<PAGE>
As filed with the Securities and Exchange Commission on April 30, 1998
Registration No. 333-49277
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
Pre-Effective Amendment
No.1 to
FORM SB-2
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------
HOMESTEAD BANCORP, INC.
(Exact name of registrant as specified in its articles of incorporation)
<TABLE>
<CAPTION>
<S> <C> <C>
Louisiana 6711 (Being Applied For)
------------------------------- ------------------------- --------------------
(State or other jurisdiction of (Primary Standard (I.R.S. Employer
incorporation or organization) Industrial Classification Identification No.)
Code Number)
</TABLE>
195 North Sixth Street
Ponchatoula, Louisiana 70454
(504) 386-3379
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
Lawrence C. Caldwell, Jr.
President and Chief Executive Officer
Homestead Bancorp, Inc.
195 North Sixth Street
Ponchatoula, Louisiana 70454
(Name, address, including zip code, and telephone number, including area
code, of agent for service)
Copy to:
Gerald F. Heupel, Jr., Esq.
Kevin M. Houlihan, Esq.
Elias, Matz, Tiernan & Herrick L.L.P.
734 15th Street, N.W.
12th Floor
Washington, D.C. 20005
(202) 347-0300
___________
Approximate date of commencement of proposed sale to public: As soon as
practicable after this Registration Statement becomes effective.
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. [ X ]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Proposed
Title of each Maximum
Class of Amount Purchase Aggregate Amount of
Securities to to be Price Offering Registration
be Registered Registered Per Share Price Fee
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock,
$.01 par value
per share 1,511,669 shares $10.00 $15,116,690(1) $4,461 (2)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
(1) Estimated solely for the purpose of calculating the registration fee.
(2) Previously paid. The registration fee originally paid was the correct
amount for the current number of shares requested rather than for the
lesser number of shares originally requested. The orginal number of shares
requested had been inadvertently understated.
The Registrant hereby amends this Registration Statement on such date as
may be necessary to delay its effective date until the Registrant shall file a
further amendment which specifically states that the Registration Statement
shall thereafter become effective in accordance with section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission acting pursuant to said section 8(a)
may determine.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
PROSPECTUS SUPPLEMENT
HOMESTEAD BANCORP, INC.
COMMON STOCK, $.01 PAR VALUE
PONCHATOULA HOMESTEAD ASSOCIATION
EMPLOYEES 401(K) PROFIT SHARING PLAN
(_______ Shares and Participations Therein)
This Prospectus Supplement relates to the offer and sale to participants
(the "Participants") in the Ponchatoula Homestead Association Employees 401(k)
Profit Sharing Plan (the "Plan") of Ponchatoula Homestead Savings, F.A. (the
"Association" or the "Employer") of up to ________ shares of common stock, par
value $.01 per share (the "Common Stock"), of Homestead Bancorp, Inc. (the
"Company") and participation interests in the Plan, as set forth herein.
In connection with the proposed conversion of Homestead Mutual Holding
Company (the "Mutual Holding Company") from mutual to stock form, the merger of
the Mutual Holding Company into the Association, the reorganization of the
Association to the stock holding company structure as a subsidiary of the
Company, and the offering of the Company's Common Stock in accordance with a
Plan of Conversion (collectively, the "Conversion"), Participants in the Plan
may direct the Trustees of the Plan to purchase Common Stock offered in the
Conversion with amounts held in the Plan attributable to such Participants.
Shares of common stock of the Association ("Association Common Stock") currently
held in the Plan will automatically be exchanged for the Company's Common Stock
upon consummation of the Conversion. This Prospectus Supplement relates to the
election of a Participant to direct the purchase of the Company's Common Stock
in the Conversion from assets in the Plan other than the Association Common
Stock Fund.
The Prospectus dated May __, 1998 of the Company (the "Prospectus"), which
is attached to this Prospectus Supplement, includes detailed information with
respect to the Company, the Conversion, the Common Stock and the financial
condition, results of operations, and business of the Association. The Summary
Plan Description of the Plan, attached hereto, along with this Prospectus
Supplement provides detailed information with respect to the Plan and should be
read only in conjunction with the Prospectus.
For a discussion of certain factors that should be considered by each
Participant, see "Risk Factors" beginning on page __ of the Prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION, THE OFFICE OF THRIFT SUPERVISION OR ANY OTHER FEDERAL
AGENCY OR STATE SECURITIES COMMISSION, NOR HAS SUCH COMMISSION, OFFICE OR OTHER
AGENCY OR COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS
SUPPLEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE SHARES OF COMMON STOCK OFFERED HEREBY ARE NOT SAVINGS ACCOUNTS OR
DEPOSITS AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENT AGENCY.
The date of this Prospectus Supplement is May ___, 1998.
<PAGE>
Description of the Plan
Attached to this Prospectus Supplement is the Summary Plan Description,
which provides detailed information concerning the Plan and its terms. Also
included herein are the most recent financial statements for the Plan, as well
as information concerning the investment return for the past five calendar years
for each of the investment funds to which Participants may currently make
contributions pursuant to the Plan.
Method of Directing Transfer
Included with this Prospectus Supplement is a form to direct a transfer
among investment funds (the "Transfer Direction Form"). If a Participant wishes
to transfer all or part of his or her beneficial interest in the assets of the
Plan (other than his or her interest in the Association's Common Stock) to the
purchase of Common Stock in the Conversion, he or she should indicate that
decision on the Transfer Direction Form. If a Participant does not wish to make
such an election, he or she does not need to take any action.
Time for Directing Transfer
The deadline for submitting a direction to transfer amounts to purchase the
Company's Common Stock in the Conversion is ________ ___, 1998. The Transfer
Direction Form should be returned to the Plan Administrator by noon, Central
Time, on such date.
Irrevocability of Transfer Direction
A Participant's direction to transfer amounts credited in the Plan to his
or her accounts to purchase Common Stock in the Conversion generally shall be
irrevocable until completion or termination of the Conversion. However,
subscribers for the Common Stock offered in the Conversion may be resolicited
and given the right to modify or cancel their orders under certain circumstances
specified in the Prospectus, and in such event Participants will be given the
same opportunity to modify or cancel their transfer directions. See "The
Conversion - Stock Pricing, Exchange Ratio and Number of Shares to be Issued" in
the accompanying Prospectus.
2
<PAGE>
Investment Return Summary
The following table shows the annual returns in each of the last five
calendar years for each of the investment alternatives currently available to
Participants in the Plan.
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993
Total Total Total Total Total
Fund Return Return Return Return Return
- -------------------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Zurich Money Market 5.37% 5.22% 5.67% 3.99% 2.88%
Kemper Horizon 5 11.82 9.43 -- -- --
Kemper Horizon 10 15.98 12.30 -- -- --
Kemper Horizon 20 18.90 15.11 -- -- --
Kemper Small Cap Value 20.02 29.60 43.29 0.15 2.54
Kemper-Dreman High Return 31.92 28.79 46.86 (0.99) 9.22
Equity
Kemper High Yield 11.51 13.49 17.46 (1.72) 20.29
Kemper U.S. Government 9.03 2.83 18.37 (3.06) 6.31
Securities
Kemper Blue Chip 26.21 27.70 31.72 (5.16) 3.02
</TABLE>
The foregoing table does not reflect performance information for the
Association's Common Stock because the stock is not actively traded. The future
performance of the Common Stock of the Company will depend on several factors,
including the future performance of the Company as well as the fluctuation of
securities prices in general. There can be no assurance that the Company's
Common Stock will perform better than any of the other investment alternatives
set forth above.
Purchase Price of Common Stock
The funds transferred for the purchase of Common Stock in the Conversion
will be used by the Trustees to purchase Common Stock through the exercise of
subscription rights granted to the Participants in the Plan under the Plan of
Conversion and Agreement of Reorganization ("Plan of Conversion") adopted by the
Mutual Holding Company, the Association and the Company. The price paid for
such shares of Common Stock will be the same $10.00 price per share as is paid
by all other persons who purchase Common Stock in the Conversion.
3
<PAGE>
The following financial information was obtained from the Plan's Form 5500
filed with the Internal Revenue Service for the 1997 Plan Year:
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
Assets:
Cash $679,240
Investments:
Corporate debt and equity instruments 143,750
--------
Total assets 822,990
Liabilities:
Total liabilities 0
---------
Net assets $822,990
---------
---------
</TABLE>
<TABLE>
<CAPTION>
Year Ended
December 31, 1997
-----------------
<S> <C>
Income:
Contributions received or receivable in cash from Employer(s)
(including contributions on behalf of self-employed
individuals) $ 76,604
Earnings from investments (interest, dividends, rents,
royalties) 56,107
Insurance refunds 823
--------
Total income 133,534
--------
Expenses:
Distribution of benefits and payments to provide benefits
directly to participants or their beneficiaries 123,471
Insurance premiums and other expenses 14,401
--------
Total expenses 137,872
--------
Net income (loss) $(4,338)
--------
--------
</TABLE>
4
<PAGE>
EXHIBIT A TO PROSPECTUS SUPPLEMENT
TRANSFER DIRECTION FORM
<PAGE>
PONCHATOULA HOMESTEAD ASSOCIATION EMPLOYEES 401(K)
PROFIT SHARING PLAN
TRANSFER DIRECTION FORM
Social Security # _____________________ Date of Birth ____/____/____
Date of Hire ____/____/____
Name
--------------------------------------------------------------------------
Last First Middle Initial
1. Instructions. You may use this form to direct a transfer of all or part of
the funds credited to your account in the Plan (other than Association Common
Stock held by the Plan) to be used to purchase Common Stock of the Company in
the Conversion. Shares of Association Common Stock currently held in the Plan
will automatically be exchanged for the Company's Common Stock upon consummation
of the Conversion. To direct a transfer, you should complete and file this form
with the Plan Administrator, no later than noon, Central Time, on _______ ___,
1998. If you need assistance in completing the form, please contact Lawrence C.
Caldwell, Jr. at (504) 386-3379.
2. Transfer Direction. I hereby direct the Plan Administrator to transfer my
beneficial interest in the Plan to purchase Common Stock of the Company in the
Conversion in the following designated amounts:
Opposite each fund enter the dollar amount to be transferred from such fund
to purchase the Company's Common Stock.
<TABLE>
<CAPTION>
<S> <C>
Zurich Money Market Fund $_______________
Kemper Horizon 5 $_______________
Kemper Horizon 10 $_______________
Kemper Horizon 20 $_______________
Kemper U.S. Government Securities $_______________
Kemper High Yield $_______________
Kemper Blue Chip $_______________
Kemper Small Cap Value $_______________
Kemper - Dreman High Return Equity $_______________
</TABLE>
<PAGE>
3. Effectiveness of Direction. I understand that this Transfer Direction Form
shall be subject to all the terms and conditions of the Plan. I acknowledge
that I have received a copy of the Prospectus and the Prospectus Supplement.
- ------------------------------ -------------------------
Signature of Participant Date
* * * *
4. Acknowledgement of Receipt. This Transfer Direction Form was received by
the Plan Administrator on the date noted below.
- ------------------------------ -------------------------
Plan Administrator Date
<PAGE>
EXHIBIT B TO PROSPECTUS SUPPLEMENT
SUMMARY PLAN DESCRIPTION
<PAGE>
---------------------------------------------
Ponchatoula Homestead Association Employees
401(k) Profit Sharing Plan
SUMMARY PLAN DESCRIPTION
---------------------------------------------
Effective: January 1, 1998
<PAGE>
<TABLE>
<CAPTION>
Summary Plan Description
Table of Contents
<S> <C> <C>
ARTICLE DESCRIPTION PAGE
I INTRODUCTION 1
II GENERAL INFORMATION ABOUT YOUR PLAN 2
III PARTICIPATION IN YOUR PLAN 3
IV EMPLOYEE CONTRIBUTIONS 4
V EMPLOYER CONTRIBUTIONS 6
VI VESTING 8
VII SERVICE RULES 9
VIII COMPENSATION 10
IX PARTICIPANTS' ACCOUNTS 11
X DISTRIBUTIONS AND BENEFITS UNDER YOUR PLAN 13
XI BENEFIT PAYMENT OPTIONS 17
XII TOP-HEAVY RULES 18
XIII PARTICIPANT LOAN PROGRAM 19
XIV MISCELLANEOUS 22
XV STATEMENT OF ERISA RIGHTS 24
</TABLE>
<PAGE>
----------------------------------------
Article I
INTRODUCTION
----------------------------------------
In order to recognize the hard work and good efforts of its employees, your
Employer, Ponchatoula Homestead Savings, FA, (the "Employer") established the
Ponchatoula Homestead Association Employees 401(k) Profit Sharing Plan (the
"Plan"), for the exclusive benefit of all eligible employees and their
beneficiaries. The original effective date of the Plan was January 1, 1956.
However, this Summary Plan Description reflects the terms of the Plan under the
most recent amendment, effective January 1, 1998. The Plan allows eligible
employees to defer part of their income on a tax-favored basis into the Plan.
The contributions which you make to the Plan as 401(k) salary deferrals are also
called "salary reduction" contributions because your current taxable income is
reduced for every dollar you deposit into the Plan.
Also. the money in the Plan grows tax free until your retirement. However, you
must pay taxes when the money is paid out, unless it is transferred to another
retirement plan or an IRA. You may also be eligible for benefits in the event of
your death, total disability or other termination of your employment with the
Employer. This Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
This Summary Plan Description is a brief description of your Plan and your
rights and benefits under the Plan. This Summary Plan Description is not meant
to interpret or change the provisions of your Plan. A copy of your Plan is on
file at your Employer's office and may be read by you, your beneficiaries, or
your legal representatives at any reasonable time. If you have any questions
regarding either your Plan or this Summary Plan Description, you should ask your
Plan Administrator. If any discrepancies exist between this Summary Plan
Description and the actual provisions of the Plan, the Plan shall govern.
1
<PAGE>
----------------------------------------
Article II
GENERAL INFORMATION ABOUT YOUR PLAN
----------------------------------------
Plan Name: Ponchatoula Homestead Association Employees
401(k) Profit Sharing Plan
Employer: Ponchatoula Homestead Savings, FA
195 North Sixth St.
Ponchatoula, LA 70454
(504) 386-3379
Employer I.D. No: 72-1271955
Plan Number: 001
Type of Plan: Cash or Deferred Arrangement (401(k) Plan)
Administration Type: Administration by Trustee
Plan Administrator: Ponchatoula Homestead Savings, FA
195 North Sixth St.
Ponchatoula, LA 70454
(504) 386-3379
Legal Agent: Ponchatoula Homestead Savings, FA
195 North Sixth St.
Ponchatoula, LA 70454
(504) 386-3379
(Legal Process may also be served on the Trustee
or Plan Administrator.)
Trustees: L.C. Caldwell Jr.
Dennis E. James
Kelly B. Morse
Trustees Address: 195 North Sixth St.
Ponchatoula, LA 70454
(504) 386-3379
Funding Arrangement: Trust
Plan Year: January 1st to December 31st
Limitation Year: January 1st to December 31st
Anniversary Date: December 31st
2
<PAGE>
----------------------------------------
Article III
PARTICIPATION IN YOUR PLAN
----------------------------------------
Before you become a Participant in the Plan, there are certain eligibility and
participation requirements which you must meet. These requirements are explained
in this section.
Eligible Employees:
All of your Employer's employees are considered Eligible Employees and may
participate in the Plan, once they meet the Eligibility and Participation
Requirements, except members of a collective bargaining unit whose retirement
benefits were the subject of a collective bargaining agreement that is in full
force and effect, and non-resident aliens with no U.S. source of income.
Eligibility Requirements:
In order to be eligible for discretionary Employer contributions, you must have
attained age 20 and have completed 6 months of service.
To be eligible to enroll in the salary reduction portion of the Plan you must
have attained age 20 and completed 6 months of service.
In order to be eligible for matching contributions, you must be making 401(k)
contributions to the Plan. You must also have attained age 20 and completed 6
months of service.
The "eligibility computation period" is the 12 month period that begins with the
date you were hired. If you don't meet the service requirements during the first
year following your date of hire, the eligibility computation period becomes the
Plan Year. You may then meet the requirements during any Plan Year.
Entry Dates:
Participation in the Plan can begin only on an Entry Date. Your first Entry Date
is the first day of the Plan Year, January 1st, nearest to the date you meet the
Eligibility requirements. This means that your Entry Date can be before the
exact date you meet the Eligibility requirements.
Rehired employees:
If you had satisfied the Eligibility requirements before you terminated
employment, you will become a Participant immediately on the date you are
rehired, if your rehire date is on or after your first Entry Date, as defined
above. Otherwise, you will be eligible to participate on the next Entry Date. If
you had not yet satisfied the Eligibility requirements at the time you
terminated employment, you must meet the Eligibility requirements as if you were
a new employee.
3
<PAGE>
----------------------------------------
Article IV
EMPLOYEE CONTRIBUTIONS
----------------------------------------
Your 401(k) Salary Deferral Plan offers you special tax advantages and
incentives to participate. First, every dollar you put into the Plan reduces
your income currently subject to Federal Income Tax. Thus, your deposits into
the 401(k) Plan are often called "salary reductions." (However, you must still
pay Social Security Taxes on your gross wages.)
Although you will have to pay income tax when you withdraw money from the Plan,
you may be able to defer taxes on a withdrawal by depositing the funds into
another Plan or an Individual Retirement Account (IRA). Because you defer paying
taxes until you receive payments from the Plan, 401(k) contributions are
sometimes called "salary deferrals."
The following chart illustrates the advantage of making deposits into the 401(k)
Plan (saving on a tax-deferred basis) rather than saving on an after-tax basis
such as a bank passbook savings account or a money market fund.
<TABLE>
<CAPTION>
401(k) Plan Passbook
Tax-deferred After-tax
Savings Savings
<S> <C> <C>
Gross Wages $20,000 $20,000
401(k) Deposit 1,000 N/A
------- -------
Taxable Wages 19,000 20,000
Estimated Taxes (25%) 4,750 5,000
Passbook Deposit N/A 1,000
------- -------
Net Take-home Pay $14,250 $14,000
</TABLE>
In our example, net take-home pay (after paying taxes and after saving $1,000)
is $250 greater when the savings are deposited into the 401(k) Plan, rather than
an after-tax savings program like a money market or bank passbook account.
Saving $1,000 in the 401(k) Plan only "cost" our example person $750 in
take-home pay.
This is only a rough illustration of the advantages of tax-deferred savings.
Please discuss your situation with your tax advisor.
Tax free accumulation:
Another big advantage your Plan offers is tax-deferred accumulation of the
earnings on your investments. All the earnings on the money you contribute to
your account compounds tax free. You pay taxes on this money only when you
retire or take distributions for some other reason,
4
<PAGE>
such as death or becoming totally disabled. If you put your money into a savings
account you are required to pay income taxes on the interest each year. Thus, by
contributing to your 401(k) Savings Plan, you'll have more money available at
retirement.
Salary reduction agreement:
In order to enroll (or to refuse enrollment), your Employer will ask you to
complete a Salary Reduction Agreement. It is here that you tell your Employer
how much of your income you wish to defer to your Plan.
There are limits placed on the amount you can defer into this Plan. Your salary
deferrals cannot exceed a maximum dollar amount determined by the Federal
Government each year. For 1997, that amount is $9,500. Generally, if your total
deferrals from all cash or deferred arrangements for a calendar year exceed the
dollar amount set by the government, the excess must be included in your income
for the year. The IRS also requires that the combined contribution by you and
your Employer to your accounts not exceed the lesser of $30,000 or 25 % of your
pay. Your Employer may also place restrictions on the amount you may defer in
order to meet IRS requirements.
Your Employer will deduct the amount you've elected from your paycheck in
accordance with procedures established by your Employer.
Restrictions:
In order to provide tax-advantaged savings, the Plan must place restrictions on
withdrawals from the Plan. Article X describes the circumstances under which you
may withdraw 401(k) deposits from the Plan.
Election not to defer:
You may decide that you do not wish to make salary reduction contributions on
your first Entry Date. The Plan Administrator will explain the procedures for
delayed enrollment in the salary reduction portion of the Plan, if you decide to
enroll at a later date.
Excess deferrals:
If you participate in two or more deferred compensation plans (which include
401(k), Simplified Employee Pensions and 403(b) plans), your total deferrals to
all plans could exceed IRS limits for the year. To avoid paying additional
excise taxes if excess contributions have to be returned, you may want to
designate which plan is to return any excess contributions to you.
If you elect to have this Plan return any excess, you should notify the Plan
Administrator so that the excess can be returned to you, along with any
earnings, before April 15.
5
<PAGE>
----------------------------------------
Article V
EMPLOYER CONTRIBUTIONS
----------------------------------------
Your Employer may make contributions to the Plan, in addition to your salary
deferral 401(k) contributions. Your Employer may make matching contributions,
non-elective or discretionary contributions and required minimum contributions
under the Top-Heavy rules (see Article XII) or other legal requirements.
Matching Contributions:
To be eligible to receive an allocation of matching contributions, you must have
worked 1 hour during the Plan Year.
If you do not meet the hours requirement because you have retired, become
disabled, or died, you will still receive matching contributions.
The amount of the match depends on your 401(k) contributions. Your Employer will
provide a matching contribution of 100 cents for every dollar you invest in the
Plan.
Your employer will make matching contributions only on the first 7.5% of
compensation deposited as elective contributions. Amounts deferred over 7.5% are
not matched.
The matching contribution shall be allocated each pay period.
Non-Elective or Discretionary Contributions:
In order to receive an allocation of discretionary Employer contributions, you
must have worked 1,000 hours during the Plan Year, and be employed on the last
day of the Plan Year.
If you do not meet the hours requirement or are not employed on the last day of
the Plan Year because you have retired, become disabled, or died, you will still
receive an allocation of the discretionary Employer contribution.
You do not have to make 401(k) contributions in order to receive a discretionary
contribution.
The amount of the discretionary contribution is set by the Employer each year.
6
<PAGE>
Your share of the non-elective/discretionary contribution is based on the
relationship of your compensation to the total compensation for all
Participants. For example, if your compensation is $20,000 and if the total
compensation is $1,000,000, your share would be 2% of the total discretionary
contribution. In our example, if the discretionary contribution was $30,000,
your share would be:
$30,000 x ($20,000/$1,000,000) = $600 or
$30,000 x .02 (2%) = $600
Other required contributions:
In certain situations, your Employer may be required to make additional
contributions to the Plan. If the Plan is Top-Heavy (see Article XII) or if
highly paid participants contribute a higher percentage of pay to the Plan than
other participants, your Employer may have to take corrective action. This
action could result in either a reduction in the contributions for the highly
compensated participants or an additional Employer contribution, in the form of
Non-Elective or Qualified Non-Elective contributions.
7
<PAGE>
----------------------------------------
Article VI
VESTING
----------------------------------------
The term "vesting" refers to the percentage of your Employer contribution
account(s) (if any) other than your Qualified Non-Elective contributions
account, that you are entitled to receive in the event of your termination of
employment. You are also 100% vested in your Qualified Non-Elective account.
If you terminate employment before you meet the requirements for retirement (see
Article X), the distribution from the Employer matching and discretionary
accounts will be limited to the vested portion. Your vesting percentage grows
with your Years of Service. Article VII explains how Years of Service are
credited.
The same vesting schedule applies to the matching and discretionary Employer
contributions.
Vesting schedule for matching and discretionary Employer accounts:
Years of Service Percent Vested
Less than 1 0%
1 but less than 2 0%
2 but less than 3 0%
3 but less than 4 20%
4 but less than 5 40%
5 but less than 6 60%
6 but less than 7 80%
7 or more 100%
You will also become 100% vested at Normal Retirement, if you become disabled or
if you die. Refer to Article X for information on retirement, disability or
death.
In the event the Plan should become 'top-heavy', a faster vesting schedule will
apply. See Article XII for an explanation of the top-heavy rules.
Top-Heavy vesting schedule for matching and discretionary Employer accounts:
Years of Service Percent Vested
Less than 1 0%
1 but less than 2 0%
2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 but less than 6 80%
6 or more 100%
8
<PAGE>
----------------------------------------
Article VII
SERVICE RULES
----------------------------------------
Year of Service:
You will earn a Year of Service for vesting if you are credited with 1,000 Hours
of Service during a Plan Year. However, if you are credited with 1,000 hours
during your first year of employment, you'll earn a Year of Service. You cannot
earn more than one Year of Service credit during any Plan Year, though.
If you terminate employment and are later rehired by the Employer, your Years of
Service after reemployment will be added to the Years of Service you had
accumulated when you left.
Hours of Service:
You are credited with the actual number of hours you work and for hours for
which you are paid, but are not at work such as paid vacation or paid sick
leave.
Break in service rules:
When you fail to complete at least 501 hours during the Plan Year, you incur a
break in service. Thus, in any year in which you work less than 501 hours
(approximately 3 months), you will incur a break in service.
However, in certain circumstances, your Plan is required to credit you with 501
hours, even though you didn't actually work 501 hours. This is primarily if you
take time off to have, adopt or care for a child for a period immediately
following the birth or adoption. You will receive this credit only for the
purpose of determining whether you have incurred a break in service and not for
receiving additional credit for a contribution or for vesting.
9
<PAGE>
----------------------------------------
Article VIII
COMPENSATION
----------------------------------------
Throughout this Summary Plan Description, the words "compensation" and "pays"
are used to define contribution amounts. "Pay" or "Compensation" means the total
wages paid to you by your Employer for the Plan Year.
Compensation includes deferred compensation which is not includable in your
gross taxable income due to SEP Deferrals, Cafeteria Benefits, 401(k) deferrals,
Tax Deferred Annuities and Governmental Deferred Compensation Plans.
In no event shall compensation in excess of $160,000 (as adjusted for changes in
the Consumer Price Index: $160,000 for 1997) be taken into account for any
Participant in this Plan.
Your compensation for the first Plan Year in which you participate shall be your
compensation from the Employer for the full Plan Year.
10
<PAGE>
----------------------------------------
Article IX
PARTICIPANTS' ACCOUNTS
----------------------------------------
Under the 401(k) Savings Plan, the money you deposit and any Employer
contributions are placed into investment accounts. which are credited with gains
and losses at each Valuation Date. The Valuation Date for your 401(k) Plan
occurs on the Anniversary Date (see Article II).
Separate accounts are set up for each different type of money: 401(k) deposits,
matching, discretionary, rollover and Qualified Non-Elective contributions
because there are different Plan and IRS rules for each type of contribution.
Forfeitures:
Forfeitures of Employer discretionary contributions will supplement non-elective
contributions. Forfeitures of matching contributions will supplement matching
contributions. "Forfeitures" are amounts which could not be paid to terminated
participants because they were not 100% vested when they separated from service
with the Employer.
In order to share in the allocation of forfeitures, you must be eligible to
share in Employer contributions for the Plan Year.
If you are eligible to share in the forfeiture allocation, your portion will be
credited to your account as of the last day of the Plan Year in which the
terminated participant receives a distribution from the Plan.
And, your portion will be determined in proportion to your share of the Employer
contribution.
Rollover Accounts:
Your Plan allows employees who had retirement accounts with a previous Employer
to directly transfer or rollover the previous account balance to your Plan even
if you are not a Participant in this plan. This is a segregated "Rollover"
account and it is always 100% vested. If you are making a rollover instead of a
direct transfer, in order to avoid taxes on your "Rollover" money, you must
complete the rollover from your old plan to this Plan within 60 days after
receiving the money.
Investments:
Your Plan offers several investment options and you may instruct the Trustees
how you would like to invest the funds in your Rollover, 401(k), Matching,
Voluntary, Non-Elective and Qualified Non-Elective accounts.
If you choose not to select how your accounts are invested, the Trustee will
invest them for you. The Trustees are fiduciaries of the Plan, which means that
they have a responsibility to you to invest the Plan assets prudently.
11
<PAGE>
Contact your Plan Administrator for information concerning the investment
options which are currently available.
Crediting your accounts with gain or loss:
Each investment account is credited with investment gain or loss as of each
Valuation Date. Earnings or losses are allocated on the basis of the ratio your
account balance bears to the total account balances of all participants in the
same investment. You are then credited with that percentage of earnings or
losses.
When you receive a distribution from the Plan, the Plan Administrator must first
establish the value of your account. The date of this special valuation is the
Distribution Determination Date. If the Distribution Determination Date is any
date other than a Valuation Date, the value of your account will be adjusted for
the actual gain or loss from the prior Valuation Date to the Distribution
Determination Date.
12
<PAGE>
----------------------------------------
Article X
DISTRIBUTIONS AND BENEFITS UNDER YOUR PLAN
----------------------------------------
In-Service Distributions:
An In-Service Distribution is one that you receive while you are actively
employed. The primary purpose of the Plan is to provide benefits to you upon
your retirement, but you may request an In-Service Distribution of all or a
portion of your accounts, provided that you are fully vested and have reached
age 59 1/2, and
In addition, you may request an In-Service Distribution of the full value of all
of your accounts, on or after the date you reach Normal Retirement Age (defined
below).
Also, you may request an In-Service Distribution in the event of financial
hardship. Financial hardship might result from your own, your spouse's or your
dependents' medical expenses, expenses in purchasing your primary residence or
in preventing eviction or foreclosure, or tuition for the next 12 months of
post-secondary education for you, your spouse or dependents. In addition, a
financial hardship only occurs when you have no other resources available to
you. For example, you may need to prove that you have been turned down for loans
or that you have sold other assets before you can receive a Hardship
Distribution.
The amount of your Hardship Distribution cannot exceed the amount needed to meet
the immediate financial hardship. In addition, the distribution will be limited
to the amount of your 401(k) contributions (no investment income).
If you receive a Hardship Distribution, the Plan must impose restrictions on the
amount of your 401(k) salary deferrals in the future. First, you cannot make any
401(k) contributions for the 12-month period following the date of your Hardship
Distribution. Secondly, the maximum amount of 401(k) contributions that you can
make for the calendar year that begins after the date of distribution is reduced
by the amount of your elective deferrals in the year you took the hardship
withdrawal.
For example, let's say that you took a hardship withdrawal on July 1, 1998, and
during 1998, you deposited $5,000 in elective deferrals. You can't make any
401(k) contributions until July 1, 1999. And, the maximum amount that you can
contribute for 1999 would be the legal limit minus $5,000. If the legal maximum
was $9,500 for 1999, you would be limited to $4,500.
Plan benefits are also paid when you retire, or become permanently disabled.
Benefit payments may also be made to your beneficiary (ies) upon your death.
Each of these events is discussed below.
13
<PAGE>
Normal Retirement Benefits:
The Normal Retirement Age for the Plan is age 65.
Your Normal Retirement Date is the date you reach Normal Retirement Age.
At your Normal Retirement Date, you will be entitled to 100% of your account
balance. Payment of your benefits will begin as soon as practicable following
your retirement. (See Article XI, Benefit Payment Options.)
Early Retirement Benefits:
You are eligible for Early Retirement Benefits on the day you are at least 55
years old and have completed at least 10 Years of Service. If you retire on or
after your Early Retirement Date, payment of your Early Retirement benefits will
commence as soon as practicable following your retirement.
Late Retirement Benefits:
If you decide to work past your Normal Retirement Date, you can defer payment of
your benefits until your Retirement Date. Payment of your Retirement benefits
will commence as soon as practicable following your late retirement date.
Death Benefits:
Should you die before termination of your employment by retirement or
disability, your spouse or beneficiary will be entitled to 100% of your account
balance.
If you are married at the time of your death, your spouse will be the
beneficiary of your death benefits, unless you otherwise elect in writing on a
form to be furnished to you by the Plan Administrator. IF YOU WISH TO DESIGNATE
A BENEFICIARY OTHER THAN YOUR SPOUSE AS YOUR BENEFICIARY, YOUR SPOUSE MUST
CONSENT TO WAIVE HIS/HER RIGHT TO RECEIVE DEATH BENEFITS UNDER THE PLAN. YOUR
SPOUSE'S CONSENT MUST BE IN WRITING AND WITNESSED BY A NOTARY OR A PLAN
REPRESENTATIVE.
If your spouse has consented to a valid waiver of any rights to the death
benefit; or your spouse cannot be located; or you are single at the time of your
death, then your death benefit will be paid to any beneficiary you may choose.
The Plan Administrator will supply you with a beneficiary designation form.
Since your spouse has certain rights under your Plan, you should immediately
inform the Plan Administrator of any changes in your marital status.
Disability Benefits:
Should you become permanently disabled while a Participant under this Plan, you
will receive 100% of your account balance. "Disability" means a medically
determinable physical or mental
14
<PAGE>
impairment which may be expected to result in death or to last at least a year
and which renders you incapable of performing your duties with your Employer. A
determination of disability will be made by the Plan Administrator in a uniform,
nondiscriminatory manner on the basis of medical evidence.
If it is determined you are disabled, your payments will begin as soon as
practicable following the date you were determined to be disabled.
Benefits Upon Termination:
If your employment is terminated for any reason other than those set out above,
you will only be entitled to that portion of your Employer accounts in which you
are vested.
"Vesting" refers to the percentage of your account balance you are entitled to
at any point in time. For each year you remain a Participant in the Plan, you
become vested with a higher percentage of your Employer account balance. (See
Vesting, Article VI.)
If your benefit is over $3,500, you may at your option, request the Plan
Administrator to distribute your benefit to you before your retirement date.
However, the value of your account will not be determined earlier than as soon
as practical following your termination if you are not fully vested, or as soon
as practical if you are 100% vested. You will receive payment of your benefits
as soon as practical after that date.
If your benefit is $3,500 or less, the Plan Administrator may distribute your
benefit early. No consent is needed for distributions of $3,500 or less.
Distributions Due To A Domestic Relations Order:
In general, contributions made by you or your Employer for your retirement are
not subject to alienation. This means they cannot be sold, used as collateral
for a loan, given away or otherwise transferred. They are not subject to the
claims of your creditors. However, they may be subject to claims under a
Qualified Domestic Relations Order (QDRO).
The Administrator may be required by law to recognize obligations you incur as a
result of court ordered child support or alimony payments. The Administrator
must honor a "Qualified Domestic Relations Order" which is defined as a decree
or order issued by a court that obligates you to pay child support or alimony,
or otherwise allocates a portion of your assets in the Plan to your spouse,
child or other dependent. If a QDRO is received by the Administrator, all or
portions of your benefits may be used to satisfy the obligation. It is the Plan
Administrator's responsibility to determine the validity of a QDRO.
Taxation of Distributions:
The benefits you receive from the Plan will be subject to ordinary income tax in
the year in which you receive the payment, unless you defer taxation by a
"rollover" of your distribution into
15
<PAGE>
another qualified plan or an IRA. Also, in certain situations, your tax may be
reduced by special tax treatment such as "5-year forward averaging."
VERY IMPORTANT NOTE: Under most circumstances, if you receive a distribution
from this Plan on or after January 1, 1993, twenty percent (20%) of your
distribution will be withheld for federal income tax purposes, unless you
instruct the trustees of this Plan to DIRECTLY transfer your distribution into
another qualified plan or an IRA. You must give these instructions to the
trustees no more than 90 days before the date you receive the payment. Also,
unless you sign a waiver form, the trustees must wait at least 30 days after
receiving your instructions before making the payment, to allow you time to
change your decision.
In addition to ordinary income tax, you may be subject to a 10% tax penalty if
you receive a "premature" distribution. If you receive a distribution upon
terminating employment before age 55 and you don't receive the payment as a life
annuity, you will be subject to the 10% penalty, unless you "rollover" your
payment. If you take a hardship withdrawal before age 59-1/2, the withdrawal
will usually be subject to the 10% penalty. But, there is no penalty for
payments due to your death or disability.
As the rules concerning "rollovers" and the taxation of benefits are complex,
please consult your tax advisor before making a withdrawal or requesting a
distribution from the Plan. As required by law the Plan Administrator will
provide you with a brief explanation of the rules concerning "rollovers".
16
<PAGE>
----------------------------------------
Article XI
BENEFIT PAYMENT OPTIONS
----------------------------------------
There is one form of payment under your Plan. Your distribution will be in the
form of a lump-sum distribution of your total account balances, or you may
select an alternate form of payment, if permitted under your Plan, at the time
of your distribution.
The Plan Administrator may delay payment to you for a reasonable time for
administrative convenience. However, unless you choose to defer receipt of your
distribution, the Plan must begin your payments within 60 days after the close
of the Plan Year following the latest of:
(a) the date on which you reached your Normal Retirement Age;
(b) the 10th anniversary of the year in which you became a Participant in
the Plan; or
(c) the date you terminated employment with the Employer.
In any event, the law requires that your distributions begin no later than April
1 of the year following the date you reach age 70-1/2 (the date six months after
your 70th birthday.)
17
<PAGE>
----------------------------------------
Article XII
TOP-HEAVY RULES
----------------------------------------
A Plan becomes Top-Heavy when the total of the Key Employees' account balances
make up more than 60 % of the total of all account balances in the Plan. Key
Employees are certain highly compensated officers or owners/shareholders.
If your Plan is Top-Heavy. Plan participants who are not "key" must receive a
minimum contribution. This minimum contribution is the smaller of the percentage
of pay contributed by the Employer to Key Employees, or 3 % of your
compensation. If the Employer contribution allocated to your account for the
Top-Heavy year is equal to or more than this minimum contribution, no additional
Employer contribution would be needed to meet the Top-Heavy rules.
Also, the vesting schedules which apply to the Discretionary Employer and
Matching contributions change if your Plan becomes Top-Heavy. Vesting is
discussed in Article VI.
18
<PAGE>
----------------------------------------
Article XIII
PARTICIPANT LOAN PROGRAM
----------------------------------------
Pursuant to the terms of Ponchatoula Homestead Association Employees 401(k)
Profit Sharing Plan, the Trustee has adopted a participant loan program as part
of such Plan and Trust. The program is intended to comply with Labor Regulation
2550.408b-1. Loans will be made pursuant to the terms of the Plan and Trust and
the following provisions of the Participant Loan Program.
A. Administration of Program
The following person ("the Loan Administrator") is responsible for the
administration of the loan program. All loan requests and other inquires
should be delivered to:
Ponchatoula Homestead Savings, FA
195 North Sixth St.
Ponchatoula, LA 70454
(504) 386-3379
B. Application Procedure
1. Obtain and complete a loan application on forms provided by the
Loan Administrator.
2. Submit the completed loan application to the Loan Administrator
at least 10 days before the date the loan is to be made.
3. Loan applications will be reviewed by the Loan Administrator for
completeness. Incomplete applications will be returned to the
applicant for completion.
4. Approved loans will be processed on the first day of each month.
C. Basis for Approvals
Loans are available to all participants and, in the event of a
participant's death, his or her beneficiaries without regard to any
individual's race, color, religion, sex, age or national origin. Each
application will be reviewed on a nondiscriminatory basis but will be
assessed on the applicant's credit worthiness, financial need, and the
purpose and terms of the loan. An individual may be denied future loans if
he or she defaulted on any previous loan.
D. Limitations
1. Limitations on Types of Loans
Subject to the limitations on the amount of any loan, loans will
be approved if the loan proceeds are to be used:
- For the purpose of acquiring (excluding mortgage payments) a
principal residence for the participant.
- For the purpose of paying deductible medical expenses
(described in
19
<PAGE>
Section 213(d) of the Internal Revenue Code) incurred by the
participant, his or her spouse or dependents.
- For the purpose of payment of tuition for the next semester or
quarter of post-secondary education for the participant, his or
her spouse, children or dependents.
- To prevent the eviction of the participant from his principal
residence or foreclosure on the mortgage of the participant's
principal residence.
- For proven financial hardship.
2. Limitations on Amounts of Loans
- The minimum amount of any loan is $1,000.
- The maximum amount of any loan is the lesser of $50,000 or 50%
of the vested interest of the participant in the Plan. The
$50,000 maximum amount will be reduced by the participant's
highest outstanding loan balance in the previous twelve months,
even if amounts have been repaid.
- The maximum amount of any loan is $50,000.
- The balance of outstanding loans to a single participant may
not exceed $50,000.
- A participant may have no more than 1 loan outstanding at any
one time.
3. Prior to funding a Participant Loan, the amount necessary to fund
such loan will be transferred from the source accounts to a
segregated account from which the Participant Loan shall be made.
During the term of the Participant Loan, repayment of principal
and interest shall be made to this segregated account. This
segregated account shall not share in any other gains or losses
credited to the Plan.
E. Interest
The interest rate will be determined from-time to time by the Trustee with
the intention of providing the Plan with a return commensurate with the
interest rates charged by persons in the business of lending money for
loans which would be made under similar circumstances.
Until otherwise determined by the Trustee, the interest rate will be the
prime rate of interest charged by a local financial institution as of the
date of the loan, plus 1 percent.
The rate of interest will be constant throughout the term of the loan.
F. Collateral or Other Security
All loans must be adequately secured. No more than 50 percent of the
present value of a participant's vested interest in the Plan may be
considered by the Plan as security for the outstanding balance of all Plan
loans made to the participant.
The Trustee will accept other collateral as security for the loan, such as
a lien on real estate, marketable securities, savings accounts or other
assets, provided that the Trustee determines that in the event of default,
the collateral to be sold, foreclosed upon or otherwise disposed of has
such value and liquidity that it may reasonably be anticipated that loss of
principal or interest will not result from the loan.
20
<PAGE>
G. Repayment Terms
All loans are required to be repaid within 5 years of the loan unless the
purpose of the loan is to acquire a dwelling unit which is to be used
within a reasonable time as the principal residence of the participant.
Loans are to be repaid on the basis of substantially level amortization
over the term of the loan with payments made each pay period.
H. Default
A loan is in default when a scheduled installment payment is 60 days late.
If payment has not been made within 30 days of the installment due date,
the Loan Administrator will notify the participant in writing that payment
is due within 15 days of the date of the notification. If payment is not
received within such stipulated time period, the following will take place:
1. The delinquent installment will be considered to be in default as
of the date the last payment was due.
2. At the discretion of the Trustee exercised in a uniform and
nondiscriminatory manner, the loan will be renegotiated and
payments will be made through payroll withholding. If the loan is
not renegotiated in a manner acceptable to the Trustee, if
permitted in the Plan, the loan will be deemed an in-service
withdrawal. Such withdrawal will be subject to personal income
and possible penalty taxes. Form 1099R will be timely issued to
the participant and the IRS showing such withdrawal.
3. If the participant fails to make provisions for repayment
reasonably acceptable to the Trustee, at the election of the
Trustee, exercised in a uniform and nondiscriminatory manner, the
remaining principal and interest on the loan shall be declared
due and payable as of the date the last payment was due.
4. The amount of any uncured default will be considered as having
been received in a taxable event, subject to personal income and
penalty taxes. Such tax consequences do not affect the
participant's obligation to repay the loan. Form 1099R will be
timely issued to the Participant and the IRS; however, the loan
will not be charged against the Participant's vested account
balance until he or she terminates service, retires, dies,
becomes disabled, or reaches the earliest date distribution is
permitted under the Plan.
5. To the extent necessary, any other collateral pledged as
additional security will be foreclosed upon.
21
<PAGE>
----------------------------------------
Article XIV
MISCELLANEOUS
----------------------------------------
Protection of benefits:
Except for the requirements of a Qualified Domestic Relations Order, your Plan
benefits are not subject to claims, indebtedness, execution, garnishment or
other similar legal or equitable process. Also, you cannot voluntarily (or
involuntarily) assign your benefits under this Plan. See Distributions due to a
Domestic Relations Order in Article X.
Amendment and Termination:
The Employer has reserved the right to amend or terminate your Plan. However, no
amendment can take away any benefits you have already earned. If your Plan is
terminated, you will be entitled to the full amount in your account as of the
date of termination, regardless of the percent you are vested at the time of
termination.
Pension Benefit Guaranty Corporation:
The Pension Benefit Guaranty Corporation (PBGC) provides plan termination
insurance for defined benefit pension plans. In your 401(k) Plan (a defined
contribution plan), all of the contributions and investment earnings are
allocated to Participants' accounts. PBGC insurance is not needed and does not
apply.
Claims:
When you request a distribution of all or any part of your account, you will
contact the Plan Administrator who will provide you with the proper forms to
make your claim for benefits.
Your claim for benefits will be given a full and fair review. However, if your
claim is denied, in whole or in part, the Plan Administrator will notify you of
the denial within 90 days of date your claim for benefits was received, unless
special circumstances delay the notification. If a delay occurs, you will be
given a written notice of the reason for the delay and a date by which a final
decision will be given (not more than 180 days after the receipt of your claim.)
Notification of a denial of claims will include:
(a) the specific reason(s) for the denial,
(b) reference(s) to the Plan provision(s) on which the denial is based,
22
<PAGE>
(c) a description of any additional material necessary to correct your
claim and an explanation of why the material is necessary, and
(d) an explanation of the steps to follow to appeal the denial, including
notification that you (or your beneficiary) must file your appeal
within 60 days of the date you receive the denial notice.
If you or your beneficiary do not file an appeal within the 60-day period, the
denial will stand. If you do file an appeal within the 60 days, your Employer
will review the facts and hold hearings, if necessary, in order to reach a final
decision. Your Employer's decision will be made within 60 days of receipt of the
notice of your appeal, unless an extension is needed due to special
circumstances. In any event, your Employer will make a decision within 120 days
of the receipt of your appeal.
Article XV, STATEMENT OF ERISA RIGHTS, describes the protection you have under
ERISA and the steps you can take to enforce these rights.
23
<PAGE>
----------------------------------------
Article XV
STATEMENT OF ERISA RIGHTS
----------------------------------------
As a participant in Ponchatoula Homestead Association Employees 401(k) Profit
Sharing Plan you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all
Plan participants shall be entitled to:
(a) examine, without charge, at the Plan Administrator's office copies of
all documents filed by the Plan with the U.S. Department of Labor,
such as detailed annual reports and Plan descriptions,
(b) obtain copies of all Plan documents and other Plan information upon
written request to the Plan Administrator (the Administrator may make
a reasonable charge for the copies),
(c) receive a summary of the Plan's annual financial report. The Plan
Administrator is required by law to furnish each participant with a
copy of this summary annual report.
(d) obtain a statement telling you whether you have a right to receive a
retirement benefit at Normal Retirement Age and if so, what your
benefits would be at Normal Retirement Age if you stop working under
the Plan now. If you do not have a right to a benefit, the statement
will tell you how many more years you have to work to get a right to a
benefit. This statement must be requested in writing and is not
required to be given more than once a year. The Plan must provide the
statement free of charge.
In addition to creating rights for Plan participants, ERISA imposes duties upon
the people who are responsible for the operation of the employee benefit plan.
The people who operate your Plan, called "fiduciaries" of the Plan, have a duty
to do so prudently and in the interest of you and other Plan participants and
beneficiaries. No one, including your Employer may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a retirement
benefit or exercising your rights under ERISA.
If your claim for a retirement benefit is denied in whole or in part you must
receive a written explanation of the reason for the denial. You have the right
to have the Plan review and reconsider your claim.
Under ERISA, there are steps you can take to enforce the above rights. For
instance, if you request materials from the Plan and do not receive them within
30 days, you may file suit in a federal court. In such a case, the court may
require the Plan Administrator to provide the materials and pay you up to $100 a
day until you receive the materials, unless the materials were not sent because
of reasons beyond the control of the administrator.
24
<PAGE>
If you have a claim for benefits which is denied or ignored, in whole or in
part, you may file suit in a state or federal court.
If it should happen that Plan fiduciaries misuse the Plan's money, or if you are
discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor, or you may file suit in a federal court. The court
will decide who should pay court costs and legal fees. If you are successful,
the court may order the person you have sued to pay these costs and fees. If you
lose, the court may order you to pay these costs and fees, for example, if it
finds your claim is frivolous.
If you have any questions about your rights under ERISA, you should contact the
nearest Area Office of the U.S. Management Services Administration, Department
of Labor.
25
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 24. Indemnification of Directors and Officers.
In accordance with the Business Corporation Law of the State of Louisiana,
Article 8 of the Corporation's Articles of Incorporation provides as follows:
Article 8. Indemnification, etc. of Officers, Directors, Employees and
Agents.
A. Personal Liability of Directors and Officers. A director or officer
of the Corporation shall not be personally liable for monetary damages for any
action taken, or any failure to take any action, as a director or officer except
to the extent that by law a director's or officer's liability for monetary
damages may not be limited.
B. Indemnification. The Corporation shall indemnify any person who was
or is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, including actions by or in the right of
the Corporation, whether civil, criminal, administrative or investigative, by
reason of the fact that such person is or was a
II-1
<PAGE>
director, officer, employee or agent of the Corporation, or is or was serving
at the request of the Corporation as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by such
person in connection with such action, suit or proceeding to the full extent
permissible under Louisiana law.
C. Advancement of Expenses. Reasonable expenses incurred by an officer,
director, employee or agent of the Corporation in defending an action, suit or
proceeding described in Section B of this Article 8 may be paid by the
Corporation in advance of the final disposition of such action, suit or
proceeding if authorized by the board of directors (without regard to whether
participating members thereof are parties to such action, suit or proceeding),
upon receipt of an undertaking by or on behalf of such person to repay such
amount if it shall ultimately be determined that the person is not entitled to
be indemnified by the Corporation.
D. Other Rights. The indemnification and advancement of expenses
provided by or pursuant to this Article 8 shall not be deemed exclusive of any
other rights to which those seeking indemnification or advancement of expenses
may be entitled under any bylaw, insurance or other agreement, vote of
stockholders or directors (regardless of whether directors authorizing such
indemnification are beneficiaries thereof) or otherwise, both as to actions in
their official capacity and as to actions in another capacity while holding an
office, and shall continue as to a person who has ceased to be a director,
officer, employee or agent and shall inure to the benefit of the heirs,
executors and administrators of such person.
E. Insurance. The Corporation shall have the power to purchase and
maintain insurance or other similar arrangement on behalf of any person who is
or was a director, officer, employee or agent of the Corporation, or is or was
serving at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture or other enterprise,
against any liability asserted against or incurred by him in any such capacity,
or arising out of his status as such, whether or not the Corporation would have
the power to indemnify him against such liability under the provisions of this
Article 8.
F. Security Fund; Indemnity Agreements. By action of the Board of
Directors (notwithstanding their interest in the transaction), the Corporation
may create and fund a trust fund or other fund or form of self-insurance
arrangement of any nature, and may enter into agreements with its officers,
directors, employees and agents for the purpose of securing or insuring in any
manner its obligation to indemnify or advance expenses provided for in this
Article 8.
G. Modification. The duties of the Corporation to indemnify and to
advance expenses to any person as provided in this Article 8 shall be in the
nature of a contract between the Corporation and each such person, and no
amendment or repeal of any provision of this Article 8, and no amendment or
termination of any trust or other fund or form of self-insurance arrangement
created pursuant to Section F of this Article 8, shall
II-2
<PAGE>
alter to the detriment of such person the right of such person to the advance
of expenses or indemnification related to a claim based on an act or failure
to act which took place prior to such amendment, repeal or termination.
H. Proceedings Initiated by Indemnified Persons. Notwithstanding any
other provision of this Article 8, the Corporation shall not indemnify a
director, officer, employee or agent for any liability incurred in an action,
suit or proceeding initiated (which shall not be deemed to include
counter-claims or affirmative defenses) or participated in as an intervenor or
amicus curiae by the person seeking indemnification unless such initiation of or
participation in the action, suit or proceeding is authorized, either before or
after its commencement, by the affirmative vote of a majority of the directors
in office.
Item 25. Other Expenses of Issuance and Distribution.
<TABLE>
<CAPTION>
<S> <C>
SEC filing fees.......................................... $ 4,461
OTS filing fees.......................................... 8,400
Nasdaq filing fees....................................... 6,512
Printing, postage and mailing............................ 70,000
Legal fees............................................... 95,000
Underwriter's legal fees and out-of-pocket expenses...... 37,500
Blue Sky filing fees and expenses........................ 18,000
Accounting fees.......................................... 35,000
Appraiser's fees and expenses, including business plan... 35,000
Conversion agent fees and expenses....................... 7,500
Transfer agent and stock certificates.................... 7,500
Miscellaneous............................................ 25,127
--------
Total(1)............................................ $350,000
--------
--------
</TABLE>
- -----------------
(1) Does not include the marketing fees to be paid to Trident Securities, which
will be based on the amount of common stock sold. The marketing fees are
estimated to range from $71,179 to $97,571 at the minimum and maximum of the
Estimated Valuation Range.
Item 26. Recent Sales of Unregistered Securities
The only securities sold by the Registrant to date consist of 100 shares
of common stock issued on March 25, 1998 to its sole incorporator,
Poncholtoula Homestead Savings, F.A., for $10.00 per share, which shares will
be cancelled upon consummation of the conversion. Because the shares were
sold to only one entity and were sold only to facilitate the incorporation of
the Registrant, the sale was exempt from registration under the Securities
Act of 1933 pursuant to Section 4(2) thereof.
Item 27. Exhibits
The exhibits and financial statement schedules filed as a part of this
Registration Statement are as follows:
(a) List of Exhibits (filed herewith unless otherwise noted)
<TABLE>
<CAPTION>
<S> <C>
1.1* Engagement Letter dated February 25, 1998 with Trident Securities, Inc.
1.2** Form of Agency Agreement with Trident Securities, Inc.
2.1* Plan of Conversion and Agreement and Plan of Reorganization
3.1* Articles of Incorporation of Homestead Bancorp, Inc.
3.2* Bylaws of Homestead Bancorp, Inc.
4.1* Form of Stock Certificate of Homestead Bancorp, Inc.
5.0* Opinion of Elias, Matz, Tiernan & Herrick L.L.P. regarding legality of
securities
8.1* Opinion of Elias, Matz, Tiernan & Herrick L.L.P. regarding federal income
tax consequences
8.2* Opinion of Hannis T. Bourgeois, L.L.P. regarding Louisiana income tax
consequences
8.3* Letter of RP Financial, Inc. regarding subscription rights
10.1* 1996 Stock Incentive Plan
10.2* 1996 Directors' Stock Option Plan
10.3* 1996 Management Recognition Plan - Directors
10.4* 1996 Management Recognition Plan - Officers
10.5 Form of Employment Agreement between Homestead Bancorp, Inc.,
Ponchatoula Homestead Savings, F.A. and Lawrence C. Caldwell, Jr.
10.6 Form of Employment Agreement between Homestead Bancorp, Inc.,
Ponchatoula Homestead Savings, F.A. and Barbara B. Theriot
23.1* Consent of Hannis T. Bourgeois, L.L.P.
23.2* Consent of RP Financial, Inc.
23.3* Consent of Elias, Matz, Tiernan & Herrick L.L.P. (included in
Exhibit 5.0)
24.1* Power of Attorney (included in the Signature Page to the original
filing of this Registration
Statement)
27.0 Financial Data Schedule
99.1* Proxy Statement and form of proxy for solicitation of members of
Ponchatoula Homestead Savings, F.A.
99.2* Proxy Statement and form of proxy for solicitation of stockholders of
Homestead Mutual Holding Company
</TABLE>
II-3
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
99.3 Appraisal Report of RP Financial, Inc.
99.4** Stock Order Form
99.5** Transmittal Letters
99.6** Question and Answer Brochure
</TABLE>
* Previously filed
** To be filed by amendment
(b) Financial Statement Schedules
All schedules have been omitted as not applicable or not required under the
rules of Regulation S-X.
Item 28. Undertakings.
The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
(i) To include any Prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) To reflect in the Prospectus any facts or events arising after
the effective date of the Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
Registration Statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar value of the
securities offered would not exceed that which was registered) and any
deviation from the low or high and the estimated maximum offering range may
be reflected in the form of Prospectus filed with the Commission pursuant
to Rule 424 (b) if, in the aggregate, the changes in volume and price
represent no more than 20 percent change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the
effective Registration Statement;
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the Registration Statement or any
material change to such information in the Registration Statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new Registration Statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of the
Offering.
II-4
<PAGE>
The undersigned Registrant hereby undertakes to furnish stock certificates
to or in accordance with the instructions of the respective purchasers of the
Common Stock, so as to make delivery to each purchaser promptly following the
closing under the Plan of Conversion.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
II-5
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form SB-2 and authorized this
Pre-Effective Amendment No. 1 to this Registration Statement to be signed on
its behalf by the undersigned, in the city of Ponchatoula, state of
Louisiana, on April 15, 1998.
HOMESTEAD MUTUAL HOLDING COMPANY
By: /s/Lawrence C. Caldwell, Jr.
-------------------------------------
Lawrence C. Caldwell, Jr.
President and Chief Executive Officer
In accordance with the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
Name Title Date
- ---------------------------- ----------------------- -------------------
<S> <C> <C>
/s/Lawrence C. Caldwell, Jr. President and Chief April 15, 1998
- ---------------------------- Executive Officer
Lawrence C. Caldwell, Jr.
/s/Milton J. Schanzbach Chairman of the Board April 15, 1998
- ----------------------------
Milton J. Schanzbach
/s/Barbara B. Theriot Director, Secretary and April 15, 1998
- ---------------------------- Treasurer (principal
Barbara B. Theriot financial and accounting
officer)
/s/John C. Bohning Director April 15, 1998
- ----------------------------
John C. Bohning
</TABLE>
II-6
<PAGE>
<TABLE>
<CAPTION>
Name Title Date
- ---------------------------- ----------------------- -------------------
<S> <C> <C>
/s/Robert H. Gabriel Director April 15, 1998
- ----------------------------
Robert H. Gabriel
/s/Dennis E. James Director April 15, 1998
- ----------------------------
Dennis E. James
/s/Allen B. Pierson, Jr. Director April 15, 1998
- ----------------------------
Allen B. Pierson, Jr.
</TABLE>
II-7
<PAGE>
EXHIBIT INDEX
1.1* Engagement Letter dated February 25, 1998 with Trident Securities,
Inc.
1.2** Form of Agency Agreement with Trident Securities, Inc.
2.1* Plan of Conversion and Agreement and Plan of Reorganization
3.1* Articles of Incorporation of Homestead Bancorp, Inc.
3.2* Bylaws of Homestead Bancorp, Inc.
4.1* Form of Stock Certificate of Homestead Bancorp, Inc.
5.0* Opinion of Elias, Matz, Tiernan & Herrick L.L.P. regarding legality
of securities
8.1* Opinion of Elias, Matz, Tiernan & Herrick L.L.P. regarding federal
income tax consequences
8.2* Opinion of Hannis T. Bourgeois, L.L.P. regarding Louisiana income tax
consequences
8.3* Letter of RP Financial, Inc. regarding subscription rights
10.1* 1996 Stock Incentive Plan
10.2* 1996 Directors' Stock Option Plan
10.3* 1996 Management Recognition Plan - Directors
10.4* 1996 Management Recognition Plan - Officers
10.5 Form of Employment Agreement between Homestead Bancorp, Inc. and
Ponchatoula Homestead Savings, F.A. and Lawrence C. Caldwell, Jr.
10.6 Form of Employment Agreement between Homestead Bancorp, Inc. and
Ponchatoula Homestead Savings, F.A. and Barbara B. Theriot
23.1* Consent of Hannis T. Bourgeois, L.L.P.
23.2* Consent of RP Financial, Inc.
23.3* Consent of Elias, Matz, Tiernan & Herrick L.L.P. (included in Exhibit
5.0)
24.1* Power of Attorney (included in the Signature Page to this
Registration Statement)
27.0 Financial Data Schedule
99.1* Proxy Statement and form of proxy for solicitation of stockholders of
Ponchatoula Homestead Savings, F.A.
99.2* Proxy Statement and form of proxy for solicitation of stockholders of
Homestead Mutual Holding Company
99.3 Appraisal Report of RP Financial, Inc.
99.4** Stock Order Form
99.5** Transmittal Letters
99.6** Question and Answer Brochure
* Previously filed
** To be filed by amendment
<PAGE>
EXHIBIT 10.5
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT, dated this ____ day of ______ 1998, between Homestead
Bancorp, Inc., a Louisiana corporation (the "Corporation"), Ponchatoula
Homestead Savings, F.A., a federally-chartered savings and loan association and
a wholly owned subsidiary of the Corporation (the "Association"), and Lawrence
C. Caldwell, Jr. (the "Executive").
WITNESSETH
WHEREAS, the Executive is presently an officer of the Corporation and the
Association (together the "Employers");
WHEREAS, the Employers desire to be ensured of the Executive's continued
active participation in the business of the Employers; and
WHEREAS, in order to induce the Executive to remain in the employ of the
Employers and in consideration of the Executive's agreeing to remain in the
employ of the Employers, the parties desire to specify the severance benefits
which shall be due the Executive in the event that his employment with the
Employers is terminated under specified circumstances;
NOW THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereby agree as follows:
1. Definitions. The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:
(a) Average Annual Compensation. The Executive's "Average Annual
Compensation" for purposes of this Agreement shall be deemed to mean the average
level of compensation paid to the Executive by the Employers or any subsidiary
thereof during the most recent five taxable years preceding the Date of
Termination (or such shorter period as the Executive was employed), including
Base Salary and bonuses under any employee benefit plans of the Employers but
excluding any compensation resulting from the exercise of stock options or the
vesting of restricted stock awards.
(b) Base Salary. "Base Salary" shall have the meaning set forth in
Section 3(a) hereof.
(c) Cause. Termination of the Executive's employment for "Cause" shall
mean termination because of personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule or
regulation (other than traffic violations or similar offenses) or final
cease-and-desist
<PAGE>
order or material breach of any provision of this Agreement. For purposes of
this paragraph, no act or failure to act on the Executive's part shall be
considered "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the Executive's action or omission
was in the best interest of the Employers.
(d) Change in Control of the Corporation. "Change in Control of the
Corporation" shall mean a change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act"), or any successor thereto, whether or not the Corporation is registered
under Exchange Act; provided that, without limitation, such a change in control
shall be deemed to have occurred if (i) any "person" (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation's then outstanding securities; or (ii)
during any period of three consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Corporation cease for
any reason to constitute at least a majority thereof unless the election, or the
nomination for election by stockholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.
(e) Code. "Code" shall mean the Internal Revenue Code of 1986, as
amended.
(f) Date of Termination. "Date of Termination" shall mean the date
specified in the Notice of Termination.
(g) Disability. Termination by the Employers of the Executive's
employment based on "Disability" shall mean termination because of any physical
or mental impairment which qualifies the Executive for disability benefits under
the applicable long-term disability plan maintained by the Employers or any
subsidiary or, if no such plan applies, which would qualify the Executive for
disability benefits under the Federal Social Security System.
(h) Good Reason. Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive following a
Change in Control of the Corporation based on:
(i) Without the Executive's express written consent, the failure
to elect or to re-elect or to appoint or to re-appoint the
Executive to the offices of President and Chief Executive
Officer of the Employers or a material adverse change made
by the Employers in the Executive's functions, duties or
responsibilities as President and Chief Executive Officer of
the Employers;
(ii) Without the Executive's express written consent, a material
reduction by the Employers in the Executive's Base Salary as
the same may be
2
<PAGE>
increased from time to time or, except to the extent
permitted by Section 3(b) hereof, a material reduction in
the package of fringe benefits provided to the Executive,
taken as a whole;
(iii) Without the Executive's express written consent, the
Employers require the Executive to work in an office which
is more than 30 miles from the location of the Employers'
current principal executive office, except for required
travel on business of the Employers to an extent
substantially consistent with the Executive's present
business travel obligations;
(iv) Any purported termination of the Executive's employment for
Cause, Disability or Retirement which is not effected
pursuant to a Notice of Termination satisfying the
requirements of paragraph (j) below; or
(v) The failure by the Employers to obtain the assumption of and
agreement to perform this Agreement by any successor as
contemplated in Section 9 hereof.
(i) IRS. IRS shall mean the Internal Revenue Service.
(j) Notice of Termination. Any purported termination of the
Executive's employment by the Employers for any reason, including without
limitation for Cause, Disability or Retirement, or by the Executive for any
reason, including without limitation for Good Reason, shall be communicated by
written "Notice of Termination" to the other party hereto. For purposes of this
Agreement, a "Notice of Termination" shall mean a dated notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the provision so
indicated, (iii) specifies a Date of Termination, which shall be not less than
thirty (30) nor more than ninety (90) days after such Notice of Termination is
given, except in the case of the Employers' termination of the Executive's
employment for Cause; and (iv) is given in the manner specified in Section 10
hereof.
(k) Retirement. "Retirement" shall mean voluntary termination by the
Executive in accordance with the Employers' retirement policies, including early
retirement, generally applicable to the Employers' salaried employees.
2. Term of Employment.
(a) The Employers hereby employ the Executive as President and Chief
Executive Officer and the Executive hereby accepts said employment and agrees to
render such services to the Employers on the terms and conditions set forth in
this Agreement. Unless extended as provided in this Section 2, this Agreement
shall terminate three (3) years after the date first above written. Prior to
the first annual anniversary of the date first above written and each annual
anniversary thereafter, the Boards of Directors of the Employers shall consider,
review (taking
3
<PAGE>
into account all relevant factors, including the Executive's performance) and,
if appropriate, explicitly approve a one-year extension of the remaining term of
this Agreement. The term of this Agreement shall continue to extend each year
if the Boards of Directors so approve such extension unless the Executive gives
written notice to the Employers of the Executive's election not to extend the
term, with such notice to be given not less than thirty (30) days prior to any
such anniversary date. If the Boards of Directors elect not to extend the term,
they shall give written notice of such decision to the Executive not less than
thirty (30) days prior to any such anniversary date. If any party gives timely
notice that the term will not be extended as of any annual anniversary date,
then this Agreement shall terminate at the conclusion of its remaining term.
References herein to the term of this Agreement shall refer both to the initial
term and successive terms.
(b) During the term of this Agreement, the Executive shall perform such
executive services for the Employers as is consistent with his title of
President and Chief Executive Officer.
3. Compensation and Benefits.
(a) The Employers shall compensate and pay the Executive for his
services during the term of this Agreement at a minimum base salary of $______
per year ("Base Salary"), which may be increased from time to time in such
amounts as may be determined by the Boards of Directors of the Employers. In
addition to his Base Salary, the Executive shall be entitled to receive during
the term of this Agreement such bonus payments as may be determined by the
Boards of Directors of the Employers.
(b) During the term of the Agreement, the Executive shall be entitled
to participate in and receive the benefits of any pension or other retirement
benefit plan, profit sharing, stock option, employee stock ownership, or other
plans, benefits and privileges given to employees and executives of the
Employers, to the extent commensurate with his then duties and responsibilities,
as fixed by the Boards of Directors of the Employers. The Employers shall not
make any changes in such plans, benefits or privileges which would adversely
affect the Executive's rights or benefits thereunder, unless such change occurs
pursuant to a program applicable to all executive officers of the Employers and
does not result in a proportionately greater adverse change in the rights of or
benefits to the Executive as compared with any other executive officer of the
Employers. Nothing paid to the Executive under any plan or arrangement
presently in effect or made available in the future shall be deemed to be in
lieu of the salary payable to the Executive pursuant to Section 3(a) hereof.
(c) During the term of this Agreement, the Executive shall be entitled
to paid annual vacation in accordance with the policies as established from time
to time by the Boards of Directors of the Employers. The Executive shall not be
entitled to receive any additional compensation from the Employers for failure
to take a vacation, nor shall the Executive be able to accumulate unused
vacation time from one year to the next, except to the extent authorized by the
Boards of Directors of the Employers.
4
<PAGE>
4. Expenses. The Employers shall reimburse the Executive or otherwise
provide for or pay for all reasonable expenses incurred by the Executive in
furtherance of, or in connection with the business of the Employers, including,
but not by way of limitation, automobile and traveling expenses, and all
reasonable entertainment expenses (whether incurred at the Executive's
residence, while traveling or otherwise), subject to such reasonable
documentation and other limitations as may be established by the Boards of
Directors of the Employers. If such expenses are paid in the first instance by
the Executive, the Employers shall reimburse the Executive therefor.
5. Termination.
(a) The Employers shall have the right, at any time upon prior Notice
of Termination, to terminate the Executive's employment hereunder for any
reason, including without limitation termination for Cause, Disability or
Retirement, and the Executive shall have the right, upon prior Notice of
Termination, to terminate his employment hereunder for any reason.
(b) In the event that (i) the Executive's employment is terminated by
the Employers for Cause, Disability or Retirement or in the event of the
Executive's death, or (ii) the Executive terminates his employment hereunder
other than for Good Reason, the Executive shall have no right pursuant to this
Agreement to compensation or other benefits for any period after the applicable
Date of Termination.
(c) In the event that (i) the Executive's employment is terminated by
the Employers for other than Cause, Disability, Retirement or the Executive's
death or (ii) such employment is terminated by the Executive (a) due to a
material breach of this Agreement by the Employers, which breach has not been
cured within fifteen (15) days after a written notice of non-compliance has been
given by the Executive to the Employers, or (b) for Good Reason, then the
Employers shall, subject to the provisions of Section 6 hereof, if applicable,
(A) Pay to the Executive, in thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination, a cash severance amount equal to three (3) times the Executive's
Average Annual Compensation over the most recent five taxable years, and
(B) Maintain and provide for a period ending at the earlier of (i) the
expiration of the remaining term of employment pursuant hereto prior to the
Notice of Termination or (ii) the date of the Executive's full-time employment
by another employer (provided that the Executive is entitled under the terms of
such employment to benefits substantially similar to those described in this
subparagraph (B)), at no cost to the Executive, the Executive's continued
participation in all group insurance, life insurance, health and accident,
disability and other employee benefit plans, programs and arrangements in which
the Executive was entitled to participate immediately prior to the Date of
Termination (other than stock option plans, employee stock ownership plans and
restricted stock plans of the Employers), provided that in the event that the
Executive's participation in any plan, program or arrangement as provided in
this subparagraph (B) is barred
5
<PAGE>
or during such period any such plan, program or arrangement is discontinued or
the benefits thereunder are materially reduced, the Employers shall arrange to
provide the Executive with benefits substantially similar to those which the
Executive was entitled to receive under such plans, programs and arrangements
immediately prior to the Date of Termination.
6. Limitation of Benefits under Certain Circumstances. If the
payments and benefits pursuant to Section 5 hereof, either alone or together
with other payments and benefits which the Executive has the right to receive
from the Employers, would constitute a "parachute payment" under Section 280G of
the Code, the payments and benefits pursuant to Section 5 hereof shall be
reduced, in the manner determined by the Executive, by the amount, if any,
which is the minimum necessary to result in no portion of the payments and
benefits under Section 5 being non-deductible to either of the Employers
pursuant to Section 280G of the Code and subject to the excise tax imposed under
Section 4999 of the Code. The determination of any reduction in the payments
and benefits to be made pursuant to Section 5 shall be based upon the opinion of
independent tax counsel selected by the Employers and paid by the Employers.
Such counsel shall be reasonably acceptable to the Employers and the Executive;
shall promptly prepare the foregoing opinion, but in no event later than thirty
(30) days from the Date of Termination; and may use such actuaries as such
counsel deems necessary or advisable for the purpose. The Employers shall pay
to the Executive the maximum amount of payments and benefits pursuant to Section
5, as selected by the Executive, which such opinion indicates that there is a
high probability do not result in any of such payments and benefits being
non-deductible to the Employers and subject to the imposition of the excise tax
imposed under Section 4999 of the Code. Nothing contained herein shall result
in a reduction of any payments or benefits to which the Executive may be
entitled upon termination of employment under any circumstances other than as
specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero.
7. Mitigation; Exclusivity of Benefits.
(a) The Executive shall not be required to mitigate the amount of any
benefits hereunder by seeking other employment or otherwise, nor shall the
amount of any such benefits be reduced by any compensation earned by the
Executive as a result of employment by another employer after the Date of
Termination or otherwise.
(b) The specific arrangements referred to herein are not intended to
exclude any other benefits which may be available to the Executive upon a
termination of employment with the Employers pursuant to employee benefit plans
of the Employers or otherwise.
8. Withholding. All payments required to be made by the Employers
hereunder to the Executive shall be subject to the withholding of such amounts,
if any, relating to tax and other payroll deductions as the Employers may
reasonably determine should be withheld pursuant to any applicable law or
regulation.
6
<PAGE>
9. Assignability. The Employers may assign this Agreement and its
rights and obligations hereunder in whole, but not in part, to any corporation,
bank or other entity with or into which the Employers may hereafter merge or
consolidate or to which the Employers may transfer all or substantially all of
its assets, if in any such case said corporation, bank or other entity shall by
operation of law or expressly in writing assume all obligations of the Employers
hereunder as fully as if it had been originally made a party hereto, but may not
otherwise assign this Agreement or its rights and obligations hereunder. The
Executive may not assign or transfer this Agreement or any rights or obligations
hereunder.
10. Notice. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by certified or
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below:
To the Employers: Board of Directors
Homestead Bancorp, Inc.
195 North Sixth Street
Ponchatoula, Louisiana 70454
To the Executive: Lawrence C. Caldwell, Jr.
Homestead Bancorp, Inc.
195 North Sixth Street
Ponchatoula, Louisiana 70454
11. Amendment; Waiver. No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and such officer or officers as
may be specifically designated by the Boards of Directors of the Employers to
sign on its behalf. No waiver by any party hereto at any time of any breach by
any other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.
12. Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the United States
where applicable and otherwise by the substantive laws of the State of
Louisiana.
13. Nature of Obligations. Nothing contained herein shall create or
require the Employers to create a trust of any kind to fund any benefits which
may be payable hereunder, and to the extent that the Executive acquires a right
to receive benefits from the Employers hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employers.
14. Interpretation and Headings. This agreement shall be interpreted
in order to achieve the purposes for which it was entered into. The section
headings contained in this
7
<PAGE>
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.
15. Validity. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect.
16. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.
17. Regulatory Actions. The following provisions shall be applicable
to the parties to the extent that they are required to be included in employment
agreements between a savings association and its employees pursuant to Section
563.39(b) of the Regulations Applicable to all Savings Associations, 12 C.F.R.
Section 563.39(b), or any successor thereto, and shall be controlling in the
event of a conflict with any other provision of this Agreement, including
without limitation Section 5 hereof.
(a) If the Executive is suspended from office and/or temporarily
prohibited from participating in the conduct of the Employers' affairs pursuant
to notice served under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit
Insurance Act ("FDIA") (12 U.S.C. Sections 1818(e)(3) and 1818(g)(1)), the
Employers' obligations under this Agreement shall be suspended as of the date of
service, unless stayed by appropriate proceedings. If the charges in the notice
are dismissed, the Employers may, in their discretion: (i) pay the Executive
all or part of the compensation withheld while its obligations under this
Agreement were suspended, and (ii) reinstate (in whole or in part) any of its
obligations which were suspended.
(b) If the Executive is removed from office and/or permanently
prohibited from participating in the conduct of the Employers' affairs by an
order issued under Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
Sections 1818(e)(4) and (g)(1)), all obligations of the Employers under this
Agreement shall terminate as of the effective date of the order, but vested
rights of the Executive and the Employers as of the date of termination shall
not be affected.
(c) If the Association is in default, as defined in Section 3(x)(1) of
the FDIA (12 U.S.C. Section 1813(x)(1)), all obligations under this Agreement
shall terminate as of the date of default, but vested rights of the Executive
and the Employers as of the date of termination shall not be affected.
(d) All obligations under this Agreement shall be terminated pursuant
to 12 C.F.R. Section 563.39(b)(5) (except to the extent that it is determined
that continuation of the Agreement for the continued operation of the Employers
is necessary): (i) by the Director of the Office of Thrift Supervision ("OTS"),
or his/her designee, at the time the Federal Deposit Insurance Corporation
("FDIC") enters into an agreement to provide assistance to or on behalf of the
Association under the authority contained in Section 13(c) of the FDIA (12
U.S.C. Section 1823(c)); or (ii) by the Director
8
<PAGE>
of the OTS, or his/her designee, at the time the Director or his/her designee
approves a supervisory merger to resolve problems related to operation of the
Association or when the Association is determined by the Director of the OTS to
be in an unsafe or unsound condition, but vested rights of the Executive and the
Employers as of the date of termination shall not be affected.
18. Regulatory Prohibition. Notwithstanding any other provision of
this Agreement to the contrary, any payments made to the Executive pursuant to
this Agreement, or otherwise, are subject to and conditioned upon their
compliance with Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)) and the
regulations promulgated thereunder.
IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.
Attest: HOMESTEAD BANCORP, INC.
- ------------------------------ By: ----------------------------------
Barbara B. Theriot, Secretary Milton J. Schanzbach,
Chairman of the Board
Attest: PONCHATOULA HOMESTEAD SAVINGS, F.A.
- ------------------------------ By: ----------------------------------
Barbara B. Theriot, Secretary Milton J. Schanzbach,
Chairman of the Board
EXECUTIVE
By:
----------------------------------
Lawrence C. Caldwell, Jr.
9
<PAGE>
EXHBIT 10.6
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT, dated this ____ day of ______ 1998, between Homestead
Bancorp, Inc., a Louisiana corporation (the "Corporation"), Ponchatoula
Homestead Savings, F.A., a federally-chartered savings and loan association and
a wholly owned subsidiary of the Corporation (the "Association"), and Barbara B.
Theriot (the "Executive").
WITNESSETH
WHEREAS, the Executive is presently an officer of the Corporation and the
Association (together the "Employers");
WHEREAS, the Employers desire to be ensured of the Executive's continued
active participation in the business of the Employers; and
WHEREAS, in order to induce the Executive to remain in the employ of the
Employers and in consideration of the Executive's agreeing to remain in the
employ of the Employers, the parties desire to specify the severance benefits
which shall be due the Executive in the event that her employment with the
Employers is terminated under specified circumstances;
NOW THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereby agree as follows:
1. Definitions. The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:
(a) Average Annual Compensation. The Executive's "Average Annual
Compensation" for purposes of this Agreement shall be deemed to mean the average
level of compensation paid to the Executive by the Employers or any subsidiary
thereof during the most recent five taxable years preceding the Date of
Termination (or such shorter period as the Executive was employed), including
Base Salary and bonuses under any employee benefit plans of the Employers but
excluding any compensation resulting from the exercise of stock options or the
vesting of restricted stock awards.
(b) Base Salary. "Base Salary" shall have the meaning set forth in
Section 3(a) hereof.
(c) Cause. Termination of the Executive's employment for "Cause" shall
mean termination because of personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule or
regulation (other than traffic violations or similar offenses) or final
cease-and-desist
<PAGE>
order or material breach of any provision of this Agreement. For purposes of
this paragraph, no act or failure to act on the Executive's part shall be
considered "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the Executive's action or omission
was in the best interest of the Employers.
(d) Change in Control of the Corporation. "Change in Control of the
Corporation" shall mean a change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act"), or any successor thereto, whether or not the Corporation is registered
under Exchange Act; provided that, without limitation, such a change in control
shall be deemed to have occurred if (i) any "person" (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation's then outstanding securities; or (ii)
during any period of three consecutive years, individuals who at the beginning
of such period constitute the Board of Directors of the Corporation cease for
any reason to constitute at least a majority thereof unless the election, or the
nomination for election by stockholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were
directors at the beginning of the period.
(e) Code. "Code" shall mean the Internal Revenue Code of 1986, as
amended.
(f) Date of Termination. "Date of Termination" shall mean the date
specified in the Notice of Termination.
(g) Disability. Termination by the Employers of the Executive's
employment based on "Disability" shall mean termination because of any physical
or mental impairment which qualifies the Executive for disability benefits under
the applicable long-term disability plan maintained by the Employers or any
subsidiary or, if no such plan applies, which would qualify the Executive for
disability benefits under the Federal Social Security System.
(h) Good Reason. Termination by the Executive of the Executive's
employment for "Good Reason" shall mean termination by the Executive following a
Change in Control of the Corporation based on:
(i) Without the Executive's express written consent, the failure
to elect or to re-elect or to appoint or to re-appoint the
Executive to the offices of Secretary and Treasurer of the
Employers or a material adverse change made by the Employers
in the Executive's functions, duties or responsibilities as
Secretary and Treasurer of the Employers;
(ii) Without the Executive's express written consent, a material
reduction by the Employers in the Executive's Base Salary as
the same may be increased from time to time or, except to
the extent permitted by Section
2
<PAGE>
3(b) hereof, a material reduction in the package of fringe
benefits provided to the Executive, taken as a whole;
(iii) Without the Executive's express written consent, the
Employers require the Executive to work in an office which
is more than 30 miles from the location of the Employers'
current principal executive office, except for required
travel on business of the Employers to an extent
substantially consistent with the Executive's present
business travel obligations;
(iv) Any purported termination of the Executive's employment for
Cause, Disability or Retirement which is not effected
pursuant to a Notice of Termination satisfying the
requirements of paragraph (j) below; or
(v) The failure by the Employers to obtain the assumption of and
agreement to perform this Agreement by any successor as
contemplated in Section 9 hereof.
(i) IRS. IRS shall mean the Internal Revenue Service.
(j) Notice of Termination. Any purported termination of the
Executive's employment by the Employers for any reason, including without
limitation for Cause, Disability or Retirement, or by the Executive for any
reason, including without limitation for Good Reason, shall be communicated by
written "Notice of Termination" to the other party hereto. For purposes of this
Agreement, a "Notice of Termination" shall mean a dated notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the provision so
indicated, (iii) specifies a Date of Termination, which shall be not less than
thirty (30) nor more than ninety (90) days after such Notice of Termination is
given, except in the case of the Employers' termination of the Executive's
employment for Cause; and (iv) is given in the manner specified in Section 10
hereof.
(k) Retirement. "Retirement" shall mean voluntary termination by the
Executive in accordance with the Employers' retirement policies, including early
retirement, generally applicable to the Employers' salaried employees.
2. Term of Employment.
(a) The Employers hereby employ the Executive as Secretary and
Treasurer and the Executive hereby accepts said employment and agrees to render
such services to the Employers on the terms and conditions set forth in this
Agreement. Unless extended as provided in this Section 2, this Agreement shall
terminate three (3) years after the date first above written. Prior to the
first annual anniversary of the date first above written and each annual
anniversary thereafter, the Boards of Directors of the Employers shall consider,
review (taking into account all relevant factors, including the Executive's
performance) and, if appropriate, explicitly approve
3
<PAGE>
a one-year extension of the remaining term of this Agreement. The term of this
Agreement shall continue to extend each year if the Boards of Directors so
approve such extension unless the Executive gives written notice to the
Employers of the Executive's election not to extend the term, with such notice
to be given not less than thirty (30) days prior to any such anniversary date.
If the Boards of Directors elect not to extend the term, they shall give written
notice of such decision to the Executive not less than thirty (30) days prior to
any such anniversary date. If any party gives timely notice that the term will
not be extended as of any annual anniversary date, then this Agreement shall
terminate at the conclusion of its remaining term. References herein to the
term of this Agreement shall refer both to the initial term and successive
terms.
(b) During the term of this Agreement, the Executive shall perform such
executive services for the Employers as is consistent with her title of
Secretary and Treasurer.
3. Compensation and Benefits.
(a) The Employers shall compensate and pay the Executive for her
services during the term of this Agreement at a minimum base salary of $______
per year ("Base Salary"), which may be increased from time to time in such
amounts as may be determined by the Boards of Directors of the Employers. In
addition to her Base Salary, the Executive shall be entitled to receive during
the term of this Agreement such bonus payments as may be determined by the
Boards of Directors of the Employers.
(b) During the term of the Agreement, the Executive shall be entitled
to participate in and receive the benefits of any pension or other retirement
benefit plan, profit sharing, stock option, employee stock ownership, or other
plans, benefits and privileges given to employees and executives of the
Employers, to the extent commensurate with her then duties and responsibilities,
as fixed by the Boards of Directors of the Employers. The Employers shall not
make any changes in such plans, benefits or privileges which would adversely
affect the Executive's rights or benefits thereunder, unless such change occurs
pursuant to a program applicable to all executive officers of the Employers and
does not result in a proportionately greater adverse change in the rights of or
benefits to the Executive as compared with any other executive officer of the
Employers. Nothing paid to the Executive under any plan or arrangement
presently in effect or made available in the future shall be deemed to be in
lieu of the salary payable to the Executive pursuant to Section 3(a) hereof.
