As filed with the Securities and Exchange Commission on July 28, 1998
Registration No. 333-56689
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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
Farnsworth Bancorp, Inc.
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(Name of Small Business Issuer in Its Charter)
New Jersey 6035 22-3591051
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(State or Other Jurisdiction (Primary SIC No.) (I.R.S. Employer
of Incorporation or Organization) Identification No.)
789 Farnsworth Avenue, Bordentown, New Jersey 08505
(609) 298-0723
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(Address and Telephone Number of Principal Executive Offices
and Principal Place of Business)
Mr. Gary N. Pelehaty
President and Chief Executive Officer
Farnsworth Bancorp, Inc.
789 Farnsworth Avenue, Bordentown, New Jersey 08505
(609) 298-0723
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(Name, Address and Telephone Number of Agent for Service)
Please send copies of all communications to:
John J. Spidi, Esq.
Jean A. Milner, Esq.
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
1301 K Street, N.W., Suite 700 East, Washington, D.C. 20005
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
As soon as practicable after this registration statement becomes effective.
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PROSPECTUS SUPPLEMENT
Supplement to the Farnsworth Bancorp, Inc.
Prospectus dated June 12, 1998
FARNSWORTH BANCORP, INC.
COMMON STOCK, $0.10 PAR VALUE
PEOPLES SAVINGS BANK
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN AND TRUST
(10,645 SHARES OF COMMON STOCK AND PARTICIPATION THEREIN)
This Prospectus Supplement relates to the offer and sale to
participants (the "Participants") under the Peoples Savings Bank Employees'
Savings & Profit Sharing Plan (the "Plan") of participation interests offered
under the Plan and of a maximum of 10,645 shares of common stock of Farnsworth
Bancorp, Inc., par value $0.10 per share (the "Common Stock"), as set forth
herein.
In connection with the proposed conversion of the Peoples Savings Bank
(the "Bank") from a federally chartered mutual savings bank to a federally
chartered stock savings bank (the "Conversion"), the Plan has been amended
effective June 1, 1998, to permit the investment of Plan assets in various
participant directed investment alternatives, including investment in Common
Stock of Farnsworth Bancorp, Inc. (the "Company"). The Plan will permit
Participants to direct the trustee of the Plan (the "Trustee") to purchase
Common Stock with Plan assets which are attributable to such Participants. This
Prospectus Supplement relates to the one time election of a Participant to
direct the purchase of Common Stock under the Plan in connection with the
Conversion and to the purchase of the Common Stock under the Plan thereafter in
the open market.
The Prospectus dated June 12, 1998 of the Company (the "Prospectus"),
which is attached to this Prospectus Supplement, includes detailed information
with respect to the Conversion, the Common Stock, and the financial condition,
results of operation, and business of the Bank. This Prospectus Supplement,
which provides detailed information with respect to the Plan, should be read
only in conjunction with the Prospectus.
For a discussion of certain factors that should be considered by each
Participant, see "Special Considerations" in 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 ANY STATE SECURITIES COMMISSION, NOR HAS SUCH
COMMISSION, OFFICE, OR OTHER AGENCY OR ANY STATE SECURITIES 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 AND THE PARTICIPATION INTERESTS UNDER THE
PLAN 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 June 12, 1998.
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No person has been authorized to give any information or to make any
representations other than those contained in the Prospectus or this Prospectus
Supplement, and, if given or made, such information or representations must not
be relied upon as having been authorized by the Company, the Bank, or the Plan.
This Prospectus Supplement does not constitute an offer to sell or solicitation
of an offer to buy any securities in any jurisdiction to any person to whom it
is unlawful to make such offer or solicitation in such jurisdiction. Neither the
delivery of this Prospectus Supplement and the Prospectus nor any sale made
hereunder shall under any circumstances create any implication that there has
been no change in the affairs of the Bank or the Plan since the date hereof, or
that the information herein contained or incorporated by reference is correct as
of any time subsequent to the date hereof. This Prospectus Supplement should be
read only in conjunction with the Prospectus that is attached hereto and should
be retained for future reference.
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TABLE OF CONTENTS
The Offering................................................................1
Securities Offered.................................................1
Election to Purchase Common Stock in Connection
with the Conversion...........................................1
Value of Participation Interests...................................1
Method of Directing Investments....................................1
Time for Directing Investment......................................2
Irrevocability of Investment Direction.............................2
Direction to Purchase Common Stock After the Conversion............2
Purchase Price of Common Stock.....................................2
Nature of Participant's Interest in the
Common Stock..............................................3
Voting and Tender Rights of Common Stock...........................3
Minimum Investment.................................................3
Description of the Plan.....................................................3
General............................................................3
Eligibility and Participation......................................4
Contributions and Benefits Under the Plan..........................4
Limitations on Contributions.......................................5
Investment of Plan Assets..........................................7
Employer Stock Fund................................................8
Investment Accounts................................................9
Benefits Under the Plan...........................................10
Withdrawals and Distributions From the Plan.......................10
Administration of the Plan........................................13
Reports to Plan Participants......................................14
Amendment and Termination.........................................14
Merger, Consolidation, or Transfer................................14
Federal Income Tax Consequences...................................14
ERISA and Other Qualifications....................................16
Restrictions on Resale............................................16
SEC Reporting and Short-Swing Liability...........................17
Additional Information............................................18
Legal Opinions.............................................................18
Investment Election Form...........................................Appendix A
Change of Investment Allocation Form...............................Appendix B
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THE OFFERING
Securities Offered
The securities offered hereby are participation interests in the Plan
and up to 10,645 shares (assuming the actual purchase price is $10 per share) of
Common Stock which may be acquired by the Plan for the accounts of employees
participating in the Plan. The Company is the issuer of the Common Stock. Only
employees of the Bank who meet the eligibility requirements under the Plan may
participate in the Plan. Information with regard to the Plan is contained in
this Prospectus Supplement and information with regard to the Conversion and the
financial condition, results of operation, and business of the Bank is contained
in the attached Prospectus. The address of the principal executive office of the
Bank is 789 Farnsworth Avenue, Bordentown, New Jersey 08505-2101. The Bank's
telephone number is (609) 298-0723.
Election to Purchase Common Stock in Connection with the Conversion
In connection with the Bank's Conversion, the Plan has been amended to
permit each Participant to direct that all or part of the funds which represent
his or her beneficial interest in the assets of the Plan may be transferred to a
new investment fund ("the Employer Stock Fund") and which will used to purchase
Common Stock issued in connection with the Conversion. Participants will also be
permitted to direct ongoing purchases of Common Stock under the Plan after the
Conversion. See "Direction to Purchase Common Stock After Conversion." The
Plan's Trustee will follow the Participants' investment directions. Amounts not
transferred to the Employer Stock Fund will remain invested in the other
investment funds of the Plan as directed by the Participant (see "Investment of
Plan Assets" herein).
Value of Participation Interests
The assets of the Plan were valued as of June 30, 1998, and each
Participant was informed of the value of his or her beneficial interest in the
Plan. This value represented the market value as of June 30, 1998 of past
contributions to the Plan by the Bank and by the Participants and earnings
thereon, less previous withdrawals, if any. Participants may direct up to 100%
of the value of their account assets to invest in the Employer Stock Fund.
However, in connection with the initial offering of Common Stock, Participants
who elect to purchase Common Stock in connection with the Conversion are
required to invest a minimum amount of their Account assets in the Employer
Stock Fund (see "Minimum Investment" herein).
Method of Directing Investments
Appendix A of this Prospectus Supplement includes a form to direct a
transfer to the Employer Stock Fund (the "Investment Form") of all or a portion
of a Participant's account ("Account") under the Plan. Appendix B of this
Prospectus Supplement includes Pentegra's Form 7 -- Change of Investment
Allocation ("Form 7"). If a Participant wishes to transfer all or part of his or
her beneficial interest in the assets of the Plan to the purchase of Common
Stock issued in connection with the Conversion, he or she should indicate that
investment decision on the Investment Form and Form 7. The Investment Form and
Form 7 must be properly signed by the Participant in order for such Investment
Form to be honored by the Plan Trustee. Additionally, a Participant may indicate
the directed investment of future contributions under the Plan for investment in
the Employer Stock Fund. If a Participant does not wish
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to make an investment election to purchase Common Stock under the Plan in the
Conversion, or thereafter, he or she does not need to take any action.
Time for Directing Investment
The deadline for submitting the Investment Form and Form 7 directing
the transfer of amounts to the Employer Stock Fund in order to purchase Common
Stock issued in connection with the Conversion is ___________ ___, 1998. The
Investment Form and Form 7, which are both required to be completed correctly by
a Participant at the time such forms are submitted, must be returned to the
Bank's Personnel Department by 12:00 p.m. (local time) on ___________ ___, 1998.
Subsequent to the Conversion, Participants will continue to be able to
direct the investment of their Accounts under the Plan in the Employer Stock
Fund and in the other investment alternatives, as detailed below.
Irrevocability of Investment Direction
A Participant's direction to transfer amounts credited to such
Participant's Account in the Plan to the Employer Stock Fund in order to
purchase shares of Common Stock in connection with the Conversion shall be
irrevocable as of noon on ___________ ___, 1998. If a Participant fails to
submit a completed Investment Form and Form 7 on or before noon on __________
___, 1998, such Participant will not be allowed to direct his or her Account to
purchase Common Stock in the Company's initial public offering. However,
Participants will be able to direct their Accounts to purchase Common Stock
after the Conversion by directing amounts in their Accounts into the Employer
Stock Fund.
Direction to Purchase Common Stock After the Conversion
Following completion of the Conversion, a Participant shall be
permitted to direct that a certain percentage of such Participant's interests in
the Trust Fund be transferred to the Employer Stock Fund and invested in Common
Stock, or to the other investment funds available under the Plan. Alternatively,
a Participant may direct that a certain percentage of such Participant's
interest in the Employer Stock Fund be transferred to the Trust Fund to be
invested in the other investment funds available in accordance with the terms of
the Plan. Participants will be permitted to direct that future contributions
made to the Plan by or on their behalf will be invested in the Employer Stock
Fund investing in the Common Stock. Following the initial election, the
allocation of a Participant's interest in the Employer Stock Fund may be changed
daily by filing a Change of Investment Allocation Form with the Plan
Administrator or by calling Pentegra's voice response unit at (800) 433-4422 and
changing their investment allocation by phone.
Purchase Price of Common Stock
The funds transferred to the Employer Stock Fund for the purchase of
Common Stock in connection with the Conversion will be used by the Trustee to
purchase shares of Common Stock. The price paid for such shares of Common Stock
will be the same price as is paid by all other persons who purchase shares of
Common Stock in the Conversion.
Account assets directed for investment in the Employer Stock Fund after
the Conversion shall be invested by the Trustee to purchase shares of Common
Stock in open market transactions. The price paid
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by the Trustee for shares of Common Stock in the Conversion, or otherwise, will
not exceed "adequate consideration" as defined in Section 3(18) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA").
Nature of Participant's Interest in the Common Stock
The Common Stock will be held in the name of the Trustee for the Plan,
as trustee. Each Participant has an allocable interest in the investment funds
of the Plan but not in any particular assets of the Plan. Accordingly, a
specific number of shares of Common Stock will not be directly attributable to
the Account of any Participant. Dividend rights associated with the Common Stock
held by the Employer Stock Fund shall be allocated to such Employer Stock Fund.
Any increase (or decrease) in the value of such fund attributed to dividend
rights shall be reflected in a Participant's allocable interest in the Employer
Stock Fund.
Voting and Tender Rights of Common Stock
The Trustee generally will exercise voting and tender rights
attributable to all Common Stock held by the Trust as directed by Participants
with interests in the Employer Stock Fund. With respect to each matter as to
which holders of Common Stock have a right to vote or tender, each Participant
will be allocated a number of voting or tender instruction rights reflecting
such Participant's proportionate interest in the Employer Stock Fund. The number
of shares of Common Stock held in the Employer Stock Fund that are voted or
tendered in the affirmative and negative on each matter shall be determined by
the number of voting instruction rights or tender instruction rights exercised
in the affirmative and negative, respectively, from the Participants. With
respect to shares for which no voting instruction rights or tender instruction
rights are received by the Trustee, the Trustee shall vote or tender such shares
within its discretion as a fiduciary under the Plan or as directed by the Plan
Administrator.
Minimum Investment
The minimum investment of assets directed by a Participant for the
purchase of Common Stock in the Conversion shall be $250.00 and may only be
specified in increments of $10.00 Funds may be directed for the purchase of such
Common Stock attributable to a Participant's Account whether or not such Account
assets are 100% vested at the time of such investment election. With respect to
investment in the Employer Stock Fund after the Conversion, there is no minimum
level of investment specific to this investment fund.
DESCRIPTION OF THE PLAN
General
The Bank adopted a multiple employer defined contribution plan (the
"Financial Institutions Thrift Plan") effective April 1, 1994. The Bank
terminated its participation in the Financial Institutions Thrift Plan and
adopted the Plan effective June 1, 1998, in order to permit the investment of
Plan assets in Common Stock. The Plan is a deferred compensation arrangement
established in accordance with the requirements under Section 401(a) and Section
401(k) of the Internal Revenue Code of 1986 (the "Code"). The Plan will be
submitted to the Internal Revenue Service (the "IRS") in a timely manner for a
determination that the Plan is qualified under Section 401(a) of the Code and
that its trust is qualified under Section 501(a) of the Code. The Bank intends
that the Plan, in operation, will comply with the
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requirements under Section 401(a) and Section 401(k) of the Code. The Bank will
adopt any amendments to the Plan that may be necessary to ensure the continued
qualified status of the Plan under the Code and applicable Treasury Regulations.
Employee Retirement Income Security Act. The Plan is an "individual
account plan" other than a "money purchase pension plan" within the meaning of
ERISA. As such, the Plan is subject to all of the provisions of Title I
(Protection of Employee Benefit Rights) and Title II (Amendments to the Internal
Revenue Code Relating to Retirement Plans) of ERISA, except the funding
requirements contained in Part 3 of Title I of ERISA, which by their terms do
not apply to an individual account plan (other than a money purchase plan). The
Plan is not subject to Title IV (Plan Termination Insurance) of ERISA. Neither
the funding requirements contained in Part 3 of Title I of ERISA nor the plan
termination insurance provisions contained in Title IV of ERISA will be extended
to Participants (as defined below) or beneficiaries under the Plan.
APPLICABLE FEDERAL LAW REQUIRES THE PLAN TO IMPOSE SUBSTANTIAL
RESTRICTIONS ON THE RIGHT OF A PLAN PARTICIPANT TO WITHDRAW AMOUNTS HELD FOR HIS
OR HER BENEFIT UNDER THE PLAN PRIOR TO THE PARTICIPANT'S TERMINATION OF
EMPLOYMENT WITH THE BANK. A SUBSTANTIAL FEDERAL TAX PENALTY MAY ALSO BE IMPOSED
ON WITHDRAWALS MADE PRIOR TO THE PARTICIPANT'S ATTAINMENT OF AGE 59-1/2,
REGARDLESS OF WHETHER SUCH A WITHDRAWAL OCCURS DURING HIS OR HER EMPLOYMENT WITH
THE BANK OR AFTER TERMINATION OF EMPLOYMENT.
Reference to Full Text of Plan. The statements contained in this
Prospectus Supplement are summaries of certain provisions of the Plan. They are
not complete and are qualified in their entirety by the full text of the Plan
which is filed as an exhibit to the registration statement filed with the
Securities and Exchange Commission. Copies of the Plan are available for
inspection to all employees by filing a request with the Plan Administrator.
Each employee is urged to read carefully the full text of the Plan.
Eligibility and Participation
All employees of the Bank, who are at least 21 years of age, other than
those who are included in a bargaining unit where retirement benefits have been
the subject of good faith bargaining, are eligible to participate in the Plan as
of the 1st of January or July following completion of one year of service
(during which the employee works at least 1,000 hours during a 12-month period)
with the Bank. As of December 31, 1997, there were approximately six (6)
employees eligible to participate in the Plan and six (6) employees had elected
to participate in the Plan.
Contributions and Benefits Under the Plan
Employee Contributions. Each Participant in the Plan is permitted to
elect to reduce his monthly Salary (as defined below) pursuant to a "Salary
Reduction Agreement" by an amount not less than 1% and not more than 15% and
have that amount ("Elective Deferral") contributed to the Plan on such
Participant's behalf. Changes in the level of such Elective Deferrals may be
made to be effective as of the following pay period. Participants may suspend
such Elective Deferrals at any time. Such amounts are credited to the
Participant's "Salary Reduction Account." For purposes of the Plan, "Salary"
means a Participant's total taxable compensation as reported on his or her Form
W-2 (exclusive of any compensation deferred from a prior year). A Participant
may elect to modify the amount contributed to
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the Plan under such Participant's Salary Reduction Agreement each pay period by
providing notice to the Plan Administrator in accordance with procedures
established by the Plan Administrator from time to time. Elective Deferrals are
transferred by the Bank to the Trustee of the Plan.
Matching Contributions. The Bank will contribute a matching
contribution ("Matching Contributions") in addition to each Participant's
Elective Deferral of up to 50% of the amount of a Participant's Elective
Deferral to a maximum of 6% of the Participant's Salary. Such Matching
Contributions are subject to revision by the Bank from time to time. Such
Matching Contributions shall be subject to the applicable vesting schedule noted
hereinafter.
Limitations on Contributions
Limitations on Annual Additions and Benefits. Pursuant to the
requirements of the Code, the Plan provides that the amount of contributions and
forfeitures allocated to each Participant's Salary Reduction Account during any
Plan Year may not exceed the lesser of 25% of the Participant's ss. 415
Compensation for the Plan Year or $30,000 (adjusted for increases in the cost of
living as permitted by the Code). A Participant's ss. 415 Compensation is a
Participant's compensation, excluding any employer contribution to the Plan or
to any other plan of deferred compensation or any distributions from a plan of
deferred compensation. In addition, annual additions are limited to the extent
necessary to prevent the limitations for the combined qualified plans of the
Bank from being exceeded. To the extent that these limitations would be exceeded
by reason of excess annual additions with respect to a Participant, such excess
will be disposed of as follows:
(i) Any excess amount in the Participant's Account will be
used to reduce the Bank's contributions for such Participant in the
next limitation year, and each succeeding limitation year if necessary;
(ii) If an excess amount still exists, and the Participant is
not covered by the Plan at the end of the limitation year, the excess
amount will be held unallocated in a suspense account which will then
be applied to reduce future Bank contributions for all remaining
Participants in the next limitation year, and each succeeding
limitation year if necessary; and
(iii) If a suspense account is in existence at any time during
the limitation year, the Participant will not receive an allocation of
investment gains and losses.
Limitation on Employee Contributions. The amount of a Participant's
Elective Deferrals (when aggregated with any elective deferrals of the
Participant under a simplified employee pension plan or a tax-deferred annuity),
on an annual basis, may not exceed $10,000 adjusted for increases in the cost of
living as permitted by the Code. Contributions in excess of this limitation
("excess deferrals") will be included in the Participant's gross income for
federal income tax purposes in the year they are made. In addition, any such
excess deferral will again be subject to federal income tax when distributed by
the Plan to the Participant, unless the excess deferral (together with any
income allocable thereto) is distributed to the Participant not later than the
first April 15th following the close of the taxable year in which the excess
deferral is made. Any income on the excess deferral that is distributed not
later than such date shall be treated, for federal income tax purposes, as
earned and received by the Participant in the taxable year in which the excess
deferral is made.
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Limitation on Plan Contributions for Highly Compensated Employees.
Section 401(k) of the Code limits the amount of Elective Deferrals that may be
made to the Plan in any Plan Year on behalf of Highly Compensated Employees
(defined below) in relation to the amount of Elective Deferrals made by or on
behalf of all other employees eligible to participate in the Plan. Specifically,
the actual deferral percentage (i.e., the average of the ratios, calculated
separately for each eligible employee in each group, by dividing the amount of
Elective Deferrals credited to the Salary Reduction Account of such eligible
employee by such eligible employee's compensation for the Plan Year) of the
Highly Compensated Employees may not exceed the greater of (i) 125% of the
actual deferral percentage of all other eligible employees, or (ii) the lesser
of (a) 200% of the actual deferral percentage of all other eligible employees,
or (b) the actual deferral percentage of all other eligible employees plus two
percentage points. In addition, the actual contribution percentage for such Plan
Years (i.e., the average of the ratios calculated separately for each eligible
employee in each group, by dividing the amount of voluntary employee and
employer matching contributions credited to the Account of such eligible
employee by such eligible employee's compensation for the Plan Year) of the
Highly Compensated Employees may not exceed the greater of (i) 125% of the
actual contribution percentage of all other eligible employees, or (ii) the
lesser of (a) 200% of the actual contribution percentage of all other eligible
employees, or (b) the actual contribution percentage of all other eligible
employees plus two percentage points.
In general, a Highly Compensated Employee includes any employee who,
during the Plan Year (1) was a 5% owner (i.e., owns directly or indirectly more
than 5% of the stock of an employer, or stock possessing more than 5% of the
total combined voting power of all stock of an employer), or (2) received
compensation from an employer for the preceding year in excess of $80,000 and,
if the employer so elects, was in the top 20% of employees by compensation for
such year. The dollar amounts in the foregoing sentence adjust annually to
reflect increases in the cost of living.
In order to prevent the disqualification of the Plan, any amount
contributed by Highly Compensated Employees that exceed the average deferral
limitation in any Plan Year ("excess contributions"), together with any income
allocable thereto, must be distributed to such Highly Compensated Employees
before the close of the following Plan Year. However, the Bank will be subject
to a 10% excise tax on any excess contributions unless such excess
contributions, together with any income allocable thereto, either are
recharacterized or are distributed before the close of the first 2 1/2 months
following the Plan Year to which such excess contributions relate.
Top-Heavy Plan Requirements. If for any Plan Year the Plan is a
Top-Heavy Plan (as defined below), then (i) the Bank may be required to make
certain minimum contributions to the Plan on behalf of non-key employees (as
defined below), and (ii) certain additional restrictions would apply with
respect to the combination of annual additions to the Plan and projected annual
benefits under any defined benefit plan maintained by the Bank.
In general, the Plan will be regarded as a "Top-Heavy Plan" for any
Plan Year if, as of the last day of the preceding Plan Year, the aggregate
balance of the Accounts of Participants who are Key Employees exceeds 60% of the
aggregate balance of the Accounts of all Participants. Key Employees generally
include any employee who, at any time during the Plan Year or any of the four
preceding Plan Years, is (1) an officer of the Bank having annual compensation
in excess of $60,000 who is in an administrative or policy-making capacity, (2)
one of the ten employees having annual compensation in excess of $30,000 and
owning, directly or indirectly, the largest interests in the Company, (3) a 5%
owner of the Bank, (i.e., owns directly or indirectly more than 5% of the stock
of the Company, or stock
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possessing more than 5% of the total combined voting power of all stock of the
Company), or (4) a 1% owner of the Company having annual compensation in excess
of $160,000.
Investment of Plan Assets
All amounts credited to Participants' Accounts under the Plan are held
in the Plan's trust (the "Trust") which is administered by the Trustee appointed
by the Bank's Board of Directors. Prior to the Conversion, all Plan assets are
invested in the funds listed below, except for the Employer Stock Fund. Upon the
Conversion, the Accounts of a Participant held in Trust under the Plan will be
invested by the Trustee, at the direction of the Participant, in the following
funds, including the Employer Stock Fund:
a. S&P 500 Stock Fund
b. Stable Value Fund
c. S&P MidCap Stock Fund
d. Money Market Fund
e. Government Bond Fund
f. Income Plus Asset Allocation Fund
g. Growth and Income Asset Allocation Fund
h. Growth Asset Allocation Fund
i. International Stock Fund
A brief summary of such funds is as follows:
S&P 500 Stock Fund: Invests in the stocks of a broad array of
established U.S. companies. Its objective is long-term: to earn higher returns
by investing in the largest companies in the U.S. economy.
Stable Value Fund: Invests primarily in Guaranteed Investment Contracts
and Synthetic Guaranteed Investment Contracts. Its objective is
short-to-intermediate term: to achieve a stable return over short to
intermediate periods of time while preserving the value of a Participant's
investment.
S&P MidCap Stock Fund: Invests in the stocks of mid-sized U.S.
companies. Its objective is long-term: to earn higher returns which reflect the
growth potential of such companies.
Money Market Fund: Invests in a broad range of high-quality short-term
instruments. Its objective is short-term to achieve competitive short-term rates
or return while preserving the value of the Participant's principal.
Government Bond Fund: Invests in U.S. Treasury bonds with a maturity of
20 years or more. Its objective is long-term: to earn a higher level of income
along with the potential for capital appreciation.
Income Plus Asset Allocation Fund: Invests approximately 80% of its
portfolio in a combination of stable value investments and U.S. bonds. The
balance is invested in U.S. and international stocks. Its objective is
intermediate-term: to preserve the value of a Participant's investment over
short periods of time and to offer some potential for growth.
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Growth and Income Asset Allocation Fund: Invests in U.S. domestic and
international stocks, U.S. domestic bonds, and stable value investments. Its
objective is intermediate-term: to provide a balance between the pursuit of
growth and protection from risk.
Growth Asset Allocation Fund: Invests the majority of its assets in
stocks -- domestic as well as international. Its objective is long-term: to
pursue high growth of a Participant's investment over time.
International Stock Fund: Invests in over 1,000 foreign stocks in 20
countries. Its objective is long-term: to offer the potential return of
investing in the stocks of established non-U.S. companies, as well as the
potential risk-reduction of broad diversification.
Employer Stock Fund
The Employer Stock Fund will consist of investments in Common Stock
made on the effective date of the Conversion. Cash dividends paid on Common
Stock held in the Employer Stock Fund will be credited to a cash dividend
subaccount for each Participant investing in the Employer Stock Fund. On the
occasion of a payment of a cash dividend, the Trustee may use the dividend to
purchase additional shares of Common Stock. The Trustee will, to the extent
practicable, use all amounts held by it in the Employer Stock Fund (except the
amounts credited to cash dividend subaccounts) to purchase shares of Common
Stock of the Company as of the effective date of the Conversion. Following the
Conversion, the Employer Stock Fund may purchase shares of Common Stock in the
open market or from Participants' Accounts directing the sale of such Account
assets. Pending investment in Common Stock, assets held in the Employer Stock
Fund will be placed in bank deposits or other short-term investments.
When Common Stock is purchased in the Conversion no sales commissions
will be paid. The Bank expects to pay any transfer fees and other expenses
incurred in the purchase of Common Stock for the Employer Stock Fund. A
Participant's Account will be adjusted to reflect changes in the value of shares
of Common Stock resulting from stock dividends, stock splits, and similar
changes.
As of the date of this Prospectus Supplement, none of the shares of
Common Stock have been issued or are outstanding and there is no established
market for the Common Stock. Accordingly, there is no record of the historical
performance of the Employer Stock Fund.
In connection with the Conversion, Participants may, prior to the
expiration of the Subscription Offering being conducted by the Company in
connection with the Conversion, elect to liquidate all or part of their
investments in the other investment funds under the Plan and transfer the
liquidation proceeds to the Employer Stock Fund. See "Time for Directing
Investment." Such an investment election will be evidenced by a properly signed
and timely delivered Investment Form and Form 7. The Trustee will then subscribe
to purchase in the Conversion the maximum number of shares of Common Stock of
the Holding Company that may be purchased by Participants with the amounts
allocated to the Employer Stock Fund as of the end of the subscription period.
In all instances, purchases by Participants shall be subject to the individual
purchase limitations set forth in the Bank's Plan of Conversion. If there is not
enough Common Stock in the Conversion to fill all subscriptions, the Common
Stock would be apportioned and the Plan may not be able to purchase all of the
Common Stock requested by the Participants. In such case, the Trustee will
purchase shares of Common Stock in the open market after the Conversion to
fulfill Participants' requests. Such purchases may be at prices higher than the
purchase price in the Conversion.
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The Bank or the Plan Trustee may adopt investment guidelines, which may
limit or restrict a Participant's investment in the Employer Stock Fund. In no
event may any Participant purchase in the aggregate shares of Common Stock
through the Employer Stock Fund, or otherwise, in an amount in excess of 6,000
shares of Common Stock being offered by the Company in the Conversion. (See the
discussion under "The Conversion -- Limitations on Purchases of Shares" in the
accompanying Prospectus for clarification of purchases aggregated for purposes
of this purchase limitation.)
Each Participant who makes an election to direct investment of assets
under the Employer Stock Fund may liquidate such investment at a future date, in
whole, or in part, by filing a Change of Investment Allocation Form with
Pentegra, or by using Pentegra's voice response unit by calling (800) 433-4422,
in accordance with established procedures to dispose of such Plan investment and
reinvest the net proceeds in an alternative investment under the Plan. The
Trustee shall complete such sale as soon as administratively feasible. The
proceeds of such sale, net of expenses, shall be allocated to the Participant's
Account and reinvested in accordance with the Plan.
Please refer to the section "Restrictions on Resale" contained herein
for additional information related to the sale of Common Stock held under the
Employer Stock Fund as an investment in a Participant's Account.
Investments in the Employer Stock Fund may involve certain special
risks related to investment in Common Stock of the Company. For a discussion of
these risk factors, see "Special Considerations" in the Prospectus. Please note
that investment in the Employer Stock Fund is not an investment in a savings
account or certificate of deposit, and such investment in the Common Stock
through the Employer Stock Fund is not insured by the FDIC or any other
regulatory agency. Further, no assurances can be given with respect to the price
at which such Common Stock may be sold in the future.
Investment Accounts
The Trust assets are invested by the Trustee pursuant to Participants'
directions, as described below. Each investment fund is valued as of the end of
each business day.
Each Participant directs that the contributions made shall be invested
to purchase units for his or her credit in one or more of the above listed
funds. Participants may elect a new investment mix for future contributions to
the Plan once per business day. Participants are entitled to designate what
percentage of employee contributions made on their behalf will be invested in
the various investment funds offered by the Plan. Reallocation and reinvestment
of previously invested contributions may be made daily. To the extent that a
Participant fails to make an investment direction, his or her accounts are
invested in units of the Money Market Fund.
The Plan provides that a Participant may direct the Trustee to invest
all or a portion of his or her Account in the investment funds set forth above.
In addition, as of [DATE], a Participant may make an investment election to
invest all, or a portion thereof, of a Participant's Account in the Employer
Stock Fund for the purchase of Common Stock to be purchased in the Conversion,
or thereafter, as described below. Participants may change their investment
directions or direct a transfer among investment funds, provided that changes of
investment direction or directions to transfer are made in accordance with the
terms of the Plan.
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A Participant may elect to have both past and future contributions and
additions to the Participant's accounts invested in such other accounts as set
forth above. These elections will be effective, provided such notice is filed in
accordance with procedures established by the Plan Administrator from time to
time. Any amounts credited to a Participant's Account for which investment
directions are not given will be invested in accordance with the terms of the
Plan.
The net gain (or loss) of the invested funds from investments
(including interest payments, dividends, realized and unrealized gains and
losses on securities, and expenses paid from the Trust) will be determined daily
during the Plan Year. For purposes of such allocations, all assets of the Trust
are valued at their fair market value.
Contributions under the Plan have been invested in the various
investment accounts available for investment under the funds as described
herein. The annual percentage return on these funds for calendar years 1997,
1996 and 1995 was approximately:
Fund 1997 1996 1995
- ---- ---- ---- ----
Money Market Fund 5.5% 5.6% 6.2%
Stable Value Fund 6.2% 6.5% 6.8%
Government Bond Fund 15.4% (2.3%) 32.0%
S&P 500 Stock Fund 32.7% 22.3% 36.9%
S&P MidCap Stock Fund 31.5% 18.6% 30.2%
International Stock Fund 3.6% 10.6% 15.0%
Income Plus Asset Allocation Fund 8.9% 8.3% 12.9%
Growth Asset Allocation Fund 19.0% 18.0% 31.4%
Growth & Income Asset Allocation Fund 13.6% 12.3% 20.5%
Employer Stock Fund N/A N/A N/A
Benefits Under the Plan
Vesting. A Participant, at all times, has a fully vested,
nonforfeitable interest in any contributions that such Participant makes to the
Plan, including the earnings thereon.
A Participant will become vested and have a nonforfeitable interest in
contributions from the Bank based on the number of years of service and the
vesting schedule set forth below.
Number of Full Years of Service Nonforfeitable % of Account
------------------------------- ---------------------------
1 25%
2 50%
3 75%
4 100%
Withdrawals and Distributions From the Plan
General. All payments in respect of a Participant's Account shall be
made in cash from the Plan's Trust fund and in accordance with the provisions of
the Plan. The amount of payment will be determined in accordance with the Unit
(as defined in the Plan) values on the valuation date coinciding with or next
following the date proper notice is filed with the Administrator, unless
following such
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valuation date a decrease in the Unit values of the Participant's investment in
any of the available investment funds occurs prior to the date such Units of the
Participant are redeemed in which case that part of the payment which must be
provided through the sale of existing Units shall equal the value of such Units
determined on the date of redemption which date shall occur as soon as
administratively practicable on or following the valuation date such proper
notice is filed with the Administrator. The redemption date Unit value with
respect to a Participant's investment in any of the available investment funds
shall equal the value of a Unit in such investment fund, as determined in
accordance with the valuation method applicable to Unit investments in such
investment fund on the date the Participant's investment is redeemed.
Payments will generally be made in a lump sum as soon as practicable
after such valuation date or date of redemption, as may be applicable, subject
to any applicable restriction on redemption imposed on amounts invested in any
of the available Investment Funds.
Any partial withdrawal shall be deemed to come initially from the
Participant's after-tax contributions made prior to January 1, 1987, then from
the Participant's after-tax contributions made after December 31, 1986 plus
earnings on all of the Participant's after-tax contributions. Any partial
withdrawal amounts exceeding the two preceding categories will be deemed to come
from additional categories as provided in Section 7.1 of the Plan.
Withdrawals Prior to Termination of Employment. The Bank may, at its
option, permit Participants to make withdrawals from one or more of the portions
of their Accounts while employed by the Bank under the terms and provisions
described in the Plan.
To the extent permitted by the Bank, a Participant may voluntarily
withdraw some or all of his or her Account (other than his or her Elective
Deferrals and qualified nonelective contributions treated as 401(k) deferrals
except as hereinafter permitted) while in employment by filing a notice of
withdrawal with the Administrator. Only one in-service withdrawal may be made in
any Plan Year from each of the rollover amount of the Participant's Account and
the remainder of the Participant's Account. This restriction shall not, however,
apply to a withdrawal in conjunction with a hardship withdrawal.
Notwithstanding the foregoing paragraph, a Participant may not withdraw
any matching, supplemental, or qualified nonelective contributions unless (i)
the Participant has completed 60 months of participation in the Plan; (ii) the
withdrawal occurs at least 24 months after such contributions were made by the
Bank (iii) the Bank terminates the Plan without establishing a qualified
successor plan; or (iv) the Participant dies, is disabled, retires, attains age
59 1/2 or terminates employment with the Bank. For purposes of the preceding
requirements, if the Participant's Account includes amounts which have been
transferred from a defined contribution plan established prior to the adoption
of the Plan by the Bank, the period of time during which amounts were held on
behalf of such Participant and the periods of participation of such Participant
under such defined contribution plan shall be taken in account.
A Participant may make a withdrawal of his Elective Deferrals,
qualified nonelective contributions which are treated as elective deferrals, and
any earnings credited thereto prior to January 1, 1989, prior to attaining age
59 1/2, provided that the withdrawal is solely on account of an immediate and
heavy financial need and is necessary to satisfy such financial need. The term
"immediate and heavy financial need" shall be limited to the need of funds for
(i) the payment of medical expenses (described in Section 213(d) of the Code)
incurred by the Participant, the Participant's spouse, or any of the
Participant's dependents (as defined in Section 152 of the Code), (ii) the
payment of tuition and room and board for
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<PAGE>
the next 12 months of post-secondary education of the Participant, the
Participant's spouse, the Participant's children, or any of the Participant's
dependents (as defined in Section 152 of the Code), (iii) the purchase
(excluding mortgage payments) of a principal residence for the Participant, or
(iv) the prevention of eviction of the Participant from his principal residence
or the prevention of foreclosure on the mortgage of the Participant's principal
residence. The amount of any hardship withdrawal shall not exceed the amount
required to meet the demonstrated financial hardship, including any amounts
necessary to pay any federal income taxes and penalties reasonably anticipated
to result from the distribution as certified to the Administrator by the
Participant.
Distributions Upon Termination of Employment. A Participant who
terminates employment with the Bank may request a distribution of his or her
Account at any time thereafter up to attainment of age 70 1/2; provided,
however, such Participant files a request for distribution with the
Administrator. If a Participant does not file such a request, the value of his
or her Account will be paid as soon as practicable after the Participant's
attainment of age 70 1/2, but in no event shall payment commence later than
April 1 of the calendar year following the calendar year in which the
Participant attains age 70 1/2 unless otherwise provided by law. A Participant
may request a distribution of all or a part of his or her Account no more
frequently than once per calendar year by filing the proper request for
distribution with the Administrator.
In lieu of any lump sum payment of his or her total Account, a
Participant who has terminated employment may elect in the request for
distribution to be paid in up to 20 annual installments, provided that a
Participant shall not be permitted to elect an installment period in excess of
his or her remaining life expectancy. The amount of each installment will be
equal to the value of the total Units in the Participant's Account, multiplied
by a fraction, the numerator of which is one and the denominator of which is the
number of remaining annual installments including the one then being paid, so
that at the end of the installment period so elected, the total Account will be
liquidated. The value of the Units will be determined in accordance with the
Unit values on the valuation date on or next following the Administrator's
receipt of the Participant's request for distribution and on each anniversary
thereafter subject to applicable Treasury Regulations under Code Section
401(a)(9). The election to receive installment payments may not be subsequently
changed by the Participant unless written notice is provided to the
Administrator. A Participant may withdraw the balance of the Units in his or her
Account in a lump sum at any time, notwithstanding the fact that the Participant
previously received a distribution in the same calendar year.
Distributions due to Disability. A Participant who is separated from
employment by reason of a disability (as defined by the Plan) may withdraw his
or her total Account balance under the Plan and have such amounts paid to him or
her in accordance with the terms of the Plan. If a disabled Participant becomes
reemployed subsequent to withdrawal of some or all of his or her Account
balance, such Participant may not repay to the Plan any such withdrawn amounts.
Distributions due to Death. If a married Participant dies, his or her
spouse, as beneficiary, will receive a death benefit equal to the value of the
Participant's Account determined on the valuation date on or next following the
Administrator's receipt of notice that such Participant died; provided however,
that if a Participant's spouse had consented in writing to the designation of a
different beneficiary, the Participant's Account will be paid to such designated
beneficiary. If a Participant is not married at the time of his death, his or
her Account will be paid to his or her designated beneficiary.
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<PAGE>
Distributions of Common Stock. Participants receiving a distribution
from the Plan where assets under the Plan have been directed by the Participant
to be invested in the Employer Stock Fund may have such assets distributed in
kind in the form of Common Stock.
Nonalienation of Benefits. Except with respect to federal income tax
withholding and as provided with respect to a qualified domestic relations order
(as defined in the Code), benefits payable under the Plan shall not be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, charge, garnishment, execution, or levy of any kind, either
voluntary or involuntary, and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, charge or otherwise dispose of any rights to
benefits payable under the Plan shall be void.
Plan Loans. A Participant may borrow money from the vested portion of
his or her account. The minimum amount a Participant may borrow is $1,000. The
maximum amount is 50% of a Participant's vested Account balance. A participant
may never borrow more than $50,000 minus the highest outstanding balance on any
individual loan during the last 12 months.
A Participant may take up to five years to repay a general purpose
loan. If the Participant is using the loan to purchase his or her primary
residence, a repayment period of 15 years is permissible. A Participant must
repay the loan through payroll deductions.
If a Participant fails to make any loan repayment when due, his or her
loan will be in default. If such default occurs after the first 12 monthly
payments of the loan have been satisfied, the full amount of the loan will be
due and payable within 60 days of the due date of the last monthly installment
payment. If the outstanding balance of the loan is in default and is not repaid
in the aforementioned time period, the Participant will be deemed to have
received a distribution of said amount.
Administration of the Plan
The Bank, effective June 1, 1998, will administer the Plan. The Trustee
with respect to the Plan is the named fiduciary of the Plan for purposes of
Section 402 of ERISA. The Bank of New York will serve as Trustee and Custodian
for all investment funds under the Plan except the Employer Stock Fund. The
Bank's President, Gary N. Pelehaty, will serve as trustee with respect to the
Employer Stock Fund ("Employer Stock Fund Trustee"). The Plan Administrator is
responsible for the administration of the Plan, interpretation of the provisions
of the Plan, prescribing procedure for filing applications for benefits,
preparation and distribution of information explaining the Plan, maintenance of
plan records, books of account and all other data necessary for the proper
administration of the Plan, and preparation and filing of all returns and
reports relating to the Plan which are required to be filed with the U.S.
Department of Labor and the IRS, and for all disclosures required to be made to
Participants, beneficiaries and others under Sections 104 and 105 of ERISA.
The Trustee receives and holds the contributions to the Plan in Trust
and distributes them to Participants and beneficiaries in accordance with the
terms of the Plan and the directions of the Plan Administrator. The Trustee is
responsible for investment of the assets of the Trust. The address of the Plan
Administrator and the Employer Stock Fund Trustee is 789 Farnsworth Avenue,
Bordentown, New Jersey, 08505. The address of the Bank of New York is One Wall
Street, New York, New York, 10286.
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<PAGE>
Reports to Plan Participants
The Administrator will furnish to each Participant a statement at least
quarterly showing (i) the balance in the Participant's Account as of the end of
that period, (ii) the amount of contributions allocated to the Participant's
Account for that period, and (iii) the adjustments to such Participant's Account
to reflect earnings or losses (if any). Participants investing in the Employer
Stock Fund shall also receive a copy of the Company's Annual Report to
Stockholders and a proxy statement related to stockholder meetings.
Amendment and Termination
It is the intention of the Bank to continue the Plan indefinitely.
Nevertheless, the Bank, within its sole discretion may terminate the Plan at any
time. The Bank reserves the right to make, from time to time, any amendment or
amendments to the Plan that do not cause any part of the Trust to be used for,
or diverted to, any purpose other than the exclusive benefit of Participants or
their beneficiaries; provided, however, that the Bank may make any amendment it
determines necessary or desirable, with or without retroactive effect, to comply
with ERISA.
Merger, Consolidation, or Transfer
In the event of the merger or consolidation of the Plan with another
plan, or the transfer of the Trust assets to another plan, the Plan requires
that each Participant would (if either the Plan or the other plan then
terminated) receive a benefit immediately after the merger, consolidation, or
transfer that is equal to or greater than the benefit he would have been
entitled to receive immediately before the merger, consolidation, or transfer
(if the Plan had then terminated).
Federal Income Tax Consequences
The following discussion is only a brief summary of certain federal
income tax aspects of the Plan which are of general application under the Code
and is not intended to be a complete or definitive description of the federal
income tax consequences of participating in or receiving distributions from the
Plan. The summary is necessarily general in nature and does not purport to be
complete. Moreover, statutory provisions are subject to change, as are their
interpretations, and their application may vary in individual circumstances.
Finally, the consequences under applicable state and local income tax laws may
not be the same as under the federal income tax laws. Participants are urged to
consult their tax advisors with respect to any distribution from the Plan and
transactions involving the Plan.
The Plan will be submitted to the IRS for a determination that it is
qualified under Section 401(a) and 401(k) of the Code, and that the related
Trust is exempt from tax under Section 501(a) of the Code. A plan that is
"qualified" under these sections of the Code is afforded special tax treatment
which include the following: (1) The sponsoring employer is allowed an immediate
tax deduction for the amount contributed to the Plan each year; (2) Participants
pay no current income tax on amounts contributed by the employer on their
behalf; and (3) earnings of the plan are tax-exempt thereby permitting the
tax-free accumulation of income and gains on investments. The Plan will be
administered to comply in operation with the requirements of the Code as of the
applicable effective date of any change in the law. The Bank expects to timely
adopt any amendments to the Plan that may be necessary to maintain the qualified
status of the Plan under the Code.
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<PAGE>
Assuming that the Plan is administered in accordance with the
requirements of the Code and that the IRS issues a favorable determination as
described in the preceding paragraph, participation in the Plan under existing
federal income tax laws will have the following effects:
(a) Amounts contributed to a Participant's Salary Reduction
Account and the investment earnings on this Account are not includable
in a Participant's federal taxable income until such contributions or
earnings are actually distributed or withdrawn from the Plan. Special
tax treatment may apply to the taxable portion of any distribution that
includes Common Stock or qualifies as a Lump Sum Distribution (as
described below).
(b) Income earned on assets held by the Trust will not be
taxable to the Trust.
Lump Sum Distribution. A distribution from the Plan to a Participant or
the beneficiary of a Participant will qualify as a Lump Sum Distribution if it
is made: (i) within one taxable year of the Participant or beneficiary; (ii) on
account of the Participant's death, disability, or separation from service, or
after the Participant attains age 59 1/2; and (iii) consists of the balance to
the credit of the Participant under this Plan and all other profit sharing
plans, if any, maintained by the Bank. The portion of any Lump Sum Distribution
that is required to be included in the Participant's or beneficiary's taxable
income for federal income tax purposes (the "total taxable amount") consists of
the entire amount of such Lump Sum Distribution less the amount of after-tax
contributions, if any, made by the Participant to any other profit sharing plans
maintained by the Bank which is included in such distribution.
Averaging Rules. The portion of the total taxable amount of a Lump Sum
Distribution that is attributable to participation in this Plan or in any other
profit-sharing plan maintained by the Bank (the "ordinary income portion") will
be taxable generally as ordinary income for federal income tax purposes.
However, a Participant who has completed at least five years of participation in
this Plan before the taxable year in which the distribution is made, or a
beneficiary who receives a Lump Sum Distribution on account of the Participant's
death (regardless of the period of the Participant's participation in this Plan
or any other profit-sharing plan maintained by an employer), may elect to have
the ordinary income portion of such Lump Sum Distribution taxed according to a
special averaging rule ("five-year averaging"). The election of the special
averaging rules may apply only to one Lump Sum Distribution received by the
Participant or beneficiary, provided such amount is received on or after the
Participant turns 59 1/2 and the recipient elects to have any other Lump Sum
Distribution from a qualified plan received in the same taxable year taxed under
the special averaging rule. Under a special grandfather rule, individuals who
turned 50 by 1986 may elect to have their Lump Sum Distribution taxed under
either the five-year averaging rule or under the prior law ten-year averaging
rule. Such individuals also may elect to have that portion of the Lump Sum
Distribution attributable to the participant's pre-1974 participation in the
Plan taxed at a flat 20% rate as gain from the sale of capital assets.
Common Stock Included in Lump Sum Distribution. If a Lump Sum
Distribution includes Common Stock, the distribution generally will be taxed in
the manner described above, except that the total taxable amount will be reduced
by the amount of any net unrealized appreciation with respect to such Common
Stock (i.e., the excess of the value of such Common Stock at the time of the
distribution over its cost to the Plan). The tax basis of such Common Stock to
the Participant or beneficiary for purposes of computing gain or loss on its
subsequent sale will be the value of the Common Stock at the time of
distribution less the amount of net unrealized appreciation. Any gain on a
subsequent sale or other taxable disposition of such Common Stock, to the extent
of the amount of net unrealized appreciation at the time of distribution will be
considered either short-term capital gain or long-term capital gain
15
<PAGE>
depending upon the length of the holding period of the Common Stock. The
recipient of a distribution may elect to include the amount of any net
unrealized appreciation in the total taxable amount of such distribution to the
extent allowed by the Treasury Regulations.
Distributions: Rollovers and Direct Transfers to Another Qualified Plan
or to an IRA. Pursuant to a change in the law, effective January 1, 1993,
virtually all distributions from the Plan may be rolled over to another
qualified plan or to an individual retirement account ("IRA") without regard to
whether the distribution is a Lump Sum Distribution or a Partial Distribution.
Effective January 1, 1993, Participants have the right to elect to have the
Trustee transfer all or any portion of an "eligible rollover distribution"
directly to another plan qualified under Section 401(a) of the Code or to an
IRA. If the Participant does not elect to have an "eligible rollover
distribution" transferred directly to another qualified plan or to an IRA, the
distribution will be subject to a mandatory federal withholding tax equal to 20%
of the taxable distribution. An "eligible rollover distribution means any amount
distributed from the Plan except: (i) a distribution that is (a) one of a series
of substantially equal periodic payments (not less frequently than annually)
made for the life (or life expectancy) of the Participant or the joint lives of
the Participant and his or her designated beneficiary, or (b) for a specified
period of ten years or more; (ii) any amount that is required to be distributed
under the minimum distribution rules; and (iii) any other distributions excepted
under applicable federal law. The tax law change described above did not modify
the special tax treatment of Lump Sum Distributions that are not rolled over or
transferred.
Additional Tax on Early Distributions. A Participant who receives a
distribution from the Plan prior to attaining age 59 1/2 will be subject to an
additional income tax equal to 10% of the taxable amount of the distribution.
The 10% additional income tax will not apply, however, to the extent the
distribution is rolled over into an IRA or another qualified plan or the
distribution is (i) made to a beneficiary (or to the estate of the Participant)
on or after the death of the Participant, (ii) attributable to the Participant's
being disabled within the meaning of Section 72(m)(7) of the Code, (iii) part of
a series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the Participant or the joint
lives (or joint life expectancies) of the Participant and his beneficiary, (iv)
made to the Participant after separation from service on account of early
retirement under the Plan after attainment of age 55, (v) made to pay medical
expenses to the extent deductible for federal income tax purposes, (vi) pursuant
to a qualified domestic relations order, or (vii) made to effect the
distribution of excess contributions or excess deferrals.
The foregoing is only a brief summary of certain federal income tax
aspects of the Plan which are of general application under the Code and is not
intended to be a complete or definitive description of the federal income tax
consequences of participating in or receiving distributions from the Plan.
Accordingly, each Participant is urged to consult a tax advisor concerning the
federal, state and local tax consequences of participating in and receiving
distributions from the Plan.
ERISA and Other Qualifications
As noted above, the Plan is subject to certain provisions of ERISA and
will be submitted to the IRS for a determination that it is qualified under
Section 401(a) of the Code.
Restrictions on Resale
Any person receiving shares of Common Stock under the Plan who is an
"affiliate" of the Bank or the Company as the term "affiliate" is used in Rules
144 and 405 under the Securities Act of 1933
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(e.g., directors, officers, and substantial shareholders of the Company) may
reoffer or resell such shares only pursuant to a registration statement filed
under the Securities Act of 1933 or, assuming the availability thereof, pursuant
to Rule 144 or some other exemption of the registration requirements of the
Securities Act of 1933 (the "Securities Act"). Any person who may be an
"affiliate" of the Bank or the Company may wish to consult with counsel before
transferring any Common Stock owned by him. Participants who serve as directors,
officers or 10% stockholders of the Company are advised to consult with counsel
as to the applicability of Section 16 of the 1934 Act which may restrict the
sale of Common Stock where acquired under the Plan, or other sales of Common
Stock. In addition, directors and officers of the Bank may be restricted from
transferring shares purchased in the Conversion for a period of one year in
accordance with regulations of the Office of Thrift Supervision.
Persons who are not deemed to be "affiliates" of the Bank or the
Company at the time of resale will be free to resell any shares of Common Stock
received by them under the Plan, either publicly or privately, without regard to
the Registration and Prospectus delivery requirements of the Securities Act or
compliance with the restrictions and conditions contained in the exemptive rules
thereunder. An "affiliate" is someone who directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control,
with the Bank or the Company. Normally, a director, principal officer or major
shareholder of a corporation may be deemed to be an "affiliate of that
corporation. A person who may be deemed an "affiliate" at the time of a proposed
resale will be permitted to make public resales of the Common Stock only
pursuant to a "reoffer" prospectus or in accordance with the restrictions and
conditions contained in Rule 144. Such sales may be made only though brokers
without solicitation and only at a time when the Company is current in filing
the reports required of it under the 1934 Act.
SEC Reporting and Short-Swing Liability
Section 16 of the 1934 Act imposes reporting and liability requirements
on officers, directors, and persons beneficially owning more than ten percent of
the stock of public companies, such as the Company. Section 16(a) of the 1934
Act requires the filing of reports of beneficial ownership. Within ten days of
becoming a person subject to the reporting requirements of Section 16(a), a Form
3 reporting initial beneficial ownership must be filed with the Securities and
Exchange Commission ("SEC"). Certain changes in beneficial ownership, such as
purchases, sales, gifts, and participation in savings and retirement plans must
be reported periodically, either on a Form 4 within ten days after the end of
the month in which a change occurs, or annually on a Form 5 within 45 days after
the close of the Company's fiscal year. Participation in the Employer Stock Fund
of the Plan by officers, directors, and persons beneficially owning more than
ten percent of the Common Stock of the Company must be reported to the SEC
annually on a Form 5 by such individuals.
In addition to the reporting requirements described above, Section
16(b) of the 1934 Act provides for the recovery by the Company of profits
realized by any officer, director, or any person beneficially owning more than
ten percent of the Common Stock ("Section 16(b) Persons") resulting from the
purchase and sale or sale and purchase of the Common Stock within any six-month
period. The SEC has adopted rules that provide exemption from the profit
recovery provisions of Section 16(b) for participant- directed employer security
transactions within an employee benefit plan, such as the Plan, provided certain
requirements are met. These requirements generally involve restrictions upon the
timing of elections to acquire or dispose of employer securities for the
accounts of Section 16(b) Persons. Except for distributions of Common Stock due
to death, disability, retirement, termination of employment, or
17
<PAGE>
under a qualified domestic relations order, under the Plan, Section 16(b)
Persons are required to hold shares of Common Stock distributed for six months
after receiving such a distribution.
Additional Information
This Prospectus Supplement dated June 12, 1998, is part of the
Prospectus of the Company dated June 12, 1998. This Prospectus Supplement shall
be delivered to Plan Participants in conjunction with the Prospectus and is not
complete unless it is accompanied by the Prospectus dated June 12, 1998.
LEGAL OPINIONS
The validity of the issuance of the Common Stock will be passed upon by
Malizia, Spidi, Sloane & Fisch, P.C., Washington, D.C., which firm acted as
special counsel for the Company and the Bank in connection with the Conversion.
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Exhibit A: Investment Form
<PAGE>
Appendix-A
----------
PEOPLES SAVINGS BANK EMPLOYEES'
SAVINGS & PROFIT SHARING PLAN AND TRUST
------------------------------
Participant Voluntary Investment Election Form
------------------------------
Name of Plan Participant:
-----------------------------
Social Security Number: -----------------------------
1. Instructions.
-------------
In connection with the proposed Conversion of the Peoples Savings Bank
("Bank") from a federally chartered mutual savings bank to a federally chartered
stock savings bank (the "Conversion"), the Bank has adopted the Peoples Savings
Bank Employees' Savings & Profit Sharing Plan ("Plan") to permit Participants to
direct all, or a portion, of the assets attributable to their Participant
Account into a new fund: the Employer Stock Fund. The assets attributable to a
Participant's Account under the Plan transferred at the direction of the
Participant into the Employer Stock Fund will be used to purchase shares of
common stock (the "Common Stock") of Farnsworth Bancorp, Inc. ("Company") to be
issued in the initial stock offering of the Company.
To direct a transfer of all or a part of the funds credited to your
Accounts to the Employer Stock Fund, you should complete and file this form with
Gary N. Pelehaty, at 789 Farnsworth Avenue, Bordentown, New Jersey, 08505, who
will retain this form and return a copy to you. If you need any assistance in
completing this form, please contact Gary N. Pelehaty at (609) 298-0723. If you
do not complete and return this form to the Plan Administrator by __________,
1998, at 12:00 p.m., the funds credited to your Accounts under the Plan will
continue to be invested in accordance with your prior investment direction, or
in accordance with the terms of the Plan if no investment direction has been
provided.
2. Investment Directions.
----------------------
As a Participant in the Plan, I hereby voluntarily elect to direct the
Trustee of the Plan to invest the below indicated dollar sum of my Participant
Account balance under the Plan as indicated below.
I hereby voluntarily elect and request to direct investment of the
below indicated dollar amount of my Participant Account funds for the purchase
of the Common Stock to be issued in the Bank's mutual-to-stock Conversion as
indicated below (minimum investment of $250.00; rounded to the nearest $10.00
increment; maximum investment permissible is 6,000 shares of the Common Stock
being offered or $60,000): $___________. Enter your $ level of requested
purchase through the Plan. Such amount does not exceed the vested portion of
assets held under the Plan for the underlying Participant.
<PAGE>
Please note that the actual number of shares of Common Stock purchased on your
behalf under the Plan may be limited or reduced in accordance with the Plan of
Stock Conversion of the Bank based upon the total number of shares of Common
Stock subscribed for by other parties.
All other funds in my Participant Account will remain invested as
previously requested. All future contributions under the Plan will continue to
be invested as previously requested.
3. Acknowledgement.
----------------
I fully understand that this self-directed portion of my Participant
Account does not share in the overall net earnings, gains, losses, and
appreciation or depreciation in the value of assets held by the Plan's other
investment funds, but only in my Account's allocable portion of such items from
the Directed Investment Account invested in the Common Stock. I understand that
the Plan's Trustee, in complying with this election and in following my
directions for the investment of my Account, is not responsible or liable in any
way for the expenses or losses that may be incurred by my Account assets
invested in Common Stock under the Employer Stock Fund.
I further understand that this one time election shall become
irrevocable by me upon execution and submission of this Investment Form.
Only properly signed forms delivered to the Plan Trustee on or before ____,
- --------------------------------------------------------------------------------
1998, at 12:00 p.m., will be honored.
- --------------------------------------
The undersigned Participant acknowledges that he or she has received
and read the Prospectus of the Farnsworth Bancorp, Inc., dated June 12, 1998,
the Prospectus Supplement dated June 12, 1998, regarding the Peoples Savings
Bank Employees' Savings & Profit Sharing Plan and Trust as adopted by Peoples
Savings Bank and this Investment Form. The undersigned hereby acknowledges that
the shares of Common Stock to be purchased with the funds noted above are not
savings accounts or deposits and are not insured by the Federal Deposit
Insurance Corporation, the Bank Insurance Fund, the Savings Bank Insurance Fund,
or any other governmental agency. Investment in such Common Stock will expose
the undersigned to the investment risks and potential fluctuations in the market
price of such Common Stock. Such investment in the Common Stock does not offer
any guarantees regarding maintenance of the principal value of such investment
or any projections or guarantees associated with future value or dividend
payments with respect to such Common Stock. The undersigned has read and
understands the above listed documents and hereby voluntarily makes and consents
to this investment election and voluntarily signed his (her) name as of the date
listed below. If you so elect, you may choose not to make any investment
decision at this time.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ------------------------ ------------- ------------------------ -------------
Witness Date Participant Date
- ------------------------ ------------- ------------------------ -------------
Witness Date Participant's Spouse Date
For the Trustee For the Plan Administrator
- ------------------------ ------------- ------------------------ -------------
Date Date
</TABLE>
<PAGE>
Appendix-B
----------
FORM 7
CHANGE OF INVESTMENT ALLOCATION
MEMBER DATA (Please Type or Print Clearly):
1. Soc. Sec. Number
------------------------------
2. Name
--------------------------------------------------------------
Last First Middle Initial
3. Current Address
---------------------------------------------------
Street City State Zip Code
SECTION I
NEW INVESTMENT DIRECTIONS (Applicable to Future Contributions Only):
I hereby revoke any previous investment instructions and now direct that any
future contributions and/or loan repayments, if any, made by me or on my behalf
by my Employer, including those contributions and/or repayments received by the
Peoples Savings Bank Employees' Savings and Profit Sharing Plan and Trust during
the same reporting period as this form, be invested in the following whole
percentages.
S&P 500 Stock Fund ______%
Stable Value Fund ______%
S&P MidCap Stock Fund ______%
Money Market Fund ______%
Government Bond Fund ______%
International Stock Fund ______%
Income Plus Asset Allocation Fund ______%
Growth Asset Allocation Fund ______%
Growth & Income Asset Allocation Fund ______%
Farnsworth Bancorp, Inc. Stock Fund ______%
SECTION II
NEW INVESTMENT DIRECTIONS (Applicable to Accumulated Balances Only)
I hereby revoke any previous investment direction and now direct that the market
value of the units that I have invested in the following Funds, to the extent
permissible, be transferred out of the specified Fund and invested in the
selected Funds in whole percentages.
THE TOTAL OF YOUR FUND TO FUND PERCENTAGES MUST TOTAL 100%
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
_____% from _____% from _____% from
S&P 500 Stock Fund to: Stable Value Fund to: S&P MidCap Stock Fund to:
_____% Stable Value Fund _____% S&P 500 Stock Fund _____% S&P 500 Stock Fund
_____% S&P MidCap Stock Fund _____% S&P MidCap Stock Fund _____% Stable Value Fund
_____% Money Market Fund _____% Money Market Fund _____% Money Market Fund
_____% Government Bond Fund _____% Government Bond Fund _____% Government Bond Fund
_____% International Stock Fund _____% International Stock Fund _____% International Stock Fund
_____% Income Plus Fund _____% Income Plus Fund _____% Income Plus Fund
_____% Growth and Income Fund _____% Growth and Income Fund _____% Growth and Income Fund
_____% Growth Fund _____% Growth Fund _____% Growth Fund
% Farnsworth Bancorp, Inc. Stock % Farnsworth Bancorp, Inc. Stock % Farnsworth Bancorp, Inc. Stock
===== ===== =====
100 100 100
_____% from _____% from _____% from
Money Market Fund to: Government Bond Fund to: International Stock Fund to:
_____% S&P 500 Stock Fund _____% S&P 500 Stock Fund _____% S&P 500 Stock Fund
_____% Stable Value Fund _____% Stable Value Fund _____% Stable Value Fund
_____% S&P MidCap Stock Fund _____% S&P MidCap Stock Fund _____% S&P MidCap Stock Fund
_____% Government Bond Fund _____% Money Market Fund _____% Money Market Fund
_____% International Stock Fund _____% International Stock Fund _____% Government Bond Fund
_____% Income Plus Fund _____% Income Plus Fund _____% Growth and Income Fund
_____% Growth and Income Fund _____% Growth and Income Fund _____% Income Plus Fund
_____% Growth Fund _____% Growth Fund _____% Growth Fund
% Farnsworth Bancorp, Inc. Stock % Farnsworth Bancorp, Inc. Stock % Farnsworth Bancorp, Inc. Stock
===== ===== =====
100 100 100
_____% from _____% from _____% from
Income Plus Asset Allocation Fund Growth and Income Asset Allocation Growth Asset Allocation Fund to:
to: Fund to:
_____% S&P 500 Stock Fund _____% S&P 500 Stock Fund _____% S&P 500 Stock Fund
_____% Stable Value Fund _____% Stable Value Fund _____% Stable Value Fund
_____% S&P MidCap Stock Fund _____% S&P MidCap Stock Fund _____% S&P MidCap Stock Fund
_____% Money Market Fund _____% Money Market Fund _____% Money Market Fund
_____% Government Bond Fund _____% Government Bond Fund _____% Government Bond Fund
_____% International Stock Fund _____% International Stock Fund _____% International Stock Fund
_____% Growth and Income Fund _____% Income Plus Fund _____% Income Plus Fund
_____% Growth Fund _____% Growth Fund _____% Growth & Income Fund
% Farnsworth Bancorp, Inc. Stock % Farnsworth Bancorp, Inc. Stock % Farnsworth Bancorp, Inc. Stock
===== ===== =====
100 100 100
</TABLE>
<PAGE>
NOTE: All percentages elected in Section II will be subtracted from current fund
values prior to any reallocation noted under Section I of this form.
Notes:
- ------
No amounts invested in the Stable Value Fund may be transferred directly to the
Money Market Fund. Stable Value Fund amounts invested in the S&P 500 Stock Fund,
S&P MidCap Stock Fund, Government Bond Fund, International Stock Fund, Income
Plus Asset Allocation Fund, Growth and Income Asset Allocation Fund, Growth
Asset Allocation Fund, and/or Farnsworth Bancorp, Inc. Stock Fund, for a period
of three months may be transferred to the Money Market Fund upon the submission
of a separate Change of Investment Allocation form.
The percentage that can be transferred to the Money Market Fund may be limited
by any amounts previously transferred from the Stable Value Fund that have not
satisfied the equity wash requirement described above. Such amounts will remain
in either the S&P 500 Stock Fund, S&P MidCap Stock Fund, Government Bond Fund,
International Stock Fund, Income Plus Asset Allocation Fund, Growth and Income
Asset Allocation Fund, Growth Asset Allocation Fund, and/or Farnsworth Bancorp,
Inc. Stock Fund and a separate direction to transfer them to the Money Market
Fund will be required when they become available.
Any future contributions or loan repayments that are invested in the Farnsworth
Bancorp, Inc. Stock Fund during the Conversion will be credited to the
Participant's Account in the month following the Common Stock Subscription
Offering of Farnsworth Bancorp, Inc.
If there is not enough Farnsworth Bancorp, Inc. Common Stock to fulfill all of
the Participants' requests during the Conversion, the Common Stock purchased
would be apportioned and additional Common Stock will be purchased in the open
market (at prices which may be higher than the purchase price in the
Conversion).
MEMBER'S SIGNATURE
------------------------------------------------------------- --------------
Signature of Member Date
Pentegra Services is hereby authorized to make the above listed change(s) to
this member's record.
------------------------------------------------------------- --------------
Signature of Peoples Savings Bank's Authorized Representative Date
<PAGE>
PROSPECTUS
Up to 548,838 Shares of Common Stock
(Anticipated Maximum, as adjusted)
FARNSWORTH BANCORP, INC.
[LOGO] (Proposed Holding Company for Peoples Savings Bank)
789 Farnsworth Avenue
Bordentown, New Jersey 08505
================================================================================
Peoples Savings Bank is converting from the mutual to the stock form of
organization. As part of the conversion, Peoples Savings Bank will become a
wholly owned subsidiary of Farnsworth Bancorp, Inc. Farnsworth Bancorp, Inc. was
formed in May 1998 and, upon consummation of the conversion, will own all of the
shares of Peoples Savings Bank. The common stock of Farnsworth Bancorp, Inc. is
being offered for sale to the public in accordance with a plan of conversion.
The plan of conversion must be approved by the Office of Thrift Supervision and
by a majority of the votes eligible to be cast by members of Peoples Savings
Bank. No common stock will be sold if Peoples Savings Bank does not receive
these approvals or if Farnsworth Bancorp, Inc. does not receive orders for at
least the minimum number of shares.
================================================================================
TERMS OF OFFERING
An independent appraiser has estimated the market value of the
converted Peoples Savings Bank to be between $3,527,500 and $4,772,500 which
establishes the number of shares to be offered. Subject to Office of Thrift
Supervision approval, up to 548,838 shares, an additional 15% above the maximum
number of shares, may be offered. Based on these estimates, we are making the
following offering of shares of common stock:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
o Price Per Share: $10.00
o Number of Shares
Minimum/Maximum/Maximum, as adjusted: 352,750 to 477,250 to 548,838
o Underwriting Commissions and Other Expenses
Minimum/Maximum/Maximum, as adjusted: $330,000 $330,000 $330,000
o Net Proceeds to Farnsworth Bancorp, Inc.
Minimum/Maximum/Maximum, as adjusted: $3,197,500 to $4,442,500 to $5,158,380
o Net Proceeds per Share
Minimum/Maximum/Maximum, as adjusted: $9.07 to $9.31 to $9.40
</TABLE>
Please refer to "Risk Factors" beginning on page ^ 14 of this document.
These securities are not deposits or accounts and are not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other governmental agency.
Neither the Securities and Exchange Commission, the Office of Thrift
Supervision, nor any state securities regulator has approved or disapproved
these securities or determined if this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
For information on how to subscribe, call the Stock Information Center at
(609) ^ 298-8797
-----------------------
Ryan, Beck & Co.
The Date of this Prospectus is August ____, 1998
<PAGE>
- --------------------------------------------------------------------------------
[MAP GOES HERE]
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
----
Questions and Answers About the Stock Offering...............................1
Summary......................................................................3
Selected Financial and Other Data............................................6
Recent Developments..........................................................9
Risk Factors..............................................................^ 14
Proposed Purchases by Directors and Officers..............................^ 17
Use of Proceeds...........................................................^ 17
Dividends.................................................................^ 18
Market for the Common Stock...............................................^ 19
Capitalization............................................................^ 20
Pro Forma Data............................................................^ 21
Historical and Pro Forma Capital Compliance...............................^ 27
The Conversion............................................................^ 28
Statements of Income......................................................^ 40
Management's Discussion and Analysis .....................................^ 41
Business of Farnsworth Bancorp, Inc.......................................^ 51
Business of Peoples Savings Bank..........................................^ 52
Regulation................................................................^ 66
Taxation..................................................................^ 72
Management of Farnsworth Bancorp, Inc.....................................^ 73
Management of Peoples Savings Bank........................................^ 73
Restrictions on Acquisition of Farnsworth Bancorp, Inc....................^ 79
Description of Capital Stock..............................................^ 82
Legal and Tax Matters.....................................................^ 84
Experts...................................................................^ 84
Registration Requirements.................................................^ 84
Where You Can Find Additional Information.................................^ 84
Index to Financial Statements.............................................^ 86
This document contains forward-looking statements which involve risks
and uncertainties. Farnsworth Bancorp, Inc.'s actual results may differ
significantly from the results discussed in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Risk Factors" beginning on page ^ 14 of this document.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
QUESTIONS AND ANSWERS ABOUT THE STOCK OFFERING
Q: What is the purpose of the offering?
A: The purpose of the offering is to raise capital and change our
corporate form of organization. The offering gives you the ^
opportunity to become a stockholder of our newly formed holding
company, Farnsworth Bancorp, Inc. Stockholders will share indirectly in
our future as a federal stock savings bank. The stock offering will
increase our capital and funds for lending and investment activities
and for expanding our operations. As a stock savings institution
operating through a holding company structure, we will have greater
flexibility for investments.
Q: How do I purchase the stock?
A: You must complete and return the stock order form to us (no copies will
be accepted) together with your full payment, on or before 12:00 noon,
Eastern time, __________, __________, 1998. If we do not receive
sufficient orders by that time, the offering may be extended until
________ ____, 1998.
Q: How much stock may I purchase?
A: The minimum purchase is 25 shares or $250. The maximum purchase for any
person or persons ordering through a single account, or for any person,
associate or group of persons acting in concert is 6,000 shares or
$60,000 of stock sold in the conversion. We may decrease or increase
the maximum purchase limitation without notifying you. In the event
that the offering is oversubscribed, there will not be enough shares to
fill all orders.
Q: What happens if there are not enough shares to fill all orders?
A: You might not receive any or all of the shares you want to purchase.
If there is an oversubscription in the subscription offering, the stock
will be allocated in the following priorities:
o Priority 1 - Persons who had a deposit account of at least $50.00
with us on December 31, 1996.
o Priority 2 - Tax Qualified Employee Plans (the employee stock
ownership plan of Peoples Savings Bank).
o Priority 3 - Persons who had a deposit account of at least $50.00
with us on June 30, 1998.
o Priority 4 - Other persons entitled to vote on the approval of
the plan of conversion.
If the above persons do not subscribe for all of the shares, the remaining
shares may be offered, with the help of Ryan, Beck & Co., in a community
offering or a syndicated community offering. In the event of a community
offering, we will give a preference to natural persons who reside in Burlington
County, New Jersey. In a syndicated community offering, we would offer any
remaining shares to the general public through a selling group of selected
brokers/dealers organized by Ryan, Beck & Co. We have the right to reject any
stock order in the community or syndicated community offerings.
- --------------------------------------------------------------------------------
1
<PAGE>
- --------------------------------------------------------------------------------
Q: What particular factors should I consider when deciding whether to buy
the stock?
A: Since the common stock is expected to be listed on the OTC-Bulletin
Board, an active and liquid market for the stock may not develop and,
even if developed, may not be maintained. This may make it difficult
for you to resell the shares you purchase. Also, before you decide to
purchase stock, you should read this prospectus, including the "Risk
Factors" section on pages ____-____.
Q: As a depositor or borrower member of Peoples Savings Bank, what will
happen if I do not purchase any stock?
A: You presently have voting rights since we are in the mutual form;
however, once we convert, voting rights will be held only by the
stockholders. You are not required to purchase stock. Your deposit
accounts, certificate accounts and any loans you may have with us will
not be affected by the conversion.
Q: Who can help answer any other questions I may have about the stock
offering?
A: If you have any questions you should contact:
Stock Information Center
Farnsworth Bancorp, Inc.
789 Farnsworth Avenue
Bordentown, New Jersey 08505
(609) ^ 298-8797
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
SUMMARY
This summary highlights selected information from this document and may
not contain all the information that is important to you. To understand the
stock offering fully, you should read this entire document carefully, including
the financial statements and the notes to the financial statements of Peoples
Savings Bank. References in this document to "we", "us", and "our" refer to
Peoples Savings Bank either in its present form or as a stock savings bank
following the conversion. In certain instances where appropriate, "we", "us", or
"our" refers collectively to Farnsworth Bancorp, Inc. and Peoples Savings Bank.
References in this document to the "Company" refer to Farnsworth Bancorp, Inc.
The Companies
Farnsworth Bancorp, Inc.
789 Farnsworth Avenue
Bordentown, New Jersey 08505
(609) 298-0723
Farnsworth Bancorp, Inc. is not an operating company and has not
engaged in any significant business to date. It was formed in May 1998 as a New
Jersey-chartered corporation to be the holding company for Peoples Savings Bank.
The holding company structure will provide greater flexibility in terms of
operations, expansion and diversification. See page __________.
Peoples Savings Bank
789 Farnsworth Avenue
Bordentown, New Jersey 08505
(609) 298-0723
Peoples Savings Bank was originally chartered in 1880 as The Bordentown
Building and Loan Association. In 1965 we merged with Peoples Building and Loan
Association and became Bordentown Peoples Savings and Loan Association. We
acquired Florence Township Savings and Loan Association and Beverly Building and
Loan Association in 1985 and 1989, respectively. The Beverly branch was
subsequently closed in 1994. In 1995, we changed our name to Peoples Savings
Bank, SLA. In 1996 we converted from a state-chartered mutual savings bank to a
federally-chartered mutual savings bank, and concurrently changed our name to
Peoples Savings Bank.
We are a community and customer-oriented federal mutual savings bank
with two branch offices located in Burlington County. We provide financial
services to individuals, families and small businesses. Historically, we have
emphasized residential mortgage lending, primarily originating one-to
four-family mortgage loans. At March 31, 1998, we had total assets of $38.7
million, deposits of $36.1 million, and retained earnings of ^ $2.3 million. See
pages ________ to ________.
The Stock Offering
We are offering between 352,750 and 477,250 shares of common stock at
$10.00 per share. We may increase the offering to 548,838 shares without further
notice to you. We would do this for two reasons: changes in our financial
condition or market conditions that occur before we complete the conversion; or
to fill the order ^ for our employee stock ownership plan. Any increase over
548,838 shares would require the approval of the Office of Thrift Supervision
(the "OTS"). If we do increase the size of the offering ^ up to 548,838 shares,
you may not change or cancel any stock order previously delivered to us.
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
Stock Purchases
The shares of common stock will be offered on the basis of priorities.
If you are a depositor or borrower member, you will receive subscription rights
to purchase the shares. The shares will be offered first to persons with
subscription rights in a subscription offering, and any remaining shares may be
offered in a community offering and/or a syndicated community offering. See
pages ________ to __________.
Subscription Rights
You may not sell or assign your subscription rights. Any transfer of
subscription rights is illegal and will result in a loss of subscription rights
and possibly other sanctions.
The Offering Range and Determination of the Price Per Share
The offering range is based on an independent appraisal of the
estimated market value of the common stock by FinPro, Inc., an appraisal firm
experienced in appraisals of savings institutions. FinPro, Inc. has estimated
that in its opinion as of June 12, 1998, the estimated valuation range of the
common stock was between $3,527,500 and $4,772,500 (with a midpoint of
$4,150,000). The estimated valuation range of the shares is our estimated market
value after giving effect to the sale of shares in this offering.
The appraisal was based both upon our financial condition and
operations and upon the effect of the additional capital we will raise in this
offering. The $10.00 price per share was determined by our board of directors.
It is the price most commonly used in stock offerings involving conversions of
mutual savings institutions. The independent appraisal will be updated before we
complete the conversion. If the estimated market value of the common stock is
either below $3,527,500 or above $5,488,380, you will be notified and will have
the opportunity to modify or cancel your order. See pages ________ to
__________.
Termination of the Offering
The subscription offering will terminate at 12:00 noon, Eastern Time,
on ________ ____, 1998. Any community offering or syndicated community offering
may terminate at any time without notice, but no later than ________ ____, 1998,
without approval by the OTS.
Benefits to Management from the Offering
Our employees will participate in the offering through individual
purchases and through purchases of stock by our employee stock ownership plan,
which is a type of retirement plan. We also intend to implement a restricted
stock plan and a stock option plan, which may benefit the President and other
officers and directors. If we adopt the restricted stock plan, our officers and
directors will be awarded stock at no cost to them. The restricted stock plan
and stock option plan may not be adopted until after the conversion and are
subject to stockholder approval and compliance with OTS regulations.
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
Use of the Proceeds Raised from the Sale of Common Stock
Approximately 75% of the net proceeds the Company receives from the
sale of its common stock will be contributed to the Bank as payment for our
stock. Part of the Company's remaining funds will be loaned to the bank employee
stock ownership plan to fund its purchase of 8% of the shares sold in the
conversion. Remaining proceeds will initially be placed in short-term
investments. These funds may later be used for stock repurchases or for the
payment of dividends.
The funds the Bank receives from the sale of our stock to the Company
will increase our capital for future lending and investment. In the ^ future, we
also plan to use a portion of the proceeds to expand our operations by
establishing a new branch office. A portion of the funds we receive may be used
for the purchase of up to 4% of the shares offered in the conversion for the
restricted stock plan which is expected to be adopted following the conversion.
See page __________.
Dividends
Farnsworth Bancorp, Inc. does not initially expect to pay dividends. We
may, however, at a later time establish a dividend policy. See page __________.
Market for the Common Stock
It is expected that our common stock will be quoted on the OTC-Bulletin
Board. An active and liquid trading market, however, may not develop or be
maintained. Investors should have a long-term investment intent. Persons
purchasing shares may not be able to sell their shares when they desire or sell
them at a price equal to or above $10.00. Ryan, Beck & Co. is expected to make a
market in the common stock. Ryan, Beck & Co. will, however, not be subject to
any obligation with respect to such efforts. See page __________.
Important Risks in Owning Farnsworth Bancorp, Inc.'s Common Stock
Before you decide to purchase stock in the offering, you should read
the "Risk Factors" section on pages ____ -____ of this document.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
SELECTED FINANCIAL AND OTHER DATA
We are providing the following summary financial information. This
information is derived from our 1997 and 1996 audited financial statements, as
well as our unaudited period at and for the six months ended March 31, 1998 and
1997, as shown. The unaudited financial information at March 31, 1998, and for
the six months ended March 31, 1998 and 1997, reflects all adjustments
(consisting only of normal recurring adjustments) which are considered necessary
to present fairly the financial information for such periods. The following
information is only a summary and you should read it in conjunction with our
financial statements and notes thereto beginning on page F-1. The operating data
for the six month periods ended March 31, 1998 is not necessarily indicative of
the results to be expected for the full year.
Selected Financial Data
<TABLE>
<CAPTION>
At March 31, At September 30,
------------ ----------------------------
1998 1997 1996
------------ ------- ---------
(Dollars in thousands)
<S> <C> <C> <C>
Total amount of:
Assets.......................................... $38,685 $37,619 $34,362
Loans receivable, net........................... 28,280 26,409 23,261
Mortgage-backed securities...................... 2,540 3,016 2,781
Investment securities, net...................... 2,886 3,852 5,467
Cash and cash equivalents....................... 2,925 2,365 483
Deposits........................................ 36,088 35,197 29,570
FHLB advances................................... -- -- 2,435
Retained earnings (substantially restricted).... 2,225 2,088 1,879
Number of:
Deposit accounts................................ 6,548 5,923 5,530
Full service offices............................ 2 2 2
</TABLE>
- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------
Summary of Operations
<TABLE>
<CAPTION>
For the For the
Six Months Ended Year Ended
March 31, September 30,
----------------- -----------------
1998 1997 1997 1996
------- ------- ------- -------
(In thousands)
<S> <C> <C> <C> <C>
Interest income ......................................... $ 1,333 $ 1,263 $ 2,635 $ 2,369
Interest expense ........................................ 677 688 1,409 1,222
------- ------- ------- -------
Net interest income ..................................... 656 575 1,226 1,147
Provision for loan losses ............................... 59 4 8 13
------- ------- ------- -------
Net interest income after provisions for loan losses .... 597 571 1,218 1,134
Noninterest income ..................................... 133 79 161 111
Noninterest expense(1) .................................. 578 566 1,106 1,287
------- ------- ------- -------
Income (loss) before income taxes ....................... 152 84 273 (42)
Income tax expense (benefit) ............................ 38 22 81 (22)
------- ------- ------- -------
Net income (loss) ....................................... $ 114 $ 62 $ 192 $ (20)
======= ======= ======= =======
</TABLE>
- ----------------
(1) Includes a non-recurring expense of $192,000, or $121,000 net of taxes,
for the year ended September 30, 1996 for a one-time deposit premium to
recapitalize the SAIF. Excluding this non-recurring expense, net income
would have been $101,000.
- --------------------------------------------------------------------------------
7
<PAGE>
- --------------------------------------------------------------------------------
Key Operating Ratios
<TABLE>
<CAPTION>
At or For the Six Months At or For the Year Ended
Ended March 31, September 30,
---------------------------- -------------------------
1998(1) 1997(1) 1997 1996
----------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Performance Ratios:
Return on average assets (net income
(loss) divided by average total assets)....... 0.60% 0.34% 0.51% (0.05)%
Return on average equity (net income
(loss) divided by average equity)............ 10.44 6.43 9.98 (1.02)
Average equity to average assets................ 5.78 5.29 5.29 5.80
Equity to assets................................ 5.75 5.09 5.55 5.47
Interest rate spread............................ 3.34 3.25 3.28 3.52
Net interest margin............................. 3.68 3.39 3.50 3.62
Average interest-earning assets to
average interest-bearing liabilities.......... 108.90 103.08 105.63 102.81
Net interest income after provision for
loan losses, to total noninterest
expenses...................................... 103.29 100.88 110.12 88.11
Asset Quality Ratios:
Nonperforming loans to total assets............. 0.69 -- 0.53 0.03
Nonperforming assets to total assets............ 0.69 0.33 0.53 0.89
Nonperforming loans to total loans.............. 0.94 -- 0.75 0.04
Allowance for loan losses to total loans........ 0.44 0.25 0.25 0.25
Allowance for loan losses to
nonperforming loans........................... 46.99 N/A(2) 33.16 644.44
</TABLE>
- -------------------
(1) Ratios are annualized where appropriate.
(2) At March 31, 1997 there were no nonperforming loans. The allowance for
loan losses was $62,000.
- --------------------------------------------------------------------------------
8
<PAGE>
- --------------------------------------------------------------------------------
RECENT DEVELOPMENTS
Selected Financial and Other Data
Set forth below are summaries of our historical financial and other
data at the dates and for the periods indicated. Financial data as of June 30,
1998, and for the three and nine months ended June 30, 1998 and 1997 are
unaudited. In the opinion of management, all adjustments (consisting only of
normal recurring accruals) necessary for a fair presentation have been included.
The data for the three and nine months ended June 30, 1998 are not necessarily
indicative of the results of operations for the fiscal year ending September 30,
1998.
Selected Financial Data
At At
June 30, September 30,
-------- -------------
1998 1997
-------- --------------
(Dollars in thousands)
Total amount of:
Assets........................................... $39,748 $37,619
Loans receivable, net............................ 30,018 26,409
Mortgage-backed securities....................... 2,226 3,016
Investment securities, net....................... 2,387 3,852
Cash and cash equivalents........................ 2,986 2,365
Deposits......................................... 37,042 35,197
FHLB advances.................................... -- --
Retained earnings (substantially restricted)..... 2,270 2,088
Number of:
Deposit accounts................................. 6,743 5,923
Full service offices............................. 2 2
- --------------------------------------------------------------------------------
9
<PAGE>
- --------------------------------------------------------------------------------
Summary of Operations
<TABLE>
<CAPTION>
For the For the
Three Months Ended Nine Months Ended
June 30, June 30,
--------------------------------- ---------------------------
1998 1997 1998 1997
------------- ----------------- ------------- -----------
(In thousands)
<S> <C> <C> <C> <C>
Interest income.................................................. $695 $702 $2,028 $1,965
Interest expense................................................. 352 374 1,029 1,062
--- --- ----- -----
Net interest income.............................................. 343 328 999 903
Provision for loan losses........................................ 5 3 64 7
---- ---- ----- ------
Net interest income after provisions for loan losses............. 338 325 935 896
Noninterest income............................................... 53 38 186 117
Noninterest expense.............................................. 313 271 891 837
--- --- --- ------
Income before income taxes....................................... 78 92 230 176
Income tax expense .............................................. 30 36 68 58
--- --- --- -----
Net income ...................................................... $ 48 $ 56 $162 $ 118
=== === === =====
</TABLE>
- --------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------
Key Operating Ratios
<TABLE>
<CAPTION>
At or For the At or For the
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------------------- ---------------------------------
1998(1) 1997(1) 1998 1997
---------------- ------------------ ------------------ ------------
<S> <C> <C> <C> <C>
Performance Ratios:
Return on average assets (net income
(loss) divided by average total assets)....... 0.48% 0.58% 0.56% 0.43%
Return on average equity (net income
(loss) divided by average equity)............. 8.50 11.26 9.79 8.08
Average equity to average assets................ 5.67 5.16 5.75 5.24
Equity to assets................................ 5.71 5.39 5.71 5.39
Interest rate spread............................ 3.34 2.54 3.46 3.26
Net interest margin............................. 3.65 3.61 3.67 3.47
Average interest-earning assets to
average interest-bearing liabilities.......... 101.14 107.89 101.15 104.78
Net interest income after provision for
loan losses, to total noninterest
expenses...................................... 107.99 119.93 104.94 107.05
Asset Quality Ratios:
Nonperforming loans to total assets............. 0.32 -- 0.32 --
Nonperforming assets to total assets............ 0.32 -- 0.32 --
Nonperforming loans to total loans.............. 0.42 -- 0.42 --
Allowance for loan losses to total loans........ 0.43 0.25 0.43 0.25
Allowance for loan losses to
nonperforming loans........................... 103.17 -- 103.17 --
</TABLE>
- ------------------
(1) Ratios are annualized where appropriate.
- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RECENT DEVELOPMENTS
Comparison of Financial Condition at June 30, 1998 and September 30, 1997
Total assets increased by $2.13 million or 5.66% due primarily to an
increase in loans receivable of $3.60 million, offset by decreases in
investment and mortgage-backed securities. The increase in loans receivable was
due to increased deposits. The decrease in mortgage-backed securities and
investment securities was due to maturities and repayments of principle.
Deposits, after interest credited, increased $1.85 million, in part
attributable to increased print and radio advertising. Retained earnings
increased $182,000 as a result of net earnings during the period.
Comparison of Results of Operations for the Three Months Ended June 30, 1998
Net Income. Net income decreased by $8,000 for the three months ended
June 30, 1998, as compared to the same three months of fiscal 1997. Net income
for this three month period was reduced primarily as a result of an increase in
compensation and other expenses, partially offset by an increase in loan fees
and a decrease in our provision for income taxes.
Net Interest Income. Net interest income increased $15,000 due to
increased mortgage loan originations. Interest expense decreased $22,000 due to
repayment of borrowed funds and a reduction in our average cost of additional
deposits due to lower market interest rates.
Noninterest Income. Noninterest income increased by $15,000 for the
three months ended June 30, 1998, compared to the same period in 1997, due to
increased fees from incrased loan originations.
Noninterest Expense. Noninterest expense increased by $42,000 or 16.50%
for the three months ended June 30, 1998 from $271,000 for the same period in
1997. This increase was attributable to a $13,000 increase in expenses related
to compensation and employee benefits which in turn was a result of general cost
of living and merit raises for our employees. Other expenses, the significant
components of which were bank charges, office supplies and miscellaneous
expenses, also increased by $30,000, .
Management believes that compensation and benefit expenses will
increase in future periods as a result of the adoption of the ESOP and other
stock benefit plans, if adopted. Furthermore, we anticipate that other expenses
will increase as a result of the costs associated with being a public
institution.
Comparison of Results of Operations for the Nine Months Ended June 30, 1998 and
1997
Net Income. Net income increased by $44,000 for the nine months ended
June 30, 1998, as compared to the same nine months of fiscal 1997. This increase
was due to increased net interest income and noninterest income, partially
offset by increases in noninterest expenses and loan loss provisions.
Net Interest Income. Net interest income increased by $96,000 for the
nine months ended June 30, 1998, as compared to the same nine months of fiscal
1997, due to an increase in interest-earning assets and the replacement of
higher interest rate borrowings with deposits at lower interest rates.
- --------------------------------------------------------------------------------
12
<PAGE>
- --------------------------------------------------------------------------------
Noninterest Expense. Noninterest expense increased by $54,000 or 6.55%
for the nine months ended June 30, 1998, from $837,000 for the same period in
1997. This increase was due to a $12,000 increase in compensation and employee
benefits-related expenses. Other expenses (bank charges, office supplies and
miscellaneous expenses) also increased by $42,000.
Noninterest Income. Noninterest income increased $69,000 for the nine
months ended June 30, 1998, as compared to the same period in 1997. This was
primarily due to the collection of a deficiency judgment in the amount of
$54,000.
Provision for Loan Losses. Our ratio of nonperforming loans to total
assets was 0.32% at June 30, 1998. The provision for loans losses for the nine
months ended June 30, 1998 increased from $7,000 for the nine months ended June
30, 1997, to $64,000, due to management's determination that a higher allowance
for loan losses was necessary to protect our ability to absorb losses as we
diversified our portfolio and assumed more credit risk. ^ See "Management's
Discussion and Analysis -- Results of Operations for the Six Months Ended March
31, 1998 and 1997 -- Provision for Loan Losses."
Provision for Incomes Taxes. The provision for income taxes increased
during the nine month period due to increased earnings.
Regulatory Capital Requirements
Set forth below are our regulatory capital ratios at June 30, 1998, as
compared to the minimum regulatory capital requirements imposed by the OTS
(dollars in thousands).
<TABLE>
<CAPTION>
Requirement Actual Excess
-------------------- ---------------------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Tangible capital....................... $ 595 1.50% $2,192 5.53% $1,597 4.03%
Core capital........................... $1,190 3.00% $2,192 5.53% $1,002 2.53%
Risk-based capital..................... $1,642 8.00% $2,400 11.69% $ 758 3.69%
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE>
RISK FACTORS
In addition to the other information in this document, you should
consider carefully the following risk factors in evaluating an investment in our
common stock.
Potential Impact of Changes in Interest Rates and the Current Interest Rate
Environment
Our ability to make a profit largely depends on our net interest
income. Net interest income is the difference between what we earn on our
interest-earning assets (such as mortgage loans and investment securities) and
what we pay on our interest-bearing liabilities (such as deposits and
borrowings). Most of our mortgage loans have fixed rates of interest and are
generally originated with terms of up to 30 years, while our deposit accounts
have significantly shorter terms to maturity. As a result, our interest-earning
assets have longer effective maturities than our interest-bearing liabilities,
which results in the yield on our interest-earning assets generally adjusting
more slowly to changes in interest rates than the cost of our interest-bearing
liabilities. Our net interest income, therefore, will be adversely affected by
material and prolonged increases in interest rates. In addition, rising interest
rates may result in a lack of customer demand for loans, which would adversely
affect our earnings. See "Management's Discussion and Analysis --
Asset/Liability Management."
Changes in interest rates can also affect the average life of loans and
mortgage-backed securities. Historically a reduction in interest rates has
resulted in increased prepayments of loans and mortgage-backed securities, as
borrowers refinanced their mortgages in order to reduce their borrowing cost.
Under these circumstances, we are subject to reinvestment risk to the extent
that we are not able to reinvest such prepayments at rates which are comparable
to the rates on the prepaid loans or securities.
Changes in interest rates also can affect the value of our investment
and mortgage-backed securities and our ability to realize gains from the sale of
those assets which are classified as available- for-sale. Generally, the value
of fixed-rate instruments fluctuates inversely with changes in interest rates.
Increases in interest rates usually result in decreases in the carrying value of
interest-earning assets which are classified as available-for-sale, which would
adversely affect our results of operations if sold, or stockholders' equity if
retained by the Company as a result of Statement of Financial Accounting
Standards No. 115.
Decreased Return on Average Equity and Increased Expenses Immediately After
Conversion
As a result of the conversion, our equity will increase substantially.
We anticipate that it will take time to prudently deploy the capital raised from
the offering. Our expenses will increase because of the costs associated with
our employee stock ownership plan, restricted stock plan, and the costs of being
a public company. We do not know if we will receive sufficient other income to
offset these additional costs. Because of the increases in our equity and
expenses, our return on equity may decrease as compared to our performance in
previous years. A lower return on equity could limit the trading price potential
of the common stock. Moreover, we initially intend to invest the net proceeds in
short-term investments which generally have lower yields than residential
mortgage loans. For 1997 our return on retained earnings was 9.98%. See "Use of
Proceeds."
14
<PAGE>
Lack of Active Market for Common Stock
Due to the small size of the offering, it is unlikely that an active
trading market will develop or be maintained. If an active market does not
develop, you may not be able to sell your shares promptly or at a price equal to
or above the price you paid for them. It is anticipated that the Company's
common stock will be traded in the over-the-counter ("OTC") market with
quotations available through the OTC- Bulletin Board. See "Market for the Common
Stock."
Anti-Takeover Provisions and Statutory Provisions That Could Discourage Hostile
Acquisitions of Control
Provisions in the Company's certificate of incorporation and bylaws,
the general corporation code of New Jersey, and certain federal regulations may
make it difficult for someone to pursue a tender offer, change in control or
takeover attempt which is opposed by our management and board of directors.
These provisions include: restrictions on the acquisition of the Company's
equity securities and limitations on voting rights; the classification of the
terms of the members of the board of directors; certain provisions relating to
meetings of stockholders; denial of cumulative voting to stockholders in the
election of directors; the ability to issue preferred stock and additional
shares of common stock without shareholder approval; and super majority
provisions for the approval of certain business combinations. As a result,
stockholders who might desire to participate in such a transaction may not have
an opportunity to do so. Such provisions will also render the removal of the
current board of directors or management of the Company more difficult. In
addition, the effect of these provisions could be to limit the trading price
potential of our stock. See "Restrictions on Acquisition of Farnsworth Bancorp,
Inc."
Possible Voting Control by Directors and Officers
Our officers and directors intend to purchase approximately 9.8% of the
common stock offered in the conversion based on the sale of 415,000 shares at
the midpoint of the estimated valuation range. These purchases together with the
purchase of shares by our employee stock ownership plan, as well as the
potential acquisition of common stock through the stock option plan and
restricted stock plan, could make it difficult for a stockholder to obtain
majority support for stockholder proposals which are opposed by our management
and board of directors. In addition, the voting of those shares could block the
approval of transactions (i.e., business combinations and amendments to our
articles of incorporation and bylaws) requiring the approval of 80% of the
stockholders under the Company's articles of incorporation. See "Proposed
Purchases by Directors and Officers," "Management of Peoples Savings Bank --
Executive Compensation," "Description of Capital Stock," and "Restrictions on
Acquisition of Farnsworth Bancorp, Inc."
Possible Dilutive Effect of Restricted Stock Plan and Stock Options
Upon completion of the conversion, shareholders will be asked to
approve the restricted stock plan and stock option plan. If approved, we will
issue stock and options to purchase stock to our officers and directors through
these plans. If the shares for the restricted stock plan and stock options are
issued from our authorized but unissued stock, your voting interests may be
diluted by up to approximately 12.3%. See "Pro Forma Data," "Management of
Peoples Savings Bank -- Proposed Future Stock Benefit Plans," and "-- Restricted
Stock Plan."
15
<PAGE>
Financial Institution Regulation and Future of the Thrift Industry
We are subject to extensive regulation, supervision, and examination by
the OTS and the Federal Deposit Insurance Corporation (the "FDIC"). Bills have
been introduced in Congress that could curtail the powers of unitary thrift
holding companies. Other legislation has been considered that would consolidate
the OTS with the Office of the Comptroller of the Currency ("OCC") and require
us to adopt a commercial bank charter. If we become a commercial bank, our
investment authority and the ability of the Company to engage in diversified
activities may be limited, which could adversely affect our value and
profitability. See "Regulation."
Restrictions on Repurchase of Shares
Generally, during the first year following the conversion, the Company
may not repurchase its shares. During each of the second and third years
following the conversion, the Company may repurchase up to 5% of its outstanding
shares. During those periods, even if we believe that additional repurchases
would be a prudent use of funds, we would not be able to do so without first
obtaining OTS approval. There is no assurance that OTS approval would be given.
See "The Conversion -- Restrictions on Repurchase of Shares."
Possible Year 2000 Computer Problems
A great deal of information has been disseminated about the widespread
computer problems that may arise in the year 2000. Computer programs that can
only distinguish the final two digits of the year entered (a common programming
practice in earlier years) are expected to read entries for the year 2000 as the
year 1900 and compute payment, interest or delinquency based on the wrong date
or are expected to be unable to compute payment, interest or delinquency. Rapid
and accurate data processing is essential to the operation of the Bank. Data
processing is also essential to most other financial institutions and many other
companies.
All our material data processing that could be affected by ^the year
2000 issue described above is provided by a third party service bureau. The
service bureau used by the Bank has advised us that ^ their computer services
will function properly on and after January 1, 2000. Additional testing of the
system is scheduled for August 1998. The service bureau has advised us that they
will keep us apprised of the results of the testing. We are also in the process
of upgrading our teller equipment to be Year 2000 compliant and we expect this
upgrade to be completed by the fourth quarter of 1998. We do not believe that
the costs of year 2000 compliance will have a material adverse effect on our
financial condition or results of operations. If by the end of 1998 ^ our
primary data processing service bureau ^has encountered unforseen problems and,
as a result, will not be year 2000 compliant within the necessary timeframe, we
will seek a secondary data processing service provider to complete the task. If
we are unable to do this, we will identify those steps necessary to minimize the
negative impact the computer problems could have on us. ^ Any delays, mistakes
or failures^ resulting from failure of our data processing service provider to
be year 2000 compliant could have a significant adverse impact on our financial
condition and results of operations. See "Management's Discussion and Analysis
- -- Year 2000 Issues."
16
<PAGE>
PROPOSED PURCHASES BY DIRECTORS AND OFFICERS
The following table sets forth the approximate purchases of common
stock by each director and executive officer and their associates in the
conversion. Shares purchased by officers and directors in the conversion may not
be sold for at least one year. The table assumes that 415,000 shares (the
midpoint of the estimated valuation range) of the common stock will be sold at
$10.00 per share and that sufficient shares will be available to satisfy
subscriptions in all categories.
<TABLE>
<CAPTION>
Aggregate
Total Price of Percent
Shares Shares of Shares
Name Position Purchased(1) Purchased(1) Sold(1)
- --------------------------------- -------------------------- ------------------ ------------------- -------------
<S> <C> <C> <C> <C>
George G. Aaronson, Jr. Director 6,000 $60,000 1.45%
Charles E. Adams Director 6,000 60,000 1.45
Herman Gutstein Chairman 6,000 60,000 1.45
G. Edward Koenig, Jr. Director ^ 4,000 40,000 0.96
Edgar N. Peppler Director 6,000 60,000 1.45
William H. Wainwright, Jr. Director 6,000 60,000 1.45
Gary N. Pelehaty President, CEO and 4,000 40,000 0.96
Director
Charles Alessi Vice President, CFO, 800 8,000 0.19
Secretary and
Treasurer
All directors and executive
officers as a group 38,800 388,000 9.35
</TABLE>
- ---------------
(1) Does not include shares purchased by the employee stock ownership plan (the
"ESOP").
USE OF PROCEEDS
The Company will contribute approximately 75% of the net proceeds from
the offering to the Bank as payment for our stock. A portion of the net proceeds
to be retained by the Company will be loaned to our employee stock ownership
plan to fund its purchase of 8% of the shares sold in the conversion. See "Pro
Forma Data." The balance of the net proceeds retained by the Company will
initially be placed in short-term investments. These remaining proceeds may also
serve as a source of funds for the payment of dividends to stockholders or for
the repurchase of the shares.^ Federal regulations prohibit the repurchase of
stock in the first year following conversion without OTS approval. ^Currently,
we have no plans, arrangements or understandings regarding a stock repurchase.
The funds contributed to the Bank by the Company will be used for
general corporate purposes including: (i) originating and purchasing loans, (ii)
investment in U.S. government and federal agency securities, or (iii) investment
in mortgage-backed securities. Initially, we intend to invest the net proceeds
in short- and medium-term investments such as mortgage-backed securities, until
we can deploy the proceeds into higher yielding assets such as loans. The funds
added to our capital will also strengthen our capital position. We may also use
some of our net proceeds to fund the purchase of 4% of the shares for a
restricted stock plan (the "RSP") which is anticipated to be adopted following
the conversion. See "Pro Forma Data." In the near future, we plan to use a
portion of the proceeds to expand our operations by establishing a new branch
office.
17
<PAGE>
The net proceeds may vary because the total expenses of the conversion
may be more or less than those estimated. We expect our estimated expenses to be
approximately $330,000 even if the maximum of the estimated valuation range is
increased to up to $5,488,380. Our estimated net proceeds will range from
$3,198,000 to $4,443,000 (or up to $5,158,000 in the event the maximum of the
estimated valuation range is increased to $5,488,380). See "Pro Forma Data." The
net proceeds will also vary if expenses are different or if the number of shares
to be issued in the conversion is adjusted to reflect a change in our estimated
valuation range. Payments for shares made through withdrawals from existing
deposit accounts with us will not result in the receipt of new funds for
investment by us but will result in a reduction of our liabilities and interest
expense as funds are transferred from interest-bearing certificates or other
deposit accounts.
DIVIDENDS
Upon conversion, the Company's board of directors will have the
authority to declare dividends on the shares, subject to statutory and
regulatory requirements. The Company, however, does not expect initially to pay
cash dividends. Any declaration of dividends by the board of directors will
depend upon a number of factors, including: (i) the amount of the net proceeds
retained by the Company in the conversion, (ii) investment opportunities
available, (iii) capital requirements, (iv) regulatory limitations, (v) results
of operations and financial condition, (vi) tax considerations, and (vii)
general economic conditions. Upon review of such considerations, the board may
authorize future dividends if it deems such payment appropriate and in
compliance with applicable law and regulation. For a period of one year
following the completion of the conversion, we do not intend to pay any
extraordinary dividends that would be treated for tax purposes as a return of
capital or take any actions to pursue or propose such dividends. In addition,
there can be no assurance that regular or special dividends will be paid, or, if
paid, will continue to be paid. See "Historical and Pro Forma Capital
Compliance", "The Conversion -- Effects of Conversion to Stock Form on
Depositors and Borrowers of Peoples Savings Bank --Liquidation Account" and
"Regulation -- Dividend and Other Capital Distribution Limitations."
The Company is not subject to OTS regulatory restrictions on the
payment of dividends to its stockholders although the source of such dividends
will be dependent in part upon the receipt of dividends from the Bank. The
Company is subject, however, to the requirements of New Jersey law, which
generally requires that dividends not be paid if it would cause the Company to
be unable to pay its debts as they become due in the usual course of business or
if, after paying the dividend, the Company's total assets would be less than its
total liabilities.
In addition to the foregoing, the portion of our earnings which has
been appropriated for bad debt reserves and deducted for federal income tax
purposes cannot be used by us to pay cash dividends to the Company without the
payment of federal income taxes by us at the then current income tax rate on the
amount deemed distributed, which would include the amount of any federal income
taxes attributable to the distribution. See "Taxation -- Federal Taxation" and
Note 11 to our financial statements. We do not contemplate any distribution that
would result in a recapture of the bad debt reserve or otherwise create federal
tax liabilities.
18
<PAGE>
MARKET FOR THE COMMON STOCK
As a newly organized corporation, the Company has never issued capital
stock, and consequently there is no established market for the common stock. It
is expected that the Company's common stock will be traded in the
over-the-counter ("OTC") market with quotations available through the
OTC-Bulletin Board. Ryan, Beck & Co. is expected to make a market in the common
stock. Making a market may include the solicitation of potential buyers and
sellers in order to match buy and sell orders. Ryan, Beck & Co., however, will
not be subject to any obligation with respect to such efforts. If the common
stock cannot be traded on the OTC-Bulletin Board, it is expected that the
transactions in the common stock will be reported in the pink sheets of the
National Quotation Bureau, Inc.
The development of an active trading market depends on the existence of
willing buyers and sellers. Due to the small size of the offering, an active
trading market in our common stock may not develop or be maintained. You could
have difficulty disposing of your shares and so you should not view the shares
as a short-term investment. You may not be able to sell your shares at a price
equal to or above the price you paid for the shares.
19
<PAGE>
CAPITALIZATION
The following table presents, as of March 31, 1998, our historical
capitalization and the consolidated capitalization of the Company after giving
effect to the conversion and the other assumptions set forth below and under
"Pro Forma Data," based upon the sale of shares at the minimum, midpoint,
maximum, and 15% above the maximum of the estimated valuation range (the "EVR")
at a price of $10.00 per share.
<TABLE>
<CAPTION>
Pro Forma Consolidated Capitalization
Based on the Sale of (2)(3)
----------------------------------------------------------
Historical
Capitalization
at March 31, 352,750 415,000 477,250 548,838
1998 Shares Shares Shares Shares
------ ------------ ------------- -------------- ---------
(In thousands)
<S> <C> <C> <C> <C> <C>
Deposits(1) .................................. $36,088 $36,088 $36,088 $36,088 $36,088
Stockholders' equity:
Preferred stock, $.10 per share, 1,000,000
shares authorized; none to be issued....... $ -- $ -- $ -- $ -- $ --
Common stock, $.10 par value, 5,000,000
shares authorized; total shares to be
issued as reflected........................ -- 35 42 48 55
Additional paid-in capital.................... -- 3,163 3,778 4,395 5,103
Retained earnings, substantially restricted... 2,143 2,143 2,143 2,143 2,143
Net unrealized gains on available-for-sale
securities................................... 82 82 82 82 82
------ ------- ------- ------ ------
Total equity(4)............................... 2,225 5,423 6,045 6,668 7,383
Less:
Common stock acquired by ESOP............... -- 282 332 382 439
Common stock acquired by RSP................ -- 141 166 191 220
---- --- --- ----- ----
Total stockholders' equity.................... $2,225 $5,000 $5,547 $6,095 $6,724
===== ===== ===== ===== =====
Total stockholders' equity
as a % of total assets...................... 5.75% 12.06% 13.20% 14.32% 15.57%
===== ===== ===== ===== =====
</TABLE>
- ---------------------
(1) Excludes accrued interest payable on deposits. Withdrawals from savings
accounts for the purchase of stock have not been reflected in these
adjustments. Any withdrawals will reduce pro forma capitalization by the
amount of such withdrawals.
(2) Does not reflect the increase in the number of shares of common stock after
the conversion in the event of implementation of the Option Plan or RSP.
See "Management of Peoples Savings Bank - Proposed Future Stock Benefit
Plans -- Stock Option Plan" and "-- Restricted Stock Plan."
(3) Assumes that 8% and 4% of the shares issued in the conversion will be
purchased by the ESOP and RSP, respectively. No shares will be purchased by
the RSP in the conversion. It is assumed on a pro forma basis that the RSP
will be adopted by the board of directors, approved by stockholders of the
Company, and approved by the OTS. It is assumed that the RSP will purchase
common stock at $10.00 per share in the open market within one year of the
conversion in order to give an indication of its effect on capitalization.
The pro forma presentation does not show the impact of: (a) results of
operations after the conversion, (b) changing market prices of shares of
common stock after the conversion, or (c) a smaller than 4% purchase by the
RSP. Assumes that the funds used to acquire the ESOP shares will be
borrowed from the Company for a ten year term at the prime rate as
published in The Wall Street Journal. For an estimate of the impact of the
ESOP on earnings, see "Pro Forma Data." The Bank intends to make
contributions to the ESOP sufficient to service and ultimately retire its
debt. The amount to be acquired by the ESOP and RSP is reflected as a
reduction from stockholders' equity. The issuance of authorized but
unissued shares for the RSP in an amount equal to 4% of the outstanding
shares of common stock will have the effect of diluting existing
stockholders' interests by 4.32%. There can be no assurance that
stockholder approval of the RSP will be obtained. See "Management of
Peoples Savings Bank -- Proposed Future Stock Benefit Plans - - Restricted
Stock Plan."
(4) Includes retained earnings and unrealized gains and losses on
available-for-sale securities, net of taxes. The equity of the Bank will be
substantially restricted after the conversion. See "Dividends," "Regulation
-- Dividends and Other Capital Distribution Limitations," "The Conversion
-- Effects of Conversion to Stock Form on Depositors and Borrowers of
Peoples Savings Bank -- Liquidation Account" and Note 14 to the Financial
Statements.
20
<PAGE>
PRO FORMA DATA
The actual net proceeds from the sale of the common stock cannot be
determined until the conversion is completed. However, investable net proceeds
are currently estimated to be between $3.2 million and $5.2 million at the
minimum and maximum, as adjusted, of the estimated valuation range (the "EVR"),
based upon the following assumptions: (i) 8% of the shares will be sold to the
ESOP and 38,800 shares will be sold to executive officers and their associates;
(ii) Ryan, Beck & Co. will receive a fee of $125,000, which will include
out-of-pocket expenses (including legal fees and out-of-pocket expenses of such
counsel) incurred by Ryan, Beck & Co.; (iii) no shares will be sold in a
syndicated community offering and (iv) other conversion expenses, excluding the
fees and expenses paid to Ryan, Beck & Co., will be $205,000. In addition,
because management of the Bank presently intends to adopt the RSP within the
first year following the conversion, a purchase by the RSP in the conversion has
been included with the pro forma data to give an indication of the effect of a
4% purchase by the RSP at a $10.00 per share purchase price in the market, even
though the RSP does not currently exist and is prohibited by OTS regulation from
purchasing shares in the conversion. The pro forma presentation does not show
the effect of: (a) results of operations after the conversion, (b) changing
market prices of the shares after the conversion, (c) less than a 4% purchase by
the RSP, or (d) dilutive effects of newly issued shares under the restricted
stock plan and the stock option plan (see footnotes 2 and 4).
The following table sets forth our historical net earnings and equity
prior to the conversion and the pro forma consolidated net earnings and
stockholders' equity of the Company following the conversion. Unaudited pro
forma consolidated net earnings and equity have been calculated for the six
months ended March 31, 1998 and the fiscal year ended September 30, 1997 as if
the common stock to be issued in the conversion had been sold at October 1, 1997
and October 1, 1996, respectively, and the estimated net proceeds had been
invested at 5.41%, which was approximately equal to the one-year U.S. Treasury
bill rate at March 31, 1998. The one-year U.S. Treasury bill rate, rather than
an arithmetic average of the average yield on interest-earning assets and
average rate paid on deposits, has been used to estimate income on net proceeds
because it is believed that the one-year U.S. Treasury bill rate is a more
accurate estimate of the rate that would be obtained on an investment of net
proceeds from the offering. In calculating pro forma income, an effective state
and federal income tax rate of 37% has been assumed, resulting in an after tax
yield of 3.41% for the six months ended March 31, 1998 and the fiscal year ended
September 30, 1997. Withdrawals from deposit accounts for the purchase of shares
are not reflected in the pro forma adjustments. The computations are based upon
the assumptions that 352,750 shares (minimum of EVR), 415,000 shares (midpoint
of EVR), 477,250 shares (maximum of EVR) or 548,838 shares (maximum, as
adjusted, of the EVR) are sold at a price of $10.00 per share. As discussed
under "Use of Proceeds," a portion of the net proceeds that the Company receives
will be loaned to the ESOP to fund its anticipated purchase of 8% of shares
issued in the conversion. It is assumed that the yield on the net proceeds of
the conversion retained by the Company will be the same as the yield on the net
proceeds of the conversion transferred to us. Historical and pro forma per share
amounts have been calculated by dividing historical and pro forma amounts by the
indicated number of shares. Per share amounts have been computed as if the
shares had been outstanding at the beginning of the periods or at the dates
shown, but without any adjustment of per share historical or pro forma
stockholders' equity to reflect the earnings on the estimated net proceeds.
21
<PAGE>
The stockholders' equity information is not intended to represent the
fair market value of the shares, or the current value of our assets or
liabilities, or the amounts, if any, that would be available for distribution to
stockholders in the event of liquidation. For additional information regarding
the liquidation account, see "The Conversion -- Certain Effects of the
Conversion to Stock Form on Depositors and Borrowers of Peoples Savings Bank --
Liquidation Account" and Note 19 to the Financial Statements. The pro forma
income derived from the assumptions set forth above should not be considered
indicative of the actual results of our operations for any period. Such pro
forma data may be materially affected by a change in the price per share or
number of shares to be issued in the conversion and by other factors. For
information regarding investment of the proceeds see "Use of Proceeds" and "The
Conversion -- Stock Pricing" and "-- Change in Number of Shares to be Issued in
the Conversion."
22
<PAGE>
<TABLE>
<CAPTION>
At or For the Six Months Ended March 31, 1998
------------------------------------------------
352,750 415,000 477,250 548,838
Shares at Shares at Shares at Shares at
$10.00 $10.00 $10.00 $10.00
Per Share Per Share Per Share Per Share
--------- --------- --------- ---------
(Dollars in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Gross proceeds .................................. $ 3,528 $ 4,150 $ 4,773 $ 5,488
Less estimated offering expenses ................ 330 330 330 330
------- ------- ------- -------
Estimated net proceeds ........................ 3,198 3,820 4,443 5,158
Less: ESOP funded by the Company ............. 282 332 382 439
RSP funded by the Company .............. 141 166 191 220
------- ------- ------- -------
Estimated investable net proceeds: ............ $ 2,775 $ 3,322 $ 3,870 $ 4,499
======= ======= ======= =======
Net income:
Historical net income ......................... $ 114 $ 114 $ 114 $ 114
Pro forma earnings on investable net proceeds . 47 57 66 77
Pro forma ESOP adjustment(1) .................. (9) (10) (12) (14)
Pro forma RSPs adjustment(2) .................. (9) (10) (12) (14)
------- ------- ------- -------
Total .................................. $ 143 $ 151 $ 156 $ 163
======= ======= ======= =======
Net income per share:(4)
Historical net income per share ............... $ 0.35 $ 0.30 $ 0.26 $ 0.22
Pro forma earnings on net proceeds ............ 0.14 0.15 0.15 0.15
Pro forma ESOP adjustment(1) .................. (0.03) (0.03) (0.03) (0.03)
Pro forma RSP adjustment(2) ................... (0.03) (0.03) (0.03) (0.03)
------- ------- ------- -------
Total(3) ............................... $ 0.43 $ 0.39 $ 0.35 $ 0.31
======= ======= ======= =======
Ratio of offering price to pro forma ^ income per
share(3) ........................................ 11.6x 12.8x 14.3x 16.1x
======= ======= ======= =======
Stockholders' equity:(4)
Historical .................................... $ 2,225 $ 2,225 $ 2,225 $ 2,225
Estimated net proceeds ........................ 3,198 3,820 4,443 5,158
Less: Common stock acquired by ESOP(1)........ (282) (332) (382) (439)
Common stock acquired by RSP(2) ........ (141) (166) (191) (220)
------- ------- ------- -------
Total ................................. $ 5,000 $ 5,547 $ 6,095 $ 6,724
======= ======= ======= =======
Stockholders' equity (book value) per share:(4)
Historical .................................... $ 6.31 $ 5.36 $ 4.66 $ 4.05
Estimated net proceeds ........................ 9.07 9.20 9.31 9.40
Less: Common stock acquire dby ESOP(1)........ (0.80) (0.80) (0.80) (0.80)
Common stock acquired by RSP(2) ........ (0.40) (0.40) (0.40) (0.40)
------- ------- ------- -------
Total .................................. $ 14.18 $ 13.36 $ 12.77 $ 12.25
======= ======= ======= =======
Offering price as percentage of pro forma
stockholders' equity per share(5) ............... 70.5% 74.9% 78.3% 81.6%
======= ======= ======= =======
</TABLE>
(Footnotes on following page)
23
<PAGE>
<TABLE>
<CAPTION>
At or For the Year Ended September 30, 1997
-----------------------------------------------------------------------
352,750 415,000 477,250 548,838
Shares at Shares at Shares at Shares at
$10.00 $10.00 $10.00 $10.00
Per Share Per Share Per Share Per Share
--------- --------- --------- ---------
(Dollars in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Gross proceeds........................................... $3,528 $4,150 $4,773 $5,488
Less estimated offering expenses......................... 330 330 330 330
----- ----- ----- -----
Estimated net proceeds................................. 3,198 3,820 4,443 5,158
Less: ESOP funded by the Company...................... 282 332 382 439
RSP funded by the Company....................... 141 166 191 220
----- ----- ----- -----
Estimated investable net proceeds: $2,775 $3,322 $3,870 $4,499
===== ===== ===== =====
Net income:
Historical net income.................................. $ 192 $ 192 $ 192 $ 192
Pro forma earnings on investable net proceeds.......... 95 113 132 153
Pro forma ESOP adjustment(1)........................... (18) (21) (24) (28)
Pro forma RSPs adjustment(2)........................... (18) (21) (24) (28)
------ ----- ----- -----
Total........................................... $ 251 $ 263 $ 276 $ 289
====== ===== ===== =====
Net income per share:(4)
Historical net income per share........................ $ 0.59 $ 0.50 $ 0.43 $ 0.38
Pro forma earnings on net proceeds..................... 0.29 0.29 0.30 0.30
Pro forma ESOP adjustment(1)........................... (0.05) (0.05) (0.05) (0.06)
Pro forma RSP adjustment(2)............................ (0.05) (0.05) (0.05) (0.06)
----- ------ ----- -----
Total(3)........................................ $ 0.78 $ 0.69 $ 0.63 $ 0.56
====== ====== ===== =====
Ratio of offering price to pro forma ^ income per
share(3)................................................. 12.8x 14.5x 15.9x 17.9x
==== ==== ==== ====
Stockholders' equity:(4)
Historical............................................. $2,088 $2,088 $2,088 $2,088
Estimated net proceeds................................. 3,198 3,820 4,443 5,158
Less: Common stock acquired by ESOP(1)................ (282) (332) (382) (439)
Common stock acquired by RSP(2)................. (141) (166) (191) (220)
----- ----- ----- -----
Total........................................... $4,863 $5,410 $5,958 $6,587
===== ===== ===== =====
Stockholders' equity (book value) per share:(4)
Historical............................................. $ 5.92 $ 5.03 $ 4.38 $ 3.80
Estimated net proceeds................................. 9.07 9.20 9.31 9.40
Less: Common stock acquired by ESOP(1)................ (0.80) (0.80) (0.80) (0.80)
Common stock acquired by RSP(2)................. (0.40) (0.40) (0.40) (0.40)
----- ----- ----- -----
Total........................................... $13.79 $13.03 $12.49 $12.00
====== ====== ===== =====
Offering price as percentage of pro forma
stockholders' equity per share(5)........................ 72.5% 76.8% 80.1% 83.3%
==== ==== ==== ====
</TABLE>
(Footnotes on following page)
24
<PAGE>
- -----------------
(1) Assumes 8% of the shares sold in the conversion are purchased by the ESOP,
and that the funds used to purchase such shares are borrowed from the
Company. The approximate amount expected to be borrowed by the ESOP is not
reflected as a liability but is reflected as a reduction of capital. We
intend to make annual contributions to the ESOP over a ten year period in
an amount at least equal to the principal and interest requirement of the
debt. The pro forma net income per share calculation assumes: (i) that
2,822, 3,320, 3,818 and 4,391 weighted average shares at the minimum,
mid-point, maximum and maximum, as adjusted of the EVR, were committed to
be released during the year ended September 30, 1997 and 1,411, 1,660,
1,909 and 2,195 weighted average shares at the minimum, midpoint, maximum
and maximum as adjusted were committed to be released during the six months
ended March 31, 1998, at an average fair value of $10.00 per share in
accordance with Statement of Position (SOP) 93-6 of the American Institute
of Certified Public Accountants ("AICPA"); (ii) the effective combined
federal and state income tax rate was 37% for such period; and (iii) only
the ESOP shares committed to be released were considered outstanding for
purposes of the per share net earnings. The pro forma stockholders' equity
per share calculation assumes all ESOP shares were outstanding, regardless
of whether such shares would have been released. Because the Company will
be providing the ESOP loan, only principal payments on the ESOP loan are
reflected as employee compensation and benefits expense. As a result, to
the extent the value of the shares appreciates over time, compensation
expense related to the ESOP will increase. For purposes of the preceding
tables, it was assumed that a ratable portion of the ESOP shares purchased
in the conversion were committed to be released during the periods ended
March 31, 1998 and September 30, 1997. See Note 3 below. If it is assumed
that all of the ESOP shares were included in the calculation of earnings
per share for the period ended at March 31, 1998, earnings per share would
have been $.41, $.36, $.33, and $.30, respectively, based on the sale of
shares at the minimum, midpoint, maximum and the maximum, as adjusted, of
the EVR. If it is assumed that all of the ESOP shares were included in the
calculation of earnings per share for the period ended at September 30,
1997, earnings per share would have been $.71, $.63, $.58, and $.53,
respectively, based on the sale of shares at the minimum, midpoint, maximum
and the maximum, as adjusted, of the EVR. See "Management of Peoples
Savings Bank -- Other Benefits -- Employee Stock Ownership Plan."
(2) Assumes the purchase by the RSP of 14,110, 16,600, 19,090 and 21,954 shares
at the minimum, mid-point, maximum, and maximum, as adjusted of the EVR.
The assumption in the pro forma calculation is that (i) shares were
purchased by the Company following the conversion, (ii) the purchase price
for the shares purchased by the RSP was equal to the purchase price of
$10.00 per share ^, (iii) 10% and 20% of the amount contributed was an
amortized expense during the periods ended March 31, 1998 and September 30,
1997, respectively, and (iv) the RSP amortized expenses are presented net
of taxes using an effective combined federal and state income tax rate of
37%. Such amount does not reflect possible increases or decreases in the
value of such stock relative to the Purchase Price. As we accrue
compensation expense to reflect the five year vesting period of such shares
pursuant to the RSP, the charge against capital will be reduced
accordingly. Implementation of the RSP within one year of conversion would
be subject to regulatory review and stockholder approval at a meeting of
our stockholders to be held no earlier than six months after the
conversion. If the shares to be purchased by the RSP are assumed at October
1, 1997 to be newly issued shares purchased from the Company by the RSP at
the Purchase Price, at the minimum, midpoint, maximum and maximum, as
adjusted, of the EVR, pro forma stockholders' equity per share would have
been $13.63, $12.85, $12.28 and $11.78, respectively, and pro forma
earnings per share would have been $.43, $.38, $.35 and $.32 for the six
months ended March 31, 1998. If the shares to be purchased by the RSP are
assumed at October 1, 1996 to be newly issued shares purchased from the
Company by the RSP at the Purchase Price, at the minimum, midpoint, maximum
and maximum, as adjusted, of the EVR, pro forma stockholders' equity per
share would have been $13.26, $12.53, $12.00 and $11.54, respectively, and
pro forma earnings per share would have been $.75, $.67, $.61 and $.56 for
the year ended September 30, 1997. If the RSP is funded from newly issued
shares, stockholders' voting interests could be diluted by up to
approximately ^ 3.8%. See "Management of Peoples Savings Bank -- Proposed
Future Stock Benefit Plans -- Restricted Stock Plan."
