As filed with the Securities and Exchange Commission on May 6, 1998
Registration No. 333-48655
- --------------------------------------------------------------------------------
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
------------------------
Carnegie Financial Corporation
- --------------------------------------------------------------------------------
(Exact name of Small Business Issuer as specified in charter)
Pennsylvania 6035 Requested
- ---------------------------- ----------------- -------------------
(State or other jurisdiction (Primary SIC No.) (I.R.S. Employer
of incorporation or Identification No.)
organization)
17 West Mall Plaza, Carnegie, Pennsylvania 15106
(412) 276-1266
- --------------------------------------------------------------------------------
(Address, including zip code, and telephone number, including area code,
of principal executive offices and principal place of business)
Ms. Shirley Chiesa
President and Chief Executive Officer
Carnegie Financial Corporation
17 West Mall Plaza, Carnegie, Pennsylvania 15106
(412) 276-1266
---------------------------------------------------------
(Name, address and telephone number of agent for service)
Please send copies of all communications to:
Samuel J. Malizia, Esq.
Charles E. Sloane, Esq.
Andrew S. White, 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.
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier registration statement for the
same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [ ]
<PAGE>
PROSPECTUS
Up to 238,050 Shares of Common Stock
(Anticipated Maximum, as adjusted)
CARNEGIE FINANCIAL CORPORATION
17 West Mall Plaza
Carnegie, Pennsylvania 15106
================================================================================
Carnegie Savings Bank is converting from the mutual form to the stock
form of organization. As part of the conversion, Carnegie Savings Bank will
become a wholly owned subsidiary of Carnegie Financial Corporation. Carnegie
Financial Corporation was formed in February 1998 and upon consummation of the
conversion will own all of the shares of Carnegie Savings Bank. The common stock
of Carnegie Financial Corporation is being offered to the public in accordance
with a plan of conversion. The Office of Thrift Supervision has approved the
plan of conversion subject to the approval of a majority of the votes eligible
to be cast by members of Carnegie Savings Bank. No common stock will be sold if
Carnegie Savings Bank does not receive these approvals or Carnegie Financial
Corporation 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 Carnegie Savings Bank to be between $1,530,000 and $2,070,000, which
establishes the number of shares to be offered. Subject to Office of Thrift
Supervision approval, an additional 15% above the maximum number of shares, or
up to 238,050 shares may be offered. Based on these estimates, we are making the
following offering of shares of common stock:
<TABLE>
<CAPTION>
<S> <C> <C>
o Price Per Share: $10.00
o Number of Shares
Minimum/Maximum/Maximum, as adjusted: 153,000 to 207,000 to 238,050
o Underwriting Commissions and Other Expenses
Minimum/Maximum/Maximum, as adjusted: $260,000
o Net Proceeds to Carnegie Financial Corporation
Minimum/Maximum/Maximum, as adjusted: $1,270,000 to $1,810,000 to $2,120,500
o Net Proceeds Per Share
Minimum/Maximum/Maximum, as adjusted: $8.30 to $8.74 to $8.91
</TABLE>
Please refer to Risk Factors beginning on page 1 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 government agency.
Neither the Securities and Exchange Commission, 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
Center at (412) 276-0535.
Capital Resources, Inc.
The date of this prospectus is ___________, 1998
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Page
----
Questions and Answers About the Stock Offering..............................(i)
Summary....................................................................iii)
Selected Financial and Other Data..........................................(vi)
Risk Factors..................................................................1
Proposed Purchases by Directors and Officers..................................
Use of Proceeds...............................................................
Dividends.....................................................................
Market for the Common Stock...................................................
Capitalization................................................................
Pro Forma Data................................................................
Historical and Pro Forma Capital Compliance..................................
The Conversion...............................................................
Statement of Operations of Carnegie Savings Bank.............................
Management's Discussion and Analysis of
Financial Condition and Results of Operations..............................
Business of Carnegie Financial Corporation...................................
Business of Carnegie Savings Bank............................................
Regulation...................................................................
Taxation.....................................................................
Management of Carnegie Financial Corporation.................................
Management of Carnegie Savings Bank..........................................
Restrictions on Acquisitions of Carnegie Financial Corporation...............
Description of Capital Stock.................................................
Legal and Tax Matters........................................................
Experts......................................................................
Registration Requirements....................................................
Where You Can Find Additional Information....................................
Index to Financial Statements of Carnegie Savings Bank..................... F-1
This document contains forward-looking statements which involve risks
and uncertainties. Carnegie Financial Corporation'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 1 of this document.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
QUESTIONS AND ANSWERS ABOUT THE STOCK OFFERING
Q: What is the purpose of the offering?
A: The offering gives you the opportunity to become a stockholder of our
newly formed holding company, Carnegie Financial Corporation, which
will allow you to 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. As a stock savings institution
operating through a holding company structure, we will have greater
flexibility for operations, expansion and diversification.
Q: How do I purchase the stock?
A: You must complete and return the stock order form to us together with
your payment, on or before 12:00 p.m. (noon), Eastern Time, __________,
__________, 1998.
Q: How much stock may I purchase?
A: The minimum purchase is 25 shares (or $250). The maximum purchase is
5,000 shares (or $50,000), for any individual person or persons
ordering through a single account. No person, related person or persons
acting together, may purchase in the conversion more than 7,500 shares
(or $75,000). We may decrease or increase the maximum purchase
limitation without notifying you. In the event that the offering is
oversubscribed, we will allocate shares based upon your purchase
priority.
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 offered on the following priority basis:
o Persons who had a deposit account of at least $50 with us on
November 30, 1996 ("Eligible Account Holders").
o Any remaining shares will be offered to the employee stock
ownership plan of Carnegie Savings Bank ("ESOP").
o Any remaining shares will be offered to persons who had a
deposit account of at least $50 with us on March 31, 1998
("Supplemental Eligible Account Holders").
o Any remaining shares will be offered to other persons entitled
to vote on the approval of the conversion ("Other Members").
If the above persons do not subscribe for all of the shares, the remaining
shares may be offered either directly by Carnegie Financial Corporation in a
community offering or in a best efforts public offering. We have the right to
reject any stock order in the community offering. In the event of a community
offering, preference will be given to natural persons residing in Allegheny
County. You are prohibited from transferring or entering into any understanding
to transfer your subscription rights.
- --------------------------------------------------------------------------------
(i)
<PAGE>
- --------------------------------------------------------------------------------
Q: As a depositor of Carnegie Savings Bank, am I obligated to purchase
stock?
A: No. You are not required to purchase stock.
Q: As a depositor of or borrower from Carnegie Savings Bank, what will
happen if I do not purchase any stock?
A: As a depositor, you presently have voting rights while we are in the
mutual form; however, once we convert, voting rights will be held
exclusively by stockholders. Your deposit account, certificate accounts
and any loans you may have with us will not be affected.
Q. Will the stock be traded on a market?
A. It is anticipated that the stock will be traded on the OTC Bulletin
Board. However it is not assured or guaranteed that the stock will be
traded on the OTC Bulletin Board or on any market.
Q: What particular factors should I consider when deciding whether to buy
the stock?
A: Before you decide to purchase shares, you should read the Risk Factors
section on pages 1-3 of this document.
Q: Who can help answer any other questions I may have about the stock
offering?
A: In order to make an informed investment decision, you should read this
entire document. In addition, you may contact:
Stock Center
Carnegie Financial Corporation
17 West Mall Plaza
Carnegie, Pennsylvania 15106
(412) 276-0535
- --------------------------------------------------------------------------------
(ii)
<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 carefully this entire document, including
the financial statements and the notes to the financial statements of Carnegie
Savings Bank. References in this document to "we", "us", and "our" refer to
Carnegie Savings Bank. In certain instances where appropriate, "we", "us" or
"our" refers collectively to Carnegie Financial Corporation and Carnegie Savings
Bank. References in this document to "CFC" refers to Carnegie Financial
Corporation.
The Companies
Carnegie Financial Corporation
17 West Mall Plaza
Carnegie, Pennsylvania 15106
(412) 276-1266
Carnegie Financial Corporation is not an operating company and has not
engaged in any significant business to date. It was formed in February 1998 as a
Pennsylvania-chartered corporation to be the holding company for Carnegie
Savings Bank. The holding company structure will provide greater flexibility in
terms of operations, expansion and diversification. See page ____.
Carnegie Savings Bank
17 West Mall Plaza
Carnegie, Pennsylvania 15106
(412) 276-1266
Carnegie Savings Bank began operations in 1915 under the name,
"Carnegie Savings Building and Loan." In 1995, we converted to a state savings
bank charter and obtained Federal Deposit Insurance Corporation ("FDIC")
insurance through the Bank Insurance Fund ("BIF"). In __________ ___, 1998, we
converted to a federal mutual savings bank charter, became subject to regulation
by the Office of Thrift Supervision ("OTS") and retained our FDIC insurance
through BIF. We are a community and customer oriented federal mutual savings
bank. 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 December 31, 1997,
we had total assets of $16.7 million, deposits of $15.2 million, and total
retained earnings of $1.2 million. See pages ____ to ____.
The Stock Offering
Carnegie Financial Corporation is offering between 153,000 and 207,000
shares of common stock at $10 per share ("Purchase Price"). As a result of
changes in market and financial conditions prior to completion of the conversion
or to fill the order of our employee stock ownership plan and subject to the
Office of Thrift Supervision approval, we may increase the offering to 238,050
shares without further notice to you. If an increase in the offering size is
approved, you will not have the opportunity to change or cancel any stock order
previously delivered to us. See page ____.
- --------------------------------------------------------------------------------
(iii)
<PAGE>
- --------------------------------------------------------------------------------
Stock Purchase Priorities
The shares of common stock will be offered on the basis of purchase
priorities. Certain depositors will receive subscription rights to purchase the
shares. The shares will be offered first in a subscription offering and any
remaining shares may be offered in a community offering or a public offering. We
have engaged Capital Resources, Inc. to assist in the selling of common stock on
a best-efforts basis. See pages ____ to ____.
Subscription Rights
You may not sell or assign your subscription rights. Any transfer of
subscription rights is prohibited by law. See page ____.
The Offering Range and Determination of the Price Per Share
The offering range is based on an independent appraisal of the
estimated pro forma market value of the common stock by FinPro, Inc., an
appraisal firm experienced in appraisals of savings institutions. FinPro has
estimated, that in its opinion as of March 12, 1998 the aggregate estimated pro
forma market value of the common stock ranged between $1,530,000 and $2,070,000
with a midpoint of $1,800,000 (the "EVR"). The estimated pro forma market value
of the shares is our estimated market value after giving effect to the sale of
shares in this offering.
The appraisal was based in part upon our financial condition and
operations and the effect of the additional capital raised by the sale of common
stock in this offering. The $10.00 price per share
was determined by our board of directors and is the price most commonly used in
stock offerings involving conversions of mutual savings institutions. The
independent appraisal will be updated prior to the consummation of the
conversion. If the updated estimated pro forma market value of the common stock
is either below $1,530,000 or above $2,380,500, 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 p.m. (noon), Eastern
Time, on __________ ___, 1998. The community offering or public offering, if
any, may terminate at any time without notice but no later than 45 days after
completion of the subscription offering, without approval by the OTS. See page
____.
Benefits to Management from the Offering
Our full-time employees will participate in the offering through
individual purchases and purchases of stock by our employee stock ownership
plan, which is a form of retirement plan. We also intend to implement a
restricted stock plan and a stock option plan, no earlier than six months
following completion of the conversion, which may benefit our President and
other officers and directors. However, 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. If we adopt the
restricted stock plan, our executive officers and directors will be awarded
common stock at no cost to them. See pages ____ to ____.
- --------------------------------------------------------------------------------
(iv)
<PAGE>
- --------------------------------------------------------------------------------
Use of the Proceeds Raised from the Sale of Common Stock
Carnegie Financial Corporation will use a portion of the net proceeds
from the stock offering to purchase all the common stock to be issued by us in
the conversion and to make a loan to our employee stock ownership plan to fund
its purchase of stock in the conversion. After payment for our common stock,
Carnegie Financial Corporation will retain up to 50% of the funds received in
the stock offering as its initial capitalization. We will use the proceeds of
the sale of the common stock to make investments and fund loans. See page ____
for the range of offering proceeds.
Dividends
CFC does not expect to pay dividends during the first year following
the conversion. We may establish a dividend policy after the first year. See
page ____.
Market for the Common Stock
Due to the small size of the offering, it is unlikely that an active
and liquid trading market will develop and 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.
Following the completion of the offering, it is anticipated that the CFC common
stock will be traded on the OTC Bulletin Board. Capital Resources, Inc. is
expected to make a market in the common stock. However, Capital Resources, Inc.
will not be subject to any obligation with respect to such efforts. See page
____.
Important Risks in Owning Common Stock
Before you decide to purchase stock in the offering, you should read
the Risk Factors section on pages 1-^ 3 of this document.
- --------------------------------------------------------------------------------
(v)
<PAGE>
- --------------------------------------------------------------------------------
SELECTED FINANCIAL AND OTHER DATA
The following financial information is a summary only. This information
is derived in part, and should be read in conjunction with, our audited
financial statements and notes beginning on page F-1.
Selected Financial Condition and Other Data
<TABLE>
<CAPTION>
At December 31,
-----------------------------------------------------------
1997 1996 1995
------------------ ----------------- ------------------
(Dollars in thousands)
<S> <C> <C> <C>
Total Amount of:
Assets.................................... $16,723 $15,100 $13,733
Loans receivable, net..................... 9,585 9,812 9,002
Mortgage-backed securities, net 2,628 2,014 980
Investment securities, net................ 2,530 2,150 1,687
Cash and cash equivalents................. 851 557 1,542
Savings deposits.......................... 15,178 13,378 12,407
Other borrowings.......................... - 300 -
Retained earnings
(substantially restricted(1))........... ^1,156 ^1,210 1,111
Number of:
Deposit accounts.......................... 2,309 2,221 2,080
Full service offices...................... 1 1 1
</TABLE>
(1) Composed of appropriated and unappropriated retained income.
- --------------------------------------------------------------------------------
(vi)
<PAGE>
- --------------------------------------------------------------------------------
Summary of Operations
<TABLE>
<CAPTION>
For the Years Ended
December 31,
---------------------------------------------------------
1997 1996 1995
----------------- ---------------
(In thousands)
<S> <C> <C> <C>
Interest income................................... $1,222 $1,074 $1,019
Interest expense.................................. 671 552 536
----- ----- -----
Net interest income............................... 551 522 483
Provision for loan losses......................... 73 2 31
----- ----- -----
Net interest income after
provision for loan losses....................... 478 520 452
Other income...................................... 63 74 73
Other expense..................................... 649 459 425
----- ----- ----
Income (loss) before income taxes................. (108) 135 100
Income tax expense (benefit)...................... (54) 36 14
----- ----- ----
Net income (loss)................................. $ (54) $ 99 $ 86
===== ===== =====
</TABLE>
Key Operating Ratios
<TABLE>
<CAPTION>
At or For the
Years Ended
December 31,
----------------------------------------------------
1997 1996 1995
----------------- ------------- --------------
<S> <C> <C> <C>
Performance Ratios:
Return on average assets
(net income (loss) divided by average total (0.33)% 0.70% 0.65%
assets).............................................
Return on average equity
(net income (loss) divided by average equity)...... (4.30)% 8.60% 8.21%
Ratio of average equity to average assets
ratio (average equity divided by average
total assets)...................................... 7.73% 8.09% 7.95%
Equity to assets at period end....................... 7.00% 7.92% 8.08%
Interest rate spread................................. 3.11% ^ 3.48% 3.62%
Net interest margin.................................. 3.50% ^ 3.82% 3.88%
Average interest-earning assets to average
interest-bearing liabilities....................... 109.28% 108.47% 106.07%
Net interest income after provision for loan
losses to total noninterest expense.................. 73.65% 113.29% 106.35%
Asset Quality Ratios:
Non-performing loans to total assets................. 0.25% 0.22% 0.53%
Non-performing assets to total assets................ 3.12% 1.32% 1 .75%
Non-performing loans to total loans.................. 0.44% 0.34% 0.81%
Allowance for loan losses to total loans
at end of period................................... ^ 1.20% 0.40% 0.42%
Allowance for loan losses to non-performing
loans.............................................. 273.81% 118.18% 52.05%
</TABLE>
- --------------------------------------------------------------------------------
(vii)
<PAGE>
- --------------------------------------------------------------------------------
RECENT DEVELOPMENTS
Selected Financial Condition and Other Data
Set forth below are the summaries of our historical financial and other
data. Financial data as of March 31, 1998 and for the three months ended March
31, 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 summary of operations and other data for the three
months ended March 31, 1998 are not necessarily indicative of the results of
operations for the fiscal year ending December 31, 1998.
<TABLE>
<CAPTION>
At At
March 31, December 31,
1998 1997
------------------ ----------------
(Dollars in thousands)
<S> <C> <C>
Total Amount of:
Assets.................................... $16,615 $16,723
Loans receivable, net..................... 10,543 9,585
Mortgage-backed securities, net 2,548 2,628
Investment securities, net................ 1,822 2,530
Cash and cash equivalents................. 741 851
Savings deposits.......................... 15,029 15,178
Retained earnings
(substantially restricted(1))........... 1,171 1,170
Number of:
Deposit accounts.......................... 2,346 2,309
Full service offices...................... 1 1
</TABLE>
(1) Composed of appropriated and unappropriated retained income.
- --------------------------------------------------------------------------------
(viii)
<PAGE>
- --------------------------------------------------------------------------------
Summary of Operations
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
-------------------------------
1998 1997
----------- --------
(In thousands)
<S> <C> <C>
Interest income................................... $ 298 $ 280
Interest expense................................. 170 158
----- -----
Net interest income............................... 128 122
Provision for loan losses......................... - -
----- -----
Net interest income after
provision for loan losses....................... 128 122
Other income...................................... 13 7
Other expense..................................... 141 129
----- -----
Income (loss) before income taxes................. - -
Income tax expense (benefit)...................... - -
----- -----
Net income (loss)................................. $ - $ -
===== =====
</TABLE>
Key Operating Ratios
<TABLE>
<CAPTION>
At or For the
Three Months Ended
March 31,
----------------------------
1998 1997
--------- --------
<S> <C> <C>
Performance Ratios:
Return on average assets
(net income (loss) divided by average total - % - %
assets).............................................
Return on average equity
(net income (loss) divided by average equity)...... - % - %
Ratio of average equity to average assets
ratio (average equity divided by average
total assets)...................................... 7.26% 8.02%
Equity to assets at period end....................... 7.05% 7.51%
Interest rate spread................................. 2.96% 2.91%
Net interest margin.................................. 3.29% 3.23%
Average interest-earning assets to average
interest-bearing liabilities....................... 107.69% 107.61%
Net interest income after provision for loan
losses to total noninterest expense.................. 90.78% 94.57%
Asset Quality Ratios:
Non-performing loans to total assets................. .25% .41%
Non-performing assets to total assets................ 3.12% 1.46%
Non-performing loans to total loans................. .40% .70%
Allowance for loan losses to total loans
at end of period................................... .92% .39%
Allowance for loan losses to non-performing
loans.............................................. 233.33% 56.06%
</TABLE>
- --------------------------------------------------------------------------------
(ix)
<PAGE>
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RECENT DEVELOPMENTS
Financial Condition
Total assets remained relatively constant at March 31, 1998 as compared
to December 31, 1997. Net loans receivable increased approximately $958,000 to
$10.5 million at March 31, 1998 from $9.6 million at December 31, 1997. Such
increase was offset by a $703,000 decrease in net investment securities. The
funds received from net investment securities were used to fund the increase in
net loans receivable. All other assets and liabilities remained relatively
constant for the March 31, 1998 period.
Real estate owned decreased $3,000 to $519,000 at March 31, 1998 from
$522,000 at December 31, 1997. Total non-accrual and accrual loans were
unchanged at March 31, 1998 as compared to December 31, 1997.
Results of Operations
Net income for the three months ended March 31, 1998 remained unchanged
as compared to the same period in 1997. The $6,000 increase in net interest
income for the three months ended March 31, 1998 was primarily the result of a
$142,000 increase in net earning assets for the period. The average interest
rate spread for the three months ended March 31, 1998 was 2.96% compared to
2.91% for the same period in 1997. The net yield on interest earning assets for
the three months ended March 31, 1998 was 3.29% compared to 3.23% for the same
period in 1997.
Other income increased $6,000 to $13,000 for the three months ended
March 31, 1998 from $7,000 for the comparable period in 1997. In 1997, the
Savings Bank recognized a $7,000 loss on OREO property sold.
Other expenses increased $12,000 to $141,000 for the three months ended
March 31, 1998 from $129,000 for the comparable period in 1997. The increase in
other expenses was primarily the result of a $5,000 increase in compensation and
benefits and a $7,000 increase in general and administrative expenses primarily
due to an increase in the cost of the Savings Bank's service bureau.
Capital Resources
Management monitors risk-based capital and leverage capital ratios in
order to assess compliance with regulatory guidelines. At March 31, 1998, the
Savings Bank had tangible capital, leverage and total risk-based capital of
6.98%, 6.98% and 16.04%, which exceeded the OTS's minimum requirement of 1.5%,
3.0%, and 8.00%, respectively.
Subsequent Events
In April 1998, our service bureau advised us that we will be assessed
an aggregate fee of approximately $10,000 for Year 2000 compliance. This fee
will be billed to us on a twelve month basis in addition to our monthly data
processing fee.
- --------------------------------------------------------------------------------
(x)
<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, like that of most financial institutions,
is substantially dependent on our net interest income, which is the difference
between the interest income we earn on our interest-earning assets (e.g. such as
mortgage loans and investment securities) and the interest expense we pay on our
interest-bearing liabilities (such as deposits and borrowings). Substantially
all of our mortgage loans have rates of interest which are fixed for the term of
the loan ("fixed rate") and are originated with terms of up to 30 years, while
deposit accounts have significantly shorter terms to maturity. Because our
interest-earning assets generally have fixed rates of interest and have longer
effective maturities than our interest-bearing liabilities, the yield on our
interest-earning assets generally will adjust more slowly to changes in interest
rates than the cost of our interest-bearing liabilities. As a result, our net
interest income will be adversely affected by material and prolonged increases
in interest rates. In addition, rising interest rates may adversely affect our
earnings because there might be a lack of customer demand for loans. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - - Asset/Liability Management."
Changes in interest rates also can affect the average life of loans and
mortgage-backed securities. Historically, lower interest rates in recent periods
have 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 mortgage-backed securities.
Lack of Active Market for Common Stock
Due to the small size of the offering, it is highly unlikely that an
active trading market will develop and be maintained. If an active market does
not develop, you may not be able to sell your shares promptly or perhaps at all,
or sell your shares at a price equal to or above the price you paid for the
shares. It is anticipated that CFC common stock will be traded on OTC Bulletin
Board. The common stock may not be appropriate as a short-term investment. See
"Market for the Common Stock."
Additional Capital; Return on Equity
As a result of the conversion, we will have, on a consolidated basis,
total equity that is substantially more than our equity prior to the conversion.
Loan demand is not expected to increase correspondingly, and thus we are likely
to be faced with the choice of either investing capital in lower yielding debt
securities or making higher risk investments to increase yield. Furthermore, we
are not expected to be able to immediately leverage the new capital, and
therefore, the increase in equity may adversely affect return on equity (net
income divided by average equity), absent a corresponding increase in net
income. Our return on equity was (4.62)%, 8.28% and 7.74% for the years ended
December 31, 1997, 1996 and 1995 respectively. We initially intend to invest the
net proceeds in short and medium term investments which generally have lower
yields than loans. There can be no assurance that we will be able to increase
net income in future periods in amounts commensurate with the increase in equity
resulting from the conversion. ^ See "Pro Forma Data." Furthermore, current OTS
policy on stock
1
<PAGE>
repurchases by CFC could limit our flexibility in utilizing the net proceeds.
See "Use of Proceeds" and "The Conversion -- Restrictions on Repurchase of
Stock."
Intent to Remain Independent
We have operated as an independent community oriented savings association
since 1915. It is our intention to continue to operate as an independent
community oriented savings association following the conversion. Accordingly,
you are urged not to subscribe for shares of our common stock if you are
anticipating a quick sale by us. See "Business of Carnegie Financial
Corporation."
Dependence on Local Economy
We operate as a community-oriented financial institution, with a focus
on servicing customers in our primary market area of Carnegie and surrounding
areas of Allegheny County, Pennsylvania. At December 31, 1997, most of our loan
portfolio consisted of loans made to borrowers and collateralized by properties
located in our primary market area. As a result of this concentration, a
downturn in the economy of our primary market area could increase the risk of
loss associated with our loan portfolio.
See "Business of Carnegie Savings Bank - Market Area."
Anti-Takeover Provisions and Statutory Provisions That Could Discourage Hostile
Acquisitions of Control
Provisions in CFC's articles of incorporation and bylaws, the general
corporation law of the Commonwealth of Pennsylvania, and certain federal
regulations may make it difficult and expensive to pursue a tender offer, change
in control or takeover attempt which is opposed by our management and the board
of directors. 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 CFC more
difficult. In addition, these provisions may reduce the trading price of our
stock. These provisions include: restrictions on the acquisition of CFC'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 the
meeting of stockholders; denial of cumulative voting by stockholders in the
election of directors; the issuance of preferred stock and additional shares of
common stock without shareholder approval; and super-majority provisions for the
approval of certain business combinations.
See "Restrictions on Acquisitions of Carnegie Financial Corporation".
Possible Voting Control by Directors and Officers
The proposed purchases of the common stock by our directors, officers
and employee stock ownership plan, as well as the potential acquisition of the
common stock through the stock option plan and restricted stock plan, could make
it difficult to obtain majority support for stockholder proposals which are
opposed by our management and board of directors. Based upon the midpoint of the
estimated valuation range, our officers and directors intend to purchase
approximately 17% of the common shares offered in the conversion. In addition,
the voting of those shares could block the approval of transactions (i.e.,
business combinations and amendment to our articles of incorporation and bylaws)
requiring the approval of 80% of the stockholders under the CFC's articles of
incorporation. See "Proposed Purchases by Directors and Officers," "Management
of Carnegie Savings Bank -- Executive Compensation," "Description of Capital
Stock," and "Restrictions on Acquisitions of Carnegie Financial Corporation."
2
<PAGE>
Possible Dilutive Effect of Restricted Stock Plan and Stock Options
If the conversion is completed and shareholders approve the restricted
stock plan ("RSP") and stock option plan, we will issue stock to our officers
and directors through these plans. If the shares for the RSP and stock options
are issued from our authorized but unissued stock, your voting interests could
be cumulatively diluted by up to approximately 12.3% and the trading price of
our stock may be reduced. See "Pro Forma Data," "Management of Carnegie Savings
Bank -- Proposed Future Stock Benefit Plans," and "-- Restricted Stock Plan."
Restrictions on Repurchase of Shares
Generally, during the first year following the conversion, CFC may not
repurchase its shares. During each of the second and third years following the
conversion, CFC may repurchase up to 5% of its outstanding shares. During those
periods, if we decide that additional repurchases would be an appropriate use of
funds, we would not be able to do so, without 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 Program Problems
A great deal of information has been disseminated about the global
computer crash that may occur in the year 2000. Many 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 our operations. Data processing is
also essential to most other financial institutions and many other companies.
Most of our material data processing that could be affected by this
problem is provided by a third party service bureau. Our service bureau has
advised us that it expects to resolve this potential problem before the year
2000. However, if this potential problem is not resolved before the year 2000,
we would likely experience significant data processing delays, mistakes or
failures. These delays, mistakes or failures could have a significant adverse
impact on our financial condition and our results of operations. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Results of Operations - Noninterest Expense."
Financial Institution Regulation and Future of the Thrift Industry
We are subject to extensive regulation, supervision, and examination by
the OTS and FDIC. Bills have been introduced in Congress that could 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 CFC to engage in diversified activities
may be limited, which could adversely affect our value and profitability. See
"Regulation."
3
<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 180,000 shares (the
midpoint of the estimated valuation range, "EVR") 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. However, officers and directors and their
associates may not buy more than 35% of the total amount of shares sold in the
conversion.
<TABLE>
<CAPTION>
Aggregate
Total Price of Percent
Shares Shares of Shares
Name Position Purchased(1) Purchased(1) Purchased(1)
---- -------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shirley Chiesa Chairman, President 7,500 $75,000 4.17%
and CEO
Morry Miller Director 5,000 50,000 2.78
JoAnn V. Narduzzi Director 5,000 50,000 2.78
Lois A. Wholey Director 5,000 50,000 2.78
Charles Ruprecht Director 4,000 40,000 2.22
Joseph R. Pigoni Executive Vice 4,000 40,000 2.22
------- ------- ------
President and CFO
30,500 $305,000 16.95%
======= ======= ======
</TABLE>
- --------------------
(1) Does not include shares purchased by the employee stock ownership plan (the
"ESOP").
USE OF PROCEEDS
Carnegie Financial Corporation will use up to 50% of the net proceeds
from the offering (or such additional amounts as is necessary to increase
Carnegie Savings Bank's capital ratio to 10%) to purchase all of the capital
stock we will issue in connection with the conversion. See footnote 1 to
"Historical and Pro Forma Capital Compliance." A portion of the net proceeds to
be retained by Carnegie Financial Corporation will be loaned to our employee
stock plan to fund its purchase of 8% of the shares sold in the conversion. On a
short-term basis, the balance of the net proceeds retained by Carnegie Financial
Corporation initially will be invested in short-term investments. Although there
are no current plans, the net proceeds subsequently may be used to fund
acquisitions of other financial services institutions or to diversify into
non-banking activities. The net proceeds may also serve as a source of funds for
the payment of dividends to stockholders or for the repurchase of the shares. A
portion of the net proceeds may also be used to fund the purchase of 4% of the
shares for the RSP which is anticipated to be adopted following the conversion.
See "Pro Forma Data."
The funds we receive from the sale of our capital stock to CFC will be
added to our general funds and be used for general corporate purposes including:
(i) investment in mortgages and other loans, (ii) investment in U.S. Government
and federal agency securities, (iii) investment in mortgage-backed securities or
(iv) funding loan commitments. However, initially we intend to invest the net
proceeds in short-term investments until we can deploy the proceeds into higher
yielding assets. The funds added to our capital will further strengthen our
capital position.
The net proceeds may vary because the total expenses of the conversion may
be significantly more or less than those estimated. We estimate our expenses to
be approximately $260,000. Our
4
<PAGE>
estimated net proceeds will range from $1,270,000 to $1,810,000 (or up to
$2,121,000 in the event the maximum of the estimated valuation range is
increased to $2,380,500). See "Pro Forma Data." The net proceeds will also vary
if the number of shares to be issued in the conversion is adjusted to reflect a
change in our estimated pro forma market value. 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 accounts for use in purchasing stock.
DIVIDENDS
Upon conversion, CFC's board of directors will have the authority to
declare dividends on the shares, subject to statutory and regulatory
requirements. CFC does not expect to pay cash dividends during the first year
after the conversion. Any future declarations of dividends by the board of
directors will depend upon a number of factors, including: (i) the amount of the
net proceeds retained by CFC 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 will not pay any dividends that
would be treated for tax purposes as a return of capital nor 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 Savers and Borrowers of Carnegie Savings
Bank -- Liquidation Account" and "Regulation -- Dividend and Other Capital
Distribution Limitations."
CFC 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 us. CFC is subject,
however, to the requirements of Pennsylvania law, which generally limit the
payment of dividends to amounts that will not affect the ability of CFC, after
the dividend has been distributed, to pay its debts in the ordinary course of
business.
MARKET FOR THE COMMON STOCK
As a newly organized company, CFC has never issued capital stock, and
consequently there is no established market for the common stock. Following the
completion of the offering, it is anticipated that the common stock will be
traded on the over-the-counter market with quotations available through the OTC
Electronic Bulletin Board. Capital Resources, Inc. 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. However, Capital
Resources, Inc. will not be subject to any obligation with respect to such
efforts. If the common stock cannot be quoted and 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, it is highly
unlikely that an active trading market will develop and be maintained. You could
have difficulty disposing of your shares and 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.
5
<PAGE>
CAPITALIZATION
The following table presents, as of December 31, 1997, our historical
capitalization and the consolidated capitalization of CFC 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 EVR at a price of $10.00 per share:
<TABLE>
<CAPTION>
Pro Forma Consolidated Capitalization
Based on the Sale of (2)(3)
-----------------------------------------------------------
Historical 153,000 180,000 207,000 238,050
Capitalization Shares at Shares at Shares at Shares At
at December 31, $10.00 $10.00 $10.00 $10.00
1997 Per Share Per Share Per Share Per Share
------ --------- --------- --------- ---------
(In thousands)
<S> <C> <C> <C> <C> <C>
Deposits(1) .................................. $15,178 $15,178 $15,178 $15,178 $15,178
====== ====== ====== ====== ======
Stockholders' Equity:
Preferred Stock, no par value per share,
2,000,000 shares authorized; none to be
issued..................................... $ - $ - $ - $ - $ -
Common Stock, $.10 par value, 4,000,000
shares authorized; total shares to be
issued as reflected........................ - ^ 15 ^ 18 ^ 21 ^ 24
Additional paid in capital.................... - ^ 1,255 ^ 1,522 ^ 1,789 ^ 2,097
Retained earnings(4)........................ 1,156 1,156 1,156 1,156 1,156
Net unrealized gain on securities available for
sale........................................ 14 14 14 14 14
Less:
Common Stock acquired by ESOP............... - (122) (144) (166) (190)
Common Stock acquired by RSP................ - (61) (72) (83) (95)
------ ------ ------ ------ ------
Total stockholders' equity.................... $ 1,170 $ 2,257 $ 2,494 $ 2,731 $ 3,006
====== ====== ====== ====== ======
</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 Stock Option Plan or
RSP. See "Management of Carnegie 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 that the RSP will purchase common
stock 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% or 8% purchase by the RSP or ESOP,
respectively. Assumes that the funds used to acquire the ESOP shares will
be borrowed from CFC 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 of
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' voting interests by
4.31%. There can be no assurance that stockholder approval of the RSP will
be obtained. See "Management of Carnegie Savings Bank -- Proposed Future
Stock Benefit Plans -- Restricted Stock Plan."
(4) Our equity 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 Carnegie Savings Bank -- Liquidation Account"
and Note 13 to the Financial Statements.
6
<PAGE>
PRO FORMA DATA
The actual net proceeds from the sale of the common stock cannot be
determined until the conversion is completed. However, net proceeds are
currently estimated to be between $1,270,000 and $1,810,000 at the minimum and
maximum, as adjusted, of the EVR, based upon the following assumptions: (i) 8%
of the shares will be sold to the ESOP; (ii) Capital Resources, Inc. will have
received advisory and marketing fees (including legal fees and other
reimbursable expenses) of $80,000; (iii) no shares will be sold in a public
offering; (iv) other conversion expenses, excluding the fees and other expenses
paid to Capital Resources, Inc., will be $180,000; and (v) 4% of the shares will
be sold to the RSP. Because management of Carnegie Savings 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 3).
The following table sets forth, our historical net earnings and
stockholders' equity prior to the conversion and the pro forma consolidated net
earnings and stockholders' equity of CFC following the conversion. Unaudited pro
forma consolidated net earnings and stockholders' equity have been calculated
for the year ended December 31, 1997, as if the common stock to be issued in the
conversion had been sold at January 1, 1997, and the estimated net proceeds had
been invested at 5.55%, which was approximately equal to the one-year U.S.
Treasury bill rate at December 31, 1997. 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, a combined
effective state and federal income tax rate of 37% has been assumed for the
respective periods, resulting in an after tax yield of 3.50% for the year ended
December 31, 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 153,000 shares (minimum of EVR), 180,000 shares (midpoint
of EVR), 207,000 shares (maximum of EVR) or 238,050 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 CFC will receive
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 CFC 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.
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 Savers and Borrowers of Carnegie Savings Bank --
Liquidation Account" and Note 13 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."
7
<PAGE>
<TABLE>
<CAPTION>
At or For the Year Ended December 31, 1997
------------------------------------------------
153,000 180,000 207,000 238,050
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 ............................................. $ 1,530 $ 1,800 $ 2,070 $ 2,381
Less estimated offering expenses .......................... 260 260 260 260
------- ------- ------- -------
Estimated net proceeds ................................... 1,270 1,540 1,810 2,121
Less: ESOP funded by the Company ........................ (122) (144) (166) (190)
RSP funded by the Company ................ (61) (72) (83) (95)
------- ------- ------- -------
Estimated investable net proceeds ........................ $ 1,087 $ 1,324 $ 1,561 $ 1,836
======= ======= ======= =======
Net income (loss):
Historical net income (loss) ............................. $ (54) $ (54) $ (54) $ (54)
Pro forma earnings on investable net proceeds ............ 38 46 55 64
Pro forma ESOP adjustment(1) ............................. (8) (9) (10) (12)
Pro forma RSP adjustment(2) .............................. (8) (9) (10) (12)
------- ------- ------- -------
Total ............................................. $ (32) $ (26) $ (19) $ (14)
======= ======= ======= =======
Net income (loss) per share:
Historical net income (loss) per share ................... $ (.38) $ (0.32) $ (0.28) $ (0.24)
Pro forma earnings on net proceeds ....................... 0.27 0.28 0.29 0.29
Pro forma ESOP adjustment(1) ............................. (0.06) (0.05) (0.05) (0.05)
Pro forma RSP adjustment(2) .............................. (0.06) (0.05) (0.05) (0.05)
------- ------- ------- -------
Total(5) .......................................... $ (0.23) $ (0.14) $ (0.09) $ (0.05)
======= ======= ======= =======
Stockholders' equity:(3)
Historical ............................................... $ 1,170 $ 1,170 $ 1,170 $ 1,170
Estimated net proceeds ................................... 1,270 1,540 1,810 2,121
Less: Common stock acquired by ESOP(1) .................. (122) (144) (166) (190)
Common stock acquired by RSP(2) ................... (61) (72) (83) (95)
------- ------- ------- -------
Total ............................................. $ 2,257 $ 2,494 $ 2,731 $ 3,006
======= ======= ======= =======
Stockholders' equity per share:(3)
Historical ............................................... $ 7.65 $ 6.50 $ 5.65 $ 4.91
Estimated net proceeds ................................... 8.30 8.56 8.74 8.91
Less: Common stock acquired by ESOP(1) .................. (.80) (.80) (.80) (.80)
Common stock acquired by RSP(2) ................... (.40) (.40) (.40) (.40)
------- ------- ------- -------
Total ............................................ $ 14.75 $ 13.86 $ 13.19 $ 12.62
======= ======= ======= =======
Offering price as a percentage of pro forma stockholders'
equity per share(4) ...................................... 67.80% 72.15% 75.82% 79.24%
======= ======= ======= =======
Ratio of offering price to pro forma earnings per share(5) . (43.48)x (71.43)x (111.11)x (200.00)x
======= ======= ======= =======
</TABLE>
(footnotes on following page)
8
<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 CFC. 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. Interest
income earned by us on the ESOP debt offsets the interest paid by Carnegie
Savings Bank on the ESOP loan. Therefore, only the principal payments on
the ESOP debt are recorded as a tax-effected expense. The pro forma net
income assumes: (i) that 1,224, 1,440, 1,656 and 1,904 shares at the
minimum, midpoint, maximum and maximum, as adjusted of the EVR, were
committed to be released during the twelve months December 31, 1997 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 tax rate was 37% for such periods
based upon a combined federal and state tax rate; 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 CFC 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 period ended December
31, 1997. See Note 5 below. If it is assumed that all of the ESOP shares
were included in the calculation of earnings per share for the year ended
December 31, 1997, earnings per share would have been $(0.21), $(0.14),
$(0.09) and $(0.06), based on the sale of shares at the minimum, midpoint,
maximum and the maximum, as adjusted, of the EVR. See "Management of
Carnegie Savings Bank -- Other Benefits -- Employee Stock Ownership Plan."
(2) Assumes issuance to the RSP of 6,120, 7,200, 8,280, and 9,522 shares at the
minimum, midpoint, maximum, and maximum, as adjusted of the EVR. The
assumption in the pro forma calculation is that (i) shares were purchased
by CFC following the conversion, (ii) the purchase price for the shares
purchased by the RSP was equal to the purchase price of $10 per share (iii)
20% of the amount contributed was an amortized expense during such period,
and (iv) the effective tax rate was 37% for such periods based upon a
combined federal and state tax rate. 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 require regulatory 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 January
1, 1997, to be newly issued shares purchased from CFC 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
$14.19, $13.32, $12.68, and $12.14, and pro forma earnings per share would
have been $(0.20), $(0.13), $(0.08), and $(0.05). As a result of the RSP
from newly issued shares, stockholders' voting interests could be diluted
by up to approximately ^ 3.9%. The pro forma data assumes the required
regulatory and stockholder approvals. See "Management of Carnegie Savings
Bank -- Proposed Future Stock Benefit Plans --Restricted Stock Plan."
(3) Assumes that following the consummation of the conversion, CFC will adopt
the Stock 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 CFC stockholders to be held no earlier than six months after the
conversion. Under the Stock 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 Stock 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 Stock Option
Plan were newly issued at the beginning of the respective periods and the
exercise price for the stock option shares were equal to the Purchase
Price, the number of outstanding shares would increase to 157,284, 185,040,
212,796 and 244,715, respectively, pro forma stockholders'
9
<PAGE>
equity per share would have been $14.32, $13.51, $12.90, and $12.39,
and pro forma earnings per share for the year ended December 31, 1997
would have been $(0.20), $(0.14), $(0.09), and $(0.06).
(4) Consolidated stockholders' equity represents the excess of the carrying
value of the assets over its liabilities. The calculations are based upon
the number of shares issued in the conversion, without giving effect to SOP
93-6. The amounts shown do not reflect the federal income tax consequences
of the potential restoration to income of the tax 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.
(5) 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, 11,016, 12,960, 14,904, and 17,140 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 141,984, 167,040,
192,096, and 220,910 shares are assumed to be outstanding at the minimum,
midpoint, maximum, and maximum, as adjusted of the EVR. See Note 1 above.
10
<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 December 31, 1997.
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)
----------------------------------------------------------------------------------
$1,530,000 $1,800,000 $2,070,000 $2,380,500
Historical Minimum Midpoint Maximum Maximum, as adjusted
Percent Percent Percent Percent Percent
Amount of Assets(2) Amount of Assets(2) Amount of Assets(2) Amount of Assets(2) Amount of Assets(2)
------ --------- ------ --------- ------ --------- ------ --------- ------ ------------
(Dollars in thousands)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GAAP Capital...........$ 1,170 7.00% $^ 1,729 10.00% $1,729 10.00% $1,826 10.51% $1,946 11.12%
====== ===== ======= ===== ===== ===== ===== ===== ===== =====
Tangible Capital.......$ 1,170 13.65% $^ 1,729 10.00% $1,729 10.00% $1,826 10.51% $1,946 11.12%
Tangible Capital
Requirement.......... 129 1.50 ^ 259 1.50 ^ 259 1.50 ^ 261 1.50 ^ 262 1.50
------ ----- ------- ----- ----- ----- ----- ----- ----- -----
Excess................$ 1,041 12.15% $^ 1,469 8.50% $1,469 8.50% $1,565 9.01% $1,663 9.62%
====== ===== ======= ===== ===== ===== ===== ===== ===== =====
Core Capital(3)........$ 1,170 7.00% $^ 1,729 10.00% $1,729 10.00% $1,826 10.51% $1,946 11.12%
Core Capital
Requirement(4)....... 502 3.00 ^ 518 3.00 ^ 518 3.00 ^ 521 3.00 ^ 525 3.00
------ ----- ------- ----- ----- ----- ----- ----- ----- -----
Excess.................$ 668 4.00% $^ 1,211 7.00% $1,211 7.00% $1,305 7.51% $1,421 8.12%
====== ===== ======= ===== ===== ===== ===== ===== ===== =====
Total Risk-
Based Capital(4).....$ 1,272 14.84% $^ 1,831 20.90% $1,831 20.93% $1,928 21.97% $2,048 23.22%
Risk-Based Capital
Requirement.......... 686 8.00 ^ 701 8.00 ^ 701 8.00 ^ 702 8.00 ^ 705 8.00
------ ----- ------- ----- ----- ----- ----- ----- ----- -----
Excess.................$ 586 6.84% $^ 1,130 12.90% $1,130 12.93% $1,226 13.97% $1,342 15.22%
====== ===== ======= ===== ===== ===== ===== ===== ===== =====
</TABLE>
- --------------------
(1) 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 December 31, 1997. It is assumed that CFC will ^ purchase
all of the capital stock of Carnegie Savings Bank in exchange for the
amount necessary to increase ^ Carnegie Savings Bank's tangible regulatory
capital to 10%. At the minimum, midpoint, maximum and maximum, as adjusted,
it is assumed that CFC will use 58.4%, 50.3%, 50%, and 50%, respectively,
of the net conversion proceeds to purchase Carnegie Savings Bank's capital
stock.
(2) GAAP, adjusted, or risk-weighted assets as appropriate.
(3) Proposed regulations of the OTS could increase the core capital requirement
to a ratio between 4% and 5%, based upon an association's regulatory
examination rating. See "Regulation - Regulatory Capital Requirements."
(4) Our Risk-Based Capital includes our Tangible Capital plus $102,000 of our
allowance for loan losses. As of December 31, 1997, our risk-weighted
assets totaled approximately $8.6 million and our total adjusted assets
were $16.7 million. Net proceeds available for investment by us are assumed
to be invested in interest-earning assets that have a 50% risk-weighting.
See Note 9 to our financial statements.
11
<PAGE>
THE CONVERSION
Our board of directors and the OTS have approved the Plan of Conversion
("Plan" or "Plan of Conversion") subject to the Plan's 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 by the OTS.
General
On December 15, 1997, our board of directors adopted a Plan of
Conversion which provides for the conversion of Carnegie Savings Bank from a
Pennsylvania mutual savings bank into a Federal mutual savings bank and then
into a Federal capital stock savings bank and become a wholly owned subsidiary
of CFC. 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 CFC and the common stock of
CFC is being offered to our eligible depositors and 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 CFC's application to become a savings and loan
holding company and to acquire all of our common stock to be issued in the
conversion. Pursuant to such OTS approval, CFC plans to retain up to 50% of the
net proceeds from the sale of shares of our common stock and to use the
remaining proceeds to purchase all of the common stock we will issue in the
conversion. See "Use of Proceeds."
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 and any shares remaining after the community offering
may be offered in a public offering. The community offering or public offering,
if any, may commence anytime subsequent to the commencement of the subscription
offering. 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 or public offering. See "-- Community Offering," "-- Public
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 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 estimated
market valuation would not substantially change during any such extension. If
the valuation of the shares must be amended, no assurance can be given that such
amended valuation 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 and by the OTS.
12
<PAGE>
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 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 Carnegie
Savings Bank
Voting Rights. Currently in our mutual form, our depositors have voting
rights and may vote for the election of directors. Following the conversion, all
voting rights will be held solely by stockholders. A stockholder will be
entitled to one vote for each share of common stock owned.
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 CFC for our
stock, and no gain or loss will be recognized by CFC 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 the liquidation account of
us 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 the earnings and profits or deficit in
earnings and profits of us as of the date of conversion; and (xi) 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
which, based on certain assumptions, concludes that the subscription rights to
be received by Eligible Account Holders and other eligible subscribers do not
have any economic value at the time of distribution or at
13
<PAGE>
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
the community offering, public or syndicated public 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 Pennsylvania income taxes and have received an
opinion from Malizia, Spidi, Sloane & Fisch, P.C. that the conversion will be
treated for Pennsylvania 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. and FinPro 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 Pennsylvania 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. If the subscription rights are deemed to have an
ascertainable value, eligible account holders, supplemental account holders, and
other members may be deemed to have taxable income based upon the value of the
subscription rights.
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 to the value of his 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 deposit
accounts was to the total value of all deposit accounts in 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
other general creditors of ours. 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 the 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 on a complete liquidation of us 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, November 30, 1996. Each Supplemental Eligible Account Holder would have a
similar interest as of the qualifying date, March 31, 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 of ours (December 31)
is less than the amount in such account on the respective
14
<PAGE>
qualifying dates, then the interest in this special liquidation account would be
reduced from time to time by an amount proportionate to any such reduction, and
the interest would cease to exist if such deposit account were 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 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
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 account. Each person subscribing for shares will be required to
certify that he is purchasing shares solely for his 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
intend to pursue any and all legal and equitable remedies in the event we become
aware of the transfer of subscription rights and we will not honor orders known
by us to involve the transfer of such rights. In addition, persons who violate
the purchase limitations may be subject to sanctions and penalties imposed by
the OTS.
Subscription Priorities. 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 public offering, if any, 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 shares are available after
satisfaction of all subscriptions of all persons having prior rights and subject
to the purchase limitations set forth in the Plan and as described below under
"-- Limitations on Purchases 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 November 30,
1996. Each Eligible Account Holder (or persons through a single account) 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 5,000
shares ($50,000), 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. If the exercise of subscription rights
in this category results in an oversubscription, 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. 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 in Carnegie Savings
15
<PAGE>
Bank in the one-year period preceding the Eligibility Record Date, are
subordinated to the subscription rights of other Eligible Account Holders. See
"-- Limitations on Purchases and Transfer of Shares."
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 8% of the total shares issued in the
conversion. The ESOP is an Employee Plan.
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 207,000 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 March 31, 1998. Each Supplemental Eligible Account Holder who is not
an Eligible Account Holder (or persons through a single account) will receive
non-transferable subscription rights to purchase that number of shares which is
equal to the greater of 5,000 shares ($50,000), 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. If the exercise of subscription rights in this
category 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. The right 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. See "-- Limitations on
Purchases and Transfer of Shares."
Category 4: Other Members (Fourth Priority). Other Members are persons who have
a deposit account of at least $50 on the voting record 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 5,000 shares ($50,000) 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 or 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 in that state or foreign country;
(ii) the granting of subscription rights or offer or sale of shares of common
stock to those persons
16
<PAGE>
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) 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.
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
believed by us to involve the transfer of subscription rights.
Expiration Date. The subscription offering will expire at 12:00 p.m.
(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 for purchase after
satisfaction of all subscriptions of Eligible Account Holders, Employee Plans,
Supplemental Eligible Account Holders and Other Members, we may offer shares to
certain members of the general public with a preference to natural persons
residing in Allegheny County, Pennsylvania, under terms and conditions as
established by the Board of Directors. The community offering, if any, will
commence subsequent to the commencement of the subscription offering. No person
in the community offering, may purchase more than 5,000 shares or $50,000 of
common stock. The right of any person or entity to purchase shares in the
community offering is subject to our right to accept or reject purchases in
whole or in part either at the time of receipt of an order, or as soon as
practicable following the completion of the community offering.
Persons and entities not purchasing the common stock in the
subscription offering may purchase common stock in the community offering by
returning to us a completed and properly executed order form along with full
payment.
If all of the common stock offered in the subscription offering is
subscribed for, no common stock will be available for purchase in the community
offering. In the event an insufficient number of shares are available to fill
orders in the community offering, the available shares will be allocated among
persons submitting orders on an equitable basis determined by the Board of
Directors, provided that a preference will be given to natural persons residing
in Allegheny County, Pennsylvania. If the community offering extends beyond 45
days following the completion of the subscription offering (__________ ___,
1998) and such extension is approved by the regulatory authorities, subscribers
will have the right to modify, confirm, decrease or rescind subscriptions for
stock previously submitted. All sales of common stock in the community offering
will be at the same price as in the subscription offering.
We will place cash and checks submitted in the community offering in a
segregated account. Interest will be paid on orders made by check or in cash at
the passbook savings account rate from the date the payment is received until
the completion or termination of the conversion. In the event that the
conversion is not completed for any reason, all funds submitted pursuant to the
community offering will be promptly refunded with interest.
17
<PAGE>
Public Offering
All shares of common stock not purchased in the subscription offering
and community offering, if any, may be offered for sale to the general public in
a public offering through selected broker-dealers to be formed and managed by
Capital Resources, Inc.. The public offering, if any, will be conducted to
achieve the widest distribution of common stock subject to our right to reject
orders in whole or in part. Neither Capital Resources, Inc. nor any registered
broker-dealer shall have any obligation to take or purchase any shares of the
common stock in the public or syndicated public offering. Stock sold in the
public or syndicated public offering will be sold at the same price as all other
shares.
No person, may purchase more than 5,000 shares or $50,000 in the public
offering. In the event that selected dealer agreements are entered into in
connection with a public offering, we will pay commissions to selected dealers
(which may include Capital Resources, Inc.) of no more than ______% for shares
sold by the selected dealer.
The public offering will terminate no more than 45 days following the
subscription offering (__________ ___, 1998), unless extended with the approval
of the OTS.
Ordering and Receiving Shares
Use of Order Forms. Rights to subscribe in the subscription offering or
purchase stock in the community offering, if any, may only be exercised by
completion of an original order form. Persons ordering shares in the
subscription offering must deliver by mail or in person a properly completed and
executed 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 or modified
without our consent.
In the event an order form (i) is not delivered by the United States
Postal Service, (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 your 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 any irregularity 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 may 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 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 15c2-8. Order
forms will only be distributed with a prospectus.
Payment for Shares. Payment for shares of common stock in the
subscription offering may be made (i) in cash, if delivered in person, (ii) by
check or money order payable to us, or (iii) by authorization of withdrawal from
savings accounts (including certificates of deposit) maintained with us. Orders
of $25,000
18
<PAGE>
or more must be paid by Carnegie Savings Bank account withdrawals, certified
funds, cashier's check or money order. Appropriate means by which such
withdrawals may be authorized are provided in the order form. Once such a
withdrawal has been authorized, none 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 modify or cancel their
order. In the event that the conversion is not consummated, all funds submitted
pursuant to the offering will be refunded promptly with interest.
Individual Retirement Accounts ("IRAs") maintained with us do not
permit investment in common stock. If you are interested in using your IRA funds
to purchase our common stock, you must do so through a self-directed IRA. Since
we do not offer such accounts, we will allow you to make a trustee-to-trustee
transfer of the IRA funds to a trustee offering a self-directed IRA program with
the agreement that such funds will be used to purchase our common stock in the
offering. There will be no early withdrawal or IRS interest penalties for such
transfers. The new trustee would hold your stock in a self-directed account in
the same manner as we now hold your IRA funds. An annual administrative fee may
be payable to the new trustee. If you are interested in using your IRA funds to
purchase our common stock, you should contact our Stock Center as soon as
practicable so that the necessary forms may be forwarded for execution and
returned prior to the Expiration Date.
The ESOP may subscribe for shares by submitting its order form along
with evidence of a loan commitment from another financial institution or CFC 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 subscription offering have been distributed to
persons with subscriptions rights by mail. Additional copies are available at
our stock information center. Our officers may be available to answer questions
about 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 in the
subscription offering and if applicable, the community offering, 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.
19
<PAGE>
Marketing Arrangements
Capital Resources, Inc. has been engaged as our consultant and financial
advisor in connection with the offering. Capital Resources, Inc. has agreed to
exercise its best efforts to assist us to solicit subscriptions and purchase
orders for shares in the offering. However, Capital Resources, Inc. is not
obligated to take or purchase any shares of common stock in the offering.
Capital Resources, Inc. will receive $60,000 plus reimbursement for
out-of-pocket and legal expenses not to exceed $20,000. In the event that common
stock is offered through a public offering, we will pay an additional fee to
such selected dealers (which may include Capital Resources, Inc.) of up to 4.0%
of the aggregate amount of stock sold in connection with the public offering.
Also, we have agreed to indemnify Capital Resources, Inc. for reasonable costs
and expenses in connection with certain claims or liabilities which might be
asserted against Capital Resources, Inc. This indemnification covers the
investigation, preparation of defense and defense of any action, proceeding or
claim relating to misrepresentation or breach of warranty of the written
agreement between Capital Resources, Inc. and us or the omission or alleged
omission of a material fact required to be stated or necessary in the prospectus
or other documents.
The shares will be offered principally by the distribution of this
document and through activities conducted at a Stock Center located at our
office. The Stock Center is expected to operate during our normal business hours
throughout the offering. A registered representative employed by Capital
Resources, Inc. will be available at the Stock Center. Capital Resources, Inc.
will assist us in responding to questions regarding the conversion and the
offering and processing order forms.
Stock Pricing
Federal Regulations promulgated by OTS require that a converting
savings association issue and sell its capital stock at a total price equal to
the estimated pro forma market value of such stock in the converted savings
association, based on an independent valuation. These regulations require us to
retain an appraiser who is independent of us, experienced and expert in the area
of corporate appraisal and acceptable to OTS. FinPro, an independent economic
consulting and appraisal firm, which is experienced in the evaluation and
appraisal of business entities, including savings institutions involved in the
conversion process has been retained by us to prepare an appraisal of our
estimated pro forma market value. The term "independent appraiser" is defined by
the federal regulations, and FinPro was required to submit information to OTS to
establish its independence in conformity with those regulations. OTS has issued
Guidelines to appraisers in connection with the appraisal of converting savings
institutions which describe the methodology that OTS expects the appraiser to
utilize. OTS reviews the appraisal and any appraisal update submitted to them,
and the methodology employed therein. If OTS indicates that it does not approve
of the appraisal or appraisal update, this will necessitate a converting savings
association such as us to adjust the appraisal or appraisal updates. Although
OTS has not objected to the appraisal of us in connection with the conversion,
the final appraisal might change and we might be required to sell additional
stock to consummate the conversion. There also can be no assurance that the
common stock will exhibit the post-conversion price and trading patterns
experienced by other converting mutual association, or that the common stock
will sell in the aftermarket at $10.00 per share or in the aggregate at or above
the estimated pro forma market value.
FinPro will receive a fee of $23,500 for preparing the appraisal and
its assistance in connection with the preparation of a business plan and will be
reimbursed for reasonable out-of-pocket expenses up to $4,000. We have agreed to
indemnify FinPro under certain circumstances against liabilities and expenses
arising out of or based on any misstatement or untrue statement of a material
fact contained in the information supplied by us to FinPro.
20
<PAGE>
The appraisal was prepared by FinPro 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
Commonwealth of Pennsylvania which affect the operations of savings
institutions, and stock market values of certain savings institutions and stock
market conditions for publicly traded savings institutions and savings and loan
holding companies. In addition, FinPro 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.
On the basis of the above, FinPro has determined, in its opinion, that
as of March 12, 1998 our estimated aggregate pro forma market value was
$1,800,000. 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 has established a range of value from $1,530,000 to $2,070,000 for the
offering, the EVR. Upon the completion of the Offering, FinPro, after taking
into account factors similar to those involved in its prior appraisal as well as
the results of the Offering, will determine its estimate of the pro forma market
value as of the close of the Offering based on information available to FinPro
at that time. This may result in an increase or decrease in the EVR. An increase
or decrease in the EVR will result in a change in the number of shares to be
issued in the Conversion. See "Changes in Number of Shares to be Issued in the
Conversion."
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 must confirm to the OTS
that, to the best of FinPro's knowledge and judgment, nothing of a material
nature has occurred which would cause FinPro to conclude that the Purchase Price
on an aggregate basis was incompatible with FinPro's estimate of our pro forma
market value of us in converted form at the time of the sale. 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 has
relied upon and assumed the accuracy and completeness of financial and
statistical information provided by us. FinPro did not independently verify the
financial statements and other information provided by us, nor did FinPro value
independently our assets and liabilities. The appraisal considers us only as a
going concern and should not be considered 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. Copies of the appraisal report of FinPro setting forth the
method and assumptions for such appraisal are on file and available for
inspection at the main office of Carnegie Savings Bank and as set forth in
"Where You can Find Additional Information." Any subsequent updated appraisal
report of FinPro also will be available for inspection.
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 offerings, 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
21
<PAGE>
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. For a
presentation of the possible effects of an increase or decrease in the number of
shares to be issued, see "Pro Forma Data".
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 $1,530,000 or more than
$2,380,500. If the offering is either less than $1,530,000 or more than
$2,380,500, only persons who subscribed for shares will have an opportunity to
modify or cancel their orders. We will resolicit such persons by providing them
an updated prospectus or supplement (and filing a post-effective amendment to
this offering). 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 individual person
or persons ordering through a single account in the subscription offering, and
if applicable, the community offering or public offering, is 5,000 shares. In
addition, no person or persons ordering through a single account, together with
their associates, or group of persons acting together, may purchase in all
categories of the conversion more than 7,500 shares, except for the Employee
Plans which may purchase up to 8% 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. For purposes of the 35% limitation, purchases
by the ESOP will not be included. Pursuant to the Plan, the board of directors
has the authority to determine whether persons are associates or acting in
concert.
Depending on market conditions and the results of the offering, the
board of directors may 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 8% 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 or public or syndicated public 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 director 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 a director or officer of us, or any of our
subsidiaries. For example, a corporation of which a person serves as an
22
<PAGE>
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 under 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.
Persons must certify on their order form that their purchase does not
conflict with the purchase limitations. In the event that the purchase
limitations are violated 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.
Restrictions on Repurchase of Shares
Generally, during the first year following the conversion, CFC may not
repurchase its shares and during each of the second and third years following
the conversion, CFC may repurchase 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 CFC and affiliated purchasers. If, in the future, the rules and
regulations regarding the repurchase of stock are liberalized, CFC 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 CFC 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.
23
<PAGE>
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 not less than 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, the material terms of which are set forth herein. The Plan
is attached to the proxy statement mailed to certain depositors. 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.
24
<PAGE>
CARNEGIE SAVINGS BANK
STATEMENTS OF OPERATIONS
The statements of operations for the years ended December 31, 1997 and
1996, have been audited by Goff Ellenbogen Backa & Alfera, LLC, whose report
appears elsewhere in this Prospectus.
<TABLE>
<CAPTION>
Years Ended
December 31,
-----------------------------------
1997 1996
------------ ------------
<S> <C> <C>
INTEREST INCOME:
Interest on loans................................ $ 859,072 $ 843,488
Interest-bearing deposits with other banks....... 27,478 27,626
Interest on investment:
Taxable........................................ 105,860 66,467
Nontaxable..................................... 31,393 33,527
Mortgage-backed securities....................... 198,454 102,655
--------- ---------
Total interest income..................... 1,222,257 1,073,763
INTEREST EXPENSE
Interest on certificates of deposit............ 570,883 440,380
Interest on other savings accounts............. 99,797 105,828
Interest on borrowings......................... 567 5,505
---------- ----------
Total interest expense..................... 671,247 551,713
--------- ---------
Net interest income................................ 551,010 522,050
Provision for loan losses...................... 73,000 2,203
---------- ----------
Net interest income after provision for loan
losses............................................. 478,010 519,847
NONINTEREST INCOME (LOSS):
Service charges and fee income................. 54,204 41,199
Gain on sale of REO............................ 13,693 -
Gain on sale of securities..................... 1,677 7,733
Dividend income................................ 63 9,379
Net income (loss) - real estate owned.......... (7,515) 13,597
Other income................................... 369 2,067
---------- ----------
Total noninterest income................... 62,491 73,975
NONINTEREST EXPENSES:
Wages, payroll taxes and benefits.............. 442,353 249,065
General and administrative..................... 122,783 140,535
Data processing charges........................ 62,534 48,533
Depreciation and amortization.................. 21,057 20,870
---------- ----------
Total noninterest expenses................. 648,727 459,003
---------- ----------
Net income (loss) before income taxes.............. (108,226) 134,819
Income tax expense (benefit)................... (54,425) 35,400
---------- ---------
Net income (loss).................................. $ (53,801) $ 99,419
========== =========
</TABLE>
See accompanying notes beginning on page F-^ 6.
25
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's discussion and analysis of financial condition and results
of operations 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 elsewhere in
this document.
General
CFC has recently been formed and, accordingly, has no results of
operations. The following discussion relates only to Carnegie Savings Bank's
financial condition and results of operations. Please refer to our Pro Forma
Data discussion beginning on page ^ 7 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
(our interest rate spread), and (ii) the relative amounts of interest-earning
assets and interest-bearing liabilities, consisting of deposits. Our results of
operations are also affected by non-interest income, including, primarily,
income from customer deposit account service charges, gains and losses from the
sale of investments and mortgage-backed securities and non-interest expense,
including, primarily, compensation and employee benefits, federal deposit
insurance premiums, office occupancy costs, and data processing costs. Our
results of operations also are 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.
Recent Business Strategy
To the extent new deposits have exceeded our loan originations, we have
invested these deposits primarily in marketable securities so that they are
available to fund new loans in our market area. As discussed herein, this has
reduced our interest rate risk, but has adversely affected our net interest
income. Since the new deposits and stock proceeds are expected to exceed our
ability to originate loans in our market area, we may purchase loans,
mortgage-backed securities and other investments with higher yields that will
improve our interest income and net income.
Market Risk Analysis
Asset/Liability Management. Our assets and liabilities are interest
rate sensitive. 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. We do not engage in, or intend to engage in, trading activities
or use derivative instruments to control our interest rate risk.
26
<PAGE>
We emphasize origination of fixed rate real estate loans in the nature
of one- to- four-family loans. These loans approximated 85% of our loan
portfolio at December 31, 1997. At December 31, 1997, the average weighted term
to maturity of our mortgage loan portfolio was slightly more than 21 years and
the average weighted term to maturity of our deposits was slightly more than 21
months. See "Risk Factors- Insufficient Loan Demand" and "Business of Carnegie
Savings Bank -- Lending Activities."
Net Portfolio Value. In recent years, we had been a Pennsylvania
chartered mutual savings bank regulated by the Pennsylvania Department of
Banking, and therefore had not been required to measure our interest rate
sensitivity in the manner required by the OTS. We now compute amounts by which
the net present value of expected cash flows from assets, liabilities and off
balance sheet items (our net portfolio value or "NPV") would change in the event
of a range of assumed changes in market interest rates. These computations
estimate the effect on our NPV from instantaneous and permanent 1% to 3% (100 to
300 basis points) increases and decreases in market interest rates.
The following table presents our NPV based upon calculations of FinPro,
Inc. These calculations were based upon assumptions FinPro believes to be
fundamentally sound, although they may vary from assumptions utilized by other
data providers. These assumptions relate to interest rates, loan prepayment
rates, core deposit duration, and the market values of certain assets under the
various interest rate scenarios. During the preparation of the calculations,
FinPro relied on and assumed the accuracy and completeness of the data provided
by us and other sources which FinPro deemed reliable. FinPro did not
independently verify the data provided to it by us.
Percentage Change in Net Portfolio Value
Changes
in Market Change in NPV
Interest Rates NPV Ratio(1) Ratio(2)
(basis points)
+ 300 4.66% (680) bp
+ 200 7.31 (414) bp
+ 100 9.55 (190) bp
0 11.45 --
- 100 13.07 161 bp
- 200 14.43 298 bp
- 300 15.59 414 bp
- ------------------
(1) Calculated as the estimated NPV divided by present value of total assets.
(2) Calculated as the excess (deficiency) of the NPV ratio assuming the
indicated change in interest rates over the estimated NPV ratio assuming no
change in interest rates.
Management believes these calculations indicate that we would be deemed
to have a greater than normal level of interest rate risk under applicable
regulatory capital requirements. However, due to our net size and risk-based
capital level, we are exempt from the interest rate risk component. See
"Regulation - - Savings Institution Regulation -- Regulatory Capital
Requirements."
While we cannot predict future interest rates or their effects on our
NPV or net interest income, we do not expect current interest rates, assuming
rates remain stable, to have a material adverse effect on our NPV or net
interest income. Computations of prospective effects of hypothetical interest
rate changes are based on numerous assumptions, including relative levels of
market interest rates, prepayments and
27
<PAGE>
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 maturity or periods of repricing they may react
at different times and in different degrees to changes in the market interest
rates. 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 calculations set
forth above. Additionally, an increased credit risk may result as the ability of
many borrowers to service their debt may decrease in the event of an interest
rate increase.
The board of directors reviews our asset and liability policies. 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.
Financial Condition
Our total assets increased $1.6 million, or 10.60%, to $16.7 million at
December 31, 1997 from $15.1 million at December 31, 1996. Our increase in
assets was primarily attributable to increases of $615,000 in mortgage-backed
securities, $380,000 in investment securities, $313,000 in real estate owned and
$294,000 in cash and cash equivalents. These increases were partially offset by
a $227,000 decrease in net loans receivable.
The increases in mortgage-backed securities and other investment
securities were the result of a temporary decrease in loan applications. The
changes in real estate owned resulted from the sale in April, 1997, of a
foreclosed property, and the purchase in December, of a different property, in
order to protect our interests as junior lienholder in a foreclosure.
Our liabilities also increased by $1.6 million. The increase was
primarily due to increases of $1.8 million in deposits and $158,000 in other
liabilities. These increases were partially offset by a decrease of $300,000 in
a line of credit from another financial institution. Deposits increased via a
special certificate of deposit promotion. Part of the proceeds were used to
repay the advance on the line of credit of $300,000.
Results of Operations
Our net income decreased $153,000 to a net loss of $54,000 for 1997
compared to net income of $99,000 for 1996. Our decrease was primarily
attributable to the $29,000 increase in net interest income being offset by a
$71,000 increase in our provision for loan losses. Further, our noninterest
income decreased by $12,000 and our noninterest expenses increased by $190,000.
For 1997, we had a net loss before income taxes of $108,000 compared to net
income before income taxes of $135,000 for 1996. As a result, we had an income
tax benefit of $54,000 for 1997 compared to income tax expense of $35,000 for
1996.
Net Interest Income. Net interest income is the most significant
component of our income from operations. Net interest income is the difference
between interest we receive on our interest-earning assets primarily loans,
investment and mortgage-backed securities and interest we pay on our
interest-bearing liabilities, primarily deposits. Net interest income depends on
the volume of and rates earned on interest-earning assets and the volume of and
rates paid on interest-bearing liabilities.
28
<PAGE>
The following table sets forth certain information relating to our
average balance sheet and reflects the average yield on assets and average cost
of liabilities for the periods indicated and the average yields earned and rates
paid. Such yields and cost are derived by dividing income or expenses by the
average balance of assets of liabilities, respectively, for the periods
presented. Average balances are derived from month-end balances. Management does
not believe that the use of month-end balances instead of daily balances has
caused any material differences in the information presented.
<TABLE>
<CAPTION>
At December 31, Year ended December 31,
----------------- ----------------------------------------------------------------------------------------
1997 1997 1996 1995
----------------- ----------------------------- ------------------------------ -------------------------
Average Average Average Average
Yield/ Average Yield/ Average Yield/ Average Yield/
Balance Cost Balance Interest Cost Balance Interest Cost Balance Interest Cost
------- ---- ------- -------- ---- ------- -------- ---- ------- -------- ----
(Dollars in thousa
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Loans receivable (1)...$ 9,585 9.97% $ 9,730 $ 860 8.84% $ 9,391 $ 843 8.98% $ 9,278 $ 847 9.13%
Mortgage-backed
securities............ 2,628 7.53 2,690 198 7.36 1,478 ^ 103 ^4.71 771 47 6.10
Investment securities.. ^2,530 ^5.41 ^2,568 137 5.33 2,185 ^ 100 ^4.58 1,659 86 5.18
Other interest-
earning assets(2)..... ^ 951 ^2.83 744 27 3.63 604 28 4.64 734 39 5.31
------- ------ ------ --------- ------- ------- ------
Total interest-
earning assets......$ 15,694 7.79 15,732 1,222 7.77 13,658 ^1,074 ^7.86 12,442 1,019 8.19
------- ------ ----- --------- ------ ------ -----
Non-interest-earning
assets................. 1,030 516 567 748
------- ---------- -------
Total assets.........$ 16,724 $16,248 $ 14,225 $13,190
======= ====== ========= ======
Interest-bearing
liabilities:
NOW accounts...........$ ^1,030 1.26 $ 1,150 13 1.13 $ 941 9 0.96 $ 991 12 1.21
Savings account........ 3,375 2.58 3,346 87 2.60 3,473 97 2.79 3,327 142 4.27
Money market
accounts.............. -- -- -- -- -- -- -- -- -- -- --
Certificates of
deposit............... 10,225 5.58 9,888 571 ^5.77 8,090 440 5.44 7,391 382 5.17
Other liabilities...... -- -- 12 -- -- 87 6 6.90 21 -- --
-------- ------- ------ --------- -------- -------- ------
Total interest-
bearing
liabilities........$ 14,631 4.59 14,396 671 4.66 12,591 552 4.38 11,730 536 4.57
-------- ------ --- ------ --- ------ ---
Non-interest-
bearing liabilities....
Non-interest bearing
deposits............. 547 264 191 112
-------- ------ ------
Other liabilities...... 376 332 292 300
-------- ------ ------ ------
Total liabilities....$ 15,554 14,992 13,074 12,142
-------- ------ ------ ------
Retained earnings........ 1,170 1,256 1,151 1,048
------ ---------- -------
Total liabilities
and retained
income.............$ 16,724 $16,248 $ 14,225 $13,190
======== ======= =========== =======
Net interest income.... $ 551 $ ^522 $ 483
======= ======== =======
Interest rate
spread (3)............ 3.20% 3.11% ^ 3.48% 3.62%
==== ==== ==== ====
Net yield on interest-
earning assets (4)... 3.51% 3.50% ^ 3.82% 3.88%
==== ==== ==== ====
Ratio of average
interest-earning
assets to average
interest-bearing
liabilities............ 109.28% 108.47% 106.07%
====== ====== ======
</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 in interest-earning assets represents net interest income as a
percentage of average interest earning assets.
29
<PAGE>
The table below sets forth certain information regarding changes in our
interest income and interest expense for the periods indicated. For each of
interest-earning assets and interest-bearing liabilities, information is
provided on charges 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>
Year Ended December 31,
-----------------------------------------------------------------------
1997 vs. 1996 1996 vs. 1995
--------------------------------- -----------------------------------
Increase (Decrease) Increase (Decrease)
Due to Due to
--------------------------------- -----------------------------------
Rate Rate
Volume Rate Volume Net Volume Rate Volume Net
------- ------ ------ ------ ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest income: (In thousands)
Loans receivable .................. $ 30 $ (14) $ (1) $ 15 $ 10 $ (14) $ -- $ (4)
Mortgage-backed securities ........ 72 21 18 111 43 (1) (1) 41
Investment securities ............. 22 (8) (1) 13 27 8 3 38
Other interest earning assets ..... 6 (5) (1) -- (6) (6) 1 (11)
----- ----- ----- ----- ----- ----- ----- -----
Total interest-earning assets .... $ 130 $ (6) $ 15 $ 139 $ 74 $ (13) $ 3 $ 64
===== ===== ===== ===== ===== ===== ===== =====
Interest expenses:
NOW Accounts ...................... $ 2 $ 2 $ -- $ 4 $ (1) $ (2) $-- $ (3)
Savings Account ................... (4) (6) -- (10) 6 (49) (2) (45)
Money Market accounts ............. -- -- -- -- -- -- -- --
Certificates of deposit ........... ^ 97 27 6 130 36 21 2 59
Other liabilities ................. (4) (2) 1 (5) ^ 4 -- 1 5
----- ----- ----- ----- ----- ----- ----- -----
Total interest-bearing liabilities $ 91 $ 21 $ 7 $ 119 $ 45 $ (30) $ 1 $^ 16
===== ===== ===== ===== ===== ===== ===== =====
Change in net interest income ...... $ 39 $ (27) $ 8 $ 20 $ 29 $ 17 $ 2 $^ 48
===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
30
<PAGE>
^ Our net interest income increased $29,000 in 1997 compared to 1996.
The increase of $2.1 million in the average balances of our interest-earning
assets more than offset the decrease of 19 basis points in their average yield.
As a result, our interest income increased $148,000. This was primarily due to
an increase of $1.2 million in the average balance of mortgage-backed securities
coupled with an increase of 49 basis points in the average yield on
mortgage-backed securities and an increase of $400,000 in the average balance of
investment securities coupled with an increase of 62 basis points in the average
yield on investment securities.
The increase of $1.8 million in the average balance of our
interest-bearing liabilities was coupled with an increase of 28 basis points in
the average rate of interest we paid on those liabilities. This was due
primarily to an increase of $1.8 million in the average balances of our
certificates of deposit and an increase of 33 basis points in the average rate
we paid on our certificates of deposit. Certificates of deposit increased as a
result of a special promotion, at a rate slightly above market.
Provision for Loan Losses. Our provision for loan losses increased
$71,000 to $73,000 for the year ended December 31, 1997 from $2,000 in the same
period in 1996. Prior to 1997, in order to evaluate the risks associated with
our loan portfolio and the overall quality of our loan portfolio, management
reviewed all loans on a collective basis. During 1997, management reevaluated
its loan review process by measuring the risks and the overall quality of our
loan portfolio on an individual loan basis. As a result of this process, the
local economic trends, and the portfolio mix, management determined it was
necessary to increase ^ the allowance for loan ^ loss to an acceptable level.
Because of the increased coverage of the allowances for loan losses to total
loans, management believes the allowance for loan losses is at a level that is
considered to be 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.
Noninterest Income. Our noninterest income decreased by $12,000 for
1997 compared to 1996. The $13,000 increase in service charges and fee income
was more than offset by a decrease of $21,000 in net income on real estate
owned. We had a net loss on real estate owned of $8,000 in 1997 compared to net
income of $14,000 in 1996 due to high maintenance costs in the first quarter of
1997 and due to the costs incurred in connection with the sale of the property
in April 1997.
Noninterest Expense. Our noninterest expense increased by $190,000 in
1997. The increase was primarily attributable to a $193,000 increase in
compensation expenses. The increased compensation expenses include $36,000 and
$123,000 for accrued expenses related to the implementation of a supplemental
executive retirement plan and a directors consultation and retirement plan,
respectively, which were implemented in 1997. ^
As a result of the conversion, our noninterest expense might also
increase because of the costs associated with our employee stock ownership plan,
restricted stock ownership plan, if implemented, and the costs of becoming a
public company.
A great deal of information has been disseminated about the global
computer year 2000. Many 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 our operation. Data processing is also essential to
most other financial institutions and many other companies. Most of our material
data processing that could be affected by this problem is provided by a third
party service bureau. Our service bureau has advised us that it expects to
resolve this potential problem before the year 2000. However,
31
<PAGE>
if our service bureau is unable to resolve this potential problem in time, we
would likely experience significant data processing delays, mistakes or
failures. These delays, mistakes or failures could have a significant adverse
impact on our financial condition and results of operation.
Income Tax Expense (Benefit). Our income taxes decreased $90,000 to a
tax benefit of $54,000 in 1997 compared to an income tax expense of $35,000 in
1996, due to a net loss on our operations in 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 minimum ratio currently is 4.0%
and our regulatory liquidity ratio was 8.90%, 11.74%, and 16.80% at December 31,
1997, December 31, 1996, and December 31, 1995, respectively.
Our primary sources of funds are deposits, repayment of loans and
mortgage-backed securities, maturities of investments, interest-bearing deposits
with other banks and funds provided from operations. While scheduled repayments
of loans and mortgage-backed securities and maturities of investment securities
are predicable 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 liquid resources principally to fund loan commitments,
maturing certificates of deposit and demand deposit withdrawals, to invest in
other interest-earning assets, and to meet operating expenses.
