RYAN BECK & CO. April 14, 2004
Schedule 3
MUTUAL HOLDING COMPANIES
UPDATED ANALYSIS
APRIL 2004
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Clifton Savings Bancorp: Fully Converted Worksheet
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(Dollars in thousands, except share data)
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Company Description
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Clifton Savings Bancorp, Inc (CSBK-$12.12-NASDAQ-Not Rated) is the holding company for Clifton Savings Bank, S.L.A, headquartered in
Clifton, New Jersey. The company completed a minority stock offering in March 2004, selling 45.0% of its total shares outstanding.
Proforma for the offering, CSBK has approxiamtely $749 million in assets and $188 million in equity. The Bank provides community
banking services through 10 offices in the northeastern New Jersey counties of Passaic and Bergen.
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Second Step Assumptions
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Stock Price on Apr 13, $12.12 Common Equity $188,350 Common Shares 30,545,406
2004
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Re-Investment Rate 2.25% Tang Common/Tang Assets 25.1% MHC Shares 16,806,694
(pretax)
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Tax Rate (marginal) 35.0% ESOP % 4.0% Minority Shares 13,738,712
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2004 Est. Net Income 3,371 ESOP Amort period 20 Minority % 45.0%
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Assets (pre 2nd step) 749,151 MRP % 4.0% Underwriting 1.0%
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Intangible 0 MRP Amort period 5 Fixed Offering 775
Expenses
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Midpoint Maximum Super Max
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Appraisal Value $314,125 $361,244 $415,430
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Offering Price per Share $10.00 $10.00 $10.00
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Shares Offered 17,283,786 19,876,354 22,857,808
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Exchange Shares 14,128,714 16,248,021 18,685,224
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Shares Outstanding 31,412,500 36,124,375 41,543,031
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Shares Outstanding w/SOP 93-6 30,202,635 34,733,030 39,942,985
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Exchange Ratio 1.0284 1.1826 1.3600
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Adjusted Minority % 45.0% 45.0% 45.0%
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Adjusted Majority % 55.0% 55.0% 55.0%
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Gross Proceeds $172,838 $198,764 $228,578
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Estimated Expenses (2,503) (2,763) (3,061)
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Estimated Net Proceeds 170,334 196,001 225,517
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Capital at the MHC 0 0 0
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Stock Acquired by ESOP (6,914) (7,951) (9,143)
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Stock Acquired by MRP (6,914) (7,951) (9,143)
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Estimated Net Proceeds for Reinvestment $156,507 $180,100 $207,231
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Consolidated Net Income:
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2004 Estimated Earnings $3,371 $3,371 $3,371
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Pro Forma Earnings on Net Proceeds 2,289 2,634 3,031
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Pro Forma ESOP Adjustment (225) (258) (297)
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Pro Forma MRP Adjustment (899) (1,034) (1,189)
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Pro Forma Operating Net Income $4,537 $4,713 $4,916
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Pro Forma Net Income per Share $0.15 $0.14 $0.12
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Stockholders' Equity:
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$188,350 $188,350 $188,350
Historical
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Capital at the MHC 0 0 0
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Estimated Net Proceeds 170,334 196,001 225,517
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Stock Acquired by ESOP (6,914) (7,951) (9,143)
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Stock Acquired by MRP (6,914) (7,951) (9,143)
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Pro Forma Stockholders' Equity $344,857 $368,450 $395,581
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Pro Forma Stockholders' Tang Equity $344,857 $368,450 $395,581
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Book Value per Share (pro forma) $10.98 $10.20 $9.52
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Tangible Book Value per Share (pro forma) $10.98 $10.20 $9.52
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Return on Assets (pro forma) 0.49% 0.50% 0.50%
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Return on Common Equity (pro forma) 1.0% 0.9% 0.9%
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Common Equity/Assets (pro forma) 37.5% 39.0% 40.6%
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Pro Forma Second Step Pricing:
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Offering Price to Pro Forma Earnings 66.6x 73.7x 81.2x
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Offering Price to Pro Forma Book Value 91% 98% 105%
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Offering Price to Pro Forma Tang Book Value 91% 98% 105%
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Fully Converted Value to Minority Shareholders:
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Current Minority Share Price to Pro Forma Earnings 78.5x 75.5x 72.4x
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Current Minority Share Price to Pro Forma Book Value 107% 100% 94%
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Current Minority Share Price to Pro Forma Tang Book 107% 100% 94%
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Value to Minority Shareholders Assuming Pro Forma 2nd Step Stock At:
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100% of Book Value $11.29 $12.06 $12.95
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110% of Book Value $12.42 $13.27 $14.25
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120% of Book Value $13.55 $14.47 $15.54
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130% of Book Value $14.68 $15.68 $16.84
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