(3) Pro forma net income per share calculations include the number of shares
assumed to be sold in the conversion and, in accordance with SOP 93-6,
exclude ESOP shares which would not have been released during the period.
Accordingly, 26,809, 31,540, 36,271 and 41,712 shares have been subtracted
from the shares assumed to be sold at the minimum, mid-point, maximum, and
maximum, as adjusted, of the EVR, respectively, and 325,941, 383,460,
440,979 and 507,126 shares are assumed to be outstanding at the minimum,
mid-point, maximum, and maximum, as adjusted of the EVR. For the period
ended March 31, 1998, 25,398, 29,880, 34,362 and 39,516 shares have been
subtracted from the shares assumed to be sold at the minimum, midpoint,
maximum and maximum, as adjusted, of the EVR, respectively, and 327,352,
385,120,
25
<PAGE>
442,888 and 509,322 shares are assumed to be outstanding at the minimum,
midpoint, maximum and maximum, as adjusted, of the EVR for the period ended
September 30, 1997. See Note 1 above.
(4) Assumes that following the consummation of the conversion, the Company will
adopt the Option Plan, which if implemented within one year of conversion
would be subject to regulatory review and board of director and stockholder
approval, and that such plan would be considered and voted upon at a
meeting of the Company stockholders to be held no earlier than six months
after the conversion. Under the Option Plan, employees and directors could
be granted options to purchase an aggregate amount of shares equal to 10%
of the shares issued in the conversion at an exercise price equal to the
market price of the shares on the date of grant. In the event the shares
issued under the Option Plan were newly issued rather than purchased in the
open market, the voting interests of existing stockholders could be diluted
by up to approximately ^ 9.1%. At the minimum, midpoint, maximum and the
maximum, as adjusted, of the EVR, if all shares under the Option Plan were
newly issued at the beginning of the respective periods and the exercise
price for the option shares were equal to the Purchase Price, the number of
outstanding shares would increase to 361,216, 424,960, 488,704 and 562,010,
respectively, pro forma stockholders' equity per share at March 31, 1998,
would have been $13.79, $13.06, $12.52 and $12.05, respectively and pro
forma earnings per share would have been $.40, $.35, $.32 and $.29,
respectively, for the six months ended March 31, 1998. At the minimum,
midpoint, maximum and the maximum, as adjusted, of the EVR, if all shares
under the Option Plan were newly issued at the beginning of the period and
the exercise price for the option shares were equal to the Purchase Price,
the number of outstanding shares would increase to 362,627, 426,620,
490,613 and 564,205, respectively, pro forma stockholders' equity per share
at September 30, 1997 would have been $13.44, $12.76, $12.26 and $11.82,
respectively, and pro forma earnings per share would have been $.69, $.62,
$.56 and $.51, respectively.
(5) The amounts shown do not reflect the federal income tax consequences of the
potential restoration to income of the bad debt reserves for income tax
purposes, which would be required in the event of liquidation. The amounts
shown also do not reflect the amounts required to be distributed in the
event of liquidation to eligible depositors from the liquidation account
which will be established upon the consummation of the conversion. Pro
forma stockholders' equity information is not intended to represent the
fair market value of the shares, the current value of our assets or
liabilities or the amounts, if any, that would be available for
distribution to stockholders in the event of liquidation. Such pro forma
data may be materially affected by a change in the number of shares to be
sold in the conversion and by other factors.
26
<PAGE>
HISTORICAL AND PRO FORMA CAPITAL COMPLIANCE
The following table presents our historical and pro forma capital
position relative to our capital requirements as of March 31, 1998. For a
discussion of the assumptions underlying the pro forma capital calculations
presented below, see "Use of Proceeds," "Capitalization" and "Pro Forma Data."
The definitions of the terms used in the table are those provided in the capital
regulations issued by the OTS. For a discussion of the capital standards
applicable to us, see "Regulation -- Savings Institution Regulation --
Regulatory Capital Requirements."
<TABLE>
<CAPTION>
Pro Forma(1)
------------------------------------------------------------------------------------------
$5,488,380
$3,527,500 $4,150,000 $4,772,500 Maximum
Minimum Midpoint Maximum as adjusted
------------------- ------------------------- ---------------------- -------------------
Percentage Percentage Percentage Percentage Percentage
Amount of Assets(2) Amount of Assets(2) Amount of Assets(2) Amount of Assets(2) Amount of Assets(2)
------ ------------ ------ ------------ ------ ------------ ------ ------------ ------ ------------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GAAP Capital...... $ 2,225 5.75% $4,201 10.33% $4,592 11.19% $ 4,984 12 .03% $ 5,435 12.97%
====== ==== ===== ===== ===== ===== ======= ====== ====== =====
Tangible
Capital:(3)
Regulatory
requirement..... $ 579 1.50% $ 609 1.50% $ 615 1.50% $ 620 1.50% $ 627 1.50%
Actual capital.... 2,143 5.55 4,119 10.15 4,510 11.01 4,902 11.85 5,353 12.81
------- ---- ------ ----- ------ ----- -------- ----- ------- -----
Excess............ $ 1,564 4.05% $3,510 8.65% $3,895 9.51% $ 4,282 10.35% $ 4,726 11.31%
====== ==== ===== ===== ===== ===== ======= ===== ====== =====
Core
Capital:(3)
Regulatory
requirement(4).. $ 1,158 3.00% $1,217 3.00% $1,229 3.00% $ 1,241 3.00% $ 1,254 3.00%
Actual capital.... 2,143 5.55 4,119 10.15 4,510 11.01 4,902 11.85 5,353 12.81
------- ---- ------ ----- ------ ----- -------- ----- ------- -----
Excess............ $ 985 2.55% $2,902 7.15% $3,281 8.01% $ 3,661 8.85% $ 4,099 9.81%
====== ==== ===== ===== ===== ===== ======= ===== ====== =====
Risk-Based
Capital:(4)
Regulatory
requirement..... $ 1,538 8.00% $1,600 8.00% $1,612 8.00% $ 1,625 8.00% $ 1,640 8.00%
Actual capital.... 2,268 11.80 4,244 21.22 4,635 23.00 5,027 24.75 5,478 26.72
------- ----- ------ ----- ------ ----- -------- ----- ------- -----
Excess............ $ 730 3.80% $2,644 13.22% $3,023 15.00% $ 3,402 16.75% $ 3,838 18.72%
====== ===== ===== ===== ===== ===== ======= ===== ====== =====
</TABLE>
- ----------------
(1) Institutions must value available-for-sale debt securities at amortized
cost, rather than at fair value, for purposes of calculating regulatory
capital. Institutions are still required to comply with SFAS No. 115 for
financial reporting purposes. The pro forma data has been adjusted to
reflect reductions in our capital that would result from an assumed 8%
purchase by the ESOP and 4% purchase by the RSP as of March 31, 1998. It is
assumed that the Company will retain 25% of net proceeds from the offering.
See "Use of Proceeds."
(2) GAAP, adjusted, or risk-weighted assets as appropriate.
(3) The unrealized gain on securities available-for-sale of $82,460 has been
deducted from GAAP Capital to arrive at our Tangible and Core Capital.
(4) Our risk-weighted assets as of March 31, 1998, totalled approximately $19.2
million. Net proceeds available for investment by us are assumed to be
invested in interest-earning assets that have a 50% risk- weighing.
27
<PAGE>
THE CONVERSION
Our board of directors and the OTS have approved the Plan subject to
approval by our members, and subject to the satisfaction of certain other
conditions imposed by the OTS in its approval. OTS approval, however, does not
constitute a recommendation or endorsement of the Plan.
General
On March 2, 1998, our board of directors adopted a Plan of Conversion,
pursuant to which we will convert from a federally chartered mutual savings bank
to a federally chartered stock savings bank and become a wholly owned subsidiary
of the Company. The conversion will include adoption of the proposed federal
stock charter and bylaws which will authorize the issuance of capital stock by
us. Under the Plan, our capital stock is being sold to the Company and the
common stock of the Company is being offered to our eligible depositors and
other members and then to the public. The conversion will be accounted for at
historical cost in a manner similar to a pooling of interests. The OTS has
approved the Company's application to become a savings and loan holding company
and to acquire all of our common stock to be issued in the conversion.
The shares are first being offered in a subscription offering to
holders of subscription rights. To the extent shares of common stock remain
available after the subscription offering, shares of common stock may be offered
in a community offering on a best efforts basis in such a manner as to promote a
wide distribution of the shares. The community offering, if any, may commence
anytime subsequent to the commencement of the subscription offering. Shares not
subscribed for in the subscription and community offerings may be offered for
sale by the Company on a best efforts basis by a selling group of selected
broker/dealers (which may include Ryan Beck & Co.) in a syndicated community
offering managed by Ryan Beck & Co. We have the right, in our sole discretion,
to accept or reject, in whole or in part, any orders to purchase shares of the
common stock received in the community and syndicated community offerings. See
"-- Community Offering."
Shares of common stock in an amount equal to our pro forma market value
as a stock savings institution must be sold in order for the conversion to
become effective. The community offering or syndicated community offering must
be completed within 45 days after the last day of the subscription offering
period unless such period is extended by us with the approval of the OTS. The
Plan provides that the conversion must be completed within 24 months after the
date of the approval of the Plan by our members.
In the event that we are unable to complete the sale of common stock
and effect the conversion within 45 days after the end of the subscription
offering, we may request an extension of the period by the OTS. No assurance can
be given that the extension would be granted if requested. Due to the volatile
nature of market conditions, no assurances can be given that our valuation would
not substantially change during any such extension. If the EVR of the shares
must be amended, no assurance can be given that such amended EVR would be
approved by the OTS. Therefore, it is possible that if the conversion cannot be
completed within the requisite period, we may not be permitted to complete the
conversion. A substantial delay caused by an extension of the period may also
significantly increase the expense of the conversion. No sales of the shares may
be completed in the offering unless the Plan is approved by our members.
The completion of the offering is subject to market conditions and
other factors beyond our control. No assurance can be given as to the length of
time following approval of the Plan at the meeting
28
<PAGE>
of our members that will be required to complete the sale of shares being
offered in the conversion. If delays are experienced, significant changes may
occur in our estimated pro forma market value upon conversion together with
corresponding changes in the offering price and the net proceeds to be realized
by us from the sale of the shares. In the event the conversion is terminated, we
will charge all conversion expenses against current income and any funds
collected by us in the offering will be promptly returned, with interest, to
each potential investor.
Effects of Conversion to Stock Form on Depositors and Borrowers of Peoples
Savings Bank
Voting Rights. Currently in our mutual form, our depositor and certain
borrower members as of December 2, 1996, who continue to be borrowers have
voting rights and may vote for the election of directors. Following the
conversion, all voting rights will be held solely by stockholders.
Savings Accounts and Loans. The balances, terms and FDIC insurance
coverage of savings accounts will not be affected by the conversion.
Furthermore, the amounts and terms of loans and obligations of the borrowers
under their individual contractual arrangements with us will not be affected by
the conversion.
Tax Effects. We have received an opinion from our counsel, Malizia,
Spidi, Sloane & Fisch, P.C., on the federal tax consequences of the conversion.
The opinion has been filed as an exhibit to the registration statement of which
this prospectus is a part and covers those federal tax matters that are material
to the transaction. The opinion provides, in part, that: (i) the conversion will
qualify as a reorganization under Section 368(a)(1)(F) of the Code, and no gain
or loss will be recognized by us by reason of the proposed conversion; (ii) no
gain or loss will be recognized by us upon the receipt of money from the Company
for our stock, and no gain or loss will be recognized by the Company upon the
receipt of money for the shares; (iii) our assets will have the same basis
before and after the conversion; (iv) the holding period of our assets will
include the period during which the assets were held by us in our mutual form;
(v) no gain or loss will be recognized by the Eligible Account Holders,
Supplemental Eligible Account Holders, and Other Members upon the issuance to
them of withdrawable savings accounts in us in the stock form in the same dollar
amount as their savings accounts in us in the mutual form plus an interest in
our liquidation account in the stock form in exchange for their savings accounts
in us in the mutual form; (vi) provided that the amount to be paid for the
shares pursuant to the subscription rights is equal to the fair market value of
such shares, no gain or loss will be recognized by Eligible Account Holders,
Supplemental Eligible Account Holders, and Other Members under the Plan upon the
distribution to them of nontransferable subscription rights; (vii) the basis of
each account holder's savings accounts after the conversion will be the same as
the basis of his savings accounts prior to the conversion, decreased by the fair
market value of the nontransferable subscription rights received and increased
by the amount, if any, of gain recognized on the exchange; (viii) the basis of
each account holder's interest in the liquidation account will be zero; (ix) the
holding period of the common stock acquired through the exercise of subscription
rights shall begin on the date on which the subscription rights are exercised;
(x) we will succeed to and take into account our earnings and profits or deficit
in earnings and profits as of the date of conversion; (xi) immediately after
conversion, we will succeed to the bad debt reserve accounts previously held by
us, and the bad debt reserves will have the same character in our hands after
conversion as if no distribution or transfer had occurred; and (xii) the
creation of the liquidation account will have no effect on our taxable income.
The opinion from Malizia, Spidi, Sloane & Fisch, P.C. is based in part
on the assumption that the exercise price of the subscription rights will be
approximately equal to the fair market value of those shares at the time of the
completion of the proposed conversion. We have received an opinion of FinPro,
Inc. which, based on certain assumptions, concludes that the subscription rights
to be received by Eligible
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Account Holders and other eligible subscribers do not have any economic value at
the time of distribution or at the time the subscription rights are exercised.
Such opinion is based on the fact that such rights are: (i) acquired by the
recipients without payment therefor, (ii) non-transferable, (iii) of short
duration, and (iv) afford the recipients the right only to purchase shares at a
price equal to their estimated fair market value, which will be the same price
at which shares for which no subscription right is received in the subscription
offering will be offered in a community offering. If the subscription rights
granted to Eligible Account Holders or other eligible subscribers are deemed to
have an ascertainable value, receipt of such rights would be taxable only to
those Eligible Account Holders or other eligible subscribers who exercise the
subscription rights in an amount equal to such value (either as a capital gain
or ordinary income), and we could recognize gain on such distribution.
We are also subject to New Jersey income taxes and have received an
opinion from ^ Lewis W. Parker, III that the conversion will be treated for New
Jersey state tax purposes similar to the conversion's treatment for federal tax
purposes. The opinion has been filed as an exhibit to the registration statement
to which this prospectus is a part and covers those state tax matters that are
material to the transaction.
Unlike a private letter ruling, the opinions of Malizia, Spidi, Sloane
& Fisch, P.C., ^ Lewis W. Parker, III and FinPro, Inc. have no binding effect or
official status, and no assurance can be given that the conclusions reached in
any of those opinions would be sustained by a court if contested by the IRS or
the New Jersey tax authorities. Eligible Account Holders, Supplemental Eligible
Account Holders, and Other Members are encouraged to consult with their own tax
advisers as to the tax consequences in the event the subscription rights are
deemed to have an ascertainable value.
Liquidation Account. In the unlikely event of our complete liquidation
in our present mutual form, each depositor is entitled to equal distribution of
any of our assets, pro rata according to the value of his/her accounts,
remaining after payment of claims of all creditors (including the claims of all
depositors to the withdrawal value of their accounts). Each depositor's pro rata
share of such remaining assets would be in the same proportion as the value of
his/her deposit accounts was to the total value of all deposit accounts held by
us at the time of liquidation.
Upon a complete liquidation after the conversion, each depositor would
have a claim, as a creditor, of the same general priority as the claims of all
of our other general creditors. Therefore, except as described below, a
depositor's claim would be solely in the amount of the balance in his deposit
account plus accrued interest. A depositor would not have an interest in the
residual value of our assets above that amount, if any.
The Plan provides for the establishment, upon completion of the
conversion, of a special "liquidation account" for the benefit of Eligible
Account Holders and Supplemental Eligible Account Holders. Each Eligible Account
Holder and Supplemental Eligible Account Holder, if he continues to maintain his
deposit account with us, would be entitled, upon our complete liquidation after
conversion, to an interest in the liquidation account prior to any payment to
stockholders. Each Eligible Account Holder would have an initial interest in
such liquidation account for each deposit account held in us on the qualifying
date, December 31, 1996. Each Supplemental Eligible Account Holder would have a
similar interest as of the qualifying date, June 30, 1998. The interest as to
each deposit account would be in the same proportion of the total liquidation
account as the balance of the deposit account on the qualifying dates was to the
aggregate balance in all the deposit accounts of Eligible Account Holders and
Supplemental Eligible Account Holders on such qualifying dates. However, if the
amount in the deposit account on any annual closing date (September 30) is less
than the amount in such account on the respective qualifying dates, then the
interest in this special liquidation account would be reduced at that
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time by an amount proportionate to any such reduction, and the interest would
cease to exist if such deposit account was closed. The interest in the special
liquidation account will never be increased despite any increase in the related
deposit account after the respective qualifying dates.
No merger, consolidation, purchase of bulk assets with assumptions of
savings accounts and other liabilities, or similar transactions with another
insured institution in which transaction we in our converted form are not the
surviving institution shall be considered a complete liquidation. In such
transactions, the liquidation account shall be assumed by the surviving
institution.
Subscription Rights and the Subscription Offering
Non-transferable subscription rights to purchase shares of the common
stock have been granted to persons and entities entitled to purchase shares in
the subscription offering under the Plan. If the community offering or
syndicated community offering, as described below, extends beyond 45 days
following the completion of the subscription offering, subscribers will be
resolicited. Subscription priorities have been established for the allocation of
stock to the extent that more shares are subscribed for than are to be issued in
the conversion subject to the purchase limitations set forth in the Plan and as
described below under "-- Limitations on Purchases and Transfer of Shares." The
following priorities have been established:
Category 1: Eligible Account Holders (First Priority). Eligible Account Holders
are persons who had a deposit account of at least $50 with us on December 31,
1996. Each Eligible Account Holder will receive non-transferable subscription
rights on a priority basis to purchase that number of shares of common stock
which is equal to the greater of 6,000 shares ($60,000), or 15 times the product
(rounded down to the next whole number) obtained by multiplying the total number
of shares to be issued by a fraction of which the numerator is the amount of the
qualifying deposit of the Eligible Account Holder and the denominator is the
total amount of qualifying deposits of all Eligible Account Holders (subject to
the maximum purchase limitation). If there is an oversubscription in this
category, shares shall be allocated among subscribing Eligible Account Holders
so as to permit each such account holder, to the extent possible, to purchase
the lesser of 100 shares or the total amount of his subscription. Any shares not
so allocated shall be allocated among the subscribing Eligible Account Holders
on an equitable basis, related to the amounts of their respective qualifying
deposits as compared to the total qualifying deposits of all subscribing
Eligible Account Holders. Only a person(s) with a qualifying deposit as of the
eligibility record date (or a successor entity or estate) shall receive
subscription rights in this category. Any Person(s) added to a Savings Account
after the Eligibility Record Date is not an Eligible Account Holder.
Subscription rights received by officers and directors in this category based on
their increased deposits with us in the one-year period preceding December 31,
1996, are subordinated to the subscription rights of other Eligible Account
Holders. See "-- Limitations on Purchases and Transfer of Shares."
To ensure proper allocation of stock, each Eligible Account Holder must
list on his order form all deposit accounts in which he has an ownership
interest on the Eligibility Record Date. Failure to list an account could result
in fewer shares being allocated than if all accounts had been disclosed. Neither
the Company nor the Bank nor any of their agents shall be responsible for orders
on which all qualifying deposits have not been fully and accurately disclosed.
Category 2: Tax-Qualified Employee Benefit Plans (Second Priority). Our
tax-qualified employee benefit plans ("Employee Plans") have been granted
subscription rights to purchase up to 10% of the total shares issued in the
conversion. The ESOP is an Employee Plan.
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The right of Employee Plans to subscribe for shares is subordinate to
the right of the Eligible Account Holders to subscribe for shares. However, in
the event the offering results in the issuance of shares above the maximum of
the EVR (i.e., more than ^ 477,250 shares), the Employee Plans have a priority
right to fill their subscription (the ESOP, the only Employee Plan, currently
intends to purchase up to 8% of the common stock issued in the conversion). The
Employee Plans may, however, determine to purchase some or all of the shares
covered by their subscriptions after the conversion in the open market or, if
approved by the OTS, out of authorized but unissued shares in the event of an
oversubscription.
Category 3: Supplemental Eligible Account Holders (Third Priority). Supplemental
Eligible Account Holders are persons who had a deposit account of at least $50
with us on June 30, 1998. Each Supplemental Eligible Account Holder who is not
an Eligible Account Holder will receive non-transferable subscription rights to
purchase that number of shares which is equal to the greater of 6,000 shares
($60,000), or 15 times the product (rounded down to the next whole number)
obtained by multiplying the total number of shares to be issued by a fraction of
which the numerator is the amount of the qualifying deposit of the Supplemental
Eligible Account Holder and the denominator is the total amount of qualifying
deposits of all Supplemental Eligible Account Holders (subject to the maximum
purchase limitation). If the allocation made in this paragraph results in an
oversubscription, shares shall be allocated among subscribing Supplemental
Eligible Account Holders so as to permit each such account holder, to the extent
possible, to purchase the lesser of 100 shares or the total amount of his
subscription. Any shares not so allocated shall be allocated among the
subscribing Supplemental Eligible Account Holders on an equitable basis, related
to the amounts of their respective qualifying deposits as compared to the total
qualifying deposits of all subscribing Supplemental Eligible Account Holders.
See "--Limitations on Purchases and Transfer of Shares."
The rights of Supplemental Eligible Account Holders to subscribe for
shares is subordinate to the rights of the Eligible Account Holders and Employee
Plans to subscribe for shares.
Category 4: Other Members (Fourth Priority). Other Members are persons who have
a deposit account of at least $50 on ________ ____, 1998, the voting record date
of our special meeting, and borrowers as of December 2, 1996 who continue to be
borrowers as of the date of our special meeting. Each Other Member who is not an
Eligible Account Holder or Supplemental Eligible Account Holder, will receive
non-transferable subscription rights to purchase up to 6,000 shares ($60,000) to
the extent such shares are available following subscriptions by Eligible Account
Holders, Employee Plans, and Supplemental Eligible Account Holders. In the event
there are not enough shares to fill the orders of the Other Members, the
subscriptions of the Other Members will be allocated so that each subscribing
Other Member will be entitled to purchase the lesser of 100 shares or the number
of shares ordered. Any remaining shares will be allocated among Other Members
whose subscriptions remain unsatisfied on a 100 share (or whatever lesser amount
is available) per order basis until all orders have been filled on the remaining
shares have been allocated. See "-- Limitations on Purchases and Transfer of
Shares."
Members in Non-Qualified States. We will make reasonable efforts to
comply with the securities laws of all states in the United States in which
persons entitled to subscribe for the shares pursuant to the Plan reside.
However, no person will be offered or allowed to purchase any shares under the
Plan if he resides in a foreign country or in a state with respect to which any
of the following apply: (i) a small number of persons otherwise eligible to
subscribe for shares under the Plan reside; (ii) the granting of subscription
rights or offer or sale of shares of common stock to those persons would require
either us or our employees to register under the securities laws of that state
or foreign country as a broker or dealer, or to register or otherwise qualify
our securities for sale in that state or foreign country; or (iii)
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such registration or qualification would be impracticable for reasons of cost or
otherwise. No payments will be made in lieu of the granting of subscription
rights to any person.
Restrictions on Transfer of Subscription Rights and Shares. Persons are
prohibited from transferring or entering into any agreement or understanding to
transfer the legal or beneficial ownership of their subscription rights.
Subscription rights may be exercised only by the person to whom they are granted
and only for his or her account. Each person subscribing for shares will be
required to certify that he/she is purchasing shares solely for his/her own
account and has not entered into an agreement or understanding regarding the
sale or transfer of those shares. The regulations also prohibit any person from
offering or making an announcement of an offer or intent to make an offer to
purchase subscription rights or shares of common stock prior to the completion
of the conversion.
We will pursue any and all legal and equitable remedies in the event we
become aware of the transfer of subscription rights and will not honor orders we
believe to involve the transfer of subscription rights or which appear to us to
present other irregularities.
Expiration Date. The Subscription Offering will expire at 12:00 noon,
Eastern Time, on ________ ____, 1998 (Expiration Date). Subscription rights will
become void if not exercised prior to the Expiration Date.
Community Offering
To the extent that shares remain available and subject to market
conditions at or near the completion of the subscription offering, we may offer
shares to certain members of the general public in a community offering, with a
preference given to natural persons who reside in Burlington County, New Jersey.
Any orders received in connection with the community offering, if any, will
receive a lower priority than orders properly made in the subscription offering
by persons exercising Subscription Rights. Common stock sold in the community
offering will be sold at the same price as all shares in the subscription
offering. We have the right to reject any orders in whole or in part in the
community offering.
No person or persons ordering through a single account, nor any person,
associate or group of persons acting in concert may purchase more than 6,000
shares or $60,000 of stock sold in the conversion. To order common stock in
connection with the community offering, if held, an executed stock order form
along with full payment must be received prior to the termination of the
community offering.
The date by which orders must be received in the community offering
^("Community Offering Expiration Date") will be set by us at the time of
commencement of the community offering; provided however, if the offering is
extended beyond ________ ____, 1998, each subscriber will have the opportunity
to maintain, modify, or rescind his order. In such event, all funds received in
the community offering will be promptly returned with interest unless the
subscriber affirmatively indicates otherwise.
In the event that an order is not accepted in the community offering or
that the conversion is not consummated, we will promptly refund with interest
the funds received. If the appraisal of the estimated market value of the Bank
and the Company is less than $3,527,500 or more than $5,488,380, each subscriber
will have the right to modify or rescind his order.
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Syndicated Community Offering
To the extent that shares remain available and subject to market
conditions we may offer shares of common stock not purchased in the subscription
and community offerings in a syndicated community offering through a syndicate
of selected broker/dealers to be formed and managed by Ryan, Beck & Co. The
syndicated community offering, if held, will be conducted to achieve the widest
distribution of shares, subject to our right to reject orders in whole or in
part in our sole discretion. Neither Ryan, Beck & Co. nor any registered
broker/dealer will have any obligation to take or purchase any shares in the
syndicated community offering. Shares sold in the syndicated community offering
will be sold at $10.00 per share.
The purchase limitations that apply in the subscription and community
offerings also apply in the syndicated community offering. In the event of a
syndicated community offering, Ryan, Beck & Co. will form a selling group of
selected NASD member firms ^(which may include Ryan, Beck & Co.) under a
selected dealers' agreement. The Company will pay a fee equal to 5.5% of the
aggregate amount of stock sold pursuant to such selected dealer agreements.
Ryan, Beck & Co. will not commence a syndicated community offering through such
a selling group without the Company's prior approval. See "The Conversion --
Marketing Arrangements" and "-- Community Offering."
The syndicated community offering will terminate not more than 45 days
following the Expiration Date, unless we further extend the offering with the
approval of the OTS and we resolicit subscribers.
Ordering and Receiving Shares
Use of Order Forms. Rights to subscribe for stock in the subscription
offering or to purchase stock in the community offering (if any) may only be
exercised by completing an original order form and certification. Persons
ordering shares in the subscription offering must deliver by mail or in person a
properly completed and signed original order form to us prior to the Expiration
Date. Order forms must be accompanied by full payment for all shares ordered.
See "-- Payment for Shares." Subscription rights under the Plan will expire on
the Expiration Date, whether or not we have been able to locate each person
entitled to subscription rights. Once submitted, subscription orders cannot be
revoked without our consent unless the conversion is not completed within 45
days of the Expiration Date.
In the event an order form (i) is not delivered and is returned to us
by the United States Postal Service or we are unable to locate the addressee,
(ii) is not received or is received after the Expiration Date, (iii) is
defectively completed or executed, or (iv) is not accompanied by full payment
for the shares subscribed for (including instances where a savings account or
certificate balance from which withdrawal is authorized is insufficient to fund
the amount of such required payment), the subscription rights for the person to
whom such rights have been granted will lapse as though that person failed to
return the completed order form within the time period specified. We may, but
will not be required to, waive any irregularity on any order form or require the
submission of corrected order forms or the remittance of full payment for
subscribed shares by such date as we specify. The waiver of an irregularity on
an order form in no way obligates us to waive any other irregularity on that or
on any other order form. Waivers will be considered on a case by case basis.
Photocopies of order forms, payments from private third parties, or electronic
transfers of funds will not be accepted. Our interpretation of the terms and
conditions of the Plan and of the acceptability of the order forms will be
final. We have the right to investigate any irregularity on any order form.
To ensure that each purchaser receives a prospectus at least 48 hours
before the Expiration Date in accordance with Rule 15c2-8 of the Exchange Act,
no prospectus will be mailed any later than five
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days prior to such date or hand delivered any later than two days prior to such
date. Execution of the order form will confirm receipt or delivery in accordance
with Rule l5c2-8. Order forms will only be distributed with a prospectus.
Payment for Shares. Payment for shares of common stock may be made (i)
in cash, if delivered in person, (ii) by check or money order, or (iii) by
authorization of withdrawal from savings accounts (including certificates of
deposit) maintained with us. Orders of $25,000 or more must be paid by Bank
account withdrawals, certified funds, cashier's check or money order.
Appropriate means by which such withdrawals may be authorized are provided for
in the order form. Once such a withdrawal has been authorized, no portion of the
designated withdrawal amount may be used by the subscriber for any purpose other
than to purchase the shares. Where payment has been authorized to be made
through withdrawal from a savings account, the sum authorized for withdrawal
will continue to earn interest at the contract rate until the conversion has
been completed or terminated. Interest penalties for early withdrawal applicable
to certificate accounts will not apply to withdrawals authorized for the
purchase of shares; however, if a partial withdrawal results in a certificate
account with a balance less than the applicable minimum balance requirement, the
certificate evidencing the remaining balance will earn interest at the passbook
savings account rate subsequent to the withdrawal. Payments made in cash or by
check or money order, will be placed in a segregated savings account and
interest will be paid by us at our passbook savings account rate from the date
payment is received until the conversion is completed or terminated. An executed
order form, once received by us, may not be modified, amended, or rescinded
without our consent, unless the conversion is not completed within 45 days after
the conclusion of the subscription offering, in which event subscribers may be
given an opportunity to increase, decrease, or rescind their order. In the event
that the conversion is not consummated, all funds submitted pursuant to the
offering will be refunded promptly with interest.
Owners of self-directed IRAs may use the assets of such IRAs to
purchase shares in the offering. Persons with IRAs maintained with us must have
their accounts transferred to a self-directed IRA at an unaffiliated institution
or to a broker to purchase shares in the offering. There will be no early
withdrawal or IRS interest penalties for such transfers. The Stock Information
Center can assist you in transferring your self-directed IRA. Because of the
paperwork involved, persons owning IRAs who wish to use their IRA account to
purchase stock in the offering, must contact the Stock Information Center no
later than ________ ____, 1998.
The ESOP may subscribe for shares by submitting its order form along
with evidence of a loan commitment from a financial institution or the Company
for the purchase of the shares during the subscription offering and by making
payment for shares on the date of completion of the conversion.
Federal regulations prohibit us from lending funds or extending credit
to any person to purchase shares in the conversion.
Delivery of Stock Certificates. Certificates representing shares of
common stock issued in the conversion will be mailed to the person(s) at the
address noted on the order form, as soon as practicable following consummation
of the conversion. Any certificates returned as undeliverable will be held until
properly claimed or otherwise disposed. Persons ordering shares might not be
able to sell their shares until they receive their stock certificates.
Plan of Distribution
Materials for the offering have been distributed to eligible
subscribers by mail. Additional copies are available at our Stock Information
Center. Our officers may be available to answer questions about
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the conversion. Responses to questions about us will be limited to the
information contained in this document. Officers will not be authorized to
render investment advice. All subscribers for the shares being offered will be
instructed to send payment directly to us. The funds will be held in a
segregated special escrow account and will not be released until the closing of
the conversion or its termination.
Marketing Arrangements
We have engaged Ryan, Beck & Co. as our financial advisor in connection
with the offering. Ryan, Beck & Co. has agreed to exercise its best efforts to
assist us in the sale of the shares in the offering. Ryan, Beck & Co. will
receive a fee of $125,000, which will include reimbursement for out-of-pocket
expenses (including legal fees and out-of-pocket expenses of such counsel)
incurred by Ryan, Beck & Co. We have also agreed to indemnify Ryan, Beck & Co.
for reasonable costs and expenses in connection with certain claims or
liabilities which might be asserted against Ryan, Beck & Co. This
indemnification covers the investigation, preparation of defense and defense of
any action, proceeding or claim relating to, among other things,
misrepresentation or breach of warranty of the written agreement between Ryan,
Beck & Co. and the Bank or the omission or alleged omission of a material fact
required to be stated or necessary in order to make disclosure in the prospectus
and related documents not misleading. In the event that a syndicated community
offering is conducted, we will pay Ryan, Beck & Co. a fee equal to 5.5% of the
aggregate amount of our common stock sold pursuant to any selected dealer
agreements Ryan, Beck has entered into with any broker/dealer. Ryan, Beck & Co.
will, however, not commence sales through these broker/dealers without our prior
approval.
The shares will be offered principally by the distribution of this
document and through activities conducted at the Stock Information Center. The
Stock Information Center is expected to operate during our normal business hours
throughout the offering. A registered representative employed by Ryan, Beck &
Co. will be working at, and supervising the operation of, the Stock Information
Center. Ryan, Beck & Co. will assist us in responding to questions regarding the
conversion and the offering and processing order forms. Our personnel will be
present in the Stock Information Center to assist Ryan, Beck & Co. with clerical
matters and to answer questions related solely to our business.
Stock Pricing
We have retained FinPro, Inc., an independent consulting and appraisal
firm, which is experienced in the evaluation and appraisal of business entities,
including savings institutions involved in the conversion process, to prepare an
appraisal of our estimated market value. FinPro, Inc. will receive fees of
$13,000 for preparing the appraisal and $11,000 for its assistance in connection
with the preparation of a business plan and also will be reimbursed for
reasonable out-of-pocket expenses. We have agreed to indemnify FinPro, Inc.
under certain circumstances against liabilities and expenses arising out of or
based on the services provided by FinPro, Inc.
FinPro, Inc. has prepared the appraisal in reliance upon the
information contained herein, including the financial statements. The appraisal
contains an analysis of a number of factors including, but not limited to, our
financial condition and operating trends, the competitive environment within
which we operate, operating trends of certain savings institutions and savings
and loan holding companies, relevant economic conditions, both nationally and in
the State of New Jersey, which affect the operations of savings institutions,
and stock market values of certain savings institutions. In addition, FinPro,
Inc. has advised us that it has considered the effect of the additional capital
raised by the sale of the shares on our estimated aggregate pro forma market
value.
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On the basis of the above, FinPro, Inc. has determined, in its opinion,
that as of June 12, 1998, our estimated market value was $4,150,000. OTS
regulations require, however, that the appraiser establish a range of value for
the stock to allow for fluctuations in the aggregate value of the stock due to
changing market conditions and other factors. Accordingly, FinPro, Inc. has
established a range of value from $3,527,500 to $4,772,500 for the offering, the
EVR. The EVR will be updated prior to consummation of the conversion and the EVR
may increase to $5,488,380 without resolicitation of subscriptions.
The board of directors has reviewed the independent appraisal,
including the stated methodology of the independent appraiser and the
assumptions used in the preparation of the independent appraisal. The board of
directors is relying upon the expertise, experience and independence of the
appraiser and is not qualified to determine the appropriateness of the
assumptions.
In order for stock sales to take place FinPro, Inc. must confirm to the
OTS that, to the best of FinPro, Inc.'s knowledge and judgment, nothing of a
material nature has occurred which would cause FinPro, Inc. to conclude that the
aggregate sale price for the shares would not be compatible with FinPro, Inc.'s
estimate of our pro forma market value immediately upon conversion. If, however,
facts do not justify such a statement, an amended EVR may be established.
The appraisal is not a recommendation of any kind as to the
advisability of purchasing these shares. In preparing the appraisal, FinPro,
Inc. has relied upon and assumed the accuracy and completeness of the financial
and statistical information we provided them. FinPro, Inc. did not independently
verify the financial statements and other information we provided, nor did
FinPro, Inc. independently value our assets and liabilities. The appraisal
considers us only as a going concern and it should not be viewed as our
liquidation value. Moreover, because the appraisal is based upon estimates and
projections of a number of matters which are subject to change, the market price
of the common stock could decline below $10.00.
Change in Number of Shares to be Issued in the Conversion
Depending on market and financial conditions at the time of the
completion of the offering, we may significantly increase or decrease the number
of shares to be issued in the conversion. In the event of an increase in the
valuation, we may increase the total number of shares to be issued in the
conversion. An increase in the total number of shares to be issued in the
conversion would decrease a subscriber's percentage ownership interest and the
pro forma net worth (book value) per share and increase the pro forma net income
and net worth (book value) on an aggregate basis. In the event of a material
reduction in the valuation, we may decrease the number of shares to be issued to
reflect the reduced valuation. A decrease in the number of shares to be issued
in the conversion would increase a subscriber's percentage ownership interest
and the pro forma net worth (book value) per share and decrease pro forma net
income and net worth on an aggregate basis.
Persons ordering shares will not be permitted to modify or cancel their
orders unless the change in the number of shares to be issued in the conversion
results in an offering which is either less than $3,527,500 or more than
$5,488,380. Persons who did not subscribe for shares will not have the
opportunity to do so.
Limitations on Purchases and Transfer of Shares
The Plan provides for certain additional purchase limitations. The
minimum purchase is 25 shares and the maximum purchase for any person or persons
ordering through a single account, or for
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any person, associate, or group of persons acting in concert, is 6,000 shares.
However, the Employee Plans may purchase up to 10% of the shares sold. The OTS
regulations governing the conversion provide that officers and directors and
their associates may not purchase, in the aggregate, more than 35% of the shares
issued pursuant to the conversion.
Depending on market conditions and the results of the offering, the
board of directors may, if the OTS agrees, increase or decrease any of the
purchase limitations without the approval of our members and without
resoliciting subscribers. If the maximum purchase limitation is increased,
persons who ordered the maximum amount will be given the first opportunity to
increase their orders. In doing so the preference categories in the offerings
will be followed.
In the event of an increase in the total number of shares offered in
the conversion due to an increase in the EVR of up to 15% (the "Adjusted
Maximum"), the additional shares will be allocated in the following order of
priority: (i) to fill the Employee Plans' subscription of up to 10% of the
Adjusted Maximum number of shares (the ESOP currently intends to subscribe for
8%); (ii) in the event that there is an oversubscription by Eligible Account
Holders, to fill unfulfilled subscriptions of Eligible Account Holders; (iii) in
the event that there is an oversubscription by Supplemental Eligible Account
Holders, to fill unfulfilled subscriptions to Supplemental Eligible Account
Holders; (iv) in the event that there is an oversubscription by Other Members,
to fill unfulfilled subscriptions of Other Members; and (v) to fill unfulfilled
subscriptions in the community offering to the extent possible.
The term "associate" of a person means (i) any corporation or
organization (other than us or a majority-owned subsidiary of ours) of which
such person is an officer or partner or is, directly or indirectly, the
beneficial owner of 10% or more of any class of equity securities, (ii) any
trust or other estate in which such person has a substantial beneficial interest
or as to which such person serves as trustee or in a similar fiduciary capacity
(excluding tax-qualified employee stock benefit plans), and (iii) any relative
or spouse of such person or any relative of such spouse, who has the same home
as such person or who is one of our directors or officers, or a director or
officer of the Company or of any of our subsidiaries. For example, a corporation
of which a person serves as an officer would be an associate of that person, and
therefore all shares purchased by that corporation would be included with the
number of shares which that person individually could purchase pursuant to the
above limitations.
The term "officer" may include our chairman of the board, president,
vice presidents in charge of principal business functions, secretary and
treasurer and any other person performing similar functions. All references
herein to an officer have the same meaning as used for an officer in the Plan.
To order shares in the conversion, persons must certify that their
purchase does not conflict with the purchase limitations. In the event that the
purchase limitations are exceeded by any person (including any associate or
group of persons affiliated or otherwise acting in concert with such persons),
we will have the right to purchase from that person at $10.00 per share all
shares acquired by that person in excess of the purchase limitations. If the
excess shares have been sold by that person, we may recover the profit from the
sale of the shares by that person. We may assign our right either to purchase
the excess shares or to recover the profits from their sale.
Shares of common stock purchased pursuant to the conversion will be
freely transferable, except for shares purchased by our directors and officers.
For certain restrictions on the shares purchased by directors and officers, see
"-- Restrictions on Sales and Purchases of Shares by Directors and Officers." In
addition, under guidelines of the NASD, members of the NASD and their associates
are subject to certain restrictions on the transfer of securities purchased in
accordance with subscription rights and to certain reporting requirements upon
purchase of such securities.
38
<PAGE>
Restrictions on Repurchase of Shares
Generally, during the first year following the conversion, the Company
may not repurchase its shares and during each of the second and third years
following the conversion, the Company may repurchase up to five percent of the
outstanding shares provided they are purchased in open-market transactions.
Repurchases must not cause us to become undercapitalized and at least 10 days
prior notice of the repurchase must be provided to the OTS. The OTS may
disapprove a repurchase program upon a determination that (1) the repurchase
program would adversely affect our financial condition, (2) the information
submitted is insufficient upon which to base a conclusion as to whether the
financial condition would be adversely affected, or (3) a valid business purpose
was not demonstrated. However, the OTS may grant special permission to
repurchase shares after six months following the conversion and to repurchase
more than five percent during each of the second and third years. In addition,
SEC rules also govern the method, time, price, and number of shares of common
stock that may be repurchased by the Company and affiliated purchasers. If, in
the future, the rules and regulations regarding the repurchase of stock are
liberalized, the Company may utilize the rules and regulations then in effect.
Restrictions on Sales and Purchases of Shares by Directors and Officers
Shares purchased by directors and officers of the Company may not be
sold for one year following the conversion, except in the event of the death of
the director or officer. Any shares issued to directors and officers as a stock
dividend, stock split, or otherwise with respect to restricted stock shall be
subject to the same restrictions.
For three years following the conversion, directors and officers may
purchase shares only through a registered broker or dealer. Exceptions are
available only if the OTS has approved the purchase or the purchase is an arm's
length transaction and involves more than one percent of the outstanding shares.
Interpretation and Amendment of the Plan
We have the authority to interpret and amend the Plan. Our
interpretations are final. Amendments to the Plan after the receipt of member
approval will not need further member approval unless required by the OTS.
Conditions and Termination
Completion of the conversion requires (i) the approval of the Plan by
the affirmative vote of a majority of the total number of votes eligible to be
cast by our members, and (ii) completion of the sale of shares within 24 months
following approval of the Plan by our members. If these conditions are not
satisfied, the Plan will be terminated and we will continue our business in the
mutual form of organization. We may terminate the Plan at any time prior to the
meeting of members to vote on the Plan or at any time thereafter with the
approval of the OTS.
Other
All statements made in this document are hereby qualified by the
contents of the Plan of Conversion, the material terms of which are set forth
herein. The Plan of Conversion is attached to the proxy statement mailed to
certain depositors and borrowers. Copies of the Plan are available from us and
should be consulted for further information. Adoption of the Plan by our members
authorizes us to interpret, amend or terminate the Plan.
39
<PAGE>
PEOPLES SAVINGS BANK
STATEMENTS OF INCOME
The following Statements of Income for each of the fiscal years in the
two fiscal periods ended September 30, 1997 and 1996, have been audited by Lewis
W. Parker, III, independent certified public accountant. The unaudited
Statements of Income for the six months ended March 31, 1998 and 1997, in the
opinion of management, reflect all adjustments (consisting only of normal
recurring accruals) necessary for a fair presentation. The data for the six
months ended March 31, 1998, is not necessarily indicative of the results of
operations that might be expected for the full fiscal year.
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, September 30,
1998 1997 1997 1996
----------- ----------- ------------ --------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Interest income:
Loans receivable................................ $1,106,434 $ 976,936 $2,034,408 $1,778,091
Securities available-for-sale................... 9,346 8,062 21,049 66,236
Securities held-to-maturity..................... 125,746 196,733 402,617 350,515
Mortgage-backed securities held-to-
maturity...................................... 90,990 80,895 176,755 173,957
---------- ---------- ---------- ----------
Total interest income.................... 1,332,516 1,262,626 2,634,829 2,368,799
--------- --------- --------- ---------
Interest expense:
Deposits........................................ 676,511 625,839 1,328,640 1,186,639
Federal Home Loan Bank advances................. 500 62,012 80,443 35,282
----------- ---------- ---------- ----------
Total interest expense................... 677,011 687,851 1,409,083 1,221,921
Net interest income............................... 655,505 574,775 1,225,746 1,146,878
Provision for loan losses......................... 59,000 4,000 8,000 12,500
---------- ---------- ----------- ----------
Net interest income after provision
for loan losses................................. 596,505 570,775 1,217,746 1,134,378
---------- --------- --------- ---------
Noninterest income:
Fees and other service charges.................. 77,913 79,404 148,251 109,791
Collection on deficiency judgment............... 54,024 -- -- --
Gain (loss) on sale of assets................... -- -- (1,757) (501)
Income from REO................................. -- -- 7,966 --
Net realized gains on sale of
available-for-sale securities................ 933 -- 6,977 1,791
----------- ------------ ----------- -----------
Total noninterest income................. 132,870 79,404 161,437 111,081
---------- ---------- ---------- ----------
^ Noninterest expense:
Compensation and benefits....................... 258,952 260,249 513,966 482,335
Occupancy and equipment......................... 114,274 108,256 217,985 219,499
Federal insurance premiums
and assessments............................... 17,205 23,709 40,339 275,740
Other........................................... 187,219 174,116 333,646 309,964
---------- --------- ---------- ----------
Total noninterest expense................ 577,650 566,330 1,105,936 1,287,538
---------- --------- --------- ---------
Income (loss) before provision
for income taxes................................ 151,725 83,849 273,247 (42,079)
Provision for income taxes........................ 38,045 22,000 81,340 (21,960)
---------- ---------- ---------- ----------
Net income.............................. $ 113,680 $ 61,849 $ 191,907 $ (20,119)
========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements beginning on page F-5.
40
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management's discussion and analysis is intended to assist you in
understanding our financial condition and results of operations. The information
in this section should also be read with our Financial Statements and Notes to
the Financial Statements included elsewhere in this document.
General
The Company has recently been formed and, accordingly, has no results
of operations. The following discussion relates only to our financial condition
and results of operations. Please refer to our Pro Forma Data discussion on page
__ to see the potential effects of the offering on our financial statements.
Our results of operations depend primarily on net interest income,
which is determined by (i) the difference between rates of interest we earn on
our interest-earning assets and the rates we pay on interest-bearing liabilities
(interest rate spread), and (ii) the relative amounts of interest-earning assets
and interest-bearing liabilities. Our results of operations are also affected by
noninterest income, including, income from customer deposit account service
charges, gains and losses from the sale of investments and mortgage-backed
securities and noninterest expense, including, primarily, compensation and
employee benefits, federal deposit insurance premiums, office occupancy cost,
and data processing cost. Our results of operations are also affected
significantly by general and economic and competitive conditions, particularly
changes in market interest rates, government policies and actions of regulatory
authorities, all of which are beyond our control.
Market Risk Analysis
Qualitative Analysis. Our assets and liabilities may be analyzed by
examining the extent to which they are interest rate sensitive and by monitoring
the expected effects of interest rate changes on our net portfolio value.
An asset or liability is interest rate sensitive within a specific time
period if it will mature or reprice within that time period. If our assets
mature or reprice more quickly or to a greater extent than our liabilities, our
net portfolio value and net interest income would tend to increase during
periods of rising interest rates but decrease during periods of falling interest
rates. Conversely, if our assets mature or reprice more slowly or to a lesser
extent than our liabilities, our net portfolio value and net interest income
would tend to decrease during periods of rising interest rates but increase
during periods of falling interest rates. Our policy has been to address the
interest rate risk inherent in the historical savings institution business of
originating long-term loans funded by short-term deposits by maintaining
sufficient liquid assets for material and prolonged changes in interest rates
and by originating loans with shorter terms to maturity such as construction,
commercial and consumer loans. In addition, we have invested in adjustable-rate
mortgage-backed securities as an interest rate risk management strategy.
^ Quantitative Analysis. In order to encourage savings associations to
reduce their interest rate risk, the OTS adopted a rule incorporating an
interest rate risk ("IRR") component into the risk-based capital rules. The IRR
component is a dollar amount that will be deducted from total capital for the
purpose of calculating an institution's risk-based capital requirement and is
measured in terms of the sensitivity of its net portfolio value ("NPV") to
changes in interest rates. NPV is the difference between incoming and outgoing
discounted cash flows from assets, liabilities, and off-balance sheet contracts.
An institution's IRR is measured as the change to its NPV as a result of a
hypothetical 200 basis point ("bp") change in market interest rates. A resulting
change in NPV of more than 2% of the estimated present
41
<PAGE>
value of total assets ("PV") will require the institution to deduct from its
capital 50% of that excess change. The rules provide that the OTS will calculate
the IRR component quarterly for each institution. Based on our asset size and
risk-based capital, we have been informed by the OTS that we are exempt from
this rule. Nevertheless, the following table presents our NPV at March 31, 1998,
as calculated by the OTS, based on quarterly information we voluntarily provided
to the OTS.
<TABLE>
<CAPTION>
Changes Net Portfolio Value
in Market ------------------------------------------------------------
Interest Rates $ Amount $ Change % Change NPV Ratio(1)
-------------- --------------- -------------------- ------------------- -------------
(basis points) (Dollars in Thousands)
<S> <C> <C> <C> <C>
+400 886 - 2,158 - 70.8 2.40%
+300 1,438 - 1,607 - 52.8 3.82
+200 2,008 - 1,037 - 34.1 5.25
+100 2,573 - 471 - 15.5 6.61
0 3,045 0 0 7.71
-100 3,413 368 12.1 8.53
-200 3,567 522 17.1 8.86
-300 3,666 621 20.4 9.04
-400 3,988 943 31.0 9.72
</TABLE>
- ------------------
(1) Calculated as the estimated NPV divided by present value of total assets.
Computations of prospective effects of hypothetical interest rate
changes are based on numerous assumptions, including relative levels of market
interest rates, prepayments and deposit run-offs and should not be relied upon
as indicative of actual results. Certain shortcomings are inherent in such
computations. Although certain assets and liabilities may have similar
maturities or periods of repricing, they may react at different times and in
different degrees to changes in market rates of interest. The interest rates on
certain types of assets and liabilities may fluctuate in advance of changes in
market interest rates, while rates on other types of assets and liabilities may
lag behind changes in market interest rates. In the event of a change in
interest rates, prepayments and early withdrawal levels could deviate
significantly from those assumed in making the calculations set forth above.
Additionally, an increased credit risk may result as many borrowers may be
unable to service their debt in the event of an interest rate increase.
Our board of directors reviews our asset and liability policies on an
annual basis. The board of directors meets quarterly to review interest rate
risk and trends, as well as liquidity and capital ratios and requirements.
Management administers the policies and determinations of the board of directors
with respect to our asset and liability goals and strategies. We expect that our
asset and liability policies and strategies will continue as described so long
as competitive and regulatory conditions in the financial institution industry
and market interest rates continue as they have in recent years.
42
<PAGE>
Financial Condition
Total assets increased $1.07 million or 2.8% to $38.7 million at March
31, 1998 from $37.6 million at September 30, 1997. The increase was primarily
attributable to a $1.9 million increase in our loans receivable, net, and a $1.4
million increase in interest-bearing deposits with other banks, partially offset
by a decrease in securities held-to-maturity of $998,000 as well as a decrease
in mortgage-backed and related securities held-to-maturity of $476,000. Our
total liabilities increased $930,000 or 2.6%, to $36.5 million at March 31, 1998
from $35.5 million at September 30, 1997. The increase was primarily
attributable to a $891,000 increase in deposits. Deposits increased primarily
due to increased marketing efforts through greater advertising. Total assets
increased $3.3 million or 9.3% to $37.6 million at September 30, 1997, as
compared to $34.4 million at September 30, 1996. This increase was primarily due
to a $3.1 million or 13.5% increase in loans receivable, net, and a $1.2 million
increase in cash and due from banks, partially offset by a $1.6 million decrease
in securities held-to-maturity. The increase in loans receivable was due to
greater marketing and increased demand in our primary market area. The decrease
in securities held-to-maturity was a result of maturing instruments.
Total liabilities increased $3.0 million or 9.4% to $35.5 million at
September 30, 1997 as compared to $32.5 million at September 30, 1996. This
increase was due to an increase in deposits of $5.6 million or 19.0% at
September 30, 1997, partially offset by a $2.4 million decrease in FHLB
advances. We had no FHLB advances at September 30, 1997 as our borrowings were
repaid during 1997 using funds provided by the increase in deposits.
Retained earnings increased $137,000 to $2.2 million or 5.7% of total
assets at March 31, 1998, as compared to $2.1 million or 5.5% of total assets at
September 30, 1997 and $1.9 million or 5.5% of total assets at September 30,
1996. The increases in retained earnings are primarily attributable to net
income.
43
<PAGE>
Average Balance Sheet
The following table sets forth a summary of average balances of assets
and liabilities as well as average yield and rate information. Average balances
are based upon month-end balances, however, we do not believe the use of
month-end balances differs significantly from an average based upon daily
balances. There have been no tax equivalent adjustments made to yields.
<TABLE>
<CAPTION>
For the Six Months Ended (5)
---------------------------------------------------------------------------------
March 31, 1998 March 31, 1997
---------------------------------------- --------------------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------- -------- ------------ ------- -------- --------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans receivable(1)............. $27,392 $1,107 8.08% $23,935 $ 977 8.16%
Mortgage-backed securities...... 2,896 91 6.28 2,683 81 6.03
Investment securities(2)........ 3,442 96 5.50 5,197 152 5.85
Other interest-earning assets... 1,944 39 4.01 2,150 53 4.91
------ ------ ---- ------ ------ ----
Total interest-earning assets 35,674 1,333 7.47 33,965 1,263 7.43
---- ----
Noninterest-earning assets....... 2,154 -- 2,417 --
------ ------ ------ ------
Total assets................. $37,828 1,333 $36,382 1,263
====== ----- ====== -----
Interest-bearing liabilities:
NOW ^ accounts.................. $4,225 $ 49 2.32 $3,808 $ 44 2.31
Savings accounts................ 6,651 83 2.50 5,790 75 2.59
Money market accounts........... 2,357 30 2.55 2,292 25 2.18
Certificates of deposit......... 19,526 515 5.27 18,874 482 5.11
Other liabilities............... -- -- -- 2,187 62 5.67
---------- ------- ------ ------- ------ ----
Total interest-bearing liabilities 32,759 677 4.13 32,951 688 4.18
---- ----
Noninterest-bearing liabilities... 2,884 1,507
------ ------
Total liabilities............ 35,643 34,458
------ ------
Retained earnings................. 2,185 -- 1,924 --
------ ------- ------ -------
Total liabilities and
retained earnings.......... $37,828 $36,382
====== ======
Net interest income............... $ 656 $ 575
===== =====
Interest rate spread(3)........... 3.34% 3.25%
===== =====
Net yield on
interest-earning assets(4)...... 3.68% 3.39%
===== =====
Ratio of average interest-earning
assets to average interest-
bearing liabilities............. 108.90% 103.08%
====== ======
</TABLE>
<TABLE>
<CAPTION>
Year Ended September 30, At March 31,
-------------------------------------------------------- ------------------
1997 1996 1998
----------------------------- ------------------------- ------------------
Average Average Average
Average Yield/ Average Yield/ Actual Yield/
Balance Interest Cost Balance Interest Cost Balance Cost
------- -------- ---------- ------- -------- -------- ------- ----------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans receivable(1)............. $24,832 $2,034 8.19% $21,636 $1,778 8.22% $28,280 7.81%
Mortgage-backed securities...... 2,962 177 5.97 2,940 174 5.92 2,540 6.18
Investment securities(2)........ 4,645 318 6.85 5,531 364 6.57 2,886 5.64
Other interest-earning assets... 2,559 106 4.13 1,537 53 3.45 2,712 5.25
------ ------ ---- ------ ------ ---- ----- ----
Total interest-earning assets 34,998 2,635 7.53 31,644 2,369 7.49 36,418 7.33
---- ---- ----
Noninterest-earning assets....... 2,333 -- 2,234 -- 2,267
------ ------ ------- ------ ------
Total assets................. $37,331 2,635 $33,878 2,369 $38,685
====== ----- ====== ----- ======
Interest-bearing liabilities:
NOW ^ accounts.................. $ 3,830 86 2.24 $3,708 74 1.99 $ 4,516 1.75
Savings accounts................ 6,187 152 2.46 5,568 167 3.01 7,007 2.50
Money market accounts........... 2,283 60 2.62 2,746 59 2.15 2,540 2.62
Certificates of deposit......... 19,530 1,031 5.28 18,019 887 4.92 19,475 5.40
Other liabilities............... 1,302 80 6.14 738 35 4.78 -- --
------ ------ ---- ------ ----- ---- ------ -----
Total interest-bearing liabilit 33,132 1,409 4.25 30,779 1,222 3.97 33,538 4.09
---- ---- ----
Noninterest-bearing liabilities... 2,225 1,134 2,922
------ ------ ------
Total liabilities............ 35,357 31,913 36,460
------ ------ ------
Retained earnings................. 1,974 -- 1,965 -- 2,225
------ ------ ------ ------ ------
Total liabilities and
retained earnings.......... $37,331 $1,409 $33,878 $38,685
====== ===== ====== ======
Net interest income............... $1,226 $1,147
===== =====
Interest rate spread(3)........... 3.28% 3.52% 3.24%
==== ==== ====
Net yield on
interest-earning assets(4)...... 3.50% 3.62% 3.56%
==== ==== ====
Ratio of average interest-earning
assets to average interest-
bearing liabilities............. 105.63% 102.81% 108.59%
====== ====== ======
</TABLE>
- --------------
(1) Average balances include non-accrual loans.
(2) Includes interest-bearing deposits in other financial institutions.
(3) Interest ^ rate spread represents the difference between the average yield
on interest-earning assets and the average cost of interest-bearing
liabilities.
(4) Net yield on interest-earning assets represents net interest income as a
percentage of average interest-earning assets.
(5) Annualized (where appropriate) for purposes of comparability with year-end
data.
44
<PAGE>
The table below sets forth certain information regarding changes in our
interest income and interest expense for the periods indicated. For each
category of interest-earning assets and interest-bearing liabilities,
information is provided on changes attributable to (i) changes in volume
(changes in average volume multiplied by old rate); (ii) changes in rates
(changes in rate multiplied by old average volume); (iii) changes in rate-volume
(changes in rate multiplied by the change in average volume).
<TABLE>
<CAPTION>
Six Months Ended March 31, Year Ended September 30,
1998 vs. 1997 1997 vs. 1996
---------------------------------- --------------------------------
Increase (Decrease) Increase (Decrease)
Due to Due to
---------------------------------- --------------------------------
Rate/ Rate/
Volume Rate Volume Net Volume Rate Volume Net
------- ------ ------- ------ ------ ------ ------- -----
Interest income: ............. (In thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Loans receivable ............ $ 141 $ (10) $ (1) $ 130 $ 263 $ (6) $ (1) $ 256
Mortgage-backed securities .. 7 3 -- 10 2 1 -- 3
Investment securities ....... (51) (7) 2 (56) (59) 16 (3 (46)
Other interest-earning assets (5) (10) 1 (14) 36 10 7 (53)
----- ----- ----- ----- ----- ----- ----- -----
Total interest income ...... $ 92 $ (24) $ 2 $ 70 $ 242 $ 21 $ 3 $ 266
===== ===== ===== ===== ===== ===== ===== =====
Interest expense:
NOW accounts ................ $ 5 $-- $-- $ 5 $ 3 $ 9 $-- $ 12
Savings account ............. 11 (3) -- 8 19 (31) (3) (15)
Money market accounts ....... 1 4 -- 5 (10) 13 (2) 1
Certificates of deposit ..... 17 15 1 33 74 65 5 144
Other liabilities ........... -- -- (62) (62) 27 10 8 $ 45
----- ----- ----- ----- ----- ----- ----- -----
Total interest expense
$ 34 $ 16 $ (61) (11) 113 $ 66 $ 8 $ 187
===== ===== ===== ===== ===== ===== ===== =====
Change in net interest income $ 58 $ (40) $ 63 $ 81 $ 129 $ (45) $ (5) $ 79
===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
45
<PAGE>
Results of Operations for the Six Months Ended March 31, 1998 and 1997
Net Income. Our net income increased $52,000 for the six months ended
March 31, 1998, to $114,000 from $62,000 for the six months ended March 31,
1997. This increase was primarily attributable to an $81,000 increase in our net
interest income^ and a $53,000 increase in our noninterest income ^, partially
offset by a $55,000 increase in our provision for loan losses, an increase in
noninterest expense of $11,000 and an increase in income taxes of $16,000.
Net Interest Income. Net interest income is the most significant
component of our income from operations. Net interest income is the difference
between interest we receive on our interest-earning assets, primarily loans,
investment and mortgage-backed securities and interest we pay on our
interest-bearing liabilities, primarily deposits. Net interest income depends on
the volume of and rates earned on interest-earning assets and the volume of and
rates paid on interest-bearing liabilities.
Our net interest income increased $81,000, or 15.15%, to $656,000 for
the six months ended March 31, 1998, as compared to the same period in 1997. The
increase was primarily due to the growth in our average interest-earning assets
to $35.7 million in 1998 from $34.0 million in 1997 and growth in our interest
rate spread to 3.34% in 1998 compared to 3.25% in 1997.
The increase in our average interest-earning assets of $1.7 million
primarily reflects increases of $3.5 million in our balance of average loans,
partially offset by a decrease of $2.0 million in investment securities and
other assets. The increase in our interest-earning assets was funded by the
increase in deposits.
Our interest rate spread and net yield on interest-earning assets
increased for the six months ended March 31, 1998 compared to the same period in
1997 which was ^ due to an increase in average yield on our interest-earning
assets of 7.47% in 1998 compared to 7.43% in 1997, ^ along with a decrease in
our average yield on interest-bearing deposits of 4.13% in 1998 compared to
4.18% in 1997. The increase in our average yield on interest-earning assets was
due to increased lending activity.
The decrease in our average interest-bearing liabilities of $192,000
reflects increases of $417,000 in our average interest-bearing ^ NOW accounts
and $1.6 million in average savings and certificates of deposit and a decrease
of $2.2 million in average FHLB borrowings. The decrease in our average FHLB
borrowings is primarily due to the increase in deposits.
Provision for Loan Losses. Our provision for loan losses was $59,000
for the six months ended March 31, 1998, as compared to $4,000 for the same
period in 1997. The increase in the provision ^ was the result of management's ^
determination that a higher allowance for loan losses was necessary to protect
our ability to absorb losses. This, in turn, was based on our decision to
diversify our loan portfolio. Prior to this decision, as of September 30, 1997,
the Bank had commercial lines of credit of $17,550. This balance increased to
$176,147 at March 31, 1998, a 903.69% increase. These lines of credit are
usually collateralized by illiquid assets and, therefore, they have greater
credit risk. For this reason, we have allocated $40,000 of the provision to the
allowance for these loans. Previously, we had no allowance for loss allocated to
this category of loans. We anticipate increasing our loan loss allowance as this
category of loans increases.
^Additionally, consumer loans increased $40,000 during the year ended
September 30, 1997, and $40,000 during the six months ended March 31, 1998. Due
to our increased emphasis on consumer loans which have greater credit risk than
residential mortgages, we have increased our provision for losses relating to
consumer loans by $6,000. Both our commercial and residential real estate
portfolios also
46
<PAGE>
increased significantly during the period ended March 31, 1998, as compared to
the fiscal year ended September 30, 1997. We accordingly increased our provision
for loans losses attributable to each of these portfolios by $14,000.
Management believes the allowance for loan losses is at a level that is
adequate to provide for estimated losses. However, there can be no assurance
that further additions will not be made to the allowance and that such losses
will not exceed the estimated amount. See "Business of Peoples Savings Bank --
Nonperforming and Problem Assets -- ^ Allowances for Loan Losses."
Noninterest Income. Our noninterest income increased $53,000 or 67.3%
from $79,000 for the six months ended March 31, 1997 to $133,000 for the same
period in 1998. This increase in our noninterest income was due to the
collection of a $54,000 deficiency judgment, partially offset by a decrease in
fees and other service charges of $1,000.
Noninterest Expense. Our noninterest expense increased $11,000 or 2.0%
from $566,000 for the six months ended March 31, 1997 to $578,000 for the same
period in 1998. The increase in our noninterest expense was due to a $6,000
increase in our occupancy and equipment expense and a $13,000 increase in other
noninterest expense, partially offset by decreases of $1,000 in our compensation
and benefits and $7,000 in our federal insurance premiums. The decrease in our
federal deposit insurance premiums was due to a reduction in the rate charged
for deposit insurance. The category of non-interest expense described as "Other"
is comprised of expenses related to advertising, fees charged by banks, loan
processing fees, NOW expenses, costs related to supplies and various
professional fees. The highest of these expenses was $34,000 for bank charges.
As a result of the conversion, our noninterest expense may increase due
to costs associated with our employee stock ownership plan, restricted stock
plan, if implemented, and the costs of being a public company. However, we
expect any such increase to be offset by increased interest income resulting
from investment of the proceeds from the conversion.
Income Tax Expense. Our income tax expense increased $16,000 from
$22,000 in 1997 to $38,000 in 1998. This increase in income tax expense is due
to the increase in our pretax income of $68,000 from $84,000 in 1997 to $152,000
in 1998. Our effective tax rate was 25.07% and 26.24% for the six months ended
March 31, 1998 and 1997, respectively.
Results of Operations for the Years Ended September 30, 1997 and 1996
Net Income. Our net income increased $212,000 for the year ended
September 30, 1997, to $192,000 from a loss of $20,000 for the year ended
September 30, 1996. This increase was primarily attributable to a $79,000
increase in our net interest income, a $50,000 increase in our noninterest
income and a $182,000 decrease in our noninterest expense, partially offset by a
$103,000 increase in our income tax expense due to the increase in income before
taxes. In 1996, we were required to pay a one-time assessment to the FDIC in the
amount of $192,000 to recapitalize the SAIF.
Net Interest Income. Our net interest income increased $79,000, or
6.9%, to $1.2 million for the year ended September 30, 1997, as compared to the
same period in 1996. The increase was primarily due to the growth in our average
interest-earning assets to $35.0 million in 1997 from $31.6 million in 1996,
partially offset by a decrease in our interest rate spread to 3.28% in 1997
compared to 3.52% in 1996. The growth in interest-earning assets resulted from
^increased ^originations of loans.
47
<PAGE>
The increase in our average interest-earning assets of $3.4 million
reflects increases of $3.2 million in our ^ average loans balance and $1.0
million in our other interest-earning assets, partially offset by a decrease of
$886,000 in our investment securities. The increase in our interest-earning
assets was funded by the increase of $2.4 million in average interest-bearing
liabilities.
Our interest rate spread and net yield on interest-earning assets
decreased for the year ended September 30, 1997 compared to the same period in
1996 primarily due to an increase in our average cost on interest-bearing
liabilities to 4.25% in 1997 compared to 3.97% in 1996. The increase in our
average cost on interest-bearing liabilities was due to an increase in
borrowings of $564,000 and an increase in our average ^ rate paid on
interest-bearing liabilities of 28 basis points.
The increase in our average interest-bearing liabilities of $2.4
million reflects increases of $1.5 million in our average certificates of
deposit, $619,000 in average savings accounts and $122,000 in average NOW
accounts.
Provision for Loan Losses. Our provision for loan losses was $8,000 in
1997 as compared to $13,000 in 1996. The decrease in the provision in 1997 was
the result of management's review of the adequacy of the allowance for loan
losses.
Noninterest Income. Our noninterest income increased $50,000 or 45.3%
from $111,000 in 1996 to $161,000 in 1997. This increase in our noninterest
income was due to increases of $38,000 in our deposit account fees and service
charges, $8,000 in income from real estate owned and $5,000 in increased gain on
sales of available-for-sale securities, partially offset by a $1,000 increase in
our loss on sale of assets. Deposit account fees increased during 1997 due to a
higher number of accounts.
Noninterest Expense. Our noninterest expense decreased $182,000 or
14.1% from $1.3 million in 1996 to $1.1 million in 1997. The decrease in our
noninterest expense was due to a $235,000 decrease in our federal deposit
insurance premiums and assessments, offset by increases of $32,000 in our
compensation and benefits and $24,000 in our other noninterest expense accounts
which was partially attributable to increases in the processing costs related to
the growth in the number of transaction accounts. The decrease in our federal
deposit insurance premiums was due to a $192,000 one-time special assessment
levied in 1996 to recapitalize the SAIF, which did not recur in 1997. Following
the one-time special assessment, the FDIC insurance premium rates decreased from
0.230% to 0.063% per $100 in SAIF deposits, resulting in lower noninterest
expense. The category of non-interest expense described as "Other" is comprised
of expenses related to advertising, fees charged by banks, loan processing fees,
NOW expenses, costs related to supplies and various professional fees. The
highest of these expenses was $56,000 for bank charges.
Income Tax Expense. Our income tax expense increased $103,000 from a
credit of $22,000 in 1996 to $81,000 in 1997. This increase in income tax
expense is due to the increase in our pretax income from a loss before taxes of
$42,000 in 1996 to income before taxes of $273,000 in 1997. Our effective tax
rate was 29.8% for the year ended September 30, 1997.
Liquidity and Capital Resources
We are required to maintain minimum levels of liquid assets as defined
by OTS regulations. This requirement, which varies from time to time depending
upon economic conditions and deposit flows, is based upon a percentage of our
deposits and short-term borrowings. The required ratio currently is 4.0% and our
regulatory liquidity ratio average was 11.14%, 11.63% and 12.86% at March 31,
1998, September 30, 1997 and 1996, respectively.
48
<PAGE>
Our primary sources of funds are deposits, repayment of loans and
mortgage-backed securities, maturities of investment securities and
interest-bearing deposits with other banks, advances from the FHLB of New York,
and funds provided from operations. While scheduled repayments of loans and
mortgage-backed securities and maturities of investment securities are
predictable sources of funds, deposit flows, and loan prepayments are greatly
influenced by the general level of interest rates, economic conditions and
competition. We use our liquidity resources principally to fund existing and
future loan commitments, maturing certificates of deposit and demand deposit
withdrawals, to invest in other interest-earning assets, to maintain liquidity,
and meet operating expenses.
Net cash provided by our operating activities (the cash effects of
transactions that enter into our determination of net income e.g., non-cash
items, amortization and depreciation, provision for loan losses) for the six
months ended March 31, 1998 was $131,000, an increase of $206,000, as compared
to the same period in 1997. The increase in 1998 was primarily due to a $52,000
increase in our net income, an increase in our income taxes payable of $36,000,
an increase in our prepaid expenses, and cash used to reduce accrued
liabilities. Net cash provided by our operating activities year for the ended
September 30, 1997 was $169,000 as compared to $42,000 for the year ended
September 30, 1996. The increase in 1997 was primarily due to a $212,000
increase in our net income, reduced by payments on other liabilities and taxes.
Net cash used by our investing activities (i.e., cash receipts,
primarily from our investment securities and mortgage-backed securities
portfolios and our loan portfolio) for the six months ended March 31, 1998,
totalled $1.8 million, a decrease of $2.3 million. This decrease was primarily
attributable to loan originations and investments in interest-bearing deposits.
For the year ended September 30, 1997 net cash used by investing activities
totalled $2.2 million, a decrease of $400,000 from September 30, 1996. The
decrease was primarily attributable to funding net loan growth of $3.1 million
in 1997 as compared to $2.6 million in 1996. The decrease was also affected by
paydowns and maturities of investment and mortgage-backed securities of $1.2
million in 1997 as compared to $4.5 million in 1996.
Net cash used in our financing activities (i.e., cash receipts
primarily from net increases in deposits and net decreases in FHLB advances) for
the six months ended March 31, 1998, totalled $900,000, a decrease of $3.5
million as compared to the six months ended March 31, 1997. For the year ended
September 30, 1997 net cash used in financing activities totalled $3.2 million,
an increase of $2.5 million from September 30, 1996. The increase was primarily
attributable to repayment of FHLB advances.
Approximately $11.3 million of our time deposits mature within the next
12 months. We expect such deposits to be renewed at market rates. In addition to
this source of continuing funding, we have a $9.4 million line of credit
available through the FHLB of New York.
Year 2000 Issues
The approaching millennium is causing organizations of all types to
review their computer systems for the ability to properly accommodate the year
2000. When computer systems were first developed, two digits were used to
designate the year in date calculations and "19" was assumed for the century. As
a result, there is significant concern about the integrity of date sensitive
calculations when the calendar rolls over to January 1, 2000. An older system
could interpret 01/01/00 as January 1, 1900 potentially causing major problems
calculating interest, payment, delinquency or maturity dates.
49
<PAGE>
Our internal Year 2000 Working Committee, comprised of senior
management was formed to address the potential risk that Year 2000 poses for us.
This committee reports to the board of directors. In June 1997, the committee
compiled a written Year 2000 Action Plan to promote awareness of pertinent
issues and to provide for evaluation and testing of our electronic systems,
programs and processes. This report was submitted to the OTS for review in
August 1997 and was deemed acceptable by the OTS in October 1997.
Accurate data processing is essential to our operations and a lack of
accurate processing by our vendor or by us could have a significant adverse
impact on our financial condition and results of operations. We have been
assured by our data processing service bureau that their computer services will
function properly on and after January 1, 2000.^ Additional testing of the
system is scheduled for August 1998. If by the end of this year ^ our primary
data processing service bureau ^ has encountered unforseen problems and, as a
result, will not be year 2000 compliant within the necessary timeframe, we will
seek a secondary data processing service provider to complete the task. If we
are unable to do this, we will identify those steps necessary to minimize the
negative impact this could have on us. ^ We are also in the process of upgrading
our teller equipment to be year 2000 compliant and we expect this upgrade to
be completed by the fourth calendar quarter of 1998. We estimate that the cost
of our year 2000 upgrades will not have a material adverse effect on our
financial condition or results of operations.
Recent Accounting Pronouncements
FASB Statement on Reporting Comprehensive Income. In June 1997, the
Financial Accounting Standards Board ("FASB") issued Statement of Financial
Accounting Standards ("SFAS") No. 130. SFAS No. 130 will require us to classify
items of other comprehensive income by their nature in the financial statements
and display the accumulated balance of other comprehensive income separately
from retained earnings and additional paid-in capital in the equity section of
the statement of equity. SFAS No. 130 is effective for fiscal years beginning
after December 15, 1997. The adoption of this standard is not expected to have a
material impact on our consolidated financial statements.
FASB Statement on Earnings Per Share. In March 1997, FASB issued SFAS
No. 128. The Statement establishes standards for computing and presenting
earnings per share and applies to entities with publicly held common stock or
potential common stock. This Statement supersedes the standards for computing
earnings per share previously found in Accounting Principles Board ("APB")
Opinion No. 15, Earnings per Share ("EPS"), and makes them comparable to
international EPS standards. It replaces the presentation of primary EPS with a
presentation of basic EPS. It also requires dual presentation of basic and
diluted EPS on the face of the income statement for all entities with complex
capital structures and requires a reconciliation of the numerator and the
denominator of the basic EPS computation to the numerator and denominator of the
diluted EPS computation. Basic EPS excludes dilution and is computed by dividing
income available to common stockholders by the weighted-average number of common
shares outstanding for the period. Diluted EPS reflects the potential dilution
that could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in the earnings of the entity. Diluted EPS is computed
similarly to fully diluted EPS pursuant to APB Opinion No. 15. This statement
supersedes Opinion No. 15 and AICPA Accounting Interpretation 1-102 of Opinion
15. This statement is effective for financial statements issued for periods
ending after December 15, 1997, including interim periods. We will adopt SFAS
No. 128 for all our financial statements prepared after the conversion.
FASB Statement on Disclosure of Information about Capital Structure. In
February 1997, the FASB issued SFAS No. 129. The Statement incorporates the
disclosure requirements of APB Opinion No. 15, Earnings per Share, and makes
them applicable to all public and nonpublic entities that have
50
<PAGE>
issued securities addressed by the Statement. APB Opinion No. 15 requires
disclosure of descriptive information about securities that is not necessarily
related to the computation of earnings per share. This statement continues the
previous requirements to disclose certain information about an entity's capital
structure found in APB Opinions No. 10, Omnibus Opinion- 1966, and No. 15,
Earnings per Share, and FASB Statement No. 47, Disclosure of Long-Term
Obligations, for entities that were subject to the requirements of those
standards. This Statement eliminates the exemption of nonpublic entities from
certain disclosure requirements of Opinion 15 as provided by FASB Statement No.
21, Suspension of the Reporting of Earnings per Share and Segment Information by
Nonpublic Enterprises. It supersedes specific disclosure requirements of
Opinions 10 and 15 and Statement 47 and consolidates them in this Statement for
ease of retrieval and for greater visibility to nonpublic entities. The
Statement is effective for financial statements for periods ending after
December 15, 1997. We will adopt SFAS No. 129 for all our financial statements
prepared after the conversion.
FASB Statement on Disclosures about Segments of an Enterprise and
Related Information. In June 1997, the FASB issued SFAS No. 131. SFAS No. 131
establishes standards for the way public enterprises are to report information
about operating segments in annual financial statements and requires those
enterprises to report selected information about operating segments in interim
financial reports. SFAS No. 131 is effective for financial statements for
periods beginning after December 15, 1997. The adoption of this standard is not
expected to have a material impact on our consolidated financial statements.
FASB Statement on Employers' Disclosures about Pensions and Other
Postretirement Benefits. In February 1998, the FASB issued SFAS No. 132. SFAS
No. 132 revises employers' disclosures about pension and other postretirement
benefit plans. SFAS No. 132 does not change the measurement or recognition of
those plans and is effective for fiscal years beginning after December 15, 1997.
The adoption of this standard is not expected to have a material impact on our
consolidated financial statements.
FASB Statement on Accounting for Derivative Instruments and Hedging
Activities. In June 1998, the FASB issued SFAS No. 133. SFAS No. 133 requires an
entity to recognize all derivatives as either an asset or a liability in the
statement of financial position and to measure these instruments at fair value.
SFAS No. 133 is effective for fiscal years beginning after June 15, 1999. The
adoption of this standard is not expected to have a material impact on our
consolidated financial statements.
BUSINESS OF FARNSWORTH BANCORP, INC.
The Company is not an operating company and has not engaged in any
significant business to date. It was formed in May 1998 as a New
Jersey-chartered corporation to be the holding company for Peoples Savings Bank.
The holding company structure will facilitate: (i) diversification into
non-banking activities, (ii) acquisitions of other financial institutions, such
as savings institutions, (iii) expansion within existing and into new market
areas, and (iv) stock repurchases without adverse tax consequences. There are,
however, no present plans regarding diversification, acquisitions, expansion or
repurchases.
Since the Company will own only one savings association, it generally
will not be restricted in the types of business activities in which it may
engage, provided that we retain a specified amount of our assets in
housing-related investments. The Company initially will not conduct any active
business and does not intend to employ any persons other than officers but will
utilize our support staff from time to time.
51
<PAGE>
The office of the Company is located at 789 Farnsworth Avenue,
Bordentown, New Jersey. The telephone number is (609) 298-0723.
BUSINESS OF PEOPLES SAVINGS BANK
Peoples Savings Bank was originally chartered in 1880 as The Bordentown
Building and Loan Association. In 1965 we merged with Peoples Building and Loan
Association and became Bordentown Peoples Savings and Loan Association. We
acquired Florence Township Savings and Loan Association and Beverly Building and
Loan Association in 1985 and 1989, respectively. The Beverly branch was
subsequently closed in 1994. In 1995 we changed our name to Peoples Savings
Bank, SLA. In 1996 we converted from a state-chartered mutual savings bank to a
federally-chartered mutual savings bank, and concurrently changed our name to
Peoples Savings Bank.
We are a community and customer-oriented federal mutual savings bank
with two branch offices located in Burlington County. We provide financial
services to individuals, families and small businesses. Historically, we have
emphasized residential mortgage lending, primarily originating one- to
four-family mortgage loans. At March 31, 1998, we had total assets of $38.7
million, deposits of $36.1 million, and retained earnings of $2.3 million.
The principal sources of funds for our activities are deposits,
payments on loans and borrowings from the FHLB of New York. Funds are used
principally for the origination of fixed-rate mortgage loans, but also
occasionally for the origination of adjustable-rate mortgage loans, secured by
first mortgages on one- to four-family residences located in our local
communities, and for the purchase of investment securities. One- to four-family
mortgage loans totalled $21.6 million, or 75% of our total loans receivable
portfolio at March 31, 1998. Our principal sources of revenue are interest
received on loans and on investments and our principal expense is interest paid
on deposits and borrowings.
Market Area
Our main office is located in Bordentown and our branch office is
located in Florence, approximately seven miles from the main office. Both
offices are in northern Burlington County, our primary market area. Both
Bordentown and Florence are densely populated, urban areas. Burlington County
has a stable economy with a low unemployment rate, and a diversified economic
base of light industry and retail businesses. ^ Median household incomes for
Bordentown and Florence are substantially higher than those in the rest of the
state. Unlike Florence, the population in Bordentown is projected to increase,
although not by as much as is projected for the ^State of New Jersey.
Lending Activities
Most of our loans are mortgage loans which are secured by one- to
four-family residences. We also make construction loans on one- to four-family
and commercial properties, commercial real estate and business loans, as well as
consumer loans. Almost all of the loans we originate have rates of interest
which are fixed ("fixed-rate").
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<PAGE>
The following table sets forth information concerning the types of
loans held by us.
<TABLE>
<CAPTION>
At March 31, At September 30,
----------------------------- -------------------------------------------------------------
1998 1997 1996
----------------------------- ----------------------------- -----------------------------
$ % $ % $ %
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Type of Loans:
Residential ....................... $21,579 74.8% $20,220 73.5% $19,107 77.6%
Construction....................... 2,332 8.1 2,842 10.3 1,840 7.5
Commercial real estate............. 1,234 4.3 1,144 4.2 541 2.2
Commercial business................ 176 ^ 0.6 18 ^ 0.1 54 0.2
Consumer loans:
Home equity.................... 3,223 11.2 3,004 10.9 2,870 11.7
Savings account loans.......... 231 0.8 246 0.9 197 0.8
Automobile loans............... 34 0.1 -- -- -- --
Other.......................... 52 0.1 50 0.1 -- --
------ ------ ----- ------ ------ -------
28,861 100.0% 27,524 100.0% 24,609 100.0%
------- ===== ------ ===== ------ =====
Less:
Loans in process................. 293 895 1,137
Deferred loan origination
fees and costs................. 163 154 153
Allowance for loan losses........ 125 66 58
-------- -------- --------
Total loans, net.................. $28,280 $26,409 $23,261
====== ====== ======
</TABLE>
The following table sets forth the estimated maturity of our loan
portfolio at March 31, 1998. The table does not include the effects of possible
prepayments or scheduled principal repayments. For the six months ended March
31, 1998 and the year ended September 30, 1997, prepayments and scheduled
principal repayments on loans totalled $2.80 million and $1.19 million,
respectively. All mortgage loans are shown as maturing based on the date of the
last payment required by the loan agreement.
<TABLE>
<CAPTION>
1-4 Family Commercial Commercial
Mortgage Construction Real Estate Business Consumer Total
Loans Loans Loans Loans Loans Loans
----- ----- ----- ----- ----- -----
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
Amounts due:
Within 1 year................ $ 2,022 $2,332 $ 251 $161 $ 240 $ 5,006
Over 1 to 3 years............ 491 -- -- -- 344 835
Over 3 to 5 years............ 1,472 -- -- 15 521 2,008
Over 5 to 10 years........... 1,333 -- 507 -- 731 2,571
Over 10 to 20 years.......... 5,730 -- 80 -- 1,704 7,514
Over 20 years................ 10,531 -- 396 -- -- 10,927
------ ------- ------ ---- ------- ------
Total amount due........... 21,579 2,332 1,234 176 3,540 28,861
^ ------ ------- ------ ---- ------- ------
Less:
Allowance for loan losses.... 119 -- -- 2 4 125
Loans in process............. -- 293 -- -- -- 293
Deferred loan fees........... 163 -- -- -- -- 163
------- ------- ------- ---- ------- -------
Loans receivable, net $21,297 $2,039 $1,234 $174 $3,536 $28,280
====== ===== ===== === ===== ======
</TABLE>
53
<PAGE>
The following table sets forth the dollar amount of all loans due after
March 31, 1999, which have pre-determined interest rates and which have floating
or adjustable interest rates.
Floating or
Fixed-rates Adjustable-rates Total
----------- ---------------- -----
(In thousands)
Residential......................... $19,370 $187 $19,557
Construction........................ -- -- --
Commercial real estate.............. 983 -- 983
Commercial business................. 15 -- 15
Construction........................ -- -- --
Consumer............................ 2,976 324 3,300
------ --- ------
Total............................. $23,344 $511 $23,855
====== === ======
The following information contains information concerning changes in
the amount of loans held by us.
For the Six
Months Ended For the Years Ended
March 31, September 30,
------------ ------------------------
1998 1997 1996
------- --------- ---------
(In thousands)
Total gross loans receivable
at beginning of period............ $27,524 $24,609 $20,626
Loans originated:
Residential....................... 2,633 3,708 4,326
Construction...................... 412 2,315 1,876
Commercial real estate............ 55 656 --
Commercial business............... 165 20 --
Consumer.......................... 459 1,905 1,217
Total loans originated.......... 3,724 8,604 7,419
Loan principal repayments........... 2,387 5,689 3,428
Loans charged off................... -- -- 8
Net loan activity................... 1,337 2,915 3,983
------ ------ ------
Total gross loans receivable
at end of period.............. $28,861 $27,524 $24,609
====== ====== ======
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<PAGE>
Mortgage Loans:
One- to Four-Family Residential Loans. Our primary lending activity
consists of originating one- to four-family fixed-rate residential mortgage
loans which are owner-occupied and secured by property located in our market
area. We generally originate fixed-rate loans with terms, conditions and
documentation which would permit us to either sell the loans to Federal National
Mortgage Association ("FNMA" or Federal Home Loan Mortgage Corporation
("FHLMC"), in the secondary market or retain them in our portfolio, depending on
the yield on the loan and on our asset/liability management objectives. While we
have in the past originated adjustable-rate mortgage ("ARM") loans, this has not
been a significant aspect of our business. At March 31, 1998, we had only one
ARM loan.
Our fixed-rate loans generally have terms from 10 to 30 years with
principal and interest payments calculated using up to a 30-year amortization
period. Some of these fixed-rate loans are balloon loans with terms of 5 or 7
years, with principal and interest payments again calculated using up to a 30-
year amortization period. The maximum loan-to-value ratio on residential
mortgage loans is 95%. Loans originated with a loan-to-value ratio in excess of
80% require private mortgage insurance.
Our mortgage loans generally include due-on-sale clauses. This gives us
the right to deem the loan immediately due and payable in the event the borrower
transfers ownership of the property securing the mortgage loan without our
consent.
Commercial Real Estate Loans. Our commercial real estate loans are
secured by office buildings, retail establishments and other commercial
properties. These loans generally do not exceed $500,000, nor do they have terms
greater than 15 years. If a borrower should require a longer amortization
period, the loan will be an adjustable or balloon mortgage, adjusting or
maturing in five years.
Commercial real estate lending entails significant additional risks
compared to residential property lending. These loans typically involve large
loan balances to single borrowers or groups of related borrowers. The repayment
of these loans typically is dependent on the successful operation of the real
estate project securing the loan. For commercial real estate these risks can be
significantly affected by supply and demand conditions in the market for office
retail space and may also be subject to adverse conditions in the economy. To
minimize these risks, we generally limit this type of lending to our market area
and to borrowers who are otherwise well known to us and generally limit the loan
to value ratio to 75%.
Construction Loans:
We make residential construction loans/permanent loans on one- to
four-family residential property to the individuals who will be the owners and
occupants upon completion of construction. We also make commercial construction
loans to local business. Our three current projects are a motel conversion loan
(in the amount of $500,000), a shopping center (in the amount $350,000) and a
medical facility (in the amount of $504,000).
Interest payments only are required during construction and these are
to be paid from the borrower's own funds. These loans are made at 1% to 2% above
prime and have terms of up to 12 months. The maximum loan-to-value ratio is 75%
of the appraised value of the completed project. Upon completion of construction
the loan converts to a permanent loan and regular principal and interest
payments commence. We do not finance any speculative projects.
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<PAGE>
Construction lending is generally considered to involve a higher degree
of credit risk than long-term financing of residential properties. Our risk of
loss on a construction loan is dependent largely upon the accuracy of the
initial estimate of the property's value at completion of construction and the
estimated cost of construction. If the estimate of construction cost and the
marketability of the property upon completion of the project prove to be
inaccurate, we may be compelled to advance additional funds to complete the
construction. Furthermore, if the final value of the completed property is less
than the estimated amount, the value of the property might not be sufficient to
assure the repayment of the loan.
Commercial Business Loans:
Our commercial loans generally constitute lines of credit to local
businesses. These loans are primarily secured by real estate and generally do
not have terms greater than one year. We offer commercial business loans to
benefit from the higher fees and interest rates and the shorter terms to
maturity.
Unlike residential mortgage loans, which generally are made on the
basis of the borrower's ability to make repayment from his or her employment and
other income and which are secured by real property whose value tends to be more
easily ascertainable, commercial business loans typically are made on the basis
of the borrower's ability to make repayment from the cash flow of the borrower's
business. As a result, the availability of funds for the repayment of commercial
business loans may be substantially dependent on the success of the business
itself and the general economic environment. ^Commercial loans, therefore, have
greater credit risk than residential mortgage loans.
We are also a Small Business Administration ("SBA") authorized lender.
A variety of types of small business administration loans are available.
Currently there are no SBA loans in the portfolio.
Consumer Loans:
We offer non-collateralized personal loans in the amounts of up to
$5,000 in order to provide a wider range of financial services to our customers
and because these loans provide higher interest rates and shorter terms (12 to
36 months) than many of our other loans. Consumer loans totalled $3.5 million or
12.27% of our total loans at March 31, 1998. We also offer loans with savings
pledged as additional security. Our consumer loans consist of home equity,
savings account, automobile and personal loans.
The home equity loans we originate are secured by one- to four-family
residences. These loans have terms of three to 15 years, generally will not
exceed $100,000 and have loan-to-value ratios of 80% or less. Home equity lines
of credit have interest rates of prime plus 1.5% and are subject to a 75%
loan-to-value ratio, which includes a first mortgage balance.
Consumer loans may entail greater risk than residential mortgage loans,
particularly in the case of consumer loans that are unsecured or secured by
assets that depreciate rapidly. Repossessed collateral for a defaulted consumer
loan may not be sufficient for repayment of the outstanding loan, and the
remaining deficiency may not be collectible.
Loan Approval Authority and Underwriting. Our loan committee, which is
comprised of President Pelehaty, Vice President Alessi, our Senior Loan Officer
and our Loan Servicing Manager, approves one- to four-family mortgage loans up
to the conforming loan limit of $227,150, and all other loans up to $50,000.
Loan requests above this amount must be approved by the full board of directors,
which meets twice monthly, or by the Executive Committee composed of four
non-employee directors and President Pelehaty.
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<PAGE>
Upon receipt of a completed loan application from a prospective
borrower, a credit report is ordered. Income and certain other information is
verified. If necessary, additional financial information may be requested. If
applicable, an appraisal or other estimate of value of the real estate intended
to be used as security for the proposed loan is obtained. Appraisals are
processed by independent fee appraisers. Private mortgage insurance will also be
required in certain instances.
Construction/permanent loans are made on individual properties. Funds
advanced during the construction phase are held in a loans-in-process account
and disbursed at various stages of completion, following physical inspection of
the construction by a loan officer or appraiser.
Either title insurance or a title opinion is generally required on all
real estate loans. Borrowers also must obtain fire and casualty insurance. Flood
insurance is also required on loans secured by property which is located in a
flood zone.
Loan Commitments. Written commitments are issued to prospective
borrowers within 45 days of the loan application. The prospective borrower has
10 days from this commitment date within which to accept the loan. The loan must
close within 45 days of this acceptance date. The interest rate at which the
loan will be made is fixed for 60 days from the date of the loan application. At
March 31, 1998, commitments to cover originations of mortgage loans totalled
$1,705,000. We believe that virtually all of our commitments will be funded.
Loans to One Borrower. The maximum amount of loans which we may make to
any one borrower may not exceed the greater of $500,000 or 15% of our unimpaired
capital and unimpaired surplus. We may lend an additional 10% of our unimpaired
capital and unimpaired surplus if the loan is fully secured by readily
marketable collateral. Our maximum loan to one borrower limit was $500,000 at
March 31, 1998. One loan exceeded this limit at March 31, 1998. This loan is
being refinanced so that it is within the required limit. At March 31, 1998, the
aggregate loans of our five largest borrowers have outstanding balances of
between $345,000 and $504,000.
Nonperforming and Problem Assets
Loan Delinquencies. When a mortgage loan becomes 15 days past due, a
notice of nonpayment is sent to the borrower. After the loan becomes 30 days
past due, another notice of nonpayment, accompanied by a personal letter, is
sent to the borrower. If the loan continues in a delinquent status for 90 days
past due and no repayment plan is in effect, foreclosure proceedings will be
initiated. The borrower will be notified when foreclosure is commenced. Although
generally our policy is to discontinue accruing interest on loans ^more than 90
days past due, in certain circumstances exceptions may be made if upon review
there is adequate collateral to justify continuing to accrue interest on ^such
loans.
Loans are reviewed on a monthly basis and are placed on a non-accrual
status when, in our opinion, the collection of additional interest is doubtful.
Interest accrued and unpaid at the time a loan is placed on nonaccrual status is
charged against interest income. Subsequent interest payments, if any, are
either applied to the outstanding principal balance or recorded as interest
income, depending on the assessment of the ultimate collectibility of the loan.
57
<PAGE>
Nonperforming Assets. The following table sets forth information
regarding nonaccrual loans and real estate owned, as of the dates indicated. For
the six months ended March 31, 1998, interest income that would have been
recorded on loans accounted for on a non-accrual basis under the original terms
of such loans was $8,000.
<TABLE>
<CAPTION>
At March 31, At September 30,
------------ -----------------------
1998 1997 1996
(Dollars in thousands)
<S> <C> <C> <C>
Loans accounted for on a non-accrual basis:
Mortgage loans:
Permanent loans secured by 1-4 family units................. $ ^ 192 $ 199 $ --
All other mortgage loans.................................... 74 -- --
------- ------- ------
Total......................................................... $ ^ 266 $ 199 $ --
========= ^======= ======
Accruing loans which are contractually past due 90 days or more:
Mortgage loans:
Permanent loans secured by 1-4 family units................. $ ^-- $ -- $ 9
Total......................................................... ^-- -- 9
Total non-accrual and accrual loans........................... 266 199 9
Real estate owned............................................. -- -- 298
Total nonperforming assets.................................... 266 199 307
Total non-accrual and accrual loans to net loans.............. 0.94% 0.75% 0.04%
Total non-accrual and accrual loans to total assets...........
0.69% 0.53% 0.03%
Total non performing assets to total assets................... 0.69% 0.53% 0.89%
</TABLE>
Classified Assets. OTS regulations provide for a classification system
for problem assets of savings associations which covers all problem assets.
Under this classification system, problem assets of savings institutions such as
ours are classified as "substandard," "doubtful," or "loss." An asset is
considered substandard if it is inadequately protected by the current net worth
and paying capacity of the borrower or of the collateral pledged, if any.
Substandard assets include those characterized by the "distinct possibility"
that the savings institution will sustain "some loss" if the deficiencies are
not corrected. Assets classified as doubtful have all of the weaknesses inherent
in those classified substandard, with the added characteristic that the
weaknesses present make "collection or liquidation in full," on the basis of
currently existing facts, conditions, and values, "highly questionable and
improbable." Assets classified as loss are those considered "uncollectible" and
of such little value that their continuance as assets without the establishment
of a specific loss reserve is not warranted. Assets may be designated "special
mention" because of potential weakness that do not currently warrant
classification in one of the aforementioned categories.
When a savings association classifies problem assets as either
substandard or doubtful, it may establish general allowances for loan losses in
an amount deemed prudent by management. General allowances represent loss
allowances which have been established to recognize the inherent risk associated
with lending activities, but which, unlike specific allowances, have not been
allocated to particular problem assets. When a savings association classifies
problem assets as loss, it is required either to establish a specific allowance
for losses equal to 100% of that portion of the asset so classified or to charge
off such amount. A savings association's determination as to the classification
of its assets and the amount of its valuation allowances is subject to review by
the OTS, which may order the
58
<PAGE>
establishment of additional general or specific loss allowances. A portion of
general loss allowances established to cover possible losses related to assets
classified as substandard or doubtful may be included in determining a savings
association's regulatory capital. Specific valuation allowances for loan losses
generally do not qualify as regulatory capital. At March 31, 1998, we had
$453,000 of loans classified as special mention, and no loans classified as
substandard, doubtful or loss.
Allowances for Loan Losses. A provision for loan losses is charged to
operations based on management's evaluation of the losses that may be incurred
in our loan portfolio. The evaluation, including a review of all loans on which
full collectibility of interest and principal may not be reasonably assured,
considers: (i) our past loan loss experience, (ii) known and inherent risks in
our portfolio, (iii) adverse situations that may affect the borrower's ability
to repay, (iv) the estimated value of any underlying collateral, and (v) current
economic conditions.
We monitor our allowance for loan losses and make additions to the
allowance as economic conditions dictate. Although we maintain our allowance for
loan losses at a level that we consider adequate for the inherent risk of loss
in our loan portfolio, future losses could exceed estimated amounts and
additional provisions for loan losses could be required. In addition, our
determination as to the amount of allowance for loan losses is subject to review
by the OTS, as part of its examination process. After a review of the
information available, the OTS might require the establishment of an additional
allowance.
The following table illustrates the allocation of the allowance for
loan losses for each category of loans. The allocation of the allowance to each
category is not necessarily indicative of future loss in any particular category
and does not restrict our use of the allowance to absorb losses in other loan
categories.
<TABLE>
<CAPTION>
At March 31, At September 30,
----------------------- ---------------------------------------------------------
1998 1997 1996
----------------------- ----------------------------- ----------------------
Percent of Percent of Percent
Loans in Loans in of Loans
Each Each in Each
Category Category Category
to Total to Total to Total
Amount Loans Amount Loans Amount Loans
------ ----- ------ ----- ------ -----
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C>
Residential............................ $ ^ 75 60.00% $ 66 100.00% $ 58 100.00%
Construction........................... -- -- -- -- -- --
Commercial ^ real estate............... 4 3.20 -- -- -- --
Commercial lines of credit............. 40 32.00 -- -- -- --
Consumer ............................. ^ 6 4.80 -- -- -- --
------ ------ ----- ----- ----- -----
Total allowance for
loan losses...................... $ 125 100.00% $ 66 100.00% $ 58 100.00%
===== ====== ===== ====== ==== ======
</TABLE>
59
<PAGE>
The following table sets forth information with respect to our
allowance for loan losses at the dates and for the periods indicated:
<TABLE>
<CAPTION>
At March 31, At September 30,
------------ ---------------------------
1998 1997 1996
---- -------- --------
(Dollars in thousands)
<S> <C> <C> <C>
Total loans outstanding (1)............................ $28,405 $26,409 $23,261
====== ====== ======
Average loans outstanding(1)........................... $27,392 $24,832 $21,636
====== ====== ======
Allowance balances (at beginning of period)............ 66 58 46
Provision:
Residential.......................................... ^ 19 8 20
Commercial real estate............................... ^ 4 -- --
Commercial lines of credit........................... 40 -- --
Consumer............................................. ^ 6 -- --
Net recoveries......................................... -- -- 8
------ ------ ------
Allowance balance (at end of period)................... $ 125 $ 66 $ 58
====== ====== ======
Allowance for loan losses as a percent of
total loans outstanding.............................. 0.44% 0.25% 0.25%
Net loans charged off as a percent of average
loans outstanding.................................... --% --% --%
</TABLE>
(1) Excludes allowance for loan losses and deferred loan origination fees and
costs.
Investment Activities
Investment Securities. We are required under federal regulations to
maintain a minimum amount of liquid assets which may be invested in specified
short-term securities and certain other investments. See "Regulation -- Savings
Institution Regulation -- Federal Home Loan Bank System" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations --
Liquidity and Capital Resources." The level of liquid assets varies depending
upon several factors, including: (i) the yields on investment alternatives, (ii)
our judgment as to the attractiveness of the yields then available in relation
to other opportunities, (iii) expectation of future yield levels, (iv)
asset/liability management, and (v) our projections as to the short-term demand
for funds to be used in loan origination and other activities. We classify our
investment securities as "available-for-sale" or "held-to-maturity" in
accordance with SFAS No. 115. At March 31, 1998, our investment portfolio policy
permitted investments in instruments such as: (i) U.S. Treasury obligations,
(ii) U.S. federal agency or federally sponsored agency obligations, (iii) local
municipal obligations, (iv) mortgage-backed securities, (v) banker's
acceptances, (vi) certificates of deposit, (vii) federal funds, including FHLB
overnight and term deposits (up to six months), (viii) collateralized automobile
receivables, and (ix) investment grade corporate bonds, commercial paper and
mortgage derivative products. See "-- Mortgage-Backed Securities." The board of
directors may authorize additional investments.
Our investment securities "available-for-sale" and "held-to-maturity"
portfolios at March 31, 1998, did not contain securities of any issuer with an
aggregate book value in excess of 10% of our equity, excluding those issued by
the United States government agencies.
60
<PAGE>
Mortgage-Backed Securities. To supplement lending activities, we have
invested in residential mortgage-backed securities. Mortgage-backed securities
can serve as collateral for borrowings and, through repayments, as a source of
liquidity. Mortgage-backed securities represent a participation interest in a
pool of single-family or other type of mortgages. Principal and interest
payments are passed from the mortgage originators, through intermediaries
(generally quasi-governmental agencies) that pool and repackage the
participation interests in the form of securities, to investors such as us. The
quasi-governmental agencies guarantee the payment of principal and interest to
investors and include the FHLMC, the Government National Mortgage Association
("GNMA") and FNMA.
At March 31, 1998, all of our mortgage-backed securities portfolio was
classified as "held-to- maturity", and totalled $2.5 million. Each security was
issued by GNMA, FHLMC or FNMA. Expected maturities will differ from contractual
maturities due to scheduled repayments and because borrowers may have the right
to call or prepay obligations with or without prepayment penalties.
Mortgage-backed securities typically are issued with stated principal
amounts. The securities are backed by pools of mortgages that have loans with
interest rates that are within a set range and have varying maturities. The
underlying pool of mortgages can be composed of either fixed-rate or
adjustable-rate mortgage loans. Mortgage-backed securities are generally
referred to as mortgage participation certificates or pass-through certificates.
The interest rate risk characteristics of the underlying pool of mortgages
(i.e., fixed-rate or adjustable-rate) and the prepayment risk, are passed on to
the certificate holder. The life of a mortgage-backed pass-through security is
equal to the life of the underlying mortgages. Mortgage-backed securities issued
by FHLMC and GNMA make up a majority of the pass-through certificates market.
Investment Portfolio. The following table sets forth the carrying value
of our investments. See Notes 2, and 3 to our financial statements elsewhere in
this document.
<TABLE>
<CAPTION>
At March 31, At September 30,
------------ ---------------------
1998 1997 1996
--------- ------- -------
(In thousands)
<S> <C> <C> <C>
Investments securities held-to-maturity:
U.S. agency securities.................................. $2,659 $3,656 $5,302
State and local government.............................. 99 99 99
----- ----- -----
Total investment securities held-to-maturity......... 2,758 3,755 5,401
Investment securities available-for-sale:
FHLMC Stock............................................. 128 96 66
--- ---- ----
Total investment securities available-for-sale...... 128 96 66
Interest-bearing deposits................................. 2,450 1,082 361
FHLB stock................................................ 261 234 234
Mortgage-backed securities held-to-maturity............... 2,540 3,016 2,781
----- ----- -----
Total investments................................... $8,137 $8,183 $8,843
===== ===== =====
</TABLE>
61
<PAGE>
The following table sets forth certain information regarding scheduled
maturities, carrying values, approximate fair values, and weighted average
yields for our investments at March 31, 1998 by contractual maturity. The
following table does not take into consideration the effects of scheduled
repayments or the effects of possible prepayments.
<TABLE>
<CAPTION>
Total
One Year or Less One to Five Years Five to Ten Years More than Ten Years Investment Securities
---------------------- ------------------ -------------------- -------------------- --------------------------
Weighted Weighted Weighted Weighted Weighted
Carrying Average Carrying Average Carrying Average Carrying Average Carrying Average Market
Value Yield Value Yield Value Yield Value Yield Value Yield Value
------- ------- ------- ------- ------- ------- ------- ------- -------- -------- ------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. agency
securities....... $ -- --% $ 748 7.52% $1,412 3.91% $ 499 7.30% $2,659 5.56% $2,612
State and local
government....... -- -- -- -- -- -- 99 6.05 99 6.05 112
FHLMC stock........ 128 7.03 -- -- -- -- -- -- 128 7.03 128
Interest-
bearing
deposits......... 2,450 5.05 -- -- -- -- -- -- 2,450 5.05 2,450
FHLB stock......... -- -- -- -- -- -- 261 7.15 261 7.15 261
Mortgage-backed
securities....... 461 5.40 197 5.50 406 6.00 1,476 7.11 2,540 6.18 2,540
------ ------ ----- ----- ----- ------ ------ ----- ----- ----- -----
Total
investments.... $3,039 5.19% $ 945 7.10% $1,818 4.37% $ 2,335 7.11% $8,137 5.68% $8,103
===== ====== ===== ===== ===== ===== ====== ===== ===== ===== =====
</TABLE>
62
<PAGE>
Sources of Funds
Deposits are our major external source of funds for lending and other
investment purposes. Funds are also derived from the receipt of payments on
loans and prepayment of loans and maturities of investment securities and
mortgage-backed securities and borrowings and operations. Scheduled loan
principal repayments are a relatively stable source of funds, while deposit
inflows and outflows and loan prepayments are significantly influenced by
general interest rates and market conditions.
Deposits. Consumer and commercial deposits are attracted principally
from within our primary market area through the offering of a selection of
deposit instruments including checking accounts, regular savings accounts, money
market accounts, and term certificate accounts. IRA accounts are also offered.
The products and services offered by the Bank will not be materially affected by
the conversion.
Deposit account terms vary according to the minimum balance required,
the time period the funds must remain on deposit, and the interest rate. ^ The
interest rates paid by us on deposits are set weekly at the direction of our
senior management. Interest rates are determined based on our liquidity
requirements, interest rates paid by our competitors, and our growth goals and
applicable regulatory restrictions and requirements.
Regular savings, money market demand and NOW accounts constituted $14.1
million, or 39.1%, of our deposit portfolio at March 31, 1998. Certificates of
deposit constituted $19.5 million or 54.0% of the deposit portfolio of which
$1.7 million or 4.7% of the deposit portfolio were certificates of deposit with
balances of $100,000 or more. Noninterest-bearing accounts totalled $2.9 million
or 8.3% of our deposits at March 31, 1998. Such deposits are offered at
negotiated rates. As of March 31, 1998, we had no brokered deposits.
At March 31, 1998, our deposits were represented by the various types
of savings programs described below.
<TABLE>
<CAPTION>
Percentage
Interest Minimum of Total
Category Term Rate(1) Balance Amount Balance Deposits
- -------- ---- ------- -------------- ------- --------
(In thousands)
<S> <C> <C> <C> <C> <C>
Transactions and Savings:
NOW accounts None 1.75% $ N/A $ 4,516 12.51%
Passbook accounts None 2.50 N/A 7,007 19.42
Money market demand accounts None 2.62 2,500 2,540 7.04
Noninterest-bearing accounts None -- N/A 2,551 7.07
------- ------
Total non-certificates 16,614 46.04
Certificates of Deposit:
Fixed Term, Fixed-rate 91 Days 4.43 2,500 926 2.57
Fixed Term, Fixed-rate 4-6 Months 4.70 2,500 2,834 7.85
Fixed Term, Fixed-rate 7-12 Months 5.36 N/A 7,381 20.45
Fixed Term, Fixed-rate 13-24 Months 5.64 N/A 4,685 12.98
Fixed Term, Fixed-rate 25-36 Months 5.69 N/A 945 2.62
Fixed Term, Fixed-rate 36-48 Months 5.83 N/A 515 1.43
Fixed Term, Fixed-rate 49-120 Months 5.83 N/A 2,188 6.06
------ ------
Total certificates of deposit 19,474 53.96
------ ------
Total deposits $36,088 100.00%
====== ======
</TABLE>
- ------------------
(1) Current interest rate as of March 31, 1998.
63
<PAGE>
The following table sets forth our time deposits classified by interest
rate at the dates indicated.
March 31, At September 30,
----------- -------------------------------
1998 1997 1996
----------- ------------ ----------
(In thousands)
Interest Rate
3.00 or less....................... $ -- $ -- $ 3
3.01 - 4.00%....................... 529 660 1,263
4.01 - 5.01%....................... 3,658 2,278 4,636
5.01 - 6.00%....................... 14,369 15,905 9,642
6.01 - 7.00%....................... 918 1,027 1,472
------ ------ ------
Total.......................... $19,474 $19,870 $17,016
====== ====== ======
The following table sets forth the amount and maturities of time
deposits in the Bank classified by interest rate as of the dates indicated.
Amount Due
-----------------------------------------------------------
One to Two to Over
Interest Rate One Year Two Years Three Years Three Years Total
- ------------- ---------- --------- ---------- ---------- ---------
(In thousands)
3.01-4.00%........ $ 110 $ 196 $ 223 $ -- $ 529
4.01-5.00......... 3,601 47 10 -- 3,658
5.01-6.00%........ 5,226 6,237 2,168 738 14,369
6.01-7.00%........ 107 198 213 400 918
------ ------ ------ ------ -------
Total........ $ 9,044 $ 6,678 $2,614 $1,138 $19,474
====== ====== ===== ===== ======
The following table indicates the amount of our certificates of ^
deposit of $100,000 or more by time remaining until maturity as of March 31,
1998.
Certificates
Maturity Period of ^ Deposit
--------------- ------------
(In thousands)
Within three months............... $ 543
Three through six months.......... 104
Six through twelve months......... 501
Over twelve months............... 547
-----
$1,695
======
64
<PAGE>
Borrowings. Advances (borrowings) may be obtained from the FHLB of New
York to supplement our supply of lendable funds. Advances from the FHLB of New
York are typically secured by a pledge of our stock in the FHLB of New York, a
portion of our first mortgage loans and other assets. Each FHLB credit program
has its own interest rate (which may be fixed or adjustable) and range of
maturities. We may borrow up to $9.4 million from the FHLB of New York. If the
need arises, we may also access the Federal Reserve Bank discount window to
supplement our supply of lendable funds and to meet deposit withdrawal
requirements. At March 31, 1998 and September 30, 1997, we had no borrowings or
advances outstanding from the FHLB of New York. We had no other borrowings
outstanding.
The following table sets forth the terms of our short-term FHLB
advances.
At or for the periods ended
March 31, 1998 September 30, 1997
-------------- ------------------
(Dollars in thousands)
Balance at period end............ $ -- $ --
Average balance outstanding 1,302
during the period.............. --
Maximum amount outstanding
at any month-end during
the period..................... -- 3,585
Weighted average interest rate
during the period.............. --% 6.14%
Competition
Competition for deposits comes from other insured financial
institutions such as commercial banks, thrift institutions, credit unions,
finance companies, and multi-state regional banks in our market areas.
Competition for funds also includes a number of insurance products sold by local
agents and investment products such as mutual funds and other securities sold by
local and regional brokers. Loan competition varies depending upon market
conditions and comes from commercial banks, thrift institutions, credit unions
and mortgage bankers.
65
<PAGE>
Properties
We operate from our main office and one branch office.
^ Net Book Value
Leased or Year Of Real Property at
Location Owned ^ Acquired March 31, 1998
---------------- ----- ----------- ---------------
MAIN OFFICE:
789 Farnsworth Avenue
Bordentown, New Jersey ^
08505 Own 1975 $1,266,995
BRANCH OFFICE:
4 Broad Street
Florence, New Jersey ^
08518 Own 1985 $ 94,215
Personnel
At March 31, 1998 we had 14 full-time employees and one part-time
employee. None of our employees are represented by a collective bargaining
group. We believe that our relationship with our employees is good.
Legal Proceedings
We are, from time to time, a party to legal proceedings arising in the
ordinary course of our business, including legal proceedings to enforce our
rights against borrowers. We are not a party to any legal proceedings which are
expected to have a material adverse effect on our financial statements.
REGULATION
Set forth below is a brief description of certain laws which relate to
us. The description is not complete and is qualified in its entirety by
references to applicable laws and regulation.
Holding Company Regulation
General. The Company will be required to register and file reports with
the OTS and will be subject to regulation and examination by the OTS. In
addition, the OTS will have enforcement authority over the Company and any
non-savings institution subsidiaries. This will permit the OTS to restrict or
prohibit activities that it determines to be a serious risk to us. This
regulation is intended primarily for the protection of our depositors and not
for the benefit of you, as stockholders of the Company.
QTL Test. Since the Company will only own one savings institution, it
will be able to diversify its operations into activities not related to banking,
but only so long as we satisfy the QTL test. If the Company controls more than
one savings institution, it would lose the ability to diversify its operations
into nonbanking related activities, unless such other savings institutions each
also qualify as a QTL or were acquired in a supervised acquisition. See "--
Savings Institution Regulation -- Qualified Thrift Lender Test."
66
<PAGE>
Restrictions on Acquisitions. The Company must obtain approval from the
OTS before acquiring control of any other SAIF-insured savings institution. No
person may acquire control of a federally insured savings institution without
providing at least 60 days written notice to the OTS and giving the OTS an
opportunity to disapprove the proposed acquisition.
Savings Institution Regulation
General. As a federally chartered, SAIF-insured savings institution, we
are subject to extensive regulation by the OTS and the FDIC. Our lending
activities and other investments must comply with various federal and state
statutory and regulatory requirements. We are also subject to certain reserve
requirements promulgated by the Board of Governors of the Federal Reserve System
("Federal Reserve").
The OTS, in conjunction with the FDIC, regularly examines us and
prepares reports for the consideration of our board of directors on any
deficiencies that the OTS finds in our operations. Our relationship with our
depositors and borrowers is also regulated to a great extent by federal and
state law, especially in such matters as the ownership of savings accounts and
the form and content of our mortgage documents.
We must file reports with the OTS and the FDIC concerning our
activities and financial condition, in addition to obtaining regulatory
approvals prior to entering into certain transactions such as mergers with or
acquisitions of other financial institutions. This regulation and supervision
establishes a comprehensive framework of activities in which an institution can
engage and is intended primarily for the protection of the SAIF and depositors.
The regulatory structure also gives the regulatory authorities extensive
discretion in connection with their supervisory and enforcement activities and
examination policies, including policies with respect to the classification of
assets and the establishment of adequate loan loss reserves for regulatory
purposes. Any change in regulations, whether by the OTS, the FDIC or any other
government agency, could have a material adverse impact on our operations.
Insurance of Deposit Accounts. The FDIC is authorized to establish
separate annual assessment rates for deposit insurance for members of the BIF
and the SAIF. The FDIC may increase assessment rates for either fund if
necessary to restore the fund's ratio of reserves to insured deposits to its
target level within a reasonable time and may decrease such assessment rates if
such target level has been met. The FDIC has established a risk-based assessment
system for both SAIF and BIF members. Under this system, assessments are set
within a range, based on the risk the institution poses to its deposit insurance
fund. This risk level is determined based on the institution's capital level and
the FDIC's level of supervisory concern about the institution.
Because a significant portion of the assessments paid into the SAIF by
savings institutions were used to pay the cost of prior savings institution
failures, the reserves of the SAIF were below the level required by law. The BIF
had, however, met its required reserve level during the third calendar quarter
of 1995. As a result, deposit insurance premiums for deposits insured by the BIF
were substantially less than premiums for deposits such as ours which are
insured by the SAIF. Legislation to capitalize the SAIF and to eliminate the
significant premium disparity between the BIF and the SAIF became effective
September 30, 1996. The recapitalization plan provided for a special assessment
equal to $.657 per $100 of SAIF deposits held at March 31, 1995, in order to
increase SAIF reserves to the level required by law. Certain BIF institutions
holding SAIF-insured deposits were required to pay a lower special assessment.
Based on our deposits at March 31, 1995, we paid a pre-tax special assessment of
$192,000.
67
<PAGE>
The recapitalization plan also provides that the cost of prior failures
which were funded through the issuance of Fico Bonds (bonds issued to fund the
cost of savings institution failures in prior years) will be shared by members
of both the SAIF and the BIF. This will increase BIF assessments for healthy
banks to approximately $.013 per $100 of deposits in 1997. SAIF assessments for
healthy savings institutions in 1997 will be approximately $.064 per $100 in
deposits and may be reduced, but not below the level set for healthy BIF
institutions.
The FDIC has lowered the rates on assessments paid to the SAIF and
widened the spread of those rates. The FDIC's action established a base
assessment schedule for the SAIF with rates ranging from 4 to 31 basis points,
and an adjusted assessment schedule that reduces these rates by 4 basis points.
As a result, the effective SAIF rates range from 0 to 27 to basis points as of
October 1, 1996. In addition, the FDIC's final rule prescribed a special interim
schedule of rates ranging from 18 to 27 basis points for SAIF-member savings
institutions for the last quarter of calendar 1996, to reflect the assessments
paid to the Financing Corp. (Fico Bonds). Finally, the FDIC's action established
a procedure for making limited adjustments to the base assessment rates by
rulemaking without notice and comment, for both the SAIF and the BIF.
The recapitalization plan also provides for the merger of the SAIF and
BIF effective January 1, 1999, assuming there are no savings institutions under
federal law. Under separate proposed legislation, Congress is considering the
elimination of the federal thrift charter and elimination of the separate
federal regulation of thrifts. As a result, we might have to convert to a
different financial institution charter and be regulated under federal law as a
bank, including being subject to the more restrictive activity limitations
imposed on national banks. We cannot predict the impact of our conversion to, or
regulation as, a bank until the legislation requiring such change is enacted.
Regulatory Capital Requirements. OTS capital regulations require
savings institutions to meet three capital standards: (1) tangible capital equal
to 1.5% of total adjusted assets, (2) core capital equal to at least 3% of total
adjusted assets, and (3) risk-based capital equal to 8% of total risk-weighted
assets. Our capital ratios are set forth under "Historical and Pro Forma Capital
Compliance."
Tangible capital is defined as core capital less all intangible assets
(including supervisory goodwill), less certain mortgage servicing rights and
less certain investments. Core capital is defined as common stockholders' equity
(including retained earnings), noncumulative perpetual preferred stock and
minority interests in the equity accounts of consolidated subsidiaries, certain
nonwithdrawable accounts and pledged deposits of mutual savings associations and
qualifying supervisory goodwill, less nonqualifying intangible assets, certain
mortgage servicing rights and certain investments.
The risk-based capital standard for savings institutions requires the
maintenance of total risk-based capital (which is defined as core capital plus
supplementary capital) of 8% of risk-weighted assets. The components of
supplementary capital include, among other items, cumulative perpetual preferred
stock, perpetual subordinated debt, mandatory convertible subordinated debt,
intermediate-term preferred stock, and the portion of the allowance for loan
losses not designated for specific loan losses. The portion of the allowance for
loan and lease losses includable in supplementary capital is limited to a
maximum of 1.25% of risk-weighted assets. Overall, supplementary capital is
limited to 100% of core capital. A savings association must calculate its
risk-weighted assets by multiplying each asset and off-balance sheet item by
various risk factors as determined by the OTS, which range from 0% for cash to
100% for delinquent loans, property acquired through foreclosure, commercial
loans, and other assets.
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The risk-based capital standards of the OTS generally require savings
institutions with more than a "normal" level of interest rate risk to maintain
additional total capital. An institution's interest rate risk will be measured
in terms of the sensitivity of its "net portfolio value" to changes in interest
rates. Net portfolio value is defined, generally, as the present value of
expected cash inflows from existing assets and off-balance sheet contracts less
the present value of expected cash outflows from existing liabilities. A savings
institution will be considered to have a "normal" level of interest rate risk
exposure if the decline in its net portfolio value after an immediate 200 basis
point increase or decrease in market interest rates (whichever results in the
greater decline) is less than two percent of the current estimated economic
value of its assets. An institution with a greater than normal interest rate
risk will be required to deduct from total capital, for purposes of calculating
its risk-based capital requirement, an amount (the "interest rate risk
component") equal to one-half the difference between the institution's measured
interest rate risk and the normal level of interest rate risk, multiplied by the
economic value of its total assets.
The OTS calculates the sensitivity of an institution's net portfolio
value with data submitted by the institution and the interest rate risk
measurement model adopted by the OTS. The amount of the interest rate risk
component, if any, to be deducted from an institution's total capital will be
based on the institution's Thrift Financial Report filed two quarters earlier.
Savings institutions with less than $300 million in assets and a risk-based
capital ratio above 12% are generally exempt from filing the interest rate risk
schedule with their Thrift Financial Reports. However, the OTS may require any
exempt institution that it determines may have a high level of interest rate
risk exposure to file such schedule on a quarterly basis and may be subject to
an additional capital requirement based upon its level of interest rate risk as
compared to its peers. Although the rule is not yet in effect, due to our net
size and risk-based capital level, we are exempt from the interest rate risk
component.
Dividend and Other Capital Distribution Limitations. OTS regulations
require us to give the OTS 30 days advance notice of any proposed declaration of
dividends to the Company, and the OTS has the authority under its supervisory
powers to prohibit the payment of dividends by us to the Company. In addition,
we may not declare or pay a cash dividend on our capital stock if the effect
would be to reduce our regulatory capital below the amount required for the
liquidation account to be established at the time of the conversion. See "The
Conversion -- Effects of Conversion to Stock Form on Depositors and Borrowers of
Peoples Savings Bank -- Liquidation Account."
OTS regulations impose limitations upon all capital distributions by
savings institutions, such as cash dividends, payments to repurchase or
otherwise acquire its shares, payments to stockholders of another institution in
a cash-out merger, and other distributions charged against capital. The rule
establishes three tiers of institutions based primarily on an institution's
capital level. An institution that exceeds all fully phased-in capital
requirements before and after a proposed capital distribution ("Tier 1
institution") and has not been advised by the OTS that it is in need of more
than the normal supervision can, after prior notice but without the approval of
the OTS, make capital distributions during a calendar year equal to the greater
of (i) 100% of its net income to date during the calendar year plus the amount
that would reduce by one-half its "surplus capital ratio" (the excess capital
over its fully phased-in capital requirements) at the beginning of the calendar
year, or (ii) 75% of its net income over the most recent four quarter period.
Any additional capital distributions require prior regulatory notice. As of
September 30, 1997, we qualified as a Tier 1 institution.
In January 1998, the OTS proposed amendments to its current regulations
with respect to capital distributions by savings associations. Under the
proposed regulation, savings associations that would remain at least adequately
capitalized following the capital distribution, and that meet other specified
requirements, would not be required to file a notice or application for capital
distributions (such as cash dividends) declared below specified amounts. Under
the proposed regulation, savings associations which
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are eligible for expedited treatment under current OTS regulations are not
required to file a notice or an application with the OTS if (i) the savings
association would remain at least adequately capitalized following the capital
distribution and (ii) the amount of the capital distribution does not exceed an
amount equal to the savings association's net income for that year to date, plus
the savings association's retained net income for the previous two years. Thus,
under the proposed regulation, only undistributed net income for the prior two
years may be distributed in addition to the current year's undistributed net
income without the filing of an application with the OTS. Savings associations
which do not qualify for expedited treatment or which desire to make a capital
distribution in excess of the specified amount, must file an application with,
and obtain the approval of, the OTS prior to making the capital distribution.
