31 08/86 26.38 2,995
SVRN Sovereign Bancorp, Inc. of PA OTC PA,NJ,DE M.B. 18,097 150 12-31 08/86 15.13 2,306
GPT GreenPoint Fin. Corp. of NY (3) NYSE New York City NY Thrift 13,228 74 12-31 01/94 32.88 2,742
ASFC Astoria Financial Corp. of NY OTC New York City NY Thrift 10,895 61 12-31 11/93 43.25 1,147
LISB Long Island Bancorp, Inc of NY OTC Long Island NY M.B. 6,296 35 09-30 04/94 48.56 1,174
ICBC Independence Comm Bnk Cp of NY OTC New York City Thrift 5,223 34 March 03/98 13.19 1,003
ALBK ALBANK Fin. Corp. of Albany NY OTC Upstate NY,MA,VT Thrift 4,089 108 12-31 04/92 60.00 793
ROSE T R Financial Corp. of NY (3) OTC New York City NY Thrift 4,006 15 12-31 06/93 33.25 583
RSLN Roslyn Bancorp, Inc. of NY (3) OTC Long Island NY M.B. 3,707 8 12-31 01/97 18.63 771
SIB Staten Island Bancorp of NY (3) NYSE New York City NY Thrift 2,671 16 12-31 12/97 19.31 871
NWSB Northwest Bcrp MHC of PA (30.8 OTC Northwest PA Thrift 2,410 67 06-30 11/94 12.75 597
CMSB Commonwealth Bancorp Inc of PA OTC Philadelphia PA M.B. 2,390 56 12-31 06/96 16.75 259
HARS Harris Fin. MHC of PA (24.9) OTC Harrisburg PA M.B. 2,260 33 12-31 01/94 17.75 603
RELY Reliance Bancorp, Inc. of NY OTC New York City NY Thrift 2,180 30 06-30 03/94 29.25 280
HAVN Haven Bancorp of Woodhaven NY OTC New York City NY Thrift 2,018 33 12-31 09/93 21.50 190
QCSB Queens County Bancorp of NY (3) OTC New York City NY Thrift 1,622 11 12-31 11/93 40.56 606
DCOM Dime Community Bancorp of NY (3) OTC New York City NY Thrift 1,577 15 06-30 06/96 23.00 280
JSB JSB Financial, Inc. of NY (3) NYSE New York City NY Thrift 1,564 13 12-31 06/90 49.44 486
WSFS WSFS Financial Corp. of DE (3) OTC Wilmington Div. 1,535 16 12-31 11/86 17.88 224
OCFC Ocean Fin. Corp. of NJ OTC Eastern NJ Thrift 1,518 10 12-31 07/96 16.94 263
PFSB PennFed Fin. Services of NJ OTC Northern NJ Thrift 1,469 18 06-30 07/94 14.44 136
RCBK Richmond County Fin Corp of NY OTC New York City Thrift 1,464 13 June 02/98 15.06 398
TSBS Peoples Bancorp Inc of NJ (3) OTC Central NJ Thrift 1,308 P 14 12-31 04/98 8.13 295
NBCP Niagara Bancorp of NY MHC(45.4 (3) OTC Northern NY Thrift 1,296 P 15 12/31 04/98 11.38 339
YFED York Financial Corp. of PA OTC PA,MD Thrift 1,218 22 06-30 02/84 19.25 173
FSLA First Source Bancorp of NJ OTC Eastern NJ Thrift 1,192 P 17 12-31 04/98 8.94 284
MFSL Maryland Fed. Bancorp of MD OTC Southern MD Thrift 1,192 27 02-28 06/87 38.56 253
FFIC Flushing Fin. Corp. of NY (3) OTC New York City NY Thrift 1,078 7 12-31 11/95 23.25 182
PVSA Parkvale Financial Corp of PA OTC Southwestern PA Thrift 1,055 29 06-30 07/87 32.13 166
ESBF ESB Financial Corp of PA OTC Western PA Thrift 946 11 12-31 06/90 16.50 93
GAF GA Financial Corp. of PA AMEX Pittsburgh PA Thrift 818 13 12-31 03/96 16.88 122
HRBT Hudson River Bancorp Inc of NY OTC Southeast NY Thrift 815 P 11 03-31 07/98 12.00 214
SFIN Statewide Fin. Corp. of NJ OTC Northern NJ Thrift 671 16 12-31 10/95 19.00 84
FMCO FMS Financial Corp. of NJ OTC Southern NJ Thrift 669 20 12-31 12/88 12.00 86
FBBC First Bell Bancorp of PA OTC Pittsburgh PA Thrift 665 7 12-31 06/95 17.50 114
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
Mid-Atlantic Companies (continued)
----------------------------------
FSNJ Bayonne Banchsares of NJ OTC Northern NJ Thrift 646 4 03-31 08/97 14.94 136
THRD TF Financial Corp. of PA OTC PA, NJ Thrift 639 14 12-31 07/94 24.00 77
LVSB Lakeview Financial of NJ OTC Northern NJ Thrift 620 8 07-31 12/93 21.25 106
PULS Pulse Bancorp of S. River NJ OTC Central NJ Thrift 540 4 09-30 09/86 29.00 90
AHCI Ambanc Holding Co., Inc. of NY (3) OTC East-Central NY Thrift 520 12 12-31 12/95 15.06 62
PFNC Progress Financial Corp. of PA OTC Southeastern PA Thrift 485 10 12-31 07/83 16.00 84
NEP Northeast PA Fin. Corp of PA AMEX Northeast PA Thrift 443 10 DEC 04/98 12.19 78
CNY Carver Bancorp, Inc. of NY AMEX New York, NY Thrift 437 7 03-31 10/94 11.63 27
RARB Raritan Bancorp of Raritan NJ (3) OTC Central NJ Thrift 419 6 12-31 03/87 28.00 66
FSBI Fidelity Bancorp, Inc. of PA OTC Southwestern PA Thrift 403 8 09-30 06/88 20.25 40
FKFS First Keystone Fin. Corp of PA OTC Philadelphia PA Thrift 385 5 09-30 01/95 14.00 34
PBCI Pamrapo Bancorp, Inc. of NJ OTC Northern NJ Thrift 381 10 12-31 11/89 28.00 80
WSBI Warwick Community Bncrp of NY (3) OTC Southeast NY Thrift 371 4 05-31 12/97 14.25 94
FOBC Fed One Bancorp of Wheeling WV OTC Northern WV,OH Thrift 368 11 12-31 01/95 38.00 91
HARL Harleysville SB of PA OTC Southeastern PA Thrift 368 4 09-30 08/87 30.25 51
LFBI Little Falls Bancorp of NJ OTC New Jersey Thrift 355 6 12-31 01/96 16.00 40
THTL Thistle Group Holdings of PA OTC Philadelphia Thrift 349 P 6 12-31 07/98 9.00 81
YFCB Yonkers Fin. Corp. of NY OTC Yonkers NY Thrift 344 4 09-30 04/96 16.06 45
CVAL Chester Valley Bancorp of PA OTC Southeastern PA Thrift 344 7 06-30 03/87 31.50 73
PHFC Pittsburgh Home Fin Corp of PA OTC Pittsburgh PA Thrift 338 9 09-30 04/96 16.00 32
EQSB Equitable FSB of Wheaton MD OTC Central MD Thrift 335 4 09-30 09/93 28.25 35
FBER 1st Bergen Bancorp of NJ OTC Northern NJ Thrift 316 4 12-31 04/96 14.75 38
FIBC Financial Bancorp, Inc. of NY OTC New York City NY Thrift 310 5 09-30 08/94 36.81 63
LFED Leeds Fed Bksr MHC of MD (36.3 OTC Baltimore MD Thrift 299 1 06-30 05/94 17.50 91
WVFC WVS Financial Corp. of PA OTC Pittsburgh PA Thrift 298 5 06-30 11/93 15.75 57
CATB Catskill Fin. Corp. of NY (3) OTC Albany NY Thrift 296 4 09-30 04/96 15.75 71
IFSB Independence FSB of DC OTC Washington DC Ret. 275 2 12-31 06/85 16.38 21
BCSB BCSB Bankcorp MHC of MD (38.6) OTC Baltimore Thrift 274 P 6 12-31 07/98 11.38 70
WSB Washington SB, FSB of MD AMEX Southeastern MD Thrift 274 5 12-31 / 5.69 25
ALLB Alliance Bank MHC of PA (19.9) OTC Southeast PA Thrift 273 7 12-31 03/95 21.25 70
WYNE Wayne Bancorp, Inc. of NJ OTC Northern NJ Thrift 272 5 12-31 06/96 31.50 63
SKAN Skaneateles Bancorp Inc of NY (3) OTC Northwest NY Thrift 258 9 12-31 06/86 17.00 25
SBFL SB Fngr Lakes MHC of NY (33.1) OTC Western NY Thrift 251 5 12-31 11/94 16.00 57
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
Mid-Atlantic Companies (continued)
----------------------------------
LIBB Liberty Bancorp MHC of NJ (47) OTC Northeast NJ Thrift 241 P 4 12-31 07/98 10.25 40
HRBF Harbor Federal Bancorp of MD OTC Baltimore MD Thrift 231 9 03-31 08/94 18.25 34
ESBK Elmira Svgs Bank (The) of NY (3) OTC NY,PA Thrift 230 6 12-31 03/85 26.00 19
PHSB Ppls Home SB, MHC of PA (45.0) OTC Western PA Thrift 223 9 12-31 07/97 16.25 45
LARL Laurel Capital Group of PA OTC Southwestern PA Thrift 217 6 06-30 02/87 20.00 44
CRSB Crusader Holding Corp of PA OTC Philadephia Thrift 202 2 12-31 / 14.50 56
PBHC Pathfinder BC MHC of NY (45.2) (3) OTC Upstate NY Thrift 196 5 12-31 11/95 15.00 42
PEEK Peekskill Fin. Corp. of NY OTC Southeast NY Thrift 196 3 06-30 12/95 15.75 46
PLSK Pulaski SB, MHC of NJ (47.0) OTC New Jersey Thrift 191 6 12-31 04/97 14.88 31
SFED SFS Bancorp of Schenectady NY OTC Eastern NY Thrift 175 4 12-31 06/95 27.50 33
AFED AFSALA Bancorp, Inc. of NY OTC Central NY Thrift 166 5 09-30 10/96 17.88 24
PRBC Prestige Bancorp of PA OTC Southwestern PA Thrift 161 4 12-31 06/96 16.00 17
SKBO First Carnegie MHC of PA(45.0) OTC Western PA Thrift 148 3 03-31 04/97 13.25 30
PSBI PSB Bancorp Inc. of PA (3) OTC Philadelphia Thrift 147 P 6 12-31 07/98 7.75 24
TPNZ Tappan Zee Fin., Inc. of NY OTC Southeast NY Thrift 129 1 03-31 10/95 19.50 29
GOSB GSB Financial Corp. of NY (3) OTC Southeast NY Thrift 119 2 09-30 07/97 13.50 30
WHGB WHG Bancshares of MD OTC Baltimore MD Thrift 118 5 09-30 04/96 11.00 15
AFBC Advance Fin. Bancorp of WV OTC Northern Neck WV Thrift 111 2 06-30 01/97 15.75 17
USAB USABancshares, Inc of PA (3) OTC Philadelphia PA Thrift 103 1 12-31 / 11.50 23
ALBC Albion Banc Corp. of Albion NY OTC Western NY Thrift 73 2 09-30 07/93 9.75 7
PWBK Pennwood Bancorp, Inc. of PA OTC Pittsburgh PA Thrift 46 3 06-30 07/96 12.31 9
Mid-West Companies
------------------
COFI Charter One Financial of OH OTC OH,MI,NY Div. 19,457 221 12-31 01/88 28.50 3,638
CFB Commercial Federal Corp. of NE NYSE NE,CO,KS,OK,IA M.B. 8,529 108 06-30 12/84 25.88 1,088
SPBC St. Paul Bancorp, Inc. of IL OTC Chicago IL Div. 4,583 52 12-31 05/87 21.56 741
MAFB MAF Bancorp, Inc. of IL OTC Chicago IL Thrift 3,511 21 12-31 01/90 21.00 474
FLGS Flagstar Bancorp, Inc of MI OTC MI Thrift 2,564 19 12/31 / 26.75 366
ABCW Anchor Bancorp Wisconsin of WI OTC Wisconsin M.B. 1,999 35 03-31 07/92 42.38 378
DNFC D&N Financial Corp. of MI OTC Northern MI Ret. 1,868 37 12-31 02/85 22.25 204
FISB First Indiana Corp. of IN OTC Central IN M.B. 1,688 26 12-31 08/83 23.38 299
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
Mid-West Companies (continued)
------------------------------
STFR St. Francis Cap. Corp. of WI OTC Milwaukee WI Thrift 1,648 23 09-30 06/93 39.50 202
FTFC First Fed. Capital Corp. of WI OTC Southern WI M.B. 1,580 49 12-31 11/89 16.00 296
ABCL Alliance Bancorp, Inc. of IL OTC Chicago IL M.B. 1,537 14 12-31 07/92 21.50 246
CITZ CFS Bancorp, Inc. of IN OTC IN,IL Thrift 1,421 P 24 12-31 07/98 10.00 227
UCFC United Community Fin. of OH OTC Youngstown Thrift 1,291 P 14 12-31 07/98 14.81 496
JSBA Jefferson Svgs Bancorp of MO OTC St. Louis MO,TX Thrift 1,242 32 12-31 04/93 20.25 203
METF Metropolitan Fin. Corp. of OH OTC Northeast OH Thrift 990 15 12-31 / 13.63 96
OFCP Ottawa Financial Corp. of MI OTC Western MI Thrift 915 26 12-31 08/94 24.13 138
CFSB CFSB Bancorp of Lansing MI OTC Central MI Thrift 846 17 12-31 06/90 22.50 184
HMNF HMN Financial, Inc. of MN OTC Southeast MN Thrift 732 7 12-31 06/94 15.25 83
HOMF Home Fed Bancorp of Seymour IN OTC Southern IN Thrift 705 16 06-30 01/88 25.25 130
SFSL Security First Corp. of OH OTC Northeastern OH R.E. 686 14 03-31 01/88 21.00 165
FNGB First Northern Cap. Corp of WI OTC Northeast WI Thrift 677 19 12-31 12/83 12.63 112
MSBK Mutual SB, FSB of Bay City MI OTC Michigan M.B. 657 22 12-31 07/92 9.31 40
FFYF FFY Financial Corp. of OH OTC Youngstown OH Thrift 645 10 06-30 06/93 34.75 139
EMLD Emerald Financial Corp. of OH OTC Cleveland OH Thrift 616 14 12-31 / 12.00 123
AVND Avondale Fin. Corp. of IL OTC Chicago IL Ret. 607 5 12-31 04/95 14.25 44
FDEF First Defiance Fin.Corp. of OH OTC Northwest OH Thrift 578 10 12-31 10/95 12.63 103
CAFI Camco Fin. Corp. of OH OTC Eastern OH M.B. 576 11 12-31 / 17.00 93
FFSX First FSB MHC Sxld of IA(46.3) OTC Western IA Thrift 571 13 06-30 07/92 32.50 92
HFFC HF Financial Corp. of SD OTC South Dakota Thrift 570 19 06-30 04/92 19.44 85
HFGI Harrington Fin. Group of IN OTC Eastern IN Thrift 553 4 06-30 / 9.69 32
FFOH Fidelity Financial of OH OTC Cincinnati OH Thrift 540 12 12-31 03/96 14.25 80
FCBF FCB Fin. Corp. of Neenah WI OTC Eastern WI Thrift 518 13 03-31 09/93 29.50 114
CBCI Calumet Bancorp of Chicago IL OTC Chicago IL Thrift 490 5 12-31 02/92 29.25 92
FBCI Fidelity Bancorp of Chicago IL OTC Chicago IL Thrift 484 5 09-30 12/93 24.00 68
PERM Permanent Bancorp, Inc. of IN OTC Southwest IN Thrift 439 11 03-31 04/94 13.50 56
HALL Hallmark Capital Corp. of WI OTC Milwaukee WI Thrift 421 3 06-30 01/94 13.25 39
PVFC PVF Capital Corp. of OH OTC Cleveland OH R.E. 419 9 06-30 12/92 15.75 63
FFHH FSF Financial Corp. of MN OTC Southern MN Thrift 411 11 09-30 10/94 17.13 50
FFKY First Fed. Fin. Corp. of KY OTC Central KY Thrift 407 8 06-30 07/87 24.75 102
CASH First Midwest Fin., Inc. of OH OTC IA,SD R.E. 406 12 09-30 09/93 19.13 50
KNK Kankakee Bancorp, Inc. of IL AMEX Illinois Thrift 399 9 12-31 01/93 29.88 41
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
Mid-West Companies (continued)
------------------------------
EFC EFC Bancorp Inc of IL AMEX Southeast IL Thrift 391 P 6 DEC 04/98 11.25 84
FMBD First Mutual Bancorp Inc of IL OTC Central IL Thrift 390 14 12-31 07/95 17.13 60
ASBI Ameriana Bancorp of IN OTC Eastern IN,OH Thrift 389 8 12-31 03/87 18.50 60
INBI Industrial Bancorp of OH OTC Northern OH Thrift 374 10 12-31 08/95 19.38 97
HBEI Home Bancorp of Elgin IL OTC Northern IL Thrift 369 4 12-31 09/96 14.50 99
EFBI Enterprise Fed. Bancorp of OH OTC Cincinnati OH Thrift 366 5 09-30 10/94 28.00 62
WOFC Western Ohio Fin. Corp. of OH OTC Western OH Thrift 365 10 12-31 07/94 22.63 52
HBFW Home Bancorp of Fort Wayne IN OTC Northeast IN Thrift 353 9 09-30 03/95 28.63 67
FFFD North Central Bancshares of IA OTC Central IA Thrift 333 4 12-31 03/96 18.25 57
WFI Winton Financial Corp. of OH AMEX Cincinnati OH R.E. 324 S 5 09-30 08/88 14.13 57
FSFF First SecurityFed Fin of IL OTC Chicago, IL Thrift 323 5 12-31 10/97 14.00 90
WCBI WestCo Bancorp, Inc. of IL OTC Chicago IL Thrift 319 1 12-31 06/92 28.00 70
PFDC Peoples Bancorp of Auburn IN OTC Northeastern IN Thrift 301 7 09-30 07/87 21.00 70
GFCO Glenway Financial Corp. of OH OTC Cincinnati OH Thrift 300 5 06-30 11/90 21.75 50
MFBC MFB Corp. of Mishawaka IN OTC Northern IN Thrift 291 5 09-30 03/94 24.00 38
CBK Citizens First Fin.Corp. of IL AMEX Central IL Thrift 280 7 12-31 05/96 16.25 41
WAYN Wayne Svgs Bks MHC of OH (48.2 OTC Central OH Thrift 260 6 03-31 06/93 22.25 55
FBCV 1st Bancorp of Vincennes IN OTC Southwestern IN M.B. 260 2 06-30 04/87 45.00 49
EBI Equality Bancorp, Inc. of MO AMEX St Louis Thrift 256 3 03-31 12/97 13.88 35
OHSL OHSL Financial Corp. of OH OTC Cincinnati, OH Thrift 251 5 12-31 02/93 15.50 39
GFED Guaranty Fed Bancshares of MO OTC Southwest MO Thrift 246 4 06-30 12/97 12.63 79
FFHS First Franklin Corp. of OH OTC Cincinnati OH Thrift 232 7 12-31 01/88 16.00 29
LARK Landmark Bancshares, Inc of KS OTC Central KS Thrift 231 5 09-30 03/94 22.06 34
MFFC Milton Fed. Fin. Corp. of OH OTC Southwest OH Thrift 227 3 09-30 10/94 13.50 30
HFBC HopFed Bancorp of KY OTC Southwest KY Thrift 221 5 09-30 02/98 17.50 71
CMRN Cameron Fin. Corp. of MO OTC Northwest MO Thrift 221 3 09-30 04/95 17.25 42
LSBI LSB Fin. Corp. of Lafayette IN OTC Central IN Thrift 216 4 12-31 02/95 31.00 30
FFBZ First Federal Bancorp of OH OTC Eastern OH Thrift 212 6 09-30 07/92 12.00 38
BFFC Big Foot Fin. Corp. of IL OTC Chicago IL Thrift 209 3 06-30 12/96 15.75 40
WEFC Wells Fin. Corp. of Wells MN OTC Southcentral MN Thrift 209 8 12-31 04/95 18.38 35
MBLF MBLA Financial Corp. of MO OTC Northeast MO Thrift 207 2 06-30 06/93 19.25 24
NEIB Northeast Indiana Bncrp of IN OTC Northeast IN Thrift 200 3 12-31 06/95 21.13 35
FFWC FFW Corporation of Wabash IN OTC Central IN Thrift 199 4 06-30 04/93 18.00 26
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
Mid-West Companies (continued)
------------------------------
FFED Fidelity Fed. Bancorp of IN OTC Southwestern IN Thrift 197 4 06-30 08/87 5.88 18
PFED Park Bancorp of Chicago IL OTC Chicago IL Thrift 197 3 12-31 08/96 17.94 43
MARN Marion Capital Holdings of IN OTC Central IN Thrift 193 2 06-30 03/93 22.75 39
HMLK Hemlock Fed. Fin. Corp. of IL OTC Chicago IL Thrift 191 3 12-31 04/97 16.63 33
PULB Pulaski Bk,SB MHC of MO (29.8) OTC St. Louis MO Thrift 184 5 09-30 05/94 28.16 59
BWFC Bank West Fin. Corp. of MI OTC Southeast MI Thrift 180 3 06-30 03/95 12.25 32
EGLB Eagle BancGroup of IL OTC Central IL Thrift 180 3 12-31 07/96 18.00 21
FBSI First Bancshares, Inc. of MO OTC Southcentral MO Thrift 178 6 06-30 12/93 13.31 29
JXSB Jcksnville SB,MHC of IL (45.6) OTC Central IL Thrift 170 4 12-31 04/95 16.75 32
FFWD Wood Bancorp of OH OTC Northern OH Thrift 165 7 06-30 08/93 16.25 43
MWBI Midwest Bancshares, Inc. of IA OTC Southeast IA Thrift 159 4 12-31 11/92 13.50 14
SMBC Southern Missouri Bncrp of MO OTC Southeast MO Thrift 157 8 06-30 04/94 16.63 25
QCFB QCF Bancorp of Virginia MN OTC Northeast MN Thrift 154 2 06-30 04/95 29.63 40
MIFC Mid Iowa Financial Corp. of IA OTC Central IA Thrift 147 7 09-30 10/92 13.75 24
GTPS Great American Bancorp of IL OTC East Central IL Thrift 146 3 12-31 06/95 19.00 30
RIVR River Valley Bancorp of IN OTC Southeast IN Thrift 134 6 12-31 12/96 16.88 20
FKKY Frankfort First Bancorp of KY OTC Frankfort KY Thrift 133 3 06-30 07/95 14.56 24
CLAS Classic Bancshares, Inc. of KY OTC Eastern KY Thrift 131 3 03-31 12/95 16.50 21
WEHO Westwood Hmstd Fin Corp of OH OTC Cincinnati OH Thrift 130 2 12-31 09/96 11.88 30
CFKY Columbia Financial of KY OTC NorthCentral KY Thrift 127 P 5 12-31 04/98 13.50 36
PTRS Potters Financial Corp of OH OTC Northeast OH Thrift 127 4 12-31 12/93 14.50 14
FFSL First Independence Corp. of KS OTC Southeast KS Thrift 124 2 09-30 10/93 12.25 12
HFSA Hardin Bancorp of Hardin MO OTC Western MO Thrift 121 3 03-31 09/95 17.38 14
NBSI North Bancshares of Chicago IL OTC Chicago IL Thrift 118 2 12-31 12/93 12.25 15
CBES CBES Bancorp, Inc. of MO OTC Western MO Thrift 116 2 06-30 09/96 19.50 18
ASBP ASB Financial Corp. of OH OTC Southern OH Thrift 115 1 06-30 05/95 12.75 21
BDJI First Fed. Bancorp. of MN OTC Northern MN Thrift 113 5 09-30 04/95 15.50 15
DCBI Delphos Citizens Bancorp of OH OTC Northwest OH Thrift 113 1 09-30 11/96 16.25 30
FTNB Fulton Bancorp, Inc. of MO OTC Central MO Thrift 110 2 06-30 10/96 18.00 31
MONT Montgomery Fin. Corp. of IN OTC Westcentral IN Thrift 109 4 06-30 07/97 10.31 17
HFFB Harrodsburg 1st Fin Bcrp of KY OTC Central KY Thrift 109 2 09-30 10/95 15.00 29
UCBC Union Community Bancorp of IN OTC W.Central IN Thrift 108 1 12-31 12/97 13.00 40
FKAN First Kansas Financial of KS OTC Kansas City subs Thrift 108 P 6 12-31 06/98 11.31 18
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
Mid-West Companies (continued)
------------------------------
AMFC AMB Financial Corp. of IN OTC Northwest IN Thrift 106 4 12-31 04/96 15.75 14
PSFC Peoples Sidney Fin. Corp of OH OTC WestCentral OH Thrift 106 1 06-30 04/97 19.63 35
CIBI Community Inv. Bancorp of OH OTC NorthCentral OH Thrift 102 3 06-30 02/95 13.25 18
FTSB Fort Thomas Fin. Corp. of KY OTC Northern KY Thrift 102 2 09-30 06/95 13.63 20
FFDF FFD Financial Corp. of OH OTC Northeast OH Thrift 100 1 06-30 04/96 16.75 24
NWEQ Northwest Equity Corp. of WI OTC Northwest WI Thrift 99 3 03-31 10/94 17.44 14
THR Three Rivers Fin. Corp. of MI AMEX Southwest MI Thrift 98 4 06-30 08/95 17.75 15
CNSB CNS Bancorp, Inc. of MO OTC Central MO Thrift 98 5 12-31 06/96 14.75 24
LXMO Lexington B&L Fin. Corp. of MO OTC West Central MO Thrift 95 1 09-30 06/96 15.00 15
WCFB Wbstr Cty FSB MHC of IA (45.6) OTC Central IA Thrift 94 1 12-31 08/94 17.63 37
HZFS Horizon Fin'l. Services of IA OTC Central IA Thrift 93 3 06-30 06/94 15.00 13
HHFC Harvest Home Fin. Corp. of OH OTC Southwest OH Thrift 91 3 09-30 10/94 14.75 13
SOBI Sobieski Bancorp of S. Bend IN OTC Northern IN Thrift 90 3 06-30 03/95 15.75 12
SFFC StateFed Financial Corp. of IA OTC Des Moines IA Thrift 90 2 06-30 01/94 12.75 20
LOGN Logansport Fin. Corp. of IN OTC Northern IN Thrift 89 1 12-31 06/95 14.75 19
PCBC Perry Co. Fin. Corp. of MO OTC EastCentral MO Thrift 86 1 09-30 02/95 20.00 17
PSFI PS Financial of Chicago IL OTC Chicago IL Thrift 84 1 12-31 11/96 12.13 24
PFFC Peoples Fin. Corp. of OH OTC Northeast OH Thrift 82 2 09-30 09/96 12.00 16
KYF Kentucky First Bancorp of KY AMEX Central KY Thrift 82 2 06-30 08/95 14.00 17
HLFC Home Loan Financial Corp of OH OTC Central Ohio Thrift 80 0 03/98 14.88 33
MSBF MSB Financial, Inc of MI OTC Southcentral MI Thrift 79 2 06-30 02/95 14.50 19
HCFC Home City Fin. Corp. of OH OTC Southwest OH Thrift 76 1 06-30 12/96 14.63 13
CKFB CKF Bancorp of Danville KY OTC Central KY Thrift 63 1 12-31 01/95 17.38 15
NSLB NS&L Bancorp, Inc of Neosho MO OTC Southwest MO Thrift 61 2 09-30 06/95 17.38 12
MRKF Market Fin. Corp. of OH OTC Cincinnati OH Thrift 58 2 09-30 03/97 13.00 17
FLKY First Lancaster Bncshrs of KY OTC Central KY Thrift 53 1 06-30 07/96 13.75 13
CSBF CSB Financial Group Inc of IL OTC Centralia IL Thrift 48 2 09-30 10/95 10.63 9
RELI Reliance Bancshares Inc of WI OTC Milwaukee WI Thrift 44 1 06-30 04/96 9.38 22
HWEN Home Financial Bancorp of IN OTC Central IN Thrift 41 1 06-30 07/96 8.25 8
New England Companies
---------------------
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
New England Companies (continued)
---------------------------------
PBCT Peoples Bank, MHC of CT (41.2) (3) OTC Southwestern CT Div. 9,149 111 12-31 07/88 27.00 1,732
WBST Webster Financial Corp. of CT OTC Central CT Thrift 7,559 84 12-31 12/86 27.25 1,044
PHBK Peoples Heritage Fin Grp of ME (3) OTC ME,NH,MA Div. 7,310 141 12-31 12/86 19.25 1,686
SISB SIS Bancorp, Inc. of MA (3) OTC Central MA Div. 1,794 25 12-31 02/95 42.50 296
ANDB Andover Bancorp, Inc. of MA (3) OTC MA,NH M.B. 1,386 12 12-31 05/86 33.13 215
FESX First Essex Bancorp of MA (3) OTC MA,NH Div. 1,293 15 12-31 08/87 19.00 144
FAB FirstFed America Bancorp of MA AMEX MA,RI M.B. 1,282 13 03-31 01/97 17.00 141
MDBK Medford Bancorp, Inc. of MA (3) OTC Eastern MA Thrift 1,120 16 12-31 03/86 38.50 172
BFD BostonFed Bancorp of MA AMEX Boston MA M.B. 1,032 10 12-31 10/95 19.25 104
DIBK Dime Financial Corp. of CT (3) OTC Central CT Thrift 1,016 11 12-31 07/86 31.69 168
FFES First Fed of E. Hartford CT OTC Central CT Thrift 991 12 12-31 06/87 31.00 85
MECH MECH Financial Inc of CT (3) OTC Hartford CT Thrift 946 14 12-31 06/96 28.00 148
MASB MassBank Corp. of Reading MA (3) OTC Eastern MA Thrift 929 15 12-31 05/86 45.00 162
PBKB People's Bancshares of MA (3) OTC Southeastern MA Thrift 862 14 12-31 10/86 18.75 62
BRKL Brookline Bncp MHC of MA(47.0) OTC Brookline Thrift 817 5 08-31 03/98 12.75 371
NSSY NSS Bancorp of CT (3) OTC Southwest CT Thrift 669 8 12-31 06/94 48.50 115
BKC American Bank of Waterbury CT (3) AMEX Western CT Thrift 651 14 12-31 12/81 23.63 111
MWBX MetroWest Bank of MA (3) OTC Eastern MA Thrift 647 12 12-31 10/86 7.00 100
ABBK Abington Bancorp of MA (3) OTC Southeastern MA M.B. 550 8 12-31 06/86 16.75 59
SWCB Sandwich Bancorp of MA (3) OTC Southeastern MA Thrift 527 11 12-31 07/86 60.25 123
BKCT Bancorp Connecticut of CT (3) OTC Central CT Thrift 480 3 12-31 07/86 17.88 91
CEBK Central Co-Op. Bank of MA (3) OTC Eastern MA Thrift 376 8 03-31 10/86 21.00 41
WRNB Warren Bancorp of Peabody MA (3) OTC Eastern MA R.E. 373 6 12-31 07/86 10.94 86
NMSB Newmil Bancorp, Inc. of CT (3) OTC Western CT Thrift 370 15 06-30 02/86 12.00 46
LSBX Lawrence Savings Bank of MA (3) OTC Northeastern MA Thrift 355 5 12-31 05/86 13.25 57
NHTB NH Thrift Bancshares of NH OTC Central NH Thrift 321 10 12-31 05/86 15.50 32
NBN Northeast Bancorp of ME (3) AMEX Eastern ME Thrift 311 11 06-30 08/87 13.63 30
BYS Bay State Bancorp of MA (3) NYSE Brookline Thrift 290 P 0 DEC 03/98 24.25 61
ANE Alliance Bncp of New Eng of CT (3) AMEX Northern CT Thrift 247 7 12-31 12/86 12.25 31
IPSW Ipswich SB of Ipswich MA (3) OTC Northwest MA Thrift 238 6 12-31 05/93 13.50 32
HIFS Hingham Inst. for Sav. of MA (3) OTC Eastern MA Thrift 232 5 12-31 12/88 26.75 35
HPBC Home Port Bancorp, Inc. of MA (3) OTC Southeastern MA Thrift 226 2 12-31 08/88 24.25 45
MYST Mystic Financial of MA (3) OTC Medford Thrift 188 3 06-30 01/98 13.63 37
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
New England Companies (continued)
---------------------------------
KSBK KSB Bancorp of Kingfield ME (3) OTC Western ME M.B. 155 8 12-31 06/93 16.50 21
FCME First Coastal Corp. of ME (3) OTC Southern ME Thrift 150 7 12-31 / 12.00 16
MFLR Mayflower Co-Op. Bank of MA (3) OTC Southeastern MA Thrift 136 4 04-30 12/87 22.13 20
NTMG Nutmeg FS&LA of CT OTC Eastern CT M.B. 112 3 12-31 / 11.88 13
FCB Falmouth Bancorp, Inc. of MA (3) AMEX Southeast MA Thrift 105 2 09-30 03/96 18.00 26
MCBN Mid-Coast Bancorp of ME OTC Eastern ME Thrift 63 2 03-31 11/89 9.00 6
North-West Companies
--------------------
WFSL Washington Federal, Inc. of WA OTC Western US Thrift 5,634 104 09-30 11/82 24.88 1,305
IWBK Interwest Bancorp of WA OTC Western WA Div. 2,091 39 09-30 / 25.00 392
STSA Sterling Financial Corp. of WA OTC WA,OR M.B. 1,888 41 12-31 / 20.25 154
FWWB First Savings Bancorp of WA OTC Central WA Thrift 1,154 20 03-31 11/95 22.50 263
KFBI Klamath First Bancorp of OR OTC Southern OR Thrift 994 33 09-30 10/95 17.50 174
HRZB Horizon Financial Corp. of WA (3) OTC Northwest WA Thrift 547 12 03-31 08/86 14.75 110
FMSB First Mutual SB of Bellevue WA (3) OTC Western WA M.B. 451 S 8 12-31 12/85 13.69 58
CASB Cascade Financial Corp. of WA OTC Seattle WA Thrift 435 11 06-30 09/92 14.00 60
HFWA Heritage Financial Corp of WA OTC NW Washington Thrift 323 10 06-30 01/98 12.13 118
RVSB Riverview Bancorp of WA OTC Southwest WA Thrift 273 9 03-31 10/97 13.00 80
OTFC Oregon Trail Fin. Corp. of OR OTC Baker City Thrift 263 7 03-31 10/97 14.00 66
TSBK Timberland Bancorp of WA OTC Grays Harbor Thrift 261 5 06-30 01/98 14.63 97
FBNW FirstBank Corp of Clarkston WA OTC West. WA/East ID Thrift 184 5 03-31 07/97 17.75 35
EFBC Empire Federal Bancorp of MT OTC Southern MT Thrift 111 3 12-31 01/97 13.25 33
South-East Companies
--------------------
BNKU Bank United Corp. of TX OTC TX,AZ Thrift 13,109 71 09-30 08/96 38.25 1,209
FFCH First Fin. Holdings Inc. of SC OTC Charleston SC Div. 1,858 34 09-30 11/83 19.88 271
FLFC First Liberty Fin. Corp. of GA OTC Georgia M.B. 1,355 31 09-30 12/83 19.25 257
EBSI Eagle Bancshares of Tucker GA OTC Atlanta GA Thrift 1,149 14 03-31 04/86 21.50 125
HFNC HFNC Financial Corp. of NC OTC Charlotte NC Thrift 979 10 06-30 12/95 11.75 202
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
South-East Companies (continued)
--------------------------------
CNIT Cenit Bancorp of Norfolk VA OTC Southeastern VA Thrift 734 19 12-31 08/92 21.25 106
CFCP Coastal Fin. Corp. of SC OTC South Carolina Thrift 583 9 09-30 09/90 19.00 119
FFBH First Fed. Bancshares of AR OTC Northern AR Thrift 570 13 12-31 05/96 22.00 107
FSPT FirstSpartan Fin. Corp. of SC OTC Northwestern SC Thrift 503 7 06-30 07/97 36.63 156
TSH Teche Holding Company of LA AMEX Southern LA Thrift 407 9 09-30 04/95 17.00 58
PFSL Pocahontas Bancorp of AR OTC Northeast AR Thrift 401 6 09-30 04/98 8.56 57
COOP Cooperative Bancshares of NC OTC Eastern NC Thrift 381 16 12-31 08/91 15.00 45
FSTC First Citizens Corp of GA OTC Western GA M.B. 352 D 9 03-31 03/86 29.50 82
CAVB Cavalry Bancorp of TN OTC Murfreesburg Thrift 351 0 Sept 03/98 20.00 151
SBAN SouthBanc Shares Inc. of SC OTC Northwest SC Thrift 335 P 6 09-30 04/98 17.63 76
HBSC Heritage Bancorp, Inc of SC OTC Laurens Thrift 312 P 4 Sept 04/98 17.50 81
UFRM United FSB of Rocky Mount NC OTC Eastern NC M.B. 306 13 12-31 07/80 17.75 58
SOPN First Svgs Bancorp of NC OTC Central NC Thrift 300 5 06-30 01/94 24.00 89
ANA Acadiana Bancshares, Inc of LA AMEX Southern LA Thrift 294 5 12-31 07/96 20.25 51
CFTP Community Fed. Bancorp of MS OTC Northeast MS Thrift 254 2 09-30 03/96 16.75 74
FLAG Flag Financial Corp of GA OTC Western GA M.B. 248 D 4 12-31 12/86 14.00 72
HCBB HCB Bancshares of Camden AR OTC Southern AR Thrift 222 7 06-30 05/97 13.00 34
SSFC South Street Fin. Corp. of NC (3) OTC South Central NC Thrift 217 2 09-30 10/96 9.00 42
ESX Essex Bancorp of Norfolk VA AMEX VA,NC M.B. 193 4 12-31 07/90 2.69 3
FTF Texarkana Fst. Fin. Corp of AR AMEX Southwest AR Thrift 185 5 09-30 07/95 26.13 45
CFFC Community Fin. Corp. of VA OTC Central VA Thrift 184 4 03-31 03/88 13.00 33
FFDB FirstFed Bancorp, Inc. of AL OTC Central AL Thrift 181 8 03-31 11/91 12.00 29
GSFC Green Street Fin. Corp. of NC OTC Southern NC Thrift 178 3 09-30 04/96 13.50 55
FGHC First Georgia Hold. Corp of GA OTC Southeastern GA Thrift 175 7 09-30 02/87 11.00 53
GBNK Gaston Fed Bncp MHC of NC(47.0 OTC Southwest NC Thrift 171 P 4 9-30 04/98 12.50 56
SZB SouthFirst Bancshares of AL AMEX Central AL Thrift 162 2 09-30 02/95 17.38 17
BFSB Bedford Bancshares, Inc. of VA OTC Southern VA Thrift 153 3 09-30 08/94 13.38 31
HBS Haywood Bancshares, Inc. of NC (3) AMEX Northwest NC Thrift 152 4 12-31 12/87 20.25 25
CCFH CCF Holding Company of GA OTC Atlanta GA Thrift 143 5 12-31 07/95 20.50 18
PDB Piedmont Bancorp, Inc. of NC AMEX Central NC Thrift 133 1 06-30 12/95 9.88 27
GSLA GS Financial Corp. of LA OTC New Orleans LA Thrift 129 3 12-31 04/97 13.38 44
CFNC Carolina Fincorp of NC (3) OTC Southcentral NC Thrift 118 4 06-30 11/96 10.13 19
SSM Stone Street Bancorp of NC AMEX Central NC Thrift 111 2 12-31 04/96 16.88 31
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
South-East Companies (continued)
--------------------------------
TWIN Twin City Bancorp, Inc. of TN OTC Northeast TN Thrift 110 3 12-31 01/95 13.19 16
SRN Southern Banc Company of AL AMEX Northeast AL Thrift 106 4 06-30 10/95 14.63 18
CENB Century Bancorp, Inc. of NC OTC Charlotte NC Thrift 104 1 06-30 12/96 13.63 17
UTBI United Tenn. Bancshares of TN OTC Eastern TN Thrift 75 2 12-31 01/98 12.13 18
SCBS Southern Commun. Bncshrs of AL OTC NorthCentral AL Thrift 72 1 09-30 12/96 16.00 18
HSTD Homestead Bancorp, Inc. of LA OTC Tangipahoa Paris Thrift 71 P 2 12-31 07/98 8.44 12
PEDE Great Pee Dee Bancorp of SC OTC Northeast SC Thrift 69 1 06-30 12/97 11.50 25
SSB Scotland Bancorp, Inc. of NC AMEX S. Central NC Thrift 61 2 09-30 04/96 9.13 17
SCCB S. Carolina Comm. Bnshrs of SC OTC Central SC Thrift 46 3 06-30 07/94 22.00 13
MBSP Mitchell Bancorp, Inc. of NC OTC Western NC Thrift 37 1 06-30 07/96 17.13 16
South-West Companies
--------------------
CBSA Coastal Bancorp of Houston TX OTC Houston TX M.B. 2,966 37 12-31 / 20.25 153
FBHC Fort Bend Holding Corp. of TX OTC Eastcentral TX M.B. 317 6 03-31 06/93 20.75 38
JXVL Jacksonville Bancorp of TX OTC East Central TX Thrift 237 6 09-30 04/96 17.13 41
ETFS East Texas Fin. Serv. of TX OTC Northeast TX Thrift 121 2 09-30 01/95 14.25 22
GUPB GFSB Bancorp, Inc of Gallup NM OTC Northwest NM Thrift 118 1 06-30 06/95 13.88 17
AABC Access Anytime Bancorp of NM OTC Eastern NM Thrift 114 3 12-31 08/86 9.75 12
Western Companies (Excl CA)
---------------------------
WSTR WesterFed Fin. Corp. of MT OTC Montana Thrift 1,023 36 06-30 01/94 18.63 104
UBMT United Fin. Corp. of MT OTC Central MT Thrift 96 D 4 12-31 09/86 24.75 42
HCBC High Country Bancorp of CO OTC Salida Thrift 92 2 12-31 12/97 12.25 16
TRIC Tri-County Bancorp of WY OTC Southeastern WY Thrift 89 2 12-31 09/93 12.00 14
CRZY Crazy Woman Creek Bncorp of WY OTC Northeast WY Thrift 62 1 09-30 03/96 14.63 14
Other Areas
-----------
NOTES: (1) Or most recent date available (M=March, S=September, D=December,
J=June, E=Estimated, and P=Pro Forma)
(2) Operating strategies are: Thrift=Traditional Thrift, M.B.=Mortgage
Banker, R.E.=Real Estate Developer, Div.=Diversified, and
Ret.=Retail Banking.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
September 3, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
(3) FDIC savings bank.
