Exhibit 99.1
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CONVERSION APPRAISAL REPORT
CNY FINANCIAL CORPORATION
PROPOSED HOLDING COMPANY FOR
CORTLAND SAVINGS BANK
Cortland, New York
Dated As Of:
June 5, 1998
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Prepared By:
RP Financial, LC.
1700 North Moore Street
Suite 2210
Arlington, Virginia 22209
[LETTERHEAD OF RP FINANCIAL, LC.]
June 5, 1998
Board of Trustees
Cortland Savings Bank
1 North Main Street
Cortland, New York 13045
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 issued in connection with the mutual-to-stock conversion of
Cortland Savings Bank, Cortland, New York ("Cortland" or the "Bank"). The common
stock issued in connection with the Bank's conversion will simultaneously be
acquired by a holding company, CNY Financial Corporation ("CNY Financial" or the
"Holding Company"). Pursuant to the Plan of Conversion, CNY Financial common
stock will be offered in a Subscription Offering with nontransferable
subscription rights being granted to Eligible Account Holders, the ESOP and
Supplemental Eligible Account Holders. To the extent shares remain available for
purchase after filling all orders received in the Subscription Offering, the
Common Stock will be offered in a Direct Community Offering and a Syndicated
Community Offering, with preference given to residents of Cortland County.
This Appraisal is furnished pursuant to the requirements of the Code of
Federal Regulations 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" of the Office
of Thrift Supervision ("OTS"), which have been adopted in practice by the
Federal Deposit Insurance Corporation ("FDIC"), including the most recent
revisions as of October 21, 1994 and applicable regulatory interpretations
thereof.
Description of Reorganization
The Board of Trustees of the Bank has adopted a Plan of Conversion
pursuant to which the Bank will convert from a state chartered mutual savings
bank to a state chartered stock savings bank and issue all of its outstanding
shares to the Holding Company. The Holding Company will sell in the Subscription
Offering and, if necessary, in the Community Offering and Public Offering
Holding Company stock in the amount equal to the appraised value of the Bank.
Immediately following the conversion, the only significant assets of the Holding
Company will be the capital stock of the Bank and the net conversion proceeds
remaining after purchase of the Bank's common stock by the Holding Company. The
Holding Company will use 50 percent of the net conversion proceeds to purchase
the Bank's common stock. A portion of the remaining 50 percent of the net
conversion proceeds will be used to fund a loan to the ESOP with the remainder
to be used as general working capital. In addition, the Holding Company intends
to donate to a charitable foundation (the "Foundation"), immediately following
the conversion, authorized but unissued shares of CNY Financial stock totaling 2
percent of the common stock sold in the conversion.
RP Financial
Board of Trustees
June 5, 1998
Page 2
RP Financial, LC.
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 conversion process.
Valuation Methodology
In preparing our appraisal, we have reviewed Cortland's application for
Approval of Conversion, including the Proxy Statement, as filed with the FDIC
and the New York State Banking Department, and the Holding Company's Form S-1
registration statement as filed with the Securities and Exchange Commission. We
have conducted a financial analysis of the Bank that has included due diligence
related discussions with the Bank's management; KPMG Peat Marwick LLP, the
Bank's independent auditor; Serchuk & Zelermyer, LLP, the Bank's conversion
counsel; and CBIC Oppenheimer Corp and Trident Securities, Inc., who have been
retained by the Bank as 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 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 of Cortland.
We have reviewed the economy in the Bank's primary market area and have compared
the Bank's financial performance and condition with selected publicly-traded
savings institutions with similar characteristics as the Bank's, as well as all
publicly-traded savings institutions. We have reviewed conditions in the
securities markets in general and in the market for savings institution stocks
in particular, including the market for existing savings institution issues and
the market for initial public offerings by savings institutions.
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 and its independent auditors are truthful, accurate and complete.
We did not independently verify the financial statements and other information
provided by the Bank and its independent auditors, 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
liquidation value of Cortland.
RP Financial
Board of Trustees
June 5, 1998
Page 3
Our appraised value is predicated on a continuation of the current
operating environment for the Bank and for all savings institutions. 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 significant world events) may occur from time to time, often with
great unpredictability and may materially impact the value of savings
institution stocks as a whole or the Bank's value alone. It is our understanding
that Cortland intends to remain an independent institution and there are no
current plans for selling control of the Bank as a converted institution. 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 Cortland's stock,
immediately upon completion of the conversion 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 June 5, 1998, the aggregate pro forma market
value of the shares to be issued was $62,475,000 at the midpoint, inclusive of
the shares to be issued to the Foundation, equal to 6,247,500 shares offered at
a per share value of $10.00. Pursuant to the conversion guidelines, the 15
percent offering range indicates a minimum value of $53,103,750 and a maximum
value of $71,846,250. Based on the $10.00 per share offering price, this
valuation range equates to an offering of 5,310,375 shares at the minimum to
7,184,625 shares at the maximum. In the event that the Bank's appraised value is
subject to an increase, up to 8,262,319 shares may be sold at an issue price of
$10.00 per share, for an aggregate market value of $82,623,190, without a
resolicitation.
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 conversion 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 March 31, 1998, the date of the financial data
included in the Holding Company's 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
Board of Trustees
June 5, 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 savings
institution 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
savings institution 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
CORTLAND SAVINGS BANK
Cortland, New York
PAGE
DESCRIPTION NUMBER
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CHAPTER ONE OVERVIEW AND FINANCIAL ANALYSIS
Introduction 1.1
Establishment of Charitable Foundation 1.1
Strategic Discussion 1.2
Balance Sheet Trends 1.5
Income and Expense Trends 1.8
Interest Rate Risk Management 1.11
Lending Activities and Strategy 1.11
Asset Quality 1.14
Funding Composition and Strategy 1.14
Subsidiary Operations 1.15
Legal Proceedings 1.15
CHAPTER TWO MARKET AREA
Introduction 2.1
National Economic Factors 2.2
Market Area Demographics 2.6
Economy 2.7
Deposit Trends and Competition 2.9
Summary 2.9
CHAPTER THREE PEER GROUP ANALYSIS
Selection of Peer Group 3.1
Financial Condition 3.5
Income and Expense Components 3.7
Loan Composition 3.10
Credit Risk 3.10
Interest Rate Risk 3.13
Summary 3.13
TABLE OF CONTENTS
CORTLAND SAVINGS BANK
Cortland, New York
(continued)
PAGE
DESCRIPTION NUMBER
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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 4.4
4. Primary Market Area 4.5
5. Dividends 4.5
6. Liquidity of the Shares 4.7
7. Marketing of the Issue 4.7
A. The Public Market 4.8
B. The New Issue Market 4.13
C. The Acquisition Market 4.14
8. Management 4.17
9. Effect of Government Regulation and Regulatory Reform 4.17
Summary of Adjustments 4.17
Valuation Approaches 4.18
1. Price-to-Tangible Book ("P/TB") 4.19
2. Price-to-Earnings ("P/E") 4.19
3. Price-to-Assets ("P/A") 4.20
Comparison to Recent Conversions 4.20
Valuation Conclusion 4.21
RP Financial, LC.
LIST OF TABLES
CORTLAND SAVINGS BANK
Cortland, New York
TABLE
NUMBER DESCRIPTION PAGE
- ------ ----------- ----
1.1 Historical Balance Sheets 1.6
1.2 Historical Income Statements 1.9
2.1 Cortland County Employment Characteristics 2.7
2.2 Major Cortland County Employers 2.8
2.3 Market Area Unemployment Trends 2.8
2.4 Deposit Summary 2.10
3.1 Peer Group of Publicly-Traded Thrifts 3.3
3.2 Balance Sheet Composition and Growth Rates 3.6
3.3 Income as a Percent of Average Assets and Yields,
Costs, Spreads 3.8
3.4 Loan Portfolio Composition Comparative Analysis 3.11
3.5 Peer Group Credit Risk Comparative Analysis 3.12
3.6 Interest Rate Risk Comparative Analysis 3.14
4.1 Peer Group Market Area Comparative Analysis 4.6
4.2 Conversion Pricing Characteristics 4.15
4.3 Market Pricing Comparatives 4.16
4.4 Public Market Pricing 4.22
RP Financial, LC.
Page 1.1
I. OVERVIEW AND FINANCIAL ANALYSIS
Cortland Savings Bank ("Cortland" or the "Bank") is a state-chartered
mutual savings bank headquartered in Cortland, Cortland County, New York. The
Bank also operates two other branch offices in Cortland County in close
proximity to the City of Cortland. The Bank considers its primary market for
deposits to consist of Cortland County, in particular the areas surrounding the
office locations. Lending activities are also concentrated in Cortland County,
although additional lending activities are performed in the contiguous counties
of Tompkins, Cayuga and Onondaga (see Exhibit I-1). The Bank was chartered as a
New York mutual savings bank in 1866. The Bank is currently a member of the
Federal Home Loan Bank ("FHLB") system and is regulated by the New York State
Banking Department (the "Banking Department"). The Bank's deposits are insured
up to the regulatory maximums by the Bank Insurance Fund ("BIF") of the Federal
Deposit Insurance Corporation ("FDIC"). As of March 31, 1998, the Bank
maintained $232.4 million in assets, $198.2 million in deposits and $31.4
million in stockholders' equity, equal to 13.5 percent of assets.
CNY Financial Corporation ("CNY Financial" or the "Holding Company"), a
Delaware corporation, was recently organized to facilitate the conversion of
Cortland. In the course of the conversion, the Holding Company will acquire all
of the capital stock that the Bank will issue upon its conversion from the
mutual to stock form of ownership. Going forward, CNY Financial will own 100
percent of the Bank's stock, and the Bank will be CNY Financial's sole
subsidiary. Approximately 50 percent of the net proceeds received from the sale
of common stock will be used to purchase all of the then to be issued and
outstanding capital stock of the Bank, with the balance of the proceeds being
retained by the Holding Company. At this time, no other activities are
contemplated for CNY Financial other than the ownership of the Bank, a loan to
the newly-formed employee stock ownership plan ("ESOP") and investment of the
cash retained at the holding company in investment securities. In the future CNY
Financial may acquire or organize other operating subsidiaries.
Establishment of Charitable Foundation
In order to enhance the Bank's existing historically strong service and
reinvestment activities in the local community, the conversion provides for the
establishment of Cortland Savings Foundation, a private charitable foundation
(the "Foundation") in connection with the stock offering. The Bank and the
Holding Company will create the Foundation and fund it with authorized but
unissued shares of common stock contributed by the Holding Company in an amount
equal to 2 percent of the shares sold in the conversion, which based on an
initial offering price of $10.00 per share will result in the issuance of
122,500 shares to the Foundation at the midpoint. The Foundation is intended to
complement the Bank's existing community reinvestment activities and will be
dedicated to the promotion of charitable and educational purposes within the
Cortland County area. Funding the
RP Financial, LC.
Page 1.2
Foundation with shares of common stock of the Holding Company will enable the
local community served to share in the growth and profitability of the Holding
Company over the long term through dividends and price appreciation. As such,
the Bank believes the Foundation will create a high level of community goodwill
toward the Holding Company and the Bank, increase the Bank's local visibility
and further enhance the Bank's reputation for community service, thereby
strengthening its community banking franchise.
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 (Cortland County, and to a lesser
extent, contiguous counties), 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 outside of the Syracuse and Binghamton metropolitan
statistical areas ("MSA"), Cortland faces notable competition from a number of
other community oriented banks, as well as from larger regional financial
institutions. In this operating environment the Bank has pursued a strategy of
maintaining its asset base, increasing the branch office network and improving
the capital ratio 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 Cortland County and contiguous counties in central New York State,
with such lending supplemented with commercial real estate loans, home equity
loans, non-mortgage consumer and commercial loans and construction loans. The
Bank has recorded moderate growth in the loan portfolio in recent years,
reflecting increases in residential mortgage loans and consumer loans, in
particular automobile loans. The Bank has attempted to develop a more
customer-oriented approach and continues to developing business relations with
real estate brokers and businesses. The recent moderate increase in loans
receivable has been funded internally through a reduction in cash and
investments. The Bank has not traditionally sold fixed rate 1-4 family loan
originations for interest rate risk management purposes, although such sales may
occur following completion of the conversion. The Bank expects the majority of
its loan activity in the future to be within Cortland County.
Cortland is currently operating under the terms of a Memorandum of
Understanding ("MOU") entered into with the FDIC in December 1995 as a result of
certain weaknesses implied by the FDIC in the administration of the loan
origination function. The MOU, which remains effective currently, requires
Cortland to upgrade certain compliance procedures regarding consumer loans,
increase employee training, upgrade future compliance and provide periodic
reports to the FDIC. The Bank believes that it has complied with the terms of
the MOU and
RP Financial, LC.
Page 1.3
expects the MOU to be terminated in connection with the next FDIC consumer
compliance examination of the Bank, but there is no assurance that the FDIC will
agree to the termination of the MOU.
Also, since late 1996, two interrelated problem matters have had a
substantial direct effect on the Bank's results of operations. Cortland has
worked aggressively to identify the scope of these problems, resolve them and
recognize the financial consequences of them in order to move forward with
overall operations of the Bank. During the fourth quarter of 1996, the Bank
discovered that the senior loan officer had been involved in various schemes to
defraud the Bank, including making false entries in the Bank's books, creation
of loans to borrowers who either did not exist or were unaware of the loans and
the diversion of bank funds for personal purposes. Upon discovery of these
matters, the officer was dismissed and was subsequently convicted of criminal
charges. Cortland's investigation into this situation resulted in a chargeoff of
approximately $0.6 million of loans during the fourth quarter of 1996 which were
deemed uncollectible and the identification of $0.3 million of expenses related
to this officer's actions which had been previously expensed. Cortland has made
a claim against its fidelity bond carrier in the amount of approximately $1.0
million, which such claim currently under discussion with the carrier and the
amount recoverable on the claim is currently in dispute. No asset is recorded on
the Bank's books reflecting the value of the claim, which may or may not
ultimately be collected. Cortland has also incurred expenses in connection with
the investigation and resolution of this matter, including professional fees in
excess of $120,000 through March 31, 1998.
In part as a result of the above described officer defalcation, in recent
years Cortland has operated with a level of non-performing assets generally in
excess of 1.0 percent of assets, with such loans consisting of residential
mortgage, non-residential mortgage and non-mortgage loans. In the fourth quarter
of 1997, Cortland decided to sell a substantial portion of the non-performing
loans to a single purchaser. During December 1997, the Bank identified $4.3
million of loans as candidates for such a sale. These loans were all either
non-performing or were performing but had been identified by management as
potential problem loans. Approximately half of the loans were commercial
mortgage loans and half were residential mortgage loans. When these loans were
designated for disposition, Cortland charged off $1.7 million against the
allowance for loan losses to reflect the fair value of the loans. During the
first quarter of 1998, while identifying a purchaser for the loan package and
negotiating the terms of the sale, the Bank designated $0.7 million of
additional loans to include in the package being sold. The Bank consummated the
sale during the first quarter of 1998, which substantially reduced the level of
non-performing assets at the Bank, and improved the overall credit quality
measures. Currently, the Bank's allowance for loan losses relative to loans is
comparatively higher by industry standards, as the Bank has historically
maintained a strong level of reserves, and has added to the allowance recently
(in light of the previously mentioned loan package sale). The ratio of
non-performing assets ("NPAs"), consisting of real
RP Financial, LC.
Page 1.4
estate owned and other repossessed assets, non-accruing loans and delinquent
accruing loans assets declined to 0.96 percent of assets as of March 31, 1998.
The Bank's lending strategies to limit exposure to interest rate risk have
involved originating adjustable rate residential mortgage loans ("ARMs")
whenever possible, adjustable rate commercial real estate loans and shorter-term
consumer, commercial business and construction loans. Cortland also has
attempted to: (1) maintain a relatively short-term to maturity investment
portfolio; (2) increase the balance of adjustable rate mortgage-backed
securities; and, (3) build a strong level of interest-free capital to support
operations. Liability strategies have involved attempts to maintain or expand
the level of core deposits such as passbook, NOW/MMDA and demand accounts and
lengthen the maturity of time deposits. Cortland's calculated one-year
cumulative gap position as of March 31, 1998 was a negative 10.5 percent
Cortland 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, in concert with the stable
asset base. Core profitability has been primarily affected by an increasing
level of operating expenses that have been incurred in connection with normal
inflationary increases in costs, while additional costs (loan loss provisions
and professional fees) have been incurred in connection with the above described
officer defalcation event. Cortland opened a new branch office in 1994,
requiring investment in fixed assets and personnel. Further improvement in core
profitability has also been limited by the competitive pricing of deposits in
the local market area. Future core profitability is projected to improve
moderately with the reinvestment benefit of the new capital raised and income
benefits of expanded products and services without a commensurate increase in
operating expenses.
Cortland's Board of Trustees has determined that a conversion to stock
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 CNY Financial. Approximately 50 percent of the conversion proceeds
will be retained by CNY Financial, 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
RP Financial, LC.
Page 1.5
loan to the Bank's ESOP to fund stock purchases in the conversion.
The Holding Company funds may be utilized for various corporate
purposes, including funding expansion through diversification or
acquisition, stock repurchase programs, funding stock purchases for
the PRRP and/or payment of regular or special dividends, although
there are no specific plans at present.
o Cortland. 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, Cortland 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 increases in equity.
Balance Sheet Trends
Table 1.1 shows key balance sheet items at the close of the last five
fiscal years and as of March 31, 1998. Cortland's audited financial statements
are incorporated by reference as Exhibit I-2, while historical key operating
ratios are presented in Exhibit I-3. From December 31, 1993 through March 31,
1998, Cortland exhibited annual asset shrinkage of 0.1 percent, with similar
minimal changes in the major balance sheet categories. The Bank's asset base has
fluctuated within a relatively narrow range over this time period, with loans
receivable showing material growth only during fiscal 1994. The Bank has
historically maintained an investment in mortgage-backed securities ("MBS"),
along with a balance of cash and investments. Cortland's deposit base also
declined over the time period shown in Table 1.1, at a 0.9 percent annual rate,
with increases in equity replacing a portion of the deposit runoff. Cortland did
not utilize any borrowed funds for operations over the most recent five year
period.
The balance of loans receivable increased from fiscal 1993 to 1996, and
declined slightly through March 31, 1998, although loans receivable as a percent
of assets has been maintained at approximately 66 percent since fiscal 1994.
Loans receivable have decreased since 1996 as the Bank has focused efforts on
improving asset quality following the resignation of the former senior loan
officer (including the recent non-performing loan sale of approximately $4.3
million). At March 31, 1998, loans receivable totaled $154.2 million, or 66.4
percent of total assets. The composition of the loan portfolio reflects the
relatively diversified lending activity, as 1-4 family permanent loans
constituted $97.2 million, or 62.0 percent of the net loan portfolio at March
31, 1998. The second largest segment of the loan portfolio is commercial real
estate loans, which totaled $30.6 million, or 19.5 percent of the loan
portfolio, as Cortland has remained active in lending on certain commercial real
estate property in the local market, including multi-family properties. These
loans are attractive for their higher yields
RP Financial, LC.
Table 1.1
Cortland Savings Bank
Historical Balance Sheets
(Amount and Percent of Assets)
As of December 31,
----------------------------------------------------------------------------------------
1993 1994 1995 1996
---------------------- ---------------------- ---------------------- -------------------
Amount Pct Amount Pct Amount Pct Amount Pct
------ --- ------ --- ------ --- ------ ---
($000) (%) ($000) (%) ($000) (%) ($000) (%)
Total Amount of:
Assets $233,750 100.00% $230,339 100.00% $235,681 100.00% $238,100 100.00%
Cash and Investments 63,144 27.01% 48,963 21.26% 49,673 21.08% 48,494 20.37%
Loans Receivable (net) 142,600 61.01% 152,476 66.20% 158,507 67.25% 158,611 66.62%
Mortgage-Backed Securities (net) 20,337 8.70% 20,184 8.76% 17,468 7.41% 22,621 9.50%
Deposits 205,855 88.07% 200,310 86.96% 203,110 86.18% 204,640 85.95%
Stockholders' Equity 24,780 10.60% 26,876 11.67% 29,030 12.32% 30,345 12.74%
AFS Adjustment 143 0.06% 68 0.03% 298 0.13% 248 0.10%
Loans/Deposits 69.27% 76.12% 78.04% 77.51%
12/31/93-
As of December 31, 3/31/98
----------------------- As of March 31, Annual
1997 1998 Growth Rate
----------------------- ---------------------- -----------
Amount Pct Amount Pct Pct
------ --- ------ --- ---
($000) (%) ($000) (%) (%)
Total Amount of:
Assets $233,729 100.00% $232,388 100.00% -0.14%
Cash and Investments 45,570 19.50% 49,254 21.19% -5.68%
Loans Receivable (net) 155,422 66.50% 154,200 66.35% 1.86%
Mortgage-Backed Securities (net) 20,490 8.77% 19,816 8.53% -0.61%
Deposits 199,770 85.47% 198,234 85.30% -0.88%
Stockholders' Equity 30,740 13.15% 31,394 13.51% 5.72%
AFS Adjustment 571 0.24% 732 0.31% N/M
Loans/Deposits 77.80% 77.79%
Source: Prospecus, audited financial reports and RP Financial calculations.
RP Financial, LC.
Page 1.7
and generally higher average balances. Cortland also originates home equity
loans as an additional product for consumers, which totaled $6.1 million as of
March 31, 1998. At the same date, construction loans totaled $0.3 million, or
0.2 percent of the loan portfolio. Consumer and commercial business loans
constitute the remainder of the loan portfolio, totaling $22.5 million, or 14.4
percent of loans receivable, including $9.1 million of automobile loans.
Essentially all of the Bank's loan portfolio is secured by local property.
The portfolio of cash and investment securities totaled $49.3 million, or
21.2 percent of assets, at March 31, 1998 (see Exhibit I-4). The cash and
investments portfolio consisted of cash and equivalents, including
interest-earning deposits in other financial institutions ($4.6 million),
federal funds sold ($5.2 million), U.S. Government and agency securities ($18.6
million), FHLB stock ($1.3 million), corporate debt obligations ($16.9 million),
equity securities ($2.4 million) and other investments ($0.3 million). In
concert with the rest of the asset base, the cash and investments portfolio has
remained relatively stable over the most recent five year period, both in dollar
amount and as a percent of assets. Management utilizes the portfolio of cash and
investments for liquidity purposes and as part of the asset-liability management
strategy, as the investments portfolio generally consists of short- to
intermediate-term instruments with terms-to-maturity of generally less than
three years. The Bank has historically utilized the services of an outside
investment advisory firm, Fleet Investment, for assistance in the investment
process. The Bank seeks to maintain a target ratio of approximately 80 percent
of the portfolio as available-for-sale ("AFS"), and as of March 31, 1998, 78.5
percent of the investment securities portfolio was classified as AFS with an
unrealized pretax gain of $1.133 million tax adjusted and added to stated equity
on the Bank's audited financial statements. Cortland invests in certain
corporate debt securities in order to provide additional yields without
substantially higher credit risk, as such securities are limited to those rated
in the three highest grades by a national rating firm. The Bank also invests in
a limited amount of corporate equity securities to diversify the Bank's
investments and provide opportunities for capital appreciation and dividend
income. All equity securities are classified as AFS, however Cortland does not
regularly trade these securities. The Bank seeks to invest approximately $50,000
per month in additional equity securities. Going forward, 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.
MBS totaled $19.8 million at March 31, 1998, the third largest component
of interest-earning assets. The balance of MBS has also remained relatively
stable since fiscal 1993, as the Bank has opted to invest in MBS to supplement
yields on the loan portfolio while minimizing credit risk. The MBS portfolio
consists of FNMA, FHLMC and GNMA pass-through certificates. Approximately 60
percent of the MBS portfolio was classified as AFS at March 31, 1998, with an
unrealized pre-tax gain of $88,000. Going forward, the Bank intends to reinvest
a portion of available funds MBS, and increase the balance of adjustable rate
MBS for interest rate risk management purposes.
RP Financial, LC.
Page 1.8
As noted previously, deposits have traditionally met most of the Bank's
funding needs, and all of the Bank's deposits are generated through its three
office locations in Cortland County. The deposit base has remained relatively
stable since fiscal 1993, as overall financial institution deposits in Cortland
County have remained stable. Currently, savings rates offered by Cortland 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 46 percent of deposits, providing a base
of stable lower costing deposits for operations. The Bank has not utilized
borrowed funds since fiscal 1993, with deposits and equity providing sufficient
funds for operations.
Positive earnings from fiscal 1993 through March 31, 1998 and a positive
adjustment for FAS 122 resulted in an increase in the Bank's capital to $31.4
million, or 13.5 percent of assets, as of March 31, 1998. The Bank's capital
ratio increased steadily over the time period shown in Table 1.1, as equity
increased due to profitable operations and the asset base remained relatively
stable. Cortland 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 Cortland's competitive posture within
its market area.
Income and Expense Trends
Table 1.2 displays the Bank's earnings over the past five fiscal years and
for the most recent twelve month period, and reveals that earnings for this time
period has fluctuated between 0.03 and 0.98 percent of average assets, and
totaled 0.07 percent for the twelve months ended March 31, 1998 and 0.03 percent
for fiscal 1997. The more recent lower earnings have been attributable in part
to the resolution of the loan quality problems resulting from the officer
defalcation that was uncovered in late 1996. During fiscal 1997, the Bank
incurred elevated levels of loan loss provisions in order to recognize the fair
value of certain loans and higher levels of losses on the sale of real estate
owned ("REO"). Operating expenses were also higher in fiscal 1997 and the most
recent period as additional professional fees and other expenses were incurred
in connection with the loan portfolio quality and officer defalcation issues.
Net interest income comprises the majority of the Bank's net income, and
totaled $9.3 million for the twelve months ended March 31, 1998, or 3.98 percent
of average assets. Cortland has been successful in maintaining a level of net
interest income in excess of 3.75 percent of average assets over the past five
fiscal years, resulting from a strong yield/cost spread. Exhibit I-5 highlights
the changes in the Bank's asset yields and cost of funds over the past three
fiscal years, which have influenced the level of net interest income. Spreads
have
RP Financial, LC.
Table 1.2
Cortland Savings Bank
Historical Income Statements
For the Year Ended December 31,
---------------------------------------------------------------------
1993 1994 1995
---------------------- ---------------------- ----------------------
Amount Pct(1) Amount Pct(1) Amount Pct(1)
------ ------ ------ ------ ------ ------
($000) (%) ($000) (%) ($000) (%)
Interest Income $17,451 8.53% $16,855 7.14% $17,811 7.59%
Interest Expense (8,580) -4.20% (7,915) -3.35% (8,613) -3.67%
------- ------ ------- ------ ------- ------
Net Interest Income $ 8,871 4.34% $ 8,940 3.79% $ 9,198 3.92%
Provision for Loan Losses (550) -0.27% (300) -0.13% (600) -0.26%
------- ------ ------- ------ ------- ------
Net Interest Income after Provisions $ 8,321 4.07% $ 8,640 3.66% $ 8,598 3.66%
Other Operating Income $ 573 0.28% $ 558 0.24% $ 755 0.32%
Operating Expense (5,644) -2.76% (5,463) -2.32% (5,738) -2.45%
------- ------ ------- ------ ------- ------
Net Operating Income $ 3,250 1.59% $ 3,735 1.58% $ 3,615 1.54%
Gain(Loss) on Sale of Securities $ 0 0.00% $ (80) -0.03% $ 16 0.01%
Gain(Loss) on REO Operations 0 0.00% (123) -0.05% (207) -0.09%
Nationar Recovery(Provision) 0 0.00% 0 0.00% (100) -0.04%
------- ------ ------- ------ ------- ------
Net Non-Operating Income/Expense $ 0 0.00% $ (203) -0.09% $ (291) -0.12%
Net Income Before Tax $ 3,250 1.59% $ 3,532 1.50% $ 3,324 1.42%
Income Taxes (1,144) -0.56% (1,361) -0.58% (1,400) -0.60%
------- ------ ------- ------ ------- ------
Net Inc(Loss) Before Extraordinary Items $ 2,106 1.03% $ 2,171 0.92% $ 1,924 0.82%
Cumulative Effect of Change in
Accounting For Income Taxes $ (103) -0.05% $ 0 0.00% $0 0.00%
------- ------ ------- ------ ------- ------
Net Income (Loss) $ 2,003 0.98% $ 2,171 0.92% $ 1,924 0.82%
Adjusted Earnings
Net Operating Income $ 3,250 1.59% $ 3,735 1.58% $ 3,615 1.54%
Tax Effect (2) (1,144) -0.56% (1,439) -0.61% (1,523) -0.65%
------- ------ ------- ------ ------- ------
Adjusted Earnings $ 2,106 1.03% $ 2,296 0.97% $ 2,092 0.89%
Memo:
Efficiency Ratio 59.76% 57.52% 57.65%
Effective Tax Rate 35.20% 38.53% 42.12%
For the Year Ended December 31,
-------------------------------------------- 12 Months Ended
1996 1997 March 31, 1998
--------------------- ---------------------- ----------------------
Amount Pct(1) Amount Pct(1) Amount Pct(1)
------ ------ ------ ------ ------ ------
($000) (%) ($000) (%) ($000) (%)
Interest Income $17,787 7.56% $17,667 7.36% $17,561 7.54%
Interest Expense (8,758) -3.72% (8,328) -3.47% (8,274) -3.55%
------- ----- ------- ----- ------- -----
Net Interest Income $ 9,029 3.84% $ 9,339 3.89% $ 9,287 3.98%
Provision for Loan Losses (1,380) -0.59% (3,300) -1.38% (3,150) -1.35%
------- ----- ------- ----- ------- -----
Net Interest Income after Provisions $ 7,649 3.25% $ 6,039 2.52% $ 6,137 2.63%
Other Operating Income $ 755 0.32% $ 798 0.33% $ 825 0.35%
Operating Expense (5,941) -2.52% (6,372) -2.66% (6,321) -2.71%
------- ----- ------- ----- ------- -----
Net Operating Income $ 2,463 1.05% $ 465 0.19% $ 641 0.28%
Gain(Loss) on Sale of Securities $ 15 0.01% $ 46 0.02% $ 45 0.02%
Gain(Loss) on REO Operations (260) -0.11% (500) -0.21% (571) -0.25%
Nationar Recovery(Provision) 0 0.00% 45 0.02% 45 0.02%
------- ----- ------- ----- ------- -----
Net Non-Operating Income/Expense $ (245) -0.10% $ (409) -0.17% $ (481) -0.21%
Net Income Before Tax $ 2,218 0.94% $ 56 0.02% $ 160 0.07%
Income Taxes (853) -0.36% 16 0.01% (6) -0.00%
------- ----- ------- ----- ------- -----
Net Inc(Loss) Before Extraordinary Items $ 1,365 0.58% $ 72 0.03% $ 154 0.07%
Cumulative Effect of Change in
Accounting For Income Taxes 0 0.00% 0 0.00% 0 0.00%
------- ----- ------- ----- ------- -----
Net Income (Loss) $ 1,365 0.58% $ 72 0.03% $ 154 0.07%
Adjusted Earnings
Net Operating Income $ 2,463 1.05% $ 465 0.19% $ 641 0.28%
Tax Effect (2) (947) -0.40% 133 0.06% (24) -0.01%
------- ----- ------- ----- ------- -----
Adjusted Earnings $ 1,516 0.64% $ 598 0.25% $ 617 0.26%
Memo:
Efficiency Ratio 60.72% 62.86% 62.51%
Effective Tax Rate 38.46% -28.57% 3.75%
(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
historically been in excess of 3.45 percent, and declined by 12 basis points
between fiscal 1995 and 1997, as the Bank's asset yields fell by 20 basis
points, while the cost of funds declined by only 8 basis points. For the most
recent three month period, the yield cost spread increased to 3.70 percent.
These trends indicate that the Bank has been successful in maintaining and/or
improving the yield/cost spread and maintaining the net interest margin.
Cortland has historically derived 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 $825,000, or 0.35 percent of average
assets, and the level of such income has increased since fiscal 1994. 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 miscellaneous banking service charges and fees. Going
forward, the Bank anticipates that non-interest income will remain primarily
related to the deposit base, as other significant income sources are not
expected to be developed in the short term.
Cortland's operating expenses have increased in the time period shown in
Table 1.2, in part due to the growth in the general cost of operations,
including the new branch office in 1994 and inflationary increases in costs. In
addition, Cortland has incurred costs in connection with resolving the officer
defalcation and problem asset disposition issues in the most recent periods. The
Bank's operating expenses are expected to initially increase following the
conversion as a result of the following items. The ESOP and PRRP 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.
Provisions for loan losses have also had a material impact on earnings in
recent years, totaling $3,150,000, or 1.35 percent of assets, for the most
recent twelve month period. Cortland added to the allowance for loan losses in
recognition of the level of problem loans resulted from the officer defalcation,
and in recognition of the fair value of the loans which were ultimately sold in
early 1998. The Bank is budgeting provisions of $75,000 per quarter in the
future in order to maintain or slightly increase the allowance for loan losses
("ALL") ratio as a percent of loans receivable. As of March 31, 1998 the ALL
balance was equal to $2,230,000, or 1.45 percent of net loans receivable and
152.95 percent of non-performing loans, as compared to $1,952,000, or 1.23
percent of net loans and 53.73 percent of non-performing loans at fiscal year
end 1996 (see Exhibit I-6).
Historically, non-operating gains and losses have been limited to gains or
losses on the sale of investment securities and losses on the sale of REO
properties (see Table 1.2). The losses on the sales of REO increased during
fiscal 1997, primarily due to additional problem assets resulting from the
officer defalcation issue. In addition, during fiscal 1995 the Bank booked a
provision for loss of $100,000 on an investment in Nationar, a
RP Financial, LC.
Page 1.11
bank that experienced financial difficulties. During fiscal 1997, Cortland
received a distribution of $45,000 from the liquidation of Nationar.
Interest Rate Risk Management
Cortland 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)
increasing the balance of short-term to maturity commercial business loans and
consumer loans; (2) maintaining a balance of holding short-term investment
securities; (3) building a balance of interest-free capital; (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.
Cortland monitors its exposure to interest rate risk using a calculation
of the cumulative gap position for the Bank. As shown in Exhibit I-8, according
to the most recent calculation, the Bank's cumulative gap position in the
one-year time period was a negative 10.5 percent, indicating a level of interest
rate risk. Although this measure is within the Board-established limits of the
Bank, Cortland is seeking to reduce 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). Cortland has also concentrated on loan portfolio diversification by
maintaining 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. Illustrating the stability
of the portfolio composition, gross loans increased by 8.3 percent between
December 31, 1993 and March 31, 1998, from $144.6 million to $156.6 million,
with the proportion of residential real estate, commercial real estate,
construction, home equity and non-mortgage loans remaining relatively constant.
As of March 31, 1998, residential mortgage loans secured by 1-4 family
properties totaled $97.2 million, or 62.0 percent of total loans receivable,
consisting of both ARMs and fixed-rate residential mortgages. In recent years,
with relatively low mortgage interest rates, customer preference has favored
fixed-rate mortgage loans, which have increased from 29.9 percent to 39.9
percent of the overall loan portfolio between December 31, 1993 and March 31,
1998, while residential ARMs have declined from 31.0 percent to 22.2 percent
over the same time
RP Financial, LC.
Page 1.12
period. In the past, the Bank's residential mortgage loans have not been
originated using standards, procedures and documentation customary on the
secondary market, and thus these loans are generally not saleable to regular
secondary market purchasers. Cortland anticipates that by the end of 1998, most
of the new residential mortgage loan originations will meet secondary market
standards. Residential loans made by the Bank originated with loan-to-value
("LTV") ratios in excess of 80 percent currently require private mortgage
insurance ("PMI") coverage, although the Bank has approximately $7.5 million of
residential mortgage loans with LTV ratios between 80 percent and 90 percent
without PMI coverage for CRA purposes. Fixed-rate mortgages are offered with
maturities of up to 30 years, with all loans currently held in portfolio. The
Bank anticipates beginning to sell longer-term fixed rate residential loans in
the secondary market by the end of 1998.
Approximately 36 percent of the Bank's 1-4 family residential mortgages
consisted of ARMs at March 31, 1998, which are retained for portfolio as part of
asset/liability management strategy. Cortland offers ARMs with one- or
three-year adjustment periods that are indexed to the weekly average rate on the
corresponding U.S. Treasury securities, adjusted to a constant maturity, plus a
margin of three percent. The majority of ARMs are originated with annual
adjustment caps of 2.0 percent for one year ARMs and 3.0 percent for three year
ARMs. There is typically a lifetime adjustment cap of 6.0 percentage points.
Cortland also originates home equity lines of credit loans secured by 1-4
family residential property, usually as a second lien. These loans are generally
adjustable rate in nature, interest-only with ten year terms, followed by a
repayment period of generally 15 years during which the loan is repaid in
principal and interest installments. Cortland also offers home equity loans that
are fully advanced at closing and repayable in monthly principal and interest
payments over periods of up to 10 years. Maximum LTVs on these loans is
generally 80 percent.
Cortland originates commercial real estate loans in order to diversify the
loan portfolio and increase overall asset yields. As of March 31, 1998,
commercial real estate loans totaled $30.6 million, or 19.5 percent of loans
receivable. The Bank's commercial real estate portfolio consists primarily of
loans secured by the buildings in which various small businesses conduct their
operations, such as small office buildings, warehouses and office condos.
Commercial real estate loans originated by Cortland are predominantly fixed rate
loans that generally have terms of up to 20 years, although most of the Bank's
recent fixed rate commercial mortgage loans have five year terms that allow the
Bank to adjust the interest rate after each term. Adjustable rate commercial
real estate loans are indexed to the prime rate of interest or the U.S. Treasury
rate of a similar term as the adjustment 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.
RP Financial, LC.
Page 1.13
Construction loans totaled $0.3 million, or 0.2 percent of loans
receivable, at March 31, 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 three months. Construction/permanent
loans have maximum LTV ratios equal to the requirements of the permanent loans.
Cortland also offers consumer loans, which totaled $16.0 million, or 10.2
percent of gross loans receivable, at March 31, 1998. The Bank offers a variety
of types of consumer loans, including loans secured by automobiles, student
loans, deposit accounts, credit cards and secured and unsecured personal loans.
Cortland has recently emphasized the origination of automobile loans in order to
improve overall asset yields, increase the interest sensitivity of the assets
and expand the customer base. Auto loans are originated through both direct
contact with borrowers and through auto dealers as indirect loans. Cortland
performs its own underwriting of these indirect loans. Auto loans are made on
both new and used vehicles with maturities of no more than five years with LTVs
of less than 85 percent. Other consumer loans are generally offered as short
term loans of up to five years at fixed interest rates.
Commercial business loans also represent an area of loan portfolio
diversification, as Cortland strives to provide all financing needs for a
business customer (i.e. real estate loans and working capital or operating
loans). The Bank's commercial business loans have remained in the range of $6.5
to $9.0 million over the past five fiscal years and totaled $6.5 million as of
March 31, 1998. These loans are primarily made to local small businesses in
Cortland County, and are attractive due to the higher yields and shorter
durations. Commercial business loans usually carry a floating rate and are
secured by assets such as inventory, equipment or other assets and guaranteed by
the principals.
As shown in Exhibit I-11, Cortland's overall loan origination volume has
been relatively stable at $31.7 to $33.6 million over the most recent three
fiscal years. The table highlights the Bank's emphasis on residential real
estate and consumer lending, with residential originations increasing from $10.8
million, or 32.1 percent, of loan originations in fiscal 1995 to $14.7 million,
or 44.8 percent of loan originations for fiscal 1997. Cortland has not
historically purchased loans, and has not sold loans in the secondary market.
Asset Quality
Exhibit I-12 displays Cortland's NPAs from fiscal 1993 to March 31, 1998,
and shows that the level of NPLs has declined to 0.94 percent of total loans at
March 31, 1998, following an extended period in excess of 1.2 percent of loans.
This decline is primarily due to the previously described sale of problem loans,
which substantially reduced the level of non-accrual loans. The Bank recorded
REO of $760,000 at March 31, 1998. As of the same date, the ratio of NPAs to
assets equaled 0.96 percent of assets, a decline from 2.27 percent of assets at
fiscal year end 1997. At March 31, 1998, NPAs totaled $2,228,000 and consisted
of residential real estate, commercial real estate and non-mortgage loans on
non-accrual status, other loans greater than 90 days delinquent and still
accruing and REO. As of the same date, the Bank maintained valuation allowances
of $2,230,000, equal to 1.45 percent of loans receivable and 100.09 percent of
NPAs. Cortland had classified assets of $2.2 million at March 31, 1998, all of
which were classified as substandard or doubtful (see Exhibit I-13).
Funding Composition and Strategy
Exhibit I-14 provides data pertaining to Cortland's deposit composition at
fiscal year ends 1995 through March 31, 1998. Cortland's deposits consist of CD
accounts, which totaled $107.9 million, or 54 percent of total deposits, and a
base of core deposits (passbook accounts, NOW accounts, non-interest checking
accounts, and MMDAs) which totaled $90.4 million, or 46 percent of total
deposits. Passbook accounts were the largest component of core deposits and
totaled $63.7 million, or 32 percent of total deposits, at March 31, 1998,
followed by NOW accounts totaling $9.3 million, and demand accounts totaling
$9.1 million. From December 31, 1995 to March 31, 1998, the proportion of non-CD
deposit funds as a percent of total deposits increased slightly from 44.3
percent to 45.6 percent, indicating the Bank has been successful in maintaining
this low-cost deposit base.
CDs accounted for approximately 54 percent of Cortland's deposit base at
March 31, 1998. Approximately 59 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 $13.7 million, or 6.9 percent of deposits, at
March 31, 1998. The level of jumbo CDs in the Bank's CD portfolio is significant
in that jumbo CDs tend to be more rate sensitive than smaller denomination CDs,
increasing the Bank's interest rate risk to a degree.
RP Financial, LC.
Page 1.15
Subsidiary Operations
The Bank currently has one subsidiary operation, which was incorporated in
New York in 1986 but which has been inactive for many years and does not engage
in any business at this time.
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
Cortland conducts operations in the central region of the State of New
York, operating out of a headquarters office in Cortland, Cortland County, New
York, a branch office in the adjoining community of Cortlandville to the south,
and a branch office in Homer, a small city adjacent to the north of the City of
Cortland. Cortland has also recently opened a representative office in Ithaca,
Tompkins County, New York, an adjoining county to southwest, to originate
mortgage loans. All of the Bank's full-service facilities are located in
Cortland County. Exhibit I-1 details the locations of the Bank's offices, while
Exhibit II-1 details the general characteristics of the Bank's offices. Cortland
County is a primarily rural county located to the south of the Syracuse
metropolitan statistical area ("MSA") and north of the Binghamton, New York MSA.
Cortland County has an estimated 1997 population of 48,000, while the Syracuse
MSA has an estimated population of 750,000 and the Binghamton MSA has an
estimated population of 250,000. While the more rural nature of Cortland County
area has historically limited overall population levels, U.S. Interstate Route
I-81 has provided access to the larger population and employment centers of
Syracuse and Binghamton. The City of Cortland and Cortland County, in particular
the local areas surrounding the Bank's offices, represent the primary market
area for deposit generation as most of the Bank's depositors live in the areas
surrounding the office locations. Cortland's sources for loans is primarily
Cortland County, and to a lesser extent, the surrounding counties.
The Bank's market area has in general reported stable levels of
population, households and income in recent years, as the rural nature of the
county has acted to restrict employment opportunities and limit increases in
income. The Cortland County employment base is generally diversified into a
broad variety of employment sectors, including education, tourism, health care,
services and manufacturing.
Competition from other financial institutions operating in the Bank's
market area includes a number of both large and small commercial banks, and
against this competition the Bank maintains a market share of approximately
forty percent of overall financial institution deposits in Cortland County. The
other financial institutions in Cortland County consist of both locally-owned
community-oriented institutions and subsidiaries of larger regional and
superregional institutions. The Bank has experienced little change in deposits
in recent years primarily due to the lack of growth in market area deposits and
continued competition for deposits.
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.
RP Financial, LC.
Page 2.2
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. Second
quarter economic data for 1997 generally reflected a less robust pace of growth
than maintained during the first quarter. Most notably, a lower than anticipated
National Association of Purchasing Managers index in April 1997 indicated a
slowdown of expansion in the manufacturing sector. New home sales also dropped
by 7.7 percent in April 1997, the sharpest decline in six months. Automobile
sales for April and May declined from year earlier levels, and discounting
became more common by automakers. A rise in the June unemployment rate and GDP
growth slowing to an annual rate of 2.2 percent in the second quarter, which was
well below the revised 4.9 percent rate recorded in the first quarter, further
signaled that the economy was slowing to a more sustainable pace.
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
RP Financial, LC.
Page 2.3
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.
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.
RP Financial, LC.
Page 2.4
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, 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.
Consistent with the mixed economic activity, interest rate trends have
been varied as well over the past year. News of the budget agreement and
favorable inflation data provided for a rally in bond prices in early-May 1997.
Interest rates stabilized in mid-May, as the Federal Reserve opted not to raise
interest rates at its May meeting. The high level of consumer confidence
indicated by the May reading caused the 30-year bond yield to edge above 7.0
percent again in late-May. However, the increase was short-lived, as signs of
slowing economic growth provided for a lower interest rate environment during
June.
The 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, 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
RP Financial, LC.
Page 2.5
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
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
RP Financial, LC.
Page 2.6
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. As of June 5, 1998, one- and thirty-year U.S. Government bonds
were yielding 5.43 percent and 5.79 percent, respectively, versus comparative
year ago rates of 5.74 percent and 6.88 percent. Exhibit II-2 provides
historical interest rate trends from 1991 through June 5, 1998.
Market Area Demographics
Demographic growth trends in Cortland County 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,
while additional data concerning sources of personal income and employment
sectors is presented in Exhibit II-4. Syracuse and Binghamton MSA, New York 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. As shown in Exhibit II-3, and illustrating the rural nature of
Cortland County, there was an estimated population of 48,000 in Cortland County
as of 1997. Since 1990, Cortland County has experienced a slight decline in both
population and households, while the State of New York has recorded only minimal
growth. This history of stable population and household numbers is prevalent
throughout central New York State, as both the Syracuse and Binghamton MSAs
recorded stable or declining population and household figures since 1990. These
trends are projected to continue through the year 2002, and indicate that the
Bank operates in a market area with essentially zero growth in these key
demographic areas.
Median household income levels in the primary market area of Cortland
County are generally in line with the central New York region averages
(including the Syracuse and Binghamton MSAs), but lower than the statewide
averages (which have an upward bias due to the higher incomes of the New York
City area). Estimated per capita annual income for 1997 in Cortland County was
less than all comparative area figures, including 14 percent less than the
Syracuse MSA and 33 percent less than the state average. However, these lower
income levels are offset by the relatively lower cost of living found in the
more rural Cortland County. Income
RP Financial, LC.
Page 2.7
distribution levels are similar to per capita income figures, revealing that
Cortland County has a higher proportion of lower income households (below
$50,000 annually), reflecting the lower income nature of the area. Based on the
projections of stable population and households, along with comparable or lower
income levels, growth opportunities in the primary market area counties can be
expected to remain limited, with growth most likely achievable through expansion
of the Bank's market overall area.
Economy
The Bank's deposit gathering activities and a substantial portion of the
lending operations are conducted in Cortland County. Employment in this county
is generally diversified, containing employment in services, wholesale and
retail trade, manufacturing and state and local government. As shown in Table
2.1 below, Cortland County has a higher proportion of employment in wholesale
and retail trade and manufacturing than the state as a whole, 42 percent versus
29 percent, respectively, while the state of New York has a higher employment
rate in services. As indicated previously, the I-81 corridor provides access to
the Syracuse and Binghamton MSAs and the rest of the eastern coast of the United
States. Table 2.2 presents the major employers within Cortland County. As shown
by this list of employers, the Bank's market area county contains a relatively
well diversified employment base.
Table 2.1
Cortland Savings Bank
Cortland County Employment Characteristics
Employment Area New York Cortland County
- --------------- -------- ---------------
Services 35.2% 28.2%
Wholesale/Retail Trade 19.2% 22.3%
Manufacturing 10.1% 19.2%
Government 14.6% 14.4%
Construction 3.8% 4.2%
Other 17.1% 11.7%
----- -----
Total 100.0% 100.0%
Source: REIS, Inc.
RP Financial, LC.
Page 2.8
Table 2.2
Cortland Savings Bank
Major Cortland County Employers
Employer Industry Employees
- -------- -------- ---------
Cortland Memorial Hospital Health Care 501-1,000
Cortland Asphalt-Suit Kote Asphalt Products 501-1,000
Pall Trinity Corporation Filters, FiltrationSystems 501-1,000
SUNY - Cortland Education 501-1,000
Buckbee-Mears Cortland TV Screen Manufacturing 251-500
Marietta Corporation Packaging Supplies/Samples 251-500
Cooper Hand Tools Tools 100-250
Intertect Laboratories Testing Laboratories 100-250
Monarch Machine and Tool Machine Tools 100-250
Saulsbury Fire Equipment Fire Equipment 100-250
Source: Cortland County Chamber of Commerce.
Table 2.3 displays unemployment data in the local market area as of March
1997 and March 1998. While the unemployment rate has declined for the United
States and the state of New York over the past year, the unemployment rate for
Cortland County increased, and remains well above state and national averages as
of March 1998. The unemployment rate for New York is also above the national
average. This data indicates that the Bank's market area county is experiencing
a comparatively low level of job availability for the current residents eligible
for employment, and this elevated unemployment rate is significant in view of
the stable levels of population that have existed over the recent past.
Table 2.3
Cortland Savings Bank
Market Area Unemployment Trends
Region March 1997 March 1998
- ------ ---------- ----------
United States 5.5% 5.0%
New York 7.0% 6.5%
Cortland County 8.2% 8.5%
Source: U.S. Bureau of Labor Statistics.
RP Financial, LC.
Page 2.9
Deposit Trends and Competition
Competition among financial institutions in the Bank's market area is
significant, and, as larger institutions compete for market share to achieve
economies of scale, the market environment for the Bank's products and services
is expected to become increasingly competitive in the future. Smaller
institutions such as Cortland will be forced to either compete with larger
institutions on pricing, or to identify and operate in a "niche" that will allow
for operating margins to be maintained at profitable levels.
The Bank's market area for deposits, defined as Cortland County, is
characterized by the presence of both locally-based and locally-owned financial
institutions and larger, regional and superregional institutions. Major
competitors include local commercial banks such as the First National Bank of
Cortland, and larger regional and superregional banks such as Marine Midland
Bank (Buffalo, NY), Manufacturers and Traders Trust Company (Buffalo, NY),
Keybank National Association (Cleveland, OH) and Fleet Bank (Albany, NY).
Table 2.4 displays deposit market trends for the State of New York 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 while savings institutions lost deposits. This trend of moderate
increases in overall deposits, similar to the rest of the nation, reflects in
part 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. In contrast,
deposit trends in Cortland County exhibited a slight decline over the same two
year period. Cortland is the only savings institutions operating in Cortland
County, and reported an increase in deposits of less than one percent, while
commercial banks decreased deposits by approximately the same amount. Commercial
banks hold approximately 58 percent of financial institution deposits in
Cortland County. Cortland Savings maintains a market share of over 42 percent of
financial institution deposits in Cortland County, indicating that further gains
in deposits may be difficult.
Summary
The overall condition of the primary market area can be characterized as
stable with a relatively small population and household base. The local economy
is relatively diversified and is attractive to new businesses. In order to
support the Bank's desired level of business operations, lending activities have
been pursued in a larger geographical area including several of the surrounding
counties. 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
-----------------------------
Table 2.4
Cortland Savings Bank
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) (%)
State of New York $348,599,172 100.0% 4,796 $397,560,108 100.0% 4,520 6.8%
Commercial Banks 249,623,347 71.6% 3,645 314,746,311 79.2% 3,509 12.3%
Savings Institutions/Savings Banks 98,975,825 28.4% 1,151 82,813,797 20.8% 1,011 -8.5%
Cortland County $ 491,647 100.0% 15 $ 490,448 100.0% 15 -0.1%
Commercial Banks 286,361 58.2% 12 283,869 57.9% 12 -0.4%
Savings Institutions/Savings Banks 205,286 41.8% 3 206,579 42.1% 3 0.3%
Cortland Savings 205,286 41.8% 3 206,579 42.1% 3 0.3%
- --------------------------------------------------------------------------------------------------------------------------------
Source: FDIC; OTS.
RP Financial, LC.
Page 2.11
expected to remain substantial, which will result in Cortland 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 Cortland's operations versus a group
of comparable public companies (the "Peer Group") selected from the universe of
all publicly-traded savings institutions. The primary basis of the pro forma
market valuation of the Bank is provided by these public companies. Factors
affecting Cortland'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 Cortland and the
Peer Group, will then be used as a basis for the valuation of the Bank's
to-be-issued common stock.
Selection of Peer Group
We consider the appropriate Peer Group to be comprised of only those
publicly-traded savings 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 institutions are
inappropriate 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 all
publicly-traded subsidiary institutions of mutual holding companies, because
their pricing ratios are distorted by the minority issuance of their shares. We
have also excluded from the Peer Group those companies under acquisition and/or
companies whose market prices appear to be distorted by speculative factors or
unusual operating conditions. The universe of all publicly-traded institutions
is included as Exhibit III-1. Pricing characteristics of all savings
institutions are included as Exhibit IV-1 (institutions excluded from the
calculation of averages are denoted with a footnote (8)).
Under ideal circumstances, the Peer Group would be comprised of a minimum
of ten publicly-traded New York savings institutions with capital, earnings,
asset sizes, balance sheet composition, risk profiles, operating strategies and
market areas comparable to the Bank. Since 10 such institutions do not exist, it
was necessary to expand the search beyond state boundaries and with search
criteria for similarly sized, well capitalized institutions located in other
states. Thus, in the selection process we applied the two primary "screens" to
the universe of all public companies as follows:
o Screen #1. New York State institutions outside of New York City with
assets more than $100 million less than $1.0 billion. Seven
companies met the criteria for this screen and were included in the
Peer Group (see Exhibit III-2). The remaining New York institutions
were excluded due to the company's location in New York City and
asset size considerations.
RP Financial, LC.
Page 3.2
o Screen #2. Institutions operating in Ohio with equity/assets ratios
in excess of 20 percent and meaningful price/earnings multiples
(less than 30 times). Three companies met the criteria for this
screen and were included in the Peer Group (see Exhibit III-3).
Table 3.1 lists key characteristics of the Peer Group companies. In
general, the Peer Group is comprised of relatively seasoned publicly-traded
institutions operating in New York and Ohio with a moderately lower average
asset size. While the Peer Group is not exactly comparable to the Bank, we
believe that it provides a reasonable representation of publicly-traded savings
institutions with operations comparable to those of the Bank and thus forms a
sound basis for valuation. A summary description of the key characteristics of
each of the Peer Group companies selected is detailed below.
o Ambanc Holding Co., Inc. of Amsterdam, NY. Ambanc, the largest member of
the Peer Group with over $520 million in assets, is traded on the NASDAQ
and was selected due to its meeting the selection criteria described
above, including operating in close proximity to Cortland in central New
York. Ambanc operates with a relatively high percentage of assets in MBS
and utilizes borrowings to fund operations. Ambanc also reported net
income below the Peer Group averages, and also reported relatively low
levels of non-performing assets along with comparatively high reserve
coverage ratios.
o Catskill Financial Corporation of Catskill, NY. Catskill is a $296 million
institution operating 4 offices in southeastern New York. Catskill
converted to stock form in April 1996, and is a well-seasoned public
company. Catskill reported relatively high investment in cash and
investments and MBS and a loan portfolio dominated by 1-4 family loans.
Catskill reported a high equity/assets ratio and the second highest income
of the Peer Group, which was supported by low operating expenses.
o Skaneateles Bancorp of Skaneateles, NY. Skaneateles, a $258 million
savings institution, operates from nine office locations in central New
York state. Skaneateles, in addition to satisfying the selection criteria,
reported relatively high investment in loans receivable funded almost
completely with deposit funds. Loan portfolio diversification included
commercial real estate and consumer loans. Skaneateles reported a
relatively low equity/assets ratio and income which was supported by a
strong net interest margin, offset by relatively high operating expenses.
Reserve coverage ratios were lower than the Peer Group averages.
o The Elmira Savings Bank of Elmira, NY. Elmira Savings operates in Elmira,
New York in close proximity to the Cortland area in central New York from
six offices. Maintaining an asset base of $230 million, Elmira Savings is
also a seasoned institution that converted in 1985. Elmira Savings
reported a high proportion of assets invested into loans receivable funded
with a high concentration of deposits. Elmira reported loan
diversification into commercial business, commercial real estate and
non-mortgage lending, resulting in a comparatively high risk-weighted
assets-to-assets ratio. Elmira Savings also reported relatively comparable
reserve coverage ratios. Elmira Savings also reported the largest
portfolio of loans serviced for others of the Peer Group members.
o Peekskill Financial Corporation of Peekskill, NY. Peekskill, traded on the
NASDAQ, is a $196 million savings institution operating 3 offices in
southeastern New York. Similar to Ambanc and Catskill, Peekskill reported
relatively high investment in MBS, along with little loan diversification
beyond 1-4 family residential lending, which resulted in the lowest
risk-weighted assets-to-assets ratio of the Peer Group. Peekskill's
profitability was supported by a strong net interest margin and operating
expenses lower than the Peer Group average.
RP FINANCIAL, LC.
- ---------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.1
Peer Group of Publicly-Traded Thrifts
June 16, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ -------
($) ($Mil)
AHCI Ambanc Holding Co., Inc. of NY(3) OTC East-Central NY Thrift 520 12 12-31 12/95 18.63 79
CATB Catskill Fin. Corp. of NY(3) OTC Albany NY Thrift 296 4 09-30 04/96 17.38 78
SKAN Skaneateles Bancorp Inc of NY(3) OTC Northwest NY Thrift 258 9 12-31 06/86 17.50 25
ESBK Elmira Svgs Bank (The) of NY(3) OTC NY,PA Thrift 230 6 12-31 03/85 29.25 21
PEEK Peekskill Fin. Corp. of NY OTC Southeast NY Thrift 196 3 06-30 12/95 18.00 54
SFED SFS Bancorp of Schenectady NY OTC Eastern NY Thrift 175 4 12-31 06/95 22.00 27
WEHO Westwood Hmstd Fin Corp of OH OTC Cincinnati OH Thrift 134 D 2 12-31 09/96 12.75 36
GOSB GSB Financial Corp. of NY(3) OTC Southeast NY Thrift 119 2 09-30 07/97 17.13 39
DCBI Delphos Citizens Bancorp of OH OTC Northwest OH Thrift 113 1 09-30 11/96 20.50 39
PSFC Peoples Sidney Fin. Corp of OH OTC WestCentral OH Thrift 106 1 06-30 04/97 24.38 44
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: 06/16/98
RP Financial, LC.
Page 3.4
o SFS Bancorp of Schenectady, NY. SFS Bancorp is the sixth New York
institution included in the Peer Group, and operates 4 offices in
northcentral New York. SFS Bancorp reported a high investment in loans
receivable (in particular 1-4 family residential loans) and no use of
borrowed funds. SFS Bancorp profitability was affected by a relatively low
level of net interest income and reported lower than average reserve
coverage ratios.
o Westwood Homestead Financial Corporation of Cincinnati, OH. Westwood
Homestead is the first Ohio institution included in the Peer Group, and
operates two offices in Cincinnati, Ohio. Westwood Homestead reported a
strong capital level in excess of 22 percent, and investment primarily in
loans receivable and only minor levels of investment in MBS, with recent
profitability effected by non-operating losses. Westwood Homestead's loan
portfolio showed diversification into commercial real estate, and asset
quality figures were more favorable than the Peer Group averages in terms
of non-performing assets as a percent of assets. Reserves as a percent of
non-performing assets were also higher in comparison to Peer Group
averages.
o GSB Financial Corporation of Goshen, NY. GS Financial is a $119 million
asset company operating out of two offices in New York, and represents the
most recently converted institution in the Peer Group. GS Financial
maintained a majority of earning assets in loans receivable and cash and
investments, with little in terms of MBS. GS Financial reported income
that was below Peer Group averages, with the net interest margin and
operating expenses above Peer Group averages.
o Delphos Citizens Bancorp of Delphos, OH. Delphos has $113 million in
assets and operates out of one office in northeastern Ohio. Delphos
converted in 1996 and thus is well seasoned in the marketplace and
maintains a strong capital position. Delphos reported investment primarily
in MBS and loans receivable, with profitability positively affected by the
lowest level of operating expenses of all Peer Group members. Delphos'
loan portfolio revealed only moderate levels of diversification into non
1-4 family lending. Asset quality figures were more favorable than Peer
Group averages in terms of non-performing assets to total assets, however
reserve coverage ratios were also below Peer Group averages.
o Peoples Sidney Financial Corporation of Sidney, OH. Peoples Sidney
represents the second most recently converted company in the Peer Group,
having converted in April of 1997. Peoples Sidney has $106 million in
assets and operates out of one office in west-central Ohio. Peoples Sidney
operates with a high capital position (due to the recent conversion).
Income was supported by a strong net interest margin, although Peoples
Sidney reported relatively low levels of non-interest income from the
non-diversified operations. Asset quality figures were less favorable than
the Peer Group averages.
In aggregate, the Peer Group companies have an average capital ratio that is
higher than the industry average, and lower core profitability. The Peer Group's
much higher capital ratio combined with lower earnings results in a lower core
ROE of 5.28 percent versus 10.16 percent for the all BIF average. In terms of
pricing, the Peer Group on average trades at a lower price/book ("P/B") multiple
and a higher price/earnings ("P/E") multiple relative to the industry (see the
following table).
RP Financial, LC.
Page 3.5
As of June 5, 1998
------------------
Peer All BIF
Group Insured
----- -------
Equity-to-Assets 18.43% 11.56%
Return on Assets ("ROA")-Core 0.91% 1.01%
Return on Equity ("ROE")-Core 5.28% 10.16%
Market Capitalization ($Mil) $ 44.15 $628.84
Price-to-Tangible Book Ratio ("P/TB") 131.68% 191.24%
Price-to-Earnings Multiple ("P/E")-Core 22.48x 19.53x
Price-to-Assets Ratio ("P/A") 23.87% 20.50%
Source: Chapter IV tables.
The following sections present a comparison of the Bank's financial
condition, income and expense trends, loan composition, interest rate risk and
credit risk versus the Peer Group. The conclusions drawn from the comparative
analysis are then factored into the valuation analysis discussed in the final
chapter.
Financial Condition
Table 3.2 shows comparative balance sheet measures for the Bank and the
Peer Group, reflecting the expected similarities and some differences given the
selection procedures outlined above. Information for Cortland is as of March 31,
1998, and as of the latest available (December 31 or March 31) for the Peer
Group. The Bank's pre-conversion net worth of 13.5 percent was below the Peer
Group's average net worth ratio of 18.4 percent, although the Bank's capital
level can be expected to exceed the Peer Group average on a pro forma basis. The
increase in the Bank's capital on a pro forma basis can also be expected to
reduce its ROE. Neither the Bank or the Peer Group, on average, had a balance of
goodwill. The Bank and all of the Peer Group companies were in compliance with
all fully phased-in regulatory capital requirements and were considered to be
well-capitalized by FDICIA standards.
In terms of asset composition, the Bank's ratio of loans to assets was
only slightly lower than the Peer Group's ratio (66.4 percent of assets versus
67.6 percent for the Peer Group), while the Peer Group recorded a higher level
of MBS (15.0 percent versus 8.5 percent for the Bank). The Bank maintains a
higher balance of cash and investments as part of its operating strategy, and
the portfolio totaled 21.2 percent of total assets. In contrast, the Peer Group
maintained a ratio of cash and investments of 15.2 percent of assets. Following
the conversion, the Bank's level of cash and investments is expected to
initially increase, pending the Bank's deployment of the proceeds into loans.
Overall, the Bank's IEA totaled 96.1 percent of assets, versus 97.8 percent for
the Peer Group.
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
----------- ------ ------ -------- -------- ------- -------- -------- ------- ----------
Cortland SB of Cortland NY
- --------------------------
March 31, 1998 21.2 66.4 8.5 85.3 0.0 0.0 13.5 0.0 13.5 0.0
SAIF-Insured Thrifts 19.0 67.5 10.2 68.9 15.6 0.2 13.4 0.2 13.2 0.0
BIF-Insured Thrifts 21.6 62.3 12.5 71.3 15.5 0.0 11.1 0.4 10.7 0.0
Comparable Group Average 15.2 67.6 15.0 74.3 5.9 0.0 18.4 0.0 18.4 0.0
Mid-Atlantic Companies 18.4 59.8 19.1 76.1 6.3 0.0 16.0 0.0 15.9 0.0
Mid-West Companies 7.7 85.6 5.2 70.1 5.1 0.0 24.2 0.0 24.2 0.0
Comparable Group
- ----------------
Mid-Atlantic Companies
- ----------------------
AHCI Ambanc Holding Co., Inc. of NY 15.6 54.6 27.5 62.4 22.4 0.0 11.7 0.0 11.7 0.0
CATB Catskill Fin. Corp. of NY 25.0 42.5 30.8 68.9 6.1 0.0 23.4 0.0 23.4 0.0
ESBK Elmira Svgs Bank (The) of NY 14.9 77.0 4.4 91.6 1.4 0.0 6.2 0.0 6.2 0.0
GOSB GSB Financial Corp. of NY 27.2 60.3 9.3 69.0 1.7 0.0 28.1 0.0 28.1 0.0
PEEK Peekskill Fin. Corp. of NY 22.7 24.1 52.0 70.2 5.1 0.0 23.0 0.0 23.0 0.0
SFED SFS Bancorp of Schenectady NY 10.7 78.0 9.0 86.2 0.0 0.0 12.4 0.0 12.4 0.0
SKAN Skaneateles Bancorp Inc of NY 12.8 82.3 1.1 84.8 7.1 0.0 7.0 0.2 6.8 0.0
Mid-West Companies
- ------------------
DCBI Delphos Citizens Bancorp of OH 3.9 81.0 13.9 70.1 4.4 0.0 25.0 0.0 25.0 0.0
PSFC Peoples Sidney Fin. Corp of OH 9.9 88.3 0.0 74.5 0.0 0.0 25.2 0.0 25.2 0.0
WEHO Westwood Hmstd Fin Corp of OH(1) 9.2 87.6 1.6 65.7 11.0 0.0 22.5 0.0 22.5 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.