(c) During the term of this Agreement, the Executive shall be entitled
to paid annual vacation in accordance with the policies as established from time
to time by the Boards of Directors of the Employers. The Executive shall not be
entitled to receive any additional compensation from the Employers for failure
to take a vacation, nor shall the Executive be able to accumulate unused
vacation time from one year to the next, except to the extent authorized by the
Boards of Directors of the Employers.
4. Expenses. The Employers shall reimburse the Executive or otherwise
provide for or pay for all reasonable expenses incurred by the Executive in
furtherance of, or in connection
4
<PAGE>
with the business of the Employers, including, but not by way of limitation,
automobile and traveling expenses, and all reasonable entertainment expenses
(whether incurred at the Executive's residence, while traveling or otherwise),
subject to such reasonable documentation and other limitations as may be
established by the Boards of Directors of the Employers. If such expenses are
paid in the first instance by the Executive, the Employers shall reimburse the
Executive therefor.
5. Termination.
(a) The Employers shall have the right, at any time upon prior Notice
of Termination, to terminate the Executive's employment hereunder for any
reason, including without limitation termination for Cause, Disability or
Retirement, and the Executive shall have the right, upon prior Notice of
Termination, to terminate her employment hereunder for any reason.
(b) In the event that (i) the Executive's employment is terminated by
the Employers for Cause, Disability or Retirement or in the event of the
Executive's death, or (ii) the Executive terminates her employment hereunder
other than for Good Reason, the Executive shall have no right pursuant to this
Agreement to compensation or other benefits for any period after the applicable
Date of Termination.
(c) In the event that (i) the Executive's employment is terminated by
the Employers for other than Cause, Disability, Retirement or the Executive's
death or (ii) such employment is terminated by the Executive (a) due to a
material breach of this Agreement by the Employers, which breach has not been
cured within fifteen (15) days after a written notice of non-compliance has been
given by the Executive to the Employers, or (b) for Good Reason, then the
Employers shall, subject to the provisions of Section 6 hereof, if applicable,
(A) Pay to the Executive, in thirty-six (36) equal monthly installments
beginning with the first business day of the month following the Date of
Termination, a cash severance amount equal to three (3) times the Executive's
Average Annual Compensation over the most recent five taxable years, and
(B) Maintain and provide for a period ending at the earlier of (i) the
expiration of the remaining term of employment pursuant hereto prior to the
Notice of Termination or (ii) the date of the Executive's full-time employment
by another employer (provided that the Executive is entitled under the terms of
such employment to benefits substantially similar to those described in this
subparagraph (B)), at no cost to the Executive, the Executive's continued
participation in all group insurance, life insurance, health and accident,
disability and other employee benefit plans, programs and arrangements in which
the Executive was entitled to participate immediately prior to the Date of
Termination (other than stock option plans, employee stock ownership plans and
restricted stock plans of the Employers), provided that in the event that the
Executive's participation in any plan, program or arrangement as provided in
this subparagraph (B) is barred or during such period any such plan, program or
arrangement is discontinued or the benefits thereunder are materially reduced,
the Employers shall arrange to provide the Executive with
5
<PAGE>
benefits substantially similar to those which the Executive was entitled to
receive under such plans, programs and arrangements immediately prior to the
Date of Termination.
6. Limitation of Benefits under Certain Circumstances. If the
payments and benefits pursuant to Section 5 hereof, either alone or together
with other payments and benefits which the Executive has the right to receive
from the Employers, would constitute a "parachute payment" under Section 280G of
the Code, the payments and benefits pursuant to Section 5 hereof shall be
reduced, in the manner determined by the Executive, by the amount, if any,
which is the minimum necessary to result in no portion of the payments and
benefits under Section 5 being non-deductible to either of the Employers
pursuant to Section 280G of the Code and subject to the excise tax imposed under
Section 4999 of the Code. The determination of any reduction in the payments
and benefits to be made pursuant to Section 5 shall be based upon the opinion of
independent tax counsel selected by the Employers and paid by the Employers.
Such counsel shall be reasonably acceptable to the Employers and the Executive;
shall promptly prepare the foregoing opinion, but in no event later than thirty
(30) days from the Date of Termination; and may use such actuaries as such
counsel deems necessary or advisable for the purpose. The Employers shall pay
to the Executive the maximum amount of payments and benefits pursuant to Section
5, as selected by the Executive, which such opinion indicates that there is a
high probability do not result in any of such payments and benefits being
non-deductible to the Employers and subject to the imposition of the excise tax
imposed under Section 4999 of the Code. Nothing contained herein shall result
in a reduction of any payments or benefits to which the Executive may be
entitled upon termination of employment under any circumstances other than as
specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero.
7. Mitigation; Exclusivity of Benefits.
(a) The Executive shall not be required to mitigate the amount of any
benefits hereunder by seeking other employment or otherwise, nor shall the
amount of any such benefits be reduced by any compensation earned by the
Executive as a result of employment by another employer after the Date of
Termination or otherwise.
(b) The specific arrangements referred to herein are not intended to
exclude any other benefits which may be available to the Executive upon a
termination of employment with the Employers pursuant to employee benefit plans
of the Employers or otherwise.
8. Withholding. All payments required to be made by the Employers
hereunder to the Executive shall be subject to the withholding of such amounts,
if any, relating to tax and other payroll deductions as the Employers may
reasonably determine should be withheld pursuant to any applicable law or
regulation.
9. Assignability. The Employers may assign this Agreement and its
rights and obligations hereunder in whole, but not in part, to any corporation,
bank or other entity with or into which the Employers may hereafter merge or
consolidate or to which the Employers may
6
<PAGE>
transfer all or substantially all of its assets, if in any such case said
corporation, bank or other entity shall by operation of law or expressly in
writing assume all obligations of the Employers hereunder as fully as if it had
been originally made a party hereto, but may not otherwise assign this Agreement
or its rights and obligations hereunder. The Executive may not assign or
transfer this Agreement or any rights or obligations hereunder.
10. Notice. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by certified or
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below:
To the Employers: Board of Directors
Homestead Bancorp, Inc.
195 North Sixth Street
Ponchatoula, Louisiana 70454
To the Executive: Barbara B. Theriot
Homestead Bancorp, Inc.
195 North Sixth Street
Ponchatoula, Louisiana 70454
11. Amendment; Waiver. No provisions of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the Executive and such officer or officers as
may be specifically designated by the Boards of Directors of the Employers to
sign on its behalf. No waiver by any party hereto at any time of any breach by
any other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.
12. Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the United States
where applicable and otherwise by the substantive laws of the State of
Louisiana.
13. Nature of Obligations. Nothing contained herein shall create or
require the Employers to create a trust of any kind to fund any benefits which
may be payable hereunder, and to the extent that the Executive acquires a right
to receive benefits from the Employers hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employers.
14. Interpretation and Headings. This agreement shall be interpreted
in order to achieve the purposes for which it was entered into. The section
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.
7
<PAGE>
15. Validity. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect.
16. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.
17. Regulatory Actions. The following provisions shall be applicable
to the parties to the extent that they are required to be included in employment
agreements between a savings association and its employees pursuant to Section
563.39(b) of the Regulations Applicable to all Savings Associations, 12 C.F.R.
Section 563.39(b), or any successor thereto, and shall be controlling in the
event of a conflict with any other provision of this Agreement, including
without limitation Section 5 hereof.
(a) If the Executive is suspended from office and/or temporarily
prohibited from participating in the conduct of the Employers' affairs pursuant
to notice served under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit
Insurance Act ("FDIA") (12 U.S.C. Sections 1818(e)(3) and 1818(g)(1)), the
Employers' obligations under this Agreement shall be suspended as of the date of
service, unless stayed by appropriate proceedings. If the charges in the notice
are dismissed, the Employers may, in their discretion: (i) pay the Executive
all or part of the compensation withheld while its obligations under this
Agreement were suspended, and (ii) reinstate (in whole or in part) any of its
obligations which were suspended.
(b) If the Executive is removed from office and/or permanently
prohibited from participating in the conduct of the Employers' affairs by an
order issued under Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
Sections 1818(e)(4) and (g)(1)), all obligations of the Employers under this
Agreement shall terminate as of the effective date of the order, but vested
rights of the Executive and the Employers as of the date of termination shall
not be affected.
(c) If the Association is in default, as defined in Section 3(x)(1) of
the FDIA (12 U.S.C. Section 1813(x)(1)), all obligations under this Agreement
shall terminate as of the date of default, but vested rights of the Executive
and the Employers as of the date of termination shall not be affected.
(d) All obligations under this Agreement shall be terminated pursuant
to 12 C.F.R. Section 563.39(b)(5) (except to the extent that it is determined
that continuation of the Agreement for the continued operation of the Employers
is necessary): (i) by the Director of the Office of Thrift Supervision ("OTS"),
or his/her designee, at the time the Federal Deposit Insurance Corporation
("FDIC") enters into an agreement to provide assistance to or on behalf of the
Association under the authority contained in Section 13(c) of the FDIA (12
U.S.C. Section 1823(c)); or (ii) by the Director of the OTS, or his/her
designee, at the time the Director or his/her designee approves a supervisory
merger to resolve problems related to operation of the Association or when the
Association is determined by the Director of the OTS to be in an unsafe or
unsound condition,
8
<PAGE>
but vested rights of the Executive and the Employers as of the date of
termination shall not be affected.
18. Regulatory Prohibition. Notwithstanding any other provision of
this Agreement to the contrary, any payments made to the Executive pursuant to
this Agreement, or otherwise, are subject to and conditioned upon their
compliance with Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)) and the
regulations promulgated thereunder.
IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.
Attest: HOMESTEAD BANCORP, INC.
By:
- ----------------------------- ----------------------------------
Milton J. Schanzbach,
Chairman of the Board
Attest: PONCHATOULA HOMESTEAD SAVINGS, F.A.
By:
- ----------------------------- ----------------------------------
Milton J. Schanzbach,
Chairman of the Board
EXECUTIVE
By:
----------------------------------
Barbara B. Theriot
9
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMAITON EXTRACTED FROM DEC. 31,
1997 YEAR-END AUDIT REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1997
<CASH> 609
<INT-BEARING-DEPOSITS> 645
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 16,866
<INVESTMENTS-CARRYING> 10,301
<INVESTMENTS-MARKET> 10,400
<LOANS> 28,334
<ALLOWANCE> 265
<TOTAL-ASSETS> 59,580
<DEPOSITS> 42,111
<SHORT-TERM> 11,500
<LIABILITIES-OTHER> 234
<LONG-TERM> 0
0
0
<COMMON> 2,078
<OTHER-SE> 3,657
<TOTAL-LIABILITIES-AND-EQUITY> 59,580
<INTEREST-LOAN> 2,429
<INTEREST-INVEST> 1,721
<INTEREST-OTHER> 97
<INTEREST-TOTAL> 4,247
<INTEREST-DEPOSIT> 1,971
<INTEREST-EXPENSE> 2,515
<INTEREST-INCOME-NET> 1,732
<LOAN-LOSSES> (16)
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,620
<INCOME-PRETAX> 501
<INCOME-PRE-EXTRAORDINARY> 501
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 316
<EPS-PRIMARY> .52
<EPS-DILUTED> .51
<YIELD-ACTUAL> 2.65
<LOANS-NON> 173
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 173
<ALLOWANCE-OPEN> 282
<CHARGE-OFFS> (1)
<RECOVERIES> (16)
<ALLOWANCE-CLOSE> 265
<ALLOWANCE-DOMESTIC> 265
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<PAGE>
Exhibit 99.3
CONVERSION APPRAISAL REPORT
HOMESTEAD BANCORP, INC.
PROPOSED HOLDING COMPANY FOR
PONCHATOULA HOMESTEAD SAVINGS, F.A.
PONCHATOULA, LOUISIANA
DATED AS OF:
MARCH 20, 1998
PREPARED BY:
RP FINANCIAL, LC.
1700 NORTH MOORE STREET
SUITE 2210
ARLINGTON, VIRGINIA 22209
<PAGE>
[LETTERHEAD]
March 20, 1998
Board of Directors
Homestead Mutual Holding Company, Inc.
Ponchatoula Homestead Savings, F.A.
195 North Sixth Street
Ponchatoula, Louisiana 70454
Gentlemen:
At your request, we have completed and hereby provide an independent
appraisal of the estimated pro forma market value of the common stock which is
to be issued by Homestead Bancorp, Inc., Ponchatoula, Louisiana ("Homestead
Bancorp" or the "Holding Company"), in connection with the mutual-to-stock
conversion of Homestead Mutual Holding Company, Inc. (the "Mutual Holding
Company" or the "MHC"). The Mutual Holding Company currently has a majority
ownership interest in, and its principal asset consists of, the common stock of
Ponchatoula Homestead Savings, F.A., Ponchatoula, Louisiana ("Ponchatoula
Savings" or the "Association"). The conversion involves the offering of shares
of common stock to depositors, employee stock benefit plans, public stockholders
and to certain members of the general public (the "Subscription and Community
offerings").
This Appraisal is furnished pursuant to the conversion regulations
promulgated by the Office of Thrift Supervision ("OTS"). This Appraisal has been
prepared in accordance with the written valuation guidelines promulgated by the
OTS, most recently updated as of October 21, 1994. Specifically, this Appraisal
has been prepared in accordance with the "Guidelines for Appraisal Reports for
the Valuation of Savings and Loan Associations Converting from Mutual to Stock
Form of Organization" of the OTS, as successor to the Federal Home Loan Bank
Board ("FHLBB"), dated as of October 21, 1994; and applicable regulatory
interpretations thereof.
DESCRIPTION OF REORGANIZATION
On February 25, 1998, the Board of Directors of Ponchatoula Savings and the
MHC adopted the Plan of Conversion and Agreement and Plan of Reorganization (the
"Plan"), pursuant to which the MHC will convert from a federally chartered
mutual holding company to a Louisiana-chartered stock corporation. In the RP
Financial, LC. Board of Directors March 20, 1998 Page 2 reorganization process:
(1) the MHC, which currently owns approximately 75.24 percent of the
Association's common stock, will convert to an interim federal stock savings
institution and simultaneously merge with and into the Association, pursuant to
which all shares of the Association's common stock held by the MHC will be
canceled; (2) as a result of the merger of the interim stock savings institution
into the Association, the Association will become a wholly-owned subsidiary of
Homestead Bancorp; and (3) the outstanding Public Ponchatoula Shares will be
converted automatically into and become shares of common stock of the Holding
Company (the "Exchange Shares")
[LETTERHEAD]
<PAGE>
RP FINANCIAL, LC.
BOARD OF DIRECTORS
MARCH 20, 1998
PAGE 2
pursuant to a ratio that will result in the holders of such shares owning
approximately 23.94 percent of the Holding Company (the "Exchange Ratio").
Pursuant to the reorganization, shares of Homestead Bancorp stock will be
offered in Subscription and Community offerings that will represent an ownership
interest in the Holding Company of approximately 76.06 percent.
Going forward, Homestead Bancorp will own 100 percent of the Association's
stock, and the Association will be Homestead Bancorp's sole subsidiary. At this
time, no other activities are contemplated for Homestead Bancorp other than the
ownership of the Association, a loan to the newly-formed ESOP and investment of
Holding Company cash. In the future, Homestead Bancorp may acquire or organize
other operating subsidiaries, although there are no specific plans at present.
RP FINANCIAL, LC.
RP Financial, LC. ("RP Financial") is a financial consulting firm that
specializes in financial valuations and analyses of business enterprises and
securities. The background and experience of RP Financial are detailed in
Exhibit V-1. We believe that, except for the fee we will receive for our
appraisal of the shares to be issued by the Holding Company and assisting the
Association in the preparation of its business plan, we are independent of the
Association, the Mutual Holding Company, the Holding Company and other parties
engaged by the Association to assist in the stock issuance process.
VALUATION METHODOLOGY
In preparing our appraisal, we have reviewed the Mutual Holding Company's
Application for Approval of Conversion, including the Proxy Statement, as filed
with the OTS and the Holding Company's Form S-1 registration statement as filed
with the Securities and Exchange Commission ("SEC"). We have conducted an
analysis of the Association and the Mutual Holding Company (hereinafter,
collectively referred to as the "Association"), that has included due diligence
related discussions with the Association's management; Hannis T. Bourgeois,
L.L.P., the Association's independent auditor; Elias, Matz, Tiernan & Herrick
L.L.P., the Association's conversion counsel; and Trident Securities, Inc.,
which has been retained by the Association as financial and marketing advisor in
connection with the Holding Company's stock offering. All conclusions set forth
in the appraisal were reached independently from such discussions. In addition,
where appropriate, we have considered information based on other available
published sources that we believe are reliable. While we believe the information
and data gathered from all these sources are reliable, we cannot guarantee the
accuracy and completeness of such information.
We have investigated the competitive environment within which the
Association operates and have assessed the Association's relative strengths and
weaknesses. We have kept abreast of the changing regulatory and legislative
environment and analyzed the potential impact on the Association and the
industry as a whole. We have analyzed the potential effects of conversion on the
Association's operating characteristics and financial performance as they
<PAGE>
RP FINANCIAL, LC.
BOARD OF DIRECTORS
MARCH 20, 1998
PAGE 3
relate to the pro forma market value of Ponchatoula Savings. We have reviewed
the economy in the Association's primary market area and have compared the
Association's financial performance and condition with selected publicly-traded
thrift institutions with similar characteristics as the Association's, as well
as all publicly-traded thrifts. We have reviewed conditions in the securities
markets in general and in the market for thrift stocks in particular, including
the market for existing thrift issues and the market for initial public
offerings by thrifts.
Our appraisal is based on the Association's representation that the
information contained in the regulatory applications and additional information
furnished to us by the Association and its independent auditors are truthful,
accurate and complete. We did not independently verify the financial statements
and other information provided by the Association and its independent auditors,
nor did we independently value the assets or liabilities of the Association. The
valuation considers the Association only as a going concern and should not be
considered as an indication of the liquidation value of Ponchatoula Savings.
Our appraised value is predicated on a continuation of the current
operating environment for the Association and for all thrifts. Changes in the
local and national economy, the legislative and regulatory environment, the
stock market, interest rates, and other external forces (such as natural
disasters or significant world events) may occur from time to time, often with
great unpredictability, and may materially impact the value of thrift stocks as
a whole or the Association's value alone. It is our understanding Ponchatoula
Savings intends to remain an independent institution and there are no current
plans for selling control of the Association as a converted institution. To the
extent that such factors can be foreseen, they have been factored into our
analysis.
Pro forma market value is defined as the price at which the Holding
Company's stock, immediately upon completion of the conversion offering, would
change hands between a willing buyer and a willing seller, neither being under
any compulsion to buy or sell and both having reasonable knowledge of relevant
facts.
VALUATION CONCLUSION
It is our opinion that, as of March 20, 1998, the aggregate pro forma
market value of the Association and the Mutual Holding Company was $11,175,390
at the midpoint. Based on this valuation and the approximate 76.06 percent
ownership interest being sold to the public, the midpoint of the Holding
Company's stock offering was $8,500,000, equal to 850,000 shares offered at a
per share value of $10.00. Pursuant to OTS conversion guidelines, the 15 percent
offering range includes a minimum offering of $7,225,000 and a maximum offering
of $9,775,000. Based on the $10.00 per share offering price, this range equates
to an offering of 722,500 shares at the minimum to 977,500 shares at the
maximum. In the event that the appraised value is subject to an increase, up to
1,124,125 shares may be sold at an issue price of $10.00 per share, for an
aggregate offering size of $11,241,250, without a resolicitation.
<PAGE>
RP FINANCIAL, LC.
BOARD OF DIRECTORS
MARCH 20, 1998
PAGE 4
ESTABLISHMENT OF EXCHANGE RATIO
OTS regulations provide that in a conversion of a mutual holding company,
the minority stockholders are entitled to exchange their shares of the
Association's common stock for common stock of the Holding Company. The Board of
Directors of the Mutual Holding Company has independently established a formula
to determine the exchange ratio. The formula takes into account the dividends
considered to be excess by the OTS, resulting in a pro forma ownership for the
Public Ponchatoula Shares of 23.94 percent. Pursuant to the formula, the
Exchange Ratio will be determined at the end of the Holding Company's stock
offering based on the total number of shares sold in the Subscription and
Community offerings. Based upon this formula, and the valuation conclusion and
offering range concluded above, the Exchange Ratio would be 1.5150 shares,
1.7823 shares, 2.0497 shares and 2.3571 shares of Homestead Bancorp stock issued
for each Public Ponchatoula Share, at the minimum, midpoint, maximum and
supermaximum of the offering range, respectively.
LIMITING FACTORS AND CONSIDERATIONS
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of the
common stock. Moreover, because such valuation is necessarily based upon
estimates and projections of a number of matters, all of which are subject to
change from time to time, no assurance can be given that persons who purchase
shares of common stock in the initial offering will thereafter be able to sell
such shares at prices related to the foregoing valuation of the pro forma market
value. The appraisal does not take into account any trading activity with
respect to the purchase and sale of common stock in the secondary market, and
reflects only a valuation range as of this date for the pro forma market value
of the Association immediately upon issuance of the stock.
RP Financial's valuation was determined based on the Association's
financial condition, operations and shares outstanding as of December 31, 1997,
the date of the financial data included in the Holding Company's Prospectus. The
proposed Exchange Ratio and the exchange of the Public Ponchatoula Shares for
newly issued Holding Company shares were determined independently. RP Financial
expresses no opinion on the proposed Exchange Ratio and the exchange of shares
held by the Ponchatoula Savings' public stockholders for newly issued Holding
Company shares.
RP Financial is not a seller of securities within the meaning of any
federal and state securities laws and any report prepared by RP Financial shall
not be used as an offer or solicitation with respect to the purchase or sale of
any securities. RP Financial maintains a policy which prohibits the company, its
principals or employees from purchasing stock of its client institutions.
The valuation will be updated should market conditions or changes in
Ponchatoula Savings' operating results warrant. The valuation will also be
updated at the completion of the Holding Company's stock offering. These updates
will consider, among other things, any developments or changes in the
Association's financial performance and condition, management policies, and
current conditions in the equity markets for thrift shares, both existing issues
and new issues. Also, these updates will consider changes in other external
<PAGE>
RP FINANCIAL, LC.
BOARD OF DIRECTORS
MARCH 20, 1998
PAGE 5
factors which impact value including, but not limited to: various changes in the
legislative and regulatory environment (including changes in the appraisal
guidelines), the stock market and the market for thrift stocks, and interest
rates. Should any such new developments or changes be material, in our opinion,
to the valuation of the shares, appropriate adjustments to the estimated pro
forma market value will be made. The reasons for any such adjustments will be
explained in the update at the date of the release of the update.
Respectfully submitted,
RP FINANCIAL, LC.
/s/ Ronald S. Riggins
------------------------
Ronald S. Riggins
President
/s/ Gregory E. Dunn
------------------------
Gregory E. Dunn
Senior Vice President
<PAGE>
RP FINANCIAL, LC.
TABLE OF CONTENTS
PONCHATOULA HOMESTEAD SAVINGS, F.A.
PONCHATOULA, LOUISIANA
<TABLE>
<CAPTION>
PAGE
DESCRIPTION NUMBER
----------- ------
<S> <C>
CHAPTER ONE OVERVIEW AND FINANCIAL ANALYSIS
Introduction....................................... 1.1
Plan of Conversion and Reorganization.............. 1.1
Strategic Overview................................. 1.2
Balance Sheet Trends............................... 1.6
Income and Expense Trends.......................... 1.9
Interest Rate Risk Management...................... 1.13
Lending Activities and Strategy.................... 1.14
Asset Quality...................................... 1.17
Funding Composition and Strategy................... 1.17
Legal Proceedings.................................. 1.18
CHAPTER TWO MARKET AREA
Introduction....................................... 2.1
Market Area Demographics........................... 2.1
National Economic Factors.......................... 2.3
Local Economy...................................... 2.8
Market Area Deposit Characteristics and
Competition...................................... 2.9
CHAPTER THREE PEER GROUP ANALYSIS
Selection of Peer Group............................ 3.1
Financial Condition................................ 3.5
Income and Expense Components...................... 3.8
Loan Composition................................... 3.12
Interest Rate Risk................................. 3.14
Credit Risk........................................ 3.14
Summary............................................ 3.17
</TABLE>
<PAGE>
RP FINANCIAL, LC.
TABLE OF CONTENTS
PONCHATOULA HOMESTEAD SAVINGS, F.A.
PONCHATOULA, LOUISIANA
(CONTINUED)
<TABLE>
<CAPTION>
PAGE
DESCRIPTION NUMBER
----------- ------
<S> <C>
CHAPTER FOUR VALUATION ANALYSIS
Introduction....................................... 4.1
Appraisal Guidelines............................... 4.1
RP Financial Approach to the Valuation............. 4.1
Valuation Analysis................................. 4.2
1. Financial Condition........................... 4.3
2. Profitability, Growth and Viability of
Earnings...................................... 4.4
3. Asset Growth.................................. 4.7
4. Primary Market Area........................... 4.7
5. Dividends..................................... 4.9
6. Liquidity of the Shares....................... 4.10
7. Marketing of the Issue........................ 4.10
A. The Public Market........................ 4.11
B. The New Issue Market..................... 4.17
C. The Acquisition Market................... 4.19
D. The Market for Ponchatoula Savings'
Stock.................................... 4.21
8. Management.................................... 4.21
9. Effect of Government Regulation and
Regulatory Reform............................. 4.22
Summary of Adjustments............................. 4.22
Valuation Approaches............................... 4.23
1. Price-to-Earnings ("P/E")..................... 4.24
2. Price-to-Book ("P/B")......................... 4.25
3. Price-to-Assets ("P/A")....................... 4.26
Valuation Conclusion............................... 4.26
Establishment of Exchange Ratio.................... 4.27
</TABLE>
<PAGE>
RP FINANCIAL, LC.
LIST OF TABLES
P0NCHATOULA HOMESTEAD SAVINGS, F.A.
PONCHATOULA, LOUISIANA
<TABLE>
<CAPTION>
TABLE PAGE
NUMBER DESCRIPTION NUMBER
------ ----------- ------
<S> <C> <C>
1.1 Summary Balance Sheet Data.................. 1.7
1.2 Historical Income Statement................. 1.10
2.1 Summary Demographic Data.................... 2.2
2.2 Major Employers in Tangipahoa Parish........ 2.8
2.3 Market Area Unemployment Trends............. 2.9
2.4 Deposit Summary............................. 2.10
3.1 Peer Group of Publicly-Traded Thrifts....... 3.3
3.2 Balance Sheet Composition and Growth Rates.. 3.6
3.3 Income as a Percent of Average Assets
and Yields, Costs, Spreads.................. 3.9
3.4 Loan Portfolio Composition Comparative
Analysis.................................... 3.13
3.5 Interest Rate Risk Comparative Analysis..... 3.15
3.6 Peer Group Credit Risk Comparative
Analysis.................................... 3.16
4.1 Market Area Unemployment Rates.............. 4.8
4.2 Conversion Pricing Characteristics.......... 4.18
4.3 Market Pricing Comparatives................. 4.20
4.4 Public Market Pricing....................... 4.28
</TABLE>
<PAGE>
RP FINANCIAL, LC.
PAGE 1.1
I. OVERVIEW AND FINANCIAL ANALYSIS
INTRODUCTION
Ponchatoula Homestead Savings, F.A. ("Ponchatoula Savings" or the
"Association") is a federally chartered stock savings institution
headquartered in Ponchatoula, Louisiana. In addition to its main office,
which includes a full service branch, the Association maintains one other
full service branch in Amite, Louisiana. Both offices are located in
Tangipahoa Parish, which is located in southeast Louisiana approximately 45
miles northwest of New Orleans. Ponchatoula Savings was organized in 1911 and
has operated as traditional thrift throughout its history. Ponchatoula
Savings is a member of the Federal Home Loan Bank ("FHLB") system, with its
deposits insured up to the regulatory maximums by the Savings Association
Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation
("FDIC"). At December 31, 1997, Ponchatoula Savings had $59.6 million in
assets, $42.1 million in deposits and total equity of $5.7 million or 9.6
percent of total assets.
The Association was reorganized as a stock savings and loan association
on August 31, 1994. As part of that reorganization, a mutual holding company
was formed. The mutual holding company is a federal corporation, chartered
and regulated by the OTS, and is named Homestead Mutual Holding Company (the
"MHC"). In connection with the reorganization, the Association issued 143,760
shares of its common stock to certain member of the general public, with the
remaining shares of its common stock (456,240) issued to the MHC. As of
December 31, 1997, there were 606,345 total shares of the Association's
common stock issued and outstanding, of which 456,240 shares, or 75.24
percent, were owned by the MHC and 150,105 shares, or 24.76 percent, were
owned by the public.
PLAN OF CONVERSION AND REORGANIZATION
On February 25, 1998, the Board of Directors of Ponchatoula Savings and
the MHC adopted the Plan of Conversion and Agreement and Plan of
Reorganization (the "Plan"), pursuant to which the MHC will convert from a
federally chartered mutual holding company to a Louisiana-chartered stock
corporation. In the reorganization process: (1) the MHC, which currently owns
approximately 75.24 percent of the Association's common stock, will convert
to an interim federal stock savings institution and simultaneously merge with
and into the Association, pursuant to which all shares of the Association's
common stock held by the
<PAGE>
RP FINANCIAL, LC.
PAGE 1.2
MHC will be canceled; (2) as a result of the merger of the interim stock
savings institution into the Association, the Association will become a
wholly-owned subsidiary of Homestead Bancorp, Inc. ("Homestead Bancorp" or
the "Holding Company"); and (3) the outstanding Public Ponchatoula Shares
will be converted automatically into and become shares of common stock of the
Holding Company (the "Exchange Shares") pursuant to a ratio that will result
in the holders of such shares owning approximately 23.94 percent of the
Holding Company (the "Exchange Ratio").
Pursuant to the reorganization, shares of Homestead Bancorp stock will
be offered in Subscription and Community offerings that will represent an
ownership interest in the Holding Company of approximately 76.06 percent.
Going forward, Homestead Bancorp will own 100 percent of the
Association's stock, and the Association will be Homestead Bancorp's sole
subsidiary. At this time, no other activities are contemplated for Homestead
Bancorp other than the ownership of the Association, a loan to the
newly-formed ESOP and investment of Holding Company cash. In the future,
Homestead Bancorp may acquire or organize other operating subsidiaries,
although there are no specific plans at present.
STRATEGIC OVERVIEW
Ponchatoula Savings' operations have traditionally been oriented
towards originating single-family permanent mortgage loans funded by retail
deposits, with the Association's lending and deposit activities being
substantially derived from its local customer base. Most of the Association's
business is conducted within a 60 mile radius of its main office, which
includes the Parishes of Tangipahoa, Livingston and St. Helena. The regional
economy is supported by the gas, oil and chemical industries, which have
provided for somewhat of an unstable economy over the past decade. The
shakeout in the oil and gas industries in the mid- and late-1980s had a
notable adverse effect on the Association's local economy, with the downturn
being exacerbated by the rapid economic growth that had preceded the economic
decline. The boom and bust cycle in southern Louisiana led to a significant
increase in unemployment and deterioration in local real estate market
conditions. While the Association's credit quality was impaired by the
economic downturn, Ponchatoula Savings avoided the significant losses
experienced by many of its thrift competitors as the Association adhered to a
low risk 1-4 family lending strategy.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.3
The recovery of the oil and gas industries, along with greater economic
diversification, has provided for a recovery in the regional economy and the
Association's local market area has experienced growth as well. The market
area has a fairly diversified local economy and maintains a fairly large
commuter base to the nearby metropolitan areas of New Orleans and Baton
Rouge. Demographic growth and an improving local economy has facilitated a
downward trend in Ponchatoula Savings' balance of non-performing assets, as the
Association's non-performing assets-to-assets ratio declined from 3.09
percent at December 31, 1993 to 0.29 percent at December 31, 1997.
Beyond 1-4 family permanent mortgage lending, consumer lending has
constituted the Association's primary area of lending diversification.
Home equity and home improvement loans account for the highest concentration
of Ponchatoula Savings' consumer loan portfolio and, thus, that portfolio is
also viewed as being relatively low risk in nature. To a lesser extent,
Ponchatoula Savings originates construction/permanent loans for building 1-4
family residences, land loans, and commercial real estate loans. The
Association's lending strategy going forward is expected to continue to
emphasize 1-4 family and consumer lending. Growth of the 1-4 family loan
portfolio is expected to be facilitated by the Association's recent in
strategy to retain most fixed rate loan originations for portfolio.
Previously, the Association sold fixed rate loans with the terms of more than
15 years to the secondary market on a servicing released basis. To manage
the interest rate risk associated with retaining the longer term fixed rate
loans, the Association's plans to fund the fixed rate loan growth with
longer-term FHLB advances.
Ponchatoulas' Saving investment portfolio reflects a low risk
investment strategy, which has emphasized purchases of adjustable rate
mortgage-backed securities that are guaranteed or insured by federal
agencies. The remainder of the investment portfolio is comprised of U.S.
Government and agency securities, which have maturities of less than two
years. Growth of the mortgage-backed securities portfolio has accounted for
most of the Association's asset growth in recent years, reflecting the
implementation of a limited amount of wholesale leveraging by Ponchatoula
Savings in which short-term FHLB advances were used to fund purchases of
mortgage-backed securities.
Retail deposits have served as the primary interest-bearing funding
source for the Association, although recent asset growth by the Association
has been funded by FHLB advances. FHLB advances have been utilized to support
control of deposit costs, reflecting the Association's strategy of not paying
above market rates to facilitate deposit growth. In the
<PAGE>
RP FINANCIAL, LC.
PAGE 1.4
current interest rate environment, the Association's capacity to realize
deposit growth without paying high end rates is viewed as being limited and,
thus, FHLB advances are expected to an increasing component of Ponchatoula
Savings' interest-bearing funding composition going forward. In addition to
utilizing long-term FHLB advances to fund fixed rate loan growth, additional
short-term FHLB advances may be utilized to facilitate leveraging of the
balance sheet through purchasing adjustable rate mortgage-backed securities.
Ponchatoula Savings' earnings base is largely dependent upon net
interest income and operating expense levels, reflecting the Association's
emphasis on a traditional thrift operating strategy. The Association
maintains a relatively low net interest margin, reflecting an emphasis on
limiting credit risk and interest rate risk exposure at the expense of
foregoing a wider yield-cost spread. Operating expenses represent the other
major component of the Association's earnings and are maintained at a
relatively high level for a traditional thrift operation. The Association's
relatively high operating expense ratio can in part be attributed to its
previous strategy of selling fixed rate loan originations, as the Association
incurred expenses to originate and sell the loans without any offsetting
growth of assets. Accordingly, the Association's current strategy of
retaining fixed rate loan originations and increased capital position
following the infusion of conversion proceeds is expected to facilitate
leveraging of the operating expense ratio. At the same time, Ponchatoula
Savings will incur additional operating expenses following the conversion,
including expenses associated with the stock benefit plans and, thus,
leveraging of the operating expense ratio is not expected to be significant
following the conversion.
Over the past five fiscal years, Ponchatoula Savings' operating strategy
has resulted in expansion of assets, an increasing capital position and
positive earnings. Earnings have been somewhat contained by the Association's
emphasis on limiting interest rate risk and credit risk exposure. The
Association's business plan is to continue to operate as a community-oriented
bank, serving the local customer base with an array of loan and depository
products.
The Association's Board of Directors has elected to convert to the full
stock form of ownership to improve the competitive position of Ponchatoula
Savings. A full stock conversion will also provide existing public
shareholders with greater liquidity in their shares by significantly
increasing the number of shares outstanding to the public, which is expected
to facilitate a NASDAQ Small-Cap Issue listing for the stock. The additional
capital realized from conversion proceeds will increase liquidity to support
funding of future loan growth and other interest-earning assets. Ponchatoula
Savings' higher capital position resulting from the
<PAGE>
RP FINANCIAL, LC.
PAGE 1.5
infusion of conversion proceeds will also serve to reduce interest rate risk,
through enhancing the Association's interest-earnings assets/interest-bearing
liabilities ("IEA/IBL") ratio. The additional funds realized from the stock
offering will provide an alternative funding source to deposits and
borrowings in meeting the Association's future funding needs, which may
facilitate a reduction in the Association's funding costs. Additionally,
Ponchatoula Savings' higher equity-to-assets ratio will also better position
the Association to take advantage of expansion opportunities as they arise
and further leveraging of the balance sheet. Such expansion would most likely
occur through acquiring branches in areas that would provide for further
penetration in the markets currently served by the Association or nearby
surrounding markets. At this time, the Association has no other specific
plans for expansion other than internal growth. The Association's projected
internal use of proceeds are highlighted below.
The proceeds from the conversion are expected to be deployed as follows:
- HOLDING COMPANY. Up to 50 percent of the net conversion proceeds
will be retained by Homestead Bancorp. The Holding Company intends
to use a portion of the net proceeds to loan funds to the
Association's ESOP to enable the ESOP to purchase 8.0 percent of
the gross offering amount. The balance of the funds retained by the
Holding Company will be invested initially into short-term
investments. Over time, the Holding Company funds may be utilized
for various corporate purposes, including payment of dividends and
possible repurchases of common stock consistent with OTS
limitations.
- PONCHATOULA SAVINGS. Approximately 50 percent of the net conversion
proceeds will be infused into the Association in exchange for all
of the Association's newly issued stock. Proceeds infused into the
Association will initially be held in short-term investments. Over
time, the proceeds are expected to be redeployed into the
Association's loan growth and normal investment activities.
Overall, it is the Association's objective to pursue growth that will
serve to increase returns, while, at the same time, growth will not be
pursued that could potentially compromise the overall risk associated with
Ponchatoula Savings' operations. The Association has acknowledged that it
intends to operate with excess capital in the near term, operating with a
below market return on equity, until such time as the new capital can be
leveraged in a safe and sound manner over an extended period of time.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.6
BALANCE SHEET TRENDS
From December 31, 1993 through December 31, 1997, Ponchatoula Savings
exhibited annual asset growth of positive 4.6 percent (see Table 1.1).
During this period, the Association's interest-earning asset composition
exhibited a shift towards a higher concentration of investment securities,
reflecting Ponchatoula Savings' use of FHLB advances to fund purchases of
adjustable rate mortgage-backed securities. Overall, loan growth was slightly
positive during the period, although the concentration of loans receivable
declined from 55.1 percent of assets to 47.1 percent. Asset growth was funded
by borrowings and capital growth, as deposits declined during the period. A
summary of Ponchatoula Savings' key operating ratios for the past five fiscal
years are presented in Exhibit I-3.
Ponchatoula Savings' loan and leases receivable portfolio increased at a
0.6 percent annual rate from fiscal year end 1993 through fiscal year end
1997, with the most notable growth occurring during fiscal 1997. From fiscal
year end 1993 to fiscal year end 1995 the Association's loan and leases
receivable balance declined from $27.4 million to $25.9 million, as there was
very limited demand for adjustable rate 1-4 family loans and Ponchatoula
Savings sold substantially all fixed rate 1-4 family loan originations to the
secondary market. Growth in the loan portfolio subsequent to fiscal year end
1995 was supported by the Association's change in philosophy to retain
15-year fixed rate loan originations, subject to meeting certain
loan-to-value ("LTV") and interest rate criteria. Further growth of the
portfolio should be facilitated by the Association's recent decision
(February 1998) to retain all fixed rate loan originations, with LTV ratios
of 80 percent or less. Fixed rate loans which the Association does not plan
to hold are maintained as held for sale and are typically sold to the
secondary market on a servicing released basis.
Ponchatoula Savings' emphasis on 1-4 family lending is reflected in its
loan portfolio composition, with 63.9 percent of gross loans and leases
outstanding consisting of 1-4 family permanent mortgage at December 31, 1997.
Similarly, at fiscal year end 1995, 1-4 family loans comprised 60.1 percent
of total loans and leases outstanding. The balance of the loan portfolio is
diversified among construction, commercial real estate, land and consumer
loans, with consumer loans accounting for the Association's most notable area
of lending diversification. As of December 31, 1997, consumer loans comprised
$7.2 million, or 22.8 percent, of the Association's loan and lease portfolio,
versus comparative measures of $6.1 million, or 20.6 percent, of the
Association's loan and lease portfolio at fiscal year end 1995. Construction
loans represented the next largest type of lending diversification, totaling
$3.2
<PAGE>
RP FINANCIAL, LC
PAGE 1.7
Table 1.1
Ponchatoula Homestead Savings, F.A.
Historical Balance Sheets(1)
(Amount and Percent of Assets)
<TABLE>
<CAPTION>
At Fiscal Year End December 31, Annual
----------------------------------------------------------------------------------- Growth
1993 1994 1995 1996 1997 Rate
--------------- --------------- --------------- --------------- --------------- -------
Amount Pct Amount Pct Amount Pct Amount Pct Amount Pct Pct
------ --- ------ --- ------ --- ------ --- ------ --- ---
($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Amount of:
Assets.......................... $49,740 100.0% $50,146 100.0% $56,876 100.0% $60,691 100.0% $59,580 100.0% 4.62%
Cash and cash equivalents....... 3,388 6.8% 920 1.8% 2,244 3.9% 1,298 2.1% 1,254 2.1% -22.00%
Securities available for sale... -- 0.0% 17,671 35.2% 19,207 33.8% 18,871 31.1% 16,866 28.3% N.M.
Securities held to maturity..... 15,048 30.3% 3,114 6.2% 6,259 11.0% 10,254 16.9% 10,301 17.3% -9.04%
FHLB stock...................... 435 0.9% 455 0.9% 485 0.9% 543 0.9% 584 1.0% 7.64%
Loans held for sale............. 2,588 5.2% 1,275 2.5% 1,766 3.1% 2,290 3.8% 1,414 2.4% -14.03%
Loans and leases receivable,
net........................... 27,427 55.1% 25,471 50.8% 25,860 45.5% 26,150 43.1% 28,069 47.1% 0.58%
Deposits........................ 45,913 92.3% 41,961 83.7% 44,889 78.9% 44,427 73.2% 42,111 70.7% -2.14%
Borrowings...................... -- 0.0% 3,200 6.4% 6,300 11.1% 10,700 17.6% 11,500 19.3% N.M.
Total equity.................... 3,697 7.4% 4,779 9.5% 5,484 9.6% 5,443 9.0% 5,735 9.6% 11.60%
Full service branches........... 2 2 2 2 2
</TABLE>
- ----------
(1) Ratios are as a percent of ending assets.
Sources: Ponchatoula Savings' prospectus, audited financial statements and RP
Financial calculations.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.8
million, or 10.3 percent, of total loans outstanding at December 31, 1997,
versus comparative measures of $3.0 million, or 10.3 percent, of total loans
and leases outstanding at fiscal year end 1995. Commercial real estate and
land loans represent very minor areas of lending diversification for the
Association. Similarly, the Association maintained a modest balance of leases
at fiscal year end 1997, which amounted to 1.0 percent of total loans and
leases outstanding. Comparatively, at fiscal year end 1995, leases comprised
8.1 percent of total loans and leases outstanding, reflecting the
Association's use of leases to return REO properties, primarily 1-4 family
properties, to an earning status. The Association's present strategy is to
continue to emphasize lending diversification growth in consumer loans, with
loans secured by 1-4 family properties remaining the primary lending activity
for Ponchatoula Savings.
Investment securities have accounted for the largest portion of the
Association's asset growth during the period shown in Table 1.1. From fiscal
year end 1993 to fiscal year end 1997, the investment securities balance
increased from $15.0 million, or 30.3 percent, of assets to $27.2 million, or
45.6 percent, of assets. The investment securities balance peaked at $29.2
million, or 48.0 percent, of assets at fiscal year end 1996. During fiscal
1997, a portion of the investment securities balance was replaced with loan
growth. Growth of the investment securities portfolio has been largely
realized through purchasing adjustable rate mortgage-backed securities with
funding provided by short-term FHLB advances. As of December 31, 1997,
mortgage-backed securities accounted for $24.5 million, or 90.4 percent, of
the investment securities portfolio, versus comparative measures of $12.6
million, or 83.9 percent, of the investment securities portfolio at December
31, 1993. Mortgage-backed securities held by the Association are guaranteed
or insured by a federal agency and consist substantially of adjustable rate
securities. The balance of the investment securities portfolio consists of
U.S. Government and agency securities, which have maturities of less than two
years. As of December 31, 1997, the Association maintained $2.6 million of
U.S. Government and agency securities. Mortgage-backed securities purchased
with short-term FHLB advances are maintained as held-to-maturity investments,
and totaled $10.3 million at December 31, 1997. As of December 31, 1997, all
other investments were maintained as available-for-sale, consisting of $14.3
million of mortgage-backed securities and $2.6 million of U.S. Government and
agency securities. The Association maintained a net unrealized loss of
$53,000 on the available-for-sale portfolio, as of December 31, 1997. Exhibit
I-4 provides historical detail of the Association's investment portfolio
composition.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.9
In addition to the investment securities portfolio, Ponchatoula Savings
held cash and cash equivalents and FHLB stock, which equaled $1.3 million, or
2.1 percent, of assets and $584,000, or 1.0 percent, of assets, respectively,
at December 31, 1997. In recent years, the Association has maintained the
level of cash and cash equivalents at approximately 2.0 percent of assets.
Deposits constitute the largest component of the Association's
interest-bearing funding composition, although borrowings have become a more
prominent funding source for Ponchatoula Savings in recent years. From fiscal
year end 1993 through fiscal year end 1997, the Association's deposits
declined at a 2.1 percent annual rate. Comparatively, the Association's
borrowings increased from a zero balance at fiscal year end 1993 to $11.5
million at fiscal year end 1997. Over the past five fiscal years, the
Association's deposit composition has exhibited a shift towards a higher
concentration of CDs. The shift in deposit composition has been primarily
attributable to shrinkage in the balance of transaction and savings accounts,
and to a lesser extent growth in the CD balance. As of December 31, 1997, CDs
comprised 74.6 percent of the Association's deposits, versus a comparative
ratio of 61.0 percent at December 31, 1993. Borrowings held by the
Association consist of short-term FHLB advances. In the current interest rate
environment, borrowings are expected to remain as the primary funding source
to fund asset growth.
Positive earnings during the past four fiscal years, along with the
minority stock offering, translated into an annual capital growth rate of
11.6 percent for the Association. Capital growth outpaced the Association's
asset growth, as Ponchatoula Savings' equity-to-assets ratio increased from
7.4 percent at the end of fiscal 1993 to 9.6 percent at the end of fiscal
1997. All of the Association's capital is tangible capital, and the
Association maintained capital surpluses relative to all of its regulatory
capital requirements at December 31, 1997. The addition of conversion
proceeds will serve to strengthen Ponchatoula Savings' capital position and
competitive posture within its primary market area, as well as support
expansion into other nearby markets if favorable growth opportunities are
presented.
INCOME AND EXPENSE TRENDS
The Association has reported positive earnings over the past five fiscal
years, ranging from a low of 0.25 percent of average assets in fiscal 1996 to
a high of 0.92 percent of average assets in fiscal 1994 (see Table 1.2). For
fiscal 1997, the Association reported net
<PAGE>
RP FINANCIAL, LC
PAGE 1.10
Table 1.2
Ponchatoula Homestead Savings, F.A.
Historical Income Statements(1)
(Amount and Percent of Average Assets)
<TABLE>
<CAPTION>
For the Fiscal Year Ended December 31,
--------------------------------------------------------------------------------------
1993 1994 1995 1996 1997
-------------- -------------- -------------- -------------- --------------
Amount Pct Amount Pct Amount Pct Amount Pct Amount Pct
($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%)
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest Income ...................... $ 3,343 6.64% $ 3,147 6.49% $ 3,988 7.36% $ 4,276 7.32% $ 4,247 7.12%
Interest Expense .................... (1,799) -3.57% (1,518) -3.13% (2,342) -4.32% (2,591) -4.44% (2,515) -4.22%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Net Interest Income ................. $ 1,544 3.07% $ 1,629 3.36% $ 1,646 3.04% $ 1,685 2.89% $ 1,732 2.90%
Provision for Loan Losses ........... 4 0.01% 7 0.01% 6 0.01% (3) -0.01% 16 0.03%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Net Interest Income after
Provisions ........................ $ 1,548 3.08% $ 1,636 3.37% $ 1,652 3.05% $ 1,682 2.88% $ 1,748 2.93%
Other Income ........................ 162 0.32% 141 0.29% 168 0.31% 194 0.33% 206 0.35%
Operating Expense ................... (1,530) -3.04% (1,445) -2.98% (1,582) -2.92% (1,629) -2.79% (1,593) -2.67%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Net Operating Income ............... $ 180 0.36% $ 332 0.68% $ 238 0.44% $ 247 0.42% $ 361 0.61%
Non-Operating Income
Net gain(loss) on sales of loans
& invest ............................ $ 533 1.06% $ 276 0.57% $ 210 0.39% $ 240 0.41% $ 167 0.28%
Real estate owned .................... (37) -0.07% 22 0.05% 11 0.02% 3 0.01% (27) -0.05%
Other non-operating income(loss) ..... 0 0.00% 0 0.00% 0 0.00% (284) -0.49% 0 0.00%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Net Non-Operating Income .......... 496 0.99% 298 0.61% 221 0.41% (41) -0.07% 140 0.23%
Net Income Before Tax ............... $ 676 1.34% $ 630 1.30% $ 459 0.85% $ 206 0.35% $ 501 0.84%
Income Taxes ........................ (218) -0.43% (184) -0.38% (150) -0.28% (60) -0.10% (185) -0.31%
Change in Acctg. Principle ........... -- -- -- -- -- -- -- -- -- --
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Net Income (Loss) ................... $ 458 0.91% $ 446 0.92% $ 309 0.57% $ 146 0.25% $ 316 0.53%
Core Earnings
Net Income Before Ext. Items ......... $ 458 0.91% $ 446 0.92% $ 309 0.57% $ 146 0.25% $ 316 0.53%
Addback: Non-Operating Losses ........ 0 0.00% 0 0.00% 0 0.00% 284 0.49% 0 0.00%
Deduct: Non-Operating Gains .......... 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Tax Effect Non-Op. Items(2) .......... 0 0.00% 0 0.00% 0 0.00% (97) -0.17% 0 0.00%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Core Net Income ...................... $ 458 0.91% $ 446 0.92% $ 309 0.57% $ 333 0.57% $ 316 0.53%
</TABLE>
- ----------------------------
(1) Ratios are as a percent of average assets.
(2) Assumes tax rate of 34.0 percent.
Sources: Ponchatoula Savings' prospectus, audited financial statements and RP
Financial calculations.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.11
income of $316,000, equal to 0.53 percent of average assets. The lower return
posted during fiscal 1996 reflects the impact of the one time special
assessment to recapitalize the SAIF, while the higher returns posted for
fiscal years 1993 and 1994 were supported by gains realized from selling
fixed rate loan originations during a period of high refinancing activity.
Consistent with the Association's traditional thrift operating mode, net
interest income and operating expenses have been the dominant factors in
Ponchatoula Savings' earnings, which is supplemented by non-interest
operating income derived mainly from loan fees and service charges. The
Association's improving credit quality measures have limited the impact of
loss provisions on earnings, while gains realized from the sale of fixed rate
loan originations have been an ongoing contributor to the Association's
earnings over the past five fiscal years.
Ponchatoula Savings' level of net interest income before provision for
loan losses peaked at 3.36 percent of average assets in fiscal 1994,
paralleling the peak in earnings posted by the Association. The net interest
income to average assets ratio declined to a low of 2.89 percent during
fiscal 1996 and remained stable through fiscal 1997. A decline in the
interest expense ratio provided for the peak in the net interest income ratio
posted fiscal year 1994, which was attributable to a reduction in the
Association's cost of funds and an improving capital position. Likewise, the
subsequent decline in the net interest income ratio was largely attributable
to an increase in the Association's interest expense ratio, which was
partially negated by an increase in the interest income ratio. Factors
accounting for the increase in the Association's interest expense ratio
included higher interest rates being paid for deposits, a shift in deposit
composition towards relatively higher costing CDs, and an increased
utilization of borrowings. The increase in the interest income ratio occurred
during fiscal 1995 and was supported by the upward repricing of interest rate
sensitive assets.
The impact of interest rates on Ponchatoula Savings' net interest margin
is further revealed through examination of the Association's historical net
interest rate spreads and yields and costs set forth in Exhibits I-3 and I-5.
In general, trends in the Association's net interest margin paralleled the
widening and narrowing of the yield-cost spread. After peaking at 3.20
percent during fiscal 1994, Ponchatoula Savings' interest rate spread
declined to 2.73 percent and 2.54 percent during fiscal years 1995 and 1996,
respectively. The narrowing of the Association's interest rate spread
resulted primarily from an increase in the Association's cost of funds which
occurred during fiscal years 1995 and 1996, and to a lesser extent a decline
in the yield earned on interest-earning assets which occurred during fiscal
1996. During fiscal 1997 the Association's yield-cost spread increased
slightly to 2.65 percent, which was
<PAGE>
RP FINANCIAL, LC.
PAGE 1.12
supported by a decline in Ponchatoula Savings' cost of funds. Overall, the
relatively narrow yield-cost spread maintained by Ponchatoula Savings
reflects the Association's emphasis on managing interest rate risk through
maintaining a high concentration of interest-earning assets in short-term and
adjustable rate instruments. The Association's recent change in strategy to
maintain most fixed rate loan originations for portfolio will not necessarily
serve to widen the yield-cost spread, as Ponchatoula Savings plans to fund
the fixed rate loan growth with long-term FHLB advances.
Consistent with the Association's adherence to a traditional thrift
operating philosophy and resultant limited diversification, sources of
non-interest operating income have not been a significant contributor to the
Association's earnings. Throughout the period shown in Table 1.2, sources of
non-interest operating income have ranged from a low of 0.29 percent of
average assets in fiscal 1993 to a high of 0.35 percent of average assets in
fiscal 1997. Sources of non-interest operating income consist substantially
of loans fees and service charges. At this time, the Association has no plans
to diversify into activities that would generate additional non-interest
operating income, and, thus, Ponchatoula Savings' earnings can be expected to
remain highly dependent upon the net interest margin.
Ponchatoula Savings' operating expenses as a percent of average assets
have trended steadily lower over the past five fiscal years, declining from
3.04 of average assets during fiscal 1993 to 2.67 percent during fiscal 1997.
The decline in the operating expense ratio has been facilitated by the
wholesale leveraging, as such growth has notably lower servicing costs as
compared to retail growth. Notwithstanding the decline in the operating
expense ratio, Ponchatoula Savings' operating expense ratio is considered to
be relatively high in view of its traditional thrift operating strategy. The
Association's relatively high operating expense ratio can in part be
explained by its past philosophy of selling fixed rate loan originations,
which results in personnel cost without any offsetting growth in assets.
Assets per full time equivalent employee equaled $2.8 million for the
Association, versus a comparative average of $4.4 million for all
publicly-traded SAIF-insured thrifts. Upward pressure will be placed on the
Association's operating expense ratio following the stock offering, due to
expenses associated with operating as a fully-converted publicly-traded
company, including expenses related to the stock benefit plans. At the same
time, the increase in capital realized from the stock offering will increase
the Association's capacity to leverage operating expenses through pursuing a
more aggressive growth strategy.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.13
Overall, the general trends in the Association's net interest margin and
operating expense ratio since fiscal 1993 has resulted in a slight increase
in the Association's core earnings, as indicated by an increase in the
Association's expense coverage ratio (net interest income divided by
operating expenses). Ponchatoula Savings' expense coverage ratio equaled
1.01 times during fiscal 1993, versus a comparative ratio of 1.09 times
during fiscal 1997. Similarly, Ponchatoula Savings' efficiency ratio
(operating expenses, net of amortization of intangibles, as a percent of the
sum of net interest income, other operating income and real estate
operations) of 83.4 percent for fiscal 1997 was slightly more favorable than
the 91.6 percent efficiency ratio maintained during fiscal 1993.
Over the past five fiscal years, credit quality related losses have not
been a material factor in the Association's earnings, reflecting Ponchatoula
Savings' improving credit quality measures, along with positive trends in
the local real estate market and limited loan growth. In fact, during fiscal
1997 the Association realized a modest recovery on loan loss provisions and a
modest amount of income from the sale of real estate owned. As of December
31, 1997, the Association maintained valuation allowances of $265,000, equal to
0.94 percent of net loans and leases receivable and 153.2 percent of
non-performing assets. Exhibit I-6 sets forth the Association's loan loss
allowance activity during the past three fiscal years.
Gains realized from the sale of loans have been a consistent part of the
Association's operating strategy, reflecting the sale of fixed rate loans to
the secondary market on a servicing released basis. Such gains ranged from a
high of 1.06 percent of average assets during fiscal 1993 to a low of 0.28
percent of average assets during fiscal 1997. In light of the Association's
newly adopted strategy of retaining most fixed rate loan originations for
portfolio, the declining impact of loan sale gains on Ponchatoula Savings'
earnings is expected to continue. The loss of income from gains is expected
to be offset by an increase in interest income generated from growth of fixed
rate loans. The one time assessment to recapitalize the SAIF has been the
only significant non-recurring item to impact the Association's earnings in
recent years. Ponchatoula Savings' assessment was $284,000, equaling 0.49
percent of average assets during fiscal 1996.
INTEREST RATE RISK MANAGEMENT
The Association pursues a number of strategies to manage interest rate
risk, which have been fairly effective in limiting the repricing mismatch
between interest rate sensitive assets
<PAGE>
RP FINANCIAL, LC.
PAGE 1.14
and liabilities. As of December 31, 1997, the Net Portfolio Value ("NPV")
analysis provided by the OTS indicated that a 2.0 percent instantaneous and
sustained increase in interest rates would result in a 10.4 percent decline in
the Association's NPV (see Exhibit I-7). The Association's cumulative one
year gap-to-assets ratio equaled negative 3.8 percent as of December 31, 1997.
Ponchatoula Savings primarily manages interest rate risk from the asset
side of the balance sheet, most notably by emphasizing investing in
short-term and adjustable rate investment securities, which constitute the
major portion of the Association's interest-earning assets. Historically, the
Association has emphasized the origination of adjustable rate mortgage loans
and typically has sold fixed rate loan originations to the secondary market.
Ponchatoula Savings plans to offset the interest rate risk associated with
retaining fixed rate loans by funding those originations with long-term FHLB
advances. As of December 31, 1997, of the total loans and leases due after
December 31, 1998, adjustable and floating rate loans comprised 36.6 percent
of those loans and leases (see Exhibit I-8). The majority of the investments
held by the Association are classified as available for sale, and, thus,
could be readily sold if interest rate conditions warrant such action.
The infusion of stock proceeds will serve to further limit the
Association's interest rate risk exposure, as most of the net proceeds will
be redeployed into interest-earning assets and the increase to capital will
lessen the proportion of interest rate sensitive liabilities funding assets.
LENDING ACTIVITIES AND STRATEGY
The Association's lending activities have concentrated on the
origination of 1-4 family permanent mortgage loans (see Exhibits I-9 and
I-10, which reflect loan composition and lending activity, respectively). As
of December 31, 1997, 1-4 family permanent mortgage loans accounted for $20.1
million or 63.9 percent of Ponchatoula Savings' total loan and lease
portfolio. The Association's second and third largest category of loans were
consumer and construction loans, which totaled $7.2 million, or 22.8 percent,
and $3.2 million, or 10.3 percent, of total loans and leases outstanding,
respectively, at December 31, 1997. The balance of the loan and lease
portfolio was comprised of commercial real estate and land loans, and leases.
Exhibit I-11 provides the contractual maturity of the Association's loan and
lease portfolio, by loan and lease type, as of December 31, 1997.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.15
Ponchatoula Savings offers both fixed rate and adjustable rate 1-4
family loans, with fixed rate loans accounting for the substantial portion of
the Association's 1-4 lending volume in the current interest rate
environment. From 1990 through 1994 the Association's general philosophy was
to sell all fixed rate loan originations to the secondary market on a
servicing released basis. In 1995, the Association began to retain 15-year
fixed rate loan originations, which had interest rates of 8.0 percent or
higher and a LTV ratio of 70 percent or less. In February 1998, the
Association amended its lending policy to retain all fixed rate loan
originations with LTV ratios of 80 percent or less. Fixed rate loans offered
by the Association generally have terms of 15 or 30 years. The Association
offers a one-year ARM loans, which is indexed to the one-year Treasury bill
rate. Ponchatoula Savings generally does not offer discounted rates on ARM
loans. The substantial portion of 1-4 family loan originations are
underwritten to conform to FNMA/FHLMC requirements.
Construction loans originated by the Association consist substantially
of loans to finance the construction of 1-4 family residences. The
Association's construction lending activities are for the construction of
pre-sold homes, which convert to permanent loans upon completion of the
construction. Construction loans require payment of interest only during the
construction period, which is typically 12 months. For construction loans,
the Association will lend up to a maximum LTV ratio of 80.0 percent. Land
loans serve as a complement to the Association's 1-4 family lending
activities, as such loans are primarily secured by single-family lots. Terms
of land loans offered by the Association generally require a LTV ratio of
80.0 percent or less and have amortizations of up to 15 years. Most land
loans are extended as 5-year balloon loans.
The balance of the mortgage loan portfolio consists of commercial real
estate loans, which has been a fairly inactive area of lending
diversification for the Association. Commercial real estate loans held by the
Association are collateralized by properties in its normal lending territory.
Such loans are typically extended up to a LTV ratio of 80.0 percent, with
loan terms providing for up to 20-year amortizations. In light of the higher
credit risk associated with commercial real estate loans, loan rates offered
on those loans are at a premium to the Association's 1-4 family loan rates.
At December 31, 1997, Ponchatoula Savings' commercial real loan portfolio
totaled $521,000, or 1.6 percent, of total loans and leases outstanding, and
consisted of three loans which were secured by a health club, a church and a
retail establishment.
<PAGE>
RP FINANCIAL, LC.
PAGE 1.16
Diversification into non-mortgage lending has consisted of consumer
loans and has been the Association's primary area of lending diversification.
Home equity and home improvement loans comprise the largest concentration of
the consumer loan portfolio ($4.4 million out of $7.2 million as of December
31, 1997), consisting primarily of fixed rate loans with terms of up to 10
years. Home equity loans are extended up to a maximum LTV ratio of 80.0
percent of the combined balance of the home equity loan and the first lien.
The home equity portfolio also includes a limited amount of floating rate
lines credit, which has an interest rate tied to the Prime rate. Other
consumer loans held by the Association include direct automobile loans, loans
secured by savings accounts, mobile home loans and miscellaneous other
unsecured loans and loans secured by personal property. Consumer lending is a
desire growth area for the Association, with such growth expected to be
primarily realized in home equity types of lending.
Leases held by the Association were originated to facilitate the sale of
real estate owned. As of December 31, 1997, leases accounted for $301,000, or
1.0 percent, of total loans and leases outstanding. The leases receivable are
bond for deed contracts in which Ponchatoula Savings retains title to the
property until all payments are made on the contract, at which time the
Association transfers the title to the lessee. From the lessee's standpoint,
the lease receivable is very similar to a mortgage on the property, except
the title to the property is retained by Ponchatoula Savings during the term
of the lease. The advantage of the lease receivable to the Association is
that if the lessee defaults on the payments, Ponchatoula Savings does not
have to institute foreclosure proceedings on the property. The Association
has not originated any leases since 1995.
Exhibit I-10, which shows the Association's lending activities over the
past three fiscal years, highlights Ponchatoula Savings' lending emphasis on
1-4 family permanent mortgage loans and consumer loans. During the past three
fiscal years, originations of 1-4 family permanent mortgage loans and
consumer loans accounted for $37.7 million, or 70.9 percent, and $11.6
million, or 21.8 percent, of total loans originated, respectively.
Construction loan originations constituted the largest component of the
Association's remaining lending activities over the past three fiscal years,
with such originations amounting to $3.3 million or 6.2 percent of total
originations. Reflecting the Association's previous philosophy of selling all
30-year fixed rate loan originations, loans originated for sale comprised a
larger portion of the Association's 1-4 family lending volume than loans
originated for portfolio during each of the past three fiscal years.
Accordingly, the Association's recent change in philosophy to retain
<PAGE>
RP FINANCIAL, LC.
PAGE 1.17
most fixed rate loan originations for portfolio should facilitate stronger
loan growth than the slightly positive growth recorded in each of the past
three fiscal years. Ponchatoula Savings' lending strategy going forward is
expected to remain fairly consistent with recent historical trends, and,
thus, the origination of 1-4 family permanent mortgage loans and consumer
loans are expected to remain as the Association's most prominent lending
activities.
ASSET QUALITY
The Association's historical 1-4 family lending emphasis has generally
supported favorable credit quality measures. During the late-1980s and early
1990s, the Association experienced a deterioration in credit quality in
connection with the severe economic downturn that impacted the Association's
primary market area. Since the early-1990s, the Association's credit quality
has improved dramatically, which has been supported by a recovery in the
local economy and the implementation of more stringent collection procedures
by Ponchatoula Savings. From fiscal year end 1993 to fiscal year end 1997,
the Association's ratio of non-performing assets-to-assets declined from 3.09
percent to 0.29 percent. Non-performing assets held by the Association at
December 31, 1997 consisted of $173,000 of non-accruing loans. As shown in
Exhibit I-12, except for a nominal balance of consumer loans, the
Association's non-performing loans consisted entirely of 1-4 family permanent
mortgage loans.
The Association reviews and classifies assets on a regular basis, and
determines the adequacy of loan loss provisions accordingly. At December 31,
1997, the Association had $173,000 of loans classified as substandard. The
Association maintained valuation allowances of $265,000 at December 31, 1997,
equal to 0.94 percent of net loans and leases receivable and 153.2 percent of
non-performing assets.
FUNDING COMPOSITION AND STRATEGY
Deposits have consistently been the Association's primary source of
funds, and at December 31, 1997 deposits constituted 78.5 percent of
Ponchatoula Savings' interest-bearing liabilities. Exhibit I-13 sets forth
the Association's historical deposit composition and Exhibit I-14 provides
the interest rate and maturity composition of the CD portfolio at December
31, 1997. CD's represent the largest component of the Association's deposit
composition, with Ponchatoula Savings' current CD composition reflecting a
higher concentration of short-term CDs (maturities of one year or less). As
of December 31, 1997, the CD portfolio totaled
<PAGE>
RP FINANCIAL, LC.
PAGE 1.18
$31.4 million, or 74.6 percent, of total deposits, with 91.0 percent of those
CDs having maturities of one year or less. As of December 31, 1997, jumbo CDs
(CD accounts with balances of $100,000 or more) amounted to $4.1 million, or
13.2 percent, of total CDs. The Association does not hold any brokered CDs.
Deposit rates offered by the Association are generally in the middle of the
range of rates offered by local competitors.
Lower costing savings and transaction accounts comprise the balance of
the Association's deposit composition, with such deposits amounting to $10.7
million, or 25.4 percent, of total deposits at December 31, 1997. Over the
past three fiscal years, the Association's concentration of transaction and
savings accounts comprising total deposits has declined, with such deposits
amounting to 28.9 percent of total deposits at fiscal year end 1995. The
decline in the concentration of transaction and savings accounts comprising
total deposits was the result of shrinkage in the balance of transaction and
savings account deposits, as opposed to CD growth.
To support control of deposit costs, the Association has utilized
borrowings to a greater degree in recent years. Exhibit I-15 details the
Association's use of borrowings during the past three fiscal years. The
Association's borrowings totaled $11.5 million at December 31, 1997,
consisting entirely of short-term FHLB advances. In the current interest rate
environment, borrowings are expected to fund most of the Association's asset
growth. Such borrowings are expected to consist of FHLB advances. To limit
the interest rate risk associated with retaining 30-year fixed rate loans for
portfolio, the Association plans to fund such loans with long-term FHLB
advances.
LEGAL PROCEEDINGS
The Association is involved in routine legal proceedings occurring in
the ordinary course of business which, in the aggregate, are believed by
management to be immaterial to the financial condition of the Association.
<PAGE>
RP FINANCIAL, LC.
PAGE 2.1
II. MARKET AREA
INTRODUCTION
Ponchatoula Savings conducts operations out of its headquarters office
in the town of Ponchatoula and a single branch in Amite, both of which are
located in Tangipahoa Parish, Louisiana. Tangipahoa Parish is located in
southeast Louisiana between the northern shore of Lake Pontchartrain and the
southern border of Mississippi. Tangipahoa Parish is considered to be the
Association's primary market area for lending and deposits, particularly in
the areas surrounding Ponchatoula and Amite. To a lesser extent, the
Association serves customers in the adjacent parishes of St. Helena and
Livingston. Exhibit II-1 provides information on the Association's' office
facilities.
Ponchatoula Savings' market area can be characterized as a combination
of rural and suburban areas. The oil and chemical industries remain the
cornerstone of the regional economy, although following the severe downturn
experienced in the oil and chemical industries during the mid- and
late-1980s, the regional economy has become more diversified. Tangipahoa
Parish maintains a large commuter population in which residents commute to
jobs in the New Orleans and Baton Rouge metropolitan areas, with migration
from the larger metropolitan areas facilitating population growth in the
Association's primary market area. Despite operating in somewhat of a rural
market environment, competition for financial services in the Association's
primary market area is notable for the size of the population served.
Future business and growth opportunities will be partially influenced by
economic and demographic characteristics of the market served, particularly
the future growth and stability of the regional economy, demographic growth
trends, and the nature and intensity of the competitive environment for
financial institutions. These factors have been examined to help determine
the growth potential that exists for the Association and the relative
economic health of the Association's market area.
MARKET AREA DEMOGRAPHICS
Demographic growth in the Association's market area has been measured by
changes in population, number of households and median household income, with
trends in those areas summarized by the data presented in Table 2.1 Tangipahoa
Parish experienced positive
<PAGE>
RP FINANCIAL, LC.
PAGE 2.2
Table 2.1
Ponchatoula Homestead Savings, F.A.
Summary Demographic Data
<TABLE>
<CAPTION>
Year
----------------------------------- Growth Rate Growth Rate
Population (000) 1990 1997 2002 1990-97 1997-2002
- ---------------- ---- ---- ---- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
United States ........................... 248,710 267,805 281,209 1.1% 1.0%
Louisiana ............................... 4,220 4,369 4,477 0.5% 0.5%
Tangipahoa Parish ....................... 86 96 103 1.6% 1.4%
Households (000)
- ----------------
United States ........................... 91,947 99,020 104,001 1.1% 1.0%
Louisiana ............................... 1,499 1,572 1,627 0.7% 0.7%
Tangipahoa Parish ....................... 30 34 37 1.9% 1.7%
Median Household Income ($)
- ---------------------------
United States ........................... $29,199 $ 36,961 $ 42,042 3.4% 2.6%
Louisiana ............................... 22,777 26,577 29,688 2.2% 2.2%
Tangipahoa Parish ....................... 18,159 20,276 23,264 1.6% 2.8%
Per Capita Income - ($)
- -----------------------
United States ........................... $13,179 $ 18,100 -- 4.6% N/A
Louisiana ............................... 10,150 13,131 -- 3.7% N/A
Tangipahoa Parish ....................... 8,340 10,108 -- 2.8% N/A
1997 Age Distribution(%) 0-14 Years 15-24 Years 25-44 Years 45-64 Years 65+ Year Median Age
- ------------------------ ---------- ----------- ----------- ----------- -------- ----------
United States ........................... 21.7 13.6 31.4 20.5 12.7 34.8
Louisiana ............................... 23.7 15.2 30.0 19.7 11.4 32.8
Tangipahoa Parish ....................... 23.6 17.7 28.0 19.5 11.2 31.7
Less Than $15,000 to $25,000 to $50,000 to $100,000 to
1997 HH Income Dist.(%) $15,000 25,000 $ 50,000 $100,000 $150,000 $150,000+
- ----------------------- ---------- ----------- ----------- ----------- ----------- ---------
United States ........................... 17.7 14.4 33.5 26.5 5.4 2.6
Louisiana ............................... 29.4 17.4 31.5 17.6 2.7 1.4
Tangipahoa Parish ....................... 38.3 18.5 28.4 12.6 1.7 0.6
</TABLE>
Source: CACI.
<PAGE>
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PAGE 2.3
population growth during the 1990s, with the Parish exhibiting a higher
growth rate than comparable growth rates posted by Louisiana and the U.S.
Population growth has been supported by an influx of people exiting the Baton
Rouge and New Orleans markets, with Tangipahoa Parish's central location and
more affordable housing serving as attractive characteristics to individuals
seeking to re-locate outside of those larger and more urban markets.
Population growth for Tangipahoa Parish is projected to remain above the
comparative growth rates for Louisiana and the U.S. over the next five years
through 2002. Growth in the number of households paralleled population
growth, as Tangipahoa Parish recorded a higher rate of household growth from
1990 to 1997 compared to the Louisiana and U.S. household growth rates. The
increased demand for housing resulting from the population growth has had a
positive impact on real estate values in Tangipahoa Parish in recent years,
which is viewed as being favorable for the Association in terms of limiting
credit risk exposure as well as providing opportunities for loan growth.
Median household and per capita income levels in Tangipahoa Parish are
lower than the comparative medians for Louisiana and the U.S., which is
indicative of the market area's more rural nature that provides for a lower
cost of living than the more heavily populated markets within the state.
Household income distribution measures further imply the more rural and lower
cost of living characteristics of Tangipahoa Parish, as income distribution
measures for Tangipahoa Parish reflect a lower earning population compared to
Louisiana and U.S. In comparison to the U.S. and Louisiana, growth in
household income was lower for Tangipahoa Parish from 1990 to 1997. However,
reflecting the influence of the population growth occurring in Tangipahoa
Parish, household income growth for Tangipahoa Parish is projected to exceed
the comparative U.S. and Louisiana growth rates over the next five years. Age
distribution measures are also indicative of the growth occurring in
Tangipahoa Parish, as the age distribution of Tangipahoa Parish's population
reflects a comparatively younger population compared to Louisiana and the U.S.
NATIONAL ECONOMIC FACTORS
Over the past year, national economic growth has been mixed.
Inflationary pressures became more notable during March and April 1997, as
many of the first quarter economic indicators showed signs of a strengthening
economy. Most notably, during February, industrial production increased 0.5
percent, housing starts rose 12.2 percent and the sale of existing homes
jumped 9.0 percent. Accelerating economic growth was further indicated by a
<PAGE>
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PAGE 2.4
decline in the March unemployment rate to 5.2 percent, versus 5.3 percent for
February, and a higher than expected rise in the March "core" producer price
index, which posted its largest increase in 18 months. However, inflation
measures showed that the "Goldilocks Economy" remained in effect, based on
lower producer prices and a lower than expected increase in the employment
cost index. Some of the reasons cited for the low inflation were a larger
labor force, a measurable increase in productivity, and an increasingly
global economy. First quarter 1997 GDP growth was measured at 5.9 percent,
far exceeding analysts' projections.
Second quarter economic data generally reflected a less robust pace of
growth than maintained during the first quarter. Most notably, a lower than
anticipated National Association of Purchasing Managers index in April 1997
indicated a slowdown of expansion in the manufacturing sector. New home sales
also dropped by 7.7 percent in April 1997, the sharpest decline in six
months. Automobile sales for April and May declined from year earlier levels,
and discounting became more common by automakers. A rise in the June
unemployment rate and GDP growth slowing to an annual rate of 2.2 percent in
the second quarter, which was well below the revised 4.9 percent rate
recorded in the first quarter, further signaled that the economy was slowing
to a more sustainable pace.
Economic data released in August 1997 provided mixed signals of economic
growth, as a decline in the July unemployment rate and an unexpectedly sharp
decline in the U.S. trade deficit provided indications of a strengthening
economy. At the same time, a modest increase in the July consumer price index
and a decline in July wholesale prices suggested that inflation remained
non-threatening. At the end of August, the second quarter GDP was revised
upward to a 3.6 percent annual growth rate compared to a 2.2 percent original
estimate. In early-September, a slight increase in the August unemployment
rate did little to alleviate inflation concerns, as the employment data
indicated that the job market remained tight and wages continued to rise.
Comparatively, only a slight increase in the August consumer price index
provided evidence that inflation remained tame at the end of the third
quarter. September unemployment data served to further calm inflation fears
in early-October, as the unemployment rate was unchanged at 4.9 percent and
fewer jobs than expected were added to the economy.
At the beginning of the fourth quarter of 1997, inflation concerns
became more notable following congressional testimony by the Federal Reserve
Chairman, as he indicated that it would be difficult for the U.S. economy to
maintain the current balance between tight labor markets and low inflation.
However, economic data released in October and November
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PAGE 2.5
provided mixed signals on the strength of the economy. For example, a decline
in the October unemployment rate to a 24-year low of 4.7 percent indicated a
rapidly expanding economy, while, comparatively, a decline in October retail
sales suggested that the economy may be slowing. Economic growth was also
viewed as being contained by the upheaval in Asian markets, based on
expectations that international turmoil would result in a drop in demand for
U.S. exports. However, the threat of inflation was rekindled in
early-December on news of the November unemployment rate dropping to 4.6
percent, and the tight labor market pushed hourly wages higher. Economic data
released in mid-December provided for a more favorable inflation outlook, as
the increase in November retail sales was well below economists expectations
and producer prices declined in November.
Inflation concerns were further eased in early-January 1998 on news that
U.S. manufacturing growth slowed in December and predictions by economists of
slower growth for the U.S. economy in 1998. However, December 1997 employment
data indicated robust economic growth, despite a 0.1 percent increase in the
December unemployment rate to 4.7 percent, as a stronger than expected
370,000 jobs were added to the U.S. economy in December. The growing demand
for labor translated into higher than expected increase in labor costs during
the fourth quarter of 1997. A 0.5 percent increase in industrial production
for December 1997 and a 4.3 percent increase in the GDP for the fourth
quarter of 1997 further suggested that the financial troubles in Asia had not
diminished demand for U.S. exports by the end of 1997. At the end of January
1998, inflation concerns were diminished by the December durable goods orders
report, which showed only a slight increase after excluding the volatile
transportation sector. The January unemployment rate was unchanged at 4.7
percent, while the number of jobs added to the economy was higher than
expected. Other economic data released in February 1998 generally signaled a
stable economic environment. Retail sales were up 0.1 percent in January 1998
versus 0.3 percent in December 1997, while the consumer price index for
January was unchanged from December. At the end of February fourth quarter
GDP was revised downward to 3.9 percent, signaling a possible slowdown in
growth in the early part of 1998.
Economic data released in early-March 1998 provided mixed economic
signals, with a decline in the February unemployment rate to 4.6 percent
indicative of a robust U.S. economy. However, the February employment data
also reflected a decline in manufacturing jobs, which suggested that the
growth may not be sustainable. A decline in February producer prices and
plunging oil prices further eased inflation concerns in mid-March 1998.
However,
<PAGE>
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PAGE 2.6
the February CPI reflected an accelerating economy, after factoring out the
sharp decline in energy prices, indicating that competition from cheap Asian
imports hadn't yet forced many U.S. companies to lower prices.
Consistent with the mixed economic activity, interest rate trends have
been varied as well over the past year. After stabilizing briefly, the
strengthening economy and growing expectations of a rate increase by the
Federal Reserve propelled interest rates higher in late-March 1997. The
Federal Reserve increased short-term interest rates by 0.25 percent in
late-March, which was followed by a sharp sell-off in the bond market. For
the first time in six months, the rate on the 30-year benchmark bond moved
above 7.0 percent in late-March. Inflation concerns pushed interest rates
higher during the first half of April 1997, which was followed by a slight
decline in interest rates on rumors of a national budget accord. News of the
budget agreement and favorable inflation data sustained the rally in bond
prices through early-May. Interest rates stabilized in mid-May, as the
Federal Reserve opted not to raise interest rates at its May meeting. The
high level of consumer confidence indicated by the May reading caused the
30-year bond yield to edge above 7.0 percent again in late-May. However, the
increase was short-lived, as signs of slowing economic growth provided for a
lower interest rate environment during June.
The downward trend in interest rates became more pronounced during July
1997, following the Federal Reserve's decision to leave rate unchanged at its
early-July meeting and the release of new economic data that indicated
inflation was under control. Slower economic growth indicated by a second
quarter GDP growth rate of 2.2 percent sustained the rally in bond prices at
the end of July. However, in early-August, the stronger than expected job
growth reflected in the July employment data and a falling U.S. dollar
against the yen and mark caused bond prices to tumble. After recovering
briefly on the favorable inflation readings reflected in the July wholesale
and retail prices, bond prices declined in late-August on news of the
narrower than expected June trade deficit. Bond prices rallied briefly at the
end of August and in early-September, due to technical pressures and economic
data that showed manufacturing growth cooled in August. Interest rates
increased slightly in mid-September, reflecting investor fears that the
August economic data would show a strengthening economy and higher prices.
However, the low inflation reading indicated by the August consumer price
report ignited a bond market rally, with the yield on the 30-year bond
posting its second largest decline in the 1990s on September 16, 1997. Bond
prices approached their
<PAGE>
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PAGE 2.7
highest level in two years in early-October, reflecting the stable inflation
environment as confirmed by the September unemployment data.
In mid-October 1997, renewed inflation fears raised by the tight labor
markets and growing expectations of a rate hike by the Federal Reserve
provided for an easing in bond prices. The sell-off in the global markets at
the end of October served to abbreviate the decline in bond prices, as
skittish investors dumped stocks in favor of bonds. The Federal Reserve's
decision to leave interest rates unchanged at its mid-November meeting, along
with signs of slowing economic growth indicated by a decline in October
retail sales, served to strengthen the advance in bond prices in mid-November
as the yield on the bellwether 30-year U.S. Treasury bond approached 6.0
percent. Renewed interest in U.S. Treasury bonds by Japanese investors and
fading concerns of inflation provided for a stable bond market in
late-November. The rally in bond prices was not sustained in early-December,
as bond prices declined on news of the surprisingly strong jobs report for
November. However, positive inflation news indicated by the lower than
expected increase in November retail sales and the decline in November
producer prices, as well as world market turmoil, served to push the yield on
the 30-year U.S. Treasury bond below 6.0 percent in mid-December. Bond prices
were further boosted in mid-December by the Federal Reserve's decision to
leave interest rates unchanged at its mid-December meeting, while a flight to
quality caused by lingering concerns over the long-term stability of Asian
financial markets sustained the advance in the bond market in late-December.
Comments by the Federal Reserve Chairman of possible deflationary
pressures served to strengthen the bond market rally at the beginning of
1998. December 1997 economic data which generally showed a strong pace of
economic growth caused bond prices to retreat slightly in late-January 1998.
Bonds rallied briefly at the end of January, as the Federal Reserve indicated
that it would hold rates steady. In early-February, gains in the stock market
translated into a sell-off in bonds. However, despite the stronger than
expected employment report for January, bond prices edged higher following
the release of the employment data on the first Friday in February. The
positive trend in bond prices was sustained through mid-February, which was
supported by economic data which showed a slower pace of growth. Indications
by the Federal Reserve Chairman that the Federal Reserve would not cut rates
soon pushed interest rates slightly higher in late-February. However, the
downward revision to fourth quarter GDP boosted bond prices modestly at the
end of February.
<PAGE>
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PAGE 2.8
At the beginning of March 1998, signs of a strengthening U.S. economy
pushed the yield on the 30-year bond above 6.0 percent for the first time in
three months. However, the decline in bond prices was short-lived, as
declining oil prices and news of a 1.6 percent decline in February producer
prices served to edge the 30-year bond year back below 6.0 percent in
mid-March. As of March 20, 1998, one- and thirty-year U.S. Government bonds
were yielding 5.34 percent and 5.88 percent, respectively, versus comparative
year ago rates of 5.79 percent and 6.96 percent. Exhibit II-2 provides
historical interest rate trends from 1991 through March 20, 1998.
LOCAL ECONOMY
Tangipahoa Parish's local economy is reflective of an economy with a
large commuter population, with wholesale/retail trade, services and
government enterprises serving as the basis of the local economy. The oil and
chemical industries remain the cornerstone of the regional economy and
represent a primary area of employment for the commuting workforce. The
stability of the local economy is aided by the presence of the North Oaks
Medical Center and Southeastern Louisiana University, which are the second
and third largest employers in Tangipahoa Parish. The wholesale/retail
sector accounts for the largest number of jobs in Tangipahoa Parish, while
government and government enterprises represent the largest source of
earnings for individuals employed in Tangipahoa Parish. Demographic growth
has facilitated job growth in most sectors of the local economy, with
services, retail and government experiencing the strongest job growth in
Tangipahoa Parish. Table 2.2 provides a list of the largest employers in
Tangipahoa Parish.