Source: Corporate offering circulars, SNL Securities Quarterly Thrift Report,
and financial reports of publicly Traded Thrifts.
Date of Last Update: 09/03/98
EXHIBIT III-2
MHC Peer Institutions
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-2
Market Pricing Comparatives
Prices As of August 21, 1998
Market Per Share Data
Capitalization --------------- Pricing Ratios(3) Dividends(4)
--------------- Core Book --------------------------------------- --------------------
Price/ Market 12-Mth Value/ Amount/ Payout
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE Share Yield Ratio(5)
- --------------------- ------ ------- ------- ------- ------- ------- ------- ------- -------- ------- ------ -----
($) ($Mil) ($) ($) (X) (%) (%) (%) (x) ($) (%) (%)
SAIF-Insured Thrifts 17.95 150.82 0.90 13.31 18.72 142.07 18.05 145.73 19.54 0.32 1.78 30.66
Special Selection Grouping(8) 17.28 90.04 0.57 9.32 25.06 190.18 24.19 191.64 26.77 0.31 1.62 13.49
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
ALLB Alliance Bank MHC of PA (19.9) 21.25 13.81 0.62 8.93 NM 237.96 25.50 237.96 NM 0.36 1.69 11.53
BCSB BCSB Bankcorp MHC of MD (38.6) 11.38 26.87 0.36 7.28 NM 156.32 25.44 156.32 NM 0.00 0.00 0.00
BRKL Brookline Bncp MHC of MA(47.0) 12.75 174.36 0.47 9.33 27.13 136.66 45.39 136.66 27.13 0.20 1.57 20.00
CMSV Commty. Svgs, MHC of FL (48.5)(7) 28.50 70.40 0.95 16.11 27.67 176.91 19.11 176.91 30.00 0.90 3.16 NM
FFFL Fidelity Bcsh MHC of FL (47.9) 26.50 86.39 0.92 13.01 24.77 203.69 13.65 209.98 28.80 1.00 3.77 NM
SKBO First Carnegie MHC of PA(45.0) 13.25 13.71 0.50 10.86 NM 122.01 20.57 122.01 26.50 0.30 2.26 27.00
FFSX First FSB MHC Sxld of IA(46.3) 32.50 42.67 1.17 14.50 28.02 224.14 16.16 283.10 27.78 0.48 1.48 18.97
GBNK Gaston Fed Bncp MHC of NC(47.0 12.50 26.41 0.43 8.56 29.07 146.03 32.83 146.03 29.07 0.20 1.60 21.85
HARS Harris Fin. MHC of PA (24.9) 17.75 149.85 0.45 5.41 NM 328.10 26.67 NM NM 0.22 1.24 12.15
JXSB Jcksnville SB,MHC of IL (45.6) 16.75 14.56 0.33 9.23 NM 181.47 18.84 181.47 NM 0.30 1.79 NM
LFED Leeds Fed Bksr MHC of MD (36.3 17.50 32.95 0.66 9.52 26.52 183.82 30.33 183.82 26.52 0.56 3.20 NM
LIBB Liberty Bancorp MHC of NJ (47) 10.25 18.80 0.69 8.30 14.86 123.49 16.61 123.49 14.86 0.00 0.00 0.00
NBCP Niagara Bancorp of NY MHC(45.4 11.38 153.65 0.46 8.31 23.71 136.94 26.12 136.94 24.74 0.00 0.00 0.00
NWSB Northwest Bcrp MHC of PA (30.8 12.75 184.08 0.44 4.55 28.98 280.22 24.79 313.27 28.98 0.16 1.25 11.21
PBHC Pathfinder BC MHC of NY (45.2) 15.00 19.19 0.50 8.15 24.19 184.05 21.65 217.08 30.00 0.20 1.33 18.07
PBCT Peoples Bank, MHC of CT (41.2) 27.00 746.09 0.80 13.17 18.12 205.01 18.92 239.36 NM 0.84 3.11 NM
PHSB Ppls Home SB, MHC of PA (45.0) 16.25 20.18 0.56 10.33 25.79 157.31 20.08 157.31 29.02 0.28 1.72 22.50
PULB Pulaski Bk,SB MHC of MO (29.8)(7) 28.16 17.57 0.78 11.70 29.64 240.68 32.30 240.68 NM 1.10 3.91 NM
PLSK Pulaski SB, MHC of NJ (47.0) 14.88 14.73 0.55 10.44 27.05 142.53 16.44 142.53 27.05 0.30 2.02 25.62
SBFL SB Fngr Lakes MHC of NY (33.1) 16.00 18.88 0.22 6.10 NM 262.30 22.77 262.30 NM 0.24 1.50 NM
WAYN Wayne Svgs Bks MHC of OH (48.2 22.25 26.63 0.68 9.83 NM 226.35 21.29 226.35 NM 0.62 2.79 NM
WCFB Wbstr Cty FSB MHC of IA (45.6) 17.63 16.96 0.64 10.67 27.55 165.23 39.68 165.23 27.55 0.00 0.00 0.00
Financial Characteristics(6)
----------------------------------------------------------
Total Equity/ NPAs/ Reported Core
Financial Institution Assets Assets Assets ROA ROE ROA ROE
- --------------------- -------- ------- ------- ------- ------- ------- -------
($Mil) (%) (%) (%) (%) (%) (%)
SAIF-Insured Thrifts 1,067 14.03 0.59 0.93 7.90 0.88 7.43
Special Selection Grouping(8) 1,031 13.86 0.52 0.93 7.38 0.86 6.66
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
ALLB Alliance Bank MHC of PA (19.9) 273 10.72 1.06 0.80 7.09 0.80 7.09
BCSB BCSB Bankcorp MHC of MD (38.6) 274 16.27 NA 0.80 4.95 0.80 4.95
BRKL Brookline Bncp MHC of MA(47.0) 817 33.21 0.60 1.92 8.85 1.92 8.85
CMSV Commty. Svgs, MHC of FL (48.5)(7) 761 10.80 0.27 0.74 6.58 0.68 6.07
FFFL Fidelity Bcsh MHC of FL (47.9) 1,321 6.70 0.27 0.66 8.52 0.57 7.32
SKBO First Carnegie MHC of PA(45.0) 148 16.86 0.59 0.65 4.26 0.77 5.08
FFSX First FSB MHC Sxld of IA(46.3) 571 7.21 0.46 0.68 8.31 0.69 8.38
GBNK Gaston Fed Bncp MHC of NC(47.0 171 22.48 0.50 1.13 5.02 1.13 5.02
HARS Harris Fin. MHC of PA (24.9) 2,260 8.13 0.66 0.88 10.96 0.72 8.96
JXSB Jcksnville SB,MHC of IL (45.6) 170 10.38 0.68 0.59 5.64 0.38 3.65
LFED Leeds Fed Bksr MHC of MD (36.3 299 16.50 0.03 1.18 7.20 1.18 7.20
LIBB Liberty Bancorp MHC of NJ (47) 241 13.45 0.35 1.12 8.31 1.12 8.31
NBCP Niagara Bancorp of NY MHC(45.4 1,296 19.08 0.29 1.10 5.78 1.06 5.54
NWSB Northwest Bcrp MHC of PA (30.8 2,410 8.85 0.50 0.95 10.14 0.95 10.14
PBHC Pathfinder BC MHC of NY (45.2) 196 11.76 1.30 0.91 7.74 0.73 6.24
PBCT Peoples Bank, MHC of CT (41.2) 9,149 9.23 0.70 1.18 13.45 0.63 7.22
PHSB Ppls Home SB, MHC of PA (45.0) 223 12.76 0.32 0.81 7.30 0.72 6.49
PULB Pulaski Bk,SB MHC of MO (29.8)(7) 184 13.42 NA 1.11 8.38 0.91 6.88
PLSK Pulaski SB, MHC of NJ (47.0) 191 11.54 0.63 0.63 5.86 0.63 5.86
SBFL SB Fngr Lakes MHC of NY (33.1) 251 8.68 0.32 0.40 4.39 0.34 3.72
WAYN Wayne Svgs Bks MHC of OH (48.2 260 9.41 0.49 0.72 7.72 0.66 7.10
WCFB Wbstr Cty FSB MHC of IA (45.6) 94 24.02 0.07 1.43 6.09 1.43 6.09
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month data,
adjusted to omit non-operating items (including the SAIF assessment) on a
tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB =
Price to tangible book value; and P/CORE = Price to estimated core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend declared.
(5) Indicated dividend as a percent of trailing twelve month estimated core
earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month earnings and average equity and assets balances.
(7) Excludes from averages those companies the subject of actual or rumored
acquisition activities or unusual operating characteristics.
(8) Includes MHC Institutions;
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been
obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
EXHIBIT IV-1
Stock Prices:
As of August 21, 1998
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
Market Averages. SAIF-Insured Thrifts(no MHC)
- ---------------------------------------------
SAIF-Insured Thrifts(285) 18.00 7,466 157.3 23.41 15.80 18.31 -1.48 11.47 -8.10
NYSE Traded Companies(8) 30.75 39,352 1,417.5 44.71 28.28 31.36 -3.64 -4.21 -19.20
AMEX Traded Companies(22) 15.76 3,354 50.1 20.91 14.70 15.91 -0.60 2.25 -10.65
NASDAQ Listed OTC Companies(255) 17.88 7,013 134.4 23.08 15.58 18.19 -1.50 12.72 -7.57
California Companies(18) 22.80 14,594 519.6 30.67 20.34 23.07 -1.57 2.96 -11.40
Florida Companies(6) 18.24 25,809 390.4 24.64 16.03 18.35 -0.92 4.92 -18.66
Mid-Atlantic Companies(57) 18.12 10,967 183.8 23.77 15.80 18.35 -1.07 11.31 -8.91
Mid-West Companies(131) 17.67 5,318 110.2 22.64 15.32 17.91 -1.04 12.61 -7.70
New England Companies(7) 18.70 8,374 203.7 25.13 17.54 18.93 -1.93 4.37 -12.91
North-West Companies(11) 17.81 11,557 245.1 22.76 16.70 18.43 -3.35 12.03 0.22
South-East Companies(44) 17.56 4,475 96.0 23.02 15.25 17.98 -2.08 13.81 -5.44
South-West Companies(6) 15.05 2,788 49.0 19.23 13.29 15.36 -1.80 14.87 -12.40
Western Companies (Excl CA)(5) 16.45 2,142 38.0 22.10 16.28 17.73 -6.79 3.70 -17.59
Thrift Strategy(240) 17.45 5,136 95.8 22.57 15.41 17.73 -1.32 11.20 -7.78
Mortgage Banker Strategy(27) 22.73 21,047 564.1 30.14 19.43 22.98 -2.00 14.81 -12.29
Real Estate Strategy(8) 19.43 8,482 136.7 24.59 15.15 19.98 -2.85 22.83 6.28
Diversified Strategy(7) 20.49 46,406 1,067.9 29.52 19.02 21.34 -3.85 -6.37 -20.65
Retail Banking Strategy(3) 17.63 4,499 89.4 23.42 14.69 18.00 -1.46 17.17 -10.66
Companies Issuing Dividends(229) 18.54 7,245 166.0 24.13 16.19 18.85 -1.43 10.49 -9.61
Companies Without Dividends(56) 15.85 8,342 122.9 20.55 14.26 16.12 -1.67 15.43 -1.96
Equity/Assets less than 6%(21) 18.34 18,952 360.2 24.91 15.27 18.86 -2.91 16.25 -9.03
Equity/Assets 6-12%(123) 19.67 7,881 204.5 25.51 16.67 20.02 -1.52 15.02 -9.69
Equity/Assets greater than 12%(141) 16.52 5,417 86.8 21.38 15.13 16.75 -1.23 7.72 -6.58
Converted Last 3 Mths (no MHC)(6) 10.93 14,346 173.7 12.49 10.01 11.10 -1.15 9.27 19.66
Actively Traded Companies(30) 24.73 27,206 733.3 32.97 21.92 24.98 -1.58 12.17 -14.13
Market Value Below $20 Million(56) 13.80 1,118 14.7 18.10 12.48 13.89 -0.41 4.36 -11.32
Holding Company Structure(257) 18.32 7,338 160.1 23.86 16.13 18.64 -1.52 11.00 -8.16
Assets Over $1 Billion(58) 22.40 25,006 578.3 30.02 19.90 22.99 -2.74 10.04 -10.53
Assets $500 Million-$1 Billion(37) 19.72 5,935 106.8 24.99 16.74 20.11 -1.87 13.25 -8.04
Assets $250-$500 Million(69) 18.56 3,601 61.1 23.64 15.88 18.78 -1.27 17.99 -3.84
Assets less than $250 Million(121) 15.15 1,738 25.7 19.72 13.56 15.33 -0.88 8.11 -9.25
Goodwill Companies(113) 19.46 13,646 275.0 25.55 16.82 19.85 -1.67 13.98 -8.79
Non-Goodwill Companies(171) 17.13 3,458 82.4 22.13 15.19 17.38 -1.34 9.94 -7.70
Acquirors of FSLIC Cases(8) 32.96 30,789 1,355.4 43.56 30.12 33.23 -1.65 9.44 -10.61
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
Market Averages. SAIF-Insured Thrifts(no MHC
- --------------------------------------------
SAIF-Insured Thrifts(285) 0.97 0.92 13.58 13.17 120.52
NYSE Traded Companies(8) 2.16 1.77 18.29 17.88 248.85
AMEX Traded Companies(22) 0.82 0.78 14.00 13.68 111.21
NASDAQ Listed OTC Companies(255) 0.95 0.91 13.42 13.01 118.05
California Companies(18) 1.46 1.37 16.56 15.82 222.74
Florida Companies(6) 0.96 0.57 11.07 10.57 139.88
Mid-Atlantic Companies(57) 1.00 0.97 13.11 12.39 134.57
Mid-West Companies(131) 0.92 0.88 13.75 13.47 108.87
New England Companies(7) 1.16 1.10 13.11 12.62 178.53
North-West Companies(11) 0.95 0.86 12.77 12.37 95.97
South-East Companies(44) 0.87 0.83 13.09 12.90 94.68
South-West Companies(6) 1.16 1.14 12.49 12.09 152.16
Western Companies (Excl CA)(5) 0.84 0.85 15.03 14.26 90.36
Thrift Strategy(240) 0.94 0.90 13.76 13.41 111.82
Mortgage Banker Strategy(27) 1.23 1.18 13.20 12.18 184.83
Real Estate Strategy(8) 1.29 1.19 11.69 11.29 162.39
Diversified Strategy(7) 1.17 0.76 10.23 10.01 126.08
Retail Banking Strategy(3) 0.40 0.26 13.88 13.36 205.51
Companies Issuing Dividends(229) 1.02 0.95 13.74 13.28 120.25
Companies Without Dividends(56) 0.78 0.80 12.91 12.74 121.62
Equity/Assets less than 6%(21) 1.08 1.14 10.19 9.63 207.51
Equity/Assets 6-12%(123) 1.13 1.03 13.10 12.40 152.18
Equity/Assets greater than 12%(141) 0.82 0.79 14.49 14.36 80.48
Converted Last 3 Mths (no MHC)(6) 0.47 0.49 11.62 11.62 50.48
Actively Traded Companies(30) 1.50 1.56 14.47 13.83 179.72
Market Value Below $20 Million(56) 0.73 0.66 12.71 12.66 91.06
Holding Company Structure(257) 0.99 0.93 13.80 13.39 121.28
Assets Over $1 Billion(58) 1.35 1.28 13.85 12.75 183.55
Assets $500 Million-$1 Billion(37) 1.03 0.96 13.33 12.84 136.62
Assets $250-$500 Million(69) 0.99 0.95 13.98 13.63 121.15
Assets less than $250 Million(121) 0.77 0.72 13.30 13.23 85.94
Goodwill Companies(113) 1.10 1.02 13.31 12.28 146.84
Non-Goodwill Companies(171) 0.90 0.86 13.76 13.76 104.24
Acquirors of FSLIC Cases(8) 2.34 2.25 20.42 19.63 256.95
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1996 or 1997.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and
assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public
(non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
Market Averages. BIF-Insured Thrifts(no MHC)
- --------------------------------------------
BIF-Insured Thrifts(56) 20.19 12,179 276.7 26.37 17.32 20.73 -2.32 14.71 -10.86
NYSE Traded Companies(5) 30.45 50,883 1,431.1 38.25 26.93 30.89 -0.83 26.81 -1.99
AMEX Traded Companies(5) 17.55 2,424 44.7 23.20 14.89 17.85 -1.75 16.49 -8.43
NASDAQ Listed OTC Companies(46) 19.28 8,733 166.9 25.33 16.47 19.87 -2.56 13.06 -12.21
California Companies(1) 19.50 7,697 150.1 24.00 17.38 19.75 -1.27 9.86 1.30
Mid-Atlantic Companies(20) 22.08 21,084 522.5 28.07 18.94 22.48 -1.27 18.70 -9.63
New England Companies(30) 20.04 7,091 135.9 26.29 16.88 20.73 -3.06 18.12 -8.57
North-West Companies(2) 14.22 5,866 84.3 19.71 14.17 14.94 -4.84 -1.34 -21.45
South-East Companies(3) 13.13 2,611 28.9 20.96 12.42 13.31 -1.52 -29.15 -35.96
Thrift Strategy(44) 20.44 8,283 194.6 26.54 17.65 20.98 -2.24 14.61 -10.08
Mortgage Banker Strategy(6) 20.85 28,408 686.5 28.00 16.91 21.29 -2.11 16.63 -17.11
Real Estate Strategy(2) 15.22 7,801 118.3 19.19 13.07 15.25 0.25 16.12 -1.79
Diversified Strategy(4) 18.71 35,884 684.4 25.50 16.46 19.83 -5.46 11.25 -15.06
Companies Issuing Dividends(45) 20.53 14,118 324.0 27.05 17.61 21.10 -2.46 12.56 -13.03
Companies Without Dividends(11) 18.75 4,035 78.2 23.50 16.10 19.20 -1.69 23.74 -1.76
Equity/Assets less than 6%(4) 19.13 32,941 828.3 26.27 15.13 19.66 -3.23 22.49 -14.79
Equity/Assets 6-12%(34) 21.96 10,280 254.2 28.11 18.40 22.71 -3.06 15.98 -10.75
Equity/Assets greater than 12%(18) 17.47 10,730 191.7 23.48 16.02 17.67 -0.88 10.86 -10.17
Converted Last 3 Mths (no MHC)(1) 7.75 3,101 24.0 11.27 6.80 7.88 -1.65 13.97 -31.23
Actively Traded Companies(15) 25.86 19,948 480.8 33.43 21.81 26.95 -3.84 16.75 -11.15
Market Value Below $20 Million(4) 17.57 1,224 18.6 23.60 14.95 18.22 -2.52 2.48 -23.80
Holding Company Structure(43) 20.24 9,878 201.6 26.18 17.43 20.78 -2.14 14.76 -9.48
Assets Over $1 Billion(18) 26.38 31,772 775.1 33.54 22.30 27.23 -2.96 17.59 -8.18
Assets $500 Million-$1 Billion(10) 21.12 5,784 101.8 27.17 17.98 22.02 -3.90 12.63 -12.22
Assets $250-$500 Million(12) 16.80 3,923 60.7 22.40 14.91 17.10 -1.80 17.05 -13.64
Assets less than $250 Million(16) 16.07 1,977 27.8 21.77 13.82 16.31 -1.26 11.11 -10.78
Goodwill Companies(29) 20.76 18,989 431.2 27.01 17.41 21.32 -2.23 19.72 -10.67
Non-Goodwill Companies(27) 19.61 5,369 122.2 25.73 17.23 20.15 -2.40 9.70 -11.06
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
Market Averages. BIF-Insured Thrifts(no MHC)
- --------------------------------------------
BIF-Insured Thrifts(56) 1.24 1.16 13.29 12.84 126.55
NYSE Traded Companies(5) 1.49 1.46 20.77 18.92 137.03
AMEX Traded Companies(5) 1.18 1.02 12.88 12.47 114.17
NASDAQ Listed OTC Companies(46) 1.22 1.15 12.44 12.16 126.78
California Companies(1) 1.70 1.70 13.37 13.33 131.35
Mid-Atlantic Companies(20) 1.08 1.05 14.45 13.83 124.74
New England Companies(30) 1.40 1.27 12.72 12.33 136.35
North-West Companies(2) 1.07 1.05 9.21 9.21 89.69
South-East Companies(3) 0.88 0.91 13.11 12.92 76.72
Thrift Strategy(44) 1.23 1.15 14.08 13.69 125.44
Mortgage Banker Strategy(6) 1.33 1.23 11.66 10.95 147.02
Real Estate Strategy(2) 1.25 1.27 9.29 9.27 89.24
Diversified Strategy(4) 1.19 1.13 8.31 7.37 125.68
Companies Issuing Dividends(45) 1.24 1.15 13.08 12.54 129.86
Companies Without Dividends(11) 1.26 1.22 14.16 14.11 112.67
Equity/Assets less than 6%(4) 1.32 0.96 8.38 7.77 168.97
Equity/Assets 6-12%(34) 1.48 1.40 12.81 12.24 148.69
Equity/Assets greater than 12%(18) 0.83 0.82 15.16 14.97 80.23
Converted Last 3 Mths (no MHC)(1) 0.37 0.37 9.41 9.41 47.49
Actively Traded Companies(15) 1.80 1.61 15.97 15.31 166.37
Market Value Below $20 Million(4) 1.14 1.10 14.75 14.70 159.74
Holding Company Structure(43) 1.21 1.14 13.59 13.29 120.59
Assets Over $1 Billion(18) 1.47 1.42 15.06 14.07 142.17
Assets $500 Million-$1 Billion(10) 1.54 1.31 13.51 13.26 154.62
Assets $250-$500 Million(12) 1.10 1.05 12.15 11.89 112.27
Assets less than $250 Million(16) 0.97 0.93 12.25 12.11 107.61
Goodwill Companies(29) 1.29 1.18 13.16 12.27 140.62
Non-Goodwill Companies(27) 1.19 1.15 13.41 13.41 112.49
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1996 or 1997.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and
assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public
(non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(19) 17.18 9,398 51.9 24.29 14.81 17.19 -0.61 18.21 -7.55
BIF-Insured Thrifts(3) 17.79 32,239 306.3 28.09 16.40 17.90 -0.71 18.65 -13.38
NASDAQ Listed OTC Companies(22) 17.28 12,824 90.0 24.86 15.05 17.30 -0.62 18.27 -8.43
Florida Companies(2) 26.50 6,802 86.4 35.38 24.88 25.50 3.92 8.16 -18.46
Mid-Atlantic Companies(12) 14.80 11,884 55.6 22.35 12.64 14.98 -1.14 18.32 -11.03
Mid-West Companies(5) 22.28 2,337 25.2 29.13 18.03 21.72 2.04 21.68 -10.33
New England Companies(2) 19.88 46,613 460.2 29.56 19.88 19.91 -0.11 12.84 -0.72
South-East Companies(1) 12.50 4,497 26.4 18.06 12.50 14.00 -10.71 25.00 25.00
Thrift Strategy(20) 16.71 8,799 50.3 23.79 14.55 16.73 -0.68 17.32 -7.16
Mortgage Banker Strategy(1) 17.75 33,965 149.8 27.88 12.00 17.75 0.00 55.43 -10.71
Diversified Strategy(1) 27.00 64,130 746.1 41.13 27.00 27.06 -0.22 -1.82 -28.95
Companies Issuing Dividends(18) 18.43 13,412 99.0 27.12 15.74 18.45 -0.72 20.91 -11.68
Companies Without Dividends(4) 12.66 10,472 54.1 15.83 12.29 12.69 -0.23 7.71 4.56
Equity/Assets 6-12%(12) 20.24 15,523 119.7 30.12 16.46 20.08 -0.31 25.98 -16.05
Equity/Assets >12%(10) 13.65 9,525 53.8 18.44 13.32 13.90 -1.76 8.85 0.88
Holding Company Structure(4) 14.72 9,744 54.6 21.21 12.40 14.94 -0.99 21.85 -6.07
Assets Over $1 Billion(5) 19.08 36,299 264.0 27.88 17.13 18.94 0.33 18.42 -10.82
Assets $500 Million-$1 Billion(3) 22.63 15,968 108.5 28.49 18.88 21.38 4.17 28.75 14.93
Assets $250-$500 Million(5) 17.68 4,126 23.8 25.98 14.32 17.98 -1.59 27.62 -10.56
Assets less than $250 Million(9) 14.56 2,802 18.1 21.38 13.25 14.83 -1.81 9.71 -11.45
Goodwill Companies(7) 20.41 23,361 179.3 28.59 17.33 19.97 1.30 23.72 -10.96
Non-Goodwill Companies(15) 15.59 7,150 42.0 22.85 13.82 15.86 -1.66 15.33 -7.07
MHC Institutions(22) 17.28 12,824 90.0 24.86 15.05 17.30 -0.62 18.27 -8.43
MHC Converted Last 3 Months(2) 10.82 5,009 22.8 12.16 10.57 10.82 0.07 8.15 8.15
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(19) 0.60 0.57 9.23 8.97 80.64
BIF-Insured Thrifts(3) 0.86 0.59 9.88 8.83 85.18
NASDAQ Listed OTC Companies(22) 0.64 0.57 9.32 8.95 81.32
Florida Companies(2) 1.07 0.92 13.01 12.62 194.16
Mid-Atlantic Companies(12) 0.52 0.50 8.18 7.99 65.37
Mid-West Companies(5) 0.76 0.71 11.06 10.30 109.74
New England Companies(2) 0.98 0.64 11.25 10.31 85.38
South-East Companies(1) 0.43 0.43 8.56 8.56 38.07
Thrift Strategy(20) 0.60 0.57 9.33 9.04 78.73
Mortgage Banker Strategy(1) 0.55 0.45 5.41 4.86 66.55
Diversified Strategy(1) 1.49 0.80 13.17 11.28 142.67
Companies Issuing Dividends(18) 0.66 0.58 9.49 9.02 89.50
Companies Without Dividends(4) 0.54 0.54 8.64 8.64 48.61
Equity/Assets 6-12%(12) 0.73 0.61 9.39 8.70 105.70
Equity/Assets greater 12%(10) 0.53 0.53 9.24 9.24 51.52
Holding Company Structure(4) 0.63 0.58 8.65 8.34 69.76
Assets Over $1 Billion(5) 0.81 0.61 8.89 8.23 99.68
Assets $500 Million-$1 Billion(3) 0.81 0.82 11.92 10.41 114.61
Assets $250-$500 Million(5) 0.53 0.51 8.33 8.33 72.10
Assets less than $250 Million(9) 0.56 0.53 9.57 9.41 67.28
Goodwill Companies(7) 0.81 0.66 9.44 8.36 110.00
Non-Goodwill Companies(15) 0.55 0.52 9.26 9.26 65.88
MHC Institutions(22) 0.64 0.57 9.32 8.95 81.32
MHC Converted Last 3 Months(2) 0.52 0.52 7.79 7.79 53.22
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1996 or 1997.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and
assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public
(non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NYSE Traded Companies
- ---------------------
AHM Ahmanson and Co. H.F. of CA(8) 58.50 112,748 6,595.8 82.81 50.13 59.69 -1.99 14.41 -12.61
BYS Bay State Bancorp of MA* 24.25 2,535 61.5 32.63 23.38 23.63 2.62 21.25 21.25
CFB Commercial Federal Corp. of NE 25.88 42,056 1,088.4 38.19 25.13 26.38 -1.90 -4.15 -27.22
DME Dime Bancorp, Inc. of NY* 26.38 113,533 2,995.0 32.69 18.63 26.25 0.50 37.47 -12.79
DSL Downey Financial Corp. of CA 27.13 28,105 762.5 35.00 20.48 30.63 -11.43 30.24 0.18
FED FirstFed Fin. Corp. of CA 18.50 21,215 392.5 26.94 15.94 20.31 -8.91 9.60 -4.54
GSB Golden State Bancorp of CA(8) 20.56 55,485 1,140.8 41.81 20.56 22.31 -7.84 -27.55 -45.09
GDW Golden West Fin. Corp. of CA 85.00 57,591 4,895.2 114.25 80.38 82.50 3.03 4.62 -13.10
GPT GreenPoint Fin. Corp. of NY* 32.88 83,383 2,741.6 42.63 29.34 33.81 -2.75 3.46 -9.37
JSB JSB Financial, Inc. of NY* 49.44 9,833 486.1 59.69 44.50 51.25 -3.53 10.95 -1.24
OCN Ocwen Financial Corp. of FL 18.25 60,772 1,109.1 30.38 18.00 18.38 -0.71 -15.86 -28.26
SIB Staten Island Bancorp of NY* 19.31 45,130 871.5 23.63 18.81 19.50 -0.97 60.92 -7.78
WES Westcorp Inc. of Orange CA 9.75 26,374 257.1 23.50 9.75 9.94 -1.91 -49.69 -42.24
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 20.25 2,505 50.7 25.63 20.25 22.00 -7.95 -5.81 -13.39
ANE Alliance Bncp of New Eng of CT* 12.25 2,493 30.5 16.08 11.00 12.50 -2.00 4.97 11.36
BKC American Bank of Waterbury CT* 23.63 4,687 110.8 32.56 17.88 23.88 -1.05 26.03 -3.08
BFD BostonFed Bancorp of MA 19.25 5,393 103.8 24.88 18.50 18.75 2.67 -2.23 -12.02
CNY Carver Bancorp, Inc. of NY 11.63 2,314 26.9 17.13 11.63 12.13 -4.12 -10.54 -28.43
CBK Citizens First Fin.Corp. of IL 16.25 2,526 41.0 22.38 16.00 17.13 -5.14 -2.29 -19.75
EFC EFC Bancorp Inc of IL 11.25 7,491 84.3 14.94 11.25 11.38 -1.14 12.50 12.50
EBI Equality Bancorp, Inc. of MO 13.88 2,518 34.9 16.00 12.50 13.31 4.28 38.80 -4.28
ESX Essex Bancorp of Norfolk VA(8) 2.69 1,059 2.8 7.94 1.75 2.88 -6.60 43.09 -31.73
FCB Falmouth Bancorp, Inc. of MA* 18.00 1,455 26.2 23.88 16.88 18.50 -2.70 5.08 -12.20
FAB FirstFed America Bancorp of MA 17.00 8,272 140.6 23.25 16.75 16.88 0.71 -10.81 -22.30
GAF GA Financial Corp. of PA 16.88 7,220 121.9 22.25 15.13 16.13 4.65 -5.59 -10.59
HBS Haywood Bancshares, Inc. of NC* 20.25 1,250 25.3 24.00 19.00 20.50 -1.22 6.58 -10.00
KNK Kankakee Bancorp, Inc. of IL 29.88 1,380 41.2 37.75 29.00 30.88 -3.24 0.84 -20.85
KYF Kentucky First Bancorp of KY 14.00 1,240 17.4 15.88 12.38 14.25 -1.75 14.29 -6.29
NBN Northeast Bancorp of ME* 13.63 2,237 30.5 19.50 9.67 13.88 -1.80 39.79 -28.26
NEP Northeast PA Fin. Corp of PA 12.19 6,427 78.3 16.00 12.19 12.69 -3.94 21.90 21.90
PDB Piedmont Bancorp, Inc. of NC 9.88 2,751 27.2 11.63 9.50 10.00 -1.20 -9.19 -9.19
SSB Scotland Bancorp, Inc. of NC 9.13 1,914 17.5 19.25 8.13 9.00 1.44 -51.95 -8.15
SZB SouthFirst Bancshares of AL 17.38 967 16.8 22.75 16.00 17.63 -1.42 6.11 -23.60
SRN Southern Banc Company of AL 14.63 1,230 18.0 19.13 14.25 14.56 0.48 -5.61 -17.58
SSM Stone Street Bancorp of NC 16.88 1,843 31.1 22.50 16.75 16.75 0.78 -21.49 -23.93
TSH Teche Holding Company of LA 17.00 3,439 58.5 23.50 17.00 17.38 -2.19 -6.85 -25.27
FTF Texarkana Fst. Fin. Corp of AR 26.13 1,738 45.4 30.63 22.25 26.88 -2.79 16.13 4.52
THR Three Rivers Fin. Corp. of MI 17.75 825 14.6 23.50 15.63 15.75 12.70 8.36 -18.39
WSB Washington SB, FSB of MD 5.69 4,421 25.2 9.50 5.69 5.69 0.00 -17.30 -37.20
WFI Winton Financial Corp. of OH 14.13 4,014 56.7 20.63 7.88 14.94 -5.42 77.96 38.67
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN(8) 45.00 1,092 49.1 45.50 22.06 44.25 1.69 108.43 53.64
FBER 1st Bergen Bancorp of NJ 14.75 2,585 38.1 20.75 14.75 17.63 -16.34 -20.27 -22.90
AFED AFSALA Bancorp, Inc. of NY(8) 17.88 1,319 23.6 20.75 15.75 18.00 -0.67 10.03 -7.12
ALBK ALBANK Fin. Corp. of Albany NY(8) 60.00 13,222 793.3 74.63 38.00 60.31 -0.51 55.32 16.64
AMFC AMB Financial Corp. of IN 15.75 916 14.4 19.38 14.50 15.75 0.00 5.00 -0.82
ASBP ASB Financial Corp. of OH 12.75 1,635 20.8 16.75 12.31 12.50 2.00 2.00 -3.77
ABBK Abington Bancorp of MA* 16.75 3,532 59.2 22.25 14.63 17.50 -4.29 16.48 -20.24
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NYSE Traded Companies
- ---------------------
AHM Ahmanson and Co. H.F. of CA(8) 3.50 3.30 26.34 19.38 483.55
BYS Bay State Bancorp of MA* 1.05 1.05 23.66 23.66 114.26
CFB Commercial Federal Corp. of NE 1.43 1.68 14.02 12.26 202.79
DME Dime Bancorp, Inc. of NY* 1.29 1.04 11.45 9.37 193.99
DSL Downey Financial Corp. of CA 1.80 1.84 15.87 15.69 208.93
FED FirstFed Fin. Corp. of CA 1.23 1.19 10.96 10.88 191.72
GSB Golden State Bancorp of CA(8) 1.89 2.04 17.44 15.73 288.89
GDW Golden West Fin. Corp. of CA 6.48 6.50 48.88 48.88 688.81
GPT GreenPoint Fin. Corp. of NY* 1.70 1.76 15.34 8.56 158.64
JSB JSB Financial, Inc. of NY* 2.99 2.66 37.88 37.88 159.05
OCN Ocwen Financial Corp. of FL 1.39 0.27 7.36 6.98 56.29
SIB Staten Island Bancorp of NY* 0.43 0.79 15.51 15.11 59.19
WES Westcorp Inc. of Orange CA 0.63 -0.84 12.62 12.59 144.57
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 1.17 1.10 17.97 17.97 117.17
ANE Alliance Bncp of New Eng of CT* 0.87 0.51 7.91 7.72 99.21
BKC American Bank of Waterbury CT* 1.75 1.47 12.53 12.13 138.94
BFD BostonFed Bancorp of MA 1.30 1.10 15.06 14.52 191.28
CNY Carver Bancorp, Inc. of NY 0.45 0.40 15.36 14.82 189.05
CBK Citizens First Fin.Corp. of IL 0.78 0.49 15.33 15.33 110.79
EFC EFC Bancorp Inc of IL 0.56 0.56 12.42 12.42 52.24
EBI Equality Bancorp, Inc. of MO 0.49 0.03 10.26 10.26 101.49
ESX Essex Bancorp of Norfolk VA(8) -0.20 -0.19 0.03 -0.14 182.29
FCB Falmouth Bancorp, Inc. of MA* 0.68 0.54 16.19 16.19 72.26
FAB FirstFed America Bancorp of MA 0.82 0.69 15.35 15.35 154.96
GAF GA Financial Corp. of PA 1.16 1.09 15.87 15.73 113.31
HBS Haywood Bancshares, Inc. of NC* 1.76 1.76 18.06 17.49 121.60
KNK Kankakee Bancorp, Inc. of IL 2.20 2.14 27.92 23.23 289.48
KYF Kentucky First Bancorp of KY 0.79 0.78 11.24 11.24 65.97
NBN Northeast Bancorp of ME* 0.82 0.81 9.72 8.83 138.86
NEP Northeast PA Fin. Corp of PA -0.60 0.37 13.07 13.07 68.99
PDB Piedmont Bancorp, Inc. of NC 0.57 0.57 7.77 7.77 48.28
SSB Scotland Bancorp, Inc. of NC 0.50 0.50 7.91 7.91 32.02
SZB SouthFirst Bancshares of AL 0.70 0.65 16.91 16.49 167.82
SRN Southern Banc Company of AL 0.42 0.42 14.95 14.84 85.95
SSM Stone Street Bancorp of NC 0.80 0.80 16.85 16.85 60.21
TSH Teche Holding Company of LA 1.09 1.08 16.38 16.38 118.43
FTF Texarkana Fst. Fin. Corp of AR 1.79 1.76 16.19 16.19 106.32
THR Three Rivers Fin. Corp. of MI 1.01 0.94 16.08 16.02 118.86
WSB Washington SB, FSB of MD 0.44 0.30 5.21 5.21 61.87
WFI Winton Financial Corp. of OH 0.80 0.66 5.80 5.68 80.84
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN(8) 1.82 1.24 21.44 21.09 237.69
FBER 1st Bergen Bancorp of NJ 0.82 0.82 14.30 14.30 122.28
AFED AFSALA Bancorp, Inc. of NY(8) 0.91 0.93 15.26 15.26 125.80
ALBK ALBANK Fin. Corp. of Albany NY(8) 3.32 3.29 27.74 21.70 309.29
AMFC AMB Financial Corp. of IN 1.11 0.63 16.35 16.35 115.94
ASBP ASB Financial Corp. of OH 0.66 0.65 10.68 10.68 70.28
ABBK Abington Bancorp of MA* 1.26 1.07 9.79 8.90 155.67
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
AABC Access Anytime Bancorp of NM 9.75 1,217 11.9 13.00 6.37 10.25 -4.88 47.28 -11.36
AFBC Advance Fin. Bancorp of WV 15.75 1,074 16.9 20.88 15.63 15.88 -0.82 0.00 -9.38
ALBC Albion Banc Corp. of Albion NY 9.75 752 7.3 14.17 7.75 8.69 12.20 25.81 -26.86
ABCL Alliance Bancorp, Inc. of IL 21.50 11,435 245.9 29.25 20.75 22.00 -2.27 1.18 -18.87
ALLB Alliance Bank MHC of PA (19.9) 21.25 3,273 13.8 39.00 16.75 21.25 0.00 25.89 -31.45
AHCI Ambanc Holding Co., Inc. of NY* 15.06 4,105 61.8 20.00 14.13 16.00 -5.87 -3.65 -19.68
ASBI Ameriana Bancorp of IN 18.50 3,253 60.2 22.00 17.75 18.50 0.00 0.00 -6.94
ABCW Anchor Bancorp Wisconsin of WI 42.38 8,920 378.0 46.50 26.25 42.50 -0.28 54.78 16.49
ANDB Andover Bancorp, Inc. of MA* 33.13 6,481 214.7 39.88 23.80 34.50 -3.97 39.79 2.89
ASFC Astoria Financial Corp. of NY 43.25 26,531 1,147.5 62.50 43.25 45.06 -4.02 -7.74 -22.42
AVND Avondale Fin. Corp. of IL 14.25 3,060 43.6 18.88 14.13 14.38 -0.90 -1.32 -12.31
BCSB BCSB Bankcorp MHC of MD (38.6) 11.38 6,117 26.9 12.63 11.25 11.50 -1.04 13.80 13.80
BKCT Bancorp Connecticut of CT* 17.88 5,114 91.4 25.00 15.00 19.75 -9.47 20.16 -14.86
BPLS Bank Plus Corp. of CA 10.25 19,387 198.7 16.13 9.50 10.38 -1.25 -7.57 -18.84
BNKU Bank United Corp. of TX 38.25 31,596 1,208.5 56.00 35.88 40.13 -4.68 3.71 -21.84
BWFC Bank West Fin. Corp. of MI 12.25 2,624 32.1 17.50 10.83 11.38 7.64 13.95 -24.05
BANC BankAtlantic Bancorp of FL 11.44 36,676 419.6 17.00 10.63 11.00 4.00 -10.69 -31.70
BKUNA BankUnited Fin. Corp. of FL 10.63 17,786 189.1 18.50 10.63 11.13 -4.49 -12.37 -31.02
BVCC Bay View Capital Corp. of CA 22.38 20,276 453.8 38.00 22.13 22.13 1.13 -12.88 -38.26
FSNJ Bayonne Banchsares of NJ(8) 14.94 9,094 135.9 17.38 11.63 15.25 -2.03 21.76 11.66
BFSB Bedford Bancshares, Inc. of VA 13.38 2,298 30.7 17.38 11.50 14.00 -4.43 11.50 -21.29
BFFC Big Foot Fin. Corp. of IL 15.75 2,513 39.6 23.94 14.50 15.75 0.00 -7.35 -25.00
BYFC Broadway Fin. Corp. of CA 9.72 933 9.1 12.73 9.72 9.72 0.00 -4.61 -20.78
BRKL Brookline Bncp MHC of MA(47.0) 12.75 29,095 174.4 17.98 12.75 12.75 0.00 27.50 27.50
CBES CBES Bancorp, Inc. of MO 19.50 940 18.3 26.00 17.38 20.75 -6.02 9.06 -12.36
CCFH CCF Holding Company of GA 20.50 895 18.3 24.00 15.00 20.50 0.00 34.34 1.84
CITZ CFS Bancorp, Inc. of IN 10.00 22,727 227.3 11.44 10.00 10.38 -3.66 0.00 0.00
CFSB CFSB Bancorp of Lansing MI 22.50 8,167 183.8 28.75 15.76 23.50 -4.26 41.42 -5.70
CKFB CKF Bancorp of Danville KY 17.38 843 14.7 21.25 16.50 16.50 5.33 -9.71 -6.05
CNSB CNS Bancorp, Inc. of MO 14.75 1,645 24.3 21.50 14.75 15.00 -1.67 -10.61 -28.05
CSBF CSB Financial Group Inc of IL 10.63 821 8.7 14.00 10.50 10.50 1.24 -11.42 -21.26
CBCI Calumet Bancorp of Chicago IL 29.25 3,145 92.0 39.00 27.17 30.25 -3.31 7.66 -12.03
CAFI Camco Fin. Corp. of OH 17.00 5,481 93.2 20.67 11.83 17.75 -4.23 43.70 0.00
CMRN Cameron Fin. Corp. of MO 17.25 2,434 42.0 22.19 16.69 17.25 0.00 -1.43 -15.85
CFNC Carolina Fincorp of NC* 10.13 1,906 19.3 18.88 9.63 10.13 0.00 -43.34 -45.24
CASB Cascade Financial Corp. of WA 14.00 4,266 59.7 16.00 9.60 13.50 3.70 40.00 32.08
CATB Catskill Fin. Corp. of NY* 15.75 4,486 70.7 19.13 15.75 16.00 -1.56 -3.08 -16.58
CAVB Cavalry Bancorp of TN 20.00 7,538 150.8 25.25 19.25 19.75 1.27 100.00 100.00
CNIT Cenit Bancorp of Norfolk VA 21.25 4,997 106.2 28.58 16.42 21.63 -1.76 25.00 -19.81
CEBK Central Co-Op. Bank of MA* 21.00 1,965 41.3 33.50 19.25 22.00 -4.55 7.69 -26.32
CENB Century Bancorp, Inc. of NC(8) 13.63 1,271 17.3 39.00 13.63 14.00 -2.64 -47.23 -51.75
COFI Charter One Financial of OH 28.50 127,635 3,637.6 36.38 25.00 27.88 2.22 11.85 -9.70
CVAL Chester Valley Bancorp of PA 31.50 2,327 73.3 37.00 20.95 31.25 0.80 37.80 7.69
CLAS Classic Bancshares, Inc. of KY 16.50 1,300 21.5 21.50 13.88 15.63 5.57 17.86 -1.49
CBSA Coastal Bancorp of Houston TX 20.25 7,563 153.2 26.67 18.75 21.25 -4.71 1.25 -12.90
CFCP Coastal Fin. Corp. of SC 19.00 6,256 118.9 20.50 14.72 18.75 1.33 2.37 3.37
CFKY Columbia Financial of KY 13.50 2,671 36.1 17.13 13.00 14.00 -3.57 35.00 35.00
CMSB Commonwealth Bancorp Inc of PA 16.75 15,474 259.2 24.25 16.50 17.75 -5.63 -2.22 -15.74
CMSV Commty. Svgs, MHC of FL (48.5)(8) 28.50 5,100 70.4 40.75 27.13 30.25 -5.79 7.55 -19.45
CFTP Community Fed. Bancorp of MS 16.75 4,398 73.7 21.00 16.00 16.13 3.84 -5.63 -17.28
CFFC Community Fin. Corp. of VA 13.00 2,569 33.4 16.38 10.75 14.44 -9.97 19.49 -5.87
CIBI Community Inv. Bancorp of OH 13.25 1,335 17.7 15.25 9.83 13.00 1.92 29.27 23.03
COOP Cooperative Bancshares of NC 15.00 3,027 45.4 25.00 13.00 14.75 1.69 13.21 -38.78
CRZY Crazy Woman Creek Bncorp of WY 14.63 939 13.7 20.00 14.38 15.88 -7.87 1.74 -2.47
CRSB Crusader Holding Corp of PA 14.50 3,833 55.6 17.86 14.05 15.00 -3.33 N.A. N.A.