------ ----------- ------ -------- -------- -------- ------- -------- -------- --------
Cortland SB of Cortland NY
- --------------------------
March 31, 1998 -1.92 1.25 -2.23 -2.51 0.00 2.76 2.76 13.21 22.03 23.28
SAIF-Insured Thrifts 14.82 9.36 13.50 9.01 17.89 4.86 4.75 11.40 11.64 23.17
BIF-Insured Thrifts 16.09 14.21 15.36 8.30 16.58 9.48 8.43 10.05 9.87 19.12
Comparable Group Average 9.18 3.39 12.45 3.74 -15.70 -4.12 -3.45 15.83 14.93 35.04
Mid-Atlantic Companies 8.87 12.01 8.62 3.63 12.40 -0.16 0.74 15.09 13.91 36.75
Mid-West Companies 9.90 -16.72 21.39 3.99 -100.00 -15.99 -15.99 17.31 17.31 31.04
Comparable Group
- ----------------
Mid-Atlantic Companies
- ----------------------
AHCI Ambanc Holding Co., Inc. of NY 8.72 17.31 7.38 4.17 14.02 -0.11 -0.11 8.80 8.80 22.06
CATB Catskill Fin. Corp. of NY 8.03 13.22 6.63 3.38 NM -6.22 -6.22 20.88 20.88 60.42
ESBK Elmira Svgs Bank (The) of NY 3.19 -17.23 7.54 2.96 22.52 1.74 6.26 6.24 6.24 10.25
GOSB GSB Financial Corp. of NY 24.30 32.89 22.21 -0.65 NM NM NM 19.68 19.68 39.70
PEEK Peekskill Fin. Corp. of NY 7.26 21.13 3.32 3.63 NM -3.65 -3.65 22.60 22.60 89.70
SFED SFS Bancorp of Schenectady NY 3.90 -29.18 10.51 4.72 NM -1.15 -1.15 12.36 12.36 23.77
SKAN Skaneateles Bancorp Inc of NY 6.70 45.93 2.76 7.22 0.66 8.42 9.28 NM 6.78 11.35
Mid-West Companies
- ------------------
DCBI Delphos Citizens Bancorp of OH 5.19 -72.78 19.29 3.81 NM -7.38 -7.38 12.40 12.40 25.20
PSFC Peoples Sidney Fin. Corp of OH 12.58 81.76 8.07 -3.40 -100.00 NM NM 17.10 17.10 27.40
WEHO Westwood Hmstd Fin Corp of OH(1) 11.93 -59.15 36.80 11.57 NM -24.60 -24.60 22.42 22.42 40.51
(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 3.7
While the Bank relied solely on deposits as the source to fund operations,
the Peer Group relied on deposits and borrowings as funding sources, as
reflected in the current deposits to assets ratios of 85.3 percent and 74.3
percent, respectively, and borrowings to assets ratios of 0.0 percent and 5.9
percent, respectively. Total interest-bearing liabilities ("IBL") maintained by
the Bank and the Peer Group equaled 85.3 percent and 80.2 percent, respectively,
with the Peer Group's lower ratio attributable to its higher capital ratio. On a
pro forma basis, the Bank's IBL ratio is expected to decline as a result of the
Bank's enhanced capital base and potential deposit withdrawals to fund stock
purchases.
The growth rate section of Table 3.2 shows growth rates for key balance
sheet items. The growth rates (annualized) for the Bank are for the fifteen
months ended March 31, 1998 while growth rates for the Peer Group are for the
latest trailing twelve months available. The Bank reported a slight decrease in
assets since December 31, 1996, while the Peer Group reported asset growth equal
to 9.2 percent. Changes in the Bank's balance sheet occurred in the area of
loans receivable and MBS (a decrease of 2.2 percent), offset by an increase in
cash and investments of 1.3 percent. The Peer Group funded increases in loans
and MBS through increases in assets. The Bank's slight asset shrinkage was
evidenced by declines in deposits, while equity increased slightly. The Peer
Group funded asset growth through a combination of deposits, borrowings and
equity (the "NMs" in Table 3.2 reflect increases in excess of 100 percent).
Cortland's profitable operations resulted in growth in the capital account equal
to 2.8 percent, while various capital management strategies employed by Peer
Group members (such as stock repurchases and dividends), resulted in a decline
in the Peer Group's capital of 4.1 percent on average.
Income and Expense Components
For the twelve months ended March 31, 1998, the Bank's net income amounted
to 0.07 percent of average assets, below the 0.88 percent average return posted
by the Peer Group (see Table 3.3). Net interest income was the primary component
of the Bank's and the Peer Group's earnings, with Cortland's net interest margin
above the Peer Group average (3.99 and 3.65 percent of average assets,
respectively). Cortland reported a higher level of interest income and a lower
level of interest expense, with the greatest difference reported in interest
income. As shown in the "yields, costs, and spreads" section of Table 3.3, the
Bank has a higher yield on assets and lower cost of funds in comparison to the
Peer Group and the industry as a whole, resulting in a favorable yield/cost
spread of 3.58 percent versus 2.87 for the Peer Group and 3.18 for all
BIF-insured thrifts). Cortland's interest income was supported by the greater
loan portfolio diversification (as described later in this section) into higher
yielding commercial real estate and non-mortgage loans. The reinvestment of the
net
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
------ ------ ------- ------ ------- ------- ---- ----- ------ ------
Cortland SB of Cortland NY
- --------------------------
March 31, 1998 0.07 7.54 3.55 3.99 1.35 2.64 0.00 0.00 0.35 0.35
SAIF-Insured Thrifts 0.92 7.46 4.16 3.29 0.13 3.17 0.10 0.01 0.30 0.42
BIF-Insured Thrifts 1.04 7.30 3.82 3.49 0.14 3.34 0.09 0.00 0.36 0.46
Comparable Group Average 0.88 7.30 3.65 3.65 0.09 3.57 0.05 -0.01 0.24 0.28
Mid-Atlantic Companies 0.76 7.15 3.55 3.60 0.11 3.49 0.03 -0.01 0.32 0.34
Mid-West Companies 1.17 7.66 3.88 3.78 0.04 3.74 0.09 0.00 0.07 0.16
Comparable Group
- ----------------
Mid-Atlantic Companies
- ----------------------
AHCI Ambanc Holding Co., Inc. of NY 0.51 7.12 3.99 3.12 0.19 2.93 0.00 -0.05 0.22 0.17
CATB Catskill Fin. Corp. of NY 1.33 7.22 3.26 3.96 0.09 3.87 0.00 0.03 0.14 0.17
ESBK Elmira Svgs Bank (The) of NY 0.44 7.57 4.04 3.53 0.13 3.39 0.11 -0.04 0.64 0.70
GOSB GSB Financial Corp. of NY 0.73 6.41 2.68 3.73 0.04 3.69 0.00 0.00 0.20 0.20
PEEK Peekskill Fin. Corp. of NY 1.03 6.72 3.14 3.58 0.03 3.55 0.00 0.00 0.12 0.12
SFED SFS Bancorp of Schenectady NY 0.64 7.27 3.92 3.35 0.07 3.28 0.07 0.01 0.20 0.28
SKAN Skaneateles Bancorp Inc of NY 0.64 7.71 3.79 3.92 0.20 3.72 0.04 -0.04 0.71 0.70
Mid-West Companies
- ------------------
DCBI Delphos Citizens Bancorp of OH 1.59 7.40 3.53 3.86 0.01 3.85 0.27 0.00 0.04 0.31
PSFC Peoples Sidney Fin. Corp of OH 1.24 7.83 3.90 3.93 0.03 3.90 0.00 0.00 0.06 0.06
WEHO Westwood Hmstd Fin Corp of OH(1) 0.67 7.76 4.20 3.56 0.08 3.48 0.00 0.00 0.11 0.11
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
------- ------- ------- ------- --------- -------- ------ ---------- --------
Cortland SB of Cortland NY
- --------------------------
March 31, 1998 2.71 0.00 -0.21 0.00 7.89 4.31 3.58 2,446 3.75
SAIF-Insured Thrifts 2.20 0.02 0.07 0.00 7.60 4.82 2.78 4,372 37.02
BIF-Insured Thrifts 2.28 0.04 0.07 0.00 7.52 4.34 3.18 4,210 38.49
Comparable Group Average 2.37 0.00 -0.04 0.00 7.47 4.61 2.87 4,185 39.15
Mid-Atlantic Companies 2.57 0.01 0.03 0.00 7.34 4.32 3.03 3,586 41.18
Mid-West Companies 1.92 0.00 -0.20 0.00 7.77 5.28 2.49 5,581 34.41
Comparable Group
- ----------------
Mid-Atlantic Companies
- ----------------------
AHCI Ambanc Holding Co., Inc. of NY 2.43 0.00 0.16 0.00 7.32 4.69 2.64 2,937 38.97
CATB Catskill Fin. Corp. of NY 1.91 0.00 0.02 0.00 7.35 4.43 2.92 3,843 38.13
ESBK Elmira Svgs Bank (The) of NY 3.13 0.01 -0.04 0.00 7.85 4.35 3.50 2,088 51.53
GOSB GSB Financial Corp. of NY 2.75 0.00 0.06 0.00 6.62 3.78 2.84 3,212 40.75
PEEK Peekskill Fin. Corp. of NY 1.82 0.00 -0.03 0.00 6.81 4.29 2.52 7,834 43.34
SFED SFS Bancorp of Schenectady NY 2.52 0.00 0.03 0.00 7.45 4.56 2.89 3,024 40.29
SKAN Skaneateles Bancorp Inc of NY 3.41 0.03 0.02 0.00 8.01 4.14 3.88 2,165 35.24
Mid-West Companies
- ------------------
DCBI Delphos Citizens Bancorp of OH 1.71 0.00 0.00 0.00 7.48 4.88 2.59 5,363 35.06
PSFC Peoples Sidney Fin. Corp of OH 2.03 0.00 0.00 0.00 7.97 5.04 2.93 5,276 35.99
WEHO Westwood Hmstd Fin Corp of OH(1) 2.02 0.00 -0.59 0.00 7.88 5.92 1.95 6,103 32.18
(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 3.9
conversion proceeds may serve to initially dilute the Bank's asset yields due to
current market rates on short- to intermediate-term investment securities but
the net interest margin should increase with an increase in the IEA/IBL ratio.
In another key area of core earnings strength, and offsetting in part the
advantage in the net interest margin, the Bank operates with a higher operating
expense ratio than the Peer Group (2.71 percent versus 2.37 percent of assets
for the Peer Group), which is attributable to a relatively large number of
employees for the Bank's asset size (as shown in Table 3.3, assets/full time
employee totaled $2,446 for Cortland versus $4,185 for the Peer Group. In
addition, operating expenses have been elevated in recent periods due to
professional fees and other costs incurred in connection with the officer
defalcation and problem loan issues. Going forward, Cortland's operating
expenses will be subject to increase related to operations as a publicly-held
company and stock plan expenses.
Non-interest operating income made a higher contribution to the Bank's
earnings than the Peer Group's earnings, offsetting some of the disadvantage in
the operating expense area. For the trailing twelve months ended March 31, 1998,
the Bank recorded non-interest operating income of 0.35 percent of average
assets versus a level of 0.28 percent recorded by the Peer Group. Going forward,
the Bank anticipates that non-interest operating income will continue to
contribute similar levels to overall revenues.
When viewed together, net interest income, other operating income and
operating expenses provide insight into an institution's earnings strength,
since those sources of income and expense 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, the Bank's efficiency ratio of 62.4 percent compares less favorably than
the Peer Group's ratio of 60.3 percent. Both ratios are higher than the average
of 58.7 percent for all BIF-insured savings institutions.
During the most recent fiscal year, Cortland recorded non-operating
expense of 0.21 percent of average assets, while the Peer Group as a whole
recorded net non-operating expense of 0.04 percent of average assets, although
most of the Peer Group's non-operating expense was due to one savings
institution. Excluding this one Peer Group member, the Peer Group's net
non-operating income totaled a minimal 2 basis points. The Bank recorded
non-operating expense primarily in the form of losses on the sale of REO and
gains on the sale of securities.
The largest income statement disadvantage in comparison to the Peer Group
for Cortland was the level of loan loss provisions. During the most recent
twelve month period, Cortland incurred loan loss provisions of 1.35 percent of
average assets, well in excess of the Peer Group average of 0.14 percent, and
this difference was the
RP Financial, LC.
Page 3.10
primary reason for the Bank's minimal profitability in the last twelve months.
As discussed in Chapter One, Cortland established loan loss provisions in order
to write down a portion of the loan portfolio to fair value in connection with
the recently completed sale of problem loans. Such provisions totaled $3.150
million for the most recent twelve month period.
Loan Composition
Table 3.4 presents data related to the loan composition of the Bank and
the Peer Group. The similar emphasis on residential lending for the Bank in
comparison to the Peer Group was evident, with 1-4 family permanent mortgage
loans accounting for 59.4 percent and 58.5 percent of the Bank's and the Peer
Group's total loan and MBS portfolios, respectively. The Peer Group, however,
maintains a relatively larger investment in MBS than the Bank.
The Bank's loan portfolio exhibited greater diversification into higher
risk weight loans than the Peer Group's loan portfolio. Commercial real estate
lending and consumer lending are the Bank's primary methods of lending
diversification, and such loans comprised 17.6 and 9.2 percent of the total loan
and MBS portfolio at March 31, 1998. The Peer Group achieved their loan
portfolio diversification primarily through commercial real estate and
commercial business lending categories. The Peer Group's loan diversification
totaled 20.82 percent of total loans and MBS, while Cortland's combined level of
these loan categories totaled 30.64 percent. The Bank reported a higher
risk-weighted assets ratio than the Peer Group at 59.92 and 50.45 percent,
respectively. While Cortland does not maintain a loans serviced for others
portfolio, several members of the Peer Group maintain a moderate level of loans
serviced for others, representing an additional source of income.
Credit Risk
Cortland's credit risk exposure appears to be higher than the Peer Group's
exposure based on the Bank's higher level of risk-weighted assets and lower
proportion of 1-4 family loans and MBS held in portfolio. In addition, the Bank
maintains a higher level of NPAs, offset by a higher reserve coverage ratio than
the Peer Group. As shown in Table 3.5, as of March 31, 1998, the Bank recorded
NPAs of 0.96 percent of assets, higher than the Peer Group average of 0.71
percent, and maintained a similar ratio of non-performing loans ("NPLs") to
loans of 0.95 percent versus 0.96 percent for the Peer Group. Most of the Bank's
and Peer Group's NPAs consist of non-accruing loans, although Cortland reported
a higher level of real estate owned. The Bank maintained a higher level of loss
reserves as a percent of loans receivable (1.45 percent versus 0.80 percent for
the Peer Group), and a higher ratio of reserves as a percent of total NPAs.
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)
Cortland SB of Cortland NY 11.39 59.37 0.15 17.56 3.75 9.18 59.92 0 0
SAIF-Insured Thrifts 14.85 62.82 5.52 11.17 6.06 1.71 52.98 386,542 3,584
BIF-Insured Thrifts 16.23 53.27 2.01 21.30 4.16 3.30 56.24 1,092,937 11,767
Comparable Group Average 21.47 58.50 1.20 9.12 8.04 2.46 50.45 7,317 5
Comparable Group
- ----------------
AHCI Ambanc Holding Co., Inc. of NY 35.78 41.39 0.85 10.91 8.46 2.45 42.02 0 0
CATB Catskill Fin. Corp. of NY 22.04 62.93 0.27 3.19 11.93 0.02 34.92 0 0
DCBI Delphos Citizens Bancorp of OH 16.79 73.11 5.72 7.60 2.37 0.00 49.41 0 0
ESBK Elmira Svgs Bank (The) of NY 5.63 38.32 0.93 10.92 36.66 7.78 67.17 33,368 0
GOSB GSB Financial Corp. of NY NA NA NA NA NA NA 46.81 6,498 0
PEEK Peekskill Fin. Corp. of NY 70.63 28.19 0.49 0.45 0.47 0.00 25.44 0 0
PSFC Peoples Sidney Fin. Corp of OH NA NA NA NA NA NA 63.82 0 0
SFED SFS Bancorp of Schenectady NY 15.34 80.21 0.25 3.65 0.42 0.00 53.99 3,215 0
SKAN Skaneateles Bancorp Inc of NY 1.90 69.67 0.87 14.60 3.76 9.23 67.09 24,851 0
WEHO Westwood Hmstd Fin Corp of OH(1) 3.66 74.19 0.24 21.65 0.26 0.18 53.80 5,242 53
(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.
- ------------------------------------------
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) (%)
Cortland SB of Cortland NY 0.33 0.96 0.95 1.45 152.95 100.09 3,109 2.02
SAIF-Insured Thrifts 0.26 0.67 0.71 0.80 195.99 138.70 247 0.09
BIF-Insured Thrifts 0.17 0.64 0.88 1.28 192.89 174.76 268 0.07
Comparable Group Average 0.08 0.71 0.96 0.80 139.36 97.29 22 0.03
Comparable Group
- ----------------
AHCI Ambanc Holding Co., Inc. of NY 0.03 0.62 0.93 1.37 147.90 122.28 80 0.11
CATB Catskill Fin. Corp. of NY 0.08 0.29 0.50 1.49 296.88 219.08 29 0.09
DCBI Delphos Citizens Bancorp of OH 0.00 0.56 NA 0.12 NA 17.75 0 0.00
ESBK Elmira Svgs Bank (The) of NY 0.19 0.68 0.63 0.85 134.69 97.63 30 0.07
GOSB GSB Financial Corp. of NY 0.00 0.10 0.16 0.24 147.83 147.83 1 -0.01
PEEK Peekskill Fin. Corp. of NY 0.08 0.89 2.65 1.39 52.52 38.25 0 0.00
PSFC Peoples Sidney Fin. Corp of OH 0.00 1.10 0.81 0.44 54.15 35.55 4 -0.01
SFED SFS Bancorp of Schenectady NY 0.05 0.72 0.84 0.61 72.48 66.56 4 -0.09
SKAN Skaneateles Bancorp Inc of NY 0.35 2.01 2.00 1.21 60.25 49.89 71 0.13
WEHO Westwood Hmstd Fin Corp of OH(1) 0.00 0.12 0.08 0.23 287.50 178.06 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 3.13
Interest Rate Risk
Table 3.6 reflects the relative interest rate risk exposure of Cortland
and the Peer Group. The Bank's lower capital level was the key factor
contributing to its lower IEA/IBL ratio relative to the Peer Group (112.7
percent versus 122.9 percent, respectively). The Bank's lower capital and
IEA/IBL ratios increases its funding costs relative to the Peer Group. However,
the Bank's capital ratio and IEA/IBL ratio will increase on a post-conversion
basis. The Bank maintained a higher ratio of non-interest earning assets to the
Peer Group.
In the absence of available or comparable gap and rate shock analyses for
the Peer Group, the change in the quarterly net interest income ratio to average
assets for the Bank and the Peer Group has been examined in relation to the
change in market interest rates. As shown in Table 3.6, the Bank's net interest
margin has recently shown similar sensitivity to changing market interest rates
in comparison to the Peer Group's average net interest margin. On a pro forma
basis, the Bank's higher capital position and reinvestment of proceeds in short-
to intermediate-term securities can be expected to lower exposure to changes in
interest rates.
Summary
Based on the above analysis and the criteria employed by in the Peer Group
selection process, the Peer Group appears to form a reasonable basis for
determining the pro forma market value of the Bank, subject to the adjustments
noted in the following section.
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
---------------------------- Quarterly Change in Net Interest Income
Non-Earn. ----------------------------------------------------------
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)
Cortland SB of Cortland NY 13.5 112.7 3.9 4 -7 -8 1 18 0
SAIF-Insured Thrifts 13.2 115.3 3.4 0 -3 -4 2 0 5
BIF-Insured Thrifts 10.6 109.6 3.8 -5 -2 -4 -6 2 7
Comparable Group Average 18.4 122.9 2.3 -3 4 6 -3 12 0
Comparable Group
- ----------------
AHCI Ambanc Holding Co., Inc. of NY 11.7 115.1 2.3 -8 2 -27 -5 3 -8
CATB Catskill Fin. Corp. of NY 23.4 131.2 1.7 -6 -11 -8 -8 10 15
DCBI Delphos Citizens Bancorp of OH 25.0 132.7 1.1 -15 15 -3 -3 84 -12
ESBK Elmira Svgs Bank (The) of NY 6.2 103.5 3.7 12 -7 -1 0 -4 -2
GOSB GSB Financial Corp. of NY 28.1 137.0 3.2 -18 58 80 -77 NA NA
PEEK Peekskill Fin. Corp. of NY 23.0 131.0 1.3 -3 -6 -5 4 -17 9
PSFC Peoples Sidney Fin. Corp of OH 25.2 131.8 1.8 2 -4 8 66 7 6
SFED SFS Bancorp of Schenectady NY 12.4 113.4 2.3 9 -9 -1 -3 3 -8
SKAN Skaneateles Bancorp Inc of NY 6.8 104.8 3.7 4 -12 10 18 9 NA
WEHO Westwood Hmstd Fin Corp of OH(1) 22.5 128.3 1.5 NA 13 4 -19 11 NA
(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, prepared pursuant to the
approved valuation methodology promulgated by the OTS, and valuation factors
used to determine the estimated pro forma market value of the common stock of
the Holding Company. The common stock will be issued in conjunction with the
conversion of Cortland from the mutual-to-stock form of ownership. The valuation
has been prepared utilizing the pro forma valuation methodology promulgated by
the OTS, most recently set forth in their 1994 valuation guidelines.
Appraisal Guidelines
The OTS appraisal guidelines, most recently amended in written form in
October 1984, specify the methodology for estimating the pro forma market value
of an institution pursuant to a mutual-to-stock conversion. Such valuation
guidelines are relied upon by the New York State Department of Banking (the
"Department") and the FDIC in evaluating conversion appraisals and neither
agency has issued separate written valuation guidelines. The valuation
methodology provides for: (1) selection of a peer group of comparable seasoned
publicly-traded institutions whose pricing is not distorted due to a variety of
factors; (2) a fundamental analysis of the subject company to the peer group;
and (3) a valuation analysis in which the pro forma market value of the subject
company is determined based on the market pricing of the peer group as of the
date of the valuation, incorporating valuation adjustments for key differences.
In addition, the pricing characteristics of recent conversions, both at
conversion and in the aftermarkets, must be considered.
RP Financial Approach to the Valuation
RP Financial's valuation analysis complies with the above referenced
appraisal guidelines. Accordingly, the valuation incorporates a detailed
analysis based on the Peer Group discussed in Chapter III, incorporating
"fundamental analysis" techniques. Additionally, the valuation incorporates a
"technical analysis" of recently completed stock conversions. It should be noted
that such analysis cannot possibly fully account for all the market forces which
impact after-market 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 Holding Company's to-be-issued stock. Throughout the conversion 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 fundamental changes; (3) monitor the external
factors affecting value including, but not limited to,
RP Financial, LC.
Page 4.2
local and national economic conditions, interest rates, and the stock market
environment, including the market for savings institution stocks; and (4)
monitor pending initial and second step conversion offerings (including those in
the offering phase) both regionally and nationally. If material changes should
occur during the conversion process, RP Financial will prepare updated valuation
reports reflecting such changes and their related impact on value, if any, over
the course of the conversion process. RP Financial will also prepare a final
valuation update at the closing of the conversion offering to determine if the
preliminary 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 savings institutions. 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 savings institution stocks, including the Bank, or the Bank'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
such 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 issue, marketing of the issue,
management, and the effect of government regulations and/or regulatory reform.
We have also considered the market for savings institution stocks, and in
particular new issues, to assess the impact on value of the Bank coming to
market at this time.
1. Financial Condition
The financial strength 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 financial strength can be summarized as follows:
RP Financial, LC.
Page 4.3
o Overall A/L Composition. Loans funded by retail deposits were the
components of both Cortland's and the Peer Group's balance sheets.
The Bank maintains a similar proportion of overall loans receivable
to the Peer Group, compared to a higher level of cash and
investments and lower level of investment in MBS. Cortland reported
a higher level of diversification into higher credit risk types of
loans relative to the Peer Group. The Peer Group relied on borrowed
funds to a greater extent than the Bank, although retail deposits
comprised the major portion of the respective funding needs.
o Credit Risk. Cortland maintains comparatively higher NPAs/assets and
REO/assets ratios, along with a higher credit risk profile and
higher risk-weighted assets ratio, and has only recently resolved a
large dollar amount of problem loans through loan sales. While
reserves as a percent of loans receivable were higher than the Peer
Group, the reserve coverage ratio as a percent of total NPAs was
only slightly more favorable than the Peer Group.
o Liquidity. Cortland maintained a higher level of cash and
investments than the Peer Group and a lower balance of MBS. The
Bank's proportion of cash and investments is likely to initially
increase on a pro forma basis. Borrowings were utilized to a higher
degree by the Peer Group, and both maintain ample borrowings
capacity. The Bank's loans generally do not meet secondary market
standards for sale. Overall, Cortland appears to have less balance
sheet liquidity than the Peer Group.
o Capital. While the Bank maintains a lower capital position in
relation to the Peer Group, following the infusion of conversion
proceeds, the Bank's capital position is expected to exceed the Peer
Group average. As a result, the Bank is expected to have more
leverage capacity than the Peer Group. The Bank's pro forma return
on equity ("ROE") is not expected to exceed the Peer Group average
due to lower profitability.
On balance, RP Financial applied a slight downward adjustment for
financial condition.
2. Profitability, Growth and Viability of Earnings
Earnings are an important 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 are typically heavily factored
into an investment decision. The historical income statements of Cortland and
the Peer Group were generally reflective of traditional savings institution
operating strategies, with net interest income and operating expenses being the
major determinants of their respective core earnings. The specific factors
considered in the valuation include:
o Reported Earnings. The Bank reported net income of 0.07 percent of
average assets for the most recent twelve month period versus
earnings of 0.88 percent for the Peer Group. The differential in
reported earnings is due to the Bank's higher levels of loan loss
provisions, non-operating expense and operating expenses, offset by
a higher net interest margin and non-interest income.
o Core Earnings. The Bank maintains a stronger core earnings posture
relative to the Peer Group, as reported earnings were adversely
effected by high levels of loan loss provisions, expenses from the
resolution of REO properties and various costs incurred in
connection with the officer defalcation and problem loan issues. The
Bank operated with a higher level of net interest
RP Financial, LC.
Page 4.4
income, more favorable non-interest operating income and less
favorable operating expenses than the Peer Group. While redeployment
of conversion proceeds into interest-earning assets should enhance
Cortland's net interest income, operating expenses for the Bank are
expected to increase as well. On a pro forma basis, Cortland's core
profitability is expected to exceed that of the Peer Group.
o Interest Rate Risk. Cortland's cumulative one year gap position
measures indicated relatively high exposure to rising interest
rates. Although gap data was not available for the Peer Group, other
analyses indicated a general comparable advantage for the Peer
Group. The pro forma increase in the IEA/IBL ratio can be expected
to reduce the Bank's interest rate risk exposure, but the Bank is
expected to remain at a disadvantage.
o Credit Risk. Loss provisions had a higher impact on the earnings of
the Bank in comparison to the Peer Group. In terms of credit quality
related losses, the Bank maintained higher reserve coverage ratios
as a percent of loans receivable and higher coverage ratios as a
percent of total NPAs. The Bank's higher level of non-residential
loans exposes it to potentially greater credit risk than the Peer
Group, which adds a higher risk of earnings volatility relative to
the Peer Group.
o Earnings Growth Potential. Several factors were considered in
assessing earnings growth potential. In recent years, Cortland
County's overall demographics and economic situation has remained
relatively stable, including the level of overall financial
institution deposit funds. In addition, the Bank currently holds a
substantial market share of Cortland County deposits, and indicating
that future increases in deposits may be difficult to achieve. These
factors, along with continued competition for loans in the local
market and expectations of continued growth in operating expenses,
in part due to operating as a public company and the 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. On a pro forma basis the Bank's pro forma return
on equity will be lower to the Peer Group average, as the lower pro
forma profitability is measured against a comparatively higher
capital position.
Overall, RP Financial made a moderate downward adjustment for
profitability, growth and viability of earnings.
3. Asset Growth
The Bank's asset growth in recent periods has been lower than the Peer
Group's, which has been achieved in part by utilizing borrowed funds as deposit
growth has been insufficient. Cortland's asset growth has been restricted by the
already high deposit market share the Bank maintains in Cortland County, and the
stable demographic and economic situation. The Bank expects to continue to
record relatively slow asset growth following the conversion, and is expected to
have adequate capital post-conversion to support such growth. We concluded that
a slight downward adjustment was warranted for the Bank's asset growth
potential.
RP Financial, LC.
Page 4.5
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. Summary demographic and deposit
market share data for the Bank and the Peer Group is included in Table 4.1. The
Bank's market area of Cortland, and Cortland County, New York is a rural market
that has been experiencing declining levels of population and households in
recent years, while the Peer Group companies operate in larger markets that are
also experiencing declines in population and households. The per capita income
in the Bank's market is below the average of the primary markets of the Peer
Group members. In addition, Cortland maintains a market share of headquarter's
county deposits well in excess of the Peer Group average, indicating a strong
competitive position, although future market share increases may likely be
difficult. The Bank's competitive position is not dissimilar from the average
position of the Peer Group institutions in their primary market areas. On
balance, RP Financial concluded that no adjustment was warranted for market
area.
5. Dividends
While the Bank has not indicated its intention to commence payment of a
cash dividend following the conversion, Cortland's pro forma capitalization and
profitability clearly position the Bank to have the capacity to pay cash
dividends. Historically, savings institutions typically have not established
dividend policies at the time of their conversion to stock ownership. Newly
converted institutions, in general, have preferred to gain market seasoning,
establish an earnings track record and fully invest the conversion proceeds
before establishing a dividend policy. However, during the late-1980s and
early-1990s, with negative publicity surrounding the thrift industry, there was
a tendency for more thrifts to initiate moderate dividend policies concurrent
with their conversion as a means of increasing the attractiveness of the stock
offering. Today, fewer institutions are compelled to initially establish
dividend policies at the time of their conversion offering as (1) industry
profitability has improved, (2) the number of problem thrift institutions has
declined, and (3) the stock market cycle for thrift stocks is generally more
favorable than in the early-1990s. At the same time, with ROE ratios under
pressure, due to high equity levels, well-capitalized institutions are subject
to increased competitive pressures to offer dividends.
As publicly-traded savings institution's capital levels and profitability
have improved and as weakened institutions have been resolved, the proportion of
institutions with cash dividend policies has increased. Eight of the ten
institutions in the Peer Group presently pay regular cash dividends, with
implied dividend yields ranging from 1.15 percent to 2.82 percent. The average
dividend yield on the stocks of the Peer Group institutions was 1.43 percent as
of June 5, 1998, representing an average earnings payout ratio of 36.11 percent.
As of June 5, 1998, approximately 84 percent of all publicly-traded savings
institutions had adopted cash dividend policies (see
Table 4.1
Peer Group Market Area Comparative Analysis
Population Proj.
------------------------ Pop. 1990-97 1997-2002
Institution County 1990 1997 2002 % Change % Change Median Age
- ----------- ------ ---- ---- ---- -------- --------- ----------
(000) (000)
Ambanc Holding Company of NY Montgomery 52 52 52 -0.4% -0.2% 37.3
Catskill Financial Corporation of NY Greene 45 47 49 5.8% 3.8% 37.2
Skaneateles Bancorp, Inc. of NY Onondaga 469 464 461 -1.0% -0.7% 34.3
The Elmira Savings Bank of NY Chemung 95 93 91 -2.6% -1.8% 35.5
Peekskill Financial Corp. of NY Westchester 875 896 910 2.4% 1.6% 37.3
SFS Bancorp, Inc. of NY Schenectady 149 147 145 -1.7% -1.2% 37.0
Westwood Homest. Fin Corp of OH Hamilton 866 854 846 -1.4% -0.9% 34.5
GS Financial Corporation of NY Orange 308 326 339 6.1% 4.0% 33.2
Delphos Citizens Bancorp of OH Allen 110 108 107 -1.6% -1.1% 35.0
Peoples Sidney Fin. Corp. of OH Shelby 45 47 48 4.5% 3.0% 33.7
--- --- --- ---- ---- -----
Averages: 301 303 305 1.0% 0.6% 35.5
Medians: 130 127 126 -0.7% -0.5% 35.3
Cortland Savings Bank Cortland 49 48 48 -1.3% -0.9% 31.6
Per Capita Income
---------------------- Deposit
% State Market
Institution Amount Average Share(1)
- ----------- ------- ----- -----
Ambanc Holding Company of NY 12,121 65.5% 28.2%
Catskill Financial Corporation of NY 13,507 73.0% 29.8%
Skaneateles Bancorp, Inc. of NY 15,641 84.5% 4.0%
The Elmira Savings Bank of NY 13,104 70.8% 21.6%
Peekskill Financial Corp. of NY 27,713 149.8% 0.7%
SFS Bancorp, Inc. of NY 16,937 91.5% 7.1%
Westwood Homest. Fin Corp of OH 19,841 115.1% 0.5%
GS Financial Corporation of NY 17,481 94.5% 2.9%
Delphos Citizens Bancorp of OH 14,868 86.2% 5.8%
Peoples Sidney Fin. Corp. of OH 17,803 103.2% 14.0%
------- ----- -----
Averages: 16,902 93.4% 11.5%
Medians: 16,289 88.9% 6.5%
Cortland Savings Bank Cortland $12,433 67.2% 40.8%
(1) Total institution deposits in headquarters county as percent of total
county deposits, excludes credit unions.
Sources: CACI, Inc, SNL Securities
RP Financial, LC.
Page 4.7
Exhibit IV-1), exhibiting an average yield of 1.91 percent and an average payout
ratio of 36.29 percent. The dividend paying institutions generally maintain
higher than average profitability ratios, facilitating their ability to pay cash
dividends, which supports a market pricing premium on average relative to
non-dividend paying institutions.
The Holding Company's ability following the completion of the conversion
to pay a dividend would appear to be similar relative to the Peer Group based on
higher pro forma capital and similar post-conversion core earnings, and thus no
adjustment is warranted for this valuation factor.
6. Liquidity of the Shares
The Peer Group is by definition composed of companies that are traded in
the public markets, all of which 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 ranged from $21.3 million to $79.3
million as of June 5, 1998, with an average market value of $44.2 million. The
shares outstanding of the Peer Group members ranged from 0.8 million to 4.5
million, with average shares outstanding of approximately 2.4 million. The
Bank's pro forma market value is expected to be more than the comparative Peer
Group averages, and the number of shares expected to be outstanding will be
comparable to the Peer Group. The Bank's stock is expected to be listed on the
NASDAQ National Market System, and accordingly, we anticipate the liquidity of
the Bank's shares will be similar to that of the Peer Group on average, and thus
there has been no valuation adjustment applied for this factor.
7. Marketing of the Issue
We believe that three separate markets exists for savings institution
stocks coming to market such as Cortland: (A) the after-market for public
companies, in which trading activity is regular and investment decisions are
made based upon financial condition, earnings, capital, ROE and dividends; (B)
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 a stock trading
history and reporting quarterly operating results as a publicly-held company;
and (C) the acquisition market for savings institution franchises in New York.
All of these markets were considered in the valuation of the Bank's conversion.
RP Financial, LC.
Page 4.8
A. 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. News of a budget
agreement and a favorable ruling for tobacco companies sent the stock market
soaring to record highs in early-May 1997. Mixed economic data and the Federal
Reserve's decision to leave its target for the federal funds rate unchanged at
its May meeting sustained a positive trend in the stock market through the end
of May. Profit worries caused a sell-off in technology stocks in early-June,
while declining interest rates served to stabilize the broader market.
Technology stocks rallied the stock market to new highs in mid-July, as a number
of technology companies posted favorable second quarter earnings. Favorable
inflation data, including second quarter GDP growth slowing to an annual rate of
2.2 percent, versus 4.9 percent in the first quarter, and comments by the
Federal Reserve Chairman which indicated that an increase in interest rates was
not imminent, spurred bond and stock prices strongly higher during the second
half of July.
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 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
RP Financial, LC.
Page 4.9
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 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-
RP Financial, LC.
Page 4.10
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 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
RP Financial, LC.
Page 4.11
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.
Stocks recovered in early-May 1998, as first quarter economic data
reflected a strong pace of economic expansion with declining inflation. The
favorable economic data powered the DJIA to a new high in early-May, while the
yield on the 30-year bond move back below 6.0 percent. Uncertainty over the
possibility of a rate increase by the Federal Reserve provided for a narrow
trading range through mid-May, while the announced merger between Chrysler and
Daimler-Benz had little impact on the overall market. The stock market reacted
positively to the Federal's decision to leave interest rates at its mid-May
meeting, although the rally was stalled by earnings concerns in the technology
sector. Economic turmoil in Asia and Russia's faltering economy caused stock to
slide further at the end of May. On June 5, 1998, the DJIA closed at 9037.71, an
increase of 21.5 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. Favorable inflation
data and the budget agreement provided for a substantial rally in thrift stocks
in late-April and early-May 1997, as interest rate sensitive issues were
bolstered by declining interest rates. Thrift stocks continued to trend higher
through June and early-July 1997, based on the improved interest rate outlook
and an overall positive outlook for the economy. Generally favorable second
quarter earnings and the 30-year U.S. Treasury bond yield declining below 6.50
percent served to further boost thrift prices in mid-July, with the declining
interest rate environment serving to sustain the rally in thrift prices through
the end of July.
RP Financial, LC.
Page 4.12
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, 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
RP Financial, LC.
Page 4.13
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. On June 5, 1998, the SNL
Index for all publicly-traded thrifts closed at 860.6, an increase of 45.7
percent from one year ago.
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. RP Financial considered the market for new issues,
both at the time of the conversion and in the aftermarket.
RP Financial, LC.
Page 4.14
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. Since early March-1998, conversion offerings completed and began
trading have exhibited an average price increase of 51.2 percent on the first
day of trading. As shown in Table 4.2, the average one week change in price for
conversion offerings completed during the latest three month period ending June
5, 1998 equaled positive 56.3 percent. The average pro forma price/tangible book
and core price/earnings ratios of the recent conversions was 79.0 percent and
20.9 times, respectively. The conversions that have began trading since
early-March 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 Table 4.3), we
note there exists a considerable difference in pricing ratios compared to the
universe of all publicly-traded savings institutions. Specifically, the current
average P/B ratio of the conversions completed in the most recent three month
period of 139.85 percent reflects a discount of 18.0 percent from the average
P/B ratio of all publicly-traded savings institutions (equal to 170.54 percent),
and the average core P/E ratio of 26.11 times reflects a premium of 26.7 percent
from the all public average core P/E ratio of 20.61 times. The pricing ratios of
the higher capitalized but lower earning recently converted thrifts (with
resulting lower return on equity measures) 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.
C. The Acquisition Market
Also considered in the valuation was the potential impact on
Cortland's stock price of recently completed and pending acquisitions of other
thrifts operating in the Bank's market area. As shown in Exhibit IV-4, there
were 13 New York thrifts acquired in 1996, 1997 and year-to-date 1998, and 5
acquisitions of New York thrifts are currently pending. The recent acquisition
activity involving New York savings institutions may imply a certain degree of
acquisition speculation for the Bank's stock. To the extent that acquisition
speculation may impact the Bank's offering, we have largely taken this into
account in selecting largely New York based companies, which operate in markets
that have experienced a comparable level of acquisition activity as the Bank's
market and, thus, are subject to the same type of acquisition speculation that
may influence Cortland's trading price.
RP Financial, LC.
Table 4.2
Pricing Characteristics and After-Market Trends
Recent Conversions Completed (Last Three Months)
- ------------------------------------------------------------------------------------------------------------------------
Institutional Information Pre-Conversion Data
--------------------------------------------
Financial Info. Asset Quality
- ------------------------------------------------------------------------------------------------------------------------
Conversion Equity/ NPAs/ Res.
Institution State Date Ticker Assets Assets Assets Cov.
- ----------- ----- ---- ------ ------ ------ ------ ----
($Mil) (%) (%)(2) (%)
- ------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
BOC Financial Corp. NC 05/01/98 Pink $ 25 17.99% 0.19% 64%
Columbia Financial of KY KY 04/15/98 CFKY 104 12.59% 0.58% 50%
Adirondack Fin. Services NY* 04/07/98 Pink 60 5.57% 6.10% 44%
Heritage Bancorp, Inc. SC* 04/07/98 HBSC 252 11.91% 0.54% 106%
Quitman Bancorp, Inc. GA 04/07/98 Pink 40 7.52% 0.42% 209%
EFC Bancorp, Inc. IL 04/06/98 EFC 332 9.71% 0.62% 55%
Northeast Penn. Fin. Corp. PA 04/01/98 NEP 387 7.63% 0.28% 135%
Bay State Bancorp, Inc. MA 03/31/98 BYS 250 8.08% 0.80% 107%
Independence Community NY* 03/17/98 ICBC 3,794 8.56% 0.69% 117%
Cavalry Bancorp, Inc. TN 03/17/98 CAVB 276 10.69% 0.02% 43%
SFSB Holding Company PA 03/02/98 SFSH 38 9.20% 0.59% 47%
Averages - Standard Conversions: $ 505 9.95% 0.98% 89%
Medians - Standard Conversions: $ 250 9.20% 0.58% 64%
Second-Step Conversions
- -----------------------
SouthBanc Shares, Inc. SC* 04/15/98 SBAN $ 292 10.48% 0.30% 362%
First Source Bancorp, Inc. NJ 04/09/98 FSLA 1,049 9.69% 0.54% 107%
Peoples Bancorp, Inc. NJ 04/09/98 TSBS 640 17.18% 0.92% 61%
Pocahontas Bancorp AR* 04/01/98 PFSL 389 6.36% 0.23% 190%
Harbor Florida Bancshares FL* 03/19/98 HARB 1,129 8.95% 0.43% 240%
Averages - 2nd Step Conversions: $ 700 10.53% 0.48% 192%
Medians - 2nd Step Conversions: $ 700 9.69% 0.43% 190%
Averages - All Conversions: $ 566 10.13% 0.83% 121%
Medians - All Conversions: $ 284 9.45% 0.54% 106%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Information Offering Information Contribution to
Charitable Found.
- ------------------------------------------------------------------------------------------------------------------------------------
Conversion Gross % of Exp./ % of
Institution State Date Ticker Proc. Mid. Proc. Form Offering
- ----------- ----- ---- ------ ----- ---- ----- ---- --------
($Mil.) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
BOC Financial Corp. NC 05/01/98 Pink $ 9.3 132% 4.9% N.A. N.A.
Columbia Financial of KY KY 04/15/98 CFKY 26.7 132% 2.8% N.A. N.A.
Adirondack Fin. Services NY* 04/07/98 Pink 6.6 132% 7.7% N.A. N.A.
Heritage Bancorp, Inc. SC* 04/07/98 HBSC 69.4 132% 1.9% N.A. N.A.
Quitman Bancorp, Inc. GA 04/07/98 Pink 6.6 132% 5.7% N.A. N.A.
EFC Bancorp, Inc. IL 04/06/98 EFC 69.4 132% 2.3% Stock 8.00%
Northeast Penn. Fin. Corp. PA 04/01/98 NEP 59.5 132% 2.4% Stock 8.00%
Bay State Bancorp, Inc. MA 03/31/98 BYS 46.9 132% 3.2% Stock 8.00%
Independence Community NY* 03/17/98 ICBC 704.1 132% 2.3% Stock 8.00%
Cavalry Bancorp, Inc. TN 03/17/98 CAVB 75.4 132% 1.8% N.A. N.A.
SFSB Holding Company PA 03/02/98 SFSH 7.3 132% 4.4% N.A. N.A.
Averages - Standard Conversions: $ 98.3 132% 3.6% N.A. N.A.
Medians - Standard Conversions: $ 46.9 132% 2.8% N.A. N.A.
Second-Step Conversions
- -----------------------
SouthBanc Shares, Inc. SC* 04/15/98 SBAN $ 45.6 132% 2.7% N.A. N.A.
First Source Bancorp, Inc. NJ 04/09/98 FSLA 165.5 132% 1.4% N.A. N.A.
Peoples Bancorp, Inc. NJ 04/09/98 TSBS 238.1 132% 0.8% N.A. N.A.
Pocahontas Bancorp AR* 04/01/98 PFSL 35.7 132% 2.1% N.A. N.A.
Harbor Florida Bancshares FL* 03/19/98 HARB 166.6 132% 1.1% N.A. N.A.
Averages - 2nd Step Conversions: $ 130.3 132% 1.6% N.A. N.A.
Medians - 2nd Step Conversions: $ 165.5 132% 1.4% N.A. N.A.
Averages - All Conversions: $ 108.3 132% 3.0% N.A. N.A.
Medians - All Conversions: $ 53.2 132% 2.4% N.A. N.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Information Insider Purchases Pro Forma Data
-----------------------
Pricing Ratios(4)
------------------------- -----------------------
Benefit Plans Initial
Conversion Recog. Mgmt.& Dividend Core
Institution State Date Ticker ESOP Plans Dirs. Yield P/TB P/E(5) P/A
- ----------- ----- ---- ------ ---- ----- ----- ----- ---- ------ ---
(%) (%) (%)(3) (%) (%) (x) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
BOC Financial Corp. NC 05/01/98 Pink 8.0% 4.0% 3.1% 0.00% 76.4% 31.4x 28.7%
Columbia Financial of KY KY 04/15/98 CFKY 8.0% 4.0% 7.5% 0.00% 74.5% 23.3 21.1%
Adirondack Fin. Services NY* 04/07/98 Pink 8.0% 4.0% 25.5% 0.00% 76.6% N.M. 10.2%
Heritage Bancorp, Inc. SC* 04/07/98 HBSC 8.0% 4.0% 3.6% 2.00% 77.3% 19.3 22.3%
Quitman Bancorp, Inc. GA 04/07/98 Pink 8.0% 4.0% 5.8% 2.00% 78.3% 16.7 14.5%
EFC Bancorp, Inc. IL 04/06/98 EFC 8.0% 4.0% 4.4% 0.00% 80.5% 18.0 19.1%
Northeast Penn. Fin. Corp. PA 04/01/98 NEP 8.0% 4.0% 3.6% 0.00% 80.5% 23.7 14.7%
Bay State Bancorp, Inc. MA 03/31/98 BYS 8.0% 4.0% 2.7% 0.00% 84.5% 19.0 17.5%
Independence Community NY* 03/17/98 ICBC 8.0% 4.0% 0.1% 0.00% 85.1% 20.2 17.3%
Cavalry Bancorp, Inc. TN 03/17/98 CAVB 8.0% 4.0% 20.3% 0.00% 79.8% 16.5 21.7%
SFSB Holding Company PA 03/02/98 SFSH 8.0% 4.0% 7.9% 0.00% 76.1% N.M. 16.6%
Averages - Standard Conversions: 8.0% 4.0% 7.7% 0.36% 79.0% 20.9x 18.5%
Medians - Standard Conversions: 8.0% 4.0% 4.4% 0.00% 78.3% 19.3x 17.5%
Second-Step Conversions
- -----------------------
SouthBanc Shares, Inc. SC* 04/15/98 SBAN 0.0% 4.0% 24.1% 0.00% 117.6% 26.7x 25.7%
First Source Bancorp, Inc. NJ 04/09/98 FSLA 8.0% 4.0% 0.5% 1.00% 129.6% 24.5 26.6%
Peoples Bancorp, Inc. NJ 04/09/98 TSBS 4.0% 4.0% 0.3% 1.00% 114.5% 26.6 42.3%
Pocahontas Bancorp AR* 04/01/98 PFSL 8.0% 4.0% 1.8% 0.00% 120.3% 21.2 15.9%
Harbor Florida Bancshares FL* 03/19/98 HARB 8.0% 4.0% 20.3% 3.50% 126.5% 17.8 24.1%
Averages - 2nd Step Conversions: 5.6% 4.0% 9.4% 1.10% 121.7% 23.4x 26.9%
Medians - 2nd Step Conversions: 8.0% 4.0% 1.8% 1.00% 120.3% 24.5x 25.7%
Averages - All Conversions: 7.3% 4.0% 8.2% 0.59% 92.4% 21.8x 21.1%
Medians - All Conversions: 8.0% 4.0% 4.0% 0.00% 80.5% 20.7x 20.1%
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Institutional Information
-----------------------------
Financial Charac.
-----------------------------
Conversion IPO
Institution State Date Ticker ROA TE/A ROE Price
- ----------- ----- ---- ------ --- ---- --- -----
(%) (%) (%) ($)
- ----------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
BOC Financial Corp. NC 05/01/98 Pink 0.9% 37.5% 2.4% $ 10.00
Columbia Financial of KY KY 04/15/98 CFKY 0.9% 28.3% 3.2% 10.00
Adirondack Fin. Services NY* 04/07/98 Pink -0.5% 13.3% -3.7% 10.00
Heritage Bancorp, Inc. SC* 04/07/98 HBSC 1.2% 28.8% 4.0% 15.00
Quitman Bancorp, Inc. GA 04/07/98 Pink 0.9% 18.6% 4.7% 10.00
EFC Bancorp, Inc. IL 04/06/98 EFC 1.1% 23.8% 4.5% 10.00
Northeast Penn. Fin. Corp. PA 04/01/98 NEP 0.6% 18.3% 3.4% 10.00
Bay State Bancorp, Inc. MA 03/31/98 BYS 0.9% 20.7% 4.5% 20.00
Independence Community NY* 03/17/98 ICBC 0.6% 20.3% 3.2% 10.00
Cavalry Bancorp, Inc. TN 03/17/98 CAVB 1.3% 27.2% 4.8% 10.00
SFSB Holding Company PA 03/02/98 SFSH -0.2% 21.8% -0.9% 10.00
Averages - Standard Conversions: 0.7% 23.5% 2.7% $ 11.36
Medians - Standard Conversions: 0.9% 21.8% 3.4% $ 10.00
Second-Step Conversions
- -----------------------
SouthBanc Shares, Inc. SC* 04/15/98 SBAN 0.9% 21.9% 4.3% $ 20.00
First Source Bancorp, Inc. NJ 04/09/98 FSLA 1.1% 20.5% 5.3% 10.00
Peoples Bancorp, Inc. NJ 04/09/98 TSBS 1.6% 36.9% 4.3% 10.00
Pocahontas Bancorp AR* 04/01/98 PFSL 0.8% 13.2% 5.7% 10.00
Harbor Florida Bancshares FL* 03/19/98 HARB 1.4% 19.1% 7.3% 10.00
Averages - 2nd Step Conversions: 1.2% 22.3% 5.4% $ 12.00
Medians - 2nd Step Conversions: 1.1% 20.5% 5.3% $ 10.00
Averages - All Conversions: 0.8% 23.1% 3.6% $ 11.56
Medians - All Conversions: 0.9% 21.2% 4.3% $ 10.00
- ----------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Institutional Information Post-IPO Pricing Trends
-------------------------------------------------------------
Closing Price:
-------------------------------------------------------------
First After After
Conversion Trading % First % First %
Institution State Date Ticker Day Change Week(6) Change Month(7) Change
- ----------- ----- ---- ------ --- ------ ------- ------ -------- ------
($) (%) ($) (%) ($) (%)
- -------------------------------------------------------------------------------------------------------------------------
Standard Conversions
- --------------------
BOC Financial Corp. NC 05/01/98 Pink $ 13.68 36.8% $ 14.75 47.5% $ 13.25 32.5%
Columbia Financial of KY KY 04/15/98 CFKY 17.13 71.3% 15.94 59.4% 16.00 60.0%
Adirondack Fin. Services NY* 04/07/98 Pink 12.00 20.0% 12.13 21.3% 12.31 23.1%
Heritage Bancorp, Inc. SC* 04/07/98 HBSC 22.31 48.7% 22.00 46.7% 22.00 46.7%
Quitman Bancorp, Inc. GA 04/07/98 Pink 12.81 28.1% 14.31 43.1% 14.75 47.5%
EFC Bancorp, Inc. IL 04/06/98 EFC 14.75 47.5% 14.94 49.4% 14.69 46.9%
Northeast Penn. Fin. Corp. PA 04/01/98 NEP 15.50 55.0% 15.38 53.8% 15.44 54.4%
Bay State Bancorp, Inc. MA 03/31/98 BYS 29.87 49.4% 29.63 48.1% 30.56 52.8%
Independence Community NY* 03/17/98 ICBC 17.25 72.5% 17.56 75.6% 18.13 81.3%
Cavalry Bancorp, Inc. TN 03/17/98 CAVB 20.56 105.6% 24.38 143.8% 24.00 140.0%
SFSB Holding Company PA 03/02/98 SFSH 12.81 28.1% 13.13 31.3% 14.38 43.8%
Averages - Standard Conversions: $ 17.15 51.2% $ 17.65 56.3% $ 17.77 57.2%
Medians - Standard Conversions: $ 15.50 48.7% $ 15.38 48.1% $ 15.44 47.5%
Second-Step Conversions
- -----------------------
SouthBanc Shares, Inc. SC* 04/15/98 SBAN $ 22.75 13.8% $ 22.50 12.5% $ 20.88 4.4%
First Source Bancorp, Inc. NJ 04/09/98 FSLA 10.56 5.6% 10.50 5.0% 10.50 5.0%
Peoples Bancorp, Inc. NJ 04/09/98 TSBS 12.00 20.0% 10.56 5.6% 10.50 5.0%
Pocahontas Bancorp AR* 04/01/98 PFSL 10.75 7.5% 10.25 2.5% 9.94 -0.6%
Harbor Florida Bancshares FL* 03/19/98 HARB 12.25 22.5% 11.69 16.9% 12.81 28.1%
Averages - 2nd Step Conversions: $ 13.66 13.9% $ 13.10 8.5% $ 12.93 8.4%
Medians - 2nd Step Conversions: $ 12.00 13.8% $ 10.56 5.6% $ 10.50 5.0%
Averages - All Conversions: $ 16.06 39.5% $ 16.23 41.4% $ 16.26 41.9%
Medians - All Conversions: $ 14.22 32.5% $ 14.84 44.9% $ 14.72 8.4%
- ---------------------------------------------------------------------------------------------------------------------------
Note: * - Appraisal performed by RP Financial; "NT" - Not Traded; "NA" - Not
Applicable, Not Available.
(1) Non-OTS regulated thrift.
(2) As reported in summary pages of prospectus.
(3) As reported in prospectus.
(4) Does not take into account the adoption of SOP 93-6.
(5) Excludes impact of special SAIF assessment on earnings.
(6) Latest price if offering less than one week old.
(7) Latest price if offering more than one week but less than one month old.
(8) Simultaneously converted to commercial bank charter.
June 1, 1998
- --------------------------------------------------------------------------------
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 June 5, 1998
Market
Capitalization Per Share Data Pricing Ratios(3)
--------------- --------------- -------------------------------
Core Book
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
($) ($Mil) ($) ($) (X) (%) (%) (%)
SAIF-Insured Thrifts 21.84 174.72 0.96 13.81 20.15 160.44 20.63 166.60
All Public Companies 22.34 251.09 1.00 13.73 19.90 165.97 20.66 170.54
Special Selection Grouping(8) 15.96 223.55 0.49 12.75 25.84 138.59 30.16 139.85
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
BYS Bay State Bancorp of MA 27.75 70.35 1.05 23.66 26.43 117.29 24.29 117.29
CAVB Cavalry Bancorp of TN 22.50 169.61 0.43 13.23 NM 170.07 48.35 170.07
CFKY Columbia Financial of KY 15.00 40.07 0.15 13.42 NM 111.77 31.61 301.20
EFC EFC Bancorp Inc of IL 13.50 93.65 0.56 12.42 24.11 108.70 25.84 108.70
FSLA First Source Bancorp of NJ 10.00 317.40 0.41 7.72 24.39 129.53 26.62 129.53
HARB Harbor Florida Bancshrs of FL 11.94 366.55 0.45 8.29 25.40 144.03 28.54 145.61
HBSC Heritage Bancorp, Inc of SC 20.50 94.89 0.78 19.41 26.28 105.62 30.40 105.62
HLFC Home Loan Financial Corp of OH 15.50 34.84 0.37 13.82 NM 112.16 43.67 112.16
ICBC Independence Comm Bnk Cp of NY 16.81 1183.61 0.49 12.55 NM 133.94 29.07 143.06
NEP Northeast PA Fin. Corp of PA 14.50 93.19 0.42 12.43 NM 116.65 21.30 116.65
TSBS Peoples Bancorp Inc of NJ 10.00 362.37 0.15 3.09 NM 323.62 40.77 NM
PFSL Pocahontas Bancorp of AR 9.88 65.89 0.35 8.72 27.44 113.30 16.44 113.30
SBAN SouthBanc Shares Inc. of SC 19.56 13.79 0.73 17.01 26.79 114.99 25.13 114.99
Dividends(4) Financial Characteristics(6)
------- ----------------------- ----- -----------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ --------------- ---------------
Financial Institution P/CORE Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- -------- ------- ------ ------- ------ ------- ------- ------- ------- ------- -------
(x) ($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
SAIF-Insured Thrifts 20.81 0.35 1.64 31.79 1,058 13.89 0.67 0.93 7.95 0.88 7.48
All Public Companies 20.61 0.36 1.62 31.61 1,440 13.52 0.66 0.95 8.43 0.90 7.94
Special Selection Grouping(8) 26.11 0.16 1.07 18.52 763 22.94 0.44 1.00 5.44 0.91 5.00
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
BYS Bay State Bancorp of MA 26.43 0.00 0.00 0.00 290 20.71 0.77 0.92 4.44 0.92 4.44
CAVB Cavalry Bancorp of TN NM 0.00 0.00 0.00 351 28.43 0.01 1.48 7.18 1.02 4.98
CFKY Columbia Financial of KY NM 0.00 0.00 0.00 127 28.28 NA 0.91 3.20 0.32 1.12
EFC EFC Bancorp Inc of IL 24.11 0.00 0.00 0.00 362 23.77 0.46 1.07 4.51 1.07 4.51
FSLA First Source Bancorp of NJ 24.39 0.12 1.20 29.27 1,192 20.55 0.47 1.09 5.31 1.09 5.31
HARB Harbor Florida Bancshrs of FL 26.53 0.26 2.18 57.78 1,284 19.81 0.47 1.25 11.33 1.20 10.84
HBSC Heritage Bancorp, Inc of SC 26.28 0.00 0.00 0.00 312 28.79 NA 1.16 4.02 1.16 4.02
HLFC Home Loan Financial Corp of OH NM 0.00 0.00 0.00 80 38.94 0.44 1.30 5.70 1.30 5.70
ICBC Independence Comm Bnk Cp of NY NM 0.00 0.00 0.00 4,072 21.70 0.70 0.64 2.95 0.85 3.90
NEP Northeast PA Fin. Corp of PA NM 0.00 0.00 0.00 437 18.26 0.22 0.62 3.38 0.62 3.38
TSBS Peoples Bancorp Inc of NJ NM 0.10 1.00 66.67 889 12.60 0.64 1.06 6.69 0.79 5.02
PFSL Pocahontas Bancorp of AR 28.23 0.24 2.43 68.57 401 14.51 0.25 0.62 7.74 0.61 7.53
SBAN SouthBanc Shares Inc. of SC 26.79 1.40 7.16 NM 117 21.85 NA 0.94 4.29 0.94 4.29
(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 4.17
8. Management
Cortland's management team has experience and expertise in all of the key
areas of the Bank's operations. Exhibit IV-5 lists Cortland's Board of Trustees
and executive management with summary resumes, showing that the Bank has also
recently hired experienced professionals for the positions of chief operating
officer and chief financial officer. The Bank's operations to date indicates
that Cortland's management team, in conjunction with the Board, has developed
and implemented an effective operating philosophy. With the recent additions of
two senior officers, Cortland currently has no apparent senior management or
Board vacancies and there appears to be a well-defined organizational structure.
Similarly, the financial results of the Peer Group companies indicate that
they have been effectively managed, as all of the Peer Group companies
maintained capital positions in compliance with regulatory requirements, solid
core earnings and favorable credit quality measures. We have therefore concluded
that, in general, Cortland is currently being operated at least as effectively
as the Peer Group companies and no adjustment for this factor was necessary.
9. Effect of Government Regulation and Regulatory Reform
The 1996 recapitalization of the SAIF insurance fund has removed the
difference in deposit insurance costs between BIF and SAIF-insured institutions.
Thus, although five of the Peer Group members are SAIF-insured, the deposit
insurance costs are similar. As a fully-converted BIF-insured institution,
Cortland will operate in substantially the same regulatory environment as the
Peer Group members -- all of whom are adequately capitalized institutions
(Exhibit IV-6 reflects the Bank's pro forma regulatory capital ratios). As
discussed previously, Cortland has been operating since late 1995 under and MOU
with the FDIC to address certain loan origination and compliance matters.
Although Cortland believes it has complied with all aspects of the MOU, there is
no assurance that the FDIC will terminate the MOU in the near future. The Peer
Group members operate with no apparent regulatory restrictions. On balance, RP
Financial concluded that a slight downward adjustment to the Bank's value was
warranted for this factor.
Summary of Adjustments
Overall, we believe the Bank's pro forma market value should take into
account the valuation adjustments relative to the Peer Group:
RP Financial, LC.
Page 4.18
Key Valuation Parameters: Valuation Adjustment
------------------------- --------------------
Financial Condition Slight Downward
Profitability, Growth and Viability of Earnings Moderate Downward
Asset Growth Slight Downward
Primary Market Area No Adjustment
Dividends No Adjustment
Liquidity of the Shares No Adjustment
Marketing of the Issue No Adjustment
Management No Adjustment
Effect of Government Regulations Slight Downward
and Regulatory Reform
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 Cortland's to-be-issued stock -- the
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
Cortland's prospectus for offering expenses, and the effective tax rate and
stock benefit plan assumptions (summarized in Exhibits IV-7 and IV-8). We have
utilized the reinvestment rate set forth in the prospectus, the one year T-Bill
rate as of March 31, 1998 of 5.39 percent. With regard to the employee stock
ownership plan and stock reward plans, we have performed the valuation assuming
the ESOP purchases an amount equal to 8.0 percent of the offering (15 year
amortization) and the PRRP acquires 4.0 percent of the offering. We also took
into account that concurrent with the conversion, Cortland will contribute
authorized but unissued shares equal to two percent of the shares issued in the
conversion to a charitable foundation. 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 emphasis on the following:
o P/E Approach. The P/E approach is generally the best indicator of
long-term value for a stock. Since the Bank and the Peer Group
reported pro forma core profitability, the P/E approach was heavily
considered in this valuation. In applying this approach, we took
into account primarily estimated core earnings.
o P/B Approach. P/B ratios have generally served as a useful benchmark
in the valuation of savings institution stocks, with the greater
determinant of long term value being earnings. We have also modified
the P/B approach to exclude the impact of intangible assets (i.e.,
price/tangible book value or "P/TB"). RP Financial considered the
P/TB approach to be a reliable indicator of value given current
market conditions, particularly the market for new conversions,
which often exhibit a willingness to pay premium P/E multiples in
the expectation that such institutions will implement leveraging
strategies to promote earnings growth. At the
RP Financial, LC.
Page 4.19
same time, with lower ROE ratios, new conversions are typically
discounted on a book value basis relative to the market at least
until there is partial realization of leveraging strategies.
o P/A Approach. P/A ratios are generally a less reliable indicator of
market value, as investors do not place exclusive weight simply on
the size of total assets as a determinant of market value.
Furthermore, this approach does not take into account the amount of
stock purchases funded by deposit withdrawals, thus understating the
pro forma P/A ratio. Investors place significantly greater weight on
book value and earnings -- which have received greater weight in our
valuation analysis. At the same time, the P/A ratio is an indicator
of franchise value and, in the case of a highly capitalized
institution, a high P/A ratio limits the investment community's
willingness to pay average market multiples for earnings and book
value when ROE is low.
The Bank intends to adopt Statement of Position ("SOP" 93-6), which will
cause earnings per share computations to be based on shares issued and
outstanding excluding shares owned by an ESOP where there is not a commitment to
release such shares. For the purpose of preparing the pro forma pricing tables
and exhibits, we have reflected all shares issued in the offering including
shares purchased by the ESOP as outstanding to capture the full dilutive impact
of such stock to the Bank's shareholders. However, we have considered the impact
of adoption of SOP 93-6 on the Bank in the determination of the Bank's pro forma
value.
Based on the application of the three valuation approaches, taking into
consideration the valuation adjustments discussed above, and placing the
greatest weight on the P/TB and P/E approaches, followed by the P/A approach, RP
Financial concluded that the pro forma market value of the Bank's conversion
stock is $62,475,000 at the midpoint at this time.
1. Price-to-Tangible Book ("P/TB"). The application of the P/TB valuation
method requires calculating the Bank's pro forma market value by applying a
valuation P/TB ratio to Cortland's pro forma tangible book value. Based on the
$62,475,000 midpoint valuation, Cortland's pro forma P/TB ratio was 74.49
percent. In comparison to the average P/TB ratio for the Peer Group of 131.68
percent, Cortland's valuation reflected a discount of 43.4 percent. RP Financial
considered a discount under the P/TB approach to be reasonable in light of the
valuation adjustments discussed previously. Given the historically high P/TB
pricing for thrifts in today's market, a valuation discount under the P/TB
approach could only be expected and is consistent with the aftermarket trading
of new conversion issues.