Under certain other circumstances, savings associations will be required to file
a notice with OTS prior to making the capital distribution. All savings
associations which are subsidiaries of holding companies, as we will be
following the Conversion, will be required to file a notice with the OTS prior
to making a capital distribution. The OTS proposed limitations on capital
distributions are similar to the limitations imposed upon national banks. The
Association is unable to predict whether or when the proposed regulation will
become effective.
In the event our capital falls below our fully phased-in requirement or
the OTS notifies us that we are in need of more than normal supervision, we
would become a Tier 2 or Tier 3 institution and as a result, our ability to make
capital distributions could be restricted. Tier 2 institutions, which are
institutions that before and after the proposed distribution meet their current
minimum capital requirements, may only make capital distributions of up to 75 %
of net income over the most recent four quarter period. Tier 3 institutions,
which are institutions that do not meet current minimum capital requirements and
propose to make any capital distribution, and Tier 2 institutions that propose
to make a capital distribution in excess of the noted safe harbor level, must
obtain OTS approval prior to making such distribution. In addition, the OTS
could prohibit a proposed capital distribution by any institution, which would
otherwise be permitted by the regulation, if the OTS determines that such
distribution would constitute an unsafe or unsound practice. The OTS has
proposed rules relaxing certain approval and notice requirements for
well-capitalized institutions.
A savings institution is prohibited from making a capital distribution
if, after making the distribution, the savings institution would be
undercapitalized (i.e., not meet any one of its minimum regulatory capital
requirements). Further, a savings institution cannot distribute regulatory
capital that is needed for its liquidation account.
Qualified Thrift Lender Test. Savings institutions must meet a
qualified thrift lender ("QTL") test. If we maintain an appropriate level of
qualified thrift investments ("QTIs") (primarily residential mortgages and
related investments, including certain mortgage-related securities) and
otherwise qualify as a QTL, we will continue to enjoy full borrowing privileges
from the FHLB of New York. The required percentage of QTIs is 65% of portfolio
assets (defined as all assets minus intangible assets, property used by the
institution in conducting its business and liquid assets equal to 10% of total
assets). Certain assets are subject to a percentage limitation of 20% of
portfolio assets. In addition, savings institutions may include shares of stock
of the FHLBs, FNMA, and FHLMC as QTIs. Compliance with the QTL test is
determined on a monthly basis in nine out of every 12 months. As of March 31,
1998, we were in compliance with our QTL requirement with approximately 88.06%
of our assets invested in QTIs.
Transactions With Affiliates. Generally, restrictions on transactions
with affiliates require that transactions between a savings institution or its
subsidiaries and its affiliates be on terms as favorable to the savings
institution as comparable transactions with non-affiliates. In addition, certain
of these transactions are restricted to an aggregate percentage of the savings
institution's capital. Collateral in
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specified amounts must usually be provided by affiliates in order to receive
loans from the savings institution. Within certain limits, affiliates are
permitted to receive more favorable loan terms than non-affiliates. Our
affiliates include the Company and any company which would be under common
control with us. In addition, a savings institution may not extend credit to any
affiliate engaged in activities not permissible for a bank holding company or
acquire the securities of any affiliate that is not a subsidiary. The OTS has
the discretion to treat subsidiaries of savings institution as affiliates on a
case-by-case basis.
Liquidity Requirements. All savings institutions are required to
maintain an average daily balance of liquid assets equal to a certain percentage
of the sum of its average daily balance of net withdrawable deposit accounts and
borrowings payable in one year or less. The liquidity requirement may vary from
time to time (between 4% and 10%) depending upon economic conditions and savings
flows of all savings institutions. At March 31, 1998, our required liquid asset
ratio was 4%. Our average liquid asset ratio at March 31, 1998 was 11.14%.
Monetary penalties may be imposed upon institutions for violations of liquidity
requirements.
Federal Home Loan Bank System. We are a member of the FHLB of New York,
which is one of 12 regional FHLBs. Each FHLB serves as a reserve or central bank
for its members within its assigned region. It is funded primarily from funds
deposited by savings institutions and proceeds derived from the sale of
consolidated obligations of the FHLB System. It makes loans to members (i.e.,
advances) in accordance with policies and procedures established by the board of
directors of the FHLB.
As a member, we are required to purchase and maintain stock in the FHLB
of New York in an amount equal to at least 1% of our aggregate unpaid
residential mortgage loans, home purchase contracts or similar obligations at
the beginning of each year. At March 31, 1998, we had $261,300 in FHLB stock, at
cost, which was in compliance with this requirement. The FHLB imposes various
limitations on advances such as limiting the amount of certain types of real
estate related collateral to 30% of a member's capital and limiting total
advances to a member.
The FHLBs are required to provide funds for the resolution of troubled
savings institutions and to contribute to affordable housing programs through
direct loans or interest subsidies on advances targeted for community investment
and low- and moderate-income housing projects. These contributions have
adversely affected the level of FHLB dividends paid and could continue to do so
in the future.
Federal Reserve. The Federal Reserve requires all depository
institutions to maintain non-interest-bearing reserves at specified levels
against their transaction accounts (primarily checking, NOW and Super NOW
checking accounts) and non-personal time deposits. The balances maintained to
meet the reserve requirements imposed by the Federal Reserve may be used to
satisfy the liquidity requirements that are imposed by the OTS. At March 31,
1998, our reserve met the minimum level required by the Federal Reserve.
Savings institutions have authority to borrow from the Federal Reserve
System "discount window," but Federal Reserve System policy generally requires
savings institutions to exhaust all other sources before borrowing from the
Federal Reserve System. We had no borrowings from the Federal Reserve System at
March 31, 1998.
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TAXATION
Federal Taxation
We are subject to the provisions of the Internal Revenue Code of 1986,
as amended (the "Code"), in the same general manner as other corporations.
Generally, thrifts with $500 million of assets or less may still use the
experience method in determining additions to bad debt reserves, which is also
available to small banks. Larger thrifts must use the specific charge off method
regarding bad debts. Any reserve amounts added to our bad debt reserve after
1987 will be recaptured into our taxable income over a six year period beginning
in 1996. A thrift may delay recapturing into income its post-1987 bad debt
reserves for an additional two years if it meets a residential lending test.
This recapture will not have a material impact on us.
Under the experience method, the bad debt deduction may be based on (i)
a six-year moving average of actual losses on qualifying and non-qualifying
loans, or (ii) a fill-up to the institution's base year reserve amount, which is
the tax bad debt reserve determined as of September 30, 1987.
If a savings institution's qualifying assets (generally, loans secured
by residential real estate or deposits, educational loans, cash and certain
government obligations) constitute less than 60% of its total assets, the
institution may not deduct any addition to a bad debt reserve and generally must
include existing reserves in income over a four year period, which is
immediately accruable for financial reporting purposes. As of March 31, 1998, at
least 60% of our assets were qualifying assets as defined in the Code. No
assurance can be given that we will meet the 60% test for subsequent taxable
years.
Earnings appropriated to our bad debt reserve and claimed as a tax
deduction including our supplemental reserves for losses will not be available
for the payment of cash dividends or for distribution to you, our stockholders
(including distributions made on dissolution or liquidation), unless we include
the amount in income. Distributable amounts may be reduced by any amount deemed
necessary to pay the resulting federal income tax. As of September 30, 1997, we
had $241,000 of accumulated earnings, representing our base year tax reserve,
for which federal income taxes have not been provided. If such amount is used
for any purpose other than bad debt losses, including a dividend distribution or
a distribution in liquidation, it will be subject to federal income tax at the
then current rate.
The Code imposes an alternative minimum tax ("AMT") on a corporation's
alternative minimum taxable income ("AMTI") at a rate of 20%. AMTI is increased
by certain preference items, including the excess of the tax bad debt reserve
deduction using the percentage of taxable income method over the deduction that
would have been allowable under the experience method. Only 90% of AMTI can be
offset by net operating loss carryovers of which we currently have none. AMTI is
also adjusted by determining the tax treatment of certain items in a manner that
negates the deferral of income resulting from the regular tax treatment of those
items. Thus, our AMTI is increased by an amount equal to 75 % of the amount by
which our adjusted current earnings exceeds our AMTI (determined without regard
to this adjustment and prior to reduction for net operating losses). In
addition, for taxable years beginning after September 30, 1986 and before
January 1, 1996, an environmental tax of 0.12% of the excess of AMTI (with
certain modifications) over $2 million is imposed on corporations, including us,
whether or not an AMT is paid. For tax years beginning in 1998 a corporation
that has had average annual gross receipts of $5 million or less over its 1995,
1996 and 1997 tax years will be a "small corporation." Once the corporation is
recognized as a small corporation it will be exempt from the AMT for so long as
its average annual gross receipts for the prior 3 year period does not exceed
$7,500,000. The Company will be recognized as a small corporation.
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The Company may exclude from its income 100% of dividends received from
us as a member of the same affiliated group of corporations. A 70% dividends
received deduction generally applies with respect to dividends received from
corporations that are not members of such affiliated group, except that an 80%
dividends received deduction applies if the Company owns more than 20% of the
stock of a corporation paying a dividend.
Our federal income tax returns have not been audited by the IRS during
the past ten years.
State Taxation
The Association files New Jersey income tax returns. For New Jersey
income tax purposes, savings institutions are presently taxed at a rate of up to
3% of net income, which is calculated based on federal taxable income, subject
to certain adjustments.
Our state tax returns have not been audited by the State of New Jersey
during the past ten years.
MANAGEMENT OF FARNSWORTH BANCORP, INC.
Our board of directors consists of the same individuals who serve as
directors of our subsidiary, Peoples Savings Bank. Our certificate of
incorporation and bylaws require that directors be divided into three classes,
as nearly equal in number as possible. Each class of directors serves for a
three-year period, with approximately one-third of the directors elected each
year. Our officers will be elected annually by the board and serve at the
board's discretion. See "Management of Peoples Savings Bank."
MANAGEMENT OF PEOPLES SAVINGS BANK
Directors and Executive Officers
Our board of directors is composed of seven members each of whom serves
for a term of three years, with approximately one-third of the directors elected
each year. Our current charter and bylaws and our proposed stock charter and
bylaws require that directors be divided into three classes, as nearly equal in
number as possible. Our officers are elected annually by our board and serve at
the board's discretion.
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The following table sets forth information with respect to our
directors and executive officers, all of whom will continue to serve in the same
capacities after the conversion.
Age at Current
March 31, Director Term
Name 1998 Position Since Expires(1)
- ---- ---- -------- -------- ----------
George G. Aaronson, Jr. 66 Director 1970 1999
Charles E. Adams 82 Director 1985 1998
Herman Gutstein 85 Chairman 1965 1999
G. Edward Koenig, Jr. 56 Director 1981 1999
Edgar N. Peppler 62 Director (Vice 1970 2000
Chairman)
William H. Wainwright, Jr. 67 Director 1986 1998
Gary N. Pelehaty 45 President, CEO 1992 2000
and Director
Charles Alessi 35 Vice President, N/A N/A
CFO, Secretary
and Treasurer
- --------------
(1) The terms for directors of the Company are the same as those of Peoples
Savings Bank.
The business experience for the past five years of each of the
directors and executive officers is as follows:
George G. Aaronson, Jr. has been a director of the Bank since 1970. He
is employed by Falconer & Bell as a real estate sales agent. Mr. Aaronson is
supervisor of the Burlington County Soil Conservation Committee.
Charles E. Adams has been a director of the Bank since 1985. Mr. Adams
is now retired, but was the Administrator and Secretary of Florence Township
Saving and Loan Association for 20 years. Mr. Adams is on the administrative
board of Florence United Methodist Church, and is treasurer of the Florence
Historical Society.
Herman Gutstein has been a director of the Bank since 1965. He has also
served as chairman of the board since 1992. Mr. Gutstein owns a convenience
store.
G. Edward Koenig, Jr. has, except for a three year hiatus ending in
1993, been a director since 1981. Mr. Koenig is President of E. J. Koenig Inc.,
a fuel service petroleum products company and a heating and air conditioning
equipment sales, installation and service business. Mr. Koenig sits on the
Burlington County Military Affairs Committee Executive Board and served as its
chairman from 1996 to 1997.
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Edgar N. Peppler has been a director of the Bank since 1970. He has
served as vice-chairman of the board since 1992. Mr. Peppler is part owner and
President of Peppler Funeral Home, a business he has been associated with since
1957. Mr. Peppler is a member of the Bordentown Chamber of Commerce, a past
president of the Bordentown Kiwanis Club, and a past master of the Masonic
Lodge.
William H. Wainwright, Jr. has been a director of the Bank since 1968.
Before retiring in 1995, he was employed for 20 years as a loan officer at the
Farmers Home Administration and the Small Business Administration. Mr.
Wainwright is a member of the Surf City Yacht Club and served as their Commodore
in 1996.
Gary N. Pelehaty has served the Bank as a director since October 1992.
He has also been President and Chief Executive Officer of the Bank since
February of the same year. Mr. Pelehaty is a director of First Nations Financial
Services Company. Active in the local community, Mr. Pelehaty serves on the
boards of directors of Bordentown Rotary, Burlington County Burn Foundation, and
is the finance chairman of Bordentown Veterans' Memorial Foundation. He is also
a former director of Bordentown's Chamber of Commerce and Vice President of the
Burlington/Camden Savings League.
Charles Alessi has been employed by the Bank since 1992 and is
Vice-President and our Chief Financial Officer. He is also Secretary and
Treasurer of the Bank. Mr. Alessi is a member of the Financial Managers Society.
Meetings and Committees of the Board of Directors
The board of directors conducts its business through meetings of the
board and through activities of its committees. During the year ended September
30, 1997, the board of directors held 24 regular meetings and one special
meeting. No director attended fewer than 75% of the total meetings of the board
of directors and committees on which such director served during this time
period.
Director Compensation
Each director is paid monthly. Total aggregate fees paid to the
directors for the year ended September 30, 1997 were $4,800. Since October 1,
1997, each director (including the chairman of the board) has been paid a
monthly fee of $500.
Directors Consultant and Retirement Plan ("DRP"). We intend to
establish a DRP which will provide retirement benefits to our directors based
upon the number of years of service to our board, which must be at least 5
years. If a director agrees to become a consulting director to our board upon
retirement, he or she will receive a monthly payment of $500 for 5 years or
until death, whichever is earlier. Benefits under our DRP will begin upon a
director's retirement. In the event there is a change in control, all directors
will be presumed to have not less than 5 years of service and each director will
receive a lump sum payment equal to the present value of future benefits
payable.
Executive Compensation
Summary Compensation Table. The following table sets forth the cash and
non-cash compensation awarded to or earned by our chief executive officer at
September 30, 1997. No other employee earned in excess of $100,000 for the year
ended September 30, 1997.
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<TABLE>
<CAPTION>
Annual Compensation
-------------------------------------------
Other Annual All Other
Name and Principal Position Salary Bonus Compensation Compensation
- --------------------------- ------ ----- ------------ ------------
<S> <C> <C> <C> <C>
Gary N. Pelehaty
Director, President and CEO $88,150 $ -- $4,800(1) $7,544(2)
</TABLE>
- -------------------
(1) Consists of Board fees.
(2) Consists of 401(k) plan matching contributions and cost of automobile.
Employment Agreement. We have entered into an employment agreement with
our President, Gary N. Pelehaty. Mr. Pelehaty's base salary under the employment
agreement is $90,000. The employment agreement has a term of three years. The
agreement is terminable by us for "just cause" as defined in the agreement. If
we terminate Mr. Pelehaty without just cause, he will be entitled to a
continuation of his salary from the date of termination through the remaining
term of the agreement but in no event for a period of less than twenty-four
months. The employment agreement contains a provision stating that in the event
of the termination of employment in connection with any change in control of us,
Mr. Pelehaty will be paid a lump sum amount equal to 2.99 times his five year
average annual taxable cash compensation. If such payments had been made under
the agreement as of September 30, 1997, such payments would have equaled
approximately $278,000. The aggregate payments that would have been made to Mr.
Pelehaty would be an expense to us, thereby reducing our net income and our
capital by that amount. The agreement may be renewed annually by our board of
directors upon a determination of satisfactory performance within the board's
sole discretion. If Mr. Pelehaty shall become disabled during the term of the
agreement, he shall continue to receive payment of 100% of the base salary for a
period of 12 months and 65% of such base salary for the remaining term of such
agreement. Such payments shall be reduced by any other benefit payments made
under other disability programs in effect for our employees.
Supplemental Executive Retirement Plan. We intend to implement a
supplemental executive retirement plan ("SERP") for the benefit of our
President, Mr. Pelehaty. The SERP will provide Mr. Pelehaty with a supplemental
retirement benefit in addition to benefits under the Bank's 401(k) Plan and the
proposed ESOP. Under the SERP, it is anticipated that an annual contribution
will be made to a reserve equal to approximately 10% of Mr. Pelehaty's
compensation. Upon retirement on or after age 55, Mr. Pelehaty may receive the
value of such reserve account payable in a lump-sum amount or in periodic
payments over a ten year period. The SERP is unfunded. All benefits payable
under the SERP would be paid from our current assets. There are no tax
consequences to either participant or us related to the SERP prior to payment of
benefits. Upon receipt of payment of benefits, the participant will recognize
taxable ordinary income in the amount of such payments received and we will be
entitled to recognize a tax-deductible compensation expense at that time.
Employee Stock Ownership Plan. We have established an employee stock
ownership plan, the ESOP, for the exclusive benefit of participating employees
of ours, to be implemented upon the completion of the conversion. Participating
employees are employees who have completed one year of service with us ^ and
have attained the age of 21. An application for a letter of determination as to
the tax-qualified status of the ESOP will be submitted to the IRS. Although no
assurances can be given, we expect that the ESOP will receive a favorable letter
of determination from the IRS.
The ESOP is to be funded by contributions made by us in cash or common
stock. Benefits may be paid either in shares of the common stock or in cash. In
accordance with the Plan, the ESOP may
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borrow funds with which to acquire up to 8% of the common stock to be issued in
the conversion. The ESOP intends to borrow funds from the Company. The loan is
expected to be for a term of ten years at an annual interest rate equal to the
prime rate as published in The Wall Street Journal. Presently it is anticipated
that the ESOP will purchase up to 8% of the common stock to be issued in the
offering (i.e., 33,200 shares, based on the midpoint of the EVR). The loan will
be secured by the shares purchased and earnings of ESOP assets. Shares purchased
with such loan proceeds will be held in a suspense account for allocation among
participants as the loan is repaid. We anticipate contributing approximately
$33,200 annually (based on a $332,000 purchase) to the ESOP to meet principal
obligations under the ESOP loan, as proposed. It is anticipated that all such
contributions will be tax-deductible. This loan is expected to be fully repaid
in approximately 10 years.
Shares sold above the maximum of the EVR (i.e., more than ^ 477,250
shares) may be sold to the ESOP before satisfying remaining unfilled orders of
Eligible Account Holders to fill the ESOP's subscription or the ESOP may
purchase some or all of the shares covered by its subscription after the
conversion in the open market.
Contributions to the ESOP and shares released from the suspense account
will be allocated among participants on the basis of total compensation. All
participants must be employed at least 1,000 hours in a plan year, or have
terminated employment following death, disability or retirement, in order to
receive an allocation. Participant benefits become vested in plan allocations
following five years of service. Employment prior to the adoption of the ESOP
shall be credited for the purposes of vesting. Vesting will be accelerated upon
retirement, death, disability, change in control of the Company, or termination
of the ESOP. Forfeitures will be reallocated to participants on the same basis
as other contributions in the plan year. Benefits may be payable in the form of
a lump sum upon retirement, death, disability or separation from service. Our
contributions to the ESOP are discretionary and may cause a reduction in other
forms of compensation. Therefore, benefits payable under the ESOP cannot be
estimated.
The board of directors has appointed non-employee directors to the ESOP
Committee to administer the ESOP and to serve as the initial ESOP Trustees. The
board of directors or the ESOP Committee may instruct the ESOP Trustees
regarding investments of funds contributed to the ESOP. The ESOP Trustees must
vote all allocated shares held in the ESOP in accordance with the instructions
of the participating employees. Unallocated shares and allocated shares for
which no timely direction is received will be voted by the ESOP Trustees as
directed by the board of directors or the ESOP Committee, subject to the
Trustees' fiduciary duties.
Proposed Future Stock Benefit Plans
Stock Option Plan. The board of directors intends to adopt a stock
option plan (the Option Plan) following the conversion, subject to approval by
the Company's stockholders, at a stockholders' meeting to be held no sooner than
six months after the conversion. The Option Plan would be in compliance with the
OTS regulations in effect. See "-- Restrictions on Stock Benefit Plans." If the
Option Plan is implemented within one year after the conversion, in accordance
with OTS regulations, a number of shares equal to 10% of the aggregate shares of
common stock to be issued in the offering (i.e., 41,500 shares based upon the
sale of 415,000 shares at the midpoint of the EVR) would be reserved for
issuance by the Company upon exercise of stock options to be granted at no cost
to our officers, directors and employees from time to time under the Option
Plan. The purpose of the Option Plan would be to provide additional performance
and retention incentives to certain officers, directors and employees by
facilitating their purchase of a stock interest in the Company. Under the OTS
regulations, the Option Plan, would provide for a term of 10 years, after which
no awards could be made, unless earlier terminated by the
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board of directors pursuant to the Option Plan and the options would vest over a
five year period (i.e., 20% per year), beginning one year after the date of
grant of the option. Options would be granted based upon several factors,
including seniority, job duties and responsibilities, job performance, our
financial performance and a comparison of awards given by other savings
institutions converting from mutual to stock form.
The Company would receive no monetary consideration for the granting of
stock options under the Option Plan. It would receive the option price for each
share issued to optionees upon the exercise of such options. The option price or
"exercise price" can be no less than the market price at the time the option was
granted. Accordingly, a value cannot yet be assigned to these options as they
are subject to the price of the stock at the date of the option award. Shares
issued as a result of the exercise of options will be either authorized but
unissued shares or shares purchased in the open market by the Company. However,
no purchases in the open market will be made that would violate applicable
regulations restricting purchases by the Company. The exercise of options and
payment for the shares received would contribute to the equity of the Company.
If the Option Plan is implemented more than one year after the
conversion, the Option Plan will comply with OTS regulations and policies that
are applicable at such time.
Restricted Stock Plan. The boards of directors intend to adopt the RSP
following the conversion, the objective of which is to enable us to retain
personnel and directors of experience and ability in key positions of
responsibility. The Company expects to hold a stockholders' meeting no sooner
than six months after the conversion in order for stockholders to vote to
approve the RSP. If the RSP is implemented within one year after the conversion,
in accordance with applicable OTS regulations, the shares granted under the RSP
will be in the form of restricted stock vesting over a five year period (i.e.,
20% per year) beginning one year after the date of grant of the award.
Compensation expense to the Association in the amount of the fair market value
of the common stock granted will be recognized pro rata over the years during
which the shares are payable. Until they have vested, such shares may not be
sold, pledged or otherwise disposed of and are required to be held in escrow.
Any shares not so allocated would be voted by the RSP Trustees. The RSP will be
implemented in accordance with applicable OTS regulations. See "-- Restrictions
on Stock Benefit Plans." Awards would be granted at no cost to recipients, based
upon a number of factors, including seniority, job duties and responsibilities,
job performance, our performance and a comparison of awards given by other
institutions converting from mutual to stock form. A value cannot be assigned to
the stock awarded until the stock vests. At vesting, the value is determined by
the market price of the stock. The RSP would be managed by a committee of
non-employee directors (the "RSP Trustees"). The RSP Trustees would have the
responsibility to invest all funds contributed by us to the trust created for
the RSP (the "RSP Trust").
We expect to contribute sufficient funds to the RSP so that the RSP
Trust can purchase, in the aggregate, up to 4% of the amount of common stock
that is sold in the conversion. The shares purchased by the RSP would be
authorized but unissued shares or would be purchased in the open market. In the
event the market price of the common stock is greater than $10 per share, our
contribution of funds will be increased. Likewise, in the event the market price
is lower than $10 per share, our contribution will be decreased. In recognition
of their prior and expected services to us and the Company, as the case may be,
the officers, other employees and directors responsible for implementation of
the policies adopted by the board of directors and our profitable operation
will, without cost to them, be awarded stock under the RSP. Based upon the sale
of 415,000 shares of common stock in the offering at the midpoint of the EVR,
the RSP Trust is expected to purchase up to 16,600 shares of common stock.
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<PAGE>
If the RSP is implemented more than one year after the conversion, the
RSP will comply with such OTS regulations and policies that are applicable at
such time.
Restrictions on Stock Benefit Plans. OTS regulations provide that in
the event stock option or management and/or employee stock benefit plans are
implemented within one year from the date of conversion, such plans must comply
with the following restrictions: (1) the plans must be fully disclosed in the
prospectus, (2) for stock option plans, the total number of shares for which
options may be granted may not exceed 10% of the shares issued in the
conversion, (3) for restricted stock plans, the shares may not exceed 3% of the
shares issued in the conversion (4% for institutions with 10% or greater
tangible capital), (4) the aggregate amount of stock purchased by the ESOP in
the conversion may not exceed 10% (8% for well-capitalized institutions
utilizing a 4% restricted stock plan), (5) no individual employee may receive
more than 25% of the available awards under the option plan or the restricted
stock plans, (6) directors who are not employees may not receive more than 5%
individually or 30% in the aggregate of the awards under any plan, (7) all plans
must be approved by a majority of the total votes eligible to be cast at any
duly called meeting of the Company's stockholders held no earlier than six
months following the conversion, (8) for stock option plans, the exercise price
must be at least equal to the market price of the stock at the time of grant,
(9) for restricted stock plans, no stock issued in a conversion may be used to
fund the plan, (10) neither stock option awards nor restricted stock awards may
vest earlier than 20% as of one year after the date of stockholder approval and
20% per year thereafter, and vesting may be accelerated only in the case of
disability or death (or if not inconsistent with applicable OTS regulations in
effect at such time, in the event of a change in control), (11) the proxy
material must clearly state that the OTS in no way endorses or approves of the
plans, and (12) prior to implementing the plans, all plans must be submitted to
the Regional Director of the OTS within five days after stockholder approval
with a certification that the plans approved by the stockholders are the same
plans that were filed with and disclosed in the proxy materials relating to the
meeting at which stockholder approval was received.
Certain Related Transactions. We grant loans to our officers, directors
and employees. These loans are made in the ordinary course of business and upon
the same terms, including collateral, as those prevailing at the time for
comparable transactions and do not involve more than the normal risk of
collectibility or present any other unfavorable features. Loans to officers and
directors and their affiliates amounted to $219,000, or 9.8% of our retained
earnings at March 31, 1998. Assuming the conversion had occurred at September
30, 1997 with the issuance of 415,000 shares, these loans would have totalled
approximately 3.9% of pro forma consolidated stockholders' equity.
RESTRICTIONS ON ACQUISITION OF FARNSWORTH BANCORP, INC.
While the board of directors is not aware of any effort that might be
made to obtain control of the Company after conversion, the board of directors
believes that it is appropriate to include certain provisions as part of the
Company's certificate of incorporation to protect the interests of the Company
and its stockholders from hostile takeovers ("anti-takeover" provisions) which
the board of directors might conclude are not in our best interests or those of
our stockholders. These provisions may have the effect of discouraging a future
takeover attempt which is not approved by the board of directors but which
individual stockholders may deem to be in their best interests or in which
stockholders may receive a substantial premium for their shares over the current
market prices. As a result, stockholders who might desire to participate in such
a transaction may not have the opportunity to do so. Such provisions will also
render the removal of the current board of directors or management of the
Company more difficult.
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<PAGE>
The following discussion is a general summary of the material
provisions of the certificate of incorporation, bylaws, and certain other
regulatory provisions of the Company, which may be deemed to have such an
anti-takeover effect. The description of these provisions is necessarily general
and reference should be made in each case to the certificate of incorporation
and bylaws of the Company which are filed as exhibits to the registration
statement of which this prospectus is a part. See "Where You Can Find Additional
Information" as to how to obtain a copy of these documents.
Provisions of the Company Certificate of Incorporation and Bylaws
Limitations on Voting Rights. The certificate of incorporation of the
Company provides that after completion of the conversion, in no event shall any
record owner of any outstanding common stock which is beneficially owned,
directly or indirectly, by a person who beneficially owns in excess of 10% of
the then outstanding shares of common stock (the "Limit"), be entitled or
permitted to any vote in respect of the shares held in excess of the Limit. In
addition, for a period of five years from the completion of our conversion, no
person may directly or indirectly offer to acquire or acquire the beneficial
ownership of more than 10% of any class of an equity security of the Company
without the approval of the Company's continuing directors.
The impact of these provisions on the submission of a proxy on behalf
of a beneficial holder of more than 10% of the common stock is (1) to disregard
for voting purposes and require divestiture of the amount of stock held in
excess of 10% (if within five years of the conversion more than 10% of the
common stock is beneficially owned by a person), and (2) limit the vote on
common stock held by the beneficial owner to 10% or possibly reduce the amount
that may be voted below the 10% level (if more than 10% of the common stock is
beneficially owned by a person more than five years after the conversion).
Unless the grantor of a revocable proxy is an affiliate or an associate of such
a 10% holder or there is an arrangement, agreement or understanding with such a
10% holder, these provisions would not restrict the ability of such a 10% holder
of revocable proxies to exercise revocable proxies for which the 10% holder is
neither a record owner nor otherwise a beneficial owner. A person is a
beneficial owner of a security if he has the power to vote or direct the voting
of all or part of the voting rights of the security, or has the power to dispose
of or direct the disposition of the security. The certificate of incorporation
of the Company further provides that this provision limiting voting rights may
only be amended upon the vote of 80% of the outstanding shares of voting stock.
Election of Directors. Certain provisions of the Company's certificate
of incorporation and bylaws will impede changes in majority control of the board
of directors. The Company's articles of incorporation provide that the board of
directors of the Company will be divided into three staggered classes, with
directors in each class elected for three-year terms. Thus, it would take two
annual elections to replace a majority of the Company's board. The Company's
certificate of incorporation provides that the size of the board of directors
may be increased or decreased only if approved by a vote of two-thirds of the
whole board of directors. The bylaws also provide that any vacancy occurring in
the board of directors, including a vacancy created by an increase in the number
of directors, may be filled only by the board of directors, acting by a majority
vote of the directors then in office and any director so chosen shall hold
office until the next succeeding annual election of directors. Finally, the
articles of incorporation and the bylaws impose certain notice and information
requirements in connection with the nomination by stockholders of candidates for
election to the board of directors or the proposal by stockholders of business
to be acted upon at an annual meeting of stockholders.
The certificate of incorporation provides that a director may only be
removed for cause by the affirmative vote of at least 80% of the shares of the
Company entitled to vote generally in an election of directors cast at a meeting
of stockholders called for that purpose.
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Restrictions on Call of Special Meetings. The certificate of
incorporation of the Company provides that a special meeting of stockholders may
be called only pursuant to a resolution adopted by a majority of the board of
directors, or by a committee of the board of directors which is authorized to
call such meetings, or by the President of the Company.
Absence of Cumulative Voting. The Company's certificate of
incorporation provides that stockholders may not cumulate their votes in the
election of directors.
Authorized Shares. The certificate of incorporation authorizes the
issuance of 5,000,000 shares of common stock and 1,000,000 shares of preferred
stock. The shares of common stock and preferred stock were authorized in an
amount greater than that to be issued in the conversion to provide the Company's
board of directors with as much flexibility as possible to effect, among other
transactions, financings, acquisitions, stock dividends, stock splits and the
exercise of stock options. However, these additional authorized shares may also
be used by the board of directors consistent with its fiduciary duty to deter
future attempts to gain control of the Company. The board of directors also has
sole authority to determine the terms of any one or more series of preferred
stock, including voting rights, conversion rates, and liquidation preferences.
As a result of the ability to fix voting rights for a series of preferred stock,
the board has the power, to the extent consistent with its fiduciary duty, to
issue a series of preferred stock to persons friendly to management in order to
attempt to block a post tender offer merger or other transaction by which a
third party seeks control, and thereby assist management to retain its position.
Procedures for Certain Business Combinations. The certificate of
incorporation requires that unless certain fair price provisions are met,
business combinations with any interested stockholder must be approved by the
affirmative vote of the holders of not less than 80% of the outstanding stock of
the Company not beneficially owned by the interested stockholder, or the
business combination must be approved by the continuing directors of the Company
and then by the Company's stockholders. Any amendment to this provision requires
the affirmative vote of at least 80% of the shares of the Company entitled to
vote generally in an election of directors.
Amendment to Certificate of Incorporation and Bylaws. Amendments to the
Company's certificate of incorporation must be approved by the Company's board
of directors and also by a majority of the outstanding shares of the Company's
voting stock, provided, however, that approval by at least 80% of the
outstanding voting stock is required for certain provisions (i.e., provisions
relating to restrictions on the acquisition and voting of greater than 10% of
the common stock; number, classification, election and removal of directors;
amendment of bylaws; call of special stockholder meetings; director liability;
certain business combinations; power of indemnification; and amendments to
provisions relating to the foregoing in the certificate of incorporation).
The bylaws may be amended by a two-thirds vote of the board of
directors or the affirmative vote of the holders of at least 80% of the
outstanding shares of the Company entitled to vote in the election of directors,
cast at a meeting called for that purpose.
Benefit Plans. In addition to the provisions of the Company's
certificates of incorporation and bylaws described above, certain of our benefit
plans adopted in connection with the conversion contain provisions which may
also discourage hostile takeover attempts which the board of directors might
conclude are not in our best interests in those of or our stockholders. For a
description of the benefit plans and the provisions of such plans relating to
changes in control, see "Management of Peoples Savings Bank -- Proposed Future
Stock Benefit Plans."
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<PAGE>
Regulatory Restrictions. A federal regulation prohibits any person
prior to the completion of a conversion from transferring, or entering into any
agreement or understanding to transfer, the legal or beneficial ownership of the
subscription rights issued under a plan of conversion or the stock to be issued
upon the exercise of such rights. This regulation also prohibits any person
prior to the completion of a conversion from offering, or making an announcement
of an offer or intent to make an offer, to purchase such subscription rights or
stock. For three years following conversion, OTS regulations prohibit any
person, without the prior approval of the OTS, from acquiring or making an offer
to acquire more than 10% of the stock of any converted savings institution if
such person is, or after consummation of such acquisition would be, the
beneficial owner of more than 10% of such stock. In the event that any person,
directly or indirectly, violates this regulation, the securities beneficially
owned by such person in excess of 10% shall not be counted as shares entitled to
vote and shall not be voted by any person or counted as voting shares in
connection with any matter submitted to a vote of stockholders.
Federal regulations require that, prior to obtaining control of an
insured institution, a person, other than a company, must give 60 days notice to
the OTS and have received no OTS objection to such acquisition of control, and a
company must apply for and receive OTS approval of the acquisition. Control,
involves a 25% voting stock test, control in any manner of the election of a
majority of the institution's directors, or a determination by the OTS that the
acquiror has the power to direct, or directly or indirectly to exercise a
controlling influence over, the management or policies of the institution.
Acquisition of more than 10% of an institution's voting stock, if the acquiror
also is subject to any one of either "control factors," constitutes a rebuttable
determination of control under the regulations. The determination of control may
be rebutted by submission to the OTS, prior to the acquisition of stock or the
occurrence of any other circumstances giving rise to such determination, of a
statement setting forth facts and circumstances which would support a finding
that no control relationship will exist and containing certain undertakings. The
regulations provide that persons or companies which acquire beneficial ownership
exceeding 10% or more of any class of a savings association's stock after the
effective date of the regulations must file with the OTS a certification that
the holder is not in control of such institution, is not subject to a rebuttable
determination of control and will take no action which would result in a
determination or rebuttable determination of control without prior notice to or
approval of the OTS, as applicable.
DESCRIPTION OF CAPITAL STOCK
The Company is authorized to issue 5,000,000 shares of common stock,
$0.10 par value per share, and 1,000,000 shares of serial preferred stock, $0.10
par value per share. The Company currently expects to issue up to 548,838 shares
of common stock in the conversion. The Company does not intend to issue any
shares of serial preferred stock in the conversion, nor are there any present
plans to issue such preferred stock following the conversion. The aggregate par
value of the issued shares will constitute the capital account of the Company.
The balance of the purchase price will be recorded for accounting purposes as
additional paid-in capital. See "Capitalization." The capital stock of the
Company will represent nonwithdrawable capital and will not be insured by us,
the FDIC, or any other governmental agency.
Common Stock
Voting Rights. Each share of the common stock will have the same
relative rights and will be identical in all respects with every other share of
the common stock. The holders of the common stock will possess exclusive voting
rights in the Company, except to the extent that shares of serial preferred
stock issued in the future may have voting rights. Each holder of the common
stock will be entitled to
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only one vote for each share held of record on all matters submitted to a vote
of holders of the common stock and holders will not be permitted to cumulate
their votes in the election of the Company's directors.
Liquidation. In the unlikely event of the complete liquidation or
dissolution of the Company, the holders of the common stock will be entitled to
receive all assets of the Company available for distribution in cash or in kind,
after payment or provision for payment of (i) all debts and liabilities of the
Company; (ii) any accrued dividend claims; and (iii) liquidation preferences of
any serial preferred stock which may be issued in the future.
Restrictions on Acquisition of the Common Stock. See "Restrictions on
Acquisition of Farnsworth Bancorp, Inc." for a discussion of the limitations on
acquisition of shares of the common stock.
Other Characteristics. Holders of the common stock will not have
preemptive rights with respect to any additional shares of the common stock
which may be issued. Accordingly, the board of directors may sell shares of
capital stock of the Company without first offering such shares to existing
stockholders of the Company. The common stock is not subject to call for
redemption, and the outstanding shares of common stock when issued and upon
receipt by the Company of the full purchase price therefor, will be fully paid
and non-assessable.
Issuance of Additional Shares. Except in the offering and possibly
pursuant to the RSP or Option Plan, the Company has no present plans, proposals,
arrangements or understandings to issue additional authorized shares of the
common stock. In the future, the authorized but unissued and unreserved shares
of the common stock will be available for general corporate purposes, including,
but not limited to, possible issuance: (i) as stock dividends; (ii) in
connection with mergers or acquisitions; (iii) under a cash dividend
reinvestment or stock purchase plan; (iv) in a public or private offering; or
(v) under employee benefit plans. See "Risk Factors -- Possible Dilutive Effect
of RSP and Stock Options" and "Pro Forma Data." Normally no stockholder approval
would be required for the issuance of these shares, except as described herein
or as otherwise required to approve a transaction in which additional authorized
shares of the common stock are to be issued.
For additional information, see "Dividends," "Regulation" and
"Taxation" with respect to restrictions on the payment of cash dividends; "The
Conversion -- Restrictions on Sales and Purchases of Shares by Directors and
Officers" relating to certain restrictions on the transferability of shares
purchased by directors and officers; and "Restrictions on Acquisitions of
Farnsworth Bancorp, Inc." for information regarding restrictions on acquiring
common stock of the Company.
Serial Preferred Stock
None of the 1,000,000 authorized shares of serial preferred stock of
the Company will be issued in the conversion. After the conversion is completed,
the board of directors of the Company will be authorized to issue serial
preferred stock and to fix and state voting powers, designations, preferences or
other special rights of such shares and the qualifications, limitations and
restrictions thereof, subject to regulatory approval, but without stockholder
approval. If and when issued, the serial preferred stock is likely to rank prior
to the common stock as to dividend rights, liquidation preferences, or both, and
may have full or limited voting rights. The board of directors, without
stockholder approval, can issue serial preferred stock with voting and
conversion rights which could adversely affect the voting power of the holders
of the common stock. The board of directors has no present intention to issue
any of the serial preferred stock.
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<PAGE>
LEGAL AND TAX MATTERS
The legality of the common stock has been passed upon for us by
Malizia, Spidi, Sloane & Fisch, P.C., Washington, D.C. Certain legal matters for
Ryan, Beck & Co. may be passed upon by Luse Lehman Gorman Pomerenk & Schick,
P.C., Washington, DC. The federal income tax consequences of the conversion have
been passed upon for us by Malizia, Spidi, Sloane & Fisch, P.C., Washington,
D.C. The New Jersey income tax consequences of the conversion have been passed
upon for us by ^ Lewis W. Parker, III, independent certified public accountant.
EXPERTS
The financial statements of Peoples Savings Bank as of and for the
years ended September 30, 1997 and 1996, appearing in this document have been
audited by Lewis W. Parker, III, independent certified public ^ accountant, as
set forth in ^ his report which appears elsewhere in this document, and is
included in reliance upon such report given upon the authority of such ^ person
as ^ an expert in accounting and auditing.
FinPro, Inc. has consented to the publication herein of a summary of
its letters to Peoples Savings Bank setting forth its opinion as to our
estimated pro forma market value in converted form and its opinion setting forth
the value of subscription rights. It has also consented to the use of its name
and statements with respect to it appearing in this document.
REGISTRATION REQUIREMENTS
The common stock of the Company is registered pursuant to Section 12(g)
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
Company will be subject to the information, proxy solicitation, insider trading
restrictions, tender offer rules, periodic reporting and other requirements of
the SEC under the Exchange Act. The Company may not deregister the common stock
under the Exchange Act for a period of at least three years following the
conversion.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
The Company is subject to the informational requirements of the
Exchange Act and must file reports and other information with the SEC.
The Company has filed with the SEC a registration statement on Form
SB-2 under the Securities Act of 1933, as amended, with respect to the common
stock offered in this document. As permitted by the rules and regulations of the
SEC, this document does not contain all the information set forth in the
registration statement. Such information can be examined without charge at the
public reference facilities of the SEC located at 450 Fifth Street, N.W.,
Washington, D.C. 20549, and copies of such material can be obtained from the SEC
at prescribed rates. The SEC also maintains an internet address ("Web site")
that contains reports, proxy and information statements and other information
regarding registrants, including the Company, that file electronically with the
SEC. The address for this Web site is "http://www.sec.gov". The statements
contained in this document as to the contents of any contract or other document
filed as an exhibit to the Form SB-2 are, of necessity, brief descriptions and
are not necessarily complete^.
84
<PAGE>
Peoples Savings Bank has filed an Application for Conversion with the
OTS with respect to the conversion. Pursuant to the rules and regulations of the
OTS, this document omits certain information contained in that Application. The
Application may be examined at the principal office of the OTS at 1700 G Street,
N.W., Washington, D.C. 20552 and at the Northeast Regional Office of the OTS, 10
Exchange Place, 18th Floor, Jersey City, New Jersey 07302.
A copy of the certificates of incorporation and the bylaws of the
Company are available without charge from the Company.
85
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Peoples Savings Bank
Index to Financial Statements
Page
----
Independent Auditors' Report........................................... F-1
Statements of Financial Condition...................................... F-2
Statements of Income................................................... ^ 40
Statements of Retained Earnings........................................ F-3
Statements of Cash Flows............................................... F-4
Notes to Financial Statements.......................................... F-5
All schedules are omitted because the required information is either not
applicable or is included in the financial statements or related notes.
Separate financial statements for the Company have not been included since it
will not engage in material transactions until after the conversion. The
Company, which has been inactive to date, has no significant assets,
liabilities, revenues, expenses or contingent liabilities.
86
<PAGE>
To the Board of Directors
Peoples Savings Bank
INDEPENDENT AUDITOR'S REPORT
----------------------------
I have audited the accompanying statements of financial condition of Peoples
Savings Bank as of September 30, 1997 and 1996, and the related statements of
income, retained earnings and cash flows for the years then ended. These
financial statements are the responsibility of the Bank's management. My
responsibility is to express an opinion on these financial statements based on
my audits.
I conducted my audits in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
I believe that my audits provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly , in
all material respects, the financial position of Peoples Savings Bank at
September 30, 1997 and 1996, and the results of its operations and cash flows
for the years then ended in conformity with generally accepted accounting
principles.
/s/Lewis W. Parker, III
- -----------------------
October 29, 1997
Except for Note 19
as to which the date is
June 10, 1998
F-1
<PAGE>
PEOPLES SAVINGS BANK
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
September 30,
March 31, -------------------------------------
ASSETS 1998 1997 1996
------ ----------- ----------- -----------
(Unaudited)
<S> <C> <C> <C>
Cash and due from banks $ 474,699 $ 1,282,390 $ 121,898
Interest bearing deposits with banks 2,449,766 1,082,151 361,404
Securities available for sale 128,278 95,992 65,995
Securities held to maturity 2,758,440 3,755,516 5,400,707
Mortgage backed and related securities
held to maturity 2,539,703 3,016,352 2,780,512
Loans receivable, net 28,280,451 26,408,713 23,261,013
Accrued interest receivable 237,569 247,263 257,344
Federal Home Loan Bank of New York stock
at cost substantially restricted 261,300 234,100 234,100
Premises and equipment 1,466,145 1,463,866 1,499,991
Foreclosed real estate -- -- 297,690
Other assets 88,757 32,263 81,542
----------- ----------- -----------
Total assets $38,685,108 $37,618,606 $34,362,196
=========== =========== ===========
LIABILITIES AND RETAINED EARNINGS
---------------------------------
Deposits $36,088,181 $35,196,576 $29,569,883
Advances by borrowers for taxes and
insurance 164,684 157,843 151,907
Accrued income taxes 120,121 84,594 8,526
Accrued interest payable 53,762 50,789 71,271
Accounts payable and other accrued
expenses 25,041 40,313 246,696
Federal Home Loan Bank advances -- -- 2,435,291
----------- ----------- -----------
Total liabilities 36,459,792 35,530,115 32,483,574
----------- ----------- -----------
Commitments and contingencies -- -- --
----------- ----------- -----------
Retained earnings:
Substantially restricted 2,142,856 2,029,176 1,837,269
Net unrealized appreciation on available
for sale securities net of taxes 82,460 59,315 41,353
----------- ----------- -----------
Total retained earnings 2,225,316 2,088,491 1,878,622
----------- ----------- -----------
Total liabilities and retained
earnings $38,685,108 $37,618,606 $34,362,196
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
F-2
<PAGE>
PEOPLES SAVINGS BANK
STATEMENTS OF RETAINED EARNINGS
For the Six Months Ended March 31, 1998 (Unaudited)
and the Years Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
Net Unrealized
Appreciation
on Securities Total
Retained Available for Retained
Earnings Sale, Net of Tax Earnings
-------- ---------------- --------
<S> <C> <C> <C>
Balance at September 30, 1995 $1,857,388 $ 24,675 $1,882,063
Net income (20,119) -- (20,119)
Change in unrealized appreciation
on securities available for
sale, net of tax -- 16,678 16,678
---------- ---------------- ----------
Balance at September 30, 1996 1,837,269 41,353 1,878,622
Net income 191,907 -- 191,907
Change in unrealized appreciation
on securities available for
sale, net of tax -- 17,962 17,962
---------- ---------------- ----------
Balance at September 30, 1997
(unaudited) 2,029,176 59,315 2,088,491
Net income (unaudited) 113,680 -- 113,680
Change in unrealized appreciation
on securities available for
sale, net of tax (unaudited) -- 23,145 23,145
---------- ---------------- ----------
Balance at March 31, 1998
(unaudited) $2,142,856 $ 82,460 $2,225,316
========== ================ ==========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
F-3
<PAGE>
PEOPLES SAVINGS BANK
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, September 30,
1998 1997 1997 1996
----------- ----------- ----------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 113,680 $ 61,849 $ 191,907 $ (20,119)
----------- ----------- ----------- -----------
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 27,159 25,576 57,264 53,107
Provision for loan losses 59,000 4,000 8,000 12,500
Net (gain) loss on sale of assets (933) -- 5,220 1,290
Decrease (increase) in accrued
interest receivable 9,694 4,179 10,081 (2,722)
Decrease (increase) in prepaid
expenses and other assets (56,494) 32,088 49,279 (34,248)
Increase (decrease) in advances
from borrowers 6,841 (13,426) 5,936 27,673
Increase (decrease) in accrued
income taxes 43,530 7,065 76,068 (84,040)
Increase (decrease) in accrued
interest payable 2,973 (1,258) (20,482) (22,261)
Increase (decrease) in other
accrued liabilities (15,272) (191,338) (206,383) 123,260
----------- ----------- ----------- -----------
Total adjustments 76,498 (133,114) (15,017) 74,559
----------- ----------- ----------- -----------
Net cash provided by
operations 190,178 (71,265) 176,890 54,440
----------- ----------- ----------- -----------
Cash flows from investing
activities:
Net increase in interest-bearing
deposits with banks (1,367,615) (3,930,003) (720,747) (361,404)
Net increase in loans receivable (1,930,738) (1,189,392) (3,155,700) (2,646,765)
Redemption of securities, to be held
to maturity 1,464,384 1,150,000 2,650,000 500,000
Purchase of securities, to be held to
maturity -- (340,555) (1,265,606) (2,687,347)
Purchase of securities, available
for sale (996,875) -- (1,215,742) (1,000,000)
Proceeds from sale of securities,
available for sale 997,808 -- 1,219,685 4,500,625
Purchase of Federal Home Loan Bank
stock (27,000) -- -- (78,800)
Proceeds from sale of real estate
owned -- 168,378 297,690 --
Purchase of premises and equipment (29,438) 5,590 (17,380) (47,527)
----------- ----------- ----------- -----------
Net cash provided by (used in)
investing activities (1,889,474) (4,135,982) (2,207,800) (1,821,218)
----------- ----------- ----------- -----------
Cash flows from financing activities:
Increase (decrease) in savings
accounts and demand deposits 891,605 5,367,887 3,074,729 (109,197)
Net increase (decrease) in
certificates of deposit -- -- 2,551,964 (1,642,550)
Federal Home Loan Bank Advance
(repayment) -- (935,291) (2,435,291) 2,435,291
----------- ----------- ----------- -----------
Net cash provided by
financing activities 891,605 4,432,596 3,191,402 683,544
----------- ----------- ----------- -----------
Net increase (decrease) in cash
and due from banks (807,691) 225,349 1,160,492 (1,083,234)
Cash at beginning of period 1,282,390 131,898 121,898 1,205,132
----------- ----------- ----------- -----------
Cash at end of period $ 474,699 $ 357,247 $ 1,282,390 $ 121,898
=========== =========== =========== ===========
Supplemental disclosure:
Cash paid during the period for:
Interest $ 694,520 $ 389,109 $ 1,429,565 $ 1,244,183
=========== =========== =========== ===========
Income taxes $ 6,500 $ 45,255 $ 2,055 $ 45,295
=========== =========== =========== ===========
Loans receivable transferred to
foreclosed real estate $ -- $ -- $ -- $ 164,794
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
F-4
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
------------------------------------------
Basis of Financial Statement Presentation
-----------------------------------------
The financial statements have been prepared in conformity with generally
accepted accounting principles. In preparing the financial statements,
management is required to make estimates and assumptions that affect the
reported amount of assets and liabilities as of the date of the balance
sheet and revenues and expenses for the period then ended. Actual results
could differ significantly from those estimates. Material estimates that
are particularly susceptible to significant changes in the near term
relate to the determination of the allowance for loan losses, the
valuation of foreclosed real estate and the assessment of prepayment risks
associated with mortgage-backed securities. Management believes that the
allowance for loan losses is adequate, foreclosed real estate is
appropriately valued and prepayment risks associated with mortgage-backed
securities are properly recognized. While management uses available
information to recognize losses on loans and foreclosed real estate,
future additions to the allowance for loan losses or further writedowns of
foreclosed real estate may be necessary based on changes in economic
conditions in the market area. Additionally, assessments of prepayment
risks related to mortgage-backed securities are based upon current market
conditions, which are subject to frequent change.
In addition, various regulatory agencies, as an integral part of their
examination process, periodically review the Bank's allowance for loan
losses and foreclosed real estate. Such agencies may require the Bank to
recognize additions to the allowance for loan losses or additional
writedowns on foreclosed real estate based on their judgements about
information available to them at the time of their examination.
The unaudited interim financial statements, as of and for the six months
ended March 31, 1998 and 1997, reflect all adjustments (consisting of only
normal reoccurring accruals) which, in the opinion of management, are
necessary to present fairly the results for the interim periods. Results
of interim periods are not necessarily indicative of results to be
expected for the full year.
Concentration of Risk
---------------------
The Bank's lending and real estate activity is concentrated in real estate
and loans secured by real estate located in the State of New Jersey. The
Bank's loan portfolio is predominantly made up of 1 to 4 family unit first
mortgage loans in Burlington County. These loans are typically secured by
first lien positions on the respective real estate properties and are
subject to the Bank's loan underwriting policies. In general, the Bank's
loan portfolio performance is dependent upon the local economic
conditions.
Interest-rate Risk
------------------
The Bank is principally engaged in the business of attracting deposits
from the general public and using these deposits to make loans secured by
real estate and, to a lesser extent, consumer loans and to purchase
mortgage-backed and investment securities. The potential for interest-rate
risk exists as a result of the shorter duration of the Bank's
interest-sensitive liabilities compared to the generally longer duration
of interest-sensitive assets. In a rising interest rate environment,
liabilities will reprice faster than assets, thereby reducing the market
value of long-term assets and net interest income. For this reason,
management regularly monitors the maturity structure of the Bank's assets
and liabilities in order to measure its level of interest-rate risk and to
plan for future volatility.
Cash Equivalents
----------------
For the purpose of presentation in the statements of cash flows, cash and
cash equivalents are defined as those amounts included in the
balance-sheet caption "cash and due from banks."
F-5
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
1. Summary of Significant Accounting Policies (Continued)
------------------------------------------
Investment and Mortgaged-backed Securities
------------------------------------------
The Financial Accounting Standards Board (FASB) issued Statement of
Financial Accounting Standards (SFAS) No. 115 "Accounting for Certain
Investments in Debt and Equity Securities" which is effective for years
beginning after December 15, 1993. This statement requires that
investments in debt and equity securities owned shall be classified into
one of three categories: held-to-maturity, available-for-sale, or trading.
the Bank's investments in securities are classified in two categories and
accounted for as follows:
o Securities Held to Maturity. Bond,s notes and debentures for which the
Bank has the positive intent and ability to hold to maturity are
reported at cost, adjusted for amortization of premiums and accretion
of discounts which are recognized in interest income using the interest
method over the period to maturity.
o Securities Available for Sale. Securities available for sale consist of
certain debt and equity securities not classified as trading or
securities to be held to maturity.
Declines in the fair value of individual held to maturity and available
for sale securities below their cost that are other than temporary will
result in write-downs of the individual securities to their fair value.
The related write-downs will be included in earnings as realized losses.
Unrealized holding gains and losses, net of tax, on securities available
for sale are reported as a net amount in a separate component of equity
until realized.
Gains and losses on the sale of securities available for sale are
determined using the specific-identification method.
Premiums and discounts are recognized in interest income using the
interest method over the period to maturity.
Loans Receivable
----------------
Loans receivable that management has the intent and ability to hold until
maturity or pay-off are reported at their outstanding principal adjusted
for any charge-offs, the allowance for loan losses, and any deferred fees
or costs on originated loans and unamortized premiums or discounts on
purchased loans.
Discounts and premiums on purchased residential real estate loans are
amortized to income using the interest method over the remaining period to
contractual maturity, adjusted for anticipated prepayments. Discounts and
premiums on purchased consumer loans are recognized over the expected
lives of the loans using the interest method.
Loan origination fees and certain direct origination costs are capitalized
and recognized as an adjustment of the yield over the contractual life of
the loan.
Effective October 1, 1995, the Savings Bank adopted FASB Statements No.
114, "Accounting by Creditors for Impairment of a Loan," and No. 118,
"Accounting by Creditors for Impairment of a Loan - Income Recognition and
Disclosures." The provisions of these statements are applicable to all
loans, uncollateralized as well as collateralized, except large groups of
smaller- balance homogeneous loans that are collectively evaluated for
impairment and loans that are measured at fair value or at the lower of
cost or fair value. Loans classified as impaired are to be measured based
on the present value
F-6
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
1. Summary of Significant Accounting Policies (Continued)
------------------------------------------
Loans Receivable (Continued)
----------------
of expected future cash flows discounted at the loan's effective interest
rate, or as a practical expedient, at the loan's observable market price
or the fair value of the collateral if the loan is collateral dependent. A
loan evaluated for impairment is deemed to be impaired when based on
current information and events, it is probable that the Savings Bank will
be unable to collect all amounts due according to the contractual terms of
the loan agreement. All loans identified as impaired are evaluated
independently. No loans were identified as impaired as of September 30,
1997 and 1996, respectively.
The allowance for loan losses is increased by charges to income and
decreased by charge-offs (net of recoveries). Management's periodic
evaluation of the adequacy of the allowance is based on the Bank's past
loan loss experience, known and inherent risks in the portfolio, adverse
situations that may affect the borrower's ability to repay, the estimated
value of any underlying collateral, and current economic conditions.
The accrual of interest on impaired loans is discontinued when, in
management's opinion, the borrower may be unable to meet payments as they
become due. When interest accrual is discontinued, all unpaid accrued
interest is reversed. Interest income is subsequently recognized only to
the extent cash payments are received.
Premises and Equipment
----------------------
Land is carried at cost. Bank premises and equipment are carried at cost
less accumulated depreciation and amortization. Significant renovations
and additions are capitalized. When assets are retired or otherwise
disposed of, the cost and related accumulated depreciation are removed
from the accounts and any resulting gain or loss is reflected in income
for the period. The cost of maintenance and repairs is charged to expense
as incurred. The Bank computes depreciation on a straight-line basis over
the estimated useful lives of the assets.
Foreclosed Real Estate
----------------------
Real estate properties acquired through, or in lieu of, loan foreclosure
are initially recorded at the lower of cost or fair value at the date of
foreclosure. Costs relating to development and improvement of property are
capitalized, whereas costs relating to the holding of property are
expensed. Valuations are periodically performed by management, and an
allowance for losses is established by a charge to operations if the
carrying value of a property exceeds its fair value less estimated selling
cost. Gains and losses from sale of these properties are recognized as
they occur. Income from operating properties is recorded in operations as
earned.
Income Taxes
------------
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective
tax bases. Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The effect
on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date of any
law change.
Deferred income taxes are recognized for differences in the time of
recording significant items of income and expense in the financial
accounting records and their inclusion in or deduction from taxable
income.
F-7
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
1. Summary of Significant Accounting Policies (Continued)
------------------------------------------
Reclassification
----------------
Certain amounts for the year ended September 30, 1996, have been
reclassified to conform with the current period's presentation.
2. Investment Securities
---------------------
The carrying amounts and fair values of investments in securities at March
31, 1998 and September 30, 1997 and 1996 are summarized as follows:
<TABLE>
<CAPTION>
March 31, 1998
-------------------------------------------------------
Gross Unrealized
Amortized ------------------------
Cost Gains Losses Fair Value
---- ----- ------ ----------
(Unaudited)
<S> <C> <C> <C> <C>
Held to maturity:
U.S. Government and agency
securities $ 2,659,255 $ -- $ 47,391 $ 2,611,864
Municipal securities 99,185 12,519 -- 111,704
----------- ---------- ---------- -----------
$ 2,758,440 $ 12,519 $ 47,391 $ 2,723,568
=========== ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
September 30, 1997
-------------------------------------------------------
Gross Unrealized
Amortized -------------------------
Cost Gains Losses Fair Value
---- ----- ------ ----------
<S> <C> <C> <C> <C>
Held to maturity:
U.S. Government and agency
securities $ 3,656,359 $ -- $ 105,428 $3,550,931
Municipal securities 99,157 11,714 -- 110,871
----------- ---------- ---------- ----------
$ 3,755,516 $ 11,714 $ 105,428 $3,661,802
=========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
September 30, 1996
-----------------------------------------------------
Gross Unrealized
Amortized -------------------------
Cost Gains Losses Fair Value
---- ----- ------ ----------
<S> <C> <C> <C> <C>
Held to maturity:
U.S. Government and agency
securities $ 5,301,663 $ -- $ 217,216 $5,084,447
Municipal securities 99,044 6,811 -- 105,855
----------- ---------- ---------- ----------
$ 5,400,707 $ 6,811 $ 217,216 $5,190,302
=========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
March 31, 1998
------------------------------------------------------
(Unaudited)
<S> <C> <C> <C> <C>
Available for sale securities:
Equity securities $ 3,339 $ 124,939 $ -- $ 128,278
=========== ========== ========== ==========
September 30, 1997
-------------------------------------------------------
Available for sale securities:
Equity securities $ 3,339 $ 92,653 $ -- $ 95,992
=========== ========== ========== ==========
September 30, 1996
-------------------------------------------------------
Available for sale securities:
Equity securities $ 3,339 $ 62,616 $ -- $ 65,955
=========== ========== ========== ==========
</TABLE>
The schedule of maturities of securities to be held-to-maturity at March
31, 1998 (unaudited), were as follows:
<TABLE>
<CAPTION>
Held-to-Maturity
Securities
------------------------------------
Amortized Fair
Cost Value
---- -----
<S> <C> <C>
Due in one year or less $ -- $ --
Due from one to five years 747,583 773,603
Due from five to ten years 1,411,672 1,339,041
Due after ten years 599,186 610,925
---------- ----------
$2,758,441 $2,723,569
========== ==========
</TABLE>
F-8
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
3. Mortgage Backed Securities, Held to Maturity
--------------------------------------------
Investments in mortgage-backed and related securities are stated at cost,
adjusted for amortization of premiums and accretion of fees and discounts.
The Bank has adequate liquidity and capital, and it is generally
management's intention to hold such assets to maturity.
The carrying values and fair values of mortgage-backed and related
securities are summarized as follows:
<TABLE>
<CAPTION>
March 31, 1998
-----------------------------------------------------------------------------
Principal Unamortized Unearned Carrying
Balance Premiums Discounts Value
------- -------- --------- -----
(Unaudited)
<S> <C> <C> <C> <C>
GNMA Certificates $ 892,996 $ 13,886 $ -- $ 906,882
FHLMC and FNMA
Certificates 1,642,468 -- 9,647 1,632,821
---------- ----------- --------- ----------
$2,535,464 $ 13,886 $ 9,647 $2,539,703
========== =========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
March 31, 1998
-----------------------------------------------------------------------------
Carrying Gross Unrealized
Value Gains Losses Value
----- ----- ------ -----
(Unaudited)
<S> <C> <C> <C> <C>
GNMA Certificates $ 906,882 $ 9,627 $ -- $ 916,509
FHLMC and FNMA
Certificates 1,632,821 3,636 -- 1,636,457
---------- ----------- --------- ----------
$2,539,703 $ 13,263 $ -- $2,552,966
========== =========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
September 30, 1997
-----------------------------------------------------------------------------
Principal Unamortized Unearned Carrying
Balance Premiums Discounts Value
------- -------- --------- -----
<S> <C> <C> <C> <C>
GNMA Certificates $ 991,502 $ 15,221 $ -- $1,006,723
FHLMC and FNMA
Certificates 2,020,626 -- 10,997 2,009,629
---------- ----------- --------- ----------
$3,012,128 $ 15,221 $ 10,997 $3,016,352
========== =========== ========= ==========
September 30, 1997
-----------------------------------------------------------------------------
Carrying Gross Unrealized
Value Gains Losses Value
----- ----- ------ -----
<S> <C> <C> <C> <C>
GNMA Certificates $1,006,723 $ 15,047 $ -- $1,021,770
FHLMC and FNMA
Certificates 2,009,629 -- 3,563 2,006,066
---------- ----------- --------- ----------
$3,016,352 $ 15,047 $ 3,563 $3,027,836
========== =========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
September 30, 1996
-----------------------------------------------------------------------------
Principal Unamortized Unearned Carrying
Balance Premiums Discounts Value
------- -------- --------- -----
<S> <C> <C> <C> <C>
GNMA Certificates $1,174,580 $ 20,038 $ -- $1,194,618
FHLMC and FNMA
Certificates 1,593,165 -- 2,271 1,585,894
---------- ----------- --------- ----------
$2,767,745 $ 20,038 $ 2,271 $2,780,512
========== =========== ========= ==========
September 30, 1996
-----------------------------------------------------------------------------
Carrying Gross Unrealized
Value Gains Losses Value
----- ----- ------ -----
GNMA Certificates $1,194,618 $ -- $ 8,818 $1,185,800
FHLMC and FNMA
Certificates 1,585,894 -- 49,308 1,536,586
---------- ----------- --------- ----------
$2,780,512 $ -- $ 58,126 $2,722,386
========== =========== ========= ==========
</TABLE>
F-9
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
3. Mortgage Backed Securities, Held to Maturity (Continued)
--------------------------------------------
Securities with a face value and fair value of $619,296 (unaudited),
$944,928 and $802,652, respectively are pledged as security for deposits
of governmental entities under the provisions of Governmental Unit Deposit
Protection Act (GUDPA) as of March 31, 1998, September 30, 1997 and 1996.
4. Accrued Interest Receivable
Accrued interest receivable is summarized as follows:
<TABLE>
<CAPTION>
September 30,
March 31, --------------------------------
1998 1997 1996
---- ---- ----
(Unaudited)
<S> <C> <C> <C>
Loans receivable $ 195,493 $ 185,970 $ 164,013
Mortgage backed securities 13,395 15,996 14,201
Investments 28,681 45,297 79,130
---------- ----------- -----------
$ 237,569 $ 247,263 $ 257,344
========== =========== ===========
</TABLE>
5. Loans Receivable
----------------
Loans receivable at March 31, 1998, September 30, are summarized as
follows:
<TABLE>
<CAPTION>
September 30,
March 31, --------------------------------
1998 1997 1996
---- ---- ----
(Unaudited)
<S> <C> <C> <C>
First mortgage loans Principal balance:
Secured by one to four
family residence $21,578,479 $20,220,605 $19,107,731
Construction loans 2,331,561 2,842,410 1,840,300
Commercial real estate 1,234,199 1,143,688 541,065
----------- ----------- -----------
25,144,239 24,206,703 21,489,096
Less:
Loans in process (292,727) (894,743) (1,137,037)
Unearned discounts (12,466) (12,466) (12,466)
Deferred loan origination
fees net of costs of
($79,736, $64,643 and
$57,153) (150,409) (141,171) (140,715)
----------- ----------- -----------
Total first mortgage
loans 24,688,637 23,158,323 20,198,878
----------- ----------- -----------
Consumer and other loans Principal balances:
Home equity 3,223,707 3,003,459 2,860,795
Personal loans 86,402 48,939 7,918
Loans secured by savings 230,558 246,442 197,422
Commercial line of credit 176,147 17,550 54,000
----------- ----------- -----------
Total consumer and other
loans 3,716,814 3,316,390 3,120,135
----------- ----------- -----------
Total Loans 28,405,451 26,474,713 23,319,013
Less allowance for loan losses:
General valuation allowance (125,000) (66,000) (58,000)
----------- ----------- -----------
Total loans receivable $28,280,451 $26,408,713 $23,261,013
=========== =========== ===========
</TABLE>
F-10
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
5. Loans Receivable (Continued)
----------------
At March 31, 1998 and September 30, 1997 and 1996, nonaccrual loans for
which interest had been discontinued totalled approximately $201,000
(unaudited), $126,512 and $-0-, respectively. Interest income actually
recognized is summarized as follows:
<TABLE>
<CAPTION>
September 30,
March 31, --------------------------------
1998 1997 1996
---- ---- ----
(Unaudited)
<S> <C> <C> <C>
Interest income that would
have been recorded $ 7,707 $ 9,478 $ --
Interest income recognized -- 4,677 --
---------- ----------- --------
Interest income foregone $ 7,707 $ 4,801 $ --
========== =========== ========
</TABLE>
An analysis of the change in the allowance for loan losses:
<TABLE>
<CAPTION>
March 31, September 30,
---------------------- -------------------
1998 1997 1997 1996
---------- ---------- ----------- -------
(Unaudited)
<S> <C> <C> <C> <C>
Allowance for loan losses:
General valuation allowance:
Beginning of year $ 66,000 $ 58,000 $ 58,000 $ 45,500
Addition 59,000 4,000 8,000 20,500
Charge offs -- -- -- (8,000)
---------- ---------- ----------- -----------
End of year $ 125,000 $ 62,000 $ 66,000 $ 58,000
========== ========== =========== ===========
</TABLE>
The activity with respect to loans to directors, officers and associates
of such persons, is summarized as follows:
<TABLE>
<CAPTION>
September 30,
March 31, -------------------------------
1998 1997 1996
---- ---- ----
(Unaudited)
<S> <C> <C> <C>
Beginning of period $ 291,218 $ 301,675 $ 276,191
Loans originated -- 25,000 42,055
Collection of principal 71,944 35,457 16,571
---------- ----------- -----------
End of period $ 219,274 $ 291,218 $ 301,675
========== =========== ===========
</TABLE>
All loans are collateralized by deposits and/or real estate.
6. Premises and Equipment
----------------------
Premises and equipment are summarized by major classification as follows:
<TABLE>
<CAPTION>
September 30,
March 31 -------------------------------
1998 1997 1996
---- ---- ----
(Unaudited)
<S> <C> <C> <C>
Land $ 128,262 $ 126,435 $ 126,435
Office building (Bordentown) 1,349,960 1,349,960 1,349,960
Office building (Florence) 38,299 38,299 38,299
Furniture, fixtures and
equipment 312,356 284,745 269,117
---------- ----------- -----------
1,828,877 1,799,439 1,783,811
Less accumulated
depreciation 362,732 335,573 283,820
---------- ----------- -----------
$1,466,145 $ 1,463,866 $ 1,499,991
========== =========== ===========
</TABLE>
F-11
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
6. Premises and Equipment (Continued)
----------------------
Depreciation charged to operations was $27,159 (unaudited) and $25,576
(unaudited) for the six months ended March 31, 1998 and 1997 and $51,753
and $51,688 for the years ended 1997 and 1996, respectively. Useful lives
used in the calculation of depreciation are as follows:
Buildings 25 to 40 years
Building improvements and land improvements 7 to 15 years
Furniture and equipment 5 to 7 years
7. Deposits
--------
Deposits as of September 30, are summarized as follows:
<TABLE>
<CAPTION>
March 31,
1998 1997 1996
----------- -------
Amount Amount Amount
------ ------ ------
(Unaudited)
<S> <C> <C> <C>
NOW accounts $ 4,516,477 $ 3,518,176 $ 2,427,442
Money Market accounts 2,539,829 2,912,054 2,216,550
Passbook and club accounts 7,007,468 5,963,246 5,815,444
Non Interest Bearing 2,549,996 2,933,125 1,792,436
----------- ----------- -----------
Subtotal 16,613,770 15,326,601 12,251,872
----------- ----------- -----------
Certificates of deposit:
0.0% to 3.0% -- -- 2,678
3.01% to 4.0% 529,190 660,029 1,262,520
4.01% to 5.0% 3,657,864 2,278,310 4,635,555
5.01% to 6.0% 14,369,181 15,905,072 9,944,181
6.01% to 7.0% 918,076 1,026,564 1,473,077
----------- ----------- -----------
Total Certificates of
Deposit 19,474,311 19,869,975 17,318,011
----------- ----------- -----------
Total Deposits $36,088,081 $35,196,576 $29,569,883
=========== =========== ===========
</TABLE>
The aggregate amount of jumbo certificates of deposit with a
minimum denomination of $100,000 was approximately $1,695,000
(unaudited), $2,236,764 and $1,265,000 at March 31, 1998,
September 30, 1997 and 1996. These certificates of deposit do not
receive preferential rates of interest. Deposits in excess of
$100,000 are not federally insured.
As of March 31, 1998 (unaudited) and September 30, 1997 and 1996,
scheduled maturities of certificates of deposit (rounded to the
nearest $1,000) are summarized as follows:
<TABLE>
<CAPTION>
September 30,
March 31, -------------------------------------
1998 1997 1996
----------- ----------- ------------
(Unaudited)
<S> <C> <C> <C>
3 months or less $ 4,646,000 $ 4,070,000 $ 3,478,000
3 months to 6 months 4,399,000 5,798,000 4,211,000
6 months to 1 year 6,678,000 5,353,000 5,305,000
1 year to 3 years 2,613,000 4,040,000 4,028,000
3 years to 5 years 1,138,000 609,000 296,000
----------- ----------- -----------
$19,474,000 $19,870,000 $17,318,000
=========== =========== ===========
</TABLE>
F-12
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
7. Deposits (Continued)
--------
Interest expense on deposits for the six months ended March 31, 1998 and
1997 and the years ended September 30, 1997 and 1996 is summarized as
follows:
<TABLE>
<CAPTION>
September 30,
March 31, March 31, ------------------------------
1998 1997 1997 1996
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
NOW accounts $ 48,881 $ 43,809 $ 252,442 $ 73,848
Money market accounts 83,195 75,101 106,291 58,739
Passbook and club accounts 30,246 481,895 225,869 167,370
Certificates of deposit 514,189 25,034 744,038 886,682
----------- ----------- ----------- -----------
$ 676,511 $ 625,839 $ 1,328,640 $ 1,186,639
=========== =========== =========== ===========
</TABLE>
8. Other Borrowed Funds
--------------------
Borrowed funds at March 31 and September 30 are summarized as follows:
<TABLE>
<CAPTION>
March 31, September 30,
----------------------
1998 1997 1996
----------- ----------- -------
(Unaudited)
<S> <C> <C> <C>
Advances from Federal Home
Loan Bank $ -- $ -- $ 1,435,291
Overnight borrowings from
Federal Reserve Bank -- -- 1,000,000
----------- ----------- -----------
$ -- $ -- $ 2,435,291
=========== =========== ===========
</TABLE>
Interest is payable on these advances at rates ranging from 5.54% to 5.86%
with maturities due October and December of 1996. These advances are
collateralized by Federal Home Loan Bank stock, investments in securities
and mortgages. The Association has $9,684,527 (unaudited) and $9,404,651
available for borrowing as of March 31, 1998 and September 30, 1997.
9. Retained Earnings
-----------------
In connection with the insurance of savings accounts the Bank has
maintained general reserves which may be used only for absorbing losses.
These reserves do not reflect amounts of losses actually anticipated and
the appropriations thereto have not been charged against tax income. Such
reserves represent a restriction on retained earnings of the Bank. At
March 31, 1998 (unaudited) and September 30, 1997 and 1996, this reserve
was $306,008.
10. Gains on Sale of Interest Earning Assets
----------------------------------------
Gains are summarized as follows:
<TABLE>
<CAPTION>
September 30,
March 31, --------------------------------
1998 1997 1996
---- ---- ----
(Unaudited)
<S> <C> <C> <C>
Realized gain on sales of:
Available-for-sale securities $ 933 $ 6,977 $ 1,791
========== =========== ===========
</TABLE>
There were no losses realized on the sale of securities during any of
these periods.
F-13
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
11. Income Taxes
------------
The Bank has qualified as a Savings Institution under provisions of the
Internal Revenue Code. Prior to January 1, 1996 the bank was permitted to
deduct from taxable income an allowance for bad debts based on a
percentage- of-taxable-income, the rate was 8% before such deduction.
Retained earnings at March 31, 1998, September 30, 1997 and 1996 included
untaxed earnings of approximately $489,704, $489,704 and $472,905,
representing such bad debt deductions.
On August 21, 1996, legislation was signed into law which repealed the
percentage of taxable income method for tax bad debt deductions. The
repeal is effective for the Bank's taxable year beginning October 1, 1996.
In addition, the legislation requires the Bank to include in taxable
income its bad debt reserves in excess of its base year reserves over a
six, seven, or eight year period depending upon the attainment of certain
loan origination levels. Since the percentage of taxable income method for
federal tax bad debt deductions and the corresponding increase in the
Federal tax bad debt reserve in excess of the base year have been
reflected as temporary differences pursuant to FASB Statement No. 109,
with deferred income taxes recorded thereon, this change in the tax law
did not have a material adverse effect on the Bank's financial position or
operations.
Retained earnings at March 31, 1998 and September 30, 1997 includes
approximately $241,000 of tax bad debt deductions which, in accordance
with FASB Statement No. 109, are considered a permanent difference between
the book and income tax basis of loans receivable, and for which income
taxes have not been provided. If such amount is used for purposes other
than bad debt losses, including distributions in liquidation, it will be
subject to income tax at the then current rate.
The provision for federal and state income taxes differs from that
computed at the statutory graduated rates as follows:
<TABLE>
<CAPTION>
, September 30,
March 31, March 31, --------------------------------
1998 1997 1997 1996
---------- ---------- ----------- -------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Statutory tax rates 31% 29% 34% (34)%
Tax at statutory rates $ 47,645 $ 24,309 $ 94,114 $ (14,300)
Decrease in tax:
Tax exempt income (1,000) (1,000) (2,000) (2,000)
Miscellaneous (8,600) (1,309) (10,774) (5,660)
---------- ---------- ----------- -----------
$ 38,045 $ 22,000 $ 81,340 $ (21,960)
========== ========== =========== ===========
Effective tax rate 25% 26% 30% (52)%
</TABLE>
The tax provision is summarized as follows:
<TABLE>
<CAPTION>
September 30,
March 31, March 31, -------------------------------
1998 1977 1997 1996
---------- ---------- ----------- -------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Current federal $ 42,729 $ (15,382) $ 3,006 $ 31,144
Deferred federal (7,786) 35,619 71,238 (52,074)
Current state 3,964 (1,475) 620 3,570
Deferred state (862) 3,238 6,476 (4,600)
---------- ---------- ----------- -----------
$ 38,045 $ 22,000 $ 81,340 $ (21,960)
========== ========== =========== ===========
</TABLE>
F-14
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
11. Income Taxes (Continued)
------------
The following temporary differences gave rise to deferred tax assets and
liabilities:
<TABLE>
<CAPTION>
March 31, September September
1998 30, 1997 30, 1996
---- -------- --------
(Unaudited)
<S> <C> <C> <C>
Deferred tax assets:
Allowance for loan losses $ 41,875 $ 22,167 $ 19,700
Deferred loan origination
fees, net 33,000 30,920 26,221
Accrued payroll 4,300 8,350 5,700
SAIF assessment -- -- 68,900
---------- ---------- ----------
Total deferred tax
assets 79,175 61,437 120,521
---------- ---------- ----------
Deferred tax liabilities:
Premises and equipment 17,320 17,390 10,800
Unrecorded appreciation on
investments 42,500 33,340 21,300
Tax reserve for loan
losses 91,647 91,647 91,647
---------- ---------- ----------
Total deferred tax
liabilities 151,467 142,377 123,747
---------- ---------- ----------
Net deferred tax asset
(liability) $ (72,292) $ (80,940) $ (3,226)
========== ========== ==========
</TABLE>
12. Commitments & Contingencies
---------------------------
At March 31, 1998 the Bank had the following commitments outstanding.
Mortgage commitments are for 45 days. Home equity commitments are for 60
days. The commitments are summarized as follows:
<TABLE>
<CAPTION>
Amounts Rate Term
------- ---- ----
(Unaudited)
<S> <C> <C> <C>
Mortgages (fixed rate) $ 1,322,500 6.125% to 7.375% 10 to 30 years
Mortgages (construction) 165,000 Prime + 1% or 2% 6 month &
1 points 12 month
Commercial loan 200,000 FHLB + 1.50% 30 years
Home Equity Loan 17,500 Prime + 1.5% to 3 to 15 years
-----------
9.00%
$ 1,705,000
===========
</TABLE>
There are four letters of credit outstanding. An annual fee of 1 point is
due on each of the letters of credit. Interest is due at various rates if
the letters of credit are utilized. The value of all four letters totals
$198,418. The institution also has lines of credit with undrawn balances
of $368,034.
F-15
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
13. Lease Commitments
-----------------
At September 30, 1997, the Bank was obligated under a noncancellable
operating lease for a vehicle. This lease requiring monthly payments of
$432 expired October 15, 1997. A new vehicle lease was signed October 9,
1997. The terms of the new lease are $477 per month for 24 months. Net
rent expense under the operating lease, included in automobile expense,
was approximately $2,862 and $2,592 for the six months ended March 31,
1998 and 1997 and $5,189 and $4,127 for the years ended September 30, 1997
and 1996, respectively. Future minimum lease payments are as follows:
12 Months Ended
March 31 Amount
-------- ------
(Unaudited)
1999 $ 5,724
2000 2,862
-----------
$ 8,586
===========
14. Financial Instruments
---------------------
Off-Balance-Sheet Instruments
-----------------------------
Fair values for off-balance-sheet lending commitments are based on fees
currently charged to enter into similar agreements, taking into account
the remaining terms of the agreements and the counterparties' credit
standings.
Fair Values of Financial Instruments
------------------------------------
The following methods and assumptions were used by the Bank in estimating
fair values of financial instruments as disclosed herein:
Cash and Short-Term Instruments
-------------------------------
The carrying amounts of cash and short-term instruments approximate
their fair value.
Available-for-Sale and Held-to-Maturity Securities
--------------------------------------------------
Fair values for securities, excluding restricted equity securities, are
based on quoted market prices. The carrying values of restricted equity
securities approximate fair values.
Loans Receivable
----------------
For variable-rate loans that reprice frequently and have no significant
change in credit risk, fair values are based on carrying values. Fair
values for certain mortgage loans and other consumer loans are based on
quoted market prices of similar loans sold in conjunction with
securitization transactions, adjusted for differences in loan
characteristics. Fair values for commercial real estate and commercial
loans are estimated using discounted cash flow analyses, using interest
rates currently being offered for loans with similar terms to borrowers
of similar credit quality. Fair values for impaired loans are estimated
using discounted cash flows analyses or underlying collateral values,
where applicable.
F-16
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
14. Financial Instruments (Continued)
---------------------
Fair Values of Financial Instruments (Continued)
------------------------------------
Deposit Liabilities
-------------------
The fair values disclosed for demand deposits are, by definition, equal
to the amount payable on demand at the reporting date. The carrying
amounts of variable-rate, fixed-term money-market accounts and
certificates of deposit (CDs) approximate their fair values at the
reporting date. Fair values for fixed-rate CDs are estimated using a
discounted cash flow calculation that applies interest rates currently
being offered on certificates to a schedule of aggregated expected
monthly maturities on time deposits.
Short-Term Borrowings
---------------------
The carrying amounts of federal funds purchased, and other short-term
borrowings maturing within 90 days approximate their fair values. Fair
values of other short-term borrowings are estimated using discounted
cash flow analyses based on the Bank's current incremental borrowing
rates for similar types of borrowing arrangements.
Long-Term Debt
--------------
The fair values of the Bank's long-term debt are estimated using
discounted cash flow analyses based on the Bank's current incremental
borrowing rates for similar types of borrowing arrangements.
Accrued Interest
----------------
The carrying amounts of accrued interest approximate their fair values.
Other Off-Balance-Sheet Instruments
-----------------------------------
In the ordinary course of business the Bank has entered into
off-balance- sheet financial instruments consisting of commitments to
extend credit AND commercial letters of credit. Such financial
instruments are recorded in the financial statements when they are
funded or related fees are incurred or received.
The Bank is a party to financial instruments with off-balance-sheet risk
in the normal course of business to meet the financing need of its
customers and to reduce its own exposure to fluctuation in interest rates.
These financial instruments include commitments to extend credit.
Commitments to extend credit are agreements to lend to a customer as long
as there is no violation of any condition established in the loan
agreement. These commitments are comprised of the undisbursed portion of
construction loans and residential loan origination. The Bank's exposure
to credit loss from nonperformance by the other party to the financial
instruments for commitments to extend credit is represented by the
contractual amount of those instruments. The Bank uses the same credit
policies in making commitments and conditional obligations as it does for
on-balance-sheet instruments. Generally, collateral, usually in the form
of real estate, is required to support financial instruments with credit
risk.
The Bank's exposure to credit loss in the event of nonperformance by the
other party to the financial statement for commitments to extend credit,
standby letters of credit, and financial guarantees written is represented
by the contractual notional amount of those instruments. The Bank uses the
same credit policies in making commitments and conditional obligations as
it does for on-balance-sheet instruments.
Unless noted otherwise, the Bank does not require collateral or other
security to support financial instruments with credit risk.
F-17
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
14. Financial Instruments (Continued)
---------------------
Commitments to Extend Credit and Financial Guarantees. Commitments to
extend credit are agreements to lend to a customer as long as there is no
violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may
require payment of a fee. Since many of the commitments are expected to
expire without being drawn upon by customers, the total commitment amounts
do not necessarily represent future cash requirements. The Bank evaluates
each customer's credit worthiness on a case-by-case basis. The amount of
collateral obtained, if it is deemed necessary by the Bank upon extension
of credit, is based on management's credit evaluation of the counter
party. Collateral held varies but may include accounts receivable;
inventory, property, plant, and equipment; and income-producing commercial
properties.
Standby letters of credit and financial guarantees written are conditional
commitments issued by the Bank to guarantee the performance of a customer
to a third party. Those guarantees are primarily issued to support public
and private borrowing arrangements, including commercial paper, bond
financing, and similar transactions. The credit risk involved in issuing
letters of credit is essentially the same as that involved in extending
loan facilities to customers. The Bank has not been required to perform on
any financial guarantees during the past two years. The Bank has not
incurred any losses on its commitments in either 1997 or 1996.
The estimated fair values of the Bank's financial instruments were as
follows at: (000's omitted)
<TABLE>
<CAPTION>
March 31, 1998 September 30, 1997 September 30, 1996
------------------- ------------------ ------------------
Carrying Fair Carrying Fair Carrying Fair
Financial Assets Amount Value Amount Value Amount Value
---------------- -------- ------- -------- ------- -------- ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents $ 475 $ 475 $ 1,282 $ 1,282 $ 483 $ 483
Interest bearing deposit 2,450 2,450 1,082 1,082 -- --
Securities held to maturity 5,298 5,277 6,772 6,690 8,181 7,971
Securities available for sale 128 128 96 96 66 66
Loans receivable 28,280 28,670 26,409 26,107 23,261 22,959
Accrued interest receivable 238 238 247 247 257 257
Real estate owned -- -- -- -- 298 298
Financial Liabilities
---------------------
Deposit liabilities 36,088 36,076 35,197 35,170 29,570 29,511
Short-term borrowings -- -- -- -- 2,435 2,435
Commitments to originate loans 1,705 1,705 653 653 1,434 1,434
</TABLE>
15. Pension Plan
------------
During the fiscal year ended September 30, 1996, the Board adopted a
salary reduction thrift plan. The plan covers all employees with 1 year of
service of at least 1,000 hours. The Bank matches elective employee
deferrals at a rate of 50% of the deferral for the first 6% deferred. The
employee may defer another 9% of his salary. Employer contributions were
$3,652 (unaudited) and $5,171 (unaudited) for the six months ended March
31, 1998 and 1997 and $6,767 and $3,672 for 1997 and 1996, respectively.
16. Regulatory Capital Requirement
------------------------------
The Bank is subject to various regulatory capital requirements
administered by the federal banking agencies. Failure to meet minimum
capital requirements can initiate certain mandatory -- and possibly
additional discretionary -- actions by regulators that, if undertaken,
could have a direct material effect on the Bank's financial statements.
Under capital adequacy guidelines and the regulatory framework for prompt
corrective action, the Bank must meet specific capital guidelines that
involve
F-18
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
16. Regulatory Capital Requirement (Continued)
------------------------------
quantitative measures of the Bank's assets, liabilities, and certain off-
balance-sheet items as calculated under regulatory accounting practices.
The Bank's capital amounts and classification are also subject to
qualitative judgments by the regulators about components, risk weightings,
and other factors.
The Office of Thrift Supervision ("OTS") has prescribed capital
requirements which include three separate measurements of capital
adequacy: a leverage- ratio capital standard ("core"), a tangible capital
standard and a risk- based capital standard (collectively known as the
"Capital Rule"). The Capital Rule requires each savings institution to
maintain tangible capital equal to at least 1.5% of its adjusted total
assets and core capital equal to at least 4.0% of its adjusted total
assets. The Capital Rule further requires each savings institution to
maintain total capital equal to at least 8.0% of its risk-weighted assets.
The institution at September 30, 1997 and 1996 meets the regulatory core
capital, tangible capital, and risk based capital requirements as
summarized:
<TABLE>
<CAPTION>
To be Well-
Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes Action Provisions
--------------------- ----------------- ---------------------
Amount Ratio Amount Ratio Amount Ratio
------ ----- ------ ----- ------ -----
(Dollars to Thousands)
<S> <C> <C> <C> <C> <C> <C>
As of September 30, 1996:
Risk-based capital $ 1,896 12.18 $ 1,245 8.00 $ 1,557 10.00
Tier 1 capital 1,838 11.80 N/A N/A 934 6.00
Core capital 1,838 5.35 1,031 3.00 1,718 5.00
Tangible capital 1,838 5.35 807 1.50 N/A N/A
As of September 30, 1997:
Risk-based capital $ 2,095 11.52 1,454 8.00 1,818 10.00
Tier 1 capital 2,029 11.16 N/A N/A 1,091 6.00
Core capital 2,029 5.40 1,127 3.00 1,878 5.00
Tangible capital 2,029 5.40 563 1.50 N/A N/A
As of March 31, 1998:
Risk-based capital $ 2,225 11.65 $ 1,536 8.00 $ 1,920 10.00
Tier 1 capital 2,100 8.84 N/A N/A 1,425 6.00
Core capital 2,100 5.43 1,160 3.00 1,933 5.00
Tangible capital 2,100 5.43 580 1.50 N/A N/A
</TABLE>
A reconciliation of net worth, as reported in the financial statements to
regulatory capital is as follows:
<TABLE>
<CAPTION>
Tangible Core Risk-based
Capital Capital Capital
------- ------- -------
(In Thousands)
<S> <C> <C> <C>
As of September 30, 1996:
GAAP capital per financial
statements $ 1,879 $ 1,879 $ 1,879
Unrealized gain on securities
available for sale (41) (41) (41)
General allowance for loan losses -- -- 58
-------- ------- ----------
Total regulatory capital 1,838 1,838 1,896
Minimum required capital 515 1,031 1,245
-------- ------- ----------
Excess regulatory capital $ 1,323 $ 807 $ 651
======== ======= ==========
</TABLE>
F-19
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
16. Regulatory Capital Requirement (Continued)
------------------------------
<TABLE>
<CAPTION>
Tangible Core Risk-based
Capital Capital Capital
------- ------- -------
(In Thousands)
<S> <C> <C> <C>
As of September 30, 1997:
GAAP capital per financial
statements $ 2,088 $ 2,088 $ 2,088
Unrealized gain on securities
available for sale (59) (59) (59)
General allowance for loan losses -- -- 66
-------- ------- ----------
Total regulatory capital 2,029 2,029 2,095
Minimum required capital 563 1,127 1,454
-------- ------- ----------
Excess regulatory capital $ 1,466 $ 902 $ 641
======== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
Tangible Core Risk-based
Capital Capital Capital
------- ------- -------
(In Thousands)
<S> <C> <C> <C>
As of March 31, 1998 (unaudited)
GAAP capital per financial
statements $ 2,225 $ 2,225 $ 2,225
Unrealized gain on securities
available for sale (125) (125) (125)
General allowance for loan losses -- -- 125
-------- ------- ----------
Total regulatory capital 2,100 2,100 2,225
Minimum required capital 580 1,160 1,536
-------- ------- ----------
Excess regulatory capital $ 1,520 $ 940 $ 689
======== ======= ==========
</TABLE>
The Federal Deposit Insurance Corporation Improvement Act of 1991
("FDICIA") imposes increased requirements on the operations of financial
institutions and mandated the development of regulations designed to
empower regulators to take prompt corrective action with respect to
institutions that fall below certain capital standards. FDICIA stipulates
that an institution with less than 4% core capital is deemed to be
undercapitalized. Quantitative measures established by FDICIA to ensure
capital adequacy require the Bank to maintain minimum amounts and ratios
of total and Tier I capital (as defined in the regulations) to
risk-weighted assets (as defined), and of Tier I capital to average assets
(as defined). Management believes, as of September 30, 1997, that the Bank
meets all capital adequacy requirements to which it is subject.
As of September 19, 1997, the most recent notification from the OTS, the
Bank was categorized as well capitalized under the regulatory framework
for prompt corrective action. To be categorized as well capitalized, the
Bank must maintain minimum total, risk-based, and Tier I leverage ratios
of 10%, 6%, and 5%, respectively. There are no conditions existing or
events which have occurred since notification that management believes
have changed the institution's category.
Management believes that, under the current regulations, the Bank will
continue to meet its minimum capital requirements in the foreseeable
future. However, events beyond the control of the Bank could adversely
affect its future minimum capital requirements.
F-20
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
17. Special Deposit Insurance Assessment
------------------------------------
On September 30, 1996, congressional legislation was enacted which is
designed to recapitalize the Savings Association Insurance Fund (SAIF) and
to eliminate the substantial deposit premium disparity between Bank
Insurance Fund and SAIF-insured institutions. The legislation imposed a
one-time assessment on all SAIF-insured deposits, as of March 31, 1995.
For the Bank, the assessment totalled $191,615, and is reflected in the
non-interest expenses section of the statement of income for the year
ended September 30, 1996.
Beginning on January 1, 1997, the FDIC has estimated that, in addition to
normal deposit insurance premiums, BFI members will pay a portion of the
FICO payment equal to 1.3 basis points on BIF-insured deposits compared to
6.4 basis points by SAIF members on SAIF-insured deposits. All
institutions will pay a pro-rate share of the FICO payment on the earlier
of January 1, 2000 or the date upon which the last savings association
ceases to exist. The legislation also requires BIF and SAIF to be merged
by January 1, 1999 provided that legislation is adopted to eliminate the
savings association charter and no savings associations remain as of the
time.
The FDIC has recently lowered SAIF assessments to a range comparable to
that of BIF members, although SAIF members must also make the FICO
payments described above. Management cannot predict the precise level of
FDIC insurance assessments on an ongoing basis or whether the BIF and SAIF
will eventually be merged.
18. Bank Charter and Name Change
----------------------------
During 1996, the Bank converted from a state chartered mutual savings and
loan to a federally chartered mutual savings bank after this the bank
changed its name from Peoples Savings Bank, SLA to Peoples Savings Bank.
19. Plan of Conversion and Reorganization (Unaudited)
-------------------------------------------------
On March 2, 1998, the Board of Directors of the Bank adopted a Plan of
Conversion, pursuant to which the bank would be converted from a federal
mutual savings bank to a federally chartered stock savings bank, with the
concurrent formation of a holding company.
The Conversion will be accomplished through adoption of the proposed
Federal Stock Charter and Bylaws to authorize the issuance of capital
stock by the Bank, at which time the Bank will become a wholly-owned
subsidiary of the Holding Company. The Conversion will be accounted for at
historical cost in a manner similar to a pooling of interests. As part of
the Conversion, the Bank is conducting a Subscription Offering of the
Common Stock for holders of subscription rights in the following order of
priority: (i) depositors of the Bank as of December 31, 1996 with deposits
of at least $50 ("Eligible Account Holders"); (ii) tax-qualified employee
benefit plans of the Bank (i.e., an employee stock ownership plan)' (iii)
other depositors of the Bank as of the last day of the calendar quarter
preceding the approval of the plan by OTS with deposits of at least $50
("Supplemental Eligible Account Holders"); and (iv) depositors who are
neither Eligible Account Holders nor Supplemental Eligible Account
Holders.
The Bank may offer shares not subscribed in a Community Offering to the
general public in New Jersey with a preference to natural persons residing
in Burlington County, New Jersey, subject to the prior rights of holders
of subscription rights.
F-21
<PAGE>
PEOPLES SAVINGS BANK
NOTES TO FINANCIAL STATEMENTS
(Continued)
19. Plan of Conversion and Reorganization (Unaudited) (Continued)
-------------------------------------------------
At the time of the conversion, the Bank will establish a Liquidation
Account in an amount equal to its total net worth as of the date of the
latest balance sheet appearing in the final prospectus. The Liquidation
Account will be maintained for the benefit of eligible account holders and
supplemental eligible account holders who continue to maintain their
accounts at the Bank after the conversion. The Liquidation Account will be
reduced annually to the extent that eligible account holders and
supplemental eligible account holders have reduced their qualifying
deposits. Subsequent increases will not restore an eligible account
holder's or supplemental eligible account holder's interest in the
Liquidation Account. In the event of a complete liquidation, each eligible
account holder and supplemental eligible account holder will be entitled
to receive a distribution from the Liquidation Account in the amount
proportionate to the current adjusted qualifying balances for accounts
they held.
Subsequent to the conversion, the Bank may not declare or pay cash
dividends if the effect thereof would cause stockholders' equity to be
reduced below (1) the amount required for the Liquidation Account or (ii)
applicable regulatory capital requirements or if such declaration and
payment would otherwise violate regulatory requirements.
Conversion costs will be deferred and deducted from the proceeds of the
shares sold in the conversion. If the conversion is not completed, all
costs will be charged as an expense. Conversion costs incurred through
June 10, 1998 totalled $53,448.
F-22
<PAGE>
You should rely only on the information contained in this document or that to
which we have referred you. We have not authorized anyone to provide you with
information that is different.This document does not constitute an offer to
sell, or the solicitation of an offer to buy, any of the securities offered
hereby to any person in any jurisdiction in which such offer or solicitation
would be unlawful. The affairs of Peoples Savings Bank or Farnsworth Bancorp,
Inc. may change after the date of this prospectus. Delivery of this document and
the sales of shares made hereunder does not mean otherwise.
Farnsworth Bancorp, Inc.
[LOGO]
Up to ^ 548,838 Shares
(Anticipated Maximum, as adjusted)
Common Stock
----------------------
PROSPECTUS
----------------------
Ryan, Beck & Co.
Dated August __, 1998
THESE SECURITIES ARE NOT DEPOSITS OR ACCOUNTS
AND ARE NOT FEDERALLY INSURED OR GUARANTEED.
Until the later of _______ __, 1998, or 90 days after commencement of the
offering of common stock, all dealers that buy, sell or trade these securities,
whether or not participating in this distribution, may be required to deliver a
prospectus. This is in addition to the obligation of dealers to deliver a
prospectus when acting as underwriters and with respect to their unsold
allotments or subscriptions.
<PAGE>
PART II: INFORMATION NOT REQUIRED IN PROSPECTUS
Item 27. Exhibits:
<TABLE>
<CAPTION>
The exhibits filed as part of this Registration Statement are as follows:
<S> <C>
1 Form of Sales Agency Agreement with Capital Resources, Inc. *
2 Plan of Conversion *
3(i) Certificate of Incorporation of Farnsworth Bancorp, Inc. *
3(ii) Bylaws of Farnsworth Bancorp, Inc. *
5 Opinion of Malizia, Spidi, Sloane & Fisch, P.C. regarding legality of
securities registered *
8.1 Federal Tax Opinion of Malizia, Spidi, Sloane & Fisch, P.C.
8.2 State Tax Opinion of Lewis W. Parker, III *
8.3 Opinion of FinPro, Inc. as to the value of subscription rights *
10.1 Employment Agreement between Peoples Savings Bank and Gary N.
Pelehaty *
10.2 Employment Agreement between Peoples Savings Bank and Charles
Alessi *
10.3 Change in Control Severance Agreement between Peoples Savings Bank
and Elaine Denelsbeck *
23.1 Consent of Malizia, Spidi, Sloane & Fisch, P.C. (contained in its
opinions filed as Exhibits 5 and 8.1) *
23.2 Consent of Lewis W. Parker, III
23.3 Consent of FinPro, Inc. *
23.4 Consent of Lewis W. Parker, III (contained in his opinion filed as
Exhibit 8.2) *
24 Power of Attorney (reference is made to the signature page) *
27 Financial Data Schedule*
99.1 Stock Order Form *
99.2 Marketing Materials *
99.3 Appraisal Report of Finpro, Inc.
</TABLE>
--------------
* Previously filed
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Act of
1933, as amended, 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 registration statement to be signed on its behalf by the
undersigned, in Bordentown, New Jersey, on July 28, 1998.
FARNSWORTH BANCORP, INC.
By: /s/Gary N. Pelehaty
-------------------------------------
Gary N. Pelehaty
President and Chief Executive Officer
(Duly Authorized Representative)
In accordance with the requirements of the Securities Act of
1933, as amended, this registration statement has been signed below by the
following persons in the capacities indicated as of July 28, 1998.
/s/ George G. Aaronson, Jr. * /s/Gary N. Pelehaty
- ----------------------------- -----------------------------------------------
George G. Aaronson, Jr. Gary N. Pelehaty
Director President, Chief Executive Officer and Director
(Principal Executive Officer)
/s/ Charles E. Adams *
- -----------------------------
Charles E. Adams
Director
/s/ Herman Gutstein * /s/ Charles Alessi *
- ----------------------------- -----------------------------------------------
Herman Gutstein Charles Alessi
Chairman of the Board Vice President, Secretary and Treasurer
(Principal Financial and Accounting Officer)
/s/ G. Edward Keonig, Jr. *
- -----------------------------
G. Edward Koenig, Jr.
Director
/s/ Edgar N. Peppler *
- -----------------------------
Edgar N. Peppler
Director
/s/ William H. Wainwright, Jr. *
- -----------------------------
William H. Wainwright, Jr.
Director
- --------------------
* Signed pursuant to a Power of Attorney.
<PAGE>
As filed with the Securities and Exchange Commission on July 28, 1998
Registration No. 333-56689
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
EXHIBITS
TO
PRE-EFFECTIVE AMENDMENT NO. 1
TO
FORM SB-2
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
Farnsworth Bancorp, Inc.
----------------------------------------------
(Name of Small Business Issuer in Its Charter)
New Jersey 6035 22-3591051
- --------------------------------- ----------------- -------------------
(State or Other Jurisdiction (Primary SIC No.) (I.R.S. Employer
of Incorporation or Organization) Identification No.)
789 Farnsworth Avenue, Bordentown, New Jersey 08505
(609) 298-0723
- --------------------------------------------------------------------------------
(Address and Telephone Number of Principal Executive Offices
and Principal Place of Business)
Mr. Gary N. Pelehaty
President and Chief Executive Officer
Farnsworth Bancorp, Inc.
789 Farnsworth Avenue, Bordentown, New Jersey 08505
(609) 298-0723
---------------------------------------------------------
(Name, Address and Telephone Number of Agent for Service)
Please send copies of all communications to:
John J. Spidi, Esq.
Jean A. Milner, Esq.
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
1301 K Street, N.W., Suite 700 East, Washington, D.C. 20005
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
As soon as practicable after this registration statement becomes effective.
<PAGE>
INDEX TO EXHIBITS TO FORM SB-2
Exhibit
- -------
The exhibits filed as part of this Registration Statement are as
follows:
<TABLE>
<CAPTION>
<S> <C>
1 Form of Sales Agency Agreement with Capital Resources, Inc. *
2 Plan of Conversion *
3(i) Certificate of Incorporation of Farnsworth Bancorp, Inc. *
3(ii) Bylaws of Farnsworth Bancorp, Inc. *
5 Opinion of Malizia, Spidi, Sloane & Fisch, P.C. regarding legality of securities registered *
8.1 Federal Tax Opinion of Malizia, Spidi, Sloane & Fisch, P.C.
8.2 State Tax Opinion of Lewis W. Parker, III *
8.3 Opinion of FinPro, Inc. as to the value of subscription rights *
10.1 Employment Agreement between Peoples Savings Bank and Gary N. Pelehaty *
10.2 Employment Agreement between Peoples Savings Bank and Charles Alessi *
10.3 Change in Control Severance Agreement between Peoples Savings Bank and Elaine
Denelsbeck *
23.1 Consent of Malizia, Spidi, Sloane & Fisch, P.C. (contained in its opinions filed as Exhibits 5 and
8.1) *
23.2 Consent of Lewis W. Parker, III
23.3 Consent of FinPro, Inc. *
23.4 Consent of Lewis W. Parker, III (contained in his opinion filed as Exhibit 8.2) *
24 Power of Attorney (reference is made to the signature page) *
27 Financial Data Schedule*
99.1 Stock Order Form *
99.2 Marketing Materials *
99.3 Appraisal Report of FinPro, Inc.
</TABLE>
---------------
* Previously filed
EXHIBIT 8.1
<PAGE>
July 28, 1998
Board of Directors
Peoples Savings Bank
789 Farnsworth Avenue
Bordentown, New Jersey 08505
Re: Federal Income Tax Opinion Relating to the Proposed Conversion of
Peoples Savings Bank from a Federally-Chartered Mutual Savings Bank to
a Federally-Chartered Stock Savings Bank Pursuant to Section
368(a)(1)(F) of the Internal Revenue Code of 1986, as amended
-------------------------------------------------------------
Members of the Board:
In accordance with your request, set forth hereinbelow is the opinion
of this firm relating to material federal income tax consequences of the
proposed conversion (the "Conversion") of Peoples Savings Bank (the "Bank") from
a federally-chartered mutual savings bank to a federally-chartered capital stock
savings bank (the "Stock Bank"), and formation of a parent holding company (the
"Holding Company") which will simultaneously acquire all of the outstanding
stock of Stock Bank. As proposed, the Conversion will be implemented pursuant to
Section 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended (the
"Code").
We have examined such corporate records, certificates and other
documents as we have considered necessary or appropriate for this opinion. In
such examination, we have accepted, and have not independently verified, the
authenticity of all original documents, the accuracy of all copies, and the
genuineness of all signatures. Further, the capitalized terms which are used in
this opinion and are not expressly defined herein shall have the meaning
ascribed to them in the Bank's Plan of Conversion adopted on March 2, 1998 (the
"Plan of Conversion").
STATEMENT OF FACTS
------------------
Based solely upon our review of such documents, and upon such
information as the Bank has provided to us (which we have not attempted to
verify in any respect), and in reliance upon such documents and information, we
understand the relevant facts with respect to the Conversion to be as follows:
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 2
The Bank is a federally-chartered mutual savings bank. As a mutual
savings bank, the Bank has no authorized capital stock. Instead, the Bank, in
mutual form, has a unique equity structure. A savings depositor of the Bank is
entitled to interest income on his or her account balance as declared and paid
by the Bank. A savings depositor has no right to a distribution of any earnings
of the Bank, but rather these amounts become retained earnings of the Bank.
However, a savings depositor has a right to share pro rata, with respect to the
withdrawal value of his or her respective savings account, in any liquidation
proceeds distributed in the event the Bank is ever liquidated. Voting rights in
the Bank are held by its members. Each member is entitled to cast one vote for
each $100 or a fraction thereof of the withdrawal value of the member's account
and each borrower member is entitled to one vote. Each member shall have a
maximum of 1,000 votes. All of the interests held by a savings depositor in the
Bank cease when such depositor closes his or her account(s) with the Bank.
The Board of Directors of the Bank has decided that in order to promote
the growth and expansion of the Bank through the raising of additional capital,
it would be advantageous for the Bank to: (i) convert from a federally-chartered
mutual savings bank to a federally-chartered capital stock savings bank, and
(ii) arrange for the Holding Company to simultaneously acquire all of the Stock
Bank's stock. The Bank's Board of Directors has determined that in order to
provide greater flexibility in future operations of the Bank, including
diversification of business opportunities and acquisition, it is advantageous to
have the Stock Bank's stock held by the Holding Company. Pursuant to the Plan of
Conversion, the Bank's certificate of incorporation to operate as a mutual
savings bank will be amended and a new certificate of incorporation will be
acquired to allow it to continue its operations in the form of a
federally-chartered capital stock savings bank. The Plan of Conversion provides
for the conversion of the Bank from mutual-to-stock form, and an appraisal of
the pro forma market value of the stock of the Stock Bank, which will be owned
solely by the Holding Company. The Plan of Conversion must be approved by the
Office of Thrift Supervision ("OTS"), and by an affirmative vote of at least a
majority of the total votes eligible to be cast at a special meeting of the
Bank's members called to vote on the Plan of Conversion.
The Holding Company is being formed under the laws of the State of New
Jersey for the purpose of the proposed transaction described herein, to engage
in business as a savings and loan holding company and to hold all of the stock
of the Stock Bank. The Holding Company will issue shares of its voting common
stock ("Holding Company Stock") upon completion of the Conversion, as described
below, to persons purchasing such shares through a Subscription Offering and to
the general public in a Public Offering.
Following appropriate regulatory approval, the Plan of Conversion
provides for the issuance of shares of Holding Company Stock to eligible
depositors and borrowers of the Bank and others as described below and set forth
in the Plan of Conversion. The aggregate purchase price at which all shares of
Holding Company Stock will be offered and sold pursuant to the
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 3
Plan of Conversion will be equal to the estimated pro forma market value of the
Bank at the time of the Conversion as held as a subsidiary of the Holding
Company. The estimated pro forma market value will be determined by an
independent appraiser. Pursuant to the Plan of Conversion, all such shares of
Holding Company Stock will be issued and sold at a uniform price per share. The
Conversion and the sale of newly issued shares of the Stock Bank's stock to the
Holding Company will be deemed effective concurrently with the closing of the
sale of Holding Company Stock.
As required by OTS regulations, shares of Holding Company Stock will be
offered pursuant to non-transferable subscription rights on the basis of
preference categories. All shares must be sold and to the extent that Holding
Company Stock is available, no subscriber will be allowed to purchase less than
25 shares of Holding Company Stock, provided that the aggregate purchase price
does not exceed $500. The Bank has established various preference categories
under which shares of Holding Company Stock may be purchased and a public
offering category for the sale of shares not purchased under the preference
categories. If the third preference category is determined to be inappropriate
to the Conversion, then there will only be three preference categories
consisting of the first, second, and fourth preference categories set forth
below, and all references herein to Supplemental Eligible Account Holder and the
Supplemental Eligibility Record Date shall not be applicable to the subject
transaction.
The first preference category is reserved for the Bank's Eligible
Account Holders. The Plan of Conversion defines "Eligible Account Holder" as any
person holding a Qualifying Deposit. The Plan of Conversion defines "Qualifying
Deposit" as the aggregate balance of all savings accounts of an Eligible Account
Holder in the Bank at the close of business on December 31, 1996, which is at
least equal to $50.00. If a savings account holder of the Bank qualifies as an
Eligible Account Holder, he or she will receive, without payment,
non-transferable subscription rights to purchase Holding Company Stock. The
number of shares that each Eligible Account Holder may subscribe to is equal to
the greater of (a) the maximum purchase limitation established for the Public
Offering; (b) one tenth of one percent of the total offering of shares; or (c)
fifteen times the product (rounded down to the next whole number) obtained by
multiplying the total number of shares of Holding Company Stock to be issued by
a fraction of which the numerator is the amount of the Qualifying Deposit of the
Eligible Account Holder and the denominator is the total amount of the
Qualifying Deposits of all Eligible Account Holders. If there is an
oversubscription, shares will be allocated among subscribing Eligible Account
Holders so as to permit each account holder, to the extent possible, to purchase
a number of shares sufficient to make his or her total allocation equal to 100
shares. Any shares not then allocated shall be allocated among the subscribing
Eligible Account Holders on an equitable basis, related to the amounts of their
respective deposits as compared to the total deposits of Eligible Account
Holders on the Eligibility Record Date. Non-transferable subscription rights to
purchase Holding Company Stock received by officers and directors of the Bank
and their associates based on their increased deposits in the Bank in the one
year period
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 4
preceding the Eligibility Record Date shall be subordinated to all other
subscriptions involving the exercise of nontransferable subscription rights to
purchase shares of Holding Company Stock under the first preference category.
The second preference category is reserved for tax-qualified employee
stock benefit plans of the Stock Bank. The Plan of Conversion defines "tax
qualified employee stock benefit plans" as any defined benefit plan or defined
contribution plan, such as an employee stock ownership plan, stock bonus plan,
profit-sharing plan or other plan, which, with its related trust meets the
requirements to be "qualified" under Section 401 of the Code. Under the Plan of
Conversion, the Stock Bank's tax-qualified employee stock benefit plans may
subscribe for up to 10% of the shares of Holding Company Stock to be offered in
the Conversion.
The third preference category is reserved for the Bank's Supplemental
Eligible Account Holders. The Plan of Conversion defines "Supplemental Eligible
Account Holder" as any person (other than officers or directors of the Bank and
their associates) holding a deposit in the Bank on the last day of the calendar
quarter preceding the approval of the Plan of Conversion by the OTS
("Supplemental Eligibility Record Date"). This third preference category will
only be used in the event that the Eligibility Record Date is more than 15
months prior to the date of the latest amendment to the Application for Approval
of Conversion on Form AC filed prior to approval by the OTS. The third
preference category provides that each Supplemental Eligible Account Holder will
receive, without payment, nontransferable subscription rights to purchase
Holding Company Stock to the extent that such shares of Holding Company Stock
are available after satisfying subscriptions for shares in the first and second
preference categories above. The number of shares to which a Supplemental
Eligible Account Holder may subscribe to is the greater of (a) the maximum
purchase limitation established for the Community Offering; (b) one-tenth of one
percent of the total offering of shares; or (c) fifteen times the product
(rounded down to the next whole number) obtained by multiplying the total number
of the shares of Holding Company Stock to be issued by a fraction of which the
numerator is the amount of the deposit of the Supplemental Eligible Account
Holder and the denominator is the total amount of the deposits of all
Supplemental Eligible Account Holders on the Supplemental Eligibility Record
Date. Subscription rights received pursuant to the third preference category
shall be subordinated to all rights under the first and second preference
categories. Non-transferable subscription rights to be received by a
Supplemental Eligible Account Holder in the third preference category shall be
reduced by the subscription rights received by such account holder as an
Eligible Account Holder under the first and second preference categories. In the
event of an oversubscription, shares will be allocated so as to enable each
Supplemental Eligible Account Holder, to the extent possible, to purchase a
number of shares sufficient to make his total allocation, including shares
previously allocated in the first and second preference categories, equal to 100
shares or the total amount of his subscription, whichever is less. Any shares
not then allocated shall be allocated among the subscribing Supplemental
Eligible Account Holders
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 5
on an equitable basis related to the amount of their respective deposits as
compared to the total deposits of Supplemental Eligible Account Holders on the
Supplemental Eligibility Record Date.
If there is no oversubscription of the Holding Company Stock in the
first, second, and third preference categories, the fourth preference category
becomes operable. In the fourth preference category, members of the Bank
entitled to vote at the special meeting of members to approve the Plan of
Conversion who are not Eligible Account Holders or Supplemental Eligible Account
Holders ("Other Members") will receive, without payment, non-transferable
subscription rights entitling them to purchase Holding Company Stock. Other
Members shall each receive subscription rights to purchase up to the maximum
purchase limitation established for the Public Offering or one-tenth of one
percent of the total offering of shares, to the extent that Holding Company
Stock is available. In the event of an oversubscription by Other Members,
Holding Company Stock will be allocated pro rata according to the number of
shares subscribed for by each Other Member.
The Plan of Conversion further provides for limitations upon purchases
of Holding Company Stock. Specifically, any person by himself or herself or with
an associate or a group of persons acting in concert may subscribe for not more
than $60,000 of Holding Company Stock offered pursuant to the Plan of
Conversion, except that Tax-Qualified Employee Stock Benefit Plans may purchase
up to 10% of the total shares of Holding Company Stock issued. Subject to any
required regulatory approval and the requirements of applicable laws and
regulations, the Bank may increase or decrease any of the purchase limitations
set forth herein at any time. The Board of Directors of the Bank may, in its
sole discretion, increase the maximum purchase limitation up to 5.0%. Requests
to purchase additional shares of Holding Company Stock under this provision will
be allocated by the Board of Directors on a pro rata basis giving priority in
accordance with the priority rights set forth in the Plan of Conversion.
Officers and directors of the Bank and their associates may not purchase in the
aggregate more than 35% of the Holding Company Stock issued pursuant to the
Conversion. Directors of the Bank will not be deemed associates or a group
acting in concert solely as a result of their membership on the board of
directors of the Bank. All of the shares of Holding Company Stock purchased by
officers and directors will be subject to certain restrictions on sale for a
period of one year.
The Plan of Conversion provides that no person will be issued any
subscription rights or be permitted to purchase any Holding Company Stock if
such person resides in a foreign country or in a state of the United States with
respect to which all of the following apply: (a) a small number of persons
otherwise eligible to subscribe for shares under the Plan of Conversion reside
in such state; (b) the issuance of subscription rights or the offer or sale of
the Holding Company Stock in such state, would require the Bank or the Holding
Company under the securities law of such state to register as a broker or dealer
or to register or otherwise qualify its securities for
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 6
sale in such state; and (c) such registration or qualification would be
impracticable for reasons of cost or otherwise.
The Plan of Conversion also provides for the establishment of a
Liquidation Account by Stock Bank for the benefit of all Eligible Account
Holders and Supplemental Eligible Account Holders (if applicable). The
Liquidation Account will be equal in amount to the net worth of Bank as of the
time of the Conversion. The establishment of the Liquidation Account will not
operate to restrict the use or application of any of the net worth accounts of
the Stock Bank, except that the Stock Bank will not declare or pay cash
dividends on or repurchase any of its stock if the result thereof would be to
reduce its net worth below the amount required to maintain the Liquidation
Account. The Liquidation Account will be for the benefit of the Bank's Eligible
Account Holders and Supplemental Eligible Account Holders who maintain accounts
in the Bank at the time of the Conversion. All such account holders, including
those not entitled to subscription rights for reasons of foreign or out-of-state
residency (as described above), will have an interest in the Liquidation
Account. The interest an Eligible Account Holder and Supplemental Eligible
Account Holder will have a right to receive, in the event of a complete
liquidation of the Stock Bank, is a distribution from the Liquidation Account in
the amount of the then current adjusted subaccount balances for savings accounts
then held, which will be made prior to any liquidation distribution with respect
to the capital stock of the Stock Bank.
The initial subaccount balance for a savings account held by an
Eligible Account Holder and/or Supplemental Eligible Account Holder shall be
determined by multiplying the opening balance in the Liquidation Account by a
fraction of which the numerator is the amount of the qualifying deposit in the
savings account, and the denominator is the total amount of qualifying deposits
of all Eligible Account Holders and Supplemental Eligible Account Holders in the
Stock Bank. The initial subaccount balance will never be increased, but may be
decreased if the deposit balance in any qualifying savings account of any
Eligible Account Holder or any savings account of any Supplemental Eligible
Account Holder on any annual closing date subsequent to the Eligibility Record
Date or Supplemental Eligibility Record Date, whichever is applicable, is less
than the lesser of (1) the deposit balance in the savings account at the close
of business on any other annual closing date subsequent to the Eligibility
Record Date or the Supplemental Eligibility Record Date, or (2) the amount of
the qualifying deposit in such savings account. In such event, the subaccount
balance for the savings account will be adjusted by reducing each subaccount
balance in an amount proportionate to the reduction in the savings account
balance. Once decreased, the Plan of Conversion provides that the subaccount
balance will never be subsequently increased, and if the savings account of an
Eligible Account Holder or Supplemental Eligible Account Holder is closed, the
related subaccount balance in the Liquidation Account will be reduced to zero.
The net proceeds from the sale of the shares of Holding Company Stock
will become the permanent capital of Holding Company, and the Holding Company
will in turn purchase 100%
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 7
of the stock issued by Stock Bank, in exchange for up to 50% of the Holding
Company's stock offering net proceeds or such other percentage as is approved by
the Board of Directors with the concurrence of the OTS.
Following the Conversion, voting rights in Stock Bank will rest
exclusively in the Holding Company. Voting rights in the Holding Company will
rest exclusively in the stockholders of the Holding Company. The Conversion will
not interrupt the business of the Bank, and its business will continue as usual
under the Stock Bank. Each depositor will retain a withdrawable savings account
or accounts equal in amount to the withdrawable account or accounts at the time
of the Conversion. Mortgage loans of the Bank will remain unchanged and retain
their same characteristics in the Stock Bank after the Conversion. The Stock
Bank will continue membership in the Federal Home Loan Bank System, and will
remain subject to the regulatory authority of the OTS. Deposits in Stock Bank
will continue to be insured by the Savings Bank Insurance Fund administered by
the Federal Deposit Insurance Corporation up to applicable limits of insurance
coverage.
Immediately prior to the Conversion, the Bank will have a positive net
worth in accordance with generally accepted accounting principles. The savings
account holders of the Bank will pay expenses of the Conversion solely
attributable to them, if any. Further, the Bank will pay its own expenses of the
Conversion and will not pay any expenses solely attributable to the Bank's
savings account holders or to the purchasers of Holding Company Stock.
REPRESENTATIONS BY MANAGEMENT
-----------------------------
In connection with the Conversion, the following statements,
representations and declarations have been made to us by management of the Bank:
1. The Conversion will be implemented in accordance with the terms of
the Plan of Conversion and all conditions precedent contained in the Plan of
Conversion shall be performed prior to the consummation of the Conversion.
2. The fair market value of the withdrawable savings accounts plus
interests in the Liquidation Account to be constructively received under the
Plan of Conversion will in each instance be equal to the fair market value of
each savings account of the Bank plus the interest in the residual equity of the
Bank surrendered in exchange therefor. All proprietary rights in the Bank form
an integral part of the withdrawable savings accounts being surrendered in the
Conversion.
3. The Holding Company and the Stock Bank each have no plan or
intention to redeem or otherwise acquire any of the Holding Company Stock issued
in the proposed transaction.
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 8
4. To the best of the knowledge of the management of the Bank, there is
not now nor will there be at the time of the Conversion, any plan or intention,
on the part of the depositors in the Bank to withdraw their deposits following
the Conversion. Deposits withdrawn immediately prior to or immediately
subsequent to the Conversion (other than maturing deposits) are considered in
making these assumptions.
5. Immediately following the consummation of the proposed transaction,
the Stock Bank will possess the same assets and liabilities as the Bank held
immediately prior to the proposed transaction, plus substantially all of the net
proceeds from the sale of its stock to the Holding Company (except for assets
used to pay expenses in the Conversion). Assets used to pay expenses of the
Conversion (without reference to the expenses of the Subscription Offering and
the Public Offering) and all distributions (except for regular normal interest
payments made by the Bank immediately preceding the transaction) will in the
aggregate constitute less than one percent (1%) of the assets of the Bank, net
of liabilities associated with such assets, and will be paid by the Bank and the
Holding Company from the proceeds of the Subscription Offering and Public
Offering.
6. Following the Conversion, Stock Bank will continue to engage in its
business in substantially the same manner as engaged in by the Bank prior to the
Conversion. The Stock Bank has no plan or intention to sell or otherwise dispose
of any of its assets, except in the ordinary course of business.
7. No cash or property will be given to any member of the Bank in lieu
of subscription rights or an interest in the Liquidation Account of the Stock
Bank.
8. None of the compensation to be received by any deposit account
holder-employees of the Bank or the Holding Company will be separate
consideration for, or allocable to, any of their deposits in the Bank. No
interest in the Liquidation Account of the Stock Bank will be received by any
deposit account holder-employees as separate consideration for, or will
otherwise be allocable to, any employment agreement, and the compensation paid
to each deposit account holder-employee, during the twelve month period
preceding or subsequent to the Conversion, will be for services actually
rendered and will be commensurate with amounts paid to third parties bargaining
at arm's length for similar services. No shares of Holding Company Stock will be
issued to or purchased by any deposit account holder-employee of the Bank or the
Holding Company at a discount or as compensation in the Conversion.
9. The aggregate fair market value of the Qualifying Deposits held by
Eligible Account Holders or Supplemental Eligible Account Holders (if
applicable) as of the close of business on the Eligibility Record Date or
Supplemental Eligibility Record Date (if applicable) entitled to interests in
the Liquidation Account to be established by Stock Bank equalled or
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 9
exceeded 99% of the aggregate fair market value of all savings accounts
(including those accounts of less than $50.00) in the Bank as of the close of
business on such date.
10. There is no plan or intention for the Stock Bank to be liquidated
or merged with another corporation following the consummation of the Conversion.
11. The Bank and the Stock Bank are corporations within the meaning of
Section 7701(a)(3) of the Code.
12. The Holding Company has no plan or intention to sell or otherwise
dispose of the stock of the Stock Bank received by it in the proposed
transaction.
13. Both the Stock Bank and the Holding Company have no plan or
intention, either currently or at the time of the Conversion, to issue
additional shares of common stock following the proposed transaction, other than
shares that may be issued to employees or directors pursuant to certain stock
option and stock incentive plans or that may be issued to employee benefit
plans.
