<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON DECEMBER 31, 1997
REGISTRATION NO. 333-42151
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 1
TO
FORM SB-2
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
------------------------
BOC FINANCIAL CORP.
(Name of small business issuer in its charter)
<TABLE>
<S> <C> <C>
NORTH CAROLINA 6712 56-6511744
(State or other jurisdiction (Primary Standard Industrial (I.R.S. Employer
of incorporation or organization) Classification Code Number) Identification No.)
</TABLE>
107 SOUTH CENTRAL AVENUE
LANDIS, NORTH CAROLINA 28088
(704) 857-7277
(Address and telephone number
of principal executive offices)
------------------------
STEPHEN R. TALBERT
CHIEF EXECUTIVE OFFICER
BOC FINANCIAL CORP.
107 SOUTH CENTRAL AVENUE
LANDIS, NORTH CAROLINA 28088
(704) 857-7277
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
COPY TO:
ANTHONY GAETA, JR.
BRIAN T. ATKINSON
MOORE & VAN ALLEN, PLLC
100 NORTH TRYON STREET, FLOOR 47
CHARLOTTE, NORTH CAROLINA
28202-4003
------------------------
APPROXIMATE DATE OF PROPOSED SALE TO THE PUBLIC: To commence as soon as
practicable after this Registration Statement becomes effective.
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<PAGE>
PART II: INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 27. EXHIBITS.
The exhibits filed as a part of this registration statement are as follows:
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- ----------------------------------------------------------------------------------------------------------
<C> <S>
1.1 Engagement letter dated December 12, 1997 by and between Landis Savings Bank, SSB and
William R. Hough & Company**
1.2 Form of Sales Agency Agreement by and between BOC Financial Corp. and William R. Hough & Company*
2 Plan of Conversion of Landis Savings Bank, SSB**
3.1 Articles of Incorporation of BOC Financial Corp.**
3.2 Bylaws of BOC Financial Corp.**
4 Form of stock certificate of BOC Financial Corp.*
5 Opinion of Moore & Van Allen, PLLC regarding legality of the Common Stock**
8 Opinion of Moore & Van Allen, PLLC regarding certain tax matters**
10.1 Letter agreement dated September 29, 1997 regarding conversion advice and record keeping by and between
Landis Savings Bank, SSB and The Meritas Group, Inc.**
10.2 Letter agreement dated September 29, 1997 regarding appraisal and business planning services by and
between Landis Savings Bank, SSB and The Meritas Group, Inc.**
10.3 Form of BOC Financial Corp. Employee Stock Ownership Plan and Trust**
10.4 Form of BOC Financial Corp. 1998 Management Recognition Plan**
10.5 Form of BOC Financial Corp. 1998 Nonstatutory Stock Option Plan**
10.6 Form of BOC Financial Corp. 1998 Incentive Stock Option Plan**
10.7 Form of Employment Agreement by and between Landis Savings Bank, Inc., SSB and
Stephen R. Talbert**
10.8 Letter of Intent, dated December 2, 1997, between Interstate Combined Ventures and Landis Savings Bank,
SSB**
21 Subsidiaries of BOC Financial Corp.*
23.1 Consent of Dixon Odom PLLC**
23.2 Consent of The Meritas Group, Inc.**
23.3 Consent of Moore & Van Allen, PLLC (included with Exhibit No. 5)**
24 Power of Attorney (included in the Signature Page)**
27 Financial Data Schedule**
99.1 Appraisal Report of The Meritas Group, Inc.
99.2 Form of Stock Order Form**
99.3 Form of Proxy Statement of Landis Savings Bank, SSB**
</TABLE>
- ---------------
* To be filed by amendment.
** Previously filed.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the
Registrant has duly caused this Amendment to its Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Charlotte, State of North Carolina, on December 31, 1997.
BOC FINANCIAL CORP.
By: /s/______STEPHEN R. TALBERT________
STEPHEN R. TALBERT
PRESIDENT AND CHIEF EXECUTIVE OFFICER
In accordance with the requirements of the Securities act of 1933, this
Registration Statement was signed by the following persons in the capacities and
on the dates stated:
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- ------------------------------------------------------ ------------------------------------------- ------------------
<S> <C> <C>
/s/STEPHEN R. TALBERT President, Chief Executive Officer, December 31, 1997
--------------------- and Director
STEPHEN R. TALBERT
/s/THOMAS P. CORRIHER* Chairman, Vice President, December 31, 1997
---------------------- and Director
THOMAS P. CORRIHER
/s/HENRY H. LAND* Secretary, Treasurer and Director December 31, 1997
----------------
HENRY H. LAND
/s/JOHN A. DRYE* Director December 31, 1997
---------------
JOHN A. DRYE
/s/SUSAN LINN NORVELL* Director December 31, 1997
---------------------
SUSAN LINN NORVELL
/s/LYNNE SCOTT SAFRIT* Director December 31, 1997
---------------------
LYNNE SCOTT SAFRIT
/s/LISA B. ASHLEY* Chief Financial Officer December 31, 1997
-----------------
LISA B. ASHLEY (Principal Accounting Officer)
</TABLE>
- -------------------------
*By: /s/ Stephen R. Talbert
----------------------
Attorney-in-Fact
<PAGE>
Exhibit 99.1
Landis Savings Bank, SSB
Landis, North Carolina
Conversion Valuation Report
As of December 3, 1997
Prepared by:
The Meritas Group
1829 East Franklin Street, Suite 600
Chapel Hill, North Carolina 27514
919-968-9500
<PAGE>
[Letterhead for The Meritas Group]
December 8, 1997
Board of Directors
Landis Savings Bank
107 South Central Avenue
Landis, North Carolina 28088
Dear Ladies and Gentleman:
The Meritas Group, Inc. ("Meritas") hereby provides an independent
appraisal of the estimated pro forma market value of Landis Savings Bank, SSB
("Landis Savings" or "the Savings Bank"). Landis Savings will convert from a
North Carolina-chartered mutual savings bank to a North Carolina-chartered stock
savings bank ("the Conversion"). The appraisal of Landis Savings was prepared
and is furnished pursuant to the requirements of 4 NCAC 16G.0717 of the North
Carolina Savings Institution Division (hereafter referred to as "the NC
Administrator") and FDIC's regulations and valuation guidelines covering the
conversion of mutual thrift institutions to stockholder-owned status.
The Meritas Group, Inc. ("Meritas") is a financial consulting and
valuation firm that specializes in the thrift and community banking industries.
The background and experience of the principals of The Meritas Group are
provided in Exhibit I. We believe that, except for the fees we will receive for
preparing the appraisal, assisting with the business plan, and providing
administrative assistance with the conversion, we are independent of Landis
Savings.
In preparing our appraisal, we have reviewed the Savings Bank's
Application to Convert from a Mutual Savings Bank to a Stock Savings Bank with
the NC Administrator, including the Form SB-2 filed with the SEC; we have
conducted an analysis of Landis Savings which has included discussions with the
Savings Bank's management, with Dixon, Odom & Co., L.L.P., the Savings Bank's
independent auditors, and with Moore & Van Allen, PLLC, the Savings Bank's
conversion counsel. We have also considered financial and other information from
regulatory agencies, other financial institutions, and other public sources, as
appropriate. While we believe this information to be reliable, we cannot
guarantee its accuracy or completeness.
<PAGE>
Board of Directors
Landis Savings Bank, SSB
December 8, 1997
Page 2
In formulating our appraisal, we have relied upon the truthfulness,
accuracy, and completeness of all documents the Savings Bank has furnished us.
We have not independently verified the financial statements and other
information provided to us by the Savings Bank, nor have we valued independently
the assets or liabilities of the Savings Bank. Our valuation considers Landis
Savings only as a going concern and should not be considered as an indication of
the liquidation value of the Savings Bank.
Ultimately, the value of any business is the price at which a willing
buyer and a willing seller, each with access to relevant information and neither
being under a compulsion to buy or sell, would transact. To estimate the pro
forma market value of Landis Savings, our analysis focused on the application of
three valuation procedures that are described in our report. In applying these
procedures, we have reviewed, among other factors, the economic make-up of the
Savings Bank's primary market area, the Savings Bank's financial performance and
condition in relation to publicly-traded institutions that are deemed closely
comparable to the Savings Bank, the conditions of securities markets in general,
and the market for thrift institution common stocks in particular. Our analysis
provides an estimation of the pro forma market value of Landis Savings based on
the valuation methods applied and the assumptions outlined in our report.
It is our opinion that as of December 3, 1997, the pro forma market value
of Landis Savings was $7,000,000. The allowable range of value of the Savings
Bank was from $5,950,000 (595,000 shares at $10 per share) to $8,050,000
(805,000 shares at $10 per share), based on a range of 15% above and below the
valuation midpoint. The supermaximum was $9,257,500 (925,750 shares at $10 per
share).
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of BOC
Financial Corp.'s common stock.
The valuation will be updated as appropriate. These updates will consider,
among other factors, any developments or changes in the Savings Bank's financial
performance and condition, management policies, and conditions in the equity
markets for savings institutions' shares.
<PAGE>
Board of Directors
Landis Savings Bank, SSB
December 8, 1997
Page 3
Should any such new developments or changes be material, in our opinion, to the
valuation of the Savings Bank's shares, appropriate adjustments to the estimated
pro forma market value will be made. The reasons for any such adjustments will
be disclosed in the related valuation update.
Very Truly Yours,
The Meritas Group, Inc.
By:
Karen L. Young
Senior Vice President
<PAGE>
Table of Contents
Landis Savings Bank, SSB
Landis, North Carolina Publishing Co.
Section Page
- ------- ----
Section I. Financial Characteristics of Landis Savings Bank, SSB
Introduction 7
Description of Landis Savings 7
Market Area 8
Regulation 8
Strategic Direction of the Savings Bank 9
Asset Composition 9
Deposit Composition 10
Financial Condition of Landis Savings 10
Balance Sheet Trends and Growth 10
Income and Expense Trends 11
Asset/Liability Management 12
Yields and Costs 13
Regulatory Capital Requirements 14
Lending Activities 14
Delinquencies and Non-Performing Assets 16
Investment Activities 16
Deposits 17
Borrowed Funds 17
Subsidiaries 18
Property and Equipment 18
Officers and Directors 18
Employees of Landis Savings Bank 19
Section II. Analysis of Primary Market Area
Introduction 20
Primary Service Area 21
Construction Activity 22
Unemployment Trends 23
Competition 23
North Carolina Bank and Merger Activities 23
Trends in Market Interest Rates 23
<PAGE>
Table of Contents
(Continued)
Landis Savings Bank, SSB
Landis, North Carolina Publishing Co.
Section Page
- ------- ----
Section III. Selection and Analysis of Comparative Group
Introduction 25
Review of the Comparative Companies 26
Comparison of Landis Savings to the Comparative Group Aggregates 29
Conclusions about Comparative Analysis 30
Future of Landis Savings 30
Section IV. Correlation of Market Value 35
Introduction 35
Financial Condition 35
Earnings Base and Profitability 36
Growth and Predictability of Earnings 36
Size and Growth Potential 37
Market Area 37
Management 37
Dividend Payments 38
Liquidity 38
Marketing of the Issue 39
Summary of Adjustments 41
Valuation Method 42
Valuation Conclusion 43
<PAGE>
Section I. Financial Characteristics of Landis Savings Bank, SSB
Introduction
Description of Landis Savings Bank
Landis Savings Bank ("Landis Savings" or the "Savings Bank") is a North
Carolina-chartered mutual savings bank headquartered in Landis, North Carolina.
The Savings Bank was chartered by the State of North Carolina in 1913 and
operated as a state savings and loan association until 1986. Prior to 1986,
Landis Savings was insured by the Financial Institutions Assurance Corporation,
a state-chartered deposit insurance company. In 1986, the Savings Bank received
federal insurance of its deposit accounts, when it converted to a federally
chartered savings and loan association under the name Landis Home Federal
Savings and Loan Association. In 1993, the Savings Bank converted to a North
Carolina-chartered savings bank at which time it adopted its present name of
Landis Savings Bank, SSB.
In September 1997, the Board of Directors adopted a Plan of Conversion,
providing for both the conversion of the Savings Bank from mutual to stock form
and conversion to a state commercial bank charter. In connection with the
conversion, Landis Savings will form a parent holding company to be known as BOC
Financial Corp. ("Bancorp" or the "Holding Company"). Bancorp will sell stock to
the public and invest part of the proceeds in exchange for all of the shares of
stock issued by Landis Savings. Immediately after the stock conversion, Landis
Savings will convert to a state commercial bank charter and will be renamed Bank
of the Carolinas.
Historically, the Savings Bank has operated as a traditional savings
institution, emphasizing the origination of loans secured by one-to-four family
residences and solicitation of passbook accounts and certificates of deposit. As
a small, one-office institution with six employees, the Savings Bank has been
limited in the number of products and services it can afford to offer its
customers.
Through the stock conversion and conversion to a state bank charter,
Landis Savings plans to expand its retail deposit and loan product offerings and
expand its market area through branching. Specifically, the Savings Bank plans
to build a new branch in a high growth area in nearby Cabarrus County.
Management believes that this area holds great potential for both deposit and
loan growth for the Savings Bank. To support this growth and facilitate the
Savings Bank's transition to a commercial bank charter, management plans to hire
additional commercial banking expertise to assist management in developing new
retail deposit and loan products.
As of September 30, 1997, the Savings Bank had assets of $24.234 million,
deposits of $19.701 million and retained earnings of $4.395 million,
representing 18.14% of total assets. The Savings Bank reported earnings of
$123,104 for the twelve months ended September 30, 1997 and $111,847 for the
twelve months ended December 31, 1996, and $78,161 for the nine months ending
September 30, 1997 and $66,904 for the nine months ended September 30, 1996.
7
<PAGE>
Market Area
Landis Savings' office is located in downtown Landis, North Carolina at
107 South Central Avenue in southern Rowan County. Landis (population 2,355) was
originally incorporated in 1901, along a north/south railroad route which
traverses downtown Landis. The heart of Landis' local economy was the Linn Mill,
a thread and yarn textile mill founded in 1900. With the automation and sale of
original Linn Mill to overseas interests, the Landis area has evolved into a
bedroom community for Concord and Cabarrus County. The Bank's Primary Market
Area consists of Rowan and Cabarrus Counties, and its Primary Service Area (in
which approximately 75% of its customer base reside) consists of a three-mile
radius from its downtown office.
Landis Savings plans to expand its primary market area through the
establishment of a new branch in a new business park development, named Kings
Grant Business Community ("Kings Grant"), located on Interstate-85 at Speedway
Boulevard, inside the city limits of Concord, North Carolina (Cabarrus County).
This 20 acre development proposes to house three hotels and conference center, a
regional mall, community shopping center, commercial and professional parks, and
multi-family housing. Management anticipates that the branch will be constructed
during the latter of part of 1998 and the branch will open in 1999.
A map depicting the Savings Bank's location in Landis, North Carolina and
proposed branch site in Concord, North Carolina are presented in Exhibit II.
Regulation
The Savings Bank is a member of the Federal Home Loan Bank of Atlanta
("FHLB of Atlanta") and its deposits are insured to the applicable limits by the
Savings Association Insurance Fund ("SAIF") of the Federal Deposit Insurance
Corporation ("FDIC"). Landis Savings is regulated by the FDIC and the Savings
Institutions Division of the North Carolina Department of Commerce. Following
the completion of its stock conversion, the Savings Bank plans to convert to a
commercial bank charter, at which time it will be regulated by the North
Carolina Banking Commission.
On September 30, 1996, the Deposit Insurance Funds Act of 1996 was signed
into law. The legislation included a special assessment equal to approximately
65 basis points of the assessable base of the Savings Bank as of March 31, 1996.
As a result of this legislation, Landis Savings paid its one time special
assessment of $101,141.87 on September 30, 1996.
8
<PAGE>
Strategic Direction of the Savings Bank
Landis Savings' Board of Directors has studied the strategic options
available for a small mutual thrift in a low growth market. By virtue of the
Savings Bank's small staff (six employees) and modest earnings, the Savings Bank
has historically limited the number of deposit and loan products it offers its
customers.
In 1996, the Savings Bank expanded its deposit product line with the
introduction of a money market checking account for high balance customers.
During 1998, the Savings Bank plans to introduce traditional checking accounts
in an effort to attract low cost demand accounts. The Savings Bank has also
expanded its loan product offering through the introduction of equity loans
secured by commercial real estate, as an initial step toward serving commercial
customers in their primary market area. Management plans to introduce a broader
array of deposit and loan products as the Savings Bank begins its conversion to
a community bank charter.
The Board of Directors recognized the limited opportunities for growth in
the Landis market and began exploring adjoining markets that might offer the
Savings Bank growth opportunities. Management identified the Kings Grant,
located adjacent to Interstate 85, as a candidate for a branch location. After
reviewing the area's demographics, the Board voted to purchase a branch site in
the development. The Board believes that this community with its growth to date
and prospects for future growth represents a unique opportunity for expansion.
After careful study of the Savings Bank's strategic options, the Board
concluded that a concurrent conversion to stock form of ownership and conversion
to a community bank charter would provide the Savings Bank the financial
capability and marketing tools to establish the Savings Bank as a full service,
community bank. Following the conversion to stock form and to a state-chartered,
community bank, the Savings Bank will be renamed "Bank of the Carolinas."
The Board recognizes that the investment in the branch ($1.6 million
budgeted for land and building) and the start-up costs of the branch will
adversely impact the Savings Bank's earnings over the short term. Specifically,
the Savings Bank will expand its staff for the branch and for commercial banking
expertise to develop new retail deposit and loan products. The Board believes
that Landis Savings' investment in the branch and its start-up costs are
investments in long-term growth opportunities for the Savings Bank and an
important step in its conversion to a full-service community bank.
Asset Composition
Historically, Landis Savings has been a traditional thrift institution,
principally engaged in the business of attracting deposits from the general
public and originating one-to-four family residential real estate loans and, to
a lesser extent, equity lines of credit.
At September 30, 1997, approximately 88% of the Savings Bank's net loan
portfolio were comprised of one-to-four residential real estate loans.
Otherwise, the net loan portfolio is comprised of home equity loans (6.4% of the
loan portfolio), home improvement loans (1.9%), construction loans (1.5%),
commercial real estate loans (1.5%), and loans secured by deposits
9
<PAGE>
(.3%). At September 30, the Savings Bank had $47,000 of loans delinquent 90 days
or more (accruing), which represented .19% of total assets.
At September 30, 1997, the Savings Bank's investment portfolio totaled
$5.1 million, including gross unrealized gains of $10,479. The Savings Bank's
investment portfolio consisted of United States government and agency securities
($2.6 million), Federal Funds Sold ($2.3 million), Federal Home Loan Bank Stock
($187,000) and interest-earning balances in other banks ($26,000).
Deposit Composition
At September 30, 1997, Landis Savings held approximately $19.7 million of
deposits. Approximately 43% of the Savings Bank's deposits were comprised of
demand accounts, including regular passbook accounts (20.3% of the total
deposits), and money market accounts (22.9%). Otherwise, the Savings Bank had
$11.2 million of certificates of deposits with maturities ranging less than six
months (14.7% of total deposits), six to 12 months (16.9%), and more than 12
months (25.3%). Approximately 14.6% of the Savings Bank's deposits ($2.9
million) are jumbo deposits of $100,000 or more. All jumbo deposits are retail
deposits; the Savings Bank does not solicit brokered deposits.
Financial Condition of Landis Savings Bank
Balance Sheet Trends and Growth
Exhibit II presents a summary of the audited financial statements of the
Savings Bank for the fiscal years ending December 31, 1991-1996 and nine months
ending September 30, 1997-1996. Table 1 provides Selected Financial Data for the
Savings Bank and its compound annual growth rate for the FY1991-1996 period.
Table 1
Selected Financial Data
($000)
<TABLE>
<CAPTION>
At September 30, At December 31,
--------------- ----------------------------------------------- Compound Growth
1997 1996 1996 1995 1994 1993 1992 1991 Rate
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Assets 24,234 22,470 22,661 20,094 19,084 18,917 18,734 18,085 4.1%
Investments 5,097 2,539 3,026 2,278 2,681 2,566 3,394 4,329 -6.9%
Net Loans 18,641 18,458 18,917 17,308 16,011 15,419 14,673 12,943 7.2%
Receivable
Deposits 19,701 18,077 18,322 15,846 15,045 15,098 15,137 14,837 3.7%
Borrowings 0 0 0 0 0 0 0 0 -
Equity 4,395 4,262 4,312 4,206 3,983 3,754 3,499 3,203 3.4%
</TABLE>
Source: Savings Bank's Audited Statements
10
<PAGE>
As shown, Landis Savings' deposit growth was relatively flat over the
FY1991-1995 period with deposits increasing only 1.0% annually. Through the
introduction of money market deposit accounts in 1996, the Savings Bank's
deposits increased approximately $2.5 million or 15.6%. For the nine months
ending September 30, 1997, deposits increased $1.4 million, representing a 10.0%
increase in deposits on an annualized basis. The Savings Bank's deposit growth
in 1997 is attributable solely to its money market deposit account. As a result
of the introduction of the money market deposit account, Landis Savings
experienced an aggregate 3.7% compound growth in deposits over the FY1991-1996
period, which resulted in a 4.1% growth in total assets. While Landis Savings'
investment in cash and investments declined approximately 7% over the 1991-1996
period, the Savings Bank's investments totaled $5.1 million at September 30,
1997, an increase of more than 68% from December 31, 1996. Otherwise, the
Savings Bank's investment in loans receivable have increased 7.2% annually over
the FY1991-1996 period.
Income and Expense Trends
As a result of a narrowing of its interest rate margins, Landis Savings'
level of profitability in FY1995 and FY1996 has declined, relative to the
earlier periods shown. Specifically, the Savings Bank's cost of funds has
increased with the introduction of its money market demand account, while its
yield on earning assets has declined modestly over the period.
The Savings Bank's earnings have also been impacted by several
(non-recurring) factors. During fiscal year 1996, the Savings Bank recorded a
$101,142 special SAIF assessment, which inflated the Savings Bank's non-interest
expenses for the period. During the nine-months ending September 30, 1997, the
Savings Bank adopted a Directors Retirement Plan for its Board members. As a
result of the death of a Board member, the Savings Bank incurred a $47,000
(non-recurring) expense related to the Plan benefits. Further, the Savings Bank
provided for approximately $19,000 of additional loan loss reserves to bring its
loss reserves in line with loan loss reserve formulas suggested by the FDIC
examiners.
Table 2
Selected Operating Data
($000)
Nine Months
Ended
September 30, Twelve Months Ended December 31,
------------------- --------------------------------
1997 1996 1996 1995 1994 1993 1992 1991
Total Interest Income 1,312 1,193 1,610 1,510 1,401 1,442 1507 1591
Total Interest Expense 732 609 841 723 559 574 721 970
Net Interest Income 580 584 769 787 843 868 786 620
Provision for Loan 22 4 6 1 0 0 0 2
Losses
Net Interest Income 558 580 763 786 843 868 619 786
After Provisions
Non-interest Income 4 5 8 2 -4 23 34 37
Non-interest Expense 453 488 609 509 404 442 368 363
Income before Income Tax 109 97 162 279 435 449 451 292
Income Tax Expense 31 30 50 101 168 193 164 103
Net Income before
cumulative effect of
change in accounting
principal 78 67 112 178 267 256 287 189
Cumulative effect of
change in accounting
principal 0 0 0 0 0 0 8 0
Net Income 78 67 112 178 267 256 295 189
Earnings Base, Adjusted
for Non-Recurring Items 166* -- 182 178 267 256 287 189
* Trailing 12 Months Ended 9/30/97
Source: Audited Financial Statements
11
<PAGE>
Table 3
Selected Operating Data
($000)
<TABLE>
<CAPTION>
Period Ending / At Period Ending /At
September 30, December 30,
------------------ -----------------
1997 1996 1996 1995
<S> <C> <C> <C> <C>
Performance Ratios:
Return on Average Assets 0.44% 0.42% 0.52% 0.90%
Return on Average Retained Earnings 2.37% 2.11% 2.64% 4.30%
Average Retained Earnings to Average Assets 18.61% 20.15% 19.86% 20.83%
Interest Rate Spread 2.50% 2.96% 2.84% 3.20%
Net Yield on Average Interest Earning Assets 3.37% 3.83% 3.71% 4.07%
Average Interest Earning Assets to Average 120.21% 121.84% 121.53% 123.41%
Interest-Bearing Liabilities
Ratio of Non-interest Expense to Average 2.57% 3.09% 2.85% 2.56%
Total Assets
Asset Quality Ratios:
Non-performing Assets to Total Assets 0.19% 0.04% 0.02% -
Loan Loss Reserves to Non-performing Loans 63.83% 60.00% 160.0% -
at period end
Number of:
Outstanding Loans 503 506 507 501
Deposit Accounts 1,476 1,496 1,479 1455
Full Services Offices Open 1 1 1 1
</TABLE>
Source: Offering Circular
As a result of a decline in the Savings Bank's net interest margin, Landis
Savings' return on average assets has trended downward over the FY1991-FY1996
period. For FY1996, the Savings Bank reported a 0.52% return on average assets
(0.85% return on assets, adjusted for the SAIF special dividend assessment) and
0.53% return on average assets for the twelve months ended September 30, 1997
(0.71% return on assets, adjusted for non-recurring expenses related to a
directors retirement plan resulting from the recent death of a director and a
larger loan loss provision).
Landis Savings' capital to assets ratio declined modestly over the period
from 20.8% of assets at December 31, 1995 to 18.6% at September 30, 1997,
reflecting a higher growth in assets over the period relative to capital
augmentation.
Asset/Liability Management
Over recent years, Landis Savings has measured its exposure to interest
rate risk by computing the "GAP" between the dollar volume of assets and
liabilities which are expected to reprice within similar time periods, based
upon assumptions about prepayment speeds and deposit decay. Recently, the
Savings Bank has also begun reviewing the present value of its cash flow from
assets, liabilities, and off-balance sheet assets under various interest rate
scenarios. This analysis represents the Savings Bank's net portfolio value
("NPV") under instantaneous changes in market interest rates from one to four
percent. The FHLB of Atlanta prepares these NPV analyses for Landis Savings.
Exhibit IV illustrates Landis Savings' asset/liability maturity structure,
based upon contractual maturities. On September 30, 1997, the Savings Bank
reported a one-year GAP of
12
<PAGE>
negative 27.75%. The Savings Bank's three-year and five-year cumulative GAPs
were negative 29.43% and negative 26.26%, respectively. Exhibits V and VI
provide the Savings Bank's Net Portfolio Value and Net Interest Income Analysis,
respectively, at September 30, 1997. As shown, the Savings Bank's market value
of portfolio equity would decline 8.74% (or $428,000) if interest rates were to
rise 200 basis points. Conversely, the Savings Bank's market value of portfolio
equity would increase 3.45% ($169,000) if interest rates were to fall 200 basis
points,
The Board of Directors seeks an acceptable balance between maximizing
yield potential and limiting the Savings Bank's exposure to interest rate risk.
The Savings Bank's basic strategy in managing its exposure to interest rate risk
has been to emphasize shorter-term, fixed rate mortgages and adjustable rate
mortgages. The Savings Bank has never used synthetic hedge instruments or
borrowed funds as tools to manage its interest rate risk At September 30, 1997,
the Board of Directors believed that the Savings Bank's exposure to interest
rate risk was acceptable in view of the Savings Bank's historical results from
operations and its highly capitalized position.
With the Savings Bank's conversion to a community bank charter, the
converted bank will place greater emphasis on (shorter term) consumer lending,
adjustable rate real estate loans and commercial loans. Through deposit growth
and deployment of assets with shorter terms, it is anticipated that the Savings
Bank's asset/liability maturity structure may improve over time, thereby
limiting the converted bank's exposure to interest rate risk.
Yields and Costs
Exhibit VII presents the Savings Bank's weighted average yields and costs
on interest earning assets and interest bearing liabilities for the nine months
ending September 30, 1996 and 1997 and twelve months ending December 31, 1995
and 1996.
From December 31, 1995 to 1996, the Savings Bank's yield on earning assets
has declined 4 basis points from 7.82% to 7.78%, respectively. Subsequently, the
Savings Bank's yield on earning assets has declined 17 basis points to 7.61% for
the nine months ending September 30, 1997.
From December 31, 1995 to 1996, the Savings Bank's cost of
interest-bearing liabilities increased 32 basis points from 4.62% to 4.94%,
respectively. Subsequently, the Savings Bank's cost of interest bearing
liabilities increased 17 basis points to 5.11% for the nine months ending
September 30, 1997.
As a result of the Savings Bank's yield/cost structure, Landis Savings'
interest rate spread has declined from 3.20% for fiscal year 1995 to 2.84% for
fiscal year 1996 and 2.50% for the nine months ending September 30, 1997. The
Savings Bank's interest rate spread has declined in large part because of the
pricing structure of the its money market demand account and resulting transfers
from lower cost funds to the money market account. Continued growth in new money
into the money market demand account along with the introduction of traditional
checking accounts may offset the deterioration of the Savings Bank's interest
rate spread over time.
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Over this period, the Savings Bank's ratio of interest earning assets to
interest bearing liabilities has fallen from 123.41% for fiscal year 1995 to
121.53% for fiscal year 1996 to 120.21% for the nine month period ending
September 30, 1997. Over this period, the Savings Bank's net yield on average
interest earning assets has fallen from 4.07% for fiscal year 1995 to 3.37% for
the nine months ending September 30, 1997.
Exhibit VIII provides an analysis of the dollar amount of changes in
interest income and interest expense for major components of interest-earning
assets and interest-bearing liabilities.
Regulatory Capital Requirements
Exhibit IX provides presents the historical and projected pro forma
capitalization of Landis Savings. On a pre-conversion basis, the Savings Bank
meets all of its regulatory capital requirements, with its 18% capital to assets
ratio at September 30, 1997. Through the stock conversion, Landis Savings will
raise additional capital to supplement its existing capital base and provide
financial resources for its planned expansion into Cabarrus County.
Lending Activities
Exhibit X provides an analysis of the Savings Bank's loan portfolio by
type of loan and security. At September 30, 1997, more than 88% of the Savings
Bank's net loan portfolio was comprised of single-family residential loans,
primarily located in the Savings Bank's market area. Over the period shown,
there has been a modest decline in the level of residential mortgages and a
corresponding increase in the level of home equity loans.
Exhibit XI presents a summary of the Savings Bank's loan origination
activities over the nine months ending September 30, 1996-1997 and fiscal years
ending December 30, 1995-1996. Landis Savings originates its loans for
portfolio. Applications for single family real estate loans are underwritten and
closed in accordance with the standards of the Federal Home Loan Mortgage
Corporation ("FHLMC"). While the Savings Bank underwrites its loans so that they
could be sold in the secondary market, Landis Savings originates and retains its
loans for portfolio. The Savings Bank's lending policies limit the maximum
loan-to-value ratio on mortgages secured by single-family residences to 80% of
the lesser of the appraised value or the purchase price of the real property
securing the loan. The Savings Bank will make a single family residential loan
with up to a 95% loan-to-value ratio if the customer obtains private mortgage
insurance.
Landis Savings offers residential and commercial construction loans. To
date, the majority of Savings Bank's construction loans have been for the
construction of owner-occupied, single-family dwellings in the Savings Bank's
primary market area. Generally, the construction loans are originated in
connection with the permanent loan on the property and have a term of six to 18
months. At September 30, 1997, the Savings Bank had $285,000 of construction
loans
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outstanding (virtually all was secured by single family residences),
representing 1.52% of net loan outstanding.
The Savings Bank originates commercial real estate loans, as well as a
limited amount of multi-family residential real estate loans, generally limiting
such originations to loans secured in its primary market area and to borrowers
with whom it has other loan relationships. The Savings Bank's multi-family
residential loan portfolio consists of loans secured by small apartment
buildings. The Savings Bank limits the loan-to-value ratio on multi-family
residential loans to 80%. At September 30, 1997, the Savings Bank had
approximately $205,000 of loans secured by multi-family residential property,
representing 1.09% of the loan portfolio.
The Savings Bank also originates commercial real estate loans to finance
the acquisition of small office buildings and commercial and industrial
buildings. Such loans generally range in size from $100,000 to $500,000.The
Savings Bank generally limits the loan-to-value ratio on commercial real estate
to 75%, although the loan-to-value ratio on commercial real estate loans has
been as high as 80%. At September 30, 1997, the Savings Bank had approximately
$270,000 of loans secured by commercial real estate, representing 1.44% of the
loan portfolio. Recently, the Savings Bank has introduced an equity line of
credit, secured by commercial properties. Underwriting for commercial equity
lines conform to the Savings Bank's loan underwriting guidelines for commercial
real estate loans, as outlined above.
Landis Savings offers home equity loans, where the aggregate debt
outstanding does not exceed 80% of the appraised value of the collateral
property. Such loans are offered on an adjustable rate basis, requiring monthly
payments until the loan is retired. At September 30, 1997, the Savings Bank had
approximately $1.2 million of home equity loans outstanding, representing 6.41%
of the loan portfolio.
The Savings Bank also offers home improvement loans and loans secured by
deposit accounts. At September 30, 1997, the Savings Bank's home improvement
loans totaled $358,000 (or 1.92% of the loan portfolio) and its loans on savings
accounts totaled $58,000 (0.31% of the loan portfolio).
The Savings Bank has recently begun offering automobile loans, which are
generally underwritten in amounts up to 75% of the lesser of the purchase price
of the automobile or, with respect to used automobiles, the value as published
by the National Automobile Dealers Association. The terms of most automobile
loans do not exceed 48 months. At September 30, 1997, the Savings Bank had no
automobile or unsecured consumer loans in its loan portfolio.
Exhibit XII presents the contractual maturities of the Savings Bank's loan
portfolio as of September 30, 1997. As shown, approximately $11.2 million of the
Savings Bank's loan portfolio consisted of fixed rate 1-4 family residential
loans, accounting for approximately 60% of the loan portfolio.
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Delinquencies and Non-Performing Assets
Exhibit XIII presents Landis Savings' non-performing assets at December
31, 1995 and 1996 and at September 30, 1997. At September 30, 1997, the Savings
Bank had $47,000 of accruing loans 90 days or more past due, representing 0.19%
of total assets.
Exhibit XIV provides an analysis of the Savings Bank's allowances for loan
losses. During 1997, the Savings Bank adopted an allocation of loan loss
reserves by loan category, based upon recommendations made by the Savings Bank's
FDIC examiners. As a result, the Savings Bank made a $22,000 provision for loan
losses during the nine month period ending September 30, 1997. (Exhibit XV
provides a summary of the Savings Bank's allocation of allowances for loan
losses). On September 30, 1997, loan loss provisions totaled $30,000,
representing 64% of the Savings Bank's non-performing assets.
Landis Savings has not incurred a loan loss since the Savings Bank was
incorporated in 1913.
Investment Activities
The Board of Directors has authorized management to invest in U.S.
Government and agency securities, state government obligations, municipal
securities, obligations in the FHLB, mortgage-backed securities issued by the
Federal National Mortgage Association and FHLMC, and other securities authorized
by the Administrator of the Savings Institution Division as permissible
investments. The Savings Bank's objective is to use such investments to reduce
the Savings Bank's interest rate risk, enhance its yields on assets and provide
liquidity for daily operations.
The Savings Bank's investment portfolio consists primarily of securities
issued by the US Treasury and federal and state government agency obligations.
At September 30, 1997, the Savings Bank's entire portfolio of investment
securities was classified as available for sale and amounted to $2.6 million,
including gross unrealized gains of $10,000. The Savings Bank attempts to
maintain a high degree of liquidity in its investment portfolio by choosing
those which are readily marketable. As of September 30, 1997, the estimated
weighted life of the Savings Bank investment securities portfolio was
approximately one year. In addition, the Savings Bank had invested $2.3 million
in federal funds sold, $187,000 in FHLB stock, and $26,000 in interest-bearing
balances in other banks.
Exhibit XVI sets forth the carrying value of the Savings Bank's investment
portfolio at December 31, 1995 and 1996 and at September 30, 1997. As shown, the
Savings Bank has increased its aggregate investment in liquid assets from $2.3
million at December 31, 1995 to $5.1 million at September 30, 1997. The Board
has elected to increase the Savings Bank's investment in liquid assets over this
period to support the liquidity needs of its money market demand accounts.
Exhibit XVII sets forth the scheduled maturities, carrying values, amortized
cost and average yields for the Savings Bank's investment portfolio at September
30, 1997.