2. 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 times 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. Cortland reported net income of $154,000 for the twelve months ended
March 31, 1998, which included net non-operating items such as substantial
amounts of loan loss provisions,
RP Financial, LC.
Page 4.20
other non-operating expense in the form of expenses on REO, and non-operating
income consisting of minor levels of gains on the sale of securities and a
recovery on the Nationar investment. Excluding these various non-operating items
and normalizing the loan loss provisions to match the Bank's 1998 budgeted
figure of $300,000 annually, the Bank's core earnings were calculated to equal
the following (Note: the adjustments applied to the Peer Group's earnings in the
calculation of core earnings are shown in Exhibit IV-9):
Est. Core
Earnings
--------
($000)
Net Int. Margin, (12 Mths Ended 3/31/98) $ 9,287
Less: Loan Loss Provisions @$300,000 Annualized (300)
Plus: Other Operating Income (12 Mths Ended 3/31/98) 825
Less: Operating Expense (12 Mths Ended 3/31/98) (6,321)
------
Adjusted Income Before Taxes $ 3,491
Taxes @ 39% (1,361)
------
Estimated Core Earnings $ 2,130
Based on Cortland's trailing twelve month adjusted earnings, and
incorporating the impact of the pro forma assumptions previously discussed, the
Bank's pro forma core P/E multiple at the $62,475,000 midpoint value equaled
18.75 times. Comparatively, the Peer Group posted an average core P/E multiple
of 22.48 times, which indicates a discount of 16.6 percent in the Bank's pro
forma earnings multiple at the midpoint. At the supermaximum of the valuation
range, the Bank's core P/E multiple equaled 22.12 times, an indicated discount
of 1.6 percent. In reaching the valuation conclusion, we also evaluated the
Bank's price/earnings multiple on the basis of projected earnings as reflected
in the business plan.
3. Price-to-Assets ("P/A"). The P/A valuation methodology determines
market value by applying a valuation P/A ratio 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, Cortland's value equaled 21.93 percent of pro forma
assets. Comparatively, the Peer Group companies exhibited an average P/A ratio
of 23.87 percent, which implies an 8.1 percent discount being applied to the
Bank's pro forma P/A ratio.
Comparison to Recent Conversions
As indicated at the beginning of this chapter, RP Financial's analysis of
recent conversion pricing characteristics at conversion (excluding second step
conversions) and in the aftermarket has been limited to a "technical" analysis
and, thus, the pricing characteristics of recent conversions is not the primary
determinate of
RP Financial, LC.
Page 4.21
value herein. Particular focus was placed on the P/B approach in this analysis
since the P/E multiples do not reflect the actual impact of reinvestment and the
source of conversion funds (i.e., external funds vs. deposit withdrawals). The
recent conversions on average closed their offerings at their supermaximum
levels given the oversubscribed nature of their offerings and prevailing market
conditions at closing, indicating an average price/tangible book ratio of 79.0
percent. On average, the prices of recent conversions appreciated by 56 percent
following the first week of trading. In comparison, the Bank's P/TB ratio at the
appraised midpoint reflects only a moderate discount relative to the closing
ratios and a larger discount to the aftermarket ratios. The closing and
aftermarket P/TB ratios are not directly comparable in that the closing ratio
reflects the pro forma impact of conversion on equity whereas the aftermarket
ratio reflects only price (with no further impact on equity capital).
Valuation Conclusion
Based on the foregoing, it is our opinion that, as of June 5, 1998, the
aggregate pro forma market value of the Bank was $62,475,000 at the midpoint,
equal to 6,247,500 shares offered at $10.00 per share. Pursuant to the
conversion guidelines, the 15 percent offering range includes a minimum of
$53,103,750 and a maximum of $71,846,250. Based on the $10.00 per share offering
price, this valuation range equates to an offering of 5,310,375 shares at the
minimum to 7,184,625 shares at the maximum. The Holding Company's offering also
includes a provision for a super maximum, which would result in an offering size
of $82,623,190, equal to 8,262,319 shares at the $10.00 per share offering
price.
Based on this valuation range, incorporating the 2 percent shares issued
to the Foundation following consummation of the offering, the offering range is
as follows: $52,062,500 at the minimum, $61,250,000 at the midpoint, $70,437,500
at the maximum and $81,003,125 at the supermaximum. Based on a $10.00 per share
offering price, the number of offering shares is as follows: 5,206,250 at the
minimum, 6,125,000 at the midpoint, 7,043,750 at the maximum and 8,100,313 at
the supermaximum.
The comparative pro forma valuation ratios relative to the Peer Group are
shown in Table 4.4, and the key valuation assumptions are detailed in Exhibit
IV-7. The pro forma calculations for the range are detailed in Exhibit IV-8.
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.4
Public Market Pricing
Cortland SB of Cortland NY and the Comparables
As of June 5, 1998
Market
Capitalization Per Share Data Pricing Ratios(3)
------------------------------- ---------------------------------------
Core Book
Price/ Market 12-Mth Value/
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
------- ------- ------- ------- ------- ------- ------- ------- -------
($) ($Mil) ($) ($) (X) (%) (%) (%) (X)
Cortland SB of Cortland NY
- --------------------------
Superrange 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Range Maximum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Range Midpoint 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Range Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
BIF-Insured Thrifts(7)
- ----------------------
Averages 24.92 628.84 1.21 13.40 18.56 193.05 20.50 191.24 19.53
Medians --- --- --- --- 16.65 189.11 18.49 195.98 18.52
All Non-MHC State of NY(7)
- --------------------------
Averages 27.76 604.99 1.19 16.56 21.46 161.11 21.52 169.65 22.15
Medians --- --- --- --- 21.04 151.26 18.49 152.14 22.24
Comparable Group Averages
- -------------------------
Averages 19.75 44.15 0.79 14.99 21.98 131.31 23.87 131.68 22.48
Medians --- --- --- --- 21.79 126.56 26.60 126.56 22.53
State of NY
- -----------
AFED AFSALA Bancorp, Inc. of NY(7) 19.75 27.22 0.89 14.58 22.19 135.46 16.97 135.46 22.19
ALBK ALBANK Fin. Corp. of Albany NY 52.38 673.24 3.38 28.54 15.32 183.53 16.46 234.68 15.50
ALBC Albion Banc Corp. of Albion NY 9.50 7.14 0.43 8.28 21.11 114.73 9.80 114.73 22.09
AHCI Ambanc Holding Co., Inc. of NY 18.63 79.33 0.48 14.27 NM 130.55 15.26 130.55 NM
ASFC Astoria Financial Corp. of NY 54.31 1431.94 2.52 32.88 19.82 165.18 13.14 233.39 21.55
CNY Carver Bancorp, Inc. of NY 13.31 30.80 0.03 15.24 NM 87.34 7.41 90.79 NM
CATB Catskill Fin. Corp. of NY 17.38 77.53 0.85 15.54 20.21 111.84 26.20 111.84 20.45
DME Dime Bancorp, Inc. of NY 30.13 3442.59 1.03 11.37 23.54 265.00 15.63 323.63 29.25
DIME Dime Community Bancorp of NY 29.00 360.76 0.89 15.22 NM 190.54 22.87 219.03 NM
ESBK Elmira Svgs Bank (The) of NY 29.25 21.26 1.47 19.63 21.04 149.01 9.26 149.01 19.90
FIBC Financial Bancorp, Inc. of NY 27.50 46.94 1.58 16.43 16.98 167.38 15.12 168.09 17.41
FFIC Flushing Fin. Corp. of NY 26.50 207.44 1.14 17.52 23.45 151.26 19.23 157.27 23.25
GOSB GSB Financial Corp. of NY 17.13 38.51 0.37 14.88 NM 115.12 32.40 115.12 NM
GPT GreenPoint Fin. Corp. of NY 40.94 3458.16 1.74 15.15 24.37 270.23 26.14 NM 23.53
HAVN Haven Bancorp of Woodhaven NY 26.88 237.51 1.11 12.91 24.00 208.21 11.77 208.70 24.22
ICBC Independence Comm Bnk Cp of NY 16.81 1183.61 0.49 12.55 NM 133.94 29.07 143.06 NM
JSB JSB Financial, Inc. of NY 58.44 577.56 2.64 35.96 19.68 162.51 37.72 162.51 22.14
LISB Long Island Bancorp, Inc of NY(7) 61.50 1471.94 1.77 23.55 28.08 261.15 23.38 263.38 NM
PEEK Peekskill Fin. Corp. of NY 18.00 54.31 0.65 14.92 28.57 120.64 27.73 120.64 27.69
PSBK Progressive Bank, Inc. of NY(7) 42.00 161.95 2.23 20.68 18.92 203.09 18.07 222.58 18.83
QCSB Queens County Bancorp of NY 44.44 663.13 1.48 11.36 29.63 NM 40.87 NM NM
RELY Reliance Bancorp, Inc. of NY 39.25 377.90 2.04 20.13 20.34 194.98 17.34 282.58 19.24
RCBK Richmond County Fin Corp of NY 18.50 488.84 0.74 12.21 NM 151.52 33.39 152.14 25.00
RSLN Roslyn Bancorp, Inc. of NY 22.13 947.65 0.99 14.51 21.49 152.52 25.57 153.25 22.35
Dividends(4) Financial Characteristics(6)
----------------------- -------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ _______________ _______________
Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
Cortland SB of Cortland NY
- --------------------------
Superrange 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00
Range Maximum 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00
Range Midpoint 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00
Range Minimum 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0.00 0.00
BIF-Insured Thrifts(7)
- ----------------------
Averages 0.40 1.53 31.00 3,341 11.56 0.64 1.05 10.76 1.01 10.16
Medians --- --- --- --- --- --- --- --- --- ---
All Non-MHC State of NY(7)
- --------------------------
Averages 0.42 1.34 31.22 2,942 13.83 0.79 0.85 7.29 0.91 7.55
Medians --- --- --- --- --- --- --- --- --- ---
Comparable Group Averages
- -------------------------
Averages 0.28 1.43 36.11 215 18.43 0.71 0.88 5.25 0.91 5.28
Medians --- --- --- --- --- --- --- --- --- ---
State of NY
- -----------
AFED AFSALA Bancorp, Inc. of NY(7) 0.28 1.42 31.46 160 12.52 0.37 0.78 5.89 0.78 5.89
ALBK ALBANK Fin. Corp. of Albany NY 0.84 1.60 24.85 4,089 8.97 0.92 1.16 12.76 1.14 12.61
ALBC Albion Banc Corp. of Albion NY 0.12 1.26 27.91 73 8.54 0.55 0.48 5.58 0.46 5.33
AHCI Ambanc Holding Co., Inc. of NY 0.24 1.29 50.00 520 11.69 0.62 0.51 4.18 0.41 3.34
ASFC Astoria Financial Corp. of NY 0.80 1.47 31.75 10,895 7.96 0.54 0.81 10.29 0.74 9.46
CNY Carver Bancorp, Inc. of NY 0.00 0.00 0.00 416 8.48 NA -0.11 -1.33 0.02 0.20
CATB Catskill Fin. Corp. of NY 0.32 1.84 37.65 296 23.42 0.29 1.33 5.36 1.32 5.30
DME Dime Bancorp, Inc. of NY 0.20 0.66 19.42 22,024 5.90 1.03 0.72 12.65 0.58 10.18
DIME Dime Community Bancorp of NY 0.36 1.24 40.45 1,577 12.01 0.48 0.83 6.19 0.79 5.86
ESBK Elmira Svgs Bank (The) of NY 0.64 2.19 43.54 230 6.21 0.68 0.44 7.04 0.47 7.45
FIBC Financial Bancorp, Inc. of NY 0.50 1.82 31.65 310 9.04 2.19 0.94 10.24 0.92 9.99
FFIC Flushing Fin. Corp. of NY 0.32 1.21 28.07 1,078 12.72 0.31 0.92 6.57 0.93 6.63
GOSB GSB Financial Corp. of NY 0.00 0.00 0.00 119 28.14 0.10 0.73 3.54 0.69 3.36
GPT GreenPoint Fin. Corp. of NY 0.64 1.56 36.78 13,228 9.67 2.73 1.08 10.71 1.11 11.10
HAVN Haven Bancorp of Woodhaven NY 0.30 1.12 27.03 2,018 5.65 0.57 0.53 9.11 0.53 9.03
ICBC Independence Comm Bnk Cp of NY 0.00 0.00 0.00 4,072 21.70 0.70 0.64 2.95 0.85 3.90
JSB JSB Financial, Inc. of NY 1.60 2.74 60.61 1,531 23.21 NA 1.92 8.59 1.71 7.64
LISB Long Island Bancorp, Inc of NY(7) 0.60 0.98 33.90 6,296 8.95 0.86 0.87 9.63 0.71 7.78
PEEK Peekskill Fin. Corp. of NY 0.36 2.00 55.38 196 22.99 0.89 1.03 4.09 1.06 4.22
PSBK Progressive Bank, Inc. of NY(7) 0.80 1.90 35.87 896 8.90 0.76 0.97 11.15 0.97 11.20
QCSB Queens County Bancorp of NY 1.00 2.25 67.57 1,622 10.45 0.55 1.47 12.54 1.45 12.37
RELY Reliance Bancorp, Inc. of NY 0.72 1.83 35.29 2,180 8.89 NA 0.90 10.66 0.95 11.27
RCBK Richmond County Fin Corp of NY 0.20 1.08 27.03 1,464 22.04 0.47 0.19 1.11 1.53 9.09
RSLN Roslyn Bancorp, Inc. of NY 0.34 1.54 34.34 3,706 16.76 0.25 1.31 7.08 1.26 6.81
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.4
Public Market Pricing
Cortland SB of Cortland NY and the Comparables
As of June 5, 1998
Market
Capitalization Per Share Data Pricing Ratios(3)
--------------- -------------- ---------------------------------------
Core Book
Price/ Market 12-Mth Value/
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
------- ------- ------- ------- ------- ------- ------- ------- -------
($) ($Mil) ($) ($) (X) (%) (%) (%) (X)
SFED SFS Bancorp of Schenectady NY 22.00 26.58 0.89 17.95 23.91 122.56 15.15 122.56 24.72
SKAN Skaneateles Bancorp Inc of NY 17.50 25.20 1.09 12.48 15.63 140.22 9.78 143.91 16.06
SIB Staten Island Bancorp of NY 21.44 967.59 0.79 15.51 NM 138.23 36.22 141.89 27.14
ROSE T R Financial Corp. of NY 42.25 740.64 1.85 14.05 20.22 300.71 18.49 300.71 22.84
TPNZ Tappan Zee Fin., Inc. of NY(7) 20.13 29.75 0.67 14.56 28.76 138.26 23.52 138.26 NM
WSBI Warwick Community Bncrp of NY 16.88 111.53 0.55 12.60 NM 133.97 31.84 133.97 NM
YFCB Yonkers Fin. Corp. of NY 18.94 57.12 1.01 14.90 18.39 127.11 17.22 127.11 18.75
Comparable Group
- ----------------
AHCI Ambanc Holding Co., Inc. of NY 18.63 79.33 0.48 14.27 NM 130.55 15.26 130.55 NM
CATB Catskill Fin. Corp. of NY 17.38 77.53 0.85 15.54 20.21 111.84 26.20 111.84 20.45
DCBI Delphos Citizens Bancorp of OH 20.50 39.03 0.91 14.76 22.53 138.89 34.66 138.89 22.53
ESBK Elmira Svgs Bank (The) of NY 29.25 21.26 1.47 19.63 21.04 149.01 9.26 149.01 19.90
GOSB GSB Financial Corp. of NY 17.13 38.51 0.37 14.88 NM 115.12 32.40 115.12 NM
PEEK Peekskill Fin. Corp. of NY 18.00 54.31 0.65 14.92 28.57 120.64 27.73 120.64 27.69
PSFC Peoples Sidney Fin. Corp of OH 24.38 43.52 0.71 14.87 NM 163.95 41.24 163.95 NM
SFED SFS Bancorp of Schenectady NY 22.00 26.58 0.89 17.95 23.91 122.56 15.15 122.56 24.72
SKAN Skaneateles Bancorp Inc of NY 17.50 25.20 1.09 12.48 15.63 140.22 9.78 143.91 16.06
WEHO Westwood Hmstd Fin Corp of OH 12.75 36.25 0.49 10.60 NM 120.28 27.00 120.28 26.02
Dividends(4) Financial Characteristics(6)
----------------------- -------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ --------------- --------------
Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
------- ------- ------- ------- ------- ------- ------- ------- ------- ------
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
SFED SFS Bancorp of Schenectady NY 0.32 1.45 35.96 175 12.36 0.72 0.64 5.13 0.62 4.96
SKAN Skaneateles Bancorp Inc of NY 0.28 1.60 25.69 258 6.98 2.01 0.64 9.32 0.63 9.07
SIB Staten Island Bancorp of NY 0.28 1.31 35.44 2,671 26.20 0.85 0.86 5.00 1.59 9.19
ROSE T R Financial Corp. of NY 0.72 1.70 38.92 4,006 6.15 0.57 0.99 15.97 0.88 14.13
TPNZ Tappan Zee Fin., Inc. of NY(7) 0.28 1.39 41.79 126 17.02 1.24 0.84 4.86 0.81 4.65
WSBI Warwick Community Bncrp of NY 0.00 0.00 0.00 350 23.76 0.52 1.04 4.37 1.04 4.37
YFCB Yonkers Fin. Corp. of NY 0.28 1.48 27.72 332 13.54 0.41 1.05 7.10 1.03 6.96
Comparable Group
- ----------------
AHCI Ambanc Holding Co., Inc. of NY 0.24 1.29 50.00 520 11.69 0.62 0.51 4.18 0.41 3.34
CATB Catskill Fin. Corp. of NY 0.32 1.84 37.65 296 23.42 0.29 1.33 5.36 1.32 5.30
DCBI Delphos Citizens Bancorp of OH 0.00 0.00 0.00 113 24.95 0.56 1.60 5.91 1.60 5.91
ESBK Elmira Svgs Bank (The) of NY 0.64 2.19 43.54 230 6.21 0.68 0.44 7.04 0.47 7.45
GOSB GSB Financial Corp. of NY 0.00 0.00 0.00 119 28.14 0.10 0.73 3.54 0.69 3.36
PEEK Peekskill Fin. Corp. of NY 0.36 2.00 55.38 196 22.99 0.89 1.03 4.09 1.06 4.22
PSFC Peoples Sidney Fin. Corp of OH 0.28 1.15 39.44 106 25.15 1.10 1.24 5.56 1.24 5.56
SFED SFS Bancorp of Schenectady NY 0.32 1.45 35.96 175 12.36 0.72 0.64 5.13 0.62 4.96
SKAN Skaneateles Bancorp Inc of NY 0.28 1.60 25.69 258 6.98 2.01 0.64 9.32 0.63 9.07
WEHO Westwood Hmstd Fin Corp of OH 0.36 2.82 73.47 134 22.45 0.12 0.67 2.33 1.05 3.68
(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 Locations
I-2 Cortland'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 New York Savings Institutions
III-3 Selected Ohio Savings Institutions
LIST OF EXHIBITS (continued)
IV-1 Stock Prices: June 5, 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
IV-8 Pro Forma Effect of Conversion Proceeds
IV-9 Peer Group Core Earnings Analysis
V-1 Firm Qualifications Statement
EXHIBIT I-1
Cortland Savings Bank
Map of Office Locations
===================
County-Town
NEW YORK
(UPPER)
===================
Explanation of Symbols
====================================================
* State Capital [Illegible] MSA Boundary
Newton County Seat 256 MSA Number
Population Key
====================================================
o Under 250 o 20,000-24,999
o 250-499 o 25,000-49,999
o 500-999 o 50,000-99,999
o 1,000-2,499 o 100,000-249,999
o 2,500-4,999 o 250,000-999,999
o 5,000-9,999
o 10,000-19,999
[Map of Upstate New York State depicting office locations of Cortland Savings
Bank omitted]
[Map inset of Schenectady/Albany area omitted]
[Map inset of Buffalo area omitted]
EXHIBIT I-2
Cortland Savings Bank
Audited Financial Statements
[Incorporated by Reference]
EXHIBIT I-3
Cortland Savings Bank
Key Operating Ratios
At or for the
Three Months
Ended March 31, At or for the Year Ended December 31,
----------------- ---------------------------------------------------------
1998 1997 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ---- ----
Performance Ratios:
Return on average assets (net income
to average total assets) ............. 0.86% 0.71% 0.03% 0.58% 0.82% 0.92% 1.03%
Return on average net worth equity
(net income to average equity) ....... 6.54% 5.53% 0.23% 4.64% 6.85% 8.41% 10.16%
Average interest-earning assets to
average interest-bearing liabilities . 115.34% 114.97% 115.80% 113.90% 112.17% 111.39% 109.31%
Net interest rate spread(5) ............. 3.70% 3.71% 3.58% 3.48% 3.70% 3.62% 4.41%
Net interest margin(6) .................. 4.27% 4.27% 4.17% 4.02% 4.18% 4.03% 4.84%
Net interest income after provision for
loan losses to total other expenses .. 1.35x 1.31x 0.88x 1.23x 1.45x 1.55x 1.47x
Capital and Asset Quality Ratios:
Average net worth to average total assets 13.16% 12.78% 13.04% 12.40% 12.00% 10.96% 10.15%
Total net worth to assets end of period . 13.51% 12.96% 13.15% 12.74% 12.32% 11.67% 10.60%
Non-performing assets to total assets ... 0.96% 2.13% 2.04% 1.78% 1.00% 1.32% 1.40%
Non-performing loans to total loans ..... 0.94% 2.84% 2.37% 2.28% 1.24% 1.60% 2.22%
Allowance for loan losses to total loans 1.43% 1.30% 1.34% 1.22% 1.25% 1.14% 1.12%
Allowance for loan losses to
non-performing loans ................. 106.62% 45.73% 49.38% 47.93% 55.75% 55.97% 41.84%
Other Data:
Number of real estate loans outstanding . 2,953 3,033 3,029 3,104 3,169 2,936 2,882
Number of deposit accounts .............. 33,548 34,031 34,069 34,213 34,710 NA NA
Full service offices .................... 3 3 3 3 3 3 2
(1) Shown net of deferred fees and the allowance for loan losses.
(2) In December 1995, the Bank transferred securities classified as
held-to-maturity with a fair value of $31,153,000 to available-for-sale.
(3) Includes the cumulative effect of changes in accounting for post-retirement
benefits other than pensions and changes in accounting for income taxes.
(4) Asset quality and capital ratios are at end of period. All average balances
are daily average balances except for 1995 and prior, for which monthly average
balances are used because daily average balances are unavailable. Ratios for the
three-month periods have been annualized where appropriate.
(5) The 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.
(6) The net interest margin, also known as the net yield on average interest-
earning assets, represents net interest income as a percentage of average
interest-earning assets.
NA The information is not available.
EXHIBIT I-4
Cortland Savings Bank
Investment Portfolio Composition
At March 31, At December 31,
------------ ---------------
1998 1997 1996 1995
---- ---- ---- ----
Amortized Fair Amortized Fair Amortized Fair Amortized Fair
Cost Value Cost Value Cost Value Cost Value
------- ------- ------- ------- ------- ------- ------- -------
(In thousands)
Securities Available-for-sale:
U.S. Treasury securities ........ $12,048 $12,137 $15,045 $15,141 $14,497 $14,550 $ 3,053 $ 3,068
U.S. Government agencies ........ 4,495 4,485 996 1,005 4,988 4,993 5,502 5,542
Corporate debt obligations ...... 14,485 14,512 13,819 13,861 13,233 13,252 24,545 24,679
Mortgage-backed securities ...... 11,886 11,981 12,144 12,211 11,833 11,722 7,764 7,752
------- ------- ------- ------- ------- ------- ------- -------
Total debt securities ......... 42,914 43,115 42,004 42,218 44,551 44,517 40,864 41,041
Equity securities ............... 1,340 2,360 1,192 1,922 628 1,077 418 736
------- ------- ------- ------- ------- ------- ------- -------
Total Available-for-sale ...... 44,254 45,475 43,196 44,140 45,179 45,594 41,282 41,777
------- ------- ------- ------- ------- ------- ------- -------
Securities Held-to-maturity:
U.S. Government agencies ........ 2,001 1,997 1,992 1,995 -- -- -- --
Corporate debt obligations ...... 2,359 2,376 1,854 1,870 -- -- -- --
State and municipal sub-divisions 284 288 425 430 858 867 1,472 1,501
Mortgage-backed securities ...... 7,835 7,828 8,279 8,274 10,899 10,766 9,716 9,794
------- ------- ------- ------- ------- ------- ------- -------
Total held-to-maturity ........ 12,479 12,489 12,550 12,569 11,757 11,633 11,188 11,295
------- ------- ------- ------- ------- ------- ------- -------
Total Securities .............. $56,733 $57,964 $55,746 $56,709 $56,936 $57,227 $52,470 $53,072
======= ======= ======= ======= ======= ======= ======= =======
EXHIBIT I-5
Cortland Savings Bank
Yields and Costs
For the Three Months Ended March 31,
-------------------------------------------------------------
At March 3l, 1998 1998(6) 1997(6)
----------------- --------------------------- ------------------------------
(Dollars in thousands)
Average Average Average
Yield/ Average Yield/ Average Yield/
Balance Cost Balance Interest Cost Balance Interest Cost
-------- -------- ------ ---- -------- ------ ----
(Dollars in thousands)
Assets:
Loans(1) $154,200 $157,134 $3,377 8.72% $158,434 $3,433 8.79%
-------- -------- ------ ---- -------- ------ ----
Securities(2) 58,038 54,852 848 6.27 58,393 898 6.24
Other short-term investments 6,791 6,645 86 5.25 6,769 86 5.15
-------- -------- ------ -------- ------
Total interest-earning assets 219,029 218,631 4,311 8.00 223,596 4,417 8.01
Non-interest-earning assets 13,359 13,553 11,740
------ ------ ------
Total assets 232,388 232,184 235,336
======= ======= =======
Liabilities:
Passbook, statement savings and
club accounts(3) 64,326 63,748 474 3.02 63,621 467 2.98
Savings certificates 107,854 108,067 1,439 5.40 112,578 1,494 5.38
Money market accounts 8,314 8,385 57 2.76 8,985 63 2.84
NOW accounts 9,280 9,357 40 1.73 9,298 40 1.74
Total interest-bearing liabilities 189,774 189,557 2,010 4.30 194,482 2,064 4.30
Non-interest-bearing liabilities 11,220 12,076 10,772
------ ------ ------
Total liabilities 200,994 201,633 205,254
Net worth 31,394 30,551 30,082
------ ------ ------
Total liabilities and net worth 232,388 232,184 235,336
======= ======= =======
Net interest income/spread(4) 0.00% $2,301 3.70% $2,353 3.71%
===== ====== ===== ====== =====
Net earning assets/net interest margin(5) $ 29,255 NA $ 29,074 -- 4.27% $ 29,114 4.27%
======== ======== ===== ======== =====
Ratio of average interest-earning assets
to average interest-bearing liabilities l.15x l.15x l.l5x
===== ===== =====
Notes appear on following page.
EXHIBIT I-5
Cortland Savings Bank
Yields and Costs
----------------------------------------------------------------------------------------
December 31,
----------------------------------------------------------------------------------------
1997 1996 1995
---------------------------- --------------------------- ---------------------------
(Dollars in thousands)
Average Average Average
Average Yield/ Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost Balance Interest Cost
-------- -------- ---- -------- -------- ---- -------- -------- ----
Assets:
Loans(1) $157,713 $ 13,582 8.61% $158,779 $ 13,805 8.69% $157,317 $ 14,012 8.91%
Securities(2) 60,226 3,769 6.26 58,557 3,620 6.18 56,235 3,404 6.05
Other short-term investments 6,019 316 5.25 7,300 362 4.96 6,580 395 6.00
-------- -------- -------- -------- -------- --------
Total interest-earning assets 223,958 17,667 7.89 224,636 17,787 7.92 220,132 17,811 8.09
-------- -------- --------
Non-interest-earning assets 12,254 12,442 14,077
-------- -------- --------
Total assets $236,212 $237,078 $234,209
======== ======== ========
Liabilities:
Passbook, statement savings and
club accounts(3) 64,576 1,936 3.00 64,405 1,922 2.98 66,384 1,991 3.00
Savings certificates 110,728 5,983 5.40 113,890 6,354 5.58 108,614 6,005 5.53
Money market accounts 8,643 243 2.81 9,635 288 2.99 11,242 339 3.02
NOW accounts 9,457 166 1.76 9,295 194 2.09 9,134 227 2.49
Other borrowings -- -- -- -- -- -- 875 51 5.83
-------- -------- -------- -------- -------- --------
Total interest-bearing liabilities 193,404 8,328 4.31 197,225 8,758 4.44 196,249 8,613 4.39
Non-interest-bearing liabilities 12,003 10,464 9,864
-------- -------- --------
Total liabilities 205,407 207,689 206,113
Net worth 30,806 29,389 28,095
-------- -------- --------
Total liabilities and net worth $236,213 $237,078 $234,208
======== ======== ========
Net interest income/spread(4) $ 9,339 3.58% $ 9,029 3.48% $ 9,198 3.70%
======== ===== ======== ===== ======== =====
Net earning assets/net interest margin(5) $ 30,554 4.17% $ 27,411 4.02% $ 23,883 4.18%
======== ===== ======== ===== ======== =====
Ratio of average interest-earning assets
to average interest-bearing liabilities 1.16x 1.14x 1.12x
======= ======= =======
(1) Average balances include loans held for sale and non-accrual loans,
net of the allowance for loan losses. Interest is recognized on
non-accrual loans only as and when received.
(2) Securities are included at amortized cost, with net unrealized gains
or losses on securities available-for-sale included as a component of
non-earning assets. Securities include FHLBNY stock.
(3) Includes advance payments by borrowers for taxes and insurance
(mortgage escrow deposits).
(4) The spread represents the difference between the weighted average
yield on interest-earning assets and the weighted average cost of
interest-bearing liabilities.
(5) The net interest margin, also known as the net yield on average
interest-earning assets, represents net interest income as a percentage of
average interest-earning assets.
(6) Yields and related ratios for the three month periods have been
annualized when appropriate.
EXHIBIT I-6
Cortland Savings Bank
Loan Loss Allowance Activity
Three months ended
March 31, Year ended December 31,
--------- ------------------------------------------------------
1998 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ----
(Dollars in thousands)
Allowance for loan losses, beginning
of period............................. $2,143 $1,952 $2,002 $1,752 $1,620 $1,223
Provision for loan losses............... 75 3,300 1,380 600 300 550
------ ------ ------ ------ ------ -------
Charge-offs:
Real estate........................... - 2,484 264 478 110 25
Commercial............................ 23 395 898 31 21 48
Other................................. 16 400 551 96 137 205
------ ------ ------ ------ ------ ------
Total charge-offs................... 39 3,279 1,713 605 268 278
Recoveries:
Real estate........................... 23 9 24 161 - -
Commercial............................ 9 61 190 - - -
Other................................. 19 100 69 94 100 125
------ ------ ------ ------ ------ ------
Total recoveries.................... 51 170 283 255 100 125
Net charge-offs (recoveries)............ (12) 3,109 1,430 350 168 153
------ ------ ------ ------ ------ ------
Allowance for loan losses, end
of period............................. $2,230 $2,143 $1,952 $2,002 $1,752 $1,620
====== ====== ====== ====== ====== ======
Allowance for loan losses as a
percent of total loans................ 1.43% 1.34% 1.22% 1.25% 1.14% 1.12%
Allowance for loan losses as a
percent of non-performing loans....... 151.91% 56.48% 53.23% 100.40% 71.13% 50.50%
Ratio of net charge-offs
(recoveries)
to average loans outstanding.......... (0.01%) 1.97% 0.90% 0.22% 0.12% 0.13%
EXHIBIT I-7
Cortland Savings Bank
Fixed Rate and Adjustable Rate Loans
At December 31,
-----------------------------------------------------------------------
At March 31, 1998 1997 1996 1995 1994
----------------- ---- ---- ---- ----
Percent Percent Percent Percent Percent
Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total
------ -------- ------ -------- ------ -------- ------ -------- ------ --------
(Dollars in thousands)
Fixed-rate loans:
Real estate loans:
Residential................. $ 62,475 39.89% 59,048 37.42% 49,879 31.00 48,292 30.01% 47,433 30.68%
Construction................ 264 0.17 316 0.20 528 0.33 155 0.10 1,065 0.69
Commercial mortgages........ 27,681 17.67 28,077 17.79 31,281 19.44 31,177 19.38 28,370 18.35
-------- ----- ------ ----- ------ ----- ------ ----- ------ ----
Total real estate loans... 90,420 57.73 87,441 55.41 81,688 50.77 79,624 49.49 76,868 49.72
Other loans................... 19,107 12.20 19,167 12.15 17,716 11.01 16,627 10.33 14,719 9.52
-------- ----- ------ ----- ------ ----- ------ ----- ------ ----
Total fixed-rate loans..... 109,527 69.92 106,608 67.56 99,404 61.78 96,251 59.82 91,587 59.24
Adjustable-rate loans:
Real estate loans:
Residential................. 34,692 22.15 38,255 24.24 46,218 28.73 47,562 29.56 45,509 29.44
Home equity................. 6,139 3.92 5,924 3.75 5,882 3.65 6,344 3.94 7,085 4.57
Commercial mortgages........ 2,879 1.83 2,790 1.77 3,838 2.39 3,988 2.48 4,386 2.84
-------- ----- ------ ----- ------ ----- ------ ----- ------ ----
Total real estate loans... 43,710 27.91 46,969 29.76 55,938 34.77 57,894 35.98 56,980 36.85
Other loans................... 3,398 2.17 4,229 2.68 5,554 3.45 6,743 4.20 6,039 3.91
------- ----- ------ ----- ------ ----- ------ ----- ------ ----
Total adjustable-rate loans. 47,108 30.08 51,198 32.44 61,492 38.22 64,637 40.18 63,019 40.76
Total loans............... 156,635 100.00% 157,806 100.00% 160,896 100.00% 160,888 100.00% 154,606 100.00%
-------- ====== ------- ====== ------- ====== ------- ====== ------- ======
Less:
Deferred loan fees, net.... 205 241 333 379 378
Allowance for loan losses.. 2,230 2,143 1,952 2,002 1,752
-------- -------- -------- -------- --------
Total loans, net......... $154,200 $155,422 $158,611 $158,507 $152,476
======== ======== ======== ======== ========
At December 31,
-----------------
1993
----
Percent
Amount of Total
------ --------
Fixed-rate loans:
Real estate loans:
Residential................. 43,281 29.93%
Construction................ 534 0.37
Commercial mortgages........ 25,403 17.57
------ ------
Total real estate loans... 69,218 47.87
Other loans................... 12,749 8.82
------ ------
Total fixed-rate loans....... 81,967 56.69
Adjustable-rate loans:
Real estate loans:
Residential................. 44,761 30.96
Home equity................. 7,141 4.94
Commercial mortgages........ 4,592 3.18
------ ------
Total real estate loans..... 56,494 39.08
Other loans................... 6,122 4.23
------ ------
Total adjustable-rate loans.. 62,616 43.31
Total loans............... 144,583 100.00%
------- ======
Less:
Deferred loan fees, net...... 363
Allowance for loan losses.... 1,620
--------
Total loans, net......... $142,600
========
EXHIBIT I-8
Cortland Savings Bank
Gap Analysis
Amounts Estimated to Mature or Reprice Within:
-----------------------------------------------------------------------------------
Less than
Three 3-6 6 Months to 1-2 2-3 Over 3
Months Months 1 Year Years Years Years Total
------ ------ ------ ----- ----- ----- -----
(Dollars in thousands)
Interest-earning assets:
Securities $ 7,687 $ 4,068 $ 11,280 $ 17,393 $ 9,267 $ 8,343 $ 58,038
Loans 14,556 7,072 14,143 31,418 31,417 55,594 154,200
Other short-term investments 6,79l - - - - - 6,791
------- -------- -------- -------- ------- ------- --------
Total interest-earning assets 29,034 11,140 25,423 48,811 40,684 63,937 219,029
------- -------- -------- -------- ------- ------- --------
Interest-bearing liabilities:
Passbook, statement savings
and club accounts 3,870 5,160 6,450 5,160 3,870 39,853 64,363
Money market accounts 2,744 2,744 2,826 - - - 8,314
NOW accounts 556 742 928 742 557 5,755 9,280
Savings certificates 15,969 20,337 27,704 17,843 14,481 11,520 107,854
------- -------- -------- -------- ------- ------- --------
Total interest-bearing liabilities 23,139 28,983 37,908 23,745 18,908 57,128 189,811
------- -------- -------- -------- ------- ------- --------
Interest sensitivity gap $ 5,895 $(17,843) $(l2,485) $ 25,066 $ 21,776 $ 6,809 $ 29,218
======= ======== ======== ======== ======== ======= ========
Cumulative interest sensitivity gap $ 5,895 $(11,948) $(24,433) $ 633 $ 22,409 $29,218
======= ======== ======== ======== ======== =======
Ratio of cumulative gap to total
interest-earning assets 2.69% (5.45%) (1l.16%) 0.29% 10.23% 13.34%
======= ======== ======== ======== ======== =======
Ratio of cumulative gap to total assets 2.54% (5.14%) (10.51%) 0.27% 9.64% 12.57%
======= ======== ======== ======== ======== =======
Ratio of interest-earning assets to
interest-bearing liabilities 125.48% 38.44% 67.06% 205.56% 215.17% 111.92% 115.39%
======= ======== ======== ======== ======== ======= ========
EXHIBIT I-9
Cortland Savings Bank
Loan Portfolio Composition
At March 31, At December 31,
------------ --------------------------------------------------------------
1998 1997 1996 1995
---- ---- ---- ----
Percent Percent Percent Percent
Amount of Total Amount of Total Amount of Total Amount of Total
------ -------- ------ -------- ------ -------- ------ --------
(Dollars in thousands)
Real estate loans:
Residential ............... $ 97,167 62.03% 97,303 61.66% 96,097 59.73% 95,854 59.57%
Construction .............. 264 0.17% 316 0.20% 528 0.33% 155 0.10%
Home equity ............... 6,139 3.92% 5,924 3.75% 5,882 3.66% 6,344 3.94%
Commercial mortgages ...... 30,560 19.51% 30,867 19.56% 35,119 21.83% 35,165 21.86%
------ ----- ------ ----- ------ ----- ------ -----
Total real estate loans ... 134,130 85.63% 134,410 85.17% 137,626 85.55% 137,518 85.47%
Other loans:
Guaranteed student loans .. 1,708 1.09% 1,507 0.96% 1,552 0.96% 1,747 1.09%
Property improvement. loans 828 0.53% 907 0.57% 1,031 0.64% 916 0.57%
Automobile loans .......... 9,050 5.78% 8,902 5.64% 6,378 3.96% 5,510 3.42%
Other consumer loans ...... 4,391 2.80% 5,031 3.19% 6,289 3.91% 6,174 3.84%
Commercial loans .......... 6,528 4.17% 7,049 4.47% 8,020 4.98% 9,023 5.61%
----- ---- ----- ---- ----- ---- ----- ----
Total other loans ......... 22,505 14.37% 23,396 14.83% 23,270 14.45% 23,370 14.53%
Total loans ............... 156,635 100.00% 157,806 100.00% 160,896 100.00% 160,888 100.00%
------- ====== ------- ====== ------- ====== ------- ======
Less:
Deferred loan fees, net ... 205 241 333 379
Allowance for loan losses . 2,230 2,143 1,952 2,002
----- ----- ----- -----
Total loans, net ........ $ l54,200 155,422 158,611 158,507
======= ======= ======= =======
At December 31,
-------------------------------------------
1994 1993
---- ----
Percent Percent
Amount of Total Amount of Total
------ -------- ------ --------
(Dollars in thousands)
Real estate loans:
Residential ............... 92,942 60.12% 88,042 60.89%
Construction .............. 1,065 0.69% 534 0.37%
Home equity ............... 7,085 4.58% 7,141 4.94%
Commercial mortgages ...... 32,756 21.19% 29,995 20.75%
------ ----- ------ -----
Total real estate loans ... 133,848 86.58% 125,712 86.95%
Other loans:
Guaranteed student loans .. 1,960 1.27% 1,621 1.12%
Property improvement. loans 822 0.53% 824 0.57%
Automobile loans .......... 4,617 2.99% 3,775 2.61%
Other consumer loans ...... 5,993 3.88% 5,784 4.00%
Commercial loans .......... 7,366 4.75% 6,867 4.75%
----- ---- ----- ----
Total other loans ......... 20,758 13.42% 18,871 13.05%
Total loans ............... 154,606 100.00% 144,583 100.00%
------- ====== ------- ======
Less:
Deferred loan fees, net ... 378 363
Allowance for loan losses . 1,752 1,620
----- -----
Total loans, net ........ 152,476 142,600
======= =======
EXHIBIT I-10
Cortland Savings Bank
Contractual Maturity By Loan Type
Residential Home Commercial
Mortgage(1) Equity Mortgage Commercial Other loans Total
----------- ------ -------- ---------- ----------- -----
(In thousands)
Amounts due:
Within 3 months .... $ 18 $ -- $ 923 $ 1,490 $ 167 $ 2,598
3 months to one year 194 -- 3,050 1,678 1,339 6,261
l to 3 years ....... 762 -- 9,720 1,007 5,143 16,632
3 to 5 years ....... 3,402 -- 4,998 640 6,706 15,746
5 to l0 years ...... 14,868 -- 5,071 1,665 367 21,971
l0 to 20 years ..... 43,366 2,285 5,828 -- 1,674 53,153
Over 20 years ...... 34,821 3,854 970 48 581 40,274
-------- -------- -------- -------- -------- --------
Total loans ........ $ 97,431 $ 6,139 $ 30,560 $ 6,528 $ 15,977 $156,635
======== ======== ======== ======== ======== ========
(1) Includes construction loans on residential property.
EXHIBIT I-11
Cortland Savings Bank
Loan Originations, Purchases, and Sales
Three months Year ended December 31,
ended ----------------------------------
March 31, 1998 1997 1996 1995
-------------- ---- ---- ----
(In thousands)
Total loans, beginning of period ..... $ 157,806 160,896 160,888 154,606
--------- ------- ------- -------
Loans originated:
Residential mortgages ................ 3,600 14,732 12,382 10,789
Commercial mortgages ................. 496 1,260 2,987 5,436
Commercial loans ..................... 1,335 3,940 5,072 5,987
Otherloans ........................... 2,358 12,982 11,227 11,430
--------- ------- ------- -------
Total loans originated ............ 7,789 32,914 31,668 33,642
Principal repayments ................. (8,316) (29,089) (29,236) (26,110)
Loans transferred to held-for-sale ... (661) (2,541) -- --
Loans transferred from held-for-sale . 101 -- -- --
Loans transferred to real estate owned (45) (1,095) (711) (645)
Total charge-offs .................... (39) (3,279) (1,713) (605)
--------- ------- ------- -------
Net loan activity .................... (1,171) (3,090) 8 6,282
--------- ------- ------- -------
Total loans, end of period ........ $ 156,635 $ 157,806 $ 160,896 $ 160,888
========= ========= ========= =========
EXHIBIT I-12
Cortland Savings Bank
Non-Performing Assets
At March 3l, At December 3l,
--------------------------------------------
1998 1997 1996 1995 1994 1993
---- ---- ---- ---- ---- ----
(Dollars in thousands)
Non-accrual loans: (1)
Residential mortgages ................. $ 893 $2,010 $1,069 $ 772 $1,295 $ 299
Commercial mortgages .................. 363 1,235 1,416 421 -- 896
------ ------ ------ ------ ------ ------
Total real estate loans ............. 1,256 3,245 2,485 1,193 1,295 1,195
Commercial loans ...................... 115 331 790 739 51 243
Other loans ........................... 87 209 358 62 -- --
------ ------ ------ ------ ------ ------
Total non-accrual loans ............. 1,458 3,785 3,633 1,994 1,346 1,438
Accruing loans past due 90 days or more:
Residential mortgages ................. -- 2 1 -- 1,057 1,141
Commercial mortgages .................. -- -- -- -- -- 1,132
------ ------ ------ ------ ------ ------
Total real estate loans ............. -- 2 1 -- 1,057 2,273
Commercial loans ....................... -- -- -- -- 13 67
Other loans ............................ 10 7 33 -- 47 108
------ ------ ------ ------ ------ ------
Total loans past due 90 days or more
and still accruing ..................... 10 9 34 -- 1,117 2,448
------ ------ ------ ------ ------ ------
Total non-performing loans ............. 1,468 3,794 3,667 1,994 2,463 3,886
Real estate owned ...................... 760 964 563 374 572 75
------ ------ ------ ------ ------ ------
Total non-performing assets ............ $2,228 $4,758 $4,230 $2,368 $3,035 $3,961
====== ====== ====== ====== ====== ======
Non-performing loans as a percent
of total loans ......................... 0.94% 2.37% 2.28% 1.24% 1.60% 2.69%
Non-performing assets as a percent
of total assets ........................ 0.96% 2.04% 1.78% 1.00% 1.32% 1.69%
(1) Non-accrual loans at December 31, 1997 include $2.3 million of non-accrual
loans held for sale.
EXHIBIT I-13
Cortland Savings Bank
Classified Assets
Classified Assets. FDIC regulations require that the Bank classify its
assets on a regular basis and establish prudent valuation allowances based on
such classifications. In addition, in connection with examinations, FDIC and
Banking Department examiners have the authority to identify problem assets and,
if appropriate, require that they be classified. There are three adverse
classifications for problem assets: Substandard, Doubtful and Loss. Substandard
assets have one or more defined weaknesses and are characterized by the distinct
possibility that the Bank will sustain some loss if the deficiencies are not
corrected. Doubtful assets have the weaknesses of Substandard assets, with the
additional characteristics that the weaknesses make collection or liquidation in
full on the basis of currently existing facts, conditions and values
questionable, and there is a high probability of loss. An asset classified Loss
is considered uncollectible and of such little value that its continuance as an
asset of the Bank is not warranted.
Assets classified as Substandard or Doubtful require the Bank to establish
prudent valuation allowances. If an asset or portion thereof is classified as
Loss, the Bank must either establish a specific allowance for loss equal to 100%
of the portion of the asset classified Loss or charge off such amount. If the
Bank does not agree with an examiner's classification of an asset, it may appeal
this determination. On the basis of management's review of its loans at March
31, 1998, the Bank had $2.1 million of assets classified substandard, $49,000
classified doubtful, and none classified loss. All classified loans are
non-performing and shown in the above table of non-performing loans.
EXHIBIT 1-14
Cortland Savings Bank
Deposit Composition
At December 31,
-------------------------------------------------
At March 31, 1998 1997 1996 1995
-------------------- ---- ---- ----
Percent Percent Percent Percent
Amount of Total Amount of Total Amount of Total Amount of Total
------ -------- ------ -------- ------ -------- ------ --------
(In thousands)
Non-time accounts:
Passbook, statement savings
and club accounts (2.5-3.0%).. $ 63,658 32.11% $ 62,769 31.42% $ 63,003 30.79% $ 62,138 30.59%
NOW accounts (1.76%)............ 9,280 4.69% 9,704 4.86% 10,089 4.93% 9,638 4.75%
Demand accounts................. 9,128 4.60% 10,604 5.31% 9,563 4.67% 8,158 4.02%
Money market accounts (2.76%)... 8,314 4.19% 8,435 4.22% 9,343 4.57% 10,054 4.95%
--------- ------ -------- ------ -------- ------ --------- ------
Total non-time accounts...... 90,380 45.59% 91,512 45.81% 91,998 44.96% 89,988 44.31%
========= ====== ======== ====== ======== ====== ========= ======
Time accounts:
3.00 - 3.99%.................... 370 0.19% 164 0.08% 381 0.19% 923 0.45%
4.00 - 4.99%.................... 7,004 3.53% 8,066 4.04% 20,750 10.14% 8,518 4.20%
5.00 - 5.99%.................... 92,917 46.87% 90,507 45.30% 70,609 34.50% 59,073 29.08%
6.00 - 6.99%.................... 7,155 3.62% 9,120 4.57% 20,375 9.96% 37,399 18.41%
7.00 - 7.99%.................... 406 0.20% 399 0.20% 525 0.25% 7,207 3.55%
8.00 - 8.99%.................... 2 0.00% 2 0.00% 2 0.00% 2 0.00%
--------- ------ --------- ------ --------- ------ --------- ------
Total time accounts........... $ 107,854 54.41% $ 108,258 54.19% $ 112,642 55.04% $ 113,122 55.69%
========= ====== ========= ====== ========= ====== ========= ======
Amount Due During the
Twelve Months Ended March 31, Due After
----------------------------------------- March 31,
Interest Rate 1999 2000 2001 2001 Total
------------- ---- ---- ---- ---- -----
(In Thousands)
3.00 - 3.99%.............. $ 370 $ - $ - $ - $ 370
4.00 - 4.99%.............. 7,004 - - 7,004
5.00 - 5.99%.............. 54,754 13,827 13,200 11,136 92,917
6.00 - 6.99%.............. 1,882 3,608 1,281 384 7,155
7.00 - 7.99%.............. - 406 - - 406
8.00 - 8.99%.............. - 2 - - 2
-------- -------- -------- -------- ---------
Total..................... $ 64,010 $ 17,843 $ 14,481 $ 11,520 $ 107,854
======== ======== ======== ======== =========
EXHIBIT II-1
Cortland Savings Bank
List of Office Locations
Date Owned/ Net Book
Location Acquired Leased Value
(In Thousands)
One North Main Street, Cortland, NY 13045 Various Owned $887
and nearby drive through facility at 29-31 North Main Street
12 South Main Street, Homer, NY 13077 Various Owned 983
860 Route 13, Cortlandville, NY 13045 Various Owned 497
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%
June 5,1998 8.50% 5.11% 5.43% 5.79%
(1) End of period data.
Source: SNL Securities.
EXHIBIT II-3
Cortland Savings Bank
Demographic/Economic Reports
- --------------------------------------------------------------------------------
STATE DEMOGRAPHIC REPORT
- --------------------------------------------------------------------------------
State 00
State Name UNITED STATES
Population
- ----------
1980 226,542,204
1990 248,709,873
1997 267,805,150
2002 281,208,787
Population Growth Rate 1
Households
- ----------
1990 91,947,410
1997 99,019,931
2002 104,000,643
Household Growth Rate 1
Average Household Size 2.64
Families
- --------
1990 64,517,947
1997 68,999,546
Family Growth Rate 0.9
Race 1990 1997
- ---- ---- ----
% White 80.3 78.4
% Black 12.1 12.4
% Asian
/Pacific Isl. 2.9 3.7
% Hispanic* 9 10.8
1997 Age Distribution
- ---------------------
0-4 7.2
5-9 7.4
10-14 7.1
15-19 7.1
20-24 6.5
25-44 31.4
45-64 20.5
65-84 11.3
85+ 1.4
18+ 74.3
Median Age
- ----------
1990 32.9
1997 34.8
Male/Female Ratio 95.9
Per Capita Income $18,100
1997 Household Income*
- ----------------------
Base 99,019,225
% < $15K 17.7
% $15K-25K 14.4
% $25K-50K 33.5
% $50K-100K 26.5
% $100K-150K 5.4
% > $150K 2.6
Median Household Income
- -----------------------
1997 $36,961
2002 $42,042
1997 Average Disposable Income
- ------------------------------
Total $35,584
Householder < 35 $30,999
Householder 35-44 $40,281
Householder 45-54 $45,940
Householder 55-64 $39,611
Householder 65+ $22,603
Spending Potential Index*
- -------------------------
Auto Loan 100
Home Loan 100
Investments 100
Retirement Plans 100
Home Repair 100
Lawn & Garden 100
Remodeling 100
Appliances 100
Electronics 100
Furniture 100
Restaurants 100
Sporting Goods 100
Theater/Concerts 100
Toys & Hobbies 100
Travel 100
Video Rental 100
Apparel 100
Auto Aftermarket 100
Health Insurance 100
Pets & Supplies 100
- --------------------------------------------------------------------------------
* 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.
- --------------------------------------------------------------------------------
Copyright 1997 CACI (800) 292-CACI FAX: (703) 243-6272 5/5/98
- --------------------------------------------------------------------------------
STATE DEMOGRAPHIC REPORT
- --------------------------------------------------------------------------------
State 36
State Name NEW YORK
Population
- ----------
1980 17,558,165
1990 17,990,455
1997 18,191,341
2002 18,332,121
Population Growth Rate 0.2
Households
- ----------
1990 6,639,322
1997 6,699,651
2002 6,743,853
Household Growth Rate 0.1
Average Household Size 2.63
Families
- --------
1990 4,489,312
1997 4,530,808
Family Growth Rate 0.1
Race 1990 1997
- ---- ---- ----
% White 74.4 71.6
% Black 15.9 16.5
% Asian
/Pacific Isl. 3.9 5
% Hispanic* 12.3 15.2
1997 Age Distribution
- ---------------------
0-4 6.9
5-9 7
10-14 6.7
15-19 6.6
20-24 6.4
25-44 32.3
45-64 20.9
65-84 11.7
85+ 1.5
18+ 75.7
Median Age
- ----------
1990 33.9
1997 35.3
Male/Female Ratio 93.8
Per Capita Income $18,504
1997 Household Income*
- ----------------------
Base 6,699,533
% < $15K 20.2
% $15K-25K 13.9
% $25K-50K 31.3
% $50K-100K 25.9
% $100K-150K 5.5
% > $150K 3.2
Median Household Income
- -----------------------
1997 $36,341
2002 $38,815
1997 Average Disposable Income
- ------------------------------
Total $33,910
Householder < 35 $30,429
Householder 35-44 $36,263
Householder 45-54 $43,029
Householder 55-64 $39,393
Householder 65+ $21,618
Spending Potential Index*
- -------------------------
Auto Loan 101
Home Loan 108
Investments 110
Retirement Plans 106
Home Repair 103
Lawn & Garden 103
Remodeling 96
Appliances 101
Electronics 101
Furniture 108
Restaurants 104
Sporting Goods 103
Theater/Concerts 105
Toys & Hobbies 101
Travel 111
Video Rental 100
Apparel 105
Auto Aftermarket 103
Health Insurance 100
Pets & Supplies 101
- --------------------------------------------------------------------------------
* 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.
- --------------------------------------------------------------------------------
Copyright 1997 CACI (800) 292-CACI FAX: (703) 243-6272 5/5/98
- --------------------------------------------------------------------------------
MSA DEMOGRAPHIC REPORT
- --------------------------------------------------------------------------------
MSA 8160
MSA Name SYRACUSE, NY
Population
- ----------
1980 722,865
1990 742,177
1997 743,412
2002 744,252
Population Growth Rate 0
Households
- ----------
1990 272,974
1997 273,760
2002 274,110
Household Growth Rate 0
Average Household Size 2.61
Families
- --------
1990 187,569
1997 188,309
Family Growth Rate 0.1
Race 1990 1997
- ---- ---- ----
% White 92.2 90.7
% Black 5.7 6.5
% Asian
/Pacific Isl. 1.1 1.6
% Hispanic* 1.4 1.9
1997 Age Distribution
- ---------------------
0-4 7.3
5-9 7.4
10-14 7.2
15-19 7.8
20-24 7.3
25-44 30.7
45-64 19.3
65-84 11.4
85+ 1.5
18+ 74.2
Median Age
- ----------
1990 32.3
1997 33.9
Male/Female Ratio 94.8
Per Capita Income $14,465
1997 Household Income*
- ----------------------
Base 273,759
% < $15K 21.5
% $15K-25K 16.7
% $25K-50K 36.1
% $50K-100K 22.2
% $100K-150K 2.5
% > $150K 1
Median Household Income
- -----------------------
1997 $31,477
2002 $32,600
1997 Average Disposable Income
- ------------------------------
Total $27,838
Householder < 35 $24,744
Householder 35-44 $31,847
Householder 45-54 $37,260
Householder 55-64 $31,966
Householder 65+ $16,822
Spending Potential Index*
- -------------------------
Auto Loan 99
Home Loan 94
Investments 98
Retirement Plans 95
Home Repair 97
Lawn & Garden 95
Remodeling 97
Appliances 98
Electronics 97
Furniture 97
Restaurants 96
Sporting Goods 98
Theater/Concerts 96
Toys & Hobbies 100
Travel 96
Video Rental 97
Apparel 96
Auto Aftermarket 96
Health Insurance 99
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 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.
- --------------------------------------------------------------------------------
Copyright 1997 CACI (800) 292-CACI FAX: (703) 243-6272 5/7/98
- --------------------------------------------------------------------------------
MSA DEMOGRAPHIC REPORT
- --------------------------------------------------------------------------------
MSA 0960
MSA Name BINGHAMTON, NY
Population
- ----------
1980 263,460
1990 264,497
1997 250,857
2002 241,958
Population Growth Rate -0.7
Households
- ----------
1990 100,681
1997 95,429
2002 91,957
Household Growth Rate -0.7
Average Household Size 2.54
Families
- --------
1990 69,289
1997 65,582
Family Growth Rate -0.8
Race 1990 1997
- ---- ---- ----
% White 96.2 95.2
% Black 1.8 2
% Asian
/Pacific Isl. 1.5 2.2
% Hispanic* 1.1 1.5
1997 Age Distribution
- ---------------------
0-4 6.9
5-9 7.1
10-14 6.9
15-19 7.3
20-24 6.6
25-44 30.4
45-64 20.3
65-84 12.8
85+ 1.7
18+ 75.3
Median Age
- ----------
1990 33.9
1997 35.5
Male/Female Ratio 95
Per Capita Income $13,715
1997 Household Income*
- ----------------------
Base 95,429
% < $15K 24
% $15K-25K 18.2
% $25K-50K 35.5
% $50K-100K 19.8
% $100K-150K 1.8
% > $150K 0.7
Median Household Income
- -----------------------
1997 $28,860
2002 $29,396
1997 Average Disposable Income
- ------------------------------
Total $25,909
Householder < 35 $22,941
Householder 35-44 $29,796
Householder 45-54 $35,674
Householder 55-64 $30,035
Householder 65+ $15,822
Spending Potential Index*
- -------------------------
Auto Loan 99
Home Loan 93
Investments 99
Retirement Plans 94
Home Repair 97
Lawn & Garden 95
Remodeling 98
Appliances 98
Electronics 96
Furniture 97
Restaurants 96
Sporting Goods 97
Theater/Concerts 96
Toys & Hobbies 100
Travel 96
Video Rental 97
Apparel 95
Auto Aftermarket 95
Health Insurance 100
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 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.
- --------------------------------------------------------------------------------
Copyright 1997 CACI (800) 292-CACI FAX: (703) 243-6272 5/7/98
- --------------------------------------------------------------------------------
COUNTY DEMOGRAPHIC REPORT
- --------------------------------------------------------------------------------
State/County 36023
County Name CORTLAND NY
Population
- ----------
1980 48,820
1990 48,963
1997 48,304
2002 47,855
Population Growth Rate -0.2
Households
- ----------
1990 17,247
1997 17,114
2002 16,943
Household Growth Rate -0.1
Average Household Size 2.64
Families
- --------
1990 11,799
1997 11,671
Family Growth Rate -0.2
Race 1990 1997
- ---- ---- ----
% White 98.3 97.9
% Black 0.7 0.8
% Asian
/Pacific Isl. 0.5 0.7
% Hispanic* 0.9 1.3
1997 Age Distribution
- ---------------------
0-4 7.1
5-9 6.9
10-14 6.7
15-19 9.4
20-24 10.8
25-44 28.8
45-64 18.4
65-84 10.6
85+ 1.4
18+ 75.3
Median Age
- ----------
1990 30.3
1997 31.6
Male/Female Ratio 92.5
Per Capita Income $12,433
1997 Household Income*
- ----------------------
Base 17,114
% < $15K 22.7
% $15K-25K 18.6
% $25K-50K 38.9
% $50K-100K 17.5
% $100K-150K 1.8
% > $150K 0.6
Median Household Income
- -----------------------
1997 $28,991
2002 $31,169
1997 Average Disposable Income
- ------------------------------
Total $25,384
Householder < 35 $22,391
Householder 35-44 $30,233
Householder 45-54 $34,347
Householder 55-64 $29,120
Householder 65+ $14,846
Spending Potential Index*
- -------------------------
Auto Loan 98
Home Loan 86
Investments 91
Retirement Plans 88
Home Repair 93
Lawn & Garden 90
Remodeling 101
Appliances 97
Electronics 94
Furniture 90
Restaurants 91
Sporting Goods 95
Theater/Concerts 90
Toys & Hobbies 99
Travel 89
Video Rental 96
Apparel 90
Auto Aftermarket 92
Health Insurance 99
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 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.
- --------------------------------------------------------------------------------
Copyright 1997 CACI (800) 292-CACI FAX: (703) 243-6272 5/5/98
EXHIBIT II-4
Cortland Savings Bank
Sources of Personal Income/Employment Sectors
PERSONAL INCOME BY MAJOR SOURCE AND EARNINGS BY INDUSTRY(1)
for States and counties
(thousands of dollars)
New York [36.000]
- ------------------------------------------------------------------------------------------------------------------------------------
Item 1991 1992 1993 1994 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Income by place of residence
Personal income (thousands of dollars) 426,449,104 449,864,254 457,203,969 476,488,152 501,555,050
Nonfarm personal income 425,831,123 449,193,087 456,503,357 475,959,923 501,054,661
Farm income(2) 617,981 671,167 700,612 528,229 500,389
Population (number of persons)(3) 18,036,973 18,099,081 18,170,321 18,196,829 18,190,562
Per capita personal income (dollars) 23,643 24,856 25,162 26,185 27,572
Derivation of personal income
Earnings by place of work 305,441,339 326,475,141 331,289,663 340,128,647 356,642,266
Less: Personal cont. for social insurance(4) 20,157,669 21,277,343 21,723,056 22,809,811 20,969,575
Plus: Adjustment for residence(5) -14,032,029 -16,253,295 -16,176,404 -16,054,849 -17,458,226
Equals: Net earnings by place of residence 271,251,641 288,944,503 293,390,203 301,263,987 315,214,465
Plus: Dividends, interest, and rent(6) 83,100,905 79,683,581 80,332,228 84,364,798 88,221,927
Plus: Transfer payments 72,096,558 81,236,170 83,481,538 90,859,367 98,118,658
Earnings by place of work
Components of earnings
Wage and salary disbursements 247,723,582 261,957,013 266,625,813 272,565,079 285,813,769
Other labor income 26,017,929 28,145,814 29,950,705 31,069,418 32,280,796
Proprietors' income(7) 31,699,828 36,372,314 34,713,145 36,494,150 38,547,701
Farm proprietors' income 286,741 348,667 346,393 179,067 109,167
Nonfarm proprietors' income 31,413,087 36,023,647 34,366,752 36,315,083 38,438,534
Earnings by industry
Farm earnings 617,981 671,167 700,612 528,229 500,389
Nonfarm earnings 304,823,358 325,803,974 330,589,051 339,600,418 356,141,877
Private earnings 256,703,602 276,348,868 279,258,676 286,634,354 302,158,622
Ag. serv., forestry, fishing, and other(8) 1,086,872 1,102,025 1,139,347 1,174,292 1,239,111
Mining 276,048 273,802 281,155 298,633 293,435
Construction 12,677,634 11,765,608 11,856,560 12,667,535 12,766,179
Manufacturing 44,745,691 45,876,270 45,362,772 45,494,376 46,445,386
Durable goods 25,068,221 25,047,552 24,575,906 24,293,517 24,738,903
Nondurable goods 19,677,470 20,828,718 20,786,866 21,200,859 21,706,483
Transportation and public utilities 19,450,794 20,065,314 20,486,738 21,318,786 22,111,552
Who1esale trade 19,119,719 19,824,455 19,800,313 20,338,035 21,278,758
Retail trade 21,686,107 22,345,983 22,588,182 23,592,343 24,447,935
Finance, insurance, and real estate 44,488,557 54,163,800 53,874,820 52,813,729 58,166,600
Services 93,172,180 100,931,611 103,868,789 108,936,625 115,409,666
Government and government enterprises 48,119,756 49,455,106 51,330,375 52,966,064 53,983,255
Federal, civilian 6,006,187 6,332,570 6,418,896 6,543,912 6,584,486
Military 1,138,593 1,185,018 1,155,578 1,083,014 979,334
State and local 40,974,976 41,937,518 43,755,901 45,339,138 46,419,435
State 9,418,527 9,580,671 10,046,333 10,577,353 10,448,545
Local 31,556,449 32,356,847 33,709,568 34,761,785 35,970,890
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CAO5.1 August 1997 BUREAU OF ECONOMIC ANALYSIS
PERSONAL INCOME BY MAJOR SOURCE AND EARNINGS BY INDUSTRY(1)
for States and counties
(thousands of dollars)
Cortland, New York [36.023]
- ------------------------------------------------------------------------------------------------------------------------------------
Item 1991 1992 1993 1994 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Income by place of residence
Personal income (thousands of dollars) 745,879 786,663 802,853 832,919 857,455
Nonfarm personal income 739,439 777,903 794,609 827,594 853,629
Farm income(2) 6,440 8,760 8,244 5,325 3,826
Population (number of persons)(3) 49,208 49,384 49,416 49,269 48,946
Per capita personal income (dollars) 15,158 15,930 16,247 16,906 17,518
Derivation of personal income
Earnings by place of work 504,401 539,213 538,732 556,191 557,171
Less: Personal cont. for social insurance(4) 32,520 34,270 34,447 36,375 36,658
Plus: Adjustment for residence(5) 17,846 14,062 16,612 19,823 24,112
Equals: Net earnings by place of residence 489,727 519,005 520,897 539,639 544,625
Plus: Dividends, interest, and rent(6) 116,454 112,436 122,976 121,093 127,093
Plus: Transfer payments 139,698 155,222 158,980 172,187 185,737
Earnings by place of work
Components of earnings
Wage and salary disbursements 402,245 426,195 427,183 432,617 433,252
Other labor income 48,029 52,452 55,385 55,790 55,424
Proprietors' income(7) 54,127 60,566 56,164 67,784 68,495
Farm proprietors' income 2,418 4,911 4,018 1,152 -846
Nonfarm proprietors' income 51,709 55,655 52,146 66,632 69,341
Earnings by industry
Farm earnings 6,440 8,760 8,244 5,325 3,826
Nonfarm earnings 497,961 530,453 530,488 550,866 553,345
Private earnings 402,412 430,218 426,925 442,373 442,124
Ag. serv., forestry, fishing, and other(8) 3,071 2,883 2,750 2,770 2,715
Mining 165 172 213 216 243
Construction 28,868 29,305 29,152 30,586 27,874
Manufacturing 163,130 174,278 171,342 163,295 155,895
Durable goods 113,915 118,927 116,603 104,547 98,421
Nondurable goods 49,215 55,351 54,739 58,748 57,474
Transportation and public utilities 12,465 13,983 15,488 15,520 17,122
Wholesale trade 12,645 12,732 14,023 15,237 14,937
Retail trade 57,927 61,395 60,061 61,252 62,951
Finance, insurance, and real estate 11,370 12,137 11,946 12,764 13,992
Services 112,771 123,333 121,950 140,733 146,395
Government and government enterprises 95,549 100,235 103,563 108,493 111,221
Federal, civilian 3,634 4,282 4,159 3,991 4,005
Military 965 1,013 966 979 924
State and local 90,950 94,940 98,438 103,523 106,292
State 36,541 36,924 37,601 39,918 40,129
Local 54,409 58,016 60,837 63,605 66,163
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CAO5.1 August 1997 BUREAU OF ECONOMIC ANALYSIS
Footnotes for table CA05
Personal Income by major source and Earnings by Major 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; and 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,
LA; 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
September 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.