14. If all of the net proceeds from the sale of Holding Company Stock
had been contributed by the Holding Company to the Stock Bank in exchange for
common stock of the Stock Bank in the Conversion, as opposed to the Holding
Company retaining a portion of such net proceeds ("retained proceeds"), and if
the Stock Bank immediately thereafter made a distribution of the retained
proceeds to the Holding Company, the Stock Bank would have sufficient current
and accumulated earnings and profits for tax purposes such that the distribution
would not result in the recapture of any portion of the bad debt reserves of the
Stock Bank under Section 593(e) of the Code.
15. At the time of the proposed transaction, the fair market value of
the assets of the Bank on a going concern basis (including intangibles) will
equal or exceed the amount of its liabilities plus the amount of liability to
which such assets are subject. The Bank will have a positive regulatory net
worth at the time of the Conversion.
16. The Bank is not under the jurisdiction of a court in a Title 11 or
similar case within the meaning of Section 368(a)(3)(A) of the Code. The
proposed transaction does not involve a receivership, foreclosure, or similar
proceeding before a federal or state agency involving a financial institution to
which Section 585 or 593 of the Code applies.
17. The Bank's savings depositors will pay expenses of the Conversion
solely attributable to them, if any. The Holding Company, the Stock Bank, and
the Bank will pay their own expenses of the Conversion and will not pay any
expenses solely attributable to the savings depositors or to the Holding Company
stockholders.
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 10
18. The liabilities of the Bank assumed by the Stock Bank plus the
liabilities, if any, to which the transferred assets are subject were incurred
by the Bank in the ordinary course of its business and are associated with the
assets transferred.
19. There will be no purchase price advantage for the Bank's deposit
account holders who purchase Holding Company Stock in the Conversion.
20. Neither the Bank nor the Stock Bank is an investment company as
defined in Sections 368(a)(2)(F)(iii) and (iv) of the Code.
21. No creditors of the Bank have taken any steps to enforce their
claims against the Bank by instituting bankruptcy or other legal proceedings, in
either a court or appropriate regulatory agency, that would eliminate the
proprietary interests of the members of the Bank prior to the Conversion.
22. The proposed transaction does not involve the payment to the Stock
Bank or the Bank of financial assistance from federal agencies within the
meaning of Notice 89-102, 1989-40 C.B. 1.
23. The Eligible Account Holders' and Supplemental Eligible Account
Holders' proprietary interest in the Bank arise solely by virtue of the fact
that they are account holders in the Bank.
24. At the time of the Conversion, the Bank will not have outstanding
any warrants, options, convertible securities, or any other type of right
pursuant to which any person could acquire an equity interest in the Holding
Company or the Stock Bank.
25. The Stock Bank has no plan or intention to sell or otherwise
dispose of any of the assets of the Bank acquired in the transaction (except for
dispositions, including deposit withdrawals, made in the ordinary course of
business).
26. On a per share basis, the purchase price of the Holding Company
Stock in the Conversion will be equal to the fair market value of such stock at
the time of the completion of the proposed transaction.
27. The Bank has received or will receive an opinion from Finpro, Inc.
("Appraiser's Opinion"), which concludes that subscription rights to be received
by Eligible Account Holders, Supplemental Eligible Account Holders, and other
eligible subscribers do not have any ascertainable fair market value, because
they are acquired by the recipients without cost, are non-transferable, exist
for such a short duration, and merely afford the recipients a right only to
purchase Holding Company Stock at a price equal to its estimated fair market
value, which
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 11
will be the same price used in the Public Offering for unsubscribed shares of
Holding Company Stock.
28. The Bank will not have any net operating losses, capital loss
carryovers, or built-in losses at the time of the Conversion.
OPINION OF COUNSEL
------------------
Based solely upon the foregoing information and our analysis and
examination of current applicable federal income tax laws, rulings, regulations,
judicial precedents, and the Appraiser's Opinion, and provided the Conversion is
undertaken in accordance with the above assumptions, we render the following
opinion of counsel:
1. The change in the form of operation of the Bank from a federally
chartered mutual savings bank to a federally chartered capital stock savings
bank, as described above, will constitute a reorganization within the meaning of
Section 368(a)(1)(F) of the Code, and no gain or loss will be recognized to
either the Bank or to the Stock Bank as a result of such Conversion. (See Rev.
Rul. 80-105, 1980-1 C.B. 78). The Bank and the Stock Bank will each be a party
to a reorganization within the meaning of Section 368(b) of the Code. (Rev. Rul.
72-206, 1972-1 C.B. 104).
2. No gain or loss will be recognized by the Stock Bank on the receipt
of money in exchange for shares of Stock Bank stock. (Section 1032(a) of the
Code).
3. The Holding Company will recognize no gain or loss upon its receipt
of money in exchange for shares of Holding Company Stock. (Section 1032(a) of
the Code).
4. The assets of the Bank will have the same basis in the hands of the
Stock Bank as in the hands of the Bank immediately prior to the Conversion.
(Section 362(b) of the Code).
5. The holding period of the assets of the Bank to be received by the
Stock Bank will include the period during which the assets were held by the Bank
prior to the Conversion. (Section 1223(2) of the Code).
6. Depositors will realize gain, if any, upon the issuance to them of
(i) withdrawable deposit accounts of the Stock Bank, (ii) subscription rights in
connection with the Conversion, and/or (iii) interests in the Liquidation
Account of the Stock Bank. Any gain resulting therefrom will be recognized, but
only in an amount not in excess of the fair market value of the Liquidation
Accounts and/or subscription rights received. The Liquidation Accounts will have
nominal, if any, fair market value. Based solely on the accuracy of the
conclusion reached in the Appraiser's Opinion, and our reliance on such opinion,
that the subscription rights have no
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 12
value at the time of distribution or exercise, no gain or loss will be required
to be recognized by depositors upon receipt or distribution of subscription
rights. (Section 1001 of the Code). See Paulsen v. Commissioner, 469 U.S. 131,
139 (1985).
Likewise, based solely on the accuracy of the aforesaid conclusion
reached in the Appraiser's Opinion, and our reliance thereon, we give the
following opinions: (a) no taxable income will be recognized by the borrowers,
directors, officers, and employees of the Bank upon distribution to them of
subscription rights or upon the exercise or lapse of the subscription rights to
acquire Holding Company Stock at fair market value; (b) no taxable income will
be realized by the depositors of the Bank as a result of the exercise or lapse
of the subscription rights to purchase Holding Company Stock at fair market
value (Rev. Rul. 56-572, 1956-2 C.B. 182); and (c) no taxable income will be
realized by the Bank, the Stock Bank, or the Holding Company on the issuance or
distribution of subscription rights to depositors of the Bank to purchase shares
of Holding Company Stock at fair market value (Section 311 of the Code).
Notwithstanding the Appraiser's Opinion, if the subscription rights are
subsequently found to have a fair market value greater than zero, income may be
recognized by various recipients of the subscription rights (in certain cases,
whether or not the rights are exercised) and the Holding Company and/or the
Stock Bank may be taxable on the distribution of the subscription rights.
(Section 311 of the Code). In this regard, the subscription rights may be taxed
partially or entirely at ordinary income tax rates.
7. The basis of the savings accounts in the Stock Bank received by the
account holders of the Bank will be the same as the basis of their savings
accounts in the Bank surrendered in exchange therefor (Section 358(a)(1)). The
basis of the interests in the Liquidation Account of the Stock Bank received by
the Eligible Account Holders and Supplemental Eligible Account Holders will be
zero, that being the cost of such property. (Paulsen v. Commissioner, 469 U.S.
131, 139 (1985)). The basis of the non-transferable subscription rights will be
zero, provided that such subscription rights are not deemed to have a fair
market value and that the subscription price of such stock issuable upon
exercise of such rights is equal to the fair market value of such stock. The
basis of the Holding Company Stock to its stockholders will be purchase price
thereof, increased by the basis, if any, of the subscription rights exercised
(Section 1012 of the Code). The holding period of Holding Company Stock will
commence upon the effective date of exercise of the subscription rights (Section
1223(6) of the Code). The holding period for the Holding Company Stock purchased
pursuant to the direct community offering, public offering or under other
purchase arrangements will commence on the date following the date on which such
stock is purchased. (Rev. Rul. 70- 598, 1970-2 C.B. 168).
8. The part of the taxable year of the Bank before the Conversion and
the part of the taxable year of the Stock Bank after the Conversion will
constitute a single taxable year of the
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 13
Stock Bank. (See Rev. Rul. 57-276, 1957-1 C.B. 126). Consequently, the Bank will
not be required to file a federal income tax return for a portion of such
taxable year (Section 1.381(b)-1(a)(2) of the Treasury Regulations).
9. As provided by Section 381(c)(2) of the Code and Section
1.381(c)(2)-1 of the Treasury Regulations, the Stock Bank will succeed to and
take into account the earnings and profits or deficit in earnings and profits of
the Bank as of the date or dates of transfer.
10. Pursuant to the provisions of Section 381(c)(4) of the Code and
Section 1.381(c)(4)-1(a)(1)(ii) of the Treasury Regulations, the Stock Bank will
succeed to and take into account, immediately after the reorganization, those
accounts of the Bank which represent bad debt reserves in respect of which the
Bank has taken a bad debt deduction for taxable years ending on or before the
date of the reorganization. The bad debt reserves will not be required to be
restored to the gross income of either the Bank or the Stock Bank for the
taxable year of the reorganization, and such bad debt reserves will have the
same character in the hands of the Stock Bank as they would have had in the
hands of the Bank if no distribution or transfer had occurred. No opinion is
being expressed as to whether the bad debt reserves will be required to be
restored to the gross income of either the Bank or the Stock Bank for the
taxable year of the reorganization.
11. Regardless of book entries made for the creation of the Liquidation
Account, the Conversion, as described above, will not diminish the accumulated
earnings and profits of the Stock Bank available for the subsequent distribution
of dividends within the meaning of Section 316 of the Code. (Section 1.312-11(b)
and (c) of the Treasury Regulations).
12. For purposes of Section 381 of the Code, the Stock Bank will be
treated the same as the Bank would have been had there been no reorganization.
Accordingly, the taxable year of the Bank will not end on the effective date of
the proposed transaction merely because of the transfer of assets of the Bank to
the Stock Bank and the tax attributes of the Bank enumerated in Section 381(c)
will be taken into account by the Stock Bank as if there had been no
reorganization (Section 1.381(b)-1(a)(2)) of the Treasury Regulations).
No opinion is expressed as to the tax treatment of the Conversion under
the provisions of any of the other sections of the Code and Treasury Regulations
which may also be applicable thereto, or under federal law, or to the tax
treatment of any conditions existing at the time of, or effects resulting from,
the transactions which are not specifically covered by the items set forth
above. Notwithstanding any reference to Section 381 above, no opinion is
expressed or intended to be expressed herein as to the effect, if any, of this
transaction on the continued existence of, the carryover or carryback of, or the
limitation on, any net operating losses of the Bank or its successor, the Stock
Bank, under the Code.
<PAGE>
Board of Directors
Peoples Savings Bank
July 28, 1998
Page 14
We hereby consent to the filing of this opinion as an exhibit to the
Application for Conversion on Form AC of the Bank filed with the OTS, the
Application H-(e)(1)-S of the Holding Company filed with the OTS, and the
Registration Statement on Form SB-2 of the Holding Company filed under the
Securities Act of 1933, as amended, and to the reference of our firm in the
prospectus related to this opinion.
Very truly yours,
/s/Malizia, Spidi, Sloane & Fisch, P.C.
---------------------------------------
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
EXHIBIT 23.2
<PAGE>
LEWIS W. PARKER, III
CERTIFIED PUBLIC ACCOUNTANT
- -------------------------------
P.O. BOX 6510, 9L PRINCESS ROAD
LAWRENCEVILLE, N.J. 08648
TEL.: 609-896-2177
FAX: 609-844-0133
ACCOUNTANT'S CONSENT
Board of Directors
Peoples Savings Bank
I consent to the use in Pre-effective Amendment #1 to the Registration Statement
of Peoples Savings Bank on Form SB-2 and Amendment #1 to the Application for
Conversion on Form AC of my report dated October 29, 1997, in the financial
statements of Peoples Savings Bank and as of September 30, 1997 and 1996, and
for the fiscal years then ended, and to the reference to my firm under the
heading "Experts" in the related prospectus.
/s/Lewis W. Parker, III
- -----------------------
Lawrenceville, New Jersey
July 28, 1998
EXHIBIT 99.3
<PAGE>
Table of Contents
Farnsworth Bancorp, Inc.
Bordentown, New Jersey
<TABLE>
<CAPTION>
<S> <C> <C>
INTRODUCTION 1
1. OVERVIEW AND FINANCIAL ANALYSIS 3
- --------------------------------------------------------------------------------------------------------------------
GENERAL OVERVIEW 3
HISTORY 4
STRATEGIC DIRECTION 5
BALANCE SHEET TRENDS 6
LOAN PORTFOLIO 8
INVESTMENTS 11
INVESTMENTS AND MORTGAGE-BACKED SECURITIES 12
ASSET QUALITY 13
FUNDING COMPOSITION 16
ASSET/LIABILITY MANAGEMENT 18
NET WORTH AND CAPITAL 19
INCOME AND EXPENSE TRENDS 20
SUBSIDIARIES 25
LEGAL PROCEEDINGS 25
2. MARKET AREA ANALYSIS 26
- --------------------------------------------------------------------------------------------------------------------
MARKET AREA DEMOGRAPHICS 26
MARKET AREA DEPOSIT CHARACTERISTICS 28
3. COMPARISONS WITH PUBLICLY TRADED THRIFTS 29
- --------------------------------------------------------------------------------------------------------------------
INTRODUCTION 29
SELECTION SCREENS 29
SELECTION CRITERIA 31
COMPARABLE GROUP PROFILES 33
4. MARKET VALUE DETERMINATION 38
- --------------------------------------------------------------------------------------------------------------------
INTRODUCTION 38
BALANCE SHEET STRENGTH 39
ASSET QUALITY 42
EARNINGS QUALITY, PREDICTABILITY AND GROWTH 43
MARKET AREA 47
MANAGEMENT 48
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
DIVIDENDS 49
LIQUIDITY OF THE ISSUE 51
SUBSCRIPTION INTEREST 52
RECENT REGULATORY MATTERS 53
MARKET FOR SEASONED THRIFT STOCKS 54
ACQUISITION MARKET 58
ADJUSTMENTS TO VALUE 63
VALUATION APPROACH 64
VALUATION CONCLUSION 68
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
List of Figures
Farnsworth Bancorp, Inc.
Bordentown, New Jersey
<TABLE>
<CAPTION>
<S> <C> <C>
FIGURE 1 - CURRENT BRANCH LIST 3
FIGURE 2 - ASSET AND RETAINED EARNINGS CHART 6
FIGURE 3 - KEY BALANCE SHEET DATA 7
FIGURE 4 - KEY RATIOS 7
FIGURE 5 - NET LOANS RECEIVABLE CHART 8
FIGURE 6 - LOAN MIX AS OF MARCH 31, 1998 CHART 9
FIGURE 7 - LOAN MIX 10
FIGURE 8 - SECURITIES CHART 11
FIGURE 9 - INVESTMENT MIX 12
FIGURE 10 - NON-PERFORMING ASSETS CHART 13
FIGURE 11 - NON-PERFORMING LOANS 14
FIGURE 12 - ALLOWANCE FOR POSSIBLE LOAN AND LEASE LOSSES CHART 15
FIGURE 13 - DEPOSIT AND BORROWING TREND CHART 16
FIGURE 14 - DEPOSIT MIX 17
FIGURE 15 - NET PORTFOLIO VALUE 18
FIGURE 16 - CAPITAL ANALYSIS 19
FIGURE 17 - NET INCOME CHART 20
FIGURE 18 - AVERAGE YIELDS AND COSTS 21
FIGURE 19 - SPREAD AND MARGIN CHART 22
FIGURE 20 - INCOME STATEMENT TRENDS 23
FIGURE 21 - PROFITABILITY TREND CHART 24
FIGURE 22 - POPULATION DEMOGRAPHICS 26
FIGURE 23 - HOUSEHOLD CHARACTERISTICS 27
FIGURE 24 - MARKET SHARE 28
FIGURE 25 - POTENTIAL COMPARABLES 30
FIGURE 26 - COMPARABLES ELIMINATED 30
FIGURE 27 - COMPARABLE GROUP 30
FIGURE 28 - KEY FINANCIAL INDICATORS 36
FIGURE 29 - KEY BALANCE SHEET DATA 39
FIGURE 30 - BALANCE SHEET GROWTH DATA 40
FIGURE 31 - CAPITAL DATA 41
FIGURE 32 - ASSET QUALITY TABLE 42
FIGURE 33 - NET INCOME TREND 44
FIGURE 34 - PROFITABILITY DATA 45
FIGURE 35 - INCOME STATEMENT DATA 46
FIGURE 36 - DIVIDEND DATA 50
FIGURE 37 - MARKET CAPITALIZATION DATA 51
FIGURE 38 - RECENT STANDARD CONVERSION PERFORMANCE 52
FIGURE 39 - SNL THRIFT INDEX CHART 54
FIGURE 40 - HISTORICAL SNL INDEX 55
FIGURE 41 - EQUITY INDICES 56
FIGURE 42 - HISTORICAL RATES 57
FIGURE 43 - DEALS FOR LAST THIRTEEN QUARTERS 58
FIGURE 44 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO BOOK 59
FIGURE 45 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO TANGIBLE BOOK 59
FIGURE 46 - THRIFT ACQUISITION MULTIPLES, PRICE TO EARNINGS 60
FIGURE 47 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO ASSETS 60
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
FIGURE 48 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO DEPOSITS 61
FIGURE 49 - DEAL MULTIPLES 61
FIGURE 50 - ACQUISITION PREMIUM TABLE 62
FIGURE 51 - VALUE RANGE OFFERING DATA 65
FIGURE 52 - VALUE RANGE OFFERING DATA 65
FIGURE 53 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA MIDPOINT 66
FIGURE 54 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA SUPERMAXIMUM 66
FIGURE 55 - RECENT STANDARD CONVERSIONS TRADING MULTIPLES TO THE BANK'S PRO FORMA
MIDPOINT 66
FIGURE 56 - RECENT STANDARD CONVERSION TRADING MULTIPLES TO THE BANK'S PRO FORMA
SUPERMAXIMUM 67
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
List of Exhibits
Farnsworth Bancorp, Inc.
Bordentown, New Jersey
<TABLE>
<CAPTION>
Exhibit
- -----------
<S> <C>
1 Profile of FinPro, Inc.
2 Reconciliation of OTS TFR Report Schedule SO to Audited Financial Income Statement
3 Consolidated Statements of Financial Condition
4 Consolidated Statements of Income
5 Consolidated Statements of Cash Flows
6 Consolidated Statements of Changes in Net Worth
7 Selected Data on All Public Thrifts
8 Industry Multiples
9 Recent Standard Conversions 1997 to Date
10 Appraisal Pro forma March 31, 1998 - 12 Month Data Adjusted
11 Offering Circular Pro forma March 31, 1998 - 3 Months Data Unadjusted
12 Offering Circular Pro forma March 31, 1998 - 12 Months Data Unadjusted
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 1
================================================================================
Introduction
This report represents FinPro, Inc.'s ("FinPro") independent appraisal of the
estimated pro forma market value of the common stock ( the "Common Stock") of
Farnsworth Bancorp, Inc. (the "Company") in connection with the Plan of
Conversion ("Conversion") of Peoples Savings Bank (the "Bank") from a federally
chartered mutual savings bank to a federally chartered stock savings bank.
Pursuant to the Plan of Conversion, (i) the Bank will convert from a federally
chartered savings bank organized in mutual form to a federally chartered savings
bank organized in the stock form, (ii) the Company will sell its Common Stock to
the eligible depositors and members and then to the public, and (iii) the
Company will use 75% of the net proceeds to purchase all of the capital stock of
the Bank.
It is our understanding that the Company will offer its stock in a subscription
and community offering to the Bank's Eligible Account Holders, to Supplemental
Eligible Account Holders of the Bank, to Other Participants, to the board
members, officers and employees of the Bank, and to the community. This
appraisal has been prepared in accordance with Regulation 563b.7 and with the
"Guidelines for Appraisal Reports for the Valuation of Savings and Loan
Associations Converting from Mutual to Stock Form of Organization" of the Office
of Thrift Supervision ("OTS") which have been adopted in practice by the Federal
Deposit Insurance Corporation ("FDIC"), including the most recent revisions as
of October 21, 1994, and applicable regulatory interpretations thereof.
In the course of preparing our report, we reviewed the financial statements of
the Bank's operations for the six months ending March 31, 1998, the year ended
September 30, 1997 and the Bank's operations and financials for the prior year
ended September 30, 1996. We also reviewed the Bank's Application for Approval
of Conversion including the Proxy Statement and the Company's Form SB-2
registration statement as filed with the Securities and Exchange Commission
("SEC"). We have conducted due diligence analysis of the Bank and the Company
(hereinafter, collectively referred to as "the Bank") and held due diligence
related discussions with the Bank's management and board, Lewis W. Parker, III,
CPA, (the Bank's independent auditor), Ryan Beck & Company (the Bank's
underwriter), and Malizia, Spidi, Sloane & Fisch, P.C. (the Bank's special
counsel). The valuation parameters set forth in the appraisal were predicated on
these discussions but all conclusions related to the valuation were reached and
made independent of such discussions.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 2
================================================================================
Where appropriate, we considered information based upon other publicly available
sources, which we believe to be reliable; however, we cannot guarantee the
accuracy or completeness of such information. We visited the Bank's primary
market area and reviewed the market area economic condition. We also reviewed
the competitive environment in which the Bank operates and its relative
strengths and weaknesses. We compared the Bank's performance with selected
publicly traded thrift institutions. We reviewed conditions in the securities
markets in general and in the market for savings institutions in particular. Our
analysis included a review of the estimated effects of the Conversion on the
Bank, operation and expected financial performance as they related to the Bank's
estimated pro-forma value.
In preparing our valuation, we relied upon and assumed the accuracy and
completeness of financial and other information provided to us by the Bank and
its independent accountants. We did not independently verify the financial
statements and other information provided by the Bank and its independent
accountants, nor did we independently value any of the Bank's assets or
liabilities. This estimated valuation considers the Bank only as a going concern
and should not be considered as an indication of its liquidation value.
Our valuation is not intended, and must not be construed, to be a recommendation
of any kind as the advisability of purchasing shares of Common Stock in the
Conversion. Moreover, because such valuation is necessarily based upon estimates
and projections of a number of matters, all of which are subject to change from
time to time, no assurance can be given that persons who purchase shares of
Common Stock in the Conversion will thereafter be able to sell such shares at
prices related to the foregoing valuation of the pro-forma market value thereof.
FinPro is not a seller of securities within the meaning of any federal or state
securities laws and any report prepared by FinPro shall not be used as an offer
or solicitation with respect to the purchase or sale of any securities.
The estimated valuation herein will be updated as appropriate. These updates
will consider, among other factors, any developments or changes in the Bank
financial condition, operating performance, management policies and procedures
and current conditions in the securities market for thrift institution common
stock. Should any such developments or changes, in our opinion, be material to
the estimated pro-forma market value of the Bank, appropriate adjustments to the
estimated pro-forma market value will be made. The reasons for any such
adjustments will be explained at that time.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 3
================================================================================
1. Overview and Financial Analysis
- -------------------------------------------------
GENERAL OVERVIEW
- -------------------------------------------------
The Bank after the Conversion, will be a federally chartered stock savings bank.
As of March 31, 1998, the Bank had $38.7 million in total assets, $36.1 million
in deposits, $28.3 million in net loans and $2.2 million in equity.
The following table shows the Bank's branch network as of March 31, 1998.
FIGURE 1 - CURRENT BRANCH LIST
Branch Office Town
-----------------------------------------------------------------------------
Burlington County
789 Farnsworth Avenue Bordentown
4 Broad Street Florence
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 4
================================================================================
- -------------------------------------------------
HISTORY
- -------------------------------------------------
1880 Peoples Building and Loan Association was founded.
1965 Merged with Bordentown Savings and Loan and became Bordentown Peoples
Savings and Loan.
1974 Moved from Farnsworth Avenue to new facility.
1985 Acquired Florence Township Savings and Loan.
1989 Acquired Beverly Building and Loan.
1992 Gary Pelehaty was hired as President.
1994 Closed the Beverly branch.
1995 Completed construction of administrative headquarters.
1995 Changed charters from a state chartered savings and loan to a
federally chartered savings bank.
1995 Changed its name to Peoples Savings Bank.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 5
================================================================================
- -------------------------------------------------
STRATEGIC DIRECTION
- -------------------------------------------------
The Bank projects controlled balance sheet growth with the Bank originating
residential mortgages, home equity loans, and commercial loans (secured by real
estate). On the liability side, the Bank will grow deposits by emphasizing core
deposits (transaction and savings accounts) and opening one de novo branch.
The Bank will maintain its interest rate spread and margin through commercial
real estate loan growth. In addition, the Bank will maintain earnings by
emphasizing asset quality and controlling expenses.
The Bank has planned the following major thrusts over the five-year planning
horizon:
1. Convert to a stock institution to raise capital to fund growth
opportunities and strengthen the capital position of the Bank;
2. Planned core business growth of the Bank to grow into expense
structure;
3. Growth in the loan origination volumes to maintain a loan to asset
ratio in excess of 60%;
4. Increase the Allowance for Loan and Lease Losses to approximately
0.75% of total loans;
5. Open a de novo branch by March 2000;
6. Hire additional staff to accommodate the anticipated deposit and
balance sheet growth; and
7. Analyze and implement wholesale leverage strategies as interest rate
and economic opportunities present themselves.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 6
================================================================================
- -------------------------------------------------
BALANCE SHEET TRENDS
- -------------------------------------------------
The Bank's balance sheet increased by $4.3 million, or 12.58%, from $34.4
million at September 30, 1996 to $38.7 million at March 31, 1998.
Retained earnings has increased $346 thousand from $1.9 million at September 30,
1996 to $2.2 million at March 31, 1998. The retained earnings to assets ratio is
currently 5.75%.
FIGURE 2 - ASSET AND RETAINED EARNINGS CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
Assets $34,362 $37,619 $38,685
Retained Earnings $ 1,879 $ 2,088 $ 2,225
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 7
================================================================================
The following tables set forth certain information concerning the financial
position of the Bank along with selected ratios at the dates indicated.
FIGURE 3 - KEY BALANCE SHEET DATA
- --------------------------------------------------------------------------------
-------------------------------------
March 31, At September 30,
-------------------------------------
1998 1997 1996
-------------------------------------
Selected Financial Condition and Other Data: ($ in thousands)
-------------------------------------
Total Amount of:
Assets $ 38,685 $ 37,619 $ 34,362
Loans receivable, net 28,280 26,409 23,261
Mortgage-backed securities 2,540 3,016 2,781
Investment securities, net 2,886 3,852 5,467
Cash and cash equivalents 2,925 2,365 483
Deposits 36,088 35,197 29,570
FHLB advances - - 2,435
Retained earnings 2,225 2,088 1,879
Number of:
Deposit accounts 6,548 5,923 5,530
Full service offices 2 2 2
- --------------------------------------------------------------------------------
Source: Offering Prospectus
FIGURE 4 - KEY RATIOS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
At or For the Six At or For the Year Ended
Key Operating Ratios Months Ended March 31, September 30,
-------------------------------------------------------
1998 1997 1996
-------------------------------------------------------
<S> <C> <C> <C>
Performance Ratios:
Return on average assets (net income (loss) divided by 0.60% 0.51% -0.05%
average assets)
Return on average equity (net income (loss) divided by 10.44% 9.98% -1.02%
average equity)
Average equity to average assets 5.78% 5.29% 5.80%
Equity to assets 5.75% 5.55% 5.47%
Interest rate spread 3.34% 3.28% 3.52%
Net interest margin 3.68% 3.50% 3.62%
Average interest-earning assets to average
interest -bearing liabilities 108.90% 105.63% 102.81%
Net interest income after provision for loan losses,
to total noninterest expense 103.29% 110.12% 88.11%
Asset Quality Ratios:
Non-performing loans to total assets 0.69% 0.53% 0.03%
Non-performing assets to total assets 0.69% 0.53% 0.89%
Non-performing loans to total loans 0.94% 0.75% 0.04%
Allowance for loan losses to total loans 0.44% 0.25% 0.25%
Allowance for loan losses to non-performing loans 26.32% 33.16% 644.44%
- --------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 8
================================================================================
- -------------------------------------------------
LOAN PORTFOLIO
- -------------------------------------------------
The Bank's loan portfolio has increased by $5.0 million from September 30, 1996
to March 31, 1998, and as a percent of assets, has increased from 67.69% at
September 30, 1996 to 73.10% at March 31, 1998.
FIGURE 5 - NET LOANS RECEIVABLE CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
Loans receivable, net $23,261 $26,409 $28,280
Net loans to assets 67.69% 70.20% 73.10%
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 9
================================================================================
The Bank is primarily a residential one-to-four family lender.
FIGURE 6 - LOAN MIX AS OF MARCH 31, 1998 CHART
Pie Graphic as follows:
Other 0.1%
Auto 0.1%
Savings Account 0.8%
Home Equity 11.2%
Commercial Real Estate 4.3%
Commercial 0.6%
Construction 8.1%
Residential 74.8%
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 10
================================================================================
The Bank's loan mix has remained relatively consistent from 1996 to 1998 and is
primarily residential in its composition. Commercial real estate loans have
increased, but are not material in total.
FIGURE 7 - LOAN MIX
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
At March 31, At September 30,
------------------------------------------------------------------------------
1998 1997 1996
------------------------------------------------------------------------------
Amount Percent Amount Percent Amount Percent
------------------------------------------------------------------------------
($ in thousands)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Residential $ 21,579 74.8% $ 20,220 73.5% $ 19,107 77.6%
Construction 2,332 8.1% 2,842 10.3% 1,840 7.5%
Commercial real estate 1,234 4.3% 1,144 4.2% 541 2.2%
Commercial business 176 0.6% 18 0.1% 54 0.2%
Consumer Loans:
Home Equity 3,223 11.2% 3,004 10.9% 2,870 11.7%
Savings account loans 231 0.8% 246 0.9% 197 0.8%
Automobile Loans 34 0.1% - 0.0% - 0.0%
Other 52 0.1% 50 0.1% - 0.0%
-------- ----- -------- ----- -------- -----
$ 28,861 100.0% $ 27,524 100.0% $ 24,609 100.0%
======== ===== ======== ===== ======== =====
Less:
Loans in process 293 895 1,137
Deferred loan origination fees 163 154 153
Allowance for loan losses 125 66 58
-------- -------- --------
Total loans, net $ 28,280 $ 26,409 $ 23,261
======== ======== ========
- -------------------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 11
================================================================================
- -------------------------------------------------
INVESTMENTS
- -------------------------------------------------
The Bank's investment portfolio has decreased from $8.8 million at September 30,
1996, to $8.1 million at March 31, 1998. The mix has shifted from investment
securities toward interest bearing deposits.
FIGURE 8 - SECURITIES CHART
Sep-96 Sep-97 Sep-98
------ ------ ------
Interest Bearing Deposits $ 361 $1,082 $2,450
Mortgage-Backed Securities 2,781 3,016 2,540
Investment Securities 5,701 4,085 3,147
------ ------ ------
Total $8,843 $8,183 $8,137
====== ====== ======
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 12
================================================================================
- -------------------------------------------------
INVESTMENTS AND MORTGAGE-
BACKED SECURITIES
- -------------------------------------------------
The Bank has shifted its investment portfolio from agency securities toward
interest bearing deposits.
FIGURE 9 - INVESTMENT MIX
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
At March 31, At September 30,
--------------------------------------------------
1998 1997 1996
--------------------------------------------------
($ in thousands)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Securities held to maturity:
U.S. agency securities $ 2,659 $ 3,656 $ 5,302
State and local government 99 99 99
Mortgage-backed securities held to maturity 2,540 3,016 2,781
------- ------- -------
Total securities held to maturity 5,298 6,771 8,182
Securities available for sale:
Interest bearing deposits 2,450 1,082 361
FHLMC stock 128 96 66
FHLB stock 261 234 234
------- ------- -------
Total securities available for sale $ 2,839 $ 1,412 $ 661
------- ------- -------
Total investment and mortgage-backed securities $ 8,137 $ 8,183 $ 8,843
======= ======= =======
- --------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 13
================================================================================
- -------------------------------------------------
ASSET QUALITY
- -------------------------------------------------
The Bank's non-performing assets to total assets ratio has declined from 0.89%
at September 30, 1996 to 0.69% at March 31, 1998.
FIGURE 10 - NON-PERFORMING ASSETS CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
Non-Performing Loans $ 9 $199 $266
REO $298 $ 0 $ 0
NPAs to PD End Assets 0.89% 0.53% 0.69%
NPLs to Pd End Assets 0.03% 0.53% 0.69%
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 14
================================================================================
At March 31, 1998, the Bank's non-performing loan to net loan ratio was 0.94%
and non-performing assets as a percentage of total assets was 0.69%, indicating
solid asset quality.
FIGURE 11 - NON-PERFORMING LOANS
- ------------------------------------------------------------------------
At March 31,
($ in thousands)
- ------------------------------------------------------------------------
Non-performing loans $266
Real estate owned, net -
- ------------------------------------------------------------------------
Total non-performing assets $266
Non-performing loans as a percentage
of net loans 0.94%
Non-performing assets as a percentage
of total assets 0.69%
- ------------------------------------------------------------------------
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 15
================================================================================
The Bank increased its allowance for loan and lease losses from $58 thousand at
September 30, 1996 to $125 thousand at March 31, 1998. The ALLL to loans was
0.44% as of March 31, 1998.
FIGURE 12 - ALLOWANCE FOR POSSIBLE LOAN AND LEASE LOSSES CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
ALLL $58 $66 $125
ALLL to Loans 0.25% 0.25% 0.44%
ALLL to NPA 18.89% 33.17% 46.99%
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 16
================================================================================
- -------------------------------------------------
FUNDING COMPOSITION
- -------------------------------------------------
Overall, deposits have increased from $29.6 million at September 30, 1996 to
$36.1 million at March 31, 1998. From time to time, the Bank relies on short
term borrowings for liquidity management purposes. The Bank had no outstanding
borrowings at March 31, 1998.
FIGURE 13 - DEPOSIT AND BORROWING TREND CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
Total Deposits $29,570 $35,197 $36,088
Borrowed Funds $ 2,435 $ 0 $ 0
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 17
================================================================================
The Bank's deposit mix as of March 31, 1998 is presented below. Time deposits
comprised 53.96% of total deposits.
FIGURE 14 - DEPOSIT MIX
- -------------------------------------------------------------------------------
As of March 31,1998
($ in thousands)
- -------------------------------------------------------------------------------
Interest % of
Category Amount Rate (1) Total
- -------------------------------------------------------------------------------
NOW accounts $ 4,516 1.75% 12.51%
Passbook savings 7,007 2.50% 19.42%
Money Market Accounts 2,540 2.62% 7.04%
Non-interest bearing accounts 2,551 0.00% 7.07%
------ -----
Total non-certificates 16,614 46.04%
Certificates of Deposit:
Jumbo's 1,695 Neg. 4.70%
91 Days 926 4.43% 2.57%
4-6 months 2,834 4.70% 7.85%
7-12 months 5,686 5.36% 15.75%
13-24 months 4,685 5.64% 12.98%
25-36 months 945 5.69% 2.62%
37-48 months 515 5.83% 1.43%
49-120 months 2,188 5.83% 6.06%
------ -----
Total certificates 19,474 53.96%
------ -----
Total deposits $36,088 100.00%
======= ======
- --------------------------------------------------------------------------------
(1) Offering as of 3/31/98
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 18
================================================================================
- -------------------------------------------------
ASSET/LIABILITY MANAGEMENT
- -------------------------------------------------
The following chart illustrates the Bank's net portfolio value ("NPV") at March
31, 1998, as calculated by the OTS. The Bank manages its interest rate risk
through normal balance sheet activities and does not utilize any hedging
techniques. This chart indicates that the Bank has moderate level of interest
rate risk. At the +200 basis point rate shock, the Bank's NPV falls below the
level of tangible capital. This is due to its large conventional mortgage
portfolio and its reliance on time deposits.
FIGURE 15 - NET PORTFOLIO VALUE
[GRAPHIC OMITTED]
Source: OTS calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 19
================================================================================
- -------------------------------------------------
NET WORTH AND CAPITAL
- -------------------------------------------------
At March 31, 1998, the Bank had capital in excess of the minimum requirements
for all three capital requirements.
FIGURE 16 - CAPITAL ANALYSIS
- --------------------------------------------------------------------------------
March 31, 1998
- --------------------------------------------------------------------------------
Regulatory Capital Position Amount Percent
(000's) of Assets
- --------------------------------------------------------------------------------
GAAP capital $ 2,225 5.75%
Tangible capital:
Actual capital $ 2,143 5.54%
Regulatory Requirement 580 1.50%
------- ----
Excess $ 1,563 4.04%
======= ====
Core capital:
Actual capital $ 2,143 5.54%
Regulatory Requirement 1,160 3.00%
------- ----
Excess $ 983 2.54%
======= ====
Risk-based capital:
Actual capital $ 2,268 11.81%
Regulatory Requirement 1,536 8.00%
------- ----
Excess $ 732 3.81%
======= ====
- --------------------------------------------------------------------------------
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 20
================================================================================
- -------------------------------------------------
INCOME AND EXPENSE TRENDS
- -------------------------------------------------
The Bank had a net loss of $20 thousand for the fiscal year ended September 30,
1996. This loss included a $192 thousand one-time deposit premium to
recapitalize SAIF ($121,000 thousand net of taxes). Excluding this non-recurring
expense, adjusted net income would have been $101 thousand. The annualized net
income for the six month period ending March 31, 1998 was $228 thousand. The
March 31, 1998 earnings were skewed by a collection on a deficiency judgement of
$54 thousand, $34 thousand on an after-tax basis. The adjusted annualized six
month net income for March 31, 1998, was $160 thousand.
FIGURE 17 - NET INCOME CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
Net Income $(20) $192 $228
Adjusted Net Income $101 $192 $160
ROA -0.05% 0.51% 0.60%
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 21
================================================================================
Interest rate spread and margin increased for the six months ended March 31,
1998 from figures for the year ended September 30, 1997. The increase is due to
decreased cost of funding.
FIGURE 18 - AVERAGE YIELDS AND COSTS
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
For the Six Months Years Ended September 30,
------------------------------- -------------------------------------------------------------
Ended March 31, 1998 1997 1996
---------------------------- ----------------------------------------------------------------
Average Yield/ Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost Balance Interest Cost
---------------------------- ----------------------------------------------------------------
---------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans receivable $27,392 $1,107 8.08% $24,832 $2,034 8.19% $21,636 $1,778 8.22%
Mortgage-backed securities 2,896 91 6.28% 2,962 177 5.97% 2,940 174 5.92%
Investment securities 3,442 96 5.50% 4,645 318 6.85% 5,531 364 6.57%
Other interest earning assets 1,944 39 4.01% 2,559 106 4.13% 1,537 53 3.45%
------- ----- ---- ------- ----- ---- ------- ------ ----
Total interest-earning assets 35,674 $1,333 7.47% 34,998 $2,635 7.53% 31,644 $2,369 7.49%
Non-interest earning assets 2,154 - 2,333 - 2,234 -
------- ------- -------
Total assets $37,828 1,333 $37,331 2,635 $33,878 $2,369
======= ======= ======= ======
Interest-bearing liabilities:
Now Accounts $ 4,225 $ 49 2.32% $ 3,830 $ 86 2.24% $ 3,708 $ 74 1.99%
Savings account 6,651 83 2.50% 6,187 152 2.46% 5,568 167 3.01%
Money market accounts 2,357 30 2.55% 2,283 60 2.62% 2,746 59 2.15%
Certificates of deposit 19,526 515 5.27% 19,530 1,031 5.28% 18,019 887 4.92%
Other liabilities - - 0.00% 1,302 80 6.14% 738 35 4.78%
------ ------ ---- ------ ------ ---- ------ ------ ----
Total interest-bearing liabilities 32,759 $ 677 4.13% 33,132 $1,409 4.25% 30,779 $1,222 3.97%
------ ------ ---- ------ ------ ---- ------ ------ ----
Non-interest-bearing liabilities
Non-interest bearing deposits 2,884 2,225 1,134
Total Liabilities 35,643 35,357 31,913
Retained earnings 2,185 1,974 1,965
------- ------- -------
Total liabilities and retained income $37,828 $37,331 $33,878
======= ======= =======
Net interest income $ 656 $1,226 $1,147
====== ====== ======
Interest rate spread 3.34% 3.28% 3.52%
==== ---- ----
Net yield on interest-earning assets 3.68% 3.50% 3.62%
==== ---- ----
Ratio of average interest-earning assets
to average interest bearing liabilities 108.90% 105.63% 102.81%
====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 22
================================================================================
The following chart illustrates the Bank's spread and margin since September 30,
1996.
FIGURE 19 - SPREAD AND MARGIN CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
Spread 3.52% 3.28% 3.34%
Margin 3.62% 3.50% 3.68%
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 23
================================================================================
The Bank had net income of $114 thousand for the six months ended March 31,
1998, compared with $62 thousand for the six months ended March 31, 1997. The
March 31, 1998 income is skewed upward due to a collection on deficiency
judgement of $54 thousand, $34 thousand on a tax impacted basis. If adjusted for
the $34 thousand after tax collected on deficiency, adjusted net income would be
$80 thousand.
FIGURE 20 - INCOME STATEMENT TRENDS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Six Months Year ended
Ended March 31, September 30,
--------------------------------------------------
1998 1997 1997 1996
--------------------------------------------------
Summary of Operations: ($ in thousands)
--------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 1,333 $ 1,263 $ 2,635 $ 2,369
Interest expense 677 688 1,409 1,222
------- ------- ------- -------
Net interest income 656 575 1,226 1,147
Provision for loan losses 59 4 8 13
------- ------- ------- -------
Net interest income after provision for loan losses 597 571 1,218 1,134
Other income 133 79 161 111
Other expense 578 566 1,106 1,287
------- ------- ------- -------
Income before income taxes 152 84 273 (42)
Income tax expense (benefit) 38 22 81 (22)
------- ------- ------- -------
Net income (loss) $ 114 $ 62 $ 192 $ (20)
======= ======= ======= =======
- ---------------------------------------------------------------------------------------------------------
Source: Offering Prospectus
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 24
================================================================================
The ROAA and ROAE increased slightly for the six month period ending March 31,
1998, over the September 30, 1997 year end ROAA and ROAE.
FIGURE 21 - PROFITABILITY TREND CHART
Sep-96 Sep-97 Mar-98
------ ------ ------
ROA 18.89% 33.17% 46.99%
ROE 3.52% 3.28% 3.34%
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 25
================================================================================
- -------------------------------------------------
SUBSIDIARIES
- -------------------------------------------------
The Bank does not have any subsidiaries.
- -------------------------------------------------
LEGAL PROCEEDINGS
- -------------------------------------------------
In the opinion of management, the Bank is not party to any legal proceedings
which are expected to have a material adverse effect on the Bank's financial
statements.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 26
================================================================================
2. Market Area Analysis
- -------------------------------------------------
MARKET AREA DEMOGRAPHICS
- -------------------------------------------------
The following tables summarize the demographics for the Bank's markets. The
analysis defines the Bank's market as a one and one half mile radius surrounding
the Bank's offices. New Jersey state data is provided as a benchmark for
comparison purposes.
FIGURE 22 - POPULATION DEMOGRAPHICS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Florence Bordentown NJ TOTAL
- ------------------------------------------------------------------------------------------------------------
POPULATION CHARACTERISTICS
<S> <C> <C> <C> <C>
LAND AREA (miles) 3.86 6.73 7,838.67
POPULATION
1980 CENSUS 6,531 8,567 7,364,833
1990 CENSUS 7,335 8,800 7,730,188
1997 ESTIMATE 6,914 9,043 7,935,029
2002 PROJECTION 6,648 9,212 8,141,107
GROWTH 1980 TO 1990 12.31% 2.72% 4.96%
PROJECTED GROWTH 1990 TO 2002 -9.36% 4.68% 5.32%
POPULATION DENSITY 1997 (persons / sq mile) 1,901.9 1,308.1 986.2
POPULATION BY URBAN VS. RURAL 6,716 8,485 7,730,188
URBAN 104.49% 101.77% 89.40%
RURAL -4.49% -1.77% 10.60%
POPULATION BY SEX - 1997 EST 6,914 9,043 7,935,029
MALE 46.84% 49.03% 48.40%
FEMALE 53.16% 50.97% 51.60%
MARITAL STATUS 5,700 7,206 6,223,524
SINGLE 24.68% 29.55% 29.15%
MARRIED 56.26% 51.80% 53.81%
SEPERATED/DIVORCED 11.11% 10.95% 9.03%
WIDOWED 7.95% 7.71% 8.01%
POPULATON BY RACE - 1997 EST 6,914 9,043 7,935,029
WHITE 82.63% 81.02% 71.46%
BLACK 12.77% 13.03% 13.22%
INDIAN 0.12% 0.16% 0.16%
ASIAN 1.14% 1.75% 4.37%
OTHER 0.13% 0.18% 0.12%
HISPANIC 3.19% 3.86% 10.66%
POPULATION BY AGE - 1997 EST 6,914 9,043 7,935,029
UNDER 5 YEARS 7.75% 6.36% 7.02%
5 TO 14 YEARS 14.73% 12.23% 12.94%
15 TO 24 YEARS 11.83% 12.61% 12.78%
25 TO 34 YEARS 14.35% 15.45% 15.77%
35 TO 44 YEARS 17.31% 17.42% 16.58%
45 TO 54 YEARS 12.29% 12.72% 12.61%
55 TO 64 YEARS 8.21% 8.75% 8.79%
65 + YEARS 13.52% 14.47% 13.52%
MEDIAN AGE 35.7 36.0 35.3
MEDIAN AGE OF HOUSEHOLDER 47.7 47.9 46.9
POPULATION 25+ BY EDUCATION LEVEL 4,798 6,017 5,166,233
ELEMENTARY 10.02% 7.38% 9.41%
SOME HIGH SCHOOL 13.17% 14.82% 13.92%
HIGH SCHOOL GRADUATE 41.61% 35.22% 31.10%
SOME COLLEGE 15.43% 16.59% 15.52%
ASSOCIATES DEGREE ONLY 5.49% 6.32% 5.20%
BACHELORS DEGREE ONLY 10.37% 13.77% 16.01%
GRADUATE DEGREE 3.91% 5.89% 8.85%
POPULATION ENROLLED IN SCHOOL 1,674 1,936 1,867,402
PRE-PRIMARY - PUBLIC 5.35% 4.06% 4.20%
PRE-PRIMARY - PRIVATE 3.82% 5.36% 4.07%
ELEM/HIGH - PUBLIC 57.28% 56.47% 54.56%
ELEM/HIGH - PRIVATE 13.86% 6.62% 9.41%
COLLEGE - PUBLIC 15.78% 20.99% 19.07%
COLLEGE - PRIVATE 3.90% 6.50% 8.69%
</TABLE>
Source: Claritas
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 27
================================================================================
FIGURE 23 - HOUSEHOLD CHARACTERISTICS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Florence Bordentown NJ TOTAL
- --------------------------------------------------------------------------------------------------
HOUSEHOLD CHARACTERISTICS
<S> <C> <C> <C> <C>
HOUSEHOLDS
1980 CENSUS 2,423 3,083 2,548,590
1990 CENSUS 2,762 3,326 2,794,711
1997 ESTIMATE 2,615 3,477 2,883,349
2002 PROJECTION 2,528 3,568 2,979,857
GROWTH 1980 TO 1990 13.99% 7.90% 9.66%
PROJECTED GROWTH 1990 TO 2002 -8.48% 7.26% 6.62%
HOUSEHOLD SIZE
AVG PERSONS PER HH 1980 2.70 2.78 2.89
AVG PERSONS PER HH 1990 2.66 2.65 2.77
AVG PERSONS PER HH 1997 EST 2.64 2.60 2.75
AVG PERSONS PER HH 2002 PROJ 2.63 2.58 2.73
CHANGE 1980 TO 1997 -0.05 -0.18 -0.14
POPULATION BY HOUSEHOLD TYPE 2,615 3,477 2,883,349
FAMILY HOUSEHOLDS 72.77% 69.01% 71.57%
NON-FAMILY HOUSEHOLDS 27.00% 23.74% 22.71%
GROUP QUARTERS 0.23% 7.25% 5.72%
HOUSEHOLDS BY TYPE 2,762 3,326 2,794,711
SINGLE MALE 8.64% 10.98% 8.98%
SINGLE FEMALE 14.51% 14.53% 14.14%
MARRIED COUPLE 55.83% 53.77% 56.49%
OTHER FAMILY - MALE HEAD 3.52% 3.99% 3.73%
OTHER FAMILY - FEMALE HEAD 13.82% 11.95% 12.11%
NON FAMILY - MALE HEAD 2.27% 2.48% 2.72%
NON FAMILY - FEMALE HEAD 1.42% 2.30% 1.83%
HOUSEHOLDS WITH CHILDREN 2,752 3,309 2,794,316
MARRIED COUPLE FAMILY 57.97% 56.36% 57.70%
OTHER FAMILY - MALE HEAD 2.76% 3.26% 3.47%
OTHER FAMILY - FEMALE HEAD 12.99% 9.66% 11.75%
NON FAMILY 26.28% 30.73% 27.07%
HOUSEHOLDS BY INCOME - 1997 EST 2,615 3,477 2,883,349
UNDER $5,000 2.26% 1.72% 2.78%
$5,000 TO 10,000 5.98% 4.57% 5.96%
$10,000 TO $15,000 4.86% 4.11% 5.54%
$15,000 TO $25,000 8.80% 11.26% 11.03%
$25,000 TO $35,000 13.51% 10.13% 11.57%
$35,000 TO $50,000 22.43% 13.38% 16.17%
$50,000 TO $75,000 25.51% 27.61% 21.55%
$75,000 TO $100,000 10.16% 15.28% 11.90%
$100,000 OR MORE 6.50% 11.95% 13.51%
MEDIAN HOUSEHOLD INCOME - 1997 EST $50,557 $60,686 $46,252
MEDIAN FAMILY INCOME - 1997 EST $57,835 $67,746 $53,399
PER CAPITA INCOME - 1997 EST $19,615 $23,975 $21,764
PUBLIC ASSISTANCE INCOME 2,752 3,309 2,794,316
WITH PUBLIC ASSISTANCE INCOME 4.28% 3.24% 5.68%
NO PUBLIC ASSISTANCE INCOME 95.72% 96.76% 94.32%
RETIREMENT INCOME 2,752 3,309 2,794,316
WITH RETIREMENT INCOME 20.28% 20.85% 17.42%
NO RETIREMENT INCOME 84.19% 82.50% 88.60%
HOUSEHOLDS BY NUMBER OF VEHICLES 2,750 3,324 2,794,711
NO VEHICLES 10.47% 8.33% 12.89%
1 VEHICLE 38.26% 33.29% 34.58%
2 VEHICLES 38.12% 42.16% 36.88%
3+ VEHICLES 13.15% 16.21% 15.65%
4 VEHICLES
5+ VEHICLES
ESTIMATED TOTAL VEHICLES 4,375 5,715 4,517,638
</TABLE>
Source: Claritas
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 28
================================================================================
- -------------------------------------------------
MARKET AREA DEPOSIT CHARACTERISTICS
- -------------------------------------------------
The Bank's branches, as mentioned earlier, are located in Bordentown and
Florence, New Jersey. Due to the nature of the Bank's service area, the
competition was defined as all branches within a two mile radius of the Bank's
facility. All of the competition for the Bordentown facility lie within 0.7
miles. Peoples has grown deposits 54% over the last five years at the Bordentown
facility.
The other facility is located in Florence. Within 700 feet of this facility is
the Sun National facility, all of the other competitors are between 1.5 - 2.0
miles away. Peoples has experienced modest growth over the last five years,
growing $1.7 million while Sun National has lost $5.3 million.
FIGURE 24 - MARKET SHARE
<TABLE>
<CAPTION>
BORDENTOWN: Market Share by Institution
Total Mkt Share $ Growth % Growth Avg Branch Efficiency
Institution 1997 1997 1993 - 1997 1993 - 1997 1997 Count Ratio
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total $178,261 100.00% $17,942 11.19% $35,652 5.00 100.0%
============================================================================================================================
CORESTATES BK NA $50,170 28.14% $26,236 109.62% $50,170 1.00 140.7%
FARMERS & MECHANICS BANK $8,996 5.05% $8,996 0.00% $8,996 1.00 25.2%
NEW JERSEY NB $0 0.00% ($15,354) -100.00% $0 - 0.0%
PEOPLES SAVINGS BANK $32,011 17.96% $11,232 54.05% $32,011 1.00 89.8%
SUMMIT BK $87,084 48.85% ($13,168) -13.13% $43,542 2.00 122.1%
</TABLE>
<TABLE>
<CAPTION>
Florence: Market Share by Institution
Total Mkt Share $ Growth % Growth Avg Branch Efficiency
Institution 1997 1997 1993 - 1997 1993 - 1997 1997 Count Ratio
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total $84,281 100.00% ($1,320) -1.54% $16,856 5.00 100.0%
============================================================================================================================
PEOPLES SAVINGS BANK $3,028 3.59% $1,669 122.81% $3,028 1.00 18.0%
SUN NB $16,401 19.46% ($5,275) -24.34% $16,401 1.00 97.3%
ROEBLING SAVINGS BANK $32,188 38.19% $4,857 17.77% $16,094 2.00 95.5%
SUMMIT BK $32,664 38.76% ($2,571) -7.30% $32,664 1.00 193.8%
</TABLE>
Source: FDIC data, FinPro calculations.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 29
================================================================================
3. Comparisons With Publicly Traded Thrifts
- -------------------------------------------------
INTRODUCTION
- -------------------------------------------------
This chapter presents an analysis of the Bank's operations against a Comparable
Group of publicly traded savings institutions. The Comparable Group was selected
from a universe of 394 public thrifts as of June 8, 1998. The Comparable Group
was selected based upon similarity of characteristics to the Bank. The
Comparable Group multiples provide the basis for the fair market valuation of
the Bank. Factors that influence the Bank's value such as balance sheet
structure and size, profitability, income and expense trends, capital levels,
credit risk, and recent operating results can be measured against the Comparable
Group. The Comparable Group current market pricing, coupled with the appropriate
adjustments for differences between the Bank and the Comparable Group, will then
be utilized as the basis for the pro-forma valuation of the Bank to-be-issued
common stock.
- -------------------------------------------------
SELECTION SCREENS
- -------------------------------------------------
When selecting the Comparables, it was determined that the balance sheet size of
the institution was of greater importance than geography due to the importance
of economies of scale in a small organization.
The selection screens utilized to identify possible Comparables from the list of
394 public thrifts at June 8, 1998 included:
1. The IPO date had to be before January 1, 1997, eliminating any new
conversions.
2. The conversion type had to be a full standard conversion.
3. The total asset size had to be less than or equal to $60 million.
4. The institution had to listed on either NASDAQ, AMEX or NYSE to ensure
trading liquidity.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 30
================================================================================
Applying these criteria against the 394 public thrifts resulted in the following
11 institutions.
FIGURE 25 - POTENTIAL COMPARABLES
<TABLE>
<CAPTION>
Number
of
Ticker Short Name Exchange City State Offices IPO Date
- ------------------------------------------------ --------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. NASDAQ Centralia IL 2 10/09/95
FLKY First Lancaster Bancshares NASDAQ Lancaster KY 1 07/01/96
GLMR Gilmer Financial Svcs, Inc. NASDAQ Gilmer TX 1 02/09/95
HBBI Home Building Bancorp NASDAQ Washington IN 2 02/08/95
HWEN Home Financial Bancorp NASDAQ Spencer IN 1 07/02/96
JOAC Joachim Bancorp Inc. NASDAQ De Soto MO 1 12/28/95
LONF London Financial Corp. NASDAQ London OH 1 04/01/96
MBSP Mitchell Bancorp Inc. NASDAQ Spruce Pine NC 1 07/12/96
PWBK Pennwood Bancorp Inc. NASDAQ Pittsburgh PA 3 07/15/96
RELI Reliance Bancshares Inc. NASDAQ Milwaukee WI 1 04/19/96
SCCB S. Carolina Community Bancshrs NASDAQ Winnsboro SC 3 07/07/94
</TABLE>
One institution was eliminated from this list as it is an announced acquisition
target.
FIGURE 26 - COMPARABLES ELIMINATED
Ticker Short Name City State
- ------------------------------------------------------ ------------------------
Announced acquisition target
- ----------------------------
JOAC Joachim Bancorp Inc. De Soto MO
The list of comparable institutions is as follows:
FIGURE 27 - COMPARABLE GROUP
<TABLE>
<CAPTION>
Number
of
Ticker Short Name Exchange City State Offices IPO Date
- -------------------------- ---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. NASDAQ Centralia IL 2 10/09/95
FLKY First Lancaster Bancshare NASDAQ Lancaster KY 1 07/01/96
GLMR Gilmer Financial Svcs, In NASDAQ Gilmer TX 1 02/09/95
HBBI Home Building Bancorp NASDAQ Washington IN 2 02/08/95
HWEN Home Financial Bancorp NASDAQ Spencer IN 1 07/02/96
LONF London Financial Corp. NASDAQ London OH 1 04/01/96
MBSP Mitchell Bancorp Inc. NASDAQ Spruce Pine NC 1 07/12/96
PWBK Pennwood Bancorp Inc. NASDAQ Pittsburgh PA 3 07/15/96
RELI Reliance Bancshares Inc. NASDAQ Milwaukee WI 1 04/19/96
SCCB S. Carolina Community Bancshrs NASDAQ Winnsboro SC 3 07/07/94
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 31
================================================================================
- -------------------------------------------------
SELECTION CRITERIA
- -------------------------------------------------
Excluded from the Comparable Group were institutions that were involved in
pending mergers or acquisitions. Also, institutions that completed their
conversions within the last year were also excluded as the earnings of newly
converted institutions do not reflect a full years benefit from the reinvestment
of proceeds, and thus the price/earnings multiples and return on equity measures
for these institutions tend to be skewed upward and downward respectively.
In an ideal world, all of the Comparable Group would contain the exact
characteristics of the Bank. The goal of the selection criteria process is to
find those institutions that most closely match those of the Bank. Given that
Farnsworth Bancorp is such a small institution, the list of potential
Comparables is severely limited and the performance ratios may vary to a greater
extent than a Comparable Group selected for a the conversion of a larger
institution. None of the Comparables selected will be exact clones of the Bank.
The members of the Comparable Group were selected based upon the following
criteria:
1. Asset size
2. Profitability
3. Capital Level
4. Balance Sheet Mix
5. Operating Strategy
6. Date of conversion
1. Asset Size The Comparable Group should have a similar asset size to the Bank.
Large institutions are not appropriate for the peer group due to a more
extensive branch network, greater financial strength, more access to diverse
markets and more capacity in terms of infrastructure. The Comparable Group
ranged in size from $36.9 million to $53.0 million in total assets with a median
of $43.3 million. The Bank's asset size was $38.7 million as of March 31, 1998
and will be $42.0 million on a pro forma basis at the midpoint of the estimated
valuation range.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 32
================================================================================
2. Profitability The Comparable Group had a median ROAA of 0.97% and a median
ROAE of 3.85% for the most recent quarter available. The Comparable Group
profitability measures had a dispersion about the mean for the ROAA measure
ranging from a low of 0.06% to a high of 1.43% while the ROAE measure ranged
from a low of 0.59% to a high of 5.70%. The Bank had an ROAA of 0.60% and ROAE
of 10.44% for the twelve month period ending March 31, 1998. However, the Bank's
ratios include the previously mentioned one time event. If adjusted the ROAA and
ROAE would be 0.42% and 7.32%, respectively.
3. Capital Level The average equity to assets ratio for the Comparable Group was
19.36% with a high of 49.96% and a low of 9.02%. At March 31, 1998, the Bank had
an equity to assets ratio of 5.75%. On a pro forma basis, at the midpoint the
Bank would have an equity to assets ratio of 13.20%.
4. Balance Sheet Mix At March 31, 1998, the Bank had a total net loan to asset
ratio of 73.10%. The median loan to asset ratio for the Comparables was 72.48%,
ranging from a low of 56.24% to a high of 89.82%. On the liability side the
Bank's deposit to asset ratio was 93.29% at March 31, 1998 while the Comparable
median was 72.32%, ranging from 39.54% to 80.90%. Additionally, the Bank had no
borrowings as of March 31, 1998 and the Comparable median borrowings to assets
ratio was 6.77% with a range of 0.00% to 25.88%.
5. Operating strategy An institution's operating characteristics are important
because they determine future performance. They also affect expected rates of
return and investor's general perception of the quality, risk and attractiveness
of a given company. Specific operating characteristics include profitability,
balance sheet growth, asset quality, capitalization, and non-financial factors
such as management strategies and lines of business.
6. Date of conversion Recent conversions, those completed after January 1, 1997,
were excluded since the earnings of a newly converted institution do not reflect
a full year's benefits of reinvestment of conversion proceeds. Additionally, new
issues tend to trade at a discount to the market averages.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 33
================================================================================
- -------------------------------------------------
COMPARABLE GROUP PROFILES
- -------------------------------------------------
o CSB Financial Group Inc. CSBF is a SAIF insured institution that
operates 2 branches in Centralia, Illinois and has $48.0 million in
assets. CSBF was the only Comparable with intangibles, 5.66% of
assets. CSBF had the second highest level of assets, $48.0 million,
and overhead ratio, 69.07%. CBSF also had the lowest level of interest
income at 6.87% of average assets. CSBF was selected to the Group
based on asset size, number of offices, profitability, and balance
sheet mix.
o First Lancaster Bancshares FLKY is a SAIF insured institution that has
the highest level of assets of the Group, $53.0 million, and operates
1 branch in Lancaster, Kentucky. FLKY had the highest loans to
deposits ratio, 194.98%, loans to assets ratio, 89.82%, borrowings to
assets ratio, 25.88%, nonperforming assets to assets ratio, 1.70%, and
asset growth rate, 31.04%. FLKY had the lowest reserves to
nonperforming loans ratio, 27.91%, reserves to nonperforming assets
plus 90 day delinquents ratio, 18.91%, and noninterest income to
average assets ratio, 0.00%. FLKY was selected to the Group based on
asset size, number of offices, and profitability.
o Gilmer Financial Services, Inc. GLMR is a SAIF insured thrift that
operates 1 office in Gilmer, Texas and has assets of $42.2 million.
GLMR had the highest nonperforming loans to loans ratio, 2.51%,
nonperforming assets to equity, 18.25%, reserves to loans ratio,
1.30%, interest expense to average assets ratio, 4.74%, noninterest
income to average assets ratio, 0.51%, efficiency ratio, 73.93%, and
overhead ratio, 69.11%. GLMR had the lowest loans to assets ratio,
56.24%, equity to assets ratio, 9.02%, core capital to assets ratio,
8.80%, equity plus reserves to assets ratio, 9.75%, total capital to
risk adjusted assets, 19.20%, return on average assets, 0.06%, return
on average equity, 0.59%, net interest margin, 2.78%, and net interest
income to average assets ratio, 2.76%. GLMR was selected to the Group
based on asset size, number of offices, and profitability.
o Home Building Bancorp HBBI is a SAIF insured thrift that operates 2
offices in Washington, Indiana and has $42.4 million in assets. HBBI
has the highest return on average equity, 5.70%. HBBI had the lowest
reserves to loans ratio, 0.29%, deposit growth rate, (7.69%), and the
second lowest reserves to nonperforming loans ratio, 29.02%. It was
selected as a comparable based on its asset size, number of offices,
balance sheet mix, and profitability.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 34
================================================================================
o Home Financial Bancorp HWEN is a SAIF insured institution with 1
office in Spencer, Indiana and assets of $41.5 million. Home Financial
had the highest interest income to average assets ratio, 8.70%,
noninterest expense to average assets ratio, 3.29%, and the second
highest interest expense to average assets ratio, 4.35%. HWEN was
selected as a comparable based on its asset size, number of offices,
and profitability.
o London Financial Corp. LONF is a SAIF insured institution with 1
office in London, Ohio and $37.9 million in assets. LONF has the
highest level of deposits to assets, 80.90%, reserves to o
nonperforming loans ratios, 238.16%, and reserves to nonperforming
assets plus 90 days delinquent ratio, 238.16%, and the lowest
noninterest expense to average assets, 2.34%. LONF was selected to the
Group based on asset size, number of offices, balance sheet mix, and
profitability.
o Mitchell Bancorp Inc. MBSP is a SAIF insured thrift that operates 1
office in Spruce Pine, North Carolina and has the lowest level of
assets of the Group at $36.9 million. MBSP has the highest return to
average assets, 1.43%, net interest margin ratio, 5.04%, net interest
income to average assets ratio, 4.87%, and deposit growth rate,
16.93%. MBSP had the lowest efficiency and overhead ratios, 49.27% and
49.18%, respectively. It was included as a comparable based on its
asset size, lack of borrowings and number of offices.
o Pennwood Bancorp Inc. PWBK is a SAIF insured institution that operates
3 offices in Pittsburgh, Pennsylvania. The institution has assets of
$46.4 million. PWBK has the highest loan growth rate, 36.55% and the
second highest reserves to loans ratio, 1.09%. PWBK was selected as a
comparable based on its asset size, balance sheet mix, and
profitability.
o Reliance Bancshares Inc. RELI is a SAIF insured thrift that operates 1
office in Milwaukee, Wisconsin and has $44.2 million in assets. RELI
has the highest equity to assets ratio, 49.96%, core capital ratio,
46.71% and net interest margin, 5.04%. RELI has the lowest deposits to
assets ratio, 39.54%, nonperforming loans to loans ratio, 0.00%,
nonperforming assets to assets ratio, 0.00%, nonperforming assets to
equity ratio, 0.00%, interest expense to average assets, 2.62%, and
lowest asset growth rate, (5.68%). RELI was selected to the Group
based on its asset size and growth rates.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 35
================================================================================
o S. Carolina Community Bancshrs SCCB is a SAIF insured institution with
3 offices in Winnsboro, South Carolina and $46.3 million in assets.
SCCB has the second highest deposits to assets ratio, 78.73%, and the
lowest loan growth rate, (0.31%). SCCB was selected as a comparable
based on its asset size, balance sheet mix and profitability.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 36
================================================================================
All data presented in figure 28 is from SNL Securities utilizing the most recent
quarter for balance sheet and income statement related items. All data for the
Bank is from the offering circular.
FIGURE 28 - KEY FINANCIAL INDICATORS
- --------------------------------------------------------------------------------
The Bank at Comparable Group
March 31, 1998 Quarter Median
(Most Recent
Quarter)
- --------------------------------------------------------------------------------
Balance Sheet Data
- --------------------------------------------------------------------------------
Gross Loans to Deposits 78.71% 96.73%
- --------------------------------------------------------------------------------
Total Net Loans to Assets 73.10% 72.48%
- --------------------------------------------------------------------------------
Deposits to Assets 93.29% 72.32%
- --------------------------------------------------------------------------------
Borrowed Funds to Assets 0.00% 6.77%
- --------------------------------------------------------------------------------
Balance Sheet Growth
- --------------------------------------------------------------------------------
Asset Growth Rate 5.67% 0.80%
- --------------------------------------------------------------------------------
Loan Growth Rate 14.17% 3.35%
- --------------------------------------------------------------------------------
Deposit Growth Rate 5.06% 6.81%
- --------------------------------------------------------------------------------
Capital
- --------------------------------------------------------------------------------
Equity to Assets 5.75% 19.36%
- --------------------------------------------------------------------------------
Tangible Equity to Assets 5.54% 19.36%
- --------------------------------------------------------------------------------
Intangible Assets to Equity 0.00% 0.00%
- --------------------------------------------------------------------------------
Regulatory Core Capital to Assets 5.54% 18.69%
- --------------------------------------------------------------------------------
Equity + Reserves to Assets 6.07% 20.04%
- --------------------------------------------------------------------------------
Total Capital to Risk Adjusted Assets 11.81% 36.30%
- --------------------------------------------------------------------------------
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 37
================================================================================
- --------------------------------------------------------------------------------
The Bank at Comparable Group
March 31, 1998 Quarter Average
(Most Recent
Quarter)
- --------------------------------------------------------------------------------
Asset Quality
- --------------------------------------------------------------------------------
Non-Performing Loans to Loans 0.94% 1.06%
- --------------------------------------------------------------------------------
Reserves to Non-Performing Loans 46.99% 69.51%
- --------------------------------------------------------------------------------
Non-Performing Assets to Assets 0.69% 1.26%
- --------------------------------------------------------------------------------
Non-Performing Assets to Equity 11.96% 4.79%
- --------------------------------------------------------------------------------
Reserves to Loans 0.44% 0.67%
- --------------------------------------------------------------------------------
Reserves to Non-Performing Assets + 90 Days Del. 46.99% 44.52%
- --------------------------------------------------------------------------------
Profitability
- --------------------------------------------------------------------------------
Return on Average Assets 0.60% 0.97%
- --------------------------------------------------------------------------------
Return on Average Equity 10.44% 3.85%
- --------------------------------------------------------------------------------
Income Statement
- --------------------------------------------------------------------------------
Net Interest Margin 3.68% 4.30%
- --------------------------------------------------------------------------------
Interest Income to Average Assets 7.05% 7.69%
- --------------------------------------------------------------------------------
Interest Expense to Average Assets 3.58% 3.80%
- --------------------------------------------------------------------------------
Net Interest Income to Average Assets 3.47% 4.14%
- --------------------------------------------------------------------------------
Noninterest Income to Average Assets 0.70% 0.24%
- --------------------------------------------------------------------------------
Noninterest Expense to Average Assets 3.06% 2.65%
- --------------------------------------------------------------------------------
Efficiency Ratio 73.25% 64.85%
- --------------------------------------------------------------------------------
Overhead Ratio 67.84% 63.04%
- --------------------------------------------------------------------------------
Source: The Bank Offering Circular, FinPro calculations and SNL Securities
Note: All of the Bank data is for the six months ended March 31, 1998,
annualized where appropriate.
Note: All of the Comparable data is as of the most recent quarter.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 38
================================================================================
4. Market Value Determination
- -------------------------------------------------
INTRODUCTION
- -------------------------------------------------
The estimated pro-forma market value of the Bank, along with certain adjustments
to its value relative to market values for the Comparable Group are delineated
in this section. The adjustments delineated in this section are made from
potential investors' viewpoints. A potential investor includes depositors
holding subscription rights and unrelated parties who may purchase stock in the
community offering and who are assumed to be aware of all relevant and necessary
facts as they pertain to the value of the Bank relative to other publicly traded
thrift institutions and relative to alternative investment opportunities.
There are numerous criteria on which the market value adjustments are based, but
the major ones utilized for purposes of this report include:
o Balance Sheet Strength
o Asset Quality
o Earnings Quality, Predictability and Growth
o Market Area
o Management
o Dividends
o Liquidity of the Issue
o Subscription Interest
o Recent Regulatory Matters
o Market for Seasoned Thrift Stocks
o Acquisition Market
After identifying the adjustments that should be made to market value, the
pro-forma market value for the Bank is computed and adjusted. The estimated
pro-forma market value for the Bank is then compared with the market valuation
ratios of the Comparable Group, recently converted public thrifts, New Jersey
thrifts and the aggregate ratios for all public thrifts.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 38
================================================================================
- -------------------------------------------------
BALANCE SHEET STRENGTH
- -------------------------------------------------
The balance sheet strength of an institution is an important market value
determinant, as the investment community considers such factors as bank
liquidity, capitalization, asset composition, funding mix, intangible levels and
interest rate risk in assessing the attractiveness of investing in the common
stock of a thrift. The following tables summarize the key financial elements of
the Bank measured against the Comparable Group.
FIGURE 29 - KEY BALANCE SHEET DATA
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
------------------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 47,983 75.83 57.68 76.06 0.00
FLKY First Lancaster Bancshares 53,002 194.98 89.82 46.07 25.88
GLMR Gilmer Financial Svcs, Inc. 42,171 81.48 56.24 69.02 20.27
HBBI Home Building Bancorp 42,430 90.16 68.17 75.61 9.43
HWEN Home Financial Bancorp 41,466 130.40 82.10 62.96 18.57
LONF London Financial Corp. 37,916 94.91 76.78 80.90 4.48
MBSP Mitchell Bancorp Inc. 36,931 133.45 76.80 57.55 0.00
PWBK Pennwood Bancorp Inc. 46,398 85.83 65.84 76.71 3.10
RELI Reliance Bancshares Inc. 44,174 156.11 61.73 39.54 9.06
SCCB S. Carolina Community Bancshrs 46,305 98.55 77.59 78.73 0.00
- -------------------------------------------------------------------------------------------------------------------------------
Average 43,878 114.17 71.28 66.32 9.08
Median 43,302 96.73 72.48 72.32 6.77
Maximum 53,002 194.98 89.82 80.90 25.88
Minimum 36,931 75.83 56.24 39.54 0.00
Farnsworth Bancorp, Inc. 38,685 78.71 73.10 93.29 0.00
Variance to the Comparable Median (4,617) (18.02) 0.63 20.97 (6.77)
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
Asset Composition - The Bank's net loan to asset ratio of 73.10% is
in-line with the median for the Comparable Group of 72.48%.
Funding Mix - The Bank is funded primarily through deposits, 93.29% of
assets, and retained earnings, 5.75% of assets. The Comparable Group
has a greater reliance on equity and borrowings than the Bank with a
median deposits to assets ratio of 72.32%, a borrowing ratio of 6.77%
of assets and equity to assets ratio of 19.36%. The Bank's lack of
borrowings leaves room for an additional funding source in the future.
Liquidity - The liquidity of the Bank and the Comparable Group appear
similar and were sufficient to meet all regulatory guidelines.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 40
================================================================================
The Bank's ability to grow the balance sheet has been limited by its
low level of equity.
FIGURE 30 - BALANCE SHEET GROWTH DATA
<TABLE>
<CAPTION>
Balance Sheet Growth as of The MRQ
------------------------------------------------------
Asset Loan Deposit
Growth Growth Growth
Rate Rate Rate
Ticker Short Name (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. (0.03) 0.45 2.14
FLKY First Lancaster Bancshares 31.04 36.26 11.17
GLMR Gilmer Financial Svcs, Inc. 7.89 14.84 14.24
HBBI Home Building Bancorp (4.79) 1.69 (7.69)
HWEN Home Financial Bancorp 5.13 3.81 8.87
LONF London Financial Corp. 1.62 3.80 6.52
MBSP Mitchell Bancorp Inc. 8.96 2.90 16.93
PWBK Pennwood Bancorp Inc. (3.19) 36.55 (2.25)
RELI Reliance Bancshares Inc. (5.68) (0.26) (3.20)
SCCB S. Carolina Community Bancshrs (0.23) (0.31) 7.10
- -------------------------------------------------------------------------------------------------------------
Average 4.07 9.97 5.38
Median 0.80 3.35 6.81
Maximum 31.04 36.55 16.93
Minimum (5.68) (0.31) (7.69)
Farnsworth Bancorp, Inc. 5.67 14.17 5.06
Variance to the Comparable Median 4.87 10.82 (1.75)
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 41
================================================================================
FIGURE 31 - CAPITAL DATA
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-------------------------------------------------------------------------------
Tangible Intangible Regulatory Equity + Total Capital/
Equity/ Equity/ Assets/ Core Cap/ Reserves/ Risk Adjusted
Assets Tang Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- -------------------------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 23.14 22.12 5.66 22.35 23.52 47.75
FLKY First Lancaster Bancshares 26.65 26.65 0.00 26.26 26.97 36.82
GLMR Gilmer Financial Svcs, Inc. 9.02 9.02 0.00 8.80 9.75 19.20
HBBI Home Building Bancorp 14.06 14.06 0.00 10.77 14.26 21.56
HWEN Home Financial Bancorp 18.00 18.00 0.00 15.30 18.70 26.30
LONF London Financial Corp. 13.76 13.76 0.00 16.00 14.24 31.48
MBSP Mitchell Bancorp Inc. 39.31 39.31 0.00 32.30 39.84 59.90
PWBK Pennwood Bancorp Inc. 18.34 18.34 0.00 19.07 19.05 35.77
RELI Reliance Bancshares Inc. 49.96 49.96 0.00 46.71 50.33 70.77
SCCB S. Carolina Community Bancshrs 20.38 20.38 0.00 18.30 21.02 39.80
- -----------------------------------------------------------------------------------------------------------------------------
Average 23.26 23.16 0.57 21.59 23.77 38.94
Median 19.36 19.36 0.00 18.69 20.04 36.30
Maximum 49.96 49.96 5.66 46.71 50.33 70.77
Minimum 9.02 9.02 0.00 8.80 9.75 19.20
Farnsworth Bancorp, Inc. 5.75 5.54 0.00 5.54 6.07 11.81
Variance to the Comparable Median (13.61) (13.82) 0.00 (13.15) (13.96) (24.49)
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
Capitalization - The Comparable Group's median equity to assets ratio
of 19.36% is higher than the Bank's ratio of 5.75%, however the Bank's
pro forma equity to assets ratio is 13.20% at the midpoint of the
valuation range.
Intangible Levels - One of the most important factors influencing
market values is the level of intangibles that an institution carries
on its books. Thrifts trade more on tangible book than on book. Only
one of the Comparables has intangible assets. The Bank had no
intangible assets.
Interest Rate Risk - The Bank has a moderate level of interest rate
risk, evidenced by a net portfolio value that falls below the starting
level of tangible equity at the +200 basis point rate shock.
The Bank's asset mix, pro forma capital levels, and intangible levels are
in-line with the Comparables. The Comparables have a slightly higher reliance on
borrowings. Based on the similarity of the balance sheet structure between the
Comparable Group and the Bank, no adjustment is warranted for this measure.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 42
================================================================================
- -------------------------------------------------
ASSET QUALITY
- -------------------------------------------------
The asset quality of an institution is an important determinant of market value.
The investment community considers levels of nonperforming loans, REO and levels
of ALLL in assessing the attractiveness of investing in the common stock of an
institution.
FIGURE 32 - ASSET QUALITY TABLE
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter
-------------------------------------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/ Reserves/
Loans NPLs Assets Equity Loans NPAs + 90
Ticker Short Name (%) (%) (%) (%) (%) (%)
- -------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. NA NA NA NA 0.66 39.74
FLKY First Lancaster Bancshares 1.28 27.91 1.70 6.37 0.36 18.91
GLMR Gilmer Financial Svcs, Inc. 2.51 51.93 1.65 18.25 1.30 44.52
HBBI Home Building Bancorp 0.99 29.02 0.67 4.79 0.29 29.02
HWEN Home Financial Bancorp 1.06 81.67 1.32 7.36 0.86 53.55
LONF London Financial Corp. 0.26 238.16 0.20 1.46 0.62 238.16
MBSP Mitchell Bancorp Inc. 0.81 84.35 1.56 3.96 0.68 33.74
PWBK Pennwood Bancorp Inc. 1.09 99.40 0.74 4.06 1.09 44.68
RELI Reliance Bancshares Inc. 0.00 NM 0.00 0.00 0.60 NM
SCCB S. Carolina Community Bancshrs 1.42 57.34 1.26 6.17 0.82 50.34
- --------------------------------------------------------------------------------------------------------------
Average 1.05 83.72 1.01 5.82 0.73 61.41
Median 1.06 69.51 1.26 4.79 0.67 44.52
Maximum 2.51 238.16 1.70 18.25 1.30 238.16
Minimum 0.00 27.91 0.00 0.00 0.29 18.91
Farnsworth Bancorp, Inc. 0.94 46.99 0.69 11.96 0.44 46.99
Variance to the Comparable Median (0.12) (22.52) (0.57) 7.17 (0.23) 2.47
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
The Bank has a slightly lower level of non-performing loans ("NPL") to total
loans at 0.94% when compared to the Comparable Group at 1.06%. The Bank had a
non-performing assets to assets ratio of 0.69%, which is lower than the
Comparable median of 1.26%. The Bank's reserve levels, 46.99% of nonperforming
loans and 0.44% of total loans, are lower than the Comparable medians of 69.51%
of nonperforming loans and 0.67% of loans. The Bank's stronger asset quality is
mitigated by the Bank's low levels of reserves when compared to the Comparable
Group. As such, no adjustment is warranted for this element.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 43
================================================================================
- -------------------------------------------------
EARNINGS QUALITY, PREDICTABILITY AND GROWTH
- -------------------------------------------------
The earnings quality, predictability and growth are critical components in the
establishment of market values for thrifts. Thrift earnings are primarily a
function of:
o net interest income
o loan loss provision
o non-interest income
o non-interest expense
The quality and predictability of earnings is dependent on both internal and
external factors. Some internal factors include the mix of the balance sheet,
the interest rate sensitivity of the balance sheet, the asset quality, and the
infrastructure in place to deliver the assets and liabilities to the public.
External factors include the competitive market for both assets and liabilities,
the global interest rate scenario, local economic factors and regulatory issues.
Each of these factors can influence the earnings of an institution, and each of
these factors is volatile. Investors prefer stability and consistency. As such,
solid, consistent earnings are preferred to high but risky earnings. Investors
also prefer earnings to be diversified and not entirely dependent on interest
income.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 44
================================================================================
The Bank had a net loss of $20 thousand for the fiscal year ended September 30,
1996. This loss included a $192 thousand one-time deposit premium to
recapitalize SAIF ($121,000 thousand net of taxes). Excluding this non-recurring
expense, adjusted net income would have been $101 thousand. The annualized net
income for the six month period ending March 31, 1998 was $228 thousand. The
March 31, 1998 earnings were skewed by a collection on a deficiency judgement of
$54 thousand, $34 thousand on an after-tax basis. The adjusted annualized six
month net income for March 31, 1998, was $160 thousand.
FIGURE 33 - NET INCOME TREND
Sep-96 Sep-97 Sep-98
------ ------ ------
$(20) $192 $228
==== ==== ====
Sources: Offering Circular
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 45
================================================================================
If adjusted for the one-time collection of a deficiency, the Bank's ROAA and
ROAE would have been 0.42% and 7.32%, respectively. The adjusted return on asset
ratio is below the Comparable Group median, however, the adjusted return on
equity ratio is above the Comparable Group. The Bank's higher ROAE is partially
due to its low capital levels.
FIGURE 34 - PROFITABILITY DATA
<TABLE>
<CAPTION>
Profitability as of The Most Recent Quarter
--------------------------------------------
Return on Return on
Avg Assets Avg Equity
Ticker Short Name (%) (%)
- ------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C>
CSBF CSB Financial Group Inc. 0.54 2.25
FLKY First Lancaster Bancshares 1.04 3.46
GLMR Gilmer Financial Svcs, Inc. 0.06 0.59
HBBI Home Building Bancorp 0.75 5.70
HWEN Home Financial Bancorp 0.93 5.32
LONF London Financial Corp. 1.08 5.62
MBSP Mitchell Bancorp Inc. 1.43 3.50
PWBK Pennwood Bancorp Inc. 0.77 4.21
RELI Reliance Bancshares Inc. 1.02 2.06
SCCB S. Carolina Community Bancshrs 1.01 4.19
- --------------------------------------------------------------------------------------
Average 0.86 3.69
Median 0.97 3.85
Maximum 1.43 5.70
Minimum 0.06 0.59
Farnsworth Bancorp, Inc. 0.60 10.44
Variance to the Comparable Median (0.37) 6.60
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 46
================================================================================
FIGURE 35 - INCOME STATEMENT DATA
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
------------------------------------------------------------------------------------------
Net Non- Non-
Net Interest Interest Interest interest interest Over-
Interest Income/ Expense/ Income/ Income/ Expense/ Efficiency head
Margin Avg Assets Avg Assets Avg Assets Avg Assets Avg Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 3.56 6.87 3.43 3.45 0.22 2.73 70.93 69.07
FLKY First Lancaster Bancshares 4.50 8.27 3.84 4.43 0.00 2.58 58.27 58.27
GLMR Gilmer Financial Svcs, Inc. 2.78 7.50 4.74 2.76 0.51 2.41 73.93 69.11
HBBI Home Building Bancorp 3.54 7.56 4.14 3.43 0.25 2.50 68.18 65.89
HWEN Home Financial Bancorp 4.50 8.70 4.35 4.34 0.35 3.29 70.01 67.62
LONF London Financial Corp. 3.73 7.66 3.97 3.69 0.18 2.34 60.61 58.70
MBSP Mitchell Bancorp Inc. 5.04 7.72 2.85 4.87 0.01 2.41 49.27 49.18
PWBK Pennwood Bancorp Inc. 4.43 7.93 3.75 4.18 0.30 2.88 62.31 59.65
RELI Reliance Bancshares Inc. 5.04 7.46 2.62 4.84 0.05 3.28 67.11 66.79
SCCB S. Carolina Community Bancshrs 4.17 7.74 3.65 4.09 0.26 2.72 62.58 60.19
- ------------------------------------------------------------------------------------------------------------------------------------
Average 4.13 7.74 3.73 4.01 0.21 2.71 64.32 62.45
Median 4.30 7.69 3.80 4.14 0.24 2.65 64.85 63.04
Maximum 5.04 8.70 4.74 4.87 0.51 3.29 73.93 69.11
Minimum 2.78 6.87 2.62 2.76 0.00 2.34 49.27 49.18
Farnsworth Bancorp, Inc. 3.68 7.05 3.58 3.47 0.70 3.06 73.25 67.84
Variance to the Comparable Median (0.62) (0.64) (0.22) (0.67) 0.47 0.41 8.41 4.80
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
Compared to the Comparable Group, the Bank's yield on assets is 64 basis points
lower, the cost of funds is 22 basis points lower, noninterest income is 47
basis points higher (18 basis points if adjusted for the $54 thousand deficiency
judgement), and noninterest expense is 41 basis points higher, resulting in a 36
basis point disadvantage (65 basis points on an adjusted basis).
Taken collectively, the income of the Bank can be measured by the efficiency
ratio, where the Bank has a disadvantage of 8.41% as compared to the Comparable
median.
Currently, investors are focusing on earnings sustainability as the interest
rate volatility has caused wide a variation in income levels. With the intense
competition for both assets and deposits, banks can not easily replace lost
spread and margin with balance sheet growth.
Based on the Bank's historical earnings performance, a downward adjustment is
warranted to the market value for earnings.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 47
================================================================================
- -------------------------------------------------
MARKET AREA
- -------------------------------------------------
The market area that an institution serves has a significant impact on value, as
future success is interrelated with the economic, demographic and competitive
aspects of the market. Specifics on the Bank's market were delineated in Section
2 - Market Area Analysis. The following are discussions with respect to the
various data sets utilized for the market analysis
Demographic Data - Population in both of the Bank's markets have grown
between 1980 and 1990. However, Florence is projected to decline
through 2002 and Bordentown is projected to grow at a rate below the
state level. The population is slightly less educated than the state
but the median household income is slightly above the state level.
Competitive Data - The Bank's branches, as mentioned earlier, are
located in Florence and Bordentown. Deposits in the Florence market
have declined by 1.54% while deposits in Bordentown have grown by
11.19%. The average branch size in both markets is low.
Based on these factors no adjustment is warranted for this factor.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 48
================================================================================
- -------------------------------------------------
MANAGEMENT
- -------------------------------------------------
The Bank has developed a good management team with considerable banking
experience. The Bank's organizational chart is reasonable for an institution of
its size and complexity. The Board is active and oversees and advises on all key
strategic and policy decisions and holds the management to high performance
standards.
As such, no adjustment appears to be warranted for this factor.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 49
================================================================================
- -------------------------------------------------
DIVIDENDS
- -------------------------------------------------
Historically, banks have not established dividend policies immediately at or
after conversion to stock ownership. Rather, newly converted institutions, in
general, have preferred to establish an earnings track record, fully invest the
conversion proceeds, and allow for seasoning of the stock before establishing a
dividend policy. In the late 1980's and early 1990's however, there has been a
tendency toward initiating dividend policies concurrent with the conversion as a
means of increasing the attractiveness of the issue and to utilize the proceeds.
The last few years have seen yet another shift away from dividend policies
concurrent with conversion. Recent issues have been fully or oversubscribing
without the need for the additional enticement of dividends. After the
conversion is another issue, however. Recent pressures on ROE and on internal
rate of returns to investors has prompted the industry toward cash dividends.
This trend is exacerbated by the lack of growth potential. Typically, when
institutions are in a growth mode, they issue stock dividends or do not declare
a dividend. When growth is stunted, these institutions shift toward reducing
equity levels and thus utilize cash dividends as a tool in this regard.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 50
================================================================================
FIGURE 36 - DIVIDEND DATA
Dividends
-----------------------
Current LTM Dividend
Dividend Payout
Yield Ratio
Ticker Short Name ($) (%)
- --------------------------------------------------------------------------------
Comparable Thrift Data
CSBF CSB Financial Group Inc. 0.000 0.00
FLKY First Lancaster Bancshares 3.306 94.34
GLMR Gilmer Financial Svcs, Inc. 0.000 0.00
HBBI Home Building Bancorp 1.250 26.32
HWEN Home Financial Bancorp 1.096 22.22
LONF London Financial Corp. 1.574 609.30
MBSP Mitchell Bancorp Inc. 2.388 67.80
PWBK Pennwood Bancorp Inc. 1.929 49.04
RELI Reliance Bancshares Inc. 0.000 0.00
SCCB S. Carolina Community Bancshrs 2.943 83.78
- --------------------------------------------------------------------------------
Average 1.45 95.28
Median 1.41 37.68
Maximum 3.31 609.30
Minimum 0.00 0.00
Farnsworth Bancorp, Inc. NA NA
Variance to the Comparable Median NA NA
Sources: SNL and Offering Circular Data, FinPro Computations
Seven of the ten Comparable institutions had declared dividends. The median
dividend payout ratio for the Comparable Group was 37.67%, ranging from a high
of 609.30% to a low of 0.00%. The Bank on a pro forma basis (at the mid point of
the value range) will have an equity to assets ratio of 13.20% compared to the
Comparable Group's median of 19.36%. It will not therefore, be able to pay
dividends of 37% of earnings. A slight downward adjustment is indicated for this
factor.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 51
================================================================================
- -------------------------------------------------
LIQUIDITY OF THE ISSUE
- -------------------------------------------------
The Comparable Group is by definition composed only of companies that trade in
the public markets with all of the Comparables trading on NASDAQ. Typically, the
number of shares outstanding and the market capitalization provides an
indication of how much liquidity there will be in a given stock. The actual
liquidity can be measured by volume traded over a given period of time.
FIGURE 37 - MARKET CAPITALIZATION DATA
<TABLE>
<CAPTION>
Market Capitalization
--------------------------------------------------------------------------------------
MRQ MRQ LTM LTM MRQ Publicly MRQ Tangible
Market Price Price Price Reported Publicly Rep
Value Per Share High Low Book Value Book Value
Ticker Short Name ($) ($) ($) ($) ($) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 11.54 13.750 13.750 11.000 13.23 12.48
FLKY First Lancaster Bancshares 14.32 15.250 16.375 14.625 14.92 14.92
GLMR Gilmer Financial Svcs, Inc. 2.70 11.000 12.000 10.000 19.88 19.88
HBBI Home Building Bancorp 7.48 21.250 23.750 18.500 20.61 20.61
HWEN Home Financial Bancorp 8.48 8.750 9.750 7.375 8.03 8.03
LONF London Financial Corp. 7.78 16.750 21.000 14.000 10.23 10.23
MBSP Mitchell Bancorp Inc. 15.59 16.750 18.000 15.250 15.60 15.60
PWBK Pennwood Bancorp Inc. 10.28 16.125 16.500 10.313 12.59 12.59
RELI Reliance Bancshares Inc. 20.30 8.875 10.125 7.125 9.31 9.31
SCCB S. Carolina Community Bancshrs 12.61 21.625 25.250 17.500 16.28 16.28
- ------------------------------------------------------------------------------------------------------------------------------------
Average 11.11 15.01 16.65 12.57 14.07 13.99
Median 10.91 15.69 16.44 12.50 14.08 13.76
Maximum 20.30 21.63 25.25 18.50 20.61 20.61
Minimum 2.70 8.75 9.75 7.13 8.03 8.03
Farnsworth Bancorp, Inc. 4.15 10.00 NA NA 13.03 13.03
Variance to the Comparable Median (6.76) (5.69) NA NA (1.05) (0.73)
</TABLE>
Sources: SNL and Offering Circular Data, FinPro Computations
The market capitalization values of the Comparable Group range from a low of
$2.7 million to a high of $20.3 million with a median market capitalization of
$10.9 million. The Bank expects to have $4.2 million of market capital at the
midpoint on a pro forma basis.
Since the size of the offering is small, it is unlikely that an active and
liquid trading market will develop and be maintained. It is anticipated the Bank
will be traded on the OTC Bulletin Board. Therefore, a downward adjustment for
this factor appears warranted.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 52
================================================================================
- -------------------------------------------------
SUBSCRIPTION INTEREST
- -------------------------------------------------
Based on the stock appreciation for both thrift stocks and for the U.S. equity
market in general, the market for public offerings has attracted a significant
level of attention. The market for public offerings is driven by the lack of
supply of stocks to meet the demand created primarily by the growth of mutual
funds. Thrift IPO's have received a greater amount of attention due to the price
"pops" of recent standard conversions.
FIGURE 38 - RECENT STANDARD CONVERSION PERFORMANCE
<TABLE>
<CAPTION>
----------------------------------------------
Percent Change from IPO
----------------------------------------------
Gross After After After After
IPO Price Proceeds 1 Day 1 Week 1 Month 3 Months
Ticker Short Name IPO Date ($) ($000) (%) (%) (%) (%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CFKY Columbia Financial of Kentucky 04/15/98 10.000 26,715 71.25% 59.38% 60.00% NA
EFC EFC Bancorp Inc. 04/07/98 10.000 69,365 47.50% 49.38% 41.25% NA
HBSC Heritage Bancorp Inc. 04/06/98 15.000 69,431 NA 46.25% 45.83% NA
NEP Northeast PA Financial Corp. 04/01/98 10.000 59,515 55.00% 53.75% 54.38% NA
-------------------------------------------------------------------------------------------------------------------
Q2`98 Average 57.92% 52.19% 50.37% -
Median 55.00% 51.57% 50.11% -
-------------------------------------------------------------------------------------------------------------------
BYS Bay State Bancorp 03/30/98 20.000 46,949 46.88% 48.13% 50.63% NA
HLFC Home Loan Financial Corp. 03/26/98 10.000 22,483 52.50% 61.88% 67.50% NA
CAVB Cavalry Bancorp Inc. 03/17/98 10.000 75,383 105.63% 143.75% 140.00% NA
ICBC Independence Comm. Bank Corp. 03/17/98 10.000 704,109 72.50% 75.63% 81.25% NA
RCBK Richmond County Financial Corp 02/18/98 10.000 244,663 63.13% 64.38% 78.75% 87.50%
HFBC HopFed Bancorp Inc. 02/09/98 10.000 40,336 68.13% 60.00% 67.50% 118.75%
TSBK Timberland Bancorp Inc. 01/13/98 10.000 66,125 45.00% 60.00% 60.00% 76.25%
MYST Mystic Financial Inc. 01/09/98 10.000 27,111 44.38% 56.25% 50.00% 73.75%
UTBI United Tennessee Bankshares 01/05/98 10.000 14,548 47.50% 37.50% 42.50% 50.00%
-------------------------------------------------------------------------------------------------------------------
Q1`98 Average 60.63% 67.50% 70.90% 81.25%
Median 52.50% 60.00% 67.50% 76.25%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
1998 YTD Average 59.95% 62.79% 64.58% 81.25%
Median 53.75% 59.38% 60.00% 76.25%
-------------------------------------------------------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 12/31/97 10.000 21,821 61.25% 55.00% 48.75% 57.50%
UCBC Union Community Bancorp 12/29/97 10.000 30,418 46.88% 42.50% 42.50% 58.13%
WSBI Warwick Community Bancorp 12/23/97 10.000 64,141 56.25% 70.00% 56.25% 75.63%
SIB Staten Island Bancorp Inc. 12/22/97 12.000 515,775 58.86% 61.98% 59.90% 74.48%
HCBC High Country Bancorp Inc. 12/10/97 10.000 13,225 44.38% 50.63% 45.00% 50.00%
FSFF First SecurityFed Financial 10/31/97 10.000 64,080 50.63% 51.25% 60.63% 46.88%
OTFC Oregon Trail Financial Corp. 10/06/97 10.000 46,949 67.50% 63.75% 61.25% 67.50%
RVSB Riverview Bancorp Inc. 10/01/97 10.000 NA 31.88% 36.25% 32.50% 77.50%
SHSB SHS Bancorp Inc. 10/01/97 10.000 8,200 47.50% 62.50% 60.00% 67.50%
-------------------------------------------------------------------------------------------------------------------
Q4 `97 Average 51.68% 54.87% 51.86% 63.90%
Median 50.63% 55.00% 56.25% 67.50%
-------------------------------------------------------------------------------------------------------------------
OSFS Ohio State Financial Services 09/29/97 10.000 6,332 55.00% 53.70% 49.60% 52.50%
FSPT FirstSpartan Financial Corp. 07/09/97 20.000 88,608 83.44% 85.00% 78.13% 91.88%
GOSB GSB Financial Corp. 07/09/97 10.000 22,483 46.25% 48.75% 43.75% 55.00%
FBNW FirstBank Corp. 07/02/97 10.000 19,838 58.13% 55.63% 77.50% 72.50%
-------------------------------------------------------------------------------------------------------------------
Q3`97 Average 60.71% 60.77% 62.24% 67.97%
Median 56.57% 54.67% 63.55% 63.75%
-------------------------------------------------------------------------------------------------------------------
HCBB HCB Bancshares Inc. 05/07/97 10.000 26,450 26.25% 27.50% 28.75% 38.75%
PSFC Peoples-Sidney Financial Corp. 04/28/97 10.000 17,854 25.63% 28.75% 32.50% 55.00%
HMLK Hemlock Federal Financial Corp 04/02/97 10.000 20,763 28.75% 28.75% 30.00% 40.00%
GSLA GS Financial Corp. 04/01/97 10.000 34,385 33.75% 37.50% 40.00% 51.25%
-------------------------------------------------------------------------------------------------------------------
Q2 '97 Average 28.60% 30.63% 32.81% 46.25%
Median 27.50% 28.75% 31.25% 45.63%
-------------------------------------------------------------------------------------------------------------------
MRKF Market Financial Corp. 03/27/97 10.000 13,357 29.38% 22.50% 26.25% 37.50%
EFBC Empire Federal Bancorp Inc. 01/27/97 10.000 25,921 32.50% 35.00% 37.50% 31.25%
FAB FIRSTFED AMERICA BANCORP INC. 01/15/97 10.000 87,126 36.25% 41.25% 48.75% 38.75%
RSLN Roslyn Bancorp Inc. 01/13/97 10.000 423,714 50.00% 59.38% 60.00% 58.75%
AFBC Advance Financial Bancorp 01/02/97 10.000 10,845 28.75% 29.38% 40.00% 40.00%
-------------------------------------------------------------------------------------------------------------------
Q1 '97 Average 35.38% 37.50% 42.50% 41.25%
Median 32.50% 35.00% 40.00% 38.75%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
1997 Average 45.42% 47.59% 48.16% 56.28%
Median 46.57% 49.69% 46.88% 55.00%
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
1/1/97 toAverage 50.55% 53.24% 54.26% 60.91%
6/8/98 Median 47.50% 53.70% 50.00% 57.50%
-------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: SNL Securities, FinPro calculations
As illustrated, thrift stocks have appreciated substantially on the first day of
trading. Additionally, the vast majority of the recent conversions, have
oversubscribed and have closed at the supermaximum of the estimated value range.
As such, an upward adjustment for subscription interest is warranted at this
time.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 53
================================================================================
- -------------------------------------------------
RECENT REGULATORY MATTERS
- -------------------------------------------------
As a result of large after-market price increases of conversions during 1993 and
early 1994, the regulatory agencies have issued guidelines on appraisals for
conversions. The regulators publicly indicated that only modest immediate
after-market price increases are appropriate for converting institutions. The
guidelines issued November 22, 1994, indicate that the reasonableness and
adequacy of an appraisal will be partially judged by the immediate price
movement of the conversion stock in the after-market, using a very short time
frame of the second day of trading following closing. The guidelines further
discuss that the average price appreciation for all IPO's has been between 10%
and 15%, which was deemed to be too high.
At around the same time period, IPO pricing was elevated on a book basis and
IPO's in late 1994 did not experience much appreciation. In fact, numerous IPOs
actually depreciated. 1995 brought back lower premiums to book but they have
been rising throughout 1996 to approximately the same levels as late 1994. The
trend has continued in 1998 with IPO's popping over 50% on average, for the
first day of trading.
The recent interest in thrift IPO's has caused large oversubscriptions, which in
turn have caused large price appreciations in the aftermarket. Recently,
regulators have been indicating the need for increased pricing of new issues in
the attempt lessen the aftermarket appreciation. Also, regulators have been
concerned with capital redistributions from thrifts which have converted within
the past three years. Regulatory agencies are publicly indicating that they will
enforce the limits of stock buy backs to: 0% in the first year, 5% in the second
year and 5% in the third year.
This threat to newly converted institutions, of not being able to use all of the
capital markets tools available, will hurt the stock's attractiveness, as it
will put them at a significant competitive disadvantage to the rest of the
industry.
As such, a downward adjustment for this measure is warranted based on the
uncertainty surrounding the regulatory environment.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 54
================================================================================
- -------------------------------------------------
MARKET FOR SEASONED THRIFT STOCKS
- -------------------------------------------------
Data for all public thrifts as of June 8, 1998 is provided in Exhibit 8. A
common measure utilized as a proxy for the performance of the thrift industry is
the SNL thrift index graphically shown below and tabularly shown on the
following page:
FIGURE 39 - SNL THRIFT INDEX CHART
Jan-92 143.9
Jul-92 175.1
Jan-93 201.1
Jul-93 220.5
Jan-94 252.5
Jul-94 273.8
Jan-95 256.1
Jul-95 328.2
Jan-96 370.7
Jul-96 389.9
Jan-97 520.1
Jul-97 684.5
Jan-98 768.3
Jun-98 897.205
Source: SNL Securities
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 55
================================================================================
FIGURE 40 - HISTORICAL SNL INDEX
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
SNL THRIFT INDEX MONTHLY PERFORMANCE
January 2, 1992 to June 8, 1998
- -------------------------------------------------------------------------------------------------------------------------------
SNL % Change % Change % Change % Change % Change % Change % Change
Thrift Since Since Since Since Since Since Since
Date Index 1/2/92 1/4/93 1/3/94 12/30/94 12/29/95 12/31/96 12/31/97
---- ----- ------ ------ ------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Jan-92 143.9 - - - - - - -
Jul-92 175.1 21.7% - - - - - -
Jan-93 201.1 39.7% - - - - - -
Jul-93 220.5 53.2% 9.6% - - - - -
Jan-94 252.5 75.5% 25.6% - - - - -
Jul-94 273.8 90.3% 36.2% 8.4% - - - -
Jan-95 256.1 78.0% 27.3% 1.4% - - - -
Jul-95 328.2 128.1% 63.2% 30.0% 28.2% - - -
Jan-96 370.7 157.6% 84.3% 46.8% 44.7% - - -
Jul-96 389.9 171.0% 93.9% 54.4% 52.2% 5.2% - -
Jan-97 520.1 261.4% 158.6% 106.0% 103.1% 40.3% - -
Jul-97 684.5 375.7% 240.4% 171.1% 167.3% 84.7% 31.6%
Jan-98 768.3 433.9% 282.0% 204.3% 217.1% 104.1% 58.9% -5.6%
June 8, 1998 897.2 523.5% 346.1% 255.3% 270.3% 138.3% 85.5% 10.2%
</TABLE>
Source: SNL Securities
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 56
================================================================================
FIGURE 41 - EQUITY INDICES
[GRAPHIC OMITTED]
Index Comparisons
--------------------------------------------------
SNL S&P DJIA
--------------------------------------------------
6/30/94 269.6 444.3 3,625.0
12/30/94 244.7 459.3 3,834.4
6/30/95 313.5 544.8 4,556.1
12/29/95 376.5 615.9 5,117.1
6/28/96 387.2 670.6 5,654.6
12/31/96 483.6 740.7 6,448.3
6/30/97 624.5 885.2 7,672.8
12/30/97 814.1 970.4 7,903.0
6/8/98 897.2 1,115.7 9,069.6
--------------------------------------------
As the Figures 39 and 40 illustrate, the performance of the SNL index has been
robust through 1992, 1993, 1994 and 1995. The dip in the index, occurring in
late 1994, was the product of the interest rate rise during that period along
with the overall uneasiness in the stock market in general. The rate scenario
covering the same period as the SNL index can be seen in the following chart.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 57
================================================================================
FIGURE 42 - HISTORICAL RATES
[GRAPHIC OMITTED]
Source: Prudential Bache Securities
As the graph demonstrates, the rate rise in late 1994 correlates closely to the
fall in thrift prices. The drop in rates in 1995 was one of the primary drivers
of the rapid rise in the SNL index. During 1996, rates increased slightly and
then remained stable, fueling the rise in the conversion prices. 1997 has seen a
continuation of this trend, with the median IPO pricing at 71.1%, 71.4%, 72.5%,
and 76.6% of book value for the first, second, third, and fourth quarters of
1997, respectively, and 78.4% in the first quarter of 1998.
Thrift pricing in general was robust in 1995 due to the falling interest rates,
the industry consolidation and renewed earnings. Contrasting this view, in late
1994 investors faced shrinking spreads and margins due to rising rates and
consolidation that was tailing off and slowing down. The blockbuster level of
consolidations have led many investors to think that all institutions are fair
game for acquisitions and prices have risen accordingly.
As Figure 41 and 42 show, in 1997, the flat interest rate environment has
contributed to the appreciation in the SNL index. In addition, the market
continues to demonstrate evidence of acquisition speculation.
A downward adjustment for this measure is warranted, as the institution will
trade at a discount to the market until the capital is adequately invested.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 58
================================================================================
- -------------------------------------------------
ACQUISITION MARKET
- -------------------------------------------------
FIGURE 43 - DEALS FOR LAST THIRTEEN QUARTERS
<TABLE>
<CAPTION>
1995-2 1995-3 1995-4 1996-1 1996-2 1996-3 1996-4 1997-1 1997-2 1997-3 1997-4 1998-1 1998-2*
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Bank 85 92 80 79 87 91 82 66 79 102 94 85 72
Thrift 35 27 22 22 29 21 19 25 32 17 37 26 20
*1998-2 is deals through 6/08/98
</TABLE>
Source: SNL Securities
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 59
================================================================================
From 1994 through June 8, 1998, thrift deal prices remained high. Nationally,
all pricing multiples are up in 1998. Regionally, price to earnings, price to
book and price to tangible book are down, while price to assets and price to
deposits are up. Deals less than $10 million were priced at substantially lower
multiples.
FIGURE 44 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO BOOK
[GRAPHIC OMITTED]
FIGURE 45 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO TANGIBLE BOOK
[GRAPHIC OMITTED]
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 60
================================================================================
FIGURE 46 - THRIFT ACQUISITION MULTIPLES, PRICE TO EARNINGS
[GRAPHIC OMITTED]
FIGURE 47 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO ASSETS
[GRAPHIC OMITTED]
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 61
================================================================================
FIGURE 48 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO DEPOSITS
[GRAPHIC OMITTED]
FIGURE 49 - DEAL MULTIPLES
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Median Price to LTM Earnings 1995 1996 1997 1998 YTD
Thrifts - Nationwide 18.4 17.6 24.6 26.6
Thrifts - Mid-Atlantic 17.9 17.0 21.7 27.2
Thrifts - Deal Value less than $10 Million 23.9 18.9 37.0 26.6
Average Price to Book
Thrifts - Nationwide 144.7 149.5 185.2 215.8
Thrifts - Mid-Atlantic 156.5 156.9 212.5 206.2
Thrifts - Deal Value less than $10 Million 134.5 145.6 142.8 177.8
Average Price to Tangible Book
Thrifts - Nationwide 150.0 153.6 191.9 219.7
Thrifts - Mid-Atlantic 157.6 159.4 228.7 206.6
Thrifts - Deal Value less than $10 Million 135.0 145.6 144.3 178.2
Average Price to Assets
Thrifts - Nationwide 14.8 15.0 18.4 21.2
Thrifts - Mid-Atlantic 15.3 17.7 16.5 23.2
Thrifts - Deal Value less than $10 Million 12.1 14.0 15.5 13.2
Average Price to Deposits
Thrifts - Nationwide 19.2 19.9 24.9 29.1
Thrifts - Mid-Atlantic 20.3 24.5 26.1 32.0
Thrifts - Deal Value less than $10 Million 15.3 16.7 19.0 17.0
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 62
================================================================================
Currently, there are three thrift acquisitions pending in New Jersey. HUBCO Inc.
is in the process of acquiring IBS Financial Corp. IBS was priced at 187% of
book and 38.4X LTM earnings. Valley National Bank is purchasing Wayne Bancorp
for 200% of book value and 35.1X earnings. First Home Bancorp is being acquired
by Sovereign Bancorp for 235% of book and 18.2X earnings. The acquisition
multiples associated with all deals are shown below.
FIGURE 50 - ACQUISITION PREMIUM TABLE
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Price to Price to Price to Price to
Book Tangible Book Earnings Assets
(%) (%) (X) (%)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Announced National Merger Multiples
1998 YTD as of 6/8/98 215.8 219.7 26.6 21.2
All Public Thrift Median Trading Multiples
as of 6/8/98 154.1 157.4 19.9 18.7
Comparable Median Trading Multiples
as of 6/8/98 109.3 110.7 28.5 23.1
Acquisition Premium Over All Public Thrifts 40.04% 39.58% 33.67% 13.37%
Acquisition Premium Over Comparables 97.44% 98.46% -6.67% -8.23%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: SNL Securities, FinPro calculations
The "take-out" premium over thrifts appears to be approximately 30% to 40%. The
Comparables appear to be trading at acquisition earnings multiples and have
therefore capped the price to book multiples.
A downward adjustment is warranted for this factor, as the Bank will not be
readily available for acquisition immediately following the reorganization.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 63
================================================================================
- -------------------------------------------------
ADJUSTMENTS TO VALUE
- -------------------------------------------------
Overall, FinPro believes that the Bank pro-forma market value should be
discounted relative to the Comparable Group, reflecting the following
adjustments.
Key Valuation Parameters Valuation Adjustment
- ----------------------------------------------------------- --------------------
Balance Sheet Strength No Adjustment
Asset Quality No Adjustment
Earnings Quality, Predictability and Growth Downward
Market Area No Adjustment
Management No Adjustment
Dividends Slight Downward
Liquidity of the Issue Downward
Subscription Interest Upward
Recent Regulatory Matters Downward
Market for Seasoned Thrift Stocks Downward
Acquisition Market Downward
As a result of all the factors discussed, a full offering discount of
approximately 50% on an earnings multiple basis and a 35% discount on a price to
book basis appears to be reasonable.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 64
================================================================================
- -------------------------------------------------
VALUATION APPROACH
- -------------------------------------------------
In applying the accepted valuation methodology promulgated by the regulators,
i.e., the pro-forma market value approach, four key pricing multiples were
considered. The four multiples include:
Price to earnings ("P/E")
Price to tangible book value ("P/TB")
Price to book value ("P/B")
Price to assets ("P/A")
All of the approaches were calculated on a pro-forma basis including the effects
of the conversion proceeds. All of the assumptions utilized are presented in
Exhibits 10.
To ascertain the pro-forma estimated market value of the Bank, the market
multiples for the Comparable Group, all publicly traded thrifts and the recent
(1997 to date) standard conversions were assessed.
Since thrift earnings in general have had a high degree of volatility over the
past decade, the P/B approach had gained in importance and is utilized
frequently as the benchmark for market value. It is interesting to note that the
P/B approach is more of a benchmark than a reliable valuation technique. A
better approach is the P/TB approach. In general, investors tend to price
financial institutions on a tangible book basis, because it incorporates the P/B
approach adjusted for intangibles. Most recently, the P/E approach has regained
favor among investors.
The evidence of the movement towards the P/E Multiple can be seen in the
acquisition, trading and IPO markets. The P/LTM EPS multiple for the completed
mergers is 24.4x, for all public thrifts the trading P/LTM EPS is 19.9x and for
recent standard conversions is 17.4x.
As such, in estimating the market value for the Bank, the most emphasis was
placed on the P/E approach. The P/B and P/TB were given much less weight and the
P/A ratio was not given much weight at all.
In terms of the market multiples, most weight was given to the Comparable Group.
The second highest weight was afforded to recent standard conversions. Less
weight was ascribed to all public thrifts and all New Jersey thrifts. The
multiples for the Comparable Group, all publicly traded thrifts, and New Jersey
publicly traded thrifts are shown in Exhibit 8.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 65
================================================================================
Based upon the premiums and discounts defined in the section above, the Bank
pricing at the midpoint is estimated to be $4,150,000. Based upon a range below
and above the midpoint value, the relative values are $3,527,500 at the minimum
and $4,772,500 at the maximum respectively. At the supermaximum of the range the
offering value would be $5,488,380.
At the various levels of the estimated value range, the offering would result in
the following offering data:
FIGURE 51 - VALUE RANGE OFFERING DATA
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
Appraised Value
-----------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Exchanged 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Shares Issued to Foundation - - - -
Total Shares 352,750 415,000 477,250 548,838
Exchange Shares - - - -
Conversion Shares 352,750 415,000 477,250 548,838
Implied Exhange Ratio - - - -
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
-----------------------------------------------------------------------
</TABLE>
Source: FinPro Inc. Pro forma Model
FIGURE 52 - VALUE RANGE OFFERING DATA
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Bank Comparables State National
--------------------------------------------------------------------------------
Mean Median Mean Median Mean Median
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Min 12.82
Price-Earnings Ratio P/E Mid 14.49 37.51 28.47 20.98 18.64 23.33 19.93
- ------------------------ Max 15.87
Smax 17.86
Min 72.52%
Price-to-Book Ratio P/B Mid 76.75% 109.97% 109.29% 177.76% 164.97% 171.31% 154.11%
- ----------------------- Max 80.06%
Smax 83.33%
Min 72.52%
Price-to-Tangible Book Ratio P/TB Mid 76.75% 110.59% 110.69% 183.84% 166.50% 178.18% 157.39%
- --------------------------------- Max 80.06%
Smax 83.33%
Min 8.73%
Price-to-Assets Ratio P/A Mid 10.14% 25.36% 23.11% 18.42% 16.83% 20.51% 18.69%
- ------------------------- Max 11.50%
Smax 13.03%
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 66
================================================================================
This equates to the following multiples:
FIGURE 53 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA MIDPOINT
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Price Relative to
---------------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at midpoint) 12.20 13.70 74.85% 74.85% 9.88%
- ------------------------------------------------------------------------------------------------------------------------
Comparable Group Average 28.47 27.16 109.29% 110.69% 23.11%
- ------------------------------------------------------------------------------------------------------------------------
(Discount) Premium -57.15% -49.56% -31.51% -32.38% -57.25%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
FIGURE 54 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA SUPERMAXIMUM
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
Price Relative to
----------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at the supermax) 15.15 16.95 81.63% 81.63% 12.71%
- -------------------------------------------------------------------------------------------------------------------
Comparable Group Average 28.47 27.16 109.29% 110.69% 23.11%
- -------------------------------------------------------------------------------------------------------------------
(Discount) Premium -46.79% -37.59% -25.31% -26.25% -45.00%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
As figure 53 demonstrates, the Bank is priced at a discount of 49.56% on a core
earnings basis. A discount of 31.51% is applied to the Bank relative to the
Comparable Group on a price to book basis.
Recently, thrift public offerings have been over-subscribing and have been
closing at the supermaximum of the estimated value range. Therefore, a more
meaningful comparison would be the Bank's multiples at the supermaximum of the
EVR to the Comparable Group. Figure 54 shows the Bank (at the supermaximum) is
priced at a 37.59% discount on a core earnings basis and at a 25.31% discount on
a book basis.
The Bank (at the midpoint of the EVR) is priced at a 1.51% discount on a book
basis and at a 29.89% discount to unadjusted earnings, when compared to recent
standard conversions.
FIGURE 55 - RECENT STANDARD CONVERSIONS TRADING MULTIPLES TO THE BANK'S PRO
FORMA MIDPOINT
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
Price Relative to
--------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at midpoint) 12.20 13.70 74.85% 74.85% 9.88%
- -------------------------------------------------------------------------------------------------------------------
Recent Standard Conversions 17.40 NA 76.00% 76.00% 19.20%
- -------------------------------------------------------------------------------------------------------------------
(Discount) Premium -29.89% NA -1.51% -1.51% -48.54%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 67
================================================================================
As the core earnings for recent standard conversions is not available, it is not
possible to compare the earnings multiple for the midpoint or supermaximum,
however, the Bank's pro forma core earnings multiple at the supermaximum, when
compared to the recent standard conversion earnings multiple represents a
discount of 2.65% ((16.95-17.40)/16.95) and is offset by the premium, at the
supermaximum, of 7.41% on a book basis.
FIGURE 56 - RECENT STANDARD CONVERSION TRADING MULTIPLES TO THE BANK'S PRO
FORMA SUPERMAXIMUM
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Price Relative to
-------------------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at the supermax) 15.15 16.95 81.63% 81.63% 12.71%
- ----------------------------------------------------------------------------------------------------------------------------------
Recent Standard Conversions 17.40 NA 76.00% 76.00% 19.20%
- ----------------------------------------------------------------------------------------------------------------------------------
(Discount) Premium -12.93% NA 7.41% 7.41% -33.80%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 68
================================================================================
- -------------------------------------------------
VALUATION CONCLUSION
- -------------------------------------------------
It is, therefore, our opinion that as of June 12, 1998, the estimated pro-forma
market value of the Bank in a full offering was $4,150,000 at the midpoint of a
range with a minimum of $3,527,500 to a maximum of $4,772,500 at 15% below and
15% above the midpoint of the range respectively. Assuming an adjusted maximum
value of 15% above the maximum value, the adjusted maximum value or supermaximum
value in a full offering is $5,488,380. The stock will be issued at $10.00 per
share.
Pro-forma comparisons of the Bank's value range with the Comparable Group, all
public thrifts, New Jersey public thrifts and the recent standard conversion
group is shown in Exhibit 10.
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 1
ABOUT THE FIRM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
FinPro, Inc. was established in 1988 as a full service LISTING OF SERVICES
management consulting firm specializing in providing -------------------
advisory services to the Financial Institutions Industry.
FinPro provides management advisory services for Banks, FinPro offers a full array of products and services
Thrifts, Finance Companies and NonBank Banks. including:
Additionally, FinPro has performed work for the Federal
Bankruptcy Court, Federal Deposit Insurance Corporation, PLANNING
Office of Thrift Supervision and the Resolution Trust
Corporation. FinPro is recognized as an expert in banking Budgeting
and in loan analysis by the Federal Bankruptcy Court. Segment Planning
Strategic and Business Planning
FinPro is independently owned, not associated or
affiliated with any transaction oriented firm. This ASSET/LIABILITY MANAGEMENT
provides FinPro with an unbiased platform from which to
make analytical recommendations. FinPro believes that a CAPITAL MARKETS
client deserves to be told of all the alternatives, along
with their associated benefits and downsides and that a Corporate Finance
decision should be made on its merits. This uniquely Deposit Studies and Valuations
positions FinPro as an objective third party willing to Mergers and Acquisitions
suggest the unpopular strategies, unlike its competitors
who rely on a transaction to get paid. VALUATION
FinPro is headquartered in Liberty Corner, New Jersey and Bank Appraisals and Fairness Opinions
has a branch office in Buffalo, New York. Bank Valuations and Franchise Value Enhancement
FinPro principals are frequent speakers and presenters at MARKET RESEARCH
financial institution trade association functions. In
addition, FinPro designed the Statistical Report Analysis Branch Acquisitions, Sales Consolidations, Swaps and
currently produced quarterly by the New Jersey Community Applications
and Savings Bankers for its members. FinPro also Branch and Product Profitability
regularly hosts President's Breakfast for Presidents of Branch Network Evaluations
New Jersey Community Banks. Competitive Analysis and Positioning
Customer Segmentation and Profiling
FinPro maintains a library of databases encompassing bank
and thrift capital markets data, census data, branch MARKET FEASIBILITY STUDIES
deposit data, national peer data, market research data
along with many other related topics. As such, FinPro can Market Studies and Market Area Evaluations
provide quick, current and precise analytical assessments Site Studies
based on timely data. In addition, FinPro's geographic
mapping capabilities give it a unique capability to COMPLIANCE
thematically illustrate multiple issues and to provide
targeted marketing opportunities to its clients. Compliance Reviews
Geocoding of Loans and Deposits
FinPro has also designed and built PC-based software Portfolio Due Diligence
programs to utilize as tools in its work. Examples
include: LOAN REVIEW
o A proprietary software program (LaRS [R]) to perform
loan review analytics. CRA ANALYSIS AND IMPROVEMENT
o A duration based asset/liability model.
o A five year strategic planning, three year business FINANCIAL
planning, and one year budgetary model that completely
simulates an entire institution. Balance Sheet Restructuring
o A branch and product profitability model. Earnings Improvement Studies
o A market performance grid and branch improvement grid
model. OPERATIONS
o A criteria based market feasibility model. Financial Reporting
Using systems such as these, FinPro provides
state-of-the-art end products in all of its product and
service areas.
</TABLE>
- --------------------------------------------------------------------------------
FINPRO P.O. Box 323 - LIBERTY CORNER - NJ - 07938
PHONE: 908 / 604-9336
[LOGO] FAX: 908 / 604-5951
E-MAIL: [email protected]
WEBSITE: FINPRONJ.COM
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 1
ABOUT THE FIRM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Donald founded FinPro, Inc. in 1987 as a consulting and investment banking firm
located in New Jersey that specializes in providing advisory services to the
financial institutions industry.
Mr. Musso has a broad background in capital markets, bank valuations, enhancing [GLOBE GRAPHIC OMITTED]
franchise value, corporate finance, mergers and acquisitions, asset/liability
management, strategic planning, market feasibility and differentiation, branch
acquisition, sales, consolidation and profitability, financial modeling and
analysis, balance sheet restructuring, product and segment profitability,
business development and project management. Besides his consulting experience,
he has solid industry experience, having worked for two $10 billion plus east
coast financial institutions. DONALD J. MUSSO
Mr. Musso has provided expert testimony on financial institutions matters for MANAGING DIRECTOR AND PRESIDENT
the Federal Bankruptcy Court, the Office of Thrift Supervision and the United
States Attorney's Office.
He is a frequent speaker on Financial Institution related topics and has
assisted trade groups in various activities. Mr. Musso is also on the faculty of
Stonier Graduate School of Banking, teaching Strategic Planning.
Prior to establishing FinPro, Donald had direct industry experience having
managed the Corporate Planning and Mergers and Acquisitions departments for
Meritor Financial Group, a $20 billion institution in Philadelphia. Before that,
he had responsibility for the banking, thrift and real estate consulting
practice in the State of New Jersey for Deloitte Haskins & Sells.
Donald has a B.S. in Finance from Villanova University and a M.B.A. in Finance
from Fairleigh Dickinson University.
</TABLE>
- --------------------------------------------------------------------------------
FINPRO P.O. Box 323 - LIBERTY CORNER - NJ - 07938
PHONE: 908 / 604-9336
[LOGO] FAX: 908 / 604-5951
E-MAIL: [email protected]
WEBSITE: FINPRONJ.COM
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 1
ABOUT THE FIRM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Steve joined FinPro in 1989 and is one of the founding members of the firm.
Steve manages the FinPro office in Western New York and is responsible for
managing many strategic planning, loan review, market feasibility and CRA [GLOBE GRAPHIC OMITTED]
engagements.
Steve has extensive experience in performing a wide array of consulting services
including strategic planning engagements, market feasibility studies, branch
profitability analysis, CRA analysis and loan review and work-out. In addition,
Steve has a broad background in market research and analysis.