Net cash used for 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 1997 was
$73,000 compared to net cash provided by our operations of $175,000 for 1996.
Net cash used for our investing activities (i.e., cash disbursed,
primarily for investment securities and mortgage-backed securities portfolios
and our loan portfolio) totaled $1.1 million for 1997, a decrease of $1.2
million from 1996.
Net cash provided by our financing activities (i.e., cash receipts from
our net increases in deposits) totaled $1.5 million in 1997 compared to $1.3
million in 1996.
BUSINESS OF CARNEGIE FINANCIAL CORPORATION
CFC is not an operating company and has not engaged in any significant
business to date. It was formed in February 1998 as a Pennsylvania-chartered
corporation to be the holding company for Carnegie Savings Bank. The holding
company structure and retention of proceeds 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 no present plans regarding diversification, acquisitions, expansion, or
repurchases.
Since CFC will own only one savings bank, 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.
CFC 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.
32
<PAGE>
The office of the CFC is located at 17 West Mall Plaza, Carnegie,
Pennsylvania. The telephone number is (412) 276-1266.
BUSINESS OF CARNEGIE SAVINGS BANK
The principal sources of funds for our activities are deposits and
payments on loans and investments. Our deposits totalled $15.2 million at
December 31, 1997. Funds are used primarily for the origination of loans secured
by mortgages on one- to four-family residences and home equity loans which are
located in our market area, consumer loans and the purchase of mortgage-backed
and investment securities. Residential real estate loans totalled $8.2 million,
or 84.90%, of our total loans receivable portfolio at December 31, 1997. Our
principal source of revenue is interest received on loans and investments and
our principal expense is interest paid on deposits.
Market Area
Our office is located in Carnegie, a suburb southwest of Pittsburgh,
Pennsylvania. Our primary market area is within Allegheny County and consists of
the Borough of Carnegie and the surrounding municipalities. Most of our deposits
and lending activity is generated from individuals who live in these areas. We
are a community-oriented institution and have served the Carnegie area community
since 1915.
Carnegie is a middle income community having a large proportion of
senior citizens. It is presently enjoying a period of revitalization, which
plans having been approved for a 60-unit townhouse project, and plans proceeding
to open the mall area to vehicular traffic. The Port Authority of Allegheny
County is presently constructing a busway from downtown Pittsburgh to the
Pittsburgh International Airport, with Carnegie slated to be a parking site for
those who will use the busway. A multi-floor municipal parking garage is
planned, with retail establishments slated for the ground floor. Economically,
the town appears to be improving, and Borough officials are quite optimistic
about the town's future.
The Greater Pittsburgh area has been in the process of restructuring
over the past decade. Once centered on heavy manufacturing, primarily steel, its
economic base is now more diverse, including technology, health and business
services. Several "Fortune 500" industrial firms are headquartered in the
Greater Pittsburgh area, including USX Corporation. The largest employers in
Pittsburgh, by the number of local employees, include the United States
Government, the Commonwealth of Pennsylvania, USAirways, University of
Pittsburgh Medical Center, and the University of Pittsburgh. Seven colleges and
universities are located in the greater Pittsburgh area.
Lending Activities
The Bank makes mortgage loans, both residential and commercial,
construction loans, home improvement loans, equity lines of credit, consumer and
savings account loans. The lines of credit are adjustable rate (based on the
Wall Street Journal prime). Some mortgages are adjustable (based on the one-year
T-bill). Savings account loans adjust with the rate paid on the underlying
collateral. Recent market conditions have made borrowers reluctant to agree to
ARMs.
33
<PAGE>
The following table sets forth information concerning the types of
loans held by us.
<TABLE>
<CAPTION>
At December 31,
-------------------------------------------------------
1997 1996
------------------------ ----------------------
$ % $ %
--------- -------- -------- --------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Type of Loans:
Real Estate Loans:
Construction................................ $ 251 2.59% $ 70 0.71%
Residential(1).............................. 8,236 84.90 8,360 84.87
Commercial.................................. 343 3.54 418 4.24
------- ------
Total Residential 8,830 8,848
Consumer Loans:
Share loans................................. 119 1.23 156 1.58
Automobile loans............................ 383 3.95 381 3.87
Unsecured................................... 368 3.79 466 4.73
------- ------ ------- ------
Total Consumer............................ 870 1,003
Total Loans................................. 9,700 100.00% 9,851 100.00%
----- ====== ----- ======
Less:
Loans in process............................ -- --
Deferred loan origination fees and costs.... -- --
Allowance for loan losses .................. 115 39
------- -------
Total loans, net......................... $ 9,585 $ 9,812
======= =======
</TABLE>
(1) Includes $254,000 and $94,000 for fiscal 1997 and 1996, respectively, of
multi-family loans all of which have adjustable rates of interest.
34
<PAGE>
The following sets forth the maturity of our loan portfolio at December
31, 1997. The table does not include prepayments or scheduled principal
repayments. All loans are shown as maturing based on contractual maturities.
<TABLE>
<CAPTION>
Real Estate Loans
------------------------------------------------
Residential Commercial Construction Consumer Total
----------- ---------- ------------ -------- -----
(In thousands)
<S> <C> <C> <C> <C> <C>
Amounts due:
Within 1 year.............. $ 303 $ -- $ 251 $ 44 $ 598
Over 1 to 3 years.......... 128 -- -- 307 435
Over 3 to 5 years.......... 635 -- -- 396 1,031
Over 5 to 10 years......... 1,246 -- -- 78 1,324
Over 10 to 20 years........ 1,562 343 -- 45 1,950
Over 20 years.............. 4,362 -- -- -- 4,362
------ ------ ---- ------ ------
Total amount due.......... $ 8,236 $ 343 $ 251 $ 870 9,700
====== ====== ==== ====== ------
Less:
Allowance for loan loss 115
Loans in process --
Deferred loan fees --
------
Loans receivable, net $ 9,585
======
</TABLE>
The following table sets forth dollar amount of all loans due after
December 31, 1997, which have predetermined interest rates and which have
floating or adjustable interest rates.
<TABLE>
<CAPTION>
Floating or
Fixed Rates Adjustable Rates Total
----------- ---------------- -----
<S> <C> <C> <C>
Residential $ 7,248 $ 988 $ 8,236
Commercial -- 343 343
Construction 251 -- 251
Consumer 870 -- 870
--------- --------- ---------
Total $ 8,369 $ 1,331 $ 9,700
========= ========= =========
</TABLE>
Real Estate Loans. Our primary lending activity consists of the
origination of one- to four-family fixed rate residential mortgage loans secured
by property located in our primary market area. We generally originate one- to
four-family fixed rate residential mortgage loans in amounts up to 95% of the
lesser of the appraised value or purchase price, with private mortgage insurance
required on loans with a loan-to-value ratio in excess of 80%. Generally, the
maximum loan-to-value ratio on mortgage loans secured by non-owner occupied
properties and commercial buildings is limited to 70%. We retain all of our
mortgage loans and originate these loans with maturities of up to 30 years.
Mortgage loans originated and held by us 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.
We originate home equity loans and second mortgage loans which are
secured by one to four-family residences. We originate these loans on one- to
four-family residences with fixed rate terms of up to 15
35
<PAGE>
years. The loans are generally subject to a 80% combined loan-to-value
limitation, including any other outstanding mortgages or liens.
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. These risks can be significantly affected by
supply and demand conditions in the market for office and retail space and may
also be subject to adverse conditions in the economy.
Consumer Loans. We offer consumer loans in order to provide a wider
range of financial services to our customers. Consumer loans totaled $870,000,
or 8.97% of our total loans at December 31, 1997. Our consumer loans consist of
share loans, automobile loans, and unsecured loans. We make unsecured loans to
certain creditworthy borrowers. Loans secured by vehicles are financed for terms
up to 60 months. Loans secured by deposits of the bank are granted in amounts up
to 95% of the deposited amount.
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. We establish various lending
limits for our officers and maintain a loan committee consisting of the board of
directors. The president and loan officer have authority to approve home equity
loans up to $35,000 and $20,000, respectively, and the Officer Loan Committee
has the authority to approve unsecured consumer loans up to $5,000. The loan
committee ratifies all residential mortgage loans and all other real estate and
consumer loans.
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. 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.
Title insurance is generally required on all real estate mortgage
loans. We do not require title insurance on home equity loans and second
mortgages under $50,000, but we obtain a property report, which indicates
whether there are any liens or other encumbrances against the property.
Borrowers also must obtain fire and casualty insurance. Flood insurance is also
required on loans secured by property that is located in a flood zone.
Loan Commitments. Written commitments are given to prospective
borrowers on all approved real estate loans. Generally, the commitment requires
acceptance within 45 days of the date of issuance. At December 31, 1997, there
were no outstanding commitments to cover originations of mortgage loans.
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 has been $500,000.
At December 31, 1997, our five largest borrowers had aggregate outstanding
balances of between $294,000 and $495,000. These loans are performing loans.
36
<PAGE>
Nonperforming and Problem Assets
Loan Delinquencies. When a mortgage loan becomes 30 days past due, a
notice of nonpayment is sent to the borrower. If such payment is not received by
month end, an additional notice of nonpayment is sent to the borrower. After 60
days, if payment is still delinquent, a notice of right to cure default is sent
to the borrower giving 30 additional days to bring the loan current before
foreclosure is commenced. 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.
Loans are reviewed and are placed on a non-accrual status when the loan
becomes more than 90 days delinquent or 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.
Nonperforming Assets. The following table sets forth information
regarding nonaccrual loans and real estate owned, as of the dates indicated. We
have no loans categorized as troubled debt restructurings within the meaning of
SFAS 15 and no impaired loans within the meaning of SFAS 114, as amended by SFAS
118. Interest income that would have been recorded on loans accounted for on a
nonaccrual basis under the original terms of such loans was approximately $3,000
for the year ended December 31, 1997.
We presently have one piece of real estate owned property, a
residential property in Peters Township, appraised at $540,000. The original
loan, an equity line of credit, was granted on March 29, 1989, in the amount of
$300,000 and was increased to $320,000 on May 9, 1995. Management believes that
the carrying value of this real estate property is adequate, however, there can
be no assurance that we will not recognize additional significant losses to this
property.
37
<PAGE>
The borrowers defaulted on their first mortgage. As second lienholders,
we purchased the property at a Sheriff's Sale on December 5, 1997.
<TABLE>
<CAPTION>
At December 31,
---------------------------------------
1997 1996 1995
---- ---- ----
(Dollars in thousands)
<S> <C> <C> <C>
Loans accounted for on a non-accrual basis:
Mortgage loans:
Construction loans...................................... $ - $ - $ -
Permanent loans secured by 1-4 dwelling units........... 14 9 57
All other mortgage loans ............................... - - -
Non-mortgage loans:
Other................................................... - - -
Consumer................................................ 28 24 16
---- ----- ----
Total..................................................... $ 42 $ 33 $ 73
==== ===== ====
Accruing loans which are contractually past
due 90 days or more:
Mortgage loans:
Construction loans...................................... - - -
Permanent loans secured by 1-4 dwelling units........... - - -
All-other mortgage loans................................ - - -
Non-mortgage loans:
Other................................................... - - -
Consumer ............................................... - - -
---- ----- -----
Total................................................... $ - $ - $ -
==== ===== =====
Total non-accrual and accrual loans $ 42 $ 33 $ 73
=== ==== ====
Real estate owned......................................... $ 480 $ 167 $ 167
=== === ====
Other non-performing assets............................... $ - $ - $ -
==== ===== =====
Total non-performing assets............................... $522 $200 $240
=== === ===
Total non-accrual and accrual loans to net loans......... 0.44% 0.34% 0.81%
==== ==== ====
Total non-accrual and accrual loans to total assets...... 0.25% 0.22% 0.53%
==== ==== ====
Total non-performing assets to total assets............... 3.12% 1.32% 1.75%
==== ==== ====
</TABLE>
Classified Assets. OTS regulations provide for a classification system
for problem assets of savings banks which covers all problem assets. Under this
classification system, problem assets of savings banks 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 bank 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 weaknesses that do not currently warrant
classification in one of the aforementioned categories.
When a savings bank 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
38
<PAGE>
activities, but which, unlike specific allowances, have not been allocated to
particular problem assets. When a savings bank 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 bank'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 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 bank's regulatory capital. Specific valuation allowances for loan losses
generally do not qualify as regulatory capital.
The following table sets forth our classified assets in accordance with
our classification system.
At December 31, 1997
--------------------
(In thousands)
Special Mention.............. $104
Substandard.................. 35
Doubtful assets.............. 42
Loss assets.................. 11
---
$192
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 of the amount of the 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. Any increase in the loan loss allowance required by the OTS would
have a negative impact on our earnings.
39
<PAGE>
The following table illustrates the allocation of the allowance for
loan losses for each category of loan. 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 December 31,
---------------------------------------------------------------------
1997 1996
----------------------------------- ------------------------------
Percent of Percent of
Loans in Each Loans in Each
Category to Category to
Amount Total Loans Amount Total Loans
------ ----------- ------ -----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Type of Loans:
Real Estate Loans:
Construction $ -- 2.59% $ -- 0.71%
Residential 75 84.90 23 84.87
Commercial 3 3.54 7 4.24
------ ------
Total Real Estate 78 30
Consumer Loans:
Share Loans -- 1.23 -- 1.58
Automobile Loans -- 3.95 -- 3.87
Unsecured 37 3.79 9 4.73
------ ------
Total Consumer 37 9
Total $ 115 100.00% $ 39 100.00%
====== ====== ====== ======
</TABLE>
40
<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>
For the Years Ended
December 31,
-----------------------------
1997 1996
---------- ---------
(In thousands)
<S> <C> <C>
Total loans outstanding......................... $ 9,700 $ 9,851
======== =====
Average loans outstanding....................... $ 9,730 $^9,391
======== =====
Allowance balance (at beginning of period)..... $ 39 $ 38
Provision:
Real Estate Loans:
Construction.................................. -- --
Residential................................... 73 2
Commercial.................................... -- --
Consumer Loans:
Share Loans................................... -- --
Automobile Loans.............................. -- --
Unsecured..................................... -- --
Net (Charge-offs) recoveries:
Real Estate Loans:
Construction.................................. -- --
Residential................................... -- --
Commercial.................................... -- --
Consumer Loans:
Share Loans................................... -- --
Automobile Loans.............................. -- --
Unsecured..................................... 3 (1)
-------- -----
Allowance balances (at end of period).......... $ 115 $ 39
======== =====
Allowance for loan losses as a percent of
total loans outstanding......................... 1.19% 0.40%
Net loans charged off as percent of average
loans outstanding............................... 0% 0%
</TABLE>
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, and (iv) 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 December 31,
1997,
41
<PAGE>
our investment portfolio policy allowed 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, and (viii) investment
grade corporate bonds, commercial paper and mortgage derivative products. See
"-- Mortgage-backed Securities." The board of directors may authorize additional
investments.
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 Federal Home Loan Mortgage Corporation ("FHLMC"),
Government National Mortgage Association ("GNMA"), and Federal National Mortgage
Association ("FNMA.")
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. 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. See "Risk
Factors Potential Impact of Changes in Interest Rates and the Current Interest
Rate Environment." Mortgage-backed securities issued by FHLMC and GNMA make up a
majority of the pass-through certificates market.
42
<PAGE>
Securities Portfolio. The following table sets forth the carrying
(i.e., amortized cost) value of our investment securities held to maturity, at
the dates indicated. Our securities portfolio classified as available for sale
is carried at market value.
<TABLE>
<CAPTION>
At December 31,
----------------------------
1997 1996
--------- ----------
(In thousands)
<S> <C> <C>
Securities held to maturity:
U.S. Government Securities........................... $ - $ -
U.S. Agency Securities............................... 300 550
State and Local Government........................... 614 714
Other Debt securities................................ -- 199
Mortgage-backed Securities held to maturity.......... 1,721 2,014
----- ------
^ Total Securities Held to Maturity............. ^ 2,635 3,477
------- ------
Securities Available for Sale:
U.S. Government Securities.......................... 204 389
U.S. Agency Securities.............................. 810 199
Federal funds Sold.................................. -- --
Other Debt securities............................... ^ 602 99
FHLB Stock.......................................... -- --
Mortgage-backed Securities Available for sale....... 907 --
------ --------
Total Securities Available for Sale............. ^ 2,523 687
------- --------
Total Investment and Mortgage-Backed Securities. $ 5,158 $ 4,164
====== ========
</TABLE>
43
<PAGE>
The following table sets forth information regarding the scheduled
maturities, carrying values, approximate fair values, and weighted average
yields for our investment and mortgage-backed securities portfolio at December
31, 1997 by contractual maturity. The following table does not take into
consideration the effects of scheduled repayments or the effects of possible
prepayments.
<TABLE>
<CAPTION>
As of December 31, 1997
----------------------------------------------------------------------------------------------------
Total Investment
More than More than Securities and Mortgage-
One Year or Less One to Five Years Five to Ten Years More than Ten Years backed Securities
---------------- ----------------- ----------------- ------------------- ------------------------
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>
Investments securities
U.S. Government Securities.... $ -- --% $ -- --% $ 100 5.75% $ 104 6.25% $ 204 6.00% $ 204
U.S. Agency Securities........ -- -- 100 5.67 700 6.91 310 8.15 1,110 7.14 1,108
State and Local Government.... 25 4.10 90 4.33 499 4.93 -- -- 614 4.81 624
Other Securities.............. 503 5.86 -- -- -- -- -- -- 503 5.86 503
--- ----- ---- ---- ----- -----
Total investment securities. 528 190 -- 1,299 -- 414 2,431 2,439
Interest-bearing Deposits....... -- -- -- -- 99 7.30 -- -- ^99 7.30 99
Federal Funds Sold.............. -- -- -- -- -- -- -- -- -- -- --
FHL Stock -- -- -- -- --
Mortgage-backed Securities...... -- -- -- -- 241 7.10 ^2,387 6.66 2,628 6.70 2,651
---- ------ ------ ---- ----- ------ ----- ---- ----- ------ -----
Total investment............. $528 5.78% $ 190 5.04% $1,639 6.29% $2,801 6.81% $5,158 6.47% $5,189
==== ====== ====== ==== ===== ====== ===== ==== ===== ===== =====
</TABLE>
44
<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, to a much lesser extent, 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 passbook savings accounts, money market accounts,
and term certificate accounts. IRA accounts and NOW accounts are also offered.
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.
At December 31, 1997, we had no brokered deposits and our deposits were
represented by the following types of savings programs.
<TABLE>
<CAPTION>
Minimum Balance as of Percentage
Interest Balance December 31, of Total
Category Term Rate(1) Amount 1997 Deposits
- -------- ---- ------- ------ ---- --------
(Dollars in
thousands)
<S> <C> <C> <C> <C> <C>
Accounts:
NOW None 1.50% $ 500 $1,031 6.79%
Passbook savings None 2.25 100 1,098 7.23
Premium passbook savings None 2.50 1,000 2,264 14.92
Passbook savings club None 1.75 -- 14 0.09
Noninterest-bearing None -- 100 546 3.60
Certificates of Deposit(2):
Fixed Term, Fixed Rate 1-3 months -- -- -- --
Fixed Term, Fixed Rate 4-6 months 4.50 1,000 1,380 9.09
Fixed Term, Fixed Rate 7-12 months 5.25 500 1,771 11.67
Fixed Term, Fixed Rate 13-24 months 5.25 500 3,557 23.43
Fixed Term, Fixed Rate 25-36 months 5.25 500 698 4.60
Fixed Term, Fixed Rate 37-48 months 5.50 500 80 0 .53
Fixed Term, Fixed Rate 49-120 months 6.00 500 2,739 18.05
------ ------
Total $15,178 100.00%
====== ======
</TABLE>
- ---------------
(1) Current interest rate offering as of December 31, 1997.
(2) Includes jumbo certificates of deposit of $1.4 million. See table of
maturities of certificates of deposit of $100,000 or more.
45
<PAGE>
The following table sets forth our time deposits classified by interest
rate as of the dates indicated.
As of December 31,
-----------------------------
1997 1996
-------- -------
(In thousands)
Interest Rate
2.00% or less $ -- $ --
2.01 - 4.00% -- 28
4.01 - 6.00 5,146 5,282
6.01 - 8.00 4,978 3,617
8.01 - 10.00 101 140
10.01 or more -- --
------ ------
Total $10,225 $9,067
====== =====
The following table sets forth amount and maturities of time deposits
at December 31, 1997.
<TABLE>
<CAPTION>
Amount Due
After
December 31, December 31, December 31, December 31,
Interest Rate 1998 1999 2000 2000 Total
- ------------- ----------------- ------------------- ------------------ ------------------- ------------------
(In thousands)
<S> <C> <C> <C> <C> <C>
4.00% or less $ - $ - $ - $ - $ -
4.01 - 6.00% 3,194 408 537 323 4,462
6.01 - 8.00% 554 3,051 772 1,133 5,510
8.01 - 10.00% 9 78 -- 166 253
------- ------- ------ -------- -------
Total $ 3,757 $ 3,537 $ 1,309 $ 1,622 $10,225
======= ======= ====== ======== ======
</TABLE>
The following table indicates the amount of our certificates of deposit
of $100,000 or more by time remaining until maturity as of December 31, 1997.
Certificates
Maturity Period of Deposits
- --------------- -----------
(In thousands)
Within three months $ 419
Three through six months 100
Six through twelve months 200
Over twelve months 722
-----
$1,441
=====
Borrowings. Advances (borrowing) may be obtained from the FHLB of
Pittsburgh to supplement our supply of lendable funds. Advances from the FHLB of
Pittsburgh are typically secured by a pledge of our stock in the FHLB of
Pittsburgh, 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 expect to become a member of the FHLB of Pittsburgh as
part of the Conversion and will be able to borrow up to the amount set by the
FHLB of Pittsburgh. 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 December 31, 1997, we were not a member of
and had no borrowings from the FHLB of Pittsburgh.
46
<PAGE>
At December 31, 1997 and 1996, we had an available line of credit in
the amount of $500,000. The outstanding balance on the line of credit at
December 31, 1997 and 1996 was $0 and $300,000, respectively. The line of credit
is payable upon demand and bears interest at a rate of prime plus 1.25%. In
addition, pursuant to the terms of the line of credit agreement, in order for us
to borrow any funds we are required to maintain a certificate of deposit at the
lending institution; as of December 31, 1997 and 1996, this certificate of
deposit was $100,000.
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, most of whom have far greater resources than we have.
Properties
We operate from one office, which we own, located at 17 West Mall
Plaza, Carnegie, Pennsylvania ^. The office was acquired in 1986 and has a net
book value at December 31, 1997 of $144,000.
Personnel
At December 31, 1997 we had six full-time employees. 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 currently 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.
Carnegie Financial Corporation Regulation
General. CFC 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 CFC 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 CFC.
QTL Test. Since CFC will only own one savings institution, it will be
able to diversify its operations into activities not related to banking, but
only as long as we satisfy the QTL test. If CFC controls more than one savings
institution, it would lose the ability to diversify its operations into
non-banking 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."
47
<PAGE>
Restrictions on Acquisitions. CFC must obtain approval from the OTS
before acquiring control of any other FDIC-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, BIF-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.
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 BIF and depositors.
The regulatory structure also gives 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
such as ours were substantially less than premiums for deposits 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 September 30, 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.
48
<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 $.0125 per $100 of deposits in 1998. SAIF assessments for
healthy savings institutions in 1998 will be approximately $.0628 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 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 federal 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.
The risk-based capital standards of the OTS generally require federal
savings institutions with more than a "normal" level of interest rate risk to
maintain additional total capital. An institution's interest rate
49
<PAGE>
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 federal 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 based on data submitted by the institution in a schedule to its quarterly
Thrift Financial Report and using 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. Federal
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. However, 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
will require us to give the OTS 30 days advance notice of any proposed
declaration of dividends to CFC, and the OTS has the authority under its
supervisory powers to prohibit the payment of dividends by us to CFC. 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 Carnegie Savings Bank -- Liquidation Account."
OTS regulations impose limitations upon all capital distributions by
federal 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. We expect
to qualify as a Tier 1 institution.
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
50
<PAGE>
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.
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 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
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. The OTS proposed limitations on
capital distributions are similar to the limitations imposed upon national
banks. We are unable to predict whether or when the proposed regulation will
become effective.
A federal 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 federal savings institution cannot distribute
regulatory capital that is needed for its liquidation account.
Qualified Thrift Lender Test. Federal 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 have full borrowing privileges from the FHLB
of Pittsburgh. 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, federal 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. We are not yet subject to the
QTL requirements.
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 specified amounts must usually be provided
by affiliates in order to receive loans from the savings institution. Our
affiliates include CFC 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.
51
<PAGE>
Liquidity Requirements. All federal 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. 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
Pittsburgh, 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 Pittsburgh 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. We are 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 System. The Federal Reserve System 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 System may be used
to satisfy the liquidity requirements that are imposed by the OTS.
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.
52
<PAGE>
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.
Thrift institutions with $500 million of assets or less are generally allowed to
account for their bad debts by using a reserve method of accounting under Code
ss.585. Alternatively, thrift institutions may choose to account for their bad
debts by using the specific charge off method under Code ss.166. In the past,
due to certain State law restrictions which no longer apply to us, we have
accounted for our bad debts using the specific charge off method. Currently, we
are reviewing the benefits, if any, of changing our method of accounting for our
bad debts to the reserve method of accounting.
We are not currently required by the Code to use the accrual method of
accounting for tax purposes. However, we are reviewing the benefits, if any, of
changing from the cash basis to the accrual method of accounting for tax
purposes to determine the most favorable method for us. Further, for taxable
years ending after 1986, the Code disallows 100% of a savings institution's
interest expense deemed allocated to certain tax-exempt obligations acquired
after August 7, 1986. Interest expense allocable to (i) tax-exempt obligations
acquired after August 7, 1986 which are not subject to this rule, and (ii)
tax-exempt obligations issued after 1982 but before August 8, 1986, are subject
to the rule which applied prior to the Code disallowing the deductibility of 20%
of the interest expense.
The Code imposes a tax ("AMT") on 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 December 31, 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.
CFC 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 CFC owns more than 20% of the stock of a
corporation paying a dividend. The above exclusion amounts, with the exception
of the affiliated group figure, were reduced in years in which we availed
ourself of the percentage of taxable income bad debt deduction method.
Our federal income tax returns have not been audited by the IRS since
our fiscal year ended December 31, 1993. As a result of the audit, there was no
material effect to our financial statements.
State Taxation
We are subject to the Mutual Thrift Institutions Tax of the
Commonwealth of Pennsylvania based on our financial net income determined in
accordance with generally accepted accounting principles with certain
adjustments. Our tax rate under the Mutual Thrift Institutions Tax is 11.5%.
Interest on state
53
<PAGE>
and federal obligations is excluded from net income. An allocable portion of net
interest expense incurred to carry the obligations is disallowed as a deduction.
Three year carryforwards of losses are allowed.
Upon consummation of the conversion, we will also be subject to the
Corporate Net Income Tax and the Capital Stock Tax of the Commonwealth of
Pennsylvania.
MANAGEMENT OF CARNEGIE FINANCIAL CORPORATION
CFC board of directors consists of the same individuals who serve as
directors of Carnegie Savings Bank. The articles of incorporation and bylaws of
CFC require that directors be divided into four classes, as nearly equal in
number as possible. Each class of directors serves for a four-year period, with
approximately one-fourth of the directors elected each year. The officers of CFC
will be elected annually by the board and serve at the board's discretion. Such
officers are also officers of Carnegie Savings Bank.
See "Management of Carnegie Savings Bank."
MANAGEMENT OF CARNEGIE SAVINGS BANK
Directors and Executive Officers
Our board of directors is composed of five members each of whom serves
for a term of three years, with approximately one-third of the directors elected
each year. Our proposed stock charter and bylaws require that directors be
divided into four classes, as nearly equal in number as possible. Our officers
are elected annually by our board and serve at the board's discretion.
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.
<TABLE>
<CAPTION>
Age at Current
December 31, Director Term
Directors 1997 Position Since Expires(1)
- --------- ------------------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Shirley Chiesa 60 Chairman of the Board, 1972 1999
President and C.E.O.
Morry Miller 61 Director 1985 2000
JoAnn V. Narduzzi 60 Director 1988 2000
Charles Rupprecht 61 Director 1979 1998
Lois A. Wholey 42 Director and Secretary 1986 1998
Joseph R. Pigoni 34 Executive Vice President N/A N/A
and Chief Financial
Officer
</TABLE>
- -------------------
(1) The terms for directors of CFC are the same as those of Carnegie
Savings Bank except that Lois A. Wholey's term will expire in 2001.
The business experience for the past five years of each of the
directors and executive officers is as follows:
Shirley Chiesa has been a member of the Board since 1972 and the Chairman
since 1980. Ms. Chiesa has been employed by the Carnegie Savings Bank since 1955
and is currently the President and
54
<PAGE>
Chief Executive Officer. She is a director of the Western Pennsylvania League of
Financial Institutions. She is Vice-Chairman of the Chartiers Boys and Girls
Club, is the past president and current secretary of the Carnegie Lions Club and
is on the advisory board of the Carnegie Historical Society.
Morry Miller has been a member of the Board since 1985. Mr. Miller is the
President of Izzy Miller Furniture Company. He is a past board member of the
Salvation Army and the Greater Pittsburgh Guild for the Blind.
JoAnn V. Narduzzi has been a member of the Board since 1988. Dr. Narduzzi
is the Hospital Physician Administrator with the Pittsburgh Mercy Health System.
She is on the board of the Pittsburgh Care Partnership and is the Proclaimer of
Word at the St. Thomas More Church.
Charles Rupprecht has been a member of the Board since 1979. Mr. Rupprecht
is the Transportation Supervisor at the Calgon Carbon Corp.
Lois A. Wholey has been a member of the Board since 1986 and is the
Secretary of Carnegie Savings Bank. Ms. Wholey is an attorney and the owner of
Lois Wholey and Associates. She is a member of the board of the Children's
Festival Chorus and the Society for Contemporary Crafts.
Joseph R. Pigoni has been Executive Vice President since December 1997
and Chief Financial Officer since May 1997. Prior to that time he was Assistant
Vice President and Controller of ESB Bank and PennFirst Bancorp, Inc. from
August 1995 to March 1997 and Controller of Mt. Troy Savings Bank from June 1990
to July 1995. He is Vice President of the Pittsburgh chapter 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 December
31, 1997, the board of directors held 12 regular meetings. No director attended
fewer than 75% of the total meetings of the board of directors and committees on
which such director served during the year ended December 31, 1997.
Director Compensation
^ During 1997, each director was paid a fee of $300 for each Board
meeting attended. Beginning in January 1998, each director will be paid a fee of
$400 per Board meeting attended. The total fees paid to the directors for the
year ended December 31, 1997 were $19,800. Directors are not paid a fee for
attending committee meetings nor will they be paid a fee for attending CFC Board
meetings.
Directors Consultant and Retirement Plan ("DRP"). The DRP provides
retirement benefits to directors following retirement after age 60 and
completion of at least 10 years of service. If a director agrees to become a
consulting director to our board upon retirement, he or she will receive a
monthly payment equal to 80% of the Board fee in effect at the date of
retirement for a period of 120 months. 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 10 years of service and each director
will receive a lump sum payment equal to the present value of future benefits
payable.
55
<PAGE>
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
December 31, 1997. No employee earned in excess of $100,000 for the year ended
December 31, 1997.
<TABLE>
<CAPTION>
Annual Compensation
--------------------------------------------------
Other Annual All other
Compensation Compensation
Name and Principal Position Year Salary Bonus (1) ($)(2)
- --------------------------- ---- ------ ----- ----- -------
<S> <C> <C> <C> <C> <C>
Shirley Chiesa, President 1997 $72,500 $15,000 $3,600 $8,750
1996 $72,500 $10,000 $3,000 $8,250
1995 $72,500 $10,000 $2,400 $8,250
</TABLE>
- --------------------
(1) Consists of director fees.
(2) Includes contributions of $8,250 representing 10% of compensation to
Simplified Employees Pension.
Employment Agreement. We have entered into an employment agreement with
our President, Ms. Shirley Chiesa. Ms. Chiesa's base salary under the employment
agreement is $75,000. The employment agreement has a term of three years
beginning January 1, 1998. The agreement is terminable by us for "just cause" as
defined in the agreement. If we terminate Ms. Chiesa without just cause, Ms.
Chiesa will be entitled to a continuation of her salary from the date of
termination through the remaining term of the agreement. 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, Ms. Chiesa will be
paid a lump sum amount equal to 2.99 times her five year average annual taxable
cash compensation. If such payments had been made under the agreement as of
December 31, 1997, such payments would have equaled approximately $246,435. The
aggregate payments that would have been made to Ms. Chiesa 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 Ms. Chiesa
shall become disabled during the term of the agreement, she 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.
Retirement Plan. Our Simplified Employee Pension Plan ("SEP") provides for
an annual contribution at the discretion of our directors of up to 15% of the
eligible employee's compensation. In 1997, our SEP expenses were $15,000.
Supplemental Executive Retirement Plan. We have implemented a
supplemental executive retirement plan ("SERP") for the benefit of our
President, Shirley Chiesa. The SERP provides that Ms. Chiesa may receive
additional retirement income in addition to the value of her SERP account,
provided she remains employed until not less than age 65 and has completed not
less than 25 years of service. Benefits payable under the SERP will equal
approximately $3,300 per month for a period of 120 months. Upon a termination of
employment following a change in control, Ms. Chiesa will be presumed to have
attained not less than the minimum retirement age under the SERP. Payments under
the SERP will be accrued for financial reporting purposes during the period of
employment of Ms. Chiesa. At December 31, 1997, approximately $35,580 has been
accrued and recognized as an expense. The SERP shall be unfunded.
56
<PAGE>
All benefits payable under the SERP will be paid from our current assets. There
are no tax consequences to either Ms. Chiesa or us related to the SERP prior to
payment of benefits. Upon receipt of payment of benefits, Ms. Chiesa 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 or our
subsidiary 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 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., 14,400 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 $14,400 annually (based on a
$144,000 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 207,000
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 the 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.
57
<PAGE>
Proposed Future Stock Benefit Plans
Stock Option Plan. Our board of directors intends to adopt a stock
option plan (the Option Plan) following the conversion, subject to approval by
CFC'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., 18,000 shares based upon the
sale of 180,000 shares at the midpoint of the EVR) would be reserved for
issuance by CFC upon exercise of stock options to be granted 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 CFC. Under the OTS regulations, the Option Plan,
would provide that options awarded 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.
CFC 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. Shares issued as a result
of the exercise of options will be either authorized but unissued shares,
treasury shares, or shares purchased in the open market by CFC. The exercise of
options and payment for the shares received would contribute to the equity of
CFC.
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. Our board of directors intends 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. CFC 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 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 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. 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, treasury shares or would be purchased in the
open market. In the event the market price of the common stock is greater than
$10.00 per share, our contribution of funds will be increased. Likewise, in the
event the market price is lower than $10.00 per share, our contribution will be
decreased. In recognition of their prior and expected services to us and CFC, as
the
58
<PAGE>
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 180,000 shares of common stock in the offering at the
midpoint of the EVR, the RSP Trust is expected to purchase up to 7,200 shares of
common stock. 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 CFC'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.
RESTRICTIONS ON ACQUISITIONS OF CARNEGIE FINANCIAL CORPORATION
While the board of directors is not aware of any effort that might be
made to obtain control of CFC after conversion, the board of directors believes
that it is appropriate to include certain provisions as part of CFC's articles
of incorporation to protect the interests of CFC and its stockholders from
hostile takeovers ("anti-takeover"provisions) which the board of directors might
conclude are not in the best interests of us or 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 an opportunity to do so. Such provisions will also render the removal
of the current board of directors or management of CFC more difficult.
The following discussion is a general summary of the material
provisions of the articles of incorporation, bylaws, and certain other
regulatory provisions of CFC, 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 articles of incorporation and bylaws of CFC
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.
59
<PAGE>
Provisions of CFC Articles of Incorporation and Bylaws
Limitations on Voting Rights. The articles of incorporation of CFC
provide that for a period of five years from completion of the conversion, in no
event shall any record owner of any outstanding equity security which is
beneficially owned, directly or indirectly, by a person who beneficially owns in
excess of 10% of any class of equity security outstanding (the "Limit") be
entitled or permitted to any vote in respect of the shares held in excess of the
Limit. The number of votes which may be cast by any record owner who
beneficially owned shares in excess of the Limit shall be a number equal to the
total number of votes which a single record owner of all common stock owned by
such person would be entitled to cast, multiplied by a fraction, the numerator
of which is the number of shares of such class or series which are both
beneficially owned by such person and owned of record by such record owner and
the denominator of which is the total number of shares of common stock
beneficially owned by such person owning shares 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 CFC.
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 beneficial nor record 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 articles of incorporation of CFC further
provide that this provision limiting voting rights may only be amended upon the
vote of a majority of the outstanding shares of voting stock.
Election of Directors. Certain provisions of CFC's articles of
incorporation and bylaws will impede changes in majority control of the board of
directors. CFC's articles of incorporation provide that the board of directors
of CFC will be divided into four staggered classes, with directors in each class
elected for four-year terms. Thus, it would take three annual elections to
replace a majority of CFC's board. CFC's articles of incorporation provide that
the size of the board of directors may be increased or decreased only if
two-thirds of the directors then in office concur in such action. The articles
of incorporation also provide that any vacancy occurring in the board of
directors, including a vacancy created by an increase in the number of
directors, shall be filled for the remainder of the unexpired term by a majority
vote of the directors then in office. 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 articles of incorporation provide that a director may only be
removed for cause by the affirmative vote of at least a majority of the shares
of CFC entitled to vote generally in an election of directors cast at a meeting
of stockholders called for that purpose.
60
<PAGE>
Restrictions on Call of Special Meetings. The articles of incorporation
of CFC provide that a special meeting of stockholders may be called only
pursuant to a resolution adopted by a majority of the board of directors.
Absence of Cumulative Voting. CFC's articles of incorporation provide that
stockholders may not cumulate their votes in the election of directors.
Authorized Shares. The articles of incorporation authorizes the issuance of
4,000,000 shares of common stock and 2,000,000 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 CFC'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 CFC. 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 articles of
incorporation require the affirmative vote of at least 80% of the outstanding
shares of CFC entitled to vote in the election of directors in order for CFC to
engage in or enter into certain "Business Combinations," as defined therein,
with any Principal Shareholder (as defined below) or any affiliates of the
Principal Shareholder, unless the proposed transaction has been approved in
advance by CFC's board of directors, excluding those who were not directors
prior to the time the Principal Shareholder became the Principal Shareholder.
The term "Principal Shareholder" is defined to include any person and the
affiliates and associates of the person (other than CFC or its subsidiary) who
beneficially owns, directly or indirectly, 20% or more of the outstanding shares
of voting stock of CFC. Any amendment to this provision requires the affirmative
vote of at least 80% of the shares of CFC entitled to vote generally in an
election of directors.
Amendment to Articles of Incorporation and Bylaws. Amendments to CFC's
articles of incorporation must be approved by CFC's board of directors and also
by a majority of the outstanding shares of CFC's voting stock, provided,
however, that approval by at least 80% of the outstanding voting stock is
generally 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 articles of incorporation).
The bylaws may be amended by a majority vote of the board of directors
or the affirmative vote of the holders of at least 80% of the outstanding shares
of CFC entitled to vote in the election of directors cast at a meeting called
for that purpose.
Benefit Plans. In addition to the provisions of CFC's articles of
incorporation and bylaws described above, certain benefit plans of ours adopted
in connection with the conversion contain provisions which also may discourage
hostile takeover attempts which the boards of directors might conclude are not
in the best interests for us or our stockholders. For a description of the
benefit plans and the provisions of such plans relating to changes in control,
see "Management of Carnegie Savings Bank -- Proposed Future Stock Benefit
Plans."
61
<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 their exercise. 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
CFC is authorized to issue 4,000,000 shares of the common stock, $0.10
par value per share, and 2,000,000 shares of serial preferred stock, no par
value per share. CFC currently expects to issue up to 207,000 shares of common
stock in the conversion. CFC 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 CFC. The balance of the purchase
price will be recorded for accounting purposes as additional paid-in capital.
See "Capitalization." The capital stock of CFC will represent nonwithdrawable
capital and will not be insured by us, the FDIC, or any other government 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 CFC, except to the extent that shares of serial preferred stock issued
in the future may have voting rights, if any. Each holder of the common stock
will be entitled to only one vote for each share held of record on all matters
submitted to a vote of holders of the common stock and will not be permitted to
cumulate their votes in the election of CFC's directors.
62
<PAGE>
Liquidation. In the unlikely event of the complete liquidation or
dissolution of CFC, the holders of the common stock will be entitled to receive
all assets of CFC available for distribution in cash or in kind, after payment
or provision for payment of (i) all debts and liabilities of CFC; (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 "Certain
Restrictions on Acquisition of CFC" 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. Therefore, the board of directors may sell shares of
capital stock of CFC without first offering such shares to existing stockholders
of CFC. The common stock is not subject to call for redemption, and the
outstanding shares of common stock when issued and upon receipt by CFC of the
full purchase price therefor will be fully paid and non-assessable.
Issuance of Additional Shares. Except in the subscription offering, or,
if any, the community offering or public or syndicated public offering and
possibly pursuant to the RSP or Stock Option Plan, the CFC 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
Carnegie Financial Corporation" for information regarding restrictions on
acquiring common stock of CFC.
Serial Preferred Stock
None of the 2,000,000 authorized shares of serial preferred stock of
CFC will be issued in the conversion. After the conversion is completed, the
board of directors of CFC 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.
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 Capital
Resources, Inc. may be passed upon by Steele, Silcox & Browning, P.C.,
Washington, D.C. The federal and state income tax consequences of the
63
<PAGE>
conversion have been passed upon for us by Malizia, Spidi, Sloane & Fisch, P.C.,
Washington, D.C.
EXPERTS
The financial statements of Carnegie Savings Bank as of and for the
years ended December 31, 1997 and 1996 appearing in this document have been
audited by Goff Ellenbogen Backa & Alfera, LLC, independent certified public
accountants, as set forth in their report which appears elsewhere in this
document, and is included in reliance upon such report given upon the authority
of such firm as experts in accounting and auditing.
FinPro, Inc. has consented to the publication herein of a summary of
its letters to Carnegie Savings Bank setting forth its opinion as to the
estimated pro forma market value of us in the converted form and its opinion
setting forth the value of subscription rights and to the use of its name and
statements with respect to it appearing in this document.
REGISTRATION REQUIREMENTS
The common stock of CFC will be registered pursuant to Section 12(g) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") prior to
completion of the conversion. CFC 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. CFC 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
CFC and Carnegie Savings Bank are not currently subject to the
informational requirements of the Exchange Act.
CFC 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; each such statement is qualified by reference to
such contract or document.
Carnegie 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, 1700 G Street,
N.W., Washington, D.C. 20552 and at the Northeast Regional Office of the OTS, 10
Exchange Place, Jersey City, New Jersey 07302, without charge.
A copy of the Articles of Incorporation and the Bylaws of CFC are
available without charge from Carnegie Savings Bank.
64
<PAGE>
Carnegie Savings Bank
Index to Financial Statements
Page
----
Independent Auditors' Report........................................... F-2
Statements of Condition................................................ F-3
Statements of Operations............................................... 25
Statements of Changes in Retained Earnings............................. F-4
Statements of Cash Flows............................................... F-5
Notes to Financial Statements.......................................... ^F-6
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 CFC have not been included since it will not
engage in material transactions until after the conversion. CFC, which has been
inactive to date, has no significant assets, liabilities, revenues, expenses or
contingent liabilities.
F-1
<PAGE>
Goff
Ellenbogen
Backa & Alfera, LLC
- ---------------------------
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Board of Trustees
Carnegie Savings Bank
Carnegie, Pennsylvania
We have audited the accompanying statements of condition of Carnegie Savings
Bank as of December 31, 1997 and 1996, and the related statements of operations,
changes in retained earnings, and cash flows for the years then ended. These
financial statements are the representation of the Bank's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we 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.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Carnegie Savings Bank as of
December 31, 1997 and 1996, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
/s/Goff Ellenbogen Backa & Alfera, LLC.
- ---------------------------------------
GOFF ELLENBOGEN BACKA & ALFERA, LLC.
Pittsburgh, Pennsylvania
February 17, 1998
[LOGO]
-------------------------
South Hills Office:
3325 Saw Mill Run Blvd.
Pittsburgh, PA 15227-2736
412/885-5045
412/885-4870 Fax
Edgewood Office:
640 Allenby Avenue
Pittsburgh, PA 15218-1363
412/731-1500
412/731-9620 Fax
- ----------------------------
Member: American and Pennslyvania Institutes of Certified Public Accountants,
AICPA Private Companies and SEC Practice Sections.
An affiliate of INPACT International.
F-2
<PAGE>
Carnegie Savings Bank
Statements of Condition
December 31,
<TABLE>
<CAPTION>
Note 1997 1996
-----------------------------------------------
ASSETS
------
<S> <C> <C> <C>
Cash and cash equivalents 1 $ 850,891 $ 556,658
Certificates of deposits with other banks 1;6 100,000 100,000
Investment securities available for sale, net 1;2 ^ 1,615,685 687,312
Investment securities held to maturity, net (market
value of $922,716 and $1,453,244) 1;2 ^ 913,903 1,462,353
Mortgage-backed securities available for sale, net 1;2 906,869 -
Mortgage-backed securities held to maturity, net
(market value of $1,744,014 and $2,030,225) 1;2 1,721,250 2,013,551
Loans receivable (net of allowance for loan
losses of $114,832 and $39,144) 1;3 9,585,360 9,811,840
Accrued interest receivable 1 107,361 101,244
Property and equipment, net 1;4 184,878 188,910
Real estate owned 1 480,326 166,570
Deferred tax asset 1;7 92,700 -
Other assets 1 164,245 11,831
----------------- ------------------
Total assets $ 16,723,468 $ 15,100,269
================= ==================
LIABILITIES AND RETAINED EARNINGS
---------------------------------
Deposits 1;5 $ 15,177,917 $ 13,377,825
Line of credit 6 - 300,000
Advance payments by borrowers for taxes
and insurance 143,129 158,770
Deferred income taxes 1;7 33,698 13,400
Accrued income taxes payable 1;7 6,316 20,600
Other liabilities 8 192,363 34,000
----------------- ------------------
Total liabilities 15,553,423 13,904,595
Commitments and contingencies 12 - -
Unrealized gains (losses) on securities
available-for-sale, net of tax of
($7,036) and $2,087 1;2 13,658 ( 14,514)
Retained earnings (Substantially restricted) 1,156,387 1,210,188
----------------- ------------------
Total retained earnings 1,170,045 1,195,674
----------------- ------------------
Total liabilities and retained earnings $ 16,723,468 $ 15,100,269
================= ==================
</TABLE>
See Independent Auditor's Report and Notes to Financial Statements.
F-3
<PAGE>
Carnegie Savings Bank
Statement of Changes in Retained Earnings
December 31,
<TABLE>
<CAPTION>
Unrealized
Gain (Loss)
on Securities
Available
Retained for Sale,
Earnings Net of Taxes Total
-------- ------------ -----
<S> <C> <C> <C>
Balance, December 31, 1995 $1,110,769 $ ( 1,805) $1,108,964
Net income 99,419 - 99,419
Change in net unrealized gains/(losses)
AFS investment securities - ( 12,709) ( 12,709)
---------- ------------ ----------
Balance, December 31, 1996 1,210,188 ( 14,514) 1,195,674
Net loss (53,801) - ( 53,801)
Change in net unrealized gains/(losses)
on AFS investment securities - 28,172 28,172
---------- ------------ ----------
Balance, December 31, 1997 $1,156,387 $ 13,658 $1,170,045
========== ============ ==========
</TABLE>
See Independent Auditor's Report and Notes to Financial Statements.
F-4
<PAGE>
Carnegie Savings Bank
Statements of Cash Flows
December 31,
<TABLE>
<CAPTION>
1997 1996
------------------ -- ------------------
<S> <C> <C>
Cash flows from operations:
Net income (loss) $ ( 53,801) $ 99,419
Adjustments to reconcile net income (loss) to
net cash provided (used) by operations:
Depreciation and amortization 21,057 20,870
Provision for loan losses 73,000 2,203
Deferred income taxes ( 72,402) ( 900)
Net amortization of premiums/discounts ( 10,811) 1,470
Gain on sale of real estate owned ( 13,693) -
(Gain) loss on sale of securities ( 1,677) ( 7,733)
Increase (decrease) in cash due to changes in assets and liabilities:
Accrued interest receivable ( 6,117) ( 13,402)
Other assets ( 152,414) 52,413
Income tax liabilities ( 14,284) 20,600
Other liabilities 158,363 ( 219)
------------------ ------------------
Net cash provided (used) by operations ( 72,779) 174,721
------------------ ------------------
Cash flows from investing securities: Investment securities available for sale:
Proceeds from sales and maturities 646,313 500,363
Purchases ( 1,574,686) ( 691,436)
Investment securities held to maturity:
Proceeds from maturities and repayments 548,450 20,000
Purchases ^ - ( 298,639)
Mortgage-backed securities available for sale:
Purchases ( 1,053,921) -
Maturities and repayments 167,304 -
Mortgage-backed securities held to maturity:
Purchases - ( 1,247,113)
Maturities and repayments 291,936 213,570
Net (increase) decrease in loans receivable 344,516 ( 810,198)
Proceeds from sale of real estate owned 10,000 -
Investment in real estate owned ( 480,326) -
Purchase of equipment ( 17,025) ( 6,781)
------------------ ------------------
Net cash used by investing activities (1,117,439) ( 2,320,234)
------------------ ------------------
Cash flows from financing activities:
Advances from borrowers for taxes and insurance ( 15,641) ( 10,939)
Net increase in deposits 1,800,092 970,638
Net increase (decrease) in line of credit ( 300,000) 300,000
------------------ ------------------
Net cash provided by financing activities 1,484,451 1,259,699
------------------ ------------------
Net increase (decrease) in cash 294,233 ( 885,814)
Cash, beginning of year 656,658 1,542,472
------------------ ------------------
Cash and cash equivalents, end of year $ 950,891 $ 656,658
================== ==================
( See Note 11 for Supplemental Disclosures)
</TABLE>
See Independent Auditor's Report and Notes to Financial Statements.
F-5
<PAGE>
Carnegie Savings Bank
Notes to Financial Statements
December 31, 1997 and 1996
Note 1 - Summary of Significant Accounting Policies:
- ----------------------------------------------------
Nature of operations
Carnegie Savings Bank (the "Bank") provides a variety of financial services to
individual and business customers through its one location in Carnegie,
Pennsylvania, which is a southwestern suburb of the city of Pittsburgh. The
Bank's primary deposit products are interest-bearing checking accounts, passbook
savings accounts, and certificates of deposit. It's primary lending products are
single-family residential first mortgages and consumer type loans.
Effective April 3, 1995, the Bank was successful in converting from a privately
insured Pennsylvania-chartered savings association to a FDIC insured non-member
state mutual savings bank.
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Bank to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant change
relate to the determination of the allowance for loan losses and the valuation
of real estate acquired in foreclosure or in satisfaction of loans. In
connection with the determination of the allowance for loan losses and
foreclosed real estate, the Bank obtains independent appraisals for significant
properties.
A majority of the Bank's loan portfolio consists of single-family residential
mortgage loans in the southwestern Pennsylvania area. The regional economy
depends primarily on manufacturing and service related industries. The ultimate
collectibility of the Bank's loan portfolio and the recovery of the carrying
amount of foreclosed real estate are susceptible to changes in the local market
conditions.
While the Bank uses available information to recognize losses on loans and
foreclosed real estate, future additions to the allowance for loan losses may be
necessary based on changes in local economic conditions. In addition, 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 allowances based on their
judgments about information available to them at the time of their examination.
Because of these factors, it is reasonably possible that the allowances for
losses on loans and foreclosed real estate may change materially in the near
term.
Cash equivalents
For the purpose of reporting cash flows, the Bank considers all cash and amounts
due from depository institutions, FHLB interest bearing deposits, and
certificates of deposits maturing in less than 90 days to be cash equivalents
for purposes of the statements of cash flows. As of December 31, 1997 and 1996,
the Bank had interest bearing deposits that totaled $842,138 and $540,882,
respectively.
F-6
<PAGE>
Investment securities, net including Mortgage Backed Securities
Investment securities consist primarily of various debt securities and
mortgage-backed securities which represent participating interests in pools of
long-term first mortgage loans originated and serviced by issuers of the
securities. Mortgage-backed securities are carried at unpaid principal balances,
adjusted for unamortized premiums and unearned discounts.
In May 1993, the Financial Accounting Standards Board ("FASB") issued Financial
Accounting Standard ("FAS") No. 115, "Accounting for Certain Investments in Debt
and Equity Securities." As required by FAS 115, the Bank adopted the standard
for the year beginning January 1, 1994, without an effect on the reported
operations for 1994. Pursuant to the requirements of FAS 115, the Bank
classifies all of its investments in debt and equity securities into three
categories. Securities which the Bank has a positive intent and ability to hold
to maturity are classified as held to maturity ("HTM"). Securities that are
purchased and held principally for the purpose of selling them in the near
future are classified as trading securities. All other securities that are not
within the above classifications are classified as available for sale securities
("AFS"). Unrealized gains and losses for trading securities are included in
current earnings. Unrealized gains and losses for AFS are excluded from current
earnings and reported as a separate component of retained earnings, net of tax,
until realized. Investments classified as HTM are carried at cost and adjusted
for amortization of premiums and the accretion of discounts over the term of the
investment utilizing methods that approximate the interest method. Gains and
losses on the sales of securities are recognized upon realization. Costs of
securities is recognized using the specific identification method.
Loans receivable, net
Loans are stated at unpaid principal balances, less allowance for loan losses.
The amount of origination and loan fees is not material to the financial
statements and, accordingly, the Bank recognizes these fees as revenue when they
are received.
Loans are placed on nonaccrual status when a loan is specifically determined to
be impaired or when principal or interest payments are delinquent for 90 days or
more. Any unpaid interest previously accrued on nonaccrual loans is reversed
from current interest income. Prospectively, interest income generally is not
recognized on specific impaired loans unless the likelihood of further loss is
remote. Interest payments received on such loans are applied as a reduction of
the outstanding loan principal balance. Interest income on other nonaccrual
loans is recognized only to the extent of interest payments received. As of
December 31, 1997 and 1996, the Bank did not have any impaired loans.
The allowance for loan losses is maintained at a level which, in the Bank's
judgment, is adequate to absorb credit losses inherent in the loan portfolio.
The amount of the allowance is based upon the Bank's evaluation of the
collectibility of the loan portfolio, including the nature of the portfolio,
credit concentrations, trends in historical loss experience, specific impaired
loans, and economic conditions. Allowances for impaired loans are generally
determined based on collateral values or the present value of estimated cash
flows. The allowance is increased by a provision for loan losses, which is
charged to current operations, and reduced by charge-offs, net of recoveries.
Accrued interest receivable
Accrued interest receivable consists of accrued interest on all loan types and
investment securities.
F-7
<PAGE>
Property and equipment, net
Property and equipment are recorded at cost. Depreciation expense is generally
provided on the straight-line basis for book purposes over the estimated useful
lives of the related assets which range from 5 to 31 years.
Real estate owned
Real estate property acquired through loan foreclosure, or deed in lieu thereof,
is recorded at the lower of the Bank's cost or the asset's fair value less costs
to sell (estimated net realizable value), which becomes the property's new
basis. Any write-downs based on the assets fair value at date of acquisition are
charged to the allowance for loan losses. After foreclosure, these assets are
carried at the lower of their new cost basis or fair value less cost to sell.
Costs incurred in maintaining real estate and subsequent write-downs to reflect
declines in the fair value of the property are included in net income (loss) on
real-estate owned on the statement of operations.
During the year ended December 31, 1997, the Bank sold a piece of property
previously reported as real estate owned resulting in a gain of approximately
$13,693. Additionally, during 1997 the Bank purchased a piece of property which
increased real estate owned by approximately $480,326.
Income taxes
The FASB issued FAS No. 109, "Accounting for Income Taxes," in February 1993.
The Bank adopted the provisions of FAS 109 in 1993 without effect on the
reported results of operations. Under FAS 109, an asset and liability approach
is required for financial accounting and reporting for income taxes.
Income taxes are provided for the tax effects of the transactions reported in
the financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences caused by the recognition of certain income and
expense items on the accrual basis for financial reporting purposes and cash
basis for income tax purposes. The deferred taxes also are related to
differences between the tax and financial reporting basis for AFS securities,
loans receivable, net, accrued liabilities related to supplemental retirement
programs (see Note 8), and property and equipment, net.
Other assets
Other assets at December 31, consisted primarily of the following items:
<TABLE>
<CAPTION>
1997 1996
------------------------ ------------------------
<S> <C> <C>
Prepaid expenses and deferred costs $ 15,022 $ 11,831
Income taxes receivable 8,559 -
In-transit escrow from purchase of REO 140,664 -
----------------------- ------------------------
Balance, end of year $ $
164,245 11,831
======================= ========================
</TABLE>
Reclassification of Comparative Amounts
Certain comparative account balances for prior periods have been reclassified to
conform to the current period classifications. Such classifications did not
effect net income.
F-8
<PAGE>
Note 2 - Investment securities, net including Mortgage Backed Securities:
- -------------------------------------------------------------------------
Investment securities held-to-maturity as of December 31, are as follows:
<TABLE>
<CAPTION>
1997
-----------------------------------------------------------
Gross
Amortized Unrealized
Cost Fair Value Gain (loss)
------------------- ------------------- -------------------
<S> <C> <C> <C>
State and local government $ 45,090 $ 45,281 $ 9,811
Government sponsored agencies 300,000 299,002 ( 998)
------------------- ------------------- -------------------
$ 913,903 $ 922,716 $ 8,813
=================== =================== ===================
</TABLE>
<TABLE>
<CAPTION>
1996
-----------------------------------------------------------
Gross
Amortized Unrealized
Cost Fair Value Gain (loss)
------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
State and local government $ 713,840 $ 712,327 $ ( 1,513)
Government sponsored agencies 549,708 543,842 ( 5,866)
Privately issued debt securities 198,805 197,075 ^ ( 1,730)
------------------- ------------------- -------------------
$ 1,462,353 $ 1,453,244 $ ^ ( 9,109)
=================== =================== ===================
</TABLE>
Securities available-for-sale consist of the following as of December 31,:
<TABLE>
<CAPTION>
1997
-----------------------------------------------------------
Gross
Amortized Unrealized
Cost Fair Value Gain (loss)
------------------- ------------------- -------------------
<S> <C> <C> <C>
U.S. Securities $ 204,645 $ 204,328 $ ( 317)
Government sponsored agencies 808,704 809,366 662
Privately issued debt securities 601,991 601,991 -
------------------- ------------------- -------------------
$ 1,615,340 $ 1,615,685 $ 345
=================== =================== ===================
</TABLE>
<TABLE>
<CAPTION>
1996
-----------------------------------------------------------
Gross
Amortized Unrealized
Cost Fair Value Gain (loss)
------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
U.S. Securities $ 405,179 $ 389,125 $ ( 16,054)
Government sponsored agencies 199,734 199,187 ( 547)
Privately issued debt securities 99,000 99,000 -
------------------- ------------------- -------------------
$ 703,913 $ 687,312 $ ( 16,601)
=================== =================== ===================
</TABLE>
F-9
<PAGE>
The following is a summary of maturities of investment securities
held-to-maturity and available-for-sale as of December 31, 1997:
<TABLE>
<CAPTION>
HTM AFS
-------------------------------- -------------------------------
Amortized Fair Amortized Fair
Cost Value Cost Value
--------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
One year or less $ ^ 45,090 $ ^ 45,281 $ $ -
After one year through five years 170,011 169,798 - -
After five years through ten years 698,802 707,637 699,342 699,899
After ten years - - 413,007 412,795
--------------- ---------------- --------------- ---------------
$ ^ 913,903 $ ^ 922,716 $ 1,112,349 $ 1,112,694
=============== ================ =============== ===============
</TABLE>
Mortgage-backed securities consisted of the following at December 31, :
<TABLE>
<CAPTION>
1997
-----------------------------------------------------------
Gross
Amortized Unrealized
Cost Fair Value Gain (loss)
------------------- ------------------- -------------------
<S> <C> <C> <C>
Held-to-maturity:
- -----------------
GNMA $ 1,630,734 $ 1,656,280 $
25,546
FNMA 42,286 41,508 ( 778)
FHLMC 48,230 46,226 ( 2,004)
------------------- ------------------- -------------------
$ 1,721,250 $ 1,744,014 $ 22,764
=================== =================== ===================
Available-for-sale:
- -------------------
GNMA $ 210,083 $ 211,437 $ 1,354
FNMA 337,352 344,610 7,258
FHLMC 208,816 216,347 7,531
Privately issued 130,269 134,475 4,206
------------------- ------------------- -------------------
$ 886,520 $ 906,869 $ 20,349
=================== =================== ===================
</TABLE>
<TABLE>
<CAPTION>
1996
-----------------------------------------------------------
Gross
Amortized Unrealized
Cost Fair Value Gain (loss)
------------------- ------------------- -------------------
Held-to-maturity
- ----------------
<S> <C> <C> <C>
GNMA $ 1,846,629 $ 1,862,717 $ 16,088
FNMA 78,420 78,959 539
FHLMC 88,502 88,549 47
------------------- ------------------- -------------------
$ 2,013,551 $ 2,030,225 $ 16,674
=================== =================== ===================
</TABLE>
The amortized cost and fair value of mortgage-backed securities as of December
31, 1997 and 1996, by contractual maturity, are 10 years or more, except for one
at December 31, 1997 which matures on August 20, 2005. The amortized cost and
fair value of this security at December 31, 1997 is $191,762 and $192,734,
respectively. However, expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations
without call or prepayment penalties.
F-10
<PAGE>
Pursuant to FAS 115, the unrealized gains/(losses) on AFS securities are
required to be presented as a separate component of retained earnings, net of
tax. As of December 31, 1997 and 1996, the net unrealized gains/(losses) on AFS
securities is determined as follows:
<TABLE>
<CAPTION>
1997 1996
----------------------- -----------------------
<S> <C> <C>
Unrealized gains/(losses) $ ( 20,694 $ ( 16,601)
Deferred income taxes ( 7,036) 2,087
----------------------- -----------------------
$ 13,658 $ ( 14,514)
======================= =======================
</TABLE>
Note 3 - Loans Receivable, Net:
- -------------------------------
Loans receivable consisted of the following at December 31, :
<TABLE>
<CAPTION>
1997 1996
----------------------- -----------------------
<S> <C> <C>
Construction $ 252,322 $ 70,000
Residential 8,235,374 8,359,364
Commercial 343,195 418,929
Share loans 119,764 156,434
Automobile 382,974 380,508
Unsecured 367,563 465,749
----------------------- -----------------------
Total loans 9,700,192 9,850,984
Less: Allowance for loan losses ( 114,832) ( 39,144)
----------------------- -----------------------
$ 9,585,360 $ 9,811,840
======================= =======================
</TABLE>
Residential loans consist primarily of 1-4 family dwelling units; the above
balance also includes multi-family loans with approximate aggregate balances at
December 31, 1997 and 1996 of $254,000 and $94,000, respectively.
An analysis of the allowance for loan losses is as follows as of December 31, :
<TABLE>
<CAPTION>
1997 1996
----------------------- -----------------------
<S> <C> <C>
Balance, beginning of year $ 39,144 $ 38,133
Provisions for loan losses 73,000 2,203
Loans charged off - (3,276)
Recoveries 2,688 (2,084)
----------------------- -----------------------
Balance, end of year $ 114,832 $ 39,144
======================= =======================
</TABLE>
In the ordinary course of business, the Bank has and expects to continue to have
transactions, including borrowings, with its executive officers and directors.
---------
In the opinion of the Bank's management, such transactions were and will
continue to be on substantially the same terms, including interest rate and
collateral, as those prevailing at the time for comparable transactions with
other persons and do not involve more than normal risk of collectibility or
present any other unfavorable features to the Bank. The approximate aggregate
dollar amount of these loans at December 31, 1997 and 1996 was $303,190 and
$639,730, respectively. An analysis of the activity in the loans to executive
officers and directors during 1997 is as follows:
1997
-----------
Aggregate balance, 1/1/97 $ 639,730
Loan originations 0
Increases in line of credits 28,865
F-11
<PAGE>
Loan payoffs ( 316,970)
Principal repayments ( 48,435)
-----------
Aggregate balance, end of year $ 303,190
===========
Note 4 - Property and Equipment, Net:
- -------------------------------------
Property and equipment consisted of the following at December 31,:
<TABLE>
<CAPTION>
1997 1996
------------------------- -----------------------
<S> <C> <C>
Land and building $ 262,284 $ 262,284
Furniture and equipment 88,477 71,453
------------------------- -----------------------
350,761 333,737
Less: accumulated depreciation ( 165,883) ( 144,827)
------------------------- -----------------------
Balance, end of year $ 184,878 $ 188,910
========================= =======================
</TABLE>
Note 5 - Deposits:
- ------------------
Deposits with the Bank consisted of the following at December 31, :
<TABLE>
<CAPTION>
1997 1996
-------------------------- -----------------------
<S> <C> <C>
Certificates of deposits $ 10,224,984 $ 9,067,447
Money market demand accounts 3,374,959 3,168,155
NOW accounts 1,031,088 927,073
Non-interest bearing accounts 546,886 215,150
-------------------------- -----------------------
$ 15,177,917 $ 13,377,825
========================== =======================
</TABLE>
The aggregate amount of deposit accounts exceeding $100,000 was approximately
$1,441,000 and $937,000 at December 31, 1997 and 1996, respectively. Deposits in
excess of $100,000 are not federally insured.
Note 6 - Line of Credit:
- ------------------------
At December 31, 1997 and 1996, the Bank had an available line of credit in the
amount of $500,000. The outstanding balance on the line of credit at December
31, 1997 and 1996 was $0 and $300,000, respectively. The line of credit is
payable upon demand and bears interest at a rate of prime plus 1.25%. In
addition, pursuant to the terms of the line of credit agreement, in order for
the Bank to borrow any funds it is required to maintain a certificate of deposit
at the lending institution; as of December 31, 1997 and 1996, this certificate
of deposit was $100,000.
Note 7 - Income Taxes:
- ----------------------
The income tax provision at December 31, consisted of the following:
<TABLE>
<CAPTION>
1997 1996
--------------------------- -----------------------
Current provision:
<S> <C> <C>
Federal $ 27,100 $ 21,700
State - 12,800
--------------------------- -----------------------
Total current expense 27,100 34,500
Deferred tax expense (benefit):
</TABLE>
F-12
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Federal ( 68,625) 900
Deferred state credit, net ( 12,900) -
--------------------------- -----------------------
Total income tax expense (benefit) $ ( 54,425) $ 35,400
=========================== =======================
</TABLE>
The provision for income taxes differs from that computed by applying statutory
rates to income before income tax expense, as indicated in the following
analysis for the years ended December 31,:
<TABLE>
<CAPTION>
1997 1996
-------------------------------- ------------------------------
<S> <C> <C> <C> <C>
Expected federal tax at statutory rates $ ( 36,797) (34.0%) $ 33,802 34.0%
State tax provision, net ( 8,514) ( 7.9%) 2,773 2.8%
Effect of tax exempt income ( 10,674) ( 9.9%) (11,341) (11.4%)
Effect of dividend exclusion - - (3,189) ( 3.2%)
Other and surtax benefit 1,560 1.5% 13,355 13.4%
-------------------- ----------- ------------------ -----------
Federal tax provision $ ( 54,425) (50.3)% $ 35,400 35.6%
==================== =========== ================== ===========
</TABLE>
Note 8 - Retirement Plan:
- -------------------------
Simplified Employee Pension Plan (SEP)
The Bank has adopted a SEP plan which provides for an annual contribution at the
discretion of the Board of Directors up to 15% of the eligible employee's
compensation. Pension expense charged to operations for the years ended December
31, 1997 and 1996, was $14,799 and $19,256, respectively.
Supplemental Executive Retirement Plan
On December 15, 1997, the Board of Directors adopted a non-qualified
Supplemental Executive Retirement Plan (the "Plan") with an officer of the Bank
to provide post-retirement benefits for a period of ten (10) years, assuming not
less than twenty-five (25) years of service following retirement after age 65.
Pursuant to the Plan, benefits also become payable upon disability, death, or
change of control of the Bank (as defined in the Plan document). As of December
31, 1997, approximately $35,580 has been accrued and recognized as an expense.
Directors Consultation and Retirement Plan
On December 15, 1997, the Board of Directors adopted a non-qualified Directors
Consultation and Retirement Plan ( the "Directors Plan") to provide
post-retirement benefits over a period of ten-years (10) to members of the Board
of Directors who have completed not less than ten-years (10) of service or after
attainment of not less than age 60. Pursuant to the Directors Plan, benefits
also become payable upon disability, death, or change of control of the Bank (as
defined in the Plan document). As of December 31, 1997, approximately $122,920
has been accrued and recognized as an expense.
Note 9 - Regulatory Capital Requirements:
- -----------------------------------------
The Bank is subject to various regulatory capital requirements administered by
its primary federal regulator, The Federal Insurance Deposit Corporation (FDIC).
Failure to meet the minimum regulatory capital requirements can initiate certain
mandatory, and possible additional discretionary actions by regulators, that if
undertaken, could have a direct material affect on the
F-13
<PAGE>
Bank and the financial statements. Under the regulatory capital adequacy
guidelines and the regulatory framework for prompt corrective action, the Bank
must meet specific capital guidelines involving 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
classifications under the prompt corrective action guidelines are also subject
to qualitative judgments by the regulators about components, risk weightings,
and other factors.
Quantitative measures established by regulation to ensure capital adequacy
require the Bank to maintain minimum amounts and ratios of: total risk-based
capital and Tier I capital to risk-weighted assets ( as defined in the
regulations), and Tier I capital to adjusted total assets ( as defined).
Management believes, as of December 31, 1997 and 1996, the Bank meets all the
capital adequacy requirements to which it is subject.
The following tables set forth certain information concerning the Bank's
regulatory capital as of December 31, 1997 and 1996 (dollars in thousands):
<TABLE>
<CAPTION>
1997
----------------------------------------------------------------
Tier I Core Capital Tier I - Risk-Based Tier II -
Capital Risk-Based Capital
--------------------- --------------------- --------------------
<S> <C> <C> <C>
Equity Capital (1) $ 1,170 $ 1,170 $ 1,170
Unrealized (gains) losses on AFS
securities ( 14) ( 14) ( 14)
Plus general valuation allowance (2) - - 102
--------------------- --------------------- --------------------
Total regulatory capital 1,156 1,156 1,258
Minimum required capital 658 326 651
--------------------- --------------------- --------------------
Excess regulatory capital $ 498 $ 830 $ 607
===================== ===================== ====================
Minimum required capital to be well
capitalized under Prompt Corrective
Action Provisions $ 822 $ 489 $ 814
===================== ===================== ====================
Regulatory capital as a % (3) 7.03% 14.20% 15.45%
Minimum required capital % 4.00% 4.00% 8.00%
--------------------- --------------------- --------------------
Excess regulatory capital % 3.03% 10.20% 7.45%
===================== ===================== ====================
Minimum required capital % to be well
capitalized under the Prompt
Corrective Action Provisions 5.00% 6.00% 10.00%
===================== ===================== ====================
</TABLE>
F-14
<PAGE>
<TABLE>
<CAPTION>
1996
----------------------------------------------------------------
Tier I Core Capital Tier I - Risk-Based Tier II -
Capital Risk-Based Capital
--------------------- --------------------- --------------------
<S> <C> <C> <C>
Equity Capital (1) $ 1,196 $ 1,196 $ 1,196
Unrealized (gains) losses on AFS
securities 14 14 14
Plus general valuation allowance (2) - - 37
--------------------- --------------------- --------------------
Total regulatory capital 1,210 1,210 1,247
Minimum required capital 589 309 619
--------------------- --------------------- --------------------
Excess regulatory capital $ 621 $ 901 $ 628
===================== ===================== ====================
Minimum required capital to be well
capitalized under Prompt Corrective
Action Provisions $ 736 $ 464 $ 774
===================== ===================== ====================
Regulatory capital as a % (3) 8.22% 15.64% 16.12%
Minimum required capital % 4.00% 4.00% 8.00%
--------------------- --------------------- --------------------
Excess regulatory capital % 4.22% 11.64% 8.12%
===================== ===================== ====================
Minimum required capital % to be well
capitalized under the Prompt
Corrective Action Provisions 5.00% 6.00% 10.00%
===================== ===================== ====================
</TABLE>
(See footnotes to table of regulatory capital requirements below.)
Footnotes to regulatory capital tables:
Note #: Footnote Description:
- --------------------------------------------------------------------------------
1 Represents equity capital of the Bank as reported to the FDIC and
the Department of Banking on Form 033 for the quarters ended
December 31, 1997 and 1996
2 Limited to 1.25% of risk adjusted assets.
3 Tier I capital is calculated as a percentage of adjusted total
average assets of $16,445 and $14,716 as of December 31, 1997 and
1996, respectively. Tier I and Tier II risk-based capital are
calculated as a percentage of adjusted risk weighted assets of
$8,143 and $7,736 as of December 31, 1997 and 1996, respectively.
F-15
<PAGE>
Note 10 - Reconciliation of Net Income and Retained Earnings from Financial
- --------------------------------------------------------------------------------
Statements to Annual Regulatory Reports:
- ----------------------------------------
The following is a reconciliation of net income and retained earnings as
reported in the audited financial statements to the net income and retained
earnings as reported by the Bank in its annual call reports as of December 31, :
<TABLE>
<CAPTION>
1997
---------------------------------------------------------
Net Loss Retained Earnings
----------------------- ------------------------
<S> <C> <C>
Per audited financial statements: $ ( 53,801) $ 1,156,387
Audit adjustments:
Income taxes ( 53,068) ( 53,068)
Accrued pension expense 118,500 118,500
Other accrued expenses 9,000 9,000
Computer conversion costs 6,456 6,456
Other Audit adjustments, net 2,813 2,813
----------------------- ------------------------
Net adjustments 83,701 83,701
----------------------- ------------------------
Change in net unrealized gains/losses on AFS
securities - 13,000
----------------------- ------------------------
Per call report $ 29,900 $ 1,253,088
======================= ========================
</TABLE>
<TABLE>
<CAPTION>
1996
---------------------------------------------------------
Net Income Retained Earnings
----------------------- ------------------------
<S> <C> <C>
Per audited financial statements: $ 99,419 $1,210,188
Audit adjustments:
Income taxes 6,623 6,623
Accrued interest payable on deposits 7,847 7,847
Other Audit adjustments, net 2,436 2,436
-----------------------
------------------------
Net adjustments 16,906 16,906
----------------------- ------------------------
Change in unrealized holding gains
and losses on AFS securities - (12,000)
----------------------- ------------------------
Per call report $116,325 $1,215,094
======================= ========================
</TABLE>
Note 11 - Supplemental Statement of Cash Flows Disclosures:
- -----------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
------------------------ ------------------------
<S> <C> <C>
Loan transferred to performing loan from real
estate owned $ ^ 170,263 $ -
======================== ========================
Cash paid during year for interest $ 660,954 $ 543,100
======================== ========================
Cash paid during year for income taxes $ 28,932 $ 13,900
======================== ========================
</TABLE>
F-16
<PAGE>
Note 12 - Commitments and Contingencies:
- ----------------------------------------
Commitments
In the normal course of business, the Bank makes various commitments which are
not reflected in the accompanying financial statements. These instruments
involve, to varying degrees, elements of credit and interest rate risk in excess
of the amount recognized in the statement of condition. The Bank's exposure to
credit loss in the event of nonperformance by the other parties to the financial
instruments is represented by the contractual amounts disclosed. The Bank
minimizes its exposure to credit loss under these commitments by subjecting them
to credit approval and review procedures, and collateral requirements, as deemed
necessary.
The off-balance sheet commitments as of December 31, 1997 and 1996, consisted
approximately of the following:
<TABLE>
<CAPTION>
1997 1996
--------------------------- -----------------------
<S> <C> <C>
Commitments to extend credit:
One to four family $ 516,000 $ -
Lines of credit 297,000 333,000
--------------------------- -----------------------
$ 813,000 $ 333,000
=========================== =======================
</TABLE>
The Bank has no commitment to loan additional funds to borrowers of impaired or
nonaccrual loans. The majority of the Bank's commitments to fund the equity
lines of credit are at variable market rates of interest; the Bank's commitment
to fund future loans for one to four family mortgage loans are generally fixed
rates ranging from 7.25% to 8.25%. Generally, the Bank's commitments to fund
future loans expire in 30 to 60 days.
Contingencies
In the normal course of business, the Bank is involved in various legal
proceedings primarily involving the collection of outstanding loans. None of
these proceedings are expected to have a material effect on the financial
position of the Bank.
The Bank is aware of the issues associated with the programming code in existing
computer systems as the millennium ( Year 2000 ) approaches. The "Year 2000"
problem is pervasive and complex as virtually every computer operation will be
affected in some way by the rollover of the two-digit year value to 00. The
issue is whether computer systems will properly recognize date-sensitive
information when the year changes to 2000. Systems that do not properly
recognize such information could generate erroneous data or cause a system to
fail.
The Bank utilizes a service bureau to process the majority of its accounting
transactions. The Bank is utilizing the expertise of the service bureau to
identify, correct or reprogram, and test the systems for the year 2000
compliance. As of December 31, 1997, the Bank's service bureau has reported that
it is 82% complete with the project to bring its computer system into compliance
with the year 2000. It is expected that the project will be fully completed by
June 30, 1998, and for testing to begin in the third quarter of 1998. However,
the Bank will be responsible for verifying that all of its vendors software
upgrades are year 2000 compliant and are fully tested, including any interface
to its service bureau. As a result, the year 2000 compliance creates risk for
the Bank from unforeseen problems in its own computer systems and from third
parties with whom the Bank deals on financial transactions worldwide. Although
the Bank has not yet assessed the year 2000 compliance expense and related
potential affect on the Bank's earnings, it does not expect the costs to be
material.
F-17
<PAGE>
Note 13 - Plan of Conversion:
- -----------------------------
On December 15, 1997, the Board of Trustees of the Bank, subject to regulatory
approval, ratified a Plan of Conversion ( the "Plan" ) to convert from a state
mutual savings bank to a federally insured stock savings bank and the concurrent
formation of a holding company for the Bank. The Plan provides that the holding
company will offer nontransferable subscription rights to purchase common stock
of the holding company. The rights will be offered first to eligible account
holders, the Bank's tax-qualified employee stock benefits plans, supplemental
eligible account holders, and directors, officers, and employees. Any shares
remaining may then be offered to the general public.