(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
and Aleutians West Census Area. Estimates for 1991 forward separate Denali
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.
(14) Cibola, NM was separated from Valencia in June 1981, but in these
estimates, Valencia includes Cibola through the end of 1981.
(15) La Paz county, AZ was separated from Yuma county on January 1, 1983. The
Yuma, AZ MSA contains La Paz, AZ through 1982.
(16) Shawano, WI and Menominee, WI are combined as Shawano (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 available for this year.
FULL-TIME AND PART-TIME EMPLOYEES BY MAJOR INDUSTRY(1)
for States and counties
(number of jobs)
New York [36.000]
- ------------------------------------------------------------------------------------------------------------------------------------
Item 1991 1992 1993 1994 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Employment by place of work
Total full- and part-time employment 9,619,382 9,587,629 9,600,441 9,692,949 9,740,793
By type
Wage and salary employment 8,332,467 8,179,896 8,196,939 8,250,134 8,283,479
Proprietors' employment 1,286,915 1,407,733 1,403,502 1,442,815 1,457,314
Farm proprietors' employment 39,291 39,417 38,626 36,670 36,674
Nonfarm proprietors' employment(2) 1,247,624 1,368,316 1,364,876 1,406,145 1,420,640
By industry
Farm employment 65,040 64,787 63,878 62,579 60,966
Nonfarm employment 9,554,342 9,522,842 9,536,563 9,630,370 9,679,827
Private employment 8,054,500 8,047,730 8,063,842 8,172,340 8,260,522
Ag. serv., forestry, fishing, and other(3) 56,253 57,490 62,005 64,437 67,572
Mining 10,964 10,698 10,790 10,897 10,748
Construction 381,720 364,084 358,140 368,762 373,361
Manufacturing 1,091,374 1,049,796 1,017,410 995,564 982,532
Transportation and public utilities 475,571 460,298 466,961 472,117 476,424
Wholesale trade 469,070 466,328 455,794 455,376 463,204
Retail trade 1,337,963 1,342,957 1,343,627 1,373,590 1,403,944
Finance, insurance, and real estate 1,083,164 1,058,557 1,052,103 1,068,536 1,049,318
Services 3,148,421 3,237,522 3,297,012 3,363,061 3,433,419
Government and government enterprises 1,499,842 1,475,112 1,472,721 1,458,030 1,419,305
Federal, civilian 156,797 154,683 149,185 146,900 145,670
Military 87,585 84,377 81,039 73,994 65,142
State and local 1,255,460 1,236,052 1,242,497 1,237,136 1,208,493
State 265,674 264,629 266,643 267,737 259,036
Local 989,786 971,423 975,854 969,399 949,457
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)
Cortland, New York [36.023]
- ------------------------------------------------------------------------------------------------------------------------------------
Item 1991 1992 1993 1994 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Employment by place of work
Total full- and part-time employment 25,397 25,587 25,252 25,244 25,132
By type
Wage and salary employment 20,745 20,487 2O,227 20,206 20,027
Proprietors' employment 4,652 5,100 5,025 5,038 5,105
Farm proprietors' employment 609 616 604 573 573
Nonfarm proprietors' employment(2) 4,043 4,484 4,421 4,465 4,532
By industry
Farm employment 1,023 1,008 994 973 948
Nonfarm employment 24,374 24,579 24,258 24,271 24,184
Private employment 20,478 20,960 20,639 20,615 20,567
Ag. serv., forestry, fishing, and other(3) 222 210 226 236 238
Mining (L) (L) (L) (L) 10
Construction 1,138 1,216 1,168 1,122 1,053
Manufacturing 5,670 5,605 5,417 5,057 4,833
Transportation and public utilities 456 465 503 496 528
Wholesale trade 533 535 579 597 569
Retail trade 4,659 4,781 4,849 4,952 5,045
Finance, insurance, and real estate 1,141 1,217 1,122 1,213 1,215
Services 6,654 6,926 6,767 6,933 7,076
Government and government enterprises 3,896 3,619 3,619 3,656 3,617
Federal, civilian 102 111 103 104 103
Military 152 145 136 123 112
State and local 3,642 3,363 3,380 3,429 3,402
State 1,300 1,068 1,053 1,073 1,066
Local 2,342 2,295 2,327 2,356 2,336
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 based 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 end of 1981.
(5) La Paz county, AZ was separated from Yuma county on January 1, 1983. The
Yuma, AZ MSA includes La Paz, AZ through 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
end Aleutians West Census Area. Estimates for 1991 forward separate Denali
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.
(7) Shawano, WI and Menominee, WI are combined as Shawano (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
New York [36.000]
- ------------------------------------------------------------------------------------------------------------------------------------
Item 1991 1992 1993 1994 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Place of residence profile
Personal income (thousands of dollars) 426,449,104 449,864,254 457,203,969 476,488,152 501,555,050
Nonfarm personal income 425,831,123 449,193,087 456,503,357 475,959,923 501,054,661
Farm income 617,981 671,167 700,612 528,229 500,389
Derivation or personal income
Net earnings(1) 271,251,641 288,944,503 293,390,203 301,263,987 315,214,465
Transfer payments 72,096,558 81,236,170 83,481,538 90,859,367 98,118,658
Income maintenance(2) 7,423,158 8,638,524 9,532,421 10,383,993 10,999,344
Unemployment insurance 2,654,137 4,716,712 3,424,635 2,250,673 2,085,462
Retirement and other 62,019,263 67,880,934 70,524,482 78,224,701 85,033,852
Dividends, interest, and rent 83,100,905 79,683,581 80,332,228 84,364,798 88,221,927
Population (number of persons)(3) 18,036,973 18,099,081 18,170,321 18,196,829 18,190,562
Per capita incomes (dollars)(4)
Per capita personal income 23,643 24,856 25,162 26,185 27,572
Per capita net earnings 15,039 15,965 16,147 16,556 17,328
Per capita transfer payments 3,997 4,488 4,594 4,993 5,394
Per capita income maintenance 412 477 525 571 605
Per capita unemployment insurance 147 261 188 124 115
Per capita retirement & other 3,438 3,751 3,881 4,299 4,675
Per capita dividends, interest, & rent 4,607 4,403 4,421 4,636 4,850
Place of work profile
Total earnings (place of work, $000) 305,441,339 326,475,141 331,289,663 340,128,647 356,642,266
Wages and salary disbursements 247,723,582 261,957,013 266,625,813 272,565,079 285,813,769
Other labor income 26,017,929 28,145,814 29,950,705 31,069,418 32,280,796
Proprietors' income 31,699,828 36,372,314 34,713,145 36,494,150 38,547,701
Nonfarm proprietors' income 31,413,087 36,023,647 34,366,752 36,315,083 38,438,534
Farm proprietors' income 286,741 348,667 346,393 179,067 109,167
Total full- and part-time employment 9,619,382 9,587,629 9,600,441 9,692,949 9,740,793
Wage and salary jobs 8,332,467 8,179,896 8,196,939 8,250,134 8,283,479
Number of proprietors 1,286,915 1,407,733 1,403,502 1,442,815 1,457,314
Number of nonfarm proprietors(5) 1,247,624 1,368,316 1,364,876 1,406,145 1,420,640
Number of farm proprietors 39,291 39,417 38,626 36,670 36,674
Average earnings per job (dollars) 31,753 34,052 34,508 35,090 36,613
Wage & salary earnings per job 29,730 32,024 32,527 33,038 34,504
Average earnings per nonfarm proprietor 25,178 26,327 25,179 25,826 27,057
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA3O August 1997 BUREAU OF ECONOMIC ANALYSIS
REGIONAL ECONOMIC PROFILE
for States and counties
Cortland, New York [36.023]
- ------------------------------------------------------------------------------------------------------------------------------------
Item 1991 1992 1993 1994 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Place of residence profile
Personal income (thousands of dollars) 745,879 786,663 802,853 832,919 857,455
Nonfarm personal income 739,439 777,903 794,609 827,594 853,629
Farm income 6,440 8,760 8,244 5,325 3,326
Derivation of personal income
Net earnings(1) 489,727 519,005 520,897 539,639 544,625
Transfer payments 139,698 155,222 158,980 172,187 185,737
Income maintenance(2) 14,306 15,755 17,144 18,120 19,239
Unemployment insurance 7,362 11,913 8,997 6,459 5,794
Retirement and other 118,030 127,554 132,839 147,608 160,704
Dividends, interest, and rent 116,454 112,436 122,976 121,093 127,093
Population (number of persons)(3) 49,208 49,384 49,416 49,269 48,946
Per capita incomes (dollars)(4)
Per capita personal income 15,158 15,930 16,247 16,906 17,518
Per capita net earnings 9,952 10,510 10,541 10,953 11,127
Per capita transfer payments 2,839 3,143 3,217 3,495 3,795
Per capita income maintenance 291 319 347 368 393
Per capita unemployment insurance 150 241 182 131 118
Per capita retirement & other 2,399 2,583 2,688 2,996 3,283
Per capita dividends, interest, & rent 2,367 2,277 2,489 2,458 2,597
Place of work profile
Total earnings (place of work, $000) 504,401 539,213 538,732 556,191 557,171
Wages end salary disbursements 402,245 426,195 427,183 432,617 433,252
Other labor income 48,029 52,452 55,385 55,790 55,424
Proprietors' income 54,127 60,566 56,164 67,784 68,495
Nonfarm proprietors' income 51,709 55,655 52,146 66,632 69,341
Farm proprietors' income 2,418 4,911 4,018 1,152 -846
Total full- and part-time employment 25,397 25,587 25,252 25,244 25,132
Wage and salary jobs 20,745 20,487 20,227 20,206 20,027
Number of proprietors 4,652 5,100 5,025 5,038 5,105
Number of nonfarm proprietors(5) 4,043 4,484 4,421 4,465 4,532
Number of farm proprietors 609 616 604 573 573
Average earnings per job (dollars) 19,861 21,074 21,334 22,033 22,170
Wage & salary earnings per job 19,390 20,803 21,119 21,410 21,633
Average earnings per nonfarm proprietor 12,790 12,412 11,795 14,923 15,300
See footnotes at end of table. REGIONAL ECONOMIC INFORMATION SYSTEM
Table CA3O August 1997 BUREAU OF ECONOMIC ANALYSIS
Footnotes for Table CA3O, 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 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
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 Cibola 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 Denali
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) Shawano, WI and Menominee, WI are combined as Shawano (incl. Menominee),
WI for the years prior to 1989.
(L) Less than $50,000 or less than 10 jobs, as appropriate. Estimates are
included in totals.
(N) Data not available for this year.
EXHIBIT III-1
Cortland Savings Bank
General Characteristics of Publicly-Traded Institutions
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
June 16, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ----- ------
($Mil) ($) ($Mil)
California Companies
- --------------------
AHM Ahmanson and Co. H.F. of CA NYSE Nationwide M.B. 54,520 371 12-31 10/72 75.63 8,299
GDW Golden West Fin. Corp. of CA NYSE Nationwide M.B. 39,669 249 12-31 05/59 106.06 6,066
GSB Golden State Bancorp of CA NYSE California Div. 16,029 D 178 06-30 10/83 34.50 1,771
DSL Downey Financial Corp. of CA NYSE Southern CA Thrift 5,872 85 12-31 01/71 34.31 964
BVCC Bay View Capital Corp. of CA OTC San Francisco CA M.B. 5,341 37 12-31 05/86 32.25 653
BPLS Bank Plus Corp. of CA OTC Los Angeles CA R.E. 4,220 37 12-31 / 13.25 257
FED FirstFed Fin. Corp. of CA NYSE Los Angeles CA R.E. 4,067 24 12-31 12/83 50.38 534
WES Westcorp Inc. of Orange CA NYSE California Div. 3,729 D 26 12-31 05/86 12.00 316
PFFB PFF Bancorp of Pomona CA OTC Southern CA Thrift 2,812 23 03-31 03/96 19.44 332
HEMT HF Bancorp of Hemet CA OTC Southern CA Thrift 1,066 19 06-30 06/95 16.75 106
HTHR Hawthorne Fin. Corp. of CA OTC Southern CA Thrift 1,047 6 12-31 / 17.25 55
REDF RedFed Bancorp of Redlands CA OTC Southern CA Thrift 1,034 14 12-31 04/94 20.31 150
ITLA ITLA Capital Corp of CA (3) OTC Los Angeles CA R.E. 1,011 6 12-31 10/95 22.13 170
QCBC Quaker City Bancorp of CA OTC Los Angeles CA R.E. 860 8 06-30 12/93 22.00 103
PROV Provident Fin. Holdings of CA OTC Southern CA M.B. 765 10 06-30 06/96 22.75 106
HBNK Highland Bancorp of CA OTC Los Angeles CA R.E. 556 7 12-31 / 42.75 99
MBBC Monterey Bay Bancorp of CA OTC West Central CA Thrift 403 7 12-31 02/95 21.38 68
SGVB SGV Bancorp of W. Covina CA OTC Los Angeles CA Thrift 401 8 06-30 06/95 18.13 43
LFCO Life Financial Corp of CA OTC Southern CA Thrift 387 5 12-31 / 21.38 140
BYFC Broadway Fin. Corp. of CA OTC Los Angeles CA Thrift 128 3 12-31 01/96 11.00 9
Florida Companies
- -----------------
BANC BankAtlantic Bancorp of FL OTC Southeastern FL M.B. 3,527 60 12-31 11/83 13.50 445
OCN Ocwen Financial Corp. of FL NYSE Southeast FL Div. 3,421 1 12-31 / 24.63 1,495
BKUNA BankUnited Fin. Corp. of FL OTC Miami FL Thrift 3,327 16 09-30 12/85 17.13 265
FFPB First Palm Beach Bancorp of FL OTC Southeast FL Thrift 1,821 D 47 09-30 09/93 43.88 222
FFFL Fidelity Bcsh MHC of FL (47.7) OTC Southeast FL Thrift 1,321 20 12-31 01/94 28.75 196
HARB Harbor Florida Bancshrs of FL OTC Eastern FL Thrift 1,284 23 09-30 03/98 11.94 367
CMSV Commty. Svgs, MHC of FL (48.5) OTC Southeast FL Thrift 761 21 12-31 10/94 34.50 176
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
June 16, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ----- ------
($Mil) ($) ($Mil)
Florida Companies (continued)
- -----------------------------
FFLC FFLC Bancorp of Leesburg FL OTC Central FL Thrift 409 9 12-31 01/94 20.13 75
Mid-Atlantic Companies
- ----------------------
DME Dime Bancorp, Inc. of NY (3) NYSE NY,NJ,FL M.B. 22,024 91 12-31 08/86 30.13 3,443
SVRN Sovereign Bancorp, Inc. of PA OTC PA,NJ,DE M.B. 18,096 150 12-31 08/86 17.38 2,310
GPT GreenPoint Fin. Corp. of NY (3) NYSE New York City NY Thrift 13,228 74 12-31 01/94 40.94 3,458
ASFC Astoria Financial Corp. of NY OTC New York City NY Thrift 10,895 61 12-31 11/93 54.31 1,432
LISB Long Island Bancorp, Inc of NY OTC Long Island NY M.B. 6,296 35 09-30 04/94 61.50 1,472
ALBK ALBANK Fin. Corp. of Albany NY OTC Upstate NY,MA,VT Thrift 4,089 108 12-31 04/92 52.38 673
ICBC Independence Comm Bnk Cp of NY OTC New York City Thrift 4,072 P 34 March 03/98 16.81 1,184
ROSE T R Financial Corp. of NY (3) OTC New York City NY Thrift 4,006 15 12-31 06/93 42.25 741
RSLN Roslyn Bancorp, Inc. of NY (3) OTC Long Island NY M.B. 3,706 8 12-31 01/97 22.13 948
NBCP Niagara Bancorp of NY MHC(45.4 (3) OTC Northern NY Thrift 3,145 P 15 12/31 04/98 14.56 433
SIB Staten Island Bancorp of NY (3) NYSE New York City NY Thrift 2,671 16 12-31 12/97 21.44 968
NWSB Northwest Bcrp MHC of PA (30.7 OTC Northwest PA Thrift 2,409 67 06-30 11/94 16.00 749
CMSB Commonwealth Bancorp Inc of PA OTC Philadelphia PA M.B. 2,390 56 12-31 06/96 24.00 390
HARS Harris Fin. MHC of PA (24.3) OTC Harrisburg PA M.B. 2,260 33 12-31 01/94 24.31 825
RELY Reliance Bancorp, Inc. of NY OTC New York City NY Thrift 2,180 30 06-30 03/94 39.25 378
HAVN Haven Bancorp of Woodhaven NY OTC New York City NY Thrift 2,018 33 12-31 09/93 26.88 238
QCSB Queens County Bancorp of NY (3) OTC New York City NY Thrift 1,622 11 12-31 11/93 44.44 663
DIME Dime Community Bancorp of NY (3) OTC New York City NY Thrift 1,577 15 06-30 06/96 29.00 361
JSB JSB Financial, Inc. of NY (3) NYSE New York City NY Thrift 1,531 S 13 12-31 06/90 58.44 578
OCFC Ocean Fin. Corp. of NJ OTC Eastern NJ Thrift 1,518 10 12-31 07/96 19.50 303
WSFS WSFS Financial Corp. of DE (3) OTC Wilmington Div. 1,515 D 16 12-31 11/86 21.25 265
PFSB PennFed Fin. Services of NJ OTC Northern NJ Thrift 1,469 18 06-30 07/94 17.00 164
RCBK Richmond County Fin Corp of NY OTC New York City Thrift 1,464 13 June 02/98 18.50 489
FSLA First Source Bancorp of NJ OTC Eastern NJ Thrift 1,192 P 17 12-31 04/98 10.00 317
MFSL Maryland Fed. Bancorp of MD OTC Southern MD Thrift 1,192 27 02-28 06/87 39.00 254
YFED York Financial Corp. of PA OTC PA,MD Thrift 1,182 D 22 06-30 02/84 21.75 194
FFIC Flushing Fin. Corp. of NY (3) OTC New York City NY Thrift 1,078 7 12-31 11/95 26.50 207
PVSA Parkvale Financial Corp of PA OTC Southwestern PA Thrift 1,055 29 06-30 07/87 31.75 164
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
June 16, 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)
- ----------------------------------
ESBF ESB Financial Corp of PA OTC Western PA Thrift 946 11 12-31 06/90 18.13 104
PSBK Progressive Bank, Inc. of NY (3) OTC Southeast NY Thrift 896 17 12-31 08/84 42.00 162
TSBS Peoples Bancorp Inc of NJ (3) OTC Central NJ Thrift 889 14 12-31 04/98 10.00 362
GAF GA Financial Corp. of PA AMEX Pittsburgh PA Thrift 818 13 12-31 03/96 20.25 154
IBSF IBS Financial Corp. of NJ OTC Southwest NJ Thrift 752 10 09-30 10/94 18.06 198
SFIN Statewide Fin. Corp. of NJ OTC Northern NJ Thrift 671 16 12-31 10/95 22.25 101
FMCO FMS Financial Corp. of NJ OTC Southern NJ Thrift 669 20 12-31 12/88 45.00 108
FBBC First Bell Bancorp of PA OTC Pittsburgh PA Thrift 665 7 12-31 06/95 19.69 128
THRD TF Financial Corp. of PA OTC PA, NJ Thrift 639 14 12-31 07/94 26.00 83
FSNJ Bayonne Banchsares of NJ OTC Northern NJ Thrift 611 D 4 03-31 08/97 16.25 147
FSPG First Home Bancorp of NJ OTC NJ,DE Thrift 546 10 12-31 04/87 31.13 84
PULS Pulse Bancorp of S. River NJ OTC Central NJ Thrift 540 4 09-30 09/86 27.63 86
AHCI Ambanc Holding Co., Inc. of NY (3) OTC East-Central NY Thrift 520 12 12-31 12/95 18.63 79
PFNC Progress Financial Corp. of PA OTC Southeastern PA Thrift 485 10 12-31 07/83 19.50 82
LVSB Lakeview Financial of NJ OTC Northern NJ Thrift 473 D 8 07-31 12/93 24.25 94
NEP Northeast PA Fin. Corp of PA AMEX Northeast PA Thrift 437 P 10 DEC 04/98 14.50 93
RARB Raritan Bancorp of Raritan NJ (3) OTC Central NJ Thrift 419 6 12-31 03/87 30.00 72
CNY Carver Bancorp, Inc. of NY AMEX New York, NY Thrift 416 D 7 03-31 10/94 13.31 31
SHEN First Shenango Bancorp of PA OTC Western PA Thrift 403 4 12-31 04/93 41.25 85
FSBI Fidelity Bancorp, Inc. of PA OTC Southwestern PA Thrift 403 8 09-30 06/88 24.00 47
FKFS First Keystone Fin. Corp of PA OTC Philadelphia PA Thrift 385 5 09-30 01/95 18.75 45
PBCI Pamrapo Bancorp, Inc. of NJ OTC Northern NJ Thrift 381 10 12-31 11/89 28.25 80
FOBC Fed One Bancorp of Wheeling WV OTC Northern WV,OH Thrift 368 11 12-31 01/95 36.25 87
HARL Harleysville SB of PA OTC Southeastern PA Thrift 368 4 09-30 08/87 32.38 54
LFBI Little Falls Bancorp of NJ OTC New Jersey Thrift 355 6 12-31 01/96 19.50 48
WSBI Warwick Community Bncrp of NY (3) OTC Southeast NY Thrift 350 P 4 05-31 12/97 16.88 112
CVAL Chester Valley Bancorp of PA OTC Southeastern PA Thrift 344 7 06-30 03/87 31.88 70
PHFC Pittsburgh Home Fin Corp of PA OTC Pittsburgh PA Thrift 338 9 09-30 04/96 17.63 35
EQSB Equitable FSB of Wheaton MD OTC Central MD Thrift 335 4 09-30 09/93 30.50 37
YFCB Yonkers Fin. Corp. of NY OTC Yonkers NY Thrift 332 D 4 09-30 04/96 18.94 57
FBER 1st Bergen Bancorp of NJ OTC Northern NJ Thrift 316 4 12-31 04/96 19.13 52
FIBC Financial Bancorp, Inc. of NY OTC New York City NY Thrift 310 5 09-30 08/94 27.50 47
LFED Leeds Fed Bksr MHC of MD (36.3 OTC Baltimore MD Thrift 299 1 06-30 05/94 19.75 102
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
June 16, 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)
- ----------------------------------
CATB Catskill Fin. Corp. of NY (3) OTC Albany NY Thrift 296 4 09-30 04/96 17.38 78
WVFC WVS Financial Corp. of PA OTC Pittsburgh PA Thrift 292 D 5 06-30 11/93 18.50 67
ALLB Alliance Bank MHC of PA (19.9) OTC Southeast PA Thrift 273 7 12-31 03/95 34.00 111
WYNE Wayne Bancorp, Inc. of NJ OTC Northern NJ Thrift 270 D 5 12-31 06/96 31.38 63
WSB Washington SB, FSB of MD AMEX Southeastern MD Thrift 266 D 5 12-31 / 7.13 31
SKAN Skaneateles Bancorp Inc of NY (3) OTC Northwest NY Thrift 258 9 12-31 06/86 17.50 25
IFSB Independence FSB of DC OTC Washington DC Ret. 252 S 2 12-31 06/85 18.25 23
SBFL SB Fngr Lakes MHC of NY (33.1) OTC Western NY Thrift 251 5 12-31 11/94 19.63 70
HRBF Harbor Federal Bancorp of MD OTC Baltimore MD Thrift 231 9 03-31 08/94 21.50 36
ESBK Elmira Svgs Bank (The) of NY (3) OTC NY,PA Thrift 230 6 12-31 03/85 29.25 21
PHSB Ppls Home SB, MHC of PA (45.0) OTC Western PA Thrift 223 9 12-31 07/97 20.13 56
LARL Laurel Capital Group of PA OTC Southwestern PA Thrift 217 6 06-30 02/87 20.50 45
PBHC Pathfinder BC MHC of NY (46.1) (3) OTC Upstate NY Thrift 196 5 12-31 11/95 22.25 63
PEEK Peekskill Fin. Corp. of NY OTC Southeast NY Thrift 196 3 06-30 12/95 18.00 54
PLSK Pulaski SB, MHC of NJ (46.0) OTC New Jersey Thrift 191 6 12-31 04/97 18.25 38
SFED SFS Bancorp of Schenectady NY OTC Eastern NY Thrift 175 4 12-31 06/95 22.00 27
PRBC Prestige Bancorp of PA OTC Southwestern PA Thrift 161 4 12-31 06/96 20.50 22
AFED AFSALA Bancorp, Inc. of NY OTC Central NY Thrift 160 D 5 09-30 10/96 19.75 27
SKBO First Carnegie MHC of PA(45.0) OTC Western PA Thrift 144 D 3 03-31 04/97 19.50 45
CFKY Columbia Financial of KY *** NorthCentral KY Thrift 127 P 5 12-31 04/98 15.00 40
TPNZ Tappan Zee Fin., Inc. of NY OTC Southeast NY Thrift 126 D 1 03-31 10/95 20.13 30
GOSB GSB Financial Corp. of NY (3) OTC Southeast NY Thrift 119 2 09-30 07/97 17.13 39
AFBC Advance Fin. Bancorp of WV OTC Northern Neck WV Thrift 111 2 06-30 01/97 18.50 20
USAB USABancshares, Inc of PA (3) OTC Philadelphia PA Thrift 103 1 12-31 / 14.50 22
WHGB WHG Bancshares of MD OTC Baltimore MD Thrift 101 D 5 09-30 04/96 16.00 22
ALBC Albion Banc Corp. of Albion NY OTC Western NY Thrift 73 2 09-30 07/93 9.50 7
PWBK Pennwood Bancorp, Inc. of PA OTC Pittsburgh PA Thrift 46 3 06-30 07/96 14.00 10
Mid-West Companies
- ------------------
COFI Charter One Financial of OH OTC OH,MI,NY Div. 19,457 221 12-31 01/88 35.50 4,549
CFB Commercial Federal Corp. of NE NYSE NE,CO,KS,OK,IA M.B. 8,529 108 06-30 12/84 33.13 1,335
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
June 16, 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)
- ------------------------------
SPBC St. Paul Bancorp, Inc. of IL OTC Chicago IL Div. 4,583 52 12-31 05/87 24.88 854
CTZN CitFed Bancorp of Dayton OH OTC Dayton OH M.B. 3,533 35 03-31 01/92 49.25 645
MAFB MAF Bancorp, Inc. of IL OTC Chicago IL Thrift 3,511 21 12-31 01/90 38.13 573
FLGS Flagstar Bancorp, Inc of MI OTC MI Thrift 2,564 19 12/31 / 23.94 327
ABCW Anchor Bancorp Wisconsin of WI OTC Wisconsin M.B. 1,999 35 03-31 07/92 40.94 367
DNFC D&N Financial Corp. of MI OTC Northern MI Ret. 1,868 37 12-31 02/85 26.25 240
FISB First Indiana Corp. of IN OTC Central IN M.B. 1,688 26 12-31 08/83 25.75 328
STFR St. Francis Cap. Corp. of WI OTC Milwaukee WI Thrift 1,648 23 09-30 06/93 42.25 221
FTFC First Fed. Capital Corp. of WI OTC Southern WI M.B. 1,580 49 12-31 11/89 35.00 324
ABCL Alliance Bancorp, Inc. of IL OTC Chicago IL M.B. 1,537 14 12-31 07/92 26.75 215
JSBA Jefferson Svgs Bancorp of MO OTC St. Louis MO,TX Thrift 1,238 D 32 12-31 04/93 30.25 303
METF Metropolitan Fin. Corp. of OH OTC Northeast OH Thrift 990 15 12-31 / 15.00 106
OFCP Ottawa Financial Corp. of MI OTC Western MI Thrift 915 26 12-31 08/94 29.00 154
CFSB CFSB Bancorp of Lansing MI OTC Central MI Thrift 846 17 12-31 06/90 26.75 220
GSBC Great Southern Bancorp of MO OTC Southwest MO Thrift 815 25 06-30 12/89 25.00 201
HMNF HMN Financial, Inc. of MN OTC Southeast MN Thrift 732 7 12-31 06/94 18.00 112
HOMF Home Fed Bancorp of Seymour IN OTC Southern IN Thrift 705 16 06-30 01/88 30.00 154
SFSL Security First Corp. of OH OTC Northeastern OH R.E. 685 14 03-31 01/88 25.00 189
FNGB First Northern Cap. Corp of WI OTC Northeast WI Thrift 677 19 12-31 12/83 13.50 120
MSBK Mutual SB, FSB of Bay City MI OTC Michigan M.B. 657 22 12-31 07/92 11.75 50
FFYF FFY Financial Corp. of OH OTC Youngstown OH Thrift 645 10 06-30 06/93 32.88 133
EMLD Emerald Financial Corp. of OH OTC Cleveland OH Thrift 616 14 12-31 / 13.25 136
AVND Avondale Fin. Corp. of IL OTC Chicago IL Ret. 607 5 12-31 04/95 17.38 58
FDEF First Defiance Fin.Corp. of OH OTC Northwest OH Thrift 577 10 12-31 10/95 14.94 121
CAFI Camco Fin. Corp. of OH OTC Eastern OH M.B. 576 11 12-31 / 29.50 108
FFSX First FSB MHC Sxld of IA(46.1) OTC Western IA Thrift 571 13 06-30 07/92 36.50 104
HFFC HF Financial Corp. of SD OTC South Dakota Thrift 570 19 06-30 04/92 23.75 105
HFGI Harrington Fin. Group of IN OTC Eastern IN Thrift 553 4 06-30 / 11.38 38
FFOH Fidelity Financial of OH OTC Cincinnati OH Thrift 540 12 12-31 03/96 17.38 97
FCBF FCB Fin. Corp. of Neenah WI OTC Eastern WI Thrift 520 D 13 03-31 09/93 32.00 124
CBCI Calumet Bancorp of Chicago IL OTC Chicago IL Thrift 490 5 12-31 02/92 36.75 115
FBCI Fidelity Bancorp of Chicago IL OTC Chicago IL Thrift 484 5 09-30 12/93 23.13 65
SFSB SuburbFed Fin. Corp. of IL OTC IL,IN Thrift 446 12 12-31 03/92 47.25 60
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
June 16, 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)
- ------------------------------
HALL Hallmark Capital Corp. of WI OTC Milwaukee WI Thrift 421 3 06-30 01/94 15.00 44
PERM Permanent Bancorp, Inc. of IN OTC Southwest IN Thrift 420 D 11 03-31 04/94 16.00 67
PVFC PVF Capital Corp. of OH OTC Cleveland OH R.E. 419 9 06-30 12/92 26.50 70
FFHH FSF Financial Corp. of MN OTC Southern MN Thrift 411 11 09-30 10/94 19.00 56
FFKY First Fed. Fin. Corp. of KY OTC Central KY Thrift 407 8 06-30 07/87 26.50 110
CASH First Midwest Fin., Inc. of OH OTC IA,SD R.E. 405 12 09-30 09/93 23.25 62
KNK Kankakee Bancorp, Inc. of IL AMEX Illinois Thrift 399 9 12-31 01/93 35.50 49
SWBI Southwest Bancshares of IL OTC Chicago IL Thrift 393 6 12-31 06/92 31.75 89
FMBD First Mutual Bancorp Inc of IL OTC Central IL Thrift 390 14 12-31 07/95 17.63 62
ASBI Ameriana Bancorp of IN OTC Eastern IN,OH Thrift 388 8 12-31 03/87 19.75 64
INBI Industrial Bancorp of OH OTC Northern OH Thrift 374 10 12-31 08/95 19.25 98
WOFC Western Ohio Fin. Corp. of OH OTC Western OH Thrift 372 D 10 12-31 07/94 25.50 60
HBEI Home Bancorp of Elgin IL OTC Northern IL Thrift 369 4 12-31 09/96 16.00 110
EFC EFC Bancorp Inc of IL AMEX Southeast IL Thrift 362 P 6 DEC 04/98 13.50 94
HBFW Home Bancorp of Fort Wayne IN OTC Northeast IN Thrift 353 9 09-30 03/95 31.88 75
FFFD North Central Bancshares of IA OTC Central IA Thrift 333 4 12-31 03/96 22.13 72
WFI Winton Financial Corp. of OH AMEX Cincinnati OH R.E. 324 S 5 09-30 08/88 16.44 66
WCBI WestCo Bancorp, Inc. of IL OTC Chicago IL Thrift 316 D 1 12-31 06/92 30.50 75
FSFF First SecurityFed Fin of IL OTC Chicago, IL Thrift 316 D 5 12-31 10/97 16.69 107
EFBI Enterprise Fed. Bancorp of OH OTC Cincinnati OH Thrift 301 D 5 09-30 10/94 28.00 62
PFDC Peoples Bancorp of Auburn IN OTC Northeastern IN Thrift 301 7 09-30 07/87 22.75 77
GFCO Glenway Financial Corp. of OH OTC Cincinnati OH Thrift 300 5 06-30 11/90 24.00 55
MFBC MFB Corp. of Mishawaka IN OTC Northern IN Thrift 291 5 09-30 03/94 26.50 44
CBK Citizens First Fin.Corp. of IL AMEX Central IL Thrift 280 7 12-31 05/96 20.13 51
FBCV 1st Bancorp of Vincennes IN OTC Southwestern IN M.B. 260 2 06-30 04/87 28.00 31
WAYN Wayne Svgs Bks MHC of OH (47.8 OTC Central OH Thrift 255 D 6 03-31 06/93 28.00 70
OHSL OHSL Financial Corp. of OH OTC Cincinnati, OH Thrift 251 5 12-31 02/93 17.25 43
GFED Guaranty Fed Bancshares of MO OTC Southwest MO Thrift 246 4 06-30 12/97 12.94 81
FFHS First Franklin Corp. of OH OTC Cincinnati OH Thrift 232 7 12-31 01/88 17.13 31
CAPS Capital Savings Bancorp of MO OTC Central MO Thrift 232 8 06-30 12/93 20.75 39
LARK Landmark Bancshares, Inc of KS OTC Central KS Thrift 231 5 09-30 03/94 27.13 45
EBI Equality Bancorp, Inc. of MO AMEX St Louis Thrift 229 D 3 03-31 12/97 13.31 33
MFFC Milton Fed. Fin. Corp. of OH OTC Southwest OH Thrift 227 3 09-30 10/94 16.13 36
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
June 16, 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)
- ------------------------------
MBLF MBLA Financial Corp. of MO OTC Northeast MO Thrift 224 D 2 06-30 06/93 24.13 30
HFBC HopFed Bancorp of KY OTC Southwest KY Thrift 221 5 09-30 02/98 20.38 82
CMRN Cameron Fin. Corp. of MO OTC Northwest MO Thrift 221 3 09-30 04/95 20.38 52
LSBI LSB Fin. Corp. of Lafayette IN OTC Central IN Thrift 216 4 12-31 02/95 30.00 29
FFBZ First Federal Bancorp of OH OTC Eastern OH Thrift 212 6 09-30 07/92 24.38 38
BFFC Big Foot Fin. Corp. of IL OTC Chicago IL Thrift 209 3 06-30 12/96 19.38 49
WEFC Wells Fin. Corp. of Wells MN OTC Southcentral MN Thrift 201 D 8 12-31 04/95 21.50 42
NEIB Northeast Indiana Bncrp of IN OTC Northeast IN Thrift 200 3 12-31 06/95 21.50 36
FFWC FFW Corporation of Wabash IN OTC Central IN Thrift 199 4 06-30 04/93 17.00 25
FFED Fidelity Fed. Bancorp of IN OTC Southwestern IN Thrift 197 4 06-30 08/87 7.38 23
PFED Park Bancorp of Chicago IL OTC Chicago IL Thrift 197 3 12-31 08/96 18.75 44
MARN Marion Capital Holdings of IN OTC Central IN Thrift 193 2 06-30 03/93 28.25 50
HMLK Hemlock Fed. Fin. Corp. of IL OTC Chicago IL Thrift 191 3 12-31 04/97 18.38 37
PULB Pulaski Bk,SB MHC of MO (29.8) OTC St. Louis MO Thrift 180 D 5 09-30 05/94 45.25 95
EGLB Eagle BancGroup of IL OTC Central IL Thrift 180 3 12-31 07/96 19.75 23
BWFC Bank West Fin. Corp. of MI OTC Southeast MI Thrift 180 3 06-30 03/95 14.38 38
FBSI First Bancshares, Inc. of MO OTC Southcentral MO Thrift 178 6 06-30 12/93 12.75 28
JXSB Jcksnville SB,MHC of IL (45.6) OTC Central IL Thrift 170 4 12-31 04/95 21.50 41
FFWD Wood Bancorp of OH OTC Northern OH Thrift 165 7 06-30 08/93 17.50 47
MWBI Midwest Bancshares, Inc. of IA OTC Southeast IA Thrift 159 4 12-31 11/92 15.75 16
SMBC Southern Missouri Bncrp of MO OTC Southeast MO Thrift 157 8 06-30 04/94 21.50 35
QCFB QCF Bancorp of Virginia MN OTC Northeast MN Thrift 153 D 2 06-30 04/95 30.25 41
MIFC Mid Iowa Financial Corp. of IA OTC Central IA Thrift 147 7 09-30 10/92 11.88 20
GTPS Great American Bancorp of IL OTC East Central IL Thrift 146 3 12-31 06/95 21.88 35
RIVR River Valley Bancorp of IN OTC Southeast IN Thrift 137 D 6 12-31 12/96 19.00 23
WEHO Westwood Hmstd Fin Corp of OH OTC Cincinnati OH Thrift 134 D 2 12-31 09/96 12.75 36
FKKY Frankfort First Bancorp of KY OTC Frankfort KY Thrift 133 3 06-30 07/95 16.25 26
CLAS Classic Bancshares, Inc. of KY OTC Eastern KY Thrift 133 D 3 03-31 12/95 14.88 19
PTRS Potters Financial Corp of OH OTC Northeast OH Thrift 127 4 12-31 12/93 18.75 18
FFSL First Independence Corp. of KS OTC Southeast KS Thrift 124 2 09-30 10/93 14.00 13
HFSA Hardin Bancorp of Hardin MO OTC Western MO Thrift 121 3 03-31 09/95 19.38 16
NBSI North Bancshares of Chicago IL OTC Chicago IL Thrift 118 2 12-31 12/93 16.25 21
CBES CBES Bancorp, Inc. of MO OTC Western MO Thrift 116 2 06-30 09/96 20.63 19
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
June 16, 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)
- ------------------------------
ASBP ASB Financial Corp. of OH OTC Southern OH Thrift 115 1 06-30 05/95 16.50 27
BDJI First Fed. Bancorp. of MN OTC Northern MN Thrift 113 5 09-30 04/95 19.25 19
DCBI Delphos Citizens Bancorp of OH OTC Northwest OH Thrift 113 1 09-30 11/96 20.50 39
FTNB Fulton Bancorp, Inc. of MO OTC Central MO Thrift 110 2 06-30 10/96 19.75 34
MONT Montgomery Fin. Corp. of IN OTC Westcentral IN Thrift 109 4 06-30 07/97 12.69 21
HFFB Harrodsburg 1st Fin Bcrp of KY OTC Central KY Thrift 109 2 09-30 10/95 16.25 32
UCBC Union Community Bancorp of IN OTC W.Central IN Thrift 108 1 12-31 12/97 14.88 45
AMFC AMB Financial Corp. of IN OTC Northwest IN Thrift 106 4 12-31 04/96 18.25 18
PSFC Peoples Sidney Fin. Corp of OH OTC WestCentral OH Thrift 106 1 06-30 04/97 24.38 44
CIBI Community Inv. Bancorp of OH OTC NorthCentral OH Thrift 102 3 06-30 02/95 20.50 18
FTSB Fort Thomas Fin. Corp. of KY OTC Northern KY Thrift 102 2 09-30 06/95 15.00 22
FFDF FFD Financial Corp. of OH OTC Northeast OH Thrift 100 1 06-30 04/96 23.50 34
NWEQ Northwest Equity Corp. of WI OTC Northwest WI Thrift 100 D 3 03-31 10/94 20.38 17
CNSB CNS Bancorp, Inc. of MO OTC Central MO Thrift 98 5 12-31 06/96 17.52 29
THR Three Rivers Fin. Corp. of MI AMEX Southwest MI Thrift 97 D 4 06-30 08/95 19.44 16
WCFB Wbstr Cty FSB MHC of IA (45.2) OTC Central IA Thrift 95 D 1 12-31 08/94 18.88 40
LXMO Lexington B&L Fin. Corp. of MO OTC West Central MO Thrift 95 1 09-30 06/96 15.88 18
HHFC Harvest Home Fin. Corp. of OH OTC Southwest OH Thrift 93 D 3 09-30 10/94 15.00 13
HZFS Horizon Fin'l. Services of IA OTC Central IA Thrift 93 3 06-30 06/94 16.88 15
SOBI Sobieski Bancorp of S. Bend IN OTC Northern IN Thrift 90 3 06-30 03/95 19.50 15
SFFC StateFed Financial Corp. of IA OTC Des Moines IA Thrift 90 2 06-30 01/94 14.38 22
LOGN Logansport Fin. Corp. of IN OTC Northern IN Thrift 89 1 12-31 06/95 17.25 22
PCBC Perry Co. Fin. Corp. of MO OTC EastCentral MO Thrift 86 1 09-30 02/95 23.38 19
PSFI PS Financial of Chicago IL OTC Chicago IL Thrift 84 1 12-31 11/96 13.13 27
PFFC Peoples Fin. Corp. of OH OTC Northeast OH Thrift 82 2 09-30 09/96 13.63 19
KYF Kentucky First Bancorp of KY AMEX Central KY Thrift 82 2 06-30 08/95 15.75 20
HLFC Home Loan Financial Corp of OH OTC Central Ohio Thrift 80 0 03/98 15.50 35
MSBF MSB Financial, Inc of MI OTC Southcentral MI Thrift 79 2 06-30 02/95 17.00 21
HCFC Home City Fin. Corp. of OH OTC Southwest OH Thrift 76 1 06-30 12/96 14.75 13
CKFB CKF Bancorp of Danville KY OTC Central KY Thrift 63 1 12-31 01/95 19.00 16
NSLB NS&L Bancorp, Inc of Neosho MO OTC Southwest MO Thrift 61 2 09-30 06/95 17.59 12
MRKF Market Fin. Corp. of OH OTC Cincinnati OH Thrift 58 2 09-30 03/97 13.88 19
FLKY First Lancaster Bncshrs of KY OTC Central KY Thrift 53 1 06-30 07/96 15.50 15
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
June 16, 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)
- ------------------------------
CSBF CSB Financial Group Inc of IL OTC Centralia IL Thrift 49 S 2 09-30 10/95 13.75 12
RELI Reliance Bancshares Inc of WI OTC Milwaukee WI Thrift 44 1 06-30 04/96 8.50 20
HWEN Home Financial Bancorp of IN OTC Central IN Thrift 41 1 06-30 07/96 9.13 8
JOAC Joachim Bancorp, Inc. of MO OTC Eastern MO Thrift 34 D 1 03-31 12/95 17.00 12
New England Companies
- ---------------------
PBCT Peoples Bank, MHC of CT (40.1) (3) OTC Southwestern CT Div. 9,150 111 12-31 07/88 38.06 2,439
PHBK Peoples Heritage Fin Grp of ME (3) OTC ME,NH,MA Div. 7,310 141 12-31 12/86 23.56 1,311
WBST Webster Financial Corp. of CT OTC Central CT Thrift 7,020 D 84 12-31 12/86 32.88 901
SISB SIS Bancorp, Inc. of MA (3) OTC Central MA Div. 1,794 25 12-31 02/95 41.13 287
BRKL Brookline Bncp MHC of MA(47.0) OTC Brookline Thrift 1,451 P 5 08-31 03/98 16.31 475
ANDB Andover Bancorp, Inc. of MA (3) OTC MA,NH M.B. 1,386 12 12-31 05/86 34.13 221
FESX First Essex Bancorp of MA (3) OTC MA,NH Div. 1,293 15 12-31 08/87 22.63 171
FAB FirstFed America Bancorp of MA AMEX MA,RI M.B. 1,160 D 13 03-31 01/97 20.25 176
AFCB Affiliated Comm BC, Inc of MA OTC MA Thrift 1,141 12 12-31 10/95 38.34 252
MDBK Medford Bancorp, Inc. of MA (3) OTC Eastern MA Thrift 1,120 16 12-31 03/86 41.63 189
BFD BostonFed Bancorp of MA AMEX Boston MA M.B. 1,032 10 12-31 10/95 23.50 127
DIBK Dime Financial Corp. of CT (3) OTC Central CT Thrift 1,016 11 12-31 07/86 34.63 182
FFES First Fed of E. Hartford CT OTC Central CT Thrift 991 12 12-31 06/87 36.50 99
MECH MECH Financial Inc of CT (3) OTC Hartford CT Thrift 946 14 12-31 06/96 28.88 153
MASB MassBank Corp. of Reading MA (3) OTC Eastern MA Thrift 929 15 12-31 05/86 51.00 183
PBKB People's Bancshares of MA (3) OTC Southeastern MA Thrift 862 14 12-31 10/86 26.19 87
NSSY NSS Bancorp of CT (3) OTC Southwest CT Thrift 669 8 12-31 06/94 43.25 103
BKC American Bank of Waterbury CT (3) AMEX Western CT Thrift 651 14 12-31 12/81 27.63 129
MWBX MetroWest Bank of MA (3) OTC Eastern MA Thrift 647 12 12-31 10/86 7.75 110
ABBK Abington Bancorp of MA (3) OTC Southeastern MA M.B. 550 8 12-31 06/86 18.50 66
SOSA Somerset Savings Bank of MA (3) OTC Eastern MA R.E. 533 5 12-31 07/86 5.06 85
SWCB Sandwich Bancorp of MA (3) OTC Southeastern MA Thrift 527 11 12-31 07/86 64.00 125
BKCT Bancorp Connecticut of CT (3) OTC Central CT Thrift 480 3 12-31 07/86 20.13 103
WRNB Warren Bancorp of Peabody MA (3) OTC Eastern MA R.E. 371 D 6 12-31 07/86 12.00 92
NMSB Newmil Bancorp, Inc. of CT (3) OTC Western CT Thrift 370 15 06-30 02/86 13.25 51
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
June 16, 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)
- ---------------------------------
CEBK Central Co-Op. Bank of MA (3) OTC Eastern MA Thrift 367 D 8 03-31 10/86 27.88 55
LSBX Lawrence Savings Bank of MA (3) OTC Northeastern MA Thrift 355 5 12-31 05/86 15.63 67
NHTB NH Thrift Bancshares of NH OTC Central NH Thrift 321 10 12-31 05/86 19.50 41
BYS Bay State Bancorp of MA (3) NYSE Brookline Thrift 290 P 0 DEC 03/98 27.75 70
NBN Northeast Bancorp of ME (3) AMEX Eastern ME Thrift 279 D 11 06-30 08/87 16.25 36
ANE Alliance Bncp of New Eng of CT (3) AMEX Northern CT Thrift 247 7 12-31 12/86 15.13 38
IPSW Ipswich SB of Ipswich MA (3) OTC Northwest MA Thrift 238 6 12-31 05/93 17.13 41
HIFS Hingham Inst. for Sav. of MA (3) OTC Eastern MA Thrift 232 5 12-31 12/88 35.00 46
HPBC Home Port Bancorp, Inc. of MA (3) OTC Southeastern MA Thrift 226 2 12-31 08/88 26.75 49
MYST Mystic Financial of MA (3) OTC Medford Thrift 188 3 06-30 01/98 15.25 41
FCME First Coastal Corp. of ME (3) OTC Southern ME Thrift 150 7 12-31 / 14.00 19
KSBK KSB Bancorp of Kingfield ME (3) OTC Western ME M.B. 150 S 8 12-31 06/93 19.00 24
MFLR Mayflower Co-Op. Bank of MA (3) OTC Southeastern MA Thrift 132 D 4 04-30 12/87 23.75 21
NTMG Nutmeg FS&LA of CT OTC Eastern CT M.B. 112 3 12-31 / 10.88 11
FCB Falmouth Bancorp, Inc. of MA (3) AMEX Southeast MA Thrift 105 2 09-30 03/96 20.00 29
MCBN Mid-Coast Bancorp of ME OTC Eastern ME Thrift 63 2 03-31 11/89 12.00 9
North-West Companies
- --------------------
WAMU Washington Mutual, Inc. of WA (3) OTC CA,WA,FL,OR,UT Div. 96,983 D 914 12-31 03/83 46.50 17,988
WFSL Washington Federal, Inc. of WA OTC Western US Thrift 5,713 D 104 09-30 11/82 28.25 1,480
IWBK Interwest Bancorp of WA OTC Western WA Div. 2,091 39 09-30 / 47.00 396
STSA Sterling Financial Corp. of WA OTC WA,OR M.B. 1,888 41 12-31 / 25.88 197
FWWB First Savings Bancorp of WA OTC Central WA Thrift 1,137 D 20 03-31 11/95 25.00 254
KFBI Klamath First Bancorp of OR OTC Southern OR Thrift 994 33 09-30 10/95 19.38 193
HRZB Horizon Financial Corp. of WA (3) OTC Northwest WA Thrift 547 12 03-31 08/86 17.50 131
FMSB First Mutual SB of Bellevue WA (3) OTC Western WA M.B. 451 S 8 12-31 12/85 17.00 71
CASB Cascade Financial Corp. of WA OTC Seattle WA Thrift 435 11 06-30 09/92 19.25 65
HFWA Heritage Financial Corp of WA OTC NW Washington Thrift 323 10 06-30 01/98 14.88 145
RVSB Riverview Bancorp of WA OTC Southwest WA Thrift 273 9 03-31 10/97 16.75 103
TSBK Timberland Bancorp of WA OTC Grays Harbor Thrift 261 5 06-30 01/98 16.88 103
OTFC Oregon Trail Fin. Corp. of OR OTC Baker City Thrift 257 D 7 03-31 10/97 16.63 72
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
June 16, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ----- ------
($Mil) ($) ($Mil)
North-West Companies (continued)
- --------------------------------
FBNW FirstBank Corp of Clarkston WA OTC West. WA/East ID Thrift 184 5 03-31 07/97 20.75 41
EFBC Empire Federal Bancorp of MT OTC Southern MT Thrift 110 D 3 12-31 01/97 16.63 43
South-East Companies
- --------------------
BNKU Bank United Corp. of TX OTC TX,AZ Thrift 13,109 71 09-30 08/96 50.63 1,600
FFCH First Fin. Holdings Inc. of SC OTC Charleston SC Div. 1,858 34 09-30 11/83 23.00 313
FLFC First Liberty Fin. Corp. of GA OTC Georgia M.B. 1,275 D 31 09-30 12/83 23.88 278
HFNC HFNC Financial Corp. of NC OTC Charlotte NC Thrift 979 10 06-30 12/95 12.31 212
EBSI Eagle Bancshares of Tucker GA OTC Atlanta GA Thrift 934 D 14 03-31 04/86 23.63 135
CNIT Cenit Bancorp of Norfolk VA OTC Southeastern VA Thrift 734 19 12-31 08/92 23.25 116
FCBK First Coastal Bankshares of VA OTC Southeast VA M.B. 625 14 12-31 11/80 17.94 89
CFCP Coastal Fin. Corp. of SC OTC South Carolina Thrift 583 9 09-30 09/90 20.00 125
FFBH First Fed. Bancshares of AR OTC Northern AR Thrift 570 13 12-31 05/96 27.38 134
FSPT FirstSpartan Fin. Corp. of SC OTC Northwestern SC Thrift 503 7 06-30 07/97 44.50 197
TSH Teche Holding Company of LA AMEX Southern LA Thrift 407 9 09-30 04/95 19.63 68
PFSL Pocahontas Bancorp of AR OTC Northeast AR Thrift 401 6 09-30 04/98 9.88 66
COOP Cooperative Bancshares of NC OTC Eastern NC Thrift 381 16 12-31 08/91 18.00 54
CAVB Cavalry Bancorp of TN OTC Murfreesburg Thrift 351 0 Sept 03/98 22.50 170
FSTC First Citizens Corp of GA OTC Western GA M.B. 337 S 9 03-31 03/86 31.00 86
HBSC Heritage Bancorp, Inc of SC OTC Laurens Thrift 312 P 4 Sept 04/98 20.50 95
UFRM United FSB of Rocky Mount NC OTC Eastern NC M.B. 306 13 12-31 07/80 18.00 59
SOPN First Svgs Bancorp of NC OTC Central NC Thrift 300 5 06-30 01/94 23.25 86
ANA Acadiana Bancshares, Inc of LA AMEX Southern LA Thrift 293 5 12-31 07/96 23.38 60
CFTP Community Fed. Bancorp of MS OTC Northeast MS Thrift 254 2 09-30 03/96 17.50 79
FLAG Flag Financial Corp of GA OTC Western GA M.B. 248 D 4 12-31 12/86 18.50 85
SSFC South Street Fin. Corp. of NC (3) OTC South Central NC Thrift 217 2 09-30 10/96 9.75 46
HCBB HCB Bancshares of Camden AR OTC Southern AR Thrift 205 D 7 06-30 05/97 15.13 40
ESX Essex Bancorp of Norfolk VA AMEX VA,NC M.B. 193 4 12-31 07/90 3.63 4
FTF Texarkana Fst. Fin. Corp of AR AMEX Southwest AR Thrift 185 5 09-30 07/95 29.75 52
CFFC Community Fin. Corp. of VA OTC Central VA Thrift 183 D 4 03-31 03/88 15.50 40
FFDB FirstFed Bancorp, Inc. of AL OTC Central AL Thrift 179 D 8 03-31 11/91 25.00 29
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
June 16, 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)
- --------------------------------
GSFC Green Street Fin. Corp. of NC OTC Southern NC Thrift 178 3 09-30 04/96 16.38 70
FGHC First Georgia Hold. Corp of GA OTC Southeastern GA Thrift 176 7 09-30 02/87 13.25 42
GBNK Gaston Fed Bncp MHC of NC(47.0 OTC Southwest NC Thrift 171 P 4 9-30 04/98 15.75 71
SZB SouthFirst Bancshares of AL AMEX Central AL Thrift 162 2 09-30 02/95 19.50 19
BFSB Bedford Bancshares, Inc. of VA OTC Southern VA Thrift 153 3 09-30 08/94 29.00 33
HBS Haywood Bancshares, Inc. of NC (3) AMEX Northwest NC Thrift 152 4 12-31 12/87 22.75 28
CCFH CCF Holding Company of GA OTC Atlanta GA Thrift 143 5 12-31 07/95 22.00 20
PDB Piedmont Bancorp, Inc. of NC AMEX Central NC Thrift 133 1 06-30 12/95 9.63 26
GSLA GS Financial Corp. of LA OTC New Orleans LA Thrift 129 3 12-31 04/97 17.38 58
CFNC Carolina Fincorp of NC (3) OTC Southcentral NC Thrift 118 4 06-30 11/96 16.94 32
SBAN SouthBanc Shares Inc. of SC OTC Northwest SC Thrift 117 P 6 09-30 04/98 19.56 30
SSM Stone Street Bancorp of NC AMEX Central NC Thrift 111 2 12-31 04/96 19.94 38
TWIN Twin City Bancorp, Inc. of TN OTC Northeast TN Thrift 110 3 12-31 01/95 13.75 17
SRN Southern Banc Company of AL AMEX Northeast AL Thrift 106 S 4 06-30 10/95 16.13 20
CENB Century Bancorp, Inc. of NC OTC Charlotte NC Thrift 104 1 06-30 12/96 20.25 26
PEDE Great Pee Dee Bancorp of SC OTC Northeast SC Thrift 79 P 1 06-30 12/97 15.50 34
UTBI United Tenn. Bancshares of TN OTC Eastern TN Thrift 75 2 12-31 01/98 14.88 22
SCBS Southern Commun. Bncshrs of AL OTC NorthCentral AL Thrift 71 S 1 09-30 12/96 17.25 20
SSB Scotland Bancorp, Inc. of NC AMEX S. Central NC Thrift 61 2 09-30 04/96 9.00 17
SCCB S. Carolina Comm. Bnshrs of SC OTC Central SC Thrift 46 3 06-30 07/94 21.75 13
MBSP Mitchell Bancorp, Inc. of NC OTC Western NC Thrift 37 1 06-30 07/96 16.75 16
South-West Companies
- --------------------
CBSA Coastal Bancorp of Houston TX OTC Houston TX M.B. 2,966 37 12-31 / 38.94 196
FBHC Fort Bend Holding Corp. of TX OTC Eastcentral TX M.B. 303 D 6 03-31 06/93 23.75 40
JXVL Jacksonville Bancorp of TX OTC East Central TX Thrift 237 6 09-30 04/96 20.75 51
ETFS East Texas Fin. Serv. of TX OTC Northeast TX Thrift 121 2 09-30 01/95 15.75 24
GUPB GFSB Bancorp, Inc of Gallup NM OTC Northwest NM Thrift 118 1 06-30 06/95 15.50 19
AABC Access Anytime Bancorp of NM OTC Eastern NM Thrift 114 3 12-31 08/86 11.50 14
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
June 16, 1998(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ----- ------
($Mil) ($) ($Mil)
FFBA First Colorado Bancorp of CO OTC Colorado Thrift 1,555 D 27 12-31 01/96 28.63 482
WSTR WesterFed Fin. Corp. of MT OTC Montana Thrift 1,035 D 36 06-30 01/94 24.88 139
UBMT United Fin. Corp. of MT OTC Central MT Thrift 96 D 4 12-31 09/86 27.88 47
HCBC High Country Bancorp of CO OTC Salida Thrift 92 2 12-31 12/97 15.00 20
TRIC Tri-County Bancorp of WY OTC Southeastern WY Thrift 89 2 12-31 09/93 14.75 17
CRZY Crazy Woman Creek Bncorp of WY OTC Northeast WY Thrift 62 1 09-30 03/96 17.75 17
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.
(3) FDIC savings bank.
Source: Corporate offering circulars, SNL Securities Quarterly Thrift Report,
and financial reports of publicly Traded Thrifts.
Date of Last Update: 06/16/98
EXHIBIT III-2
Cortland Savings Bank
New York Savings 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 June 5, 1998
Market
Capitalization Per Share Data Pricing Ratios(3)
--------------- --------------- -------------------------------------
Core Book
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
- --------------------- -------- ------- ------- ------- ----- ------ ----- ------ ------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
SAIF-Insured Thrifts 21.84 174.72 0.96 13.81 20.15 160.44 20.63 166.60 20.81
BIF-Insured Thrifts 24.92 628.84 1.21 13.40 18.56 193.05 20.50 191.24 19.53
State of NY 26.86 552.47 1.12 15.80 21.64 168.90 21.83 178.56 22.29
Comparable Group
- ----------------
State of NY
- -----------
AFED AFSALA Bancorp, Inc. of NY(7) 19.75 27.22 0.89 14.58 22.19 135.46 16.97 135.46 22.19
ALBK ALBANK Fin. Corp. of Albany NY 52.38 673.24 3.38 28.54 15.32 183.53 16.46 234.68 15.50
ALBC Albion Banc Corp. of Albion NY 9.50 7.14 0.43 8.28 21.11 114.73 9.80 114.73 22.09
AHCI Ambanc Holding Co., Inc. of NY 18.63 79.33 0.48 14.27 NM 130.55 15.26 130.55 NM
- ------------------------------------------------------------------------------------------------------------------
ASFC Astoria Financial Corp. of NY 54.31 1431.94 2.52 32.88 19.82 165.18 13.14 233.39 21.55
CNY Carver Bancorp, Inc. of NY 13.31 30.80 0.03 15.24 NM 87.34 7.41 90.79 NM
CATB Catskill Fin. Corp. of NY 17.38 77.53 0.85 15.54 20.21 111.84 26.20 111.84 20.45
- ------------------------------------------------------------------------------------------------------------------
DME Dime Bancorp, Inc. of NY 30.13 3442.59 1.03 11.37 23.54 265.00 15.63 323.63 29.25
DIME Dime Community Bancorp of NY 29.00 360.76 0.89 15.22 NM 190.54 22.87 219.03 NM
ESBK Elmira Svgs Bank (The) of NY 29.25 21.26 1.47 19.63 21.04 149.01 9.26 149.01 19.90
- ------------------------------------------------------------------------------------------------------------------
FIBC Financial Bancorp, Inc. of NY 27.50 46.94 1.58 16.43 16.98 167.38 15.12 168.09 17.41
FFIC Flushing Fin. Corp. of NY 26.50 207.44 1.14 17.52 23.45 151.26 19.23 157.27 23.25
GOSB GSB Financial Corp. of NY 17.13 38.51 0.37 14.88 NM 115.12 32.40 115.12 NM
- ------------------------------------------------------------------------------------------------------------------
GPT GreenPoint Fin. Corp. of NY 40.94 3458.16 1.74 15.15 24.37 270.23 26.14 NM 23.53
HAVN Haven Bancorp of Woodhaven NY 26.88 237.51 1.11 12.91 24.00 208.21 11.77 208.70 24.22
ICBC Independence Comm Bnk Cp of NY 16.81 1183.61 0.49 12.55 NM 133.94 29.07 143.06 NM
JSB JSB Financial, Inc. of NY 58.44 577.56 2.64 35.96 19.68 162.51 37.72 162.51 22.14
LISB Long Island Bancorp, Inc of NY(7) 61.50 1471.94 1.77 23.55 28.08 261.15 23.38 263.38 NM
NBCP Niagara Bancorp of NY MHC(45.4 14.56 196.59 0.58 12.71 25.10 114.56 13.78 114.56 25.10
PBHC Pathfinder BC MHC of NY (46.1) 22.25 19.62 0.50 8.15 NM 273.01 32.11 322.00 NM
PEEK Peekskill Fin. Corp. of NY 18.00 54.31 0.65 14.92 28.57 120.64 27.73 120.64 27.69
- ------------------------------------------------------------------------------------------------------------------
PSBK Progressive Bank, Inc. of NY(7) 42.00 161.95 2.23 20.68 18.92 203.09 18.07 222.58 18.83
QCSB Queens County Bancorp of NY 44.44 663.13 1.48 11.36 29.63 NM 40.87 NM NM
RELY Reliance Bancorp, Inc. of NY 39.25 377.90 2.04 20.13 20.34 194.98 17.34 282.58 19.24
RCBK Richmond County Fin Corp of NY 18.50 488.84 0.74 12.21 NM 151.52 33.39 152.14 25.00
RSLN Roslyn Bancorp, Inc. of NY 22.13 947.65 0.99 14.51 21.49 152.52 25.57 153.25 22.35
SBFL SB Fngr Lakes MHC of NY (33.1) 19.63 23.20 0.22 6.10 NM 321.80 27.94 321.80 NM
SFED SFS Bancorp of Schenectady NY 22.00 26.58 0.89 17.95 23.91 122.56 15.15 122.56 24.72
- ------------------------------------------------------------------------------------------------------------------
SKAN Skaneateles Bancorp Inc of NY 17.50 25.20 1.09 12.48 15.63 140.22 9.78 143.91 16.06
- ------------------------------------------------------------------------------------------------------------------
SIB Staten Island Bancorp of NY 21.44 967.59 0.79 15.51 NM 138.23 36.22 141.89 27.14
ROSE T R Financial Corp. of NY 42.25 740.64 1.85 14.05 20.22 300.71 18.49 300.71 22.84
TPNZ Tappan Zee Fin., Inc. of NY(7) 20.13 29.75 0.67 14.56 28.76 138.26 23.52 138.26 NM
WSBI Warwick Community Bncrp of NY 16.88 111.53 0.55 12.60 NM 133.97 31.84 133.97 NM
YFCB Yonkers Fin. Corp. of NY 18.94 57.12 1.01 14.90 18.39 127.11 17.22 127.11 18.75
Dividends(4) Financial Characteristics(6)
----------------------- -------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ ------------- -------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- ----- ----- -------- ------ ------ ------ ----- ------ ----- -----
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
SAIF-Insured Thrifts 0.35 1.64 31.79 1,058 13.89 0.67 0.93 7.95 0.88 7.48
BIF-Insured Thrifts 0.40 1.53 31.00 3,341 11.56 0.64 1.05 10.76 1.01 10.16
State of NY 0.39 1.28 29.50 2,768 13.53 0.77 0.83 7.12 0.88 7.28
Comparable Group
- ----------------
State of NY
- -----------
AFED AFSALA Bancorp, Inc. of NY(7) 0.28 1.42 31.46 160 12.52 0.37 0.78 5.89 0.78 5.89
ALBK ALBANK Fin. Corp. of Albany NY 0.84 1.60 24.85 4,089 8.97 0.92 1.16 12.76 1.14 12.61
ALBC Albion Banc Corp. of Albion NY 0.12 1.26 27.91 73 8.54 0.55 0.48 5.58 0.46 5.33
AHCI Ambanc Holding Co., Inc. of NY 0.24 1.29 50.00 520 11.69 0.62 0.51 4.18 0.41 3.34
- ------------------------------------------------------------------------------------------------------------------------
ASFC Astoria Financial Corp. of NY 0.80 1.47 31.75 10,895 7.96 0.54 0.81 10.29 0.74 9.46
CNY Carver Bancorp, Inc. of NY 0.00 0.00 0.00 416 8.48 NA -0.11 -1.33 0.02 0.20
CATB Catskill Fin. Corp. of NY 0.32 1.84 37.65 296 23.42 0.29 1.33 5.36 1.32 5.30
- ------------------------------------------------------------------------------------------------------------------------
DME Dime Bancorp, Inc. of NY 0.20 0.66 19.42 22,024 5.90 1.03 0.72 12.65 0.58 10.18
DIME Dime Community Bancorp of NY 0.36 1.24 40.45 1,577 12.01 0.48 0.83 6.19 0.79 5.86
ESBK Elmira Svgs Bank (The) of NY 0.64 2.19 43.54 230 6.21 0.68 0.44 7.04 0.47 7.45
- ------------------------------------------------------------------------------------------------------------------------
FIBC Financial Bancorp, Inc. of NY 0.50 1.82 31.65 310 9.04 2.19 0.94 10.24 0.92 9.99
FFIC Flushing Fin. Corp. of NY 0.32 1.21 28.07 1,078 12.72 0.31 0.92 6.57 0.93 6.63
GOSB GSB Financial Corp. of NY 0.00 0.00 0.00 119 28.14 0.10 0.73 3.54 0.69 3.36
- ------------------------------------------------------------------------------------------------------------------------
GPT GreenPoint Fin. Corp. of NY 0.64 1.56 36.78 13,228 9.67 2.73 1.08 10.71 1.11 11.10
HAVN Haven Bancorp of Woodhaven NY 0.30 1.12 27.03 2,018 5.65 0.57 0.53 9.11 0.53 9.03
ICBC Independence Comm Bnk Cp of NY 0.00 0.00 0.00 4,072 21.70 0.70 0.64 2.95 0.85 3.90
JSB JSB Financial, Inc. of NY 1.60 2.74 60.61 1,531 23.21 NA 1.92 8.59 1.71 7.64
LISB Long Island Bancorp, Inc of NY(7) 0.60 0.98 33.90 6,296 8.95 0.86 0.87 9.63 0.71 7.78
NBCP Niagara Bancorp of NY MHC(45.4 0.00 0.00 0.00 3,145 12.03 0.25 0.55 4.56 0.55 4.56
PBHC Pathfinder BC MHC of NY (46.1) 0.20 0.90 12.46 196 11.76 1.33 0.91 7.74 0.73 6.24
PEEK Peekskill Fin. Corp. of NY 0.36 2.00 55.38 196 22.99 0.89 1.03 4.09 1.06 4.22
- ------------------------------------------------------------------------------------------------------------------------
PSBK Progressive Bank, Inc. of NY(7) 0.80 1.90 35.87 896 8.90 0.76 0.97 11.15 0.97 11.20
QCSB Queens County Bancorp of NY 1.00 2.25 67.57 1,622 10.45 0.55 1.47 12.54 1.45 12.37
RELY Reliance Bancorp, Inc. of NY 0.72 1.83 35.29 2,180 8.89 NA 0.90 10.66 0.95 11.27
RCBK Richmond County Fin Corp of NY 0.20 1.08 27.03 1,464 22.04 0.47 0.19 1.11 1.53 9.09
RSLN Roslyn Bancorp, Inc. of NY 0.34 1.54 34.34 3,706 16.76 0.25 1.31 7.08 1.26 6.81
SBFL SB Fngr Lakes MHC of NY (33.1) 0.24 1.22 NM 251 8.68 0.27 0.40 4.39 0.34 3.72
SFED SFS Bancorp of Schenectady NY 0.32 1.45 35.96 175 12.36 0.72 0.64 5.13 0.62 4.96
- ------------------------------------------------------------------------------------------------------------------------
SKAN Skaneateles Bancorp Inc of NY 0.28 1.60 25.69 258 6.98 2.01 0.64 9.32 0.63 9.07
- ------------------------------------------------------------------------------------------------------------------------
SIB Staten Island Bancorp of NY 0.28 1.31 35.44 2,671 26.20 0.85 0.86 5.00 1.59 9.19
ROSE T R Financial Corp. of NY 0.72 1.70 38.92 4,006 6.15 0.57 0.99 15.97 0.88 14.13
TPNZ Tappan Zee Fin., Inc. of NY(7) 0.28 1.39 41.79 126 17.02 1.24 0.84 4.86 0.81 4.65
WSBI Warwick Community Bncrp of NY 0.00 0.00 0.00 350 23.76 0.52 1.04 4.37 1.04 4.37
YFCB Yonkers Fin. Corp. of NY 0.28 1.48 27.72 332 13.54 0.41 1.05 7.10 1.03 6.96
(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.