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Deposits
Landis Savings attracts demand accounts and short term and intermediate
term certificates of deposits from its primary market area. As noted, the
Savings Bank introduced its money market demand account in 1996, designed to
attract high balance, low volume checking customers. The Savings Bank sets an
interest rate for its money market demand account, based upon the average
balance in the account for the month. Since the Savings Bank has a limited staff
(six employees) and limited financial resources, the Board elected to initially
offer a low-volume checking program designed to attract deposits and minimize
administrative overhead. As a result of these efforts, the Savings Bank had
attracted approximately $4.5 million of money market deposits at September 30,
1997. While the Savings Bank experienced some internal transfer of deposits into
the money market account, overall new deposits have been acquired and internal
capabilities to handle check processing has been developed. During 1998, Landis
Savings plans to add traditional checking accounts to its product line.
Exhibit XVIII sets forth the Savings Bank's deposit mix as of December 31,
1995 and 1996 and September 30, 1997. Over the period shown, the Savings Bank's
deposits have increased from $15.8 million at December 31, 1995 to $19.7 million
at September 30, 1997. Passbook deposits have declined from $5.4 million to $4.0
million, while money market demand deposits increased from $0 to $4.5 million
over the corresponding period. Otherwise, certificates of deposits have
increased from $10.5 million at December 31, 1995 to $11.2 million at September
301, 997.
On September 30, 1997, approximately 57% of the Savings Bank's deposits
were comprised of certificates of deposits, 22.9% of money market demand
deposits, and 20.3% of passbook deposits.
Exhibit XIX provides a summary of the Savings Bank's deposit flows for
fiscal years ending December 31, 1995 and 1996 and nine months ending September
30, 1996 and 1997. Exhibit XX sets forth the Savings Bank's certificates of
deposit, classified by balance and term to maturity. As shown, Landis Savings
had $2.9 million of certificates of deposits with balances of $100,000 or more,
representing 25.7% of total certificates of deposit and 14.6% of total deposits.
Borrowed Funds
As a member of the FHLB of Atlanta, Landis Savings has access to advances
from the FHLB of Atlanta. The Savings Bank has a Blanket Agreement for advances
with the FHLB under which the Savings Bank may borrow up to 75% of assets,
subject to normal collateral and underwriting requirements.
Landis Savings does not utilize borrowings as a source of funds for daily
operations of the Savings Bank and therefore has reported no outstanding
borrowings over the December 31,
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1995 through September 30, 1997 period. Following its conversion to a commercial
bank charter, the Savings Bank plans to remain a member of the FHLB of Atlanta.
Subsidiaries
Landis Savings does not currently have an active service corporation.
Property and Equipment
Landis Savings operates out of its downtown office at 107 South Central
Avenue in Landis, North Carolina. The Savings Bank purchased its 5,000 square
foot office in 1953. At September 30, 1997, the Savings Bank's net investment in
the office was $261,000. According to the 1997 tax records, the Savings Bank's
office has a tax value of $375,340, reflecting management's estimate of the
building's current market value.
Officers and Directors
Landis Savings' has six members on its Board of Directors, including the
one inside director, the President. The Board is comprised of the following
members:
o Stephen R. Talbert, 52, serves as the President, Chief Executive Office
and Director of Landis Savings. Mr. Talbert graduated from Catawba College
in 1996 with a Bachelor of Arts in Business Administration. From 1966 to
1971, Mr. Talbert served as a cost accountant with Boise Cascade Corp; Mr.
Talbert worked for First Union Bank from 1970-1971 as an accountant in the
Bank's Corporate Accounting Department. Mr. Talbert joined Landis Savings
in 1971; he was elected to the Board of Directors in 1986 and named Chief
Executive Officer in 1988.
o Thomas P. Corriher, 68, serves as Chairman of the Board and Vice President
of the Savings Bank. Mr. Corriher is retired from the Cannon Companies,
where he served as Assistant Secretary. He currently owns and operates the
Retail Camera and Hobby Shop.
o Henry H. Land, 55, serves as Secretary, Treasurer, and Director for the
Savings Bank. Since 1988, Mr. Land has been a partner in McClary, Stocks,
Smith & Land, P.A., a certified public accounting firm in Kannapolis,
North Carolina.
o John A. Drye, 33, serves as Director for the Savings Bank. Since 1991, Mr.
Drye has served as Vice President of Clay Wright Insurance Agency, Inc., a
property and casualty insurance agency in Landis, North Carolina.
o Susan Linn Norvell, 43, serves as Director for the Savings Bank. Mrs.
Norvell is currently a homemaker. From 1995 until 1997, Mrs. Norvell was
employed as a legal assistant for Edward P. Norvell, Attorney at Law.
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o Lynne Scott Safrit, 39, serves as Director for the Savings Bank. Since
October 1995, Mrs. Safrit has served as President of Castle & Cooke, Inc.
and President and Chief Executive Officer of Atlantic American Properties,
Inc. in Kannapolis, North Carolina since 1989. Both companies are involved
in commercial property development and asset management of office, office,
retail, multi-family, country club, and residential properties.
Employees of Landis Savings Bank
Landis Savings has six full-time employees (including the President) with
extensive tenure and an annual payroll of approximately $295,000 for fiscal year
1996.
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Section II. Analysis of Primary Market Area
Introduction
Landis Savings' primary market area consists of the counties of Rowan and
Cabarrus, the home of the Savings Bank's single office location (Landis, North
Carolina) and the proposed site of their de novo branch in Kings Grant Business
Community (Concord, North Carolina). Landis has historically been a textile
manufacturing town, the home of Linn Mills. Following the decline of the textile
industry during the 1980's and sale and automation of the original Linn Mill,
Landis has evolved into a bedroom community for Concord and Cabarrus County.
Located approximately three miles from Interstate 85, Landis has excellent
interstate access to Salisbury (Rowan County's seat) and Concord.
With manufacturing comprising more than 30% of Rowan County's labor force,
many of the area's largest employers are manufacturers (in Salisbury, unless
otherwise noted), including Hoechst Celanese Corp (2,000 employees), Cone Mills
(750), Fieldcrest Cannon Inc. (700), Parkdale Mills (formerly the Linn Mill with
600 employees in Landis), China Grove Textiles, Inc (470 employees in China
Grove), North Carolina Finishing (400 employees in Spencer), and Fieldcrest
Cannon Inc. (Plant 7, 360 employees). Other leading employers in the County
include Freightliner, a trucking company in Cleveland with 1,150 employees, and
the city and county governments.
Cabarrus County serves as home to more than 130 manufacturing plants,
which employ more than 30,000 workers. The largest manufacturers in the County
(in Concord, unless otherwise noted) include Fieldcrest Cannon Inc. (Plant 1 in
Kannapolis, 5,000 employees), Philip Morris USA (2,172 employees), Fieldcrest
Cannon (Plant 6, 950 employees), Shogren Hosiery Manufacturing (750), Perdue
Farms (700), Pass Seymour/Legrand Inc. (500), Fieldcrest Cannon Inc. (Plant 4 in
Kannapolis, 500 employees), Fun-Tees Inc. (500), and S & D Coffee Inc. (475).
Other leading employers in Cabarrus County include the Cabarrus Memorial
Hospital and city and county government.
In addition to the area's manufacturing base, Concord has benefited from
growth of the Interstate 85 corridor, with its access to Charlotte and its
population of more than 1.2 million. The City of Concord has actively partnered
with private industry to help attract economic growth to the area. Specifically,
Concord has been a leading force in the development of Kings Grant, where the
Savings Bank plans to open its de novo branch. Following the annexation of Kings
Grant into the City, water and sewer lines were extended to the site property;
the City purchased an adjacent airport site from Cabarrus County and completed
the $31 million regional airport in 1994. The City also undertook the
construction of a new $10 million championship public golf course adjacent to
Kings Grant, which opened in August 1997. In 1997, the City purchased 160 acres
within Kings Grant as the site for a convention center to be attached to a full
service hotel.
Kings Grant is strategically located between Charlotte and Concord,
providing for the contiguous growth of business into Cabarrus County. Many of
Charlotte's primary amenities are located near Kings Grant, including the
University of North Carolina at Charlotte, University
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Research Park, University Medical Center, Blockbuster Pavilion, and the
Charlotte Motor Speedway. Kings Grant has core property of more than 1,000
acres, located on Interstate 85 and Kings Grant Boulevard/Speedway Boulevard.
The plans for this multi-use planned development include a 1.4 million square
foot mall, a 350,000 square foot retail center, a 300 room conference center
hotel with attached convention center, commercial sites for restaurants, banks
(Landis Savings and First Citizens Bank), a 25 acre multi-family site, and two
business parks.
Primary Service Area
Given the nearby Interstate 85 access and adjoining towns of China Grove
(to the north) and Kannapolis (to the south), Landis Savings' primary service
area approximates a three-mile radius from the Savings Bank's location in
downtown Landis. Management estimates that approximately 75% of the Savings
Bank's customers reside within this three-mile radius. Further, management
anticipates that a three mile radius from the Kings Grant branch will be
representative of the Savings Bank's service area in Cabarrus County.
Exhibits XXI-XXIV present a demographic analysis of a three-mile radius
for each site (defined as the Primary Service Area, "PSA") relative to county,
state and national averages. The demographic data for these exhibits was
provided by National Decisions Systems, San Diego, California. Landis Savings'
future bank site has been included in this analysis because of the its strategic
importance in the Savings Bank's business plan. Specifically, the Kings Grant
branch site represents a significant opportunity for deposit and loan growth for
the Savings Bank. With the Savings Bank's conversion to a commercial bank
charter and name change, Landis Savings has the opportunity to expand its
deposit and loan product offering and promote itself as "Bank of the Carolinas,"
a full service community bank.
As shown in Exhibit XXI, the Kings Grant PSA has a population of
approximately 8,716 residents and 3,140 households in 1997.While the population
base is much smaller than that of Landis PSA (20,784), the Kings Grant PSA has
enjoyed a growth in population that is more than five times that of Landis.
Moreover, the area's projected growth exceeds local, state and national
averages. By the year 2002, the Kings Grant PSA is projected to have a
population of approximately 11,000 with more than 4,000 households. Importantly,
this area is comprised overwhelmingly of homeowners, with more than 90% of the
area's homes being owner-occupied, and the majority of the population consisting
of married couples with children.
The Kings Grant PSA's per capita income was $25,759 in 1997, more than 95%
higher than that of Landis ($15,592); further, the area's average household
income of $71,493 was approximately 90% above that of Landis ($37,570).
More of the Kings Grant PSA residents are employed in executive and
management positions, professional specialties, and sales, relative to the
Landis PSA. As shown in Exhibit XXII, the Landis PSA has more residents employed
in manufacturing processes, including machine operator, and precision,
production and craft.
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As shown in Exhibit XXIII, the Kings Grant PSA residents have a higher
level of education, with approximately 19% of the residents holding college
bachelor degrees and 6% holding graduate degrees. In contrast, approximately 29%
of Landis' residents hold high school diplomas and approximately 45% of the
residents have attended fewer than 12 years of public education.
Housing values also reflect the viability and strength of the local
economies. The Landis PSA has a median property value of $56,483, approximately
18% below the county average and 38% below the state average. Conversely, the
Kings Grant PSA's median property value was $137,091, which is 143% higher than
that of Landis and above the county, state and national averages.
Exhibit XXIV presents an estimate of the 1996 financial assets and
liabilities within the three-mile PSA for Landis and Kings Grant. As shown, the
Landis PSA had total financial assets of $450.72 million and financial
liabilities of $175.78 million for a population of 20,784 and 8,521 households.
On a per household basis, residents had approximately $4,000 invested in demand
accounts, $29,000 in savings and investments and $19,000 in other investments.
Looking at the Savings Bank's current product line, the Landis PSA had
approximately $94.0 million of deposits, including $28.8 million of passbook
accounts, $19.0 million of money market deposits and $46.1 million of short and
long-term certificates of deposit. At September 30, 1996, the Savings Bank
reported total deposits of $19.7 million, representing in aggregate 20% of the
PSA deposit market share.
Looking at the financial assets and liabilities of the Kings Grant PSA,
the area reported approximately $371.2 million of financial assets and $163.4
million of financial liabilities. On a per household basis, residents had
approximately $7,800 invested in demand deposits, $73,200 in total savings and
investments, and $37,300 in other investments. Given the PSA's current financial
base and its prospects for future growth, the Board of Directors chose the Kings
Grant location for a de novo branch.
Construction Activity
Exhibit XXV provides a summary of residential and non-residential
construction activities in Rowan and Cabarrus Counties during 1991-1996 and the
seven months ending July 1997 (latest data available). As shown, Rowan County's
construction activities increased from $84.7 million ($47.5 million in
residential and $37.2 million in non-residential) in 1991 to $159.9 million
($86.0 million in residential and $73.9 million in non-residential) in 1996,
representing an 88.8% increase over the period. In contrast, Cabarrus County's
construction activities increased 138.9% over the period from $96.7 million
($55.9 million in residential and $40.8 million in non-residential) in 1991 to
$231.0 million ($148.4 million in residential and $82.6 million in
non-residential) in 1996.
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Unemployment Trends
Exhibit XXVI provides a summary of labor force and unemployment trends in
Rowan and Cabarrus Counties for 1991-1996 and from January to October 1997. Both
Rowan and Cabarrus Counties have enjoyed low levels of unemployment over the
periods shown, well below the state and national averages. In October 1997,
Rowan and Cabarrus Counties reported unemployment rates of 3.0% and 2.4%,
respectively, below both the state average (3.2%) and national average (4.4%).
Competition
Exhibit XXVII provides a summary of the financial institutions serving the
Landis, Rowan County, Concord, and Cabarrus County markets. As shown, the
Savings Bank serves the Landis market, along with First Charter National Bank
(Concord-based bank with $27.0 million of deposits in the market) and Central
Carolina Bank (Durham-based bank with $8.5 million of deposits). While Landis
Savings' aggregate deposits have increased over the period, the Savings Bank's
market share has fallen from 33.6% in 1992 to 32.4% in 1996, with the market
area's deposits growing faster than that of the Savings Bank. Over the 1992-1996
period, total deposits in Landis increased at a compound annual growth rate of
3.77%.
Deposits in Concord and Cabarrus County totaled $555.0 million and $1.1
billion, respectively. Deposits in Concord grew at an adjusted 0.81% compound
annual growth rate over the 1992-1996 period, while deposits grew 2.37% annually
in Cabarrus County. (Note: In computing growth rates in deposits, First Union's
deposits were excluded from calculations due to sharp declines--from $79.0
million to $29.1 million--in deposit balances; similar trends in First Union
deposits have been noted in other geographic areas of North Carolina; we have
concluded that these deposit fluctuations are more likely to be attributable to
home office adjustments rather than retail deposit flows).
North Carolina Bank and Thrift Merger Activities
Exhibit XXVIII provides a summary of announced thrift and bank mergers in
North Carolina since January 1, 1995. As shown, thrift acquisitions have
averaged approximately 148% of book value and 26X trailing 12 months earnings,
while banks have averaged 248% of book value and 26X earnings over the
corresponding period.
Trends in Market Interest Rates
Exhibit XXIX provides an analysis of trends in market interest rates for
90-day treasury bills, 3-year treasury notes, one and 30-year treasuries and
Prime Rate from 1994. As shown, interest rates declined through the last six
months of 1995, before longer-term yields began to increase in the spring of
1996. Short-term rates have remained stable for approximately two
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years. Intermediate and longer-term rates rose through early 1997, but have
retrenched in recent months.
In general, the Federal Reserve appears to be comfortable with the recent
tightening of interest rates and resulting leveling off of the yield curve. Flat
yield curves are generally held to be an indicator that the market expects the
economy to slow. Long term interest rates are generally accepted as an
estimation by the market of where short term rates are going in the future. The
Federal Reserve is not expected to make any material changes in interest rates
other than a possible 25 basis point adjustment during the late spring of 1998
as a step to tighten the supply of money and further deter inflation.
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Section III. Selection and Analysis of Comparative Group
Introduction
To determine the fair market value of the Savings Bank's common stock, it
is necessary to compare the financial condition, operating results and other
characteristics to a select group of comparable publicly traded thrifts.
First, Landis Savings is compared to the universe of publicly-traded
thrifts, excluding those companies who have agreed to acquired; have been
converted for less than 12 months; or who report operating losses or have
price/earnings multiples exceeding 30. Out of the approximately 400 publicly
traded thrifts listed on the New York Stock Exchange ("NYSE"), American Stock
Exchange ("AMEX") or Nasdaq, a universe of 258 met the above criteria. This
universe of publicly traded thrifts is provided in Exhibit XXX. The SNL
DataSource, provided by SNL Securities in Charlottesville, Virginia, is the
principal source of data for the analysis of publicly traded thrift companies.
From this publicly traded thrift universe, we have also identified several
supplemental groups for valuing Landis Savings, including publicly traded
thrifts in the southeast and in North Carolina. Exhibits XXXI and XXXII provide
the universe of southeastern and North Carolina publicly traded thrifts.
In valuing Landis Savings, ideally we select a group of publicly traded
thrifts in the same geographic region with similar local economies, asset sizes,
capital levels, earnings performance and asset quality. However, there are a
limited number of comparably sized companies with "liquid" stock with an active
market to provide meaningful market values. Therefore, we have selected a group
of publicly traded thrifts are listed on the NYSE, AMEX or NASDAQ. Companies,
which are the target of mergers or have announced that they are engaged in
merger negotiations are excluded from consideration. Further, we have eliminated
those companies with unusual characteristics, which tend to distort both the
median or mean calculations of pricing ratios. Specifically, we have excluded
all companies with operating losses for the last twelve months. From this
universe of thrifts, we have identified those thrifts, which have assets of less
than $100 million; have equity of 10% or more; and which converted prior to
December 3, 1996. We believe that both asset and equity size are important
considerations because they reflect both the earnings capacity of the
institution and its limited liquidity. Exhibit XXXIII provides a list of the 36
publicly traded thrifts, which met the above criteria.
From this list of 36 thrifts, companies were eliminated from consideration
for the following factors: (a) the company was a mutual holding company (one
company); (b) non-performing assets exceeded 1.5% (seven companies); (c) loans
served/assets exceeded 20% (four companies); (d) price/earnings for last twelve
months exceeded 40 X (four companies); incomplete financial data was available
for analysis (one company); and (e) loans/assets were less than 65% (twelve
companies). We believe that these selection criteria select the most comparable
companies to Landis Savings, given the Savings Bank's low level of
non-performing assets (0.19%); its traditional thrift operations as a portfolio
lender; and its heavy emphasis upon
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mortgage lending. Exhibit XXXIII identifies the companies excluded from the
comparative group based upon the criteria outlined above.
The resulting group of comparative companies (the "comparative group")
consists of 13 thrifts includes eleven mid-western companies and two
southeastern companies. These comparative companies are located in the states of
Ohio (three companies); Indiana (two); Michigan (two); Minnesota (one); Montana
(one); Kentucky (one); South Carolina (one) and North Carolina (one). Table 4
provides a description of these thrifts, their location, asset size and other
descriptive data. Exhibit XXXV. Detailed information on the Comparative Group is
presented in Exhibit XXXIV through XXXVII. Demographic data for each comparative
company is provided in Exhibit XXXVIII.
Review of the Comparative Group Companies
Three Rivers Financial Corporation, Three Rivers, Michigan ("Three Rivers"), is
the holding company for First Savings Bank, A Federal Savings Bank. It operates
four full service offices in Three Rivers (two offices), Schoolcraft, and Union.
They consider their primary market to consist of St. Joseph and Cass Counties
and the southwest portion of Kalamazoo County. Three Rivers has assets of $94.2
million and an equity to assets ratio of 13.77. Over the last twelve months,
Three Rivers reported a return on average assets of 0.90% and return on average
equity of 6.48%. Over the 1993-1996 period, Three Rivers has experienced a 5.88%
growth in assets. Loans increased 2.0% annually, while deposits declined 1.37%
annually. Borrowings have funded much of Three Rivers'growth, increasing from
$1.0 million to $9.1 million for a 109% growth.
Home Building Bancorp, Inc., Washington, Indiana ("Home Building"), is the
holding company for Home Building Savings Bank, FSB, with full service offices
in Washington and Petersburg. Home Building has total assets of $41.7 million
and a capital to assets ratio of 14.12%. For the last twelve months reported,
Home Building reported a return on assets of .75% and a return on equity of
5.76%. Over the 1993-1996 period, Home Building's assets declined .92% annually,
while its deposit base shrank 5.2% annually and its loan portfolio decreased
2.77% annually. Over this period, Home Building utilized borrowings to fund
operations with borrowings increasing from $2.5 million in 1993 to $4.1 million
in 1996. According to the Savings Bank's regulatory report at June 30, 1996,
more than 75% of the Savings Bank's portfolio consisted of single-family
mortgage loans and 17.5% of consumer loans.
Joachim Bancorp, Inc., De Soto, Missouri ("Joachim"), is the holding company for
Joachim Federal Savings and Loan Association with one full service office in De
Soto, Missouri and $35.1 million in assets; the Association was organized in
1962 and converted to stock on December 27, 1995. Joachim has an equity to
assets ratio of 28.14% and a return on average assets and average equity of
0.79% and 2.72%, respectively. Over the 1993-1996 period, the Association
reported an annual growth of 0.7% in loans and 1.6% decline in deposits
annually. Otherwise, the Association's assets grew 5.84% annually over the
period, reflecting growth through earnings and its conversion to stock form of
ownership.
26
<PAGE>
Logansport Financial Corp, Logansport, Indiana ("Logansport Financial"), is the
holding company for Logansport Savings Bank with its single office. At September
30, 1996, Logansport Financial reported total assets of $85.8 million and an
equity to assets ratio of 18.89%. For the latest twelve months reported,
Logansport Financial reported a 1.42% return on assets and 7.28% return on
equity. Logansport Financial has reported strong growth over the 1993-1996, with
growth in loans, savings and assets increasing annually 14.49%, 5.02% and 11.37%
respectively. Logansport Financial converted to stock form of ownership on June
14,1995.
Lexington B&L Financial Corp., Lexington, Montana ("Lexington B&L"), is the
holding company for B&L Bank, a federally chartered federal savings bank.
Lexington B&L operates out of one office facility with total assets of $59.2
million and an equity to assets ratio of 28.32%. For the last twelve months
reported, Lexington B&L reported a 1.02% return on assets and 3.45% return on
average equity. Over the 1993-1996 period, Lexington B&L's assets grew 6.44%
annually, while its deposits grew 0.99% and assets increased 9.11%. Lexington
B&L emphasizes the origination of single family mortgage loans for its own
portfolio. As a result, more than 88% of the Savings Bank's real estate loan
portfolio consists of residential mortgages. On June 6, 1996, Lexington B&L
converted to stock form.
Sobieski Bancorp, Inc., South Bend, Indiana ("Sobieski"), is the holding company
for Sobeski Federal Savings and Loan Association of South Bend. Sobieski
operates three full service offices in the South Bend market area. At September
30, 1997, Sobieski reported total assets of $84.3 million and an equity to
assets ratio of 14.78%. For the last twelve months reported, Sobieski reported a
return on average assets of .62% and a return on average equity of 3.88%. Over
the 1993-1996 period, Sobieski reported a 2.45% annual growth in assets, with
loans increasing 3.44% annually and deposits declining 3.28% annually. The
Savings Bank completed its conversion to stock on March 31, 1995.
South Carolina Community Bancshares, Inc., Winnsboro, South Carolina ("South
Carolina Community"), is the holding company for Community Federal Savings and
Loan Association with three offices and assets of $45.6 million. South Carolina
Community is highly capitalized with an equity to assets ratio of 26.58%. It
currently reports a 1.16% return on average assets and 3% return on average
equity. 4.38%. South Carolina Community is a traditional thrift, which
emphasizes the origination of single-family mortgage loans, reporting a negative
one-year gap of approximately 35%. Over the 1993-1996 period, South Carolina
Community has exhibited compound annual growth rates of 1.51% increase in its
loan portfolio, 2.86% decrease in deposits, and 3.46% increase in total assets.
The Association converted to stock form of ownership on July 7, 1994.
Community Investors Bancorp, Inc., Bucyrus, Ohio ("Community Investors"), is the
holding company for First Federal Savings and Loan Association of Bucyrus with
full service offices in Bucyrus, Ohio (three offices) and New Washington, Ohio
(one office). Community Investors has assets of $94.3 million and an
equity/assets ratio of 11.75%. Looking at the Association's loan portfolio,
Community Investors places it primary emphasis on single-family mortgage
lending, with more than 80% of its loan portfolio consisting of single-family
mortgages. For the last twelve months reported, Community Investors reported a
0.97% return on assets and 8.37% return on equity. Over the three years ending
December 31, 1996, Community Investors reported
27
<PAGE>
a 6.77% compound annual growth in loans; 1.14% growth in deposits; and 7.26%
growth in assets. The Association completed its stock conversion on February 7,
1995.
CKF Bancorp, Inc., Danville, Kentucky ("CFK"), is the holding company for
Central Kentucky Federal Savings Bank with one full service office and total
assets of $59.9 million. CKF reports a capital/assets ratio of 23.67% and return
on assets for the last twelve months of 1.82%. Approximately 94% of the Savings
Bank's total loan portfolio consists of real estate loans, with 83% of the real
estate loan portfolio consisting of 1-4 family mortgages. The Savings Bank has
also built a small consumer loan portfolio consisting primarily of credit card
receivables. Over the 1993-1996 period, CKF exhibited an 8.43% growth on its
loan portfolio and 6.23% growth in assets, while its deposit base shrank at a
..59% annual rate. The Savings Bank increased its utilization of borrowings over
the period from $491,000 to $1.3 million. On January 4, 1995, the Savings Bank
completed its conversion to stock form.
Mississippi View Holding Company, Little Falls, Minnesota ("Mississippi View"),
is the holding company for Community Federal Savings and Loan Association of
Little Falls. Mississippi View has one office in Little Falls with assets
totaling $68.5 million and an equity to assets ratio of 17.61%. For the last
twelve months reported, Mississippi View reported a return on assets of 1.07%
and a return on equity of 6.04%. Over the 1993-1996 period, Mississippi View has
experience annual decline in its loans and deposits of 1.28% and 1.34%, while
its assets have increased 2.51% annually. Relative to other companies in the
comparative group, Mississippi View holds the largest portfolio of consumer
loans, which represent 20.4% of its gross loan portfolio. The Association
completed its conversion to stock on March 24, 1995.
FFD Financial Corporation, Dover, Ohio ("FFD Financial"), is the holding company
for First Federal Savings Bank of Dover, Ohio. FFD is a unit bank with $88.2
million in assets and a 24.3% capital to assets ratio. FFD reported a 1.95%
return on average assets and 7.83% return on average equity for the last twelve
months reported. For fiscal years 1993-1996, FFD reported compound annual growth
rates of 5.43% in loans; a 1.32% in deposits and 11.89% in assets. On April 3,
1996, the Savings Bank completed its conversion to stock form of ownership.
Scotland Bancorp, Inc., Laurinburg, North Carolina ("Scotland"), is the holding
company for Scotland Savings Bank, SSB, which operates three full service
offices with $64.4 million of assets. Scotland reports an equity to assets ratio
of 22.6% and a return on average assets and equity of 1.89% and 6.39%,
respectively. Over the 1993-1996 period, Scotland's loan portfolio has increased
3.53% annually, while its deposits have decreased 3.69% annually and its assets
have increased 7.61% annually. The Savings Ban completed its conversion to stock
on April 1, 1996.
London Financial Corporation, London, Ohio ("London Financial"), is the holding
company for The Citizens Loan & Savings Company, which was formed in 1891 and
converted to stock on April 1, 1996. London Financial operates one office
serving Madison County Ohio and has assets of $38.2 million and an equity/assets
ratio of 19.9%. London Financial reported a return on assets of 1.03% and return
on equity of 4.96% for the last twelve months reported. Over the 1993-1996
period, London Financial exhibited a 3.16% growth in loans, a 0.48% growth in
28
<PAGE>
deposits and 5.94% growth in assets. The Association completed its conversion to
stock form on April 1, 1996.
Comparison of Landis Savings to Comparative Group Aggregates
Tables 4 and 5 provide summary information for Landis Savings Bank and the
Comparative Group. Exhibits XXXIV - XXXVIII provide more detailed information
for the comparative companies.
Balance Sheet Characteristics. Landis Savings' asset composition is
relatively similar to that of the Comparative Group's averages. The Savings Bank
has a modestly lower level of cash and investments (21.03%) relative to the
Comparative Group (23.27%) and slightly higher investment in loans (76.92%
versus 74.30%). The Savings Bank has funded operations entirely through deposit
acquisition, while the Comparative Group has a heavier reliance upon borrowed
funds, which accounted for 9.2% of assets. Otherwise, the Savings Bank reported
a slightly lower level of equity (18.14%, on a pre-conversion basis) relative to
the Comparative Group (20.34%).
Profitability. For the twelve months ending September 30, 1997, Landis
Savings reported a lower level of profitability (reported net income of ..53%
and core/adjusted net income of .71%) relative to the Comparative Group (1.18%
reported and 1.09% core). Relative to the Comparative Group, the Savings Bank
reported a lower level of interest income (7.40% versus 7.48%) and higher level
of interest expense (4.12% versus 3.73%), resulting in a lower net interest
margin (3.27% versus 3.75%). Landis Savings' loan loss provision (0.10%) was
above that of the Comparative Group (.04%), reflecting the Savings Bank's
special loan loss provision made to bring its loan loss reserves in line with
the FDIC examiners' recommendations. The Savings Bank's non-interest income
(.03%) was well below that of the Comparative Group (.20%) and its non-interest
expense (2.46%) was above the Group's (2.23%). As previously noted, the Savings
Bank's non-interest expenses increased during this period as a result of a
expense related to the Directors' Retirement Plan and recent death of a board
member. Otherwise, the Savings Bank's income tax expense (.22%) was well below
that of the Comparative Group (.65%).
For the twelve months ending September 30,1997, Landis Savings reported a
..71% return on assets, based upon an appraisal earnings base adjusted for
(non-recurring) loan loss provisions and one time charges related to the
Directors Retirement Plan. For this period, the Savings Bank reported a 3.84%
return on average equity, below the Comparative Group's average of 5.89%. The
Savings Bank's efficiency ratio (68.21%) was above that of the Comparative Group
(56.44%) and its interest rate spread (2.50% for the nine-months ending
September 30, 1997) was lower than that reported by the Comparative Group
Companies (which averaged 2.78% for the quarter ending September 30, 1997).
Historical Growth Rates. Over the 1993-1996 period, Landis Savings has
enjoyed moderate growth from its introduction of money market demand deposits.
Over the period, the Savings Bank's loans grew 7.05% annually (above the
Comparative Group average of 3.99%)
29
<PAGE>
and deposits grew 6.66% (above the Group average of -0.01%). For the eight
companies with borrowings, the Comparative Group exhibited a 48.11% growth over
the period, while the Savings Bank had no borrowed funds over the period.
Overall, the Savings Bank's assets grew 6.2% annually over the 1993-1996 period,
while the Comparative Group's assets grew 6.05% annually.
Loan Portfolio Composition. Relative to the Comparative Group, Landis
Savings has a higher investment in real estate loans (99.65% versus 90.43%).
Moreover, the Savings Bank has a higher investment in single-family mortgage
loans (97.22% of real estate loans) than the Comparative Group (90.78%). The
Savings Bank had 0.35% of its gross loans invested in non-real estate loans,
which were loans secured by savings accounts. In contrast, the Comparative Group
had 9.57% of their gross loans invested in non-real estate loans, which were
comprised of commercial loans (18.43%) and consumer loans (81.57%).
Interest Rate Sensitivity. At September 30, 1997, Landis Savings reported
a negative one year gap of 27.75%. Of the three companies which reported their
one year gap, the Group's GAP averaged negative 9.86% and its median GAP was
negative 20.34%.
Asset Quality. At September 30, 1997, Landis Savings' non-performing
assets/assets ratio was 0.19%, well below the Comparative Group's average of
0.52%. The Savings Bank's reserves to non-performing assets ratio was 63.83%,
below the Comparative Group's ratio of 82.24%. Similarly, the Savings Bank's
ratio of reserves to total loans (0.16%) was below that of the Comparative Group
(0.48%).
Conclusions about Comparative Analysis
Based upon the above financial characteristics of Landis Savings and the
Comparative Group, we believe that the Savings Bank's balance sheet compares
favorably of the Group. Given the Savings Bank's high (pre-conversion) net
worth, its excellent asset quality, and strong growth over the 1993-1996 period,
we believe that the Savings Bank has a strong financial base upon which to
build.
However, Landis Savings' profitability compares unfavorably to the
Comparative Group. As a smaller institution with assets approximately 40% that
of the Comparative Group, Landis Savings is not able to achieve the operating
efficiencies enjoyed by larger institutions. As noted, the Savings Bank has
begun expanding its product line to include money market checking and ultimately
traditional checking accounts. Such steps have increased the Savings Bank's
operating expenses and its costs of funds, as lower costs funds have transferred
to the higher yielding money market accounts. These factors have adversely
impacted the Savings Bank's profitability.
Future of Landis Savings
Upon conversion to stock form of ownership and a commercial bank charter,
Landis Savings will be a well capitalized, profitable community bank. The
Savings Bank will utilize a
30
<PAGE>
portion of its conversion proceeds to build its de novo branch in Cabarrus
County in a high growth market.
In recent years, Landis Savings has achieved moderate growth through the
introduction of money market demand deposit accounts. The Savings Bank plans to
continue its expansion of deposit products through the introduction of checking
accounts during 1998. The Savings Bank's business plan projects that it will
experience continued growth in loans, savings deposits and liquidity over the
planning period. This growth reflects the Savings Bank's efforts to expand its
product line and the opening of its de novo branch, and its resulting deposit
and loan growth. Growth from the Savings Bank's de novo branch is assumed to be
at one-half the rate of the growth rate of (non-metropolitan) de novo commercial
banks which have opened in North Carolina over the last three years.
31
<PAGE>
Table 4
Landis Savings Bank, SSB
Description of Comparative Companies
<TABLE>
<CAPTION>
Total Asset Market Current
Number MstRctQt Value Price
Company Name Ticker City State of Offices ($000 IPO Date ($M) ($)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CKF Bancorp, Inc. CKFB Danville KY 1 59,86 01/04/1995 16.71 18.500
Community Investors Bancorp, Inc. CIBI Bucyrus OH 3 94,32 02/07/1995 14.78 16.375
FFD Financial Corporation FFDF Dover OH 1 88,22 04/03/1996 27.09 18.750
Home Building Bancorp, Inc. HBBI Washington IN 2 41,74 02/08/1995 6.62 21.250
Joachim Bancorp, Inc. JOAC De Soto MO 1 35,07 12/28/1995 10.84 15.000
Lexington B&L Financial Corp. LXMO Lexington MO 1 59,23 06/06/1996 19.50 17.125
Logansport Financial Corp. LOGN Logansport IN 1 85,80 06/14/1995 19.22 15.250
London Financial Corporation LONF London OH 1 38,21 04/01/1996 8.11 15.750
Mississippi View Holding Company MIVI Little Falls MN 1 68,54 03/24/1995 12.95 17.500
Scotland Bancorp, Inc. SSB Laurinburg NC 2 64,39 04/01/1996 19.38 10.125
Sobieski Bancorp, Inc. SOBI South Bend IN 3 84,27 03/31/1995 14.81 19.000
South Carolina Community Bancshares, Inc. SCCB Winnsboro SC 3 45,61 07/07/1994 16.07 23.000
Three Rivers Financial Corp. THR Three Rivers MI 4 94,21 08/24/1995 16.68 20.250
Maximum: 4 94,32 27.09 23.000
Minimum: 1 35,07 6.62 10.125
Average: 2 66,11 15.60 17.529
Median: 1 64,39 16.07 17.500
</TABLE>
Source: SNL Securities, Charlottesville, VA
<PAGE>
Table 5
Key Financial Indicators
Landis Savings Bank, SSB and the Comparative Group
Landis Comparative Group
Savings Average Median
------- ------- ------
Balance Sheet Composition
- -------------------------
(Percent of Total Assets)
Cash and Securities 21.03% 23.27% 17.54%
Total Net Loans 76.92% 74.30% 79.79%
Real Estate 0.00% 23.00% 0.52%
Intangible Assets 0.00% 0.00% 0.02%
Total Deposits 81.29% 71.99% 67.95%
Borrowed Funds 0.00% 9.20% 11.80%
Total Equity 18.14% 20.34% 18.72%
Tangible Equity 18.14% 20.34% 18.70%
Profitability
- -------------
(Percent of Total Assets)
Interest Income 7.40% 7.48% 7.52%
Interest Expense 4.12% 3.73% 3.78%
Net Interest Margin 3.27% 3.75% 3.67%
Loan Loss Provision 0.10% 0.04% 0.02%
Total Non-Interest Income 0.03% 0.20% 0.16%
Total Non-Interest Expense 2.46% 2.23% 2.36%
Income Before Taxes 0.74% 1.83% 1.56%
Income Taxes 0.22% 0.65% 0.54%
Reported Net Income 0.53% 1.18% 1.03%
Core Income 0.71% 1.09% 0.98%
Profitability Measures
- ----------------------
Return on Average Equity (last 12 months) 3.84% 5.89% 6.22%
Efficiency Ratio (1) 68.21% 56.44% 57.26%
Interest Rate Spread (Most Recent Quarter) 2.50% 2.78% 2.89%
1993-1996 Compound Growth Rates
- -------------------------------
Loans 7.05% 3.99% 3.44%
Deposits 6.66% -0.01% -0.01%
Borrowings NA 48.11% 36.62%
Assets 6.20% 6.05% 5.94%
(1) Landis Savings' efficiency ratio adjusted to exclude non-recurring expense
for accrual for directors retirement plan related to director's death.