At the date of conversion, the Bank will establish a liquidation account in an
amount equal to its retained earnings reflected in the statement of condition
appearing in the final prospects. 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 will be reduced annually to the extent these
account holders have reduced their qualifying deposits. In the event of a
complete liquidation, each eligible savings account holder will be entitled to
receive a distribution from the liquidation account in an amount proportionate
to the current adjusted qualifying balances for accounts then held.
The Bank may not declare or pay a cash dividend on, or repurchase any of its
common shares if the effect thereof would cause the Bank's shareholders' equity
to be reduced below either the amount required for the liquidation account or
the regulatory capital requirements for insured institutions.
Costs associated with the conversion will be deferred and deducted from the
proceeds of the stock offering. If, for any reason, the offering is not
successful, the deferred costs will be charged to operations. As of December 31,
1997, there was $11,200 of costs associated with the conversion that have been
deferred and presented as other assets.
F-18
<PAGE>
No dealer, salesman or other person has been authorized to give any information
or to make any representations not contained in this document in connection with
the offering made hereby, and, if given or made, such information or
representations must not be relied upon as having been authorized by Carnegie
Savings Bank, Carnegie Financial Corporation or Capital Resources, Inc. 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. Neither the delivery of
this document by Carnegie Savings Bank, Carnegie Financial Corporation or
Capital Resources, Inc. nor any sale made hereunder shall in any circumstances
create an implication that there has been no change in the affairs of Carnegie
Savings Bank or Carnegie Financial Corporation since any of the dates as of
which information is furnished herein or since the date hereof.
CARNEGIE FINANCIAL CORPORATION
Up to 238,050 Shares
(Anticipated Maximum, As Adjusted)
Common Stock
PROSPECTUS
Capital Resources, Inc.
Dated __________, 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:
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 of Carnegie Savings Bank*
3(i) Articles of Incorporation of Carnegie Financial Corporation*
3(ii) Bylaws of Carnegie Financial Corporation*
4 Specimen Stock Certificate of Carnegie Financial Corporation*
5.1 Opinion of Malizia, Spidi, Sloane & Fisch, P.C. regarding legality of securities
registered
5.2 Opinion of FinPro, Inc. as to the value of subscription rights*
8.1 Federal Tax Opinion of Malizia, Spidi, Sloane & Fisch, P.C.
8.2 State Tax Opinion of Malizia, Spidi, Sloane & Fisch, P.C.
10.1 Form of Employment Agreement between the Bank and Shirley Chiesa*
10.2 Supplemental Executive Retirement Plan*
10.3 Form of Directors Consultation and Retirement Plan between the Bank
and each of the directors*
23.1 Consent of Malizia, Spidi, Sloane & Fisch, P.C. (contained in its opinions filed
as Exhibits 5.1, 8.1, and 8.2)
23.2 Consent of Goff Ellenbogen Backa & Alfera, LLC
23.3 Consent of FinPro, Inc.*
24 Power of Attorney (reference is made to the signature page)
27 Financial Data Schedule**
99.1 Stock Order Form*
99.2 Appraisal Report of FinPro, Inc.
99.3 Marketing Materials
</TABLE>
- --------------------------
* Previously filed
** Electronic filing only
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form SB-2 and authorized this registration
statement to be signed on its behalf by the undersigned, in Pittsburgh,
Pennsylvania, on May 6, 1998.
By: /s/Shirley Chiesa
----------------------------------
Shirley Chiesa
President and Director
(Duly Authorized Representative)
We the undersigned directors and officers of do hereby severally
constitute and appoint Shirley Chiesa our true and lawful attorney and agent, to
do any and all things and acts in our names in the capacities indicated below
and to execute all instruments for us and in our names in the capacities
indicated below which said Shirley Chiesa may deem necessary or advisable to
enable to comply with the Securities Act of 1933, as amended, and any rules,
regulations and requirements of the Securities and Exchange Commission, in
connection with the registration statement on Form SB-2 relating to the offering
of common stock, including specifically but not limited to, power and authority
to sign for us or any of us, in our names in the capacities indicated below, the
registration statement and any and all amendments (including post-effective
amendments) thereto; and we hereby ratify and confirm all that Shirley Chiesa
shall do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities indicated as of May 6, 1998.
/s/Lois A. Wholey /s/Shirley Chiesa
- -------------------------------------------- --------------------------------
Lois A. Wholey Shirley Chiesa
Director President and Director
(Principal Executive Officer)
/s/Charles L. Rupprecht /s/Morry J. Miller
- -------------------------------------------- --------------------------------
Charles L. Rupprecht Morry J. Miller
Treasurer and Director Director
/s/Joseph Pigoni /s/JoAnn Narduzzi, M.D.
- -------------------------------------------- --------------------------------
Joseph Pigoni JoAnn Narduzzi, M.D.
Executive Vice President Director
(Principal Accounting and Financial Officer)
EXHIBIT 1
<PAGE>
153,000 - 207,000 Shares
(subject to increase up to 238,050 shares
in the event of an oversubscription)
CARNEGIE FINANCIAL CORPORATION
(a Pennsylvania corporation)
COMMON STOCK
($0.10 Par Value Per Share)
Subscription Price: $10.00 Per Share
AGENCY AGREEMENT
, 1998
Capital Resources, Inc.
1211 Connecticut Avenue, N.W.
Suite 200
Washington, D.C. 20036
Ladies and Gentlemen:
Carnegie Financial Corporation (the "Company") and Carnegie Savings
Bank, a federally chartered mutual savings and loan association ("Association"),
with its deposit accounts insured by the Savings Association Insurance Fund
("SAIF") administered by the Federal Deposit Insurance Corporation ("FDIC"),
hereby confirm their agreement with Capital Resources, Inc. ("Capital
Resources") as follows:
SECTION 1. The Offering. The Association, in accordance with and
pursuant to its plan of conversion adopted by the Board of Directors of the
Association (the "Plan"), intends to be converted from a federally-chartered
mutual savings and loan association to a federally-chartered stock savings and
loan association and will sell all of its issued and outstanding stock to the
Company. The Company will offer and sell its common stock (the "Common Stock")
in a subscription offering ("Subscription Offering") to (1) depositors of the
Bank as of November 30, 1996 ("Eligible Account Holders"), (2) tax qualified
employee benefit plans of the Association, (3) depositors of the Association as
of March 31, 1998 ("Supplemental Eligible Account Holders"), (4) certain other
members of the Association ("Other Members") and (5) its employees, officers and
directors, pursuant to rights to subscribe for shares of Common Stock (the
"Shares"). Subject to the prior subscription rights of the above-listed parties,
the Company may offer its Common Stock for sale in a public offering to selected
persons (the "Public Offering,") and, depending on market conditions, the
Company may also offer the Common Stock for sale to persons residing in
communities near the Association's Offices in a direct community offering (the
"Direct Community Offering") conducted after the Subscription Offering. The
Public Offering, the Direct Community Offering and Subscription Offering are
refereed to collectively as the "Offering," and all such Offerees being referred
to in the aggregate as "Eligible Offerees." Shares may also be sold in the
Public Offering by a selling group of broker-dealers organized and managed by
Capital Resources. It is acknowledged that the purchase of Shares in the
Offering is subject to maximum and minimum purchase limitations as described in
the Plan and that the Company may reject in whole or in part any subscriptions
received from subscribers in the Public Offering or Direct Community Offering.
- 1 -
<PAGE>
The Company and the Association desire to retain Capital Resources to
assist the Company with its sale of the Shares in the Offering. By and through
this Agreement, the Company and the Association confirm the retention of Capital
Resources to assist the Company and the Association during the Offering.
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement on Form SB-2 (File No. 333-48655)
containing an offering prospectus relating to the Offering for the registration
of the Shares under the Securities Act of 1933, as amended (the "1933 Act"), and
has filed such amendments thereto, if any, and such amended prospectuses as may
have been required to the date hereof (the "Registration Statement"). The
prospectus, as amended, included in the Registration Statement at the time it
initially becomes effective, is hereinafter called the "Offering Prospectus",
except that if any prospectus is filed by the Company pursuant to Rule 424(b) or
(c) of the rules and regulations of the Commission under the 1933 Act (the "1933
Act Regulations") differing from the offering prospectus included in the
Registration Statement at the time it initially becomes effective, the term
"Offering Prospectus" shall refer to the offering prospectus filed pursuant to
Rule 424(b) or (c) from and after the time said offering prospectus is filed
with or mailed to the Commission for filing.
In accordance with Title 12, Part 563b of the Code of Federal
Regulations (the "Conversion Regulations"), the Association has filed with the
Office of Thrift Supervision (the "OTS") an Application for Approval of
Conversion on Form AC (the "Conversion Application") including the Offering
Prospectus and has filed such amendments thereto, if any, as may have been
required by the OTS. The Conversion Application has been approved by the OTS.
The Company has filed with the OTS its application on Form H-(e)lS (the "Holding
Company Application") to acquire the Association under the Home Owners' Loan
Act, as amended (12 U.S.C.
ss.1467a) ("HOLA").
SECTION 2. Retention of Capital Resources; Compensation; Sale and
Delivery of the Shares. Subject to the terms and conditions herein set forth,
the Company and the Association hereby appoint Capital Resources as their agent
to advise and assist the Company and the Association with the Company's sale of
the Shares in the Offering.
On the basis of the representations, warranties, and agreements herein
contained, but subject to the terms and conditions herein set forth, Capital
Resources accepts such appointment and agrees to consult with and advise the
Company and the Association as to matters relating to the Conversion and the
Offering. It is acknowledged by the Company and the Association that Capital
Resources shall not be required to purchase any Shares and shall not be
obligated to take any action which is inconsistent with any applicable laws,
regulations, decisions or orders. If requested by the Company or the
Association, Capital Resources also may assemble and manage a selling group of
broker dealers which are members of the National Association of Securities
Dealers, Inc. (the "NASD") to participate in the solicitation of purchase orders
for Shares under a selected dealers' agreement ("Selected Dealers' Agreement").
The obligations of Capital Resources pursuant to this Agreement shall terminate
upon the completion or termination or abandonment of the Plan by the Company or
the Association or upon termination of the Subscription Offering, or if the
terms of the Conversion are substantially amended so as to materially and
adversely change the role of Capital Resources, but in no event later than 45
days after the completion of the Offering (the "End Date"). All fees due to
Capital Resources but unpaid will be payable to Capital Resources in next day
funds at the earlier of the Closing Date (as hereinafter defined) or the End
Date. In the event the Offering are extended beyond the End Date, the Company,
the Association and Capital Resources may mutually agree to renew this Agreement
under mutually acceptable terms.
In the event the Company is unable to sell a minimum of $1,530,000 of
Common Stock within the period herein provided, this Agreement shall terminate,
and the Company shall refund to any persons who have subscribed for any of the
Shares, the full amount which it may have received from them plus accrued
interest as
- 2 -
<PAGE>
set forth in the Offering Prospectus; and none of the parties to this Agreement
shall have any obligation to the other parties hereunder, except as set forth in
this Section 2 and in Sections 7, 9 and 10 hereof.
In the event the closing does not occur, the Conversion is terminated
or otherwise abandoned, or the terms of the Conversion are substantially amended
so as to materially and adversely change the role of Capital Resources, Capital
Resources shall be entitled to retain any compensation already received for
consulting services prior to the closing, reimbursed for all reasonable legal
fees and actual, accountable out-of-pocket expenses subject to the limits set
forth in paragraph (b) below for rendering financial advice to the Association
concerning the structure of the Conversion, preparing a market and financial
analysis, performing due diligence and assisting in the preparation of the
Application for Conversion and the Registration Statement, which shall be paid
upon such termination, abandonment or amendment or within five days of such
event.
If all conditions precedent to the consummation of the Conversion,
including, without limitation, the sale of all Shares required by the Plan to be
sold, are satisfied, the Company agrees to issue or have issued the Shares sold
in the Offering and to release for delivery certificates for such Shares on the
Closing Date (as hereinafter defined) against payment to the Company by any
means authorized by the Plan, provided, however, that no certificates shall be
released for such shares until the conditions specified in Section 7 hereof
shall have been complied with to the reasonable satisfaction of Capital
Resources and its counsel. The release of Shares against payment therefor shall
be made on a date and at a time and place acceptable to the Company, the
Association and Capital Resources. The date upon which the Company shall release
or deliver the Shares sold in the Offering, in accordance with the terms hereof,
is herein called the "Closing Date."
Capital Resources shall receive the following compensation for its
services hereunder:
(a) a marketing fee in the amount of $60,000 (of which $15,000 was
payable on execution of the engagement letter dated January 26, 1998 and $15,000
upon regulatory approval of the Conversion Application for consulting work
performed prior to the Offering, and the balance upon closing of the
Conversion).
(b) Capital Resources shall be reimbursed for all reasonable
out-of-pocket expenses, including, but not limited to, legal fees, travel,
communications and postage, incurred by it whether or not the Conversion is
successfully completed as set forth in Section 7 hereof. Reimbursement for
Capital Resources' legal and other expenses shall not exceed $20,000, unless
otherwise approved by the Association. Capital Resources shall be reimbursed
promptly for all out-of-pocket expenses upon receipt by the Company or the
Association of a monthly itemized bill summarizing such expenses since the date
of the last bill, if any, to the date of the current bill.
(c) In the event other broker-dealers are assembled and managed by
Capital Resources to participate in the sale of the shares pursuant to a
Selected Dealers' Agreement or other arrangement, the Company and the
Association will enter into a separate agreement for the payment of selected
dealers' commissions.
All subscription funds received by Capital Resources (and if by check
shall be made payable to the Company) or by other NASD registered broker-dealers
soliciting subscriptions (if any) shall be transmitted (either by U.S. Mail or
similar type of transmittal) to the Company by noon of the following business
day.
SECTION 3. Offering Prospectus; the Offering. The Shares are to be
initially offered in the Offering at the Purchase Price as set forth on the
cover page of the Offering Prospectus.
SECTION 4. Representations and Warranties. The Company and the
Association jointly and severally represent and warrant to Capital Resources as
follows:
- 3 -
<PAGE>
(a) The Registration Statement was declared effective by the Commission
on , 1998. At the time the Registration Statement, including the Offering
Prospectus contained therein (including any amendment or supplement thereto),
became effective, the Registration Statement complied in all material respects
with the requirements of the 1933 Act and the 1933 Act Regulations and the
Registration Statement, including the Offering Prospectus contained therein
(including any amendment or supplement thereto), any Blue Sky Application or any
Sales Information (as such terms are defined previously herein or in Section 8
hereof) authorized by the Company or the Association for use in connection with
the Offering did not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, and at the time any Rule 424(b) or (c) Offering Prospectus was
filed with or mailed to the Commission for filing and at the Closing Date
referred to in Section 2, the Registration Statement including the Offering
Prospectus contained therein (including any amendment or supplement thereto),
any Blue Sky Application or any Sales Information (as such terms are defined
previously herein or in Section 8 hereof) authorized by the Company or the
Association for use in connection with the Offering will not contain an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that the representations and
warranties in this Section 4(a) shall not apply to statements in or omissions
from such Registration Statement or Offering Prospectus made in reliance upon
and in conformity with written information furnished to the Company or the
Association by Capital Resources expressly regarding Capital Resources for use
under the caption "The Conversion-Marketing Arrangements."
(b) The Conversion Application, including the Offering Prospectus, was
approved by the OTS on , 1998. At the time of the approval of the Conversion
Application, including the Offering Prospectus, by the OTS (including any
amendment or supplement thereto) and at all times subsequent thereto until the
Closing Date, the Conversion Application, including the Offering Prospectus,
will comply in all material respects with the Conversion Regulations and any
other rules and regulations of the OTS. The Conversion Application, including
the Offering Prospectus (including any amendment or supplement thereto), does
not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading; provided, however, that representations or warranties in this
Section 4(b) shall not apply to statements or omissions made in reliance upon
and in conformity with written information furnished to the Association by
Capital Resources expressly regarding Capital Resources for use in the Offering
Prospectus contained in the Conversion Application under the caption "The
Conversion-Marketing Arrangements."
(c) The Company has filed with the OTS the Holding Company Application
and will have received, as of the Closing Date, approval of its acquisition of
the Association from the OTS.
(d) No order has been issued by the OTS, the Commission, the FDIC (and
hereinafter reference to the FDIC shall include the BIF), or to the best
knowledge of the Company or the Association any State regulatory or Blue Sky
authority, preventing or suspending the use of the Offering Prospectus and no
action by or before any such government entity to revoke any approval,
authorization or order of effectiveness related to the Conversion is, to the
best knowledge of the Association or the Company, pending or threatened.
(e) At the Closing Date referred to in Section 2, the Plan will have
been adopted by the Board of Directors of both the Company and the Association,
the Company and the Association will have completed in all material respects the
conditions precedent to the Conversion and the offer and sale of the Shares will
have been conducted in all material respects in accordance with the Plan, the
Conversion Regulations and all other applicable laws, regulations, decisions and
orders, including all terms, conditions, requirements and provisions precedent
to the Conversion imposed upon the Company or the Association by the OTS, the
Commission or any
- 4 -
<PAGE>
other regulatory authority and in all materials respects in the manner described
in the Offering Prospectus. At the Closing Date, no person will have sought to
obtain review of the final action of the OTS, to the knowledge of the Company or
the Association, in approving the Plan or in approving the Conversion or the
Company's application to acquire all of the capital stock and control of the
Association pursuant to the HOLA or any other statute or regulation.
(f) The Association is now a duly organized and validly existing
federally-chartered savings and loan association in mutual form of organization
and upon the Conversion will become a duly organized and validly existing
federally-chartered savings and loan association in capital stock form of
organization, in both instances duly authorized to conduct its business and own
its property as described in the Registration Statement and the Offering
Prospectus; the Company and the Association have obtained all material licenses,
permits and other governmental authorizations currently required for the conduct
of their respective businesses; all such licenses, permits and governmental
authorizations are in full force and effect, and the Company and the Association
are in all material respects complying with all laws, rules, regulations and
orders applicable to the operation of their businesses; and the Association is
in good standing under the laws of the United States and is duly qualified as a
foreign corporation to transact business and is in good standing in each
jurisdiction in which its ownership of property or leasing of properties or the
conduct of its business requires such qualification, unless the failure to be so
qualified in one or more of such jurisdictions would not have a material adverse
effect on the condition, financial or otherwise, or the business, operations or
income of the Association. The Association does not own equity securities or any
equity interest in any other business enterprise except as described in the
Offering Prospectus. Upon the completion of the Conversion of the Association to
a federally-chartered stock savings and loan association pursuant to the Plan,
(i) all of the authorized and outstanding capital stock of the Association will
be owned by the Company, and (ii) the Company will have no direct subsidiaries
other than the Association. The Conversion will have been effected in all
material respects in accordance with all applicable statutes, regulations,
decisions and orders; and except with respect to the filing of certain
post-sale, post-conversion reports and documents in compliance with the 1933 Act
Regulations or the OTS's resolutions or letters of approval. All terms,
conditions, requirements and provisions with respect to the Conversion imposed
by the Commission, the OTS and the FDIC, if any, will have been complied with by
the Company and the Association in all material respects or appropriate waivers
will have been obtained and all material notice and waiting periods will have
been satisfied, waived or elapsed.
(g) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware with
corporate power and authority to own, lease and operate its properties and to
conduct its business as described in the Registration Statement and the Offering
Prospectus, and the Company is qualified to do business as a foreign corporation
in any jurisdiction in which the conduct of its business requires such
qualification, except where the failure to so qualify would not have a material
adverse effect on the business of the Company.
(h) The Association is a member of the Federal Home Loan Bank of
Pittsburgh ("FHLBPB"); and the deposit accounts of the Association are insured
by the FDIC up to the applicable limits. Upon consummation of the Conversion,
the liquidation account for the benefit of Eligible Account Holders and
Supplemental Eligible Account Holders will be duly established in accordance
with the requirements of the Conversion Regulations.
(i) The Company and the Association have good and marketable title to
all assets owned by them which are material to the business of the Company and
the Association and to those assets described in the Registration Statement and
Offering Prospectus as owned by them, free and clear of all liens, charges,
encumbrances or restrictions, except such as are described in the Registration
Statement and Offering Prospectus or are not materially significant or important
in relation to the business of the Company and the Association; and all of the
leases and subleases material to the business of the Company and the Association
under which the
- 5 -
<PAGE>
Company or the Association holds properties, including those described in the
Registration Statement and Offering Prospectus, are in full force and effect.
(j) The Association has received an opinion of its counsel, Malizia,
Spidi, Sloane & Fisch, P.C., with respect to the federal income tax consequences
of the Conversion of the Association from mutual to stock form, the acquisition
of the capital stock of the Association by the Company, the sale of the Shares,
and the reorganization of the Association as described in the Registration
Statement and the Offering Prospectus and an opinion from Malizia, Spidi, Sloane
& Fisch, P.C. with respect to the State income tax consequences of the proposed
transaction; all material aspects of the opinions of Malizia, Spidi, Sloane &
Fisch, P.C. are accurately summarized in the Offering Prospectus; and the facts
and representations upon which such opinions are based are truthful, accurate
and complete, and neither the Association nor the Company will take any action
inconsistent therewith.
(k) The Company and the Association have all such power, authority,
authorizations, approvals and orders as may be required to enter into this
Agreement, to carry out the provisions and conditions hereof and to issue and
sell the Capital Stock of the Association to the Company and Shares to be sold
by the Company as provided herein and as described in the Offering Prospectus.
The consummation of the Conversion, the execution, delivery and performance of
this Agreement and the consummation of the transactions herein contemplated have
been duly and validly authorized by all necessary corporate action on the part
of the Company and the Association and this Agreement has been validly executed
and delivered by the Company and the Association and is the valid, legal and
binding agreement of the Company and the Association enforceable in accordance
with its terms (except as the enforceability thereof may be limited by
bankruptcy, insolvency, moratorium, reorganization or similar laws relating to
or affecting the enforcement of creditors' rights generally or the rights of
creditors of savings and loan holding companies, the accounts of whose
subsidiaries are insured by the FDIC or by general equity principles regardless
of whether such enforceability is considered in a proceeding in equity or at
law, and except to the extent, if any, that the provisions of Sections 9 and 10
hereof may be unenforceable as against public policy) or pursuant to Section 23A
of the Federal Reserve Act.
(l) The Company and the Association are not in violation of any
directive which has been delivered to the Company or the Association or of which
management of the Company or the Association has actual knowledge from the OTS,
the Commission, the FDIC or any other agency to make any material change in the
method of conducting their businesses so as to comply in all material respects
with all applicable statutes and regulations (including, without limitation,
regulations, decisions, directives and orders of the OTS, the Commission and the
FDIC) and except as set forth in the Registration Statement and the Offering
Prospectus, there is no suit or proceeding or, to the knowledge of the Company
or the Association, charge, investigation or action before or by any court,
regulatory authority or governmental agency or body, pending or, to the
knowledge of the Company or the Association, threatened, which might materially
and adversely affect the Conversion, the performance of this Agreement or the
consummation of the transactions contemplated in the Plan and as described in
the Registration Statement or which might result in any material adverse change
in the condition (financial or otherwise), earnings, capital, properties,
business affairs or business prospects of the Company or the Association or
which would materially affect their properties and assets.
(m) The financial statements which are included in the Registration
Statement and which are part of the Offering Prospectus fairly present the
financial condition, results of operations, retained earnings and cash flows of
the Association at the respective dates thereof and for the respective periods
covered thereby, and comply as to form in all material respects with the
applicable accounting requirements of Title 12 of the Code of Federal
Regulations and generally accepted accounting principles ("GAAP") (including
those requiring the recording of certain assets at their current market value).
Such financial statements have been prepared in accordance with generally
accepted accounting principles consistently applied through the periods
involved, present fairly in all
- 6 -
<PAGE>
material respects the information required to be stated therein and are
consistent with the most recent financial statements and other reports filed by
the Association with the OTS and the FDIC, except that accounting principles
employed in such filings conform to requirements of such authorities and not
necessarily to generally accepted accounting principles. The other financial,
statistical and pro forma information and related notes included in the Offering
Prospectus present fairly the information shown therein on a basis consistent
with the audited and unaudited financial statements, if any, of the Association
included in the Offering Prospectus, and as to the pro forma adjustments, the
adjustments made therein have been properly applied on the basis described
therein.
(n) Since the respective dates as of which information is given in the
Registration Statement and the Offering Prospectus, except as may otherwise be
stated therein: (i) there has not been any material adverse change in the
financial condition of the Company or the Association, or of the Company and the
Association considered as one enterprise, or in the earnings, capital,
properties, business affairs or business prospects of the Company or the
Association, whether or not arising in the ordinary course of business, (ii)
there has not been (A) an increase of greater than $250,000 in the long term
debt of the Association or (B) an increase of $250,000 in non performing assets
(consisting of accruing loans past due 90 days or more, non-accruing loans and
foreclosed assets) or (C) a decrease of $175,000 or more in the allowance for
loan losses or (D) any decrease in total equity or (E) a decrease in net income
from January 1, 1998 to date when compared to the like period in 1997 or (F) any
change in total assets of the Association in an amount greater than $3,000,000
(excluding the proceeds of stock subscriptions) or (H) any other material change
which would require an amendment to the Offering Prospectus; (iii) the
Association has not issued any securities or incurred any liability or
obligation for borrowing other than in the ordinary course of business; (iv)
there have not been any material transactions entered into by the Company or the
Association, except with respect to those transactions entered into in the
ordinary course of business; and (v) the capitalization, liabilities, assets,
properties and business of the Company and the Association conform in all
material respects to the descriptions thereof contained in the Offering
Prospectus, and neither the Company nor the Association have any material
liabilities of any kind, contingent or otherwise, except as set forth in the
Offering Prospectus.
(o) As of the date hereof and as of the Closing Date, neither the
Company nor the Association is in violation of its certificate of incorporation
or charter, respectively, or its bylaws (and the Association will not be in
violation of its charter or bylaws in capital stock form as of the Closing Date)
or in default in the performance or observance of any material obligation,
agreement, covenant, or condition contained in any contract, lease, loan
agreement, indenture or other instrument to which it is a party or by which it,
or any of its property may be bound which would result in a material adverse
change in the condition (financial or otherwise), earnings, capital, properties,
business affairs or business prospects of the Company or Association or which
would materially affect their properties or assets. The consummation of the
transactions herein contemplated will not (i) conflict with or constitute a
breach of, or default under, the certificate of incorporation and bylaws of the
Company, the charter and bylaws of the Association (in either mutual or capital
stock form), or any material contract, lease or other instrument to which the
Company or the Association has a beneficial interest, or any applicable law,
rule, regulation or order; (ii) violate any authorization, approval, judgment,
decree, order, statute, rule or regulation applicable to the Company or the
Association; or (iii) with the exception of the Liquidation Account established
in the Conversion, result in the creation of any material lien, charge or
encumbrance upon any property of the Company or the Association.
(p) No default exists, and no event has occurred which with notice or
lapse of time, or both, would constitute a default on the part of the Company or
the Association, in the due performance and observance of any term, covenant or
condition of any indenture, mortgage, deed of trust, note, Association loan or
credit agreement or any other instrument or agreement to which the Company or
the Association is a party or by which any of them or any of their property is
bound or affected in any respect which, in any such cases, is material to the
Company
- 7 -
<PAGE>
or the Association; such agreements are in full force and effect; and no other
party to any such agreements has instituted or, to the best knowledge of the
Company or the Association, threatened any action or proceeding wherein the
Company or the Association would or might be alleged to be in default
thereunder.
(q) Upon consummation of the Conversion, the authorized, issued and
outstanding equity capital of the Company will be within the range set forth in
the Registration Statement under the caption "Capitalization," and no shares of
Common Stock have been or will be issued and outstanding prior to the Closing
Date referred to in Section 2; the Shares will have been duly and validly
authorized for issuance and, when issued and delivered by the Company pursuant
to the Plan against payment of the consideration calculated as set forth in the
Plan and in the Offering Prospectus, will be duly and validly issued and fully
paid and non-assessable; the issuance of the Shares will not violate any
preemptive rights; the Shares will be issued in conformity with the provisions
of the Plan, the Offering Prospectus, and the Conversion Regulations; and the
terms and provisions of the Shares will conform in all material respects to the
description thereof contained in the Registration Statement and the Offering
Prospectus. Upon the issuance of the Shares, good title to the Shares will be
transferred from the Company to the purchasers thereof against payment therefor,
subject to such claims as may be asserted against the purchasers thereof by
third party claimants.
(r) No approval of any regulatory or supervisory or other public
authority is required in connection with the execution and delivery of this
Agreement or the issuance of the Shares, except for the approval of the OTS, the
Commission and any necessary qualification or registration under the securities
or blue sky laws of the various states in which the Shares are to be offered and
as may be required under the regulations-of the National Association of
Securities Dealers, Inc. ("NASD").
(s) Goff, Ellenbogen, Backa, & Alfera, LLC ("GEBA"), which has
certified the financial statements of the Association included in the
Registration Statement, are with respect to the Company and the Association
independent public accountants within the meaning of the Code of Professional
Ethics of the American Institute of Certified Public Accountants and Title 12 of
the Code of Federal Regulations, Section 571.2(c)(3) and the 1933 Act and the
1933 Act Regulations.
(t) The Company and the Association have (subject to all properly
obtained extensions) timely filed all required federal and state tax returns,
have paid all taxes that have become due and payable in respect of such returns,
have made adequate reserves for similar future tax liabilities and no deficiency
has been asserted with respect thereto by any taxing authority.
(u) Appropriate arrangements have been made for placing the funds
received from subscriptions for Shares in special interest-bearing accounts with
the Association until all Shares are sold and paid for, with provision for
refund to the purchasers in the event that the Conversion is not completed for
whatever reason or for delivery to the Company if all Shares are sold.
(v) The Company and the Association are in compliance in all material
respects with the applicable financial record keeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, and
the regulations and rules thereunder.
(w) To the knowledge of the Company and the Association, none of the
Company, the Association nor employees of the Company or the Association have
made any payment of funds of the Company or the Association as a loan to any
person for the purchase of the Shares other than the Employee Stock Ownership
Plan Trust.
(x) Prior to the Conversion, the Association was not authorized to
issue shares of capital stock and
- 8 -
<PAGE>
neither the Company nor the Association has: (i) issued any securities within
the last 18 months (except for notes to evidence other Association loans and
reverse repurchase agreements or other liabilities); (ii) had any material
dealings within the twelve months prior to the date hereof with any member of
the NASD, or any person related to or associated with such member, other than
discussions and meetings relating to the proposed the Offering and routine
purchases and sales of U.S. government and agency securities and other
investment securities; (iii) entered into a financial or management consulting
agreement except as contemplated hereunder; and (iv) engaged any intermediary
between Capital Resources and the Company and the Association in connection with
the offering of Common Stock, and no person is being compensated in any manner
for such service.
(y) All pending legal proceedings to which the Company or the Bank is a
party or of which any of their property is the subject which are not described
in the Registration Statement and the Offering Prospectus, including ordinary
routine litigation incidental to the business are, considered in the aggregate,
not material.
(z) To the knowledge of the Company and the Association, the Company
and the Association comply in all material respects with all laws, rules and
regulations relating to environmental protection, and neither the Company nor
the Association has been notified or is otherwise aware that any of them is
potentially liable, or is considered potentially liable in any material respect,
under the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended, or any similar state or local laws. There are no actions,
suits, regulatory investigations or other proceedings pending or, to the
knowledge of the Company or the Association, threatened against the Company or
the Association relating to environmental protection, nor does the Company or
the Association have any reason to believe any such proceedings may be brought
against any of them.
(aa) The Association has no subsidiaries.
Any certificates signed by an officer of the Company or the
Association and delivered to Capital Resources or its counsel that refer to this
Agreement shall be deemed to be a representation and warranty by the Company or
the Association to Capital Resources as to the matters covered thereby with the
same effect as if such representation and warranty were set forth herein.
SECTION 5. Capital Resources represents and warrants to the
Company and the Association that:
(a) Capital Resources is a corporation and is validly existing
in good standing under the laws of the District of Columbia with full power and
authority to provide the services to be furnished to the Company and the
Association hereunder.
(b) The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action on the part of Capital Resources, and this
Agreement has been duly and validly executed and delivered by Capital Resources
and is the legal, valid and binding agreement of Capital Resources, enforceable
in accordance with its terms.
(c) Each of Capital Resources and its employees, agents and
representatives who shall perform any of the services hereunder shall be duly
authorized and empowered, and shall have all licenses, approvals and permits
necessary, to perform such services and Capital Resources is a registered
selling agent in the jurisdictions listed in Exhibit A hereto and will remain
registered in such jurisdictions in which the Company is relying on such
registration for the sale of the Shares, until the Conversion is consummated or
terminated.
(d) The execution and delivery of this Agreement by Capital Resources,
the consummation
- 9 -
<PAGE>
of the transactions contemplated hereby and compliance with the terms and
provisions hereof will not conflict with, or result in a breach of, any of the
terms, provisions or conditions of, or constitute a default (or event which with
notice or lapse of time or both would constitute a default) under, the
certificate of incorporation of Capital Resources or any agreement, indenture or
other instrument to which Capital Resources is a party or by which its property
is bound, or law or regulation by which Capital Resources is bound.
(e) Funds received by Capital Resources to purchase Common
Stock will be handled in accordance with Rule 15c2-4 under the Securities
Exchange Act of 1934, as amended.
SECTION 6. Covenants of the Company and Association. The
Company and the Association hereby jointly and severally covenant with Capital
Resources as follows:
(a) The Company has filed the Registration Statement with the
Commission. The Company will not, at any time after the date the Registration
Statement is declared effective, file any amendment or supplement to the
Registration Statement without providing Capital Resources and its counsel
reasonable time to review such amendment or file any amendment or supplement to
which amendment Capital Resources or its counsel shall reasonably object.
(b) The Association has filed the Conversion Application with
the OTS. The Association will not, at any time after the date the Conversion
Application is approved, file any amendment or supplement to the Conversion
Application without providing Capital Resources and its counsel an opportunity
to review such amendment or supplement or file any amendment or supplement to
which amendment or supplement Capital Resources or its counsel shall reasonably
object.
(c) The Company and the Association will use their best
efforts to cause any post-effective amendment to the Registration Statement to
be declared effective by the Commission and any post-effective amendment to the
Conversion Application to be approved by the OTS and will immediately upon
receipt of any information concerning the events listed below notify Capital
Resources and promptly confirm the notice in writing: (i) when the Registration
Statement, as amended, has become effective; (ii) when the Conversion
Application, as amended, has been approved by the OTS; (iii) of the receipt of
any comments from the Commission, the OTS or the FDIC or any other governmental
entity with respect to the Conversion or the transactions contemplated by this
Agreement; (iv) of the request by the Commission, the OTS or the FDIC or any
other governmental entity for any amendment or supplement to the Registration
Statement or for additional information; (v) of the issuance by the Commission,
the OTS, the FDIC or any other governmental entity of any order or other action
suspending the Subscription or Public Offerings or the use of the Registration
Statement or the Offering Prospectus or any other filing of the Company and the
Association under the Conversion Regulations or other applicable law, or the
threat of any such action; (vi) the issuance by the Commission, the OTS or the
FDIC, or any other state authority, of any stop order suspending the
effectiveness of the Registration Statement or of the initiation or threat of
initiation or threat of any proceedings for that purpose; or (vii) of the
occurrence of any event mentioned in paragraph (h) below. The Company and the
Association will make every reasonable effort to prevent the issuance by the
Commission, the OTS or the FDIC, or any other state authority of any such order
and, if any such order shall at any time be issued, to obtain the lifting
thereof at the earliest possible time.
(d) The Company and the Association will provide Capital
Resources and its counsel notice of its intention to file, and reasonable time
to review prior to filing any amendment or supplement to the Conversion
Application or the Holding Company Application and will not file any such
amendment or supplement to which Capital Resources shall reasonably object or
which shall be reasonably disapproved by its
- 10 -
<PAGE>
counsel.
(e) The Company and the Association will deliver to Capital
Resources and to its counsel two conformed copies of each of the following
documents, with all exhibits: the Conversion Application and the Holding Company
Application, as originally filed and of each amendment or supplement thereto,
and the Registration Statement, as originally filed and each amendment thereto.
Further, the Company and the Association will deliver such additional copies of
the foregoing documents to counsel for Capital Resources as may be required for
any NASD and blue sky filings. In addition, the Company and the Association will
also deliver to Capital Resources such number of copies of the Offering
Prospectus, as amended or supplemented, as Capital Resources may reasonably
request.
(f) The Company will furnish to Capital Resources, from time
to time during the period when the Offering Prospectus (or any later prospectus
related to this Offering) is required to be delivered under the 1933 Act or the
Securities Exchange Act of 1934 (the "1934 Act"), such number of copies of such
prospectus (as amended or supplemented) as Capital Resources may reasonably
request for the purposes contemplated by the 1933 Act or the 1934 Act or the
respective applicable rules and regulations of the Commission thereunder. The
Company authorizes Capital Resources to use the Offering Prospectus (as amended
or supplemented, if amended or supplemented) for any lawful manner in connection
with the sale of the Shares by Capital Resources.
(g) The Company and the Association will comply in all
material respects with any and all terms, conditions, requirements and
provisions with respect to the Conversion and the transactions contemplated
thereby imposed by the Commission, by applicable state law and regulations, and
by the 1933 Act, the 1934 Act and the rules and regulations of the Commission
promulgated under such statutes, to be complied with prior to or subsequent to
the Closing Date and when the Offering Prospectus is required to be delivered,
the Company and the Association will comply in all material respects, at their
own expense, with all requirements imposed upon them by the OTS, the Conversion
Regulations, the FDIC, the Commission, by applicable state law and regulations
and by the 1933 Act, the 1934 Act and the rules and regulations of the
Commission promulgated under such statutes, including, without limitation, Rule
10b-6 under the 1934 Act, in each case as from time to time in force, so far as
necessary to permit the continuance of sales or dealing in shares of Common
Stock during such period in accordance with the provisions hereof and the
Offering Prospectus.
(h) If, at any time during the period when the Offering
Prospectus relating to the Shares is required to be delivered, any event
relating to or affecting the Company or the Association shall occur, as a result
of which it is necessary or appropriate, in the reasonable opinion of counsel
for the Company and the Association or in the reasonable opinion of Capital
Resources' counsel, to amend or supplement the Registration Statement or
Offering Prospectus in order to make the Registration Statement or Offering
Prospectus not misleading in light of the circumstances existing at the time it
is delivered to a purchaser, the Company and the Association will, at their
expense, forthwith prepare, file with the Commission and the OTS and furnish to
Capital Resources a reasonable number of copies of any amendment or amendments
of, or a supplement or supplements to, the Registration Statement or Offering
Prospectus (in form and substance reasonably satisfactory to Capital Resources
and its counsel after a reasonable time for review) which will amend or
supplement the Registration Statement or Offering Prospectus so that as amended
or supplemented it will not contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in light of the circumstances existing at the time the Offering Prospectus
reasonably is delivered to a purchaser, not misleading. For the purpose of this
Agreement, the Company and the Association each will timely furnish to Capital
Resources such information with respect to itself as Capital Resources may from
time to time request.
(i) The Company and the Association will take all necessary
actions, in cooperation with Capital Resources, and furnish to whomever Capital
Resources may direct, such information as may be required
- 11 -
<PAGE>
to qualify or register the Shares for offering and sale by the Company under the
applicable securities or blue sky laws of such jurisdictions in which the shares
are required under the Conversion Regulations to be sold or as Capital Resources
may reasonably designate and as reasonably agreed to by the Association;
provided, however, that the Company shall not be obligated to file any general
consent to service of process or to qualify to do business in any jurisdiction
in which it is not so qualified. In each jurisdiction where any of the Shares
shall have been qualified or registered as above provided, the Company will make
and file such statements and reports in each fiscal period as are or may be
required by the laws of such jurisdiction.
(j) The liquidation account for the benefit of account holders
with account balances of $50 or more as of the applicable record dates will be
duly established and maintained in accordance with the requirements of the OTS.
(k) The Company and the Association will not sell or issue,
contract to sell or otherwise dispose of, for a period of 180 days after the
date hereof, without Capital Resources' prior written consent, any shares of
Common Stock other than in connection with any plan or arrangement described in
the Offering Prospectus.
(l) The Company shall register its Common Stock under Section
12(g) of the 1934 Act concurrent with the stock offering pursuant to the Plan
and shall request that such registration be effective upon completion of the
Conversion. The Company shall maintain the effectiveness of such registration
for not less than three years or such shorter period as permitted by the OTS.
(m) During the period during which the Company's common stock
is registered under the 1934 Act or for three years from the date hereof,
whichever period is greater, the Company will furnish to its stockholders as
soon as practicable after the end of each fiscal year an annual report
(including a balance sheet and statements of income, stockholders' equity and
changes in financial position or cash flow statement of the Company as at the
end of and for such year, certified by independent public accountants and
prepared in accordance with Regulation S-X under the 1934 Act).
(n) During the period of three years from the date hereof, the
Company will furnish to Capital Resources: (i) a copy of each public report of
the Company furnished to or filed with the Commission under the 1934 Act or any
national securities exchange or system on which any class of securities of the
Company is listed or quoted (including but not limited to, reports on Form 10-K,
10-Q and 8-K and all proxy statements and annual reports to stockholders), a
copy of each public report of the Company mailed to its stockholders or filed
with the Commission or the OTS or any other supervisory or regulatory authority
or any national securities exchange or system on which any class of securities
of the Company is listed or quoted, each press release and material news items
and additional public documents and information with respect to the Company or
the Association as Capital Resources may reasonably request, and (ii) from time
to time, such other publicly available information concerning the Company and
the Association as Capital Resources may reasonably request.
(o) The Company and the Association will use the net proceeds
from the sale of the Shares in the manner set forth in the Offering Prospectus
under the caption "Use of Proceeds."
(p) Other than as permitted by the Conversion Regulations, the
1933 Act, the 1933 Act Regulations and the laws of any state in which the Shares
are qualified for sale, neither the Company nor the Association will distribute
any prospectus, offering circular or other offering material in connection with
the offer and sale of the Shares.
(q) The Company will make generally available to its security
holders as soon as
- 12 -
<PAGE>
practicable, but not later than 90 days after the close of the period an
earnings statement (in form complying with the provisions of Rule 158 under the
1933 Act) covering a twelve-month period beginning not later than the first day
of the Company's fiscal quarter next following the effective date (as defined in
said Rule 158) of the Registration Statement.
(r) The Company will maintain quotation of the shares in the
over-the-counter market effective on the Closing Date.
(s) The Association will maintain appropriate arrangements for
depositing all funds received from persons mailing subscriptions for or orders
to purchase Shares in the Offering on an interest-bearing basis at the rate
described in the Offering Prospectus until the Closing Date and satisfaction of
all conditions precedent to the release of the Association's obligation to
refund payments received from persons subscribing for or ordering Shares in the
Offering in accordance with the Plan as described in the Offering Prospectus or
until refunds of such funds have been made to the persons entitled thereto or
withdrawal authorizations canceled in accordance with the Plan and as described
in the Offering Prospectus. The Association will maintain such records of all
funds received to permit the funds of each subscriber to be separately insured
by the FDIC (to the maximum extent allowable) and to enable the Association to
make the appropriate refunds of such funds in the event that such refunds are
required to be made in accordance with the Plan and as described in the Offering
Prospectus.
(t) The Company will register as a savings and loan holding
company under the HOLA within the period required by applicable law.
(u) The Company and the Association will take such actions and
furnish such information as are reasonably requested by Capital Resources in
order for Capital Resources to ensure compliance with the "Interpretation of the
Board of Governors of the NASD on Free Riding and Withholding."
(v) The Company and the Association have conducted their
businesses in compliance in all material respects with all applicable federal
and state laws, rules, regulations, decisions, directives and orders, including
all decisions, directives and orders of the Commission, the OTS and the FDIC.
(w) The Association will not amend the Plan of Conversion
without Capital Resources' prior written consent in any manner that, in the
reasonable opinion of Capital Resources, would materially and adversely affect
the sale of the Shares or the terms of this Agreement except as to comply with
any regulatory requirement.
(x) The Company shall advise Capital Resources, if necessary,
as to the allocation of the Shares in the event of an oversubscription and shall
provide Capital Resources with any information necessary to assist Capital
Resources in allocating the Shares in such event and such information shall be
accurate and reliable.
(y) The Company and the Association shall promptly advise
Capital Resources in writing of all relationships or facts which would render
persons subscribing or purchasing Shares in the Conversion Associates or Acting
in concert@ within the meaning of the Conversion Regulations, and shall further
advise Capital Resources of all appropriate limitations on the purchase of
shares by such persons imposed by the Conversion Regulations and such
information furnished shall be accurate and reliable in all material respects.
SECTION 7. Payment of Expenses. Whether or not this Agreement becomes
effective, the Conversion is completed or the sale of the Shares by the Company
is consummated, the Company and
- 13 -
<PAGE>
Association jointly and severally agree to pay directly for or to reimburse
Capital Resources for (to the extent that such expenses have been reasonably
incurred by Capital Resources) (a) all filing fees and expenses incurred in
connection with the qualification or registration of the Shares for offer and
sale by the Company under the securities or blue sky laws of any jurisdictions
Capital Resources and the Company may agree upon pursuant to subsection (i) of
Section 6 above, including counsel fees paid or incurred by the Company, the
Association or Capital Resources in connection with such qualification or
registration or exemption from qualification or registration; (b) all filing
fees in connection with all filings with the NASD; (c) any stock issue or
transfer taxes which may be payable with respect to the sale of the Shares to
purchasers in the Conversion; (d) reasonable and necessary expenses of the
Conversion, including but not limited to, attorneys' fees, transfer agent,
registrar and other agent charges, fees relating to auditing and accounting or
other advisors and costs of printing all documents necessary in connection with
the Conversion; and (e) out-of-pocket expenses incurred by Capital Resources in
connection with the Conversion or any of the transactions contemplated hereby,
including, without limitation, the fees of its attorneys, and reasonable
communication and travel expenses, as limited by Section 2 hereof.
SECTION 8. Conditions to Capital Resources' Obligations.
Capital Resources' obligations hereunder, as to the Shares to be delivered at
the Closing Date, are subject to the condition that all representations and
warranties and other statements of the Company and the Association herein are,
at and as of the commencement of the Offering and at and as of the Closing Date,
true and correct in all material respects, the condition that the Company and
the Association shall have performed in all material respects all of their
obligations hereunder to be performed on or before such dates, and to the
following further conditions:
(a) At the Closing Date, the Company and the Association will
have completed the conditions precedent to, and shall have conducted the
Conversion in all material respects in accordance with, the Plan, the Conversion
Regulations and all other applicable laws, regulations, decisions and orders,
including all terms, conditions, requirements and provisions precedent to the
Conversion imposed upon them by the OTS.
(b) The Registration Statement shall have been declared
effective by the Commission and the Conversion Application approved by the OTS
not later than 5:30 p.m. (eastern time) on the date of this Agreement, or with
Capital Resources' consent at a later time and date; and at the Closing Date no
stop order suspending the effectiveness of the Registration Statement shall have
been issued under the 1933 Act or proceedings therefore initiated or threatened
by the Commission or any state authority, and no order or other action
suspending the authorization of the Offering Prospectus or the consummation of
the Conversion shall have been issued or proceedings therefore initiated or, to
the Company's or Association's knowledge, threatened by the Commission, the OTS,
the FDIC or any state authority.
(c) At the Closing Date, Capital Resources shall have
received:
(1) The favorable opinion, dated as of the Closing Date
addressed to Capital Resources and for its benefit, of Malizia, Spidi, Sloane &
Fisch, P.C., counsel for the Company and the Association dated the Closing Date,
addressed to Capital Resources and in form and substance to the effect that:
(i) The Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of the Commonwealth of
Pennsylvania.
(ii) The Company has corporate power and authority to own,
lease and operate its properties and to conduct its business as described in the
Registration Statement and the Offering Prospectus; and the Company is qualified
to do business in Pennsylvania, to such counsel's knowledge based on the
conferences and document review specified in item (xiii) below, the only state
in which it is doing business.
- 14 -
<PAGE>
(iii) The Association was a duly organized and is a validly
existing federally-chartered savings association in mutual form of organization
and upon the Conversion will become a duly organized and validly existing
federally-chartered savings association in capital stock form of organization,
in both instances duly authorized to conduct its business and own its property
as described in the Registration Statement; and the Association is in good
standing under the laws of the United States and is duly qualified as a foreign
corporation to transact business and is in good standing in each jurisdiction in
which its ownership of property or leasing of properties or the conduct of its
business requires such qualification unless the failure to be so qualified in
one or more such jurisdictions would not have a material adverse effect on the
condition, financial or otherwise, or the business, operations or income or
business prospects of the Association. The activities of the Association as
described in the Offering Prospectus, insofar as they are material to the
operations and financial condition of the Association, are permitted by the
rules, regulations and resolutions and practices of the OTS or the FDIC and any
other federal or state authorities.
(iv) The Association is a member of the FHLBPB, and the
deposit accounts of the Association are insured by the FDIC up to the maximum
amount allowed under law and to the best of such counsel's knowledge no
proceedings for the termination or revocation of such insurance are pending or
threatened; and the description of the liquidation account as set forth in the
Registration Statement and the Offering Prospectus under the caption "The
Conversion - Effects of Conversion to Stock Form on Depositors and Borrowers of
the Association - Liquidation Rights in Proposed Converted Institution" has been
reviewed by such counsel and is accurate in all material respects.
(v) Upon consummation of the Conversion, the authorized,
issued and outstanding capital stock of the Company will be as set forth in the
Registration Statement and the Offering Prospectus under the caption
"Capitalization, " and no shares of Common Stock have been issued prior to the
Closing Date; at the time of the Conversion, the Shares subscribed for pursuant
to the Offerings will have been duly and validly authorized for issuance, and
when issued and delivered by the Company pursuant to the Plan against payment of
the consideration calculated as set forth in the Plan, will be duly and validly
issued and fully paid and non-assessable; and the issuance of the Shares is not
subject to preemptive rights.
(vi) The issuance and sale of the common stock of the
Association to the Company have been duly and validly authorized by all
necessary corporate action on the part of the Company and the Association and,
upon payment therefor in accordance with the terms of the Plan of Conversion,
will be duly and validly issued, fully paid and non-assessable and will be owned
of record by the Company, free and clear of any mortgage, pledge, lien,
encumbrance or claim (legal or equitable).
(vii) The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action on the part of the Company and the
Association; and this Agreement is a valid and binding obligation of the Company
and the Association, enforceable in accordance with its terms (except as the
enforceability thereof may be limited by Association bankruptcy, insolvency,
moratorium, reorganization or similar laws relating to or affecting the
enforcement of creditors' rights generally or the rights of creditors of savings
associations or savings and loan holding companies, the accounts of whose
subsidiaries are insured by the FDIC or by general equity principles, regardless
of whether such enforceability is considered in a proceeding in equity or at
law, and except to the extent, if any, that the provisions of Sections 9 and 10
hereof may be unenforceable as against public policy).
(viii) The Plan has been duly adopted by the required vote of
the Directors of the Company and the Association and members of the Association.
(ix) Subject to the satisfaction of the conditions to the OTS's
approval of the Conversion
- 15 -
<PAGE>
and the Company's application to acquire the Association, no further approval,
registration, authorization, consent or other order of any regulatory agency,
public board or body is required in connection with the execution and delivery
of this Agreement, the issuance of the Shares and the consummation of the
Conversion, except as may be required under the regulations of the NASD. The
Conversion has been consummated in all material respects in accordance with all
applicable provisions of the HOLA, the Conversion Regulations, Federal and State
law and all applicable rules and regulations promulgated thereunder.
(x) The Conversion Application has been approved by the OTS.
The OTS has issued its order of approval under the savings and loan holding
company provisions of the HOLA, and the purchase by the Company of all of the
issued and outstanding capital stock of the Association has been authorized by
the OTS and no action has been taken, or to counsel's knowledge is pending or
threatened, to revoke any such authorization or approval.
(xi) The Registration Statement is effective under the 1933
Act and no stop order suspending the effectiveness has been issued under the
1933 Act or proceedings therefor initiated or, to counsel's knowledge,
threatened by the Commission.
(xii) At the time the Conversion Application, including the
Offering Prospectus contained therein, was approved, the Conversion Application
including the Offering Prospectus contained therein (as amended or supplemented,
if so amended or supplemented) complied as to form in all material respects with
the requirements of all applicable federal laws and the rules, regulations,
decisions and orders of the OTS (except as to the financial statements, other
financial data and stock valuation information included therein as to which such
counsel need express no opinion); to the best of such counsel's knowledge, based
on conferences with management of and the independent accountants for the
Company and the Association, and on such investigation of the corporate records
of the Company and the Association as such counsel conducted in connection with
the preparation of the Registration Statement and the Conversion Application,
all material documents and exhibits required to be filed with the Conversion
Application (as amended or supplemented, if so amended or supplemented) have
been so filed. The description in the Conversion Application and the Offering
Prospectus contained therein of such documents and exhibits is accurate in all
material respects and fairly presents the information required to be shown. To
such counsel's knowledge, no person has sought to obtain regulatory or judicial
review of the final action of the OTS approving the Conversion Application or in
approving the Holding Company Application.
(xiii) At the time that the Registration Statement became
effective, (i) the Registration Statement (as amended or supplemented if so
amended or supplemented) (other than the financial statements and other
financial and statistical data and stock valuation information included therein,
as to which no opinion need be rendered), complied as to form in all material
respects with the requirements of the 1933 Act and the 1933 Act Regulations and
(ii) the Offering Prospectus (other than the financial statements and other
financial and statistical data and the stock valuation information included
therein, as to which no opinion need be rendered) complied as to form in all
material respects with the requirements of the 1933 Act, the 1933 Act
Regulations, Conversion Regulations and Federal and State law (other than state
blue sky law as to which we express no opinion). To the best of such counsel's
knowledge based on the conferences and document review specified in item (xii)
above, all material documents and exhibits required to be filed with the
Registration Statement (as amended or supplemented, if so amended or
supplemented) have been so filed. The description in the Registration Statement
and the Offering Prospectus of such documents and exhibits is accurate in all
material respects and fairly presents the information required to be shown.
(xiv) During the course of such counsel's representation of
the Company and the Association, nothing has come to such counsel's attention
that caused it to believe that (i) the Company and the Association
- 16 -
<PAGE>
have not conducted the Conversion, in all material respects, in accordance with
all applicable requirements of the Plan and applicable law, and (ii) the Plan,
the Conversion Application, the Registration Statement and the Offering
Prospectus (other than the financial statements and other financial and
statistical data and the stock valuation information included therein as to
which no opinion need be rendered) do not comply in all material respects with
all applicable laws, rules, regulations, decisions and orders including, but not
limited to, the Conversion Regulations, the HOLA, the 1933 Act and 1933 Act
Regulations and all other applicable laws, regulations, decisions and orders,
including all applicable terms, conditions, requirements and provisions
precedent to the Conversion imposed upon it by the OTS, the Commission and the
FDIC, if any.
(xv) The terms and provisions of the Common Stock of the
Company conform to the description thereof contained in the Registration
Statement and the Offering Prospectus, and the form of certificates used to
evidence the Shares are in due and proper form.
(xvi) To such counsel's knowledge, there are no legal or
governmental proceedings pending or threatened which are required to be
disclosed in the Registration Statement and the Offering Prospectus, other than
those disclosed therein, and all pending legal and governmental proceedings to
which the Company or the Association is a party or of which any of their
property is the subject which are not described in the Registration Statement
and the Offering Prospectus, including ordinary routine litigation incidental to
the business, are, considered in the aggregate, not material; provided that for
this purpose, any litigation or governmental proceeding is not considered to be
"threatened" unless the potential litigant or governmental authority has
manifested to the management of the Company or the Association, or to such
counsel, a present intention to initiate such litigation or proceeding.
(xvii) To such counsel's knowledge, the Company and the
Association have obtained all licenses, permits and other governmental
authorizations required for the conduct of their respective businesses, except
where the failure to have such licenses, permits or authorizations would not
have a material adverse effect on the business, financial condition operations
or income or business prospects of the Company and the Association, and all such
licenses, permits and other governmental authorizations are in full force and
effect, and the Company and the Association are in all material respects
complying therewith.
(xviii) To such counsel's knowledge, neither the Company nor
the Association is in contravention of its certificate of incorporation or its
charter, respectively, or its bylaws (and the Association will not be in
contravention of its charter or bylaws in stock form upon consummation of the
Conversion) or, to such counsel's knowledge, in default or violation of any
obligation, agreement, covenant or condition contained in any material contract,
indenture, mortgage, loan agreement, note, lease or other instrument to which it
is a party or by which it or its property may be bound which default or
violation would be material to the business of the Company and the Association
considered as one enterprise; the execution and delivery of this Agreement by
the Company and the Association, the incurring of the obligations herein set
forth and the consummation of the transactions contemplated herein have been
duly authorized by all necessary corporate action of the Company and the
Association, and, to such counsel default or violation, will not constitute a
material breach of, or default under, or result in the creation or imposition of
any material lien, charge or encumbrance upon any property or assets of the
Company or the Association which are material to their business considered as
one enterprise, pursuant to any contract, indenture, mortgage, loan agreement,
note, lease or other instrument to which the Company or the Association is a
party or by which any of them may be bound, or to which any of the property or
assets of the Company or the Association is subject. In addition, such action
will not result in any default or violation of the provisions of the certificate
of incorporation or bylaws of the Company or the Association or to such
counsel's knowledge, any applicable law, act, regulation or order or court
order, writ, injunction or decree.
The charter of the Association in stock form has been approved by the OTS.
- 17 -
<PAGE>
(xix) To such counsel's knowledge, the Company and the
Association have good and marketable title to all properties and assets
described in the Registration Statement as owned by them, free and clear of all
liens, charges, encumbrances or restrictions, except such as are described in
the Registration Statement or are not material in relation to the business of
the Company and the Association considered as one enterprise; and to the best of
such counsel's knowledge, all of the leases and subleases material to the
business of the Company and the Association under which the Company and the
Association hold properties, as described in the Registration Statement, are in
full force and effect.
(xx) The Company and the Association are not in violation of
any directive from the OTS or the FDIC to make any material change in the method
of conducting their business and the Company and the Association have conducted
and are conducting their business so as to comply in all material respects with
all applicable statutes and regulations (including, without limitation,
regulations, decisions, directives and orders of the OTS and the FDIC).
(xxi) The information in the Registration Statement and
Offering Prospectus under the captions "Regulation," "Restrictions on
Acquisitions of Stock and Related Takeover Defensive Provisions," "The
Conversion," "Description of Capital Stock" and the information in response to
Items 7(d)(l), 7(f), 7(g) and 7(i) of the Form PS of the Conversion Regulations,
to the extent that it constitutes matters of law, summaries of legal matters,
documents or proceedings, or legal conclusions, has been reviewed by such
counsel and is correct in all material respects (except as to the financial
statements and other financial data included therein as to which such counsel
need express no opinion).
In rendering such opinion, such counsel may rely (A) as to
matters involving the application of laws of any jurisdiction other than the
United States, to the extent such counsel deems proper and specified in such
opinion satisfactory to Capital Resources, upon the opinion of other counsel of
good standing (providing that such counsel states that Capital Resources is
justified in relying upon such specified opinion or opinions), and (B) as to
matters of fact, to the extent such counsel deems proper, on certificates of
responsible officers of the Company and the Association and public officials
(but not on conclusions of law which may be set forth in said certificates);
provided copies of any such opinion(s) or certificates are delivered pursuant
hereto or to Capital Resources together with the opinion to be rendered
hereunder by special counsel to the Company and the Association. Such counsel
may assume that any agreement is the valid and binding obligation of any parties
to such agreement other than the Company or the Association.
(2) The letter of Malizia, Spidi, Sloane & Fisch, P.C.,
counsel for the Company and the Association addressed to Capital Resources,
dated the Closing Date, in form and substance to the effect that:
During the preparation of the Conversion Application, the
Registration Statement and the Offering Prospectus, such counsel participated in
conferences with management of, and the independent public accountants for the
Company and the Association. Based upon such conferences and a review of
corporate records of the Company and the Association as such counsel conducted
in connection with the preparation of the Registration Statement and Conversion
Application, nothing has come to their attention that would lead them to believe
that the Conversion Application, the Registration Statement, the Offering
Prospectus, or any amendment or supplement thereto (other than the financial
statements and other financial and statistical data and stock valuation
information included therein, as to which such counsel need express no view),
contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.
- 18 -
<PAGE>
(3) The favorable opinion, dated as of the Closing Date, of
Steele, Silcox, & Browning, P.C., counsel to Capital Resources, with respect to
such matters as Capital Resources may reasonably require. Such opinion may rely
upon the opinions of counsel to the Company and the Association, and as to
matters of fact, upon certificates of officers and directors of the Company and
the Association delivered pursuant hereto or as such counsel shall reasonably
request.
(d) At the Closing Date, counsel to Capital Resources shall
have been furnished with such documents and opinions as they may reasonably
require for the purpose of enabling them to render the opinion as herein
contemplated and related proceedings or in order to evidence the occurrence or
completeness of any of the representations or warranties, or the fulfillment of
any of the conditions, herein contained.
(e) At the Closing Date, Capital Resources shall receive a
certificate of the Chief Executive Officer and the Chief Financial Officer of
the Company and of the Chief Executive Officer and Chief Financial Officer of
the Association, dated as of such Closing Date, to the effect that: (i) they
have carefully examined the Offering Prospectus and, in their opinion, at the
time the Offering Prospectus became authorized for final use, the Offering
Prospectus did not contain an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading; (ii)
since the date the Offering Prospectus became authorized for final use, in their
opinion no event has occurred which should have been set forth in an amendment
or supplement to the Offering Prospectus which has not been so set forth,
including specifically, but without limitation, any material adverse change in
the condition, financial or otherwise, or in the earnings, capital, properties,
business prospects or business affairs of the Company or the Association, and
the conditions set forth in this Section 8 have been satisfied; (iii) since the
respective dates as of which information is given in the Registration Statement
and the Offering Prospectus, there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, capital, properties,
business affairs or business prospects of the Company or the Association,
independently, or of the Company and the Association considered as one
enterprise, whether or not arising in the ordinary course of business; (iv) to
the best knowledge of such officers the representations and warranties in
Section 4 are true and correct with the same force and effect as though
expressly made at and as of the Closing Date; (v) the Company and the
Association have complied with all material agreements and satisfied, in all
material respects at or prior to the Closing Date, all obligations required to
be met by such date and will in all material respects comply with all
obligations to be satisfied by them after Conversion; (vi) no stop order
suspending the effectiveness of the Registration Statement has been initiated
or, to the best knowledge of the Company or Association, threatened by the
Commission or any state authority; (vii) no order suspending the Subscription or
Public Offerings, the Conversion, the acquisition of all of the shares of the
Association by the Company or the effectiveness of the Offering Prospectus has
been issued and to the best knowledge of the Company or Association, no
proceedings for that purpose have been initiated or threatened by the OTS, the
Commission, the FDIC, or any state authority; and (viii) to the best of their
knowledge, no person has sought to obtain review of the final action of the OTS
approving the Plan.
(f) Prior to and at the Closing Date: (i) in the reasonable
opinion of Capital Resources, there shall have been no material adverse change
in the condition, financial or otherwise, or in the earnings, or the business
affairs or business prospects of the Company or the Association independently,
or of the Company or the Association, considered as one enterprise, since the
latest dates as of which such condition is set forth in the Offering Prospectus,
except as referred to therein; (ii) there shall have been no material
transaction entered into by the Company or the Association from the latest date
as of which the financial condition of the Company or the Association is set
forth in the Offering Prospectus other than transactions referred to or
contemplated therein; (iii) the Company or the Association shall not have
received from the OTS or the FDIC any direction (oral or written) to make any
material change in the method of conducting their business with which it has not
complied (which direction, if any, shall have been disclosed to Capital
Resources) and which would reasonably be expected to have a material and adverse
effect on the business, operations or financial condition or income of
- 19 -
<PAGE>
the Company or the Association taken as a whole; (iv) neither the Company nor
the Association shall have been in default (nor shall an event have occurred
which, with notice or lapse of time or both, would constitute a default) under
any provision of and agreement or instrument relating to any material
outstanding indebtedness; (v) no action, suit or proceedings, at law or in
equity or before or by any federal or state commission, board or other
administrative agency, shall be pending, or, to the knowledge of the Company or
the Association, threatened against the Company or the Association or affecting
any of their properties wherein an unfavorable decision, ruling or finding would
reasonably be expected to have a material and adverse effect on the business,
operations, financial condition or income of the Company or the Association,
taken as a whole; and (vi) the Shares have been qualified or registered for
offering and sale under the securities or blue sky laws of the jurisdictions as
Capital Resources shall have requested and as agreed to by the Company.
(g) Concurrently with the execution of this Agreement, Capital
Resources shall receive a letter from GEBA, dated the date hereof and addressed
to Capital Resources: (i) confirming that GEBA is a firm of independent public
accountants within the meaning of the 1933 Act and the 1933 Act Regulations and
12 C.F.R. ss. 571.2(c)(3) and no information concerning its relationship with or
interests in the Company and the Association is required to be disclosed in the
Offering Prospectus by the Conversion Regulations or Item 10 of the Registration
Statement, and stating in effect that in GEBA's opinion the financial statements
of the Association as are included in the Offering Prospectus comply as to form
in all material respects with the applicable accounting requirements of the 1933
Act, the 1934 Act and the related published rules and regulations of the
Commission thereunder and the Conversion Regulations and generally accepted
accounting principles; (ii) stating in effect that, on the basis of certain
agreed upon procedures (but not an audit examination in accordance with
generally accepted auditing standards) consisting of a reading of the latest
available unaudited interim financial statements of the Association prepared by
the Association, a reading of the minutes of the meetings of the Board of
Directors and members of the Association and consultations with officers of the
Association responsible for financial and accounting matters, nothing came to
their attention which caused them to believe that: (A) during the period from
the date of the latest unaudited financial statements included in the Offering
Prospectus to [ , 1998], there has been (1) any increase in the long term debt
of the Association or (2) any increase in non-performing assets (consisting of
accruing loans past due 90 days or more, non-accruing loans and foreclosed
assets) or (3) any decrease in the allowance for loan losses or (4) any decrease
in total equity or (5) a decrease in net income when compared to the like period
in the preceding year or (6) any change in total assets of the Association in an
amount from [December 31, 1997 to , 1998] date greater than [$2,000,000]
(excluding the proceeds of stock subscriptions); and (iii) stating that, in
addition to the audit examination referred to in its opinion included in the
Offering Prospectus and the performance of the procedures referred to in clause
(ii) of this subsection (g), they have compared with the general accounting
records of the Company and/or the Association, as applicable, which are subject
to the internal controls of the Company and/or the Association, as applicable,
accounting system and other data prepared by the Company and/or the Association,
as applicable, directly from such accounting records, to the extent specified in
such letter, such amounts and/or percentages set forth in the Offering
Prospectus as Capital Resources may reasonably request; and they have found such
amounts and percentages to be in agreement therewith (subject to rounding).
(h) At the Closing Date, Capital Resources shall receive a
letter from GEBA, dated the Closing Date, addressed to Capital Resources,
confirming the statements made by its letter delivered by it pursuant to
subsection (g) of this Section 8, except that the "specified date" referred to
in clause (ii)(B) thereof to be a date specified in such letter, which shall not
be more than three business days prior to the Closing Date.
(i) The Company and the Association shall not have sustained
since the date of the latest audited financial statements included in the
Registration Statement and Offering Prospectus any loss or interference with its
business from fire, explosion, flood or other calamity, whether or not covered
by insurance, or from any labor dispute or court or governmental action, order
or decree, otherwise than as set forth or
- 20 -
<PAGE>
contemplated in the Registration Statement and Offering Prospectus, and since
the respective dates as of which information is given in the Registration
Statement and Offering Prospectus, there shall not have been any material change
in the long term debt of the Company or the Association other than debt incurred
in relation to the purchase of Shares by the Company's Tax-Qualified Employee
Plans, or any change, or any development involving a prospective change, in or
affecting the general affairs, management, financial position, stockholders'
equity or results of operations of the Company or the Association, otherwise
than as set forth or contemplated in the Registration Statement and Offering
Prospectus, the effect of which, in any such case described above, is in Capital
Resources' reasonable judgment sufficiently material and adverse as to make it
impracticable or inadvisable to proceed with the Subscription or Public
Offerings or the delivery of the Shares on the terms and in the manner
contemplated in the Offering Prospectus.
(j) At or prior to the Closing Date, Capital Resources shall
receive (i) a copy of the letter from the OTS authorizing the use of the
Offering Prospectus, (ii) a copy of the order from the Commission declaring the
Registration Statement effective, (iii) a copy of a certificate from the OTS
evidencing the good standing of the Association, (iv) certificates of good
standing from the Commonwealth of Pennsylvania evidencing the good standing of
the Company and evidencing that the Company is duly qualified to do business in
Pennsylvania and (v) a copy of the letter from the OTS approving the Company's
Holding Company Application.
(k) As soon as available after the Closing Date, Capital
Resources shall receive a certified copy of the Association's stock charter.
(1) Subsequent to the date hereof, there shall not have
occurred any of the following: (i) a suspension or limitation in trading in
securities generally on the New York Stock Exchange or American Stock Exchange
or in the over-the-counter market, or quotations halted generally on the NASDAQ
National Market, or minimum or maximum prices for trading being fixed, or
maximum ranges for prices for securities being required by either of such
exchanges or the NASD or by order of the Commission or any other governmental
authority; (ii) a general moratorium on the operations of commercial
Associations or federal savings Associations or general moratorium on the
withdrawal of deposits from commercial Associations or federal savings
Associations declared by either federal or state authorities; (iii) the
engagement by the United States in hostilities which have resulted in the
declaration, on or after the date hereof, of a national emergency or war; or
(iv) a material decline in the price of equity or debt securities if, as to
clauses (iii) or (iv), the effect of such hostilities or decline, in Capital
Resources' reasonable judgment, makes it impracticable or inadvisable to proceed
with the Subscription or Public Offerings or the delivery of the Shares on the
terms and in the manner contemplated in the Registration Statement and the
Offering Prospectus.
All such opinions, certifications, letters and documents shall
be in compliance with the provisions hereof only if they are, in the reasonable
opinion of Capital Resources and its counsel, satisfactory to Capital Resources
and its counsel. Any certificates signed by an officer or director of the
Company or the Association and delivered to Capital Resources or its counsel
shall be deemed a representation and warranty by the Company or the Association
to Capital Resources as to the statements made therein.
If any of the conditions specified in this Section shall not
have been fulfilled when and as required by this Agreement, this Agreement and
all of Capital Resources' obligations hereunder may be canceled by Capital
Resources by notifying the Association of such cancellation in writing or by
telegram at any time at or prior to the Closing Date, and any such cancellation
shall be without liability of any party to any other party except as otherwise
provided in Sections 2, 7, 9 and 10 hereof. Notwithstanding the above, if this
Agreement is canceled pursuant to this paragraph, Capital Resources will be
entitled to retain any compensation already received for consulting services
prior to the closing (including reimbursed expenses as provided herein), and the
- 21 -
<PAGE>
Company and the Association jointly and severally agree to reimburse Capital
Resources for all out-of-pocket expenses, (including without limitation the fees
and expenses of Capital Resources' counsel) reasonably incurred by Capital
Resources and Capital Resources' counsel at its normal rates, in connection with
the preparation of the Registration Statement and the Offering Prospectus, and
in contemplation of the proposed Subscription or Public Offerings to the extent
provided for in Sections 2 and 7 hereof.
SECTION 9. Indemnification.
(a) The Company and the Association jointly and severally
agree to indemnify and hold harmless Capital Resources, its officers, directors,
agents and employees and each person, if any, who controls or is under common
control with Capital Resources within the meaning of Section 15 of the 1933 Act
or Section 20(a) of the 1934 Act, against any and all loss, liability, claim,
damage or expense whatsoever (including but not limited to settlement expenses),
joint or several, that Capital Resources or any of them may suffer or to which
Capital Resources and any such persons upon written demand for any expenses
(including fees and disbursements of counsel) incurred by Capital Resources or
any of them in connection with investigating, preparing or defending any
actions, proceedings or claims (whether commenced or threatened) to the extent
such losses, claims, damages, liabilities or actions (i) arise out of or are
based upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment or supplement
thereto), preliminary or final Offering Prospectus (or any amendment or
supplement thereto), the Conversion Application (including any document required
to be furnished therewith), or any Blue Sky application or other instrument or
document of the Company or the Association or based upon written information
supplied by the Company or the Association filed in any state or jurisdiction to
register or qualify any or all of the Shares or the subscription rights
applicable thereto under the securities laws thereof (collectively, the "Blue
Sky Application"), or any application or other document, advertisement, oral
statement, or communication ("Sales Information") prepared, made or executed by
or on behalf of the Company with its consent or based upon written or oral
information furnished by or on behalf of the Company or the Association, whether
or not filed in any jurisdiction in order to qualify or register the Shares
under the securities laws thereof; (ii) arise out of or are based upon the
omission or alleged omission to state in any of the foregoing documents or
information, a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading; or, (iii) arise from any theory of liability whatsoever
relating to or arising from or based upon the Registration Statement (or any
amendment or supplement thereto), preliminary or final Offering Prospectus (or
any amendment or supplement thereto), the Conversion Application (including any
document required to be furnished therewith), any Blue Sky Application or Sales
Information or other documentation distributed in connection with the
Conversion; provided, however, that no indemnification is required under this
paragraph (a) to the extent such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue material statements or alleged untrue
material statements in, or material omission or alleged material omission from,
the Registration Statement (or any amendment or supplement thereto), the
Conversion Application (including any document required to be furnished
therewith) , any Blue Sky Application, the preliminary or final Offering
Prospectus (or any amendment or supplement thereto), or Sales Information made
in reliance upon and in conformity with written information furnished to the
Company or the Association by Capital Resources regarding Capital Resources
expressly for use under the captions "The Conversion - Marketing Arrangements"
or "Public Offering and Direct Community Offering" in the Offering Prospectus
nor is indemnification required for material oral misstatements made by Capital
Resources, which are not based upon information provided by the Association or
the Company orally or in writing or based on information contained in the
Registration Statement (or any amendment or supplement thereto), preliminary or
final Offering Prospectus (or any amendment or supplement thereto), the
Conversion Application (including any document required to be furnished
therewith), any Blue Sky Application or Sales Information distributed in
connection with the Conversion.
(b) Capital Resources agrees to indemnify and hold harmless the Company
and the
- 22 -
<PAGE>
Association, their directors and officers, agents, servants and employees and
each person, if any, who controls the Company or the Association within the
meaning of Section 15 of the 1933 Act or Section 20(a) of the 1934 Act against
any and all loss, liability, claim, damage or expense whatsoever (including but
not limited to settlement expenses), joint or several which they, or any of
them, may suffer or to which they, or any of them, may become subject under all
applicable federal and state laws or otherwise, and to promptly reimburse the
Company, the Association and any such persons upon written demand for any
expenses (including fees and disbursements of counsel) incurred by them, or any
of them, in connection with investigating, preparing or defending any actions,
proceedings or claims (whether commenced or threatened) to the extent such
losses, claims, damages, liabilities or actions arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement (or any amendment of supplement thereto), or the
preliminary or final Offering Prospectus (or any amendment or supplement
thereto), or the Conversion Application or any Blue Sky Application or Sales
Information or are based upon the omission or alleged omission to state in any
of the foregoing documents a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, however, that Capital
Resources obligations under this Section 9(b) shall exist only if and only to
the extent that such untrue statement or alleged untrue statement was made in,
or such material fact or alleged material fact was omitted from, the
Registration Statement (or any amendment or supplement thereto), the preliminary
or final Offering Prospectus (or any amendment or supplement thereto), or the
Conversion Application, any Blue Sky Application or Sales Information in
reliance upon and in conformity with written information furnished to the
Company or the Association by Capital Resources regarding Capital Resources
expressly for use under the caption "The Conversion - Marketing Arrangements" or
"Public Offering and Direct Community Offering" in the Offering Prospectus or in
the event of oral misstatements made by Capital Resources, which are not based
upon information provided by the Association or the Company orally or in writing
or based on information contained in the Registration Statement (or any
amendment or supplement thereto), preliminary or final Offering Prospectus (or
any amendment or supplement thereto), the Conversion Application, any Blue Sky
Application or Sales Information distributed in connection with the Conversion.
In addition, Capital Resources will not be liable under the foregoing provisions
to the extent that the loss, claim, damage, liability or actions is expressly
found in a final judgment by a court of competent jurisdiction to have resulted
from the Association's or the Company's bad faith or gross negligence.
(c) Each indemnified party shall give prompt written notice to
each indemnifying party of any action, proceeding, claim (whether commenced or
threatened), or suit instituted against it in respect of which indemnity may be
sought hereunder, but failure to so notify an indemnifying party shall not
relieve it from any liability which it may have on account of this Section 9 or
otherwise. An indemnifying party may participate at its own expense in the
defense of such action. In addition, if it so elects within a reasonable time
after receipt of such notice, an indemnifying party, jointly with any other
indemnifying parties receiving such notice, may assume defense of such action
with counsel chosen by it and approved by the indemnified parties that are
defendants in such action, unless such indemnified parties reasonably object to
such assumption on the ground that there may be legal defenses available to them
that are different from or in addition to those available to such indemnifying
party. If an indemnifying party assumes the defense of such action, the
indemnifying parties shall not be liable for any fees and expenses of counsel
for the indemnified parties incurred thereafter in connection with such action,
proceeding or claim, other than reasonable costs of investigation. In no event
shall the indemnifying parties be liable for the fees and expenses of more than
one separate firm of attorneys (and any special counsel that said firm may
retain) for all indemnified parties in connection with any one action,
proceeding or claim or separate but similar or related actions, proceedings or
claims in the same jurisdiction arising out of the same general allegations or
circumstances.
(d) The agreements contained in this Section 9 and in Section
10 hereof and the representations and warranties of the Company and the
Association set forth in this Agreement shall remain
- 23 -
<PAGE>
operative and in full force and effect regardless of: (i) any investigation made
by or on behalf of Capital Resources or its officers, directors or controlling
persons, agents or employees or by or on behalf of the Company or the
Association or any officers, directors or controlling persons, agents or
employees of the Company or the Association or any controlling person, director
or officer of the Company or the Association; (ii) delivery of and payment
hereunder for the Shares; or (iii) any termination of this Agreement.
(e) No indemnification by the Association under Section 9(a)
hereof nor contribution under Section 10 hereof shall be effective if the same
shall be deemed to be in violation of any law, rule or regulation applicable to
the Association including, without limitation, Section 23A of the Federal
Reserve Act. If the indemnification or contribution by the Association is not
effective pursuant to the preceding sentence, then the indemnification by
Capital Resources pursuant to Section 9(b) shall be given only to the Company,
its directors and officers, agents, servants and employees and not to the
Association, its directors and officers, agents, servants and employees and the
Association shall not be entitled to any contribution from Capital Resources
pursuant to Section 10.