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 III-3
Cortland Savings Bank
Selected Ohio Savings Institutions
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-3
Market Pricing Comparatives
Prices As of June 5, 1998
Market
Capitalization Per Share Data Pricing Ratios(3)
---------------- -------------- -------------------------------------
Core Book
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
- --------------------- -------- ------ ------ ----- ----- ------ ----- ----- ------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
SAIF-Insured Thrifts 21.84 174.72 0.96 13.81 20.15 160.44 20.63 166.60 20.81
BIF-Insured Thrifts 24.92 628.84 1.21 13.40 18.56 193.05 20.50 191.24 19.53
State of OH 20.36 195.71 0.84 12.44 20.58 174.40 22.23 177.96 21.70
Comparable Group
- ----------------
State of OH
- -----------
ASBP ASB Financial Corp. of OH 16.50 26.98 0.65 10.68 25.00 154.49 23.48 154.49 25.38
CAFI Camco Fin. Corp. of OH 29.50 107.56 1.34 15.62 16.67 188.86 18.69 201.23 22.01
COFI Charter One Financial of OH 35.50 4548.83 1.57 11.19 NM 317.25 23.38 338.42 22.61
CTZN CitFed Bancorp of Dayton OH(7) 49.25 644.53 2.24 16.89 22.29 291.59 18.24 316.52 21.99
CIBI Community Inv. Bancorp of OH 20.50 18.25 1.02 12.56 20.10 163.22 17.93 163.22 20.10
DCBI Delphos Citizens Bancorp of OH 20.50 39.03 0.91 14.76 22.53 138.89 34.66 138.89 22.53
- ------------------------------------------------------------------------------------------------------------------
EMLD Emerald Financial Corp. of OH 13.25 135.97 0.59 4.96 20.70 267.14 22.08 270.96 22.46
EFBI Enterprise Fed. Bancorp of OH 28.00 61.91 0.90 14.65 28.28 191.13 20.55 191.26 NM
FFDF FFD Financial Corp. of OH 23.50 33.96 0.49 15.43 21.56 152.30 33.92 152.30 NM
FFYF FFY Financial Corp. of OH 32.88 133.33 1.90 20.82 17.04 157.93 20.68 157.93 17.31
FFOH Fidelity Financial of OH 17.38 97.24 0.84 11.64 19.98 149.31 17.99 168.57 20.69
FDEF First Defiance Fin.Corp. of OH 14.94 121.36 0.63 12.54 22.64 119.14 21.02 119.14 23.71
FFBZ First Federal Bancorp of OH 24.38 38.40 1.15 10.24 21.02 238.09 18.14 238.32 21.20
FFHS First Franklin Corp. of OH 17.13 30.63 0.91 12.01 16.31 142.63 13.18 143.35 18.82
CASH First Midwest Fin., Inc. of OH 23.25 61.52 0.77 15.92 26.42 146.04 15.17 164.19 NM
GFCO Glenway Financial Corp. of OH 24.00 54.77 1.10 12.60 21.62 190.48 18.23 192.15 21.82
HHFC Harvest Home Fin. Corp. of OH 15.00 13.37 0.66 11.62 19.74 129.09 14.35 129.09 22.73
HCFC Home City Fin. Corp. of OH 14.75 13.35 1.02 15.68 14.46 94.07 17.48 94.07 14.46
HLFC Home Loan Financial Corp of OH 15.50 34.84 0.37 13.82 NM 112.16 43.67 112.16 NM
INBI Industrial Bancorp of OH 19.25 97.75 1.03 12.14 18.69 158.57 26.13 158.57 18.69
MRKF Market Fin. Corp. of OH 13.88 18.54 0.48 15.25 28.92 91.02 32.11 91.02 28.92
METF Metropolitan Fin. Corp. of OH 15.00 105.77 0.82 5.42 16.13 276.75 10.69 299.40 18.29
MFFC Milton Fed. Fin. Corp. of OH 16.13 36.08 0.56 11.50 25.60 140.26 15.92 140.26 28.80
OHSL OHSL Financial Corp. of OH 17.25 42.95 0.76 10.64 21.04 162.12 17.10 162.12 22.70
PVFC PVF Capital Corp. of OH 26.50 70.49 1.83 11.34 13.66 233.69 16.83 233.69 14.48
PFFC Peoples Fin. Corp. of OH 13.63 19.31 0.29 11.11 18.17 122.68 23.49 122.68 NM
PSFC Peoples Sidney Fin. Corp of OH 24.38 43.52 0.71 14.87 NM 163.95 41.24 163.95 NM
- ------------------------------------------------------------------------------------------------------------------
PTRS Potters Financial Corp of OH 18.75 18.13 0.98 11.40 18.56 164.47 14.32 164.47 19.13
SFSL Security First Corp. of OH(7) 25.00 188.88 1.23 8.56 20.33 292.06 27.55 296.21 20.33
WAYN Wayne Svgs Bks MHC of OH (47.8 28.00 30.10 0.71 9.74 NM 287.47 27.26 287.47 NM
WOFC Western Ohio Fin. Corp. of OH 25.50 59.98 0.14 23.21 NM 109.87 16.12 117.57 NM
WEHO Westwood Hmstd Fin Corp of OH 12.75 36.25 0.49 10.60 NM 120.28 27.00 120.28 26.02
- ------------------------------------------------------------------------------------------------------------------
WFI Winton Financial Corp. of OH 16.44 65.99 0.66 5.80 20.55 283.45 20.34 289.44 24.91
FFWD Wood Bancorp of OH 17.50 46.59 0.76 8.18 19.66 213.94 28.23 213.94 23.03
Dividends(4) Financial Characteristics(6)
---------------------- ------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ ------------- -------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- ----- ----- ------- ------ ------ ------ ----- ----- ----- -----
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
SAIF-Insured Thrifts 0.35 1.64 31.79 1,058 13.89 0.67 0.93 7.95 0.88 7.48
BIF-Insured Thrifts 0.40 1.53 31.00 3,341 11.56 0.64 1.05 10.76 1.01 10.16
State of OH 0.40 1.97 39.07 888 14.46 0.42 1.01 8.44 0.93 7.83
Comparable Group
- ----------------
State of OH
- -----------
ASBP ASB Financial Corp. of OH 0.40 2.42 61.54 115 15.20 0.14 0.96 6.17 0.94 6.08
CAFI Camco Fin. Corp. of OH 0.58 1.97 43.28 576 9.89 0.68 1.26 13.08 0.95 9.90
COFI Charter One Financial of OH 0.56 1.58 35.67 19,457 7.37 0.38 0.87 12.46 1.21 17.31
CTZN CitFed Bancorp of Dayton OH(7) 0.36 0.73 16.07 3,533 6.26 0.32 0.89 14.17 0.90 14.36
CIBI Community Inv. Bancorp of OH 0.32 1.56 31.37 102 10.99 0.56 0.94 8.15 0.94 8.15
DCBI Delphos Citizens Bancorp of OH 0.00 0.00 0.00 113 24.95 0.56 1.60 5.91 1.60 5.91
- ----------------------------------------------------------------------------------------------------------------------
EMLD Emerald Financial Corp. of OH 0.14 1.06 23.73 616 8.27 0.38 1.09 13.88 1.00 12.80
EFBI Enterprise Fed. Bancorp of OH 1.00 3.57 NM 301 10.75 0.01 0.81 6.91 0.74 6.28
FFDF FFD Financial Corp. of OH 0.30 1.28 61.22 100 22.27 0.08 1.73 7.25 0.78 3.26
FFYF FFY Financial Corp. of OH 0.80 2.43 42.11 645 13.10 0.53 1.28 9.36 1.26 9.21
FFOH Fidelity Financial of OH 0.32 1.84 38.10 540 12.05 0.18 0.92 7.30 0.89 7.05
FDEF First Defiance Fin.Corp. of OH 0.36 2.41 57.14 577 17.64 0.31 0.95 4.82 0.90 4.60
FFBZ First Federal Bancorp of OH 0.28 1.15 24.35 212 7.62 0.46 0.90 11.79 0.89 11.69
FFHS First Franklin Corp. of OH 0.27 1.58 29.67 232 9.24 0.49 0.82 9.03 0.71 7.82
CASH First Midwest Fin., Inc. of OH 0.48 2.06 62.34 405 10.39 1.11 0.59 5.41 0.52 4.73
GFCO Glenway Financial Corp. of OH 0.44 1.83 40.00 300 9.57 0.19 0.86 9.12 0.86 9.04
HHFC Harvest Home Fin. Corp. of OH 0.44 2.93 66.67 93 11.12 0.23 0.77 6.53 0.67 5.67
HCFC Home City Fin. Corp. of OH 0.36 2.44 35.29 76 18.58 0.65 1.29 6.57 1.29 6.57
HLFC Home Loan Financial Corp of OH 0.00 0.00 0.00 80 38.94 0.44 1.30 5.70 1.30 5.70
INBI Industrial Bancorp of OH 0.60 3.12 58.25 374 16.48 0.25 1.48 8.53 1.48 8.53
MRKF Market Fin. Corp. of OH 0.28 2.02 58.33 58 35.28 0.33 1.13 3.21 1.13 3.21
METF Metropolitan Fin. Corp. of OH 0.00 0.00 0.00 990 3.86 0.92 0.74 18.94 0.66 16.70
MFFC Milton Fed. Fin. Corp. of OH 0.60 3.72 NM 227 11.35 0.28 0.68 5.39 0.61 4.79
OHSL OHSL Financial Corp. of OH 0.50 2.90 65.79 251 10.55 0.17 0.86 7.92 0.80 7.34
PVFC PVF Capital Corp. of OH 0.00 0.00 0.00 419 7.20 0.69 1.34 18.73 1.26 17.66
PFFC Peoples Fin. Corp. of OH 0.60 4.40 NM 82 19.15 0.01 1.29 6.79 0.50 2.63
PSFC Peoples Sidney Fin. Corp of OH 0.28 1.15 39.44 106 25.15 1.10 1.24 5.56 1.24 5.56
- ----------------------------------------------------------------------------------------------------------------------
PTRS Potters Financial Corp of OH 0.24 1.28 24.49 127 8.71 0.13 0.80 9.05 0.78 8.78
SFSL Security First Corp. of OH(7) 0.36 1.44 29.27 685 9.43 0.42 1.39 14.89 1.39 14.89
WAYN Wayne Svgs Bks MHC of OH (47.8 0.56 2.00 NM 255 9.48 NA 0.75 8.03 0.70 7.51
WOFC Western Ohio Fin. Corp. of OH 1.00 3.92 NM 372 14.68 0.91 0.04 0.26 0.08 0.61
WEHO Westwood Hmstd Fin Corp of OH 0.36 2.82 73.47 134 22.45 0.12 0.67 2.33 1.05 3.68
- ----------------------------------------------------------------------------------------------------------------------
WFI Winton Financial Corp. of OH 0.25 1.52 37.88 324 7.17 NA 1.05 14.60 0.86 12.04
FFWD Wood Bancorp of OH 0.34 1.94 44.74 165 13.20 0.35 1.44 11.31 1.23 9.66
(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.
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
Cortland Savings Bank
Stock Prices:
As of June 5, 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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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(291) 21.75 6,764 181.1 24.54 15.59 21.93 -0.89 42.54 4.06
NYSE Traded Companies(8) 43.42 37,199 1,784.9 48.53 27.89 43.34 0.64 46.72 4.37
AMEX Traded Companies(22) 18.09 3,372 59.1 21.14 14.27 18.18 -0.60 29.92 1.90
NASDAQ Listed OTC Companies(260) 21.55 6,309 151.8 24.26 15.40 21.75 -0.94 43.53 4.04
California Companies(19) 29.31 13,758 647.2 32.87 19.73 29.50 -1.15 39.21 2.81
Florida Companies(6) 21.87 24,780 478.3 24.46 14.70 22.06 -1.45 49.35 -1.46
Mid-Atlantic Companies(58) 22.71 9,699 209.7 25.50 15.52 22.97 -1.25 50.85 6.06
Mid-West Companies(133) 20.71 4,710 122.7 23.50 14.98 20.84 -0.63 38.93 2.70
New England Companies(8) 22.22 6,864 194.9 24.97 14.91 22.35 0.00 53.46 2.22
North-West Companies(11) 22.78 10,609 271.8 24.77 18.01 22.91 -1.05 42.03 17.18
South-East Companies(44) 20.96 4,239 112.4 23.99 15.68 21.18 -0.99 41.55 4.08
South-West Companies(6) 20.49 2,287 60.7 21.90 14.10 20.55 -0.89 50.78 3.00
Western Companies (Excl CA)(6) 20.05 2,145 48.1 22.10 16.69 20.53 -2.19 36.55 2.75
Thrift Strategy(244) 20.70 4,667 108.4 23.46 15.18 20.92 -1.06 40.42 3.64
Mortgage Banker Strategy(29) 29.07 18,151 631.0 32.09 18.87 29.20 -0.30 54.19 3.79
Real Estate Strategy(8) 27.80 6,612 170.1 29.82 16.20 27.63 0.39 71.79 23.56
Diversified Strategy(7) 27.84 45,244 1,320.3 32.13 19.65 27.46 0.76 34.67 -2.29
Retail Banking Strategy(3) 20.63 4,580 107.0 23.42 12.70 20.34 1.55 64.10 4.45
Companies Issuing Dividends(243) 22.18 6,611 186.7 25.05 15.86 22.37 -0.86 41.29 2.20
Companies Without Dividends(48) 19.53 7,550 152.1 21.89 14.18 19.69 -1.03 48.94 13.56
Equity/Assets < 6%(21) 25.52 16,225 397.4 28.58 15.52 25.78 -1.41 63.23 7.53
Equity/Assets 6-12%(132) 23.95 7,370 242.7 26.77 16.11 24.14 -0.89 47.64 2.95
Equity/Assets > 12%(138) 19.21 4,825 93.8 21.94 15.13 19.38 -0.81 34.86 4.54
Converted Last 3 Mths (no MHC)(11) 15.43 15,589 224.9 17.59 12.84 15.85 -2.54 72.19 34.20
Actively Traded Companies(34) 30.26 23,631 801.7 33.67 20.64 30.60 -1.27 48.69 0.99
Market Value Below $20 Million(46) 16.17 1,002 15.9 18.92 12.59 16.42 -1.46 29.70 -1.77
Holding Company Structure(266) 22.05 6,759 185.6 24.87 15.89 22.24 -0.90 40.98 4.53
Assets Over $1 Billion(59) 29.59 23,340 705.9 32.80 20.23 29.63 -0.40 47.85 5.54
Assets $500 Million-$1 Billion(40) 23.97 5,500 121.6 26.63 16.13 24.39 -1.71 50.87 4.65
Assets $250-$500 Million(70) 21.76 3,359 67.8 24.59 15.37 21.91 -0.64 48.94 8.23
Assets less than $250 Million(122) 17.63 1,677 28.8 20.25 13.50 17.81 -0.98 34.21 0.96
Goodwill Companies(118) 24.52 12,267 316.5 27.51 16.92 24.65 -0.70 46.43 3.92
Non-Goodwill Companies(173) 19.95 3,187 93.1 22.61 14.73 20.16 -1.00 40.00 4.14
Acquirors of FSLIC Cases(8) 39.96 30,421 1,655.5 43.47 26.69 39.83 1.69 54.43 5.64
Current Per Share Financials
------------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- ------ ------ ------ -------- -------
($) ($) ($) ($) ($)
Market Averages. SAIF-Insured Thrifts(no MHC)
- ---------------------------------------------
SAIF-Insured Thrifts(291) 1.04 0.99 14.06 13.58 127.87
NYSE Traded Companies(8) 2.51 2.08 20.39 19.95 282.73
AMEX Traded Companies(22) 0.80 0.76 13.82 13.51 108.48
NASDAQ Listed OTC Companies(260) 1.03 0.98 13.92 13.46 125.99
California Companies(19) 1.63 1.52 17.85 17.10 240.60
Florida Companies(6) 0.99 0.63 11.41 10.86 148.21
Mid-Atlantic Companies(58) 1.12 1.08 13.91 12.97 145.26
Mid-West Companies(133) 0.97 0.92 13.92 13.60 113.21
New England Companies(8) 1.05 1.15 13.65 13.08 185.62
North-West Companies(11) 1.08 0.97 13.92 13.50 110.52
South-East Companies(44) 0.92 0.87 13.65 13.43 97.60
South-West Companies(6) 1.34 1.33 13.93 13.33 191.37
Western Companies (Excl CA)(6) 0.83 0.83 14.94 14.22 90.57
Thrift Strategy(244) 0.99 0.95 14.06 13.63 116.54
Mortgage Banker Strategy(29) 1.38 1.32 14.81 13.73 206.80
Real Estate Strategy(8) 1.57 1.46 14.21 13.81 202.40
Diversified Strategy(7) 1.48 1.01 11.63 11.39 144.78
Retail Banking Strategy(3) 0.44 0.30 13.08 12.52 194.44
Companies Issuing Dividends(243) 1.09 1.03 14.14 13.65 127.23
Companies Without Dividends(48) 0.78 0.78 13.61 13.21 131.16
Equity/Assets < 6%(21) 1.28 1.37 12.13 11.46 245.04
Equity/Assets 6-12%(132) 1.23 1.13 13.78 13.05 159.83
Equity/Assets > 12%(138) 0.84 0.80 14.59 14.37 81.86
Converted Last 3 Mths (no MHC)(11) 0.50 0.47 12.64 11.79 53.85
Actively Traded Companies(34) 1.61 1.67 15.30 14.63 187.05
Market Value Below $20 Million(46) 0.77 0.70 13.20 13.10 95.02
Holding Company Structure(266) 1.05 1.00 14.27 13.79 127.92
Assets Over $1 Billion(59) 1.55 1.49 15.24 13.91 207.35
Assets $500 Million-$1 Billion(40) 1.10 1.06 13.62 13.25 145.41
Assets $250-$500 Million(70) 1.07 1.00 14.32 13.89 126.83
Assets less than $250 Million(122) 0.79 0.74 13.52 13.37 88.18
Goodwill Companies(118) 1.23 1.15 14.22 13.09 161.47
Non-Goodwill Companies(173) 0.92 0.88 13.95 13.90 106.02
Acquirors of FSLIC Cases(8) 2.35 2.27 20.32 19.50 256.52
(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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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(58) 24.92 18,466 642.5 27.71 16.90 25.11 -0.85 51.42 4.14
NYSE Traded Companies(5) 35.74 51,255 1,703.3 37.79 26.78 35.86 -0.78 49.94 14.07
AMEX Traded Companies(5) 20.35 2,417 52.0 23.20 13.58 20.78 -2.35 51.90 7.01
NASDAQ Listed OTC Companies(48) 24.21 16,564 589.1 27.08 16.16 24.38 -0.69 51.54 2.68
California Companies(1) 22.13 7,700 170.4 24.00 15.00 22.63 -2.21 45.11 14.96
Mid-Atlantic Companies(20) 26.73 22,190 654.7 28.82 18.06 26.91 -0.74 57.78 5.24
New England Companies(31) 24.47 5,770 135.4 27.56 16.12 24.66 -0.84 54.83 5.90
North-West Companies(3) 27.00 132,825 6,063.1 30.11 21.04 27.17 -0.81 27.65 -0.07
South-East Companies(3) 16.48 2,611 35.4 20.96 13.38 16.71 -1.26 5.24 -18.67
Thrift Strategy(44) 24.77 8,288 235.2 27.38 16.77 25.01 -1.07 53.24 5.39
Mortgage Banker Strategy(6) 23.48 28,757 795.3 27.28 15.22 23.46 0.15 50.46 -5.80
Real Estate Strategy(3) 17.07 7,682 131.2 19.19 11.82 17.51 -2.64 38.27 9.65
Diversified Strategy(5) 31.01 93,893 4,004.2 34.39 22.10 31.00 0.43 42.92 3.53
Companies Issuing Dividends(50) 25.90 20,658 727.6 28.78 17.33 26.09 -0.86 49.97 3.05
Companies Without Dividends(8) 18.29 3,752 71.3 20.59 14.06 18.53 -0.82 61.19 11.46
Equity/Assets < 6%(5) 28.24 103,851 4,364.5 31.07 17.55 28.29 -0.52 73.99 6.82
Equity/Assets 6-12%(36) 26.28 8,961 275.7 29.09 16.93 26.45 -0.63 51.94 3.03
Equity/Assets > 12%(17) 21.37 11,245 238.3 24.14 16.67 21.66 -1.37 43.81 5.43
Converted Last 3 Mths (no MHC)(2) 18.88 19,386 216.4 22.23 16.36 19.35 -1.84 66.27 11.64
Actively Traded Companies(17) 31.59 43,915 1,754.3 34.29 20.98 31.64 -0.44 49.99 5.54
Market Value Below $20 Million(1) 14.00 1,359 19.0 15.75 8.88 13.56 3.24 49.25 -5.91
Holding Company Structure(46) 24.42 17,939 639.2 27.16 16.96 24.55 -0.66 49.70 4.59
Assets Over $1 Billion(18) 33.43 49,262 1,880.4 36.01 22.71 33.73 -0.95 50.58 8.31
Assets $500 Million-$1 Billion(13) 24.93 8,497 140.2 27.66 15.95 24.90 -0.20 57.50 1.76
Assets $250-$500 Million(12) 19.30 3,893 69.3 22.38 14.11 19.55 -1.45 45.89 -1.09
Assets less than $250 Million(15) 19.76 1,868 33.1 22.61 13.20 19.94 -0.71 52.76 5.16
Goodwill Companies(30) 26.34 31,512 1,138.1 29.20 17.29 26.42 -0.46 57.56 4.76
Non-Goodwill Companies(27) 23.33 5,531 149.9 25.99 16.09 23.62 -1.18 45.54 2.15
Current Per Share Financials
------------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- ------ ------ ------ -------- -------
($) ($) ($) ($) ($)
Market Averages. BIF-Insured Thrifts(no MHC)
- --------------------------------------------
BIF-Insured Thrifts(58) 1.29 1.25 13.52 13.05 135.71
NYSE Traded Companies(5) 1.48 1.45 20.33 18.50 135.55
AMEX Traded Companies(5) 1.17 0.99 12.84 12.42 111.53
NASDAQ Listed OTC Companies(48) 1.28 1.25 12.82 12.50 138.48
California Companies(1) 1.70 1.70 13.36 13.32 131.30
Mid-Atlantic Companies(20) 1.12 1.08 14.31 13.64 127.93
New England Companies(31) 1.47 1.38 13.34 12.95 146.58
North-West Companies(3) 1.01 1.24 10.66 10.36 144.06
South-East Companies(3) 0.88 0.91 13.11 12.92 76.72
Thrift Strategy(44) 1.28 1.22 14.22 13.80 130.28
Mortgage Banker Strategy(6) 1.32 1.23 11.44 10.87 145.79
Real Estate Strategy(3) 1.33 1.28 9.29 9.27 89.86
Diversified Strategy(5) 1.30 1.50 11.94 11.04 186.52
Companies Issuing Dividends(50) 1.34 1.29 13.55 13.01 142.90
Companies Without Dividends(8) 0.96 0.95 13.33 13.31 87.48
Equity/Assets < 6%(5) 1.23 1.08 9.31 8.64 184.99
Equity/Assets 6-12%(36) 1.53 1.48 13.33 12.77 156.70
Equity/Assets > 12%(17) 0.86 0.85 15.11 14.88 81.73
Converted Last 3 Mths (no MHC)(2) 0.63 0.60 13.38 13.23 69.40
Actively Traded Companies(17) 1.77 1.65 15.83 15.10 175.01
Market Value Below $20 Million(1) 0.94 0.82 11.10 11.10 110.39
Holding Company Structure(46) 1.25 1.21 13.67 13.33 127.86
Assets Over $1 Billion(18) 1.53 1.54 15.50 14.46 163.32
Assets $500 Million-$1 Billion(13) 1.53 1.38 13.36 13.07 153.96
Assets $250-$500 Million(12) 1.12 1.07 12.08 11.82 110.73
Assets less than $250 Million(15) 1.00 0.96 12.53 12.43 112.24
Goodwill Companies(30) 1.36 1.31 13.53 12.60 153.83
Non-Goodwill Companies(27) 1.23 1.19 13.11 13.11 117.72
(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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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(17) 23.24 9,676 69.7 26.84 13.71 23.83 -2.53 89.36 12.11
BIF-Insured Thrifts(3) 24.96 32,223 382.3 28.09 15.78 25.55 -3.39 82.98 19.00
NASDAQ Listed OTC Companies(20) 23.51 13,236 119.1 27.04 14.03 24.10 -2.67 88.35 13.20
Florida Companies(2) 31.63 5,951 89.0 38.07 20.25 32.72 -3.42 55.98 -7.01
Mid-Atlantic Companies(10) 20.84 13,256 78.9 24.39 10.91 21.41 -2.72 111.70 12.10
Mid-West Companies(5) 26.22 2,336 27.0 29.13 15.26 26.66 -1.88 68.27 5.77
New England Companies(2) 27.19 46,589 576.9 29.56 20.10 27.47 -1.58 59.61 31.63
South-East Companies(1) 15.75 4,497 33.3 18.06 15.75 16.75 -5.97 57.50 57.50
Thrift Strategy(18) 22.60 9,027 66.7 26.16 13.87 23.19 -2.70 80.66 13.43
Mortgage Banker Strategy(1) 24.31 33,942 198.6 27.88 6.71 25.50 -4.67 251.30 22.28
Diversified Strategy(1) 38.06 64,083 930.7 41.13 24.19 38.13 -0.18 56.11 0.16
Companies Issuing Dividends(17) 25.00 11,758 113.1 28.79 13.77 25.53 -2.09 94.53 5.29
Companies Without Dividends(3) 15.54 21,116 151.0 17.68 15.44 16.48 -5.75 55.40 55.40
Equity/Assets 6-12%(12) 26.81 14,648 142.4 31.00 13.97 27.37 -2.06 106.07 7.40
Equity/Assets > 12%(8) 17.84 10,815 79.0 20.24 14.15 18.49 -3.72 57.97 23.15
Holding Company Structure(3) 21.60 11,690 82.1 24.38 12.87 21.92 -2.41 88.52 21.02
Assets Over $1 Billion(6) 23.00 35,086 311.9 26.23 14.57 23.77 -3.67 97.71 22.14
Assets $500 Million-$1 Billion(2) 35.50 3,969 66.4 39.88 21.25 36.32 -2.25 66.22 6.24
Assets $250-$500 Million(4) 25.35 3,627 28.1 29.31 11.98 25.63 -1.11 110.69 7.35
Assets less than $250 Million(8) 19.47 2,645 20.8 22.76 12.68 20.02 -2.82 73.90 10.87
Goodwill Companies(6) 27.65 26,222 253.1 31.25 14.36 28.30 -2.41 116.43 8.39
Non-Goodwill Companies(14) 21.60 7,242 57.2 25.09 13.88 22.16 -2.79 75.39 15.42
MHC Institutions(20) 23.51 13,236 119.1 27.04 14.03 24.10 -2.67 88.35 13.20
MHC Converted Last 3 Months(3) 15.54 21,116 151.0 17.68 15.44 16.48 -5.75 55.40 55.40
Current Per Share Financials
------------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- ------ ------ ------ -------- -------
($) ($) ($) ($) ($)
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(17) 0.63 0.59 9.77 9.49 89.53
BIF-Insured Thrifts(3) 0.90 0.63 11.35 10.30 105.92
NASDAQ Listed OTC Companies(20) 0.67 0.60 10.02 9.62 92.11
Florida Companies(2) 1.05 0.94 14.56 14.37 171.65
Mid-Atlantic Companies(10) 0.53 0.50 8.69 8.46 73.82
Mid-West Companies(5) 0.77 0.72 11.02 10.26 109.48
New England Companies(2) 0.94 0.60 10.87 9.93 96.33
South-East Companies(1) 0.43 0.43 8.56 8.56 38.07
Thrift Strategy(18) 0.63 0.60 10.10 9.80 90.64
Mortgage Banker Strategy(1) 0.55 0.45 5.41 4.86 66.59
Diversified Strategy(1) 1.49 0.80 13.18 11.29 142.78
Companies Issuing Dividends(17) 0.71 0.62 10.03 9.56 97.28
Companies Without Dividends(3) 0.47 0.47 9.94 9.94 64.55
Equity/Assets 6-12%(12) 0.76 0.64 9.95 9.32 109.20
Equity/Assets > 12%(8) 0.54 0.53 10.14 10.14 62.83
Holding Company Structure(3) 0.65 0.60 10.20 9.79 92.57
Assets Over $1 Billion(6) 0.75 0.60 9.57 9.02 101.76
Assets $500 Million-$1 Billion(2) 1.10 1.06 15.31 13.80 175.21
Assets $250-$500 Million(4) 0.58 0.55 8.57 8.57 78.50
Assets less than $250 Million(8) 0.54 0.50 9.72 9.54 67.89
Goodwill Companies(6) 0.89 0.71 9.80 8.54 120.92
Non-Goodwill Companies(14) 0.58 0.55 10.12 10.12 78.82
MHC Institutions(20) 0.67 0.60 10.02 9.62 92.11
MHC Converted Last 3 Months(3) 0.47 0.47 9.94 9.94 64.55
(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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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) 75.63 109,737 8,299.4 82.81 43.19 76.25 -0.81 77.41 12.98
BYS Bay State Bancorp of MA* 27.75 2,535 70.3 32.63 27.75 28.63 -3.07 38.75 38.75
CFB Commercial Federal Corp. of NE 33.13 40,306 1,335.3 38.19 23.75 33.31 -0.54 40.98 -6.83
DME Dime Bancorp, Inc. of NY* 30.13 114,258 3,442.6 32.06 17.00 29.19 3.22 70.90 -0.40
DSL Downey Financial Corp. of CA 34.31 28,094 963.9 34.47 20.00 33.13 3.56 72.59 26.70
FED FirstFed Fin. Corp. of CA 50.38 10,592 533.6 50.38 28.38 49.06 2.69 79.93 30.01
GSB Golden State Bancorp of CA(8) 34.50 51,328 1,770.8 41.81 25.13 38.31 -9.95 31.43 -7.85
GDW Golden West Fin. Corp. of CA 106.06 57,190 6,065.6 114.25 69.13 108.00 -1.80 54.83 8.43
GPT GreenPoint Fin. Corp. of NY* 40.94 84,469 3,458.2 42.06 29.34 41.19 -0.61 31.51 12.84
JSB JSB Financial, Inc. of NY* 58.44 9,883 577.6 58.56 41.00 57.84 1.04 29.87 16.74
OCN Ocwen Financial Corp. of FL 24.63 60,709 1,495.3 30.38 14.56 24.38 1.03 60.88 -3.18
SIB Staten Island Bancorp of NY* 21.44 45,130 967.6 23.63 18.81 22.44 -4.46 78.67 2.39
WES Westcorp Inc. of Orange CA 12.00 26,301 315.6 23.50 11.50 12.13 -1.07 -28.91 -28.91
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 23.38 2,575 60.2 25.63 19.25 23.00 1.65 17.61 0.00
ANE Alliance Bncp of New Eng of CT* 15.13 2,493 37.7 16.08 8.78 16.00 -5.44 68.11 37.55
BKC American Bank of Waterbury CT* 27.63 4,652 128.5 32.56 17.50 28.00 -1.32 57.89 13.33
BFD BostonFed Bancorp of MA 23.50 5,423 127.4 24.88 16.88 23.38 0.51 40.30 7.40
CNY Carver Bancorp, Inc. of NY 13.31 2,314 30.8 17.13 10.00 13.63 -2.35 29.85 -18.09
CBK Citizens First Fin.Corp. of IL 20.13 2,536 51.0 22.38 15.38 20.00 0.65 25.81 -0.59
EFC EFC Bancorp Inc of IL 13.50 6,937 93.6 14.94 13.50 14.00 -3.57 35.00 35.00
EBI Equality Bancorp, Inc. of MO 13.31 2,486 33.1 16.00 12.50 13.56 -1.84 33.10 -8.21
ESX Essex Bancorp of Norfolk VA(8) 3.63 1,059 3.8 7.94 1.00 3.88 -6.44 190.40 -7.87
FCB Falmouth Bancorp, Inc. of MA* 20.00 1,455 29.1 23.88 15.75 20.00 0.00 25.00 -2.44
FAB FirstFed America Bancorp of MA 20.25 8,707 176.3 23.25 14.63 20.31 -0.30 38.41 -7.45
GAF GA Financial Corp. of PA 20.25 7,595 153.8 22.25 16.50 20.38 -0.64 22.73 7.26
HBS Haywood Bancshares, Inc. of NC* 22.75 1,250 28.4 24.00 16.38 22.88 -0.57 38.89 1.11
KNK Kankakee Bancorp, Inc. of IL 35.50 1,378 48.9 37.75 28.50 34.75 2.16 22.92 -5.96
KYF Kentucky First Bancorp of KY 15.75 1,240 19.5 15.88 10.56 15.75 0.00 43.97 5.42
NBN Northeast Bancorp of ME* 16.25 2,237 36.4 19.50 9.50 17.00 -4.41 69.62 -14.47
NEP Northeast PA Fin. Corp of PA 14.50 6,427 93.2 16.00 14.00 14.88 -2.55 45.00 45.00
PDB Piedmont Bancorp, Inc. of NC 9.63 2,751 26.5 11.63 9.63 10.00 -3.70 -6.05 -11.49
SSB Scotland Bancorp, Inc. of NC 9.00 1,914 17.2 19.25 8.63 8.63 4.29 -43.32 -9.46
SZB SouthFirst Bancshares of AL 19.50 976 19.0 22.75 14.88 19.75 -1.27 30.00 -14.29
SRN Southern Banc Company of AL 16.13 1,230 19.8 19.13 14.38 16.13 0.00 12.17 -9.13
SSM Stone Street Bancorp of NC 19.94 1,881 37.5 27.25 19.25 19.94 0.00 -23.86 -10.14
TSH Teche Holding Company of LA 19.63 3,439 67.5 23.50 17.50 20.00 -1.85 6.11 -13.71
FTF Texarkana Fst. Fin. Corp of AR 29.75 1,759 52.3 30.63 17.63 30.38 -2.07 70.00 19.00
THR Three Rivers Fin. Corp. of MI 19.44 825 16.0 23.50 14.88 20.00 -2.80 29.60 -10.62
WSB Washington SB, FSB of MD 7.13 4,406 31.4 9.50 4.88 7.13 0.00 46.11 -21.30
WFI Winton Financial Corp. of OH 16.44 4,014 66.0 20.63 6.25 16.25 1.17 152.92 61.33
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN 28.00 1,090 30.5 34.50 18.41 28.00 0.00 43.44 -4.40
FBER 1st Bergen Bancorp of NJ 19.13 2,729 52.2 20.75 13.63 19.25 -0.62 40.35 0.00
AFED AFSALA Bancorp, Inc. of NY(8) 19.75 1,378 27.2 20.75 13.50 20.25 -2.47 41.07 2.60
ALBK ALBANK Fin. Corp. of Albany NY 52.38 12,853 673.2 54.50 36.75 52.00 0.73 42.03 1.83
AMFC AMB Financial Corp. of IN 18.25 964 17.6 19.38 14.00 18.38 -0.71 21.67 14.92
ASBP ASB Financial Corp. of OH 16.50 1,635 27.0 16.75 11.75 14.56 13.32 40.43 24.53
ABBK Abington Bancorp of MA* 18.50 3,564 65.9 22.25 12.13 18.00 2.78 51.76 -11.90
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) 3.64 3.43 27.07 19.91 496.82
BYS Bay State Bancorp of MA* 1.05 1.05 23.66 23.66 114.26
CFB Commercial Federal Corp. of NE 1.49 1.74 14.63 12.79 211.60
DME Dime Bancorp, Inc. of NY* 1.28 1.03 11.37 9.31 192.76
DSL Downey Financial Corp. of CA 1.80 1.84 15.88 15.70 209.01
FED FirstFed Fin. Corp. of CA 2.46 2.38 21.95 21.80 384.00
GSB Golden State Bancorp of CA(8) 2.04 2.21 18.85 17.01 312.29
GDW Golden West Fin. Corp. of CA 6.52 6.55 49.22 49.22 693.64
GPT GreenPoint Fin. Corp. of NY* 1.68 1.74 15.15 8.45 156.60
JSB JSB Financial, Inc. of NY* 2.97 2.64 35.96 35.96 154.92
OCN Ocwen Financial Corp. of FL 1.39 0.27 7.37 6.98 56.35
SIB Staten Island Bancorp of NY* 0.43 0.79 15.51 15.11 59.19
WES Westcorp Inc. of Orange CA 1.40 -0.28 13.26 13.23 141.78
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 1.14 1.07 17.49 17.49 113.98
ANE Alliance Bncp of New Eng of CT* 0.87 0.51 7.91 7.72 99.21
BKC American Bank of Waterbury CT* 1.77 1.48 12.62 12.23 139.99
BFD BostonFed Bancorp of MA 1.30 1.10 14.98 14.44 190.23
CNY Carver Bancorp, Inc. of NY -0.20 0.03 15.24 14.66 179.67
CBK Citizens First Fin.Corp. of IL 0.78 0.49 15.27 15.27 110.35
EFC EFC Bancorp Inc of IL 0.56 0.56 12.42 12.42 52.24
EBI Equality Bancorp, Inc. of MO 0.46 0.10 10.31 10.31 92.23
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 0.20 0.63 14.87 14.87 133.17
GAF GA Financial Corp. of PA 1.10 1.04 15.09 14.95 107.71
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 27.96 23.26 289.90
KYF Kentucky First Bancorp of KY 0.79 0.78 11.24 11.24 65.97
NBN Northeast Bancorp of ME* 0.76 0.67 9.40 8.48 124.60
NEP Northeast PA Fin. Corp of PA 0.42 0.42 12.43 12.43 68.06
PDB Piedmont Bancorp, Inc. of NC 0.57 0.56 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 0.69 0.65 16.75 16.34 166.27
SRN Southern Banc Company of AL 0.41 0.41 14.74 14.61 86.31
SSM Stone Street Bancorp of NC 0.78 0.78 16.51 16.51 58.99
TSH Teche Holding Company of LA 1.09 1.08 16.38 16.38 118.43
FTF Texarkana Fst. Fin. Corp of AR 1.77 1.74 15.99 15.99 105.05
THR Three Rivers Fin. Corp. of MI 1.00 0.95 15.91 15.86 118.17
WSB Washington SB, FSB of MD 0.46 0.33 5.23 5.23 60.31
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 1.82 1.24 21.48 21.13 238.13
FBER 1st Bergen Bancorp of NJ 0.78 0.78 13.54 13.54 115.82
AFED AFSALA Bancorp, Inc. of NY(8) 0.89 0.89 14.58 14.58 116.41
ALBK ALBANK Fin. Corp. of Albany NY 3.42 3.38 28.54 22.32 318.17
AMFC AMB Financial Corp. of IN 1.05 0.60 15.54 15.54 110.17
ASBP ASB Financial Corp. of OH 0.66 0.65 10.68 10.68 70.28
ABBK Abington Bancorp of MA* 1.25 1.06 9.70 8.82 154.28
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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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 11.50 1,217 14.0 13.00 5.52 12.00 -4.17 103.90 4.55
AFBC Advance Fin. Bancorp of WV 18.50 1,074 19.9 20.88 13.63 18.13 2.04 32.14 6.44
AFCB Affiliated Comm BC, Inc of MA(8) 38.34 6,581 252.3 41.88 23.50 38.44 -0.26 55.66 1.56
ALBC Albion Banc Corp. of Albion NY 9.50 752 7.1 14.17 7.33 10.50 -9.52 34.18 -28.73
ABCL Alliance Bancorp, Inc. of IL 26.75 8,024 214.6 29.25 19.75 27.31 -2.05 33.08 0.94
ALLB Alliance Bank MHC of PA (19.9) 34.00 3,273 22.1 39.00 12.50 35.00 -2.86 163.98 9.68
AHCI Ambanc Holding Co., Inc. of NY* 18.63 4,258 79.3 20.00 14.13 19.19 -2.92 34.22 -0.64
ASBI Ameriana Bancorp of IN 19.75 3,252 64.2 22.00 15.50 19.75 0.00 27.42 -0.65
ABCW Anchor Bancorp Wisconsin of WI 40.94 8,963 366.9 46.50 21.56 42.38 -3.40 91.49 12.53
ANDB Andover Bancorp, Inc. of MA* 34.13 6,474 221.0 36.20 23.50 34.25 -0.35 42.80 5.99
ASFC Astoria Financial Corp. of NY 54.31 26,366 1,431.9 62.50 42.31 55.03 -1.31 30.08 -2.58
AVND Avondale Fin. Corp. of IL 17.38 3,324 57.8 18.88 13.25 18.13 -4.14 27.51 6.95
BKCT Bancorp Connecticut of CT* 20.13 5,100 102.7 25.00 12.25 20.38 -1.23 56.29 -4.14
BPLS Bank Plus Corp. of CA 13.25 19,383 256.8 16.13 9.88 12.94 2.40 26.19 4.91
BNKU Bank United Corp. of TX 50.63 31,596 1,599.7 56.00 35.00 50.00 1.26 42.62 3.45
BWFC Bank West Fin. Corp. of MI 14.38 2,624 37.7 17.50 8.83 14.25 0.91 59.78 -10.85
BANC BankAtlantic Bancorp of FL 13.50 32,996 445.4 17.00 12.50 13.75 -1.82 -2.74 -19.40
BKUNA BankUnited Fin. Corp. of FL 17.13 15,468 265.0 18.13 9.38 18.03 -4.99 73.38 11.16
BVCC Bay View Capital Corp. of CA 32.25 20,243 652.8 38.00 24.69 32.13 0.37 28.33 -11.03
FSNJ Bayonne Banchsares of NJ 16.25 9,050 147.1 17.38 8.78 16.25 0.00 87.86 21.45
BFSB Bedford Bancshares, Inc. of VA 29.00 1,149 33.3 34.75 19.88 29.38 -1.29 46.84 -14.71
BFFC Big Foot Fin. Corp. of IL 19.38 2,513 48.7 23.94 15.63 19.38 0.00 20.15 -7.71
BYFC Broadway Fin. Corp. of CA 11.00 863 9.5 13.75 10.50 12.00 -8.33 2.33 -16.98
BRKL Brookline Bncp MHC of MA(47.0) 16.31 29,095 223.0 17.98 16.00 16.81 -2.97 63.10 63.10
CBES CBES Bancorp, Inc. of MO 20.63 940 19.4 26.00 16.13 21.25 -2.92 25.03 -7.28
CCFH CCF Holding Company of GA 22.00 897 19.7 24.00 14.32 23.94 -8.10 50.07 9.29
CFSB CFSB Bancorp of Lansing MI 26.75 8,220 219.9 28.30 13.94 27.38 -2.30 85.89 12.11
CKFB CKF Bancorp of Danville KY 19.00 855 16.2 21.25 17.75 19.00 0.00 -1.30 2.70
CNSB CNS Bancorp, Inc. of MO 17.52 1,645 28.8 21.50 15.63 17.63 -0.62 13.03 -14.54
CSBF CSB Financial Group Inc of IL 13.75 840 11.6 14.00 11.75 13.75 0.00 13.36 1.85
CBCI Calumet Bancorp of Chicago IL 36.75 3,141 115.4 39.00 24.83 36.00 2.08 45.08 10.53
CAFI Camco Fin. Corp. of OH 29.50 3,646 107.6 31.00 17.14 29.00 1.72 67.42 15.69
CMRN Cameron Fin. Corp. of MO 20.38 2,563 52.2 22.19 16.25 20.88 -2.39 25.42 -0.59
CAPS Capital Savings Bancorp of MO(8) 20.75 1,891 39.2 25.25 15.50 22.50 -7.78 27.69 -17.82
CFNC Carolina Fincorp of NC* 16.94 1,906 32.3 18.88 14.38 17.50 -3.20 16.83 -8.43
CASB Cascade Financial Corp. of WA 19.25 3,399 65.4 20.00 12.00 19.50 -1.28 26.64 45.28
CATB Catskill Fin. Corp. of NY* 17.38 4,461 77.5 19.13 15.25 17.75 -2.08 12.13 -7.94
CAVB Cavalry Bancorp of TN 22.50 7,538 169.6 25.25 20.56 23.50 -4.26 125.00 125.00
CNIT Cenit Bancorp of Norfolk VA 23.25 4,977 115.7 28.58 14.83 24.50 -5.10 55.00 -12.26
CEBK Central Co-Op. Bank of MA* 27.88 1,965 54.8 33.50 17.13 28.44 -1.97 62.76 -2.18
CENB Century Bancorp, Inc. of NC(8) 20.25 1,271 25.7 39.00 19.75 19.75 2.53 -10.99 -28.32
COFI Charter One Financial of OH 35.50 128,136 4,548.8 36.38 22.86 34.25 3.65 57.36 12.48
CVAL Chester Valley Bancorp of PA 31.88 2,185 69.7 37.00 17.86 32.19 -0.96 69.48 8.99
CTZN CitFed Bancorp of Dayton OH(8) 49.25 13,087 644.5 58.00 24.50 49.44 -0.38 101.02 26.28
CLAS Classic Bancshares, Inc. of KY 14.88 1,300 19.3 21.50 13.88 16.13 -7.75 1.71 -11.16
CBSA Coastal Bancorp of Houston TX 38.94 5,035 196.1 40.00 27.00 38.50 1.14 43.21 11.64
CFCP Coastal Fin. Corp. of SC 20.00 6,248 125.0 20.81 14.72 20.00 0.00 16.55 8.81
CMSB Commonwealth Bancorp Inc of PA 24.00 16,264 390.3 24.00 15.13 23.63 1.57 58.63 20.72
CMSV Commty. Svgs, MHC of FL (48.5) 34.50 5,100 85.2 40.75 21.75 35.38 -2.49 58.62 -2.49
CFTP Community Fed. Bancorp of MS 17.50 4,527 79.2 21.00 16.38 18.00 -2.78 -0.74 -13.58
CFFC Community Fin. Corp. of VA 15.50 2,554 39.6 16.38 10.75 14.88 4.17 37.78 12.24
CIBI Community Inv. Bancorp of OH 20.50 890 18.2 22.88 12.67 21.38 -4.12 61.80 26.86
COOP Cooperative Bancshares of NC 18.00 2,984 53.7 25.00 10.50 18.25 -1.37 63.64 -26.53
CRZY Crazy Woman Creek Bncorp of WY 17.75 955 17.0 20.00 13.13 18.13 -2.10 30.23 18.33
DNFC D&N Financial Corp. of MI 26.25 9,135 239.8 29.75 16.36 25.88 1.43 59.28 -0.94
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
AFCB Affiliated Comm BC, Inc of MA(8) 1.84 1.76 17.62 17.54 173.34
ALBC Albion Banc Corp. of Albion NY 0.45 0.43 8.28 8.28 96.94
ABCL Alliance Bancorp, Inc. of IL 1.55 1.59 16.46 16.27 191.56
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* 0.60 0.48 14.27 14.27 122.08
ASBI Ameriana Bancorp of IN 1.16 0.99 13.90 13.64 119.46
ABCW Anchor Bancorp Wisconsin of WI 2.29 2.04 14.28 14.05 223.06
ANDB Andover Bancorp, Inc. of MA* 2.12 2.06 16.97 16.97 214.01
ASFC Astoria Financial Corp. of NY 2.74 2.52 32.88 23.27 413.24
AVND Avondale Fin. Corp. of IL -1.41 -1.01 13.87 13.87 182.51
BKCT Bancorp Connecticut of CT* 1.22 1.05 9.44 9.44 94.07
BPLS Bank Plus Corp. of CA 0.62 0.72 9.57 8.76 217.72
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 68.66
BANC BankAtlantic Bancorp of FL 0.81 0.35 6.58 5.51 106.88
BKUNA BankUnited Fin. Corp. of FL 0.42 0.32 9.43 8.18 215.09
BVCC Bay View Capital Corp. of CA 0.68 1.06 19.20 12.29 263.86
FSNJ Bayonne Banchsares of NJ 0.30 0.43 10.63 10.63 67.47
BFSB Bedford Bancshares, Inc. of VA 1.45 1.44 17.71 17.71 133.29
BFFC Big Foot Fin. Corp. of IL 0.44 0.38 15.24 15.24 83.36
BYFC Broadway Fin. Corp. of CA 0.69 0.48 15.08 15.08 148.83
BRKL Brookline Bncp MHC of MA(47.0) 0.39 0.39 8.56 8.56 49.88
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 12.91 12.91 159.49
CFSB CFSB Bancorp of Lansing MI 1.36 1.24 7.95 7.95 102.94
CKFB CKF Bancorp of Danville KY 1.34 1.01 15.61 15.61 73.18
CNSB CNS Bancorp, Inc. of MO 0.54 0.50 14.63 14.63 59.28
CSBF CSB Financial Group Inc of IL 0.29 0.25 13.87 13.09 57.78
CBCI Calumet Bancorp of Chicago IL 3.25 3.26 27.30 27.30 156.09
CAFI Camco Fin. Corp. of OH 1.77 1.34 15.62 14.66 157.86
CMRN Cameron Fin. Corp. of MO 0.95 0.93 17.91 17.91 86.18
CAPS Capital Savings Bancorp of MO(8) 1.39 1.19 12.42 12.42 122.61
CFNC Carolina Fincorp of NC* 0.55 0.63 13.89 13.89 62.16
CASB Cascade Financial Corp. of WA 0.91 0.86 8.93 8.93 127.89
CATB Catskill Fin. Corp. of NY* 0.86 0.85 15.54 15.54 66.34
CAVB Cavalry Bancorp of TN 0.62 0.43 13.23 13.23 46.54
CNIT Cenit Bancorp of Norfolk VA 1.29 1.20 10.15 9.36 147.56
CEBK Central Co-Op. Bank of MA* 1.42 1.30 18.35 16.59 186.82
CENB Century Bancorp, Inc. of NC(8) 1.06 1.06 14.58 14.58 82.12
COFI Charter One Financial of OH 1.13 1.57 11.19 10.49 151.85
CVAL Chester Valley Bancorp of PA 1.52 1.38 13.64 13.64 157.38
CTZN CitFed Bancorp of Dayton OH(8) 2.21 2.24 16.89 15.56 270.00
CLAS Classic Bancshares, Inc. of KY 0.84 0.98 15.38 13.12 102.15
CBSA Coastal Bancorp of Houston TX 2.83 2.91 21.95 18.92 589.12
CFCP Coastal Fin. Corp. of SC 1.03 0.85 5.63 5.63 93.35
CMSB Commonwealth Bancorp Inc of PA 0.96 0.72 13.41 10.72 146.98
CMSV Commty. Svgs, MHC of FL (48.5) 1.03 0.95 16.11 16.11 149.14
CFTP Community Fed. Bancorp of MS 0.59 0.56 13.25 13.25 56.12
CFFC Community Fin. Corp. of VA 0.73 0.74 9.76 9.72 71.60
CIBI Community Inv. Bancorp of OH 1.02 1.02 12.56 12.56 114.31
COOP Cooperative Bancshares of NC 0.76 0.69 9.76 9.76 127.83
CRZY Crazy Woman Creek Bncorp of WY 0.77 0.78 15.23 15.23 64.59
DNFC D&N Financial Corp. of MI 1.63 1.45 11.13 11.03 204.44
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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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)
- ---------------------------------------
DCBI Delphos Citizens Bancorp of OH 20.50 1,904 39.0 24.25 14.00 20.75 -1.20 46.43 -1.20
DIME Dime Community Bancorp of NY* 29.00 12,440 360.8 29.13 17.88 29.00 0.00 64.49 22.11
DIBK Dime Financial Corp. of CT(8)* 34.63 5,248 181.7 37.00 23.00 35.63 -2.81 45.02 13.54
ESBF ESB Financial Corp of PA 18.13 5,751 104.3 20.00 11.16 18.75 -3.31 56.70 3.60
EGLB Eagle BancGroup of IL 19.75 1,177 23.2 21.13 15.00 19.38 1.91 29.51 4.61
EBSI Eagle Bancshares of Tucker GA 23.63 5,719 135.1 27.25 16.13 23.00 2.74 46.50 7.41
ETFS East Texas Fin. Serv. of TX 15.75 1,539 24.2 16.25 11.50 15.88 -0.82 36.96 -0.51
ESBK Elmira Svgs Bank (The) of NY* 29.25 727 21.3 32.25 18.33 29.00 0.86 48.03 -2.50
EMLD Emerald Financial Corp. of OH 13.25 10,262 136.0 16.00 6.69 13.25 0.00 85.83 19.80
EFBC Empire Federal Bancorp of MT 16.63 2,592 43.1 18.25 13.00 16.88 -1.48 26.08 -2.92
EFBI Enterprise Fed. Bancorp of OH 28.00 2,211 61.9 35.00 18.00 29.38 -4.70 47.37 -11.11
EQSB Equitable FSB of Wheaton MD 30.50 1,218 37.1 34.00 17.00 31.00 -1.61 79.41 15.09
FCBF FCB Fin. Corp. of Neenah WI 32.00 3,863 123.6 34.00 24.13 32.75 -2.29 29.29 8.47
FFDF FFD Financial Corp. of OH 23.50 1,445 34.0 23.75 13.38 23.50 0.00 70.91 30.56
FFLC FFLC Bancorp of Leesburg FL 20.13 3,747 75.4 23.50 16.05 20.03 0.50 22.00 -7.45
FFWC FFW Corporation of Wabash IN 17.00 1,450 24.7 21.50 13.00 17.25 -1.45 30.77 -10.53
FFYF FFY Financial Corp. of OH 32.88 4,055 133.3 35.38 25.50 32.50 1.17 25.83 -0.75
FMCO FMS Financial Corp. of NJ 45.00 2,395 107.8 50.00 19.75 47.38 -5.02 127.85 26.76
FFHH FSF Financial Corp. of MN 19.00 2,949 56.0 21.25 16.63 19.25 -1.30 14.25 -9.26
FOBC Fed One Bancorp of Wheeling WV(8) 36.25 2,394 86.8 40.63 20.00 37.75 -3.97 75.71 31.82
FBCI Fidelity Bancorp of Chicago IL 23.13 2,822 65.3 26.00 18.50 23.75 -2.61 23.36 -9.75
FSBI Fidelity Bancorp, Inc. of PA 24.00 1,966 47.2 28.00 16.00 24.88 -3.54 42.86 3.45
FFFL Fidelity Bcsh MHC of FL (47.7) 28.75 6,802 92.7 35.38 18.75 30.06 -4.36 53.33 -11.54
FFED Fidelity Fed. Bancorp of IN 7.38 3,127 23.1 10.50 7.38 7.63 -3.28 -18.00 -28.42
FFOH Fidelity Financial of OH 17.38 5,595 97.2 19.88 14.50 17.38 0.00 16.80 12.13
FIBC Financial Bancorp, Inc. of NY 27.50 1,707 46.9 28.00 17.00 27.38 0.44 59.42 13.97
FBSI First Bancshares, Inc. of MO 12.75 2,211 28.2 17.50 9.50 13.38 -4.71 34.21 -18.43
FBBC First Bell Bancorp of PA 19.69 6,524 128.5 21.63 14.50 20.25 -2.77 35.79 3.63
SKBO First Carnegie MHC of PA(45.0) 19.50 2,300 20.2 21.00 13.25 19.88 -1.91 45.74 4.00
FSTC First Citizens Corp of GA 31.00 2,765 85.7 35.50 16.50 31.88 -2.76 87.88 -8.82
FCBK First Coastal Bankshares of VA(8) 17.94 4,982 89.4 17.94 17.94 17.94 0.00 ***.** ***.**
FCME First Coastal Corp. of ME* 14.00 1,359 19.0 15.75 8.88 13.56 3.24 49.25 -5.91
FFBA First Colorado Bancorp of CO(8) 28.63 16,827 481.8 30.13 17.38 28.50 0.46 62.39 20.55
FDEF First Defiance Fin.Corp. of OH 14.94 8,123 121.4 16.25 13.50 15.50 -3.61 6.26 -6.63
FESX First Essex Bancorp of MA* 22.63 7,535 170.5 26.13 16.38 22.75 -0.53 37.15 -2.67
FFSX First FSB MHC Sxld of IA(46.1) 36.50 2,838 47.6 39.00 20.75 37.25 -2.01 73.81 14.96
FFES First Fed of E. Hartford CT 36.50 2,713 99.0 42.25 25.25 37.00 -1.35 43.81 -2.01
BDJI First Fed. Bancorp. of MN 19.25 998 19.2 22.00 12.33 18.75 2.67 54.00 -12.50
FFBH First Fed. Bancshares of AR 27.38 4,896 134.1 30.25 19.00 27.75 -1.33 41.28 15.28
FTFC First Fed. Capital Corp. of WI 35.00 9,258 324.0 35.75 19.83 34.75 0.72 72.84 3.31
FFKY First Fed. Fin. Corp. of KY 26.50 4,133 109.5 28.75 18.25 27.50 -3.64 37.66 16.48
FFBZ First Federal Bancorp of OH 24.38 1,575 38.4 25.75 17.00 25.75 -5.32 39.31 15.38
FFCH First Fin. Holdings Inc. of SC 23.00 13,587 312.5 27.00 13.38 23.13 -0.56 71.90 -13.40
FFHS First Franklin Corp. of OH 17.13 1,788 30.6 20.83 13.17 17.25 -0.70 26.89 -17.76
FGHC First Georgia Hold. Corp of GA 13.25 3,199 42.4 14.50 7.00 14.50 -8.62 76.67 39.47
FSPG First Home Bancorp of NJ(8) 31.13 2,708 84.3 37.50 18.13 31.13 0.00 61.71 3.32
FFSL First Independence Corp. of KS 14.00 956 13.4 15.63 11.19 14.13 -0.92 24.44 0.00
FISB First Indiana Corp. of IN 25.75 12,737 328.0 30.00 17.08 24.25 6.19 48.50 2.14
FKFS First Keystone Fin. Corp of PA 18.75 2,413 45.2 21.75 11.25 19.00 -1.32 64.76 4.87
FLKY First Lancaster Bncshrs of KY 15.50 947 14.7 16.38 15.00 15.56 -0.39 1.64 -2.76
FLFC First Liberty Fin. Corp. of GA 23.88 11,622 277.5 25.25 14.17 23.50 1.62 68.53 11.95
CASH First Midwest Fin., Inc. of OH 23.25 2,646 61.5 24.88 15.13 24.25 -4.12 45.31 3.33
FMBD First Mutual Bancorp Inc of IL 17.63 3,531 62.3 25.00 14.75 17.25 2.20 19.53 -29.48
FMSB First Mutual SB of Bellevue WA* 17.00 4,166 70.8 20.17 11.50 17.13 -0.76 37.65 -8.11
FNGB First Northern Cap. Corp of WI 13.50 8,917 120.4 14.00 9.81 13.50 0.00 33.27 -3.57
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)
- ---------------------------------------
DCBI Delphos Citizens Bancorp of OH 0.91 0.91 14.76 14.76 59.15
DIME Dime Community Bancorp of NY* 0.94 0.89 15.22 13.24 126.78
DIBK Dime Financial Corp. of CT(8)* 2.97 2.95 15.71 15.33 193.67
ESBF ESB Financial Corp of PA 1.02 1.01 11.83 10.56 164.41
EGLB Eagle BancGroup of IL 0.50 0.25 17.56 17.56 153.11
EBSI Eagle Bancshares of Tucker GA 0.96 0.97 12.80 12.80 163.40
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 4.96 4.89 60.01
EFBC Empire Federal Bancorp of MT 0.61 0.61 15.66 15.66 42.36
EFBI Enterprise Fed. Bancorp of OH 0.99 0.90 14.65 14.64 136.26
EQSB Equitable FSB of Wheaton MD 1.86 1.80 14.25 14.25 275.09
FCBF FCB Fin. Corp. of Neenah WI 1.25 0.92 18.97 18.97 134.59
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 13.86 13.86 109.06
FFWC FFW Corporation of Wabash IN 1.27 1.23 13.13 12.05 137.04
FFYF FFY Financial Corp. of OH 1.93 1.90 20.82 20.82 158.98
FMCO FMS Financial Corp. of NJ 2.25 2.24 16.60 16.44 279.17
FFHH FSF Financial Corp. of MN 1.10 1.06 14.49 14.49 139.39
FOBC Fed One Bancorp of Wheeling WV(8) 1.29 1.28 17.26 16.57 153.58
FBCI Fidelity Bancorp of Chicago IL 0.37 1.08 18.51 18.48 171.63
FSBI Fidelity Bancorp, Inc. of PA 1.42 1.40 14.01 14.01 204.94
FFFL Fidelity Bcsh MHC of FL (47.7) 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 96.59
FIBC Financial Bancorp, Inc. of NY 1.62 1.58 16.43 16.36 181.82
FBSI First Bancshares, Inc. of MO 0.83 0.79 10.80 10.35 80.48
FBBC First Bell Bancorp of PA 1.15 1.12 11.43 11.43 101.87
SKBO First Carnegie MHC of PA(45.0) 0.41 0.46 10.74 10.74 62.46
FSTC First Citizens Corp of GA 2.15 1.92 12.34 9.73 121.95
FCBK First Coastal Bankshares of VA(8) 0.85 0.65 8.96 8.96 125.50
FCME First Coastal Corp. of ME* 0.94 0.82 11.10 11.10 110.39
FFBA First Colorado Bancorp of CO(8) 1.18 1.12 12.44 12.19 92.43
FDEF First Defiance Fin.Corp. of OH 0.66 0.63 12.54 12.54 71.09
FESX First Essex Bancorp of MA* 1.36 1.24 12.09 10.66 171.64
FFSX First FSB MHC Sxld of IA(46.1) 1.16 1.17 14.51 11.48 201.27
FFES First Fed of E. Hartford CT 2.09 2.32 25.26 25.26 365.27
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 17.20 17.20 116.50
FTFC First Fed. Capital Corp. of WI 1.99 1.51 12.24 11.61 170.70
FFKY First Fed. Fin. Corp. of KY 1.52 1.48 13.02 12.33 98.56
FFBZ First Federal Bancorp of OH 1.16 1.15 10.24 10.23 134.38
FFCH First Fin. Holdings Inc. of SC 1.12 1.08 8.70 8.70 136.76
FFHS First Franklin Corp. of OH 1.05 0.91 12.01 11.95 129.94
FGHC First Georgia Hold. Corp of GA 0.57 0.57 4.44 4.14 54.87
FSPG First Home Bancorp of NJ(8) 1.71 1.68 14.10 13.92 201.54
FFSL First Independence Corp. of KS 0.79 0.79 12.09 12.09 130.22
FISB First Indiana Corp. of IN 1.42 1.07 12.27 12.14 132.52
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 0.82 0.85 8.33 7.57 109.74
CASH First Midwest Fin., Inc. of OH 0.88 0.77 15.92 14.16 153.22
FMBD First Mutual Bancorp Inc of IL 0.37 0.29 15.64 12.11 110.52
FMSB First Mutual SB of Bellevue WA* 1.05 1.03 7.35 7.35 108.29
FNGB First Northern Cap. Corp of WI 0.70 0.66 8.43 8.43 75.93
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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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)
- ---------------------------------------
FFPB First Palm Beach Bancorp of FL 43.88 5,058 221.9 44.94 29.63 43.81 0.16 48.75 1.74
FWWB First Savings Bancorp of WA 25.00 10,156 253.9 28.56 21.19 25.88 -3.40 17.65 -9.09
FSFF First SecurityFed Fin of IL 16.69 6,408 106.9 17.25 14.50 16.75 -0.36 66.90 5.97
SHEN First Shenango Bancorp of PA(8) 41.25 2,069 85.3 46.25 24.50 43.50 -5.17 68.37 11.49
FSLA First Source Bancorp of NJ 10.00 31,740 317.4 13.93 5.52 10.13 -1.28 73.91 -28.21
SOPN First Svgs Bancorp of NC 23.25 3,710 86.3 26.00 20.00 23.25 0.00 12.05 -8.82