Source: SNL Securities, Charlottesville, VA, Meritas Calculations
<PAGE>
Table 5
Key Financial Indicators
Landis Savings Bank, SSB and the Comparative Group
Landis Comparative Group
Savings Average Median
------- ------- ------
Loan Porfolio Composition
- -------------------------
(per June 30, 1996 Regulatory Filings)
Real Estate Loans/Gross Loans 99.65% 90.43% 92.29%
Other (Non-Real Estate) Loans/Gross Loans 0.35% 9.57% 7.71%
Allowance for Loan Losses/Gross Loans 0.78% 0.59% 0.48%
Const & Development Loans/Real Estate Loans 0.00% 2.21% 1.77%
Total 1-4 Family Loans/Real Estate Loans 97.22% 90.78% 92.21%
Multifamily Loans/Real Estate Loans 1.31% 1.49% 1.62%
Other Real Estate Loans/Real Estate Loans 1.47% 5.52% 4.27%
Commercial Loans/Total Other Loans 0.00% 18.43% 14.15%
Consumer Loans/Total Other Loans 100.00% 81.57% 85.85%
Interest Rate Sensitivity
- -------------------------
One Year Gap (last reported) -27.75% -9.86% -20.34%
Cash & Securites/Assets 22.30% 23.39% 25.16%
Earning Assets/Interst Bearing Liabilities 120.21% 120.95% 120.19%
Asset Quality
- -------------
Non-performing Assets/Assets 0.19% 0.52% 0.49%
Reserves/NPA 63.83% 82.24% 73.62%
Capital Adequacy
- ----------------
Equity/Assets 18.14% 20.34% 19.90%
Tangible Capital 14.10% 17.05% 17.61%
Risk-based 38.20% 33.13% 34.22%
Source: SNL Securities, Charlottesville, VA, Meritas Calculations
<PAGE>
Section IV. Correlation of Market Value
Introduction
In order to determine the estimated pro forma market value of the Savings
Bank, certain adjustments are required to reflect the differences between Landis
Savings and the Comparative Group. In Section III, an analysis is presented of
the similarities and differences of the Savings Bank and the Comparative Group.
The following narrative presents an analysis of how these differences impact the
pro forma valuation of Landis Savings. Emphasis is placed upon the strengths and
weaknesses of the Savings Bank relative to the Comparative Group for financial
strength, quality and predictability of earnings, growth, market area,
management, dividend payments, and liquidity of issue.
The pro forma market value set forth in this appraisal report is
preliminary value for Landis Savings. Throughout the conversion process, any
changes in Landis Savings' financial condition and operating performance will be
reviewed. Additionally, any changes, which occur in the Savings Bank's financial
characteristics relative to the Comparative Group, will be analyzed. The
valuation reported herein will be updated as appropriate.
Financial Condition
The financial strength of Landis Savings is an important determinant in
the pro forma market value, because such factors as capital, asset composition,
liquidity, and funding sources impact the investment attractiveness of the
Savings Bank. Specific comparisons of Landis Savings to the Comparative Group
include:
Capital Adequacy. Landis Savings pre-conversion capital (18.14% of total
assets) is slightly below the comparative group average (20.34%) and median
(18.72%). However, the Savings Bank's level of pro forma capital will exceed
that of the Comparative Group.
Balance Sheet Composition. Landis Savings exhibits strength with its high
level of liquidity and lack of intangible assets, borrowings, or real estate
owned.
Asset Quality. Relative to the Comparative Group, Landis Savings reported
a lower level of classified assets as of September 30, 1997. Further, the
Savings Bank reported a high level of loan loss reserves to non-performing
assets.
Credit Risk. Approximately 99.7% of the Savings Bank's loan portfolio
consist of real estate loans, compared to 90.4% by the Comparative Group. Within
its real estate loan portfolio, more than 97.2 % of the portfolio consists of
single-family mortgages, well above the comparative group's average of 90.8%.
The Savings Bank had 0.3% of its loan portfolio in consumer loans, all of which
were loans secured by savings accounts. With 9.57% of its loan portfolio
invested in consumer loans, the Comparative Group had 18.43% of its consumer
loans in vested in commercial loans and 81.57% invested in consumer loans.
35
<PAGE>
Based upon the above considerations, we believe that a modest upward
adjustment is necessary for this factor.
Earnings Base and Profitability
For the twelve months ended September 30,1 997, Landis Savings reported
net income of $123,104. For valuation purposes the following adjustment have
been made to the Savings Bank's reported earnings:
Reported Earnings: $123,104
Adjustments:
Plus: Accrual for Directors Retirement Plan (6/1/97-9/30/97) 80,900
Less: 1998 Directors Retirement Accrual* (33,000)
Plus: "Excess" Loan Loss Provisions 19,400
Total Adjustments 67,300
Less Applicable Taxes @ 36% (24,228)
--------
Appraisal Earnings Base, 12 months ended September 30, 1997 $166,176
========
* "Normal" accrual for the Directors Retirement Plan
For the twelve months ended September 30, 1997, Landis Savings reported a
net income of 0.53% of average assets and 0.71% of average assets, using the
appraisal earnings base. On a pro forma basis, the Savings Bank's return on
average assets approximates 0.80%, based upon the midpoint valuation. In
contrast, the Comparative Group reported a 1.18% return on average assets, more
30% above the Savings Bank's pro forma earnings. The Comparative Group reported
a 1.09% return, based upon core earnings.
Given the above considerations, we believe that a downward adjustment is
warranted for this factor.
Growth and Predictability of Earnings
Landis Savings has exhibited moderate growth over the 1993-1996 period.
Given the Savings Bank's plans to open a de novo branch in Cabarrus County,
Landis Savings anticipates continued growth over its business-planning period.
With the Savings Bank's conversion to a commercial bank charter and plans
to expand its product offering, Landis Savings faces a transitional period in
which the Savings Bank will invest in added staff and operational capabilities
to become a full service community bank. Initially, we anticipate that Landis
Savings' profitability may be adversely impacted over the short-term as the
Savings Bank's operating expenses increase before earnings generated through
36
<PAGE>
deposit and loan growth can off-sets these costs and operating efficiencies can
be achieved. The Savings Bank's business plan projects a return on assets of
0.35% for fiscal year 1998 (de novo branch is built during second and third
quarter); 0.43% for fiscal year 1999 (de novo branch starts operations) and
0.68% for fiscal year 2000.
As a result of the above considerations, we believe that predictable
growth in the Savings Bank's earnings are not assured and we believe that a
downward adjustment is warranted for this factor.
Size and Growth Potential
The public marketplace considers the relative size of the institution and
its ability to achieve economies of scale. At September 30,1 997, the Savings
Bank had total assets of $24.2 million, roughly 37% the size of the Comparative
Group companies, which averaged $66.1 million. As noted, the Savings Bank has
achieved moderate growth over the 1993-1996 period through expansion of its
deposit products.
In our opinion, the public market place places a greater value on
franchises and the economies of scale, which can be achieved through asset size.
While Landis Savings' asset base is much smaller than the comparative companies,
the Savings Bank also has excellent prospects for future growth through the
opening of its de novo branch. On balance, we believe that a modest downward
adjustment is warranted for these factors.
Market Area
As discussed in Section II, Landis Savings' primary market area consists
of Rowan (home of its Landis office) and Cabarrus Counties (future home of its
de novo branch). In our analysis, we defined the Primary Service Area to consist
of a three-mile radius from each office location or proposed site, which serves
approximately 75% of the Savings Bank's customer base. On balance, we found that
the weaknesses of the Landis PSA (i.e., low population and household growth;
lower levels of per capita and household income; lower levels of education,
etc.) were offset by the strengths of the Kings Grant PSA in Cabarrus County.
On balance, we believe that the Savings Bank's primary market area is as
attractive as those of the comparative companies. Thus, we do not believe that
an adjustment is warranted for this factor.
Management
Landis Savings is headed by President Steve Talbert, an experienced chief
executive officer with 26 years of service with the Savings Bank. The Savings
Bank has a relatively small staff of six full time employees, including the
President.
37
<PAGE>
While we believe that the Savings Bank is well managed, we acknowledge
that Landis Savings has a limited management team with no management succession
in place. Given the Savings Bank's plans for growth and product expansion,
Landis Savings' business plan provides for additional staff to be hired for
staffing the de novo branch and supplementing the Savings Bank's commercial
banking skills. Since we believe that the majority of the comparative companies
have more management resources and a broader range of staffing skills, we
believe that a modest downward adjustment is warranted for this factor.
Dividend Payments
Table 6 provides dividend information relative to the Comparative Group
and Industry Groups as a whole. The Comparative Group is paying an average
dividend of 1.75%. In contrast, North Carolina thrifts are paying an average
dividend of 1.44% (and median of 1.88%). Southeastern thrifts are paying an
average dividend of 1.77% (median 1.88%) and all thrifts are paying an average
dividend of 1.45% (1.48% median). Landis Savings plans to pay an initial
dividend rate of $0.40 per share or 4%.
We believe that no adjustment is warranted relative to Landis Savings'
intention to pay dividends.
Liquidity
Small thrift institution stocks generally have not been actively traded,
resulting in limited liquidity. Landis Savings' Holding Company has not
previously issued capital stock to the public, and, consequently, there is no
current market for the Holding Company's common stock. Management anticipates
that the Common Stock will be quoted on the OTC Bulletin Board Service operated
by NASD. The trading markets for securities quoted in the OTC Bulletin Board
typically lack depth, liquidity, and orderliness necessary to maintain an active
market in the trading of such securities. William R. Hough & Co. has advised
Landis Savings that it plans to act as market maker for the Common Stock, but it
is not obligated to do so. In addition, William R. Hough & Co. and the Savings
Bank will seek to encourage and assist other broker dealers to make a market in
the Common. While these steps will be taken, there can be no assurance that a
liquid market will develop. A liquid market having depth, liquidity, and
orderliness depend upon the presence in the marketplace of both willing buyers
and sellers of the Common Stock. These factors are not within the control of the
Holding Company or Savings Bank.
Following the initial issuance of the Common Stock, it is anticipated that
the liquidity of the Holding Company's Common Shares may be very limited over
time. We anticipate that the Common Stock's limited liquidity could ultimately
be reflected in its trading price.
The Comparative Group consists of companies with sufficient trading volume
to develop meaningful pricing characteristics for the stock. The market value of
the Comparative Group averages $15.6 million ($16.0 median), and ranges from
$6.62 million to $27.1 million. At the midpoint valuation of Landis Savings is
$7.0 million (based upon 700,000 shares at $10 per
38
<PAGE>
share), the Savings Bank's market capitalization would approximate 45% of the
Comparative Group average.
As a result of these factors, it is anticipated that the Holding Company's
Common Stock will lack consistent liquidity. Therefore, we believe that a modest
discount is warranted for the lack of consistent liquidity.
Marketing of the Issue
To evaluate the factors impacting the marketing of the Holding Company's
Common stock, we must consider numerous factors, including general economic
conditions, interest rate trends, and the thrift equity marketplace for seasoned
issues and thrift initial public offerings.
General Economic Conditions. The December, 1997 Conference Board release
of the Index of Leading Indicators (October, 1997 data) showed the Index of
Leading Indicators increasing by .2 percent for October, the sixth consecutive
increase in the leading index. April's .1% decline interrupted what would have
been a 12-month trend of positive indications. For the 10 months to October, the
Index rose 1.9%, which compares to a rise of 2.2% for all of 1996.
In the October data, seven of the ten components of the leading indicator
rose. Of the negative indications, Interest Rate Spread (Spread of the rate of
interest on the 10 year Treasury Bond over the Federal Funds rate) declined from
1.38% in April to .53% indicating a further flattening of the yield curve. The
Coincident and Lagging Indicators revealed similar rises.
Generally, the positive indications from the Index of Leading Indicators
are precursors of continued economic expansion.
According to the Bureau of Economic Analysis, Gross Domestic Product grew
by 3.3% (adjusted) in the third quarter compared to a growth rate of 3.3% for
the second quarter and 4.9% for the first quarter of 1997. For all of 1996, the
Gross Domestic Product grew by 2.8%.
In the Producer Price Index for finished goods, a string of increases in
August through October was interrupted by a decline of .2% in November. In eight
of the eleven months through November of 1997, the index declined. For the first
eleven months of 1997, the Producer Price Index, considered a precursor to
general price trends declined at an 1.2% annual rate. This compares to a 2.8%
increase in 1996.
Interest Rate Trends. Interest rates declined slowly, with some short
interruptions, during 1995. Short-term rates remained relatively stable during
1996 while longer-term rates increased through mid-year before retreating
slightly. Short rates increased in the first half of 1997 to peak in the second
quarter and remain relative stable since. Long term rates increased similarly to
through the second quarter but have declined steadily since. FOMC policy of
containing inflation through strict monetary and fiscal policy appears to be
working. Increases in the Leading Indicator Index figures, Producer Price Index
declines, increases in real Gross
39
<PAGE>
Domestic Product and low unemployment all portend a stable economy requiring
little "tweaking." Conservative estimates provide for a possible increase in the
discount rate in 1998 after the Asian monetary crisis is moderated. Given that
interest rates are a reflection of the requirement for real interest plus
inflation, continued control of inflation appears to predict relatively stable
interest rates in the near term.
Declines in long term rates with stable short-term rates indicate that
interest spreads for Landis Savings will continue to decline. Moreover, the
Savings Bank's negative one-year maturity mismatch is high and therefore it is
vulnerable to increases in rates, particularly short-term rates.
Thrift Equity Market. Table 6 summarizes the movement of the SNL Thrift
Indexes.
Table 6
Thrift and Market Indices
1997 Percent Change
---- --------------
Nov Oct Sept Dec.1996 Dec.1995 Nov/Sept Nov/1996
--- --- ---- -------- -------- -----------------
All Publicly Traded 767.4 752.4 737.5 483.6 376.5 4.05 58.67
SAIF 703.7 689.6 669.5 555.0 356.8 5.11 60.22
NYSE 466.9 464.0 442.7 277.3 257.6 5.47 68.40
AMEX 238.4 225.8 214.9 192.7 137.7 10.94 52.63
OTC 876.2 855.8 847.4 569.7 449.5 3.40 53.78
SE 704.5 718.1 670.2 447.2 467.2 5.12 57.53
Assets < $ 250 MM 815.4 795.7 801.0 586.6 538.4 1.80 39.00
DJIA 7823.1 7442.1 7945.3 6448.3 5117 -1.54 21.32
S & P 955.4 914.6 947.3 740.7 615.9 .86 28.98
Thrift and bank stocks have outperformed the broader market during
1995-1996 and thus far in 1997. Investor expectations that lower interest rates
benefit financial companies together with confirming announced higher earnings,
until recently, for the thrift industry have attracted investors. To a lesser
degree, the macro shift in the U.S. from a manufacturing to a service economy, a
large part of which is the financial services industry segment, has focused
investors in the financial element of the market. Merger multiples approaching
300% of book for Banks and 200% of book for thrifts have also increased interest
by investors in such stocks.
40
<PAGE>
Publicity about "pops" in initial public offerings for converting thrifts
at seminars and in industry and even general investor publications has attracted
a larger body of such investors. Consequently, initial public offering issues
have continued to exhibit large gains in spite of substantial increases in
appraised values. The proliferation of "return of capital" dividends from
converting institutions has created additional interest.
Smaller institutions have participated to a lesser extent in the general
thrift market rise over the period.
Exhibit XXXIX provides a summary of recent thrift conversions. As shown,
conversions over the past year have experienced strong price appreciations in
the aftermarket. More specifically, the thrift conversions' prices during
October, 1997 bounced sharply up in the aftermarket, appreciating on average
49.4% on their first day of trading; 50.8% at the end of their first week of
trading and 53.3% at the end of their first month of trading. The market for IPO
issues from converting thrifts remains strong and should remain so. As
information about declining spreads and profits in the industry become widely
known, some investors who "invest on earnings" may leave the market. However,
the consensus that thrift stock investment decisions are currently heavily
weighted toward book value rather than earnings will maintain strong support for
industry stocks.
On balance, we believe that the overall economy continues to be strong and
market conditions are favorable for a thrift initial public offering, Since the
Savings Bank has never issued stock before, we believe that a new issue discount
is applicable in valuing Landis Savings.
Summary of Adjustments
Table 7 provides a summary of the adjustments applied to Landis Savings
relative to the Comparative Group. We have made no adjustments to the value of
the Savings Bank for its market area or dividend payments. A modest upward
adjustment is made for the Savings Bank's financial condition. Modest downward
adjustments are made for the Savings Bank's growth and predictability of
earnings, size and growth potential; management; and liquidity of stock.
Downward adjustments are also made for the Savings Bank's profitability and the
new issue discount.
41
<PAGE>
- --------------------------------------------------------------------------------
Table 7
Summary of Valuation Discounts
- --------------------------------------------------------------------------------
Factor Modest No Modest
Premium Adjustment Discount Discount
- --------------------------------------------------------------------------------
Financial Condition X
- --------------------------------------------------------------------------------
Profitability X
- --------------------------------------------------------------------------------
Growth and X
Predictability of
Earnings
- --------------------------------------------------------------------------------
Size and Growth X
Potential
- --------------------------------------------------------------------------------
Market Area X
- --------------------------------------------------------------------------------
Management X
- --------------------------------------------------------------------------------
Dividend Payments X
- --------------------------------------------------------------------------------
Liquidity X
- --------------------------------------------------------------------------------
Marketing of the X
Issue--New Issue
Discount
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Valuation Method
In applying the accepted valuation methodology promulgated by the Office
of Thrift Supervision and adopted by the Federal Deposit Insurance Corporation,
we have considered three key pricing ratios in valuing Landis Savings, including
the price/earnings, price/book value, and price/assets approaches.
Traditionally, investors have focused on a company's price/earnings ratio in
determining market valuation. However, due to the wide variance in the quality
of thrifts' earnings, it is not practical to use solely the price/earnings
approach to arriving at a valuation. Price/book value is a useful yardstick in
measuring financial stocks in general. A third method for thrift valuations is
the price/assets ratio, which is more meaningful when the subject company is
thinly capitalized and/or low earnings or operating losses. The price/assets
ratio is a measurement of the franchise value of the institution.
In computing the pro forma impact of the conversion and related pricing
ratios in Table 8, we have utilized the valuation assumptions outlined in the
Savings Bank prospectus, including the offering expenses ($450,000); an earnings
rate for conversion proceeds based upon the one year treasury bill rate (3.37%,
net of taxes); and the stock benefit assumptions. Exhibits XXXX and XXXXI
summarize these benefits and provides the pro forma valuation calculations. We
have also utilized the appraisal earnings base of $166,167, reflecting the
adjusted earnings for the twelve months ending September 30, 1997.
The Savings Bank has adopted Statement Position ("SOP") 93-6, which will
cause earnings per share computations to be based on shares issued and
outstanding, excluding unreleased ESOP shares. In preparing the pro forma
pricing analyses, all shares issued in the
42
<PAGE>
offering are reflected in our analysis, including all ESOP share to capture
their full dilutive impact. We did consider the adoption of SOP 93-6 in the
valuation.
Based upon the valuation adjustment discussed above and placing the
greatest weight on the price/earnings multiple and price/book value ratio, The
Meritas Group has concluded that as of December 3, 1997, the pro forma market
value of the Savings Bank's stock is $7,000,000.
Table 9 presents Landis Savings pro forma ratios and compares them to the
Comparative Group and publicly traded thrift universe. On December 3, 1997, the
Comparative Group traded at an average of 21.47X earnings and 118.31% of book
value. The Comparative Group traded at a median of 16.07X times earnings and
116.26% of book value.
At the midpoint of the valuation range, Landis Savings is priced at a
30.1X earnings and 69.24% of book value. At the maximum end of the range, Landis
Savings is priced at 31.8X earnings and 72.96% of book value. At the super
maximum, Landis Savings is priced at 33.5X earnings and 76.53% of book value.
At the valuation midpoint of $7,000,000, Landis Savings is priced at a
41.5% discount from the Comparative Group's price/book average and 40.4%
discount from its price/book median. The Savings Bank's price/earnings multiple
represents a 40.2% premium to the Comparative Group's P/E average and 62.9%
premium to its P/E median.
At the valuation maximum of $8,050,000, Landis Savings is priced at a
38.3% discount from the Comparative Group's price/book average and 37.2%
discount from its price/book median. The Savings Bank's price/earnings multiple
represents a 48.1% premium to the Comparative Group's P/E average and 72.1%
premium to its P/E median.
As shown in Exhibit XXXIX, conversions closing since October 1, 1997 were
issued at an average price/book ratio of 74.18% and median of 75.18%. Landis
Savings pro forma price to book value ratio is 69.24% at the midpoint; 72.96% at
the maximum and 76.53% at the super maximum of the valuation range. At the
midpoint valuation, the Savings Bank is 6.7% below the October IPO conversion
average and 8.6% below the October IPO conversion median. At the maximum
valuation, the Savings Bank is 1.6% below the October IPO conversion average and
3.0% below the recent October IPO conversion median. At the super maximum
valuation, the Savings Bank is 3.2% above the recent conversion average and 1.8%
above the recent conversion median.
Valuation Conclusion
It is, therefore, our opinion that as of December 3, 1997, the estimated
pro form market value of Landis Savings was $7,000,000, equal to 700,000 shares
offered at $10.00 per share. Based upon a 15 percent range below and above the
midpoint, the resulting valuation range was from $5,950,000 and $8,050,000.
Based upon a $10.00 per share offering price, this valuation range represents an
offering of 595,000 to 805,000 shares. The Holding Company's offering also
includes a provision for a super maximum, which if authorized, would result in a
$9,257,500
43
<PAGE>
offering (925,750 shares at $10.00 per share). The pro forma calculations are
shown in Table 8 and are detailed in Exhibits XXXX and XXXXI.
44
<PAGE>
Table 8
Pro Forma Effects of Conversion Proceeds
Landis Savings Bank, SSB
as of December 3, 1997
<TABLE>
<CAPTION>
Minimum Midpoint Maximum Super Max
------- -------- ------- ---------
Conversion Proceeds
<S> <C> <C> <C> <C>
Pro forma market value $ 5,950,000 $ 7,000,000 $ 8,050,000 $ 9,257,500
Less: Estimated offering expenses (450,000) (450,000) (450,000) (450,000)
------------ ------------ ------------ ------------
Net conversion proceeds 5,500,000 6,550,000 7,600,000 8,807,500
Less: Shares to be acquired by RP (4%) (238,000) (280,000) (322,000) (370,300)
Less: Shares to be acquired by ESOP (8%) (476,000) (560,000) (644,000) (740,600)
------------ ------------ ------------ ------------
Adjusted net conversion proceeds 4,786,000 5,710,000 6,634,000 7,696,600
Estimated Additional Income from Conversion Proceeds
Adjusted Net Conversion Proceeds 4,786,000 5,710,000 6,634,000 7,696,600
Estimated net incremental rate of return 3.37% 3.37% 3.37% 3.37%
------------ ------------ ------------ ------------
Gross Pro Forma Earnings on Proceeds 161,116 192,221 223,327 259,098
Less: Investment in Branch ($1.6 mil @ 3.37%) (53,862) (53,862) (53,862) (53,862)
Less: Cost of Servicing RP, after taxes (30,464) (35,840) (41,216) (47,398)
Less: Cost of Servicing ESOP, after taxes (30,464) (35,840) (41,216) (47,398)
------------ ------------ ------------ ------------
Net Pro Forma Earnings on Proceeds 46,326 66,679 87,033 110,439
Pro Forma Earnings
Before Conversion 166,176 166,176 166,176 166,176
Earnings on Proceeds 46,326 66,679 87,033 110,439
------------ ------------ ------------ ------------
Pro Forma Earnings After Conversion 212,502 232,855 253,209 276,615
Pro Forma Net Worth
Before Conversion 4,399,568 4,399,568 4,399,568 4,399,568
Conversion Proceeds 4,786,000 5,710,000 6,634,000 7,696,600
------------ ------------ ------------ ------------
Pro Forma Net Worth After Conversion 9,185,568 10,109,568 11,033,568 12,096,168
Pro Forma Total Assets
Before Conversion 24,234,080 24,234,080 24,234,080 24,234,080
Conversion Proceeds 4,786,000 5,710,000 6,634,000 7,696,600
------------ ------------ ------------ ------------
Pro Forma Total Assets After Conversion 29,020,080 29,944,080 30,868,080 31,930,680
Pro Forma Pricing Ratios
Price /Pro Forma Appraisal Base Earnings 28.0 30.1 31.8 33.5
Price/Pro Forma Net Worth 64.78% 69.24% 72.96% 76.53%
Price/Pro Forma Total Assets 20.50% 23.38% 26.08% 28.99%
</TABLE>
<PAGE>
Table 9
Pro Forma Pricing Comparisons
Landis Savings Bank, SSB
<TABLE>
<CAPTION>
Total
Current Market Price/ LTM Price/ Price/ Price/ Dividend Assets
Price Value Earnings Book Tang. Book Assets Yield MstRctQtr
Company Name Ticker ($) ($M) (x) (%) (%) (%) (%) ($000)
- ------------ ------ --- ---- --- --- --- --- --- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
All Public Thrifts
Averages 25.227 224.21 19.04 167 173.78 18.2 1.45 1,387,012
Medians 22.641 63.13 18.26 156.07 158.45 16.89 1.48 372,694
NYSE-Traded Thrifts
Averages 47.715 2,199.53 17.39 204.17 234.57 15.78 0.65 15,665,476
Medians 47.75 1,087.68 17.27 200.59 205.72 13.20 0.63 7,207,143
AMEX-Traded Thrifts
Averages 23.0884 55.28 18.32 146.09 147.43 20.19 2.09 290,938
Medians 21.688 43.56 17.65 133.05 134.31 18.06 2.15 222,076
NASDAQ-Traded Thrifts
Averages 24.446 158.63 19.14 166.74 173.03 18.19 1.44 905,475
Medians 22.5 61.32 18.33 156.07 158.43 16.89 1.48 371,958
Southeastern Region Thrifts
Averages 24.685 95.87 21.18 175.14 181.94 21.94 1.77 564,645
Medians 22.125 74.08 20.76 156.91 157.4 18.22 1.88 337,197
North Carolina Thrifts
Averages 22.475 59.62 21.24 138.24 138.55 29.05 1.44 219,257
Medians 18.75 35.35 23.53 13.96 130.96 29.42 1.88 152,796
Comparative Group
CKF Bancorp, Inc. CKFB 18.500 16.71 14.80 109.40 109.40 27.91 2.70 59,868
Community Investors Bancorp, Inc. CIBI 16.375 14.78 15.60 135.44 135.44 15.91 1.95 94,328
FFD Financial Corporation FFDF 18.750 27.09 15.00 126.18 126.18 30.71 0.00 88,220
Home Building Bancorp, Inc. HBBI 21.250 6.62 18.48 104.01 104.01 15.86 1.41 41,746
Joachim Bancorp, Inc. JOAC 15.000 10.84 39.47 109.81 109.81 30.90 3.33 35,073
Lexington B&L Financial Corp. LXMO 17.125 19.50 30.04 116.26 116.26 32.91 1.75 59,236
Logansport Financial Corp. LOGN 15.250 19.22 16.94 118.58 118.58 22.41 0.00 85,801
London Financial Corporation LONF 15.750 8.11 19.44 106.71 106.71 21.23 1.52 38,210
Mississippi View Holding Company MIVI 17.500 12.95 18.23 107.36 107.36 18.90 0.91 68,546
Scotland Bancorp, Inc. SSB 10.125 19.38 13.68 133.05 133.05 30.09 2.96 64,399
Sobieski Bancorp, Inc. SOBI 19.000 14.81 28.79 110.08 110.08 17.57 1.68 84,279
South Carolina Community Bancshrs SCCB 23.000 16.07 29.49 132.56 132.56 35.23 2.61 45,619
Three Rivers Financial Corp. THR 20.250 16.68 19.10 128.57 129.06 17.70 1.98 94,216
Average: 17.529 15.60 21.47 118.31 118.35 24.41 1.75 66,119
Median: 17.500 16.07 18.48 116.26 116.26 22.41 1.75 64,399
Landis Savings Bank, SSB
Before Conversion 24,234
Pro Forma Supermaximum 10.00 9.258 33.4 76.53 76.53 28.99 3.00 31,931
Pro Forma Maximum 10.00 8.050 31.8 72.96 72.96 26.08 3.00 30,868
Pro Forma Midpoint 10.00 7.000 30.1 69.24 69.24 23.38 3.00 29,944
Pro Forma Minimum 10.00 5.950 28.0 64.78 64.78 20.5 3.00 29,020
</TABLE>
Source: SNL Securities, Charlottesville, VA; Meritas calculations
<PAGE>
Table 9, page 2
Pro Forma Pricing Comparisons
Landis Savings Bank, SSB
<TABLE>
<CAPTION>
Price/
LTM Premium/ Price/ Premium/ Price/ Premium/ Price/ Premium/
Earnings (Discount) Book (Discount) Tang. Book (Discount) Assets (Discount)
Company Name (x) % (%) % (%) % (%) %
- ------------ --- - --- - --- - --- -
<S> <C> <C> <C> <C> <C> <C> <C> <C>
All Public Thrifts
Averages 19.04 167 173.78 18.2
Landis Savings Bank, SSB
Pro Forma Supermaximum 33.4 75.42% 76.53 -54.17% 76.53 -55.96% 28.99 59.29%
Pro Forma Maximum 31.8 67.02% 72.96 -56.31% 72.96 -58.02% 26.08 43.30%
Pro Forma Midpoint 30.1 58.09% 69.24 -58.54% 69.24 -60.16% 23.38 28.46%
Pro Forma Minimum 28.0 47.06% 64.78 -61.21% 64.78 -62.72% 20.5 12.64%
Southeastern Region Thrifts
Averages 21.18 175.14 181.94 21.94
Landis Savings Bank, SSB
Pro Forma Supermaximum 33.4 57.70% 76.53 -56.30% 76.53 -57.94% 28.99 32.13%
Pro Forma Maximum 31.8 50.14% 72.96 -58.34% 72.96 -59.90% 26.08 18.87%
Pro Forma Midpoint 30.1 42.12% 69.24 -60.47% 69.24 -61.94% 23.38 6.56%
Pro Forma Minimum 28.0 32.20% 64.78 -63.01% 64.78 -64.39% 20.5 -6.56%
North Carolina Thrifts
Averages 21.24 138.24 138.55 29.05
Landis Savings Bank, SSB
Pro Forma Supermaximum 33.4 57.25% 76.53 -44.64% 76.53 -44.76% 28.99 -0.21%
Pro Forma Maximum 31.8 49.72% 72.96 -47.22% 72.96 -47.34% 26.08 -10.22%
Pro Forma Midpoint 30.1 41.71% 69.24 -49.91% 69.24 -50.03% 23.38 -19.52%
Pro Forma Minimum 28.0 31.83% 64.78 -53.14% 64.78 -53.24% 20.5 -29.43%
Comparative Group
Average: 21.47 118.31 118.35 24.41
Median: 18.48 116.26 116.26 22.41
Landis Savings Bank, SSB
Pro Forma Supermaximum 33.4 55.57% 76.53 -35.31% 76.53 -35.34% 28.99 18.76%
Pro Forma Maximum 31.8 48.11% 72.96 -38.33% 72.96 -38.35% 26.08 6.84%
Pro Forma Midpoint 30.1 40.20% 69.24 -41.48% 69.24 -41.50% 23.38 -4.22%
Pro Forma Minimum 28.0 30.41% 64.78 -45.25% 64.78 -45.26% 20.5 -16.02%
</TABLE>
Source: SNL Securities, Charlottesville, VA; Meritas calculations
<PAGE>
Exhibit I
The Meritas Group, Inc.
Firm's Background
The Meritas Group, Inc. ("Meritas") provides financial consulting,
valuation and advisory services to community banks and thrifts. Meritas was
established in January 1987 in Chapel Hill, North Carolina.
Meritas provides valuations for mutual to stock conversions for thrifts,
ESOP valuations for banks and thrifts, and analyses of value for acquisitions
for both whole institutions and for branches. Meritas' thrift conversion
valuation clients include First Federal Savings and Loan Association of
Northwest Florida, Fort Walton Beach, FL; Summit Savings Bank, Sanford, NC;
First Southern Savings Bank, Asheboro, NC; Mutual Savings Bank, Lenoir, NC;
Granite Savings Bank, Granite Falls, NC; Graham Savings Bank, Graham, NC;
Citzens Savings Bank, Lenoir, NC; Canton Savings Bank, Canton, NC; Peoples
Savings Bank, SSB, Wilmington, NC; and Perpetual Savings Bank, Lexingon, NC
Following are other services provided for Meritas clients, which range
from de novo commercial banks to two of the major commercial banking entities:
o Financial advisory services related to conversions, including the
development of the "least cost" strategies and review, analysis and
qualifying conversion team members.
o Feasibility analysis and business plan development for de novo commercial
banks.
o Analysis of prospective branch site for thrifts and commercial banks.
o Acquisition programs, strategic and specific, for banks and thrifts.
o Analysis of acceptable premiums payable by clients for branch purchases.
Meritas has provided premium calculations and recommendations for the sale
or purchase of both bank and thrift branches.
o Strategic programs for acquisitions of commercial banks and thrifts
including the analysis of loan portfolios.
o Maximization of shareholder value through specific, practical plans for
future actions including institution or branch sales.
o Strategic and regulatory business plans for thrifts and community banks.
o Capital plans for community banks.
o Policy and procedures review and improvement programs.
o Interest rate risk review, including revision of IRR policies.
o Expert witnesses for state and governmental agencies for thrift and
commercial banking matters.
<PAGE>
Sam A. Harris
Experience
The Meritas Group, Inc. Chapel Hill, NC
President
Since January, 1987, Mr. Harris and his partners have, through The Meritas
Group, provided community financial institutions with concrete, realistic advice
about financial and capital matters, including mergers and acquisitions,
business and strategic planning and conversion valuations and advisory services
and regulatory relations support.
Trident Financial Corporation Raleigh, NC
Executive Vice President
Chief Operating Officer of Trident Financial Corporation, an investment banking
and consulting firm serving the thrift industry. In charge of all supervisory
and modified conversion activities. Worked extensively with investors evaluating
opportunities for entry into the thrift industry.
Peat, Marwick, Mitchell & Co. Raleigh, NC
Managing Partner, Raleigh office
Partner-in-charge of Financial Institutions Practice and Securities and Exchange
Commission Review Partner. Responsible for accounting, auditing, and financial
advice for savings institutions, banks, and insurance companies.
Other Profesional
Chairman of the Underwriting Committee of Financial Institutions Assurance
Corporation, a private deposit insurance company. Responsible for monitoring the
financial condition of all insured institutions and setting policy for
supervisory actions taken by the Corporation.
Former Accounting Counsel for the North Carolina Savings and Loan League.
Education
B.B.A., Georgia State University, 1962
Atlanta, GA
Stanford University Palo Alto, CA
Additional graduate studies in economics and management;
<PAGE>
Karen L. Young
Experience
The Meritas Group, Inc. Chapel Hill, NC
Senior Vice-President
Ms. Young is responsible for valuations of thrifts and community banks for
conversion, secondary stock issuance and merger and acquisition purposes. In
addition, she provides assistance with interest rate risk, capital restoration
and policy and procedures matters for her clients.
Trident Financial Corporation Raleigh, NC
Senior Vice-President
Performed due diligence and valuations of thrifts for mutual-to-stock
conversions, merger conversions and mergers and acquisitions. Prepared investor
packages for the sale of thrift institutions. Assisted potential acquirors of
thrifts with analysis and due diligence. Successfully negotiated the sale of
several thrift institutions. Created a database containing historical financial
and stock pricing information for all actively traded, publicly held thrifts for
use in conversion appraisals.