Steve is responsible for the development of FinPro's market feasibility, CRA and STEVEN P. MUSSO
Loan Review products. Additionally he is responsible for the integration of
sophisticated analytical tools such as mapping software into the FinPro MANAGING DIRECTOR
processes.
Steve is a licensed real estate agent in New Jersey and prior to joining FinPro
he practiced real estate in Philadelphia, Pennsylvania.
Mr. Musso has a B.S. in Finance from Syracuse University.
</TABLE>
- --------------------------------------------------------------------------------
FINPRO P.O. Box 323 - LIBERTY CORNER - NJ - 07938
PHONE: 908 / 604-9336
[LOGO] FAX: 908 / 604-5951
E-MAIL: [email protected]
WEBSITE: FINPRONJ.COM
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 1
ABOUT THE FIRM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Ken joined the firm in 1996, bringing with him twelve years of banking and
securities experience.
Mr. Emerson has concentrated on bank valuations, strategic plans, market [GLOBE GRAPHIC OMITTED]
feasibility studies, and branch profitability. His experience with respect to
accounting, reporting, and information systems serve him well in this capacity.
Ken's prior employers include Summit Bancorp, Valley Savings Bank, Howard
Savings Bank, Carteret Mortgage Company, CIT Data Corp., and Mahler & Emerson
Inc. Ken has managed financial reporting departments, complying with the KENNETH G. EMERSON, CPA
regulatory reporting requirements of the FRB, FDIC, OTS, State of New Jersey
Department of Banking, SEC, and NASD. Additional responsibilities have included DIRECTOR
asset/liability, cash, back office, operations, objective and LAN management and
shareholder reporting, budgeting, acquisitions, sales, conversions, interfaces,
and FASB implementation.
Ken is a frequent speaker on Financial Institution related topics and is a
member of the AICPA and NJSCPA.
Mr. Emerson has a B.A. in Accounting from Franklin & Marshall College and is a
licensed CPA in the state of New Jersey.
</TABLE>
- --------------------------------------------------------------------------------
FINPRO P.O. Box 323 - LIBERTY CORNER - NJ - 07938
PHONE: 908 / 604-9336
[LOGO] FAX: 908 / 604-5951
E-MAIL: [email protected]
WEBSITE: FINPRONJ.COM
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 1
ABOUT THE FIRM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Dennis joined the firm in June of 1996.
Dennis has refined FinPro's interest rate risk product and currently manages all
of the Firm's interest rate risk engagements. Additionally, he has concentrated
on merger and acquisition transactions, divestitures, shareholder value [GLOBE GRAPHIC OMITTED]
enhancements and has designed and built FinPro's acquisition opportunity ranking
model. Conversion appraisals, market feasibility, competitive analysis, branch
profitability and branch sales/acquisitions are other areas of specialization. DENNIS E. GIBNEY
Prior to joining the firm, Dennis received broad based experience in the SENIOR FINANCIAL ANALYST
securities industry. He worked for Merrill Lynch & Company supporting their
Mortgage-Backed trading desk in New York, as an Allocations Specialist and for
Sandler O'Neill & Partners, where he provided sales and trade support.
He received a B.S. from Babson College with a triple-major in Finance,
Investments and Economics.
</TABLE>
- --------------------------------------------------------------------------------
FINPRO P.O. Box 323 - LIBERTY CORNER - NJ - 07938
PHONE: 908 / 604-9336
[LOGO] FAX: 908 / 604-5951
E-MAIL: [email protected]
WEBSITE: FINPRONJ.COM
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 1
ABOUT THE FIRM
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Jeff joined the firm in March of 1998, although he has worked with the firm as
an intern since December of 1992. [GLOBE GRAPHIC OMITTED]
Over the years, Mr. Hammill has concentrated on loan reviews, market feasibility
studies, site studies, market research, and market tours. He is currently JEFFREY S. HAMMILL
creating a continuing marketing program that assists institutions in identifying
local businesses and retail customer segments to target to gain new accounts. SENIOR ANALYST
Jeff also compiles background chapters for strategic and business plans.
Mr. Hammill has a B.S. in Agricultural Engineering from the University of
Illinois and is a licensed commercial pilot and flight instructor.
</TABLE>
- --------------------------------------------------------------------------------
FINPRO P.O. Box 323 - LIBERTY CORNER - NJ - 07938
PHONE: 908 / 604-9336
[LOGO] FAX: 908 / 604-5951
E-MAIL: [email protected]
WEBSITE: FINPRONJ.COM
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Exhibit 2
- ----------------------------------------------------------------------------------------------------------------
Peoples Savings Bank
OTS Docket # : 07195
TFR Schedule SO and Audited Income Statement Reconciliation
For the Twelve Months Ended March 31, 1998
(Dollars in thousands) Financial
Statement
Description TFR Description Income
- ----------- --- ----------- ---------
<S> <C> <C> <C> <C>
6/30/97 SO Net Income $ 56 Six Months Ended 3/31/98 $ 114
9/30/97 SO Net Income 74 Less Six Months Ended 3/31/97 (62)
12/31/97 SO Net Income 86 Twelve Months Ended 12/31/97 192
(Revised) 3/31/98 SO Net Income 28
---------- -----------
Twelve Months Ended 12/31/97 $ 244 Twelve Months Ended 12/31/97 $ 244
Difference -
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 3
Consolidated Statements of Financial Condition
- --------------------------------------------------------------------------------------------------------------------------------
Assets March 31, September 30,
------ --------------------------------------------------------
1998 1997 1996
--------------------------------------------------------
(Unaudited)
<S> <C> <C> <C>
Assets:
- -------
Cash and due from banks $ 474,699 $ 1,282,390 $ 121,898
Interest-bearing deposits with banks 2,449,766 1,082,151 361,404
----------- ---------- ----------
Total cash and cash equivalents 2,924,465 2,364,541 483,302
Securities available for sale 128,278 95,992 65,995
Securtities held to maturity 2,758,440 3,755,516 5,400,707
Mortgage backed and related securities held to maturity 2,539,703 3,016,352 2,780,512
Loans receivable, net 28,280,451 26,408,713 23,261,013
Accrued interest receivable 237,569 247,263 257,344
Federal Home Loan Bank of New York stock
at cost substantially restricted 261,300 234,100 234,100
Premises and equipment 1,466,145 1,463,866 1,499,991
Foreclosed real estate - - 297,690
Other assets 88,757 32,263 81,542
----------- ----------- -----------
Total Assets $ 38,685,108 $ 37,618,606 $ 34,362,196
=========== =========== ===========
Liabilities and retained earnings
---------------------------------
Liabilities:
- ------------
Deposits $ 36,088,181 35,196,576 29,569,883
Advances by borrowers for taxes and insurance 164,684 157,843 151,907
Accrued income taxes 128,124 84,594 8,526
Accrued interest payable 53,762 50,789 71,271
Accounts payable and other accrued expences 25,041 40,313 246,696
Federal Home Loan Bank advances - - 2,435,291
----------- ---------- ----------
Total liabilities 36,459,792 35,530,115 32,483,574
Commitments and contingencies - - -
----------- ---------- ----------
Retained Earnings:
- ------------------
Partially restricted 2,142,856 2,029,176 1,837,269
Net unrealized appreciation available for sale securities net of taxes 82,460 59,315 41,353
----------- ---------- ----------
Total retained earnings 2,225,316 2,088,491 1,878,622
----------- ---------- ----------
Total liabilities and retained earnings $ 38,685,108 $37,618,606 $34,362,196
============ ========== ==========
- --------------------------------------------------------------------------------------------------------------------------------
Source: Audited Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit 4
Consolidated Statements of Income
$ in 000's
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Ended March 31, Years Ended December 31,
1998 1997 1997 1996
------------------------------- -------------------------------
Unaudited
-------------------------------
<S> <C> <C> <C> <C>
Interest income:
Loans receivable $1,106,434 $ 976,936 $2,034,408 $1,778,091
Securities available-for-sale 9,346 8,062 21,049 66,236
Securities to be held-to-maturity 125,746 196,733 402,617 350,515
Mortgage-backed securities to be held-to-maturity 90,990 80,895 176,755 173,957
--------- --------- --------- ---------
Total interest income 1,332,516 1,262,626 2,634,829 2,368,799
Interest Expense
Deposits 676,511 625,839 1,328,640 1,186,639
Federal Home Loan Bank Advances 500 62,012 80,443 35,282
--------- --------- --------- ---------
Total interest expense 677,011 687,851 1,409,083 1,221,921
Net interest income 655,505 574,775 1,225,746 1,146,878
Provision for loan losses 59,000 4,000 8,000 12,500
--------- --------- --------- ---------
Net interest income after Provision for loan losses 596,505 570,775 1,217,746 1,134,378
Noninterest income:
Fees and other service charges 77,913 79,404 148,251 109,791
Collection on Deficiency Judgement 54,024 - - -
Gain (loss) on sale of assests - - (1,757) (501)
Income from REO - - 7,966 -
Net realized gains on sale of available-for-sale securities 933 - 6,977 1,791
--------- --------- --------- ---------
Total non-interest income: 132,870 79,404 161,437 111,081
--------- --------- --------- ---------
Noninterest expense:
Compensation and benefits 258,952 260,249 513,966 482,335
Occupancy and equipment 114,274 108,256 217,985 219,499
Federal insurance premiums and assessments 17,205 23,709 40,339 275,740
Other 187,219 174,116 333,646 309,964
--------- --------- --------- ---------
Total non-interest expense 577,650 566,330 1,105,936 1,287,538
Income (loss) before provision for income taxes 151,725 83,849 273,247 (42,079)
Provision for income taxes 38,045 22,000 81,340 (21,960)
--------- --------- --------- ---------
Net income $ 113,680 $ 61,849 $ 191,907 $ (20,119)
========= ========= ========= =========
Source: Audited Financial Statements
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit 5
Consolidated Statements of Changes in Net Worth
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Net Unrealized
Appreciation on Total
Retained Securities Retained
Earnings AFS, Net of Tax Earnings
-------- --------------- --------
<S> <C> <C> <C>
Balance at September 30, 1995 $ 1,857,388 $ 24,675 $ 1,882,063
Net income (20,119) - (20,119)
Change in unrealized appreciation on securities -
available-for-sale, net of tax - 16,678 16,678
--------- --------- ---------
Balance at September 30, 1996 1,837,269 41,353 1,878,622
Net income 191,907 - 191,907
Change in unrealized appreciation on securities
available-for-sale, net of tax - 17,962 17,962
--------- --------- ---------
Balance at September 30, 1997 (unaudited) 2,029,176 59,315 2,088,491
Net income (unaudited) 113,680 - 113,680
Change in unrealized appreciation on securities
available-for-sale, net of tax (unaudited) - 23,145 23,145
--------- --------- ---------
Balance at March 31, 1998 (unaudited) $ 2,142,856 $ 82,460 $ 2,225,316
- --------------------------------------------------------------------------------------------------------------------
Source: Audited Financial Statements
</TABLE>
<PAGE>
Exhibit 6
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Ended For the Years Ended
March 31, December 31,
-------------------------------------------------
1998 1997 1997 1996
-------------------------------------------------
Unaudited
----------------------
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 113,680 $ 61,849 $ 191,907 $ (20,119)
------------ ---------- ----------- ----------
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 27,159 25,576 57,264 53,107
Net (gain) loss on sale of assets (933) - 5,220 1,290
Decrease (increase) in accrued interest receivable 9,694 4,179 10,081 (2,722)
Decrease (increase) in prepaid expenses and other assets (56,494) 32,088 49,279 (34,248)
Increase (decrease) in advances from borrowers 6,841 (13,426) 5,936 27,673
Increase (decrease) in accrued income taxes 43,530 7,065 76,068 (84,040)
Increase (decrease) in accrued interest payable 2,973 (1,258) (20,482) (22,261)
Increase (decrease) in other accrued liabilities (15,272) (191,338) (206,383) 123,260
------- --------- -------- -------
Total adjustments 17,498 (137,114) (23,017) 62,059
------- --------- -------- -------
Net cash provided by operations 131,178 (75,265) 168,890 41,940
------- --------- -------- -------
Cash flows from investing activities:
Net increase in interest-bearing deposits with banks (1,367,615) (3,930,003) (720,747) (361,404)
Net increase in loans receivable (1,871,738) (1,185,392) (3,147,700) (2,634,265)
Redemption (purchase) of securities, to be held to maturity 1,464,384 809,445 1,384,394 (2,187,347)
Purchase of securities, available for sale (996,875) - (1,215,742) (1,000,000)
Proceeds from sale of securities, available for sale 997,808 - 1,219,685 4,500,625
Purchase of Federal Home Loan Bank stock (27,000) - - (78,800)
Proceeds from sale of real estate owned - 168,378 297,690 -
Purchase of premises and equipment (29,438) 5,590 (17,380) (47,527)
--------- --------- --------- ----------
Net cash provided by investing activities (1,830,474) (4,131,982) (2,199,800) (1,808,718)
--------- --------- --------- ----------
Cash flows from financing activities:
Increase (decrease) in savings accounts and demand deposits 891,605 367,887 3,074,729 (109,197)
Net increase (decrease) in certificates of deposit - - 2,551,964 (1,642,550)
Federal Home Loan Bank Advance (repayment) - (935,291 (2,435,291) 2,435,291
--------- --------- --------- ---------
Net cash provided by financing activities 891,605 4,432,596 3,191,402 683,544
--------- --------- --------- ---------
Net increase (decrease) in cash and due from banks (807,691) 225,349 1,160,492 (1,083,234)
Cash at beginning of period 1,282,390 131,898 121,898 1,205,132
--------- --------- ----------- ---------
Cash at end of period $ 474,699 $ 357,247 $ 1,282,390 $ 121,898
========= ========= ========== =========
Supplemental disclosure:
Cash paid during the period for:
Interest $ 694,520 $ 389,109 $ 1,429,565 $1,244,183
========= ========= ========== =========
Income taxes $ 6,500 $ 45,255 $ 2,055 $ 45,295
========= ========= ========== =========
Loans receivable transferred to foreclosed real estate $ - $ - $ - $ 164,794
========= ========= ========== =========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Audited Financial Statements
<PAGE>
Page 1 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank Private San Francisco CA 225 NA SAIF Not Avail.
%CCMD Chevy Chase Bank, FSB Private Chevy Chase MD 128 NA SAIF Not Avail.
AABC Access Anytime Bancorp Inc. NASDAQ Clovis NM 3 08/08/86 SAIF Regular
ABBK Abington Bancorp Inc. NASDAQ Abington MA 9 06/10/86 BIF Regular
ABCL Alliance Bancorp NASDAQ Hinsdale IL 14 07/07/92 SAIF Regular
ABCW Anchor BanCorp Wisconsin NASDAQ Madison WI 35 07/16/92 SAIF Regular
AFBC Advance Financial Bancorp NASDAQ Wellsburg WV 2 01/02/97 SAIF Regular
AFCB Affiliated Community Bancorp NASDAQ Waltham MA 13 10/19/95 SAIF Not Avail.
AFED AFSALA Bancorp Inc. NASDAQ Amsterdam NY 6 10/01/96 SAIF Regular
AHCI Ambanc Holding Co. NASDAQ Amsterdam NY 12 12/27/95 BIF Regular
AHM H.F. Ahmanson & Co. NYSE Irwindale CA 462 10/25/72 SAIF Regular
ALBC Albion Banc Corp. NASDAQ Albion NY 2 07/26/93 SAIF Regular
ALBK ALBANK Financial Corp. NASDAQ Albany NY 108 04/01/92 SAIF Regular
ALLB Alliance Bank (MHC) NASDAQ Broomall PA 7 03/03/95 SAIF Mutual HC
AMFC AMB Financial Corp. NASDAQ Munster IN 4 04/01/96 SAIF Regular
ANA Acadiana Bancshares Inc. AMSE Lafayette LA 5 07/16/96 SAIF Regular
ANDB Andover Bancorp Inc. NASDAQ Andover MA 12 05/08/86 BIF Regular
ANE Alliance Bncp of New England AMSE Vernon CT 7 12/19/86 BIF Regular
ASBI Ameriana Bancorp NASDAQ New Castle IN 9 03/02/87 SAIF Regular
ASBP ASB Financial Corp. NASDAQ Portsmouth OH 1 05/11/95 SAIF Regular
ASFC Astoria Financial Corp. NASDAQ Lake Success NY 61 11/18/93 SAIF Regular
ATSB AmTrust Capital Corp. NASDAQ Peru IN 2 03/28/95 SAIF Regular
AVND Avondale Financial Corp. NASDAQ Chicago IL 5 04/07/95 SAIF Regular
BANC BankAtlantic Bancorp Inc. NASDAQ Fort Lauderdale FL 65 11/29/83 SAIF Regular
BDJI First Federal Bancorp. NASDAQ Bemidji MN 5 04/04/95 SAIF Regular
BFD BostonFed Bancorp Inc. AMSE Burlington MA 10 10/24/95 SAIF Regular
BFFC Big Foot Financial Corp. NASDAQ Long Grove IL 3 12/20/96 SAIF Regular
BFSB Bedford Bancshares Inc. NASDAQ Bedford VA 3 08/22/94 SAIF Regular
BKC American Bank of Connecticut AMSE Waterbury CT 14 12/01/81 BIF Regular
BKCT Bancorp Connecticut Inc. NASDAQ Southington CT 3 07/03/86 BIF Regular
BKUNA BankUnited Financial Corp. NASDAQ Coral Gables FL 19 12/11/85 SAIF Regular
BNKU Bank United Corp. NASDAQ Houston TX 80 08/09/96 SAIF Not Avail.
BPLS Bank Plus Corp. NASDAQ Los Angeles CA 38 NA SAIF Not Avail.
BRKL Brookline Bancorp (MHC) NASDAQ Brookline MA 5 03/25/98 BIF Mutual HC
BTHL Bethel Bancorp NASDAQ Portland ME 8 08/19/87 BIF Regular
BVCC Bay View Capital Corp. NASDAQ San Mateo CA 63 05/09/86 SAIF Regular
BWFC Bank West Financial Corp. NASDAQ Grand Rapids MI 3 03/30/95 SAIF Regular
BYFC Broadway Financial Corp. NASDAQ Los Angeles CA 4 01/09/96 SAIF Regular
BYS Bay State Bancorp AMSE Brookline MA 5 03/30/98 SAIF Regular
CAFI Camco Financial Corp. NASDAQ Cambridge OH 14 NA SAIF Not Avail.
CAPS Capital Savings Bancorp Inc. NASDAQ Jefferson City MO 8 12/29/93 SAIF Regular
CASB Cascade Financial Corp. NASDAQ Everett WA 11 09/16/92 SAIF Regular
CASH First Midwest Financial Inc. NASDAQ Storm Lake IA 13 09/20/93 SAIF Regular
CATB Catskill Financial Corp. NASDAQ Catskill NY 5 04/18/96 BIF Regular
CAVB Cavalry Bancorp Inc. NASDAQ Murfreesboro TN 9 03/17/98 SAIF Regular
CBCI Calumet Bancorp Inc. NASDAQ Dolton IL 5 02/20/92 SAIF Regular
CBES CBES Bancorp Inc. NASDAQ Excelsior Springs MO 3 09/30/96 SAIF Regular
CBK Citizens First Financial Corp. AMSE Bloomington IL 6 05/01/96 SAIF Regular
CBSA Coastal Bancorp Inc. NASDAQ Houston TX 37 NA SAIF Not Avail.
CCFH CCF Holding Co. NASDAQ Jonesboro GA 5 07/12/95 SAIF Regular
CEBK Central Co-operative Bank NASDAQ Somerville MA 8 10/24/86 BIF Regular
CENB Century Bancorp Inc. NASDAQ Thomasville NC 1 12/23/96 SAIF Regular
CFB Commercial Federal Corp. NYSE Omaha NE 168 12/31/84 SAIF Regular
CFCP Coastal Financial Corp. NASDAQ Myrtle Beach SC 11 09/26/90 SAIF Regular
CFFC Community Financial Corp. NASDAQ Staunton VA 4 03/30/88 SAIF Regular
CFKY Columbia Financial of Kentucky NASDAQ Fort Mitchell KY 5 04/15/98 SAIF Regular
CFNC Carolina Fincorp Inc. NASDAQ Rockingham NC 4 11/25/96 SAIF Regular
CFSB CFSB Bancorp Inc. NASDAQ Lansing MI 17 06/22/90 SAIF Regular
CFTP Community Federal Bancorp NASDAQ Tupelo MS 2 03/26/96 SAIF Regular
CIBI Community Investors Bancorp NASDAQ Bucyrus OH 3 02/07/95 SAIF Regular
CKFB CKF Bancorp Inc. NASDAQ Danville KY 1 01/04/95 SAIF Regular
CLAS Classic Bancshares Inc. NASDAQ Ashland KY 3 12/29/95 SAIF Regular
CMRN Cameron Financial Corp NASDAQ Cameron MO 4 04/03/95 SAIF Regular
CMSB Commonwealth Bancorp Inc. NASDAQ Norristown PA 57 06/17/96 SAIF Not Avail.
</TABLE>
<PAGE>
Page 1 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 32,086,201 130 66.34 51.12 38.23
%CCMD Chevy Chase Bank, FSB 6,301,924 54 42.63 79.53 9.87
AABC Access Anytime Bancorp Inc. 114,047 71 61.11 86.24 5.04
ABBK Abington Bancorp Inc. 549,838 103 62.54 60.60 32.06
ABCL Alliance Bancorp 1,537,067 95 63.14 66.37 23.31
ABCW Anchor BanCorp Wisconsin 1,999,307 117 81.58 69.65 22.74
AFBC Advance Financial Bancorp 110,668 115 86.06 74.65 10.59
AFCB Affiliated Community Bancorp 1,140,762 97 62.15 63.79 25.38
AFED AFSALA Bancorp Inc. 165,925 56 46.99 83.71 1.03
AHCI Ambanc Holding Co. 519,831 89 55.34 62.41 22.44
AHM H.F. Ahmanson & Co. 54,519,346 95 66.89 70.37 20.64
ALBC Albion Banc Corp. 72,898 97 74.72 76.67 12.61
ALBK ALBANK Financial Corp. 4,089,428 80 69.54 86.56 0.79
ALLB Alliance Bank (MHC) 272,755 74 56.91 77.20 11.36
AMFC AMB Financial Corp. 106,201 112 78.69 70.05 14.12
ANA Acadiana Bancshares Inc. 293,507 111 74.40 66.74 16.94
ANDB Andover Bancorp Inc. 1,385,507 104 73.20 70.43 20.81
ANE Alliance Bncp of New England 247,337 72 64.03 89.24 2.31
ASBI Ameriana Bancorp 388,491 88 72.49 82.72 3.87
ASBP ASB Financial Corp. 114,907 86 68.39 79.21 3.71
ASFC Astoria Financial Corp. 10,895,609 75 42.63 56.96 33.44
ATSB AmTrust Capital Corp. 69,106 105 70.11 66.89 21.51
AVND Avondale Financial Corp. 606,658 65 41.64 64.36 26.51
BANC BankAtlantic Bancorp Inc. 3,526,508 146 75.61 51.90 35.98
BDJI First Federal Bancorp. 113,159 65 47.80 73.38 13.59
BFD BostonFed Bancorp Inc. 1,031,599 131 82.73 63.11 27.92
BFFC Big Foot Financial Corp. 209,474 88 51.82 58.58 20.53
BFSB Bedford Bancshares Inc. 153,149 115 79.44 69.23 16.98
BKC American Bank of Connecticut 651,217 83 59.87 72.32 17.52
BKCT Bancorp Connecticut Inc. 479,776 78 54.52 70.11 18.96
BKUNA BankUnited Financial Corp. 3,326,968 138 76.08 55.12 32.45
BNKU Bank United Corp. 13,109,497 154 76.37 49.63 39.03
BPLS Bank Plus Corp. 4,220,069 97 68.58 70.99 23.97
BRKL Brookline Bancorp (MHC) 817,202 115 66.38 57.50 7.59
BTHL Bethel Bancorp 218,187 115 77.14 67.20 22.23
BVCC Bay View Capital Corp. 5,341,413 114 74.56 65.38 26.52
BWFC Bank West Financial Corp. 180,157 106 68.85 65.25 21.21
BYFC Broadway Financial Corp. 128,444 94 83.51 88.41 0.00
BYS Bay State Bancorp 295,292 110 77.30 70.36 6.77
CAFI Camco Financial Corp. 575,563 112 83.81 74.64 13.81
CAPS Capital Savings Bancorp Inc. 231,850 110 81.10 73.75 14.66
CASB Cascade Financial Corp. 434,697 125 86.95 69.36 20.03
CASH First Midwest Financial Inc. 405,417 95 61.85 65.14 23.57
CATB Catskill Financial Corp. 295,932 63 43.10 68.87 6.06
CAVB Cavalry Bancorp Inc. 350,854 95 66.46 70.31 0.00
CBCI Calumet Bancorp Inc. 490,268 109 77.55 70.98 9.19
CBES CBES Bancorp Inc. 116,427 127 90.48 71.24 13.10
CBK Citizens First Financial Corp. 279,849 114 82.26 71.94 12.74
CBSA Coastal Bancorp Inc. 2,966,202 99 45.57 46.10 48.41
CCFH CCF Holding Co. 143,062 85 76.05 89.55 0.00
CEBK Central Co-operative Bank 367,096 96 72.38 75.50 13.88
CENB Century Bancorp Inc. 104,379 95 65.55 69.25 0.00
CFB Commercial Federal Corp. 8,528,709 122 74.89 61.23 29.93
CFCP Coastal Financial Corp. 583,239 121 73.27 60.55 32.24
CFFC Community Financial Corp. 182,879 122 88.50 72.70 12.58
CFKY Columbia Financial of Kentucky 127,726 54 48.32 89.15 0.00
CFNC Carolina Fincorp Inc. 118,468 93 70.79 76.23 0.00
CFSB CFSB Bancorp Inc. 846,142 128 87.30 68.13 22.34
CFTP Community Federal Bancorp 254,072 98 53.65 54.72 18.86
CIBI Community Investors Bancorp 101,734 111 82.20 74.09 14.33
CKFB CKF Bancorp Inc. 62,567 126 90.74 72.27 5.08
CLAS Classic Bancshares Inc. 132,793 90 67.70 75.09 8.71
CMRN Cameron Financial Corp 220,892 137 83.30 60.72 17.32
CMSB Commonwealth Bancorp Inc. 2,390,417 90 59.41 66.07 21.38
</TABLE>
<PAGE>
Page 2 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) NASDAQ North Palm Beach FL 21 10/24/94 SAIF Mutual HC
CNIT CENIT Bancorp Inc. NASDAQ Norfolk VA 20 08/06/92 SAIF Regular
CNSB CNS Bancorp Inc. NASDAQ Jefferson City MO 5 06/12/96 SAIF Regular
CNY Carver Bancorp Inc. AMSE New York NY 7 10/25/94 SAIF Regular
COFI Charter One Financial NASDAQ Cleveland OH 223 01/22/88 SAIF Regular
CONE Conestoga Bancorp, Inc. NASDAQ Roslyn NY 8 03/30/94 SAIF Regular
COOP Cooperative Bankshares Inc. NASDAQ Wilmington NC 16 08/21/91 SAIF Regular
CRSB Crusader Holding Corp. NASDAQ Philadelphia PA 2 NA SAIF Not Avail.
CRZY Crazy Woman Creek Bancorp NASDAQ Buffalo WY 1 03/29/96 SAIF Regular
CSBF CSB Financial Group Inc. NASDAQ Centralia IL 2 10/09/95 SAIF Regular
CTZN CitFed Bancorp Inc. NASDAQ Dayton OH 36 01/23/92 SAIF Regular
CVAL Chester Valley Bancorp Inc. NASDAQ Downingtown PA 7 03/27/87 SAIF Regular
DCBI Delphos Citizens Bancorp Inc. NASDAQ Delphos OH 1 11/21/96 SAIF Regular
DIBK Dime Financial Corp. NASDAQ Wallingford CT 11 07/09/86 BIF Regular
DIME Dime Community Bancorp Inc. NASDAQ Brooklyn NY 15 06/26/96 BIF Regular
DME Dime Bancorp Inc. NYSE New York NY 91 08/19/86 BIF Regular
DNFC D & N Financial Corp. NASDAQ Hancock MI 36 02/13/85 SAIF Regular
DSL Downey Financial Corp. NYSE Newport Beach CA 89 01/01/71 SAIF Not Avail.
EBI Equality Bancorp Inc. AMSE St. Louis MO 3 12/02/97 SAIF Mutual HC
EBSI Eagle Bancshares NASDAQ Tucker GA 14 04/01/86 SAIF Regular
EFBC Empire Federal Bancorp Inc. NASDAQ Livingston MT 3 01/27/97 SAIF Regular
EFBI Enterprise Federal Bancorp NASDAQ West Chester OH 7 10/17/94 SAIF Regular
EFC EFC Bancorp Inc. AMSE Elgin IL 6 04/07/98 SAIF Regular
EGLB Eagle BancGroup Inc. NASDAQ Bloomington IL 3 07/01/96 SAIF Regular
EMLD Emerald Financial Corp. NASDAQ Strongsville OH 14 10/05/93 SAIF Regular
EQSB Equitable Federal Savings Bank NASDAQ Wheaton MD 4 09/10/93 SAIF Supervisory
ESBF ESB Financial Corp. NASDAQ Ellwood City PA 11 06/13/90 SAIF Regular
ESBK Elmira Savings Bank (The) NASDAQ Elmira NY 6 03/01/85 BIF Regular
ESX Essex Bancorp Inc. AMSE Norfolk VA 4 07/18/90 SAIF Not Avail.
ETFS East Texas Financial Services NASDAQ Tyler TX 2 01/10/95 SAIF Regular
FAB FIRSTFED AMERICA BANCORP INC. AMSE Swansea MA 13 01/15/97 SAIF Regular
FBBC First Bell Bancorp Inc. NASDAQ Pittsburgh PA 7 06/29/95 SAIF Regular
FBCI Fidelity Bancorp Inc. NASDAQ Chicago IL 5 12/15/93 SAIF Regular
FBCV 1ST Bancorp NASDAQ Vincennes IN 2 04/07/87 SAIF Regular
FBER 1st Bergen Bancorp NASDAQ Wood-Ridge NJ 4 04/01/96 SAIF Regular
FBHC Fort Bend Holding Corp. NASDAQ Rosenberg TX 6 06/30/93 SAIF Regular
FBNW FirstBank Corp. NASDAQ Lewiston ID 6 07/02/97 SAIF Regular
FBSI First Bancshares Inc. NASDAQ Mountain Grove MO 8 12/22/93 SAIF Regular
FCB Falmouth Bancorp Inc. AMSE Falmouth MA 3 03/28/96 BIF Regular
FCBF FCB Financial Corp. NASDAQ Oshkosh WI 13 09/24/93 SAIF Regular
FCBH Virginia Beach Fed. Financial NASDAQ Virginia Beach VA 14 11/01/80 SAIF Not Avail.
FCBK First Coastal Bankshares NASDAQ Virginia Beach VA 16 11/01/80 SAIF Not Avail.
FCME First Coastal Corp. NASDAQ Westbrook ME 8 NA BIF Not Avail.
FDEF First Defiance Financial NASDAQ Defiance OH 11 10/02/95 SAIF Not Avail.
FED FirstFed Financial Corp. NYSE Santa Monica CA 24 12/16/83 SAIF Regular
FESX First Essex Bancorp Inc. NASDAQ Andover MA 15 08/04/87 BIF Regular
FFBA First Colorado Bancorp Inc. NASDAQ Lakewood CO 27 01/02/96 SAIF Not Avail.
FFBH First Federal Bancshares of AR NASDAQ Harrison AR 12 05/03/96 SAIF Regular
FFBI First Financial Bancorp Inc. NASDAQ Belvidere IL 2 10/04/93 SAIF Regular
FFBS FFBS BanCorp Inc. NASDAQ Columbus MS 3 07/01/93 SAIF Regular
FFBZ First Federal Bancorp Inc. NASDAQ Zanesville OH 6 07/13/92 SAIF Regular
FFCH First Financial Holdings Inc. NASDAQ Charleston SC 35 11/10/83 SAIF Regular
FFDB FirstFed Bancorp Inc. NASDAQ Bessemer AL 8 11/19/91 SAIF Regular
FFDF FFD Financial Corp. NASDAQ Dover OH 1 04/03/96 SAIF Regular
FFED Fidelity Federal Bancorp NASDAQ Evansville IN 4 08/31/87 SAIF Regular
FFES First Federal of East Hartford NASDAQ East Hartford CT 12 06/23/87 SAIF Regular
FFFD North Central Bancshares Inc. NASDAQ Fort Dodge IA 7 03/21/96 SAIF Not Avail.
FFFL Fidelity Bankshares Inc. (MHC) NASDAQ West Palm Beach FL 22 01/07/94 SAIF Mutual HC
FFHH FSF Financial Corp. NASDAQ Hutchinson MN 11 10/07/94 SAIF Regular
FFHS First Franklin Corp. NASDAQ Cincinnati OH 7 01/26/88 SAIF Regular
FFIC Flushing Financial Corp. NASDAQ Flushing NY 7 11/21/95 BIF Regular
FFKY First Federal Financial Corp. NASDAQ Elizabethtown KY 8 07/15/87 SAIF Regular
FFLC FFLC Bancorp Inc. NASDAQ Leesburg FL 9 01/04/94 SAIF Regular
FFOH Fidelity Financial of Ohio NASDAQ Cincinnati OH 12 03/04/96 SAIF Not Avail.
</TABLE>
<PAGE>
Page 2 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 760,610 84 64.80 77.11 10.17
CNIT CENIT Bancorp Inc. 734,427 104 71.83 69.37 23.10
CNSB CNS Bancorp Inc. 97,510 93 68.91 74.10 0.61
CNY Carver Bancorp Inc. 436,775 102 64.04 62.96 28.61
COFI Charter One Financial 19,457,016 123 66.55 54.21 35.90
CONE Conestoga Bancorp, Inc. 494,348 29 23.21 80.86 2.02
COOP Cooperative Bankshares Inc. 381,432 95 74.94 78.57 13.15
CRSB Crusader Holding Corp. 202,451 128 84.03 65.76 21.87
CRZY Crazy Woman Creek Bancorp 61,681 95 47.37 49.66 26.02
CSBF CSB Financial Group Inc. 47,983 76 57.68 76.06 0.00
CTZN CitFed Bancorp Inc. 3,533,433 112 56.41 50.17 42.28
CVAL Chester Valley Bancorp Inc. 343,865 96 77.82 80.95 9.12
DCBI Delphos Citizens Bancorp Inc. 112,625 116 81.09 70.06 4.44
DIBK Dime Financial Corp. 1,016,401 44 36.87 83.95 7.18
DIME Dime Community Bancorp Inc. 1,577,141 86 56.09 65.54 17.40
DME Dime Bancorp Inc. 22,023,998 119 75.29 63.53 28.09
DNFC D & N Financial Corp. 1,867,539 134 74.55 55.60 35.74
DSL Downey Financial Corp. 5,871,913 105 91.73 87.00 4.55
EBI Equality Bancorp Inc. 229,280 95 48.48 50.87 37.07
EBSI Eagle Bancshares 934,458 113 72.80 64.69 24.69
EFBC Empire Federal Bancorp Inc. 110,590 69 42.17 60.77 0.62
EFBI Enterprise Federal Bancorp 365,625 124 67.39 54.39 34.39
EFC EFC Bancorp Inc. 448,207 94 58.32 62.34 7.59
EGLB Eagle BancGroup Inc. 180,211 92 67.74 73.31 14.43
EMLD Emerald Financial Corp. 615,799 88 75.93 85.97 4.52
EQSB Equitable Federal Savings Bank 335,060 NA NA 76.20 17.61
ESBF ESB Financial Corp. 945,550 87 37.13 42.47 46.76
ESBK Elmira Savings Bank (The) 229,712 85 77.67 91.59 1.40
ESX Essex Bancorp Inc. 193,047 112 90.21 80.48 10.66
ETFS East Texas Financial Services 120,943 70 50.79 72.68 9.12
FAB FIRSTFED AMERICA BANCORP INC. 1,281,832 133 73.67 55.27 31.51
FBBC First Bell Bancorp Inc. 664,632 121 86.64 71.33 14.29
FBCI Fidelity Bancorp Inc. 484,340 118 80.59 68.23 19.14
FBCV 1ST Bancorp 259,562 155 73.33 47.28 42.53
FBER 1st Bergen Bancorp 316,071 59 41.77 70.86 16.56
FBHC Fort Bend Holding Corp. 302,728 62 52.18 84.47 5.28
FBNW FirstBank Corp. 183,529 128 79.98 62.39 19.43
FBSI First Bancshares Inc. 177,946 103 81.36 79.09 6.86
FCB Falmouth Bancorp Inc. 105,141 89 66.04 74.26 2.45
FCBF FCB Financial Corp. 519,911 127 77.30 60.78 22.43
FCBH Virginia Beach Fed. Financial 625,254 108 74.01 68.42 23.41
FCBK First Coastal Bankshares 625,254 108 74.01 68.42 23.41
FCME First Coastal Corp. 150,022 92 72.33 79.00 10.74
FDEF First Defiance Financial 577,471 113 78.57 69.75 11.52
FED FirstFed Financial Corp. 4,067,344 149 79.02 53.04 39.86
FESX First Essex Bancorp Inc. 1,293,302 94 54.96 58.78 32.38
FFBA First Colorado Bancorp Inc. 1,559,294 99 75.56 76.28 8.00
FFBH First Federal Bancshares of AR 570,400 95 77.03 81.06 3.51
FFBI First Financial Bancorp Inc. 82,682 81 66.52 81.70 8.10
FFBS FFBS BanCorp Inc. 134,952 91 71.00 78.35 3.41
FFBZ First Federal Bancorp Inc. 211,644 136 86.06 63.27 28.52
FFCH First Financial Holdings Inc. 1,858,165 131 81.02 61.75 29.94
FFDB FirstFed Bancorp Inc. 178,792 76 68.05 89.68 0.00
FFDF FFD Financial Corp. 100,104 112 67.56 60.56 16.40
FFED Fidelity Federal Bancorp 197,436 113 84.20 74.29 18.13
FFES First Federal of East Hartford 990,982 34 20.13 58.65 33.81
FFFD North Central Bancshares Inc. 332,812 102 75.18 73.53 10.09
FFFL Fidelity Bankshares Inc. (MHC) 1,320,669 98 68.37 69.77 19.54
FFHH FSF Financial Corp. 411,059 128 68.28 53.14 35.81
FFHS First Franklin Corp. 232,340 76 66.66 87.90 2.32
FFIC Flushing Financial Corp. 1,078,456 97 58.85 60.84 25.18
FFKY First Federal Financial Corp. 407,347 115 86.31 75.09 10.64
FFLC FFLC Bancorp Inc. 408,651 102 80.66 78.98 7.34
FFOH Fidelity Financial of Ohio 540,408 100 78.34 78.60 8.23
</TABLE>
<PAGE>
Page 3 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. NASDAQ West Palm Beach FL 50 09/29/93 SAIF Regular
FFSL First Independence Corp. NASDAQ Independence KS 2 10/08/93 SAIF Regular
FFSX First Fed SB of Siouxland(MHC) NASDAQ Sioux City IA 14 07/13/92 SAIF Mutual HC
FFWC FFW Corp. NASDAQ Wabash IN 4 04/05/93 SAIF Regular
FFWD Wood Bancorp Inc. NASDAQ Bowling Green OH 7 08/31/93 SAIF Regular
FFYF FFY Financial Corp. NASDAQ Youngstown OH 10 06/28/93 SAIF Regular
FGHC First Georgia Holding Inc. NASDAQ Brunswick GA 7 02/11/87 SAIF Regular
FIBC Financial Bancorp Inc. NASDAQ Long Island City NY 5 08/17/94 SAIF Regular
FISB First Indiana Corp. NASDAQ Indianapolis IN 26 08/02/83 SAIF Regular
FKFS First Keystone Financial NASDAQ Media PA 6 01/26/95 SAIF Regular
FKKY Frankfort First Bancorp Inc. NASDAQ Frankfort KY 3 07/10/95 SAIF Regular
FLAG FLAG Financial Corp. NASDAQ LaGrange GA 16 12/11/86 SAIF Regular
FLFC First Liberty Financial Corp. NASDAQ Macon GA 31 12/06/83 SAIF Regular
FLGS Flagstar Bancorp Inc. NASDAQ Bloomfield Hills MI 22 NA SAIF Not Avail.
FLKY First Lancaster Bancshares NASDAQ Lancaster KY 1 07/01/96 SAIF Regular
FMBD First Mutual Bancorp Inc. NASDAQ Decatur IL 14 07/05/95 SAIF Regular
FMCO FMS Financial Corp. NASDAQ Burlington NJ 21 12/14/88 SAIF Regular
FMSB First Mutual Savings Bank NASDAQ Bellevue WA 9 12/17/85 BIF Regular
FNGB First Northern Capital Corp. NASDAQ Green Bay WI 19 12/29/83 SAIF Regular
FOBC Fed One Bancorp NASDAQ Wheeling WV 12 01/19/95 SAIF Not Avail.
FPRY First Financial Bancorp NASDAQ Tallahassee FL 6 03/29/88 SAIF Regular
FSBI Fidelity Bancorp Inc. NASDAQ Pittsburgh PA 8 06/24/88 SAIF Regular
FSFF First SecurityFed Financial NASDAQ Chicago IL 5 10/31/97 SAIF Regular
FSLA First Source Bancorp Inc. NASDAQ Woodbridge NJ 16 04/09/98 SAIF Not Avail.
FSNJ Bayonne Bancshares Inc. NASDAQ Bayonne NJ 4 08/22/97 SAIF Not Avail.
FSPG First Home Bancorp Inc. NASDAQ Pennsville NJ 10 04/20/87 SAIF Regular
FSPT FirstSpartan Financial Corp. NASDAQ Spartanburg SC 8 07/09/97 SAIF Regular
FSSB First FS&LA of San Bernardino NASDAQ San Bernardino CA 4 02/02/93 SAIF Regular
FSTC First Citizens Corp. NASDAQ Newnan GA 9 03/01/86 SAIF Regular
FTF Texarkana First Financial Corp AMSE Texarkana AR 5 07/07/95 SAIF Regular
FTFC First Federal Capital Corp. NASDAQ La Crosse WI 54 11/02/89 SAIF Regular
FTNB Fulton Bancorp Inc. NASDAQ Fulton MO 2 10/18/96 SAIF Regular
FTSB Fort Thomas Financial Corp. NASDAQ Fort Thomas KY 2 06/28/95 SAIF Regular
FWWB First SB of Washington Bancorp NASDAQ Walla Walla WA 25 11/01/95 SAIF Regular
GAF GA Financial Inc. AMSE Pittsburgh PA 13 03/26/96 SAIF Regular
GBNK Gaston Federal Bancorp (MHC) NASDAQ Gastonia NC 4 04/13/98 SAIF Mutual HC
GDW Golden West Financial NYSE Oakland CA 252 05/29/59 SAIF Not Avail.
GFCO Glenway Financial Corp. NASDAQ Cincinnati OH 5 11/30/90 SAIF Regular
GFED Guaranty Federal Bcshs Inc. NASDAQ Springfield MO 5 12/31/97 SAIF Not Avail.
GLMR Gilmer Financial Svcs, Inc. NASDAQ Gilmer TX 1 02/09/95 SAIF Regular
GOSB GSB Financial Corp. NASDAQ Goshen NY 2 07/09/97 BIF Regular
GPT GreenPoint Financial Corp. NYSE New York NY 73 01/28/94 BIF Regular
GSB Golden State Bancorp Inc. NYSE Glendale CA 199 10/01/83 SAIF Regular
GSBC Great Southern Bancorp Inc. NASDAQ Springfield MO 25 12/14/89 SAIF Regular
GSFC Green Street Financial Corp. NASDAQ Fayetteville NC 3 04/04/96 SAIF Regular
GSLA GS Financial Corp. NASDAQ Metairie LA 3 04/01/97 SAIF Regular
GTPS Great American Bancorp NASDAQ Champaign IL 3 06/30/95 SAIF Regular
GUPB GFSB Bancorp Inc. NASDAQ Gallup NM 1 06/30/95 SAIF Regular
HALL Hallmark Capital Corp. NASDAQ West Allis WI 3 01/03/94 SAIF Regular
HARB Harbor Florida Bancshares Inc. NASDAQ Fort Pierce FL 24 03/19/98 SAIF Not Avail.
HARL Harleysville Savings Bank NASDAQ Harleysville PA 4 08/04/87 SAIF Regular
HARS Harris Financial Inc. (MHC) NASDAQ Harrisburg PA 34 01/25/94 SAIF Mutual HC
HAVN Haven Bancorp Inc. NASDAQ Woodhaven NY 48 09/23/93 SAIF Regular
HBBI Home Building Bancorp NASDAQ Washington IN 2 02/08/95 SAIF Regular
HBEI Home Bancorp of Elgin Inc. NASDAQ Elgin IL 5 09/27/96 SAIF Regular
HBFW Home Bancorp NASDAQ Fort Wayne IN 9 03/30/95 SAIF Regular
HBNK Highland Bancorp Inc. NASDAQ Burbank CA 7 NA SAIF Not Avail.
HBS Haywood Bancshares Inc. AMSE Waynesville NC 4 12/18/87 SAIF Not Avail.
HBSC Heritage Bancorp Inc. NASDAQ Laurens SC 4 04/06/98 SAIF Regular
HCBB HCB Bancshares Inc. NASDAQ Camden AR 6 05/07/97 SAIF Regular
HCBC High Country Bancorp Inc. NASDAQ Salida CO 3 12/10/97 SAIF Regular
HCFC Home City Financial Corp. NASDAQ Springfield OH 1 12/30/96 SAIF Regular
HEMT HF Bancorp Inc. NASDAQ Hemet CA 19 06/30/95 SAIF Regular
HFBC HopFed Bancorp Inc. NASDAQ Hopkinsville KY 5 02/09/98 SAIF Regular
</TABLE>
<PAGE>
Page 3 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 1,791,370 81 58.08 71.52 19.80
FFSL First Independence Corp. 124,494 102 69.02 67.61 21.93
FFSX First Fed SB of Siouxland(MHC) 571,203 105 72.55 69.32 18.81
FFWC FFW Corp. 198,712 107 66.90 62.41 26.17
FFWD Wood Bancorp Inc. 165,007 106 83.16 78.27 7.82
FFYF FFY Financial Corp. 644,647 103 72.39 70.04 15.24
FGHC First Georgia Holding Inc. 175,515 106 87.40 82.80 7.77
FIBC Financial Bancorp Inc. 310,368 76 55.98 73.66 15.82
FISB First Indiana Corp. 1,687,938 119 84.05 70.64 18.76
FKFS First Keystone Financial 385,152 83 51.47 61.67 26.02
FKKY Frankfort First Bancorp Inc. 133,304 153 94.39 61.78 20.15
FLAG FLAG Financial Corp. 395,456 91 69.89 76.62 12.29
FLFC First Liberty Financial Corp. 1,355,001 95 68.37 72.27 19.40
FLGS Flagstar Bancorp Inc. 2,563,924 166 88.69 53.33 28.13
FLKY First Lancaster Bancshares 53,002 195 89.82 46.07 25.88
FMBD First Mutual Bancorp Inc. 390,231 96 78.80 81.96 2.43
FMCO FMS Financial Corp. 668,619 59 45.26 76.25 16.78
FMSB First Mutual Savings Bank 469,318 102 85.41 83.70 7.39
FNGB First Northern Capital Corp. 677,038 122 89.23 73.10 14.52
FOBC Fed One Bancorp 367,667 64 45.94 71.83 16.26
FPRY First Financial Bancorp 240,379 89 77.63 87.36 5.41
FSBI Fidelity Bancorp Inc. 402,919 76 49.92 65.28 24.29
FSFF First SecurityFed Financial 323,279 93 60.91 65.78 4.33
FSLA First Source Bancorp Inc. 1,168,435 75 52.74 70.13 10.57
FSNJ Bayonne Bancshares Inc. 610,639 56 38.51 69.23 13.98
FSPG First Home Bancorp Inc. 545,775 85 51.07 60.14 32.23
FSPT FirstSpartan Financial Corp. 503,324 114 82.33 72.12 0.40
FSSB First FS&LA of San Bernardino 103,674 75 71.56 95.05 0.00
FSTC First Citizens Corp. 352,233 88 76.16 86.29 2.93
FTF Texarkana First Financial Corp 184,776 100 80.12 80.30 3.26
FTFC First Federal Capital Corp. 1,580,295 103 79.01 76.38 15.31
FTNB Fulton Bancorp Inc. 109,622 131 83.03 63.44 11.76
FTSB Fort Thomas Financial Corp. 101,600 123 90.38 73.62 9.49
FWWB First SB of Washington Bancorp 1,136,693 132 67.61 51.23 33.72
GAF GA Financial Inc. 818,091 71 40.81 57.43 26.38
GBNK Gaston Federal Bancorp (MHC) 291,265 91 47.19 51.91 1.20
GDW Golden West Financial 39,669,420 134 83.09 61.91 28.84
GFCO Glenway Financial Corp. 300,448 114 85.87 75.06 14.21
GFED Guaranty Federal Bcshs Inc. 246,325 133 78.18 58.64 11.31
GLMR Gilmer Financial Svcs, Inc. 42,171 81 56.24 69.02 20.27
GOSB GSB Financial Corp. 118,855 88 60.42 68.96 1.68
GPT GreenPoint Financial Corp. 13,228,239 83 68.27 82.15 2.72
GSB Golden State Bancorp Inc. 15,924,250 123 75.07 60.87 30.29
GSBC Great Southern Bancorp Inc. 814,855 135 82.17 61.01 30.33
GSFC Green Street Financial Corp. 177,901 118 74.22 63.02 0.00
GSLA GS Financial Corp. 129,398 95 43.02 45.06 11.34
GTPS Great American Bancorp 146,234 95 76.69 80.36 0.00
GUPB GFSB Bancorp Inc. 118,175 104 59.03 56.84 29.58
HALL Hallmark Capital Corp. 420,954 104 67.85 65.51 25.67
HARB Harbor Florida Bancshares Inc. 1,284,313 98 70.18 71.68 7.40
HARL Harleysville Savings Bank 367,596 90 68.66 76.68 15.67
HARS Harris Financial Inc. (MHC) 2,260,301 81 40.58 50.40 39.95
HAVN Haven Bancorp Inc. 2,017,784 81 59.16 73.09 18.58
HBBI Home Building Bancorp 42,430 90 68.17 75.61 9.43
HBEI Home Bancorp of Elgin Inc. 368,976 113 82.06 72.56 0.00
HBFW Home Bancorp 353,364 101 86.99 85.92 0.57
HBNK Highland Bancorp Inc. 555,670 117 79.54 67.98 22.50
HBS Haywood Bancshares Inc. 152,002 99 75.65 76.71 6.91
HBSC Heritage Bancorp Inc. 328,319 67 59.93 89.55 0.00
HCBB HCB Bancshares Inc. 204,944 71 51.73 72.44 7.86
HCBC High Country Bancorp Inc. 92,258 127 81.07 63.83 15.67
HCFC Home City Financial Corp. 76,374 123 89.26 72.73 8.10
HEMT HF Bancorp Inc. 1,065,733 69 55.96 81.50 9.38
HFBC HopFed Bancorp Inc. 221,410 65 47.38 72.43 0.00
</TABLE>
<PAGE>
Page 4 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp NASDAQ Harrodsburg KY 2 10/04/95 SAIF Regular
HFFC HF Financial Corp. NASDAQ Sioux Falls SD 19 04/08/92 SAIF Regular
HFGI Harrington Financial Group NASDAQ Richmond IN 7 NA SAIF Not Avail.
HFNC HFNC Financial Corp. NASDAQ Charlotte NC 9 12/29/95 SAIF Regular
HFSA Hardin Bancorp Inc. NASDAQ Hardin MO 3 09/29/95 SAIF Regular
HFWA Heritage Financial Corp. NASDAQ Olympia WA 10 01/09/98 SAIF Not Avail.
HHFC Harvest Home Financial Corp. NASDAQ Cheviot OH 3 10/10/94 SAIF Regular
HIFS Hingham Instit. for Savings NASDAQ Hingham MA 5 12/20/88 BIF Regular
HLFC Home Loan Financial Corp. NASDAQ Coshocton OH 2 03/26/98 SAIF Regular
HMLK Hemlock Federal Financial Corp NASDAQ Oak Forest IL 3 04/02/97 SAIF Regular
HMNF HMN Financial Inc. NASDAQ Spring Valley MN 10 06/30/94 SAIF Regular
HOMF Home Federal Bancorp NASDAQ Seymour IN 16 01/23/88 SAIF Regular
HPBC Home Port Bancorp Inc. NASDAQ Nantucket MA 2 08/25/88 BIF Regular
HRBF Harbor Federal Bancorp Inc. NASDAQ Baltimore MD 9 08/12/94 SAIF Regular
HRZB Horizon Financial Corp. NASDAQ Bellingham WA 12 08/01/86 BIF Regular
HTHR Hawthorne Financial Corp. NASDAQ El Segundo CA 6 NA SAIF Not Avail.
HWEN Home Financial Bancorp NASDAQ Spencer IN 1 07/02/96 SAIF Regular
HZFS Horizon Financial Svcs Corp. NASDAQ Oskaloosa IA 3 06/30/94 SAIF Regular
IBSF IBS Financial Corp. NASDAQ Cherry Hill NJ 9 10/13/94 SAIF Regular
ICBC Independence Comm. Bank Corp. NASDAQ Brooklyn NY 34 03/17/98 SAIF Regular
IFSB Independence Federal Svgs Bank NASDAQ Washington DC 2 06/06/85 SAIF Regular
INBI Industrial Bancorp Inc. NASDAQ Bellevue OH 10 08/01/95 SAIF Regular
IPSW Ipswich Savings Bank NASDAQ Ipswich MA 6 05/26/93 BIF Regular
ITLA ITLA Capital Corp. NASDAQ La Jolla CA 6 10/24/95 BIF Not Avail.
IWBK InterWest Bancorp Inc. NASDAQ Oak Harbor WA 42 NA SAIF Not Avail.
JOAC Joachim Bancorp Inc. NASDAQ De Soto MO 1 12/28/95 SAIF Regular
JSB JSB Financial Inc. NYSE Lynbrook NY 13 06/27/90 BIF Regular
JSBA Jefferson Savings Bancorp NASDAQ Ballwin MO 31 04/08/93 SAIF Regular
JXSB Jacksonville Savings Bk (MHC) NASDAQ Jacksonville IL 5 04/21/95 SAIF Mutual HC
JXVL Jacksonville Bancorp Inc. NASDAQ Jacksonville TX 7 04/01/96 SAIF Not Avail.
KFBI Klamath First Bancorp NASDAQ Klamath Falls OR 33 10/05/95 SAIF Regular
KNK Kankakee Bancorp Inc. AMSE Kankakee IL 12 01/06/93 SAIF Regular
KSAV KS Bancorp Inc. NASDAQ Kenly NC 5 12/30/93 SAIF Regular
KSBK KSB Bancorp Inc. NASDAQ Kingfield ME 8 06/24/93 BIF Regular
KYF Kentucky First Bancorp Inc. AMSE Cynthiana KY 2 08/29/95 SAIF Regular
LARK Landmark Bancshares Inc. NASDAQ Dodge City KS 5 03/28/94 SAIF Regular
LARL Laurel Capital Group Inc. NASDAQ Allison Park PA 6 02/20/87 SAIF Regular
LFBI Little Falls Bancorp Inc. NASDAQ Little Falls NJ 6 01/05/96 SAIF Regular
LFCO Life Financial Corp. NASDAQ Riverside CA 2 NA SAIF Not Avail.
LFED Leeds Federal Bankshares (MHC) NASDAQ Baltimore MD 1 05/02/94 SAIF Mutual HC
LISB Long Island Bancorp Inc. NASDAQ Melville NY 35 04/18/94 SAIF Regular
LO Local Financial Corp. AMSE Oklahoma City OK 44 NA SAIF Not Avail.
LOGN Logansport Financial Corp. NASDAQ Logansport IN 1 06/14/95 SAIF Regular
LONF London Financial Corp. NASDAQ London OH 1 04/01/96 SAIF Regular
LSBI LSB Financial Corp. NASDAQ Lafayette IN 4 02/03/95 BIF Regular
LSBX Lawrence Savings Bank NASDAQ North Andover MA 5 05/02/86 BIF Regular
LVSB Lakeview Financial Corp. NASDAQ Paterson NJ 8 12/22/93 SAIF Regular
LXMO Lexington B&L Financial Corp. NASDAQ Lexington MO 4 06/06/96 SAIF Regular
MAFB MAF Bancorp Inc. NASDAQ Clarendon Hills IL 22 01/12/90 SAIF Regular
MARN Marion Capital Holdings NASDAQ Marion IN 4 03/18/93 SAIF Regular
MASB MASSBANK Corp. NASDAQ Reading MA 15 05/28/86 BIF Regular
MBBC Monterey Bay Bancorp Inc. NASDAQ Watsonville CA 7 02/15/95 SAIF Regular
MBLF MBLA Financial Corp. NASDAQ Macon MO 2 06/24/93 SAIF Regular
MBSP Mitchell Bancorp Inc. NASDAQ Spruce Pine NC 1 07/12/96 SAIF Regular
MCBN Mid-Coast Bancorp Inc. NASDAQ Waldoboro ME 2 11/02/89 SAIF Regular
MDBK Medford Bancorp Inc. NASDAQ Medford MA 16 03/18/86 BIF Regular
MECH MECH Financial Inc. NASDAQ Hartford CT 14 06/26/96 BIF Regular
METF Metropolitan Financial Corp. NASDAQ Mayfield Heights OH 16 NA SAIF Not Avail.
MFBC MFB Corp. NASDAQ Mishawaka IN 5 03/25/94 SAIF Regular
MFFC Milton Federal Financial Corp. NASDAQ West Milton OH 3 10/07/94 SAIF Regular
MFLR Mayflower Co-operative Bank NASDAQ Middleboro MA 4 12/23/87 BIF Regular
MFSL Maryland Federal Bancorp NASDAQ Hyattsville MD 28 06/02/87 SAIF Regular
MIFC Mid-Iowa Financial Corp. NASDAQ Newton IA 7 10/14/92 SAIF Regular
MIVI Mississippi View Holding Co. NASDAQ Little Falls MN 1 03/24/95 SAIF Regular
</TABLE>
<PAGE>
Page 4 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp 108,820 108 77.51 71.75 0.00
HFFC HF Financial Corp. 570,420 101 76.93 76.48 10.62
HFGI Harrington Financial Group 553,134 81 24.47 30.23 64.59
HFNC HFNC Financial Corp. 979,554 185 81.40 44.11 37.65
HFSA Hardin Bancorp Inc. 121,148 80 50.78 63.46 24.35
HFWA Heritage Financial Corp. 322,806 98 68.58 69.89 0.00
HHFC Harvest Home Financial Corp. 90,881 75 49.77 65.96 21.98
HIFS Hingham Instit. for Savings 231,710 110 77.41 70.56 19.03
HLFC Home Loan Financial Corp. 79,773 115 69.15 60.17 0.00
HMLK Hemlock Federal Financial Corp 191,023 62 43.15 69.76 12.56
HMNF HMN Financial Inc. 732,118 99 63.02 63.79 22.85
HOMF Home Federal Bancorp 705,175 111 83.18 74.89 15.04
HPBC Home Port Bancorp Inc. 225,708 131 85.27 65.31 23.91
HRBF Harbor Federal Bancorp Inc. 231,140 86 64.20 74.80 10.93
HRZB Horizon Financial Corp. 547,146 97 79.93 82.27 0.00
HTHR Hawthorne Financial Corp. 1,046,906 114 92.15 81.08 13.85
HWEN Home Financial Bancorp 41,466 130 82.10 62.96 18.57
HZFS Horizon Financial Svcs Corp. 92,710 95 60.74 63.74 25.95
IBSF IBS Financial Corp. 752,115 40 30.47 76.48 5.56
ICBC Independence Comm. Bank Corp. 3,857,781 81 71.54 88.31 0.43
IFSB Independence Federal Svgs Bank 274,539 77 57.81 74.68 16.17
INBI Industrial Bancorp Inc. 374,035 122 88.69 72.72 9.89
IPSW Ipswich Savings Bank 237,575 113 80.89 71.81 21.06
ITLA ITLA Capital Corp. 1,010,987 100 82.98 82.79 5.98
IWBK InterWest Bancorp Inc. 2,091,022 99 58.36 59.24 33.31
JOAC Joachim Bancorp Inc. 34,229 106 74.11 70.20 0.00
JSB JSB Financial Inc. 1,563,956 93 66.95 72.10 0.00
JSBA Jefferson Savings Bancorp 1,241,864 86 72.58 84.06 5.07
JXSB Jacksonville Savings Bk (MHC) 169,648 87 76.30 87.73 0.13
JXVL Jacksonville Bancorp Inc. 237,102 92 76.03 82.91 0.87
KFBI Klamath First Bancorp 994,193 89 61.07 68.46 15.45
KNK Kankakee Bancorp Inc. 399,477 76 63.60 83.41 5.83
KSAV KS Bancorp Inc. 113,978 106 83.64 79.24 7.02
KSBK KSB Bancorp Inc. 154,637 98 79.20 80.84 9.70
KYF Kentucky First Bancorp Inc. 81,800 88 60.69 68.73 13.16
LARK Landmark Bancshares Inc. 231,267 113 73.13 64.85 18.98
LARL Laurel Capital Group Inc. 216,781 86 68.19 79.11 7.86
LFBI Little Falls Bancorp Inc. 355,443 64 42.10 65.79 23.60
LFCO Life Financial Corp. 387,187 98 60.68 61.94 15.10
LFED Leeds Federal Bankshares (MHC) 298,997 78 62.97 81.21 0.19
LISB Long Island Bancorp Inc. 6,295,868 100 59.67 59.76 28.39
LO Local Financial Corp. 2,625,181 62 39.05 62.64 32.34
LOGN Logansport Financial Corp. 88,999 104 73.75 71.16 7.30
LONF London Financial Corp. 37,916 95 76.78 80.90 4.48
LSBI LSB Financial Corp. 216,065 126 85.59 67.68 23.22
LSBX Lawrence Savings Bank 355,073 67 48.29 72.33 15.28
LVSB Lakeview Financial Corp. 472,691 67 51.25 76.30 12.83
LXMO Lexington B&L Financial Corp. 94,517 83 66.51 80.50 0.85
MAFB MAF Bancorp Inc. 3,511,185 118 79.13 66.90 23.43
MARN Marion Capital Holdings 192,532 122 84.19 69.24 7.44
MASB MASSBANK Corp. 929,450 34 29.80 87.12 0.08
MBBC Monterey Bay Bancorp Inc. 403,141 83 67.62 81.05 6.81
MBLF MBLA Financial Corp. 207,453 118 64.43 54.83 31.19
MBSP Mitchell Bancorp Inc. 36,931 133 76.80 57.55 0.00
MCBN Mid-Coast Bancorp Inc. 63,015 113 80.80 71.68 19.34
MDBK Medford Bancorp Inc. 1,120,340 70 51.63 73.36 16.81
MECH MECH Financial Inc. 945,973 87 63.18 72.50 17.07
METF Metropolitan Financial Corp. 989,706 93 76.04 81.70 12.59
MFBC MFB Corp. 290,631 127 77.18 60.57 26.57
MFFC Milton Federal Financial Corp. 226,711 100 67.07 66.91 20.58
MFLR Mayflower Co-operative Bank 131,908 75 58.05 77.27 12.13
MFSL Maryland Federal Bancorp 1,192,046 120 83.38 69.76 19.85
MIFC Mid-Iowa Financial Corp. 147,047 75 48.91 65.65 24.48
MIVI Mississippi View Holding Co. 68,619 83 66.10 79.96 0.00
</TABLE>
<PAGE>
Page 5 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. NASDAQ Crawfordsville IN 4 07/01/97 SAIF Not Avail.
MRKF Market Financial Corp. NASDAQ Mount Healthy OH 2 03/27/97 SAIF Regular
MSBF MSB Financial Inc. NASDAQ Marshall MI 2 02/06/95 SAIF Regular
MSBK Mutual Savings Bank FSB NASDAQ Bay City MI 22 07/17/92 SAIF Regular
MWBI Midwest Bancshares Inc. NASDAQ Burlington IA 5 11/12/92 SAIF Regular
MWBX MetroWest Bank NASDAQ Framingham MA 14 10/10/86 BIF Regular
MYST Mystic Financial Inc. NASDAQ Medford MA 3 01/09/98 BIF Regular
NASB NASB Financial Inc. NASDAQ Grandview MO 7 09/27/85 SAIF Not Avail.
NBCP Niagara Bancorp Inc. (MHC) NASDAQ Lockport NY 15 04/20/98 BIF Mutual HC
NBN Northeast Bancorp AMSE Auburn ME 12 08/19/87 BIF Regular
NBSI North Bancshares Inc. NASDAQ Chicago IL 2 12/21/93 SAIF Regular
NEIB Northeast Indiana Bancorp NASDAQ Huntington IN 3 06/28/95 SAIF Regular
NEP Northeast PA Financial Corp. AMSE Hazleton PA 10 04/01/98 SAIF Regular
NHTB New Hampshire Thrift Bncshrs NASDAQ Newport NH 12 05/22/86 SAIF Regular
NMSB NewMil Bancorp Inc. NASDAQ New Milford CT 15 02/01/86 BIF Regular
NSLB NS&L Bancorp Inc. NASDAQ Neosho MO 2 06/08/95 SAIF Regular
NSSY NSS Bancorp Inc. NASDAQ Norwalk CT 8 06/16/94 BIF Regular
NTBK Net.B@nk Inc. NASDAQ Alpharetta GA NA NA SAIF Not Avail.
NTMG Nutmeg Federal S&LA NASDAQ Danbury CT 3 NA SAIF Not Avail.
NWEQ Northwest Equity Corp. NASDAQ Amery WI 3 10/11/94 SAIF Regular
NWSB Northwest Bancorp Inc. (MHC) NASDAQ Warren PA 71 11/07/94 SAIF Mutual HC
OCFC Ocean Financial Corp. NASDAQ Toms River NJ 10 07/03/96 SAIF Regular
OCN Ocwen Financial Corp. NYSE West Palm Beach FL 1 NA SAIF Not Avail.
OFCP Ottawa Financial Corp. NASDAQ Holland MI 26 08/19/94 SAIF Regular
OHSL OHSL Financial Corp. NASDAQ Cincinnati OH 5 02/10/93 SAIF Regular
OSFS Ohio State Financial Services NASDAQ Bridgeport OH 2 09/29/97 SAIF Regular
OTFC Oregon Trail Financial Corp. NASDAQ Baker City OR 7 10/06/97 SAIF Regular
PBCI Pamrapo Bancorp Inc. NASDAQ Bayonne NJ 10 11/14/89 SAIF Regular
PBCT People's Bank (MHC) NASDAQ Bridgeport CT 127 07/06/88 BIF Mutual HC
PBHC Pathfinder Bancorp Inc. (MHC) NASDAQ Oswego NY 5 11/16/95 BIF Mutual HC
PBKB People's Bancshares Inc. NASDAQ New Bedford MA 13 10/30/86 BIF Regular
PBOC PBOC Holdings Inc. NASDAQ Los Angeles CA 19 NA SAIF Not Avail.
PCBC Perry County Financial Corp. NASDAQ Perryville MO 1 02/13/95 SAIF Regular
PDB Piedmont Bancorp Inc. AMSE Hillsborough NC 1 12/08/95 SAIF Regular
PEDE Great Pee Dee Bancorp NASDAQ Cheraw SC 1 12/31/97 SAIF Regular
PEEK Peekskill Financial Corp. NASDAQ Peekskill NY 3 12/29/95 SAIF Regular
PERM Permanent Bancorp Inc. NASDAQ Evansville IN 11 04/04/94 SAIF Regular
PFDC Peoples Bancorp NASDAQ Auburn IN 7 07/07/87 SAIF Regular
PFED Park Bancorp Inc. NASDAQ Chicago IL 3 08/12/96 SAIF Regular
PFFB PFF Bancorp Inc. NASDAQ Pomona CA 24 03/29/96 SAIF Regular
PFFC Peoples Financial Corp. NASDAQ Massillon OH 2 09/13/96 SAIF Regular
PFNC Progress Financial Corp. NASDAQ Blue Bell PA 11 07/18/83 SAIF Regular
PFSB PennFed Financial Services Inc NASDAQ West Orange NJ 18 07/15/94 SAIF Regular
PFSL Pocahontas Bancorp Inc. NASDAQ Pocahontas AR 6 04/01/98 SAIF Not Avail.
PHBK Peoples Heritage Finl Group NASDAQ Portland ME 186 12/04/86 BIF Regular
PHFC Pittsburgh Home Financial Corp NASDAQ Pittsburgh PA 8 04/01/96 SAIF Regular
PHSB Peoples Home Savings Bk (MHC) NASDAQ Beaver Falls PA 9 07/10/97 SAIF Mutual HC
PLSK Pulaski Savings Bank (MHC) NASDAQ Springfield NJ 6 04/03/97 SAIF Mutual HC
PRBC Prestige Bancorp Inc. NASDAQ Pleasant Hills PA 5 06/27/96 SAIF Regular
PROV Provident Financial Holdings NASDAQ Riverside CA 10 06/28/96 SAIF Regular
PSBK Progressive Bank Inc. NASDAQ Fishkill NY 17 08/01/84 BIF Regular
PSFC Peoples-Sidney Financial Corp. NASDAQ Sidney OH 1 04/28/97 SAIF Regular
PSFI PS Financial Inc. NASDAQ Chicago IL 1 11/27/96 SAIF Regular
PTRS Potters Financial Corp. NASDAQ East Liverpool OH 4 12/31/93 SAIF Regular
PULB Pulaski Bank, Svgs Bank (MHC) NASDAQ St. Louis MO 5 05/11/94 SAIF Mutual HC
PULS Pulse Bancorp NASDAQ South River NJ 5 09/18/86 SAIF Regular
PVFC PVF Capital Corp. NASDAQ Bedford Heights OH 9 12/30/92 SAIF Supervisory
PVSA Parkvale Financial Corp. NASDAQ Monroeville PA 29 07/16/87 SAIF Regular
PWBK Pennwood Bancorp Inc. NASDAQ Pittsburgh PA 3 07/15/96 SAIF Regular
QCBC Quaker City Bancorp Inc. NASDAQ Whittier CA 10 12/30/93 SAIF Regular
QCFB QCF Bancorp Inc. NASDAQ Virginia MN 2 04/03/95 SAIF Regular
QCSB Queens County Bancorp Inc. NASDAQ Flushing NY 11 11/23/93 BIF Regular
RARB Raritan Bancorp Inc. NASDAQ Bridgewater NJ 7 03/01/87 BIF Regular
RCBK Richmond County Financial Corp NASDAQ Staten Island NY 13 02/18/98 SAIF Regular
</TABLE>
<PAGE>
Page 5 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 109,134 126 90.43 71.68 8.31
MRKF Market Financial Corp. 57,756 83 52.48 63.00 0.00
MSBF MSB Financial Inc. 79,414 169 91.29 54.10 27.67
MSBK Mutual Savings Bank FSB 656,624 78 48.75 62.80 28.26
MWBI Midwest Bancshares Inc. 158,661 87 57.97 66.49 25.84
MWBX MetroWest Bank 646,567 88 72.78 82.93 8.86
MYST Mystic Financial Inc. 187,788 96 70.35 73.08 7.19
NASB NASB Financial Inc. 734,091 121 86.66 71.34 19.35
NBCP Niagara Bancorp Inc. (MHC) 1,323,466 57 48.89 85.07 2.93
NBN Northeast Bancorp 310,623 156 87.16 56.01 35.61
NBSI North Bancshares Inc. 118,477 103 64.13 61.99 24.56
NEIB Northeast Indiana Bancorp 200,306 148 88.33 59.83 26.20
NEP Northeast PA Financial Corp. 443,402 86 60.73 70.29 9.86
NHTB New Hampshire Thrift Bncshrs 320,592 93 79.30 84.94 5.96
NMSB NewMil Bancorp Inc. 370,276 60 47.05 78.14 12.02
NSLB NS&L Bancorp Inc. 61,144 76 59.50 78.12 1.64
NSSY NSS Bancorp Inc. 668,671 94 63.89 67.72 23.37
NTBK Net.B@nk Inc. 163,463 82 64.40 78.72 0.00
NTMG Nutmeg Federal S&LA 111,539 105 85.73 81.38 7.37
NWEQ Northwest Equity Corp. 99,558 129 81.80 63.25 24.47
NWSB Northwest Bancorp Inc. (MHC) 2,409,564 90 74.18 82.38 7.57
OCFC Ocean Financial Corp. 1,518,485 85 54.97 65.01 19.92
OCN Ocwen Financial Corp. 3,421,142 102 57.55 56.52 24.46
OFCP Ottawa Financial Corp. 915,465 117 85.00 72.52 17.42
OHSL OHSL Financial Corp. 251,174 90 67.34 74.79 13.89
OSFS Ohio State Financial Services 38,559 89 63.95 71.46 0.00
OTFC Oregon Trail Financial Corp. 257,049 81 58.73 72.94 0.00
PBCI Pamrapo Bancorp Inc. 381,444 71 57.21 81.04 3.63
PBCT People's Bank (MHC) 9,149,500 86 62.37 72.42 17.11
PBHC Pathfinder Bancorp Inc. (MHC) 196,190 82 64.92 78.83 8.51
PBKB People's Bancshares Inc. 862,000 129 57.94 44.80 49.02
PBOC PBOC Holdings Inc. 2,213,054 122 70.09 57.23 37.23
PCBC Perry County Financial Corp. 86,081 24 17.77 72.63 7.55
PDB Piedmont Bancorp Inc. 132,828 126 84.02 66.49 16.34
PEDE Great Pee Dee Bancorp 69,262 149 80.89 54.21 0.36
PEEK Peekskill Financial Corp. 195,847 35 24.43 70.23 5.11
PERM Permanent Bancorp Inc. 419,819 79 51.70 65.07 23.71
PFDC Peoples Bancorp 300,651 99 81.84 83.08 1.37
PFED Park Bancorp Inc. 197,350 52 36.69 70.12 8.64
PFFB PFF Bancorp Inc. 2,812,384 107 65.93 61.90 27.94
PFFC Peoples Financial Corp. 82,215 94 74.38 79.20 0.00
PFNC Progress Financial Corp. 484,809 101 71.71 70.87 18.12
PFSB PennFed Financial Services Inc 1,469,064 99 68.48 69.51 20.22
PFSL Pocahontas Bancorp Inc. 400,681 98 44.13 45.12 30.22
PHBK Peoples Heritage Finl Group 7,309,525 103 71.66 69.45 21.34
PHFC Pittsburgh Home Financial Corp 338,312 139 59.98 43.13 44.42
PHSB Peoples Home Savings Bk (MHC) 223,394 57 44.77 78.13 8.29
PLSK Pulaski Savings Bank (MHC) 190,778 63 53.25 84.80 2.93
PRBC Prestige Bancorp Inc. 160,580 112 65.06 58.27 30.50
PROV Provident Financial Holdings 764,550 116 85.62 73.67 13.03
PSBK Progressive Bank Inc. 896,110 71 63.69 89.20 0.00
PSFC Peoples-Sidney Financial Corp. 105,522 119 88.69 74.50 0.00
PSFI PS Financial Inc. 83,823 102 49.93 49.05 21.47
PTRS Potters Financial Corp. 126,578 81 65.44 80.89 9.82
PULB Pulaski Bank, Svgs Bank (MHC) 183,629 95 80.10 83.93 1.03
PULS Pulse Bancorp 540,008 33 26.35 79.28 11.79
PVFC PVF Capital Corp. 418,928 112 88.89 79.20 11.44
PVSA Parkvale Financial Corp. 1,055,508 87 75.98 87.29 3.33
PWBK Pennwood Bancorp Inc. 46,398 86 65.84 76.71 3.10
QCBC Quaker City Bancorp Inc. 859,993 119 79.09 66.50 22.38
QCFB QCF Bancorp Inc. 154,089 63 42.70 68.30 11.59
QCSB Queens County Bancorp Inc. 1,622,467 135 87.14 64.60 21.68
RARB Raritan Bancorp Inc. 418,811 81 67.11 82.59 8.38
RCBK Richmond County Financial Corp 1,463,805 61 38.77 63.61 13.66
</TABLE>
<PAGE>
Page 6 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. NASDAQ Redlands CA 15 04/08/94 SAIF Regular
RELI Reliance Bancshares Inc. NASDAQ Milwaukee WI 1 04/19/96 SAIF Regular
RELY Reliance Bancorp Inc. NASDAQ Garden City NY 30 03/31/94 SAIF Regular
RIVR River Valley Bancorp NASDAQ Madison IN 6 12/20/96 SAIF Regular
ROSE TR Financial Corp. NASDAQ Garden City NY 15 06/29/93 BIF Regular
RSLN Roslyn Bancorp Inc. NASDAQ Roslyn NY 8 01/13/97 BIF Regular
RVSB Riverview Bancorp Inc. NASDAQ Camas WA 9 10/01/97 SAIF Regular
SBAN SouthBanc Shares Inc. NASDAQ Anderson SC 6 04/15/98 SAIF Not Avail.
SBFL SB of the Finger Lakes (MHC) NASDAQ Geneva NY 5 11/11/94 SAIF Mutual HC
SBOS Boston Bancorp (The) NASDAQ South Boston MA 7 11/09/83 BIF Regular
SCBS Southern Community Bancshares NASDAQ Cullman AL 1 12/23/96 SAIF Regular
SCCB S. Carolina Community Bancshrs NASDAQ Winnsboro SC 3 07/07/94 SAIF Regular
SFED SFS Bancorp Inc. NASDAQ Schenectady NY 4 06/30/95 SAIF Regular
SFFC StateFed Financial Corp. NASDAQ Des Moines IA 2 01/05/94 SAIF Regular
SFIN Statewide Financial Corp. NASDAQ Jersey City NJ 15 10/02/95 SAIF Regular
SFSB SuburbFed Financial Corp. NASDAQ Flossmoor IL 12 03/04/92 SAIF Regular
SFSL Security First Corp. NASDAQ Mayfield Heights OH 14 01/22/88 SAIF Regular
SGVB SGV Bancorp Inc. NASDAQ West Covina CA 8 06/29/95 SAIF Regular
SHEN First Shenango Bancorp Inc. NASDAQ New Castle PA 4 04/06/93 SAIF Regular
SHSB SHS Bancorp Inc. NASDAQ Pittsburgh PA 4 10/01/97 SAIF Regular
SIB Staten Island Bancorp Inc. NYSE Staten Island NY 17 12/22/97 BIF Regular
SISB SIS Bancorp Inc. NASDAQ Springfield MA 33 02/08/95 BIF Regular
SKAN Skaneateles Bancorp Inc. NASDAQ Skaneateles NY 9 06/02/86 BIF Regular
SKBO First Carnegie Deposit (MHC) NASDAQ Carnegie PA 3 04/04/97 SAIF Mutual HC
SMBC Southern Missouri Bancorp Inc. NASDAQ Poplar Bluff MO 8 04/13/94 SAIF Regular
SOBI Sobieski Bancorp Inc. NASDAQ South Bend IN 3 03/31/95 SAIF Regular
SOPN First Savings Bancorp Inc. NASDAQ Southern Pines NC 5 01/06/94 SAIF Regular
SOSA Somerset Savings Bank NASDAQ Somerville MA 5 07/09/86 BIF Regular
SPBC St. Paul Bancorp Inc. NASDAQ Chicago IL 53 05/18/87 SAIF Regular
SRN Southern Banc Co. AMSE Gadsden AL 4 10/05/95 SAIF Regular
SSB Scotland Bancorp Inc. AMSE Laurinburg NC 2 04/01/96 SAIF Regular
SSFC South Street Financial Corp. NASDAQ Albemarle NC 2 10/03/96 SAIF Regular
SSM Stone Street Bancorp Inc. AMSE Mocksville NC 2 04/01/96 SAIF Regular
STFR St. Francis Capital Corp. NASDAQ Brookfield WI 25 06/21/93 SAIF Regular
STSA Sterling Financial Corp. NASDAQ Spokane WA 41 NA SAIF Not Avail.
SVRN Sovereign Bancorp Inc. NASDAQ Wyomissing PA 179 08/12/86 SAIF Regular
SWBI Southwest Bancshares Inc. NASDAQ Hometown IL 6 06/24/92 SAIF Regular
SWCB Sandwich Bancorp Inc. NASDAQ Sandwich MA 11 07/25/86 BIF Regular
SZB SouthFirst Bancshares Inc. AMSE Sylacauga AL 4 02/14/95 SAIF Regular
THR Three Rivers Financial Corp. AMSE Three Rivers MI 5 08/24/95 SAIF Regular
THRD TF Financial Corp. NASDAQ Newtown PA 14 07/13/94 SAIF Regular
TPNZ Tappan Zee Financial Inc. NASDAQ Tarrytown NY 1 10/05/95 SAIF Regular
TRIC Tri-County Bancorp Inc. NASDAQ Torrington WY 2 09/30/93 SAIF Regular
TSBK Timberland Bancorp Inc. NASDAQ Hoquiam WA 8 01/13/98 SAIF Regular
TSBS Peoples Bancorp Inc. NASDAQ Lawrenceville NJ 14 04/09/98 BIF Not Avail.
TSH Teche Holding Co. AMSE Franklin LA 9 04/19/95 SAIF Regular
TWIN Twin City Bancorp NASDAQ Bristol TN 3 01/04/95 SAIF Regular
UBMT United Financial Corp. NASDAQ Great Falls MT 5 NA SAIF Not Avail.
UCBC Union Community Bancorp NASDAQ Crawfordsville IN 1 12/29/97 SAIF Regular
UFRM United Federal Savings Bank NASDAQ Rocky Mount NC 13 07/01/80 SAIF Regular
UPFC United PanAm Financial Corp. NASDAQ San Mateo CA 5 NA SAIF Not Avail.
USAB USABancshares Inc. NASDAQ Philadelphia PA 3 NA BIF Not Avail.
UTBI United Tennessee Bankshares NASDAQ Newport TN 2 01/05/98 SAIF Regular
WAMU Washington Mutual Inc. NASDAQ Seattle WA 914 03/11/83 BIF Regular
WAYN Wayne Savings Bancshares (MHC) NASDAQ Wooster OH 6 06/25/93 SAIF Mutual HC
WBST Webster Financial Corp. NASDAQ Waterbury CT 110 12/12/86 SAIF Regular
WCBI Westco Bancorp Inc. NASDAQ Westchester IL 1 06/26/92 SAIF Regular
WCFB Webster City Federal SB (MHC) NASDAQ Webster City IA 1 08/15/94 SAIF Mutual HC
WEFC Wells Financial Corp. NASDAQ Wells MN 7 04/11/95 SAIF Regular
WEHO Westwood Homestead Fin. Corp. NASDAQ Cincinnati OH 2 09/30/96 SAIF Regular
WES Westcorp NYSE Irvine CA 26 05/01/86 SAIF Not Avail.
WFI Winton Financial Corp. AMSE Cincinnati OH 5 08/04/88 SAIF Regular
WFSL Washington Federal Inc. NASDAQ Seattle WA 105 11/17/82 SAIF Regular
WHGB WHG Bancshares Corp. NASDAQ Lutherville MD 5 04/01/96 SAIF Regular
</TABLE>
<PAGE>
Page 6 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. 1,033,586 107 88.83 83.26 6.65
RELI Reliance Bancshares Inc. 44,174 156 61.73 39.54 9.06
RELY Reliance Bancorp Inc. 2,179,754 62 45.07 73.08 16.53
RIVR River Valley Bancorp 133,848 97 82.00 84.89 0.00
ROSE TR Financial Corp. 4,005,695 101 53.61 53.27 38.09
RSLN Roslyn Bancorp Inc. 3,706,388 54 29.46 54.13 26.31
RVSB Riverview Bancorp Inc. 273,174 91 59.89 65.83 10.82
SBAN SouthBanc Shares Inc. 385,361 93 51.21 54.98 10.11
SBFL SB of the Finger Lakes (MHC) 250,845 65 48.72 74.46 15.92
SBOS Boston Bancorp (The) 1,715,070 24 19.25 78.85 7.61
SCBS Southern Community Bancshares 72,447 82 65.12 79.73 0.00
SCCB S. Carolina Community Bancshrs 46,305 99 77.59 78.73 0.00
SFED SFS Bancorp Inc. 175,420 91 78.53 86.19 0.00
SFFC StateFed Financial Corp. 89,573 129 77.89 60.33 21.20
SFIN Statewide Financial Corp. 670,561 74 49.57 67.41 21.77
SFSB SuburbFed Financial Corp. 446,475 92 65.88 71.89 20.02
SFSL Security First Corp. 685,482 125 92.29 74.13 15.33
SGVB SGV Bancorp Inc. 401,065 107 77.37 72.34 18.73
SHEN First Shenango Bancorp Inc. 403,146 93 63.62 68.31 17.87
SHSB SHS Bancorp Inc. 88,408 87 64.76 74.33 10.35
SIB Staten Island Bancorp Inc. 2,671,414 71 43.10 61.10 11.23
SISB SIS Bancorp Inc. 1,793,968 66 47.97 72.99 17.28
SKAN Skaneateles Bancorp Inc. 257,605 98 83.33 84.76 7.10
SKBO First Carnegie Deposit (MHC) 143,650 81 43.54 53.81 27.58
SMBC Southern Missouri Bancorp Inc. 157,438 110 75.52 68.55 13.70
SOBI Sobieski Bancorp Inc. 89,848 119 79.74 67.03 17.75
SOPN First Savings Bancorp Inc. 299,802 96 68.04 71.10 5.00
SOSA Somerset Savings Bank 533,020 92 78.11 84.89 7.21
SPBC St. Paul Bancorp Inc. 4,583,390 104 73.33 70.48 18.82
SRN Southern Banc Co. 105,719 46 37.48 81.61 0.00
SSB Scotland Bancorp Inc . 61,278 95 69.78 73.72 0.00
SSFC South Street Financi al Corp. 216,977 75 51.03 67.69 15.21
SSM Stone Street Bancorp Inc. 110,961 142 86.81 61.06 8.97
STFR St. Francis Capital Corp. 1,647,880 72 47.65 66.10 24.92
STSA Sterling Financial C orp. 1,888,214 109 59.49 54.34 36.40
SVRN Sovereign Bancorp In c. 18,096,121 116 59.15 51.10 39.56
SWBI Southwest Bancshares Inc. 392,962 90 70.25 78.20 8.61
SWCB Sandwich Bancorp Inc . 526,529 87 70.22 81.05 9.04
SZB SouthFirst Bancshare s Inc. 162,279 83 63.81 76.47 11.06
THR Three Rivers Financi al Corp. 98,063 104 65.17 62.43 22.17
THRD TF Financial Corp. 639,455 54 37.94 70.47 20.07
TPNZ Tappan Zee Financial Inc. 129,345 56 45.09 81.17 0.00
TRIC Tri-County Bancorp I nc. 89,263 93 47.05 50.33 32.64
TSBK Timberland Bancorp I nc. 261,446 114 71.72 62.74 4.66
TSBS Peoples Bancorp Inc. 888,872 82 46.84 57.43 3.38
TSH Teche Holding Co. 407,265 125 85.67 68.30 16.98
TWIN Twin City Bancorp 110,366 85 71.22 83.33 2.27
UBMT United Financial Cor p. 197,271 75 56.38 74.95 8.28
UCBC Union Community Banc orp 108,079 134 76.99 57.26 1.66
UFRM United Federal Savin gs Bank 305,650 97 85.53 87.80 1.64
UPFC United PanAm Financi al Corp. 310,842 118 88.48 75.02 15.17
USAB USABancshares Inc. 102,535 73 58.46 80.44 6.47
UTBI United Tennessee Ban kshares 75,053 90 64.19 71.53 0.00
WAMU Washington Mutual In c. 103,123,908 135 67.37 49.76 40.92
WAYN Wayne Savings Bancsh ares (MHC) 259,752 96 80.31 83.78 6.16
WBST Webster Financial Corp. 7,558,815 87 51.16 58.80 32.58
WCBI Westco Bancorp Inc. 319,130 93 76.2 82 0.00
WCFB Webster City Federal SB (MHC) 93,922 80 58.27 73.05 1.51
WEFC Wells Financial Corp. 209,442 122 85.59 70.00 14.09
WEHO Westwood Homestead Fin. Corp. 129,872 144 92.40 64.28 12.14
WES Westcorp 3,812,806 89 50.43 56.65 18.65
WFI Winton Financial Corp. 344,861 119 87.07 72.96 18.67
WFSL Washington Federal Inc. 5,633,772 142 74.13 52.27 32.10
WHGB WHG Bancshares Corp. 118,467 93 65.53 70.81 10.97
</TABLE>
<PAGE>
Page 7 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. NASDAQ Springfield OH 10 07/29/94 SAIF Regular
WRNB Warren Bancorp Inc. NASDAQ Peabody MA 6 07/09/86 BIF Regular
WSB Washington Savings Bank, FSB AMSE Bowie MD 5 NA SAIF Not Avail.
WSBI Warwick Community Bancorp NASDAQ Warwick NY 4 12/23/97 BIF Regular
WSFS WSFS Financial Corp. NASDAQ Wilmington DE 17 11/26/86 BIF Regular
WSTR WesterFed Financial Corp. NASDAQ Missoula MT 34 01/10/94 SAIF Regular
WVFC WVS Financial Corp. NASDAQ Pittsburgh PA 6 11/29/93 SAIF Regular
WYNE Wayne Bancorp Inc. NASDAQ Wayne NJ 6 06/27/96 SAIF Regular
YFCB Yonkers Financial Corp. NASDAQ Yonkers NY 5 04/18/96 SAIF Regular
YFED York Financial Corp. NASDAQ York PA 22 02/01/84 SAIF Regular
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Page 7 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
----------------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name ($000) (%) (%) (%) (%)
- -------------------------------------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 365,426 105 73.41 70.11 14.73
WRNB Warren Bancorp Inc. 372,529 76 66.41 87.41 0.78
WSB Washington Savings Bank, FSB 265,742 52 45.84 88.78 2.01
WSBI Warwick Community Bancorp 370,842 88 49.27 56.11 16.92
WSFS WSFS Financial Corp. 1,534,551 98 49.26 50.43 42.26
WSTR WesterFed Financial Corp. 1,023,174 105 66.04 63.00 24.03
WVFC WVS Financial Corp. 297,814 99 55.02 55.42 31.55
WYNE Wayne Bancorp Inc. 272,007 93 69.64 74.83 11.76
YFCB Yonkers Financial Corp. 343,861 71 47.04 66.49 20.10
YFED York Financial Corp. 1,217,774 96 83.31 86.83 2.24
----------------------------------------------------------------
Average 1,615,712 97.64 67.09 69.96 15.07
</TABLE>
<PAGE>
Page 8 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Corporate
-------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- --------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. NASDAQ Centralia IL 2 10/09/95 SAIF Regular
FLKY First Lancaster Bancshares NASDAQ Lancaster KY 1 07/01/96 SAIF Regular
GLMR Gilmer Financial Svcs, Inc. NASDAQ Gilmer TX 1 02/09/95 SAIF Regular
HBBI Home Building Bancorp NASDAQ Washington IN 2 02/08/95 SAIF Regular
HWEN Home Financial Bancorp NASDAQ Spencer IN 1 07/02/96 SAIF Regular
LONF London Financial Corp. NASDAQ London OH 1 04/01/96 SAIF Regular
MBSP Mitchell Bancorp Inc. NASDAQ Spruce Pine NC 1 07/12/96 SAIF Regular
PWBK Pennwood Bancorp Inc. NASDAQ Pittsburgh PA 3 07/15/96 SAIF Regular
RELI Reliance Bancshares Inc. NASDAQ Milwaukee WI 1 04/19/96 SAIF Regular
SCCB S. Carolina Community Bancshrs NASDAQ Winnsboro SC 3 07/07/94 SAIF Regular
- --------------------------------------- -----------------------------------------------------------------------------------------
Average
Median
Maximum
Minimum
Farnsworth Bancorp, Inc.