FBNW FirstBank Corp of Clarkston WA 20.75 1,984 41.2 23.50 15.50 21.13 -1.80 107.50 9.90
FFDB FirstFed Bancorp, Inc. of AL 25.00 1,155 28.9 25.50 16.53 24.50 2.04 40.85 15.58
FSPT FirstSpartan Fin. Corp. of SC 44.50 4,430 197.1 47.25 35.00 45.81 -2.86 122.50 10.56
FLAG Flag Financial Corp of GA 18.50 4,574 84.6 18.50 8.50 18.40 0.54 117.65 29.10
FLGS Flagstar Bancorp, Inc of MI 23.94 13,670 327.3 28.38 15.44 23.88 0.25 45.09 20.91
FFIC Flushing Fin. Corp. of NY* 26.50 7,828 207.4 28.00 18.88 27.13 -2.32 40.36 10.97
FBHC Fort Bend Holding Corp. of TX(8) 23.75 1,668 39.6 28.00 13.25 23.00 3.26 79.25 9.20
FTSB Fort Thomas Fin. Corp. of KY 15.00 1,474 22.1 15.75 10.13 15.25 -1.64 42.86 -2.47
FKKY Frankfort First Bancorp of KY 16.25 1,619 26.3 24.50 15.75 16.50 -1.52 -26.97 -7.83
FTNB Fulton Bancorp, Inc. of MO 19.75 1,701 33.6 26.50 19.25 19.88 -0.65 1.28 -10.75
GUPB GFSB Bancorp, Inc of Gallup NM 15.50 1,201 18.6 17.00 12.00 15.50 0.00 29.17 10.09
GSLA GS Financial Corp. of LA 17.38 3,350 58.2 21.00 14.38 18.00 -3.44 21.96 -17.24
GOSB GSB Financial Corp. of NY* 17.13 2,248 38.5 18.94 14.25 17.75 -3.49 71.30 -5.15
GBNK Gaston Fed Bncp MHC of NC(47.0 15.75 4,497 33.3 18.06 15.75 16.75 -5.97 57.50 57.50
GFCO Glenway Financial Corp. of OH 24.00 2,282 54.8 24.25 11.50 22.25 7.87 93.86 28.00
GTPS Great American Bancorp of IL 21.88 1,588 34.7 23.00 15.50 21.50 1.77 38.92 15.16
PEDE Great Pee Dee Bancorp of SC 15.50 2,202 34.1 16.25 14.75 15.50 0.00 55.00 -3.91
GSBC Great Southern Bancorp of MO 25.00 8,036 200.9 26.38 16.00 25.91 -3.51 47.58 2.04
GSFC Green Street Fin. Corp. of NC 16.38 4,298 70.4 20.75 16.25 16.38 0.00 -8.39 -10.25
GFED Guaranty Fed Bancshares of MO 12.94 6,226 80.6 14.44 8.67 13.25 -2.34 48.05 0.47
HCBB HCB Bancshares of Camden AR 15.13 2,645 40.0 16.13 12.88 15.63 -3.20 15.23 4.34
HEMT HF Bancorp of Hemet CA 16.75 6,312 105.7 18.25 13.31 17.75 -5.63 25.19 -4.29
HFFC HF Financial Corp. of SD 23.75 4,402 104.5 24.17 12.83 24.01 -1.08 83.82 34.41
HFNC HFNC Financial Corp. of NC(8) 12.31 17,193 211.6 17.63 12.13 12.63 -2.53 -29.17 -15.10
HMNF HMN Financial, Inc. of MN 18.00 6,217 111.9 21.67 14.08 18.38 -2.07 25.61 -16.94
HALL Hallmark Capital Corp. of WI 15.00 2,934 44.0 18.00 9.63 14.88 0.81 50.00 -11.76
HRBF Harbor Federal Bancorp of MD 21.50 1,693 36.4 25.75 17.00 23.50 -8.51 24.64 -14.85
HARB Harbor Florida Bancshrs of FL 11.94 30,699 366.5 12.81 6.10 12.38 -3.55 93.83 8.35
HFSA Hardin Bancorp of Hardin MO 19.38 824 16.0 19.75 14.63 19.38 0.00 32.47 6.19
HARL Harleysville SB of PA 32.38 1,672 54.1 35.00 21.75 32.75 -1.13 47.18 17.75
HFGI Harrington Fin. Group of IN 11.38 3,311 37.7 13.75 10.75 11.50 -1.04 -5.17 -12.46
HARS Harris Fin. MHC of PA (24.3) 24.31 33,942 198.6 27.88 6.71 25.50 -4.67 251.30 22.28
HFFB Harrodsburg 1st Fin Bcrp of KY 16.25 1,947 31.6 18.00 14.75 16.88 -3.73 8.33 -2.99
HHFC Harvest Home Fin. Corp. of OH 15.00 891 13.4 16.75 10.50 15.00 0.00 41.11 -4.76
HAVN Haven Bancorp of Woodhaven NY 26.88 8,836 237.5 28.75 16.75 26.50 1.43 58.12 19.47
HTHR Hawthorne Fin. Corp. of CA 17.25 3,164 54.6 24.00 11.00 19.13 -9.83 51.58 -14.31
HMLK Hemlock Fed. Fin. Corp. of IL 18.38 2,000 36.8 19.00 12.88 18.88 -2.65 41.38 7.30
HBSC Heritage Bancorp, Inc of SC 20.50 4,629 94.9 22.38 20.13 21.00 -2.38 36.67 36.67
HFWA Heritage Financial Corp of WA 14.88 9,755 145.2 15.94 13.00 15.25 -2.43 48.80 48.80
HCBC High Country Bancorp of CO 15.00 1,323 19.8 15.50 14.44 15.25 -1.64 50.00 -3.23
HBNK Highland Bancorp of CA 42.75 2,323 99.3 43.50 21.50 42.25 1.18 97.64 30.53
HIFS Hingham Inst. for Sav. of MA* 35.00 1,304 45.6 37.00 18.25 36.75 -4.76 89.19 21.74
HBEI Home Bancorp of Elgin IL(8) 16.00 6,856 109.7 19.31 15.75 17.38 -7.94 0.00 -10.51
HBFW Home Bancorp of Fort Wayne IN 31.88 2,358 75.2 37.63 20.13 32.50 -1.91 54.53 8.07
HCFC Home City Fin. Corp. of OH 14.75 905 13.3 22.75 13.25 16.63 -11.30 11.32 -20.27
HOMF Home Fed Bancorp of Seymour IN 30.00 5,127 153.8 33.75 18.00 32.38 -7.35 66.67 15.38
HWEN Home Financial Bancorp of IN 9.13 929 8.5 9.75 7.44 8.75 4.34 15.86 -1.30
HLFC Home Loan Financial Corp of OH 15.50 2,248 34.8 16.75 15.25 15.75 -1.59 55.00 55.00
HPBC Home Port Bancorp, Inc. of MA* 26.75 1,842 49.3 27.63 19.25 25.00 7.00 33.75 15.65
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)
- ---------------------------------------
FFPB First Palm Beach Bancorp of FL 1.86 1.43 22.94 22.43 360.04
FWWB First Savings Bancorp of WA 1.26 1.19 14.97 13.87 111.92
FSFF First SecurityFed Fin of IL 0.28 0.55 14.34 14.29 49.29
SHEN First Shenango Bancorp of PA(8) 2.10 2.14 23.34 23.34 194.85
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 80.81
FBNW FirstBank Corp of Clarkston WA 0.86 0.52 15.13 15.13 92.50
FFDB FirstFed Bancorp, Inc. of AL 1.48 1.48 15.00 13.77 154.80
FSPT FirstSpartan Fin. Corp. of SC 1.52 1.51 29.87 29.87 113.62
FLAG Flag Financial Corp of GA 0.44 0.31 4.82 4.82 54.22
FLGS Flagstar Bancorp, Inc of MI 1.83 1.83 9.77 9.46 187.56
FFIC Flushing Fin. Corp. of NY* 1.13 1.14 17.52 16.85 137.77
FBHC Fort Bend Holding Corp. of TX(8) 1.41 1.04 12.29 11.52 181.49
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 0.56 0.50 16.08 16.08 38.63
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 1.10 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 0.56 0.56 13.51 13.51 35.68
GSBC Great Southern Bancorp of MO 1.73 1.55 8.31 8.25 101.40
GSFC Green Street Fin. Corp. of NC 0.66 0.66 14.81 14.81 41.39
GFED Guaranty Fed Bancshares of MO 0.39 0.38 11.21 11.21 39.56
HCBB HCB Bancshares of Camden AR 0.22 0.22 14.45 13.94 77.48
HEMT HF Bancorp of Hemet CA -0.07 0.21 13.27 11.26 168.84
HFFC HF Financial Corp. of SD 1.41 1.31 12.60 12.60 129.58
HFNC HFNC Financial Corp. of NC(8) 0.70 0.48 9.82 9.82 56.97
HMNF HMN Financial, Inc. of MN 0.93 0.66 13.66 12.71 117.76
HALL Hallmark Capital Corp. of WI 0.95 0.90 11.02 11.02 143.47
HRBF Harbor Federal Bancorp of MD 0.99 0.95 17.32 17.32 136.53
HARB Harbor Florida Bancshrs of FL 0.47 0.45 8.29 8.20 41.84
HFSA Hardin Bancorp of Hardin MO 1.06 0.91 16.36 16.36 147.02
HARL Harleysville SB of PA 2.08 2.08 14.66 14.66 219.85
HFGI Harrington Fin. Group of IN -0.03 0.07 7.39 7.39 167.06
HARS Harris Fin. MHC of PA (24.3) 0.55 0.45 5.41 4.86 66.59
HFFB Harrodsburg 1st Fin Bcrp of KY 0.76 0.76 14.79 14.79 55.89
HHFC Harvest Home Fin. Corp. of OH 0.76 0.66 11.62 11.62 104.54
HAVN Haven Bancorp of Woodhaven NY 1.12 1.11 12.91 12.88 228.36
HTHR Hawthorne Fin. Corp. of CA 2.81 3.29 14.07 14.07 330.88
HMLK Hemlock Fed. Fin. Corp. of IL 0.85 0.85 15.47 15.47 95.51
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 2.91 2.53 18.76 18.76 239.20
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 18.03 18.03 149.86
HCFC Home City Fin. Corp. of OH 1.02 1.02 15.68 15.68 84.39
HOMF Home Fed Bancorp of Seymour IN 1.95 1.58 12.65 12.31 137.54
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
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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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)
- ---------------------------------------
HFBC HopFed Bancorp of KY 20.38 4,034 82.2 21.88 16.00 20.50 -0.59 103.80 103.80
HZFS Horizon Fin'l. Services of IA 16.88 880 14.9 16.88 9.38 16.13 4.65 75.29 40.67
HRZB Horizon Financial Corp. of WA* 17.50 7,478 130.9 19.25 14.88 17.75 -1.41 17.61 -1.41
IBSF IBS Financial Corp. of NJ(8) 18.06 10,960 197.9 21.19 15.00 18.75 -3.68 21.37 2.09
ITLA ITLA Capital Corp of CA* 22.13 7,700 170.4 24.00 15.00 22.63 -2.21 45.11 14.96
ICBC Independence Comm Bnk Cp of NY 16.81 70,411 1,183.6 19.13 16.81 17.38 -3.28 68.10 68.10
IFSB Independence FSB of DC 18.25 1,281 23.4 21.63 8.50 17.00 7.35 105.52 7.35
INBI Industrial Bancorp of OH 19.25 5,078 97.8 25.00 12.50 20.94 -8.07 50.98 8.45
IWBK Interwest Bancorp of WA 47.00 8,419 395.7 47.00 34.00 45.63 3.00 32.84 24.50
IPSW Ipswich SB of Ipswich MA* 17.13 2,390 40.9 20.75 7.88 18.00 -4.83 110.70 3.82
JXVL Jacksonville Bancorp of TX 20.75 2,444 50.7 23.25 14.50 20.88 -0.62 40.68 -10.75
JXSB Jcksnville SB,MHC of IL (45.6) 21.50 1,908 12.5 25.50 10.83 22.50 -4.44 98.52 7.50
JSBA Jefferson Svgs Bancorp of MO 30.25 10,020 303.1 31.88 14.13 31.75 -4.72 110.36 47.56
JOAC Joachim Bancorp, Inc. of MO(8) 17.00 722 12.3 17.00 14.25 16.38 3.79 14.25 6.25
KSBK KSB Bancorp of Kingfield ME* 19.00 1,259 23.9 22.50 9.75 18.63 1.99 72.73 -15.56
KFBI Klamath First Bancorp of OR 19.38 9,970 193.2 24.25 18.50 19.81 -2.17 2.65 -9.86
LSBI LSB Fin. Corp. of Lafayette IN 30.00 962 28.9 31.43 18.57 31.75 -5.51 61.55 10.54
LVSB Lakeview Financial of NJ 24.25 3,882 94.1 26.56 14.75 23.50 3.19 62.97 -4.90
LARK Landmark Bancshares, Inc of KS 27.13 1,665 45.2 29.25 19.75 27.00 0.48 35.65 9.04
LARL Laurel Capital Group of PA 20.50 2,187 44.8 23.50 14.00 20.50 0.00 43.06 -5.40
LSBX Lawrence Savings Bank of MA* 15.63 4,316 67.5 19.31 10.63 16.13 -3.10 46.21 -4.58
LFED Leeds Fed Bksr MHC of MD (36.3 19.75 5,182 37.2 23.50 11.83 20.25 -2.47 64.58 -9.20
LXMO Lexington B&L Fin. Corp. of MO 15.88 1,121 17.8 17.88 14.75 15.75 0.83 7.66 -10.54
LFCO Life Financial Corp of CA(8) 21.38 6,547 140.0 25.38 10.75 19.50 9.64 N.A. 69.28
LFBI Little Falls Bancorp of NJ 19.50 2,478 48.3 22.25 13.00 20.63 -5.48 46.51 -4.88
LOGN Logansport Fin. Corp. of IN 17.25 1,261 21.8 19.63 13.25 18.50 -6.76 23.21 -4.17
LISB Long Island Bancorp, Inc of NY(8) 61.50 23,934 1,471.9 67.63 34.75 61.78 -0.45 75.06 23.92
MAFB MAF Bancorp, Inc. of IL 38.13 15,030 573.1 43.25 27.33 37.75 1.01 39.52 7.77
MBLF MBLA Financial Corp. of MO 24.13 1,251 30.2 30.63 23.25 24.13 0.00 3.78 -20.89
MECH MECH Financial Inc of CT* 28.88 5,294 152.9 31.50 18.38 29.88 -3.35 61.52 10.82
MFBC MFB Corp. of Mishawaka IN 26.50 1,652 43.8 30.38 19.00 27.00 -1.85 35.90 -12.77
MSBF MSB Financial, Inc of MI 17.00 1,231 20.9 19.50 11.00 16.25 4.62 54.55 -10.53
MARN Marion Capital Holdings of IN 28.25 1,774 50.1 29.50 22.00 28.25 0.00 25.56 4.13
MRKF Market Fin. Corp. of OH 13.88 1,336 18.5 20.25 12.75 14.00 -0.86 6.77 -11.20
MFSL Maryland Fed. Bancorp of MD(8) 39.00 6,501 253.5 40.00 21.00 39.00 0.00 86.78 11.43
MASB MassBank Corp. of Reading MA* 51.00 3,587 182.9 54.25 31.88 49.50 3.03 59.97 7.08
MFLR Mayflower Co-Op. Bank of MA* 23.75 899 21.4 27.50 15.75 25.00 -5.00 46.15 -11.21
MDBK Medford Bancorp, Inc. of MA* 41.63 4,540 189.0 44.25 27.25 42.50 -2.05 52.77 6.06
MWBX MetroWest Bank of MA* 7.75 14,220 110.2 9.50 5.38 7.69 0.78 44.05 -13.89
METF Metropolitan Fin. Corp. of OH 15.00 7,051 105.8 18.88 6.69 15.63 -4.03 124.22 -3.23
MIFC Mid Iowa Financial Corp. of IA 11.88 1,724 20.5 12.75 8.50 11.75 1.11 32.00 3.30
MCBN Mid-Coast Bancorp of ME 12.00 712 8.5 14.00 6.50 11.50 4.35 84.62 20.00
MWBI Midwest Bancshares, Inc. of IA 15.75 1,028 16.2 19.50 10.42 15.88 -0.82 50.00 -13.70
MFFC Milton Fed. Fin. Corp. of OH 16.13 2,237 36.1 17.00 13.63 16.00 0.81 18.34 4.88
MBSP Mitchell Bancorp, Inc. of NC 16.75 931 15.6 18.00 16.38 16.75 0.00 3.08 -1.47
MBBC Monterey Bay Bancorp of CA 21.38 3,166 67.7 26.75 16.00 21.75 -1.70 31.57 9.64
MONT Montgomery Fin. Corp. of IN 12.69 1,653 21.0 13.63 11.00 12.88 -1.48 26.90 -1.48
MSBK Mutual SB, FSB of Bay City MI 11.75 4,290 50.4 14.63 8.13 12.38 -5.09 40.21 -9.62
MYST Mystic Financial of MA* 15.25 2,711 41.3 18.56 14.44 15.25 0.00 52.50 52.50
NHTB NH Thrift Bancshares of NH 19.50 2,091 40.8 22.75 15.00 19.63 -0.66 25.81 -4.88
NSLB NS&L Bancorp, Inc of Neosho MO 17.59 686 12.1 19.50 16.50 17.50 0.51 6.61 -6.83
NSSY NSS Bancorp of CT* 43.25 2,373 102.6 47.75 26.88 42.50 1.76 60.19 14.57
NMSB Newmil Bancorp, Inc. of CT* 13.25 3,839 50.9 14.63 9.50 13.50 -1.85 37.59 1.92
NBCP Niagara Bancorp of NY MHC(45.4* 14.56 29,756 196.6 17.00 14.56 15.88 -8.31 45.60 45.60
NBSI North Bancshares of Chicago IL 16.25 1,280 20.8 18.83 12.83 16.94 -4.07 25.00 -9.12
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)
- ---------------------------------------
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
HRZB Horizon Financial Corp. of WA* 1.10 1.09 11.22 11.22 73.17
IBSF IBS Financial Corp. of NJ(8) 0.55 0.55 11.91 11.91 68.62
ITLA ITLA Capital Corp of CA* 1.70 1.70 13.36 13.32 131.30
ICBC Independence Comm Bnk Cp of NY 0.37 0.49 12.55 11.75 57.83
IFSB Independence FSB of DC 1.09 0.45 14.23 12.67 196.38
INBI Industrial Bancorp of OH 1.03 1.03 12.14 12.14 73.66
IWBK Interwest Bancorp of WA 2.40 2.03 16.79 16.53 248.37
IPSW Ipswich SB of Ipswich MA* 1.06 0.80 5.25 5.25 99.40
JXVL Jacksonville Bancorp of TX 1.37 1.37 14.29 14.29 97.01
JXSB Jcksnville SB,MHC of IL (45.6) 0.51 0.33 9.23 9.23 88.91
JSBA Jefferson Svgs Bancorp of MO 1.02 0.95 11.60 9.22 123.56
JOAC Joachim Bancorp, Inc. of MO(8) 0.37 0.37 13.71 13.71 47.41
KSBK KSB Bancorp of Kingfield ME* 1.20 1.20 8.75 8.32 118.87
KFBI Klamath First Bancorp of OR 0.85 0.85 14.97 13.74 99.72
LSBI LSB Fin. Corp. of Lafayette IN 1.72 1.54 18.90 18.90 224.60
LVSB Lakeview Financial of NJ 1.82 1.14 11.75 9.64 121.76
LARK Landmark Bancshares, Inc of KS 1.49 1.31 19.61 19.61 138.90
LARL Laurel Capital Group of PA 1.39 1.36 10.54 10.54 99.12
LSBX Lawrence Savings Bank of MA* 2.03 2.00 9.16 9.16 82.27
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 0.62 0.62 15.19 14.25 84.31
LFCO Life Financial Corp of CA(8) 2.17 2.25 8.94 8.94 59.14
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 13.31 13.31 70.58
LISB Long Island Bancorp, Inc of NY(8) 2.19 1.77 23.55 23.35 263.05
MAFB MAF Bancorp, Inc. of IL 2.52 2.45 18.08 16.04 233.61
MBLF MBLA Financial Corp. of MO 1.43 1.46 22.66 22.66 178.70
MECH MECH Financial Inc of CT* 2.49 2.49 17.14 17.14 178.69
MFBC MFB Corp. of Mishawaka IN 1.31 1.29 20.71 20.71 175.93
MSBF MSB Financial, Inc of MI 0.97 0.86 10.77 10.77 64.51
MARN Marion Capital Holdings of IN 1.37 1.37 22.30 21.83 108.53
MRKF Market Fin. Corp. of OH 0.48 0.48 15.25 15.25 43.23
MFSL Maryland Fed. Bancorp of MD(8) 1.14 1.60 16.07 15.91 183.36
MASB MassBank Corp. of Reading MA* 2.94 2.65 29.85 29.44 259.12
MFLR Mayflower Co-Op. Bank of MA* 1.56 1.48 14.31 14.10 146.73
MDBK Medford Bancorp, Inc. of MA* 2.60 2.45 22.79 21.54 246.77
MWBX MetroWest Bank of MA* 0.54 0.53 3.28 3.28 45.47
METF Metropolitan Fin. Corp. of OH 0.93 0.82 5.42 5.01 140.36
MIFC Mid Iowa Financial Corp. of IA 0.89 0.96 7.55 7.54 85.29
MCBN Mid-Coast Bancorp of ME 0.67 0.62 7.50 7.50 88.50
MWBI Midwest Bancshares, Inc. of IA 1.29 1.13 10.64 10.64 154.34
MFFC Milton Fed. Fin. Corp. of OH 0.63 0.56 11.50 11.50 101.35
MBSP Mitchell Bancorp, Inc. of NC 0.54 0.54 15.60 15.60 39.67
MBBC Monterey Bay Bancorp of CA 0.55 0.51 14.87 13.91 127.33
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 1.26 12.41 10.78 153.32
NSLB NS&L Bancorp, Inc of Neosho MO 0.59 0.59 16.74 16.62 89.13
NSSY NSS Bancorp of CT* 2.83 3.20 22.87 22.26 281.78
NMSB Newmil Bancorp, Inc. of CT* 0.74 0.73 8.59 8.59 96.45
NBCP Niagara Bancorp of NY MHC(45.4* 0.58 0.58 12.71 12.71 105.69
NBSI North Bancshares of Chicago IL 0.44 0.41 10.60 10.60 92.56
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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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)
- ---------------------------------------
FFFD North Central Bancshares of IA 22.13 3,266 72.3 24.88 15.13 21.50 2.93 43.33 11.32
NEIB Northeast Indiana Bncrp of IN 21.50 1,689 36.3 22.75 14.75 22.00 -2.27 38.71 -2.85
NWSB Northwest Bcrp MHC of PA (30.7 16.00 46,838 229.6 18.00 7.19 16.25 -1.54 116.80 13.23
NWEQ Northwest Equity Corp. of WI 20.38 839 17.1 22.25 14.25 20.69 -1.50 39.30 -1.78
NTMG Nutmeg FS&LA of CT 10.88 989 10.8 11.38 5.53 10.88 0.00 81.33 3.62
OHSL OHSL Financial Corp. of OH 17.25 2,490 43.0 18.38 11.63 16.75 2.99 45.20 27.78
OCFC Ocean Fin. Corp. of NJ 19.50 15,534 302.9 20.00 15.56 19.25 1.30 23.81 4.67
OTFC Oregon Trail Fin. Corp. of OR 16.63 4,333 72.1 18.50 15.63 16.63 0.00 66.30 -4.32
OFCP Ottawa Financial Corp. of MI 29.00 5,317 154.2 34.00 19.43 29.13 -0.45 50.10 -14.71
PFFB PFF Bancorp of Pomona CA 19.44 17,067 331.8 21.50 15.13 19.56 -0.61 25.42 -2.21
PSFI PS Financial of Chicago IL 13.13 2,074 27.2 22.38 13.13 13.75 -4.51 -7.86 -41.33
PVFC PVF Capital Corp. of OH 26.50 2,660 70.5 28.25 16.36 26.50 0.00 61.98 31.25
PBCI Pamrapo Bancorp, Inc. of NJ 28.25 2,843 80.3 29.00 19.75 28.50 -0.88 43.04 3.67
PFED Park Bancorp of Chicago IL 18.75 2,333 43.7 19.75 14.50 18.20 3.02 27.12 0.64
PVSA Parkvale Financial Corp of PA 31.75 5,150 163.5 34.25 21.40 31.75 0.00 43.02 -7.30
PBHC Pathfinder BC MHC of NY (46.1)* 22.25 2,831 19.6 26.13 8.58 22.63 -1.68 147.22 11.25
PEEK Peekskill Fin. Corp. of NY 18.00 3,017 54.3 18.25 14.00 17.50 2.86 27.39 7.46
PFSB PennFed Fin. Services of NJ 17.00 9,647 164.0 19.00 12.59 17.50 -2.86 38.78 -0.76
PWBK Pennwood Bancorp, Inc. of PA 14.00 734 10.3 17.44 11.06 14.75 -5.08 24.44 -5.47
PBKB People's Bancshares of MA* 26.19 3,309 86.7 27.75 13.38 26.38 -0.72 94.00 15.12
TSBS Peoples Bancorp Inc of NJ* 10.00 36,237 362.4 11.83 4.97 10.06 -0.60 93.80 -15.47
PFDC Peoples Bancorp of Auburn IN 22.75 3,378 76.8 25.00 14.50 22.00 3.41 49.97 3.41
PBCT Peoples Bank, MHC of CT (40.1)* 38.06 64,083 930.7 41.13 24.19 38.13 -0.18 56.11 0.16
PFFC Peoples Fin. Corp. of OH 13.63 1,417 19.3 19.00 12.75 15.38 -11.38 -9.91 -9.91
PHBK Peoples Heritage Fin Grp of ME* 23.56 55,662 1,311.4 26.50 17.00 22.50 4.71 37.54 2.43
PSFC Peoples Sidney Fin. Corp of OH 24.38 1,785 43.5 24.38 13.00 20.50 18.93 87.54 36.35
PERM Permanent Bancorp, Inc. of IN 16.00 4,206 67.3 18.25 11.38 16.50 -3.03 30.61 2.83
PCBC Perry Co. Fin. Corp. of MO 23.38 828 19.4 25.00 19.50 24.00 -2.58 17.61 -3.11
PHFC Pittsburgh Home Fin Corp of PA 17.63 1,969 34.7 20.81 14.38 17.75 -0.68 18.48 -2.06
PFSL Pocahontas Bancorp of AR 9.88 6,669 65.9 11.43 4.85 9.94 -0.60 109.77 -10.67
PTRS Potters Financial Corp of OH 18.75 967 18.1 22.25 10.13 18.75 0.00 85.09 -6.25
PHSB Ppls Home SB, MHC of PA (45.0) 20.13 2,760 25.0 22.13 13.63 20.25 -0.59 101.30 6.62
PRBC Prestige Bancorp of PA 20.50 1,052 21.6 22.07 13.48 21.25 -3.53 49.64 17.88
PFNC Progress Financial Corp. of PA 19.50 4,201 81.9 22.75 8.57 19.50 0.00 118.37 18.18
PSBK Progressive Bank, Inc. of NY(8)* 42.00 3,856 162.0 44.50 27.25 41.13 2.12 54.13 9.80
PROV Provident Fin. Holdings of CA 22.75 4,669 106.2 24.25 16.13 22.75 0.00 42.19 3.98
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 45.25 2,106 28.2 51.00 17.38 45.50 -0.55 156.66 44.20
PLSK Pulaski SB, MHC of NJ (46.0) 18.25 2,108 17.4 24.50 12.75 18.50 -1.35 38.99 -5.19
PULS Pulse Bancorp of S. River NJ 27.63 3,111 86.0 29.75 18.25 27.63 0.00 51.40 5.74
QCFB QCF Bancorp of Virginia MN 30.25 1,365 41.3 31.75 20.50 30.25 0.00 46.63 1.68
QCBC Quaker City Bancorp of CA 22.00 4,665 102.6 25.00 15.88 22.13 -0.59 38.54 3.53
QCSB Queens County Bancorp of NY* 44.44 14,922 663.1 47.13 27.75 44.00 1.00 60.61 9.73
RARB Raritan Bancorp of Raritan NJ* 30.00 2,388 71.6 30.00 19.50 29.00 3.45 47.57 7.14
REDF RedFed Bancorp of Redlands CA(8) 20.31 7,388 150.1 21.13 15.13 20.19 0.59 38.82 2.16
RELY Reliance Bancorp, Inc. of NY 39.25 9,628 377.9 42.25 24.63 38.19 2.78 60.20 7.15
RELI Reliance Bancshares Inc of WI 8.50 2,371 20.2 10.13 7.25 8.13 4.55 11.40 -10.53
RCBK Richmond County Fin Corp of NY 18.50 26,424 488.8 19.75 15.69 19.00 -2.63 85.00 85.00
RIVR River Valley Bancorp of IN 19.00 1,190 22.6 20.75 14.50 18.38 3.37 33.33 1.33
RVSB Riverview Bancorp of WA 16.75 6,154 103.1 19.13 7.49 16.75 0.00 109.64 -5.63
RSLN Roslyn Bancorp, Inc. of NY* 22.13 42,822 947.7 30.50 17.44 23.53 -5.95 26.89 -4.82
SCCB S. Carolina Comm. Bnshrs of SC 21.75 580 12.6 25.25 18.25 21.50 1.16 14.47 -3.33
SBFL SB Fngr Lakes MHC of NY (33.1) 19.63 3,570 23.2 24.75 8.13 20.00 -1.85 141.45 22.69
SFED SFS Bancorp of Schenectady NY 22.00 1,208 26.6 27.25 16.50 22.00 0.00 32.29 -18.15
SGVB SGV Bancorp of W. Covina CA 18.13 2,345 42.5 19.38 12.88 17.75 2.14 40.76 2.14
SISB SIS Bancorp, Inc. of MA* 41.13 6,970 286.7 44.50 27.63 41.88 -1.79 45.59 2.34
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)
- ---------------------------------------
FFFD North Central Bancshares of IA 1.16 1.16 15.72 13.68 101.90
NEIB Northeast Indiana Bncrp of IN 1.33 1.33 15.82 15.82 118.59
NWSB Northwest Bcrp MHC of PA (30.7 0.44 0.44 4.55 4.07 51.44
NWEQ Northwest Equity Corp. of WI 1.22 1.17 13.77 13.77 118.66
NTMG Nutmeg FS&LA of CT 0.57 0.40 6.58 6.58 112.78
OHSL OHSL Financial Corp. of OH 0.82 0.76 10.64 10.64 100.87
OCFC Ocean Fin. Corp. of NJ 0.90 0.90 13.90 13.90 97.75
OTFC Oregon Trail Fin. Corp. of OR 0.68 0.69 15.34 15.34 59.32
OFCP Ottawa Financial Corp. of MI 1.44 1.33 14.55 11.92 172.18
PFFB PFF Bancorp of Pomona CA 0.94 0.88 14.90 14.75 164.78
PSFI PS Financial of Chicago IL 0.44 0.74 11.24 11.24 40.42
PVFC PVF Capital Corp. of OH 1.94 1.83 11.34 11.34 157.49
PBCI Pamrapo Bancorp, Inc. of NJ 1.73 1.67 17.20 17.11 134.17
PFED Park Bancorp of Chicago IL 0.69 0.74 16.84 16.84 84.59
PVSA Parkvale Financial Corp of PA 2.11 2.11 16.02 15.94 204.95
PBHC Pathfinder BC MHC of NY (46.1)* 0.62 0.50 8.15 6.91 69.30
PEEK Peekskill Fin. Corp. of NY 0.63 0.65 14.92 14.92 64.91
PFSB PennFed Fin. Services of NJ 1.15 1.12 10.96 9.50 152.28
PWBK Pennwood Bancorp, Inc. of PA 0.50 0.60 11.59 11.59 63.21
PBKB People's Bancshares of MA* 1.59 0.70 9.56 9.23 260.50
TSBS Peoples Bancorp Inc of NJ* 0.20 0.15 3.09 2.80 24.53
PFDC Peoples Bancorp of Auburn IN 1.29 1.29 13.43 13.43 89.00
PBCT Peoples Bank, MHC of CT (40.1)* 1.49 0.80 13.18 11.29 142.78
PFFC Peoples Fin. Corp. of OH 0.75 0.29 11.11 11.11 58.02
PHBK Peoples Heritage Fin Grp of ME* 1.37 1.36 8.82 6.71 131.32
PSFC Peoples Sidney Fin. Corp of OH 0.71 0.71 14.87 14.87 59.12
PERM Permanent Bancorp, Inc. of IN 0.63 0.62 9.98 9.86 99.81
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 8.72 8.72 60.08
PTRS Potters Financial Corp of OH 1.01 0.98 11.40 11.40 130.90
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 0.89 0.80 6.37 5.65 115.40
PSBK Progressive Bank, Inc. of NY(8)* 2.22 2.23 20.68 18.87 232.39
PROV Provident Fin. Holdings of CA 1.06 0.52 18.16 18.16 163.75
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 0.91 0.78 11.49 11.49 85.70
PLSK Pulaski SB, MHC of NJ (46.0) 0.55 0.55 10.44 10.44 90.50
PULS Pulse Bancorp of S. River NJ 1.81 1.83 14.47 14.47 173.58
QCFB QCF Bancorp of Virginia MN 1.82 1.82 19.65 19.65 111.84
QCBC Quaker City Bancorp of CA 1.35 1.31 16.14 16.14 184.35
QCSB Queens County Bancorp of NY* 1.50 1.48 11.36 11.36 108.73
RARB Raritan Bancorp of Raritan NJ* 1.65 1.62 13.22 13.05 175.38
REDF RedFed Bancorp of Redlands CA(8) 1.53 1.58 12.00 11.96 139.90
RELY Reliance Bancorp, Inc. of NY 1.93 2.04 20.13 13.89 226.40
RELI Reliance Bancshares Inc of WI 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 1.10 0.92 15.12 14.91 115.17
RVSB Riverview Bancorp of WA 0.64 0.61 9.93 9.60 44.39
RSLN Roslyn Bancorp, Inc. of NY* 1.03 0.99 14.51 14.44 86.55
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 0.92 0.89 17.95 17.95 145.22
SGVB SGV Bancorp of W. Covina CA 0.66 0.75 13.49 13.31 171.03
SISB SIS Bancorp, Inc. of MA* 1.55 2.00 18.39 18.39 257.38
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 June 5, 1998
Market Capitalization Price Change Data
--------------------------- -----------------------------------------------
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)
- ---------------------------------------
SWCB Sandwich Bancorp of MA(8)* 64.00 1,946 124.5 64.50 30.25 63.50 0.79 108.13 45.45
SFSL Security First Corp. of OH(8) 25.00 7,555 188.9 27.88 14.00 24.13 3.61 76.43 19.73
SKAN Skaneateles Bancorp Inc of NY* 17.50 1,440 25.2 22.25 12.33 17.25 1.45 41.93 -20.92
SOBI Sobieski Bancorp of S. Bend IN 19.50 764 14.9 24.25 14.75 19.25 1.30 32.20 -4.32
SOSA Somerset Savings Bank of MA(8)* 5.06 16,727 84.6 5.94 2.56 5.13 -1.36 90.23 1.20
SSFC South Street Fin. Corp. of NC* 9.75 4,676 45.6 20.00 9.38 9.75 0.00 -40.00 -48.68
SBAN SouthBanc Shares Inc. of SC 19.56 1,509 13.8 23.76 9.47 19.88 -1.61 101.86 -8.00
SCBS Southern Commun. Bncshrs of AL 17.25 1,137 19.6 20.75 13.75 16.75 2.99 25.45 -5.48
SMBC Southern Missouri Bncrp of MO 21.50 1,605 34.5 23.25 17.00 21.56 -0.28 22.86 4.88
SWBI Southwest Bancshares of IL(8) 31.75 2,788 88.5 34.25 20.19 31.75 0.00 58.75 6.72
SVRN Sovereign Bancorp, Inc. of PA 17.38 132,925 2,310.2 22.19 11.25 17.69 -1.75 55.87 0.52
STFR St. Francis Cap. Corp. of WI 42.25 5,223 220.7 50.75 29.50 41.25 2.42 40.83 -16.34
SPBC St. Paul Bancorp, Inc. of IL 24.88 34,311 853.7 28.50 21.58 25.25 -1.47 13.97 -5.22
SFFC StateFed Financial Corp. of IA 14.38 1,563 22.5 15.00 9.25 14.38 0.00 55.46 -2.51
SFIN Statewide Fin. Corp. of NJ 22.25 4,519 100.5 26.69 16.25 23.00 -3.26 34.85 -7.29
STSA Sterling Financial Corp. of WA 25.88 7,596 196.6 27.63 17.50 26.25 -1.41 39.89 18.99
SFSB SuburbFed Fin. Corp. of IL(8) 47.25 1,270 60.0 50.00 24.00 48.75 -3.08 96.88 -5.50
ROSE T R Financial Corp. of NY* 42.25 17,530 740.6 44.75 21.63 44.75 -5.59 101.19 27.07
THRD TF Financial Corp. of PA 26.00 3,189 82.9 30.00 17.94 26.38 -1.44 45.41 -13.33
TPNZ Tappan Zee Fin., Inc. of NY(8) 20.13 1,478 29.8 22.63 16.50 20.13 0.00 15.82 7.36
TSBK Timberland Bancorp of WA 16.88 6,092 102.8 18.50 14.50 17.25 -2.14 68.80 68.80
TRIC Tri-County Bancorp of WY 14.75 1,167 17.2 16.50 10.13 15.25 -3.28 43.90 -1.67
TWIN Twin City Bancorp, Inc. of TN 13.75 1,260 17.3 15.50 12.33 14.00 -1.79 11.52 -11.29
USAB USABancshares, Inc of PA* 14.50 1,502 21.8 15.50 6.56 14.00 3.57 108.93 45.00
UCBC Union Community Bancorp of IN 14.88 3,042 45.3 15.81 13.94 14.69 1.29 48.80 1.71
UFRM United FSB of Rocky Mount NC(8) 18.00 3,263 58.7 21.00 10.50 17.69 1.75 65.44 -8.30
UBMT United Fin. Corp. of MT 27.88 1,698 47.3 31.50 25.63 29.50 -5.49 N.A. N.A.
UTBI United Tenn. Bancshares of TN 14.88 1,455 21.7 16.00 13.63 14.88 0.00 48.80 48.80
WHGB WHG Bancshares of MD 16.00 1,389 22.2 19.00 13.75 16.75 -4.48 12.28 -14.67
WSFS WSFS Financial Corp. of DE* 21.25 12,464 264.9 23.88 12.75 21.25 0.00 66.67 6.25
WVFC WVS Financial Corp. of PA 18.50 3,616 66.9 20.13 12.22 18.75 -1.33 51.76 4.93
WRNB Warren Bancorp of Peabody MA* 12.00 7,664 92.0 14.38 8.63 12.38 -3.07 31.43 4.35
WSBI Warwick Community Bncrp of NY* 16.88 6,607 111.5 18.00 15.38 17.00 -0.71 68.80 -2.88
WFSL Washington Federal, Inc. of WA 28.25 52,405 1,480.4 30.29 23.24 27.81 1.58 25.22 -1.15
WAMU Washington Mutual, Inc. of WA* 46.50 386,832 17,987.7 50.92 36.75 46.62 -0.26 27.68 9.31
WYNE Wayne Bancorp, Inc. of NJ 31.38 2,013 63.2 32.00 18.13 31.63 -0.79 79.31 17.31
WAYN Wayne Svgs Bks MHC of OH (47.8 28.00 2,484 30.1 30.00 15.46 27.25 2.75 72.73 6.22
WCFB Wbstr Cty FSB MHC of IA (45.2) 18.88 2,112 17.9 22.00 14.00 19.63 -3.82 28.00 -5.60
WBST Webster Financial Corp. of CT 32.88 27,411 901.3 36.25 20.56 33.75 -2.58 59.92 -1.11
WEFC Wells Fin. Corp. of Wells MN 21.50 1,959 42.1 22.00 14.00 21.00 2.38 45.76 20.25
WCBI WestCo Bancorp, Inc. of IL 30.50 2,462 75.1 30.50 23.81 30.38 0.39 29.07 11.93
WSTR WesterFed Fin. Corp. of MT 24.88 5,584 138.9 27.00 20.13 24.50 1.55 22.08 -2.43
WOFC Western Ohio Fin. Corp. of OH 25.50 2,352 60.0 29.25 21.00 26.00 -1.92 18.60 -5.13
WEHO Westwood Hmstd Fin Corp of OH 12.75 2,843 36.2 18.13 12.63 13.50 -5.56 -3.77 -25.00
FFWD Wood Bancorp of OH 17.50 2,662 46.6 27.00 8.53 17.00 2.94 105.16 -6.91
YFCB Yonkers Fin. Corp. of NY 18.94 3,016 57.1 22.00 14.63 18.38 3.05 24.20 -1.61
YFED York Financial Corp. of PA 21.75 8,924 194.1 27.25 15.50 22.19 -1.98 37.66 -15.53
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)
- ---------------------------------------
SWCB Sandwich Bancorp of MA(8)* 2.57 2.47 21.87 21.18 270.57
SFSL Security First Corp. of OH(8) 1.23 1.23 8.56 8.44 90.73
SKAN Skaneateles Bancorp Inc of NY* 1.12 1.09 12.48 12.16 178.89
SOBI Sobieski Bancorp of S. Bend IN 0.64 0.64 16.58 16.58 117.60
SOSA Somerset Savings Bank of MA(8)* 0.46 0.44 2.31 2.31 31.87
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 12.73 12.73 62.34
SMBC Southern Missouri Bncrp of MO 0.70 0.66 16.45 16.45 98.09
SWBI Southwest Bancshares of IL(8) 1.54 1.51 16.38 16.38 140.95
SVRN Sovereign Bancorp, Inc. of PA 0.46 0.70 6.70 5.75 136.14
STFR St. Francis Cap. Corp. of WI 2.48 2.39 25.25 22.56 315.50
SPBC St. Paul Bancorp, Inc. of IL 1.44 1.41 12.48 12.43 133.58
SFFC StateFed Financial Corp. of IA 0.70 0.70 10.16 10.16 57.31
SFIN Statewide Fin. Corp. of NJ 1.22 1.21 14.59 14.56 148.39
STSA Sterling Financial Corp. of WA 1.26 1.10 13.93 12.98 248.58
SFSB SuburbFed Fin. Corp. of IL(8) 2.15 1.64 23.65 23.58 351.56
ROSE T R Financial Corp. of NY* 2.09 1.85 14.05 14.05 228.51
THRD TF Financial Corp. of PA 1.47 1.24 15.99 13.46 200.52
TPNZ Tappan Zee Fin., Inc. of NY(8) 0.70 0.67 14.56 14.56 85.57
TSBK Timberland Bancorp of WA 0.63 0.60 13.79 13.79 42.92
TRIC Tri-County Bancorp of WY 0.77 0.80 12.03 12.03 76.49
TWIN Twin City Bancorp, Inc. of TN 0.88 0.73 11.17 11.17 87.59
USAB USABancshares, Inc of PA* 0.09 0.16 8.53 8.48 68.27
UCBC Union Community Bancorp of IN 0.47 0.47 14.22 14.22 35.53
UFRM United FSB of Rocky Mount NC(8) 0.54 0.35 7.02 7.02 93.67
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 0.54 0.55 14.34 14.34 72.95
WSFS WSFS Financial Corp. of DE* 1.31 1.30 6.96 6.92 121.57
WVFC WVS Financial Corp. of PA 1.03 1.04 8.61 8.61 80.76
WRNB Warren Bancorp of Peabody MA* 0.95 0.85 5.22 5.22 48.41
WSBI Warwick Community Bncrp of NY* 0.55 0.55 12.60 12.60 53.02
WFSL Washington Federal, Inc. of WA 2.06 2.04 14.06 12.97 109.02
WAMU Washington Mutual, Inc. of WA* 0.89 1.59 13.42 12.50 250.71
WYNE Wayne Bancorp, Inc. of NJ 0.97 0.97 16.86 16.86 134.15
WAYN Wayne Svgs Bks MHC of OH (47.8 0.76 0.71 9.74 9.74 102.71
WCFB Wbstr Cty FSB MHC of IA (45.2) 0.65 0.65 10.58 10.58 45.04
WBST Webster Financial Corp. of CT 1.15 1.75 13.94 12.16 256.09
WEFC Wells Fin. Corp. of Wells MN 1.13 1.10 15.13 15.13 102.83
WCBI WestCo Bancorp, Inc. of IL 1.91 1.78 19.73 19.73 128.33
WSTR WesterFed Fin. Corp. of MT 1.30 1.26 19.28 15.67 185.37
WOFC Western Ohio Fin. Corp. of OH 0.06 0.14 23.21 21.69 158.16
WEHO Westwood Hmstd Fin Corp of OH 0.31 0.49 10.60 10.60 47.22
FFWD Wood Bancorp of OH 0.89 0.76 8.18 8.18 61.99
YFCB Yonkers Fin. Corp. of NY 1.03 1.01 14.90 14.90 110.01
YFED York Financial Corp. of PA 1.25 1.04 11.74 11.74 132.48
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 June 5, 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(291) 13.96 13.63 0.93 8.02 4.57 0.88 7.55 0.67 137.69 0.79
NYSE Traded Companies(8) 8.29 8.01 1.19 14.44 6.35 0.63 9.34 1.64 103.88 1.32
AMEX Traded Companies(22) 14.52 14.38 0.87 6.21 4.30 0.83 5.68 0.46 179.35 0.73
NASDAQ Listed OTC Companies(260) 14.00 13.72 0.93 8.03 4.56 0.89 7.69 0.66 135.57 0.79
California Companies(19) 8.00 7.65 0.65 9.01 5.70 0.56 8.35 1.41 96.13 1.26
Florida Companies(6) 10.42 9.98 1.13 12.18 4.55 0.62 6.78 1.44 87.72 0.83
Mid-Atlantic Companies(58) 11.31 10.58 0.82 8.34 4.73 0.81 8.13 0.75 107.46 0.93
Mid-West Companies(133) 14.59 14.36 0.95 7.47 4.40 0.91 7.13 0.56 144.07 0.68
New England Companies(8) 7.69 7.39 0.60 8.35 4.79 0.64 8.97 0.45 194.08 1.01
North-West Companies(11) 18.25 17.91 1.16 9.70 4.50 1.03 8.67 0.68 249.01 0.76
South-East Companies(44) 17.81 17.65 1.08 7.75 4.26 1.03 7.25 0.62 133.35 0.79
South-West Companies(6) 11.26 11.16 0.98 10.39 6.59 0.95 10.16 0.45 117.24 0.59
Western Companies (Excl CA)(6) 18.98 18.59 1.05 6.07 4.24 1.06 6.09 0.45 214.01 0.94
Thrift Strategy(244) 15.02 14.70 0.96 7.61 4.62 0.92 7.28 0.63 139.02 0.75
Mortgage Banker Strategy(29) 7.67 7.11 0.72 9.55 3.85 0.67 9.16 0.73 143.92 0.93
Real Estate Strategy(8) 7.35 7.11 0.85 11.94 5.50 0.78 11.07 1.26 106.47 1.62
Diversified Strategy(7) 8.71 8.49 1.29 14.90 6.04 0.72 9.74 1.46 136.93 1.09
Retail Banking Strategy(3) 6.76 6.48 0.21 4.77 1.36 0.15 3.51 1.04 67.45 1.16
Companies Issuing Dividends(243) 13.77 13.49 0.97 8.28 4.77 0.91 7.75 0.63 140.47 0.77
Companies Without Dividends(48) 14.94 14.36 0.77 6.66 3.57 0.72 6.51 0.92 122.35 0.93
Equity/Assets < 6%(21) 5.03 4.77 0.53 10.80 4.25 0.59 11.79 1.07 95.39 0.93
Equity/Assets 6-12%(132) 8.87 8.49 0.83 9.57 4.99 0.75 8.71 0.69 138.41 0.90
Equity/Assets > 12%(138) 19.86 19.56 1.09 6.21 4.25 1.04 5.88 0.61 143.22 0.68
Converted Last 3 Mths (no MHC)(11) 24.08 22.32 1.01 5.42 3.32 0.92 5.05 0.38 128.91 0.83
Actively Traded Companies(34) 9.61 9.29 1.00 11.11 4.84 1.02 11.87 0.86 155.81 0.98
Market Value Below $20 Million(46) 15.77 15.65 0.92 6.25 4.88 0.84 5.64 0.61 107.56 0.67
Holding Company Structure(266) 14.20 13.87 0.94 7.95 4.60 0.89 7.49 0.69 135.35 0.79
Assets Over $1 Billion(59) 8.77 8.14 0.86 11.10 5.12 0.80 10.54 0.92 119.95 0.99
Assets $500 Million-$1 Billion(40) 10.10 9.85 0.86 8.84 4.05 0.81 8.54 0.58 160.79 0.87
Assets $250-$500 Million(70) 13.17 12.86 0.94 8.33 4.73 0.88 7.77 0.66 162.69 0.82
Assets less than $250 Million(122) 17.84 17.60 0.99 6.25 4.41 0.93 5.81 0.60 125.22 0.67
Goodwill Companies(118) 10.25 9.59 0.87 9.67 4.86 0.81 9.01 0.75 120.96 0.88
Non-Goodwill Companies(173) 16.37 16.26 0.98 6.94 4.39 0.93 6.60 0.62 149.15 0.74
Acquirors of FSLIC Cases(8) 8.90 8.40 1.00 11.89 5.84 0.95 11.29 0.89 56.32 0.59
Pricing Ratios Dividend Data(6)
---------------------------------------- ------------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------ ------ ------ -------- ------- ------ -------
(X) (%) (%) (%) (x) ($) (%) (%)
Market Averages. SAIF-Insured Thrifts(no MHCs)
- ----------------------------------------------
SAIF-Insured Thrifts(291) 20.04 157.56 20.10 163.73 20.73 0.34 1.64 30.64
NYSE Traded Companies(8) 17.39 218.70 18.78 202.97 18.76 0.21 0.62 9.08
AMEX Traded Companies(22) 20.64 134.94 18.86 137.16 21.11 0.31 1.73 33.40
NASDAQ Listed OTC Companies(260) 20.07 158.22 20.19 164.69 20.74 0.35 1.67 31.16
California Companies(19) 17.37 151.86 11.80 161.66 18.25 0.18 0.61 13.38
Florida Companies(6) 20.66 200.26 20.58 188.18 23.86 0.24 1.05 23.49
Mid-Atlantic Companies(58) 19.76 164.56 17.31 178.37 20.57 0.34 1.47 30.41
Mid-West Companies(133) 19.66 154.60 20.45 158.64 20.36 0.34 1.69 29.94
New England Companies(8) 19.24 165.13 12.33 174.29 19.65 0.36 1.61 29.45
North-West Companies(11) 22.03 164.45 26.01 169.88 22.91 0.32 1.36 30.72
South-East Companies(44) 22.42 155.16 25.21 160.21 22.80 0.43 2.21 40.55
South-West Companies(6) 14.38 143.39 15.21 149.08 14.45 0.29 1.33 26.42
Western Companies (Excl CA)(6) 22.41 134.04 26.18 139.98 22.31 0.53 2.57 51.04
Thrift Strategy(244) 20.32 150.03 20.79 155.66 20.75 0.35 1.75 32.16
Mortgage Banker Strategy(29) 18.80 197.80 15.67 218.64 21.23 0.28 1.01 23.07
Real Estate Strategy(8) 19.07 199.33 14.48 204.84 18.78 0.25 0.85 17.17
Diversified Strategy(7) 16.74 247.60 21.65 235.60 21.18 0.39 1.38 26.80
Retail Banking Strategy(3) 16.42 163.14 10.55 169.11 18.10 0.15 0.71 17.60
Companies Issuing Dividends(243) 20.10 159.35 20.10 166.09 20.88 0.41 1.96 36.73
Companies Without Dividends(48) 19.58 148.45 20.06 151.47 19.54 0.00 0.00 0.00
Equity/Assets < 6%(21) 18.20 210.71 10.71 224.53 18.99 0.17 0.61 12.41
Equity/Assets 6-12%(132) 18.91 176.87 15.58 186.89 19.98 0.35 1.52 27.57
Equity/Assets > 12%(138) 21.53 132.67 25.54 134.09 21.81 0.36 1.90 36.31
Converted Last 3 Mths (no MHC)(11) 25.74 123.71 29.72 141.90 26.06 0.18 1.18 15.13
Actively Traded Companies(34) 17.56 206.88 18.90 218.57 18.66 0.44 1.51 29.13
Market Value Below $20 Million(46) 20.27 125.09 18.85 125.87 21.70 0.33 1.98 35.79
Holding Company Structure(266) 20.10 157.14 20.39 163.20 20.76 0.35 1.64 30.64
Assets Over $1 Billion(59) 18.92 197.07 16.51 213.20 19.60 0.34 1.15 23.48
Assets $500 Million-$1 Billion(40) 19.26 181.99 17.72 188.01 20.46 0.38 1.54 32.93
Assets $250-$500 Million(70) 19.90 157.94 19.52 163.63 20.54 0.32 1.44 26.94
Assets less than $250 Million(122) 20.94 132.61 22.70 135.11 21.47 0.35 2.00 35.67
Goodwill Companies(118) 19.29 179.68 17.01 193.70 20.27 0.36 1.45 26.71
Non-Goodwill Companies(173) 20.56 143.00 22.10 144.20 21.05 0.34 1.77 33.21
Acquirors of FSLIC Cases(8) 17.51 188.21 16.52 199.95 17.54 0.47 1.63 26.84
(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 June 5, 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(58) 11.59 11.27 1.06 10.88 5.24 1.03 10.39 0.64 176.97 1.29
NYSE Traded Companies(5) 17.14 15.93 1.10 8.28 3.84 1.18 8.51 1.35 65.41 1.00
AMEX Traded Companies(5) 12.36 12.02 1.07 10.24 5.59 0.90 8.34 1.05 84.96 1.20
NASDAQ Listed OTC Companies(48) 10.87 10.66 1.06 11.24 5.36 1.02 10.84 0.53 194.59 1.33
California Companies(1) 10.18 10.14 1.43 13.51 7.68 1.43 13.51 1.31 102.95 1.63
Mid-Atlantic Companies(20) 13.77 13.26 0.96 8.49 3.95 0.95 8.34 0.75 130.00 1.17
New England Companies(31) 9.77 9.53 1.13 12.86 6.13 1.05 11.74 0.61 200.27 1.47
North-West Companies(3) 9.16 9.04 1.03 11.77 4.79 1.16 14.26 0.31 399.42 1.01
South-East Companies(3) 17.69 17.54 1.01 5.73 4.76 1.06 5.96 0.25 148.78 0.51
Thrift Strategy(44) 12.73 12.43 1.06 10.01 5.11 1.02 9.32 0.62 166.83 1.20
Mortgage Banker Strategy(6) 8.50 8.16 1.01 12.66 5.73 0.95 11.77 0.41 304.65 1.20
Real Estate Strategy(3) 10.48 10.46 1.72 16.49 7.80 1.61 15.47 1.16 105.13 1.63
Diversified Strategy(5) 6.40 5.83 0.88 13.62 4.73 0.98 15.49 0.81 151.00 1.95
Companies Issuing Dividends(50) 10.84 10.47 1.06 11.17 5.23 1.02 10.62 0.65 175.99 1.28
Companies Without Dividends(8) 16.64 16.62 1.09 8.87 5.33 1.09 8.86 0.55 182.73 1.29
Equity/Assets < 6%(5) 5.19 4.87 0.87 16.45 4.92 0.77 14.51 0.88 92.00 1.34
Equity/Assets 6-12%(36) 8.69 8.34 1.11 12.75 6.09 1.06 12.19 0.76 198.48 1.46
Equity/Assets > 12%(17) 18.94 18.67 1.03 5.72 3.74 1.03 5.81 0.34 162.76 0.95
Converted Last 3 Mths (no MHC)(2) 16.65 16.06 0.99 5.56 2.89 0.86 4.73 0.71 86.68 0.98
Actively Traded Companies(17) 9.79 9.39 1.24 13.44 6.12 1.17 12.62 0.52 166.76 1.09
Market Value Below $20 Million(1) 10.06 10.06 0.85 8.88 6.71 0.74 7.75 0.50 358.51 2.48
Holding Company Structure(46) 12.61 12.36 1.07 10.25 5.12 1.04 9.84 0.53 177.30 1.27
Assets Over $1 Billion(18) 10.73 10.05 1.06 11.30 4.69 1.10 11.70 0.80 154.49 1.39
Assets $500 Million-$1 Billion(13) 9.50 9.25 1.11 12.19 5.86 0.99 10.56 0.62 159.32 1.26
Assets $250-$500 Million(12) 12.29 12.12 1.18 11.36 6.03 1.12 10.77 0.66 207.44 1.46
Assets less than $250 Million(15) 13.40 13.32 0.94 9.13 4.82 0.89 8.49 0.45 189.72 1.04
Goodwill Companies(30) 9.74 9.10 0.96 11.01 5.13 0.93 10.49 0.83 148.94 1.29
Non-Goodwill Companies(27) 13.16 13.16 1.17 10.98 5.41 1.13 10.52 0.44 209.12 1.29
Pricing Ratios Dividend Data(6)
---------------------------------------- ------------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------ ------ ------ -------- ------- ------ -------
(X) (%) (%) (%) (x) ($) (%) (%)
Market Averages. BIF-Insured Thrifts(no MHCs)
- ---------------------------------------------
BIF-Insured Thrifts(58) 18.25 191.21 20.29 187.16 19.40 0.41 1.56 29.55
NYSE Traded Companies(5) 23.50 190.65 28.00 186.33 25.70 0.54 1.25 34.54
AMEX Traded Companies(5) 19.34 166.52 18.88 173.43 21.38 0.39 1.75 30.98
NASDAQ Listed OTC Companies(48) 17.50 194.15 19.58 188.96 18.27 0.39 1.57 28.78
California Companies(1) 13.02 165.64 16.85 166.14 13.02 0.00 0.00 0.00
Mid-Atlantic Companies(20) 21.14 190.98 24.43 184.42 21.81 0.41 1.30 32.49
New England Companies(31) 17.55 193.47 17.49 195.65 17.91 0.41 1.63 27.95
North-West Companies(3) 16.05 244.59 19.39 193.63 20.60 0.48 1.80 29.52
South-East Companies(3) 12.93 126.74 22.32 128.11 23.12 0.41 2.72 38.86
Thrift Strategy(44) 18.53 178.78 21.22 175.90 19.57 0.42 1.60 31.22
Mortgage Banker Strategy(6) 17.99 209.63 16.80 224.57 19.66 0.29 1.18 21.00
Real Estate Strategy(3) 12.82 197.76 20.82 198.01 13.57 0.18 1.50 18.95
Diversified Strategy(5) 19.15 265.95 16.63 247.67 20.35 0.51 1.64 30.94
Companies Issuing Dividends(50) 18.53 198.60 19.95 194.54 19.73 0.47 1.79 34.14
Companies Without Dividends(8) 15.51 142.68 22.61 142.90 16.08 0.00 0.00 0.00
Equity/Assets < 6%(5) 18.10 303.41 15.79 310.19 24.06 0.36 1.17 18.15
Equity/Assets 6-12%(36) 17.16 195.97 17.43 195.43 17.67 0.46 1.69 30.21
Equity/Assets > 12%(17) 22.09 149.54 27.00 141.41 22.72 0.32 1.41 31.08
Converted Last 3 Mths (no MHC)(2) 26.43 220.46 32.53 117.29 26.43 0.05 0.50 25.00
Actively Traded Companies(17) 16.58 212.37 19.14 206.85 18.85 0.59 1.83 30.73
Market Value Below $20 Million(1) 14.89 126.13 12.68 126.13 17.07 0.00 0.00 0.00
Holding Company Structure(46) 18.15 183.47 21.22 177.48 19.44 0.41 1.56 29.94
Assets Over $1 Billion(18) 20.29 219.39 22.09 212.45 21.25 0.56 1.55 35.12
Assets $500 Million-$1 Billion(13) 15.17 205.85 19.00 197.58 15.88 0.45 1.74 32.03
Assets $250-$500 Million(12) 17.49 171.20 19.32 174.66 18.45 0.26 1.43 24.43
Assets less than $250 Million(15) 18.66 167.42 19.90 168.99 20.07 0.32 1.53 25.79
Goodwill Companies(30) 17.62 205.62 18.75 199.48 20.01 0.41 1.46 28.69
Non-Goodwill Companies(27) 18.53 178.62 21.74 178.62 18.34 0.42 1.71 31.62
(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 June 5, 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(17) 12.63 12.41 0.82 6.90 2.71 0.78 6.46 0.52 154.92 0.88
BIF-Insured Thrifts(3) 11.01 9.97 0.88 8.58 3.56 0.64 6.01 0.75 139.39 1.19
NASDAQ Listed OTC Companies(20) 12.37 12.03 0.83 7.16 2.84 0.76 6.39 0.56 152.33 0.93
Florida Companies(2) 8.75 8.65 0.70 7.55 3.35 0.62 6.70 0.29 105.15 0.46
Mid-Atlantic Companies(10) 11.81 11.46 0.78 6.98 2.65 0.73 6.54 0.65 145.53 0.90
Mid-West Companies(5) 12.64 12.26 0.87 7.05 2.93 0.81 6.44 0.45 176.48 0.64
New England Companies(2) 13.20 12.53 0.98 9.00 3.15 0.71 5.88 0.64 206.44 2.03
South-East Companies(1) 22.48 22.48 1.13 5.02 2.73 1.13 5.02 0.32 134.01 0.92
Thrift Strategy(18) 12.81 12.55 0.80 6.57 2.81 0.76 6.19 0.54 157.13 0.88
Mortgage Banker Strategy(1) 8.12 7.30 0.88 10.93 2.26 0.72 8.95 0.66 60.87 0.99
Diversified Strategy(1) 9.23 7.91 1.18 13.44 3.91 0.63 7.21 0.66 166.94 1.76
Companies Issuing Dividends(17) 11.46 11.05 0.83 7.62 2.80 0.74 6.70 0.59 142.99 0.83
Companies Without Dividends(3) 17.22 17.22 0.82 4.71 3.03 0.82 4.71 0.40 199.04 1.44
Equity/Assets 6-12%(12) 9.46 8.91 0.76 8.06 2.74 0.65 6.84 0.68 92.57 0.85
Equity/Assets > 12%(8) 17.37 17.37 0.94 5.63 3.02 0.93 5.60 0.35 246.24 1.07
Holding Company Structure(3) 11.09 10.49 0.73 6.78 3.16 0.66 6.10 0.79 125.62 0.90
Assets Over $1 Billion(6) 10.35 9.80 0.83 8.69 3.17 0.70 7.12 0.53 142.65 1.22
Assets $500 Million-$1 Billion(2) 9.01 8.25 0.71 7.44 3.08 0.68 7.22 0.31 128.55 0.58
Assets $250-$500 Million(4) 11.35 11.35 0.78 6.68 2.30 0.76 6.38 0.56 257.76 0.75
Assets less than $250 Million(8) 15.66 15.40 0.88 6.05 2.80 0.82 5.52 0.64 122.24 0.86
Goodwill Companies(6) 8.65 7.55 0.88 9.85 3.10 0.72 8.04 0.67 91.51 0.88
Non-Goodwill Companies(14) 14.09 14.09 0.80 5.93 2.72 0.77 5.62 0.50 182.74 0.96
MHC Institutions(20) 12.37 12.03 0.83 7.16 2.84 0.76 6.39 0.56 152.33 0.93
MHC Converted Last 3 Months(3) 17.22 17.22 0.82 4.71 3.03 0.82 4.71 0.40 199.04 1.44
Pricing Ratios Dividend Data(6)
---------------------------------------- ------------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------ ------ ------ -------- ------- ------ -------
(X) (%) (%) (%) (x) ($) (%) (%)
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(17) 28.61 218.51 29.40 224.14 29.49 0.40 1.63 43.10
BIF-Insured Thrifts(3) 25.32 225.44 24.18 257.89 25.10 0.35 1.04 29.54
NASDAQ Listed OTC Companies(20) 27.30 219.81 28.57 230.47 28.02 0.39 1.54 40.20
Florida Companies(2) 26.87 217.57 18.97 220.98 0.00 0.90 2.87 0.00
Mid-Atlantic Companies(10) 27.51 209.72 29.27 216.72 27.51 0.26 1.23 41.56
Mid-West Companies(5) 29.05 237.60 27.87 254.20 29.05 0.54 2.24 57.96
New England Companies(2) 25.54 239.65 29.68 263.82 0.00 0.42 1.10 28.19
South-East Companies(1) 0.00 184.00 41.37 184.00 0.00 0.00 0.00 0.00
Thrift Strategy(18) 27.74 215.21 28.22 223.36 28.02 0.37 1.53 38.87
Mortgage Banker Strategy(1) 0.00 0.00 36.51 0.00 0.00 0.22 0.90 40.00
Diversified Strategy(1) 25.54 288.77 26.66 337.11 0.00 0.84 2.21 56.38
Companies Issuing Dividends(17) 27.85 232.91 28.44 246.03 29.49 0.46 1.82 51.16
Companies Without Dividends(3) 25.10 163.03 29.28 163.03 25.10 0.00 0.00 0.00
Equity/Assets 6-12%(12) 26.21 251.72 26.90 270.67 0.00 0.46 1.62 50.17
Equity/Assets > 12%(8) 28.02 178.78 31.44 178.78 28.02 0.27 1.40 22.25
Holding Company Structure(3) 25.10 225.01 24.38 241.34 25.10 0.25 0.97 35.31
Assets Over $1 Billion(6) 25.84 203.71 25.92 217.50 25.10 0.35 1.21 26.55
Assets $500 Million-$1 Billion(2) 0.00 232.85 20.63 266.05 0.00 0.69 1.96 41.38
Assets $250-$500 Million(4) 29.92 272.25 32.56 272.25 29.92 0.43 1.78 65.87
Assets less than $250 Million(8) 29.05 202.80 30.83 209.80 29.05 0.31 1.56 42.82
Goodwill Companies(6) 26.21 258.58 26.55 301.22 0.00 0.47 1.58 41.28
Non-Goodwill Companies(14) 28.02 206.88 29.51 206.88 28.02 0.35 1.52 39.60
MHC Institutions(20) 27.30 219.81 28.57 230.47 28.02 0.39 1.54 40.20