SECTION 10. Contribution. In order to provide for just and
equitable contribution in circumstances in which the indemnification provided
for in Section 9 is due in accordance with its terms but is for any reason
unavailable as a result of Section 9(e) or held by a court to be unavailable
from the Company, the Association or Capital Resources, the Company, the
Association and Capital Resources shall contribute to the aggregate losses,
claims, damages and liabilities (including any investigation, legal and other
expenses incurred in connection with, and any amount paid in settlement of any
action, suit or proceeding of any claims asserted, but after deducting any
contribution received by the Company or the Association or Capital Resources
from persons other than the other party thereto, who may also be liable for
contribution) in such proportion so that Capital Resources is responsible for
that portion represented by the fees paid to Capital Resources pursuant to
Section 2 of this Agreement (not including expenses) bears to the gross proceeds
received by the Company from the sale of the Shares in the Offering and the
Company and the Association shall be responsible for the balance. If, however,
the allocation provided above is not permitted by applicable law or if the
indemnified party failed to give the notice required under Section 9 above, then
each indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative fault of the Company and the Association on the one hand and Capital
Resources on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions, proceedings
or claims in respect thereof), but also the relative benefits received by the
Company and Association on the one hand and Capital Resources on the other from
the offering as well as any other relevant equitable considerations. The
relative benefits received by the Company and the Association on the one hand
and Capital Resources on the other shall be deemed to be in the same proportion
as the total gross proceeds from the Offering (before deducting expenses)
received by the Company bear to the total fees (not including expenses) received
by Capital Resources. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company and/or the Association on the one hand or
Capital Resources on the other and the parties' relative intent, good faith,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company, the Association and Capital Resources agree
that it would not be just and equitable if contribution pursuant to this Section
10 were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this Section 10. The amount paid or payable by an indemnified party as a result
of the losses, claims, damages or liabilities (or action, proceedings or claims
in respect thereof) referred to above in this Section 10 shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action, proceeding
or claim. It is expressly agreed that Capital Resources shall not be liable for
any loss, liability, claim, damage or expense or be required to contribute any
amount which in the aggregate exceeds the amount paid (excluding reimbursable
expenses) to Capital Resources under this Agreement. It is
- 24 -
<PAGE>
understood that the above-stated limitation on Capital Resources' liability is
essential to Capital Resources and that Capital Resources relied upon such
limitation and would not have entered into this Agreement if such limitation had
not been agreed to by the parties to this Agreement. No person found guilty of
any fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not found
guilty of such fraudulent misrepresentation. The obligations of the Company and
the Association under this Section 10 and under Section 9 shall be in addition
to any liability which the Company and the Association may otherwise have. For
purposes of this Section 10, each of Capital Resources', the Company's or the
Association's officers and directors and each person, if any, who controls
Capital Resources or the Company or the Association within the meaning of the
1933 Act and the 1934 Act shall have the same rights to contribution as the
Company and the Association. Any party entitled to contribution, promptly after
receipt of notice of commencement of any action, suit, claim or proceeding
against such party in respect of which a claim for contribution may be made
against another party under this Section 10, will notify such party from whom
contribution may be sought, but the omission to so notify such party shall not
relieve the party from whom contribution may be sought from any other obligation
it may have hereunder or otherwise than under this Section 10. This Section 10
is subject to and limited by the provisions of Section 23A of the Federal
Reserve Act, as applicable.
SECTION 11. Survival of Agreements, Representations and
Indemnities. The respective indemnities of the Company, the Association and
Capital Resources and the representations and warranties and other statements of
the Company and the Association set forth in or made pursuant to this Agreement
shall remain in full force and effect, regardless of any termination or
cancellation of this Agreement or any investigation made by or on behalf of
Capital Resources, the Company, the Association or any indemnified person
referred to in Section 9 hereof, and shall survive the issuance of the Shares,
and any legal representative, successor or assign of Capital Resources, the
Association, and any such indemnified person shall be entitled to the benefit of
the respective agreements, indemnities, warranties and representations.
SECTION 12. Termination. Capital Resources may terminate this
Agreement by giving the notice indicated below in this Section at any time after
this Agreement becomes effective as follows:
(a) In the event the Company fails to sell all of the Shares
within the period specified, and in accordance with the provisions of the Plan
or as required by the Conversion Regulations and applicable law, this Agreement
shall terminate upon refund by the Association to each person who has subscribed
for or ordered any of the Shares the full amount which it may have received from
such person, together with interest as provided in the Offering Prospectus, and
no party to this Agreement shall have any obligation to the other hereunder,
except for payment by the Association and/or the Company as set forth in
Sections 2, 7, 9 and 10 hereof.
(b) If any of the conditions specified in Section 8 shall not
have been fulfilled when and as required by this Agreement, or by the Closing
Date, or waived in writing by Capital Resources, this Agreement and all of
Capital Resources obligations hereunder may be canceled by Capital Resources by
notifying the Association of such cancellation in writing or by telegram at any
time at or prior to the Closing Date, and, any such cancellation shall be
without liability of any party to any other party except as otherwise provided
in Sections 2, 7, 9 and 10 hereof.
(c) If Capital Resources elects to terminate this Agreement as
provided in this section, the Company and the Association shall be notified as
provided in Section 13 hereof, promptly by Capital Resources by telephone or
telegram, confirmed by letter.
SECTION 13. Notices. All communications hereunder, except as
herein otherwise specifically provided, shall be mailed in writing and if sent
to Capital Resources shall be mailed, delivered or telegraphed and
- 25 -
<PAGE>
confirmed to Capital Resources, Inc., 1211 Connecticut Avenue, N.W., Suite 200,
Washington, D.C. 20036 Attention: Catherine K. Rochester (with a copy to Steele
Silcox & Browning, P.C., 1150 Connecticut Ave., NW, Ninth Floor, Washington,
D.C. 20036, Attention: Clark R. Silcox, Esq.) and, if sent to the Company and
the Association, shall be mailed, delivered or telegraphed and confirmed to the
Company and the Association at 17 West Mall Plaza, Carnegie, PA 15106,
Attention: Ms. Shirley Chiesa (with a copy to Malizia, Spidi, Sloane & Fisch,
P.C., 1301 K Street, NW, Suite 700 East, Washington, D.C. 20005, Attention:
Charles E. Sloane, Esq.)
SECTION 14. Parties. The Company and the Association shall be
entitled to act and rely on any request, notice, consent, waiver or agreement
purportedly given on behalf of Capital Resources when the same shall have been
given by the undersigned. Capital Resources shall be entitled to act and rely on
any request, notice, consent, waiver or agreement purportedly given on behalf or
the Company or the Association, when the same shall have been given by the
undersigned or any other officer of the Company or the Association. This
Agreement shall inure solely to the benefit of, and shall be binding upon,
Capital Resources and the Company, the Association and the controlling persons
referred to in Section 9 hereof, and their respective successors, legal
representatives and assigns, and no other person shall have or be construed to
have any legal or equitable right, remedy or claim under or in respect of or by
virtue of this Agreement or any provision herein contained.
SECTION 15. Closing. The closing for the sale of the Shares
shall take place on the Closing Date at the offices of Malizia, Spidi, Sloane &
Fisch, P.C., 1301 K Street, NW, Suite 700 East, Washington, D.C. 20005, or such
other location as mutually agreed upon by Capital Resources, the Company and the
Association. At the closing, the Association shall deliver to Capital Resources
in next day funds the commissions, fees and expenses due and owing to Capital
Resources as set forth in Sections 2 and 7 hereof and the opinions and
certificates required hereby and other documents deemed reasonably necessary by
Capital Resources shall be executed and delivered to effect the sale of the
Shares as contemplated hereby and pursuant to the terms of the Offering
Prospectus.
SECTION 16. Partial Invalidity. In the event that any term,
provision or covenant herein or the application thereof to any circumstances or
situation shall be invalid or unenforceable, in whole or in part, the remainder
hereof and the application of said term, provision or covenant to any other
circumstance or situation shall not be affected thereby, and each term,
provision or covenant herein shall be valid and enforceable to the full extent
permitted by law.
SECTION 17. Construction. This Agreement shall be construed
in accordance with the laws of the District of Columbia.
SECTION 18. Counterparts. This Agreement may be executed in
separate counterparts, each of which so executed and delivered shall be an
original, but all of which together shall constitute but one and the same
instrument.
Time shall be of the essence of this Agreement.
- 26 -
<PAGE>
If the foregoing correctly sets forth the arrangement among
the Company, the Association and Capital Resources, please indicate acceptance
thereof in the space provided below for that purpose, whereupon this letter and
Capital Resources' acceptance shall constitute a binding agreement.
Very truly yours,
CARNEGIE FINANCIAL CORPORATION.
By: ________________________________
Shirley Chiesa, President and
Chief Executive Officer
CARNEGIE SAVINGS BANK
By:________________________________
Shirley Chiesa, President and
Chief Executive Officer
Accepted as of the date first above written.
CAPITAL RESOURCES, INC.
By: _____________________________________
Catherine K. Rochester
President
- 27 -
<PAGE>
EXHIBIT A
Capital Resources
Broker/Dealer Jurisdictions
California Colorado Connecticut District of Columbia Florida Georgia Iowa Idaho
Illinois Indiana Kansas Kentucky Louisiana Massachusetts Maryland Michigan
Minnesota Missouri North Carolina New Jersey New Mexico New York Ohio
Pennsylvania South Carolina Tennessee Texas Virginia Wisconsin West Virginia
- 28 -
EXHIBIT 5.1
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
ATTORNEYS AT LAW
1301 K STREET, N.W.
SUITE 700 EAST
WASHINGTON, D.C. 20005
(202) 434-4660
FACSIMILE: (202) 434-4661
WRITER'S DIRECT DIAL NUMBER
May 5, 1998
Board of Directors
Carnegie Financial Corporation
17 West Mall Plaza
Carnegie, Pennsylvania 15106
Re: Registration Statement Under the Securities Act of 1933
-------------------------------------------------------
Ladies and Gentlemen:
This opinion is rendered in connection with the Registration Statement on
Form SB-2 to be filed with the Securities and Exchange Commission under the
Securities Act of 1933 relating to the offer and sale of up to 238,050 shares of
common stock, par value $0.10 per share (the "Common Stock"), of Carnegie
Financial Corporation (the "Company"), including shares to be issued to certain
employee benefit plans of the Company and its subsidiary. The Common Stock is
proposed to be issued pursuant to the Plan of Conversion (the "Plan") of
Carnegie Savings Bank, (the "Savings Bank") in connection with the Savings
Bank's conversion from a mutual savings bank form of organization to a stock
savings bank form of organization and reorganization into a wholly-owned
subsidiary of the Company (the "Conversion"). As special counsel to the Savings
Bank and the Company, we have reviewed the corporate proceedings relating to the
Plan and the Conversion and such other legal matters as we have deemed
appropriate for the purpose of rendering this opinion.
Based on the foregoing, we are of the opinion that the shares of Common
Stock of the Company covered by the aforesaid Registration Statement will, when
issued in accordance with the terms of the Plan against full payment therefor,
be validly issued, fully paid, and non- assessable shares of Common Stock of the
Company.
We assume no obligation to advise you of changes that may hereafter be
brought to our attention.
<PAGE>
Board of Directors
May 5, 1998
Page Two
We hereby consent to the use of this opinion and to the reference to our
firm appearing in the Company's Prospectus under the headings "The Conversion -
Effects of Conversion to Stock Form on Depositors and Borrowers of Carnegie
Savings Bank - Tax Effects" and "Legal and Tax Matters." We also consent to any
references to our legal opinion referred to under the aforementioned headings in
the Prospectus.
Very truly yours,
/s/Malizia, Spidi, Sloane & Fisch
-----------------------------------
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
EXHIBIT 8.1
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
ATTORNEYS AT LAW
1301 K STREET, N.W.
SUITE 700 EAST
WASHINGTON, D.C. 20005
(202) 434-4660
FACSIMILE: (202) 434-4661
WRITER'S DIRECT DIAL NUMBER
May 5, 1998
Board of Directors
Carnegie Savings Bank
17 West Mall Plaza
Carnegie, Pennsylvania 15106
Re: Federal Income Tax Opinion Relating to the Proposed Conversion of
Carnegie 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 the material federal income tax consequences of the
proposed conversion (the "Conversion") of Carnegie 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 December 15, 1997,
as amended (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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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 acquisitions, 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 Commonwealth
of Pennsylvania 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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 Conversion.
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 November 30, 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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 $75,000 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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 the 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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 Association 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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. 00
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, the 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>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 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. 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 li0abilities 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.
15. 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.
16. 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.
17. 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.
18. There will be no purchase price advantage for the Bank's deposit
account holders who purchase Holding Company Stock in the Conversion.
19. 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.
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 1998
Page 10
20. 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.
21. 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.
22. 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.
23. 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.
24. 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).
25. 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.
26. 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 will be the same price used in the Public Offering for unsubscribed
shares of Holding Company Stock.
27. 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
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 1998
Page 11
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 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 dis00tribution 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
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 1998
Page 12
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 the 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 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 any 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. 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
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 1998
Page 13
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).
11. 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.
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
------------------------------------
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
EXHIBIT 8.2
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
ATTORNEYS AT LAW
1301 K STREET, N.W.
SUITE 700 EAST
WASHINGTON, D.C. 20005
(202) 434-4660
FACSIMILE: (202) 434-4661
WRITER'S DIRECT DIAL NUMBER
May 5, 1998
Board of Directors
Carnegie Savings Bank
17 West Mall Plaza
Carnegie, Pennsylvania 15106
Board Members:
You have requested our opinion regarding certain Pennsylvania tax
consequences to Carnegie Savings Bank (the "Bank") and its depositors under the
laws of the Commonwealth of Pennsylvania of the proposed conversion (the
"Conversion") under which the Bank will be changed from a federally-chartered
mutual savings bank to a federally-chartered capital stock savings bank (the
"Stock Bank"), the simultaneous formation of a parent holding company
incorporated in Pennsylvania (the "Holding Company") that will acquire all of
the outstanding stock of the Stock Bank (the "Acquisition"), and the offering of
the stock of the Holding Company to the public (the "Offering"), pursuant to a
Plan of Conversion adopted by the Board of Directors of the Bank on December 15,
1997, as amended (the "Plan").
We have provided the Bank an opinion of this firm regarding certain federal
income tax consequences of the Conversion, the Acquisition, and the Offering
(the "Federal Tax Opinion"). Based upon the facts stated in the Federal Tax
Opinion, including certain representations of the Bank, the Federal Tax Opinion
concludes, among other things, that the Conversion qualifies as a tax-free
reorganization under ss.368(a)(1)(F) of the Internal Revenue Code of 1986, as
amended, and that the Bank, the Stock Bank, and the Holding Company and the
depositors of the Bank will not recognize income, gain, or loss for federal
income tax purposes upon the implementation of the Conversion, the Acquisition,
and the Offering.
Based upon (1) the facts and circumstances attendant to the Conversion, the
Acquisition, and the Offering, including the representations of the Bank, as
described in the Federal Tax Opinion, (2) current provisions of Pennsylvania
law, as reflected in Pennsylvania statutes, administrative regulations and
rulings thereunder, and court decisions, (3) the Federal Tax Opinion, and (4)
the assumption that the Conversion, the Acquisition, and the Offering will not
result in the recognition of any gain or income on the books of the Bank, the
Stock Bank, or the Holding Company under generally accepted accounting
principles, it is our opinion that under the laws of the Commonwealth of
Pennsylvania, the implementation of the Conversion, the
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 1998
Page 2
Acquisition and the Offering will not cause any tax liability to be incurred (a)
by the Bank or by the Stock Bank under the Pennsylvania Mutual Thrift
Institutions Tax ("MTIT"), 72 P.S. ss.8501 et seq., (b) by the depositors of the
Bank under the Pennsylvania Personal Income Tax ("PIT"), 72 P.S. ss.7301 et
seq., and (c) by the Holding Company under the Pennsylvania Corporate Net Income
Tax ("CNIT"), 72 P.S. ss.7401 et seq.
Our opinions herein are expressly limited to those taxes specified in the
immediately preceding paragraph and specifically do not include any opinions
with respect to the consequences to depositors of the implementation of the
Conversion, the Acquisition, or the Offering under any other taxes imposed by
the Commonwealth of Pennsylvania or any other subdivision thereof, or imposed by
states other than Pennsylvania and local jurisdictions of such states. In
addition, the opinions herein specifically do not include (1) an opinion with
respect to the consequences to the Bank, the Stock Bank, and the Holding Company
of the implementation of the Conversion, the Acquisition, or the Offering under
any local taxes imposed by any political subdivision of the Commonwealth of
Pennsylvania, and under any state or local realty or other transfer tax, or (2)
an opinion with respect to tax liabilities under the MTIT, the PIT, or the CNIT
attributable to events after the Conversion, the Acquisition and the Offering or
to any assets held or acquired by the Holding Company other than stock of the
Stock Bank.
Our opinion is based on the facts and conditions as stated herein, whether
directly or by reference to the Federal Tax Opinion. If any of the facts and
conditions are not entirely complete or accurate, it is imperative that we be
informed immediately, as the inaccuracy or incompleteness could have a material
effect on our conclusions. In rendering our opinion, we are relying upon the
relevant provisions of the Code, the laws of the Commonwealth of Pennsylvania,
as amended, the regulations and rules thereunder and judicial and administrative
interpretations thereof, which are subject to change or modification by
subsequent legislative, regulatory, administrative, or judicial decisions. Any
such changes could also have an effect on the validity of our opinion. We
undertake no responsibility to update or supplement our opinion. Our opinion is
not binding on the Internal Revenue Service or the Commonwealth of Pennsylvania,
nor can any assurance be given that any of the foregoing parties will not take a
contrary position or that our opinion will be upheld if challenged by such
parties.
Finally, we hereby consent to the filing of this opinion as an exhibit to
the Application for Conversion on Form AC ("Form AC") or similar filings of the
Bank filed with the Office of Thrift Supervision, the filing of this opinion as
an exhibit to the Application H-(e)(1)S of the Holding Company to be filed with
the Office of Thrift Supervision, and the filing of this opinion
<PAGE>
MALIZIA, SPIDI, SLOANE & FISCH, P.C.
Board of Directors
Carnegie Savings Bank
May 5, 1998
Page 3
as an exhibit to the Holding Company's Registration Statement on Form SB-2
("Form SB-2") to be filed with the Securities and Exchange Commission, and to
reference to our firm in the offering circular contained in the Form AC, Form
SB-2 and related documents related to this opinion.
Very truly yours,
/s/MALIZIA, SPIDI, SLOANE & FISCH
---------------------------------
Malizia, Spidi, Sloane & Fisch, P.C.
EXHIBIT 23.2
<PAGE>
Goff
Ellenbogen
Backa & Alfera, LLC
- ---------------------------
Certified Public Accountants
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We hereby consent to the use in this Registration Statement on Form SB-2 and on
Form AC of our report dated February 17, 1998, relating to the financial
statements of Carnegie Savings Bank, and to the references to our Firm under the
term "Experts", and elsewhere in the Prospectus.
/s/Goff Ellenbogen Backa & Alfera, LLC
- --------------------------------------
GOFF ELLENBOGEN BACKA & ALFERA, LLC
Pittsburgh, Pennsylvania
May 6, 1998
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION DERIVED FROM THE
ANNUAL REPORT ON FORM S-B AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 851
<INT-BEARING-DEPOSITS> 100
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 2,523
<INVESTMENTS-CARRYING> 2,635
<INVESTMENTS-MARKET> 2,667
<LOANS> 9,700
<ALLOWANCE> 115
<TOTAL-ASSETS> 16,723
<DEPOSITS> 15,177
<SHORT-TERM> 0
<LIABILITIES-OTHER> 376
<LONG-TERM> 0
0
0
<COMMON> 0
<OTHER-SE> 1,170
<TOTAL-LIABILITIES-AND-EQUITY> 16,723
<INTEREST-LOAN> 859
<INTEREST-INVEST> 336
<INTEREST-OTHER> 27
<INTEREST-TOTAL> 1,222
<INTEREST-DEPOSIT> 671
<INTEREST-EXPENSE> 0
<INTEREST-INCOME-NET> 551
<LOAN-LOSSES> 73
<SECURITIES-GAINS> 2
<EXPENSE-OTHER> 649
<INCOME-PRETAX> (108)
<INCOME-PRE-EXTRAORDINARY> (54)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (54)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<YIELD-ACTUAL> 3.51
<LOANS-NON> 42
<LOANS-PAST> 181
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 11
<ALLOWANCE-OPEN> 39
<CHARGE-OFFS> 0
<RECOVERIES> 3
<ALLOWANCE-CLOSE> 115
<ALLOWANCE-DOMESTIC> 73
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 73
</TABLE>
EXHIBIT 99.2
<PAGE>
Table of Contents
Carnegie Savings Bank
Carnegie, Pennsylvania
INTRODUCTION 1
- --------------------------------------------------------------------------------
1. OVERVIEW AND FINANCIAL ANALYSIS 3
- --------------------------------------------------------------------------------
GENERAL OVERVIEW 3
HISTORY 3
STRATEGIC DIRECTION 4
BALANCE SHEET TRENDS 5
LOAN PORTFOLIO 7
SECURITIES 10
INVESTMENTS AND MORTGAGE-BACKED SECURITIES 11
ASSET QUALITY 12
FUNDING COMPOSITION 15
ASSET/LIABILITY MANAGEMENT 17
NET WORTH AND CAPITAL 18
INCOME AND EXPENSE TRENDS 19
SUBSIDIARIES 24
LEGAL PROCEEDINGS 24
2. MARKET AREA ANALYSIS 25
- --------------------------------------------------------------------------------
MARKET AREA DEMOGRAPHICS 25
MARKET AREA DEPOSIT CHARACTERISTICS 27
3. COMPARISONS WITH PUBLICLY TRADED THRIFTS 28
- --------------------------------------------------------------------------------
INTRODUCTION 28
SELECTION SCREENS 28
SELECTION CRITERIA 30
COMPARABLE GROUP PROFILES 31
4. MARKET VALUE DETERMINATION 36
- --------------------------------------------------------------------------------
INTRODUCTION 36
BALANCE SHEET STRENGTH 37
ASSET QUALITY 40
EARNINGS QUALITY, PREDICTABILITY AND GROWTH 41
MARKET AREA 46
- --------------------------------------------------------------------------------
<PAGE>
MANAGEMENT 47
DIVIDENDS 48
LIQUIDITY OF THE ISSUE 49
SUBSCRIPTION INTEREST 50
RECENT REGULATORY MATTERS 52
MARKET FOR SEASONED THRIFT STOCKS 53
ACQUISITION MARKET 57
ADJUSTMENTS TO VALUE 62
VALUATION APPROACH 63
VALUATION CONCLUSION 67
- --------------------------------------------------------------------------------
<PAGE>
List of Figures
Carnegie Savings Bank
Carnegie, Pennsylvania
<TABLE>
<CAPTION>
<S> <C>
FIGURE 1 - CURRENT BRANCH LIST 3
FIGURE 2 - ASSET AND RETAINED EARNINGS CHART 5
FIGURE 3 - KEY BALANCE SHEET DATA 6
FIGURE 4 - KEY RATIOS 6
FIGURE 5 - NET LOANS RECEIVABLE CHART 7
FIGURE 6 - LOAN MIX AS OF DECEMBER 31, 1997 CHART 8
FIGURE 7 - LOAN MIX 9
FIGURE 8 - SECURITIES CHART 10
FIGURE 9 - INVESTMENT MIX 11
FIGURE 10 - NON-PERFORMING ASSETS CHART 12
FIGURE 11 - NON-PERFORMING LOANS 13
FIGURE 12 - ALLOWANCE FOR POSSIBLE LOAN AND LEASE LOSSES CHART 14
FIGURE 13 - DEPOSIT AND BORROWING TREND CHART 15
FIGURE 14 - DEPOSIT MIX 16
FIGURE 15 - NET PORTFOLIO VALUE 17
FIGURE 16 - CAPITAL ANALYSIS 18
FIGURE 17 - NET INCOME CHART 19
FIGURE 18 - AVERAGE YIELDS AND COSTS 20
FIGURE 19 - SPREAD AND MARGIN CHART 21
FIGURE 20 - INCOME STATEMENT TRENDS 22
FIGURE 21 - PROFITABILITY TREND CHART 23
FIGURE 22 - POPULATION DEMOGRAPHICS 25
FIGURE 23 - HOUSEHOLD CHARACTERISTICS 26
FIGURE 24 - MARKET SHARE 27
FIGURE 25 - POTENTIAL COMPARABLES 29
FIGURE 26 - COMPARABLES ELIMINATED 29
FIGURE 27 - COMPARABLE GROUP 29
FIGURE 28 - KEY FINANCIAL INDICATORS 34
FIGURE 29 - KEY BALANCE SHEET DATA 37
FIGURE 30 - BALANCE SHEET GROWTH DATA 38
FIGURE 31 - CAPITAL DATA 39
FIGURE 32 - ASSET QUALITY TABLE 40
FIGURE 33 - NET INCOME TREND 42
FIGURE 34 - PROFITABILITY DATA 43
FIGURE 35 - INCOME STATEMENT DATA 44
FIGURE 36 - CORE EARNINGS DATA 44
FIGURE 37 - DIVIDENDS DATA 48
FIGURE 38 - MARKET CAPITALIZATION DATA 49
FIGURE 39 - RECENT STANDARD CONVERSION PERFORMANCE 50
FIGURE 40 - SNL THRIFT INDEX CHART 53
FIGURE 41 - HISTORICAL SNL INDEX 54
FIGURE 42 - EQUITY INDICES 55
FIGURE 43 - HISTORICAL RATES 56
FIGURE 44 - DEALS FOR LAST TWELVE QUARTERS 57
FIGURE 45 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO BOOK 58
FIGURE 46 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO TANGIBLE BOOK 58
FIGURE 47 - THRIFT ACQUISITION MULTIPLES, PRICE TO EARNINGS 59
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
FIGURE 48 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO ASSETS 59
FIGURE 49 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO DEPOSITS 60
FIGURE 50 - DEAL MULTIPLES 60
FIGURE 51 - ACQUISITION TABLE 61
FIGURE 52 - VALUE RANGE OFFERING DATA 64
FIGURE 53 - VALUE RANGE OFFERING DATA 64
FIGURE 54 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PROFORMA MIDPOINT 65
FIGURE 55 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PROFORMA SUPERMAXIMUM 65
FIGURE 56 - RECENT STANDARD CONVERSIONS TRADING MULTIPLES TO THE BANK'S PROFORMA MIDPOINT 65
FIGURE 57 - RECENT STANDARD CONVERSION TRADING MULTIPLES TO THE BANK'S PROFORMA SUPERMAXIMUM 66
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
List of Exhibits
Carnegie Savings Bank
Carnegie, Pennsylvania
Exhibit
- -----------
1 Profile of FinPro, Inc.
2 Consolidated Statements of Financial Condition
3 Consolidated Statements of Income
4 Reconciliation of Call Report Schedule RI to Audited Financial Income
5 Statement onsolidated Statements of Changes in Net Worth
6 Consolidated Statements of Cash Flows
7 Selected Data on All Public Thrifts
8 Industry Multiples
9 Recent Standard Conversions 1997 to Date
10 Appraisal Proforma December 31, 1997 - 12 Months Data Adjusted
11 Appraisal Proforma December 31, 1997 - 12 Months Data Unadjusted
- --------------------------------------------------------------------------------
<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
Carnegie Financial Corporation (the "Company") in connection with the Plan of
Conversion ("Conversion") of Carnegie 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 50% 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 year ended December 31, 1997 and the Bank's
operations and financials for the prior year ended December 31, 1996. We also
reviewed the Bank's Application for Approval of Conversion including the Proxy
Statement and the Company's Form S-1 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, Goff Ellenbogen Backa & Alfera, LLC (the Bank's
independent audit firm), Capital Resources, Inc. (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 December 31, 1997, the Bank had $16.7 million in total assets, $15.2
million in deposits, $9.6 million in net loans and $1.2 million in equity.
The following table shows the Bank's branch network as of December 31, 1997.
FIGURE 1 - CURRENT BRANCH LIST
Branch Office Town
------------------------------------------------ ----------------------------
Allegheny County
17 West Mall Plaza Carnegie
- -------------------------------------------------
HISTORY
- -------------------------------------------------
Carnegie Savings Bank began operations in 1915 under the name, "Carnegie Savings
Building and Loan." In 1995, the Bank converted to a state savings bank charter
and obtained FDIC insurance through BIF. In March 1998, the Bank converted to a
federal mutual savings charter. The Bank is a community and customer oriented
federal mutual savings bank. The Bank provides financial services to
individuals, families and small businesses. Historically, the Bank emphasized
residential mortgage lending, primarily originating one-to-four family mortgage
loans.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 4
================================================================================
- -------------------------------------------------
STRATEGIC DIRECTION
- -------------------------------------------------
The Bank's Business Plan 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).
The Bank will build its interest rate spread and margin through controlled loan
growth and a change in deposit mix. In addition, the Bank will maintain earnings
by emphasizing asset quality and controlling expenses.
The Plan calls for the following major thrusts over the five-year planning
horizon:
1. Converting 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. Change in the loan mix to increase mortgages, home equity loans, home
equity lines of credit, and limited commercial loans (secured);
4. Change of the funding mix toward core deposits and away from time
deposits; and
5. Analyze and implement wholesale leverage strategies as interest rate
and economic opportunities present themselves.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 5
================================================================================
- -------------------------------------------------
BALANCE SHEET TRENDS
- -------------------------------------------------
The Bank's balance sheet increased by $3.0 million from $13.7 million at
December 31, 1995 to $16.7 million at December 31, 1997, or by 21.77%.
Equity has increased $59 thousand from $1.1 million at December 31, 1995 to $1.2
million at December 31, 1997. The equity to assets ratio is currently 7.00%.
FIGURE 2 - ASSET AND RETAINED EARNINGS CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 6
================================================================================
The following tables set forth certain information concerning the financial
position of the Bank along with selected ratios at the dates indicated.
FIGURE 3 - KEY BALANCE SHEET DATA
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
At December 31,
------------------------------------
1997 1996 1995
------------------------------------
Selected Financial Condition and Other Data: ($ in thousands)
------------------------------------
<S> <C> <C> <C>
Total Amount of:
Assets $ 16,723 $ 15,100 $ 13,733
Loans receivable, net 9,585 9,812 9,002
Mortgage-backed securities 2,628 2,014 980
Investment securities 2,530 2,150 1,687
Cash and cash equivalents 851 557 1,542
Savings deposits 15,178 13,378 12,407
Other borrowings - 300 -
Retained earnings 1,170 1,196 1,111
Number of:
Deposit accounts 2,309 2,221 2,080
Full service offices 1 1 1
- -----------------------------------------------------------------------------------------------
</TABLE>
Source: Offering Prospectus
FIGURE 4 - KEY RATIOS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
At or For the Years
Key Operating Ratios Ended December 31,
-------------------------------------
1997 1996 1995
-------------------------------------
Performance Ratios:
<S> <C> <C> <C>
Return on average assets (net income divided by average -0.33% 0.70% 0.65%
total assets)
Return on average equity (net income divided by -4.28% 8.64% 8.19%
average equity)
Ratio of average equity to average assets ratio (average
equity divided by average total assets) 7.73% 8.09% 7.95%
Equity to assets at period end 7.00% 7.92% 8.09%
Interest rate spread 3.06% 3.51% 3.58%
Net interest margin 3.48% 3.87% 3.86%
Average interest-earning assets to average
interest -bearing liabilities 109.93% 109.03% 106.60%
Net interest income after provision for loan losses
to total noninterest expense 73.68% 113.26% 112.95%
Asset Quality Ratios:
Non-performing loans to total assets 0.25% 0.22% 0.53%
Non-performing assets to total assets 3.12% 1.32% 1.75%
Non-performing loans to total loans 0.44% 0.34% 0.81%
Allowance for loan losses to total loans at end of period 1.19% 0.40% 0.42%
Allowance for loan losses to non-performing loans 273.81% 118.18% 52.05%
- -------------------------------------------------------------------------------------------------------
</TABLE>
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 7
================================================================================
- -------------------------------------------------
LOAN PORTFOLIO
- -------------------------------------------------
The Bank's loan portfolio has increased by $583 thousand over the two year
period ended December 31, 1997, though, as a percent of assets, has decreased
from 65.55% at December 31, 1995 to 57.32% at December 31, 1997.
FIGURE 5 - NET LOANS RECEIVABLE CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 8
================================================================================
The Bank is primarily a residential one-to-four family lender.
FIGURE 6 - LOAN MIX AS OF DECEMBER 31, 1997 CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 9
================================================================================
The Bank's loan mix has remained relatively consistent from 1996 to 1997 and is
primarily residential in its composition.
FIGURE 7 - LOAN MIX
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
At December 31,
---------------------------------------------------------
1997 1996
---------------------------------------------------------
Amount Percent Amount Percent
---------------------------------------------------------
($ in thousands)
- ----------------------------------------------------------------------------------------------------------------
Real Estate Loans:
<S> <C> <C> <C> <C>
Construction Loans $ 251 2.59% $ 70 0.71%
Residential 8,236 84.90% 8,360 84.86%
Commercial 343 3.54% 418 4.24%
Consumer Loans:
Share loans 120 1.24% 156 1.58%
Automobile Loans 382 3.94% 381 3.88%
Unsecured 368 3.79% 466 4.73%
------- ------ ------- ------
$ 9,700 100.00% $ 9,851 100.00%
======= ====== ======= ======
Less:
Loans in process - -
Deferred loan origination fees - -
Allowance for loan losses 115 39
------- -------
Total loans, net $ 9,585 $ 9,812
======= =======
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 10
================================================================================
- -------------------------------------------------
SECURITIES
- -------------------------------------------------
The Bank's security portfolio has grown from $2.7 million at December 31, 1995,
to $5.2 million at December 31, 1997. The mix has shifted from investment
securities toward mortgage-backed securities.
FIGURE 8 - SECURITIES CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 11
================================================================================
- -------------------------------------------------
INVESTMENTS AND MORTGAGE-BACKED SECURITIES
- -------------------------------------------------
The Bank has balanced its available for sale and held to maturity portfolios in
1997 while diversifying its available for sale portfolio with an ARM fund and
additional mortgage-backed securities.
FIGURE 9 - INVESTMENT MIX
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
At December 31,
--------------------------------------
1997 1996
--------------------------------------
($ in thousands)
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Securities held to maturity:
U.S. government securities $ - $ -
U.S. agency securities 300 550
State and local government 614 714
Other debt securities - 199
Mortgage-backed securities held to maturity 1,721 2,014
------- -------
Total securities held to maturity 2,635 3,477
Securities available for sale:
U.S. government securities 204 389
U. S. agency securities 810 199
AMF Arm fund 503 -
Federal funds sold - -
Other debt securities 99 99
FHLB stock - -
Mortgage-backed securities available for sale 907 -
Total securities available for sale $ 2,523 $ 687
------- -------
Total investment and mortgage-backed securities $ 5,158 $ 4,164
======= =======
- --------------------------------------------------------------------------------------------------
</TABLE>
Source: Prospectus Tables
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 12
================================================================================
- -------------------------------------------------
ASSET QUALITY
- -------------------------------------------------
During 1997 the Bank sold the real estate owned property on its books at
December 31, 1996. On December 5, 1997 the Bank was obliged to purchase a
property on which it had an equity line of credit in the amount of $320 thousand
due to the borrowers default on the first mortgage. The appraised value of the
property is $540 thousand.
FIGURE 10 - NON-PERFORMING ASSETS CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 13
================================================================================
At December 31, 1997 the Bank's non-performing loan to net loan ratio was 0.44%,
indicating a strong asset quality, however, non-performing assets as a
percentage of total assets was 3.12%.
FIGURE 11 - NON-PERFORMING LOANS
-----------------------------------------------------
At December 31, 1997
($ in thousands)
-----------------------------------------------------
Non-performing loans $42
Real estate owned, net 480
-----------------------------------------------------
Total non-performing assets $522
Non-performing loans as a percentage
of net loans 0.44%
Non-performing assets as a percentage
of total assets 3.12%
-----------------------------------------------------
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 14
================================================================================
The Bank increased its allowance for loan and lease losses from $38 thousand at
December 31, 1995 to $115 thousand at December 31, 1997. The ALLL to loans was
1.19% as of December 31, 1997.
FIGURE 12 - ALLOWANCE FOR POSSIBLE LOAN AND LEASE LOSSES CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 15
================================================================================
- -------------------------------------------------
FUNDING COMPOSITION
- -------------------------------------------------
Overall, deposits have increased from $12.4 million at December 31, 1995 to
$15.2 million at December 31, 1997. From time to time, the Bank relies on short
term borrowings for liquidity management purposes.
FIGURE 13 - DEPOSIT AND BORROWING TREND CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 16
================================================================================
The Bank's deposit mix as of December 31, 1997 is presented below. Time deposits
comprised 67.37% of total deposits. The Bank's cost of funds for the year ended
December 31, 1997 was 4.66%.
FIGURE 14 - DEPOSIT MIX
-------------------------------------------------------------------------------
As of December 31,1997
($ in thousands)
- --------------------------------------------------------------------------------
Interest % of
Category Amount Rate (1) Total
- --------------------------------------------------------------------------------
NOW accounts $ 1,031 1.50% 6.79%
Passbook savings 1,098 2.25% 7.23%
Premium passbook savings 2,264 2.50% 14.92%
Passbook savings club accounts 14 1.75% 0.09%
Non-interest bearing accounts 546 0.00% 3.60%
Certificates of Deposit:
1-3 months - 0.00% 0.00%
4-6 months 1,380 4.50% 9.09%
7-12 months 1,771 5.25% 11.67%
13-24 months 3,557 5.25% 23.43%
25-36 months 698 5.25% 4.60%
37-48 months 80 5.50% 0.53%
49-120 months 2,739 6.00% 18.05%
-------- ------
Total deposits $ 15,178 100.00%
======== ======
- --------------------------------------------------------------------------------
(1) Offering as of 12/31/97
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 17
================================================================================
- -------------------------------------------------
ASSET/LIABILITY MANAGEMENT
- -------------------------------------------------
The following chart illustrates the Bank's net portfolio value ("NPV") at
December 31, 1997, as calculated by FinPro, Inc. 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 some level of
interest rate risk. At the +200 basis point rate shock, the Bank's NPV falls
below the level of tangible. This is due to its large conventional mortgage
portfolio and its reliance on time deposits.
FIGURE 15 - NET PORTFOLIO VALUE
[GRAPHIC OMITTED]
Source: FinPro calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 18
================================================================================
- -------------------------------------------------
NET WORTH AND CAPITAL
- -------------------------------------------------
At December 31, 1997, the Bank had capital in excess of the minimum requirements
for all three capital requirements.
FIGURE 16 - CAPITAL ANALYSIS
- --------------------------------------------------------------------------------
December 31, 1997
- --------------------------------------------------------------------------------
Regulatory Capital Position Amount Percent
(000's) of Assets
- --------------------------------------------------------------------------------
GAAP capital $ 1,170 7.11%
Tier I Core Capital:
Actual capital $ 1,156 7.03%
Regulatory Requirement 658 4.00%
------- -----
Excess $ 498 3.03%
======= =====
Tier I Risk-based capital:
Actual capital $ 1,156 14.20%
Regulatory Requirement 326 4.00%
------- -----
Excess $ 830 10.20%
======= =====
Tier II Risk-based capital:
Actual capital $ 1,258 15.45%
Regulatory Requirement 651 8.00%
------- -----
Excess $ 607 7.45%
======= =====
- --------------------------------------------------------------------------------
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 19
================================================================================
- -------------------------------------------------
INCOME AND EXPENSE TRENDS
- -------------------------------------------------
The Bank's net loss, for the year ended December 31, 1997, of $54 thousand
included several one time charges. The one time expenses were $153 thousand in
retirement benefit accruals, approximately $60 thousand in additional provision
for loan and lease losses and miscellaneous write-offs of $18 thousand all tax
impacted 37%. On a normalized, tax adjusted basis, the Bank would have had net
income of $92 thousand.
FIGURE 17 - NET INCOME CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 20
================================================================================
Interest rate spread and margin decreased for the year ended December 31, 1997.
The decrease is due to both a lower asset yield and a higher cost of funds. The
decreased asset yield is partially due to a decrease in the yield on loans
receivable, but is primarily due to the increase in the mortgage-backed security
portfolio which carries a lower overall yield than the loan portfolio. The
higher cost of funds is primarily due to an 33 basis point increase in
certificates of deposit.
FIGURE 18 - AVERAGE YIELDS AND COSTS
<TABLE>
<CAPTION>
Average Balance Sheets
- ----------------------------------------------------------------------------------------------------------------------------------
Year Ended December 31,
--------------------------------------------------------------------------------------
1997 1996 1995
--------------------------------------------------------------------------------------
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 $ 9,730 $ 860 8.84% $ 9,391 $ 843 8.98% $ 9,278 $ 847 9.13%
Mortgage-backed securities 2,690 198 7.36% 1,478 88 5.95% 771 47 6.10%
Investment securities 2,568 137 5.33% 2,185 124 5.68% 1,659 86 5.18%
Other interest earning assets 744 27 3.83% 604 28 4.64% 734 39 5.31%
-------- ------- ---- --------- ----- ---- ------- ------- ----
Total interest-earning assets 15,732 $ 1,222 7.77% 13,658 $1,083 7.93% 12,442 $ 1,019 8.19%
Non-interest earning assets 516 567 748
-------- --------- -------
Total assets $ 16,248 $ 14,225 $13,190
Interest-bearing liabilities:
Now Accounts $ 1,150 $ 13 1.13% $ 941 $ 9 0.96% $ 991 $ 12 1.21%
Savings account 3,346 87 2.60% 3,473 97 2.79% 3,327 142 4.27%
Money market accounts - - 0.00% - - 0.00% - - 0.00%
Certificates of deposit 9,888 571 5.77% 8,090 440 5.44% 7,391 382 5.17%
Other liabilities 12 - 0.00% 87 6 6.90% 21 - 0.00%
-------- ------- ---- --------- ----- ---- ------- ------- ----
Total interest-bearing liabilities 14,396 $ 671 4.66% 12,591 $ 552 4.38% 11,730 $ 536 4.57%
-------- ------- ---- --------- ----- ---- ------- ------- ----
Non-interest-bearing liabilities
Non-interest bearing deposits 264 191 112
Other liabilities 332 292 300
-------- --------- -------
Total Liabilities 14,992 13,074 12,142
Retained earnings 1,256 1,151 1,048
-------- --------- -------
Total liabilities and retained income $ 16,248 $ 14,225 $ 13,190
======== ======== ========
Net interest income $ 551 $ 531 $ 483
===== ===== =====
Interest rate spread 3.11% 3.55% 3.62%
---- ---- ----
Net yield on interest-earning assets 3.50% 3.89% 3.88%
---- ---- ----
Ratio of average interest-earning assets
to average interest bearing liabilities 109.26% 108.47% 106.07%
====== ====== ======
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 21
================================================================================
The following chart illustrates the Bank's spread and margin since December 31,
1995.
FIGURE 19 - SPREAD AND MARGIN CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 22
================================================================================
The Bank's unadjusted net loss for the year ended December 31, 1997 was $54
thousand and includes the previously mentioned one time expenses of $146
thousand on an after tax basis. Therefore, adjusted net income for 1997 is $92
thousand, consistent with the prior two periods.
FIGURE 20 - INCOME STATEMENT TRENDS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
For the Years
Ended December 31,
-------------------------------------
1997 1996 1995
-------------------------------------
Summary of Operations: ($ in thousands)
-------------------------------------
<S> <C> <C> <C>
Interest income $ 1,222 $ 1,074 $ 1,019
Interest expense 671 552 536
------- ------- -------
Net interest income 551 522 483
Provision for loan losses 73 2 31
------- ------- -------
Net interest income after provision for loan losses 478 520 452
Other income 63 74 73
Other expense 649 459 425
------- ------- -------
Income before income taxes (108) 135 100
Income tax expense (benefit) (54) 36 14
------- ------- -------
Net income (loss) $ (54) $ 99 $ 86
======= ======= =======
- ----------------------------------------------------------------------------------------------
</TABLE>
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 23
================================================================================
The ROAA and ROAE increased slightly in 1996 and, on an adjusted basis for 1997,
would have been 0.61% and 7.88%, respectively.
FIGURE 21 - PROFITABILITY TREND CHART
[GRAPHIC OMITTED]
Source: Offering Prospectus
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 24
================================================================================
- -------------------------------------------------
SUBSIDIARIES
- -------------------------------------------------
The Bank does not have any subsidiaries.
- -------------------------------------------------
LEGAL PROCEEDINGS
- -------------------------------------------------
There are various claims and lawsuits in which the Bank is periodically involved
incident to the Bank's business. In the opinion of management, no material loss
is expected from any such pending claims or law suits.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 25
================================================================================
2. Market Area Analysis
- -------------------------------------------------
MARKET AREA DEMOGRAPHICS
- -------------------------------------------------
The following tables summarize the demographics for the Bank's market. The
analysis defines the Bank's market as a three mile radius surrounding the Bank's
office. The five mile radius, Allegheny and Pennsylvania data is provided as
benchmarks for comparison purposes.
FIGURE 22 - POPULATION DEMOGRAPHICS
<TABLE>
<CAPTION>
POPULATION CHARACTERISTICS
3 Mile 5 Mile Allegheny PA TOTAL
------ ------ --------- --------
<S> <C> <C> <C> <C>
LAND AREA (miles) 28.08 48.81 730.20 44,819.69
POPULATION
1980 CENSUS 95,058 166,601 1,450,089 11,863,900
1990 CENSUS 86,133 153,248 1,336,449 11,881,643
1997 ESTIMATE 84,343 151,846 1,316,726 12,074,991
2002 PROJECTION 82,356 149,922 1,293,551 12,226,596
GROWTH 1980 TO 1990 -9.39% -8.01% -7.84% 0.15%
PROJECTED GROWTH 1990 TO 2002 -4.38% -2.17% -3.21% 2.90%
POPULATION DENSITY 1997 (persons / sq mile) 3,004.1 3,111.0 1,803.2 269.4
POPULATION BY URBAN VS. RURAL 86,080 153,382 1,336,449 11,881,643
URBAN 98.56% 97.76% 95.93% 68.94%
RURAL 1.44% 2.24% 4.07% 31.06%
POPULATION BY SEX - 1997 EST 84,343 151,846 1,316,726 12,074,991
MALE 46.21% 47.77% 47.01% 48.07%
FEMALE 53.79% 52.23% 52.99% 51.93%
MARITAL STATUS 71,938 125,465 1,098,905 9,542,976
SINGLE 28.06% 27.74% 28.09% 26.91%
MARRIED 51.88% 50.16% 51.13% 53.71%
SEPERATED/DIVORCED 8.64% 9.98% 9.06% 8.88%
WIDOWED 11.41% 12.12% 11.71% 10.50%
POPULATON BY RACE - 1997 EST 84,343 151,846 1,316,726 12,074,991
WHITE 93.71% 87.24% 85.93% 87.14%
BLACK 4.00% 11.04% 11.89% 9.20%
INDIAN 0.06% 0.11% 0.10% 0.12%
ASIAN 1.55% 0.91% 1.30% 1.42%
OTHER 0.06% 0.09% 0.09% 0.06%
HISPANIC 0.61% 0.61% 0.68% 2.07%
POPULATION BY AGE - 1997 EST 84,343 151,846 1,316,726 12,074,991
UNDER 5 YEARS 5.97% 6.47% 6.31% 6.75%
5 TO 14 YEARS 10.78% 12.16% 11.81% 13.31%
15 TO 24 YEARS 10.03% 11.34% 11.95% 13.01%
25 TO 34 YEARS 16.29% 15.37% 14.64% 14.31%
35 TO 44 YEARS 16.10% 15.93% 15.77% 15.74%
45 TO 54 YEARS 11.69% 11.47% 11.76% 11.97%
55 TO 64 YEARS 10.26% 9.87% 10.11% 9.25%
65 + YEARS 18.89% 17.37% 17.66% 15.66%
MEDIAN AGE 40.4 38.5 39.6 36.9
MEDIAN AGE OF HOUSEHOLDER 51.8 50.1 52.3 49.8
POPULATION 25+ BY EDUCATION LEVEL 69,116 120,470 1,053,906 9,084,701
ELEMENTARY 5.47% 6.82% 6.56% 8.40%
SOME HIGH SCHOOL 11.10% 15.47% 13.56% 16.02%
HIGH SCHOOL GRADUATE 32.61% 36.47% 35.00% 38.27%
SOME COLLEGE 17.67% 15.88% 17.16% 15.31%
ASSOCIATES DEGREE ONLY 6.00% 5.81% 6.15% 5.22%
BACHELORS DEGREE ONLY 18.27% 12.85% 13.95% 10.96%
GRADUATE DEGREE 8.88% 6.70% 7.62% 5.82%
POPULATION ENROLLED IN SCHOOL 18,404 33,875 311,846 2,829,553
PRE-PRIMARY - PUBLIC 4.49% 4.80% 4.27% 4.11%
PRE-PRIMARY - PRIVATE 4.68% 3.86% 3.90% 3.35%
ELEM/HIGH - PUBLIC 48.79% 52.07% 48.44% 54.80%
ELEM/HIGH - PRIVATE 10.68% 11.57% 10.18% 10.54%
COLLEGE - PUBLIC 20.67% 17.64% 22.41% 17.48%
COLLEGE - PRIVATE 10.69% 10.06% 10.79% 9.74%
</TABLE>
Source: Claritas
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 26
================================================================================
FIGURE 23 - HOUSEHOLD CHARACTERISTICS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
3 Mile 5 Mile Allegheny PA TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD CHARACTERISTICS
<S> <C> <C> <C> <C> <C>
HOUSEHOLDS
1980 CENSUS 36,672 61,093 540,550 4,219,609
1990 CENSUS 37,042 60,653 541,261 4,495,966
1997 ESTIMATE 36,641 60,575 536,949 4,587,220
2002 PROJECTION 36,161 60,321 531,501 4,677,784
GROWTH 1980 TO 1990 1.01% -0.72% 0.13% 6.55%
PROJECTED GROWTH 1990 TO 2002 -2.38% -0.55% -1.80% 4.04%
HOUSEHOLD SIZE
AVG PERSONS PER HH 1980 2.59 2.73 2.68 2.81
AVG PERSONS PER HH 1990 2.33 2.53 2.47 2.64
AVG PERSONS PER HH 1997 EST 2.30 2.51 2.45 2.63
AVG PERSONS PER HH 2002 PROJ 2.28 2.49 2.43 2.61
CHANGE 1980 TO 1997 -0.29 -0.22 -0.23 -0.18
POPULATION BY HOUSEHOLD TYPE 36,641 60,575 536,949 4,587,220
FAMILY HOUSEHOLDS 61.42% 66.39% 65.39% 69.46%
NON-FAMILY HOUSEHOLDS 34.89% 26.28% 28.56% 22.90%
GROUP QUARTERS 3.69% 7.33% 6.06% 7.64%
HOUSEHOLDS BY TYPE 37,042 60,653 541,261 4,495,966
SINGLE MALE 10.91% 10.18% 10.65% 9.56%
SINGLE FEMALE 21.97% 18.58% 19.01% 16.03%
MARRIED COUPLE 49.28% 50.25% 50.73% 55.65%
OTHER FAMILY - MALE HEAD 2.56% 3.40% 2.98% 3.27%
OTHER FAMILY - FEMALE HEAD 10.65% 13.69% 12.49% 11.28%
NON FAMILY - MALE HEAD 2.45% 2.18% 2.28% 2.50%
NON FAMILY - FEMALE HEAD 2.18% 1.73% 1.86% 1.71%
HOUSEHOLDS WITH CHILDREN 36,948 60,673 540,774 4,492,958
MARRIED COUPLE FAMILY 50.24% 51.29% 51.67% 56.70%
OTHER FAMILY - MALE HEAD 2.35% 3.28% 2.79% 3.05%
OTHER FAMILY - FEMALE HEAD 10.31% 13.00% 12.04% 10.95%
NON FAMILY 37.11% 32.42% 33.50% 29.30%
HOUSEHOLDS BY INCOME - 1997 EST 36,641 60,575 536,949 4,587,220
UNDER $5,000 2.73% 3.97% 3.95% 3.68%
$5,000 TO 10,000 5.84% 8.22% 8.05% 8.15%
$10,000 TO $15,000 6.43% 8.43% 8.11% 7.97%
$15,000 TO $25,000 13.86% 15.45% 15.04% 15.61%
$25,000 TO $35,000 13.09% 13.77% 13.23% 14.66%
$35,000 TO $50,000 18.63% 16.37% 16.58% 17.90%
$50,000 TO $75,000 20.64% 17.75% 18.43% 18.46%
$75,000 TO $100,000 9.80% 8.02% 8.37% 7.36%
$100,000 OR MORE 8.98% 8.02% 8.24% 6.21%
MEDIAN HOUSEHOLD INCOME - 1997 EST $44,259 $44,634 $41,955 $37,165
MEDIAN FAMILY INCOME - 1997 EST $54,458 $52,606 $50,651 $44,022
PER CAPITA INCOME - 1997 EST $24,659 $22,966 $23,463 $18,076
PUBLIC ASSISTANCE INCOME 36,948 60,673 540,774 4,492,958
WITH PUBLIC ASSISTANCE INCOME 4.59% 8.73% 7.98% 7.38%
NO PUBLIC ASSISTANCE INCOME 95.41% 91.27% 92.02% 92.62%
RETIREMENT INCOME 36,948 60,673 540,774 4,492,958
WITH RETIREMENT INCOME 21.62% 24.22% 23.07% 20.82%
NO RETIREMENT INCOME 83.19% 85.34% 85.60% 87.15%
HOUSEHOLDS BY NUMBER OF VEHICLES 36,994 60,685 541,261 4,495,966
NO VEHICLES 14.24% 20.50% 19.40% 15.16%
1 VEHICLE 43.50% 41.36% 38.94% 35.34%
2 VEHICLES 32.76% 29.86% 31.61% 35.70%
3+ VEHICLES 9.49% 8.28% 10.05% 13.80%
4 VEHICLES
5+ VEHICLES
ESTIMATED TOTAL VEHICLES 51,876 77,864 732,686 6,889,303
</TABLE>
Source: Claritas
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 27
================================================================================
- -------------------------------------------------
MARKET AREA DEPOSIT CHARACTERISTICS
- -------------------------------------------------
The Bank's branch, as mentioned earlier, is located in Carnegie, Pennsylvania.
Due to the nature of the Bank's service area, the competition was defined as all
branches within a three mile radius of the Bank's facility. Within 100 feet of
the Bank's branch, Mellon Bank, PNC and National City Bank each have a branch
with deposit levels at least two times that of Carnegie's. PNC was the only one
of the three to grow its deposits, but offers a slightly more convenient
location. Carnegie, despite its lack of convenience services, has generated
growth of almost 50% over the four year period ended June 30, 1997.
FIGURE 24 - MARKET SHARE
<TABLE>
<CAPTION>
Carnegie: Market Share by Institution
Total Mkt Share $ Growth % Growth Avg Branch Efficiency
Institution 1997 1997 1993 - 1997 1993 - 1997 1997 Count Ratio
- ------------------------------------------------------------------------------------------------------------
Total $613,540 100.00% $29,402 5.03% $47,195 13.00 100.0%
============================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
CARNEGIE SVG BK $15,080 2.46% $4,993 49.50% $15,080 1 32.0%
FIRST FS&LA $46,429 7.57% ($1,167) -2.45% $46,429 1 98.4%
LINCOLN SVGS BK $0 0.00% ($60,215) -100.00% $0 0 0.0%
MELLON BK NA $110,818 18.06% ($1,922) -1.70% $55,409 2 117.4%
NATIONAL CITY BK OF $127,017 20.70% $37,683 42.18% $63,509 2 134.6%
PNC BANK NA $168,336 27.44% $6,848 4.24% $56,112 3 118.9%
UNION ELECTRIC STEEL $10,495 1.71% $765 7.86% $10,495 1 22.2%
DOLLAR BANK, FSB $66,216 10.79% $7,849 13.45% $66,216 1 140.3%
IRON AND GLASS BANK $2,566 0.42% $2,566 0.00% $2,566 1 5.4%
BELL FS&LA $66,583 10.85% $32,002 92.54% $66,583 1 141.1%
PARKVALE SAVINGS BANK $0 0.00% $0 0.00% $0 0 0.0%
</TABLE>
Source: FDIC data, FinPro calculations.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 28
================================================================================
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 ("Comparable
Group") was selected from a universe of 394 public thrifts as of March 11, 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, interest rate 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
economies of scale plays in a small organization.
The selection screens utilized to identify possible Comparables from the list of
394 public thrifts at March 11, 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 price to book trading multiple had to be less than or equal to
200% to eliminate those institutions with speculation included in
their price.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 29
================================================================================
This resulted in 12 institutions.
FIGURE 25 - POTENTIAL COMPARABLES
<TABLE>
<CAPTION>
Number
of
Short Name Exchange City State Offices IPO Date
- ------------- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CSB Financial Group Inc. NASDAQ Centralia IL 2 10/09/95
First Lancaster Bancshares NASDAQ Lancaster KY 1 07/01/96
Gilmer Financial Svcs, Inc NASDAQ Gilmer TX 1 02/09/95
Home Building Bancorp NASDAQ Washington IN 2 02/08/95
Home Financial Bancorp NASDAQ Spencer IN 1 07/02/96
Joachim Bancorp Inc. NASDAQ De Soto MO 1 12/28/95
London Financial Corp. NASDAQ London OH 1 04/01/96
Mitchell Bancorp Inc. NASDAQ Spruce Pine NC 1 07/12/96
NS&L Bancorp Inc. NASDAQ Neosho MO 2 06/08/95
Pennwood Bancorp Inc. NASDAQ Pittsburgh PA 3 07/15/96
Reliance Bancshares Inc. NASDAQ Milwaukee WI 1 04/19/96
S. Carolina Community Banchr NASDAQ Winnsboro SC 3 07/07/94
</TABLE>
Two institutions were eliminated from this list for the following reasons.
FIGURE 26 - COMPARABLES ELIMINATED
Ticker Short Name City State
-------------------------- ------------------
Lack of market data
-------------------
GLMR Gilmer Financial Svcs, Inc. Gilmer TX
Pending Acquisition
-------------------
JOAC Joachim Bancorp Inc. De Soto MO
The list of comparable institutions is as follows:
FIGURE 27 - COMPARABLE GROUP
<TABLE>
<CAPTION>
Corporate
--------------------------------------------------------------------------------------
Deposit
Number Insurance
of Agency Conversion
Ticker Short Name Exchange City State Offices IPO Date (BIF/SAIF) Type
- -------------------------- --------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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
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
NSLB NS&L Bancorp Inc. NASDAQ Neosho MO 2 06/08/95 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
Carnegie Savings Bank Carnegie PA 1 BIF Regular
Variance to the Comparable Median
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 30
================================================================================
- -------------------------------------------------
SELECTION CRITERIA
- -------------------------------------------------
Excluded from the Comparable Group were institutions that were pending mergers
or acquisitions along with companies whose prices appear to be distorted by
speculative factors or unusual operating conditions. 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
Carnegie 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. 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 $36.1 million to $57.8 million in total assets with an
average of $45.2 million. The Bank's asset size was $16.7 million as of December
31, 1997 and will be $18.0 million on a proforma basis at the midpoint of the
valuation range. The smallest Comparable institution is still twice as large as
Carnegie, however, the institutions selected are the only actively traded
institutions under $50 million.
2. Profitability The Comparable Group have ROAAs averaging 0.96% and ROAEs
averaging 4.00% 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 0.49% to a high of 1.51% while the ROAE measure ranged
from a low of 1.98% to a high of 5.70%. The Bank had an ROAA of (0.33)% and ROAE
of (4.28)% for the twelve month period ending December 31, 1997. However, the
Bank's ratios include the previously mentioned one time events. On a normalized,
tax adjusted basis the ROAA and ROAE would be 0.61% and 7.88%, respectively.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 31
================================================================================
3. Capital level The average equity to assets ratio for the Comparable Group was
24.50% with a high of 50.09% and a low of 13.76%. At December 31, 1997, the Bank
had an equity to assets ratio of 7.00%. On a proforma basis, at the midpoint the
Bank would have an equity to assets ratio of 13.82%.
4. Balance Sheet Mix At December 31, 1997, the Bank had a total net loan to
asset ratio of 57.32%. The average loan to asset ratio for the Comparables was
72.10%, ranging from a low of 57.23% to a high of 89.75%. On the liability side
the Bank's deposit to asset ratio was 90.76% at December 31, 1997 while the
Comparables average was 66.68%, ranging from 39.68% to 80.90%. Additionally, the
Bank had no borrowings as of December 31, 1997 and the Comparables averaged
7.45% with a range of 0.00% to 23.83%.
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.
- -------------------------------------------------
COMPARABLE GROUP PROFILES
- -------------------------------------------------
o CSB Financial Group Inc. CSBF is a SAIF insured institution that
operates 2 branches in Centralia, Illinois and has $47.6 million in
assets. CSBF had the highest level of intangibles, 5.87%, efficiency
ratio, 75.34%, and overhead ratio, 73.70%. CSBF has the lowest loans
to deposits, 75.10%, loans to assets, 57.23%, interest income to
average assets, 6.65%, and loan growth rate, (2.11)% of the Comparable
Group. CSBF was selected to the Group based on asset size, number of
offices, profitability, and balance sheet mix.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 32
================================================================================
o First Lancaster Bancshares FLKY is a SAIF insured institution that has
$49.9 million in assets, and operates 1 branch in Lancaster, Kentucky.
FLKY had the highest loans to deposits ratio, 193.98%, loans to assets
ratio, 89.75%, borrowings to assets ratio, 23.83%, nonperforming
assets to assets ratio, 2.25%, and asset growth rate, 35.33%. FLKY had
the lowest reserves to nonperforming loans ratio, 21.68%, reserves to
nonperforming assets plus 90 day delinquents ratio, 8.62%, 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 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
core capital ratio, 10.77%, total risk based capital ratio, 21.56%,
asset growth rate, (4.79)%, and deposit growth rate, (7.69)%. It was
selected as a comparable based on its asset size, balance sheet mix,
and profitability.
o Home Financial Bancorp HWEN is a SAIF insured institution with 1
office in Spencer, Indiana and assets of $43.5 million. Home Financial
had the highest nonperforming asset to equity ratio, 9.61%, interest
income to average assets, 8.60%, interest expense to average assets,
4.36%, and noninterest expense to average assets, 3.35%. 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%, and the lowest equity to
assets ratio, 13.76%, equity plus reserves to asset ratio, 14.24%, and
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 $36.1 million in assets.
MBSP has the highest nonperforming loan to loan ratio, 1.88%, return
on average assets, 1.51%, net interest margin, 5.10%, net interest
income to average assets, 4.95% and deposit growth rate, 11.09%. MBSP
had the lowest efficiency and overhead ratios, 48.69% and 48.54%,
respectively. It was included as a comparable based on its asset size
and number of offices.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 33
================================================================================
o NS&L Bancorp Inc. NSLB is a SAIF insured institution that operates 2
branches in Neosho, Missouri and has $57.8 million in assets. NSLB had
the highest level of assets, $57.8 million, reserves to NPLs, 612.5%,
and noninterest income to average assets, 0.40%. NSLB had the lowest
reserves to loans ratio, 0.14%, net interest margin, 3.27%, and net
interest income to average assets, 3.18% of the Comparable Group. NSLB
was selected the Group based on asset size, number of offices,
profitability, and balance sheet mix.
o Pennwood Bancorp Inc. PWBK is a SAIF insured institution that operates
3 offices in Pittsburgh, Pennsylvania. The institution has assets of
$47.2 million. PWBK has the highest loan growth rate, 41.99%. 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 $44.5 million in assets. RELI
has the highest equity to assets ratio, 50.09%, core capital ratio,
46.47%, and total risk based capital ratio, 70.12%. RELI has the
lowest deposits to assets ratio, 39.68%, nonperforming loans to loans
ratio, 0.00%, nonperforming assets to assets ratio, 0.00%, and
interest expense to average assets, 2.59%. RELI was selected to the
Group based on its asset size and growth rates.
o S. Carolina Community Bancshrs SCCB is a SAIF insured institution with
3 offices in Winnsboro, South Carolina and $45.1 million in assets.
SCCB has the highest reserves to loans ratio, 0.81%. SCCB was selected
as a comparable based on its asset size, balance sheet mix and
profitability.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 34
================================================================================
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 prospectus or the audited financials.
FIGURE 28 - KEY FINANCIAL INDICATORS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
The Bank at Comparable Group
December 31, 1997 Quarter Average
(Most Recent
(Quarter)
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Balance Sheet Data
- -------------------------------------------------------------------------------------------
Gross Loans to Deposits 63.15% 115.43%
- -------------------------------------------------------------------------------------------
Total Net Loans to Assets 57.32% 72.10%
- -------------------------------------------------------------------------------------------
Deposits to Assets 90.76% 66.68%
- -------------------------------------------------------------------------------------------
Borrowed Funds to Assets 0.00% 7.45%
- -------------------------------------------------------------------------------------------
Balance Sheet Growth
- -------------------------------------------------------------------------------------------
Asset Growth Rate 10.75% 4.75%
- -------------------------------------------------------------------------------------------
Loan Growth Rate -2.31% 13.07%
- -------------------------------------------------------------------------------------------
Deposit Growth Rate 13.45% 3.75%
- -------------------------------------------------------------------------------------------
Capital
- -------------------------------------------------------------------------------------------
Equity to Assets 7.00% 24.50%
- -------------------------------------------------------------------------------------------
Tangible Equity to Assets 7.03% 24.39%
- -------------------------------------------------------------------------------------------
Intangible Assets to Equity 0.00% 0.66%
- -------------------------------------------------------------------------------------------
Regulatory Core Capital to Assets 7.03% 22.07%
- -------------------------------------------------------------------------------------------
Equity + Reserves to Assets 7.68% 24.91%
- -------------------------------------------------------------------------------------------
Total Capital to Risk Adjusted Assets 15.45% 39.95%
- -------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 35
================================================================================
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
The Bank at Comparable Group
December 31, 1997 Quarter Average
(Most Recent
(Quarter)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Asset Quality
- -----------------------------------------------------------------------------------------
Non-Performing Loans to Loans 0.44% 0.96%
- -----------------------------------------------------------------------------------------
Reserves to Non-Performing Loans 273.81% 140.54%
- -----------------------------------------------------------------------------------------
Non-Performing Assets to Assets 3.12% 0.98%
- -----------------------------------------------------------------------------------------
Non-Performing Assets to Equity 44.62% 4.42%
- -----------------------------------------------------------------------------------------
Reserves to Loans 1.20% 0.56%
- -----------------------------------------------------------------------------------------
Reserves to Non-Performing Assets + 90 Days Del. 22.03% 56.72%
- -----------------------------------------------------------------------------------------
Profitability
- -----------------------------------------------------------------------------------------
Return on Average Assets -0.33% 0.96%
- -----------------------------------------------------------------------------------------
Return on Average Equity -4.28% 4.00%
- -----------------------------------------------------------------------------------------
Income Statement
- -----------------------------------------------------------------------------------------
Net Interest Margin 3.50% 4.17%
- -----------------------------------------------------------------------------------------
Interest Income to Average Assets 7.52% 7.62%
- -----------------------------------------------------------------------------------------
Interest Expense to Average Assets 4.13% 3.57%
- -----------------------------------------------------------------------------------------
Net Interest Income to Average Assets 3.39% 4.05%
- -----------------------------------------------------------------------------------------
Noninterest Income to Average Assets 0.39% 0.19%
- -----------------------------------------------------------------------------------------
Noninterest Expense to Average Assets 3.99% 2.71%
- -----------------------------------------------------------------------------------------
Efficiency Ratio 105.70% 64.16%
- -----------------------------------------------------------------------------------------
Overhead Ratio 106.35% 62.48%
- -----------------------------------------------------------------------------------------
</TABLE>
Source: The Bank Offering Prospectus, FinPro calculations and SNL Securities
Note: All of the Bank data is for the year ended December 31, 1997.
Note: All of the Comparable data is as of the most recent quarter.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 36
================================================================================
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 and the
aggregate ratios for all public thrifts.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 37
================================================================================
- -------------------------------------------------
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/
($000) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 47,602 75.10 57.23 76.21 0.00
FLKY First Lancaster Bancshares 49,880 193.98 89.75 46.27 23.83
HBBI Home Building Bancorp 42,430 90.16 68.17 75.61 9.43
HWEN Home Financial Bancorp 43,504 134.87 80.32 59.55 22.99
LONF London Financial Corp. 37,916 94.91 76.78 80.90 4.48
MBSP Mitchell Bancorp Inc. 36,103 142.96 80.82 56.54 0.00
NSLB NS&L Bancorp Inc. 57,823 79.72 61.46 77.09 1.73
PWBK Pennwood Bancorp Inc. 47,211 84.23 64.71 76.82 3.07
RELI Reliance Bancshares Inc. 44,544 156.23 61.99 39.68 8.98
SCCB S. Carolina Community Bancshrs 45,092 102.09 79.79 78.16 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Average 45,211 115.43 72.10 66.68 7.45
Median 44,818 98.50 72.48 75.91 3.78
Maximum 57,823 193.98 89.75 80.90 23.83
Minimum 36,103 75.10 57.23 39.68 0.00
Carnegie Savings Bank 16,723 63.15 57.32 90.76 0.00
Variance to the Comparable Median (28,095) (35.35) (15.16) 14.85 (3.78)
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
Liquidity - The liquidity of the Bank and the Comparable Group appear
similar and were sufficient to meet all regulatory guidelines.
Asset Composition - The Bank's net loan to asset ratio of 57.32% is
well below the average for the Comparable Group of 72.10%.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 38
================================================================================
22
Funding Mix - The Bank is funded primarily through deposits, 90.76% of
assets, and retained earnings, 7.00% of assets. The Comparable Group
has a greater reliance on equity and borrowings than Carnegie with an
average deposit to asset ratio of 66.68%, a borrowing ratio of 7.45% of
assets and equity to assets of 24.50%. The Bank's lack of borrowings
leaves room for an additional funding source in the future and its
equity to assets ratio after the conversion will be 13.82%.
Figure 30 illustrates, the Bank has the highest deposit growth rate of
13.45%.
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. 0.16 (2.11) 2.67
FLKY First Lancaster Bancshares 35.33 37.59 6.14
HBBI Home Building Bancorp (4.79) 1.69 (7.69)
HWEN Home Financial Bancorp 11.46 17.08 6.24
LONF London Financial Corp. 1.62 3.80 6.52
MBSP Mitchell Bancorp Inc. 5.56 8.25 11.09
NSLB NS&L Bancorp Inc. (0.98) 12.30 5.15
PWBK Pennwood Bancorp Inc. 1.08 41.99 3.58
RELI Reliance Bancshares Inc. (0.14) 9.48 (1.41)
SCCB S. Carolina Community Bancshrs (1.80) 0.58 5.20
- ----------------------------------------------------------------------------------------------------
Average 4.75 13.07 3.75
Median 0.62 8.87 5.18
Maximum 35.33 41.99 11.09
Minimum (4.79) (2.11) (7.69)
Carnegie Savings Bank 10.75 (2.31) 13.45
Variance to the Comparable Median 10.13 (11.18) 8.28
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 39
================================================================================
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>
CSBF CSB Financial Group Inc. 23.10 22.04 5.87 21.41 23.46 48.40
FLKY First Lancaster Bancshares 28.50 28.50 0.00 27.40 28.81 39.80
HBBI Home Building Bancorp 14.06 14.06 0.00 10.77 14.26 21.56
HWEN Home Financial Bancorp 16.99 16.99 0.00 14.40 17.62 25.50
LONF London Financial Corp. 13.76 13.76 0.00 16.00 14.24 31.48
MBSP Mitchell Bancorp Inc. 40.13 40.13 0.00 32.30 40.65 57.00
NSLB NS&L Bancorp Inc. 19.74 19.62 0.73 15.70 19.82 34.30
PWBK Pennwood Bancorp Inc. 17.98 17.98 0.00 17.98 18.50 32.39
RELI Reliance Bancshares Inc. 50.09 50.09 0.00 46.47 50.44 70.12
SCCB S. Carolina Community Bancshrs 20.68 20.68 0.00 18.30 21.33 38.90
- ------------------------------------------------------------------------------------------------------------------------------------
Average 24.50 24.39 0.66 22.07 24.91 39.95
Median 20.21 20.15 0.00 18.14 20.58 36.60
Maximum 50.09 50.09 5.87 46.47 50.44 70.12
Minimum 13.76 13.76 0.00 10.77 14.24 21.56
Carnegie Savings Bank 7.00 7.03 0.00 7.03 7.68 15.45
Variance to the Comparable Median (13.21) (13.12) 0.00 (11.11) (12.89) (21.15)
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
Capitalization - The Comparable Group's average equity to assets ratio
of 24.50% is higher than the Bank's ratio of 7.00%, and even the lowest
ratio in the Comparable Group will be above the Bank's pro forma equity
to assets ratio of 13.82% 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. The Comparable Group has a limited level of intangibles
averaging 0.66% of equity. Thrifts trade more on tangible book than on
book. 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 base has increased its reliance on the wholesale market and the
additional capital will most likely increase this reliance. The Bank's market
value should be adjusted downward in comparison to the Comparable Group for this
measure.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 40
================================================================================
- -------------------------------------------------
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>
CSBF CSB Financial Group Inc. NA NA NA NA 0.63 52.91
FLKY First Lancaster Bancshares 1.55 21.68 2.25 7.88 0.34 8.62
HBBI Home Building Bancorp 0.99 29.02 0.67 4.79 0.29 29.02
HWEN Home Financial Bancorp 1.23 64.10 1.63 9.61 0.79 38.73
LONF London Financial Corp. 0.26 238.16 0.20 1.46 0.62 238.16
MBSP Mitchell Bancorp Inc. 1.88 34.31 1.77 4.41 0.64 29.42
NSLB NS&L Bancorp Inc. 0.02 612.50 0.01 0.07 0.14 36.57
PWBK Pennwood Bancorp Inc. 1.07 74.85 0.74 4.13 0.80 34.66
RELI Reliance Bancshares Inc. 0.00 NM 0.00 0.00 0.57 NM
SCCB S. Carolina Community Bancshrs 1.64 49.66 1.53 7.41 0.81 42.40
- ------------------------------------------------------------------------------------------------------------------------------------
Average 0.96 140.54 0.98 4.42 0.56 56.72
Median 1.07 56.88 0.74 4.41 0.63 36.57
Maximum 1.88 612.50 2.25 9.61 0.81 238.16
Minimum 0.00 21.68 0.00 0.00 0.14 8.62
Carnegie Savings Bank 0.44 273.81 3.12 44.62 1.20 22.03
Variance to the Comparable Median (0.63) 216.93 2.38 40.21 0.57 (14.54)
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
The Bank has a lower level of non-performing loans ("NPL") to total loans at
0.44% when compared to the Comparable Group at 0.96%. However, the Bank recently
bought a property at sheriff sale for $480 thousand, with an appraised value of
$540 thousand, causing the nonperforming assets to assets ratio to be 3.12% at
December 31, 1997. Based on the low level of nonperforming loans, the appraised
value of the other real estate and solid reserve levels, no adjustment is
warranted for this element.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 41
================================================================================
- -------------------------------------------------
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 - 42
================================================================================
The Bank's net loss, for the year ended December 31, 1997, of $54 thousand was
due to one time expenses of $146 thousand, tax adjusted. On a normalized basis,
the Bank's net income for 1997 would have been $92 thousand.
FIGURE 33 - NET INCOME TREND
[GRAPHIC OMITTED]
Sources: Offering Circular
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 43
================================================================================
On an adjusted basis, the Bank's ROAA and ROAE would have been 0.61% and 7.88%,
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, therefore, no adjustment is warranted.
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>
CSBF CSB Financial Group Inc. 0.49 1.98
FLKY First Lancaster Bancshares 1.17 3.64
HBBI Home Building Bancorp 0.75 5.70
HWEN Home Financial Bancorp 0.81 4.55
LONF London Financial Corp. 1.08 5.62
MBSP Mitchell Bancorp Inc. 1.51 3.62
NSLB NS&L Bancorp Inc. 0.72 3.63
PWBK Pennwood Bancorp Inc. 0.96 5.14
RELI Reliance Bancshares Inc. 1.07 2.18
SCCB S. Carolina Community Bancshrs 1.00 3.95
- -------------------------------------------------------------------------------------
Average 0.96 4.00
Median 0.98 3.80
Maximum 1.51 5.70
Minimum 0.49 1.98
Carnegie Savings Bank (0.33) (4.28)
Variance to the Comparable Median (1.31) (8.08)
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 44
================================================================================
FIGURE 35 - INCOME STATEMENT DATA
<TABLE>
<CAPTION>
Income Statement as of The Most Recent Quarter
----------------------------------------------------------------------------------------
Net Interest Interest Net InterestNoninterest Noninterest 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. 3.35 6.65 3.41 3.24 0.22 2.73 75.34 73.70
FLKY First Lancaster Bancshares 4.76 8.34 3.65 4.69 0.00 2.71 57.70 57.70
HBBI Home Building Bancorp 3.54 7.56 4.14 3.43 0.25 2.50 68.18 65.89
HWEN Home Financial Bancorp 4.39 8.60 4.36 4.24 0.32 3.35 74.61 72.71
LONF London Financial Corp. 3.73 7.66 3.97 3.69 0.18 2.34 60.61 58.70
MBSP Mitchell Bancorp Inc. 5.10 7.71 2.76 4.95 0.01 2.41 48.69 48.54
NSLB NS&L Bancorp Inc. 3.27 6.70 3.51 3.18 0.40 2.46 68.48 64.48
PWBK Pennwood Bancorp Inc. 4.43 7.91 3.70 4.20 0.25 2.85 62.07 59.81
RELI Reliance Bancshares Inc. 5.02 7.39 2.59 4.80 0.05 3.11 64.15 63.80
SCCB S. Carolina Community Bancshrs 4.14 7.68 3.62 4.06 0.25 2.68 61.79 59.42
- ----------------------------------------------------------------------------------------------------------------------------------
Average 4.17 7.62 3.57 4.05 0.19 2.71 64.16 62.48
Median 4.27 7.67 3.64 4.13 0.24 2.70 63.11 61.81
Maximum 5.10 8.60 4.36 4.95 0.40 3.35 75.34 73.70
Minimum 3.27 6.65 2.59 3.18 0.00 2.34 48.69 48.54
Carnegie Savings Bank 3.50 7.52 4.13 3.39 0.39 3.99 105.70 106.35
Variance to the Comparable Medi (0.76) (0.15) 0.49 (0.74) 0.15 1.30 42.59 44.55
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
Compared to the Comparable Group, the Bank's yield on assets is 15 basis points
lower, the cost of funds is 49 basis points higher, noninterest income is 15
basis points higher, and the adjusted noninterest expense (the adjustment is for
$153 thousand in pre-tax benefit accruals, tax impacted) is 27 basis points
higher, resulting in a 76 basis point disadvantage.