Table 2.2
Major Employers in Tangipahoa Parish
<TABLE>
<CAPTION>
Product/ No. of
Employer Service Employees
-------- ------- ---------
<S> <C> <C>
Tangipahoa. Parish School System. Education 2,539
North Oaks Medical Center Medical 1,600
Southeastern Louisiana University Education 1,200
Louisiana Development Center/Hammond Education 1,100
Delchamps Distribution Center Food Wholesaler 600
Lallie Kemp Charity Hospital Medical 500
SUPERVALU Wholesale groceries 400
Wal-Mart Discount Retailer 368
Gulf Coast Plywood Wood Products 325
Sanderson Farms, Inc. Food Processing 300
</TABLE>
Sources: Louisiana Department of Economic Development.
<PAGE>
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PAGE 2.9
Comparative unemployment rates for Tangipahoa Parish, as well as for the
U.S. and Louisiana, are shown in Table 2.3. Tangipahoa Parish maintained a
higher unemployment rate than the comparative U.S. and Louisiana measures as
of December 1997, which tends to be a characteristic of rural markets in
general as the result of seasonal agricultural employment fluctuations.
Consistent with the U.S. and Louisiana, Tangipahoa Parish recorded a decline
in unemployment compared to a year ago.
Table 2.3
Market Area Unemployment Trends
<TABLE>
<CAPTION>
Region December 1996 December 1997
------ ------------- -------------
<S> <C> <C>
United States 5.0% 4.4%
Louisiana 6.1 5.3
Tangipahoa Parish 8.7 7.7
</TABLE>
Source: U.S. Bureau of Labor Statistics.
MARKET AREA DEPOSIT CHARACTERISTICS AND COMPETITION
Competition among financial institutions in the Association's market
area is significant, and, as larger institutions compete for market share to
achieve economies of scale, the market environment for the Association's
products and services is expected to become increasingly competitive in the
future. Smaller institutions such as Ponchatoula Savings will be forced to
either compete with larger institutions on pricing, or to identify and
operate in a "niche" that will allow for operating margins to be maintained
at profitable levels.
The Association's retail deposit base is closely tied to the economic
fortunes of Tangipahoa Parish and, in particular, the areas of the Parish
that are nearby to one of Ponchatoula Savings' two branches. Table 2.4
displays deposit market trends from June 30, 1995 through June 30, 1997 for
Tangipahoa Parish, as well as for the State of Louisiana. The data indicates
that deposit growth in the Association's primary market area was positive,
with commercial banks accounting for most of the growth. As of June 30, 1997,
Ponchatoula Savings maintained two out of the three thrift branches located
in Tangipahoa Parish.
Ponchatoula Savings' deposit balance increased at a 1.1 percent annual
rate from June 30, 1995 through June 30, 1997, versus a comparative growth
rate of 5.4 percent for total
<PAGE>
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PAGE 2.10
Table 2.4
Ponchatoula Homestead Savings, F.A.
Deposit Summary
<TABLE>
<CAPTION>
As of June 30,
----------------------------------------------------------------------
1995 1997
----------------------------------- -------------------------------- Deposit
Market Number of Market No. of Growth Rate
Deposits Share Branches Deposits Share Branches 1995-1997
-------- ----- -------- -------- ----- -------- -----------
(Dollars in Thousands) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
STATE OF LOUISIANA $39,655,265 100.0% 1,416 $42,634,771 100.0% 1,468 3.7%
Commercial Banks 35,640,178 89.9% 1,291 38,501,272 90.3% 1,332 3.9%
Savings Institutions 4,015,087 10.1% 125 4,133,499 9.7% 136 1.5%
TANGIPAHOA PARISH $599,086 100.0% 29 $664,986 100.0% 30 5.4%
Commercial Banks 531,351 88.7% 26 593,355 89.2% 27 5.7%
Savings Institutions 67,735 11.3% 3 71,631 10.8% 3 2.8%
Ponchatoula Savings (1) 43,136 63.7% 2 44,097 61.6% 2 1.1%
Ponchatoula Savings (2) 7.2% 6.6%
</TABLE>
(1) Percent of thrift deposits.
(2) Percent of total deposits.
Source: FDIC; OTS.
<PAGE>
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PAGE 2.11
bank and thrift deposits in Tangipahoa Parish. Accordingly, Ponchatoula
Savings' market share of Tangipahoa Parish deposits declined from 7.2
percent at June 30, 1995 to 6.6 percent at June 30, 1997. As a percent of
thrift deposits, the Association's market share of Tangipahoa Parish deposits
declined from 63.7 percent at June 30, 1995 to 61.6 percent at June 30, 1997.
The decline in market share of deposits reflects the Association's current
strategy of controlling deposit costs through offering competitive deposit
rates, which are generally lower than the top end of the range of rates
offered by the local competition. Accordingly, most of the Association's
recent growth has been funded with FHLB advances.
Future deposit growth may be enhanced by the infusion of the conversion
proceeds, as the additional capital will improve Ponchatoula Savings'
competitive position and leverage capacity. The Association should also
continue to benefit from its favorable image as a locally-owned and
community-oriented institution, as the trend of consolidation among financial
institutions is expected to provide Ponchatoula Savings with additional
opportunities to acquire customers that become available as the result of
community banks being acquired. However, given the competition faced by
Ponchatoula Savings, it will be difficult for the Association to realize
notable gains in deposit market share without paying above market rates for
deposits or further expanding the Association's branch network.
<PAGE>
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PAGE 3.1
III. PEER GROUP ANALYSIS
This chapter presents an analysis of Ponchatoula Savings' operations
versus a group of comparable savings institutions (the "Peer Group") selected
from the universe of all publicly-traded savings institutions. The basis of
the pro forma market valuation of Ponchatoula Savings is provided by these
institutions. Factors affecting the Association's pro forma value such as
financial condition, credit risk, interest rate risk, loan composition and
recent operating results can be readily assessed in relation to the Peer
Group. Current market pricing of the Peer Group, subject to appropriate
adjustments to account for differences between Ponchatoula Savings and the
Peer Group, will then be used as a basis for the pro forma valuation of
Ponchatoula Savings' to-be-issued common stock.
SELECTION OF PEER GROUP
We consider the appropriate Peer Group to be comprised of only those
publicly-traded savings institutions whose common stock is either listed on a
national exchange or is NASDAQ listed, since the market for companies trading
in this fashion is regular and reported. We believe non-listed institutions
are inappropriate since the trading activity for thinly-traded stocks is
typically highly irregular in terms of frequency and price and may not be a
reliable indicator of market value. We have also excluded from the Peer Group
those companies under acquisition, mutual holding companies and recent
conversions, since their pricing ratios are subject to distortion and/or do
not have a seasoned trading history. A recent listing of all publicly-traded
savings institutions is included as Exhibit III-1.
From the universe of publicly-traded thrifts, we selected ten
institutions with characteristics similar to those of Ponchatoula Savings. In
the selection process, two "screens" were applied to the universe of all
publicly-traded thrifts:
o Screen #1. Louisiana institutions with assets of $500 million or
less, equity-to-assets ratios of at least 8.0 percent, and positive
earnings. Three companies met the criteria for Screen #1 and all were
included in the Peer Group: Acadiana Bancshares, Inc., GS Financial
Corp., and Teche Holding Company. The only publicly-traded Louisiana
thrift not included in the Peer Group was Meritrust FSB of Thibodaux,
which was not considered for the Peer Group as the result of being
subject to an announced acquisition. Exhibit III-2 details the
financial characteristics of all publicly-traded Louisiana thrifts.
o Screen #2. Southeast and Southwest institutions with assets of less
than $300 million, equity-to-assets ratios of at least 8.0 percent,
positive core return on
<PAGE>
RP FINANCIAL, LC.
PAGE 3.1
average assets of less than 1.0 percent and non-performing
assets-to-assets ratios of less than 2.0 percent. Seven companies met
the criteria for Screen #2 and all were included in the Peer Group:
East Texas Financial Services of Texas, FirstFed Bancorp, Inc. of
Alabama, GFSB Bancorp, Inc. of Gallup New Mexico, South Street
Financial Corp. of North Carolina, SouthFirst Bancshares of Alabama,
Southern Banc Company of Alabama, and Twin City Bancorp, Inc. of
Tennessee. Exhibit III-3 details the financial characteristics of all
publicly-traded Southeast and Southwest thrifts.
Table 3.1 on the following page shows the general characteristics of
each of the Peer Group companies and Exhibit III-4 provides summary
demographic data for the primary market areas served by each of the Peer
Group companies. While there are some differences between the Peer Group
companies and Ponchatoula Savings, we believe that the Peer Group provides a
good representation of publicly-traded thrifts with operations comparable to
those of the Association and, thus, will provide a good basis for the
valuation. The following sections present a comparison of Ponchatoula
Savings' financial condition, income and expense trends, loan composition,
interest rate risk and credit risk versus the Peer Group. The conclusions
drawn from the comparative analysis are then factored into the valuation
analysis discussed in the final chapter.
A summary description of the key characteristics of each of the Peer
Group companies, which we determined warranted their inclusion as a
comparable institution to Ponchatoula Savings, is detailed below.
o Acadiana Bancshares, Inc. of LA. Selected due to Louisiana market area,
traditional thrift operating strategy, strong capital position,
similar funding composition, similar earnings contribution from sources
of non-interest operating income, high concentration of MBS and 1-4 family
permanent mortgage loans comprising MBS and loan portfolio, and favorable
credit quality measures.
o East Texas Fin. Serv. of TX. Selected due to traditional thrift operating
strategy, small asset size, comparable number of branches, strong capital
position, relatively low concentration of interest-earning assets
maintained in loans, comparable net interest margin, high concentration
of MBS and 1-4 family permanent mortgage loans comprising MBS and loan
portfolio, and favorable credit quality measures.
o FirstFed Bancorp, Inc. of AL. Selected due to traditional thrift operating
strategy, strong capital position, high concentration of MBS and 1-4
family permanent mortgage loans comprising MBS and loan portfolio, and
favorable credit quality measures.
o GFSB Bancorp, Inc. of Gallup NM. Selected due to traditional thrift
operating strategy, small asset size, relatively low concentration of
loans comprising interest-earnings assets, comparable net interest margin,
high concentration of MSB and 1-4
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- ---------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.1
Peer Group of Publicly-Traded Thrifts
March 31, 1998 (1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ --------------------------------- ------ ---------------- --------- ------ ------- ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TSH Teche Holding Company of LA AMEX Southern LA Thrift 409 9 09-30 04/95 21.75 75
ANA Acadiana Bancshares, Inc of LA AMEX Southern LA Thrift 274 S 5 12-31 07/96 22.13 60
SSFC South Street Fin. Corp. of NC (3) OTC South Central NC Thrift 228 2 09-30 10/96 12.38 58
FFDB FirstFed Bancorp, Inc. of AL OTC Central AL Thrift 179 8 03-31 11/91 23.75 27
SZB SouthFirst Bancshares of AL AMEX Central AL Thrift 165 2 09-30 02/95 22.00 21
GSLA GS Financial Corp. of LA OTC New Orleans LA Thrift 131 3 12-31 04/97 20.63 71
ETFS East Texas Fin. Serv. of TX OTC Northeast TX Thrift 120 2 09-30 01/95 22.50 23
GUPB GFSB Bancorp, Inc of Gallup NM OTC Northwest NM Thrift 115 1 06-30 06/95 22.00 18
TWIN Twin City Bancorp, Inc.. of TN OTC Northwest TN Thrift 109 3 12-31 01/95 14.75 19
SRN Southern Banc Company of AL AMEX Northeast AL Thrift 106 S 4 06-30 10/95 16.63 20
</TABLE>
NOTES (1) Or most recent date available (M-March, S=September,
D=December, J=June, E=Estimated, and P=Pro Forma)
(2) Operating strategies are: Thrift=Traditional Thrift,
M.B.=Mortgage Banker, R.E.=Real Estate Developer,
Div.=Diversified, and Ret. =Retail Banking.
(3) FDIC savings bank institution.
Source: Corporate offering circulars, data derived from information
published in SNL Securities Quarterly Thrift Report, and
financial reports of publicly-traded thrifts.
Date of Last Update: 03/31/98
<PAGE>
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PAGE 3.4
family permanent mortgage loans comprising MBS and loan portfolio, and
favorable credit quality measures.
o GS Financial Corp. of LA. Selected due to Louisiana market area,
traditional thrift operating strategy, comparable number of branches,
strong capital position, small asset size, relatively low concentration
of loans comprising interest-earning assets, and favorable credit quality
measures.
o South Street Fin. Corp. of NC. Selected due to traditional thrift
operating strategy, comparable number of branches, strong capital position,
relatively low concentration of loans comprising interest-earning assets,
comparable funding composition, high concentration of MBS and 1-4 family
permanent mortgage loans comprising MBS and loan portfolio, and favorable
credit quality measures.
o SouthFirst Bancshares of AL. Selected due to traditional thrift
operating strategy, comparable number of branches, small asset size,
similar funding composition, comparable return on average assets, and high
concentration of MBS and 1-4 family permanent mortgage loans comprising
MBS and loan portfolio.
o Southern Banc Company of AL. Selected due to traditional thrift operating
strategy, small asset size, strong capital position, relatively low
concentration of loans comprising interest-earning assets, similar return
on average assets, comparable net interest margin, and high concentration
of MBS and 1-4 family permanent mortgage loans comprising MBS and loan
portfolio.
o Teche Holding Company of LA. Selected due to Louisiana market area,
traditional thrift operating strategy, similar funding composition,
comparable level of operating expenses as a percent of average assets,
high concentration of MBS and 1-4 family permanent mortgage loans
comprising MBS and loan portfolio, and favorable credit quality measures.
o Twin City Bancorp, Inc. of TN. Selected due to traditional thrift
operating strategy, small asset size, comparable number of branches,
similar earnings contribution from non-interest operating income,
comparable level of operating expenses as a percent of average assets, and
favorable credit quality measures.
In aggregate, the Peer Group is more highly capitalized than the industry
average (16.73 percent of assets versus 13.61 percent for all publicly-traded
SAIF average), generates a slightly lower return on average assets (0.84
percent core ROAA versus 0.89 percent for the all SAIF average), and
generates a lower return on equity (5.29 percent core ROE versus 7.58 percent
for the all publicly-traded SAIF average). Overall, the Peer Group's average
P/B ratio and core P/E multiple were below and similar to the respective
comparable averages for all publicly-traded SAIF-insured thrifts.
<PAGE>
RP FINANCIAL, LC.
PAGE 3.5
<TABLE>
<CAPTION>
As of March 20, 1998
--------------------
Peer All SAIF
Group Insured
----- --------
<S> <C> <C>
Equity-to-Assets 16.73% 13.61%
Core Return on Assets ("ROA") 0.84 0.89
Core Return on Equity ("ROE") 5.29 7.58
Price-to-Book Ratio ("P/B") 133.22% 165.99%
Core Price-to-Earnings Multiple ("P/E") 21.55x 21.37x
Price-to-Assets Ratio ("P/A") 21.88% 21.04%
</TABLE>
Source: Table 4.4 - Chapter IV Valuation Analysis.
Ideally, the Peer Group companies would be comparable to Ponchatoula
Savings in terms of all of the selection criteria, but the universe of
publicly-traded thrifts does not provide for an appropriate number of such
companies. However, in general, the companies selected for the Peer Group
were fairly comparable to Ponchatoula Savings, as will be highlighted in the
following comparative analysis.
Financial Condition
- -------------------
Table 3.2 shows comparative balance sheet measures for Ponchatoula
Savings and the Peer Group, reflecting the expected similarities and some
differences given the selection procedures outlined above. The Association's
and the Peer Group's ratios reflect balances as of December 31, 1997, unless
otherwise indicated for the Peer Group companies. Ponchatoula Savings' net
worth base of 9.6 percent was below the Peer Group's average net worth
ratio of 16.7 percent. However, with the consummation of the conversion and
infusion of the net conversion proceeds, the Association will maintain an
equity-to-assets ratio that is comparable to or higher than the Peer Group's
ratio. All of Ponchatoula Savings' capital consisted of tangible capital,
while three of the Peer Group companies' capital included minor balances of
intangibles. The increase in Ponchatoula Savings' pro forma capital position
will be favorable from a risk perspective and in terms of future earnings
potential that could be realized through leverage and lower funding costs.
However, at the same time, the Association's higher pro forma capitalization
will likely result in a relatively low return on equity. Both the
Association's and the Peer Group's capital ratios reflected healthy capital
surpluses with respect to the regulatory capital requirements, with the Peer
Group's ratios currently indicating
<PAGE>
RP Financial, LC.
- ---------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.2
Balance Sheet Composition and Growth Rates
Comparable Institution Analysts
As of December 31, 1997
<TABLE>
<CAPTION>
Balance Sheet as a Percent of Assets
-----------------------------------------------------------------------------------------
Cash and Borrowed Subd. Net Goodwill Tng Net MEMO:
Investments Loans MBS Deposits Funds Debt Worth & Intang Worth Pref. Stock
----------- ----- ---- -------- -------- ----- ----- -------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings
- -------------------
December 31, 1997................... 7.5 49.5 41.2 70.7 19.3 0.0 9.6 0.0 9.6 0.0
SAIF-Insured Thrifts.................. 17.9 67.9 10.9 69.8 15.2 0.2 13.2 0.2 12.9 0.0
State of LA........................... 14.6 66.8 16.2 60.1 14.4 0.0 24.4 0.0 24.4 0.0
Comparable Group Average.............. 19.5 59.0 18.9 70.9 10.2 0.0 16.7 0.1 16.6 0.0
South-East Companies................ 19.5 60.7 17.1 72.3 8.0 0.0 17.2 0.1 17.0 0.0
South-West Companies................ 19.4 52.6 26.0 65.5 18.8 0.0 15.0 0.0 15.0 0.0
Comparable Group
- ----------------
South-East Companies
- --------------------
ANA Acadiana Bancshares, Inc of
LA(1)............................... 15.6 75.0 7.5 69.0 13.4 0.0 16.9 0.0 16.9 0.0
FFDB FirstFed Bancorp, Inc. of AL..... 21.5 67.4 7.2 89.7 0.0 0.0 9.7 0.8 8.9 0.0
GSLA GS Financial Corp. of LA......... 24.0 40.8 32.5 43.2 12.3 0.0 42.7 0.0 42.7 0.0
SSFC South Street Fin. Corp. of NC.... 36.6 49.3 12.4 62.6 9.2 0.0 14.9 0.0 14.9 0.0
SZB SouthFirst Bancshares of AL...... 23.6 60.7 12.0 78.9 10.7 0.0 9.7 0.2 9.4 0.0
SRN Southern Banc Company of AL (1).. 20.2 35.9 42.2 82.0 0.0 0.0 17.1 0.2 16.9 0.0
TSN Teche Holding Company of LA...... 4.3 84.7 8.7 68.1 17.6 0.0 13.5 0.0 13.5 0.0
TWIN Twin City Bancorp, Inc. of TN.... 10.4 71.5 14.0 84.9 0.9 0.0 12.9 0.0 12.9 0.0
South-West Companies
- --------------------
ETFS East Texas Fin. Serv. of TX...... 28.6 50.2 18.6 75.8 6.3 0.0 17.5 0.0 17.5 0.0
GUPB GFSB Bancorp, Inc of Gallup NM... 10.3 55.0 33.4 55.1 31.4 0.0 12.5 0.0 12.5 0.0
</TABLE>
<TABLE>
<CAPTION>
Balance Sheet Annual Growth Rates Regulatory Capital
-------------------------------------------------------------- -------------------------
Cash and Loans Borrows. Net Tng Net
Assets Investments & MBS Deposits & Subdebt Worth Worth Tangible Core Reg. Cap.
------ ----------- ----- -------- --------- ------ ------ -------- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings
- -------------------
December 31, 1997................... -1.83 4.79 -2.03 -5.21 7.48 5.36 5.36 9.68 9.68 23.69
SAIF-Insured Thrifts.................. 12.34 6.09 13.52 8.54 13.62 3.77 2.88 11.31 11.42 23.08
State of LA........................... 19.50 -9.10 32.85 -1.80 41.64 3.49 3.49 19.26 19.26 42.78
Comparable Group Average.............. 18.53 -1.12 22.47 2.54 -14.40 -2.28 -2.56 14.50 14.49 33.37
South-East Companies................ 17.39 -2.97 21.12 0.90 -14.40 -2.66 -3.01 14.45 14.45 32.60
South-West Companies................ 23.09 5.36 27.88 8.28 NM -0.96 -0.96 14.80 14.80 38.80
Comparable Group
- ----------------
South-East Companies
- --------------------
ANA Acadiana Bancshares, Inc of
LA(1)............................... 3.37 -6.93 5.86 -3.16 80.88 -0.19 -0.19 13.74 13.74 26.66
FFDB FirstFed Bancorp, Inc. of AL..... 1.30 32.70 -5.07 2.19 -100.00 -1.33 -0.85 8.91 8.91 17.01
GSLA GS Financial Corp. of LA......... 50.08 1.01 86.48 -7.49 NM NM NM 31.82 31.82 78.93
SSFC South Street Fin. Corp. of NC.... -0.01 -0.71 0.22 1.61 -16.00 -44.06 -44.06 NM 14.43 41.97
SZB SouthFirst Bancshares of AL...... 77.63 NM 66.92 NM 26.70 22.88 19.76 8.69 8.69 20.24
SRN Southern Banc Company of AL (1).. -1.59 -20.26 4.89 0.16 NM -7.74 -7.59 NM NM NM
TSN Teche Holding Company of LA...... 5.06 -21.37 6.20 5.25 2.41 7.17 7.17 12.21 12.21 22.76
TWIN Twin City Bancorp, Inc. of TN.... 3.25 -5.22 3.45 7.74 -80.39 4.68 4.68 11.33 11.33 20.61
South-West Companies
- --------------------
ETFS East Texas Fin. Serv. of TX.... 5.87 -7.72 12.20 -0.87 NM -0.51 -0.51 14.80 14.80 38.80
GUPB GFSB Bancorp, Inc of Gallup NM. 40.32 18.44 43.56 17.44 NM -1.42 -1.42 NM NM NM
- -----------------------
(1) Financial Information is for the quarter ending September 30, 1997.
</TABLE>
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The
information provided in this table has been obtained from sources we
believe are reliable, but we cannot guarantee the accuracy or
completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
PAGE 3.7
slightly greater capital surpluses. Again on a pro forma basis, the
Association's regulatory capital surpluses will be more comparable to the
Peer Group's ratios.
The interest-earning asset compositions for the Association and the Peer
Group were somewhat similar, with loans and mortgage-backed securities
constituting the bulk of interest-earning assets for both Ponchatoula Savings
and the Peer Group. Ponchatoula Savings' combined level of loans and
mortgage-backed securities was higher than the Peer Group's ratio (90.7
percent versus 77.9 percent for the Peer Group), with the Peer Group's higher
concentration of loans being more than offset by the Association's higher
concentration of mortgage-backed securities. Comparatively, the Peer Group's
cash and investments-to-assets ratio was higher than the comparable ratio for
the Association (19.5 percent versus 7.5 percent for the Association).
Overall, Ponchatoula Savings' interest-earning assets amounted to 98.2
percent of assets, which was slightly higher than the comparative Peer Group
ratio of 97.4 percent.
Ponchatoula Savings' funding liabilities reflect a funding strategy
similar to that of the Peer Group's funding composition. The Association's
deposits equaled 70.7 percent of assets, which approximated the Peer Group
average of 70.9 percent. Borrowings were utilized to a greater degree by
Ponchatoula Savings, as the Association and the Peer Group posted
borrowings-to-assets ratios of 19.3 percent and 10.2 percent, respectively.
Accordingly, the Peer Group was considered to have slightly greater borrowing
capacity than the Association. Total interest-bearing liabilities as a
percent of assets equaled 90.0 percent and 81.1 percent for the Association
and the Peer Group, respectively, with the Peer Group's lower ratio being
supported by maintenance of a higher capital position.
A key measure of balance sheet strength for a thrift institution is its
IEA/IBL ratio, Presently, the Association's IEA/IBL ratio is lower than the
Peer Group's ratio, based on respective ratios of 109.1 percent and 120.1
percent. The additional capital realized from stock proceeds should serve to
address the lower IEA/IBL ratio currently maintained by the Association, as
the interest free capital realized in Ponchatoula Savings' stock offering
will be primarily deployed into interest-earning assets.
The growth rate section of Table 3.2 shows annual growth rates for key
balance sheet items. Ponchatoula Savings' and the Peer Group's growth rates
were based on annual growth for the twelve months ended December 31, 1997,
unless otherwise indicated for the Peer Group Companies. Asset growth rates
of negative 1.8 percent and positive 18.5 percent were
<PAGE>
RP FINANCIAL, LC.
PAGE 3.8
posted by the Association and the Peer Group, respectively. Ponchatoula
Savings' asset shrinkage was attributable to a decline in mortgage-backed
securities, which was partially offset by loan growth and an increase in cash
and investments. The Peer Group's asset growth was realized through growth in
loans and mortgage-backed securities, which was partially negated by a
decline in cash and investments. Overall, the Peer Group's asset growth
measures would tend to support greater earnings growth relative to the
Association's measures. However, following the conversion, Ponchatoula
Savings' leverage capacity will be more comparable to or greater than the
Peer Group's. Future asset growth for the Association should also be aided by
a recent change in strategy, which provides for Ponchatoula Savings to retain
most fixed rate loan originations for its own portfolio. Historically, the
Association's philosophy has been to sell 30-year fixed rate loan
originations to the secondary market.
Borrowings and retained earnings funded a 5.2 percent decline in the
Association's deposits. The Peer Group's asset growth was funded by deposits
and borrowings, notwithstanding the negative borrowings growth rate shown for
the Peer Group average. The Peer Group's borrowings growth rate was
understated by the Peer Group companies with growth rates in excess of 100
percent, which accounted for three out of the four "NM" borrowing growth
rates shown for the Peer Group companies in Table 3.2. The other Peer Group
with "NM" indicated as a borrowings growth rate recorded no change in its
balance of borrowings for the twelve month period.
Capital growth rates of positive 5.4 percent and negative 2.3 percent were
posted by the Association and the Peer Group, respectively, with the Peer
Group's higher return on assets ratio being more than offset by maintenance
of a higher level of capital, dividend payments, and stock repurchases.
Ponchatoula Savings' positive capital growth rate resulted from earnings
being partially offset by dividend payments. Following the increase in
capital realized from conversion proceeds, the Association's capital growth
rate will be depressed by its higher pro forma capital position.
INCOME AND EXPENSE COMPONENTS
Ponchatoula Savings and the Peer Group reported net income to average
assets ratios of positive 0.53 percent and positive 0.87 percent,
respectively (see Table 3.3), based on earnings for the twelve months ended
December 31, 1997 or the most recent data available for some of the Peer
Group companies. The Association's and the Peer Group's earnings were fairly
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.3
Income as a Percent of Average Assets and Yields, Costs, Spreads
Comparable Institution Analysis
For the Twelve Months Ended December 31, 1997
<TABLE>
<CAPTION>
Net Interest Income Other Income
----------------------------- -----------------------
Loss NII Total
Net Provis. After Loan R.E. Other Other
Income Income Expense NII on IEA Provis. Fees Oper. Income Income
------ ------ ------- --- ------- ------- ---- ----- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings
- -------------------
December 31, 1997 .................... 0.53 7.12 4.22 2.90 -0.03 2.93 0.32 -0.05 0.03 0.30
SAIF-Insured Thrifts ................... 0.93 7.42 4.14 3.28 0.12 3.16 0.11 0.01 0.30 0.42
State of LA ............................ 1.11 7.30 3.57 3.73 0.07 3.66 0.04 0.02 0.34 0.39
Comparable Group Average ............... 0.87 7.32 3.93 3.39 0.08 3.31 0.09 0.03 0.27 0.40
South-East Companies ................. 0.90 7.36 3.87 3.49 0.09 3.40 0.10 0.04 0.32 0.46
South-West Companies ................. 0.76 7.13 4.17 2.96 0.03 2.93 0.07 0.00 0.06 0.13
Comparable Group
- ----------------
South-East Companies
- --------------------
ANA Acadiana Bancshares, Inc of LA(1)... 0.98 7.53 4.01 3.52 0.13 3.39 0.08 0.03 0.31 0.42
FFDB FirstFed Bancorp, Inc. of AL ...... 0.96 7.61 4.12 3.48 0.31 3.17 0.39 0.27 0.23 0.89
GSLA GS Financial Corp. of LA .......... 1.37 6.86 2.48 4.38 0.02 4.36 0.00 0.00 0.01 0.01
SSFC South Street Fin. Corp. of NC ..... 0.84 7.37 4.07 3.30 0.00 3.30 0.00 0.00 0.06 0.07
SZB SouthFirst Bancshares of AL ........ 0.57 7.25 3.77 3.47 0.04 3.43 0.00 0.00 1.06 1.06
SRN Southern Banc Company of AL(1) ..... 0.47 7.04 4.30 2.74 0.00 2.74 0.00 0.00 0.09 0.09
TSH Teche Holding Company of LA ........ 0.97 7.50 4.22 3.28 0.06 3.22 0.03 0.02 0.69 0.74
TWIN Twin City Bancorp, Inc. of TN ..... 1.01 7.76 4.00 3.76 0.15 3.60 0.30 0.03 0.09 0.42
South-West Companies
- --------------------
ETFS East Texas Fin. Serv. of TX ....... 0.63 6.92 3.96 2.95 0.00 2.95 0.14 0.00 0.06 0.19
GUPB GFSB Bancorp, Inc of Gallup NM .... 0.89 7.33 4.37 2.96 0.05 2.91 0.00 0.00 0.06 0.06
<CAPTION>
G&A/Other Exp. Non-Op. Items Yields, Costs, and Spreads
------------------ -------------- -----------------------------
MEMO: MEMO:
G&A Goodwill Net Extrao. Yield Cost Yld-Cost Assets/ Effective
Expense Amort. Gains Items On Assets Of Funds Spread FTE Emp. Tax Rate
------- -------- ----- ------- --------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings
- -------------------
December 31, 1997 .................... 2.67 0.00 0.28 0.00 7.36 4.71 2.65 2,837 36.93
SAIF-Insured Thrifts ................... 2.19 0.02 0.08 0.00 7.71 4.88 2.83 4,413 36.86
State of LA ............................ 2.37 0.00 0.05 0.00 7.47 4.59 2.88 3,240 35.45
Comparable Group Average ............... 2.36 0.01 0.04 0.00 7.51 4.84 2.68 3,732 36.91
South-East Companies ................. 2.46 0.01 0.05 0.00 7.58 4.79 2.79 3,350 37.68
South-West Companies ................. 1.95 0.00 0.04 0.00 7.26 5.04 2.22 5,258 33.85
Comparable Group
- ----------------
South-East Companies
- --------------------
ANA Acadiana Bancshares, Inc of LA(1)... 2.35 0.00 0.05 0.00 7.66 4.90 2.76 3,262 34.62
FFDB FirstFed Bancorp, Inc. of AL ...... 2.38 0.06 0.00 0.00 7.93 4.61 3.32 2,669 33.45
GSLA GS Financial Corp. of LA .......... 2.21 0.00 0.04 0.00 7.10 3.95 3.15 3,982 37.45
SSFC South Street Fin. Corp. of NC ..... 1.96 0.00 -0.04 0.00 7.49 5.58 1.91 6,175 46.87
SZB SouthFirst Bancshares of AL ........ 3.56 0.00 -0.01 0.00 7.56 4.42 3.14 2,468 38.32
SRN Southern Banc Company of AL(1) ..... 2.04 0.05 0.00 0.00 7.17 5.24 1.93 3,792 36.90
TSH Teche Holding Company of LA ........ 2.56 0.00 0.07 0.00 7.66 4.92 2.74 2,476 34.28
TWIN Twin City Bancorp, Inc. of TN ..... 2.61 0.00 0.27 0.00 8.04 4.68 3.37 1,976 39.54
South-West Companies
- --------------------
ETFS East Texas Fin. Serv. of TX ....... 2.24 0.00 0.07 0.00 7.09 4.90 2.19 4,141 35.40
GUPB GFSB Bancorp, Inc of Gallup NM .... 1.66 0.00 0.00 0.00 7.43 5.18 2.26 6,375 32.29
</TABLE>
(1) Financial information is for the quarter ending September 30, 1997.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
PAGE 3.10
representative of their core earnings. In terms of core earnings measures,
the Peer Group maintained a higher net interest margin and a lower level of
operating expenses than the comparative ratios for the Association.
Likewise, non-interest operating income also represented a slight earnings
advantage for the Peer Group. Loan loss provisions had a larger impact on
the Peer Group's earnings, while gains were a more significant contributor to
the Association's earnings.
The Peer Group's more favorable net interest income ratio resulted from
both a higher interest income ratio and a lower interest expense ratio. The
Peer Group's higher interest income ratio was supported by a higher yield
earned on interest-earning assets (7.51 percent versus 7.36 percent for the
Association), which was consistent with the Peer Group's high concentration
of loans comprising interest-earning assets. Comparatively, the Peer Group's
lower interest expense ratio was realized through maintaining a lower level
of interest-bearing liabilities, as the Association maintained a lower cost
of funds than the Peer Group (4.71 percent versus 4.88 percent for the Peer
Group). Following the infusion of conversion proceeds, the level of
interest-bearing liabilities maintained by the Association should be more
comparable to the peer Group's ratio. Overall, Ponchatoula Savings and the
Peer Group reported net interest income to average assets ratios of 2.90
percent and 3.39 percent, respectively.
In another key area of core earnings strength, the Association and the
Peer Group reported operating expense to average assets ratios of 2.67
percent and 2.37 percent, respectively. Ponchatoula Savings' higher
operating expense ratio can in part be explained by the relatively high
number of employees maintained for its asset size, as indicated by assets per
full time equivalent employee measures of $2.8 million and $3.7 million for
the Association and the Peer Group, respectively. The Association's lower
ratio can in part be explained by its historical philosophy of selling longer
term fixed rate loans to the secondary, which results in expenses to
originate and the sell the loans without accompanying asset growth. Asset
shrinkage during fiscal 1997 also served to place upward pressure on
Ponchatoula Savings' operating expense ratio. On a post-offering basis, the
Association's operating expenses can be expected to increase with the
addition of the stock benefit plans, with such expenses already impacting the
Peer Group's operating expenses. At the same time, Ponchatoula Savings'
capacity to leverage operating expenses will be greater following the
increase in capital realized from conversion proceeds.
<PAGE>
RP FINANCIAL, LC.
PAGE 3.11
When viewed together, net interest income and operating expenses provide
considerable insight into a thrift's earnings strength, since those sources
of income and expenses are typically the most prominent components of
earnings and are generally more predictable than losses and gains realized
from the sale of assets or other non-recurring activities. In this regard,
as measured by their expense coverage ratios (net interest margin divided by
the operating expense ratio), the Peer Group's earnings strength was more
favorable than the Association's. Expense coverage ratios posted by
ponchatoula Savings and the Peer Group equaled 1.09x and 1.43x, respectively.
An expense coverage ratio of greater than 1.0x indicates that an institution
is able to sustain pre-tax profitability without having to rely on
non-interest sources of income.
Sources of non-interest operating income were a slightly larger
contributor to the Peer Group's earnings, with such income amounting to 0.30
percent and 0.40 percent of Ponchatoula Savings' and the Peer Group's average
assets, respectively. Net of real estate operations income, which tends to
be a relatively less stable source of non-interest operating income, the
Association and the Peer Group maintained comparable levels of non-interest
operating income. The portion of the Association's and the Peer Group's
earnings realized from non-interest operating income is consistent with their
traditional thrift operating strategies, which typically provides for limited
diversification into services that generate non-interest operating income.
Loan loss provisions established by the Association and the Peer Group
were reflective of favorable credit quality measures and low risk operating
strategies, as Ponchatoula Savings recorded a recovery on loan loss provision
equal to 0.03 percent of average assets and loan loss provisions established
by the Peer Group amounted to 0.08 percent of average assets.
Net gains were a larger contributor to the Association's earnings,
amounting to 0.28 percent and 0.04 percent of Ponchatoula Savings' and the
Peer Group's average assets, respectively. Gains and losses resulting from
the sale of loans and investments are generally viewed as being non-recurring
in nature, given that they are highly dependent upon interest rate movements
and typically do not represent a core earnings activity for a thrift.
However, the gains recorded by the Association were realized from loan sale
gains, which historically has been a component of Ponchatoula Savings'
recurring earnings and, thus, warrant consideration in evaluating the
Association's core earnings strength. However, going forward, such gains are
expected to be notable lower, in light of the Association's recent change in
strategy to retain most fixed rate loan originations for its portfolio.
Accordingly, it is the
<PAGE>
RP FINANCIAL, LC.
PAGE 3.12
Association's intention to offset the loss of income realized from gains with
growth in interest income earned on the fixed rate loans retained for
portfolio. Extraordinary items were not a factor in either the Association's
or the Peer Group's earnings.
Both the Association and the Peer Group exhibited effective tax rates
which indicated earnings were being fully taxed, with Ponchatoula Savings
and the Peer Group exhibiting comparable effective tax rates of 36.93 percent
and 36.91 percent, respectively. Overall, the Association's and the Peer
Group's reported earnings were considered to be fairly representative of
their core earnings.
LOAN COMPOSITION
Table 3.4 presents data related to the loan composition of Ponchatoula
Savings and the Peer Group. An emphasis on low risk residential lending was
apparent in both the Association's and the Peer Group's loan compositions,
with 1-4 family permanent mortgage loans and mortgage-backed securities
accounting for 80.1 percent and 84.2 percent of the Association's and the
Peer Group's loan and MBS portfolios, respectively. The Peer Group's higher
ratio was attributable to its higher concentration of 1-4 family permanent
mortgage loans, which was largely offset by the Association's higher
concentration of mortgage-backed securities. Ponchatoula Savings, general
philosophy of selling loans on a servicing released basis translated in a
minimal balance of loans serviced for others, versus a comparative balance of
$11.1 million for the Peer Group average. Two of the Peer Group companies
with loans serviced for others portfolios maintained a modest amount of
servicing intangibles.
As indicated by the similar percentage of 1-4 family loans and
mortgage-backed securities maintained by Ponchatoula Savings and the Peer
Group, the degree of lending diversification exhibited by the Association and
the Peer Group was also comparable. Ponchatoula Savings' lending
diversification consisted substantially of consumer loans (12.8 percent of
loans and MBS), followed by construction/land loans (6.0 percent of loans and
MBS). Comparatively, the Peer Group's primary area of lending
diversification consisted of commercial business loans (6.4 percent of loans
and MBS), followed by construction/land loans (5.9 percent of loans and MBS).
Commercial real estate/multi-family loans represented a minor area of lending
diversification for Ponchatoula Savings, while such loans comprised 4.8
percent of the Peer Group's loans and MBS. The Peer Group's diversification
into consumer loans was fairly limited. The comparable degree of
diversification into higher risk
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.4
Loan Portfolio Composition and Related Information
Comparable Institution Analysis
As of December 31, 1997
<TABLE>
<CAPTION>
Portfolio Composition as a Percent of MBS and Loans
---------------------------------------------------
1-4 Constr. 5+Unit Commerc. RWA/ Serviced Servicing
Institution MBS Family & Land Comm RE Business Consumer Assets For Others Assets
- ----------- ----- ------ ------ ------- -------- -------- ------ ---------- ---------
(%) (%) (%) (%) (%) (%) (%) ($000) ($000)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings ...................... 43.84 36.30 5.99 1.07 0.00 12.81 42.64 91 0
SAIF-Insured Thrifts ..................... 14.91 62.76 5.54 11.24 6.05 1.67 52.58 368,320 3,338
State of LA .............................. 10.47 75.29 3.80 4.79 6.51 1.17 47.46 7,045 0
Comparable Group Average ................. 22.89 61.28 5.94 4.80 6.38 0.99 43.41 11,095 79
Comparable Group
- ----------------
ANA Acadiana Bancshares, Inc of LA(1)... 11.77 68.00 2.88 6.70 8.58 2.35 51.16 21,136 0
ETFS East Texas Fin. Serv. of TX ........ 34.32 58.27 2.55 5.58 1.37 0.00 38.85 29,203 157
FFDB FirstFed Bancorp, Inc. of AL ....... NA NA NA NA NA NA 56.08 728 0
GUPB GFSB Bancorp, Inc of Gallup NM ..... 41.55 40.69 3.67 11.23 2.43 2.44 36.21 0 0
GSLA GS Financial Corp. of LA ........... NA NA NA NA NA NA 34.69 0 0
SSFC South Street Fin. Corp. of NC ...... 4.72 82.93 4.08 7.70 0.25 0.00 35.98 428 0
SZB SouthFirst Bancshares of AL ........ 8.92 69.03 25.70 0.06 4.76 0.64 44.87 0 0
SRN Southern Banc Company of AL(1) ..... 59.97 36.49 0.00 0.28 3.19 0.08 24.15 0 0
TSH Teche Holding Company of LA ........ 9.18 82.57 4.72 2.87 4.43 0.00 56.52 0 0
TWIN Twin City Bancorp, Inc. of TN ...... 12.69 52.27 3.91 3.99 26.03 2.38 55.58 59,455 635
</TABLE>
(1) Financial information is for the quarter ending September 30, 1997.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
PAGE 3.14
types of lending provided for similar risk weighted assets-to-assets ratios
of 42.6 percent and 43.4 percent for Ponchatoula Savings and the Peer Group,
respectively. Overall, both the Association's and the Peer Group's risk
weighted assets ratios were indicative of relatively low risk operating
strategies, as both ratios were lower than the all publicly-traded
SAIF-insured average of 52.6 percent.
INTEREST RATE RISK
Table 3.5 reflects various key ratios highlighting the relative interest
rate risk exposure of the Association versus the Peer Group companies.
In terms of balance sheet composition, Ponchatoula Savings' interest rate risk
characteristics were considered to be less favorable than the Peer Group's.
In particular, Ponchatoula Savings' lower capital position and lower IEA/IBL
ratios indicate a greater dependence on the yield-cost spread to sustain the
net interest margin. However, Ponchatoula Savings' lower level of
non-interest earning assets was a positive consideration in terms of capacity
to generate interest income. On a pro forma basis, the infusion of stock
proceeds should serve to increase the Association's equity-to-assets ratio
and IEA/IBL ratio to levels that are more comparable to the comparative Peer
Group ratios.
To analyze interest rate risk associated with the net interest margin,
we reviewed quarterly changes in net interest income as a percent of average
assets for Ponchatoula Savings and the Peer Group. In general, the relative
fluctuations in the Association's net interest income to average assets ratios
were more significant than exhibited by the comparative Peer Group ratios,
indicating a greater degree of interest rate risk associated with Ponchatoula
Savings' net interest margin. However, the stability of the Association's net
interest margin should be enhanced by the infusion of stock proceeds, as
interest-rate sensitive liabilities will be funding a lower portion of
Ponchatoula Savings' assets.
CREDIT RISK
Overall, Ponchatoula Savings' credit risk exposure appeared to be
comparable to the Peer Group's, with both the Association's and the Peer
Group's credit quality measure being representative of limited credit risk
exposure. As shown in Table 3.6, Ponchatoula Savings' ratio of non-performing
assets- (REO, non-accruing loans and accruing loans more than 90 days past
due) to-assets was lower than Peer Group's ratio (0.29 percent versus 0.50
percent for the Peer Group). Comparatively, Ponchatoula Savings'
non-performing loans-to-loans
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.5
Interest Rate Risk Measures and Net Interest Income Volatility
Comparable Institution Analysis
As of December 31, 1997 or Most Recent Date Available
<TABLE>
<CAPTION>
Balance Sheet Measures
------------------------
Non-Earn. Quarterly Change in Net Interest Income
Equity/ IEA/ Assets/ ----------------------------------------------------------
Institution Assets IBL Assets 12/31/97 09/30/97 06/30/97 03/31/97 12/31/96 09/30/96
- ----------- ------ ------ ------ -------- -------- -------- -------- -------- --------
(%) (%) (%) (change in net interest income is annualized in basis points)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings ....................... 9.6 109.1 1.8 11 -9 33 -28 10 NA
SAIF-Insured Thrifts ...................... 12.9 114.5 3.3 -4 -4 1 1 1 3
State of LA ............................... 24.4 136.1 2.3 -16 6 27 -8 6 36
Comparable Group Average .................. 16.6 122.4 2.6 3 -7 9 -6 10 3
Market Interest Rates
- ---------------------
1 Year Treasury Bill ...................... -- -- -- 4 -22 -34 51 -20 1
30 Year Treasury Bond ..................... -- -- -- -48 -38 -32 46 -28 5
Comparable Group
- ----------------
ANA Acadiana Bancshares, Inc of LA(1) ... 16.9 119.1 2.0 NA -14 2 10 19 73
ETFS East Texas Fin. Serv. of TX ......... 17.5 118.6 2.6 -10 -5 -5 -1 5 -5
FFDB FirstFed Bancorp, Inc. of AL ........ 8.9 107.2 3.8 -12 -5 18 -9 13 NA
GUPB GFSB Bancorp, Inc of Gallup NM ...... 12.5 114.0 1.3 -13 -20 3 -16 -27 27
GSLA GS Financial Corp. of LA ............ 42.7 175.1 2.8 -24 31 84 -33 NA NA
SSFC South Street Fin. Corp. of NC ....... 14.9 137.1 1.6 43 -46 -21 13 77 -35
SZB SouthFirst Bancshares of AL ......... 9.4 107.4 3.8 59 -23 13 -4 10 -5
SRN Southern Banc Company of AL(1) ...... 16.9 119.8 1.7 NA 8 -17 -6 1 -12
TSH Teche Holding Company of LA ......... 13.5 114.1 2.2 -8 -0 -5 -2 -8 -1
TWIN Twin City Bancorp, Inc. of TN ....... 12.9 111.7 4.1 -11 2 18 -15 1 -21
</TABLE>
(1) Financial information is for the quarter ending September 30, 1997.
NA=Change is greater than 100 basis points during the quarter.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.6
Credit Risk Measures and Related Information
Comparable Institution Analysis
As of December 31, 1997 or Most Recent Date Available
<TABLE>
<CAPTION>
NPAs & Rsrves/
REO/ 90+Del/ NPLs/ Rsrves/ Rsrves/ NPAs & Net Loan NLCs/
Institution Assets Assets Loans Loans NPLs 90+Del Chargoffs Loans
- ----------- ------ ------ ----- ------- ------- ------- --------- -------
(%) (%) (%) (%) (%) (%) ($000) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings......................... 0.00 0.29 0.62 0.94 153.18 153.18 1 0.00
SAIF-Insured Thrifts........................ 0.26 0.74 0.79 0.78 185.48 130.13 340 0.11
State of LA................................. 0.02 0.34 0.52 1.02 221.49 221.10 23 -0.02
Comparable Group Average.................... 0.06 0.50 0.53 0.65 156.13 132.98 18 0.05
Comparable Group
- ----------------
ANA Acadiana Bancshares, Inc of LA(1)..... 0.05 0.50 0.59 1.32 223.09 201.03 54 -0.07
ETFS East Texas Fin. Serv. of TX........... 0.00 0.33 0.66 0.45 68.42 68.42 0 0.00
FFDB FirstFed Bancorp, Inc. of AL.......... 0.36 1.42 0.92 0.95 103.21 45.57 28 0.09
GUPB GFSB Bancorp, Inc of Gallup NM........ 0.00 0.24 0.44 0.58 132.26 132.26 5 0.03
GSLA GS Financial Corp. of LA.............. 0.00 0.13 NA 0.76 NA 246.99 0 0.00
SSFC South Street Fin. Corp. of NC......... 0.01 0.16 0.30 0.38 124.71 118.51 0 0.00
SZB SouthFirst Bancshares of AL........... 0.08 1.28 0.35 0.78 221.35 37.22 0 0.00
SRN Southern Banc Company of AL(1)........ 0.00 NA NA 0.19 NA NA 0 0.00
TSH Teche Holding Company of LA........... 0.01 0.38 0.44 0.97 219.88 215.27 15 0.02
TWIN Twin City Bancorp, Inc. of TN......... 0.08 0.09 NA 0.16 NA 131.58 81 0.42
</TABLE>
(1) Financial information is for the quarter ending September 30, 1997.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
PAGE 3.17
ratio was higher than the Peer Group's ratio (0.62 percent versus 0.53
percent for the Peer Group). Loss reserve ratios were also similar for the
Association and the Peer Group, with Ponchatoula Savings maintaining higher
levels of loss reserves as a percent of non-performing assets (153.2 percent
versus 133.0 percent of the Peer Group) and as percent of loans (0.94 percent
versus 0.65 percent for the Peer Group). Net loan charge-offs were not a
material factor for either the Association or the Peer Group during the
period covered in Table 3.6.
SUMMARY
Based on the above analysis and the criteria employed by RP Financial in
the selection of the companies for the Peer Group, RP Financial concluded
that the Peer Group forms a reasonable basis for determining the pro forma
market value of Ponchatoula Savings. Such general characteristics as asset
size, capital position, interest-earning asset composition, funding
composition, core earnings strength, credit quality, interest rate risk and
loan composition all tend to support the reasonability of the Peer Group from
a financial standpoint.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.1
IV. VALUATION ANALYSIS
INTRODUCTION
This chapter presents the valuation analysis, prepared pursuant to the
regulatory valuation guidelines, and valuation adjustments and assumptions
used to determine the estimated pro forma market value of the common stock to
be issued in conjunction with the Association's conversion transaction.
APPRAISAL GUIDELINES
The OTS appraisal guidelines, most recently amended in written form in
October 1994, specify the methodology for estimating the pro forma market
value of an institution pursuant to the mutual-to-stock conversion. The
valuation methodology provides for: (1) the selection of a peer group of
comparable publicly-traded institutions, excluding recently converted
institutions, and institutions subject to acquisition or in MHC form; (2) a
financial and operational comparison of the subject company to the selected
peer group, identifying key differences and similarities; and (3) a valuation
analysis in which the pro forma market value of the subject company is
determined based on the market pricing of the peer group as of the date of
valuation, incorporating valuation adjustments for key differences. In
addition, the pricing characteristics of recent conversions, both at
conversion and in the aftermarket, must be considered.
RP FINANCIAL APPROACH TO THE VALUATION
RP Financial's valuation analysis complies with the above-referenced
appraisal guidelines. Accordingly, the valuation incorporates a detailed
analysis based on the Peer Group discussed in Chapter III, incorporating
"fundamental analysis" techniques. Additionally, the valuation incorporates a
"technical analysis" of recently completed stock conversions, including
closing pricing and aftermarket trading of such conversions. It should be
noted that such analyses cannot possibly fully account for all the market
forces which impact trading activity and pricing characteristics of a
particular stock on a given day.
The pro forma market value determined herein is a preliminary value for
the to-be-issued stock. Throughout the conversion process, RP Financial will:
(1) review changes in
<PAGE>
RP FINANCIAL, LC.
PAGE 4.2
the Association's operations and financial condition; (2) monitor the
Association's operations and financial condition relative to the Peer group
to identify any fundamental changes; (3) monitor the external factors
affecting value including, but not limited to, local and national economic
conditions, interest rates, and the stock market environment, including the
market for thrift stocks; and (4) monitor pending conversion offerings
(including those in the offering phase) both regionally and nationally. If
material changes should occur during the conversion process, RP Financial
will prepare updated valuation reports reflecting such changes and their
related impact on value, if any, over the course of the conversion process.
RP Financial will also prepare a final valuation update at the closing of the
conversion offering to determine if the preliminary range of value continues
to be appropriate.
The appraised value determined herein is based on the current market and
operating environment for the Association and for all thrifts. Subsequent
changes in the local and national economy, the legislative and regulatory
environment, the stock market, interest rates, and other external forces
(such as natural disasters or major world events), which may occur from time
to time (often with great unpredictability) may materially impact the market
value of all thrift stocks, including the Association, or the Association's
value alone. To the extent a change in factors impacting the Association's
value can be reasonably anticipated and/or quantified, RP Financial has
incorporated the estimated impact into our analysis.
VALUATION ANALYSIS
A fundamental analysis discussing similarities and differences relative
to the Peer Group was presented in Chapter III. The following sections
summarize the key differences between the Association and the Peer Group and
how those differences affect the pro forma valuation. Emphasis is placed on
the specific strengths and weaknesses of the Association relative to the Peer
Group in such key areas as financial condition, profitability, growth and
viability of earnings, asset growth, primary market area, dividends,
liquidity of the issue, marketing of the issue, management, and the effect of
government regulations and/or regulatory reform. We have also considered the
market for thrift stocks, and in particular new issues, to assess the impact
on value of the Association coming to market at this time.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.3
1. FINANCIAL CONDITION
The financial condition of an institution is an important determinant in
pro forma market value, because investors typically look to such factors as
liquidity, capital, asset composition and quality, and funding sources in
assessing investment attractiveness. The similarities and differences in the
Association's and the Peer Group's financial strengths are noted as follows:
- OVERALL A/L COMPOSITION. Residential assets, including 1-4 family
permanent mortgage loans and MBS, funded by retail deposits were the
primary components of both Ponchatoula Savings' and the Peer Group's
balance sheets. The Peer Group's interest-earning asset composition
exhibited higher concentrations of loans and cash and investments,
which was offset by the Association's higher concentration of
mortgage-backed securities. Diversification into higher risk types of
loans was comparable for the Association and the Peer Group. Overall,
the Peer Group's interest-earning composition was more favorable in
terms of yield potential. Both the Association's and the Peer Group's
credit risk exposure were considered to be fairly limited, as
indicated by relatively low risk weighted assets-to-assets ratios and
generally favorable credit quality measures. The interest rate risk
characteristics associated with Ponchatoula Savings' balance sheet
are currently considered to be less favorable than the Peer Group's;
however, the infusion of stock proceeds is expected to provide the
Association with equity-to-assets and IEA/IBL ratios that are at
least as strong as the Peer Group's ratios. There were no material
differences in Ponchatoula Savings' and the Peer Group's funding
compositions, with retail deposits meeting the major portion of their
respective funding needs. Borrowings were utilized to a greater
degree by the Association, although both the Association and the Peer
Group maintained ample borrowing capacities. For valuation purposes,
RP Financial concluded no adjustment was warranted for the
Association's asset/liability composition.
- CREDIT QUALITY. Both the Association's and the Peer Group's credit
quality measures were indicative of limited credit risk exposure. The
Association and the Peer Group exhibited similar credit quality
measures in terms of NPAs to assets (0.29 percent versus 0.50 percent
for the Peer Group) and reserves maintained as a percent of NPAs
(153.2 percent versus 133.0 percent for the Peer Group). Risk
weighted assets-to-assets ratios further implied comparability of
credit risk exposure for the Association and the Peer Group, with
both the Association and the Peer Group maintaining ratios that were
below the average for all publicly-traded SAIF-insured thrifts.
Overall, the credit risk exposure associated with Ponchatoula
Savings' and the Peer Group's balance sheets was viewed as being
limited and, thus, RP Financial concluded no adjustment was warranted
for the Association's credit quality.
- BALANCE SHEET LIQUIDITY. The Association's asset composition reflected
a higher concentration of investment securities and a lower
concentration of loans compared to the Peer Group, thereby indicating
a potentially greater degree of liquidity for the Association on the
asset size of the balance sheet. Borrowings were utilized to a
slightly greater degree by the Association, which suggests that
<PAGE>
RP FINANCIAL, LC.
PAGE 4.4
the Association's future borrowing capacity is less than the Peer
Group's. The infusion of conversion proceeds will serve to increase
the Association's balance sheet liquidity, as the proceeds will
initially be deployed into short-term investments. Overall, RP
Financial concluded no adjustment was warranted for balance sheet
liquidity.
- FUNDING LIABILITIES. Retail deposits served as the primary
interest-bearing source of funds for the Association and the Peer
Group, with borrowings being utilized to a slightly greater degree by
the Association. Notwithstanding the Association's greater
utilization of borrowings, Ponchatoula Savings' cost of funds was
slightly lower than the Peer Group's. Overall, Ponchatoula Savings
currently maintains a higher level of interest-bearing liabilities
than the Peer Group (90.0 percent of assets versus 81.1 percent for
the Peer Group), which was attributable to Ponchatoula Savings' lower
capital position. Following the stock offering, the increase in the
Association's capital position should serve to provide Ponchatoula
Savings with a comparable or lower level of interest-bearing
liabilities than maintained by the Peer Group. For purposes of the
valuation, RP Financial concluded that no adjustment was warranted
for Ponchatoula Savings' funding composition.
- CAPITAL. The Association operates with a lower pre-conversion capital
ratio than the Peer Group, 9.6 percent and 16.7 percent of assets,
respectively. This disadvantage will be addressed by the stock
offering, which will provide Ponchatoula Savings with a pro forma
capital position that can be expected to be comparable to or higher
than the Peer Group's equity-to-assets ratio. Accordingly, RP
Financial concluded that no adjustment was warranted for the
Associations's capital position.
On balance, the characteristics of the Association's and the Peer Group's
financial conditions were not materially different in most respects for
valuation purposes. Accordingly, we concluded that no valuation adjustment
was warranted for the Association's financial strength.
2. PROFITABILITY, GROWTH AND VIABILITY OF EARNINGS
Earnings are an important factor in determining pro forma market value,
as the level and risk characteristics of an institution's earnings stream and
the prospects and ability to generate future earnings are typically heavily
factored into an investment decision. The historical income statements of
Ponchatoula Savings and the Peer Group were generally reflective of
traditional thrift operating strategies, with net interest income and
operating expenses being the major determinants of their respective earnings.
The specific factors considered in the valuation include:
- REPORTED EARNINGS. The Association recorded lower earnings on a ROAA
basis (0.53 percent versus 0.87 percent for the Peer Group). The Peer
Group's more
<PAGE>
RP FINANCIAL, LC.
PAGE 4.5
favorable reported earnings resulted primarily from maintenance of a
stronger net interest margin and a lower level of operating
expenses. To a lesser extent, a larger earnings contribution realized
from non-interest operating income supported the higher return posted
by the Peer Group. Lower loss provisions and higher gains represented
earnings advantages for the Association. Reinvestment of conversion
proceeds into interest-earning assets will serve to increase the
Association's earnings, with the benefit of reinvesting proceeds
expected to be partially offset by higher operating expenses
associated with operating as a fully converted publicly-traded company
and the implementation of the stock benefit plans. Overall, the
differences between the Association's and the Peer Group's reported
earnings were considered to be representative of the Peer Group's
superior earnings strength and, thus, Poncharoula Savings' lower
reported earnings warranted a moderate downward adjustment for
valuation purposes.
- CORE EARNINGS. Both the Association's and the Peer Group's earnings
were derived largely from recurring sources, including net interest
income, operating expenses, and non-interest operating income. In
these measures, the Peer Group operated with a stronger net interest
margin, a lower operating expense ratio and a slightly higher level
of non-interest operating income. The Peer Group's stronger net
interest margin and lower level of operating expenses translated into
a higher expense coverage ratio (1.43x versus 1.09x for the
Association). Loss provisions had a slightly larger impact on the
Peer Group's earnings, although both the Association's and the Peer
Group's earnings were viewed as having limited credit risk exposure.
Typically, gains generated from the sale of loans and investments are
viewed as earnings with a relatively high degree of volatility, and,
thus, are substantially discounted in the evaluation of an
institution's core earnings. In the case of Ponchatoula Savings, the
gains provided by the sale of loans warrant some consideration as a
core earnings factor, since such gains have consistently been a
contributor to the Association's earnings in recent years as the
result of the Association's philosophy of selling fixed rate loans to
the secondary market on a servicing released basis. Going forward
such gains are expected to diminish, in light of the Association's
current philosophy of retaining most fixed rate loan originations for
portfolio. Accordingly, the loss of income realized from the gains is
expected to offset by additional interest income generated by loan
growth. However, even when giving credit to the gains realized from
mortgage loan sales, Ponchatoula Savings' core earnings were lower
than the Peer Group's. Overall, these measures, as well as the
expected earnings benefits the Association should realize from the
redeployment of conversion proceeds into interest-earning assets,
which will be partially offset by expenses associated with the stock
benefit plans and operating as a fully converted publicly-traded
company, indicate that the Association's core earnings are not as
strong as the Peer Group's and a moderate downward adjustment was
warranted for the Association's core earnings.
- INTEREST RATE RISK. Quarterly changes in the Association's and the
Peer Group's net interest income to average assets ratios indicated a
slightly greater degree of interest rate risk exposure in the
Association's net interest margin. Other measures of interest rate
risk, such as capital ratios, IEA/IBL ratios, and the level of
non-interest earning assets-to-total assets were generally more
favorable for the Peer Group, although the Association maintained a
lower level of non-
<PAGE>
RP FINANCIAL, LC.
PAGE 4.6
interest earning assets as compared to the Peer Group's ratio. On a
pro forma basis, the infusion of stock proceeds can be expected to
address the Association's lower capital position and lower IEA/IBL
ratio, as well as enhance the stability of the Association's net
interest margin through the reinvestment of stock proceeds into
interest-earning assets. Accordingly, RP Financial concluded that the
interest rate risk associated with the Association's earnings was
comparable to the Peer Group's, and no adjustment was warranted for
valuation purposes.
- CREDIT RISK. Loan loss provisions were a slightly larger factor in
the Peer Group's earnings, as the Association recorded a modest
recovery to loan loss provisions during the twelve months ended
December 31, 1997. In terms of future exposure to credit quality
related losses, the Association's and the Peer Group's credit
quality measures indicated relatively limited credit risk exposure.
Lending diversification into higher risk types of lending was similar
for the Association and the Peer Group, which translated into
comparable risk weighted assets-to-assets ratios. Both the
Association's and the Peer Group's risk weighted assets-to-assets
ratios were below the average for all publicly-traded SAIF-insured
thrifts and, thus, indicated relatively low credit risk operating
strategies. Likewise, credit quality measures, such as level of
non-performing assets and reserve coverage ratios, were indicative of
limited credit risk exposure for both the Association's and the Peer
Group's earnings. Accordingly, RP Financial concluded that no
adjustment was warranted for this factor.
- EARNINGS GROWTH POTENTIAL. Several factors were considered in
assessing earnings growth potential. First, the Peer Group's historical
growth has been stronger than the Association's, as Ponchatoula
Savings recorded asset shrinkage during the twelve months ended
December 31, 1997. Second, the infusion of stock proceeds will
increase the Association's earnings growth potential with respect to
leverage capacity, as the Association's pro forma equity-to-assets
ratio is expected to be at least as high as the Peer Group's ratio.
Lastly, as shown in Exhibit III-4, opportunities for lending growth in
the market area where the Association maintains its largest presence
(Tangipahoa Parish) is not considered to be materially different than
the primary market areas served by the Peer Group companies, with
the more populous markets served by the Peer Group companies on
average being somewhat offset by the stronger population growth being
recorded in Ponchatoula Savings' primary market area. On balance, the
Association's earnings growth potential was considered to be less
favorable than the Peer Group's, based on Ponchatoula Savings' lower
growth historically. Accordingly, RP Financial concluded a slight
downward adjustment was warranted for this factor.
- RETURN ON EQUITY. The Association's return on equity will be lower
than the averages for the Peer Group and the thrift industry as a
whole. In view of the Association's expected more limited capital
growth rate, it is anticipated that the market will consider the
Association's stock to be less attractive until the Association can
demonstrate its ability to profitably leverage its equity in a
prudent manner. Therefore, RP Financial concluded that a slight downward
adjustment was warranted for the Association's ROE.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.7
Overall, Ponchatoula Savings' earnings characteristics were considered to
be less favorable than the Peer Group's. Accordingly, RP Financial concluded
that a moderate downward valuation adjustment was warranted for
profitability, growth and viability of the Association's earnings relative to
the Peer Group's.
3. ASSET GROWTH
Ponchatoula Savings exhibited a lower asset growth rate than the Peer
Group, during the period covered in our comparative analysis (negative 1.8
percent versus positive 18.5 percent for the Peer Group). The Association's
pro forma capital position will provide for a comparable capacity to leverage
relative to the Peer Group's equity-to-assets ratio, although it is viewed as
being somewhat negated by the more limited growth recorded by Ponchatoula
Savings historically and the Association's relatively limited resources to
support stronger future growth. However, the Association's future asset
growth should be enhanced by its change in strategy to retain most fixed rate
loan originations, although such growth is expected to be largely funded by
relatively higher costing FHLB advances. On balance, we concluded a slight
downward adjustment was warranted for this factor.
4. PRIMARY MARKET AREA
The general condition of a financial institution's market area has an
impact on value, as future success is in part dependent upon opportunities
for profitable activities in the local market area. A diversified and stable
economy has supported relatively favorable demographic measures for the
Association's primary market area, as indicated by healthy population and
household growth rates. Growth of the market area has been aided by an influx
of people exiting nearby urban markets, such as Baton Rouge and New Orleans,
in search of more affordable housing and the type of lifestyle provided by
Tangipahoa Parish's more rural market. Overall, a stable local economy and
favorable demographic growth are viewed as being positive market area
characteristics with respect to limiting credit risk exposure and supporting
growth opportunities. At the same time, the population based served by the
Association is relatively small and, thus, the population growth in absolute
numbers is not viewed as representing a major source of potential growth for
the Association.
In general, the Peer Group companies operate in similarly size markets as
the Association, although, on average, the markets served by the Peer Group
companies are larger
<PAGE>
RP FINANCIAL, LC
PAGE 4.8
than Tangipahoa Parish. Population growth rates in the markets served by the
Peer Group companies were on average less favorable than the primary market
area served by the Association. On average, the Association maintained a
smaller deposit market share than the Peer Group companies, indicating a
competitive advantage for the Peer Group in terms of the degree of
competition faced for deposits. Summary demographic and deposit market share
data for the Association and the Peer Group companies is provided in Exhibit
III-4. As shown in Table 4.1, December 1997 unemployment rates in the markets
served by the Peer Group companies were generally lower than in Tangipahoa
Parish, an indication of more rural market area served by the Association.
Overall, the competitive, economic, and demographic characteristics of the
markets served by the Peer Group companies and the Association were not
viewed as being materially different in terms of growth potential and credit
risk exposure. Therefore, we concluded no adjustment was appropriate for the
Association's market area.
Table 4.1
Market Area Unemployment Rates
Ponchatoula Savings and the Peer Group Companies (1)
<TABLE>
<CAPTION>
Dec. 1997
County Unemployment
-------- --------------
<S> <C> <C>
Ponchatoula Savings - LA Tangipahoa 7.7%
The Peer Group
- --------------
Acadiana Bancshares, Inc. - LA Lafayette 4.2%
East Texas Fin. Serv. - TX Smith 6.2
FirstFed Bancorp, Inc. - AL Jefferson 2.9
GFSB Bancorp, Inc. - NM McKinley 9.4
GS Financial Corp. - LA Jefferson 4.0
South Street Fin. Corp. - NC Stanly 4.4
SouthFirst Bancshares - AL Talladega 5.2
Southern Banc Company - AL Etowah 4.0
Teche Holding Company - LA St. Mary 6.2
Twin City Bancorp - TN Sullivan 3.9
</TABLE>
(1) Unemployment rates are not seasonally adjusted.
Source: U.S. Bureau of Labor Statistics.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.9
5. DIVIDENDS
The Holding Company has indicated its intentions to pay an annual cash
dividend. At this time, the Association has indicated that the annual
dividend payment will approximate $0.20, which would provide for a yield of
2.0 percent based on the initial offering price of $10.00 per share, and a pro
forma payout ratio of approximately 50 percent at the midpoint of the
valuation range. However, future declarations of dividends by the Board of
Directors will depend upon a number of factors, including investment
opportunities available to the Holding Company or the Association, capital
requirements, regulatory limitations, the Holding Company's and the
Association's financial condition and results of operations, tax
considerations and general economic conditions.
Historically, thrifts typically have not established dividend policies at
the time of their conversion to stock ownership. Newly converted
institutions, in general, have preferred to gain market seasoning, establish
an earnings track record and fully invest the conversion proceeds before
establishing a dividend policy. However, during the late-1980s and
early-1990s, with negative publicity surrounding the thrift industry, there
was a tendency for more thrifts to initiate moderate dividend policies
concurrent with their conversion as a means of increasing the attractiveness
of the stock offering. Today, fewer institutions are compelled to initially
establish dividend policies at the time of their conversion offering to
increase the attractiveness of the stock issue as (1) industry profitability
has improved, (2) the number of problem thrift institutions has declined, and
(3) the stock market cycle for thrift stocks is generally more favorable than
in the early-1990s. At the same time, with ROE ratios under pressure, due to
high equity levels, well-capitalized institutions are subject to increased
competitive pressures to offer dividends.
As publicly-traded thrifts' capital levels and profitability have
improved and as weakened institutions have been resolved, the proportion of
institutions with cash dividend policies has increased. All ten of the
institutions in the Peer Group presently pay regular cash dividends, with
implied dividend yields ranging from 0.89 percent to 3.23 percent. The
average dividend yield on the stocks of the Peer Group institutions was 2.12
percent as of March 20, 1998, representing an average earnings payout ratio
of 44.24 percent. As of March 20, 1998, approximately 84 percent of all
publicly-traded SAIF-insured thrifts had adopted cash dividend policies (see
Exhibit IV-1), exhibiting an average yield of 1.82 percent and an average
payout ratio of 36.19 percent. The dividend paying thrifts generally maintain
higher than average profitability ratios, facilitating their ability to pay
cash dividends.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.10
The Holding Company's indicated dividend yield is similar to the Peer
Group's average dividend yield. From a capital perspective, the Association's
dividend paying capacity will be comparable to the Peer Group's; however,
from an earnings perspective, the Association's dividend paying capacity will
be less than the Peer Group's. In particular, the Association's payout ratio
of 49.95 percent at the midpoint was above the Peer Group's payout ratio of
44.24 percent. At the top of the super range, the Association's payout ratio
equaled 59.01 percent. Accordingly, a slight downward adjustment has been
applied for this factor.
6. LIQUIDITY OF THE SHARES
The Peer Group is by definition composed of companies that are traded in
the public markets, all of which trade on the NASDAQ. Typically, the number
of shares outstanding and market capitalization provides an indication of how
much liquidity there will be in a particular stock. The market capitalization
of the Peer Group companies ranged from $17.6 million to $74.8 million as of
March 20, 1998, with an average market value of $39.2 million. The shares
outstanding of the Peer Group members ranged from 801,000 to 4.7 million,
with average shares outstanding of approximately 2.0 million. The
Association's conversion offering will result in a market value and shares
outstanding that will be less than the Peer Group averages. Accordingly, we
anticipate that there will be a less liquid and efficient trading market for
the Association's stock. However, the Association's stock is expected to
qualify for a listing as a NASDAQ Small-Cap Issue, which will provide for a
certain degree of liquidity in the stock. Overall, we concluded a slight
downward adjustment was warranted for this factor.
7. MARKETING OF THE ISSUE
We believe that four separate markets exists for thrift stocks coming to
market such as Ponchatoula Savings': (1) the after-market for public
companies, in which trading activity is regular and investment decisions are
made based upon financial condition, earnings, capital, ROE and dividends;
(2) the new issue market in which converting thrifts are evaluated on the
basis of the same factors but on a pro forma basis without the benefit of a
stock trading history and reporting quarterly operating results as a
publicly-held company; (3) the acquisition market for thrift franchises in
Louisiana; and (4) the market for the public stock of Ponchatoula Savings. All
of these markets were considered in the valuation of the Association's
to-be-issued stock.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.11
A. THE PUBLIC MARKET
The value of publicly-traded thrift stocks is easily measurable, and
is tracked by most investment houses and related organizations. Exhibit IV-1
provides pricing and financial data on all publicly-traded thrifts. In
general, thrift stock values react to market stimuli such as interest rates,
inflation, perceived industry health, projected rates of economic growth,
regulatory issues and stock market conditions in general. Exhibit IV-2
displays historical stock market trends for various indices and includes
historical stock price index values for thrifts and commercial banks.
Exhibit IV-3 displays historical stock price indices for thrifts only.
In terms of assessing general stock market conditions, the stock
market has generally trended higher over the past year. Unease over higher
interest rates, profitability concerns in the technology sector and
litigation concerns for tobacco stocks pulled the stock market lower in
mid-March 1997. As expected, the Federal Reserve increased the rate on
short-term funds by 0.25 percent at its late-March meeting. Following the
rate increase, the sell-off in the stock market became more severe amid
further signs of an accelerating economy. Stocks bottomed-out on news of a
stronger than expected rise in core producer prices for March, with the DJIA
closing at 6391.69 on April 11, 1997, or 9.8 percent below the all-time high
recorded a month ago.
Some favorable first quarter earnings reports and news of a possible
settlement by tobacco companies to resolve the threat of liability lawsuits
provided for a modest recovery in the stock market in mid-April 1997. In
late-April, the release of economic data which indicated mild inflationary
pressures furthered the rally in bond and stock prices. News of a budget
agreement and a favorable ruling for tobacco companies sent the stock market
soaring to record highs in early-May. Mixed economic data and the Federal
Reserve's decision to leave its target for the federal funds rate unchanged
at its May meeting sustained a positive trend in the stock market through the
end of May. Profit worries caused a sell-off in technology stocks in
early-June, while declining interest rates served to stabilize the broader
market. Technology stocks rallied the stock market to new highs in mid-July,
as a number of technology companies posted favorable second quarter earnings.
Favorable inflation data, including second quarter GDP growth slowing to an
annual rate of 2.2 percent, versus 4.9 percent in the first quarter, and
comments by the Federal Reserve Chairman which indicated that an increase in
interest rates was not imminent, spurred bond and stock prices strongly
higher during the second half of July.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.12
A decline in the July 1997 unemployment rate reversed the positive bond
and stock market trends in early-August, as inflation concerns became more
prominent. A declining dollar against the yen and mark sharpened the decline
in bond prices, with the 30-year U.S. Treasury bond yield increasing from 6.32
percent at the end of July to 6.66 percent as of August 8, 1997. The sell-off
in bonds pulled stock prices lower as well. While bond prices firmed in
mid-August, notable volatility was evident in the stock market. The DJIA
moved at least 100 points for five consecutive days from August 18, 1997
through August 21, 1997, which set a record for volatility. Profit worries
among some of the large blue chip companies and mixed inflation ratings were
factors contributing to the roller-coaster performance of the stock market.
Despite strengthening bond prices, stocks traded lower through the end of
August. Bond prices moved higher on inflation data which showed that prices
stayed low during the second quarter, even though second quarter GDP growth
was revised upward to an annual rate of 3.6 percent compared to an original
estimate of 2.2 percent.
Volatility returned to the stock market in early-September, with the DJIA
posting a record breaking point increase of 257.36 on September 2, 1997. The
rally was sparked by economic data that indicated manufacturing growth slowed
in August, thereby easing investors' inflation worries. However, the rally
was not sustained, as the DJIA pulled back following the one day rally. The
pull back was largely attributed to profit worries, which more than offset
favorable inflation news indicated by a slight increase in the national
unemployment rate for August (4.9 percent in August versus 4.8 percent in
July). Stocks fluctuated in a narrow trading range in mid-September, in
anticipation of third quarter earnings and August economic data. The low
inflation reading indicated by the August consumer price index sent stock and
bond prices sharply higher on September 16, 1997, with the DJIA posting a 175
point increase and the yield on the 30-year U.S. Treasury bond posting its
second largest decline in the 1990s. Uncertainty over third quarter earnings
provided for a mixed stock market performance towards the end of September,
while generally favorable inflation readings pushed interest rates to their
lowest level in two years. The release of September employment data on
October 3, 1997 caused bond and stock prices to soar in early trading
activity, as the September unemployment rate was unchanged at 4.9 percent and
fewer jobs than expected were added to the economy during September. However,
most of the initial gains were erased by news of rising tensions between Iraq
and Iran.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.13
Congressional testimony by the Federal Reserve Chairman, in which he
indicated that it would be difficult to maintain the current balance between
tight labor markets and low inflation, caused stock and bond prices to skid
in mid-October 1997. Disappointing third quarter earnings in the technology
sector sharpened the sell-off in the stock market, with the Dow Jones
Industrial Average ("DJIA") posting consecutive losses of more than 1.0
percent on October 16 and 17. Stocks bounced back in early-week trading the
following week, reflecting positive third quarter earnings surprises posted
by some of the blue chip stocks. However, the recovery was abbreviated by
global selling pressure, which was led by the decline in the Hong Kong stock
market, as the DJIA posted a two-day loss approximating 320 points on October
23 and 24, 1997. The sell-off in the world financial markets turned into a
rout on the following Monday, with a 5.8 percent decline in the Hong Kong
stock market fueling the largest ever point decline in the DJIA. On October
24, the DJIA declined 554 points or 7.2 percent. While the selling was broad
based, technology stocks sensitive to Asian demand experienced some of the
sharpest declines. The turmoil in the stock market provided for a sharp rally
in U.S. Treasury bonds, reflecting a flight to quality by skittish investors.
The stock market recovered strongly the day after the record breaking point
decline, as the DJIA surged a record breaking 337 points on October 28.
Comparatively, bond prices declined sharply on October 28, as investors
pulled out of the Treasury market to reinvest into the stock market.
Market conditions remained uneven through the week ended October 31, 1997,
which was followed by a soaring stock market on November 3, 1997. The DJIA
posted a 232 point increase on November 3, 1997. The DJIA posted a 232 point
increase on November 3, which was supported by a resurgence in the Hong Kong
market. Following the one day rally, volatility returned to the stock market
through mid-November. The market's uneven performance was largely
attributable to the ongoing influence of the international markets,
particularly the Asian and Latin American markets. In mid-November, the yield
on the 30-year bellwether Treasury issue approached 6.0 percent, its lowest
level since February 1996. Advances in the bond market provided for a
generally positive stock market environment in the second half of November,
with bank and technology issues being among the strongest performers. Renewed
confidence that the Asian governments would control the region's financial
problems furthered the stock market rally in early-December. Despite a
sell-off in the bond market caused by the November unemployment rate dropping
to its lowest level since October 1973, the DJIA showed surprising strength
and closed almost 99 points higher on December 5, 1997. Stocks declined the
following week, as earnings concerns, particularly in the technology sector,
overshadowed a rally in the bond
<PAGE>
RP FINANCIAL LC.
PAGE 4.14
market. Positive inflation news and world market turmoil caused investors to
dump stocks in favor of bonds, which served to push the yield on the
bellwether 30-year Treasury bond below 6.0 percent in mid-December. Bond
prices were also boosted by the Federal Reserve's decision to leave interest
rates unchanged at its mid-December meeting, which also provided for a modest
recovery in the stock market. In late-December, investors dumped stocks on
earnings concerns, while a flight to quality pushed bond prices higher. The
stock market surged higher at year end, as worries about South Korea's
financial crisis eased.
Led by a rally in the bond market, stocks continued to move higher at
the beginning of 1998. However, turmoil in the Asian markets and the
uncertain outlook for fourth quarter earnings provided for an uneven stock
market through most of January and into early-February. For example, the Dow
Jones Industrial Average ("DJIA") plunged 222 points on January 9, 1998, due
to fourth quarter profit worries and economic turmoil in Southeast Asia.
Comparatively, a rally in the Asian markets propelled the DJIA 201 points
higher on February 2, 1998. In general, a rebound in the Asian markets and
favorable fourth quarter earnings served to the push the stock market higher
during the second half of January and into early-February. In contrast, bond
prices edged lower over the same time period, as the labor market remained
tight as indicated by a sharp increase in labor costs during the fourth
quarter of 1997 and a larger than expected increase in the number of jobs
added during December 1997.
Strength primarily in technology stocks pushed the DJIA to a new record
high for the first time in six months on February 10, 1998. The rally was
sustained through mid-February, as the DJIA established six consecutive new
highs through February 18, 1998. Strong earnings and expectations that
profitability was not as badly hurt by the Asian crisis as feared served as
the basis for the rally in technology stocks. Stable interest rates and few
signs of inflation preserved the positive market environment through the end
of February, with blue-chip stocks leading the advance.
At the beginning of March 1998, signs of a strengthening economy pushed
the 30-year bellwether bond above 6.0 percent for the first time in three
months. Earnings concerns, particularly in the technology sector, provided
for an uneven stock market in early-March. Despite a decline in the February
unemployment rate to 4.6 percent, bond prices advanced on news of a loss of
jobs in the manufacturing sector and stocks moved higher as technology issues
rallied. Both bond and stock prices benefitted from plunging oil prices in
mid-March, as further new highs were established in the DJIA and the yield on
30-year bond
<PAGE>
RP FINANCIAL LC.
PAGE 4.15
moved back below 6.0 percent. Positive fundamentals in the banking sector and
a recovery in oil stocks further sustained the stock market rally through the
week ended March 20, 1998. On March 20, 1998, the DJIA closed at an all-time
high of 8906.43, an increase of 30.9 percent from one year ago.
Similar to the overall stock market, the market for thrift stocks has
generally been favorable during the past twelve months. Like the stock market
in general, thrift stocks experienced a sharp sell-off in mid-March 1997. In
fact, interest rate sensitive issues were among the sectors hardest hit by
the revised January retail sales report, as the 30-year bond approached 7.0
percent. Interest rate sensitive issues continued to experience selling
pressure in late-March and early-April, as signs of a strengthening economy
pushed interest rates higher. The sell-off in thrift stocks culminated on
April 11, 1997, as interest rates increased sharply on news of the higher
than expected rise in core producer prices for March. Thrift prices edged
moestly higher in mid-April, reflecting generally favorable first quarter
earnings and a slight decline in interest rates following the release of
economic data which showed that inflation was low. Favorable inflation data
and the budget agreement provided for a more substantial rally in thrift
stocks in late-April and early-May, as interest rate sensitive issues were
bolstered by declining interest rates.
Thrift stocks continued to trend higher through June and early-July 1997,
based on the improved interest rate outlook and an overall positive outlook
for the economy. Generally favorable second quarter earnings and the 30-year
U.S. Treasury bond yield declining below 6.50 percent served to further boost
thrift prices in mid-July, with the declining interest rate environment
serving to sustain the rally in thrift prices through the end of July. Thrift
prices generally declined during the first half of August, due to higher
interest rates and profit taking. From July 31, 1997 to
August 15, 1997, the SNL Index declined by 3.7 percent. Thrift prices
recovered modestly during the second half of August, as the Federal Reserve
left short-term interest rates unchanged at its August meeting. Thrift
stocks participated in the one day stock market rally that occurred on
September 2, 1997, as evidenced by a 1.95 percent increase in the SNL
Index. News of NationsBank's proposed acquisition of Barnett Banks for more
than four times its book value appears to have further contributed to the one
day run-up in thrift prices. In contrast to the overall stock market, thrift
prices continued to move higher following the one day rally in the DJIA.
Stable interest rates and acquisition news sustained the positive market for
thrift issues. The decline in interest rates following the release of the
August consumer price index in mid-September served to
<PAGE>
RP FINANCIAL, LC.
PAGE 4.16
further the rally in thrift prices. During late-September and early-October,
interest rate sensitive issues in general benefited from the declining
interest rate environment and expectations of strong third-quarter earnings.
The upward trend in thrift prices stalled in mid-October 1997, as
interest rates moved higher following warnings by the Federal Reserve
Chairman of inflation creeping back into the economy due to the tight labor
markets. Thrift stocks gyrated in conjunction with the overall market in
late-October, with the SNL index declining by 5.2 percent on October 27 and
increasing by 2.4 percent on October 28. Aided by the favorable interest rate
climate, thrift stocks posted further gains in early-November and then
retreated modestly in mid-November. Thrift and bank issues declined on
concerns that a slowing U.S. economy could lead to weaker loan demand and
higher delinquency rates. However, led by the strengthening bond market,
thrift and bank issues moved higher during late-November and early-December.