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
AABC Access Anytime Bancorp of NM 1.28 1.19 7.58 7.58 93.71
AFBC Advance Fin. Bancorp of WV 0.89 0.84 14.52 14.52 103.04
ALBC Albion Banc Corp. of Albion NY 0.45 0.42 8.28 8.28 96.94
ABCL Alliance Bancorp, Inc. of IL 1.09 1.11 11.55 11.42 134.42
ALLB Alliance Bank MHC of PA (19.9) 0.62 0.62 8.93 8.93 83.33
AHCI Ambanc Holding Co., Inc. of NY* 0.62 0.50 14.80 14.80 126.63
ASBI Ameriana Bancorp of IN 1.16 0.99 13.90 13.64 119.43
ABCW Anchor Bancorp Wisconsin of WI 2.30 2.05 14.34 14.12 224.14
ANDB Andover Bancorp, Inc. of MA* 2.11 2.06 16.95 16.95 213.78
ASFC Astoria Financial Corp. of NY 2.73 2.51 32.67 23.12 410.67
AVND Avondale Fin. Corp. of IL -1.53 -1.10 15.07 15.07 198.25
BCSB BCSB Bankcorp MHC of MD (38.6) 0.36 0.36 7.28 7.28 44.74
BKCT Bancorp Connecticut of CT* 1.22 1.05 9.42 9.42 93.82
BPLS Bank Plus Corp. of CA 0.62 0.72 9.57 8.76 217.68
BNKU Bank United Corp. of TX 3.29 3.13 20.67 18.68 414.91
BWFC Bank West Fin. Corp. of MI 0.41 0.33 8.93 8.93 68.73
BANC BankAtlantic Bancorp of FL 0.73 0.31 5.92 4.96 96.15
BKUNA BankUnited Fin. Corp. of FL 0.36 0.28 8.20 7.11 187.06
BVCC Bay View Capital Corp. of CA 0.68 1.06 19.17 12.27 263.44
FSNJ Bayonne Banchsares of NJ(8) 0.48 0.48 10.85 10.85 71.04
BFSB Bedford Bancshares, Inc. of VA 0.72 0.72 8.86 8.86 66.64
BFFC Big Foot Fin. Corp. of IL 0.44 0.38 15.24 15.24 83.36
BYFC Broadway Fin. Corp. of CA 0.64 0.44 13.94 13.94 137.67
BRKL Brookline Bncp MHC of MA(47.0) 0.47 0.47 9.33 9.33 28.09
CBES CBES Bancorp, Inc. of MO 1.17 0.97 17.63 17.63 123.86
CCFH CCF Holding Company of GA 0.18 -0.16 12.93 12.93 159.85
CITZ CFS Bancorp, Inc. of IN 0.36 0.40 10.88 10.88 62.51
CFSB CFSB Bancorp of Lansing MI 1.37 1.25 8.00 8.00 103.60
CKFB CKF Bancorp of Danville KY 1.36 1.03 15.84 15.84 74.22
CNSB CNS Bancorp, Inc. of MO 0.54 0.50 14.63 14.63 59.28
CSBF CSB Financial Group Inc of IL 0.30 0.26 13.52 12.76 58.44
CBCI Calumet Bancorp of Chicago IL 3.25 3.26 27.27 27.27 155.89
CAFI Camco Fin. Corp. of OH 1.18 0.89 10.39 9.75 105.01
CMRN Cameron Fin. Corp. of MO 1.00 0.98 18.86 18.86 90.75
CFNC Carolina Fincorp of NC* 0.55 0.63 13.89 13.89 62.16
CASB Cascade Financial Corp. of WA 0.73 0.69 7.12 7.12 101.90
CATB Catskill Fin. Corp. of NY* 0.85 0.84 15.45 15.45 65.97
CAVB Cavalry Bancorp of TN 0.62 0.43 13.23 13.23 46.54
CNIT Cenit Bancorp of Norfolk VA 1.28 1.19 10.11 9.32 146.97
CEBK Central Co-Op. Bank of MA* 1.55 1.20 18.72 17.00 191.38
CENB Century Bancorp, Inc. of NC(8) 1.06 1.06 14.58 14.58 82.12
COFI Charter One Financial of OH 1.14 1.57 11.23 10.54 152.44
CVAL Chester Valley Bancorp of PA 1.43 1.30 12.80 12.80 147.77
CLAS Classic Bancshares, Inc. of KY 0.78 0.98 15.70 13.46 100.86
CBSA Coastal Bancorp of Houston TX 1.89 1.94 14.61 12.60 392.20
CFCP Coastal Fin. Corp. of SC 1.03 0.85 5.62 5.62 93.23
CFKY Columbia Financial of KY 0.44 0.43 13.42 13.42 47.46
CMSB Commonwealth Bancorp Inc of PA 1.00 0.75 14.10 11.27 154.48
CMSV Commty. Svgs, MHC of FL (48.5)(8) 1.03 0.95 16.11 16.11 149.14
CFTP Community Fed. Bancorp of MS 0.60 0.58 13.67 13.67 57.77
CFFC Community Fin. Corp. of VA 0.70 0.70 9.93 9.89 71.58
CIBI Community Inv. Bancorp of OH 0.68 0.68 8.37 8.37 76.21
COOP Cooperative Bancshares of NC 0.75 0.68 9.62 9.62 126.01
CRZY Crazy Woman Creek Bncorp of WY 0.79 0.79 15.49 15.49 65.69
CRSB Crusader Holding Corp of PA 0.74 0.68 5.78 5.78 52.82
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
DNFC D&N Financial Corp. of MI 22.25 9,157 203.7 29.75 16.93 23.63 -5.84 29.21 -16.04
DCBI Delphos Citizens Bancorp of OH 16.25 1,848 30.0 24.25 15.94 16.00 1.56 -1.16 -21.69
DCOM Dime Community Bancorp of NY* 23.00 12,177 280.1 29.31 18.56 23.75 -3.16 21.05 -3.16
DIBK Dime Financial Corp. of CT(8)* 31.69 5,294 167.8 37.00 26.88 30.75 3.06 13.18 3.90
ESBF ESB Financial Corp of PA 16.50 5,665 93.5 20.00 14.21 17.00 -2.94 10.81 -5.71
EGLB Eagle BancGroup of IL 18.00 1,177 21.2 21.13 16.50 18.50 -2.70 9.09 -4.66
EBSI Eagle Bancshares of Tucker GA 21.50 5,806 124.8 27.25 16.13 22.50 -4.44 30.30 -2.27
ETFS East Texas Fin. Serv. of TX 14.25 1,539 21.9 16.25 12.50 13.44 6.03 14.00 -9.98
ESBK Elmira Svgs Bank (The) of NY* 26.00 727 18.9 32.25 21.91 27.75 -6.31 17.43 -13.33
EMLD Emerald Financial Corp. of OH 12.00 10,274 123.3 16.00 6.75 11.50 4.35 71.43 8.50
EFBC Empire Federal Bancorp of MT 13.25 2,480 32.9 18.25 13.25 14.11 -6.09 -15.87 -22.65
EFBI Enterprise Fed. Bancorp of OH 28.00 2,211 61.9 35.00 19.50 29.13 -3.88 40.85 -11.11
EQSB Equitable FSB of Wheaton MD 28.25 1,223 34.5 34.00 18.75 28.25 0.00 50.67 6.60
FCBF FCB Fin. Corp. of Neenah WI 29.50 3,857 113.8 34.00 26.50 29.50 0.00 7.74 0.00
FFDF FFD Financial Corp. of OH 16.75 1,445 24.2 24.00 14.75 17.50 -4.29 11.67 -6.94
FFLC FFLC Bancorp of Leesburg FL 18.00 3,742 67.4 23.50 16.95 18.00 0.00 0.84 -17.24
FFWC FFW Corporation of Wabash IN 18.00 1,458 26.2 21.50 14.00 18.38 -2.07 23.03 -5.26
FFYF FFY Financial Corp. of OH 34.75 4,011 139.4 36.88 26.88 35.88 -3.15 24.11 4.89
FMCO FMS Financial Corp. of NJ 12.00 7,203 86.4 16.67 8.42 13.25 -9.43 42.52 1.44
FFHH FSF Financial Corp. of MN 17.13 2,933 50.2 21.25 17.00 17.13 0.00 -3.82 -18.19
FOBC Fed One Bancorp of Wheeling WV(8) 38.00 2,402 91.3 45.50 20.00 38.88 -2.26 80.95 38.18
FBCI Fidelity Bancorp of Chicago IL 24.00 2,833 68.0 26.00 21.25 24.31 -1.28 12.25 -6.36
FSBI Fidelity Bancorp, Inc. of PA 20.25 1,974 40.0 28.00 16.80 20.00 1.25 17.73 -12.72
FFFL Fidelity Bcsh MHC of FL (47.9) 26.50 6,802 86.4 35.38 24.88 25.50 3.92 8.16 -18.46
FFED Fidelity Fed. Bancorp of IN 5.88 3,127 18.4 10.50 5.75 5.88 0.00 -33.78 -42.97
FFOH Fidelity Financial of OH 14.25 5,598 79.8 19.88 12.50 15.38 -7.35 -12.31 -8.06
FIBC Financial Bancorp, Inc. of NY(8) 36.81 1,707 62.8 37.63 19.50 36.00 2.25 88.77 52.55
FBSI First Bancshares, Inc. of MO 13.31 2,214 29.5 17.50 11.00 13.00 2.38 9.73 -14.84
FBBC First Bell Bancorp of PA 17.50 6,525 114.2 21.63 15.63 17.38 0.69 4.48 -7.89
SKBO First Carnegie MHC of PA(45.0) 13.25 2,300 13.7 21.00 13.25 13.63 -2.79 -12.43 -29.33
FSTC First Citizens Corp of GA 29.50 2,795 82.5 35.50 20.83 29.00 1.72 40.48 -13.24
FCME First Coastal Corp. of ME* 12.00 1,361 16.3 15.75 10.75 12.00 0.00 12.89 -19.35
FDEF First Defiance Fin.Corp. of OH 12.63 8,158 103.0 16.25 12.63 13.00 -2.85 -15.80 -21.06
FESX First Essex Bancorp of MA* 19.00 7,562 143.7 26.13 16.75 21.25 -10.59 10.92 -18.28
FFSX First FSB MHC Sxld of IA(46.3)(8) 32.50 2,840 42.7 39.00 25.00 30.00 8.33 30.00 2.36
FFES First Fed of E. Hartford CT 31.00 2,743 85.0 42.25 31.00 31.38 -1.21 -6.06 -16.78
BDJI First Fed. Bancorp. of MN 15.50 998 15.5 22.00 14.00 16.50 -6.06 9.39 -29.55
FFBH First Fed. Bancshares of AR 22.00 4,871 107.2 30.25 20.50 22.63 -2.78 4.12 -7.37
FTFC First Fed. Capital Corp. of WI 16.00 18,519 296.3 18.38 11.88 16.13 -0.81 33.33 -5.55
FFKY First Fed. Fin. Corp. of KY 24.75 4,130 102.2 28.75 20.50 24.88 -0.52 19.28 8.79
FFBZ First Federal Bancorp of OH 12.00 3,151 37.8 14.50 9.13 12.00 0.00 21.46 13.64
FFCH First Fin. Holdings Inc. of SC 19.88 13,632 271.0 27.00 15.50 22.13 -10.17 27.19 -25.15
FFHS First Franklin Corp. of OH 16.00 1,783 28.5 20.83 12.50 14.50 10.34 20.03 -23.19
FGHC First Georgia Hold. Corp of GA 11.00 4,799 52.8 15.75 5.00 10.63 3.48 112.77 73.78
FFSL First Independence Corp. of KS 12.25 957 11.7 15.63 11.50 11.63 5.33 -3.92 -12.50
FISB First Indiana Corp. of IN 23.38 12,781 298.8 30.00 17.08 22.91 2.05 35.22 -7.26
FKAN First Kansas Financial of KS 11.31 1,554 17.6 12.50 10.88 11.00 2.82 13.10 13.10
FKFS First Keystone Fin. Corp of PA 14.00 2,413 33.8 21.75 13.75 14.25 -1.75 3.70 -21.70
FLKY First Lancaster Bncshrs of KY 13.75 947 13.0 16.38 13.19 14.25 -3.51 -9.84 -13.74
FLFC First Liberty Fin. Corp. of GA 19.25 13,369 257.4 25.50 14.50 21.00 -8.33 28.33 -9.75
CASH First Midwest Fin., Inc. of OH 19.13 2,614 50.0 24.88 17.75 19.63 -2.55 10.07 -14.98
FMBD First Mutual Bancorp Inc of IL(8) 17.13 3,531 60.5 25.00 15.00 17.19 -0.35 8.76 -31.48
FMSB First Mutual SB of Bellevue WA* 13.69 4,244 58.1 20.17 13.58 14.50 -5.59 -1.01 -26.00
FNGB First Northern Cap. Corp of WI 12.63 8,859 111.9 14.00 12.38 12.88 -1.94 -4.68 -9.79
FFPB First Palm Beach Bancorp of FL 39.63 5,136 203.5 44.94 32.25 39.50 0.33 20.53 -8.12
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
DNFC D&N Financial Corp. of MI 1.63 1.44 11.10 11.01 203.95
DCBI Delphos Citizens Bancorp of OH 0.93 0.93 15.21 15.21 60.94
DCOM Dime Community Bancorp of NY* 0.96 0.90 15.55 13.52 129.52
DIBK Dime Financial Corp. of CT(8)* 2.94 2.92 15.57 15.20 191.99
ESBF ESB Financial Corp of PA 1.03 1.03 12.01 10.72 166.91
EGLB Eagle BancGroup of IL 0.50 0.25 17.56 17.56 153.11
EBSI Eagle Bancshares of Tucker GA 1.24 1.25 12.87 12.87 197.98
ETFS East Texas Fin. Serv. of TX 0.45 0.41 13.70 13.70 78.59
ESBK Elmira Svgs Bank (The) of NY* 1.39 1.47 19.63 19.63 315.97
EMLD Emerald Financial Corp. of OH 0.64 0.59 4.95 4.89 59.94
EFBC Empire Federal Bancorp of MT 0.65 0.65 16.39 16.39 44.59
EFBI Enterprise Fed. Bancorp of OH 1.03 0.88 16.47 16.06 165.37
EQSB Equitable FSB of Wheaton MD 1.85 1.79 14.20 14.20 273.97
FCBF FCB Fin. Corp. of Neenah WI 1.51 1.12 19.42 19.42 134.24
FFDF FFD Financial Corp. of OH 1.09 0.49 15.43 15.43 69.28
FFLC FFLC Bancorp of Leesburg FL 1.01 0.95 13.88 13.88 109.21
FFWC FFW Corporation of Wabash IN 1.26 1.22 13.06 11.98 136.29
FFYF FFY Financial Corp. of OH 1.95 1.92 21.05 21.05 160.72
FMCO FMS Financial Corp. of NJ 0.75 0.75 5.52 5.47 92.83
FFHH FSF Financial Corp. of MN 1.10 1.07 14.57 14.57 140.15
FOBC Fed One Bancorp of Wheeling WV(8) 1.29 1.28 17.21 16.52 153.07
FBCI Fidelity Bancorp of Chicago IL 0.36 1.07 18.44 18.41 170.96
FSBI Fidelity Bancorp, Inc. of PA 1.41 1.39 13.96 13.96 204.11
FFFL Fidelity Bcsh MHC of FL (47.9) 1.07 0.92 13.01 12.62 194.16
FFED Fidelity Fed. Bancorp of IN -0.25 -0.19 4.28 4.28 63.14
FFOH Fidelity Financial of OH 0.87 0.84 11.64 10.31 96.54
FIBC Financial Bancorp, Inc. of NY(8) 1.62 1.58 16.43 16.36 181.66
FBSI First Bancshares, Inc. of MO 0.82 0.81 10.79 10.33 80.37
FBBC First Bell Bancorp of PA 1.15 1.11 11.43 11.43 101.86
SKBO First Carnegie MHC of PA(45.0) 0.42 0.50 10.86 10.86 64.41
FSTC First Citizens Corp of GA 2.20 1.99 12.72 10.17 126.02
FCME First Coastal Corp. of ME* 0.94 0.82 11.09 11.09 110.23
FDEF First Defiance Fin.Corp. of OH 0.66 0.63 12.49 12.49 70.79
FESX First Essex Bancorp of MA* 1.36 1.23 12.05 10.62 171.03
FFSX First FSB MHC Sxld of IA(46.3)(8) 1.16 1.17 14.50 11.48 201.13
FFES First Fed of E. Hartford CT 2.07 2.29 24.99 24.99 361.28
BDJI First Fed. Bancorp. of MN 0.77 0.77 12.35 12.35 113.39
FFBH First Fed. Bancshares of AR 1.11 1.05 17.29 17.29 117.10
FTFC First Fed. Capital Corp. of WI 1.00 0.76 6.12 5.81 85.33
FFKY First Fed. Fin. Corp. of KY 1.52 1.48 13.03 12.34 98.63
FFBZ First Federal Bancorp of OH 0.58 0.58 5.12 5.11 67.17
FFCH First Fin. Holdings Inc. of SC 1.11 1.08 8.67 8.67 136.31
FFHS First Franklin Corp. of OH 1.05 0.91 12.04 11.99 130.31
FGHC First Georgia Hold. Corp of GA 0.38 0.38 2.96 2.76 36.57
FFSL First Independence Corp. of KS 0.79 0.79 12.07 12.07 130.09
FISB First Indiana Corp. of IN 1.41 1.07 12.23 12.09 132.07
FKAN First Kansas Financial of KS 0.61 0.61 12.95 12.95 69.29
FKFS First Keystone Fin. Corp of PA 1.13 1.00 10.64 10.64 159.62
FLKY First Lancaster Bncshrs of KY 0.51 0.51 14.91 14.91 55.97
FLFC First Liberty Fin. Corp. of GA 0.74 0.77 7.45 6.81 101.35
CASH First Midwest Fin., Inc. of OH 1.10 0.99 16.33 14.54 155.31
FMBD First Mutual Bancorp Inc of IL(8) 0.37 0.29 15.64 12.11 110.52
FMSB First Mutual SB of Bellevue WA* 1.03 1.01 7.22 7.22 106.30
FNGB First Northern Cap. Corp of WI 0.71 0.66 8.48 8.48 76.42
FFPB First Palm Beach Bancorp of FL 1.79 1.14 22.79 22.30 348.79
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
FWWB First Savings Bancorp of WA 22.50 11,699 263.2 25.97 21.14 23.00 -2.17 -0.49 -10.00
FSFF First SecurityFed Fin of IL 14.00 6,408 89.7 17.25 14.00 15.25 -8.20 40.00 -11.11
FSLA First Source Bancorp of NJ 8.94 31,740 283.8 13.93 6.51 9.00 -0.67 34.44 -35.82
SOPN First Svgs Bancorp of NC 24.00 3,711 89.1 26.00 20.25 23.25 3.23 14.29 -5.88
FBNW FirstBank Corp of Clarkston WA 17.75 1,984 35.2 23.75 16.00 18.88 -5.99 -1.39 -5.99
FFDB FirstFed Bancorp, Inc. of AL 12.00 2,434 29.2 15.94 8.27 14.50 -17.24 45.10 11.01
FSPT FirstSpartan Fin. Corp. of SC 36.63 4,253 155.8 47.25 35.00 37.25 -1.66 2.46 -8.99
FLAG Flag Financial Corp of GA 14.00 5,175 72.5 19.38 9.67 16.38 -14.53 42.42 -2.30
FLGS Flagstar Bancorp, Inc of MI 26.75 13,670 365.7 28.38 17.75 27.25 -1.83 39.83 35.10
FFIC Flushing Fin. Corp. of NY* 23.25 7,810 181.6 29.88 20.00 23.25 0.00 14.81 -2.64
FBHC Fort Bend Holding Corp. of TX(8) 20.75 1,817 37.7 28.00 16.00 20.00 3.75 34.92 -4.60
FTSB Fort Thomas Fin. Corp. of KY 13.63 1,474 20.1 15.75 10.69 13.50 0.96 27.50 -11.38
FKKY Frankfort First Bancorp of KY 14.56 1,619 23.6 22.94 13.75 14.75 -1.29 -23.37 -17.41
FTNB Fulton Bancorp, Inc. of MO 18.00 1,701 30.6 26.50 15.75 18.00 0.00 -13.25 -18.66
GUPB GFSB Bancorp, Inc of Gallup NM 13.88 1,201 16.7 17.00 12.33 14.25 -2.60 9.55 -1.42
GSLA GS Financial Corp. of LA 13.38 3,267 43.7 21.00 13.25 13.25 0.98 -13.00 -36.29
GOSB GSB Financial Corp. of NY* 13.50 2,248 30.3 18.94 12.75 12.75 5.88 -7.72 -25.25
GBNK Gaston Fed Bncp MHC of NC(47.0 12.50 4,497 26.4 18.06 12.50 14.00 -10.71 25.00 25.00
GFCO Glenway Financial Corp. of OH 21.75 2,282 49.6 24.25 12.25 22.63 -3.89 67.31 16.00
GTPS Great American Bancorp of IL 19.00 1,588 30.2 23.00 17.00 21.38 -11.13 8.57 0.00
PEDE Great Pee Dee Bancorp of SC 11.50 2,202 25.3 17.38 11.50 11.50 0.00 15.00 -28.70
GSFC Green Street Fin. Corp. of NC 13.50 4,083 55.1 20.75 13.50 13.50 0.00 -21.74 -26.03
GFED Guaranty Fed Bancshares of MO 12.63 6,228 78.7 14.44 9.65 13.00 -2.85 28.35 -1.94
HCBB HCB Bancshares of Camden AR 13.00 2,645 34.4 16.13 12.75 13.50 -3.70 -3.70 -10.34
HEMT HF Bancorp of Hemet CA 15.00 6,369 95.5 18.25 14.75 16.00 -6.25 0.81 -14.29
HFFC HF Financial Corp. of SD 19.44 4,395 85.4 24.17 14.67 21.25 -8.52 29.60 10.02
HFNC HFNC Financial Corp. of NC(8) 11.75 17,193 202.0 16.81 11.25 11.63 1.03 -22.95 -18.97
HMNF HMN Financial, Inc. of MN 15.25 5,430 82.8 21.67 14.00 14.00 8.93 -8.52 -29.63
HALL Hallmark Capital Corp. of WI 13.25 2,934 38.9 18.00 10.63 14.13 -6.23 20.45 -22.06
HRBF Harbor Federal Bancorp of MD 18.25 1,863 34.0 23.41 17.27 18.25 0.00 4.95 -20.51
HARB Harbor Florida Bancshrs of FL 11.50 30,740 353.5 13.50 7.74 12.06 -4.64 47.06 4.36
HFSA Hardin Bancorp of Hardin MO 17.38 816 14.2 20.00 16.50 17.00 2.24 5.33 -4.77
HARL Harleysville SB of PA 30.25 1,675 50.7 35.00 25.75 30.00 0.83 11.01 10.00
HFGI Harrington Fin. Group of IN 9.69 3,276 31.7 13.75 9.63 10.50 -7.71 -20.90 -25.46
HARS Harris Fin. MHC of PA (24.9) 17.75 33,965 149.8 27.88 12.00 17.75 0.00 55.43 -10.71
HFFB Harrodsburg 1st Fin Bcrp of KY 15.00 1,930 29.0 18.00 14.38 15.38 -2.47 0.00 -10.45
HHFC Harvest Home Fin. Corp. of OH 14.75 879 13.0 16.75 11.75 13.25 11.32 25.53 -6.35
HAVN Haven Bancorp of Woodhaven NY 21.50 8,849 190.3 28.75 18.31 20.03 7.34 15.84 -4.44
HTHR Hawthorne Fin. Corp. of CA 16.75 3,170 53.1 24.00 15.63 16.75 0.00 3.08 -16.79
HMLK Hemlock Fed. Fin. Corp. of IL 16.63 1,965 32.7 19.00 15.06 16.81 -1.07 8.13 -2.92
HBSC Heritage Bancorp, Inc of SC 17.50 4,629 81.0 22.38 17.38 17.88 -2.13 16.67 16.67
HFWA Heritage Financial Corp of WA 12.13 9,755 118.3 15.94 12.13 12.56 -3.42 21.30 21.30
HCBC High Country Bancorp of CO 12.25 1,323 16.2 15.50 12.25 13.50 -9.26 22.50 -20.97
HBNK Highland Bancorp of CA 41.00 2,329 95.5 43.50 26.50 41.50 -1.20 54.72 25.19
HIFS Hingham Inst. for Sav. of MA* 26.75 1,304 34.9 37.00 23.63 26.25 1.90 13.83 -6.96
HBEI Home Bancorp of Elgin IL(8) 14.50 6,856 99.4 19.13 14.13 14.88 -2.55 -15.94 -18.90
HBFW Home Bancorp of Fort Wayne IN 28.63 2,351 67.3 37.63 21.38 28.25 1.35 33.91 -2.95
HCFC Home City Fin. Corp. of OH 14.63 905 13.2 22.75 14.31 14.75 -0.81 -7.11 -20.92
HOMF Home Fed Bancorp of Seymour IN 25.25 5,139 129.8 33.75 19.83 26.25 -3.81 22.16 -2.88
HWEN Home Financial Bancorp of IN 8.25 929 7.7 9.75 7.44 7.88 4.70 7.28 -10.81
HLFC Home Loan Financial Corp of OH 14.88 2,248 33.5 16.75 14.00 14.00 6.29 48.80 48.80
HPBC Home Port Bancorp, Inc. of MA* 24.25 1,842 44.7 27.63 19.50 24.25 0.00 19.75 4.84
HSTD Homestead Bancorp, Inc. of LA 8.44 1,478 12.5 9.31 3.41 8.31 1.56 -15.60 46.78
HFBC HopFed Bancorp of KY 17.50 4,034 70.6 21.88 16.00 17.50 0.00 75.00 75.00
HZFS Horizon Fin'l. Services of IA 15.00 880 13.2 16.88 9.44 16.00 -6.25 58.90 25.00
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
FWWB First Savings Bancorp of WA 1.12 1.04 12.84 11.90 98.65
FSFF First SecurityFed Fin of IL 0.46 0.72 14.59 14.55 50.45
FSLA First Source Bancorp of NJ 0.41 0.41 7.72 7.72 37.57
SOPN First Svgs Bancorp of NC 1.40 1.40 18.61 18.61 80.79
FBNW FirstBank Corp of Clarkston WA 0.86 0.52 15.13 15.13 92.50
FFDB FirstFed Bancorp, Inc. of AL 0.68 0.68 7.24 6.67 74.56
FSPT FirstSpartan Fin. Corp. of SC 1.58 1.57 31.12 31.12 118.35
FLAG Flag Financial Corp of GA 0.39 0.27 4.26 4.26 47.92
FLGS Flagstar Bancorp, Inc of MI 1.83 1.83 9.77 9.46 187.56
FFIC Flushing Fin. Corp. of NY* 1.14 1.14 17.56 16.89 138.09
FBHC Fort Bend Holding Corp. of TX(8) 1.11 0.79 11.78 11.09 174.25
FTSB Fort Thomas Fin. Corp. of KY 0.82 0.82 10.87 10.87 68.93
FKKY Frankfort First Bancorp of KY 0.20 0.65 13.96 13.96 82.34
FTNB Fulton Bancorp, Inc. of MO 0.75 0.58 15.06 15.06 64.45
GUPB GFSB Bancorp, Inc of Gallup NM 0.79 0.79 12.14 12.14 98.40
GSLA GS Financial Corp. of LA 0.57 0.51 16.49 16.49 39.61
GOSB GSB Financial Corp. of NY* 0.39 0.37 14.88 14.88 52.87
GBNK Gaston Fed Bncp MHC of NC(47.0 0.43 0.43 8.56 8.56 38.07
GFCO Glenway Financial Corp. of OH 1.11 1.12 12.60 12.49 131.66
GTPS Great American Bancorp of IL 0.58 0.58 16.88 16.88 92.09
PEDE Great Pee Dee Bancorp of SC 0.33 0.33 14.19 14.19 31.45
GSFC Green Street Fin. Corp. of NC 0.69 0.69 15.59 15.59 43.57
GFED Guaranty Fed Bancshares of MO 0.39 0.38 11.21 11.21 39.55
HCBB HCB Bancshares of Camden AR 0.25 0.25 14.45 14.28 83.79
HEMT HF Bancorp of Hemet CA -0.07 0.21 13.15 11.16 167.33
HFFC HF Financial Corp. of SD 1.41 1.31 12.62 12.62 129.79
HFNC HFNC Financial Corp. of NC(8) 0.70 0.48 9.82 9.82 56.97
HMNF HMN Financial, Inc. of MN 1.06 0.75 15.65 14.55 134.83
HALL Hallmark Capital Corp. of WI 0.95 0.90 11.02 11.02 143.47
HRBF Harbor Federal Bancorp of MD 0.90 0.86 15.74 15.74 124.07
HARB Harbor Florida Bancshrs of FL 0.47 0.45 8.28 8.19 41.78
HFSA Hardin Bancorp of Hardin MO 1.07 0.92 16.52 16.52 148.47
HARL Harleysville SB of PA 2.08 2.08 14.63 14.63 219.46
HFGI Harrington Fin. Group of IN -0.03 0.08 7.47 7.47 168.84
HARS Harris Fin. MHC of PA (24.9) 0.55 0.45 5.41 4.86 66.55
HFFB Harrodsburg 1st Fin Bcrp of KY 0.77 0.77 14.92 14.92 56.38
HHFC Harvest Home Fin. Corp. of OH 0.63 0.63 11.73 11.73 103.39
HAVN Haven Bancorp of Woodhaven NY 1.12 1.11 12.89 12.86 228.02
HTHR Hawthorne Fin. Corp. of CA 2.80 3.29 14.05 14.05 330.25
HMLK Hemlock Fed. Fin. Corp. of IL 0.87 0.87 15.74 15.74 97.21
HBSC Heritage Bancorp, Inc of SC 0.78 0.78 19.41 19.41 67.43
HFWA Heritage Financial Corp of WA 0.37 0.19 9.53 9.53 33.09
HCBC High Country Bancorp of CO 0.53 0.53 13.64 13.64 69.73
HBNK Highland Bancorp of CA 2.90 2.53 18.71 18.71 238.59
HIFS Hingham Inst. for Sav. of MA* 2.10 2.10 16.84 16.84 177.69
HBEI Home Bancorp of Elgin IL(8) 0.36 0.36 13.95 13.95 53.82