Financial Institutions Assurance Corporation Raleigh, NC
Senior Vice-President
Head of Supervision for this private deposit insurance company. Performed
regulatory examinations and operational reviews of insured member institutions.
Developed an automated financial analysis system that provided the Underwriting
Committee an "early warning" of adverse trends in the insured institutions.
Analyzed and recommended approval or disapproval of merger and acquisition
activities of insureds. Underwrote new applicants for deposit insurance with
recommendations to the Underwriting Committee of the Board.
North Carolina Department of Commerce,
Savings and Loan Division Raleigh, NC
Senior Savings and Loan Examiner
Conducted regulatory examinations of the safety and soundness of state chartered
thrift institutions in North Carolina. Developed an audit software examination
program for use with Thrift's data processing service centers.
Other Professional
Served as a Credit Union Commissioner for the State of North Carolina
Education
B.S., University of North Carolina at Chapel Hill, 1978
Chapel Hill, NC
<PAGE>
Exhibit II
[MAP DELETED]
Main Office Location
Proposed Branch Location
<PAGE>
Exhibit III
LANDIS SAVINGS BANK, SSB
STATEMENTS OF FINANCIAL CONDITION
December 31, 1996 and 1995
1996 1995
----------- -----------
ASSETS
Cash on hand and in banks .......................... $ 307,474 $ 100,023
Interest-earning balances in other banks ........... 33,190 32,458
Federal funds sold ................................. 675,000 100,000
Investment securities available for sale at fair
value (amortized cost of $2,146,388 and
$1,975,591 at December 31, 1996 and 1995,
respectively) (Note B) .......................... 2,148,475 1,987,739
Investment securities held to maturity,
at amortized cost (fair value of $23,584 at
December 31, 1995) (Note B) ..................... -- 23,151
Loans receivable, net (Note C) ..................... 18,916,960 17,307,687
Accrued interest receivable ........................ 40,440 34,477
Promises and equipment, net (Note D) ............... 291,100 275,520
Stock in the Federal Home Loan Bank, at cost ....... 170,200 157,500
Other assets ....................................... 78,589 75,874
----------- -----------
TOTAL ASSETS ....................................... $22,661,428 $20,094,229
=========== ===========
LIABILITIES AND NET RETAINED EARNINGS
Deposit accounts (Note G) .......................... $18,322,484 $15,845,546
Advance payments from borrowers for property
taxes and insurance ............................. 8,794 7,086
Accrued expenses and other liabilities ............. 17,652 35,284
----------- -----------
TOTAL LIABILITIES .................................. 18,348,930 15,887,916
----------- -----------
Commitments and contingencies (Notes C and L)
Retained earnings, substantially restricted ..... 4,312,498 4,206,313
----------- -----------
TOTAL LIABILITIES AND NET RETAINED EARNINGS ........ $22,661,428 $20,094,229
=========== ===========
<PAGE>
LANDIS SAVINGS BANK, SSB
STATEMENTS OF OPERATIONS
Years Ended December 31, 1996 and 1995
1996 1995
----------- -----------
INTEREST INCOME
Loans .............................................. $1,445,284 $ 1,355,524
Investments ........................................ 136,781 138,369
Deposits in other banks and federal funds sold ..... 27,485 16,362
----------- -----------
TOTAL INTEREST INCOME ................................ 1,609,550 1,510,255
----------- -----------
INTEREST EXPENSE
Deposit accounts ................................... 840,658 723,424
----------- -----------
NET INTEREST INCOME .................................. 768,892 786,831
PROVISION FOR LOAN LOSSES ............................ 5,200 900
----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES .. 763,692 785,931
----------- -----------
OTHER INCOME
Transaction and other service fee income ........... 3,803 1,910
Gain (loss) on sale of investment securities ....... 4,008 (297)
----------- -----------
TOTAL OTHER INCOME ................................... 7,811 1,613
OTHER EXPENSES
Personnel costs .................................... 294,888 314,187
Occupancy .......................................... 47,077 43,285
Data processing and outside service fees ........... 72,679 54,936
Deposit insurance premiums ......................... 27,275 35,210
SAIF special assessment (Note I) ................... 101,142 --
Other .............................................. 66,805 61,066
----------- -----------
TOTAL OTHER EXPENSES ................................. 609,866 508,684
----------- -----------
INCOME BEFORE INCOME TAXES ........................... 161,637 278,860
INCOME TAX EXPENSE ................................... 49,790 100,928
----------- -----------
NET INCOME ........................................... $ 111,847 $ 177,932
=========== ===========
<PAGE>
LANDIS SAVINGS BANK, SSB
STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
ASSETS
Cash on hand and in banks ...................................... $91,360 $1,057,774
Interest-bearing balances in other banks ....................... 26,167 29,679
Federal funds sold ............................................. 2,325,000 525,000
Investment securities available for sale, at fair value ........ 2,559,251 1,813,830
Loans receivable, net .......................................... 18,640,913 18,457,667
Accrued interest receivable .................................... 43,706 25,499
Premises and equipment, net .................................... 291,714 279,070
Stock in the Federal Home Loan Bank, at cost ................... 187,200 170,200
Other assets ................................................... 68,839 110,889
----------- -----------
TOTAL ASSETS ................................................. $24,234,150 $22,469,608
=========== ===========
LIABILITIES AND NET RETAINED EARNINGS
Deposit accounts ............................................... $19,700,661 $18,077,350
Advance payments from borrowers for property taxes and insurance 2,749 4,275
Accrued expenses and other liabilities ......................... 135,359 126,266
----------- -----------
TOTAL LIABILITIES ............................................ 19,838,769 18,207,891
----------- -----------
Retained earnings, substantially restricted .................... 4,395,381 4,261,717
----------- -----------
TOTAL LIABILITIES AND NET RETAINED EARNINGS .................. $24,234,150 $22,469,608
=========== ===========
</TABLE>
<PAGE>
LANDIS SAVINGS BANK, SSB
STATEMENTS OF OPERATIONS (UNAUDITED)
September 30, 1997 and 1996
1997 1996
---------- ----------
INTEREST INCOME
Loans ............................................. $1,126,467 $1,080,909
Investments ....................................... 135,903 97,848
Deposits in other banks and federal funds sold .... 49,151 14,679
---------- ----------
TOTAL INTEREST INCOME ................................ 1,311,521 1,193,436
---------- ----------
INTEREST EXPENSE
Deposit accounts .................................. 731,541 609,217
---------- ----------
NET INTEREST INCOME .................................. 579,980 584,219
PROVISION FOR LOAN LOSSES ............................ 21,900 3,700
---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES .. 558,090 580,519
---------- ----------
OTHER INCOME
Transaction and other service fee income .......... 1,855 3,366
Gain on sale of investment securities ............. 2,423 2,033
---------- ----------
TOTAL OTHER INCOME ................................... 4,278 5,399
---------- ----------
OTHER EXPENSES
Personnel costs ................................... 273,940 186,323
Occupancy ......................................... 32,980 33,324
Data processing and outside service fees .......... 45,875 57,873
Deposit insurance premiums ........................ 8,785 25,261
SAIF special assessment -- 101,142
Other ............................................. 91,617 85,091
---------- ----------
TOTAL OTHER EXPENSES ................................. 453,197 489,014
---------- ----------
INCOME BEFORE INCOME TAXES ........................... 109,161 96,904
INCOME TAX EXPENSE ................................... 31,000 30,000
---------- ----------
NET INCOME ........................................... $78,161 $1,080,909
========== ==========
<PAGE>
Exhibit IV
Landis Savings Bank, SSB
GAP Table
<TABLE>
<CAPTION>
Terms to Repricing at September 30,1997
------------------------------------------------------------------
More Than More Than
1 Year 1 Year to 3 Years to More than More than
or Less 3 Years 5 Years 5 Years 10 Years Total
------- ------- ------- ------- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans receivable:
Real estate loans:
1-4 Family residential
Fixed $ 27 $ 174 $ 768 $ 4,479 $ 5,765 $ 11,213
Adjustable 5,139 -- -- -- -- 5,139
Other
Construction - adjustable 234 -- -- -- -- 234
Other real estate loans - adjustable 2,027 -- -- -- -- 2,027
Other loans 58 -- -- -- -- 58
Interst-bearing cash balances 26 -- -- -- 26
Federal Funds Sold 2,325 -- -- -- 2,325
Investment securities 801 1,758 -- -- -- 2,559
Stock in the Federal Home Loan Bank -- -- -- -- 187 187
-------- -------- -------- -------- -------- --------
Total interest-earning assets $ 10,637 $ 1,932 $ 768 $ 4,479 $ 5,952 $ 23,768
======== ======== ======== ======== ======== ========
Interest-bearing liabilities:
Deposits
Regular passbook $ 3,994 -- -- -- -- $ 3,994
Money market passbook 4,504 -- -- -- -- 4,504
Certificate accounts 8,864 2,339 -- -- -- 11,203
-------- -------- -------- -------- -------- --------
Total interest-bearing liabilites $ 17,362 $ 2,339 $ 0 $ 0 $ 0 $ 19,701
======== ======== ======== ======== ======== ========
Interst sensitivity gap ($ 6,725) ($ 407) $ 768 $ 4,479 $ 5,952 $ 4,067
======== ======== ======== ======== ======== ========
Cumulative interest sensitivity gap ($ 6,725) ($ 7,132) ($ 6,364) ($ 1,885) $ 4,067 $ 4,067
======== ======== ======== ======== ======== ========
Ratio of interest-earning assets to
interest-bearing liabilities 61.27% 63.80% 67.70% 90.43% 120.64% 120.64%
======== ======== ======== ======== ======== ========
Ratio of cumulative gap to total assets -27.75% -29.43% -26.26% -7.78% 16.78% 16.78%
======== ======== ======== ======== ======== ========
</TABLE>
Source: Offering Circular
<PAGE>
Exhibit V
Landis Savings Bank, SSB
Net Portfolio Value Analysis
Change in Net Portfolio Value
Interest Rates ---------------------------------
in Basis Points
(Rate Shock) Amount $Change %Change
------------ ------ ------- -------
Up 400 3,892 (1,002) -20.48%
Up 300 4,179 (715) -14.61%
Up 200 4,466 (428) -8.74%
Up 100 4,680 (214) -4.37%
Static 4,894 0 0.00%
Down 100 4,979 85 1.73%
Down 200 5,063 169 3.45%
Down 300 5,168 274 5.59%
Down 400 5,273 379 7.73%
Source: Offering Circular
<PAGE>
Exhibit VI
Landis Savings Bank, SSB
Net Interest Income Analysis
Change in Net Interest Income
Interest Rates ----------------------------------------
in Basis Points
(Rate Shock) Amount $Change %Change
------------ ------ ------- -------
Up 400 642 (3) -0.46%
Up 300 650 5 0.80%
Up 200 658 13 2.06%
Up 100 651 6 1.03%
Static 645 0 0.00%
Down 100 621 (24) -3.68%
Down 200 597 (48) -7.36%
Down 300 573 (72) -11.14%
Down 400 548 (97) -14.92%
Source: Offering Circular
<PAGE>
Exhibit VII
Landis Savings Bank, SSB
Net Interest Income
<TABLE>
<CAPTION>
Nine Months Ended September 30,
----------------------------------------------------------------
At September 30, 1997 1997 1996
--------------------- ------------------------------ --------------------------------
Average Average Average Average Average
Balance Yield/Rate Balance Interest Yield/Rate Balance Interest Yield/Rate
------- ---------- ------- -------- ---------- ------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest earning assets:
Interest-bearing cash balances $ 26 6.23% $ 27 $ 1 4.94% $ 29 $ 1 4.60%
Federal funds sold 2,325 5.88% 1,242 48 5.15% 285 13 6.08%
Stock in the Federal Home Loan Bank 187 7.25% 182 10 7.33% 166 9 7.23%
Investment securities 2,559 5.65% 2,734 126 6.14% 1,990 89 5.96%
Loans receivable 18,641 7.81% 18,792 1,127 8.00% 17,845 1,081 8.08%
--------------------------------------------------------------------------------------
Total interest-earning assets 23,738 7.38% 22,977 1,312 7.61% 20,315 1,193 7.83%
Non-interest-earning assets 496 567 712
-------- -------- --------
Total assets $ 24,234 $ 23,544 $ 21,027
======== ======== ========
Interest-bearing liabilities:
Deposits $ 19,701 5.11% $ 19,114 732 5.11% $ 16,674 609 4.87%
------------------- ---------------------------- ----------------------------
Total interest-bearing liabilities 19,701 5.11% 19,114 732 5.11% 16,674 609 4.87%
Non-interest-bearing liabilities 138 49 116
-------- -------- --------
Total liabilities 19,839 19,163 16,790
Retained earnings 4,395 4,381 4,237
-------- -------- --------
Total liabilities and retained
earnings $ 24,234 $ 23,544 $ 21,027
======== ======== ========
Net interest income and interest rate
spread 2.27% $ 580 2.50% $ 584 2.96%
====== ================= ================
Net yield on average interest-earning
assets 3.37% 3.83%
====== ======
Ratio of average interest-earning
assets to average interest-bearing
liabilities 120.49% 120.21% 121.84%
====== ====== ======
Source: Offering Circular
</TABLE>
<PAGE>
Exhibit VII
Landis Savings Bank, SSB
Net Interest Income
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------------------
1996 1995
-------------------------------- -------------------------------
Average Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate
------- -------- ---------- ------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Interest earning assets:
Interest-bearing cash balances $ 30 $ 2 6.67% $ 28 $ 1 3.57%
Federal funds sold 412 26 6.31% 208 15 7.21%
Stock in the Federal Home Loan Bank 167 12 7.19% 156 11 7.05%
Investment securities 2,084 125 6.00% 2,140 127 5.93%
Loans receivable 18,014 1,445 8.02% 16,784 1,356 8.08%
----------------------------- ------------------------------
Total interest-earning assets 20,707 1,610 7.78% 19,316 1,510 7.82%
Non-interest-earning assets 690 549
------- -------
Total assets $21,397 $19,865
======= =======
Interest-bearing liabilities:
Deposits $17,039 841 4.94% $15,652 723 4.62%
----------------------------- ------------------------------
Total interest-bearing liabilities 17,039 841 4.94% 15,652 723 4.62%
Non-interest-bearing liabilities 108 76
------- -------
Total liabilities 17,147 15,728
Retained earnings 4,250 4,137
------- -------
Total liabilities and retained earnings $21,397 $19,865
======= =======
Net interest income and interest rate
spread $ 769 2.84% $ 787 3.20%
================ =================
Net yield on average interest-earning
assets 3.71% 4.07%
====== ======
Ratio of average interest-earning assets to
average interest-bearing liabilities 121.53% 123.41%
====== ======
Source: Offering Circular
</TABLE>
<PAGE>
Exhibit VIII
Landis Savings Bank, SSB
Rate/Volume Analysis
---------------------------------
Nine Months Ended September,
---------------------------------
1997 vs. 1996
Increase(Decrease)
Due to
---------------------------------
Volume Rate Volume Total
------ ---- ------ -----
Interest income:
Interest-bearing cash balances (0) 0 (0) (0)
Federal funds sold 44 (2) (7) 35
Stock in the Federal Home Loan Bank 1 0 0 1
Investment securities 33 3 1 37
Loans receivable 57 (11) (1) 45
-- --- --- --
Total interest-earning assets 135 (10) (7) 118
Interest expense:
Deposits 89 29 4 122
-- --- --- --
Total interest-bearing liabilities 89 29 4 122
Change in net interest income 46 (39) (11) (4)
== === === ==
Source: Offering Circular
<PAGE>
Exhibit VIII
Landis Savings Bank, SSB
Rate/Volume Analysis
---------------------------------
Year Ended December 31,
---------------------------------
1996 vs. 1995
Increase(Decrease)
Due to
---------------------------------
Rate/
Volume Rate Volume Total
------ ---- ------ -----
Interest income:
Interest-bearing cash balances 0 1 0 1
Federal funds sold 15 (2) (2) 11
Stock in the Federal Home Loan Bank 1 0 0 1
Investment securities (3) 1 (0) (2)
Loans receivable 99 (9) (1) 89
--- -- -- ---
Total interest-earning assets 112 (9) (3) 100
Interest expense:
Deposits 64 50 4 118
--- -- -- ---
Total interest-bearing liabilities 64 50 4 118
Change in net interest income 48 (59) (7) (18)
=== == == ===
Source: Offering Circular
<PAGE>
Exhibit IX
LANDIS SAVINGS, SSB
HISTORICAL AND PRO FORMA REGULATORY CAPITAL
<TABLE>
<CAPTION>
Pro Forma Regulatory Capital
At September 30, 1997 Based upon the Sale of
-------------------------------------------------------------------------
Historical 850,000 1,000,000 1,150,000 1,322,500
Regulatory Shares at Shares at Shares at Shares at
Capital $10.00 $10.00 $10.00 $10.00
At September 30, 1996 Per Share Per Share Per Share Per Share
---------------------- ------------------ ----------------- ----------------- -----------------
Percent of Percent of Percent of Percent of Percent of
Amount Assets Amount Assets Amount Assets Amount Assets Amount Assets
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Capital under generally accepted
accounting principles $4,395 18.1% $7,060 25.6% $7,570 26.8% $8,080 28.0% $8,667 29.3%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Tier I capital $4,395 18.1% $7,060 25.6% $7,570 26.8% $8,080 28.0% $8,667 29.3%
Tier I (leverage) capital requirement 969 4.0% 1,103 4.0% 1,128 4.0% 1,154 4.0% 1,183 4.0%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
====== ====== ====== ====== ======
Excess $3,426 14.1% $5,957 21.6% $6,442 22.8% $6,926 24.0% $7,484 25.3%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Tier I capital $4,395 37.9% $7,060 52.1% $7,570 55.4% $8,080 58.6% $8,667 62.2%
Tier I risk-based capital requirement 464 4.0% 542 4.0% 547 4.0% 552 4.0% 557 4.0%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Excress $3,931 33.9% $6,518 48.1% $7,023 51.4% $7,528 54.6% $8,109 58.2%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total risk-based capital $4,425 38.2% $7,090 52.4% $7,600 55.6% $8,110 58.8% $8,697 62.4%
Total risk-based capital requirement 927 8.0% 1,083 8.0% 1,093 8.0% 1,103 8.0% 1,115 8.0%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Excess $3,498 30.2% $6,008 44.4% $6,508 47.6% $7,008 50.8% $7,583 54.4%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total NC Savings Bank capital $4,425 18.3% $7,090 25.7% $7,600 26.9% $8,110 28.1% $8,697 29.4%
NC Savings Bank Capital Requirement 1,212 5.0% 1,379 5.0% 1,410 5.0% 1,442 5.0% 1,478 5.0%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Excess $3,213 13.3% $5,711 20.7% $6,190 21.9% $6,668 23.1% $7,218 24.4%
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
(1) Assumes the Company will purchase all of the capital stock of the
Converted Bank to be issued in the Stock Conversion for 50% of the net
proceeds. Assumes $1.6 million of the net proceeds distributed to the
Converted Bank will be invested in a new branch facility, with the balance
of any such proceeds invested in 20% risk-weighted assets. Assumes 8% of
the Common Stock to be sold in the Stock Conversion is acquired by the
ESOP, and that the funds used to acquire such shares are borrowed from the
Company. Although repayment of such debt will be secured solely by the
Common Stock purchased by the ESOP, the Converted Bank expects to make
discretionary contributions to the ESOP in an amount at least equal to the
principal and interest payments on the ESOP debt. As a result, the table
assumes a reduction to the Converted Bank's pro forma capital and
regulatory capital to reflect the cost of funding the ESOP. Assumes the
cost of the MRP will be paid by the Bank.
(2) Based on the Bank's total assets determined under generally acccepted
accounting principles for capital as determined under generally accepted
accounting principles, Tier 1 capital purposes and NC Savings Bank capital
guidelines, and risk-weighted assets for the purpose of the risk-weighted
capital requirements.
(3) Assumes a core capital requirement of 4% adjusted total assets, though
such level may be increased by the Federal Reserve Board as high as 5%.
Source: Offering Circular
<PAGE>
Exhibit X
Landis Savings Bank, SSB
Loan Portfolio Composition
<TABLE>
<CAPTION>
At December 31,
At September 30, -----------------------------------------------
1997 1996 1995
---------------------- ------------------- ----------------------
(Dollars in Thousands)
Percentage Percentage Percentage
Amount of Total Amount of Total Amount of Total
------ -------- ------ -------- ------ --------
<S> <C> <C> <C> <C> <C> <C>
Type of loan:
Real estate loans:
One-to-four family residential
Fixed $ 11,273 60.47% $ 11,612 61.38% $ 11,596 67.00%
Adjustable 5,164 27.70% 5,313 28.09% 3,815 22.04%
Multi-family residential
Adjustable 205 1.10% 224 1.18% 249 1.44%
Commercial
Fixed -- -- -- -- 11 0.06%
Adjustable 270 1.45% 248 1.31% 267 1.54%
Construction
Variable 285 1.53% 413 2.18% 338 1.95%
Home equity lines of credit
Adjustable 1,194 6.41% 1,175 6.21% 985 5.69%
Home improvement loans
Fixed -- -- 3 0.02% -- --
Adjustable 358 1.92% 261 1.38% 228 1.32%
---------------------- ------------------- -------------------
Total real estate loans 18,749 100.58% 19,249 101.76% 17,489 101.05%
---------------------- ------------------- -------------------
Other loans:
Loans secured by deposits
Fixed 58 0.31% 59 0.31% 126 0.73%
---------------------- ------------------- -------------------
Total loans 18,807 100.89% 19,308 102.07% 17,615 101.77%
Less:
Construction loans in process (51) -0.27% (289) -1.53% (223) -1.29%
Allowance for loan losses (30) -0.16% (8) -0.04% (2) -0.01%
Deferred loan origination fees, net of costs (85) -0.46% (94) -0.50% (82) -0.47%
---------------------- ------------------- -------------------
$ 18,641 100.00% $ 18,917 100.00% $ 17,308 100.00%
====================== =================== ===================
</TABLE>
Source: Offering Circular
<PAGE>
Exhibit XI
Landis Savings Bank, SSB
Loan Originations
Nine Months Ended Year ended
September 30, December 31,
---------------------------------------
1997 1996 1996 1995
---- ---- ---- ----
Loans originated:
One to four family residential 2,303 3,681 4,726 3,104
Other loans 1,016 1,175 1,277 728
-----------------------------------------
Total loans originated 3,319 4,856 6,003 3,832
=========================================
Source: Offering Circular
<PAGE>
Exhibit XII
Landis Savings Bank, SSB
Loan maturities (repricing) at 9/30/97
<TABLE>
<CAPTION>
More Than More Than More Than
1 Year 1 Year to 3 Years to 5 Years to More Than
or Less 3 Years 5 Years 10 Years 10 years Total
------- ------- ------- -------- -------- -----
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Real Estate loans:
1-4 Family residential
Fixed $ 27 $174 $768 $4,479 $5,765 $ 11,213
Adjustable 5,139 -- -- -- -- 5,139
Other
Construction - adjustable 234 -- -- -- -- 234
Other - adjustable 2,027 -- -- -- -- 2,027
----------------------------------------------------------------------------
Total real estate loans 7,427 174 768 4,479 5,765 18,613
Other loans 58 -- -- -- -- 58
----------------------------------------------------------------------------
Less allowance for loan losses (30) -- -- -- -- (30)
----------------------------------------------------------------------------
Total loans $ 7,455 $174 $768 $4,479 $5,765 $ 18,641
============================================================================
</TABLE>
Source: Offering Circular
<PAGE>
Exhibit XIII
Landis Savings Bank, SSB
Nonperforming Assets
At
September 30, At December 31,
---------------------
1997 1996 1995
------------ ---------------------
(Dollars In Thousands)
Loans not accruing interest $ -- $ - $ --
Accruing loans 90 days or more past due 47 5 --
---------- -------- ---------
Total nonperforming loans 47 5 --
Foreclosed real estate -- - --
---------- -------- ---------
Total nonperforming assets $ 47 $ 5 --
========== ======== =========
Nonperforming assets to total assets 0.19% 0.02% --
========== ======== =========
Source: Offering Circular
<PAGE>
Exhibit XIV
Landis Savings Bank
Analysis of Allowance for Loan Losses
<TABLE>
<CAPTION>
Nine Months Ended Year Ended
September 30, December 31,
1997 1996 1996 1995
-------- ------- ------- -------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Balance at beginning of period $ 8 $ 2 $ 2 $ 2
-------- ------- ------- -------
Loans charged off -- -- -- --
Recoveries -- -- -- --
-------- ------- ------- -------
Net loans charged off -- -- -- --
-------- ------- ------- -------
Provision for loan losses 22 4 6 --
-------- ------- ------- -------
Balance at end of period $ 30 $ 6 $ 8 $ 2
======== ======= ======= =======
Ratio of net charge-offs to average
loans outstanding during the period --% --% --% --%
======== ======= ======= =======
</TABLE>
Source: Offering Circular
<PAGE>
Exhibit XV
Landis Savings Bank
Allocation of Allowance for Loan Losses
<TABLE>
<CAPTION>
At September 30, At December 31,
------------------------------ -----------------------------------------------------------------
1997 1996 1995
------------------------------ ------------------------------- ---------------------------------
Percent of Percent Percent of Percent Percent of Percent
Allowance of Loans Allowance of Loans Allowance of Loans
Amount of to Total to Gross Amount of to Total to Gross Amount of to Total to Gross
Allowance Allowance Loans Allowance Allowance Loans Allowance Allowance Loans
------------------------------ ------------------------------- ---------------------------------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Real estate loans:
One-to-four family residential $ 12 40.00% 87.40% $ 7 87.50% 88.94% $ 2 100.00% 88.56%
Multi-family residential 2 6.67% 1.09% -- -- 1.18% -- -- 1.44%
Commercial 2 6.67% 1.44% -- -- 1.31% -- -- 1.60%
Construction 2 6.67% 1.51% -- -- 0.65% -- -- 0.66%
Home equity lines of credit 10 33.33% 6.35% 1 12.50% 6.21% -- -- 5.69%
Home improvement loans 2 6.67% 1.90% -- -- 1.40% -- -- 1.32%
--------------------------- --------------------------- -----------------------------
Total real estate loans 30 100.00% 99.69% 8 100.00% 99.69% 2 100.00% 99.27%
Other loans:
Loans secured by deposits -- -- 0.31% -- -- 0.31% -- -- 0.73%
--------------------------- --------------------------- -----------------------------
Total allowance for loan losses $ 30 100.00% 100.00% $ 8 100.00% 100.00% $ 2 100.00% 100.00%
=========================== =========================== =============================
</TABLE>
Source: Offering Circular
<PAGE>
Exhibit XVI
Landis Savings Bank, SSB
Investment Portfolio Composition
At At December 31,
September 30, ----------------
1997 1996 1995
---- ---- ----
(in thousands)
Securities available for sale:
U.S. government and agency securities $2,559 $2,148 $1,988
------ ----------------
Securities held to maturity:
Mortgage-backed securities -- -- 24
------ ----------------
Total investment securities 2,559 2,148 2,012
Interest-earning balances in other banks 28 33 32
Federal funds sold 2,325 875 100
Federal Home Loan Bank stock 187 170 157
------ ----------------
Total investments $6,097 $3,026 $2,301
====== ================
Source: Offering Circular
<PAGE>
Exhibit XVII
Landis Savings Bank, SSB
Investment Portfolio Maturity Structure
<TABLE>
<CAPTION>
After One Year After Five Years
One Year or Less Through Five Years Through Ten Years