Acquisition news also contributed to the upturn in bank and thrift prices, as
two major bank acquisitions were announced for relatively high price-to-book
multiples. First Union Corp.'s proposed acquisition of CoreStates Financial
($47 billion in assets) was for 539 percent of book value, while First
American Corporation's proposed acquisition for Deposit Guaranty Corporation
($6.8 billion in assets) was for 419 percent of book value. Those deals,
along with speculation of possible other major thrift and bank acquisitions,
filtered into the prices of bank and thrift issues in general. Concerns of
relatively high valuations somewhat offset the declining interest rate
environment, as thrift issues traded in a narrow range in mid-December.
Thrift prices moved higher at the close of 1997, as interest rates continued
to decline.
The positive trend in thrift prices was not sustained at the beginning
of 1998, as thrift prices moved sharply lower during early-January trading.
From January 2, 1998 to January 9, 1998, the SNL index for all
publicly-traded thrifts declined from 810.5 to 720.2, or 11.1 percent. The
sell-off in thrift stocks was prompted by concerns that the flattening yield
curve would put pressure on earnings, particularly among institutions which
maintained high concentrations of mortgage loans. Thrift prices recovered
somewhat during the second half of January, with the upward trend becoming
more pronounced in early-February. Fourth quarter earnings, which generally
met expectations, and acquisition news led the recovery in thrift prices. The
ongoing trend of consolidation was highlighted by the proposed merger between
First Nationwide Holdings, San Francisco, California ($30.9 billion in
assets) and Golden State Bancorp, Glendale, California ($16.0 billion in
assets), which was announced in early-
<PAGE>
RP FINANCIAL, LC.
PAGE 4.17
February. Stable interest rates and acquisitions provided for a mildly
positive increase in thrift stocks during the balance of February.
Thrift issues continued to edge higher during the first half of March
1998, reflecting improving fundamentals and improving expectations of favorable
first quarter earnings. The announcement of Washington Mutual's acquisition of
H.P. Ahmanson for 390 percent of book value on March 17, 1998 provided a more
notable boost to thrift prices, particularly the stocks of the
California-based institutions. On March 20, 1998, the SNL Index for all
publicly-traded thrifts closed at 872.7, an increase of 57.8 percent from one
year ago.
B. THE NEW ISSUE MARKET
In addition to thrift stock market conditions in general, the new
issue market for converting thrifts is also an important consideration in
determining the Association's pro forma market value. The new issue market is
separate and distinct from the market for seasoned stock thrifts in that the
pricing ratios for converting issues are computed on a pro forma basis,
specifically: (1) the numerator and denominator are both impacted by the
conversion offering amount, unlike existing stock issues in which price
change affects only the numerator; and (2) the pro forma pricing ratio
incorporates assumptions regarding source and use of proceeds, effective tax
rates, stock plan purchases, etc. which impact pro forma financials, whereas
pricing for existing issues are based on reported financials. The
distinction between pricing of converting and existing issues is perhaps no
clearer than in the case of the price/tangible book ("P/TB") ratio in that
the P/TB ratio of a converting thrift will typically always result in a
discount to tangible book value whereas in the current market for existing
thrifts the P/TB reflects a premium to tangible book value. Therefore, it is
appropriate to also consider the market for new issues, both at the time of
the conversion and in the aftermarket.
In general, the market environment for converting thrift issues was
highly receptive throughout 1997, with most converting issues being
oversubscribed and trading higher in initial trading activity. To date, the
positive market environment for converting thrift issues has been sustained
during 1998. Since late-December 1997, conversion offerings completed and
began trading have exhibited an average price increase of 46.7 percent on the
first day of trading. As shown in Table 4.2, the average one week change in
price for conversion offerings completed during the latest three month
period ending March 20, 1998 equaled positive 47.4 percent. The average pro
forma price/tangible book and core
<PAGE>
RP FINANCIAL, LC.
Table 4.2
Pricing Characteristics and After-Market Trends
Recent Conversions Completed (Last Three Months)
<TABLE>
<CAPTION>
Institutional Information Pre-Conversion Data Offering Information
------------------------- -------------------------------- -----------------------
Financial Info. Asset Quality
---------------- -------------
Conversion Equity/ NPAs/ Res. Gross % of Exp./
Institution State Date Ticker Assets Assets Assets Cov. Proc. Mid. Proc.
- ----------- ----- ---- ------ ------ ------- ------ --- ------ ----- -----
($Mil) (%) (%)(2) (%) ($Mil.) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Standard Conversions
SFSB Holding Company PA 03/02/98 SFSH .................. $ 38 9.20% 0.59% 47% $ 7.3 132% 4.4%
Richmond County Fin. Corp. NY 02/19/98 RCBK .................. 1,006 10.22% 0.64% 102% 244.7 132% 2.7%
Hopfed Bancorp KY 02/09/98 HFBC .................. 202 9.27% 0.12% 94% 40.3 132% 1.9%
Timberland Bancorp WA* 01/13/98 TSBK .................. 212 11.65% 3.83% 21% 66.1 132% 1.5%
Mystic Financial, Inc. MA* 01/09/98 MYST .................. 158 7.78% 0.22% 302% 27.1 132% 3.4%
Wyman Park Bancorp MD 01/07/98 P. Sheet............... 63 7.50% 0.24% 183% 10.1 132% 4.6%
Delaware First Fin. Corp. DE 01/05/98 P. Sheet............... 107 5.63% 0.81% 53% 11.6 132% 4.8%
United Tennessee Bancshares TN* 01/05/98 UTBI .................. 65 10.41% 0.09% 903% 14.5 132% 4.9%
Great Pee Dee Bancorp SC 12/31/97 PEDE .................. 60 18.79% 0.18% 312% 21.8 132% 3.5%
Coddle Creek Financial NC 12/31/97 P. Sheet............... 114 12.90% 0.88% 63% 33.7 132% 3.2%
Union Community Bancorp IN* 12/29/97 UCBC .................. 86 17.23% 0.16% 165% 30.4 132% 2.6%
Warwick Community Bncrp NY 12/23/97 WSBI .................. 291 10.04% 0.56% 93% 64.1 132% 3.4%
Staten Island Bancorp, Inc. NY* 12/22/97 SIB ................... 2,145 9.11% 1.15% 58% 515.8 132% 1.7%
Averages - Standard Conversions: $ 350 10.75% 0.73% 184% $ 83.7 132% 3.3%
Medians - Standard Conversions: $ 114 10.04% 0.56% 94% $ 30.4 132% 3.4%
Second-Step Conversions
Heritage Financial Corp. WA* 01/09/98 HFWA .................. $ 249 11.39% 0.20% 537% $ 66.1 132% 2.1%
Guaranty Fed. Bancshares MO* 12/31/97 GFED .................. 212 13.82% 0.64% 244% 43.6 132% 2.1%
Averages - 2nd Step Conversions: $ 230 12.61% 0.42% 390% $ 54.9 132% 2.1%
Medians - 2nd Step Conversions: $ 230 12.61% 0.42% 390% $ 54.9 132% 2.1%
Averages - All Conversions: $ 334 11.00% 0.69% 212% $ 79.8 132% 3.1%
Medians - All Conversions: $ 158 10.22% 0.56% 102% $ 33.7 132% 3.2%
</TABLE>
<TABLE>
<CAPTION>
Institutional Information Contribution to Insider Purchases
------------------------- Charitable Found.
----------------- -----------------
Benefit Plans
--------------- Initial
Conversion % of Recog. Mgmt.& Dividend
Institution State Date Ticker Form Offering ESOP Plans Dirs. Yield
- ----------- ----- ---- ------ ---- -------- ---- ------ ------ --------
(%) (%) (%) (%)(3) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Standard Conversions
SFSB Holding Company PA 03/02/98 SFSH .................. N.A. N.A. 8.0% 4.0% 7.9% 0.00%
Richmond County Fin. Corp. NY 02/19/98 RCBK .................. Stock 8.00% 8.0% 4.0% 1.2% 0.00%
Hopfed Bancorp KY 02/09/98 HFBC .................. N.A. N.A. 8.0% 4.0% 16.7% 0.00%
Timberland Bancorp WA* 01/13/98 TSBK .................. N.A. N.A. 8.0% 4.0% 3.8% 0.00%
Mystic Financial, Inc. MA* 01/09/98 MYST .................. N.A. N.A. 8.0% 4.0% 4.6% 0.00%
Wyman Park Bancorp MD 01/07/98 P. Sheet............... N.A. N.A. 8.0% 4.0% 5.9% 0.00%
Delaware First Fin. Corp. DE 01/05/98 P. Sheet............... N.A. N.A. 8.0% 4.0% 2.5% 0.00%
United Tennessee Bancshares TN* 01/05/98 UTBI .................. N.A. N.A. 8.0% 4.0% 9.6% 3.00%
Great Pee Dee Bancorp SC 12/31/97 PEDE .................. Stock 0.91% 8.0% 4.0% 8.5% 3.00%
Coddle Creek Financial NC 12/31/97 P. Sheet............... N.A. N.A. 8.0% 4.0% 8.9% 2.00%
Union Community Bancorp IN* 12/29/97 UCBC .................. N.A. N.A. 8.0% 4.0% 5.8% 3.00%
Warwick Community Bncrp NY 12/23/97 WSBI .................. Stock 3.00% 8.0% 4.0% 3.6% 0.00%
Staten Island Bancorp, Inc. NY* 12/22/97 SIB ................... Stock 5.00% 8.0% 4.0% 1.5% 0.00%
Averages - Standard Conversions: N.A. N.A. 8.0% 4.0% 6.2% 0.85%
Medians - Standard Conversions: N.A. N.A. 8.0% 4.0% 5.8% 0.00%
Second-Step Conversions
Heritage Financial Corp. WA* 01/09/98 HFWA .................. N.A. N.A. 2.0% 1.0% 1.3% 0.00%
Guaranty Fed. Bancshares MO* 12/31/97 GFED .................. N.A. N.A. 8.0% 4.0% 5.1% 3.00%
Averages - 2nd Step Conversions: N.A. N.A. 5.0% 2.5% 3.2% 1.50%
Medians - 2nd Step Conversions: N.A. N.A. 5.0% 2.5% 3.2% 1.50%
Averages - All Conversions: N.A. N.A. 7.6% 3.8% 5.8% 0.93%
Medians - All Conversions: N.A. N.A. 8.0% 4.0% 5.1% 0.00%
</TABLE>
<TABLE>
<CAPTION>
Institutional Information Pro Forma Data
------------------------- ------------------------------------------
Pricing Ratios(4) Financial Charac.
----------------- -----------------
Conversion Core IPO
Institution State Date Ticker P/TB P/E(5) P/A ROA TE/A ROE Price
- ----------- ----- ---- ------ ---- ----- --- --- ---- --- -----
(%) (x) (%) (%) (%) (%) ($)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Standard Conversions
SFSB Holding Company PA 03/02/98 SFSH .................. 76.1% N.M. 16.6% -0.2% 21.8% -0.9% $ 10.00
Richmond County Fin. Corp. NY 02/19/98 RCBK .................. 84.8% 17.8x 21.8% 1.2% 25.6% 4.8% 10.00
Hopfed Bancorp KY 02/09/98 HFBC .................. 75.4% 17.4 17.0% 1.0% 22.6% 4.4% 10.00
Timberland Bancorp WA* 01/13/98 TSBK .................. 80.8% 13.3 24.6% 2.0% 30.5% 6.4% 10.00
Mystic Financial, Inc. MA* 01/09/98 MYST .................. 77.0% 19.2 15.0% 0.8% 19.5% 4.0% 10.00
Wyman Park Bancorp MD 01/07/98 P. Sheet............... 76.7% 22.1 14.1% 0.6% 18.4% 3.5% 10.00
Delaware First Fin. Corp. DE 01/05/98 P. Sheet............... 73.9% 26.1 9.9% 0.4% 13.4% 2.8% 10.00
United Tennessee Bancshares TN* 01/05/98 UTBI .................. 77.2% 15.1 18.9% 1.2% 24.5% 4.8% 10.00
Great Pee Dee Bancorp SC 12/31/97 PEDE .................. 74.0% 18.0 28.0% 1.6% 37.8% 4.1% 10.00
Coddle Creek Financial NC 12/31/97 P. Sheet............... 77.8% 28.2 23.6% 0.8% 30.3% 2.8% 50.00
Union Community Bancorp IN* 12/29/97 UCBC .................. 74.6% 17.2 27.2% 1.6% 36.5% 4.3% 10.00
Warwick Community Bncrp NY 12/23/97 WSBI .................. 79.4% 18.1 18.9% 1.0% 23.8% 4.4% 10.00
Staten Island Bancorp, Inc. NY* 12/22/97 SIB ................... 87.2% 18.4 20.9% 1.1% 24.0% 4.7% 12.00
Averages - Standard Conversions: 78.1% 19.2x 19.7% 1.0% 25.3% 3.9% $ 13.23
Medians - Standard Conversions: 77.0% 18.1x 18.9% 1.0% 24.0% 4.3% $ 10.00
Second-Step Conversions
Heritage Financial Corp. WA* 01/09/98 HFWA .................. 107.1% 20.3x 31.3% 1.5% 29.2% 5.3% $ 10.00
Guaranty Fed. Bancshares MO* 12/31/97 GFED .................. 93.5% 20.2 25.0% 1.2% 26.7% 4.6% 10.00
Averages - 2nd Step Conversions: 100.3% 20.2x 28.2% 1.4% 28.0% 4.9% $ 10.00
Medians - 2nd Step Conversions: 100.3% 20.2x 28.2% 1.4% 28.0% 4.9% $ 10.00
Averages - All Conversions: 81.0% 19.4x 20.9% 1.1% 25.6% 4.0% $ 12.80
Medians - All Conversions: 77.2% 18.3x 20.9% 1.1% 24.5% 4.4% $ 10.00
</TABLE>
<TABLE>
<CAPTION>
Institutional Information Post-IPO Pricing Trends
------------------------- -------------------------------------------------------
Closing Price:
-------------------------------------------------------
First After After
Conversion Trading % First % First %
Institution State Date Ticker Day Change Week(6) Change Month(7) Change
- ----------- ----- ---- ------ ------- ------ ------- ------ ------- ------
($) (%) ($) (%) ($) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Standard Conversions
SFSB Holding Company PA 03/02/98 SFSH .................. $ 12.81 28.1% $ 13.13 31.3% $ 14.25 42.5%
Richmond County Fin. Corp. NY 02/19/98 RCBK .................. 16.31 63.1% 16.56 65.6% 18.00 80.0%
Hopfed Bancorp KY 02/09/98 HFBC .................. 16.81 68.1% 16.00 60.0% 16.75 67.5%
Timberland Bancorp WA* 01/13/98 TSBK .................. 14.50 45.0% 16.00 60.0% 16.00 60.0%
Mystic Financial, Inc. MA* 01/09/98 MYST .................. 14.44 44.4% 15.63 56.3% 15.00 50.0%
Wyman Park Bancorp MD 01/07/98 P. Sheet............... 13.75 37.5% 13.75 37.5% 14.38 43.8%
Delaware First Fin. Corp. DE 01/05/98 P. Sheet............... 12.88 28.8% 12.13 21.3% 12.75 27.5%
United Tennessee Bancshares TN* 01/05/98 UTBI .................. 14.75 47.5% 13.75 37.5% 14.25 42.5%
Great Pee Dee Bancorp SC 12/31/97 PEDE .................. 16.13 61.3% 15.50 55.0% 15.00 50.0%
Coddle Creek Financial NC 12/31/97 P. Sheet............... 77.00 54.0% 77.63 55.3% 79.25 58.5%
Union Community Bancorp IN* 12/29/97 UCBC .................. 14.69 46.9% 14.25 42.5% 14.25 42.5%
Warwick Community Bncrp NY 12/23/97 WSBI .................. 15.63 56.3% 17.00 70.0% 15.63 56.3%
Staten Island Bancorp, Inc. NY* 12/22/97 SIB ................... 19.06 58.8% 19.44 62.0% 19.19 59.9%
Averages - Standard Conversions: $19.90 49.2% $ 20.06 50.3% $20.36 52.4%
Medians - Standard Conversions: $14.75 47.5% $ 15.63 55.3% $15.00 50.0%
Second-Step Conversions
Heritage Financial Corp. WA* 01/09/98 HFWA .................. $13.25 32.5% $ 13.25 32.5% $14.25 42.5%
Guaranty Fed. Bancshares MO* 12/31/97 GFED .................. 12.88 28.8% 12.50 25.0% 12.38 23.8%
Averages - 2nd Step Conversions: $13.07 30.7% $ 12.88 28.8% $13.31 33.1%
Medians - 2nd Step Conversions: $13.07 30.7% $ 12.88 28.8% $13.31 33.1%
Averages - All Conversions: $18.99 46.7% $ 19.10 47.4% $19.42 49.8%
Medians - All Conversions: $14.69 46.9% $ 15.50 55.0% $15.00 33.1%
</TABLE>
- ---------------------
Note: * - Appraisal performed by RP Financial; "NT" - Not Traded; "NA" - Not
Applicable, Not Available.
(1) Non-OTS regulated thrift.
(2) As reported in summary pages of prospectus.
(3) As reported in prospectus.
(4) Does not take into account the adoption of SOP 93-6.
(5) Excludes impact of special SAIF assessment on earnings.
(6) Latest price if offering less than one week old.
(7) Latest price if offering more than one week but less than one month old.
(8) Simultaneously converted to commercial bank charter.
March 20, 1998
<PAGE>
RP FINANCIAL, LC.
PAGE 4.19
price/earnings ratios of the recent conversions was 81.0 percent and 19.4
times, respectively. The conversions that have began trading since
late-December 1997 were all closed at the top of the super range.
In examining the current pricing characteristics of institutions
completing their conversions during the last three months (see Table 4.3), we
note there exists a considerable difference in pricing ratios compared to the
universe of all publicly-traded SAIF-insured thrifts. Specifically, the
current average P/B ratio of the conversions completed in the most recent
three month period of 133.05 percent reflects a discount of 19.84 percent
from the average P/B ratio of all publicly-traded thrifts (equal to 165.99
percent), and the average core P/E ratio of 26.79 times reflects a premium of
25.4 percent from the all public average core P/E ratio of 21.37 times. The
pricing ratios of the higher capitalized but lower earning recently converted
thrifts (with resulting lower return on equity measures) suggest that the
investment community has determined to discount their stocks on a book basis
until the earnings improve through redeployment and leveraging of the
proceeds over the longer term.
C. THE ACQUISITION MARKET
Also considered in the valuation was the potential impact on
Ponchatoula Savings' stock price of recently completed and pending
acquisitions of other thrifts operating in the Association's market area. As
shown in Exhibit IV-4, there has been a notable amount of acquisition
activity involving Louisiana commercial banks during 1997 and year-to-date
1998, while only two Louisiana thrifts were acquired (CitiSave Financial and
First Federal SB) and there is one pending acquisition of a Louisiana thrift
(Meritrust Federal SB). The absence of thrift acquisitions is due in part to
the relatively limited number of publicly-owned thrifts based in Louisiana.
In light of the Association's two office operation and relatively higher pro
forma capital position, Ponchatoula Savings is not considered to be a highly
attractive acquisition candidate and, thus, acquisition speculation is not
expected to have a material influence on the Association's trading price.
However, at the same time, the fairly active acquisition market for Louisiana
bank stocks, may imply a certain degree of acquisition speculation for the
Association's stock. To the extent that acquisition speculation may impact
the Association's offering, we have largely taken this into account in
selecting Peer Group companies which operate in regional markets that have
experienced a comparable degree of consolidation among financial institutions
as has been experienced in the Association's regional market area and, thus,
are subject to the same type of acquisition speculation that may influence
Ponchatoula Savings' trading price.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.3
Market Pricing Comparatives
Prices As of March 20, 1998
<TABLE>
<CAPTION>
Per Share Data
Market --------------
Capitalization Pricing Ratios(3)
--------------- Core Book -------------------------------------------
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
- --------------------- -------- ------- ------- ------- ------ ------ ------- ------ ------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts ..................... 24.22 170.62 1.05 14.70 20.22 165.99 21.04 170.54 21.37
Converted Last 3 Mths (no MHC) ........... 16.67 187.64 0.57 12.60 26.16 133.05 36.73 133.40 26.79
Comparable Group
- ----------------
Converted Last 3 Mths (no MHC)
- ------------------------------
PEDE Great Pee Dee Bancorp of SC ........ 15.75 34.68 0.56 13.51 28.13 116.58 44.14 116.58 28.13
GFED Guaranty Fed Bancshares of MO ...... 12.63 78.58 0.32 11.18 NM 112.97 34.08 112.97 NM
HFWA Heritage Financial Corp of WA ...... 15.13 147.50 0.49 9.34 NM 161.99 47.36 161.99 NM
HFBC HopFed Bancorp of KY ............... 17.25 69.59 0.58 13.26 29.74 130.09 29.39 130.09 29.74
MYST Mystic Financial of MA ............. 17.88 48.47 0.52 13.00 NM 137.54 26.78 137.54 NM
RCBK Richmond County Fin Corp of NY ..... 17.94 438.92 0.56 11.79 NM 152.16 39.03 152.16 NM
SIB Staten Island Bancorp of NY ........ 20.94 945.02 0.70 15.20 NM 137.76 35.64 141.58 29.91
TSBK Timberland Bancorp of WA ........... 18.13 119.89 0.75 12.38 24.17 146.45 44.60 146.45 24.17
UCBC Union Community Bancorp of IN ...... 15.50 47.15 0.58 13.40 26.72 115.67 42.20 115.67 26.72
UTBI United Tenn. Bancshares of TN ...... 14.56 21.18 0.66 12.95 22.06 112.43 27.53 112.43 22.06
WSBI Warwick Community Bncrp of NY ...... 17.63 113.08 0.55 12.60 NM 139.92 33.25 139.92 NM
<CAPTION>
Dividends(4) Financial Characteristics(6)
---------------------- ----------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ ----------- ------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- ------- ------ ------- ------ ------- ------ ----- ----- ----- -----
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts ..................... 0.37 1.54 30.87 1,015 13.61 0.74 0.94 8.11 0.89 7.58
Converted Last 3 Mths (no MHC) ........... 0.05 0.39 5.17 510 27.82 0.78 1.23 4.84 1.30 5.38
Comparable Group
- ----------------
Converted Last 3 Mths (no MHC)
- ------------------------------
PEDE Great Pee Dee Bancorp of SC ........ 0.00 0.00 0.00 79 37.86 0.45 1.57 4.15 1.57 4.15
GFED Guaranty Fed Bancshares of MO ...... 0.30 2.38 NM 231 30.17 0.61 1.00 5.76 0.97 5.58
HFWA Heritage Financial Corp of WA ...... 0.00 0.00 0.00 311 29.23 0.10 1.53 5.25 1.53 5.25
HFBC HopFed Bancorp of KY ............... 0.00 0.00 0.00 237 22.59 0.12 0.99 4.37 0.99 4.37
MYST Mystic Financial of MA ............. 0.00 0.00 0.00 181 19.47 0.18 0.78 4.00 0.78 4.00
RCBK Richmond County Fin Corp of NY ..... 0.00 0.00 0.00 1,125 25.65 NA 1.22 4.75 1.22 4.75
SIB Staten Island Bancorp of NY ........ 0.00 0.00 0.00 2,651 25.87 0.83 0.70 5.11 1.53 11.18
TSBK Timberland Bancorp of WA ........... 0.00 0.00 0.00 269 30.46 3.07 1.85 6.06 1.85 6.06
UCBC Union Community Bancorp of IN ...... 0.30 1.94 51.72 112 36.48 NA 1.58 4.33 1.58 4.33
UTBI United Tenn. Bancshares of TN ...... 0.00 0.00 0.00 77 24.48 0.93 1.25 5.10 1.25 5.10
WSBI Warwick Community Bncrp of NY ...... 0.00 0.00 0.00 340 23.76 0.69 1.04 4.37 1.04 4.37
</TABLE>
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month
data, adjusted to omit non-operating items (including the SAIF
assessment) on a tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets;
P/TB = Price to tangible book value; and P/CORE = Price to estimated
core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend
declared.
(5) Indicated dividend as a percent of trailing twelve month estimated core
earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month earnings and average equity and assets
balances.
(7) Excludes from averages those companies the subject of actual or rumored
acquisition activities or unusual operating characteristics.
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been obtained
from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.21
D. THE MARKET FOR PONCHATOULA SAVINGS' STOCK
Ponchatoula Savings' minority shares of stock are not traded on
NASDAQ or any other exchange. As of December 31, 1997, the Association's
minority shares outstanding totaled 150,105 and, thus, trading activity in
the Association's stock has been very infrequent. As indicated by the
Association's management, the most recent trade in the Association's stock
(December 1997) was for $11.00 per share. In addition to the liquidity
differences between the minority shares currently traded and the new
conversion stock (the new conversion stock will more liquid owing to the
greater number of public shares outstanding and expected NASDAQ listing),
there are other differences between the Association's, minority stock and the
conversion stock that will be issued by the Holding Company. Such differences
include a lower return on equity for the Holding Company's conversion stock,
and dividend payments will be made on all shares outstanding; thereby,
limiting the Association's ability to sustain the current level of dividends
paid to non-MHC shareholders in light of the higher resulting payout ratio.
For these reasons, RP Financial discounted the limited trading activity in
the Association's minority stock for purposes of the valuation analysis.
Taking these factors and trends into account, primarily recent
trends in the new issue market, market conditions overall, and recent trends
in the acquisition market, RP Financial concluded that no adjustment was
appropriate in the valuation analysis for marketing of the issue.
8. MANAGEMENT
Ponchatoula Savings' management team has experience and expertise in all
of the key areas of the Association's operations. Exhibit IV-5 provides
summary resumes of Ponchatoula Savings' Board of Directors and executive
management. While the Association does not have the resources to develop a
great deal of management depth, given its asset size and the impact it would
have on operating expenses, management and the Board have been effective in
implementing an operating strategy that can be well managed by the
Association's present management structure as indicated by Ponchatoula
Savings' returns, capital position, and credit and interest rate risk
exposure.
Similarly, the returns, capital positions, and other operating measures
of the Peer Group companies are indicative of well-managed financial
institutions, which have Boards and management teams that have been
effective in implementing conservative and competitive
<PAGE>
RP FINANCIAL, LC.
PAGE 4.22
operating strategies. Therefore, on balance, we concluded no valuation
adjustment relative to the Peer Group was appropriate for this factor.
9. EFFECT OF GOVERNMENT REGULATION AND REGULATORY REFORM
The Association and the Peer Group companies were similarly impacted by
the recently enacted SAIF rescue legislation, as they are all SAIf-insured
institutions subject to the same one time assessment and their deposits will
be assessed at the same rate going forward. In summary, as a fully-converted
SAIF-insured savings association, Ponchatoula Savings will operate in
substantially the same regulatory environment as the Peer Group members --
all of whom are adequately capitalized institutions and are operating with no
apparent restrictions. Exhibit IV-6 reflects the Association's pro forma
regulatory capital ratios.
Due to a recent change in regulatory policy adopted by the OTS regarding
waived dividends at the MHC level that were previously "grandfathered",
dividends considered to be excess dividends by the OTS must be accounted for
in calculating the minority ownership interest in a "second-step" conversion.
Based on this change in OTS policy, and because a portion of the waived
dividends at the MHC level are considered to be excess by the OTS, the
minority stockholders will in aggregate hold a lower ownership interest after
the "second-step" conversion. Taking this adjustment into account will
increase the resulting MHC ownership interest from 75.24 percent to 76.06
percent on a pro forma basis. Thus, our calculations for the exchange ratio
and the size of the offering were based upon a pro forma ownership interest
of 23.94 percent and 76.06 percent for the Public Ponchatoula Shares and the
offering shares, respectively. Accordingly, a slight downward valuation
adjustment for this factor is warranted because the Peer Group members are
not subject to this change in policy.
SUMMARY OF ADJUSTMENTS
Overall, we believe the Association's pro forma market value should be
discounted relative to the Peer Group as follows:
<PAGE>
RP FINANCIAL, LC.
PAGE 4.23
<TABLE>
<CAPTION>
Key Valuation Parameters: Valuation Adjustment
------------------------- --------------------
<S> <C>
Financial Condition No Adjustment
Profitability, Growth and Viability of Earnings Moderate Downward
Asset Growth Slight Downward
Primary Market Area No Adjustment
Dividends Slight Downward
Liquidity of the Shares Slight Downward
Marketing of the Issue No Adjustment
Management No Adjustment
Effect of Government Regulations and Regulatory Reform Slight Downward
</TABLE>
VALUATION APPROACHES
In applying the accepted valuation methodology promulgated by the OTS
and adopted by the FDIC, i.e., the pro forma market value approach, we
considered the three key pricing ratios in valuing Ponchatoula Savings'
to-be-issued stock -- price/earnings ("P/E"), price/book ("P/B"), and
price/assets ("P/A") approaches -- all performed on a pro forma basis
including the effects of the conversion proceeds. In computing the pro forma
impact of the conversion and the related pricing ratios, we have incorporated
the valuation parameters disclosed in Ponchatoula Savings' prospectus for
offering expenses, the effective tax rate, and stock benefit plan assumptions
(summarized in Exhibits IV-7 and IV-8). A reinvestment rate of 5.94 percent
was utilized, equal to the arithmetic average of the Association's average
yield on interest-earnings assets and cost of deposits for the fiscal year
ended December 31, 1997 (the reinvestment rate calculation specified by OTS
conversion guidelines). The 5.94 percent reinvestment rate is believed to be
representative of the blended rate reflecting the Association's business plan
as converted and incorporating the impact of deposit withdrawals to fund a
portion of the stock issued in conversion. In our estimate of value, we
assessed the relationship of the pro forma pricing ratios relative to the
Peer Group and the recent conversions.
RP Financial's valuation placed emphasis on the following:
o P/E APPROACH. The P/E approach is generally the best indicator of
long-term value for a stock. Given the similarities between the
Association's and the Peer Group's earnings and overall financial
condition, the P/E approach was carefully considered in this
valuation.
o P/B APPROACH. P/B ratios have generally served as a useful
benchmark in the valuation of thrift stocks, with the greater
determinant of long term value being earnings. RP Financial
considered the P/B approach to be a reliable indicator of value
given current market conditions, particularly the market for new
<PAGE>
RP FINANCIAL, LC.
PAGE 4.24
conversions which often exhibit P/E multiples that are well above
industry averages and, thus, are viewed as a less meaningful
indicator of value.
o P/A APPROACH. P/A ratios are generally a less reliable indicator
of market value, as investors do not place significant weight on
total assets as a determinant of market value. Investors place
significantly greater weight on book value and earnings -- which
have received greater weight in our valuation analysis.
o TRADING OF PONCHATOULA SAVINGS' STOCK. Converting institutions
generally do not have stock outstanding. Ponchatoula Savings,
however, has public shares outstanding due to the mutual holding
company form of ownership. However, since there is not an active
and liquid market for Ponchatoula Savings' minority shares of
common stock and the conversion stock will have different
characteristics than the minority shares, this valuation method was
deemed to be less relevant than the other valuation methodologies
and therefore received limited weighting in our valuation.
The Association has adopted Statement of Position ("SOP") 93-6, which
will cause earnings per share computations to be based on shares issued and
outstanding excluding unreleased ESOP shares. For purposes of preparing the
pro forma pricing analyses, we have reflected all shares issued in the
offering, including all ESOP shares, to capture the full dilutive impact,
particularly since the ESOP shares are economically dilutive, receive
dividends and can be voted. However, we did consider the impact of the
adoption of SOP 93-6 in the valuation.
Based on the application of the three valuation approaches, taking into
consideration the valuation adjustments discussed above, and placing the
greatest weight on the P/E and P/B approaches, RP Financial concluded that
the pro forma market value of the Association's conversion stock is
$11,175,390 at the midpoint at this time. The midpoint value and resulting
valuation range is based on the sale of a 76.06 ownership interest to the
public, which provides for an $8.5 million public offering at the midpoint
value.
1. PRICE-TO-EARNINGS ("P/E"). The application of the P/E valuation
method requires calculating the Association's pro forma market value by
applying a valuation P/E multiple times the pro forma earnings base. Ideally,
the pro forma earnings base is composed principally of the Association's
recurring earnings base, that is, earnings adjusted to exclude any one-time
non-operating items, plus the estimated after-tax earnings benefit of the
reinvestment of net conversion proceeds. Ponchatoula Savings' reported
earnings equaled $316,000 for the twelve months ended December 31, 1997. In
deriving Ponchatoula Savings' core earnings, the only adjustment made to
reported earnings was to take into account the
<PAGE>
RP FINANCIAL, LC.
PAGE 4.25
reinvestment of the $102,000 of assets currently held at the MHC, which will
be consolidated with the Association as the result of the conversion.
Reinvestment of the MHC assets at the 5.94 percent reinvestment rate added
approximately $4,000 to Ponchatoula Savings' after-tax earnings. Gains
realized from the sale of fixed rate loans were included as a part of the
Association's core earnings, since such gains have been a consistent part of
the Association's earnings in recent years and the sale of fixed rate loan
originations has been an ongoing activity for the Association. As shown
below, Ponchatoula Savings' core earnings were determined to equal $320,000
for the twelve months ended December 31, 1997. (Note: see Exhibit IV-9 for
the adjustments applied to the Peer Group's earnings in the calculation of
core earnings).
<TABLE>
<CAPTION>
Amount
------
<S> <C>
$(000)
Net income $316
Reinvestment of MHC assets(1) 4
----
Core earnings estimate $320
</TABLE>
(1) Tax effected at 34.0 percent.
Based on Ponchatoula Savings' trailing twelve month estimated core
earnings, and incorporating the impact of the pro forma assumptions discussed
previously, the Association's pro forma P/E multiple at the $11.2 million
midpoint value was 24.98 times, resulting in a premium of 15.9 percent from
the Peer Group average of 21.55 times core earnings. The Association's
premium P/E multiple takes into account the resulting discount reflected in
the P/B approach.
2. PRICE-TO-BOOK ("P/B"). The application of the P/B valuation method
requires calculating the Association's pro forma market value by applying a
valuation P/B ratio to Ponchatoula Savings' pro forma book value. The
pre-conversion book value for Ponchatoula Savings of $5.837 million was equal
to the Association's reported capital at December 31, 1997, plus the $102,000
of mutual holding company assets at December 31, 1997 which will be
consolidated with the Association's capital as a result of the conversion.
Based on the $11.2 million midpoint valuation, Ponchatoula Savings' pro forma
P/B ratio was 86.75 percent. In comparison to the average P/B ratio for the
Peer Group of 133.32 percent, Ponchatoula Savings' valuation reflected a
discount of 34.9 percent. RP Financial considered the discount under the P/B
approach to be reasonable in light of the valuation adjustments referenced
earlier and the Association's resulting premium P/E multiple.
<PAGE>
RP FINANCIAL, LC.
PAGE 4.26
As indicated at the beginning of this chapter, RP Financial's analysis
of recent conversion pricing characteristics at conversion and in the
aftermarket has been limited to a "technical" analysis and, thus, the pricing
characteristics of recent conversions is not the primary determinate of value
herein. Particular focus was placed on the P/B approach in this analysis
since the P/E multiples do not reflect the actual impact of reinvestment and
the source of the conversion funds (i.e., external funds vs. deposit
withdrawals). At the midpoint value of $11.2 million, Ponchatoula Savings'
pro forma P/B ratio of 86.75 percent represented a premium of 7.1 percent
from the average P/B ratio of the recently completed stock conversions at
closing of 81.0 percent (see Table 4.2). The Association's pro forma P/B
ratio at the midpoint reflected a discount of 34.8 percent from the 133.05
percent average P/B ratio of the recently completed stock conversions in the
after market (see Table 4.3).
3. PRICE-TO-ASSETS ("P/A"). The P/A valuation methodology determines
market value by applying a valuation P/A ratio to the Association's pro forma
asset base, conservatively assuming no deposit withdrawals are made to fund
stock purchases. In all likelihood there will be deposit withdrawals, which
results in understating the pro forma P/A ratio which is computed herein. At
the midpoint of the valuation range, Ponchatoula Savings' value equaled
16.75 percent of pro forma assets. Comparatively, the Peer Group companies
exhibited an average P/A ratio of 21.88 percent, which implies a 23.4 percent
discount being applied to the Association's pro forma P/A ratio.
VALUATION CONCLUSION
It is our opinion that, as of March 20, 1998, the aggregate pro forma
market value of the Association, inclusive of the sale of the Mutual Holding
Company's ownership interest to public shareholders was $11,175,390 at the
midpoint. Based on this valuation and the approximate 76.1 percent ownership
interest being sold in the public offering, the midpoint value of the Holding
Company's stock offering was 8,500,000, equal to 850,000 shares at a per
share value of $10.00. Pursuant to OTS conversion guidelines, the 15 percent
offering range includes a minimum value of $7,225,000 and a maximum value of
$9,775,000. Based on the $10.00 per share offering price, this range equates
to an offering of 722,500 shares at the minimum to 977,500 shares at the
maximum. The Holding Company's offering also includes a provision for a super
range, which if exercised, would result in an offering size of $11,241,250,
equal to 1,124,125 shares at the $10.00 per share offering price. The
comparative pro forma valuation ratios relative to the Peer Group are shown
in Table 4.4, and
<PAGE>
RP FINANCIAL, LC.
PAGE 4.27
the key valuation assumptions are detailed in Exhibit IV-7. The pro forma
calculations for the range are detailed in Exhibit IV-8.
ESTABLISHMENT OF EXCHANGE RATIO
OTS regulations provide that in a conversion of a mutual holding
company, the minority stockholders are entitled to exchange their shares of
the Association's common stock for common stock of the Holding Company. The
Board of Directors of the Mutual Holding Company has independently
established a formula to determine the exchange ratio. The formula takes into
account the dividends considered to be excess by the OTS, resulting in a pro
forma ownership for the Public Ponchatoula Shares of 23.94 percent. Pursuant
to the formula, the Exchange Ratio will be determined at the end of the
Holding Company's stock offering based on the total number of shares sold in
the Subscription and Community offerings. Based upon this formula, and the
valuation conclusion and offering range concluded above, the Exchange Ratio
would be 1.5150 shares, 1.7823 shares, 2.0497 shares and 2.3571 shares of
Homestead Bancorp stock issued for each Public Ponchatoula Share, at the
minimum, midpoint, maximum and supermaximum of the offering range,
respectively. The Exchange Ratio formula and share exchange procedures were
determined independently by the Board of Directors. RP Financial expresses no
opinion on the proposed exchange of Holding Company shares for the Public
Ponchatoula Shares or on the proposed Exchange Ratio.
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 4.4
Public Market Pricing
Ponchatoula Savings and the Comparables
As of March 20, 1998
<TABLE>
<CAPTION>
Market Per Share Data
Capitalization --------------- Pricing Ratios(3) Dividends(4)
--------------- Core Book ------------------------------------- ----------------------
Price/ Market 12-Mth Value/ Amount/ Payout
Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE Share Yield Ratio(5)
------- ------- ------- ------- ------- ------ ------- ------- ------ ------- ----- -------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings
- -------------------
Superrange........................... 10.00 14.78 0.34 10.33 29.50 96.81 21.39 96.81 29.50 0.20 2.00 59.01
Range Maximum........................ 10.00 12.85 0.37 10.89 27.26 91.86 18.95 91.86 27.26 0.20 2.00 54.52
Range Midpoint....................... 10.00 11.18 0.40 11.53 24.98 86.75 16.75 86.75 24.98 0.20 2.00 49.95
Range Minimum........................ 10.00 9.50 0.44 12.39 22.49 80.68 14.48 80.68 22.49 0.20 2.00 44.97
SAIF-Insured Thrifts (7)
- ------------------------
Averages............................. 24.22 170.62 1.05 14.70 20.22 165.99 21.04 170.54 21.37 0.37 1.54 30.87
Medians.............................. --- --- --- --- 19.59 158.33 19.57 161.93 21.08 --- --- ---
All Non-MHC State of IA (7)
- ---------------------------
Averages............................. 21.50 68.47 0.83 16.54 21.03 130.08 31.36 130.08 21.84 0.41 1.88 50.48
Medians.............................. --- --- --- --- 21.03 122.51 21.78 128.51 21.84 --- --- ---
Comparable Group Averages
- -------------------------
Averages............................. 19.85 39.21 0.79 15.24 20.77 133.22 21.88 135.08 21.55 0.41 2.12 44.24
Medians.............................. --- --- --- --- 19.81 131.06 18.76 131.06 20.72 --- --- ---
State of IA
- -----------
ANA Acadiana Bancshares, Inc. of LA. 22.13 59.68 0.94 17.22 22.81 128.51 21.78 128.51 23.54 0.44 1.99 46.81
GSLA GS Financial Corp. of LA........ 20.63 70.95 0.48 16.30 NM 126.56 53.99 126.56 NM 0.28 1.36 58.33
MERI Meritrust FSB of Thibodaux LA(7) 78.94 61.10 3.51 25.66 22.49 307.64 26.13 307.64 22.49 0.70 0.89 19.94
TSH Teche Holding Company of LA..... 21.75 74.78 1.08 16.09 19.25 135.18 18.30 135.18 20.14 0.50 2.30 46.30
Comparable Group
- ----------------
ANA Acadiana Bancshares, Inc. of LA. 22.13 59.68 0.94 17.22 22.81 128.51 21.78 128.51 23.54 0.44 1.99 46.81
ETFS East Texas Fin. Serv. of TX..... 22.50 23.09 0.66 20.45 NM 110.02 19.22 110.02 NM 0.20 0.89 30.30
FFDB FirstFed Bancorp. Inc. of AL.... 23.75 27.43 1.48 15.00 16.05 158.33 15.34 172.48 16.05 0.50 2.11 33.78
GUPB GFSB Bancorp, Inc of Gallup NM.. 22.00 17.62 1.08 17.90 20.37 122.91 15.36 122.91 20.37 0.40 1.82 37.04
GSLA GS Financial Corp. of LA........ 20.63 70.95 0.48 16.30 NM 126.56 53.99 126.56 NM 0.28 1.36 58.33
SSFC South Street Fin. Corp. of NC... 12.38 57.89 0.44 7.28 28.79 170.05 25.34 170.05 28.14 0.40 3.23 NM
SZB SouthFirst Bancshares of AL..... 22.00 21.47 0.64 16.39 NM 134.23 12.98 137.67 NM 0.60 2.73 NM
SRN Southern Banc Company of AL..... 16.63 20.45 0.41 14.74 NM 112.82 19.27 113.83 NM 0.35 2.10 NM
TSH Teche Holding Company of LA..... 21.75 74.78 1.08 16.09 19.25 135.18 18.30 135.18 20.14 0.50 2.30 46.30
TWIN Twin City Bancorp. Inc. of TN... 14.75 18.72 0.70 11.04 17.35 133.61 17.22 133.61 21.07 0.40 2.71 57.14
<CAPTION>
Financial Characteristics(6)
------------------------------------------------------- Memo: Memo:
Reported Core Exchange Offering
Total Equity/ NPAs/ ----------- -----------
Financial Institution Assets Assets Assets ROA ROE ROA ROE Ratio Size
- --------------------- ------ ------- ------- ------- ------- ------- ------- ---------- --------
($Mil) (%) (%) (%) (%) (%) (%) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ponchatoula Savings
- -------------------
Superrange........................... 69 22.09 0.25 0.72 3.28 0.72 3.28 2.3571 11.24
Range Maximum........................ 68 20.62 0.26 0.69 3.37 0.69 3.37 2.0497 9.78
Range Midpoint....................... 67 19.31 0.26 0.67 3.47 0.57 3.47 1.7823 8.50
Range Minimum........................ 66 17.94 0.26 0.64 3.59 0.64 3.59 1.5150 7.23
SAIF-Insured Thrifts (7)
- ------------------------
Averages............................. 1,015 13.61 0.74 0.94 8.11 0.89 7.58
Medians.............................. --- --- --- --- --- --- ---
All Non-MHC State of IA (7)
- ---------------------------
Averages............................. 271 24.38 0.34 1.11 5.60 1.08 5.40
Medians.............................. --- --- --- --- --- --- ---
Comparable Group Averages
- -------------------------
Averages............................. 184 16.73 0.50 0.87 5.49 0.84 5.29
Medians.............................. --- --- --- --- --- --- ---
State of IA
- -----------
ANA Acadiana Bancshares, Inc. of LA. 274 16.95 0.50 0.98 5.64 0.95 5.46
GSLA GS Financial Corp. of LA........ 131 42.66 0.13 1.38 3.88 1.36 3.80
MERI Meritrust FSB of Thibodaux LA(7) 234 8.49 0.35 1.18 14.53 1.18 14.53
TSH Teche Holding Company of LA..... 409 13.54 0.38 0.97 7.28 0.93 6.95
Comparable Group
- ----------------
ANA Acadiana Bancshares, Inc. of LA. 274 16.95 0.50 0.98 5.64 0.95 5.46
ETFS East Texas Fin. Serv. of TX..... 120 17.47 0.33 0.63 3.48 0.59 3.24
FFDB FirstFed Bancorp. Inc. of AL.... 179 9.69 1.42 0.96 9.89 0.96 9.89
GUPB GFSB Bancorp, Inc of Gallup NM.. 115 12.50 0.24 0.89 6.08 0.89 6.08
GSLA GS Financial Corp. of LA........ 131 42.66 0.13 1.38 3.88 1.36 3.80
SSFC South Street Fin. Corp. of NC... 228 14.90 0.16 0.85 3.61 0.87 3.69
SZB SouthFirst Bancshares of AL..... 165 9.67 1.28 0.56 4.44 0.57 4.51
SRN Southern Banc Company of AL..... 106 17.08 NA 0.48 2.77 0.48 2.77
TSH Teche Holding Company of LA..... 409 13.54 0.38 0.97 7.28 0.93 6.95
TWIN Twin City Bancorp. Inc. of TN... 109 12.89 0.09 1.01 7.87 0.83 6.48
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) EPS (core basis) is based on actual trailing twelve month data, adjusted
to omit the impact of non-operating items (including the SAIF
assessment) on a tax effected basis, and is shown on a pro forma basis
where appropriate.
(3) P/E - Price to Earnings; P/B = Price to Book; P/A = Price to Assets;
P/TB = Price to Tangible Book; and P/CORE = Price to Core Earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend
declared.
(5) Indicated twelve month dividend as a percent of trailing twelve month
estimated core earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and total assets balances.
(7) Excludes from averages and medians those companies the subject of actual
or rumored acquisition activities or unusual operating characteristics.
Source: Corporate reports, offering circulars, and RP financial, Inc.
calculations. The information provided in this report has been
obtained from sources we believe are reliable, but we cannot
guarantee the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
EXHIBITS
<PAGE>
RP FINANCIAL, LC.
LIST OF EXHIBITS
Exhibit
Number Description
- ------- -----------
I-1 Map of Office Locations
I-2 Audited Financial Statements
I-3 Key Operating Ratios
I-4 Investment Portfolio Composition
I-5 Yields and Costs
I-6 Loan Loss Allowance Activity
I-7 NPV Analysis
I-8 Fixed Rate and Adjustable Rate Loans
I-9 Loan Portfolio Composition
I-10 Loan Originations, Purchases, and Sales
I-11 Contractual Maturity By Loan Type
I-12 Non-Performing Assets
I-13 Deposit Composition
I-14 Time Deposit Rate/Maturity
I-15 Borrowings
II-1 Description of Office Facilities
II-2 Historical Interest Rates
III-1 General Characteristics of Publicly-Traded Institutions
III-2 Financial Analysis of Louisiana Institutions
<PAGE>
RP FINANCIAL, LC.
LIST OF EXHIBITS (CONTINUED)
III-3 Financial Analysis of Southeast and Southwest Institutions
III-4 Peer Group Market Area Comparative Analysis
IV-1 Stock Prices: As of March 20, 1998
IV-2 Historical Stock Price Indices
IV-3 Historical Thrift Stock Indices
IV-4 Market Area Acquisition Activity
IV-5 Director and Senior Management Summary Resumes
IV-6 Pro Forma Regulatory Capital Ratios
IV-7 Pro Forma Analysis Sheet
IV-8 Pro Forma Effect of Conversion Proceeds
IV-9 Peer Group Core Earnings Analysis
V-1 Firm Qualifications Statement
<PAGE>
EXHIBIT I-1
Ponchatoula Homestead Savings, F.A.
Map of Office Locations
<PAGE>
[Ponchatoula Homestead
Branch Locations
MAP]
<PAGE>
EXHIBIT I-2
Ponchatoula Homestead Savings, F.A.
Audited Financial Statements
[Incorporated by Reference]
<PAGE>
EXHIBIT I-3
Ponchatoula Homestead Savings, F.A.
Key Operating Ratios
<TABLE>
<CAPTION>
At or For the Year Ended December 31,
-------------------------------------------------------------------------------
1997 1996 1995 1994 1993
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Selected Ratios (3):
Return on average assets...................... .53% .25% .57% .92% .91%
Return on average equity...................... 5.67 2.63 5.85 11.04 13.28
Average equity to average assets.............. 9.40 9.50 9.78 8.29 6.32
Equity to assets at end of period............. 9.63 8.97 9.64 9.53 7.43
Interest rate spread(4)....................... 2.65 2.54 2.73 3.20 2.92
Net interest margin(4)........................ 3.00 2.95 3.12 3.43 3.12
Non-performing loans and leases to total
loans and leases at end of period(5)........ .55 1.38 1.66 2.60 4.12
Non-performing assets to total assets at
end of period(5)............................ .29 .83 .76 1.53 3.09
Average interest-earning assets to
average interest-bearing liabilities........ 108.26 109.01 108.75 107.02 105.38
Net interest income after provision for
(recovery of) loan and lease losses to
total noninterest expenses.................. 107.90 88.06 105.16 114.97 98.79
Noninterest expenses to average total
assets...................................... 2.73 3.27 2.91 2.92 3.10
Dividend payout ratio(6)...................... 134.49 211.64 77.67 13.45 N/A
</TABLE>
- ----------------------
(1) Includes cash and due from banks as well as interest-bearing deposits in
other institutions.
(2) The per share amounts do not reflect the Conversion or the Exchange Ratio.
(3) With the exception of end of period ratios, all ratios are based on
average monthly balances during 1997, 1996 and 1995 and average quarterly
balances during the prior years.
(4) Interest rate spread represents the difference between the average yield
on interest-earning assets and the average rate on interest-bearing
liabilities. Net interest margin represents net interest income as a
percentage of average interest-earning assets.
(5) Non-performing loans and leases consist of non-accrual loans and leases,
and non-performing assets consist of non-performing loans and leases and
real estate acquired by foreclosure or deed-in lieu thereof.
(6) Ratio based upon total dividends declared, including dividends waived by
the Mutual Holding Company.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-4
Ponchatoula Homestead Savings, F.A.
Investment Portfolio Composition
The following table sets forth the composition of Ponchatoula's
mortgage-backed securities portfolio at each of the dates indicated.
<TABLE>
<CAPTION>
December 31,
-----------------------------------
1997 1996 1995
------- ------- -------
(In Thousands)
<S> <C> <C> <C>
Mortgage-backed
securities held to maturity:
FNMA............................... $ 6,712 $ 6,931 $ 5,201
FHLMC.............................. 2,543 3,323 1,058
GNMA............................... 1,046 -- --
------- ------- -------
Subtotal......................... 10,301 10,254 6,259
------- ------- -------
Mortgage-backed securities
available for sale:
FNMA............................... $ 7,115 $ 7,908 $ 6,885
FHLMC.............................. 6,911 8,278 9,565
GNMA............................... 235 286 342
------- ------- -------
Subtotal......................... 14,261 16,472 16,792
------- ------- -------
Total $24,562 $26,726 $23,051
------- ------- -------
------- ------- -------
</TABLE>
The following table sets forth certain information relating to
Ponchatoula's investment securities portfolio at the dates indicated.
<TABLE>
<CAPTION>
December 31,
------------------------------------------------------------
1996 1995
------------------------------ ---------------------------
Amortized Fair Amortized Fair Amortized Fair
Cost Value Cost Value Cost Value
--------- ------ --------- ------ --------- ------
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
U.S. agency securities....... $2,595 $2,605 $2,396 $2,399 $2,403 $2,415
</TABLE>
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-5
Ponchatoula Homestead Savings, F.A.
Yields and Costs
<TABLE>
<CAPTION>
1997 1996 1995
---------------------------- ---------------------------- ---------------------------
Average Yield/ Average Yield/ Average Yield/
Balance Interest Rate(1) Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- ------ ------- -------- ------
(Dollars In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest earnings assets
Loans and leases receivable(2)...... $28,403 $2,429 8.55% $27,597 $2,384 8.64% $27,129 $2,348 8.65%
Mortgage-backed securities.......... 25,246 1,576 6.24 24,861 1,621 6.52 20,986 1,353 6.45
Investment securities............... 2,469 145 5.87 2,293 155 6.76 2,356 138 5.86
Other interest-earning assets....... 1,621 97 5.98 2,328 116 4.98 2,319 149 6.43
------- ------ ---- ------- ------ ---- ------- ------ ----
Total interest-earning assets..... 57,739 4,247 7.36 57,079 4,276 7.49 52,790 3,988 7.59
------ ---- ------ ---- ------ ----
Noninterest-earning assets............ 1,591 1,278 1,279
------- ------- -------
Total assets...................... $59,330 $58,357 $54,069
------- ------- -------
------- ------- -------
Interest bearing liabilities:
Deposits............................ $43,607 1,971 4.52 $44,733 2,158 4.82 $42,980 2,007 4.67
FHLB advances 9,755 544 5.58 7,630 433 5.67 5,562 335 6.02
------- ------ ---- ------- ------ ---- ------- ------ ----
Total interest-bearing
liabilities..................... 53,362 2,515 4.71 52,363 2,591 4.95 48,542 2,342 4.82
------ ---- ------ ---- ------ ----
Noninterest bearing liabilities....... 391 452 241
------- ------- -------
Total liabilities................. 53,753 52,815 48,783
Stockholders' equity.................. 5,577 5,542 5,286
------- ------- -------
Total liabilities and
stockholders' equity............ $59,330 $58,357 $54,069
------- ------- -------
------- ------- -------
Net interest income, average
interest rate spread................ $ 1,732 2.65% $1,685 2.54% $1,646 2.73%
------ ---- ------ ---- ------ ----
------ ---- ------ ---- ------ ----
Net interest margin(3)................ 3.00% 2.95% 3.12%
---- ---- ----
---- ---- ----
Average interest-earning assets to
average interest-bearing
liabilities......................... 108.20% 109.02% 108.75%
------ ------ ------
------ ------ ------
</TABLE>
- --------------------
(1) At December 31, 1997, the weighted average yields earned and rates paid
were as follows: loans and leases receivable, 7.99%; mortgage-backed
securities, 6.40%; investment securities, 6.02%; other interest-earning
assets, 5.68%, total interest-earning assets, 7.55%; deposits, 4.52%; FHLB
advances, 5.85; total interest-bearing liabilities, 4.90%; and average
interest rate spread, 2.65%.
(2) Includes loans classified as held for sale.
(3) Equals net interest income divided by average interest-earning assets.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-6
Ponchatoula Homestead Savings, F.A.
Loan Loss Allowance Activity
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------
1997 1996 1995
------- ------- -------
(Dollars in thousands)
<S> <C> <C> <C>
Total loans and leases outstanding
at end of period(1)......................... $31,462 $30,460 $29,373
------- ------- -------
------- ------- -------
Average loans and leases outstanding(1)....... $28,403 $27,597 $27,129
------- ------- -------
------- ------- -------
Balance at beginning of period................ 282 280 288
Charge-offs................................... 1 1 2
Recoveries.................................... -- -- --
------- ------- -------
Net charge-offs............................... 1 1 2
Recovery of allowance for losses.............. (16) 3 (6)
------- ------- -------
Balance at end of period...................... $ 265 $ 282 $ 280
------- ------- -------
------- ------- -------
Allowance for loan and lease
losses as a percent of total loans
and leases outstanding...................... .84% .93% .95%
------- ------- -------
------- ------- -------
Ratio of net charge-offs to average loans
and leases outstanding...................... .00% .00% .01%
------- ------- -------
------- ------- -------
</TABLE>
- -----------------
(1) Total and average loans outstanding include loans classified as held for
sale at or during the respective dates or periods.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-7
Ponchatoula Homestead Savings, F.A.
N.P.V. Analysis
<TABLE>
<CAPTION>
Change in Change in
Interest Rates Net Portfolio Value NPV as % of NVP as % of
in Basis Points -------------------------------------------- Portfolio Value Portfolio Value
(Rate Shock) Amount $ Change % Change of Assets of Assets(1)
- ---------------- ---------- ---------- ------------ ---------------- ----------------
<S> <C> <C> <C> <C> <C>
400 $4,591 $(2,047) (30.8)% 8.0% (3.4)%
300 5,345 (1,293) (19.5) 9.1 (2.1)
200 5,946 (692) (10.4) 10.0 (1.1)
100 6,385 (253) (3.8) 10.6 (.4)
Static 6,638 -- -- 11.0 --
(100) 6,764 126 1.9 11.1 .2
(200) 6,854 216 3.3 11.2 .4
(300) 7,039 401 6.0 11.5 .7
(400) 7,368 730 11.0 11.9 1.2
</TABLE>
- ----------------------
(1) Based on the portfolio value of Ponchatoula's assets assuming no change
in interest rates.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-8
Ponchatoula Homestead Savings, F.A.
Fixed Rate and Adjustable Rate Loans
<TABLE>
<CAPTION>
Fixed Floating or
Rates Adjustable Rates Total
------- ----------------- -------
(In Thousands)
<S> <C> <C> <C>
Single-family residential loans...... $10,596 $9,448 $20,044
Single-family residential leases..... 142 81 223
Commercial real estate loans
and leases......................... 521 77 598
Land loans........................... -- 124 124
Consumer loans....................... 5,755 115 5,870
------- ------ -------
Total........................... $17,014 $9,845 $26,859
------- ------ -------
------- ------ -------
</TABLE>
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-9
Ponchatoula Homestead Savings, F.A.
Loan Portfolio Composition
<TABLE>
<CAPTION>
December 31,
-------------------------------------------------------------------------------
1997 1996 1995
------------------------ ----------------------- -----------------------
Amount % Amount % Amount %
---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Real estate loans:
Single-family residential(1) ............... $ 20,111 63.9% $ 19,159 62.9% $ 17,666 60.1%
Construction(2) ............................ 3,228 10.3 3,820 12.5 3,041 10.3
Commercial real estate ..................... 521 1.6 52 .2 56 .2
Land ....................................... 126 .4 158 .5 197 .7
---------- ---------- ---------- ---------- ---------- ----------
Total real estate loans .................. 23,986 76.2 23,189 76.1 20,960 71.3
---------- ---------- ---------- ---------- ---------- ----------
Consumer loans:
Home equity and improvement ................ 4,411 14.0 4,275 14.0 3,517 12.0
Loans secured by savings accounts .......... 824 2.6 841 2.8 870 3.0
Automobile ................................. 611 2.0 414 1.4 419 1.4
Mobile home ................................ 257 .8 182 .6 87 .3
Other ...................................... 1,072 3.4 1,100 3.6 1,157 3.9
---------- ---------- ---------- ---------- ---------- ----------
Total consumer loans ..................... 7,175 22.8 6,812 22.4 6,050 20.6
---------- ---------- ---------- ---------- ---------- ----------
Total loans .............................. 31,161 99.1 30,001 98.5 27,010 91.9
---------- ---------- ---------- ---------- ---------- ----------
Leases receivable(3):
Single-family residential leases ........... 224 .7 380 1.2 2,285 7.8
Commercial real estate leases .............. 77 .3 79 .3 78 .3
---------- ---------- ---------- ---------- ---------- ----------
Total leases ............................. 301 1.0 459 1.5 2,363 8.1
---------- ---------- ---------- ---------- ---------- ----------
Total loans and leases ................... 31,462 100.0% 30,460 100.0% 29,373 100.0%
---------- ---------- ----------
---------- ---------- ----------
Less:
Loans in process ........................... 1,706 1,721 1,450
Deferred loan origination fees ............. 8 17 17
Allowance for loan and lease losses ........ 265 282 280
---------- ---------- ----------
Net loans and leases ................... $ 29,483 $ 28,440 $ 27,626
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
- --------------------------
(1) At December 31, 1997, 1996 and 1995, includes $318,000, $699,000 and
$440,000 of loans classified as held for sale, respectively, and second
mortgages of $164,000, $317,000 and $398,000, respectively.
(2) At December 31, 1997, 1996 and 1995, includes $1.1 million, $1.6 million
and $1.3 million of loans classified as held for sale, respectively.
Consists solely of single-family residential construction loans.
(3) Consists of bond for deed contracts in which Ponchatoula retains title to
the property until all payments are made on the contract.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-10
Ponchatoula Homestead Savings, F.A.
Loan Originations, Purchases and Sales
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------
1997 1996 1995
-------- -------- --------
(In Thousands)
<S> <C> <C> <C>
Loan and lease originations:
Single-family residential:
Loans for portfolio......................... $ 4,348 $ 4,393 $ 3,678
Loans for sale.............................. 7,835 10,464 7,018
Leases...................................... -- -- 100
Construction(1)............................... 941 1,450 927
Commercial real estate........................ 474 -- --
Consumer...................................... 4,007 4,106 3,478
-------- -------- --------
Total loans and leases originated........... 17,605 20,413 15,201
-------- -------- --------
Sales and principal reductions:
Loans sold.................................... 8,711 9,940 6,527
Loan principal reductions..................... 7,652 9,747 8,758
Lease principal reductions.................... 158 185 322
-------- -------- --------
Total loans sold and principal reductions... 16,521 19,872 15,607
-------- -------- --------
Increase (decrease) due to other items, net(2).. (41) 273 1,286
-------- -------- --------
Net increase in loan portfolio.................. $ 1,043 $ 814 $ 880
-------- -------- --------
-------- -------- --------
</TABLE>
- -------------
(1) Consists solely of single-family residential construction loans.
(2) Other items, net include the increase relating to loans in process,
deferred loan origination fees and the allowance for loan and lease losses.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-11
Ponchatoula Homestead Savings, F.A.
Contractual Maturity By Loan Type
<TABLE>
<CAPTION>
Due More
Due 3-5 Due 5-10 Due 10-15 Than 15
Years After Years After Years After Years After
1998 1999 2000 12/31/97 12/31/97 12/31/97 12/31/97 Total
---- ---- ---- ----------- ----------- ----------- ----------- -----
(In Thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Simple family
residential loans $67 $42 $145 $340 $2,401 $14,403 $2,713 $20,111
Simple family
residential leases 1 3 -- 7 97 81 35 224
Commercial real estate
loans and leases -- 255 -- -- 47 219 77 598
Construction loans 3,228 -- -- -- -- -- -- 3,228
Land loans 2 5 6 3 110 -- -- 126
Consumer loans 1,305 324 641 1,097 797 3,011 -- 7,175
----- --- --- ----- ----- ------ ----- ------
Total(l) $4,603 $629 $792 $1,447 $3,452 $17,714 $2,825 $11,462
----- --- --- ----- ----- ------ ----- ------
----- --- --- ----- ----- ------ ----- ------
</TABLE>
(l) Gross of loans in process, deferred loan origination fees
and the allowance for loan and lease losses.
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-12
Ponchatoula Homestead Savings, F.A.
Non-Performing Assets
<TABLE>
<CAPTION>
December 31,
----------------------------------------------
1997 1996 1995
---------- ---------- ---------
(Dollars in Thousands)
<S> <C> <C> <C>
Non-accruing loans and leases:
Single-family residential(1) $ 169 $ 350 $ 434
Consumer 4 15 --
--- --- ---
Total non-accruing loans
and leases 173 365 434
Real estate owned -- 141 --
--- --- ---
Total non-performing assets $ 173 $ 506 $ 434
--- --- ---
--- --- ---
Total non-performing loans and
leases as a percentage of
total loans and leases .55% 1.38% 1.66%
---- ---- ----
---- ---- ----
Total non-performing assets as a
percentage of total assets .29% .83% .76%
---- ---- ----
---- ---- ----
______________________
</TABLE>
(1) Includes $0, $62,000, and $104,000 of single-family residential leases
at December 31, 1997, 1996 and 1995, respectively
<PAGE>
EXHIBIT I-13
Ponchatoula Homestead Savings, F.A.
Deposit Composition
<TABLE>
<CAPTION>
December 31,
----------------------------------------------------------------------------
1997 1996 1995
------------------------ ------------------------ ------------------------
Amount % Amount % Amount %
------------ ---------- ----------- ----------- ----------- -----------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C>
Certificate accounts:
2.00% - 3.99%.................. $ 285 .7% $ 551 1.2% $ 845 1.9%
4.00% - 5.99%.................. 30,031 71.4 30,686 69.1 10,519 23.3
6.00% - 7.99%.................. 1,117 2.6 882 2.0 20,211 45.1
8.00% - 9.99%.................. -- -- 42 .1 363 .8
------- ----- ------- ------ ------- ------
Total certificate
accounts................... 31,433 74.7 32,161 72.4 31,938 71.1
------- ----- ------- ------ ------- ------
Transaction accounts:
Passbook accounts.............. 8,253 19.6 9,592 21.6 10,170 22.7
Money market accounts.......... 934 2.2 1,032 2.3 1,197 2.7
NOW accounts................... 1,491 3.5 1,642 3.7 1,584 3.5
------- ----- ------- ------ ------- ------
Total transaction accounts... 10,678 25.3 12,266 27.6 12,951 28.9
------- ----- ------- ------ ------- ------
Total deposits................... $42,111 100.0% $44,427 100.0% $44,889 100.0%
------- ----- ------- ------ ------- ------
------- ----- ------- ------ ------- ------
</TABLE>
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-14
Ponchatoula Homestead Savings, F.A.
Time Deposit Rate/Maturity
<TABLE>
<CAPTION>
Maturity Date
---------------------------------------------------------
One Year Over 1 Over 2 Over
or Less to 2 Years to 3 Years 3 Years Total
-------- ---------- ---------- ------- --------
(In Thousands)
<S> <C> <C> <C> <C> <C>
2.00% - 3.99%......................... $ 226 $ 30 $ 3 $ 26 $ 285
4.00% - 5.99%......................... 28,282 1,502 125 122 30,031
6:00% - 7.99%......................... 100 530 231 256 1,117
-------- ---------- ---------- ------- --------
Total............................... $28,608 $2,062 $359 $404 $31,433
-------- ---------- ---------- ------- --------
-------- ---------- ---------- ------- --------
</TABLE>
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT I-15
Ponchatoula Homestead Savings, F.A.
Borrowings
<TABLE>
<CAPTION>
At or for the Year Ended December 31,
-------------------------------------
1997 1996 1995
---- ---- ----
(Dollars in Thousands)
<S> <C> <C> <C>
FHLB advances:
Average balance outstanding............ $ 9,755 $ 7,630 $5,562
Maximum amount outstanding at any
month-end during the period........... $11,500 $10,700 $7,000
Balance outstanding at end of period... $11,500 $10,700 $6,500
Average interest rate during the
period................................ 5.58% 5.67% 6.02%
Weighted average interest rate at end
of period............................. 5.85% 5.48% 5.81%
</TABLE>
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT II-1
Ponchatoula Homestead Savings, F.A.
Description of Office Facilities
<TABLE>
<CAPTION>
Net Book Value
Description/Address Leased/Owned of Property Deposits
- ------------------- ------------ -------------- --------
(In Thousands)
<S> <C> <C> <C>
Home Office:
195 North Sixth Street
Ponchatoula, LA 70454..... Owned $393,000 $35,494
Branch Office:
111 North Bay Street
Amite, LA 70422........... Owned $101,000 $ 6,616
</TABLE>
Source: Ponchatoula Savings' prospectus
<PAGE>
EXHIBIT II-2
Historical Interest Rates
<PAGE>
Exhibit II-2
Historical Interest Rates(1)
<TABLE>
<CAPTION>
Prime 90 Day One Year 30 Year
Year/Qtr. Ended Rate T-Bill T-Bill T-Bond
- ----------------------------- ----- ------ -------- -------
<S> <C> <C> <C> <C>
1991: Quarter 1............. 8.75% 5.92% 6.24% 8.26%
Quarter 2............. 8.50% 5.72% 6.35% 8.43%
Quarter 3............. 8.00% 5.22% 5.38% 7.80%
Quarter 4............. 6.50% 3.95% 4.10% 7.47%
1992: Quarter 1............. 6.50% 4.15% 4.53% 7.97%
Quarter 2............. 6.50% 3.65% 4.06% 7.79%
Quarter 3............. 6.00% 2.75% 3.06% 7.38%
Quarter 4............. 6.00% 3.15% 3.59% 7.40%
1993: Quarter 1............. 6.00% 2.95% 3.18% 6.93%
Quarter 2............. 6.00% 3.09% 3.45% 6.67%
Quarter 3............. 6.00% 2.97% 3.36% 6.03%
Quarter 4............. 6.00% 3.06% 3.59% 6.34%
1994: Quarter 1............. 6.25% 3.56% 4.44% 7.09%
Quarter 2............. 7.25% 4.22% 5.49% 7.61%
Quarter 3............. 7.75% 4.79% 5.94% 7.82%
Quarter 4............. 8.50% 5.71% 7.21% 7.88%
1995: Quarter 1............. 9.00% 5.86% 6.47% 7.43%
Quarter 2............. 9.00% 5.57% 5.63% 6.63%
Quarter 3............. 8.75% 5.42% 5.68% 6.51%
Quarter 4............. 8.50% 5.09% 5.14% 5.96%
1996: Quarter 1............. 8.25% 5.14% 5.38% 6.67%
Quarter 2............. 8.25% 5.16% 5.68% 6.87%
Quarter 3............. 8.25% 5.03% 5.69% 6.92%
Quarter 4............. 8.25% 5.18% 5.49% 6.64%
1997: Quarter 1............. 8.50% 5.32% 6.00% 7.10%
Quarter 2............. 8.50% 5.17% 5.66% 6.78%
Quarter 3............. 8.50% 5.10% 5.44% 6.40%
Quarter 4............. 8.50% 5.34% 5.48% 5.92%
March 20, 1998............... 8.50% 5.17% 5.34% 5.88%
</TABLE>
(1) End of period data.
Source: SNL Securities.
<PAGE>
EXHIBIT II-2
Historical Interest Rates
<PAGE>
Exhibit II-2
Historical Interest Rates(1)
<TABLE>
<CAPTION>
Prime 90 Day One Year 30 Year
Year/Qtr. Ended Rate T-Bill T-Bill T-Bond
- ----------------------------- ----- ------ -------- -------
<S> <C> <C> <C> <C>
1991: Quarter 1............. 8.75% 5.92% 6.24% 8.26%
Quarter 2............. 8.50% 5.72% 6.35% 8.43%
Quarter 3............. 8.00% 5.22% 5.38% 7.80%
Quarter 4............. 6.50% 3.95% 4.10% 7.47%
1992: Quarter 1............. 6.50% 4.15% 4.53% 7.97%
Quarter 2............. 6.50% 3.65% 4.06% 7.79%
Quarter 3............. 6.00% 2.75% 3.06% 7.38%
Quarter 4............. 6.00% 3.15% 3.59% 7.40%
1993: Quarter 1............. 6.00% 2.95% 3.18% 6.93%
Quarter 2............. 6.00% 3.09% 3.45% 6.67%
Quarter 3............. 6.00% 2.97% 3.36% 6.03%
Quarter 4............. 6.00% 3.06% 3.59% 6.34%
1994: Quarter 1............. 6.25% 3.56% 4.44% 7.09%
Quarter 2............. 7.25% 4.22% 5.49% 7.61%
Quarter 3............. 7.75% 4.79% 5.94% 7.82%
Quarter 4............. 8.50% 5.71% 7.21% 7.88%
1995: Quarter 1............. 9.00% 5.86% 6.47% 7.43%
Quarter 2............. 9.00% 5.57% 5.63% 6.63%
Quarter 3............. 8.75% 5.42% 5.68% 6.51%
Quarter 4............. 8.50% 5.09% 5.14% 5.96%
1996: Quarter 1............. 8.25% 5.14% 5.38% 6.67%
Quarter 2............. 8.25% 5.16% 5.68% 6.87%
Quarter 3............. 8.25% 5.03% 5.69% 6.92%
Quarter 4............. 8.25% 5.18% 5.49% 6.64%
1997: Quarter 1............. 8.50% 5.32% 6.00% 7.10%
Quarter 2............. 8.50% 5.17% 5.66% 6.78%
Quarter 3............. 8.50% 5.10% 5.44% 6.40%
Quarter 4............. 8.50% 5.34% 5.48% 5.92%
March 20, 1998............... 8.50% 5.17% 5.34% 5.88%
</TABLE>
(1) End of period data.
Source: SNL Securities.
<PAGE>
EXHIBIT III-1
General Characteristics of Publicly-Traded Institutions
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California Companies
--------------------
AHM Ahmanson and Co. H.F. of CA NYSE Nationwide M.B. 46,679 371 12-31 10/72 78.75 7,336
GDW Golden West Fin. Corp. of CA NYSE Nationwide M.B. 39,590 249 12-31 05/59 97.81 5,582
GSB Golden State Bancorp of CA NYSE California Div. 16,029 178 06-30 10/83 37.81 1,929
DSL Downey Financial Corp. of CA NYSE Southern CA Thrift 5,836 85 12-31 01/71 32.06 858
BPLS Bank Plus Corp. of CA OTC Los Angeles CA R.E. 4,168 37 12-31 / 15.25 295
FED FirstFed Fin. Corp. of CA NYSE Los Angeles CA R.E. 4,160 24 12-31 12/83 39.88 422
WES Westcorp Inc. of Orange CA NYSE California Div. 3,729 26 12-31 05/86 19.13 503
BVCC Bay View Capital Corp. of CA OTC San Francisco CA M.B. 3,246 37 12-31 05/86 35.75 432
PFFB PFF Bancorp of Pomona CA OTC Southern CA Thrift 2,766 23 03-31 03/96 20.44 367
CENF CENFED Financial Corp. of CA OTC Los Angeles CA Thrift 2,209 18 12-31 10/91 45.25 272
HEMT HF Bancorp of Hemet CA OTC Southern CA Thrift 1,063 19 06-30 06/95 17.00 107
REDF RedFed Bancorp of Redlands CA OTC Southern CA Thrift 1,010 14 12-31 04/94 19.88 144
HTHR Hawthorne Fin. Corp. of CA OTC Southern CA Thrift 928 6 12-31 / 19.44 60
ITLA ITLA Capital Corp of CA (3) OTC Los Angeles CA R.E. 902 S 6 12-31 10/95 21.25 167
QCBC Quaker City Bancorp of CA OTC Los Angeles CA R.E. 852 8 06-30 12/93 22.63 106
PROV Provident Fin. Holdings of CA OTC Southern CA M.B. 724 10 06-30 06/96 24.25 114
HBNK Highland Bancorp of CA OTC Los Angeles CA R.E. 550 7 12-31 / 36.50 85
LFCO Life Financial Corp of CA OTC Southern CA Thrift 412 5 12-31 / 19.50 128
MBBC Monterey Bay Bancorp of CA OTC West Central CA Thrift 408 7 12-31 02/95 22.00 71
SGVB SGV Bancorp of W. Covina CA OTC Los Angeles CA Thrift 408 8 06-30 06/95 17.50 41
BYFC Broadway Fin. Corp. of CA OTC Los Angeles CA Thrift 125 S 3 12-31 01/96 12.50 10
Florida Companies
-----------------
OCN Ocwen Financial Corp. of FL NYSE Southeast FL Div. 3,069 1 12-31 / 28.38 1,719
BKUNA BankUnited Fin. Corp. of FL OTC Miami FL Thrift 3,029 16 09-30 12/85 13.88 197
BANC BankAtlantic Bancorp of FL OTC Southeastern FL M.B. 2,845 S 60 12-31 11/83 14.88 383
FFPB First Palm Beach Bancorp of FL OTC Southeast FL Thrift 1,821 47 09-30 09/93 37.50 190
HARB Harbor FL Bncp MHC of FL (46.1 OTC Eastern FL Thrift 1,129 23 09-30 01/94 75.50 376
FFFL Fidelity Bcsh MHC of FL (47.7) OTC Southeast FL Thrift 1,046 S 20 12-31 01/94 31.25 212
</TABLE>
<PAGE>
RP FINANCIAL, LC.