FIGURE 36 - CORE EARNINGS DATA
<TABLE>
<CAPTION>
Income
----------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ
- ------------------------------------------------------------------------------------------------------------------------------------
Comparable Thrift Data
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 234 219 0.25 0.27 97 92 0.11
FLKY First Lancaster Bancshares 508 508 0.55 0.55 146 146 0.16
HBBI Home Building Bancorp 329 316 1.09 1.14 69 64 0.22
HWEN Home Financial Bancorp 335 247 0.29 0.38 79 46 0.06
LONF London Financial Corp. 411 381 0.80 0.86 121 117 0.24
MBSP Mitchell Bancorp Inc. 523 523 0.60 0.60 109 109 0.13
NSLB NS&L Bancorp Inc. 426 418 0.65 0.66 94 94 0.14
PWBK Pennwood Bancorp Inc. 458 471 0.86 0.84 112 83 0.16
RELI Reliance Bancshares Inc. 499 485 0.20 0.21 129 126 0.05
SCCB S. Carolina Community Bancshrs 462 462 0.70 0.70 70 70 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Average 419 403 0.60 0.62 103 95 0.14
Median 442 440 0.63 0.63 103 93 0.14
Maximum 523 523 1.09 1.14 146 146 0.24
Minimum 234 219 0.20 0.21 69 46 0.05
Carnegie Savings Bank (54) 99
Variance to the Comparable Median (496) (341)
</TABLE>
Sources: SNL and Audited Financial Data, FinPro Computations
Currently, investors are focusing on earnings sustainability as the interest
rate volatility has caused wide 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.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 45
================================================================================
The Bank's earnings, in absolute dollars, are a fraction of the Comparables
which allows little room to absorb unforeseen expenses. 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 - 46
================================================================================
- -------------------------------------------------
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 - This is a densely populated urban market, with age
distributions higher than the county and state in the 25 to 34, 35 to
44 and 65 and over age ranges, education levels higher than average,
income distributions higher than the county and state for income levels
$35,000 and above and a median property value above that of the county.
Customer Segmentation Data - This market has approximately 37,000
households of which 45% are in the Mainstream Singles and 37% are in
the Mainstream Families customer groups. Of the customer segments,
almost 20% are considered to be Settled In and 13% are On Their Own
(see pages 4-11 through 4-14 for descriptions).
Product Propensity Data - The retail market has an estimated $857
million in deposits, $1.0 billion in loans and $827 million in
investments. The propensities are highest for noninterest DDA accounts
and home equity, auto, student, other personal loans, and personal
lines of credit. An above average number of households used a branch
within the last month, have ATM or debit cards, pay their bills by
phone, have direct deposit and use electronic banking or home banking
services.
Business Data - Of the businesses in a 3 mile radius, 42.6% are in the
services industry, though the per household density is less than that
of the county.
Competitive Data - The Bank's branch, as mentioned earlier, is located
in Carnegie, Pennsylvania. Due to the nature of the Bank's service
area, the competition was defined as all branches within a three mile
radius of the Bank's facility. Within 100 feet of the Bank's branch,
Mellon Bank, PNC and National City Bank each have a branch with deposit
levels at least two times that of Carnegie's. PNC was the only one of
the three to grow its deposits, but offers a slightly more convenient
location. Carnegie, despite its lack of convenience services, has
generated growth of almost 50% over the four year period ended June 30,
1997.
Based on these factors no adjustment is warranted for this factor.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 47
================================================================================
- -------------------------------------------------
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 - 48
================================================================================
- -------------------------------------------------
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 over subscribing
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.
FIGURE 37 - DIVIDENDS 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 45.45
HBBI Home Building Bancorp 1.270 26.32
HWEN Home Financial Bancorp 1.143 26.32
LONF London Financial Corp. 1.574 609.30
MBSP Mitchell Bancorp Inc. 2.406 66.67
NSLB NS&L Bancorp Inc. 2.857 75.76
PWBK Pennwood Bancorp Inc. 1.800 38.10
RELI Reliance Bancshares Inc. 0.000 0.00
SCCB S. Carolina Community Bancshrs 2.977 88.57
- --------------------------------------------------------------------------------
Average 1.73 97.65
Median 1.69 41.78
Maximum 3.31 609.30
Minimum 0.00 0.00
Carnegie Savings Bank
Variance to the Comparable Median
Eight of the ten Comparable institutions had declared dividends. The average
dividend payout ratio for the Comparable Group was 97.65%, ranging from a high
of 609.30% to a low of 0.00%. The Bank will have the capital levels to afford to
pay dividends and, therefore, no adjustment is indicated for this factor.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 49
================================================================================
- -------------------------------------------------
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 38 - MARKET CAPITALIZATION DATA
<TABLE>
<CAPTION>
Market Data as of The Most Recent Quarter
------------------------------------------------------------------------------
MRQ MRQ MRQ MRQ 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. 11.44 13.500 13.500 10.000 13.09 12.32
FLKY First Lancaster Bancshares 14.42 15.938 16.375 14.500 14.92 14.92
HBBI Home Building Bancorp 7.36 21.250 23.750 18.500 20.61 20.61
HWEN Home Financial Bancorp 8.13 9.250 9.250 6.375 7.95 7.95
LONF London Financial Corp. 7.78 16.750 21.000 14.000 10.23 10.23
MBSP Mitchell Bancorp Inc. 15.48 17.000 18.000 14.000 15.56 15.56
NSLB NS&L Bancorp Inc. 12.00 18.875 19.500 13.625 16.64 16.52
PWBK Pennwood Bancorp Inc. 11.01 19.750 19.750 13.000 16.76 16.76
RELI Reliance Bancshares Inc. 22.74 9.500 9.688 6.625 8.71 8.71
SCCB S. Carolina Community Bancshrs 12.54 22.500 25.250 15.000 15.99 15.99
- ----------------------------------------------------------------------------------------------------------------------
Average 12.29 16.43 17.61 12.56 14.05 13.96
Median 11.72 16.88 18.75 13.81 15.24 15.24
Maximum 22.74 22.50 25.25 18.50 20.61 20.61
Minimum 7.36 9.25 9.25 6.38 7.95 7.95
Carnegie Savings Bank
Variance to the Comparable Median
</TABLE>
The market capitalization values of the Comparable Group range from a low of
$7.36 million to a high of $22.74 million with an average market capitalization
of $12.29 million. The Bank expects to have $2.5 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 - 50
================================================================================
- -------------------------------------------------
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 as attracted a significant
level of attention. The market for public offerings is driven by the lack of
supple 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 39 - RECENT STANDARD CONVERSION PERFORMANCE
<TABLE>
<CAPTION>
---------------------------------------------
Percent Change from IPO
---------------------------------------------
After After After After
1 Day 1 Week 1 Month 3 Months
Ticker Short Name IPO Date (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp 02/18/98 63.13% 64.38% NA NA
HFBC HopFed Bancorp Inc. 02/09/98 68.13% 60.00% 67.50% NA
TSBK Timberland Bancorp Inc. 01/13/98 45.00% 60.00% 60.00% NA
MYST Mystic Financial Inc. 01/09/98 44.38% 56.25% 50.00% NA
UTBI United Tennessee Bankshares 01/05/98 47.50% 37.50% 42.50% NA
-----------------------------------------------------------------------------------------------------------
Q1`98 Average 53.63% 55.63% 55.00% -
Median 47.50% 60.00% 55.00% -
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
1998 YTD Average 53.63% 55.63% 55.00% -
Median 47.50% 60.00% 55.00% -
-----------------------------------------------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 12/31/97 61.25% 55.00% 48.75% NA
UCBC Union Community Bancorp 12/29/97 46.88% 42.50% 42.50% NA
WSBI Warwick Community Bancorp 12/23/97 56.25% 70.00% 56.25% NA
SIB Staten Island Bancorp Inc. 12/22/97 58.86% 61.98% 59.90% NA
HCBC High Country Bancorp Inc. 12/10/97 44.38% 50.63% 45.00% 50.00%
FSFF First SecurityFed Financial 10/31/97 50.63% 51.25% 60.63% 46.88%
OTFC Oregon Trail Financial Corp. 10/06/97 67.50% 63.75% 61.25% 67.50%
RVSB Riverview Bancorp Inc. 10/01/97 31.88% 36.25% 32.50% 77.50%
SHSB SHS Bancorp Inc. 10/01/97 47.50% 62.50% 60.00% 67.50%
-----------------------------------------------------------------------------------------------------------
Q4 `97 Average 51.68% 54.87% 51.86% 61.88%
Median 50.63% 55.00% 56.25% 67.50%
-----------------------------------------------------------------------------------------------------------
OSFS Ohio State Financial Services 09/29/97 55.00% 53.70% 49.60% 52.50%
FSPT FirstSpartan Financial Corp. 07/09/97 83.44% 85.00% 78.13% 91.88%
GOSB GSB Financial Corp. 07/09/97 46.25% 48.75% 43.75% 55.00%
FBNW FirstBank Corp. 07/02/97 58.13% 55.63% 77.50% 72.50%
CFBC Community First Banking Co. 07/01/97 59.38% 65.00% 70.00% 87.50%
-----------------------------------------------------------------------------------------------------------
Q3`97 Average 60.44% 61.62% 63.80% 71.88%
Median 58.13% 55.63% 70.00% 72.50%
-----------------------------------------------------------------------------------------------------------
HCBB HCB Bancshares Inc. 05/07/97 26.25% 27.50% 28.75% 38.75%
PSFC Peoples-Sidney Financial Corp. 04/28/97 25.63% 28.75% 32.50% 55.00%
HMLK Hemlock Federal Financial Corp 04/02/97 28.75% 28.75% 30.00% 40.00%
GSLA GS Financial Corp. 04/01/97 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 29.38% 22.50% 26.25% 37.50%
EFBC Empire Federal Bancorp Inc. 01/27/97 32.50% 35.00% 37.50% 31.25%
FAB FIRSTFED AMERICA BANCORP INC. 01/15/97 36.25% 41.25% 48.75% 38.75%
RSLN Roslyn Bancorp Inc. 01/13/97 50.00% 59.38% 60.00% 58.75%
AFBC Advance Financial Bancorp 01/02/97 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 46.03% 48.35% 49.11% 55.79%
Median 46.88% 50.63% 48.75% 52.50%
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
1/1/97 to Average 47.38% 49.65% 49.98% 55.79%
3/11/98 Median 47.19% 52.48% 48.75% 52.50%
-----------------------------------------------------------------------------------------------------------
</TABLE>
Source: SNL Securities, FinPro calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 51
================================================================================
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 - 52
================================================================================
- -------------------------------------------------
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
IPOs 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 1997 and 1998 with IPO's popping over 40% 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 stocks 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 - 53
================================================================================
- -------------------------------------------------
MARKET FOR SEASONED THRIFT
STOCKS
- -------------------------------------------------
Data for all public thrifts as of March 11, 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 40 - SNL THRIFT INDEX CHART
[GRAPHIC OMITTED]
Source: SNL Securities
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 54
================================================================================
FIGURE 41 - HISTORICAL SNL INDEX
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
SNL THRIFT INDEX MONTHLY PERFORMANCE
January 2, 1992 to March 11, 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%
11-Mar 834.7 480.1% 315.1% 230.6% 244.5% 121.7% 72.6% 2.5%
</TABLE>
Source: SNL Securities
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 55
================================================================================
FIGURE 42 - EQUITY INDICES
[GRAPHIC OMITTED]
Index Comparisons
--------------------------------------------------
SNL S&P DJIA
--------------------------------------------------
6/30/269.6 444.3 3,625.0
12/30/244.7 459.3 3,834.4
6/30/313.5 544.8 4,556.1
12/29/376.5 615.9 5,117.1
6/28/387.2 670.6 5,654.6
12/31/483.6 740.7 6,448.3
6/30/624.5 885.2 7,672.8
12/30/814.1 970.4 7,903.0
3/11/834.7 1,068.5 8,675.8
--------------------------------------------------
As the Figures 40 and 41 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 - 56
================================================================================
FIGURE 43 - 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 average IPO pricing at 70.9%, 69.7%, 70.9%,
and 75.9% of book value for the first, second, third, and fourth quarters of
1997, respectively, and 78.5% 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 42 and 43 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. For the first two
months of 1998, the thrift market appreciation has leveled off as illustrated in
figure 42.
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 - 57
================================================================================
- -------------------------------------------------
ACQUISITION MARKET
- -------------------------------------------------
FIGURE 44 - DEALS FOR LAST TWELVE QUARTERS
[GRAPHIC OMITTED]
Source: SNL Securities
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 58
================================================================================
From 1994 through March 11, 1998, thrift deal prices remained high. Nationally
and regionally, book multiples and earnings multiples are up in 1998. However,
for deals less than $10 million, earnings, assets, and deposit multiples are
down, while book multiples are up.
FIGURE 45 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO BOOK
[GRAPHIC OMITTED]
FIGURE 46 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO TANGIBLE BOOK
[GRAPHIC OMITTED]
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 59
================================================================================
FIGURE 47 - THRIFT ACQUISITION MULTIPLES, PRICE TO EARNINGS
[GRAPHIC OMITTED]
FIGURE 48 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO ASSETS
[GRAPHIC OMITTED]
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 60
================================================================================
FIGURE 49 - CURRENT THRIFT ACQUISITION MULTIPLES, PRICE TO DEPOSITS
[GRAPHIC OMITTED]
FIGURE 50 - 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 26.1
Thrifts - Mid-Atlantic 17.9 17.0 21.7 26.1
Thrifts - Deal Value Less than $10 Million 23.9 18.9 37.0 26.6
Average Price to Book
Thrifts - Nationwide 144.7 149.5 185.7 207.3
Thrifts - Mid-Atlantic 156.5 156.9 212.2 190.1
Thrifts - Deal Value Less than $10 Million 134.5 145.6 143.3 169.1
Average Price to Tangible Book
Thrifts - Nationwide 150.0 153.6 192.4 211.4
Thrifts - Mid-Atlantic 157.6 159.4 228.1 190.6
Thrifts - Deal Value Less than $10 Million 135.0 145.6 144.8 170.0
Average Price to Assets
Thrifts - Nationwide 14.8 15.0 18.4 19.5
Thrifts - Mid-Atlantic 15.3 17.7 16.5 21.1
Thrifts - Deal Value Less than $10 Million 12.1 14.0 15.5 12.3
Average Price to Deposits
Thrifts - Nationwide 19.2 19.9 25.0 26.1
Thrifts - Mid-Atlantic 20.3 24.5 26.1 27.9
Thrifts - Deal Value Less than $10 Million 15.3 16.7 19.0 16.7
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 61
================================================================================
Currently, there is one thrift acquisition pending in Pennsylvania. Sovereign
Bancorp is in the process of acquiring ML Bancorp. The deal price for this
acquisition equates to a price to earnings of 21.7x and a price to book of 200%.
The acquisition multiples associated with all deals are shown below.
FIGURE 51 - ACQUISITION TABLE
At Announcement Offer Divided By
--------------------------------
Book Value LTM EPS
---------- -------
Pending Merger Median 201% 26.1x
Completed Merger Median 195% 19.9x
Source: SNL Securities
No adjustment is warranted for this factor, as the Bank will not be readily
available for acquisition immediately following the conversion.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 62
================================================================================
- ------------------------------------------------
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 Downward
Asset Quality No Adjustment
Earnings Quality, Predictability and Growth Downward
Market Area No Adjustment
Management No Adjustment
Dividends No Adjustment
Liquidity of the Issue Downward
Subscription Interest Upward
Recent Regulatory Matters Downward
Market for Seasoned Thrift Stocks Downward
Acquisition Market No Adjustment
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 - 63
================================================================================
- -------------------------------------------------
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 19.9x, for all public thrifts the trading P/LTM EPS is 20.4x and for
recent standard conversions is 16.8x.
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.
Less weight was ascribed to all public thrifts and all Pennsylvania thrifts. The
multiples for the Comparable Group, all publicly traded thrifts, and
Pennsylvania publicly traded thrifts are shown in Exhibit 8.
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 64
================================================================================
Based upon the premiums and discounts defined in the section above, the Bank
pricing at the midpoint is estimated to be $1,800,000. Based upon a range below
and above the midpoint value, the relative values are $1,530,000 at the minimum
and $2,070,000 at the maximum respectively. At the supermaximum of the range the
offering value would be $2,380,500.
At the various levels of the estimated value range, the offering would result in
the following offering data:
FIGURE 52 - VALUE RANGE OFFERING DATA
<TABLE>
<CAPTION>
Pre Foundation
------------------------------------------------------------------------
Appraised Value
------------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum *
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Shares 153,000 180,000 207,000 238,050
Price per Share $ 10 $ 10 $ 10 $ 10
Full Conversion Value $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
Exchange Shares 0 0 0 0
Exchange Percent 0.00% 0.00% 0.00% 0.00%
Conversion Shares 153,000 180,000 207,000 238,050
Conversion Percent 100.00% 100.00% 100.00% 100.00%
Gross Proceeds $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
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.
Source: FinPro Inc. Proforma Model
FIGURE 53 - 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 12.50
Price-Earnings Ratio P/E Mid 13.51 29.05 27.01 23.34 19.72 24.16 20.34
- ------------------------- Max 14.93
Smax 16.39
Min 67.80%
Price-to-Book Ratio P/B Mid 72.15% 114.69% 108.45% 209.32% 185.91% 177.61% 158.38%
- ----------------------- Max 75.82%
Smax 79.24%
Min 67.80%
Price-to-Tangible Book Ratio P/TB Mid 72.15% 115.42% 110.33% 223.97% 191.01% 185.09% 162.52%
- --------------------------------- Max 75.82%
Smax 79.24%
Min 8.59%
Price-to-Assets Ratio P/A Mido 9.97% 27.53% 23.68% 19.99% 18.39% 20.86% 18.72%
- ------------------------- Max 11.32%
Smax 12.83%
</TABLE>
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 65
================================================================================
This equates to the following multiples:
FIGURE 54 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PROFORMA MIDPOINT
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
Price Relative to
-------------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at midpoint) (71.43) 13.51 72.15% 72.15% 9.97%
- -----------------------------------------------------------------------------------------------------------------
Comparable Group Median 27.01 28.94 108.45% 110.33% 23.68%
- -----------------------------------------------------------------------------------------------------------------
(Discount) Premium -364.46% -53.32% -33.47% -34.61% -57.90%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
FIGURE 55 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PROFORMA SUPERMAXIMUM
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
Price Relative to
-----------------------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at the supermax) (200.00) 16.39 79.24% 79.24% 12.83%
- -----------------------------------------------------------------------------------------------------------------------------
Comparable Group Median 27.01 28.94 108.45% 110.33% 23.68%
- -----------------------------------------------------------------------------------------------------------------------------
(Discount) Premium -840.47% -43.37% -26.93% -28.18% -45.82%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
As figure 54 demonstrates, the Bank is priced at a discount of 53.32% on a core
earnings basis. A discount of 34.61% is applied to the Bank relative to the
Comparable Group on a price to tangible 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 55 shows the Bank (at the supermaximum) is
priced at a 43.37% discount on a core earnings basis and at a 28.18% discount on
a tangible book basis.
The Bank (at the supermaximum of the EVR) is priced at a 1.16% discount on a
tangible book basis when compared to recent standard conversions.
FIGURE 56 - RECENT STANDARD CONVERSIONS TRADING MULTIPLES TO THE BANK'S
PROFORMA MIDPOINT
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
Price Relative to
------------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at midpoint) (71.43) 13.51 72.15% 72.15% 9.97%
- -----------------------------------------------------------------------------------------------------------------
Recent Standard Conversions 16.80 NA 73.00% 73.00% 18.70%
- -----------------------------------------------------------------------------------------------------------------
(Discount) Premium -525.18% NA -1.16% -1.16% -46.68%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 66
================================================================================
As the core earnings for recent standard conversion is not available, it is not
possible to compare the earnings multiple for the midpoint or supermax, however,
Carnegie's core earnings multiple at the supermax, when compared to the recent
standard conversion earnings multiple represents a discount of 2.44%
((16.80-16.39)/16.80) and is offset by the premium, at the supermax, of 8.55% on
a book basis.
FIGURE 57 - RECENT STANDARD CONVERSION TRADING MULTIPLES TO THE BANK'S
PROFORMA SUPERMAXIMUM
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Price Relative to
-------------------------------------------------------------------------------------------------------
Earnings Core Earnings Book Tangible Book Assets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Bank (at the supermax) (200.00) 16.39 79.24% 79.24% 12.83%
- ----------------------------------------------------------------------------------------------------------------------------------
Recent Standard Conversions 16.80 NA 73.00% 73.00% 18.70%
- ----------------------------------------------------------------------------------------------------------------------------------
(Discount) Premium -1290.48% NA 8.55% 8.55% -31.39%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: FinPro Calculations
<PAGE>
Conversion Valuation Appraisal Report Page: 1 - 67
================================================================================
- -------------------------------------------------
VALUATION CONCLUSION
- -------------------------------------------------
It is, therefore, our opinion that as of March 16, 1998, the estimated pro-forma
market value of the Bank in a full offering was $1,800,000 at the midpoint of a
range with a minimum of $1,530,000 to a maximum of $2,070,000 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 $2,380,500. 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, Pennsylvania public thrifts and the recent standard conversion
group is shown in Exhibit 10.
<PAGE>
Exhibit 1
FinPro
- --------------------------------------------
About the Firm
- --------------------------------------------
FinPro, Inc. was established in 1988 as a full service management consulting
firm specializing in providing advisory services to the Financial Institutions
Industry. FinPro provides management advisory services for Banks, Thrifts,
Finance Companies and NonBank Banks. Additionally, FinPro has performed work for
the Federal Bankruptcy Court, Federal Deposit Insurance Corporation, Office of
Thrift Supervision and the Resolution Trust Corporation. FinPro is recognized as
an expert in banking and in loan analysis by the Federal Bankruptcy Court.
FinPro is independently owned, not associated or affiliated with any transaction
oriented firm. This provides FinPro with an unbiased platform from which to make
analytical recommendations. FinPro believes that a client deserves to be told
all of the alternatives, along with their associated benefits and downsides and
that a decision should be made on its merits. This uniquely positions FinPro as
an objective third party willing to suggest the unpopular strategies, unlike its
competitors who rely on a transaction to get paid.
FinPro is headquartered in Liberty Corner, New Jersey and has a branch office in
Buffalo, New York. FinPro focuses geographically on the Mid-Atlantic region, but
has performed work in all other regions across the nation.
FinPro principals are frequent speakers and presenters at financial institution
trade association functions. In addition, FinPro designed the Statistical Report
Analysis currently produced quarterly by the New Jersey Savings League for its
members. FinPro also hosts a tri-annual President's Breakfast for Presidents of
New Jersey Community Banks.
FinPro maintains a library of databases encompassing bank and thrift capital
markets data, census data, branch deposit data, national peer data, market
research data along with many other related topics. As such, FinPro can provide
quick, current and precise analytical assessments based on timely data. In
addition, FinPro's geographic mapping capabilities give it a unique capability
to thematically illustrate multiple issues and to provide targeted marketing
opportunities to its clients.
<PAGE>
FinPro, Inc.
About the Firm Page: 2
- --------------------------------------------------------------------------------
FinPro has also designed and built PC-based software programs to utilize as
tools in its work. Examples include:
o A proprietary software program (LaRS (R)) to perform loan review
analytics.
o A duration based asset/liability model.
o A five year strategic planning, three year business planning, and one
year budgetary model that completely simulates an entire institution.
o A branch and product profitability model.
o A market performance grid and branch improvement grid model.
Using systems such as these, FinPro provides state-of-the-art end products in
all of its product and service areas.
<PAGE>
FinPro, Inc.
About the Firm Page: 3
- --------------------------------------------------------------------------------
- --------------------------------------------
Key Player Biographies
- --------------------------------------------
Donald J. Musso - Managing Director and President
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 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.
Mr. Musso has provided expert testimony on financial
institutions matters for 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.
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.
<PAGE>
FinPro, Inc.
About the Firm Page: 4
- --------------------------------------------------------------------------------
Steven P. Musso - Managing Director
Steve joined FinPro in 1989 and is one of the founding members
of the firm. He has extensive experience in performing a wide
array of market feasibility studies, branch profitability
analysis, CRA analysis, loan reviews and work-outs and
strategic planning engagements.
Steve manages the FinPro office in Western New York.
Additionally, he is responsible for managing many strategic
planning, loan reviews, market feasibility and CRA
engagements.
Steve is responsible for the development of FinPro's CRA,
market feasibility and Loan Review products.
Steve is currently a licensed real estate agent in New Jersey.
Prior to joining FinPro he practiced real estate in
Philadelphia, Pennsylvania.
Mr. Musso has a B.S. in Finance from Syracuse University.
<PAGE>
FinPro, Inc.
About the Firm Page: 5
- --------------------------------------------------------------------------------
Kenneth G. Emerson, CPA - Director
Ken joined FinPro in October 1996 and has concentrated on bank
valuations, strategic plans, and branch profitability. His
twelve years of experience at banks and brokerage firms, 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. While at those institutions his responsibilities
included asset/liability, cash, back office, operations,
objective, and LAN management, in addition to regulatory
reporting (FRB, FDIC, OTS, State of New Jersey Department of
Banking, and NASD), SEC reporting, shareholder reporting,
budgeting, acquisitions, sales, conversions, interfaces, and
FASB implementation.
Mr. Emerson has a B.A. in Accounting from Franklin & Marshall
College.
<PAGE>
FinPro, Inc.
About the Firm Page: 6
- --------------------------------------------------------------------------------
Dennis E. Gibney - Senior Financial Analyst
Dennis has been concentrating on the firm's asset/liability
products. Market feasibility, competitive analysis, branch
profitability and branch sales/acquisitions are other areas of
specialization.
Dennis joined the firm in June of 1996. He received a B.S.
from Babson College with a triple-major in Finance,
Investments and Economics. Prior to joining the firm, Dennis
received broad based experience in the securities industry.
Dennis worked for Merrill Lynch & Co. 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.
<PAGE>
Exhibit 2
Consolidated Statements of Financial Condition
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets Year Ended December 31,
------ ----------------------------------------------
1997 1996
----------------------- --------------------
<S> <C> <C>
Assets:
Cash and cash equivalents $ 850,891 $ 556,658
Certicates of deposits with other banks 100,000 100,000
Investment securites availbale for sale, net 1,434,698 687,312
Investment securites held to maturity, net (market
value of $1,425,656 and $1,453,244) 1,416,894 1,462,353
Mortgage-backed securities available for sale, net 584,865 -
Mortgage-backed securities held to maturity, net
(market value of $1,744,014 and $2,030,225) 1,721,250 2,013,551
Loans receivable (net of allowance for loan losses of $114,832 and $39,144) 9,585,360 9,811,840
Accured interest receivable 107,361 101,244
Property and equipment, net 184,878 188,910
Real estate owned 480,326 166,570
Deferred tax asset 92,700 -
Other assets 164,245 11,831
------------ ------------
Total Assets $ 16,723,468 $ 15,100,269
============= ============
Liabilities and retained earnings
---------------------------------
Deposits $ 15,177,917 $ 13,377,825
Line of credit - 300,000
Advance payments by borrowers for taxes and insurance 143,129 158,770
Deffered income taxes 33,698 13,400
Accured income taxes payable 6,316 20,600
Other liabilites 192,363 34,000
------------ ------------
Total liabilities 15,553,423 13,904,595
Unrealized gains (losses) on securities available-for-sale, net of tax 13,658 (14,514)
Retained earnings 1,156,387 1,210,188
------------- ------------
Total retained earnings 1,170,045 1,195,674
------------- ------------
Total liabilities and retained earnings $ 16,723,468 $ 15,100,269
============= ============
</TABLE>
- --------------------------------------------------------------------------------
Source: Audited Financial Statements
<PAGE>
Exhibit 3
Consolidated Statements of Income
$ in 000's
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
1997 1996
-------------------------------------
<S> <C> <C>
Interest income:
Interest on Loans $ 859,072 $ 843,488
Interest-bearing deposits with other banks 27,478 27,626
Interest on investments:
Taxable 105,860 66,467
Nontaxable 31,393 33,527
Mortgage-backed securities 198,454 102,655
----------- -----------
Total interest income 1,222,257 1,073,763
Interest expense:
Interest on certificates of deposit 570,883 440,380
Interest on other savings deposit 99,797 105,828
Interest on borrowings 567 5,505
----------- -----------
Total interest expense 671,247 551,713
----------- -----------
Net interest income 551,010 522,050
Provision for loan losses 73,000 2,203
----------- -----------
----------- -----------
Net interest income after provision for loan losses 478,010 519,847
Noninterest income (loss):
Service charges and fee income 54,204 41,199
Gain on sale of REO 13,693 -
Gain on sale of securities 1,677 7,733
Dividend income 63 9,379
Net income (loss) - real estate owned (7,515) 13,597
Other income 369 2,067
----------- -----------
Total other income 62,491 73,975
Noninterest expenses:
Wages, payroll taxes and employee benefits 442,353 249,065
General and administrative 122,783 140,535
Data processing charges 62,534 48,533
Depreciation and amortization 21,057 20,870
---------- ----------
Total other expenses 648,727 459,003
---------- ----------
Income (loss) before income taxes
Income tax expense (benefit) (108,226) 134,819
Net income (loss) (54,425) 35,400
----------- ----------
$ (53,801) $ 99,419
=========== ==========
</TABLE>
Source: Audited Financial Statements
- --------------------------------------------------------------------------------
<PAGE>
Exhibit 4
Carnegie Savings Bank
FDIC Certificate #: 27814
Call Report Schedule RI and Audited Income Statement Reconciliation
For the Twelve Months Ended December 31, 1997
(Dollars in thousands)
<TABLE>
<CAPTION>
Financial
Statement
Description RI Description Income
- ----------- -- ----------- ------
<S> <C> <C> <C> <C>
Twelve Months Ended 12/31/97 $ 29 Twelve Months Ended 12/31/97 $ (54)
Income taxes 53
Accrued pension expense (118)
Other accrued expenses (9)
Computer conversion costs (6)
Other audit adjustments, net (3)
------- ---------
Net loss $ (54) $ (54)
======= =========
</TABLE>
<PAGE>
Exhibit 5
Consolidated Statements of Changes in Net Worth
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Unrealized
gain/(loss) on
Retained Securities
Earnings AFS, net Total
-------- -------- -----
<S> <C> <C> <C>
Balance, at December 31, 1995 $1,110,769 $ (1,805) $ 1,108,964
Net income 99,419 - 99,419
-
Change in unrealized gain/(losses) - (12,709) (12,709)
--------- -------- -----------
AFS investment securities
Balance, at December 31, 1996 $1,210,188 (14,514) 1,195,674
Net loss (53,801) - (53,801)
Change in unrealized gain/(losses
AFS investment securities - 28,172 28,172
--------- -------- -----------
Balance, at December 31, 1997 1,156,387 13,658 1,170,045
========== ======== ===========
</TABLE>
Source: Audited Financial Statements
- --------------------------------------------------------------------------------
<PAGE>
Exhibit 6
Consolidated Statements of Cash Flows
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Years Ended
December 31,
--------------------------------
1997 1996
--------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (53,801) $ 99,419
Adjustments to reconcile net income (loss) to net cash provided (used) by operations
Depreciation and amortization 21,057 20,870
Provision for loan losses 73,000 2,203
Deferred income taxes (72,402) (900)
Net amortization of premiums/discounts (10,811) 1,470
Gain on sale of real estate owned (13,693) -
(Gain) loss on sale of securities (1,677) (7,733)
Increase (decrease) in cash due to changes in assets and liabilities:
Accrued interest receivable (6,117) (13,402)
Other assets (152,414) 52,413
Income tax liabilities (14,284) 20,600
Other liabilities 158,363 (219)
----------- -----------
Net cash provided (used) by operations (72,779) 174,721
Cash flows from investing activities: Investment securiites available for sale:
Proceeds from sales and maturities 646,313 500,363
Purchases (1,071,695) (691,436)
Investment securities held to maturity:
Proceeds from sales and maturities 551,750 20,000
Purchases (506,291) (298,639)
Mortgage-backed securities available for sale:
Purchases (1,053,921) -
Maturities and repayments 167,304 -
Mortgage-backed securities held to maturity:
Purchases - (1,247,113)
Maturities and repayments 291,936 213,570
Net (increase) decrease in loans receivable 344,516 (810,198)
Proceeds from sale of real estate owned 10,000 -
Investment in real estate owned (480,326) -
Purchase of equipment (17,025) (6,781)
-----------
Net cash provided (used) by investing activities (1,117,439) (2,320,234)
Cash flow from financing activities:
Advances from borrowers for taxes and insurance (15,641) (10,939)
Net increase in deposits 1,800,092 970,638
Net increase (decrease) in line of credit (300,000) 300,000
----------- -----------
Net cash provided by financing activities 1,484,451 1,259,699
----------- -----------
Net increase (decrease) in cash 294,233 (885,814)
Cash, beginning of year 656,658 1,542,472
----------- -----------
Cash and cash equivalents, end of year $ 950,891 $ 656,658
=========== ===========
</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 227 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
AADV Advantage Bancorp Inc. NASDAQ Kenosha WI 15 03/23/92 SAIF Regular
ABBK Abington Bancorp Inc. NASDAQ Abington MA 8 06/10/86 BIF Regular
ABCL Alliance Bancorp Inc. 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 12 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 109 04/01/92 SAIF Regular
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 LauderdalFL 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 18 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.
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 3 01/09/96 SAIF Regular
CAFI Camco Financial Corp. NASDAQ Cambridge OH 13 NA SAIF Not Avail.
CAPS Capital Savings Bancorp Inc. NASDAQ Jefferson CityMO 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 4 04/18/96 BIF Regular
CBCI Calumet Bancorp Inc. NASDAQ Dolton IL 5 02/20/92 SAIF Regular
CBES CBES Bancorp Inc. NASDAQ Excelsior SpriMOs 2 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.
CBSB Charter Financial Inc. NASDAQ Sparta IL 8 12/29/95 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
CENF CENFED Financial Corp. NASDAQ Pasadena CA 18 10/25/91 SAIF Regular
CFB Commercial Federal Corp. NYSE Omaha NE 164 12/31/84 SAIF Regular
CFBC Community First Banking Co. NASDAQ Carrollton GA 12 07/01/97 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
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
CFX CFX Corp. AMSE Keene NH 43 02/12/87 BIF 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 56 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 30,876,530 124.06 66.94 53.96 34.85
%CCMD Chevy Chase Bank, FSB 6,160,256 54.64 44.30 81.08 7.74
AABC Access Anytime Bancorp Inc. 105,639 57.86 52.34 90.46 0.00
AADV Advantage Bancorp Inc. 1,026,526 84.25 54.23 64.37 24.24
ABBK Abington Bancorp Inc. 531,986 102.50 62.61 61.08 31.19
ABCL Alliance Bancorp Inc. 1,363,825 94.20 70.63 74.98 13.48
ABCW Anchor BanCorp Wisconsin 1,941,180 114.99 80.31 69.84 22.66
AFBC Advance Financial Bancorp 108,032 116.56 87.64 75.19 9.01
AFCB Affiliated Community Bancorp 1,155,048 98.16 61.96 63.12 26.37
AFED AFSALA Bancorp Inc. 160,408 56.77 48.16 84.84 1.13
AHCI Ambanc Holding Co. 529,309 84.84 53.00 62.47 19.64
AHM H.F. Ahmanson & Co. 46,678,752 95.64 66.11 69.13 23.20
ALBC Albion Banc Corp. 70,810 92.67 71.80 77.48 13.07
ALBK ALBANK Financial Corp. 4,083,097 81.98 69.95 85.32 2.18
AMFC AMB Financial Corp. 100,003 107.96 77.50 71.78 12.00
ANA Acadiana Bancshares Inc. 274,018 110.19 76.00 68.97 13.37
ANDB Andover Bancorp Inc. 1,322,745 103.95 74.42 71.59 19.56
ANE Alliance Bncp of New England 247,129 71.01 63.71 89.72 2.32
ASBI Ameriana Bancorp 393,028 92.69 75.86 81.84 4.87
ASBP ASB Financial Corp. 113,176 86.07 69.06 80.24 2.89
ASFC Astoria Financial Corp. 10,528,393 69.85 41.27 59.09 31.09
ATSB AmTrust Capital Corp. 69,106 104.82 70.11 66.89 21.51
AVND Avondale Financial Corp. 542,196 62.01 45.42 73.24 16.75
BANC BankAtlantic Bancorp Inc. 3,064,480 119.14 68.57 57.55 30.54
BDJI First Federal Bancorp. 118,838 66.11 46.94 71.00 16.38
BFD BostonFed Bancorp Inc. 974,680 130.38 82.91 63.59 27.05
BFFC Big Foot Financial Corp. 216,260 81.93 46.51 56.77 23.44
BFSB Bedford Bancshares Inc. 136,908 114.52 86.48 75.52 9.50
BKC American Bank of Connecticut 639,013 80.06 57.59 71.94 18.21
BKCT Bancorp Connecticut Inc. 443,025 82.63 58.85 71.23 17.15
BKUNA BankUnited Financial Corp. 3,028,776 185.30 88.35 47.68 42.64
BNKU Bank United Corp. 12,523,459 183.49 77.50 42.24 47.39
BPLS Bank Plus Corp. 4,167,806 99.39 68.96 69.38 25.47
BTHL Bethel Bancorp 218,187 114.79 77.14 67.20 22.23
BVCC Bay View Capital Corp. 3,246,476 143.79 74.28 51.66 41.77
BWFC Bank West Financial Corp. 169,577 108.61 70.16 64.60 21.23
BYFC Broadway Financial Corp. 124,740 97.58 83.95 86.04 2.00
CAFI Camco Financial Corp. 520,582 117.16 86.02 73.42 15.43
CAPS Capital Savings Bancorp Inc. 242,208 115.76 81.36 70.29 18.99
CASB Cascade Financial Corp. 422,530 121.02 85.95 71.02 19.41
CASH First Midwest Financial Inc. 407,592 98.43 62.63 63.63 24.57
CATB Catskill Financial Corp. 294,656 62.82 43.10 68.60 5.63
CBCI Calumet Bancorp Inc. 486,626 109.93 78.72 71.61 9.26
CBES CBES Bancorp Inc. 111,127 125.13 90.19 72.08 11.02
CBK Citizens First Financial Corp. 273,600 117.15 85.05 72.60 12.41
CBSA Coastal Bancorp Inc. 2,911,410 92.28 43.58 47.23 47.48
CBSB Charter Financial Inc. 382,384 105.00 74.67 71.12 12.62
CCFH CCF Holding Co. 109,342 103.98 82.17 79.03 9.15
CEBK Central Co-operative Bank 367,096 95.87 72.38 75.50 13.88
CENB Century Bancorp Inc. 102,281 94.08 65.07 69.17 0.00
CENF CENFED Financial Corp. 2,304,678 101.07 69.17 68.44 25.10
CFB Commercial Federal Corp. 7,189,342 126.04 74.49 59.10 32.53
CFBC Community First Banking Co. 394,570 94.04 75.08 79.84 1.72
CFCP Coastal Financial Corp. 563,866 123.17 75.09 60.96 31.88
CFFC Community Financial Corp. 182,879 121.72 88.50 72.70 12.58
CFNC Carolina Fincorp Inc. 114,660 94.83 72.01 75.94 0.00
CFSB CFSB Bancorp Inc. 852,888 135.05 89.05 65.94 24.94
CFTP Community Federal Bancorp 228,656 99.79 58.44 58.56 12.11
CFX CFX Corp. 2,873,767 106.72 72.12 67.58 22.70
CIBI Community Investors Bancorp 95,876 108.71 85.32 78.48 9.30
CKFB CKF Bancorp Inc. 62,865 129.52 89.11 68.80 8.29
CLAS Classic Bancshares Inc. 132,793 90.15 67.70 75.09 8.71
CMRN Cameron Financial Corp 211,253 137.78 85.48 62.04 15.27
CMSB Commonwealth Bancorp Inc. 2,268,595 84.12 57.58 68.45 20.24
</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 BeaFL 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 CityMO 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 220 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 86 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
EGFC Eagle Financial Corp. NASDAQ Bristol CT 30 02/03/87 SAIF Regular
EGLB Eagle BancGroup Inc. NASDAQ Bloomington IL 3 07/01/96 SAIF Regular
EMLD Emerald Financial Corp. NASDAQ Strongsville OH 14 NA SAIF Regular
EQSB Equitable Federal Savings Bank NASDAQ Wheaton MD 4 09/10/93 SAIF Supervisory
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 GroveMO 6 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
FCME First Coastal Corp. NASDAQ Westbrook ME 7 NA BIF Not Avail.
FDEF First Defiance Financial NASDAQ Defiance OH 10 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 14 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 34 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
FFFC FFVA Financial Corp. NASDAQ Lynchburg VA 12 10/12/94 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 BeacFL 21 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.
FFPB First Palm Beach Bancorp Inc. NASDAQ West Palm BeacFL 48 09/29/93 SAIF Regular
FFSL First Independence Corp. NASDAQ Independence KS 2 10/08/93 SAIF Regular
</TABLE>
<PAGE>
Page 2 of 40
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) 709,220 77.42 59.42 76.75 9.46
CNIT CENIT Bancorp Inc. 701,708 96.17 69.83 72.61 19.87
CNSB CNS Bancorp Inc. 97,411 93.03 69.68 74.91 0.00
CNY Carver Bancorp Inc. 415,767 92.08 59.60 64.73 26.37
COFI Charter One Financial 19,760,265 125.41 64.86 51.72 38.95
CONE Conestoga Bancorp, Inc. 494,348 28.70 23.21 80.86 2.02
COOP Cooperative Bankshares Inc. 369,121 99.61 77.91 78.21 13.61
CRSB Crusader Holding Corp. 134,538 100.44 82.59 82.23 11.25
CRZY Crazy Woman Creek Bancorp 60,774 95.07 47.73 50.20 25.42
CSBF CSB Financial Group Inc. 47,602 75.10 57.23 76.21 0.00
CTZN CitFed Bancorp Inc. 3,460,297 97.65 52.27 53.53 39.19
CVAL Chester Valley Bancorp Inc. 325,643 100.49 82.28 81.88 7.73
DCBI Delphos Citizens Bancorp Inc. 107,747 110.96 80.27 72.34 0.00
DIBK Dime Financial Corp. 958,503 45.77 39.02 85.25 6.05
DIME Dime Community Bancorp Inc. 1,488,074 82.72 57.11 69.03 16.14
DME Dime Bancorp Inc. 21,848,000 107.07 67.86 63.38 28.03
DNFC D & N Financial Corp. 1,815,315 125.72 72.25 57.46 34.13
DSL Downey Financial Corp. 5,835,825 109.84 91.66 83.45 8.29
EBI Equality Bancorp Inc. 229,280 95.28 48.48 50.87 37.07
EBSI Eagle Bancshares 934,458 112.54 72.80 64.69 24.69
EFBC Empire Federal Bancorp Inc. 110,540 65.37 40.30 61.65 0.64
EFBI Enterprise Federal Bancorp 301,261 133.30 65.06 48.80 39.83
EGFC Eagle Financial Corp. 2,157,171 82.75 52.56 63.52 26.12
EGLB Eagle BancGroup Inc. 171,134 93.83 72.07 76.81 10.52
EMLD Emerald Financial Corp. 603,965 90.41 77.94 86.21 4.66
EQSB Equitable Federal Savings Bank 321,687 89.38 69.16 77.38 16.79
ESBK Elmira Savings Bank (The) 228,268 84.47 76.74 90.85 1.97
ESX Essex Bancorp Inc. 191,886 108.86 85.65 78.67 12.39
ETFS East Texas Financial Services 120,093 66.47 50.40 75.82 6.26
FAB FIRSTFED AMERICA BANCORP INC. 1,159,508 127.15 77.37 60.85 25.75
FBBC First Bell Bancorp Inc. 675,684 117.18 85.86 73.27 13.32
FBCI Fidelity Bancorp Inc. 489,673 119.27 80.36 67.38 19.87
FBCV 1ST Bancorp 255,927 140.45 73.90 52.62 37.28
FBER 1st Bergen Bancorp 290,435 60.19 45.06 74.86 10.79
FBHC Fort Bend Holding Corp. 302,728 61.78 52.18 84.47 5.28
FBNW FirstBank Corp. 183,292 129.75 78.87 60.79 21.22
FBSI First Bancshares Inc. 161,527 114.78 85.85 74.79 10.56
FCB Falmouth Bancorp Inc. 97,564 82.96 61.57 74.21 1.09
FCBF FCB Financial Corp. 519,911 127.18 77.30 60.78 22.43
FCME First Coastal Corp. 148,571 91.39 71.56 78.30 11.76
FDEF First Defiance Financial 579,698 112.46 76.69 68.19 12.36
FED FirstFed Financial Corp. 4,160,115 166.17 77.63 46.72 46.67
FESX First Essex Bancorp Inc. 1,197,459 96.56 60.02 62.16 28.69
FFBA First Colorado Bancorp Inc. 1,555,274 98.93 75.18 76.00 8.16
FFBH First Federal Bancshares of AR 547,119 94.30 77.74 82.44 1.83
FFBI First Financial Bancorp Inc. 82,682 81.43 66.52 81.70 8.10
FFBS FFBS BanCorp Inc. 134,952 90.62 71.00 78.35 3.41
FFBZ First Federal Bancorp Inc. 208,840 143.60 87.14 60.68 30.83
FFCH First Financial Holdings Inc. 1,793,325 128.17 80.57 62.86 29.13
FFDB FirstFed Bancorp Inc. 178,792 75.88 68.05 89.68 0.00
FFDF FFD Financial Corp. 92,364 109.70 69.80 63.63 10.86
FFED Fidelity Federal Bancorp 215,821 109.76 82.24 74.93 16.79
FFES First Federal of East Hartford 982,747 33.78 19.80 58.60 34.12
FFFC FFVA Financial Corp. 579,694 79.53 57.04 71.72 14.15
FFFD North Central Bancshares Inc. 221,954 137.04 87.14 63.58 12.86
FFFL Fidelity Bankshares Inc. (MHC) 1,045,692 97.51 73.78 75.66 13.70
FFHH FSF Financial Corp. 402,850 129.52 68.38 52.79 35.68
FFHS First Franklin Corp. 230,504 76.05 66.71 87.72 2.37
FFIC Flushing Financial Corp. 1,088,476 92.51 55.57 60.07 26.38
FFKY First Federal Financial Corp. 388,329 119.10 89.05 74.77 10.68
FFLC FFLC Bancorp Inc. 400,237 100.52 79.21 78.80 7.50
FFOH Fidelity Financial of Ohio 535,100 101.50 81.95 80.74 6.40
FFPB First Palm Beach Bancorp Inc. 1,821,077 93.03 63.81 68.59 23.61
FFSL First Independence Corp. 113,669 107.81 72.19 66.97 22.31
</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>
FFSX First Fed SB of Siouxland(MHC) NASDAQ Sioux City IA 13 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 CiNY 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 4 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 HilMI 19 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 20 12/14/88 SAIF Regular
FMSB First Mutual Savings Bank NASDAQ Bellevue WA 8 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 Savings Bank (MHC) NASDAQ Woodbridge NJ 17 07/10/92 SAIF Mutual HC
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 7 07/09/97 SAIF Regular
FSSB First FS&LA of San Bernardino NASDAQ San BernardinoCA 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 50 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 20 11/01/95 SAIF Regular
GAF GA Financial Inc. AMSE Pittsburgh PA 13 03/26/96 SAIF Regular
GDVS Greater Delaware Valley (MHC) NASDAQ Broomall PA 7 03/03/95 SAIF Mutual HC
GDW Golden West Financial NYSE Oakland CA 250 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 Mutual HC
GFSB GFS Bancorp Inc. NASDAQ Grinnell IA 1 01/06/94 SAIF Regular
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 74 01/28/94 BIF Regular
GSB Golden State Bancorp Inc. NYSE Glendale CA 181 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 Bancorp (MHC) NASDAQ Fort Pierce FL 24 01/06/94 SAIF Mutual HC
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 40 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 4 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 BIF Not Avail.
HCBB HCB Bancshares Inc. NASDAQ Camden AR 7 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
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
</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>
FFSX First Fed SB of Siouxland(MHC) 458,940 104.57 74.86 71.59 18.30
FFWC FFW Corp. 191,298 111.18 67.41 60.63 27.54
FFWD Wood Bancorp Inc. 166,546 107.84 82.40 76.41 10.11
FFYF FFY Financial Corp. 614,749 102.57 75.73 73.83 11.39
FGHC First Georgia Holding Inc. 166,386 108.66 87.35 80.40 10.04
FIBC Financial Bancorp Inc. 308,248 72.91 51.95 71.25 18.42
FISB First Indiana Corp. 1,613,405 123.78 84.97 68.65 20.65
FKFS First Keystone Financial 378,527 85.84 52.24 60.86 26.62
FKKY Frankfort First Bancorp Inc. 132,809 149.57 93.58 62.57 19.44
FLAG FLAG Financial Corp. 238,463 92.76 69.10 74.49 14.27
FLFC First Liberty Financial Corp. 1,275,398 96.26 70.84 73.60 17.72
FLGS Flagstar Bancorp Inc. 2,033,260 178.76 88.94 49.75 35.36
FLKY First Lancaster Bancshares 49,880 193.98 89.75 46.27 23.83
FMBD First Mutual Bancorp Inc. 391,439 97.09 79.38 81.76 3.19
FMCO FMS Financial Corp. 581,660 64.86 53.29 82.17 10.31
FMSB First Mutual Savings Bank 445,762 97.95 81.92 83.64 7.68
FNGB First Northern Capital Corp. 667,696 124.29 89.69 72.16 15.47
FOBC Fed One Bancorp 366,776 64.74 45.70 70.59 17.75
FPRY First Financial Bancorp 240,379 88.86 77.63 87.36 5.41
FSBI Fidelity Bancorp Inc. 393,076 76.49 49.20 64.33 25.07
FSFF First SecurityFed Financial 267,332 81.39 67.52 82.95 4.49
FSLA First Savings Bank (MHC) 1,049,316 72.84 56.67 77.79 11.34
FSNJ Bayonne Bancshares Inc. 610,639 55.62 38.51 69.23 13.98
FSPG First Home Bancorp Inc. 525,092 87.30 53.80 61.63 31.09
FSPT FirstSpartan Financial Corp. 495,319 111.60 80.67 72.29 0.00
FSSB First FS&LA of San Bernardino 103,674 75.29 71.56 95.05 0.00
FSTC First Citizens Corp. 352,233 88.26 76.16 86.29 2.93
FTF Texarkana First Financial Corp 180,259 103.06 82.23 79.79 3.59
FTFC First Federal Capital Corp. 1,544,294 108.77 80.76 74.24 17.86
FTNB Fulton Bancorp Inc. 107,988 128.83 82.19 63.80 11.54
FTSB Fort Thomas Financial Corp. 99,873 127.88 91.66 71.68 11.31
FWWB First SB of Washington Bancorp 1,136,693 131.97 67.61 51.23 33.72
GAF GA Financial Inc. 783,948 66.61 39.27 58.95 25.29
GDVS Greater Delaware Valley (MHC) 260,464 73.75 59.12 80.17 8.16
GDW Golden West Financial 39,590,271 138.92 84.60 60.90 30.49
GFCO Glenway Financial Corp. 304,621 113.58 84.64 74.52 14.24
GFED Guaranty Federal Bcshs Inc. 230,616 122.15 76.06 62.27 6.56
GFSB GFS Bancorp Inc. 94,546 129.85 84.99 65.45 21.61
GLMR Gilmer Financial Svcs, Inc. 42,171 81.48 56.24 69.02 20.27
GOSB GSB Financial Corp. 115,884 84.26 59.22 70.28 0.00
GPT GreenPoint Financial Corp. 13,083,518 81.20 68.10 83.87 2.34
GSB Golden State Bancorp Inc. 16,029,116 124.59 74.18 59.54 32.08
GSBC Great Southern Bancorp Inc. 750,458 137.52 85.11 61.89 28.89
GSFC Green Street Financial Corp. 179,700 114.11 72.61 63.63 0.00
GSLA GS Financial Corp. 131,071 85.99 36.77 42.76 13.00
GTPS Great American Bancorp 141,976 100.29 79.11 78.88 0.00
GUPB GFSB Bancorp Inc. 114,745 100.38 55.33 55.12 31.43
HALL Hallmark Capital Corp. 413,511 109.74 69.83 63.63 27.95
HARB Harbor Florida Bancorp (MHC) 1,128,942 94.21 77.24 81.99 8.01
HARL Harleysville Savings Bank 347,882 90.17 71.95 79.79 12.35
HARS Harris Financial Inc. (MHC) 2,201,304 79.74 41.52 52.07 38.79
HAVN Haven Bancorp Inc. 1,974,890 84.31 58.27 69.12 22.37
HBBI Home Building Bancorp 42,430 90.16 68.17 75.61 9.43
HBEI Home Bancorp of Elgin Inc. 352,595 NA NA 70.40 1.42
HBFW Home Bancorp 350,038 97.67 84.49 86.51 0.00
HBNK Highland Bancorp Inc. 549,638 119.91 79.34 66.17 24.56
HBS Haywood Bancshares Inc. 152,796 97.44 75.44 77.42 6.87
HCBB HCB Bancshares Inc. 204,944 71.41 51.73 72.44 7.86
HCBC High Country Bancorp Inc. 87,130 123.05 80.10 65.10 13.15
HCFC Home City Financial Corp. 70,110 116.70 85.94 73.64 6.15
HEMT HF Bancorp Inc. 1,063,267 69.89 56.24 80.47 10.35
HFBC HopFed Bancorp Inc. 202,009 55.83 49.95 89.48 0.00
HFFB Harrodsburg First Fin Bancorp 108,908 106.30 76.37 71.85 0.00
HFFC HF Financial Corp. 580,668 99.65 76.30 76.57 11.31
</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>
HFGI Harrington Financial Group NASDAQ Richmond IN 5 NA SAIF Not Avail.
HFNC HFNC Financial Corp. NASDAQ Charlotte NC 10 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 Mutual HC
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
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 10 10/13/94 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
INCB Indiana Community Bank SB NASDAQ Lebanon IN 4 12/15/94 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 9 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 5 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
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 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 HillIL 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
MBB MSB Bancorp Inc. AMSE Goshen NY 16 09/03/92 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
MERI Meritrust Federal SB NASDAQ Thibodaux LA 8 NA SAIF Not Avail.
METF Metropolitan Financial Corp. NASDAQ Mayfield HeighOH 15 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 27 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
MONT Montgomery Financial Corp. NASDAQ CrawfordsvilleIN 4 07/01/97 SAIF Not Avail.
MRKF Market Financial Corp. NASDAQ Mount Healthy OH 2 03/27/97 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>
HFGI Harrington Financial Group 544,677 80.26 20.27 25.25 69.47
HFNC HFNC Financial Corp. 910,786 168.46 80.99 48.08 32.59
HFSA Hardin Bancorp Inc. 115,434 78.57 52.17 66.39 21.22
HFWA Heritage Financial Corp. 328,601 96.25 65.58 68.13 0.00
HHFC Harvest Home Financial Corp. 93,141 73.76 47.74 64.72 23.43
HIFS Hingham Instit. for Savings 222,584 108.66 78.35 72.11 17.28
HMLK Hemlock Federal Financial Corp 176,683 58.75 43.54 74.12 6.23
HMNF HMN Financial Inc. 691,232 95.67 64.68 67.61 18.47
HOMF Home Federal Bancorp 709,412 110.08 83.51 75.87 14.60
HPBC Home Port Bancorp Inc. 208,815 124.63 85.01 68.21 19.99
HRBF Harbor Federal Bancorp Inc. 233,572 84.08 63.59 75.64 10.74
HRZB Horizon Financial Corp. 532,767 97.75 80.46 82.32 0.00
HTHR Hawthorne Financial Corp. 928,197 106.51 91.74 86.13 8.62
HWEN Home Financial Bancorp 43,504 134.87 80.32 59.55 22.99
HZFS Horizon Financial Svcs Corp. 88,769 99.02 63.43 64.05 24.86
IBSF IBS Financial Corp. 728,181 38.98 29.98 76.91 4.54
IFSB Independence Federal Svgs Bank 251,561 75.18 60.02 79.84 12.00
INBI Industrial Bancorp Inc. 364,023 119.36 88.84 74.43 7.97
INCB Indiana Community Bank SB 95,378 85.55 74.47 87.05 0.00
IPSW Ipswich Savings Bank 227,244 101.31 76.34 75.36 17.76
ITLA ITLA Capital Corp. 1,015,909 96.42 80.08 83.06 6.05
IWBK InterWest Bancorp Inc. 1,982,317 100.38 58.48 58.26 34.43
JOAC Joachim Bancorp Inc. 34,229 105.57 74.11 70.20 0.00
JSB JSB Financial Inc. 1,531,068 83.22 61.03 73.33 0.00
JSBA Jefferson Savings Bancorp 1,257,753 89.04 75.72 85.04 4.08
JXSB Jacksonville Savings Bk (MHC) 168,036 88.88 77.83 87.56 0.13
JXVL Jacksonville Bancorp Inc. 235,405 89.87 74.84 83.27 0.88
KFBI Klamath First Bancorp 975,207 84.67 58.93 69.61 14.46
KNK Kankakee Bancorp Inc. 343,409 86.13 70.23 81.54 6.84
KSAV KS Bancorp Inc. 113,978 105.55 83.64 79.24 7.02
KSBK KSB Bancorp Inc. 152,752 108.57 78.69 72.48 18.47
KYF Kentucky First Bancorp Inc. 86,307 91.21 57.96 63.55 18.50
LARK Landmark Bancshares Inc. 233,640 114.98 71.83 62.48 22.04
LARL Laurel Capital Group Inc. 213,379 85.85 69.99 81.53 6.11
LFBI Little Falls Bancorp Inc. 324,425 64.60 45.05 69.74 18.03
LFCO Life Financial Corp. 409,357 151.54 78.40 51.73 26.81
LFED Leeds Federal Bankshares (MHC) 291,408 77.29 62.93 81.41 0.21
LISB Long Island Bancorp Inc. 6,072,524 99.12 61.09 61.63 26.58
LOGN Logansport Financial Corp. 86,115 105.42 74.18 70.37 7.55
LONF London Financial Corp. 37,916 94.91 76.78 80.90 4.48
LSBI LSB Financial Corp. 206,584 130.74 87.14 66.65 24.29
LSBX Lawrence Savings Bank 359,855 64.65 45.71 70.71 17.62
LVSB Lakeview Financial 517,974 64.23 45.77 71.25 16.56
LXMO Lexington B&L Financial Corp. 92,450 85.27 68.38 80.19 0.87
MAFB MAF Bancorp Inc. 3,457,664 116.50 78.74 67.59 23.04
MARN Marion Capital Holdings 191,854 117.66 81.96 69.66 5.57
MASB MASSBANK Corp. 925,403 33.62 29.43 87.51 0.08
MBB MSB Bancorp Inc. 773,991 54.77 48.40 88.38 0.04
MBBC Monterey Bay Bancorp Inc. 408,096 82.96 65.16 78.55 9.18
MBLF MBLA Financial Corp. 223,558 119.87 58.40 48.72 37.91
MBSP Mitchell Bancorp Inc. 36,103 142.96 80.82 56.54 0.00
MCBN Mid-Coast Bancorp Inc. 62,632 106.45 79.24 74.43 16.27
MDBK Medford Bancorp Inc. 1,135,572 70.29 50.86 72.36 18.12
MECH MECH Financial Inc. 892,371 87.94 65.79 74.81 14.54
MERI Meritrust Federal SB 233,803 57.97 52.29 90.20 0.00
METF Metropolitan Financial Corp. 924,985 96.71 77.14 79.76 14.69
MFBC MFB Corp. 264,097 120.27 78.98 65.67 20.90
MFFC Milton Federal Financial Corp. 218,826 95.72 63.39 66.22 21.26
MFLR Mayflower Co-operative Bank 131,908 75.13 58.05 77.27 12.13
MFSL Maryland Federal Bancorp 1,184,294 120.86 84.08 69.57 20.43
MIFC Mid-Iowa Financial Corp. 135,345 83.54 53.05 63.50 25.86
MIVI Mississippi View Holding Co. 68,619 82.66 66.10 79.96 0.00
MONT Montgomery Financial Corp. 105,671 123.48 88.98 72.06 7.82
MRKF Market Financial Corp. 56,833 81.28 50.91 62.64 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>
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 13 10/10/86 BIF Regular
MWFD Midwest Federal Financial NASDAQ Baraboo WI 9 07/08/92 SAIF Regular
MYST Mystic Financial Inc. NASDAQ Medford MA 3 01/09/98 BIF Regular
NASB North American Savings Bank NASDAQ Grandview MO 7 09/27/85 SAIF Not Avail.
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
NHTB New Hampshire Thrift Bncshrs NASDAQ Newport NH 11 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 67 11/07/94 SAIF Mutual HC
NYB New York Bancorp Inc. NYSE Douglaston NY 36 01/28/88 SAIF Regular
OCFC Ocean Financial Corp. NASDAQ Toms River NJ 10 07/03/96 SAIF Regular
OCN Ocwen Financial Corp. NYSE West Palm BeacFL 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 9 11/14/89 SAIF Regular
PBCT People's Bank (MHC) NASDAQ Bridgeport CT 128 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 14 10/30/86 BIF Regular
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
PERT Perpetual Bank (MHC) NASDAQ Anderson SC 6 10/26/93 SAIF Mutual HC
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 23 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 10 07/18/83 SAIF Regular
PFSB PennFed Financial Services Inc NASDAQ West Orange NJ 18 07/15/94 SAIF Regular
PFSL Pocahontas FS&LA (MHC) NASDAQ Pocahontas AR 6 04/05/94 SAIF Mutual HC
PHBK Peoples Heritage Finl Group NASDAQ Portland ME 142 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
PKPS Poughkeepsie Financial Corp. NASDAQ Poughkeepsie NY 16 11/19/85 SAIF Regular
PLSK Pulaski Savings Bank (MHC) NASDAQ Springfield NJ 6 04/03/97 SAIF Mutual HC
PMFI Perpetual Midwest Financial NASDAQ Cedar Rapids IA 5 03/31/94 SAIF Regular
PRBC Prestige Bancorp Inc. NASDAQ Pleasant HillsPA 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 LiverpoolOH 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 HeightOH 9 12/30/92 SAIF Supervisory
PVSA Parkvale Financial Corp. NASDAQ Monroeville PA 29 07/16/87 SAIF Regular
PWBC PennFirst Bancorp Inc. NASDAQ Ellwood City PA 11 06/13/90 SAIF Regular
PWBK Pennwood Bancorp Inc. NASDAQ Pittsburgh PA 3 07/15/96 SAIF Regular
QCBC Quaker City Bancorp Inc. NASDAQ Whittier CA 8 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
</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>
MSBF MSB Financial Inc. 77,444 170.35 93.18 54.70 27.33
MSBK Mutual Savings Bank FSB 644,740 78.29 49.47 63.19 28.78
MWBI Midwest Bancshares Inc. 147,724 87.24 62.17 71.27 20.65
MWBX MetroWest Bank 608,941 91.58 75.56 82.51 9.10
MWFD Midwest Federal Financial 211,689 101.01 76.07 75.31 14.46
MYST Mystic Financial Inc. 198,417 72.13 62.99 87.32 5.80
NASB North American Savings Bank 734,091 121.46 86.66 71.34 19.35
NBN Northeast Bancorp 278,733 131.30 82.14 62.55 28.50
NBSI North Bancshares Inc. 122,978 105.58 64.43 61.03 23.66
NEIB Northeast Indiana Bancorp 190,319 175.42 89.38 50.95 34.15
NHTB New Hampshire Thrift Bncshrs 317,989 95.48 81.44 85.29 5.96
NMSB NewMil Bancorp Inc. 355,526 59.97 48.16 80.31 9.56
NSLB NS&L Bancorp Inc. 57,823 79.72 61.46 77.09 1.73
NSSY NSS Bancorp Inc. 670,749 104.06 66.01 63.43 27.12
NTBK Net.B@nk Inc. 81,104 74.74 42.42 56.76 0.00
NTMG Nutmeg Federal S&LA 105,151 111.58 88.08 78.94 9.99
NWEQ Northwest Equity Corp. 99,558 129.34 81.80 63.25 24.47
NWSB Northwest Bancorp Inc. (MHC) 2,248,816 86.53 73.31 84.73 5.06
NYB New York Bancorp Inc. 3,264,749 122.25 63.01 51.54 40.14
OCFC Ocean Financial Corp. 1,510,947 80.91 52.31 64.65 20.42
OCN Ocwen Financial Corp. 3,069,165 NA NA 64.60 14.78
OFCP Ottawa Financial Corp. 885,817 114.99 84.97 73.89 16.42
OHSL OHSL Financial Corp. 238,905 93.69 72.43 77.31 11.12
OSFS Ohio State Financial Services 38,559 89.49 63.95 71.46 0.00
OTFC Oregon Trail Financial Corp. 257,049 80.51 58.73 72.94 0.00
PBCI Pamrapo Bancorp Inc. 376,714 69.48 56.71 81.62 3.68
PBCT People's Bank (MHC) 8,184,000 94.10 66.90 71.09 19.01
PBHC Pathfinder Bancorp Inc. (MHC) 196,770 80.32 62.21 77.45 9.49
PBKB People's Bancshares Inc. 762,910 115.87 53.93 46.54 46.74
PCBC Perry County Financial Corp. 85,030 24.44 17.73 72.56 7.64
PDB Piedmont Bancorp Inc. 130,167 125.16 83.05 66.35 16.59
PEDE Great Pee Dee Bancorp 72,057 140.32 76.90 54.80 1.60
PEEK Peekskill Financial Corp. 184,215 36.07 26.40 73.20 0.00
PERM Permanent Bancorp Inc. 419,819 79.45 51.70 65.07 23.71
PERT Perpetual Bank (MHC) 292,059 94.75 65.71 69.36 18.49
PFDC Peoples Bancorp 294,291 99.60 82.42 82.75 1.41
PFED Park Bancorp Inc. 176,957 50.57 38.90 76.92 0.00
PFFB PFF Bancorp Inc. 2,765,855 110.18 67.98 61.70 27.41
PFFC Peoples Financial Corp. 82,464 91.04 72.37 79.49 0.00
PFNC Progress Financial Corp. 493,406 96.61 66.72 69.06 14.42
PFSB PennFed Financial Services Inc 1,475,509 102.90 67.74 65.83 24.25
PFSL Pocahontas FS&LA (MHC) 389,405 113.74 43.33 38.10 54.54
PHBK Peoples Heritage Finl Group 6,795,337 100.99 71.37 70.68 19.57
PHFC Pittsburgh Home Financial Corp 299,669 135.12 63.99 47.36 42.53
PHSB Peoples Home Savings Bk (MHC) 217,735 58.00 46.43 80.05 6.08
PKPS Poughkeepsie Financial Corp. 875,492 108.73 77.05 70.86 19.28
PLSK Pulaski Savings Bank (MHC) 181,732 67.30 56.75 84.31 3.10
PMFI Perpetual Midwest Financial 392,093 108.64 86.97 80.05 9.87
PRBC Prestige Bancorp Inc. 143,263 105.95 67.42 63.63 24.21
PROV Provident Financial Holdings 723,696 117.56 86.72 73.77 12.80
PSBK Progressive Bank Inc. 883,494 71.92 65.00 90.39 0.00
PSFC Peoples-Sidney Financial Corp. 106,239 117.64 88.16 74.94 0.00
PSFI PS Financial Inc. 85,698 86.24 41.58 48.21 9.92
PTRS Potters Financial Corp. 122,716 78.90 64.84 82.19 8.03
PULB Pulaski Bank, Svgs Bank (MHC) 180,485 95.57 80.53 84.26 1.22
PULS Pulse Bancorp 539,322 33.28 25.70 77.24 13.66
PVFC PVF Capital Corp. 396,214 116.54 92.95 79.76 10.49
PVSA Parkvale Financial Corp. 1,019,143 84.62 75.17 88.84 1.95
PWBC PennFirst Bancorp Inc. 910,770 NA NA 43.87 45.00
PWBK Pennwood Bancorp Inc. 47,211 84.23 64.71 76.82 3.07
QCBC Quaker City Bancorp Inc. 852,154 120.26 78.97 65.66 24.35
QCFB QCF Bancorp Inc. 152,668 63.75 43.30 67.92 11.89
QCSB Queens County Bancorp Inc. 1,603,269 131.36 87.60 66.69 19.31
RARB Raritan Bancorp Inc. 408,308 79.42 65.56 82.56 8.60
</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>
RCBK Richmond County Financial Corp NASDAQ Staten Island NY 13 02/18/98 SAIF Regular
REDF RedFed Bancorp Inc. NASDAQ Redlands CA 14 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
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 16 10/02/95 SAIF Regular
SFSB SuburbFed Financial Corp. NASDAQ Flossmoor IL 12 03/04/92 SAIF Regular
SFSL Security First Corp. NASDAQ Mayfield HeighOH 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 3 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 34 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 PinesNC 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 24 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 kouthwest 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 4 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. (MHC) NASDAQ Lawrenceville NJ 14 08/03/95 BIF Mutual HC
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 4 09/23/86 SAIF Regular
UCBC Union Community Bancorp NASDAQ CrawfordsvilleIN 1 12/29/97 SAIF Regular
UFRM United Federal Savings Bank NASDAQ Rocky Mount NC 13 07/01/80 SAIF Regular
USAB USABancshares, Inc. NASDAQ Philadelphia PA 1 NA BIF Not Avail.
UTBI United Tennessee Bankshares NASDAQ Newport TN 2 01/05/98 SAIF Regular
VABF Virginia Beach Fed. Financial NASDAQ Virginia BeachVA 14 11/01/80 SAIF Not Avail.