Variance to the Comparable Median
</TABLE>
<PAGE>
Page 8 of 40
Continued
<TABLE>
<CAPTION>
Key Financial Data as of The Most Recent Quarter
-------------------------------------------------------
Total Loans/ Loans/ Deposits/ Borrowings/
Assets Deposits Assets Assets Assets
Ticker Short Name (000) (%) (%) (%) %
-------------------------------- -------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 47,983 75.83 57.68 76.06 0.00
FLKY First Lancaster Bancshares 53,002 194.98 89.82 46.07 25.88
GLMR Gilmer Financial Svcs, Inc. 42,171 81.48 56.24 69.02 20.27
HBBI Home Building Bancorp 42,430 90.16 68.17 75.61 9.43
HWEN Home Financial Bancorp 41,466 130.40 82.10 62.96 18.57
LONF London Financial Corp. 37,916 94.91 76.78 80.90 4.48
MBSP Mitchell Bancorp Inc. 36,931 133.45 76.80 57.55 0.00
PWBK Pennwood Bancorp Inc. 46,398 85.83 65.84 76.71 3.10
RELI Reliance Bancshares Inc. 44,174 156.11 61.73 39.54 9.06
SCCB S. Carolina Community Bancshrs 46,305 98.55 77.59 78.73 0.00
- ---------------------------------------------------- -------------------------------------------------------
Average 43,878 114.17 71.28 66.32 9.08
Median 43,302 96.73 72.48 72.32 6.77
Maximum 53,002 194.98 89.82 80.90 25.88
Minimum 36,931 75.83 56.24 39.54 0.00
Farnsworth Bancorp, Inc. 38,685 78.71 73.10 93.29 0.00
Variance to the Comparable Median (4,617) (18.02) 0.63 20.97 (6.77)
</TABLE>
<PAGE>
Page 9 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 7.05 5.07 29.62 5.53 8.35 11.70
%CCMD Chevy Chase Bank, FSB 5.94 4.96 17.27 6.52 7.59 12.18
AABC Access Anytime Bancorp Inc. 8.09 8.09 0.00 7.28 8.56 15.50
ABBK Abington Bancorp Inc. 6.29 5.75 9.15 5.46 6.74 11.87
ABCL Alliance Bancorp 8.59 8.50 1.13 7.39 8.94 15.51
ABCW Anchor BanCorp Wisconsin 6.40 6.30 1.59 5.64 7.49 10.18
AFBC Advance Financial Bancorp 14.09 14.09 0.00 14.20 14.40 21.90
AFCB Affiliated Community Bancorp 10.17 10.12 0.47 10.00 10.94 19.34
AFED AFSALA Bancorp Inc. 12.13 12.13 0.00 12.14 12.82 30.66
AHCI Ambanc Holding Co. 11.69 11.69 0.00 8.80 12.45 22.06
AHM H.F. Ahmanson & Co. 5.97 4.60 24.11 5.97 6.85 11.81
ALBC Albion Banc Corp. 8.54 8.54 0.00 NA 8.92 NA
ALBK ALBANK Financial Corp. 8.97 7.16 21.79 8.26 9.70 14.16
ALLB Alliance Bank (MHC) 10.72 10.72 0.00 10.77 11.3 26.24
AMFC AMB Financial Corp. 14.10 14.10 0.00 9.37 14.51 17.70
ANA Acadiana Bancshares Inc. 15.34 15.34 0.00 12.47 16.29 24.36
ANDB Andover Bancorp Inc. 7.93 7.93 0.00 8.10 8.84 15.00
ANE Alliance Bncp of New England 7.97 7.79 2.41 7.60 9.22 13.20
ASBI Ameriana Bancorp 11.64 11.45 1.85 9.96 11.94 18.39
ASBP ASB Financial Corp. 15.20 15.20 0.00 12.66 15.9 27.13
ASFC Astoria Financial Corp. 8.41 6.23 27.63 5.42 8.78 14.90
ATSB AmTrust Capital Corp. 10.83 10.73 0.99 10.00 11.55 17.00
AVND Avondale Financial Corp. 7.60 7.60 0.00 7.34 8.56 15.49
BANC BankAtlantic Bancorp Inc. 6.15 5.21 16.19 9.81 7.00 16.18
BDJI First Federal Bancorp. 10.90 10.90 0.00 9.90 11.28 19.67
BFD BostonFed Bancorp Inc. 7.88 7.61 3.61 NA 8.57 NA
BFFC Big Foot Financial Corp. 18.28 18.28 0.00 12.87 18.42 33.62
BFSB Bedford Bancshares Inc. 13.29 13.29 0.00 11.82 13.77 24.07
BKC American Bank of Connecticut 9.02 8.76 3.13 7.66 9.94 13.65
BKCT Bancorp Connecticut Inc. 10.04 10.04 0.00 9.87 11.16 16.71
BKUNA BankUnited Financial Corp. 4.64 4.08 12.55 9.02 4.78 18.94
BNKU Bank United Corp. 4.98 4.52 9.63 7.06 5.32 11.59
BPLS Bank Plus Corp. 4.40 4.04 8.47 5.47 5.53 11.69
BRKL Brookline Bancorp (MHC) 33.22 33.22 0.00 34.80 34.74 NA
BTHL Bethel Bancorp 8.48 7.36 14.28 7.38 9.63 13.39
BVCC Bay View Capital Corp. 7.28 4.78 36.01 6.34 8.19 11.12
BWFC Bank West Financial Corp. 13.01 13.01 0.00 11.69 13.16 21.10
BYFC Broadway Financial Corp. 10.56 10.56 0.00 8.52 11.40 14.65
BYS Bay State Bancorp 21.53 21.53 0.00 NA 22.38 NA
CAFI Camco Financial Corp. 9.9 9.34 6.17 8.80 10.19 16.25
CAPS Capital Savings Bancorp Inc. 10.13 10.13 0.00 8.76 10.48 17.81
CASB Cascade Financial Corp. 6.98 6.98 0.00 6.94 7.92 11.81
CASH First Midwest Financial Inc. 10.39 9.35 11.11 8.28 11.26 13.65
CATB Catskill Financial Corp. 23.42 23.42 0.00 20.88 24.07 60.42
CAVB Cavalry Bancorp Inc. 28.42 28.42 0.00 21.70 29.23 28.80
CBCI Calumet Bancorp Inc. 17.49 17.49 0.00 10.72 18.68 17.49
CBES CBES Bancorp Inc. 14.23 14.23 0.00 11.75 14.72 14.32
CBK Citizens First Financial Corp. 13.84 13.84 0.00 11.20 14.17 18.10
CBSA Coastal Bancorp Inc. 3.73 3.23 13.80 5.69 4.02 11.82
CCFH CCF Holding Co. 8.09 8.09 0.00 7.24 8.60 11.67
CEBK Central Co-operative Bank 9.82 8.97 9.58 NA 10.61 NA
CENB Century Bancorp Inc. 17.75 17.75 0.00 17.75 18.29 44.73
CFB Commercial Federal Corp. 6.91 6.10 12.59 6.71 7.58 13.51
CFCP Coastal Financial Corp. 6.03 6.03 0.00 6.31 6.93 11.58
CFFC Community Financial Corp. 13.63 13.58 0.44 11.68 14.2 17.45
CFKY Columbia Financial of Kentucky 10.41 10.41 0.00 10.30 10.64 28.00
CFNC Carolina Fincorp Inc. 22.35 22.35 0.00 15.10 22.7 28.63
CFSB CFSB Bancorp Inc. 7.72 7.72 0.00 7.45 8.29 13.46
CFTP Community Federal Bancorp 23.61 23.61 0.00 20.64 23.85 51.03
CIBI Community Investors Bancorp 10.99 10.99 0.00 10.39 11.49 19.86
CKFB CKF Bancorp Inc. 21.34 21.34 0.00 16.86 21.54 28.96
CLAS Classic Bancshares Inc. 15.06 13.14 14.67 11.60 15.68 23.50
CMRN Cameron Financial Corp 20.78 20.78 0.00 16.28 21.56 24.81
CMSB Commonwealth Bancorp Inc. 9.13 7.43 20.09 6.50 9.50 13.30
</TABLE>
<PAGE>
Page 9 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
--------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- --------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 1.05 187.89 0.95 13.44 1.97 137.83 1.08 14.75
%CCMD Chevy Chase Bank, FSB 1.03 377.34 1.76 29.57 3.87 76.88 0.66 11.37
AABC Access Anytime Bancorp Inc. 0.07 NM 0.14 1.72 0.77 335.63 1.46 18.17
ABBK Abington Bancorp Inc. 0.14 520.00 0.13 2.14 0.72 310.69 0.87 12.67
ABCL Alliance Bancorp 0.27 203.04 0.22 2.62 0.56 156.51 0.90 9.73
ABCW Anchor BanCorp Wisconsin 0.27 492.40 0.68 10.62 1.34 160.68 1.05 16.20
AFBC Advance Financial Bancorp 0.23 152.94 0.20 1.42 0.35 51.29 0.90 5.92
AFCB Affiliated Community Bancorp 0.66 186.52 0.41 4.06 1.24 186.48 1.09 11.08
AFED AFSALA Bancorp Inc. 0.73 199.30 0.37 3.06 1.46 185.39 0.76 5.85
AHCI Ambanc Holding Co. 0.93 147.90 0.54 4.63 1.37 122.28 0.51 4.20
AHM H.F. Ahmanson & Co. 2.70 48.85 2.14 35.87 1.32 41.19 0.88 16.89
ALBC Albion Banc Corp. 0.74 67.74 0.55 6.47 0.50 67.74 0.48 5.60
ALBK ALBANK Financial Corp. 0.88 118.45 0.72 8.07 1.05 78.98 1.16 12.79
ALLB Alliance Bank (MHC) 0.57 176.68 1.23 11.52 1.02 41.98 0.79 7.02
AMFC AMB Financial Corp. 0.39 132.82 0.33 2.36 0.52 122.66 1.02 6.94
ANA Acadiana Bancshares Inc. 0.43 296.18 0.33 2.12 1.28 292.15 1.08 6.43
ANDB Andover Bancorp Inc. 0.64 194.10 0.49 6.20 1.24 184.92 1.07 13.41
ANE Alliance Bncp of New England 1.71 114.77 1.40 17.61 1.96 82.82 0.91 12.56
ASBI Ameriana Bancorp 0.54 76.20 0.44 3.80 0.41 64.16 0.96 8.58
ASBP ASB Financial Corp. 0.08 NM 0.05 0.36 1.03 513.38 0.95 6.12
ASFC Astoria Financial Corp. 0.78 109.85 0.48 5.76 0.85 67.50 0.82 10.04
ATSB AmTrust Capital Corp. 2.37 43.83 1.81 16.68 1.04 40.38 0.41 3.87
AVND Avondale Financial Corp. 2.41 95.84 1.14 15.05 2.31 84.08 (0.77) (9.13)
BANC BankAtlantic Bancorp Inc. 0.95 118.12 0.97 15.82 1.12 72.73 0.91 15.43
BDJI First Federal Bancorp. 0.36 221.32 0.17 1.61 0.81 161.48 0.68 6.40
BFD BostonFed Bancorp Inc. 0.16 536.44 0.15 1.88 0.84 467.89 0.72 8.27
BFFC Big Foot Financial Corp. 0.18 150.75 0.09 0.52 0.28 150.75 0.58 3.30
BFSB Bedford Bancshares Inc. - NM 0 0.00 0.60 112.25 1.20 8.48
BKC American Bank of Connecticut 3.39 45.46 2.28 25.33 1.54 40.39 1.34 15.97
BKCT Bancorp Connecticut Inc. 1.03 200.41 0.74 7.39 2.06 151.22 1.43 13.85
BKUNA BankUnited Financial Corp. 0.49 39.09 0.44 9.53 0.19 32.93 0.37 6.96
BNKU Bank United Corp. 0.66 67.53 0.65 13.08 0.44 52.00 0.88 17.31
BPLS Bank Plus Corp. 2.03 81.95 1.64 37.24 1.66 69.52 0.31 6.83
BRKL Brookline Bancorp (MHC) 0.50 455.72 0.62 1.87 2.30 245.94 1.95 9.50
BTHL Bethel Bancorp NA NA NA NA 1.48 NA 0.68 7.97
BVCC Bay View Capital Corp. 0.35 345.10 0.37 5.11 1.22 244.94 0.37 5.78
BWFC Bank West Financial Corp. 0.32 71.28 0.44 3.39 0.23 35.64 0.66 4.69
BYFC Broadway Financial Corp. 0.98 102.95 1.22 11.54 1.01 69.07 0.52 4.80
BYS Bay State Bancorp 1.00 110.27 0.77 3.58 1.1 110.27 (0.66) (4.22)
CAFI Camco Financial Corp. 0.45 77.87 0.50 5.06 0.35 43.07 1.25 13.02
CAPS Capital Savings Bancorp Inc. 0.20 220.38 0.21 2.09 0.43 91.74 1.09 11.90
CASB Cascade Financial Corp. 0.37 294.74 0.42 5.96 1.08 226.15 0.77 11.46
CASH First Midwest Financial Inc. 1.17 120.33 1.11 10.64 1.40 78.58 0.59 5.36
CATB Catskill Financial Corp. 0.50 296.88 0.29 1.26 1.49 219.08 1.34 5.37
CAVB Cavalry Bancorp Inc. 0.02 NM 0.01 0.04 1.23 NM NA NA
CBCI Calumet Bancorp Inc. 0.85 181.22 1.45 8.27 1.53 82.15 2.08 12.95
CBES CBES Bancorp Inc. 0.56 96.93 0.53 3.73 0.54 92.07 1.03 6.24
CBK Citizens First Financial Corp. 0.45 90.61 0.62 4.47 0.41 47.08 0.72 5.15
CBSA Coastal Bancorp Inc. 0.98 65.52 0.57 15.23 0.64 50.93 0.49 14.01
CCFH CCF Holding Co. 0.54 123.98 0.41 5.08 0.67 123.98 0.14 1.51
CEBK Central Co-operative Bank 0.58 185.68 0.42 4.30 1.08 185.68 0.82 8.11
CENB Century Bancorp Inc. 0.50 164.62 0.37 2.10 0.82 144.73 1.32 4.63
CFB Commercial Federal Corp. 0.82 108.43 0.83 12.05 0.88 79.52 0.81 12.79
CFCP Coastal Financial Corp. 1.18 103.54 0.91 15.03 1.22 98.94 1.25 20.01
CFFC Community Financial Corp. 0.32 203.68 0.44 3.25 0.65 129.75 1.07 7.85
CFKY Columbia Financial of Kentucky NA NA NA NA 0.49 NA NA NA
CFNC Carolina Fincorp Inc. 0.22 226.37 0.15 0.69 0.49 226.37 0.93 4.07
CFSB CFSB Bancorp Inc. 0.09 730.43 0.08 1.01 0.65 724.89 1.32 16.97
CFTP Community Federal Bancorp 0.77 57.84 0.49 2.08 0.44 48.59 1.20 4.45
CIBI Community Investors Bancorp 0.04 NM 0.05 0.45 0.61 89.73 0.95 8.17
CKFB CKF Bancorp Inc. - NM 0.00 0.00 0.23 48.87 1.87 8.15
CLAS Classic Bancshares Inc. 0.25 374.21 0.34 2.25 0.92 148.74 0.83 5.58
CMRN Cameron Financial Corp 0.40 232.03 0.34 1.65 0.94 95.78 1.15 5.37
CMSB Commonwealth Bancorp Inc. 0.62 101.78 0.42 4.56 0.64 90.64 0.68 7.24
</TABLE>
<PAGE>
Page 10 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 10.80 10.80 0.00 9.50 11.16 18.26
CNIT CENIT Bancorp Inc. 6.88 6.38 7.76 NA 7.39 NA
CNSB CNS Bancorp Inc. 24.68 24.68 0.00 19.90 25.09 40.31
CNY Carver Bancorp Inc. 8.25 7.98 3.46 NA 8.91 NA
COFI Charter One Financial 7.37 6.94 6.18 6.01 7.95 10.41
CONE Conestoga Bancorp, Inc. 16.18 16.18 0.00 12.17 16.22 27.71
COOP Cooperative Bankshares Inc. 7.64 7.64 0.00 7.64 7.90 14.89
CRSB Crusader Holding Corp. 10.94 NA NA 10.46 11.31 20.79
CRZY Crazy Woman Creek Bancorp 23.58 23.58 0.00 18.56 24.03 47.34
CSBF CSB Financial Group Inc. 23.14 22.12 5.66 22.35 23.52 47.75
CTZN CitFed Bancorp Inc. 6.26 5.79 7.88 5.80 6.70 NA
CVAL Chester Valley Bancorp Inc. 8.67 8.67 0.00 8.36 9.61 14.63
DCBI Delphos Citizens Bancorp Inc. 24.96 24.96 0.00 12.40 25.06 25.20
DIBK Dime Financial Corp. 8.11 7.93 2.40 8.13 9.28 21.79
DIME Dime Community Bancorp Inc. 12.00 10.61 13.01 8.21 12.77 16.91
DME Dime Bancorp Inc. 5.90 4.88 18.16 5.86 6.40 11.10
DNFC D & N Financial Corp. 5.44 5.40 0.85 6.53 6.02 11.68
DSL Downey Financial Corp. 7.6 7.52 1.13 6.83 8.14 12.92
EBI Equality Bancorp Inc. 11.18 11.18 0.00 9.60 11.31 25.90
EBSI Eagle Bancshares 7.83 7.83 0.00 5.91 8.50 9.08
EFBC Empire Federal Bancorp Inc. 36.76 36.76 0.00 24.69 36.94 69.10
EFBI Enterprise Federal Bancorp 9.96 9.73 2.48 6.80 10.15 13.40
EFC EFC Bancorp Inc. 7.33 7.33 0.00 8.41 7.59 15.08
EGLB Eagle BancGroup Inc. 11.47 11.47 0.00 9.61 11.99 16.01
EMLD Emerald Financial Corp. 8.26 8.16 1.25 7.94 8.54 12.38
EQSB Equitable Federal Savings Bank 5.18 5.18 0.00 5.18 NA 12.05
ESBF ESB Financial Corp. 7.2 6.47 10.76 6.69 7.71 19.20
ESBK Elmira Savings Bank (The) 6.21 6.21 0.00 6.24 6.88 10.25
ESX Essex Bancorp Inc. 7.73 7.66 0.97 8.00 8.93 14.44
ETFS East Texas Financial Services 17.43 17.43 0.00 14.90 17.62 39.00
FAB FIRSTFED AMERICA BANCORP INC. 9.91 9.91 0.00 8.54 10.76 18.35
FBBC First Bell Bancorp Inc. 11.22 11.22 0.00 10.92 11.33 23.53
FBCI Fidelity Bancorp Inc. 10.79 10.77 0.16 9.22 10.88 19.61
FBCV 1ST Bancorp 9.02 8.89 1.66 8.50 9.48 15.21
FBER 1st Bergen Bancorp 11.69 11.69 0.00 10.10 12.68 25.66
FBHC Fort Bend Holding Corp. 6.77 6.37 6.25 7.40 7.30 15.16
FBNW FirstBank Corp. 16.35 16.35 0.00 11.56 16.96 18.05
FBSI First Bancshares Inc. 13.42 12.93 4.24 10.43 13.72 15.86
FCB Falmouth Bancorp Inc. 22.40 22.40 0.00 14.52 22.89 25.87
FCBF FCB Financial Corp. 14.10 14.10 0.00 11.51 14.79 19.79
FCBH Virginia Beach Fed. Financial 7.14 7.14 0.00 6.93 7.83 12.28
FCBK First Coastal Bankshares 7.14 7.14 0.00 6.93 7.83 12.28
FCME First Coastal Corp. 10.06 10.06 0.00 9.65 11.85 16.43
FDEF First Defiance Financial 17.64 17.64 0.00 14.12 18.12 21.97
FED FirstFed Financial Corp. 5.72 5.68 0.71 6.59 7.83 12.81
FESX First Essex Bancorp Inc. 7.05 6.26 11.84 6.17 7.87 12.21
FFBA First Colorado Bancorp Inc. 13.65 13.42 1.96 12.91 13.96 24.43
FFBH First Federal Bancshares of AR 14.77 14.77 0.00 11.77 14.95 22.35
FFBI First Financial Bancorp Inc. 9.23 9.23 0.00 8.67 9.87 15.38
FFBS FFBS BanCorp Inc. 16.71 16.71 0.00 14.04 17.13 26.11
FFBZ First Federal Bancorp Inc. 7.62 7.61 0.09 6.75 8.63 11.27
FFCH First Financial Holdings Inc. 6.36 6.36 0.00 6.58 7.01 10.93
FFDB FirstFed Bancorp Inc. 9.69 8.97 8.17 8.91 10.34 17.01
FFDF FFD Financial Corp. 22.28 22.28 0.00 NA 22.55 NA
FFED Fidelity Federal Bancorp 6.78 6.78 0.00 8.67 9.11 13.26
FFES First Federal of East Hartford 6.92 6.92 0.00 7.01 7.18 22.18
FFFD North Central Bancshares Inc. 15.42 13.70 12.96 11.63 16.19 23.42
FFFL Fidelity Bankshares Inc. (MHC) 6.70 6.51 3.02 8.70 6.95 17.70
FFHH FSF Financial Corp. 10.40 10.40 0.00 8.90 10.63 16.20
FFHS First Franklin Corp. 9.24 9.20 0.44 6.50 9.69 14.52
FFIC Flushing Financial Corp. 12.72 12.29 3.85 9.39 13.33 20.52
FFKY First Federal Financial Corp. 13.21 12.60 5.29 11.98 13.66 19.30
FFLC FFLC Bancorp Inc. 12.71 12.71 0.00 10.30 13.16 19.69
FFOH Fidelity Financial of Ohio 12.06 10.83 11.44 10.27 12.36 19.01
</TABLE>
<PAGE>
Page 10 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
--------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- ------ --------------------------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 0.22 252.30 0.26 2.43 0.55 134.87 0.74 6.54
CNIT CENIT Bancorp Inc. 0.17 425.78 0.24 3.50 0.72 145.18 0.92 12.78
CNSB CNS Bancorp Inc. 0.14 422.34 0.10 0.39 0.59 422.34 0.90 3.66
CNY Carver Bancorp Inc. NA NA NA NA 1.04 NA 0.24 2.99
COFI Charter One Financial 0.36 242.54 0.32 4.34 0.87 151.36 0.84 11.82
CONE Conestoga Bancorp, Inc. 0.23 80.00 0.16 0.99 0.18 26.87 0.66 4.10
COOP Cooperative Bankshares Inc. - NM 0.01 0.15 0.35 167.34 0.63 8.16
CRSB Crusader Holding Corp. 0.85 52.10 0.72 6.54 0.44 52.10 NA NA
CRZY Crazy Woman Creek Bancorp 0.18 511.11 0.09 0.37 0.94 511.11 1.27 5.18
CSBF CSB Financial Group Inc. NA NA NA NA 0.66 39.74 0.54 2.25
CTZN CitFed Bancorp Inc. 0.43 182.99 0.32 5.10 0.78 137.85 0.89 14.13
CVAL Chester Valley Bancorp Inc. 0.31 390.28 0.24 2.8 1.21 390.28 1.03 11.92
DCBI Delphos Citizens Bancorp Inc. - NM 0.00 0.00 0.12 17.75 1.52 5.60
DIBK Dime Financial Corp. 0.65 490.13 0.29 3.54 3.17 396.36 1.70 21.20
DIME Dime Community Bancorp Inc. 0.73 186.44 0.48 3.99 1.36 159.03 0.85 6.32
DME Dime Bancorp Inc. 1.22 54.00 1.03 17.46 0.66 48.09 0.70 12.52
DNFC D & N Financial Corp. 0.66 116.04 0.56 10.32 0.77 101.76 0.87 15.90
DSL Downey Financial Corp. 0.72 82.37 0.85 11.15 0.59 63.98 0.86 12.06
EBI Equality Bancorp Inc. 0.79 32.16 0.39 3.48 0.25 31.69 0.55 8.13
EBSI Eagle Bancshares 1.31 70.43 1.18 15.04 0.92 56.90 0.64 7.50
EFBC Empire Federal Bancorp Inc. - NM 0.00 0.00 0.43 NM 1.47 3.98
EFBI Enterprise Federal Bancorp 0.02 NM 0.01 0.10 0.29 NM 0.79 7.03
EFC EFC Bancorp Inc. 0.75 60.52 0.46 6.25 0.45 57.60 0.80 8.59
EGLB Eagle BancGroup Inc. 1.35 57.16 1.27 11.03 0.77 41.32 0.34 2.85
EMLD Emerald Financial Corp. 0.33 111.83 0.33 4.03 0.37 73.95 1.09 13.92
EQSB Equitable Federal Savings Bank NA NA 0.32 6.13 NA NA 0.72 14.03
ESBF ESB Financial Corp. 1.10 125.21 0.44 6.08 1.37 116.49 0.69 8.69
ESBK Elmira Savings Bank (The) 0.63 134.69 0.68 10.92 0.85 97.63 0.44 7.04
ESX Essex Bancorp Inc. 1.02 131.19 1.69 21.85 1.33 71.25 (0.11) (1.44)
ETFS East Texas Financial Services 0.53 72.39 0.41 2.35 0.38 47.58 0.60 3.35
FAB FIRSTFED AMERICA BANCORP INC. 0.36 324.35 0.31 3.12 1.16 275.70 0.60 5.47
FBBC First Bell Bancorp Inc. 0.07 190.41 0.07 0.63 0.13 156.05 1.08 10.44
FBCI Fidelity Bancorp Inc. 0.18 65.64 0.29 2.65 0.12 33.82 0.21 2.01
FBCV 1ST Bancorp 1.63 37.96 1.53 17.00 0.62 26.55 0.75 8.79
FBER 1st Bergen Bancorp 2.19 108.32 0.95 8.15 2.38 104.08 0.75 5.41
FBHC Fort Bend Holding Corp. 0.84 120.69 0.47 6.88 1.02 114.18 0.67 10.68
FBNW FirstBank Corp. 0.31 246.70 0.73 4.46 0.76 83.64 1.02 6.98
FBSI First Bancshares Inc. 0.04 912.28 0.03 0.24 0.36 33.59 1.12 8.11
FCB Falmouth Bancorp Inc. 0.07 NM 0.05 0.21 0.74 NM 1.04 4.31
FCBF FCB Financial Corp. 0.29 305.09 0.26 1.82 0.89 269.82 1.12 7.50
FCBH Virginia Beach Fed. Financial 0.02 NM 0.53 7.36 0.93 51.28 NA NA
FCBK First Coastal Bankshares 0.02 NM 0.53 7.36 0.93 51.28 0.69 9.92
FCME First Coastal Corp. 0.48 513.52 0.43 4.28 2.48 358.51 0.86 8.80
FDEF First Defiance Financial 0.28 221.69 0.31 1.74 0.62 158.28 0.94 4.77
FED FirstFed Financial Corp. 0.93 287.87 0.89 15.62 2.68 236.92 0.63 12.26
FESX First Essex Bancorp Inc. 0.76 195.05 0.54 7.63 1.49 152.35 0.84 11.55
FFBA First Colorado Bancorp Inc. 0.22 188.75 0.18 1.29 0.41 176.16 1.30 9.85
FFBH First Federal Bancshares of AR 0.32 74.51 0.85 5.77 0.24 21.71 0.99 6.60
FFBI First Financial Bancorp Inc. 1.50 64.36 1.00 10.81 0.97 64.36 0.14 1.65
FFBS FFBS BanCorp Inc. 0.04 NM 0.03 0.17 0.59 72.88 1.41 7.42
FFBZ First Federal Bancorp Inc. 0.54 220.08 0.46 6.05 1.18 219.63 0.90 11.81
FFCH First Financial Holdings Inc. 0.71 113.23 1.25 19.71 0.80 51.68 0.89 14.17
FFDB FirstFed Bancorp Inc. 0.92 103.21 0.99 10.19 0.95 45.57 0.96 9.89
FFDF FFD Financial Corp. 0.12 329.27 0.08 0.37 0.40 329.27 1.75 7.27
FFED Fidelity Federal Bancorp 0.39 713.78 0.33 4.83 2.77 613.16 (0.34) (5.30)
FFES First Federal of East Hartford 1.18 111.50 0.25 3.57 1.32 85.02 0.58 8.71
FFFD North Central Bancshares Inc. 0.08 NM 0.16 1.05 1.02 472.78 1.70 8.33
FFFL Fidelity Bankshares Inc. (MHC) 0.38 94.99 0.32 4.83 0.36 75.42 0.67 8.49
FFHH FSF Financial Corp. 0.24 141.63 0.18 1.70 0.34 131.50 0.83 7.45
FFHS First Franklin Corp. 0.36 185.82 0.24 2.63 0.68 92.09 0.82 9.01
FFIC Flushing Financial Corp. NA NA NA NA 1.04 199.94 0.92 6.59
FFKY First Federal Financial Corp. - NM 0.05 0.38 0.52 94.14 1.63 11.99
FFLC FFLC Bancorp Inc. 0.24 228.96 0.31 2.40 0.56 147.07 0.97 7.25
FFOH Fidelity Financial of Ohio 0.19 209.14 0.18 1.47 0.39 174.24 0.92 7.27
</TABLE>
<PAGE>
Page 11 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 6.53 6.40 2.16 7.55 6.89 16.72
FFSL First Independence Corp. 9.28 9.28 0.00 7.93 9.81 18.17
FFSX First Fed SB of Siouxland(MHC) 7.21 5.79 20.85 5.80 7.65 12.09
FFWC FFW Corp. 9.58 8.86 8.25 6.81 9.96 12.01
FFWD Wood Bancorp Inc. 13.20 13.20 0.00 9.93 13.59 15.62
FFYF FFY Financial Corp. 13.10 13.10 0.00 9.00 13.53 16.23
FGHC First Georgia Holding Inc. 8.10 7.58 6.85 8.04 8.73 10.02
FIBC Financial Bancorp Inc. 9.04 9.00 0.42 6.83 9.56 17.60
FISB First Indiana Corp. 9.26 9.17 1.11 8.01 10.69 11.72
FKFS First Keystone Financial 6.67 6.67 0.00 8.50 7.13 20.75
FKKY Frankfort First Bancorp Inc. 16.96 16.96 0.00 17.54 17.03 33.95
FLAG FLAG Financial Corp. 8.62 8.62 0.00 7.91 9.52 12.69
FLFC First Liberty Financial Corp. 7.35 6.77 8.57 6.71 8.30 10.51
FLGS Flagstar Bancorp Inc. 5.21 5.05 3.14 7.05 5.48 13.47
FLKY First Lancaster Bancshares 26.65 26.65 0.00 26.26 26.97 36.82
FMBD First Mutual Bancorp Inc. 14.15 11.32 22.57 19.39 14.52 20.05
FMCO FMS Financial Corp. 5.95 5.89 0.99 6.72 6.43 15.56
FMSB First Mutual Savings Bank 6.88 6.88 0.00 7.04 7.93 11.29
FNGB First Northern Capital Corp. 11.10 11.10 0.00 9.70 11.58 15.97
FOBC Fed One Bancorp 11.24 10.84 3.99 10.03 11.65 25.06
FPRY First Financial Bancorp 6.35 6.35 0.00 6.20 7.00 10.80
FSBI Fidelity Bancorp Inc. 6.84 6.84 0.00 9.02 7.36 18.46
FSFF First SecurityFed Financial 28.92 28.86 0.29 20.50 29.51 44.06
FSLA First Source Bancorp Inc. 8.92 8.25 8.24 8.18 9.47 21.20
FSNJ Bayonne Bancshares Inc. 15.75 15.75 0.00 12.17 16.24 34.91
FSPG First Home Bancorp Inc. 6.99 6.91 1.28 6.69 7.66 17.18
FSPT FirstSpartan Financial Corp. 26.29 26.29 0.00 19.06 26.70 30.94
FSSB First FS&LA of San Bernardino 4.33 4.18 3.63 4.29 5.38 8.52
FSTC First Citizens Corp. 10.09 8.24 20.03 8.20 11.20 12.56
FTF Texarkana First Financial Corp 15.22 15.22 0.00 15.19 15.83 26.17
FTFC First Federal Capital Corp. 7.17 6.83 5.12 6.34 7.65 12.48
FTNB Fulton Bancorp Inc. 23.37 23.37 0.00 16.60 24.25 29.90
FTSB Fort Thomas Financial Corp. 15.77 15.77 0.00 15.06 16.21 24.13
FWWB First SB of Washington Bancorp 13.38 12.51 7.39 12.63 14.03 23.03
GAF GA Financial Inc. 14.01 13.90 0.92 12.24 14.18 32.54
GBNK Gaston Federal Bancorp (MHC) 7.53 7.53 0.00 NA 7.96 NA
GDW Golden West Financial 7.10 7.10 0.00 6.76 7.69 13.66
GFCO Glenway Financial Corp. 9.57 9.49 0.91 8.70 9.92 13.40
GFED Guaranty Federal Bcshs Inc. 28.34 28.34 0.00 27.69 29.23 46.79
GLMR Gilmer Financial Svcs, Inc. 9.02 9.02 0.00 8.80 9.75 19.20
GOSB GSB Financial Corp. 28.15 28.15 0.00 19.68 28.29 39.70
GPT GreenPoint Financial Corp. 9.67 5.64 44.21 7.32 10.50 16.03
GSB Golden State Bancorp Inc. 7.00 6.46 8.30 6.24 7.92 12.27
GSBC Great Southern Bancorp Inc. 8.20 8.14 0.76 6.97 10.16 10.57
GSFC Green Street Financial Corp. 35.79 35.79 0.00 35.79 35.93 79.99
GSLA GS Financial Corp. 41.62 41.62 0.00 34.17 41.95 79.59
GTPS Great American Bancorp 18.33 18.33 0.00 NA 18.70 NA
GUPB GFSB Bancorp Inc. 12.33 12.33 0.00 NA 12.65 NA
HALL Hallmark Capital Corp. 7.68 7.68 0.00 7.05 8.21 12.51
HARB Harbor Florida Bancshares Inc. 19.82 19.64 1.15 13.68 20.76 27.89
HARL Harleysville Savings Bank 6.67 6.67 0.00 6.67 7.21 14.48
HARS Harris Financial Inc. (MHC) 8.13 7.36 10.23 6.90 8.53 13.10
HAVN Haven Bancorp Inc. 5.65 5.64 0.26 6.41 6.29 14.01
HBBI Home Building Bancorp 14.06 14.06 0.00 10.77 14.26 21.56
HBEI Home Bancorp of Elgin Inc. 25.93 25.93 0.00 20.15 26.22 36.77
HBFW Home Bancorp 12.03 12.03 0.00 9.72 12.43 20.11
HBNK Highland Bancorp Inc. 7.84 7.84 0.00 7.13 9.48 11.04
HBS Haywood Bancshares Inc. 14.85 14.45 3.16 14.22 15.34 28.67
HBSC Heritage Bancorp Inc. 9.42 9.42 0.00 8.87 9.65 20.86
HCBB HCB Bancshares Inc. 18.65 18.12 3.49 13.80 19.38 29.80
HCBC High Country Bancorp Inc. 19.56 19.56 0.00 14.00 20.32 23.33
HCFC Home City Financial Corp. 18.58 18.58 0.00 13.88 19.18 22.87
HEMT HF Bancorp Inc. 7.86 6.75 15.17 6.16 8.42 16.08
HFBC HopFed Bancorp Inc. 25.98 25.98 0.00 15.60 26.09 44.30
</TABLE>
<PAGE>
Page 11 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
----------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- ------------------------------------------------------ --------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 0.70 87.12 0.55 8.42 0.61 62.53 0.53 8.16
FFSL First Independence Corp. 0.72 105.47 0.51 5.51 0.76 102.98 0.66 6.56
FFSX First Fed SB of Siouxland(MHC) 0.43 143.68 0.34 4.65 0.61 122.22 0.71 8.23
FFWC FFW Corp. 0.32 175.58 0.33 3.49 0.57 113.70 1.00 10.41
FFWD Wood Bancorp Inc. - NM 0.02 0.14 0.46 110.31 1.43 11.30
FFYF FFY Financial Corp. 0.68 88.16 0.53 4.06 0.60 81.15 1.28 9.40
FGHC First Georgia Holding Inc. 1.72 42.12 1.64 20.25 0.72 38.60 1.12 13.57
FIBC Financial Bancorp Inc. 1.56 59.59 2.19 24.27 0.93 23.74 0.95 10.27
FISB First Indiana Corp. 1.37 123.81 1.38 14.91 1.70 103.15 1.17 12.10
FKFS First Keystone Financial 1.54 57.73 1.34 20.06 0.89 34.27 0.78 11.30
FKKY Frankfort First Bancorp Inc. - NM 0.00 0.00 0.08 63.29 0.25 1.30
FLAG FLAG Financial Corp. 1.17 110.87 0.95 11.00 1.30 91.47 0.91 10.18
FLFC First Liberty Financial Corp. 0.79 175.37 0.82 11.18 1.38 114.75 0.78 10.36
FLGS Flagstar Bancorp Inc. 1.88 16.41 2.32 44.50 0.31 11.78 1.31 21.11
FLKY First Lancaster Bancshares 1.28 27.91 1.7 6.37 0.36 18.91 1.04 3.46
FMBD First Mutual Bancorp Inc. 0.20 241.43 0.24 1.67 0.47 85.81 0.32 2.38
FMCO FMS Financial Corp. 1.17 90.47 0.70 11.77 1.05 68.15 0.91 14.32
FMSB First Mutual Savings Bank - NM 0.04 0.58 1.23 714.97 1.05 15.46
FNGB First Northern Capital Corp. 0.10 549.24 0.12 1.07 0.54 405.46 0.96 8.61
FOBC Fed One Bancorp 0.27 335.25 0.13 1.14 0.90 141.57 0.86 7.78
FPRY First Financial Bancorp NA NA NA NA 0.84 NA 0.57 8.95
FSBI Fidelity Bancorp Inc. 0.15 704.67 0.08 1.17 1.05 658.57 0.74 10.89
FSFF First SecurityFed Financial - NM 0.00 0.01 0.96 158.47 NA NA
FSLA First Source Bancorp Inc. 0.51 204.99 0.44 4.92 1.04 115.69 0.96 10.14
FSNJ Bayonne Bancshares Inc. 2.09 60.45 0.90 5.71 1.27 48.09 0.45 4.04
FSPG First Home Bancorp Inc. 1.41 92.12 0.77 10.98 1.30 82.62 0.88 12.99
FSPT FirstSpartan Financial Corp. 0.38 129.35 0.32 1.22 0.49 115.67 1.34 6.31
FSSB First FS&LA of San Bernardino 1.43 102.26 2.31 53.29 1.47 45.41 (1.18) (24.70)
FSTC First Citizens Corp. 1.45 100.93 1.12 11.11 1.46 99.21 1.88 19.41
FTF Texarkana First Financial Corp - NM 0.08 0.52 0.76 267.38 1.75 11.36
FTFC First Federal Capital Corp. 0.19 319.35 0.21 2.93 0.61 229.95 1.18 17.51
FTNB Fulton Bancorp Inc. 0.62 169.72 0.70 2.99 1.06 126.01 1.23 5.03
FTSB Fort Thomas Financial Corp. 2.45 19.86 2.22 14.05 0.49 19.86 1.23 7.72
FWWB First SB of Washington Bancorp 0.11 914.11 0.19 1.42 0.97 263.53 1.21 8.47
GAF GA Financial Inc. 0.52 81.02 0.21 1.53 0.42 81.02 1.09 7.36
GBNK Gaston Federal Bancorp (MHC) 0.50 181.70 0.32 4.29 0.92 134.01 NA NA
GDW Golden West Financial 1.09 66.25 1.02 14.41 0.72 58.45 0.95 14.38
GFCO Glenway Financial Corp. 0.20 200.19 0.19 1.98 0.41 184.71 0.86 9.12
GFED Guaranty Federal Bcshs Inc. 0.63 180.56 0.59 2.07 1.14 152.53 1.14 7.04
GLMR Gilmer Financial Svcs, Inc. 2.51 51.93 1.65 18.25 1.3 44.52 0.06 0.59
GOSB GSB Financial Corp. 0.16 147.83 0.1 0.34 0.24 147.83 0.71 3.47
GPT GreenPoint Financial Corp. 3.78 32.23 2.73 28.27 1.22 30.41 1.08 10.90
GSB Golden State Bancorp Inc. 1.03 119.1 0.99 14.15 1.22 92.79 0.71 10.78
GSBC Great Southern Bancorp Inc. 1.11 216.32 1.51 18.47 2.39 129.74 1.90 22.18
GSFC Green Street Financial Corp. 0.21 94.10 0.18 0.51 0.19 78.95 1.60 4.48
GSLA GS Financial Corp. - NM 0.00 0.00 0.77 264.81 1.47 3.37
GTPS Great American Bancorp NA NA NA NA 0.48 346.45 0.66 3.24
GUPB GFSB Bancorp Inc. 0.61 88.29 0.37 2.98 0.54 86.67 0.90 6.67
HALL Hallmark Capital Corp. 0.37 210.74 0.25 3.29 0.78 197.24 0.67 9.08
HARB Harbor Florida Bancshares Inc. 0.36 369.33 0.47 2.36 1.33 198.97 1.26 13.92
HARL Harleysville Savings Bank - NM 0.00 0.02 0.79 NM 1.01 15.28
HARS Harris Financial Inc. (MHC) 0.87 112.94 0.66 8.09 0.99 60.87 0.89 11.02
HAVN Haven Bancorp Inc. 0.91 119.05 0.57 10.06 1.08 112.56 0.53 9.04
HBBI Home Building Bancorp 0.99 29.02 0.67 4.79 0.29 29.02 0.75 5.70
HBEI Home Bancorp of Elgin Inc. 0.30 121.49 0.32 1.23 0.36 93.09 0.69 2.58
HBFW Home Bancorp - NM 0.00 0.00 0.45 463.00 0.86 6.74
HBNK Highland Bancorp Inc. 2.07 99.89 1.95 24.90 2.06 84.08 1.29 17.12
HBS Haywood Bancshares Inc. 0.49 133.33 0.37 2.50 0.65 131.68 1.45 10.19
HBSC Heritage Bancorp Inc. NA NA NA NA 0.38 NA NA NA
HCBB HCB Bancshares Inc. 0.44 323.01 0.23 1.24 1.42 316.88 0.30 1.92
HCBC High Country Bancorp Inc. 0.56 167.06 0.45 2.32 0.94 167.06 0.38 3.22
HCFC Home City Financial Corp. 0.73 90.76 0.65 3.51 0.66 90.76 NA NA
HEMT HF Bancorp Inc. 1.32 76.16 0.95 12.06 1 59.24 (0.05) (0.57)
HFBC HopFed Bancorp Inc. - NM 0.02 0.07 0.23 70.97 1.09 9.26
</TABLE>
<PAGE>
Page 12 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp 26.46 26.46 0.00 22.90 26.81 43.20
HFFC HF Financial Corp. 9.72 9.72 0.00 7.63 10.69 12.82
HFGI Harrington Financial Group 4.42 4.42 0.00 6.15 4.46 23.75
HFNC HFNC Financial Corp. 17.24 17.24 0.00 15.42 17.97 29.36
HFSA Hardin Bancorp Inc. 11.13 11.13 0.00 10.22 11.33 26.89
HFWA Heritage Financial Corp. 28.80 28.80 0.00 27.74 29.68 46.91
HHFC Harvest Home Financial Corp. 11.34 11.34 0.00 NA 11.48 NA
HIFS Hingham Instit. for Savings 9.47 9.47 0.00 9.72 10.17 15.54
HLFC Home Loan Financial Corp. 38.95 38.95 0.00 25.20 39.20 49.20
HMLK Hemlock Federal Financial Corp 16.19 16.19 0.00 NA 16.6 NA
HMNF HMN Financial Inc. 11.60 10.88 7.01 6.54 11.99 14.85
HOMF Home Federal Bancorp 9.20 8.97 2.66 8.28 9.76 11.98
HPBC Home Port Bancorp Inc. 9.78 9.78 0.00 9.77 11.04 17.05
HRBF Harbor Federal Bancorp Inc. 12.69 12.69 0.00 9.69 12.90 22.07
HRZB Horizon Financial Corp. 15.33 15.33 0.00 15.33 15.99 28.46
HTHR Hawthorne Financial Corp. 4.25 4.25 0.00 7.45 5.60 11.45
HWEN Home Financial Bancorp 18.00 18.00 0.00 15.30 18.70 26.30
HZFS Horizon Financial Svcs Corp. 9.11 9.11 0.00 7.13 9.53 13.25
IBSF IBS Financial Corp. 17.35 17.35 0.00 17.23 17.5 59.91
ICBC Independence Comm. Bank Corp. 8.67 7.28 17.35 7.30 9.55 11.90
IFSB Independence Federal Svgs Bank 7.21 6.57 9.54 6.30 7.45 16.50
INBI Industrial Bancorp Inc. 16.48 16.48 0.00 10.06 16.95 19.27
IPSW Ipswich Savings Bank 5.28 5.28 0.00 5.39 6.00 10.60
ITLA ITLA Capital Corp. 10.18 10.15 0.30 10.07 11.53 12.84
IWBK InterWest Bancorp Inc. 6.76 6.66 1.54 6.91 7.20 14.47
JOAC Joachim Bancorp Inc. 28.91 28.91 0.00 24.20 29.13 48.40
JSB JSB Financial Inc. 23.81 23.81 0.00 NA 24.19 NA
JSBA Jefferson Savings Bancorp 9.56 7.82 19.79 7.91 10.21 14.95
JXSB Jacksonville Savings Bk (MHC) 10.38 10.38 0.00 10.60 10.84 15.40
JXVL Jacksonville Bancorp Inc. 14.73 14.73 0.00 14.04 15.22 26.89
KFBI Klamath First Bancorp 15.01 13.95 8.21 11.05 15.16 22.86
KNK Kankakee Bancorp Inc. 9.65 8.16 16.80 6.79 10.27 13.27
KSAV KS Bancorp Inc. 12.81 12.81 0.02 NA 13.10 12.03
KSBK KSB Bancorp Inc. 7.78 6.84 13.05 7.25 8.66 10.95
KYF Kentucky First Bancorp Inc. 17.03 17.03 0.00 14.40 17.50 26.10
LARK Landmark Bancshares Inc. 14.11 14.11 0.00 11.25 14.58 22.71
LARL Laurel Capital Group Inc. 10.63 10.63 0.00 10.36 11.48 21.71
LFBI Little Falls Bancorp Inc. 10.20 9.50 7.63 7.67 10.54 16.77
LFCO Life Financial Corp. 15.12 15.12 0.00 7.67 16.19 12.20
LFED Leeds Federal Bankshares (MHC) 16.49 16.49 0.00 16.00 16.67 32.54
LISB Long Island Bancorp Inc. 8.95 8.88 0.86 7.37 9.49 15.59
LO Local Financial Corp. 3.91 3.82 2.34 8.27 4.34 18.01
LOGN Logansport Financial Corp. 18.86 18.86 0.00 18.76 19.13 35.04
LONF London Financial Corp. 13.76 13.76 0.00 16.00 14.24 31.48
LSBI LSB Financial Corp. 8.41 8.41 0.00 7.82 9.11 11.85
LSBX Lawrence Savings Bank 11.14 11.14 0.00 9.93 12.00 18.32
LVSB Lakeview Financial Corp. 9.65 8.06 17.96 7.90 10.38 14.00
LXMO Lexington B&L Financial Corp. 18.01 17.09 6.16 21.90 18.65 41.80
MAFB MAF Bancorp Inc. 7.74 6.93 11.30 6.86 8.19 14.01
MARN Marion Capital Holdings 20.55 20.21 2.10 18.50 21.61 28.60
MASB MASSBANK Corp. 11.52 11.38 1.37 10.39 11.77 35.67
MBBC Monterey Bay Bancorp Inc. 11.68 11.01 6.48 9.63 12.13 17.17
MBLF MBLA Financial Corp. 13.50 13.50 0.00 12.71 13.82 32.18
MBSP Mitchell Bancorp Inc. 39.31 39.31 0.00 32.30 39.84 59.90
MCBN Mid-Coast Bancorp Inc. 8.48 8.48 0.00 8.15 9.03 14.83
MDBK Medford Bancorp Inc. 9.24 8.77 5.49 8.65 9.84 15.83
MECH MECH Financial Inc. 9.59 9.59 0.00 9.57 11.03 16.96
METF Metropolitan Financial Corp. 3.86 3.58 7.64 5.40 4.46 8.35
MFBC MFB Corp. 11.77 11.77 0.00 10.61 11.91 21.18
MFFC Milton Federal Financial Corp. 11.35 11.35 0.00 9.91 11.59 20.96
MFLR Mayflower Co-operative Bank 9.75 9.62 1.52 9.75 10.62 15.55
MFSL Maryland Federal Bancorp 8.76 8.69 0.95 8.24 9.16 16.53
MIFC Mid-Iowa Financial Corp. 8.85 8.84 0.09 7.20 9.05 18.41
MIVI Mississippi View Holding Co. 18.18 18.18 0.00 16.36 19.44 33.09
</TABLE>
<PAGE>
Page 12 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
--------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- --------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp - NM 0 0.00 0.45 79.96 1.36 5.07
HFFC HF Financial Corp. 0.46 275.02 0.44 4.55 1.26 196.91 1.08 11.44
HFGI Harrington Financial Group 0.22 70.53 0.16 3.71 0.16 23.48 (0.02) (0.35)
HFNC HFNC Financial Corp. 0.58 153.22 0.73 4.26 0.89 98.43 1.35 7.37
HFSA Hardin Bancorp Inc. 0.37 110.22 0.19 1.67 0.40 110.22 0.83 6.52
HFWA Heritage Financial Corp. 0.13 966.67 0.12 0.40 1.28 761.93 NA NA
HHFC Harvest Home Financial Corp. 0.47 56.81 0.23 2.07 0.27 56.81 0.62 5.39
HIFS Hingham Instit. for Savings 0.54 166.84 0.42 4.38 0.89 166.84 1.26 13.04
HLFC Home Loan Financial Corp. - NM 0.00 0.00 0.36 56.90 1.31 6.28
HMLK Hemlock Federal Financial Corp 0.54 175.34 0.23 1.43 0.94 175.34 1.00 5.55
HMNF HMN Financial Inc. 0.09 711.59 0.07 0.57 0.61 327.35 0.95 6.94
HOMF Home Federal Bancorp 0.61 111.01 0.53 5.73 0.68 107.55 1.44 16.58
HPBC Home Port Bancorp Inc. - NM 0 0 1.49 430.57 1.47 14.05
HRBF Harbor Federal Bancorp Inc. 0.66 50.26 0.42 3.33 0.33 50.26 0.75 5.86
HRZB Horizon Financial Corp. 0.01 NM 0.01 0.06 0.83 NM 1.55 10.13
HTHR Hawthorne Financial Corp. 5.88 24.85 6.04 142.05 1.46 22.28 1.11 21.01
HWEN Home Financial Bancorp 1.06 81.67 1.32 7.36 0.86 53.55 0.93 5.32
HZFS Horizon Financial Svcs Corp. 1.49 46.06 0.92 10.11 0.69 45.20 0.91 9.15
IBSF IBS Financial Corp. 0.30 156.87 0.09 0.53 0.47 156.87 0.82 4.67
ICBC Independence Comm. Bank Corp. 0.40 307.47 0.29 3.38 1.24 126.32 NA NA
IFSB Independence Federal Svgs Bank NA NA NA NA 0.40 16.50 0.78 11.10
INBI Industrial Bancorp Inc. 0.19 288.47 0.17 1.01 0.54 188.24 1.48 8.63
IPSW Ipswich Savings Bank 0.53 167.68 0.79 15.01 0.89 90.70 1.24 22.54
ITLA ITLA Capital Corp. 1.08 151.47 1.31 12.91 1.63 102.95 1.45 13.54
IWBK InterWest Bancorp Inc. 0.55 137.69 0.66 9.82 0.76 66.76 1.03 15.51
JOAC Joachim Bancorp Inc. 0.29 102.74 0.21 0.74 0.30 89.29 0.75 2.62
JSB JSB Financial Inc. NA NA NA NA 0.56 NA 2.49 10.72
JSBA Jefferson Savings Bancorp 0.22 408.14 0.66 6.94 0.88 96.80 0.78 8.67
JXSB Jacksonville Savings Bk (MHC) 0.86 70.52 0.84 8.14 0.61 54.02 0.58 5.61
JXVL Jacksonville Bancorp Inc. 0.62 103.02 0.75 5.07 0.64 65.39 1.45 9.83
KFBI Klamath First Bancorp 0.03 765.13 0.02 0.13 0.25 765.13 0.95 5.84
KNK Kankakee Bancorp Inc. 0.52 186.95 0.70 7.22 0.98 55.72 0.86 8.00
KSAV KS Bancorp Inc. 0.53 64.74 0.44 3.44 0.34 64.74 1.09 8.37
KSBK KSB Bancorp Inc. 1.54 71.53 1.44 18.51 1.10 NA 1.10 14.90
KYF Kentucky First Bancorp Inc. 0.06 NM 0.04 0.23 0.76 263.19 1.13 6.74
LARK Landmark Bancshares Inc. 0.11 592.78 0.09 0.61 0.63 217.31 1.09 7.74
LARL Laurel Capital Group Inc. 0.37 333.58 0.37 3.52 1.24 226.91 1.43 13.78
LFBI Little Falls Bancorp Inc. 0.64 126.6 0.43 4.25 0.81 78.51 0.58 4.85
LFCO Life Financial Corp. 3.31 53.14 2.43 16.09 1.76 43.86 4.57 33.62
LFED Leeds Federal Bankshares (MHC) 0.05 560.82 0.03 0.20 0.29 560.82 1.19 7.22
LISB Long Island Bancorp Inc. 1.26 71.90 0.86 9.63 0.91 62.70 0.88 9.63
LO Local Financial Corp. 0.34 325.97 0.46 11.84 1.12 90.97 (0.98) (28.77)
LOGN Logansport Financial Corp. 0.55 66.12 0.57 3.04 0.37 46.97 1.49 7.79
LONF London Financial Corp. 0.26 238.16 0.20 1.46 0.62 238.16 1.08 5.62
LSBI LSB Financial Corp. 1.97 41.16 1.69 20.07 0.81 41.16 0.81 9.46
LSBX Lawrence Savings Bank 0.45 395.62 0.40 3.56 1.79 218.48 2.46 25.76
LVSB Lakeview Financial Corp. 1.74 81.82 1.27 13.11 1.42 57.56 1.43 13.46
LXMO Lexington B&L Financial Corp. 0.53 179.04 0.44 2.44 0.95 135.29 0.97 4.21
MAFB MAF Bancorp Inc. 0.35 158.69 0.48 6.15 0.56 80.77 1.12 14.40
MARN Marion Capital Holdings 1.07 117.75 1 4.85 1.26 106.41 1.33 6.14
MASB MASSBANK Corp. 0.56 152.27 0.17 1.46 0.86 152.27 1.15 10.55
MBBC Monterey Bay Bancorp Inc. 0.44 153.01 0.35 2.96 0.67 131.09 0.42 3.76
MBLF MBLA Financial Corp. 0.85 59.37 0.55 4.06 0.50 59.37 0.87 6.79
MBSP Mitchell Bancorp Inc. 0.81 84.35 1.56 3.96 0.68 33.74 1.43 3.50
MCBN Mid-Coast Bancorp Inc. 0.44 154.22 0.47 5.52 0.68 95.07 0.78 9.04
MDBK Medford Bancorp Inc. 0.24 498.97 0.13 1.36 1.17 481.96 1.07 11.95
MECH MECH Financial Inc. 0.69 329.02 0.56 5.82 2.28 258.21 1.56 15.50
METF Metropolitan Financial Corp. 0.94 83.48 0.88 22.72 0.78 64.73 0.75 18.99
MFBC MFB Corp. - NM 0.00 0.00 0.18 645.16 0.85 6.50
MFFC Milton Federal Financial Corp. 0.13 270.50 0.09 0.78 0.36 85.06 0.68 5.42
MFLR Mayflower Co-operative Bank 1.12 132.79 0.65 6.68 1.49 124.95 1.11 11.51
MFSL Maryland Federal Bancorp 0.58 82.25 0.6 6.79 0.48 60.9 0.75 8.74
MIFC Mid-Iowa Financial Corp. 0.02 NM 0.07 0.80 0.41 275.00 1.17 12.62
MIVI Mississippi View Holding Co. 0.65 290.24 0.43 2.38 1.90 225.65 1.08 6.37
</TABLE>
<PAGE>
Page 13 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 18.26 18.26 0.00 14.10 18.42 21.20
MRKF Market Financial Corp. 35.27 35.27 0.00 23.61 35.36 61.57
MSBF MSB Financial Inc. 16.70 16.70 0.00 12.74 17.14 21.53
MSBK Mutual Savings Bank FSB 5.07 5.07 0.00 5.14 5.38 12.41
MWBI Midwest Bancshares Inc. 6.89 6.89 0.00 6.18 7.18 14.56
MWBX MetroWest Bank 7.21 7.21 0.00 7.48 8.67 11.17
MYST Mystic Financial Inc. 19.06 19.06 0.00 18.84 19.70 NA
NASB NASB Financial Inc. 8.49 8.26 2.92 8.40 9.35 14.00
NBCP Niagara Bancorp Inc. (MHC) 10.14 10.14 0.00 10.90 10.68 21.06
NBN Northeast Bancorp 7.64 7.05 8.41 7.06 8.62 11.35
NBSI North Bancshares Inc. 11.45 11.45 0.00 10.04 11.63 26.58
NEIB Northeast Indiana Bancorp 13.34 13.34 0.00 12.16 13.98 19.73
NEP Northeast PA Financial Corp. 18.94 18.94 0.00 12.60 19.33 24.60
NHTB New Hampshire Thrift Bncshrs 8.09 7.11 13.10 6.72 9.05 12.54
NMSB NewMil Bancorp Inc. 8.91 8.91 0.00 9.45 10.26 20.73
NSLB NS&L Bancorp Inc. 18.79 18.68 0.71 15.07 18.87 34.45
NSSY NSS Bancorp Inc. 8.12 7.92 2.66 7.75 8.95 15.8
NTBK Net.B@nk Inc. 20.86 20.86 0.00 14.87 21.14 22.05
NTMG Nutmeg Federal S&LA 8.07 8.07 0.00 8.07 8.54 13.34
NWEQ Northwest Equity Corp. 11.61 11.61 0.00 8.86 12.08 13.93
NWSB Northwest Bancorp Inc. (MHC) 8.85 7.98 10.65 7.78 9.47 15.83
OCFC Ocean Financial Corp. 14.22 14.22 0.00 12.30 14.67 29.50
OCN Ocwen Financial Corp. 13.07 12.48 5.23 10.24 13.76 17.90
OFCP Ottawa Financial Corp. 8.45 7.03 18.03 6.68 8.83 10.79
OHSL OHSL Financial Corp. 10.54 10.54 0.00 8.57 10.76 16.57
OSFS Ohio State Financial Services 27.08 27.08 0.00 27.08 27.45 46.45
OTFC Oregon Trail Financial Corp. 25.85 25.85 0.00 18.06 26.17 35.78
PBCI Pamrapo Bancorp Inc. 12.82 12.76 0.56 11.85 13.46 25.28
PBCT People's Bank (MHC) 9.23 8.02 14.31 8.50 10.33 12.10
PBHC Pathfinder Bancorp Inc. (MHC) 11.76 10.15 15.28 8.18 12.21 14.03
PBKB People's Bancshares Inc. 3.67 3.55 3.44 5.15 4.17 10.90
PBOC PBOC Holdings Inc. 3.60 3.60 0.00 5.43 4.40 11.99
PCBC Perry County Financial Corp. 18.94 18.94 0.00 15.60 18.97 67.10
PDB Piedmont Bancorp Inc. 16.10 16.10 0.00 14.93 16.79 27.40
PEDE Great Pee Dee Bancorp 45.12 45.12 0.00 NA 45.60 NA
PEEK Peekskill Financial Corp. 22.98 22.98 0.00 22.60 23.32 89.70
PERM Permanent Bancorp Inc. 10.00 9.89 1.17 8.95 10.50 22.05
PFDC Peoples Bancorp 15.09 15.09 0.00 12.30 15.39 25.50
PFED Park Bancorp Inc. 19.91 19.91 0.00 13.52 20.17 38.59
PFFB PFF Bancorp Inc. 9.04 8.96 1.02 7.10 9.97 14.17
PFFC Peoples Financial Corp. 19.14 19.14 0.00 17.13 19.36 35.76
PFNC Progress Financial Corp. 5.52 4.93 11.27 6.80 6.37 10.63
PFSB PennFed Financial Services Inc 7.19 6.30 13.32 7.26 7.37 15.75
PFSL Pocahontas Bancorp Inc. 14.52 14.52 0.00 10.02 14.95 23.83
PHBK Peoples Heritage Finl Group 6.71 5.19 23.92 6.54 7.62 11.78
PHFC Pittsburgh Home Financial Corp 7.43 7.35 1.14 19.17 7.90 18.21
PHSB Peoples Home Savings Bk (MHC) 12.77 12.77 0.00 12.50 13.36 28.60
PLSK Pulaski Savings Bank (MHC) 11.54 11.54 0.00 11.54 12.04 27.45
PRBC Prestige Bancorp Inc. 9.83 9.83 0.00 7.99 10.09 17.11
PROV Provident Financial Holdings 11.09 11.09 0.00 8.44 11.92 14.59
PSBK Progressive Bank Inc. 8.90 8.18 8.75 8.08 9.98 16.18
PSFC Peoples-Sidney Financial Corp. 25.16 25.16 0.00 17.10 25.55 27.40
PSFI PS Financial Inc. 27.82 27.82 0.00 24.80 28.03 61.41
PTRS Potters Financial Corp. 8.71 8.71 0.00 7.88 10.44 17.62
PULB Pulaski Bank, Svgs Bank (MHC) 13.42 13.42 0.00 13.39 13.78 26.30
PULS Pulse Bancorp 8.34 8.34 0.00 7.67 8.71 26.65
PVFC PVF Capital Corp. 7.20 7.20 0.00 7.21 7.86 10.68
PVSA Parkvale Financial Corp. 7.82 7.78 0.48 7.19 9.17 14.43
PWBK Pennwood Bancorp Inc. 18.34 18.34 0.00 19.07 19.05 35.77
QCBC Quaker City Bancorp Inc. 8.76 8.76 0.00 7.45 9.68 13.21
QCFB QCF Bancorp Inc. 17.70 17.70 0.00 NA 18.52 NA
QCSB Queens County Bancorp Inc. 10.45 10.45 0.00 9.68 11.03 15.94
RARB Raritan Bancorp Inc. 7.54 7.45 1.27 7.45 8.35 13.37
RCBK Richmond County Financial Corp 22.04 21.98 0.40 13.96 22.50 NA
</TABLE>
<PAGE>
Page 13 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
------------------------------------------------------ -----------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- ------------------------------------------------------ -----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 1.13 16.43 NA NA 0.19 NA 0.81 4.54
MRKF Market Financial Corp. - NM 0.00 0.00 0.17 27.08 1.12 3.18
MSBF MSB Financial Inc. 0.13 386.81 0.11 0.69 0.49 60.27 1.55 9.26
MSBK Mutual Savings Bank FSB 0.08 753.01 0.07 1.41 0.63 427.08 (1.31) (22.77)
MWBI Midwest Bancshares Inc. 0.42 119.79 0.66 9.65 0.50 43.60 0.89 12.83
MWBX MetroWest Bank 0.60 333.84 0.52 7.21 2.01 208.27 1.30 17.60
MYST Mystic Financial Inc. 0.36 254.55 0.25 1.32 0.91 254.55 NA NA
NASB NASB Financial Inc. 2.93 33.69 3.07 36.15 0.99 27.86 1.67 21.15
NBCP Niagara Bancorp Inc. (MHC) 0.46 239.06 0.25 2.43 1.10 217.16 NA NA
NBN Northeast Bancorp NA NA NA NA 1.12 NA 0.73 9.36
NBSI North Bancshares Inc. - NM 0.00 0.00 0.27 NM 0.46 3.44
NEIB Northeast Indiana Bancorp 0.19 377.08 0.18 1.34 0.72 352.92 1.19 8.32
NEP Northeast PA Financial Corp. 0.30 213.02 0.22 1.16 0.64 178.76 NA NA
NHTB New Hampshire Thrift Bncshrs 0.78 153.77 0.76 9.37 1.20 126.05 0.93 12.16
NMSB NewMil Bancorp Inc. 0.83 345.17 0.47 5.29 2.87 215.34 0.86 8.68
NSLB NS&L Bancorp Inc. 0.02 625.00 0.01 0.07 0.14 73.53 0.69 3.50
NSSY NSS Bancorp Inc. 1.17 111.3 0.78 9.59 1.31 NA 0.91 11.01
NTBK Net.B@nk Inc. - NM 0.00 0.00 0.43 NM (6.10) (18.83)
NTMG Nutmeg Federal S&LA 0.21 261.50 0.85 10.50 0.55 NA 0.89 11.08
NWEQ Northwest Equity Corp. 1.43 40.58 1.33 11.47 0.58 35.37 1.06 9.14
NWSB Northwest Bancorp Inc. (MHC) 0.72 115.86 0.69 7.81 0.83 89.55 0.96 10.14
OCFC Ocean Financial Corp. 0.75 109.53 0.48 3.40 0.82 92.94 0.95 6.28
OCN Ocwen Financial Corp. 1.09 109.13 5.68 43.42 1.19 12.11 2.85 24.46
OFCP Ottawa Financial Corp. 0.32 138.14 0.34 4.03 0.44 104.99 0.87 10.09
OHSL OHSL Financial Corp. 0.11 280.53 0.08 0.72 0.32 126.00 0.87 7.96
OSFS Ohio State Financial Services 0.68 83.93 0.44 1.61 0.57 83.93 0.98 6.13
OTFC Oregon Trail Financial Corp. 0.30 180.70 0.18 0.69 0.55 180.70 NA NA
PBCI Pamrapo Bancorp Inc. 2.32 47.68 1.70 13.27 1.11 32.66 1.32 10.23
PBCT People's Bank (MHC) 0.97 182.40 0.66 7.13 1.76 166.94 1.20 13.74
PBHC Pathfinder Bancorp Inc. (MHC) 1.33 52.21 1.33 11.28 0.70 34.08 0.91 7.73
PBKB People's Bancshares Inc. 0.70 123.63 0.42 11.43 0.86 119.36 0.78 17.24
PBOC PBOC Holdings Inc. 1.28 89.84 1.50 41.61 1.15 53.81 0.57 15.37
PCBC Perry County Financial Corp. - NM 0.00 0.00 0.16 NM 1.03 5.40
PDB Piedmont Bancorp Inc. 0.58 142.37 0.48 3.00 0.82 142.37 1.25 7.50
PEDE Great Pee Dee Bancorp 0.78 75.69 0.73 1.61 0.59 65.48 NA NA
PEEK Peekskill Financial Corp. 2.65 52.52 0.73 3.16 1.39 38.25 1.03 4.08
PERM Permanent Bancorp Inc. 1.25 77.05 0.70 7.05 0.97 70.95 0.62 6.54
PFDC Peoples Bancorp 0.22 169.00 0.19 1.23 0.36 144.43 1.50 9.87
PFED Park Bancorp Inc. 0.19 364.96 0.10 0.50 0.69 253.81 0.90 4.12
PFFB PFF Bancorp Inc. 1.60 87.57 1.33 14.66 1.4 69.73 0.60 6.07
PFFC Peoples Financial Corp. 0.01 NM 0.01 0.06 0.30 NM 1.06 4.81
PFNC Progress Financial Corp. 0.55 215.14 0.46 8.28 1.19 65.06 0.85 15.91
PFSB PennFed Financial Services Inc 0.54 49.17 0.50 6.89 0.26 36.37 0.81 11.17
PFSL Pocahontas Bancorp Inc. 0.45 213.66 0.22 1.54 0.96 168.15 0.62 8.40
PHBK Peoples Heritage Finl Group 0.97 130.61 0.78 11.67 1.26 99.98 1.25 16.83
PHFC Pittsburgh Home Financial Corp 1.97 39.89 1.37 18.41 0.79 34.44 0.78 8.06
PHSB Peoples Home Savings Bk (MHC) 0.70 188.59 0.33 2.57 1.32 164.84 0.82 6.84
PLSK Pulaski Savings Bank (MHC) 1.31 71.31 0.73 6.35 0.93 67.79 0.64 5.68
PRBC Prestige Bancorp Inc. 0.59 68.89 0.40 4.11 0.40 65.18 0.52 4.69
PROV Provident Financial Holdings 1.03 93.32 1.34 12.05 0.96 61.50 0.75 5.85
PSBK Progressive Bank Inc. 1.07 159.08 0.76 8.51 1.70 142.41 0.97 11.14
PSFC Peoples-Sidney Financial Corp. 0.81 54.15 0.72 2.86 0.44 35.55 1.23 5.26
PSFI PS Financial Inc. 3.61 11.52 1.80 6.47 0.42 8.79 1.07 3.15
PTRS Potters Financial Corp. 0.19 NM 0.13 1.45 2.65 NM 0.81 8.99
PULB Pulaski Bank, Svgs Bank (MHC) NA NA NA NA 0.45 NA 1.11 8.40
PULS Pulse Bancorp 0.05 NM 0.40 4.77 1.41 61.50 1.07 13.17
PVFC PVF Capital Corp. 0.53 140.72 0.68 9.42 0.74 95.38 1.34 18.69
PVSA Parkvale Financial Corp. 0.62 288.64 0.52 6.63 1.79 262.03 1.07 14.66
PWBK Pennwood Bancorp Inc. 1.09 99.40 0.74 4.06 1.09 44.68 0.77 4.21
QCBC Quaker City Bancorp Inc. 1.13 103.86 1.25 14.24 1.17 74.34 0.76 8.72
QCFB QCF Bancorp Inc. 0.57 336.44 0.35 1.95 1.92 67.47 1.68 9.66
QCSB Queens County Bancorp Inc. 0.38 177.78 0.44 4.19 0.67 106.38 1.49 13.47
RARB Raritan Bancorp Inc. 0.50 240.77 0.34 4.57 1.20 234.10 1.00 12.96
RCBK Richmond County Financial Corp 1.10 106.63 0.47 2.14 1.17 96.51 NA NA
</TABLE>
<PAGE>
Page 14 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Capital/
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. 8.58 8.55 0.33 7.98 9.30 12.19
RELI Reliance Bancshares Inc. 49.96 49.96 0.00 46.71 50.33 70.77
RELY Reliance Bancorp Inc. 8.89 6.31 31.00 NA 9.30 NA
RIVR River Valley Bancorp 13.64 13.49 1.31 NA 14.47 NA
ROSE TR Financial Corp. 6.15 6.15 0.00 6.14 6.52 18.64
RSLN Roslyn Bancorp Inc. 16.76 16.70 0.45 11.48 17.42 26.44
RVSB Riverview Bancorp Inc. 22.36 21.79 3.28 17.03 22.72 32.66
SBAN SouthBanc Shares Inc. 7.97 7.97 0.00 7.24 8.50 13.03
SBFL SB of the Finger Lakes (MHC) 8.69 8.69 0.00 8.57 9.14 20.64
SBOS Boston Bancorp (The) 12.34 12.34 0.00 10.06 12.45 26.75
SCBS Southern Community Bancshares 15.85 15.85 0.00 NA 16.96 NA
SCCB S. Carolina Community Bancshrs 20.38 20.38 0.00 18.30 21.02 39.80
SFED SFS Bancorp Inc. 12.36 12.36 0.00 12.36 12.84 23.77
SFFC StateFed Financial Corp. 17.74 17.74 0.00 10.91 18.00 19.20
SFIN Statewide Financial Corp. 9.83 9.82 0.15 9.24 10.26 23.04
SFSB SuburbFed Financial Corp. 6.73 6.71 0.26 6.02 6.92 13.67
SFSL Security First Corp. 9.44 9.31 1.43 7.45 10.19 10.21
SGVB SGV Bancorp Inc. 7.89 7.79 1.30 6.84 8.24 14.54
SHEN First Shenango Bancorp Inc. 11.98 11.98 0.00 9.94 12.78 20.76
SHSB SHS Bancorp Inc. 13.85 13.85 0.00 11.06 14.35 24.53
SIB Staten Island Bancorp Inc. 26.20 25.70 2.56 15.78 26.82 38.46
SISB SIS Bancorp Inc. 7.15 7.15 0.00 7.27 8.44 12.76
SKAN Skaneateles Bancorp Inc. 6.98 6.81 2.53 6.78 7.98 11.35
SKBO First Carnegie Deposit (MHC) 17.19 17.19 0.00 17.19 17.56 57.80
SMBC Southern Missouri Bancorp Inc. 16.77 16.77 0.00 14.04 17.34 26.39
SOBI Sobieski Bancorp Inc. 14.10 14.10 0.00 10.40 14.32 22.50
SOPN First Savings Bancorp Inc. 23.03 23.03 0.00 22.90 23.23 49.68
SOSA Somerset Savings Bank 7.25 7.25 0 7.19 8.73 11.86
SPBC St. Paul Bancorp Inc. 9.34 9.31 0.42 8.60 10.09 17.34
SRN Southern Banc Co. 17.40 17.29 0.76 NA 17.47 NA
SSB Scotland Bancorp Inc. 24.71 24.71 0.00 20.82 25.12 43.06
SSFC South Street Financial Corp. 15.87 15.87 0.00 15.28 16.07 42.84
SSM Stone Street Bancorp Inc. 27.99 27.99 0.00 23.98 28.53 41.77
STFR St. Francis Capital Corp. 8.00 7.21 10.66 7.25 8.46 12.15
STSA Sterling Financial Corp. 5.60 5.24 6.85 7.63 6.10 13.38
SVRN Sovereign Bancorp Inc. 5.46 4.79 12.82 5.71 6.07 12.58
SWBI Southwest Bancshares Inc. 11.62 11.62 0.00 7.94 11.82 13.97
SWCB Sandwich Bancorp Inc. 8.08 7.85 3.16 7.98 8.87 15.27
SZB SouthFirst Bancshares Inc. 10.07 9.85 2.47 9.37 10.55 21.18
THR Three Rivers Financial Corp. 13.52 13.49 0.32 11.63 14.01 22.23
THRD TF Financial Corp. 7.97 6.80 15.79 6.77 8.29 18.36
TPNZ Tappan Zee Financial Inc. 16.85 16.85 0.00 NA 17.40 NA
TRIC Tri-County Bancorp Inc. 15.73 15.73 0.00 13.77 16.19 36.27
TSBK Timberland Bancorp Inc. 32.13 32.13 0.00 31.03 32.80 52.84
TSBS Peoples Bancorp Inc. 12.60 11.57 9.30 11.56 13.01 20.56
TSH Teche Holding Co. 13.83 13.83 0.00 12.57 14.67 24.06
TWIN Twin City Bancorp 12.75 12.75 0.00 11.45 12.85 20.88
UBMT United Financial Corp. 15.27 14.84 3.27 NA 15.87 NA
UCBC Union Community Bancorp 40.03 40.03 0.00 NA 40.27 NA
UFRM United Federal Savings Bank 7.49 7.49 0.00 7.47 8.37 10.11
UPFC United PanAm Financial Corp. 4.19 4.04 3.51 7.27 6.27 12.34
USAB USABancshares Inc. 12.49 12.43 0.62 12.40 13.07 17.20
UTBI United Tennessee Bankshares 26.98 26.98 0.00 19.74 27.82 44.67
WAMU Washington Mutual Inc. 5.27 4.96 6.29 NA 5.93 NA
WAYN Wayne Savings Bancshares (MHC) 9.40 9.40 0.00 9.13 9.68 17.38
WBST Webster Financial Corp. 5.29 4.69 11.84 5.30 5.97 12.96
WCBI Westco Bancorp Inc. 15.44 15.44 0.00 13.65 15.72 30.04
WCFB Webster City Federal SB (MHC) 24.02 24.02 0.00 24.02 24.43 54.17
WEFC Wells Financial Corp. 14.44 14.44 0.00 11.22 14.82 20.36
WEHO Westwood Homestead Fin. Corp. 22.99 22.99 0.00 22.42 23.21 40.51
WES Westcorp 8.73 8.71 0.25 8.81 9.68 11.68
WFI Winton Financial Corp. 7.30 7.19 1.72 NA 7.54 NA
WFSL Washington Federal Inc. 13.41 12.53 7.50 11.69 13.83 21.63
WHGB WHG Bancshares Corp. 16.85 16.85 0.00 13.41 17.10 29.03
</TABLE>
<PAGE>
Page 14 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
--------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- --------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. 1.26 64.69 1.81 21.06 0.81 40.07 1.17 13.96
RELI Reliance Bancshares Inc. - NM 0.00 0.00 0.60 NM 1.02 2.06
RELY Reliance Bancorp Inc. NA NA NA NA 0.90 NA 0.89 10.65
RIVR River Valley Bancorp NA NA NA NA 1.00 NA 0.93 7.28
ROSE TR Financial Corp. 0.87 80.17 0.51 8.22 0.69 65.67 0.99 16.1
RSLN Roslyn Bancorp Inc. 0.83 268.47 0.25 1.48 2.23 264.59 1.32 7.14
RVSB Riverview Bancorp Inc. 0.32 190.33 0.19 0.85 0.60 186.36 1.56 9.15
SBAN SouthBanc Shares Inc. 0.07 NM 0.06 0.77 1.02 NA 0.77 6.99
SBFL SB of the Finger Lakes (MHC) 0.52 181.59 0.27 3.08 0.94 170.49 0.40 4.41
SBOS Boston Bancorp (The) 1.41 42.86 0.65 5.23 0.61 18.09 1.89 21.12
SCBS Southern Community Bancshares 0.36 469.01 0.24 1.49 1.70 308.46 1.13 5.60
SCCB S. Carolina Community Bancshrs 1.42 57.34 1.26 6.17 0.82 50.34 1.01 4.19
SFED SFS Bancorp Inc. 0.84 72.48 0.71 5.73 0.61 66.56 0.65 5.27
SFFC StateFed Financial Corp. 1.83 18.27 1.64 9.27 0.33 15.32 1.26 7.12
SFIN Statewide Financial Corp. 0.77 112.89 0.46 4.64 0.87 84.18 0.81 8.56
SFSB SuburbFed Financial Corp. 1.33 22.4 0.94 13.91 0.3 19.60 0.63 9.55
SFSL Security First Corp. 0.46 178.50 0.42 4.50 0.82 178.44 1.39 14.92
SGVB SGV Bancorp Inc. 1.31 35.06 1.45 18.39 0.46 24.47 0.38 5.10
SHEN First Shenango Bancorp Inc. 1.07 118.58 0.97 8.06 1.27 83.39 1.10 9.39
SHSB SHS Bancorp Inc. 2.12 36.92 1.40 10.11 0.78 36.27 0.77 7.21
SIB Staten Island Bancorp Inc. 1.92 74.94 0.85 3.25 1.44 72.87 0.84 6.06
SISB SIS Bancorp Inc. 0.78 345.56 0.42 5.88 2.70 300.83 0.69 9.64
SKAN Skaneateles Bancorp Inc. 2.00 60.25 2.01 28.87 1.21 49.89 0.64 9.28
SKBO First Carnegie Deposit (MHC) 1.12 76.50 0.50 2.89 0.85 47.72 0.63 4.49
SMBC Southern Missouri Bancorp Inc. 0.75 100.11 0.63 3.78 0.76 89.98 0.70 4.27
SOBI Sobieski Bancorp Inc. 0.15 192.31 0.29 2.03 0.28 77.82 0.58 3.93
SOPN First Savings Bancorp Inc. 0.24 125.31 0.16 0.70 0.30 125.31 1.77 7.66
SOSA Somerset Savings Bank 4.80 39.51 4.58 63.09 1.90 32.38 1.46 22.40
SPBC St. Paul Bancorp Inc. 0.19 545.47 0.16 1.70 1.02 367.36 1.08 12.08
SRN Southern Banc Co. - NM 0 0.00 0.19 NM 0.49 2.84
SSB Scotland Bancorp Inc. - NM 0.00 0.00 0.60 NM 1.48 5.12
SSFC South Street Financial Corp. 0.42 91.68 0.22 1.41 0.39 88.30 0.75 3.34
SSM Stone Street Bancorp Inc. - NM 0.00 0.00 0.62 191.69 1.38 4.44
STFR St. Francis Capital Corp. 0.35 270.40 0.20 2.55 0.95 215.62 0.80 9.93
STSA Sterling Financial Corp. 0.38 222.24 0.72 12.87 0.83 68.74 0.58 10.44
SVRN Sovereign Bancorp Inc. 0.90 116.23 0.60 10.94 1.05 98.91 0.54 9.76
SWBI Southwest Bancshares Inc. 0.23 122.22 0.16 1.40 0.28 122.22 1.13 10.14
SWCB Sandwich Bancorp Inc. 0.35 317.02 0.30 3.72 1.12 228.40 0.98 12.50
SZB SouthFirst Bancshares Inc. - NM 0.07 0.68 0.75 46.23 0.55 4.61
THR Three Rivers Financial Corp. 1.41 52.43 0.98 7.28 0.74 48.12 0.88 6.45
THRD TF Financial Corp. 0.67 126.73 0.30 3.76 0.84 106.83 0.76 7.73
TPNZ Tappan Zee Financial Inc. NA NA NA NA 1.20 43.88 0.87 5.10
TRIC Tri-County Bancorp Inc. - NM 0 0 0.98 NM 1.02 6.65
TSBK Timberland Bancorp Inc. 2.82 32.99 3.54 11.01 0.93 18.18 1.69 10.24
TSBS Peoples Bancorp Inc. 0.83 103.43 0.42 3.34 0.86 63.09 1.13 6.65
TSH Teche Holding Co. 0.22 441.09 0.20 1.43 0.98 423.05 0.94 6.91
TWIN Twin City Bancorp - NM 0.07 0.58 0.14 102.83 1.03 7.99
UBMT United Financial Corp. - NM 0.45 2.97 1.07 101.19 1.16 7.47
UCBC Union Community Bancorp 0.58 51.96 0.45 1.12 0.30 51.96 NA NA
UFRM United Federal Savings Bank 0.19 533.67 0.43 5.79 1.02 137.38 0.60 8.21
UPFC United PanAm Financial Corp. 2.41 97.80 2.31 55.31 2.36 90.16 2.48 71.84
USAB USABancshares Inc. 0.34 294.55 0.20 1.58 0.99 265.63 0.20 2.17
UTBI United Tennessee Bankshares - NM 0.00 0.00 1.31 142.44 NA NA
WAMU Washington Mutual Inc. 0.87 111.45 0.78 14.76 0.97 83.87 0.59 10.56
WAYN Wayne Savings Bancshares (MHC) 0.14 240.33 0.48 5.10 0.35 57.50 0.73 7.72
WBST Webster Financial Corp. 0.96 138.32 0.59 11.25 1.33 114.77 0.79 14.90
WCBI Westco Bancorp Inc. 0.59 62.71 0.45 2.92 0.37 62.71 1.53 9.97
WCFB Webster City Federal SB (MHC) - NM 0.06 0.26 0.70 353.21 1.42 6.06
WEFC Wells Financial Corp. 0.06 748.11 0.07 0.46 0.44 279.23 1.13 7.89
WEHO Westwood Homestead Fin. Corp. 0.08 287.50 0.07 0.32 0.23 178.06 0.61 2.25
WES Westcorp 0.77 246.01 0.55 6.32 1.88 172.31 0.45 4.95
WFI Winton Financial Corp. 0.06 469.19 0.20 2.68 0.27 107.89 1.12 15.51
WFSL Washington Federal Inc. 0.64 88.45 0.75 5.62 0.56 55.29 1.93 15.32
WHGB WHG Bancshares Corp. 1.62 24.18 1.06 6.30 0.39 24.18 0.65 3.29
</TABLE>
<PAGE>
Page 15 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 14.67 13.85 6.45 11.80 15.72 22.23
WRNB Warren Bancorp Inc. 11.04 11.04 0.00 9.54 12.12 12.73
WSB Washington Savings Bank, FSB 8.67 8.67 0.00 8.16 9.12 21.80
WSBI Warwick Community Bancorp 23.05 23.05 0.00 16.07 23.44 30.56
WSFS WSFS Financial Corp. 5.94 5.91 0.56 7.15 7.57 11.77
WSTR WesterFed Financial Corp. 10.62 8.70 19.83 7.93 11.12 13.15
WVFC WVS Financial Corp. 10.99 10.99 0.00 11.14 11.62 23.48
WYNE Wayne Bancorp Inc. 12.70 12.70 0.00 10.60 13.52 22.42
YFCB Yonkers Financial Corp. 13.18 13.18 0.00 11.40 13.55 28.24
YFED York Financial Corp. 8.77 8.77 0.00 7.60 9.45 12.61
- -------------------------------------------------------------------------------------------------
Average 12.95 12.70 3.04 11.17 13.55 22.19
</TABLE>
<PAGE>
Page 15 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
--------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- --------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 1.22 117.95 0.91 6.23 1.44 115.97 0.06 0.45
WRNB Warren Bancorp Inc. 0.70 231.34 1.01 9.12 1.63 107.31 1.74 16.35
WSB Washington Savings Bank, FSB NA NA NA NA 0.99 NA 0.77 9.10
WSBI Warwick Community Bancorp 0.78 100.84 0.50 2.19 0.79 75.47 NA NA
WSFS WSFS Financial Corp. 1.79 185.28 1.20 20.16 3.31 117.99 1.12 19.88
WSTR WesterFed Financial Corp. 0.71 105.43 0.52 4.87 0.75 76.69 0.74 6.96
WVFC WVS Financial Corp. 0.37 310.17 0.2 1.83 1.14 310.17 1.27 11.12
WYNE Wayne Bancorp Inc. 1.17 101.22 0.90 7.05 1.18 91.95 0.71 5.35
YFCB Yonkers Financial Corp. 0.67 115.52 0.41 3.14 0.77 87.23 0.98 6.94
YFED York Financial Corp. 0.08 988.93 1.08 12.35 0.81 28.49 0.88 10.15
- --------------------------------------------------------------------------------------------------------------------
Average 0.71 189.32 0.62 6.99 0.90 137.82 0.93 8.75
</TABLE>
<PAGE>
Page 16 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
-----------------------------------------------------------
Total
Captial
Tangible Regu- Equity + Risk
Equity/ Tang Assets/ Core Cap Reserves/ Adjusted
Assets Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 23.14 22.12 5.66 22.35 23.52 47.75
FLKY First Lancaster Bancshares 26.65 26.65 0.00 26.26 26.97 36.82
GLMR Gilmer Financial Svcs, Inc. 9.02 9.02 0.00 8.80 9.75 19.20
HBBI Home Building Bancorp 14.06 14.06 0.00 10.77 14.26 21.56
HWEN Home Financial Bancorp 18.00 18.00 0.00 15.30 18.70 26.30
LONF London Financial Corp. 13.76 13.76 0.00 16.00 14.24 31.48
MBSP Mitchell Bancorp Inc. 39.31 39.31 0.00 32.30 39.84 59.90
PWBK Pennwood Bancorp Inc. 18.34 18.34 0.00 19.07 19.05 35.77
RELI Reliance Bancshares Inc. 49.96 49.96 0.00 46.71 50.33 70.77
SCCB S. Carolina Community Bancshrs 20.38 20.38 0.00 18.30 21.02 39.80
- -------------------------------------------------------------------------------------------------
Average 23.26 23.16 0.57 21.59 23.77 38.94
Median 19.36 19.36 0.00 18.69 20.04 36.30
Maximum 49.96 49.96 5.66 46.71 50.33 70.77
Minimum 9.02 9.02 0.00 8.80 9.75 19.20
Farnsworth Bancorp, Inc. 5.75 5.54 0.00 5.54 6.07 11.81
Variance to the Comparable Median(13.61) (13.82) 0.00 (13.15) (13.96) (24.49)
</TABLE>
<PAGE>
Page 16 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Profitability as of
Asset Quality as of The Most Recent Quarter The Most Recent Quarter
--------------------------------------------------- --------------------------
NPLs/ Reserves/ NPAs/ NPAs/ Reserves/Reserves/ Return on Return on
Loans NPLs Assets Equity Loans NPAs + 90 Avg Assets Avg Equity
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- --- --------------------------------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. NA NA NA NA 0.66 39.74 0.54 2.25
FLKY First Lancaster Bancshares 1.28 27.91 1.70 6.37 0.36 18.91 1.04 3.46
GLMR Gilmer Financial Svcs, Inc. 2.51 51.93 1.65 18.25 1.30 44.52 0.06 0.59
HBBI Home Building Bancorp 0.99 29.02 0.67 4.79 0.29 29.02 0.75 5.70
HWEN Home Financial Bancorp 1.06 81.67 1.32 7.36 0.86 53.55 0.93 5.32
LONF London Financial Corp. 0.26 238.16 0.20 1.46 0.62 238.16 1.08 5.62
MBSP Mitchell Bancorp Inc. 0.81 84.35 1.56 3.96 0.68 33.74 1.43 3.50
PWBK Pennwood Bancorp Inc. 1.09 99.40 0.74 4.06 1.09 44.68 0.77 4.21
RELI Reliance Bancshares Inc. 0.00 NM 0.00 0.00 0.60 NM 1.02 2.06
SCCB S. Carolina Community Bancshrs 1.42 57.34 1.26 6.17 0.82 50.34 1.01 4.19
- -----------------------------------------------------------------------------------------------------------------------
Average 1.05 83.72 1.01 5.82 0.73 61.41 0.86 3.69
Median 1.06 69.51 1.26 4.79 0.67 44.52 0.97 3.85
Maximum 2.51 238.16 1.70 18.25 1.30 238.16 1.43 5.70
Minimum 0.00 27.91 0.00 0.00 0.29 18.91 0.06 0.59
Farnsworth Bancorp, Inc. 0.94 46.99 0.69 11.96 0.44 46.99 0.60 10.44
Variance to the Comparable Median (0.12) (22.52) (0.57) 7.17 (0.23) 2.47 (0.37) 6.60
</TABLE>
<PAGE>
Page 17 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 2.65 6.83 4.39 2.43 0.96 2.14 59.02 42.89
%CCMD Chevy Chase Bank, FSB 3.76 6.91 3.82 3.09 5.75 7.92 85.61 58.84
AABC Access Anytime Bancorp Inc. 3.11 6.88 3.87 3.00 0.64 3.33 91.21 89.34
ABBK Abington Bancorp Inc. 3.31 7.17 4.02 3.15 0.82 2.67 65.28 56.21
ABCL Alliance Bancorp 2.89 7.14 4.35 2.79 1.24 2.55 63.66 47.53
ABCW Anchor BanCorp Wisconsin 3.18 7.67 4.61 3.06 0.48 1.99 56.06 49.14
AFBC Advance Financial Bancorp 3.94 7.77 3.94 3.84 0.35 2.77 66.65 63.59
AFCB Affiliated Community Bancorp 3.34 7.48 4.23 3.25 0.16 1.68 49.47 47.00
AFED AFSALA Bancorp Inc. 3.51 6.98 3.64 3.34 0.23 2.29 64.12 61.61
AHCI Ambanc Holding Co. 3.26 7.19 4.04 3.16 0.23 2.51 72.73 70.77
AHM H.F. Ahmanson & Co. 2.72 7.15 4.54 2.61 0.54 1.72 49.08 38.64
ALBC Albion Banc Corp. 3.43 7.52 4.21 3.31 0.48 2.95 78.40 75.26
ALBK ALBANK Financial Corp. 3.95 7.34 3.61 3.73 0.40 2.36 53.30 48.27
ALLB Alliance Bank (MHC) 3.50 7.20 3.81 3.39 0.23 2.37 65.51 63.18
AMFC AMB Financial Corp. 3.47 7.43 4.02 3.40 0.57 2.88 72.45 67.81
ANA Acadiana Bancshares Inc. 3.57 7.56 4.07 3.49 0.37 2.21 61.35 57.20
ANDB Andover Bancorp Inc. 3.20 7.23 4.16 3.08 0.38 1.80 50.57 44.39
ANE Alliance Bncp of New England 3.55 7.14 3.74 3.39 0.48 2.82 67.68 63.14
ASBI Ameriana Bancorp 3.19 7.38 4.33 3.05 0.59 2.29 62.86 55.70
ASBP ASB Financial Corp. 3.24 7.56 4.36 3.20 0.24 2.04 59.30 56.21
ASFC Astoria Financial Corp. 2.69 6.94 4.37 2.57 0.19 1.40 44.96 40.89
ATSB AmTrust Capital Corp. 2.82 7.04 4.35 2.69 0.55 2.87 88.31 85.91
AVND Avondale Financial Corp. 4.16 8.49 4.63 3.86 0.98 3.77 78.68 73.27
BANC BankAtlantic Bancorp Inc. 3.56 7.51 4.24 3.27 0.76 2.92 69.42 62.30
BDJI First Federal Bancorp. 3.30 7.29 4.16 3.14 0.54 2.50 67.42 61.82
BFD BostonFed Bancorp Inc. 3.43 7.23 3.94 3.29 0.37 2.36 64.98 61.04
BFFC Big Foot Financial Corp. 3.12 6.62 3.60 3.02 0.12 2.39 75.41 74.39
BFSB Bedford Bancshares Inc. 3.98 7.71 3.90 3.81 0.50 2.30 53.32 47.24
BKC American Bank of Connecticut 3.29 7.23 4.06 3.17 0.53 1.77 45.72 36.56
BKCT Bancorp Connecticut Inc. 3.77 7.52 3.84 3.68 0.34 2.07 51.24 46.74
BKUNA BankUnited Financial Corp. 1.75 7.03 5.33 1.69 0.12 1.21 64.81 62.28
BNKU Bank United Corp. 2.44 7.22 4.93 2.29 0.46 1.58 56.21 47.39
BPLS Bank Plus Corp. 2.15 6.90 4.82 2.08 0.40 1.95 72.90 67.68
BRKL Brookline Bancorp (MHC) 4.08 7.79 3.73 4.06 0.16 1.23 29.25 26.45
BTHL Bethel Bancorp 4.47 8.57 4.34 4.24 0.80 3.89 74.42 69.60
BVCC Bay View Capital Corp. 2.91 7.64 4.85 2.79 0.36 2.12 62.88 58.11
BWFC Bank West Financial Corp. 3.06 7.33 4.44 2.89 0.55 2.60 75.58 70.93
BYFC Broadway Financial Corp. 4.31 7.45 3.30 4.14 0.53 3.97 82.73 80.51
BYS Bay State Bancorp 3.47 7.29 3.86 3.43 0.12 2.75 77.65 76.87
CAFI Camco Financial Corp. 3.61 7.67 4.25 3.42 0.55 2.47 61.67 55.50
CAPS Capital Savings Bancorp Inc. 3.41 7.69 4.39 3.30 0.61 2.29 58.73 51.14
CASB Cascade Financial Corp. 3.23 7.97 4.86 3.10 0.39 2.36 67.19 63.05
CASH First Midwest Financial Inc. 3.26 7.76 4.61 3.15 0.37 1.95 52.47 46.96
CATB Catskill Financial Corp. 4.07 7.26 3.28 3.98 0.14 1.90 46.75 44.84
CAVB Cavalry Bancorp Inc. NA NA NA NA NA NA NA NA
CBCI Calumet Bancorp Inc. 3.97 7.90 4.23 3.67 0.22 0.57 50.01 47.06
CBES CBES Bancorp Inc. 4.49 8.29 3.95 4.34 0.39 3.24 67.01 64.03
CBK Citizens First Financial Corp. 3.34 7.52 4.32 3.21 0.37 2.62 72.73 69.57
CBSA Coastal Bancorp Inc. 2.02 6.93 4.97 1.96 0.22 1.46 62.77 58.59
CCFH CCF Holding Co. 3.95 7.71 4.08 3.63 0.70 4.37 100.99 101.18
CEBK Central Co-operative Bank 3.51 7.14 3.75 3.39 0.22 2.47 65.76 63.50
CENB Century Bancorp Inc. 3.67 7.07 3.45 3.61 0.03 1.59 44.09 43.69
CFB Commercial Federal Corp. 2.68 7.55 4.97 2.58 0.94 1.86 50.35 32.24
CFCP Coastal Financial Corp. 3.85 7.89 4.23 3.66 0.71 2.56 59.10 51.21
CFFC Community Financial Corp. 3.91 7.79 4.07 3.72 0.40 2.16 52.33 47.23
CFKY Columbia Financial of Kentucky NA NA NA NA NA NA NA NA
CFNC Carolina Fincorp Inc. 4.08 7.42 3.51 3.91 0.46 2.67 60.99 56.37
CFSB CFSB Bancorp Inc. 3.07 7.40 4.39 3.01 0.65 1.86 50.81 40.13
CFTP Community Federal Bancorp 3.28 6.79 3.60 3.19 0.14 1.57 46.62 44.21
CIBI Community Investors Bancorp 3.55 7.74 4.29 3.46 0.18 2.05 55.34 52.95
CKFB CKF Bancorp Inc. 3.74 7.58 3.90 3.68 0.11 1.61 42.35 40.67
CLAS Classic Bancshares Inc. 3.85 7.25 3.62 3.62 0.35 2.98 71.98 69.30
CMRN Cameron Financial Corp 3.88 7.98 4.27 3.71 0.11 1.93 50.45 49.02
CMSB Commonwealth Bancorp Inc. 3.30 6.90 3.82 3.08 0.64 2.98 72.72 67.02
</TABLE>
<PAGE>
Page 17 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 5.81 0.24 (3.61) NA NA NA NA NA NA
%CCMD Chevy Chase Bank, FSB 2.20 (26.24) 14.39 NA NA NA NA NA NA
AABC Access Anytime Bancorp Inc. 7.09 43.34 (0.21) 14.61 12.06 12.063 5.147 7.580 7.58
ABBK Abington Bancorp Inc. 11.74 13.83 9.01 65.15 22.00 22.000 10.250 9.700 8.81
ABCL Alliance Bancorp 17.05 (11.28) 1.56 212.64 27.75 28.750 18.500 16.460 16.27
ABCW Anchor BanCorp Wisconsin 6.06 9.50 6.10 362.71 44.00 45.500 21.000 14.280 14.05
AFBC Advance Financial Bancorp 6.85 11.63 4.16 19.86 19.38 20.875 13.500 14.520 14.52
AFCB Affiliated Community Bancorp 8.13 6.13 9.41 260.37 39.25 39.250 19.200 17.830 17.75
AFED AFSALA Bancorp Inc. 8.98 6.17 8.21 27.22 20.44 20.438 12.563 16.450 16.45
AHCI Ambanc Holding Co. 8.72 14.25 4.17 79.85 19.00 19.500 12.688 14.270 14.27
AHM H.F. Ahmanson & Co. 11.96 16.48 11.52 8,223.47 77.50 81.063 35.250 27.070 19.92
ALBC Albion Banc Corp. 9.93 12.78 11.10 7.14 10.25 14.167 6.042 8.280 8.28
ALBK ALBANK Financial Corp. 16.96 10.86 18.46 668.37 50.13 51.438 34.000 28.540 22.32
ALLB Alliance Bank (MHC) 14.27 9.68 11.28 111.27 35.50 35.500 12.250 8.930 8.93
AMFC AMB Financial Corp. 13.41 20.47 10.09 16.71 17.50 17.875 13.125 15.540 15.54
ANA Acadiana Bancshares Inc. 12.16 15.94 2.21 59.74 22.75 24.750 17.500 17.480 17.48
ANDB Andover Bancorp Inc. 14.54 15.84 13.28 221.04 31.90 33.600 21.000 16.980 16.98
ANE Alliance Bncp of New England 4.22 8.35 5.74 37.39 14.00 14.083 6.937 7.910 7.72
ASBI Ameriana Bancorp (3.40) (2.00) (0.24) 63.42 20.75 22.000 15.250 13.900 13.64
ASBP ASB Financial Corp. 5.02 8.77 4.23 26.57 14.25 14.625 11.500 10.680 10.68
ASFC Astoria Financial Corp. 41.70 67.22 38.08 1,446.85 61.81 62.500 34.750 32.880 23.27
ATSB AmTrust Capital Corp. (4.31) (5.50) (7.14) 7.91 13.88 14.500 10.000 14.660 14.51
AVND Avondale Financial Corp. (4.53) (34.06) 8.25 57.33 16.00 18.875 12.750 13.880 13.88
BANC BankAtlantic Bancorp Inc. 27.17 42.01 0.32 426.01 14.50 17.000 12.125 6.580 5.51
BDJI First Federal Bancorp. 5.05 4.42 1.68 19.22 19.88 22.000 11.833 12.350 12.35
BFD BostonFed Bancorp Inc. 9.63 12.10 19.49 128.79 23.00 23.000 14.375 15.890 15.32
BFFC Big Foot Financial Corp. NA NA NA 48.68 21.00 23.938 13.250 15.240 15.24
BFSB Bedford Bancshares Inc. 16.46 7.54 8.37 33.32 28.50 34.750 19.000 18.600 18.60
BKC American Bank of Connecticut 10.64 7.29 7.27 125.61 29.25 29.250 15.563 12.620 12.22
BKCT Bancorp Connecticut Inc. 15.96 4.19 10.83 102.64 20.38 25.000 11.000 9.440 9.44
BKUNA BankUnited Financial Corp. 128.95 109.42 81.31 270.69 14.00 15.625 8.500 9.430 8.18
BNKU Bank United Corp. 19.15 23.97 28.44 1,639.02 50.00 50.000 28.250 20.670 18.68
BPLS Bank Plus Corp. 28.09 7.39 19.03 246.93 14.94 15.625 9.625 9.570 8.76
BRKL Brookline Bancorp (MHC) 20.39 10.28 (4.12) 474.63 16.38 16.563 16.000 9.330 9.33
BTHL Bethel Bancorp 4.55 0.81 (1.91) 15.15 13.25 13.250 10.750 13.710 11.51
BVCC Bay View Capital Corp. 75.44 71.65 110.89 635.12 34.75 37.250 22.625 19.200 12.29
BWFC Bank West Financial Corp. 22.54 17.92 17.02 38.04 14.13 17.500 7.500 8.930 8.93
BYFC Broadway Financial Corp. 8.15 7.26 9.48 9.71 12.50 13.750 10.500 15.070 15.07
BYS Bay State Bancorp 26.69 9.35 5.44 70.35 29.88 29.875 29.375 27.020 27.02
CAFI Camco Financial Corp. 21.83 21.88 18.17 108.45 27.63 27.625 16.667 15.620 14.66
CAPS Capital Savings Bancorp Inc. (2.55) (0.07) 1.04 41.14 23.00 25.250 12.750 12.420 12.42
CASB Cascade Financial Corp. 23.38 31.24 30.21 67.14 15.25 16.800 11.600 8.930 8.93
CASH First Midwest Financial Inc. 9.52 0.88 12.13 61.53 23.25 23.250 15.000 15.920 14.15
CATB Catskill Financial Corp. 8.03 2.16 3.38 78.62 17.75 19.125 13.938 15.540 15.54
CAVB Cavalry Bancorp Inc. NA NA NA 171.50 23.38 NA NA 13.230 13.23
CBCI Calumet Bancorp Inc. (0.87) (0.23) (0.45) 115.45 36.00 39.000 22.833 27.300 27.30
CBES CBES Bancorp Inc. 22.27 22.65 16.84 19.38 23.00 26.000 15.875 17.630 17.63
CBK Citizens First Financial Corp. 3.03 3.47 0.77 51.03 21.50 22.375 14.625 15.270 15.27
CBSA Coastal Bancorp Inc. 3.98 9.47 3.92 192.83 33.25 35.500 22.750 21.650 18.66
CCFH CCF Holding Co. 64.55 52.88 77.45 19.74 21.50 22.000 14.318 12.900 12.90
CEBK Central Co-operative Bank 13.20 13.49 6.48 54.77 28.50 30.250 15.875 18.350 16.59
CENB Century Bancorp Inc. 4.43 14.75 4.01 25.74 37.67 39.000 22.667 14.580 14.58
CFB Commercial Federal Corp. 7.68 NA 0.60 1,397.98 36.38 36.500 21.417 14.630 12.79
CFCP Coastal Financial Corp. 20.35 9.07 6.31 124.96 18.00 20.813 12.094 5.630 5.63
CFFC Community Financial Corp. 9.73 8.31 16.53 37.11 13.81 13.813 10.500 9.760 9.72
CFKY Columbia Financial of Kentucky NA NA NA 40.07 NA NA NA NA NA
CFNC Carolina Fincorp Inc. 9.01 11.96 11.00 31.44 17.63 18.750 14.125 13.900 13.90
CFSB CFSB Bancorp Inc. 1.43 0.79 3.01 217.84 26.82 28.295 11.708 7.950 7.95
CFTP Community Federal Bancorp 23.31 10.07 5.38 79.23 18.50 21.000 16.375 14.760 14.76
CIBI Community Investors Bancorp 4.40 12.11 4.66 18.24 20.25 20.25 11.5 12.56 12.56
CKFB CKF Bancorp Inc. 3.94 4.86 5.52 16.25 20.00 21.250 17.750 17.070 17.07
CLAS Classic Bancshares Inc. 3.45 11.53 2.42 20.15 16.75 17.250 11.625 15.380 13.12
CMRN Cameron Financial Corp 11.73 8.74 7.61 52.18 20.25 21.000 15.875 17.910 17.91
CMSB Commonwealth Bancorp Inc. 6.91 22.26 5.45 389.49 21.31 22.125 13.500 13.410 10.72
</TABLE>
<PAGE>
Page 18 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 3.49 7.26 3.97 3.29 0.52 2.71 71.32 66.80
CNIT CENIT Bancorp Inc. 3.27 7.27 4.19 3.08 0.80 2.47 61.43 51.38
CNSB CNS Bancorp Inc. 3.65 7.21 3.72 3.49 0.19 2.37 64.62 62.73
CNY Carver Bancorp Inc. 3.12 6.47 3.49 2.98 0.33 2.67 79.03 76.72
COFI Charter One Financial 2.93 7.38 4.56 2.82 0.72 1.65 45.61 31.79
CONE Conestoga Bancorp, Inc. 3.13 6.65 3.75 2.89 0.17 1.93 63.13 60.99
COOP Cooperative Bankshares Inc. 3.01 7.40 4.49 2.92 0.17 2.09 66.88 64.98
CRSB Crusader Holding Corp. NA NA NA NA NA NA NA NA
CRZY Crazy Woman Creek Bancorp 3.49 7.35 3.92 3.43 0.14 1.65 46.32 44.09
CSBF CSB Financial Group Inc. 3.56 6.87 3.43 3.45 0.22 2.73 70.93 69.07
CTZN CitFed Bancorp Inc. 2.36 6.90 4.66 2.24 1.03 1.89 54.90 34.18
CVAL Chester Valley Bancorp Inc. 3.83 7.73 3.99 3.74 0.40 2.61 63.10 59.17
DCBI Delphos Citizens Bancorp Inc. 3.93 7.43 3.56 3.88 0.31 1.80 42.96 38.38
DIBK Dime Financial Corp. 3.23 7.25 4.08 3.17 0.23 1.47 41.92 37.74
DIME Dime Community Bancorp Inc. 3.72 7.34 3.79 3.55 0.27 2.00 47.30 43.34
DME Dime Bancorp Inc. 2.54 6.85 4.45 2.40 0.61 1.91 62.06 52.42
DNFC D & N Financial Corp. 3.03 7.70 4.73 2.97 0.40 2.14 63.44 58.52
DSL Downey Financial Corp. 2.84 7.41 4.69 2.72 0.33 1.56 57.19 52.04
EBI Equality Bancorp Inc. 2.42 6.75 4.42 2.33 0.62 2.68 90.79 88.35
EBSI Eagle Bancshares 4.09 8.25 4.53 3.72 1.62 3.90 77.84 68.21
EFBC Empire Federal Bancorp Inc. 4.39 7.09 2.80 4.29 0.78 2.63 51.85 43.14
EFBI Enterprise Federal Bancorp 2.66 7.55 4.94 2.61 0.05 1.55 57.66 56.83
EFC EFC Bancorp Inc. 3.47 7.38 3.97 3.41 0.23 2.32 63.62 61.14
EGLB Eagle BancGroup Inc. 2.52 7.14 4.72 2.43 0.20 2.22 85.13 83.92
EMLD Emerald Financial Corp. 2.87 7.51 4.73 2.78 0.36 1.59 50.10 43.70
EQSB Equitable Federal Savings Bank 2.44 7.30 4.92 2.38 0.48 1.71 59.51 51.34
ESBF ESB Financial Corp. 2.10 6.91 4.86 2.05 0.14 1.19 51.10 47.82
ESBK Elmira Savings Bank (The) 3.73 7.55 4.03 3.52 0.58 3.18 76.29 72.40
ESX Essex Bancorp Inc. 3.04 7.80 4.92 2.88 1.21 4.25 93.95 91.40
ETFS East Texas Financial Services 2.96 6.92 4.03 2.89 0.20 2.25 73.02 71.13
FAB FIRSTFED AMERICA BANCORP INC. 2.74 6.80 4.11 2.68 0.42 1.97 63.49 57.84
FBBC First Bell Bancorp Inc. 2.48 7.10 4.66 2.44 0.07 0.76 30.32 28.18
FBCI Fidelity Bancorp Inc. 2.98 7.35 4.43 2.91 0.23 1.85 58.56 55.33
FBCV 1ST Bancorp 2.60 7.50 5.02 2.49 0.45 2.17 70.84 65.58
FBER 1st Bergen Bancorp 3.32 7.13 3.92 3.21 0.11 2.08 62.41 61.13
FBHC Fort Bend Holding Corp. 3.24 6.97 4.00 2.97 1.83 3.98 84.03 74.22
FBNW FirstBank Corp. 4.31 7.97 3.92 4.05 0.76 3.71 77.19 72.94
FBSI First Bancshares Inc. 3.60 7.69 4.26 3.44 0.32 2.06 55.81 51.68
FCB Falmouth Bancorp Inc. 4.13 7.06 3.06 4.00 0.17 2.85 68.45 67.12
FCBF FCB Financial Corp. 3.46 7.74 4.34 3.40 0.38 1.82 48.07 42.34
FCBH Virginia Beach Fed. Financial NA NA NA NA NA NA NA NA
FCBK First Coastal Bankshares 3.22 7.96 4.84 3.12 0.44 2.66 73.95 70.24
FCME First Coastal Corp. 4.49 8.05 3.88 4.17 0.42 3.43 74.22 71.65
FDEF First Defiance Financial 4.18 7.84 3.86 3.98 0.25 2.52 58.22 55.63
FED FirstFed Financial Corp. 2.45 7.30 4.94 2.36 0.20 1.07 41.03 35.98
FESX First Essex Bancorp Inc. 3.27 7.56 4.42 3.14 0.24 1.92 53.72 50.19
FFBA First Colorado Bancorp Inc. 3.29 7.10 3.94 3.16 0.38 1.63 47.74 41.40
FFBH First Federal Bancshares of AR 3.18 7.60 4.47 3.12 0.26 1.91 57.10 53.48
FFBI First Financial Bancorp Inc. 3.08 7.18 4.25 2.93 0.55 2.97 85.19 82.41
FFBS FFBS BanCorp Inc. 3.70 7.48 3.84 3.64 0.50 1.92 46.26 38.94
FFBZ First Federal Bancorp Inc. 3.72 7.69 4.31 3.38 0.47 2.36 59.73 54.19
FFCH First Financial Holdings Inc. 3.10 7.53 4.54 2.99 0.72 2.20 59.37 49.66
FFDB FirstFed Bancorp Inc. 3.62 7.61 4.12 3.49 0.50 2.17 59.64 53.84
FFDF FFD Financial Corp. 3.34 7.01 3.71 3.30 0.07 2.07 61.53 60.67
FFED Fidelity Federal Bancorp 2.80 7.99 5.38 2.61 1.18 3.05 80.57 71.76
FFES First Federal of East Hartford 2.33 6.75 4.48 2.27 0.16 1.37 56.40 53.24
FFFD North Central Bancshares Inc. 3.79 7.30 3.67 3.64 1.05 2.10 44.02 27.82
FFFL Fidelity Bankshares Inc. (MHC) 3.08 7.22 4.30 2.92 0.40 2.31 69.02 64.78
FFHH FSF Financial Corp. 2.98 7.41 4.51 2.90 0.41 1.92 57.96 51.98
FFHS First Franklin Corp. 2.73 7.27 4.62 2.65 0.21 1.78 61.33 58.25
FFIC Flushing Financial Corp. 3.59 7.56 4.07 3.48 0.28 2.15 56.17 52.61
FFKY First Federal Financial Corp. 4.17 7.95 4.05 3.89 0.61 2.07 44.58 35.87
FFLC FFLC Bancorp Inc. 3.56 7.56 4.14 3.42 0.24 2.02 55.19 52.03
FFOH Fidelity Financial of Ohio 3.03 7.27 4.36 2.91 0.21 1.74 52.18 48.66
</TABLE>
<PAGE>
Page 18 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 11.48 23.51 9.01 175.95 38.63 40.750 19.625 16.520 16.52
CNIT CENIT Bancorp Inc. 3.91 17.76 4.33 115.90 26.33 28.083 13.333 10.670 9.84
CNSB CNS Bancorp Inc. (0.61) 7.94 (1.37) 28.78 18.25 21.500 15.000 14.640 14.64
CNY Carver Bancorp Inc. 3.11 39.73 3.20 30.66 14.88 17.125 9.125 15.560 15.02
COFI Charter One Financial 7.90 21.56 3.37 4,564.83 33.47 33.563 20.119 11.190 10.50
CONE Conestoga Bancorp, Inc. 11.04 (0.08) 13.23 NA 20.63 20.780 14.375 17.580 17.58
COOP Cooperative Bankshares Inc. 9.45 3.58 6.96 53.36 19.50 25.000 10.250 9.760 9.76
CRSB Crusader Holding Corp. NA NA NA 58.63 15.50 NA NA 6.070 NA
CRZY Crazy Woman Creek Bancorp 18.52 4.84 8.88 17.31 17.00 17.250 13.000 15.230 15.23
CSBF CSB Financial Group Inc. (0.03) 0.45 2.14 11.54 13.75 13.750 11.000 13.230 12.48
CTZN CitFed Bancorp Inc. 20.30 17.89 5.28 651.90 56.25 56.625 22.000 16.890 15.56
CVAL Chester Valley Bancorp Inc. 12.67 8.29 14.88 69.77 35.13 37.000 15.714 13.640 13.64
DCBI Delphos Citizens Bancorp Inc. 5.19 19.39 3.81 38.60 20.00 24.250 12.438 14.760 14.76
DIBK Dime Financial Corp. 24.80 (4.58) 24.17 183.78 36 37.000 18.000 15.710 15.33
DIME Dime Community Bancorp Inc. 27.47 29.54 7.41 358.43 24.50 25.500 16.625 15.220 13.24
DME Dime Bancorp Inc. 19.28 50.55 8.88 3,477.78 30.06 31.063 14.875 11.370 9.30
DNFC D & N Financial Corp. 22.18 27.40 3.06 244.54 28.00 28.063 15.682 11.030 10.94
DSL Downey Financial Corp. 7.06 8.89 13.67 969.23 30.83 30.952 17.233 15.880 15.70
EBI Equality Bancorp Inc. 13.17 12.06 (4.12) 33.25 14.50 15.375 12.000 10.310 10.31
EBSI Eagle Bancshares 15.84 21.55 11.98 135.10 22.00 22.000 14.750 12.840 12.84
EFBC Empire Federal Bancorp Inc. 2.46 8.44 0.25 43.09 17.38 18.250 12.500 15.680 15.68
EFBI Enterprise Federal Bancorp 42.43 44.57 39.05 64.12 32.50 35.000 15.250 16.470 16.06
EFC EFC Bancorp Inc. 40.21 8.76 7.29 101.61 NA NA NA NA NA
EGLB Eagle BancGroup Inc. 5.68 6.97 (0.14) 23.25 20.63 21.125 14.750 17.560 17.56
EMLD Emerald Financial Corp. 4.61 4.84 3.47 133.41 11.06 12.375 5.688 4.960 4.90
EQSB Equitable Federal Savings Bank 13.20 NA 6.54 37.14 33.00 33.000 16.625 14.260 14.26
ESBF ESB Financial Corp. 33.89 57.17 19.33 105.15 17.44 18.182 11.157 11.830 10.56
ESBK Elmira Savings Bank (The) 3.19 1.84 2.96 21.25 29.50 30.375 18.333 20.000 20.00
ESX Essex Bancorp Inc. 7.29 10.7 13.41 3.84 4.88 7.938 1.000 (3.760) (9.65)
ETFS East Texas Financial Services 8.29 17.97 (2.10) 21.94 15.00 16.250 11.250 13.690 13.69
FAB FIRSTFED AMERICA BANCORP INC. 30.83 13.99 (2.14) 167.50 21.13 22.125 13.625 15.990 15.99
FBBC First Bell Bancorp Inc. (6.26) 4.27 (4.66) 128.86 21.00 21.625 14.500 11.430 11.43
FBCI Fidelity Bancorp Inc. (0.34) 4.82 0.02 66.22 24.75 26.000 18.500 18.520 18.49
FBCV 1ST Bancorp (4.95) 4.85 (16.32) 30.52 26.50 29.286 18.412 21.490 21.13
FBER 1st Bergen Bancorp 25.28 5.70 7.29 52.20 19.75 20.750 12.875 13.540 13.54
FBHC Fort Bend Holding Corp. 8.69 27.04 7.22 39.78 21.75 24.000 11.000 12.280 11.51
FBNW FirstBank Corp. 33.33 28.73 6.41 40.17 20.00 21.000 15.500 16.400 16.40
FBSI First Bancshares Inc. 11.18 11.36 23.19 28.77 15.50 17.500 9.500 10.810 10.35
FCB Falmouth Bancorp Inc. 16.48 47.68 16.18 29.10 23.25 23.875 13.250 16.190 16.19
FCBF FCB Financial Corp. 93.62 78.23 106.79 123.75 29.50 30.000 18.500 18.970 18.97
FCBH Virginia Beach Fed. Financial NA NA NA 89.37 20.25 NA NA NA NA
FCBK First Coastal Bankshares 2.94 (0.03) 3.98 NA 20.25 20.875 9.750 8.960 8.96
FCME First Coastal Corp. (0.74) 6.78 1.63 18.35 14.00 15.750 8.875 11.100 11.10
FDEF First Defiance Financial 5.75 7.13 6.49 122.36 15.25 16.250 12.375 12.540 12.54
FED FirstFed Financial Corp. (1.51) 2.03 6.08 548.82 41.88 42.688 22.5 21.95 21.79
FESX First Essex Bancorp Inc. 12.77 (0.20) 7.72 171.41 24.13 26.125 14.500 12.090 10.66
FFBA First Colorado Bancorp Inc. 3.30 8.09 3.03 482.08 29.00 29.000 16.000 12.650 12.40
FFBH First Federal Bancshares of AR 9.74 8.48 7.17 134.03 29.50 30.250 17.500 17.200 17.20
FFBI First Financial Bancorp Inc. (12.52) (25.95) 2.60 10.49 21.00 21.000 15.500 18.370 18.37
FFBS FFBS BanCorp Inc. 7.34 11.76 6.52 34.98 21.25 26.000 21.000 15.070 15.07
FFBZ First Federal Bancorp Inc. 10.41 8.69 4.19 39.77 25.75 25.750 17.000 10.240 10.23
FFCH First Financial Holdings Inc. 15.99 10.79 7.93 312.98 26.13 27.000 11.875 8.700 8.70
FFDB FirstFed Bancorp Inc. 1.30 (7.33) 2.19 28.87 21.63 22.750 12.500 15.000 13.77
FFDF FFD Financial Corp. 17.37 27.22 10.89 33.15 22.75 22.750 13.000 15.430 15.43
FFED Fidelity Federal Bancorp (21.12) (20.97)(21.06) 23.06 9.81 10.500 7.500 4.280 4.28
FFES First Federal of East Hartford 1.67 15.03 1.26 101.06 40.50 40.500 23.000 25.260 25.26
FFFD North Central Bancshares Inc. 63.55 46.37 84.88 71.45 22.25 22.875 15.000 15.720 13.68
FFFL Fidelity Bankshares Inc. (MHC) 42.48 30.78 23.87 201.51 30.88 35.375 18.750 13.010 12.62
FFHH FSF Financial Corp. 11.91 18.58 3.97 56.50 20.25 21.250 16.375 16.180 16.18
FFHS First Franklin Corp. 2.70 0.70 2.72 30.62 18.33 20.833 11.333 12.010 11.96
FFIC Flushing Financial Corp. 32.95 47.94 11.00 211.35 24.88 25.500 18.000 17.520 16.85
FFKY First Federal Financial Corp. 9.41 8.66 10.35 112.53 21.75 23.500 18.250 13.020 12.33
FFLC FFLC Bancorp Inc. 13.98 34.48 10.76 74.48 19.50 23.500 15.000 13.860 13.86
FFOH Fidelity Financial of Ohio 5.33 2.12 1.13 96.51 18.13 18.250 12.375 11.640 10.31
</TABLE>
<PAGE>
Page 19 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 2.66 7.33 4.77 2.56 0.41 2.07 69.27 64.35
FFSL First Independence Corp. 2.92 7.44 4.61 2.83 0.22 1.91 63.44 60.54
FFSX First Fed SB of Siouxland(MHC) 3.09 7.40 4.46 2.94 0.56 2.31 65.84 59.32
FFWC FFW Corp. 3.25 7.64 4.50 3.14 0.47 1.98 52.88 45.77
FFWD Wood Bancorp Inc. 4.36 8.16 3.96 4.20 0.26 2.42 54.32 51.53
FFYF FFY Financial Corp. 3.76 7.79 4.14 3.65 0.20 1.86 48.24 45.39
FGHC First Georgia Holding Inc. 4.27 8.49 4.50 4.00 0.93 3.19 63.61 55.17
FIBC Financial Bancorp Inc. 3.64 7.23 3.78 3.45 0.25 1.88 50.82 47.22
FISB First Indiana Corp. 4.24 8.34 4.28 4.06 0.77 2.65 55.19 46.68
FKFS First Keystone Financial 3.32 7.34 4.12 3.22 0.29 2.30 65.56 62.49
FKKY Frankfort First Bancorp Inc. 3.23 7.27 4.11 3.16 0.04 1.47 46.13 45.47
FLAG FLAG Financial Corp. 5.34 8.39 4.34 4.04 1.49 4.25 76.37 67.65
FLFC First Liberty Financial Corp. 3.94 7.86 4.30 3.56 0.89 2.71 58.13 47.63
FLGS Flagstar Bancorp Inc. 2.46 7.05 4.80 2.25 3.78 3.55 52.32 (27.81)
FLKY First Lancaster Bancshares 4.50 8.27 3.84 4.43 0.00 2.58 58.27 58.27
FMBD First Mutual Bancorp Inc. 3.11 7.05 4.18 2.87 0.38 2.72 78.23 75.31
FMCO FMS Financial Corp. 3.64 7.22 3.74 3.48 0.42 2.39 58.31 53.25
FMSB First Mutual Savings Bank 3.76 8.39 4.73 3.66 0.35 2.39 59.51 55.63
FNGB First Northern Capital Corp. 3.23 7.29 4.18 3.11 0.45 2.06 57.95 51.88
FOBC Fed One Bancorp 3.31 7.24 4.05 3.20 0.18 2.01 57.39 54.98
FPRY First Financial Bancorp 3.13 7.64 4.68 2.95 0.50 2.71 77.74 74.01
FSBI Fidelity Bancorp Inc. 2.83 7.06 4.30 2.76 0.25 1.82 60.34 56.80
FSFF First SecurityFed Financial NA NA NA NA NA NA NA NA
FSLA First Source Bancorp Inc. 3.20 7.03 3.97 3.06 0.23 1.70 48.72 44.91
FSNJ Bayonne Bancshares Inc. 2.61 6.74 4.19 2.55 0.21 1.67 60.02 56.72
FSPG First Home Bancorp Inc. 3.01 7.54 4.61 2.93 0.20 1.75 54.06 50.93
FSPT FirstSpartan Financial Corp. 3.86 7.14 3.40 3.75 0.35 1.87 45.68 40.56
FSSB First FS&LA of San Bernardino 3.56 7.66 4.34 3.32 0.91 4.38 98.33 97.87
FSTC First Citizens Corp. 4.46 7.86 3.62 4.24 0.71 2.28 65.26 59.48
FTF Texarkana First Financial Corp 3.86 7.96 4.19 3.76 0.51 1.53 36.04 27.42
FTFC First Federal Capital Corp. 3.11 7.49 4.55 2.94 1.23 2.66 62.19 46.37
FTNB Fulton Bancorp Inc. 3.81 7.60 3.86 3.74 0.45 2.56 60.27 55.51
FTSB Fort Thomas Financial Corp. 4.11 8.50 4.49 4.01 0.32 2.35 54.43 50.81
FWWB First SB of Washington Bancorp 3.69 7.78 4.23 3.55 0.31 1.94 47.97 43.46
GAF GA Financial Inc. 3.45 7.18 3.85 3.33 0.29 1.98 53.97 49.98
GBNK Gaston Federal Bancorp (MHC) NA NA NA NA NA NA NA NA
GDW Golden West Financial 2.40 7.42 5.09 2.33 0.20 0.84 33.34 27.62
GFCO Glenway Financial Corp. 3.22 7.54 4.43 3.12 0.3 1.99 56.07 51.78
GFED Guaranty Federal Bcshs Inc. 3.75 7.65 4.07 3.59 0.36 2.12 53.92 49.25
GLMR Gilmer Financial Svcs, Inc. 2.78 7.50 4.74 2.76 0.51 2.41 73.93 69.11
GOSB GSB Financial Corp. 3.80 6.28 2.63 3.66 0.19 2.69 69.95 68.36
GPT GreenPoint Financial Corp. 3.87 7.45 3.85 3.61 0.36 2.02 42.57 36.88
GSB Golden State Bancorp Inc. 2.77 7.03 4.41 2.62 0.61 1.82 54.96 44.38
GSBC Great Southern Bancorp Inc. 4.15 8.24 4.27 3.97 1.45 2.65 49.76 31.45
GSFC Green Street Financial Corp. 4.36 7.44 3.13 4.31 0.07 1.79 40.97 40.04
GSLA GS Financial Corp. 4.78 7.11 2.50 4.61 0.01 2.47 53.16 53.02
GTPS Great American Bancorp 4.30 7.37 3.34 4.03 0.62 3.38 73.12 68.95
GUPB GFSB Bancorp Inc. 2.96 7.39 4.46 2.93 0.07 1.61 53.64 52.50
HALL Hallmark Capital Corp. 2.60 7.71 5.19 2.52 0.22 1.58 57.50 53.82
HARB Harbor Florida Bancshares Inc. 3.87 7.83 4.07 3.76 0.36 1.99 47.89 42.91
HARL Harleysville Savings Bank 2.73 7.41 4.74 2.67 0.12 1.24 44.82 42.39
HARS Harris Financial Inc. (MHC) 2.47 7.09 4.70 2.39 0.32 1.80 63.64 58.82
HAVN Haven Bancorp Inc. 2.98 7.09 4.25 2.84 0.84 2.71 73.25 65.33
HBBI Home Building Bancorp 3.54 7.56 4.14 3.43 0.25 2.50 68.18 65.89
HBEI Home Bancorp of Elgin Inc. 4.26 7.09 3.00 4.08 0.28 3.21 73.71 71.90
HBFW Home Bancorp 2.84 7.41 4.62 2.78 0.08 1.39 48.52 47.04
HBNK Highland Bancorp Inc. 4.35 8.84 4.80 4.03 0.35 1.87 40.53 35.40
HBS Haywood Bancshares Inc. 3.35 7.40 4.19 3.21 0.28 1.12 55.73 51.84
HBSC Heritage Bancorp Inc. NA NA NA NA NA NA NA NA
HCBB HCB Bancshares Inc. 3.15 7.27 4.24 3.03 0.25 2.67 79.15 77.41
HCBC High Country Bancorp Inc. 4.41 8.07 3.86 4.21 0.20 3.31 75.02 73.84
HCFC Home City Financial Corp. NA NA NA NA NA NA NA NA
HEMT HF Bancorp Inc. 2.47 7.06 4.67 2.39 0.26 2.20 70.70 67.50
HFBC HopFed Bancorp Inc. 2.43 6.31 3.92 2.39 0.24 0.98 37.18 30.90
</TABLE>
<PAGE>
Page 19 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 14.96 (2.47) 5.28 222.62 40.25 44.938 26.563 23.140 22.64
FFSL First Independence Corp. 13.97 21.08 13.53 13.28 14.75 15.625 10.875 12.090 12.09
FFSX First Fed SB of Siouxland(MHC) 23.42 22.81 19.91 103.58 33.50 35.750 20.750 14.510 11.49
FFWC FFW Corp. 25.42 20.44 26.28 24.64 20.00 21.500 12.750 13.140 12.06
FFWD Wood Bancorp Inc. 0.92 3.99 9.53 47.91 20.00 27.000 8.466 8.180 8.18
FFYF FFY Financial Corp. 7.68 1.92 0.83 133.04 33.38 35.375 25.500 20.830 20.83
FGHC First Georgia Holding Inc. 19.32 20.73 20.68 43.99 12.13 12.625 7.000 4.440 4.14
FIBC Financial Bancorp Inc. 15.29 17.01 10.88 46.93 25.00 27.000 14.875 16.430 16.36
FISB First Indiana Corp. 13.96 14.00 10.72 317.88 26.88 30.000 14.479 12.270 12.13
FKFS First Keystone Financial 22.41 8.74 6.32 45.25 18.25 19.000 10.625 10.650 10.65
FKKY Frankfort First Bancorp Inc. 3.88 6.09 (4.25) 26.31 16.81 24.500 15.750 13.960 13.96
FLAG FLAG Financial Corp. 78.08 81.69 66.01 92.47 13.42 14.333 7.833 7.450 7.45
FLFC First Liberty Financial Corp. 8.57 6.15 11.25 273.24 22.33 22.917 14.000 8.570 7.84
FLGS Flagstar Bancorp Inc. 68.78 70.72 78.19 340.04 26.50 26.500 13.000 9.770 9.46
FLKY First Lancaster Bancshares 31.04 36.26 11.17 14.32 15.25 16.375 14.625 14.920 14.92
FMBD First Mutual Bancorp Inc. (8.09) 1.59 (5.32) 59.58 19.75 25.000 13.750 16.950 13.12
FMCO FMS Financial Corp. 20.78 (3.32) 7.46 112.55 35.50 36.000 18.750 16.610 16.45
FMSB First Mutual Savings Bank 10.09 19.52 16.62 70.30 18.00 20.167 10.606 7.750 7.75
FNGB First Northern Capital Corp. 9.57 8.46 5.89 121.49 13.63 14.000 9.125 8.430 8.43
FOBC Fed One Bancorp 6.20 16.42 4.29 92.48 36.25 37.000 17.625 17.830 17.12
FPRY First Financial Bancorp 10.78 25.03 10.52 NA 20.75 21.125 17.250 17.070 17.07
FSBI Fidelity Bancorp Inc. 22.88 27.40 12.08 47.23 25.30 25.600 14.727 14.020 14.02
FSFF First SecurityFed Financial NA NA NA 107.33 15.50 NA NA 14.590 14.55
FSLA First Source Bancorp Inc. 14.03 17.04 1.64 317.40 10.86 13.927 4.878 NA NA
FSNJ Bayonne Bancshares Inc. 5.54 (2.88) (4.20) 148.26 13.38 13.375 7.160 10.630 10.63
FSPG First Home Bancorp Inc. 7.38 4.35 11.18 85.72 31.81 32.125 18.000 14.100 13.92
FSPT FirstSpartan Financial Corp. 29.62 18.87 7.34 194.92 45.13 45.125 35.000 29.870 29.87
FSSB First FS&LA of San Bernardino 0.37 11.00 1.86 3.16 9.75 11.500 9.000 13.680 13.18
FSTC First Citizens Corp. 36.90 31.41 42.51 84.56 34.00 35.500 14.167 12.860 10.28
FTF Texarkana First Financial Corp 9.92 5.41 6.95 52.32 27.75 29.500 15.625 15.990 15.99
FTFC First Federal Capital Corp. 3.27 7.99 14.54 321.70 33 34.000 16.833 12.240 11.61
FTNB Fulton Bancorp Inc. 10.21 6.69 3.65 33.57 22.00 26.500 17.500 15.060 15.06
FTSB Fort Thomas Financial Corp. 7.31 8.40 9.16 22.11 15.06 15.625 9.250 10.870 10.87
FWWB First SB of Washington Bancorp 16.34 26.39 9.36 246.21 27.50 28.563 18.000 16.120 14.93
GAF GA Financial Inc. 22.04 43.76 3.19 153.80 20.38 20.750 14.875 15.090 14.95
GBNK Gaston Federal Bancorp (MHC) NA NA NA 71.94 NA NA NA NA NA
GDW Golden West Financial 2.96 6.64 7.04 6,215.10 95.81 98.563 59.875 49.220 49.22
GFCO Glenway Financial Corp. 6.99 10.62 -0.87 54.78 20.00 21.25 10.25 12.6 12.49
GFED Guaranty Federal Bcshs Inc. 25.65 26.02 (1.12) 80.16 12.50 14.436 6.409 11.210 11.21
GLMR Gilmer Financial Svcs, Inc. 7.89 14.84 14.24 2.70 11.00 12.000 10.000 19.880 19.88
GOSB GSB Financial Corp. 24.30 NA (0.65) 38.78 17.38 18.938 14.250 14.880 14.88
GPT GreenPoint Financial Corp. (0.25) 15.72 (3.23) 3,494.90 35.94 37.313 25.875 17.430 9.72
GSB Golden State Bancorp Inc. 3.45 4.38 5.52 2,175.04 38.19 38.813 22.500 16.980 15.41
GSBC Great Southern Bancorp Inc. 19.98 12.62 7.39 207.99 25.50 26.250 16.000 8.310 8.25
GSFC Green Street Financial Corp. 2.03 6.04 2.74 70.38 18.25 20.750 17.000 14.810 14.81
GSLA GS Financial Corp. (4.39) 23.40 (46.68) 58.20 20.63 21.000 13.375 16.080 16.08
GTPS Great American Bancorp 6.05 15.40 9.46 34.55 20.88 21.500 15.500 18.380 18.38
GUPB GFSB Bancorp Inc. 35.97 53.87 21.50 18.62 15.00 15.000 11.417 12.140 12.14
HALL Hallmark Capital Corp. 2.85 4.20 2.41 44.00 15.50 18.000 8.750 11.680 11.68
HARB Harbor Florida Bancshares Inc. 16.24 10.63 2.34 364.55 11.88 12.564 5.824 8.290 8.19
HARL Harleysville Savings Bank 10.54 5.29 5.20 54.13 31.00 31.125 20.250 14.660 14.66
HARS Harris Financial Inc. (MHC) 16.31 6.87 (3.09) 817.13 26.63 27.875 6.042 5.410 4.86
HAVN Haven Bancorp Inc. 16.78 28.38 26.75 234.14 24.25 25.000 15.250 12.910 12.88
HBBI Home Building Bancorp (4.79) 1.69 (7.69) 7.48 21.25 23.750 18.500 20.610 20.61
HBEI Home Bancorp of Elgin Inc. 2.87 15.23 5.81 112.26 17.00 19.313 14.125 13.95 13.95
HBFW Home Bancorp 7.80 17.25 8.91 75.15 33.56 37.625 20.125 18.040 18.04
HBNK Highland Bancorp Inc. 15.72 12.83 8.24 99.29 38.50 38.500 20.500 18.760 18.76
HBS Haywood Bancshares Inc. 3.88 3.51 2.97 28.45 22.50 23.000 15.625 18.050 17.48
HBSC Heritage Bancorp Inc. NA NA NA 93.73 NA NA NA NA NA
HCBB HCB Bancshares Inc. 16.12 8.46 (1.86) 39.68 14.50 14.5 12.625 14.45 13.95
HCBC High Country Bancorp Inc. NA NA NA 19.84 15.25 15.500 14.438 13.650 13.65
HCFC Home City Financial Corp. NA NA NA 14.02 18.63 NA NA 15.690 15.69
HEMT HF Bancorp Inc. 8.26 25.98 3.34 108.42 17.00 18.250 12.250 13.270 11.26
HFBC HopFed Bancorp Inc. 8.92 7.29 (12.54) 83.45 17.75 17.750 16.000 14.260 14.26
</TABLE>
<PAGE>
Page 20 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp 3.65 7.15 3.57 3.58 0.10 1.54 41.82 40.27
HFFC HF Financial Corp. 3.78 8.05 4.46 3.59 1.68 3.31 61.40 43.37
HFGI Harrington Financial Group 1.14 6.44 5.32 1.11 0.05 1.11 94.75 94.50
HFNC HFNC Financial Corp. 3.33 7.66 4.43 3.23 0.11 1.81 53.84 52.26
HFSA Hardin Bancorp Inc. 2.72 7.84 4.93 2.90 0.29 1.97 61.99 58.20
HFWA Heritage Financial Corp. NA NA NA NA NA NA NA NA
HHFC Harvest Home Financial Corp. 2.56 7.04 4.52 2.52 0.06 1.67 64.66 63.76
HIFS Hingham Instit. for Savings 4.04 7.80 3.89 3.91 0.29 2.08 49.45 45.71
HLFC Home Loan Financial Corp. 4.66 7.97 3.40 4.57 0.35 2.76 56.09 52.73
HMLK Hemlock Federal Financial Corp 3.55 6.95 3.45 3.50 0.35 2.20 57.27 52.96
HMNF HMN Financial Inc. 2.68 7.10 4.49 2.60 0.18 1.67 58.83 55.91
HOMF Home Federal Bancorp 3.65 7.87 4.40 3.48 0.83 2.19 51.92 40.42
HPBC Home Port Bancorp Inc. 4.62 8.06 3.60 4.46 0.44 2.15 43.88 38.30
HRBF Harbor Federal Bancorp Inc. 3.02 7.40 4.44 2.96 0.18 1.86 59.41 56.98
HRZB Horizon Financial Corp. 3.68 7.70 4.19 3.51 0.30 1.42 37.32 31.92
HTHR Hawthorne Financial Corp. 3.87 8.89 5.14 3.75 0.41 2.43 60.61 56.34
HWEN Home Financial Bancorp 4.50 8.70 4.35 4.34 0.35 3.29 70.01 67.62
HZFS Horizon Financial Svcs Corp. 3.20 7.58 4.50 3.08 0.51 2.28 63.19 57.12
IBSF IBS Financial Corp. 3.12 7.00 3.96 3.04 0.12 1.91 60.61 59.05
ICBC Independence Comm. Bank Corp. NA NA NA NA NA NA NA NA
IFSB Independence Federal Svgs Bank 2.50 7.16 4.78 2.39 1.10 3.05 83.52 75.91
INBI Industrial Bancorp Inc. 3.99 8.05 4.13 3.92 0.15 1.75 43.05 40.85
IPSW Ipswich Savings Bank 3.51 7.15 3.80 3.35 0.51 2.28 59.64 53.48
ITLA ITLA Capital Corp. 4.90 9.99 5.13 4.86 0.24 2.15 41.04 38.15
IWBK InterWest Bancorp Inc. 3.23 7.57 4.54 3.04 0.61 2.24 59.63 51.54
JOAC Joachim Bancorp Inc. 4.22 7.19 3.06 4.12 0.14 2.95 69.75 68.74
JSB JSB Financial Inc. 4.71 7.04 2.58 4.46 0.28 1.12 37.57 33.68
JSBA Jefferson Savings Bancorp 3.02 7.54 4.62 2.93 0.19 1.90 56.45 53.65
JXSB Jacksonville Savings Bk (MHC) 3.56 7.62 4.31 3.31 0.43 2.88 77.07 74.11
JXVL Jacksonville Bancorp Inc. 3.88 7.79 4.00 3.79 0.58 2.25 53.83 46.75
KFBI Klamath First Bancorp 3.35 7.06 3.85 3.22 0.21 1.83 49.77 46.51
KNK Kankakee Bancorp Inc. 3.20 7.17 4.12 3.05 0.50 2.39 65.16 59.43
KSAV KS Bancorp Inc. 3.86 7.80 4.12 3.68 0.11 2.01 52.79 51.36
KSBK KSB Bancorp Inc. 4.49 8.32 3.97 4.36 0.77 3.15 60.51 53.52
KYF Kentucky First Bancorp Inc. 3.48 7.27 3.87 3.40 0.19 1.92 53.56 50.93
LARK Landmark Bancshares Inc. 3.15 7.52 4.43 3.09 0.25 1.65 49.14 44.94
LARL Laurel Capital Group Inc. 3.68 7.42 3.81 3.61 0.34 1.72 43.16 37.84
LFBI Little Falls Bancorp Inc. 2.67 6.78 4.20 2.58 0.07 1.70 60.97 59.93
LFCO Life Financial Corp. 4.10 9.31 5.70 3.61 11.27 5.81 38.7( 152.30)
LFED Leeds Federal Bankshares (MHC) 2.93 7.02 4.16 2.86 0.11 1.08 36.27 33.82
LISB Long Island Bancorp Inc. 2.76 6.92 4.27 2.66 0.42 1.80 57.82 51.07
LO Local Financial Corp. 1.78 7.25 5.53 1.72 0.39 1.27 58.06 48.50
LOGN Logansport Financial Corp. 3.86 7.49 3.79 3.70 0.21 1.48 37.68 34.07
LONF London Financial Corp. 3.73 7.66 3.97 3.69 0.18 2.34 60.61 58.70
LSBI LSB Financial Corp. 3.54 7.79 4.46 3.33 0.38 2.44 65.86 61.95
LSBX Lawrence Savings Bank 3.25 7.22 4.07 3.15 0.36 2.22 63.06 58.82
LVSB Lakeview Financial Corp. 3.45 6.97 3.65 3.32 0.69 2.34 50.34 39.98
LXMO Lexington B&L Financial Corp. 4.00 8.06 4.15 3.90 0.30 2.70 63.02 60.14
MAFB MAF Bancorp Inc. 2.93 7.16 4.38 2.78 0.46 1.47 48.77 40.38
MARN Marion Capital Holdings 4.23 7.69 3.80 3.89 0.44 2.56 52.41 47.03
MASB MASSBANK Corp. 2.90 6.64 3.79 2.85 0.20 1.39 44.48 40.52
MBBC Monterey Bay Bancorp Inc. 2.86 7.15 4.41 2.74 0.36 2.34 68.63 64.49
MBLF MBLA Financial Corp. 2.15 7.04 4.92 2.13 0.00 0.71 33.24 33.11
MBSP Mitchell Bancorp Inc. 5.04 7.72 2.85 4.87 0.01 2.41 49.27 49.18
MCBN Mid-Coast Bancorp Inc. 3.99 8.07 4.31 3.77 0.41 2.97 70.73 67.57
MDBK Medford Bancorp Inc. 3.25 6.95 3.83 3.12 0.25 1.70 47.17 43.02
MECH MECH Financial Inc. 3.72 7.02 3.53 3.49 0.88 2.68 61.63 51.99
METF Metropolitan Financial Corp. 3.47 8.25 4.97 3.28 0.41 2.38 63.51 58.94
MFBC MFB Corp. 3.24 7.54 4.37 3.17 0.20 2.03 60.37 57.93
MFFC Milton Federal Financial Corp. 2.87 7.31 4.53 2.78 0.14 1.95 67.07 65.40
MFLR Mayflower Co-operative Bank 4.00 7.47 3.71 3.76 0.37 2.40 57.37 53.23
MFSL Maryland Federal Bancorp 2.75 7.23 4.59 2.65 0.25 1.60 54.39 50.14
MIFC Mid-Iowa Financial Corp. 2.97 7.27 4.43 2.84 0.92 2.17 57.76 44.05
MIVI Mississippi View Holding Co. 3.91 7.48 3.62 3.85 0.25 2.35 57.68 54.88
</TABLE>
<PAGE>
Page 20 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp 0.59 5.28 (0.31) 31.64 17.38 18.000 14.750 15.980 15.98
HFFC HF Financial Corp. 1.63 1.27 4.31 101.25 19.75 20.000 12.500 12.590 12.59
HFGI Harrington Financial Group 7.33 57.30 27.69 37.25 11.38 13.750 10.500 7.390 7.39
HFNC HFNC Financial Corp. 16.21 27.42 (3.53) 208.99 13.19 19.875 13.125 9.830 9.83
HFSA Hardin Bancorp Inc. 17.22 12.42 9.52 15.96 19.38 19.375 13.500 16.370 16.37
HFWA Heritage Financial Corp. NA NA NA 145.23 15.25 NA NA 9.530 9.53
HHFC Harvest Home Financial Corp. 9.36 2.75 4.14 13.37 15.00 15.750 10.250 11.570 11.57
HIFS Hingham Instit. for Savings 12.66 13.92 5.80 45.62 37.00 37.000 18.000 16.840 16.84
HLFC Home Loan Financial Corp. 38.71 14.41 2.73 34.29 15.75 15.750 15.250 13.820 13.82
HMLK Hemlock Federal Financial Corp 16.13 51.73 1.97 34.60 19.00 19.000 12.500 15.460 15.46
HMNF HMN Financial Inc. 32.39 33.89 28.25 106.36 20.00 21.667 12.667 13.67 12.71
HOMF Home Federal Bancorp 6.26 3.45 2.51 158.94 29.25 32.750 16.667 12.650 12.31
HPBC Home Port Bancorp Inc. 19.29 22.03 15.89 48.12 26.50 27.625 16.500 11.980 11.98
HRBF Harbor Federal Bancorp Inc. 5.32 2.28 0.84 38.10 25.00 25.250 15.500 17.320 17.32
HRZB Horizon Financial Corp. 6.17 8.65 5.96 130.86 18.75 19.250 11.957 11.220 11.22
HTHR Hawthorne Financial Corp. 24.93 35.51 19.88 56.95 19.75 24.000 9.250 14.070 14.07
HWEN Home Financial Bancorp 5.13 3.81 8.87 8.48 8.75 9.750 7.375 8.030 8.03
HZFS Horizon Financial Svcs Corp. 18.30 7.84 4.70 14.30 15.75 16.750 8.500 9.600 9.60
IBSF IBS Financial Corp. 1.63 14.75 0.78 197.99 19.44 21.188 14.250 11.910 11.91
ICBC Independence Comm. Bank Corp. NA NA NA 1,288.03 NA NA NA NA NA
IFSB Independence Federal Svgs Bank 4.49 2.07 2.52 21.78 19.63 19.625 7.500 15.460 13.99
INBI Industrial Bancorp Inc. 12.04 13.13 4.22 94.64 22.50 23.375 12 12.14 12.14
IPSW Ipswich Savings Bank 43.54 53.08 23.92 41.82 16.13 16.500 6.875 5.250 5.25
ITLA ITLA Capital Corp. 24.74 26.16 25.00 166.51 21.25 21.250 14.000 13.360 13.32
IWBK InterWest Bancorp Inc. 18.04 16.52 5.32 391.49 45.13 45.125 27.625 16.790 16.53
JOAC Joachim Bancorp Inc. (2.51) 5.24 (0.15) 12.15 16.00 16.000 14.000 13.700 13.70