------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Florida Companies (continued)
-----------------------------
CMSV Commty. Svgs, MHC of FL (48.5) OTC Southeast FL Thrift 709 S 20 12-31 10/94 38.25 195
FFLC FFLC Bancorp of Leesburg FL OTC Central FL Thrift 400 9 12-31 01/94 19.75 74
Mid-Atlantic Companies
----------------------
DME Dime Bancorp, Inc. of NY (3) NYSE NY,NJ,FL M.B. 21,849 91 12-31 08/86 29.88 3,477
SVRN Sovereign Bancorp, Inc. of PA OTC PA,NJ,DE M.B. 14,336 150 12-31 08/86 21.88 2,045
GPT GreenPoint Fin. Corp. of NY (3) NYSE New York City NY Thrift 13,084 74 12-31 01/94 37.06 3,137
ASFC Astoria Financial Corp. of NY OTC New York City NY Thrift 10,528 61 12-31 11/93 61.88 1,621
LISB Long Island Bancorp, Inc of NY OTC Long Island NY M.B. 6,073 35 09-30 04/94 64.75 1,556
ALBK ALBANK Fin. Corp. of Albany NY OTC Upstate NY,MA,VT Thrift 4,083 108 12-31 04/92 49.25 636
ROSE T R Financial Corp. of NY (3) OTC New York City NY Thrift 3,843 15 12-31 06/93 35.50 625
RSLN Roslyn Bancorp, Inc. of NY (3) OTC Long Island NY M.B. 3,601 8 12-31 01/97 23.59 1,030
NYB New York Bancorp, Inc. of NY NYSE Southeastern NY Thrift 3,265 31 09-30 01/88 44.63 953
SIB Staten Island Bancorp of NY (3) NYSE New York City NY Thrift 2,651 16 12-31 12/97 20.94 945
CMSB Commonwealth Bancorp Inc of PA OTC Philadelphia PA M.B. 2,269 56 12-31 06/96 21.00 341
NWSB Northwest SB, MHC of PA (30.7) OTC Pennsylvania Thrift 2,249 58 06-30 11/94 17.00 796
RELY Reliance Bancorp, Inc. of NY OTC New York City NY Thrift 2,243 30 06-30 03/94 37.25 359
HARS Harris Fin. MHC of PA (24.3) OTC Harrisburg PA M.B. 2,201 33 12-31 01/94 24.75 836
HAVN Haven Bancorp of Woodhaven NY OTC New York City NY Thrift 1,975 33 12-31 09/93 24.63 216
QCSB Queens County Bancorp of NY (3) OTC New York City NY Thrift 1,603 11 12-31 11/93 42.13 628
JSB JSB Financial, Inc. of NY (3) NYSE New York City NY Thrift 1,531 S 13 12-31 06/90 54.38 539
WSFS WSFS Financial Corp. of DE (3) OTC Wilmington Div. 1,515 16 12-31 11/86 21.88 273
OCFC Ocean Fin. Corp. of NJ OTC Eastern NJ Thrift 1,511 10 12-31 07/96 36.56 287
DIME Dime Community Bancorp of NY (3) OTC New York City NY Thrift 1,488 15 06-30 06/96 24.13 300
PFSB PennFed Fin. Services of NJ OTC Northern NJ Thrift 1,476 18 06-30 07/94 18.50 178
YFED York Financial Corp. of PA OTC PA,MD Thrift 1,182 22 06-30 02/84 25.50 226
MFSL Maryland Fed. Bancorp of MD OTC Southern MD Thrift 1,175 S 27 02-28 06/87 37.88 245
RCBK Richmond County Fin Corp of NY (3) OTC New York City Thrift 1,125 P 0 02/98 17.94 439
FFIC Flushing Fin. Corp. of NY (3) OTC New York City NY Thrift 1,088 7 12-31 11/95 24.50 193
FSLA First SB SLA MHC of NJ (47.5) OTC Eastern NJ Thrift 1,049 17 12-31 07/92 44.38 356
PVSA Parkvale Financial Corp of PA OTC Southwestern PA Thrift 1,019 29 06-30 07/87 31.25 160
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-Atlantic Companies (continued)
- ----------------------------------
PWBC PennFirst Bancorp of PA OTC Western PA Thrift 911 11 12-31 06/90 19.31 102
PSBK Progressive Bank, Inc. of NY (3) OTC Southeast NY Thrift 884 17 12-31 08/84 43.50 167
PKPS Poughkeepsie Fin. Corp. of NY OTC Southeast NY Thrift 876 15 12-31 11/85 11.41 144
GAF GA Financial Corp. of PA AMEX Pittsburgh PA Thrift 784 13 12-31 03/96 19.00 147
MBB MSB Bancorp of Middletown NY (3) AMEX Southeastern NY Thrift 774 S 16 12-31 09/92 36.38 103
IBSF IBS Financial Corp. of NJ OTC Southwest NJ Thrift 728 10 09-30 10/94 21.19 232
SFIN Statewide Fin. Corp. of NJ OTC Northern NJ Thrift 703 S 16 12-31 10/95 22.75 104
FBBC First Bell Bancorp of PA OTC Pittsburgh PA Thrift 676 7 12-31 06/95 21.00 137
TSBS Peoples Bcrp, MHC of NJ (35.9) (3) OTC Central NJ Thrift 640 14 12-31 08/95 44.75 405
FSNJ Bayonne Banchsares of NJ OTC Northern NJ Thrift 611 4 03-31 08/97 14.81 134
THRD TF Financial Corp. of PA OTC PA, NJ Thrift 597 14 12-31 07/94 27.25 87
FMCO FMS Financial Corp. of NJ OTC Southern NJ Thrift 582 S 20 12-31 12/88 34.75 83
PULS Pulse Bancorp of S. River NJ OTC Central NJ Thrift 539 4 09-30 09/86 26.63 82
FSPG First Home Bancorp of NJ OTC NJ,DE Thrift 538 10 12-31 04/87 31.63 86
AHCI Ambanc Holding Co., Inc. of NY (3) OTC East-Central NY Thrift 529 S 12 12-31 12/95 19.13 82
PFNC Progress Financial Corp. of PA OTC Southeastern PA Thrift 493 10 12-31 07/83 18.38 75
LVSB Lakeview Financial of NJ OTC Northern NJ Thrift 473 8 07-31 12/93 25.28 98
CNY Carver Bancorp, Inc. of NY AMEX New York, NY Thrift 416 7 03-31 10/94 15.13 35
RARB Raritan Bancorp of Raritan NJ (3) OTC Central NJ Thrift 408 6 12-31 03/87 26.50 63
FSBI Fidelity Bancorp, Inc. of PA OTC Southwestern PA Thrift 393 8 09-30 06/88 30.75 48
FKFS First Keystone Fin. Corp of PA OTC Philadelphia PA Thrift 379 5 09-30 01/95 17.00 41
PBCI Pamrapo Bancorp, Inc. of NJ OTC Northern NJ Thrift 377 10 12-31 11/89 27.75 79
SHEN First Shenango Bancorp of PA OTC Western PA Thrift 375 4 12-31 04/93 41.94 87
FOBC Fed One Bancorp of Wheeling WV OTC Northern WV,OH Thrift 367 11 12-31 01/95 37.00 88
HARL Harleysville SB of PA OTC Southeastern PA Thrift 348 4 09-30 08/87 30.25 50
WSBI Warwick Community Bncrp of NY (3) OTC Southeast NY Thrift 340 P 4 05-31 12/97 17.63 113
YFCB Yonkers Fin. Corp. of NY OTC Yonkers NY Thrift 332 4 09-30 04/96 20.00 60
CVAL Chester Valley Bancorp of PA OTC Southeastern PA Thrift 326 7 06-30 03/87 35.25 76
LFBI Little Falls Bancorp of NJ OTC New Jersey Thrift 324 S 6 12-31 01/96 20.19 53
EQSB Equitable FSB of Wheaton MD OTC Central MD Thrift 322 4 09-30 09/93 31.50 38
FIBC Financial Bancorp, Inc. of NY OTC New York City NY Thrift 308 5 09-30 08/94 25.75 44
PHFC Pittsburgh Home Fin Corp of PA OTC Pittsburgh PA Thrift 300 9 09-30 04/96 17.88 35
CATB Catskill Fin. Corp. of NY (3) OTC Albany NY Thrift 295 4 09-30 04/96 17.88 83
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-Atlantic Companies (continued)
- ----------------------------------
WVFC WVS Financial Corp. of PA OTC Pittsburgh PA Thrift 292 5 06-30 11/93 38.75 68
LFED Leeds FSB, MHC of MD (36.3) OTC Baltimore MD Thrift 291 1 06-30 05/94 22.50 117
FBER 1st Bergen Bancorp of NJ OTC Northern NJ Thrift 290 4 12-31 04/96 20.75 59
WYNE Wayne Bancorp, Inc. of NJ OTC Northern NJ Thrift 270 5 12-31 06/96 28.75 58
WSB Washington SB, FSB of MD AMEX Southeastern MD Thrift 265 S 5 12-31 / 8.31 37
GDVS Greater DV SB,MHC of PA (19.9) OTC Southeast PA Thrift 260 7 12-31 03/95 31.75 104
SKAN Skaneateles Bancorp Inc of NY (3) OTC Northwest NY Thrift 256 9 12-31 06/86 19.38 28
IFSB Independence FSB of DC OTC Washington DC Ret. 252 S 2 12-31 06/85 17.63 23
SBFL SB Fngr Lakes MHC of NY (33.1) OTC Western NY Thrift 248 5 12-31 11/94 24.75 88
HRBF Harbor Federal Bancorp of MD OTC Baltimore MD Thrift 234 9 03-31 08/94 24.81 42
ESBK Elmira Svgs Bank (The) of NY (3) OTC NY,PA Thrift 231 6 12-31 03/85 28.66 21
PHSB Ppls Home SB, MHC of PA (45.0) OTC Western PA Thrift 218 9 12-31 07/97 19.75 55
LARL Laurel Capital Group of PA OTC Southwestern PA Thrift 213 6 06-30 02/87 21.63 47
PBHC Pathfinder BC MHC of NY (46.1) (3) OTC Upstate NY Thrift 197 5 12-31 11/95 22.25 64
PEEK Peekskill Fin. Corp. of NY OTC Southeast NY Thrift 184 3 06-30 12/95 16.88 53
PLSK Pulaski SB, MHC of NJ (46.0) OTC New Jersey Thrift 182 6 12-31 04/97 20.00 42
SFED SFS Bancorp of Schenectady NY OTC Eastern NY Thrift 174 4 12-31 06/95 23.75 29
AFED AFSALA Bancorp, Inc. of NY OTC Central NY Thrift 160 5 09-30 10/96 20.00 28
SKBO First Carnegie MHC of PA(45.0) OTC Western PA Thrift 144 3 03-31 04/97 19.50 45
PRBC Prestige Bancorp of PA OTC Southwestern PA Thrift 143 4 12-31 06/96 19.25 18
TPNZ Tappan Zee Fin., Inc. of NY OTC Southeast NY Thrift 125 S 1 03-31 10/95 20.25 30
GOSB GSB Financial Corp. of NY (3) OTC Southeast NY Thrift 116 2 09-30 07/97 17.13 39
AFBC Advance Fin. Bancorp of WV OTC Northern Neck WV Thrift 108 2 06-30 01/97 19.88 22
WHGB WHG Bancshares of MD OTC Baltimore MD Thrift 101 5 09-30 04/96 18.00 25
SHSB SHS Bancorp, Inc. of PA OTC Pittsburgh, PA Thrift 89 3 12-31 10/97 17.12 14
ALBC Albion Banc Corp. of Albion NY OTC Western NY Thrift 71 S 2 09-30 07/93 10.77 8
USAB USABancshares, Inc of PA (3) OTC Philadelphia PA Thrift 64 S 1 12-31 / 12.25 9
PWBK Pennwood Bancorp, Inc. of PA OTC Pittsburgh PA Thrift 47 3 06-30 07/96 18.75 10
Mid-West Companies
- ------------------
COFI Charter One Financial of OH OTC OH,MI,NY Div. 19,760 221 12-31 01/88 65.63 4,190
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-West Companies (continued)
- ------------------------------
CFB Commercial Federal Corp. of NE NYSE NE,CO,KS,OK,IA M.B. 7,189 108 06-30 12/84 35.25 1,149
SPBC St. Paul Bancorp, Inc. of IL OTC Chicago IL Div. 4,557 52 12-31 05/87 26.19 896
CTZN CitFed Bancorp of Dayton OH OTC Dayton OH M.B. 3,460 35 03-31 01/92 55.13 717
MAFB MAF Bancorp, Inc. of IL OTC Chicago IL Thrift 3,458 21 12-31 01/90 39.00 586
FLGS Flagstar Bancorp, Inc of MI OTC MI Thrift 2,033 S 19 12/31 / 23.38 320
ABCW Anchor Bancorp Wisconsin of WI OTC Wisconsin M.B. 1,941 35 03-31 07/92 44.50 403
DNFC D&N Financial Corp. of MI OTC Northern MI Ret. 1,815 37 12-31 02/85 27.75 252
FISB First Indiana Corp. of IN OTC Central IN M.B. 1,613 26 12-31 08/83 27.00 342
STFR St. Francis Cap. Corp. of WI OTC Milwaukee WI Thrift 1,598 23 09-30 06/93 46.50 244
FTFC First Fed. Capital Corp. of WI OTC Southern WI M.B. 1,544 49 12-31 11/89 31.50 290
ABCL Alliance Bancorp, Inc. of IL OTC Chicago IL M.B. 1,364 14 12-31 07/92 28.75 231
JSBA Jefferson Svgs Bancorp of MO OTC St. Louis MO,TX Thrift 1,258 S 32 12-31 04/93 27.00 270
AADV Advantage Bancorp, Inc. of WI OTC WI,IL Thrift 1,027 15 09-30 03/92 68.75 222
METF Metropolitan Fin. Corp. of OH OTC Northeast OH Thrift 925 15 12-31 / 16.63 117
OFCP Ottawa Financial Corp. of MI OTC Western MI Thrift 886 26 12-31 08/94 29.25 155
CFSB CFSB Bancorp of Lansing MI OTC Central MI Thrift 853 17 12-31 06/90 29.13 222
GSBC Great Southern Bancorp of MO OTC Southwest MO Thrift 750 25 06-30 12/89 25.75 208
NASB North American SB, FSB of MO OTC KS,MO M.B. 734 7 09-30 09/85 69.00 155
HOMF Home Fed Bancorp of Seymour IN OTC Southern IN Thrift 709 16 06-30 01/88 30.50 156
HMNF HMN Financial, Inc. of MN OTC Southeast MN Thrift 691 7 12-31 06/94 30.00 124
SFSL Security First Corp. of OH OTC Northeastern OH R.E. 678 14 03-31 01/88 22.50 170
FNGB First Northern Cap. Corp of WI OTC Northeast WI Thrift 668 19 12-31 12/83 13.50 119
MSBK Mutual SB, FSB of Bay City MI OTC Michigan M.B. 645 22 12-31 07/92 13.00 56
FFYF FFY Financial Corp. of OH OTC Youngstown OH Thrift 615 10 06-30 06/93 34.38 140
EMLD Emerald Financial Corp. of OH OTC Cleveland OH Thrift 604 14 12-31 / 22.00 112
HFFC HF Financial Corp. of SD OTC South Dakota Thrift 581 19 06-30 04/92 29.50 88
FDEF First Defiance Fin.Corp. of OH OTC Northwest OH Thrift 580 10 12-31 10/95 15.38 131
HFGI Harrington Fin. Group of IN OTC Eastern IN Thrift 545 4 06-30 / 11.13 36
AVND Avondale Fin. Corp. of IL OTC Chicago IL Ret. 542 5 12-31 04/95 15.13 50
FFOH Fidelity Financial of OH OTC Cincinnati OH Thrift 535 12 12-31 03/96 18.00 101
FCBF FCB Fin. Corp. of Neenah WI OTC Eastern WI Thrift 523 S 13 03-31 09/93 32.25 125
CAFI Camco Fin. Corp. of OH OTC Eastern OH M.B. 521 11 12-31 / 26.38 85
FBCI Fidelity Bancorp of Chicago IL OTC Chicago IL Thrift 490 5 09-30 12/93 25.00 70
</TABLE>
<PAGE>
RP FINANCIAL, LC.
------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-West Companies (continued)
------------------------------
CBCI Calumet Bancorp of Chicago IL OTC Chicago IL Thrift 487 5 12-31 02/92 36.75 115
FFSX First FSB MHC Sxld of IA(46.1) OTC Western IA Thrift 459 13 06-30 07/92 35.75 101
SFSB SuburbFed Fin. Corp. of IL OTC IL,IN Thrift 438 12 12-31 03/92 47.75 60
PERM Permanent Bancorp, Inc. of IN OTC Southwest IN Thrift 420 11 03-31 04/94 36.00 76
HALL Hallmark Capital Corp. of WI OTC Milwaukee WI Thrift 414 3 06-30 01/94 15.50 45
CASH First Midwest Fin., Inc. of OH OTC IA,SD R.E. 408 12 09-30 09/93 22.88 62
FFHH FSF Financial Corp. of MN OTC Southern MN Thrift 403 11 09-30 10/94 20.00 60
WOFC Western Ohio Fin. Corp. of OH OTC Western OH Thrift 397 S 10 12-31 07/94 26.00 61
PVFC PVF Capital Corp. of OH OTC Cleveland OH R.E. 396 9 06-30 12/92 24.00 64
PMFI Perpetual Midwest Fin. of IA OTC EastCentral IA Thrift 392 5 06-30 03/94 29.38 56
FMBD First Mutual Bancorp Inc of IL OTC Central IL Thrift 391 14 12-31 07/95 19.75 69
ASBI Ameriana Bancorp of IN OTC Eastern IN,OH Thrift 391 8 12-31 03/87 20.50 66
FFKY First Fed. Fin. Corp. of KY OTC Central KY Thrift 388 8 06-30 07/87 21.48 89
CBSB Charter Financial Inc. of IL OTC Southern IL Thrift 382 8 09-30 12/95 33.38 139
SWBI Southwest Bancshares of IL OTC Chicago IL Thrift 368 6 12-31 06/92 32.50 88
INBI Industrial Bancorp of OH OTC Northern OH Thrift 364 10 12-31 08/95 22.00 112
HBEI Home Bancorp of Elgin IL OTC Northern IL Thrift 353 4 12-31 09/96 17.63 121
HBFW Home Bancorp of Fort Wayne IN OTC Northeast IN Thrift 350 9 09-30 03/95 36.63 87
KNK Kankakee Bancorp, Inc. of IL AMEX Illinois Thrift 343 9 12-31 01/93 36.13 50
WFI Winton Financial Corp. of OH AMEX Cincinnati OH R.E. 324 S 5 09-30 08/88 28.50 57
WCBI WestCo Bancorp, Inc. of IL OTC Chicago IL Thrift 316 1 12-31 06/92 29.38 72
GFCO Glenway Financial Corp. of OH OTC Cincinnati OH Thrift 305 5 06-30 11/90 20.00 46
FSFF First SecurityFed Fin of IL OTC Chicago, IL Thrift 303 P 5 12-31 10/97 15.50 99
EFBI Enterprise Fed. Bancorp of OH OTC Cincinnati OH Thrift 301 5 09-30 10/94 33.00 66
PFDC Peoples Bancorp of Auburn IN OTC Northeastern IN Thrift 294 7 09-30 07/87 22.50 76
CBK Citizens First Fin.Corp. of IL AMEX Central IL Thrift 274 7 12-31 05/96 22.38 54
MFBC MFB Corp. of Mishawaka IN OTC Northern IN Thrift 264 5 09-30 03/94 26.25 43
FBCV 1st Bancorp of Vincennes IN OTC Southwestern IN M.B. 256 2 06-30 04/87 27.25 30
WAYN Wayne Svgs Bks MHC of OH (47.8 OTC Central OH Thrift 255 6 03-31 06/93 30.00 68
CAPS Capital Savings Bancorp of MO OTC Central MO Thrift 242 8 06-30 12/93 23.13 44
OHSL OHSL Financial Corp. of OH OTC Cincinnati, OH Thrift 239 5 12-31 02/93 33.75 42
HFBC HopFed Bancorp of KY OTC Southwest KY Thrift 237 P 5 09-30 02/98 17.25 70
LARK Landmark Bancshares, Inc of KS OTC Central KS Thrift 234 5 09-30 03/94 23.50 40
</TABLE>
<PAGE>
RP FINANCIAL, LC.
------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-West Companies (continued)
------------------------------
GFED Guaranty Fed Bancshares of MO OTC Southwest MO Thrift 231 4 06-30 12/97 12.63 79
FFHS First Franklin Corp. of OH OTC Cincinnati OH Thrift 231 7 12-31 01/88 26.50 32
EBI Equality Bancorp, Inc. of MO AMEX St Louis Thrift 229 3 03-31 12/97 15.50 39
MBLF MBLA Financial Corp. of MO OTC Northeast MO Thrift 224 2 06-30 06/93 27.50 35
MFFC Milton Fed. Fin. Corp. of OH OTC Southwest OH Thrift 219 3 09-30 10/94 16.13 37
BFFC Big Foot Fin. Corp. of IL OTC Chicago IL Thrift 216 3 06-30 12/96 23.25 58
FFED Fidelity Fed. Bancorp of IN OTC Southwestern IN Thrift 216 4 06-30 08/87 9.38 29
FFFD North Central Bancshares of IA OTC Central IA Thrift 215 S 4 12-31 03/96 22.44 73
MWFD Midwest Fed. Fin. Corp of WI OTC Central WI Thrift 212 S 9 12-31 07/92 30.75 50
CMRN Cameron Fin. Corp. of MO OTC Northwest MO Thrift 211 3 09-30 04/95 20.25 52
FFBZ First Federal Bancorp of OH OTC Eastern OH Thrift 209 6 09-30 07/92 25.00 39
LSBI LSB Fin. Corp. of Lafayette IN OTC Central IN Thrift 207 4 12-31 02/95 30.50 28
WEFC Wells Fin. Corp. of Wells MN OTC Southcentral MN Thrift 201 8 12-31 04/95 18.75 37
MARN Marion Capital Holdings of IN OTC Central IN Thrift 192 2 06-30 03/93 28.00 50
FFWC FFW Corporation of Wabash IN OTC Central IN Thrift 191 4 06-30 04/93 19.00 27
NEIB Northeast Indiana Bncrp of IN OTC Northeast IN Thrift 190 S 3 12-31 06/95 21.13 37
PULB Pulaski SB, MHC of MO (29.8) OTC St. Louis MO Thrift 179 S 5 09-30 05/94 50.25 105
PFED Park Bancorp of Chicago IL OTC Chicago IL Thrift 177 3 12-31 08/96 18.75 44
HMLK Hemlock Fed. Fin. Corp. of IL OTC Chicago IL Thrift 177 3 12-31 04/97 18.75 39
EGLB Eagle BancGroup of IL OTC Central IL Thrift 171 3 12-31 07/96 20.75 24
BWFC Bank West Fin. Corp. of MI OTC Southeast MI Thrift 170 3 06-30 03/95 14.38 38
JXSB Jcksnville SB,MHC of IL (45.6) OTC Central IL Thrift 168 4 12-31 04/95 23.25 44
FFWD Wood Bancorp of OH OTC Northern OH Thrift 167 7 06-30 08/93 20.00 53
FBSI First Bancshares, Inc. of MO OTC Southcentral MO Thrift 162 6 06-30 12/93 16.75 37
SMBC Southern Missouri Bncrp of MO OTC Southeast MO Thrift 160 8 06-30 04/94 21.75 35
QCFB QCF Bancorp of Virginia MN OTC Northeast MN Thrift 158 S 2 06-30 04/95 28.25 39
MWBI Midwest Bancshares, Inc. of IA OTC Southeast IA Thrift 148 4 12-31 11/92 16.00 16
GTPS Great American Bancorp of IL OTC East Central IL Thrift 142 3 12-31 06/95 21.00 35
RIVR River Valley Bancorp of IN OTC Southeast IN Thrift 138 S 6 12-31 12/96 19.50 23
MIFC Mid Iowa Financial Corp. of IA OTC Central IA Thrift 135 7 09-30 10/92 12.13 21
WEHO Westwood Hmstd Fin Corp of OH OTC Cincinnati OH Thrift 134 2 12-31 09/96 14.63 42
FKKY Frankfort First Bancorp of KY OTC Frankfort KY Thrift 133 3 06-30 07/95 16.75 27
CLAS Classic Bancshares, Inc. of KY OTC Eastern KY Thrift 132 S 3 03-31 12/95 20.25 26
</TABLE>
<PAGE>
RP FINANCIAL, LC.
------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-West Companies (continued)
------------------------------
NBSI North Bancshares of Chicago IL OTC Chicago IL Thrift 123 2 12-31 12/93 17.50 25
PTRS Potters Financial Corp of OH OTC Northeast OH Thrift 123 4 12-31 12/93 18.75 18
BDJI First Fed. Bancorp. of MN OTC Northern MN Thrift 119 5 09-30 04/95 20.00 20
HFSA Hardin Bancorp of Hardin MO OTC Western MO Thrift 115 3 03-31 09/95 18.88 16
FFSL First Independence Corp. of KS OTC Southeast KS Thrift 114 2 09-30 10/93 15.00 14
ASBP ASB Financial Corp. of OH OTC Southern OH Thrift 113 1 06-30 05/95 14.25 24
UCBC Union Community Bancorp of IN OTC W.Central IN Thrift 112 P 1 12-31 12/97 15.50 47
CBES CBES Bancorp, Inc. of MO OTC Western MO Thrift 111 2 06-30 09/96 25.25 26
HFFB Harrodsburg 1st Fin Bcrp of KY OTC Central KY Thrift 109 2 09-30 10/95 16.56 33
FTNB Fulton Bancorp, Inc. of MO OTC Central MO Thrift 108 2 06-30 10/96 21.88 38
DCBI Delphos Citizens Bancorp of OH OTC Northwest OH Thrift 108 1 09-30 11/96 21.25 41
PSFC Peoples Sidney Fin. Corp of OH OTC WestCentral OH Thrift 106 1 06-30 04/97 18.00 32
MONT Montgomery Fin. Corp. of IN OTC Westcentral IN Thrift 106 4 06-30 07/97 13.13 22
AMFC AMB Financial Corp. of IN OTC Northwest IN Thrift 100 4 12-31 04/96 17.63 17
FTSB Fort Thomas Fin. Corp. of KY OTC Northern KY Thrift 100 2 09-30 06/95 15.25 22
NWEQ Northwest Equity Corp. of WI OTC Northwest WI Thrift 100 3 03-31 10/94 21.63 18
CNSB CNS Bancorp, Inc. of MO OTC Central MO Thrift 98 5 12-31 06/96 18.25 30
CIBI Community Inv. Bancorp of OH OTC NorthCentral OH Thrift 96 3 06-30 02/95 18.00 16
INCB Indiana Comm. Bank, SB of IN OTC Central IN Ret. 95 4 06-30 12/94 21.13 19
WCFB Wbstr Cty FSB MHC of IA (45.2) OTC Central IA Thrift 95 1 12-31 08/94 20.88 44
GFSB GFS Bancorp of Grinnell IA OTC Central IA Thrift 95 1 06-30 01/94 17.88 18
THR Three Rivers Fin. Corp. of MI AMEX Southwest MI Thrift 94 S 4 06-30 08/95 22.00 18
HHFC Harvest Home Fin. Corp. of OH OTC Southwest OH Thrift 94 S 3 09-30 10/94 15.06 13
LXMO Lexington B&L Fin. Corp. of MO OTC West Central MO Thrift 92 1 09-30 06/96 16.63 19
FFDF FFD Financial Corp. of OH OTC Northeast OH Thrift 92 1 06-30 04/96 20.88 30
HZFS Horizon Fin'l. Services of IA OTC Central IA Thrift 89 3 06-30 06/94 16.25 14
SFFC StateFed Financial Corp. of IA OTC Des Moines IA Thrift 89 2 06-30 01/94 14.50 23
SOBI Sobieski Bancorp of S. Bend IN OTC Northern IN Thrift 88 3 06-30 03/95 21.25 16
KYF Kentucky First Bancorp of KY AMEX Central KY Thrift 86 2 06-30 08/95 14.00 18
LOGN Logansport Fin. Corp. of IN OTC Northern IN Thrift 86 1 12-31 06/95 17.50 22
PSFI PS Financial of Chicago IL OTC Chicago IL Thrift 86 S 1 12-31 11/96 14.13 31
PCBC Perry Co. Fin. Corp. of MO OTC EastCentral MO Thrift 85 1 09-30 02/95 23.25 19
PFFC Peoples Fin. Corp. of OH OTC Northeast OH Thrift 82 2 09-30 09/96 16.63 24
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-West Companies (continued)
- ------------------------------
MSBF MSB Financial, Inc of MI OTC Southcentral MI Thrift 77 2 06-30 02/95 17.00 21
HCFC Home City Fin. Corp. of OH OTC Southwest OH Thrift 72 1 06-30 12/96 18.63 17
CKFB CKF Bancorp of Danville KY OTC Central KY Thrift 63 1 12-31 01/95 20.50 18
NSLB NS&L Bancorp, Inc of Neosho MO OTC Southwest MO Thrift 58 2 09-30 06/95 17.50 12
MRKF Market Fin. Corp. of OH OTC Cincinnati OH Thrift 57 2 09-30 03/97 17.06 23
FLKY First Lancaster Bncshrs of KY OTC Central KY Thrift 50 1 06-30 07/96 15.13 14
CSBF CSB Financial Group Inc of IL OTC Centralia IL Thrift 49 S 2 09-30 10/95 13.75 12
RELI Reliance Bancshares Inc of WI OTC Milwaukee WI Thrift 45 1 06-30 04/96 8.88 23
HWEN Home Financial Bancorp of IN OTC Central IN Thrift 44 1 06-30 07/96 9.25 9
JOAC Joachim Bancorp, Inc. of MO OTC Eastern MO Thrift 34 1 03-31 12/95 16.25 12
New England Companies
- ---------------------
PBCT Peoples Bank, MHC of CT (40.1) (3) OTC Southwestern CT Div. 8,184 111 12-31 07/88 38.75 2,370
WBST Webster Financial Corp. of CT OTC Central CT Thrift 7,020 84 12-31 12/86 66.50 908
PHBK Peoples Heritage Fin Grp of ME (3) OTC ME,NH,MA Div. 6,795 141 12-31 12/86 46.75 1,297
CFX CFX Corp of Keene NH (3) AMEX NH,MA M.B. 2,874 43 12-31 02/87 30.94 745
EGFC Eagle Financial Corp. of CT OTC Western CT Thrift 2,157 30 09-30 02/87 55.56 362
SISB SIS Bancorp, Inc. of MA (3) OTC Central MA Div. 1,734 25 12-31 02/95 39.50 274
ANDB Andover Bancorp, Inc. of MA (3) OTC MA,NH M.B. 1,323 12 12-31 05/86 40.06 207
FESX First Essex Bancorp of MA (3) OTC MA,NH Div. 1,197 15 12-31 08/87 24.63 186
FAB FirstFed America Bancorp of MA AMEX MA,RI M.B. 1,160 13 03-31 01/97 20.25 176
AFCB Affiliated Comm BC, Inc of MA OTC MA Thrift 1,155 12 12-31 10/95 37.31 243
MDBK Medford Bancorp, Inc. of MA (3) OTC Eastern MA Thrift 1,136 16 12-31 03/86 43.00 195
FFES First Fed of E. Hartford CT OTC Central CT Thrift 983 12 12-31 06/87 40.00 108
BFD BostonFed Bancorp of MA AMEX Boston MA M.B. 975 10 12-31 10/95 22.19 122
DIBK Dime Financial Corp. of CT (3) OTC Central CT Thrift 958 11 12-31 07/86 30.25 156
MASB MassBank Corp. of Reading MA (3) OTC Eastern MA Thrift 925 15 12-31 05/86 51.00 182
MECH MECH Financial Inc of CT (3) OTC Hartford CT Thrift 892 14 12-31 06/96 29.00 153
PBKB People's Bancshares of MA (3) OTC Southeastern MA Thrift 717 S 14 12-31 10/86 26.00 86
NSSY NSS Bancorp of CT (3) OTC Southwest CT Thrift 671 S 8 12-31 06/94 42.63 103
BKC American Bank of Waterbury CT (3) AMEX Western CT Thrift 639 14 12-31 12/81 52.63 122
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
New England Companies (continued)
- ---------------------------------
MWBX MetroWest Bank of MA (3) OTC Eastern MA Thrift 609 12 12-31 10/86 7.88 111
SOSA Somerset Savings Bank of MA (3) OTC Eastern MA R.E. 540 5 12-31 07/86 4.94 82
ABBK Abington Bancorp of MA (3) OTC Southeastern MA M.B. 532 8 12-31 06/86 20.88 76
SWCB Sandwich Bancorp of MA (3) OTC Southeastern MA Thrift 519 11 12-31 07/86 57.75 112
BKCT Bancorp Connecticut of CT (3) OTC Central CT Thrift 443 3 12-31 07/86 20.00 102
WRNB Warren Bancorp of Peabody MA (3) OTC Eastern MA R.E. 371 6 12-31 07/86 24.00 91
LSBX Lawrence Savings Bank of MA (3) OTC Northeastern MA Thrift 360 5 12-31 05/86 18.88 81
CEBK Central Co-Op. Bank of MA (3) OTC Eastern MA Thrift 358 S 8 03-31 10/86 32.25 63
NMSB Newmil Bancorp, Inc. of CT (3) OTC Western CT Thrift 356 15 06-30 02/86 13.88 54
NHTB NH Thrift Bancshares of NH OTC Central NH Thrift 318 10 12-31 05/86 20.63 43
NBN Northeast Bancorp of ME (3) AMEX Eastern ME Thrift 279 11 06-30 08/87 17.25 38
ANE Alliance Bancorp of NE, of CT (3) AMEX Northern CT Thrift 247 7 12-31 12/86 20.88 34
IPSW Ipswich SB of Ipswich MA (3) OTC Northwest MA Thrift 227 6 12-31 05/93 14.00 33
HIFS Hingham Inst. for Sav. of MA (3) OTC Eastern MA Thrift 223 5 12-31 12/88 34.00 44
HPBC Home Port Bancorp, Inc. of MA (3) OTC Southeastern MA Thrift 209 2 12-31 08/88 26.00 48
MYST Mystic Financial of MA (3) OTC Medford Thrift 181 P 3 06-30 01/98 17.88 48
KSBK KSB Bancorp of Kingfield ME (3) OTC Western ME M.B. 150 S 8 12-31 06/93 18.50 23
FCME First Coastal Corp. of ME (3) OTC Southern ME Thrift 146 7 12-31 / 13.75 19
MFLR Mayflower Co-Op. Bank of MA (3) OTC Southeastern MA Thrift 132 4 04-30 12/87 27.00 24
NTMG Nutmeg FS&LA of CT OTC Eastern CT M.B. 105 S 3 12-31 / 10.88 11
FCB Falmouth Bancorp, Inc. of MA (3) AMEX Southeast MA Thrift 98 2 09-30 03/96 23.63 34
MCBN Mid-Coast Bancorp of ME OTC Eastern ME Thrift 63 2 03-31 11/89 38.00 9
North-West Companies
- --------------------
WAMU Washington Mutual, Inc. of WA (3) OTC CA,WA,FL,OR,UT Div. 96,982 914 12-31 03/83 73.94 19,044
WFSL Washington Federal, Inc. of WA OTC Western US Thrift 5,713 104 09-30 11/82 29.00 1,516
IWBK Interwest Bancorp of WA OTC Western WA Div. 1,982 39 09-30 / 42.00 338
STSA Sterling Financial Corp. of WA OTC WA,OR M.B. 1,876 41 12-31 / 25.50 193
FWWB First Savings Bancorp of WA OTC Central WA Thrift 1,099 S 20 03-31 11/95 27.00 274
KFBI Klamath First Bancorp of OR OTC Southern OR Thrift 975 33 09-30 10/95 23.00 230
HRZB Horizon Financial Corp. of WA (3) OTC Northwest WA Thrift 533 12 03-31 08/86 18.88 141
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
North-West Companies (continued)
- --------------------------------
FMSB First Mutual SB of Bellevue WA (3) OTC Western WA M.B. 451 S 8 12-31 12/85 18.25 75
CASB Cascade Financial Corp. of WA OTC Seattle WA Thrift 423 11 06-30 09/92 14.75 50
OTFC Oregon Trail Fin. Corp. of OR OTC Baker City Thrift 369 S 7 03-31 10/97 18.38 80
HFWA Heritage Financial Corp of WA OTC NW Washington Thrift 311 P 10 06-30 01/98 15.13 148
TSBK Timberland Bancorp of WA OTC Grays Harbor Thrift 269 P 5 06-30 01/98 18.13 120
RVSB Riverview Bancorp of WA OTC Southwest WA Thrift 263 9 03-31 10/97 17.00 104
FBNW FirstBank Corp of Clarkston WA OTC West. WA/East ID Thrift 183 5 03-31 07/97 19.88 39
EFBC Empire Federal Bancorp of MT OTC Southern MT Thrift 111 S 3 12-31 01/97 18.00 47
South-East Companies
- --------------------
BNKU Bank United Corp. of TX OTC TX,AZ Thrift 12,523 71 09-30 08/96 48.38 1,529
FFCH First Fin. Holdings Inc. of SC OTC Charleston SC Div. 1,793 34 09-30 11/83 51.75 350
FLFC First Liberty Fin. Corp. of GA OTC Georgia M.B. 1,275 31 09-30 12/83 34.00 263
EBSI Eagle Bancshares of Tucker GA OTC Atlanta GA Thrift 934 14 03-31 04/86 21.38 122
HFNC HFNC Financial Corp. of NC OTC Charlotte NC Thrift 911 10 06-30 12/95 13.50 232
CNIT Cenit Bancorp of Norfolk VA OTC Southeastern VA Thrift 702 S 19 12-31 08/92 79.00 131
VABF Va. Beach Fed. Fin. Corp of VA OTC Southeast VA M.B. 616 14 12-31 11/80 19.63 98
FFFC FFVA Financial Corp. of VA OTC Southern VA Thrift 580 12 12-31 10/94 38.25 175
CFCP Coastal Fin. Corp. of SC OTC South Carolina Thrift 564 9 09-30 09/90 22.00 103
FFBH First Fed. Bancshares of AR OTC Northern AR Thrift 547 S 13 12-31 05/96 26.25 129
FSPT FirstSpartan Fin. Corp. of SC OTC Northwestern SC Thrift 495 7 06-30 07/97 44.00 195
TSH Teche Holding Company of LA AMEX Southern LA Thrift 409 9 09-30 04/95 21.75 75
CFBC Community First Bnkg Co. of GA OTC Westcentral GA Thrift 395 S 12 12-31 07/97 45.00 109
PFSL Pocahnts Fed, MHC of AR (47.0) OTC Northeast AR Thrift 389 6 09-30 04/94 45.88 75
COOP Cooperative Bancshares of NC OTC Eastern NC Thrift 369 16 12-31 08/91 19.75 59
FSTC First Citizens Corp of GA OTC Western GA M.B. 337 S 9 03-31 03/86 32.00 88
UFRM United FSB of Rocky Mount NC OTC Eastern NC M.B. 304 13 12-31 07/80 19.00 60
SOPN First Svgs Bancorp of NC OTC Central NC Thrift 301 5 06-30 01/94 24.63 91
ANA Acadiana Bancshares, Inc of LA AMEX Southern LA Thrift 274 S 5 12-31 07/96 22.13 60
PERT Perpetual of SC, MHC (46.8) OTC Northwest SC Thrift 257 S 6 09-30 10/93 65.88 99
FLAG Flag Financial Corp of GA OTC Western GA M.B. 238 S 4 12-31 12/86 19.88 40
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
South-East Companies (continued)
- --------------------------------
MERI Meritrust FSB of Thibodaux LA OTC Southeast LA Thrift 234 8 12-31 / 78.94 61
CFTP Community Fed. Bancorp of MS OTC Northeast MS Thrift 229 2 09-30 03/96 18.63 86
SSFC South Street Fin. Corp. of NC (3) OTC South Central NC Thrift 228 2 09-30 10/96 12.38 58
HCBB HCB Bancshares of Camden AR OTC Southern AR Thrift 205 7 06-30 05/97 14.69 39
ESX Essex Bancorp of Norfolk VA AMEX VA,NC M.B. 192 S 4 12-31 07/90 4.94 5
CFFC Community Fin. Corp. of VA OTC Central VA Thrift 183 4 03-31 03/88 30.25 39
FTF Texarkana Fst. Fin. Corp of AR AMEX Southwest AR Thrift 180 5 09-30 07/95 28.00 49
GSFC Green Street Fin. Corp. of NC OTC Southern NC Thrift 180 3 09-30 04/96 17.88 77
FFDB FirstFed Bancorp, Inc. of AL OTC Central AL Thrift 179 8 03-31 11/91 23.75 27
FGHC First Georgia Hold. Corp of GA OTC Southeastern GA Thrift 166 7 09-30 02/87 10.75 33
SZB SouthFirst Bancshares of AL AMEX Central AL Thrift 165 2 09-30 02/95 22.00 21
HBS Haywood Bancshares, Inc. of NC (3) AMEX Northwest NC Thrift 153 S 4 12-31 12/87 22.25 28
BFSB Bedford Bancshares, Inc. of VA OTC Southern VA Thrift 137 3 09-30 08/94 29.13 33
GSLA GS Financial Corp. of LA OTC New Orleans LA Thrift 131 3 12-31 04/97 20.63 71
PDB Piedmont Bancorp, Inc. of NC AMEX Central NC Thrift 130 1 06-30 12/95 10.63 29
CCFH CCF Holding Company of GA OTC Atlanta GA Thrift 125 5 12-31 07/95 21.50 19
CFNC Carolina Fincorp of NC (3) OTC Southcentral NC Thrift 115 4 06-30 11/96 17.31 32
TWIN Twin City Bancorp, Inc. of TN OTC Northeast TN Thrift 109 3 12-31 01/95 14.75 19
SSM Stone Street Bancorp of NC AMEX Central NC Thrift 108 2 12-31 04/96 20.25 38
SRN Southern Banc Company of AL AMEX Northeast AL Thrift 106 S 4 06-30 10/95 16.63 20
CENB Century Bancorp, Inc. of NC OTC Charlotte NC Thrift 102 1 06-30 12/96 86.12 35
PEDE Great Pee Dee Bancorp of SC OTC Northeast SC Thrift 79 P 1 06-30 12/97 15.75 35
UTBI United Tenn. Bancshares of TN OTC Eastern TN Thrift 77 P 2 12-31 01/98 14.56 21
SCBS Southern Commun. Bncshrs of AL OTC NorthCentral AL Thrift 71 S 1 09-30 12/96 18.50 21
SSB Scotland Bancorp, Inc. of NC AMEX S. Central NC Thrift 61 2 09-30 04/96 10.19 20
SCCB S. Carolina Comm. Bnshrs of SC OTC Central SC Thrift 45 3 06-30 07/94 22.13 13
MBSP Mitchell Bancorp, Inc. of NC OTC Western NC Thrift 36 1 06-30 07/96 17.00 16
South-West Companies
- --------------------
CBSA Coastal Bancorp of Houston TX OTC Houston TX M.B. 2,930 S 37 12-31 / 32.88 165
FBHC Fort Bend Holding Corp. of TX OTC Eastcentral TX M.B. 303 6 03-31 06/93 20.75 35
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit III-1
Characteristics of Publicly-Traded Thrifts
March 30, 1998(1)
<TABLE>
<CAPTION>
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
- ------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ ------
($Mil) ($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
South-West Companies (continued)
- --------------------------------
JXVL Jacksonville Bancorp of TX OTC East Central TX Thrift 235 6 09-30 04/96 20.13 49
ETFS East Texas Fin. Serv. of TX OTC Northeast TX Thrift 120 2 09-30 01/95 22.50 23
GUPB GFSB Bancorp, Inc of Gallup NM OTC Northwest NM Thrift 115 1 06-30 06/95 22.00 18
AABC Access Anytime Bancorp of NM OTC Eastern NM Thrift 106 S 3 12-31 08/86 10.81 13
Western Companies (Excl CA)
- ---------------------------
FFBA First Colorado Bancorp of CO OTC Colorado Thrift 1,555 27 12-31 01/96 28.44 478
WSTR WesterFed Fin. Corp. of MT OTC Montana Thrift 1,035 36 06-30 01/94 25.88 144
UBMT United Fin. Corp. of MT OTC Central MT Thrift 103 S 4 12-31 09/86 28.25 35
TRIC Tri-County Bancorp of WY OTC Southeastern WY Thrift 90 2 12-31 09/93 15.00 18
HCBC High Country Bancorp of CO OTC Salida Thrift 87 2 12-31 12/97 15.50 21
CRZY Crazy Woman Creek Bncorp of WY OTC Northeast WY Thrift 61 1 09-30 03/96 17.25 16
Other Areas
- -----------
</TABLE>
NOTES: (1) Or most recent date available (M=March, S=September, D=December,
J=June, E=Estimated, and P=Pro Forma)
(2) Operating strategies are: Thrift=Traditional Thrift, M.B.=Mortgage
Banker, R.E.=Real Estate Developer, Div.=Diversified, and
Ret.=Retail Banking.
(3) FDIC savings bank.
Source: Corporate offering circulars, SNL Securities Quarterly Thrift Report,
and financial reports of publicly Traded Thrifts.
Date of Last Update: 03/30/98
<PAGE>
EXHIBIT III-2
Financial Analysis of Louisiana Institutions
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-2
Market Pricing Comparatives
Prices As of March 20, 1998
<TABLE>
<CAPTION>
Market Per Share Data
Capitalization --------------- Pricing Ratios(3) Dividends(4)
--------------- Core Book ------------------------------------- ----------------------
Price/ Market 12-Mth Value/ Amount/ Payout
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE Share Yield Ratio(5)
- --------------------- ------- ------- ------- ------- ------- ------ ------- ------- ------ ------- ----- -------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 24.22 170.62 1.05 14.70 20.22 165.99 21.04 170.54 21.37 0.37 1.54 30.87
State of LA 21.50 68.47 0.83 16.54 21.03 130.08 31.36 130.08 21.84 0.41 1.88 50.48
Comparable Group
- ----------------
State of LA
- -----------
ANA Acadiana Bancshares, Inc of LA 22.13 59.68 0.94 17.22 22.81 128.51 21.78 128.51 23.54 0.44 1.99 46.81
GSLA GS Financial Corp. of LA 20.63 70.95 0.48 16.30 NM 126.56 53.99 126.56 NM 0.28 1.36 58.33
MERI Meritrust FSB of Thibodaux LA(7) 78.94 61.10 3.51 25.66 22.49 307.64 26.13 307.64 22.49 0.70 0.89 19.94
TSH Teche Holding Company of LA 21.75 74.78 1.08 16.09 19.25 135.18 18.30 135.18 20.14 0.50 2.30 46.30
</TABLE>
<TABLE>
<CAPTION>
Financial Characteristics(6)
-------------------------------------------------------
Total Equity/ NPAs/ Reported Core
Financial Institution Assets Assets Assets ROA ROE ROA ROE
- --------------------- ------ ------- ------- ------- ------- ------- -------
($Mil) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 1,015 13.61 0.74 0.94 8.11 0.89 7.58
State of LA 271 24.38 0.34 1.11 5.60 1.08 5.40
Comparable Group
- ----------------
State of LA
- -----------
ANA Acadiana Bancshares, Inc of LA 274 16.95 0.50 0.98 5.64 0.95 5.46
GSLA GS Financial Corp. of LA 131 42.66 0.13 1.38 3.88 1.36 3.80
MERI Meritrust FSB of Thibodaux LA(7) 234 8.49 0.35 1.18 14.53 1.18 14.53
TSH Teche Holding Company of LA 409 13.54 0.38 0.97 7.28 0.93 6.95
</TABLE>
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month data,
adjusted to omit non-operating items (including the SAIF assessment) on a
tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book;
P/A = Price to assets; P/TB = Price to tangible book value; and
P/CORE = Price to estimated core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend declared.
(5) Indicated dividend as a percent of trailing twelve month estimated core
earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month earnings and average equity and assets balances.
(7) Excludes from averages those companies the subject of actual or rumored
acquisition activities or unusual operating characteristics.
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been obtained
from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
EXHIBIT III-3
Financial Analysis of Southeast and Southwest Institutions
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
<CAPTION>
Exhibit III-3
Market Pricing Comparatives
Prices As of March 20, 1998
Market Per Share Data
Capitalization -------------- Pricing Ratios(3)
--------------- Core Book --------------------------------------
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
- --------------------- -------- ------- ------- ------- ------- ------- ------- ------- ------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 24.22 170.62 1.05 14.70 20.22 165.99 21.04 170.54 21.37
Special Selection Grouping(8) 25.73 108.41 1.05 16.17 21.65 164.90 25.22 169.10 22.77
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
ANA Acadiana Bancshares, Inc of LA 22.13 59.68 0.94 17.22 22.81 128.51 21.78 128.51 23.54
BNKU Bank United Corp. of TX 48.38 1528.61 2.21 19.39 19.20 249.51 12.21 256.11 21.89
BFSB Bedford Bancshares, Inc. of VA 29.13 33.27 1.41 17.41 20.51 167.32 24.30 167.32 20.66
CCFH CCF Holding Company of GA 21.50 19.35 -0.25 13.05 NM 164.75 15.48 164.75 NM
CFNC Carolina Fincorp of NC 17.31 32.06 0.70 14.06 23.71 123.12 27.96 123.12 24.73
CNIT Cenit Bancorp of Norfolk VA 79.00 130.67 3.15 29.47 23.30 268.07 18.62 292.70 25.08
CENB Century Bancorp, Inc. of NC 86.12 35.05 4.01 75.76 21.53 113.67 34.27 113.67 21.48
CFCP Coastal Fin. Corp. of SC 22.00 102.83 1.10 7.21 16.79 305.13 18.24 305.13 20.00
CFTP Community Fed. Bancorp of MS 18.63 86.24 0.61 13.07 NM 142.54 37.71 142.54 NM
CFFC Community Fin. Corp. of VA 30.25 38.63 1.48 19.52 20.58 154.97 21.12 155.69 20.44
CFBC Community First Bnkg Co. of GA 45.00 108.63 0.96 29.10 NM 154.64 27.53 156.74 NM
COOP Cooperative Bancshares of NC 19.75 58.93 0.74 9.48 26.33 208.33 15.97 208.33 26.69
EBSI Eagle Bancshares of Tucker GA 21.38 122.27 0.97 12.80 22.27 167.03 13.08 167.03 22.04
ESX Essex Bancorp of Norfolk VA(7) 4.94 5.23 0.18 0.03 24.70 NM 2.72 NM 27.44
FFFC FFVA Financial Corp. of VA(7) 38.25 175.22 1.66 17.33 27.32 220.72 30.23 225.00 23.04
FSTC First Citizens Corp of GA 32.00 88.48 1.92 12.34 14.88 259.32 26.24 328.88 16.67
FFBH First Fed. Bancshares of AR 26.25 128.52 1.08 16.64 23.23 157.75 23.49 157.75 24.31
FFCH First Fin. Holdings Inc. of SC 51.75 349.88 2.11 17.08 23.96 302.99 19.51 302.99 24.53
FGHC First Georgia Hold. Corp of GA 10.75 32.81 0.48 4.53 18.53 237.31 19.72 255.95 22.40
FLFC First Liberty Fin. Corp. of GA 34.00 263.43 1.27 12.49 27.64 272.22 20.65 299.30 26.77
SOPN First Svgs Bancorp of NC 24.63 91.13 1.35 18.51 18.24 133.06 30.30 133.06 18.24
FFDB FirstFed Bancorp, Inc. of AL 23.75 27.43 1.48 15.00 16.05 158.33 15.34 172.48 16.05
FSPT FirstSpartan Fin. Corp. of SC 44.00 194.92 1.33 29.52 NM 149.05 39.35 149.05 NM
FLAG Flag Financial Corp of GA 19.88 40.50 0.84 10.66 19.68 186.49 16.98 186.49 23.67
GSLA GS Financial Corp. of LA 20.63 70.95 0.48 16.30 NM 126.56 53.99 126.56 NM
PEDE Great Pee Dee Bancorp of SC 15.75 34.68 0.56 13.51 28.13 116.58 44.14 116.58 28.13
GSFC Green Street Fin. Corp. of NC 17.88 76.85 0.66 14.73 27.09 121.38 42.76 121.38 27.09
HCBB HCB Bancshares of Camden AR 14.69 38.86 0.22 14.45 NM 101.66 18.96 105.38 NM
HFNC HFNC Financial Corp. of NC 13.50 232.11 0.48 9.66 21.43 139.75 25.49 139.75 28.13
HBS Haywood Bancshares, Inc. of NC 22.25 27.81 1.56 17.34 14.26 128.32 18.20 132.92 14.26
MERI Meritrust FSB of Thibodaux LA(7) 78.94 61.10 3.51 25.66 22.49 307.64 26.13 307.64 22.49
MBSP Mitchell Bancorp, Inc. of NC 17.00 15.83 0.56 15.56 NM 109.25 43.84 109.25 NM
PERT Perpetual of SC, MHC (46.8)(7) 65.88 46.45 1.40 20.28 NM 324.85 38.68 324.85 NM
PDB Piedmont Bancorp, Inc. of NC 10.63 29.24 0.54 7.66 19.69 138.77 22.46 138.77 19.69
PFSL Pocahnts Fed, MHC of AR (47.0)(7) 45.88 35.28 1.43 15.17 NM 302.44 19.23 302.44 NM
SCCB S. Carolina Comm. Bnshrs of SC 22.13 12.90 0.79 16.00 28.01 138.31 28.61 138.31 28.01
SSB Scotland Bancorp, Inc. of NC 10.19 19.50 0.58 7.73 17.57 131.82 31.72 131.82 17.57
SSFC South Street Fin. Corp. of NC 12.38 57.89 0.44 7.28 28.79 170.05 25.34 170.05 28.14
SZB SouthFirst Bancshares of AL 22.00 21.47 0.64 16.39 NM 134.23 12.98 137.67 NM
SRN Southern Banc Company of AL 16.63 20.45 0.41 14.74 NM 112.82 19.27 113.83 NM
SCBS Southern Commun. Bncshrs of AL 18.50 21.03 0.70 12.73 26.43 145.33 29.68 145.33 26.43
SSM Stone Street Bancorp of NC 20.25 38.43 0.81 16.37 25.00 123.70 35.56 123.70 25.00
TSH Teche Holding Company of LA 21.75 74.78 1.08 16.09 19.25 135.18 18.30 135.18 20.14
FTF Texarkana Fst. Fin. Corp of AR 28.00 49.28 1.68 15.52 16.28 180.41 27.34 180.41 16.67
TWIN Twin City Bancorp, Inc. of TN 14.75 18.72 0.70 11.04 17.35 133.61 17.22 133.61 21.07
UFRM United FSB of Rocky Mount NC(7) 19.00 60.21 0.37 6.94 NM 273.78 19.80 273.78 NM
UTBI United Tenn. Bancshares of TN 14.56 21.18 0.66 12.95 22.06 112.43 27.53 112.43 22.06
<CAPTION>
Dividends(4) Financial Characteristics(6)
----------------------- -------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ ---------------- --------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- -------- ------ ------- ------ ------- ------- ------- ------- ------- -------
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 0.37 1.54 30.87 1,015 13.61 0.74 0.94 8.11 0.89 7.58
Special Selection Grouping(8) 0.48 1.96 42.24 619 17.43 0.94 1.09 7.60 1.04 7.11
Comparable Group
- ----------------
Special Comparative Group(8)
- ----------------------------
ANA Acadiana Bancshares, Inc of LA 0.44 1.99 46.81 274 16.95 0.50 0.98 5.64 0.95 5.46
BNKU Bank United Corp. of TX 0.64 1.32 28.96 12,523 4.89 0.68 0.69 13.68 0.60 12.00
BFSB Bedford Bancshares, Inc. of VA 0.56 1.92 39.72 137 14.52 0.54 1.21 8.45 1.20 8.39
CCFH CCF Holding Company of GA 0.64 2.98 NM 125 9.39 0.50 0.13 1.11 -0.22 -1.85
CFNC Carolina Fincorp of NC 0.24 1.39 34.29 115 22.71 0.10 1.22 5.24 1.17 5.02
CNIT Cenit Bancorp of Norfolk VA 1.20 1.52 38.10 702 6.95 0.52 0.80 11.30 0.74 10.50
CENB Century Bancorp, Inc. of NC 2.00 2.32 49.88 102 30.15 0.58 1.61 5.35 1.62 5.37
CFCP Coastal Fin. Corp. of SC 0.36 1.64 32.73 564 5.98 0.59 1.22 19.67 1.03 16.52
CFTP Community Fed. Bancorp of MS 0.32 1.72 52.46 229 26.46 0.49 1.32 4.49 1.32 4.49
CFFC Community Fin. Corp. of VA 0.56 1.85 37.84 183 13.63 0.44 1.07 7.86 1.08 7.91
CFBC Community First Bnkg Co. of GA 0.60 1.33 62.50 395 17.80 2.19 0.59 6.09 0.59 6.09
COOP Cooperative Bancshares of NC 0.00 0.00 0.00 369 7.66 0.17 0.63 8.32 0.62 8.21
EBSI Eagle Bancshares of Tucker GA 0.60 2.81 61.86 934 7.83 1.18 0.66 8.05 0.67 8.14
ESX Essex Bancorp of Norfolk VA(7) 0.00 0.00 0.00 192 0.02 2.11 0.12 NM 0.10 NM
FFFC FFVA Financial Corp. of VA(7) 0.60 1.57 36.14 580 13.70 0.11 1.15 8.57 1.36 10.16
FSTC First Citizens Corp of GA 0.32 1.00 16.67 337 10.12 1.12 1.96 20.63 1.75 18.43
FFBH First Fed. Bancshares of AR 0.28 1.07 25.93 547 14.89 0.96 1.06 6.78 1.01 6.48
FFCH First Fin. Holdings Inc. of SC 0.84 1.62 39.81 1,793 6.44 1.35 0.87 14.13 0.85 13.80
FGHC First Georgia Hold. Corp of GA 0.40 3.72 NM 166 8.31 4.97 1.13 13.71 0.94 11.35
FLFC First Liberty Fin. Corp. of GA 0.44 1.29 34.65 1,275 7.59 1.00 0.76 10.21 0.78 10.54
SOPN First Svgs Bancorp of NC 1.00 4.06 74.07 301 22.77 0.20 1.75 7.41 1.75 7.41
FFDB FirstFed Bancorp, Inc. of AL 0.50 2.11 33.78 179 9.69 1.42 0.96 9.89 0.96 9.89
FSPT FirstSpartan Fin. Corp. of SC 0.60 1.36 45.11 495 26.40 0.47 1.16 6.68 1.16 6.68
FLAG Flag Financial Corp of GA 0.34 1.71 40.48 238 9.11 3.92 0.91 9.84 0.75 8.19
GSLA GS Financial Corp. of LA 0.28 1.36 58.33 131 42.66 0.13 1.38 3.88 1.36 3.80
PEDE Great Pee Dee Bancorp of SC 0.00 0.00 0.00 79 37.86 0.45 1.57 4.15 1.57 4.15
GSFC Green Street Fin. Corp. of NC 0.44 2.46 66.67 180 35.23 0.07 1.61 4.50 1.61 4.50
HCBB HCB Bancshares of Camden AR 0.20 1.36 NM 205 18.65 0.23 0.30 2.05 0.30 2.05
HFNC HFNC Financial Corp. of NC 0.32 2.37 66.67 911 18.24 0.79 1.23 6.02 0.93 4.58
HBS Haywood Bancshares, Inc. of NC 0.60 2.70 38.46 153 14.19 0.67 1.34 11.63 1.34 11.63
MERI Meritrust FSB of Thibodaux LA(7) 0.70 0.89 19.94 234 8.49 0.35 1.18 14.53 1.18 14.53
MBSP Mitchell Bancorp, Inc. of NC 0.40 2.35 71.43 36 40.12 1.77 1.52 3.59 1.52 3.59
PERT Perpetual of SC, MHC (46.8)(7) 1.40 2.13 NM 257 11.91 NA 0.80 6.41 0.89 7.07
PDB Piedmont Bancorp, Inc. of NC 0.40 3.76 74.07 130 16.19 1.29 1.19 7.28 1.19 7.28
PFSL Pocahnts Fed, MHC of AR (47.0)(7) 0.90 1.96 29.66 389 6.36 0.23 0.62 9.84 0.61 9.71
SCCB S. Carolina Comm. Bnshrs of SC 0.64 2.89 NM 45 20.69 1.53 1.00 4.02 1.00 4.02
SSB Scotland Bancorp, Inc. of NC 0.20 1.96 34.48 61 24.07 NA 1.67 5.26 1.67 5.26
SSFC South Street Fin. Corp. of NC 0.40 3.23 NM 228 14.90 0.16 0.85 3.61 0.87 3.69
SZB SouthFirst Bancshares of AL 0.60 2.73 NM 165 9.67 1.28 0.56 4.44 0.57 4.51
SRN Southern Banc Company of AL 0.35 2.10 NM 106 17.08 NA 0.48 2.77 0.48 2.77
SCBS Southern Commun. Bncshrs of AL 0.30 1.62 42.86 71 20.42 2.34 1.15 5.98 1.15 5.98
SSM Stone Street Bancorp of NC 0.46 2.27 56.79 108 28.74 0.27 1.45 4.58 1.45 4.58
TSH Teche Holding Company of LA 0.50 2.30 46.30 409 13.54 0.38 0.97 7.28 0.93 6.95
FTF Texarkana Fst. Fin. Corp of AR 0.56 2.00 33.33 180 15.15 0.17 1.76 11.23 1.72 10.97
TWIN Twin City Bancorp, Inc. of TN 0.40 2.71 57.14 109 12.89 0.09 1.01 7.87 0.83 6.48
UFRM United FSB of Rocky Mount NC(7) 0.24 1.26 64.86 304 7.23 1.06 0.65 8.66 0.42 5.62
UTBI United Tenn. Bancshares of TN 0.00 0.00 0.00 77 24.48 0.93 1.25 5.10 1.25 5.10
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
<CAPTION>
Exhibit III-3
Market Pricing Comparatives
Prices As of March 20, 1998
Market Per Share Data
Capitalization -------------- Pricing Ratios(3)
--------------- Core Book --------------------------------------
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
- --------------------- -------- ------- ------- ------- ------- ------- ------- ------- ------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Special Comparative Group(8) (continued)
- ----------------------------------------
VABF Va. Beach Fed. Fin. Corp of VA 19.63 97.78 0.66 8.86 23.94 221.56 15.87 221.56 29.74
<CAPTION>
Dividends(4) Financial Characteristics(6)
----------------------- -------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ ---------------- --------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- -------- ------ ------- ------ ------- ------- ------- ------- ------- -------
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Special Comparative Group(8) (continued)
- ----------------------------------------
VABF Va. Beach Fed. Fin. Corp of VA 0.24 1.22 36.36 616 7.16 1.13 0.67 9.65 0.54 7.76
</TABLE>
________________________
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month data,
adjusted to omit non-operating items (including the SAIF assessment) on a
tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book; P/A = Price to assets;
P/TB = Price to tangible book value; and P/CORE = Price to estimated
core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend declared.
(5) Indicated dividend as a percent of trailing twelve month
estimated core earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month earnings and average equity and assets
balances.
(7) Excludes from averages those companies the subject of actual or rumored
acquisition activities or unusual operating characteristics.
(8) Includes South-East Companies;
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been
obtained from sources we believe are reliable, but we cannot guarantee
the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit III-3
Market Pricing Comparatives
Prices As of March 20, 1998
<TABLE>
<CAPTION>
Market Per Share Data
Capitalization -------------- Pricing Ratios(3)
--------------- Core Book ---------------------------------------
Price/ Market 12-Mth Value/
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 24.22 170.62 1.05 14.70 20.22 165.99 21.04 170.54 21.37
Special Selection Grouping(8) 21.51 50.39 1.30 15.42 14.39 141.77 14.16 148.77 15.50
Comparable Group
----------------
Special Comparative Group(8)
----------------------------
AABC Access Anytime Bancorp of NM 10.81 13.16 1.17 7.51 8.58 143.94 12.45 143.94 9.24
CBSA Coastal Bancorp of Houston TX 32.88 164.70 2.46 20.29 13.70 162.05 5.62 192.73 13.37
ETFS East Texas Fin. Serv. of TX 22.50 23.09 0.66 20.45 NM 110.02 19.22 110.02 NM
FBHC Fort Bend Holding Corp. of TX 20.75 34.61 1.04 12.29 14.72 168.84 11.43 180.12 19.95
GUPB GFSB Bancorp, Inc of Gallup NM 22.00 17.62 1.08 17.90 20.37 122.91 15.36 122.91 20.37
JXVL Jacksonville Bancorp of TX 20.13 49.20 1.38 14.09 14.59 142.87 20.90 142.87 14.59
<CAPTION>
Dividends(4) Financial Characteristics(6)
----------------------- -------------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ ---------------- --------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
--------------------- ------- ------ ------- ------ ------- ------- ------- ------- ------- -------
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 0.37 1.54 30.87 1,015 13.61 0.74 0.94 8.11 0.89 7.58
Special Selection Grouping(8) 0.33 1.43 26.92 635 10.58 0.66 0.94 11.09 0.88 10.30
Comparable Group
----------------
Special Comparative Group(8)
----------------------------
AABC Access Anytime Bancorp of NM 0.00 0.00 0.00 106 8.65 1.58 1.44 22.38 1.34 20.78
CBSA Coastal Bancorp of Houston TX 0.48 1.46 19.51 2,930 3.47 NA 0.42 12.45 0.43 12.77
ETFS East Texas Fin. Serv. of TX 0.20 0.89 30.30 120 17.47 0.33 0.63 3.48 0.59 3.24
FBHC Fort Bend Holding Corp. of TX 0.40 1.93 38.46 303 6.77 0.47 0.78 12.28 0.57 9.06
GUPB GFSB Bancorp, Inc of Gallup NM 0.40 1.82 37.04 115 12.50 0.24 0.89 6.08 0.89 6.08
JXVL Jacksonville Bancorp of TX 0.50 2.48 36.23 235 14.63 0.70 1.49 9.87 1.49 9.87
</TABLE>
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month
data, adjusted to omit non-operating items (including the SAIF
assessment) on a tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book;
P/A = Price to assets; P/TB = Price to tangible book value; and
P/CORE = Price to estimated core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend
declared.
(5) Indicated dividend as a percent of trailing twelve month
estimated core earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month earnings and average equity and assets
balances.
(7) Excludes from averages those companies the subject of actual
or rumored acquisition activities or unusual operating characteristics.
(8) Includes South-West Companies;
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been
obtained from sources we believe are reliable, but we cannot
guarantee the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
EXHIBIT III-4
Peer Group Market Area Comparative Analysis
<PAGE>
<TABLE>
<CAPTION>
Exhibit III-4
Peer Group Market Area Comparative Analysis
Population Proj.
----------------- Pop. 1990-97
Institution County 1990 1997 2002 % Change
- ----------- ------ ---- ----- ---- --------
(000) (000)
<S> <C> <C> <C> <C> <C>
Acadiana Bancshares, Inc. of LA................ Lafayette 165 184 198 11.9%
East Texas Fin. Serv. of TX.................... Smith 151 167 179 10.6%
FirstFed Bancorp, Inc. of AL................... Jefferson 652 662 670 1.7%
GFSB Bancorp, Inc. of Gallup NM................ McKinley 61 69 74 13.3%
GS Financial Corp. of LA....................... Jefferson 448 455 459 1.4%
South Street Fin. Corp. of NC.................. Stanly 52 55 58 7.0%
SouthFirst Bancshares of AL.................... Talladega 74 77 78 3.5%
Southern Banc Company of AL.................... Etowah 100 102 104 2.6%
Teche Holding Company of LA.................... St. Mary 58 57 57 -1.2%
Twin City Bancorp, Inc. of TN.................. Sullivan 144 151 156 5.0%
---- ----- ---- --------
Averages: 190 198 203 5.6%
Medians: 122 127 130 4.2%
Ponchatoula Homestead of LA.................... Tangipahoa 86 96 103 11.7%
</TABLE>
<TABLE>
<CAPTION>
Per Capita Income
------------------ Deposit
1997-2002 % State Market
Institution County % Change Median Age Amount Average Share(1)
- ------------ ------ -------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Acadiana Bancshares, Inc. of LA................ Lafayette 7.3% 31.3 14,444 110.0% 9.0%
East Texas Fin. Serv. of TX.................... Smith 6.6% 35.2 16,502 98.1% 4.6%
FirstFed Bancorp, Inc. of AL................... Jefferson 1.1% 35.9 17,128 114.8% 1.1%
GFSB Bancorp, Inc. of Gallup NM................ McKinley 8.1% 25.6 8,442 62.9% 20.1%
GS Financial Corp. of LA....................... Jefferson 1.0% 34.6 14,665 111.7% 1.1%
South Street Fin. Corp. of NC.................. Stanly 4.5% 36.2 13,926 79.5% 22.7%
SouthFirst Bancshares of AL.................... Talladega 2.3% 34.8 12,359 82.8% 10.7%
Southern Banc Company of AL.................... Etowah 1.8% 38.0 14,415 96.6% 3.6%
Teche Holding Company of LA.................... St. Mary -0.6% 31.4 10,562 80.4% 19.1%
Twin City Bancorp, Inc. of TN.................. Sullivan 3.3% 38.9 16,588 99.7% 5.4%
-------- ---------- -------- -------- --------
Averages: 3.5% 34.2 13,903 93.7% 9.7%
Medians: 2.8% 35.0 14,430 97.4% 5.6%
Ponchatoula Homestead of LA.................... Tangipahoa 7.2% 31.7 10,108 77.0% 6.6%
</TABLE>
- --------------------
(1) Total institution deposits in headquarters county as percent of total county
deposits. Excludes credit unions.
Sources: CACI, Inc; SNL Securities, LC., FDIC
<PAGE>
EXHIBIT IV-1
Stock Prices:
As of March 20, 1998
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. SAIF-Insured Thrifts(no MHC)
---------------------------------------------
SAIF-Insured Thrifts(294).................... 24.14 5,629 176.2 25.65 15.84 23.78 1.31 47.32 3.41
NYSE Traded Companies(9)..................... 42.09 35,643 1,705.4 43.51 24.69 41.13 1.64 50.24 6.61
AMEX Traded Companies(20).................... 19.74 2,932 56.1 21.68 13.83 19.50 0.99 35.66 0.60
NASDAQ Listed OTC Companies(265)............. 24.04 5,094 147.6 25.52 15.77 23.68 1.32 48.17 3.55
California Companies(20)..................... 28.81 13,171 603.5 30.08 17.84 27.96 2.74 41.79 5.29
Florida Companies(5)......................... 22.88 21,867 512.6 26.29 15.04 23.10 -0.98 34.54 -6.36
Mid-Atlantic Companies(56)................... 25.19 6,715 200.7 26.39 15.66 24.56 2.40 52.36 3.05
Mid-West Companies(138)...................... 22.50 4,047 121.0 24.05 14.91 22.28 0.77 46.24 3.51
New England Companies(9)..................... 31.21 4,842 196.8 32.31 17.38 30.54 1.79 66.84 4.61
North-West Companies(11)..................... 22.80 10,610 275.8 23.57 16.48 22.38 2.05 49.46 17.74
South-East Companies(43)..................... 26.38 3,865 113.7 28.44 18.33 26.08 1.04 43.43 0.33
South-West Companies(6)...................... 21.51 2,028 50.4 23.36 14.34 21.36 0.75 51.52 -4.44
Western Companies (Excl CA)(6)............... 21.72 4,509 118.6 21.96 14.89 21.34 2.15 46.90 7.84
Thrift Strategy(245)......................... 22.84 3,898 102.8 24.40 15.43 22.53 1.23 45.33 2.95
Mortgage Banker Strategy(30)................. 31.57 13,949 553.2 32.85 18.44 30.97 1.40 57.84 3.86
Real Estate Strategy(8)...................... 26.52 6,484 157.6 26.97 15.16 25.89 2.64 62.25 13.72
Diversified Strategy(7)...................... 38.85 33,283 1,332.5 40.79 22.58 38.38 0.20 51.34 6.21
Retail Banking Strategy(4)................... 20.17 4,568 108.5 21.98 11.98 19.27 4.43 55.12 0.51
Companies Issuing Dividends(248)............. 24.88 5,573 184.9 26.44 16.32 24.49 1.38 45.92 2.55
Companies Without Dividends(46).............. 20.18 5,923 130.2 21.43 13.24 19.97 0.92 54.74 8.03
Equity/Assets less than 6%(24)............... 25.40 13,973 373.9 26.79 14.72 24.74 1.75 62.12 2.97
Equity/Assets 6-12%(134)..................... 27.18 6,256 243.1 28.62 16.49 26.79 1.07 54.04 3.65
Equity/Assets greater than 12%(136).......... 21.24 3,726 85.2 22.83 15.44 20.96 1.44 39.10 3.27
Converted Last 3 Mths (no MHC)(7)............ 15.56 4,760 74.1 16.04 13.17 15.31 1.81 66.65 36.05
Actively Traded Companies(36)................ 34.47 17,362 733.5 35.63 20.20 33.90 1.14 59.27 5.73
Market Value Below $20 Million(41)........... 17.49 921 15.3 18.95 12.44 17.47 0.21 39.23 1.35
Holding Company Structure(266)............... 24.31 5,522 178.1 25.86 16.04 23.93 1.36 45.83 3.39
Assets Over $1 Billion(57)................... 34.43 19,175 727.4 35.76 20.77 33.46 2.53 49.29 4.49
Assets $500 Million-$1 Billion(44)........... 25.85 5,487 124.3 27.45 15.85 25.41 1.82 52.53 3.33
Assets $250-$500 Million(66)................. 24.32 3,022 69.1 25.79 15.78 23.96 1.52 56.30 5.23
Assets less than $250 Million(127)........... 19.43 1,631 29.9 21.01 13.92 19.34 0.55 40.44 2.14
Goodwill Companies(120)...................... 28.08 9,624 308.5 29.48 17.37 27.53 1.67 51.86 3.61
Non-Goodwill Companies(174).................. 21.61 3,064 91.4 23.19 14.85 21.37 1.07 44.43 3.29
Acquirors of FSLIC Cases(9).................. 38.71 28,871 1,532.3 39.61 23.77 37.26 4.13 52.27 3.36
</TABLE>
<TABLE>
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
EPS(3) EPS(3) Share Share(4) Share
-------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
Market Averages. SAIF-Insured Thrifts(no MHC)
---------------------------------------------
SAIF-Insured Thrifts(294).................... 1.13 1.07 14.95 14.52 137.14
NYSE Traded Companies(9)..................... 2.48 2.00 19.78 19.44 286.31
AMEX Traded Companies(20).................... 0.87 0.82 14.17 13.97 113.97
NASDAQ Listed OTC Companies(265)............. 1.12 1.07 14.89 14.44 135.25
California Companies(20)..................... 1.54 1.43 17.17 16.70 238.54
Florida Companies(5)......................... 1.12 0.72 11.77 11.20 168.28
Mid-Atlantic Companies(56)................... 1.24 1.19 14.86 14.07 154.82
Mid-West Companies(138)...................... 1.03 0.98 14.36 14.07 117.50
New England Companies(9)..................... 1.40 1.55 17.51 16.68 244.32
North-West Companies(11)..................... 1.06 0.98 13.20 12.77 111.53
South-East Companies(43)..................... 1.12 1.06 16.42 16.17 119.99
South-West Companies(6)...................... 1.37 1.30 15.42 14.76 201.63
Western Companies (Excl CA)(6)............... 0.95 0.94 15.40 14.75 94.84
Thrift Strategy(245)......................... 1.06 1.02 14.99 14.61 124.15
Mortgage Banker Strategy(30)................. 1.58 1.46 15.22 14.38 211.78
Real Estate Strategy(8)...................... 1.60 1.46 13.91 13.52 197.41
Diversified Strategy(7)...................... 1.80 1.46 14.61 14.27 191.20
Retail Banking Strategy(4)................... -0.37 -0.44 12.95 12.39 186.34
Companies Issuing Dividends(248)............. 1.20 1.13 15.22 14.75 137.36
Companies Without Dividends(46).............. 0.77 0.77 13.50 13.28 135.96
Equity/Assets less than 6%(24)............... 1.20 1.25 11.82 11.01 239.70
Equity/Assets 6-12%(134)..................... 1.37 1.27 14.89 14.21 173.47
Equity/Assets greater than 12%(136).......... 0.90 0.87 15.51 15.36 88.43
Converted Last 3 Mths (no MHC)(7)............ 0.56 0.56 12.29 12.29 41.95
Actively Traded Companies(36)................ 1.70 1.81 16.22 15.64 205.60
Market Value Below $20 Million(41)........... 0.83 0.77 13.57 13.52 101.89
Holding Company Structure(266)............... 1.12 1.07 15.19 14.75 137.05
Assets Over $1 Billion(57)................... 1.69 1.60 16.52 15.14 229.54
Assets $500 Million-$1 Billion(44)........... 1.23 1.17 14.04 13.62 158.24
Assets $250-$500 Million(66)................. 1.17 1.10 15.19 14.79 137.89
Assets less than $250 Million(127)........... 0.86 0.82 14.53 14.45 93.37
Goodwill Companies(120)...................... 1.38 1.29 15.32 14.22 177.24
Non-Goodwill Companies(174).................. 0.96 0.94 14.71 14.71 111.39
Acquirors of FSLIC Cases(9).................. 2.38 2.21 19.91 19.21 259.82
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1996 or 1997.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances.