HBFW Home Bancorp of Fort Wayne IN 1.25 1.22 18.09 18.09 150.30
HCFC Home City Fin. Corp. of OH 1.02 1.02 15.68 15.68 84.39
HOMF Home Fed Bancorp of Seymour IN 1.94 1.57 12.62 12.28 137.22
HWEN Home Financial Bancorp of IN 0.42 0.33 8.03 8.03 44.64
HLFC Home Loan Financial Corp of OH 0.37 0.37 13.82 13.82 35.49
HPBC Home Port Bancorp, Inc. of MA* 1.63 1.81 11.98 11.98 122.53
HSTD Homestead Bancorp, Inc. of LA 0.36 0.36 10.40 10.40 48.02
HFBC HopFed Bancorp of KY 0.65 0.65 14.26 14.26 54.89
HZFS Horizon Fin'l. Services of IA 0.90 0.69 9.60 9.60 105.35
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
HRZB Horizon Financial Corp. of WA* 14.75 7,488 110.4 19.25 14.75 15.38 -4.10 -1.67 -16.90
HRBT Hudson River Bancorp Inc of NY 12.00 17,854 208.1 13.69 11.94 12.44 -3.54 20.00 20.00
ITLA ITLA Capital Corp of CA* 19.50 7,697 150.1 24.00 17.38 19.75 -1.27 9.86 1.30
ICBC Independence Comm Bnk Cp of NY 13.19 76,044 1,003.0 19.13 13.00 13.44 -1.86 31.90 31.90
IFSB Independence FSB of DC 16.38 1,281 21.0 21.63 13.00 16.00 2.37 23.62 -3.65
INBI Industrial Bancorp of OH 19.38 5,015 97.2 25.00 14.75 18.63 4.03 31.39 9.18
IWBK Interwest Bancorp of WA 25.00 15,668 391.7 31.33 24.50 26.68 -6.30 -4.47 -0.68
IPSW Ipswich SB of Ipswich MA* 13.50 2,390 32.3 20.75 11.50 14.50 -6.90 16.08 -18.18
JXVL Jacksonville Bancorp of TX 17.13 2,422 41.5 23.25 16.50 17.63 -2.84 2.27 -26.32
JXSB Jcksnville SB,MHC of IL (45.6) 16.75 1,908 14.6 25.50 13.00 16.25 3.08 28.85 -16.25
JSBA Jefferson Svgs Bancorp of MO 20.25 10,030 203.1 31.88 16.25 23.44 -13.61 23.63 -1.22
KSBK KSB Bancorp of Kingfield ME* 16.50 1,259 20.8 22.50 12.50 16.50 0.00 29.41 -26.67
KFBI Klamath First Bancorp of OR 17.50 9,917 173.5 24.25 17.00 17.44 0.34 -7.89 -18.60
LSBI LSB Fin. Corp. of Lafayette IN 31.00 954 29.6 32.00 19.52 31.50 -1.59 57.84 14.22
LVSB Lakeview Financial of NJ 21.25 4,978 105.8 28.75 16.13 22.75 -6.59 28.79 -16.67
LARK Landmark Bancshares, Inc of KS 22.06 1,549 34.2 29.25 21.25 22.06 0.00 2.60 -11.33
LARL Laurel Capital Group of PA 20.00 2,191 43.8 23.50 14.33 19.00 5.26 34.86 -7.71
LSBX Lawrence Savings Bank of MA* 13.25 4,327 57.3 19.31 11.36 14.31 -7.41 17.78 -19.11
LFED Leeds Fed Bksr MHC of MD (36.3 17.50 5,182 33.0 23.50 16.33 17.00 2.94 7.16 -19.54
LXMO Lexington B&L Fin. Corp. of MO 15.00 1,009 15.1 17.88 15.00 15.03 -0.20 -6.25 -15.49
LIBB Liberty Bancorp MHC of NJ (47) 10.25 3,901 18.8 11.69 9.88 10.13 1.18 2.50 2.50
LFCO Life Financial Corp of CA(8) 9.25 6,556 60.6 25.38 9.25 10.88 -14.98 -42.19 -26.76
LFBI Little Falls Bancorp of NJ 16.00 2,478 39.6 22.25 15.38 16.00 0.00 -7.57 -21.95
LOGN Logansport Fin. Corp. of IN 14.75 1,262 18.6 19.63 13.50 15.00 -1.67 8.22 -18.06
LISB Long Island Bancorp, Inc of NY(8) 48.56 24,183 1,174.3 67.63 38.63 50.50 -3.84 25.12 -2.16
MAFB MAF Bancorp, Inc. of IL 21.00 22,577 474.1 28.83 20.33 22.13 -5.11 0.38 -10.94
MBLF MBLA Financial Corp. of MO 19.25 1,251 24.1 30.63 19.25 20.25 -4.94 -18.09 -36.89
MECH MECH Financial Inc of CT* 28.00 5,295 148.3 31.81 22.50 28.50 -1.75 24.44 7.44
MFBC MFB Corp. of Mishawaka IN 24.00 1,590 38.2 30.38 21.00 23.75 1.05 14.29 -21.00
MSBF MSB Financial, Inc of MI 14.50 1,338 19.4 17.73 11.82 14.00 3.57 18.17 -16.04
MARN Marion Capital Holdings of IN 22.75 1,704 38.8 29.50 22.25 22.75 0.00 -1.09 -16.14
MRKF Market Fin. Corp. of OH 13.00 1,336 17.4 20.25 12.75 13.75 -5.45 -8.00 -16.83
MFSL Maryland Fed. Bancorp of MD(8) 38.56 6,572 253.4 42.25 21.50 40.00 -3.60 73.30 10.17
MASB MassBank Corp. of Reading MA* 45.00 3,593 161.7 54.25 37.88 48.00 -6.25 16.49 -5.52
MFLR Mayflower Co-Op. Bank of MA* 22.13 900 19.9 27.50 17.50 23.00 -3.78 22.94 -17.27
MDBK Medford Bancorp, Inc. of MA* 38.50 4,455 171.5 44.25 30.25 40.75 -5.52 23.20 -1.91
MWBX MetroWest Bank of MA* 7.00 14,252 99.8 9.50 6.19 7.25 -3.45 6.71 -22.22
METF Metropolitan Fin. Corp. of OH 13.63 7,051 96.1 18.88 9.00 12.88 5.82 50.44 -12.06
MIFC Mid Iowa Financial Corp. of IA(8) 13.75 1,735 23.9 13.75 9.00 12.25 12.24 42.78 19.57
MCBN Mid-Coast Bancorp of ME 9.00 713 6.4 14.00 8.33 10.00 -10.00 4.90 -10.00
MWBI Midwest Bancshares, Inc. of IA 13.50 1,051 14.2 19.50 11.29 13.50 0.00 19.57 -26.03
MFFC Milton Fed. Fin. Corp. of OH 13.50 2,237 30.2 17.00 13.00 13.00 3.85 -0.95 -12.22
MBSP Mitchell Bancorp, Inc. of NC(8) 17.13 931 15.9 18.50 16.00 17.88 -4.19 2.27 0.76
MBBC Monterey Bay Bancorp of CA 16.00 3,923 62.8 21.40 13.30 16.56 -3.38 17.65 2.56
MONT Montgomery Fin. Corp. of IN 10.31 1,653 17.0 13.63 10.31 11.50 -10.35 -13.22 -19.95
MSBK Mutual SB, FSB of Bay City MI 9.31 4,290 39.9 14.63 9.31 10.00 -6.90 -12.42 -28.38
MYST Mystic Financial of MA* 13.63 2,711 37.0 18.56 13.38 13.63 0.00 36.30 36.30
NHTB NH Thrift Bancshares of NH 15.50 2,095 32.5 22.75 15.50 16.00 -3.13 -8.18 -24.39
NSLB NS&L Bancorp, Inc of Neosho MO 17.38 686 11.9 19.50 17.13 17.50 -0.69 -6.71 -7.94
NSSY NSS Bancorp of CT(8)* 48.50 2,378 115.3 58.75 33.13 49.50 -2.02 38.57 28.48
NMSB Newmil Bancorp, Inc. of CT* 12.00 3,834 46.0 14.63 11.00 12.25 -2.04 -2.04 -7.69
NBCP Niagara Bancorp of NY MHC(45.4* 11.38 29,756 153.7 17.00 11.38 11.50 -1.04 13.80 13.80
NBSI North Bancshares of Chicago IL 12.25 1,265 15.5 18.83 12.25 12.75 -3.92 -17.90 -31.49
FFFD North Central Bancshares of IA 18.25 3,126 57.0 24.88 16.63 18.25 0.00 8.96 -8.20
NEIB Northeast Indiana Bncrp of IN 21.13 1,650 34.9 22.75 16.75 22.00 -3.95 26.15 -4.52
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
HRZB Horizon Financial Corp. of WA* 1.10 1.09 11.20 11.20 73.07
HRBT Hudson River Bancorp Inc of NY 0.41 0.47 12.20 12.20 45.63
ITLA ITLA Capital Corp of CA* 1.70 1.70 13.37 13.33 131.35
ICBC Independence Comm Bnk Cp of NY 0.29 0.32 12.48 11.75 68.68
IFSB Independence FSB of DC 1.09 0.45 15.46 13.99 214.32
INBI Industrial Bancorp of OH 1.05 1.05 12.29 12.29 74.58
IWBK Interwest Bancorp of WA 1.29 1.09 9.02 8.88 133.46
IPSW Ipswich SB of Ipswich MA* 1.06 0.80 5.25 5.25 99.40
JXVL Jacksonville Bancorp of TX 1.39 1.39 14.42 14.42 97.90
JXSB Jcksnville SB,MHC of IL (45.6) 0.51 0.33 9.23 9.23 88.91
JSBA Jefferson Svgs Bancorp of MO 0.98 0.87 11.84 9.50 123.81
KSBK KSB Bancorp of Kingfield ME* 1.20 1.20 9.56 8.31 122.83
KFBI Klamath First Bancorp of OR 0.86 0.86 15.05 13.81 100.25
LSBI LSB Fin. Corp. of Lafayette IN 1.73 1.55 19.06 19.06 226.48
LVSB Lakeview Financial of NJ 1.76 0.88 12.11 8.26 124.48
LARK Landmark Bancshares, Inc of KS 1.61 1.40 21.07 21.07 149.30
LARL Laurel Capital Group of PA 1.38 1.36 10.52 10.52 98.94
LSBX Lawrence Savings Bank of MA* 2.02 1.99 9.14 9.14 82.06
LFED Leeds Fed Bksr MHC of MD (36.3 0.66 0.66 9.52 9.52 57.70
LXMO Lexington B&L Fin. Corp. of MO 0.69 0.69 16.88 15.84 93.67
LIBB Liberty Bancorp MHC of NJ (47) 0.69 0.69 8.30 8.30 61.70
LFCO Life Financial Corp of CA(8) 2.16 2.25 8.93 8.93 59.06
LFBI Little Falls Bancorp of NJ 0.75 0.72 14.63 13.51 143.44
LOGN Logansport Fin. Corp. of IN 1.00 1.02 13.30 13.30 70.52
LISB Long Island Bancorp, Inc of NY(8) 2.17 1.75 23.31 23.11 260.34
MAFB MAF Bancorp, Inc. of IL 1.68 1.63 12.04 10.68 155.52
MBLF MBLA Financial Corp. of MO 1.54 1.53 22.38 22.38 165.83
MECH MECH Financial Inc of CT* 2.49 2.49 17.14 17.14 178.65
MFBC MFB Corp. of Mishawaka IN 1.37 1.34 21.52 21.52 182.79
MSBF MSB Financial, Inc of MI 0.89 0.79 9.91 9.91 59.35
MARN Marion Capital Holdings of IN 1.43 1.43 23.22 22.73 112.99
MRKF Market Fin. Corp. of OH 0.48 0.48 15.25 15.25 43.23
MFSL Maryland Fed. Bancorp of MD(8) 1.13 1.59 15.89 15.74 181.38
MASB MassBank Corp. of Reading MA* 2.93 2.65 29.80 29.39 258.68
MFLR Mayflower Co-Op. Bank of MA* 1.66 1.49 14.40 14.19 150.58
MDBK Medford Bancorp, Inc. of MA* 2.65 2.50 23.23 22.00 251.48
MWBX MetroWest Bank of MA* 0.54 0.53 3.27 3.27 45.37
METF Metropolitan Fin. Corp. of OH 0.93 0.82 5.42 5.01 140.36
MIFC Mid Iowa Financial Corp. of IA(8) 0.88 0.96 7.50 7.49 84.75
MCBN Mid-Coast Bancorp of ME 0.67 0.62 7.49 7.49 88.38
MWBI Midwest Bancshares, Inc. of IA 1.26 1.10 10.40 10.40 150.96
MFFC Milton Fed. Fin. Corp. of OH 0.63 0.56 11.50 11.50 101.35
MBSP Mitchell Bancorp, Inc. of NC(8) 0.54 0.54 15.60 15.60 39.67
MBBC Monterey Bay Bancorp of CA 0.44 0.41 12.00 11.22 102.76
MONT Montgomery Fin. Corp. of IN 0.50 0.50 12.05 12.05 66.02
MSBK Mutual SB, FSB of Bay City MI -2.01 -0.71 7.76 7.76 153.06
MYST Mystic Financial of MA* 0.52 0.48 13.20 13.20 69.27
NHTB NH Thrift Bancshares of NH 1.36 1.25 12.38 10.76 153.03
NSLB NS&L Bancorp, Inc of Neosho MO 0.59 0.59 16.74 16.62 89.13
NSSY NSS Bancorp of CT(8)* 2.82 3.20 22.82 22.21 281.19
NMSB Newmil Bancorp, Inc. of CT* 0.74 0.74 8.60 8.60 96.58
NBCP Niagara Bancorp of NY MHC(45.4* 0.48 0.46 8.31 8.31 43.56
NBSI North Bancshares of Chicago IL 0.44 0.42 10.73 10.73 93.66
FFFD North Central Bancshares of IA 1.21 1.21 16.42 14.29 106.47
NEIB Northeast Indiana Bncrp of IN 1.36 1.36 16.20 16.20 121.40
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
NWSB Northwest Bcrp MHC of PA (30.8 12.75 46,841 184.1 18.00 10.38 12.88 -1.01 16.54 -9.77
NWEQ Northwest Equity Corp. of WI 17.44 825 14.4 22.25 16.00 17.63 -1.08 5.70 -15.95
NTMG Nutmeg FS&LA of CT 11.88 1,077 12.8 12.50 7.69 12.13 -2.06 44.00 13.14
OHSL OHSL Financial Corp. of OH 15.50 2,496 38.7 18.38 11.63 16.00 -3.13 33.28 14.81
OCFC Ocean Fin. Corp. of NJ 16.94 15,534 263.1 20.00 16.63 17.38 -2.53 -0.35 -9.07
OTFC Oregon Trail Fin. Corp. of OR 14.00 4,695 65.7 18.50 14.00 15.50 -9.68 40.00 -19.45
OFCP Ottawa Financial Corp. of MI 24.13 5,717 138.0 30.91 20.87 23.88 1.05 14.47 -21.93
PFFB PFF Bancorp of Pomona CA 17.50 16,214 283.7 21.50 17.00 17.25 1.45 -10.26 -11.97
PSFI PS Financial of Chicago IL 12.13 2,019 24.5 22.38 11.25 11.38 6.59 -19.13 -45.80
PSBI PSB Bancorp Inc. of PA* 7.75 3,101 24.0 11.27 6.80 7.88 -1.65 13.97 -31.23
PVFC PVF Capital Corp. of OH 15.75 3,990 62.8 18.83 12.67 16.34 -3.61 10.53 17.01
PBCI Pamrapo Bancorp, Inc. of NJ 28.00 2,843 79.6 32.38 20.75 25.50 9.80 28.74 2.75
PFED Park Bancorp of Chicago IL 17.94 2,418 43.4 19.75 16.38 17.69 1.41 9.52 -3.70
PVSA Parkvale Financial Corp of PA 32.13 5,173 166.2 35.00 23.40 33.00 -2.64 35.00 -6.19
PBHC Pathfinder BC MHC of NY (45.2)* 15.00 2,831 19.2 26.13 10.83 15.13 -0.86 43.95 -25.00
PEEK Peekskill Fin. Corp. of NY 15.75 2,896 45.6 18.25 15.75 16.50 -4.55 -3.08 -5.97
PFSB PennFed Fin. Services of NJ 14.44 9,386 135.5 19.00 14.38 14.88 -2.96 -2.10 -15.70
PWBK Pennwood Bancorp, Inc. of PA 12.31 697 8.6 17.44 11.50 12.31 0.00 0.98 -16.88
PBKB People's Bancshares of MA* 18.75 3,316 62.2 27.75 15.88 19.63 -4.48 16.24 -17.58
TSBS Peoples Bancorp Inc of NJ* 8.13 36,325 295.3 11.83 7.22 8.44 -3.67 10.61 -31.28
PFDC Peoples Bancorp of Auburn IN 21.00 3,357 70.5 25.00 15.67 21.50 -2.33 21.74 -4.55
PBCT Peoples Bank, MHC of CT (41.2)* 27.00 64,130 746.1 41.13 27.00 27.06 -0.22 -1.82 -28.95
PFFC Peoples Fin. Corp. of OH 12.00 1,352 16.2 19.00 11.00 11.00 9.09 -30.96 -20.69
PHBK Peoples Heritage Fin Grp of ME* 19.25 87,565 1,685.6 26.50 18.13 20.00 -3.75 2.67 -16.30
PSFC Peoples Sidney Fin. Corp of OH 19.63 1,785 35.0 24.38 15.50 19.75 -0.61 22.69 9.79
PERM Permanent Bancorp, Inc. of IN 13.50 4,130 55.8 18.25 11.38 13.38 0.90 16.08 -13.24
PCBC Perry Co. Fin. Corp. of MO 20.00 828 16.6 25.00 20.00 20.00 0.00 -2.44 -17.12
PHFC Pittsburgh Home Fin Corp of PA 16.00 1,969 31.5 20.81 14.50 14.63 9.36 -17.44 -11.11
PFSL Pocahontas Bancorp of AR 8.56 6,685 57.2 11.43 6.46 8.69 -1.50 40.56 -22.60
PTRS Potters Financial Corp of OH 14.50 951 13.8 22.25 12.00 14.88 -2.55 19.54 -27.50
PHSB Ppls Home SB, MHC of PA (45.0) 16.25 2,760 20.2 22.13 15.88 17.00 -4.41 1.56 -13.93
PRBC Prestige Bancorp of PA 16.00 1,052 16.8 22.07 14.78 16.00 0.00 5.12 -7.99
PFNC Progress Financial Corp. of PA 16.00 5,246 83.9 21.67 12.93 17.25 -7.25 28.31 1.85
PROV Provident Fin. Holdings of CA 19.75 4,854 95.9 24.25 19.25 20.31 -2.76 2.60 -9.73
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 28.16 2,106 17.6 51.00 22.13 32.00 -12.00 22.43 -10.26
PLSK Pulaski SB, MHC of NJ (47.0) 14.88 2,108 14.7 24.50 14.00 14.88 0.00 -12.47 -22.70
PULS Pulse Bancorp of S. River NJ(8) 29.00 3,120 90.5 30.50 20.50 29.00 0.00 41.46 10.98
QCFB QCF Bancorp of Virginia MN 29.63 1,365 40.4 31.75 25.00 30.00 -1.23 16.20 -0.40
QCBC Quaker City Bancorp of CA 17.25 5,827 100.5 21.25 15.80 16.75 2.99 4.55 1.47
QCSB Queens County Bancorp of NY* 40.56 14,941 606.0 47.13 34.17 41.00 -1.07 18.15 0.15
RARB Raritan Bancorp of Raritan NJ* 28.00 2,373 66.4 30.25 22.25 27.75 0.90 25.84 0.00
RELY Reliance Bancorp, Inc. of NY 29.25 9,565 279.8 42.25 29.25 31.00 -5.65 -3.31 -20.15
RELI Reliance Bancshares Inc of WI(8) 9.38 2,371 22.2 10.13 8.06 9.50 -1.26 8.69 -1.26
RCBK Richmond County Fin Corp of NY 15.06 26,424 397.9 19.75 14.81 15.50 -2.84 50.60 50.60
RIVR River Valley Bancorp of IN 16.88 1,190 20.1 20.75 16.25 17.50 -3.54 0.78 -9.97
RVSB Riverview Bancorp of WA 13.00 6,186 80.4 19.13 9.91 15.13 -14.08 29.22 -26.76
RSLN Roslyn Bancorp, Inc. of NY* 18.63 41,400 771.3 30.50 18.31 18.50 0.70 -22.38 -19.87
SCCB S. Carolina Comm. Bnshrs of SC 22.00 580 12.8 24.50 21.25 22.00 0.00 -0.59 -2.22
SBFL SB Fngr Lakes MHC of NY (33.1) 16.00 3,570 18.9 24.75 9.75 17.13 -6.60 64.10 0.00
SFED SFS Bancorp of Schenectady NY(8) 27.50 1,208 33.2 27.75 19.00 27.00 1.85 41.24 2.31
SGVB SGV Bancorp of W. Covina CA 16.00 2,348 37.6 19.38 15.00 15.25 4.92 1.59 -9.86
SISB SIS Bancorp, Inc. of MA(8)* 42.50 6,962 295.9 52.63 29.25 43.25 -1.73 41.06 5.75
SWCB Sandwich Bancorp of MA(8)* 60.25 2,043 123.1 64.50 32.00 60.50 -0.41 78.52 36.93
SFSL Security First Corp. of OH(8) 21.00 7,864 165.1 27.88 17.38 22.00 -4.55 9.09 0.57
SKAN Skaneateles Bancorp Inc of NY* 17.00 1,445 24.6 22.25 14.75 16.25 4.62 13.33 -23.18
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
NWSB Northwest Bcrp MHC of PA (30.8 0.44 0.44 4.55 4.07 51.44
NWEQ Northwest Equity Corp. of WI 1.36 1.27 13.96 13.96 119.68
NTMG Nutmeg FS&LA of CT 0.53 0.37 6.04 6.04 103.56
OHSL OHSL Financial Corp. of OH 0.82 0.76 10.61 10.61 100.63
OCFC Ocean Fin. Corp. of NJ 0.90 0.90 13.90 13.90 97.75
OTFC Oregon Trail Fin. Corp. of OR 0.67 0.67 14.33 14.33 56.06
OFCP Ottawa Financial Corp. of MI 1.34 1.24 13.53 11.09 160.13
PFFB PFF Bancorp of Pomona CA 0.99 0.93 15.68 15.52 173.45
PSFI PS Financial of Chicago IL 0.45 0.76 11.55 11.55 41.52
PSBI PSB Bancorp Inc. of PA* 0.37 0.37 9.41 9.41 47.49
PVFC PVF Capital Corp. of OH 1.29 1.22 7.56 7.56 104.99
PBCI Pamrapo Bancorp, Inc. of NJ 1.73 1.67 17.20 17.11 134.17
PFED Park Bancorp of Chicago IL 0.67 0.71 16.25 16.25 81.62
PVSA Parkvale Financial Corp of PA 2.10 2.10 15.95 15.87 204.04
PBHC Pathfinder BC MHC of NY (45.2)* 0.62 0.50 8.15 6.91 69.30
PEEK Peekskill Fin. Corp. of NY 0.66 0.67 15.54 15.54 67.63
PFSB PennFed Fin. Services of NJ 1.18 1.15 11.26 9.76 156.52
PWBK Pennwood Bancorp, Inc. of PA 0.53 0.63 12.21 12.21 66.57
PBKB People's Bancshares of MA* 1.59 0.70 9.54 9.21 259.95
TSBS Peoples Bancorp Inc of NJ* 0.37 0.37 8.73 9.03 36.02
PFDC Peoples Bancorp of Auburn IN 1.30 1.30 13.51 13.51 89.56
PBCT Peoples Bank, MHC of CT (41.2)* 1.49 0.80 13.17 11.28 142.67
PFFC Peoples Fin. Corp. of OH 0.79 0.30 11.64 11.64 60.81
PHBK Peoples Heritage Fin Grp of ME* 0.87 0.87 5.60 4.26 83.48
PSFC Peoples Sidney Fin. Corp of OH 0.71 0.71 14.87 14.87 59.12
PERM Permanent Bancorp, Inc. of IN 0.64 0.62 10.33 10.23 106.32
PCBC Perry Co. Fin. Corp. of MO 1.04 1.03 19.69 19.69 103.96
PHFC Pittsburgh Home Fin Corp of PA 1.12 0.95 12.77 12.62 171.82
PFSL Pocahontas Bancorp of AR 0.36 0.35 8.70 8.70 59.94
PTRS Potters Financial Corp of OH 1.03 1.00 11.59 11.59 133.10
PHSB Ppls Home SB, MHC of PA (45.0) 0.63 0.56 10.33 10.33 80.94
PRBC Prestige Bancorp of PA 0.70 0.68 15.00 15.00 152.64
PFNC Progress Financial Corp. of PA 0.71 0.64 5.10 4.52 92.41
PROV Provident Fin. Holdings of CA 1.02 0.50 17.47 17.47 157.51
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 0.95 0.78 11.70 11.70 87.19
PLSK Pulaski SB, MHC of NJ (47.0) 0.55 0.55 10.44 10.44 90.50
PULS Pulse Bancorp of S. River NJ(8) 1.81 1.83 14.43 14.43 173.08
QCFB QCF Bancorp of Virginia MN 1.90 1.88 19.98 19.98 112.89
QCBC Quaker City Bancorp of CA 1.08 1.05 12.92 12.92 147.59
QCSB Queens County Bancorp of NY* 1.50 1.47 11.34 11.34 108.59
RARB Raritan Bancorp of Raritan NJ* 1.66 1.63 13.31 13.14 176.49
RELY Reliance Bancorp, Inc. of NY 1.95 2.05 20.26 13.98 227.89
RELI Reliance Bancshares Inc of WI(8) 0.20 0.20 9.31 9.31 18.63
RCBK Richmond County Fin Corp of NY 0.09 0.74 12.21 12.16 55.40
RIVR River Valley Bancorp of IN 1.08 0.96 15.35 15.14 112.48
RVSB Riverview Bancorp of WA 0.63 0.61 9.87 9.55 44.16
RSLN Roslyn Bancorp, Inc. of NY* 1.07 1.02 15.01 14.94 89.53
SCCB S. Carolina Comm. Bnshrs of SC 0.80 0.80 16.27 16.27 79.84
SBFL SB Fngr Lakes MHC of NY (33.1) 0.26 0.22 6.10 6.10 70.26
SFED SFS Bancorp of Schenectady NY(8) 0.92 0.89 17.95 17.95 145.22
SGVB SGV Bancorp of W. Covina CA 0.66 0.75 13.47 13.30 170.81
SISB SIS Bancorp, Inc. of MA(8)* 1.56 2.00 18.41 18.41 257.68
SWCB Sandwich Bancorp of MA(8)* 2.44 2.35 20.83 20.17 257.72
SFSL Security First Corp. of OH(8) 1.18 1.18 8.22 8.11 87.17
SKAN Skaneateles Bancorp Inc of NY* 1.11 1.09 12.44 12.12 178.27
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1A (continued)
Weekly Thrift Market Line - Part One
Prices As Of August 21, 1998
Price Change Data
Market Capitalization -----------------------------------------------
----------------------- 52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
SOBI Sobieski Bancorp of S. Bend IN 15.75 764 12.0 24.25 15.75 17.25 -8.70 -3.08 -22.72
SSFC South Street Fin. Corp. of NC* 9.00 4,676 42.1 20.00 8.63 9.31 -3.33 -50.68 -52.63
SBAN SouthBanc Shares Inc. of SC 17.63 4,306 75.9 23.76 13.68 17.63 0.00 27.29 -17.07
SCBS Southern Commun. Bncshrs of AL 16.00 1,137 18.2 20.75 14.00 16.00 0.00 0.76 -12.33
SMBC Southern Missouri Bncrp of MO 16.63 1,484 24.7 23.25 16.63 17.94 -7.30 -3.59 -18.88
SVRN Sovereign Bancorp, Inc. of PA 15.13 152,393 2,305.7 22.19 12.24 15.88 -4.72 22.02 -12.49
STFR St. Francis Cap. Corp. of WI 39.50 5,111 201.9 50.75 33.88 40.00 -1.25 13.67 -21.78
SPBC St. Paul Bancorp, Inc. of IL 21.56 34,357 740.7 28.50 21.38 23.00 -6.26 -7.27 -17.87
SFFC StateFed Financial Corp. of IA 12.75 1,566 20.0 15.00 11.00 12.75 0.00 15.91 -13.56
SFIN Statewide Fin. Corp. of NJ 19.00 4,397 83.5 26.69 18.75 19.75 -3.80 1.33 -20.83
STSA Sterling Financial Corp. of WA 20.25 7,606 154.0 27.63 17.88 19.88 1.86 12.50 -6.90
ROSE T R Financial Corp. of NY* 33.25 17,529 582.8 44.75 26.50 35.50 -6.34 19.82 0.00
THRD TF Financial Corp. of PA 24.00 3,192 76.6 30.00 19.25 24.63 -2.56 23.84 -20.00
TPNZ Tappan Zee Fin., Inc. of NY(8) 19.50 1,478 28.8 22.63 17.00 19.38 0.62 17.26 4.00
THTL Thistle Group Holdings of PA 9.00 9,000 81.0 10.06 9.00 9.00 0.00 -10.00 -10.00
TSBK Timberland Bancorp of WA 14.63 6,613 96.7 18.50 14.25 15.75 -7.11 46.30 46.30
TRIC Tri-County Bancorp of WY 12.00 1,167 14.0 16.50 11.38 12.00 0.00 4.90 -20.00
TWIN Twin City Bancorp, Inc. of TN 13.19 1,241 16.4 15.50 13.00 13.06 1.00 -1.05 -14.90
USAB USABancshares, Inc of PA* 11.50 2,002 23.0 13.31 5.81 11.50 0.00 80.25 53.33
UCBC Union Community Bancorp of IN 13.00 3,042 39.5 15.81 13.00 13.50 -3.70 30.00 -11.14
UCFC United Community Fin. of OH 14.81 33,465 495.6 17.94 14.81 15.44 -4.08 48.10 48.10
UFRM United FSB of Rocky Mount NC(8) 17.75 3,283 58.3 21.00 10.50 16.75 5.97 47.92 -9.58
UBMT United Fin. Corp. of MT 24.75 1,698 42.0 31.50 24.75 26.50 -6.60 N.A. N.A.