JSB JSB Financial Inc. 2.16 19.21 (1.17) 578.78 55.94 55.938 40.000 37.690 37.69
JSBA Jefferson Savings Bancorp (4.25) (7.85) (3.16) 300.66 30.25 30.250 13.875 12.740 10.22
JXSB Jacksonville Savings Bk (MHC) 3.55 1.07 3.46 41.02 23.25 24.750 10.667 9.230 9.23
JXVL Jacksonville Bancorp Inc. 8.59 10.61 9.94 50.73 20.38 23.250 13.250 14.290 14.29
KFBI Klamath First Bancorp 45.39 19.15 64.08 193.79 23.00 24.250 16.500 16.160 14.83
KNK Kankakee Bancorp Inc. 16.68 9.75 19.73 48.99 37.25 37.750 26.625 27.960 23.26
KSAV KS Bancorp Inc. 13.03 16.52 9.68 NA 24.75 25.500 14.813 16.500 16.50
KSBK KSB Bancorp Inc. 10.46 19.77 18.95 23.75 18.00 22.500 9.000 9.560 8.31
KYF Kentucky First Bancorp Inc. (8.01) 0.87 3.03 19.55 14.00 15.000 10.563 11.240 11.24
LARK Landmark Bancshares Inc. 3.34 15.98 0.38 45.18 26.00 27.250 18.750 19.600 19.60
LARL Laurel Capital Group Inc. 3.93 0.06 0.41 46.50 21.75 23.500 13.417 10.540 10.54
LFBI Little Falls Bancorp Inc. 17.16 21.51 2.77 48.31 20.00 20.500 12.750 14.630 13.51
LFCO Life Financial Corp. 145.51 214.25 83.33 137.48 20.00 21.875 10.750 8.940 8.94
LFED Leeds Federal Bankshares (MHC) 6.07 8.29 5.53 102.35 22.25 23.500 11.833 9.520 9.52
LISB Long Island Bancorp Inc. 8.28 4.69 2.59 1,486.93 63.25 65.750 33.000 23.550 23.35
LO Local Financial Corp. (19.93) 0.38 2.61 266.98 NA NA NA NA NA
LOGN Logansport Financial Corp. 12.23 14.88 6.64 21.44 18.13 18.125 12.500 13.310 13.31
LONF London Financial Corp. 1.62 3.80 6.52 7.78 16.75 21.000 14.000 10.230 10.23
LSBI LSB Financial Corp. 14.91 13.36 15.67 28.87 30.48 31.429 18.141 20.170 20.17
LSBX Lawrence Savings Bank 3.81 10.00 1.65 66.37 17.13 19.313 9.125 9.160 9.16
LVSB Lakeview Financial Corp. 0.19 21.27 (0.18) 111.43 25.00 26.000 13.625 11.750 9.64
LXMO Lexington B&L Financial Corp. 58.19 40.16 79.63 17.79 16.38 17.875 14.125 15.190 14.25
MAFB MAF Bancorp Inc. 8.49 11.36 2.53 571.14 38.06 39.250 24.833 18.080 16.04
MARN Marion Capital Holdings 10.39 8.48 10.05 49.38 28.13 29.000 21.250 22.300 21.83
MASB MASSBANK Corp. 3.14 10.07 1.86 179.34 50.13 51.250 29.906 29.850 29.44
MBBC Monterey Bay Bancorp Inc. (4.55) 15.59 2.98 67.68 25.63 26.750 15.500 15.840 14.81
MBLF MBLA Financial Corp. (1.11) 14.58 15.53 30.08 27.38 30.625 20.250 22.380 22.38
MBSP Mitchell Bancorp Inc. 8.96 2.90 16.93 15.59 16.75 18 15.25 15.6 15.60
MCBN Mid-Coast Bancorp Inc. 6.94 3.19 7.09 8.54 13.83 13.833 6.167 7.500 7.50
MDBK Medford Bancorp Inc. 6.29 1.38 2.88 188.98 44.00 44.000 24.750 22.790 21.54
MECH MECH Financial Inc. 19.97 14.09 7.32 152.86 30.50 30.500 17.000 17.140 17.14
METF Metropolitan Financial Corp. 22.63 10.92 22.70 105.77 17.00 18.875 5.375 5.420 5.01
MFBC MFB Corp. 24.05 28.42 7.78 44.60 27.25 30.375 18.750 20.710 20.71
MFFC Milton Federal Financial Corp. 26.83 32.56 11.67 36.07 15.88 17.000 13.250 12.490 12.49
MFLR Mayflower Co-operative Bank 9.51 4.22 2.79 21.36 25.00 26.750 15.750 14.310 14.09
MFSL Maryland Federal Bancorp 5.63 (0.26) 5.41 255.16 35.94 35.938 17.188 16.070 15.92
MIFC Mid-Iowa Financial Corp. 19.00 10.05 12.40 20.47 12.25 12.625 7.313 7.550 7.54
MIVI Mississippi View Holding Co. (2.43) 1.39 (2.62) 14.80 18.50 19.750 12.000 16.850 16.85
</TABLE>
<PAGE>
Page 21 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 3.58 7.79 4.36 3.44 0.03 2.03 59.51 59.11
MRKF Market Financial Corp. 3.95 6.87 2.96 3.91 0.01 2.22 56.69 56.55
MSBF MSB Financial Inc. 4.77 8.33 3.74 4.59 0.46 2.79 55.44 50.92
MSBK Mutual Savings Bank FSB 1.79 6.47 4.73 1.73 0.45 2.17 99.71 99.64
MWBI Midwest Bancshares Inc. 2.85 7.38 4.64 2.74 0.22 1.75 58.92 55.57
MWBX MetroWest Bank 4.09 7.75 3.84 3.91 0.37 2.62 59.75 55.92
MYST Mystic Financial Inc. NA NA NA NA NA NA NA NA
NASB NASB Financial Inc. 3.62 8.41 4.88 3.53 0.82 2.04 47.31 35.08
NBCP Niagara Bancorp Inc. (MHC) NA NA NA NA NA NA NA NA
NBN Northeast Bancorp 4.03 8.28 4.38 3.89 0.63 3.15 67.26 61.94
NBSI North Bancshares Inc. 3.13 7.23 4.16 3.07 0.20 2.58 78.78 77.39
NEIB Northeast Indiana Bancorp 3.58 7.96 4.43 3.52 0.33 1.73 44.96 39.82
NEP Northeast PA Financial Corp. NA NA NA NA NA NA NA NA
NHTB New Hampshire Thrift Bncshrs 3.85 7.70 4.12 3.58 0.71 2.79 62.70 55.28
NMSB NewMil Bancorp Inc. 3.86 7.30 3.56 3.74 0.45 2.61 65.61 61.50
NSLB NS&L Bancorp Inc. 3.29 6.71 3.52 3.20 0.50 2.56 69.29 64.52
NSSY NSS Bancorp Inc. 3.12 7.11 4.09 3.02 0.60 2.45 66.46 59.76
NTBK Net.B@nk Inc. 3.15 6.88 NA 3.11 0.29 8.76 257.99 272.51
NTMG Nutmeg Federal S&LA 4.18 7.20 3.25 3.95 1.29 4.02 74.95 66.79
NWEQ Northwest Equity Corp. 3.83 8.01 4.39 3.62 0.44 2.34 55.95 50.54
NWSB Northwest Bancorp Inc. (MHC) 3.77 7.82 4.22 3.60 0.31 2.23 54.91 51.05
OCFC Ocean Financial Corp. 3.07 7.00 4.02 2.98 0.17 1.61 51.31 48.52
OCN Ocwen Financial Corp. 4.66 9.33 5.41 3.92 1.35 4.23 88.49 84.53
OFCP Ottawa Financial Corp. 3.32 7.46 4.37 3.08 0.47 2.20 58.21 51.85
OHSL OHSL Financial Corp. 3.12 7.64 4.59 3.05 0.16 1.97 61.58 59.51
OSFS Ohio State Financial Services 3.85 7.10 3.35 3.76 0.12 2.39 61.92 60.72
OTFC Oregon Trail Financial Corp. NA NA NA NA NA NA NA NA
PBCI Pamrapo Bancorp Inc. 4.70 7.69 3.25 4.44 0.37 2.71 54.61 50.86
PBCT People's Bank (MHC) 3.50 6.66 3.45 3.21 2.54 4.21 71.79 49.46
PBHC Pathfinder Bancorp Inc. (MHC) 4.11 7.39 3.63 3.76 0.49 3.14 70.14 66.28
PBKB People's Bancshares Inc. 2.88 7.17 4.40 2.77 0.28 2.45 78.37 76.22
PBOC PBOC Holdings Inc. 1.84 6.85 5.08 1.77 0.12 1.68 84.43 83.40
PCBC Perry County Financial Corp. 2.78 6.88 4.13 2.74 0.04 1.09 39.16 38.23
PDB Piedmont Bancorp Inc. 3.98 7.89 4.01 3.88 0.26 2.13 54.02 50.88
PEDE Great Pee Dee Bancorp NA NA NA NA NA NA NA NA
PEEK Peekskill Financial Corp. 3.64 6.75 3.16 3.60 0.12 1.83 49.17 47.44
PERM Permanent Bancorp Inc. 2.72 7.15 4.54 2.62 0.43 1.99 64.17 58.27
PFDC Peoples Bancorp 3.73 7.74 4.06 3.68 0.24 1.48 37.31 33.25
PFED Park Bancorp Inc. 3.53 7.08 3.68 3.40 0.12 2.15 68.24 67.14
PFFB PFF Bancorp Inc. 2.82 7.17 4.44 2.73 0.47 1.95 59.85 52.87
PFFC Peoples Financial Corp. 3.68 7.29 3.71 3.58 0.03 2.52 69.78 69.50
PFNC Progress Financial Corp. 4.63 8.26 3.94 4.32 1.31 4.15 71.93 63.42
PFSB PennFed Financial Services Inc 2.48 7.10 4.71 2.39 0.16 1.27 42.64 38.89
PFSL Pocahontas Bancorp Inc. 2.08 7.04 5.01 2.03 0.33 1.40 59.19 52.49
PHBK Peoples Heritage Finl Group 4.54 7.66 3.48 4.17 1.00 3.23 59.15 49.39
PHFC Pittsburgh Home Financial Corp 2.82 7.46 4.74 2.72 0.20 1.73 58.68 55.70
PHSB Peoples Home Savings Bk (MHC) 3.57 7.21 3.75 3.45 0.37 2.78 72.73 69.81
PLSK Pulaski Savings Bank (MHC) 3.13 7.17 4.13 3.04 0.12 2.06 64.86 63.48
PRBC Prestige Bancorp Inc. 3.13 7.01 3.97 3.04 0.27 2.39 72.19 69.73
PROV Provident Financial Holdings 3.15 7.15 4.13 3.03 0.68 2.83 76.73 71.53
PSBK Progressive Bank Inc. 4.08 7.79 3.91 3.87 0.37 2.41 53.03 48.51
PSFC Peoples-Sidney Financial Corp. 3.96 7.74 3.85 3.89 0.06 2.00 50.72 49.95
PSFI PS Financial Inc. 4.81 7.46 2.75 4.71 0.09 1.46 30.46 29.20
PTRS Potters Financial Corp. 3.35 7.20 3.97 3.23 0.30 2.45 69.41 66.61
PULB Pulaski Bank, Svgs Bank (MHC) 3.78 7.61 3.92 3.70 0.31 2.44 60.93 57.65
PULS Pulse Bancorp 2.67 6.99 4.38 2.61 0.08 1.04 38.65 36.84
PVFC PVF Capital Corp. 3.89 8.70 4.84 3.86 0.30 2.17 52.14 48.38
PVSA Parkvale Financial Corp. 2.98 7.22 4.30 2.92 0.24 1.43 44.79 40.27
PWBK Pennwood Bancorp Inc. 4.43 7.93 3.75 4.18 0.30 2.88 62.31 59.65
QCBC Quaker City Bancorp Inc. 3.06 7.64 4.63 3.01 0.35 1.85 52.20 46.70
QCFB QCF Bancorp Inc. 4.20 7.22 3.11 4.12 0.38 1.82 40.34 34.77
QCSB Queens County Bancorp Inc. 4.40 8.18 3.94 4.23 0.13 1.81 41.28 39.43
RARB Raritan Bancorp Inc. 3.48 7.17 3.85 3.32 0.27 1.96 53.75 49.95
RCBK Richmond County Financial Corp NA NA NA NA NA NA NA NA
</TABLE>
<PAGE>
Page 21 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 16.56 17.61 7.65 21.08 12.88 14.000 11.000 12.050 12.05
MRKF Market Financial Corp. 2.51 19.06 0.76 18.37 17.25 17.500 12.250 15.250 15.25
MSBF MSB Financial Inc. 5.00 10.03 3.84 20.90 16.63 19.500 10.375 10.780 10.78
MSBK Mutual Savings Bank FSB (0.89) 19.85 1.19 50.41 12.25 14.625 6.500 7.760 7.76
MWBI Midwest Bancshares Inc. 14.14 10.41 1.00 16.35 16.00 19.500 9.333 10.630 10.63
MWBX MetroWest Bank 16.52 10.55 17.02 111.10 7.78 9.500 4.625 3.280 3.28
MYST Mystic Financial Inc. NA NA NA 41.34 17.69 NA NA 13.200 13.20
NASB NASB Financial Inc. (0.62) (2.16) 6.96 146.70 53.13 56.000 33.875 27.830 27.02
NBCP Niagara Bancorp Inc. (MHC) NA NA NA 435.19 NA NA NA NA NA
NBN Northeast Bancorp 25.49 36.72 12.48 39.38 18.13 19.500 9.167 9.720 8.83
NBSI North Bancshares Inc. (1.28) 2.26 1.84 20.80 17.50 18.833 12.750 10.600 10.60
NEIB Northeast Indiana Bancorp 15.87 16.11 30.75 35.98 22.63 22.750 13.250 15.830 15.83
NEP Northeast PA Financial Corp. NA NA NA 89.99 NA NA NA NA NA
NHTB New Hampshire Thrift Bncshrs 2.41 (1.46) 2.99 40.77 21.50 22.750 11.750 12.410 10.78
NMSB NewMil Bancorp Inc. 16.80 3.10 7.59 52.31 13.75 14.500 8.875 8.590 8.59
NSLB NS&L Bancorp Inc. 5.26 13.61 12.03 12.07 17.59 19.500 16.250 16.750 16.63
NSSY NSS Bancorp Inc. 8.31 (1.01) 8.18 102.06 47.25 47.500 23.000 22.860 22.25
NTBK Net.B@nk Inc. NM 0.00 NM 152.11 24.75 24.750 8.750 5.550 5.55
NTMG Nutmeg Federal S&LA 19.11 11.14 18.22 10.88 11.00 11.250 5.250 6.580 6.58
NWEQ Northwest Equity Corp. 3.15 3.46 0.85 16.80 20.75 20.750 11.875 14.820 14.82
NWSB Northwest Bancorp Inc. (MHC) 20.63 19.10 22.32 743.55 16.81 17.188 7.125 4.550 4.07
OCFC Ocean Financial Corp. 9.41 18.39 4.39 300.97 18.50 19.188 13.813 13.900 13.9
OCN Ocwen Financial Corp. 29.13 8.57 (8.22) 1,506.37 27.75 30.375 13.000 7.370 6.98
OFCP Ottawa Financial Corp. 6.58 7.22 4.39 151.65 29.00 34.000 18.636 14.550 11.93
OHSL OHSL Financial Corp. 9.30 2.96 8.19 41.72 16.13 18.375 11.313 10.920 10.92
OSFS Ohio State Financial Services 12.17 (2.73) (5.90) 10.15 15.50 15.500 15.500 16.470 16.47
OTFC Oregon Trail Financial Corp. NA NA NA 71.49 17.38 NA NA 15.340 15.34
PBCI Pamrapo Bancorp Inc. 3.83 4.91 2.73 80.67 28.75 28.750 18.500 17.200 17.10
PBCT People's Bank (MHC) 21.38 11.92 22.36 2,483.21 37.97 38.750 19.000 13.180 11.29
PBHC Pathfinder Bancorp Inc. (MHC) 3.05 15.12 (2.47) 61.23 23.50 24.625 7.250 8.350 7.07
PBKB People's Bancshares Inc. 57.08 88.15 17.62 84.37 25.00 26.000 11.625 9.560 9.23
PBOC PBOC Holdings Inc. 26.61 33.14 (7.63) 288.94 NA NA NA 9.870 9.87
PCBC Perry County Financial Corp. 7.99 23.17 0.51 19.35 23.38 25.000 18.750 19.690 19.69
PDB Piedmont Bancorp Inc. 12.07 15.23 7.82 26.82 10.75 11.625 10.000 7.770 7.77
PEDE Great Pee Dee Bancorp NA NA NA 34.13 15.75 NA NA 14.19 14.19
PEEK Peekskill Financial Corp. 7.26 7.11 3.63 53.17 17.38 18.250 13.375 14.920 14.92
PERM Permanent Bancorp Inc. 1.66 2.40 0.69 67.44 15.56 15.563 10.188 10.340 10.22
PFDC Peoples Bancorp 6.15 9.67 5.56 76.84 23.00 25.000 14.500 13.430 13.43
PFED Park Bancorp Inc. 10.88 9.40 8.49 42.57 18.75 19.750 14.250 16.850 16.85
PFFB PFF Bancorp Inc. 10.91 0.36 1.74 324.91 20.63 21.500 13.625 14.900 14.75
PFFC Peoples Financial Corp. (8.33) 26.74 0.75 18.85 16.25 19.000 12.750 11.110 11.11
PFNC Progress Financial Corp. 16.38 20.38 10.85 95.33 17.88 18.500 7.679 6.370 5.65
PFSB PennFed Financial Services Inc 17.30 13.57 15.06 163.48 18.13 19.000 11.125 11.780 10.21
PFSL Pocahontas Bancorp Inc. 7.35 20.10 45.16 65.45 11.12 11.430 4.410 NA NA
PHBK Peoples Heritage Finl Group 33.92 38.89 22.44 2,102.16 24.13 24.125 13.750 8.820 6.71
PHFC Pittsburgh Home Financial Corp 42.75 26.35 5.98 34.71 18.63 20.813 14.000 12.760 12.61
PHSB Peoples Home Savings Bk (MHC) 8.77 2.67 (1.59) 55.55 19.75 20.000 13.625 10.330 10.33
PLSK Pulaski Savings Bank (MHC) (0.90) 2.37 8.88 37.68 18.38 24.500 11.500 10.440 10.44
PRBC Prestige Bancorp Inc. 26.61 26.03 7.21 20.52 17.42 17.418 13.478 15.000 15.00
PROV Provident Financial Holdings 25.60 27.11 12.09 104.47 23.50 24.250 14.125 18.160 18.16
PSBK Progressive Bank Inc. 2.10 (4.06) 0.56 159.53 42.38 44.500 23.375 20.680 18.87
PSFC Peoples-Sidney Financial Corp. 12.58 8.06 (3.40) 43.18 18.00 18.625 12.563 15.980 15.98
PSFI PS Financial Inc. 11.59 16.94 (1.79) 27.07 14.06 22.375 12.875 11.250 11.25
PTRS Potters Financial Corp. 8.26 18.60 4.51 18.13 19.50 22.250 9.500 11.400 11.40
PULB Pulaski Bank, Svgs Bank (MHC) 3.26 5.89 2.96 95.29 49.00 51.000 17.375 11.710 11.71
PULS Pulse Bancorp 4.67 10.55 4.50 86.20 26.63 29.750 17.875 14.470 14.47
PVFC PVF Capital Corp. 17.59 11.89 21.29 69.16 24.00 24.000 15.455 11.340 11.34
PVSA Parkvale Financial Corp. 8.52 17.15 6.23 162.23 31.25 34.250 20.800 16.020 15.94
PWBK Pennwood Bancorp Inc. (3.19) 36.55 (2.25) 10.28 16.13 16.500 10.313 12.590 12.59
QCBC Quaker City Bancorp Inc. 10.14 5.28 4.76 107.12 22.25 24.563 14.400 16.140 16.14
QCFB QCF Bancorp Inc. 2.98 10.01 0.28 41.46 28.25 29.750 19.000 19.980 19.98
QCSB Queens County Bancorp Inc. 18.14 19.63 2.49 664.03 44.00 44.000 23.778 13.110 13.11
RARB Raritan Bancorp Inc. 11.64 13.90 4.66 69.24 27.00 29.250 16.333 13.220 13.05
RCBK Richmond County Financial Corp NA NA NA 505.35 19.19 NA NA 12.210 12.16
</TABLE>
<PAGE>
Page 22 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. 3.32 7.15 4.00 3.15 0.75 2.54 62.04 52.99
RELI Reliance Bancshares Inc. 5.04 7.46 2.62 4.84 0.05 3.28 67.11 66.79
RELY Reliance Bancorp Inc. 3.35 7.12 3.96 3.16 0.25 1.81 47.25 43.08
RIVR River Valley Bancorp 3.94 7.41 3.62 3.79 0.58 2.83 64.39 58.92
ROSE TR Financial Corp. 2.61 7.17 4.61 2.56 0.19 1.26 45.54 41.49
RSLN Roslyn Bancorp Inc. 3.05 7.12 4.13 2.99 0.22 1.30 40.14 35.65
RVSB Riverview Bancorp Inc. 4.61 8.06 3.73 4.33 0.88 2.87 52.51 42.88
SBAN SouthBanc Shares Inc. 3.57 7.40 4.00 3.41 0.87 2.75 64.99 56.06
SBFL SB of the Finger Lakes (MHC) 3.07 7.19 4.22 2.98 0.25 2.61 77.89 76.01
SBOS Boston Bancorp (The) 2.72 6.92 4.27 2.65 0.16 1.51 56.25 53.67
SCBS Southern Community Bancshares 4.08 7.44 3.40 4.05 0.26 2.49 57.90 55.18
SCCB S. Carolina Community Bancshrs 4.17 7.74 3.65 4.09 0.26 2.72 62.58 60.19
SFED SFS Bancorp Inc. 3.44 7.30 3.94 3.36 0.27 2.52 69.57 67.11
SFFC StateFed Financial Corp. 3.42 7.77 4.54 3.23 0.16 1.44 54.38 52.18
SFIN Statewide Financial Corp. 3.73 7.30 3.68 3.62 0.27 2.53 64.58 61.96
SFSB SuburbFed Financial Corp. 2.76 7.07 4.39 2.69 0.66 2.55 75.96 70.06
SFSL Security First Corp. 4.05 8.30 4.40 3.89 0.26 1.98 47.29 43.73
SGVB SGV Bancorp Inc. 2.69 7.24 4.64 2.60 0.30 2.21 73.27 70.23
SHEN First Shenango Bancorp Inc. 3.23 7.39 4.22 3.17 0.19 1.51 44.13 40.73
SHSB SHS Bancorp Inc. 3.15 7.69 4.60 3.08 0.15 2.01 61.25 59.36
SIB Staten Island Bancorp Inc. 4.39 6.98 2.79 4.19 0.34 1.94 41.09 36.35
SISB SIS Bancorp Inc. 3.72 7.06 3.54 3.52 0.89 2.88 65.33 56.57
SKAN Skaneateles Bancorp Inc. 4.16 7.73 3.80 3.93 0.74 3.49 73.06 67.99
SKBO First Carnegie Deposit (MHC) 2.66 6.74 4.16 2.58 0.06 1.62 61.43 60.60
SMBC Southern Missouri Bancorp Inc. 3.28 7.13 3.91 3.23 0.36 2.21 63.17 59.02
SOBI Sobieski Bancorp Inc. 3.36 7.30 4.08 3.22 0.14 2.34 69.76 68.46
SOPN First Savings Bancorp Inc. 3.92 7.61 3.77 3.84 0.20 1.23 30.58 27.03
SOSA Somerset Savings Bank 4.18 8.25 4.27 3.98 0.21 2.86 59.76 57.63
SPBC St. Paul Bancorp Inc. 2.98 6.96 4.09 2.86 0.87 2.16 60.89 48.99
SRN Southern Banc Co. 2.77 7.05 4.33 2.72 0.11 2.07 71.60 70.43
SSB Scotland Bancorp Inc. 4.45 7.61 3.23 4.38 0.12 2.44 54.43 53.23
SSFC South Street Financial Corp. 3.18 7.10 4.00 3.10 0.07 2.05 64.55 63.71
SSM Stone Street Bancorp Inc. 4.66 7.94 3.40 4.54 0.14 2.25 48.11 46.55
STFR St. Francis Capital Corp. 2.72 7.08 4.57 2.51 0.39 2.05 66.73 61.52
STSA Sterling Financial Corp. 2.75 7.81 5.15 2.66 0.48 2.19 65.35 59.06
SVRN Sovereign Bancorp Inc. 2.75 7.36 4.72 2.64 0.27 1.48 47.84 42.50
SWBI Southwest Bancshares Inc. 3.38 7.39 4.23 3.15 0.19 1.69 56.08 53.40
SWCB Sandwich Bancorp Inc. 3.65 7.21 3.72 3.49 0.47 2.40 58.14 52.46
SZB SouthFirst Bancshares Inc. 3.68 7.38 4.03 3.35 1.15 3.48 77.38 69.64
THR Three Rivers Financial Corp. 3.68 7.53 3.97 3.56 0.52 2.84 69.94 65.53
THRD TF Financial Corp. 3.07 6.78 3.80 2.98 0.20 2.18 63.31 60.86
TPNZ Tappan Zee Financial Inc. 3.79 7.48 3.76 3.72 0.13 2.40 62.16 60.87
TRIC Tri-County Bancorp Inc. 3.19 7.37 4.26 3.12 0.16 1.86 56.78 54.55
TSBK Timberland Bancorp Inc. 4.77 8.31 3.73 4.59 0.46 2.47 49.04 43.97
TSBS Peoples Bancorp Inc. 3.67 6.94 3.44 3.49 0.42 2.23 53.52 47.96
TSH Teche Holding Co. 3.41 7.56 4.24 3.32 0.77 2.62 64.71 56.57
TWIN Twin City Bancorp 3.99 7.80 4.00 3.81 0.37 2.57 61.87 58.18
UBMT United Financial Corp. 3.73 7.37 3.77 3.60 1.05 2.41 51.34 37.17
UCBC Union Community Bancorp NA NA NA NA NA NA NA NA
UFRM United Federal Savings Bank 3.93 8.28 4.61 3.68 0.92 3.44 73.93 67.42
UPFC United PanAm Financial Corp. 6.07 10.52 4.92 5.59 0.28 11.93 202.37 207.47
USAB USABancshares Inc. 4.53 9.15 4.78 4.38 0.53 3.48 69.55 65.85
UTBI United Tennessee Bankshares NA NA NA NA NA NA NA NA
WAMU Washington Mutual Inc. 2.98 7.41 4.55 2.86 0.82 1.90 49.70 35.31
WAYN Wayne Savings Bancshares (MHC) 3.30 7.56 4.36 3.21 0.24 2.42 70.07 67.80
WBST Webster Financial Corp. 3.04 6.96 4.07 2.89 0.52 1.98 54.53 46.40
WCBI Westco Bancorp Inc. 3.62 7.57 4.06 3.52 0.25 1.54 41.11 36.85
WCFB Webster City Federal SB (MHC) 3.62 7.12 3.58 3.55 0.21 1.48 39.22 35.54
WEFC Wells Financial Corp. 3.40 7.62 4.26 3.36 0.60 2.04 51.56 42.86
WEHO Westwood Homestead Fin. Corp. 3.62 7.83 4.27 3.57 0.10 2.15 58.77 57.62
WES Westcorp 3.47 7.39 4.46 2.93 3.39 6.67 105.68 112.23
WFI Winton Financial Corp. 3.15 7.97 4.89 3.08 0.13 1.87 57.64 55.90
WFSL Washington Federal Inc. 3.71 8.19 4.58 3.61 0.09 0.75 18.40 16.45
WHGB WHG Bancshares Corp. 3.71 7.18 3.63 3.55 0.13 2.42 65.80 64.55
</TABLE>
<PAGE>
Page 22 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. 13.75 17.84 7.76 150.07 20.00 21.125 12.375 12.000 11.96
RELI Reliance Bancshares Inc. (5.68) (0.26) (3.20) 20.30 8.88 10.125 7.125 9.310 9.31
RELY Reliance Bancorp Inc. 13.13 13.35 13.41 383.91 38.75 38.750 22.000 20.130 13.89
RIVR River Valley Bancorp (3.24) (0.04) (4.25) 22.32 19.75 19.750 13.625 15.340 15.14
ROSE TR Financial Corp. 17.66 21.4 -11.22 738.47 34.75 35.5 16.688 14.87 14.87
RSLN Roslyn Bancorp Inc. 30.07 67.16 16.40 925.10 23.50 24.500 15.875 14.510 14.44
RVSB Riverview Bancorp Inc. 21.74 7.21 6.14 104.62 16.94 18 7.098 9.93 9.6
SBAN SouthBanc Shares Inc. 56.86 19.39 14.46 84.44 22.44 23.408 8.460 NA NA
SBFL SB of the Finger Lakes (MHC) 17.87 31.32 17.81 70.06 19.50 24.750 7.375 6.100 6.10
SBOS Boston Bancorp (The) (15.43) (13.03) 0.65 NA 41.75 44.000 28.750 40.290 40.29
SCBS Southern Community Bancshares 3.34 18.56 6.19 19.62 17.50 20.750 13.500 10.100 10.10
SCCB S. Carolina Community Bancshrs (0.23) (0.31) 7.10 12.61 21.63 25.250 17.500 16.280 16.28
SFED SFS Bancorp Inc. 3.90 15.56 4.72 26.59 24.50 27.25 16 17.94 17.94
SFFC StateFed Financial Corp. 5.03 2.79 6.67 22.47 14.63 14.750 9.000 10.160 10.16
SFIN Statewide Financial Corp. (1.01) 0.65 (1.45) 99.32 23.00 24.125 14.750 14.590 14.57
SFSB SuburbFed Financial Corp. 9.48 17.38 (1.54) 60.02 47.25 50.000 22.250 23.640 23.58
SFSL Security First Corp. 7.99 10.42 14.15 194.54 22.50 22.500 12.000 8.560 8.44
SGVB SGV Bancorp Inc. 0.32 7.21 2.90 41.63 17.75 19.375 11.375 13.490 13.31
SHEN First Shenango Bancorp Inc. 0.56 (0.11) 2.26 84.83 42.13 43.875 21.750 23.340 23.34
SHSB SHS Bancorp Inc. 6.76 2.81 1.45 14.55 17.00 18.000 14.750 14.930 14.93
SIB Staten Island Bancorp Inc. 44.53 14.30 0.14 978.79 20.38 21.125 18.813 15.510 15.11
SISB SIS Bancorp Inc. 8.35 9.98 7.81 288.38 40.25 40.500 23.375 18.300 18.30
SKAN Skaneateles Bancorp Inc. 6.70 3.44 7.22 25.20 19.56 22.250 12.250 12.480 12.16
SKBO First Carnegie Deposit (MHC) 2.25 3.50 (4.82) 44.85 18.75 19.875 11.625 10.740 10.74
SMBC Southern Missouri Bancorp Inc. (4.98) 12.10 (13.18) 34.81 21.50 23.250 15.500 16.450 16.45
SOBI Sobieski Bancorp Inc. 13.62 23.75 2.09 15.25 20.25 24.250 14.500 17.840 17.84
SOPN First Savings Bancorp Inc. 10.58 8.66 5.36 89.96 25.50 26.000 19.375 18.610 18.61
SOSA Somerset Savings Bank 2.08 5.48 1.29 86.24 5.16 5.938 2.250 2.310 2.31
SPBC St. Paul Bancorp Inc. 2.20 13.29 (4.85) 868.50 25.38 28.500 17.583 12.480 12.43
SRN Southern Banc Co. 0.71 11.55 (0.34) 19.84 16.75 19.125 14.250 14.950 14.84
SSB Scotland Bancorp Inc. (11.09) (10.09) 6.30 16.98 9.75 19.250 9.750 7.910 7.91
SSFC South Street Financial Corp. (9.14) (0.37) 4.15 45.59 12.00 20.000 11.750 8.230 8.23
SSM Stone Street Bancorp Inc. 5.19 12.52 2.23 36.83 20.63 27.250 19.250 16.520 16.52
STFR St. Francis Capital Corp. 4.36 12.32 6.93 218.41 45.50 50.750 29.000 25.250 22.56
STSA Sterling Financial Corp. 21.26 14.33 9.67 194.65 26.00 26.000 15.250 13.930 12.98
SVRN Sovereign Bancorp Inc. 75.96 62.60 61.20 2,340.76 18.188 18.938 9.479 7.020 6.02
SWBI Southwest Bancshares Inc. 5.76 2.96 10.50 87.93 32.63 33.000 18.750 16.380 16.38
SWCB Sandwich Bancorp Inc. 10.79 10.03 10.89 122.11 63.25 64.500 27.250 21.870 21.18
SZB SouthFirst Bancshares Inc. 74.66 54.25 94.46 19.15 22.00 22.750 13.875 16.750 16.34
THR Three Rivers Financial Corp. 7.57 5.44 2.05 16.03 20.88 23.500 13.750 16.080 16.03
THRD TF Financial Corp. (0.76) (24.16) (2.23) 83.60 28.00 30.000 16.625 17.630 14.85
TPNZ Tappan Zee Financial Inc. 6.16 4.58 6.78 29.56 20.25 22.625 14.000 14.750 14.75
TRIC Tri-County Bancorp Inc. 3.82 17.18 (8.15) 17.22 13.50 15.000 9.250 12.030 12.03
TSBK Timberland Bancorp Inc. 28.06 0.31 (1.21) 101.67 17.88 18.500 14.500 13.790 13.79
TSBS Peoples Bancorp Inc. 41.91 8.54 5.28 362.37 11.41 11.832 4.707 NA NA
TSH Teche Holding Co. 3.48 3.71 2.05 67.49 22.38 23.500 15.500 16.380 16.38
TWIN Twin City Bancorp 5.85 1.83 7.59 17.18 14.63 15.500 12.000 11.170 11.17
UBMT United Financial Corp. 186.21 143.08 149.13 47.34 27.00 28.250 25.625 17.730 17.15
UCBC Union Community Bancorp NA NA NA 45.25 15.69 NA NA 14.220 14.22
UFRM United Federal Savings Bank 13.13 30.06 11.24 58.74 18.50 21 9.5 7.02 7.02
UPFC United PanAm Financial Corp. 64.69 70.88 46.61 174.78 NA NA NA 1.190 1.15
USAB USABancshares Inc. 160.90 230.30 166.43 21.77 14.00 14.000 6.563 8.090 8.04
UTBI United Tennessee Bankshares NA NA NA 21.64 14.75 NA NA 13.920 13.92
WAMU Washington Mutual Inc. 15.96 8.34 (2.18) 17,854.59 47.81 49.959 30.250 14.370 13.46
WAYN Wayne Savings Bancshares (MHC) 3.00 (0.82) 2.92 69.55 26.14 30.000 15.455 9.840 9.84
WBST Webster Financial Corp. 24.71 1.40 0.69 885.74 34.75 35.000 17.625 14.590 12.86
WCBI Westco Bancorp Inc. 2.97 6.79 2.91 75.10 28.75 29.375 22.000 20.010 20.01
WCFB Webster City Federal SB (MHC) 0.82 1.90 (1.56) 39.86 20.00 22.000 13.750 10.680 10.68
WEFC Wells Financial Corp. 3.74 (1.34) 1.16 40.66 19.25 19.625 14.000 15.440 15.44
WEHO Westwood Homestead Fin. Corp. (0.06) 26.01 5.57 35.54 14.38 18.125 12.500 10.500 10.50
WES Westcorp 11.95 5.27 13.14 322.44 16.75 23.500 13.250 12.650 12.62
WFI Winton Financial Corp. 12.27 12.92 9.54 66.24 14.72 14.875 6.000 6.270 6.16
WFSL Washington Federal Inc. (2.68) 0.24 3.96 1,506.63 27.75 30.285 20.455 14.420 13.34
WHGB WHG Bancshares Corp. 20.32 (1.47) 17.67 22.22 17.88 19.000 13.750 14.370 14.37
</TABLE>
<PAGE>
Page 23 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 2.95 7.37 4.54 2.83 0.16 2.26 72.92 71.36
WRNB Warren Bancorp Inc. 4.99 7.96 3.18 4.79 0.25 2.61 51.40 48.88
WSB Washington Savings Bank, FSB 2.49 8.02 5.63 2.38 0.23 1.69 70.47 67.60
WSBI Warwick Community Bancorp NA NA NA NA NA NA NA NA
WSFS WSFS Financial Corp. 2.88 7.38 4.72 2.66 1.38 2.42 57.80 35.93
WSTR WesterFed Financial Corp. 3.47 7.36 4.16 3.20 0.70 2.66 64.49 56.69
WVFC WVS Financial Corp. 3.63 7.63 4.05 3.59 0.13 1.70 45.84 43.91
WYNE Wayne Bancorp Inc. 3.52 7.33 3.91 3.41 0.25 2.39 65.66 63.20
YFCB Yonkers Financial Corp. 3.79 7.47 3.76 3.71 0.29 2.26 56.19 52.76
YFED York Financial Corp. 3.32 7.55 4.41 3.14 0.45 2.22 62.11 56.71
-------------------------------------------------------------------------------------------------------
Average 3.45 7.47 4.15 3.31 0.47 2.32 60.66 55.37
</TABLE>
<PAGE>
Page 23 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. (8.66) (10.11) 7.45 59.98 26.38 29.250 21.000 22.780 21.31
WRNB Warren Bancorp Inc. 3.12 10.28 2.32 92.45 12.63 12.625 7.500 5.370 5.37
WSB Washington Savings Bank, FSB 3.55 (6.07) 5.27 31.94 8.25 9.500 4.875 5.230 5.23
WSBI Warwick Community Bancorp NA NA NA 110.25 16.00 NA NA 12.940 12.94
WSFS WSFS Financial Corp. 3.82 (13.85) 2.11 275.54 21.50 21.875 10.625 7.310 7.27
WSTR WesterFed Financial Corp. 9.73 12.29 1.60 138.93 26.44 27.000 17.625 19.470 15.61
WVFC WVS Financial Corp. 6.40 6.99 (1.78) 66.91 19.03 19.500 11.750 9.050 9.05
WYNE Wayne Bancorp Inc. 10.83 22.26 12.51 62.41 31.00 31.000 16.000 17.150 17.15
YFCB Yonkers Financial Corp. 20.91 75.92 15.56 58.43 19.75 22.000 14.375 15.030 15.03
YFED York Financial Corp. 5.22 1.12 8.15 193.55 25.75 27.250 14.200 11.970 11.97
- ---------------------------------------------------------------------------------------------------------------------------
Average 14.04 15.49 9.84 276.81 23.41 25.09 14.82 14.10 13.65
</TABLE>
<PAGE>
Page 24 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
-------------------------------------------------------------------------
Net Non- Non-
Interest Interest Interest interest interest
Net Income\ Expense/ Income/ Avg Expense/ Effic- Over-
Interest Avg Avg Avg Income/ Avg iency head
Margin Assets Assets Assets Assets Assets Ratio Ratio
Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%)
- ------------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 3.56 6.87 3.43 3.45 0.22 2.73 70.93 69.07
FLKY First Lancaster Bancshares 4.50 8.27 3.84 4.43 0.00 2.58 58.27 58.27
GLMR Gilmer Financial Svcs, Inc. 2.78 7.50 4.74 2.76 0.51 2.41 73.93 69.11
HBBI Home Building Bancorp 3.54 7.56 4.14 3.43 0.25 2.50 68.18 65.89
HWEN Home Financial Bancorp 4.50 8.70 4.35 4.34 0.35 3.29 70.01 67.62
LONF London Financial Corp. 3.73 7.66 3.97 3.69 0.18 2.34 60.61 58.70
MBSP Mitchell Bancorp Inc. 5.04 7.72 2.85 4.87 0.01 2.41 49.27 49.18
PWBK Pennwood Bancorp Inc. 4.43 7.93 3.75 4.18 0.30 2.88 62.31 59.65
RELI Reliance Bancshares Inc. 5.04 7.46 2.62 4.84 0.05 3.28 67.11 66.79
SCCB S. Carolina Community Bancshrs 4.17 7.74 3.65 4.09 0.26 2.72 62.58 60.19
- ---------------------------------------------------------------------------------------------------------------
Average 4.13 7.74 3.73 4.01 0.21 2.71 64.32 62.45
Median 4.30 7.69 3.80 4.14 0.24 2.65 64.85 63.04
Maximum 5.04 8.70 4.74 4.87 0.51 3.29 73.93 69.11
Minimum 2.78 6.87 2.62 2.76 0.00 2.34 49.27 49.18
Farnsworth Bancorp, Inc. 3.68 7.05 3.58 3.47 0.70 3.06 73.25 67.84
Variance to the Comparable Media(0.62) (0.64) (0.22) (0.67) 0.47 0.41 8.41 4.80
</TABLE>
<PAGE>
Page 24 of 40
Continued
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet Growth
as of the MRG Market Data as of The Most Recent Quarter
------------------------- -----------------------------------------------------------
MRQ MRQ
Asset Loan Deposit MRQ MRQ MRQ MRQ Publicly Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Shar High Low Book Vale Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- ------------------------------- ------------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. (0.03) 0.45 2.14 11.54 13.750 13.750 11.000 13.23 12.48
FLKY First Lancaster Bancshares 31.04 36.26 11.17 14.32 15.250 16.375 14.625 14.92 14.92
GLMR Gilmer Financial Svcs, Inc. 7.89 14.84 14.24 2.70 11.000 12.000 10.000 19.88 19.88
HBBI Home Building Bancorp (4.79) 1.69 (7.69) 7.48 21.250 23.750 18.500 20.61 20.61
HWEN Home Financial Bancorp 5.13 3.81 8.87 8.48 8.750 9.750 7.375 8.03 8.03
LONF London Financial Corp. 1.62 3.80 6.52 7.78 16.750 21.000 14.000 10.23 10.23
MBSP Mitchell Bancorp Inc. 8.96 2.90 16.93 15.59 16.750 18.000 15.250 15.60 15.60
PWBK Pennwood Bancorp Inc. (3.19) 36.55 (2.25) 10.28 16.125 16.500 10.313 12.59 12.59
RELI Reliance Bancshares Inc. (5.68) (0.26) (3.20) 20.30 8.875 10.125 7.125 9.31 9.31
SCCB S. Carolina Community Bancshrs (0.23) (0.31) 7.10 12.61 21.625 25.250 17.500 16.28 16.28
- ----------------------------------------------------------------------------------------------------------------------
Average 4.07 9.97 5.38 11.11 15.01 16.65 12.57 14.07 13.99
Median 0.80 3.35 6.81 10.91 15.69 16.44 12.50 14.08 13.76
Maximum 31.04 36.55 16.93 20.30 21.63 25.25 18.50 20.61 20.61
Minimum (5.68) (0.31) (7.69) 2.70 8.75 9.75 7.13 8.03 8.03
Farnsworth Bancorp, Inc. 5.67 14.17 5.06 4.15 10.00 NA NA 13.03 13.03
Variance to the Comparable Median4.87 10.82 (1.75) (6.76) (5.69) NA NA (1.05) (0.73)
</TABLE>
<PAGE>
Page 25 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
------------------- ---------------------------------------------------------- ------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- ------------------- ---------------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank NA NA NA NA NA NA NA NA 5420
%CCMD Chevy Chase Bank, FSB NA NA NA NA NA NA NA NA NA
AABC Access Anytime Bancorp Inc. - 0.00 10.17 12.81 50.00 9.38 158.31 158.31 NA
ABBK Abington Bancorp Inc. 1.10 26.09 18.62 11.83 15.21 15.87 188.14 207.15 172
ABCL Alliance Bancorp 1.66 30.23 18.28 13.83 15.77 18.28 161.00 162.88 453
ABCW Anchor BanCorp Wisconsin 0.89 14.62 21.30 18.14 18.74 19.09 283.40 288.04 560
AFBC Advance Financial Bancorp 1.73 42.11 20.79 17.95 16.52 19.47 127.41 127.41 NA
AFCB Affiliated Community Bancorp 1.52 30.00 22.89 22.71 20.94 21.88 220.84 221.83 218
AFED AFSALA Bancorp Inc. 1.42 22.83 21.24 16.41 24.69 21.47 120.06 120.06 NA
AHCI Ambanc Holding Co. 1.28 25.00 36.06 15.36 42.61 29.30 131.39 131.39 177
AHM H.F. Ahmanson & Co. 1.17 23.72 21.91 15.08 19.31 20.20 276.83 376.19 NA
ALBC Albion Banc Corp. 1.26 29.70 22.09 9.80 18.27 20.65 114.73 114.73 NA
ALBK ALBANK Financial Corp. 1.62 21.63 16.4 16.34 18.31 16.30 182.2 232.97 1458
ALLB Alliance Bank (MHC) 1.06 58.06 54.84 40.79 53.13 54.84 380.74 380.74 72
AMFC AMB Financial Corp. 1.53 23.42 29.44 16.56 19.01 16.44 117.44 117.44 NA
ANA Acadiana Bancshares Inc. 1.88 33.33 20.69 20.51 18.26 19.48 133.72 133.72 84
ANDB Andover Bancorp Inc. 2.11 28.10 17.06 15.94 15.51 16.65 200.97 200.97 285
ANE Alliance Bncp of New England 0.89 14.52 29.41 15.12 16.30 17.44 189.63 194.30 83
ASBI Ameriana Bancorp 3.28 54.78 19.31 16.32 15.73 16.96 140.29 142.96 153
ASBP ASB Financial Corp. 2.46 58.82 23.90 23.13 22.57 23.90 152.15 152.15 20
ASFC Astoria Financial Corp. 1.46 20.50 19.19 13.28 17.15 17.31 166.89 235.82 1267
ATSB AmTrust Capital Corp. 1.29 35.09 62.00 11.45 29.81 27.19 105.73 106.82 NA
AVND Avondale Financial Corp. - 0.00 NM 9.45 71.88 NM 124.28 124.28 173
BANC BankAtlantic Bancorp Inc. 0.73 NM 37.86 12.40 25.48 17.43 201.37 240.47 1113
BDJI First Federal Bancorp. - 0.00 20.92 16.98 24.06 21.15 155.87 155.87 40
BFD BostonFed Bancorp Inc. 1.68 22.22 22.20 12.48 16.96 18.85 149.47 155.03 263
BFFC Big Foot Financial Corp. - 0.00 42.12 23.24 69.20 36.56 127.13 127.13 NA
BFSB Bedford Bancshares Inc. 1.93 38.89 20.14 21.76 18.13 20.14 155.91 155.91 40
BKC American Bank of Connecticut 2.82 46.24 18.49 19.29 15.34 15.61 213.95 220.95 137
BKCT Bancorp Connecticut Inc. 2.68 43.75 20.75 21.39 16.23 17.97 213.19 213.19 111
BKUNA BankUnited Financial Corp. - 0.00 41.67 8.14 33.65 32.41 185.58 213.94 303
BNKU Bank United Corp. 1.23 18.63 16.90 12.50 9.07 16.11 250.97 277.70 1689
BPLS Bank Plus Corp. - 0.00 18.48 5.86 17.71 20.90 133.23 145.55 602
BRKL Brookline Bancorp (MHC) - NA NA 58.07 NA NA 174.84 174.84 NA
BTHL Bethel Bancorp 2.56 20.83 16.89 6.89 16.45 13.02 91.17 108.60 NA
BVCC Bay View Capital Corp. 1.28 40.00 22.1 11.89 32.68 34.86 163.41 255.29 970
BWFC Bank West Financial Corp. 1.66 49.21 43.94 21.12 45.31 34.52 162.37 162.37 67
BYFC Broadway Financial Corp. 1.78 27.78 37.50 7.56 17.58 15.63 74.65 74.65 52
BYS Bay State Bancorp - NA NA 23.82 NA NA 102.70 102.70 NA
CAFI Camco Financial Corp. 1.95 28.13 20.80 18.84 14.03 15.82 190.46 202.93 212
CAPS Capital Savings Bancorp Inc. 1.10 17.65 18.75 17.74 12.95 15.99 175.12 175.12 83
CASB Cascade Financial Corp. - 0.00 23.80 15.44 17.03 22.70 221.16 221.16 148
CASH First Midwest Financial Inc. 2.07 50.60 32.29 15.18 NM 28.01 146.04 164.31 105
CATB Catskill Financial Corp. 1.82 34.09 20.03 26.57 19.16 20.03 113.42 113.42 77
CAVB Cavalry Bancorp Inc. - NA NA 48.88 NA NA 171.96 171.96 NA
CBCI Calumet Bancorp Inc. - 0.00 12.29 23.55 7.85 12.33 134.62 134.62 135
CBES CBES Bancorp Inc. 1.94 34.48 21.26 16.65 20.63 17.78 116.99 116.99 56
CBK Citizens First Financial Corp. - 0.00 43.75 18.24 25.16 26.48 131.79 131.79 103
CBSA Coastal Bancorp Inc. 1.26 17.45 13.52 6.49 8.39 13.91 176.67 204.98 433
CCFH CCF Holding Co. 2.91 359.32 NM 13.79 91.67 115.79 170.54 170.54 72
CEBK Central Co-operative Bank 1.15 22.38 21.28 14.92 20.50 19.49 151.91 168.02 90
CENB Century Bancorp Inc. 3.36 896.37 17.02 24.66 36.16 17.02 138.89 138.89 11
CFB Commercial Federal Corp. 0.66 11.83 16.54 15.71 41.56 19.33 227.27 259.97 2186
CFCP Coastal Financial Corp. 1.35 27.27 24.39 21.42 19.23 20.20 355.24 355.24 188
CFFC Community Financial Corp. 1.93 37.84 19.59 20.25 17.26 19.59 148.57 149.18 58
CFKY Columbia Financial of Kentucky - NA NA NA NA NA NA NA NA
CFNC Carolina Fincorp Inc. 1.46 38.98 25.38 26.54 NM 27.97 118.71 118.71 44
CFSB CFSB Bancorp Inc. 1.78 32.65 22.76 25.86 20.17 20.64 334.91 334.91 241
CFTP Community Federal Bancorp 1.83 460.66 30.17 31.18 25.74 28.69 118.56 118.56 35
CIBI Community Investors Bancorp 1.56 29.21 19.52 17.93 19.71 19.52 163.22 163.22 26
CKFB CKF Bancorp Inc. 2.63 37.31 18.45 25.96 18.27 14.18 111.31 111.31 9
CLAS Classic Bancshares Inc. 1.81 31.46 22.14 15.17 16.85 17.42 100.78 118.14 NA
CMRN Cameron Financial Corp 1.37 28.57 21.01 23.64 20.38 20.79 113.76 113.76 58
CMSB Commonwealth Bancorp Inc. 1.32 29.29 36.19 16.50 24.25 24.49 180.84 226.21 771
</TABLE>
<PAGE>
Page 26 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- --------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- -------------------- --------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 2.61 87.38 36.32 23.13 35.94 33.50 208.84 208.84 283
CNIT CENIT Bancorp Inc. 1.72 26.92 19.21 15.76 19.38 17.88 217.90 236.28 NA
CNSB CNS Bancorp Inc. 1.37 42.59 35 29.52 27.34 32.41 119.54 119.54 27
CNY Carver Bancorp Inc. - 10.42 31.55 7.02 66.25 27.60 85.15 88.22 NA
COFI Charter One Financial 1.57 39.37 20.71 23.46 18.18 28.73 318.36 339.29 4181
CONE Conestoga Bancorp, Inc. NA 28.17 NA NA NA NA NA NA 105
COOP Cooperative Bankshares Inc. - 0.00 27.93 13.99 23.52 25.54 183.15 183.15 117
CRSB Crusader Holding Corp. - NA NA 28.96 14.34 NA 264.63 NA NA
CRZY Crazy Woman Creek Bancorp 2.21 48.19 21.58 28.06 21.58 21.84 119.01 119.01 10
CSBF CSB Financial Group Inc. - 0.00 47.41 24.06 34.38 44.35 103.93 110.18 NA
CTZN CitFed Bancorp Inc. 0.72 12.25 22.85 18.45 21.47 23.17 294.93 320.13 709
CVAL Chester Valley Bancorp Inc. 1.38 31.55 23.1 20.25 19.44 20.97 233.69 233.69 116
DCBI Delphos Citizens Bancorp Inc. - 6.59 22.39 34.45 22.15 22.39 138.04 138.04 NA
DIBK Dime Financial Corp. 1.38 14.68 11.98 18.01 17.79 11.9 221.99 227.5 149
DIME Dime Community Bancorp Inc. 1.25 19.27 32.01 22.73 25.73 30.01 189.31 217.62 247
DME Dime Bancorp Inc. 0.66 12.21 28.72 15.79 15.53 23.24 267.70 327.29 6390
DNFC D & N Financial Corp. 0.75 8.87 19.96 13.08 16.31 16.82 242.52 244.52 514
DSL Downey Financial Corp. 0.93 17.03 21.70 16.51 13.91 19.27 217.25 219.75 1181
EBI Equality Bancorp Inc. 1.79 NA NA 14.50 NA NA 129.73 129.73 87
EBSI Eagle Bancshares 2.71 66.67 21.67 14.46 19.69 26.25 184.00 184.00 546
EFBC Empire Federal Bancorp Inc. 1.93 44.78 24.81 38.97 24.45 24.81 106.03 106.03 NA
EFBI Enterprise Federal Bancorp 3.45 88.50 30.21 17.54 22.66 25.66 176.08 180.57 42
EFC EFC Bancorp Inc. - NA NA NA NA NA NA NA NA
EGLB Eagle BancGroup Inc. - 0.00 75.96 12.9 27.43 37.98 112.47 112.47 55
EMLD Emerald Financial Corp. 1.08 19.84 22.41 21.66 18.06 20.63 262.10 265.31 123
EQSB Equitable Federal Savings Bank - 0.00 17.94 11.09 16.58 17.43 213.88 213.88 NA
ESBF ESB Financial Corp. 1.78 31.35 18.01 11.18 17.01 18.01 155.33 174.01 122
ESBK Elmira Savings Bank (The) 2.19 43.77 25.88 9.25 17.01 20.74 146.25 146.25 110
ESX Essex Bancorp Inc. - 0.00 NM 1.99 NM NM NM NM 100
ETFS East Texas Financial Services 1.40 27.75 33.14 18.14 32.39 29.69 104.09 104.09 27
FAB FIRSTFED AMERICA BANCORP INC. - 0.00 28.52 13.75 28.13 24.11 126.64 126.64 NA
FBBC First Bell Bancorp Inc. 2.03 31.50 16.06 19.39 14.96 15.55 172.79 172.79 55
FBCI Fidelity Bancorp Inc. 1.72 100.00 22.20 13.58 17.14 68.57 125.88 126.08 NA
FBCV 1ST Bancorp 0.95 14.39 22.76 11.76 13.73 15.47 130.29 132.51 101
FBER 1st Bergen Bancorp 1.05 22.50 23.91 16.52 22.77 23.91 141.25 141.25 58
FBHC Fort Bend Holding Corp. 1.68 22.68 34.42 13.09 25.82 24.48 193.40 206.34 146
FBNW FirstBank Corp. 1.58 NA NA 21.89 16.88 NA 123.48 123.48 95
FBSI First Bancshares Inc. 0.92 12.35 16.05 16.15 18.06 15.29 120.26 125.60 73
FCB Falmouth Bancorp Inc. 1.20 28.77 35.09 27.67 27.78 27.4 123.53 123.53 29
FCBF FCB Financial Corp. 2.75 54.68 22.38 23.77 17.78 23.02 168.69 168.69 144
FCBH Virginia Beach Fed. Financial 1.34 25.00 27.60 14.29 22.42 21.35 200.20 200.20 216
FCBK First Coastal Bankshares NA NA NA NA NA NA NA NA 216
FCME First Coastal Corp. - 0.00 16.46 12.23 16.07 14.52 121.62 121.62 72
FDEF First Defiance Financial 2.39 53.97 24.69 21.19 19.82 23.91 120.12 120.12 161
FED FirstFed Financial Corp. - 0.00 22.14 13.49 17.27 21.5 236.05 237.78 436
FESX First Essex Bancorp Inc. 2.46 39.69 19.12 13.25 16.73 17.37 188.17 213.41 255
FFBA First Colorado Bancorp Inc. 1.82 39.52 24.05 30.89 24.68 23.08 226.28 230.85 NA
FFBH First Federal Bancshares of AR 1.02 20.34 24.66 23.50 22.81 23.20 159.16 159.16 148
FFBI First Financial Bancorp Inc. - 0.00 41.39 12.69 52.60 84.17 137.45 137.45 36
FFBS FFBS BanCorp Inc. 2.25 208.33 18.54 25.92 18.54 18.54 147.64 147.64 32
FFBZ First Federal Bancorp Inc. 1.11 24.76 25.51 18.79 31.56 24.05 246.58 246.82 72
FFCH First Financial Holdings Inc. 1.83 34.21 20.91 16.82 19.83 20.18 264.37 264.37 585
FFDB FirstFed Bancorp Inc. 2.00 41.67 18.12 16.15 18.38 18.12 166.67 181.55 67
FFDF FFD Financial Corp. 1.31 25.64 44.11 33.12 47.79 19.61 148.66 148.66 NA
FFED Fidelity Federal Bancorp 5.42 NM NM 11.68 NM NM 172.31 172.31 110
FFES First Federal of East Hartford 1.83 30.24 16.35 10.16 19.34 18.11 146.97 146.97 192
FFFD North Central Bancshares Inc. 1.46 20.90 17.93 21.47 16.08 17.09 139.15 159.90 106
FFFL Fidelity Bankshares Inc. (MHC) 3.04 81.02 31.85 15.26 23.89 27.43 227.71 234.75 293
FFHH FSF Financial Corp. 2.63 44.64 17.27 13.63 16.96 16.96 117.43 117.43 92
FFHS First Franklin Corp. 1.56 24.60 19.24 13.18 14.27 16.63 142.59 143.19 52
FFIC Flushing Financial Corp. 1.19 21.31 22.69 19.6 21.77 22.13 154.11 160.24 NA
FFKY First Federal Financial Corp. 2.06 36.42 18.54 27.65 17.03 18.05 209.29 221.01 114
FFLC FFLC Bancorp Inc. 1.81 31.22 21.37 18.22 19.11 20.28 143.40 143.40 132
FFOH Fidelity Financial of Ohio 1.86 144.94 20.06 17.86 19.60 19.38 148.20 167.31 102
</TABLE>
<PAGE>
Page 27 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- --------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- -------------------- --------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 1.60 36.31 38.49 12.39 27.42 24.51 189.61 193.79 NA
FFSL First Independence Corp. - 34.54 18.26 10.65 17.34 18.26 114.76 114.76 27
FFSX First Fed SB of Siouxland(MHC) 1.32 41.74 31.47 18.13 33.80 31.74 251.55 317.67 176
FFWC FFW Corp. 2.47 27.91 13.49 12.40 12.14 13.18 129.38 140.96 53
FFWD Wood Bancorp Inc. 1.89 34.70 24.32 29.04 21.43 20.93 220.05 220.05 48
FFYF FFY Financial Corp. 2.44 37.69 16.74 20.64 16.08 16.49 157.53 157.53 171
FGHC First Georgia Holding Inc. - 18.18 25.00 25.06 24.55 25.00 309.68 332.13 91
FIBC Financial Bancorp Inc. 1.82 25.60 16.98 15.12 15.63 16.57 167.38 168.09 61
FISB First Indiana Corp. 1.93 30.43 23.92 18.77 18.84 18.03 202.73 205.07 651
FKFS First Keystone Financial 1.07 10.42 17.86 11.75 15.63 15.63 176.06 176.06 76
FKKY Frankfort First Bancorp Inc. 4.92 NM 25.39 19.74 16.93 90.28 116.4 116.40 23
FLAG FLAG Financial Corp. 1.27 33.85 34.38 20.67 22.34 26.68 239.93 239.93 NA
FLFC First Liberty Financial Corp. 1.28 33.33 27.01 20.16 18.36 27.98 274.21 299.74 NA
FLGS Flagstar Bancorp Inc. 1.13 6.59 13.67 13.26 11.52 13.67 254.61 262.95 1330
FLKY First Lancaster Bancshares 3.31 94.34 28.54 27.01 27.01 28.54 101.37 101.37 NA
FMBD First Mutual Bancorp Inc. 1.90 80.00 51.14 15.27 35.16 42.19 99.56 128.62 167
FMCO FMS Financial Corp. 0.77 11.82 21.36 16.83 23.04 21.36 282.96 285.71 323
FMSB First Mutual Savings Bank 1.19 46.96 16.88 14.98 14.55 15.34 217.74 217.74 NA
FNGB First Northern Capital Corp. 2.64 47.83 20.96 17.94 18.92 19.75 161.63 161.63 221
FOBC Fed One Bancorp 1.61 46.56 29.71 25.15 34.49 29.48 216.63 225.61 139
FPRY First Financial Bancorp NA 39.66 NA NA NA NA NA NA NA
FSBI Fidelity Bancorp Inc. 1.50 20.87 17.65 11.71 18.75 17.39 171.18 171.18 NA
FSFF First SecurityFed Financial - NA NA 33.20 17.45 NA 114.80 115.12 NA
FSLA First Source Bancorp Inc. 1.20 NA NA NA NA NA NA NA 212
FSNJ Bayonne Bancshares Inc. 1.04 NA NA 24.18 31.37 NA 153.46 153.46 80
FSPG First Home Bancorp Inc. 1.29 23.95 18.98 15.45 18.10 18.64 220.74 223.60 117
FSPT FirstSpartan Financial Corp. 1.36 NA NA 38.73 23.91 NA 147.30 147.30 133
FSSB First FS&LA of San Bernardino - 0.00 NM 3.05 NM NM 70.36 73.03 51
FSTC First Citizens Corp. 1.05 14.42 16.22 23.94 16.58 14.66 237.17 296.69 NA
FTF Texarkana First Financial Corp 1.88 30.77 16.62 28.32 15.82 16.35 186.05 186.05 36
FTFC First Federal Capital Corp. 1.61 25.81 24.47 20.36 18.1 18.68 283.91 299.31 NA
FTNB Fulton Bancorp Inc. 1.22 26.92 32.92 30.64 35.27 25.32 131.14 131.14 NA
FTSB Fort Thomas Financial Corp. 1.67 35.71 17.86 21.77 22.06 17.86 137.99 137.99 20
FWWB First SB of Washington Bancorp 1.46 21.21 19.68 21.97 18.08 18.63 152.57 164.73 NA
GAF GA Financial Inc. 2.77 39.32 18.24 18.80 18.75 17.31 134.19 135.45 204
GBNK Gaston Federal Bancorp (MHC) - NA NA NA NA NA NA NA NA
GDW Golden West Financial 0.46 7.29 16.74 15.64 15.41 16.82 220.44 220.44 4447
GFCO Glenway Financial Corp. 1.83 35.65 22.43 18.23 20.69 22.22 190.48 192.15 69
GFED Guaranty Federal Bcshs Inc. 4.66 NA NA 32.54 22.99 NA 114.85 114.85 83
GLMR Gilmer Financial Svcs, Inc. - 0.00 20.77 6.41 NM 117.71 71.05 71.05 12
GOSB GSB Financial Corp. - NA NA 32.63 39.20 NA 115.93 115.93 37
GPT GreenPoint Financial Corp. 1.55 28.92 21.66 26.42 22.99 22.36 237.38 425.67 1869
GSB Golden State Bancorp Inc. - 0.00 18.88 11.38 19.62 21.80 207.97 229.16 NA
GSBC Great Southern Bancorp Inc. 1.69 24.85 17.11 25.64 15.85 15.38 312.88 315.15 445
GSFC Green Street Financial Corp. 2.69 86.76 24.08 39.56 24.08 24.08 110.57 110.57 32
GSLA GS Financial Corp. 1.61 NA NA 44.98 27.15 NA 108.05 108.05 33
GTPS Great American Bancorp 2.02 74.07 40.28 23.63 36.25 40.28 118.34 118.34 NA
GUPB GFSB Bancorp Inc. 1.72 33.77 19.62 15.75 18.45 19.62 127.68 127.68 NA
HALL Hallmark Capital Corp. - 0.00 16.67 10.45 17.05 15.96 128.42 128.42 77
HARB Harbor Florida Bancshares Inc. 2.19 NA NA 28.38 NA NA 143.24 144.99 343
HARL Harleysville Savings Bank 1.36 20.69 15.95 14.72 15.56 15.95 220.84 220.84 55
HARS Harris Financial Inc. (MHC) 0.91 37.56 66.84 36.14 35.39 43.75 444.79 495.12 NA
HAVN Haven Bancorp Inc. 1.13 27.03 24.31 11.60 27.60 23.87 205.27 205.75 663
HBBI Home Building Bancorp 1.25 26.32 22.02 17.63 25.00 21.05 116.45 116.45 13
HBEI Home Bancorp of Elgin Inc. 2.44 105.26 43.09 30.43 51.17 43.09 117.38 117.38 119
HBFW Home Bancorp 0.63 15.87 25.91 21.27 21.54 25.30 176.69 176.69 83
HBNK Highland Bancorp Inc. 2.34 0.00 17.38 17.87 13.53 15.16 227.88 227.88 110
HBS Haywood Bancshares Inc. 2.64 32.77 12.85 18.71 11.15 12.85 126.04 130.15 35
HBSC Heritage Bancorp Inc. - NA NA NA NA NA NA NA NA
HCBB HCB Bancshares Inc. 1.33 NA NA 19.36 53.57 NA 103.81 107.53 70
HCBC High Country Bancorp Inc. 2.00 NA NA 21.50 23.44 NA 109.89 109.89 40
HCFC Home City Financial Corp. 2.32 NA NA 18.36 16.85 NA 98.79 98.79 16
HEMT HF Bancorp Inc. - 0.00 77.84 10.14 NM NM 129.05 152.09 NA
HFBC HopFed Bancorp Inc. - NA NA 37.69 NA NA 145.08 145.08 28
</TABLE>
<PAGE>
Page 28 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- --------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- -------------------- --------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp 2.46 75.95 20.57 29.07 20.31 20.57 101.69 101.69 15
HFFC HF Financial Corp. 1.22 20.00 18.25 17.75 18.55 17.04 182.68 182.68 260
HFGI Harrington Financial Group 1.06 NM 161.61 6.77 NM NM 153.09 153.09 76
HFNC HFNC Financial Corp. 2.63 38.67 23.38 21.33 15.20 16.21 123.66 123.66 125
HFSA Hardin Bancorp Inc. 2.68 45.37 20.83 13.17 16.15 17.94 118.36 118.36 25
HFWA Heritage Financial Corp. 0.94 NA NA 44.95 NA NA 156.09 156.09 NA
HHFC Harvest Home Financial Corp. 2.93 67.74 24.19 14.71 26.79 24.19 129.65 129.65 NA
HIFS Hingham Instit. for Savings 1.49 30.24 17.07 19.69 16.51 17.07 207.84 207.84 62
HLFC Home Loan Financial Corp. - NA NA 42.98 NA NA 110.35 110.35 NA
HMLK Hemlock Federal Financial Corp 1.53 NA NA 19.18 21.80 NA 118.45 118.45 NA
HMNF HMN Financial Inc. 0.89 0.00 26.09 15.28 16.07 18.56 131.68 141.62 154
HOMF Home Federal Bancorp 1.29 19.24 20.67 22.54 15.50 16.85 245.06 251.83 261
HPBC Home Port Bancorp Inc. 3.06 49.08 14.35 21.32 25.12 16.03 218.07 218.07 50
HRBF Harbor Federal Bancorp Inc. 2.31 46.08 22.96 16.48 20.83 22.06 129.91 129.91 48
HRZB Horizon Financial Corp. 2.51 76.15 16.2 23.92 15.63 16.06 155.97 155.97 124
HTHR Hawthorne Financial Corp. - 0.00 9.94 5.44 14.06 11.69 127.93 127.93 NA
HWEN Home Financial Bancorp 1.10 22.22 24.66 20.45 14.26 20.28 113.64 113.64 20
HZFS Horizon Financial Svcs Corp. 1.11 18.28 22.57 15.42 15.05 17.47 169.27 169.27 26
IBSF IBS Financial Corp. 2.21 67.86 32.26 26.32 30.11 32.26 151.66 151.66 126
ICBC Independence Comm. Bank Corp. - NA NA NA NA NA NA NA NA
IFSB Independence Federal Svgs Bank 1.47 29.19 65.38 7.93 6.85 10.56 109.96 121.52 NA
INBI Industrial Bancorp Inc. 3.19 48.60 17.58 25.54 16.8 17.58 154.97 154.97 86
IPSW Ipswich Savings Bank 0.91 13.86 22.44 17.60 14.11 17.33 333.33 333.33 66
ITLA ITLA Capital Corp. - 0.00 13.19 16.47 12.29 13.19 161.86 162.35 163
IWBK InterWest Bancorp Inc. 1.63 27.87 22.46 18.72 21.53 19.06 276.95 281.31 668
JOAC Joachim Bancorp Inc. 2.97 138.89 46.70 35.49 46.70 46.70 122.72 122.72 14
JSB JSB Financial Inc. 2.73 38.67 18.02 37.01 19.52 15.62 155.38 155.38 NA
JSBA Jefferson Savings Bancorp 0.93 24.00 33.71 24.21 34.09 30.00 235.48 293.54 NA
JXSB Jacksonville Savings Bk (MHC) 1.40 55.57 65.15 24.18 41.35 42.16 232.94 232.94 83
JXVL Jacksonville Bancorp Inc. 2.41 36.76 15.26 21.39 18.53 15.26 145.21 145.21 NA
KFBI Klamath First Bancorp 1.75 35.96 21.84 19.49 21.13 21.84 120.28 131.07 237
KNK Kankakee Bancorp Inc. 1.35 23.65 17.93 12.25 16.44 17.49 126.97 152.62 142
KSAV KS Bancorp Inc. NA 63.46 NA NA NA NA NA NA 33
KSBK KSB Bancorp Inc. 0.53 6.52 13.99 15.26 13.79 13.59 196.13 225.63 NA
KYF Kentucky First Bancorp Inc. 3.18 64.10 20.45 23.87 19.69 20.19 140.12 140.12 20
LARK Landmark Bancshares Inc. 2.21 35.46 21.88 19.53 18.84 19.24 138.39 138.39 49
LARL Laurel Capital Group Inc. 2.45 28.54 16.47 21.44 14.76 16.10 201.61 201.61 45
LFBI Little Falls Bancorp Inc. 1.03 19.48 26.35 13.59 25.66 25.32 133.29 144.34 40
LFCO Life Financial Corp. - 0.00 8.90 35.51 9.72 9.21 234.90 234.90 272
LFED Leeds Federal Bankshares (MHC) 2.84 80.82 29.92 34.23 29.04 29.92 207.46 207.46 27
LISB Long Island Bancorp Inc. 0.97 26.67 33.95 23.62 25.89 27.61 263.80 266.06 1362
LO Local Financial Corp. - NM NA NA NA NM NA NA 481
LOGN Logansport Financial Corp. 2.35 40.40 16.83 24.09 18.48 17.17 127.72 127.72 14
LONF London Financial Corp. 1.57 609.30 19.06 20.52 15.25 17.73 149.07 149.07 10
LSBI LSB Financial Corp. 1.27 18.78 18.75 13.36 15.63 16.85 148.74 148.74 64
LSBX Lawrence Savings Bank - 0.00 8.01 18.69 8.94 7.93 167.85 167.85 100
LVSB Lakeview Financial Corp. 0.96 8.08 27.37 21.35 10.32 16.77 221.28 269.71 NA
LXMO Lexington B&L Financial Corp. 1.89 43.48 23.01 18.82 33.07 23.01 104.51 111.40 NA
MAFB MAF Bancorp Inc. 1.11 11.67 16.24 16.27 16.10 15.83 210.18 236.91 873
MARN Marion Capital Holdings 3.12 66.17 21.24 26.03 24.35 21.24 126.68 129.41 NA
MASB MASSBANK Corp. 2.00 32.60 19.31 19.30 16.23 17.48 167.50 169.84 180
MBBC Monterey Bay Bancorp Inc. 0.66 23.64 41.91 16.79 38.17 38.86 134.94 144.33 102
MBLF MBLA Financial Corp. 1.66 27.59 16.75 14.55 15.46 16.64 107.80 107.80 NA
MBSP Mitchell Bancorp Inc. 2.39 67.80 28.39 42.22 26.17 28.39 107.37 107.37 NA
MCBN Mid-Coast Bancorp Inc. 1.45 25.88 19.35 13.56 20.00 17.91 160.00 160.00 25
MDBK Medford Bancorp Inc. 1.92 37.10 17.79 16.87 15.30 16.78 182.65 193.25 252
MECH MECH Financial Inc. 2.08 0.00 11.46 16.16 17.61 11.46 168.47 168.47 230
METF Metropolitan Financial Corp. - 0.00 18.29 10.69 13.39 16.13 276.75 299.40 302
MFBC MFB Corp. 1.26 25.19 21.26 15.35 16.88 20.93 130.37 130.37 70
MFFC Milton Federal Financial Corp. 3.72 90.91 27.80 15.91 20.16 24.43 129.10 129.10 51
MFLR Mayflower Co-operative Bank 3.37 40.76 16.84 16.19 13.19 15.13 165.97 168.56 48
MFSL Maryland Federal Bancorp 1.15 32.58 29.96 21.40 44.60 29.73 244.24 246.55 285
MIFC Mid-Iowa Financial Corp. 0.67 9.20 15.22 13.92 16.49 13.65 157.28 157.49 37
MIVI Mississippi View Holding Co. 1.60 16.84 21.28 21.57 20.83 21.05 118.69 118.69 21
</TABLE>
<PAGE>
Page 29 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- --------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- -------------------- --------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 1.73 NA NA 19.31 18.75 NA 105.81 105.81 NA
MRKF Market Financial Corp. 2.04 40.38 26.44 31.80 28.65 26.44 90.16 90.16 9
MSBF MSB Financial Inc. 1.77 28.50 19.10 26.34 15.74 17.00 157.70 157.70 19
MSBK Mutual Savings Bank FSB - 0.00 NM 7.68 22.60 NM 151.42 151.42 239
MWBI Midwest Bancshares Inc. 1.78 18.33 15.00 10.21 14.06 13.13 148.17 148.17 42
MWBX MetroWest Bank 1.54 31.48 14.47 17.18 15.03 14.47 238.2 238.20 183
MYST Mystic Financial Inc. 1.31 NA NA 22.02 NA NA 115.53 115.53 54
NASB NASB Financial Inc. 1.53 14.87 14.92 19.98 11.70 12.17 235.36 242.41 247
NBCP Niagara Bancorp Inc. (MHC) - NA NA NA NA NA NA NA NA
NBN Northeast Bancorp 1.33 27.29 21.33 11.52 14.81 20.51 164.61 181.20 NA
NBSI North Bancshares Inc. 2.46 85.00 42.76 17.56 33.85 40.63 153.30 153.30 37
NEIB Northeast Indiana Bancorp 1.58 24.26 15.81 18.13 15.81 15.81 135.82 135.82 43
NEP Northeast PA Financial Corp. - NA NA NA NA NA NA NA NA
NHTB New Hampshire Thrift Bncshrs 3.08 38.89 15.60 12.72 14.77 14.44 157.13 180.89 121
NMSB NewMil Bancorp Inc. 2.35 41.18 20.34 14.13 18.92 20.04 158.61 158.61 129
NSLB NS&L Bancorp Inc. 2.84 79.37 27.93 19.74 27.49 27.93 105.04 105.80 NA
NSSY NSS Bancorp Inc. 1.21 17.09 22.63 15.26 19.20 18.38 188.10 193.26 NA
NTBK Net.B@nk Inc. - 0.00 NM 93.05 NM NM 445.95 445.95 NA
NTMG Nutmeg Federal S&LA 1.84 38.04 54.38 9.64 20.91 23.64 165.27 165.27 NA
NWEQ Northwest Equity Corp. 3.14 37.04 15.67 17.17 13.77 15.09 137.48 137.48 36
NWSB Northwest Bancorp Inc. (MHC) 1.01 36.36 36.92 30.86 33.07 36.08 348.90 390.05 844
OCFC Ocean Financial Corp. 2.48 42.11 20.18 19.82 19.38 20.39 139.39 139.39 242
OCN Ocwen Financial Corp. - 0.00 65.30 44.03 17.23 17.35 336.68 355.49 1147
OFCP Ottawa Financial Corp. 1.40 28.07 22.62 16.55 22.27 20.96 195.88 238.89 256
OHSL OHSL Financial Corp. 2.99 52.38 21.20 16.61 18.21 19.94 153.39 153.39 61
OSFS Ohio State Financial Services - NA NA 26.32 NA NA 97.15 97.15 14
OTFC Oregon Trail Financial Corp. 1.21 NA NA 27.81 NA NA 107.56 107.56 NA
PBCI Pamrapo Bancorp Inc. 3.95 59.54 16.99 21.15 17.30 16.40 164.97 165.94 90
PBCT People's Bank (MHC) 2.17 45.94 45.59 27.14 23.63 24.84 294.01 343.22 3305
PBHC Pathfinder Bancorp Inc. (MHC) 0.93 30.66 45.05 31.21 38.62 34.88 258.98 305.87 NA
PBKB People's Bancshares Inc. 2.04 29.22 36.96 9.79 14.83 16.56 266.74 276.27 NA
PBOC PBOC Holdings Inc. - 0.00 78.13 2.00 NA 12.34 142.48 142.48 226
PCBC Perry County Financial Corp. 2.14 45.05 21.06 22.48 22.48 21.06 118.72 118.72 NA
PDB Piedmont Bancorp Inc. 4.10 68.97 17.11 20.19 15.23 16.81 125.48 125.48 30
PEDE Great Pee Dee Bancorp 1.94 NA NA 49.28 22.79 NA 109.23 109.23 NA
PEEK Peekskill Financial Corp. 2.04 54.55 25.92 27.15 27.54 26.70 118.13 118.13 25
PERM Permanent Bancorp Inc. 1.38 28.23 25.81 16.03 23.53 25.81 154.74 156.56 128
PFDC Peoples Bancorp 1.93 33.34 17.77 25.56 17.23 17.77 169.40 169.40 84
PFED Park Bancorp Inc. - 0.00 25.70 21.57 17.55 25.35 108.31 108.31 44
PFFB PFF Bancorp Inc. - 0.00 22.47 12.14 19.23 21.05 134.23 135.59 530
PFFC Peoples Financial Corp. 4.53 859.38 32.32 22.83 11.42 20.70 119.26 119.26 19
PFNC Progress Financial Corp. 0.62 12.66 25.33 16.68 21.88 22.65 302.20 340.71 228
PFSB PennFed Financial Services Inc 0.82 12.07 15.18 11.16 13.71 14.66 144.31 166.50 210
PFSL Pocahontas Bancorp Inc. 2.45 NA NA NA NA NA NA NA 71
PHBK Peoples Heritage Finl Group 1.85 29.20 17.46 18.09 16.49 17.34 269.27 353.95 2584
PHFC Pittsburgh Home Financial Corp 1.36 230.25 17.28 10.26 15.74 14.81 138.13 139.77 64
PHSB Peoples Home Savings Bk (MHC) 1.19 NA NA 24.86 31.45 NA 194.82 194.82 NA
PLSK Pulaski Savings Bank (MHC) 1.68 NA NA 19.75 31.92 NA 171.22 171.22 45
PRBC Prestige Bancorp Inc. 0.89 16.03 26.35 12.78 30.47 25.66 130.00 130.00 45
PROV Provident Financial Holdings - 0.00 41.44 13.66 20.72 20.53 123.21 123.21 NA
PSBK Progressive Bank Inc. 1.93 32.57 18.64 17.80 20.28 18.98 200.07 219.26 259
PSFC Peoples-Sidney Financial Corp. 1.16 NA NA 40.93 30.24 NA 151.36 151.36 20
PSFI PS Financial Inc. 3.56 916.67 18.49 33.40 16.07 28.13 120.00 120.00 15
PTRS Potters Financial Corp. 1.28 18.81 19.13 14.32 20.38 18.56 164.47 164.47 45
PULB Pulaski Bank, Svgs Bank (MHC) 2.43 113.16 56.56 51.89 47.14 47.63 386.42 386.42 NA
PULS Pulse Bancorp 2.90 42.61 15.88 15.92 16.44 15.70 190.91 190.91 60
PVFC PVF Capital Corp. - 0.00 14.77 16.51 13.54 13.98 229.28 229.28 NA
PVSA Parkvale Financial Corp. 1.91 24.95 15.29 15.37 14.86 15.29 196.63 197.62 242
PWBK Pennwood Bancorp Inc. 1.93 49.04 25.93 22.15 70.00 26.92 111.20 111.20 11
QCBC Quaker City Bancorp Inc. - 0.00 17.42 12.48 15.54 16.91 142.50 142.50 161
QCFB QCF Bancorp Inc. - 0.00 14.06 26.91 12.66 13.87 152.03 152.03 NA
QCSB Queens County Bancorp Inc. 2.25 43.21 27.99 40.93 24.18 27.47 339.44 339.44 NA
RARB Raritan Bancorp Inc. 2.07 32.48 18.83 16.53 18.13 18.59 219.36 222.22 91
RCBK Richmond County Financial Corp 1.05 NA NA 34.52 NA NA 156.63 157.28 325
</TABLE>
<PAGE>
Page 30 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- --------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- -------------------- --------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. - 0.00 13.11 14.52 12.09 13.45 169.28 169.84 262
RELI Reliance Bancshares Inc. - 0.00 42.82 45.96 30.58 40.78 91.98 91.98 NA
RELY Reliance Bancorp Inc. 1.81 33.17 21.21 17.61 20.77 20.04 198.09 287.08 NA
RIVR River Valley Bancorp 1.07 15.38 17.86 16.67 16.74 16.03 122.23 123.84 NA
ROSE TR Financial Corp. 1.71 29.33 22.89 18.44 18.81 20.25 283.29 283.29 435
RSLN Roslyn Bancorp Inc. 1.52 23.21 20.85 25.78 16.41 19.92 153.78 154.52 399
RVSB Riverview Bancorp Inc. 0.82 NA NA 38.3 18.48 NA 171.2 177.08 92
SBAN SouthBanc Shares Inc. 7.13 NA NA NA NA NA NA NA NA
SBFL SB of the Finger Lakes (MHC) 1.22 76.92 89.2 27.93 70.09 75.48 321.72 321.72 70
SBOS Boston Bancorp (The) NA 10.89 NA NA NA NA NA NA NA
SCBS Southern Community Bancshares - 332.32 20.78 27.08 26.95 21.04 170.79 170.79 NA
SCCB S. Carolina Community Bancshrs 2.94 83.78 29.39 27.23 24.72 29.39 133.60 133.60 NA
SFED SFS Bancorp Inc. 1.46 29.90 23.40 15.16 23.91 22.68 122.63 122.63 58
SFFC StateFed Financial Corp. 1.39 28.17 20.25 25.08 21.14 20.25 141.49 141.49 NA
SFIN Statewide Financial Corp. 2.00 33.33 17.19 14.83 17.74 17.05 150.79 151.00 NA
SFSB SuburbFed Financial Corp. 0.68 15.92 30.68 13.44 28.13 23.51 199.87 200.38 167
SFSL Security First Corp. 1.40 28.83 23.20 28.38 22.20 23.20 300.82 305.09 155
SGVB SGV Bancorp Inc. - 0.00 32.87 10.38 22.19 27.31 131.58 133.36 97
SHEN First Shenango Bancorp Inc. 1.46 28.44 19.07 21.04 23.84 19.43 175.66 175.66 98
SHSB SHS Bancorp Inc. - NA NA 16.46 16.44 NA 118.89 118.89 27
SIB Staten Island Bancorp Inc. 1.29 NA NA 36.64 21.69 NA 139.83 143.53 590
SISB SIS Bancorp Inc. 1.55 31.64 18.47 16.08 17.83 23.38 226.09 226.09 605
SKAN Skaneateles Bancorp Inc. 1.60 25.01 16.51 9.78 19.02 16.20 140.22 143.91 119
SKBO First Carnegie Deposit (MHC) 1.54 NA NA 31.22 81.25 NA 181.56 181.56 19
SMBC Southern Missouri Bancorp Inc. 2.35 71.43 31.72 21.67 53.13 30.36 129.18 129.18 54
SOBI Sobieski Bancorp Inc. 1.64 47.69 30.47 16.58 28.68 30.00 109.30 109.30 NA
SOPN First Savings Bancorp Inc. 4.12 68.46 18.65 30.01 17.83 18.65 130.31 130.31 42
SOSA Somerset Savings Bank - 0.00 11.99 16.18 8.06 11.46 223.2 223.20 142
SPBC St. Paul Bancorp Inc. 1.58 26.76 18.08 18.95 18.08 17.83 202.83 203.64 1064
SRN Southern Banc Co. - 81.40 37.5 18.77 31.01 37.50 107.86 108.66 NA
SSB Scotland Bancorp Inc. 2.25 NM 15.57 27.72 24.65 15.57 112.20 112.20 13
SSFC South Street Financial Corp. 4.10 NM NA 21.01 40.63 23.21 118.47 118.47 38
SSM Stone Street Bancorp Inc. 2.33 570.83 23.51 33.47 19.75 25.32 119.55 119.55 20
STFR St. Francis Capital Corp. 1.34 21.22 19.27 13.25 15.37 17.07 165.60 185.34 395
STSA Sterling Financial Corp. - 0.00 22.28 10.31 18.30 19.56 183.96 197.42 513
SVRN Sovereign Bancorp Inc. 0.46 12.52 21.60 12.85 48.61 31.25 249.29 290.7 2579
SWBI Southwest Bancshares Inc. 2.53 50.00 20.81 22.43 18.39 20.27 193.07 193.07 91
SWCB Sandwich Bancorp Inc. 2.23 52.21 26.26 23.19 27.05 25.20 286.92 296.27 153
SZB SouthFirst Bancshares Inc. 3.06 67.31 22.30 11.80 27.26 25.16 117.16 120.10 67
THR Three Rivers Financial Corp. 2.26 37.04 19.44 16.34 20.25 18.00 120.88 121.26 NA
THRD TF Financial Corp. 1.83 33.07 24.28 13.07 21.14 20.64 148.72 176.56 159
TPNZ Tappan Zee Financial Inc. 1.40 33.77 27.78 22.85 21.74 25.97 135.59 135.59 14
TRIC Tri-County Bancorp Inc. 2.98 47.30 19.16 19.29 20.49 19.93 122.61 122.61 19
TSBK Timberland Bancorp Inc. 1.44 NA NA 38.89 NA NA 121.02 121.02 91
TSBS Peoples Bancorp Inc. 1.00 NA NA NA NA NA NA NA 157
TSH Teche Holding Co. 2.55 43.86 17.37 16.57 16.35 17.21 119.81 119.81 166
TWIN Twin City Bancorp 2.91 46.45 18.84 15.7 14.95 15.45 123.10 123.10 55
UBMT United Financial Corp. 3.59 NA NA 24.00 NM NA 157.22 162.54 NA
UCBC Union Community Bancorp 2.02 NA NA 41.87 19.57 NA 104.61 104.61 NA
UFRM United Federal Savings Bank 1.33 43.64 48.65 19.22 32.14 32.73 256.41 256.41 134
UPFC United PanAm Financial Corp. - 0.00 NM 37.43 NA 20.05 NM NM 490
USAB USABancshares Inc. - 0.00 131.82 21.24 11.33 NM 179.23 180.35 NA
UTBI United Tennessee Bankshares 8.07 NA NA 28.83 NA NA 106.86 106.86 19
WAMU Washington Mutual Inc. 1.73 50.57 20.41 17.30 16.96 31.81 320.98 342.68 19207
WAYN Wayne Savings Bancshares (MHC) 2.01 75.15 40.58 26.77 46.67 37.33 284.55 284.55 100
WBST Webster Financial Corp. 1.36 20.83 16.57 11.72 14.69 16.83 221.47 251.27 1294
WCBI Westco Bancorp Inc. 2.23 35.75 18.48 23.53 17.33 17.04 152.42 152.42 55
WCFB Webster City Federal SB (MHC) 4.24 125.00 29.49 42.44 29.49 29.49 176.73 176.73 21
WEFC Wells Financial Corp. 2.89 29.75 17.89 19.41 15.26 17.15 134.39 134.39 NA
WEHO Westwood Homestead Fin. Corp. 2.88 NM NA 27.36 26.04 39.06 119.05 119.05 22
WES Westcorp 1.63 62.50 NM 8.45 NM 19.14 96.84 97.07 2432
WFI Winton Financial Corp. 1.52 26.97 23.57 19.21 17.19 18.54 263.16 267.86 NA
WFSL Washington Federal Inc. 3.06 41.37 14.16 26.74 13.56 13.89 199.38 215.52 656
WHGB WHG Bancshares Corp. 2.00 52.00 31.37 18.76 44.44 32.00 111.34 111.34 NA
</TABLE>
<PAGE>
Page 31 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- --------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- -------------------- --------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 3.92 833.33 134.21 16.41 33.55 212.50 111.94 119.66 110
WRNB Warren Bancorp Inc. 2.98 55.63 16.3 24.82 16.75 15.08 224.64 224.64 135
WSB Washington Savings Bank, FSB 1.38 22.73 22.66 12.02 20.14 16.48 138.62 138.62 NA
WSBI Warwick Community Bancorp - NA NA 29.73 NA NA 128.96 128.96 NA
WSFS WSFS Financial Corp. 0.55 0.00 16.92 17.87 15.71 16.54 300.96 302.61 303
WSTR WesterFed Financial Corp. 2.01 37.20 18.56 13.58 25.91 18.84 127.76 159.35 352
WVFC WVS Financial Corp. 3.24 247.62 17.45 22.46 18.50 17.62 204.42 204.42 59
WYNE Wayne Bancorp Inc. 0.65 20.41 31.63 22.94 35.23 31.63 180.76 180.76 63
YFCB Yonkers Financial Corp. 1.45 22.22 18.63 16.99 19.38 17.94 128.91 128.91 66
YFED York Financial Corp. 2.40 44.14 23.83 15.89 22.59 19.54 181.19 181.19 383
- ---------------------------------------------------------------------------------------------------------------------------
Average 1.55 50.06 25.79 20.51 22.79 23.33 171.31 178.18 374
</TABLE>
<PAGE>
Page 32 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 06/08/98 Productivity
-------------------- -------------------------------------------------------- --------------
LTM Price/ Price/Tang Full Time
Current Dividend Price/ Publicly Publicly Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Book Value Book Value Most Recent
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Qtr
- ------------------------------- ------------------- ---------------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 0.000 0.00 47.41 24.06 34.38 44.35 103.93 110.18 NA
FLKY First Lancaster Bancshares 3.306 94.34 28.54 27.01 27.01 28.54 101.37 101.37 NA
GLMR Gilmer Financial Svcs, Inc. 0.000 0.00 20.77 6.41 NM 117.71 71.05 71.05 12
HBBI Home Building Bancorp 1.250 26.32 22.02 17.63 25.00 21.05 116.45 116.45 13
HWEN Home Financial Bancorp 1.096 22.22 24.66 20.45 14.26 20.28 113.64 113.64 20
LONF London Financial Corp. 1.574 609.30 19.06 20.52 15.25 17.73 149.07 149.07 10
MBSP Mitchell Bancorp Inc. 2.388 67.80 28.39 42.22 26.17 28.39 107.37 107.37 NA
PWBK Pennwood Bancorp Inc. 1.929 49.04 25.93 22.15 70.00 26.92 111.20 111.20 11
RELI Reliance Bancshares Inc. 0.000 0.00 42.82 45.96 30.58 40.78 91.98 91.98 NA
SCCB S. Carolina Community Bancshrs 2.943 83.78 29.39 27.23 24.72 29.39 133.60 133.60 NA
- ----------------------------------------------------------------------------------------------------------------------------
Average 1.45 95.28 28.90 25.36 29.71 37.51 109.97 110.59 13
Median 1.41 37.68 27.16 23.11 26.17 28.47 109.29 110.69 12
Maximum 3.31 609.30 47.41 45.96 70.00 117.71 149.07 149.07 20
Minimum 0.00 0.00 19.06 6.41 14.26 17.73 71.05 71.05 10
Farnsworth Bancorp, Inc. NA NA NA NA NA NA NA NA NA
Variance to the Comparable MediaNA NA NA NA NA NA NA NA NA
</TABLE>
<PAGE>
Page 33 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 336,060 285,519 NA NA 101,275 92,093 NA NA
%CCMD Chevy Chase Bank, FSB 40,690 -41,098 NA NA 5,298 (18,081) NA NA
AABC Access Anytime Bancorp Inc. 1,559 1,450 1.18 1.28 74 40 0.06 0.03
ABBK Abington Bancorp Inc. 4,462 3,801 0.98 1.15 1,136 855 0.30 0.23
ABCL Alliance Bancorp 12,472 12,472 1.45 1.45 3,652 3,415 0.42 0.39
ABCW Anchor BanCorp Wisconsin 20,501 18,352 1.90 2.12 5,250 4,424 0.54 0.46
AFBC Advance Financial Bancorp 957 897 0.89 0.95 272 247 0.28 0.25
AFCB Affiliated Community Bancorp 12,131 11,571 1.72 1.80 3,212 3,041 0.47 0.44
AFED AFSALA Bancorp Inc. 1,204 1,223 0.93 0.92 256 275 0.20 0.21
AHCI Ambanc Holding Co. 2,554 2,045 0.52 0.64 446 441 0.11 0.11
AHM H.F. Ahmanson & Co. 424,992 402,097 3.42 3.71 114,303 121,732 0.97 0.97
ALBC Albion Banc Corp. 340 323 0.43 0.46 102 102 0.13 0.13
ALBK ALBANK Financial Corp. 43,914 43,501 3.17 3.19 9,807 9,739 0.71 0.71
ALLB Alliance Bank (MHC) 2,014 2,014 0.62 0.62 522 522 0.16 0.16
AMFC AMB Financial Corp. 1,013 572 0.62 1.11 225 126 0.24 0.13
ANA Acadiana Bancshares Inc. 2,941 2,768 1.13 1.20 764 674 0.32 0.28
ANDB Andover Bancorp Inc. 13,700 13,347 2.00 2.05 3,702 3,605 0.55 0.54
ANE Alliance Bncp of New England 2,169 1,262 0.51 0.86 602 319 0.23 0.12
ASBI Ameriana Bancorp 3,784 3,298 1.01 1.15 1,029 855 0.31 0.26
ASBP ASB Financial Corp. 1,071 1,067 0.68 0.68 276 276 0.18 0.18
ASFC Astoria Financial Corp. 75,299 69,599 2.86 3.17 22,269 20,902 0.80 0.75
ATSB AmTrust Capital Corp. 288 125 0.25 0.57 64 (4) 0.13 (0.01)
AVND Avondale Financial Corp. -4,697 -3,825 -1.10 -1.34 206 (327) 0.06 (0.10)
BANC BankAtlantic Bancorp Inc. 26,684 11,785 0.35 0.76 5,256 1,579 0.13 0.04
BDJI First Federal Bancorp. 765 770 0.92 0.91 168 168 0.20 0.20
BFD BostonFed Bancorp Inc. 7,030 5,976 1.07 1.26 1,889 1,463 0.35 0.27
BFFC Big Foot Financial Corp. 1,234 1,085 0.46 0.53 178 178 0.07 0.07
BFSB Bedford Bancshares Inc. 1,664 1,654 1.44 1.44 460 458 0.40 0.40
BKC American Bank of Connecticut 8,212 6,927 1.46 1.73 2,165 1,819 0.44 0.37
BKCT Bancorp Connecticut Inc. 6,227 5,360 0.97 1.12 1,745 1,398 0.31 0.25
BKUNA BankUnited Financial Corp. 8,424 6,893 0.42 0.54 2,292 2,016 0.13 0.11
BNKU Bank United Corp. 103,937 99,006 3.07 3.22 46,302 43,717 1.43 1.35
BPLS Bank Plus Corp. 11,979 13,970 0.69 0.61 3,541 3,349 0.18 0.17
BRKL Brookline Bancorp (MHC) 13,726 13,676 NA NA 3,770 3,765 NA NA
BTHL Bethel Bancorp 1,435 1,141 0.74 0.96 302 263 0.19 0.16
BVCC Bay View Capital Corp. 13,819 21,532 1.42 0.90 5,060 7,174 0.24 0.34
BWFC Bank West Financial Corp. 1,076 864 0.33 0.42 208 203 0.08 0.08
BYFC Broadway Financial Corp. 641 295 0.30 0.72 145 129 0.16 0.14
BYS Bay State Bancorp -1,751 679 NA NA (2,844) (409) NA NA
CAFI Camco Financial Corp. 6,454 4,904 1.43 1.88 2,009 1,398 0.53 0.37
CAPS Capital Savings Bancorp Inc. 2,633 2,260 1.16 1.36 819 550 0.42 0.28
CASB Cascade Financial Corp. 3,104 2,926 0.83 0.87 1,106 949 0.29 0.25
CASH First Midwest Financial Inc. 2,316 2,031 0.72 0.83 (513) (584) (0.19) (0.22)
CATB Catskill Financial Corp. 3,828 3,786 0.88 0.88 972 951 0.23 0.23
CAVB Cavalry Bancorp Inc. NA NA NA NA 1,381 985 NA NA
CBCI Calumet Bancorp Inc. 10,210 10,243 2.99 2.98 3,994 3,953 1.17 1.16
CBES CBES Bancorp Inc. 1,098 915 0.97 1.16 237 171 0.25 0.18
CBK Citizens First Financial Corp.1,978 1,235 0.46 0.76 510 350 0.20 0.14
CBSA Coastal Bancorp Inc. 14,266 14,656 2.83 2.75 5,941 6,402 1.14 1.23
CCFH CCF Holding Co. 163 -134 -0.17 0.19 57 (11) 0.06 (0.01)
CEBK Central Co-operative Bank 2,796 2,561 1.31 1.43 663 662 0.34 0.34
CENB Century Bancorp Inc. 1,343 1,343 1.19 1.19 154 154 0.14 0.14
CFB Commercial Federal Corp. 61,485 73,540 2.01 1.72 8,194 19,420 0.20 0.47
CFCP Coastal Financial Corp. 6,443 5,335 0.82 0.99 1,679 1,294 0.26 0.20
CFFC Community Financial Corp. 1,875 1,883 0.74 0.74 539 538 0.21 0.21
CFKY Columbia Financial of Kentucky NA NA NA NA 153 153 NA NA
CFNC Carolina Fincorp Inc. 1,051 1,203 0.65 0.59 25 199 0.01 0.08
CFSB CFSB Bancorp Inc. 11,195 10,186 1.17 1.29 2,830 2,490 0.33 0.29
CFTP Community Federal Bancorp 2,659 2,532 0.58 0.61 734 605 0.17 0.14
CIBI Community Investors Bancorp 905 905 1.05 1.05 227 227 0.26 0.26
CKFB CKF Bancorp Inc. 1,147 871 1.03 1.34 212 211 0.26 0.26
CLAS Classic Bancshares Inc. 1,089 841 0.70 0.89 281 275 0.23 0.23
CMRN Cameron Financial Corp 2,425 2,393 0.97 0.98 610 596 0.25 0.24
CMSB Commonwealth Bancorp Inc. 15,551 10,622 0.67 0.99 3,852 2,492 0.25 0.16
</TABLE>
<PAGE>
Page 34 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC)5,237 4,839 0.95 1.03 1,232 1,232 0.24 0.24
CNIT CENIT Bancorp Inc. 6,406 5,958 1.21 1.30 1,457 1,343 0.30 0.28
CNSB CNS Bancorp Inc. 882 816 0.50 0.54 248 190 0.16 0.12
CNY Carver Bancorp Inc. 1,046 926 0.42 0.48 106 106 0.05 0.05
COFI Charter One Financial 160,059 215,401 1.72 1.24 63,533 60,865 0.49 0.47
CONE Conestoga Bancorp, Inc. 3,210 2,607 0.58 0.71 742 334 0.16 0.07
COOP Cooperative Bankshares Inc. 2,265 2,063 0.64 0.70 615 446 0.19 0.14
CRSB Crusader Holding Corp. NA NA NA NA 885 815 0.28 0.26
CRZY Crazy Woman Creek Bancorp 738 746 0.84 0.83 187 185 0.21 0.21
CSBF CSB Financial Group Inc. 261 246 0.29 0.31 84 84 0.10 0.10
CTZN CitFed Bancorp Inc. 28,908 29,341 2.18 2.15 7,803 8,305 0.58 0.62
CVAL Chester Valley Bancorp Inc. 3,328 3,026 1.38 1.52 904 747 0.41 0.34
DCBI Delphos Citizens Bancorp Inc. 1,642 1,642 0.91 0.91 410 410 0.23 0.23
DIBK Dime Financial Corp. 15,584 15,485 2.91 2.93 2,610 2,631 0.49 0.49
DIME Dime Community Bancorp Inc. 11,718 11,023 0.90 0.96 3,338 3,187 0.28 0.27
DME Dime Bancorp Inc. 146,047 118,082 1.06 1.31 57,249 27,838 0.49 0.24
DNFC D & N Financial Corp. 14,928 12,545 1.34 1.59 3,897 2,967 0.41 0.31
DSL Downey Financial Corp. 50,469 45,022 1.59 1.79 17,565 13,639 0.62 0.48
EBI Equality Bancorp Inc. 1,154 260 NA NA 364 128 NA NA
EBSI Eagle Bancshares 5,288 6,388 1.09 0.90 1,764 1,761 0.30 0.30
EFBC Empire Federal Bancorp Inc. 1,609 1,609 0.67 0.67 403 403 0.17 0.17
EFBI Enterprise Federal Bancorp 2,275 1,952 0.96 1.13 677 474 0.32 0.22
EFC EFC Bancorp Inc. 2,714 2,714 NA NA 800 800 NA NA
EGLB Eagle BancGroup Inc. 584 301 0.26 0.52 201 50 0.18 0.04
EMLD Emerald Financial Corp. 6,561 6,041 0.58 0.63 1,856 1,613 0.18 0.16
EQSB Equitable Federal Savings Bank2,264 2,188 1.70 1.75 607 553 0.46 0.42
ESBF ESB Financial Corp. 5,851 5,826 1.02 1.02 1,550 1,555 0.27 0.27
ESBK Elmira Savings Bank (The) 1,013 820 1.13 1.41 305 286 0.43 0.40
ESX Essex Bancorp Inc. -217 -352 -1.78 -1.78 98 98 (0.32) (0.32)
ETFS East Texas Financial Services 700 632 0.43 0.48 158 131 0.11 0.09
FAB FIRSTFED AMERICA BANCORP INC. 6,819 5,743 0.71 0.84 1,458 1,145 0.18 0.14
FBBC First Bell Bancorp Inc. 7,505 7,279 1.23 1.27 1,926 1,863 0.33 0.32
FBCI Fidelity Bancorp Inc. 1,031 2,953 1.05 0.34 960 960 0.34 0.34
FBCV 1ST Bancorp 1,987 1,358 1.23 1.81 559 365 0.51 0.33
FBER 1st Bergen Bancorp 2,132 2,132 0.80 0.80 519 519 0.21 0.21
FBHC Fort Bend Holding Corp. 2,045 1,441 0.69 0.97 492 292 0.23 0.14
FBNW FirstBank Corp. 1,706 1,044 NA NA 541 340 0.30 0.19
FBSI First Bancshares Inc. 1,826 1,759 0.81 0.85 404 410 0.18 0.18
FCB Falmouth Bancorp Inc. 985 793 0.57 0.73 253 175 0.18 0.12
FCBF FCB Financial Corp. 4,813 4,934 1.43 1.39 1,718 1,596 0.45 0.42
FCBH Virginia Beach Fed. Financial NA NA NA NA 1,011 711 NA NA
FCBK First Coastal Bankshares 4,219 3,255 0.65 0.84 1,011 711 0.20 0.14
FCME First Coastal Corp. 1,280 1,117 0.82 0.93 285 281 0.21 0.21
FDEF First Defiance Financial 5,357 5,159 0.61 0.63 1,508 1,431 0.19 0.18
FED FirstFed Financial Corp. 26,075 25,227 2.34 2.41 8,143 7,715 0.75 0.71
FESX First Essex Bancorp Inc. 10,264 9,340 1.19 1.31 2,698 2,504 0.34 0.32
FFBA First Colorado Bancorp Inc. 19,905 18,914 1.19 1.24 4,806 4,773 0.29 0.29
FFBH First Federal Bancshares of AR5,411 5,128 1.11 1.18 1,420 1,393 0.30 0.29
FFBI First Financial Bancorp Inc. 124 251 0.61 0.30 49 (2) 0.12 -
FFBS FFBS BanCorp Inc. 1,824 1,824 1.20 1.20 451 451 0.30 0.30
FFBZ First Federal Bancorp Inc. 1,831 1,712 0.99 1.05 345 320 0.20 0.19
FFCH First Financial Holdings Inc.15,415 14,903 1.10 1.14 4,101 3,872 0.29 0.27
FFDB FirstFed Bancorp Inc. 1,705 1,705 1.38 1.38 413 413 0.34 0.34
FFDF FFD Financial Corp. 1,580 717 0.52 1.17 165 165 0.12 0.12
FFED Fidelity Federal Bancorp -779 -599 -0.14 -0.20 (2,010) (1,734) (0.64) (0.55)
FFES First Federal of East Hartford5,675 6,284 2.27 2.05 1,349 1,647 0.48 0.59
FFFD North Central Bancshares Inc. 4,133 3,933 1.22 1.28 1,105 1,069 0.34 0.33
FFFL Fidelity Bankshares Inc. (MHC)7,277 6,260 0.93 1.08 2,093 1,656 0.31 0.25
FFHH FSF Financial Corp. 3,233 3,133 1.10 1.12 810 740 0.28 0.26
FFHS First Franklin Corp. 1,877 1,634 0.89 1.03 537 412 0.30 0.23
FFIC Flushing Financial Corp. 8,866 8,691 1.19 1.22 2,225 2,176 0.31 0.30
FFKY First Federal Financial Corp. 6,277 6,119 1.47 1.51 1,650 1,568 0.40 0.38
FFLC FFLC Bancorp Inc. 3,772 3,569 0.93 0.98 991 991 0.26 0.26
FFOH Fidelity Financial of Ohio 4,871 4,689 0.86 0.89 1,203 1,137 0.22 0.21
</TABLE>
<PAGE>
Page 35 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFPB First Palm Beach Bancorp Inc. 9,207 5,883 1.14 1.79 2,086 408 0.40 0.08
FFSL First Independence Corp. 755 755 0.76 0.76 195 195 0.20 0.20
FFSX First Fed SB of Siouxland(MHC)3,282 3,310 1.16 1.15 773 878 0.27 0.31
FFWC FFW Corp. 1,838 1,786 1.26 1.29 498 479 0.35 0.34
FFWD Wood Bancorp Inc. 2,358 2,037 0.74 0.86 577 464 0.21 0.17
FFYF FFY Financial Corp. 7,818 7,702 1.96 1.99 1,968 1,933 0.51 0.50
FGHC First Georgia Holding Inc. 1,821 1,821 0.55 0.55 477 477 0.14 0.14
FIBC Financial Bancorp Inc. 2,769 2,705 1.62 1.66 738 676 0.44 0.40
FISB First Indiana Corp. 18,083 13,682 1.04 1.38 4,418 2,996 0.33 0.22
FKFS First Keystone Financial 2,725 2,413 1.05 1.20 684 569 0.30 0.25
FKKY Frankfort First Bancorp Inc. 328 1,043 0.64 0.18 402 402 0.24 0.24
FLAG FLAG Financial Corp. 2,324 1,828 0.52 0.67 910 934 0.20 0.21
FLFC First Liberty Financial Corp. 9,910 10,323 0.87 0.84 3,756 3,167 0.32 0.27
FLGS Flagstar Bancorp Inc. 25,004 25,004 1.82 1.82 7,753 7,753 0.54 0.54
FLKY First Lancaster Bancshares 487 487 0.53 0.53 122 122 0.14 0.14
FMBD First Mutual Bancorp Inc. 1,289 1,035 0.33 0.40 384 278 0.12 0.09
FMCO FMS Financial Corp. 5,384 5,376 2.20 2.20 1,241 1,241 0.51 0.51
FMSB First Mutual Savings Bank 4,684 4,239 1.00 1.10 1,240 801 0.29 0.19
FNGB First Northern Capital Corp. 6,280 5,896 0.65 0.69 1,629 1,502 0.18 0.17
FOBC Fed One Bancorp 3,096 3,068 1.30 1.31 675 675 0.28 0.28
FPRY First Financial Bancorp 1,313 985 1.09 1.45 257 141 0.28 0.15
FSBI Fidelity Bancorp Inc. 2,791 2,744 1.36 1.38 665 661 0.32 0.32
FSFF First SecurityFed Financial NA NA NA NA 1,453 1,453 0.24 0.24
FSLA First Source Bancorp Inc. 10,133 9,820 NA NA 3,339 2,565 NA NA
FSNJ Bayonne Bancshares Inc. 2,698 3,914 NA NA 1,135 1,135 0.13 0.13
FSPG First Home Bancorp Inc. 4,635 4,548 1.64 1.67 1,206 1,174 0.43 0.42
FSPT FirstSpartan Financial Corp. 6,740 6,671 NA NA 1,877 1,811 0.46 0.44
FSSB First FS&LA of San Bernardino-1,202 -1,205 -3.67 -3.67 (32) (32) (0.10) (0.10)
FSTC First Citizens Corp. 6,149 5,571 1.88 2.08 1,361 1,219 0.46 0.41
FTF Texarkana First Financial Corp3,117 3,063 1.79 1.82 808 808 0.47 0.47
FTFC First Federal Capital Corp. 18,432 14,055 1.42 1.86 4,799 3,616 0.48 0.36
FTNB Fulton Bancorp Inc. 1,283 990 0.60 0.78 223 180 0.14 0.11
FTSB Fort Thomas Financial Corp. 1,211 1,211 0.84 0.84 250 250 0.17 0.17
FWWB First SB of Washington Bancor12,759 12,046 1.25 1.32 3,205 2,939 0.34 0.31
GAF GA Financial Inc. 8,390 7,875 1.11 1.17 1,930 1,825 0.27 0.26
GBNK Gaston Federal Bancorp (MHC) NA NA NA NA 428 360 NA NA
GDW Golden West Financial 373,135 374,681 6.48 6.45 102,371 108,451 1.76 1.86
GFCO Glenway Financial Corp. 2,534 2,520 1.07 1.08 684 670 0.29 0.28
GFED Guaranty Federal Bcshs Inc. 2,440 2,370 NA NA 822 814 0.14 0.14
GLMR Gilmer Financial Svcs, Inc. 23 130 0.68 0.12 (54) (57) (0.30) (0.32)
GOSB GSB Financial Corp. 873 815 NA NA 221 223 0.11 0.11
GPT GreenPoint Financial Corp. 141,563 146,724 1.91 1.85 33,586 38,140 0.45 0.51
GSB Golden State Bancorp Inc. 113,743 129,619 1.87 1.62 32,021 34,926 0.45 0.49
GSBC Great Southern Bancorp Inc. 13,874 12,455 1.52 1.69 3,364 2,907 0.41 0.35
GSFC Green Street Financial Corp. 2,832 2,832 0.68 0.68 692 692 0.17 0.17
GSLA GS Financial Corp. 1,861 1,661 NA NA 499 331 0.16 0.11
GTPS Great American Bancorp 926 925 0.54 0.54 244 244 0.15 0.15
GUPB GFSB Bancorp Inc. 946 946 0.79 0.79 251 253 0.21 0.21
HALL Hallmark Capital Corp. 2,775 2,638 0.90 0.94 679 605 0.22 0.20
HARB Harbor Florida Bancshares Inc14,410 13,834 NA NA 3,389 3,372 NA NA
HARL Harleysville Savings Bank 3,484 3,484 2.03 2.03 894 894 0.52 0.52
HARS Harris Financial Inc. (MHC) 18,811 12,631 0.36 0.55 5,749 3,501 0.17 0.10
HAVN Haven Bancorp Inc. 9,927 9,783 1.09 1.11 2,149 1,920 0.24 0.21
HBBI Home Building Bancorp 329 316 1.09 1.14 69 64 0.24 0.22
HBEI Home Bancorp of Elgin Inc. 2,464 2,464 0.38 0.38 510 510 0.08 0.08
HBFW Home Bancorp 2,946 2,878 1.23 1.26 839 795 0.37 0.35
HBNK Highland Bancorp Inc. 6,756 5,898 2.46 2.82 1,924 1,736 0.79 0.71
HBS Haywood Bancshares Inc. 2,201 2,197 1.77 1.77 635 631 0.51 0.51
HBSC Heritage Bancorp Inc. NA NA NA NA 651 652 NA NA
HCBB HCB Bancshares Inc. 579 575 NA NA 171 163 0.07 0.07
HCBC High Country Bancorp Inc. 314 350 NA NA 195 195 0.16 0.16
HCFC Home City Financial Corp. NA NA NA NA 212 212 0.23 0.23
HEMT HF Bancorp Inc. -471 1,320 0.22 -0.09 (464) (519) (0.07) (0.08)
HFBC HopFed Bancorp Inc. 2,633 2,633 NA NA 968 968 NA NA
</TABLE>
<PAGE>
Page 36 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFFB Harrodsburg First Fin Bancorp 1,481 1,478 0.79 0.79 360 357 0.20 0.20
HFFC HF Financial Corp. 6,200 5,781 1.26 1.35 1,416 1,291 0.31 0.28
HFGI Harrington Financial Group -88 243 0.07 -0.02 (241) (333) (0.07) (0.10)
HFNC HFNC Financial Corp. 12,058 8,326 0.52 0.75 3,159 2,569 0.20 0.16
HFSA Hardin Bancorp Inc. 868 750 0.93 1.08 241 192 0.30 0.24
HFWA Heritage Financial Corp. NA NA NA NA 1,159 672 NA NA
HHFC Harvest Home Financial Corp. 558 553 0.62 0.62 127 127 0.14 0.14
HIFS Hingham Instit. for Savings 2,739 2,739 2.05 2.05 714 714 0.53 0.53
HLFC Home Loan Financial Corp. 822 822 NA NA 182 182 NA NA
HMLK Hemlock Federal Financial Corp1,707 1,709 NA NA 404 404 0.21 0.21
HMNF HMN Financial Inc. 5,767 4,105 0.69 0.97 1,663 843 0.28 0.14
HOMF Home Federal Bancorp 9,978 8,121 1.50 1.84 2,752 1,821 0.50 0.33
HPBC Home Port Bancorp Inc. 3,001 3,330 1.82 1.63 485 874 0.26 0.47
HRBF Harbor Federal Bancorp Inc. 1,669 1,607 0.98 1.02 439 439 0.27 0.27
HRZB Horizon Financial Corp. 8,222 8,167 1.08 1.09 2,109 2,176 0.28 0.29
HTHR Hawthorne Financial Corp. 10,096 11,633 1.81 1.54 1,833 1,830 0.32 0.32
HWEN Home Financial Bancorp 389 309 0.37 0.45 133 130 0.16 0.16
HZFS Horizon Financial Svcs Corp. 789 613 0.72 0.93 230 190 0.27 0.22
IBSF IBS Financial Corp. 6,007 6,007 0.56 0.56 1,573 1,573 0.15 0.15
ICBC Independence Comm. Bank Corp. NA NA NA NA 7,445 7,424 NA NA
IFSB Independence Federal Svgs Bank2,048 322 0.26 1.61 788 134 0.62 0.11
INBI Industrial Bancorp Inc. 5,251 5,251 1.07 1.07 1,358 1,358 0.28 0.28
IPSW Ipswich Savings Bank 2,539 1,932 0.78 1.01 804 537 0.31 0.21
ITLA ITLA Capital Corp. 13,080 13,080 1.64 1.64 3,509 3,509 0.44 0.44
IWBK InterWest Bancorp Inc. 20,173 17,158 2.07 2.44 4,630 4,117 0.54 0.48
JOAC Joachim Bancorp Inc. 264 264 0.36 0.36 60 60 0.09 0.09
JSB JSB Financial Inc. 38,306 33,086 3.25 3.75 7,664 7,011 0.75 0.69
JSBA Jefferson Savings Bancorp 9,806 8,696 0.89 1.00 2,196 1,787 0.22 0.18
JXSB Jacksonville Savings Bk (MHC) 969 629 0.33 0.51 251 100 0.13 0.05
JXVL Jacksonville Bancorp Inc. 3,356 3,356 1.36 1.36 671 671 0.28 0.28
KFBI Klamath First Bancorp 8,518 8,518 0.89 0.89 2,208 2,208 0.23 0.23
KNK Kankakee Bancorp Inc. 3,035 2,955 1.98 2.03 793 770 0.54 0.52
KSAV KS Bancorp Inc. 1,221 1,221 1.30 1.30 252 252 0.27 0.27
KSBK KSB Bancorp Inc. 1,642 1,599 1.34 1.38 419 419 0.34 0.34
KYF Kentucky First Bancorp Inc. 981 971 0.77 0.78 246 246 0.20 0.20
LARK Landmark Bancshares Inc. 2,489 2,178 1.24 1.41 612 480 0.36 0.28
LARL Laurel Capital Group Inc. 3,029 2,975 1.29 1.32 834 772 0.36 0.33
LFBI Little Falls Bancorp Inc. 1,870 1,789 0.74 0.77 459 459 0.19 0.19
LFCO Life Financial Corp. 14,176 14,739 2.36 2.28 3,717 3,717 0.54 0.54
LFED Leeds Federal Bankshares (MHC)3,432 3,432 0.66 0.66 864 864 0.17 0.17
LISB Long Island Bancorp Inc. 52,488 42,570 1.83 2.25 13,937 11,325 0.60 0.49
LO Local Financial Corp. -30,045 -4,381 NA 0.00 NA NA NA NA
LOGN Logansport Financial Corp. 1,264 1,277 1.01 0.99 304 304 0.23 0.23
LONF London Financial Corp. 411 381 0.80 0.86 121 117 0.25 0.24
LSBI LSB Financial Corp. 1,654 1,484 1.60 1.78 445 389 0.48 0.42
LSBX Lawrence Savings Bank 8,740 8,631 1.92 1.94 1,931 1,897 0.43 0.42
LVSB Lakeview Financial Corp. 7,060 4,446 0.95 1.55 2,548 972 0.63 0.24
LXMO Lexington B&L Financial Corp. 697 694 0.69 0.69 121 120 0.12 0.12
MAFB MAF Bancorp Inc. 37,829 36,848 2.34 2.40 9,167 8,663 0.59 0.56
MARN Marion Capital Holdings 2,430 2,430 1.33 1.33 521 521 0.29 0.29
MASB MASSBANK Corp. 10,528 9,523 2.59 2.86 2,834 2,306 0.77 0.63
MBBC Monterey Bay Bancorp Inc. 1,734 1,600 0.51 0.55 439 455 0.14 0.15
MBLF MBLA Financial Corp. 1,926 1,912 1.44 1.45 505 500 0.39 0.39
MBSP Mitchell Bancorp Inc. 503 503 0.59 0.59 136 136 0.16 0.16
MCBN Mid-Coast Bancorp Inc. 475 439 0.62 0.67 107 95 0.15 0.13
MDBK Medford Bancorp Inc. 11,807 11,135 2.34 2.48 3,248 2,812 0.68 0.59
MECH MECH Financial Inc. 13,201 13,199 2.52 2.52 2,164 2,270 0.41 0.43
METF Metropolitan Financial Corp. 6,579 5,768 0.82 0.93 1,987 1,452 0.28 0.20
MFBC MFB Corp. 2,172 2,138 1.27 1.29 666 647 0.40 0.39
MFFC Milton Federal Financial Corp.1,406 1,246 0.58 0.66 414 300 0.20 0.14
MFLR Mayflower Co-operative Bank 1,399 1,264 1.41 1.57 403 334 0.45 0.37
MFSL Maryland Federal Bancorp 8,775 8,690 1.31 1.32 1,472 1,780 0.22 0.27
MIFC Mid-Iowa Financial Corp. 1,533 1,373 0.78 0.87 329 313 0.18 0.17
MIVI Mississippi View Holding Co. 744 732 0.94 0.95 177 175 0.24 0.24
</TABLE>
<PAGE>
Page 37 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONT Montgomery Financial Corp. 831 831 NA NA 257 257 0.17 0.17
MRKF Market Financial Corp. 635 635 0.52 0.52 147 147 0.12 0.12
MSBF MSB Financial Inc. 1,189 1,055 0.89 1.00 311 264 0.27 0.23
MSBK Mutual Savings Bank FSB -8,640 -3,148 -0.74 -2.05 543 150 0.13 0.04
MWBI Midwest Bancshares Inc. 1,329 1,163 1.05 1.20 311 288 0.28 0.26
MWBX MetroWest Bank 7,673 7,584 0.54 0.54 1,882 1,843 0.13 0.13
MYST Mystic Financial Inc. NA NA NA NA 467 429 NA NA
NASB NASB Financial Inc. 12,085 9,866 4.39 5.38 3,133 2,776 1.40 1.24
NBCP Niagara Bancorp Inc. (MHC) NA NA NA NA 2,946 2,946 NA NA
NBN Northeast Bancorp 1,985 1,952 0.75 0.78 732 708 0.27 0.26
NBSI North Bancshares Inc. 562 529 0.38 0.40 155 130 0.12 0.10
NEIB Northeast Indiana Bancorp 2,243 2,243 1.36 1.36 544 544 0.34 0.34
NEP Northeast PA Financial Corp. NA NA NA NA (2,491) 605 NA NA
NHTB New Hampshire Thrift Bncshrs 2,840 2,628 1.25 1.35 703 702 0.33 0.33
NMSB NewMil Bancorp Inc. 2,833 2,822 0.67 0.68 750 686 0.18 0.16
NSLB NS&L Bancorp Inc. 407 407 0.63 0.63 106 106 0.16 0.16
NSSY NSS Bancorp Inc. 5,959 4,812 1.90 2.34 1,438 1,224 0.56 0.48
NTBK Net.B@nk Inc. -3,928 -3,928 -1.00 -1.00 (151) (151) (0.02) (0.02)
NTMG Nutmeg Federal S&LA 929 581 0.20 0.46 242 119 0.13 0.03
NWEQ Northwest Equity Corp. 1,020 979 1.30 1.35 285 269 0.37 0.35
NWSB Northwest Bancorp Inc. (MHC) 20,533 20,509 0.43 0.44 5,719 5,468 0.12 0.11
OCFC Ocean Financial Corp. 13,945 14,028 0.96 0.95 3,509 3,507 0.25 0.25
OCN Ocwen Financial Corp. 84,237 21,591 0.38 1.43 22,346 612 0.36 0.01
OFCP Ottawa Financial Corp. 7,642 7,082 1.26 1.36 1,831 1,563 0.32 0.27
OHSL OHSL Financial Corp. 2,045 1,907 0.79 0.84 563 505 0.23 0.21
OSFS Ohio State Financial Services 340 340 NA NA 80 80 NA NA
OTFC Oregon Trail Financial Corp. NA NA NA NA 914 914 NA NA
PBCI Pamrapo Bancorp Inc. 4,913 4,752 1.67 1.73 1,155 1,155 0.41 0.41
PBCT People's Bank (MHC) 95,800 51,925 0.85 1.56 25,400 15,195 0.41 0.25
PBHC Pathfinder Bancorp Inc. (MHC) 1,751 1,340 0.48 0.62 395 246 0.14 0.09
PBKB People's Bancshares Inc. 5,263 2,356 0.69 1.54 1,440 631 0.43 0.19
PBOC PBOC Holdings Inc. 10,942 7,895 0.18 1.14 NA NA NA NA
PCBC Perry County Financial Corp. 857 857 1.11 1.11 207 207 0.26 0.26
PDB Piedmont Bancorp Inc. 1,566 1,540 0.57 0.58 447 433 0.16 0.15
PEDE Great Pee Dee Bancorp NA NA NA NA 341 341 0.17 0.17
PEEK Peekskill Financial Corp. 1,906 1,948 0.68 0.66 437 479 0.16 0.18
PERM Permanent Bancorp Inc. 2,631 2,609 0.62 0.62 705 671 0.17 0.16
PFDC Peoples Bancorp 4,369 4,369 1.28 1.28 1,120 1,120 0.33 0.33
PFED Park Bancorp Inc. 1,621 1,583 0.71 0.72 569 567 0.26 0.26
PFFB PFF Bancorp Inc. 15,980 14,930 0.89 0.95 4,259 3,994 0.26 0.24
PFFC Peoples Financial Corp. 900 564 0.41 0.64 411 85 0.29 0.06
PFNC Progress Financial Corp. 3,744 3,348 0.76 0.85 996 857 0.22 0.19
PFSB PennFed Financial Services In11,107 10,765 1.12 1.16 3,048 2,776 0.31 0.28
PFSL Pocahontas Bancorp Inc. 2,397 2,349 NA NA 668 655 NA NA
PHBK Peoples Heritage Finl Group 76,422 75,874 1.36 1.37 20,031 20,080 0.36 0.36
PHFC Pittsburgh Home Financial Corp2,198 1,876 1.02 1.19 510 474 0.28 0.26
PHSB Peoples Home Savings Bk (MHC) 1,725 1,554 NA NA 436 359 0.16 0.13
PLSK Pulaski Savings Bank (MHC) 1,161 1,161 NA NA 290 290 0.14 0.14
PRBC Prestige Bancorp Inc. 733 719 0.74 0.76 153 153 0.16 0.16
PROV Provident Financial Holdings 4,954 2,454 0.54 1.09 1,201 578 0.27 0.13
PSBK Progressive Bank Inc. 8,561 8,748 2.22 2.18 2,032 2,229 0.51 0.56
PSFC Peoples-Sidney Financial Corp.1,268 1,268 NA NA 332 332 0.20 0.20
PSFI PS Financial Inc. 905 1,558 0.73 0.48 414 399 0.21 0.20
PTRS Potters Financial Corp. 981 948 0.98 1.01 222 208 0.23 0.22
PULB Pulaski Bank, Svgs Bank (MHC) 2,004 1,679 0.80 0.95 503 393 0.24 0.19
PULS Pulse Bancorp 5,637 5,572 1.74 1.76 1,363 1,363 0.42 0.42
PVFC PVF Capital Corp. 5,151 4,883 1.76 1.86 1,334 1,205 0.48 0.43
PVSA Parkvale Financial Corp. 10,848 10,847 2.06 2.06 2,811 2,810 0.53 0.53
PWBK Pennwood Bancorp Inc. 366 379 0.54 0.52 29 29 0.05 0.05
QCBC Quaker City Bancorp Inc. 6,296 6,096 1.32 1.36 1,718 1,669 0.37 0.36
QCFB QCF Bancorp Inc. 2,595 2,564 2.16 2.19 682 651 0.60 0.57
QCSB Queens County Bancorp Inc. 22,386 22,028 1.59 1.62 6,255 6,180 0.46 0.45
RARB Raritan Bancorp Inc. 3,941 3,879 1.54 1.56 1,003 1,003 0.40 0.40
RCBK Richmond County Financial Corp NA NA NA NA (6,611) 6,153 NA NA
</TABLE>
<PAGE>
Page 38 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REDF RedFed Bancorp Inc. 11,296 11,641 1.55 1.51 3,222 3,318 0.42 0.43
RELI Reliance Bancshares Inc. 471 457 0.20 0.21 148 148 0.07 0.07
RELY Reliance Bancorp Inc. 18,624 17,663 1.88 1.99 4,658 4,663 0.48 0.48
RIVR River Valley Bancorp 1,287 1,145 1.05 1.17 321 259 0.28 0.23
ROSE TR Financial Corp. 36,697 32,481 1.84 2.08 9,733 8,517 0.56 0.49
RSLN Roslyn Bancorp Inc. 44,253 42,280 1.07 1.12 13,327 11,500 0.34 0.29
RVSB Riverview Bancorp Inc. 3,924 3,749 NA NA 1,350 1,237 0.23 0.21
SBAN SouthBanc Shares Inc. 2,132 2,285 NA NA 757 711 NA NA
SBFL SB of the Finger Lakes (MHC) 933 785 0.22 0.26 266 221 0.07 0.06
SBOS Boston Bancorp (The) 37,152 18,104 3.40 6.98 14,315 5,073 2.69 0.95
SCBS Southern Community Bancshares 798 803 0.83 0.82 154 154 0.16 0.16
SCCB S. Carolina Community Bancshrs 463 463 0.74 0.74 122 122 0.22 0.22
SFED SFS Bancorp Inc. 1,113 1,077 0.94 0.97 270 270 0.23 0.23
SFFC StateFed Financial Corp. 1,097 1,097 0.71 0.71 268 268 0.17 0.17
SFIN Statewide Financial Corp. 5,507 5,462 1.28 1.29 1,304 1,304 0.31 0.31
SFSB SuburbFed Financial Corp. 2,729 2,092 1.54 2.01 586 413 0.42 0.30
SFSL Security First Corp. 9,311 9,318 1.11 1.11 2,460 2,460 0.29 0.29
SGVB SGV Bancorp Inc. 1,550 1,291 0.54 0.65 491 490 0.20 0.20
SHEN First Shenango Bancorp Inc. 4,338 4,435 2.15 2.11 889 996 0.43 0.48
SHSB SHS Bancorp Inc. 662 618 NA NA 203 163 0.27 0.22
SIB Staten Island Bancorp Inc. 19,219 35,169 NA NA 10,597 10,218 0.25 0.24
SISB SIS Bancorp Inc. 10,828 13,907 2.24 1.77 4,076 3,910 0.58 0.56
SKAN Skaneateles Bancorp Inc. 1,607 1,573 1.06 1.08 347 333 0.23 0.22
SKBO First Carnegie Deposit (MHC) 937 830 NA NA 127 92 0.06 0.04
SMBC Southern Missouri Bancorp Inc.1,126 1,065 0.67 0.70 163 156 0.10 0.10
SOBI Sobieski Bancorp Inc. 490 485 0.64 0.65 125 120 0.17 0.16
SOPN First Savings Bancorp Inc. 5,200 5,200 1.30 1.30 1,354 1,354 0.34 0.34
SOSA Somerset Savings Bank 7,644 7,405 0.43 0.45 2,665 2,556 0.16 0.15
SPBC St. Paul Bancorp Inc. 49,362 48,359 1.40 1.42 12,138 11,428 0.35 0.33
SRN Southern Banc Co. 514 514 0.43 0.43 149 149 0.13 0.13
SSB Scotland Bancorp Inc. 963 956 0.57 0.57 146 146 0.09 0.09
SSFC South Street Financial Corp. 1,767 1,678 NA 0.42 260 213 0.06 0.05
SSM Stone Street Bancorp Inc. 1,469 1,580 0.84 0.78 463 463 0.25 0.25
STFR St. Francis Capital Corp. 12,966 11,469 2.17 2.45 3,583 2,297 0.68 0.44
STSA Sterling Financial Corp. 10,041 8,856 1.15 1.31 2,679 2,217 0.35 0.29
SVRN Sovereign Bancorp Inc. 78,598 107,375 0.81 0.56 13,027 33,309 0.09 0.25
SWBI Southwest Bancshares Inc. 4,300 4,200 1.52 1.56 1,185 1,069 0.43 0.39
SWCB Sandwich Bancorp Inc. 4,993 4,802 2.39 2.49 1,180 1,077 0.58 0.53
SZB SouthFirst Bancshares Inc. 674 751 0.88 0.78 175 118 0.18 0.12
THR Three Rivers Financial Corp. 835 773 1.00 1.08 188 163 0.24 0.21
THRD TF Financial Corp. 4,703 3,971 1.08 1.27 993 945 0.31 0.30
TPNZ Tappan Zee Financial Inc. 1,097 1,026 0.72 0.77 334 298 0.23 0.21
TRIC Tri-County Bancorp Inc. 904 930 0.77 0.74 232 227 0.18 0.18
TSBK Timberland Bancorp Inc. 3,859 3,581 NA NA 1,414 1,346 NA NA
TSBS Peoples Bancorp Inc. 7,211 5,529 NA NA 1,703 1,703 NA NA
TSH Teche Holding Co. 3,750 3,713 1.13 1.14 996 967 0.30 0.29
TWIN Twin City Bancorp 1,111 919 0.73 0.89 284 226 0.23 0.18
UBMT United Financial Corp. 1,276 1,335 NA NA 495 554 - NA
UCBC Union Community Bancorp NA NA NA NA 537 537 0.19 0.19
UFRM United Federal Savings Bank 1,749 1,164 0.37 0.55 470 411 0.14 0.12
UPFC United PanAm Financial Corp. 6,248 -10,994 -0.93 0.53 NA NA NA NA
USAB USABancshares Inc. 135 237 0.11 -0.03 413 388 0.32 0.30
UTBI United Tennessee Bankshares NA NA NA NA 318 318 NA NA
WAMU Washington Mutual Inc. 558,474 859,214 2.26 1.45 256,471 254,619 0.68 0.68
WAYN Wayne Savings Bancshares (MHC)1,849 1,695 0.69 0.75 388 357 0.15 0.14
WBST Webster Financial Corp. 52,066 52,531 1.95 1.92 15,533 13,447 0.55 0.48
WCBI Westco Bancorp Inc. 4,806 4,410 1.65 1.79 1,177 1,085 0.44 0.41
WCFB Webster City Federal SB (MHC) 1,345 1,345 0.64 0.64 330 330 0.16 0.16
WEFC Wells Financial Corp. 2,307 2,204 1.16 1.21 658 605 0.34 0.31
WEHO Westwood Homestead Fin. Corp. 828 1,297 NA 0.32 306 277 0.12 0.11
WES Westcorp 16,689 -21,493 -0.81 0.64 (12,203) (13,681) (0.46) (0.52)
WFI Winton Financial Corp. 3,637 2,858 0.70 0.89 1,002 752 0.24 0.18
WFSL Washington Federal Inc. 109,589 107,461 2.03 2.07 27,962 26,928 0.53 0.51
WHGB WHG Bancshares Corp. 668 678 0.51 0.50 119 119 0.09 0.09
</TABLE>
<PAGE>
Page 39 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 247 357 0.19 0.12 435 323 0.19 0.14
WRNB Warren Bancorp Inc. 6,299 5,825 0.74 0.80 1,478 1,438 0.18 0.18
WSB Washington Savings Bank, FSB 2,017 1,456 0.32 0.44 431 337 0.09 0.07
WSBI Warwick Community Bancorp NA NA NA NA (600) 510 NA NA
WSFS WSFS Financial Corp. 16,752 16,262 1.30 1.33 4,431 4,133 0.35 0.33
WSTR WesterFed Financial Corp. 7,406 7,452 1.34 1.32 1,360 1,677 0.24 0.30
WVFC WVS Financial Corp. 3,688 3,712 1.06 1.05 874 874 0.25 0.25
WYNE Wayne Bancorp Inc. 1,845 1,846 0.98 0.98 395 395 0.22 0.22
YFCB Yonkers Financial Corp. 3,033 2,949 1.04 1.08 688 674 0.25 0.24
YFED York Financial Corp. 10,340 8,381 0.91 1.11 2,236 1,739 0.24 0.19
- --------------------------------------------------------------------------------------------------------------------------
Average 13,317 13,187 1.08 1.16 3,818 3,564 0.30 0.27
</TABLE>
<PAGE>
Page 40 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
---------------------------------------------------------------------------------------
Net Core Core Net Core Core
IncomeCore Income EPS EPS Income Income EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 261 246 0.29 0.31 84 84 0.10 0.10
FLKY First Lancaster Bancshares 487 487 0.53 0.53 122 122 0.14 0.14
GLMR Gilmer Financial Svcs, Inc. 23 130 0.68 0.12 (54) (57) (0.30) (0.32)
HBBI Home Building Bancorp 329 316 1.09 1.14 69 64 0.24 0.22
HWEN Home Financial Bancorp 389 309 0.37 0.45 133 130 0.16 0.16
LONF London Financial Corp. 411 381 0.80 0.86 121 117 0.25 0.24
MBSP Mitchell Bancorp Inc. 503 503 0.59 0.59 136 136 0.16 0.16
PWBK Pennwood Bancorp Inc. 366 379 0.54 0.52 29 29 0.05 0.05
RELI Reliance Bancshares Inc. 471 457 0.20 0.21 148 148 0.07 0.07
SCCB S. Carolina Community Bancshrs 463 463 0.74 0.74 122 122 0.22 0.22
- ------------------------------- -----------------------------------------------------------------------------------
Average 370 367 0.58 0.55 91 90 0.11 0.10
Median 400 380 0.57 0.53 122 120 0.15 0.15
Maximum 503 503 1.09 1.14 148 148 0.25 0.24
Minimum 23 130 0.20 0.12 (54) (57) (0.30) (0.32)
Farnsworth Bancorp, Inc. NA NA NA NA NA NA NA NA
Variance to the Comparable MedianNA NA NA NA NA NA NA NA
</TABLE>
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank NA NA NA NA NA NA NA NA NA NA NA
%CCMD Chevy Chase Bank, FSB NA NA NA NA NA NA NA NA NA NA NA
AABC Access Anytime Bancorp Inc. 12.00 14.61 50.00 9.38 10.17 100.00 158.31 158.31 12.81 0.00 0.00
ABBK Abington Bancorp Inc. 18.25 65.15 15.21 15.87 18.62 19.84 188.14 207.15 11.83 1.10 26.09
ABCL Alliance Bancorp 26.50 212.64 15.77 18.28 18.28 16.99 161.00 162.88 13.83 1.66 30.23
ABCW Anchor BanCorp Wisconsin 40.47 362.71 18.74 19.09 21.30 21.99 283.40 288.04 18.14 0.89 14.62
AFBC Advance Financial Bancorp 18.50 19.86 16.52 19.47 20.79 18.50 127.41 127.41 17.95 1.73 42.11
AFCB Affiliated Community Bancorp 39.38 260.37 20.94 21.88 22.89 22.37 220.84 221.83 22.71 1.52 30.00
AFED AFSALA Bancorp Inc. 19.75 27.22 24.69 21.47 21.24 23.51 120.06 120.06 16.41 1.42 22.83
AHCI Ambanc Holding Co. 18.75 79.85 42.61 29.30 36.06 42.61 131.39 131.39 15.36 1.28 25.00
AHM H.F. Ahmanson & Co. 74.94 8,223.47 19.31 20.20 21.91 19.31 276.83 376.19 15.08 1.17 23.72
ALBC Albion Banc Corp. 9.50 7.14 18.27 20.65 22.09 18.27 114.73 114.73 9.80 1.26 29.70
ALBK ALBANK Financial Corp. 52.00 668.37 18.31 16.30 16.40 18.31 182.20 232.97 16.34 1.62 21.63
ALLB Alliance Bank (MHC) 34.00 111.27 53.13 54.84 54.84 53.13 380.74 380.74 40.79 1.06 58.06
AMFC AMB Financial Corp. 18.25 16.71 19.01 16.44 29.44 35.10 117.44 117.44 16.56 1.53 23.42
ANA Acadiana Bancshares Inc. 23.38 59.74 18.26 19.48 20.69 20.87 133.72 133.72 20.51 1.88 33.33
ANDB Andover Bancorp Inc. 34.13 221.04 15.51 16.65 17.06 15.80 200.97 200.97 15.94 2.11 28.10
ANE Alliance Bncp of New England 15.00 37.39 16.30 17.44 29.41 31.25 189.63 194.30 15.12 0.89 14.52
ASBI Ameriana Bancorp 19.50 63.42 15.73 16.96 19.31 18.75 140.29 142.96 16.32 3.28 54.78
ASBP ASB Financial Corp. 16.25 26.57 22.57 23.90 23.90 22.57 152.15 152.15 23.13 2.46 58.82
ASFC Astoria Financial Corp. 54.88 1,446.85 17.15 17.31 19.19 18.29 166.89 235.82 13.28 1.46 20.50
ATSB AmTrust Capital Corp. 15.50 7.91 29.81 27.19 62.00 NM 105.73 106.82 11.45 1.29 35.09
AVND Avondale Financial Corp. 17.25 57.33 71.88 NM NM NM 124.28 124.28 9.45 0.00 0.00
BANC BankAtlantic Bancorp Inc. 13.25 426.01 25.48 17.43 37.86 82.81 201.37 240.47 12.40 0.73 NM
BDJI First Federal Bancorp. 19.25 19.22 24.06 21.15 20.92 24.06 155.87 155.87 16.98 0.00 0.00
BFD BostonFed Bancorp Inc. 23.75 128.79 16.96 18.85 22.20 21.99 149.47 155.03 12.48 1.68 22.22
BFFC Big Foot Financial Corp. 19.38 48.68 69.20 36.56 42.12 69.20 127.13 127.13 23.24 0.00 0.00
BFSB Bedford Bancshares Inc. 29.00 33.32 18.13 20.14 20.14 18.13 155.91 155.91 21.76 1.93 38.89
BKC American Bank of Connecticut 27.00 125.61 15.34 15.61 18.49 18.24 213.95 220.95 19.29 2.82 46.24
BKCT Bancorp Connecticut Inc. 20.13 102.64 16.23 17.97 20.75 20.13 213.19 213.19 21.39 2.68 43.75
BKUNA BankUnited Financial Corp. 17.50 270.69 33.65 32.41 41.67 39.77 185.58 213.94 8.14 0.00 0.00
BNKU Bank United Corp. 51.88 1,639.02 9.07 16.11 16.90 9.61 250.97 277.70 12.50 1.23 18.63
BPLS Bank Plus Corp. 12.75 246.93 17.71 20.90 18.48 18.75 133.23 145.55 5.86 0.00 0.00
BRKL Brookline Bancorp (MHC) 16.31 474.63 NA NA NA NA 174.84 174.84 58.07 0.00 NA
BTHL Bethel Bancorp 12.50 15.15 16.45 13.02 16.89 19.53 91.17 108.60 6.89 2.56 20.83
BVCC Bay View Capital Corp. 31.38 635.12 32.68 34.86 22.10 23.07 163.41 255.29 11.89 1.28 40.00