(6) Annualized, based on last regular quarterly cash
dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
(9) For MHC institutions, market
value reflects share price multiplied by public (non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe
are reliable, but we cannot guarantee the accuracy or completeness
of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. BIF-Insured Thrifts(no MHC)
--------------------------------------------
BIF-Insured Thrifts(59)..................... 26.87 15,276 656.6 28.01 16.52 26.41 1.66 59.21 5.35
NYSE Traded Companies(4).................... 35.57 64,012 2,024.5 36.16 24.86 35.10 1.73 56.68 2.39
AMEX Traded Companies(7).................... 27.33 1,777 51.4 27.98 15.86 27.03 0.67 67.23 7.89
NASDAQ Listed OTC Companies(48)............. 26.04 12,444 602.2 27.29 15.85 25.57 1.76 58.55 5.33
California Companies(1)..................... 21.25 7,871 167.3 21.25 14.00 20.00 6.25 34.92 10.39
Mid-Atlantic Companies(21).................. 25.82 21,701 632.8 26.74 17.12 25.29 2.42 56.67 5.69
New England Companies(31)................... 27.72 4,565 138.8 28.86 15.83 27.37 1.14 68.52 6.85
North-West Companies(3)..................... 37.02 89,713 6,420.0 37.79 22.65 35.84 1.74 48.34 6.96
South-East Companies(3)..................... 17.31 2,593 39.3 20.58 13.84 17.29 0.03 7.43 -14.13
Thrift Strategy(44)......................... 25.55 7,972 225.3 26.71 15.97 25.25 1.20 58.52 6.41
Mortgage Banker Strategy(7)................. 25.19 29,028 814.6 27.04 14.48 24.67 2.38 70.17 -3.32
Real Estate Strategy(3)..................... 22.63 5,839 129.3 22.88 14.50 21.91 3.52 43.65 7.37
Diversified Strategy(5)..................... 41.34 62,448 4,214.7 41.85 24.28 39.83 3.77 58.00 6.22
Companies Issuing Dividends(47)............. 28.89 16,557 771.4 30.18 17.38 28.49 1.22 56.30 1.70
Companies Without Dividends(12)............. 18.96 10,270 207.8 19.52 13.14 18.27 3.34 70.60 19.61
Equity/Assets less than 6%(4)............... 33.96 68,924 4,858.9 34.58 18.63 32.22 5.47 79.46 6.10
Equity/Assets 6-12%(40)..................... 28.13 10,659 342.8 29.30 16.22 27.83 0.92 63.76 3.48
Equity/Assets greater than 12%(15).......... 22.03 11,743 268.1 23.24 16.64 21.54 2.35 43.21 9.52
Converted Last 3 Mths (no MHC)(4)........... 18.60 19,680 386.4 18.80 16.08 17.96 3.54 77.25 39.91
Actively Traded Companies(17)............... 36.53 30,644 1,719.3 37.32 21.50 36.04 1.04 64.76 7.86
Market Value Below $20 Million(2)........... 13.00 1,046 13.8 14.57 7.72 13.19 -1.15 53.97 7.45
Holding Company Structure(47)............... 26.39 13,839 664.4 27.58 16.51 25.94 1.66 59.23 6.48
Assets Over $1 Billion(18).................. 35.28 41,113 1,928.7 35.94 22.22 34.32 3.09 57.34 8.57
Assets $500 Million-$1 Billion(15).......... 29.05 5,404 125.5 29.56 16.71 28.43 2.28 65.18 5.32
Assets $250-$500 Million(11)................ 20.54 3,657 72.0 22.25 12.49 20.71 -0.37 61.59 0.23
Assets less than $250 Million(15)........... 20.37 1,755 33.0 22.11 12.87 20.14 1.06 55.21 5.48
Goodwill Companies(32)...................... 29.61 24,515 1,132.8 30.55 17.74 29.21 1.39 63.44 7.03
Non-Goodwill Companies(27).................. 23.91 5,328 143.8 25.28 15.20 23.39 1.95 54.66 3.54
</TABLE>
<TABLE>
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
Financial Institution 12 Mo. Core Value/ Value/ Assets/
--------------------- EPS(3) EPS(3) Share Share(4) Share
-------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
Market Averages. BIF-Insured Thrifts(no MHC)
--------------------------------------------
BIF-Insured Thrifts(59)..................... 1.38 1.35 14.08 13.54 143.98
NYSE Traded Companies(4).................... 1.52 1.52 19.33 17.02 138.86
AMEX Traded Companies(7).................... 1.51 1.32 15.83 15.30 148.21
NASDAQ Listed OTC Companies(48)............. 1.35 1.34 13.42 13.04 143.96
California Companies(1)..................... 1.52 1.52 12.28 12.23 114.54
Mid-Atlantic Companies(21).................. 1.04 1.02 14.58 13.91 127.92
New England Companies(31)................... 1.68 1.59 14.05 13.54 158.55
North-West Companies(3)..................... 1.14 1.50 12.99 12.53 185.79
South-East Companies(3)..................... 0.91 0.90 12.89 12.69 77.67
Thrift Strategy(44)......................... 1.35 1.28 14.40 13.95 134.35
Mortgage Banker Strategy(7)................. 1.31 1.30 12.12 11.55 150.44
Real Estate Strategy(3)..................... 1.72 1.61 11.40 11.38 106.01
Diversified Strategy(5)..................... 1.58 1.86 14.88 13.45 230.31
Companies Issuing Dividends(47)............. 1.48 1.44 14.65 13.99 158.48
Companies Without Dividends(12)............. 0.98 0.98 11.84 11.79 87.29
Equity/Assets less than 6%(4)............... 1.24 1.30 10.25 9.81 202.89
Equity/Assets 6-12%(40)..................... 1.60 1.55 13.94 13.27 164.49
Equity/Assets greater than 12%(15).......... 0.89 0.89 15.43 15.17 80.41
Converted Last 3 Mths (no MHC)(4)........... 0.49 0.58 13.15 13.05 56.13
Actively Traded Companies(17)............... 2.02 1.96 17.20 16.31 193.16
Market Value Below $20 Million(2)........... 0.63 0.52 9.15 9.10 97.77
Holding Company Structure(47)............... 1.34 1.31 14.16 13.75 136.52
Assets Over $1 Billion(18).................. 1.53 1.59 16.38 15.17 172.08
Assets $500 Million-$1 Billion(15).......... 1.81 1.69 15.29 14.96 171.05
Assets $250-$500 Million(11)................ 1.19 1.14 11.40 11.10 113.11
Assets less than $250 Million(15)........... 1.03 0.96 12.56 12.45 114.90
Goodwill Companies(32)...................... 1.53 1.51 14.78 13.75 167.92
Non-Goodwill Companies(27).................. 1.21 1.17 13.33 13.33 118.19
</TABLE>
- ----------------------
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1996 or 1997.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common
equity and assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics. (9) For MHC institutions, market
value reflects share price multiplied by public (non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe
are reliable, but we cannot guarantee the accuracy or completeness
of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. MHC Institutions
---------------------------------
SAIF-Insured Thrifts(19)................... 25.67 8,626 63.9 27.05 13.00 24.91 3.90 110.88 11.35
BIF-Insured Thrifts(3)..................... 30.50 32,019 483.6 30.50 13.09 29.50 3.96 134.82 6.61
NASDAQ Listed OTC Companies(22)............ 26.27 11,550 116.4 27.48 13.01 25.49 3.91 113.87 10.75
Florida Companies(3)....................... 34.75 5,939 97.6 38.07 19.19 36.00 -3.07 75.75 2.13
Mid-Atlantic Companies(11)................. 22.47 11,406 67.5 23.25 9.84 21.07 6.90 145.65 14.35
Mid-West Companies(5)...................... 27.47 2,277 28.0 28.88 15.54 27.03 1.15 73.40 9.17
New England Companies(1)................... 38.75 61,162 947.6 38.75 19.00 38.00 1.97 66.10 1.97
Thrift Strategy(20)........................ 25.49 6,418 50.9 26.87 13.08 24.70 4.10 106.37 10.40
Mortgage Banker Strategy(1)................ 24.75 33,790 202.2 24.75 6.04 24.00 3.13 266.67 24.50
Diversified Strategy(1).................... 38.75 61,162 947.6 38.75 19.00 38.00 1.97 66.10 1.97
Companies Issuing Dividends(22)............ 26.27 11,550 116.4 27.48 13.01 25.49 3.91 113.87 10.75
Equity/Assets 6-12%(16).................... 28.15 14,371 146.3 29.53 13.11 27.26 4.40 125.42 12.97
Equity/Assets >12%(6)...................... 20.66 3,088 26.7 21.31 12.71 20.16 2.44 79.24 4.11
Holding Company Structure(3)............... 26.13 2,566 25.9 27.63 12.09 25.50 2.98 134.33 7.35
Assets Over $1 Billion(6).................. 27.94 37,133 373.6 28.97 12.73 27.31 2.84 128.31 10.73
Assets $500 Million-$1 Billion(2).......... 38.25 5,095 94.5 40.75 19.63 40.75 -6.13 91.25 8.11
Assets $250-$500 Million(6)................ 30.00 3,387 35.5 31.25 15.46 28.85 3.91 87.01 5.48
Assets less than $250 Million(8)........... 21.48 2,519 18.8 22.57 10.82 20.34 5.95 124.21 14.16
Goodwill Companies(9)...................... 28.29 25,707 260.1 28.98 13.14 27.25 4.14 131.86 11.13
Non-Goodwill Companies(13)................. 25.06 3,056 30.1 26.58 12.93 24.43 3.77 103.08 10.53
MHC Institutions(22)....................... 26.27 11,550 116.4 27.48 13.01 25.49 3.91 113.87 10.75
</TABLE>
<TABLE>
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
Market Averages. MHC Institutions
---------------------------------
SAIF-Insured Thrifts(19)................... 0.66 0.62 9.91 9.82 89.11
BIF-Insured Thrifts(3)..................... 1.08 0.73 9.90 9.25 101.13
NASDAQ Listed OTC Companies(22)............ 0.71 0.63 9.91 9.75 90.61
Florida Companies(3)....................... 1.00 0.89 14.22 14.18 146.68
Mid-Atlantic Companies(11)................. 0.51 0.50 8.18 7.93 68.27
Mid-West Companies(5)...................... 0.80 0.75 11.21 11.18 102.04
New England Companies(1)................... 1.51 0.87 11.61 11.55 133.81
Thrift Strategy(20)........................ 0.66 0.63 10.12 9.98 89.34
Mortgage Banker Strategy(1)................ 0.53 0.45 5.29 4.72 65.15
Diversified Strategy(1).................... 1.51 0.87 11.61 11.55 133.81
Companies Issuing Dividends(22)............ 0.71 0.63 9.91 9.75 90.61
Equity/Assets 6-12%(16).................... 0.75 0.65 9.79 9.58 100.59
Equity/Assets >12%(6)...................... 0.58 0.58 10.27 10.27 60.67
Holding Company Structure(3)............... 0.74 0.68 9.46 8.84 90.74
Assets Over $1 Billion(6).................. 0.85 0.63 8.50 8.20 100.29
Assets $500 Million-$1 Billion(2).......... 1.07 0.98 15.79 15.79 139.20
Assets $250-$500 Million(6)................ 0.83 0.80 10.83 10.80 102.70
Assets less than $250 Million(8)........... 0.51 0.49 9.35 9.17 71.22
Goodwill Companies(9)...................... 0.87 0.71 9.42 8.99 105.26
Non-Goodwill Companies(13)................. 0.61 0.59 10.20 10.20 81.82
MHC Institutions(22)....................... 0.71 0.63 9.91 9.75 90.61
</TABLE>
- ---------------------------
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1996 or 1997.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common
equity and assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by
public (non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe
are reliable, but we cannot guarantee the accuracy or completeness
of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NYSE Traded Companies
---------------------
AHM Ahmanson and Co. H.F. of CA(8)..... 78.75 93,156 7,336.0 78.75 35.25 63.81 23.41 99.37 17.64
CFB Commercial Federal Corp. of NE..... 35.25 32,599 1,149.1 36.50 21.42 35.00 0.71 46.88 -0.87
DME Dime Bancorp, Inc. of NY*.......... 29.88 116,358 3,476.8 31.06 14.88 29.94 -0.20 83.88 -1.22
DSL Downey Financial Corp. of CA....... 32.06 26,756 857.8 32.06 18.10 29.69 7.98 53.03 12.73
FED FirstFed Fin. Corp. of CA.......... 39.88 10,588 422.2 40.81 22.50 39.38 1.27 63.58 2.92
GSB Golden State Bancorp of CA(8)...... 37.81 51,023 1,929.2 38.81 22.50 35.50 6.51 48.98 0.99
GDW Golden West Fin. Corp. of CA....... 97.81 57,069 5,581.9 97.81 59.88 94.31 3.71 43.31 0.00
GPT GreenPoint Fin. Corp. of NY*....... 37.06 84,640 3,136.8 37.31 25.75 36.63 1.17 35.70 2.15
JSB JSB Financial, Inc. of NY*......... 54.38 9,920 539.4 55.25 40.00 53.88 0.93 32.63 8.63
NYB New York Bancorp, Inc. of NY(8).... 44.63 21,359 953.3 44.63 20.81 42.63 4.69 100.86 12.36
OCN Ocwen Financial Corp. of FL........ 28.38 60,566 1,718.9 30.38 13.00 28.75 -1.29 78.72 11.56
SIB Staten Island Bancorp of NY*....... 20.94 45,130 945.0 21.00 18.81 19.94 5.02 74.50 0.00
WES Westcorp Inc. of Orange CA......... 19.13 26,279 502.7 23.50 13.25 19.63 -2.55 15.94 13.33
AMEX Traded Companies
---------------------
ANA Acadiana Bancshares, Inc of LA.... 22.13 2,697 59.7 24.75 17.50 22.25 -0.54 22.06 -5.35
ANE Alliance Bancorp of NE, of CT*.... 20.88 1,636 34.2 21.13 10.41 21.13 -1.18 90.34 26.55
BKC American Bank of Waterbury CT*.... 52.63 2,321 122.2 52.63 31.00 51.63 1.94 68.42 7.96
BFD BostonFed Bancorp of MA........... 22.19 5,520 122.5 22.44 14.38 21.63 2.59 39.74 1.42
CFX CFX Corp of Keene NH(8)*.......... 30.94 24,071 744.8 31.25 15.50 30.25 2.28 82.00 1.01
CNY Carver Bancorp, Inc. of NY........ 15.13 2,314 35.0 17.13 9.13 15.00 0.87 51.30 -6.89
CBK Citizens First Fin.Corp. of IL.... 22.38 2,397 53.6 22.38 14.63 21.63 3.47 42.10 10.52
EBI Equality Bancorp, Inc. of MO...... 15.50 2,486 38.5 16.00 12.50 15.94 -2.76 55.00 6.90
ESX Essex Bancorp of Norfolk VA(8).... 4.94 1,058 5.2 7.94 1.00 5.19 -4.82 147.00 25.38
FCB Falmouth Bancorp, Inc. of MA*..... 23.63 1,455 34.4 23.63 13.25 22.13 6.78 57.53 15.27
FAB FirstFed America Bancorp of MA.... 20.25 8,707 176.3 22.13 13.63 19.63 3.16 37.29 -7.45
GAF GA Financial Corp. of PA.......... 19.00 7,718 146.6 19.81 14.88 19.13 -0.68 21.56 0.64
HBS Haywood Bancshares, Inc. of NC*... 22.25 1,250 27.8 23.00 15.63 22.25 0.00 29.89 -1.11
KNK Kankakee Bancorp, Inc. of IL...... 36.13 1,372 49.6 37.75 26.63 35.38 2.12 36.34 -4.29
KYF Kentucky First Bancorp of KY...... 14.00 1,298 18.2 15.00 10.56 13.75 1.82 19.15 -6.29
MBB MSB Bancorp of Middletown NY(8)*.. 36.38 2,844 103.5 37.63 16.38 34.88 4.30 104.96 -3.32
NBN Northeast Bancorp of ME*.......... 17.25 2,223 38.3 19.50 9.00 18.00 -4.17 89.98 -9.21
PDB Piedmont Bancorp, Inc. of NC...... 10.63 2,751 29.2 11.63 10.00 10.63 0.00 -3.36 -2.30
SSB Scotland Bancorp, Inc. of NC...... 10.19 1,914 19.5 19.25 9.88 10.13 0.59 -36.31 2.52
SZB SouthFirst Bancshares of AL....... 22.00 976 21.5 22.75 13.88 21.63 1.71 54.39 -3.30
SRN Southern Banc Company of AL....... 16.63 1,230 20.5 19.13 14.25 16.63 0.00 14.69 -6.31
SSM Stone Street Bancorp of NC........ 20.25 1,898 38.4 27.25 19.25 20.13 0.60 -20.59 -8.74
TSH Teche Holding Company of LA....... 21.75 3,438 74.8 23.50 15.50 20.38 6.72 36.96 -4.40
FTF Texarkana Fst. Fin. Corp of AR.... 28.00 1,760 49.3 29.50 15.63 27.88 0.43 70.94 12.00
THR Three Rivers Fin. Corp. of MI..... 22.00 825 18.2 23.50 13.75 22.94 -4.10 46.67 1.15
WSB Washington SB, FSB of MD.......... 8.31 4,395 36.5 9.50 4.88 8.38 -0.84 61.99 -8.28
WFI Winton Financial Corp. of OH...... 28.50 2,006 57.2 28.50 12.00 27.50 3.64 127.64 39.84
NASDAQ Listed OTC Companies
---------------------------
FBCV 1st Bancorp of Vincennes IN....... 27.25 1,090 29.7 29.29 18.41 27.25 0.00 34.10 -6.96
FBER 1st Bergen Bancorp of NJ.......... 20.75 2,865 59.4 20.75 12.88 19.50 6.41 50.91 8.47
AFED AFSALA Bancorp, Inc. of NY........ 20.00 1,383 27.7 20.25 12.56 19.94 0.30 40.35 3.90
ALBK ALBANK Fin. Corp. of Albany NY.... 49.25 12,907 635.7 51.44 34.00 49.88 -1.26 41.73 -4.26
AMFC AMB Financial Corp. of IN......... 17.63 964 17.0 17.88 13.13 17.25 2.20 28.22 11.02
ASBP ASB Financial Corp. of OH......... 14.25 1,653 23.6 14.63 11.50 14.50 -1.72 22.53 7.55
ABBK Abington Bancorp of MA*........... 20.88 3,637 75.9 22.00 10.25 20.75 0.63 98.86 -0.57
</TABLE>
<TABLE>
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
NYSE Traded Companies
---------------------
AHM Ahmanson and Co. H.F. of CA(8)..... 4.08 3.58 20.57 17.56 501.08
CFB Commercial Federal Corp. of NE..... 2.09 2.05 14.06 12.68 220.54
DME Dime Bancorp, Inc. of NY*.......... 1.05 1.05 11.30 9.27 187.77
DSL Downey Financial Corp. of CA....... 1.69 1.62 16.08 15.89 218.11
FED FirstFed Fin. Corp. of CA.......... 2.18 2.14 21.04 20.87 392.91
GSB Golden State Bancorp of CA(8)...... 1.85 2.22 18.96 17.11 314.15
GDW Golden West Fin. Corp. of CA....... 6.21 6.11 47.28 47.28 693.73
GPT GreenPoint Fin. Corp. of NY*....... 1.74 1.69 15.00 8.18 154.58
JSB JSB Financial, Inc. of NY*......... 2.96 2.63 35.83 35.83 154.34
NYB New York Bancorp, Inc. of NY(8).... 2.48 2.53 8.34 8.34 152.85
OCN Ocwen Financial Corp. of FL........ 1.30 0.37 6.93 6.67 50.67
SIB Staten Island Bancorp of NY*....... 0.32 0.70 15.20 14.79 58.75
WES Westcorp Inc. of Orange CA......... 1.40 -0.28 13.27 13.24 141.90
AMEX Traded Companies
---------------------
ANA Acadiana Bancshares, Inc of LA..... 0.97 0.94 17.22 17.22 101.60
ANE Alliance Bancorp of NE, of CT*..... 1.23 0.86 11.49 11.17 151.06
BKC American Bank of Waterbury CT*..... 3.42 2.96 24.82 24.01 275.32
BFD BostonFed Bancorp of MA............ 1.28 1.14 14.78 14.24 176.57
CFX CFX Corp of Keene NH(8)*........... 0.55 0.89 10.21 9.85 119.39
CNY Carver Bancorp, Inc. of NY......... -0.20 0.03 15.24 14.66 179.67
CBK Citizens First Fin.Corp. of IL..... 0.79 0.53 15.84 15.84 114.14
EBI Equality Bancorp, Inc. of MO....... 0.46 0.10 10.31 10.31 92.23
ESX Essex Bancorp of Norfolk VA(8)..... 0.20 0.18 0.03 -0.14 181.37
FCB Falmouth Bancorp, Inc. of MA*...... 0.63 0.53 16.05 16.05 67.05
FAB FirstFed America Bancorp of MA..... 0.20 0.63 14.87 14.87 133.17
GAF GA Financial Corp. of PA........... 1.08 1.02 15.05 14.90 101.57
HBS Haywood Bancshares, Inc. of NC*.... 1.56 1.56 17.34 16.74 122.24
KNK Kankakee Bancorp, Inc. of IL....... 2.20 2.15 27.57 25.99 250.30
KYF Kentucky First Bancorp of KY....... 0.77 0.76 11.32 11.32 66.49
MBB MSB Bancorp of Middletown NY(8)*... 1.52 1.14 22.40 11.94 272.15
NBN Northeast Bancorp of ME*........... 0.70 0.68 9.46 8.53 125.39
PDB Piedmont Bancorp, Inc. of NC....... 0.54 0.54 7.66 7.66 47.32
SSB Scotland Bancorp, Inc. of NC....... 0.58 0.58 7.73 7.73 32.12
SZB SouthFirst Bancshares of AL........ 0.63 0.64 16.39 15.98 169.45
SRN Southern Banc Company of AL........ 0.41 0.41 14.74 14.61 86.31
SSM Stone Street Bancorp of NC......... 0.81 0.81 16.37 16.37 56.95
TSH Teche Holding Company of LA........ 1.13 1.08 16.09 16.09 118.85
FTF Texarkana Fst. Fin. Corp of AR..... 1.72 1.68 15.52 15.52 102.42
THR Three Rivers Fin. Corp. of MI...... 1.00 0.94 15.72 15.67 114.20
WSB Washington SB, FSB of MD........... 0.52 0.31 5.13 5.13 60.27
WFI Winton Financial Corp. of OH....... 1.61 1.32 11.60 11.37 161.76
NASDAQ Listed OTC Companies
---------------------------
FBCV 1st Bancorp of Vincennes IN........ 1.81 1.18 21.08 20.71 234.80
FBER 1st Bergen Bancorp of NJ........... 0.74 0.74 13.71 13.71 101.37
AFED AFSALA Bancorp, Inc. of NY......... 0.89 0.89 14.52 14.52 115.99
ALBK ALBANK Fin. Corp. of Albany NY..... 3.36 3.34 27.86 21.64 316.35
AMFC AMB Financial Corp. of IN.......... 1.06 0.67 15.32 15.32 103.74
ASBP ASB Financial Corp. of OH.......... 0.62 0.62 10.59 10.59 68.47
ABBK Abington Bancorp of MA*............ 1.20 1.06 9.99 9.09 146.27
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
------------------------- ------------------------------------------------
52 Week (1) % Change From
Shares Market -------------- -------------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
- --------------------- -------- -------- --------- ------ ------- ------- ------- ------- ---------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AABC Access Anytime Bancorp of NM............. 10.81 1,217 13.2 11.38 5.15 10.88 -0.64 109.90 -1.73
AFBC Advance Fin. Bancorp of WV............... 19.88 1,084 21.5 20.88 13.50 19.75 0.66 39.51 14.38
AADV Advantage Bancorp, Inc. of WI(8)......... 68.75 3,236 222.5 70.88 36.50 68.50 0.36 69.75 -3.01
AFCB Affiliated Comm BC, Inc of MA(8)......... 37.31 6,504 242.7 37.75 19.00 36.94 1.00 79.38 -1.17
ALBC Albion Banc Corp. of Albion NY........... 10.77 750 8.1 14.17 6.04 11.00 -2.09 78.31 -19.20
ABCL Alliance Bancorp, Inc. of IL............. 28.75 8,022 230.6 28.75 18.50 26.75 7.48 43.75 8.49
AHCI Ambanc Holding Co., Inc. of NY*.......... 19.13 4,306 82.4 19.50 12.69 18.13 5.52 37.82 2.03
ASBI Ameriana Bancorp of IN................... 20.50 3,233 66.3 22.00 15.25 20.75 -1.20 31.16 3.12
ABCW Anchor Bancorp Wisconsin of WI........... 44.50 9,052 402.8 44.50 21.00 41.00 8.54 89.36 22.32
ANDB Andover Bancorp, Inc. of MA*............. 40.06 5,168 207.0 42.00 26.25 39.63 1.09 49.76 -0.47
ASFC Astoria Financial Corp. of NY............ 61.88 26,198 1,621.1 61.88 34.75 58.00 6.69 59.16 11.00
AVND Avondale Fin. Corp. of IL................ 15.13 3,324 50.3 18.88 12.75 15.13 0.00 -12.29 -6.89
BKCT Bancorp Connecticut of CT*............... 20.00 5,092 101.8 25.00 11.00 19.88 0.60 69.35 -4.76
BPLS Bank Plus Corp. of CA.................... 15.25 19,367 295.3 15.63 9.63 14.75 3.39 19.61 20.74
BNKU Bank United Corp. of TX.................. 48.38 31,596 1,528.6 49.88 28.25 44.50 8.72 54.82 -1.14
BWFC Bank West Fin. Corp. of MI............... 14.38 2,623 37.7 17.50 7.50 14.63 -1.71 85.55 -10.85
BANC BankAtlantic Bancorp of FL............... 14.88 25,760 383.3 17.00 12.13 14.75 0.88 10.22 -11.16
BKUNA BankUnited Fin. Corp. of FL.............. 13.88 14,209 197.2 15.63 8.50 14.25 -2.60 26.18 -9.93
BVCC Bay View Capital Corp. of CA............. 35.75 12,070 431.5 37.25 22.63 35.00 2.14 38.14 -1.38
FSNJ Bayonne Bancshares of NJ................. 14.81 9,050 134.0 14.81 7.93 14.00 5.79 81.94 10.69
BFSB Bedford Bancshares, Inc. of VA........... 29.13 1,142 33.3 34.75 19.00 29.00 0.45 45.65 -14.32
BFFC Big Foot Fin. Corp. of IL................ 23.25 2,513 58.4 23.94 13.88 23.88 -2.64 64.54 10.71
BYFC Broadway Fin. Corp. of CA................ 12.50 831 10.4 13.75 10.50 12.75 -1.96 11.11 -5.66
CBES CBES Bancorp, Inc. of MO................. 25.25 1,022 25.8 26.00 15.88 26.00 -2.88 50.75 13.48
CCFH CCF Holding Company of GA................ 21.50 900 19.4 22.00 14.32 22.00 -2.27 47.77 6.81
CENF CENFED Financial Corp. of CA(8).......... 45.25 6,006 271.8 46.25 26.38 42.13 7.41 52.00 0.56
CFSB CFSB Bancorp of Lansing MI............... 29.13 7,607 221.6 31.13 12.88 29.25 -0.41 118.53 10.97
CKFB CKF Bancorp of Danville KY............... 20.50 867 17.8 21.25 17.75 21.25 -3.53 13.89 10.81
CNSB CNS Bancorp, Inc. of MO.................. 18.25 1,653 30.2 21.50 15.00 18.25 0.00 5.80 -10.98
CSBF CSB Financial Group Inc of IL............ 13.75 840 11.6 13.75 11.00 13.63 0.88 24.32 1.85
CBCI Calumet Bancorp of Chicago IL............ 36.75 3,141 115.4 39.00 22.83 37.50 -2.00 54.22 10.53
CAFI Camco Fin. Corp. of OH................... 26.38 3,217 84.9 27.00 16.67 26.00 1.46 51.78 3.45
CMRN Cameron Fin. Corp. of MO................. 20.25 2,564 51.9 21.00 15.88 19.75 2.53 25.54 -1.22
CAPS Capital Savings Bancorp of MO(8)......... 23.13 1,891 43.7 25.25 12.75 22.50 2.80 81.41 -8.40
CFNC Carolina Fincorp of NC*.................. 17.31 1,852 32.1 18.75 14.13 17.13 1.05 17.36 -6.43
CASB Cascade Financial Corp. of WA............ 14.75 3,395 50.1 16.80 11.60 14.25 3.51 18.95 11.32
CATB Catskill Fin. Corp. of NY*............... 17.88 4,630 82.8 19.13 13.94 17.75 0.73 8.36 -5.30
CNIT Cenit Bancorp of Norfolk VA.............. 79.00 1,654 130.7 80.00 40.00 77.00 2.60 76.54 -0.63
CEBK Central Co-Op. Bank of MA*............... 32.25 1,965 63.4 33.50 15.88 32.50 -0.77 76.71 13.16
CENB Century Bancorp, Inc. of NC.............. 86.12 407 35.1 87.25 68.00 87.25 -1.30 23.03 1.62
CBSB Charter Financial Inc. of IL(8).......... 33.38 4,174 139.3 33.50 16.75 32.13 3.89 97.05 32.83
COFI Charter One Financial of OH.............. 65.63 63,849 4,190.4 65.63 40.24 60.69 8.14 52.27 3.96
CVAL Chester Valley Bancorp of PA............. 35.25 2,169 76.5 37.00 15.71 35.00 0.71 111.46 20.51
CTZN CitFed Bancorp of Dayton OH(8)........... 55.13 13,003 716.9 55.13 22.00 51.13 7.82 129.71 41.36
CLAS Classic Bancshares, Inc. of KY........... 20.25 1,300 26.3 21.50 12.25 20.50 -1.22 52.83 20.90
CBSA Coastal Bancorp of Houston TX............ 32.88 5,009 164.7 35.50 22.75 33.00 -0.36 24.64 -5.73
CFCP Coastal Fin. Corp. of SC................. 22.00 4,674 102.8 27.75 16.13 21.00 4.76 21.61 -10.20
CMSB Commonwealth Bancorp Inc of PA........... 21.00 16,247 341.2 21.63 13.50 20.00 5.00 35.48 5.63
CMSV Commty. Svgs, MHC of FL (48.5)........... 38.25 5,095 94.5 40.75 19.63 40.75 -6.13 91.25 8.11
CFTP Community Fed. Bancorp of MS............. 18.63 4,629 86.2 21.00 16.38 18.63 0.00 -0.64 -8.00
CFFC Community Fin. Corp. of VA............... 30.25 1,277 38.6 30.75 21.50 29.00 4.31 31.52 9.48
CFBC Community First Bnkg Co. of GA........... 45.00 2,414 108.6 46.50 31.88 45.50 -1.10 125.00 2.27
CIBI Community Inv. Bancorp of OH............. 18.00 902 16.2 18.75 11.50 17.38 3.57 58.87 11.39
COOP Cooperative Bancshares of NC............. 19.75 2,984 58.9 25.00 10.25 20.25 -2.47 92.68 -19.39
CRZY Crazy Woman Creek Bncorp of WY........... 17.25 955 16.5 17.25 13.00 17.13 0.70 25.45 15.00
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
- --------------------- -------- ------- ------- ------- ------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
AABC Access Anytime Bancorp of NM............. 1.26 1.17 7.51 7.51 86.80
AFBC Advance Fin. Bancorp of WV............... 0.84 0.81 15.17 15.17 99.66
AADV Advantage Bancorp, Inc. of WI(8)......... 3.57 3.13 31.79 29.74 317.22
AFCB Affiliated Comm BC, Inc of MA(8)......... 1.82 1.76 17.38 17.29 177.59
ALBC Albion Banc Corp. of Albion NY........... 0.44 0.43 8.09 8.09 94.41
ABCL Alliance Bancorp, Inc. of IL............. 1.28 1.42 16.32 16.13 170.01
AHCI Ambanc Holding Co., Inc. of NY*.......... -0.61 -0.69 13.98 13.98 122.92
ASBI Ameriana Bancorp of IN................... 1.12 0.98 13.74 13.74 120.90
ABCW Anchor Bancorp Wisconsin of WI........... 2.20 2.03 14.25 14.02 214.45
ANDB Andover Bancorp, Inc. of MA*............. 2.56 2.50 20.72 20.72 255.95
ASFC Astoria Financial Corp. of NY............ 2.56 2.38 32.42 22.56 401.88
AVND Avondale Fin. Corp. of IL................ -3.76 -3.19 13.83 13.83 163.12
BKCT Bancorp Connecticut of CT*............... 1.16 1.03 9.22 9.22 87.00
BPLS Bank Plus Corp. of CA.................... 0.65 0.73 9.36 8.53 215.20
BNKU Bank United Corp. of TX.................. 2.52 2.21 19.39 18.89 396.36
BWFC Bank West Fin. Corp. of MI............... 0.43 0.32 8.83 8.83 64.65
BANC BankAtlantic Bancorp of FL............... 1.06 0.56 6.08 5.04 110.44
BKUNA BankUnited Fin. Corp. of FL.............. 0.38 0.29 9.13 8.10 213.16
BVCC Bay View Capital Corp. of CA............. 1.16 1.58 14.39 11.94 268.97
FSNJ Bayonne Banchsares of NJ................. 0.30 0.43 10.63 10.63 67.47
BFSB Bedford Bancshares, Inc. of VA........... 1.42 1.41 17.41 17.41 119.88
BFFC Big Foot Fin. Corp. of IL................ 0.51 0.45 15.09 15.09 86.06
BYFC Broadway Fin. Corp. of CA................ 0.42 0.48 14.77 14.77 150.11
CBES CBES Bancorp, Inc. of MO................. 1.09 0.95 17.16 17.16 108.73
CCFH CCF Holding Company of GA................ 0.15 -0.25 13.05 13.05 138.92
CENF CENFED Financial Corp. of CA(8).......... 2.30 2.07 22.58 22.54 367.81
CFSB CFSB Bancorp of Lansing MI............... 1.40 1.31 8.88 8.88 112.12
CKFB CKF Bancorp of Danville KY............... 1.29 0.97 15.87 15.87 72.51
CNSB CNS Bancorp, Inc. of MO.................. 0.52 0.52 14.47 14.47 59.22
CSBF CSB Financial Group Inc of IL............ 0.29 0.25 13.87 13.09 57.78
CBCI Calumet Bancorp of Chicago IL............ 2.54 2.56 25.98 25.98 154.93
CAFI Camco Fin. Corp. of OH................... 1.75 1.42 15.22 14.12 161.82
CMRN Cameron Fin. Corp. of MO................. 0.94 0.93 17.66 17.66 82.39
CAPS Capital Savings Bancorp of MO(8)......... 1.25 1.20 12.08 12.08 128.08
CFNC Carolina Fincorp of NC*.................. 0.73 0.70 14.06 14.06 61.91
CASB Cascade Financial Corp. of WA............ 0.74 0.72 8.63 8.63 124.46
CATB Catskill Fin. Corp. of NY*............... 0.82 0.82 15.48 15.48 63.64
CNIT Cenit Bancorp of Norfolk VA.............. 3.39 3.15 29.47 26.99 424.25
CEBK Central Co-Op. Bank of MA*............... 1.49 1.41 18.05 16.26 182.40
CENB Century Bancorp, Inc. of NC.............. 4.00 4.01 75.76 75.76 251.30
CBSB Charter Financial Inc. of IL(8).......... 1.26 1.39 14.24 12.75 91.61
COFI Charter One Financial of OH.............. 1.97 2.88 21.56 20.15 309.48
CVAL Chester Valley Bancorp of PA............. 1.45 1.38 13.23 13.23 150.14
CTZN CitFed Bancorp of Dayton OH(8)........... 2.10 2.10 16.14 14.74 266.12
CLAS Classic Bancshares, Inc. of KY........... 0.82 0.96 15.13 12.85 101.68
CBSA Coastal Bancorp of Houston TX............ 2.40 2.46 20.29 17.06 584.86
CFCP Coastal Fin. Corp. of SC................. 1.31 1.10 7.21 7.21 120.64
CMSB Commonwealth Bancorp Inc of PA........... 1.01 0.77 13.22 10.44 139.63
CMSV Commty. Svgs, MHC of FL (48.5)........... 1.07 0.98 15.79 15.79 139.20
CFTP Community Fed. Bancorp of MS............. 0.61 0.61 13.07 13.07 49.40
CFFC Community Fin. Corp. of VA............... 1.47 1.48 19.52 19.43 143.21
CFBC Community First Bnkg Co. of GA........... 0.96 0.96 29.10 28.71 163.45
CIBI Community Inv. Bancorp of OH............. 1.02 1.02 12.31 12.31 106.29
COOP Cooperative Bancshares of NC............. 0.75 0.74 9.48 9.48 123.70
CRZY Crazy Woman Creek Bncorp of WY........... 0.75 0.76 15.04 15.04 63.64
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- ---------------------------------------------
% Change From
Shares Market 52 Week (1) -----------------------
Price/ Outst- Capital- ------------- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ----- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DNFC D&N Financial Corp. of MI........ 27.75 9,099 252.5 28.06 15.68 26.38 5.19 67.27 4.72
DCBI Delphos Citizens Bancorp of OH... 21.25 1,946 41.4 24.25 12.44 21.25 0.00 57.41 2.41
DIME Dime Community Bancorp of NY*.... 24.13 12,438 300.1 25.50 16.63 24.50 -1.51 33.09 1.60
DIBK Dime Financial Corp. of CT*...... 30.25 5,164 156.2 32.00 18.00 30.00 0.83 57.14 -0.82
EGLB Eagle BancGroup of IL............ 20.75 1,178 24.4 20.88 14.75 20.38 1.82 31.75 9.90
EBSI Eagle Bancshares of Tucker GA.... 21.38 5,719 122.3 22.38 15.25 21.25 0.61 29.58 -2.82
EGFC Eagle Financial Corp. of CT(8)... 55.56 6,514 361.9 55.56 26.75 53.00 4.83 93.25 1.02
ETFS East Texas Fin. Serv. of TX...... 22.50 1,026 23.1 23.75 16.88 21.75 3.45 25.00 -5.26
ESBK Elmira Svgs Bank (The) of NY*.... 28.66 741 21.2 30.38 17.62 28.73 -0.24 54.33 -4.47
EMLD Emerald Financial Corp. of OH.... 22.00 5,073 111.6 24.75 11.38 21.50 2.33 79.59 -0.59
EFBC Empire Federal Bancorp of MT..... 18.00 2,592 46.7 18.25 12.50 17.25 4.35 32.06 5.08
EFBI Enterprise Fed. Bancorp of OH.... 33.00 1,986 65.5 35.00 15.25 32.50 1.54 112.90 4.76
EQSB Equitable FSB of Wheaton MD...... 31.50 1,215 38.3 31.50 16.63 29.75 5.88 86.61 18.87
FCBF FCB Fin. Corp. of Neenah WI...... 32.25 3,863 124.6 33.31 20.13 30.25 6.61 43.33 9.32
FFDF FFD Financial Corp. of OH........ 20.88 1,445 30.2 21.13 13.00 20.50 1.85 49.14 16.00
FFLC FFLC Bancorp of Leesburg FL...... 19.75 3,744 73.9 23.50 15.00 20.00 -1.25 26.60 -9.20
FFFC FFVA Financial Corp. of VA(8).... 38.25 4,581 175.2 40.00 20.50 38.00 0.66 73.86 -2.25
FFWC FFW Corporation of Wabash IN..... 19.00 1,443 27.4 21.50 12.75 19.75 -3.80 43.40 0.00
FFYF FFY Financial Corp. of OH........ 34.38 4,070 139.9 35.38 25.25 34.00 1.12 36.16 3.77
FMCO FMS Financial Corp. of NJ........ 34.75 2,388 83.0 35.75 18.75 34.00 2.21 75.95 -2.11
FFHH FSF Financial Corp. of MN........ 20.00 3,015 60.3 21.25 16.38 20.00 0.00 14.29 -4.49
FOBC Fed One Bancorp of Wheeling WV(8) 37.00 2,375 87.9 37.00 17.63 35.25 4.96 97.33 34.55
FBCI Fidelity Bancorp of Chicago IL... 25.00 2,814 70.3 26.00 18.50 24.88 0.48 28.21 -2.46
FSBI Fidelity Bancorp, Inc. of PA .... 30.75 1,562 48.0 32.00 18.41 32.00 -3.91 47.06 6.03
FFFL Fidelity Bcsh MHC of FL (47.7)... 31.25 6,783 100.8 35.38 18.75 31.25 0.00 60.26 -3.85
FFED Fidelity Fed. Bancorp of IN...... 9.38 3,128 29.3 10.50 7.50 9.88 -5.06 1.41 -9.02
FFOH Fidelity Financial of OH......... 18.00 5,593 100.7 18.25 12.38 17.50 2.86 32.06 16.13
FIBC Financial Bancorp, Inc. of NY.... 25.75 1,710 44.0 27.00 14.88 25.75 0.00 49.28 6.71
FBSI First Bancshares, Inc. of MO..... 16.75 2,186 36.6 17.50 9.50 16.00 4.69 67.50 7.17
FBBC First Bell Bancorp of PA......... 21.00 6,511 136.7 21.00 14.50 19.00 10.53 29.23 10.53
SKBO First Carnegie MHC of PA(45.0)... 19.50 2,300 20.2 20.00 11.63 19.25 1.30 95.00 4.00
FSTC First Citizens Corp of GA........ 32.00 2,765 88.5 35.50 15.50 31.50 1.59 100.00 -5.88
FCME First Coastal Corp. of ME*....... 13.75 1,359 18.7 15.75 8.88 14.38 -4.38 48.65 -7.59
FFBA First Colorado Bancorp of CO..... 28.44 16,808 478.0 28.75 16.00 28.38 0.21 68.48 19.75
FDEF First Defiance Fin.Corp. of OH... 15.38 8,528 131.2 16.25 12.38 15.38 0.00 10.81 -3.87
FESX First Essex Bancorp of MA*....... 24.63 7,536 185.6 26.13 14.50 24.63 0.00 57.58 5.94
FFSX First FSB MHC Sxld of IA(46.1)... 35.75 2,834 46.6 35.75 20.75 33.25 7.52 74.39 12.60
FFES First Fed of E. Hartford CT...... 40.00 2,706 108.2 40.00 23.00 40.00 0.00 48.15 7.38
BDJI First Fed. Bancorp. of MN........ 20.00 998 20.0 22.00 11.83 20.00 0.00 60.00 -9.09
FFBH First Fed. Bancshares of AR...... 26.25 4,896 128.5 27.00 17.50 25.25 3.96 40.90 10.53
FTFC First Fed. Capital Corp. of WI... 31.50 9,191 289.5 34.00 16.83 32.00 -1.56 67.29 -7.02
FFKY First Fed. Fin. Corp. of KY...... 21.48 4,144 89.0 23.50 18.25 22.25 -3.46 7.40 -5.58
FFBZ First Federal Bancorp of OH...... 25.00 1,575 39.4 25.00 17.00 22.50 11.11 35.14 18.32
FFCH First Fin. Holdings Inc. of SC... 51.75 6,761 349.9 53.50 23.75 52.25 -0.96 93.46 -2.60
FFHS First Franklin Corp. of OH....... 26.50 1,192 31.6 31.25 17.00 26.75 -0.93 41.33 -15.20
FGHC First Georgia Hold. Corp of GA... 10.75 3,052 32.8 10.75 7.00 10.75 0.00 48.28 13.16
FSPG First Home Bancorp of NJ(8)...... 31.63 2,708 85.7 31.63 17.88 30.75 2.86 66.47 4.98
FFSL First Independence Corp. of KS... 15.00 954 14.3 15.63 10.88 14.88 0.81 27.66 7.14
FISB First Indiana Corp. of IN........ 27.00 12,668 342.0 30.00 14.48 27.69 -2.49 58.08 7.10
FKFS First Keystone Fin. Corp of PA... 17.00 2,413 41.0 19.00 10.63 17.50 -2.86 52.74 -4.92
FLKY First Lancaster Bncshrs of KY.... 15.13 953 14.4 16.38 14.63 15.13 0.00 -3.94 -5.08
FLFC First Liberty Fin. Corp. of GA... 34.00 7,748 263.4 34.25 21.00 33.25 2.26 56.32 6.25
CASH First Midwest Fin., Inc. of OH... 22.88 2,692 61.6 23.25 15.00 23.00 -0.52 34.59 1.69
FMBD First Mutual Bancorp Inc of IL... 19.75 3,507 69.3 25.00 13.75 19.50 1.28 27.42 -21.00
FMSB First Mutual SB of Bellevue WA*.. 18.25 4,125 75.3 20.17 10.61 17.88 2.07 51.45 -1.35
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C>
DNFC D&N Financial Corp. of MI........ 1.57 1.41 10.78 10.68 199.51
DCBI Delphos Citizens Bancorp of OH... 0.93 0.93 14.83 14.83 55.37
DIME Dime Community Bancorp of NY*.... 0.95 0.91 14.97 12.94 119.64
DIBK Dime Financial Corp. of CT*...... 3.24 3.22 15.35 14.95 185.61
EGLB Eagle BancGroup of IL............ 0.43 0.31 17.24 17.24 145.28
EBSI Eagle Bancshares of Tucker GA.... 0.96 0.97 12.80 12.80 163.40
EGFC Eagle Financial Corp. of CT(8)... 1.18 1.56 23.38 18.96 331.16
ETFS East Texas Fin. Serv. of TX...... 0.71 0.66 20.45 20.45 117.05
ESBK Elmira Svgs Bank (The) of NY*.... 1.18 1.27 19.71 19.71 311.72
EMLD Emerald Financial Corp. of OH.... 1.21 1.15 9.56 9.43 119.05
EFBC Empire Federal Bancorp of MT..... 0.62 0.62 15.51 15.51 42.65
EFBI Enterprise Fed. Bancorp of OH.... 1.11 1.00 16.31 16.30 151.69
EQSB Equitable FSB of Wheaton MD...... 1.90 1.87 13.77 13.77 264.76
FCBF FCB Fin. Corp. of Neenah WI...... 1.00 0.68 18.80 18.80 135.38
FFDF FFD Financial Corp. of OH........ 1.11 0.53 15.38 15.38 63.92
FFLC FFLC Bancorp of Leesburg FL...... 1.00 0.95 13.74 13.74 106.90
FFFC FFVA Financial Corp. of VA(8).... 1.40 1.66 17.33 17.00 126.54
FFWC FFW Corporation of Wabash IN..... 1.24 1.21 12.69 11.57 132.57
FFYF FFY Financial Corp. of OH........ 1.91 1.88 20.53 20.53 151.04
FMCO FMS Financial Corp. of NJ........ 2.34 2.32 15.80 15.57 243.58
FFHH FSF Financial Corp. of MN........ 1.04 1.03 14.58 14.58 133.62
FOBC Fed One Bancorp of Wheeling WV(8) 1.37 1.35 17.09 16.37 154.43
FBCI Fidelity Bancorp of Chicago IL... 0.38 1.09 18.22 18.19 174.01
FSBI Fidelity Bancorp, Inc. of PA .... 1.77 1.73 17.21 17.21 251.65
FFFL Fidelity Bcsh MHC of FL (47.7)... 0.93 0.79 12.65 12.57 154.16
FFED Fidelity Fed. Bancorp of IN...... 0.56 0.52 5.02 5.02 69.00
FFOH Fidelity Financial of OH......... 0.87 0.84 11.49 10.13 95.67
FIBC Financial Bancorp, Inc. of NY.... 1.53 1.63 16.10 16.03 180.26
FBSI First Bancshares, Inc. of MO..... 0.86 0.82 10.64 10.64 73.89
FBBC First Bell Bancorp of PA......... 1.16 1.14 11.21 11.21 103.78
SKBO First Carnegie MHC of PA(45.0)... 0.41 0.46 10.74 10.74 62.46
FSTC First Citizens Corp of GA........ 2.15 1.92 12.34 9.73 121.95
FCME First Coastal Corp. of ME*....... 0.93 0.75 10.90 10.90 107.73
FFBA First Colorado Bancorp of CO..... 1.18 1.13 12.45 12.20 92.53
FDEF First Defiance Fin.Corp. of OH... 0.63 0.62 12.53 12.53 67.98
FESX First Essex Bancorp of MA*....... 1.29 1.15 12.08 10.62 158.90
FFSX First FSB MHC Sxld of IA(46.1)... 1.19 1.15 14.34 14.23 161.94
FFES First Fed of E. Hartford CT...... 2.06 2.28 24.76 24.76 363.17
BDJI First Fed. Bancorp. of MN........ 0.73 0.73 12.12 12.12 119.08
FFBH First Fed. Bancshares of AR...... 1.13 1.08 16.64 16.64 111.75
FTFC First Fed. Capital Corp. of WI... 1.89 1.49 11.90 11.25 168.02
FFKY First Fed. Fin. Corp. of KY...... 1.49 1.47 12.81 12.11 93.71
FFBZ First Federal Bancorp of OH...... 1.22 1.22 10.09 10.08 132.60
FFCH First Fin. Holdings Inc. of SC... 2.16 2.11 17.08 17.08 265.25
FFHS First Franklin Corp. of OH....... 1.42 1.30 17.81 17.72 193.38
FGHC First Georgia Hold. Corp of GA... 0.58 0.48 4.53 4.20 54.52
FSPG First Home Bancorp of NJ(8)...... 1.75 1.71 13.81 13.61 198.60
FFSL First Independence Corp. of KS... 0.76 0.76 11.91 11.91 119.15
FISB First Indiana Corp. of IN........ 1.40 1.13 12.08 11.94 127.36
FKFS First Keystone Fin. Corp of PA... 1.12 1.01 10.38 10.38 156.87
FLKY First Lancaster Bncshrs of KY.... 0.53 0.53 14.92 14.92 52.34
FLFC First Liberty Fin. Corp. of GA... 1.23 1.27 12.49 11.36 164.61
CASH First Midwest Fin., Inc. of OH... 1.37 1.28 16.39 14.62 151.41
FMBD First Mutual Bancorp Inc of IL... 0.28 0.23 15.45 11.85 111.62
FMSB First Mutual SB of Bellevue WA*.. 1.06 1.04 7.43 7.43 109.36
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- ---------------------------------------------
52 Week (1) % Change From
Shares Market ------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ----- ------- ------- ------- ------- -------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FNGB First Northern Cap. Corp of WI...................... 13.50 8,846 119.4 14.00 9.13 13.00 3.85 42.11 -3.57
FFPB First Palm Beach Bancorp of FL...................... 37.50 5,055 189.6 44.94 26.56 37.75 -0.66 30.98 -13.05
FSLA First SB SLA MHC of NJ (47.5)(8).................... 44.38 8,016 151.1 54.50 19.09 42.25 5.04 116.91 -18.57
FWWB First Savings Bancorp of WA......................... 27.00 10,156 274.2 28.56 18.75 26.00 3.85 40.26 -1.82
FSFF First SecurityFed Fin of IL......................... 15.50 6,408 99.3 16.63 14.50 15.38 0.78 55.00 -1.59
SHEN First Shenango Bancorp of PA(8)..................... 41.94 2,069 86.8 43.88 21.75 42.69 -1.76 76.59 13.35
SOPN First Svgs Bancorp of NC............................ 24.63 3,700 91.1 26.00 19.38 23.00 7.09 26.31 -3.41
FBNW FirstBank Corp of Clarkston WA...................... 19.88 1,984 39.4 20.25 15.50 19.88 0.00 98.80 5.30
FFDB FirstFed Bancorp, Inc. of AL........................ 23.75 1,155 27.4 25.00 14.38 23.75 0.00 65.16 9.80
FSPT FirstSpartan Fin. Corp. of SC....................... 44.00 4,430 194.9 44.00 35.00 43.50 1.15 120.00 9.32
FLAG Flag Financial Corp of GA........................... 19.88 2,037 40.5 21.50 11.75 20.38 -2.45 62.29 -7.53
FLGS Flagstar Bancorp, Inc of MI......................... 23.38 13,670 319.6 23.38 13.00 22.13 5.65 N.A. 18.08
FFIC Flushing Fin. Corp. of NY*.......................... 24.50 7,865 192.7 25.50 17.88 24.13 1.53 28.07 2.60
FBHC Fort Bend Holding Corp. of TX....................... 20.75 1,668 34.6 24.00 11.75 21.75 -4.60 76.60 -4.60
FTSB Fort Thomas Fin. Corp. of KY........................ 15.25 1,474 22.5 15.63 9.25 15.44 -1.23 35.56 -0.85
FKKY Frankfort First Bancorp of KY....................... 16.75 1,619 27.1 24.50 15.75 16.00 4.69 -22.99 -4.99
FTNB Fulton Bancorp, Inc. of MO.......................... 21.88 1,719 37.6 26.50 17.50 22.00 -0.55 19.89 -1.13
GFSB GFS Bancorp of Grinnell IA(8)....................... 17.88 996 17.8 17.88 10.75 17.50 2.17 66.33 4.81
GUPB GFSB Bancorp, Inc of Gallup NM...................... 22.00 801 17.6 22.25 16.25 20.75 6.02 35.38 4.12
GSLA GS Financial Corp. of LA............................ 20.63 3,439 70.9 21.00 13.38 20.63 0.00 106.30 -1.76
GOSB GSB Financial Corp. of NY*.......................... 17.13 2,248 38.5 18.94 14.25 16.50 3.82 71.30 -5.15
GFCO Glenway Financial Corp. of OH....................... 20.00 2,281 45.6 21.25 10.25 20.88 -4.21 77.78 6.67
GTPS Great American Bancorp of IL........................ 21.00 1,672 35.1 21.50 15.50 20.00 5.00 33.33 10.53
PEDE Great Pee Dee Bancorp of SC......................... 15.75 2,202 34.7 16.25 14.75 15.88 -0.82 57.50 -2.36
GSBC Great Southern Bancorp of MO........................ 25.75 8,066 207.7 26.25 16.00 26.00 -0.96 49.28 5.10
GDVS Greater DV SB,MHC of PA (19.9)...................... 31.75 3,273 20.6 32.75 12.25 30.50 4.10 126.79 2.42
GSFC Green Street Fin. Corp. of NC....................... 17.88 4,298 76.8 20.75 17.00 17.44 2.52 3.65 -2.03
GFED Guaranty Fed Bancshares of MO....................... 12.63 6,222 78.6 14.44 6.34 12.19 3.61 103.38 -1.94
HCBB HCB Bancshares of Camden AR......................... 14.69 2,645 38.9 15.25 12.63 14.63 0.41 46.90 1.31
HEMT HF Bancorp of Hemet CA.............................. 17.00 6,293 107.0 18.25 12.25 16.88 0.71 31.99 -2.86
HFFC HF Financial Corp. of SD............................ 29.50 2,977 87.8 29.75 18.75 28.75 2.61 50.28 11.32
HFNC HFNC Financial Corp. of NC.......................... 13.50 17,193 232.1 19.88 13.25 13.88 -2.74 -20.59 -6.90
HMNF HMN Financial, Inc. of MN........................... 30.00 4,144 124.3 32.50 19.00 29.25 2.56 44.58 -7.69
HALL Hallmark Capital Corp. of WI........................ 15.50 2,934 45.5 18.00 8.75 15.88 -2.39 59.96 -8.82
HARB Harbor FL Bncp MHC of FL (46.1(8)................... 75.50 4,979 174.9 75.50 35.00 75.00 0.67 105.44 13.96
HRBF Harbor Federal Bancorp of MD........................ 24.81 1,693 42.0 25.25 15.50 23.25 6.71 44.83 -1.74
HFSA Hardin Bancorp of Hardin MO......................... 18.88 824 15.6 19.13 13.50 19.13 -1.31 25.87 3.45
HARL Harleysville SB of PA............................... 30.25 1,666 50.4 31.13 20.25 31.13 -2.83 40.70 10.00
HFGI Harrington Fin. Group of IN......................... 11.13 3,246 36.1 13.75 10.25 12.00 -7.25 4.70 -14.38
HARS Harris Fin. MHC of PA (24.3)........................ 24.75 33,790 202.2 24.75 6.04 24.00 3.13 266.67 24.50
HFFB Harrodsburg 1st Fin Bcrp of KY...................... 16.56 1,986 32.9 18.00 14.75 16.63 -0.42 5.14 -1.13
HHFC Harvest Home Fin. Corp. of OH....................... 15.06 891 13.4 15.75 10.25 15.06 0.00 25.50 -4.38
HAVN Haven Bancorp of Woodhaven NY....................... 24.63 8,785 216.4 25.00 15.25 24.63 0.00 42.78 9.47
HTHR Hawthorne Fin. Corp. of CA.......................... 19.44 3,091 60.1 24.00 9.25 19.25 0.99 89.66 -3.43
HMLK Hemlock Fed. Fin. Corp. of IL....................... 18.75 2,076 38.9 18.94 12.50 18.88 -0.69 87.50 9.46
HFWA Heritage Financial Corp of WA....................... 15.13 9,749 147.5 15.13 13.00 14.81 2.16 51.30 51.30
HCBC High Country Bancorp of CO.......................... 15.50 1,323 20.5 15.50 14.44 15.25 1.64 55.00 0.00
HBNK Highland Bancorp of CA.............................. 36.50 2,318 84.6 36.50 20.50 35.75 2.10 65.91 11.45
HIFS Hingham Inst. for Sav. of MA*....................... 34.00 1,304 44.3 34.50 18.00 32.75 3.82 83.78 18.26
HBEI Home Bancorp of Elgin IL............................ 17.63 6,856 120.9 19.31 14.13 18.00 -2.06 16.52 -1.40
HBFW Home Bancorp of Fort Wayne IN....................... 36.63 2,385 87.4 37.63 20.13 36.75 -0.33 76.53 24.17
HCFC Home City Fin. Corp. of OH.......................... 18.63 905 16.9 19.25 12.75 18.50 0.70 33.07 0.70
HOMF Home Fed Bancorp of Seymour IN...................... 30.50 5,113 155.9 32.75 16.67 31.00 -1.61 69.44 17.31
HWEN Home Financial Bancorp of IN........................ 9.25 929 8.6 9.75 7.38 8.88 4.17 20.29 0.00
HPBC Home Port Bancorp, Inc. of MA*...................... 26.00 1,842 47.9 27.63 16.50 26.00 0.00 46.48 12.41
</TABLE>
<TABLE>
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C>
FNGB First Northern Cap. Corp of WI........................................ 0.68 0.65 8.34 8.34 75.48
FFPB First Palm Beach Bancorp of FL........................................ 1.86 1.43 22.95 22.44 360.25
FSLA First SB SLA MHC of NJ (47.5)(8)...................................... 1.16 1.22 12.69 11.59 130.90
FWWB First Savings Bancorp of WA........................................... 1.25 1.17 14.80 13.67 108.17
FSFF First SecurityFed Fin of IL........................................... 0.61 0.61 12.80 12.80 47.35
SHEN First Shenango Bancorp of PA(8)....................................... 2.22 2.21 23.13 23.13 181.23
SOPN First Svgs Bancorp of NC.............................................. 1.35 1.35 18.51 18.51 81.30
FBNW FirstBank Corp of Clarkston WA........................................ 0.48 0.24 14.95 14.95 92.39
FFDB FirstFed Bancorp, Inc. of AL.......................................... 1.48 1.48 15.00 13.77 154.80
FSPT FirstSpartan Fin. Corp. of SC......................................... 1.33 1.33 29.52 29.52 111.81
FLAG Flag Financial Corp of GA............................................. 1.01 0.84 10.66 10.66 117.07
FLGS Flagstar Bancorp, Inc of MI........................................... 1.66 0.83 8.89 8.54 148.74
FFIC Flushing Fin. Corp. of NY*............................................ 1.08 1.09 17.35 16.67 138.39
FBHC Fort Bend Holding Corp. of TX......................................... 1.41 1.04 12.29 11.52 181.49
FTSB Fort Thomas Fin. Corp. of KY.......................................... 0.80 0.80 10.72 10.72 67.76
FKKY Frankfort First Bancorp of KY......................................... 0.14 0.59 13.92 13.92 82.03
FTNB Fulton Bancorp, Inc. of MO............................................ 0.75 0.60 15.06 15.06 62.82
GFSB GFS Bancorp of Grinnell IA(8)......................................... 1.18 1.12 11.23 11.23 94.93
GUPB GFSB Bancorp, Inc of Gallup NM........................................ 1.08 1.08 17.90 17.90 143.25
GSLA GS Financial Corp. of LA.............................................. 0.49 0.48 16.30 16.30 38.21
GOSB GSB Financial Corp. of NY*............................................ 0.34 0.31 14.66 14.66 51.55
GFCO Glenway Financial Corp. of OH......................................... 1.05 1.05 12.41 12.28 133.55
GTPS Great American Bancorp of IL.......................................... 0.52 0.52 16.92 16.92 84.91
PEDE Great Pee Dee Bancorp of SC........................................... 0.56 0.56 13.51 13.51 35.68
GSBC Great Southern Bancorp of MO.......................................... 1.66 1.53 8.13 8.07 93.04
GDVS Greater DV SB,MHC of PA (19.9)........................................ 0.62 0.62 8.91 8.91 79.58
GSFC Green Street Fin. Corp. of NC......................................... 0.66 0.66 14.73 14.73 41.81
GFED Guaranty Fed Bancshares of MO......................................... 0.33 0.32 11.18 11.18 37.06
HCBB HCB Bancshares of Camden AR........................................... 0.22 0.22 14.45 13.94 77.48
HEMT HF Bancorp of Hemet CA................................................ 0.06 0.35 13.29 11.18 168.96
HFFC HF Financial Corp. of SD.............................................. 2.05 1.90 18.68 18.68 195.05
HFNC HFNC Financial Corp. of NC............................................ 0.63 0.48 9.66 9.66 52.97
HMNF HMN Financial, Inc. of MN............................................. 1.35 1.07 20.38 18.92 166.80
HALL Hallmark Capital Corp. of WI.......................................... 0.94 0.92 10.74 10.74 140.94
HARB Harbor FL Bncp MHC of FL (46.1(8)..................................... 2.88 2.77 20.24 19.64 226.74
HRBF Harbor Federal Bancorp of MD.......................................... 0.96 0.92 17.23 17.23 137.96
HFSA Hardin Bancorp of Hardin MO........................................... 0.99 0.90 15.89 15.89 140.09
HARL Harleysville SB of PA................................................. 2.06 2.07 14.23 14.23 208.81
HFGI Harrington Fin. Group of IN........................................... 0.30 0.32 7.50 7.50 167.80
HARS Harris Fin. MHC of PA (24.3).......................................... 0.53 0.45 5.29 4.72 65.15
HFFB Harrodsburg 1st Fin Bcrp of KY........................................ 0.74 0.74 14.66 14.66 54.84
HHFC Harvest Home Fin. Corp. of OH......................................... 0.80 0.70 11.61 11.61 105.31
HAVN Haven Bancorp of Woodhaven NY......................................... 1.26 1.27 12.85 12.81 224.80
HTHR Hawthorne Fin. Corp. of CA............................................ 2.52 3.02 13.69 13.69 300.29
HMLK Hemlock Fed. Fin. Corp. of IL......................................... 0.45 0.77 14.66 14.66 85.11
HFWA Heritage Financial Corp of WA......................................... 0.49 0.49 9.34 9.34 31.95
HCBC High Country Bancorp of CO............................................ 0.47 0.47 13.48 13.48 65.86
HBNK Highland Bancorp of CA................................................ 2.64 2.03 17.91 17.91 237.12
HIFS Hingham Inst. for Sav. of MA*......................................... 2.04 2.04 16.39 16.39 170.69
HBEI Home Bancorp of Elgin IL.............................................. 0.41 0.41 13.89 13.89 51.43
HBFW Home Bancorp of Fort Wayne IN......................................... 1.22 1.21 17.84 17.84 146.77
HCFC Home City Fin. Corp. of OH............................................ 0.98 0.99 15.47 15.47 79.40
HOMF Home Fed Bancorp of Seymour IN........................................ 1.84 1.62 12.21 11.87 138.75
HWEN Home Financial Bancorp of IN.......................................... 0.36 0.26 7.95 7.95 46.83
HPBC Home Port Bancorp, Inc. of MA*........................................ 1.79 1.75 11.92 11.92 113.36
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- ---------------------------------------------
52 Week (1) % Change From
Shares Market ------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9)High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ----- ------- ------- ------- ------- ---------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFBC HopFed Bancorp of KY...................... 17.25 4,034 69.6 17.44 16.00 17.13 0.70 72.50 72.50
HZFS Horizon Fin'l. Services of IA............. 16.25 853 13.9 16.75 8.50 16.00 1.56 83.00 35.42
HRZB Horizon Financial Corp. of WA*............ 18.88 7,454 140.7 19.25 11.96 19.25 -1.92 47.16 6.37
IBSF IBS Financial Corp. of NJ................. 21.19 10,944 231.9 21.19 14.25 17.94 18.12 41.27 19.79
ITLA ITLA Capital Corp of CA*.................. 21.25 7,871 167.3 21.25 14.00 20.00 6.25 34.92 10.39
IFSB Independence FSB of DC.................... 17.63 1,281 22.6 19.00 7.50 16.31 8.09 110.38 3.71
INCB Indiana Comm. Bank, SB of IN(8)........... 21.13 922 19.5 21.13 15.00 20.63 2.42 17.39 3.07
INBI Industrial Bancorp of OH.................. 22.00 5,103 112.3 22.13 12.00 20.50 7.32 70.81 23.94
IWBK Interwest Bancorp of WA................... 42.00 8,037 337.6 43.25 27.63 42.50 -1.18 29.23 11.26
IPSW Ipswich SB of Ipswich MA*................. 14.00 2,385 33.4 16.50 6.88 13.50 3.70 75.00 -15.15
JXVL Jacksonville Bancorp of TX................ 20.13 2,444 49.2 23.25 13.25 20.00 0.65 37.59 -13.42
JXSB Jcksnville SB,MHC of IL (45.6)............ 23.25 1,908 13.5 24.75 10.67 24.25 -4.12 111.36 16.25
JSBA Jefferson Svgs Bancorp of MO.............. 27.00 10,013 270.4 27.00 13.88 27.00 0.00 83.05 31.71
JOAC Joachim Bancorp, Inc. of MO(8)............ 16.25 722 11.7 16.63 14.00 16.63 -2.29 11.07 1.56
KSBK KSB Bancorp of Kingfield ME*.............. 18.50 1,239 22.9 22.50 9.00 18.50 0.00 98.29 -17.78
KFBI Klamath First Bancorp of OR............... 23.00 9,994 229.9 24.25 16.50 22.69 1.37 27.78 6.98
LSBI LSB Fin. Corp. of Lafayette IN............ 30.50 916 27.9 30.50 19.05 30.50 0.00 60.10 7.02
LVSB Lakeview Financial of NJ.................. 25.28 3,882 98.1 26.56 13.63 25.50 -0.86 56.73 -0.86
LARK Landmark Bancshares, Inc of KS............ 23.50 1,689 39.7 27.25 18.75 23.00 2.17 27.03 -5.55
LARL Laurel Capital Group of PA................ 21.63 2,175 47.0 23.50 13.42 23.50 -7.96 54.50 -0.18
LSBX Lawrence Savings Bank of MA*.............. 18.88 4,288 81.0 19.31 9.13 19.00 -0.63 104.11 15.26
LFED Leeds FSB, MHC of MD (36.3)............... 22.50 5,182 42.4 23.50 11.83 21.63 4.02 81.74 3.45
LXMO Lexington B&L Fin. Corp. of MO............ 16.63 1,121 18.6 17.88 14.13 16.75 -0.72 7.29 -6.31
LFCO Life Financial Corp of CA(8).............. 19.50 6,546 127.6 21.88 10.75 19.88 -1.91 N.A. 54.39
LFBI Little Falls Bancorp of NJ................ 20.19 2,608 52.7 20.50 12.75 18.50 9.14 46.84 -1.51
LOGN Logansport Fin. Corp. of IN............... 17.50 1,261 22.1 18.00 12.50 17.13 2.16 22.81 -2.78
LISB Long Island Bancorp, Inc of NY............ 64.75 24,029 1,555.9 65.75 33.00 60.06 7.81 85.00 30.47
MAFB MAF Bancorp, Inc. of IL................... 39.00 15,013 585.5 39.25 24.83 38.00 2.63 49.03 10.23
MBLF MBLA Financial Corp. of MO................ 27.50 1,270 34.9 30.63 20.00 27.38 0.44 37.50 -9.84
MECH MECH Financial Inc of CT*................. 29.00 5,293 153.5 29.00 16.75 27.00 7.41 65.15 11.28
MFBC MFB Corp. of Mishawaka IN................. 26.25 1,627 42.7 30.38 18.75 27.50 -4.55 40.00 -13.59
MSBF MSB Financial, Inc of MI.................. 17.00 1,237 21.0 19.50 10.38 17.00 0.00 58.14 -10.53
MARN Marion Capital Holdings of IN............. 28.00 1,782 49.9 28.75 21.25 28.00 0.00 31.76 3.21
MRKF Market Fin. Corp. of OH................... 17.06 1,336 22.8 17.38 12.25 16.75 1.85 70.60 9.15
MFSL Maryland Fed. Bancorp of MD(8)............ 37.88 6,476 245.3 38.00 17.19 36.94 2.54 107.56 8.23
MASB MassBank Corp. of Reading MA*............. 51.00 3,571 182.1 51.25 29.91 51.00 0.00 62.89 7.08
MFLR Mayflower Co-Op. Bank of MA*.............. 27.00 899 24.3 27.00 15.75 27.00 0.00 42.11 0.93
MDBK Medford Bancorp, Inc. of MA*.............. 43.00 4,541 195.3 44.00 24.50 43.38 -0.88 56.36 9.55
MERI Meritrust FSB of Thibodaux LA(8).......... 78.94 774 61.1 80.00 34.00 78.94 0.00 119.28 14.41
MWBX MetroWest Bank of MA*..................... 7.88 14,108 111.2 9.50 4.63 8.00 -1.50 50.10 -12.44
METF Metropolitan Fin. Corp. of OH............. 16.63 7,051 117.3 18.88 5.38 16.88 -1.48 209.11 7.29
MIFC Mid Iowa Financial Corp. of IA............ 12.13 1,710 20.7 12.63 7.31 12.38 -2.02 51.63 5.48
MCBN Mid-Coast Bancorp of ME................... 38.00 237 9.0 40.75 18.50 38.00 0.00 100.00 26.67
MWBI Midwest Bancshares, Inc. of IA............ 16.00 1,021 16.3 19.50 9.33 17.00 -5.88 71.49 -12.33
MWFD Midwest Fed. Fin. Corp of WI(8)........... 30.75 1,628 50.1 30.75 16.75 30.50 0.82 78.26 9.31
MFFC Milton Fed. Fin. Corp. of OH.............. 16.13 2,267 36.6 17.00 13.25 15.88 1.57 17.31 4.88
MBSP Mitchell Bancorp, Inc. of NC.............. 17.00 931 15.8 18.00 15.25 17.25 -1.45 6.25 0.00
MBBC Monterey Bay Bancorp of CA................ 22.00 3,230 71.1 22.00 15.50 20.75 6.02 29.41 12.82
MONT Montgomery Fin. Corp. of IN............... 13.13 1,653 21.7 14.00 11.00 12.75 2.98 31.30 1.94
MSBK Mutual SB, FSB of Bay City MI............. 13.00 4,282 55.7 14.63 6.50 13.38 -2.84 67.74 0.00
MYST Mystic Financial of MA*................... 17.88 2,711 48.5 18.56 14.44 17.63 1.42 78.80 78.80
NHTB NH Thrift Bancshares of NH................ 20.63 2,088 43.1 22.75 11.75 20.00 3.15 70.07 0.63
NSLB NS&L Bancorp, Inc of Neosho MO............ 17.50 686 12.0 19.50 16.00 17.50 0.00 9.38 -7.31
NSSY NSS Bancorp of CT*........................ 42.63 2,427 103.5 42.75 23.00 42.25 0.90 82.34 12.93
NMSB Newmil Bancorp, Inc. of CT*............... 13.88 3,879 53.8 14.50 8.88 13.25 4.75 42.36 6.77
</TABLE>
<TABLE>
<CAPTION>
Current Per Share Financials
---------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- ------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C>
HFBC HopFed Bancorp of KY...................... 0.58 0.58 13.26 13.26 58.70
HZFS Horizon Fin'l. Services of IA............. 0.83 0.66 10.58 10.58 104.07
HRZB Horizon Financial Corp. of WA*............ 1.09 1.08 11.38 11.38 71.47
IBSF IBS Financial Corp. of NJ................. 0.53 0.53 11.80 11.80 66.54
ITLA ITLA Capital Corp of CA*.................. 1.52 1.52 12.28 12.23 114.54
IFSB Independence FSB of DC.................... 1.09 0.45 14.23 12.67 196.38
INCB Indiana Comm. Bank, SB of IN(8)........... 0.53 0.53 12.57 12.57 103.45
INBI Industrial Bancorp of OH.................. 1.00 1.00 11.93 11.93 71.34
IWBK Interwest Bancorp of WA................... 2.55 2.22 16.60 16.32 246.65
IPSW Ipswich SB of Ipswich MA*................. 0.93 0.76 4.96 4.96 95.28
JXVL Jacksonville Bancorp of TX................ 1.38 1.38 14.09 14.09 96.32
JXSB Jcksnville SB,MHC of IL (45.6)............ 0.51 0.41 9.17 9.17 88.07
JSBA Jefferson Svgs Bancorp of MO.............. 0.97 0.94 11.34 8.89 125.61
JOAC Joachim Bancorp, Inc. of MO(8)............ 0.37 0.37 13.71 13.71 47.41
KSBK KSB Bancorp of Kingfield ME*.............. 1.22 1.22 8.89 8.45 120.79
KFBI Klamath First Bancorp of OR............... 0.88 0.88 14.71 13.44 97.58
LSBI LSB Fin. Corp. of Lafayette IN............ 1.71 1.54 19.36 19.36 225.53
LVSB Lakeview Financial of NJ.................. 1.82 1.14 11.75 9.64 121.76
LARK Landmark Bancshares, Inc of KS............ 1.46 1.32 19.49 19.49 138.33
LARL Laurel Capital Group of PA................ 1.34 1.35 10.37 10.37 98.11
LSBX Lawrence Savings Bank of MA*.............. 1.89 1.87 8.77 8.77 83.92
LFED Leeds FSB, MHC of MD (36.3)............... 0.66 0.66 9.35 9.35 56.23
LXMO Lexington B&L Fin. Corp. of MO............ 0.65 0.65 15.12 14.18 82.47
LFCO Life Financial Corp of CA(8).............. 1.94 2.03 8.37 8.37 62.91
LFBI Little Falls Bancorp of NJ................ 0.66 0.60 14.53 13.40 124.40
LOGN Logansport Fin. Corp. of IN............... 0.98 1.01 13.12 13.12 68.29
LISB Long Island Bancorp, Inc of NY............ 2.11 1.74 23.19 22.98 252.72
MAFB MAF Bancorp, Inc. of IL................... 2.53 2.49 17.55 15.46 230.31
MBLF MBLA Financial Corp. of MO................ 1.41 1.43 22.32 22.32 176.03
MECH MECH Financial Inc of CT*................. 2.47 2.44 16.73 16.73 168.59
MFBC MFB Corp. of Mishawaka IN................. 1.25 1.24 20.61 20.61 162.32
MSBF MSB Financial, Inc of MI.................. 0.91 0.84 10.56 10.56 62.61
MARN Marion Capital Holdings of IN............. 1.58 1.58 22.37 21.89 107.66
MRKF Market Fin. Corp. of OH................... 0.43 0.43 15.13 15.13 42.54
MFSL Maryland Fed. Bancorp of MD(8)............ 1.14 1.61 15.39 15.22 181.44
MASB MassBank Corp. of Reading MA*............. 2.85 2.63 29.06 28.65 259.14
MFLR Mayflower Co-Op. Bank of MA*.............. 1.56 1.48 14.31 14.10 146.73
MDBK Medford Bancorp, Inc. of MA*.............. 2.51 2.42 22.35 21.04 250.07
MERI Meritrust FSB of Thibodaux LA(8).......... 3.51 3.51 25.66 25.66 302.07
MWBX MetroWest Bank of MA*..................... 0.54 0.53 3.17 3.17 43.16
METF Metropolitan Fin. Corp. of OH............. 0.82 0.77 5.20 4.78 131.18
MIFC Mid Iowa Financial Corp. of IA............ 0.89 0.98 7.41 7.40 79.15
MCBN Mid-Coast Bancorp of ME................... 1.92 1.80 22.03 22.03 264.27
MWBI Midwest Bancshares, Inc. of IA............ 1.24 1.10 10.46 10.46 144.69
MWFD Midwest Fed. Fin. Corp of WI(8)........... 1.80 1.42 11.70 11.31 130.03
MFFC Milton Fed. Fin. Corp. of OH.............. 0.56 0.54 11.43 11.43 96.53
MBSP Mitchell Bancorp, Inc. of NC.............. 0.56 0.56 15.56 15.56 38.78
MBBC Monterey Bay Bancorp of CA................ 0.55 0.50 14.84 13.84 126.35
MONT Montgomery Fin. Corp. of IN............... 0.44 0.44 11.89 11.89 63.93
MSBK Mutual SB, FSB of Bay City MI.............-2.14 -0.75 7.66 7.66 150.57
MYST Mystic Financial of MA*................... 0.52 0.52 13.00 13.00 66.76
NHTB NH Thrift Bancshares of NH................ 1.33 1.08 12.24 10.59 152.29
NSLB NS&L Bancorp, Inc of Neosho MO............ 0.62 0.61 16.64 16.51 84.29
NSSY NSS Bancorp of CT*........................ 2.76 3.13 22.49 21.83 276.37
NMSB Newmil Bancorp, Inc. of CT*............... 0.71 0.72 8.54 8.54 91.65
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- ---------------------------------------------
Shares Market 52 Week (1) % Change From
------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ----- ------- ------- ------- ------ --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASB North American SB, FSB of MO............... 69.00 2,240 154.6 71.00 38.00 70.00 -1.43 81.58 29.87
NBSI North Bancshares of Chicago IL............. 17.50 1,430 25.0 18.83 12.75 17.50 0.00 34.62 -2.13
FFFD North Central Bancshares of IA............. 22.44 3,266 73.3 22.75 15.00 22.38 0.27 43.57 12.88
NEIB Northeast Indiana Bncrp of IN.............. 21.13 1,763 37.3 22.75 13.25 21.38 -1.17 40.87 -4.52
NWEQ Northwest Equity Corp. of WI............... 21.63 839 18.1 22.25 13.75 21.63 0.00 53.08 4.24
NWSB Northwest SB, MHC of PA (30.7)............. 17.00 46,798 244.0 17.00 7.13 16.00 6.25 120.21 20.31
NTMG Nutmeg FS&LA of CT......................... 10.88 986 10.7 11.25 5.25 11.00 -1.09 96.75 3.62
OHSL OHSL Financial Corp. of OH................. 33.75 1,241 41.9 36.75 22.63 34.00 -0.74 50.00 25.00
OCFC Ocean Fin. Corp. of NJ..................... 36.56 7,853 287.1 38.38 27.63 34.75 5.21 25.51 -1.85
OTFC Oregon Trail Fin. Corp. of OR.............. 18.38 4,333 79.6 18.50 15.63 18.38 0.00 83.80 5.75
OFCP Ottawa Financial Corp. of MI............... 29.25 5,313 155.4 34.00 18.64 29.56 -1.05 56.00 -13.97
PFFB PFF Bancorp of Pomona CA................... 20.44 17,956 367.0 21.50 13.63 19.25 6.18 35.10 2.82
PSFI PS Financial of Chicago IL................. 14.13 2,167 30.6 22.38 12.88 13.88 1.80 3.67 -36.86
PVFC PVF Capital Corp. of OH.................... 24.00 2,659 63.8 24.00 15.23 24.00 0.00 54.14 18.87
PBCI Pamrapo Bancorp, Inc. of NJ................ 27.75 2,843 78.9 28.00 18.50 27.00 2.78 30.59 1.83
PFED Park Bancorp of Chicago IL................. 18.75 2,333 43.7 19.75 14.25 19.00 -1.32 16.24 0.64
PVSA Parkvale Financial Corp of PA.............. 31.25 5,108 159.6 34.25 20.80 30.75 1.63 40.77 -8.76
PBHC Pathfinder BC MHC of NY (46.1)*............ 22.25 2,875 19.6 22.25 7.17 21.00 5.95 203.55 11.25
PEEK Peekskill Fin. Corp. of NY................. 16.88 3,127 52.8 18.25 13.38 16.94 -0.35 15.38 0.78
PFSB PennFed Fin. Services of NJ................ 18.50 9,646 178.5 19.00 11.13 18.00 2.78 50.28 8.00
PWBC PennFirst Bancorp of PA.................... 19.31 5,271 101.8 20.00 12.27 19.13 0.94 49.00 0.31
PWBK Pennwood Bancorp, Inc. of PA............... 18.75 551 10.3 22.00 13.75 20.00 -6.25 33.93 -5.06
PBKB People's Bancshares of MA*................. 26.00 3,289 85.5 26.00 11.63 24.75 5.05 112.24 14.29
PFDC Peoples Bancorp of Auburn IN............... 22.50 3,391 76.3 25.00 14.50 22.50 0.00 46.77 2.27
PBCT Peoples Bank, MHC of CT (40.1)*............ 38.75 61,162 947.6 38.75 19.00 38.00 1.97 66.10 1.97
TSBS Peoples Bcrp, MHC of NJ (35.9)(8)*......... 44.75 9,046 145.3 45.25 18.00 43.75 2.29 148.61 -1.10
PFFC Peoples Fin. Corp. of OH................... 16.63 1,417 23.6 19.00 12.75 16.63 0.00 6.40 9.91
PHBK Peoples Heritage Fin Grp of ME*............ 46.75 27,737 1,296.7 47.06 27.50 45.63 2.45 48.41 1.63
PSFC Peoples Sidney Fin. Corp of OH............. 18.00 1,785 32.1 18.63 12.56 17.75 1.41 80.00 0.67
PERM Permanent Bancorp, Inc. of IN.............. 36.00 2,103 75.7 36.50 20.75 32.00 12.50 69.41 15.64
PMFI Perpetual Midwest Fin. of IA(8)............ 29.38 1,891 55.6 30.50 18.75 28.75 2.19 48.76 0.44
PERT Perpetual of SC, MHC (46.8)(8)............. 65.88 1,509 46.4 66.75 24.13 66.75 -1.30 158.35 8.66
PCBC Perry Co. Fin. Corp. of MO................. 23.25 828 19.3 25.00 18.75 23.25 0.00 24.00 -3.65
PHFC Pittsburgh Home Fin Corp of PA............. 17.88 1,969 35.2 20.81 14.00 18.00 -0.67 18.73 -0.67
PFSL Pocahnts Fed, MHC of AR (47.0)(8).......... 45.88 1,632 35.3 45.88 17.75 44.75 2.53 129.40 3.10
PTRS Potters Financial Corp of OH............... 18.75 973 18.2 22.25 9.50 18.75 0.00 87.50 -6.25
PKPS Poughkeepsie Fin. Corp. of NY(8)........... 11.41 12,610 143.9 11.63 5.44 10.50 8.67 84.33 -1.89
PHSB Ppls Home SB, MHC of PA (45.0)............. 19.75 2,760 24.5 19.75 13.63 19.13 3.24 97.50 4.61
PRBC Prestige Bancorp of PA..................... 19.25 915 17.6 20.00 15.50 19.50 -1.28 20.31 -3.75
PFNC Progress Financial Corp. of PA............. 18.38 4,064 74.7 18.50 7.68 17.88 2.80 120.65 11.39
PSBK Progressive Bank, Inc. of NY(8)*........... 43.50 3,832 166.7 44.00 23.38 44.00 -1.14 72.28 13.73
PROV Provident Fin. Holdings of CA.............. 24.25 4,693 113.8 24.25 14.13 23.38 3.72 50.34 10.83
PULB Pulaski SB, MHC of MO (29.8)(8)............ 50.25 2,097 31.4 51.00 17.38 50.50 -0.50 179.17 60.13
PLSK Pulaski SB, MHC of NJ (46.0)............... 20.00 2,108 19.0 24.50 11.50 18.25 9.59 100.00 3.90
PULS Pulse Bancorp of S. River NJ............... 26.63 3,088 82.2 29.75 17.88 26.63 0.00 46.88 1.91
QCFB QCF Bancorp of Virginia MN................. 28.25 1,382 39.0 29.75 19.00 28.25 0.00 48.68 -5.04
QCBC Quaker City Bancorp of CA.................. 22.63 4,673 105.7 24.56 14.40 21.00 7.76 48.88 6.49
QCSB Queens County Bancorp of NY*............... 42.13 14,913 628.3 42.13 23.33 41.00 2.76 74.74 4.02
RARB Raritan Bancorp of Raritan NJ*............. 26.50 2,372 62.9 29.25 16.33 28.75 -7.83 57.46 -5.36
REDF RedFed Bancorp of Redlands CA(8)........... 19.88 7,233 143.8 21.13 12.38 19.75 0.66 40.69 0.00
RELY Reliance Bancorp, Inc. of NY............... 37.25 9,634 358.9 37.75 22.00 37.00 0.68 58.92 1.69
RELI Reliance Bancshares Inc of WI.............. 8.88 2,562 22.8 10.13 7.13 9.00 -1.33 22.48 -6.53
RCBK Richmond County Fin Corp of NY*............ 17.94 24,466 438.9 18.00 15.69 17.00 5.53 79.40 79.40
RIVR River Valley Bancorp of IN................. 19.50 1,190 23.2 19.75 13.63 19.00 2.63 34.48 4.00
RVSB Riverview Bancorp of WA.................... 17.00 6,133 104.3 18.00 6.72 15.88 7.05 152.98 -4.23
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C>
NASB North American SB, FSB of MO............... 5.40 4.39 27.83 27.01 327.72
NBSI North Bancshares of Chicago IL............. 0.44 0.42 11.60 11.60 86.00
FFFD North Central Bancshares of IA............. 1.16 1.16 15.10 15.10 65.87
NEIB Northeast Indiana Bncrp of IN.............. 1.18 1.18 15.51 15.51 107.95
NWEQ Northwest Equity Corp. of WI............... 1.22 1.17 13.77 13.77 118.66
NWSB Northwest SB, MHC of PA (30.7)............. 0.41 0.42 4.44 3.94 48.05
NTMG Nutmeg FS&LA of CT......................... 0.67 0.43 5.88 5.88 106.64
OHSL OHSL Financial Corp. of OH................. 1.62 1.55 20.98 20.98 192.51
OCFC Ocean Fin. Corp. of NJ..................... 1.78 1.77 27.45 27.45 192.40
OTFC Oregon Trail Fin. Corp. of OR.............. 0.63 0.64 10.64 10.64 85.17
OFCP Ottawa Financial Corp. of MI............... 1.42 1.35 14.37 11.69 166.73
PFFB PFF Bancorp of Pomona CA................... 0.79 0.75 14.95 14.80 154.04
PSFI PS Financial of Chicago IL................. 0.72 0.73 14.76 14.76 39.55
PVFC PVF Capital Corp. of OH.................... 1.90 1.79 10.85 10.85 149.01
PBCI Pamrapo Bancorp, Inc. of NJ................ 1.78 1.70 17.07 16.96 132.51
PFED Park Bancorp of Chicago IL................. 0.66 0.71 16.55 16.55 75.85
PVSA Parkvale Financial Corp of PA.............. 2.07 2.07 15.79 15.70 199.52
PBHC Pathfinder BC MHC of NY (46.1)*............ 0.64 0.58 8.20 6.95 68.44
PEEK Peekskill Fin. Corp. of NY................. 0.64 0.64 14.87 14.87 58.91
PFSB PennFed Fin. Services of NJ................ 1.11 1.10 10.64 9.12 152.97
PWBC PennFirst Bancorp of PA.................... 1.03 1.03 13.00 11.58 172.79
PWBK Pennwood Bancorp, Inc. of PA............... 0.83 0.96 15.41 15.41 85.68
PBKB People's Bancshares of MA*................. 1.44 0.74 8.94 8.58 218.14
PFDC Peoples Bancorp of Auburn IN............... 1.26 1.26 13.25 13.25 86.79
PBCT Peoples Bank, MHC of CT (40.1)*............ 1.51 0.87 11.61 11.55 133.81
TSBS Peoples Bcrp, MHC of NJ (35.9)(8)*......... 0.82 0.61 12.16 10.99 70.80
PFFC Peoples Fin. Corp. of OH................... 0.56 0.55 10.97 10.97 58.20
PHBK Peoples Heritage Fin Grp of ME*............ 2.65 2.62 17.13 12.87 244.99
PSFC Peoples Sidney Fin. Corp of OH............. 0.64 0.64 14.72 14.72 59.52
PERM Permanent Bancorp, Inc. of IN.............. 1.25 1.24 19.96 19.72 199.63
PMFI Perpetual Midwest Fin. of IA(8)............ 1.02 0.91 18.49 18.49 207.35
PERT Perpetual of SC, MHC (46.8)(8)............. 1.27 1.40 20.28 20.28 170.31
PCBC Perry Co. Fin. Corp. of MO................. 1.07 1.07 19.75 19.75 102.69
PHFC Pittsburgh Home Fin Corp of PA............. 1.07 0.92 12.52 12.37 152.19
PFSL Pocahnts Fed, MHC of AR (47.0)(8).......... 1.45 1.43 15.17 15.17 238.61
PTRS Potters Financial Corp of OH............... 1.23 1.21 11.31 11.31 126.04
PKPS Poughkeepsie Fin. Corp. of NY(8)........... 0.19 0.24 5.76 5.76 69.43
PHSB Ppls Home SB, MHC of PA (45.0)............. 0.59 0.56 10.37 10.37 78.89
PRBC Prestige Bancorp of PA..................... 0.86 0.84 17.08 17.08 156.57
PFNC Progress Financial Corp. of PA............. 0.95 0.72 6.18 5.19 121.41
PSBK Progressive Bank, Inc. of NY(8)*........... 2.25 2.20 20.48 18.57 230.56
PROV Provident Fin. Holdings of CA.............. 1.04 0.55 17.85 17.85 154.21
PULB Pulaski SB, MHC of MO (29.8)(8)............ 1.03 0.90 11.38 11.38 85.56
PLSK Pulaski SB, MHC of NJ (46.0)............... 0.53 0.53 10.29 10.29 86.21
PULS Pulse Bancorp of S. River NJ............... 1.85 1.87 14.31 14.31 174.65
QCFB QCF Bancorp of Virginia MN................. 1.81 1.81 18.83 18.83 114.47
QCBC Quaker City Bancorp of CA.................. 1.27 1.22 15.73 15.73 182.36
QCSB Queens County Bancorp of NY*............... 1.56 1.54 11.43 11.43 107.51
RARB Raritan Bancorp of Raritan NJ*............. 1.65 1.62 13.02 12.83 172.14
REDF RedFed Bancorp of Redlands CA(8)........... 1.44 1.48 11.65 11.61 139.60
RELY Reliance Bancorp, Inc. of NY............... 1.88 1.97 19.92 13.56 232.83
RELI Reliance Bancshares Inc of WI.............. 0.19 0.20 8.71 8.71 17.39
RCBK Richmond County Fin Corp of NY*............ 0.56 0.56 11.79 11.79 45.97
RIVR River Valley Bancorp of IN................. 0.91 0.76 14.80 14.59 116.35
RVSB Riverview Bancorp of WA.................... 0.54 0.53 9.75 9.41 42.89
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
------------------------- ---------------------------------------------
% Change From
Shares Market 52 Week (1) -----------------------
Price/ Outst- Capital- ------------- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1997(2)
--------------------- ------- ------- ------- ----- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSLN Roslyn Bancorp, Inc. of NY*...... 23.59 43,642 1,029.5 24.50 15.88 21.31 10.70 38.76 1.46
SCCB S. Carolina Comm. Bnshrs of SC... 22.13 583 12.9 25.25 17.50 21.50 2.93 10.98 -1.64
SBFL SB Fngr Lakes MHC of NY (33.1)... 24.75 3,570 14.6 24.75 7.38 19.88 24.50 219.35 54.69
SFED SFS Bancorp of Schenectady NY.... 23.75 1,208 28.7 27.25 16.00 22.50 5.56 31.94 -11.64
SGVB SGV Bancorp of W. Covina CA...... 17.50 2,345 41.0 19.38 11.38 17.56 -0.34 30.79 -1.41
SHSB SHS Bancorp, Inc. of PA.......... 17.12 820 14.0 18.00 14.75 17.00 0.71 71.20 2.21
SISB SIS Bancorp, Inc. of MA*......... 39.50 6,948 274.4 40.25 23.38 38.25 3.27 53.40 -1.72
SWCB Sandwich Bancorp of MA(8)*....... 57.75 1,942 112.2 58.50 27.25 58.25 -0.86 89.34 31.25
SFSL Security First Corp. of OH....... 22.50 7,571 170.3 22.50 12.00 21.75 3.45 83.67 7.76
SKAN Skaneateles Bancorp Inc of NY*... 19.38 1,437 27.8 22.25 12.25 19.75 -1.87 49.08 -12.43
SOBI Sobieski Bancorp of S. Bend IN... 21.25 764 16.2 24.25 14.50 20.25 4.94 46.55 4.27
SOSA Somerset Savings Bank of MA(8)*.. 4.94 16,659 82.3 5.94 2.25 4.84 2.07 81.62 -1.20
SSFC South Street Fin. Corp. of NC*... 12.38 4,676 57.9 20.00 11.75 12.50 -0.96 -24.97 -34.84
SCBS Southern Commun. Bncshrs of AL... 18.50 1,137 21.0 19.00 13.50 18.00 2.78 37.04 1.37
SMBC Southern Missouri Bncrp of MO.... 21.75 1,612 35.1 23.25 15.50 21.75 0.00 31.82 6.10
SWBI Southwest Bancshares of IL(8).... 32.50 2,715 88.2 32.50 18.75 31.81 2.17 68.83 9.24
SVRN Sovereign Bancorp, Inc. of PA.... 21.88 93,444 2,044.6 21.88 11.38 21.06 3.89 70.80 5.45
STFR St. Francis Cap. Corp. of WI .... 46.50 5,251 244.2 50.75 29.00 44.63 4.19 50.00 -7.92
SPBC St. Paul Bancorp, Inc. of IL..... 26.19 34,205 895.8 28.50 17.58 26.44 -0.95 38.42 -0.23
SFFC StateFed Financial Corp. of IA... 14.50 1,557 22.6 14.75 9.00 14.50 0.00 56.76 -1.69
SFIN Statewide Fin. Corp. of NJ....... 22.75 4,591 104.4 24.13 14.75 22.88 -0.57 41.04 -5.21
STSA Sterling Financial Corp. of WA... 25.50 7,570 193.0 25.50 15.25 25.00 2.00 51.70 17.24
SFSB SuburbFed Fin. Corp. of IL(8).... 47.75 1,266 60.5 50.00 22.25 47.00 1.60 112.22 -4.50
ROSE T R Financial Corp. of NY*....... 35.50 17,598 624.7 35.50 16.69 33.00 7.58 97.88 6.77
THRD TF Financial Corp. of PA......... 27.25 3,187 86.8 30.00 16.63 26.13 4.29 45.33 -9.17
TPNZ Tappan Zee Fin., Inc. of NY...... 20.25 1,478 29.9 22.63 14.00 20.25 0.00 42.11 8.00
TSBK Timberland Bancorp of WA......... 18.13 6,613 119.9 18.50 14.50 17.94 1.06 81.30 81.30
TRIC Tri-County Bancorp of WY......... 15.00 1,167 17.5 15.00 9.25 14.00 7.14 62.16 0.00
TWIN Twin City Bancorp, Inc. of TN.... 14.75 1,269 18.7 15.50 12.00 14.50 1.72 16.42 -4.84
USAB USABancshares, Inc of PA*........ 12.25 732 9.0 13.38 6.56 12.00 2.08 59.30 22.50
UCBC Union Community Bancorp of IN.... 15.50 3,042 47.2 15.75 13.94 15.00 3.33 55.00 5.95
UFRM United FSB of Rocky Mount NC(8).. 19.00 3,169 60.2 21.00 9.00 18.38 3.37 108.11 -3.21
UBMT United Fin. Corp. of MT.......... 28.25 1,223 34.5 28.25 19.00 27.25 3.67 44.87 10.78
UTBI United Tenn. Bancshares of TN.... 14.56 1,455 21.2 14.75 13.63 14.19 2.61 45.60 45.60
VABF Va. Beach Fed. Fin. Corp of VA... 19.63 4,981 97.8 20.88 9.75 20.38 -3.68 84.67 6.80
WHGB WHG Bancshares of MD............. 18.00 1,389 25.0 19.00 13.75 18.50 -2.70 23.03 -4.00
WSFS WSFS Financial Corp. of DE*...... 21.88 12,460 272.6 21.88 10.63 20.25 8.05 84.18 9.40
WVFC WVS Financial Corp. of PA........ 38.75 1,753 67.9 38.75 23.50 37.00 4.73 55.00 9.93
WRNB Warren Bancorp of Peabody MA*.... 24.00 3,806 91.3 24.50 15.00 23.81 0.80 52.38 4.35
WSBI Warwick Community Bncrp of NY*... 17.63 6,414 113.1 17.63 15.38 17.25 2.20 76.30 1.44
WFSL Washington Federal, Inc. of WA... 29.00 52,286 1,516.3 30.29 20.46 27.50 5.45 28.89 1.47
WAMU Washington Mutual, Inc. of WA*... 73.94 257,560 19,044.0 73.94 45.38 70.38 5.06 46.42 15.88
WYNE Wayne Bancorp, Inc. of NJ........ 28.75 2,014 57.9 28.75 16.00 24.00 19.79 72.88 7.48
WAYN Wayne Svgs Bks MHC of OH (47.8... 30.00 2,257 32.3 33.00 17.00 30.00 0.00 65.11 3.45
WCFB Wbstr Cty FSB MHC of IA (45.2)... 20.88 2,109 19.8 22.00 13.75 20.63 1.21 42.72 4.40
WBST Webster Financial Corp. of CT.... 66.50 13,653 907.9 66.88 35.13 63.50 4.72 75.88 0.00
WEFC Wells Fin. Corp. of Wells MN..... 18.75 1,959 36.7 19.00 14.00 18.50 1.35 31.58 4.87
WCBI WestCo Bancorp, Inc. of IL....... 29.38 2,464 72.4 29.38 22.00 29.00 1.31 33.55 7.82
WSTR WesterFed Fin. Corp. of MT....... 25.88 5,577 144.3 27.00 17.63 26.00 -0.46 25.45 1.49
WOFC Western Ohio Fin. Corp. of OH.... 26.00 2,356 61.3 29.25 21.00 25.75 0.97 20.93 -3.27
WEHO Westwood Hmstd Fin Corp of OH.... 14.63 2,843 41.6 18.13 12.50 13.63 7.34 9.34 -13.94
FFWD Wood Bancorp of OH............... 20.00 2,651 53.0 27.00 8.47 20.50 -2.44 130.68 6.38
YFCB Yonkers Fin. Corp. of NY......... 20.00 3,021 60.4 22.00 14.38 19.63 1.88 37.93 3.90
YFED York Financial Corp. of PA....... 25.50 8,852 225.7 27.25 14.20 24.88 2.49 78.32 -0.97
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C>
RSLN Roslyn Bancorp, Inc. of NY*...... 0.77 0.94 14.40 14.33 82.51
SCCB S. Carolina Comm. Bnshrs of SC... 0.79 0.79 16.00 16.00 77.34
SBFL SB Fngr Lakes MHC of NY (33.1)... 0.24 0.21 6.07 6.07 69.39
SFED SFS Bancorp of Schenectady NY.... 0.88 0.85 17.74 17.74 144.39
SGVB SGV Bancorp of W. Covina CA...... 0.57 0.66 13.13 12.94 173.91
SHSB SHS Bancorp, Inc. of PA.......... 0.81 0.81 14.65 14.65 108.01
SISB SIS Bancorp, Inc. of MA*......... 1.37 1.87 18.06 18.06 249.51
SWCB Sandwich Bancorp of MA(8)*....... 2.50 2.44 21.63 20.88 267.09
SFSL Security First Corp. of OH....... 1.19 1.19 8.38 8.26 89.54
SKAN Skaneateles Bancorp Inc of NY*... 1.16 1.12 12.30 11.97 178.22
SOBI Sobieski Bancorp of S. Bend IN... 0.65 0.65 16.49 16.49 114.60
SOSA Somerset Savings Bank of MA(8)*.. 0.36 0.35 2.15 2.15 32.40
SSFC South Street Fin. Corp. of NC*... 0.43 0.44 7.28 7.28 48.86
SCBS Southern Commun. Bncshrs of AL... 0.70 0.70 12.73 12.73 62.34
SMBC Southern Missouri Bncrp of MO.... 0.85 0.81 16.47 16.47 99.21
SWBI Southwest Bancshares of IL(8).... 1.51 1.52 16.22 16.22 135.65
SVRN Sovereign Bancorp, Inc. of PA.... 0.61 0.83 7.30 6.06 153.42
STFR St. Francis Cap. Corp. of WI .... 2.35 2.26 25.17 22.44 304.26
SPBC St. Paul Bancorp, Inc. of IL..... 1.43 1.44 12.22 12.18 133.24
SFFC StateFed Financial Corp. of IA... 0.70 0.70 10.05 10.05 56.91
SFIN Statewide Fin. Corp. of NJ....... 1.19 1.19 14.34 14.31 153.15
STSA Sterling Financial Corp. of WA... 1.15 1.04 13.59 12.56 247.85
SFSB SuburbFed Fin. Corp. of IL(8).... 2.20 1.78 23.31 23.24 346.34
ROSE T R Financial Corp. of NY*....... 1.97 1.76 13.69 13.69 218.38
THRD TF Financial Corp. of PA......... 1.53 1.30 15.72 13.12 187.34
TPNZ Tappan Zee Fin., Inc. of NY...... 0.70 0.69 14.46 14.46 84.29
TSBK Timberland Bancorp of WA......... 0.75 0.75 12.38 12.38 40.65
TRIC Tri-County Bancorp of WY......... 0.77 0.79 11.85 11.85 77.12
TWIN Twin City Bancorp, Inc. of TN.... 0.85 0.70 11.04 11.04 85.65
USAB USABancshares, Inc of PA*........ 0.32 0.28 7.40 7.29 87.80
UCBC Union Community Bancorp of IN.... 0.58 0.58 13.40 13.40 36.73
UFRM United FSB of Rocky Mount NC(8).. 0.57 0.37 6.94 6.94 95.98
UBMT United Fin. Corp. of MT.......... 1.22 1.21 20.24 20.24 84.29
UTBI United Tenn. Bancshares of TN.... 0.66 0.66 12.95 12.95 52.89
VABF Va. Beach Fed. Fin. Corp of VA... 0.82 0.66 8.86 8.86 123.71
WHGB WHG Bancshares of MD............. 0.54 0.55 14.34 14.34 72.95
WSFS WSFS Financial Corp. of DE*...... 1.32 1.30 6.96 6.92 121.61
WVFC WVS Financial Corp. of PA........ 2.13 2.15 17.76 17.76 166.58
WRNB Warren Bancorp of Peabody MA*.... 1.91 1.70 10.52 10.52 97.48
WSBI Warwick Community Bncrp of NY*... 0.55 0.55 12.60 12.60 53.02
WFSL Washington Federal, Inc. of WA... 2.07 2.04 14.09 13.00 109.27
WAMU Washington Mutual, Inc. of WA*... 1.28 2.38 20.15 18.77 376.54
WYNE Wayne Bancorp, Inc. of NJ........ 0.97 0.97 16.85 16.85 134.08
WAYN Wayne Svgs Bks MHC of OH (47.8... 0.84 0.78 10.72 10.72 113.04
WCFB Wbstr Cty FSB MHC of IA (45.2)... 0.65 0.65 10.60 10.60 45.10
WBST Webster Financial Corp. of CT.... 2.31 3.52 27.99 24.41 514.14
WEFC Wells Fin. Corp. of Wells MN..... 1.13 1.10 15.13 15.13 102.83
WCBI WestCo Bancorp, Inc. of IL....... 1.91 1.78 19.72 19.72 128.22
WSTR WesterFed Fin. Corp. of MT....... 1.30 1.26 19.31 15.69 185.60
WOFC Western Ohio Fin. Corp. of OH.... 0.61 0.71 23.39 21.83 168.69
WEHO Westwood Hmstd Fin Corp of OH.... 0.31 0.49 10.60 10.60 47.22
FFWD Wood Bancorp of OH............... 0.89 0.80 8.04 8.04 62.82
YFCB Yonkers Fin. Corp. of NY......... 1.02 1.01 14.87 14.87 109.83
YFED York Financial Corp. of PA....... 1.26 1.05 11.84 11.84 133.56
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang.
Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. SAIF-Insured Thrifts
- -------------------------------------
(no MHCs)
- ---------
SAIF-Insured Thrifts(294).............. 13.69 13.45 0.95 8.16 4.50 0.90 7.62 0.75 128.85 0.78
NYSE Traded Companies(9)............... 8.16 7.94 1.18 14.92 5.82 0.63 9.40 1.78 91.95 1.34
AMEX Traded Companies(20).............. 14.04 13.94 0.90 6.47 4.29 0.85 5.84 0.63 153.15 0.73
NASDAQ Listed OTC Companies(265)....... 13.80 13.55 0.95 8.13 4.48 0.91 7.72 0.74 128.10 0.77
California Companies(20)............... 7.84 7.59 0.62 8.57 5.02 0.53 7.84 1.20 86.14 1.26
Florida Companies(5)................... 8.54 8.12 1.14 13.38 4.89 0.59 7.14 1.68 83.02 0.78
Mid-Atlantic Companies(56)............. 10.66 10.29 0.86 8.77 4.85 0.82 8.34 0.80 100.90 0.91
Mid-West Companies(138)................ 14.63 14.43 0.97 7.67 4.27 0.93 7.28 0.61 138.64 0.66
New England Companies(9)............... 7.67 7.37 0.62 8.87 4.72 0.65 9.11 0.69 152.00 1.01
North-West Companies(11)............... 16.87 16.51 1.17 8.71 4.35 1.11 8.12 0.61 284.86 0.77
South-East Companies(43)............... 17.45 17.28 1.08 7.66 4.23 1.03 7.14 0.99 107.74 0.83
South-West Companies(6)................ 10.58 10.42 0.94 11.09 6.78 0.88 10.30 0.66 83.30 0.71
Western Companies (Excl CA)(6)......... 17.89 17.52 1.10 6.66 4.33 1.09 6.59 0.32 153.87 0.70
Thrift Strategy(245)................... 14.84 14.62 0.98 7.66 4.57 0.94 7.28 0.69 131.05 0.72
Mortgage Banker Strategy(30)........... 7.64 7.19 0.77 10.43 4.39 0.70 9.65 1.02 119.15 1.01
Real Estate Strategy(8)................ 7.56 7.33 0.95 12.53 5.93 0.87 11.57 1.05 105.92 1.28
Diversified Strategy(7)................ 8.72 8.53 1.29 15.30 5.10 0.78 10.49 1.59 119.07 1.13
Retail Banking Strategy(4)............. 7.04 6.76 -0.23 -0.09 -4.34 -0.26 -0.99 0.82 142.67 1.25
Companies Issuing Dividends(248)....... 13.62 13.36 0.98 8.47 4.74 0.93 7.85 0.71 127.12 0.74
Companies Without Dividends(46)........ 14.07 13.93 0.76 6.54 3.23 0.73 6.41 0.98 137.80 0.99
Equity/Assets LESS THAN 6%(24)......... 5.04 4.72 0.58 11.70 4.35 0.56 11.26 0.84 110.46 0.94
Equity/Assets 6-12%(134)............... 8.88 8.54 0.84 9.85 4.91 0.77 9.05 0.82 123.09 0.88
Equity/Assets GREATER THAN 12%(136).... 19.35 19.20 1.11 6.10 4.17 1.06 5.77 0.68 136.87 0.67
Converted Last 3 Mths (no MHC)(7)...... 30.18 30.18 1.39 5.00 3.60 1.39 4.98 0.88 209.71 0.84
Actively Traded Companies(36).......... 9.12 8.86 0.97 11.11 4.61 1.00 11.85 0.70 151.66 0.94
Market Value Below $20 Million(41)..... 15.20 15.12 0.93 6.59 4.85 0.86 6.01 0.82 106.00 0.67
Holding Company Structure(266)......... 13.92 13.68 0.95 7.97 4.49 0.90 7.47 0.75 129.15 0.78
Assets Over $1 Billion(57)............. 7.91 7.30 0.87 11.63 4.87 0.77 10.43 0.89 112.31 0.96
Assets $500 Million-$1 Billion(44)..... 9.87 9.62 0.85 8.98 4.05 0.80 8.75 0.66 162.06 0.90
Assets $250-$500 Million(66)........... 12.42 12.13 0.94 8.50 4.78 0.89 7.87 0.73 145.61 0.77
Assets less than $250 Million(127)..... 17.87 17.80 1.02 6.36 4.37 0.98 6.02 0.74 115.75 0.68
Goodwill Companies(120)................ 9.81 9.19 0.90 10.17 4.88 0.81 9.19 0.86 116.37 0.85
Non-Goodwill Companies(174)............ 16.18 16.18 0.98 6.87 4.26 0.95 6.62 0.68 137.00 0.74
Acquirors of FSLIC Cases(9)............ 8.68 8.26 1.00 12.16 6.06 0.91 11.00 0.85 66.56 0.59
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- ----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. SAIF-Insured Thrifts(no MHCs)
- ----------------------------------------------
SAIF-Insured Thrifts(294) 20.22 163.67 20.50 168.36 21.37 0.36 1.53 30.33
NYSE Traded Companies(9) 17.56 198.13 20.74 204.44 17.91 0.24 0.70 11.01
AMEX Traded Companies(20) 19.58 141.65 19.31 143.16 20.59 0.34 1.81 36.69
NASDAQ Listed OTC Companies(265) 20.35 164.69 20.59 169.61 21.50 0.37 1.53 30.40
California Companies(20) 18.95 160.51 12.13 167.79 20.07 0.13 0.46 10.87
Florida Companies(5) 18.94 175.98 20.98 194.36 24.53 0.24 0.91 17.18
Mid-Atlantic Companies(56) 19.80 171.38 17.21 175.17 21.17 0.38 1.46 30.64
Mid-West Companies(138) 20.23 160.48 21.29 164.43 21.24 0.35 1.61 30.63
New England Companies(9) 19.51 173.07 12.84 182.62 20.24 0.44 1.47 27.37
North-West Companies(11) 22.52 171.49 26.50 177.57 23.25 0.28 1.07 25.25
South-East Companies(43) 21.59 166.78 25.32 171.18 22.81 0.49 1.92 41.64
South-West Companies(6) 14.39 141.77 14.16 148.77 15.50 0.33 1.43 24.97
Western Companies (Excl CA)(6) 21.93 143.05 24.71 148.98 22.15 0.47 2.03 37.25
Thrift Strategy(245) 20.66 155.32 21.29 159.34 21.47 0.37 1.63 32.41
Mortgage Banker Strategy(30) 18.22 209.64 15.68 221.31 21.82 0.33 1.07 21.01
Real Estate Strategy(8) 17.42 196.89 14.88 202.29 18.48 0.16 0.66 11.62
Diversified Strategy(7) 18.85 243.78 24.48 249.11 21.11 0.57 1.43 29.33
Retail Banking Strategy(4) 16.92 163.57 10.72 169.46 19.68 0.14 0.69 17.20
Companies Issuing Dividends(248) 20.15 166.21 20.60 171.21 21.43 0.43 1.82 36.19
Companies Without Dividends(46) 20.73 149.81 19.98 152.95 21.01 0.00 0.00 0.00
Equity/Assets LESS THAN 6%(24) 17.99 221.07 11.25 227.00 20.93 0.19 0.69 14.98
Equity/Assets 6-12%(134) 18.76 182.76 15.90 191.83 20.27 0.39 1.46 27.12
Equity/Assets GREATER THAN 12%(136) 22.10 137.31 26.06 138.81 22.62 0.37 1.72 36.12
Converted Last 3 Mths (no MHC)(7) 26.16 128.03 38.47 128.03 26.16 0.09 0.62 8.62
Actively Traded Companies(36) 18.87 220.40 18.98 226.09 20.00 0.48 1.46 28.59
Market Value Below $20 Million(41) 20.62 130.66 19.00 131.05 21.63 0.32 1.79 33.67
Holding Company Structure(266) 20.53 162.26 20.69 166.68 21.55 0.37 1.57 31.01
Assets Over $1 Billion(57) 19.59 209.65 16.78 226.77 21.41 0.41 1.14 22.97
Assets $500 Million-$1 Billion(44) 18.73 188.36 17.69 194.39 20.08 0.37 1.42 29.19
Assets $250-$500 Million(66) 19.39 164.86 19.59 167.73 20.69 0.36 1.42 26.41
Assets less than $250 Million(127) 21.46 137.03 23.36 137.87 22.16 0.34 1.77 35.97
Goodwill Companies(120) 19.15 186.36 17.31 199.03 20.91 0.40 1.42 26.16
Non-Goodwill Companies(174) 20.94 149.24 22.55 149.24 21.70 0.34 1.60 33.05
Acquirors of FSLIC Cases(9) 16.68 189.31 16.21 199.68 17.63 0.47 1.61 26.60
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1994 or 1995.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common
equity and assets balances; ROI
(return on investment) is current EPS divided by current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded companies,
and RP Financial, Inc. calculations. The information provided in this
report has been obtained from sources we believe are reliable, but we
cannot guarantee the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. BIF-Insured Thrifts
- ------------------------------------
(no MHCs)
- ---------
BIF-Insured Thrifts(59).................... 11.65 11.33 1.07 10.99 5.11 1.05 10.71 0.72 169.83 1.35
NYSE Traded Companies(4)................... 16.20 14.65 1.09 8.91 3.80 1.23 10.11 1.60 48.48 0.98
AMEX Traded Companies(7)................... 12.46 12.11 1.02 10.29 5.22 0.90 8.98 1.41 67.25 1.23
NASDAQ Listed OTC Companies(48)............ 11.16 10.95 1.07 11.26 5.22 1.05 10.96 0.59 189.19 1.40
California Companies(1).................... 10.72 10.68 1.46 13.06 7.15 1.46 13.06 0.00 0.00 1.50
Mid-Atlantic Companies(21)................. 14.35 13.88 0.90 7.92 3.72 0.93 8.03 0.79 131.71 1.18
New England Companies(31).................. 9.50 9.23 1.17 13.38 6.08 1.10 12.49 0.74 175.37 1.58
North-West Companies(3).................... 9.36 9.23 1.03 11.63 4.44 1.16 14.24 0.49 401.95 1.05
South-East Companies(3).................... 17.27 17.10 1.14 6.83 4.90 1.13 6.78 0.31 184.96 0.51
Thrift Strategy(44)........................ 12.74 12.45 1.08 10.30 5.06 1.04 9.77 0.74 154.93 1.28
Mortgage Banker Strategy(7)................ 8.76 8.40 0.95 12.06 5.22 0.96 11.92 0.44 302.59 1.26
Real Estate Strategy(3).................... 10.76 10.73 1.73 16.25 7.56 1.62 15.19 0.83 132.18 1.59
Diversified Strategy(5).................... 6.58 5.97 0.87 13.30 4.43 0.98 15.25 0.82 151.87 1.94
Companies Issuing Dividends(47)............ 10.48 10.10 1.06 11.23 5.17 1.02 10.82 0.75 169.43 1.31
Companies Without Dividends(12)............ 16.23 16.15 1.11 10.08 4.89 1.15 10.31 0.60 171.52 1.51
Equity/Assets LESS THAN 6%(4).............. 5.09 4.95 0.90 16.51 4.99 0.85 15.67 0.93 94.22 1.54
Equity/Assets 6-12%(40).................... 8.68 8.31 1.08 12.57 5.68 1.03 12.09 0.82 173.21 1.49
Equity/Assets GREATER THAN 12%(15)......... 20.33 20.10 1.10 5.85 3.83 1.13 6.18 0.37 187.48 0.97
Converted Last 3 Mths (no MHC)(4).......... 23.69 23.51 0.93 4.56 2.67 1.14 6.07 0.57 151.21 1.07
Actively Traded Companies(17).............. 9.76 9.35 1.27 13.85 6.00 1.22 13.43 0.59 167.70 1.28
Market Value Below $20 Million(2).......... 9.27 9.21 0.67 7.36 4.69 0.56 6.13 0.56 198.01 1.61
Holding Company Structure(47).............. 12.66 12.41 1.08 10.50 5.02 1.06 10.24 0.63 171.23 1.35
Assets Over $1 Billion(18)................. 11.75 11.04 1.03 10.45 4.33 1.09 11.22 0.78 156.73 1.38
Assets $500 Million-$1 Billion(15)......... 9.35 9.19 1.14 13.11 5.97 1.07 12.08 0.78 169.01 1.53
Assets $250-$500 Million(11)............... 11.63 11.45 1.19 11.93 5.75 1.14 11.44 0.74 204.18 1.56
Assets less than $250 Million(15).......... 13.24 13.15 0.98 9.36 4.90 0.91 8.61 0.59 155.33 1.02
Goodwill Companies(32)..................... 10.07 9.46 1.00 11.40 5.20 1.00 11.27 0.86 150.35 1.38
Non-Goodwill Companies(27)................. 13.36 13.36 1.15 10.56 5.02 1.10 10.11 0.56 191.97 1.32
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Earning Book Assets Book Earnings Share Yield Ratio(7)
------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. BIF-Insured Thrifts(no MHCs)
- ---------------------------------------------
BIF-Insured Thrifts(59)........................ 18.32 189.20 20.63 191.62 19.37 0.42 1.41 25.78
NYSE Traded Companies(4)....................... 22.71 200.26 27.69 205.23 25.24 0.60 1.30 26.52
AMEX Traded Companies(7)....................... 17.82 170.33 20.03 177.70 20.42 0.55 1.76 33.45
NASDAQ Listed OTC Companies(48)................ 18.02 190.37 20.07 192.31 18.62 0.38 1.38 24.80
California Companies(1)........................ 13.98 173.05 18.55 173.75 13.98 0.00 0.00 0.00
Mid-Atlantic Companies(21)..................... 21.39 176.35 23.64 178.38 22.68 0.36 1.16 25.03
New England Companies(31)...................... 16.70 202.08 18.29 205.09 17.52 0.45 1.49 26.21
North-West Companies(3)........................ 17.27 205.77 20.91 205.77 17.51 0.60 1.67 29.62
South-East Companies(3)........................ 22.26 140.50 23.83 142.03 22.38 0.41 2.44 35.67
Thrift Strategy(44)............................ 18.29 178.58 21.38 180.46 19.52 0.41 1.46 26.52
Mortgage Banker Strategy(7).................... 18.78 214.05 17.74 229.09 20.33 0.29 1.06 21.70
Real Estate Strategy(3)........................ 13.27 200.59 21.59 200.94 14.05 0.26 1.08 13.61
Diversified Strategy(5)........................ 20.54 252.47 17.61 255.61 19.30 0.65 1.47 30.83
Companies Issuing Dividends(47)................ 18.95 194.80 19.61 197.96 19.76 0.52 1.77 32.87
Companies Without Dividends(12)................ 13.41 168.36 24.63 169.16 16.84 0.00 0.00 0.00
Equity/Assets LESS THAN 6%(4).................. 16.56 295.82 16.06 300.49 17.63 0.45 1.14 16.85
Equity/Assets 6-12%(40)........................ 17.70 199.96 17.68 202.72 18.34 0.45 1.49 26.96
Equity/Assets GREATER THAN 12%(15)............. 21.54 143.49 28.73 146.17 23.11 0.32 1.29 24.84
Converted Last 3 Mths (no MHC)(4).............. 0.00 141.85 33.68 142.80 29.91 0.00 0.00 0.00
Actively Traded Companies(17).................. 17.13 209.83 19.82 215.56 17.86 0.64 1.68 28.81
Market Value Below $20 Million(2).............. 14.78 145.84 13.36 147.09 18.33 0.00 0.00 0.00
Holding Company Structure(47).................. 17.86 180.67 21.57 182.77 19.31 0.40 1.38 24.69
Assets Over $1 Billion(18)..................... 21.24 204.96 23.09 206.90 22.24 0.57 1.42 30.10
Assets $500 Million-$1 Billion(15)............. 15.12 197.43 17.52 202.36 15.34 0.44 1.39 22.14
Assets $250-$500 Million(11)................... 17.74 186.00 20.09 190.27 18.42 0.30 1.44 26.09
Assets less than $250 Million(15).............. 18.32 169.77 20.52 171.50 19.61 0.31 1.38 23.20
Goodwill Companies(32)......................... 18.20 196.03 18.68 201.41 19.83 0.44 1.32 24.09
Non-Goodwill Companies(27)..................... 18.46 181.84 22.73 181.84 18.84 0.39 1.49 27.69
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1994 or 1995.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common
equity and assets balances; ROI (return on investment) is current EPS
divided by current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded companies,
and RP Financial, Inc. calculations. The information provided in this
report has been obtained from sources we believe are reliable, but we
cannot guarantee the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -------------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ----------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans)
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(19)......... 12.00 11.86 0.81 7.18 2.53 0.77 6.79 0.54 152.87 0.73
BIF-Insured Thrifts(3)........... 10.33 9.39 1.07 11.06 3.39 0.78 7.73 0.93 94.96 1.13
NASDAQ Listed OTC Companies(22).. 11.79 11.55 0.84 7.66 2.63 0.77 6.91 0.59 145.63 0.78
Florida Companies(3)............. 9.77 9.75 0.74 7.34 2.89 0.65 6.47 0.41 71.26 0.45
Mid-Atlantic Companies(11)....... 12.02 11.61 0.80 7.27 2.34 0.78 6.99 0.70 117.79 0.87
Mid-West Companies(5)............ 13.06 13.05 0.89 7.16 2.86 0.84 6.66 0.41 243.41 0.54
New England Companies(1)......... 8.68 8.63 1.18 13.88 3.90 0.68 8.00 0.68 153.86 1.57
Thrift Strategy(20).............. 12.28 12.06 0.81 6.99 2.58 0.78 6.66 0.58 150.94 0.71
Mortgage Banker Strategy(1)...... 8.12 7.24 0.89 10.88 2.14 0.76 9.24 0.62 63.10 0.94
Diversified Strategy(1).......... 8.68 8.63 1.18 13.88 3.90 0.68 8.00 0.68 153.86 1.57
Companies Issuing Dividends(22).. 11.79 11.55 0.84 7.66 2.63 0.77 6.91 0.59 145.63 0.78
Equity/Assets 6-12%(16).......... 9.85 9.52 0.78 8.11 2.58 0.69 7.08 0.68 85.83 0.77
Equity/Assets >12%(6)............ 17.62 17.62 1.02 6.33 2.78 1.03 6.38 0.33 325.04 0.81
Holding Company Structure(3)..... 10.73 9.82 0.85 8.15 2.84 0.78 7.48 0.81 59.64 0.57
Assets Over $1 Billion(6)........ 8.56 8.06 0.92 10.51 2.86 0.74 8.40 0.61 88.80 0.91
Assets $500 Million-$1 Billion(2) 11.34 11.34 0.80 7.04 2.80 0.73 6.45 0.41 90.57 0.62
Assets $250-$500 Million(6)...... 11.54 11.52 0.88 7.81 2.75 0.86 7.59 0.55 192.81 0.56
Assets less than $250 Million(8). 13.85 13.58 0.78 6.04 2.41 0.75 5.72 0.63 159.02 0.85
Goodwill Companies(9)............ 9.18 8.53 0.89 9.83 2.94 0.76 8.24 0.63 97.85 0.80
Non-Goodwill Companies(13)....... 13.36 13.36 0.81 6.36 2.45 0.78 6.10 0.57 174.30 0.77
MHC Institutions(22)............. 11.79 11.55 0.84 7.66 2.63 0.77 6.91 0.59 145.63 0.78
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- ---------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. MHC Institutions
- ---------------------------------
SAIF-Insured Thrifts(19) 0.00 227.60 31.25 227.95 0.00 0.45 1.73 53.56
BIF-Insured Thrifts(3) 25.66 302.55 30.73 327.82 0.00 0.48 1.43 40.79
NASDAQ Listed OTC Companies(22) 25.66 240.09 31.18 244.59 0.00 0.46 1.70 51.24
Florida Companies(3) 0.00 244.64 23.87 245.42 0.00 0.90 2.62 0.00
Mid-Atlantic Companies(11) 0.00 215.67 33.43 225.43 0.00 0.28 1.27 48.61
Mid-West Companies(5) 0.00 244.92 30.33 245.40 0.00 0.55 2.13 57.66
New England Companies(1) 25.66 333.76 28.96 335.50 0.00 0.76 1.96 50.33
Thrift Strategy(20) 0.00 231.57 30.86 236.33 0.00 0.45 1.73 52.42
Mortgage Banker Strategy(1) 0.00 0.00 37.99 0.00 0.00 0.22 0.89 41.51
Diversified Strategy(1) 25.66 333.76 28.96 335.50 0.00 0.76 1.96 50.33
Companies Issuing Dividends(22) 25.66 240.09 31.18 244.59 0.00 0.46 1.70 51.24
Equity/Assets 6-12%(16) 25.66 258.93 29.70 265.68 0.00 0.45 1.51 49.97
Equity/Assets >12%(6) 0.00 202.41 35.64 202.41 0.00 0.48 2.27 56.92
Holding Company Structure(3) 0.00 275.60 29.52 300.00 0.00 0.41 1.48 52.53
Assets Over $1 Billion(6) 25.66 290.40 30.65 292.05 0.00 0.51 1.67 43.62
Assets $500 Million-$1 Billion(2) 0.00 242.24 27.48 242.24 0.00 0.90 2.35 0.00
Assets $250-$500 Million(6) 0.00 256.60 32.13 257.24 0.00 0.51 1.76 57.40
Assets less than $250 Million(8) 0.00 214.71 31.48 222.84 0.00 0.33 1.58 52.11
Goodwill Companies(9) 25.66 275.36 29.53 288.87 0.00 0.45 1.49 40.49
Non-Goodwill Companies(13) 0.00 222.46 32.17 222.46 0.00 0.46 1.82 60.19
MHC Institutions(22) 25.66 240.09 31.18 244.59 0.00 0.46 1.70 51.24
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1994 or 1995.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common
equity and assets balances; ROI (return on investment) is current EPS
divided by current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded companies,
and RP Financial, Inc. calculations. The information provided in this
report has been obtained from sources we believe are reliable, but we
cannot guarantee the accuracy or completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ----------------------- -------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NYSE Traded Companies
- ---------------------
AHM Ahmanson and Co. H.F. of CA(8)........ 4.11 3.50 0.79 19.65 5.18 0.70 17.24 1.73 46.72 1.22
CFB Commercial Federal Corp. of NE........ 6.38 5.75 0.97 15.98 5.93 0.95 15.67 0.84 80.01 0.90
DME Dime Bancorp, Inc. of NY*............. 6.02 4.94 0.62 11.10 3.51 0.62 11.10 1.06 45.34 0.71
DSL Downey Financial Corp. of CA.......... 7.37 7.29 0.80 11.04 5.27 0.77 10.58 0.89 61.86 0.60
FED FirstFed Fin. Corp. of CA............. 5.35 5.31 0.56 11.24 5.47 0.55 11.03 0.96 210.84 2.62
GSB Golden State Bancorp of CA(8)......... 6.04 5.45 0.60 10.47 4.89 0.72 12.56 1.08 90.12 1.31
GDW Golden West Fin. Corp. of CA.......... 6.82 6.82 0.91 14.14 6.35 0.90 13.91 1.07 55.16 0.70
GPT GreenPoint Fin. Corp. of NY*.......... 9.70 5.29 1.11 10.83 4.70 1.08 10.52 2.90 28.75 1.22
JSB JSB Financial, Inc. of NY*............ 23.21 23.21 1.92 8.59 5.44 1.71 7.64 NA NA 0.58
NYB New York Bancorp, Inc. of NY(8)....... 5.46 5.46 1.65 31.75 5.56 1.68 32.39 0.86 66.31 0.91
OCN Ocwen Financial Corp. of FL........... 13.68 13.16 2.82 26.05 4.58 0.80 7.41 6.19 14.31 1.43
SIB Staten Island Bancorp of NY*.......... 25.87 25.17 0.70 5.11 1.53 1.53 11.18 0.83 71.34 1.43
WES Westcorp Inc. of Orange CA............ 9.35 9.33 1.03 11.08 7.32 -0.21 -2.22 0.70 129.53 1.81
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA........ 16.95 16.95 0.98 5.64 4.38 0.95 5.46 0.50 201.03 1.32
ANE Alliance Bancorp of NE, of CT*........ 7.61 7.39 0.84 11.87 5.89 0.59 8.30 1.60 75.91 1.91
BKC American Bank of Waterbury CT*........ 9.01 8.72 1.32 15.52 6.50 1.14 13.44 2.11 41.86 1.54
BFD BostonFed Bancorp of MA............... 8.37 8.06 0.76 8.43 5.77 0.67 7.50 0.18 371.41 0.82
CFX CFX Corp of Keene NH(8)*.............. 8.55 8.25 0.61 7.38 1.78 0.99 11.95 0.59 128.94 1.06
CNY Carver Bancorp, Inc. of NY............ 8.48 8.16 -0.11 -1.33 -1.32 0.02 0.20 1.67 41.11 1.15
CBK Citizens First Fin.Corp. of IL........ 13.88 13.88 0.70 4.87 3.53 0.47 3.27 0.69 44.35 0.36
EBI Equality Bancorp, Inc. of MO.......... 11.18 11.18 0.53 7.30 2.97 0.12 1.59 0.39 31.69 0.25
ESX Essex Bancorp of Norfolk VA(8)........ 0.02 -0.08 0.12 NM 4.05 0.10 NM 2.11 51.58 1.27
FCB Falmouth Bancorp, Inc. of MA*......... 23.94 23.94 0.98 4.06 2.67 0.83 3.42 NA NA 0.83
FAB FirstFed America Bancorp of MA........ 11.17 11.17 0.17 1.58 0.99 0.53 4.99 0.35 263.67 1.19
GAF GA Financial Corp. of PA.............. 14.82 14.67 1.14 7.12 5.68 1.08 6.72 0.22 76.28 0.43
HBS Haywood Bancshares, Inc. of NC*....... 14.19 13.69 1.34 11.63 7.01 1.34 11.63 0.67 71.19 0.64
KNK Kankakee Bancorp, Inc. of IL.......... 11.01 10.38 0.88 8.04 6.09 0.86 7.86 1.27 49.02 0.88
KYF Kentucky First Bancorp of KY.......... 17.03 17.03 1.14 6.80 5.50 1.12 6.71 0.13 348.65 0.77
MBB MSB Bancorp of Middletown NY(8)*...... 8.23 4.39 0.53 7.06 4.18 0.40 5.29 0.78 39.12 0.63
NBN Northeast Bancorp of ME*.............. 7.54 6.80 0.60 8.33 4.06 0.58 8.10 1.24 80.05 1.21
PDB Piedmont Bancorp, Inc. of NC.......... 16.19 16.19 1.19 7.28 5.08 1.19 7.28 1.29 52.20 0.81
SSB Scotland Bancorp, Inc. of NC.......... 24.07 24.07 1.67 5.26 5.69 1.67 5.26 NA NA 0.57
SZB SouthFirst Bancshares of AL........... 9.67 9.43 0.56 4.44 2.86 0.57 4.51 1.28 37.22 0.78
SRN Southern Banc Company of AL........... 17.08 16.93 0.48 2.77 2.47 0.48 2.77 NA NA 0.19
SSM Stone Street Bancorp of NC............ 28.74 28.74 1.45 4.58 4.00 1.45 4.58 0.27 193.22 0.61
TSH Teche Holding Company of LA........... 13.54 13.54 0.97 7.28 5.20 0.93 6.95 0.38 215.27 0.97
FTF Texarkana Fst. Fin. Corp of AR........ 15.15 15.15 1.76 11.23 6.14 1.72 10.97 0.17 377.18 0.76
THR Three Rivers Fin. Corp. of MI......... 13.77 13.72 0.90 6.47 4.55 0.85 6.08 1.08 47.87 0.80
WSB Washington SB, FSB of MD.............. 8.51 8.51 0.88 10.51 6.26 0.52 6.26 NA NA 0.96
WFI Winton Financial Corp. of OH.......... 7.17 7.03 1.05 14.68 5.65 0.86 12.03 0.25 100.24 0.29
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN........... 8.98 8.82 0.75 8.89 6.64 0.49 5.79 1.48 31.23 0.63
FBER 1st Bergen Bancorp of NJ.............. 13.52 13.52 0.78 5.27 3.57 0.78 5.27 0.75 140.88 2.34
AFED AFSALA Bancorp, Inc. of NY............ 12.52 12.52 0.79 5.91 4.45 0.79 5.91 0.30 234.30 1.46
ALBK ALBANK Fin. Corp. of Albany NY........ 8.81 6.84 1.18 12.94 6.82 1.17 12.87 0.88 81.33 1.02
AMFC AMB Financial Corp. of IN............. 14.77 14.77 1.07 6.93 6.01 0.68 4.38 NA NA 0.53
ASBP ASB Financial Corp. of OH............. 15.47 15.47 0.92 5.85 4.35 0.92 5.85 0.91 78.25 1.03
ABBK Abington Bancorp of MA*............... 6.83 6.21 0.87 12.53 5.75 0.77 11.06 0.18 233.13 0.68
AABC Access Anytime Bancorp of NM.......... 8.65 8.65 1.44 22.38 11.66 1.34 20.78 1.58 31.35 0.95
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- ----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NYSE Traded Companies
- ---------------------
AHM Ahmanson and Co. H.F. of CA(8) ....... 19.30 NM 15.72 NM 22.00 0.88 1.12 21.57
CFB Commercial Federal Corp. of NE ....... 16.87 250.71 15.98 278.00 17.20 0.22 0.62 10.53
DME Dime Bancorp, Inc. of NY*............. 28.46 264.42 15.91 322.33 28.46 0.16 0.54 15.24
DSL Downey Financial Corp. of CA.......... 18.97 199.38 14.70 201.76 19.79 0.32 1.00 18.93
FED FirstFed Fin. Corp. of CA............. 18.29 189.54 10.15 191.09 18.64 0.00 0.00 0.00
GSB Golden State Bancorp of CA(8)......... 20.44 199.42 12.04 220.98 17.03 0.00 0.00 0.00
GDW Golden West Fin. Corp. of CA.......... 15.75 206.87 14.10 206.87 16.01 0.50 0.51 8.05
GPT GreenPoint Fin. Corp. of NY*.......... 21.30 247.07 23.97 NM 21.93 0.64 1.73 36.78
JSB JSB Financial, Inc. of NY*............ 18.37 151.77 35.23 151.77 20.68 1.60 2.94 54.05
NYB New York Bancorp, Inc. of NY(8)....... 18.00 NM 29.20 NM 17.64 0.60 1.34 24.19
OCN Ocwen Financial Corp. of FL........... 21.83 NM 56.01 NM NM 0.00 0.00 0.00
SIB Staten Island Bancorp of NY*.......... NM 137.76 35.64 141.58 29.91 0.00 0.00 0.00
WES Westcorp Inc. of Orange CA............ 13.66 144.16 13.48 144.49 NM 0.40 2.09 28.57
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA........ 22.81 128.51 21.78 128.51 23.54 0.44 1.99 45.36
ANE Alliance Bancorp of NE, of CT*........ 16.98 181.72 13.82 186.93 24.28 0.20 0.96 16.26
BKC American Bank of Waterbury CT*........ 15.39 212.05 19.12 219.20 17.78 1.52 2.89 44.44
BFD BostonFed Bancorp of MA............... 17.34 150.14 12.57 155.83 19.46 0.28 1.26 21.88
CFX CFX Corp of Keene NH(8)*.............. NM 303.04 25.92 314.11 NM 0.44 1.42 NM
CNY Carver Bancorp, Inc. of NY............ NM 99.28 8.42 103.21 NM 0.00 0.00 NM
CBK Citizens First Fin.Corp. of IL........ 28.33 141.29 19.61 141.29 NM 0.00 0.00 0.00
EBI Equality Bancorp, Inc. of MO.......... NM 150.34 16.81 150.34 NM 0.24 1.55 52.17
ESX Essex Bancorp of Norfolk VA(8)........ 24.70 NM 2.72 NM 27.44 0.00 0.00 0.00
FCB Falmouth Bancorp, Inc. of MA*......... NM 147.23 35.24 147.23 NM 0.24 1.02 38.10
FAB FirstFed America Bancorp of MA........ NM 136.18 15.21 136.18 NM 0.00 0.00 0.00
GAF GA Financial Corp. of PA.............. 17.59 126.25 18.71 127.52 18.63 0.48 2.53 44.44
HBS Haywood Bancshares, Inc. of NC*....... 14.26 128.32 18.20 132.92 14.26 0.60 2.70 38.46
KNK Kankakee Bancorp, Inc. of IL.......... 16.42 131.05 14.43 139.02 16.80 0.48 1.33 21.82
KYF Kentucky First Bancorp of KY.......... 18.18 123.67 21.06 123.67 18.42 0.50 3.57 64.94
MBB MSB Bancorp of Middletown NY(8)*...... 23.93 162.41 13.37 304.69 NM 0.56 1.54 36.84
NBN Northeast Bancorp of ME*.............. 24.64 182.35 13.76 202.23 25.37 0.21 1.22 30.00
PDB Piedmont Bancorp, Inc. of NC.......... 19.69 138.77 22.46 138.77 19.69 0.40 3.76 74.07
SSB Scotland Bancorp, Inc. of NC.......... 17.57 131.82 31.72 131.82 17.57 0.20 1.96 34.48
SZB SouthFirst Bancshares of AL........... NM 134.23 12.98 137.67 NM 0.60 2.73 NM
SRN Southern Banc Company of AL........... NM 112.82 19.27 113.83 NM 0.35 2.10 NM
SSM Stone Street Bancorp of NC............ 25.00 123.70 35.56 123.70 25.00 0.46 2.27 56.79
TSH Teche Holding Company of LA........... 19.25 135.18 18.30 135.18 20.14 0.50 2.30 44.25
FTF Texarkana Fst. Fin. Corp of AR........ 16.28 180.41 27.34 180.41 16.67 0.56 2.00 32.56
THR Three Rivers Fin. Corp. of MI......... 22.00 139.95 19.26 140.40 23.40 0.44 2.00 44.00
WSB Washington SB, FSB of MD.............. 15.98 161.99 13.79 161.99 26.81 0.10 1.20 19.23
WFI Winton Financial Corp. of OH.......... 17.70 245.69 17.62 250.66 21.59 0.50 1.75 31.06
NASDAQ Listed OTC Companies
- ---------------------------
FBCV 1st Bancorp of Vincennes IN........... 15.06 129.27 11.61 131.58 23.09 0.27 0.99 14.92
FBER 1st Bergen Bancorp of NJ.............. 28.04 151.35 20.47 151.35 28.04 0.20 0.96 27.03
AFED AFSALA Bancorp, Inc. of NY ........... 22.47 137.74 17.24 137.74 22.47 0.28 1.40 31.46
ALBK ALBANK Fin. Corp. of Albany NY........ 14.66 176.78 15.57 227.59 14.75 0.72 1.46 21.43
AMFC AMB Financial Corp. of IN............. 16.63 115.08 16.99 115.08 26.31 0.28 1.59 26.42
ASBP ASB Financial Corp. of OH............. 22.98 134.56 20.81 134.56 22.98 0.40 2.81 64.52
ABBK Abington Bancorp of MA*............... 17.40 209.01 14.27 229.70 19.70 0.20 0.96 16.67
AABC Access Anytime Bancorp of NM.......... 8.58 143.94 12.45 143.94 9.24 0.00 0.00 0.00
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ----------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
AFBC Advance Fin. Bancorp of WV.......... 15.22 15.22 0.87 5.65 4.23 0.84 5.45 1.10 27.69 0.35
AADV Advantage Bancorp, Inc. of WI(8).... 10.02 9.38 1.12 12.13 5.19 0.99 10.64 0.47 121.57 1.05
AFCB Affiliated Comm BC, Inc of MA(8).... 9.79 9.74 1.08 11.08 4.88 1.05 10.71 0.39 192.06 1.21
ALBC Albion Banc Corp. of Albion NY...... 8.57 8.57 0.50 5.58 4.09 0.49 5.45 0.12 321.43 0.53
ABCL Alliance Bancorp, Inc. of IL........ 9.60 9.49 0.84 9.10 4.45 0.93 10.10 0.27 147.57 0.56
AHCI Ambanc Holding Co., Inc. of NY*..... 11.37 11.37 -0.53 -4.16 -3.19 -0.60 -4.71 0.73 107.99 1.48
ASBI Ameriana Bancorp of IN.............. 11.36 11.36 0.91 8.24 5.46 0.80 7.21 NA NA 0.39
ABCW Anchor Bancorp Wisconsin of WI...... 6.64 6.54 1.04 16.41 4.94 0.96 15.14 0.97 117.38 1.42
ANDB Andover Bancorp, Inc. of MA*........ 8.10 8.10 1.06 13.09 6.39 1.03 12.78 0.62 151.68 1.27
ASFC Astoria Financial Corp. of NY....... 8.07 5.61 0.82 10.37 4.14 0.76 9.64 0.56 67.77 0.92
AVND Avondale Fin. Corp. of IL........... 8.48 8.48 -2.10 -23.98 -24.85 -1.78 -20.34 1.35 86.34 2.56
BKCT Bancorp Connecticut of CT*.......... 10.60 10.60 1.39 13.29 5.80 1.23 11.80 0.91 131.37 2.04
BPLS Bank Plus Corp. of CA............... 4.35 3.96 0.34 7.31 4.26 0.39 8.21 1.66 72.86 1.76
BNKU Bank United Corp. of TX............. 4.89 4.77 0.69 13.68 5.21 0.60 12.00 0.68 41.06 0.36
BWFC Bank West Fin. Corp. of MI.......... 13.66 13.66 0.72 4.94 2.99 0.54 3.67 0.48 32.03 0.22
BANC BankAtlantic Bancorp of FL.......... 5.51 4.56 1.04 18.21 7.12 0.55 9.62 1.10 84.73 1.35
BKUNA BankUnited Fin. Corp. of FL......... 4.28 3.80 0.28 6.95 2.74 0.21 5.30 0.37 37.97 0.16
BVCC Bay View Capital Corp. of CA........ 5.35 4.44 0.44 7.40 3.24 0.60 10.08 0.51 230.25 1.59
FSNJ Bayonne Banchsares of NJ............ 15.76 15.76 0.46 3.99 2.03 0.65 5.73 1.01 48.09 1.27
BFSB Bedford Bancshares, Inc. of VA...... 14.52 14.52 1.21 8.45 4.87 1.20 8.39 0.54 96.46 0.60
BFFC Big Foot Fin. Corp. of IL........... 17.53 17.53 0.60 3.46 2.19 0.53 3.05 0.09 150.75 0.30
BYFC Broadway Fin. Corp. of CA........... 9.84 9.84 0.29 2.75 3.36 0.33 3.14 1.62 52.84 1.02
CBES CBES Bancorp, Inc. of MO............ 15.78 15.78 1.10 6.32 4.32 0.96 5.50 0.54 90.67 0.54
CCFH CCF Holding Company of GA........... 9.39 9.39 0.13 1.11 0.70 -0.22 -1.85 0.50 106.86 0.68
CENF CENFED Financial Corp. of CA(8)..... 6.14 6.13 0.61 11.27 5.08 0.55 10.15 NA NA 1.12
CFSB CFSB Bancorp of Lansing MI.......... 7.92 7.92 1.26 16.41 4.81 1.18 15.36 0.11 526.14 0.62
CKFB CKF Bancorp of Danville KY.......... 21.89 21.89 1.84 7.78 6.29 1.38 5.85 0.47 42.66 0.22
CNSB CNS Bancorp, Inc. of MO............. 24.43 24.43 0.88 3.56 2.85 0.88 3.56 0.13 293.18 0.58
CSBF CSB Financial Group Inc of IL....... 24.00 22.65 0.50 2.01 2.11 0.43 1.73 0.69 52.91 0.63
CBCI Calumet Bancorp of Chicago IL....... 16.77 16.77 1.61 10.01 6.91 1.62 10.09 1.64 76.23 1.58
CAFI Camco Fin. Corp. of OH.............. 9.41 8.73 1.15 11.99 6.63 0.93 9.73 0.48 53.21 0.30
CMRN Cameron Fin. Corp. of MO............ 21.43 21.43 1.18 5.29 4.64 1.17 5.23 0.98 82.65 0.94
CAPS Capital Savings Bancorp of MO(8).... 9.43 9.43 0.98 11.06 5.40 0.95 10.62 0.41 78.85 0.40
CFNC Carolina Fincorp of NC*............. 22.71 22.71 1.22 5.24 4.22 1.17 5.02 0.10 365.18 0.50
CASB Cascade Financial Corp. of WA....... 6.93 6.93 0.66 10.21 5.02 0.64 9.93 0.35 274.48 1.13
CATB Catskill Fin. Corp. of NY*.......... 24.32 24.32 1.34 5.20 4.59 1.34 5.20 0.35 184.75 1.49
CNIT Cenit Bancorp of Norfolk VA......... 6.95 6.36 0.80 11.30 4.29 0.74 10.50 0.52 103.38 0.77
CEBK Central Co-Op. Bank of MA*.......... 9.90 8.91 0.87 8.69 4.62 0.83 8.22 0.42 185.68 1.08
CENB Century Bancorp, Inc. of NC......... 30.15 30.15 1.61 5.35 4.64 1.62 5.37 0.58 93.95 0.84
CBSB Charter Financial Inc. of IL(8)..... 15.54 13.92 1.36 9.12 3.77 1.50 10.06 0.62 90.95 0.76
COFI Charter One Financial of OH......... 6.97 6.51 0.81 11.85 3.00 1.19 17.33 0.38 150.61 0.89
CVAL Chester Valley Bancorp of PA........ 8.81 8.81 1.00 11.61 4.11 0.96 11.05 0.25 385.96 1.15
CTZN CitFed Bancorp of Dayton OH(8)...... 6.06 5.54 0.87 13.86 3.81 0.87 13.86 0.37 143.60 1.01
CLAS Classic Bancshares, Inc. of KY...... 14.88 12.64 0.81 5.53 4.05 0.95 6.47 0.42 148.74 0.92
CBSA Coastal Bancorp of Houston TX....... 3.47 2.92 0.42 12.45 7.30 0.43 12.77 NA NA 0.58
CFCP Coastal Fin. Corp. of SC............ 5.98 5.98 1.22 19.67 5.95 1.03 16.52 0.59 151.67 1.20
CMSB Commonwealth Bancorp Inc of PA...... 9.47 7.48 0.73 7.51 4.81 0.56 5.72 0.42 94.35 0.69
CMSV Commty. Svgs, MHC of FL (48.5)...... 11.34 11.34 0.80 7.04 2.80 0.73 6.45 0.41 90.57 0.62
CFTP Community Fed. Bancorp of MS........ 26.46 26.46 1.32 4.49 3.27 1.32 4.49 0.49 53.05 0.45
CFFC Community Fin. Corp. of VA.......... 13.63 13.57 1.07 7.86 4.86 1.08 7.91 0.44 129.75 0.65
CFBC Community First Bnkg Co. of GA...... 17.80 17.57 0.59 6.09 2.13 0.59 6.09 2.19 25.76 0.75
CIBI Community Inv. Bancorp of OH........ 11.58 11.58 0.97 8.30 5.67 0.97 8.30 0.65 82.39 0.62
COOP Cooperative Bancshares of NC........ 7.66 7.66 0.63 8.32 3.80 0.62 8.21 0.17 142.58 0.30
CRZY Crazy Woman Creek Bncorp of WY...... 23.63 23.63 1.28 4.92 4.35 1.30 4.99 0.18 237.50 0.92
DNFC D&N Financial Corp. of MI........... 5.40 5.35 0.87 15.65 5.66 0.78 14.06 0.29 199.00 0.80
DCBI Delphos Citizens Bancorp of OH...... 26.78 26.78 1.69 6.10 4.38 1.69 6.10 0.35 29.22 0.13
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
AFBC Advance Fin. Bancorp of WV.......... 23.67 131.05 19.95 131.05 24.54 0.32 1.61 38.10
AADV Advantage Bancorp, Inc. of WI(8).... 19.26 216.26 21.67 231.17 21.96 0.40 0.58 11.20
AFCB Affiliated Comm BC, Inc of MA(8).... 20.50 214.67 21.01 215.79 21.20 0.60 1.61 32.97
ALBC Albion Banc Corp. of Albion NY...... 24.48 133.13 11.41 133.13 25.05 0.11 1.02 25.00
ABCL Alliance Bancorp, Inc. of IL........ 22.46 176.16 16.91 178.24 20.25 0.44 1.53 34.38
AHCI Ambanc Holding Co., Inc. of NY*..... NM 136.84 15.56 136.84 NM 0.24 1.25 NM
ASBI Ameriana Bancorp of IN.............. 18.30 149.20 16.96 149.20 20.92 0.64 3.12 57.14
ABCW Anchor Bancorp Wisconsin of WI...... 20.23 312.28 20.75 317.40 21.92 0.32 0.72 14.55
ANDB Andover Bancorp, Inc. of MA*........ 15.65 193.34 15.65 193.34 16.02 0.76 1.90 29.69
ASFC Astoria Financial Corp. of NY....... 24.17 190.87 15.40 274.29 26.00 0.80 1.29 31.25
AVND Avondale Fin. Corp. of IL........... NM 109.40 9.28 109.40 NM 0.00 0.00 NM
BKCT Bancorp Connecticut of CT*.......... 17.24 216.92 22.99 216.92 19.42 0.52 2.60 44.83
BPLS Bank Plus Corp. of CA............... 23.46 162.93 7.09 178.78 20.89 0.00 0.00 0.00
BNKU Bank United Corp. of TX............. 19.20 249.51 12.21 256.11 21.89 0.64 1.32 25.40
BWFC Bank West Fin. Corp. of MI.......... NM 162.85 22.24 162.85 NM 0.24 1.67 55.81
BANC BankAtlantic Bancorp of FL.......... 14.04 244.74 13.47 295.24 26.57 0.13 0.87 12.26
BKUNA BankUnited Fin. Corp. of FL......... NM 152.03 6.51 171.36 NM 0.00 0.00 0.00
BVCC Bay View Capital Corp. of CA........ NM 248.44 13.29 299.41 22.63 0.40 1.12 34.48
FSNJ Bayonne Banchsares of NJ............ NM 139.32 21.95 139.32 NM 0.17 1.15 56.67
BFSB Bedford Bancshares, Inc. of VA...... 20.51 167.32 24.30 167.32 20.66 0.56 1.92 39.44
BFFC Big Foot Fin. Corp. of IL........... NM 154.08 27.02 154.08 NM 0.00 0.00 0.00
BYFC Broadway Fin. Corp. of CA........... 29.76 84.63 8.33 84.63 26.04 0.20 1.60 47.62
CBES CBES Bancorp, Inc. of MO............ 23.17 147.14 23.22 147.14 26.58 0.40 1.58 36.70
CCFH CCF Holding Company of GA........... NM 164.75 15.48 164.75 NM 0.64 2.98 NM
CENF CENFED Financial Corp. of CA(8)..... 19.67 200.40 12.30 200.75 21.86 0.36 0.80 15.65
CFSB CFSB Bancorp of Lansing MI.......... 20.81 328.04 25.98 328.04 22.24 0.52 1.79 37.14
CKFB CKF Bancorp of Danville KY.......... 15.89 129.17 28.27 129.17 21.13 0.50 2.44 38.76
CNSB CNS Bancorp, Inc. of MO............. NM 126.12 30.82 126.12 NM 0.24 1.32 46.15
CSBF CSB Financial Group Inc of IL....... NM 99.13 23.80 105.04 NM 0.00 0.00 0.00
CBCI Calumet Bancorp of Chicago IL....... 14.47 141.45 23.72 141.45 14.36 0.00 0.00 0.00
CAFI Camco Fin. Corp. of OH.............. 15.07 173.32 16.30 186.83 18.58 0.54 2.05 30.86
CMRN Cameron Fin. Corp. of MO............ 21.54 114.67 24.58 114.67 21.77 0.28 1.38 29.79
CAPS Capital Savings Bancorp of MO(8).... 18.50 191.47 18.06 191.47 19.28 0.24 1.04 19.20
CFNC Carolina Fincorp of NC*............. 23.71 123.12 27.96 123.12 24.73 0.24 1.39 32.88
CASB Cascade Financial Corp. of WA....... 19.93 170.92 11.85 170.92 20.49 0.00 0.00 0.00
CATB Catskill Fin. Corp. of NY*.......... 21.80 115.50 28.10 115.50 21.80 0.32 1.79 39.02
CNIT Cenit Bancorp of Norfolk VA......... 23.30 268.07 18.62 292.70 25.08 1.20 1.52 35.40
CEBK Central Co-Op. Bank of MA*.......... 21.64 178.67 17.68 198.34 22.87 0.32 0.99 21.48
CENB Century Bancorp, Inc. of NC......... 21.53 113.67 34.27 113.67 21.48 2.00 2.32 50.00
CBSB Charter Financial Inc. of IL(8)..... 26.49 234.41 36.44 261.80 24.01 0.32 0.96 25.40
COFI Charter One Financial of OH......... NM 304.41 21.21 325.71 22.79 1.00 1.52 50.76
CVAL Chester Valley Bancorp of PA........ 24.31 266.44 23.48 266.44 25.54 0.44 1.25 30.34
CTZN CitFed Bancorp of Dayton OH(8)...... 26.25 341.57 20.72 NM 26.25 0.36 0.65 17.14
CLAS Classic Bancshares, Inc. of KY...... 24.70 133.84 19.92 157.59 21.09 0.28 1.38 34.15
CBSA Coastal Bancorp of Houston TX....... 13.70 162.05 5.62 192.73 13.37 0.48 1.46 20.00
CFCP Coastal Fin. Corp. of SC............ 16.79 305.13 18.24 305.13 20.00 0.36 1.64 27.48
CMSB Commonwealth Bancorp Inc of PA...... 20.79 158.85 15.04 201.15 27.27 0.32 1.52 31.68
CMSV Commty. Svgs, MHC of FL (48.5)...... NM 242.24 27.48 242.24 NM 0.90 2.35 NM
CFTP Community Fed. Bancorp of MS........ NM 142.54 37.71 142.54 NM 0.32 1.72 52.46
CFFC Community Fin. Corp. of VA.......... 20.58 154.97 21.12 155.69 20.44 0.56 1.85 38.10
CFBC Community First Bnkg Co. of GA...... NM 154.64 27.53 156.74 NM 0.60 1.33 62.50
CIBI Community Inv. Bancorp of OH........ 17.65 146.22 16.93 146.22 17.65 0.32 1.78 31.37
COOP Cooperative Bancshares of NC........ 26.33 208.33 15.97 208.33 26.69 0.00 0.00 0.00
CRZY Crazy Woman Creek Bncorp of WY...... 23.00 114.69 27.11 114.69 22.70 0.40 2.32 53.33
DNFC D&N Financial Corp. of MI........... 17.68 257.42 13.91 259.83 19.68 0.18 0.65 11.46
DCBI Delphos Citizens Bancorp of OH...... 22.85 143.29 38.38 143.29 22.85 0.24 1.13 25.81
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- ------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
DIME Dime Community Bancorp of NY*........ 12.51 10.82 0.89 6.05 3.94 0.85 5.80 0.53 145.69 1.36
DIBK Dime Financial Corp. of CT*.......... 8.27 8.05 1.94 23.88 10.71 1.92 23.73 0.30 433.25 3.30
EGLB Eagle BancGroup of IL................ 11.87 11.87 0.29 2.43 2.07 0.21 1.75 1.36 40.27 0.76
EBSI Eagle Bancshares of Tucker GA........ 7.83 7.83 0.66 8.05 4.49 0.67 8.14 1.18 56.90 0.92
EGFC Eagle Financial Corp. of CT(8)....... 7.06 5.73 0.42 5.96 2.12 0.55 7.88 0.52 87.45 0.86
ETFS East Texas Fin. Serv. of TX.......... 17.47 17.47 0.63 3.48 3.16 0.59 3.24 0.33 68.42 0.45
ESBK Elmira Svgs Bank (The) of NY*........ 6.32 6.32 0.39 6.11 4.12 0.42 6.57 0.70 90.95 0.82
EMLD Emerald Financial Corp. of OH........ 8.03 7.92 1.03 13.43 5.50 0.98 12.76 0.47 57.48 0.35
EFBC Empire Federal Bancorp of MT......... 36.37 36.37 1.47 3.98 3.44 1.47 3.98 0.05 357.14 0.45
EFBI Enterprise Fed. Bancorp of OH........ 10.75 10.75 0.82 6.96 3.36 0.74 6.27 0.01 NA 0.32
EQSB Equitable FSB of Wheaton MD.......... 5.20 5.20 0.76 14.86 6.03 0.74 14.62 0.54 32.66 0.26
FCBF FCB Fin. Corp. of Neenah WI.......... 13.89 13.89 1.04 6.66 3.10 0.71 4.53 0.26 269.82 0.89
FFDF FFD Financial Corp. of OH............ 24.06 24.06 1.82 7.45 5.32 0.87 3.56 0.05 642.86 0.42
FFLC FFLC Bancorp of Leesburg FL.......... 12.85 12.85 1.00 7.15 5.06 0.95 6.80 0.19 224.83 0.53
FFFC FFVA Financial Corp. of VA(8)........ 13.70 13.43 1.15 8.57 3.66 1.36 10.16 0.11 530.28 1.02
FFWC FFW Corporation of Wabash IN......... 9.57 8.73 1.03 10.52 6.53 1.00 10.26 0.31 120.30 0.56
FFYF FFY Financial Corp. of OH............ 13.59 13.59 1.29 9.32 5.56 1.27 9.17 0.62 74.80 0.61
FMCO FMS Financial Corp. of NJ............ 6.49 6.39 1.02 15.82 6.73 1.01 15.69 1.15 43.53 0.94
FFHH FSF Financial Corp. of MN............ 10.91 10.91 0.83 7.18 5.20 0.82 7.11 0.22 102.41 0.32
FOBC Fed One Bancorp of Wheeling WV(8).... 11.07 10.60 0.92 8.13 3.70 0.91 8.01 0.36 111.94 0.88
FBCI Fidelity Bancorp of Chicago IL....... 10.47 10.45 0.22 2.11 1.52 0.63 6.06 NA NA 0.13
FSBI Fidelity Bancorp, Inc. of PA......... 6.84 6.84 0.77 11.22 5.76 0.76 10.96 0.15 349.48 1.04
FFFL Fidelity Bcsh MHC of FL (47.7)....... 8.21 8.15 0.67 7.64 2.98 0.57 6.49 0.40 51.95 0.28
FFED Fidelity Fed. Bancorp of IN.......... 7.28 7.28 0.73 12.79 5.97 0.68 11.87 0.35 240.48 1.01
FFOH Fidelity Financial of OH............. 12.01 10.59 0.94 7.26 4.83 0.90 7.01 0.18 167.81 0.38
FIBC Financial Bancorp, Inc. of NY........ 8.93 8.89 0.92 9.85 5.94 0.98 10.50 1.94 25.52 0.95
FBSI First Bancshares, Inc. of MO......... 14.40 14.40 1.17 8.23 5.13 1.11 7.85 0.42 76.11 0.37
FBBC First Bell Bancorp of PA............. 10.80 10.80 1.10 10.10 5.52 1.08 9.93 0.09 112.78 0.12
SKBO First Carnegie MHC of PA(45.0)....... 17.20 17.20 0.64 4.58 2.10 0.71 5.13 0.78 47.72 0.85
FSTC First Citizens Corp of GA............ 10.12 7.98 1.96 20.63 6.72 1.75 18.43 1.12 99.21 1.46
FCME First Coastal Corp. of ME*........... 10.12 10.12 0.85 9.00 6.76 0.68 7.26 0.56 325.79 2.47
FFBA First Colorado Bancorp of CO......... 13.46 13.18 1.30 9.81 4.15 1.25 9.39 0.15 201.71 0.40
FDEF First Defiance Fin.Corp. of OH....... 18.43 18.43 0.96 4.71 4.10 0.95 4.63 0.33 140.92 0.60
FESX First Essex Bancorp of MA*........... 7.60 6.68 0.83 11.19 5.24 0.74 9.97 0.54 164.26 1.47
FFSX First FSB MHC Sxld of IA(46.1)....... 8.86 8.79 0.73 8.67 3.33 0.71 8.38 0.19 195.85 0.49
FFES First Fed of E. Hartford CT.......... 6.82 6.82 0.57 8.80 5.15 0.63 9.74 0.30 88.43 1.33
BDJI First Fed. Bancorp. of MN............ 10.18 10.18 0.65 6.01 3.65 0.65 6.01 0.19 198.64 0.79
FFBH First Fed. Bancshares of AR.......... 14.89 14.89 1.06 6.78 4.30 1.01 6.48 0.96 23.38 0.29
FTFC First Fed. Capital Corp. of WI....... 7.08 6.70 1.12 17.09 6.00 0.89 13.47 0.32 155.81 0.61
FFKY First Fed. Fin. Corp. of KY.......... 13.67 12.92 1.64 11.98 6.94 1.61 11.82 0.47 98.79 0.52
FFBZ First Federal Bancorp of OH.......... 7.61 7.60 0.97 12.68 4.88 0.97 12.68 0.64 149.74 1.10
FFCH First Fin. Holdings Inc. of SC....... 6.44 6.44 0.87 14.13 4.17 0.85 13.80 1.35 48.83 0.82
FFHS First Franklin Corp. of OH........... 9.21 9.16 0.74 8.28 5.36 0.68 7.58 0.58 76.37 0.66
FGHC First Georgia Hold. Corp of GA....... 8.31 7.70 1.13 13.71 5.40 0.94 11.35 4.97 12.42 0.71
FSPG First Home Bancorp of NJ(8).......... 6.95 6.85 0.91 13.59 5.53 0.89 13.28 0.78 85.83 1.29
FFSL First Independence Corp. of KS....... 10.00 10.00 0.65 6.26 5.07 0.65 6.26 1.44 40.91 0.81
FISB First Indiana Corp. of IN............ 9.48 9.38 1.16 12.17 5.19 0.93 9.83 1.38 100.34 1.63
FKFS First Keystone Fin. Corp of PA....... 6.62 6.62 0.80 11.37 6.59 0.72 10.25 1.15 38.88 0.86
FLKY First Lancaster Bncshrs of KY........ 28.51 28.51 1.16 3.62 3.50 1.16 3.62 3.49 8.62 0.34
FLFC First Liberty Fin. Corp. of GA....... 7.59 6.90 0.76 10.21 3.62 0.78 10.54 1.00 96.64 1.37
CASH First Midwest Fin., Inc. of OH....... 10.82 9.66 0.96 8.50 5.99 0.89 7.95 0.74 67.97 0.80
FMBD First Mutual Bancorp Inc of IL....... 13.84 10.62 0.25 1.75 1.42 0.20 1.44 0.40 92.09 0.46
FMSB First Mutual SB of Bellevue WA*...... 6.79 6.79 1.03 15.34 5.81 1.01 15.05 0.15 720.77 1.33
FNGB First Northern Cap. Corp of WI....... 11.05 11.05 0.94 8.35 5.04 0.90 7.99 0.09 535.75 0.53
FFPB First Palm Beach Bancorp of FL....... 6.37 6.23 0.56 8.55 4.96 0.43 6.57 0.54 53.27 0.45
FSLA First SB SLA MHC of NJ (47.5)(8)..... 9.69 8.85 0.90 9.58 2.61 0.95 10.07 0.59 98.01 1.03
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
DIME Dime Community Bancorp of NY*...... 25.40 161.19 20.17 186.48 26.52 0.32 1.33 33.68
DIBK Dime Financial Corp. of CT*........ 9.34 197.07 16.30 202.34 9.39 0.48 1.59 14.81
EGLB Eagle BancGroup of IL.............. NM 120.36 14.28 120.36 NM 0.00 0.00 0.00
EBSI Eagle Bancshares of Tucker GA...... 22.27 167.03 13.08 167.03 22.04 0.60 2.81 62.50
EGFC Eagle Financial Corp. of CT(8)..... NM 237.64 16.78 293.04 NM 1.00 1.80 NM
ETFS East Texas Fin. Serv. of TX........ NM 110.02 19.22 110.02 NM 0.20 0.89 28.17
ESBK Elmira Svgs Bank (The) of NY*...... 24.29 145.41 9.19 145.41 22.57 0.64 2.23 54.24
EMLD Emerald Financial Corp. of OH...... 18.18 230.13 18.48 233.30 19.13 0.28 1.27 23.14
EFBC Empire Federal Bancorp of MT....... 29.03 116.05 42.20 116.05 29.03 0.30 1.67 48.39
EFBI Enterprise Fed. Bancorp of OH...... 29.73 202.33 21.75 202.45 NM 1.00 3.03 NM
EQSB Equitable FSB of Wheaton MD........ 16.58 228.76 11.90 228.76 16.84 0.00 0.00 0.00
FCBF FCB Fin. Corp. of Neenah WI........ NM 171.54 23.82 171.54 NM 0.80 2.48 NM
FFDF FFD Financial Corp. of OH.......... 18.81 135.76 32.67 135.76 NM 0.30 1.44 27.03
FFLC FFLC Bancorp of Leesburg FL........ 19.75 143.74 18.48 143.74 20.79 0.36 1.82 36.00
FFFC FFVA Financial Corp. of VA(8)...... 27.32 220.72 30.23 225.00 23.04 0.60 1.57 42.86
FFWC FFW Corporation of Wabash IN....... 15.32 149.72 14.33 164.22 15.70 0.36 1.89 29.03
FFYF FFY Financial Corp. of OH.......... 18.00 167.46 22.76 167.46 18.29 0.80 2.33 41.88
FMCO FMS Financial Corp. of NJ.......... 14.85 219.94 14.27 223.19 14.98 0.28 0.81 11.97
FFHH FSF Financial Corp. of MN.......... 19.23 137.17 14.97 137.17 19.42 0.50 2.50 48.08
FOBC Fed One Bancorp of Wheeling WV(8).. 27.01 216.50 23.96 226.02 27.41 0.62 1.68 45.26
FBCI Fidelity Bancorp of Chicago IL..... NM 137.21 14.37 137.44 22.94 0.40 1.60 NM
FSBI Fidelity Bancorp, Inc. of PA....... 17.37 178.68 12.22 178.68 17.77 0.36 1.17 20.34
FFFL Fidelity Bcsh MHC of FL (47.7)..... NM 247.04 20.27 248.61 NM 0.90 2.88 NM
FFED Fidelity Fed. Bancorp of IN........ 16.75 186.85 13.59 186.85 18.04 0.40 4.26 71.43
FFOH Fidelity Financial of OH........... 20.69 156.66 18.81 177.69 21.43 0.32 1.78 36.78
FIBC Financial Bancorp, Inc. of NY...... 16.83 159.94 14.28 160.64 15.80 0.50 1.94 32.68
FBSI First Bancshares, Inc. of MO....... 19.48 157.42 22.67 157.42 20.43 0.10 0.60 11.63
FBBC First Bell Bancorp of PA........... 18.10 187.33 20.24 187.33 18.42 0.40 1.90 34.48
SKBO First Carnegie MHC of PA(45.0)..... NM 181.56 31.22 181.56 NM 0.30 1.54 73.17
FSTC First Citizens Corp of GA.......... 14.88 259.32 26.24 328.88 16.67 0.32 1.00 14.88
FCME First Coastal Corp. of ME*......... 14.78 126.15 12.76 126.15 18.33 0.00 0.00 0.00
FFBA First Colorado Bancorp of CO....... 24.10 228.43 30.74 233.11 25.17 0.52 1.83 44.07
FDEF First Defiance Fin.Corp. of OH..... 24.41 122.75 22.62 122.75 24.81 0.36 2.34 57.14
FESX First Essex Bancorp of MA*......... 19.09 203.89 15.50 231.92 21.42 0.56 2.27 43.41
FFSX First FSB MHC Sxld of IA(46.1)..... NM 249.30 22.08 251.23 NM 0.48 1.34 40.34
FFES First Fed of E. Hartford CT........ 19.42 161.55 11.01 161.55 17.54 0.68 1.70 33.01
BDJI First Fed. Bancorp. of MN.......... 27.40 165.02 16.80 165.02 27.40 0.00 0.00 0.00
FFBH First Fed. Bancshares of AR........ 23.23 157.75 23.49 157.75 24.31 0.28 1.07 24.78
FTFC First Fed. Capital Corp. of WI..... 16.67 264.71 18.75 280.00 21.14 0.48 1.52 25.40
FFKY First Fed. Fin. Corp. of KY........ 14.42 167.68 22.92 177.37 14.61 0.56 2.61 37.58
FFBZ First Federal Bancorp of OH........ 20.49 247.77 18.85 248.02 20.49 0.28 1.12 22.95
FFCH First Fin. Holdings Inc. of SC..... 23.96 302.99 19.51 302.99 24.53 0.84 1.62 38.89
FFHS First Franklin Corp. of OH......... 18.66 148.79 13.70 149.55 20.38 0.40 1.51 28.17
FGHC First Georgia Hold. Corp of GA..... 18.53 237.31 19.72 255.95 22.40 0.40 3.72 68.97
FSPG First Home Bancorp of NJ(8)........ 18.07 229.04 15.93 232.40 18.50 0.40 1.26 22.86
FFSL First Independence Corp. of KS..... 19.74 125.94 12.59 125.94 19.74 0.30 2.00 39.47
FISB First Indiana Corp. of IN.......... 19.29 223.51 21.20 226.13 23.89 0.48 1.78 34.29
FKFS First Keystone Fin. Corp of PA..... 15.18 163.78 10.84 163.78 16.83 0.20 1.18 17.86
FLKY First Lancaster Bncshrs of KY...... 28.55 101.41 28.91 101.41 28.55 0.50 3.30 NM
FLFC First Liberty Fin. Corp. of GA..... 27.64 272.22 20.65 299.30 26.77 0.44 1.29 35.77
CASH First Midwest Fin., Inc. of OH..... 16.70 139.60 15.11 156.50 17.88 0.48 2.10 35.04
FMBD First Mutual Bancorp Inc of IL..... NM 127.83 17.69 166.67 NM 0.32 1.62 NM
FMSB First Mutual SB of Bellevue WA*.... 17.22 245.63 16.69 245.63 17.55 0.20 1.10 18.87
FNGB First Northern Cap. Corp of WI..... 19.85 161.87 17.89 161.87 20.77 0.36 2.67 52.94
FFPB First Palm Beach Bancorp of FL..... 20.16 163.40 10.41 167.11 26.22 0.70 1.87 37.63
FSLA First SB SLA MHC of NJ (47.5)(8)... NM 349.72 33.90 NM NM 0.48 1.08 41.38
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
FWWB First Savings Bancorp of WA.......... 13.68 12.64 1.24 8.47 4.63 1.16 7.93 0.25 263.53 0.97
FSFF First SecurityFed Fin of IL.......... 27.03 27.03 1.29 4.77 3.94 1.29 4.77 0.78 85.16 0.98
SHEN First Shenango Bancorp of PA(8)...... 12.76 12.76 1.15 10.18 5.29 1.15 10.14 1.04 83.27 1.25
SOPN First Svgs Bancorp of NC............. 22.77 22.77 1.75 7.41 5.48 1.75 7.41 0.20 101.34 0.30
FBNW FirstBank Corp of Clarkston WA....... 16.18 16.18 0.59 4.73 2.41 0.30 2.37 0.64 90.64 0.74
FFDB FirstFed Bancorp, Inc. of AL......... 9.69 8.90 0.96 9.89 6.23 0.96 9.89 1.42 45.57 0.95
FSPT FirstSpartan Fin. Corp. of SC........ 26.40 26.40 1.16 6.68 3.02 1.16 6.68 0.47 82.73 0.48
FLAG Flag Financial Corp of GA............ 9.11 9.11 0.91 9.84 5.08 0.75 8.19 3.92 49.66 2.82
FLGS Flagstar Bancorp, Inc of MI.......... 5.98 5.74 1.41 28.47 7.10 0.70 14.24 3.04 8.02 0.27
FFIC Flushing Fin. Corp. of NY*........... 12.54 12.05 0.94 6.35 4.41 0.95 6.40 0.27 223.94 1.07
FBHC Fort Bend Holding Corp. of TX........ 6.77 6.35 0.78 12.28 6.80 0.57 9.06 0.47 114.18 1.02
FTSB Fort Thomas Fin. Corp. of KY......... 15.82 15.82 1.23 7.55 5.25 1.23 7.55 2.04 23.24 0.52
FKKY Frankfort First Bancorp of KY........ 16.97 16.97 0.17 0.84 0.84 0.73 3.55 0.10 71.94 0.08
FTNB Fulton Bancorp, Inc. of MO........... 23.97 23.97 1.26 5.11 3.43 1.01 4.08 1.05 86.26 1.10
GFSB GFS Bancorp of Grinnell IA(8)........ 11.83 11.83 1.29 11.12 6.60 1.22 10.56 1.55 44.35 0.81
GUPB GFSB Bancorp, Inc of Gallup NM....... 12.50 12.50 0.89 6.08 4.91 0.89 6.08 0.24 132.26 0.58
GSLA GS Financial Corp. of LA............. 42.66 42.66 1.38 3.88 2.38 1.36 3.80 0.13 246.99 0.76
GOSB GSB Financial Corp. of NY*........... 28.44 28.44 0.63 3.39 1.98 0.58 3.09 0.10 137.39 0.23
GFCO Glenway Financial Corp. of OH........ 9.29 9.20 0.83 8.74 5.25 0.83 8.74 0.06 542.78 0.38
GTPS Great American Bancorp of IL......... 19.93 19.93 0.63 2.98 2.48 0.63 2.98 0.28 126.79 0.44
PEDE Great Pee Dee Bancorp of SC.......... 37.86 37.86 1.57 4.15 3.56 1.57 4.15 0.45 97.55 0.57
GSBC Great Southern Bancorp of MO......... 8.74 8.67 1.89 21.59 6.45 1.75 19.90 1.84 114.98 2.48
GDVS Greater DV SB,MHC of PA (19.9)....... 11.20 11.20 0.83 7.17 1.95 0.83 7.17 1.52 38.83 1.00
GSFC Green Street Fin. Corp. of NC........ 35.23 35.23 1.61 4.50 3.69 1.61 4.50 0.07 197.67 0.20
GFED Guaranty Fed Bancshares of MO........ 30.17 30.17 1.00 5.76 2.61 0.97 5.58 0.61 154.73 1.24
HCBB HCB Bancshares of Camden AR.......... 18.65 17.99 0.30 2.05 1.50 0.30 2.05 0.23 316.88 1.42
HEMT HF Bancorp of Hemet CA............... 7.87 6.62 0.04 0.46 0.35 0.22 2.69 1.38 27.21 0.67
HFFC HF Financial Corp. of SD............. 9.58 9.58 1.08 11.49 6.95 1.00 10.65 0.36 241.11 1.14
HFNC HFNC Financial Corp. of NC........... 18.24 18.24 1.23 6.02 4.67 0.93 4.58 0.79 100.96 0.98
HMNF HMN Financial, Inc. of MN............ 12.22 11.34 0.95 6.79 4.50 0.76 5.39 0.12 340.52 0.61
HALL Hallmark Capital Corp. of WI......... 7.62 7.62 0.67 9.29 6.06 0.66 9.09 0.11 471.85 0.71
HARB Harbor FL Bncp MHC of FL (46.1(8).... 8.93 8.66 1.29 15.26 3.81 1.24 14.68 0.51 197.92 1.31
HRBF Harbor Federal Bancorp of MD......... 12.49 12.49 0.74 5.73 3.87 0.70 5.49 0.53 37.43 0.31
HFSA Hardin Bancorp of Hardin MO.......... 11.34 11.34 0.75 6.03 5.24 0.69 5.48 0.19 106.88 0.39
HARL Harleysville SB of PA................ 6.81 6.81 1.02 15.58 6.81 1.02 15.66 NA NA 0.78
HFGI Harrington Fin. Group of IN.......... 4.47 4.47 0.19 3.96 2.70 0.20 4.22 0.18 21.99 0.19
HARS Harris Fin. MHC of PA (24.3)......... 8.12 7.24 0.89 10.88 2.14 0.76 9.24 0.62 63.10 0.94
HFFB Harrodsburg 1st Fin Bcrp of KY....... 26.73 26.73 1.35 5.05 4.47 1.35 5.05 0.45 70.72 0.41
HHFC Harvest Home Fin. Corp. of OH........ 11.02 11.02 0.83 6.96 5.31 0.73 6.09 0.03 393.33 0.27
HAVN Haven Bancorp of Woodhaven NY........ 5.72 5.70 0.62 10.47 5.12 0.63 10.56 0.66 96.47 1.09
HTHR Hawthorne Fin. Corp. of CA........... 4.56 4.56 0.89 19.31 12.96 1.07 23.14 NA NA 1.56
HMLK Hemlock Fed. Fin. Corp. of IL........ 17.22 17.22 0.57 3.47 2.40 0.98 5.93 0.15 301.56 1.01
HFWA Heritage Financial Corp of WA........ 29.23 29.23 1.53 5.25 3.24 1.53 5.25 0.10 817.44 1.30
HCBC High Country Bancorp of CO........... 20.47 20.47 0.76 5.23 3.03 0.76 5.23 0.42 177.96 0.93
HBNK Highland Bancorp of CA............... 7.55 7.55 1.20 16.15 7.23 0.93 12.42 1.94 82.92 2.03
HIFS Hingham Inst. for Sav. of MA*........ 9.60 9.60 1.25 13.09 6.00 1.25 13.09 0.77 91.33 0.89
HBEI Home Bancorp of Elgin IL............. 27.01 27.01 0.80 2.90 2.33 0.80 2.90 0.35 85.19 0.35
HBFW Home Bancorp of Fort Wayne IN........ 12.16 12.16 0.86 6.55 3.33 0.86 6.49 0.09 464.55 0.47
HCFC Home City Fin. Corp. of OH........... 19.48 19.48 1.27 6.33 5.26 1.29 6.39 0.36 174.52 0.72
HOMF Home Fed Bancorp of Seymour IN....... 8.80 8.55 1.38 16.20 6.03 1.22 14.26 0.55 101.25 0.67
HWEN Home Financial Bancorp of IN......... 16.98 16.98 0.81 4.51 3.89 0.59 3.26 1.63 38.73 0.79
HPBC Home Port Bancorp, Inc. of MA*....... 10.52 10.52 1.67 15.70 6.88 1.63 15.35 NA NA 1.47
HFBC HopFed Bancorp of KY................. 22.59 22.59 0.99 4.37 3.36 0.99 4.37 0.12 93.93 0.23
HZFS Horizon Fin'l. Services of IA........ 10.17 10.17 0.85 8.33 5.11 0.68 6.63 0.96 44.55 0.67
HRZB Horizon Financial Corp. of WA*....... 15.92 15.92 1.56 10.02 5.77 1.55 9.93 NA NA 0.84
IBSF IBS Financial Corp. of NJ............ 17.73 17.73 0.79 4.51 2.50 0.79 4.51 0.11 130.18 0.49
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
FWWB First Savings Bancorp of WA............ 21.60 182.43 24.96 197.51 23.08 0.36 1.33 28.80
FSFF First SecurityFed Fin of IL............ 25.41 121.09 32.73 121.09 25.41 0.00 0.00 0.00
SHEN First Shenango Bancorp of PA(8)........ 18.89 181.32 23.14 181.32 18.98 0.60 1.43 27.03
SOPN First Svgs Bancorp of NC............... 18.24 133.06 30.30 133.06 18.24 1.00 4.06 74.07
FBNW FirstBank Corp of Clarkston WA......... NM 132.98 21.52 132.98 NM 0.28 1.41 58.33
FFDB FirstFed Bancorp, Inc. of AL........... 16.05 158.33 15.34 172.48 16.05 0.50 2.11 33.78
FSPT FirstSpartan Fin. Corp. of SC.......... NM 149.05 39.35 149.05 NM 0.60 1.36 45.11
FLAG Flag Financial Corp of GA.............. 19.68 186.49 16.98 186.49 23.67 0.34 1.71 33.66
FLGS Flagstar Bancorp, Inc of MI............ 14.08 262.99 15.72 273.77 28.17 0.24 1.03 14.46
FFIC Flushing Fin. Corp. of NY*............. 22.69 141.21 17.70 146.97 22.48 0.32 1.31 29.63
FBHC Fort Bend Holding Corp. of TX.......... 14.72 168.84 11.43 180.12 19.95 0.40 1.93 28.37
FTSB Fort Thomas Fin. Corp. of KY........... 19.06 142.26 22.51 142.26 19.06 0.25 1.64 31.25
FKKY Frankfort First Bancorp of KY.......... NM 120.33 20.42 120.33 28.39 0.80 4.78 NM
FTNB Fulton Bancorp, Inc. of MO............. 29.17 145.29 34.83 145.29 NM 0.24 1.10 32.00
GFSB GFS Bancorp of Grinnell IA(8).......... 15.15 159.22 18.83 159.22 15.96 0.26 1.45 22.03
GUPB GFSB Bancorp, Inc of Gallup NM......... 20.37 122.91 15.36 122.91 20.37 0.40 1.82 37.04
GSLA GS Financial Corp. of LA............... NM 126.56 53.99 126.56 NM 0.28 1.36 57.14
GOSB GSB Financial Corp. of NY*............. NM 116.85 33.23 116.85 NM 0.00 0.00 0.00
GFCO Glenway Financial Corp. of OH.......... 19.05 161.16 14.98 162.87 19.05 0.40 2.00 38.10
GTPS Great American Bancorp of IL........... NM 124.11 24.73 124.11 NM 0.40 1.90 NM
PEDE Great Pee Dee Bancorp of SC............ 28.13 116.58 44.14 116.58 28.13 0.00 0.00 0.00
GSBC Great Southern Bancorp of MO........... 15.51 316.73 27.68 319.08 16.83 0.44 1.71 26.51
GDVS Greater DV SB,MHC of PA (19.9)......... NM NM 39.90 NM NM 0.36 1.13 58.06
GSFC Green Street Fin. Corp. of NC.......... 27.09 121.38 42.76 121.38 27.09 0.44 2.46 66.67
GFED Guaranty Fed Bancshares of MO.......... NM 112.97 34.08 112.97 NM 0.30 2.38 NM
HCBB HCB Bancshares of Camden AR............ NM 101.66 18.96 105.38 NM 0.20 1.36 NM
HEMT HF Bancorp of Hemet CA................. NM 127.92 10.06 152.06 NM 0.00 0.00 0.00
HFFC HF Financial Corp. of SD............... 14.39 157.92 15.12 157.92 15.53 0.42 1.42 20.49
HFNC HFNC Financial Corp. of NC............. 21.43 139.75 25.49 139.75 28.13 0.32 2.37 50.79
HMNF HMN Financial, Inc. of MN.............. 22.22 147.20 17.99 158.56 28.04 0.00 0.00 0.00
HALL Hallmark Capital Corp. of WI........... 16.49 144.32 11.00 144.32 16.85 0.00 0.00 0.00
HARB Harbor FL Bncp MHC of FL (46.1(8)...... 26.22 NM 33.30 NM 27.26 1.40 1.85 48.61
HRBF Harbor Federal Bancorp of MD........... 25.84 143.99 17.98 143.99 26.97 0.48 1.93 50.00
HFSA Hardin Bancorp of Hardin MO............ 19.07 118.82 13.48 118.82 20.98 0.52 2.75 52.53
HARL Harleysville SB of PA.................. 14.68 212.58 14.49 212.58 14.61 0.44 1.45 21.36
HFGI Harrington Fin. Group of IN............ NM 148.40 6.63 148.40 NM 0.12 1.08 40.00
HARS Harris Fin. MHC of PA (24.3)........... NM NM 37.99 NM NM 0.22 0.89 41.51
HFFB Harrodsburg 1st Fin Bcrp of KY......... 22.38 112.96 30.20 112.96 22.38 0.40 2.42 54.05
HHFC Harvest Home Fin. Corp. of OH.......... 18.83 129.72 14.30 129.72 21.51 0.44 2.92 55.00
HAVN Haven Bancorp of Woodhaven NY.......... 19.55 191.67 10.96 192.27 19.39 0.30 1.22 23.81
HTHR Hawthorne Fin. Corp. of CA............. 7.71 142.00 6.47 142.00 6.44 0.00 0.00 0.00
HMLK Hemlock Fed. Fin. Corp. of IL.......... NM 127.90 22.03 127.90 24.35 0.28 1.49 62.22
HFWA Heritage Financial Corp of WA.......... NM 161.99 47.36 161.99 NM 0.00 0.00 0.00
HCBC High Country Bancorp of CO............. NM 114.99 23.53 114.99 NM 0.00 0.00 0.00
HBNK Highland Bancorp of CA................. 13.83 203.80 15.39 203.80 17.98 0.00 0.00 0.00
HIFS Hingham Inst. for Sav. of MA*.......... 16.67 207.44 19.92 207.44 16.67 0.48 1.41 23.53
HBEI Home Bancorp of Elgin IL............... NM 126.93 34.28 126.93 NM 0.40 2.27 NM
HBFW Home Bancorp of Fort Wayne IN.......... NM 205.33 24.96 205.33 NM 0.20 0.55 16.39
HCFC Home City Fin. Corp. of OH............. 19.01 120.43 23.46 120.43 18.82 0.00 0.00 0.00
HOMF Home Fed Bancorp of Seymour IN......... 16.58 249.80 21.98 256.95 18.83 0.40 1.31 21.74
HWEN Home Financial Bancorp of IN........... 25.69 116.35 19.75 116.35 NM 0.10 1.08 27.78
HPBC Home Port Bancorp, Inc. of MA*......... 14.53 218.12 22.94 218.12 14.86 0.80 3.08 44.69
HFBC HopFed Bancorp of KY................... 29.74 130.09 29.39 130.09 29.74 0.00 0.00 0.00
HZFS Horizon Fin'l. Services of IA.......... 19.58 153.59 15.61 153.59 24.62 0.18 1.11 21.69
HRZB Horizon Financial Corp. of WA*......... 17.32 165.91 26.42 165.91 17.48 0.44 2.33 40.37
IBSF IBS Financial Corp. of NJ.............. NM 179.58 31.85 179.58 NM 0.40 1.89 NM
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang.