UTBI United Tenn. Bancshares of TN 12.13 1,455 17.6 16.00 12.13 12.25 -0.98 21.30 21.30
WHGB WHG Bancshares of MD 11.00 1,389 15.3 19.00 11.00 11.00 0.00 -27.30 -41.33
WSFS WSFS Financial Corp. of DE* 17.88 12,525 223.9 23.88 14.50 18.25 -2.03 20.16 -10.60
WVFC WVS Financial Corp. of PA 15.75 3,617 57.0 20.13 13.44 15.50 1.61 16.67 -10.66
WRNB Warren Bancorp of Peabody MA* 10.94 7,905 86.5 14.38 8.75 10.75 1.77 22.37 -4.87
WSBI Warwick Community Bncrp of NY* 14.25 6,607 94.1 18.00 14.13 14.13 0.85 42.50 -18.01
WFSL Washington Federal, Inc. of WA 24.88 52,447 1,304.9 30.29 23.98 25.38 -1.97 2.30 -12.95
WYNE Wayne Bancorp, Inc. of NJ 31.50 2,013 63.4 37.06 21.00 32.75 -3.82 29.90 17.76
WAYN Wayne Svgs Bks MHC of OH (48.2 22.25 2,486 26.6 30.00 17.50 23.00 -3.26 27.14 -15.59
WCFB Wbstr Cty FSB MHC of IA (45.6) 17.63 2,114 17.0 22.00 16.63 17.63 0.00 0.74 -11.85
WBST Webster Financial Corp. of CT 27.25 38,327 1,044.4 36.25 25.00 27.38 -0.47 9.00 -18.05
WEFC Wells Fin. Corp. of Wells MN 18.38 1,879 34.5 22.00 15.75 17.75 3.55 13.95 2.80
WCBI WestCo Bancorp, Inc. of IL(8) 28.00 2,486 69.6 30.50 25.75 27.00 3.70 7.69 2.75
WSTR WesterFed Fin. Corp. of MT 18.63 5,585 104.0 27.00 18.63 20.75 -10.22 -14.34 -26.94
WOFC Western Ohio Fin. Corp. of OH 22.63 2,298 52.0 29.25 22.63 23.38 -3.21 -5.71 -15.81
WEHO Westwood Hmstd Fin Corp of OH 11.88 2,559 30.4 18.13 11.88 12.25 -3.02 -22.76 -30.12
FFWD Wood Bancorp of OH 16.25 2,669 43.4 27.00 12.20 16.25 0.00 23.11 -13.56
YFCB Yonkers Fin. Corp. of NY 16.06 2,772 44.5 22.00 15.75 16.00 0.37 -7.59 -16.57
YFED York Financial Corp. of PA 19.25 8,968 172.6 27.25 16.81 19.00 1.32 -0.77 -25.24
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
SOBI Sobieski Bancorp of S. Bend IN 0.64 0.64 16.58 16.58 117.60
SSFC South Street Fin. Corp. of NC* 0.32 0.33 7.37 7.37 46.40
SBAN SouthBanc Shares Inc. of SC 0.73 0.73 17.01 17.01 77.85
SCBS Southern Commun. Bncshrs of AL 0.70 0.70 10.10 10.10 63.72
SMBC Southern Missouri Bncrp of MO 0.76 0.72 17.79 17.79 106.09
SVRN Sovereign Bancorp, Inc. of PA 0.40 0.61 5.85 5.02 118.75
STFR St. Francis Cap. Corp. of WI 2.54 2.44 25.80 23.05 322.42
SPBC St. Paul Bancorp, Inc. of IL 1.44 1.41 12.46 12.41 133.40
SFFC StateFed Financial Corp. of IA 0.70 0.70 10.14 10.14 57.20
SFIN Statewide Fin. Corp. of NJ 1.25 1.24 14.99 14.97 152.50
STSA Sterling Financial Corp. of WA 1.26 1.10 13.91 12.96 248.25
ROSE T R Financial Corp. of NY* 2.09 1.85 14.05 14.05 228.52
THRD TF Financial Corp. of PA 1.47 1.24 15.97 13.45 200.33
TPNZ Tappan Zee Fin., Inc. of NY(8) 0.75 0.70 14.75 14.75 87.51
THTL Thistle Group Holdings of PA 0.53 0.53 10.79 10.79 38.81
TSBK Timberland Bancorp of WA 0.58 0.55 12.70 12.70 39.54
TRIC Tri-County Bancorp of WY 0.77 0.80 12.03 12.03 76.49
TWIN Twin City Bancorp, Inc. of TN 0.90 0.74 11.34 11.34 88.93
USAB USABancshares, Inc of PA* 0.07 0.12 6.40 6.36 51.22
UCBC Union Community Bancorp of IN 0.47 0.47 14.22 14.22 35.53
UCFC United Community Fin. of OH 0.58 0.58 12.47 12.47 38.59
UFRM United FSB of Rocky Mount NC(8) 0.53 0.35 6.98 6.98 93.10
UBMT United Fin. Corp. of MT 0.80 0.80 14.52 14.52 56.69
UTBI United Tenn. Bancshares of TN 0.57 0.57 13.92 13.92 51.58
WHGB WHG Bancshares of MD 0.48 0.49 14.37 14.37 85.29
WSFS WSFS Financial Corp. of DE* 1.34 1.30 7.27 7.23 122.52
WVFC WVS Financial Corp. of PA 1.02 1.03 9.05 9.05 82.34
WRNB Warren Bancorp of Peabody MA* 0.80 0.83 5.20 5.20 47.13
WSBI Warwick Community Bncrp of NY* 0.31 0.30 12.94 12.94 56.13
WFSL Washington Federal, Inc. of WA 2.09 2.05 14.41 13.33 107.42
WYNE Wayne Bancorp, Inc. of NJ 0.92 0.92 17.15 17.15 135.13
WAYN Wayne Svgs Bks MHC of OH (48.2 0.74 0.68 9.83 9.83 104.49
WCFB Wbstr Cty FSB MHC of IA (45.6) 0.64 0.64 10.67 10.67 44.43
WBST Webster Financial Corp. of CT 1.36 1.37 10.43 9.20 197.22
WEFC Wells Fin. Corp. of Wells MN 1.23 1.17 16.10 16.10 111.46
WCBI WestCo Bancorp, Inc. of IL(8) 1.93 1.77 19.82 19.82 128.37
WSTR WesterFed Fin. Corp. of MT 1.33 1.33 19.46 15.60 183.20
WOFC Western Ohio Fin. Corp. of OH 0.11 0.15 23.32 21.82 159.02
WEHO Westwood Hmstd Fin Corp of OH 0.32 0.51 11.67 11.67 50.75
FFWD Wood Bancorp of OH 0.88 0.76 8.16 8.16 61.82
YFCB Yonkers Fin. Corp. of NY 1.09 1.06 16.36 16.36 124.05
YFED York Financial Corp. of PA 1.15 0.93 11.91 11.91 135.79
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Market Averages. SAIF-Insured Thrifts(no MHCs)
- ----------------------------------------------
SAIF-Insured Thrifts(285) 14.03 13.79 0.93 7.96 5.15 0.88 7.47 0.60 148.60 0.80
NYSE Traded Companies(8) 8.19 7.91 1.09 13.43 6.75 0.56 8.63 0.81 126.82 1.45
AMEX Traded Companies(22) 14.43 14.29 0.84 6.07 4.99 0.83 5.73 0.51 189.29 0.76
NASDAQ Listed OTC Companies(255) 14.15 13.89 0.93 7.99 5.12 0.89 7.60 0.60 146.27 0.79
California Companies(18) 7.96 7.60 0.61 8.60 6.02 0.54 8.07 1.45 104.33 1.33
Florida Companies(6) 10.45 10.01 1.13 12.12 5.27 0.60 6.54 0.49 119.55 0.83
Mid-Atlantic Companies(57) 11.53 11.15 0.82 8.55 5.35 0.83 8.42 0.63 113.48 0.93
Mid-West Companies(131) 14.75 14.55 0.95 7.28 4.91 0.91 6.96 0.55 154.05 0.68
New England Companies(7) 7.48 7.20 0.70 9.58 6.27 0.64 8.82 0.48 185.95 0.99
North-West Companies(11) 18.22 17.88 1.17 9.41 5.13 1.04 8.33 0.36 232.41 0.80
South-East Companies(44) 17.36 17.22 1.05 7.73 4.76 0.99 7.24 0.60 156.12 0.78
South-West Companies(6) 11.26 11.16 0.98 10.41 7.89 0.95 10.17 0.34 182.35 0.55
Western Companies (Excl CA)(5) 19.02 18.60 1.04 6.03 5.30 1.05 6.09 0.37 194.20 0.93
Thrift Strategy(240) 15.10 14.88 0.95 7.54 5.22 0.92 7.20 0.57 150.35 0.74
Mortgage Banker Strategy(27) 7.54 6.96 0.74 9.74 4.29 0.67 9.27 0.63 151.84 0.95
Real Estate Strategy(8) 7.37 7.13 0.87 12.11 6.52 0.80 11.26 1.36 104.70 1.62
Diversified Strategy(7) 8.61 8.39 1.19 13.88 5.92 0.66 9.00 0.62 137.62 1.18
Retail Banking Strategy(3) 6.75 6.51 0.20 4.45 1.08 0.14 3.35 0.88 99.04 1.36
Companies Issuing Dividends(229) 14.04 13.76 0.96 8.06 5.33 0.90 7.45 0.56 148.86 0.76
Companies Without Dividends(56) 14.01 13.88 0.80 7.54 4.42 0.79 7.56 0.79 147.52 0.97
Equity/Assets less than 6%(21) 5.02 4.76 0.55 11.05 4.77 0.59 11.78 1.11 99.79 0.95
Equity/Assets 6-12%(123) 8.85 8.46 0.82 9.59 5.58 0.74 8.63 0.63 143.99 0.89
Equity/Assets greater than 12%(141) 19.82 19.69 1.08 6.09 4.84 1.05 5.84 0.50 159.81 0.70
Converted Last 3 Mths (no MHC)(6) 24.10 24.10 1.00 4.07 4.41 1.03 4.21 0.64 117.50 0.92
Actively Traded Companies(30) 9.45 9.11 0.95 10.91 5.26 0.98 11.65 0.82 139.36 0.94
Market Value Below $20 Million(56) 15.44 15.39 0.89 5.97 5.23 0.82 5.44 0.59 142.00 0.67
Holding Company Structure(257) 14.07 13.83 0.94 7.95 5.18 0.89 7.48 0.62 144.31 0.79
Assets Over $1 Billion(58) 9.23 8.67 0.85 10.77 5.77 0.79 10.05 0.78 123.56 0.99
Assets $500 Million-$1 Billion(37) 10.62 10.25 0.87 8.57 4.51 0.80 8.02 0.56 148.85 0.87
Assets $250-$500 Million(69) 13.63 13.40 0.92 7.98 5.24 0.89 7.59 0.49 172.16 0.81
Assets less than $250 Million(121) 17.50 17.42 0.99 6.45 5.00 0.94 6.04 0.58 149.28 0.68
Goodwill Companies(113) 10.48 9.83 0.86 9.48 5.47 0.80 8.75 0.67 128.69 0.89
Non-Goodwill Companies(171) 16.26 16.26 0.98 7.02 4.96 0.93 6.69 0.56 162.25 0.74
Acquirors of FSLIC Cases(8) 8.98 8.50 1.00 11.71 6.85 0.95 11.19 0.77 66.05 0.63
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
Market Averages. SAIF-Insured Thrifts(no MHCs)
- ----------------------------------------------
SAIF-Insured Thrifts(285) 18.40 138.72 17.62 142.94 19.18 0.32 1.78 29.89
NYSE Traded Companies(8) 14.99 170.58 14.48 177.81 14.69 0.21 0.78 12.10
AMEX Traded Companies(22) 18.61 117.23 16.35 119.09 19.43 0.32 2.02 32.20
NASDAQ Listed OTC Companies(255) 18.48 139.85 17.82 144.21 19.25 0.32 1.79 30.22
California Companies(18) 15.65 129.81 10.16 137.23 16.24 0.15 0.64 13.59
Florida Companies(6) 20.46 168.88 17.56 181.57 22.25 0.24 1.15 23.96
Mid-Atlantic Companies(57) 17.73 144.23 15.16 148.70 19.09 0.30 1.58 28.46
Mid-West Companies(131) 18.58 134.84 18.07 138.06 19.30 0.32 1.82 29.62
New England Companies(7) 16.83 152.28 10.75 160.64 17.08 0.39 2.12 33.15
North-West Companies(11) 19.41 147.44 22.87 152.29 20.40 0.31 1.64 32.73
South-East Companies(44) 20.16 144.44 21.81 148.10 20.79 0.39 2.36 39.32
South-West Companies(6) 12.06 120.87 13.06 125.30 12.13 0.26 1.61 27.06
Western Companies (Excl CA)(5) 17.81 110.04 21.87 114.78 17.66 0.47 2.63 36.34
Thrift Strategy(240) 18.67 131.31 18.24 134.22 19.29 0.33 1.88 30.86
Mortgage Banker Strategy(27) 17.19 186.44 13.94 203.38 19.35 0.27 1.26 26.35
Real Estate Strategy(8) 15.56 171.09 12.58 175.48 16.58 0.18 0.79 13.16
Diversified Strategy(7) 17.64 209.75 17.89 215.64 18.70 0.39 1.84 33.58
Retail Banking Strategy(3) 14.34 133.65 8.58 137.91 15.45 0.15 0.81 17.60
Companies Issuing Dividends(229) 18.40 141.40 17.85 146.12 19.32 0.40 2.23 37.69
Companies Without Dividends(56) 18.41 127.88 16.71 130.10 18.51 0.00 0.00 0.00
Equity/Assets less than 6%(21) 16.49 188.57 9.60 192.44 16.23 0.15 0.72 12.82
Equity/Assets 6-12%(123) 17.31 157.63 13.76 165.91 18.58 0.32 1.64 26.78
Equity/Assets greater than 12%(141) 19.71 115.26 22.12 116.44 20.15 0.34 2.07 35.35
Converted Last 3 Mths (no MHC)(6) 23.59 93.49 22.96 93.49 22.51 0.13 1.58 0.00
Actively Traded Companies(30) 16.06 182.51 16.42 192.96 17.17 0.42 1.76 30.96
Market Value Below $20 Million(56) 19.13 111.93 16.52 112.22 20.23 0.31 2.26 33.48
Holding Company Structure(257) 18.40 138.99 17.78 143.08 19.23 0.33 1.81 30.83
Assets Over $1 Billion(58) 17.40 167.85 14.50 181.61 18.15 0.32 1.40 25.13
Assets $500 Million-$1 Billion(37) 17.05 159.60 15.57 167.48 18.76 0.32 1.56 28.01
Assets $250-$500 Million(69) 18.27 138.70 17.53 139.09 18.87 0.30 1.58 28.30
Assets less than $250 Million(121) 19.39 118.80 19.73 119.44 19.99 0.32 2.14 34.04
Goodwill Companies(113) 17.75 155.50 15.06 166.72 18.75 0.33 1.61 26.29
Non-Goodwill Companies(171) 18.75 128.51 19.25 128.51 19.42 0.31 1.90 32.49
Acquirors of FSLIC Cases(8) 14.86 156.86 14.06 166.21 14.81 0.47 1.88 27.17
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1994 or 1995.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and
assets balances; ROI (return on investment) is current EPS divided by
current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Market Averages. BIF-Insured Thrifts(no MHCs)
- ---------------------------------------------
BIF-Insured Thrifts(56) 12.25 11.95 1.06 10.57 6.13 1.02 9.89 0.61 213.42 1.25
NYSE Traded Companies(5) 17.26 16.06 1.09 8.14 4.53 1.17 8.39 1.01 106.47 0.96
AMEX Traded Companies(5) 12.25 11.93 1.07 10.32 6.60 0.91 8.61 1.08 111.06 1.15
NASDAQ Listed OTC Companies(46) 11.65 11.47 1.05 10.89 6.26 1.01 10.23 0.51 238.26 1.29
California Companies(1) 10.18 10.15 1.43 13.50 8.72 1.43 13.50 1.07 139.44 1.75
Mid-Atlantic Companies(20) 14.66 14.27 0.92 8.00 4.65 0.92 7.91 0.72 128.44 1.13
New England Companies(30) 9.93 9.66 1.14 12.85 7.09 1.05 11.55 0.59 255.48 1.41
North-West Companies(2) 11.06 11.06 1.28 12.54 7.49 1.27 12.35 0.07 989.94 1.07
South-East Companies(3) 17.69 17.54 1.01 5.73 5.89 1.06 5.96 0.32 152.62 0.52
Thrift Strategy(44) 13.28 13.04 1.04 9.71 5.96 1.00 9.01 0.57 204.59 1.18
Mortgage Banker Strategy(6) 8.58 8.12 0.99 12.21 6.55 0.93 11.33 0.61 320.76 1.15
Real Estate Strategy(2) 10.61 10.59 1.58 14.91 8.02 1.61 15.22 1.17 111.47 1.69
Diversified Strategy(4) 6.56 5.74 1.06 16.14 6.39 1.02 15.56 0.88 156.70 2.00
Companies Issuing Dividends(45) 11.89 11.53 1.06 10.82 6.04 1.01 10.01 0.62 207.33 1.18
Companies Without Dividends(11) 13.75 13.72 1.07 9.54 6.53 1.06 9.42 0.55 239.12 1.52
Equity/Assets less than 6%(4) 5.20 4.89 0.96 18.04 7.18 0.73 13.53 0.87 103.77 1.44
Equity/Assets 6-12%(34) 8.76 8.38 1.12 12.71 6.98 1.06 12.04 0.71 232.16 1.41
Equity/Assets greater than 12%(18) 19.62 19.48 0.98 5.34 4.47 1.00 5.51 0.37 205.92 0.92
Converted Last 3 Mths (no MHC)(1) 19.81 19.81 0.78 3.93 4.77 0.78 3.93 0.00 0.00 0.46
Actively Traded Companies(15) 10.20 9.80 1.27 13.45 7.39 1.18 12.09 0.40 213.98 1.08
Market Value Below $20 Million(4) 12.05 12.01 0.84 8.00 6.53 0.83 7.66 0.45 289.91 1.35
Holding Company Structure(43) 13.20 12.99 1.06 9.94 5.92 1.03 9.40 0.52 212.07 1.27
Assets Over $1 Billion(18) 12.18 11.54 1.12 11.00 5.55 1.11 10.73 0.69 154.88 1.26
Assets $500 Million-$1 Billion(10) 9.29 9.15 1.12 12.86 7.26 1.00 10.85 0.56 190.05 1.30
Assets $250-$500 Million(12) 12.20 12.05 1.12 10.98 6.74 1.08 10.60 0.65 245.39 1.46
Assets less than $250 Million(16) 13.82 13.70 0.92 8.69 5.69 0.88 8.05 0.53 264.02 1.04
Goodwill Companies(29) 10.80 10.22 0.97 10.59 6.08 0.93 9.70 0.82 144.47 1.24
Non-Goodwill Companies(27) 13.69 13.69 1.15 10.55 6.18 1.11 10.09 0.41 285.36 1.25
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
Market Averages. BIF-Insured Thrifts(no MHCs)
- --------------------------------------------
BIF-Insured Thrifts(56) 16.73 157.05 17.45 156.41 17.75 0.36 1.72 28.51
NYSE Traded Companies(5) 19.86 160.45 23.85 160.59 22.03 0.55 1.52 36.22
AMEX Traded Companies(5) 16.44 141.40 16.15 146.96 17.11 0.41 2.17 32.74
NASDAQ Listed OTC Companies(46) 16.45 158.54 16.85 157.17 17.26 0.33 1.69 27.06
California Companies(1) 11.47 145.85 14.85 146.29 11.47 0.00 0.00 0.00
Mid-Atlantic Companies(20) 19.44 148.74 20.08 149.99 20.17 0.41 1.53 32.37
New England Companies(30) 15.22 169.58 15.60 167.43 16.73 0.34 1.71 25.75
North-West Companies(2) 13.35 160.65 16.53 160.65 13.54 0.32 2.22 29.71
South-East Companies(3) 19.35 102.39 17.45 103.61 18.29 0.41 3.26 38.86
Thrift Strategy(44) 17.15 145.56 17.90 146.23 18.21 0.38 1.76 29.58
Mortgage Banker Strategy(6) 15.65 180.54 14.50 196.34 17.11 0.29 1.34 20.84
Real Estate Strategy(2) 12.57 178.12 19.03 178.34 12.33 0.18 1.65 22.50
Diversified Strategy(4) 16.48 249.12 16.25 213.11 17.11 0.37 1.97 33.57
Companies Issuing Dividends(45) 17.13 162.97 17.49 162.38 18.28 0.45 2.13 35.47
Companies Without Dividends(11) 14.71 132.76 17.28 133.13 15.16 0.00 0.00 0.00
Equity/Assets less than 6%(4) 14.58 232.50 12.25 247.39 20.69 0.26 1.40 18.69
Equity/Assets 6-12%(34) 15.26 172.63 15.50 169.20 15.96 0.40 1.79 28.45
Equity/Assets greater than 12%(18) 20.50 115.18 21.87 117.01 20.63 0.32 1.67 30.93
Converted Last 3 Mths (no MHC)(1) 20.95 82.36 16.32 82.36 20.95 0.00 0.00 0.00
Actively Traded Companies(15) 14.65 179.17 16.91 173.96 16.95 0.50 2.03 30.20
Market Value Below $20 Million(4) 15.81 116.82 12.53 117.39 15.81 0.42 2.11 34.47
Holding Company Structure(43) 17.22 152.05 18.35 150.72 18.15 0.36 1.70 29.29
Assets Over $1 Billion(18) 18.28 179.22 20.15 172.46 19.57 0.53 1.81 36.44
Assets $500 Million-$1 Billion(10) 14.48 164.76 14.44 168.82 16.21 0.31 1.88 26.57
Assets $250-$500 Million(12) 15.31 149.02 16.70 151.68 15.96 0.24 1.41 21.65
Assets less than $250 Million(16) 17.48 138.41 16.83 140.71 17.86 0.32 1.77 26.58
Goodwill Companies(29) 16.20 164.91 16.09 164.27 18.42 0.34 1.61 27.25
Non-Goodwill Companies(27) 17.26 148.87 18.82 148.87 16.99 0.38 1.82 29.82
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1994 or 1995.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and
assets balances; ROI (return on investment) is current EPS divided by
current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(19) 13.95 13.75 0.90 7.09 3.54 0.87 6.72 0.47 159.83 0.82
BIF-Insured Thrifts(3) 13.36 12.32 1.06 8.99 4.62 0.81 6.33 0.76 125.67 1.14
NASDAQ Listed OTC Companies(22) 13.86 13.53 0.93 7.38 3.71 0.86 6.66 0.52 154.44 0.87
Florida Companies(2) 6.70 6.50 0.66 8.52 4.04 0.57 7.32 0.27 78.51 0.34
Mid-Atlantic Companies(12) 12.88 12.59 0.85 7.00 3.65 0.82 6.63 0.55 141.41 0.80
Mid-West Companies(5) 12.75 12.38 0.86 6.94 3.39 0.79 6.30 0.43 190.09 0.57
New England Companies(2) 21.22 20.56 1.55 11.15 4.60 1.28 8.04 0.65 203.93 2.05
South-East Companies(1) 22.48 22.48 1.13 5.02 3.44 1.13 5.02 0.50 132.06 0.96
Thrift Strategy(20) 14.44 14.19 0.92 6.84 3.64 0.88 6.50 0.50 159.82 0.81
Mortgage Banker Strategy(1) 8.13 7.30 0.88 10.96 3.10 0.72 8.96 0.66 60.54 0.97
Diversified Strategy(1) 9.23 7.91 1.18 13.45 5.52 0.63 7.22 0.70 156.79 1.72
Companies Issuing Dividends(18) 12.78 12.37 0.88 7.65 3.52 0.80 6.77 0.57 133.03 0.91
Companies Without Dividends(4) 18.20 18.20 1.11 6.28 4.44 1.10 6.22 0.24 268.62 0.69
Equity/Assets 6-12%(12) 9.33 8.73 0.76 8.16 3.49 0.65 6.88 0.64 86.05 0.80
Equity/Assets greater than 12%(10) 19.40 19.40 1.13 6.42 3.97 1.13 6.39 0.34 248.47 0.94
Holding Company Structure(4) 13.42 12.98 0.96 7.39 4.60 0.89 6.80 0.61 90.35 0.63
Assets Over $1 Billion(5) 10.40 9.74 0.96 9.77 4.06 0.79 7.84 0.48 121.45 0.98
Assets $500 Million-$1 Billion(3) 20.21 19.46 1.30 8.58 3.63 1.30 8.62 0.53 176.72 1.51
Assets $250-$500 Million(5) 12.32 12.32 0.78 6.27 2.96 0.76 6.01 0.48 201.54 0.60
Assets less than $250 Million(9) 15.41 15.18 0.91 6.28 3.97 0.86 5.84 0.55 145.93 0.80
Goodwill Companies(7) 9.74 8.80 0.87 9.15 3.85 0.73 7.60 0.65 92.25 0.81
Non-Goodwill Companies(15) 16.08 16.08 0.96 6.42 3.63 0.93 6.15 0.46 183.14 0.89
MHC Institutions(22) 13.86 13.53 0.93 7.38 3.71 0.86 6.66 0.52 154.44 0.87
MHC Converted Last 3 Months(2) 14.86 14.86 0.96 6.63 4.95 0.96 6.63 0.35 82.98 0.51
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(19) 25.97 192.80 24.53 190.49 26.66 0.31 1.64 38.01
BIF-Insured Thrifts(3) 22.01 175.33 22.23 197.79 27.37 0.35 1.48 29.54
NASDAQ Listed OTC Companies(22) 25.06 190.18 24.19 191.64 26.77 0.31 1.62 36.42
Florida Companies(2) 24.77 203.69 13.65 209.98 28.80 1.00 3.77 0.00
Mid-Atlantic Companies(12) 24.44 192.92 23.08 186.64 25.96 0.22 1.35 33.71
Mid-West Companies(5) 27.78 199.30 23.99 214.04 27.66 0.35 1.51 33.40
New England Companies(2) 22.62 170.83 32.16 188.01 27.13 0.52 2.34 49.46
South-East Companies(1) 29.07 146.03 32.83 146.03 29.07 0.20 1.60 46.51
Thrift Strategy(20) 25.64 181.70 24.34 188.99 26.77 0.29 1.55 34.74
Mortgage Banker Strategy(1) 0.00 328.10 26.67 0.00 0.00 0.22 1.24 40.00
Diversified Strategy(1) 18.12 205.01 18.92 239.36 0.00 0.84 3.11 56.38
Companies Issuing Dividends(18) 25.96 201.35 23.49 203.95 28.08 0.39 2.02 48.56
Companies Without Dividends(4) 22.04 145.50 26.96 145.50 22.38 0.00 0.00 0.00
Equity/Assets 6-12%(12) 25.19 225.07 20.61 231.34 28.52 0.43 2.00 47.23
Equity/Assets greater than 12%(10) 24.95 147.53 28.56 147.53 25.67 0.17 1.15 25.62
Holding Company Structure(4) 20.92 167.71 21.42 175.97 23.20 0.21 1.03 10.75
Assets Over $1 Billion(5) 23.89 230.79 22.03 224.89 27.51 0.44 1.88 33.18
Assets $500 Million-$1 Billion(3) 27.57 180.40 30.77 209.88 27.45 0.34 1.52 41.97
Assets $250-$500 Million(5) 26.52 213.35 25.07 213.35 26.52 0.36 1.84 29.03
Assets less than $250 Million(9) 24.75 152.76 23.34 156.89 26.29 0.20 1.34 38.50
Goodwill Companies(7) 24.82 225.93 21.04 236.52 28.89 0.41 1.74 34.40
Non-Goodwill Companies(15) 25.21 170.93 25.88 170.93 25.83 0.26 1.55 37.64
MHC Institutions(22) 25.06 190.18 24.19 191.64 26.77 0.31 1.62 36.42
MHC Converted Last 3 Months(2) 14.86 139.91 21.02 139.91 14.86 0.00 0.00 0.00
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1994 or 1995.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month common earnings and average common equity and
assets balances; ROI (return on investment) is current EPS divided by
current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NYSE Traded Companies
- ---------------------
AHM Ahmanson and Co. H.F. of CA(8) 5.45 4.01 0.81 18.46 5.98 0.76 17.41 1.72 52.05 1.33
BYS Bay State Bancorp of MA* 20.71 20.71 0.92 4.44 4.33 0.92 4.44 0.71 122.32 1.06
CFB Commercial Federal Corp. of NE 6.91 6.05 0.81 12.92 5.53 0.96 15.18 0.78 86.50 0.88
DME Dime Bancorp, Inc. of NY* 5.90 4.83 0.72 12.67 4.89 0.58 10.22 1.03 50.85 0.69
DSL Downey Financial Corp. of CA 7.60 7.51 0.87 12.03 6.63 0.89 12.30 0.84 65.10 0.60
FED FirstFed Fin. Corp. of CA 5.72 5.67 0.63 12.25 6.65 0.61 11.85 0.84 256.41 2.80
GSB Golden State Bancorp of CA(8) 6.04 5.44 0.66 11.63 9.19 0.71 12.55 0.86 100.48 1.12
GDW Golden West Fin. Corp. of CA 7.10 7.10 0.95 14.36 7.62 0.95 14.41 0.97 63.28 0.86
GPT GreenPoint Fin. Corp. of NY* 9.67 5.40 1.07 10.71 5.17 1.11 11.08 2.54 33.98 1.22
JSB JSB Financial, Inc. of NY* 23.82 23.82 1.88 7.89 6.05 1.67 7.02 0.16 238.05 0.54
OCN Ocwen Financial Corp. of FL 13.08 12.40 2.84 24.09 7.62 0.55 4.68 NA NA 1.31
SIB Staten Island Bancorp of NY* 26.20 25.53 0.86 5.00 2.23 1.59 9.19 0.61 87.17 1.27
WES Westcorp Inc. of Orange CA 8.73 8.71 0.45 4.96 6.46 -0.60 -6.61 0.60 162.80 2.22
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 15.34 15.34 1.07 6.43 5.78 1.00 6.04 0.29 320.59 1.26
ANE Alliance Bncp of New Eng of CT* 7.97 7.78 0.89 12.20 7.10 0.52 7.15 0.53 229.26 1.84
BKC American Bank of Waterbury CT* 9.02 8.73 1.33 15.35 7.41 1.11 12.89 2.10 42.28 1.50
BFD BostonFed Bancorp of MA 7.87 7.59 0.72 8.46 6.75 0.61 7.16 0.17 413.47 0.84
CNY Carver Bancorp, Inc. of NY 8.12 7.84 0.25 2.99 3.87 0.22 2.65 NA NA 1.28
CBK Citizens First Fin.Corp. of IL 13.84 13.84 0.72 5.11 4.80 0.45 3.21 0.67 54.73 0.45
EFC EFC Bancorp Inc of IL 23.77 23.77 1.07 4.51 4.98 1.07 4.51 0.53 57.48 0.42
EBI Equality Bancorp, Inc. of MO 10.11 10.11 0.55 6.76 3.53 0.03 0.41 0.36 37.97 0.37
ESX Essex Bancorp of Norfolk VA(8) 0.02 -0.08 -0.11 NM -7.43 -0.11 NM 1.26 76.64 1.11
FCB Falmouth Bancorp, Inc. of MA* 22.41 22.41 1.02 4.33 3.78 0.81 3.44 NA NA 0.65
FAB FirstFed America Bancorp of MA 9.91 9.91 0.62 5.39 4.82 0.52 4.54 0.29 293.25 1.24
GAF GA Financial Corp. of PA 14.01 13.88 1.09 7.25 6.87 1.03 6.81 0.24 75.96 0.46
HBS Haywood Bancshares, Inc. of NC* 14.85 14.38 1.46 10.18 8.69 1.46 10.18 0.60 82.40 0.66
KNK Kankakee Bancorp, Inc. of IL 9.64 8.02 0.86 8.00 7.36 0.84 7.78 1.12 53.91 0.97
KYF Kentucky First Bancorp of KY 17.04 17.04 1.13 6.76 5.64 1.11 6.68 0.18 263.19 0.76
NBN Northeast Bancorp of ME* 7.00 6.36 0.67 9.52 6.02 0.66 9.41 1.08 90.28 1.12
NEP Northeast PA Fin. Corp of PA 18.94 18.94 -0.93 -6.80 -4.92 0.57 4.19 0.23 182.16 0.72
PDB Piedmont Bancorp, Inc. of NC 16.09 16.09 1.24 7.56 5.77 1.24 7.56 0.71 102.48 0.89
SSB Scotland Bancorp, Inc. of NC 24.70 24.70 1.47 5.01 5.48 1.47 5.01 NA NA 0.57
SZB SouthFirst Bancshares of AL 10.08 9.83 0.55 4.66 4.03 0.51 4.33 1.56 29.54 0.74
SRN Southern Banc Company of AL 17.39 17.27 0.49 2.86 2.87 0.49 2.86 NA NA 0.19
SSM Stone Street Bancorp of NC 27.99 27.99 1.38 4.56 4.74 1.38 4.56 NA NA 0.64
TSH Teche Holding Company of LA 13.83 13.83 0.93 6.90 6.41 0.92 6.84 0.18 460.90 0.98
FTF Texarkana Fst. Fin. Corp of AR 15.23 15.23 1.76 11.38 6.85 1.73 11.19 0.12 445.58 0.67
THR Three Rivers Fin. Corp. of MI 13.53 13.48 0.88 6.44 5.69 0.81 5.99 1.00 48.12 0.74
WSB Washington SB, FSB of MD 8.42 8.42 0.73 8.64 7.73 0.50 5.89 NA NA 1.02
WFI Winton Financial Corp. of OH 7.17 7.03 1.05 14.60 5.66 0.86 12.04 NA NA NA
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN(8) 9.02 8.87 0.75 8.79 4.04 0.51 5.99 1.84 30.69 0.77
FBER 1st Bergen Bancorp of NJ 11.69 11.69 0.74 5.38 5.56 0.74 5.38 0.96 111.28 2.41
AFED AFSALA Bancorp, Inc. of NY(8) 12.13 12.13 0.75 5.81 5.09 0.77 5.93 0.33 205.73 1.42
ALBK ALBANK Fin. Corp. of Albany NY(8) 8.97 7.02 1.16 12.73 5.53 1.15 12.62 0.85 84.14 1.04
AMFC AMB Financial Corp. of IN 14.10 14.10 1.02 6.92 7.05 0.58 3.93 0.19 214.55 0.52
ASBP ASB Financial Corp. of OH 15.20 15.20 0.96 6.17 5.18 0.94 6.08 0.14 513.38 1.03
ABBK Abington Bancorp of MA* 6.29 5.72 0.86 12.70 7.52 0.73 10.79 0.14 353.60 0.77
AABC Access Anytime Bancorp of NM 8.09 8.09 1.45 18.31 13.13 1.35 17.02 0.08 535.05 0.67
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NYSE Traded Companies
- ---------------------
AHM Ahmanson and Co. H.F. of CA(8) 16.71 222.10 12.10 301.86 17.73 0.88 1.50 25.14
BYS Bay State Bancorp of MA* 23.10 102.49 21.22 102.49 23.10 0.00 0.00 0.00
CFB Commercial Federal Corp. of NE 18.10 184.59 12.76 211.09 15.40 0.22 0.85 15.38
DME Dime Bancorp, Inc. of NY* 20.45 230.39 13.60 281.54 25.37 0.20 0.76 15.50
DSL Downey Financial Corp. of CA 15.07 170.95 12.99 172.91 14.74 0.32 1.18 17.78
FED FirstFed Fin. Corp. of CA 15.04 168.80 9.65 170.04 15.55 0.00 0.00 0.00
GSB Golden State Bancorp of CA(8) 10.88 117.89 7.12 130.71 10.08 0.00 0.00 0.00
GDW Golden West Fin. Corp. of CA 13.12 173.90 12.34 173.90 13.08 0.50 0.59 7.72
GPT GreenPoint Fin. Corp. of NY* 19.34 214.34 20.73 NM 18.68 0.64 1.95 37.65
JSB JSB Financial, Inc. of NY* 16.54 130.52 31.08 130.52 18.59 1.60 3.24 53.51
OCN Ocwen Financial Corp. of FL 13.13 247.96 32.42 261.46 NM 0.00 0.00 0.00
SIB Staten Island Bancorp of NY* NM 124.50 32.62 127.80 24.44 0.32 1.66 74.42
WES Westcorp Inc. of Orange CA 15.48 77.26 6.74 77.44 NM 0.20 2.05 31.75
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 17.31 112.69 17.28 112.69 18.41 0.44 2.17 37.61
ANE Alliance Bncp of New Eng of CT* 14.08 154.87 12.35 158.68 24.02 0.20 1.63 22.99
BKC American Bank of Waterbury CT* 13.50 188.59 17.01 194.81 16.07 0.80 3.39 45.71
BFD BostonFed Bancorp of MA 14.81 127.82 10.06 132.58 17.50 0.40 2.08 30.77
CNY Carver Bancorp, Inc. of NY 25.84 75.72 6.15 78.48 29.08 0.00 0.00 0.00
CBK Citizens First Fin.Corp. of IL 20.83 106.00 14.67 106.00 NM 0.00 0.00 0.00
EFC EFC Bancorp Inc of IL 20.09 90.58 21.54 90.58 20.09 0.00 0.00 0.00
EBI Equality Bancorp, Inc. of MO 28.33 135.28 13.68 135.28 NM 0.24 1.73 48.98
ESX Essex Bancorp of Norfolk VA(8) NM NM 1.48 NM NM 0.00 0.00 NM
FCB Falmouth Bancorp, Inc. of MA* 26.47 111.18 24.91 111.18 NM 0.24 1.33 35.29
FAB FirstFed America Bancorp of MA 20.73 110.75 10.97 110.75 24.64 0.20 1.18 24.39
GAF GA Financial Corp. of PA 14.55 106.36 14.90 107.31 15.49 0.56 3.32 48.28
HBS Haywood Bancshares, Inc. of NC* 11.51 112.13 16.65 115.78 11.51 0.60 2.96 34.09
KNK Kankakee Bancorp, Inc. of IL 13.58 107.02 10.32 128.63 13.96 0.48 1.61 21.82
KYF Kentucky First Bancorp of KY 17.72 124.56 21.22 124.56 17.95 0.50 3.57 63.29
NBN Northeast Bancorp of ME* 16.62 140.23 9.82 154.36 16.83 0.21 1.54 25.61
NEP Northeast PA Fin. Corp of PA NM 93.27 17.67 93.27 NM 0.00 0.00 NM
PDB Piedmont Bancorp, Inc. of NC 17.33 127.16 20.46 127.16 17.33 0.48 4.86 NM
SSB Scotland Bancorp, Inc. of NC 18.26 115.42 28.51 115.42 18.26 0.20 2.19 40.00
SZB SouthFirst Bancshares of AL 24.83 102.78 10.36 105.40 26.74 0.60 3.45 NM
SRN Southern Banc Company of AL NM 97.86 17.02 98.58 NM 0.35 2.39 NM
SSM Stone Street Bancorp of NC 21.10 100.18 28.04 100.18 21.10 0.46 2.73 57.50
TSH Teche Holding Company of LA 15.60 103.79 14.35 103.79 15.74 0.50 2.94 45.87
FTF Texarkana Fst. Fin. Corp of AR 14.60 161.40 24.58 161.40 14.85 0.56 2.14 31.28
THR Three Rivers Fin. Corp. of MI 17.57 110.39 14.93 110.80 18.88 0.44 2.48 43.56
WSB Washington SB, FSB of MD 12.93 109.21 9.20 109.21 18.97 0.10 1.76 22.73
WFI Winton Financial Corp. of OH 17.66 243.62 17.48 248.77 21.41 0.25 1.77 31.25
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN(8) 24.73 209.89 18.93 213.37 NM 0.27 0.60 14.84
FBER 1st Bergen Bancorp of NJ 17.99 103.15 12.06 103.15 17.99 0.28 1.90 34.15
AFED AFSALA Bancorp, Inc. of NY(8) 19.65 117.17 14.21 117.17 19.23 0.28 1.57 30.77
ALBK ALBANK Fin. Corp. of Albany NY(8) 18.07 216.29 19.40 276.50 18.24 0.84 1.40 25.30
AMFC AMB Financial Corp. of IN 14.19 96.33 13.58 96.33 25.00 0.28 1.78 25.23
ASBP ASB Financial Corp. of OH 19.32 119.38 18.14 119.38 19.62 0.40 3.14 60.61
ABBK Abington Bancorp of MA* 13.29 171.09 10.76 188.20 15.65 0.20 1.19 15.87
AABC Access Anytime Bancorp of NM 7.62 128.63 10.40 128.63 8.19 0.00 0.00 0.00
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
AFBC Advance Fin. Bancorp of WV 14.09 14.09 0.90 5.94 5.65 0.85 5.61 0.60 51.29 0.35