------------------ ------------------ ------------------
Carrying Average Carrying Average Carrying Average
Value Yield Value Yield Value Yield
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Securities available for sale:
U.S. government and agency securities $ 801 5.39% $1,758 5.77% $ -- --
Other
Interest-earning balances in other banks 26 6.23% -- -- -- --
Federal funds sold 2,325 5.88% -- -- -- --
Federal Home Loan Bank stock -- -- -- -- -- --
------------------ ------------------ ------------------
$3,152 5.75% $1,758 5.77% $ -- --
================== ================== ==================
<CAPTION>
After Ten Years Total
----------------- ------------------
Carrying Average Carrying Average
Value Yield Value Yield
----- ----- ----- -----
<S> <C> <C> <C> <C>
Securities available for sale:
U.S. government and agency securities $ -- -- $2,559 5.65%
Other
Interest-earning balances in other banks -- -- 26 6.23%
Federal funds sold -- -- 2,325 5.88%
Federal Home Loan Bank stock 187 7.25% 187 7.25%
----------------- ------------------
$ 187 7.25% $5,097 5.81%
================= ==================
</TABLE>
Source: Offering Circular
<PAGE>
Exhibit XVIII
Landis Savings Bank, SSB
Deposit Mix
<TABLE>
<CAPTION>
September 30, 1997 December 31, 1996
----------------------------------- ----------------------------------
Weighted Increase Weighted
Average % of (Decrease) Average % of
Amount Rate Total in Amount Amount Rate Total
--------- ----------- ---------- ------------ ------- -------------- ---------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Savings deposits:
Regular passbook 3,994 3.20% 20.27% (340) 4,334 3.05% 23.65%
Money market 4,504 5.37% 22.86% 1,838 2,666 5.58% 14.55%
--------- ----------- ---------- ------------ ------- -------------- ---------
Total demand deposits 8,498 4.35% 43.13% 1,498 7,000 4.01% 38.21%
--------- ----------- ---------- ------------ ------- -------------- ---------
Certificate accounts with original
maturities of (in thousands):
6 months or less 2,899 5.14% 14.71% (989) 3,888 5.32% 21.22%
Over 6 to 12 months 3,319 5.67% 16.85% 1,092 2,227 5.26% 12.15%
Over 12 months 4,985 6.00% 25.30% (222) 5,207 6.26% 28.42%
--------- ----------- ---------- ------------ ------- -------------- ---------
Total certificates 11,203 5.68% 56.87% (119) 11,322 5.74% 61.79%
--------- ----------- ---------- ------------ ------- -------------- ---------
Total deposits 19,701 5.11% 100.00% 1,379 18,322 5.08% 100.00%
========= =========== ========== ============ ======= ============== =========
<CAPTION>
December 31, 1995
-------------------------------
Increase Weighted
(Decrease) Average % of
in Amount Amount Rate Total
----------- ------- ---------- ---------
<S> <C> <C> <C> <C>
Savings deposits:
Regular passbook (1,045) 5,379 3.05% 33.95%
Money market 2,666 0 0.00% 0.00%
----------- ------- ---------- ---------
Total demand deposits 1,621 5,379 3.05% 33.95%
----------- ------- ---------- ---------
Certificate accounts with original
maturities of (in thousands):
6 months or less 465 3,423 5.34% 21.60%
Over 6 to 12 months 350 1,877 5.56% 11.85%
Over 12 months 40 5,167 5.99% 32.61%
----------- ------- ---------- ---------
Total certificates 855 10,467 5.70% 66.05%
----------- ------- ---------- ---------
Total deposits 2,476 15,846 4.80% 100.00%
=========== ======= ========== =========
</TABLE>
<PAGE>
Exhibit XIX
Landis Savings Bank, SSB
Deposit Flows
Nine Months Ended
September 30, Year Ended December 31,
----------------- -----------------------
1997 1996 1996 1995
------ ------ ------ ------
(in thousands)
Deposits $7,709 $6,698 $8,137 $8,191
Withdrawals 7,062 5,076 6,502 8,113
------ ------ ------ ------
Net increase before interest
credited 647 1,622 1,635 78
Interest credited 732 609 841 723
------ ------ ------ ------
Net increase in
savings deposits $1,379 $2,231 $2,476 $ 801
====== ====== ====== ======
Source: Offering Circular
<PAGE>
Exhibit XX
Landis Savings Bank, SSB
Certificate of Deposit Maturity Structure
<TABLE>
<CAPTION>
Maturity
-----------------------------------------------------
Over Over
3 months 3 to 6 6 to 12 Over
or less Months Months 12 Months Total
------- ------ ------ --------- -----
(In Thousands)
<S> <C> <C> <C> <C> <C>
Certificates of $100,000 or more 721 330 1,354 476 2,881
Certificates of less than $100,000 2,248 2,335 1,876 1,863 8,322
----- ----- ----- ----- ------
Total 2,969 2,665 3,230 2,339 11,203
===== ===== ===== ===== ======
</TABLE>
Source: Offering Circular
<PAGE>
<TABLE>
<CAPTION>
Exhibit XXI
Growth in Population, Households Kings
and 1997 Household Income Levels Landis Rowan Grant Cabarrus North United
PSA County PSA County Carolina States
--- ------ --- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C>
Population
1980 Census 17,541 99,186 2,832 85,895 5,881,768 226,545,856
1990 Census 18,781 110,605 5,286 98,935 6,628,637 248,709,872
1997 Estimate 20,784 123,772 8,716 114,769 7,382,905 266,798,176
2002 Projection 22,542 134,512 10,951 126,075 7,871,295 278,178,912
Compound Growth (%)
1980-1990 0.69% 1.10% 6.44% 1.42% 1.20% 0.94%
1990-1997 1.46% 1.62% 7.41% 2.14% 1.55% 1.01%
1997-2002 1.64% 1.68% 4.67% 1.90% 1.29% 0.84%
Households
1980 Census 6,623 35,949 957 30,610 2,043,292 80,389,688
1990 Census 7,498 42,512 1,869 37,515 2,517,026 91,947,408
1997 Estimate 8,521 48,657 3,140 44,751 2,875,279 101,561,672
2002 Projection 9,355 53,650 4,002 49,620 3,108,369 107,323,152
Compound Growth (%)
1980-1990 1.25% 1.69% 6.92% 2.05% 2.11% 1.35%
1990-1997 1.84% 1.95% 7.69% 2.55% 1.92% 1.43%
1997-2002 1.89% 1.97% 4.97% 2.09% 1.57% 1.11%
Occupied Units 7,498 42,512 1,869 37,515 2,517,026 91,947,416
Owner Occupied 73.82% 73.57% 90.67% 73.66% 68.01% 64.19%
Renter Occupied 26.18% 26.43% 9.33% 26.34% 31.99% 35.81%
1990 persons per household 2.47 2.52 2.83 2.59 2.54 2.63
1997 Estimated Households by Income
$150,000 1.32% 1.98% 7.36% 3.60% 3.80% 4.49%
$100,000-$149,000 1.84% 2.54% 4.17% 4.32% 4.12% 5.43%
$75,000-$99,000 2.66% 4.00% 12.98% 6.70% 5.83% 7.58%
$50,000-$74,999 15.86% 17.19% 27.45% 21.94% 17.00% 19.09%
$35,000-$49,999 18.95% 19.38% 19.56% 19.10% 16.86% 16.63%
$25,000-$34,999 15.84% 16.88% 9.09% 13.10% 14.57% 13.29%
$15,000-$24,999 18.48% 16.28% 9.80% 14.23% 16.35% 14.32%
$5,000-$14,999 21.82% 17.88% 7.98% 13.66% 15.96% 14.52%
Under $5,000 3.25% 3.87% 1.61% 3.35% 5.51% 4.65%
</TABLE>
<PAGE>
Exhibit XXII
Income Levels, Marital Status
and Population by Age
<TABLE>
<CAPTION>
Kings
Landis Rowan Grant Cabarrus North United
PSA County PSA County Carolina States
--- ------ --- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C>
Income Levels
1997 Est. Average HH Income $ 37,570 $ 42,301 $ 71,493 $ 53,014 $ 49,753 $ 55,449
1997 Est. Median HH Income $ 29,075 $ 32,093 $ 51,796 $ 39,450 $ 33,358 $ 37,916
1997 Est. Per Capita Income $ 15,592 $ 17,080 $ 25,759 $ 20,932 $ 19,738 $ 21,464
Marital Status 15,187 88,585 4,084 79,168 5,293,221 195,142,016
Single Male 9.99% 11.90% 10.75% 11.65% 13.73% 14.76%
Single Female 8.08% 9.18% 8.79% 9.17% 11.40% 12.17%
Married 58.72% 58.83% 68.28% 60.84% 56.30% 54.79%
Previously Married Male 7.03% 6.49% 4.80% 5.61% 5.73% 5.76%
Previously Married Female 16.18% 13.59% 7.40% 12.74% 12.84% 12.52%
Households with Children 2,476 15,033 830 13,886 921,516 33,587,136
Married Couple Family 72.76% 74.58% 87.40% 77.42% 72.69% 73.35%
Other Family-Male Head 5.50% 4.85% 2.30% 4.41% 4.38% 4.82%
Other Family-Female Head 20.51% 19.49% 9.03% 17.11% 21.97% 20.80%
Non-family 1.22% 1.08% 1.26% 1.07% 0.96% 1.03%
Median Age 37.87 36.57 34.32 36.27 35.35 34.96
Average Age 39.50 37.63 33.48 36.96 36.48 36.16
Population (16+) by Occupation 8,919 54,730 3,059 51,808 3,238,414 115,681,224
Executive and Managerial 6.92% 8.13% 12.52% 10.51% 10.28% 12.30%
Professional Specialty 7.62% 9.37% 10.95% 9.72% 11.98% 14.10%
Technical Support 2.37% 2.80% 6.86% 3.50% 3.47% 3.68%
Sales 9.96% 10.10% 13.04% 11.25% 11.30% 11.79%
Administrative Support 12.69% 12.69% 15.55% 15.13% 14.03% 16.27%
Service: Private Household 0.16% 0.21% 0.36% 0.22% 0.37% 0.45%
Service: Protective 1.41% 1.35% 1.04% 1.64% 1.42% 1.72%
Service: Other 7.80% 10.28% 10.36% 8.54% 9.64% 11.05%
Farming, Forestry & Fishing 1.13% 0.17% 1.48% 1.26% 2.59% 2.45%
Precision Production & Craft 17.53% 15.40% 12.23% 15.20% 13.27% 11.32%
Machine Operator 21.37% 17.49% 8.22% 12.78% 12.72% 6.83%
Transportation & Material Moving 4.60% 5.10% 4.06% 5.14% 4.33% 4.09%
Laborers 6.40% 5.38% 3.33% 5.11% 4.60% 3.94%
</TABLE>
<PAGE>
Exhibit XXIII
Occupation and Education of Population
and Property Values
<TABLE>
<CAPTION>
Kings
Landis Rowan Grant Cabarrus North United
PSA County PSA County Carolina States
--- ------ --- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C>
Population by Education
Elementary (0-8) 21.67% 13.56% 3.49% 13.61% 12.69% 10.39%
Some High School (9-11) 23.01% 20.42% 11.97% 18.97% 17.35% 14.38%
High School Graduate (12) 29.44% 32.16% 27.19% 30.39% 28.98% 29.99%
Some College-No Degree 13.17% 15.01% 22.76% 17.07% 16.78% 18.74%
Associate Degree Only 5.86% 7.14% 9.51% 7.66% 6.82% 6.16%
Bachelor Degree Only 4.83% 8.30% 18.81% 8.94% 11.99% 13.11%
Graduate Degree 2.02% 3.42% 6.27% 3.37% 5.38% 7.22%
Owner Occupied Property Values
Under $25,000 6.02% 4.39% 0.85% 3.08% 4.41% 4.24%
$25,000 to $49,999 37.89% 25.59% 2.71% 16.65% 14.95% 12.48%
$50,000 to $74,999 28.75% 31.16% 0.06% 23.65% 23.41% 17.79%
$75,000 to $99,999 15.09% 19.07% 14.05% 20.60% 20.75% 17.03%
$100,000 to $149,999 10.00% 14.37% 34.83% 22.26% 21.21% 20.72%
$150,000 to $199,999 1.56% 3.34% 19.57% 7.74% 7.76% 11.19%
$200,000 to $299,999 6.10% 4.60% 17.52% 4.92% 5.08% 9.51%
$300,000+ 0.09% 0.47% 4.33% 1.10% 2.43% 7.04%
Median Property Value $ 56,483 $ 68,691 $ 137,091 $ 87,447 $ 91,815 $ 122,334
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit XXIV
Landis Savings Landis PSA Kings Grant PSA
PSA Financial Services ---------- ---------------
($Millions) % Per HH ($) ($Millions) % Per HH ($)
----------- - ---------- ----------- - ----------
<S> <C> <C> <C> <C> <C> <C>
No-Interest Checking $ 6.61 1.47% 775.73 $ 3.54 0.95% 1,127.39
Interest Checking 22.21 4.93% 2,606.50 14.80 3.99% 4,713.38
Asset Management 5.64 1.25% 661.89 6.01 1.62% 1,914.01
------- --------- ---------- --------- --------- -----------
Total Demand Deposits 34.46 7.65% 4,044.13 24.35 6.56% 7,754.78
Regular & Passbook Savings 28.82 6.39% 3,382.23 19.64 5.29% 6,254.78
Money Market Deposits 18.99 4.21% 2,228.61 16.31 4.39% 5,194.27
Short & Long Term Cds 46.14 10.24% 5,414.86 24.29 6.54% 7,735.67
IRA's 79.71 17.69% 9,354.54 83.39 22.47% 26,557.32
401(K) and 403(B) 63.56 14.10% 7,459.22 76.56 20.63% 24,382.17
SEP/Keogh 13.25 2.94% 1,554.98 9.56 2.58% 3,044.59
------- --------- ---------- --------- --------- -----------
Total Savings & Investments 250.47 55.57% 29,394.44 229.75 61.90% 73,168.79
Stocks 58.86 13.06% 6,907.64 50.78 13.68% 16,171.97
Municipal Bonds 15.83 3.51% 1,857.76 10.30 2.78% 3,280.25
U.S. Savings Bonds 16.68 3.70% 1,957.52 7.00 1.89% 2,229.30
Mutual Funds 74.42 16.51% 8,733.72 48.99 13.20% 15,601.91
------- --------- ---------- --------- --------- -----------
Other Investments 165.79 36.78% 19,456.64 117.07 31.54% 37,283.44
Total Assets 450.72 100.00% 52,895.20 371.17 100.00% 118,207.01
======= ========= ========== ========= ========= ===========
1st Mtg., Primary Residence/Fixed Rate 71.53 40.69% 8,394.55 84.49 51.72% 26,907.64
1st Mtg., Primary Residence/Variable 21.97 12.50% 2,578.34 22.09 13.52% 7,035.03
Home Equity Line of Credit 5.71 3.25% 670.11 6.51 3.99% 2,073.25
1st Mortgage, Other Property 11.67 6.64% 1,369.56 15.46 9.46% 4,923.57
2nd Mortgage, Primary Residence 7.03 4.00% 825.02 7.16 4.38% 2,280.25
------- --------- ---------- --------- --------- -----------
Total Mortgage Loans 117.91 67.08% 13,837.58 135.71 83.08% 43,219.75
Personal Auto Loan 35.84 20.39% 4,206.08 16.44 10.06% 5,235.67
Sales Finance 1.99 1.13% 233.54 0.62 0.38% 197.45
Educational 4.10 2.33% 481.16 1.98 1.21% 630.57
------- --------- ---------- --------- --------- -----------
Total Installment Loans 41.93 23.85% 4,920.78 19.04 11.66% 6,063.69
Credit Card Loans 14.23 8.10% 1,669.99 7.34 4.49% 2,337.58
Unsecured Loans 1.71 0.97% 200.68 1.26 0.77% 401.27
------- --------- ---------- --------- --------- -----------
Total Revolving Loans & Credit Card 15.94 9.07% 1,870.67 8.60 5.26% 2,738.85
Total Loans $175.78 100.00% 20,629.03 163.35 100.00% 52,022.29
======= ========= ========== ========= ========= ===========
1997 Population 20,784 8,716
1997 Households 8,521 3,140
</TABLE>
<PAGE>
Exhibit XXV
Construction Activity in Rowan County
<TABLE>
<CAPTION>
7 Mths
1991 1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Residential Construction
Single Family Units 391 422 436 513 534 690 388
Single Family Costs ($) 38,694,562 41,800,237 40,939,191 50,537,045 52,138,425 79,409,570 45,503,400
Multi-Family Units 34 190 26 49 91 21 69
Multi-Family Costs ($) 1,202,023 7,404,000 723,000 1,942,100 2,498,000 1,355,000 4,735,000
Res. Additions & Alter. Units 322 295 259 282 328 282 220
Res. Additions & Alter. Cost ($) 7,638,456 4,714,756 4,223,741 4,232,274 5,729,007 5,268,452 4,525,856
Total Residential Units 747 907 721 844 953 993 677
Total Residential Costs ($) 47,535,041 53,918,993 45,885,932 56,711,419 60,365,432 86,033,022 54,764,256
Non-Residential Construction
Non-residential Units 410 481 416 465 402 486 275
Non-residential Costs ($) 32,701,932 42,741,907 47,952,434 37,990,006 26,384,141 66,745,415 18,514,475
Non-Res. Add. & Alter. Units 58 113 136 89 104 99 114
Non-Res. Add. & Alter. Cost ($) 4,468,708 6,860,252 9,589,453 4,831,270 4,469,767 7,157,367 5,713,199
Total Non-res. Construction Units 468 594 552 554 506 585 389
Total Non-res. Construction ($) 37,170,640 49,602,159 57,541,887 42,821,276 30,853,908 73,902,782 24,227,674
</TABLE>
Source: Department of Labor, State of North Carolina, Raleigh, North Carolina
<PAGE>
Exhibit XXV
Construction Activity in Cabarrus County
<TABLE>
<CAPTION>
7 Mths
1991 1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Residential Construction
Single Family Units 688 746 844 1,067 1,144 1,296 1,098
Single Family Costs ($) 48,503,448 55,791,042 67,427,739 93,186,372 100,802,913 119,225,265 102,692,134
Multi-Family Units 172 32 86 218 167 616 244
Multi-Family Costs ($) 4,281,155 565,000 2,298,784 4,344,000 2,502,000 25,141,680 5,733,000
Res. Additions & Alter. Units 362 428 445 468 452 370 158
Res. Additions & Alter. Cost ($) 3,124,918 3,864,083 4,453,886 4,573,273 4,465,621 4,032,334 1,929,592
Total Residential Units 1,222 1,206 1,375 1,753 1,763 2,282 1,500
Total Residential Costs ($) 55,909,521 60,220,125 74,180,409 102,103,645 107,770,534 148,399,279 110,354,726
Non-Residential Construction
Non-residential Units 553 528 521 516 691 520 297
Non-residential Costs ($) 38,754,683 24,185,228 39,862,680 35,436,289 58,113,781 73,849,424 76,983,890
Non-Res. Add. & Alter. Units 165 217 144 162 150 144 117
Non-Res. Add. & Alter. Cost ($) 2,000,276 4,593,235 2,463,732 4,515,229 9,428,360 8,778,787 5,160,826
Total Non-res. Construction Units 718 745 665 678 841 664 414
Total Non-res. Construction ($) 40,754,959 28,778,463 42,326,412 39,951,518 67,542,141 82,628,211 82,144,716
</TABLE>
Source: Department of Labor, State of North Carolina, Raleigh, North Carolina
<PAGE>
Exhibit XXVI
Labor Force and Employment Information
1990-1996 Annual Averages
<TABLE>
<CAPTION>
Jan Feb Mar Apr May Jun Jul Aug
--- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Rowan County 63,360 63,210 63,700 63,630 63,810 64,110 64,770 64,450
Labor Force 61,200 61,320 62,020 62,100 62,120 62,050 62,930 62,360
Employment 2,160 1,890 1,680 1,530 1,690 2,060 1,840 2,090
Unemployment Rate 3.4% 3.0% 2.6% 2.4% 2.6% 3.2% 2.8% 3.2%
Cabarrus County 61,790 62,050 62,250 62,310 62,290 62,640 63,230 62,660
Labor Force 59,780 59,890 60,580 60,660 60,680 60,610 61,470 60,910
Employment 2,010 2,160 1,670 1,650 1,610 2,030 1,760 1,750
Unemployment Rate 3.3% 3.5% 2.7% 2.6% 2.6% 3.2% 2.8% 2.8%
North Carolina 3,748,300 3,756,400 3,776,400 3,782,300 3,816,600 3,858,800 3,892,900 3,849,900
Labor Force 3,582,800 3,600,100 3,644,000 3,669,600 3,687,000 3,705,400 3,738,100 3,704,400
Employment 165,500 156,300 132,400 112,700 129,600 153,400 154,800 145,500
Unemployment Rate 4.4% 4.2% 3.5% 3.0% 3.4% 4.0% 4.0% 3.8%
United States 134,317,000 134,535,000 135,524,000 135,180,000 135,963,000 137,557,000 138,331,000 137,460,000
Labor Force 126,384,000 126,887,000 128,125,000 128,629,000 129,565,000 130,463,000 131,350,000 130,865,000
Employment 7,933,000 7,647,000 7,399,000 6,551,000 6,398,000 7,094,000 6,981,000 6,594,000
Unemployment Rate 5.9% 5.7% 5.5% 4.8% 4.7% 5.2% 5.0% 4.8%
</TABLE>
Sept Oct
---- ---
Rowan County 63,580 63,980
Labor Force 61,770 62,080
Employment 1,810 1,900
Unemployment Rate 2.8% 3.0%
Cabarrus County 61,960 62,160
Labor Force 60,340 60,640
Employment 1,620 1,520
Unemployment Rate 2.6% 2.4%
North Carolina 3,812,700 3,819,300
Labor Force 3,684,000 3,697,200
Employment 128,700 122,100
Unemployment Rate 3.4% 3.2%
United States 136,375,000 136,665,000
Labor Force 129,972,000 130,671,000
Employment 6,403,000 5,995,000
Unemployment Rate 4.7% 4.4%
Source: North Carolina Employment & Securities Exchange Commission
<PAGE>
Exhibit XXVI
Labor Force and Employment Information
1990-1996 Annual Averages
<TABLE>
<CAPTION>
1990 1991 1992 1993 1994 1995 1996
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Rowan County
- ------------
Labor Force 58,370 57,980 58,000 58,330 59,400 60,380 63,520
Employment 56,060 54,780 54,840 56,000 57,490 58,180 61,250
Unemployment 2,310 3,200 3,160 2,330 1,910 2,200 2,270
Rate (%) 4.0% 5.5% 5.4% 4.0% 3.2% 3.6% 3.6%
Cabarrus County
- ---------------
Labor Force 55,260 55,210 56,260 56,620 57,620 58,870 61,890
Employment 53,230 52,460 52,970 54,210 55,730 56,830 59,830
Unemployment 2,030 2,750 3,290 2,410 1,890 2,040 2,060
Rate (%) 3.7% 5.0% 5.8% 4.3% 3.3% 3.5% 3.3%
North Carolina
- --------------
Labor Force 3,468,300 3,512,400 3,547,800 3,556,600 3,597,000 3,639,500 3,796,200
Employment 3,324,000 3,307,700 3,334,500 3,381,000 3,439,900 3,481,800 3,631,300
Unemployment 144,300 204,700 213,300 175,600 157,100 157,700 164,900
Rate (%) 4.2% 5.8% 6.0% 4.9% 4.4% 4.3% 4.3%
United States
- -------------
Labor Force 124,787,000 125,303,000 126,982,000 128,040,000 131,056,000 132,304,000 133,943,000
Employment 117,914,000 116,877,000 117,598,000 119,306,000 123,060,000 124,900,000 126,708,000
Unemployment 6,874,000 8,426,000 9,384,000 8,734,000 7,996,000 7,404,000 7,236,000
Rate (%) 5.5% 6.7% 7.4% 6.8% 6.1% 5.6% 5.4%
</TABLE>
Source: North Carolina Employment & Securities Exchange Commission
<PAGE>
Exhibit XXVII
Deposit Market
Cabarrus and Rowan Counties
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992
INST. NAME/ADDRESS ($000) % Mkt. ($000) % Mkt. ($000) % Mkt. ($000) % Mkt. ($000) % Mkt.
- ------------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Central Carolina B&T 8,498 16.19 7,489 15.18 6,503 13.93 5,630 12.61 6,039 13.34
600 South Main Street 8,498 16.19 7,489 15.18 6,503 13.93 5,630 12.61 6,039 13.34
First Charter 27,009 51.46 25,936 52.58 24,754 53.02 23,562 52.76 24,015 53.05
139 S. Cebtral Ave, 27,009 51.46 25,936 52.58 24,754 53.02 23,562 52.76 24,015 53.05
Landis Savings Bank 16,977 32.35 15,900 32.24 15,427 33.05 15,471 34.64 15,213 33.61
107 South Central Avenue 16,977 32.35 15,900 32.24 15,427 33.05 15,471 34.64 15,213 33.61
Landis Total
3 branches Bank Total 52,484 100.00 49,325 100.00 46,684 100.00 44,663 100.00 45,267 100.00
3 T O T A L Market 52,484 100.00 49,325 100.00 46,684 100.00 44,663 100.00 45,267 100.00
Rowan County
36 branches Bank Total 963,405 96.59 946,976 96.89 934,404 96.78 978,980 97.18 968,581 97.28
3 branches CU Total 33,979 3.41 30,430 3.11 31,088 3.22 28,383 2.82 27,133 2.72
39 T O T A L Market 997,384 100.00 977,406 100.00 965,492 100.00 1,007,363 100.00 995,714 100.00
City of Concord*
19 branches Bank Total 553,585 99.74 585,163 99.76 607,279 99.78 587,240 99.80 586,962 99.81
1 branches CU Total 1,427 0.26 1,398 0.24 1,350 0.22 1,178 0.20 1,139 0.19
20 T O T A L Market 555,012 100.00 586,561 100.00 608,629 100.00 588,418 100.00 588,101 100.00
Adjusted Market Total* 525,878 518,477 523,596 517,939 509,090
Carbarrus County*
37 branches Bank Total 1,068,883 96.51 1,033,728 96.53 1,012,808 96.45 991,890 96.31 1,006,988 94.92
1 branches S&L Total 0 0.00 0 0.00 0 0.00 0 0.00 12,578 1.19
2 branches CU Total 38,664 3.49 37,153 3.47 37,229 3.55 38,017 3.69 41,295 3.89
40 T O T A L Market 1,107,547 100.00 1,070,881 100.00 1,050,037 100.00 1,029,907 100.00 1,060,861 100.00
Adjusted Market Total 1,078,413 1,002,797 965,004 959,428 981,850
Compound Growth Rates
Landis 3.77%
Rowan County 0.04%
Concord 0.81%
Cabarrus County 2.37%
</TABLE>
* Excludes First Union Bank, whose deposits declined from $79.0 million to
$29.1 million over the period.
<PAGE>
<TABLE>
<CAPTION>
Exhibit XXVIII
Landis Savings Bank, SSB
North Carolina Bank and Thrift Sales Ann'd Ann'd Ann'd Ann'd Ann'd Seller: Seller: Seller:
Announced 1/1/95-12/05/97 Deal TgBk Prem/ Deal Deal Pr/ Deal Pr/ 1:Total 1:Eqty/ 1:YTD
Value CoreDeps Pr/Bk Tg Bk 4-Qtr Assets Assets ROAA
Buyer Seller ($M) (%) (%) (%) EPS (x) ($000) (%) (%)
- ----- ------ ---- --- --- --- ------- ------ --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Bank Sales
Piedmont BancShares Old North State Bank NA NA NA NA 46,732 8.48 0.75
Triangle Bancorp Village Bank 9.8 9.45 219.92 219.92 32.50 64,308 6.89 0.51
First Charter Corp Bank of Union 32.6 24.03 303.90 308.20 22.90 126,343 8.35 1.17
United Carolina Bncs Triad Bank 39.7 15.21 250.81 250.81 20.44 199,237 7.51 1.00
Centura Banks First Comm'l Holding 54.2 28.85 287.13 288.29 18.63 174,562 10.53 1.67
Centura Banks First Community Bank 28.0 18.10 240.08 240.08 20.83 112,355 10.07 1.27
Centura Banks FirstSouth Bank 40.9 17.96 221.78 234.97 20.16 181,306 9.19 1.14
Fidelity BancShares Perpetual State Bank 11.3 6.21 117.36 117.36 46.97 45,939 20.67 0.52
CCB Financial Corp Salem Trust Bank 41.2 28.77 246.51 246.51 29.75 154,098 8.83 0.92
Triangle Bancorp Granville United Bnk 11.1 11.91 176.36 192.01 24.03 59,342 10.61 0.84
Bank of Granite Corp Carolina State Bank 30.2 21.46 265.21 285.04 21.96 121,568 9.37 0.92
BB&T Corp United Carolina Bncs 980.7 17.59 284.36 295.05 20.84 4,366,324 7.82 1.14
FCFT, Inc Blue Ridge Bank 24.3 17.98 214.76 214.76 22.41 103,156 10.56 1.04
LSB Bancshares Old North State Bank 32.5 24.83 284.12 322.29 26.99 128,497 8.40 0.98
Triangle Bancorp Bank of Mecklenburg 42.0 19.18 217.77 230.34 20.60 259,280 7.04 0.82
First Charter Corp Carolina State Bank 42.2 30.24 336.34 356.75 35.08 139,014 9.03 0.78
Triangle Bancorp Guaranty State Bncp 35.5 31.77 301.50 301.50 30.67 103,830 10.75 1.15
Thrift Sales
First Union Corp RS Financial Corp 117.8 9.68 161.71 169.19 19.93 809,772 8.52 0.75
United Carolina Bncs Seaboard Svgs Bk SSB 9.4 11.99 158.54 158.54 38.06 47,100 12.59 0.81
First Citizens BcShs Allied Bank Capital 66.3 17.73 186.04 186.04 19.60 268,654 11.59 1.20
Clyde Savings Bank (1) Tryon FS&LA NA NA NA NA NA 116,443 9.16 0.58
First Citizens BcShs First Savings Fin'l 10.6 3.88 102.09 102.09 NA 55,850 16.44 -0.99
FNB Corp. Home Savings Bank 14.5 12.28 150.93 150.93 NA 53,446 17.74 0.96
Southern Bancshares ESB Bncp 6.4 8.30 126.91 126.91 25.30 26,502 19.03 1.98
All Average (Banks and Thrifts) 17.61 220.64 227.16 25.88 323,486 10.80 0.91
Bank Average 20.22 247.99 256.49 25.92 375,641 9.65 0.98
Thrift Average 10.64 147.70 148.95 25.72 196,824 13.58 0.76
Source: SNL Securities, Charlottesville, Virginai
</TABLE>
<PAGE>
Exhibit XXVIII
Landis Savings Bank, SSB
North Carolina Bank and Thrift Sales
Announced 1/1/95-12/05/97
<TABLE>
<CAPTION>
Bank/ Bank/ Announce
Buyer ST Thrift Seller Thrift Date Status
- ----- -- ------ ------ ------ ---- ------
<S> <C> <C> <C> <C> <C> <C>
Bank Sales
Piedmont BancShares NC Bank Old North State Bank Bank 04/15/95 Completed
Triangle Bancorp NC Bank Village Bank Bank 05/04/95 Completed
First Charter Corp NC Bank Bank of Union Bank 09/13/95 Completed
United Carolina Bncs NC Bank Triad Bank Bank 10/19/95 Completed
Centura Banks NC Bank First Comm'l Holding Bank 11/28/95 Completed
Centura Banks NC Bank First Community Bank Bank 03/20/96 Completed
Centura Banks NC Bank FirstSouth Bank Bank 04/18/96 Completed
Fidelity BancShares NC Bank Perpetual State Bank Bank 04/22/96 Completed
CCB Financial Corp NC Bank Salem Trust Bank Bank 05/14/96 Completed
Triangle Bancorp NC Bank Granville United Bnk Bank 06/10/96 Completed
Bank of Granite Corp NC Bank Carolina State Bank Bank 07/25/96 Terminated
BB&T Corp NC Bank United Carolina Bncs Bank 11/04/96 Completed
FCFT, Inc WV Bank Blue Ridge Bank Bank 11/22/96 Completed
LSB Bancshares NC Bank Old North State Bank Bank 01/21/97 Completed
Triangle Bancorp NC Bank Bank of Mecklenburg Bank 03/27/97 Completed
First Charter Corp NC Bank Carolina State Bank Bank 06/30/97 Pending
Triangle Bancorp NC Bank Guaranty State Bncp Bank 10/16/97 Pending
Thrift Sales
First Union Corp NC Bank RS Financial Corp Thrift 05/30/95 Completed
United Carolina Bncs NC Bank Seaboard Svgs Bk SSB Thrift 07/24/95 Completed
First Citizens BcShs NC Bank Allied Bank Capital Thrift 08/07/95 Completed
Clyde Savings Bank (1) NC Thrift Tryon FS&LA Thrift 06/12/96 Completed
First Citizens BcShs NC Bank First Savings Fin'l Thrift 04/03/97 Completed
FNB Corp. NC Bank Home Savings Bank Thrift 06/03/97 Pending
Southern Bancshares NC Bank ESB Bncp Thrift 11/21/97 NonBinding
</TABLE>
(1) Mutual to mutual merger not in averages
Source: SNL Securities, Charlottesville, Virginia
<PAGE>
Exhibit XXIX
Interest Rate History
Landis Savings Bank, SSB
<TABLE>
<CAPTION>
FED PRIME FHA 30 YEAR THREE MO. ONE YEAR THIRTY YEAR
FUNDS RATE MTG T-BILLS TREASURY TREASURY
----- ----- ----------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
1994
First Quarter Avg. 3.21% 6.02% 7.39% 3.24% 3.91% 6.56%
Second Qtr. Avg. 3.94% 6.90% 8.61% 3.99% 5.13% 7.36%
Third Qtr. Avg 4.49% 7.50% 8.78% 4.48% 5.60% 7.59%
Fourth Qtr. Avg. 5.17% 8.13% 9.29% 5.28% 6.60% 7.96%
1995
First Quarter Avg. 5.81% 8.83% 9.23% 5.74% 6.73% 7.64%
Second Qtr. Avg. 6.02% 9.00% 8.40% 5.60% 5.97% 6.96%
Third Qtr. Avg 5.80% 8.77% 8.04% 5.37% 5.65% 6.71%
Fourth Qtr. Avg. 5.72% 8.72% 7.72% 5.26% 5.44% 6.23%
1996
First Quarter Avg. 5.36% 8.33% 7.40% 4.93% 5.12% 6.30%
Second Qtr. Avg. 5.24% 8.25% 8.39% 5.02% 5.66% 6.93%
Third Qtr. Avg 5.31% 8.25% 8.56% 5.10% 5.78% 6.97%
Fourth Qtr. Avg. 5.28% 8.25% 8.23% 4.98% 5.48% 6.61%
1997
Jan. 5.25% 8.25% 8.06% 5.03% 5.61% 6.83%
Feb. 5.19% 8.25% 8.06% 5.01% 5.53% 6.69%
Mar. 5.39% 8.30% 8.08% 5.14% 5.80% 6.93%
First Qtr. Avg. 5.28% 8.27% 8.07% 5.06% 5.65% 6.82%
Apr. 5.51% 8.50% 8.55% 5.16% 5.99% 7.09%
May 5.50% 8.50% 8.56% 5.05% 5.87% 6.94%
Jun. 5.56% 8.50% 8.05% 4.93% 5.69% 6.77%
Second Qtr. Avg. 5.52% 8.50% 8.39% 5.05% 5.85% 6.93%
Jul. 5.52% 8.50% 8.02% 5.05% 5.54% 6.51%
Aug. 5.54% 8.50% 7.61% 5.14% 5.56% 6.58%
Sep. 5.54% 8.50% 8.02% 4.95% 5.52% 6.50%
Third Qtr. Avg 5.53% 8.50% 7.88% 5.05% 5.54% 6.53%
Oct. 5.50% 8.50% 4.97% 5.46% 6.33%
Nov. 5.52% 8.50% 5.14% 5.46% 6.11%
Dec.(12/16) 5.56% 8.50% 5.07% 5.47% 5.96%
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets
M&A Dep MstRctQtr Market Value
Ticker Company Name Exchange Target? Ins. State Region ($000) ($M)
------ ------------ -------- ------- ---- ----- ------ ----------- ------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