Reported Earnings Core Earnings
Equity/ Equity/ ----------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
ITLA ITLA Capital Corp of CA*............. 10.72 10.68 1.46 13.06 7.15 1.46 13.06 NA NA 1.50
IFSB Independence FSB of DC............... 7.25 6.45 0.54 8.04 6.18 0.22 3.32 NA NA 0.39
INCB Indiana Comm. Bank, SB of IN(8)...... 12.15 12.15 0.52 4.28 2.51 0.52 4.28 NA NA 0.94
INBI Industrial Bancorp of OH............. 16.72 16.72 1.48 8.31 4.55 1.48 8.31 0.31 155.81 0.54
IWBK Interwest Bancorp of WA.............. 6.73 6.62 1.10 16.46 6.07 0.96 14.33 0.69 62.65 0.74
IPSW Ipswich SB of Ipswich MA*............ 5.21 5.21 1.18 20.53 6.64 0.96 16.78 0.95 77.31 0.96
JXVL Jacksonville Bancorp of TX........... 14.63 14.63 1.49 9.87 6.86 1.49 9.87 0.70 70.27 0.66
JXSB Jcksnville SB, MHC of IL (45.6)...... 10.41 10.41 0.61 5.69 2.19 0.49 4.57 0.94 42.01 0.51
JSBA Jefferson Svgs Bancorp of MO......... 9.03 7.08 0.79 9.68 3.59 0.77 9.38 0.67 101.16 0.89
JOAC Joachim Bancorp, Inc. of MO(8)....... 28.92 28.92 0.76 2.64 2.28 0.76 2.64 0.25 89.29 0.30
KSBK KSB Bancorp of Kingfield ME*......... 7.36 7.00 1.07 14.93 6.59 1.07 14.93 NA NA 1.12
KFBI Klamath First Bancorp of OR.......... 15.07 13.77 1.09 6.06 3.83 1.09 6.06 0.02 932.65 0.24
LSBI LSB Fin. Corp. of Lafayette IN....... 8.58 8.58 0.80 9.10 5.61 0.72 8.20 1.01 70.58 0.82
LVSB Lakeview Financial of NJ............. 9.65 7.92 1.44 13.78 7.20 0.90 8.63 1.27 57.56 1.42
LARK Landmark Bancshares, Inc of KS....... 14.09 14.09 1.09 7.61 6.21 0.98 6.88 0.30 151.09 0.62
LARL Laurel Capital Group of PA........... 10.57 10.57 1.39 13.35 6.20 1.40 13.45 0.42 203.92 1.22
LSBX Lawrence Savings Bank of MA*......... 10.45 10.45 2.30 25.00 10.01 2.28 24.74 0.52 168.85 1.91
LFED Leeds FSB, MHC of MD (36.3).......... 16.63 16.63 1.20 7.33 2.93 1.20 7.33 0.04 453.33 0.30
LXMO Lexington B&L Fin. Corp. of MO....... 18.33 17.19 1.10 4.29 3.91 1.10 4.29 0.54 119.11 0.94
LFCO Life Financial Corp of CA(8)......... 13.30 13.30 5.46 38.04 9.95 5.71 39.80 1.59 39.19 0.80
LFBI Little Falls Bancorp of NJ........... 11.68 10.77 0.57 4.32 3.27 0.52 3.93 0.90 38.49 0.77
LOGN Logansport Fin. Corp. of IN.......... 19.21 19.21 1.50 7.75 5.60 1.55 7.99 0.62 45.62 0.38
LISB Long Island Bancorp, Inc of NY....... 9.18 9.09 0.86 9.44 3.26 0.71 7.79 0.89 62.67 0.91
MAFB MAF Bancorp, Inc. of IL.............. 7.62 6.71 1.14 14.72 6.49 1.12 14.49 0.32 138.86 0.57
MBLF MBLA Financial Corp. of MO........... 12.68 12.68 0.81 6.31 5.13 0.82 6.40 0.48 62.09 0.51
MECH MECH Financial Inc of CT*............ 9.92 9.92 1.60 15.91 8.52 1.58 15.72 0.58 270.14 2.39
MFBC MFB Corp. of Mishawaka IN............ 12.70 12.70 0.83 6.00 4.76 0.82 5.96 0.09 162.45 0.18
MSBF MSB Financial, Inc of MI............. 16.87 16.87 1.52 8.83 5.35 1.40 8.15 0.84 51.31 0.46
MARN Marion Capital Holdings of IN........ 20.78 20.33 1.57 7.09 5.64 1.57 7.09 1.43 74.17 1.30
MRKF Market Fin. Corp. of OH.............. 35.57 35.57 1.06 3.30 2.52 1.06 3.30 0.34 26.94 0.18
MFSL Maryland Fed. Bancorp of MD(8)....... 8.48 8.39 0.65 7.77 3.01 0.91 10.97 0.60 65.66 0.47
MASB MassBank Corp. of Reading MA*........ 11.21 11.06 1.12 10.54 5.59 1.03 9.73 0.19 131.79 0.86
MFLR Mayflower Co-Op. Bank of MA*......... 9.75 9.61 1.11 11.52 5.78 1.05 10.93 0.69 124.95 1.49
MDBK Medford Bancorp, Inc. of MA*......... 8.94 8.41 1.05 11.80 5.84 1.02 11.38 0.16 379.54 1.17
MERI Meritrust FSB of Thibodaux LA(8)..... 8.49 8.49 1.18 14.53 4.45 1.18 14.53 0.35 62.38 0.41
MWBX MetroWest Bank of MA*................ 7.34 7.34 1.34 18.12 6.85 1.32 17.79 1.03 130.81 1.78
METF Metropolitan Fin. Corp. of OH........ 3.96 3.64 0.69 17.52 4.93 0.65 16.45 0.56 108.45 0.79
MIFC Mid Iowa Financial Corp. of IA....... 9.36 9.35 1.21 12.97 7.34 1.33 14.29 0.21 105.32 0.41
MCBM Mid-Coast Bancorp of ME.............. 8.34 8.34 0.76 8.86 5.05 0.71 8.30 1.09 48.53 0.66
MWBI Midwest Bancshares, Inc. of IA....... 7.23 7.23 0.88 12.56 7.75 0.78 11.14 0.73 52.45 0.62
MWFD Midwest Fed. Fin. Corp of WI(8)...... 9.00 8.70 1.45 16.68 5.85 1.14 13.16 0.09 879.14 1.02
MFFC Milton Fed. Fin. Corp. of OH......... 11.84 11.84 0.65 4.81 3.47 0.62 4.64 0.26 83.77 0.35
MBSP Mitchell Bancorp, Inc. of NC......... 40.12 40.12 1.52 3.59 3.29 1.52 3.59 1.77 29.42 0.64
MBBC Monterey Bay Bancorp of CA........... 11.75 10.95 0.43 3.81 2.50 0.39 3.47 0.65 62.58 0.63
MONT Montgomery Fin. Corp. of IN.......... 18.60 18.60 0.72 4.29 3.35 0.72 4.29 0.78 22.34 0.19
MSBK Mutual SB, FSB of Bay City MI........ 5.09 5.09 -1.39 -23.41 -16.46 -0.49 -8.21 0.07 434.66 0.62
MYST Mystic Financial of MA*.............. 19.47 19.47 0.78 4.00 2.91 0.78 4.00 0.18 315.24 0.91
NHTB NH Thrift Bancshares of NH........... 8.04 6.95 0.91 11.84 6.45 0.74 9.62 0.66 146.88 1.18
NSLB NS&L Bancorp, Inc of Neosho MO....... 19.74 19.59 0.72 3.62 3.54 0.71 3.56 0.23 36.57 0.14
NSSY NSS Bancorp of CT*................... 8.14 7.90 1.05 13.40 6.47 1.19 15.20 1.31 73.30 1.46
NMSB Newmil Bancorp, Inc. of CT*.......... 9.32 9.32 0.85 8.52 5.12 0.86 8.64 0.90 172.67 3.24
NASB North American SB, FSB of MO......... 8.49 8.24 1.67 21.16 7.83 1.35 17.20 3.07 27.86 0.99
NBSI North Bancshares of Chicago IL....... 13.49 13.49 0.52 3.69 2.51 0.50 3.52 NA NA 0.26
FFFD North Central Bancshares of IA....... 22.92 22.92 1.83 7.49 5.17 1.83 7.49 NA NA 1.11
NEIB Northeast Indiana Bncrp of IN........ 14.37 14.37 1.20 7.72 5.58 1.20 7.72 0.17 350.00 0.67
NWEQ Northwest Equity Corp. of WI......... 11.60 11.60 1.06 9.03 5.64 1.01 8.66 1.35 35.37 0.58
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
ITLA ITLA Capital Corp of CA*................ 13.98 173.05 18.55 173.75 13.98 0.00 0.00 0.00
IFSB Independence FSB of DC.................. 16.17 123.89 8.98 139.15 NM 0.25 1.42 22.94
INCB Indiana Comm. Bank, SB of IN(8)......... NM 168.10 20.43 168.10 NM 0.36 1.70 67.92
INBI Industrial Bancorp of OH................ 22.00 184.41 30.84 184.41 22.00 0.56 2.55 56.00
IWBK Interwest Bancorp of WA................. 16.47 253.01 17.03 257.35 18.92 0.76 1.81 29.80
IPSW Ipswich SB of Ipswich MA*............... 15.05 282.26 14.69 282.26 18.42 0.16 1.14 17.20
JXVL Jacksonville Bancorp of TX.............. 14.59 142.87 20.90 142.87 14.59 0.50 2.48 36.23
JXSB Jcksnville SB, MHC of IL (45.6)......... NM 253.54 26.40 253.54 NM 0.30 1.29 58.82
JSBA Jefferson Svgs Bancorp of MO............ 27.84 238.10 21.50 303.71 28.72 0.28 1.04 28.87
JOAC Joachim Bancorp, Inc. of MO(8).......... NM 118.53 34.28 118.53 NM 0.50 3.08 NM
KSBK KSB Bancorp of Kingfield ME*............ 15.16 208.10 15.32 218.93 15.16 0.10 0.54 8.20
KFBI Klamath First Bancorp of OR............. 26.14 156.36 23.57 171.13 26.14 0.34 1.48 38.64
LSBI LSB Fin. Corp. of Lafayette IN.......... 17.84 157.54 13.52 157.54 19.81 0.40 1.31 23.39
LVSB Lakeview Financial of NJ................ 13.89 215.15 20.76 262.24 22.18 0.13 0.51 7.14
LARK Landmark Bancshares, Inc of KS.......... 16.10 120.57 16.99 120.57 17.80 0.40 1.70 27.40
LARL Laurel Capital Group of PA.............. 16.14 208.58 22.05 208.58 16.02 0.35 1.62 26.12
LSBX Lawrence Savings Bank of MA*............ 9.99 215.28 22.50 215.28 10.10 0.00 0.00 0.00
LFED Leeds FSB, MHC of MD (36.3)............. NM 240.64 40.01 240.64 NM 0.56 2.49 NM
LXMO Lexington B&L Fin. Corp. of MO.......... 25.58 109.99 20.16 117.28 25.58 0.30 1.80 46.15
LFCO Life Financial Corp of CA(8)............ 10.05 232.97 31.00 232.97 9.61 0.00 0.00 0.00
LFBI Little Falls Bancorp of NJ.............. NM 138.95 16.23 150.67 NM 0.20 0.99 30.30
LOGN Logansport Fin. Corp. of IN............. 17.86 133.38 25.63 133.38 17.33 0.40 2.29 40.82
LISB Long Island Bancorp, Inc of NY.......... NM 279.22 25.62 281.77 NM 0.60 0.93 28.44
MAFB MAF Bancorp, Inc. of IL................. 15.42 222.22 16.93 252.26 15.66 0.28 0.72 11.07
MBLF MBLA Financial Corp. of MO.............. 19.50 123.21 15.62 123.21 19.23 0.40 1.45 28.37
MECH MECH Financial Inc of CT*............... 11.74 173.34 17.20 173.34 11.89 0.00 0.00 0.00
MFBC MFB Corp. of Mishawaka IN............... 21.00 127.37 16.17 127.37 21.17 0.34 1.30 27.20
MSBF MSB Financial, Inc of MI................ 18.68 160.98 27.15 160.98 20.24 0.30 1.76 32.97
MARN Marion Capital Holdings of IN........... 17.72 125.17 26.01 127.91 17.72 0.88 3.14 55.70
MRKF Market Fin. Corp. of OH................. NM 112.76 40.10 112.76 NM 0.28 1.64 65.12
MFSL Maryland Fed. Bancorp of MD(8).......... NM 246.13 20.88 248.88 23.53 0.45 1.19 39.47
MASB MassBank Corp. of Reading MA*........... 17.89 175.50 19.68 178.01 19.39 1.00 1.96 35.09
MFLR Mayflower Co-Op. Bank of MA*............ 17.31 188.68 18.40 191.49 18.24 0.80 2.96 51.28
MDBK Medford Bancorp, Inc. of MA*............ 17.13 192.39 17.20 204.37 17.77 0.80 1.86 31.87
MERI Meritrust FSB of Thibodaux LA(8)........ 22.49 307.64 26.13 307.64 22.49 0.70 0.89 19.94
MWBX MetroWest Bank of MA*................... 14.59 248.58 18.26 248.58 14.87 0.12 1.52 22.22
METF Metropolitan Fin. Corp. of OH........... 20.28 319.81 12.68 347.91 21.60 0.00 0.00 0.00
MIFC Mid Iowa Financial Corp. of IA.......... 13.63 163.70 15.33 163.92 12.38 0.08 0.66 8.99
MCBM Mid-Coast Bancorp of ME................. 19.79 172.49 14.38 172.49 21.11 0.52 1.37 27.08
MWBI Midwest Bancshares, Inc. of IA.......... 12.90 152.96 11.06 152.96 14.55 0.24 1.50 19.35
MWFD Midwest Fed. Fin. Corp of WI(8)......... 17.08 262.82 23.65 271.88 21.65 0.34 1.11 18.89
MFFC Milton Fed. Fin. Corp. of OH............ 28.80 141.12 16.71 141.12 29.87 0.60 3.72 NM
MBSP Mitchell Bancorp, Inc. of NC............ NM 109.25 43.84 109.25 NM 0.40 2.35 71.43
MBBC Monterey Bay Bancorp of CA.............. NM 148.25 17.41 158.96 NM 0.14 0.64 25.45
MONT Montgomery Fin. Corp. of IN............. 29.84 110.43 20.54 110.43 29.84 0.22 1.68 50.00
MSBK Mutual SB, FSB of Bay City MI........... NM 169.71 8.63 169.71 NM 0.00 0.00 NM
MYST Mystic Financial of MA*................. NM 137.54 26.78 137.54 NM 0.00 0.00 0.00
NHTB NH Thrift Bancshares of NH.............. 15.51 168.55 13.55 194.81 19.10 0.60 2.91 45.11
NSLB NS&L Bancorp, Inc of Neosho MO.......... 28.23 105.17 20.76 106.00 28.69 0.50 2.86 NM
NSSY NSS Bancorp of CT*...................... 15.45 189.55 15.42 195.28 13.62 0.40 0.94 14.49
NMSB Newmil Bancorp, Inc. of CT*............. 19.55 162.53 15.14 162.53 19.28 0.32 2.31 45.07
NASB North American SB, FSB of MO............ 12.78 247.93 21.05 255.46 15.72 1.00 1.45 18.52
NBSI North Bancshares of Chicago IL.......... NM 150.86 20.35 150.86 NM 0.40 2.29 NM
FFFD North Central Bancshares of IA.......... 19.34 148.61 34.07 148.61 19.34 0.32 1.43 27.59
NEIB Northeast Indiana Bncrp of IN........... 17.91 136.23 19.57 136.23 17.91 0.34 1.61 28.81
NWEQ Northwest Equity Corp. of WI............ 17.73 157.08 18.23 157.08 18.49 0.60 2.77 49.18
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ----------------------- --------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
NWSB Northwest SB, MHC of PA (30.7)....... 9.24 8.20 0.93 9.65 2.41 0.95 9.88 0.72 86.28 0.85
NTMG Nutmeg FS&LA of CT................... 5.51 5.51 0.68 12.20 6.16 0.43 7.83 1.57 30.83 0.55
OHSL OHSL Financial Corp. of OH........... 10.90 10.90 0.87 7.88 4.80 0.84 7.54 0.30 73.10 0.31
OCFC Ocean Fin. Corp. of NJ............... 14.27 14.27 0.98 5.94 4.87 0.97 5.91 0.45 97.91 0.84
OTFC Oregon Trail Fin. Corp. of OR........ 12.49 12.49 0.93 8.04 3.43 0.94 8.16 0.18 180.70 0.55
OFCP Ottawa Financial Corp. of MI......... 8.62 7.01 0.87 9.92 4.85 0.83 9.43 0.34 109.69 0.44
PFFB PFF Bancorp of Pomona CA............. 9.71 9.61 0.54 5.26 3.86 0.52 4.99 1.40 67.00 1.38
PSFI PS Financial of Chicago IL........... 37.32 37.32 1.96 6.07 5.10 1.99 6.15 0.68 31.79 0.52
PVFC PVF Capital Corp. of OH.............. 7.28 7.28 1.36 19.21 7.92 1.28 18.10 1.06 65.77 0.75
PBCI Pamrapo Bancorp, Inc. of NJ.......... 12.88 12.80 1.37 10.35 6.41 1.31 9.89 2.20 29.81 1.16
PFED Park Bancorp of Chicago IL........... 21.82 21.82 0.87 3.86 3.52 0.94 4.15 0.23 125.00 0.73
PVSA Parkvale Financial Corp of PA........ 7.91 7.87 1.07 14.01 6.62 1.07 14.01 0.36 397.79 1.88
PBHC Pathfinder BC MHC of NY (46.1)*...... 11.98 10.15 0.96 8.24 2.88 0.87 7.46 1.17 36.05 0.68
PEEK Peekskill Fin. Corp. of NY........... 25.24 25.24 1.09 4.23 3.79 1.09 4.23 0.90 39.49 1.34
PFSB PennFed Fin. Services of NJ.......... 6.96 5.96 0.81 11.02 6.00 0.80 10.92 0.58 33.00 0.28
PWBC PennFirst Bancorp of PA.............. 7.52 6.70 0.69 8.90 5.33 0.69 8.90 0.45 117.30 1.41
PWBK Pennwood Bancorp, Inc. of PA......... 17.99 17.99 0.95 5.12 4.43 1.10 5.92 1.49 34.66 0.80
PBKB People's Bancshares of MA*........... 4.10 3.93 0.83 15.42 5.54 0.43 7.92 0.57 98.78 1.04
PFDC Peoples Bancorp of Auburn IN......... 15.27 15.27 1.49 9.76 5.60 1.49 9.76 0.30 102.04 0.37
PBCT Peoples Bank, MHC of CT (40.1)*...... 8.68 8.63 1.18 13.88 3.90 0.68 8.00 0.68 153.86 1.57
TSBS Peoples Bcrp, MHC of NJ (35.9)(8)*... 17.18 15.52 1.18 6.97 1.83 0.88 5.18 0.78 68.34 0.85
PFFC Peoples Fin. Corp. of OH............. 18.85 18.85 0.96 5.10 3.37 0.95 5.01 0.04 480.65 0.25
PHBK Peoples Heritage Fin Grp of ME*...... 6.99 5.25 1.25 16.39 5.67 1.24 16.20 0.88 114.30 1.40
PSFC Peoples Sidney Fin. Corp of OH....... 24.73 24.73 1.15 5.90 3.56 1.15 5.90 1.13 34.69 0.45
PERM Permanent Bancorp, Inc. of IN........ 10.00 9.88 0.62 6.51 3.47 0.61 6.46 0.70 70.95 0.97
PMFI Perpetual Midwest Fin. of IA(8)...... 8.92 8.92 0.49 5.66 3.47 0.44 5.05 0.39 193.33 0.86
PERT Perpetual of SC, MHC (46.8)(8)....... 11.91 11.91 0.80 6.41 1.93 0.89 7.07 NA NA 1.02
PCBC Perry Co. Fin. Corp. of MO........... 19.23 19.23 1.08 5.70 4.60 1.08 5.70 0.01 277.78 0.17
PHFC Pittsburgh Home Fin Corp of PA....... 8.23 8.13 0.82 7.69 5.98 0.70 6.61 1.68 28.88 0.76
PFSL Pocahnts Fed, MHC of AR (47.0)(8).... 6.36 6.36 0.62 9.84 3.16 0.61 9.71 0.23 194.26 1.02
PTRS Potters Financial Corp of OH......... 8.97 8.97 1.00 11.18 6.56 0.99 11.00 0.17 NA 2.54
PKPS Poughkeepsie Fin. Corp. of NY(8)..... 8.30 8.30 0.27 3.28 1.67 0.35 4.15 4.03 26.72 1.40
PHSB Ppls Home SB, MHC of PA (45.0)....... 13.14 13.14 0.77 7.20 2.99 0.73 6.83 0.44 146.58 1.38
PRBC Prestige Bancorp of PA............... 10.91 10.91 0.60 5.15 4.47 0.58 5.03 0.43 65.96 0.42
PFNC Progress Financial Corp. of PA....... 5.09 4.27 0.90 17.37 5.17 0.69 13.16 1.05 63.33 1.00
PSBK Progressive Bank, Inc. of NY(8)*..... 8.88 8.05 0.98 11.44 5.17 0.96 11.19 0.74 150.14 1.71
PROV Provident Fin. Holdings of CA........ 11.58 11.58 0.77 5.71 4.29 0.41 3.02 1.49 56.25 0.96
PULB Pulaski SB, MHC of MO (29.8)(8)...... 13.30 13.30 1.21 9.32 2.05 1.06 8.14 NA NA 0.46
PLSK Pulaski SB, MHC of NJ (46.0)......... 11.94 11.94 0.63 6.25 2.65 0.63 6.25 0.53 95.10 0.89
PULS Pulse Bancorp of S. River NJ......... 8.19 8.19 1.09 13.66 6.95 1.11 13.81 0.98 43.79 1.67
QCFB QCF Bancorp of Virginia MN........... 16.45 16.45 1.65 9.37 6.41 1.65 9.37 0.39 214.67 1.95
QCBC Quaker City Bancorp of CA............ 8.63 8.63 0.73 8.41 5.61 0.70 8.08 1.33 70.08 1.18
QCSB Queens County Bancorp of NY*......... 10.63 10.63 1.58 12.45 3.70 1.56 12.29 0.54 108.40 0.67
RARB Raritan Bancorp of Raritan NJ*....... 7.56 7.45 1.01 13.22 6.23 0.99 12.98 0.23 349.74 1.23
REDF RedFed Bancorp of Redlands CA(8)..... 8.35 8.32 1.11 13.41 7.24 1.14 13.78 1.69 45.34 0.86
RELY Reliance Bancorp, Inc. of NY......... 8.56 5.82 0.90 10.87 5.05 0.94 11.39 0.56 69.33 0.88
RELI Reliance Bancshares Inc of WI........ 50.09 50.09 1.06 2.16 2.14 1.11 2.27 NA NA 0.57
RCBK Richmond County Fin Corp of NY*...... 25.65 25.65 1.22 4.75 3.12 1.22 4.75 NA NA 1.12
RIVR River Valley Bancorp of IN........... 12.72 12.54 0.84 7.18 4.67 0.70 5.99 0.71 122.47 1.05
RVSB Riverview Bancorp of WA.............. 22.73 21.94 1.35 8.56 3.18 1.33 8.40 0.17 218.00 0.58
RSLN Roslyn Bancorp, Inc. of NY*.......... 17.45 17.37 1.03 5.39 3.26 1.25 6.58 0.18 362.05 2.42
SCCB S. Carolina Comm. Bnshrs of SC....... 20.69 20.69 1.00 4.02 3.57 1.00 4.02 1.53 42.40 0.81
SBFL SB Fngr Lakes MHC of NY (33.1)....... 8.75 8.75 0.39 4.11 0.97 0.34 3.60 0.50 93.11 0.96
SFED SFS Bancorp of Schenectady NY........ 12.29 12.29 0.62 4.91 3.71 0.60 4.74 0.84 53.36 0.58
SGVB SGV Bancorp of W. Covina CA.......... 7.55 7.44 0.33 4.42 3.26 0.39 5.12 1.23 26.58 0.42
SHSB SHS Bancorp, Inc. of PA.............. 13.56 13.56 0.75 5.58 4.73 0.75 5.58 1.20 43.23 0.79
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
NWSB Northwest SB, MHC of PA (30.7)......... NM NM 35.38 NM NM 0.16 0.94 39.02
NTMG Nutmeg FS&LA of CT..................... 16.24 185.03 10.20 185.03 25.30 0.20 1.84 29.85
OHSL OHSL Financial Corp. of OH............. 20.83 160.87 17.53 160.87 21.77 0.88 2.61 54.32
OCFC Ocean Fin. Corp. of NJ................. 20.54 133.19 19.00 133.19 20.66 0.80 2.19 44.94
OTFC Oregon Trail Fin. Corp. of OR.......... 29.17 172.74 21.58 172.74 28.72 0.20 1.09 31.75
OFCP Ottawa Financial Corp. of MI........... 20.60 203.55 17.54 250.21 21.67 0.40 1.37 28.17
PFFB PFF Bancorp of Pomona CA............... 25.87 136.72 13.27 138.11 27.25 0.00 0.00 0.00
PSFI PS Financial of Chicago IL............. 19.63 95.73 35.73 95.73 19.36 0.48 3.40 66.67
PVFC PVF Capital Corp. of OH................ 12.63 221.20 16.11 221.20 13.41 0.00 0.00 0.00
PBCI Pamrapo Bancorp, Inc. of NJ............ 15.59 162.57 20.94 163.62 16.32 1.12 4.04 62.92
PFED Park Bancorp of Chicago IL............. 28.41 113.29 24.72 113.29 26.41 0.00 0.00 0.00
PVSA Parkvale Financial Corp of PA.......... 15.10 197.91 15.66 199.04 15.10 0.60 1.92 28.99
PBHC Pathfinder BC MHC of NY (46.1)*........ NM 271.34 32.51 320.14 NM 0.20 0.90 31.25
PEEK Peekskill Fin. Corp. of NY............. 26.38 113.52 28.65 113.52 26.38 0.36 2.13 56.25
PFSB PennFed Fin. Services of NJ............ 16.67 173.87 12.09 202.85 16.82 0.14 0.76 12.61
PWBC PennFirst Bancorp of PA................ 18.75 148.54 11.18 166.75 18.75 0.36 1.86 34.95
PWBK Pennwood Bancorp, Inc. of PA........... 22.59 121.67 21.88 121.67 19.53 0.36 1.92 43.37
PBKB People's Bancshares of MA*............. 18.06 290.83 11.92 303.03 NM 0.48 1.85 33.33
PFDC Peoples Bancorp of Auburn IN........... 17.86 169.81 25.92 169.81 17.86 0.44 1.96 34.92
PBCT Peoples Bank, MHC of CT (40.1)*........ 25.66 333.76 28.96 335.50 NM 0.76 1.96 50.33
TSBS Peoples Bcrp, MHC of NJ (35.9)(8)*..... NM NM 63.21 NM NM 0.35 0.78 42.68
PFFC Peoples Fin. Corp. of OH............... 29.70 151.60 28.57 151.60 NM 0.50 3.01 NM
PHBK Peoples Heritage Fin Grp of ME*........ 17.64 272.91 19.08 NM 17.84 0.88 1.88 33.21
PSFC Peoples Sidney Fin. Corp of OH......... 28.13 122.28 30.24 122.28 28.13 0.28 1.56 43.75
PERM Permanent Bancorp, Inc. of IN.......... 28.80 180.36 18.03 182.56 29.03 0.44 1.22 35.20
PMFI Perpetual Midwest Fin. of IA(8)........ 28.80 158.90 14.17 158.90 NM 0.30 1.02 29.41
PERT Perpetual of SC, MHC (46.8)(8)......... NM 324.85 38.68 324.85 NM 1.40 2.13 NM
PCBC Perry Co. Fin. Corp. of MO............. 21.73 117.72 22.64 117.72 21.73 0.40 1.72 37.38
PHFC Pittsburgh Home Fin Corp of PA......... 16.71 142.81 11.75 144.54 19.43 0.24 1.34 22.43
PFSL Pocahnts Fed, MHC of AR (47.0)(8)...... NM 302.44 19.23 302.44 NM 0.90 1.96 62.07
PTRS Potters Financial Corp of OH........... 15.24 165.78 14.88 165.78 15.50 0.20 1.07 16.26
PKPS Poughkeepsie Fin. Corp. of NY(8)....... NM 198.09 16.43 198.09 NM 0.24 2.10 NM
PHSB Ppls Home SB, MHC of PA (45.0)......... NM 190.45 25.03 190.45 NM 0.24 1.22 40.68
PRBC Prestige Bancorp of PA................. 22.38 112.70 12.29 112.70 22.92 0.20 1.04 23.26
PFNC Progress Financial Corp. of PA......... 19.35 297.41 15.14 NM 25.53 0.12 0.65 12.63
PSBK Progressive Bank, Inc. of NY(8)*....... 19.33 212.40 18.87 234.25 19.77 0.80 1.84 35.56
PROV Provident Fin. Holdings of CA.......... 23.32 135.85 15.73 135.85 NM 0.00 0.00 0.00
PULB Pulaski SB, MHC of MO (29.8)(8)........ NM NM 58.73 NM NM 1.10 2.19 NM
PLSK Pulaski SB, MHC of NJ (46.0)........... NM 194.36 23.20 194.36 NM 0.30 1.50 56.60
PULS Pulse Bancorp of S. River NJ........... 14.39 186.09 15.25 186.09 14.24 0.80 3.00 43.24
QCFB QCF Bancorp of Virginia MN............. 15.61 150.03 24.68 150.03 15.61 0.00 0.00 0.00
QCBC Quaker City Bancorp of CA.............. 17.82 143.87 12.41 143.87 18.55 0.00 0.00 0.00
QCSB Queens County Bancorp of NY*........... 27.01 NM 39.19 NM 27.36 0.80 1.90 51.28
RARB Raritan Bancorp of Raritan NJ*......... 16.06 203.53 15.39 206.55 16.36 0.60 2.26 36.36
REDF RedFed Bancorp of Redlands CA(8)....... 13.81 170.64 14.24 171.23 13.43 0.00 0.00 0.00
RELY Reliance Bancorp, Inc. of NY........... 19.81 187.00 16.00 274.71 18.91 0.72 1.93 38.30
RELI Reliance Bancshares Inc of WI.......... NM 101.95 51.06 101.95 NM 0.00 0.00 0.00
RCBK Richmond County Fin Corp of NY*........ NM 152.16 39.03 152.16 NM 0.00 0.00 0.00
RIVR River Valley Bancorp of IN............. 21.43 131.76 16.76 133.65 25.66 0.20 1.03 21.98
RVSB Riverview Bancorp of WA................ NM 174.36 39.64 180.66 NM 0.14 0.82 25.93
RSLN Roslyn Bancorp, Inc. of NY*............ NM 163.82 28.59 164.62 25.10 0.32 1.36 41.56
SCCB S. Carolina Comm. Bnshrs of SC......... 28.01 138.31 28.61 138.31 28.01 0.64 2.89 NM
SBFL SB Fngr Lakes MHC of NY (33.1)......... NM NM 35.67 NM NM 0.20 0.81 NM
SFED SFS Bancorp of Schenectady NY.......... 26.99 133.88 16.45 133.88 27.94 0.32 1.35 36.36
SGVB SGV Bancorp of W. Covina CA............ NM 133.28 10.06 135.24 26.52 0.00 0.00 0.00
SHSB SHS Bancorp, Inc. of PA................ 21.14 116.86 15.85 116.86 21.14 0.00 0.00 0.00
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of March 20, 1998
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- -----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- -------------- NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
SISB SIS Bancorp, Inc. of MA*............. 7.24 7.24 0.65 8.83 3.47 0.88 12.06 0.47 279.99 2.67
SWCB Sandwich Bancorp of MA(8)*........... 8.10 7.82 0.98 12.12 4.33 0.96 11.83 0.56 140.03 1.11
SFSL Security First Corp. of OH........... 9.36 9.22 1.38 14.76 5.29 1.38 14.76 0.43 176.70 0.84
SKAN Skaneateles Bancorp Inc of NY*....... 6.90 6.72 0.67 9.83 5.99 0.65 9.49 1.89 52.90 1.19
SOBI Sobieski Bancorp of S. Bend IN....... 14.39 14.39 0.60 3.91 3.06 0.60 3.91 0.26 87.34 0.29
SOSA Somerset Savings Bank of MA(8)*...... 6.64 6.64 1.15 18.37 7.29 1.12 17.86 4.86 29.23 1.83
SSFC South Street Fin. Corp. of NC*....... 14.90 14.90 0.85 3.61 3.47 0.87 3.69 0.16 118.51 0.38
SCBS Southern Commun. Bncshrs of AL....... 20.42 20.42 1.15 5.98 3.78 1.15 5.98 2.34 48.64 1.73
SMBC Southern Missouri Bncrp of MO........ 16.60 16.60 0.85 5.22 3.91 0.81 4.98 0.83 58.44 0.66
SWBI Southwest Bancshares of IL(8)........ 11.96 11.96 1.09 9.85 4.65 1.10 9.92 0.18 115.50 0.29
SVRN Sovereign Bancorp, Inc. of PA........ 4.76 3.95 0.48 11.13 2.79 0.65 15.15 0.67 94.38 0.91
STFR St. Francis Cap. Corp. of WI......... 8.27 7.38 0.78 9.58 5.05 0.75 9.21 0.30 126.18 0.81
SPBC St. Paul Bancorp, Inc. of IL......... 9.17 9.14 1.08 12.20 5.46 1.09 12.29 0.24 308.50 1.06
SFFC StateFed Financial Corp. of IA....... 17.66 17.66 1.27 7.17 4.83 1.27 7.17 1.74 14.72 0.33
SFIN Statewide Fin. Corp. of NJ........... 9.36 9.34 0.81 8.36 5.23 0.81 8.36 0.38 104.03 0.84
STSA Sterling Financial Corp. of WA....... 5.48 5.07 0.51 10.96 4.51 0.46 9.91 0.73 65.29 0.83
SFSB SuburbFed Fin. Corp. of IL(8)........ 6.73 6.71 0.66 10.03 4.61 0.53 8.11 0.47 42.37 0.30
ROSE T R Financial Corp. of NY*........... 6.27 6.27 0.98 15.68 5.55 0.87 14.01 0.52 74.90 0.72
THRD TF Financial Corp. of PA............. 8.39 7.00 0.77 7.24 5.61 0.66 6.16 0.29 117.08 0.80
TPNZ Tappan Zee Fin., Inc. of NY.......... 17.16 17.16 0.85 4.86 3.46 0.84 4.79 1.39 39.34 1.18
TSBK Timberland Bancorp of WA............. 30.46 30.46 1.85 6.06 4.14 1.85 6.06 3.07 19.72 0.94
TRIC Tri-County Bancorp of WY............. 15.37 15.37 1.02 6.67 5.13 1.05 6.85 NA NA 1.01
TWIN Twin City Bancorp, Inc. of TN........ 12.89 12.89 1.01 7.87 5.76 0.83 6.48 0.09 131.58 0.16
USAB USABancshares, Inc of PA*............ 8.43 8.30 0.49 5.72 2.61 0.43 5.01 0.57 70.22 0.75
UCBC Union Community Bancorp of IN........ 36.48 36.48 1.58 4.33 3.74 1.58 4.33 NA NA 0.32
UFRM United FSB of Rocky Mount NC(8)...... 7.23 7.23 0.65 8.66 3.00 0.42 5.62 1.06 88.10 1.10
UBMT United Fin. Corp. of MT.............. 24.01 24.01 1.41 6.09 4.32 1.40 6.04 0.48 15.21 0.22
UTBI United Tenn. Bancshares of TN........ 24.48 24.48 1.25 5.10 4.53 1.25 5.10 0.93 74.91 1.29
VABF Va. Beach Fed. Fin. Corp of VA....... 7.16 7.16 0.67 9.65 4.18 0.54 7.76 1.13 61.96 0.92
WHGB WHG Bancshares of MD................. 19.66 19.66 0.76 3.59 3.00 0.77 3.65 0.95 19.59 0.24
WSFS WSFS Financial Corp. of DE*.......... 5.72 5.69 1.12 20.56 6.03 1.10 20.25 1.39 117.68 3.15
WVFC WVS Financial Corp. of PA............ 10.66 10.66 1.31 11.07 5.50 1.32 11.17 0.20 312.48 1.14
WRNB Warren Bancorp of Peabody MA*........ 10.79 10.79 2.00 19.45 7.96 1.78 17.31 0.83 132.18 1.68
WSBI Warwick Community Bncrp of NY*....... 23.76 23.76 1.04 4.37 3.12 1.04 4.37 0.69 67.04 0.80
WFSL Washington Federal, Inc. of WA....... 12.89 11.90 1.88 15.54 7.14 1.85 15.32 0.60 69.21 0.56
WAMU Washington Mutual, Inc. of WA*....... 5.35 4.98 0.50 9.55 1.73 0.92 17.75 0.83 83.12 0.99
WYNE Wayne Bancorp, Inc. of NJ............ 12.57 12.57 0.76 5.59 3.37 0.76 5.59 0.92 87.82 1.20
WAYN Wayne Svgs Bks MHC of OH (47.8....... 9.48 9.48 0.75 8.07 2.80 0.70 7.49 0.45 83.22 0.46
WCFB Wbstr Cty FSB MHC of IA (45.2)....... 23.50 23.50 1.45 6.21 3.11 1.45 6.21 0.06 652.54 0.70
WBST Webster Financial Corp. of CT........ 5.44 4.75 0.54 10.34 3.47 0.82 15.76 0.65 114.22 1.34
WEFC Wells Fin. Corp. of Wells MN......... 14.71 14.71 1.09 7.67 6.03 1.07 7.46 NA NA NA
WCBI WestCo Bancorp, Inc. of IL........... 15.38 15.38 1.51 9.79 6.50 1.41 9.13 0.19 147.79 0.37
WSTR WesterFed Fin. Corp. of MT........... 10.40 8.45 0.81 7.25 5.02 0.78 7.03 0.35 136.97 0.73
WOFC Western Ohio Fin. Corp. of OH........ 13.87 12.94 0.37 2.65 2.35 0.43 3.09 0.44 115.19 0.66
WEHO Westwood Hmstd Fin Corp of OH........ 22.45 22.45 0.67 2.33 2.12 1.05 3.68 0.12 171.61 0.23
FFWD Wood Bancorp of OH................... 12.80 12.80 1.44 11.41 4.45 1.29 10.26 0.39 93.94 0.44
YFCB Yonkers Fin. Corp. of NY............. 13.54 13.54 1.04 7.04 5.10 1.03 6.97 0.49 71.78 0.82
YFED York Financial Corp. of PA........... 8.86 8.86 0.96 11.17 4.94 0.80 9.31 2.24 29.20 0.75
</TABLE>
<TABLE>
<CAPTION>
Pricing Ratios Dividend Data(6)
---------------------------------------- ------------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
SISB SIS Bancorp, Inc. of MA*............... 28.83 218.72 15.83 218.72 21.12 0.64 1.62 46.72
SWCB Sandwich Bancorp of MA(8)*............. 23.10 266.99 21.62 276.58 23.67 1.40 2.42 56.00
SFSL Security First Corp. of OH............. 18.91 268.50 25.13 272.40 18.91 0.32 1.42 26.89
SKAN Skaneateles Bancorp Inc of NY*......... 16.71 157.56 10.87 161.90 17.30 0.28 1.44 24.14
SOBI Sobieski Bancorp of S. Bend IN......... NM 128.87 18.54 128.87 NM 0.32 1.51 49.23
SOSA Somerset Savings Bank of MA(8)*........ 13.72 229.77 15.25 229.77 14.11 0.00 0.00 0.00
SSFC South Street Fin. Corp. of NC*......... 28.79 170.05 25.34 170.05 28.14 0.40 3.23 NM
SCBS Southern Commun. Bncshrs of AL......... 26.43 145.33 29.68 145.33 26.43 0.30 1.62 42.86
SMBC Southern Missouri Bncrp of MO.......... 25.59 132.06 21.92 132.06 26.85 0.50 2.30 58.82
SWBI Southwest Bancshares of IL(8).......... 21.52 200.37 23.96 200.37 21.38 0.80 2.46 52.98
SVRN Sovereign Bancorp, Inc. of PA.......... NM 299.73 14.26 NM 26.36 0.08 0.37 13.11
STFR St. Francis Cap. Corp. of WI........... 19.79 184.74 15.28 207.22 20.58 0.56 1.20 23.83
SPBC St. Paul Bancorp, Inc. of IL........... 18.31 214.32 19.66 215.02 18.19 0.40 1.53 27.97
SFFC StateFed Financial Corp. of IA......... 20.71 144.28 25.48 144.28 20.71 0.20 1.38 28.57
SFIN Statewide Fin. Corp. of NJ............. 19.12 158.65 14.85 158.98 19.12 0.44 1.93 36.97
STSA Sterling Financial Corp. of WA......... 22.17 187.64 10.29 203.03 24.52 0.00 0.00 0.00
SFSB SuburbFed Fin. Corp. of IL(8).......... 21.70 204.85 13.79 205.46 26.83 0.32 0.67 14.55
ROSE T R Financial Corp. of NY*............. 18.02 259.31 16.26 259.31 20.17 0.68 1.92 34.52
THRD TF Financial Corp. of PA............... 17.81 173.35 14.55 207.70 20.96 0.48 1.76 31.37
TPNZ Tappan Zee Fin., Inc. of NY............ 28.93 140.04 24.02 140.04 29.35 0.28 1.38 40.00
TSBK Timberland Bancorp of WA............... 24.17 146.45 44.60 146.45 24.17 0.00 0.00 0.00
TRIC Tri-County Bancorp of WY............... 19.48 126.58 19.45 126.58 18.99 0.40 2.67 51.95
TWIN Twin City Bancorp, Inc. of TN.......... 17.35 133.61 17.22 133.61 21.07 0.40 2.71 47.06
USAB USABancshares, Inc of PA*.............. NM 165.54 13.95 168.04 NM 0.00 0.00 0.00
UCBC Union Community Bancorp of IN.......... 26.72 115.67 42.20 115.67 26.72 0.30 1.94 51.72
UFRM United FSB of Rocky Mount NC(8)........ NM 273.78 19.80 273.78 NM 0.24 1.26 42.11
UBMT United Fin. Corp. of MT................ 23.16 139.58 33.52 139.58 23.35 1.00 3.54 NM
UTBI United Tenn. Bancshares of TN.......... 22.06 112.43 27.53 112.43 22.06 0.00 0.00 0.00
VABF Va. Beach Fed. Fin. Corp of VA......... 23.94 221.56 15.87 221.56 29.74 0.24 1.22 29.27
WHGB WHG Bancshares of MD................... NM 125.52 24.67 125.52 NM 0.32 1.78 59.26
WSFS WSFS Financial Corp. of DE*............ 16.58 314.37 17.99 316.18 16.83 0.00 0.00 0.00
WVFC WVS Financial Corp. of PA.............. 18.19 218.19 23.26 218.19 18.02 1.20 3.10 56.34
WRNB Warren Bancorp of Peabody MA*.......... 12.57 228.14 24.62 228.14 14.12 0.52 2.17 27.23
WSBI Warwick Community Bncrp of NY*......... NM 139.92 33.25 139.92 NM 0.00 0.00 0.00
WFSL Washington Federal, Inc. of WA......... 14.01 205.82 26.54 223.08 14.22 0.87 3.00 42.03
WAMU Washington Mutual, Inc. of WA*......... NM NM 19.64 NM NM 1.16 1.57 NM
WYNE Wayne Bancorp, Inc. of NJ.............. 29.64 170.62 21.44 170.62 29.64 0.20 0.70 20.62
WAYN Wayne Svgs Bks MHC of OH (47.8......... NM 279.85 26.54 279.85 NM 0.62 2.07 73.81
WCFB Wbstr Cty FSB MHC of IA (45.2)......... NM 196.98 46.30 196.98 NM 0.80 3.83 NM
WBST Webster Financial Corp. of CT.......... 28.79 237.58 12.93 272.43 18.89 0.80 1.20 34.63
WEFC Wells Fin. Corp. of Wells MN........... 16.59 123.93 18.23 123.93 17.05 0.48 2.56 42.48
WCBI WestCo Bancorp, Inc. of IL............. 15.38 148.99 22.91 148.99 16.51 0.68 2.31 35.60
WSTR WesterFed Fin. Corp. of MT............. 19.91 134.02 13.94 164.95 20.54 0.48 1.85 36.92
WOFC Western Ohio Fin. Corp. of OH.......... NM 111.16 15.41 119.10 NM 1.00 3.85 NM
WEHO Westwood Hmstd Fin Corp of OH.......... NM 138.02 30.98 138.02 29.86 0.36 2.46 NM
FFWD Wood Bancorp of OH..................... 22.47 248.76 31.84 248.76 25.00 0.34 1.70 38.20
YFCB Yonkers Fin. Corp. of NY............... 19.61 134.50 18.21 134.50 19.80 0.28 1.40 27.45
YFED York Financial Corp. of PA............. 20.24 215.37 19.09 215.37 24.29 0.52 2.04 41.27
</TABLE>
<PAGE>
EXHIBIT IV-2
Historical Stock Price Indices
<PAGE>
Exhibit IV-2
Historical Stock Price Indices(1)
<TABLE>
<CAPTION>
SNL SNL
NASDAQ Thrift Bank
Year/Qtr. Ended DJIA S&P 500 Composite Index Index
- --------------- ------ ------- --------- ------ -----
<S> <C> <C> <C> <C> <C>
1991: Quarter 1............. 2881.1 375.2 482.3 125.5 66.0
Quarter 2............. 2957.7 371.2 475.9 130.5 82.0
Quarter 3............. 3018.2 387.9 526.9 141.8 90.7
Quarter 4............. 3168.0 417.1 586.3 144.7 103.1
1992: Quarter 1............. 3235.5 403.7 603.8 157.0 113.3
Quarter 2............. 3318.5 408.1 563.6 173.3 119.7
Quarter 3............. 3271.7 417.8 583.3 167.0 117.1
Quarter 4............. 3301.1 435.7 677.0 201.1 136.7
1993: Quarter 1............. 3435.1 451.7 690.1 228.2 151.4
Quarter 2............. 3516.1 450.5 704.0 219.8 147.0
Quarter 3............. 3555.1 458.9 762.8 258.4 154.3
Quarter 4............. 3754.1 466.5 776.8 252.5 146.2
1994: Quarter 1............. 3625.1 445.8 743.5 241.6 143.1
Quarter 2............. 3625.0 444.3 706.0 269.6 152.6
Quarter 3............. 3843.2 462.6 764.3 279.7 149.2
Quarter 4............. 3834.4 459.3 752.0 244.7 137.6
1995: Quarter 1............. 4157.7 500.7 817.2 278.4 152.1
Quarter 2............. 4556.1 544.8 933.5 313.5 171.7
Quarter 3............. 4789.1 584.4 1,043.5 362.3 195.3
Quarter 4............. 5117.1 615.9 1,052.1 376.5 207.6
1996: Quarter 1............. 5587.1 645.5 1,101.4 382.1 225.1
Quarter 2............. 5654.6 670.6 1,185.0 387.2 224.7
Quarter 3............. 5882.2 687.3 1,226.9 429.3 249.2
Quarter 4............. 6442.5 737.0 1,280.7 483.6 280.1
1997: Quarter 1............. 6583.5 757.1 1,221.7 527.7 292.5
Quarter 2............. 7672.8 885.1 1,442.1 624.5 333.3
Quarter 3............. 7945.3 947.3 1,685.7 737.5 381.7
Quarter 4............. 7908.3 970.4 1,570.4 814.1 414.9
March 20, 1998 8906.4 1099.2 1,789.2 872.7 460.9
</TABLE>
(1) End of period data.
Sources: SNL Securities; Wall Street Journal.
<PAGE>
EXHIBIT IV-3
Historical Thrift Stock Indices
<PAGE>
ThriftINVESTOR
Index Values
<TABLE>
<CAPTION>
Index Values Percent Change
-------------------------------------------- --------------------------------
02/27/98 1 Month YTD LTM 1 Month YTD LTM
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
All Pub. Traded Thrifts ............. 818.7 768.3 814.1 563.1 6.55 0.57 45.38
MHC Index ........................... 1,191.4 1,110.1 1,179.9 609.6 7.32 0.97 95.44
Deposit Insurance Indices
- --------------------------------------------------------------------------------------------------------------------------
SAIF Thrifts ........................ 759.5 711.2 764.4 506.8 6.79 -0.65 49.87
BIF Thrifts ......................... 1,011.3 952.7 984.4 726.3 6.16 2.74 39.24
Stock Exchange Indices
- --------------------------------------------------------------------------------------------------------------------------
AMEX Thrifts ........................ 254.3 242.6 255.4 169.1 4.85 -0.41 50.39
NYSE Thrifts ........................ 509.8 473.0 521.3 336.9 7.78 -2.20 51.34
OTC ................................. 927.1 873.5 911.5 645.4 6.14 1.71 43.65
Geographic Indices
- --------------------------------------------------------------------------------------------------------------------------
Mid-Atlantic Thrifts ................ 1,752.5 1,620.6 1,735.2 1,118.2 8.14 1.00 56.72
Midwestern Thrifts................... 1,876.2 1,770.0 1,832.9 1,258.0 6.00 2.36 49.14
New England Thrifts.................. 776.0 724.7 778.3 482.1 7.08 -0.30 60.98
Southeastern Thrifts................. 789.6 748.8 776.0 523.5 5.46 1.76 50.84
Southwestern Thrifts................. 519.1 477.4 533.5 369.2 8.75 -2.70 40.61
Western Thrifts...................... 776.3 734.3 778.8 579.8 5.71 -0.33 33.89
Asset Size Indices
- --------------------------------------------------------------------------------------------------------------------------
Less than $250M...................... 877.8 850.0 869.9 635.9 3.27 0.91 38.05
$250M to $500M....................... 1,324.4 1,266.7 1,312.3 862.9 4.55 0.92 53.48
$500M to $1B......................... 853.9 824.0 846.8 574.0 3.62 0.84 48.76
$1B to $5B........................... 983.9 909.6 956.8 618.8 8.17 2.83 59.01
Over $5B............................. 509.8 477.1 512.3 366.2 6.86 -0.48 39.20
Comparative Indices
- --------------------------------------------------------------------------------------------------------------------------
Dow Jones Industirals................ 8,545.7 7,906.5 7,908.3 6,925.1 8.08 8.06 23.40
S&P 500.............................. 1,049.3 980.3 970.4 795.1 7.04 8.13 31.98
</TABLE>
All SNL indices are market-value weighted: i.e., an institution's effect on an
index is proportionate to that institution's market capitalization. All SNL
thrift indices, except for the SNL MHC Incex began at 100 on March 30, 1984.
The SNL MHC Index began at 201.082 on Dec. 31, 1992, the level of the SNL
Thrift index on that date. On March 30, 1984 the S&P 500 closed at 159.2 and
the Dow Jones Industrials stood at 1164.9.
Mid-Atlantic: DE. DC. MD. NJ. NY. PA. PR: Midwest: IA. IL. IN. KS. KY. MI. MN.
ND. NE. OH. SD. WI: New England: CT. MA. ME. NH. RI. VT: Southeast: AL. AR.
FL. GA. MS. NC. TN. VA. WV: Southwest: CO. LA. NM. OK. TX. UT: West: AZ. AK.
CA. HI. ID. MT. NV. OR. WA. WY.
<PAGE>
EXHIBIT IV-4
Market Area Acquisition Activity
<PAGE>
Exhibit IV-4
Louisiana Band and Thrift Merger and Acquisition Activity
1997 To Present
<TABLE>
Seller Financials at Announcement
____________________________________________________
Total Total YTD YTD NPAs Rsvrs/
Assets Equity ROAA ROAE Assets NPLs
Annd Comp
Date Date Buyer ST Seller ST ($000) (%) (%) (%) (%) (%)
__________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
02/10/98 Pending Hibernia Corporation LA Peoples Holding Corp LA 226,581 12.02 1.70 13.51 0.14 814.12
12/09/97 Pending Whitney Holding Corp LA Louisiana Natl Scty LA 106,640 11.90 0.93 8.21 0.57 139.50
11/21/97 Pending Whitney Holding Corp LA Meritrust Federal SB LA 233,311 8.26 1.20 14.94 0.25 125.29
11/04/97 Pending Regions Financial AL St. Mary Hldg Corp LA 107,953 11.24 1.84 16.53 0.52 240.05
10/20/97 Pending Banc One Corporation OH First Commerce Corp LA 9,311,246 NA 1.36 16.76 0.43 227.04
10/20/97 Pending First United Bnc hrs AR First Republic Bcshs LA 143,261 7.39 0.97 12.75 0.76 103.01
07/16/97 02/01/98 Hibernia Corporation LA Argent Bank LA 609,018 11.18 1.39 12.21 0.11 NA
06/27/97 12/31/97 Hibernia Corporation LA Northwest Bancshares LA 97,672 9.78 1.35 14.04 0.19 452.70
06/19/97 12/31/97 First United Bncshrs AR City Bank & Trust LA 61,541 10.25 2.18 21.50 0.55 376.99
05/30/97 12/01/97 Union Planters Corp TN First Acadian Bncshs LA 80,449 7.13 1.29 18.40 0.61 142.48
03/26/97 08/01/97 Deposit Guaranty MS CitiSave Financial LA 75,286 16.33 0.56 3.21 0.31 35.67
03/03/97 07/15/97 Hancock Holding Co MS Commerce Corp LA 28,764 2.88 0.90 37.19 NA NA
02/25/97 08/22/97 Mansfield Bancshares LA Riverside Bancshares LA 20,137 7.61 0.79 10.04 0.23 521.62
02/20/97 06/30/97 Deposit Guaranty MS NBC Financial Corp. LA 62,936 8.26 0.74 8.95 0.75 752.50
02/14/97 05/31/97 Regions Financial AL New Iberia Bancorp LA 282,765 8.81 1.32 14.72 0.27 453.69
01/31/97 05/21/97 Minden Bancshares LA First Federal SB LA 36,140 9.22 0.07 0.79 0.12 NA
12/27/96 03/31/97 Deposit Guaranty MS First Capital Bncp LA 185,632 6.87 1.47 21.92 0.46 135.22
10/11/96 02/28/97 Whitney Holding Corp LA First National Bkshr LA 209,917 8.32 1.08 13.45 1.49 90.73
09/27/96 04/11/97 Regions Financial AL Gulf South Bancshrs LA 54,502 8.92 1.20 13.76 0.80 112.18
08/23/96 06/30/97 Argent Bank LA Assumption Bncshrs LA 107,946 8.64 1.26 14.75 0.72 165.12
08/23/96 01/03/97 Deposit Guaranty MS Jefferson Guaranty LA 298,725 6.94 1.00 14.57 NA NA
07/31/96 01/16/97 Hancock Holding Co MS Southeast NB LA 36,441 10.22 1.36 13.06 0.85 1736.36
06/25/96 03/13/97 Regions Financial AL West Carroll Bncshrs LA 117,069 10.68 2.43 23.78 0.20 278.50
Average 543,214 9.22 1.25 14.74 0.49 363.30
Median 107,946 8.87 1.26 14.04 0.46 227.04
</TABLE>
<TABLE>
Deal Terms and Pricing at Announcement
_______________________________________________________________
Deal Deal Deal Deal Pr/ Deal Pr/ Deal Pr/ TgBkPr/
Annd Comp Value Pr/Shr Consid. Pr/Bk Tg Bk 4-Qtr Assets CoreDp
Date Date Buyer ST Seller ($M) ($)Type (%) (%) EPS (x) (%) (%)
___________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
02/10/98 Pending Hibernia Corporation LA Peoples Holding Corp 73.0 185.000 Com Stock 253.02 270.34 20.05 32.22 27.71
12/09/97 Pending Whitney Holding Corp LA Louisiana Natl Scty 32.0 996.000 Com Stock 247.51 252.90 42.05 30.01 23.88
11/21/97 Pending Whitney Holding Corp LA Meritrust Federal SB 60.5 73.000 Com Stock 293.29 293.29 22.46 25.93 21.26
11/04/97 Pending Regions Financial AL St. Mary Hidg Corp 31.2 79.210 Com Stock 253.67 253.40 18.07 27.61 23.07
10/20/97 Pending Banc One Corporation OH First Commerce Corp 3060.8 70.641 Com Stock 348.16 357.49 23.31 32.87 38.95
10/20/97 Pending First United Bnc hrs AR First Republic Bcshs 31.8 NA Com Stock 266.53 274.99 19.85 22.20 20.18
07/16/97 02/01/98 Hibernia Corporation LA Argent Bank 191.4 29.199 Com Stock 251.28 251.28 22.29 31.43 29.03
06/27/97 12/31/97 Hibernia Corporation LA Northwest Bancshares 21.9 56.500 Com Stock 197.30 197.30 15.94 22.42 14.37
06/19/97 12/31/97 First United Bncshrs AR City Bank & Trust 15.0 NA Com Stock 237.68 237.68 12.32 24.37 20.27
05/30/97 12/01/97 Union Planters Corp TN First Acadian Bncshs 15.7 146.997 Com Stock 273.57 273.57 15.89 19.52 15.95
03/26/97 08/01/97 Deposit Guaranty MS CitiSave Financial 20.2 20.500 Cash 160.53 160.53 43.62 26.83 13.84
03/03/97 07/15/97 Hancock Holding Co MS Commerce Corp 3.3 NA Mixture 399.03 399.03 12.84 11.47 10.14
02/25/97 08/22/97 Mansfield Bancshares LA Riverside Bancshares 2.4 NA Cash 154.55 154.55 15.48 11.92 5.10
02/20/97 06/30/97 Deposit Guaranty MS NBC Financial Corp. 13.4 NA Com Stock 243.99 243.99 29.23 19.36 14.17
02/14/97 05/31/97 Regions Financial AL New Iberia Bancorp 62.1 20.700 Com Stock 248.20 249.70 17.11 21.96 18.19
01/31/97 05/21/97 Minden Bancshares LA First Federal SB 5.4 33.750 Cash 162.11 162.11 48.21 14.94 7.95
12/27/96 03/31/97 Deposit Guaranty MS First Capital Bncp 45.1 98.038 Com Stock 353.42 353.42 22.28 24.30 20.93
10/11/96 02/28/97 Whitney Holding Corp LA First National Bkshr 41.0 20.320 Com Stock 234.64 234.64 16.52 19.53 14.52
09/27/96 04/11/97 Regions Financial AL Gulf South Bancshrs 9.0 23.061 Com Stock 173.08 173.08 9.16 16.51 8.03
08/23/96 06/30/97 Argent Bank LA Assumption Bncshrs 21.5 NA Mixture 230.41 230.41 18.55 19.92 13.06
08/23/96 01/03/97 Deposit Guaranty MS Jefferson Guaranty 53.0 29.478 Mixture 233.40 239.27 13.90 17.74 12.43
07/31/96 01/16/97 Hancock Holding Co MS Southeast NB 7.6 16.583 Mixture 203.97 203.97 11.52 20.85 13.23
06/25/96 03/13/97 Regions Financial AL West Carrdl Bncshrs 31.0 186.000 Com Stock 247.90 247.90 12.03 26.48 20.70
Average 167.3 122.646 246.40 248.47 20.99 22.63 17.69
Median 31.0 56.500 247.51 247.90 18.07 22.20 15.95
</TABLE>
<PAGE>
EXHIBIT IV-5
Ponchatoula Homestead Savings, F.A.
Director and Senior Management Summary Resumes
<PAGE>
Ponchatoula Homestead Savings, F.A.
Director and Senior Management Summary Resumes
<TABLE>
<CAPTION>
Position with
Ponchatoula and
Principal Occupation Director of Year
During the Ponchatoula Term
Name Age(1) Past Five Years Since Expires
- ------------------------ ------ ------------------------------- ------------ --------
<S> <C> <C> <C> <C>
John C. Bohning.............. 56 Director; President and manager 1974 2001
of Bohning's Supermarket,
Ponchatoula, Louisiana, since
1961.
Lawrence C. Caldwell, Jr..... 50 Director; President and Chief 1984 2000
Executive Officer of Ponchatoula
since January 1994. From 1984
until January 1994, served as
Executive Vice President and
Chief Executive Officer of
Ponchatoula. Present Chairman of
Louisiana League of Savings
Institutions and Commissioner on
the Louisiana Housing Finance
Agency.
Robert H. Gabriel............ 42 Director; President of Gabriel 1996 1999
Bldg. Supply Co., Inc.,
Ponchatoula, Louisiana, since
1982.
Dennis E. James.............. 38 Director; Audit Partner with 1996 2000
Durnin & James, CPA, Amite,
Louisiana, since 1987.
Allen B. Pierson, Jr......... 61 Director, Attorney and, from 1989(2) 2000
1991 to May 1996, a Partner
with the law firm of Matheny
and Pierson, Ponchatoula,
Louisiana.
Milton J. Schanzbach......... 71 Chairman of the Board; 1978 2001
Retired optometrist.
Barbara B. Theriot........... 53 Director; Secretary and 1994 1999
Treasurer of Ponchatoula since
1984.
</TABLE>
- -----------------
(1) Age as of December 31, 1997.
(2) In addition, Mr. Pierson served as a director of Ponchatoula from 1969
to 1983.
Source: Ponchatoula Savings' prospectus.
<PAGE>
EXHIBIT IV-6
Ponchatoula Homestead Savings, F.A.
Pro Forma Regulatory Capital Ratios
<PAGE>
EXHIBIT IV-6
Ponchatoula Homestead Savings, F.A.
Pro Forma Regulatory Capital Ratios
<TABLE>
<CAPTION>
Pro Forma at December 31, 1997 Based on
------------------------------------------------------------------------
722,500 850,000 977,500 1,124,125
Shares sold Shares sold Shares sold Shares sold
Historical at at $10.00 at $10.00 at $10.00 at $10.00
December 31, 1997 Per Share Per Share Per Share Per Share
----------------- ------------------ ----------------- ----------------- -----------------
Percent of Percent of Percent of Percent of Percent of
Amount Assets(1) Amount Assets(1) Amount Assets(1) Amount Assets(1) Amount Assets(1)
------ --------- ------ ---------- ------ ---------- ------ ---------- ------ ----------
(Dollars in Thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tangible capital:
Actual.................... $ 5,770 9.68% $ 8,407 13.38% $ 8,885 14.01% $ 9,363 14.63% $ 9,912 15.33%
Requirement............... 894 1.50 942 1.50 951 1.50 959 1.50 970 1.50
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
Excess.................... $ 4,876 8.18% 7,465 11.88% $ 7,934 12.51% $ 8,404 13.13% $ 8,942 13.83
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
Core capital(2):
Actual.................... $ 5,770 9.68% $ 8,407 13.38% $ 8,885 14.01% $ 9,363 14.63% $ 9,912 15.33%
Requirement............... 1,788 3.00 1,885 3.00 1,902 3.00 1,918 3.00 1,940 3.00
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
Excess.................... $ 3,982 6.68% $ 6,522 10.38% $ 6,983 11.01% $ 7,445 11.63% $ 7,972 12.33%
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
Risk-based capital(2):
Actual.................... $ 6,020 23.69% $ 8,657 33.23% $ 9,135 34.91% $ 9,613 36.58% $10,162 38.47%
Requirement............... 2,033 8.00 2,084 8.00 2,093 8.00 2,103 8.00 2,113 8.00
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
Excess.................... $ 3,987 15.69% 6,573 25.23% $ 7,042 26.91% $ 7,510 28.58% $ 8,049 30.47%
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
------ ---- ----- ----- ----- ----- ------ ----- ----- ----
</TABLE>
- ------------------------
(1) Adjusted total or adjusted risk-weighted assets, as appropriate.
(2) Does not reflect the interest rate risk component to be added to the
risk-based capital requirements or, in the case of the core capital
requirement, the 4.0% requirement to be met in order for an institution
to be "adequately capitalized" under applicable laws and regulations. See
"Regulation-The Associaition-Regulatory Capital Requirements."
<PAGE>
EXHIBIT IV-7
Ponchatoula Homestead Savings, F.A.
PRO FORMA ANALYSIS SHEET
<PAGE>
EXHIBIT IV-7
PRO FORMA ANALYSIS SHEET
Ponchatoula Homestead Savings, F.A.
Prices as of March 20, 1998
<TABLE>
<CAPTION>
Peer Group Louisiana Companies All SAIF Insured
------------------- ------------------- ----------------
Price Multiple Symbol Subject (1) Mean Median Mean Median Mean Median
- -------------- ------ ----------- -------- -------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Price-earnings ratio P/E 24.98x 20.77x 19.81x 21.03x 19.06x 20.22x 19.59x
Price-book ratio = P/B 86.75% 133.22% 131.06% 130.08% 145.01% 165.99% 158.33%
Price-assets ratio = P/A 16.75% 21.88% 18.76% 31.36% 21.78% 21.04% 19.57%
</TABLE>
<TABLE>
<CAPTION>
Valuation Parameters
- --------------------
<S> <C> <C> <C>
Pre-Conversion Earnings (Y) $320,000 (2) ESOP Stock Purchases (E) 8.00%
Pre-Conversion Book Value (B) $5,837,000 (3) Cost of ESOP Borrowings (S) 0.00%
Pre-Conv. Tang. Book Value (B) $5,837,000 (3) ESOP Amortization (T) 10.years
Pre-Conversion Assets (A) $59,682,000 (3) RRP Amount (M) 4.00%
Reinvestment Rate (2)(R) 3.92% RRP Vesting (N) 5.years
Est. Conversion Expenses (3)(X) 5.11% Percentage Sold (PCT) 76.06%
Tax rate (TAX) 34.00% LA Share/Franchise Tax (L) $59,000
</TABLE>
<TABLE>
<CAPTION>
Calculation of Pro Forma Value After Conversion
- -----------------------------------------------
<S> <C> <C>
1. V= P/E * (Y-L) V= $11,175,391
----------------------------------------------------------
1 - P/E * PCT * ((1-X-E-M)*R - (1-TAX)*E/T - (1-TAX)*M/N)
2. V= P/B * B V= $11,175,392
---------------------------
1 - P/B * PCT * (1-X-E-M)
3. V= P/A * A V= $11,175,390
---------------------------
1 - P/A * PCT * (1-X-E-M)
</TABLE>
<TABLE>
<CAPTION>
Full
Gross Exchange Conversion
Conclusion Proceeds Ratio Value
- ---------- ----------- -------- -----------
<S> <C> <C> <C>
Minimum.............................................. $7,225,000 1.5150 $9,499,080
Midpoint............................................. $8,500,000 1.7823 $11,175,390
Maximum.............................................. $9,775,000 2.0497 $12,851,700
Super maximum value..................................$11,241,250 2.3571 $14,779,450
</TABLE>
- -----------------------------------------------------------------
(1) Pricing ratios shown reflect the midpoint value.
(2) Includes impact of reinvesting $102,000 of MHC assets at an after-tax
rate of 3.92 percent.
(3) Includes $102,000 of MHC assets.
<PAGE>
EXHIBIT IV-8
Ponchatoula Homestead Savings, F.A.
Pro Forma Effect of Conversion Proceeds
<PAGE>
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Ponchatoula Homestead Savings, F.A.
At the Minimum of the Range
<TABLE>
<S> <C>
1. Conversion Proceeds
Full Conversion Value $9,499,080
Exchange Ratio 1.5150
Offering Proceeds $7,225,000
Less: Estimated Offering Expenses 421,000
Net Conversion Proceeds $6,804,000
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $6,804,000
Less: Non-cash purchases(1) 867,000
-- -------
Net Proceeds Reinvested $5,937,000
Estimated net incremental rate of return 3.92%
----
Earnings Increase $232,730
Less: Impact of State Franchise/Share Taxes 54,000
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings 38,148
Less: Recognition Plan Vesting 38,148
------
Net Earnings Increase $102,434
</TABLE>
<TABLE>
<CAPTION>
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
<S> <C> <C> <C>
12 Months ended December 31, 1997 (reported) $320,000 $102,434 $422,434
12 Months ended December 31, 1997 (core) $320,000 $102,434 $422,434
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $5,837,000 $5,937,000 $11,774,000
December 31, 1997 (Tangible) $5,837,000 $5,937,000 $11,774,000
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $59,682,000 $5,937,000 $65,619,000
</TABLE>
(1) Reflects ESOP borrowing of 10.0 percent of total offering and stock
purchased by Recognition Plans 4.0 percent of total offering.
(2) ESOP is financed by Holding Company.
(3) ESOP borrowings are amortized over 10 years, amortization is
tax-effected.
(4) Stock purchased by Recognition Plans is amortized over 5 years,
amortization is tax-effected.
<PAGE>
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Ponchatoula Homestead Savings, F.A.
At the Midpoint of the Range
<TABLE>
<S> <C>
1. Conversion Proceeds $11,175,390
Full Conversion Value 1.7823
Exchange Ratio
Offering Proceeds $8,500,000
Less: Estimated Offering Expenses 434,000
-------
Net Conversion Proceeds $8,066,000
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $8,066,000
Less: Non-cash purchases(1) 1,020,000
-- ---------
Net Proceeds Reinvested $7,046,000
Estimated net incremental rate of return 3.92%
----
Earnings Increase $276,203
Less: Impact of State Franchise/Share Taxes 59,000
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings 44,880
Less: Recognition Plan Vesting 44,880
------
Net Earnings Increase $127,443
</TABLE>
<TABLE>
<CAPTION>
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
<S> <C> <C> <C>
12 Months ended December 31, 1997 (reported) $320,000 $127,443 $447,443
12 Months ended December 31, 1997 (core) $320,000 $127,443 $447,443
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $5,837,000 $7,046,000 $12,883,000
December 31, 1997 (Tangible) $5,837,000 $7,046,000 $12,883,000
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $59,682,000 $7,046,000 $66,728,000
</TABLE>
(1) Reflects ESOP borrowing of 10.0 percent of total offering and stock
purchased by Recognition Plans 4.0 percent of total offering.
(2) ESOP is financed by Holding Company.
(3) ESOP borrowings are amortized over 10 years, amortization is
tax-effected.
(4) Stock purchased by Recognition Plans is amortized over 5 years,
amortization is tax-effected.
<PAGE>
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Ponchatoula Homestead Savings, F.A.
At the Maximum of the Range
<TABLE>
<S> <C>
1. Conversion Proceeds
Full Conversion Value $12,851,700
Exchange Ratio 2.0497
Offering Proceeds $9,775,000
Less: Estimated Offering Expenses 448,000
-------
Net Conversion Proceeds $9,327,000
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $9,327,000
Less: Non-cash purchases(1) 1,173,000
-- ---------
Net Proceeds Reinvested $8,154,000
Estimated net incremental rate of return 3.92%
----
Earnings Increase $319,637
Less: Impact of State Franchise/Share Taxes 65,000
Less: Estimated cost of ESOP borrowings 0
Less: Amortization of ESOP borrowings 51,612
Less: Recognition Plan Vesting 51,612
------
Net Earnings Increase $151,413
</TABLE>
<TABLE>
<CAPTION>
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
<S> <C> <C> <C>
12 Months ended December 31, 1997 (reported) $320,000 $151,413 $471,413
12 Months ended December 31, 1997 (core) $320,000 $151,413 $471,413
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $5,837,000 $8,154,000 $13,991,000
December 31, 1997 (Tangible) $5,837,000 $8,154,000 $13,991,000
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $59,682,000 $8,154,000 $67,836,000
</TABLE>
(1) Reflects ESOP borrowing of 10.0 percent of total offering and stock
purchased by Recognition Plans 4.0 percent of total offering.
(2) ESOP is financed by Holding Company.
(3) ESOP borrowings are amortized over 10 years, amortization is
tax-effected. (4) Stock purchased by Recognition Plans is amortized
over 5 years, amortization is tax-effected.
<PAGE>
Exhibit IV-8
PRO FORMA EFFECT OF CONVERSION PROCEEDS
Ponchatoula Homestead Savings, F.A.
At the Superrange Maximum
<TABLE>
<S> <C>
1. Conversion Proceeds
Full Conversion Value $14,779,450
Exchange Ratio 2.3571
Offering Proceeds $11,241,250
Less: Estimated Offering Expenses 463,000
-------
Net Conversion Proceeds $10,778,250
2. Estimated Additional Income from Conversion Proceeds
Net Conversion Proceeds $10,778,250
Less: Non-cash purchases(1) 1,348,950
---------
Net Proceeds Reinvested $9,429,300
Estimated net incremental rate of return 3.92%
----
Earnings Increase $369,629
Less: Impact of State Franchise/Share Taxes 70,000
Less: Estimated cost of ESOP borrowings(2) 0
Less: Amortization of ESOP borrowings(3) 59,354
Less: Recognition Plan Vesting(4) 59,354
------
Net Earnings Increase $180,921
</TABLE>
<TABLE>
<CAPTION>
Net
Before Earnings After
3. Pro Forma Earnings Conversion Increase Conversion
<S> <C> <C> <C>
12 Months ended December 31, 1997 (reported) $320,000 $180,921 $500,921
12 Months ended December 31, 1997 (core) $320,000 $180,921 $500,921
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
4. Pro Forma Net Worth Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $5,837,000 $9,429,300 $15,266,300
December 31, 1997 (Tangible) $5,837,000 $9,429,300 $15,266,300
</TABLE>
<TABLE>
<CAPTION>
Before Net Cash After
5. Pro Forma Assets Conversion Proceeds Conversion
<S> <C> <C> <C>
December 31, 1997 $59,682,000 $9,429,300 $69,111,300
</TABLE>
(1) Reflects ESOP borrowing of 10.0 percent of total offering and stock
purchased by Recognition Plans 4.0 percent of total offering.
(2) ESOP is financed by Holding Company.
(3) ESOP borrowings are amortized over 10 years, amortization is
tax-effected.
(4) Stock purchased by Recognition Plans is amortized over 5 years,
amortization is tax-effected.
<PAGE>
EXHIBIT IV-9
Peer Group Core Earnings Analysis
<PAGE>
RP FINANCIAL, LC.
- --------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Core Earnings Analysis
Comparable Institution Analysis
For the Twelve Months Ended December 31, 1997
<TABLE>
<CAPTION>
Estimated
Net Income Less: Net Tax Effect Less: Extd Core Income Estimated
to Common Gains (Loss) @34% Items to Common Shares Core EPS
---------- ------------ ---------- ---------- ----------- ------ ---------
($000) ($000) ($000) ($000) ($000) ($000) ($)
<S> <C> <C> <C> <C> <C> <C> <C>
Comparable Group
- ----------------
ANA Acadiana Bancshares, Inc. of LA (1).. 2,612 -127 43 0 2,528 2,697 0.94
ETFS East Texas Fin. Serv. of TX.......... 728 -82 28 0 674 1,026 0.66
FFDB FirstFed Bancorp, Inc. of AL......... 1,705 0 0 0 1,705 1,155 1.48
GUPB GFSB Bancorp, Inc. of Gallup NM...... 866 -3 1 0 864 801 1.08
CSLA GS Financial Corp. of LA............. 1,670 -48 16 0 1,638 3,439 0.48
SSFC South Street Fin. Corp. of NC........ 1,988 92 -31 0 2,049 4,676 0.44
SZB SouthFirst Bancshares of AL.......... 618 11 -4 0 625 976 0.64
SRN Southern Banc Company of AL (1)...... 501 0 0 0 501 1,230 0.41
TSH Teche Holding Company of LA.......... 3,897 -276 94 0 3,715 3,438 1.08
TWIN Twin City Bancorp. Inc. of TN........ 1,078 -286 97 0 889 1,269 0.70
</TABLE>
(1) Financial information is for the quarter ending September 30, 1997.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The
information provided in this table has been obtained from sources we
believe are reliable, but we cannot guarantee the accuracy or
completeness of such information.
Copyright (c) 1997 by RP Financial, LC.
<PAGE>
EXHIBIT V-1
RP Financial, LC
Firm Qualifications Statement
<PAGE>
RP FINANCIAL, L.C.
- ------------------------------------------ FIRM QUALIFICATION STATEMENT
Financial Services Industry Consultants
RP Financial provides financial and management consulting and valuation
services to the financial services industry nationwide, particularly
federally-insured financial institutions. RP Financial establishes long-term
client relationships through its wide array of services, emphasis on quality
and timeliness, hands-on involvement by our principals and senior consulting
staff, and careful structuring of strategic plans and transactions. RP
Financial's staff draws from backgrounds in consulting, regulatory agencies
and investment banking, thereby providing our clients with considerable
resources.
STRATEGIC AND CAPITAL PLANNING
RP Financial's strategic and capital planning services are designed to
provide effective workable plans with quantifiable results. Through a
program known as SAFE (Strategic Alternatives Financial Evaluation), RP
Financial analyzes strategic options to enhance shareholder value or other
established objectives. Our planning services involve conducting situation
analyses; establishing mission statements, strategic goals and objectives;
and identifying strategies for enhancement of franchise value, capital
management and planning, earnings improvement and operational issues.
Strategy development typically includes the following areas: capital
formation and management, asset/liability targets, profitability, return on
equity and market value of stock. Our proprietary financial simulation model
provides the basis for evaluating the financial impact of alternative
strategies and assessing the feasibility/compatibility of such strategies
with regulations and/or other guidelines.
MERGER AND ACQUISITION SERVICES
RP Financial's merger and acquisition (M&A) services include targeting
candidates and potential acquirors, assessing acquisition merit, conducting
detailed due diligence, negotiating and structuring transactions, preparing
merger business plans and financial simulations, rendering fairness opinions
and assisting in implementing post-acquisition strategies. Through our
financial simulations, comprehensive in-house data bases, valuation expertise
and regulatory knowledge, RP Financial's M&A consulting focuses on
structuring transactions to enhance shareholder returns.
VALUATION SERVICES
RP Financial's extensive valuation practice includes valuations for a variety
of purposes including mergers and acquisitions, mutual-to-stock conversions,
ESOPs, subsidiary companies, mark-to-market transactions, loan and servicing
portfolios, non-traded securities, core deposits, FAS 107 (fair market value
disclosure), FAS 122 (loan servicing rights) and FAS 123 (stock options). Our
principals and staff are highly experienced in performing valuation
appraisals which conform with regulatory guidelines and appraisal industry
standards. RP Financial is the nation's leading valuation firm for
mutual-to-stock conversions of thrift institutions.
OTHER CONSULTING SERVICES AND DATA BASES
RP Financial offers a variety of other services including branching
strategies, feasibility studies and special research studies, which are
complemented by our quantitative and computer skills. RP Financial's consulting
services are aided by its in-house data base resources for commercial banks
and savings institutions and proprietary valuation and financial simulation
models.
YEAR 2000 SERVICES
RP Financial, through a relationship with a computer research and development
company with a proprietary methodology, offers Year 2000 advisory and
conversion services to financial institutions which are most cost effective
and less disruptive than most other providers of such service.
RP Financial's Key Personnel (Years of Relevant Experience)
Ronald S. Riggins, Managing Director (18)
William E. Pommerening, Managing Director (14)
Gregory E. Dunn, Senior Vice President (16)
James P. Hennessey, Senior Vice President (13)
James J. Oren, Senior Vice President (11)
- --------------------------------------------------------------------------------
WASHINGTON HEADQUARTERS
Rosslyn Center
1700 North Moore Street, Suite 2210 Telephone: (703) 528-1700
Arlington, VA 22209 Fax No.: (703) 528-1788