BWFC Bank West Financial Corp. 14.50 38.04 45.31 34.52 43.94 45.31 162.37 162.37 21.12 1.66 49.21
</TABLE>
Page 1 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BYFC Broadway Financial Corp. 11.25 9.71 17.58 15.63 37.50 20.09 74.65 74.65 7.56 1.78 27.78
BYS Bay State Bancorp 27.75 70.35 NA NA NA NA 102.70 102.70 23.82 0.00 NA
CAFI Camco Financial Corp. 29.75 108.45 14.03 15.82 20.80 20.10 190.46 202.93 18.84 1.95 28.13
CAPS Capital Savings Bancorp Inc. 21.75 41.14 12.95 15.99 18.75 19.42 175.12 175.12 17.74 1.10 17.65
CASB Cascade Financial Corp. 19.75 67.14 17.03 22.70 23.80 19.75 221.16 221.16 15.44 0.00 0.00
CASH First Midwest Financial Inc. 23.25 61.53 NM 28.01 32.29 NM 146.04 164.31 15.18 2.07 50.60
CATB Catskill Financial Corp. 17.63 78.62 19.16 20.03 20.03 19.16 113.42 113.42 26.57 1.82 34.09
CAVB Cavalry Bancorp Inc. 22.75 171.50 NA NA NA NA 171.96 171.96 48.88 0.00 NA
CBCI Calumet Bancorp Inc. 36.75 115.45 7.85 12.33 12.29 7.92 134.62 134.62 23.55 0.00 0.00
CBES CBES Bancorp Inc. 20.63 19.38 20.63 17.78 21.26 28.65 116.99 116.99 16.65 1.94 34.48
CBK Citizens First Financial Corp. 20.13 51.03 25.16 26.48 43.75 35.94 131.79 131.79 18.24 0.00 0.00
CBSA Coastal Bancorp Inc. 38.25 192.83 8.39 13.91 13.52 7.77 176.67 204.98 6.49 1.26 17.45
CCFH CCF Holding Co. 22.00 19.74 91.67 115.79 NM NM 170.54 170.54 13.79 2.91 359.32
CEBK Central Co-operative Bank 27.88 54.77 20.50 19.49 21.28 20.50 151.91 168.02 14.92 1.15 22.38
CENB Century Bancorp Inc. 20.25 25.74 36.16 17.02 17.02 36.16 138.89 138.89 24.66 3.36 896.37
CFB Commercial Federal Corp. 33.25 1,397.98 41.56 19.33 16.54 17.69 227.27 259.97 15.71 0.66 11.83
CFCP Coastal Financial Corp. 20.00 124.96 19.23 20.20 24.39 25.00 355.24 355.24 21.42 1.35 27.27
CFFC Community Financial Corp. 14.50 37.11 17.26 19.59 19.59 17.26 148.57 149.18 20.25 1.93 37.84
CFKY Columbia Financial of Kentucky 15.00 40.07 NA NA NA NA NA NA NA 0.00 NA
CFNC Carolina Fincorp Inc. 16.50 31.44 NM 27.97 25.38 51.56 118.71 118.71 26.54 1.46 38.98
CFSB CFSB Bancorp Inc. 26.63 217.84 20.17 20.64 22.76 22.95 334.91 334.91 25.86 1.78 32.65
CFTP Community Federal Bancorp 17.50 79.23 25.74 28.69 30.17 31.25 118.56 118.56 31.18 1.83 460.66
CIBI Community Investors Bancorp 20.50 18.24 19.71 19.52 19.52 19.71 163.22 163.22 17.93 1.56 29.21
CKFB CKF Bancorp Inc. 19.00 16.25 18.27 14.18 18.45 18.27 111.31 111.31 25.96 2.63 37.31
CLAS Classic Bancshares Inc. 15.50 20.15 16.85 17.42 22.14 16.85 100.78 118.14 15.17 1.81 31.46
CMRN Cameron Financial Corp 20.38 52.18 20.38 20.79 21.01 21.22 113.76 113.76 23.64 1.37 28.57
CMSB Commonwealth Bancorp Inc. 24.25 389.49 24.25 24.49 36.19 37.89 180.84 226.21 16.50 1.32 29.29
CMSV Community Savings Bnkshrs(MHC) 34.50 175.95 35.94 33.50 36.32 35.94 208.84 208.84 23.13 2.61 87.38
CNIT CENIT Bancorp Inc. 23.25 115.90 19.38 17.88 19.21 20.76 217.90 236.28 15.76 1.72 26.92
CNSB CNS Bancorp Inc. 17.50 28.78 27.34 32.41 35.00 36.46 119.54 119.54 29.52 1.37 42.59
CNY Carver Bancorp Inc. 13.25 30.66 66.25 27.60 31.55 66.25 85.15 88.22 7.02 0.00 10.42
COFI Charter One Financial 35.63 4,564.83 18.18 28.73 20.71 18.95 318.36 339.29 23.46 1.57 39.37
CONE Conestoga Bancorp, Inc. NA NA NA NA NA NA NA NA NA NA 28.17
COOP Cooperative Bankshares Inc. 17.88 53.36 23.52 25.54 27.93 31.92 183.15 183.15 13.99 0.00 0.00
CRSB Crusader Holding Corp. 16.06 58.63 14.34 NA NA 15.45 264.63 NA 28.96 0.00 NA
CRZY Crazy Woman Creek Bancorp 18.13 17.31 21.58 21.84 21.58 21.58 119.01 119.01 28.06 2.21 48.19
CSBF CSB Financial Group Inc. 13.75 11.54 34.38 44.35 47.41 34.38 103.93 110.18 24.06 0.00 0.00
</TABLE>
Page 2 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CTZN CitFed Bancorp Inc. 49.81 651.90 21.47 23.17 22.85 20.09 294.93 320.13 18.45 0.72 12.25
CVAL Chester Valley Bancorp Inc. 31.88 69.77 19.44 20.97 23.10 23.44 233.69 233.69 20.25 1.38 31.55
DCBI Delphos Citizens Bancorp Inc. 20.38 38.60 22.15 22.39 22.39 22.15 138.04 138.04 34.45 0.00 6.59
DIBK Dime Financial Corp. 34.88 183.78 17.79 11.90 11.98 17.79 221.99 227.50 18.01 1.38 14.68
DIME Dime Community Bancorp Inc. 28.81 358.43 25.73 30.01 32.01 26.68 189.31 217.62 22.73 1.25 19.27
DME Dime Bancorp Inc. 30.44 3,477.78 15.53 23.24 28.72 31.71 267.70 327.29 15.79 0.66 12.21
DNFC D & N Financial Corp. 26.75 244.54 16.31 16.82 19.96 21.57 242.52 244.52 13.08 0.75 8.87
DSL Downey Financial Corp. 34.50 969.23 13.91 19.27 21.70 17.97 217.25 219.75 16.51 0.93 17.03
EBI Equality Bancorp Inc. 13.38 33.25 NA NA NA NA 129.73 129.73 14.50 1.79 NA
EBSI Eagle Bancshares 23.63 135.10 19.69 26.25 21.67 19.69 184.00 184.00 14.46 2.71 66.67
EFBC Empire Federal Bancorp Inc. 16.63 43.09 24.45 24.81 24.81 24.45 106.03 106.03 38.97 1.93 44.78
EFBI Enterprise Federal Bancorp 29.00 64.12 22.66 25.66 30.21 32.95 176.08 180.57 17.54 3.45 88.50
EFC EFC Bancorp Inc. 13.56 101.61 NA NA NA NA NA NA NA 0.00 NA
EGLB Eagle BancGroup Inc. 19.75 23.25 27.43 37.98 75.96 123.44 112.47 112.47 12.90 0.00 0.00
EMLD Emerald Financial Corp. 13.00 133.41 18.06 20.63 22.41 20.31 262.10 265.31 21.66 1.08 19.84
EQSB Equitable Federal Savings Bank 30.50 37.14 16.58 17.43 17.94 18.15 213.88 213.88 11.09 0.00 0.00
ESBF ESB Financial Corp. 18.38 105.15 17.01 18.01 18.01 17.01 155.33 174.01 11.18 1.78 31.35
ESBK Elmira Savings Bank (The) 29.25 21.25 17.01 20.74 25.88 18.28 146.25 146.25 9.25 2.19 43.77
ESX Essex Bancorp Inc. 3.63 3.84 NM NM NM NM NM NM 1.99 0.00 0.00
ETFS East Texas Financial Services 14.25 21.94 32.39 29.69 33.14 39.58 104.09 104.09 18.14 1.40 27.75
FAB FIRSTFED AMERICA BANCORP INC. 20.25 167.50 28.13 24.11 28.52 36.16 126.64 126.64 13.75 0.00 0.00
FBBC First Bell Bancorp Inc. 19.75 128.86 14.96 15.55 16.06 15.43 172.79 172.79 19.39 2.03 31.50
FBCI Fidelity Bancorp Inc. 23.31 66.22 17.14 68.57 22.20 17.14 125.88 126.08 13.58 1.72 100.00
FBCV 1ST Bancorp 28.00 30.52 13.73 15.47 22.76 21.21 130.29 132.51 11.76 0.95 14.39
FBER 1st Bergen Bancorp 19.13 52.20 22.77 23.91 23.91 22.77 141.25 141.25 16.52 1.05 22.50
FBHC Fort Bend Holding Corp. 23.75 39.78 25.82 24.48 34.42 42.41 193.40 206.34 13.09 1.68 22.68
FBNW FirstBank Corp. 20.25 40.17 16.88 NA NA 26.64 123.48 123.48 21.89 1.58 NA
FBSI First Bancshares Inc. 13.00 28.77 18.06 15.29 16.05 18.06 120.26 125.60 16.15 0.92 12.35
FCB Falmouth Bancorp Inc. 20.00 29.10 27.78 27.40 35.09 41.67 123.53 123.53 27.67 1.20 28.77
FCBF FCB Financial Corp. 32.00 123.75 17.78 23.02 22.38 19.05 168.69 168.69 23.77 2.75 54.68
FCBH Virginia Beach Fed. Finananci 17.94 89.37 22.42 21.35 27.60 32.03 200.20 200.20 14.29 1.34 25.00
FCBK First Coastal Bankshares NA NA NA NA NA NA NA NA NA NA NA
FCME First Coastal Corp. 13.50 18.35 16.07 14.52 16.46 16.07 121.62 121.62 12.23 0.00 0.00
FDEF First Defiance Financial 15.06 122.36 19.82 23.91 24.69 20.92 120.12 120.12 21.19 2.39 53.97
FED FirstFed Financial Corp. 51.81 548.82 17.27 21.50 22.14 18.24 236.05 237.78 13.49 0.00 0.00
FESX First Essex Bancorp Inc. 22.75 171.41 16.73 17.37 19.12 17.77 188.17 213.41 13.25 2.46 39.69
FFBA First Colorado Bancorp Inc. 28.63 482.08 24.68 23.08 24.05 24.68 226.28 230.85 30.89 1.82 39.52
</TABLE>
Page 3 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFBH First Federal Bancshares of AR 27.38 134.03 22.81 23.20 24.66 23.60 159.16 159.16 23.50 1.02 20.34
FFBI First Financial Bancorp Inc. 25.25 10.49 52.60 84.17 41.39 NM 137.45 137.45 12.69 0.00 0.00
FFBS FFBS BanCorp Inc. 22.25 34.98 18.54 18.54 18.54 18.54 147.64 147.64 25.92 2.25 208.33
FFBZ First Federal Bancorp Inc. 25.25 39.77 31.56 24.05 25.51 33.22 246.58 246.82 18.79 1.11 24.76
FFCH First Financial Holdings Inc. 23.00 312.98 19.83 20.18 20.91 21.30 264.37 264.37 16.82 1.83 34.21
FFDB FirstFed Bancorp Inc. 25.00 28.87 18.38 18.12 18.12 18.38 166.67 181.55 16.15 2.00 41.67
FFDF FFD Financial Corp. 22.94 33.15 47.79 19.61 44.11 47.79 148.66 148.66 33.12 1.31 25.64
FFED Fidelity Federal Bancorp 7.38 23.06 NM NM NM NM 172.31 172.31 11.68 5.42 NM
FFES First Federal of East Hartford 37.13 101.06 19.34 18.11 16.35 15.73 146.97 146.97 10.16 1.83 30.24
FFFD North Central Bancshares Inc. 21.88 71.45 16.08 17.09 17.93 16.57 139.15 159.90 21.47 1.46 20.90
FFFL Fidelity Bankshares Inc. (MHC) 29.63 201.51 23.89 27.43 31.85 29.63 227.71 234.75 15.26 3.04 81.02
FFHH FSF Financial Corp. 19.00 56.50 16.96 16.96 17.27 18.27 117.43 117.43 13.63 2.63 44.64
FFHS First Franklin Corp. 17.13 30.62 14.27 16.63 19.24 18.61 142.59 143.19 13.18 1.56 24.60
FFIC Flushing Financial Corp. 27.00 211.35 21.77 22.13 22.69 22.50 154.11 160.24 19.60 1.19 21.31
FFKY First Federal Financial Corp. 27.25 112.53 17.03 18.05 18.54 17.93 209.29 221.01 27.65 2.06 36.42
FFLC FFLC Bancorp Inc. 19.88 74.48 19.11 20.28 21.37 19.11 143.40 143.40 18.22 1.81 31.22
FFOH Fidelity Financial of Ohio 17.25 96.51 19.60 19.38 20.06 20.54 148.20 167.31 17.86 1.86 144.94
FFPB First Palm Beach Bancorp Inc. 43.88 222.62 27.42 24.51 38.49 137.11 189.61 193.79 12.39 1.60 36.31
FFSL First Independence Corp. 13.88 13.28 17.34 18.26 18.26 17.34 114.76 114.76 10.65 0.00 34.54
FFSX First Fed SB of Siouxland(MHC) 36.50 103.58 33.80 31.74 31.47 29.44 251.55 317.67 18.13 1.32 41.74
FFWC FFW Corp. 17.00 24.64 12.14 13.18 13.49 12.50 129.38 140.96 12.40 2.47 27.91
FFWD Wood Bancorp Inc. 18.00 47.91 21.43 20.93 24.32 26.47 220.05 220.05 29.04 1.89 34.70
FFYF FFY Financial Corp. 32.81 133.04 16.08 16.49 16.74 16.41 157.53 157.53 20.64 2.44 37.69
FGHC First Georgia Holding Inc. 13.75 43.99 24.55 25.00 25.00 24.55 309.68 332.13 25.06 0.00 18.18
FIBC Financial Bancorp Inc. 27.50 46.93 15.63 16.57 16.98 17.19 167.38 168.09 15.12 1.82 25.60
FISB First Indiana Corp. 24.88 317.88 18.84 18.03 23.92 28.27 202.73 205.07 18.77 1.93 30.43
FKFS First Keystone Financial 18.75 45.25 15.63 15.63 17.86 18.75 176.06 176.06 11.75 1.07 10.42
FKKY Frankfort First Bancorp Inc. 16.25 26.31 16.93 90.28 25.39 16.93 116.40 116.40 19.74 4.92 NM
FLAG FLAG Financial Corp. 17.88 92.47 22.34 26.68 34.38 21.28 239.93 239.93 20.67 1.27 33.85
FLFC First Liberty Financial Corp. 23.50 273.24 18.36 27.98 27.01 21.76 274.21 299.74 20.16 1.28 33.33
FLGS Flagstar Bancorp Inc. 24.88 340.04 11.52 13.67 13.67 11.52 254.61 262.95 13.26 1.13 6.59
FLKY First Lancaster Bancshares 15.13 14.32 27.01 28.54 28.54 27.01 101.37 101.37 27.01 3.31 94.34
FMBD First Mutual Bancorp Inc. 16.88 59.58 35.16 42.19 51.14 46.88 99.56 128.62 15.27 1.90 80.00
FMCO FMS Financial Corp. 47.00 112.55 23.04 21.36 21.36 23.04 282.96 285.71 16.83 0.77 11.82
FMSB First Mutual Savings Bank 16.88 70.30 14.55 15.34 16.88 22.20 217.74 217.74 14.98 1.19 46.96
FNGB First Northern Capital Corp. 13.63 121.49 18.92 19.75 20.96 20.04 161.63 161.63 17.94 2.64 47.83
FOBC Fed One Bancorp 38.63 92.48 34.49 29.48 29.71 34.49 216.63 225.61 25.15 1.61 46.56
</TABLE>
Page 4 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FPRY First Financial Bancorp NA NA NA NA NA NA NA NA NA NA 39.66
FSBI Fidelity Bancorp Inc. 24.00 47.23 18.75 17.39 17.65 18.75 171.18 171.18 11.71 1.50 20.87
FSFF First SecurityFed Financial 16.75 107.33 17.45 NA NA 17.45 114.80 115.12 33.20 0.00 NA
FSLA First Source Bancorp Inc. 10.00 317.40 NA NA NA NA NA NA NA 1.20 NA
FSNJ Bayonne Bancshares Inc. 16.31 148.26 31.37 NA NA 31.37 153.46 153.46 24.18 1.04 NA
FSPG First Home Bancorp Inc. 31.13 85.72 18.10 18.64 18.98 18.53 220.74 223.60 15.45 1.29 23.95
FSPT FirstSpartan Financial Corp. 44.00 194.92 23.91 NA NA 25.00 147.30 147.30 38.73 1.36 NA
FSSB First FS&LA of San Bernardino 9.63 3.16 NM NM NM NM 70.36 73.03 3.05 0.00 0.00
FSTC First Citizens Corp. 30.50 84.56 16.58 14.66 16.22 18.60 237.17 296.69 23.94 1.05 14.42
FTF Texarkana First Financial Corp 29.75 52.32 15.82 16.35 16.62 15.82 186.05 186.05 28.32 1.88 30.77
FTFC First Federal Capital Corp. 34.75 321.70 18.10 18.68 24.47 24.13 283.91 299.31 20.36 1.61 25.81
FTNB Fulton Bancorp Inc. 19.75 33.57 35.27 25.32 32.92 44.89 131.14 131.14 30.64 1.22 26.92
FTSB Fort Thomas Financial Corp. 15.00 22.11 22.06 17.86 17.86 22.06 137.99 137.99 21.77 1.67 35.71
FWWB First SB of Washington Bancorp 24.59 246.21 18.08 18.63 19.68 19.83 152.57 164.73 21.97 1.46 21.21
GAF GA Financial Inc. 20.25 153.80 18.75 17.31 18.24 19.47 134.19 135.45 18.80 2.77 39.32
GBNK Gaston Federal Bancorp (MHC) 16.00 71.94 NA NA NA NA NA NA NA 0.00 NA
GDW Golden West Financial 108.50 6,215.10 15.41 16.82 16.74 14.58 220.44 220.44 15.64 0.46 7.29
GFCO Glenway Financial Corp. 24.00 54.78 20.69 22.22 22.43 21.43 190.48 192.15 18.23 1.83 35.65
GFED Guaranty Federal Bcshs Inc. 12.88 80.16 22.99 NA NA 22.99 114.85 114.85 32.54 4.66 NA
GLMR Gilmer Financial Svcs, Inc. 14.13 2.70 NM 117.71 20.77 NM 71.05 71.05 6.41 0.00 0.00
GOSB GSB Financial Corp. 17.25 38.78 39.20 NA NA 39.20 115.93 115.93 32.63 0.00 NA
GPT GreenPoint Financial Corp. 41.38 3,494.90 22.99 22.36 21.66 20.28 237.38 425.67 26.42 1.55 28.92
GSB Golden State Bancorp Inc. 35.31 2,175.04 19.62 21.80 18.88 18.02 207.97 229.16 11.38 0.00 0.00
GSBC Great Southern Bancorp Inc. 26.00 207.99 15.85 15.38 17.11 18.57 312.88 315.15 25.64 1.69 24.85
GSFC Green Street Financial Corp. 16.38 70.38 24.08 24.08 24.08 24.08 110.57 110.57 39.56 2.69 86.76
GSLA GS Financial Corp. 17.38 58.20 27.15 NA NA 39.49 108.05 108.05 44.98 1.61 NA
GTPS Great American Bancorp 21.75 34.55 36.25 40.28 40.28 36.25 118.34 118.34 23.63 2.02 74.07
GUPB GFSB Bancorp Inc. 15.50 18.62 18.45 19.62 19.62 18.45 127.68 127.68 15.75 1.72 33.77
HALL Hallmark Capital Corp. 15.00 44.00 17.05 15.96 16.67 18.75 128.42 128.42 10.45 0.00 0.00
HARB Harbor Florida Bancshares Inc. 11.88 364.55 NA NA NA NA 143.24 144.99 28.38 2.19 NA
HARL Harleysville Savings Bank 32.38 54.13 15.56 15.95 15.95 15.56 220.84 220.84 14.72 1.36 20.69
HARS Harris Financial Inc. (MHC) 24.06 817.13 35.39 43.75 66.84 60.16 444.79 495.12 36.14 0.91 37.56
HAVN Haven Bancorp Inc. 26.50 234.14 27.60 23.87 24.31 31.55 205.27 205.75 11.60 1.13 27.03
HBBI Home Building Bancorp 24.00 7.48 25.00 21.05 22.02 27.27 116.45 116.45 17.63 1.25 26.32
HBEI Home Bancorp of Elgin Inc. 16.38 112.26 51.17 43.09 43.09 51.17 117.38 117.38 30.43 2.44 105.26
HBFW Home Bancorp 31.88 75.15 21.54 25.30 25.91 22.77 176.69 176.69 21.27 0.63 15.87
</TABLE>
Page 5 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HBNK Highland Bancorp Inc. 42.75 99.29 13.53 15.16 17.38 15.05 227.88 227.88 17.87 2.34 0.00
HBS Haywood Bancshares Inc. 22.75 28.45 11.15 12.85 12.85 11.15 126.04 130.15 18.71 2.64 32.77
HBSC Heritage Bancorp Inc. 20.25 93.73 NA NA NA NA NA NA NA 0.00 NA
HCBB HCB Bancshares Inc. 15.00 39.68 53.57 NA NA 53.57 103.81 107.53 19.36 1.33 NA
HCBC High Country Bancorp Inc. 15.00 19.84 23.44 NA NA 23.44 109.89 109.89 21.50 2.00 NA
HCFC Home City Financial Corp. 15.50 14.02 16.85 NA NA 16.85 98.79 98.79 18.36 2.32 NA
HEMT HF Bancorp Inc. 17.13 108.42 NM NM 77.84 NM 129.05 152.09 10.14 0.00 0.00
HFBC HopFed Bancorp Inc. 20.69 83.45 NA NA NA NA 145.08 145.08 37.69 0.00 NA
HFFB Harrodsburg First Fin Bancorp 16.25 31.64 20.31 20.57 20.57 20.31 101.69 101.69 29.07 2.46 75.95
HFFC HF Financial Corp. 23.00 101.25 18.55 17.04 18.25 20.54 182.68 182.68 17.75 1.22 20.00
HFGI Harrington Financial Group 11.31 37.25 NM NM 161.61 NM 153.09 153.09 6.77 1.06 NM
HFNC HFNC Financial Corp. 12.16 208.99 15.20 16.21 23.38 18.99 123.66 123.66 21.33 2.63 38.67
HFSA Hardin Bancorp Inc. 19.38 15.96 16.15 17.94 20.83 20.18 118.36 118.36 13.17 2.68 45.37
HFWA Heritage Financial Corp. 14.88 145.23 NA NA NA NA 156.09 156.09 44.95 0.94 NA
HHFC Harvest Home Financial Corp. 15.00 13.37 26.79 24.19 24.19 26.79 129.65 129.65 14.71 2.93 67.74
HIFS Hingham Instit. for Savings 35.00 45.62 16.51 17.07 17.07 16.51 207.84 207.84 19.69 1.49 30.24
HLFC Home Loan Financial Corp. 15.25 34.29 NA NA NA NA 110.35 110.35 42.98 0.00 NA
HMLK Hemlock Federal Financial Corp 18.31 34.60 21.80 NA NA 21.80 118.45 118.45 19.18 1.53 NA
HMNF HMN Financial Inc. 18.00 106.36 16.07 18.56 26.09 32.14 131.68 141.62 15.28 0.89 0.00
HOMF Home Federal Bancorp 31.00 158.94 15.50 16.85 20.67 23.48 245.06 251.83 22.54 1.29 19.24
HPBC Home Port Bancorp Inc. 26.13 48.12 25.12 16.03 14.35 13.90 218.07 218.07 21.32 3.06 49.08
HRBF Harbor Federal Bancorp Inc. 22.50 38.10 20.83 22.06 22.96 20.83 129.91 129.91 16.48 2.31 46.08
HRZB Horizon Financial Corp. 17.50 130.86 15.63 16.06 16.20 15.09 155.97 155.97 23.92 2.51 76.15
HTHR Hawthorne Financial Corp. 18.00 56.95 14.06 11.69 9.94 14.06 127.93 127.93 5.44 0.00 0.00
HWEN Home Financial Bancorp 9.13 8.48 14.26 20.28 24.66 14.26 113.64 113.64 20.45 1.10 22.22
HZFS Horizon Financial Svcs Corp. 16.25 14.30 15.05 17.47 22.57 18.47 169.27 169.27 15.42 1.11 18.28
IBSF IBS Financial Corp. 18.06 197.99 30.11 32.26 32.26 30.11 151.66 151.66 26.32 2.21 67.86
ICBC Independence Comm. Bank Corp 16.94 1,288.03 NA NA NA NA NA NA NA 0.00 NA
IFSB Independence Federal Svgs Bank 17.00 21.78 6.85 10.56 65.38 38.64 109.96 121.52 7.93 1.47 29.19
INBI Industrial Bancorp Inc. 18.81 94.64 16.80 17.58 17.58 16.80 154.97 154.97 25.54 3.19 48.60
IPSW Ipswich Savings Bank 17.50 41.82 14.11 17.33 22.44 20.83 333.33 333.33 17.60 0.91 13.86
ITLA ITLA Capital Corp. 21.63 166.51 12.29 13.19 13.19 12.29 161.86 162.35 16.47 0.00 0.00
IWBK InterWest Bancorp Inc. 46.50 391.49 21.53 19.06 22.46 24.22 276.95 281.31 18.72 1.63 27.87
JOAC Joachim Bancorp Inc. 16.81 12.15 46.70 46.70 46.70 46.70 122.72 122.72 35.49 2.97 138.89
JSB JSB Financial Inc. 58.56 578.78 19.52 15.62 18.02 21.22 155.38 155.38 37.01 2.73 38.67
JSBA Jefferson Savings Bancorp 30.00 300.66 34.09 30.00 33.71 41.67 235.48 293.54 24.21 0.93 24.00
JXSB Jacksonville Savings Bk (MHC) 21.50 41.02 41.35 42.16 65.15 107.50 232.94 232.94 24.18 1.40 55.57
</TABLE>
Page 6 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JXVL Jacksonville Bancorp Inc. 20.75 50.73 18.53 15.26 15.26 18.53 145.21 145.21 21.39 2.41 36.76
KFBI Klamath First Bancorp 19.44 193.79 21.13 21.84 21.84 21.13 120.28 131.07 19.49 1.75 35.96
KNK Kankakee Bancorp Inc. 35.50 48.99 16.44 17.49 17.93 17.07 126.97 152.62 12.25 1.35 23.65
KSAV KS Bancorp Inc. NA NA NA NA NA NA NA NA NA NA 63.46
KSBK KSB Bancorp Inc. 18.75 23.75 13.79 13.59 13.99 13.79 196.13 225.63 15.26 0.53 6.52
KYF Kentucky First Bancorp Inc. 15.75 19.55 19.69 20.19 20.45 19.69 140.12 140.12 23.87 3.18 64.10
LARK Landmark Bancshares Inc. 27.13 45.18 18.84 19.24 21.88 24.22 138.39 138.39 19.53 2.21 35.46
LARL Laurel Capital Group Inc. 21.25 46.50 14.76 16.10 16.47 16.10 201.61 201.61 21.44 2.45 28.54
LFBI Little Falls Bancorp Inc. 19.50 48.31 25.66 25.32 26.35 25.66 133.29 144.34 13.59 1.03 19.48
LFCO Life Financial Corp. 21.00 137.48 9.72 9.21 8.90 9.72 234.90 234.90 35.51 0.00 0.00
LFED Leeds Federal Bankshares (MHC) 19.75 102.35 29.04 29.92 29.92 29.04 207.46 207.46 34.23 2.84 80.82
LISB Long Island Bancorp Inc. 62.13 1,486.93 25.89 27.61 33.95 31.70 263.80 266.06 23.62 0.97 26.67
LO Local Financial Corp. 13.00 266.98 NA NM NA NA NA NA NA 0.00 NM
LOGN Logansport Financial Corp. 17.00 21.44 18.48 17.17 16.83 18.48 127.72 127.72 24.09 2.35 40.40
LONF London Financial Corp. 15.25 7.78 15.25 17.73 19.06 15.89 149.07 149.07 20.52 1.57 609.30
LSBI LSB Financial Corp. 30.00 28.87 15.63 16.85 18.75 17.86 148.74 148.74 13.36 1.27 18.78
LSBX Lawrence Savings Bank 15.38 66.37 8.94 7.93 8.01 9.15 167.85 167.85 18.69 0.00 0.00
LVSB Lakeview Financial Corp. 26.00 111.43 10.32 16.77 27.37 27.08 221.28 269.71 21.35 0.96 8.08
LXMO Lexington B&L Financial Corp. 15.88 17.79 33.07 23.01 23.01 33.07 104.51 111.40 18.82 1.89 43.48
MAFB MAF Bancorp Inc. 38.00 571.14 16.10 15.83 16.24 16.96 210.18 236.91 16.27 1.11 11.67
MARN Marion Capital Holdings 28.25 49.38 24.35 21.24 21.24 24.35 126.68 129.41 26.03 3.12 66.17
MASB MASSBANK Corp. 50.00 179.34 16.23 17.48 19.31 19.84 167.50 169.84 19.30 2.00 32.60
MBBC Monterey Bay Bancorp Inc. 21.38 67.68 38.17 38.86 41.91 35.63 134.94 144.33 16.79 0.66 23.64
MBLF MBLA Financial Corp. 24.13 30.08 15.46 16.64 16.75 15.46 107.80 107.80 14.55 1.66 27.59
MBSP Mitchell Bancorp Inc. 16.75 15.59 26.17 28.39 28.39 26.17 107.37 107.37 42.22 2.39 67.80
MCBN Mid-Coast Bancorp Inc. 12.00 8.54 20.00 17.91 19.35 23.08 160.00 160.00 13.56 1.45 25.88
MDBK Medford Bancorp Inc. 41.63 188.98 15.30 16.78 17.79 17.64 182.65 193.25 16.87 1.92 37.10
MECH MECH Financial Inc. 28.88 152.86 17.61 11.46 11.46 16.79 168.47 168.47 16.16 2.08 0.00
METF Metropolitan Financial Corp. 15.00 105.77 13.39 16.13 18.29 18.75 276.75 299.40 10.69 0.00 0.00
MFBC MFB Corp. 27.00 44.60 16.88 20.93 21.26 17.31 130.37 130.37 15.35 1.26 25.19
MFFC Milton Federal Financial Corp. 16.13 36.07 20.16 24.43 27.80 28.79 129.10 129.10 15.91 3.72 90.91
MFLR Mayflower Co-operative Bank 23.75 21.36 13.19 15.13 16.84 16.05 165.97 168.56 16.19 3.37 40.76
MFSL Maryland Federal Bancorp 39.25 255.16 44.60 29.73 29.96 36.34 244.24 246.55 21.40 1.15 32.58
MIFC Mid-Iowa Financial Corp. 11.88 20.47 16.49 13.65 15.22 17.46 157.28 157.49 13.92 0.67 9.20
MIVI Mississippi View Holding Co. 20.00 14.80 20.83 21.05 21.28 20.83 118.69 118.69 21.57 1.60 16.84
MONT Montgomery Financial Corp. 12.75 21.08 18.75 NA NA 18.75 105.81 105.81 19.31 1.73 NA
MRKF Market Financial Corp. 13.75 18.37 28.65 26.44 26.44 28.65 90.16 90.16 31.80 2.04 40.38
</TABLE>
Page 7 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MSBF MSB Financial Inc. 17.00 20.90 15.74 17.00 19.10 18.48 157.70 157.70 26.34 1.77 28.50
MSBK Mutual Savings Bank FSB 11.75 50.41 22.60 NM NM 73.44 151.42 151.42 7.68 0.00 0.00
MWBI Midwest Bancshares Inc. 15.75 16.35 14.06 13.13 15.00 15.14 148.17 148.17 10.21 1.78 18.33
MWBX MetroWest Bank 7.81 111.10 15.03 14.47 14.47 15.03 238.20 238.20 17.18 1.54 31.48
MYST Mystic Financial Inc. 15.25 41.34 NA NA NA NA 115.53 115.53 22.02 1.31 NA
NASB NASB Financial Inc. 65.50 146.70 11.70 12.17 14.92 13.21 235.36 242.41 19.98 1.53 14.87
NBCP Niagara Bancorp Inc. (MHC) 14.63 435.19 NA NA NA NA NA NA NA 0.00 NA
NBN Northeast Bancorp 16.00 39.38 14.81 20.51 21.33 15.38 164.61 181.20 11.52 1.33 27.29
NBSI North Bancshares Inc. 16.25 20.80 33.85 40.63 42.76 40.63 153.30 153.30 17.56 2.46 85.00
NEIB Northeast Indiana Bancorp 21.50 35.98 15.81 15.81 15.81 15.81 135.82 135.82 18.13 1.58 24.26
NEP Northeast PA Financial Corp. 14.00 89.99 NA NA NA NA NA NA NA 0.00 NA
NHTB New Hampshire Thrift Bncshrs 19.50 40.77 14.77 14.44 15.60 14.77 157.13 180.89 12.72 3.08 38.89
NMSB NewMil Bancorp Inc. 13.63 52.31 18.92 20.04 20.34 21.29 158.61 158.61 14.13 2.35 41.18
NSLB NS&L Bancorp Inc. 17.59 12.07 27.49 27.93 27.93 27.49 105.04 105.80 19.74 2.84 79.37
NSSY NSS Bancorp Inc. 43.00 102.06 19.20 18.38 22.63 22.40 188.10 193.26 15.26 1.21 17.09
NTBK Net.B@nk Inc. 24.75 152.11 NM NM NM NM 445.95 445.95 93.05 0.00 0.00
NTMG Nutmeg Federal S&LA 10.88 10.88 20.91 23.64 54.38 90.63 165.27 165.27 9.64 1.84 38.04
NWEQ Northwest Equity Corp. 20.38 16.80 13.77 15.09 15.67 14.55 137.48 137.48 17.17 3.14 37.04
NWSB Northwest Bancorp Inc. (MHC) 15.88 743.55 33.07 36.08 36.92 36.08 348.90 390.05 30.86 1.01 36.36
OCFC Ocean Financial Corp. 19.38 300.97 19.38 20.39 20.18 19.38 139.39 139.39 19.82 2.48 42.11
OCN Ocwen Financial Corp. 24.81 1,506.37 17.23 17.35 65.30 NM 336.68 355.49 44.03 0.00 0.00
OFCP Ottawa Financial Corp. 28.50 151.65 22.27 20.96 22.62 26.39 195.88 238.89 16.55 1.40 28.07
OHSL OHSL Financial Corp. 16.75 41.72 18.21 19.94 21.20 19.94 153.39 153.39 16.61 2.99 52.38
OSFS Ohio State Financial Services 16.00 10.15 NA NA NA NA 97.15 97.15 26.32 0.00 NA
OTFC Oregon Trail Financial Corp. 16.50 71.49 NA NA NA NA 107.56 107.56 27.81 1.21 NA
PBCI Pamrapo Bancorp Inc. 28.38 80.67 17.30 16.40 16.99 17.30 164.97 165.94 21.15 3.95 59.54
PBCT People's Bank (MHC) 38.75 2,483.21 23.63 24.84 45.59 38.75 294.01 343.22 27.14 2.17 45.94
PBHC Pathfinder Bancorp Inc. (MHC) 21.63 61.23 38.62 34.88 45.05 60.07 258.98 305.87 31.21 0.93 30.66
PBKB People's Bancshares Inc. 25.50 84.37 14.83 16.56 36.96 33.55 266.74 276.27 9.79 2.04 29.22
PBOC PBOC Holdings Inc. 14.06 288.94 NA 12.34 78.13 NA 142.48 142.48 2.00 0.00 0.00
PCBC Perry County Financial Corp. 23.38 19.35 22.48 21.06 21.06 22.48 118.72 118.72 22.48 2.14 45.05
PDB Piedmont Bancorp Inc. 9.75 26.82 15.23 16.81 17.11 16.25 125.48 125.48 20.19 4.10 68.97
PEDE Great Pee Dee Bancorp 15.50 34.13 22.79 NA NA 22.79 109.23 109.23 49.28 1.94 NA
PEEK Peekskill Financial Corp. 17.63 53.17 27.54 26.70 25.92 24.48 118.13 118.13 27.15 2.04 54.55
PERM Permanent Bancorp Inc. 16.00 67.44 23.53 25.81 25.81 25.00 154.74 156.56 16.03 1.38 28.23
PFDC Peoples Bancorp 22.75 76.84 17.23 17.77 17.77 17.23 169.40 169.40 25.56 1.93 33.34
PFED Park Bancorp Inc. 18.25 42.57 17.55 25.35 25.70 17.55 108.31 108.31 21.57 0.00 0.00
</TABLE>
Page 8 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PFFB PFF Bancorp Inc. 20.00 324.91 19.23 21.05 22.47 20.83 134.23 135.59 12.14 0.00 0.00
PFFC Peoples Financial Corp. 13.25 18.85 11.42 20.70 32.32 55.21 119.26 119.26 22.83 4.53 859.38
PFNC Progress Financial Corp. 19.25 95.33 21.88 22.65 25.33 25.33 302.20 340.71 16.68 0.62 12.66
PFSB PennFed Financial Services Inc 17.00 163.48 13.71 14.66 15.18 15.18 144.31 166.50 11.16 0.82 12.07
PFSL Pocahontas Bancorp Inc. 9.81 65.45 NA NA NA NA NA NA NA 2.45 NA
PHBK Peoples Heritage Finl Group 23.75 2,102.16 16.49 17.34 17.46 16.49 269.27 353.95 18.09 1.85 29.20
PHFC Pittsburgh Home Financial Corp 17.63 34.71 15.74 14.81 17.28 16.95 138.13 139.77 10.26 1.36 230.25
PHSB Peoples Home Savings Bk (MHC) 20.13 55.55 31.45 NA NA 38.70 194.82 194.82 24.86 1.19 NA
PLSK Pulaski Savings Bank (MHC) 17.88 37.68 31.92 NA NA 31.92 171.22 171.22 19.75 1.68 NA
PRBC Prestige Bancorp Inc. 19.50 20.52 30.47 25.66 26.35 30.47 130.00 130.00 12.78 0.89 16.03
PROV Provident Financial Holdings 22.38 104.47 20.72 20.53 41.44 43.03 123.21 123.21 13.66 0.00 0.00
PSBK Progressive Bank Inc. 41.38 159.53 20.28 18.98 18.64 18.47 200.07 219.26 17.80 1.93 32.57
PSFC Peoples-Sidney Financial Corp. 24.19 43.18 30.24 NA NA 30.24 151.36 151.36 40.93 1.16 NA
PSFI PS Financial Inc. 13.50 27.07 16.07 28.13 18.49 16.88 120.00 120.00 33.40 3.56 916.67
PTRS Potters Financial Corp. 18.75 18.13 20.38 18.56 19.13 21.31 164.47 164.47 14.32 1.28 18.81
PULB Pulaski Bank, Svgs Bank (MHC) 45.25 95.29 47.14 47.63 56.56 59.54 386.42 386.42 51.89 2.43 113.16
PULS Pulse Bancorp 27.63 86.20 16.44 15.70 15.88 16.44 190.91 190.91 15.92 2.90 42.61
PVFC PVF Capital Corp. 26.00 69.16 13.54 13.98 14.77 15.12 229.28 229.28 16.51 0.00 0.00
PVSA Parkvale Financial Corp. 31.50 162.23 14.86 15.29 15.29 14.86 196.63 197.62 15.37 1.91 24.95
PWBK Pennwood Bancorp Inc. 14.00 10.28 70.00 26.92 25.93 70.00 111.20 111.20 22.15 1.93 49.04
QCBC Quaker City Bancorp Inc. 23.00 107.12 15.54 16.91 17.42 15.97 142.50 142.50 12.48 0.00 0.00
QCFB QCF Bancorp Inc. 30.38 41.46 12.66 13.87 14.06 13.32 152.03 152.03 26.91 0.00 0.00
QCSB Queens County Bancorp Inc. 44.50 664.03 24.18 27.47 27.99 24.72 339.44 339.44 40.93 2.25 43.21
RARB Raritan Bancorp Inc. 29.00 69.24 18.13 18.59 18.83 18.13 219.36 222.22 16.53 2.07 32.48
RCBK Richmond County Financial Corp 19.13 505.35 NA NA NA NA 156.63 157.28 34.52 1.05 NA
REDF RedFed Bancorp Inc. 20.31 150.07 12.09 13.45 13.11 11.81 169.28 169.84 14.52 0.00 0.00
RELI Reliance Bancshares Inc. 8.56 20.30 30.58 40.78 42.82 30.58 91.98 91.98 45.96 0.00 0.00
RELY Reliance Bancorp Inc. 39.88 383.91 20.77 20.04 21.21 20.77 198.09 287.08 17.61 1.81 33.17
RIVR River Valley Bancorp 18.75 22.32 16.74 16.03 17.86 20.38 122.23 123.84 16.67 1.07 15.38
ROSE TR Financial Corp. 42.13 738.47 18.81 20.25 22.89 21.49 283.29 283.29 18.44 1.71 29.33
RSLN Roslyn Bancorp Inc. 22.31 925.10 16.41 19.92 20.85 19.24 153.78 154.52 25.78 1.52 23.21
RVSB Riverview Bancorp Inc. 17.00 104.62 18.48 NA NA 20.24 171.20 177.08 38.30 0.82 NA
SBAN SouthBanc Shares Inc. 19.63 84.44 NA NA NA NA NA NA NA 7.13 NA
SBFL SB of the Finger Lakes (MHC) 19.63 70.06 70.09 75.48 89.20 81.77 321.72 321.72 27.93 1.22 76.92
SBOS Boston Bancorp (The) NA NA NA NA NA NA NA NA NA NA 10.89
SCBS Southern Community Bancshares 17.25 19.62 26.95 21.04 20.78 26.95 170.79 170.79 27.08 0.00 332.32
SCCB S. Carolina Community Bancshars 21.75 12.61 24.72 29.39 29.39 24.72 133.60 133.60 27.23 2.94 83.78
</TABLE>
Page 9 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SFED SFS Bancorp Inc. 22.00 26.59 23.91 22.68 23.40 23.91 122.63 122.63 15.16 1.46 29.90
SFFC StateFed Financial Corp. 14.38 22.47 21.14 20.25 20.25 21.14 141.49 141.49 25.08 1.39 28.17
SFIN Statewide Financial Corp. 22.00 99.32 17.74 17.05 17.19 17.74 150.79 151.00 14.83 2.00 33.33
SFSB SuburbFed Financial Corp. 47.25 60.02 28.13 23.51 30.68 39.38 199.87 200.38 13.44 0.68 15.92
SFSL Security First Corp. 25.75 194.54 22.20 23.20 23.20 22.20 300.82 305.09 28.38 1.40 28.83
SGVB SGV Bancorp Inc. 17.75 41.63 22.19 27.31 32.87 22.19 131.58 133.36 10.38 0.00 0.00
SHEN First Shenango Bancorp Inc. 41.00 84.83 23.84 19.43 19.07 21.35 175.66 175.66 21.04 1.46 28.44
SHSB SHS Bancorp Inc. 17.75 14.55 16.44 NA NA 20.17 118.89 118.89 16.46 0.00 NA
SIB Staten Island Bancorp Inc. 21.69 978.79 21.69 NA NA 22.59 139.83 143.53 36.64 1.29 NA
SISB SIS Bancorp Inc. 41.38 288.38 17.83 23.38 18.47 18.47 226.09 226.09 16.08 1.55 31.64
SKAN Skaneateles Bancorp Inc. 17.50 25.20 19.02 16.20 16.51 19.89 140.22 143.91 9.78 1.60 25.01
SKBO First Carnegie Deposit (MHC) 19.50 44.85 81.25 NA NA 121.88 181.56 181.56 31.22 1.54 NA
SMBC Southern Missouri Bancorp Inc. 21.25 34.81 53.13 30.36 31.72 53.13 129.18 129.18 21.67 2.35 71.43
SOBI Sobieski Bancorp Inc. 19.50 15.25 28.68 30.00 30.47 30.47 109.30 109.30 16.58 1.64 47.69
SOPN First Savings Bancorp Inc. 24.25 89.96 17.83 18.65 18.65 17.83 130.31 130.31 30.01 4.12 68.46
SOSA Somerset Savings Bank 5.16 86.24 8.06 11.46 11.99 8.59 223.20 223.20 16.18 0.00 0.00
SPBC St. Paul Bancorp. Inc. 25.31 868.50 18.08 17.83 18.08 19.18 202.83 203.64 18.95 1.58 26.76
SRN Southern Banc Co. 16.13 19.84 31.01 37.50 37.50 31.01 107.86 108.66 18.77 0.00 81.40
SSB Scotland Bancorp Inc. 8.88 16.98 24.65 15.57 15.57 24.65 112.20 112.20 27.72 2.25 NM
SSFC South Street Financial Corp. 9.75 45.59 40.63 23.21 NA 48.75 118.47 118.47 21.01 4.10 NM
SSM Stone Street Bancorp Inc. 19.75 36.83 19.75 25.32 23.51 19.75 119.55 119.55 33.47 2.33 570.83
STFR St. Francis Capita1 Corp. 41.81 218.41 15.37 17.07 19.27 23.76 165.60 185.34 13.25 1.34 21.22
STSA Sterling Financial Corp. 25.63 194.65 18.30 19.56 22.28 22.09 183.96 197.42 10.31 0.00 0.00
SVRN Sovereign Bancorp Inc. 17.50 2,340.76 48.61 31.25 21.60 17.50 249.29 290.70 12.85 0.46 12.52
SWBI Southwest Bancshares Inc. 31.63 87.93 18.39 20.27 20.81 20.27 193.07 193.07 22.43 2.53 50.00
SWCB Sandwich Bancorp Inc. 62.75 122.11 27.05 25.20 26.26 29.60 286.92 296.27 23.19 2.23 52.21
SZB SouthFirst Bancshares Inc. 19.63 19.15 27.26 25.16 22.30 40.89 117.16 120.10 11.80 3.06 67.31
THR Three Rivers Financial Corp. 19.44 16.03 20.25 18.00 19.44 23.14 120.88 121.26 16.34 2.26 37.04
THRD TF Financial Corp. 26.22 83.60 21.14 20.64 24.28 21.85 148.72 176.56 13.07 1.83 33.07
TPNZ Tappan Zee Financial Inc. 20.00 29.56 21.74 25.97 27.78 23.81 135.59 135.59 22.85 1.40 33.77
TRIC Tri-County Bancorp Inc. 14.75 17.22 20.49 19.93 19.16 20.49 122.61 122.61 19.29 2.98 47.30
TSBK Timberland Bancorp Inc. 16.69 101.67 NA NA NA NA 121.02 121.02 38.89 1.44 NA
TSBS Peoples Bancorp Inc. 10.00 362.37 NA NA NA NA NA NA NA 1.00 NA
TSH Teche Holding Co. 19.63 67.49 16.35 17.21 17.37 16.92 119.81 119.81 16.57 2.55 43.86
TWIN Twin City Bancorp 13.75 17.18 14.95 15.45 18.84 19.10 123.10 123.10 15.70 2.91 46.45
UBMT United Financial Corp. 27.88 47.34 NM NA NA NA 157.22 162.54 24.00 3.59 NA
UCBC Union Community Bancorp 14.88 45.25 19.57 NA NA 19.57 104.61 104.61 41.87 2.02 NA
</TABLE>
Page 10 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
UFRM United Federal Savings Bank 18.00 58.74 32.14 32.73 48.65 37.50 256.41 256.41 19.22 1.33 43.64
UPFC United PanAm Financial Corp. 10.63 174.78 NA 20.05 NM NA NM NM 37.43 0.00 0.00
USAB USABancshares Inc. 14.50 21.77 11.33 NM 131.82 12.08 179.23 180.35 21.24 0.00 0.00
UTBI United Tennessee Bankshares 14.88 21.64 NA NA NA NA 106.86 106.86 28.83 8.07 NA
WAMU Washington Mutual Inc. 46.13 17,854.59 16.96 31.81 20.41 16.96 320.98 342.68 17.30 1.73 50.57
WAYN Wayne Savings Bancshares (MHC) 28.00 69.55 46.67 37.33 40.58 50.00 284.55 284.55 26.77 2.01 75.15
WBST Webster Financial Corp. 32.31 885.74 14.69 16.83 16.57 16.83 221.47 251.27 11.72 1.36 20.83
WCBI Westco Bancorp Inc. 30.50 75.10 17.33 17.04 18.48 18.60 152.42 152.42 23.53 2.23 35.75
WCFB Webster City Federal SB (MHC) 18.88 39.86 29.49 29.49 29.49 29.49 176.73 176.73 42.44 4.24 125.00
WEFC Wells Financial Corp. 20.75 40.66 15.26 17.15 17.89 16.73 134.39 134.39 19.41 2.89 29.75
WEHO Westwood Homestead Fin. Corp. 12.50 35.54 26.04 39.06 NA 28.41 119.05 119.05 27.36 2.88 NM
WES Westcorp 12.25 322.44 NM 19.14 NM NM 96.84 97.07 8.45 1.63 62.50
WFI Winton Financial Corp. 16.50 66.24 17.19 18.54 23.57 22.92 263.16 267.86 19.21 1.52 26.97
WFSL Washington Federal Inc. 28.75 1,506.63 13.56 13.89 14.16 14.09 199.38 215.52 26.74 3.06 41.37
WHGB WHG Bancshares Corp. 16.00 22.22 44.44 32.00 31.37 44.44 111.34 111.34 18.76 2.00 52.00
WOFC Western Ohio Financial Corp. 25.50 59.98 33.55 212.50 134.21 45.54 111.94 119.66 16.41 3.92 833.33
WRNB Warren Bancorp Inc. 12.06 92.45 16.75 15.08 16.30 16.75 224.64 224.64 24.82 2.98 55.63
WSB Washington Savings Bank, FSB 7.25 31.94 20.14 16.48 22.66 25.89 138.62 138.62 12.02 1.38 22.73
WSBI Warwick Community Bancorp 16.69 110.25 NA NA NA NA 128.96 128.96 29.73 0.00 NA
WSFS WSFS Financial Corp. 22.00 275.54 15.71 16.54 16.92 16.67 300.96 302.61 17.87 0.55 0.00
WSTR WesterFed Financial Corp. 24.88 138.93 25.91 18.84 18.56 20.73 127.76 159.35 13.58 2.01 37.20
WVFC WVS Financial Corp. 18.50 66.91 18.50 17.62 17.45 18.50 204.42 204.42 22.46 3.24 247.62
WYNE Wayne Bancorp Inc. 31.00 62.41 35.23 31.63 31.63 35.23 180.76 180.76 22.94 0.65 20.41
YFCB Yonkers Financial Corp. 19.38 58.43 19.38 17.94 18.63 20.18 128.91 128.91 16.99 1.45 22.22
YFED York Financial Corp. 21.69 193.55 22.59 19.54 23.83 28.54 181.19 181.19 15.89 2.40 44.14
All Public Average 276.81 22.79 23.33 25.79 26.26 171.31 178.18 20.51 1.55 50.06
All Public Median 66.22 19.23 19.93 21.32 20.87 154.11 157.39 18.69 1.52 29.26
</TABLE>
Page 11 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
New Jersey
FBER 1st Bergen Bancorp 19.13 52.20 22.77 23.91 23.91 22.77 141.25 141.25 16.52 1.05 22.50
FSNJ Bayonne Bancshares Inc. 16.31 148.26 31.37 NA NA 31.37 153.46 153.46 24.18 1.04 NA
FSPG First Home Bancorp Inc. 31.13 85.72 18.10 18.64 18.98 18.53 220.74 223.60 15.45 1.29 23.95
FSLA First Source Bancorp Inc. 10.00 317.40 NA NA NA NA NA NA NA 1.20 NA
FMCO FMS Financial Corp. 47.00 112.55 23.04 21.36 21.36 23.04 282.96 285.71 16.83 0.77 11.82
IBSF IBS Financial Corp. 18.06 197.99 30.11 32.26 32.26 30.11 151.66 151.66 26.32 2.21 67.86
LVSB Lakeview Financial Corp. 26.00 111.43 10.32 16.77 27.37 27.08 221.28 269.71 21.35 0.96 8.08
LFBI Little Falls Bancorp Inc. 19.50 48.31 25.66 25.32 26.35 25.66 133.29 144.34 13.59 1.03 19.48
OCFC Ocean Financial Corp. 19.38 300.97 19.38 20.39 20.18 19.38 139.39 139.39 19.82 2.48 42.11
PBCI Pamrapo Bancorp Inc. 28.38 80.67 17.30 16.40 16.99 17.30 164.97 165.94 21.15 3.95 59.54
PFSB PennFed Financial Services Inc 17.00 163.48 13.71 14.66 15.18 15.18 144.31 166.50 11.16 0.82 12.07
TSBS Peoples Bancorp Inc. 10.00 362.37 NA NA NA NA NA NA NA 1.00 NA
PLSK Pulaski Savings Bank (MHC) 17.88 37.68 31.92 NA NA 31.92 171.22 171.22 19.75 1.68 NA
PULS Pulse Bancorp 27.63 86.20 16.44 15.70 15.88 16.44 190.91 190.91 15.92 2.90 42.61
RARB Raritan Bancorp Inc. 29.00 69.24 18.13 18.59 18.83 18.13 219.36 222.22 16.53 2.07 32.48
SFIN Statewide Financial Corp. 22.00 99.32 17.74 17.05 17.19 17.74 150.79 151.00 14.83 2.00 33.33
WYNE Wayne Bancorp Inc. 31.00 62.41 35.23 31.63 31.63 35.23 180.76 180.76 22.94 0.65 20.41
New Jersey Average 137.42 22.08 20.98 22.01 23.33 177.76 183.84 18.42 1.59 30.48
New Jersey Median 99.32 19.38 18.64 20.18 22.77 164.97 166.50 16.83 1.20 23.95
</TABLE>
Page 12 of 13
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of June 8, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------
Current Price in Relation to
-------------------------------------------------------
LTM
Current Current Price/ Tangible Current Dividend
Stock Market Earn- LTM LTM Price/ Book Book Dividend Payout
Price Value ings EPS Core EPS Core Value Value Assets Yield Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Group
CSBF CSB Financial Group Inc. 13.75 11.54 34.38 44.35 47.41 34.38 103.93 110.18 24.06 0.00 0.00
FLKY First Lancaster Bancshares 15.13 14.32 27.01 28.54 28.54 27.01 101.37 101.37 27.01 3.31 94.34
GLMR Gilmer Financial Svcs, Inc. 14.13 2.70 NM 117.71 20.77 NM 71.05 71.05 6.41 0.00 0.00
HBBI Home Building Bancorp 24.00 7.48 25.00 21.05 22.02 27.27 116.45 116.45 17.63 1.25 26.32
HWEN Home Financial Bancorp 9.13 8.48 14.26 20.28 24.66 14.26 113.64 113.64 20.45 1.10 22.22
LONF London Financial Corp. 15.25 7.78 15.25 17.73 19.06 15.89 149.07 149.07 20.52 1.57 609.30
MBSP Mitchell Bancorp Inc. 16.75 15.59 26.17 28.39 28.39 26.17 107.37 107.37 42.22 2.39 67.80
PWBK Pennwood Bancorp Inc. 14.00 10.28 70.00 26.92 25.93 70.00 111.20 111.20 22.15 1.93 49.04
RELI Reliance Bancshares Inc. 8.56 20.30 30.58 40.78 42.82 30.58 91.98 91.98 45.96 0.00 0.00
SCCB S. Carolina Community Bancshrs 21.75 12.61 24.72 29.39 29.39 24.72 133.60 133.60 27.23 2.94 83.78
Comparable Average 11.11 29.71 37.51 28.90 30.03 109.97 110.59 25.36 1.45 95.28
Comparable Median 10.91 26.17 28.47 27.16 27.01 109.29 110.69 23.11 1.41 37.68
All Public Average 276.81 22.79 23.33 25.79 26.26 171.31 178.18 20.51 1.55 50.06
All Public Median 66.22 19.23 19.93 21.32 20.87 154.11 157.39 18.69 1.52 29.26
New Jersey Average 137.42 22.08 20.98 22.01 23.33 177.76 183.84 18.42 1.59 30.48
New Jersey Median 99.32 19.38 18.64 20.18 22.77 164.97 166.50 16.83 1.20 23.95
</TABLE>
Page 13 of 13
<PAGE>
Exhibit 9
Standard Conversions - 1997 to Date
Selected Market Data
Market Data as of 06/08/98
<TABLE>
<CAPTION>
----------------------------------------
Price to Pro-Forma
----------------------------------------
Ad-
IPO Gross Conversion Total Pro-Forma Pro-Forma Pro-Forma justed
Price Proceeds Assets Equity Book Value Tang. Book Earnings Assets
Ticker Short Name IPO Date ($) ($000) ($000) ($000) (%) (%) (x) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CFKY Columbia Financial of Kentucky 04/15/98 10.000 26,715 104,006 35,863 74.5 74.5 19.6 20.4
EFC EFC Bancorp Inc. 04/07/98 10.000 69,365 315,910 90,516 76.6 76.6 13.5 18.0
HBSC Heritage Bancorp Inc. 04/06/98 15.000 69,431 247,499 89,014 78.0 78.0 16.1 21.9
NEP Northeast PA Financial Corp. 04/01/98 10.000 59,515 369,242 78,908 75.4 75.4 18.7 13.9
--------------------------------------------------------------------------------------------------------------------------
Q2`98 Average 76.1 76.1 17.0 18.6
Median 76.0 76.0 17.4 19.2
--------------------------------------------------------------------------------------------------------------------------
BYS Bay State Bancorp 03/30/98 20.000 46,949 233,074 59,695 78.6 78.6 20.9 16.8
HLFC Home Loan Financial Corp. 03/26/98 10.000 22,483 60,401 29,603 75.9 75.9 17.0 27.1
CAVB Cavalry Bancorp Inc. 03/17/98 10.000 75,383 275,925 94,465 79.8 79.8 14.3 21.5
ICBC Independence Comm. Bank Corp. 03/17/98 10.000 704,109 3,733,316 912,373 77.2 82.7 17.9 15.9
RCBK Richmond County Financial Corp 02/18/98 10.000 244,663 993,370 307,206 79.6 79.6 14.0 19.8
HFBC HopFed Bancorp Inc. 02/09/98 10.000 40,336 202,496 53,478 75.4 75.4 12.4 16.6
TSBK Timberland Bancorp Inc. 01/13/98 10.000 66,125 206,188 81,091 81.5 81.5 10.5 24.3
MYST Mystic Financial Inc. 01/09/98 10.000 27,111 149,653 34,869 77.8 77.8 17.5 15.3
UTBI United Tennessee Bankshares 01/05/98 10.000 14,548 64,189 18,556 78.4 78.4 16.1 18.5
--------------------------------------------------------------------------------------------------------------------------
Q1`98 Average 78.2 78.9 15.6 19.5
Median 78.4 78.6 16.1 18.5
--------------------------------------------------------------------------------------------------------------------------
1998 YTD Average 77.6 78.0 16.0 19.2
Median 77.8 78.0 16.1 18.5
--------------------------------------------------------------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 12/31/97 10.000 21,821 60,538 29,534 73.9 73.9 15.9 26.5
UCBC Union Community Bancorp 12/29/97 10.000 30,418 84,291 41,044 74.1 74.1 13.5 26.5
WSBI Warwick Community Bancorp 12/23/97 10.000 64,141 286,545 82,152 78.1 78.1 13.5 18.3
SIB Staten Island Bancorp Inc. 12/22/97 12.000 515,775 2,144,500 640,283 80.6 83.0 14.1 19.4
HCBC High Country Bancorp Inc. 12/10/97 10.000 13,225 76,324 17,010 77.7 77.7 30.5 14.8
FSFF First SecurityFed Financial 10/31/97 10.000 64,080 258,115 84,543 75.8 75.8 25.9 19.9
OTFC Oregon Trail Financial Corp. 10/06/97 10.000 46,949 204,213 61,266 76.6 76.6 18.5 18.7
RVSB Riverview Bancorp Inc. 10/01/97 10.000 NA NA NA 100.0 100.0 NA NA
SHSB SHS Bancorp Inc. 10/01/97 10.000 8,200 81,688 11,593 70.7 70.7 12.5 9.1
--------------------------------------------------------------------------------------------------------------------------
Q4 `97 Average 78.6 78.9 18.1 19.2
Median 76.6 76.6 15.0 19.1
--------------------------------------------------------------------------------------------------------------------------
OSFS Ohio State Financial Services 09/29/97 10.000 6,332 33,929 9,998 63.3 63.3 17.0 15.7
FSPT FirstSpartan Financial Corp. 07/09/97 20.000 88,608 375,526 121,408 73.0 73.0 19.5 19.1
GOSB GSB Financial Corp. 07/09/97 10.000 22,483 96,323 30,613 73.4 73.4 19.0 18.9
FBNW FirstBank Corp. 07/02/97 10.000 19,838 133,194 27,578 71.9 71.9 18.0 13.0
--------------------------------------------------------------------------------------------------------------------------
Q3`97 Average 70.4 70.4 18.4 16.7
Median 72.5 72.5 18.5 17.3
--------------------------------------------------------------------------------------------------------------------------
HCBB HCB Bancshares Inc. 05/07/97 10.000 26,450 171,241 36,760 72.0 72.0 26.2 13.4
PSFC Peoples-Sidney Financial Corp. 04/28/97 10.000 17,854 86,882 25,061 71.2 71.2 11.5 17.0
HMLK Hemlock Federal Financial Corp 04/02/97 10.000 20,763 146,595 28,989 71.6 71.6 37.5 12.4
GSLA GS Financial Corp. 04/01/97 10.000 34,385 86,521 53,934 63.8 63.8 38.7 28.4
--------------------------------------------------------------------------------------------------------------------------
Q2 '97 Average 69.7 69.6 28.5 17.8
Median 71.4 71.4 31.9 15.2
--------------------------------------------------------------------------------------------------------------------------
MRKF Market Financial Corp. 03/27/97 10.000 13,357 45,547 18,795 71.1 71.1 26.2 22.7
EFBC Empire Federal Bancorp Inc. 01/27/97 10.000 25,921 86,810 38,067 68.1 68.1 21.5 23.0
FAB FIRSTFED AMERICA BANCORP INC. 01/15/97 10.000 87,126 723,778 120,969 72.0 72.0 13.6 10.7
RSLN Roslyn Bancorp Inc. 01/13/97 10.000 423,714 1,596,744 588,624 72.0 72.0 9.3 21.0
AFBC Advance Financial Bancorp 01/02/97 10.000 10,845 91,852 15,256 71.1 71.1 16.8 10.6
--------------------------------------------------------------------------------------------------------------------------
Q1 '97 Average 70.9 70.9 17.5 17.6
Median 71.1 71.1 16.8 21.0
--------------------------------------------------------------------------------------------------------------------------
1997 Average 73.7 73.8 20.0 18.1
Median 72.0 72.0 18.0 18.7
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
1/1/97 toAverage 75.2 75.4 18.5 18.5
6/8/98 Median 75.4 75.4 17.0 18.6
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Exhibit 9
Standard Conversions - 1997 to Date
Selected Market Data
Market Data as of 06/08/98
--------------------------------------
Percent Change from IPO
--------------------------------------
After After After After
1 Day 1 Week 1 Month 3 Months
Ticker Short Name (%) (%) (%) (%)
- --------------------------------------------------------------------------------
CFKY Columbia Financial of Kentucky 71.25% 59.38% 60.00% NA
EFC EFC Bancorp Inc. 47.50% 49.38% 41.25% NA
HBSC Heritage Bancorp Inc. NA % 46.25% 45.83% NA
NEP Northeast PA Financial Corp. 55.00% 53.75% 54.38% NA
----------------------------------------------------------------------
Q2`98 Average 57.92% 52.19% 50.37% -
Median 55.00% 51.57% 50.11% -
----------------------------------------------------------------------
BYS Bay State Bancorp 46.88% 48.13% 50.63% NA
HLFC Home Loan Financial Corp. 52.50% 61.88% 67.50% NA
CAVB Cavalry Bancorp Inc. 105.61% 43.751 40.00% NA
ICBC Independence Comm. Bank Corp. 72.50% 75.63% 81.25% NA
RCBK Richmond County Financial Corp 63.13% 64.38% 78.75% 87.50%
HFBC HopFed Bancorp Inc. 68.131 60.00% 67.501 18.75%
TSBK Timberland Bancorp Inc. 45.00% 60.00% 60.00% 76.25%
MYST Mystic Financial Inc. 44.38% 56.25% 50.00% 73.75%
UTBI United Tennessee Bankshares 47.50% 37.50% 42.50% 50.00%
----------------------------------------------------------------------
Q1`98 Average 60.63% 67.50% 70.90% 81.25%
Median 52.50% 60.00% 67.50% 76.25%
----------------------------------------------------------------------
----------------------------------------------------------------------
1998 YTD Average 59.95% 62.79% 64.58% 81.25%
Median 53.75% 59.38% 60.00% 76.25%
----------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 61.25% 55.00% 48.75% 57.50%
UCBC Union Community Bancorp 46.88% 42.50% 42.50% 58.13%
WSBI Warwick Community Bancorp 56.25% 70.00% 56.25% 75.63%
SIB Staten Island Bancorp Inc. 58.86% 61.98% 59.90% 74.48%
HCBC High Country Bancorp Inc. 44.38% 50.63% 45.00% 50.00%
FSFF First SecurityFed Financial 50.63% 51.25% 60.63% 46.88%
OTFC Oregon Trail Financial Corp. 67.50% 63.75% 61.25% 67.50%
RVSB Riverview Bancorp Inc. 31.88% 36.25% 32.50% 77.50%
SHSB SHS Bancorp Inc. 47.50% 62.50% 60.00% 67.50%
----------------------------------------------------------------------
Q4 `97 Average 51.68% 54.87% 51.86% 63.90%
Median 50.63% 55.00% 56.25% 67.50%
----------------------------------------------------------------------
OSFS Ohio State Financial Services 55.00% 53.70% 49.60% 52.50%
FSPT FirstSpartan Financial Corp. 83.44% 85.00% 78.13% 91.88%
GOSB GSB Financial Corp. 46.25% 48.75% 43.75% 55.00%
FBNW FirstBank Corp. 58.13% 55.63% 77.50% 72.50%
----------------------------------------------------------------------
Q3`97 Average 60.71% 60.77% 62.24% 67.97%
Median 56.57% 54.67% 63.55% 63.75%
----------------------------------------------------------------------
HCBB HCB Bancshares Inc. 26.25% 27.50% 28.75% 38.75%
PSFC Peoples-Sidney Financial Corp. 25.63% 28.75% 32.50% 55.00%
HMLK Hemlock Federal Financial Corp 28.75% 28.75% 30.00% 40.00%
GSLA GS Financial Corp. 33.75% 37.50% 40.00% 51.25%
----------------------------------------------------------------------
Q2 '97 Average 28.60% 30.63% 32.81% 46.25%
Median 27.50% 28.75% 31.25% 45.63%
----------------------------------------------------------------------
MRKF Market Financial Corp. 29.38% 22.50% 26.25% 37.50%
EFBC Empire Federal Bancorp Inc. 32.50% 35.00% 37.50% 31.25%
FAB FIRSTFED AMERICA BANCORP INC. 36.25% 41.25% 48.75% 38.75%
RSLN Roslyn Bancorp Inc. 50.00% 59.38% 60.00% 58.75%
AFBC Advance Financial Bancorp 28.75% 29.38% 40.00% 40.00%
----------------------------------------------------------------------
Q1 '97 Average 35.38% 37.50% 42.50% 41.25%
Median 32.50% 35.00% 40.00% 38.75%
----------------------------------------------------------------------
----------------------------------------------------------------------
1997 Average 45.42% 47.59% 48.16% 56.28%
Median 46.57% 49.69% 46.88% 55.00%
----------------------------------------------------------------------
----------------------------------------------------------------------
1/1/97 toAverage 50.55% 53.24% 54.26% 60.91%
6/8/98 Median 47.50% 53.70% 50.00% 57.50%
----------------------------------------------------------------------
Page 1
Continued
<PAGE>
Exhibit 9
Standard Conversions - 1997 to Date
Selected Market Data
Market Data as of 06/08/98
<TABLE>
<CAPTION>
------------------------------------------------------------------
Current Price to
------------------------------------------------------------------
Current
Stock Book Tang. LTM Core LTM
Price Value Book Earnings Earnings EPS EPS Assets
Short Name 06/08/98 (%) (%) (X) (X) (X) (X) (%)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Columbia Financial of Kentucky 15.000 NA NA NA NA NA NA NA
EFC Bancorp Inc. 13.563 NA NA NA NA NA NA NA
Heritage Bancorp Inc. 20.250 NA NA NA NA NA NA NA
Northeast PA Financial Corp. 14.000 NA NA NA NA NA NA NA
- ----------------------------------------------------------------------------------------------------
Average 15.703 - - - - - - -
Median 14.500 - - - - - - -
- ----------------------------------------------------------------------------------------------------
Bay State Bancorp 27.750 102.70 102.70 NA NA NA NA 23.82
Home Loan Financial Corp. 15.250 110.35 110.35 NA NA NA NA 42.98
Cavalry Bancorp Inc. 22.750 171.96 171.96 NA NA NA NA 48.88
Independence Comm. Bank Corp. 16.938 NA NA NA NA NA NA NA
Richmond County Financial Corp 19.125 156.63 157.28 NA NA NA NA 34.52
HopFed Bancorp Inc. 20.688 145.08 145.08 NA NA NA NA 37.69
Timberland Bancorp Inc. 16.688 121.02 121.02 NA NA NA NA 38.89
Mystic Financial Inc. 15.250 115.53 115.53 NA NA NA NA 22.02
United Tennessee Bankshares 14.875 106.86 106.86 NA NA NA NA 28.83
- ----------------------------------------------------------------------------------------------------
Average 18.813 128.77 128.85 - - - - 34.70
Median 16.938 118.28 118.28 - - - - 36.11
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Average 17.856 128.77 128.85 - - - - 34.70
Median 16.688 118.28 118.28 - - - - 36.11
- ----------------------------------------------------------------------------------------------------
Great Pee Dee Bancorp 15.500 109.23 109.23 NA 22.79 22.79 NA 49.28
Union Community Bancorp 14.875 104.61 104.61 NA 19.57 19.57 NA 41.87
Warwick Community Bancorp 16.688 128.96 128.96 NA NA NA NA 29.73
Staten Island Bancorp Inc. 21.688 139.83 143.53 NA 21.69 22.59 NA 36.64
High Country Bancorp Inc. 15.000 109.89 109.89 NA 23.44 23.44 NA 21.50
First SecurityFed Financial 16.750 114.80 115.12 NA 17.45 17.45 NA 33.20
Oregon Trail Financial Corp. 16.500 107.56 107.56 NA NA NA NA 27.81
Riverview Bancorp Inc. 17.000 171.20 177.08 NA 18.48 20.24 NA 38.30
SHS Bancorp Inc. 17.750 118.89 118.89 NA 16.44 20.17 NA 16.46
- ----------------------------------------------------------------------------------------------------
Average 16.861 122.77 123.87 - 19.98 20.89 - 32.75
Median 16.688 114.80 115.12 - 19.57 20.24 - 33.20
- ----------------------------------------------------------------------------------------------------
Ohio State Financial Services 16.000 97.15 097.150 NA NA NA NA 26.320
FirstSpartan Financial Corp. 44.000 147.30 147.300 NA 23.91 025.000 NA 38.730
GSB Financial Corp. 17.250 115.93 115.930 NA 39.20 039.200 NA 32.630
FirstBank Corp. 20.250 123.48 123.480 NA 16.88 026.640 NA 21.890
- ----------------------------------------------------------------------------------------------------
Average 24.375 120.97 120.97 - 26.66 30.28 - 29.89
Median 18.750 119.71 119.71 - 23.91 26.64 - 29.48
- ----------------------------------------------------------------------------------------------------
HCB Bancshares Inc. 15.000 103.8 107.5 NA 53.6 53.6 NA 19.4
Peoples-Sidney Financial Corp. 24.188 151.4 151.4 NA 30.2 30.2 NA 40.9
Hemlock Federal Financial Corp 18.313 118.5 118.5 NA 21.8 21.8 NA 19.2
GS Financial Corp. 17.375 108.1 108.1 NA 27.2 39.5 NA 45.0
- ----------------------------------------------------------------------------------------------------
Average 18.719 120.42 121.35 - 33.19 36.28 - 31.11
Median 17.844 113.25 113.25 - 28.70 34.87 - 30.15
- ----------------------------------------------------------------------------------------------------
Market Financial Corp. 13.750 90.2 90.2 26.4 28.7 28.7 26.4 31.8
Empire Federal Bancorp Inc. 16.625 106.0 106.0 24.8 24.5 24.5 24.8 39.0
FIRSTFED AMERICA BANCORP INC. 20.250 126.6 126.6 24.1 28.1 36.2 28.5 13.8
Roslyn Bancorp Inc. 22.313 153.8 154.5 19.9 16.4 19.2 20.9 25.8
Advance Financial Bancorp 18.500 127.4 127.4 19.5 16.5 18.5 20.8 18.0
- ----------------------------------------------------------------------------------------------------
Average 18.288 120.80 120.95 22.95 22.83 25.40 24.28 25.65
Median 18.500 126.64 126.64 24.11 24.45 24.45 24.81 25.78
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Average 18.889 121.57 122.22 22.95 24.57 26.80 24.28 30.32
Median 17.125 117.19 117.19 24.11 22.79 23.44 24.81 30.77
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Average 18.505 123.49 123.99 22.95 24.57 26.80 24.28 31.49
Median 16.938 117.19 117.19 24.11 22.79 23.44 24.81 32.22
- ----------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
Peoples Savings Bank
Pro-Forma Analysis Sheet - Twelve Months Ended
March 31, 1998
Includes SOP 93-6
----------------------------------------------------------------------------------------------
Bank Comparables State National
----------------------------------------------------------------------------------------------
Mean Median Mean Median Mean Median
---- ------ ---- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Min 12.05
Price-Earnings Ratio P/E Mid 13.70 37.51 28.47 20.98 18.64 23.33 19.93
Max 14.93
Smax 16.95
Min 70.52%
Price-to-Book Ratio P/B Mid 74.85% 109.97% 109.29% 177.76% 164.97% 171.31% 154.11%
Max 78.31%
Smax 81.63%
Min 70.52%
Price-to-Tangible Book Ratio P/TB Mid 74.85% 110.59% 110.69% 183.84% 166.50% 178.18% 157.39%
Max 78.31%
Smax 81.63%
Min 8.51%
Price-to-Assets Ratio P/A Mid 9.88% 25.36% 23.11% 18.42% 16.83% 20.51% 18.69%
Max 11.21%
Smax 12.71%
</TABLE>
Page 1
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Valuation Parameters
- --------------------------------------------------------------------------------------------------
Twelve Months Ended Y
Period Ended March 31, 1998 $ 244 (1)
- --------------------------------------------------------------------------------------------------
Pre-Conversion Book Value B
As of March 31, 1998 $ 2,225
- --------------------------------------------------------------------------------------------------
Pre-Conversion Assets A
As of March 31, 1998 $ 38,685
- --------------------------------------------------------------------------------------------------
Return on Money R 3.41%(2)
- --------------------------------------------------------------------------------------------------
Conversion Expenses $ 330
X 7.95%(3)
- --------------------------------------------------------------------------------------------------
Proceeds Not Invested $ 498 (4)
- --------------------------------------------------------------------------------------------------
Estimated ESOP Borrowings $ 332
ESOP Purchases E 8.00%(5)
Cost of ESOP Borrowings $ 33 (5)
Cost of ESOP Borrowings S 0.00%(5)
Amort of ESOP Borrowings T 10 Years
- --------------------------------------------------------------------------------------------------
Amort of MRP Amount N 5 Years
Estimated MRP Amount $ 166 (6)
MRP Purchases M 4.00%
MRP Expense $ 33
- --------------------------------------------------------------------------------------------------
Foundation Amount $ - (7)
Foundation Amount F 0.00% 0.00%
Foundation Opportunity Cost $ -
Tax Benefit Z $ - (8)
- --------------------------------------------------------------------------------------------------
Tax Rate TAX 37.00%
- --------------------------------------------------------------------------------------------------
Percentage Sold PCT 100.00%
- --------------------------------------------------------------------------------------------------
Amount to be issued to Public $ 4,150 (9)
- --------------------------------------------------------------------------------------------------
Earnings Multiple (1 if stub period, 0 if full twelve months) 12 0
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) Net income for the 12 months ended March 31, 1998.
(2) Net Return assumes a reinvestment rate of 5.41 percent (the 1 year Treasury
at March 31, 1998), and a tax rate of 37%.
(3) Conversion expenses reflect estimated expenses as presented in the offering
document.
(4) Includes Stock from ESOP and MRP.
(5) Assumes ESOP is amortized straight line over 10 years.
(6) Assumes MRP is amortized straight line over 5 years.
(7) Not applicable.
(8) Not Applicable.
(9) The amount to be offered to public.
Page 2
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
Pro Forma Calculation
<S> <C> <C> <C>
Calculation of Estimated Value (V) at Midpoint Value
3. V= P/E*Y = $4,150,000
1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N)
2. V= P/B*(B+Z) = $4,150,000
1-P/B*PCT*(1-X-E-M-F)
1. V= P/A*A = $4,150,000
1-P/A*PCT*(1-X-E-M-F)
</TABLE>
The appraisal was performed on a market basis and did not utilize the above
formulas.
<TABLE>
<CAPTION>
Total Shares Price Total
Conclusion Shares Per Share Value
- ---------- ------------ --------- -----------
<S> <C> <C> <C>
Appraised Value - Midpoint 415,000 $ 10 $ 4,150,000
Range:
- Minimum 352,750 $ 10 3,527,500
- Maximum 477,250 10 4,772,500
- Super Maximum 548,838 10 5,488,380
</TABLE>
<TABLE>
<CAPTION>
Pre Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum *
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Shares 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Full Conversion Value $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Shares 0 0 0 0
Exchange Percent 0.00% 0.00% 0.00% 0.00%
Conversion Shares 352,750 415,000 477,250 548,838
Conversion Percent 100.00% 100.00% 100.00% 100.00%
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
Exchange Ratio 0.0000 0.0000 0.0000 0.0000
--------------------------------------------------------------------
</TABLE>
* SuperMaximum is an overallotment option that is 15% above the maximum amount.
Page 3
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of March 31, 1998
(Dollars in Thousands)
- --------------------------------------- --------------------------------------------------------------------
Conversion Proceeds Minimum Midpoint Maximum SuperMax
- --------------------------------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Shares Offered 352,750 415,000 477,250 548,838
Conversion Shares Offered 352,750 415,000 477,250 548,838
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 3,528 $ 4,150 $ 4,773 $ 5,488
Plus: Value issued to Foundation (9) - - - -
--------------------------------------------------------------------
Pro Forma Market Capitalization 3,528 4,150 4,773 5,488
====================================================================
Gross Proceeds 3,528 4,150 4,773 5,488
Less: Est. Conversion Expenses 330 330 330 330
====================================================================
Net Proceeds $ 3,198 $ 3,820 $ 4,443 $ 5,158
====================================================================
- ---------------------------------------
Estimated Income from Proceeds
- ---------------------------------------
Net Conversion Proceeds $ 3,198 $ 3,820 $ 4,443 $ 5,158
Less: ESOP Adjustment (3) 282 332 382 439
Less: MRP Adjustment (3) 141 166 191 220
--------------------------------------------------------------------
Net Proceeds Reinvested $ 2,775 $ 3,322 $ 3,870 $ 4,499
Estimated Incremental Rate of Return 3.41% 3.41% 3.41% 3.41%
--------------------------------------------------------------------
Estimated Incremental Return $ 95 $ 113 $ 132 $ 153
Less: Cost of ESOP (4) - - - -
Less: Amortization of ESOP (7) 18 21 24 28
Less: MRP Adjustment (7) 18 21 24 28
--------------------------------------------------------------------
Pro-forma Net Income 59 71 84 97
Earnings Before Conversion 244 244 244 244
--------------------------------------------------------------------
Earnings Excluding Adjustment 303 315 328 341
Earnings Adjustment (6) (34) (34) (34) (34)
--------------------------------------------------------------------
Earnings After Conversion $ 269 $ 281 $ 294 $ 307
--------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of March 31, 1998
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Pro-forma Net Worth
- ---------------------------------------
Net Worth at March 31, 1998 $ 2,225 $ 2,225 $ 2,225 $ 2,225
Net Conversion Proceeds 3,198 3,820 4,443 5,158
Plus: MHC Adjustment (7) - - - -
Plus: After tax Foundation Contribution - - - -
Less: ESOP Adjustment (1) (282) (332) (382) (439)
Less: MRP Adjustment (2) (141) (166) (191) (220)
--------------------------------------------------------------------
Pro-forma Net Worth $ 5,000 $ 5,547 $ 6,095 $ 6,724
- ---------------------------------------
Pro-forma Tangible Net Worth
- ---------------------------------------
Pro-forma Net Worth $ 5,000 $ 5,547 $ 6,095 $ 6,724
Less: Intangible (5) - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth $ 5,000 $ 5,547 $ 6,095 $ 6,724
- ---------------------------------------
Pro-forma Assets
- ---------------------------------------
Total Assets at March 31, 1998 $ 38,685 $ 38,685 $ 38,685 $ 38,685
Net Conversion Proceeds 3,198 3,820 4,443 5,158
Plus: MHC Adjustment (7) - - - -
Plus: Tax Benefit of Foundation - - - -
Less: ESOP Adjustment (1) (282) (332) (382) (439)
Less: MRP Adjustment (2) (141) (166) (191) (220)
--------------------------------------------------------------------
Pro-forma Assets Excluding Adjustment 41,460 42,007 42,555 43,184
Plus: Adjustment (6) - - - -
--------------------------------------------------------------------
Pro-forma Total Assets $ 41,460 $ 42,007 $ 42,555 $ 43,184
--------------------------------------------------------------------
- ---------------------------------------
Stockholder's Equity Per Share
- ---------------------------------------
Net Worth at March 31, 1998 $ 6.31 $ 5.36 $ 4.66 $ 4.05
Estimated Net Proceeds 9.07 9.20 9.31 9.40
Plus: MHC Adjustment - - - -
Plus: Foundation Contribution - - - -
Less: ESOP Stock (0.80) (0.80) (0.80) (0.80)
Less: MRP Stock (0.40) (0.40) (0.40) (0.40)
--------------------------------------------------------------------
Pro-forma Net Worth Per Share 14.18 13.36 12.77 12.25
Less: Intangible - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth Per Share $ 14.18 $ 13.36 $ 12.77 $ 12.25
--------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of March 31, 1998
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Net Earnings Per Share
- ---------------------------------------
Historical Earnings Per Share (8) $ 0.74 $ 0.63 $ 0.55 $ 0.48
Incremental return Per Share (8) 0.29 0.29 0.30 0.30
ESOP Adjustment Per Share (8) (0.05) (0.05) (0.05) (0.06)
MRP Adjustment Per Share (8) (0.05) (0.05) (0.05) (0.06)
Normalizing Adjustment Per Share (0.10) (0.09) (0.10) (0.07)
----------------------------------------------------------------------
Proforma Earnings Per Share (8) $ 0.83 $ 0.73 $ 0.67 $ 0.59
- ---------------------------------------
Shares Utilized
- ---------------------------------------
Shares Utilized 328 385 443 509
- ---------------------------------------
Pro-forma Ratios
- ---------------------------------------
Price/EPS without Adjustment 10.75 12.20 13.33 15.15
Price/EPS with Adjustment 12.05 13.70 14.93 16.95
Price/Book Value per Share 70.52% 74.85% 78.31% 81.63%
Price/Tangible Book Value 70.52% 74.85% 78.31% 81.63%
Market Value/Assets 8.51% 9.88% 11.21% 12.71%
--------------------------------------------------------------------------
</TABLE>
(1) ESOP Borrowings are deducted from net worth and assets, and amortized over
10 years.
(2) MRP Borrowings are omitted from net worth and assets, and amortized over
5 years.
(3) Consists of ESOP and MRP amortization.
(4) The ESOP loan is from the Holding Company and therefore, there are no costs.
(5) Not applicable.
(6) Not applicable.
(7) ESOP and MRP are amortized over 10 and 5 years respectively, and tax
impacted at 37%.
(8) All EPS computations are done in accordance with SOP 93-6.
(9) Not applicable.
Page 6
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Expense Calculations
- ---------------------------------------
Total Shares Offered 353 415 477 549
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 3,528 $ 4,150 $ 4,773 $ 5,488
Estimated Insider Purchases - - - -
ESOP Purchases (282) (332) (382) (439)
--------------------------------------------------------------------
Proceeds to Base Fee On $ 3,246 $ 3,818 $ 4,391 $ 5,049
Underwriters Percentage 0.00% 0.00% 0.00% 0.00%
--------------------------------------------------------------------
Underwriters Fee $ - $ - $ - $ -
Advisory Fee - - - -
--------------------------------------------------------------------
Total Underwriters Fee - - - -
All Other Expenses 330 330 330 330
--------------------------------------------------------------------
Total Expense $ 330 $ 330 $ 330 $ 330
- ---------------------------------------
Shares Calculations
- ---------------------------------------
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment (1) 0 0 0 0
Plus: New SOP 93-6 ESOP Shares (2) 3 3 4 4
Plus: Old SOP 93-6 ESOP Shares (2) 0 0 0 0
- - - -
Shares for all EPS Calculations 328 385 443 509
</TABLE>
<TABLE>
<CAPTION>
Post Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Exchanged 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Shares Issued to Foundation - - - -
Total Shares 352,750 415,000 477,250 548,838
Exchange Shares - - - -
Conversion Shares 352,750 415,000 477,250 548,838
Implied Exhange Ratio - - - -
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
--------------------------------------------------------------------
</TABLE>
Page 7
<PAGE>
Exhibit 10 Stub Period - No Foundation
<TABLE>
<CAPTION>
- ---------------------------------------
MRP Dilution
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment 0 0 0 0
Plus: New MRP issued (1) 14 17 19 22
Plus: New SOP 93-6 ESOP Shares (2) 3 3 4 4
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 342 402 462 531
EPS $ 0.90 $ 0.80 $ 0.72 $ 0.66
BV/Share $13.63 $12.85 $12.28 $11.78
Voting Dilution 4.30% 4.31% 4.31% 4.32%
- -------------------------------------------------------------------------------------------------------------------
- ---------------------------------------
Option Dilution
- -------------------------------------------------------------------------------------------------------------------
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment 0 0 0 0
Plus: Options (1) 35 42 48 55
Plus: New SOP 93-6 ESOP Shares (2) 3 3 4 4
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 363 427 491 564
EPS $ 0.83 $ 0.74 $ 0.67 $ 0.60
BV/Share $13.79 $13.06 $12.52 $12.05
Voting Dilution 10.76% 10.78% 10.77% 10.79%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 8
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
Peoples Savings Bank
Pro-Forma Analysis Sheet - Six Months Ended
March 31, 1998
Includes SOP 93-6
----------------------------------------------------------------------------------------------
Bank Comparables State National
----------------------------------------------------------------------------------------------
Mean Median Mean Median Mean Median
---- ------ ---- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Min 11.63
Price-Earnings Ratio P/E Mid 12.82 37.51 28.47 20.98 18.64 23.33 19.93
Max 14.29
Smax 16.13
Min 70.52%
Price-to-Book Ratio P/B Mid 74.85% 109.97% 109.29% 177.76% 164.97% 171.31% 154.11%
Max 78.31%
Smax 81.63%
Min 70.52%
Price-to-Tangible Book Ratio P/TB Mid 74.85% 110.59% 110.69% 183.84% 166.50% 178.18% 157.39%
Max 78.31%
Smax 81.63%
Min 8.51%
Price-to-Assets Ratio P/A Mid 9.88% 25.36% 23.11% 18.42% 16.83% 20.51% 18.69%
Max 11.21%
Smax 12.71%
</TABLE>
Page 1
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Valuation Parameters
- --------------------------------------------------------------------------------------------------
Six Months Ended Y
Period Ended March 31, 1998 $ 114 (1)
- --------------------------------------------------------------------------------------------------
Pre-Conversion Book Value B
As of March 31, 1998 $ 2,225
- --------------------------------------------------------------------------------------------------
Pre-Conversion Assets A
As of March 31, 1998 $ 38,685
- --------------------------------------------------------------------------------------------------
Return on Money R 3.41%(2)
- --------------------------------------------------------------------------------------------------
Conversion Expenses $ 330
X 7.95%(3)
- --------------------------------------------------------------------------------------------------
Proceeds Not Invested $ 498 (4)
- --------------------------------------------------------------------------------------------------
Estimated ESOP Borrowings $ 332
ESOP Purchases E 8.00%(5)
Cost of ESOP Borrowings $ 33 (5)
Cost of ESOP Borrowings S 0.00%(5)
Amort of ESOP Borrowings T 10 Years
- --------------------------------------------------------------------------------------------------
Amort of MRP Amount N 5 Years
Estimated MRP Amount $ 166 (6)
MRP Purchases M 4.00%
MRP Expense $ 33
- --------------------------------------------------------------------------------------------------
Foundation Amount $ - (7)
Foundation Amount F 0.00% 0.00%
Foundation Opportunity Cost $ -
Tax Benefit Z $ - (8)
- --------------------------------------------------------------------------------------------------
Tax Rate TAX 37.00%
- --------------------------------------------------------------------------------------------------
Percentage Sold PCT 100.00%
- --------------------------------------------------------------------------------------------------
Amount to be issued to Public $ 4,150 (9)
- --------------------------------------------------------------------------------------------------
Earnings Multiple (1 if stub period, 0 if full twelve months) 6 1
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) Net income for the 6 months ended March 31, 1998.
(2) Net Return assumes a reinvestment rate of 5.41 percent (the 1 year Treasury
at March 31, 1998), and a tax rate of 37%.
(3) Conversion expenses reflect estimated expenses as presented in the offering
document.
(4) Includes Stock from ESOP and MRP.
(5) Assumes ESOP is amortized straight line over 10 years.
(6) Assumes MRP is amortized straight line over 5 years.
(7) Not applicable.
(8) Not Applicable.
(9) The amount to be offered to public.
Page 2
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
Pro Forma Calculation
<S> <C> <C> <C>
Calculation of Estimated Value (V) at Midpoint Value
3. V= P/E*Y = $4,150,000
-----
1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N)
2. V= P/B*(B+Z) = $4,150,000
---------
1-P/B*PCT*(1-X-E-M-F)
1. V= P/A*A = $4,150,000
-----
1-P/A*PCT*(1-X-E-M-F)
</TABLE>
The appraisal was performed on a market basis and did not utilize the above
formulas.
<TABLE>
<CAPTION>
Total Shares Price Total
Conclusion Shares Per Share Value
- ---------- ------------ --------- -----------
<S> <C> <C> <C>
Appraised Value - Midpoint 415,000 $ 10 $ 4,150,000
Range:
- Minimum 352,750 $ 10 3,527,500
- Maximum 477,250 10 4,772,500
- Super Maximum 548,838 10 5,488,380
</TABLE>
<TABLE>
<CAPTION>
Pre Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum *
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Shares 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Full Conversion Value $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Shares 0 0 0 0
Exchange Percent 0.00% 0.00% 0.00% 0.00%
Conversion Shares 352,750 415,000 477,250 548,838
Conversion Percent 100.00% 100.00% 100.00% 100.00%
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
Exchange Ratio 0.0000 0.0000 0.0000 0.0000
--------------------------------------------------------------------
</TABLE>
* SuperMaximum is an overallotment option that is 15% above the maximum amount.
Page 3
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of March 31, 1998
(Dollars in Thousands)
- --------------------------------------- --------------------------------------------------------------------
Conversion Proceeds Minimum Midpoint Maximum SuperMax
- --------------------------------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Shares Offered 352,750 415,000 477,250 548,838
Conversion Shares Offered 352,750 415,000 477,250 548,838
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 3,528 $ 4,150 $ 4,773 $ 5,488
Plus: Value issued to Foundation (9) - - - -
--------------------------------------------------------------------
Pro Forma Market Capitalization 3,528 4,150 4,773 5,488
====================================================================
Gross Proceeds 3,528 4,150 4,773 5,488
Less: Est. Conversion Expenses 330 330 330 330
====================================================================
Net Proceeds $ 3,198 $ 3,820 $ 4,443 $ 5,158
====================================================================
- ---------------------------------------
Estimated Income from Proceeds
- ---------------------------------------
Net Conversion Proceeds $ 3,198 $ 3,820 $ 4,443 $ 5,158
Less: ESOP Adjustment (3) 282 332 382 439
Less: MRP Adjustment (3) 141 166 191 220
--------------------------------------------------------------------
Net Proceeds Reinvested $ 2,775 $ 3,322 $ 3,870 $ 4,499
Estimated Incremental Rate of Return 3.41% 3.41% 3.41% 3.41%
--------------------------------------------------------------------
Estimated Incremental Return $ 47 $ 57 $ 66 $ 77
Less: Cost of ESOP (4) - - - -
Less: Amortization of ESOP (7) 9 10 12 14
Less: MRP Adjustment (7) 9 10 12 14
--------------------------------------------------------------------
Pro-forma Net Income 29 37 42 49
Earnings Before Conversion 114 114 114 114
--------------------------------------------------------------------
Earnings Excluding Adjustment 143 151 156 163
Earnings Adjustment (6) - - - -
--------------------------------------------------------------------
Earnings After Conversion $ 143 $ 151 $ 156 $ 163
--------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of March 31, 1998
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Pro-forma Net Worth
- ---------------------------------------
Net Worth at March 31, 1998 $ 2,225 $ 2,225 $ 2,225 $ 2,225
Net Conversion Proceeds 3,198 3,820 4,443 5,158
Plus: MHC Adjustment (7) - - - -
Plus: After tax Foundation Contribution - - - -
Less: ESOP Adjustment (1) (282) (332) (382) (439)
Less: MRP Adjustment (2) (141) (166) (191) (220)
--------------------------------------------------------------------
Pro-forma Net Worth $ 5,000 $ 5,547 $ 6,095 $ 6,724
- ---------------------------------------
Pro-forma Tangible Net Worth
- ---------------------------------------
Pro-forma Net Worth $ 5,000 $ 5,547 $ 6,095 $ 6,724
Less: Intangible (5) - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth $ 5,000 $ 5,547 $ 6,095 $ 6,724
- ---------------------------------------
Pro-forma Assets
- ---------------------------------------
Total Assets at March 31, 1998 $ 38,685 $ 38,685 $ 38,685 $ 38,685
Net Conversion Proceeds 3,198 3,820 4,443 5,158
Plus: MHC Adjustment (7) - - - -
Plus: Tax Benefit of Foundation - - - -
Less: ESOP Adjustment (1) (282) (332) (382) (439)
Less: MRP Adjustment (2) (141) (166) (191) (220)
--------------------------------------------------------------------
Pro-forma Assets Excluding Adjustment 41,460 42,007 42,555 43,184
Plus: Adjustment (6) - - - -
--------------------------------------------------------------------
Pro-forma Total Assets $ 41,460 $ 42,007 $ 42,555 $ 43,184
--------------------------------------------------------------------
- ---------------------------------------
Stockholder's Equity Per Share
- ---------------------------------------
Net Worth at March 31, 1998 $ 6.31 $ 5.36 $ 4.66 $ 4.05
Estimated Net Proceeds 9.07 9.20 9.31 9.40
Plus: MHC Adjustment - - - -
Plus: Foundation Contribution - - - -
Less: ESOP Stock (0.80) (0.80) (0.80) (0.80)
Less: MRP Stock (0.40) (0.40) (0.40) (0.40)
--------------------------------------------------------------------
Pro-forma Net Worth Per Share 14.18 13.36 12.77 12.25
Less: Intangible - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth Per Share $ 14.18 $ 13.36 $ 12.77 $ 12.25
--------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of March 31, 1998
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Net Earnings Per Share
- ---------------------------------------
Historical Earnings Per Share (8) $ 0.35 $ 0.30 $ 0.26 $ 0.22
Incremental return Per Share (8) 0.14 0.15 0.15 0.15
ESOP Adjustment Per Share (8) (0.03) (0.03) (0.03) (0.03)
MRP Adjustment Per Share (8) (0.03) (0.03) (0.03) (0.03)
Normalizing Adjustment Per Share - - - -
----------------------------------------------------------------------
Proforma Earnings Per Share (8) $ 0.43 $ 0.39 $ 0.35 $ 0.31
- ---------------------------------------
Shares Utilized
- ---------------------------------------
Shares Utilized 326 384 441 507
- ---------------------------------------
Pro-forma Ratios
- ---------------------------------------
Price/EPS without Adjustment 11.63 12.82 14.29 16.13
Price/EPS with Adjustment 11.63 12.82 14.29 16.13
Price/Book Value per Share 70.52% 74.85% 78.31% 81.63%
Price/Tangible Book Value 70.52% 74.85% 78.31% 81.63%
Market Value/Assets 8.51% 9.88% 11.21% 12.71%
--------------------------------------------------------------------------
</TABLE>
(1) ESOP Borrowings are deducted from net worth and assets, and amortized over
10 years.
(2) MRP Borrowings are omitted from net worth and assets, and amortized over
5 years.
(3) Consists of ESOP and MRP amortization.
(4) The ESOP loan is from the Holding Company and therefore, there are no costs.
(5) Not applicable.
(6) Not applicable.
(7) ESOP and MRP are amortized over 10 and 5 years respectively, and tax
impacted at 37%.
(8) All EPS computations are done in accordance with SOP 93-6.
(9) Not applicable.
Page 6
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Expense Calculations
- ---------------------------------------
Total Shares Offered 353 415 477 549
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 3,528 $ 4,150 $ 4,773 $ 5,488
Estimated Insider Purchases - - - -
ESOP Purchases (282) (332) (382) (439)
--------------------------------------------------------------------
Proceeds to Base Fee On $ 3,246 $ 3,818 $ 4,391 $ 5,049
Underwriters Percentage 0.00% 0.00% 0.00% 0.00%
--------------------------------------------------------------------
Underwriters Fee $ - $ - $ - $ -
Advisory Fee - - - -
--------------------------------------------------------------------
Total Underwriters Fee - - - -
All Other Expenses 330 330 330 330
--------------------------------------------------------------------
Total Expense $ 330 $ 330 $ 330 $ 330
- ---------------------------------------
Shares Calculations
- ---------------------------------------
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment (1) 0 0 0 0
Plus: New SOP 93-6 ESOP Shares (2) 1 2 2 2
Plus: Old SOP 93-6 ESOP Shares (2) 0 0 0 0
- - - -
Shares for all EPS Calculations 326 384 441 507
</TABLE>
<TABLE>
<CAPTION>
Post Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Exchanged 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Shares Issued to Foundation - - - -
Total Shares 352,750 415,000 477,250 548,838
Exchange Shares - - - -
Conversion Shares 352,750 415,000 477,250 548,838
Implied Exhange Ratio - - - -
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
--------------------------------------------------------------------
</TABLE>
Page 7
<PAGE>
Exhibit 11 Stub Period - No Foundation
<TABLE>
<CAPTION>
- ---------------------------------------
MRP Dilution
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment 0 0 0 0
Plus: New MRP issued (1) 14 17 19 22
Plus: New SOP 93-6 ESOP Shares (2) 1 2 2 2
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 340 401 460 529
EPS $ 0.43 $ 0.38 $ 0.35 $ 0.32
BV/Share $13.63 $12.85 $12.28 $11.78
Voting Dilution 4.33% 4.32% 4.33% 4.34%
- -------------------------------------------------------------------------------------------------------------------
- ---------------------------------------
Option Dilution
- -------------------------------------------------------------------------------------------------------------------
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment 0 0 0 0
Plus: Options (1) 35 42 48 55
Plus: New SOP 93-6 ESOP Shares (2) 1 2 2 2
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 361 426 489 562
EPS $ 0.40 $ 0.35 $ 0.32 $ 0.29
BV/Share $13.79 $13.06 $12.52 $12.05
Voting Dilution 10.83% 10.81% 10.82% 10.83%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 8
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Peoples Savings Bank
Pro-Forma Analysis Sheet - Twelve Months Ended
September 30, 1997
Includes SOP 93-6
-------------------------------------------------------------------------------------
Bank Comparables State National
-------------------------------------------------------------------------------------
Mean Median Mean Median Mean Median
---- ------ ---- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Min 12.82
Price-Earnings Ratio P/E Mid 14.49 37.51 28.47 20.98 18.64 23.33 19.93
Max 15.87
Smax 17.86
Min 72.52%
Price-to-Book Ratio P/B Mid 76.75% 109.97% 109.29% 177.76% 164.97% 171.31% 154.11%
Max 80.06%
Smax 83.33%
Min 72.52%
Price-to-Tangible Book Ratio P/TB Mid 76.75% 110.59% 110.69% 183.84% 166.50% 178.18% 157.39%
Max 80.06%
Smax 83.33%
Min 8.73%
Price-to-Assets Ratio P/A Mid 10.14% 25.36% 23.11% 18.42% 16.83% 20.51% 18.69%
Max 11.50%
Smax 13.03%
</TABLE>
Page 1
<PAGE>
Exhibit 12 Offering Circular - No Foundation
Valuation Parameters
- --------------------
- --------------------------------------------------------------------------------
Prior Twelve Mos. Earning Base Y
Period Ended September 30, 1997 $ 192 (1)
- --------------------------------------------------------------------------------
Pre-Conversion Book Value B
As of September 30, 1997 $ 2,088
- --------------------------------------------------------------------------------
Pre-Conversion Assets A
As of September 30, 1997 $37,619
- --------------------------------------------------------------------------------
Return on Money R 3.41%(2)
- --------------------------------------------------------------------------------
Conversion Expenses $ 330
X 7.95%(3)
- --------------------------------------------------------------------------------
Proceeds Not Invested $ 498 (4)
- --------------------------------------------------------------------------------
Estimated ESOP Borrowings $ 332
ESOP Purchases E 8.00%(5)
Cost of ESOP Borrowings $ 33 (5)
Cost of ESOP Borrowings S 0.00%(5)
Amort of ESOP Borrowings T 10 Years
- --------------------------------------------------------------------------------
Amort of MRP Amount N 5 Years
Estimated MRP Amount $ 166 (6)
MRP Purchases M 4.00%
MRP Expense $ 33
- --------------------------------------------------------------------------------
Foundation Amount $ - (7)
Foundation Amount F 0.00% 0.00%
Foundation Opportunity Cost $ -
Tax Benefit Z $ - (8)
- --------------------------------------------------------------------------------
Tax Rate TAX 37.00%
- --------------------------------------------------------------------------------
Percentage Sold PCT 100.00%
- --------------------------------------------------------------------------------
Amount to be issued to Public $ 4,150 (9)
- --------------------------------------------------------------------------------
Earnings Multiple (1 if stub period, 0 if full twelve months) 12 0
- --------------------------------------------------------------------------------
(1) Net income for the twelve months ended September 30, 1997.
(2) Net Return assumes a reinvestment rate of 5.41 percent (the 1 year Treasury
at March 31, 1998), and a tax rate of 37%.
(3) Conversion expenses reflect estimated expenses as presented in the offering
document.
(4) Includes Stock from ESOP and MRP.
(5) Assumes ESOP is amortized straight line over 10 years.
(6) Assumes MRP is amortized straight line over 5 years.
(7) Not applicable.
(8) Not Applicable.
(9) The amount to be offered to public.
Page 2
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Pro Forma Calculation
Calculation of Estimated Value (V) at Midpoint Value
<S> <C> <C> <C>
3. V= P/E*Y = $4,150,000
-----
1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N)
2. V= P/B*(B+Z) = $4,150,000
---------
1-P/B*PCT*(1-X-E-M-F)
1. V= P/A*A = $4,150,000
-----
1-P/A*PCT*(1-X-E-M-F)
The appraisal was performed on a market basis and did not utilize the above formulas.
</TABLE>
<TABLE>
<CAPTION>
Total Shares Price Total
Conclusion Shares Per Share Value
- ---------- ------ --------- -----
<S> <C> <C> <C>
Appraised Value - Midpoint 415,000 $ 10 $ 4,150,000
Range:
- Minimum 352,750 $ 10 3,527,500
- Maximum 477,250 10 4,772,500
- Super Maximum 548,838 10 5,488,380
</TABLE>
<TABLE>
<CAPTION>
Pre Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum *
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Shares 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Full Conversion Value $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Shares 0 0 0 0
Exchange Percent 0.00% 0.00% 0.00% 0.00%
Conversion Shares 352,750 415,000 477,250 548,838
Conversion Percent 100.00% 100.00% 100.00% 100.00%
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
Exchange Ratio 0.0000 0.0000 0.0000 0.0000
--------------------------------------------------------------------
</TABLE>
* SuperMaximum is an overallotment option that is 15% above the maximum amount.
Page 3
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of September 30, 1997
(Dollars in Thousands)
- --------------------------------------- --------------------------------------------------------------------
Conversion Proceeds Minimum Midpoint Maximum SuperMax
- --------------------------------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Shares Offered 352,750 415,000 477,250 548,838
Conversion Shares Offered 352,750 415,000 477,250 548,838
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 3,528 $ 4,150 $ 4,773 $ 5,488
Plus: Value issued to Foundation (9) - - - -
--------------------------------------------------------------------
Pro Forma Market Capitalization 3,528 4,150 4,773 5,488
====================================================================
Gross Proceeds 3,528 4,150 4,773 5,488
Less: Est. Conversion Expenses 330 330 330 330
====================================================================
Net Proceeds $ 3,198 $ 3,820 $ 4,443 $ 5,158
====================================================================
- ---------------------------------------
Estimated Income from Proceeds
- ---------------------------------------
Net Conversion Proceeds $ 3,198 $ 3,820 $ 4,443 $ 5,158
Less: ESOP Adjustment (3) 282 332 382 439
Less: MRP Adjustment (3) 141 166 191 220
--------------------------------------------------------------------
Net Proceeds Reinvested $ 2,775 $ 3,322 $ 3,870 $ 4,499
Estimated Incremental Rate of Return 3.41% 3.41% 3.41% 3.41%
--------------------------------------------------------------------
Estimated Incremental Return $ 95 $ 113 $ 132 $ 153
Less: Cost of ESOP (4) - - - -
Less: Amortization of ESOP (7) 18 21 24 28
Less: MRP Adjustment (7) 18 21 24 28
--------------------------------------------------------------------
Pro-forma Net Income 59 71 84 97
Earnings Before Conversion 192 192 192 192
--------------------------------------------------------------------
Earnings Excluding Adjustment 251 263 276 289
Earnings Adjustment (6) - - - -
--------------------------------------------------------------------
Earnings After Conversion $ 251 $ 263 $ 276 $ 289
--------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of September 30, 1997
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
- ---------------------------------------
Pro-forma Net Worth
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Net Worth at September 30, 1997 $ 2,088 $ 2,088 $ 2,088 $ 2,088
Net Conversion Proceeds 3,198 3,820 4,443 5,158
Plus: MHC Adjustment (7) - - - -
Plus: After tax Foundation Contribution - - - -
Less: ESOP Adjustment (1) (282) (332) (382) (439)
Less: MRP Adjustment (2) (141) (166) (191) (220)
--------------------------------------------------------------------
Pro-forma Net Worth $ 4,863 $ 5,410 $ 5,958 $ 6,587
- ---------------------------------------
Pro-forma Tangible Net Worth
- ---------------------------------------
Pro-forma Net Worth $ 4,863 $ 5,410 $ 5,958 $ 6,587
Less: Intangible (5) - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth $ 4,863 $ 5,410 $ 5,958 $ 6,587
- ---------------------------------------
Pro-forma Assets
- ---------------------------------------
Total Assets at September 30, 1997 $37,619 $37,619 $37,619 $37,619
Net Conversion Proceeds 3,198 3,820 4,443 5,158
Plus: MHC Adjustment (7) - - - -
Plus: Tax Benefit of Foundation - - - -
Less: ESOP Adjustment (1) (282) (332) (382) (439)
Less: MRP Adjustment (2) (141) (166) (191) (220)
--------------------------------------------------------------------
Pro-forma Assets Excluding Adjustment 40,394 40,941 41,489 42,118
Plus: Adjustment (6) - - - -
--------------------------------------------------------------------
Pro-forma Total Assets $40,394 $40,941 $41,489 $42,118
--------------------------------------------------------------------
- ---------------------------------------
Stockholder's Equity Per Share
- ---------------------------------------
Net Worth at September 30, 1997 $ 5.92 $ 5.03 $ 4.38 $ 3.80
Estimated Net Proceeds 9.07 9.20 9.31 9.40
Plus: MHC Adjustment - - - -
Plus: Foundation Contribution - - - -
Less: ESOP Stock (0.80) (0.80) (0.80) (0.80)
Less: MRP Stock (0.40) (0.40) (0.40) (0.40)
--------------------------------------------------------------------
Pro-forma Net Worth Per Share 13.79 13.03 12.49 12.00
Less: Intangible - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth Per Share $ 13.79 $ 13.03 $ 12.49 $ 12.00
--------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of September 30, 1997
(Dollars in Thousands)
------------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------
Net Earnings Per Share
- ---------------------------------------
Historical Earnings Per Share (8) $ 0.59 $ 0.50 $ 0.43 $ 0.38
Incremental return Per Share (8) 0.29 0.29 0.30 0.30
ESOP Adjustment Per Share (8) (0.05) (0.05) (0.05) (0.06)
MRP Adjustment Per Share (8) (0.05) (0.05) (0.05) (0.06)
Normalizing Adjustment Per Share - - - -
------------------------------------------------------------------------
Proforma Earnings Per Share (8) $ 0.78 $ 0.69 $ 0.63 $ 0.56
- ---------------------------------------
Shares Utilized
- ---------------------------------------
Shares Utilized 328 385 443 509
- ---------------------------------------
Pro-forma Ratios
- ---------------------------------------
Price/EPS without Adjustment 12.82 14.49 15.87 17.86
Price/EPS with Adjustment 12.82 14.49 15.87 17.86
Price/Book Value per Share 72.52% 76.75% 80.06% 83.33%
Price/Tangible Book Value 72.52% 76.75% 80.06% 83.33%
Market Value/Assets 8.73% 10.14% 11.50% 13.03%
------------------------------------------------------------------------
</TABLE>
(1) ESOP Borrowings are deducted from net worth and assets, and amortized over
10 years.
(2) MRP Borrowings are omitted from net worth and assets, and amortized over 5
years.
(3) Consists of ESOP and MRP amortization.
(4) The ESOP loan is from the Holding Company and therefore, there are no costs.
(5) Not applicable.
(6) Not applicable.
(7) ESOP and MRP are amortized over 10 and 5 years respectively, and tax
impacted at 37%.
(8) All EPS computations are done in accordance with SOP 93-6.
(9) Not applicable.
Page 6
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------
Expense Calculations
- ---------------------------------------
Total Shares Offered 353 415 477 549
Price Per Share $ 10 $ 10 $ 10 $ 10
-----------------------------------------
Gross Proceeds $ 3,528 $ 4,150 $ 4,773 $ 5,488
Estimated Insider Purchases - - - -
ESOP Purchases (282) (332) (382) (439)
-----------------------------------------
Proceeds to Base Fee On $ 3,246 $ 3,818 $ 4,391 $ 5,049
Underwriters Percentage 0.00% 0.00% 0.00% 0.00%
-----------------------------------------
Underwriters Fee $ - $ - $ - $ -
Advisory Fee - - - -
-----------------------------------------
Total Underwriters Fee - - - -
All Other Expenses 330 330 330 330
-----------------------------------------
Total Expense $ 330 $ 330 $ 330 $ 330
- ---------------------------------------
Shares Calculations
- ---------------------------------------
Shares Outstanding 353 415 477 549 $ 0.71 $ 0.63 $ 0.58 $ 0.53
Less: New ESOP Adjustment 28 33 38 44 28220 33200 38180 43907.04
Less: Old ESOP Adjustment (1) 0 0 0 0
Plus: New SOP 93-6 ESOP Shares (2) 3 3 4 4 2822 3320 3818 4390.704
Plus: Old SOP 93-6 ESOP Shares (2) 0 0 0 0
Shares for all EPS Calculations 328 385 443 509 327,352 385,120 442,888 509,322
</TABLE>
<TABLE>
<CAPTION>
Post Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Exchanged 352,750 415,000 477,250 548,838
Price per Share $ 10 $ 10 $ 10 $ 10
Shares Issued to Foundation - - - -
Total Shares 352,750 415,000 477,250 548,838
Exchange Shares - - - -
Conversion Shares 352,750 415,000 477,250 548,838
Implied Exhange Ratio - - - -
Gross Proceeds $ 3,527,500 $ 4,150,000 $ 4,772,500 $ 5,488,380
Exchange Value $ - $ - $ - $ -
--------------------------------------------------------------------
</TABLE>
Page 7
<PAGE>
Exhibit 12 Offering Circular - No Foundation
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------
MRP Dilution
- --------------------------------------------------------------------------------------------
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment 0 0 0 0
Plus: New MRP issued (1) 14 17 19 22
Plus: New SOP 93-6 ESOP Shares (2) 3 3 4 4
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 342 402 462 531
EPS $ 0.75 $ 0.67 $ 0.61 $ 0.56
BV/Share $13.26 $12.53 $12.00 $11.54
Voting Dilution 4.30% 4.31% 4.31% 4.32%
- --------------------------------------------------------------------------------------------
- ---------------------------------------
Option Dilution
- --------------------------------------------------------------------------------------------
Shares Outstanding 353 415 477 549
Less: New ESOP Adjustment 28 33 38 44
Less: Old ESOP Adjustment 0 0 0 0
Plus: Options (1) 35 42 48 55
Plus: New SOP 93-6 ESOP Shares (2) 3 3 4 4
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 363 427 491 564 362627 426620 490613
EPS $0.69 $ 0.62 $ 0.56 $ 0.51
BV/Share $13.44 $12.76 $12.26 $11.82
Voting Dilution 10.76% 10.78% 10.77% 10.79%
- --------------------------------------------------------------------------------------------
</TABLE>
Page 8