MHC Converted Last 3 Months(3) 25.10 163.03 29.28 163.03 25.10 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 June 5, 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 0.82 18.69 4.81 0.77 17.61 2.14 41.19 1.32
BYS Bay State Bancorp of MA* 20.71 20.71 0.92 4.44 3.78 0.92 4.44 0.77 110.27 1.10
CFB Commercial Federal Corp. of NE 6.91 6.04 0.81 12.90 4.50 0.95 15.06 0.83 79.52 0.88
DME Dime Bancorp, Inc. of NY* 5.90 4.83 0.72 12.65 4.25 0.58 10.18 1.03 48.09 0.66
DSL Downey Financial Corp. of CA 7.60 7.51 0.87 12.02 5.25 0.89 12.29 0.85 63.98 0.59
FED FirstFed Fin. Corp. of CA 5.72 5.68 0.63 12.23 4.88 0.61 11.83 0.89 236.92 2.68
GSB Golden State Bancorp of CA(8) 6.04 5.45 0.66 11.61 5.91 0.72 12.58 0.99 92.79 1.22
GDW Golden West Fin. Corp. of CA 7.10 7.10 0.95 14.35 6.15 0.96 14.41 1.02 58.45 0.72
GPT GreenPoint Fin. Corp. of NY* 9.67 5.40 1.08 10.71 4.10 1.11 11.10 2.73 30.41 1.22
JSB JSB Financial, Inc. of NY* 23.21 23.21 1.92 8.59 5.08 1.71 7.64 NA NA 0.56
OCN Ocwen Financial Corp. of FL 13.08 12.39 2.83 24.05 5.64 0.55 4.67 5.68 12.11 1.19
SIB Staten Island Bancorp of NY* 26.20 25.53 0.86 5.00 2.01 1.59 9.19 0.85 72.87 1.44
WES Westcorp Inc. of Orange CA 9.35 9.33 1.03 11.08 11.67 -0.21 -2.22 0.55 172.31 1.88
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 15.34 15.34 1.07 6.44 4.88 1.00 6.04 0.33 292.15 1.28
ANE Alliance Bncp of New Eng of CT* 7.97 7.78 0.89 12.20 5.75 0.52 7.15 1.51 82.82 1.96
BKC American Bank of Waterbury CT* 9.01 8.74 1.33 15.40 6.41 1.11 12.88 2.28 40.39 1.54
BFD BostonFed Bancorp of MA 7.87 7.59 0.72 8.51 5.53 0.61 7.20 0.15 467.89 0.84
CNY Carver Bancorp, Inc. of NY 8.48 8.16 -0.11 -1.33 -1.50 0.02 0.20 NA NA 1.04
CBK Citizens First Fin.Corp. of IL 13.84 13.84 0.72 5.13 3.87 0.45 3.22 0.71 47.08 0.41
EFC EFC Bancorp Inc of IL 23.77 23.77 1.07 4.51 4.15 1.07 4.51 0.46 57.60 0.45
EBI Equality Bancorp, Inc. of MO 11.18 11.18 0.53 7.30 3.46 0.12 1.59 0.39 31.69 0.25
ESX Essex Bancorp of Norfolk VA(8) 0.02 -0.08 -0.11 NM -5.51 -0.11 NM 1.69 71.25 1.33
FCB Falmouth Bancorp, Inc. of MA* 22.41 22.41 1.02 4.33 3.40 0.81 3.44 0.05 NA 0.74
FAB FirstFed America Bancorp of MA 11.17 11.17 0.17 1.58 0.99 0.53 4.99 0.31 275.70 1.16
GAF GA Financial Corp. of PA 14.01 13.88 1.09 7.23 5.43 1.03 6.84 0.21 81.02 0.42
HBS Haywood Bancshares, Inc. of NC* 14.85 14.38 1.46 10.18 7.74 1.46 10.18 0.37 131.68 0.65
KNK Kankakee Bancorp, Inc. of IL 9.64 8.02 0.86 7.99 6.20 0.83 7.77 1.12 55.72 0.98
KYF Kentucky First Bancorp of KY 17.04 17.04 1.13 6.76 5.02 1.11 6.68 0.18 263.19 0.76
NBN Northeast Bancorp of ME* 7.54 6.81 0.66 9.10 4.68 0.58 8.02 NA NA 1.12
NEP Northeast PA Fin. Corp of PA 18.26 18.26 0.62 3.38 2.90 0.62 3.38 0.22 178.76 0.64
PDB Piedmont Bancorp, Inc. of NC 16.09 16.09 1.24 7.56 5.92 1.22 7.43 0.48 142.37 0.82
SSB Scotland Bancorp, Inc. of NC 24.70 24.70 1.47 5.01 5.56 1.47 5.01 NA NA 0.60
SZB SouthFirst Bancshares of AL 10.07 9.83 0.55 4.64 3.54 0.52 4.37 1.04 46.23 0.75
SRN Southern Banc Company of AL 17.08 16.93 0.48 2.77 2.54 0.48 2.77 NA NA 0.19
SSM Stone Street Bancorp of NC 27.99 27.99 1.37 4.54 3.91 1.37 4.54 0.28 191.69 0.62
TSH Teche Holding Company of LA 13.83 13.83 0.93 6.90 5.55 0.92 6.84 0.20 423.05 0.98
FTF Texarkana Fst. Fin. Corp of AR 15.22 15.22 1.76 11.39 5.95 1.73 11.20 0.23 267.38 0.76
THR Three Rivers Fin. Corp. of MI 13.46 13.42 0.88 6.42 5.14 0.84 6.10 1.00 48.12 0.74
WSB Washington SB, FSB of MD 8.67 8.67 0.77 9.15 6.45 0.55 6.56 NA NA 0.99
WFI Winton Financial Corp. of OH 7.17 7.03 1.05 14.60 4.87 0.86 12.04 NA NA NA
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN 9.02 8.87 0.75 8.78 6.50 0.51 5.98 1.71 26.55 0.62
FBER 1st Bergen Bancorp of NJ 11.69 11.69 0.75 5.40 4.08 0.75 5.40 0.95 104.08 2.38
AFED AFSALA Bancorp, Inc. of NY(8) 12.52 12.52 0.78 5.89 4.51 0.78 5.89 0.37 185.39 1.46
ALBK ALBANK Fin. Corp. of Albany NY 8.97 7.02 1.16 12.76 6.53 1.14 12.61 0.92 78.98 1.05
AMFC AMB Financial Corp. of IN 14.11 14.11 1.02 6.89 5.75 0.58 3.93 0.33 122.66 0.52
ASBP ASB Financial Corp. of OH 15.20 15.20 0.96 6.17 4.00 0.94 6.08 0.14 513.38 1.03
ABBK Abington Bancorp of MA* 6.29 5.72 0.86 12.72 6.76 0.73 10.78 0.14 310.69 0.72
AABC Access Anytime Bancorp of NM 8.09 8.09 1.45 18.31 11.13 1.35 17.02 0.14 335.63 0.77
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) 20.78 279.39 15.22 NM 22.05 0.88 1.16 24.18
BYS Bay State Bancorp of MA* 26.43 117.29 24.29 117.29 26.43 0.00 0.00 0.00
CFB Commercial Federal Corp. of NE 22.23 226.45 15.66 259.03 19.04 0.22 0.66 14.77
DME Dime Bancorp, Inc. of NY* 23.54 265.00 15.63 323.63 29.25 0.20 0.66 15.63
DSL Downey Financial Corp. of CA 19.06 216.06 16.42 218.54 18.65 0.32 0.93 17.78
FED FirstFed Fin. Corp. of CA 20.48 229.52 13.12 231.10 21.17 0.00 0.00 0.00
GSB Golden State Bancorp of CA(8) 16.91 183.02 11.05 202.82 15.61 0.00 0.00 0.00
GDW Golden West Fin. Corp. of CA 16.27 215.48 15.29 215.48 16.19 0.50 0.47 7.67
GPT GreenPoint Fin. Corp. of NY* 24.37 270.23 26.14 NM 23.53 0.64 1.56 38.10
JSB JSB Financial, Inc. of NY* 19.68 162.51 37.72 162.51 22.14 1.60 2.74 53.87
OCN Ocwen Financial Corp. of FL 17.72 334.19 43.71 NM NM 0.00 0.00 0.00
SIB Staten Island Bancorp of NY* NM 138.23 36.22 141.89 27.14 0.28 1.31 65.12
WES Westcorp Inc. of Orange CA 8.57 90.50 8.46 90.70 NM 0.20 1.67 14.29
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 20.51 133.68 20.51 133.68 21.85 0.44 1.88 38.60
ANE Alliance Bncp of New Eng of CT* 17.39 191.28 15.25 195.98 29.67 0.13 0.86 14.94
BKC American Bank of Waterbury CT* 15.61 218.94 19.74 225.92 18.67 0.76 2.75 42.94
BFD BostonFed Bancorp of MA 18.08 156.88 12.35 162.74 21.36 0.40 1.70 30.77
CNY Carver Bancorp, Inc. of NY NM 87.34 7.41 90.79 NM 0.00 0.00 NM
CBK Citizens First Fin.Corp. of IL 25.81 131.83 18.24 131.83 NM 0.00 0.00 0.00
EFC EFC Bancorp Inc of IL 24.11 108.70 25.84 108.70 24.11 0.00 0.00 0.00
EBI Equality Bancorp, Inc. of MO 28.93 129.10 14.43 129.10 NM 0.24 1.80 52.17
ESX Essex Bancorp of Norfolk VA(8) NM NM 1.99 NM NM 0.00 0.00 NM
FCB Falmouth Bancorp, Inc. of MA* 29.41 123.53 27.68 123.53 NM 0.24 1.20 35.29
FAB FirstFed America Bancorp of MA NM 136.18 15.21 136.18 NM 0.00 0.00 0.00
GAF GA Financial Corp. of PA 18.41 134.19 18.80 135.45 19.47 0.56 2.77 50.91
HBS Haywood Bancshares, Inc. of NC* 12.93 125.97 18.71 130.07 12.93 0.60 2.64 34.09
KNK Kankakee Bancorp, Inc. of IL 16.14 126.97 12.25 152.62 16.59 0.48 1.35 21.82
KYF Kentucky First Bancorp of KY 19.94 140.12 23.87 140.12 20.19 0.50 3.17 63.29
NBN Northeast Bancorp of ME* 21.38 172.87 13.04 191.63 24.25 0.21 1.29 27.63
NEP Northeast PA Fin. Corp of PA NM 116.65 21.30 116.65 NM 0.00 0.00 0.00
PDB Piedmont Bancorp, Inc. of NC 16.89 123.94 19.95 123.94 17.20 0.40 4.15 70.18
SSB Scotland Bancorp, Inc. of NC 18.00 113.78 28.11 113.78 18.00 0.20 2.22 40.00
SZB SouthFirst Bancshares of AL 28.26 116.42 11.73 119.34 30.00 0.60 3.08 NM
SRN Southern Banc Company of AL NM 109.43 18.69 110.40 NM 0.35 2.17 NM
SSM Stone Street Bancorp of NC 25.56 120.78 33.80 120.78 25.56 0.46 2.31 58.97
TSH Teche Holding Company of LA 18.01 119.84 16.58 119.84 18.18 0.50 2.55 45.87
FTF Texarkana Fst. Fin. Corp of AR 16.81 186.05 28.32 186.05 17.10 0.56 1.88 31.64
THR Three Rivers Fin. Corp. of MI 19.44 122.19 16.45 122.57 20.46 0.44 2.26 44.00
WSB Washington SB, FSB of MD 15.50 136.33 11.82 136.33 21.61 0.10 1.40 21.74
WFI Winton Financial Corp. of OH 20.55 283.45 20.34 289.44 24.91 0.25 1.52 31.25
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN 15.38 130.35 11.76 132.51 22.58 0.27 0.96 14.84
FBER 1st Bergen Bancorp of NJ 24.53 141.29 16.52 141.29 24.53 0.20 1.05 25.64
AFED AFSALA Bancorp, Inc. of NY(8) 22.19 135.46 16.97 135.46 22.19 0.28 1.42 31.46
ALBK ALBANK Fin. Corp. of Albany NY 15.32 183.53 16.46 234.68 15.50 0.84 1.60 24.56
AMFC AMB Financial Corp. of IN 17.38 117.44 16.57 117.44 NM 0.28 1.53 26.67
ASBP ASB Financial Corp. of OH 25.00 154.49 23.48 154.49 25.38 0.40 2.42 60.61
ABBK Abington Bancorp of MA* 14.80 190.72 11.99 209.75 17.45 0.20 1.08 16.00
AABC Access Anytime Bancorp of NM 8.98 151.72 12.27 151.72 9.66 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 June 5, 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 4.81 0.85 5.61 0.60 51.29 0.35
AFCB Affiliated Comm BC, Inc of MA(8) 10.16 10.12 1.09 11.03 4.80 1.04 10.55 0.41 186.48 1.24
ALBC Albion Banc Corp. of Albion NY 8.54 8.54 0.48 5.58 4.74 0.46 5.33 0.55 67.74 0.50
ABCL Alliance Bancorp, Inc. of IL 8.59 8.49 0.89 9.72 5.79 0.91 9.97 0.22 156.51 0.56
ALLB Alliance Bank MHC of PA (19.9) 10.72 10.72 0.80 7.09 1.82 0.80 7.09 1.38 41.98 1.02
AHCI Ambanc Holding Co., Inc. of NY* 11.69 11.69 0.51 4.18 3.22 0.41 3.34 0.62 122.28 1.37
ASBI Ameriana Bancorp of IN 11.64 11.42 0.96 8.54 5.87 0.82 7.28 0.47 64.16 0.41
ABCW Anchor Bancorp Wisconsin of WI 6.40 6.30 1.06 16.56 5.59 0.94 14.75 0.68 160.68 1.34
ANDB Andover Bancorp, Inc. of MA* 7.93 7.93 1.06 13.22 6.21 1.03 12.84 0.49 184.92 1.24
ASFC Astoria Financial Corp. of NY 7.96 5.63 0.81 10.29 5.05 0.74 9.46 0.54 67.50 0.85
AVND Avondale Fin. Corp. of IL 7.60 7.60 -0.78 -9.53 -8.11 -0.56 -6.82 1.14 84.08 2.31
BKCT Bancorp Connecticut of CT* 10.04 10.04 1.42 13.66 6.06 1.22 11.76 0.74 151.22 2.06
BPLS Bank Plus Corp. of CA 4.40 4.02 0.31 6.79 4.68 0.36 7.89 1.64 69.52 1.66
BNKU Bank United Corp. of TX 4.98 4.50 0.87 17.22 6.50 0.82 16.38 0.65 52.00 0.44
BWFC Bank West Fin. Corp. of MI 13.01 13.01 0.66 4.68 2.85 0.53 3.76 0.44 35.64 0.23
BANC BankAtlantic Bancorp of FL 6.16 5.16 0.89 15.06 6.00 0.39 6.51 1.17 72.73 1.12
BKUNA BankUnited Fin. Corp. of FL 4.38 3.80 0.28 6.84 2.45 0.21 5.21 0.44 32.93 0.19
BVCC Bay View Capital Corp. of CA 7.28 4.66 0.38 6.07 2.11 0.60 9.46 0.37 244.94 1.22
FSNJ Bayonne Banchsares of NJ 15.76 15.76 0.46 3.99 1.85 0.65 5.73 1.01 48.09 1.27
BFSB Bedford Bancshares, Inc. of VA 13.29 13.29 1.20 8.51 5.00 1.19 8.45 0.43 112.25 0.60
BFFC Big Foot Fin. Corp. of IL 18.28 18.28 0.52 2.95 2.27 0.45 2.55 0.09 150.75 0.28
BYFC Broadway Fin. Corp. of CA 10.13 10.13 0.48 4.65 6.27 0.33 3.23 1.22 69.07 1.01
BRKL Brookline Bncp MHC of MA(47.0) 17.16 17.16 0.78 4.56 2.39 0.78 4.56 0.62 245.94 2.30
CBES CBES Bancorp, Inc. of MO 14.23 14.23 1.04 6.29 5.67 0.86 5.22 0.53 92.07 0.54
CCFH CCF Holding Company of GA 8.09 8.09 0.14 1.36 0.82 -0.13 -1.21 0.41 123.98 0.67
CFSB CFSB Bancorp of Lansing MI 7.72 7.72 1.32 17.09 5.08 1.20 15.58 0.08 724.89 0.65
CKFB CKF Bancorp of Danville KY 21.33 21.33 1.87 8.17 7.05 1.41 6.16 0.43 48.87 0.23
CNSB CNS Bancorp, Inc. of MO 24.68 24.68 0.91 3.68 3.08 0.84 3.41 0.10 422.34 0.59
CSBF CSB Financial Group Inc of IL 24.00 22.65 0.50 2.01 2.11 0.43 1.73 0.95 39.74 0.66
CBCI Calumet Bancorp of Chicago IL 17.49 17.49 2.08 12.69 8.84 2.08 12.72 1.45 82.15 1.53
CAFI Camco Fin. Corp. of OH 9.89 9.29 1.26 13.08 6.00 0.95 9.90 0.68 43.07 0.35
CMRN Cameron Fin. Corp. of MO 20.78 20.78 1.16 5.38 4.66 1.13 5.26 0.81 95.78 0.94
CAPS Capital Savings Bancorp of MO(8) 10.13 10.13 1.10 11.90 6.70 0.94 10.19 0.38 91.74 0.43
CFNC Carolina Fincorp of NC* 22.35 22.35 0.92 4.05 3.25 1.06 4.64 0.15 226.37 0.49
CASB Cascade Financial Corp. of WA 6.98 6.98 0.77 11.70 4.73 0.73 11.05 0.42 226.15 1.08
CATB Catskill Fin. Corp. of NY* 23.42 23.42 1.33 5.36 4.95 1.32 5.30 0.29 219.08 1.49
CAVB Cavalry Bancorp of TN 28.43 28.43 1.48 7.18 2.76 1.02 4.98 0.01 NA 1.23
CNIT Cenit Bancorp of Norfolk VA 6.88 6.34 0.90 12.81 5.55 0.84 11.92 0.36 145.18 0.72
CEBK Central Co-Op. Bank of MA* 9.82 8.88 0.81 8.09 5.09 0.74 7.40 0.42 185.68 1.08
CENB Century Bancorp, Inc. of NC(8) 17.75 17.75 1.33 4.81 5.23 1.33 4.81 0.37 144.73 0.82
COFI Charter One Financial of OH 7.37 6.91 0.87 12.46 3.18 1.21 17.31 0.38 151.36 0.87
CVAL Chester Valley Bancorp of PA 8.67 8.67 1.02 11.89 4.77 0.93 10.80 0.24 390.28 1.21
CTZN CitFed Bancorp of Dayton OH(8) 6.26 5.76 0.89 14.17 4.49 0.90 14.36 0.32 137.85 0.78
CLAS Classic Bancshares, Inc. of KY 15.06 12.84 0.83 5.60 5.65 0.97 6.53 0.42 148.74 0.92
CBSA Coastal Bancorp of Houston TX 3.73 3.21 0.49 13.88 7.27 0.50 14.27 0.57 50.93 0.64
CFCP Coastal Fin. Corp. of SC 6.03 6.03 1.22 19.88 5.15 1.01 16.41 0.91 98.94 1.22
CMSB Commonwealth Bancorp Inc of PA 9.12 7.29 0.68 7.23 4.00 0.51 5.43 0.42 90.64 0.64
CMSV Commty. Svgs, MHC of FL (48.5) 10.80 10.80 0.74 6.58 2.99 0.68 6.07 0.26 134.87 0.55
CFTP Community Fed. Bancorp of MS 23.61 23.61 1.20 4.37 3.37 1.14 4.15 0.49 48.59 0.44
CFFC Community Fin. Corp. of VA 13.63 13.58 1.06 7.80 4.71 1.08 7.91 0.44 129.75 0.65
CIBI Community Inv. Bancorp of OH 10.99 10.99 0.94 8.15 4.98 0.94 8.15 0.56 89.73 0.61
COOP Cooperative Bancshares of NC 7.64 7.64 0.63 8.22 4.22 0.57 7.46 0.16 167.34 0.35
CRZY Crazy Woman Creek Bncorp of WY 23.58 23.58 1.27 5.13 4.34 1.29 5.20 0.09 511.11 0.94
DNFC D&N Financial Corp. of MI 5.44 5.40 0.87 15.78 6.21 0.77 14.04 0.56 101.76 0.77
DCBI Delphos Citizens Bancorp of OH 24.95 24.95 1.60 5.91 4.44 1.60 5.91 0.56 17.75 0.12
DIME Dime Community Bancorp of NY* 12.01 10.44 0.83 6.19 3.24 0.79 5.86 0.48 159.03 1.36
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 20.79 127.41 17.95 127.41 22.02 0.32 1.73 35.96
AFCB Affiliated Comm BC, Inc of MA(8) 20.84 217.59 22.12 218.59 21.78 0.60 1.56 32.61
ALBC Albion Banc Corp. of Albion NY 21.11 114.73 9.80 114.73 22.09 0.12 1.26 26.67
ABCL Alliance Bancorp, Inc. of IL 17.26 162.52 13.96 164.41 16.82 0.44 1.64 28.39
ALLB Alliance Bank MHC of PA (19.9) NM NM 40.80 NM NM 0.36 1.06 58.06
AHCI Ambanc Holding Co., Inc. of NY* NM 130.55 15.26 130.55 NM 0.24 1.29 40.00
ASBI Ameriana Bancorp of IN 17.03 142.09 16.53 144.79 19.95 0.64 3.24 55.17
ABCW Anchor Bancorp Wisconsin of WI 17.88 286.69 18.35 291.39 20.07 0.36 0.88 15.72
ANDB Andover Bancorp, Inc. of MA* 16.10 201.12 15.95 201.12 16.57 0.72 2.11 33.96
ASFC Astoria Financial Corp. of NY 19.82 165.18 13.14 233.39 21.55 0.80 1.47 29.20
AVND Avondale Fin. Corp. of IL NM 125.31 9.52 125.31 NM 0.00 0.00 NM
BKCT Bancorp Connecticut of CT* 16.50 213.24 21.40 213.24 19.17 0.54 2.68 44.26
BPLS Bank Plus Corp. of CA 21.37 138.45 6.09 151.26 18.40 0.00 0.00 0.00
BNKU Bank United Corp. of TX 15.39 244.94 12.20 271.04 16.18 0.64 1.26 19.45
BWFC Bank West Fin. Corp. of MI NM 161.03 20.94 161.03 NM 0.24 1.67 58.54
BANC BankAtlantic Bancorp of FL 16.67 205.17 12.63 245.01 NM 0.10 0.74 12.35
BKUNA BankUnited Fin. Corp. of FL NM 181.65 7.96 209.41 NM 0.00 0.00 0.00
BVCC Bay View Capital Corp. of CA NM 167.97 12.22 262.41 NM 0.40 1.24 58.82
FSNJ Bayonne Banchsares of NJ NM 152.87 24.08 152.87 NM 0.17 1.05 56.67
BFSB Bedford Bancshares, Inc. of VA 20.00 163.75 21.76 163.75 20.14 0.56 1.93 38.62
BFFC Big Foot Fin. Corp. of IL NM 127.17 23.25 127.17 NM 0.00 0.00 0.00
BYFC Broadway Fin. Corp. of CA 15.94 72.94 7.39 72.94 22.92 0.20 1.82 28.99
BRKL Brookline Bncp MHC of MA(47.0) NM 190.54 32.70 190.54 NM 0.00 0.00 0.00
CBES CBES Bancorp, Inc. of MO 17.63 117.02 16.66 117.02 21.27 0.40 1.94 34.19
CCFH CCF Holding Company of GA NM 170.41 13.79 170.41 NM 0.64 2.91 NM
CFSB CFSB Bancorp of Lansing MI 19.67 336.48 25.99 336.48 21.57 0.47 1.76 34.56
CKFB CKF Bancorp of Danville KY 14.18 121.72 25.96 121.72 18.81 0.50 2.63 37.31
CNSB CNS Bancorp, Inc. of MO NM 119.75 29.55 119.75 NM 0.24 1.37 44.44
CSBF CSB Financial Group Inc of IL NM 99.13 23.80 105.04 NM 0.00 0.00 0.00
CBCI Calumet Bancorp of Chicago IL 11.31 134.62 23.54 134.62 11.27 0.00 0.00 0.00
CAFI Camco Fin. Corp. of OH 16.67 188.86 18.69 201.23 22.01 0.58 1.97 32.77
CMRN Cameron Fin. Corp. of MO 21.45 113.79 23.65 113.79 21.91 0.28 1.37 29.47
CAPS Capital Savings Bancorp of MO(8) 14.93 167.07 16.92 167.07 17.44 0.24 1.16 17.27
CFNC Carolina Fincorp of NC* NM 121.96 27.25 121.96 26.89 0.24 1.42 43.64
CASB Cascade Financial Corp. of WA 21.15 215.57 15.05 215.57 22.38 0.00 0.00 0.00
CATB Catskill Fin. Corp. of NY* 20.21 111.84 26.20 111.84 20.45 0.32 1.84 37.21
CAVB Cavalry Bancorp of TN NM 170.07 48.35 170.07 NM 0.00 0.00 0.00
CNIT Cenit Bancorp of Norfolk VA 18.02 229.06 15.76 248.40 19.38 0.40 1.72 31.01
CEBK Central Co-Op. Bank of MA* 19.63 151.93 14.92 168.05 21.45 0.32 1.15 22.54
CENB Century Bancorp, Inc. of NC(8) 19.10 138.89 24.66 138.89 19.10 0.68 3.36 64.15
COFI Charter One Financial of OH NM 317.25 23.38 338.42 22.61 0.56 1.58 49.56
CVAL Chester Valley Bancorp of PA 20.97 233.72 20.26 233.72 23.10 0.44 1.38 28.95
CTZN CitFed Bancorp of Dayton OH(8) 22.29 291.59 18.24 316.52 21.99 0.36 0.73 16.29
CLAS Classic Bancshares, Inc. of KY 17.71 96.75 14.57 113.41 15.18 0.28 1.88 33.33
CBSA Coastal Bancorp of Houston TX 13.76 177.40 6.61 205.81 13.38 0.48 1.23 16.96
CFCP Coastal Fin. Corp. of SC 19.42 NM 21.42 NM 23.53 0.27 1.35 26.21
CMSB Commonwealth Bancorp Inc of PA 25.00 178.97 16.33 223.88 NM 0.32 1.33 33.33
CMSV Commty. Svgs, MHC of FL (48.5) NM 214.15 23.13 214.15 NM 0.90 2.61 NM
CFTP Community Fed. Bancorp of MS 29.66 132.08 31.18 132.08 NM 0.32 1.83 54.24
CFFC Community Fin. Corp. of VA 21.23 158.81 21.65 159.47 20.95 0.28 1.81 38.36
CIBI Community Inv. Bancorp of OH 20.10 163.22 17.93 163.22 20.10 0.32 1.56 31.37
COOP Cooperative Bancshares of NC 23.68 184.43 14.08 184.43 26.09 0.00 0.00 0.00
CRZY Crazy Woman Creek Bncorp of WY 23.05 116.55 27.48 116.55 22.76 0.40 2.25 51.95
DNFC D&N Financial Corp. of MI 16.10 235.85 12.84 237.99 18.10 0.20 0.76 12.27
DCBI Delphos Citizens Bancorp of OH 22.53 138.89 34.66 138.89 22.53 0.00 0.00 0.00
DIME Dime Community Bancorp of NY* NM 190.54 22.87 219.03 NM 0.36 1.24 38.30
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 June 5, 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)
- ---------------------------------------
DIBK Dime Financial Corp. of CT(8)* 8.11 7.92 1.70 21.06 8.58 1.69 20.92 0.29 396.36 3.17
ESBF ESB Financial Corp of PA 7.20 6.42 0.70 9.13 5.63 0.69 9.04 0.44 116.49 1.37
EGLB Eagle BancGroup of IL 11.47 11.47 0.34 2.87 2.53 0.17 1.43 1.27 41.32 0.77
EBSI Eagle Bancshares of Tucker GA 7.83 7.83 0.66 8.05 4.06 0.67 8.14 1.18 56.90 0.92
ETFS East Texas Fin. Serv. of TX 17.43 17.43 0.60 3.31 2.86 0.54 3.01 0.41 47.58 0.38
ESBK Elmira Svgs Bank (The) of NY* 6.21 6.21 0.44 7.04 4.75 0.47 7.45 0.68 97.63 0.85
EMLD Emerald Financial Corp. of OH 8.27 8.15 1.09 13.88 4.83 1.00 12.80 0.38 73.95 0.37
EFBC Empire Federal Bancorp of MT 36.97 36.97 1.45 4.91 3.67 1.45 4.91 0.01 NA 0.43
EFBI Enterprise Fed. Bancorp of OH 10.75 10.74 0.81 6.91 3.54 0.74 6.28 0.01 NA 0.29
EQSB Equitable FSB of Wheaton MD 5.18 5.18 0.72 14.03 6.10 0.70 13.57 0.39 NA NA
FCBF FCB Fin. Corp. of Neenah WI 14.09 14.09 1.15 7.62 3.91 0.84 5.61 0.26 269.82 0.89
FFDF FFD Financial Corp. of OH 22.27 22.27 1.73 7.25 4.64 0.78 3.26 0.08 329.27 0.40
FFLC FFLC Bancorp of Leesburg FL 12.71 12.71 0.98 7.28 5.02 0.92 6.84 0.31 147.07 0.56
FFWC FFW Corporation of Wabash IN 9.58 8.79 1.01 10.48 7.47 0.98 10.15 0.33 113.70 0.57
FFYF FFY Financial Corp. of OH 13.10 13.10 1.28 9.36 5.87 1.26 9.21 0.53 81.15 0.60
FMCO FMS Financial Corp. of NJ 5.95 5.89 0.90 14.36 5.00 0.90 14.29 0.70 68.15 1.05
FFHH FSF Financial Corp. of MN 10.40 10.40 0.83 7.50 5.79 0.80 7.23 0.18 131.50 0.34
FOBC Fed One Bancorp of Wheeling WV(8) 11.24 10.79 0.86 7.66 3.56 0.85 7.60 0.29 141.57 0.90
FBCI Fidelity Bancorp of Chicago IL 10.78 10.77 0.21 2.04 1.60 0.62 5.95 0.29 33.82 0.12
FSBI Fidelity Bancorp, Inc. of PA 6.84 6.84 0.75 10.93 5.92 0.74 10.78 0.08 658.57 1.05
FFFL Fidelity Bcsh MHC of FL (47.7) 6.70 6.50 0.66 8.52 3.72 0.57 7.32 0.32 75.42 0.36
FFED Fidelity Fed. Bancorp of IN 6.78 6.78 -0.34 -5.64 -3.39 -0.26 -4.29 0.38 613.16 2.77
FFOH Fidelity Financial of OH 12.05 10.67 0.92 7.30 5.01 0.89 7.05 0.18 174.24 0.39
FIBC Financial Bancorp, Inc. of NY 9.04 9.00 0.94 10.24 5.89 0.92 9.99 2.19 23.74 0.93
FBSI First Bancshares, Inc. of MO 13.42 12.86 1.11 7.98 6.51 1.06 7.60 0.87 33.59 0.36
FBBC First Bell Bancorp of PA 11.22 11.22 1.09 10.37 5.84 1.06 10.10 0.07 156.05 0.13
SKBO First Carnegie MHC of PA(45.0) 17.20 17.20 0.64 4.58 2.10 0.71 5.13 0.78 47.72 0.85
FSTC First Citizens Corp of GA 10.12 7.98 1.96 20.63 6.94 1.75 18.43 1.12 99.21 1.46
FCBK First Coastal Bankshares of VA(8) 7.14 7.14 0.69 9.82 4.74 0.53 7.51 1.34 51.28 0.93
FCME First Coastal Corp. of ME* 10.06 10.06 0.85 8.88 6.71 0.74 7.75 0.50 358.51 2.48
FFBA First Colorado Bancorp of CO(8) 13.46 13.19 1.31 9.83 4.12 1.24 9.33 0.18 176.16 0.41
FDEF First Defiance Fin.Corp. of OH 17.64 17.64 0.95 4.82 4.42 0.90 4.60 0.31 158.28 0.62
FESX First Essex Bancorp of MA* 7.04 6.21 0.84 11.58 6.01 0.77 10.56 0.54 152.35 1.49
FFSX First FSB MHC Sxld of IA(46.1) 7.21 5.70 0.68 8.30 3.18 0.69 8.38 0.36 122.22 0.61
FFES First Fed of E. Hartford CT 6.92 6.92 0.58 8.72 5.73 0.64 9.68 0.31 85.02 1.32
BDJI First Fed. Bancorp. of MN 10.89 10.89 0.68 6.36 4.00 0.68 6.36 0.24 161.48 0.81
FFBH First Fed. Bancshares of AR 14.76 14.76 1.00 6.61 4.05 0.94 6.25 0.85 21.71 0.24
FTFC First Fed. Capital Corp. of WI 7.17 6.80 1.18 17.50 5.69 0.90 13.28 0.21 229.95 0.61
FFKY First Fed. Fin. Corp. of KY 13.21 12.51 1.63 12.01 5.74 1.59 11.69 0.47 94.14 0.52
FFBZ First Federal Bancorp of OH 7.62 7.61 0.90 11.79 4.76 0.89 11.69 0.46 219.63 1.18
FFCH First Fin. Holdings Inc. of SC 6.36 6.36 0.88 14.12 4.87 0.85 13.62 1.26 51.68 0.80
FFHS First Franklin Corp. of OH 9.24 9.20 0.82 9.03 6.13 0.71 7.82 0.49 92.09 0.68
FGHC First Georgia Hold. Corp of GA 8.09 7.55 1.13 13.67 4.30 1.13 13.67 1.64 38.60 0.72
FSPG First Home Bancorp of NJ(8) 7.00 6.91 0.88 12.87 5.49 0.86 12.64 0.80 82.62 1.30
FFSL First Independence Corp. of KS 9.28 9.28 0.66 6.57 5.64 0.66 6.57 0.51 102.98 0.76
FISB First Indiana Corp. of IN 9.26 9.16 1.15 12.13 5.51 0.87 9.14 1.38 103.15 1.70
FKFS First Keystone Fin. Corp of PA 6.67 6.67 0.77 11.25 6.03 0.68 9.96 1.34 34.27 0.89
FLKY First Lancaster Bncshrs of KY 26.64 26.64 1.03 3.44 3.29 1.03 3.44 1.70 18.91 0.36
FLFC First Liberty Fin. Corp. of GA 7.59 6.90 0.76 10.21 3.43 0.78 10.59 0.82 114.75 1.38
CASH First Midwest Fin., Inc. of OH 10.39 9.24 0.59 5.41 3.78 0.52 4.73 1.11 78.58 1.40
FMBD First Mutual Bancorp Inc of IL 14.15 10.96 0.32 2.39 2.10 0.25 1.87 0.43 85.81 0.47
FMSB First Mutual SB of Bellevue WA* 6.79 6.79 1.03 15.35 6.18 1.01 15.06 0.15 714.97 1.23
FNGB First Northern Cap. Corp of WI 11.10 11.10 0.96 8.56 5.19 0.90 8.07 0.12 405.46 0.54
FFPB First Palm Beach Bancorp of FL 6.37 6.23 0.56 8.55 4.24 0.43 6.57 0.57 62.53 0.61
FWWB First Savings Bancorp of WA 13.38 12.39 1.21 8.51 5.04 1.14 8.04 0.25 263.53 0.97
FSFF First SecurityFed Fin of IL 29.09 28.99 0.66 4.22 1.68 1.29 8.28 0.37 158.47 0.96
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)
- ---------------------------------------
DIBK Dime Financial Corp. of CT(8)* 11.66 220.43 17.88 225.90 11.74 0.48 1.39 16.16
ESBF ESB Financial Corp of PA 17.77 153.25 11.03 171.69 17.95 0.33 1.82 32.35
EGLB Eagle BancGroup of IL NM 112.47 12.90 112.47 NM 0.00 0.00 0.00
EBSI Eagle Bancshares of Tucker GA 24.61 184.61 14.46 184.61 24.36 0.64 2.71 66.67
ETFS East Texas Fin. Serv. of TX NM 114.96 20.04 114.96 NM 0.20 1.27 44.44
ESBK Elmira Svgs Bank (The) of NY* 21.04 149.01 9.26 149.01 19.90 0.64 2.19 46.04
EMLD Emerald Financial Corp. of OH 20.70 267.14 22.08 270.96 22.46 0.14 1.06 21.88
EFBC Empire Federal Bancorp of MT 27.26 106.19 39.26 106.19 27.26 0.32 1.92 52.46
EFBI Enterprise Fed. Bancorp of OH 28.28 191.13 20.55 191.26 NM 1.00 3.57 NM
EQSB Equitable FSB of Wheaton MD 16.40 214.04 11.09 214.04 16.94 0.00 0.00 0.00
FCBF FCB Fin. Corp. of Neenah WI 25.60 168.69 23.78 168.69 NM 0.88 2.75 70.40
FFDF FFD Financial Corp. of OH 21.56 152.30 33.92 152.30 NM 0.30 1.28 27.52
FFLC FFLC Bancorp of Leesburg FL 19.93 145.24 18.46 145.24 21.19 0.36 1.79 35.64
FFWC FFW Corporation of Wabash IN 13.39 129.47 12.41 141.08 13.82 0.42 2.47 33.07
FFYF FFY Financial Corp. of OH 17.04 157.93 20.68 157.93 17.31 0.80 2.43 41.45
FMCO FMS Financial Corp. of NJ 20.00 271.08 16.12 273.72 20.09 0.36 0.80 16.00
FFHH FSF Financial Corp. of MN 17.27 131.12 13.63 131.12 17.92 0.50 2.63 45.45
FOBC Fed One Bancorp of Wheeling WV(8) 28.10 210.02 23.60 218.77 28.32 0.62 1.71 48.06
FBCI Fidelity Bancorp of Chicago IL NM 124.96 13.48 125.16 21.42 0.40 1.73 NM
FSBI Fidelity Bancorp, Inc. of PA 16.90 171.31 11.71 171.31 17.14 0.36 1.50 25.35
FFFL Fidelity Bcsh MHC of FL (47.7) 26.87 220.98 14.81 227.81 NM 0.90 3.13 NM
FFED Fidelity Fed. Bancorp of IN NM 172.43 11.69 172.43 NM 0.40 5.42 NM
FFOH Fidelity Financial of OH 19.98 149.31 17.99 168.57 20.69 0.32 1.84 36.78
FIBC Financial Bancorp, Inc. of NY 16.98 167.38 15.12 168.09 17.41 0.50 1.82 30.86
FBSI First Bancshares, Inc. of MO 15.36 118.06 15.84 123.19 16.14 0.12 0.94 14.46
FBBC First Bell Bancorp of PA 17.12 172.27 19.33 172.27 17.58 0.40 2.03 34.78
SKBO First Carnegie MHC of PA(45.0) NM 181.56 31.22 181.56 NM 0.30 1.54 73.17
FSTC First Citizens Corp of GA 14.42 251.22 25.42 318.60 16.15 0.32 1.03 14.88
FCBK First Coastal Bankshares of VA(8) 21.11 200.22 14.29 200.22 27.60 0.00 0.00 0.00
FCME First Coastal Corp. of ME* 14.89 126.13 12.68 126.13 17.07 0.00 0.00 0.00
FFBA First Colorado Bancorp of CO(8) 24.26 230.14 30.97 234.86 25.56 0.52 1.82 44.07
FDEF First Defiance Fin.Corp. of OH 22.64 119.14 21.02 119.14 23.71 0.36 2.41 54.55
FESX First Essex Bancorp of MA* 16.64 187.18 13.18 212.29 18.25 0.56 2.47 41.18
FFSX First FSB MHC Sxld of IA(46.1) NM 251.55 18.13 317.94 NM 0.48 1.32 41.38
FFES First Fed of E. Hartford CT 17.46 144.50 9.99 144.50 15.73 0.68 1.86 32.54
BDJI First Fed. Bancorp. of MN 25.00 155.87 16.98 155.87 25.00 0.00 0.00 0.00
FFBH First Fed. Bancshares of AR 24.67 159.19 23.50 159.19 26.08 0.28 1.02 25.23
FTFC First Fed. Capital Corp. of WI 17.59 285.95 20.50 301.46 23.18 0.56 1.60 28.14
FFKY First Fed. Fin. Corp. of KY 17.43 203.53 26.89 214.92 17.91 0.56 2.11 36.84
FFBZ First Federal Bancorp of OH 21.02 238.09 18.14 238.32 21.20 0.28 1.15 24.14
FFCH First Fin. Holdings Inc. of SC 20.54 264.37 16.82 264.37 21.30 0.42 1.83 37.50
FFHS First Franklin Corp. of OH 16.31 142.63 13.18 143.35 18.82 0.27 1.58 25.71
FGHC First Georgia Hold. Corp of GA 23.25 298.42 24.15 320.05 23.25 0.40 3.02 70.18
FSPG First Home Bancorp of NJ(8) 18.20 220.78 15.45 223.64 18.53 0.40 1.28 23.39
FFSL First Independence Corp. of KS 17.72 115.80 10.75 115.80 17.72 0.00 0.00 0.00
FISB First Indiana Corp. of IN 18.13 209.86 19.43 212.11 24.07 0.48 1.86 33.80
FKFS First Keystone Fin. Corp of PA 16.59 176.22 11.75 176.22 18.75 0.20 1.07 17.70
FLKY First Lancaster Bncshrs of KY NM 103.96 27.69 103.96 NM 0.50 3.23 NM
FLFC First Liberty Fin. Corp. of GA 29.12 286.67 21.76 315.46 28.09 0.30 1.26 36.59
CASH First Midwest Fin., Inc. of OH 26.42 146.04 15.17 164.19 NM 0.48 2.06 54.55
FMBD First Mutual Bancorp Inc of IL NM 112.72 15.95 145.58 NM 0.32 1.82 NM
FMSB First Mutual SB of Bellevue WA* 16.19 231.29 15.70 231.29 16.50 0.20 1.18 19.05
FNGB First Northern Cap. Corp of WI 19.29 160.14 17.78 160.14 20.45 0.36 2.67 51.43
FFPB First Palm Beach Bancorp of FL 23.59 191.28 12.19 195.63 NM 0.70 1.60 37.63
FWWB First Savings Bancorp of WA 19.84 167.00 22.34 180.25 21.01 0.36 1.44 28.57
FSFF First SecurityFed Fin of IL NM 116.39 33.86 116.79 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 June 5, 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)
- ---------------------------------------
SHEN First Shenango Bancorp of PA(8) 11.98 11.98 1.09 9.41 5.09 1.11 9.59 0.97 83.39 1.27
FSLA First Source Bancorp of NJ 20.55 20.55 1.09 5.31 4.10 1.09 5.31 0.47 115.69 1.04
SOPN First Svgs Bancorp of NC 23.03 23.03 1.78 7.65 6.02 1.78 7.65 0.16 125.31 0.30
FBNW FirstBank Corp of Clarkston WA 16.36 16.36 1.03 7.72 4.14 0.62 4.67 0.73 83.64 0.76
FFDB FirstFed Bancorp, Inc. of AL 9.69 8.90 0.96 9.89 5.92 0.96 9.89 1.42 45.57 0.95
FSPT FirstSpartan Fin. Corp. of SC 26.29 26.29 1.33 6.94 3.42 1.32 6.89 0.35 115.67 0.49
FLAG Flag Financial Corp of GA 8.89 8.89 0.87 9.46 2.38 0.62 6.67 0.99 91.47 1.30
FLGS Flagstar Bancorp, Inc of MI 5.21 5.04 1.30 21.55 7.64 1.30 21.55 2.32 11.78 0.31
FFIC Flushing Fin. Corp. of NY* 12.72 12.23 0.92 6.57 4.26 0.93 6.63 0.31 199.94 1.04
FBHC Fort Bend Holding Corp. of TX(8) 6.77 6.35 0.78 12.28 5.94 0.57 9.06 0.47 114.18 1.02
FTSB Fort Thomas Fin. Corp. of KY 15.77 15.77 1.23 7.71 5.47 1.23 7.71 2.22 19.86 0.49
FKKY Frankfort First Bancorp of KY 16.95 16.95 0.25 1.31 1.23 0.80 4.26 0.12 63.29 0.08
FTNB Fulton Bancorp, Inc. of MO 23.37 23.37 1.22 5.01 3.80 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 5.10 0.91 6.67 0.37 86.67 0.54
GSLA GS Financial Corp. of LA 41.63 41.63 1.44 3.79 3.22 1.29 3.39 0.13 264.81 0.77
GOSB GSB Financial Corp. of NY* 28.14 28.14 0.73 3.54 2.28 0.69 3.36 0.10 147.83 0.24
GBNK Gaston Fed Bncp MHC of NC(47.0 22.48 22.48 1.13 5.02 2.73 1.13 5.02 0.32 134.01 0.92
GFCO Glenway Financial Corp. of OH 9.57 9.49 0.86 9.12 4.63 0.86 9.04 0.19 184.71 0.41
GTPS Great American Bancorp of IL 18.33 18.33 0.66 3.24 2.65 0.66 3.24 0.11 346.45 0.48
PEDE Great Pee Dee Bancorp of SC 37.86 37.86 1.57 4.15 3.61 1.57 4.15 0.73 65.48 0.59
GSBC Great Southern Bancorp of MO 8.20 8.14 1.89 21.95 6.92 1.69 19.67 1.51 129.74 2.39
GSFC Green Street Fin. Corp. of NC 35.78 35.78 1.60 4.49 4.03 1.60 4.49 0.18 78.95 0.19
GFED Guaranty Fed Bancshares of MO 28.34 28.34 1.12 5.49 3.01 1.09 5.34 0.59 152.53 1.14
HCBB HCB Bancshares of Camden AR 18.65 17.99 0.30 2.05 1.45 0.30 2.05 0.23 316.88 1.42
HEMT HF Bancorp of Hemet CA 7.86 6.67 -0.04 -0.54 -0.42 0.13 1.61 0.95 59.24 1.00
HFFC HF Financial Corp. of SD 9.72 9.72 1.09 11.50 5.94 1.01 10.69 0.49 196.91 1.26
HFNC HFNC Financial Corp. of NC(8) 17.24 17.24 1.34 7.36 5.69 0.92 5.05 0.73 98.43 0.89
HMNF HMN Financial, Inc. of MN 11.60 10.79 0.93 6.97 5.17 0.66 4.95 0.12 327.35 0.61
HALL Hallmark Capital Corp. of WI 7.68 7.68 0.67 9.13 6.33 0.64 8.65 0.27 197.24 0.78
HRBF Harbor Federal Bancorp of MD 12.69 12.69 0.75 5.86 4.60 0.72 5.62 0.42 50.26 0.33
HARB Harbor Florida Bancshrs of FL 19.81 19.60 1.25 11.33 3.94 1.20 10.84 0.47 198.97 1.33
HFSA Hardin Bancorp of Hardin MO 11.13 11.13 0.77 6.54 5.47 0.66 5.61 0.19 110.22 0.40
HARL Harleysville SB of PA 6.67 6.67 1.01 15.23 6.42 1.01 15.23 NA NA 0.79
HFGI Harrington Fin. Group of IN 4.42 4.42 -0.02 -0.40 -0.26 0.04 0.94 0.16 23.48 0.16
HARS Harris Fin. MHC of PA (24.3) 8.12 7.30 0.88 10.93 2.26 0.72 8.95 0.66 60.87 0.99
HFFB Harrodsburg 1st Fin Bcrp of KY 26.46 26.46 1.36 5.08 4.68 1.36 5.08 0.44 79.96 0.45
HHFC Harvest Home Fin. Corp. of OH 11.12 11.12 0.77 6.53 5.07 0.67 5.67 0.23 56.81 0.27
HAVN Haven Bancorp of Woodhaven NY 5.65 5.64 0.53 9.11 4.17 0.53 9.03 0.57 112.56 1.08
HTHR Hawthorne Fin. Corp. of CA 4.25 4.25 0.97 21.97 16.29 1.14 25.72 6.04 22.28 1.46
HMLK Hemlock Fed. Fin. Corp. of IL 16.20 16.20 0.99 5.53 4.62 0.99 5.53 0.23 175.34 0.94
HBSC Heritage Bancorp, Inc of SC 28.79 28.79 1.16 4.02 3.80 1.16 4.02 NA NA 0.38
HFWA Heritage Financial Corp of WA 28.80 28.80 1.11 5.92 2.49 0.57 3.04 0.12 761.93 1.28
HCBC High Country Bancorp of CO 19.56 19.56 0.84 5.87 3.53 0.84 5.87 0.45 167.06 0.94
HBNK Highland Bancorp of CA 7.84 7.84 1.30 17.06 6.81 1.13 14.83 1.95 84.08 2.06
HIFS Hingham Inst. for Sav. of MA* 9.48 9.48 1.25 13.13 6.00 1.25 13.13 0.42 166.84 0.89
HBEI Home Bancorp of Elgin IL(8) 25.92 25.92 0.70 2.57 2.25 0.70 2.57 0.32 93.09 0.36
HBFW Home Bancorp of Fort Wayne IN 12.03 12.03 0.86 6.72 3.92 0.84 6.56 0.08 463.00 0.45
HCFC Home City Fin. Corp. of OH 18.58 18.58 1.29 6.57 6.92 1.29 6.57 0.65 90.76 0.66
HOMF Home Fed Bancorp of Seymour IN 9.20 8.95 1.45 16.58 6.50 1.17 13.44 0.53 107.55 0.68
HWEN Home Financial Bancorp of IN 17.99 17.99 0.94 5.32 4.60 0.74 4.18 1.32 53.55 0.86
HLFC Home Loan Financial Corp of OH 38.94 38.94 1.30 5.70 2.39 1.30 5.70 0.44 56.90 0.36
HPBC Home Port Bancorp, Inc. of MA* 9.78 9.78 1.47 14.04 6.09 1.63 15.59 0.29 430.57 1.49
HFBC HopFed Bancorp of KY 25.98 25.98 1.12 10.32 3.19 1.12 10.32 0.15 70.97 0.23
HZFS Horizon Fin'l. Services of IA 9.11 9.11 0.91 9.24 5.33 0.70 7.08 0.92 45.20 0.69
HRZB Horizon Financial Corp. of WA* 15.33 15.33 1.55 10.00 6.29 1.54 9.91 0.01 NA 0.83
IBSF IBS Financial Corp. of NJ(8) 17.36 17.36 0.82 4.70 3.05 0.82 4.70 0.09 156.87 0.47
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)
- ---------------------------------------
SHEN First Shenango Bancorp of PA(8) 19.64 176.74 21.17 176.74 19.28 0.60 1.45 28.57
FSLA First Source Bancorp of NJ 24.39 129.53 26.62 129.53 24.39 0.12 1.20 29.27
SOPN First Svgs Bancorp of NC 16.61 124.93 28.77 124.93 16.61 1.00 4.30 71.43
FBNW FirstBank Corp of Clarkston WA 24.13 137.14 22.43 137.14 NM 0.32 1.54 37.21
FFDB FirstFed Bancorp, Inc. of AL 16.89 166.67 16.15 181.55 16.89 0.50 2.00 33.78
FSPT FirstSpartan Fin. Corp. of SC 29.28 148.98 39.17 148.98 29.47 0.60 1.35 39.47
FLAG Flag Financial Corp of GA NM NM 34.12 NM NM 0.23 1.24 52.27
FLGS Flagstar Bancorp, Inc of MI 13.08 245.04 12.76 253.07 13.08 0.28 1.17 15.30
FFIC Flushing Fin. Corp. of NY* 23.45 151.26 19.23 157.27 23.25 0.32 1.21 28.32
FBHC Fort Bend Holding Corp. of TX(8) 16.84 193.25 13.09 206.16 22.84 0.40 1.68 28.37
FTSB Fort Thomas Fin. Corp. of KY 18.29 137.99 21.76 137.99 18.29 0.25 1.67 30.49
FKKY Frankfort First Bancorp of KY NM 116.40 19.74 116.40 25.00 0.80 4.92 NM
FTNB Fulton Bancorp, Inc. of MO 26.33 131.14 30.64 131.14 NM 0.24 1.22 32.00
GUPB GFSB Bancorp, Inc of Gallup NM 19.62 127.68 15.75 127.68 19.62 0.27 1.74 34.18
GSLA GS Financial Corp. of LA NM 108.08 44.99 108.08 NM 0.28 1.61 50.00
GOSB GSB Financial Corp. of NY* NM 115.12 32.40 115.12 NM 0.00 0.00 0.00
GBNK Gaston Fed Bncp MHC of NC(47.0 NM 184.00 41.37 184.00 NM 0.00 0.00 0.00
GFCO Glenway Financial Corp. of OH 21.62 190.48 18.23 192.15 21.82 0.44 1.83 39.64
GTPS Great American Bancorp of IL NM 129.62 23.76 129.62 NM 0.44 2.01 NM
PEDE Great Pee Dee Bancorp of SC 27.68 114.73 43.44 114.73 27.68 0.30 1.94 53.57
GSBC Great Southern Bancorp of MO 14.45 300.84 24.65 303.03 16.13 0.44 1.76 25.43
GSFC Green Street Fin. Corp. of NC 24.82 110.60 39.57 110.60 24.82 0.44 2.69 66.67
GFED Guaranty Fed Bancshares of MO NM 115.43 32.71 115.43 NM 0.60 4.64 NM
HCBB HCB Bancshares of Camden AR NM 104.71 19.53 108.54 NM 0.20 1.32 NM
HEMT HF Bancorp of Hemet CA NM 126.22 9.92 148.76 NM 0.00 0.00 NM
HFFC HF Financial Corp. of SD 16.84 188.49 18.33 188.49 18.13 0.28 1.18 19.86
HFNC HFNC Financial Corp. of NC(8) 17.59 125.36 21.61 125.36 25.65 0.32 2.60 45.71
HMNF HMN Financial, Inc. of MN 19.35 131.77 15.29 141.62 27.27 0.16 0.89 17.20
HALL Hallmark Capital Corp. of WI 15.79 136.12 10.46 136.12 16.67 0.00 0.00 0.00
HRBF Harbor Federal Bancorp of MD 21.72 124.13 15.75 124.13 22.63 0.52 2.42 52.53
HARB Harbor Florida Bancshrs of FL 25.40 144.03 28.54 145.61 26.53 0.26 2.18 55.32
HFSA Hardin Bancorp of Hardin MO 18.28 118.46 13.18 118.46 21.30 0.52 2.68 49.06
HARL Harleysville SB of PA 15.57 220.87 14.73 220.87 15.57 0.44 1.36 21.15
HFGI Harrington Fin. Group of IN NM 153.99 6.81 153.99 NM 0.12 1.05 NM
HARS Harris Fin. MHC of PA (24.3) NM NM 36.51 NM NM 0.22 0.90 40.00
HFFB Harrodsburg 1st Fin Bcrp of KY 21.38 109.87 29.07 109.87 21.38 0.40 2.46 52.63
HHFC Harvest Home Fin. Corp. of OH 19.74 129.09 14.35 129.09 22.73 0.44 2.93 57.89
HAVN Haven Bancorp of Woodhaven NY 24.00 208.21 11.77 208.70 24.22 0.30 1.12 26.79
HTHR Hawthorne Fin. Corp. of CA 6.14 122.60 5.21 122.60 5.24 0.00 0.00 0.00
HMLK Hemlock Fed. Fin. Corp. of IL 21.62 118.81 19.24 118.81 21.62 0.28 1.52 32.94
HBSC Heritage Bancorp, Inc of SC 26.28 105.62 30.40 105.62 26.28 0.00 0.00 0.00
HFWA Heritage Financial Corp of WA NM 156.14 44.97 156.14 NM 0.14 0.94 37.84
HCBC High Country Bancorp of CO 28.30 109.97 21.51 109.97 28.30 0.30 2.00 56.60
HBNK Highland Bancorp of CA 14.69 227.88 17.87 227.88 16.90 1.00 2.34 34.36
HIFS Hingham Inst. for Sav. of MA* 16.67 207.84 19.70 207.84 16.67 0.52 1.49 24.76
HBEI Home Bancorp of Elgin IL(8) NM 114.70 29.73 114.70 NM 0.40 2.50 NM
HBFW Home Bancorp of Fort Wayne IN 25.50 176.82 21.27 176.82 26.13 0.20 0.63 16.00
HCFC Home City Fin. Corp. of OH 14.46 94.07 17.48 94.07 14.46 0.36 2.44 35.29
HOMF Home Fed Bancorp of Seymour IN 15.38 237.15 21.81 243.70 18.99 0.40 1.33 20.51
HWEN Home Financial Bancorp of IN 21.74 113.70 20.45 113.70 27.67 0.10 1.10 23.81
HLFC Home Loan Financial Corp of OH NM 112.16 43.67 112.16 NM 0.00 0.00 0.00
HPBC Home Port Bancorp, Inc. of MA* 16.41 223.29 21.83 223.29 14.78 0.80 2.99 49.08
HFBC HopFed Bancorp of KY NM 142.92 37.13 142.92 NM 0.00 0.00 0.00
HZFS Horizon Fin'l. Services of IA 18.76 175.83 16.02 175.83 24.46 0.18 1.07 20.00
HRZB Horizon Financial Corp. of WA* 15.91 155.97 23.92 155.97 16.06 0.44 2.51 40.00
IBSF IBS Financial Corp. of NJ(8) NM 151.64 26.32 151.64 NM 0.40 2.21 72.73
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 June 5, 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)
- ---------------------------------------
ITLA ITLA Capital Corp of CA* 10.18 10.14 1.43 13.51 7.68 1.43 13.51 1.31 102.95 1.63
ICBC Independence Comm Bnk Cp of NY 21.70 20.32 0.64 2.95 2.20 0.85 3.90 0.70 126.32 1.24
IFSB Independence FSB of DC 7.25 6.45 0.54 8.04 5.97 0.22 3.32 1.41 16.50 0.40
INBI Industrial Bancorp of OH 16.48 16.48 1.48 8.53 5.35 1.48 8.53 0.25 188.24 0.54
IWBK Interwest Bancorp of WA 6.76 6.66 1.04 15.60 5.11 0.88 13.20 0.66 66.76 0.76
IPSW Ipswich SB of Ipswich MA* 5.28 5.28 1.24 22.32 6.19 0.94 16.84 0.79 90.70 0.89
JXVL Jacksonville Bancorp of TX 14.73 14.73 1.45 9.79 6.60 1.45 9.79 0.75 65.39 0.64
JXSB Jcksnville SB,MHC of IL (45.6) 10.38 10.38 0.59 5.64 2.37 0.38 3.65 0.86 54.02 0.61
JSBA Jefferson Svgs Bancorp of MO 9.39 7.46 0.82 9.53 3.37 0.76 8.88 0.66 96.80 0.88
JOAC Joachim Bancorp, Inc. of MO(8) 28.92 28.92 0.76 2.64 2.18 0.76 2.64 0.25 89.29 0.30
KSBK KSB Bancorp of Kingfield ME* 7.36 7.00 1.07 14.93 6.32 1.07 14.93 NA NA 1.10
KFBI Klamath First Bancorp of OR 15.01 13.78 0.97 5.86 4.39 0.97 5.86 0.02 765.13 0.25
LSBI LSB Fin. Corp. of Lafayette IN 8.41 8.41 0.82 9.46 5.73 0.74 8.47 1.69 41.16 0.81
LVSB Lakeview Financial of NJ 9.65 7.92 1.44 13.78 7.51 0.90 8.63 1.27 57.56 1.42
LARK Landmark Bancshares, Inc of KS 14.12 14.12 1.08 7.66 5.49 0.95 6.73 0.21 217.31 0.63
LARL Laurel Capital Group of PA 10.63 10.63 1.43 13.75 6.78 1.40 13.45 0.37 226.91 1.24
LSBX Lawrence Savings Bank of MA* 11.13 11.13 2.47 25.38 12.99 2.43 25.00 0.40 218.48 1.79
LFED Leeds Fed Bksr MHC of MD (36.3 16.50 16.50 1.18 7.20 3.34 1.18 7.20 0.03 560.82 0.29
LXMO Lexington B&L Fin. Corp. of MO 18.02 16.90 0.95 4.19 3.90 0.95 4.19 0.47 135.29 0.95
LFCO Life Financial Corp of CA(8) 15.12 15.12 4.91 32.88 10.15 5.09 34.09 2.43 43.86 1.76
LFBI Little Falls Bancorp of NJ 10.20 9.42 0.58 4.85 3.85 0.55 4.66 0.43 78.51 0.81
LOGN Logansport Fin. Corp. of IN 18.86 18.86 1.49 7.78 5.80 1.52 7.93 0.57 46.97 0.37
LISB Long Island Bancorp, Inc of NY(8) 8.95 8.88 0.87 9.63 3.56 0.71 7.78 0.86 62.70 0.91
MAFB MAF Bancorp, Inc. of IL 7.74 6.87 1.12 14.44 6.61 1.09 14.04 0.55 80.77 0.56
MBLF MBLA Financial Corp. of MO 12.68 12.68 0.81 6.30 5.93 0.83 6.43 0.55 59.37 0.50
MECH MECH Financial Inc of CT* 9.59 9.59 1.54 15.45 8.62 1.54 15.45 0.56 258.21 2.28
MFBC MFB Corp. of Mishawaka IN 11.77 11.77 0.84 6.40 4.94 0.82 6.30 0.02 645.16 0.18
MSBF MSB Financial, Inc of MI 16.70 16.70 1.55 9.28 5.71 1.38 8.23 0.74 60.27 0.49
MARN Marion Capital Holdings of IN 20.55 20.11 1.33 6.13 4.85 1.33 6.13 1.00 106.41 1.26
MRKF Market Fin. Corp. of OH 35.28 35.28 1.13 3.21 3.46 1.13 3.21 0.33 27.08 0.17
MFSL Maryland Fed. Bancorp of MD(8) 8.76 8.68 0.62 7.09 2.92 0.87 9.96 0.66 60.90 0.48
MASB MassBank Corp. of Reading MA* 11.52 11.36 1.15 10.59 5.76 1.03 9.55 0.17 152.27 0.86
MFLR Mayflower Co-Op. Bank of MA* 9.75 9.61 1.11 11.52 6.57 1.05 10.93 0.69 124.95 1.49
MDBK Medford Bancorp, Inc. of MA* 9.24 8.73 1.08 11.95 6.25 1.01 11.26 0.13 481.96 1.17
MWBX MetroWest Bank of MA* 7.21 7.21 1.30 17.59 6.97 1.27 17.26 0.70 208.27 2.01
METF Metropolitan Fin. Corp. of OH 3.86 3.57 0.74 18.94 6.20 0.66 16.70 0.92 64.73 0.78
MIFC Mid Iowa Financial Corp. of IA 8.85 8.84 1.16 12.64 7.49 1.25 13.64 0.07 275.00 0.41
MCBN Mid-Coast Bancorp of ME 8.47 8.47 0.78 9.15 5.58 0.72 8.47 0.58 95.07 0.68
MWBI Midwest Bancshares, Inc. of IA 6.89 6.89 0.89 12.81 8.19 0.78 11.22 0.66 43.60 0.50
MFFC Milton Fed. Fin. Corp. of OH 11.35 11.35 0.68 5.39 3.91 0.61 4.79 0.28 85.06 0.36
MBSP Mitchell Bancorp, Inc. of NC 39.32 39.32 1.44 3.47 3.22 1.44 3.47 1.56 33.74 0.68
MBBC Monterey Bay Bancorp of CA 11.68 10.92 0.42 3.72 2.57 0.39 3.45 0.35 131.09 0.67
MONT Montgomery Fin. Corp. of IN 18.25 18.25 0.80 4.71 3.94 0.80 4.71 NA NA 0.19
MSBK Mutual SB, FSB of Bay City MI 5.07 5.07 -1.31 -22.89 -17.11 -0.46 -8.09 0.07 427.08 0.63
MYST Mystic Financial of MA* 19.06 19.06 0.73 5.82 3.41 0.67 5.38 0.25 254.55 0.91
NHTB NH Thrift Bancshares of NH 8.09 7.03 0.90 11.47 6.97 0.83 10.62 0.76 126.05 1.20
NSLB NS&L Bancorp, Inc of Neosho MO 18.78 18.65 0.68 3.49 3.35 0.68 3.49 0.11 73.53 0.14
NSSY NSS Bancorp of CT* 8.12 7.90 1.00 12.37 6.54 1.14 13.99 NA NA 1.31
NMSB Newmil Bancorp, Inc. of CT* 8.91 8.91 0.84 8.78 5.58 0.83 8.66 0.63 215.34 2.87
NBCP Niagara Bancorp of NY MHC(45.4* 12.03 12.03 0.55 4.56 3.98 0.55 4.56 0.25 217.16 1.10
NBSI North Bancshares of Chicago IL 11.45 11.45 0.47 3.48 2.71 0.44 3.24 NA NA 0.27
FFFD North Central Bancshares of IA 15.43 13.42 1.14 7.38 5.24 1.14 7.38 0.16 472.78 1.02
NEIB Northeast Indiana Bncrp of IN 13.34 13.34 1.20 8.36 6.19 1.20 8.36 0.18 352.92 0.72
NWSB Northwest Bcrp MHC of PA (30.7 8.85 7.91 0.95 10.14 2.75 0.95 10.14 0.69 89.55 0.83
NWEQ Northwest Equity Corp. of WI 11.60 11.60 1.06 9.03 5.99 1.01 8.66 1.35 35.37 0.58
NTMG Nutmeg FS&LA of CT 5.83 5.83 0.51 8.66 5.24 0.35 6.08 NA NA 0.55
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)
- ---------------------------------------
ITLA ITLA Capital Corp of CA* 13.02 165.64 16.85 166.14 13.02 0.00 0.00 0.00
ICBC Independence Comm Bnk Cp of NY NM 133.94 29.07 143.06 NM 0.00 0.00 0.00
IFSB Independence FSB of DC 16.74 128.25 9.29 144.04 NM 0.25 1.37 22.94
INBI Industrial Bancorp of OH 18.69 158.57 26.13 158.57 18.69 0.60 3.12 58.25
IWBK Interwest Bancorp of WA 19.58 279.93 18.92 284.33 23.15 0.76 1.62 31.67
IPSW Ipswich SB of Ipswich MA* 16.16 326.29 17.23 326.29 21.41 0.16 0.93 15.09
JXVL Jacksonville Bancorp of TX 15.15 145.21 21.39 145.21 15.15 0.50 2.41 36.50
JXSB Jcksnville SB,MHC of IL (45.6) NM 232.94 24.18 232.94 NM 0.30 1.40 58.82
JSBA Jefferson Svgs Bancorp of MO 29.66 260.78 24.48 328.09 NM 0.28 0.93 27.45
JOAC Joachim Bancorp, Inc. of MO(8) NM 124.00 35.86 124.00 NM 0.50 2.94 NM
KSBK KSB Bancorp of Kingfield ME* 15.83 217.14 15.98 228.37 15.83 0.10 0.53 8.33
KFBI Klamath First Bancorp of OR 22.80 129.46 19.43 141.05 22.80 0.34 1.75 40.00
LSBI LSB Fin. Corp. of Lafayette IN 17.44 158.73 13.36 158.73 19.48 0.38 1.27 22.09
LVSB Lakeview Financial of NJ 13.32 206.38 19.92 251.56 21.27 0.25 1.03 13.74
LARK Landmark Bancshares, Inc of KS 18.21 138.35 19.53 138.35 20.71 0.60 2.21 40.27
LARL Laurel Capital Group of PA 14.75 194.50 20.68 194.50 15.07 0.52 2.54 37.41
LSBX Lawrence Savings Bank of MA* 7.70 170.63 19.00 170.63 7.82 0.00 0.00 0.00
LFED Leeds Fed Bksr MHC of MD (36.3 29.92 207.46 34.23 207.46 29.92 0.56 2.84 NM
LXMO Lexington B&L Fin. Corp. of MO 25.61 104.54 18.84 111.44 25.61 0.30 1.89 48.39
LFCO Life Financial Corp of CA(8) 9.85 239.15 36.15 239.15 9.50 0.00 0.00 0.00
LFBI Little Falls Bancorp of NJ 26.00 133.29 13.59 144.34 27.08 0.20 1.03 26.67
LOGN Logansport Fin. Corp. of IN 17.25 129.60 24.44 129.60 16.91 0.40 2.32 40.00
LISB Long Island Bancorp, Inc of NY(8) 28.08 261.15 23.38 263.38 NM 0.60 0.98 27.40
MAFB MAF Bancorp, Inc. of IL 15.13 210.90 16.32 237.72 15.56 0.42 1.10 16.67
MBLF MBLA Financial Corp. of MO 16.87 106.49 13.50 106.49 16.53 0.40 1.66 27.97
MECH MECH Financial Inc of CT* 11.60 168.49 16.16 168.49 11.60 0.60 2.08 24.10
MFBC MFB Corp. of Mishawaka IN 20.23 127.96 15.06 127.96 20.54 0.34 1.28 25.95
MSBF MSB Financial, Inc of MI 17.53 157.85 26.35 157.85 19.77 0.30 1.76 30.93
MARN Marion Capital Holdings of IN 20.62 126.68 26.03 129.41 20.62 0.88 3.12 64.23
MRKF Market Fin. Corp. of OH 28.92 91.02 32.11 91.02 28.92 0.28 2.02 58.33
MFSL Maryland Fed. Bancorp of MD(8) NM 242.69 21.27 245.13 24.38 0.45 1.15 39.47
MASB MassBank Corp. of Reading MA* 17.35 170.85 19.68 173.23 19.25 1.00 1.96 34.01
MFLR Mayflower Co-Op. Bank of MA* 15.22 165.97 16.19 168.44 16.05 0.80 3.37 51.28
MDBK Medford Bancorp, Inc. of MA* 16.01 182.67 16.87 193.27 16.99 0.80 1.92 30.77
MWBX MetroWest Bank of MA* 14.35 236.28 17.04 236.28 14.62 0.12 1.55 22.22
METF Metropolitan Fin. Corp. of OH 16.13 276.75 10.69 299.40 18.29 0.00 0.00 0.00
MIFC Mid Iowa Financial Corp. of IA 13.35 157.35 13.93 157.56 12.38 0.08 0.67 8.99
MCBN Mid-Coast Bancorp of ME 17.91 160.00 13.56 160.00 19.35 0.17 1.42 25.37
MWBI Midwest Bancshares, Inc. of IA 12.21 148.03 10.20 148.03 13.94 0.28 1.78 21.71