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 84 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 8 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 104 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>
RCBK Richmond County Financial Corp 1,096,040 59.86 49.82 83.23 6.36
REDF RedFed Bancorp Inc. 1,009,754 106.89 89.41 83.65 6.38
RELI Reliance Bancshares Inc. 44,544 156.23 61.99 39.68 8.98
RELY Reliance Bancorp Inc. 2,243,100 61.83 44.18 71.46 17.62
RIVR River Valley Bancorp 138,461 98.31 82.13 83.54 2.17
ROSE TR Financial Corp. 3,843,056 93.67 53.68 57.31 33.79
RSLN Roslyn Bancorp Inc. 3,601,079 51.16 27.59 53.94 26.84
RVSB Riverview Bancorp Inc. 263,045 95.96 62.52 65.15 11.23
SBFL SB of the Finger Lakes (MHC) 247,708 64.11 48.28 75.30 14.93
SBOS Boston Bancorp (The) 1,715,070 24.42 19.25 78.85 7.61
SCBS Southern Community Bancshares 70,893 82.38 65.68 79.73 0.00
SCCB S. Carolina Community Bancshrs 45,092 102.09 79.79 78.16 0.00
SFED SFS Bancorp Inc. 174,428 89.43 77.15 86.26 0.00
SFFC StateFed Financial Corp. 88,608 129.09 77.43 59.98 21.44
SFIN Statewide Financial Corp. 703,112 75.00 47.20 62.93 26.75
SFSB SuburbFed Financial Corp. 438,462 93.01 67.17 72.22 19.40
SFSL Security First Corp. 677,876 122.18 90.78 74.30 15.22
SGVB SGV Bancorp Inc. 407,821 107.32 77.78 72.47 18.94
SHEN First Shenango Bancorp Inc. 374,972 94.19 69.14 73.40 12.73
SHSB SHS Bancorp Inc. 88,460 89.35 65.63 73.46 12.05
SIB Staten Island Bancorp Inc. 2,651,170 67.66 41.44 61.24 9.43
SISB SIS Bancorp Inc. 1,733,618 67.19 49.12 73.10 17.30
SKAN Skaneateles Bancorp Inc. 256,101 99.34 83.96 84.52 7.05
SKBO First Carnegie Deposit (MHC) 143,650 80.92 43.54 53.81 27.58
SMBC Southern Missouri Bancorp Inc. 159,926 105.93 73.51 69.40 13.15
SOBI Sobieski Bancorp Inc. 87,553 119.91 78.90 65.80 19.25
SOPN First Savings Bancorp Inc. 300,816 95.76 66.82 69.78 6.65
SOSA Somerset Savings Bank 539,672 92.09 77.80 84.47 8.04
SPBC St. Paul Bancorp Inc. 4,557,336 99.16 71.46 72.07 17.31
SRN Southern Banc Co. 105,116 45.68 37.36 81.78 0.00
SSB Scotland Bancorp Inc. 61,473 98.05 72.79 74.24 0.00
SSFC South Street Financial Corp. 228,491 79.16 49.54 62.58 9.19
SSM Stone Street Bancorp Inc. 104,773 135.09 86.03 63.68 4.82
STFR St. Francis Capital Corp. 1,597,648 70.33 46.86 66.63 24.26
STSA Sterling Financial Corp. 1,876,250 104.57 57.76 55.24 35.57
SVRN Sovereign Bancorp Inc. 14,336,283 126.06 69.38 55.03 38.31
SWBI kouthwest Bancshares Inc. 368,282 95.87 73.68 76.86 9.19
SWCB Sandwich Bancorp Inc. 518,697 87.64 71.48 81.55 8.79
SZB SouthFirst Bancshares Inc. 165,388 77.55 61.16 78.86 10.73
THR Three Rivers Financial Corp. 97,487 102.81 64.69 62.93 22.30
THRD TF Financial Corp. 597,047 56.11 42.33 75.44 14.80
TPNZ Tappan Zee Financial Inc. 126,470 57.04 46.57 81.63 0.00
TRIC Tri-County Bancorp Inc. 89,999 90.20 45.50 50.45 33.00
TSBK Timberland Bancorp Inc. 293,278 74.42 64.47 86.63 4.16
TSBS Peoples Bancorp Inc. (MHC) 640,419 81.04 62.44 77.04 4.68
TSH Teche Holding Co. 408,591 125.67 85.57 68.09 17.60
TWIN Twin City Bancorp 108,687 84.28 71.59 84.94 0.92
UBMT United Financial Corp. 103,082 47.48 33.21 69.95 4.85
UCBC Union Community Bancorp 82,789 120.55 88.00 73.00 9.52
UFRM United Federal Savings Bank 304,159 96.81 84.64 87.42 3.29
USAB USABancshares, Inc. 64,269 73.78 53.03 71.88 18.99
UTBI United Tennessee Bankshares 64,860 83.00 73.05 88.02 0.00
VABF Virginia Beach Fed. Financial 605,486 120.74 77.29 64.01 28.11
WAMU Washington Mutual Inc. 96,981,099 133.00 69.92 52.57 39.39
WAYN Wayne Savings Bancshares (MHC) 255,124 96.59 81.25 84.12 5.49
WBST Webster Financial Corp. 7,019,621 89.74 55.81 62.19 28.89
WCBI Westco Bancorp Inc. 315,944 92.83 76.28 82.17 0.00
WCFB Webster City Federal SB (MHC) 95,121 76.48 57.51 75.20 0.25
WEFC Wells Financial Corp. 201,436 NA NA 72.17 12.16
WEHO Westwood Homestead Fin. Corp. 134,259 133.64 87.83 65.72 11.00
WES Westcorp 3,728,865 93.59 50.22 53.66 21.54
WFI Winton Financial Corp. 329,897 114.46 86.07 75.20 16.19
WFSL Washington Federal Inc. 5,713,308 145.30 74.04 50.96 33.90
WHGB WHG Bancshares Corp. 101,331 104.08 78.47 75.39 3.95
</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 16 11/26/86 BIF Regular
WSTR WesterFed Financial Corp. NASDAQ Missoula MT 36 01/10/94 SAIF Regular
WVFC WVS Financial Corp. NASDAQ Pittsburgh PA 5 11/29/93 SAIF Regular
WYNE Wayne Bancorp Inc. NASDAQ Wayne NJ 5 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
- -----------------------------------------------------------------------------------------------------------------
Average
</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. 397,425 126.01 76.82 60.96 24.66
WRNB Warren Bancorp Inc. 370,993 74.33 65.17 87.68 0.79
WSB Washington Savings Bank, FSB 264,904 53.13 47.35 89.13 1.89
WSBI Warwick Community Bancorp 298,170 79.95 57.96 72.49 14.54
WSFS WSFS Financial Corp. 1,515,217 102.91 52.09 50.62 42.55
WSTR WesterFed Financial Corp. 1,035,096 105.14 65.50 62.29 25.33
WVFC WVS Financial Corp. 292,022 97.44 55.77 57.23 28.97
WYNE Wayne Bancorp Inc. 270,043 91.24 67.06 73.50 11.85
YFCB Yonkers Financial Corp. 331,802 65.56 42.85 65.36 20.43
YFED York Financial Corp. 1,182,276 101.73 87.29 85.81 3.46
- ----------------------------------------- ---------------------------------------------------
Average 1,533,407 97.58 67.61 70.61 15.12
</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
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
NSLB NS&L Bancorp Inc. NASDAQ Neosho MO 2 06/08/95 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
Carnegie Savings Bank Carnegie PA 1 BIF Regular
Variance to the Comparable Median
</TABLE>
<PAGE>
Page 8 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>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 47,602 75.10 57.23 76.21 0.00
FLKY First Lancaster Bancshares 49,880 193.98 89.75 46.27 23.83
HBBI Home Building Bancorp 42,430 90.16 68.17 75.61 9.43
HWEN Home Financial Bancorp 43,504 134.87 80.32 59.55 22.99
LONF London Financial Corp. 37,916 94.91 76.78 80.90 4.48
MBSP Mitchell Bancorp Inc. 36,103 142.96 80.82 56.54 0.00
NSLB NS&L Bancorp Inc. 57,823 79.72 61.46 77.09 1.73
PWBK Pennwood Bancorp Inc. 47,211 84.23 64.71 76.82 3.07
RELI Reliance Bancshares Inc. 44,544 156.23 61.99 39.68 8.98
SCCB S. Carolina Community Bancshrs 45,092 102.09 79.79 78.16 0.00
- ----------------------------------------- ------------------------------------------------
Average
45,211 115.43 72.10 66.68 7.45
Median 44,818 98.50 72.48 75.91 3.78
Maximum 57,823 193.98 89.75 80.90 23.83
Minimum 36,103 75.10 57.23 39.68 0.00
Carnegie Savings Bank 16,723 63.15 57.32 90.76 0.00
Variance to the Comparable Median (28,095) (35.35) (15.16) 14.85 (3.78)
</TABLE>
<PAGE>
Page 9 of 40
Exhibit 7
Selected Data on all Public Thrifts
<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 (%) (%) (%) (%) (%)
- ------------------------------- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 7.44 5.33 29.97 5.73 8.77 11.83
%CCMD Chevy Chase Bank, FSB 6.08 5.05 17.72 6.65 7.91 13.01
AABC Access Anytime Bancorp Inc. 8.65 8.65 0.00 7.35 9.14 16.79
AADV Advantage Bancorp Inc. 10.02 9.44 6.45 6.58 10.59 14.97
ABBK Abington Bancorp Inc. 6.83 6.25 8.97 6.01 7.26 13.02
ABCL Alliance Bancorp Inc. 9.60 9.50 1.16 8.50 10.00 16.48
ABCW Anchor BanCorp Wisconsin 6.65 6.54 1.63 5.79 7.78 10.51
AFBC Advance Financial Bancorp 15.22 15.22 0.00 15.50 15.53 23.60
AFCB Affiliated Community Bancorp 9.79 9.74 0.50 9.88 10.54 18.59
AFED AFSALA Bancorp Inc. 12.52 12.52 0.00 12.48 13.22 29.70
AHCI Ambanc Holding Co. 11.37 11.37 0.00 9.27 12.16 21.87
AHM H.F. Ahmanson & Co. 5.13 4.56 11.70 5.87 5.94 11.82
ALBC Albion Banc Corp. 8.56 8.56 0.00 NA 8.95 NA
ALBK ALBANK Financial Corp. 8.81 6.98 22.32 NA 9.52 NA
AMFC AMB Financial Corp. 14.77 14.77 0.00 NA 15.18 NA
ANA Acadiana Bancshares Inc. 16.95 16.95 0.00 13.74 17.95 26.66
ANDB Andover Bancorp Inc. 8.10 8.10 0.00 8.20 9.04 15.04
ANE Alliance Bncp of New England 7.61 7.41 2.79 NA 8.82 NA
ASBI Ameriana Bancorp 11.21 11.20 0.06 10.46 11.49 19.12
ASBP ASB Financial Corp. 15.46 15.46 0.00 12.70 16.18 27.60
ASFC Astoria Financial Corp. 8.54 6.24 28.72 5.41 8.92 15.08
ATSB AmTrust Capital Corp. 10.83 10.73 0.99 10.00 11.55 17.00
AVND Avondale Financial Corp. 8.48 8.48 0.00 8.31 9.64 16.54
BANC BankAtlantic Bancorp Inc. 6.76 5.96 12.64 11.12 7.69 18.64
BDJI First Federal Bancorp. 10.18 10.18 0.00 9.27 10.55 18.78
BFD BostonFed Bancorp Inc. 8.37 8.09 3.66 NA 9.05 NA
BFFC Big Foot Financial Corp. 17.54 17.54 0.00 12.38 17.68 34.07
BFSB Bedford Bancshares Inc. 14.52 14.52 0.00 12.88 15.04 25.37
BKC American Bank of Connecticut 9.02 8.75 3.29 7.58 9.90 14.40
BKCT Bancorp Connecticut Inc. 10.60 10.60 0.00 10.02 11.79 17.33
BKUNA BankUnited Financial Corp. 4.81 4.35 10.00 7.12 4.95 12.91
BNKU Bank United Corp. 4.89 4.77 2.54 7.41 5.17 11.98
BPLS Bank Plus Corp. 4.35 3.98 8.92 5.48 5.56 11.99
BTHL Bethel Bancorp 8.48 7.36 14.28 7.38 9.63 13.39
BVCC Bay View Capital Corp. 5.35 4.48 16.99 6.36 6.53 10.87
BWFC Bank West Financial Corp. 13.66 13.66 0.00 11.62 13.81 22.22
BYFC Broadway Financial Corp. 10.57 10.57 0.00 8.61 11.43 14.69
CAFI Camco Financial Corp. 9.41 8.78 7.25 9.16 9.66 16.74
CAPS Capital Savings Bancorp Inc. 9.43 9.43 0.00 8.26 9.75 16.86
CASB Cascade Financial Corp. 6.94 6.94 0.00 6.88 7.91 11.96
CASH First Midwest Financial Inc. 10.83 9.77 10.82 8.40 11.33 14.30
CATB Catskill Financial Corp. 24.32 24.32 0.00 20.65 24.96 61.01
CBCI Calumet Bancorp Inc. 16.77 16.77 0.00 10.68 18.02 17.38
CBES CBES Bancorp Inc. 15.78 15.78 0.00 12.01 16.27 14.89
CBK Citizens First Financial Corp. 13.88 13.88 0.00 11.08 14.18 18.49
CBSA Coastal Bancorp Inc. 3.60 3.08 14.99 5.52 3.86 11.98
CBSB Charter Financial Inc. 15.54 14.14 10.49 12.53 16.11 22.83
CCFH CCF Holding Co. 10.66 10.66 0.00 9.53 11.23 15.08
CEBK Central Co-operative Bank 9.82 8.97 9.58 NA 10.61 NA
CENB Century Bancorp Inc. 30.15 30.15 0.00 19.17 30.69 44.51
CENF CENFED Financial Corp. 5.56 5.55 0.16 5.69 6.30 11.43
CFB Commercial Federal Corp. 6.38 5.79 9.83 6.83 7.04 14.40
CFBC Community First Banking Co. 17.80 17.61 1.32 12.00 18.36 17.42
CFCP Coastal Financial Corp. 5.97 5.97 0.00 6.01 6.87 11.09
CFFC Community Financial Corp. 13.63 13.63 0.00 11.68 14.20 17.45
CFNC Carolina Fincorp Inc. 22.71 22.71 0.00 14.98 23.07 NA
CFSB CFSB Bancorp Inc. 7.92 7.92 0.00 7.63 8.47 13.77
CFTP Community Federal Bancorp 26.46 26.46 0.00 23.54 26.72 54.93
CFX CFX Corp. 8.55 8.27 3.54 8.32 9.31 14.39
CIBI Community Investors Bancorp 11.58 11.58 0.00 11.00 12.12 20.70
CKFB CKF Bancorp Inc. 21.89 21.89 0.00 19.59 22.09 34.13
CLAS Classic Bancshares Inc. 15.06 13.14 14.67 11.60 15.68 23.5
CMRN Cameron Financial Corp 21.44 21.44 0.00 16.89 22.25 25.56
CMSB Commonwealth Bancorp Inc. 9.47 7.63 21.06 6.60 9.87 13.40
</TABLE>
<PAGE>
Page 9 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of 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 1.24 160.38 1.11 14.92 1.99 119.83 0.86 11.17
%CCMD Chevy Chase Bank, FSB 1.03 402.39 1.84 30.30 4.15 80.93 0.77 13.65
AABC Access Anytime Bancorp Inc. 2.90 32.57 1.58 18.26 0.95 31.35 1.44 22.55
AADV Advantage Bancorp Inc. 0.50 208.92 0.47 4.66 1.05 121.57 1.13 12.18
ABBK Abington Bancorp Inc. 0.19 366.56 0.17 2.44 0.68 233.13 0.87 12.60
ABCL Alliance Bancorp Inc. 0.31 178.52 0.27 2.79 0.56 147.57 0.79 8.54
ABCW Anchor BanCorp Wisconsin 0.60 235.13 0.97 14.59 1.42 117.38 1.04 15.95
AFBC Advance Financial Bancorp 0.90 38.71 0.79 5.17 0.35 27.69 0.87 5.67
AFCB Affiliated Community Bancorp 0.63 192.11 0.39 3.98 1.21 192.06 1.09 11.14
AFED AFSALA Bancorp Inc. 0.58 250.44 0.3 2.39 1.46 234.3 0.79 5.91
AHCI Ambanc Holding Co. 1.09 135.52 0.62 5.46 1.48 107.99 (0.54) (4.24)
AHM H.F. Ahmanson & Co. 2.09 58.49 1.73 33.72 1.22 46.72 0.87 17.14
ALBC Albion Banc Corp. 0.17 321.43 0.12 1.39 0.53 321.43 0.50 5.54
ALBK ALBANK Financial Corp. 0.86 118.60 0.7 7.94 1.02 81.33 1.19 13.03
AMFC AMB Financial Corp. NA NA NA NA 0.53 NA 1.10 6.83
ANA Acadiana Bancshares Inc. 0.59 223.09 0.50 2.94 1.32 201.03 0.98 5.62
ANDB Andover Bancorp Inc. 0.80 159.52 0.62 7.71 1.27 151.68 1.06 13.24
ANE Alliance Bncp of New England 2.06 92.34 1.56 20.56 1.91 75.91 0.86 12.29
ASBI Ameriana Bancorp 0.56 65.63 0.49 4.4 0.37 53.03 0.92 8.36
ASBP ASB Financial Corp. 0.12 876.09 0.08 0.53 1.03 78.25 0.92 5.89
ASFC Astoria Financial Corp. 0.88 105.11 0.52 6.04 0.92 67.77 0.82 10.23
ATSB AmTrust Capital Corp. 2.37 43.83 1.81 16.68 1.04 40.38 0.41 3.87
AVND Avondale Financial Corp. 2.52 101.74 1.35 15.88 2.56 86.34 (2.03) (22.59)
BANC BankAtlantic Bancorp Inc. NA NA 1.07 15.90 1.35 84.73 1.01 17.43
BDJI First Federal Bancorp. 0.03 NM 0.03 0.27 0.79 198.64 0.66 6.10
BFD BostonFed Bancorp Inc. 0.20 417.19 0.18 2.18 0.82 371.41 0.75 8.21
BFFC Big Foot Financial Corp. NA NA NA NA 0.30 150.75 NA NA
BFSB Bedford Bancshares Inc. 0.00 NM 0.00 0.00 0.60 96.46 1.20 8.39
BKC American Bank of Connecticut 3.07 49.97 2.11 23.44 1.54 41.86 1.33 15.85
BKCT Bancorp Connecticut Inc. 1.10 185.46 0.91 8.60 2.04 131.37 1.39 13.48
BKUNA BankUnited Financial Corp. 0.39 40.78 0.37 7.78 0.16 37.97 0.44 7.37
BNKU Bank United Corp. 0.72 50.53 0.68 14.00 0.36 41.06 0.70 13.66
BPLS Bank Plus Corp. 1.99 88.56 1.66 38.25 1.76 72.86 0.35 6.36
BTHL Bethel Bancorp NA NA NA NA 1.48 NA 0.68 7.97
BVCC Bay View Capital Corp. 0.49 328.08 0.51 9.50 1.59 230.25 0.45 7.32
BWFC Bank West Financial Corp. 0.50 44.48 0.48 3.53 0.22 32.03 0.72 4.92
BYFC Broadway Financial Corp. 0.93 109.40 1.62 15.37 1.02 52.84 0.29 2.61
CAFI Camco Financial Corp. 0.18 162.58 0.29 3.04 0.30 53.21 1.15 12.00
CAPS Capital Savings Bancorp Inc. 0.31 126.46 0.28 2.92 0.40 78.85 0.99 11.07
CASB Cascade Financial Corp. 0.17 663.11 0.35 5.09 1.13 274.48 0.66 10.11
CASH First Midwest Financial Inc. 0.58 137.44 0.74 6.84 0.80 67.97 0.96 8.51
CATB Catskill Financial Corp. 0.62 241.07 0.35 1.43 1.49 184.75 1.35 5.24
CBCI Calumet Bancorp Inc. 1.43 110.93 1.64 9.76 1.58 76.23 1.61 10.20
CBES CBES Bancorp Inc. 0.36 151.96 0.54 3.42 0.54 90.67 1.11 6.32
CBK Citizens First Financial Corp 0.46 77.92 0.62 4.43 0.36 44.35 0.71 4.82
CBSA Coastal Bancorp Inc. 1.37 42.72 0.71 19.60 0.58 NA 0.40 11.68
CBSB Charter Financial Inc. 0.67 113.66 0.62 4.02 0.76 90.95 1.35 9.19
CCFH CCF Holding Co. 0.24 288.02 0.20 1.86 0.70 288.02 0.14 1.10
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. 0.82 102.01 0.58 1.93 0.84 93.95 1.63 5.89
CENF CENFED Financial Corp. 0.90 118.49 0.97 17.36 1.07 76.38 0.64 12.38
CFB Commercial Federal Corp. 0.86 104.11 0.84 13.10 0.90 80.01 0.97 16.07
CFBC Community First Banking Co. 0.74 101.37 2.19 12.28 0.75 25.76 0.51 4.66
CFCP Coastal Financial Corp. 0.73 164.09 0.59 9.93 1.20 151.67 1.23 19.77
CFFC Community Financial Corp. 0.32 203.68 0.44 3.25 0.65 129.75 1.07 7.85
CFNC Carolina Fincorp Inc. 0.14 365.18 0.10 0.43 0.50 365.18 1.22 5.29
CFSB CFSB Bancorp Inc. 0.12 535.67 0.10 1.31 0.62 526.14 1.26 16.39
CFTP Community Federal Bancorp 0.69 65.50 0.49 1.87 0.45 53.05 1.32 4.54
CFX CFX Corp. 0.67 156.56 0.59 6.91 1.06 128.94 0.71 7.63
CIBI Community Investors Bancorp 0.71 88.24 0.65 5.57 0.62 82.39 0.97 8.33
CKFB CKF Bancorp Inc. 0.12 189.39 0.10 0.48 0.22 42.66 1.82 7.74
CLAS Classic Bancshares Inc. 0.25 374.21 0.34 2.25 0.92 148.74 0.83 5.58
CMRN Cameron Financial Corp 0.34 279.51 0.38 1.78 0.94 82.65 1.17 5.30
CMSB Commonwealth Bancorp Inc. 0.68 100.96 0.42 4.45 0.69 94.35 0.73 7.56
</TABLE>
<PAGE>
Page 10 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
----------------------------------------------------- -------------
Tangible Intangibl Regulato Equity + Total Capital/
Equity/ Equity/ Assets/ Core Cap/ Reserves/ Risk Adjusted
Assets Tang Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- --------------------- --------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 11.34 11.34 0.00 11.40 11.71 23.10
CNIT CENIT Bancorp Inc. 6.95 6.40 8.41 NA 7.49 NA
CNSB CNS Bancorp Inc. 24.33 24.33 0.00 19.92 24.73 40.19
CNY Carver Bancorp Inc. 8.48 8.19 3.78 7.63 9.17 18.01
COFI Charter One Financial 6.97 6.54 6.57 NA 7.54 NA
CONE Conestoga Bancorp, Inc. 16.18 16.18 0.00 12.17 16.22 27.71
COOP Cooperative Bankshares Inc. 7.67 7.67 0.00 7.67 7.90 14.92
CRSB Crusader Holding Corp. 2.88 2.88 0.00 NA 3.24 NA
CRZY Crazy Woman Creek Bancorp 23.64 23.64 0.00 18.41 24.07 46.36
CSBF CSB Financial Group Inc. 23.10 22.04 5.87 21.41 23.46 48.40
CTZN CitFed Bancorp Inc. 6.06 5.57 8.65 5.7 6.59 13.36
CVAL Chester Valley Bancorp Inc. 8.82 8.82 0.00 8.54 9.76 14.56
DCBI Delphos Citizens Bancorp Inc. 26.78 26.78 0.00 12.50 26.89 26.50
DIBK Dime Financial Corp. 8.27 8.07 2.61 8.17 9.56 21.90
DIME Dime Community Bancorp Inc. 12.51 11.00 13.55 9.22 13.29 18.68
DME Dime Bancorp Inc. 6.02 4.99 17.97 5.64 6.50 11.17
DNFC D & N Financial Corp. 5.40 5.36 0.91 6.55 5.98 11.98
DSL Downey Financial Corp. 7.37 NA NA 6.61 7.92 12.64
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. 36.37 36.37 0.00 23.83 36.55 65.78
EFBI Enterprise Federal Bancorp 10.75 10.75 0.04 9.97 10.96 17.95
EGFC Eagle Financial Corp. 7.06 5.80 18.94 7.65 7.51 18.37
EGLB Eagle BancGroup Inc. 11.86 11.86 0.00 9.99 12.41 16.30
EMLD Emerald Financial Corp. 8.03 7.93 1.37 7.74 8.30 12.85
EQSB Equitable Federal Savings Bank 5.20 5.20 0.00 5.20 5.38 11.66
ESBK Elmira Savings Bank (The) 6.35 6.20 2.62 6.19 7.01 10.23
ESX Essex Bancorp Inc. 7.83 7.75 1.16 8.07 8.92 14.47
ETFS East Texas Financial Services 17.47 17.47 0.00 14.80 17.70 38.80
FAB FIRSTFED AMERICA BANCORP INC. 11.17 11.17 0.00 9.36 12.09 19.35
FBBC First Bell Bancorp Inc. 10.80 10.80 0.00 10.59 10.91 23.39
FBCI Fidelity Bancorp Inc. 10.47 10.45 0.19 9.00 10.57 19.10
FBCV 1ST Bancorp 8.98 8.83 1.76 8.56 9.44 15.49
FBER 1st Bergen Bancorp 13.52 13.52 0.00 10.59 14.57 26.20
FBHC Fort Bend Holding Corp. 6.77 6.37 6.25 7.40 7.30 15.16
FBNW FirstBank Corp. 16.18 16.18 0.00 11.18 16.76 17.70
FBSI First Bancshares Inc. 14.40 14.40 0.00 11.72 14.72 17.62
FCB Falmouth Bancorp Inc. 23.94 23.94 0.00 NA 24.45 NA
FCBF FCB Financial Corp. 14.10 14.10 0.00 11.51 14.79 19.79
FCME First Coastal Corp. 9.75 9.75 0.00 9.02 11.53 15.95
FDEF First Defiance Financial 18.44 18.44 0.00 13.65 18.90 21.55
FED FirstFed Financial Corp. 5.36 5.31 0.84 6.28 7.39 12.29
FESX First Essex Bancorp Inc. 7.60 6.75 12.10 6.65 8.49 12.28
FFBA First Colorado Bancorp Inc. 13.46 13.22 2.03 12.49 13.76 23.76
FFBH First Federal Bancshares of AR 14.89 14.89 0.00 11.81 15.11 22.48
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. 7.61 7.60 0.10 6.75 8.57 11.10
FFCH First Financial Holdings Inc. 6.44 6.44 0.00 6.71 7.10 11.30
FFDB FirstFed Bancorp Inc. 9.69 8.97 8.17 8.91 10.34 17.01
FFDF FFD Financial Corp. 24.06 24.06 0.00 16.40 24.35 32.70
FFED Fidelity Federal Bancorp 7.28 7.28 0.00 8.74 8.11 13.16
FFES First Federal of East Hartford 6.82 6.82 0.00 6.95 7.08 23.13
FFFC FFVA Financial Corp. 13.69 13.47 1.87 10.35 14.27 20.78
FFFD North Central Bancshares Inc. 22.72 22.72 0.00 NA 23.68 NA
FFFL Fidelity Bankshares Inc. (MHC) 8.20 8.16 0.62 7.90 8.41 15.80
FFHH FSF Financial Corp. 10.91 10.91 0.00 9.90 11.13 18.50
FFHS First Franklin Corp. 9.21 9.17 0.50 6.75 9.65 14.90
FFIC Flushing Financial Corp. 12.54 12.10 3.94 9.11 13.13 19.76
FFKY First Federal Financial Corp. 13.67 13.02 5.47 12.26 14.14 19.48
FFLC FFLC Bancorp Inc. 12.85 12.85 0.00 NA 13.27 NA
FFOH Fidelity Financial of Ohio 12.01 10.74 11.87 10.12 12.32 19.33
FFPB First Palm Beach Bancorp Inc. 6.37 6.24 2.22 7.23 6.66 15.10
FFSL First Independence Corp. 9.99 9.99 0.00 8.51 10.58 19.87
</TABLE>
<PAGE>
Page 10 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of The Most Recent Quarter
-------------------------------------------------- -------------------------------------------
al/
eNPLs/ 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) 0.55 113.79 0.41 3.61 0.62 90.57 0.80 7.02
CNIT CENIT Bancorp Inc. 0.28 273.59 0.45 6.49 0.77 103.38 0.80 11.24
CNSB CNS Bancorp Inc. 0.72 80.20 0.50 2.07 0.58 80.20 0.79 3.20
CNY Carver Bancorp Inc. 1.73 66.93 1.05 12.36 1.15 41.11 (0.11) (1.33)
COFI Charter One Financial 0.35 251.20 0.30 4.27 0.89 150.61 0.79 11.28
CONE Conestoga Bancorp, Inc. 0.23 80.00 0.16 0.99 0.18 26.87 0.66 4.10
COOP Cooperative Bankshares Inc. 0.00 NM 0.07 0.90 0.30 142.58 0.61 7.87
CRSB Crusader Holding Corp. 0.56 78.42 0.54 18.75 0.44 45.13 NA NA
CRZY Crazy Woman Creek Bancorp 0.39 237.50 0.18 0.78 0.92 237.50 1.29 5.05
CSBF CSB Financial Group Inc. NA NA NA NA 0.63 52.91 0.49 1.98
CTZN CitFed Bancorp Inc. 0.51 198.71 0.37 6.03 1.01 143.6 0.88 13.82
CVAL Chester Valley Bancorp Inc. 0.30 385.96 0.25 2.78 1.15 385.96 1.00 11.64
DCBI Delphos Citizens Bancorp Inc. 0.43 29.22 0.35 1.29 0.13 29.22 1.62 5.82
DIBK Dime Financial Corp. 0.61 539.86 0.29 3.49 3.30 433.25 1.94 24.20
DIME Dime Community Bancorp Inc. 0.82 165.95 0.53 4.24 1.36 145.69 0.90 6.15
DME Dime Bancorp Inc. 1.37 51.54 1.06 17.57 0.71 45.34 0.60 11.04
DNFC D & N Financial Corp. 0.29 275.65 0.29 5.4 0.80 199.00 0.88 15.75
DSL Downey Financial Corp. 0.78 76.96 0.89 12.05 0.60 61.86 0.79 11.07
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. 0.00 NM 0.00 0.00 0.45 357.14 NA NA
EFBI Enterprise Federal Bancorp 0.00 NM 0.00 0.00 0.32 NM 0.83 6.94
EGFC Eagle Financial Corp. 0.74 116.03 0.52 7.32 0.86 87.45 0.42 5.93
EGLB Eagle BancGroup Inc. 1.37 55.33 1.36 11.44 0.76 40.27 0.30 2.46
EMLD Emerald Financial Corp. NA NA NA NA 0.35 NA 1.03 13.45
EQSB Equitable Federal Savings Bank 0.00 NM 0.38 7.31 0.26 32.66 0.75 14.84
ESBK Elmira Savings Bank (The) 0.64 133.30 0.63 9.89 0.86 103.23 0.42 6.67
ESX Essex Bancorp Inc. 1.06 119.5 1.92 24.53 1.27 51.58 0.12 1.41
ETFS East Texas Financial Services 0.66 68.42 0.33 1.90 0.45 68.42 0.64 3.48
FAB FIRSTFED AMERICA BANCORP INC. 0.37 324.39 0.35 3.14 1.19 263.67 0.17 1.49
FBBC First Bell Bancorp Inc. 0.11 112.78 0.09 0.87 0.12 112.78 1.08 10.25
FBCI Fidelity Bancorp Inc. 0.43 29.54 NA NA 0.13 NA 0.22 2.11
FBCV 1ST Bancorp 1.26 49.69 1.23 13.68 0.63 31.23 0.74 8.86
FBER 1st Bergen Bancorp 1.57 148.98 0.75 5.53 2.34 140.88 0.78 5.26
FBHC Fort Bend Holding Corp. 0.84 120.69 0.47 6.88 1.02 114.18 0.67 10.68
FBNW FirstBank Corp. 0.39 187.17 0.63 3.90 0.74 90.64 0.92 8.82
FBSI First Bancshares Inc. 0.04 905.26 0.04 0.25 0.37 76.11 1.16 8.38
FCB Falmouth Bancorp Inc. 0 NM 0 0 0.83 NM 1.00 4.04
FCBF FCB Financial Corp. 0.29 305.09 0.26 1.82 0.89 269.82 1.12 7.50
FCME First Coastal Corp. 2.06 121.23 1.59 16.33 2.49 108.25 4.13 46.76
FDEF First Defiance Financial 0.31 196.78 0.33 1.78 0.60 140.92 0.96 4.69
FED FirstFed Financial Corp. 0.91 287.76 0.96 18.00 2.62 210.84 0.56 11.25
FESX First Essex Bancorp Inc. 0.77 190.66 0.54 7.07 1.47 164.26 0.82 11.18
FFBA First Colorado Bancorp Inc. 0.18 223.19 0.15 1.12 0.40 201.71 1.31 9.92
FFBH First Federal Bancshares of AR 1.18 24.28 0.96 6.42 0.29 23.38 1.06 6.82
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. 0.66 166.83 0.57 7.55 1.10 149.74 0.97 12.67
FFCH First Financial Holdings Inc. 0.86 95.05 1.35 20.92 0.82 48.83 0.88 14.21
FFDB FirstFed Bancorp Inc. 0.92 103.21 NA NA 0.95 NA 0.96 9.89
FFDF FFD Financial Corp. 0.07 642.86 0.05 0.19 0.42 642.86 1.83 7.49
FFED Fidelity Federal Bancorp 0.34 299.50 0.30 4.11 1.01 240.48 0.73 12.62
FFES First Federal of East Hartford 1.23 108.72 0.25 3.64 1.33 88.43 0.57 8.80
FFFC FFVA Financial Corp. 0.19 530.28 0.11 0.80 1.02 530.28 1.15 8.65
FFFD North Central Bancshares Inc. NA NA NA NA 1.11 NA 1.86 7.94
FFFL Fidelity Bankshares Inc. (MHC) 0.47 58.82 0.40 4.82 0.28 51.95 0.67 7.63
FFHH FSF Financial Corp. 0.30 108.91 0.22 1.98 0.32 102.41 0.83 7.24
FFHS First Franklin Corp. 0.47 139.04 0.32 3.44 0.66 76.37 0.74 8.24
FFIC Flushing Financial Corp. 0.41 263.38 0.27 2.12 1.07 223.94 0.92 6.33
FFKY First Federal Financial Corp. 0 NM 0.07 0.49 0.52 98.79 1.63 11.94
FFLC FFLC Bancorp Inc. 0.08 695.87 0.19 1.46 0.53 224.83 1.00 7.18
FFOH Fidelity Financial of Ohio 0.23 167.81 0.18 1.54 0.38 167.81 0.93 7.22
FFPB First Palm Beach Bancorp Inc. 0.56 80.21 0.52 8.22 0.45 53.27 0.57 8.53
FFSL First Independence Corp. 1.15 70.91 0.89 8.90 0.81 40.91 0.65 6.26
</TABLE>
<PAGE>
Page 11 of 40
Exhibit 7
Selected Data on all Public Thrifts
<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 (%) (%) (%) (%) (%)
- ------------------------------- ----------------------------------------------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
FFSX First Fed SB of Siouxland(MHC) 8.85 8.79 0.77 8.73 9.22 17.24
FFWC FFW Corp. 9.57 8.81 8.81 6.75 9.95 12.05
FFWD Wood Bancorp Inc. 12.80 12.80 0.00 9.41 13.16 15.76
FFYF FFY Financial Corp. 13.59 13.59 0.00 9.16 14.06 16.26
FGHC First Georgia Holding Inc. 8.30 7.75 7.25 8.24 8.92 10.14
FIBC Financial Bancorp Inc. 8.93 8.90 0.44 6.58 9.43 17.93
FISB First Indiana Corp. 9.49 9.39 1.15 8.37 10.87 12.05
FKFS First Keystone Financial 6.62 6.62 0.00 8.42 7.07 20.51
FKKY Frankfort First Bancorp Inc. 16.96 16.96 0.00 18.83 17.04 36.55
FLAG FLAG Financial Corp. 9.11 9.11 0.00 8.65 11.06 14.54
FLFC First Liberty Financial Corp. 7.59 6.95 9.11 7.60 8.56 11.61
FLGS Flagstar Bancorp Inc. 5.98 5.75 3.98 5.71 6.22 10.83
FLKY First Lancaster Bancshares 28.50 28.50 0.00 27.40 28.81 39.80
FMBD First Mutual Bancorp Inc. 13.84 10.97 23.33 18.91 14.21 19.56
FMCO FMS Financial Corp. 6.49 6.40 1.46 7.51 6.99 16.23
FMSB First Mutual Savings Bank 6.88 6.88 0.00 NA 7.97 NA
FNGB First Northern Capital Corp. 11.06 11.06 0.00 10.19 11.53 16.65
FOBC Fed One Bancorp 11.06 10.65 4.21 9.80 11.47 24.50
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 9.05 7.35 18.98
FSFF First SecurityFed Financial 11.76 11.66 0.97 11.60 12.43 24.60
FSLA First Savings Bank (MHC) 9.69 8.93 8.66 8.86 10.27 22.44
FSNJ Bayonne Bancshares Inc. 15.75 15.75 0 12.17 16.24 34.91
FSPG First Home Bancorp Inc. 6.86 6.77 1.51 6.57 7.60 17.05
FSPT FirstSpartan Financial Corp. 26.40 26.40 0.00 19.00 26.79 31.57
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 15.15 15.15 0.00 15.11 15.78 25.68
FTFC First Federal Capital Corp. 7.08 6.72 5.41 6.39 7.58 12.23
FTNB Fulton Bancorp Inc. 23.98 23.98 0.00 16.20 24.89 29.60
FTSB Fort Thomas Financial Corp. 15.82 15.82 0.00 15.04 16.29 24.15
FWWB First SB of Washington Bancorp 13.38 12.51 7.39 12.63 14.03 23.03
GAF GA Financial Inc. 14.81 14.69 0.94 12.59 14.98 33.76
GDVS Greater Delaware Valley (MHC) 11.19 11.19 0.00 11.36 11.78 26.47
GDW Golden West Financial 6.81 6.81 0.00 6.47 7.40 13.14
GFCO Glenway Financial Corp. 9.29 9.20 1.05 8.40 9.61 13.80
GFED Guaranty Federal Bcshs Inc. 30.15 30.15 0.00 29.06 31.10 51.14
GFSB GFS Bancorp Inc. 11.83 11.83 0.00 10.20 12.52 19.37
GLMR Gilmer Financial Svcs, Inc. 9.02 9.02 0.00 8.80 9.75 19.20
GOSB GSB Financial Corp. 28.44 28.44 0.00 20.10 28.57 40.64
GPT GreenPoint Financial Corp. 9.70 5.54 45.46 7.08 10.54 15.49
GSB Golden State Bancorp Inc. 6.76 6.20 8.73 6.10 7.73 12.18
GSBC Great Southern Bancorp Inc. 8.74 8.68 0.81 7.50 10.85 11.20
GSFC Green Street Financial Corp. 35.23 35.23 0.00 35.23 35.37 79.66
GSLA GS Financial Corp. 43.13 43.13 0.00 32.84 43.42 95.29
GTPS Great American Bancorp 19.93 19.93 0.00 NA 20.28 NA
GUPB GFSB Bancorp Inc. 12.50 12.50 0.00 NA 12.82 NA
HALL Hallmark Capital Corp. 7.62 7.62 0.00 6.70 8.12 12.32
HARB Harbor Florida Bancorp (MHC) 8.93 8.68 2.97 7.69 9.94 15.52
HARL Harleysville Savings Bank 6.81 6.81 0.00 6.82 7.37 14.24
HARS Harris Financial Inc. (MHC) 8.12 7.31 10.85 6.81 8.51 13.65
HAVN Haven Bancorp Inc. 5.72 5.70 0.28 6.42 6.35 14.04
HBBI Home Building Bancorp 14.06 14.06 0.00 10.77 14.26 21.56
HBEI Home Bancorp of Elgin Inc. 27.00 27.00 0.00 20.88 NA 37.81
HBFW Home Bancorp 12.15 12.15 0.00 9.71 12.55 20.66
HBNK Highland Bancorp Inc. 7.55 7.55 0.00 6.85 9.16 10.65
HBS Haywood Bancshares Inc. 14.18 13.77 3.42 13.78 14.66 27.54
HCBB HCB Bancshares Inc. 18.65 18.12 3.49 NA 19.38 NA
HCBC High Country Bancorp Inc. 20.47 20.47 0.00 14.70 21.22 24.53
HCFC Home City Financial Corp. 19.61 19.61 0.00 15.19 20.24 26.57
HEMT HF Bancorp Inc. 7.87 6.70 15.90 6.17 8.24 15.58
HFBC HopFed Bancorp Inc. 9.27 9.27 0.00 7.98 9.39 21.95
HFFB Harrodsburg First Fin Bancorp 26.73 26.73 0.00 22.50 27.05 43.1
HFFC HF Financial Corp. 9.58 9.58 0.00 7.47 10.45 12.77
</TABLE>
<PAGE>
Page 11 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of The Most Recent Quarter
-------------------------------------------------- -------------------------------------------
l/
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>
FFSX First Fed SB of Siouxland(MHC) 0.19 257.66 0.14 1.62 0.49 195.85 0.74 8.70
FFWC FFW Corp. 0.33 168.93 0.31 3.28 0.56 120.30 1.03 10.50
FFWD Wood Bancorp Inc. 0.00 NM 0.02 0.14 0.44 93.94 1.44 11.43
FFYF FFY Financial Corp. 0.82 74.80 0.62 4.57 0.61 74.80 1.29 9.34
FGHC First Georgia Holding Inc. 1.59 44.40 1.64 19.79 0.71 12.42 1.12 13.49
FIBC Financial Bancorp Inc. 1.15 83.07 1.89 21.11 0.95 25.52 0.93 9.85
FISB First Indiana Corp. 1.34 121.6 1.38 14.60 1.63 100.34 1.17 12.16
FKFS First Keystone Financial 1.29 66.39 1.15 17.38 0.86 38.88 0.81 11.60
FKKY Frankfort First Bancorp Inc. 0.00 NM 0.00 0.00 0.08 71.94 0.18 0.84
FLAG FLAG Financial Corp. 5.47 51.58 3.92 43.07 2.82 49.66 0.91 10.01
FLFC First Liberty Financial Corp. 0.81 168.99 1.00 13.21 1.37 96.64 0.76 10.16
FLGS Flagstar Bancorp Inc. 2.44 11.23 3.04 50.79 0.27 8.02 1.43 22.94
FLKY First Lancaster Bancshares 1.55 21.68 2.25 7.88 0.34 8.62 1.17 3.64
FMBD First Mutual Bancorp Inc. 0.15 302.11 0.13 0.93 0.46 92.09 0.24 1.79
FMCO FMS Financial Corp. 1.63 57.50 1.15 17.73 0.94 43.53 1.03 15.86
FMSB First Mutual Savings Bank 0.00 NM 0.00 0.00 1.33 720.77 1.05 15.58
FNGB First Northern Capital Corp. 0.07 722.05 0.09 0.80 0.53 535.75 0.94 8.38
FOBC Fed One Bancorp 0.37 241.60 0.17 1.55 0.88 111.94 0.92 8.18
FPRY First Financial Bancorp NA NA NA NA 0.84 NA 0.57 8.95
FSBI Fidelity Bancorp Inc. 0.29 362.66 0.15 2.15 1.04 349.48 0.78 11.40
FSFF First SecurityFed Financial 0.00 NM 0.00 0.03 0.98 85.16 NA NA
FSLA First Savings Bank (MHC) 0.71 143.66 0.54 5.53 1.03 98.01 0.90 9.55
FSNJ Bayonne Bancshares Inc. 2.09 60.45 0.9 5.71 1.27 48.09 0.45 4.04
FSPG First Home Bancorp Inc. 1.11 122.39 0.77 11.17 1.36 95.63 0.93 14.03
FSPT FirstSpartan Financial Corp. 0.33 144.54 0.28 1.04 0.48 82.73 1.24 6.93
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 0.00 NM 0.07 0.49 0.76 377.18 1.74 11.13
FTFC First Federal Capital Corp. 0.35 173.20 0.32 4.48 0.61 155.81 1.13 17.20
FTNB Fulton Bancorp Inc. 1.1 100.1 1.05 4.38 1.10 86.26 1.26 5.09
FTSB Fort Thomas Financial Corp. 2.22 23.24 2.04 12.88 0.52 23.24 1.23 7.53
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. 0.56 76.28 0.22 1.49 0.43 76.28 1.15 7.19
GDVS Greater Delaware Valley (MHC) 0.49 203.17 1.32 11.80 1.00 38.83 0.83 7.20
GDW Golden West Financial 1.08 64.56 1.07 15.68 0.70 55.16 0.91 14.14
GFCO Glenway Financial Corp. 0.05 718.38 0.06 0.64 0.38 542.78 0.83 8.78
GFED Guaranty Federal Bcshs Inc. 0.52 237.08 0.61 2.02 1.24 154.73 1.02 7.19
GFSB GFS Bancorp Inc. 1.57 51.83 1.55 13.14 0.81 44.35 1.28 11.10
GLMR Gilmer Financial Svcs, Inc. 2.51 51.93 1.65 18.25 1.30 44.52 0.06 0.59
GOSB GSB Financial Corp. 0.17 137.39 0.10 0.35 0.23 137.39 0.64 3.79
GPT GreenPoint Financial Corp. 3.99 30.70 2.90 29.86 1.22 28.75 1.12 11.00
GSB Golden State Bancorp Inc. 1.04 125.35 1.08 15.92 1.31 90.12 0.66 10.22
GSBC Great Southern Bancorp Inc. 1.60 155.26 1.84 20.99 2.48 114.98 1.90 22.00
GSFC Green Street Financial Corp. 0.10 197.67 0.07 0.20 0.20 197.67 1.60 4.48
GSLA GS Financial Corp. 0.00 NM 0.01 0.02 0.81 211.96 1.31 3.48
GTPS Great American Bancorp NA NA NA NA 0.44 126.79 0.63 3.02
GUPB GFSB Bancorp Inc. 0.44 132.26 0.24 1.95 0.58 132.26 0.89 6.11
HALL Hallmark Capital Corp. 0.13 563.39 0.09 1.20 0.71 471.85 0.67 9.31
HARB Harbor Florida Bancorp (MHC) 0.37 355.94 0.51 5.69 1.31 197.92 1.28 15.29
HARL Harleysville Savings Bank 0.00 NM 0.00 0.02 0.78 NM 1.02 15.63
HARS Harris Financial Inc. (MHC) 0.76 124.14 0.62 7.63 0.94 63.10 0.89 10.80
HAVN Haven Bancorp Inc. 1.09 99.97 0.66 11.51 1.09 96.47 0.62 10.41
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. NA NA 0.35 1.31 NA NA 0.80 2.93
HBFW Home Bancorp 0.00 NM 0.00 0.00 0.47 464.55 0.86 6.54
HBNK Highland Bancorp Inc. 2.09 96.94 1.94 25.70 2.03 82.92 1.20 16.17
HBS Haywood Bancshares Inc. 0.71 90.28 0.67 4.76 0.64 71.19 1.37 9.41
HCBB HCB Bancshares Inc. NA NA NA NA 1.42 NA 0.30 2.00
HCBC High Country Bancorp Inc. 0.52 177.96 0.42 2.03 0.93 177.96 NA NA
HCFC Home City Financial Corp. 0.95 77.27 0.82 4.16 0.73 77.27 NA NA
HEMT HF Bancorp Inc. 1.45 46.07 1.38 17.49 0.67 27.21 0.03 0.43
HFBC HopFed Bancorp Inc. 0 NM 0 0 0.23 93.93 0.77 8.99
HFFB Harrodsburg First Fin Bancorp 0.00 NM 0.00 0.00 0.41 70.72 1.36 5.06
HFFC HF Financial Corp. 0.35 324.37 0.33 3.44 1.14 241.11 1.07 11.48
</TABLE>
<PAGE>
Page 12 of 40
Exhibit 7
Selected Data on all Public Thrifts
<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 (%) (%) (%) (%) (%)
- ------------------------------- ------------------------ ---------- ---------- --------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
HFGI Harrington Financial Group 4.47 4.47 0.00 6.08 4.51 26.82
HFNC HFNC Financial Corp. 18.24 18.24 0.00 16.20 19.03 30.60
HFSA Hardin Bancorp Inc. 11.34 11.34 0.00 10.32 11.54 20.84
HFWA Heritage Financial Corp. 8.82 8.82 0.00 10.90 9.67 15.80
HHFC Harvest Home Financial Corp. 11.12 11.12 0.00 NA 11.25 NA
HIFS Hingham Instit. for Savings 9.60 9.60 0.00 9.80 10.30 15.66
HMLK Hemlock Federal Financial Corp 17.22 17.22 0.00 NA 17.66 NA
HMNF HMN Financial Inc. 12.22 11.45 7.16 NA 12.62 NA
HOMF Home Federal Bancorp 8.80 8.58 2.80 8.2 9.36 12.41
HPBC Home Port Bancorp Inc. 10.51 10.51 0.00 10.51 11.76 18.59
HRBF Harbor Federal Bancorp Inc. 12.49 12.49 0.00 9.41 12.68 21.79
HRZB Horizon Financial Corp. 15.93 15.93 0.00 15.90 16.60 29.25
HTHR Hawthorne Financial Corp. 4.56 4.56 0.00 7.55 5.99 11.48
HWEN Home Financial Bancorp 16.99 16.99 0.00 14.40 17.62 25.50
HZFS Horizon Financial Svcs Corp. 10.16 10.16 0.00 7.48 10.59 13.76
IBSF IBS Financial Corp. 17.74 17.74 0.00 17.58 17.89 61.69
IFSB Independence Federal Svgs Bank 7.25 6.50 10.99 6.43 7.46 16.01
INBI Industrial Bancorp Inc. 16.72 16.72 0.00 9.86 17.20 19.03
INCB Indiana Community Bank SB 12.15 12.15 0.00 NA 12.85 NA
IPSW Ipswich Savings Bank 5.21 5.21 0.00 5.40 5.94 11.59
ITLA ITLA Capital Corp. 9.78 NA NA NA 10.98 12.70
IWBK InterWest Bancorp Inc. 6.73 6.62 1.68 6.56 7.16 13.89
JOAC Joachim Bancorp Inc. 28.91 28.91 0.00 24.20 29.13 48.40
JSB JSB Financial Inc. 23.21 23.21 0.00 15.07 23.59 20.78
JSBA Jefferson Savings Bancorp 9.03 7.22 21.56 7.44 9.70 13.91
JXSB Jacksonville Savings Bk (MHC) 10.41 10.41 0.00 10.36 10.81 15.24
JXVL Jacksonville Bancorp Inc. 14.63 14.63 0.00 NA 15.12 NA
KFBI Klamath First Bancorp 15.07 13.96 8.62 11.44 15.22 24.34
KNK Kankakee Bancorp Inc. 11.01 10.45 5.72 9.00 11.63 16.30
KSAV KS Bancorp Inc. 12.81 12.81 0.02 NA 13.10 12.03
KSBK KSB Bancorp Inc. 7.56 7.25 4.47 NA 8.44 NA
KYF Kentucky First Bancorp Inc. 17.02 17.02 0.00 14.50 17.47 27.06
LARK Landmark Bancshares Inc. 14.09 14.09 0.00 10.77 14.54 22.68
LARL Laurel Capital Group Inc. 10.57 10.57 0.00 10.33 11.42 21.21
LFBI Little Falls Bancorp Inc. 11.68 10.87 7.77 8.04 12.03 22.13
LFCO Life Financial Corp. 13.39 13.39 0.00 5.30 14.02 10.32
LFED Leeds Federal Bankshares (MHC) 16.63 16.63 0.00 16.19 16.82 32.64
LISB Long Island Bancorp Inc. 9.18 9.10 0.89 7.37 9.73 15.81
LOGN Logansport Financial Corp. 19.21 19.21 0.00 19.10 19.49 35.37
LONF London Financial Corp. 13.76 13.76 0.00 16.00 14.24 31.48
LSBI LSB Financial Corp. 8.58 8.58 0.00 NA 9.30 NA
LSBX Lawrence Savings Bank 10.45 10.45 0.00 9.85 11.33 18.14
LVSB Lakeview Financial 10.69 9.19 15.40 7.60 11.37 14.50
LXMO Lexington B&L Financial Corp. 18.34 17.39 6.24 21.80 18.98 40.10
MAFB MAF Bancorp Inc. 7.62 6.77 11.89 6.88 8.07 14.34
MARN Marion Capital Holdings 20.78 20.43 2.15 18.74 21.85 29.81
MASB MASSBANK Corp. 11.21 11.07 1.43 10.15 11.47 35.01
MBB MSB Bancorp Inc. 9.84 6.23 39.05 6.27 10.14 13.41
MBBC Monterey Bay Bancorp Inc. 11.75 11.04 6.74 9.40 12.15 17.24
MBLF MBLA Financial Corp. 12.68 12.68 0.00 11.88 12.98 32.10
MBSP Mitchell Bancorp Inc. 40.13 40.13 0.00 32.30 40.65 57.00
MCBN Mid-Coast Bancorp Inc. 8.34 8.34 0.00 8.01 8.86 14.92
MDBK Medford Bancorp Inc. 8.94 8.46 5.89 8.46 9.53 15.75
MECH MECH Financial Inc. 9.92 9.92 0.00 NA 11.50 NA
MERI Meritrust Federal SB 8.50 8.50 0.00 8.68 8.71 18.08
METF Metropolitan Financial Corp. 3.96 3.65 8.15 5.47 4.57 8.39
MFBC MFB Corp. 12.70 12.70 0.00 12.30 12.84 24.68
MFFC Milton Federal Financial Corp. 11.84 11.84 0.00 10.02 12.07 21.77
MFLR Mayflower Co-operative Bank 9.75 9.62 1.52 9.75 10.62 15.55
MFSL Maryland Federal Bancorp 8.66 8.58 1.04 8.08 9.06 16.13
MIFC Mid-Iowa Financial Corp. 9.36 9.35 0.09 7.58 9.58 18.81
MIVI Mississippi View Holding Co. 18.18 18.18 0.00 16.36 19.44 33.09
MONT Montgomery Financial Corp. 18.60 18.60 0.00 14.32 18.78 21.92
MRKF Market Financial Corp. 35.56 35.56 0.00 23.72 35.65 64.07
</TABLE>
<PAGE>
Page 12 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of 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>
HFGI Harrington Financial Group 0.27 69.97 0.18 3.96 0.19 21.99 0.20 3.99
HFNC HFNC Financial Corp. 0.62 157.77 0.79 4.33 0.98 100.96 1.22 5.96
HFSA Hardin Bancorp Inc. 0.36 106.88 0.19 1.67 0.39 106.88 0.76 6.06
HFWA Heritage Financial Corp. 0.16 817.44 0.10 1.19 1.30 817.44 NA NA
HHFC Harvest Home Financial Corp. 0.07 393.33 0.03 0.29 0.27 393.33 0.67 5.73
HIFS Hingham Instit. for Savings 0.98 91.33 0.77 7.99 0.89 91.33 1.26 13.00
HMLK Hemlock Federal Financial Cor 0.33 301.56 0.15 0.84 1.01 301.56 0.58 4.44
HMNF HMN Financial Inc. NA NA NA NA 0.61 340.52 0.98 6.79
HOMF Home Federal Bancorp 0.64 104.49 0.55 6.25 0.67 101.25 1.38 16.20
HPBC Home Port Bancorp Inc. 0 NM 0 0 1.47 NM 1.68 15.77
HRBF Harbor Federal Bancorp Inc. 0.83 37.43 0.53 4.21 0.31 37.43 0.75 5.77
HRZB Horizon Financial Corp. 0 NM 0 0 0.84 NM 1.57 10.05
HTHR Hawthorne Financial Corp. NA NA NA NA 1.56 NA 1.08 22.30
HWEN Home Financial Bancorp 1.23 64.10 1.63 9.61 0.79 38.73 0.81 4.55
HZFS Horizon Financial Svcs Corp. 1.29 52.34 0.96 9.45 0.67 44.55 0.85 8.36
IBSF IBS Financial Corp. 0.38 130.18 0.11 0.64 0.49 130.18 0.79 4.36
IFSB Independence Federal Svgs Ban NA NA NA NA 0.36 NA 0.54 8.03
INBI Industrial Bancorp Inc. 0.23 236.04 0.23 1.35 0.54 155.81 1.48 8.38
INCB Indiana Community Bank SB NA NA NA NA 0.94 NA 0.52 4.28
IPSW Ipswich Savings Bank 0.55 176.11 0.95 18.29 0.96 77.31 1.18 20.68
ITLA ITLA Capital Corp. NA NA NA NA 1.50 NA 1.37 13.26
IWBK InterWest Bancorp Inc. 0.56 132.39 0.69 10.26 0.74 62.65 1.09 16.51
JOAC Joachim Bancorp Inc. 0.29 102.74 0.21 0.74 0.30 89.29 0.75 2.62
JSB JSB Financial Inc. 1.56 39.27 1.02 4.39 0.61 35.16 1.93 8.62
JSBA Jefferson Savings Bancorp 0.49 183.25 0.67 7.38 0.89 101.16 0.79 9.60
JXSB Jacksonville Savings Bk (MHC) 1.17 43.32 0.94 9.05 0.51 42.01 0.59 5.69
JXVL Jacksonville Bancorp Inc. 0.63 104.86 0.7 4.81 0.66 70.27 1.49 9.90
KFBI Klamath First Bancorp 0.03 932.65 0.02 0.10 0.24 932.65 1.07 6.11
KNK Kankakee Bancorp Inc. 0.72 122.13 0.89 8.1 0.88 49.02 0.87 8.04
KSAV KS Bancorp Inc. 0.53 64.74 0.44 3.44 0.34 64.74 1.09 8.37
KSBK KSB Bancorp Inc. NA NA NA NA 1.12 NA 1.08 14.51
KYF Kentucky First Bancorp Inc. 0.07 NM 0.04 0.22 0.77 348.65 1.13 6.77
LARK Landmark Bancshares Inc. 0.07 949.09 0.15 1.08 0.62 151.09 1.08 7.63
LARL Laurel Capital Group Inc. 0.54 225.09 0.42 3.96 1.22 203.92 1.40 13.45
LFBI Little Falls Bancorp Inc. 1.68 45.47 0.9 7.67 0.77 38.49 0.57 4.37
LFCO Life Financial Corp. NA NA NA NA 0.80 NA 3.61 31.20
LFED Leeds Federal Bankshares (MHC) 0.05 566.67 0.03 0.2 0.30 453.33 1.21 7.36
LISB Long Island Bancorp Inc. 1.24 73.47 0.89 9.66 0.91 62.67 0.86 9.45
LOGN Logansport Financial Corp. 0.67 56.84 0.62 3.25 0.38 45.62 1.50 7.71
LONF London Financial Corp. 0.26 238.16 0.20 1.46 0.62 238.16 1.08 5.62
LSBI LSB Financial Corp. NA NA NA NA 0.82 NA 0.80 9.07
LSBX Lawrence Savings Bank 0.64 298.58 0.52 4.95 1.91 168.85 2.31 25.64
LVSB Lakeview Financial 1.75 85.36 1.14 10.67 1.49 59.91 1.43 13.47
LXMO Lexington B&L Financial Corp. 0.79 119.11 0.54 2.93 0.94 119.11 1.14 4.35
MAFB MAF Bancorp Inc. 0.31 182.92 0.26 3.40 0.57 138.86 1.14 14.69
MARN Marion Capital Holdings 1.24 104.88 1.43 6.91 1.30 74.17 1.58 7.09
MASB MASSBANK Corp. 0.65 131.79 0.19 1.71 0.86 131.79 1.12 10.51
MBB MSB Bancorp Inc. NA NA NA NA 0.63 NA 0.53 6.15
MBBC Monterey Bay Bancorp Inc. 0.88 71.14 0.65 5.56 0.63 62.58 0.43 3.87
MBLF MBLA Financial Corp. 0.81 62.09 0.48 3.75 0.51 62.09 0.81 6.31
MBSP Mitchell Bancorp Inc. 1.88 34.31 1.77 4.41 0.64 29.42 1.51 3.62
MCBN Mid-Coast Bancorp Inc. 0.93 71.43 0.85 10.25 0.66 48.53 0.75 8.91
MDBK Medford Bancorp Inc. 0.30 390.09 0.16 1.75 1.17 379.54 1.05 11.81
MECH MECH Financial Inc. 0.68 351.65 0.58 5.87 2.39 270.14 1.61 15.99
MERI Meritrust Federal SB 0.32 128.24 0.20 2.31 0.41 62.38 1.18 14.45
METF Metropolitan Financial Corp. 0.39 203.47 0.52 13.09 0.79 108.45 0.69 17.58
MFBC MFB Corp. 0.00 NM 0.00 0.00 0.18 162.45 0.83 6.04
MFFC Milton Federal Financial Corp. 0.14 243.72 0.09 0.77 0.35 83.77 0.65 4.87
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 0.35 135.21 0.42 4.88 0.47 65.66 0.82 9.73
MIFC Mid-Iowa Financial Corp. 0.39 105.32 0.21 2.23 0.41 105.32 1.21 13.06
MIVI Mississippi View Holding Co. 0.65 290.24 0.43 2.38 1.90 225.65 1.08 6.37
MONT Montgomery Financial Corp. 0.67 29.14 0.75 4.02 0.19 22.34 0.73 4.61
MRKF Market Financial Corp. 0.00 NM 0.00 0.00 0.18 26.94 1.04 3.15
</TABLE>
<PAGE>
Page 13 of 40
Exhibit 7
Selected Data on all Public Thrifts
<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 (%) (%) (%) (%) (%)
- ------------------------------- ------------ ----------- ---------- ----------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
MSBF MSB Financial Inc. 16.86 16.86 0.00 12.51 17.29 21.21
MSBK Mutual Savings Bank FSB 6.58 6.58 0.00 6.65 6.89 15.76
MWBI Midwest Bancshares Inc. 7.23 7.23 0.00 6.42 7.61 14.82
MWBX MetroWest Bank 7.35 7.35 0.00 7.49 8.69 11.25
MWFD Midwest Federal Financial 9.00 8.73 3.32 7.27 9.77 10.01
MYST Mystic Financial Inc. 6.36 6.36 0.00 NA 6.93 NA
NASB North American Savings Bank 8.49 8.26 2.92 8.40 9.35 14.00
NBN Northeast Bancorp 8.26 7.58 9.00 7.58 9.26 12.34
NBSI North Bancshares Inc. 13.49 13.49 0.00 10.86 13.66 24.65
NEIB Northeast Indiana Bancorp 14.37 14.37 0.00 12.09 14.97 20.03
NHTB New Hampshire Thrift Bncshrs 8.04 7.03 13.54 6.47 9.00 11.86
NMSB NewMil Bancorp Inc. 9.32 9.32 0.00 10.35 10.88 20.27
NSLB NS&L Bancorp Inc. 19.74 19.62 0.73 15.70 19.82 34.30
NSSY NSS Bancorp Inc. 8.14 7.92 2.94 7.80 9.10 15.87
NTBK Net.B@nk Inc. 43.11 43.11 0.00 34.23 43.59 69.95
NTMG Nutmeg Federal S&LA 8.25 8.25 0.00 8.15 8.73 13.42
NWEQ Northwest Equity Corp. 11.61 11.61 0.00 8.86 12.08 13.93
NWSB Northwest Bancorp Inc. (MHC) 9.25 8.29 11.26 8.32 9.87 16.77
NYB New York Bancorp Inc. 5.46 5.46 0.00 5.03 6.03 11.53
OCFC Ocean Financial Corp. 14.27 14.27 0 11.91 14.70 29.9
OCN Ocwen Financial Corp. 13.67 13.23 3.71 NA NA NA
OFCP Ottawa Financial Corp. 8.62 7.13 18.66 6.78 8.99 11.34
OHSL OHSL Financial Corp. 10.90 10.90 0.00 8.77 11.12 17.26
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. 12.88 12.81 0.62 11.67 13.54 25.15
PBCT People's Bank (MHC) 8.67 8.63 0.52 8.80 9.72 13.00
PBHC Pathfinder Bancorp Inc. (MHC) 11.99 10.34 15.29 8.57 12.41 14.47
PBKB People's Bancshares Inc. 3.95 3.81 3.81 NA 4.51 NA
PCBC Perry County Financial Corp. 19.24 19.24 0.00 16.00 19.27 70.20
PDB Piedmont Bancorp Inc. 16.18 16.18 0.00 15.03 16.85 28.18
PEDE Great Pee Dee Bancorp 42.85 42.85 0.00 NA 43.29 NA
PEEK Peekskill Financial Corp. 25.24 25.24 0.00 NA 25.59 NA
PERM Permanent Bancorp Inc. 10.00 9.89 1.17 8.95 10.50 22.05
PERT Perpetual Bank (MHC) 10.48 10.48 0.00 9.44 11.15 15.57
PFDC Peoples Bancorp 15.26 15.26 0.00 12.20 15.57 24.80
PFED Park Bancorp Inc. 21.81 21.81 0.00 14.50 22.10 37.80
PFFB PFF Bancorp Inc. 9.70 9.62 0.99 8.12 10.64 15.65
PFFC Peoples Financial Corp. 18.85 18.85 0.00 16.62 19.03 36.47
PFNC Progress Financial Corp. 5.09 4.31 16.05 6.50 5.76 10.00
PFSB PennFed Financial Services Inc 6.96 6.02 14.31 6.93 7.15 15.20
PFSL Pocahontas FS&LA (MHC) 6.36 6.36 0.00 6.36 6.80 16.18
PHBK Peoples Heritage Finl Group 6.99 5.35 24.84 7.17 7.99 11.95
PHFC Pittsburgh Home Financial Corp 8.23 8.14 1.19 17.52 8.71 17.52
PHSB Peoples Home Savings Bk (MHC) 13.14 13.14 0.00 NA 13.78 NA
PKPS Poughkeepsie Financial Corp. 8.29 8.29 0.00 6.95 9.37 11.62
PLSK Pulaski Savings Bank (MHC) 11.93 11.93 0.00 11.93 12.44 28.28
PMFI Perpetual Midwest Financial 8.92 8.92 0.00 8.19 9.67 12.23
PRBC Prestige Bancorp Inc. 10.91 10.91 0.00 8.83 11.19 18.78
PROV Provident Financial Holdings 11.58 11.58 0.00 8.63 12.41 14.32
PSBK Progressive Bank Inc. 8.88 8.12 9.33 7.98 9.99 15.79
PSFC Peoples-Sidney Financial Corp. 24.74 24.74 0.00 16.70 25.13 27.10
PSFI PS Financial Inc. 37.32 37.32 0.00 37.33 37.54 110.85
PTRS Potters Financial Corp. 8.81 8.81 0.00 7.98 10.53 17.63
PULB Pulaski Bank, Svgs Bank (MHC) 13.41 13.41 0.00 13.38 13.78 26.90
PULS Pulse Bancorp 8.20 8.20 0.00 7.51 8.63 26.88
PVFC PVF Capital Corp. 7.28 7.28 0.00 7.32 7.98 10.53
PVSA Parkvale Financial Corp. 7.91 7.87 0.56 7.27 9.33 14.28
PWBC PennFirst Bancorp Inc. 7.52 NA NA NA NA NA
PWBK Pennwood Bancorp Inc. 17.98 17.98 0.00 17.98 18.50 32.39
QCBC Quaker City Bancorp Inc. 8.63 8.63 0.00 7.30 9.56 13.19
QCFB QCF Bancorp Inc. 17.57 17.57 0.00 NA 18.41 NA
QCSB Queens County Bancorp Inc. 10.64 10.64 0.00 9.30 11.22 15.26
RARB Raritan Bancorp Inc. 7.56 7.46 1.40 7.33 8.37 13.51
</TABLE>
<PAGE>
Page 13 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of 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>
MSBF MSB Financial Inc. 0.02 NM 0.02 0.12 0.46 51.31 1.51 8.83
MSBK Mutual Savings Bank FSB 0.08 754.41 0.07 1.07 0.62 434.66 0.08 1.19
MWBI Midwest Bancshares Inc. 0.84 73.86 0.73 10.15 0.62 52.45 0.87 12.56
MWBX MetroWest Bank 0.62 287.10 0.58 7.90 1.78 130.81 1.33 17.94
MWFD Midwest Federal Financial NA NA NA NA 1.02 NA 1.45 16.71
MYST Mystic Financial Inc. 0.29 315.24 0.18 2.86 0.91 315.24 NA NA
NASB North American Savings Bank 2.93 33.69 3.07 36.15 0.99 27.86 1.67 21.15
NBN Northeast Bancorp 1.29 94.16 1.24 15.04 1.21 80.05 0.66 8.47
NBSI North Bancshares Inc. 0.00 NM 0.00 0.00 0.26 NM 0.53 3.70
NEIB Northeast Indiana Bancorp 0.19 353.23 0.17 1.20 0.67 350.00 1.20 7.78
NHTB New Hampshire Thrift Bncshrs 0.34 349.43 0.44 5.45 1.18 146.88 0.88 11.44
NMSB NewMil Bancorp Inc. 1.51 214.55 0.78 8.39 3.24 172.67 0.87 8.49
NSLB NS&L Bancorp Inc. 0.02 612.5 0.01 0.07 0.14 36.57 0.72 3.63
NSSY NSS Bancorp Inc. 1.69 86.23 1.14 14.03 1.46 73.30 0.94 11.68
NTBK Net.B@nk Inc. 0.00 NM 0.00 0.00 1.14 NM NA NA
NTMG Nutmeg Federal S&LA 0.71 76.74 1.17 14.15 0.55 30.83 0.68 9.71
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) 0.72 117.54 0.72 7.83 0.85 86.28 0.94 9.80
NYB New York Bancorp Inc. 1.12 80.91 0.74 13.53 0.91 66.31 1.65 31.67
OCFC Ocean Financial Corp. 0.7 119.03 0.45 3.13 0.84 97.91 0.97 6.00
OCN Ocwen Financial Corp. NA NA NA NA NA NA 2.78 27.22
OFCP Ottawa Financial Corp. 0.28 158.32 0.27 3.09 0.44 109.69 0.87 9.93
OHSL OHSL Financial Corp. 0.04 688.31 0.03 0.30 0.31 73.10 0.87 7.86
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. 2.36 49.10 1.70 13.18 1.16 29.81 1.37 10.34
PBCT People's Bank (MHC) 0.96 163.86 0.68 7.85 1.57 153.86 1.18 13.92
PBHC Pathfinder Bancorp Inc. (MHC) 1.25 54.12 1.17 9.74 0.68 36.05 0.97 7.94
PBKB People's Bancshares Inc. 1.03 101.37 0.57 14.41 1.04 98.78 0.83 16.65
PCBC Perry County Financial Corp. 0.06 277.78 0.01 0.06 0.17 277.78 1.08 5.72
PDB Piedmont Bancorp Inc. 0.87 93.11 1.13 6.96 0.81 52.20 1.22 7.26
PEDE Great Pee Dee Bancorp 0.56 102.58 0.45 1.06 0.57 97.55 NA NA
PEEK Peekskill Financial Corp. 2.90 46.24 0.77 3.03 1.34 39.49 1.09 4.23
PERM Permanent Bancorp Inc. 1.25 77.05 0.70 7.05 0.97 70.95 0.62 6.54
PERT Perpetual Bank (MHC) NA NA NA NA 1.02 NA 0.78 6.55
PFDC Peoples Bancorp 0.28 133.33 0.25 1.67 0.37 102.04 1.49 9.78
PFED Park Bancorp Inc. 0.49 147.06 0.23 1.04 0.73 125.00 0.87 3.84
PFFB PFF Bancorp Inc. 1.61 85.46 1.38 14.27 1.38 67 0.55 5.32
PFFC Peoples Financial Corp. 0.02 NM 0.04 0.2 0.25 480.65 0.79 3.27
PFNC Progress Financial Corp. 0.63 157.35 0.50 9.83 1.00 63.33 0.92 17.51
PFSB PennFed Financial Services In 0.63 44.69 0.55 7.97 0.28 33.00 0.81 11.05
PFSL Pocahontas FS&LA (MHC) 0.26 396.55 0.13 2.08 1.02 194.26 0.63 9.86
PHBK Peoples Heritage Finl Group 0.90 155.33 0.75 10.78 1.40 114.30 1.28 16.45
PHFC Pittsburgh Home Financial Cor 2.23 33.93 1.68 20.40 0.76 28.88 0.82 7.53
PHSB Peoples Home Savings Bk (MHC) 0.80 173.17 0.38 2.93 1.38 146.58 0.79 7.33
PKPS Poughkeepsie Financial Corp. 3.63 38.49 3.32 40.01 1.40 26.72 0.28 3.29
PLSK Pulaski Savings Bank (MHC) 0.86 102.47 0.53 4.43 0.89 95.10 0.64 6.01
PMFI Perpetual Midwest Financial 0.43 199.93 0.37 4.19 0.86 193.33 0.49 5.67
PRBC Prestige Bancorp Inc. 0.63 65.96 0.43 3.91 0.42 65.96 0.59 5.12
PROV Provident Financial Holdings 1.07 90.34 1.41 12.19 0.96 56.25 0.78 5.74
PSBK Progressive Bank Inc. 1.02 167.65 0.73 8.22 1.71 150.14 0.98 11.46
PSFC Peoples-Sidney Financial Corp. 0.94 47.72 0.82 3.33 0.45 34.69 1.14 5.75
PSFI PS Financial Inc. 1.64 31.79 0.68 1.83 0.52 31.79 2.03 5.26
PTRS Potters Financial Corp. 0.68 389.09 0.44 5.00 2.65 389.09 0.98 10.93
PULB Pulaski Bank, Svgs Bank (MHC) NA NA NA NA 0.46 NA 1.07 8.15
PULS Pulse Bancorp 2.75 60.73 0.85 10.32 1.67 43.79 1.10 13.71
PVFC PVF Capital Corp. 0.73 102.9 0.96 13.14 0.75 65.77 1.36 19.17
PVSA Parkvale Financial Corp. 0.47 397.79 0.36 4.49 1.88 397.79 1.07 14.71
PWBC PennFirst Bancorp Inc. NA NA 0.45 5.98 NA NA 0.68 9.07
PWBK Pennwood Bancorp Inc. 1.07 74.85 0.74 4.13 0.80 34.66 0.96 5.14
QCBC Quaker City Bancorp Inc. 1.41 83.43 1.33 15.40 1.18 70.08 0.73 8.37
QCFB QCF Bancorp Inc. 0.67 288.79 0.39 2.24 1.95 214.67 1.62 9.27
QCSB Queens County Bancorp Inc. 0.43 154.61 0.44 4.16 0.67 108.40 1.61 12.95
RARB Raritan Bancorp Inc. 0.34 365.19 0.23 3.06 1.23 349.74 1.02 13.13
</TABLE>
<PAGE>
Page 14 of 40
Exhibit 7
Selected Data on all Public Thrifts
<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 (%) (%) (%) (%) (%)
- ------------------------------- ------------ ----------- --------- ----------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp 9.80 9.69 1.28 NA 10.36 NA
REDF RedFed Bancorp Inc. 8.34 8.32 0.35 7.81 9.11 11.94
RELI Reliance Bancshares Inc. 50.09 50.09 0.00 46.47 50.44 70.12
RELY Reliance Bancorp Inc. 8.55 5.99 31.90 5.53 8.94 14.29
RIVR River Valley Bancorp 12.72 12.56 1.43 12.47 13.59 20.85
ROSE TR Financial Corp. 6.27 6.27 0 6.26 6.66 18.61
RSLN Roslyn Bancorp Inc. 17.45 17.38 0.46 12.32 18.12 27.60
RVSB Riverview Bancorp Inc. 22.72 22.11 3.49 17.20 23.09 33.90
SBFL SB of the Finger Lakes (MHC) 8.75 8.75 0.00 8.57 9.22 21.12
SBOS Boston Bancorp (The) 12.34 12.34 0.00 10.06 12.45 26.75
SCBS Southern Community Bancshares 19.89 19.89 0.00 NA 21.02 NA
SCCB S. Carolina Community Bancshrs 20.68 20.68 0.00 18.30 21.33 38.90
SFED SFS Bancorp Inc. 12.29 12.29 0.00 12.28 12.73 23.78
SFFC StateFed Financial Corp. 17.66 17.66 0.00 10.66 17.91 18.94
SFIN Statewide Financial Corp. 9.36 9.35 0.17 8.37 9.76 22.15
SFSB SuburbFed Financial Corp. 6.73 6.71 0.29 5.99 6.93 13.32
SFSL Security First Corp. 9.36 9.23 1.50 8.17 10.12 11.33
SGVB SGV Bancorp Inc. 7.55 7.45 1.43 6.56 7.88 13.72
SHEN First Shenango Bancorp Inc. 12.76 12.76 0.00 10.42 13.63 20.25
SHSB SHS Bancorp Inc. 13.34 13.34 0.00 10.68 13.82 23.70
SIB Staten Island Bancorp Inc. 25.87 25.35 2.68 15.01 26.46 36.60
SISB SIS Bancorp Inc. 7.24 7.24 0.00 7.17 8.55 13.13
SKAN Skaneateles Bancorp Inc. 6.90 6.73 2.70 6.72 7.90 11.31
SKBO First Carnegie Deposit (MHC) 17.19 17.19 0.00 17.19 17.56 57.80
SMBC Southern Missouri Bancorp Inc. 16.60 16.60 0.00 13.75 17.08 24.95
SOBI Sobieski Bancorp Inc. 14.39 14.39 0.00 10.50 14.62 24.10
SOPN First Savings Bancorp Inc. 22.77 22.77 0 22.69 22.97 50.03
SOSA Somerset Savings Bank 6.65 6.65 0.00 6.76 8.07 10.80
SPBC St. Paul Bancorp Inc. 9.17 9.15 0.27 8.61 9.92 17.12
SRN Southern Banc Co. 17.37 17.25 0.83 NA 17.44 NA
SSB Scotland Bancorp Inc. 24.07 24.07 0.00 20.65 24.48 43.59
SSFC South Street Financial Corp. 14.90 14.90 0.00 14.43 15.09 41.97
SSM Stone Street Bancorp Inc. 29.57 29.57 0.00 25.00 30.10 45.54
STFR St. Francis Capital Corp. 8.27 7.44 10.85 7.41 8.65 12.20
STSA Sterling Financial Corp. 5.48 5.09 7.57 7.57 5.96 13.60
SVRN Sovereign Bancorp Inc. 5.43 4.66 14.89 5.24 6.06 12.15
SWBI kouthwest Bancshares Inc. 11.96 11.96 0.00 8.20 12.17 13.82
SWCB Sandwich Bancorp Inc. 8.10 7.84 3.47 7.77 8.89 14.73
SZB SouthFirst Bancshares Inc. 9.67 9.45 2.54 8.69 10.15 20.24
THR Three Rivers Financial Corp. 13.46 13.43 0.34 11.60 13.98 22.42
THRD TF Financial Corp. 8.39 7.10 16.52 7.17 8.73 17.41
TPNZ Tappan Zee Financial Inc. 17.02 17.02 0.00 13.5 17.56 41.7
TRIC Tri-County Bancorp Inc. 15.36 15.36 0.00 13.30 15.82 35.01
TSBK Timberland Bancorp Inc. 8.68 8.68 0.00 NA 9.28 NA
TSBS Peoples Bancorp Inc. (MHC) 17.18 15.78 9.67 15.76 17.72 26.48
TSH Teche Holding Co. 13.54 13.54 0.00 12.21 14.36 22.76
TWIN Twin City Bancorp 12.89 12.89 0.00 11.33 13.01 20.61
UBMT United Financial Corp. 24.02 24.02 0.00 16.10 24.09 42.70
UCBC Union Community Bancorp 16.80 16.80 0.00 16.80 16.99 33.63
UFRM United Federal Savings Bank 7.23 7.23 0.00 7.21 8.16 10.10
USAB USABancshares, Inc. 8.43 8.32 1.51 11.00 8.83 11.20
UTBI United Tennessee Bankshares 10.41 10.41 0.00 9.50 11.34 21.95
VABF Virginia Beach Fed. Financial 7.15 7.15 0.00 6.92 7.89 12.68
WAMU Washington Mutual Inc. 5.47 5.13 6.72 NA 6.17 NA
WAYN Wayne Savings Bancshares (MHC) 9.48 9.48 0.00 9.10 9.86 17.49
WBST Webster Financial Corp. 5.44 4.78 12.80 5.61 6.19 13.41
WCBI Westco Bancorp Inc. 15.38 15.38 0.00 13.43 15.66 29.32
WCFB Webster City Federal SB (MHC) 23.50 23.50 0.00 23.50 23.90 54.01
WEFC Wells Financial Corp. 14.71 14.71 0.00 NA NA NA
WEHO Westwood Homestead Fin. Corp. 22.45 22.45 0.00 21.80 22.65 40.36
WES Westcorp 9.35 9.33 0.24 NA 10.26 NA
WFI Winton Financial Corp. 7.39 7.27 1.84 7.10 7.64 11.10
WFSL Washington Federal Inc. 12.90 12.01 7.77 11.08 13.31 20.27
WHGB WHG Bancshares Corp. 19.65 19.65 0.00 15.82 19.84 31.97
</TABLE>
<PAGE>
Page 14 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of 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>
RCBK Richmond County Financial Corp NA NA NA NA 1.12 NA NA NA
REDF RedFed Bancorp Inc. 1.36 62.87 1.69 20.25 0.86 45.34 1.12 13.43
RELI Reliance Bancshares Inc. 0.00 NM 0.00 0.00 0.57 NM 1.07 2.18
RELY Reliance Bancorp Inc. 1.15 76.23 0.54 6.35 0.88 69.33 0.9 10.92