FBCV 1ST Bancorp NASDAQ No SAIF IN MW 64,327 28.53
FBER 1st Bergen Bancorp NASDAQ No SAIF NJ MA 22,595 54.43
ABBK Abington Bancorp, Inc. NASDAQ No BIF MA NE 42,870 67.06
ANA Acadiana Bancshares, Inc. AMSE No SAIF LA SW 11,874 62.43
AABC Access Anytime Bancorp, Inc. NASDAQ No SAIF NM SW 40,103 12.83
AFCB Affiliated Community Bancorp, Inc. NASDAQ No SAIF MA NE 14,467 196.57
AFED AFSALA Bancorp, Inc. NASDAQ No SAIF NY MA 28,109 26.55
AHM Ahmanson & Company (H.F.) NYSE No SAIF CA WE 6,453 5,865.30
ALBK ALBANK Financial Corporation NASDAQ No SAIF NY MA 46,938 589.16
ALBC Albion Banc Corp. NASDAQ No SAIF NY MA 5,274 7.00
ABCL Alliance Bancorp, Inc. NASDAQ No SAIF IL MW 60,464 220.58
AMFC AMB Financial Corp. NASDAQ No SAIF IN MW 37,852 15.42
ASBI Ameriana Bancorp NASDAQ No SAIF IN MW 65,348 63.82
BKC American Bank of Connecticut AMSE No BIF CT NE 20,099 110.17
ATSB AmTrust Capital Corp. NASDAQ No SAIF IN MW 4,149 7.37
ABCW Anchor BanCorp Wisconsin, Inc. NASDAQ No SAIF WI MW 54,205 290.87
ANDB Andover Bancorp, Inc. NASDAQ No BIF MA NE 35,417 197.73
ASBP ASB Financial Corp. NASDAQ No SAIF OH MW 46,913 22.11
ASFC Astoria Financial Corporation NASDAQ No SAIF NY MA 40,043 1,162.46
BKCT Bancorp Connecticut, Inc. NASDAQ No BIF CT NE 30,584 117.02
BNKU Bank United Corporation NASDAQ No SAIF TX SW 39,520 1,366.51
BWFC Bank West Financial Corporation NASDAQ No SAIF MI MW 33,782 39.45
BANC BankAtlantic Bancorp, Inc. NASDAQ No SAIF FL SE 26,948 308.91
BKUNA BankUnited Financial Corporation NASDAQ No SAIF FL SE 48,254 122.73
BVCC Bay View Capital Corporation NASDAQ No SAIF CA WE 16,479 436.30
BFSB Bedford Bancshares, Inc. NASDAQ No SAIF VA SE 8,107 32.27
CBCI Calumet Bancorp, Inc. NASDAQ No SAIF IL MW 29,594 101.71
CMRN Cameron Financial Corporation NASDAQ No SAIF MO MW 15,896 52.52
CASB Cascade Financial Corporation NASDAQ No SAIF WA WE 33,235 43.18
CATB Catskill Financial Corporation NASDAQ No BIF NY MA 27,475 83.83
CBES CBES Bancorp, Inc. NASDAQ No SAIF MO MW 41,099 20.63
CNIT CENIT Bancorp, Inc. NASDAQ No SAIF VA SE 46,348 113.33
CEBK Central Co-operative Bank NASDAQ No BIF MA NE 30,744 50.60
CFSB CFSB Bancorp, Inc. NASDAQ No SAIF MI MW 7,994 177.17
COFI Charter One Financial, Inc. NASDAQ No SAIF OH MW 58,177 3,969.55
CVAL Chester Valley Bancorp Inc. NASDAQ No SAIF PA MA 60,177 59.11
CTZN CitFed Bancorp, Inc. NASDAQ No SAIF OH MW 17,754 470.68
CKFB CKF Bancorp, Inc. NASDAQ No SAIF KY MW 59,868 16.71
CLAS Classic Bancshares, Inc. NASDAQ No SAIF KY MW 1,114 21.45
CFCP Coastal Financial Corporation NASDAQ No SAIF SC SE 35,251 103.39
CFB Commercial Federal Corporation NYSE No SAIF NE MW 63,719 1,087.68
CMSB Commonwealth Bancorp, Inc. NASDAQ No SAIF PA MA 49,875 343.17
CFTP Community Federal Bancorp, Inc. NASDAQ No SAIF MS SE 19,345 87.95
CFFC Community Financial Corporation NASDAQ No SAIF VA SE 52,206 35.12
CIBI Community Investors Bancorp, Inc. NASDAQ No SAIF OH MW 28,792 14.78
CMSV Community Savings (MHC) NASDAQ No SAIF FL SE 26,954 108.25
COOP Cooperative Bankshares, Inc. NASDAQ No SAIF NC SE 31,855 55.94
CRZY Crazy Woman Creek Bancorp, Incorporated NASDAQ No SAIF WY WE 59,952 14.68
DNFC D & N Financial Corporation NASDAQ No SAIF MI MW 50,133 212.29
DME Dime Bancorp, Incorporated NYSE No BIF NY MA 14,941 2,562.67
DIME Dime Community Bancorp, Inc. NASDAQ No BIF NY MA 9,100 315.62
DIBK Dime Financial Corporation NASDAQ No BIF CT NE 4,006 160.03
DSL Downey Financial Corp. NYSE No SAIF CA WE 21,264 770.86
EBSI Eagle Bancshares, Inc. NASDAQ No SAIF GA SE 20,738 109.70
ETFS East Texas Financial Services, Inc. NASDAQ No SAIF TX SW 50,413 20.53
ESBK Elmira Savings Bank, FSB NASDAQ No BIF NY MA 31,660 21.54
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets
M&A Dep MstRctQtr Market Value
Ticker Company Name Exchange Target? Ins. State Region ($000) ($M)
------ ------------ -------- ------- ---- ----- ------ ----------- ------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
EFBI Enterprise Federal Bancorp, Inc. NASDAQ No SAIF OH MW 12,744 53.87
EQSB Equitable Federal Savings Bank NASDAQ No SAIF MD MA 46,053 27.10
FCBF FCB Financial Corp. NASDAQ No SAIF WI MW 64,239 110.08
FOBC Fed One Bancorp, Inc. NASDAQ No SAIF WV SE 30,041 61.12
FFBS FFBS BanCorp, Inc. NASDAQ No SAIF MS SE 3,880 35.38
FFDF FFD Financial Corporation NASDAQ No SAIF OH MW 22,684 27.09
FFLC FFLC Bancorp, Inc. NASDAQ No SAIF FL SE 55,702 87.24
FFFC FFVA Financial Corporation NASDAQ No SAIF VA SE 42,978 152.68
FFWC FFW Corporation NASDAQ No SAIF IN MW 50,396 28.00
FFYF FFY Financial Corp. NASDAQ No SAIF OH MW 21,150 125.49
FSBI Fidelity Bancorp, Inc. NASDAQ No SAIF PA MA 53,271 41.40
FBCI Fidelity Bancorp, Inc. NASDAQ No SAIF IL MW 39,110 65.51
FFED Fidelity Federal Bancorp NASDAQ No SAIF IN MW 38,728 29.31
FFOH Fidelity Financial of Ohio, Inc. NASDAQ No SAIF OH MW 4,416 88.58
FIBC Financial Bancorp, Inc. NASDAQ No SAIF NY MA 34,812 42.32
FBSI First Bancshares, Inc. NASDAQ No SAIF MO MW 31,683 27.72
FBBC First Bell Bancorp, Inc. NASDAQ No SAIF PA MA 25,855 113.94
FSTC First Citizens Corporation NASDAQ No SAIF GA SE 9,517 74.08
FFBA First Colorado Bancorp, Inc. NASDAQ No SAIF CO SW 5,277 398.78
FDEF First Defiance Financial Corp. NASDAQ No SAIF OH MW 50,076 139.95
FESX First Essex Bancorp, Inc. NASDAQ No BIF MA NE 30,050 154.30
FFBZ First Federal Bancorp, Inc. NASDAQ No SAIF OH MW 7,095 30.32
BDJI First Federal Bancorporation NASDAQ No SAIF MN MW 45,956 18.83
FFBH First Federal Bancshares of Arkansas, Inc. NASDAQ No SAIF AR SE 22,831 105.57
FTFC First Federal Capital Corp. NASDAQ No SAIF WI MW 52,344 274.95
FFKY First Federal Financial Corporation of KentuckyNASDAQ No SAIF KY MW 54,905 92.77
FFES First Federal Savings & Loan of East Hartford NASDAQ No SAIF CT NE 4,376 99.24
FFSX First Federal Savings Bank of Siouxland (MHC) NASDAQ No SAIF IA MW 63,634 91.37
FFCH First Financial Holdings Inc. NASDAQ No SAIF SC SE 8,995 312.04
FFHS First Franklin Corporation NASDAQ No SAIF OH MW 34,581 31.59
FGHC First Georgia Holding, Inc. NASDAQ No SAIF GA SE 25,311 25.18
FSPG First Home Bancorp, Inc. NASDAQ No SAIF NJ MA 804 64.33
FFSL First Independence Corporation NASDAQ No SAIF KS MW 46,987 14.67
FISB First Indiana Corporation NASDAQ No SAIF IN MW 39,793 281.20
FKFS First Keystone Financial, Inc. NASDAQ No SAIF PA MA 45,750 40.84
FLKY First Lancaster Bancshares, Inc. NASDAQ No SAIF KY MW 47,184 14.98
FLFC First Liberty Financial Corp. NASDAQ No SAIF GA SE 43,735 227.08
CASH First Midwest Financial, Inc. NASDAQ No SAIF IA MW 11,373 55.33
FMSB First Mutual Savings Bank NASDAQ No BIF WA WE 57,904 73.72
FNGB First Northern Capital Corporation NASDAQ No SAIF WI MW 1,385 121.63
FFPB First Palm Beach Bancorp, Inc. NASDAQ No SAIF FL SE 38,948 199.39
SOPN First Savings Bancorp, Inc. NASDAQ No SAIF NC SE 33,171 86.88
FWWB First Savings Bank of Washington Bancorp, Inc. NASDAQ No SAIF WA WE 50,039 271.53
SHEN First Shenango Bancorp, Inc. NASDAQ No SAIF PA MA 8,221 69.83
FFDB FirstFed Bancorp, Incorporated NASDAQ No SAIF AL SE 45,392 24.49
FED FirstFed Financial Corp. NYSE No SAIF CA WE 41,415 393.07
FFSW FirstFederal Financial Services Corp NASDAQ No SAIF OH MW 39,556 184.69
FLAG FLAG Financial Corporation NASDAQ No SAIF GA SE 41,855 38.07
FFIC Flushing Financial Corporation NASDAQ No BIF NY MA 42,626 183.62
FMCO FMS Financial Corporation NASDAQ No SAIF NJ MA 57,372 71.63
FBHC Fort Bend Holding Corp. NASDAQ No SAIF TX SW 57,270 32.65
FTSB Fort Thomas Financial Corporation NASDAQ No SAIF KY MW 32,307 22.43
FFHH FSF Financial Corp. NASDAQ No SAIF MN MW 60,455 60.19
GAF GA Financial, Inc. AMSE No SAIF PA MA 15,872 151.52
GUPB GFSB Bancorp, Inc. NASDAQ No SAIF NM SW 44,428 16.21
GBCI Glacier Bancorp, Inc. NASDAQ No SAIF MT WE 49,680 145.74
GFCO Glenway Financial Corp. NASDAQ No SAIF OH MW 31,101 41.07
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets
M&A Dep MstRctQtr Market Value
Ticker Company Name Exchange Target? Ins. State Region ($000) ($M)
------ ------------ -------- ------- ---- ----- ------ ----------- ------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
GDW Golden West Financial Corporation NYSE No SAIF CA WE 37,831 5,300.54
GSBC Great Southern Bancorp, Inc. NASDAQ No SAIF MO MW 6,637 181.69
GSFC Green Street Financial Corp. NASDAQ No SAIF NC SE 46,890 79.52
GPT GreenPoint Financial Corporation NYSE No BIF NY MA 52,321 2,890.76
HALL Hallmark Capital Corp. NASDAQ No SAIF WI MW 25,251 43.29
HRBF Harbor Federal Bancorp, Inc. NASDAQ No SAIF MD MA 20,594 35.14
HARB Harbor Florida Bancorp, Inc. (MHC) NASDAQ No SAIF FL SE 16,912 327.00
HFSA Hardin Bancorp, Inc. NASDAQ No SAIF MO MW 51,828 15.36
HARL Harleysville Savings Bank NASDAQ No SAIF PA MA 17,559 47.36
HFFB Harrodsburg First Financial Bancorp, Inc. NASDAQ No SAIF KY MW 43,413 35.94
HAVN Haven Bancorp, Inc. NASDAQ No SAIF NY MA 63,812 192.99
HBS Haywood Bancshares, Inc. AMSE No BIF NC SE 21,724 26.57
HFFC HF Financial Corp. NASDAQ No SAIF SD MW 50,601 76.38
HFNC HFNC Financial Corp. NASDAQ No SAIF NC SE 14,891 255.74
HIFS Hingham Institution for Savings NASDAQ No BIF MA NE 19,632 36.34
HMNF HMN Financial, Inc. NASDAQ No SAIF MN MW 44,559 107.72
HBFW Home Bancorp NASDAQ No SAIF IN MW 7,182 69.43
HBBI Home Building Bancorp, Inc. NASDAQ No SAIF IN MW 41,746 6.62
HOMF Home Federal Bancorp NASDAQ No SAIF IN MW 38,749 137.91
HWEN Home Financial Bancorp NASDAQ No SAIF IN MW 41,309 7.64
HPBC Home Port Bancorp, Inc. NASDAQ No BIF MA NE 4,406 45.59
HRZB Horizon Financial Corp. NASDAQ No BIF WA WE 6,740 126.01
HZFS Horizon Financial Services Corporation NASDAQ No SAIF IA MW 22,248 9.89
IFSB Independence Federal Savings Bank NASDAQ No SAIF DC MA 54,953 16.97
INBI Industrial Bancorp, Inc. NASDAQ No SAIF OH MW 26,436 92.46
IPSW Ipswich Savings Bank NASDAQ No BIF MA NE 5,901 30.98
ISBF ISB Financial Corporation NASDAQ No SAIF LA SW 38,544 187.62
ITLA ITLA Capital Corporation NASDAQ No BIF CA WE 49,587 141.29
JXVL Jacksonville Bancorp, Inc. NASDAQ No SAIF TX SW 29,574 46.12
JSBA Jefferson Savings Bancorp, Inc. NASDAQ No SAIF MO MW 12,569 214.02
JSB JSB Financial, Inc. NYSE No BIF NY MA 23,740 473.60
KNK Kankakee Bancorp, Inc. AMSE No SAIF IL MW 12,257 48.29
KYF Kentucky First Bancorp, Inc. AMSE No SAIF KY MW 22,553 18.65
KFBI Klamath First Bancorp, Inc. NASDAQ No SAIF OR WE 62,574 222.91
KSAV KS Bancorp, Inc. NASDAQ No SAIF NC SE 44,401 19.92
KSBK KSB Bancorp, Inc. NASDAQ No BIF ME NE 18,585 18.88
LVSB Lakeview Financial Corp. NASDAQ No SAIF NJ MA 47,130 112.16
LARK Landmark Bancshares, Inc. NASDAQ No SAIF KS MW 31,128 39.68
LARL Laurel Capital Group, Inc. NASDAQ No SAIF PA MA 13,372 40.15
LSBX Lawrence Savings Bank NASDAQ No BIF MA NE 25,300 61.32
LFBI Little Falls Bancorp, Inc. NASDAQ No SAIF NJ MA 62,281 52.16
LOGN Logansport Financial Corp. NASDAQ No SAIF IN MW 20,265 19.22
LONF London Financial Corporation NASDAQ No SAIF OH MW 38,210 8.11
LISB Long Island Bancorp, Inc. NASDAQ No SAIF NY MA 32,544 1,150.10
LSBI LSB Financial Corp. NASDAQ No BIF IN MW 3,658 24.05
MAFB MAF Bancorp, Inc. NASDAQ No SAIF IL MW 28,251 498.36
MARN Marion Capital Holdings, Inc. NASDAQ No SAIF IN MW 48,750 47.56
MFSL Maryland Federal Bancorp, Inc. NASDAQ No SAIF MD MA 60,894 173.81
MASB MASSBANK Corp. NASDAQ No BIF MA NE 15,253 161.61
MFLR Mayflower Co-operative Bank NASDAQ No BIF MA NE 63,497 22.04
MBLF MBLA Financial Corp. NASDAQ No SAIF MO MW 27,405 34.22
MECH Mechanics Savings Bank NASDAQ No BIF CT NE 44,309 140.27
MWBX MetroWest Bank NASDAQ No BIF MA NE 61,472 124.74
MFBC MFB Corp. NASDAQ No SAIF IN MW 59,313 37.55
MCBN Mid-Coast Bancorp, Inc. NASDAQ No SAIF ME NE 61,473 6.70
MIFC Mid-Iowa Financial Corp. NASDAQ No SAIF IA MW 62,481 19.09
MWBI Midwest Bancshares, Inc. NASDAQ No SAIF IA MW 18,778 18.83
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets
M&A Dep MstRctQtr Market Value
Ticker Company Name Exchange Target? Ins. State Region ($000) ($M)
------ ------------ -------- ------- ---- ----- ------ ----------- ------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
MFFC Milton Federal Financial Corporation NASDAQ No SAIF OH MW 13,350 34.72
MIVI Mississippi View Holding Company NASDAQ No SAIF MN MW 3,010 12.95
MBSP Mitchell Bancorp, Inc. NASDAQ No SAIF NC SE 34,591 16.64
MBB MSB Bancorp, Inc. AMSE No BIF NY MA 53,095 82.12
MSBF MSB Financial, Inc. NASDAQ No SAIF MI MW 11,478 23.75
NHTB New Hampshire Thrift Bancshares, Inc. NASDAQ No SAIF NH NE 57,194 43.83
NMSB NewMil Bancorp, Inc. NASDAQ No BIF CT NE 55,263 53.21
NASB North American Savings Bank, FSB NASDAQ No SAIF MO MW 15,689 121.04
FFFD North Central Bancshares, Inc. NASDAQ No SAIF IA MW 18,525 60.84
NBN Northeast Bancorp AMSE No BIF ME NE 3,298 40.38
NEIB Northeast Indiana Bancorp, Inc. NASDAQ No SAIF IN MW 59,247 36.14
NWEQ Northwest Equity Corporation NASDAQ No SAIF WI MW 31,418 15.94
OCFC Ocean Financial Corp. NASDAQ No SAIF NJ MA 47,428 299.56
OHSL OHSL Financial Corp. NASDAQ No SAIF OH MW 37,992 34.26
PBHC Oswego City Savings Bank (MHC) NASDAQ No BIF NY MA 61,933 55.58
OFCP Ottawa Financial Corporation NASDAQ No SAIF MI MW 14,998 148.61
PBCI Pamrapo Bancorp, Inc. NASDAQ No SAIF NJ MA 44,278 68.23
PFED Park Bancorp, Inc. NASDAQ No SAIF IL MW 43,443 43.16
PVSA Parkvale Financial Corporation NASDAQ No SAIF PA MA 22,400 145.52
PEEK Peekskill Financial Corporation NASDAQ No SAIF NY MA 50,170 56.68
PFSB PennFed Financial Services, Inc. NASDAQ No SAIF NJ MA 53,230 160.95
PWBC PennFirst Bancorp, Inc. NASDAQ No SAIF PA MA 35,918 97.58
PWBK Pennwood Bancorp, Inc. NASDAQ No SAIF PA MA 47,645 10.86
PFDC Peoples Bancorp NASDAQ No SAIF IN MW 28,457 81.41
PBKB People's Bancshares, Inc. NASDAQ No BIF MA NE 62,091 66.48
PBCT People's Bank (MHC) NASDAQ No BIF CT NE 63,488 2,108.84
PFFC Peoples Financial Corporation NASDAQ No SAIF OH MW 20,950 21.25
PHBK Peoples Heritage Financial Group, Inc. NASDAQ No BIF ME NE 26,771 1,196.29
PERM Permanent Bancorp, Inc. NASDAQ No SAIF IN MW 40,352 55.21
PCBC Perry County Financial Corporation NASDAQ No SAIF MO MW 15,569 19.25
PFFB PFF Bancorp, Inc. NASDAQ No SAIF CA WE 59,562 342.40
PHFC Pittsburgh Home Financial Corp. NASDAQ No SAIF PA MA 11,160 36.93
PFSL Pocahontas Federal Savings & Loan Assoc. (MHC) NASDAQ No SAIF AR SE 55,737 57.13
PTRS Potters Financial Corporation NASDAQ No SAIF OH MW 57,180 15.43
PRBC Prestige Bancorp, Inc. NASDAQ No SAIF PA MA 6,762 17.38
PFNC Progress Financial Corporation NASDAQ No SAIF PA MA 43,530 61.67
PSBK Progressive Bank, Inc. NASDAQ No BIF NY MA 32,649 129.94
PROV Provident Financial Holdings, Inc. NASDAQ No SAIF CA WE 50,810 102.17
PULS Pulse Bancorp, Inc. NASDAQ No SAIF NJ MA 1,728 80.09
PVFC PVF Capital Corp. NASDAQ No SAIF OH MW 55,598 53.75
QCFB QCF Bancorp, Inc. NASDAQ No SAIF MN MW 27,120 39.44
QCBC Quaker City Bancorp, Inc. NASDAQ No SAIF CA WE 60,592 92.29
QCSB Queens County Bancorp, Inc. NASDAQ No BIF NY MA 33,721 543.90
RARB Raritan Bancorp, Inc. NASDAQ No BIF NJ MA 14,046 64.64
REDF RedFed Bancorp Inc. NASDAQ No SAIF CA WE 49,805 143.57
RELY Reliance Bancorp, Inc. NASDAQ No SAIF NY MA 3,137 294.05
SSB Scotland Bancorp, Inc. AMSE No SAIF NC SE 64,399 19.38
SFSL Security First Corp. NASDAQ No SAIF OH MW 25,467 159.10
SFED SFS Bancorp, Inc. NASDAQ No SAIF NY MA 43,021 27.74
SGVB SGV Bancorp, Inc. NASDAQ No SAIF CA WE 15,759 40.41
SISB SIS Bancorp, Inc. NASDAQ No BIF MA NE 11,225 202.31
SKAN Skaneateles Bancorp Inc. NASDAQ No BIF NY MA 51,035 27.26
SOBI Sobieski Bancorp, Inc. NASDAQ No SAIF IN MW 18,743 14.81
SOSA Somerset Savings Bank NASDAQ No BIF MA NE 61,587 81.18
SCCB South Carolina Community Bancshares, Inc. NASDAQ No SAIF SC SE 45,619 16.07
SMBC Southern Missouri Bancorp, Inc. NASDAQ No SAIF MO MW 32,225 30.23
SWBI Southwest Bancshares, Inc. NASDAQ No SAIF IL MW 47,324 67.80
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets
M&A Dep MstRctQtr Market Value
Ticker Company Name Exchange Target? Ins. State Region ($000) ($M)
------ ------------ -------- ------- ---- ----- ------ ----------- ------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
SVRN Sovereign Bancorp, Inc. NASDAQ No SAIF PA MA 52,016 1,707.39
STFR St. Francis Capital Corporation NASDAQ No SAIF WI MW 22,249 204.94
SPBC St. Paul Bancorp, Inc. NASDAQ No SAIF IL MW 26,452 847.80
SFFC StateFed Financial Corporation NASDAQ No SAIF IA MW 22,006 21.03
SFIN Statewide Financial Corp. NASDAQ No SAIF NJ MA 47,752 98.64
SSM Stone Street Bancorp, Inc. AMSE No SAIF NC SE 39,237 41.99
SFSB SuburbFed Financial Corp. NASDAQ No SAIF IL MW 39,343 43.80
TPNZ Tappan Zee Financial, Inc. NASDAQ No SAIF NY MA 59,067 29.58
TSH Teche Holding Co. AMSE No SAIF LA SW 0 70.90
FTF Texarkana First Financial Corporation AMSE No SAIF AR SE 47,638 45.12
THRD TF Financial Corporation NASDAQ No SAIF PA MA 35,514 89.24
THR Three Rivers Financial Corp. AMSE No SAIF MI MW 28,680 16.68
ROSE TR Financial Corp. NASDAQ No BIF NY MA 21,548 598.13
TRIC Tri-County Bancorp, Inc. NASDAQ No SAIF WY WE 22,637 16.05
TWIN Twin City Bancorp, Inc. NASDAQ No SAIF TN SE 41,395 17.34
UFRM United Federal Savings Bank NASDAQ No SAIF NC SE 23,600 35.35
UBMT United Financial Corporation NASDAQ No SAIF MT WE 37,546 33.03
VABF Virginia Beach Federal Financial Corporation NASDAQ No SAIF VA SE 15,662 82.78
WRNB Warren Bancorp, Inc. NASDAQ No BIF MA NE 36,450 79.88
WFSL Washington Federal, Inc. NASDAQ No SAIF WA WE 17,957 1,538.10
WYNE Wayne Bancorp, Inc. NASDAQ No SAIF NJ MA 5,141 42.79
WEFC Wells Financial Corp. NASDAQ No SAIF MN MW 8,153 34.78
WCBI Westco Bancorp, Inc. NASDAQ No SAIF IL MW 46,926 68.65
WES Westcorp, Inc. NYSE No SAIF CA WE 21,810 451.29
WSTR WesterFed Financial Corporation NASDAQ No SAIF MT WE 16,163 133.85
WFI Winton Financial Corp. AMSE No SAIF OH MW 62,388 39.72
FFWD Wood Bancorp, Inc. NASDAQ No SAIF OH MW 35,448 39.22
WSFS WSFS Financial Corporation NASDAQ No BIF DE MA 53,817 248.85
WVFC WVS Financial Corporation NASDAQ No SAIF PA MA 20,091 54.20
YFCB Yonkers Financial Corporation NASDAQ No SAIF NY MA 50,812 56.64
YFED York Financial Corp. NASDAQ No SAIF PA MA 41,613 226.76
Maximum: 6,453 5,865.30
Minimum: 0 6.62
Average: 10,756 224.21
Median: 45,014 63.13
Aggregate: 22,538 NA
Source: SNL Securities, Charlottesville , VA
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Current Price/ Price/ Price/ Price/ Shares Out Dividend
Price LTM Earnings Book Tangible Book Assets One Month Yield
Ticker Pricing Date ($) (x) (%) (%) (%) (%) (%)
------ ------------ ------- ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FBCV 12/03/1997 27.500 15.19 126.44 128.87 10.94 0.27 1.02
FBER 12/03/1997 19.000 26.03 140.01 140.01 19.11 0.28 1.05
ABBK 12/03/1997 36.750 17.42 189.14 208.69 13.48 0.55 1.09
ANA 12/03/1997 23.500 21.96 136.55 136.55 23.13 1.32 1.53
AABC 12/03/1997 10.750 8.60 143.14 143.14 12.38 2.58 0.00
AFCB 12/03/1997 30.250 17.39 175.06 175.97 17.40 1.88 1.98
AFED 12/03/1997 19.125 21.49 120.13 120.13 17.48 0.50 1.25
AHM 12/03/1997 62.125 17.96 308.01 362.46 12.53 2.72 1.42
ALBK 12/03/1997 45.750 17.20 171.41 194.60 15.84 1.70 1.57
ALBC 12/03/1997 28.000 21.05 115.46 115.46 9.89 0.05 1.14
ABCL 12/03/1997 27.500 23.71 170.81 172.85 16.09 1.15 1.60
AMFC 12/03/1997 16.000 16.00 107.02 107.02 14.92 0.30 1.75
ASBI 12/03/1997 19.750 17.63 144.90 145.01 16.24 0.17 3.24
BKC 12/03/1997 47.625 14.93 205.10 212.80 18.06 0.57 3.02
ATSB 12/03/1997 14.000 25.00 96.82 97.77 10.58 0.74 0.00
ABCW 12/03/1997 32.000 16.16 231.55 235.64 14.82 0.61 1.00
ANDB 12/03/1997 38.375 15.41 189.98 189.98 15.43 1.38 1.98
ASBP 12/03/1997 13.250 18.66 128.64 128.64 20.03 0.74 3.02
ASFC 12/03/1997 56.250 19.46 190.61 225.36 14.71 3.23 1.07
BKCT 12/03/1997 23.000 22.12 256.70 256.70 27.60 0.47 2.17
BNKU 12/03/1997 43.250 17.87 228.35 233.66 11.42 0.74 1.48
BWFC 12/03/1997 15.000 24.19 169.11 169.11 23.93 1.09 1.42
BANC 12/03/1997 14.063 14.80 200.04 241.63 11.01 1.75 0.94
BKUNA 12/03/1997 12.875 23.84 162.15 206.00 5.72 2.66 0.00
BVCC 12/03/1997 35.125 26.61 237.17 283.95 13.80 7.99 0.91
BFSB 12/03/1997 28.250 19.22 156.60 156.60 23.19 1.23 1.98
CBCI 12/03/1997 32.125 15.90 128.45 128.45 20.83 1.25 0.00
CMRN 12/03/1997 20.500 21.13 117.61 117.61 24.72 0.86 1.37
CASB 12/03/1997 12.750 17.96 152.51 152.51 10.13 0.04 0.00
CATB 12/03/1997 18.000 21.95 116.81 116.81 28.95 0.85 1.78
CBES 12/03/1997 20.125 15.72 114.35 114.35 19.34 5.08 1.99
CNIT 12/03/1997 68.500 20.76 220.90 241.20 16.15 1.53 1.46
CEBK 12/03/1997 25.750 17.17 142.66 158.46 14.12 0.77 1.24
CFSB 12/03/1997 34.875 18.65 267.65 267.65 20.63 1.01 1.95
COFI 12/03/1997 62.250 17.24 287.79 313.29 20.30 2.67 1.61
CVAL 12/03/1997 27.000 19.85 209.46 209.46 18.34 0.10 1.63
CTZN 12/03/1997 36.250 18.98 227.70 250.52 14.29 1.08 0.66
CKFB 12/03/1997 18.500 14.80 109.40 109.40 27.91 0.10 2.70
CLAS 12/03/1997 16.500 18.97 109.05 128.40 16.23 0.68 1.70
CFCP 12/03/1997 22.250 18.70 319.23 319.23 20.93 0.15 1.62
CFB 12/03/1997 50.375 16.90 244.66 273.33 15.08 1.00 0.66
CMSB 12/03/1997 21.125 20.92 162.25 208.13 15.06 1.64 1.33
CFTP 12/03/1997 19.000 27.14 141.79 141.79 40.72 0.67 1.58
CFFC 12/03/1997 27.500 18.33 144.81 144.81 19.14 2.29 2.04
CIBI 12/03/1997 16.375 15.60 135.44 135.44 15.91 0.62 1.95
CMSV 07/08/1997 22.000 26.83 141.30 141.30 15.87 0.81 4.09
COOP 12/03/1997 18.750 27.17 202.27 202.27 15.56 0.39 0.00
CRZY 12/03/1997 15.375 21.06 103.33 103.33 24.49 2.42 2.60
DNFC 12/03/1997 25.750 15.90 230.32 232.61 12.10 0.62 0.00
DME 12/03/1997 25.250 20.36 243.26 255.57 13.20 2.48 0.63
DIME 12/03/1997 25.000 23.36 168.80 195.92 22.78 1.57 0.96
DIBK 12/03/1997 31.000 10.51 213.20 219.55 17.37 2.01 1.42
DSL 12/03/1997 28.813 19.47 184.58 186.98 13.17 0.40 1.11
EBSI 12/03/1997 19.250 22.38 152.90 152.90 12.50 0.65 3.12
ETFS 12/03/1997 20.000 25.64 98.33 98.33 17.70 0.22 1.00
ESBK 12/03/1997 30.500 22.43 144.76 148.64 9.44 0.90 2.10
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Current Price/ Price/ Price/ Price/ Shares Out Dividend
Price LTM Earnings Book Tangible Book Assets One Month Yield
Ticker Pricing Date ($) (x) (%) (%) (%) (%) (%)
------ ------------ ------- ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
EFBI 12/03/1997 27.125 22.05 171.46 171.57 19.60 0.40 3.69
EQSB 12/03/1997 45.000 12.82 174.42 174.42 8.79 1.05 0.00
FCBF 12/03/1997 28.375 22.70 151.58 151.58 21.05 0.49 2.82
FOBC 12/03/1997 25.750 19.22 147.56 154.38 17.08 1.00 2.41
FFBS 12/03/1997 22.500 18.75 149.30 149.30 26.21 0.02 2.22
FFDF 12/03/1997 18.750 15.00 126.18 126.18 30.71 0.45 0.00
FFLC 12/03/1997 22.750 25.28 165.70 165.70 22.75 0.78 1.27
FFFC 12/03/1997 33.750 20.71 189.18 193.08 26.90 0.66 1.42
FFWC 12/03/1997 39.000 15.85 158.28 174.42 15.36 0.96 1.85
FFYF 12/03/1997 30.500 16.49 150.25 150.25 20.58 0.76 2.62
FSBI 12/03/1997 26.625 15.57 159.91 159.91 10.87 0.37 1.35
FBCI 12/03/1997 23.438 16.98 125.61 125.88 13.16 0.31 1.37
FFED 12/03/1997 10.500 15.00 203.88 203.88 12.45 0.45 3.81
FFOH 12/03/1997 15.875 20.35 128.65 145.11 16.75 0.54 1.76
FIBC 12/03/1997 24.750 16.50 157.54 158.25 14.25 0.90 0.00
FBSI 12/03/1997 25.375 14.93 122.35 122.35 17.03 0.03 0.79
FBBC 12/03/1997 17.500 15.09 158.80 158.80 16.73 0.50 2.29
FSTC 12/03/1997 27.000 13.04 217.04 275.51 21.96 0.40 1.09
FFBA 12/03/1997 23.750 21.40 197.92 200.59 25.88 0.65 2.02
FDEF 12/03/1997 15.625 26.04 123.91 123.91 24.37 1.44 2.05
FESX 12/03/1997 20.500 14.86 172.27 196.93 12.76 1.14 2.34
FFBZ 12/03/1997 19.250 16.89 212.47 212.71 14.88 0.00 1.25
BDJI 12/03/1997 28.000 23.14 157.75 157.75 16.89 0.31 0.00
FFBH 12/03/1997 21.563 17.82 129.59 129.59 19.30 0.84 1.11
FTFC 12/03/1997 30.000 18.07 261.78 277.78 17.63 0.37 1.60
FFKY 12/03/1997 22.375 15.33 177.58 188.18 24.32 0.06 2.50
FFES 12/03/1997 37.000 19.79 151.64 151.64 10.05 1.40 1.62
FFSX 12/03/1997 32.250 27.10 229.05 230.85 20.00 0.05 1.49
FFCH 12/03/1997 49.000 21.97 297.87 297.87 18.22 2.20 1.71
FFHS 12/03/1997 26.500 25.98 151.52 152.39 13.66 0.44 1.51
FGHC 12/03/1997 8.250 27.50 195.96 213.73 16.10 0.26 0.00
FSPG 12/03/1997 23.750 13.81 178.44 181.16 12.25 0.04 1.68
FFSL 12/03/1997 15.000 22.06 127.33 127.33 13.04 0.01 1.67
FISB 12/03/1997 26.625 16.85 188.56 190.86 18.18 0.34 1.80
FKFS 12/03/1997 33.250 14.65 165.01 165.01 10.94 0.53 0.60
FLKY 12/03/1997 15.750 28.64 107.73 107.73 31.75 0.24 3.17
FLFC 12/03/1997 29.375 25.77 238.82 264.88 17.61 0.72 1.50
CASH 12/03/1997 20.500 16.14 127.25 143.26 13.67 0.09 2.34
FMSB 12/03/1997 18.125 17.77 240.70 240.70 16.34 0.75 1.10
FNGB 12/03/1997 13.750 21.48 166.87 166.87 18.51 0.37 2.33
FFPB 12/03/1997 39.500 21.35 176.42 180.61 11.03 0.88 1.52
SOPN 12/03/1997 23.500 19.11 127.51 127.51 29.34 0.96 3.74
FWWB 12/03/1997 26.500 20.38 167.40 181.26 24.72 2.96 1.06
SHEN 12/03/1997 33.750 15.13 149.67 149.67 17.39 0.31 1.78
FFDB 12/03/1997 21.281 14.48 144.08 157.40 13.88 0.05 2.35
FED 12/03/1997 37.125 17.27 185.53 187.41 9.57 1.00 0.00
FFSW 07/08/1997 40.250 25.80 313.96 371.65 16.97 0.74 1.09
FLAG 12/03/1997 18.688 18.69 175.31 175.31 15.96 1.10 1.82
FFIC 12/03/1997 23.000 21.70 134.66 140.24 19.12 0.75 1.04
FMCO 12/03/1997 30.000 13.16 189.87 192.68 12.32 0.09 0.93
FBHC 12/03/1997 19.625 20.66 165.19 176.96 10.17 0.60 2.04
FTSB 12/03/1997 15.000 18.99 142.05 142.05 22.92 0.74 1.67
FFHH 12/03/1997 20.000 18.87 123.15 123.15 15.51 0.35 0.00
GAF 12/03/1997 19.250 20.05 130.77 132.03 19.13 0.85 0.00
GUPB 12/03/1997 20.250 21.09 115.06 115.06 14.74 0.23 1.98
GBCI 12/03/1997 21.375 17.52 254.16 260.67 25.38 0.31 2.25
GFCO 12/03/1997 18.000 18.18 147.90 149.75 14.00 0.63 2.22
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Current Price/ Price/ Price/ Price/ Shares Out Dividend
Price LTM Earnings Book Tangible Book Assets One Month Yield
Ticker Pricing Date ($) (x) (%) (%) (%) (%) (%)
------ ------------ ------- ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GDW 12/03/1997 93.313 15.84 205.72 205.72 13.50 0.90 0.54
GSBC 12/03/1997 22.500 14.71 288.83 288.83 24.99 0.20 1.96
GSFC 12/03/1997 18.500 27.61 126.37 126.37 44.68 0.94 2.38
GPT 12/03/1997 67.500 18.96 200.59 374.17 22.08 1.59 1.48
HALL 12/03/1997 15.000 16.48 141.64 141.64 10.34 1.23 0.00
HRBF 12/03/1997 20.750 22.07 123.95 123.95 16.18 0.28 2.31
HARB 12/03/1997 65.750 24.72 337.87 348.81 28.91 0.82 2.13
HFSA 12/03/1997 17.875 18.62 113.49 113.49 13.09 0.62 2.69
HARL 12/03/1997 28.500 14.18 207.12 207.12 13.72 0.06 1.54
HFFB 12/03/1997 17.750 22.76 113.20 113.20 32.99 3.48 2.25
HAVN 12/03/1997 22.000 17.32 175.44 176.00 10.53 1.19 1.36
HBS 12/03/1997 21.250 13.62 122.62 126.94 17.39 0.12 2.64
HFFC 12/03/1997 26.000 13.90 142.70 142.70 12.68 0.30 1.62
HFNC 12/03/1997 14.875 22.20 156.91 156.91 29.50 0.98 1.88
HIFS 12/03/1997 27.875 14.08 173.14 173.14 16.80 0.24 1.72
HMNF 12/03/1997 25.750 18.26 128.17 128.17 19.07 1.15 0.00
HBFW 12/03/1997 27.500 22.92 156.07 156.07 20.73 1.17 0.73
HBBI 12/03/1997 21.250 18.48 104.01 104.01 15.86 0.14 1.41
HOMF 12/03/1997 27.000 16.07 229.40 236.43 19.84 0.36 1.30
HWEN 12/03/1997 16.438 21.92 105.30 105.30 18.48 2.58 1.22
HPBC 12/03/1997 24.750 14.06 212.45 212.45 22.68 0.28 3.23
HRZB 12/03/1997 16.938 15.26 151.64 151.64 23.71 0.61 2.60
HZFS 12/03/1997 11.625 14.90 113.19 113.19 11.27 1.06 1.55
IFSB 12/03/1997 13.250 12.16 93.11 104.58 6.75 0.46 1.66
INBI 12/03/1997 17.875 17.70 152.00 152.00 26.11 0.58 3.13
IPSW 12/03/1997 13.000 15.48 271.97 271.97 15.26 0.84 0.92
ISBF 12/03/1997 27.188 25.89 153.17 178.99 19.62 1.92 1.84
ITLA 12/03/1997 18.000 12.08 146.10 146.70 15.67 1.11 0.00
JXVL 12/03/1997 18.875 24.51 139.30 139.30 20.78 0.82 0.00
JSBA 12/03/1997 42.750 19.88 173.99 221.85 17.02 0.74 1.31
JSB 12/03/1997 47.750 16.75 132.97 132.97 30.87 0.43 0.00