MFFC Milton Fed. Fin. Corp. of OH 25.60 140.26 15.92 140.26 28.80 0.60 3.72 NM
MBSP Mitchell Bancorp, Inc. of NC NM 107.37 42.22 107.37 NM 0.40 2.39 74.07
MBBC Monterey Bay Bancorp of CA NM 143.78 16.79 153.70 NM 0.14 0.65 25.45
MONT Montgomery Fin. Corp. of IN 25.38 105.31 19.22 105.31 25.38 0.22 1.73 44.00
MSBK Mutual SB, FSB of Bay City MI NM 151.42 7.68 151.42 NM 0.00 0.00 NM
MYST Mystic Financial of MA* 29.33 115.53 22.02 115.53 NM 0.20 1.31 38.46
NHTB NH Thrift Bancshares of NH 14.34 157.13 12.72 180.89 15.48 0.60 3.08 44.12
NSLB NS&L Bancorp, Inc of Neosho MO 29.81 105.08 19.74 105.84 29.81 0.50 2.84 NM
NSSY NSS Bancorp of CT* 15.28 189.11 15.35 194.29 13.52 0.52 1.20 18.37
NMSB Newmil Bancorp, Inc. of CT* 17.91 154.25 13.74 154.25 18.15 0.32 2.42 43.24
NBCP Niagara Bancorp of NY MHC(45.4* 25.10 114.56 13.78 114.56 25.10 0.00 0.00 0.00
NBSI North Bancshares of Chicago IL NM 153.30 17.56 153.30 NM 0.40 2.46 NM
FFFD North Central Bancshares of IA 19.08 140.78 21.72 161.77 19.08 0.32 1.45 27.59
NEIB Northeast Indiana Bncrp of IN 16.17 135.90 18.13 135.90 16.17 0.34 1.58 25.56
NWSB Northwest Bcrp MHC of PA (30.7 NM NM 31.10 NM NM 0.16 1.00 36.36
NWEQ Northwest Equity Corp. of WI 16.70 148.00 17.18 148.00 17.42 0.64 3.14 52.46
NTMG Nutmeg FS&LA of CT 19.09 165.35 9.65 165.35 27.20 0.20 1.84 35.09
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 June 5, 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)
- ---------------------------------------
OHSL OHSL Financial Corp. of OH 10.55 10.55 0.86 7.92 4.75 0.80 7.34 0.17 126.00 0.32
OCFC Ocean Fin. Corp. of NJ 14.22 14.22 0.95 6.13 4.62 0.95 6.13 0.48 92.94 0.82
OTFC Oregon Trail Fin. Corp. of OR 25.86 25.86 1.12 9.47 4.09 1.14 9.61 0.18 180.70 0.55
OFCP Ottawa Financial Corp. of MI 8.45 6.92 0.87 10.06 4.97 0.81 9.29 0.36 104.99 0.44
PFFB PFF Bancorp of Pomona CA 9.04 8.95 0.60 6.06 4.84 0.56 5.68 1.33 69.73 1.40
PSFI PS Financial of Chicago IL 27.81 27.81 1.10 3.19 3.35 1.85 5.37 2.36 8.79 0.42
PVFC PVF Capital Corp. of OH 7.20 7.20 1.34 18.73 7.32 1.26 17.66 0.69 95.38 0.74
PBCI Pamrapo Bancorp, Inc. of NJ 12.82 12.75 1.32 10.26 6.12 1.27 9.91 1.94 32.66 1.11
PFED Park Bancorp of Chicago IL 19.91 19.91 0.89 4.10 3.68 0.96 4.39 0.10 253.81 0.69
PVSA Parkvale Financial Corp of PA 7.82 7.78 1.08 13.98 6.65 1.08 13.98 0.52 262.03 1.79
PBHC Pathfinder BC MHC of NY (46.1)* 11.76 9.97 0.91 7.74 2.79 0.73 6.24 1.33 34.08 0.70
PEEK Peekskill Fin. Corp. of NY 22.99 22.99 1.03 4.09 3.50 1.06 4.22 0.89 38.25 1.39
PFSB PennFed Fin. Services of NJ 7.20 6.24 0.81 11.10 6.76 0.78 10.81 0.50 36.37 0.26
PWBK Pennwood Bancorp, Inc. of PA 18.34 18.34 0.77 4.19 3.57 0.92 5.03 1.60 44.68 1.09
PBKB People's Bancshares of MA* 3.67 3.54 0.76 16.93 6.07 0.33 7.45 0.42 119.36 0.86
TSBS Peoples Bancorp Inc of NJ* 12.60 11.41 1.06 6.69 2.00 0.79 5.02 0.64 63.09 0.86
PFDC Peoples Bancorp of Auburn IN 15.09 15.09 1.50 9.85 5.67 1.50 9.85 0.21 144.43 0.36
PBCT Peoples Bank, MHC of CT (40.1)* 9.23 7.91 1.18 13.44 3.91 0.63 7.21 0.66 166.94 1.76
PFFC Peoples Fin. Corp. of OH 19.15 19.15 1.29 6.79 5.50 0.50 2.63 0.01 NA 0.30
PHBK Peoples Heritage Fin Grp of ME* 6.72 5.11 1.22 16.61 5.81 1.21 16.48 0.91 99.98 1.26
PSFC Peoples Sidney Fin. Corp of OH 25.15 25.15 1.24 5.56 2.91 1.24 5.56 1.10 35.55 0.44
PERM Permanent Bancorp, Inc. of IN 10.00 9.88 0.62 6.56 3.94 0.61 6.46 0.70 70.95 0.97
PCBC Perry Co. Fin. Corp. of MO 18.94 18.94 1.03 5.46 4.45 1.02 5.41 NA NA 0.16
PHFC Pittsburgh Home Fin Corp of PA 7.43 7.34 0.79 8.24 6.35 0.67 6.99 1.37 34.44 0.79
PFSL Pocahontas Bancorp of AR 14.51 14.51 0.62 7.74 3.64 0.61 7.53 0.25 168.15 0.96
PTRS Potters Financial Corp of OH 8.71 8.71 0.80 9.05 5.39 0.78 8.78 0.13 NA 2.65
PHSB Ppls Home SB, MHC of PA (45.0) 12.76 12.76 0.81 7.30 3.13 0.72 6.49 0.36 164.84 1.32
PRBC Prestige Bancorp of PA 9.83 9.83 0.52 4.79 3.41 0.51 4.66 0.40 65.18 0.40
PFNC Progress Financial Corp. of PA 5.52 4.90 0.84 15.84 4.56 0.75 14.23 1.31 65.06 1.19
PSBK Progressive Bank, Inc. of NY(8)* 8.90 8.12 0.97 11.15 5.29 0.97 11.20 0.76 142.41 1.70
PROV Provident Fin. Holdings of CA 11.09 11.09 0.74 5.81 4.66 0.36 2.85 1.34 61.50 0.96
PULB Pulaski Bk,SB MHC of MO (29.8)(8) 13.41 13.41 1.07 8.15 2.01 0.92 6.99 NA NA 0.45
PLSK Pulaski SB, MHC of NJ (46.0) 11.54 11.54 0.63 5.86 3.01 0.63 5.86 0.73 67.79 0.93
PULS Pulse Bancorp of S. River NJ 8.34 8.34 1.07 13.13 6.55 1.08 13.27 0.60 61.50 1.41
QCFB QCF Bancorp of Virginia MN 17.57 17.57 1.63 9.26 6.02 1.63 9.26 1.22 67.47 1.92
QCBC Quaker City Bancorp of CA 8.76 8.76 0.76 8.74 6.14 0.74 8.48 1.25 74.34 1.17
QCSB Queens County Bancorp of NY* 10.45 10.45 1.47 12.54 3.38 1.45 12.37 0.55 106.38 0.67
RARB Raritan Bancorp of Raritan NJ* 7.54 7.44 0.99 13.02 5.50 0.97 12.79 0.34 234.10 1.20
REDF RedFed Bancorp of Redlands CA(8) 8.58 8.55 1.17 13.96 7.53 1.21 14.42 1.81 40.07 0.81
RELY Reliance Bancorp, Inc. of NY 8.89 6.14 0.90 10.66 4.92 0.95 11.27 NA NA 0.90
RELI Reliance Bancshares Inc of WI 49.97 49.97 1.03 2.11 2.35 1.03 2.11 NA NA 0.60
RCBK Richmond County Fin Corp of NY 22.04 21.95 0.19 1.11 0.49 1.53 9.09 0.47 96.51 1.17
RIVR River Valley Bancorp of IN 13.13 12.95 0.94 7.53 5.79 0.78 6.30 NA NA 1.00
RVSB Riverview Bancorp of WA 22.37 21.63 1.55 8.56 3.82 1.47 8.16 0.19 186.36 0.60
RSLN Roslyn Bancorp, Inc. of NY* 16.76 16.68 1.31 7.08 4.65 1.26 6.81 0.25 264.59 2.23
SCCB S. Carolina Comm. Bnshrs of SC 20.38 20.38 1.01 4.23 3.68 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 1.32 0.34 3.72 0.27 170.49 0.94
SFED SFS Bancorp of Schenectady NY 12.36 12.36 0.64 5.13 4.18 0.62 4.96 0.72 66.56 0.61
SGVB SGV Bancorp of W. Covina CA 7.89 7.78 0.38 5.10 3.64 0.43 5.79 1.45 24.47 0.46
SISB SIS Bancorp, Inc. of MA* 7.15 7.15 0.69 9.56 3.77 0.89 12.33 0.43 300.83 2.70
SWCB Sandwich Bancorp of MA(8)* 8.08 7.83 0.99 12.24 4.02 0.95 11.77 0.34 228.40 1.12
SFSL Security First Corp. of OH(8) 9.43 9.30 1.39 14.89 4.92 1.39 14.89 0.42 178.44 0.82
SKAN Skaneateles Bancorp Inc of NY* 6.98 6.80 0.64 9.32 6.40 0.63 9.07 2.01 49.89 1.21
SOBI Sobieski Bancorp of S. Bend IN 14.10 14.10 0.58 3.93 3.28 0.58 3.93 0.29 77.82 0.28
SOSA Somerset Savings Bank of MA(8)* 7.25 7.25 1.46 22.33 9.09 1.40 21.36 4.58 32.38 1.90
SSFC South Street Fin. Corp. of NC* 15.88 15.88 0.64 2.97 3.28 0.66 3.06 0.22 88.30 0.39
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)
- ---------------------------------------
OHSL OHSL Financial Corp. of OH 21.04 162.12 17.10 162.12 22.70 0.50 2.90 60.98
OCFC Ocean Fin. Corp. of NJ 21.67 140.29 19.95 140.29 21.67 0.48 2.46 53.33
OTFC Oregon Trail Fin. Corp. of OR 24.46 108.41 28.03 108.41 24.10 0.20 1.20 29.41
OFCP Ottawa Financial Corp. of MI 20.14 199.31 16.84 243.29 21.80 0.40 1.38 27.78
PFFB PFF Bancorp of Pomona CA 20.68 130.47 11.80 131.80 22.09 0.00 0.00 0.00
PSFI PS Financial of Chicago IL 29.84 116.81 32.48 116.81 17.74 0.48 3.66 NM
PVFC PVF Capital Corp. of OH 13.66 233.69 16.83 233.69 14.48 0.00 0.00 0.00
PBCI Pamrapo Bancorp, Inc. of NJ 16.33 164.24 21.06 165.11 16.92 1.12 3.96 64.74
PFED Park Bancorp of Chicago IL 27.17 111.34 22.17 111.34 25.34 0.00 0.00 0.00
PVSA Parkvale Financial Corp of PA 15.05 198.19 15.49 199.18 15.05 0.60 1.89 28.44
PBHC Pathfinder BC MHC of NY (46.1)* NM 273.01 32.11 322.00 NM 0.20 0.90 32.26
PEEK Peekskill Fin. Corp. of NY 28.57 120.64 27.73 120.64 27.69 0.36 2.00 57.14
PFSB PennFed Fin. Services of NJ 14.78 155.11 11.16 178.95 15.18 0.14 0.82 12.17
PWBK Pennwood Bancorp, Inc. of PA 28.00 120.79 22.15 120.79 23.33 0.27 1.93 54.00
PBKB People's Bancshares of MA* 16.47 273.95 10.05 283.75 NM 0.52 1.99 32.70
TSBS Peoples Bancorp Inc of NJ* NM 323.62 40.77 NM NM 0.10 1.00 50.00
PFDC Peoples Bancorp of Auburn IN 17.64 169.40 25.56 169.40 17.64 0.44 1.93 34.11
PBCT Peoples Bank, MHC of CT (40.1)* 25.54 288.77 26.66 337.11 NM 0.84 2.21 56.38
PFFC Peoples Fin. Corp. of OH 18.17 122.68 23.49 122.68 NM 0.60 4.40 NM
PHBK Peoples Heritage Fin Grp of ME* 17.20 267.12 17.94 NM 17.32 0.44 1.87 32.12
PSFC Peoples Sidney Fin. Corp of OH NM 163.95 41.24 163.95 NM 0.28 1.15 39.44
PERM Permanent Bancorp, Inc. of IN 25.40 160.32 16.03 162.27 25.81 0.22 1.38 34.92
PCBC Perry Co. Fin. Corp. of MO 22.48 118.74 22.49 118.74 22.70 0.50 2.14 48.08
PHFC Pittsburgh Home Fin Corp of PA 15.74 138.06 10.26 139.70 18.56 0.24 1.36 21.43
PFSL Pocahontas Bancorp of AR 27.44 113.30 16.44 113.30 28.23 0.24 2.43 66.67
PTRS Potters Financial Corp of OH 18.56 164.47 14.32 164.47 19.13 0.24 1.28 23.76
PHSB Ppls Home SB, MHC of PA (45.0) NM 194.87 24.87 194.87 NM 0.24 1.19 38.10
PRBC Prestige Bancorp of PA 29.29 136.67 13.43 136.67 NM 0.17 0.83 24.29
PFNC Progress Financial Corp. of PA 21.91 306.12 16.90 345.13 24.38 0.12 0.62 13.48
PSBK Progressive Bank, Inc. of NY(8)* 18.92 203.09 18.07 222.58 18.83 0.80 1.90 36.04
PROV Provident Fin. Holdings of CA 21.46 125.28 13.89 125.28 NM 0.00 0.00 0.00
PULB Pulaski Bk,SB MHC of MO (29.8)(8) NM NM 52.80 NM NM 1.10 2.43 NM
PLSK Pulaski SB, MHC of NJ (46.0) NM 174.81 20.17 174.81 NM 0.30 1.64 54.55
PULS Pulse Bancorp of S. River NJ 15.27 190.95 15.92 190.95 15.10 0.80 2.90 44.20
QCFB QCF Bancorp of Virginia MN 16.62 153.94 27.05 153.94 16.62 0.00 0.00 0.00
QCBC Quaker City Bancorp of CA 16.30 136.31 11.93 136.31 16.79 0.00 0.00 0.00
QCSB Queens County Bancorp of NY* 29.63 NM 40.87 NM NM 1.00 2.25 66.67
RARB Raritan Bancorp of Raritan NJ* 18.18 226.93 17.11 229.89 18.52 0.60 2.00 36.36
REDF RedFed Bancorp of Redlands CA(8) 13.27 169.25 14.52 169.82 12.85 0.00 0.00 0.00
RELY Reliance Bancorp, Inc. of NY 20.34 194.98 17.34 282.58 19.24 0.72 1.83 37.31
RELI Reliance Bancshares Inc of WI NM 91.30 45.63 91.30 NM 0.00 0.00 0.00
RCBK Richmond County Fin Corp of NY NM 151.52 33.39 152.14 25.00 0.20 1.08 NM
RIVR River Valley Bancorp of IN 17.27 125.66 16.50 127.43 20.65 0.20 1.05 18.18
RVSB Riverview Bancorp of WA 26.17 168.68 37.73 174.48 27.46 0.14 0.84 21.88
RSLN Roslyn Bancorp, Inc. of NY* 21.49 152.52 25.57 153.25 22.35 0.34 1.54 33.01
SCCB S. Carolina Comm. Bnshrs of SC 27.19 133.68 27.24 133.68 27.19 0.64 2.94 NM
SBFL SB Fngr Lakes MHC of NY (33.1) NM 321.80 27.94 321.80 NM 0.24 1.22 NM
SFED SFS Bancorp of Schenectady NY 23.91 122.56 15.15 122.56 24.72 0.32 1.45 34.78
SGVB SGV Bancorp of W. Covina CA 27.47 134.40 10.60 136.21 24.17 0.00 0.00 0.00
SISB SIS Bancorp, Inc. of MA* 26.54 223.65 15.98 223.65 20.57 0.64 1.56 41.29
SWCB Sandwich Bancorp of MA(8)* 24.90 292.64 23.65 302.17 25.91 1.40 2.19 54.47
SFSL Security First Corp. of OH(8) 20.33 292.06 27.55 296.21 20.33 0.36 1.44 29.27
SKAN Skaneateles Bancorp Inc of NY* 15.63 140.22 9.78 143.91 16.06 0.28 1.60 25.00
SOBI Sobieski Bancorp of S. Bend IN NM 117.61 16.58 117.61 NM 0.32 1.64 50.00
SOSA Somerset Savings Bank of MA(8)* 11.00 219.05 15.88 219.05 11.50 0.00 0.00 0.00
SSFC South Street Fin. Corp. of NC* NM 132.29 21.01 132.29 29.55 0.40 4.10 NM
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 June 5, 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)
- ---------------------------------------
SBAN SouthBanc Shares Inc. of SC 21.85 21.85 0.94 4.29 3.73 0.94 4.29 NA NA 1.02
SCBS Southern Commun. Bncshrs of AL 20.42 20.42 1.15 5.98 4.06 1.15 5.98 0.36 308.46 1.70
SMBC Southern Missouri Bncrp of MO 16.77 16.77 0.70 4.27 3.26 0.66 4.02 0.63 89.98 0.76
SWBI Southwest Bancshares of IL(8) 11.62 11.62 1.14 10.03 4.85 1.12 9.84 0.16 122.22 0.28
SVRN Sovereign Bancorp, Inc. of PA 4.92 4.22 0.45 9.96 2.65 0.68 15.15 0.63 98.91 1.05
STFR St. Francis Cap. Corp. of WI 8.00 7.15 0.80 9.96 5.87 0.77 9.60 0.21 215.62 0.95
SPBC St. Paul Bancorp, Inc. of IL 9.34 9.31 1.08 12.09 5.79 1.06 11.84 0.20 367.36 1.02
SFFC StateFed Financial Corp. of IA 17.73 17.73 1.25 7.09 4.87 1.25 7.09 1.70 15.32 0.33
SFIN Statewide Fin. Corp. of NJ 9.83 9.81 0.81 8.48 5.48 0.80 8.41 0.51 84.18 0.87
STSA Sterling Financial Corp. of WA 5.60 5.22 0.54 10.92 4.87 0.47 9.53 0.72 68.74 0.83
SFSB SuburbFed Fin. Corp. of IL(8) 6.73 6.71 0.63 9.57 4.55 0.48 7.30 1.00 19.60 0.30
ROSE T R Financial Corp. of NY* 6.15 6.15 0.99 15.97 4.95 0.88 14.13 0.57 65.67 0.69
THRD TF Financial Corp. of PA 7.97 6.71 0.74 7.44 5.65 0.63 6.28 0.30 106.83 0.84
TPNZ Tappan Zee Fin., Inc. of NY(8) 17.02 17.02 0.84 4.86 3.48 0.81 4.65 1.24 43.88 1.20
TSBK Timberland Bancorp of WA 32.13 32.13 1.63 10.61 3.73 1.55 10.10 3.67 18.18 0.93
TRIC Tri-County Bancorp of WY 15.73 15.73 1.01 6.58 5.22 1.05 6.84 NA NA 0.98
TWIN Twin City Bancorp, Inc. of TN 12.75 12.75 1.03 8.01 6.40 0.86 6.64 0.10 102.83 0.14
USAB USABancshares, Inc of PA* 12.49 12.42 0.20 2.00 0.62 0.35 3.56 0.22 265.63 0.99
UCBC Union Community Bancorp of IN 40.02 40.02 1.44 5.52 3.16 1.44 5.52 0.45 51.96 0.30
UFRM United FSB of Rocky Mount NC(8) 7.49 7.49 0.61 8.23 3.00 0.40 5.34 0.64 137.38 1.02
UBMT United Fin. Corp. of MT 25.61 25.61 1.31 5.53 2.87 1.31 5.53 0.60 101.19 1.07
UTBI United Tenn. Bancshares of TN 26.99 26.99 1.01 6.08 3.83 1.01 6.08 0.59 142.44 1.31
WHGB WHG Bancshares of MD 19.66 19.66 0.76 3.59 3.38 0.77 3.65 1.06 24.18 0.39
WSFS WSFS Financial Corp. of DE* 5.73 5.69 1.11 20.40 6.16 1.10 20.25 1.38 117.99 3.31
WVFC WVS Financial Corp. of PA 10.66 10.66 1.31 11.04 5.57 1.32 11.15 0.20 310.17 1.14
WRNB Warren Bancorp of Peabody MA* 10.78 10.78 2.01 19.47 7.92 1.80 17.42 1.01 107.31 1.63
WSBI Warwick Community Bncrp of NY* 23.76 23.76 1.04 4.37 3.26 1.04 4.37 0.52 75.47 0.79
WFSL Washington Federal, Inc. of WA 12.90 11.90 1.87 15.50 7.29 1.85 15.35 0.75 55.29 0.56
WAMU Washington Mutual, Inc. of WA* 5.35 4.99 0.52 9.97 1.91 0.93 17.81 0.78 83.87 0.97
WYNE Wayne Bancorp, Inc. of NJ 12.57 12.57 0.76 5.59 3.09 0.76 5.59 0.90 91.95 1.18
WAYN Wayne Svgs Bks MHC of OH (47.8 9.48 9.48 0.75 8.03 2.71 0.70 7.51 NA NA NA
WCFB Wbstr Cty FSB MHC of IA (45.2) 23.49 23.49 1.46 6.23 3.44 1.46 6.23 0.12 353.21 0.70
WBST Webster Financial Corp. of CT 5.44 4.75 0.54 10.34 3.50 0.82 15.74 0.59 114.77 1.33
WEFC Wells Fin. Corp. of Wells MN 14.71 14.71 1.09 7.67 5.26 1.07 7.46 0.14 279.23 0.44
WCBI WestCo Bancorp, Inc. of IL 15.37 15.37 1.51 9.79 6.26 1.41 9.12 0.45 62.71 0.37
WSTR WesterFed Fin. Corp. of MT 10.40 8.45 0.81 7.26 5.23 0.78 7.04 0.64 76.69 0.75
WOFC Western Ohio Fin. Corp. of OH 14.68 13.71 0.04 0.26 0.24 0.08 0.61 0.91 115.97 1.44
WEHO Westwood Hmstd Fin Corp of OH 22.45 22.45 0.67 2.33 2.43 1.05 3.68 0.12 178.06 0.23
FFWD Wood Bancorp of OH 13.20 13.20 1.44 11.31 5.09 1.23 9.66 0.35 110.31 0.46
YFCB Yonkers Fin. Corp. of NY 13.54 13.54 1.05 7.10 5.44 1.03 6.96 0.41 87.23 0.77
YFED York Financial Corp. of PA 8.86 8.86 0.96 11.17 5.75 0.80 9.29 2.37 28.49 0.81
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)
- ---------------------------------------
SBAN SouthBanc Shares Inc. of SC 26.79 114.99 25.13 114.99 26.79 1.40 7.16 NM
SCBS Southern Commun. Bncshrs of AL 24.64 135.51 27.67 135.51 24.64 0.00 0.00 0.00
SMBC Southern Missouri Bncrp of MO NM 130.70 21.92 130.70 NM 0.50 2.33 71.43
SWBI Southwest Bancshares of IL(8) 20.62 193.83 22.53 193.83 21.03 0.80 2.52 51.95
SVRN Sovereign Bancorp, Inc. of PA NM 259.40 12.77 302.26 24.83 0.08 0.46 17.39
STFR St. Francis Cap. Corp. of WI 17.04 167.33 13.39 187.28 17.68 0.56 1.33 22.58
SPBC St. Paul Bancorp, Inc. of IL 17.28 199.36 18.63 200.16 17.65 0.40 1.61 27.78
SFFC StateFed Financial Corp. of IA 20.54 141.54 25.09 141.54 20.54 0.20 1.39 28.57
SFIN Statewide Fin. Corp. of NJ 18.24 152.50 14.99 152.82 18.39 0.44 1.98 36.07
STSA Sterling Financial Corp. of WA 20.54 185.79 10.41 199.38 23.53 0.00 0.00 0.00
SFSB SuburbFed Fin. Corp. of IL(8) 21.98 199.79 13.44 200.38 28.81 0.32 0.68 14.88
ROSE T R Financial Corp. of NY* 20.22 300.71 18.49 300.71 22.84 0.72 1.70 34.45
THRD TF Financial Corp. of PA 17.69 162.60 12.97 193.16 20.97 0.48 1.85 32.65
TPNZ Tappan Zee Fin., Inc. of NY(8) 28.76 138.26 23.52 138.26 NM 0.28 1.39 40.00
TSBK Timberland Bancorp of WA 26.79 122.41 39.33 122.41 28.13 0.24 1.42 38.10
TRIC Tri-County Bancorp of WY 19.16 122.61 19.28 122.61 18.44 0.44 2.98 57.14
TWIN Twin City Bancorp, Inc. of TN 15.63 123.10 15.70 123.10 18.84 0.40 2.91 45.45
USAB USABancshares, Inc of PA* NM 169.99 21.24 170.99 NM 0.00 0.00 0.00
UCBC Union Community Bancorp of IN NM 104.64 41.88 104.64 NM 0.30 2.02 63.83
UFRM United FSB of Rocky Mount NC(8) NM 256.41 19.22 256.41 NM 0.24 1.33 44.44
UBMT United Fin. Corp. of MT NM 192.01 49.18 192.01 NM 1.00 3.59 NM
UTBI United Tenn. Bancshares of TN 26.11 106.90 28.85 106.90 26.11 1.20 8.06 NM
WHGB WHG Bancshares of MD 29.63 111.58 21.93 111.58 29.09 0.32 2.00 59.26
WSFS WSFS Financial Corp. of DE* 16.22 305.32 17.48 307.08 16.35 0.12 0.56 9.16
WVFC WVS Financial Corp. of PA 17.96 214.87 22.91 214.87 17.79 0.60 3.24 58.25
WRNB Warren Bancorp of Peabody MA* 12.63 229.89 24.79 229.89 14.12 0.36 3.00 37.89
WSBI Warwick Community Bncrp of NY* NM 133.97 31.84 133.97 NM 0.00 0.00 0.00
WFSL Washington Federal, Inc. of WA 13.71 200.92 25.91 217.81 13.85 0.88 3.12 42.72
WAMU Washington Mutual, Inc. of WA* NM 346.50 18.55 NM 29.25 0.80 1.72 NM
WYNE Wayne Bancorp, Inc. of NJ NM 186.12 23.39 186.12 NM 0.20 0.64 20.62
WAYN Wayne Svgs Bks MHC of OH (47.8 NM 287.47 27.26 287.47 NM 0.56 2.00 73.68
WCFB Wbstr Cty FSB MHC of IA (45.2) 29.05 178.45 41.92 178.45 29.05 0.80 4.24 NM
WBST Webster Financial Corp. of CT 28.59 235.87 12.84 270.39 18.79 0.44 1.34 38.26
WEFC Wells Fin. Corp. of Wells MN 19.03 142.10 20.91 142.10 19.55 0.60 2.79 53.10
WCBI WestCo Bancorp, Inc. of IL 15.97 154.59 23.77 154.59 17.13 0.68 2.23 35.60
WSTR WesterFed Fin. Corp. of MT 19.14 129.05 13.42 158.77 19.75 0.50 2.01 38.46
WOFC Western Ohio Fin. Corp. of OH NM 109.87 16.12 117.57 NM 1.00 3.92 NM
WEHO Westwood Hmstd Fin Corp of OH NM 120.28 27.00 120.28 26.02 0.36 2.82 NM
FFWD Wood Bancorp of OH 19.66 213.94 28.23 213.94 23.03 0.34 1.94 38.20
YFCB Yonkers Fin. Corp. of NY 18.39 127.11 17.22 127.11 18.75 0.28 1.48 27.18
YFED York Financial Corp. of PA 17.40 185.26 16.42 185.26 20.91 0.52 2.39 41.60
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
June 5, 1998 9037.7 1113.9 1,782.9 860.6 464.4
(1) End of period data.
Sources: SNL Securities; Wall Street Journal.
EXHIBIT IV-3
Cortland Savings Bank
Historical Thrift Stock Indices
Index Values
Index Values Percent Change Since
-------------------------------------------------- --------------------------------
04/30/98 1 Month YTD LTM 1 Month YTD LTM
- -------------------------------------------------------------------------------------------------------------------------------
All Pub. Traded Thrifts 882.1 869.3 814.1 537.2 1.46 8.35 64.19
MHC Index 1,263.7 1,252.7 1,179.9 587.7 0.88 7.10 115.04
Insurance Indices
- -------------------------------------------------------------------------------------------------------------------------------
SAIF Thrifts 827.9 815.9 764.4 484.2 1.48 8.30 70.99
BIF Thrifts 1,067.4 1,052.3 984.4 689.7 1.44 8.44 54.77
Stock Exchange Indices
- -------------------------------------------------------------------------------------------------------------------------------
AMEX Thrifts 272.9 264.6 255.4 166.7 3.14 6.86 63.71
NYSE Thrifts 566.1 549.2 521.3 314.7 3.09 8.59 79.86
OTC Thrifts 987.3 979.4 911.5 622.5 0.81 8.31 58.61
Geographic Indices
- -------------------------------------------------------------------------------------------------------------------------------
Mid-Atlantic Thrifts 1,911.2 1,833.2 1,735.2 1077.4 4.25 10.15 77.40
Midwestern Thrifts 1,971.0 1,948.7 1,832.9 1,234.5 1.14 7.53 59.65
New England Thrifts 821.0 809.8 778.3 458.4 1.37 5.48 79.10
Southeastern Thrifts 786.9 799.9 776.0 499.4 -1.63 1.40 57.57
Southwestern Thrifts 573.4 558.6 533.5 347.5 2.65 7.47 64.98
Western Thrifts 850.3 848.8 778.8 539.7 0.18 9.17 57.55
Asset Size Indices
- -------------------------------------------------------------------------------------------------------------------------------
Less than $250M 915.8 907.7 869.9 639.4 0.89 5.27 43.21
$250M to $500M 1,393.0 1,371.7 1,312.3 865.2 1.56 6.15 61.00
$500M to $1B 902.6 892.2 846.8 558.9 1.16 6.58 61.49
$1B to $5B 1,051.7 1,022.5 956.8 593.8 2.86 9.92 77.12
Over$5B 555.5 550.0 512.3 344.1 1.00 8.44 61.45
Comparative Indices
- -------------------------------------------------------------------------------------------------------------------------------
Dow Jones Industrials 9,063.4 8,799.6 7,908.3 7,009.0 3.00 14.61 29.31
S&P 500 1,111.8 1,101.8 970.4 801.3 0.91 14.56 38.74
All SNL indices are market-value weighted: i.e., an institution's effect on an
index is proportionate to that institutions 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-Atlantic: 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, WV;
Southwest: CO, LA, NM, OK, TX, UT; West: AZ, AK, CA, HI, ID, MT, NV, OR, WA, WY
Exhibit IV-4
Cortland Savings Bank
New York Thrift Merger and Acquisition Activity 1996 to Present
Seller's Financials
--------------------------------------------------
Total TgEq/ YTD YTD NPAs/ Rsrvs/
Annd Comp Assets Assets ROAA ROAE Assets NPLs
Date Date Buyer ST Seller ST ($000) (%) (%) (%) (%) (%)
- ---- ---- ----- -- ------ -- ------ --- --- --- --- ---
04/03/98 Pending Astoria Financial Cp NY Long Island Bancorp NY 6,072,524 9.10 0.87 9.59 0.89 73.47
04/23/98 Pending Ambanc Holding Co. NY AFSALA Bancorp Inc. NY 160,408 12.52 0.78 6.19 0.30 250.44
12/16/97 Pending Hudson Chartered Bnp NY Progressive Bank NY 884,617 7.93 0.98 11.66 0.92 125.50
03/06/98 Pending USB Holding Company NY Tappan Zee Financial NY 126,470 17.02 0.82 4.78 1.19 45.98
05/26/98 Pending Roslyn Bancorp Inc. NY TR Financial Corp. NY 4,005,695 6.15 0.99 16.05 0.51 80.17
12/16/97 05/29/98 HUBCO, Inc NJ MSB Bancorp NY 773,991 6.23 0.54 6.02 NA NA
10/23/97 04/24/98 HUBCO, Inc NJ Poughkeepsie Finl NY 880,196 8.37 0.54 6.43 3.82 35.46
10/07/97 03/30/98 North Fork Bancorp NY New York Bancorp NY 3,283,653 5.08 1.61 30.99 1.09 58.08
05/21/97 10/03/97 Charter One Fin'l OH RCSB Financial NY 4,032,365 7.66 0.96 12.26 0.66 132.02
03/31/97 10/01/97 Astoria Financial Cp NY Greater New York SB NY 2,541,888 8.25 0.72 9.20 7.84 9.20
04/25/97 09/10/97 Flushing Financial NY New York FSB NY 82,249 9.28 1.32 3.59 1.14 117.28
12/03/96 04/30/97 Dime Bancorp NY BFS Bankorp, Inc. NY 643,180 7.81 1.58 20.12 1.04 94.15
08/22/96 03/01/97 HSBC Holdings Plc FO First FSLA-Rochester NY 7,348,042 5.35 0.75 13.91 0.72 105.64
07/15/96 01/02/97 North Fork Bancorp NY North Side SB NY 1,580,435 7.67 1.29 17.19 0.51 121.82
11/03/95 06/26/96 Dime SB Williamsbrgh NY Conestoga Bancorp NY 485,132 15.93 0.64 3.84 0.19 19.25
09/24/95 02/29/96 Republic New York NY Brooklyn Bancorp NY 4,139,215 8.79 1.00 11.83 13.63 18.75
07/31/95 01/11/96 Reliance Bancorp Inc NY Sunrise Bancorp Inc NY 611,933 10.90 1.11 10.07 0.50 65.45
05/16/95 01/05/96 Independence Cmty NY Bay Ridge Bancorp NY 587,904 17.42 1.60 9.42 3.87 64.35
Average 2,124,439 9.53 1.01 11.29 2.28 83.35
Median 882,407 8.31 0.97 9.83 0.92 73.47
Deal Terms and Pricing at Announcement
---------------------------------------------------------------------------------
Deal Deal Deal Deal Pr/ Deal Pr/ Deal Pr/ TgBk Prm/
Annd Value Pr/Share Consider Pr/Bk Tg Bk 4-Qtr Assets CoreDeps
Date ($M) ($) Type (%) (%) EPS (x) (%) (%)
- ---- ---- --- ---- --- --- ------- --- ---
04/03/98 1765.7 69.360 Stock 299.09 301.83 32.11 29.08 35.57
04/23/98 30.0 20.999 Stock 144.62 144.62 22.58 18.70 8.48
12/16/97 158.7 39.585 Stock NA NA NA NA NA
03/06/98 33.8 22.000 Stock 151.10 151.10 30.56 26.73 14.19
05/26/98 1070.7 56.631 Stock 403.07 403.07 27.23 26.73 41.64
12/16/97 105.0 36.020 Stock 164.85 309.18 32.16 13.57 11.31
10/23/97 143.5 10.613 Stock 181.42 181.42 48.24 16.30 13.37
10/07/97 831.6 37.114 Stock 480.13 480.13 19.95 25.33 43.83
05/21/97 647.5 42.315 Stock 198.10 203.24 17.06 16.06 16.09
03/31/97 344.6 18.938 Mix 167.44 167.44 24.59 13.56 8.48
04/25/97 13.0 272.500 Cash 169.14 170.51 13.13 15.81 10.44
12/03/96 91.8 52.000 Cash 169.38 169.38 9.94 14.27 10.34
08/22/96 652.0 NA Cash 163.00 165.06 12.82 8.87 6.14
07/15/96 216.3 42.790 Stock 168.46 170.07 11.76 13.69 7.98
11/03/95 105.1 21.250 Cash 122.34 122.34 25.91 21.66 7.75
09/24/95 529.6 41.500 Cash 140.68 140.68 14.46 12.79 4.78
07/31/95 112.8 32.000 Cash 159.05 159.05 15.24 18.43 10.37
05/16/95 131.4 22.000 Cash 127.83 127.83 13.33 22.35 7.32
Average 388.0 49.271 200.57 209.82 21.83 18.47 15.18
Median 151.1 37.114 167.44 169.38 19.95 16.30 10.37
Source: SNL Securities, LC.
EXHIBIT IV-5
Cortland Savings Bank
Directors and Management Summary Resumes
WESLEY D. STISSER serves as President and Chief Executive Officer of the
Bank, a position he has held since 1983. Mr. Stisser has been with the Bank for
45 years. He is a graduate of the Graduate School of Savings Banking at Brown
University and the School for Executive Development sponsored by the Community
Bankers Association. An eagle scout and recipient of the Silver Beaver Award
B.S.A., Mr. Stisser is an active member of numerous professional, civic and
community service organizations. He is presently a member of the New York
Savings Bank Life Insurance Fund's Board of Directors and is Chairman of the
Cortland City Police Commission. He is a former member of the Board of Directors
for Cortland Memorial Hospital, serving as its Chairman, and was a member of
SUNY Cortland College Foundation.
EDWARD E. HATTER, Jr was a principal of Hatter Fuel Co., from which he
retired in 1987. Mr. Hatter was active in several community organizations,
serving as Chairman of the Easter Seals drive and holding various offices in the
New York State Jaycees, the Rotary Club and the University Club. He is currently
active in the March of Dimes drive, the Town and River Cruise Club and the Royal
Palm Yacht Club. He was district chairman of the Tioughnioga-Baden Powell
Council, B.S.A. Mr. Hatter resides part time in Florida.
JUDITH F. RIEHLMAN is the Cortland County Clerk. Mrs. Riehlman and her
husband own and operate a family run farm and Birch Farm Structures, a furniture
retailer. Active in numerous community organizations, Mrs. Riehlman currently
serves as Chairperson of the Cortland County Republican Committee, President of
the American Agricultural Foundation, Inc. and as a Director of Family
Counseling Services.
TERRANCE D. STALDER is the Associate Vice President for Finance and
Management at SUNY Cortland. Mr. Stalder is a member of various community
organizations and serves on the Village of Homer Planning Board, the Board of
Trustees of the Cortland YMCA and is a member of the Cortland Rotary Club.
HARVEY KAUFMAN retired as Superintendent of the Cortland City Schools
District in 19___and currently provides administrative consulting services in
the field of education. He was elected Chairman of the Board of Trustees of the
Bank in June of 1997. He is a former Cortland City Police Commissioner, past
president of the Cortland County Chamber of Commerce, past president of the New
York State Association of Small City School Districts, and was a member of the
New York State Assembly Task Force and Regents Action Plan. Mr. Kaufman is also
currently the Chairman of the J.M. Murray Center and Cortland Memorial Hospital
Services, a for profit affiliate of Cortland Memorial Hospital.
JOSEPH H. COMPAGNI is President of Economy Paving Co., Inc., which
constructs highways and bridges in New York State. He is currently a director of
the New York State Associated General Contractors and has been a Director of the
Cortland Memorial Hospital, J.M. Murray Center, Cortland Family Health Network,
Cortland Rotary Club and Cortland YMCA.
DONALD P. REED is the principal of Reed's Seeds, a business which sells
crop seeds, farm seeds, farm chemicals and fertilizer. He is also Chairman of
the Board of Dryden Mutual Insurance Company.
ROLAND FRAGNOLI is the President of the Homer Men & Boys clothing stores,
a local retailer with which he has been associated for 50 years. He is a member
of various service and community clubs and serves on the Tompkins Cortland
Community College Foundation Board.
PATRICK J. HAYES, M.D. is a practicing physician in Cortland. He is a past
president of the Cortland Memorial Hospital Medical Staff and currently serves
as Chief of Staff of Cortland Health Center. Dr. Hayes is a member of the
Board of the American Lung Association of Central New York, Inc.
ROBERT S. KASHDIN, C.P.A. has been a practicing certified public
accountant for over 30 years and is the present managing partner of the CPA firm
of Port, Kashdin and McSherry located in Cortland. Mr. Kashdin is a member in
numerous community and professional organizations including past chairman of the
New York State Society of CPA's Agri Business Committee and District Treasurer
of Rotary District 7170. He is a former Board member of the Jewish Homes of
Central New York and the United Way of Cortland County.
Executive Officers Who Are Not Directors
STEVEN A. COVERT joined the Bank in June 1998. From August 1995 to June
1998, he was Executive Vice President and Chief Financial Officer of Success
Bancshares, Inc., a bank holding company in Chicago, Illinois. He was Senior
Vice President and Chief Financial Officer of Ithaca Bancorp, Inc., a savings
and loan holding company in Ithaca, New York, from July 1993 to December 1994
and was Vice President and Chief Financial Officer of Skaneateles Bancorp, Inc.,
a bank holding company in Skaneateles, New York, from January 1991 to July 1993.
Mr. Covert is a certified public accountant and prior to joining the banking
industry, he was employed by KPMG Peat Marwick LLP as an auditor. Mr. Covert has
been a member of various community organizations including the United Way and an
organization that provides food for the homeless.
KERRY D. MEEKER joined the Bank in 1996 as Senior Vice President and
Senior Loan Officer. Prior to joining the Bank, he held the position of Vice
President and Chief Loan Officer of Oneida Savings Bank since 1989. He
previously served as a Vice President and Commercial Loan Officer of Marine
Midland Bank and as a Senior Financial Analyst at Bankers Trust Company. He is a
member of the Rotary Club of Cortland; has served as President of the Greater
Oneida Chamber of Commerce, Inc.; Treasurer of the Oneida Improvement Committee,
Inc.; President of the Oneidas Club; President of the Sherrill - Kenwood
Community Chest, Inc.; and is a past member of the Rotary Club of Oneida.
F. MICHAEL STAPLETON joined the Bank in June 1998. From February 1986
through April 1998, Mr. Stapleton was with OnBank and Trust Co., rising to the
position of Regional President. He then continued with Manufacturers and Traders
Trust Company after it acquired OnBank. He is the Chairman of the Loretto
Foundation, which provides care for the elderly, and is a Director of Meals on
Wheels of Syracuse and the Mercy Health and Rehabilitation Center. Mr. Stapleton
is also the Chairman of the Cayuga County Economic Development Council, a
Director of the Industrial Development Foundation of Auburn and Cayuga County,
and a member of the Auburn Industrial Development Authority, all of which are
involved in fostering economic development in central New York.
EXHIBIT IV-6
Cortland Savings Bank
Pro Forma Regulatory Capital Ratios
Pro Forma Based Upon Net Proceeds at March 31, 1998
-----------------------------------------------------------------------------
5,206,250 Shares 6,125,000 Shares 7,043,750 Shares 8,100,312 Shares Sold
Historical at Sold (Minimum of Sold (Midpoint of Sold (Maximum of (15% Above Maximum
March 31, 1998 Valuation Range) Valuation Range) Valuation Range) of Valuation Range)
--------------- --------------- ---------------- --------------- ---------------------
Percent Percent Percent Percent Percent
of of of of of
Applicable Applicable Applicable Applicable Applicable
Amount Assets Amount Assets(2) Amount Assets(2) Amount Assets(2) Amount Assets(2)
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
(Dollars in thousands)
GAAP Capital(1) .... $31,394 13.51% $50,584 19.77% $54,125 20.81% $57,666 21.81% $61,694 22.91%
======= ===== ======= ===== ======= ===== ======= ===== ======= =====
Tier I Leverage:
Capital Level(2) ... $30,662 21.94% $49,852 34.51% $53,393 36.74% $56,934 38.95% $60,962 41.43%
Requirement(3) ..... 5,590 4.00% 5,778 4.00% 5,812 4.00% $ 5,847 4.00% 5,886 4.00%
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Excess ............. 25,072 17.94% $44,074 30.51% $47,581 32.74% $51,087 34.95% $55,076 37.43%
======= ===== ======= ===== ======= ===== ======= ===== ======= =====
Tier I Risk-based:
Capital Level(2) ... $32,408 23.19% $51,598 35.72% $55,139 37.95% $58,680 40.15% $62,708 42.62%
Requirement(3) ..... 11,181 8.00% 11,556 8.00% 11,625 8.00% 11,693 8.00% 11,772 8.00%
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Excess ............. $21,227 15.19% $40,042 27.72% $43,514 29.95% $46,986 32.15% $50,936 34.62%
======= ===== ======= ===== ======= ===== ======= ===== ======= =====
Total Risk-based:(4)
Capital level(2) ... $30,662 13.26% $49,852 19.58% $53,393 20.62% $56,934 21.63% $60,962 22.74%
Requirement(3) ..... 9,246 4.00% 10,184 4.00% 10,355 4.00% 10,527 4.00% 10,722 4.00%
------- ----- ------- ----- ------- ----- ------- ----- ------- -----
Excess ............. $21,416 9.26% $39,668 15.58% $43,038 16.62% $46,407 17.63% $50,240 18.74%
======= ===== ======= ===== ======= ===== ======= ===== ======= =====
(1) Capital under generally accepted accounting principles includes the
net unrealized gain/loss, if any on available-for-sale securities, which
is not recognized as capital under the FDIC capital ratio rules. Total
risk-based capital includes the allowance for loan losses. See "Regulation
- Banking Regulation - Capital Requirements."
(2) Pro forma capital levels assume that one-half of the net proceeds from
the sale of the Common Stock is contributed by the Company to the Bank in
exchange for the stock of the Bank, but only after deducting from the
amount contributed to the Bank (i) the full amount of Common Stock
expected to be purchased by the ESOP and (ii) an additional amount
representing 4% of the Common Stock to be issued in the Conversion,
including Common Stock contributed to the Foundation, on account of the
anticipated PRRP.
(3) In order to be classified as "well-capitalized," the Bank must, in
addition to other requirements, have a Tier I risk-based capital ratio of
at least 6.00%, a total risk-based capital ratio of at least 10.00% and a
Tier I leverage ratio of at least 5.00%. See "Regulation Banking
Regulation - Capital Requirements" and " - Enforcement."
(4) Pro forma risk-based capital data assumes the net proceeds are
invested in assets that carry a risk-weighting equal to 20%, based on the
assumption that the net proceeds will initially be invested in government
and corporate debt securities.
EXHIBIT IV-7
PRO FORMA ANALYSIS SHEET
Cortland Savings Bank
Prices as of June 5, 1998
BIF-Insured
Peer Group New York Companies Institutions
Subject @ -------------------------- --------------------- --------------
Price Multiple Symbol Midpoint Mean Median Mean Median Mean
- -------------- ------ -------- ---- ------ ---- ------ ----
Price/Reported Earnings Multiple = P/E 46.08x 21.98x 21.79x 21.46x 21.04x 18.56x
Price/Core Earnings Multiple = P/CE 18.75x 22.48x 22.53x 22.15x 22.24x 19.53x
Price/Book Ratio = P/B 74.49% 131.31% 126.56% 161.11% 151.26% 193.05%
Price/Tangible Book Ratio = P/TB 74.49% 131.68% 126.56% 169.65% 152.14% 191.24%
Price/Assets Ratio = P/A 21.93% 23.87% 26.60% 21.52% 18.49% 20.50%
Valuation Parameters
Pre-Conv. Reported Earnings (Y) $154,000
Pre-Conversion Core Earnings $2,130,000
Pre-Conversion Book Value (B) $31,394,000
Pre-Conv. Tang. Book Value (B) $31,394,000
Pre-Conversion Assets (A) $232,388,000
Reinvestment Rate (2)(R) 3.29%
Est. Conversion Expenses (3)(X) 2.86%
Tax rate (TAX) 39.00%
ESOP Stock Purchases (E) 8.00% (5)
Cost of ESOP Borrowings (S) 0.00% (4)
ESOP Amortization (T) 15.00 years
RRP Amount (M) 4.00%
RRP Vesting (N) 5.00 years (5)
Foundation (F) 2.00%
Tax Benefit (Z) 477,750
Percentage Sold (PCT) 100.00%
Calculation of Pro Forma Value After Conversion
1. V = P/E* (Y) V = $69,115,743
------------------------------------------------------------
1 - P/E * PCT * ((1-X-E-M-F) * R-(1-TAX)* ET - (1-TAX) * M/N)
2. V = P/B * (B+Z) V = $62,764,487
--------------------------
1 - P/B * PCT * (1-X-E-M-F)
3. V = P/A * (A+Z) V = $62,514,463
--------------------------
1 - P/A * PCT * (1-X-E-M-F)
Shares Aggregate
Shares Sold to Price Per Gross Offering Issued To Total Shares Market Value
Conclusion Public Share Proceeds Foundation Issued of Stock Issued
- ---------- ------ ----- -------- ---------- ------ ---------------
Minimum 5,206,250 10.00 $52,062,500 104,125 5,310,375 53,103,750
Midpoint 6,125,000 10.00 61,250,000 122,500 6,247,500 62,475,000
Maximum 7,043,750 10.00 70,437,500 140,875 7,184,625 71,846,250
Supermaximum 8,100,313 10.00 81,003,125 162,006 8,262,319 82,623,190
- ----------
(1) Pricing ratios shown reflect the midpoint value.
(2) Net return reflects a reinvestment rate of 5.39 percent, and a tax rate of
39.00 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 15 years and 5 years, respectively;
amortization expenses tax effected at 39.00 percent.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Cortland Savings Bank
At the Minimum
1. Offering Proceeds $52,062,500
Less: Estimated Offering Expenses 1,750,000
---------
Net Conversion Proceeds $50,312,500
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $50,312,500
Less: Non-Cash Stock Purchases(1) 6,372,450
---------
Net Proceeds Reinvested $43,940,050
Estimated net incremental rate of return 3.29%
----
Earnings Increase $ 1,444,705
Less: Estimated cost of ESOP borrowings(2) 0
Less: Amortization of ESOP borrowings(3) 172,764
Less: Recognition Plan Vesting(4) 259,146
-------
Net Earnings Increase $ 1,012,794
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
------------ ---------- -----------
12 Months ended March 31, 1998 (reported) $ 154,000 $1,012,794 $ 1,166,794
l2 Months ended March 31, 1998 (core) $ 2,130,000 $1,012,794 $ 3,142,794
Before Net Cash Tax Benefit (5) After
4. Pro Forma Net Worth Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ------------
March 31, 1998 $ 31,394,000 $43,940,050 $ 406,088 $75,740,138
March 31, 1998 (Tangible) $ 31,394,000 $43,940,050 $ 406,088 $75,740,138
Before Net Cash Tax Benefit (5) After
5. Pro Forma Assets Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31, 1998 $232,388,000 $43,940,050 $ 406,088 $276,734,138
(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 15 years, amortization expense is
tax-effected at a 40.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
40.00 percent.
(5) Reflects tax benefit of stock contribution to the Foundation.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Cortland Savings Bank
At the Midpoint
1. Offering Proceeds $61,250,000
Less: Estimated Offering Expenses 1,750,000
-----------
Net Conversion Proceeds $59,500,000
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $59,500,000
Less: Non-Cash Stock Purchases(1) 7,497,000
-----------
Net Proceeds Reinvested $52,003,000
Estimated net incremental rate of return 3.29%
-----------
Earnings Increase $ 1,709,807
Less: Estimated cost of ESOP borrowings(2) 0
Less: Amortization of ESOP borrowings(3) 203,252
Less: Recogntion Plan Vesting(4) 304,878
-----------
Net Earnings Increase $ 1,201,677
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
------------ ---------- -----------
l2 Months ended March 31, 1998 (reported) $ 154,000 $1,201,677 $ 1,355,677
l2 Months ended March 31, 1998 (core) $ 2,130,000 $1,201,677 $ 3,331,677
Before Net Cash Tax Benefit(5) After
4. Pro Forma Net Worth Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31, 1998 $ 31,394,000 $52,003,000 $ 477,750 $83,874,750
March 31, 1998 (Tangible) $ 31,394,000 $52,003,000 $ 477,750 $83,874,750
Before Net Cash Tax Benefit(5) After
5. Pro Forma Assets Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31, 1998 $232,388,000 $52,003,000 $ 477,750 $284,868,750
(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 15 years, amortization expense is
tax-effected at a 40.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
40.00 percent.
(5) Reflects tax benefit of stock contribution to the Foundation.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Cortland Savings Bank
At the Maximum
1. Offering Proceeds $ 70,437,500
Less: Estimated Offering Expenses 1,750,000
---------
Net Conversion Proceeds $ 68,687,500
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $ 68,687,500
Less: Non-Cash Stock Purchases(1) 8,621,550
---------
Net Proceeds Reinvested $ 60,065,950
Estimated net incremental rate of return 3.29%
----
Earnings Increase $ 1,974,908
Less: Estimated cost of ESOP borrowings(2) 0
Less: Amortization of ESOP borrowings(3) 233,740
Less: Recognition Plan Vesting(4) 350,610
-------
Net Earnings Increase $ 1,390,559
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended March 31, 1998 (reported) $ 154,000 $1,390,559 $ 1,544,559
12 Months ended March 31, 1998 (core) $ 2,130,000 $1,390,559 $ 3,520,559
Before Net Cash Tax Benefit(5) After
4. Pro Forma Net Worth Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31, 1998 $ 31,394,000 $60,065,950 $ 549,413 $ 92,009,363
March 31, 1998 (Tangible) $ 31,394,000 $60,065,950 $ 549,413 $ 92,009,363
Before Net Cash Tax Benefit(5) After
5. Pro Forma Assets Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31, 1998 $232,388,000 $60,065,950 $549,413 $293,003,363
(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 15 years, amortization expense is
tax-effected at a 40.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
40.00 percent.
(5) Reflects tax benefit of stock contribution to the Foundation.
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Cortland Savings Bank
At the Supermaximum Value
1. Offering Proceeds $81,003,125
Less: Estimated Offering Expenses 1,837,000
---------
Net Conversion Proceeds $79,166,125
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $79,166,125
Less: Non-Cash Stock Purchases(1) 9,914,783
---------
Net Proceeds Reinvested $69,251,342
Estimated net incremental rate of return 3.29%
-----
Earnings Increase $2,276,915
Less: Estimated cost of ESOP borrowings(2) 0
Less: Amortization of ESOP borrowings(3) 268,801
Less: Recognition Plan Vesting(4) 403,201
-------
Net Earnings Increase $1,604,913
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
---------- -------- ----------
12 Months ended March 31, 1998 (reported) $154,000 $1,604,913 $1,758,913
12 Months ended March 31, 1998 (core) $2,130,000 $1,604,913 $3,734,913
Before Net Cash Tax Benefit(5) After
4. Pro Forma Net Worth Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31,1998 $31,394,000 $69,251,342 $631,824 $101,277,167
March 31,1998 (Tangible) $31,394,000 $69,251,342 $631,824 $101,277,167
Before Net Cash Tax Benefit(5) After
5. Pro Forma Assets Conversion Proceeds Of Contribution Conversion
---------- -------- --------------- ----------
March 31,1998 $232,388,000 $69,251,342 $631,824 $302,271,167
(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 15 years, amortization expense is
tax-effected at a 40.00 percent rate.
(4) MRP is amortized over 5 years, and amortization expense is tax effected at
40.00 percent.
(5) Reflects tax benefit of stock contribution to the Foundation.
RP FINANCIAL, LC.
- ---------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
EXHIBIT IV-9
Cortland Savings Bank
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
AHCI Ambanc Holding Co., Inc. of NY 2,554 -783 266 0 2,037 4,258 0.48
CATB Catskill Fin. Corp. of NY 3,828 -66 22 0 3,784 4,461 0.85
DCBI Delphos Citizens Bancorp of OH 1,726 0 0 0 1,726 1,904 0.91
ESBK Elmira Svgs Bank (The) of NY 1,013 84 -29 0 1,068 727 1.47
GOSB GSB Financial Corp. of NY 873 -71 24 0 826 2,248 0.37
PEEK Peekskill Fin. Corp. of NY 1,906 64 -22 0 1,948 3,017 0.65
PSFC Peoples Sidney Fin. Corp of OH 1,268 0 0 0 1,268 1,785 0.71
SFED SFS Bancorp of Schenectady NY 1,113 -56 19 0 1,076 1,208 0.89
SKAN Skaneateles Bancorp Inc of NY 1,607 -52 18 0 1,573 1,440 1.09
WEHO Westwood Hmstd Fin Corp of OH(1) 883 778 -265 0 1,396 2,843 0.49
(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.
EXHIBIT V-1
RP Financial, LC.
Firm Qualifications Statement
RP FINANCIAL, LC.
- --------------------------------------
Financial Services Industry Consultants 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)
- --------------------------------------------------------------------------------
Washington Headquarters
Rosslyn Center
1700 North Moore Street, Suite 2210 Telephone: (703) 528-1700
Arlington, VA 22209 Fax No.: (703) 528-1788