RIVR River Valley Bancorp 0.79 133.67 0.71 5.56 1.05 122.47 0.80 6.79
ROSE TR Financial Corp. 0.85 84.84 0.48 7.73 0.72 74.9 0.98 15.86
RSLN Roslyn Bancorp Inc. 0.65 370.82 0.18 1.06 2.42 362.05 0.93 7.61
RVSB Riverview Bancorp Inc. 0.27 218.00 0.17 0.73 0.58 218.00 1.40 9.76
SBFL SB of the Finger Lakes (MHC) 0.91 106.00 0.50 5.69 0.96 93.11 0.38 4.03
SBOS Boston Bancorp (The) 1.41 42.86 0.65 5.23 0.61 18.09 1.89 21.12
SCBS Southern Community Bancshares 3.30 52.44 2.17 10.90 1.73 48.64 1.20 5.66
SCCB S. Carolina Community Bancshrs 1.64 49.66 1.53 7.41 0.81 42.40 1.00 3.95
SFED SFS Bancorp Inc. 0.99 58.58 0.82 6.71 0.58 53.36 0.63 5.04
SFFC StateFed Financial Corp. 1.89 17.52 1.74 9.86 0.33 14.72 1.27 7.21
SFIN Statewide Financial Corp. 0.64 132.09 0.33 3.56 0.84 104.03 0.81 8.46
SFSB SuburbFed Financial Corp. 0.51 58.49 0.37 5.53 0.30 42.37 0.66 10.03
SFSL Security First Corp. 0.48 176.82 0.43 4.62 0.84 176.70 1.37 14.73
SGVB SGV Bancorp Inc. 1.15 36.53 1.23 16.25 0.42 26.58 0.33 4.46
SHEN First Shenango Bancorp Inc. 1.07 116.66 1.04 8.11 1.25 83.27 1.15 10.20
SHSB SHS Bancorp Inc. 2.13 34.68 1.42 10.67 0.74 33.94 (0.23) (3.36)
SIB Staten Island Bancorp Inc. 1.94 73.70 0.83 3.20 1.43 71.34 0.70 7.79
SISB SIS Bancorp Inc. 0.76 350.9 0.44 6.12 2.67 279.99 0.68 9.53
SKAN Skaneateles Bancorp Inc. 1.81 65.84 1.89 27.38 1.19 52.90 0.68 9.78
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. 1.07 61.51 0.83 4.98 0.66 58.44 0.85 5.25
SOBI Sobieski Bancorp Inc. 0.11 259.74 0.26 1.82 0.29 87.34 0.61 3.95
SOPN First Savings Bancorp Inc. 0.30 101.34 0.20 0.87 0.30 101.34 1.75 7.43
SOSA Somerset Savings Bank 4.89 37.37 4.86 73.11 1.83 29.23 1.16 18.38
SPBC St. Paul Bancorp Inc. 0.20 533.34 0.17 1.91 1.06 308.50 1.09 12.24
SRN Southern Banc Co. 0.00 NM 0.00 0.00 0.19 NM 0.47 2.76
SSB Scotland Bancorp Inc. 0.00 NM 0.00 0.00 0.57 NM 1.66 5.21
SSFC South Street Financial Corp. 0.30 124.71 0.16 1.06 0.38 118.51 0.85 3.41
SSM Stone Street Bancorp Inc. 0.00 NM 0.00 0.00 0.62 229.34 1.56 4.57
STFR St. Francis Capital Corp. 0.42 190.95 0.21 2.59 0.81 126.18 0.78 9.55
STSA Sterling Financial Corp. 0.45 182.65 0.73 13.34 0.83 65.29 0.56 10.35
SVRN Sovereign Bancorp Inc. 0.81 112.56 0.63 11.52 0.91 94.38 0.58 10.58
SWBI kouthwest Bancshares Inc. 0.25 115.50 0.18 1.52 0.29 115.50 1.09 9.94
SWCB Sandwich Bancorp Inc. 0.63 176.5 0.56 6.95 1.11 140.03 0.98 12.38
SZB SouthFirst Bancshares Inc. 0.00 NM 0.08 0.79 0.78 37.22 0.59 4.51
THR Three Rivers Financial Corp. 1.41 56.61 0.95 7.04 0.80 47.87 0.88 6.45
THRD TF Financial Corp. 0.55 146.82 0.29 3.46 0.80 117.08 0.77 7.39
TPNZ Tappan Zee Financial Inc. 2.56 45.98 1.19 6.99 1.18 39.34 0.84 4.85
TRIC Tri-County Bancorp Inc. 0.00 NM 0.00 0.00 1.01 NM 1.02 6.72
TSBK Timberland Bancorp Inc. 2.87 32.79 3.03 34.97 0.94 19.72 NA NA
TSBS Peoples Bancorp Inc. (MHC) 1.18 72.46 0.78 4.54 0.85 68.34 1.18 6.99
TSH Teche Holding Co. 0.44 219.88 0.38 2.84 0.97 215.27 0.98 7.31
TWIN Twin City Bancorp 0.00 NM 0.08 0.59 0.16 131.58 1.01 7.85
UBMT United Financial Corp. 0.00 NM 0.35 1.44 0.22 15.21 1.41 6.09
UCBC Union Community Bancorp 0.67 32.52 0.59 3.52 0.22 32.52 1.13 6.54
UFRM United Federal Savings Bank 0.97 114.45 0.91 12.62 1.10 88.10 0.64 8.70
USAB USABancshares, Inc. 1.07 70.22 0.57 6.75 0.75 70.22 0.53 4.57
UTBI United Tennessee Bankshares 0.00 NM 0.09 0.89 1.27 123.77 NA NA
VABF Virginia Beach Fed. Financial 0.14 677.24 0.50 6.98 0.95 59.40 0.62 9.13
WAMU Washington Mutual Inc. 0.89 111.49 0.83 15.19 0.99 83.12 0.52 9.21
WAYN Wayne Savings Bancshares (MHC) 0.13 368.58 0.43 4.58 0.46 83.22 0.75 7.99
WBST Webster Financial Corp. 0.96 139.06 0.65 12.00 1.34 114.22 0.53 9.72
WCBI Westco Bancorp Inc. 0.25 147.79 0.19 1.26 0.37 147.79 1.51 9.81
WCFB Webster City Federal SB (MHC) 0.00 NM 0.06 0.26 0.70 652.54 1.45 6.18
WEFC Wells Financial Corp. NA NA NA NA NA NA 1.09 7.67
WEHO Westwood Homestead Fin. Corp. 0.00 NM 0.00 0.00 0.23 171.61 0.66 2.23
WES Westcorp NA NA NA NA 1.81 NA 1.04 11.04
WFI Winton Financial Corp. 0.07 398.08 0.22 2.94 0.29 100.24 1.09 15.13
WFSL Washington Federal Inc. 0.44 126.40 0.60 4.63 0.56 69.21 1.89 15.51
WHGB WHG Bancshares Corp. 1.21 19.59 0.95 4.85 0.24 19.59 0.76 3.61
</TABLE>
<PAGE>
Page 15 of 40
Exhibit 7
Selected Data on all Public Thrifts
<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 (%) (%) (%) (%) (%)
- ------------------------------- ----------- ----------- ---------- ---------- --------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 13.87 13.06 6.65 12.10 14.38 22.60
WRNB Warren Bancorp Inc. 10.79 10.79 0.00 9.21 11.89 12.53
WSB Washington Savings Bank, FSB 8.51 8.51 0.00 8.00 8.97 20.93
WSBI Warwick Community Bancorp 10.17 10.17 0.00 9.76 10.63 19.91
WSFS WSFS Financial Corp. 5.73 5.69 0.64 6.93 7.37 11.05
WSTR WesterFed Financial Corp. 10.40 8.62 18.75 7.83 10.88 13.29
WVFC WVS Financial Corp. 10.66 10.66 0.00 10.78 11.29 22.03
WYNE Wayne Bancorp Inc. 12.57 12.57 0.00 10.33 13.37 23.82
YFCB Yonkers Financial Corp. 13.54 13.54 0.00 11.60 13.89 30.79
YFED York Financial Corp. 8.86 8.86 0.00 7.70 9.52 12.36
--------------------------------------------------------------------------------------------------------
Average 12.66 12.45 2.97 11.03 13.21 22.18
</TABLE>
<PAGE>
Page 15 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of 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. 0.56 118.98 0.44 3.19 0.66 115.19 0.37 2.74
WRNB Warren Bancorp Inc. 0.44 381.43 0.83 7.68 1.68 132.18 2.03 19.53
WSB Washington Savings Bank, FSB NA NA NA NA 0.96 NA 0.88 10.54
WSBI Warwick Community Bancorp 1.02 78.04 0.67 6.63 0.80 67.04 NA NA
WSFS WSFS Financial Corp. 1.75 179.85 1.23 21.48 3.15 117.68 1.11 20.25
WSTR WesterFed Financial Corp. 0.44 164.57 0.29 2.82 0.73 136.97 0.78 7.16
WVFC WVS Financial Corp. 0.36 312.48 0.20 1.91 1.14 312.48 1.31 10.96
WYNE Wayne Bancorp Inc. 1.32 90.76 0.92 7.28 1.20 87.82 0.76 5.63
YFCB Yonkers Financial Corp. 0.96 85.97 0.49 3.63 0.82 71.78 1.05 7.11
YFED York Financial Corp. 0.08 921.36 1.01 11.41 0.75 29.20 0.95 11.22
-------------------------------------------------------------------------------------------------------------
Average 0.78 180.78 0.66 7.11 0.89 131.21 0.96 8.99
</TABLE>
<PAGE>
Page 16 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Capital as of The Most Recent Quarter
----------------------------------------------------- -------------
Tangible Intangibl Regulato Equity + Total Capital/
Equity/ Equity/ Assets/ Core Cap/ Reserves/ Risk Adjusted
Assets Tang Assets Equity Assets Assets Assets
Ticker Short Name (%) (%) (%) (%) (%)
- ------------------------------- --------------------- --------- -------- --------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
CSBF CSB Financial Group Inc. 23.10 22.04 5.87 21.41 23.46 48.40
FLKY First Lancaster Bancshares 28.50 28.50 0.00 27.40 28.81 39.80
HBBI Home Building Bancorp 14.06 14.06 0.00 10.77 14.26 21.56
HWEN Home Finanical Bancorp 16.99 16.99 0.00 14.40 17.62 25.50
LONF London Financial Corp. 13.76 13.76 0.00 16.00 14.24 31.48
MBSP Mitchell Bancorp Inc. 40.13 40.13 0.00 32.30 40.65 57.00
NSLB NS&L Bancorp Inc. 19.74 19.62 0.73 15.70 19.82 34.30
PWBK Pennwood Bancorp Inc. 17.98 17.98 0.00 17.98 18.50 32.39
KELI Reliance Bancshares Inc. 50.09 50.09 0.00 46.47 50.44 70.12
SCCB S. Carolina Community Bancshrs 20.68 20.68 0.00 18.30 21.33 38.90
Average 24.50 24.39 0.66 22.07 24.91 39.95
Median 20.21 20.15 0.00 18.14 20.58 36.60
Maximum 50.09 50.09 5.87 46.47 50.44 70.12
Minimum 13.76 13.76 0.00 10.77 14.24 21.56
Carnegie Savings Bank 7.00 7.03 0.00 7.03 7.68 15.45
Variance to the Comparable Median (13.21)(13.12) 0.00 (11.11) (12.89) (21.15)
</TABLE>
<PAGE>
Page 16 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Asset Quality as of The Most Recent Quarter Profitability as of 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>
CSBF CSB Financial Group Inc. NA NA NA NA 0.63 52.91 0.49 1.98
FLKY First Lancaster Bancshares 1.55 21.68 2.25 7.88 0.34 8.62 1.17 3.64
HBBI Home Building Bancorp 0.99 29.02 0.67 4.79 0.29 29.02 0.75 5.70
HWEN Home Finanical Bancorp 1.23 64.10 1.63 9.61 0.79 38.73 0.81 4.55
LONF London Financial Corp. 0.26 238.16 0.20 1.46 0.62 238.16 1.08 5.62
MBSP Mitchell Bancorp Inc. 1.88 34.31 1.77 4.41 0.64 29.42 1.51 3.62
NSLB NS&L Bancorp Inc. 0.02 612.50 0.01 0.07 0.14 36.57 0.72 3.63
PWBK Pennwood Bancorp Inc. 1.07 74.85 0.74 4.13 0.80 34.66 0.96 5.14
KELI Reliance Bancshares Inc. 0.00 NM 0.00 0.00 0.57 NM 1.07 2.18
SCCB S. Carolina Community Bancshrs 1.64 49.66 1.53 7.41 0.81 42.40 1.00 3.95
- ------------------------------------------------------------------------------------------------------------------------------------
Average 0.96 140.54 0.98 4.42 0.56 56.72 0.96 4.00
Median 1.07 56.88 0.74 4.41 0.63 36.57 0.98 3.80
Maximum 1.88 612.50 2.25 9.61 0.81 238.16 1.51 5.70
Minimum 0.00 21.68 0.00 0.00 0.14 8.62 0.49 1.98
Carnegie Savings Bank 0.44 273.81 3.12 44.62 1.20 22.03 (0.33) (4.28)
Variance to the Comparable Median (0.63)216.93 2.38 40.21 0.57 (14.54) (1.31) (8.08)
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 2.63 6.91 4.50 2.41 1.02 2.27 62.36 46.37
%CCMD Chevy Chase Bank, FSB 3.89 7.14 3.89 3.25 5.86 7.60 79.02 41.20
AABC Access Anytime Bancorp Inc. 2.95 6.83 3.97 2.86 0.66 3.29 93.27 91.71
AADV Advantage Bancorp Inc. 3.18 7.54 4.49 3.05 0.66 2.13 54.74 44.91
ABBK Abington Bancorp Inc. 3.39 7.24 4.01 3.23 0.82 2.67 63.80 54.63
ABCL Alliance Bancorp Inc. 2.92 7.13 4.32 2.81 1.20 2.62 64.89 49.95
ABCW Anchor BanCorp Wisconsin 3.10 7.66 4.68 2.97 0.68 2.07 57.34 47.55
AFBC Advance Financial Bancorp 3.88 7.70 3.92 3.78 0.33 2.72 66.71 63.79
AFCB Affiliated Community Bancorp 3.35 7.49 4.23 3.26 0.16 1.65 48.43 45.96
AFED AFSALA Bancorp Inc. 3.56 7.00 3.61 3.39 0.24 2.30 63.33 60.73
AHCI Ambanc Holding Co. 3.42 7.27 3.97 3.31 0.22 2.82 68.59 66.48
AHM H.F. Ahmanson & Co. 2.69 7.12 4.54 2.58 0.53 1.75 49.55 39.19
ALBC Albion Banc Corp. 3.55 7.54 4.14 3.39 0.47 2.96 78.16 75.17
ALBK ALBANK Financial Corp. 3.96 7.39 3.64 3.75 0.38 2.32 52.70 47.95
AMFC AMB Financial Corp. 3.69 7.69 4.08 3.61 0.57 2.89 69.04 64.14
ANA Acadiana Bancshares Inc. 3.64 7.57 4.03 3.54 0.39 2.34 60.19 55.81
ANDB Andover Bancorp Inc. 3.22 7.28 4.17 3.10 0.43 1.84 49.95 43.09
ANE Alliance Bncp of New England 3.57 7.14 3.74 3.40 0.49 2.80 67.15 62.41
ASBI Ameriana Bancorp 3.16 7.38 4.35 3.03 0.56 2.25 62.77 55.89
ASBP ASB Financial Corp. 3.28 7.58 4.35 3.23 0.26 2.12 60.85 57.75
ASFC Astoria Financial Corp. 2.70 6.98 4.39 2.59 0.18 1.40 45.20 41.32
ATSB AmTrust Capital Corp. 2.82 7.04 4.35 2.69 0.55 2.87 88.31 85.91
AVND Avondale Financial Corp. 4.50 8.80 4.62 4.19 0.96 3.73 73.25 67.14
BANC BankAtlantic Bancorp Inc. 3.75 7.63 4.17 3.46 0.82 2.96 67.01 59.18
BDJI First Federal Bancorp. 3.30 7.27 4.13 3.13 0.53 2.54 68.86 63.59
BFD BostonFed Bancorp Inc. 3.40 7.23 3.95 3.29 0.39 2.28 65.01 60.83
BFFC Big Foot Financial Corp. NA NA NA NA NA NA NA NA
BFSB Bedford Bancshares Inc. 4.03 7.75 3.90 3.86 0.45 2.31 53.74 48.37
BKC American Bank of Connecticut 3.32 7.23 4.03 3.20 0.57 1.81 45.02 35.13
BKCT Bancorp Connecticut Inc. 3.80 7.54 3.83 3.71 0.31 2.06 50.86 46.73
BKUNA BankUnited Financial Corp. 2.00 7.17 5.25 1.93 0.17 1.38 63.22 59.91
BNKU Bank United Corp. 2.48 7.27 4.94 2.34 0.49 1.60 55.49 46.09
BPLS Bank Plus Corp. 2.28 6.99 4.77 2.22 0.34 2.02 71.75 67.39
BTHL Bethel Bancorp 4.47 8.57 4.34 4.24 0.80 3.89 74.42 69.60
BVCC Bay View Capital Corp. 2.86 7.74 4.95 2.79 0.38 2.11 63.65 58.72
BWFC Bank West Financial Corp. 3.06 7.32 4.43 2.89 0.57 2.60 75.10 70.20
BYFC Broadway Financial Corp. 4.47 7.51 3.18 4.33 0.39 3.99 80.80 79.06
CAFI Camco Financial Corp. 3.56 7.67 4.29 3.38 0.45 2.37 61.18 56.01
CAPS Capital Savings Bancorp Inc. 3.33 7.63 4.41 3.23 0.61 2.22 57.96 50.01
CASB Cascade Financial Corp. 3.06 7.92 4.96 2.95 0.36 2.26 67.75 63.83
CASH First Midwest Financial Inc. 3.26 7.69 4.55 3.15 0.37 1.96 52.84 47.23
CATB Catskill Financial Corp. 4.14 7.29 3.23 4.06 0.14 1.91 46.03 44.13
CBCI Calumet Bancorp Inc. 3.92 7.87 4.24 3.63 0.17 1.23 50.67 48.35
CBES CBES Bancorp Inc. 4.51 8.21 3.85 4.36 0.44 3.14 64.32 60.71
CBK Citizens First Financial Corp 3.36 7.59 4.38 3.20 0.39 2.59 71.92 68.54
CBSA Coastal Bancorp Inc. 2.02 6.93 4.97 1.96 0.21 1.45 62.24 58.16
CBSB Charter Financial Inc. 3.82 7.67 4.05 3.62 0.61 2.30 50.32 41.87
CCFH CCF Holding Co. 4.03 7.44 3.66 3.78 0.77 4.68 103.01 103.62
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. 3.77 7.18 3.53 3.65 0.04 1.21 33.21 32.49
CENF CENFED Financial Corp. 2.37 7.28 4.98 2.30 0.36 1.50 54.23 47.02
CFB Commercial Federal Corp. 2.58 7.41 4.96 2.45 0.87 1.73 49.11 31.01
CFBC Community First Banking Co. 4.20 8.06 4.05 4.01 0.97 3.90 78.00 72.68
CFCP Coastal Financial Corp. 3.96 7.89 4.18 3.71 0.70 2.62 58.94 51.19
CFFC Community Financial Corp. 3.90 7.79 4.07 3.72 0.40 2.16 52.33 47.23
CFNC Carolina Fincorp Inc. 4.06 7.40 3.50 3.90 0.47 2.50 57.15 51.97
CFSB CFSB Bancorp Inc. 3.06 7.40 4.39 3.00 0.63 1.87 51.34 41.12
CFTP Community Federal Bancorp 3.53 6.92 3.48 3.44 0.12 1.49 42.11 40.17
CFX CFX Corp. 3.95 7.43 3.77 3.66 0.68 2.77 62.72 55.84
CIBI Community Investors Bancorp 3.46 7.71 4.32 3.39 0.18 1.98 54.22 51.84
CKFB CKF Bancorp Inc. 3.75 7.46 3.80 3.66 0.10 1.67 42.50 40.92
CLAS Classic Bancshares Inc. 3.85 7.25 3.62 3.62 0.35 2.98 71.98 69.30
CMRN Cameron Financial Corp 3.94 7.96 4.19 3.77 0.11 1.91 49.12 47.69
CMSB Commonwealth Bancorp Inc. 3.36 6.93 3.79 3.14 0.62 2.95 71.15 65.50
</TABLE>
<PAGE>
Page 17 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- -------- --------- ------- ------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank 83.69 79.23 89.33 NA NA NA NA NA NA
%CCMD Chevy Chase Bank, FSB (0.26) (25.07) 18.75 NA NA NA NA NA NA
AABC Access Anytime Bancorp Inc. (3.01) 28.97 (6.67) 12.68 7.598 8.088 5.147 7.51 7.51
AADV Advantage Bancorp Inc. (0.46) (3.60) (4.31) 222.86 70.875 70.875 31.750 31.79 29.74
ABBK Abington Bancorp Inc. 9.25 10.74 8.15 75.47 21.000 22.000 9.500 9.99 9.09
ABCL Alliance Bancorp Inc. 104.18 57.49 120.93 216.60 26.500 28.375 16.500 16.32 16.13
ABCW Anchor BanCorp Wisconsin 3.85 7.04 3.84 368.86 36.375 37.000 17.750 14.25 14.02
AFBC Advance Financial Bancorp 7.81 12.70 6.71 22.23 17.375 17.875 12.750 15.16 15.16
AFCB Affiliated Community Bancorp 11.90 9.50 11.74 240.63 37.750 37.750 17.300 17.61 17.52
AFED AFSALA Bancorp Inc. 7.05 5.61 8.29 26.71 19.250 19.500 12.000 16.35 16.35
AHCI Ambanc Holding Co. 6.61 1.18 10.22 79.13 16.125 16.625 10.000 13.98 13.98
AHM H.F. Ahmanson & Co. (6.46) (4.09) (7.21) 6,980.01 66.938 66.938 32.000 20.57 17.56
ALBC Albion Banc Corp. 18.29 7.54 16.47 7.97 8.583 8.583 5.500 8.08 8.08
ALBK ALBANK Financial Corp. 16.46 11.29 15.62 633.25 51.438 51.438 30.500 27.86 21.64
AMFC AMB Financial Corp. 16.14 14.44 18.83 16.63 15.875 17.750 12.750 15.33 15.33
ANA Acadiana Bancshares Inc. 3.37 15.12 (3.16) 58.12 22.250 22.250 13.625 17.21 17.21
ANDB Andover Bancorp Inc. 9.79 12.85 14.88 205.43 40.250 42.000 25.000 20.72 20.72
ANE Alliance Bncp of New England 6.39 7.47 7.84 32.93 16.500 18.000 8.719 11.49 11.17
ASBI Ameriana Bancorp (1.67) 4.24 5.44 68.67 20.250 22.000 14.000 13.63 13.62
ASBP ASB Financial Corp. 1.21 11.79 3.89 23.72 13.250 13.875 11.500 10.59 10.59
ASFC Astoria Financial Corp. 44.76 63.87 37.84 1,547.32 55.750 58.125 34.750 32.42 22.56
ATSB AmTrust Capital Corp. (4.31) (5.50) (7.14) 7.34 13.875 14.500 10.000 14.66 14.51
AVND Avondale Financial Corp. (8.96) (24.12) 20.10 50.27 16.250 18.875 12.750 13.83 13.83
BANC BankAtlantic Bancorp Inc. 17.61 13.55 (3.77) 368.15 16.750 17.125 12.125 8.04 7.02
BDJI First Federal Bancorp. 8.30 7.67 0.75 19.97 22.000 22.000 11.667 12.11 12.11
BFD BostonFed Bancorp Inc. 18.78 17.97 44.54 120.07 21.875 22.313 14.375 15.72 15.15
BFFC Big Foot Financial Corp. NA NA NA 59.68 21.000 NA NA 15.09 15.09
BFSB Bedford Bancshares Inc. 5.64 5.49 7.38 33.42 34.000 34.500 17.500 18.28 18.28
BKC American Bank of Connecticut 14.43 1.60 14.47 119.82 48.750 49.500 27.375 24.82 24.00
BKCT Bancorp Connecticut Inc. 5.63 3.81 1.85 103.11 21.000 25.000 10.750 9.22 9.22
BKUNA BankUnited Financial Corp. 127.89 154.94 64.45 198.93 15.406 15.625 8.500 9.13 8.11
BNKU Bank United Corp. 13.24 21.31 5.81 1,443.54 48.938 49.875 24.250 19.39 18.90
BPLS Bank Plus Corp. 25.15 4.53 15.86 280.82 12.625 13.750 9.625 9.36 8.52
BTHL Bethel Bancorp 4.55 0.81 (1.91) 15.15 13.250 13.250 10.750 13.71 11.51
BVCC Bay View Capital Corp. (1.63) (3.68) (4.92) 719.02 36.250 36.250 20.625 14.38 11.94
BWFC Bank West Financial Corp. 18.43 16.81 12.42 38.37 16.125 17.500 7.000 8.83 8.83
BYFC Broadway Financial Corp. 6.39 8.27 6.00 11.01 11.500 11.500 9.000 14.77 14.77
CAFI Camco Financial Corp. 10.89 14.78 6.76 85.25 25.500 27.000 14.048 15.22 14.12
CAPS Capital Savings Bancorp Inc. 2.77 6.22 5.55 43.73 25.250 25.250 12.750 12.08 12.08
CASB Cascade Financial Corp. 21.40 34.68 33.19 50.92 13.250 16.800 11.600 8.63 8.63
CASH First Midwest Financial Inc. 10.19 3.58 11.49 61.91 22.500 22.625 15.000 16.39 14.62
CATB Catskill Financial Corp. 6.90 1.08 4.06 82.19 18.875 19.125 13.750 15.48 15.48
CBCI Calumet Bancorp Inc. (4.62) (0.98) (2.48) 116.24 33.250 34.000 21.667 25.98 25.98
CBES CBES Bancorp Inc. 21.22 20.33 23.63 26.02 22.250 22.500 14.000 17.08 17.08
CBK Citizens First Financial Corp 4.57 8.44 (1.73) 49.14 20.250 20.250 13.875 16.60 16.60
CBSA Coastal Bancorp Inc. 1.23 2.58 4.90 165.29 34.875 34.875 22.375 20.67 17.57
CBSB Charter Financial Inc. 0.61 4.00 5.38 136.30 25.125 25.500 12.500 14.24 12.75
CCFH CCF Holding Co. 36.20 72.66 39.77 19.40 15.227 15.568 11.762 12.92 12.92
CEBK Central Co-operative Bank 13.20 13.49 6.48 63.37 28.500 30.250 15.875 18.35 16.59
CENB Century Bancorp Inc. 4.25 14.69 3.76 38.19 84.750 85.000 62.000 75.70 75.70
CENF CENFED Financial Corp. 6.65 3.78 3.17 247.18 35.938 36.875 21.818 21.51 21.48
CFB Commercial Federal Corp. 4.68 4.64 (3.90) 1,385.45 35.563 36.500 20.750 14.06 12.68
CFBC Community First Banking Co. NA NA NA 109.82 37.750 37.750 31.875 31.49 31.07
CFCP Coastal Financial Corp. 24.21 9.75 6.74 96.99 24.500 27.750 14.438 7.21 7.21
CFFC Community Financial Corp. 9.73 8.31 16.53 37.27 27.625 27.625 21.000 19.51 19.51
CFNC Carolina Fincorp Inc. 6.99 14.94 9.24 32.63 18.500 18.500 13.313 14.06 14.06
CFSB CFSB Bancorp Inc. 2.78 5.16 1.60 222.52 26.250 26.250 11.515 8.88 8.88
CFTP Community Federal Bancorp 10.99 9.60 2.10 87.95 20.250 21.000 16.375 14.73 14.73
CFX CFX Corp. 21.29 28.62 10.9 734.17 30.625 30.625 15.125 10.21 9.85
CIBI Community Investors Bancorp 0.09 12.57 6.96 15.68 16.156 17.000 10.333 12.31 12.31
CKFB CKF Bancorp Inc. 4.77 5.12 0.98 18.42 18.500 20.500 17.500 17.14 17.14
CLAS Classic Bancshares Inc. 3.45 11.53 2.42 26.65 16.750 17.250 11.625 15.38 13.12
CMRN Cameron Financial Corp 10.10 12.31 5.63 50.28 20.500 21.000 15.500 17.66 17.66
CMSB Commonwealth Bancorp Inc. 7.01 14.54 4.12 326.97 19.875 21.500 13.500 13.22 10.44
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 3.54 7.27 3.93 3.34 0.58 2.71 69.13 63.76
CNIT CENIT Bancorp Inc. 3.25 7.23 4.17 3.06 0.58 2.35 62.48 55.39
CNSB CNS Bancorp Inc. 3.57 7.17 3.71 3.46 0.17 2.22 61.29 59.37
CNY Carver Bancorp Inc. 3.13 6.48 3.52 2.96 0.33 2.45 72.86 69.86
COFI Charter One Financial 2.93 7.38 4.55 2.82 0.71 1.66 46.26 32.79
CONE Conestoga Bancorp, Inc. 3.13 6.65 3.75 2.89 0.17 1.93 63.13 60.99
COOP Cooperative Bankshares Inc. 2.90 7.08 4.27 2.81 0.16 1.96 65.73 63.83
CRSB Crusader Holding Corp. NA NA NA NA NA NA NA NA
CRZY Crazy Woman Creek Bancorp 3.58 7.35 3.83 3.53 0.14 1.72 47.02 44.92
CSBF CSB Financial Group Inc. 3.35 6.65 3.41 3.24 0.22 2.73 75.34 73.70
CTZN CitFed Bancorp Inc. 2.40 6.93 4.66 2.27 1.06 1.96 55.38 34.52
CVAL Chester Valley Bancorp Inc. 3.80 7.70 3.98 3.72 0.39 2.58 62.82 58.91
DCBI Delphos Citizens Bancorp Inc. 3.98 7.43 3.52 3.91 0.25 1.71 41.11 37.30
DIBK Dime Financial Corp. 3.33 7.30 4.03 3.27 0.24 1.56 42.98 38.86
DIME Dime Community Bancorp Inc. 3.88 7.33 3.64 3.69 0.26 2.07 47.09 43.38
DME Dime Bancorp Inc. 2.51 6.85 4.46 2.39 0.51 1.69 56.68 47.40
DNFC D & N Financial Corp. 3.08 7.73 4.72 3.01 0.41 2.12 61.90 56.72
DSL Downey Financial Corp. 2.88 7.34 4.65 2.69 0.32 1.52 57.73 52.72
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. NA NA NA NA NA NA NA NA
EFBI Enterprise Federal Bancorp 2.80 7.53 4.79 2.74 0.05 1.58 56.14 55.27
EGFC Eagle Financial Corp. 3.20 7.02 3.97 3.05 0.35 2.02 51.89 46.34
EGLB Eagle BancGroup Inc. 2.53 7.17 4.72 2.45 0.19 2.18 83.01 81.66
EMLD Emerald Financial Corp. 2.87 7.55 4.75 2.80 0.31 1.57 49.63 44.01
EQSB Equitable Federal Savings Bank 2.48 7.31 4.90 2.41 0.50 1.68 59.44 50.94
ESBK Elmira Savings Bank (The) 3.74 7.60 4.04 3.56 0.76 3.49 79.74 75.39
ESX Essex Bancorp Inc. 2.99 7.80 4.97 2.84 1.34 4.12 93.36 90.23
ETFS East Texas Financial Services 3.03 6.95 3.98 2.97 0.19 2.25 71.07 69.18
FAB FIRSTFED AMERICA BANCORP INC. 2.98 7.12 4.26 2.86 0.47 2.06 61.60 55.32
FBBC First Bell Bancorp Inc. 2.45 7.03 4.62 2.41 0.08 0.72 28.99 26.66
FBCI Fidelity Bancorp Inc. 3.00 7.36 4.42 2.94 0.24 1.86 58.28 54.91
FBCV 1ST Bancorp 2.59 7.52 5.04 2.48 0.43 2.29 75.23 70.91
FBER 1st Bergen Bancorp 3.44 7.16 3.83 3.33 0.11 2.10 60.88 59.63
FBHC Fort Bend Holding Corp. 3.24 6.97 4.00 2.97 1.83 3.98 84.03 74.22
FBNW FirstBank Corp. 4.37 8.20 4.08 4.11 0.83 3.86 78.20 73.82
FBSI First Bancshares Inc. 3.57 7.67 4.26 3.40 0.31 1.94 53.39 49.19
FCB Falmouth Bancorp Inc. 4.12 7.08 3.07 4.00 0.17 2.85 68.26 66.93
FCBF FCB Financial Corp. 3.46 7.74 4.34 3.40 0.38 1.82 48.07 42.34
FCME First Coastal Corp. 4.18 7.83 3.93 3.90 0.42 3.32 75.23 72.57
FDEF First Defiance Financial 4.20 7.82 3.81 4.01 0.25 2.51 57.91 55.28
FED FirstFed Financial Corp. 2.39 7.25 4.95 2.30 0.23 1.07 41.43 35.55
FESX First Essex Bancorp Inc. 3.31 7.59 4.42 3.18 0.25 2.01 55.12 51.52
FFBA First Colorado Bancorp Inc. 3.29 7.09 3.94 3.15 0.36 1.58 46.71 40.57
FFBH First Federal Bancshares of AR 3.21 7.59 4.43 3.16 0.25 1.83 54.29 50.64
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. 3.76 7.67 4.24 3.44 0.46 2.37 59.82 54.48
FFCH First Financial Holdings Inc. 3.11 7.54 4.53 3.01 0.73 2.23 59.43 49.60
FFDB FirstFed Bancorp Inc. 3.62 7.61 4.12 3.49 0.50 2.17 59.64 53.84
FFDF FFD Financial Corp. 3.35 6.98 3.68 3.31 0.07 1.95 57.77 56.88
FFED Fidelity Federal Bancorp 2.77 8.01 5.42 2.59 1.38 2.92 73.56 59.45
FFES First Federal of East Hartford 2.36 6.77 4.48 2.29 0.16 1.39 56.76 53.78
FFFC FFVA Financial Corp. 3.84 7.85 4.15 3.70 0.25 1.77 44.22 40.50
FFFD North Central Bancshares Inc. 4.06 7.69 3.75 3.94 1.09 2.17 43.21 27.56
FFFL Fidelity Bankshares Inc. (MHC) 3.36 7.29 4.10 3.18 0.41 2.56 70.69 66.90
FFHH FSF Financial Corp. 3.01 7.41 4.49 2.93 0.40 1.92 57.76 51.97
FFHS First Franklin Corp. 2.69 7.22 4.60 2.62 0.18 1.75 61.90 59.34
FFIC Flushing Financial Corp. 3.62 7.18 3.73 3.44 0.23 2.07 55.79 52.81
FFKY First Federal Financial Corp. 4.17 7.92 4.01 3.92 0.62 2.07 44.23 35.43
FFLC FFLC Bancorp Inc. 3.53 7.50 4.11 3.39 0.24 1.99 54.76 51.55
FFOH Fidelity Financial of Ohio 3.11 7.32 4.33 2.99 0.21 1.80 51.96 48.62
FFPB First Palm Beach Bancorp Inc. 2.80 7.36 4.69 2.68 0.39 2.13 69.50 65.04
FFSL First Independence Corp. 2.85 7.40 4.61 2.78 0.23 1.93 64.77 61.80
</TABLE>
<PAGE>
Page 18 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- -------- --------- ------- ------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 9.06 11.32 9.09 185.33 36.250 36.875 16.375 16.22 16.22
CNIT CENIT Bancorp Inc. 2.30 26.20 3.38 119.65 61.750 61.750 38.500 31.01 28.40
CNSB CNS Bancorp Inc. (1.50) 17.14 (0.73) 30.17 17.750 18.500 13.000 14.34 14.34
CNY Carver Bancorp Inc. 11.72 136.40 2.18 35.29 16.250 17.125 8.375 15.23 14.65
COFI Charter One Financial 10.48 25.49 0.09 3,886.80 63.125 64.000 39.167 21.56 20.14
CONE Conestoga Bancorp, Inc. 11.04 (0.08) 13.23 NA 20.625 20.780 14.375 17.58 17.58
COOP Cooperative Bankshares Inc. 8.15 8.88 3.79 59.69 24.500 25.000 10.000 9.48 9.48
CRSB Crusader Holding Corp. NA NA NA 52.06 NA NA NA 1.65 1.65
CRZY Crazy Woman Creek Bancorp 15.56 7.73 4.95 16.35 15.000 15.688 11.875 15.04 15.04
CSBF CSB Financial Group Inc. 0.16 (2.11) 2.67 11.44 13.500 13.500 10.000 13.09 12.32
CTZN CitFed Bancorp Inc. 18.58 10.90 15.29 674.59 39.000 40.125 21.000 16.14 14.74
CVAL Chester Valley Bancorp Inc. 12.22 9.67 9.86 79.48 29.250 29.250 14.095 13.24 13.24
DCBI Delphos Citizens Bancorp Inc. 1.07 17.19 2.46 41.47 20.750 20.750 12.000 14.83 14.83
DIBK Dime Financial Corp. 27.58 (6.55) 31.63 156.21 30.500 32.000 17.250 15.35 14.95
DIME Dime Community Bancorp Inc. 20.78 32.36 8.32 300.07 23.750 25.500 14.500 14.97 12.94
DME Dime Bancorp Inc. 15.78 36.61 7.70 3,483.53 30.250 30.250 14.625 11.30 9.27
DNFC D & N Financial Corp. 23.23 22.92 8.20 238.85 26.500 26.750 14.886 10.78 10.68
DSL Downey Financial Corp. 12.27 13.84 16.70 792.64 28.438 29.000 18.095 16.08 NA
EBI Equality Bancorp Inc. 13.17 12.06 (4.12) 39.31 14.500 15.375 12.000 10.31 10.31
EBSI Eagle Bancshares 15.84 21.55 11.98 121.52 22.000 22.000 14.750 12.84 12.84
EFBC Empire Federal Bancorp Inc. NA NA NA 45.04 17.625 NA NA 15.51 15.51
EFBI Enterprise Federal Bancorp 22.27 20.89 2.78 61.56 31.500 31.500 14.125 16.31 16.30
EGFC Eagle Financial Corp. 47.95 35.41 28.36 338.71 55.000 55.000 26.750 23.39 18.96
EGLB Eagle BancGroup Inc. (0.89) 14.67 (1.90) 24.14 18.875 20.000 14.500 17.24 17.24
EMLD Emerald Financial Corp. 6.43 10.17 5.52 109.06 22.125 22.125 10.625 9.56 9.43
EQSB Equitable Federal Savings Bank 12.23 10.62 7.95 36.20 26.500 26.500 14.250 13.77 13.77
ESBK Elmira Savings Bank (The) 3.43 4.49 1.46 21.88 28.333 28.333 14.048 20.07 19.54
ESX Essex Bancorp Inc. 11.89 15.71 16.74 5.49 4.750 7.938 1.000 0.03 (0.16)
ETFS East Texas Financial Services 5.87 19.71 (0.87) 23.48 23.750 23.750 16.875 20.44 20.44
FAB FIRSTFED AMERICA BANCORP INC. 19.35 13.47 2.49 173.05 21.875 22.125 13.625 16.01 16.01
FBBC First Bell Bancorp Inc. 2.97 9.15 2.30 122.89 19.000 19.375 13.250 11.21 11.21
FBCI Fidelity Bancorp Inc. 1.15 7.41 0.76 69.67 25.625 25.750 16.875 18.22 18.19
FBCV 1ST Bancorp (2.21) 3.81 (0.16) 29.69 29.286 29.286 18.095 21.08 20.71
FBER 1st Bergen Bancorp 17.55 3.09 6.50 55.50 19.125 19.500 11.375 13.71 13.71
FBHC Fort Bend Holding Corp. 8.69 27.04 7.22 35.59 21.750 24.000 11.000 12.28 11.51
FBNW FirstBank Corp. 37.61 29.12 5.76 39.18 18.875 19.000 15.500 16.19 16.19
FBSI First Bancshares Inc. 2.87 9.85 7.03 34.97 15.625 15.625 8.250 10.64 10.64
FCB Falmouth Bancorp Inc. 10.22 36.78 10.95 32.37 20.500 22.000 13.125 16.06 16.06
FCBF FCB Financial Corp. 93.62 78.23 106.79 123.60 29.500 30.000 18.500 18.97 18.97
FCME First Coastal Corp. 8.90 7.49 (1.44) 19.20 13.125 13.188 6.625 10.66 10.66
FDEF First Defiance Financial 6.68 6.33 3.35 130.05 16.000 16.250 11.813 12.53 12.53
FED FirstFed Financial Corp. 0.39 3.36 (0.71) 422.18 38.750 39.500 21.500 21.04 20.86
FESX First Essex Bancorp Inc. 12.21 1.99 7.72 182.76 23.250 23.250 13.375 12.08 10.62
FFBA First Colorado Bancorp Inc. 2.72 9.76 4.06 483.24 23.75 26.125 16 12.45 12.2
FFBH First Federal Bancshares of AR 7.36 10.13 7.00 122.40 21.313 21.625 15.000 16.64 16.64
FFBI First Financial Bancorp Inc. (12.52) (25.95) 2.60 10.18 21.000 21.000 15.500 18.37 18.37
FFBS FFBS BanCorp Inc. 7.34 11.76 6.52 34.98 21.250 26.000 21.000 15.07 15.07
FFBZ First Federal Bancorp Inc. 10.46 10.39 0.33 35.44 21.125 21.500 16.000 9.14 9.13
FFCH First Financial Holdings Inc. 13.34 8.77 6.36 348.81 53.125 53.125 22.250 17.08 17.08
FFDB FirstFed Bancorp Inc. 1.30 (7.33) 2.19 27.43 21.625 22.750 12.500 15.00 13.77
FFDF FFD Financial Corp. 7.20 25.22 7.93 29.98 18.000 19.500 13.000 15.38 15.38
FFED Fidelity Federal Bancorp (17.05) (16.22) (14.09) 30.50 10.313 10.500 7.500 5.02 5.02
FFES First Federal of East Hartford 2.52 14.12 2.95 108.23 37.250 37.750 22.875 24.76 24.76
FFFC FFVA Financial Corp. 8.59 1.80 4.61 174.07 39.125 40.000 20.000 18.02 17.68
FFFD North Central Bancshares Inc. 9.29 15.27 8.79 71.86 19.875 20.000 13.500 15.43 15.43
FFFL Fidelity Bankshares Inc. (MHC) 21.97 19.91 19.33 217.12 28.500 28.500 15.000 12.65 12.57
FFHH FSF Financial Corp. 11.17 21.04 5.88 63.01 20.938 21.000 14.750 16.34 16.34
FFHS First Franklin Corp. 3.69 1.79 3.88 31.89 31.250 31.250 16.000 17.81 17.72
FFIC Flushing Financial Corp. 40.39 55.81 12.53 188.75 23.875 24.000 17.375 17.35 16.67
FFKY First Federal Financial Corp. 5.79 8.05 8.76 91.86 22.750 23.500 17.750 12.81 12.11
FFLC FFLC Bancorp Inc. 15.53 38.44 11.58 73.01 21.750 23.500 12.300 13.74 13.74
FFOH Fidelity Financial of Ohio 7.04 10.15 5.85 97.17 15.500 16.375 11.500 11.49 10.13
FFPB First Palm Beach Bancorp Inc. 21.16 10.26 6.96 193.34 43.125 43.125 23.250 22.95 22.44
FFSL First Independence Corp. 4.37 16.52 8.53 14.07 14.000 15.000 10.250 11.91 11.91
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFSX First Fed SB of Siouxland(MHC) 3.08 7.41 4.47 2.94 0.54 2.30 66.05 59.83
FFWC FFW Corp. 3.28 7.71 4.53 3.17 0.45 1.97 53.11 46.47
FFWD Wood Bancorp Inc. 4.30 8.12 3.96 4.16 0.26 2.30 52.30 49.37
FFYF FFY Financial Corp. 3.75 7.81 4.16 3.65 0.17 1.82 47.63 45.22
FGHC First Georgia Holding Inc. 4.25 8.47 4.54 3.93 0.87 3.15 64.45 56.58
FIBC Financial Bancorp Inc. 3.80 7.32 3.71 3.61 0.23 1.96 51.62 48.49
FISB First Indiana Corp. 4.36 8.43 4.26 4.17 0.79 2.66 54.02 45.32
FKFS First Keystone Financial 3.34 7.30 4.08 3.22 0.30 2.24 63.66 60.22
FKKY Frankfort First Bancorp Inc. 3.35 7.24 3.97 3.28 0.04 1.69 51.02 50.42
FLAG FLAG Financial Corp. 3.67 7.40 4.03 3.37 1.24 3.32 71.24 60.66
FLFC First Liberty Financial Corp. 3.92 7.88 4.30 3.58 0.86 2.74 58.82 48.91
FLGS Flagstar Bancorp Inc. 2.71 6.84 4.40 2.44 4.29 4.10 55.37 (23.12
FLKY First Lancaster Bancshares 4.76 8.34 3.65 4.69 0.00 2.71 57.70 57.70
FMBD First Mutual Bancorp Inc. 3.00 6.96 4.18 2.78 0.36 2.72 81.13 78.72
FMCO FMS Financial Corp. 3.77 7.29 3.69 3.60 0.46 2.46 58.12 52.73
FMSB First Mutual Savings Bank 3.78 8.46 4.78 3.67 0.36 2.25 55.77 51.39
FNGB First Northern Capital Corp. 3.26 7.28 4.14 3.14 0.44 2.09 58.32 52.45
FOBC Fed One Bancorp 3.40 7.26 3.97 3.29 0.18 2.00 55.55 53.11
FPRY First Financial Bancorp 3.13 7.64 4.68 2.95 0.50 2.71 77.74 74.01
FSBI Fidelity Bancorp Inc. 2.99 7.16 4.24 2.91 0.23 1.88 59.50 56.26
FSFF First SecurityFed Financial NA NA NA NA NA NA NA NA
FSLA First Savings Bank (MHC) 3.23 7.05 3.97 3.09 0.23 1.70 48.63 44.87
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. 3.08 7.57 4.57 3.00 0.20 1.77 54.34 51.36
FSPT FirstSpartan Financial Corp. 3.69 7.14 3.54 3.60 0.34 1.87 47.46 42.50
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 3.89 7.96 4.16 3.80 0.43 1.50 35.71 28.51
FTFC First Federal Capital Corp. 3.07 7.47 4.56 2.90 1.21 2.61 62.75 47.28
FTNB Fulton Bancorp Inc. 3.85 7.61 3.82 3.79 0.45 2.45 56.84 51.67
FTSB Fort Thomas Financial Corp. 4.15 8.49 4.46 4.03 0.31 2.29 52.81 49.23
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. 3.61 7.26 3.75 3.51 0.27 2.03 53.20 49.62
GDVS Greater Delaware Valley (MHC) 3.55 7.17 3.74 3.42 0.24 2.37 64.71 62.22
GDW Golden West Financial 2.36 7.30 5.00 2.29 0.19 0.84 33.93 28.51
GFCO Glenway Financial Corp. 3.22 7.52 4.42 3.10 0.29 2.02 57.57 53.64
GFED Guaranty Federal Bcshs Inc. 3.56 7.73 4.33 3.4 0.33 2.12 57.16 53.06
GFSB GFS Bancorp Inc. 3.51 8.12 4.64 3.48 0.20 1.80 48.95 46.01
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. 3.69 6.26 2.73 3.53 0.20 2.66 71.29 69.67
GPT GreenPoint Financial Corp. 3.87 7.39 3.78 3.61 0.35 2.03 42.81 37.25
GSB Golden State Bancorp Inc. 2.72 7.06 4.48 2.58 0.62 1.80 54.15 43.16
GSBC Great Southern Bancorp Inc. 4.09 8.23 4.29 3.94 1.41 2.57 48.88 30.56
GSFC Green Street Financial Corp. 4.37 7.43 3.10 4.33 0.05 1.79 41.01 40.29
GSLA GS Financial Corp. 4.60 7.12 2.70 4.42 0.03 2.39 53.73 53.43
GTPS Great American Bancorp 4.35 7.33 3.28 4.04 0.54 3.37 74.09 70.63
GUPB GFSB Bancorp Inc. 3.00 7.35 4.38 2.97 0.06 1.67 54.92 53.97
HALL Hallmark Capital Corp. 2.55 7.66 5.18 2.48 0.22 1.52 56.28 52.48
HARB Harbor Florida Bancorp (MHC) 3.81 7.83 4.12 3.71 0.35 1.97 47.94 42.97
HARL Harleysville Savings Bank 2.78 7.41 4.70 2.71 0.12 1.25 44.34 41.91
HARS Harris Financial Inc. (MHC) 2.50 7.07 4.67 2.40 0.33 1.80 62.68 57.54
HAVN Haven Bancorp Inc. 3.08 7.09 4.18 2.91 0.78 2.56 68.71 60.32
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. 4.31 7.04 2.97 4.07 0.29 3.07 70.95 68.89
HBFW Home Bancorp 2.86 7.41 4.59 2.81 0.08 1.39 48.15 46.73
HBNK Highland Bancorp Inc. 4.40 8.77 4.76 4.01 0.35 2.05 44.43 39.55
HBS Haywood Bancshares Inc. 3.39 7.34 4.10 3.24 0.27 1.40 58.55 55.05
HCBB HCB Bancshares Inc. 3.14 7.25 4.23 3.02 0.25 2.66 79.15 77.41
HCBC High Country Bancorp Inc. NA NA NA NA NA NA NA NA
HCFC Home City Financial Corp. NA NA NA NA NA NA NA NA
HEMT HF Bancorp Inc. 2.44 7.02 4.67 2.35 0.25 2.21 73.06 70.25
HFBC HopFed Bancorp Inc. 2.17 6.52 4.39 2.13 0.30 1.20 49.51 42.50
HFFB Harrodsburg First Fin Bancorp 3.63 7.12 3.56 3.56 0.09 1.55 42.33 40.86
HFFC HF Financial Corp. 3.71 8.01 4.49 3.53 1.46 3.19 62.21 46.59
</TABLE>
<PAGE>
Page 19 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- -------- --------- ------- ------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFSX First Fed SB of Siouxland(MHC) 0.36 2.52 (0.50) 94.24 31.750 34.500 18.833 14.34 14.23
FFWC FFW Corp. 20.92 19.45 18.48 28.63 19.000 20.875 10.750 12.69 11.57
FFWD Wood Bancorp Inc. 4.29 7.66 9.22 53.02 18.800 18.800 8.400 8.04 8.04
FFYF FFY Financial Corp. 5.57 1.92 (1.49) 138.38 33.125 33.125 25.000 20.53 20.53
FGHC First Georgia Holding Inc. 10.52 16.40 6.67 32.81 9.500 9.500 5.333 4.53 4.20
FIBC Financial Bancorp Inc. 18.97 8.82 7.93 44.02 24.125 25.750 14.875 16.10 16.03
FISB First Indiana Corp. 7.82 11.07 1.10 353.13 25.208 26.458 14.479 12.08 11.94
FKFS First Keystone Financial 21.83 10.31 3.68 42.22 17.875 18.688 9.500 10.38 10.38
FKKY Frankfort First Bancorp Inc. 2.23 7.58 (5.25) 26.31 17.625 24.500 16.000 13.92 13.92
FLAG FLAG Financial Corp. 4.17 3.21 (3.32) 40.74 16.125 16.500 10.250 10.66 10.66
FLFC First Liberty Financial Corp. 5.17 4.34 8.22 248.92 32.000 33.750 18.250 12.49 11.35
FLGS Flagstar Bancorp Inc. NA NA NA 309.28 20.750 21.500 13.000 8.89 8.54
FLKY First Lancaster Bancshares 35.33 37.59 6.14 14.42 15.938 16.375 14.500 14.92 14.92
FMBD First Mutual Bancorp Inc. 17.98 9.25 57.71 66.63 25.000 25.000 13.750 16.80 12.88
FMCO FMS Financial Corp. 12.17 1.33 8.94 83.27 27.250 31.500 15.500 15.80 15.57
FMSB First Mutual Savings Bank 6.94 8.58 13.53 75.80 18.500 20.167 10.606 7.43 7.43
FNGB First Northern Capital Corp. 8.48 7.04 5.12 114.99 14.000 14.000 8.125 8.35 8.35
FOBC Fed One Bancorp 7.28 24.31 3.70 83.72 27.500 27.500 15.750 17.67 16.93
FPRY First Financial Bancorp 10.78 25.03 10.52 NA 20.750 21.125 17.250 17.07 17.07
FSBI Fidelity Bancorp Inc. 22.71 24.67 8.23 48.51 29.000 29.250 16.818 17.21 17.21
FSFF First SecurityFed Financial NA NA NA 98.13 NA NA NA NA NA
FSLA First Savings Bank (MHC) 6.30 15.40 2.73 350.72 54.500 54.500 16.591 12.68 11.58
FSNJ Bayonne Bancshares Inc. 5.54 (2.88) (4.20) 126.10 13.375 13.375 7.16 10.63 10.63
FSPG First Home Bancorp Inc. 7.78 7.02 17.57 82.61 22.000 22.375 13.500 13.31 13.11
FSPT FirstSpartan Financial Corp. 31.90 19.37 10.53 192.71 40.250 40.250 35.000 29.52 29.52
FSSB First FS&LA of San Bernardino 0.37 11.00 1.86 3.16 9.750 11.500 9.000 13.68 13.18
FSTC First Citizens Corp. 36.90 31.41 42.51 88.72 34.000 35.500 14.167 12.86 10.28
FTF Texarkana First Financial Corp 10.20 8.10 6.35 48.83 25.000 27.000 14.875 15.52 15.52
FTFC First Federal Capital Corp. 1.91 9.95 11.96 286.63 33.875 34.000 15.833 11.90 11.26
FTNB Fulton Bancorp Inc. 8.57 2.63 1.73 37.71 22.125 26.500 14.750 15.06 15.06
FTSB Fort Thomas Financial Corp. 9.62 12.18 10.00 22.12 15.375 15.500 9.250 10.71 10.71
FWWB First SB of Washington Bancorp 16.34 26.39 9.36 269.05 27.500 28.563 18.000 16.12 14.93
GAF GA Financial Inc. 23.64 32.24 2.80 145.67 18.875 19.813 14.875 15.05 14.91
GDVS Greater Delaware Valley (MHC) 10.25 11.64 10.53 98.99 31.000 32.500 10.125 8.91 8.91
GDW Golden West Financial 4.93 10.51 9.09 5,396.57 97.813 97.813 59.875 47.28 47.28
GFCO Glenway Financial Corp. 9.29 12.40 (0.76) 44.72 18.750 19.500 9.500 12.41 12.28
GFED Guaranty Federal Bcshs Inc. 20.79 17.51 -2.16 75.83 12.875 14.436 5.955 11.18 11.18
GFSB GFS Bancorp Inc. 7.90 4.92 5.86 17.43 17.063 17.625 10.125 11.23 11.23
GLMR Gilmer Financial Svcs, Inc. 7.89 14.84 14.24 2.70 11.000 12.000 10.000 19.88 19.88
GOSB GSB Financial Corp. 19.51 12.23 (1.38) 35.97 18.063 18.938 14.250 14.66 14.66
GPT GreenPoint Financial Corp. (1.82) 20.34 (4.19) 3,041.79 36.282 36.282 22.813 17.00 9.27
GSB Golden State Bancorp Inc. 5.96 5.18 8.69 1,778.43 37.438 37.438 22.500 16.62 15.00
GSBC Great Southern Bancorp Inc. 12.10 10.04 22.38 206.23 24.500 25.875 16.000 8.13 8.06
GSFC Green Street Financial Corp. 2.00 5.43 2.20 75.22 18.250 20.750 15.500 14.73 14.73
GSLA GS Financial Corp. 51.49 11.07 (7.35) 70.71 16.375 16.375 13.375 16.44 16.44
GTPS Great American Bancorp 7.26 22.32 11.19 35.32 19.000 20.000 14.563 18.47 18.47
GUPB GFSB Bancorp Inc. 40.32 47.60 17.44 16.61 21.125 22.250 15.750 17.91 17.91
HALL Hallmark Capital Corp. 4.21 12.58 1.01 45.47 17.000 18.000 8.500 10.75 10.75
HARB Harbor Florida Bancorp (MHC) 6.47 9.01 7.24 360.86 66.250 69.750 33.500 20.24 19.64
HARL Harleysville Savings Bank 7.29 5.37 7.42 50.01 27.500 30.250 15.200 14.23 14.23
HARS Harris Financial Inc. (MHC) 24.50 8.64 (2.32) 819.42 19.875 20.750 6.042 5.29 4.72
HAVN Haven Bancorp Inc. 24.71 35.77 19.97 219.62 22.500 22.688 13.938 12.85 12.81
HBBI Home Building Bancorp (4.79) 1.69 (7.69) 7.36 21.250 23.750 18.500 20.61 20.61
HBEI Home Bancorp of Elgin Inc. (1.05) NA (1.42) 125.98 17.875 19.313 13 13.89 13.89
HBFW Home Bancorp 7.65 14.66 9.30 84.38 29.500 29.500 19.000 17.83 17.83
HBNK Highland Bancorp Inc. 12.19 14.39 (5.52) 82.88 32.750 33.125 17.500 17.90 17.90
HBS Haywood Bancshares Inc. 16.76 7.27 9.20 27.82 21.625 21.750 15.625 17.33 16.74
HCBB HCB Bancshares Inc. 16.12 8.46 (1.86) 38.52 14.500 14.500 12.625 14.45 13.95
HCBC High Country Bancorp Inc. NA NA NA 20.17 15.5 NA NA 13.49 13.49
HCFC Home City Financial Corp. NA NA NA 16.73 15.000 NA NA 15.20 15.20
HEMT HF Bancorp Inc. 4.98 30.20 1.12 109.48 17.500 17.875 11.000 13.29 11.18
HFBC HopFed Bancorp Inc. NA NA NA 69.08 NA NA NA NA NA
HFFB Harrodsburg First Fin Bancorp 1.73 5.17 1.07 30.77 16.750 18.250 14.750 15.85 15.85
HFFC HF Financial Corp. 5.05 0.02 7.48 87.46 26.500 27.250 16.750 18.70 18.70
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFGI Harrington Financial Group 1.35 6.58 5.26 1.31 0.05 1.03 75.04 74.02
HFNC HFNC Financial Corp. 3.40 7.61 4.31 3.29 0.12 1.84 53.55 51.92
HFSA Hardin Bancorp Inc. 2.77 7.37 4.64 2.74 0.25 1.80 60.72 57.15
HFWA Heritage Financial Corp. NA NA NA NA NA NA NA NA
HHFC Harvest Home Financial Corp. 2.65 7.06 4.46 2.61 0.06 1.65 62.00 61.07
HIFS Hingham Instit. for Savings 4.02 7.76 3.86 3.90 0.31 2.11 50.10 46.15
HMLK Hemlock Federal Financial Corp 3.50 6.99 3.54 3.45 0.33 2.17 57.44 53.32
HMNF HMN Financial Inc. 2.77 7.18 4.48 2.70 0.18 1.58 54.74 51.80
HOMF Home Federal Bancorp 3.69 7.92 4.41 3.51 0.86 2.16 50.22 37.96
HPBC Home Port Bancorp Inc. 4.71 8.13 3.58 4.56 0.46 2.21 44.09 38.47
HRBF Harbor Federal Bancorp Inc. 3.00 7.38 4.44 2.94 0.13 1.87 60.75 58.96
HRZB Horizon Financial Corp. 3.64 7.75 4.23 3.52 0.26 1.40 37.01 32.28
HTHR Hawthorne Financial Corp. 3.79 8.52 4.94 3.58 0.42 2.45 61.97 57.52
HWEN Home Financial Bancorp 4.39 8.60 4.36 4.24 0.32 3.35 74.61 72.71
HZFS Horizon Financial Svcs Corp. 3.27 7.62 4.48 3.13 0.51 2.38 64.08 58.23
IBSF IBS Financial Corp. 3.12 6.98 3.95 3.03 0.11 1.93 61.58 60.22
IFSB Independence Federal Svgs Bank 2.62 7.22 4.73 2.49 1.05 3.05 82.36 74.88
INBI Industrial Bancorp Inc. 4.05 8.04 4.07 3.97 0.15 1.78 43.27 41.16
INCB Indiana Community Bank SB 4.28 7.74 3.57 4.17 1.04 3.97 76.12 70.14
IPSW Ipswich Savings Bank 3.60 7.17 3.74 3.43 0.58 2.39 60.16 53.44
ITLA ITLA Capital Corp. 4.65 9.32 4.74 4.58 0.18 2.04 41.96 39.69
IWBK InterWest Bancorp Inc. 3.25 7.56 4.51 3.05 0.61 2.17 58.16 49.74
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 7.03 2.61 4.43 0.26 1.75 39.02 35.39
JSBA Jefferson Savings Bancorp 3.04 7.50 4.56 2.94 0.16 1.77 53.48 50.96
JXSB Jacksonville Savings Bk (MHC) 3.53 7.60 4.29 3.31 0.41 2.82 75.69 72.64
JXVL Jacksonville Bancorp Inc. 3.89 7.78 3.99 3.79 0.56 2.17 52.33 45.28
KFBI Klamath First Bancorp 3.32 7.14 3.92 3.22 0.17 1.71 47.68 44.92
KNK Kankakee Bancorp Inc. 3.22 7.23 4.15 3.09 0.46 2.37 65.13 59.95
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 8.36 4.01 4.35 0.78 3.21 61.08 54.15
KYF Kentucky First Bancorp Inc. 3.45 7.23 3.85 3.37 0.18 1.91 53.63 51.11
LARK Landmark Bancshares Inc. 3.15 7.50 4.41 3.09 0.25 1.60 47.64 43.37
LARL Laurel Capital Group Inc. 3.69 7.43 3.81 3.62 0.32 1.72 43.61 38.58
LFBI Little Falls Bancorp Inc. 2.69 6.60 4.02 2.58 0.07 1.78 60.34 59.22
LFCO Life Financial Corp. 3.74 6.00 3.64 2.36 8.89 4.30 37.89 (196.30)
LFED Leeds Federal Bankshares (MHC) 2.95 7.06 4.16 2.90 0.10 1.05 35.11 32.88
LISB Long Island Bancorp Inc. 2.80 6.93 4.24 2.69 0.46 1.86 58.33 51.28
LOGN Logansport Financial Corp. 3.95 7.62 3.80 3.81 0.20 1.55 38.75 35.59
LONF London Financial Corp. 3.73 7.66 3.97 3.69 0.18 2.34 60.61 58.70
LSBI LSB Financial Corp. 3.44 7.80 4.45 3.34 0.35 2.45 66.28 62.77
LSBX Lawrence Savings Bank 3.26 7.23 4.07 3.17 0.38 2.21 62.11 57.60
LVSB Lakeview Financial 3.42 6.91 3.63 3.28 0.66 2.29 50.07 40.01
LXMO Lexington B&L Financial Corp. 4.10 8.15 4.13 4.02 0.25 2.48 57.62 55.00
MAFB MAF Bancorp Inc. 2.97 7.20 4.38 2.83 0.45 1.44 47.82 39.48
MARN Marion Capital Holdings 4.30 7.79 3.81 3.98 0.60 2.51 49.75 42.19
MASB MASSBANK Corp. 2.91 6.66 3.81 2.86 0.20 1.39 44.33 40.35
MBB MSB Bancorp Inc. 3.26 6.65 3.66 3.00 0.52 2.48 57.01 49.52
MBBC Monterey Bay Bancorp Inc. 2.83 7.15 4.44 2.72 0.33 2.29 68.20 64.31
MBLF MBLA Financial Corp. 2.10 6.95 4.87 2.08 0.01 0.64 30.44 30.26
MBSP Mitchell Bancorp Inc. 5.10 7.71 2.76 4.95 0.01 2.41 48.69 48.54
MCBN Mid-Coast Bancorp Inc. 3.99 7.97 4.27 3.71 0.39 2.92 70.84 67.77
MDBK Medford Bancorp Inc. 3.26 6.95 3.82 3.14 0.25 1.72 47.33 43.06
MECH MECH Financial Inc. 3.84 7.08 3.46 3.61 0.92 2.79 61.67 51.90
MERI Meritrust Federal SB 3.53 7.28 3.90 3.38 0.73 2.24 54.85 45.14
METF Metropolitan Financial Corp. 3.48 8.27 4.97 3.30 0.42 2.40 63.73 59.06
MFBC MFB Corp. 3.23 7.52 4.35 3.17 0.18 1.96 58.39 55.99
MFFC Milton Federal Financial Corp. 2.97 7.33 4.45 2.88 0.14 2.04 67.70 66.16
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 2.73 7.26 4.58 2.67 0.23 1.60 53.99 49.99
MIFC Mid-Iowa Financial Corp. 3.00 7.32 4.41 2.91 0.92 2.15 56.25 42.50
MIVI Mississippi View Holding Co. 3.91 7.48 3.62 3.85 0.25 2.35 57.68 54.88
MONT Montgomery Financial Corp. 3.39 7.76 4.50 3.25 0.03 1.97 61.50 61.14
MRKF Market Financial Corp. 3.69 6.72 3.07 3.65 0.01 2.08 56.77 56.64
</TABLE>
<PAGE>
Page 20 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- -------- --------- ------- ------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFGI Harrington Financial Group 3.28 36.76 4.22 38.55 13.000 13.750 9.750 7.50 7.50
HFNC HFNC Financial Corp. 1.02 22.59 (1.36) 243.93 14.500 22.063 13.938 9.66 9.66
HFSA Hardin Bancorp Inc. 18.99 14.78 12.93 15.75 18.250 18.625 12.250 15.89 15.89
HFWA Heritage Financial Corp. NA NA NA 145.05 NA NA NA NA NA
HHFC Harvest Home Financial Corp. 11.33 3.81 4.37 12.81 15.750 15.750 9.250 11.62 11.62
HIFS Hingham Instit. for Savings 10.42 14.32 6.99 42.69 28.750 29.000 18.000 16.40 16.40
HMLK Hemlock Federal Financial Corp 20.68 41.73 (0.22) 38.67 17.125 17.500 12.500 14.65 14.65
HMNF HMN Financial Inc. 24.61 26.98 28.93 121.74 32.500 32.500 18.000 20.38 18.92
HOMF Home Federal Bancorp 9.07 7.51 6.28 162.56 26.000 28.250 16.167 12.21 11.87
HPBC Home Port Bancorp Inc. 9.94 15.52 5.44 49.73 23.125 25 16.125 11.92 11.92
HRBF Harbor Federal Bancorp Inc. 6.76 4.32 5.35 40.54 25.250 25.250 15.375 17.22 17.22
HRZB Horizon Financial Corp. 5.59 3.55 5.11 134.22 17.750 18.375 11.522 11.38 11.38
HTHR Hawthorne Financial Corp. 9.56 24.14 11.38 60.46 20.125 24.000 7.750 13.69 13.69
HWEN Home Financial Bancorp 11.46 17.08 6.24 8.13 9.250 9.250 6.375 7.95 7.95
HZFS Horizon Financial Svcs Corp. 19.89 9.29 2.56 14.29 12.000 13.000 7.500 10.58 10.58
IBSF IBS Financial Corp. (3.27) 13.73 (2.68) 197.00 17.688 18.750 13.261 11.80 11.80
IFSB Independence Federal Svgs Bank 1.48 2.01 (2.45) 20.90 14.125 14.750 7.000 14.23 12.67
INBI Industrial Bancorp Inc. 11.45 12.55 4.59 100.78 17.750 18.313 12.000 11.93 11.93
INCB Indiana Community Bank SB 6.91 (2.48) 7.54 19.02 20.500 20.500 15.000 12.57 12.57
IPSW Ipswich Savings Bank 42.97 42.98 32.39 32.50 16.500 16.500 5.938 4.96 4.96
ITLA ITLA Capital Corp. 25.35 22.92 25.88 154.48 19.25 21.25 14 12.62 NA
IWBK InterWest Bancorp Inc. 16.38 16.67 0.01 341.57 37.750 43.250 27.625 16.60 16.32
JOAC Joachim Bancorp Inc. (2.51) 5.24 (0.15) 12.01 16.000 16.000 14.000 13.70 13.70
JSB JSB Financial Inc. 0.81 10.79 (2.45) 532.58 48.938 49.375 35.625 35.91 35.91
JSBA Jefferson Savings Bancorp 11.47 15.34 22.02 270.40 20.188 20.188 11.125 12.29 9.64
JXSB Jacksonville Savings Bk (MHC) 17.88 10.31 19.31 44.84 20.000 20.000 9.167 9.17 9.17
JXVL Jacksonville Bancorp Inc. 7.85 10.51 11.16 48.87 23.250 23.250 13.250 14.09 14.09
KFBI Klamath First Bancorp 44.88 17.39 68.93 229.86 21.500 24.250 15.000 15.92 14.55
KNK Kankakee Bancorp Inc. (2.06) 2.06 0.96 48.35 37.750 37.750 23.375 27.57 25.99
KSAV KS Bancorp Inc. 13.03 16.52 9.68 NA 24.750 25.500 14.813 16.50 16.50
KSBK KSB Bancorp Inc. 13.69 20.09 1.23 22.92 22.500 22.500 7.667 9.33 8.91
KYF Kentucky First Bancorp Inc. (1.78) 4.17 0.61 17.23 14.938 14.938 10.563 11.32 11.32
LARK Landmark Bancshares Inc. 5.25 19.99 2.38 38.84 24.875 27.250 18.000 19.49 19.49
LARL Laurel Capital Group Inc. 5.39 0.41 2.45 46.49 21.667 22.167 11.000 10.37 10.37
LFBI Little Falls Bancorp Inc. 15.62 30.35 (4.50) 47.69 18.500 18.500 11.375 14.53 13.40
LFCO Life Financial Corp. 293.57 361.50 147.07 117.82 12.625 21.875 11.750 8.37 8.37
LFED Leeds Federal Bankshares (MHC) 4.71 12.28 3.85 112.06 21.750 23.500 10.333 9.35 9.35
LISB Long Island Bancorp Inc. 5.44 7.33 2.22 1,438.71 49.625 49.750 33.000 23.19 22.98
LOGN Logansport Financial Corp. 10.88 11.99 5.57 21.59 18.000 18.000 11.125 13.12 13.12
LONF London Financial Corp. 1.62 3.80 6.52 7.78 16.750 21.000 14.000 10.23 10.23
LSBI LSB Financial Corp. 11.90 11.86 17.73 27.26 28.500 28.500 17.857 20.64 20.64
LSBX Lawrence Savings Bank 6.51 7.09 3.41 81.47 16.375 16.375 8.125 8.77 8.77
LVSB Lakeview Financial 9.58 29.98 2.23 106.19 24.750 26.000 11.250 13.29 11.24
LXMO Lexington B&L Financial Corp. 49.96 38.71 75.11 18.21 17.750 17.875 13.000 15.13 14.19
MAFB MAF Bancorp Inc. 7.04 11.22 3.31 577.99 35.375 35.375 22.250 17.55 15.46
MARN Marion Capital Holdings 9.13 5.66 7.85 48.55 27.125 28.125 19.250 22.38 21.90
MASB MASSBANK Corp. 4.18 9.07 2.73 171.40 47.625 48.250 28.125 29.06 28.64
MBB MSB Bancorp Inc. (8.75) 14.02 (8.61) 99.55 28.875 28.875 15.500 22.40 11.94
MBBC Monterey Bay Bancorp Inc. (4.15) 13.33 0.76 69.44 19.500 20.500 14.625 15.83 14.76
MBLF MBLA Financial Corp. 7.02 15.88 18.24 35.27 30.500 30.500 19.000 22.32 22.32
MBSP Mitchell Bancorp Inc. 5.56 8.25 11.09 15.48 17.000 18.000 14.000 15.56 15.56
MCBN Mid-Coast Bancorp Inc. 8.29 2.65 9.84 9.01 30.000 32.500 18.500 22.03 22.03
MDBK Medford Bancorp Inc. 9.28 1.67 3.73 198.11 39.25 42 24.5 22.35 21.03
MECH MECH Financial Inc. 19.51 16.86 1.91 140.93 26.063 28.000 15.500 16.73 16.73
MERI Meritrust Federal SB 3.18 4.36 2.30 60.97 69.000 69.000 31.500 25.66 25.66
METF Metropolitan Financial Corp. 20.27 9.66 18.59 119.87 15.500 15.750 5.375 5.20 4.78
MFBC MFB Corp. 17.93 25.55 7.34 43.72 30.375 30.375 16.625 20.61 20.61
MFFC Milton Federal Financial Corp. 24.54 25.26 9.86 35.70 15.375 15.938 13.250 12.21 12.21
MFLR Mayflower Co-operative Bank 9.51 4.22 2.79 23.27 25.000 26.750 15.750 14.31 14.09
MFSL Maryland Federal Bancorp 4.83 0.28 2.72 233.33 26.625 26.625 16.375 15.84 15.68
MIFC Mid-Iowa Financial Corp. 15.61 13.86 8.71 20.52 11.500 11.750 6.375 7.41 7.40
MIVI Mississippi View Holding Co. (2.43) 1.39 (2.62) 14.25 18.500 19.750 12.000 16.85 16.85
MONT Montgomery Financial Corp. 11.68 12.03 5.26 21.18 12.875 14.000 11.000 11.89 11.89
MRKF Market Financial Corp. 24.28 22.13 (4.88) 22.87 15.625 16.000 12.250 15.13 15.13
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MSBF MSB Financial Inc. 4.78 8.26 3.65 4.61 0.46 2.80 55.35 50.86
MSBK Mutual Savings Bank FSB 1.75 6.49 4.77 1.72 0.47 2.18 99.81 99.76
MWBI Midwest Bancshares Inc. 2.88 7.42 4.64 2.78 0.23 1.78 59.12 55.71
MWBX MetroWest Bank 4.11 7.73 3.81 3.92 0.39 2.64 59.83 55.83
MWFD Midwest Federal Financial 4.00 7.99 4.21 3.78 0.86 2.90 61.55 52.82
MYST Mystic Financial Inc. NA NA NA NA NA NA NA NA
NASB North American Savings Bank 3.62 8.41 4.88 3.53 0.82 2.04 47.31 35.08
NBN Northeast Bancorp 4.08 8.39 4.47 3.93 0.67 3.32 69.82 64.69
NBSI North Bancshares Inc. 3.27 7.28 4.14 3.14 0.19 2.55 76.56 75.13
NEIB Northeast Indiana Bancorp 3.58 7.87 4.33 3.53 0.30 1.73 45.15 40.52
NHTB New Hampshire Thrift Bncshrs 3.67 7.40 3.99 3.41 0.69 2.66 62.28 54.65
NMSB NewMil Bancorp Inc. 3.97 7.37 3.54 3.84 0.45 2.67 65.15 61.07
NSLB NS&L Bancorp Inc. 3.27 6.70 3.51 3.18 0.40 2.46 68.48 64.48
NSSY NSS Bancorp Inc. 3.06 7.11 4.13 2.98 0.67 2.63 68.74 61.67
NTBK Net.B@nk Inc. NA NA NA NA NA NA NA NA
NTMG Nutmeg Federal S&LA 4.20 7.30 3.30 3.99 1.23 4.07 76.54 69.33
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) 3.80 7.85 4.22 3.63 0.31 2.26 55.23 51.41
NYB New York Bancorp Inc. 3.81 7.66 3.93 3.73 0.38 1.61 38.52 32.27
OCFC Ocean Financial Corp. 3.12 6.96 3.92 3.04 0.17 1.62 50.91 48.15
OCN Ocwen Financial Corp. 4.91 9.61 5.51 4.10 0.99 3.23 85.96 82.56
OFCP Ottawa Financial Corp. 3.36 7.45 4.34 3.11 0.41 2.15 57.12 51.44
OHSL OHSL Financial Corp. 3.17 7.63 4.54 3.09 0.16 1.98 61.03 58.97
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. 4.72 7.69 3.21 4.48 0.36 2.65 53.02 49.28
PBCT People's Bank (MHC) 3.51 6.70 3.47 3.23 2.43 4.07 70.74 48.74
PBHC Pathfinder Bancorp Inc. (MHC) 4.06 7.39 3.60 3.80 0.51 3.02 66.18 61.64
PBKB People's Bancshares Inc. 3.11 7.24 4.26 2.98 0.29 2.61 77.55 75.34
PCBC Perry County Financial Corp. 2.85 6.88 4.07 2.81 0.04 1.08 37.74 36.82
PDB Piedmont Bancorp Inc. 3.95 7.84 3.99 3.85 0.28 2.13 52.18 48.65
PEDE Great Pee Dee Bancorp NA NA NA NA NA NA NA NA
PEEK Peekskill Financial Corp. 3.69 6.74 3.10 3.64 0.12 1.82 48.28 46.54
PERM Permanent Bancorp Inc. 2.72 7.15 4.54 2.62 0.43 1.99 64.17 58.27
PERT Perpetual Bank (MHC) 3.85 7.72 4.04 3.68 0.91 2.93 63.96 55.05
PFDC Peoples Bancorp 3.69 7.70 4.05 3.65 0.22 1.45 37.31 33.47
PFED Park Bancorp Inc. 3.56 7.03 3.60 3.42 0.10 2.20 66.89 65.89
PFFB PFF Bancorp Inc. 2.89 7.23 4.42 2.81 0.47 2.03 60.59 54.06
PFFC Peoples Financial Corp. 3.71 7.19 3.58 3.61 0.03 2.42 66.44 66.13
PFNC Progress Financial Corp. 4.57 8.21 3.96 4.25 1.21 4.06 71.06 62.82
PFSB PennFed Financial Services Inc 2.59 7.13 4.64 2.49 0.16 1.32 42.55 38.95
PFSL Pocahontas FS&LA (MHC) 2.02 6.97 5.01 1.96 0.33 1.31 57.35 50.13
PHBK Peoples Heritage Finl Group 4.66 7.68 3.41 4.28 0.95 3.26 59.53 50.59
PHFC Pittsburgh Home Financial Corp 2.97 7.53 4.66 2.86 0.20 1.82 58.81 55.92
PHSB Peoples Home Savings Bk (MHC) 3.54 7.24 3.80 3.43 0.38 2.75 72.11 68.98
PKPS Poughkeepsie Financial Corp. 3.30 7.66 4.51 3.15 0.44 2.74 68.28 63.90
PLSK Pulaski Savings Bank (MHC) 3.23 7.25 4.19 3.06 0.10 2.04 64.22 63.03
PMFI Perpetual Midwest Financial 2.97 7.67 4.83 2.84 0.39 2.21 68.41 64.10
PRBC Prestige Bancorp Inc. 3.18 7.00 3.91 3.08 0.26 2.33 69.66 67.08
PROV Provident Financial Holdings 3.19 7.13 4.06 3.07 0.70 2.83 75.79 70.25
PSBK Progressive Bank Inc. 4.05 7.78 3.93 3.85 0.38 2.43 53.62 49.04
PSFC Peoples-Sidney Financial Corp. 3.79 7.76 4.04 3.72 0.06 1.91 50.42 49.57
PSFI PS Financial Inc. 5.20 7.42 2.52 4.90 0.10 1.55 30.97 29.58
PTRS Potters Financial Corp. 3.36 7.13 3.88 3.25 0.29 2.44 70.91 68.28
PULB Pulaski Bank, Svgs Bank (MHC) 3.78 7.61 3.92 3.69 0.27 2.39 60.31 57.39
PULS Pulse Bancorp 2.68 7.00 4.38 2.63 0.08 1.02 37.71 35.92
PVFC PVF Capital Corp. 3.96 8.77 4.83 3.94 0.32 2.23 52.46 48.63
PVSA Parkvale Financial Corp. 2.98 7.23 4.30 2.93 0.23 1.44 44.92 40.59
PWBC PennFirst Bancorp Inc. 2.11 6.84 4.76 2.07 0.13 1.18 53.63 50.66
PWBK Pennwood Bancorp Inc. 4.43 7.91 3.70 4.20 0.25 2.85 62.07 59.81
QCBC Quaker City Bancorp Inc. 3.06 7.65 4.65 3.00 0.33 1.86 53.17 48.08
QCFB QCF Bancorp Inc. 4.14 7.19 3.12 4.07 0.38 1.80 40.43 34.85
QCSB Queens County Bancorp Inc. 4.66 8.15 3.83 4.32 0.12 1.87 41.82 40.16
RARB Raritan Bancorp Inc. 3.57 7.22 3.80 3.43 0.25 1.95 52.01 48.52
</TABLE>
<PAGE>
Page 21 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- -------- --------- ------- ------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MSBF MSB Financial Inc. 16.39 14.98 2.52 20.32 19.000 19.500 9.500 10.56 10.56
MSBK Mutual Savings Bank FSB (3.00) 25.81 (0.71) 58.34 13.000 14.625 5.500 9.91 9.91
MWBI Midwest Bancshares Inc. 8.28 12.13 3.30 17.35 18.250 19.500 8.833 10.46 10.46
MWBX MetroWest Bank 16.53 17.37 13.96 112.43 9.000 9.500 4.625 3.17 3.17
MWFD Midwest Federal Financial 8.72 13.01 4.01 48.83 23.500 24.500 16.750 11.70 11.31
MYST Mystic Financial Inc. NA NA NA 50.33 NA NA NA NA NA
NASB North American Savings Bank (0.62) (2.16) 6.96 156.78 53.125 56.000 33.875 27.83 27.02
NBN Northeast Bancorp 16.89 21.39 21.96 40.22 19.000 19.250 8.833 9.46 8.53
NBSI North Bancshares Inc. 4.69 7.68 1.96 25.02 17.875 18.833 10.500 11.60 11.60
NEIB Northeast Indiana Bancorp 18.93 21.33 24.44 36.90 19.500 20.250 12.750 15.51 15.51
NHTB New Hampshire Thrift Bncshrs 20.27 18.30 26.77 42.28 20.500 22.750 11.750 12.24 10.58
NMSB NewMil Bancorp Inc. 14.00 4.68 8.21 52.85 13.000 14.500 8.750 8.54 8.54
NSLB NS&L Bancorp Inc. (0.98) 12.30 5.15 12.00 18.875 19.500 13.625 16.64 16.52
NSSY NSS Bancorp Inc. 5.27 (2.24) (9.64) 101.94 36.000 37.000 22.688 22.49 21.83
NTBK Net.B@nk Inc. NA NA NA 125.99 10.625 NA NA 5.69 5.69
NTMG Nutmeg Federal S&LA 11.95 8.84 11.10 11.10 8.438 8.438 5.250 5.88 5.88
NWEQ Northwest Equity Corp. 3.15 3.46 0.85 18.14 20.750 20.750 11.875 14.82 14.82
NWSB Northwest Bancorp Inc. (MHC) 17.62 13.25 23.41 745.86 14.125 16.375 6.625 4.44 3.94
NYB New York Bancorp Inc. 4.57 7.39 (1.07) 878.41 39.719 39.719 18.656 8.34 8.34
OCFC Ocean Financial Corp. 15.88 15.29 4.50 275.83 37.250 38.375 25.500 27.45 27.45