ALBC Albion Banc Corp. of Albion NY 8.54 8.54 0.48 5.58 4.62 0.45 5.20 0.47 72.86 0.45
ABCL Alliance Bancorp, Inc. of IL 8.59 8.50 0.89 9.74 5.07 0.91 9.92 0.13 240.27 0.47
ALLB Alliance Bank MHC of PA (19.9) 10.72 10.72 0.80 7.09 2.92 0.80 7.09 1.06 45.21 0.88
AHCI Ambanc Holding Co., Inc. of NY* 11.69 11.69 0.50 4.16 4.12 0.41 3.36 0.60 120.40 1.26
ASBI Ameriana Bancorp of IN 11.64 11.42 0.96 8.54 6.27 0.82 7.29 0.56 54.99 0.43
ABCW Anchor Bancorp Wisconsin of WI 6.40 6.30 1.06 16.55 5.43 0.94 14.75 0.58 180.99 1.29
ANDB Andover Bancorp, Inc. of MA* 7.93 7.93 1.06 13.16 6.37 1.04 12.85 0.38 195.38 1.00
ASFC Astoria Financial Corp. of NY 7.96 5.63 0.81 10.32 6.31 0.75 9.49 0.45 72.22 0.77
AVND Avondale Fin. Corp. of IL 7.60 7.60 -0.78 -9.51 -10.74 -0.56 -6.84 1.25 84.71 2.83
BCSB BCSB Bankcorp MHC of MD (38.6) 16.27 16.27 0.80 4.95 3.16 0.80 4.95 NA NA 0.56
BKCT Bancorp Connecticut of CT* 10.04 10.04 1.43 13.71 6.82 1.23 11.80 0.61 181.32 2.10
BPLS Bank Plus Corp. of CA 4.40 4.02 0.31 6.79 6.05 0.36 7.89 1.75 69.27 1.79
BNKU Bank United Corp. of TX 4.98 4.50 0.87 17.22 8.60 0.82 16.38 0.68 50.76 0.46
BWFC Bank West Fin. Corp. of MI 12.99 12.99 0.66 4.68 3.35 0.53 3.76 0.58 28.97 0.24
BANC BankAtlantic Bancorp of FL 6.16 5.16 0.90 15.08 6.38 0.38 6.40 0.81 100.62 1.12
BKUNA BankUnited Fin. Corp. of FL 4.38 3.80 0.27 6.74 3.39 0.21 5.24 0.46 37.03 0.21
BVCC Bay View Capital Corp. of CA 7.28 4.66 0.39 6.08 3.04 0.60 9.47 0.38 218.38 1.06
FSNJ Bayonne Banchsares of NJ(8) 15.27 15.27 0.72 5.61 3.21 0.72 5.61 0.44 96.50 0.92
BFSB Bedford Bancshares, Inc. of VA 13.30 13.30 1.19 8.45 5.38 1.19 8.45 0.21 232.62 0.60
BFFC Big Foot Fin. Corp. of IL 18.28 18.28 0.52 2.95 2.79 0.45 2.55 0.09 150.75 0.28
BYFC Broadway Fin. Corp. of CA 10.13 10.13 0.48 4.66 6.58 0.33 3.20 1.15 68.56 0.97
BRKL Brookline Bncp MHC of MA(47.0) 33.21 33.21 1.92 8.85 3.69 1.92 8.85 0.60 251.07 2.37
CBES CBES Bancorp, Inc. of MO 14.23 14.23 1.04 6.29 6.00 0.86 5.22 NA NA 0.58
CCFH CCF Holding Company of GA 8.09 8.09 0.14 1.36 0.88 -0.13 -1.21 0.36 137.94 0.68
CITZ CFS Bancorp, Inc. of IN 17.41 17.41 0.58 3.31 3.60 0.64 3.68 0.67 42.30 0.81
CFSB CFSB Bancorp of Lansing MI 7.72 7.72 1.32 17.10 6.09 1.20 15.61 0.21 272.22 0.64
CKFB CKF Bancorp of Danville KY 21.34 21.34 1.87 8.18 7.83 1.42 6.19 0.54 40.24 0.24
CNSB CNS Bancorp, Inc. of MO 24.68 24.68 0.91 3.68 3.66 0.84 3.41 0.07 569.23 0.57
CSBF CSB Financial Group Inc of IL 23.13 21.83 0.51 2.22 2.82 0.44 1.92 1.13 34.83 0.69
CBCI Calumet Bancorp of Chicago IL 17.49 17.49 2.08 12.70 11.11 2.09 12.74 1.21 99.71 1.56
CAFI Camco Fin. Corp. of OH 9.89 9.28 1.26 13.11 6.94 0.95 9.89 0.72 39.75 0.34
CMRN Cameron Fin. Corp. of MO 20.78 20.78 1.16 5.38 5.80 1.14 5.27 1.06 67.46 0.87
CFNC Carolina Fincorp of NC* 22.35 22.35 0.92 4.05 5.43 1.06 4.64 0.14 283.77 0.51
CASB Cascade Financial Corp. of WA 6.99 6.99 0.78 11.77 5.21 0.73 11.13 0.54 171.37 1.07
CATB Catskill Fin. Corp. of NY* 23.42 23.42 1.33 5.33 5.40 1.31 5.27 0.22 282.65 1.43
CAVB Cavalry Bancorp of TN 28.43 28.43 1.48 7.18 3.10 1.02 4.98 0.05 NA 1.26
CNIT Cenit Bancorp of Norfolk VA 6.88 6.34 0.90 12.76 6.02 0.83 11.86 0.19 316.10 0.75
CEBK Central Co-Op. Bank of MA* 9.78 8.88 0.86 8.65 7.38 0.67 6.70 0.40 188.70 1.00
CENB Century Bancorp, Inc. of NC(8) 17.75 17.75 1.33 4.81 7.78 1.33 4.81 0.37 144.73 0.82
COFI Charter One Financial of OH 7.37 6.91 0.88 12.53 4.00 1.21 17.25 0.38 148.17 0.84
CVAL Chester Valley Bancorp of PA 8.66 8.66 1.03 11.92 4.54 0.93 10.83 0.33 274.00 1.23
CLAS Classic Bancshares, Inc. of KY 15.57 13.35 0.77 5.13 4.73 0.97 6.44 0.29 216.16 0.92
CBSA Coastal Bancorp of Houston TX 3.73 3.21 0.49 13.93 9.33 0.50 14.30 0.49 61.08 0.62
CFCP Coastal Fin. Corp. of SC 6.03 6.03 1.23 19.92 5.42 1.01 16.44 0.48 188.30 1.31
CFKY Columbia Financial of KY 28.28 28.28 0.93 3.28 3.26 0.91 3.20 0.40 63.42 0.48
CMSB Commonwealth Bancorp Inc of PA 9.13 7.30 0.67 7.17 5.97 0.51 5.38 0.41 97.65 0.66
CMSV Commty. Svgs, MHC of FL (48.5)(8) 10.80 10.80 0.74 6.58 3.61 0.68 6.07 0.27 133.22 0.52
CFTP Community Fed. Bancorp of MS 23.66 23.66 1.18 4.32 3.58 1.15 4.17 0.28 78.26 0.41
CFFC Community Fin. Corp. of VA 13.87 13.82 1.01 7.37 5.38 1.01 7.37 1.30 48.66 0.71
CIBI Community Inv. Bancorp of OH 10.98 10.98 0.94 8.14 5.13 0.94 8.14 0.56 98.23 0.66
COOP Cooperative Bancshares of NC 7.63 7.63 0.63 8.22 5.00 0.57 7.46 0.08 330.28 0.34
CRZY Crazy Woman Creek Bncorp of WY 23.58 23.58 1.28 5.18 5.40 1.28 5.18 0.13 355.84 0.92
CRSB Crusader Holding Corp of PA 10.94 10.94 1.84 32.74 5.10 1.69 30.09 0.96 44.19 0.50
DNFC D&N Financial Corp. of MI 5.44 5.40 0.87 15.81 7.33 0.77 13.97 0.50 113.36 0.83
DCBI Delphos Citizens Bancorp of OH 24.96 24.96 1.58 5.87 5.72 1.58 5.87 0.64 15.93 0.12
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
AFBC Advance Fin. Bancorp of WV 17.70 108.47 15.29 108.47 18.75 0.32 2.03 35.96
ALBC Albion Banc Corp. of Albion NY 21.67 117.75 10.06 117.75 23.21 0.12 1.23 26.67
ABCL Alliance Bancorp, Inc. of IL 19.72 186.15 15.99 188.27 19.37 0.44 2.05 40.37
ALLB Alliance Bank MHC of PA (19.9) NM 237.96 25.50 237.96 NM 0.36 1.69 58.06
AHCI Ambanc Holding Co., Inc. of NY* 24.29 101.76 11.89 101.76 NM 0.24 1.59 38.71
ASBI Ameriana Bancorp of IN 15.95 133.09 15.49 135.63 18.69 0.64 3.46 55.17
ABCW Anchor Bancorp Wisconsin of WI 18.43 295.54 18.91 300.14 20.67 0.40 0.94 17.39
ANDB Andover Bancorp, Inc. of MA* 15.70 195.46 15.50 195.46 16.08 0.72 2.17 34.12
ASFC Astoria Financial Corp. of NY 15.84 132.38 10.53 187.07 17.23 0.80 1.85 29.30
AVND Avondale Fin. Corp. of IL NM 94.56 7.19 94.56 NM 0.00 0.00 NM
BCSB BCSB Bankcorp MHC of MD (38.6) NM 156.32 25.44 156.32 NM 0.00 0.00 0.00
BKCT Bancorp Connecticut of CT* 14.66 189.81 19.06 189.81 17.03 0.54 3.02 44.26
BPLS Bank Plus Corp. of CA 16.53 107.11 4.71 117.01 14.24 0.00 0.00 0.00
BNKU Bank United Corp. of TX 11.63 185.05 9.22 204.76 12.22 0.64 1.67 19.45
BWFC Bank West Fin. Corp. of MI 29.88 137.18 17.82 137.18 NM 0.24 1.96 58.54
BANC BankAtlantic Bancorp of FL 15.67 193.24 11.90 230.65 NM 0.10 0.87 13.70
BKUNA BankUnited Fin. Corp. of FL 29.53 129.63 5.68 149.51 NM 0.00 0.00 0.00
BVCC Bay View Capital Corp. of CA NM 116.74 8.50 182.40 21.11 0.40 1.79 58.82
FSNJ Bayonne Banchsares of NJ(8) NM 137.70 21.03 137.70 NM 0.25 1.67 52.08
BFSB Bedford Bancshares, Inc. of VA 18.58 151.02 20.08 151.02 18.58 0.32 2.39 44.44
BFFC Big Foot Fin. Corp. of IL NM 103.35 18.89 103.35 NM 0.00 0.00 0.00
BYFC Broadway Fin. Corp. of CA 15.19 69.73 7.06 69.73 22.09 0.19 1.95 29.69
BRKL Brookline Bncp MHC of MA(47.0) 27.13 136.66 45.39 136.66 27.13 0.20 1.57 42.55
CBES CBES Bancorp, Inc. of MO 16.67 110.61 15.74 110.61 20.10 0.48 2.46 41.03
CCFH CCF Holding Company of GA NM 158.55 12.82 158.55 NM 0.64 3.12 NM
CITZ CFS Bancorp, Inc. of IN 27.78 91.91 16.00 91.91 25.00 0.00 0.00 0.00
CFSB CFSB Bancorp of Lansing MI 16.42 281.25 21.72 281.25 18.00 0.52 2.31 37.96
CKFB CKF Bancorp of Danville KY 12.78 109.72 23.42 109.72 16.87 0.54 3.11 39.71
CNSB CNS Bancorp, Inc. of MO 27.31 100.82 24.88 100.82 29.50 0.30 2.03 55.56
CSBF CSB Financial Group Inc of IL NM 78.62 18.19 83.31 NM 0.00 0.00 0.00
CBCI Calumet Bancorp of Chicago IL 9.00 107.26 18.76 107.26 8.97 0.00 0.00 0.00
CAFI Camco Fin. Corp. of OH 14.41 163.62 16.19 174.36 19.10 0.39 2.29 33.05
CMRN Cameron Fin. Corp. of MO 17.25 91.46 19.01 91.46 17.60 0.28 1.62 28.00
CFNC Carolina Fincorp of NC* 18.42 72.93 16.30 72.93 16.08 0.24 2.37 43.64
CASB Cascade Financial Corp. of WA 19.18 196.63 13.74 196.63 20.29 0.00 0.00 0.00
CATB Catskill Fin. Corp. of NY* 18.53 101.94 23.87 101.94 18.75 0.37 2.35 43.53
CAVB Cavalry Bancorp of TN NM 151.17 42.97 151.17 NM 0.20 1.00 32.26
CNIT Cenit Bancorp of Norfolk VA 16.60 210.19 14.46 228.00 17.86 0.40 1.88 31.25
CEBK Central Co-Op. Bank of MA* 13.55 112.18 10.97 123.53 17.50 0.32 1.52 20.65
CENB Century Bancorp, Inc. of NC(8) 12.86 93.48 16.60 93.48 12.86 0.68 4.99 64.15
COFI Charter One Financial of OH 25.00 253.78 18.70 270.40 18.15 0.56 1.96 49.12
CVAL Chester Valley Bancorp of PA 22.03 246.09 21.32 246.09 24.23 0.44 1.40 30.77
CLAS Classic Bancshares, Inc. of KY 21.15 105.10 16.36 122.59 16.84 0.32 1.94 41.03
CBSA Coastal Bancorp of Houston TX 10.71 138.60 5.16 160.71 10.44 0.32 1.58 16.93
CFCP Coastal Fin. Corp. of SC 18.45 338.08 20.38 338.08 22.35 0.28 1.47 27.18
CFKY Columbia Financial of KY NM 100.60 28.45 100.60 NM 0.28 2.07 63.64
CMSB Commonwealth Bancorp Inc of PA 16.75 118.79 10.84 148.62 22.33 0.32 1.91 32.00
CMSV Commty. Svgs, MHC of FL (48.5)(8) 27.67 176.91 19.11 176.91 30.00 0.90 3.16 NM
CFTP Community Fed. Bancorp of MS 27.92 122.53 28.99 122.53 28.88 0.32 1.91 53.33
CFFC Community Fin. Corp. of VA 18.57 130.92 18.16 131.45 18.57 0.28 2.15 40.00
CIBI Community Inv. Bancorp of OH 19.49 158.30 17.39 158.30 19.49 0.24 1.81 35.29
COOP Cooperative Bancshares of NC 20.00 155.93 11.90 155.93 22.06 0.00 0.00 0.00
CRZY Crazy Woman Creek Bncorp of WY 18.52 94.45 22.27 94.45 18.52 0.40 2.73 50.63
CRSB Crusader Holding Corp of PA 19.59 250.87 27.45 250.87 21.32 0.00 0.00 0.00
DNFC D&N Financial Corp. of MI 13.65 200.45 10.91 202.09 15.45 0.20 0.90 12.27
DCBI Delphos Citizens Bancorp of OH 17.47 106.84 26.67 106.84 17.47 0.24 1.48 25.81
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
DCOM Dime Community Bancorp of NY* 12.01 10.44 0.83 6.19 4.17 0.78 5.80 0.39 189.26 1.27
DIBK Dime Financial Corp. of CT(8)* 8.11 7.92 1.70 21.03 9.28 1.69 20.89 0.28 406.83 3.15
ESBF ESB Financial Corp of PA 7.20 6.42 0.69 9.08 6.24 0.69 9.08 0.60 83.44 1.34
EGLB Eagle BancGroup of IL 11.47 11.47 0.34 2.87 2.78 0.17 1.43 0.73 75.47 0.82
EBSI Eagle Bancshares of Tucker GA 6.50 6.50 0.78 10.06 5.77 0.78 10.15 1.20 49.97 0.78
ETFS East Texas Fin. Serv. of TX 17.43 17.43 0.60 3.31 3.16 0.54 3.01 0.41 46.61 0.38
ESBK Elmira Svgs Bank (The) of NY* 6.21 6.21 0.44 7.04 5.35 0.47 7.45 0.82 81.26 0.85
EMLD Emerald Financial Corp. of OH 8.26 8.16 1.09 13.91 5.33 1.01 12.83 0.30 86.50 0.32
EFBC Empire Federal Bancorp of MT 36.76 36.76 1.47 4.00 4.91 1.47 4.00 0.01 NA 0.41
EFBI Enterprise Fed. Bancorp of OH 9.96 9.71 0.78 6.96 3.68 0.67 5.95 0.06 333.77 0.30
EQSB Equitable FSB of Wheaton MD 5.18 5.18 0.72 14.02 6.55 0.69 13.56 NA NA NA
FCBF FCB Fin. Corp. of Neenah WI 14.47 14.47 1.24 8.45 5.12 0.92 6.26 0.22 327.68 0.98
FFDF FFD Financial Corp. of OH 22.27 22.27 1.73 7.25 6.51 0.78 3.26 0.08 329.27 0.40
FFLC FFLC Bancorp of Leesburg FL 12.71 12.71 0.98 7.27 5.61 0.92 6.83 0.26 192.43 0.59
FFWC FFW Corporation of Wabash IN 9.58 8.79 1.01 10.46 7.00 0.98 10.12 NA NA NA
FFYF FFY Financial Corp. of OH 13.10 13.10 1.27 9.35 5.61 1.25 9.21 0.51 82.43 0.56
FMCO FMS Financial Corp. of NJ 5.95 5.89 0.90 14.40 6.25 0.90 14.40 0.70 68.77 1.07
FFHH FSF Financial Corp. of MN 10.40 10.40 0.83 7.46 6.42 0.81 7.26 0.20 123.88 0.37
FOBC Fed One Bancorp of Wheeling WV(8) 11.24 10.79 0.86 7.69 3.39 0.86 7.63 0.36 111.72 0.90
FBCI Fidelity Bancorp of Chicago IL 10.79 10.77 0.21 1.99 1.50 0.62 5.92 0.24 45.86 0.14
FSBI Fidelity Bancorp, Inc. of PA 6.84 6.84 0.74 10.90 6.96 0.73 10.74 0.17 330.68 1.05
FFFL Fidelity Bcsh MHC of FL (47.9) 6.70 6.50 0.66 8.52 4.04 0.57 7.32 0.27 78.51 0.34
FFED Fidelity Fed. Bancorp of IN 6.78 6.78 -0.34 -5.64 -4.25 -0.26 -4.29 0.38 613.16 2.77
FFOH Fidelity Financial of OH 12.06 10.68 0.92 7.30 6.11 0.89 7.05 0.26 121.33 0.40
FIBC Financial Bancorp, Inc. of NY(8) 9.04 9.01 0.94 10.24 4.40 0.92 9.99 NA NA NA
FBSI First Bancshares, Inc. of MO 13.43 12.85 1.10 7.89 6.16 1.09 7.80 1.31 23.38 0.36
FBBC First Bell Bancorp of PA 11.22 11.22 1.09 10.37 6.57 1.05 10.01 0.05 191.03 0.13
SKBO First Carnegie MHC of PA(45.0) 16.86 16.86 0.65 4.26 3.17 0.77 5.08 0.59 64.19 0.80
FSTC First Citizens Corp of GA 10.09 8.07 1.91 19.64 7.46 1.73 17.77 1.17 86.37 1.39
FCME First Coastal Corp. of ME* 10.06 10.06 0.85 8.90 7.83 0.75 7.77 0.24 650.60 2.55
FDEF First Defiance Fin.Corp. of OH 17.64 17.64 0.95 4.84 5.23 0.91 4.62 0.29 171.18 0.62
FESX First Essex Bancorp of MA* 7.05 6.21 0.84 11.62 7.16 0.76 10.51 0.45 191.23 1.48
FFSX First FSB MHC Sxld of IA(46.3)(8) 7.21 5.71 0.68 8.31 3.57 0.69 8.38 0.46 102.36 0.64
FFES First Fed of E. Hartford CT 6.92 6.92 0.58 8.73 6.68 0.64 9.66 0.33 84.42 1.30
BDJI First Fed. Bancorp. of MN 10.89 10.89 0.68 6.36 4.97 0.68 6.36 0.18 202.30 0.78
FFBH First Fed. Bancshares of AR 14.77 14.77 0.99 6.58 5.05 0.94 6.22 0.85 20.75 0.23
FTFC First Fed. Capital Corp. of WI 7.17 6.81 1.19 17.61 6.25 0.90 13.38 0.23 212.49 0.75
FFKY First Fed. Fin. Corp. of KY 13.21 12.51 1.63 12.00 6.14 1.59 11.68 0.53 84.57 0.52
FFBZ First Federal Bancorp of OH 7.62 7.61 0.90 11.79 4.83 0.90 11.79 0.54 190.00 1.19
FFCH First Fin. Holdings Inc. of SC 6.36 6.36 0.88 14.03 5.58 0.85 13.65 1.16 56.67 0.80
FFHS First Franklin Corp. of OH 9.24 9.20 0.82 9.01 6.56 0.71 7.80 0.90 49.39 0.69
FGHC First Georgia Hold. Corp of GA 8.09 7.55 1.13 13.67 3.45 1.13 13.67 1.65 37.32 0.71
FFSL First Independence Corp. of KS 9.28 9.28 0.66 6.58 6.45 0.66 6.58 0.56 95.21 0.72
FISB First Indiana Corp. of IN 9.26 9.15 1.15 12.08 6.03 0.87 9.17 1.11 125.92 1.65
FKAN First Kansas Financial of KS 18.69 18.69 0.88 4.71 5.39 0.88 4.71 0.05 327.59 0.43
FKFS First Keystone Fin. Corp of PA 6.67 6.67 0.77 11.25 8.07 0.68 9.96 1.22 36.94 0.87
FLKY First Lancaster Bncshrs of KY 26.64 26.64 1.03 3.44 3.71 1.03 3.44 1.70 18.91 0.36
FLFC First Liberty Fin. Corp. of GA 7.35 6.72 0.77 10.36 3.84 0.80 10.78 0.77 132.28 1.51
CASH First Midwest Fin., Inc. of OH 10.51 9.36 0.73 6.66 5.75 0.66 5.99 1.94 37.96 1.19
FMBD First Mutual Bancorp Inc of IL(8) 14.15 10.96 0.32 2.39 2.16 0.25 1.87 0.33 115.88 0.48
FMSB First Mutual SB of Bellevue WA* 6.79 6.79 1.01 15.06 7.52 0.99 14.77 0.11 989.94 1.26
FNGB First Northern Cap. Corp of WI 11.10 11.10 0.97 8.62 5.62 0.90 8.01 0.12 400.84 0.54
FFPB First Palm Beach Bancorp of FL 6.53 6.39 0.53 8.19 4.52 0.34 5.22 0.51 59.41 0.50
FWWB First Savings Bancorp of WA 13.02 12.06 1.20 8.69 4.98 1.11 8.07 0.43 164.95 1.03
FSFF First SecurityFed Fin of IL 28.92 28.84 1.03 5.32 3.29 1.61 8.33 0.34 170.99 0.94
FSLA First Source Bancorp of NJ 20.55 20.55 1.09 5.31 4.59 1.09 5.31 0.35 159.84 1.04
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
DCOM Dime Community Bancorp of NY* 23.96 147.91 17.76 170.12 25.56 0.40 1.74 41.67
DIBK Dime Financial Corp. of CT(8)* 10.78 203.53 16.51 208.49 10.85 0.48 1.51 16.33
ESBF ESB Financial Corp of PA 16.02 137.39 9.89 153.92 16.02 0.36 2.18 34.95
EGLB Eagle BancGroup of IL NM 102.51 11.76 102.51 NM 0.00 0.00 0.00
EBSI Eagle Bancshares of Tucker GA 17.34 167.06 10.86 167.06 17.20 0.64 2.98 51.61
ETFS East Texas Fin. Serv. of TX NM 104.01 18.13 104.01 NM 0.20 1.40 44.44
ESBK Elmira Svgs Bank (The) of NY* 18.71 132.45 8.23 132.45 17.69 0.64 2.46 46.04
EMLD Emerald Financial Corp. of OH 18.75 242.42 20.02 245.40 20.34 0.14 1.17 21.88
EFBC Empire Federal Bancorp of MT 20.38 80.84 29.72 80.84 20.38 0.32 2.42 49.23
EFBI Enterprise Fed. Bancorp of OH 27.18 170.01 16.93 174.35 NM 1.00 3.57 NM
EQSB Equitable FSB of Wheaton MD 15.27 198.94 10.31 198.94 15.78 0.00 0.00 0.00
FCBF FCB Fin. Corp. of Neenah WI 19.54 151.91 21.98 151.91 26.34 0.88 2.98 58.28
FFDF FFD Financial Corp. of OH 15.37 108.55 24.18 108.55 NM 0.30 1.79 27.52
FFLC FFLC Bancorp of Leesburg FL 17.82 129.68 16.48 129.68 18.95 0.36 2.00 35.64
FFWC FFW Corporation of Wabash IN 14.29 137.83 13.21 150.25 14.75 0.42 2.33 33.33
FFYF FFY Financial Corp. of OH 17.82 165.08 21.62 165.08 18.10 0.80 2.30 41.03
FMCO FMS Financial Corp. of NJ 16.00 217.39 12.93 219.38 16.00 0.12 1.00 16.00
FFHH FSF Financial Corp. of MN 15.57 117.57 12.22 117.57 16.01 0.50 2.92 45.45
FOBC Fed One Bancorp of Wheeling WV(8) 29.46 220.80 24.83 230.02 29.69 0.62 1.63 48.06
FBCI Fidelity Bancorp of Chicago IL NM 130.15 14.04 130.36 22.43 0.00 0.00 0.00
FSBI Fidelity Bancorp, Inc. of PA 14.36 145.06 9.92 145.06 14.57 0.36 1.78 25.53
FFFL Fidelity Bcsh MHC of FL (47.9) 24.77 203.69 13.65 209.98 28.80 1.00 3.77 NM
FFED Fidelity Fed. Bancorp of IN NM 137.38 9.31 137.38 NM 0.20 3.40 NM
FFOH Fidelity Financial of OH 16.38 122.42 14.76 138.22 16.96 0.32 2.25 36.78
FIBC Financial Bancorp, Inc. of NY(8) 22.72 224.04 20.26 225.00 23.30 0.50 1.36 30.86
FBSI First Bancshares, Inc. of MO 16.23 123.35 16.56 128.85 16.43 0.12 0.90 14.63
FBBC First Bell Bancorp of PA 15.22 153.11 17.18 153.11 15.77 0.40 2.29 34.78
SKBO First Carnegie MHC of PA(45.0) NM 122.01 20.57 122.01 26.50 0.30 2.26 71.43
FSTC First Citizens Corp of GA 13.41 231.92 23.41 290.07 14.82 0.32 1.08 14.55
FCME First Coastal Corp. of ME* 12.77 108.21 10.89 108.21 14.63 0.00 0.00 0.00
FDEF First Defiance Fin.Corp. of OH 19.14 101.12 17.84 101.12 20.05 0.36 2.85 54.55
FESX First Essex Bancorp of MA* 13.97 157.68 11.11 178.91 15.45 0.56 2.95 41.18
FFSX First FSB MHC Sxld of IA(46.3)(8) 28.02 224.14 16.16 283.10 27.78 0.48 1.48 41.38
FFES First Fed of E. Hartford CT 14.98 124.05 8.58 124.05 13.54 0.68 2.19 32.85
BDJI First Fed. Bancorp. of MN 20.13 125.51 13.67 125.51 20.13 0.00 0.00 0.00
FFBH First Fed. Bancshares of AR 19.82 127.24 18.79 127.24 20.95 0.28 1.27 25.23
FTFC First Fed. Capital Corp. of WI 16.00 261.44 18.75 275.39 21.05 0.28 1.75 28.00
FFKY First Fed. Fin. Corp. of KY 16.28 189.95 25.09 200.57 16.72 0.60 2.42 39.47
FFBZ First Federal Bancorp of OH 20.69 234.38 17.87 234.83 20.69 0.14 1.17 24.14
FFCH First Fin. Holdings Inc. of SC 17.91 229.30 14.58 229.30 18.41 0.42 2.11 37.84
FFHS First Franklin Corp. of OH 15.24 132.89 12.28 133.44 17.58 0.30 1.88 28.57
FGHC First Georgia Hold. Corp of GA 28.95 NM 30.08 NM 28.95 0.00 0.00 0.00
FFSL First Independence Corp. of KS 15.51 101.49 9.42 101.49 15.51 0.30 2.45 37.97
FISB First Indiana Corp. of IN 16.58 191.17 17.70 193.38 21.85 0.48 2.05 34.04
FKAN First Kansas Financial of KS 18.54 87.34 16.32 87.34 18.54 0.00 0.00 0.00
FKFS First Keystone Fin. Corp of PA 12.39 131.58 8.77 131.58 14.00 0.20 1.43 17.70
FLKY First Lancaster Bncshrs of KY 26.96 92.22 24.57 92.22 26.96 0.60 4.36 NM
FLFC First Liberty Fin. Corp. of GA 26.01 258.39 18.99 282.67 25.00 0.30 1.56 40.54
CASH First Midwest Fin., Inc. of OH 17.39 117.15 12.32 131.57 19.32 0.48 2.51 43.64
FMBD First Mutual Bancorp Inc of IL(8) NM 109.53 15.50 141.45 NM 0.32 1.87 NM
FMSB First Mutual SB of Bellevue WA* 13.29 189.61 12.88 189.61 13.55 0.20 1.46 19.42
FNGB First Northern Cap. Corp of WI 17.79 148.94 16.53 148.94 19.14 0.36 2.85 50.70
FFPB First Palm Beach Bancorp of FL 22.14 173.89 11.36 177.71 NM 0.70 1.77 39.11
FWWB First Savings Bancorp of WA 20.09 175.23 22.81 189.08 21.63 0.36 1.60 32.14
FSFF First SecurityFed Fin of IL NM 95.96 27.75 96.22 19.44 0.00 0.00 0.00
FSLA First Source Bancorp of NJ 21.80 115.80 23.80 115.80 21.80 0.18 2.01 43.90
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
SOPN First Svgs Bancorp of NC 23.04 23.04 1.78 7.65 5.83 1.78 7.65 0.18 109.36 0.29
FBNW FirstBank Corp of Clarkston WA 16.36 16.36 1.03 7.72 4.85 0.62 4.67 0.39 160.81 0.78
FFDB FirstFed Bancorp, Inc. of AL 9.71 8.95 0.93 9.56 5.67 0.93 9.56 1.41 41.95 0.90
FSPT FirstSpartan Fin. Corp. of SC 26.29 26.29 1.33 6.93 4.31 1.32 6.88 0.38 111.34 0.51
FLAG Flag Financial Corp of GA 8.89 8.89 0.88 9.49 2.79 0.61 6.57 1.33 65.46 1.22
FLGS Flagstar Bancorp, Inc of MI 5.21 5.04 1.30 21.55 6.84 1.30 21.55 2.26 20.60 0.53
FFIC Flushing Fin. Corp. of NY* 12.72 12.23 0.93 6.62 4.90 0.93 6.62 0.31 198.69 1.00
FBHC Fort Bend Holding Corp. of TX(8) 6.76 6.36 0.65 10.16 5.35 0.46 7.23 0.41 123.80 0.90
FTSB Fort Thomas Fin. Corp. of KY 15.77 15.77 1.23 7.71 6.02 1.23 7.71 1.93 30.61 0.65
FKKY Frankfort First Bancorp of KY 16.95 16.95 0.25 1.31 1.37 0.80 4.26 NA NA 0.08
FTNB Fulton Bancorp, Inc. of MO 23.37 23.37 1.22 5.01 4.17 0.95 3.88 0.70 126.01 1.06
GUPB GFSB Bancorp, Inc of Gallup NM 12.34 12.34 0.91 6.67 5.69 0.91 6.67 0.37 86.67 0.54
GSLA GS Financial Corp. of LA 41.63 41.63 1.43 3.76 4.26 1.28 3.37 0.12 260.11 0.74
GOSB GSB Financial Corp. of NY* 28.14 28.14 0.73 3.54 2.89 0.69 3.36 0.09 NA NA
GBNK Gaston Fed Bncp MHC of NC(47.0 22.48 22.48 1.13 5.02 3.44 1.13 5.02 0.50 132.06 0.96
GFCO Glenway Financial Corp. of OH 9.57 9.49 0.86 9.12 5.10 0.87 9.20 0.19 184.71 0.41
GTPS Great American Bancorp of IL 18.33 18.33 0.66 3.24 3.05 0.66 3.24 0.08 484.87 0.47
PEDE Great Pee Dee Bancorp of SC 45.12 45.12 1.05 2.33 2.87 1.05 2.33 0.73 65.48 0.59
GSFC Green Street Fin. Corp. of NC 35.78 35.78 1.59 4.46 5.11 1.59 4.46 0.07 216.10 0.19
GFED Guaranty Fed Bancshares of MO 28.34 28.34 1.12 5.49 3.09 1.09 5.34 0.35 241.97 1.05
HCBB HCB Bancshares of Camden AR 17.25 17.04 0.33 1.99 1.92 0.33 1.99 0.44 150.91 1.38
HEMT HF Bancorp of Hemet CA 7.86 6.67 -0.04 -0.54 -0.47 0.13 1.62 NA NA NA
HFFC HF Financial Corp. of SD 9.72 9.72 1.09 11.48 7.25 1.01 10.67 0.53 239.17 1.62
HFNC HFNC Financial Corp. of NC(8) 17.24 17.24 1.34 7.36 5.96 0.92 5.05 0.53 131.75 0.86
HMNF HMN Financial, Inc. of MN 11.61 10.79 0.92 6.94 6.95 0.65 4.91 0.09 449.77 0.61
HALL Hallmark Capital Corp. of WI 7.68 7.68 0.67 9.13 7.17 0.64 8.65 0.33 163.10 0.82
HRBF Harbor Federal Bancorp of MD 12.69 12.69 0.75 5.86 4.93 0.72 5.60 0.32 65.53 0.33
HARB Harbor Florida Bancshrs of FL 19.82 19.60 1.25 11.35 4.09 1.20 10.87 0.43 208.24 1.27
HFSA Hardin Bancorp of Hardin MO 11.13 11.13 0.77 6.54 6.16 0.66 5.62 0.14 145.30 0.40
HARL Harleysville SB of PA 6.67 6.67 1.01 15.25 6.88 1.01 15.25 NA NA 0.79
HFGI Harrington Fin. Group of IN 4.42 4.42 -0.02 -0.40 -0.31 0.05 1.06 0.18 40.45 0.22
HARS Harris Fin. MHC of PA (24.9) 8.13 7.30 0.88 10.96 3.10 0.72 8.96 0.66 60.54 0.97
HFFB Harrodsburg 1st Fin Bcrp of KY 26.46 26.46 1.36 5.11 5.13 1.36 5.11 0.55 66.83 0.48
HHFC Harvest Home Fin. Corp. of OH 11.35 11.35 0.62 5.35 4.27 0.62 5.35 0.09 144.19 0.25
HAVN Haven Bancorp of Woodhaven NY 5.65 5.64 0.53 9.13 5.21 0.53 9.05 0.45 132.08 0.97
HTHR Hawthorne Fin. Corp. of CA 4.25 4.25 0.97 21.94 16.72 1.14 25.78 6.67 18.16 1.31
HMLK Hemlock Fed. Fin. Corp. of IL 16.19 16.19 1.00 5.57 5.23 1.00 5.57 0.06 625.00 0.84
HBSC Heritage Bancorp, Inc of SC 28.79 28.79 1.16 4.02 4.46 1.16 4.02 0.44 57.25 0.38
HFWA Heritage Financial Corp of WA 28.80 28.80 1.11 5.92 3.05 0.57 3.04 0.12 761.93 1.28
HCBC High Country Bancorp of CO 19.56 19.56 0.84 5.87 4.33 0.84 5.87 0.45 167.06 0.94
HBNK Highland Bancorp of CA 7.84 7.84 1.30 17.04 7.07 1.13 14.86 1.84 88.38 2.06
HIFS Hingham Inst. for Sav. of MA* 9.48 9.48 1.25 13.13 7.85 1.25 13.13 0.17 396.87 0.90
HBEI Home Bancorp of Elgin IL(8) 25.92 25.92 0.70 2.57 2.48 0.70 2.57 0.28 107.27 0.35
HBFW Home Bancorp of Fort Wayne IN 12.04 12.04 0.86 6.70 4.37 0.84 6.54 0.10 402.90 0.43
HCFC Home City Fin. Corp. of OH 18.58 18.58 1.29 6.57 6.97 1.29 6.57 0.59 97.81 0.63
HOMF Home Fed Bancorp of Seymour IN 9.20 8.95 1.44 16.54 7.68 1.17 13.38 0.59 100.21 0.71
HWEN Home Financial Bancorp of IN 17.99 17.99 0.94 5.32 5.09 0.74 4.18 1.10 68.52 0.93
HLFC Home Loan Financial Corp of OH 38.94 38.94 1.30 5.70 2.49 1.30 5.70 0.29 92.92 0.39
HPBC Home Port Bancorp, Inc. of MA* 9.78 9.78 1.47 14.04 6.72 1.63 15.59 0.26 453.64 1.38
HSTD Homestead Bancorp, Inc. of LA 21.66 21.66 0.75 3.46 4.27 0.75 3.46 0.27 119.47 0.69
HFBC HopFed Bancorp of KY 25.98 25.98 1.12 10.32 3.71 1.12 10.32 0.11 107.86 0.23
HZFS Horizon Fin'l. Services of IA 9.11 9.11 0.91 9.24 6.00 0.70 7.08 0.92 45.20 0.69
HRZB Horizon Financial Corp. of WA* 15.33 15.33 1.56 10.02 7.46 1.54 9.93 0.02 NA 0.88
HRBT Hudson River Bancorp Inc of NY 26.74 26.74 0.90 3.36 3.42 1.03 3.85 1.66 58.37 1.87
ITLA ITLA Capital Corp of CA* 10.18 10.15 1.43 13.50 8.72 1.43 13.50 1.07 139.44 1.75
ICBC Independence Comm Bnk Cp of NY 18.17 17.11 0.42 2.32 2.20 0.47 2.56 0.60 135.71 1.34
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
SOPN First Svgs Bancorp of NC 17.14 128.96 29.71 128.96 17.14 1.00 4.17 71.43
FBNW FirstBank Corp of Clarkston WA 20.64 117.32 19.19 117.32 NM 0.32 1.80 37.21
FFDB FirstFed Bancorp, Inc. of AL 17.65 165.75 16.09 179.91 17.65 0.28 2.33 41.18
FSPT FirstSpartan Fin. Corp. of SC 23.18 117.71 30.95 117.71 23.33 0.60 1.64 37.97
FLAG Flag Financial Corp of GA NM 328.64 29.22 328.64 NM 0.24 1.71 61.54
FLGS Flagstar Bancorp, Inc of MI 14.62 273.80 14.26 282.77 14.62 0.28 1.05 15.30
FFIC Flushing Fin. Corp. of NY* 20.39 132.40 16.84 137.66 20.39 0.36 1.55 31.58
FBHC Fort Bend Holding Corp. of TX(8) 18.69 176.15 11.91 187.11 26.27 0.40 1.93 36.04
FTSB Fort Thomas Fin. Corp. of KY 16.62 125.39 19.77 125.39 16.62 0.25 1.83 30.49
FKKY Frankfort First Bancorp of KY NM 104.30 17.68 104.30 22.40 0.80 5.49 NM
FTNB Fulton Bancorp, Inc. of MO 24.00 119.52 27.93 119.52 NM 0.24 1.33 32.00
GUPB GFSB Bancorp, Inc of Gallup NM 17.57 114.33 14.11 114.33 17.57 0.30 2.16 37.97
GSLA GS Financial Corp. of LA 23.47 81.14 33.78 81.14 26.24 0.28 2.09 49.12
GOSB GSB Financial Corp. of NY* NM 90.73 25.53 90.73 NM 0.12 0.89 30.77
GBNK Gaston Fed Bncp MHC of NC(47.0 29.07 146.03 32.83 146.03 29.07 0.20 1.60 46.51
GFCO Glenway Financial Corp. of OH 19.59 172.62 16.52 174.14 19.42 0.44 2.02 39.64
GTPS Great American Bancorp of IL NM 112.56 20.63 112.56 NM 0.44 2.32 NM
PEDE Great Pee Dee Bancorp of SC NM 81.04 36.57 81.04 NM 0.36 3.13 NM
GSFC Green Street Fin. Corp. of NC 19.57 86.59 30.98 86.59 19.57 0.48 3.56 69.57
GFED Guaranty Fed Bancshares of MO NM 112.67 31.93 112.67 NM 0.00 0.00 0.00
HCBB HCB Bancshares of Camden AR NM 89.97 15.51 91.04 NM 0.20 1.54 NM
HEMT HF Bancorp of Hemet CA NM 114.07 8.96 134.41 NM 0.00 0.00 NM
HFFC HF Financial Corp. of SD 13.79 154.04 14.98 154.04 14.84 0.00 0.00 0.00
HFNC HFNC Financial Corp. of NC(8) 16.79 119.65 20.62 119.65 24.48 0.32 2.72 45.71
HMNF HMN Financial, Inc. of MN 14.39 97.44 11.31 104.81 20.33 0.24 1.57 22.64
HALL Hallmark Capital Corp. of WI 13.95 120.24 9.24 120.24 14.72 0.00 0.00 0.00
HRBF Harbor Federal Bancorp of MD 20.28 115.95 14.71 115.95 21.22 0.47 2.58 52.22
HARB Harbor Florida Bancshrs of FL 24.47 138.89 27.53 140.42 25.56 0.26 2.26 55.32
HFSA Hardin Bancorp of Hardin MO 16.24 105.21 11.71 105.21 18.89 0.56 3.22 52.34
HARL Harleysville SB of PA 14.54 206.77 13.78 206.77 14.54 0.00 0.00 0.00
HFGI Harrington Fin. Group of IN NM 129.72 5.74 129.72 NM 0.12 1.24 NM
HARS Harris Fin. MHC of PA (24.9) NM 328.10 26.67 NM NM 0.22 1.24 40.00
HFFB Harrodsburg 1st Fin Bcrp of KY 19.48 100.54 26.61 100.54 19.48 0.40 2.67 51.95
HHFC Harvest Home Fin. Corp. of OH 23.41 125.75 14.27 125.75 23.41 0.44 2.98 69.84
HAVN Haven Bancorp of Woodhaven NY 19.20 166.80 9.43 167.19 19.37 0.30 1.40 26.79
HTHR Hawthorne Fin. Corp. of CA 5.98 119.22 5.07 119.22 5.09 0.00 0.00 0.00
HMLK Hemlock Fed. Fin. Corp. of IL 19.11 105.65 17.11 105.65 19.11 0.32 1.92 36.78
HBSC Heritage Bancorp, Inc of SC 22.44 90.16 25.95 90.16 22.44 0.30 1.71 38.46
HFWA Heritage Financial Corp of WA NM 127.28 36.66 127.28 NM 0.16 1.32 43.24
HCBC High Country Bancorp of CO 23.11 89.81 17.57 89.81 23.11 0.00 0.00 0.00
HBNK Highland Bancorp of CA 14.14 219.13 17.18 219.13 16.21 0.50 1.22 17.24
HIFS Hingham Inst. for Sav. of MA* 12.74 158.85 15.05 158.85 12.74 0.56 2.09 26.67
HBEI Home Bancorp of Elgin IL(8) NM 103.94 26.94 103.94 NM 0.40 2.76 NM
HBFW Home Bancorp of Fort Wayne IN 22.90 158.26 19.05 158.26 23.47 0.32 1.12 25.60
HCFC Home City Fin. Corp. of OH 14.34 93.30 17.34 93.30 14.34 0.36 2.46 35.29
HOMF Home Fed Bancorp of Seymour IN 13.02 200.08 18.40 205.62 16.08 0.40 1.58 20.62
HWEN Home Financial Bancorp of IN 19.64 102.74 18.48 102.74 25.00 0.10 1.21 23.81