KNK 12/03/1997 33.875 16.61 124.31 131.86 14.21 0.32 1.42
KYF 12/03/1997 14.375 17.97 127.33 127.33 21.26 0.43 3.48
KFBI 12/03/1997 22.250 25.28 142.26 156.47 22.74 0.84 1.44
KSAV 12/03/1997 22.500 17.05 136.86 136.94 18.12 0.10 0.00
KSBK 12/03/1997 15.250 11.82 171.35 180.26 12.62 0.58 0.52
LVSB 12/03/1997 24.875 20.73 181.44 211.70 22.17 0.41 0.50
LARK 12/03/1997 23.500 17.28 123.75 123.75 17.43 0.07 0.00
LARL 12/03/1997 27.750 14.16 182.57 182.57 19.11 0.06 0.00
LSBX 12/03/1997 14.313 10.45 182.56 182.56 17.37 2.12 0.00
LFBI 12/03/1997 20.000 29.85 137.65 149.25 16.08 0.38 0.00
LOGN 12/03/1997 15.250 16.94 118.58 118.58 22.41 0.48 0.00
LONF 12/03/1997 15.750 19.44 106.71 106.71 21.23 0.67 1.52
LISB 12/03/1997 47.875 23.02 210.53 212.49 19.39 3.08 1.25
LSBI 12/03/1997 26.250 15.72 129.69 129.69 12.01 0.22 1.30
MAFB 12/03/1997 33.000 14.10 191.64 218.11 14.93 1.33 0.85
MARN 12/03/1997 26.750 16.82 120.39 120.39 26.42 0.55 3.29
MFSL 12/03/1997 26.875 23.37 174.29 176.35 14.79 0.94 1.56
MASB 12/03/1997 45.250 16.76 160.18 162.59 17.27 0.51 2.12
MFLR 12/03/1997 24.750 16.95 177.17 180.00 17.08 0.75 2.75
MBLF 12/03/1997 27.000 20.15 120.81 120.81 15.29 0.04 1.48
MECH 12/03/1997 26.500 9.89 162.28 162.28 16.89 0.95 0.00
MWBX 12/03/1997 8.938 16.86 285.56 285.56 21.30 0.71 1.34
MFBC 12/03/1997 22.750 19.96 112.01 112.01 14.67 0.09 0.00
MCBN 12/03/1997 28.750 14.82 126.93 126.93 10.90 0.27 1.81
MIFC 12/03/1997 11.375 12.64 158.21 158.43 14.91 0.44 0.70
MWBI 12/03/1997 18.500 16.67 181.73 181.73 12.57 1.54 1.30
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Current Price/ Price/ Price/ Price/ Shares Out Dividend
Price LTM Earnings Book Tangible Book Assets One Month Yield
Ticker Pricing Date ($) (x) (%) (%) (%) (%) (%)
------ ------------ ------- ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MFFC 12/03/1997 15.063 23.91 122.36 122.36 16.54 1.52 3.98
MIVI 12/03/1997 17.500 18.23 107.36 107.36 18.90 0.11 0.91
MBSP 12/03/1997 17.875 28.83 116.37 116.37 48.10 0.50 2.24
MBB 12/03/1997 28.875 25.78 128.91 241.83 10.61 1.82 2.08
MSBF 12/03/1997 19.250 21.63 186.35 186.35 30.83 0.24 1.45
NHTB 12/03/1997 21.125 21.34 175.46 204.30 13.72 1.05 2.37
NMSB 12/03/1997 13.875 21.68 164.79 164.79 16.76 0.55 0.00
NASB 12/03/1997 54.125 13.36 213.34 220.74 16.38 0.20 1.48
FFFD 12/03/1997 18.625 16.20 123.10 123.10 28.21 0.87 1.34
NBN 12/03/1997 27.250 22.90 190.96 216.10 13.28 1.56 1.17
NEIB 12/03/1997 20.500 16.94 132.17 132.17 18.99 1.34 0.00
NWEQ 12/03/1997 19.000 15.32 130.76 130.76 16.44 0.24 2.95
OCFC 12/03/1997 37.375 22.79 135.27 135.27 20.52 2.04 0.00
OHSL 12/03/1997 27.750 16.92 129.55 129.55 14.60 0.23 3.17
PBHC 12/03/1997 29.000 27.10 241.26 287.13 28.80 0.26 0.97
OFCP 12/03/1997 27.875 22.66 197.00 243.88 17.21 0.56 1.30
PBCI 12/03/1997 24.000 14.63 142.10 143.11 18.34 0.58 4.17
PFED 12/03/1997 17.750 21.65 106.86 106.86 24.73 3.72 0.00
PVSA 12/03/1997 28.500 14.25 187.50 188.74 14.47 0.46 1.82
PEEK 12/03/1997 17.750 26.49 119.85 119.85 31.27 1.02 2.03
PFSB 12/03/1997 33.375 15.38 148.80 175.75 11.80 1.22 0.84
PWBC 12/03/1997 18.375 17.67 141.78 159.51 11.87 0.52 1.96
PWBK 12/03/1997 19.063 22.17 124.27 124.27 22.79 0.53 1.68
PFDC 12/03/1997 24.000 19.67 183.77 183.77 28.01 0.12 1.78
PBKB 12/03/1997 20.250 15.00 226.00 235.74 9.27 1.64 0.00
PBCT 12/03/1997 34.500 24.13 302.37 302.63 27.28 0.63 0.00
PFFC 12/03/1997 14.500 25.44 91.89 91.89 25.00 3.22 3.45
PHBK 12/03/1997 43.500 17.06 264.92 310.27 19.73 2.71 0.00
PERM 12/03/1997 26.250 21.69 129.63 131.38 12.73 0.33 1.52
PCBC 12/03/1997 23.250 24.22 123.60 123.60 23.73 5.61 1.72
PFFB 12/03/1997 19.125 28.98 130.19 131.53 13.09 1.20 0.00
PHFC 12/03/1997 18.750 18.03 128.16 129.49 13.51 2.83 1.28
PFSL 12/03/1997 35.000 23.97 235.69 235.69 14.90 0.13 2.57
PTRS 12/03/1997 16.000 13.68 142.73 142.73 12.58 0.98 1.25
PRBC 12/03/1997 19.000 20.88 112.56 112.56 12.61 1.25 0.63
PFNC 12/03/1997 15.500 18.02 264.96 296.93 14.23 0.49 0.00
PSBK 12/03/1997 33.938 15.43 168.18 186.68 14.69 0.50 0.00
PROV 12/03/1997 21.125 22.01 119.62 119.62 15.95 1.88 0.00
PULS 12/03/1997 26.000 14.44 185.32 185.32 15.23 0.24 2.69
PVFC 12/03/1997 20.750 11.53 195.20 195.20 14.02 0.39 0.00
QCFB 12/03/1997 28.500 14.54 151.35 151.35 24.89 0.12 0.00
QCBC 12/03/1997 19.750 16.46 128.83 128.83 10.90 0.92 0.00
QCSB 12/03/1997 36.000 25.35 271.49 271.49 35.29 0.96 2.22
RARB 12/03/1997 27.250 17.69 215.59 218.88 15.87 0.43 1.76
REDF 12/03/1997 20.000 15.87 178.41 179.05 14.84 4.08 0.00
RELY 12/03/1997 33.750 17.67 174.96 238.18 14.45 1.87 1.90
SSB 12/03/1997 10.125 13.68 133.05 133.05 30.09 0.75 2.96
SFSL 12/03/1997 21.000 20.19 252.71 256.72 23.41 0.60 1.52
SFED 12/03/1997 22.531 22.76 127.73 127.73 15.93 0.33 0.00
SGVB 12/03/1997 17.250 25.37 132.90 134.98 9.88 0.28 0.00
SISB 12/03/1997 36.250 17.68 191.39 191.39 13.92 2.53 0.00
SKAN 12/03/1997 19.000 16.10 157.02 161.70 10.99 1.82 1.40
SOBI 12/03/1997 19.000 28.79 110.08 110.08 17.57 0.66 1.68
SOSA 12/03/1997 4.875 15.73 236.65 236.65 15.60 2.20 0.00
SCCB 12/03/1997 23.000 29.49 132.56 132.56 35.23 4.14 2.61
SMBC 12/03/1997 18.750 19.95 114.61 114.61 18.51 1.21 2.67
SWBI 12/03/1997 25.500 17.71 159.28 159.28 18.07 0.68 3.14
</TABLE>
<PAGE>
Exhibit XXX
Pricing Characteristics of
Publicly-Traded Thrifts
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Current Price/ Price/ Price/ Price/ Shares Out Dividend
Price LTM Earnings Book Tangible Book Assets One Month Yield
Ticker Pricing Date ($) (x) (%) (%) (%) (%) (%)
------ ------------ ------- ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SVRN 12/03/1997 19.125 28.13 260.91 319.28 11.69 3.15 0.42
STFR 12/03/1997 39.125 17.78 159.43 180.22 12.34 0.48 1.43
SPBC 12/03/1997 24.813 18.38 207.12 207.64 18.62 0.82 1.61
SFFC 12/03/1997 13.500 18.75 136.92 136.92 24.02 0.05 1.48
SFIN 12/03/1997 21.875 17.22 152.55 152.76 14.28 0.98 2.01
SSM 12/03/1997 22.125 24.86 135.57 135.57 40.08 0.49 2.03
SFSB 12/03/1997 34.688 17.00 152.61 153.15 10.12 0.48 0.92
TPNZ 12/03/1997 19.875 27.60 138.41 138.41 23.74 0.66 1.41
TSH 12/03/1997 20.625 17.33 NA 2.06 NA 0.59 2.42
FTF 12/03/1997 25.250 15.40 164.82 164.82 25.25 0.43 2.22
THRD 12/03/1997 28.000 22.95 145.76 165.09 18.31 1.83 1.43
THR 12/03/1997 20.250 19.10 128.57 129.06 17.70 1.80 1.98
ROSE 12/03/1997 34.000 18.18 243.90 243.90 16.20 1.04 0.00
TRIC 12/03/1997 27.500 18.21 118.89 118.89 18.21 0.11 2.91
TWIN 12/03/1997 13.625 18.92 125.34 125.34 16.21 0.04 2.94
UFRM 12/03/1997 11.500 18.25 168.62 168.62 12.37 0.20 0.00
UBMT 12/03/1997 27.000 21.95 133.40 133.40 32.04 1.42 3.70
VABF 12/03/1997 16.625 22.17 191.09 191.09 13.67 0.86 0.00
WRNB 12/03/1997 21.000 10.77 205.88 205.88 21.91 0.63 2.48
WFSL 12/03/1997 32.375 14.65 214.26 233.42 26.89 1.32 2.84
WYNE 12/03/1997 21.250 19.68 128.87 128.87 16.01 1.16 0.94
WEFC 12/03/1997 17.750 16.14 119.45 119.45 16.98 0.41 0.00
WCBI 12/03/1997 27.750 16.32 142.89 142.89 22.21 0.11 2.16
WES 12/03/1997 17.188 13.02 132.22 132.52 12.01 0.65 0.00
WSTR 12/03/1997 24.000 19.05 126.12 156.35 13.40 0.99 1.92
WFI 12/03/1997 20.000 12.35 170.65 174.06 12.24 0.12 2.30
FFWD 12/03/1997 18.500 18.32 189.36 189.36 23.54 0.13 2.16
WSFS 12/03/1997 20.000 15.75 300.30 302.57 16.64 1.53 0.00
WVFC 12/03/1997 31.000 14.98 159.96 159.96 19.20 0.16 0.00
YFCB 12/03/1997 18.750 18.38 129.04 129.04 18.10 1.19 1.28
YFED 12/03/1997 25.750 21.11 221.60 221.60 19.62 0.79 1.86
93.313 29.85 337.87 374.17 48.10 7.99 4.17
4.875 8.60 91.89 2.06 5.72 0.00 0.00
25.227 19.04 167.00 173.78 18.20 0.95 1.45
22.641 18.26 156.07 158.45 16.89 0.67 1.48
NA NA NA NA NA NA NA
</TABLE>
<PAGE>
Exhibit XXXI
Pricing Characteristics of
Publicly-Traded Thrifts
in the Southeast
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets Market
M&A Dep MstRctQtr Value
Ticker Company Name Exchange Target? Ins. State Region ($000) ($M)
- ------ ------------ -------- ------- ---- ----- ------ ------------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BANC BankAtlantic Bancorp, Inc. NASDAQ No SAIF FL SE 26,948 308.91
BKUNA BankUnited Financial Corporation NASDAQ No SAIF FL SE 48,254 122.73
BFSB Bedford Bancshares, Inc. NASDAQ No SAIF VA SE 8,107 32.27
CNIT CENIT Bancorp, Inc. NASDAQ No SAIF VA SE 46,348 113.33
CFCP Coastal Financial Corporation NASDAQ No SAIF SC SE 35,251 103.39
CFTP Community Federal Bancorp, Inc. NASDAQ No SAIF MS SE 19,345 87.95
CFFC Community Financial Corporation NASDAQ No SAIF VA SE 52,206 35.12
CMSV Community Savings (MHC) NASDAQ No SAIF FL SE 26,954 108.25
COOP Cooperative Bankshares, Inc. NASDAQ No SAIF NC SE 31,855 55.94
EBSI Eagle Bancshares, Inc. NASDAQ No SAIF GA SE 20,738 109.70
FOBC Fed One Bancorp, Inc. NASDAQ No SAIF WV SE 30,041 61.12
FFBS FFBS BanCorp, Inc. NASDAQ No SAIF MS SE 3,880 35.38
FFLC FFLC Bancorp, Inc. NASDAQ No SAIF FL SE 55,702 87.24
FFFC FFVA Financial Corporation NASDAQ No SAIF VA SE 42,978 152.68
FSTC First Citizens Corporation NASDAQ No SAIF GA SE 9,517 74.08
FFBH First Federal Bancshares of Arkansas, Inc. NASDAQ No SAIF AR SE 22,831 105.57
FFCH First Financial Holdings Inc. NASDAQ No SAIF SC SE 8,995 312.04
FGHC First Georgia Holding, Inc. NASDAQ No SAIF GA SE 25,311 25.18
FLFC First Liberty Financial Corp. NASDAQ No SAIF GA SE 43,735 227.08
FFPB First Palm Beach Bancorp, Inc. NASDAQ No SAIF FL SE 38,948 199.39
SOPN First Savings Bancorp, Inc. NASDAQ No SAIF NC SE 33,171 86.88
FFDB FirstFed Bancorp, Incorporated NASDAQ No SAIF AL SE 45,392 24.49
FLAG FLAG Financial Corporation NASDAQ No SAIF GA SE 41,855 38.07
GSFC Green Street Financial Corp. NASDAQ No SAIF NC SE 46,890 79.52
HARB Harbor Florida Bancorp, Inc. (MHC) NASDAQ No SAIF FL SE 16,912 327.00
HBS Haywood Bancshares, Inc. AMSE No BIF NC SE 21,724 26.57
HFNC HFNC Financial Corp. NASDAQ No SAIF NC SE 14,891 255.74
KSAV KS Bancorp, Inc. NASDAQ No SAIF NC SE 44,401 19.92
MBSP Mitchell Bancorp, Inc. NASDAQ No SAIF NC SE 34,591 16.64
PFSL Pocahontas Federal Savings & Loan Assoc. (MHC) NASDAQ No SAIF AR SE 55,737 57.13
SSB Scotland Bancorp, Inc. AMSE No SAIF NC SE 64,399 19.38
SCCB South Carolina Community Bancshares, Inc. NASDAQ No SAIF SC SE 45,619 16.07
SSM Stone Street Bancorp, Inc. AMSE No SAIF NC SE 39,237 41.99
FTF Texarkana First Financial Corporation AMSE No SAIF AR SE 47,638 45.12
TWIN Twin City Bancorp, Inc. NASDAQ No SAIF TN SE 41,395 17.34
UFRM United Federal Savings Bank NASDAQ No SAIF NC SE 23,600 35.35
VABF Virginia Beach Federal Financial Corporation NASDAQ No SAIF VA SE 15,662 82.78
Maximum: 26,948 327.00
Minimum: 34,591 16.07
Average: 40,357 95.87
Median: 9,517 74.08
Aggregate: 51,410 NA
</TABLE>
Source: SNL Securities, Charlottesville, VA
<PAGE>
Exhibit XXXI
Pricing Characteristics of
Publicly-Traded Thrifts
in the Southeast
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Current Price/ Price/ Price/ Price/ Shares Out Dividend
Price LTM Earnings Book Tangible Book Assets One Month Yield
Pricing Date ($) (x) (%) (%) (%) (%) (%)
- ------------ ------- ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
12/03/1997 14.063 14.80 200.04 241.63 11.01 1.75 0.94
12/03/1997 12.875 23.84 162.15 206.00 5.72 2.66 0.00
12/03/1997 28.250 19.22 156.60 156.60 23.19 1.23 1.98
12/03/1997 68.500 20.76 220.90 241.20 16.15 1.53 1.46
12/03/1997 22.250 18.70 319.23 319.23 20.93 0.15 1.62
12/03/1997 19.000 27.14 141.79 141.79 40.72 0.67 1.58
12/03/1997 27.500 18.33 144.81 144.81 19.14 2.29 2.04
07/08/1997 22.000 26.83 141.30 141.30 15.87 0.81 4.09
12/03/1997 18.750 27.17 202.27 202.27 15.56 0.39 0.00
12/03/1997 19.250 22.38 152.90 152.90 12.50 0.65 3.12
12/03/1997 25.750 19.22 147.56 154.38 17.08 1.00 2.41
12/03/1997 22.500 18.75 149.30 149.30 26.21 0.02 2.22
12/03/1997 22.750 25.28 165.70 165.70 22.75 0.78 1.27
12/03/1997 33.750 20.71 189.18 193.08 26.90 0.66 1.42
12/03/1997 27.000 13.04 217.04 275.51 21.96 0.40 1.09
12/03/1997 21.563 17.82 129.59 129.59 19.30 0.84 1.11
12/03/1997 49.000 21.97 297.87 297.87 18.22 2.20 1.71
12/03/1997 8.250 27.50 195.96 213.73 16.10 0.26 0.00
12/03/1997 29.375 25.77 238.82 264.88 17.61 0.72 1.50
12/03/1997 39.500 21.35 176.42 180.61 11.03 0.88 1.52
12/03/1997 23.500 19.11 127.51 127.51 29.34 0.96 3.74
12/03/1997 21.281 14.48 144.08 157.40 13.88 0.05 2.35
12/03/1997 18.688 18.69 175.31 175.31 15.96 1.10 1.82
12/03/1997 18.500 27.61 126.37 126.37 44.68 0.94 2.38
12/03/1997 65.750 24.72 337.87 348.81 28.91 0.82 2.13
12/03/1997 21.250 13.62 122.62 126.94 17.39 0.12 2.64
12/03/1997 14.875 22.20 156.91 156.91 29.50 0.98 1.88
12/03/1997 22.500 17.05 136.86 136.94 18.12 0.10 0.00
12/03/1997 17.875 28.83 116.37 116.37 48.10 0.50 2.24
12/03/1997 35.000 23.97 235.69 235.69 14.90 0.13 2.57
12/03/1997 10.125 13.68 133.05 133.05 30.09 0.75 2.96
12/03/1997 23.000 29.49 132.56 132.56 35.23 4.14 2.61
12/03/1997 22.125 24.86 135.57 135.57 40.08 0.49 2.03
12/03/1997 25.250 15.40 164.82 164.82 25.25 0.43 2.22
12/03/1997 13.625 18.92 125.34 125.34 16.21 0.04 2.94
12/03/1997 11.500 18.25 168.62 168.62 12.37 0.20 0.00
12/03/1997 16.625 22.17 191.09 191.09 13.67 0.86 0.00
68.500 29.49 337.87 348.81 48.10 4.14 4.09
8.250 13.04 116.37 116.37 5.72 0.02 0.00
24.685 21.18 175.14 181.94 21.94 0.88 1.77
22.125 20.76 156.91 157.40 18.22 0.75 1.88
NA NA NA NA NA NA NA
</TABLE>
<PAGE>
Exhibit XXXII
Pricing Characteristics of
Publicly-Traded Thrifts
in North Carolina
as of December 3, 1997
<TABLE>
<CAPTION>
Total Assets Market Current
M&A Dep MstRctQtr Value Pricing Price
Ticker Company Name Exchange Target Ins. State Region ($000) ($M) Date ($)
- ------ ------------ -------- ------ ---- ----- ------ ------------- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CFNC Carolina Fincorp, Inc. NASDAQ No SAIF NC SE 48,533 32.86 12/03/1997 17.750
CENB Century Bancorp, Inc. NASDAQ No SAIF NC SE 35,401 33.81 12/03/1997 83.000
COOP Cooperative Bankshares, Inc. NASDAQ No SAIF NC SE 31,855 55.94 12/03/1997 18.750
SOPN First Savings Bancorp, Inc. NASDAQ No SAIF NC SE 33,171 86.88 12/03/1997 23.500
GSFC Green Street Financial Corp. NASDAQ No SAIF NC SE 46,890 79.52 12/03/1997 18.500
HBS Haywood Bancshares, Inc. AMSE No BIF NC SE 21,724 26.57 12/03/1997 21.250
HFNC HFNC Financial Corp. NASDAQ No SAIF NC SE 14,891 255.74 12/03/1997 14.875
KSAV KS Bancorp, Inc. NASDAQ No SAIF NC SE 44,401 19.92 12/03/1997 22.500
MBSP Mitchell Bancorp, Inc. NASDAQ No SAIF NC SE 34,591 16.64 12/03/1997 17.875
NSBC NewSouth Bancorp, Inc. NASDAQ No SAIF NC SE 58,255 74.19 07/08/1997 25.500
PDB Piedmont Bancorp, Inc. AMSE No SAIF NC SE 61,008 29.57 12/03/1997 10.750
SSB Scotland Bancorp, Inc. AMSE No SAIF NC SE 64,399 19.38 12/03/1997 10.125
SSFC South Street Financial Corp. NASDAQ No SAIF NC SE 43,916 86.00 12/03/1997 19.125
SSM Stone Street Bancorp, Inc. AMSE No SAIF NC SE 39,237 41.99 12/03/1997 22.125
UFRM United Federal Savings Bank NASDAQ No SAIF NC SE 23,600 35.35 12/03/1997 11.500
Maximum: 14,891 255.74 83.000
Minimum: 34,591 16.64 10.125
Average: 22,649 59.62 22.475
Median: 21,724 35.35 18.750
Aggregate: 12,048 NA NA
</TABLE>
Source: SNL Securities, Charlottesville, VA
<PAGE>
Exhibit XXXII
Pricing Characteristics of
Publicly-Traded Thrifts
in North Carolina
as of December 3, 1997
<TABLE>
<CAPTION>
Weekly Volume/ Current
Price/ Price/ Price/ Price/ Shares Out Dividend
LTM Earnings Book Tangible Book Assets One Month Yield
Ticker (x) (%) (%) (%) (%) (%)
- ------ ------------ ------ ------------- ------ -------------- --------
<S> <C> <C> <C> <C> <C> <C>
CFNC NA 127.51 127.51 28.81 0.71 0.00
CENB NA 110.59 110.59 33.49 0.37 0.00
COOP 27.17 202.27 202.27 15.56 0.39 0.00
SOPN 19.11 127.51 127.51 29.34 0.96 3.74
GSFC 27.61 126.37 126.37 44.68 0.94 2.38
HBS 13.62 122.62 126.94 17.39 0.12 2.64
HFNC 22.20 156.91 156.91 29.50 0.98 1.88
KSAV 17.05 136.86 136.94 18.12 0.10 0.00
MBSP 28.83 116.37 116.37 48.10 0.50 2.24
NSBC NM NA NA NA 1.58 1.57
PDB NM 142.20 142.20 23.37 0.39 0.00
SSB 13.68 133.05 133.05 30.09 0.75 2.96
SSFC NA 128.87 128.87 35.75 1.41 2.09
SSM 24.86 135.57 135.57 40.08 0.49 2.03
UFRM 18.25 168.62 168.62 12.37 0.20 0.00
28.83 202.27 202.27 48.10 1.58 3.74
13.62 110.59 110.59 12.37 0.10 0.00
21.24 138.24 138.55 29.05 0.66 1.44
23.53 130.96 130.96 29.42 0.50 1.88
NA NA NA NA NA NA
</TABLE>
Source: SNL Securities, Charlottesville, VA
<PAGE>
Exhibit XXXIII
Selection of
Comparative Group Companies
<TABLE>
<CAPTION>
Total Assets Price/
Reason Conversion MstRctQtr LTM Earnings
Ticker Excluded Company Name Type ($000) (x)
- ------ -------- ------------ ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
SFFC 2 StateFed Financial Corporation Standard 22,006 18.75
MBSP 2 Mitchell Bancorp, Inc. Standard 34,591 28.83
HWEN 2 Home Financial Bancorp Standard 41,309 21.92
FLKY 2 First Lancaster Bancshares, Inc. Standard 47,184 28.64
FTSB 2 Fort Thomas Financial Corporation Standard 32,307 18.99
MSBF 3 MSB Financial, Inc. Standard 11,478 21.63
SZB 4 SouthFirst Bancshares, Inc. Standard 31,747 NM
TSH 5 Teche Holding Co. Standard 0 17.33
PCBC 6 Perry County Financial Corporation Standard 15,569 24.22
TRIC 6 Tri-County Bancorp, Inc. Standard 22,637 18.21
CRZY 6 Crazy Woman Creek Bancorp, Incorporated Standard 59,952 21.06
KYF 6 Kentucky First Bancorp, Inc. Standard 22,553 17.97
RELI 6 Reliance Bancshares, Inc. Standard 46,987 33.65
PWBK 6 Pennwood Bancorp, Inc. Standard 47,645 22.17
PFFC 6 Peoples Financial Corporation Standard 20,950 25.44
WCFB 1,6 Webster City Federal Savings Bank (MHC) Mutual Holding Co 28,945 32.69
ATSB 2,3 AmTrust Capital Corp. Standard 4,149 25.00
NWEQ 2,3 Northwest Equity Corporation Standard 31,418 15.32
CNSB 3,4 CNS Bancorp, Inc. Standard 31,875 42.16
PSFI 4,6 PS Financial, Inc. Standard 20,162 NA
HHFC 4,6 Harvest Home Financial Corporation Standard 22,060 56.73
CSBF 4,6 CSB Financial Group, Inc. Standard 48,844 77.21
NSLB 4,6 NS&L Bancorp, Inc. Standard 59,711 42.61
CKFB CKF Bancorp, Inc. Standard 59,868 14.80
CIBI Community Investors Bancorp, Inc. Standard 28,792 15.60
FFDF FFD Financial Corporation Standard 22,684 15.00
HBBI Home Building Bancorp, Inc. Standard 41,746 18.48
JOAC Joachim Bancorp, Inc. Standard 35,073 39.47
LXMO Lexington B&L Financial Corp. Standard 59,236 30.04
LOGN Logansport Financial Corp. Standard 20,265 16.94
LONF London Financial Corporation Standard 38,210 19.44
MIVI Mississippi View Holding Company Standard 3,010 18.23
SSB Scotland Bancorp, Inc. Standard 64,399 13.68
SOBI Sobieski Bancorp, Inc. Standard 18,743 28.79
SCCB South Carolina Community Bancshares, Inc. Standard 45,619 29.49
THR Three Rivers Financial Corp. Standard 28,680 19.10
Maximum: 32,307 77.21
Minimum: 0 13.68
Average: 3,384 26.16
Median: 7,814 21.92
Aggregate: 56,292 NA
</TABLE>
1. Mutual Holding Company
2. NPA's > 1.5%
3. Loan Servicing/Assets > 20%
4. PE for last 12 months > 40X
5. Incomplete financial data available for company
6. Loans/Assets < 65%
<PAGE>
Exhibit XXXIII
Selection of
Comparative Group Companies
<TABLE>
<CAPTION>
Equity/
Total Net Loans/ Loans Serviced/ NPAs/ Assets Total Assets ROAA ROAE Asset Growth Loan Growth
Assets Assets LTM MstRctQtr LTM LTM LTM LTM
Ticker (%) (%) (%) (%) (%) (%) (%) (%)
------ --- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SFFC 77.56% 0.00% 2.19 17.53 NA NA 8.00 2.36
MBSP 83.23% 0.00% 2.25 41.35 1.62 3.79 -1.11 10.59
HWEN 84.94% 0.00% 1.70 17.55 0.85 4.60 6.79 24.00
FLKY 90.37% 0.00% 2.28 29.47 1.24 3.64 24.69 32.45
FTSB 90.89% 0.00% 1.91 16.13 1.22 7.18 11.17 14.10
MSBF 91.60% 43.38% 0.02 16.54 1.50 8.42 22.57 21.98
SZB 73.51% 0.00% 0.53 14.00 -0.03 -0.20 7.45 15.27
TSH #DIV/0! NA NM NM 0.99 7.35 -100.00 NA
PCBC 16.41% 0.00% 0.03 19.20 0.93 4.97 0.88 NA
TRIC 44.21% 0.18% 0.00 15.31 1.05 7.13 10.94 12.51
CRZY 47.76% 0.13% 0.38 23.70 1.28 4.74 16.37 10.73
KYF 55.99% 0.00% 0.04 16.70 1.15 6.64 2.42 8.89
RELI 57.54% NA 0.00 48.31 1.32 2.58 -2.08 NA
PWBK 60.16% 0.31% 0.94 18.34 0.99 5.20 3.07 33.03
PFFC 60.22% 0.00% 0.00 27.21 0.59 2.31 10.52 26.65
WCFB 57.35% 0.00% 0.07 23.38 1.42 6.09 -0.01 0.70
ATSB 70.79% 42.07% 2.20 10.93 0.40 3.86 -3.36 -5.96
NWEQ 81.69% 26.63% 1.42 11.69 1.03 8.75 1.52 3.35
CNSB 69.28% 21.30% 0.50 24.33 0.79 3.20 -1.50 19.57
PSFI 41.36% 0.00% 0.68 37.32 2.03 5.26 NA NA
HHFC 51.44% 0.30% 0.11 11.81 0.30 2.31 14.66 7.45
CSBF 55.41% 0.00% 0.56 25.04 0.31 1.21 17.63 18.37
NSLB 55.66% 0.00% 0.02 19.56 0.49 2.39 4.23 NA
CKFB 92.12% 0.00% 0.70 23.67 1.82 7.51 -0.05 4.40
CIBI 83.92% 0.47% 0.53 11.75 0.97 8.37 -0.50 13.74
FFDF 66.66% NA NA 24.34 1.95 7.83 3.26 17.99
HBBI 68.46% 0.00% 0.44 14.12 0.75 5.76 -1.91 1.69
JOAC 70.21% 0.00% 0.20 28.14 0.79 2.72 -2.92 4.35
LXMO 76.31% NA 0.48 28.32 1.02 3.45 -3.36 10.77
LOGN 71.09% 0.00% 0.49 18.89 1.42 7.28 7.62 9.62
LONF 77.11% NA NA 19.90 1.03 4.96 3.78 8.94
MIVI 65.08% 0.00% NA 17.61 1.07 6.04 -2.09 NA
SSB 72.15% NA NA 22.61 1.89 6.39 -6.15 3.11
SOBI 76.57% 0.00% 0.13 14.78 0.62 3.88 4.50 18.67
SCCB 78.80% NA 0.87 26.58 NA NA 5.52 NA
THR 67.45% NA 0.87 13.77 0.90 6.48 7.84 11.43
2.28 48.31 2.03 8.75 24.69 33.03
0.00 10.93 -0.03 -0.20 -100.00 -5.96
0.73 21.43 1.05 5.06 2.01 12.44
0.52 19.38 1.02 5.09 3.26 10.77
NA NA NA NA NA NA
</TABLE>
<PAGE>
Exhibit XXXIII
Selection of
Comparative Group Companies
<TABLE>
<CAPTION>
Deposit Growth FTE Employees One Year Repricing Gap One Year Gap/ Assets
LTM # MstRctQtr MstRctQtr MstRctQtr
Ticker (%) IPO Date Offices (Actual) ($000) (%)
- ------ -------------- -------- ------- ------------- ---------------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
SFFC 12.75 01/05/1994 2 NA NA NA
MBSP -0.08 07/12/1996 1 6 NA NA
HWEN 7.30 07/02/1996 1 18 409 0.99
FLKY 3.03 07/01/1996 1 NA NA NA
FTSB 12.75 06/28/1995 2 19 3,397 3.47
MSBF 1.97 02/06/1995 2 19 NA NA
SZB -4.21 02/14/1995 2 45 -10,591 -10.89
TSH NA 04/19/1995 9 NA NA NA
PCBC -2.93 02/13/1995 1 9 NA NA
TRIC 5.44 09/30/1993 2 19 NA NA
CRZY 0.43 03/29/1996 1 10 NA NA
KYF 10.35 08/29/1995 2 21 NA NA
RELI -2.96 04/19/1996 1 NA NA NA
PWBK 2.63 07/15/1996 3 11 5,870 12.32
PFFC -8.54 09/13/1996 2 19 NA NA
WCFB -0.06 08/15/1994 1 21 6,130 6.49
ATSB 2.48 03/28/1995 2 NA NA NA
NWEQ 0.18 10/11/1994 3 35 -12,032 -12.41
CNSB -0.73 06/12/1996 5 27 3,544 3.64
PSFI NA 11/27/1996 1 15 NA NA
HHFC -1.98 10/10/1994 3 17 NA NA
CSBF 27.51 10/09/1995 2 15 NA NA
NSLB 2.37 06/08/1995 2 19 NA NA
CKFB -1.85 01/04/1995 1 9 NA NA
CIBI 5.57 02/07/1995 3 26 NA NA
FFDF 7.05 04/03/1996 1 NA NA NA
HBBI -3.40 02/08/1995 2 15 NA NA
JOAC -0.44 12/28/1995 1 14 NA NA
LXMO -0.25 06/06/1996 1 9 NA NA
LOGN 10.38 06/14/1995 1 13 NA NA
LONF 6.23 04/01/1996 1 NA NA NA
MIVI -2.38 03/24/1995 1 NA NA NA
SSB 1.72 04/01/1996 2 NA NA NA
SOBI -2.52 03/31/1995 3 24 NA NA
SCCB 9.13 07/07/1994 3 NA NA NA
THR -3.38 08/24/1995 4 NA NA NA
27.51 9 45 6,130 12.32
-8.54 1 6 -12,032 -12.41
2.75 2 18 -468 0.52
1.08 2 18 3,397 3.47
NA 75 455 -3,273 NA
</TABLE>
<PAGE>
Exhibit XXXIII
Selection of
Comparative Group Companies
<TABLE>
<CAPTION>
Total Net Loans Total Net Loans/ Loans Serviced Loans Serviced/ Price/ Price/ Price/ Price/
MstRctQtr Assets MstRctQtr Assets LTM Earnings Book Tangible Book Assets
Ticker ($000) (%) ($000) (%) (x) (%) (%) (%)
- ------ ---------------- --------------- --------------- --------------- ------------ ------ ------------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SFFC 2,359 10.72% 0 0.00% 18.75 136.92 136.92 24.02
MBSP 28,791 83.23% 0 0.00% 28.83 116.37 116.37 48.10
HWEN 35,087 84.94% 0 0.00% 21.92 105.30 105.30 18.48
FLKY 42,639 90.37% 0 0.00% 28.64 107.73 107.73 31.75
FTSB 23,392 72.41% 0 0.00% 18.99 142.05 142.05 22.92
MSBF 5,008 43.63% 33,411 291.09% 21.63 186.35 186.35 30.83
SZB 5,977 18.83% 0 0.00% NM 118.31 118.31 16.55
TSH 0 #DIV/0! NA NA 17.33 NA 2.06 NA
PCBC 13,311 85.50% 0 0.00% 24.22 123.60 123.60 23.73
TRIC 38,980 172.20% 157 0.69% 18.21 118.89 118.89 18.21
CRZY 28,636 47.76% 77 0.13% 21.06 103.33 103.33 24.49
KYF 49,320 218.68% 0 0.00% 17.97 127.33 127.33 21.26
RELI 27,035 57.54% NA NA 33.65 95.32 95.32 46.04
PWBK 28,661 60.16% 148 0.31% 22.17 124.27 124.27 22.79
PFFC 52,083 248.61% 0 0.00% 25.44 91.89 91.89 25.00
WCFB 54,184 187.20% 0 0.00% 32.69 202.00 202.00 47.23
ATSB 49,328 1188.91% 29,316 706.58% 25.00 96.82 97.77 10.58
NWEQ 13,666 43.50% 25,821 82.19% 15.32 130.76 130.76 16.44
CNSB 1,949 6.11% 20,744 65.08% 42.16 149.93 149.93 36.49
PSFI 35,444 175.80% 0 0.00% NA 118.56 118.56 44.24
HHFC 45,063 204.27% 262 1.19% 56.73 130.42 130.42 15.40
CSBF 27,063 55.41% 0 0.00% 77.21 101.04 106.97 25.31
NSLB 33,238 55.66% 0 0.00% 42.61 113.57 113.57 22.22
CKFB 55,149 92.12% 0 0.00% 14.80 109.40 109.40 27.91
CIBI 13,624 47.32% 445 1.55% 15.60 135.44 135.44 15.91
FFDF 58,810 259.26% NA NA 15.00 126.18 126.18 30.71
HBBI 28,579 68.46% 0 0.00% 18.48 104.01 104.01 15.86
JOAC 24,624 70.21% 0 0.00% 39.47 109.81 109.81 30.90
LXMO 45,205 76.31% NA NA 30.04 116.26 116.26 32.91
LOGN 60,994 300.98% 0 0.00% 16.94 118.58 118.58 22.41
LONF 29,465 77.11% NA NA 19.44 106.71 106.71 21.23
MIVI 44,610 1482.06% 0 0.00% 18.23 107.36 107.36 18.90
SSB 46,463 72.15% NA NA 13.68 133.05 133.05 30.09
SOBI 64,534 344.31% 0 0.00% 28.79 110.08 110.08 17.57
SCCB 35,946 78.80% NA NA 29.49 132.56 132.56 35.23
THR 63,551 221.59% NA NA 19.10 128.57 129.06 17.70
23,392 33,411 77.21 202.00 202.00 48.10
0 0 13.68 91.89 2.06 10.58
46,431 3,942 26.16 122.25 119.12 25.98
45,134 0 21.92 118.56 118.44 23.73
33,120 44,845 NA NA NA NA
</TABLE>
<PAGE>
Exhibit XXXIV
Balance Sheet Analysis
of Comparative Companies
<TABLE>
<CAPTION>
Cash & Total Real Servicing Tangible
Securities Net Loans Estate Rights Assets
MstRctQtr MstRctQtr MstRctQtr MstRctQtr MstRctQtr
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Company Name
CKF Bancorp, Inc. 6.12% 92.12% NA 0.00% 0.00%
Community Investors Bancorp, Inc. 14.85% 83.92% 0.04% 0.00% 0.00%
FFD Financial Corporation 31.56% 66.66% NA 0.00% 0.00%
Home Building Bancorp, Inc. 28.70% 68.46% NA 0.00% 0.00%
Joachim Bancorp, Inc. 27.66% 70.21% NA 0.00% 0.00%
Lexington B&L Financial Corp. 21.52% 76.31% NA 0.00% 0.00%
Logansport Financial Corp. 24.41% 71.09% 0.12% 0.00% 0.00%
London Financial Corporation 21.42% 77.11% NA 0.00% 0.00%
Mississippi View Holding Company 32.28% 65.08% NA 0.00% 0.00%
Scotland Bancorp, Inc. 25.99% 72.15% NA 0.00% 0.00%
Sobieski Bancorp, Inc. 20.29% 76.57% NA 0.00% 0.00%
South Carolina Community Bancshares, Inc. 18.73% 78.80% 0.22% 0.00% 0.00%
Three Rivers Financial Corp. 28.97% 67.45% 0.52% 0.00% 0.05%
Average: 23.27% 74.30% 0.23% 0.00% 0.00%
Median: 17.54% 79.79% 0.52% 0.00% 0.02%
Landis Savings Bank, SSB 21.03% 76.92% 0.00% 0.00% 0.00%
</TABLE>
Source: SNL Securities, Charlottesville, VA, Meritas calculations
<PAGE>
Exhibit XXXIV
Balance Sheet Analysis
of Comparative Companies
<TABLE>
<CAPTION>
Total Total Total Total Tangible
Deposits Borrowings Liabilities Equity Equity
MstRctQtr MstRctQtr MstRctQtr MstRctQtr MstRctQtr
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Company Name
CKF Bancorp, Inc. 71.29% 3.71% 76.33% 23.67% 23.67%
Community Investors Bancorp, Inc. 78.53% 9.05% 88.25% 11.75% 11.75%
FFD Financial Corporation 64.93% 9.39% 75.66% 24.34% 24.34%
Home Building Bancorp, Inc. 75.50% 9.58% 85.88% 14.12% 14.12%
Joachim Bancorp, Inc. 70.19% NA 71.86% 28.14% 28.14%
Lexington B&L Financial Corp. 71.05% NA 71.68% 28.32% 28.32%
Logansport Financial Corp. 71.96% 6.41% 81.11% 18.89% 18.89%
London Financial Corporation 78.39% 0.79% 80.10% 19.90% 19.90%
Mississippi View Holding Company 80.51% NA 82.39% 17.61% 17.61%
Scotland Bancorp, Inc. 66.99% 8.54% 77.39% 22.61% 22.61%
Sobieski Bancorp, Inc. 69.37% 15.44% 85.22% 14.78% 14.78%
South Carolina Community Bancshares, Inc. 72.53% NA 73.42% 26.58% 26.58%
Three Rivers Financial Corp. 64.62% 19.89% 86.23% 13.77% 13.72%