HLFC Home Loan Financial Corp of OH NM 107.67 41.93 107.67 NM 0.00 0.00 0.00
HPBC Home Port Bancorp, Inc. of MA* 14.88 202.42 19.79 202.42 13.40 0.80 3.30 49.08
HSTD Homestead Bancorp, Inc. of LA 23.44 81.15 17.58 81.15 23.44 0.80 9.48 NM
HFBC HopFed Bancorp of KY 26.92 122.72 31.88 122.72 26.92 0.00 0.00 0.00
HZFS Horizon Fin'l. Services of IA 16.67 156.25 14.24 156.25 21.74 0.18 1.20 20.00
HRZB Horizon Financial Corp. of WA* 13.41 131.70 20.19 131.70 13.53 0.44 2.98 40.00
HRBT Hudson River Bancorp Inc of NY 29.27 98.36 26.30 98.36 25.53 0.00 0.00 0.00
ITLA ITLA Capital Corp of CA* 11.47 145.85 14.85 146.29 11.47 0.00 0.00 0.00
ICBC Independence Comm Bnk Cp of NY NM 105.69 19.21 112.26 NM 0.00 0.00 0.00
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
IFSB Independence FSB of DC 7.21 6.53 0.51 7.05 6.65 0.21 2.91 NA NA 0.42
INBI Industrial Bancorp of OH 16.48 16.48 1.49 8.59 5.42 1.49 8.59 0.30 159.91 0.54
IWBK Interwest Bancorp of WA 6.76 6.65 1.04 15.60 5.16 0.88 13.18 0.67 80.89 0.88
IPSW Ipswich SB of Ipswich MA* 5.28 5.28 1.24 22.32 7.85 0.94 16.84 0.80 92.60 0.94
JXVL Jacksonville Bancorp of TX 14.73 14.73 1.46 9.84 8.11 1.46 9.84 NA NA NA
JXSB Jcksnville SB,MHC of IL (45.6) 10.38 10.38 0.59 5.64 3.04 0.38 3.65 0.68 65.11 0.59
JSBA Jefferson Svgs Bancorp of MO 9.56 7.67 0.78 8.70 4.84 0.69 7.72 0.74 72.40 0.73
KSBK KSB Bancorp of Kingfield ME* 7.78 6.77 0.98 12.55 7.27 0.98 12.55 1.74 52.91 1.14
KFBI Klamath First Bancorp of OR 15.01 13.78 0.98 5.90 4.91 0.98 5.90 0.05 356.52 0.26
LSBI LSB Fin. Corp. of Lafayette IN 8.42 8.42 0.82 9.44 5.58 0.74 8.46 1.20 58.59 0.80
LVSB Lakeview Financial of NJ 9.73 6.64 1.69 16.30 8.28 0.84 8.15 0.96 70.27 1.47
LARK Landmark Bancshares, Inc of KS 14.11 14.11 1.09 7.70 7.30 0.95 6.69 0.25 196.35 0.66
LARL Laurel Capital Group of PA 10.63 10.63 1.43 13.68 6.90 1.40 13.48 0.32 263.07 1.20
LSBX Lawrence Savings Bank of MA* 11.14 11.14 2.46 25.31 15.25 2.42 24.94 0.24 389.46 1.74
LFED Leeds Fed Bksr MHC of MD (36.3 16.50 16.50 1.18 7.20 3.77 1.18 7.20 0.03 560.82 0.29
LXMO Lexington B&L Fin. Corp. of MO 18.02 16.91 0.95 4.20 4.60 0.95 4.20 0.48 130.50 0.95
LIBB Liberty Bancorp MHC of NJ (47) 13.45 13.45 1.12 8.31 6.73 1.12 8.31 0.35 82.98 0.45
LFCO Life Financial Corp of CA(8) 15.12 15.12 4.90 32.78 23.35 5.10 34.14 2.02 18.00 0.47
LFBI Little Falls Bancorp of NJ 10.20 9.42 0.58 4.85 4.69 0.55 4.66 0.33 108.65 0.82
LOGN Logansport Fin. Corp. of IN 18.86 18.86 1.49 7.78 6.78 1.52 7.94 0.26 103.45 0.36
LISB Long Island Bancorp, Inc of NY(8) 8.95 8.88 0.87 9.64 4.47 0.70 7.77 0.86 61.26 0.91
MAFB MAF Bancorp, Inc. of IL 7.74 6.87 1.12 14.46 8.00 1.09 14.03 0.54 81.33 0.55
MBLF MBLA Financial Corp. of MO 13.50 13.50 0.88 6.81 8.00 0.87 6.76 0.55 59.37 0.50
MECH MECH Financial Inc of CT* 9.59 9.59 1.54 15.45 8.89 1.54 15.45 0.46 296.39 2.14
MFBC MFB Corp. of Mishawaka IN 11.77 11.77 0.84 6.44 5.71 0.82 6.30 0.11 131.25 0.18
MSBF MSB Financial, Inc of MI 16.70 16.70 1.55 9.26 6.14 1.38 8.22 0.79 62.16 0.53
MARN Marion Capital Holdings of IN 20.55 20.12 1.34 6.15 6.29 1.34 6.15 1.02 105.99 1.25
MRKF Market Fin. Corp. of OH 35.28 35.28 1.13 3.21 3.69 1.13 3.21 0.39 24.64 0.16
MFSL Maryland Fed. Bancorp of MD(8) 8.76 8.68 0.62 7.11 2.93 0.88 10.01 0.65 61.91 0.49
MASB MassBank Corp. of Reading MA* 11.52 11.36 1.15 10.58 6.51 1.04 9.57 0.20 131.93 0.84
MFLR Mayflower Co-Op. Bank of MA* 9.56 9.42 1.15 12.01 7.50 1.04 10.78 0.59 144.01 1.49
MDBK Medford Bancorp, Inc. of MA* 9.24 8.75 1.08 11.95 6.88 1.01 11.28 0.18 338.34 1.19
MWBX MetroWest Bank of MA* 7.21 7.21 1.30 17.65 7.71 1.27 17.32 0.64 236.24 2.16
METF Metropolitan Fin. Corp. of OH 3.86 3.57 0.74 18.94 6.82 0.66 16.70 1.45 42.45 0.77
MIFC Mid Iowa Financial Corp. of IA(8) 8.85 8.84 1.16 12.57 6.40 1.26 13.71 0.14 161.66 0.44
MCBN Mid-Coast Bancorp of ME 8.47 8.47 0.78 9.17 7.44 0.72 8.48 0.69 79.42 0.70
MWBI Midwest Bancshares, Inc. of IA 6.89 6.89 0.89 12.79 9.33 0.78 11.17 0.66 43.79 0.48
MFFC Milton Fed. Fin. Corp. of OH 11.35 11.35 0.68 5.39 4.67 0.61 4.79 0.41 67.74 0.40
MBSP Mitchell Bancorp, Inc. of NC(8) 39.32 39.32 1.44 3.47 3.15 1.44 3.47 1.54 34.72 0.72
MBBC Monterey Bay Bancorp of CA 11.68 10.92 0.42 3.68 2.75 0.39 3.43 0.55 112.07 1.08
MONT Montgomery Fin. Corp. of IN 18.25 18.25 0.80 4.71 4.85 0.80 4.71 1.06 15.75 0.19
MSBK Mutual SB, FSB of Bay City MI 5.07 5.07 -1.31 -22.89 -21.59 -0.46 -8.09 0.09 312.66 0.54
MYST Mystic Financial of MA* 19.06 19.06 0.73 5.82 3.82 0.67 5.38 0.08 824.00 0.90
NHTB NH Thrift Bancshares of NH 8.09 7.03 0.90 11.49 8.77 0.83 10.56 1.00 95.48 1.21
NSLB NS&L Bancorp, Inc of Neosho MO 18.78 18.65 0.68 3.49 3.39 0.68 3.49 0.19 41.67 0.14
NSSY NSS Bancorp of CT(8)* 8.12 7.90 1.00 12.36 5.81 1.14 14.02 NA NA 1.27
NMSB Newmil Bancorp, Inc. of CT* 8.90 8.90 0.84 8.77 6.17 0.84 8.77 0.46 297.15 2.98
NBCP Niagara Bancorp of NY MHC(45.4* 19.08 19.08 1.10 5.78 4.22 1.06 5.54 0.29 188.17 1.07
NBSI North Bancshares of Chicago IL 11.46 11.46 0.46 3.43 3.59 0.44 3.28 NA NA 0.27
FFFD North Central Bancshares of IA 15.42 13.42 1.14 7.37 6.63 1.14 7.37 0.12 662.09 1.03
NEIB Northeast Indiana Bncrp of IN 13.34 13.34 1.19 8.35 6.44 1.19 8.35 0.41 159.71 0.73
NWSB Northwest Bcrp MHC of PA (30.8 8.85 7.91 0.95 10.14 3.45 0.95 10.14 0.50 123.26 0.82
NWEQ Northwest Equity Corp. of WI 11.66 11.66 1.15 9.96 7.80 1.08 9.30 1.73 28.33 0.60
NTMG Nutmeg FS&LA of CT 5.83 5.83 0.51 8.77 4.46 0.36 6.13 NA NA 0.53
OHSL OHSL Financial Corp. of OH 10.54 10.54 0.86 7.94 5.29 0.80 7.36 0.16 134.65 0.32
OCFC Ocean Fin. Corp. of NJ 14.22 14.22 0.95 6.13 5.31 0.95 6.13 0.40 114.22 0.80
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
IFSB Independence FSB of DC 15.03 105.95 7.64 117.08 NM 0.25 1.53 22.94
INBI Industrial Bancorp of OH 18.46 157.69 25.99 157.69 18.46 0.60 3.10 57.14
IWBK Interwest Bancorp of WA 19.38 277.16 18.73 281.53 22.94 0.53 2.12 41.09
IPSW Ipswich SB of Ipswich MA* 12.74 257.14 13.58 257.14 16.88 0.16 1.19 15.09
JXVL Jacksonville Bancorp of TX 12.32 118.79 17.50 118.79 12.32 0.50 2.92 35.97
JXSB Jcksnville SB,MHC of IL (45.6) NM 181.47 18.84 181.47 NM 0.30 1.79 58.82
JSBA Jefferson Svgs Bancorp of MO 20.66 171.03 16.36 213.16 23.28 0.28 1.38 28.57
KSBK KSB Bancorp of Kingfield ME* 13.75 172.59 13.43 198.56 13.75 0.10 0.61 8.33
KFBI Klamath First Bancorp of OR 20.35 116.28 17.46 126.72 20.35 0.36 2.06 41.86
LSBI LSB Fin. Corp. of Lafayette IN 17.92 162.64 13.69 162.64 20.00 0.40 1.29 23.12
LVSB Lakeview Financial of NJ 12.07 175.47 17.07 257.26 24.15 0.25 1.18 14.20
LARK Landmark Bancshares, Inc of KS 13.70 104.70 14.78 104.70 15.76 0.00 0.00 0.00
LARL Laurel Capital Group of PA 14.49 190.11 20.21 190.11 14.71 0.60 3.00 43.48
LSBX Lawrence Savings Bank of MA* 6.56 144.97 16.15 144.97 6.66 0.00 0.00 0.00
LFED Leeds Fed Bksr MHC of MD (36.3 26.52 183.82 30.33 183.82 26.52 0.56 3.20 NM
LXMO Lexington B&L Fin. Corp. of MO 21.74 88.86 16.01 94.70 21.74 0.30 2.00 43.48
LIBB Liberty Bancorp MHC of NJ (47) 14.86 123.49 16.61 123.49 14.86 0.00 0.00 0.00
LFCO Life Financial Corp of CA(8) 4.28 103.58 15.66 103.58 4.11 0.00 0.00 0.00
LFBI Little Falls Bancorp of NJ 21.33 109.36 11.15 118.43 22.22 0.24 1.50 32.00
LOGN Logansport Fin. Corp. of IN 14.75 110.90 20.92 110.90 14.46 0.44 2.98 44.00
LISB Long Island Bancorp, Inc of NY(8) 22.38 208.32 18.65 210.13 27.75 0.80 1.65 36.87
MAFB MAF Bancorp, Inc. of IL 12.50 174.42 13.50 196.63 12.88 0.28 1.33 16.67
MBLF MBLA Financial Corp. of MO 12.50 86.01 11.61 86.01 12.58 0.60 3.12 38.96
MECH MECH Financial Inc of CT* 11.24 163.36 15.67 163.36 11.24 0.00 0.00 0.00
MFBC MFB Corp. of Mishawaka IN 17.52 111.52 13.13 111.52 17.91 0.34 1.42 24.82
MSBF MSB Financial, Inc of MI 16.29 146.32 24.43 146.32 18.35 0.30 2.07 33.71
MARN Marion Capital Holdings of IN 15.91 97.98 20.13 100.09 15.91 0.88 3.87 61.54
MRKF Market Fin. Corp. of OH 27.08 85.25 30.07 85.25 27.08 0.28 2.15 58.33
MFSL Maryland Fed. Bancorp of MD(8) NM 242.67 21.26 244.98 24.25 0.45 1.17 39.82
MASB MassBank Corp. of Reading MA* 15.36 151.01 17.40 153.11 16.98 0.00 0.00 0.00
MFLR Mayflower Co-Op. Bank of MA* 13.33 153.68 14.70 155.95 14.85 0.80 3.62 48.19
MDBK Medford Bancorp, Inc. of MA* 14.53 165.73 15.31 175.00 15.40 0.80 2.08 30.19
MWBX MetroWest Bank of MA* 12.96 214.07 15.43 214.07 13.21 0.20 2.86 37.04
METF Metropolitan Fin. Corp. of OH 14.66 251.48 9.71 272.06 16.62 0.00 0.00 0.00
MIFC Mid Iowa Financial Corp. of IA(8) 15.63 183.33 16.22 183.58 14.32 0.08 0.58 9.09
MCBN Mid-Coast Bancorp of ME 13.43 120.16 10.18 120.16 14.52 0.20 2.22 29.85
MWBI Midwest Bancshares, Inc. of IA 10.71 129.81 8.94 129.81 12.27 0.32 2.37 25.40
MFFC Milton Fed. Fin. Corp. of OH 21.43 117.39 13.32 117.39 24.11 0.60 4.44 NM
MBSP Mitchell Bancorp, Inc. of NC(8) NM 109.81 43.18 109.81 NM 0.40 2.34 74.07
MBBC Monterey Bay Bancorp of CA NM 133.33 15.57 142.60 NM 0.12 0.75 27.27
MONT Montgomery Fin. Corp. of IN 20.62 85.56 15.62 85.56 20.62 0.22 2.13 44.00
MSBK Mutual SB, FSB of Bay City MI NM 119.97 6.08 119.97 NM 0.00 0.00 NM
MYST Mystic Financial of MA* 26.21 103.26 19.68 103.26 28.40 0.20 1.47 38.46
NHTB NH Thrift Bancshares of NH 11.40 125.20 10.13 144.05 12.40 0.60 3.87 44.12
NSLB NS&L Bancorp, Inc of Neosho MO 29.46 103.82 19.50 104.57 29.46 0.50 2.88 NM
NSSY NSS Bancorp of CT(8)* 17.20 212.53 17.25 218.37 15.16 0.52 1.07 18.44
NMSB Newmil Bancorp, Inc. of CT* 16.22 139.53 12.42 139.53 16.22 0.00 0.00 0.00
NBCP Niagara Bancorp of NY MHC(45.4* 23.71 136.94 26.12 136.94 24.74 0.00 0.00 0.00
NBSI North Bancshares of Chicago IL 27.84 114.17 13.08 114.17 29.17 0.40 3.27 NM
FFFD North Central Bancshares of IA 15.08 111.14 17.14 127.71 15.08 0.32 1.75 26.45
NEIB Northeast Indiana Bncrp of IN 15.54 130.43 17.41 130.43 15.54 0.34 1.61 25.00
NWSB Northwest Bcrp MHC of PA (30.8 28.98 280.22 24.79 313.27 28.98 0.16 1.25 36.36
NWEQ Northwest Equity Corp. of WI 12.82 124.93 14.57 124.93 13.73 0.00 0.00 0.00
NTMG Nutmeg FS&LA of CT 22.42 196.69 11.47 196.69 NM 0.20 1.68 37.74
OHSL OHSL Financial Corp. of OH 18.90 146.09 15.40 146.09 20.39 0.50 3.23 60.98
OCFC Ocean Fin. Corp. of NJ 18.82 121.87 17.33 121.87 18.82 0.48 2.83 53.33
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
OTFC Oregon Trail Fin. Corp. of OR 25.56 25.56 1.20 7.06 4.79 1.20 7.06 0.18 206.22 0.57
OFCP Ottawa Financial Corp. of MI 8.45 6.93 0.87 10.07 5.55 0.81 9.32 0.50 79.48 0.46
PFFB PFF Bancorp of Pomona CA 9.04 8.95 0.60 6.07 5.66 0.56 5.70 1.06 79.87 1.36
PSFI PS Financial of Chicago IL 27.82 27.82 1.09 3.18 3.71 1.85 5.37 0.41 50.85 0.37
PSBI PSB Bancorp Inc. of PA* 19.81 19.81 0.78 3.93 4.77 0.78 3.93 NA NA 0.46
PVFC PVF Capital Corp. of OH 7.20 7.20 1.33 18.67 8.19 1.26 17.66 0.69 95.38 0.74
PBCI Pamrapo Bancorp, Inc. of NJ 12.82 12.75 1.32 10.26 6.18 1.27 9.91 1.66 35.55 1.03
PFED Park Bancorp of Chicago IL 19.91 19.91 0.90 4.12 3.73 0.95 4.37 0.07 390.63 0.67
PVSA Parkvale Financial Corp of PA 7.82 7.78 1.08 13.97 6.54 1.08 13.97 0.43 279.67 1.56
PBHC Pathfinder BC MHC of NY (45.2)* 11.76 9.97 0.91 7.74 4.13 0.73 6.24 1.30 32.06 0.63
PEEK Peekskill Fin. Corp. of NY 22.98 22.98 1.03 4.11 4.19 1.05 4.17 0.79 43.03 1.41
PFSB PennFed Fin. Services of NJ 7.19 6.24 0.80 11.08 8.17 0.78 10.80 0.44 40.82 0.25
PWBK Pennwood Bancorp, Inc. of PA 18.34 18.34 0.77 4.22 4.31 0.92 5.01 1.44 58.95 1.15
PBKB People's Bancshares of MA* 3.67 3.54 0.76 16.97 8.48 0.33 7.47 0.35 149.48 0.88
TSBS Peoples Bancorp Inc of NJ* 24.24 25.07 1.03 4.24 4.55 1.03 4.24 0.60 76.21 0.90
PFDC Peoples Bancorp of Auburn IN 15.08 15.08 1.50 9.86 6.19 1.50 9.86 0.18 172.98 0.36
PBCT Peoples Bank, MHC of CT (41.2)* 9.23 7.91 1.18 13.45 5.52 0.63 7.22 0.70 156.79 1.72
PFFC Peoples Fin. Corp. of OH 19.14 19.14 1.30 6.83 6.58 0.49 2.59 0.15 151.61 0.30
PHBK Peoples Heritage Fin Grp of ME* 6.71 5.10 1.22 16.57 4.52 1.22 16.57 NA NA 1.25
PSFC Peoples Sidney Fin. Corp of OH 25.15 25.15 1.24 5.56 3.62 1.24 5.56 1.10 35.55 0.44
PERM Permanent Bancorp, Inc. of IN 9.72 9.62 0.61 6.46 4.74 0.60 6.26 0.18 223.89 0.75
PCBC Perry Co. Fin. Corp. of MO 18.94 18.94 1.03 5.46 5.20 1.02 5.41 NA NA 0.16
PHFC Pittsburgh Home Fin Corp of PA 7.43 7.34 0.79 8.24 7.00 0.67 6.99 1.24 33.90 0.75
PFSL Pocahontas Bancorp of AR 14.51 14.51 0.62 7.76 4.21 0.61 7.54 0.26 159.98 0.88
PTRS Potters Financial Corp of OH 8.71 8.71 0.80 9.07 7.10 0.78 8.81 0.32 541.52 2.35
PHSB Ppls Home SB, MHC of PA (45.0) 12.76 12.76 0.81 7.30 3.88 0.72 6.49 0.32 173.78 1.31
PRBC Prestige Bancorp of PA 9.83 9.83 0.52 4.79 4.38 0.51 4.66 0.35 79.16 0.41
PFNC Progress Financial Corp. of PA 5.52 4.89 0.83 15.78 4.44 0.75 14.22 0.79 90.50 1.16
PROV Provident Fin. Holdings of CA 11.09 11.09 0.74 5.81 5.16 0.36 2.85 1.04 73.18 0.89
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 13.42 13.42 1.11 8.38 3.37 0.91 6.88 NA NA 0.51
PLSK Pulaski SB, MHC of NJ (47.0) 11.54 11.54 0.63 5.86 3.70 0.63 5.86 0.63 82.57 0.97
PULS Pulse Bancorp of S. River NJ(8) 8.34 8.34 1.07 13.16 6.24 1.08 13.31 0.46 78.83 1.33
QCFB QCF Bancorp of Virginia MN 17.70 17.70 1.68 9.63 6.41 1.66 9.53 1.22 67.47 1.92
QCBC Quaker City Bancorp of CA 8.75 8.75 0.76 8.74 6.26 0.74 8.50 1.11 80.77 1.13
QCSB Queens County Bancorp of NY* 10.44 10.44 1.47 12.55 3.70 1.44 12.30 0.50 110.42 0.64
RARB Raritan Bancorp of Raritan NJ* 7.54 7.45 0.99 13.02 5.93 0.97 12.78 0.43 186.77 1.14
RELY Reliance Bancorp, Inc. of NY 8.89 6.13 0.90 10.70 6.67 0.95 11.25 0.40 88.82 0.91
RELI Reliance Bancshares Inc of WI(8) 49.97 49.97 1.03 2.11 2.13 1.03 2.11 NA NA 0.60
RCBK Richmond County Fin Corp of NY 22.04 21.95 0.19 1.11 0.60 1.53 9.09 0.37 124.25 1.12
RIVR River Valley Bancorp of IN 13.65 13.46 0.93 7.27 6.40 0.83 6.46 0.55 158.30 1.03
RVSB Riverview Bancorp of WA 22.35 21.63 1.53 8.47 4.85 1.48 8.20 0.28 137.60 0.63
RSLN Roslyn Bancorp, Inc. of NY* 16.77 16.69 1.32 7.11 5.74 1.26 6.78 0.23 281.89 2.01
SCCB S. Carolina Comm. Bnshrs of SC 20.38 20.38 1.01 4.23 3.64 1.01 4.23 1.26 50.34 0.82
SBFL SB Fngr Lakes MHC of NY (33.1) 8.68 8.68 0.40 4.39 1.63 0.34 3.72 0.32 141.95 0.89
SFED SFS Bancorp of Schenectady NY(8) 12.36 12.36 0.64 5.13 3.35 0.62 4.96 0.84 56.89 0.60
SGVB SGV Bancorp of W. Covina CA 7.89 7.79 0.38 5.10 4.13 0.43 5.80 NA NA 0.48
SISB SIS Bancorp, Inc. of MA(8)* 7.14 7.14 0.69 9.61 3.67 0.89 12.32 0.27 471.43 2.63
SWCB Sandwich Bancorp of MA(8)* 8.08 7.83 0.98 12.21 4.05 0.95 11.76 0.36 220.94 1.16
SFSL Security First Corp. of OH(8) 9.43 9.30 1.39 14.86 5.62 1.39 14.86 0.62 122.36 0.83
SKAN Skaneateles Bancorp Inc of NY* 6.98 6.80 0.64 9.27 6.53 0.63 9.10 1.74 57.15 1.23
SOBI Sobieski Bancorp of S. Bend IN 14.10 14.10 0.58 3.93 4.06 0.58 3.93 0.29 77.82 0.28
SSFC South Street Fin. Corp. of NC* 15.88 15.88 0.64 2.97 3.56 0.66 3.06 0.23 91.68 0.40
SBAN SouthBanc Shares Inc. of SC 21.85 21.85 0.94 4.29 4.14 0.94 4.29 0.37 153.09 0.99
SCBS Southern Commun. Bncshrs of AL 15.85 15.85 1.10 6.93 4.38 1.10 6.93 0.19 602.29 1.69
SMBC Southern Missouri Bncrp of MO 16.77 16.77 0.70 4.28 4.57 0.66 4.06 1.49 55.77 1.08
SVRN Sovereign Bancorp, Inc. of PA 4.93 4.23 0.45 9.93 2.64 0.68 15.14 0.57 104.60 1.07
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
OTFC Oregon Trail Fin. Corp. of OR 20.90 97.70 24.97 97.70 20.90 0.20 1.43 29.85
OFCP Ottawa Financial Corp. of MI 18.01 178.34 15.07 217.58 19.46 0.36 1.49 26.87
PFFB PFF Bancorp of Pomona CA 17.68 111.61 10.09 112.76 18.82 0.00 0.00 0.00
PSFI PS Financial of Chicago IL 26.96 105.02 29.21 105.02 15.96 0.48 3.96 NM
PSBI PSB Bancorp Inc. of PA* 20.95 82.36 16.32 82.36 20.95 0.00 0.00 0.00
PVFC PVF Capital Corp. of OH 12.21 208.33 15.00 208.33 12.91 0.00 0.00 0.00
PBCI Pamrapo Bancorp, Inc. of NJ 16.18 162.79 20.87 163.65 16.77 1.12 4.00 64.74
PFED Park Bancorp of Chicago IL 26.78 110.40 21.98 110.40 25.27 0.00 0.00 0.00
PVSA Parkvale Financial Corp of PA 15.30 201.44 15.75 202.46 15.30 0.60 1.87 28.57
PBHC Pathfinder BC MHC of NY (45.2)* 24.19 184.05 21.65 217.08 30.00 0.20 1.33 32.26
PEEK Peekskill Fin. Corp. of NY 23.86 101.35 23.29 101.35 23.51 0.36 2.29 54.55
PFSB PennFed Fin. Services of NJ 12.24 128.24 9.23 147.95 12.56 0.14 0.97 11.86
PWBK Pennwood Bancorp, Inc. of PA 23.23 100.82 18.49 100.82 19.54 0.28 2.27 52.83
PBKB People's Bancshares of MA* 11.79 196.54 7.21 203.58 26.79 0.56 2.99 35.22
TSBS Peoples Bancorp Inc of NJ* 21.97 93.13 22.57 90.03 21.97 0.10 1.23 27.03
PFDC Peoples Bancorp of Auburn IN 16.15 155.44 23.45 155.44 16.15 0.44 2.10 33.85
PBCT Peoples Bank, MHC of CT (41.2)* 18.12 205.01 18.92 239.36 NM 0.84 3.11 56.38
PFFC Peoples Fin. Corp. of OH 15.19 103.09 19.73 103.09 NM 0.60 5.00 NM
PHBK Peoples Heritage Fin Grp of ME* 22.13 343.75 23.06 NM 22.13 0.44 2.29 50.57
PSFC Peoples Sidney Fin. Corp of OH 27.65 132.01 33.20 132.01 27.65 0.28 1.43 39.44
PERM Permanent Bancorp, Inc. of IN 21.09 130.69 12.70 131.96 21.77 0.24 1.78 37.50
PCBC Perry Co. Fin. Corp. of MO 19.23 101.57 19.24 101.57 19.42 0.50 2.50 48.08
PHFC Pittsburgh Home Fin Corp of PA 14.29 125.29 9.31 126.78 16.84 0.24 1.50 21.43
PFSL Pocahontas Bancorp of AR 23.78 98.39 14.28 98.39 24.46 0.24 2.80 66.67
PTRS Potters Financial Corp of OH 14.08 125.11 10.89 125.11 14.50 0.00 0.00 0.00
PHSB Ppls Home SB, MHC of PA (45.0) 25.79 157.31 20.08 157.31 29.02 0.28 1.72 44.44
PRBC Prestige Bancorp of PA 22.86 106.67 10.48 106.67 23.53 0.17 1.06 24.29
PFNC Progress Financial Corp. of PA 22.54 313.73 17.31 NM 25.00 0.15 0.94 21.13
PROV Provident Fin. Holdings of CA 19.36 113.05 12.54 113.05 NM 0.00 0.00 0.00
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 29.64 240.68 32.30 240.68 NM 1.10 3.91 NM
PLSK Pulaski SB, MHC of NJ (47.0) 27.05 142.53 16.44 142.53 27.05 0.30 2.02 54.55
PULS Pulse Bancorp of S. River NJ(8) 16.02 200.97 16.76 200.97 15.85 0.80 2.76 44.20
QCFB QCF Bancorp of Virginia MN 15.59 148.30 26.25 148.30 15.76 0.00 0.00 0.00
QCBC Quaker City Bancorp of CA 15.97 133.51 11.69 133.51 16.43 0.00 0.00 0.00
QCSB Queens County Bancorp of NY* 27.04 NM 37.35 NM 27.59 1.00 2.47 66.67
RARB Raritan Bancorp of Raritan NJ* 16.87 210.37 15.86 213.09 17.18 0.60 2.14 36.14
RELY Reliance Bancorp, Inc. of NY 15.00 144.37 12.84 209.23 14.27 0.72 2.46 36.92
RELI Reliance Bancshares Inc of WI(8) NM 100.75 50.35 100.75 NM 0.00 0.00 0.00
RCBK Richmond County Fin Corp of NY NM 123.34 27.18 123.85 20.35 0.24 1.59 NM
RIVR River Valley Bancorp of IN 15.63 109.97 15.01 111.49 17.58 0.22 1.30 20.37
RVSB Riverview Bancorp of WA 20.63 131.71 29.44 136.13 21.31 0.24 1.85 38.10
RSLN Roslyn Bancorp, Inc. of NY* 17.41 124.12 20.81 124.70 18.26 0.34 1.83 31.78
SCCB S. Carolina Comm. Bnshrs of SC 27.50 135.22 27.56 135.22 27.50 0.64 2.91 NM
SBFL SB Fngr Lakes MHC of NY (33.1) NM 262.30 22.77 262.30 NM 0.24 1.50 NM
SFED SFS Bancorp of Schenectady NY(8) 29.89 153.20 18.94 153.20 NM 0.32 1.16 34.78
SGVB SGV Bancorp of W. Covina CA 24.24 118.78 9.37 120.30 21.33 0.00 0.00 0.00
SISB SIS Bancorp, Inc. of MA(8)* 27.24 230.85 16.49 230.85 21.25 0.00 0.00 0.00
SWCB Sandwich Bancorp of MA(8)* 24.69 289.25 23.38 298.71 25.64 1.40 2.32 57.38
SFSL Security First Corp. of OH(8) 17.80 255.47 24.09 258.94 17.80 0.36 1.71 30.51
SKAN Skaneateles Bancorp Inc of NY* 15.32 136.66 9.54 140.26 15.60 0.28 1.65 25.23
SOBI Sobieski Bancorp of S. Bend IN 24.61 94.99 13.39 94.99 24.61 0.32 2.03 50.00
SSFC South Street Fin. Corp. of NC* 28.13 122.12 19.40 122.12 27.27 0.40 4.44 NM
SBAN SouthBanc Shares Inc. of SC 24.15 103.64 22.65 103.64 24.15 0.48 2.72 65.75
SCBS Southern Commun. Bncshrs of AL 22.86 158.42 25.11 158.42 22.86 0.30 1.88 42.86
SMBC Southern Missouri Bncrp of MO 21.88 93.48 15.68 93.48 23.10 0.50 3.01 65.79
SVRN Sovereign Bancorp, Inc. of PA NM 258.63 12.74 301.39 24.80 0.08 0.53 20.00
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1B (continued)
Weekly Thrift Market Line - Part Two
Prices As Of August 21, 1998
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
STFR St. Francis Cap. Corp. of WI 8.00 7.15 0.80 9.98 6.43 0.77 9.59 0.19 219.19 0.88
SPBC St. Paul Bancorp, Inc. of IL 9.34 9.30 1.09 12.10 6.68 1.06 11.85 0.31 239.56 1.03
SFFC StateFed Financial Corp. of IA 17.73 17.73 1.26 7.11 5.49 1.26 7.11 NA NA NA
SFIN Statewide Fin. Corp. of NJ 9.83 9.82 0.81 8.45 6.58 0.80 8.38 0.47 95.71 0.89
STSA Sterling Financial Corp. of WA 5.60 5.22 0.54 10.94 6.22 0.47 9.55 0.52 128.59 1.09
ROSE T R Financial Corp. of NY* 6.15 6.15 0.99 15.97 6.29 0.88 14.13 0.53 70.19 0.68
THRD TF Financial Corp. of PA 7.97 6.71 0.75 7.45 6.13 0.63 6.28 0.31 97.87 0.86
TPNZ Tappan Zee Fin., Inc. of NY(8) 16.86 16.86 0.88 5.18 3.85 0.83 4.83 NA NA 1.23
THTL Thistle Group Holdings of PA 27.80 27.80 1.37 4.91 5.89 1.37 4.91 0.22 98.57 0.76
TSBK Timberland Bancorp of WA 32.12 32.12 1.63 10.60 3.96 1.55 10.05 NA NA 0.91
TRIC Tri-County Bancorp of WY 15.73 15.73 1.01 6.58 6.42 1.05 6.84 NA NA 1.01
TWIN Twin City Bancorp, Inc. of TN 12.75 12.75 1.04 8.06 6.82 0.85 6.63 0.37 27.12 0.14
USAB USABancshares, Inc of PA* 12.50 12.42 0.20 2.08 0.61 0.35 3.56 1.08 49.32 0.90
UCBC Union Community Bancorp of IN 40.02 40.02 1.44 5.52 3.62 1.44 5.52 0.33 99.15 0.40
UCFC United Community Fin. of OH 32.31 32.31 1.50 4.65 3.92 1.50 4.65 0.98 58.70 0.94
UFRM United FSB of Rocky Mount NC(8) 7.50 7.50 0.60 8.13 2.99 0.40 5.37 1.16 83.92 1.15
UBMT United Fin. Corp. of MT 25.61 25.61 1.31 5.53 3.23 1.31 5.53 0.42 156.46 1.02
UTBI United Tenn. Bancshares of TN 26.99 26.99 1.01 6.08 4.70 1.01 6.08 0.57 148.60 1.27
WHGB WHG Bancshares of MD 16.85 16.85 0.64 3.27 4.36 0.66 3.34 0.65 41.31 0.46
WSFS WSFS Financial Corp. of DE* 5.93 5.90 1.11 20.21 7.49 1.08 19.61 1.30 122.16 3.26
WVFC WVS Financial Corp. of PA 10.99 10.99 1.28 11.10 6.48 1.29 11.21 0.20 308.46 1.17
WRNB Warren Bancorp of Peabody MA* 11.03 11.03 1.73 16.33 7.31 1.80 16.94 1.27 83.50 1.62
WSBI Warwick Community Bncrp of NY* 23.05 23.05 0.55 2.40 2.18 0.53 2.32 0.52 75.47 0.79
WFSL Washington Federal, Inc. of WA 13.41 12.41 1.92 15.33 8.40 1.88 15.04 0.70 60.38 0.57
WYNE Wayne Bancorp, Inc. of NJ 12.69 12.69 0.70 5.37 2.92 0.70 5.37 0.80 103.99 1.18
WAYN Wayne Svgs Bks MHC of OH (48.2 9.41 9.41 0.72 7.72 3.33 0.66 7.10 0.49 58.18 0.36
WCFB Wbstr Cty FSB MHC of IA (45.6) 24.02 24.02 1.43 6.09 3.63 1.43 6.09 0.07 534.72 0.69
WBST Webster Financial Corp. of CT 5.29 4.66 0.79 15.08 4.99 0.80 15.19 0.41 149.68 1.14
WEFC Wells Fin. Corp. of Wells MN 14.44 14.44 1.13 7.89 6.69 1.08 7.51 0.28 154.67 0.48
WCBI WestCo Bancorp, Inc. of IL(8) 15.44 15.44 1.53 9.93 6.89 1.41 9.10 0.44 63.73 0.37
WSTR WesterFed Fin. Corp. of MT 10.62 8.52 0.75 7.02 7.14 0.75 7.02 0.49 97.44 0.74
WOFC Western Ohio Fin. Corp. of OH 14.66 13.72 0.07 0.47 0.49 0.09 0.63 1.29 74.24 1.36
WEHO Westwood Hmstd Fin Corp of OH 23.00 23.00 0.61 2.28 2.69 0.97 3.64 0.19 119.15 0.25
FFWD Wood Bancorp of OH 13.20 13.20 1.42 11.21 5.42 1.23 9.68 0.16 243.12 0.48
YFCB Yonkers Fin. Corp. of NY 13.19 13.19 0.97 6.85 6.79 0.94 6.66 0.15 208.94 0.61
YFED York Financial Corp. of PA 8.77 8.77 0.88 10.08 5.97 0.71 8.15 2.25 31.83 0.90
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
STFR St. Francis Cap. Corp. of WI 15.55 153.10 12.25 171.37 16.19 0.56 1.42 22.05
SPBC St. Paul Bancorp, Inc. of IL 14.97 173.03 16.16 173.73 15.29 0.60 2.78 41.67
SFFC StateFed Financial Corp. of IA 18.21 125.74 22.29 125.74 18.21 0.20 1.57 28.57
SFIN Statewide Fin. Corp. of NJ 15.20 126.75 12.46 126.92 15.32 0.52 2.74 41.60
STSA Sterling Financial Corp. of WA 16.07 145.58 8.16 156.25 18.41 0.00 0.00 0.00
ROSE T R Financial Corp. of NY* 15.91 236.65 14.55 236.65 17.97 0.80 2.41 38.28
THRD TF Financial Corp. of PA 16.33 150.28 11.98 178.44 19.35 0.48 2.00 32.65
TPNZ Tappan Zee Fin., Inc. of NY(8) 26.00 132.20 22.28 132.20 27.86 0.28 1.44 37.33
THTL Thistle Group Holdings of PA 16.98 83.41 23.19 83.41 16.98 0.00 0.00 0.00
TSBK Timberland Bancorp of WA 25.22 115.20 37.00 115.20 26.60 0.24 1.64 41.38
TRIC Tri-County Bancorp of WY 15.58 99.75 15.69 99.75 15.00 0.44 3.67 57.14
TWIN Twin City Bancorp, Inc. of TN 14.66 116.31 14.83 116.31 17.82 0.40 3.03 44.44
USAB USABancshares, Inc of PA* NM 179.69 22.45 180.82 NM 0.00 0.00 0.00
UCBC Union Community Bancorp of IN 27.66 91.42 36.59 91.42 27.66 0.34 2.62 72.34
UCFC United Community Fin. of OH 25.53 118.77 38.38 118.77 25.53 0.00 0.00 0.00
UFRM United FSB of Rocky Mount NC(8) NM 254.30 19.07 254.30 NM 0.24 1.35 45.28
UBMT United Fin. Corp. of MT NM 170.45 43.66 170.45 NM 1.00 4.04 NM
UTBI United Tenn. Bancshares of TN 21.28 87.14 23.52 87.14 21.28 0.00 0.00 0.00
WHGB WHG Bancshares of MD 22.92 76.55 12.90 76.55 22.45 0.32 2.91 66.67
WSFS WSFS Financial Corp. of DE* 13.34 245.94 14.59 247.30 13.75 0.12 0.67 8.96
WVFC WVS Financial Corp. of PA 15.44 174.03 19.13 174.03 15.29 0.60 3.81 58.82
WRNB Warren Bancorp of Peabody MA* 13.68 210.38 23.21 210.38 13.18 0.36 3.29 45.00
WSBI Warwick Community Bncrp of NY* NM 110.12 25.39 110.12 NM 0.00 0.00 0.00
WFSL Washington Federal, Inc. of WA 11.90 172.66 23.16 186.65 12.14 0.92 3.70 44.02
WYNE Wayne Bancorp, Inc. of NJ NM 183.67 23.31 183.67 NM 0.20 0.63 21.74
WAYN Wayne Svgs Bks MHC of OH (48.2 NM 226.35 21.29 226.35 NM 0.62 2.79 NM
WCFB Wbstr Cty FSB MHC of IA (45.6) 27.55 165.23 39.68 165.23 27.55 0.00 0.00 0.00
WBST Webster Financial Corp. of CT 20.04 261.27 13.82 296.20 19.89 0.44 1.61 32.35
WEFC Wells Fin. Corp. of Wells MN 14.94 114.16 16.49 114.16 15.71 0.60 3.26 48.78
WCBI WestCo Bancorp, Inc. of IL(8) 14.51 141.27 21.81 141.27 15.82 0.68 2.43 35.23
WSTR WesterFed Fin. Corp. of MT 14.01 95.73 10.17 119.42 14.01 0.50 2.68 37.59
WOFC Western Ohio Fin. Corp. of OH NM 97.04 14.23 103.71 NM 1.00 4.42 NM
WEHO Westwood Hmstd Fin Corp of OH NM 101.80 23.41 101.80 23.29 0.40 3.37 NM
FFWD Wood Bancorp of OH 18.47 199.14 26.29 199.14 21.38 0.36 2.22 40.91
YFCB Yonkers Fin. Corp. of NY 14.73 98.17 12.95 98.17 15.15 0.00 0.00 0.00
YFED York Financial Corp. of PA 16.74 161.63 14.18 161.63 20.70 0.52 2.70 45.22
EXHIBIT IV-2
HISTORICAL STOCK PRICE INDICES(1)
SNL SNL
NASDAQ Thrift Bank
Year/Qtr. Ended DJIA S&P 500 Composite Index Index
- --------------- ------ ------- --------- ----- -----
1991: Quarter 1 2881.1 375.2 482.3 125.5 66.0
Quarter 2 2957.7 371.2 475.9 130.5 82.0
Quarter 3 3018.2 387.9 526.9 141.8 90.7
Quarter 4 3168.0 417.1 586.3 144.7 103.1
1992: Quarter 1 3235.5 403.7 603.8 157.0 113.3
Quarter 2 3318.5 408.1 563.6 173.3 119.7
Quarter 3 3271.7 417.8 583.3 167.0 117.1
Quarter 4 3301.1 435.7 677.0 201.1 136.7
1993: Quarter 1 3435.1 451.7 690.1 228.2 151.4
Quarter 2 3516.1 450.5 704.0 219.8 147.0
Quarter 3 3555.1 458.9 762.8 258.4 154.3
Quarter 4 3754.1 466.5 776.8 252.5 146.2
1994: Quarter 1 3625.1 445.8 743.5 241.6 143.1
Quarter 2 3625.0 444.3 706.0 269.6 152.6
Quarter 3 3843.2 462.6 764.3 279.7 149.2
Quarter 4 3834.4 459.3 752.0 244.7 137.6
1995: Quarter 1 4157.7 500.7 817.2 278.4 152.1
Quarter 2 4556.1 544.8 933.5 313.5 171.7
Quarter 3 4789.1 584.4 1,043.5 362.3 195.3
Quarter 4 5117.1 615.9 1,052.1 376.5 207.6
1996: Quarter 1 5587.1 645.5 1,101.4 382.1 225.1
Quarter 2 5654.6 670.6 1,185.0 387.2 224.7
Quarter 3 5882.2 687.3 1,226.9 429.3 249.2
Quarter 4 6442.5 737.0 1,280.7 483.6 280.1
1997: Quarter 1 6583.5 757.1 1,221.7 527.7 292.5
Quarter 2 7672.8 885.1 1,442.1 624.5 333.3
Quarter 3 7945.3 947.3 1,685.7 737.5 381.7
Quarter 4 7908.3 970.4 1,570.4 814.1 414.9
1998: Quarter 1 8799.8 1101.8 1,835.7 869.3 456.1
Quarter 2 8952.0 1133.8 1,894.7 833.5 457.7
August 21, 1998 8533.7 1081.2 1,797.6 702.1 407.2
(1) End of period data.
Sources: SNL Securities; Wall Street Journal.
EXHIBIT IV-3
Historical Thrift Stock Indices
INDEX VALUES
INDEX VALUES PERCENT CHANGE SINCE
------------ --------------------
07/31/98 1 MONTH YTD LTM 1 MONTH YTD LTM
-------- ------- --- --- ------- --- ---
All Pub. Traded Thrifts 783.7 833.5 814.1 682.2 -5.98 -3.74 14.88
MHC Index 1.018.0 1.123.2 1,179.9 751.6 -9.37 -13.72 35.45
INSURANCE INDICES
SAIFThrifts 735.0 784.7 764.4 606.6 -6.34 -3.85 21.16
BIF Thrifts 949.0 1.003.3 984.4 904.1 -5.41 -3.59 4.97
STOCK EXCHANGE INDICES
AMEX Thrifts 241.7 252.6 255.4 197.1 -4.33 -5.36 22.65
NYSE Thrifts 499.2 539.4 521.3 418.7 -7.45 -4.25 19.23
OTC Thrifts 879.7 930.4 911.5 777.9 -5.45 -3.49 13.10
GEOGRAPHIC INDICES
Mid-Atlantic Thrifts 1,724.1 1.806.1 1,735.2 1.337.6 -4.54 -0.64 28.90
Midwestern Thrifts 1,826.7 1,883.4 1,832.9 1,455.5 -3.01 -0.34 25.51
New England Thrifts 731.8 767.8 778.3 593.0 -4.69 -5.97 23.42
Southeastern Thrifts 704.7 770.7 776.0 606.8 -8.56 -9.18 16.13
Southwestern Thrifts 510.0 539.1 533.5 418.4 -5.39 -4.40 21.91
Western Thrifts 733.2 797.8 778.8 725.6 -8.11 -5.86 1.05
ASSET SIZE INDICES
Less than $250M 829.1 855.0 869.9 723.8 -3.03 -4.70 14.55
$250M to $500M 1,262.6 1,305.4 1,312.3 1,012.6 -3.28 -3.79 24.69
$500M to 61B 832.2 851.6 846.8 669.1 -2.28 -1.73 24.37
$1B to $5B 945.4 1,015.9 956.8 745.8 -6.94 -1.19 26.77
Over $5B 486.9 521.1 512.3 451.2 -6.56 -4.94 7.92
COMPARATIVE INDICES
Bow Jones Industrials 8,883.3 8.952.0 7,908.3 8.222.6 -0.77 12.33 8.03
S&P 500 1,120.7 1,133.8 970.4 954.3 -1.16 15.48 17.43
All SNL indices are market-value weighted: i.e.. an institutions effect on an
index is proportionate to that institution's market capitalization. All SNL
thrift indices, except for the SNL MHC index, began at 100 on March 30, 1984 The
SNL MHC index began at 201.082 on Dec. 31, 1992, the level of the SNL Thrift
Index on that date. On March 30, 1984, the S&P 500 closed at 159.2 and the Dow
Jones Industrials stood at 1164,9.
Mid-Atlamic: DE, DC, MD, NJ, NY, PA, PR; Midwest: IA. IL. IN. KS. KY. MI. MN.
MO. ND. NE. OH. SD. WI
New England: CT, MA, ME, NH, RI, VT; Southeast: AL, AR, FL, GA, MS, NC, SC, TN,
VA,WA;
Southwest: Co, LA, NM, OK, TX, UT; West: AZ, AK, CA, HI, ID, MT, NV, OR, WA. WY
EXHIBIT IV-4
MASSACHUSETTS THRIFT MERGER AND ACQUISITION ACTIVITY
1997 TO PRESENT
Seller Financials at Announcement
-------------------------------------------------------
Total Total YTD YTD NPAs Rsrvs/
Annd Comp Assets Equity ROAA ROAE Assets NPLs
Date Date Buyer ST Seller ST ($000) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
07/20/98 Pending Peoples Heritage Fin ME SIS Bancorp, Inc. MA 1,793,968 7.15 0.93 13.13 0.42 345.56
02/02/98 Pending 1855 Bancorp MA Sandwich Bancorp MA 518,697 7.84 0.98 12.38 0.56 176.50
12/15/97 08/07/98 UST Corp MA Affiliated Cmty Bncp MA 1,128,579 9.71 1.10 11.22 0.34 218.71
12/10/97 07/21/98 UST Corp MA Somerset Svgs Bk MA 520,339 6.60 1.15 18.72 5.91 31.60
10/23/97 02/27/98 Eastern Bank Corp MA Emerald Isle Bncp MA 443,503 6.99 0.88 12.59 0.17 416.26
12/15/97 01/01/98 Country Bank for Sav MA Leicester Savings Bk MA 31,249 3.65 -3.44 -74.83 5.75 51.12
05/28/97 10/31/97 South Weymouth SB MA Weymouth SB MA 173,557 8.24 0.62 7.73 0.45 190.73
02/26/97 07/22/97 MASSBANK Corporation MA Glendale Co-Op Bank MA 36,947 16.23 0.75 4.73 0 NA
09/10/96 05/01/97 Berkshire Cnty SB MA Great Barrington SB MA 274,165 13.93 1.49 10.26 0.63 122.04
11/04/96 03/04/97 Citizens Fin'l Group RI Grove Bank MA 598,507 6.49 0.91 14.35 0.58 128.33
11/01/96 02/21/97 Bay State FSB MA Union FS&LA MA 38,797 7.45 -0.16 -2.23 0.59 73.01
08/30/96 01/03/97 UST Corp MA Walden Bancorp, Inc. MA 1,051,743 8.07 1.14 12.18 0.91 150.25
08/27/96 01/02/97 Grove Bank MA Greater Boston Bk MA 150,167 7.76 0.37 4.72 1.49 259.68
Average 520,017 8.47 0.52 3.46 1.37 180.32
Median 443,503 7.76 0.91 11.22 0.58 163.38
Deal Terms and Pricing at Announcement
------------------------------------------
Deal Deal Deal
Annd Comp Value Pr/Shr Consid. Pr/Bk
Date Date Buyer ST Seller ST ($M) ($) Type (%)
- ---------------------------------------------------------------------------------------------------------------------
07/20/98 Pending Peoples Heritage Fin ME SIS Bancorp, Inc. MA 427.1 57.236 Com Stock 312.77
02/02/98 Pending 1855 Bancorp MA Sandwich Bancorp MA 131.1 64.000 Com Stock 295.89
12/15/97 08/07/98 UST Corp MA Affiliated Cmty Bncp MA 277.0 39.921 Com Stock 231.02
12/10/97 07/21/98 UST Corp MA Somerset Svgs Bk MA 95.9 5.629 Com Stock 273.25
10/23/97 02/27/98 Eastern Bank Corp MA Emerald Isle Bncp MA 76.7 33.000 Cash 239.48
12/15/97 01/01/98 Country Bank for Sav MA Leicester Savings Bk MA NA NA NA NA
05/28/97 10/31/97 South Weymouth SB MA Weymouth SB MA NA NA NA NA
02/26/97 07/22/97 MASSBANK Corporation MA Glendale Co-Op Bank MA 7.2 28.000 Cash 115.46
09/10/96 05/01/97 Berkshire Cnty SB MA Great Barrington SB MA NA NA NA NA
11/04/96 03/04/97 Citizens Fin'l Group RI Grove Bank MA 91.8 51.000 Cash NA
11/01/96 02/21/97 Bay State FSB MA Union FS&LA MA NA NA NA NA
08/30/96 01/03/97 UST Corp MA Walden Bancorp, Inc. MA 165.9 30.875 Com Stock 168.90
08/27/96 01/02/97 Grove Bank MA Greater Boston Bk MA 18.0 27.561 Mixture 138.62
Average 143.4 37.469 221.92
Median 95.9 33.000 235.25
Deal Terms and Pricing at Announcement
--------------------------------------
Deal Pr/ Deal Pr/Deal Pr/TgBkPr/
Annd Comp Tg Bk 4-Qtr Assets CoreDp
Date Date Buyer ST Seller ST (%) EPS(x) (%) (%)
- -------------------------------------------------------------------------------------------------------------
07/20/98 Pending Peoples Heritage Fin ME SIS Bancorp, Inc. MA 312.77 32.34 23.81 24.67
02/02/98 Pending 1855 Bancorp MA Sandwich Bancorp MA 306.51 26.12 25.27 24.00
12/15/97 08/07/98 UST Corp MA Affiliated Cmty Bncp MA 232.23 22.94 24.54 26.57
12/10/97 07/21/98 UST Corp MA Somerset Svgs Bk MA 273.25 18.16 18.43 15.19
10/23/97 02/27/98 Eastern Bank Corp MA Emerald Isle Bncp MA 239.48 21.02 17.29 14.66
12/15/97 01/01/98 Country Bank for Sav MA Leicester Savings Bk MA NA NA NA NA
05/28/97 10/31/97 South Weymouth SB MA Weymouth SB MA NA NA NA NA
02/26/97 07/22/97 MASSBANK Corporation MA Glendale Co-Op Bank MA 115.46 24.56 19.49 4.22
09/10/96 05/01/97 Berkshire Cnty SB MA Great Barrington SB MA NA NA NA NA
11/04/96 03/04/97 Citizens Fin'l Group RI Grove Bank MA NA NA NA NA
11/01/96 02/21/97 Bay State FSB MA Union FS&LA MA NA NA NA NA
08/30/96 01/03/97 UST Corp MA Walden Bancorp, Inc. MA 196.16 16.16 15.77 11.38
08/27/96 01/02/97 Grove Bank MA Greater Boston Bk MA 138.62 9.33 10.77 5.17
Average 226.81 21.33 19.42 15.73
Median 235.86 21.98 18.96 14.93
Source: SNL Securities, LC.
EXHIBIT IV-5
Revere Federal Savings
Directors and Management Summary Resumes
Ernest F. Becker has been a director of the Bank since 1977. Mr. Becker, a
licensed engineer, served as Chief Engineer, Vice President and President of
Whitmore Company, an engineering company located in Revere, Massachusetts, from
1952 until his retirement in 1996.
Arno P. Bommer has served on the Board of Directors of the Bank since 1955.
He was elected to the position of Chairman of the Bank's Board of Directors in
1978. Mr. Bommer is a consultant to both the Massachusetts Dental Service
Corporation and the Division of Medical Assistance of the Commonwealth of
Massachusetts. He is also a partner in Fanuiel Associates, which provides dental
office reviews throughout the Commonwealth of Massachusetts. Mr. Bommer is a
also a licensed dentist and had a private practice in Revere, Massachusetts
before his retirement in 1996.
Theodore E. Charles has been a director of the Bank since 1996. Mr. Charles
is the Chairman of the Board and Chief Executive Officer of Investors Capital
Holdings which is located in Lynnfield, Massachusetts. As Chairman and Chief
Executive Officer of Investors Capital Holdings, Mr. Charles is responsible for
supervising the brokerage and investment services provided by its affiliates,
Investors Capital Corporation, a brokerage concern registered with the National
Association of Securities Dealers and Eastern Point Advisors, registered
investment advisors.
Anthony R. Conte was elected to the Bank's Board of Directors in 1988. Mr.
Conte has been a practicing attorney since 1974. He is presently the Regional
Solicitor for the U.S. Department of the Interior, Northeast Region.
Carmen R. Mattuchio has served on the Board of Directors of the Bank since
1994. Mr. Mattuchio is the owner of Burnett & Moynihan, Inc., a building
materials supplier, located in Revere, Massachusetts. Mr. Mattuchio has been
self-employed by Burnett & Moynihan for the past 20 years.
James J. McCarthy has served as President and Chief Executive Officer of
the Bank since 1989. He has also served as a director of the Bank since 1989.
Prior to joining the Bank, Mr. McCarthy, a CPA, was employed by the predecessor
to Ernst & Young, Boston, Massachusetts, serving in a variety of audit
functions. Mr. McCarthy has also been employed by Pell Rudman & Company, a
Broker Dealer/Investment Advisor firm as a consultant with respect to accounting
and reporting to the NASD. Mr. McCarthy is on the Board of Directors of the
Massachusetts Bankers Association and is involved in many local Revere charities
and business organizations including the Revere Chamber of Commerce, Revere
Rotary and the Revere Partnership for Economic Development. Mr. McCarthy also
served as the Executive Committee Chairman of the Massachusetts Thrift Fund for
Economic Development until its dissolution in 1997.
J. Michael O'Brien has been a director of the Bank since 1997. He is the
President, Chief Executive Officer and a principal of Eagle Air Freight, a
domestic air freight provider, founded in 1981 and based in Chelsea,
Massachusetts. Mr. O'Brien is also the trustee and a principal of O'Brien Realty
Trust. O'Brien Realty Trust owns and leases warehouse and commercial office
space in Chelsea, Massachusetts.
EXHIBIT IV-5
Revere Federal Savings
Directors and Management Summary Resumes
Angelo A. Todisco was elected to the Board of Directors of the Bank in
1980. Mr. Todisco is a retired licensed public adjuster and serves as President
of DePiano & Todisco Adjusters, Inc. which appraises damages to residential and
commercial properties on behalf of its clients in connection with the settlement
of insurance claims.
John J. Verrengia has served on the Board of Directors of the Bank since
1994. Mr. Verrengia is a certified public accountant and is currently
self-employed as principal accountant of John J. Verrengia, CPA, a professional
corporation. Mr. Verrengia is also a registered investment advisor and provides
financial and investment advice to clients through Anchor Investments, a
consulting firm which he founded in 1992.
EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS
Anthony J. Patti, age 43, has been the Executive Vice President and Chief
Financial Officer of the Bank since 1992. He is responsible for the financial,
lending operations, information systems customer service and marketing functions
of the Bank on a day-to-day basis. Prior to joining the Bank, Mr. Patti served
as an Operations Specialist for the Resolution Trust Corporation. Mr. Patti has
also been employed by Home Owners Savings Bank, F.S.B., located in Boston,
Massachusetts where he served as a First Vice President and Controller and by
Andover Savings Bank, Andover, Massachusetts, where he served as Comptroller.
Judith E. Tenaglia, age 46, has been employed by the Bank for 21 years and
has been Treasurer of the Bank since 1991. Prior to becoming the Bank's
Treasurer, Ms. Tenaglia worked in the customer service department of the Bank.
EXHIBIT IV-6
Revere Federal Savings
Pro Forma Regulatory Capital Ratios
COMPANY PRO FORMA BASED UPON SALE AT $10.00 PER SHARE
BANK -----------------------------------------------------------
HISTORICAL MAXIMUM AS
CAPITALIZATION MINIMUM MIDPOINT MAXIMUM ADJUSTED
AS OF 379,525 466,500 513,475 590,496
JUNE 30, 1998 SHARES SHARES SHARES SHARES(1)
------------- ------ ------ ------ ---------
(IN THOUSANDS)
Deposits(2)........................... $ 62,976 $ 62,976 $ 62,976 $ 62,976 $ 62,976
Borrowed funds........................ 19,284 19,284 19,284 19,284 19,284
-------- -------- -------- -------- --------
Total deposits and borrowed funds..... $ 82,260 $ 82,260 $ 82,260 $ 82,260 $ 82,260
======== ======== ======== ======== ========
Stockholders' equity:
Common stock, $.01 par value,
5,000,000 shares authorized;
shares to be issued as reflected $ --- $ 8 $ 10 $ 11 $ 13
Additional paid-in capital(3)..... --- 3,361 4,017 4,673 5,427
Equity(4) ........................ 6,374 6,374 6,374 6,374 6,374
Less:
Common Stock acquired by ESOP(5). --- (304) (357) (411) (472)
Common Stock acquired by
Restricted Stock Program(6).... --- (152) (179) (205) (236)
-------- -------- ------- -------- --------
Total stockholders' equity............ $ 6,374 $ 9,287 $ 9,865 $ 10,442 $ 11,106
======== ======== ======= ======== ========
- ---------------------------
(1) As adjusted to give effect to an increase in the number of shares which
could occur due to an increase in the Estimated Price Range of up to 15% as
a result of regulatory considerations or changes in market or general
financial and economic conditions following the commencement of the
Subscription Offering.
(2) Does not reflect withdrawals from deposit accounts for the purchase of
Common Stock in the Offering. Such withdrawals would reduce pro forma
deposits by the amount of such withdrawals.
(3) No effect has been given to the issuance of additional shares of Common
Stock pursuant to the Stock Company's Stock Option Plan intended to be
adopted by the Stock Company. An amount equal to 10% of the shares of
Common Stock issued in the Offering will be reserved for issuance upon the
exercise of options to be granted under the Stock Option Plan. See "Risk
Factors--Possible Dilutive Effect of Stock Option and Restricted Stock
Programs" and "Management--Benefits--Stock Option Plan."
(4) The retained earnings of the Bank will be substantially restricted after
the Reorganization. See "The Reorganization--Effects of the
Reorganization--Liquidation Rights" and "Regulation--Regulation of Federal
Savings Associations--Limitations on Capital Distributions."
(5) Assumes that 8% of the shares issued in connection with the Offering will
be purchased by the ESOP and that the funds used to acquire such shares
will be borrowed from the Stock Company. See "Use of Proceeds." The Common
Stock acquired by the ESOP is reflected as a reduction of stockholders'
equity. See "Management of the Bank--Benefits--Employee Stock Ownership
Plan and Trust" and Footnote 3 to the tables under "Pro Forma Data."
(6) Assumes that subsequent to the Reorganization, an amount equal to 4% of the
shares of Common Stock issued in the Offering, is purchased by the
Restricted Stock Program. The Common Stock purchased by the Stock Program
is reflected as a reduction of stockholders' equity. See "Risk
Factors--Possible Dilutive Effect of Stock Options and Restricted Stock
Programs," Footnote 4 to the tables under "Pro Forma Data" and
"Management--Benefits--Restricted Stock Program."
EXHIBIT IV-7
PRO FORMA ANALYSIS SHEET
Revere Federal Savings Bank
Prices as of August 21, 1998
SAIF-Insured
Peer Group Massachusetts Companies Institutions
Subject @ ---------------- ----------------------- ------------
Price Multiple Symbol Midpoint Mean Median Mean Median Mean
-------------- ------ -------- ---- ------ ---- ------ ----
Price/Reported Earnings Multiple = P/E 19.86 x 19.61x 19.62x 17.77x 13.97x 18.68x
Price/Core Earnings Multiple = P/CE 19.86 x 20.38x 20.09x 21.07x 15.87x 19.50x
Price/Book Ratio = P/B 66.45% 93.76% 91.62% 119.29% 157.68% 141.77%
Price/Tangible Book Ratio = P/TB 66.45% 95.14% 91.62% 121.66% 158.85% 145.22%
Price/Assets Ratio = P/A 9.82% 21.68% 20.13% 10.52% 15.31% 18.05%
Valuation Parameters
--------------------
Pre-Conv. Reported Earnings(Y) $317,000 ESOP Stock Purchases (E) 8.00%(5)
Pre-Conversion Core Earnings $317,000 Cost of ESOP Borrowings (S) 0.00%(4)
Pre-Conversion Book Value (B) $6,374,214 ESOP Amortization (T) 10.00 years
Pre-Conv. Tang. Book Value (B) $6,374,214 RRP Amount (M) 4.00%
Pre-Conversion Assets (A) $88,780,275 RRP Vesting (N) 5.00 years (5)
Reinvestment Rate (2)(R) 3.17% Percentage Sold (PCT) 100.00%
Est. Conversion Expenses (3)(X) 4.62%
Tax rate (TAX) 41.00%
Calculation of Pro Forma Value After Conversion
- -----------------------------------------------
1. V= P/E * (Y) V= $9,500,000
---------------------------------------------------
1 - P/E * PCT * ((1-X-E-M-F)*R - (1-TAX)*E/T - (1-TAX)*M/N)
2. V= P/B * (B+Z) V= $9,500,000
----------------------
1 - P/B * PCT * (1-X-E-M-F)
3. V= P/A * (A+Z) V= $9,500,000
----------------------
1 - P/A * PCT * (1-X-E-M-F)
Aggregate
Shares Sold to Price Per Gross Offering Total Shares Market Value
Conclusion Public Share Proceeds Issued of Stock Issued
- ----------- -------------- --------- -------------- ------------- ---------------
Minimum 807,500 10.00 $8,075,000 807,500 8,075,000
Midpoint 950,000 10.00 9,500,000 950,000 9,500,000
Maximum 1,092,500 10.00 10,925,000 1,092,500 10,925,000
Supermaximum 1,256,375 10.00 12,563,750 1,256,375 12,563,750
- --------------------------------------------------------------------------------
(1) Pricing ratios shown reflect the midpoint value.
(2) Net return reflects a reinvestment rate of 5.37 percent, and a tax rate of
41.00 percent.
(3) Offering expenses shown at estimated midpoint value.
(4) No cost is applicable since holding company will fund the ESOP loan.
(5) ESOP and MRP amortize over 10 years and 5 years, respectively; amortization
tax effected at 41.00 percent.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Minimum
1. Offering Proceeds $8,075,000
Less: Estimated Offering Expenses 425,952
-------
Net Conversion Proceeds $7,649,048
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $7,649,048
Less: Non-Cash Stock Purchases (1) 969,000
-------
Net Proceeds Reinvested $6,680,048
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $211,644
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 38,114
Less: Recognition Plan Vesting (4) 38,114
------
Net Earnings Increase $135,416
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported) $317,000 $135,416 $452,416
12 Months ended June 30, 1998 (core) $317,000 $135,416 $452,416
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,374,214 $6,680,048 $13,054,262
June 30, 1998 (Tangible) $6,374,214 $6,680,048 $13,054,262
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,780,275 $6,680,048 $95,460,323
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 10 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Midpoint
1. Offering Proceeds $9,500,000
Less: Estimated Offering Expenses 438,473
-------
Net Conversion Proceeds $9,061,527
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $9,061,527
Less: Non-Cash Stock Purchases (1) 1,140,000
---------
Net Proceeds Reinvested $7,921,527
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $250,978
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 44,840
Less: Recognition Plan Vesting (4) 44,840
------
Net Earnings Increase $161,298
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported) $317,000 $161,298 $478,298
12 Months ended June 30, 1998 (core) $317,000 $161,298 $478,298
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,374,214 $7,921,527 $14,295,741
June 30, 1998 (Tangible) $6,374,214 $7,921,527 $14,295,741
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,780,275 $7,921,527 $96,701,802
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 10 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Maximum
1. Offering Proceeds $10,925,000
Less: Estimated Offering Expenses 450,994
-------
Net Conversion Proceeds $10,474,006
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $10,474,006
Less: Non-Cash Stock Purchases (1) 1,311,000
---------
Net Proceeds Reinvested $9,163,006
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $290,312
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 51,566
Less: Recognition Plan Vesting (4) 51,566
------
Net Earnings Increase $187,180
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported) $317,000 $187,180 $504,180
12 Months ended June 30, 1998 (core) $317,000 $187,180 $504,180
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,374,214 $9,163,006 $15,537,220
June 30, 1998 (Tangible) $6,374,214 $9,163,006 $15,537,220
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,780,275 $9,163,006 $97,943,281
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 10 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Supermaximum Value
1. Offering Proceeds $12,563,750
Less: Estimated Offering Expenses 465,366
-------
Net Conversion Proceeds $12,098,384
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $12,098,384
Less: Non-Cash Stock Purchases (1) 1,507,650
---------
Net Proceeds Reinvested $10,590,734
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $335,546
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 59,301
Less: Recognition Plan Vesting (4) 59,301
------
Net Earnings Increase $216,944
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported) $317,000 $216,944 $533,944
12 Months ended June 30, 1998 (core) $317,000 $216,944 $533,944
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,374,214 $10,590,734 $16,964,948
June 30, 1998 (Tangible) $6,374,214 $10,590,734 $16,964,948
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,780,275 $10,590,734 $99,371,009
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 10 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
RP FINANCIAL, LC.
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
EXHIBIT IV-9
Core Earnings Analysis
Comparable Institution Analysis
For the Twelve Months Ended March 31, 1998
Estimated
Net Income Less: Net Tax Effect Less: Extd Core Income Estimated
to Common Gains(Loss) @ 34% Items to Common Shares Core EPS
---------- ----------- ---------- ---------- ---------- ---------- -------
($000) ($000) $000) ($000) ($000) ($000) ($)
Comparable Group
- ----------------
ALLB Alliance Bank MHC of PA (19.9) 2,014 0 0 0 2,014 3,273 0.62
BCSB BCSB Bankcorp MHC of MD (38.6)(P) -- -- -- -- -- 6,117 0.36
BRKL Brookline Bncp MHC of MA(47.0) 13,726 -78 27 0 13,675 29,095 0.47
FFFL Fidelity Bcsh MHC of FL (47.9) 7,277 -1,566 532 0 6,243 6,802 0.92
SKBO First Carnegie MHC of PA(45.0) 969 259 -88 0 1,140 2,300 0.50
GBNK Gaston Fed Bncp MHC of NC(47.0(P) -- -- -- -- -- 4,497 0.43
HARS Harris Fin. MHC of PA (24.9) 18,811 -5,261 1,789 0 15,339 33,965 0.45
JXSB Jcksnville SB,MHC of IL (45.6) 969 -511 174 0 632 1,908 0.33
LFED Leeds Fed Bksr MHC of MD (36.3 3,432 -2 1 0 3,431 5,182 0.66
LIBB Liberty Bancorp MHC of NJ (47)(P) -- -- -- -- -- 3,901 0.69
NBCP Niagara Bancorp of NY MHC(45.4(P) -- -- -- -- -- 29,756 0.46
NWSB Northwest Bcrp MHC of PA (30.8 20,533 -37 13 0 20,509 46,841 0.44
PBHC Pathfinder BC MHC of NY (45.2) 1,751 -497 169 0 1,423 2,831 0.50
PBCT Peoples Bank, MHC of CT (41.2) 95,800 -67,500 22,950 0 51,250 64,130 0.80
PHSB Ppls Home SB, MHC of PA (45.0) 1,725 -262 89 0 1,552 2,760 0.56
PLSK Pulaski SB, MHC of NJ (47.0) 1,161 0 0 0 1,161 2,108 0.55
SBFL SB Fngr Lakes MHC of NY (33.1) 933 -218 74 0 789 3,570 0.22
WAYN Wayne Svgs Bks MHC of OH (48.2 1,849 -237 81 0 1,693 2,486 0.68
WCFB Wbstr Cty FSB MHC of IA (45.6) 1,345 0 0 0 1,345 2,114 0.64
(P) Pro forma financial data reflective of new conversion.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
EXHIBIT IV-10
PRO FORMA ANALYSIS SHEET
Revere Federal Savings Bank
Prices as of August 21, 1998
SAIF-Insured
Peer Group Massachusetts Companies Institutions
Subject @ -------------- ------------------------ -----------
Price Multiple Symbol Midpoint Mean Median Mean Median Mean
- -------------- ------ -------- ---- ------ ---- ------ ----
Price/Reported Earnings Multiple = P/E 24.77x 24.81x 26.15x 15.60x 13.97x 18.68x
Price/Core Earnings Multiple = P/CE 24.77x 26.68x 27.34x 17.13x 15.87x 19.50x
Price/Book Ratio = P/B 97.29% 188.39% 181.47% 160.35% 157.68% 141.77%
Price/Tangible Book Ratio = P/TB 97.29% 186.56% 181.47% 164.31% 158.85% 145.22%
Price/Assets Ratio = P/A 10.31% 24.61% 22.77% 15.42% 15.31% 18.05%
Valuation Parameters
- --------------------
Pre-Conv. Reported Earnings(Y) $315,131 ESOP Stock Purchases (E) 8.00%(5)
Pre-Conversion Core Earnings $315,131 Cost of ESOP Borrowings(S) 0.00%(4)
Pre-Conversion Book Value (B) $6,274,000 ESOP Amortization (T) 10.00 years
Pre-Conv. Tang. Book Value $6,274,000 RRP Amount (M) 4.00%
Pre-Conversion Asset (A) $88,680,000 RRP Vesting (N) 5.00 years(5)
Reinvestment Rate (2)(R) 3.17% Percentage Sold (PCT) 47.00%
Est. Conversion Expenses (3)(X) 9.82%
Tax rate (TAX) 41.00%
Calculation of Pro Forma Value After Conversion
- -----------------------------------------------
1. V= P/E * (Y) V= $9,500,000
---------------------------------------------------
1 - P/E * PCT * ((1-X-E-M-F)*R - (1-TAX)*E/T - (1-TAX)*M/N)
2. V= P/B=* (B+Z) V= $9,500,000
----------------------
1 - P/B * PCT * (1-X-E-M-F)
3. V= P/A=* (A+Z) V= $9,500,000
----------------------------
1 - P/A * PCT * (1-X-E-M-F)
Aggregate
Shares Issued to Shares Sold to Price Per Gross Offering Total Shares Market Value
Conclusion MHC Public Share Proceeds Issued of Stock Issued
- ---------- --- ------ ----- -------- ------ ---------------
Minimum 427,975 379,525 10.00 $3,795,250 379,525 3,795,250
Midpoint 503,500 446,500 10.00 4,465,000 446,500 4,465,000
Maximum 579,025 513,475 10.00 5,134,750 513,475 5,134,750
Supermaximum 665,879 590,496 10.00 5,904,963 590,496 5,904,963
- ---------------------------------------
(1) Pricing ratios shown reflect the midpoint value.
(2) Net return reflects a reinvestment rate of 5.37 percent, and a tax rate of
41.00 percent.
(3) Offering expenses shown at estimated midpoint value.
(4) No cost is applicable since holding company will fund the ESOP loan.
(5) ESOP and MRP amortize over 7 years and 5 years, respectively; amortization
tax effected at 41.00 percent.
Exhibit IV-11
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Minimum
1. Offering Proceeds $3,795,250
Estimated Offering Expenses 425,952
-------
Net Conversion Proceeds $3,369,298
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $3,369,298
Less: Non-Cash Stock Purchases (1) 455,430
Net Proceeds Reinvested $2,913,868
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $92,320
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 17,914
Less: Recognition Plan Vesting (4) 17,914
------
Net Earnings Increase $56,493
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported, tax-effected) $315,131 $56,493 $371,624
12 Months ended June 30, 1998 (core, tax-effected) $315,131 $56,493 $371,624
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,274,000 $2,913,868 $9,187,868
June 30, 1998 (Tangible) $6,274,000 $2,913,868 $9,187,868
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,680,000 $2,913,868 $91,593,868
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 7 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
Exhibit IV-11
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Midpoint
1. Offering Proceeds $4,465,000
Less: Estimated Offering Expenses 438,473
-------
Net Conversion Proceeds $4,026,527
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $4,026,527
Less: Non-Cash Stock Purchases (1) 535,800
Net Proceeds Reinvested $3,490,727
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $110,597
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 21,075
Less: Recognition Plan Vesting (4) 21,075
------
Net Earnings Increase $68,447
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported, tax-effected) $315,131 $68,447 $383,578
12 Months ended June 30, 1998 (core, tax-effected) $315,131 $68,447 $383,578
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,274,000 $3,490,727 $9,764,727
June 30, 1998 (Tangible) $6,274,000 $3,490,727 $9,764,727
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,680,000 $3,490,727 $92,170,727
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3 ESOP borrowings are amortized over 7 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
Exhibit IV-11
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Maximum
1. Offering Proceeds $5,134,750
Less: Estimated Offering Expenses 450,994
-------
Net Conversion Proceeds $4,683,756
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $4,683,756
Less: Non-Cash Stock Purchases (1) 616,170
Net Proceeds Reinvested $4,067,586
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $128,873
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 24,236
Less: Recognition Plan Vesting (4) 24,236
------
Net Earnings Increase $80,401
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported, tax-effected) $315,131 $80,401 $395,532
12 Months ended June 30, 1998 (core, tax-effected) $315,131 $80,401 $395,532
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,274,000 $4,067,586 $10,341,586
June 30, 1998 (Tangible) $6,274,000 $4,067,586 $10,341,586
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,680,000 $4,067,586 $92,747,586
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 7 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
Exhibit IV-11
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Revere Federal Savings
At the Supermaximum Value
1. Offering Proceeds $5,904,963
Less: Estimated Offering Expenses 465,366
-------
Net Conversion Proceeds $5,439,597
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $5,439,597
Less: Non-Cash Stock Purchases (1) 708,596
Net Proceeds Reinvested $4,731,001
Estimated net incremental rate of return 3.17%
-----
Earnings Increase $149,892
Less: Estimated cost of ESOP borrowings (2) 0
Less: Amortization of ESOP borrowings (3) 27,871
Less: Recognition Plan Vesting (4) 27,871
------
Net Earnings Increase $94,149
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended June 30, 1998 (reported, tax-effected) $315,131 $94,149 $409,280
12 Months ended June 30, 1998 (core, tax-effected) $315,131 $94,149 $409,280
Before Net Cash After
4.Pro Forma Net Worth Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $6,274,000 $4,731,001 $11,005,001
June 30, 1998 (Tangible) $6,274,000 $4,731,001 $11,005,001
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
---------- -------- ----------
June 30, 1998 $88,680,000 $4,731,001 $93,411,001
(1) Includes ESOP and MRP stock purchases equal to 8.0 and 4.0 percent of the
offering, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding
company.
(3) ESOP borrowings are amortized over 7 years, amortization expense is
tax-effected at a 41.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
41.00 percent.
EXHIBIT V-1
RP Financial, LC.
Firm Qualifications Statement
FIRM QUALIFICATION STATEMENT
RP Financial provides financial and management consulting and valuation services
to the financial services industry nationwide, particularly federally-insured
financial institutions. RP Financial establishes long-term client relationships
through its wide array of services, emphasis on quality and timeliness, hands-on
involvement by our principals and senior consulting staff, and careful
structuring of strategic plans and transactions. RP Financial's staff draws from
backgrounds in consulting, regulatory agencies and investment banking, thereby
providing our clients with considerable resources.
STRATEGIC AND CAPITAL PLANNING
RP Financial's strategic and capital planning services are designed to provide
effective workable plans with quantifiable results. Through a program known as
SAFE (Strategic Alternatives Financial Evaluations), RP Financial analyzes
strategic options to enhance shareholder value or other established objectives.
Our planning services involve conducting situation analyses; establishing
mission statements, strategic goals and objectives; and identifying strategies
for enhancement of franchise value, capital management and planning, earnings
improvement and operational issues. Strategy development typically includes the
following areas: capital formation and management, asset/liability targets,
profitability, return on equity and market value of stock. Our proprietary
financial simulation model provides the basis for evaluating the financial
impact of alternative strategies and assessing the feasibility/compatibility of
such strategies with regulations and/or other guidelines.
MERGER AND ACQUISITION SERVICES
RP Financial's merger and acquisition (M&A) services include targeting
candidates and potential acquirors, assessing acquisition merit, conducting
detailed due diligence, negotiating and structuring transactions, preparing
merger business plans and financial simulations, rendering fairness opinions and
assisting in implementing post-acquisition strategies. Through our financial
simulations, comprehensive in-house data bases, valuation expertise and
regulatory knowledge, RP Financial's M&A consulting focuses on structuring
transactions to enhance shareholder returns.
VALUATION SERVICES
RP Financial's extensive valuation practice includes valuations for a variety of
purposes including mergers and acquisitions, mutual-to-stock conversions, ESOPs,
subsidiary companies, mark-to-market transactions, loan and servicing
portfolios, non-traded securities, core deposits, FAS 107 (fair market value
disclosure), FAS 122 (loan servicing rights) and FAS 123 (stock options). Our
principals and staff are highly experienced in performing valuation appraisals
which conform with regulatory guidelines and appraisal industry standards. RP
Financial is the nation's leading valuation firm for mutual-to-stock conversions
of thrift institutions.
OTHER CONSULTING SERVICES AND DATA BASES
RP Financial offers a variety of other services including branching strategies,
feasibility studies and special research studies, which are complemented by our
quantitative and computer skills. RP Financial's consulting services are aided
by its in-house data base resources for commercial banks and savings
institutions and proprietary valuation and financial simulation models.
YEAR 2000 SERVICES
RP Financial, through a relationship with a computer research and development
company with a proprietary methodology, offers Year 2000 advisory and conversion
services to financial institutions which are more cost effective and less
disruptive than most other providers of such service.
RP Financial's Key Personnel (Years of Relevant Experience)
Ronald S. Riggins, Managing Director (18)
William E. Pommerening, Managing Director (14)
Gregory E. Dunn, Senior Vice President (16)
James P. Hennessey, Senior Vice President (13)
James J. Oren, Senior Vice President (11)