Average: 71.99% 9.20% 79.66% 20.34% 20.34%
Median: 67.95% 11.80% 81.28% 18.72% 18.70%
Landis Savings Bank, SSB 81.29% 0.00% 0.00% 18.14% 18.14%
</TABLE>
Source: SNL Securities, Charlottesville, VA, Meritas calculations
<PAGE>
Exhibit XXXV
Landis Savings Bank, SSB
Comparative Income Statements
<TABLE>
<CAPTION>
Total Total
Net Loan Non- Non- Non- Income
Interest Interest Interest Loss Interest Interest recurring Before
Income Expense Margin Provision Income Expense Expense Taxes
-------- -------- -------- --------- -------- -------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Company Name
CKF Bancorp, Inc. 7.55% 3.80% 3.75% 0.00% 0.10% 1.77% 0.00% 2.78%
Community Investors Bancorp, Inc. 7.70% 4.31% 3.39% 0.10% 0.16% 1.99% 0.00% 1.46%
FFD Financial Corporation 7.03% 3.70% 3.33% 0.15% 0.06% 1.82% 0.00% 2.92%
Home Building Bancorp, Inc. 7.52% 4.16% 3.35% 0.01% 0.27% 2.40% 0.00% 1.22%
Joachim Bancorp, Inc. 7.15% 3.03% 4.13% 0.04% 0.14% 2.91% 0.00% 1.32%
Lexington B&L Financial Corp. 7.43% 3.78% 3.66% 0.03% 0.15% 1.75% 0.00% 1.56%
Logansport Financial Corp. 7.50% 3.76% 3.74% 0.02% 0.16% 1.55% 0.01% 2.25%
London Financial Corporation 7.55% 3.91% 3.64% 0.00% 0.18% 2.36% 0.00% 1.56%
Mississippi View Holding Company 7.46% 3.61% 3.84% 0.00% 0.28% 2.39% 0.00% 1.73%
Scotland Bancorp, Inc. 7.77% 2.98% 4.79% 0.04% 0.10% 2.18% 0.00% 2.69%
Sobieski Bancorp, Inc. 7.18% 3.95% 3.23% 0.00% 0.20% 2.44% 0.00% 1.07%
South Carolina Community Bancshares, Inc. 7.83% 3.65% 4.18% 0.00% 0.23% 2.53% 0.00% 1.89%
Three Rivers Financial Corp. 7.58% 3.91% 3.67% 0.07% 0.59% 2.83% 0.00% 1.36%
Average: 7.48% 3.73% 3.75% 0.04% 0.20% 2.23% 0.00% 1.83%
Median: 7.52% 3.78% 3.67% 0.02% 0.16% 2.36% 0.00% 1.56%
Landis Savings Bank, SSB 7.40% 4.12% 3.27% 0.10% 0.03% 2.46% 0.18% 0.74%
</TABLE>
Reported
Income Net Core
Taxes Income Income
------ -------- ------
Company Name
CKF Bancorp, Inc. 0.95% 1.82% 1.37%
Community Investors Bancorp, Inc. 0.49% 0.97% 0.97%
FFD Financial Corporation 0.97% 1.95% 0.98%
Home Building Bancorp, Inc. 0.48% 0.75% 0.73%
Joachim Bancorp, Inc. 0.53% 0.79% 0.79%
Lexington B&L Financial Corp. 0.54% 1.02% 1.32%
Logansport Financial Corp. 0.83% 1.42% 1.47%
London Financial Corporation 0.53% 1.03% 0.96%
Mississippi View Holding Company 0.66% 1.07% 1.07%
Scotland Bancorp, Inc. 0.80% 1.89% 1.88%
Sobieski Bancorp, Inc. 0.45% 0.62% 0.57%
South Carolina Community Bancshares, Inc. 0.72% 1.16% 1.16%
Three Rivers Financial Corp. 0.46% 0.90% 0.90%
Average: 0.65% 1.18% 1.09%
Median: 0.54% 1.03% 0.98%
Landis Savings Bank, SSB 0.22% 0.53% 0.71%
Source: SNL Securities, Charlottesville, VA; Meritas calculations
<PAGE>
Exhibit XXXVI
Compound Growth Rates
for 1993-1996
<TABLE>
<CAPTION>
Annual Annual Annual Annual
Growth Growth Growth Growth
in Loans in Deposits Borrowings Assets
<S> <C> <C> <C> <C>
Company Name
CKF Bancorp, Inc. 8.43% -0.59% 36.62% 6.23%
Community Investors Bancorp, Inc. 6.77% 1.14% 77.61% 7.26%
FFD Financial Corporation 5.43% 1.32% NA 11.89%
Home Building Bancorp, Inc. -2.77% -5.20% 16.71% -0.92%
Joachim Bancorp, Inc. 0.70% -1.60% NA 5.84%
Lexington B&L Financial Corp. 6.44% 0.99% NA 9.11%
Logansport Financial Corp. 14.49% 5.02% NA 11.37%
London Financial Corporation 3.16% 0.48% 0.00% 5.94%
Mississippi View Holding Company -1.28% -1.34% NA 2.51%
Scotland Bancorp, Inc. 3.53% -3.69% NA 7.61%
Sobieski Bancorp, Inc. 3.44% -3.28% NA 2.45%
South Carolina Community Bancshares, Inc. 1.51% -2.86% NA 3.46%
Three Rivers Financial Corp. 2.00% -1.37% 109.62% 5.88%
Average: 3.99% -0.85% 48.11% 6.05%
Median: 3.44% -1.34% 36.62% 5.94%
Landis Savings Bank, SSB 7.05% 6.66% NA 6.20%
</TABLE>
Source: SNL Securities, Charlottesville, Virginia
<PAGE>
Exhibit XXXVII
Loan Portfolio Composition
Regulatory Data as of June 30, 1997
<TABLE>
<CAPTION>
Total Real Total Const & Total 1-4 Multifamily
Estate Loans Other Loans Dev Loans Family Loans Loans
06/97 Q 06/97 Q 06/97 Q 06/97 Q 06/97 Q
Company Name (% Gross Loans) (% Gross Loans) (% RE Loans) (% RE Loans) (% RE Loans)
- ------------ --------------- --------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
CKF Bancorp, Inc. 93.75% 6.25% 1.77% 83.02% 2.05%
Community Investors Bancorp, Inc. 87.77% 12.23% 0.69% 92.18% 1.62%
FFD Financial Corporation 98.95% 1.05% 1.26% 95.22% 2.10%
Home Building Bancorp, Inc. 77.83% 22.17% 1.03% 97.60% 0.34%
Joachim Bancorp, Inc. 98.16% 1.84% 0.61% 89.16% 1.56%
Lexington B&L Financial Corp. 92.29% 7.71% 2.46% 94.37% 0.24%
Logansport Financial Corp. 82.38% 17.62% 2.38% 88.78% 4.28%
London Financial Corporation 97.08% 2.92% 5.14% 81.27% 1.68%
Mississippi View Holding Company 79.60% 20.40% 1.24% 93.99% 1.13%
Scotland Bancorp, Inc. 99.14% 0.86% 0.19% 94.22% 2.22%
Sobieski Bancorp, Inc. 90.37% 9.63% 2.88% 94.98% 0.00%
South Carolina Community Bancshares, Inc. 96.14% 3.86% 3.48% 92.21% 0.03%
Three Rivers Financial Corp. 82.12% 17.88% 5.57% 83.15% 2.18%
Average: 90.43% 9.57% 2.21% 90.78% 1.49%
Median: 92.29% 7.71% 1.77% 92.21% 1.62%
Landis Savings Bank, SSB 99.65% 0.35% 0.00% 97.22% 1.31%
</TABLE>
Source: SNL Securities, VA
<PAGE>
Exhibit XXXVII
Loan Portfolio Composition
Regulatory Data as of June 30, 1997
<TABLE>
<CAPTION>
Total Other Commercial Consumer Allowance for
Real Estate Lns Loans Loans Loan Losses
06/97 Q 06/97 Q 06/97 Q 06/97 Q
Company Name (% RE Loans) (% Other Loans) (% Other Loans) (% Gross Loans)
- ------------ ------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C>
CKF Bancorp, Inc. 13.17% 14.15% 85.85% 0.20%
Community Investors Bancorp, Inc. 5.51% 11.85% 88.15% 0.58%
FFD Financial Corporation 1.42% 1.37% 98.63% 0.48%
Home Building Bancorp, Inc. 1.03% 21.31% 78.69% 0.29%
Joachim Bancorp, Inc. 8.67% 0.00% 100.00% 0.32%
Lexington B&L Financial Corp. 2.94% 0.00% 100.00% 0.44%
Logansport Financial Corp. 4.56% 0.00% 100.00% 0.38%
London Financial Corporation 11.91% 19.19% 80.81% 0.63%
Mississippi View Holding Company 3.65% 4.74% 95.26% 1.91%
Scotland Bancorp, Inc. 3.37% 26.33% 73.67% 0.50%
Sobieski Bancorp, Inc. 2.14% 76.95% 23.05% 0.35%
South Carolina Community Bancshares, Inc. 4.27% 45.33% 54.67% 0.81%
Three Rivers Financial Corp. 9.10% 18.39% 81.61% 0.78%
Average: 5.52% 18.43% 81.57% 0.59%
Median: 4.27% 14.15% 85.85% 0.48%
Landis Savings Bank, SSB 1.47% 0.00% 100.00% 0.78%
</TABLE>
Source: SNL Securities, VA
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Mississippi View Holding Company
Morrison County, MN
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 29,604 3.56 30,659 2.70 31,488
0-14 Age Group (%) 26.64 -0.93 26.39 -2.30 25.78
15-34 Age Group (%) 26.82 -9.00 24.41 -0.28 24.34
35-54 Age Group (%) 22.02 14.39 25.19 2.65 25.86
55+ Age Group (%) 24.51 -2.07 24.01 0.03 24.01
Total Households of area 10,399 4.24 10,840 3.28 11,196
$ 0-24K Households (%) 55.50 -18.66 45.14 -13.13 39.21
$25-49K Households (%) 33.36 1.88 33.99 -7.17 31.55
$50K+ Households (%) 11.15 87.31 20.88 40.07 29.24
Average Household Income 27,313 32.77 36,263 22.53 44,432
Median Household Income 22,224 25.96 27,994 14.18 31,963
Per Capita Income in area 9,679 33.56 12,927 23.50 15,965
</TABLE>
FFD Financial Corp
Tuscarawas County, OH
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 84,090 4.91 88,217 2.74 90,632
0-14 Age Group (%) 22.10 -1.47 21.77 -2.93 21.14
15-34 Age Group (%) 28.08 -11.43 24.87 -0.66 24.70
35-54 Age Group (%) 25.24 12.25 28.34 -0.13 28.30
55+ Age Group (%) 24.58 1.79 25.02 3.35 25.86
Total Households of area 31,971 5.04 33,582 3.01 34,592
$ 0-24K Households (%) 50.45 -22.77 38.96 -15.84 32.79
$25-49K Households (%) 37.43 -2.46 36.51 -7.79 33.67
$50K+ Households (%) 12.11 102.43 24.52 36.77 33.54
Average Household Income 29,199 33.48 38,975 22.57 47,772
Median Household Income 24,784 26.25 31,291 16.43 36,433
Per Capita Income in area 11,154 33.53 14,894 23.18 18,347
</TABLE>
Page 1
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Home Building Bancorp
Daviess County, IN
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 27,533 5.03 28,919 3.18 29,839
0-14 Age Group (%) 24.31 -1.02 24.06 -2.55 23.44
15-34 Age Group (%) 27.74 -7.65 25.62 -1.16 25.32
35-54 Age Group (%) 23.01 11.83 25.73 1.84 26.20
55+ Age Group (%) 24.95 -1.41 24.60 1.78 25.04
Total Households of area 10,012 3.31 10,343 2.88 10,641
$ 0-24K Households (%) 54.28 -17.63 44.72 -11.54 39.55
$25-49K Households (%) 33.66 0.79 33.93 -1.28 33.49
$50K+ Households (%) 12.06 77.16 21.36 26.20 26.95
Average Household Income 27,626 29.59 35,801 18.10 42,281
Median Household Income 22,820 22.97 28,062 11.67 31,337
Per Capita Income in area 10,140 27.53 12,932 18.60 15,337
</TABLE>
Home Building Bancorp
Pike County, IN
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 12,509 0.57 12,580 0.49 12,642
0-14 Age Group (%) 20.18 -3.13 19.55 -2.92 18.98
15-34 Age Group (%) 28.02 -9.44 25.37 -2.64 24.70
35-54 Age Group (%) 25.81 10.43 28.51 0.59 28.67
55+ Age Group (%) 25.99 2.25 26.57 4.03 27.65
Total Households of area 4,925 0.00 4,925 0.53 4,951
$ 0-24K Households (%) 54.52 -17.32 45.08 -13.21 39.12
$25-49K Households (%) 33.73 -3.61 32.51 1.59 33.02
$50K+ Households (%) 11.76 90.67 22.42 24.25 27.85
Average Household Income 27,732 27.47 35,351 18.23 41,794
Median Household Income 22,955 20.51 27,662 12.06 30,997
Per Capita Income in area 10,924 26.79 13,851 18.30 16,386
</TABLE>
Page 2
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Joachim Bancorp
Jefferson County, MO
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 171,380 11.40 190,912 7.09 204,446
0-14 Age Group (%) 25.39 -3.66 24.46 -4.19 23.43
15-34 Age Group (%) 32.87 -14.40 28.14 -5.51 26.59
35-54 Age Group (%) 26.12 12.84 29.48 0.54 29.64
55+ Age Group (%) 15.62 14.78 17.93 13.47 20.34
Total Households of area 59,199 11.89 66,239 7.55 71,240
$ 0-24K Households (%) 34.88 -17.82 28.66 -10.24 25.73
$25-49K Households (%) 44.16 -14.58 37.72 -12.05 33.17
$50K+ Households (%) 20.97 60.35 33.62 22.24 41.10
Average Household Income 35,283 24.23 43,832 16.73 51,165
Median Household Income 32,328 20.38 38,918 11.94 43,566
Per Capita Income in area 12,235 24.68 15,255 17.21 17,881
</TABLE>
Lexington B&L Financial Corp.
Lafayette County, MO
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 31,107 4.16 32,401 2.44 33,190
0-14 Age Group (%) 22.31 -1.48 21.98 -2.36 21.46
15-34 Age Group (%) 27.43 -7.53 25.37 -0.17 25.32
35-54 Age Group (%) 24.35 9.53 26.67 -1.15 26.36
55+ Age Group (%) 25.91 0.28 25.99 3.34 26.85
Total Households of area 11,732 2.09 11,977 2.07 12,225
$ 0-24K Households (%) 50.74 -18.85 41.18 -10.47 36.87
$25-49K Households (%) 36.12 2.44 37.00 -3.53 35.70
$50K+ Households (%) 13.14 66.10 21.82 25.75 27.44
Average Household Income 29,482 25.49 36,996 15.09 42,579
Median Household Income 24,646 20.27 29,641 8.77 32,240
Per Capita Income in area 11,362 23.09 13,986 15.25 16,119
</TABLE>
Page 3
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Logansport Financial Corp
Cass County, IN
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 38,413 1.24 38,889 1.51 39,475
0-14 Age Group (%) 21.79 -1.47 21.47 -2.77 20.88
15-34 Age Group (%) 28.24 -9.12 25.66 0.27 25.73
35-54 Age Group (%) 25.24 9.95 27.75 -1.34 27.38
55+ Age Group (%) 24.73 1.55 25.12 3.57 26.01
Total Households of area 14,659 1.52 14,882 1.77 15,146
$ 0-24K Households (%) 47.72 -18.07 39.09 -12.03 34.39
$25-49K Households (%) 37.67 -4.69 35.90 -5.60 33.89
$50K+ Households (%) 14.61 71.11 25.00 26.85 31.72
Average Household Income 30,720 26.30 38,799 17.83 45,718
Median Household Income 26,004 20.39 31,307 11.97 35,055
Per Capita Income in area 11,881 27.25 15,118 18.86 17,970
</TABLE>
London Financial Corp.
Madison County, OH
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 37,068 12.02 41,525 5.51 43,813
0-14 Age Group (%) 20.71 -3.94 19.89 -2.95 19.30
15-34 Age Group (%) 34.94 -8.28 32.05 -2.53 31.24
35-54 Age Group (%) 26.61 9.22 29.06 -0.82 28.82
55+ Age Group (%) 17.74 7.07 19.00 8.61 20.63
Total Households of area 11,990 10.58 13,258 6.65 14,140
$ 0-24K Households (%) 40.51 -27.22 29.48 -15.04 25.05
$25-49K Households (%) 38.47 -5.98 36.17 -10.75 32.28
$50K+ Households (%) 21.03 63.37 34.35 24.23 42.67
Average Household Income 35,075 34.28 47,098 22.07 57,494
Median Household Income 30,100 24.50 37,474 14.63 42,958
Per Capita Income in area 11,974 32.22 15,832 21.56 19,246
</TABLE>
Page 4
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Sobieski Bancorp, Inc.
St. Joseph County, IN
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 247,052 4.82 258,965 2.55 265,558
0-14 Age Group (%) 21.43 -1.18 21.18 -2.40 20.67
15-34 Age Group (%) 32.13 -9.28 29.15 -3.16 28.23
35-54 Age Group (%) 23.55 15.62 27.23 3.27 28.12
55+ Age Group (%) 22.89 -1.94 22.44 2.40 22.98
Total Households of area 92,365 4.53 96,553 2.74 99,202
$ 0-24K Households (%) 43.68 -24.16 33.13 -17.48 27.34
$25-49K Households (%) 36.41 -9.29 33.02 -9.42 29.91
$50K+ Households (%) 19.91 70.01 33.85 26.30 42.75
Average Household Income 35,124 35.87 47,723 24.30 59,322
Median Household Income 28,348 27.95 36,271 17.03 42,447
Per Capita Income in area 13,324 35.57 18,063 24.79 22,540
</TABLE>
Scotland Bancorp, Inc.
Scotland County, NC
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 33,754 5.50 35,611 3.82 36,973
0-14 Age Group (%) 24.18 -3.67 23.29 -3.01 22.59
15-34 Age Group (%) 31.42 -6.16 29.49 0.44 29.62
35-54 Age Group (%) 25.51 8.73 27.74 -2.23 27.12
55+ Age Group (%) 18.89 3.16 19.48 6.10 20.67
Total Households of area 11,837 5.80 12,523 4.07 13,033
$ 0-24K Households (%) 53.78 -24.82 40.43 -17.44 33.38
$25-49K Households (%) 32.84 -6.50 30.70 -10.34 27.53
$50K+ Households (%) 13.38 115.72 28.87 35.43 39.09
Average Household Income 27,608 47.72 40,782 32.66 54,103
Median Household Income 22,669 38.14 31,315 23.85 38,783
Per Capita Income in area 9,805 47.28 14,441 33.09 19,220
</TABLE>
Page 5
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Scotland Bancorp, Inc.
Moore County, NC
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 59,013 17.95 69,606 10.11 76,642
0-14 Age Group (%) 18.90 -2.20 18.48 -1.69 18.17
15-34 Age Group (%) 26.32 -8.36 24.12 -2.23 23.59
35-54 Age Group (%) 22.59 11.78 25.25 1.28 25.57
55+ Age Group (%) 32.19 -0.14 32.15 1.63 32.67
Total Households of area 23,827 17.99 28,113 10.51 31,067
$ 0-24K Households (%) 44.46 -23.26 34.12 -15.85 28.71
$25-49K Households (%) 36.13 -6.94 33.62 -11.64 29.71
$50K+ Households (%) 19.41 66.19 32.26 28.90 41.58
Average Household Income 36,550 34.89 49,301 22.92 60,603
Median Household Income 28,060 27.34 35,733 16.24 41,536
Per Capita Income in area 14,897 35.97 20,255 24.66 25,249
</TABLE>
South Carolina Community Bancshares
Fairfield County, SC
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 22,295 -0.11 22,270 -0.64 22,127
0-14 Age Group (%) 23.34 -3.77 22.46 -2.09 21.99
15-34 Age Group (%) 30.87 -5.98 29.03 -1.56 28.57
35-54 Age Group (%) 23.53 11.98 26.35 1.64 26.79
55+ Age Group (%) 22.26 -0.41 22.16 2.22 22.66
Total Households of area 7,467 1.55 7,583 0.47 7,619
$ 0-24K Households (%) 55.04 -13.89 47.40 -12.68 41.38
$25-49K Households (%) 32.82 -6.75 30.61 -3.09 29.66
$50K+ Households (%) 12.13 81.29 22.00 31.63 28.95
Average Household Income 26,891 30.30 35,038 21.25 42,485
Median Household Income 21,782 22.26 26,630 14.17 30,404
Per Capita Income in area 9,103 32.54 12,065 23.38 14,886
</TABLE>
Page 6
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Three Rivers Financial Corp.
St. Joseph County, MI
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 58,913 4.01 61,273 2.80 62,991
0-14 Age Group (%) 24.34 -1.77 23.91 -2.95 23.21
15-34 Age Group (%) 29.22 -11.31 25.92 -2.11 25.37
35-54 Age Group (%) 24.54 13.49 27.85 0.51 27.99
55+ Age Group (%) 21.89 1.94 22.32 4.97 23.43
Total Households of area 21,579 3.16 22,260 2.77 22,877
$ 0-24K Households (%) 44.93 -26.37 33.08 -19.36 26.68
$25-49K Households (%) 38.30 -12.77 33.41 -12.43 29.25
$50K+ Households (%) 16.78 99.77 33.51 31.50 44.07
Average Household Income 32,527 41.42 45,999 27.25 58,535
Median Household Income 27,597 33.20 36,759 19.88 44,066
Per Capita Income in area 12,000 40.21 16,825 27.32 21,421
</TABLE>
Three Rivers Financial Corp.
Cass County, MI
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 49,477 1.53 50,232 1.87 51,172
0-14 Age Group (%) 22.62 -2.30 22.10 -2.88 21.46
15-34 Age Group (%) 28.47 -9.69 25.71 -0.86 25.48
35-54 Age Group (%) 26.13 9.63 28.65 -1.51 28.21
55+ Age Group (%) 22.78 3.35 23.55 5.48 24.84
Total Households of area 18,239 1.75 18,558 2.19 18,964
$ 0-24K Households (%) 44.60 -27.14 32.50 -17.49 26.81
$25-49K Households (%) 38.30 -9.23 34.77 -17.43 28.71
$50K+ Households (%) 17.10 91.49 32.74 35.88 44.48
Average Household Income 32,855 40.46 46,147 27.45 58,813
Median Household Income 28,113 31.19 36,882 19.31 44,005
Per Capita Income in area 12,145 40.77 17,096 27.84 21,855
</TABLE>
Page 7
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Three Rivers Financial Corp.
Kalamazoo County, MI
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 223,411 2.87 229,826 1.78 233,911
0-14 Age Group (%) 20.73 0.04 20.73 -2.88 20.14
15-34 Age Group (%) 36.23 -13.27 31.42 -4.95 29.86
35-54 Age Group (%) 24.82 15.07 28.57 1.90 29.11
55+ Age Group (%) 18.22 5.81 19.28 8.36 20.89
Total Households of area 83,702 3.52 86,645 1.94 88,328
$ 0-24K Households (%) 39.87 -20.26 31.80 -13.74 27.43
$25-49K Households (%) 34.82 -14.99 29.60 -12.00 26.05
$50K+ Households (%) 25.31 52.55 38.60 20.52 46.52
Average Household Income 38,252 35.01 51,643 23.67 63,867
Median Household Income 31,184 28.04 39,929 15.19 45,996
Per Capita Income in area 14,529 35.05 19,621 23.95 24,321
</TABLE>
Landis Savings Bank, SSB
Rowan County, NC
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 110,605 11.51 123,340 8.11 133,349
0-14 Age Group (%) 20.01 -1.13 19.79 -1.17 19.55
15-34 Age Group (%) 29.89 -10.26 26.82 -3.86 25.78
35-54 Age Group (%) 24.99 11.97 27.98 1.36 28.36
55+ Age Group (%) 25.12 1.20 25.42 3.49 26.30
Total Households of area 42,512 9.55 46,570 7.92 50,258
$ 0-24K Households (%) 47.21 -20.19 37.68 -13.96 32.42
$25-49K Households (%) 37.36 -6.87 34.79 -8.23 31.93
$50K+ Households (%) 15.43 78.38 27.53 29.51 35.65
Average Household Income 30,810 33.33 41,079 20.89 49,662
Median Household Income 26,345 25.09 32,956 13.90 37,537
Per Capita Income in area 11,981 30.16 15,595 20.60 18,807
</TABLE>
Page 8
<PAGE>
Exhibit XXXVIII
Comparative Companies'
Demographic Data by County
Landis Savings Bank, SSB
Cabarrus County, NC
<TABLE>
<CAPTION>
% % 5-year
Base Change Current Change Projected
1990 '90-97 1997 '97-2002 2002
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Population of area 98,935 16.20 114,965 10.89 127,489
0-14 Age Group (%) 20.09 -0.47 19.99 -2.06 19.58
15-34 Age Group (%) 30.70 -12.40 26.89 -4.10 25.79
35-54 Age Group (%) 26.76 11.95 29.95 1.08 30.28
55+ Age Group (%) 22.46 3.13 23.16 5.14 24.35
Total Households of area 37,515 14.44 42,931 10.68 47,517
$ 0-24K Households (%) 41.16 -22.71 31.82 -16.04 26.71
$25-49K Households (%) 37.14 -12.31 32.56 -11.62 28.78
$50K+ Households (%) 21.70 64.14 35.62 24.95 44.51
Average Household Income 35,460 35.21 47,947 22.44 58,707
Median Household Income 30,216 26.45 38,208 15.71 44,209
Per Capita Income in area 13,532 32.84 17,976 22.59 22,037
</TABLE>
Source: SNL Securities LC and Claritas
Page 9
<PAGE>
Exhibit XXXIX
Recent Thrify Conversions
<TABLE>
<CAPTION>
Offer Price to Offer Price to Offer Price to Offer Price to
IPO Gross IPO Pro Forma Pro Forma Pro Forma Pro Forma
Proceeds Price P.F. Book Tangible Book P. F. EPS P.F. Assets
Company Name IPO Date ($000) ($) (%) (%) (x) (%)
- ------------ -------- --------- ----- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
First SecurityFed Financial, Inc. 10/31/1997 64,080 10.000 75.18 75.18 14.90 19.8
Oregon Trail Financial Corp. 10/06/1997 46,949 10.000 76.63 76.63 18.50 18.7
Riverview Bancorp, Inc. 10/01/1997 NA 10.000 NA 0.00 NA NA
SHS Bancorp, Inc. 10/01/1997 8,200 10.000 70.73 70.73 13.90 9.1
Ohio State Financial Services, Inc. 09/29/1997 6,332 10.000 63.33 63.33 17.00 15.7
FirstSpartan Financial Corp. 07/09/1997 88,608 20.000 72.98 72.98 26.00 19.1
GSB Financial Corporation 07/09/1997 22,483 10.000 73.44 73.44 23.20 18.9
FirstBank Corporation 07/02/1997 19,838 10.000 71.93 71.93 19.20 13.0
Community First Banking Company 07/01/1997 48,271 20.000 72.74 72.74 36.10 12.0
HCB Bancshares, Inc. 05/07/1997 26,450 10.000 71.95 71.95 29.00 13.4
Peoples-Sidney Financial Corp 04/28/1997 17,854 10.000 71.24 71.24 11.50 17.0
Hemlock Federal Financial Corp 04/02/1997 20,763 10.000 71.62 71.62 37.50 12.4
GS Financial Corp. 04/01/1997 34,385 10.000 63.75 63.75 38.70 28.4
Market Financial Corporation 03/27/1997 13,357 10.000 71.07 71.07 26.20 22.7
Empire Federal Bancorp, Inc. 01/27/1997 25,921 10.000 68.09 68.09 21.50 23.0
FirstFed America Bancorp, Inc. 01/15/1997 87,126 10.000 72.02 72.02 13.60 10.7
Roslyn Bancorp, Inc. 01/13/1997 423,714 10.000 71.98 71.98 9.30 21.0
Advance Financial Bancorp 01/02/1997 10,845 10.000 71.09 71.09 16.80 10.6
Home City Financial Corporation 12/30/1996 9,522 10.000 71.20 71.20 13.70 14.6
Century Bancorp, Inc. 12/23/1996 20,367 50.000 72.11 72.11 18.90 20.0
Southern Community Bancshares 12/23/1996 11,374 10.000 74.39 74.39 14.50 15.0
Big Foot Financial Corporation 12/20/1996 25,128 10.000 72.67 72.67 33.10 11.4
River Valley Bancorp 12/20/1996 11,903 10.000 72.96 72.96 15.20 12.1
Maximum: 423,714 50.000 76.63 76.63 38.70 28.4
Minimum: 6,332 10.000 63.33 0.00 9.30 9.1
Average: 47,430 12.609 71.50 68.40 21.29 16.3
Median: 21,623 10.000 71.97 71.95 18.70 15.4
Aggregate: 1,043,470 NA NA NA NA NA
</TABLE>
Source: SNL Securities, Charlottesville, VA
<PAGE>
Exhibit XXXIX
Recent Thrify Conversions
<TABLE>
<CAPTION>
Price Chg Price Chg Price Chg Price Chg Price/ Price/
Since IPO Since IPO Since IPO Since IPO Price LTM Price/ Tangible Price/
1 Day 1 Week 1 Month 3 Months 12/3/97 Earnings Book Book Assets
Company Name (%) (%) (%) (%) ($) (x) (%) (%) (%)
- ------------ --------- --------- --------- --------- ------- -------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First SecurityFed Financial, Inc. 50.63 51.88 60.63 NA 16.500 NA NA NA NA
Oregon Trail Financial Corp. 67.50 64.38 60.00 NA 15.938 NA NA NA NA
Riverview Bancorp, Inc. 31.88 35.00 32.50 NA 15.125 NA 158.21 164.22 32.84
SHS Bancorp, Inc. 47.50 52.10 60.00 NA 15.870 NA 110.28 110.28 14.71
Ohio State Financial Services, Inc. 55.00 52.50 49.60 NA 14.750 NA 89.56 89.56 24.26
FirstSpartan Financial Corp. 83.44 85.00 78.13 93.75 37.875 NA 129.84 129.84 34.79
GSB Financial Corporation 46.25 47.50 43.75 57.50 16.125 NA NA NA NA
FirstBank Corporation 58.13 57.50 77.50 73.75 18.625 NA 116.48 116.48 20.77
Community First Banking Company 59.38 64.38 71.25 88.75 38.500 NA 122.26 123.91 23.55
HCB Bancshares, Inc. 26.25 26.25 28.75 39.38 13.625 NA 94.42 97.95 18.02
Peoples-Sidney Financial Corp 25.63 30.00 32.50 56.25 17.250 NA 109.73 109.73 29.95
Hemlock Federal Financial Corp 28.75 28.75 27.50 38.75 17.000 NA 112.88 112.88 21.80
GS Financial Corp. 33.75 35.00 40.63 53.75 18.125 NA 110.25 110.25 47.55
Market Financial Corporation 29.38 25.00 26.25 35.00 15.688 NA 105.36 105.36 37.34
Empire Federal Bancorp, Inc. 32.50 32.50 37.50 31.25 16.500 NA 106.38 106.38 38.69
FirstFed America Bancorp, Inc. 36.25 41.25 48.75 37.50 20.750 NA 132.76 132.76 17.44
Roslyn Bancorp, Inc. 50.00 58.75 60.00 58.75 23.188 NA 165.16 165.98 29.13
Advance Financial Bancorp 28.75 28.75 40.00 38.75 17.750 NA 118.25 118.25 18.21
Home City Financial Corporation NA 26.25 33.13 35.00 17.375 NA 114.31 114.31 22.42
Century Bancorp, Inc. 25.25 32.00 30.00 36.00 83.000 NA 110.59 110.59 33.49
Southern Community Bancshares 30.00 37.50 35.00 40.00 18.000 NA 136.47 136.47 29.09
Big Foot Financial Corporation 23.13 26.25 40.00 45.00 18.375 NA 122.75 122.75 21.46
River Valley Bancorp 36.88 37.50 48.13 43.75 18.125 NA 122.47 124.23 15.58
Maximum: 83.44 85.00 78.13 93.75 83.000 165.16 165.98 47.55
Minimum: 23.13 25.00 26.25 31.25 13.625 89.56 89.56 14.71
Average: 41.19 42.43 46.15 50.16 21.916 119.42 120.11 26.55
Median: 35.00 37.50 40.63 41.88 17.375 115.40 115.40 23.91
Aggregate: NA NA NA NA NA NA NA NA NA
</TABLE>
Source: SNL Securities, Charlottesville, VA
<PAGE>
Exhibit XXXX
Calculation of Net Return on Conversion Proceeds
The assumptions underlying the net return assumed on conversion proceeds are as
follows:
1. The net average proceeds received by the Savings Bank are invested to
yield a pre-tax return of 5.26% (3.37% after tax), which represents the
average of the Savings Bank's yield on the one year treasury bill on
December 3, 1997.
2. The total amount of net conversion proceeds, net of $1.6 million for
investment in Kings Grant branch, is invested at the beginning of the
applicable period.
3. An aggregate tax rate, inclusive of state and federal income taxes, of 36%
is used.
4. Estimated fixed conversion expenses are assumed to be $450,000.
5. No effect is given to the possible withdrawals from deposit accounts to
purchase conversion stock.
Calculation of Marginal Rate of Return
Pre-tax rate of return on conversion proceeds 5.26%
Less: Federal and state income taxes at 36 % 1.89%
----
Net return on conversion proceeds 3.37%
====
<PAGE>
Exhibit XXXXI
Pro Forma Mid-Point Analysis
Name of Savings Bank: Landis Savings Bank, SSB
Date of Valuation Letter: December 8, 1997
Date of Market Data: December 3, 1997
<TABLE>
<CAPTION>
Comparative Group All Publicly Thrifts
----------------- --------------------
Symbol Value Mean Median Mean Median
------ ----- ---- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C>
Price/Earnings Ratio (1) P/E
Twelve Months (Adjusted) Ending 09/30/97 (x) 30.10 21.47 18.48 19.04 18.26
Pro Forma Minimum 28.00
Pro Forma Maximum 21.80
Pro Forma Supermaximum 33.40
Price/Book Ratio P/B 69.24 118.31 116.26 167.00 156.07
Pro Forma Minimum (%) 64.78
Pro Forma Maximum 72.96
Pro Forma Supermaximum 76.53
Price/Tangible Book Ratio P/B 69.24 118.35 116.26 173.78 158.45
Pro Forma Minimum (%) 64.78
Pro Forma Maximum 72.96
Pro Forma Supermaximum 76.53
Price/Assets Ratio P/A 23.38 24.41 22.41 18.20 16.89
Pro Forma Minimum (%) 20.50
Pro Forma Maximum 26.08
Pro Forma Supermaximum 28.99
Key Assumptions:
Earnings Base
12 months ended September 30, 1997 Y 166,176
Book Value B 4,399,568
Tangible Book Value B 4,399,568
Total Assets A 24,234,080
Estimated Fixed Expenses E 450,000
Net Return on Conversion Proceeds R 3.37%
Percent Sold on Commission S 0
Average Underwriting Commission C 0
ESOP Purchase P 560,000
Depositor Recognition Plan e 56,000
Management Recognition Plan M 280,000
Management Recognition Plan Annual Expense m 56,000
</TABLE>
<PAGE>
Exhibit XXXXI (Page 2)
Pro Forma Mid-Point Analysis
Calculation of Estimated Value in a Standard Conversion
1. V =P/E (Y - R x E)/1- P/E (R( 1- C x S)) = $7,000,000
1. V =P/B (B - E - P)/1- P/B (1- C x S) = $6,999,561
1. V =P/A (A - E)/1- P/A (1- C x S) = $7,000,000
Estimated Pro Forma Valuation Estimated Pro Forma
Conversion Value Date: 12/03/97 Conversion Valuation Range
$7,000,000 Minimum $7,000,000 85.00% = $5,950,000
Maximum $7,000,000 115.00% = $8,050,000
Supermaximum $7,000,000 132.25% = $9,257,500
Pro Forma Shares Pro Forma Price Range
-----------------------------------------------
Minimum Midpoint Maximum Supermax
------- -------- ------- --------
Shares 595,000 700,000 805,000 925,750
Value 5,950,000 7,000,000 8,050,000 9,257,500