OCN Ocwen Financial Corp. 23.57 NA 3.29 1,779.12 25.438 28.282 12.625 6.93 6.67
OFCP Ottawa Financial Corp. 4.42 4.73 5.15 154.08 34.000 34.000 15.341 14.37 11.69
OHSL OHSL Financial Corp. 10.77 8.85 8.97 45.61 27.000 28.250 21.000 21.60 21.60
OSFS Ohio State Financial Services 12.17 (2.73) (5.90) 10.15 15.500 15.500 15.500 16.47 16.47
OTFC Oregon Trail Financial Corp. NA NA NA 79.07 17.375 NA NA 15.34 15.34
PBCI Pamrapo Bancorp Inc. 3.80 1.63 2.22 76.76 27.250 27.250 18.500 17.07 16.96
PBCT People's Bank (MHC) 7.05 3.76 11.88 2,320.38 38.000 38.000 18.959 11.61 11.55
PBHC Pathfinder Bancorp Inc. (MHC) 3.60 11.64 (4.15) 61.09 20.000 20.000 6.253 8.20 6.95
PBKB People's Bancshares Inc. 53.77 48.79 5.60 78.52 22.750 24.500 10.500 9.16 8.81
PCBC Perry County Financial Corp. 5.75 23.91 (1.20) 19.77 24.125 25.000 17.000 19.76 19.76
PDB Piedmont Bancorp Inc. 4.06 11.92 6.69 29.23 10.875 11.625 9.250 7.66 7.66
PEDE Great Pee Dee Bancorp NA NA NA 35.37 16.125 NA NA 14.15 14.15
PEEK Peekskill Financial Corp. (1.77) 10.47 3.24 53.16 16.750 18.250 13.375 14.87 14.87
PERM Permanent Bancorp Inc. 1.66 2.40 0.69 70.08 31.125 31.125 20.375 20.67 20.43
PERT Perpetual Bank (MHC) 30.97 26.27 20.89 98.64 60.625 65.500 22.563 20.29 20.29
PFDC Peoples Bancorp 4.98 8.57 3.99 79.46 22.000 25.000 13.000 13.25 13.25
PFED Park Bancorp Inc. (0.69) 3.22 5.64 44.03 18.625 18.625 13.000 16.55 16.55
PFFB PFF Bancorp Inc. 9.56 2.75 1.39 350.14 19.875 21.500 13.625 14.95 14.80
PFFC Peoples Financial Corp. (7.60) 29.29 2.17 23.20 15.125 19.000 12.750 10.98 10.98
PFNC Progress Financial Corp. 28.61 28.93 11.27 72.13 16.500 16.500 7.679 6.18 5.19
PFSB PennFed Financial Services Inc 21.57 20.74 11.00 176.04 17.125 17.375 10.000 11.52 9.87
PFSL Pocahontas FS&LA (MHC) 4.37 17.15 28.95 73.66 44.500 45.000 16.750 15.16 15.16
PHBK Peoples Heritage Finl Group 25.88 29.06 14.75 1,284.60 46.000 47.000 26.188 17.13 12.87
PHFC Pittsburgh Home Financial Corp 37.03 28.29 4.35 35.45 18.000 20.813 13.000 12.52 12.37
PHSB Peoples Home Savings Bk (MHC) 7.67 3.99 (0.93) 54.17 18.875 19.750 13.625 10.37 10.37
PKPS Poughkeepsie Financial Corp. 1.96 4.85 7.85 133.20 11.625 11.625 5.250 5.75 5.75
PLSK Pulaski Savings Bank (MHC) 13.07 6.20 4.09 38.47 19.250 24.500 11.500 10.29 10.29
PMFI Perpetual Midwest Financial 0.92 12.67 9.99 55.09 29.250 30.500 18.750 18.49 18.49
PRBC Prestige Bancorp Inc. 24.97 25.68 8.75 17.38 20.000 20.000 13.000 17.08 17.08
PROV Provident Financial Holdings 22.41 25.37 9.69 109.84 21.875 22.250 13.750 17.85 17.85
PSBK Progressive Bank Inc. 0.95 (3.12) 0.55 167.40 38.250 39.250 22.750 20.48 18.57
PSFC Peoples-Sidney Financial Corp. 15.11 9.45 (1.99) 32.14 17.875 18.500 12.563 15.85 15.85
PSFI PS Financial Inc. NA NA NA 29.16 17.125 18.000 11.625 14.76 14.76
PTRS Potters Financial Corp. (2.22) 36.78 2.96 17.36 14.125 14.125 7.750 11.21 11.21
PULB Pulaski Bank, Svgs Bank (MHC) 2.29 6.52 2.28 101.70 31.375 32.500 14.500 11.54 11.54
PULS Pulse Bancorp 5.81 5.04 3.77 82.33 26.125 29.750 15.750 14.31 14.31
PVFC PVF Capital Corp. 13.99 13.89 13.61 60.33 20.188 21.750 13.636 10.85 10.85
PVSA Parkvale Financial Corp. 7.81 20.76 7.58 158.98 34.250 34.250 19.600 15.79 15.70
PWBC PennFirst Bancorp Inc. 30.35 NA 20.03 100.80 19.250 19.500 12.273 13.00 NA
PWBK Pennwood Bancorp Inc. 1.08 41.99 3.58 11.01 19.750 19.750 13.000 16.76 16.76
QCBC Quaker City Bancorp Inc. 11.47 4.12 7.27 97.82 21.250 24.563 14.200 15.73 15.73
QCFB QCF Bancorp Inc. 3.91 12.02 0.83 39.04 29.750 29.750 17.500 19.41 19.41
QCSB Queens County Bancorp Inc. 18.00 21.54 4.42 596.51 40.500 40.500 20.222 13.23 13.23
RARB Raritan Bancorp Inc. 8.77 13.88 1.78 66.42 28.000 29.250 15.500 13.01 12.83
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp NA NA NA NA NA NA NA NA
REDF RedFed Bancorp Inc. 3.37 7.13 3.94 3.19 0.75 2.66 64.00 55.50
RELI Reliance Bancshares Inc. 5.02 7.39 2.59 4.80 0.05 3.11 64.15 63.80
RELY Reliance Bancorp Inc. 3.41 7.16 3.94 3.22 0.2 1.79 46.67 43.28
RIVR River Valley Bancorp 3.71 7.01 3.45 3.57 0.53 2.86 69.21 64.59
ROSE TR Financial Corp. 2.63 7.19 4.61 2.58 0.20 1.29 46.09 41.84
RSLN Roslyn Bancorp Inc. 2.76 6.23 3.50 2.73 0.19 1.33 44.80 40.98
RVSB Riverview Bancorp Inc. 4.51 8.17 3.94 4.24 0.86 2.95 54.96 45.77
SBFL SB of the Finger Lakes (MHC) 3.15 7.07 4.10 2.96 0.25 2.60 78.26 76.46
SBOS Boston Bancorp (The) 2.72 6.92 4.27 2.65 0.16 1.51 56.25 53.67
SCBS Southern Community Bancshares 3.97 7.30 3.39 3.91 0.24 2.28 54.94 52.14
SCCB S. Carolina Community Bancshrs 4.14 7.68 3.62 4.06 0.25 2.68 61.79 59.42
SFED SFS Bancorp Inc. 3.46 7.26 3.89 3.37 0.25 2.55 70.82 68.67
SFFC StateFed Financial Corp. 3.47 7.79 4.51 3.28 0.16 1.44 52.28 50.02
SFIN Statewide Financial Corp. 3.70 7.28 3.68 3.60 0.29 2.49 63.67 60.76
SFSB SuburbFed Financial Corp. 2.85 7.12 4.37 2.75 0.67 2.56 74.48 68.24
SFSL Security First Corp. 4.00 8.26 4.40 3.86 0.26 1.99 47.85 44.31
SGVB SGV Bancorp Inc. 2.60 7.19 4.68 2.52 0.27 2.15 74.85 72.18
SHEN First Shenango Bancorp Inc. 3.22 7.44 4.27 3.17 0.19 1.47 42.86 39.36
SHSB SHS Bancorp Inc. 2.90 7.75 4.91 2.85 0.14 2.16 69.84 68.32
SIB Staten Island Bancorp Inc. 4.39 7.05 2.88 4.16 0.35 2.06 43.41 38.65
SISB SIS Bancorp Inc. 3.80 7.12 3.53 3.59 0.92 2.99 65.85 57.08
SKAN Skaneateles Bancorp Inc. 4.13 7.73 3.84 3.88 0.72 3.38 72.00 66.80
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. 3.19 7.07 3.94 3.14 0.35 2.05 61.45 57.14
SOBI Sobieski Bancorp Inc. 3.38 7.27 4.02 3.25 0.17 2.39 70.09 68.55
SOPN First Savings Bancorp Inc. 3.90 7.57 3.75 3.83 0.17 1.24 30.99 27.85
SOSA Somerset Savings Bank 4.04 8.17 4.31 3.85 0.22 2.96 63.36 61.24
SPBC St. Paul Bancorp Inc. 3.01 7.00 4.11 2.88 0.90 2.14 59.09 46.34
SRN Southern Banc Co. 2.77 7.05 4.33 2.72 0.10 2.08 72.14 71.15
SSB Scotland Bancorp Inc. 4.58 7.56 3.06 4.50 0.11 2.26 48.91 47.66
SSFC South Street Financial Corp. 3.37 7.15 3.85 3.30 0.06 1.93 57.30 56.46
SSM Stone Street Bancorp Inc. 4.80 7.91 3.24 4.68 0.14 2.25 46.72 45.11
STFR St. Francis Capital Corp. 2.74 7.11 4.57 2.54 0.37 1.99 64.20 59.00
STSA Sterling Financial Corp. 2.81 7.62 4.97 2.65 0.48 2.16 64.77 58.45
SVRN Sovereign Bancorp Inc. 2.63 7.16 4.62 2.54 0.23 1.36 45.74 40.73
SWBI kouthwest Bancshares Inc. 3.39 7.43 4.26 3.17 0.19 1.73 56.11 53.50
SWCB Sandwich Bancorp Inc. 3.72 7.23 3.69 3.54 0.51 2.46 58.18 52.13
SZB SouthFirst Bancshares Inc. 3.88 7.59 3.95 3.64 1.11 3.56 74.91 67.27
THR Three Rivers Financial Corp. 3.70 7.53 3.95 3.58 0.53 2.82 68.85 64.29
THRD TF Financial Corp. 3.12 6.85 3.82 3.03 0.19 2.15 61.67 59.25
TPNZ Tappan Zee Financial Inc. 3.78 7.43 3.72 3.71 0.13 2.40 62.22 60.92
TRIC Tri-County Bancorp Inc. 3.19 7.33 4.22 3.11 0.16 1.84 56.26 54.01
TSBK Timberland Bancorp Inc. NA NA NA NA NA NA NA NA
TSBS Peoples Bancorp Inc. (MHC) 3.66 6.94 3.45 3.48 0.31 2.13 52.66 48.41
TSH Teche Holding Co. 3.39 7.56 4.25 3.31 0.73 2.55 63.87 55.95
TWIN Twin City Bancorp 3.92 7.73 3.99 3.74 0.39 2.58 63.03 59.21
UBMT United Financial Corp. 3.80 7.02 3.36 3.66 0.62 2.04 47.68 38.81
UCBC Union Community Bancorp 3.53 7.81 4.37 3.43 0.07 1.42 34.24 32.85
UFRM United Federal Savings Bank 3.86 8.19 4.59 3.60 0.95 3.45 75.52 69.04
USAB USABancshares, Inc. 4.80 9.17 4.50 4.67 0.57 4.00 73.80 70.58
UTBI United Tennessee Bankshares NA NA NA NA NA NA NA NA
VABF Virginia Beach Fed. Financial 3.15 7.98 4.91 3.07 0.36 2.60 75.37 72.44
WAMU Washington Mutual Inc. 3.03 7.38 4.50 2.88 0.84 1.98 51.23 37.06
WAYN Wayne Savings Bancshares (MHC) 3.33 7.56 4.35 3.21 0.23 2.37 68.82 66.58
WBST Webster Financial Corp. 3.16 7.02 4.00 3.02 0.51 2.07 54.92 47.37
WCBI Westco Bancorp Inc. 3.64 7.58 4.04 3.54 0.26 1.56 41.31 37.07
WCFB Webster City Federal SB (MHC) 3.65 7.15 3.57 3.58 0.22 1.46 38.40 34.66
WEFC Wells Financial Corp. 3.42 7.56 4.21 3.36 0.50 1.96 50.95 43.69
WEHO Westwood Homestead Fin. Corp. 3.56 7.68 4.16 3.52 0.11 2.00 55.03 53.65
WES Westcorp 3.57 7.66 4.56 3.10 4.26 6.96 94.89 87.87
WFI Winton Financial Corp. 3.19 8.04 4.92 3.12 0.13 1.87 57.25 55.44
WFSL Washington Federal Inc. 3.68 8.16 4.58 3.58 0.08 0.74 18.27 16.54
WHGB WHG Bancshares Corp. 3.84 7.22 3.55 3.68 0.13 2.47 64.91 63.65
</TABLE>
<PAGE>
Page 22 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- ------- --------- ------- ------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp NA NA NA 414.41 NA NA NA NA NA
REDF RedFed Bancorp Inc. 14.42 22.00 6.81 143.75 19.875 21.125 12.375 11.65 11.61
RELI Reliance Bancshares Inc. (0.14) 9.48 (1.41) 22.74 9.500 9.688 6.625 8.71 8.71
RELY Reliance Bancorp Inc. 19.43 17.35 16.86 356.46 36.625 36.875 18.625 19.92 13.57
RIVR River Valley Bancorp 64.64 92.27 50.56 23.51 17.000 17.250 13.250 14.80 14.59
ROSE TR Financial Corp. 17.90 20.2 (6.02) 580.73 33.25 35 16.563 14.54 14.54
RSLN Roslyn Bancorp Inc. (0.47) 88.77 (0.68) 930.15 23.250 24.313 15.000 14.40 14.33
RVSB Riverview Bancorp Inc. 17.18 10.56 2.17 98.13 17.750 18.000 6.005 9.75 9.41
SBFL SB of the Finger Lakes (MHC) 23.59 33.22 21.26 60.69 16.000 16.000 6.625 6.08 6.08
SBOS Boston Bancorp (The) (15.43) (13.03) 0.65 NA 41.750 44.000 28.750 40.29 40.29
SCBS Southern Community Bancshares (1.74) 17.30 0.90 20.47 18.250 19.000 13.000 12.40 12.40
SCCB S. Carolina Community Bancshrs (1.80) 0.58 5.20 12.54 22.5 25.25 15 15.99 15.99
SFED SFS Bancorp Inc. 5.79 12.99 7.01 27.64 26.875 26.875 14.750 17.73 17.73
SFFC StateFed Financial Corp. 7.00 0.51 10.23 22.61 14.750 14.750 8.250 10.04 10.04
SFIN Statewide Financial Corp. 6.20 4.04 0.02 104.27 21.500 21.625 12.625 14.34 14.32
SFSB SuburbFed Financial Corp. 8.51 21.31 2.29 59.96 50.000 50.000 19.000 23.31 23.24
SFSL Security First Corp. 8.58 10.71 12.89 163.74 20.875 21.500 11.667 8.38 8.25
SGVB SGV Bancorp Inc. 10.27 10.92 18.95 39.28 17.750 19.375 11.125 13.13 12.94
SHEN First Shenango Bancorp Inc. (7.59) 0.23 2.84 88.97 37.000 37.000 21.750 23.13 23.13
SHSB SHS Bancorp Inc. 10.79 6.69 4.60 14.65 NA NA NA NA NA
SIB Staten Island Bancorp Inc. 48.75 12.33 2.91 899.81 20.938 20.938 19.063 15.20 14.79
SISB SIS Bancorp Inc. 8.58 9.88 7.62 267.49 40.188 40.250 22.375 18.17 18.17
SKAN Skaneateles Bancorp Inc. 5.75 3.90 6.48 28.38 22.125 22.125 10.667 12.30 11.97
SKBO First Carnegie Deposit (MHC) 2.25 3.50 (4.82) 43.70 18.750 19.875 11.625 10.74 10.74
SMBC Southern Missouri Bancorp Inc. 0.17 14.37 (6.53) 34.93 20.500 20.500 14.250 16.47 16.47
SOBI Sobieski Bancorp Inc. 10.86 24.36 (2.33) 16.86 20.375 20.375 13.750 17.75 17.75
SOPN First Savings Bancorp Inc. 13.14 8.53 6.72 85.21 25.500 25.500 17.875 18.51 18.51
SOSA Somerset Savings Bank 4.32 6.30 3.02 80.18 5.000 5.938 1.984 2.15 2.15
SPBC St. Paul Bancorp Inc. 4.59 15.08 (1.58) 919.25 26.250 28.500 15.200 12.22 12.19
SRN Southern Banc Co. (0.12) 15.53 (1.19) 20.76 17.750 18.000 13.125 14.84 14.72
SSB Scotland Bancorp Inc. (9.69) (3.36) 9.21 19.38 9.938 19.250 9.875 7.73 7.73
SSFC South Street Financial Corp. (0.01) 1.64 1.61 58.45 19.000 20.000 13.750 7.85 7.85
SSM Stone Street Bancorp Inc. (1.50) 11.56 (0.14) 37.96 21.250 27.250 18.000 16.32 16.32
STFR St. Francis Capital Corp. 13.36 17.00 19.00 233.68 50.500 50.500 26.000 24.73 22.05
STSA Sterling Financial Corp. 22.12 14.28 14.87 186.41 21.750 22.500 13.625 13.59 12.56
SVRN Sovereign Bancorp Inc. 14.68 19.05 9.05 2,411.14 20.750 21.625 10.938 7.61 6.32
SWBI kouthwest Bancshares Inc. (3.69) 3.11 0.93 86.36 29.750 30.125 18.000 16.22 16.22
SWCB Sandwich Bancorp Inc. 11.65 15.55 8.95 112.16 44.000 45.000 27.250 21.63 20.88
SZB SouthFirst Bancshares Inc. 77.63 52.31 101.60 21.34 22.750 22.750 12.875 16.40 15.98
THR Three Rivers Financial Corp. 9.20 5.97 1.61 19.07 21.750 21.750 13.750 15.92 15.87
THRD TF Financial Corp. (7.84) (18.83) (3.98) 83.27 30.000 30.000 16.250 17.36 14.49
TPNZ Tappan Zee Financial Inc. 8.35 3.86 10.23 30.12 18.750 22.625 13.625 14.56 14.56
TRIC Tri-County Bancorp Inc. 4.79 14.49 (6.45) 16.34 15.000 15.000 9.000 11.84 11.84
TSBK Timberland Bancorp Inc. NA NA NA 121.09 NA NA NA NA NA
TSBS Peoples Bancorp Inc. (MHC) 6.56 4.35 0.44 388.44 45.250 45.250 15.750 12.16 10.98
TSH Teche Holding Co. 5.06 5.07 5.25 70.04 22.750 23.500 14.375 16.09 16.09
TWIN Twin City Bancorp 3.47 (0.93) 7.74 18.24 15.500 15.500 11.667 11.05 11.05
UBMT United Financial Corp. (4.51) 1.71 (7.89) 33.03 23.750 24.250 18.500 20.24 20.24
UCBC Union Community Bancorp 12.44 18.68 5.28 44.49 NA NA NA NA NA
UFRM United Federal Savings Bank 16.63 33.72 12.93 57.25 19.625 21.000 8.000 6.93 6.93
USAB USABancshares, Inc. 105.16 128.73 94.24 9.16 8.500 9.750 6.375 6.73 6.63
UTBI United Tennessee Bankshares NA NA NA 20.73 NA NA NA NA NA
VABF Virginia Beach Fed. Financial 0.24 6.36 (10.46) 99.61 16.250 16.750 8.625 8.70 8.70
WAMU Washington Mutual Inc. 10.93 9.67 (3.19) 18,471.95 63.813 72.375 42.750 20.80 19.37
WAYN Wayne Savings Bancshares (MHC) 2.03 (1.42) 2.58 68.85 29.000 33.000 15.833 10.72 10.72
WBST Webster Financial Corp. 25.19 4.09 (2.06) 853.32 66.500 66.750 35.125 27.99 24.41
WCBI Westco Bancorp Inc. 1.59 7.22 1.75 71.47 27.250 29.250 20.000 19.72 19.72
WCFB Webster City Federal SB (MHC) 1.40 0.36 0.81 42.71 20.000 22.000 12.750 10.60 10.60
WEFC Wells Financial Corp. 0.05 NA 0.02 36.25 17.875 19.000 12.875 15.13 15.13
WEHO Westwood Homestead Fin. Corp. 11.93 38.37 11.57 39.81 17.000 18.125 12.000 10.60 10.60
WES Westcorp 11.81 8.16 6.77 517.37 16.875 23.500 13.250 13.27 13.24
WFI Winton Financial Corp. 12.88 13.06 11.96 54.69 20.375 20.625 11.750 12.16 11.94
WFSL Washington Federal Inc. (2.66) 1.72 4.93 1,434.07 28.580 30.285 20.455 14.09 12.99
WHGB WHG Bancshares Corp. 5.71 1.13 7.13 25.70 18.750 18.750 13.125 14.34 14.34
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 3.04 7.36 4.47 2.90 0.15 2.23 71.39 69.96
WRNB Warren Bancorp Inc. 4.97 7.94 3.17 4.76 0.29 2.74 51.97 49.05
WSB Washington Savings Bank, FSB 2.49 8.04 5.65 2.39 0.23 1.71 71.21 68.47
WSBI Warwick Community Bancorp NA NA NA NA NA NA NA NA
WSFS WSFS Financial Corp. 3.06 7.45 4.73 2.72 1.31 2.39 57.20 36.60
WSTR WesterFed Financial Corp. 3.51 7.24 4.05 3.19 0.65 2.60 64.36 57.07
WVFC WVS Financial Corp. 3.65 7.64 4.02 3.61 0.12 1.67 44.79 42.93
WYNE Wayne Bancorp Inc. 3.50 7.28 3.84 3.44 0.23 2.28 63.28 60.79
YFCB Yonkers Financial Corp. 3.92 7.51 3.66 3.84 0.30 2.24 53.97 50.43
YFED York Financial Corp. 3.32 7.58 4.44 3.14 0.44 2.10 59.99 54.38
- ------------------------------------------------------------------------------------------------------------------------------------
Average 3.46 7.45 4.13 3.32 0.46 2.27 59.13 53.57
</TABLE>
<PAGE>
Page 23 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- ------- --------- ------- ------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 14.30 16.99 26.47 63.77 27.125 27.125 19.625 23.40 21.84
WRNB Warren Bancorp Inc. 3.35 7.06 2.82 88.49 23.000 24.125 14.750 10.52 10.52
WSB Washington Savings Bank, FSB 3.86 (1.81) 6.69 36.81 7.500 8.250 4.375 5.13 5.13
WSBI Warwick Community Bancorp NA NA NA 113.14 NA NA NA NA NA
WSFS WSFS Financial Corp. 11.61 (7.10) 2.96 250.76 20.000 21.750 10.500 6.96 6.92
WSTR WesterFed Financial Corp. 83.65 83.99 87.53 143.73 25.500 27.000 17.625 19.31 15.69
WVFC WVS Financial Corp. 5.84 7.04 (0.52) 66.45 35.250 35.250 23.500 17.75 17.75
WYNE Wayne Bancorp Inc. 10.64 23.02 10.91 48.33 26.750 27.500 14.875 16.86 16.86
YFCB Yonkers Financial Corp. 26.58 60.39 11.63 58.53 19.250 22.000 12.750 14.87 14.87
YFED York Financial Corp. 1.92 1.23 7.60 221.85 25.750 27.250 12.800 11.84 11.84
- ------------------------------------------------------------------------------------------------------------------------------------
Average 12.54 15.52 8.92 262.82 24.74 25.89 15.15 14.91 14.44
</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 Interest Interest Net Interest Noninterest Noninterest 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 (%) (%) (%) (%) (%) (%) (%) (%)
- -------------------------- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 3.35 6.65 3.41 3.24 0.22 2.73 75.34 73.70
FLKY First Lancaster Bancshares 4.76 8.34 3.65 4.69 0.00 2.71 57.70 57.70
HBBI Home Building Bancorp 3.54 7.56 4.14 3.43 0.25 2.50 68.18 65.89
HWEN Home Financial Bancorp 4.39 8.60 4.36 4.24 0.32 3.35 74.61 72.71
LONF London Financial Corp. 3.73 7.66 3.97 3.69 0.18 2.34 60.61 58.70
MBSP Mitchell Bancorp Inc. 5.10 7.71 2.76 4.95 0.01 2.41 48.69 48.54
NSLB NS&L Bancorp Inc. 3.27 6.70 3.51 3.18 0.40 2.46 68.48 64.48
PWBK Pennwood Bancorp Inc. 4.43 7.91 3.70 4.20 0.25 2.85 62.07 59.81
RELI Reliance Bancshares Inc. 5.02 7.39 2.59 4.80 0.05 3.11 64.15 63.80
SCCB S. Carolina Community Bancshrs 4.14 7.68 3.62 4.06 0.25 2.68 61.79 59.42
- ------------------------------------------------------------------------------------------------------------------------------------
Average 4.17 7.62 3.57 4.05 0.19 2.71 64.16 62.48
Median 4.27 7.67 3.64 4.13 0.24 2.70 63.11 61.81
Maximum 5.10 8.60 4.36 4.95 0.40 3.35 75.34 73.70
Minimum 3.27 6.65 2.59 3.18 0.00 2.34 48.69 48.54
Carnegie Savings Bank 3.50 7.52 4.13 3.39 0.39 3.99 105.70 106.35
Variance to the Comparable Median (0.76) (0.15) 0.49 (0.74) 0.15 1.30 42.59 44.55
</TABLE>
<PAGE>
Page 24 of 40
(Continued)
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Balance Sheet
as of the MRQ Market Data as of The Most Recent Quarter
--------------------------- -------------------------------------------------------------
Asset Loan Deposit MRQ MRQ MRQ MRQ MRQ Publicly MRQ Tangible
Growth Growth Growth Market Price Price Price Reported Publicly Rep
Rate Rate Rate Value Per Share High Low Book Value Book Value
Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($)
- -------------------------- ---------- ------- -------- ------- --------- ------- ------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Thrift Data
CSBF CSB Financial Group Inc. 0.16 (2.11) 2.67 11.44 13.500 13.500 10,000 13.09 12.32
FLKY First Lancaster Bancshares 35.33 37.59 6.14 14.42 15.938 16.375 14.500 14.92 14.92
HBBI Home Building Bancorp (4.79) 1.69 (7.69) 7.36 21.250 23.750 18.500 20.61 20.61
HWEN Home Financial Bancorp 11.46 17.08 6.24 8.13 9.250 9.250 6.375 7.95 7.95
LONF London Financial Corp. 1.62 3.80 6.52 7.78 16.750 21.000 14.000 10.23 10.23
MBSP Mitchell Bancorp Inc. 5.56 8.25 11.09 15.48 17.000 18.000 14.000 15.56 15.56
NSLB NS&L Bancorp Inc. (0.98) 12.30 5.15 12.00 18.875 19.500 13.625 16.64 16.52
PWBK Pennwood Bancorp Inc. 1.08 41.99 3.58 11.01 19.750 19.750 13.000 16.76 16.76
RELI Reliance Bancshares Inc. (0.14) 9.48 (1.41) 22.74 9.500 9.688 6.625 8.71 8.71
SCCB S. Carolina Community Bancshrs (1.80) 0.58 5.20 12.54 22.500 25,250 15.000 15.99 15.99
- ------------------------------------------------------------------------------------------------------------------------------------
Average 4.75 13.07 3.75 12.29 16.43 17.61 12.56 14.05 13.96
Median 0.62 8.87 5.18 11.72 16.88 18.75 13.81 15.24 15.24
Maximum 35.33 41.99 11.09 22.74 22.50 25.25 18.50 20.61 20.61
Minimum (4.79) (2.11) (7.69) 7.36 9.25 9.25 6.38 7.95 7.95
Carnegie Savings Bank 10.75 (2.31) 13.45
Variance to the Comparable Median 10.13(11.18) 8.28
</TABLE>
<PAGE>
Page 25 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
%CAL California Federal Bank NA NA NA NA NA NA NA NA 5031
%CCMD Chevy Chase Bank, FSB NA NA NA NA NA NA NA NA NA
AABC Access Anytime Bancorp Inc. 0.000 0.00 9.49 12.24 2.46 8.5 141.48 141.48 NA
AADV Advantage Bancorp Inc. 0.581 11.87 23.27 21.71 17.57 20.44 216.66 231.59 280
ABBK Abington Bancorp Inc. 0.964 18.18 21.39 14.19 18.53 18.86 207.71 228.27 165
ABCL Alliance Bancorp Inc. 1.630 30.86 19.42 15.88 20.45 21.09 165.44 167.39 440
ABCW Anchor BanCorp Wisconsin 0.785 14.13 21.34 19.00 17.56 19.69 285.96 290.66 551
AFBC Advance Financial Bancorp 1.561 NA NA 20.58 24.4 NA 135.22 135.22 NA
AFCB Affiliated Community Bancorp 1.622 28.65 21.51 20.83 20.56 20.79 210.11 211.19 220
AFED AFSALA Bancorp Inc. 1.445 15.05 20.83 16.71 20.18 20.83 118.50 118.50 50
AHCI Ambanc Holding Co. 1.306 13.51 63.36 14.95 24.18 49.66 131.44 131.44 185
AHM H.F. Ahmanson & Co. 1.372 24.51 20.29 12.80 18.01 17.86 311.74 365.18 7849
ALBC Albion Banc Corp. 1.003 35.59 24.71 11.26 22.14 24.15 131.50 131.50 NA
ALBK ALBANK Financial Corp. 1.468 20.82 15.63 15.51 11.05 15.48 176.11 226.72 1438
AMFC AMB Financial Corp. 1.623 22.73 24.30 16.62 15.40 15.68 112.52 112.52 NA
ANA Acadiana Bancshares Inc. 2.011 33.64 21.03 21.53 18.86 20.44 127.11 127.11 84
ANDB Andover Bancorp Inc. 1.912 27.31 16.29 15.53 15.29 15.96 191.84 191.84 280
ANE Alliance Bncp of New England 0.994 14.23 23.68 13.33 15.25 16.36 175.15 180.17 83
ASBI Ameriana Bancorp 3.012 54.46 20.83 17.47 17.14 18.97 155.91 156.02 145
ASBP ASB Financial Corp. 2.759 62.50 22.66 21.18 22.66 22.66 136.92 136.92 21
ASFC Astoria Financial Corp. 1.354 18.42 20.87 14.70 19.95 19.43 182.18 261.80 1,241
ATSB AmTrust Capital Corp. 1.391 35.09 57.50 10.62 27.64 25.22 98.06 99.07 NA
AVND Avondale Financial Corp. 0.000 0.00 NM 9.27 6.10 NM 109.36 109.36 201
BANC BankAtlantic Bancorp Inc. 0.914 838.57 28.31 12.14 13.37 14.73 179.58 205.67 NA
BDJI First Federal Bancorp. 0.000 0.00 23.26 16.80 19.23 23.26 165.15 165.15 39
BFD BostonFed Bancorp Inc. 1.287 20.97 19.59 12.32 17.54 17.54 138.36 143.56 252
BFFC Big Foot Financial Corp. 0.000 NA NA 27.59 29.69 NA 157.39 157.39 NA
BFSB Bedford Bancshares Inc. 1.915 38.73 20.60 24.41 22.16 20.60 160.01 160.01 39
BKC American Bank of Connecticut 2.944 46.61 17.56 18.75 14.50 15.23 208.00 215.10 133
BKCT Bancorp Connecticut Inc. 2.568 42.82 21.09 23.28 18.75 18.75 219.63 219.63 110
BKUNA BankUnited Financial Corp. 0.000 0.00 32.56 6.57 29.17 26.42 153.34 172.63 258
BNKU Bank United Corp. 1.401 23.39 20.96 11.53 18.13 18.42 235.63 241.74 1,593
BPLS Bank Plus Corp. 0.000 0.00 19.86 6.74 40.28 21.97 154.91 170.19 506
BTHL Bethel Bancorp 2.560 20.83 16.89 6.89 16.45 13.02 91.17 108.60 NA
BVCC Bay View Capital Corp. 1.121 32.08 24.61 13.27 99.13 33.67 248.18 298.89 640
BWFC Bank West Financial Corp. 1.641 43.42 44.32 22.62 NM 32.5 165.63 165.63 66
BYFC Broadway Financial Corp. 1.569 51.28 29.65 8.49 28.98 32.69 86.32 86.32 51
CAFI Camco Financial Corp. 2.038 29.70 19.06 16.38 16.56 15.50 174.11 187.68 194
CAPS Capital Savings Bancorp Inc. 1.038 19.51 19.76 18.06 18.07 18.80 191.43 191.43 80
CASB Cascade Financial Corp. 0.000 0.00 20.27 12.05 17.86 19.74 173.81 173.81 143
CASH First Midwest Financial Inc. 2.087 29.77 18.85 15.19 15.97 17.56 140.33 157.32 104
CATB Catskill Financial Corp. 1.803 34.12 20.88 27.89 20.17 20.88 114.66 114.66 70
CBCI Calumet Bancorp Inc. 0.000 0.00 16.09 23.89 12.85 16.16 142.42 142.42 135
CBES CBES Bancorp Inc. 1.557 33.90 24.94 23.62 29.19 21.77 150.40 150.40 55
CBK Citizens First Financial Corp. 0.000 0.00 41.00 17.96 18.98 27.70 123.49 123.49 100
CBSA Coastal Bancorp Inc. 1.455 20.44 14.73 5.68 15.28 14.67 159.65 187.82 NA
CBSB Charter Financial Inc. 0.981 26.02 33.63 35.61 35.46 26.52 229.11 255.88 104
CCFH CCF Holding Co. 2.537 469.73 NM 17.74 NM 143.33 166.41 166.41 67
CEBK Central Co-operative Bank 0.992 22.38 24.62 17.26 23.71 22.55 175.75 194.39 NA
CENB Century Bancorp Inc. 2.133 34.64 21.6 37.34 25.20 21.65 123.84 123.84 11
CENF CENFED Financial Corp. 0.873 13.86 18.92 10.67 14.32 17.05 191.77 192.04 339
CFB Commercial Federal Corp. 0.640 9.43 16.85 15.59 15.91 16.61 244.49 271.10 1,569
CFBC Community First Banking Co. 1.319 NA NA 27.83 NA NA 144.49 146.44 176
CFCP Coastal Financial Corp. 1.735 27.98 19.76 17.20 15.72 16.47 287.79 287.79 180
CFFC Community Financial Corp. 1.923 38.36 19.95 20.34 17.34 19.95 149.28 149.28 NA
CFNC Carolina Fincorp Inc. 1.401 22.37 23.46 27.65 22.53 22.53 121.80 121.80 42
CFSB CFSB Bancorp Inc. 1.641 31.66 23.40 26.09 20.89 21.83 329.39 329.39 240
CFTP Community Federal Bancorp 1.684 438.28 29.69 38.46 31.67 29.69 128.99 128.99 34
CFX CFX Corp. 2.885 112.82 28.5 25.55 47.66 39.1 298.73 309.64 976
CIBI Community Investors Bancorp 1.842 27.68 16.39 16.35 17.38 16.39 141.15 141.15 NA
CKFB CKF Bancorp Inc. 2.353 113.95 21.91 29.31 20.43 16.47 123.98 123.98 9
CLAS Classic Bancshares Inc. 1.366 31.46 29.29 20.07 22.28 23.03 133.29 156.25 NA
CMRN Cameron Financial Corp 1.427 29.17 20.44 23.82 22.30 20.44 111.13 111.13 57
CMSB Commonwealth Bancorp Inc. 1.391 27.45 28.75 14.41 19.35 19.73 152.23 192.77 732
</TABLE>
<PAGE>
Page 26 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CMSV Community Savings Bnkshrs(MHC) 2.474 81.02 36.74 26.13 29.33 33.68 224.26 224.26 273
CNIT CENIT Bancorp Inc. 1.579 30.30 23.60 17.92 18.63 23.03 245.08 267.61 NA
CNSB CNS Bancorp Inc. 1.315 41.18 35.10 30.97 35.10 35.78 127.27 127.27 27
CNY Carver Bancorp Inc. 0.000 NM 44.85 8.49 27.23 NM 100.13 104.10 115
COFI Charter One Financial 1.643 41.28 19.14 19.67 NM 26.58 282.35 302.26 4,327
CONE Conestoga Bancorp, Inc. NA 28.17 NA NA NA NA NA NA 105
COOP Cooperative Bankshares Inc. 0.000 0.00 28.99 16.17 27.78 28.57 210.97 210.97 114
CRSB Crusader Holding Corp. 0.000 NA NA 25.98 12.00 NA NM NM 44
CRZY Crazy Woman Creek Bancorp 2.336 51.28 21.68 26.90 20.39 21.96 113.86 113.86 10
CSBF CSB Financial Group Inc. 0.000 0.00 54.5 24.03 28.39 50.46 104.09 110.59 NA
CTZN CitFed Bancorp Inc. 0.697 11.16 25.43 19.40 23.47 25.43 319.86 350.24 775
CVAL Chester Valley Bancorp Inc. 1.205 31.49 26.84 24.31 24.01 25.35 275.68 275.68 107
DCBI Delphos Citizens Bancorp Inc. 1.126 0.00 22.43 38.49 24.22 22.43 143.72 143.72 21
DIBK Dime Financial Corp. 1.587 12.66 9.63 16.30 9.11 9.57 197.07 202.34 147
DIME Dime Community Bancorp Inc. 1.326 11.17 27.11 20.16 25.13 25.66 161.16 186.44 245
DME Dime Bancorp Inc. 0.534 10.71 26.73 15.94 41.58 26.73 264.94 322.96 6,000
DNFC D & N Financial Corp. 0.693 5.95 19.16 13.16 16.41 17.16 243.51 245.79 487
DSL Downey Financial Corp. 1.080 18.71 18.17 13.58 13.97 17.53 184.24 NA NA
EBI Equality Bancorp Inc. 1.518 NA NA 17.15 NA NA 153.38 153.38 87
EBSI Eagle Bancshares 2.824 66.67 19.50 13.00 17.71 23.61 165.50 165.50 546
EFBC Empire Federal Bancorp Inc. 1.727 NA NA 40.75 25.55 NA 112.02 112.02 36
EFBI Enterprise Federal Bancorp 3.226 89.29 31.00 20.43 31.00 27.68 190.07 190.18 38
EGFC Eagle Financial Corp. 1.923 71.11 30.06 15.70 17.57 38.52 222.32 274.26 406
EGLB Eagle BancGroup Inc. 0.000 0.00 66.13 14.11 56.94 47.67 118.91 118.91 52
EMLD Emerald Financial Corp. 1.302 20.34 19.20 18.06 17.92 18.22 224.90 228.00 122
EQSB Equitable Federal Savings Bank 0.000 0.00 16.71 11.24 16.90 16.53 216.05 216.05 NA
ESBK Elmira Savings Bank (The) 2.169 46.89 28.10 9.59 16.03 22.69 146.99 150.97 111
ESX Essex Bancorp Inc. 0.000 0 NM 2.86 NM NM NM NM 95
ETFS East Texas Financial Services 0.874 26.67 32.68 19.55 38.13 30.50 111.91 111.91 29
FAB FIRSTFED AMERICA BANCORP INC. 0.000 NA NA 14.92 20.70 NA 124.14 124.14 NA
FBBC First Bell Bancorp Inc. 2.119 32.52 15.73 18.19 15.22 15.35 168.38 168.38 56
FBCI Fidelity Bancorp Inc. 1.616 88.89 23.13 14.22 18.20 68.75 135.84 136.06 NA
FBCV 1ST Bancorp 0.979 14.29 23.09 11.60 17.03 15.14 129.27 131.58 90
FBER 1st Bergen Bancorp 1.032 20.25 24.53 19.11 23.07 24.53 141.32 141.32 58
FBHC Fort Bend Holding Corp. 1.882 22.68 30.80 11.71 23.10 21.91 173.05 184.62 146
FBNW FirstBank Corp. 1.418 NA NA 21.37 19.75 NA 121.99 121.99 91
FBSI First Bancshares Inc. 0.625 11.49 19.28 21.65 17.39 18.39 150.38 150.38 65
FCB Falmouth Bancorp Inc. 1.079 29.85 39.73 33.17 22.25 33.21 138.54 138.54 29
FCBF FCB Financial Corp. 2.500 54.68 22.38 23.77 17.78 23.02 168.69 168.69 NA
FCME First Coastal Corp. 0.000 0.00 3.28 12.92 14.71 3.15 132.50 132.50 68
FDEF First Defiance Financial 2.361 53.23 25.42 22.43 34.66 24.60 121.71 121.71 155
FED FirstFed Financial Corp. 0.000 0 18.9 10.15 16.34 18.55 189.52 191.16 437
FESX First Essex Bancorp Inc. 2.309 40.00 21.65 15.26 20.21 19.40 200.75 228.34 274
FFBA First Colorado Bancorp Inc. 1.809 37.7 24.78 31.07 19.97 23.57 230.92 235.66 367
FFBH First Federal Bancshares of AR 1.120 13.22 21.74 22.37 21.55 20.66 150.24 150.24 156
FFBI First Financial Bancorp Inc. 0.000 0.00 40.16 12.31 51.04 81.67 133.37 133.37 36
FFBS FFBS BanCorp Inc. 2.247 208.33 18.54 25.92 18.54 18.54 147.64 147.64 32
FFBZ First Federal Bancorp Inc. 1.244 22.73 21.43 16.97 26.79 20.45 246.17 246.44 70
FFCH First Financial Holdings Inc. 1.628 33.63 23.78 19.45 23.45 23.14 302.07 302.07 571
FFDB FirstFed Bancorp Inc. 2.105 41.67 17.21 15.34 17.46 17.21 158.33 172.48 NA
FFDF FFD Financial Corp. 1.446 23.11 37.05 32.46 43.23 17.44 134.92 134.92 24
FFED Fidelity Federal Bancorp 4.103 62.50 15.98 14.13 18.75 15.23 194.22 194.22 107
FFES First Federal of East Hartford 1.700 29.70 17.94 11.01 17.54 19.80 161.55 161.55 178
FFFC FFVA Financial Corp. 1.579 37.23 23.46 30.03 86.36 27.74 210.88 214.93 135
FFFD North Central Bancshares Inc. 1.455 20.66 18.97 32.38 16.18 18.18 142.58 142.58 NA
FFFL Fidelity Bankshares Inc. (MHC) 2.813 87.77 40.00 20.76 26.67 34.04 252.96 254.57 NA
FFHH FSF Financial Corp. 2.417 45.45 18.81 15.48 19.89 18.81 126.61 126.61 91
FFHS First Franklin Corp. 1.495 26.09 21.06 13.83 16.72 19.38 150.20 150.96 52
FFIC Flushing Financial Corp. 1.333 18.64 21.24 17.34 18.75 20.34 138.33 143.97 NA
FFKY First Federal Financial Corp. 2.517 36.49 15.24 23.74 15.89 15.03 173.69 183.73 103
FFLC FFLC Bancorp Inc. 1.846 30.00 21.43 18.24 19.50 20.31 141.92 141.92 131
FFOH Fidelity Financial of Ohio 1.612 143.82 20.44 18.16 18.89 19.52 151.22 171.52 102
FFPB First Palm Beach Bancorp Inc. 1.830 33.78 26.94 10.62 21.25 20.68 166.67 170.45 436
FFSL First Independence Corp. 2.034 34.72 20.49 12.38 20.49 20.49 123.85 123.85 27
</TABLE>
<PAGE>
Page 27 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFSX First Fed SB of Siouxland(MHC) 1.444 40.34 28.91 20.53 29.69 27.94 231.87 233.66 169
FFWC FFW Corp. 1.823 27.38 15.93 14.90 14.52 15.67 155.63 170.70 53
FFWD Wood Bancorp Inc. 1.700 31.39 26.32 31.84 23.81 23.53 248.76 248.76 47
FFYF FFY Financial Corp. 2.353 37.18 17.62 22.51 17.00 17.44 165.61 165.61 177
FGHC First Georgia Holding Inc. 3.721 0.00 23.89 19.72 17.92 19.91 237.31 255.95 85
FIBC Financial Bancorp Inc. 1.942 25.48 15.33 14.28 15.33 16.40 159.94 160.64 56
FISB First Indiana Corp. 1.722 29.41 25.34 21.89 18.34 20.50 230.75 233.46 625
FKFS First Keystone Financial 1.143 8.40 16.51 11.16 15.09 14.71 168.59 168.59 74
FKKY Frankfort First Bancorp Inc. 4.923 NM 27.08 19.81 16.93 116.07 116.74 116.74 25
FLAG FLAG Financial Corp. 1.700 34 25.00 17.08 20.00 20 187.62 187.62 108
FLFC First Liberty Financial Corp. 1.370 33.33 25.50 19.52 17.46 26.12 257.21 283.04 NA
FLGS Flagstar Bancorp Inc. 1.061 0.00 12.93 15.21 12.57 12.93 254.50 264.93 1,088
FLKY First Lancaster Bancshares 3.306 45.45 27.50 28.90 23.63 27.50 101.37 101.37 NA
FMBD First Mutual Bancorp Inc. 1.684 103.23 73.08 17.02 79.17 61.29 113.10 147.52 173
FMCO FMS Financial Corp. 0.803 9.65 15.36 14.32 15.30 15.30 220.73 223.99 281
FMSB First Mutual Savings Bank 1.088 46.44 17.50 17.00 17.01 17.17 247.31 247.31 125
FNGB First Northern Capital Corp. 2.769 48.48 20.63 17.22 18.06 19.70 155.69 155.69 216
FOBC Fed One Bancorp 1.759 44.12 26.11 22.83 25.92 25.92 199.49 208.21 134
FPRY First Financial Bancorp NA 39.66 NA NA NA NA NA NA NA
FSBI Fidelity Bancorp Inc. 1.161 20.45 18.45 12.32 18.90 18.02 180.13 180.13 NA
FSFF First SecurityFed Financial 0.000 NA NA NA NA NA NA NA 68
FSLA First Savings Bank (MHC) 1.097 36.99 35.86 33.42 35.28 37.72 345.03 377.81 214
FSNJ Bayonne Bancshares Inc. 1.225 NA NA 20.56 26.68 NA 130.53 130.53 80
FSPG First Home Bancorp Inc. 1.311 23.26 18.15 15.73 18.15 17.73 229.15 232.65 119
FSPT FirstSpartan Financial Corp. 1.379 NA NA 38.91 25.29 NA 147.36 147.36 130
FSSB First FS&LA of San Bernardino 0.000 0.00 NM 3.05 NM NM 70.36 73.03 51
FSTC First Citizens Corp. 1.000 14.42 17.02 25.12 17.39 15.38 248.83 311.28 NA
FTF Texarkana First Financial Corp 2.018 30.08 15.95 27.09 15.77 15.68 178.80 178.80 35
FTFC First Federal Capital Corp. 1.539 26.37 22.28 18.56 16.24 17.62 262.08 276.98 690
FTNB Fulton Bancorp Inc. 1.091 26.32 35.48 35.03 27.5 28.95 146.08 146.08 NA
FTSB Fort Thomas Financial Corp. 1.667 36.59 18.29 22.14 17.86 18.29 140.06 140.06 20
FWWB First SB of Washington Bancorp 1.340 21.21 21.50 24.01 19.76 20.36 166.72 180.01 NA
GAF GA Financial Inc. 2.543 36.52 17.32 18.58 14.75 16.41 125.42 126.59 206
GDVS Greater Delaware Valley (MHC) 1.190 58.06 48.79 38.01 58.17 48.79 339.51 339.51 73
GDW Golden West Financial 0.529 7.42 15.66 13.63 14.59 15.43 200.01 200.01 4,031
GFCO Glenway Financial Corp. 2.041 35.58 18.84 14.67 18.14 18.84 157.89 159.56 69
GFED Guaranty Federal Bcshs Inc. 1.869 NA NA 32.88 NA NA 109.02 109.02 79
GFSB GFS Bancorp Inc. 1.486 21.49 16.2 18.44 16.2 15.35 155.83 155.83 16
GLMR Gilmer Financial Svcs, Inc. 0.000 0.00 20.77 6.41 NM 117.71 71.05 71.05 12
GOSB GSB Financial Corp. 0.000 NA NA 31.04 28.57 NA 109.14 109.14 37
GPT GreenPoint Financial Corp. 1.781 26.88 19.97 23.25 18.34 19.32 211.40 387.68 1,831
GSB Golden State Bancorp Inc. 0.000 0 19.34 11.08 21.23 23.21 209.46 232.09 2865
GSBC Great Southern Bancorp Inc. 1.717 25.15 16.97 27.54 14.56 15.72 315.19 317.93 419
GSFC Green Street Financial Corp. 2.514 85.29 25.74 41.86 25.74 25.74 118.81 118.81 31
GSLA GS Financial Corp. 1.362 NA NA 53.94 30.24 NA 125.08 125.08 33
GTPS Great American Bancorp 1.893 81.63 43.11 24.88 35.21 43.11 114.37 114.37 NA
GUPB GFSB Bancorp Inc. 1.928 36.7 19.04 14.48 17.29 19.04 115.86 115.86 NA
HALL Hallmark Capital Corp. 0.000 0.00 16.67 11.00 16.15 16.32 144.19 144.19 77
HARB Harbor Florida Bancorp (MHC) 1.938 49.12 26.27 31.86 22.30 25.35 356.97 367.87 336
HARL Harleysville Savings Bank 1.467 20.40 14.93 14.37 15.63 14.93 210.82 210.82 54
HARS Harris Financial Inc. (MHC) 0.907 38.44 65.54 37.22 75.78 46.63 458.41 513.77 483
HAVN Haven Bancorp Inc. 1.200 24.19 20.00 11.12 18.38 20.16 194.55 195.16 593
HBBI Home Building Bancorp 1.270 26.32 21.67 17.35 24.61 20.72 114.63 114.63 13
HBEI Home Bancorp of Elgin Inc. 2.177 68.18 43.75 35.73 45.94 41.76 132.29 132.29 NA
HBFW Home Bancorp 0.565 16.39 29.24 24.11 31.58 29.00 198.40 198.40 83
HBNK Highland Bancorp Inc. 0.000 0.00 17.88 15.08 12.41 13.86 199.72 199.72 110
HBS Haywood Bancshares Inc. 2.697 35.90 14.26 18.21 8.43 14.26 128.39 132.92 34
HCBB HCB Bancshares Inc. 1.373 NA NA 18.80 52.01 NA 100.78 104.39 NA
HCBC High Country Bancorp Inc. 0.000 NA NA 23.15 NA NA 113.05 113.05 NA
HCFC Home City Financial Corp. 1.946 NA NA 23.87 15.95 NA 121.71 121.71 15
HEMT HF Bancorp Inc. 0.000 0.00 48.26 10.28 39.49 NM 130.74 155.41 NA
HFBC HopFed Bancorp Inc. 0.000 NA NA NA NA NA NA NA 29
HFFB Harrodsburg First Fin Bancorp 2.424 75.95 20.89 30.08 20.63 20.89 104.10 104.10 15
HFFC HF Financial Corp. 1.430 19.70 15.96 15.06 13.35 14.84 157.09 157.09 252
</TABLE>
<PAGE>
Page 28 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFGI Harrington Financial Group 1.011 29.03 38.31 7.08 NM 38.31 158.33 158.33 68
HFNC HFNC Financial Corp. 2.255 788.06 26.77 26.78 20.86 21.18 146.87 146.87 125
HFSA Hardin Bancorp Inc. 2.510 46.00 20.79 13.65 17.08 19.13 120.36 120.36 20
HFWA Heritage Financial Corp. 0.000 NA NA NA NA NA NA NA 146
HHFC Harvest Home Financial Corp. 3.061 62.12 21.78 13.76 25.67 21.78 123.71 123.71 NA
HIFS Hingham Instit. for Savings 1.466 29.5 16.38 19.18 16.05 16.38 199.70 199.70 63
HMLK Hemlock Federal Financial Corp 1.503 NA NA 21.89 21.16 NA 127.13 127.13 NA
HMNF HMN Financial Inc. 0.000 0.00 26.00 17.61 23.69 20.83 144.14 155.26 150
HOMF Home Federal Bancorp 1.260 18.12 20.35 22.88 16.20 17.94 260.03 267.48 252
HPBC Home Port Bancorp Inc. 2.963 44.69 15.43 23.82 14.36 15.08 226.51 226.51 50
HRBF Harbor Federal Bancorp Inc. 2.005 44.44 25.2 17.36 23.94 24.18 139.01 139.01 48
HRZB Horizon Financial Corp. 2.444 36.67 16.36 25.19 16.07 16.22 158.17 158.17 117
HTHR Hawthorne Financial Corp. 0.000 0.00 11.78 6.51 27.17 14.28 142.90 142.90 NA
HWEN Home Financial Bancorp 1.143 26.32 30.17 18.68 21.88 23.03 110.06 110.06 18
HZFS Horizon Financial Svcs Corp. 1.075 19.64 25.00 16.10 16.75 19.94 158.32 158.32 27
IBSF IBS Financial Corp. 2.222 64.74 33.33 27.05 32.14 33.33 152.54 152.54 132
IFSB Independence Federal Svgs Bank 6.130 20.18 35.46 8.31 25.49 14.97 114.64 128.75 NA
INBI Industrial Bancorp Inc. 2.835 46.6 19.17 27.68 17.63 19.17 165.55 165.55 86
INCB Indiana Community Bank SB 1.745 69.23 39.66 19.94 34.38 39.66 164.08 164.08 NA
IPSW Ipswich Savings Bank 1.174 14.20 18.92 14.30 14.19 15.48 274.70 274.70 64
ITLA ITLA Capital Corp. 0.000 0 12.5 15.21 11.68 12.5 155.51 NA NA
IWBK InterWest Bancorp Inc. 1.694 25.10 19.50 17.23 16.87 16.93 256.02 260.42 627
JOAC Joachim Bancorp Inc. 3.008 138.89 46.18 35.09 46.18 46.18 121.35 121.35 14
JSB JSB Financial Inc. 2.980 47.20 21.05 34.71 16.37 18.77 149.51 149.51 354
JSBA Jefferson Savings Bancorp 1.037 17.43 25.71 21.49 27.00 24.77 219.69 280.08 NA
JXSB Jacksonville Savings Bk (MHC) 1.277 55.02 58.75 26.69 58.75 47.00 256.27 256.27 83
JXVL Jacksonville Bancorp Inc. 2.500 36.76 14.71 20.76 15.63 14.71 141.94 141.94 NA
KFBI Klamath First Bancorp 1.391 33.33 24.73 23.57 26.14 24.73 144.47 158.08 234
KNK Kankakee Bancorp Inc. 1.362 24 17.98 14.08 17.63 17.63 127.86 135.63 114
KSAV KS Bancorp Inc. NA 63.46 NA NA NA NA NA NA 33
KSBK KSB Bancorp Inc. 0.541 5.64 14.68 15.01 12.85 14.23 198.29 207.63 NA
KYF Kentucky First Bancorp Inc. 3.636 64.10 17.86 20.67 21.48 17.63 121.47 121.47 20
LARK Landmark Bancshares Inc. 1.739 29.20 18.25 16.62 16.43 16.79 118.01 118.01 49
LARL Laurel Capital Group Inc. 1.622 25.20 16.83 21.79 18.43 16.83 206.12 206.12 50
LFBI Little Falls Bancorp Inc. 1.039 19.4 32.08 15.47 26.74 28.73 132.48 143.66 41
LFCO Life Financial Corp. 0.000 0.00 6.92 28.78 6.16 7.23 215.05 215.05 NA
LFED Leeds Federal Bankshares (MHC) 2.590 78.80 32.77 38.46 33.79 32.77 231.28 231.28 28
LISB Long Island Bancorp Inc. 1.002 27.78 33.45 23.69 26.26 27.72 258.19 260.55 1,336
LOGN Logansport Financial Corp. 2.336 42.11 17.84 25.07 14.76 18.03 130.53 130.53 14
LONF London Financial Corp. 1.574 609.30 19.06 20.52 15.25 17.73 149.07 149.07 10
LSBI LSB Financial Corp. 1.345 18.49 18.71 13.20 15.18 16.81 144.14 144.14 NA
LSBX Lawrence Savings Bank 0.000 0.00 10.56 22.64 5.65 10.44 216.65 216.65 100
LVSB Lakeview Financial 0.491 8.94 28.98 20.50 24.52 18.21 191.87 226.87 NA
LXMO Lexington B&L Financial Corp. 1.846 42.86 23.21 19.70 22.57 23.21 107.40 114.52 NA
MAFB MAF Bancorp Inc. 0.727 11.34 16.38 16.72 16.31 16.18 219.37 249.03 855
MARN Marion Capital Holdings 3.229 56.58 17.93 25.31 24.33 17.93 121.76 124.43 44
MASB MASSBANK Corp. 2.083 31.95 18.75 18.52 16.67 17.33 165.18 167.60 178
MBB MSB Bancorp Inc. 1.714 53.57 31.25 12.86 26.52 31.25 156.25 293.13 NA
MBBC Monterey Bay Bancorp Inc. 0.651 19.64 42.16 17.01 41.35 38.39 135.82 145.66 99
MBLF MBLA Financial Corp. 1.422 30.08 20.83 15.98 19.53 21.15 126.01 126.01 12
MBSP Mitchell Bancorp Inc. 2.406 66.67 27.71 42.87 31.97 27.71 106.84 106.84 6
MCBN Mid-Coast Bancorp Inc. 1.368 26.53 20.65 14.38 17.27 19.39 172.49 172.49 25
MDBK Medford Bancorp Inc. 1.834 37.66 18.97 17.45 18.80 18.25 195.19 207.44 252
MECH MECH Financial Inc. 0.000 0.00 10.82 15.79 17.52 10.69 159.15 159.15 232
MERI Meritrust Federal SB 0.889 21.08 23.72 26.08 24.92 23.72 306.90 306.90 96
METF Metropolitan Financial Corp. 0.000 0.00 22.08 12.96 16.35 20.73 326.92 355.65 281
MFBC MFB Corp. 1.265 26.89 22.78 16.55 22.40 22.58 130.40 130.40 69
MFFC Milton Federal Financial Corp. 3.810 103.45 28.13 16.32 30.29 27.16 128.99 128.99 52
MFLR Mayflower Co-operative Bank 3.092 40.76 18.35 17.64 14.38 16.48 180.82 183.64 48
MFSL Maryland Federal Bancorp 1.250 28.79 26.28 19.69 23.68 24.83 227.27 229.59 280
MIFC Mid-Iowa Financial Corp. 0.667 9.09 15.00 15.16 15.00 13.64 161.94 162.16 37
MIVI Mississippi View Holding Co. 1.662 16.84 20.48 20.77 20.05 20.26 114.24 114.24 21
MONT Montgomery Financial Corp. 1.717 NA NA 20.04 24.64 NA 107.76 107.76 31
MRKF Market Financial Corp. 1.635 NA NA 40.25 35.68 NA 113.19 113.19 9
</TABLE>
<PAGE>
Page 29 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MSBF MSB Financial Inc. 1.818 29.95 19.64 26.35 16.50 18.13 156.25 156.25 19
MSBK Mutual Savings Bank FSB 0.000 0.00 NM 9.05 113.54 113.54 137.49 137.49 NA
MWBI Midwest Bancshares Inc. 1.412 18.42 16.83 11.75 15.18 14.91 162.52 162.52 42
MWBX MetroWest Bank 1.506 32.08 15.04 18.46 15.33 15.04 251.39 251.39 175
MWFD Midwest Federal Financial 1.133 19.53 23.08 23.07 16.67 17.75 256.41 265.25 NA
MYST Mystic Financial Inc. 0.000 NA NA NA NA NA NA NA 54
NASB North American Savings Bank 1.429 14.87 15.95 21.36 12.50 13.01 251.53 259.07 247
NBN Northeast Bancorp 1.178 30.46 27.27 14.35 34.62 25.71 190.27 211.02 NA
NBSI North Bancshares Inc. 2.286 76.19 44.87 20.35 54.69 41.67 150.86 150.86 39
NEIB Northeast Indiana Bancorp 1.581 26.45 17.77 19.91 16.29 17.77 138.62 138.62 40
NHTB New Hampshire Thrift Bncshrs 2.963 37.59 16.74 13.30 14.06 15.23 165.44 191.40 120
NMSB NewMil Bancorp Inc. 2.349 39.39 20.64 14.87 20.04 20.64 159.54 159.54 134
NSLB NS&L Bancorp Inc. 2.857 75.76 26.92 20.76 31.25 26.52 105.17 105.93 20
NSSY NSS Bancorp Inc. 0.952 12.20 57.53 15.20 15.22 17.07 186.75 192.40 156
NTBK Net.B@nk Inc. 0.000 NA NA 155.30 NM NA 360.28 360.28 NA
NTMG Nutmeg Federal S&LA 1.778 6.85 41.67 10.55 31.25 27.44 191.33 191.33 51
NWEQ Northwest Equity Corp. 2.775 37.04 16.63 18.22 14.61 16.02 145.92 145.92 36
NWSB Northwest Bancorp Inc. (MHC) 1.004 38.10 37.95 33.17 36.22 37.95 358.96 404.52 831
NYB New York Bancorp Inc. 1.459 23.94 19.13 26.91 19.04 17.50 493.11 493.11 520
OCFC Ocean Financial Corp. 2.278 33.90 19.73 18.26 18.68 19.84 127.96 127.96 237
OCN Ocwen Financial Corp. 0.000 0 61.2 57.97 19.85 21.13 423.88 440.4 NA
OFCP Ottawa Financial Corp. 1.379 27.13 22.66 17.39 19.59 21.64 201.81 248.08 252
OHSL OHSL Financial Corp. 2.395 54.32 23.56 19.09 24.18 22.69 170.14 170.14 60
OSFS Ohio State Financial Services 0.000 NA NA 26.32 NA NA 97.15 97.15 14
OTFC Oregon Trail Financial Corp. 1.096 NA NA 30.76 NA NA 118.97 118.97 NA
PBCI Pamrapo Bancorp Inc. 4.148 57.47 16.27 20.38 15.34 15.52 158.17 159.20 95
PBCT People's Bank (MHC) 2.003 44.60 43.11 28.35 23.13 25.12 326.77 328.47 NA
PBHC Pathfinder Bancorp Inc. (MHC) 0.941 26.68 37.95 31.05 66.41 32.69 259.15 305.76 75
PBKB People's Bancshares Inc. 2.010 28.57 34.11 10.29 14.92 16.24 260.64 271.00 NA
PCBC Perry County Financial Corp. 1.675 34.48 20.58 23.25 22.96 20.58 120.82 120.82 NA
PDB Piedmont Bancorp Inc. 3.765 71.43 18.97 22.45 20.43 18.97 138.71 138.71 27
PEDE Great Pee Dee Bancorp 0.000 NA NA 48.65 NA NA 113.52 113.52 NA
PEEK Peekskill Financial Corp. 2.118 53.73 25.37 28.86 26.56 25.37 114.32 114.32 25
PERM Permanent Bancorp Inc. 1.323 28.69 27.71 16.66 25.19 27.25 160.86 162.75 128
PERT Perpetual Bank (MHC) 2.141 103.85 43.58 33.78 39.86 50.29 322.20 322.20 NA
PFDC Peoples Bancorp 1.872 33.34 18.80 27.08 19.58 18.80 177.36 177.36 80
PFED Park Bancorp Inc. 0.000 0.00 29.04 24.88 78.65 28.17 114.05 114.05 44
PFFB PFF Bancorp Inc. 0.000 0.00 25.32 12.66 17.41 23.78 130.43 131.76 509
PFFC Peoples Financial Corp. 3.053 NM 33.42 28.13 45.49 33.42 149.13 149.13 19
PFNC Progress Financial Corp. 0.676 10.73 25.72 14.62 20.17 19.72 287.22 342.00 200
PFSB PennFed Financial Services Inc 0.767 12.39 16.29 11.93 15.73 16.15 158.42 184.90 203
PFSL Pocahontas FS&LA (MHC) 1.994 62.5 31.78 18.92 33.18 31.34 297.66 297.66 60
PHBK Peoples Heritage Finl Group 1.900 29.34 18.23 18.90 16.31 17.88 270.36 359.85 2,560
PHFC Pittsburgh Home Financial Corp 1.333 240.35 18.18 11.83 14.52 15.79 143.77 145.51 64
PHSB Peoples Home Savings Bk (MHC) 1.223 NA NA 24.88 27.26 NA 189.25 189.25 NA
PKPS Poughkeepsie Financial Corp. 2.272 69.44 48.01 15.21 NM 58.68 183.70 183.70 261
PLSK Pulaski Savings Bank (MHC) 1.644 NA NA 21.17 41.48 NA 177.36 177.36 43
PMFI Perpetual Midwest Financial 1.043 29.70 32.30 13.87 31.25 28.47 155.49 155.49 100
PRBC Prestige Bancorp Inc. 1.053 13.04 21.11 12.13 26.39 20.65 111.24 111.24 41
PROV Provident Financial Holdings 0.000 0.00 42.73 15.24 23.50 22.38 131.65 131.65 NA
PSBK Progressive Bank Inc. 1.831 30.91 20.32 18.95 20.23 19.86 213.32 235.26 265
PSFC Peoples-Sidney Financial Corp. 1.556 NA NA 30.25 22.50 NA 113.56 113.56 17
PSFI PS Financial Inc. 3.413 NA NA 35.56 18.50 NA 95.28 95.28 15
PTRS Potters Financial Corp. 1.111 13.68 15.65 14.15 16.07 15.38 160.57 160.57 45
PULB Pulaski Bank, Svgs Bank (MHC) 2.268 115.38 60.63 56.35 55.11 53.30 420.28 420.28 NA
PULS Pulse Bancorp 3.005 40.50 15.04 15.24 15.85 14.87 186.06 186.06 61
PVFC PVF Capital Corp. 0.000 0.00 13.11 15.23 12.07 12.40 209.11 209.11 NA
PVSA Parkvale Financial Corp. 1.677 23.17 15.35 15.54 14.90 15.35 196.33 197.45 230
PWBC PennFirst Bancorp Inc. 1.882 31.81 17.71 11.07 17.71 17.71 147.12 NA NA
PWBK Pennwood Bancorp Inc. 1.800 38.1 23.26 23.33 23.81 23.81 119.33 119.33 11
QCBC Quaker City Bancorp Inc. 0.000 0.00 16.94 11.52 15.44 16.41 133.50 133.50 140
QCFB QCF Bancorp Inc. 0.000 0 13.85 25.57 12.39 13.85 145.54 145.54 NA
QCSB Queens County Bancorp Inc. 2.000 38.19 25.32 37.21 25.64 25.00 302.34 302.34 275
RARB Raritan Bancorp Inc. 2.143 30.74 18.42 16.27 17.95 18.18 215.22 218.24 90
</TABLE>
<PAGE>
Page 30 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp 0.000 NA NA NA NA NA NA NA NA
REDF RedFed Bancorp Inc. 0.000 0.00 13.80 14.24 13.08 14.10 170.60 171.19 273
RELI Reliance Bancshares Inc. 0.000 0 44.38 51.06 44.38 42.26 101.89 101.89 NA
RELY Reliance Bancorp Inc. 1.730 32.49 19.89 15.89 18.5 18.78 185.74 272.66 423
RIVR River Valley Bancorp 1.013 NA NA 16.98 17.03 NA 133.45 135.37 62
ROSE TR Financial Corp. 2.061 28.06 18.86 15.11 15.57 16.84 226.96 226.96 435
RSLN Roslyn Bancorp Inc. 1.501 NA NA 25.83 22.20 NA 148.01 148.73 NA
RVSB Riverview Bancorp Inc. 0.750 NA NA 37.30 NA NA 164.10 170.03 91
SBFL SB of the Finger Lakes (MHC) 1.176 83.33 80.95 24.50 60.71 70.83 279.61 279.61 69
SBOS Boston Bancorp (The) NA 10.89 NA NA NA NA NA NA NA
SCBS Southern Community Bancshares 1.667 34.88 20.69 28.88 20.45 20.93 145.16 145.16 NA
SCCB S. Carolina Community Bancshrs 2.977 88.57 30.71 27.81 44.79 30.71 134.46 134.46 NA
SFED SFS Bancorp Inc. 1.399 29.03 25.42 15.85 22.00 24.6 129.02 129.02 60
SFFC StateFed Financial Corp. 1.379 27.78 20.14 25.49 20.14 20.14 144.42 144.42 NA
SFIN Statewide Financial Corp. 1.903 32.28 18.21 15.10 17.52 18.21 161.26 161.49 213
SFSB SuburbFed Financial Corp. 0.675 15.38 28.20 13.68 22.35 22.78 203.24 203.85 169
SFSL Security First Corp. 1.471 29.28 20.33 24.29 19.42 20.33 259.55 263.64 155
SGVB SGV Bancorp Inc. 0.000 0.00 34.90 9.63 46.53 28.88 127.57 129.44 94
SHEN First Shenango Bancorp Inc. 1.395 25.45 19.20 23.73 20.67 19.20 185.91 185.91 101
SHSB SHS Bancorp Inc. 0.000 NA NA NA NA NA NA NA 24
SIB Staten Island Bancorp Inc. 0.000 NA NA 33.94 NA NA 131.17 134.81 581
SISB SIS Bancorp Inc. 1.662 31.52 18.33 15.43 106.94 23.33 211.89 211.89 622
SKAN Skaneateles Bancorp Inc. 1.418 23.61 18.12 11.08 18.99 17.48 160.57 165.00 119
SKBO First Carnegie Deposit (MHC) 1.579 NA NA 30.42 79.17 NA 176.91 176.91 19
SMBC Southern Missouri Bancorp Inc. 2.286 58.14 26.68 22.05 30.38 25.44 132.82 132.82 54
SOBI Sobieski Bancorp Inc. 1.488 45.45 32.58 18.76 31.62 32.58 121.13 121.13 24
SOPN First Savings Bancorp Inc. 3.826 67.2 18.4 28.29 17.97 18.4 124.26 124.26 42
SOSA Somerset Savings Bank 0.000 0.00 14.16 14.86 13.37 13.75 223.86 223.86 145
SPBC St. Paul Bancorp Inc. 1.488 25.71 19.06 20.17 18.66 19.2 219.93 220.47 1,079
SRN Southern Banc Co. 0.000 83.33 40.18 19.75 46.88 40.18 113.71 114.64 NA
SSB Scotland Bancorp Inc. 1.975 965.38 15.58 31.52 28.13 15.58 130.98 130.98 13
SSFC South Street Financial Corp. 3.200 NM 27.17 25.58 NM 26.04 159.24 159.24 37
SSM Stone Street Bancorp Inc. 2.300 512.08 22.47 36.23 25.00 22.47 122.55 122.55 18
STFR St. Francis Capital Corp. 1.258 21.46 19.87 14.63 15.45 19.10 179.94 201.81 376
STSA Sterling Financial Corp. 0 0.00 21.6 9.94 18.66 19.7 181.2 196.06 510
SVRN Sovereign Bancorp Inc. 0.380 10.53 23.15 13.73 18.16 27.71 276.78 333.28 2170
SWBI kouthwest Bancshares Inc. 2.515 51.68 21.35 23.45 20.93 21.35 196.13 196.13 93
SWCB Sandwich Bancorp Inc. 2.424 51.02 24.16 21.62 20.33 23.57 266.99 276.58 158
SZB SouthFirst Bancshares Inc. 2.743 67.57 24.58 12.91 20.25 29.56 133.38 136.89 NA
THR Three Rivers Financial Corp. 1.903 35.51 22.90 19.56 22.24 21.61 145.26 145.72 NA
THRD TF Financial Corp. 1.837 32.00 24.65 13.95 21.07 20.90 150.49 180.30 155
TPNZ Tappan Zee Financial Inc. 1.374 33.33 29.11 23.81 28.3 28.3 139.94 139.94 14
TRIC Tri-County Bancorp Inc. 2.857 43.33 18.18 18.16 19.44 18.67 118.24 118.24 19
TSBK Timberland Bancorp Inc. 0.000 NA NA NA NA NA NA NA 90
TSBS Peoples Bancorp Inc. (MHC) 0.815 42.68 70.39 60.66 63.14 52.36 353.11 391.06 151
TSH Teche Holding Co. 2.454 41.67 17.72 17.14 18.19 16.98 126.63 126.63 165
TWIN Twin City Bancorp 2.783 48.84 20.25 16.78 16.34 16.72 130.09 130.09 55
UBMT United Financial Corp. 3.704 77.24 22.13 32.04 20.45 21.95 133.40 133.40 27
UCBC Union Community Bancorp 0.000 NA NA NA NA NA NA NA 10
UFRM United Federal Savings Bank 1.329 40.35 48.82 18.82 41.05 31.69 260.65 260.65 142
USAB USABancshares, Inc. 0.000 0.00 48.08 14.25 19.53 43.10 185.74 188.54 11
UTBI United Tennessee Bankshares 0.000 NA NA NA NA NA NA NA NA
VABF Virginia Beach Fed. Financial 1.200 25.33 32.79 16.45 22.73 26.67 229.89 229.89 192
WAMU Washington Mutual Inc. 1.617 56.99 22.77 19.05 19.07 38.56 344.80 370.26 19,906
WAYN Wayne Savings Bancshares (MHC) 2.033 74.49 39.61 26.99 38.13 36.75 284.51 284.51 98
WBST Webster Financial Corp. 1.280 31.97 17.71 12.16 14.74 25.61 223.29 256.04 1286
WCBI Westco Bancorp Inc. 2.345 35.43 17.79 22.62 16.11 16.57 147.06 147.06 55
WCFB Webster City Federal SB (MHC) 3.951 123.08 31.15 44.91 31.64 31.15 191.04 191.04 21
WEFC Wells Financial Corp. 2.595 20.69 16.37 17.99 15.95 15.95 122.27 122.27 NA
WEHO Westwood Homestead Fin. Corp. 2.571 NM 26.92 29.65 NM 42.42 132.08 132.08 20
WES Westcorp 2.032 28.57 NM 13.87 12.95 14.06 148.36 148.70 NA
WFI Winton Financial Corp. 1.835 27.33 18.92 16.57 14.19 15.84 224.10 228.22 NA
WFSL Washington Federal Inc. 3.188 41.00 13.55 25.05 13.42 13.42 194.29 210.74 660
WHGB WHG Bancshares Corp. 1.730 41.82 33.04 25.36 38.54 33.64 129.01 129.01 NA
</TABLE>
<PAGE>
Page 31 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WOFC Western Ohio Financial Corp. 3.810 149.25 32.81 15.56 218.75 39.18 112.18 120.19 103
WRNB Warren Bancorp Inc. 2.237 47.54 15.92 23.85 15.71 12.7 221.01 221.01 137
WSB Washington Savings Bank, FSB 1.194 19.61 27.92 13.89 16.11 16.42 163.26 163.26 NA
WSBI Warwick Community Bancorp 0.000 NA NA NA NA NA NA NA NA
WSFS WSFS Financial Corp. 0.000 0.00 15.85 16.55 16.23 15.60 289.15 290.82 301
WSTR WesterFed Financial Corp. 1.864 35.41 19.81 13.87 17.40 19.36 133.35 164.12 367
WVFC WVS Financial Corp. 3.265 255.92 17.33 22.06 16.41 17.42 207.04 207.04 59
WYNE Wayne Bancorp Inc. 0.833 19.42 23.30 17.90 26.09 23.30 142.35 142.35 59
YFCB Yonkers Financial Corp. 1.445 20.18 18.11 17.64 16.70 17.78 130.30 130.30 68
YFED York Financial Corp. 2.075 39.67 24.57 18.76 20.21 20.71 211.68 211.68 389
- ----------------------------------------------------------------------------------------------------------------------------------
Average 1.497 46.97 24.87 20.86 24.45 24.16 177.61 185.09 360
</TABLE>
<PAGE>
Page 32 of 40
<TABLE>
<CAPTION>
Dividends Current Pricing Data as of 03/11/98 Productivity
---------------------- ----------------------------------------------------- ------------
LTM Price/ Full Time
Current Dividend Price/ Publicly Price/Tang Equivalent
Dividend Payout LTM Price/ Price/ Price/ Rep Book Publicly Rep Employees
Yield Ratio Core EPS Assets Earnings LTM EPS Value Book Value Most
Ticker Short Name ($) (%) (x) (%) (x) (x) (%) (%) Recent Qtr
- ----------------------- ---------------------- ----------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Thrift Data
CSBF CSB Financial Group Inc. 0.000 0.00 54.50 24.03 28.39 50.46 104.09 110.59 NA
FLKY First Lancaster Bancshares 3.306 45.45 27.50 28.90 23.63 27.50 101.37 101.37 NA
HBBI Home Building Bancorp 1.270 26.32 21.67 17.35 24.61 20.72 114.63 114.63 13
HWEN Home Financial Bancorp 1.143 26.32 30.17 18.68 21.88 23.03 110.06 110.06 18
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. 2,406 66.67 27.71 42.87 31.97 27.71 106.84 106.84 6
NSLB NS&L Bancorp Inc. 2,857 75.76 26.92 20.76 31.25 26.52 105.17 105.93 20
PWBK Pennwood Bancorp Inc. 1.800 38.10 23.26 23.33 23.81 23.81 119.33 119.33 11
RELI Reliance Bancshares Inc. 0.000 0.00 44.38 51.06 44.38 42.26 101.89 101.89 NA
SCCB S. Carolina Community Bancshrs 2.977 88.57 30.71 27.81 44.79 30.71 134.46 134.46 NA
- ----------------------------------------------------------------------------------------------------------------------------------
Average 1.73 97.65 30.59 27.53 29.00 29.05 114.69 115.42 13
Median 1.69 41.78 27.61 23.68 26.50 27.01 108.45 110.33 12
Maximum 3.31 609.30 54.50 51.06 44.79 50.46 149.07 149.07 20
Minimum 0.00 0.00 19.06 17.35 15.25 17.73 101.37 101.37 6
Carnegie Savings Bank (54) 99 6
Variance to the Comparable Median (496) (341) (6)
<PAGE>
Page 33 of 40
Exhibit 7
Selected Data on all Public Thrifts
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core 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 233,058 209,082 NA NA 87,873 74,987 NA NA
%CCMD Chevy Chase Bank, FSB 47,452 (25,156) NA NA 16,605 (7,804) NA NA
AABC Access Anytime Bancorp Inc. 1,533 1,420 1.12 1.25 1,319 1,288 1.05 1.08
AADV Advantage Bancorp Inc. 11,539 10,166 2.96 3.37 3,304 2,739 0.81 0.98
ABBK Abington Bancorp Inc. 4,378 3,874 0.97 1.10 1,103 921 0.23 0.28
ABCL Alliance Bancorp Inc. 10,249 11,102 1.39 1.28 2,844 2,659 0.31 0.33
ABCW Anchor BanCorp Wisconsin 19,934 18,371 1.91 2.07 5,657 5,070 0.52 0.58
AFBC Advance Financial Bancorp 914 874 NA NA 216 199 0.19 0.21
AFCB Affiliated Community Bancorp 11,856 11,468 1.72 1.78 3,028 2,758 0.41 0.45
AFED AFSALA Bancorp Inc. 1,231 1,231 0.93 0.93 311 311 0.24 0.24
AHCI Ambanc Holding Co. (2,644) (2,964) 0.29 0.37 736 523 0.14 0.19
AHM H.F. Ahmanson & Co. 413,782 367,894 3.16 3.59 99,494 97,257 0.87 0.89
ALBC Albion Banc Corp. 328 323 0.43 0.44 93 93 0.12 0.12
ALBK ALBANK Financial Corp. 43,424 43,072 3.14 3.17 15,288 15,145 1.10 1.11
AMFC AMB Financial Corp. 1,023 657 0.71 1.10 253 144 0.16 0.28
ANA Acadiana Bancshares Inc. 2,612 2,530 1.04 1.07 694 648 0.27 0.29
ANDB Andover Bancorp Inc. 13,206 12,932 2.44 2.49 3,468 3,355 0.63 0.65
ANE Alliance Bncp of New England 2,017 1,392 0.85 1.23 563 222 0.13 0.33
ASBI Ameriana Bancorp 3,656 3,322 1.02 1.12 994 913 0.28 0.31
ASBP ASB Financial Corp. 1,030 1,027 0.64 0.64 254 251 0.16 0.16
ASFC Astoria Financial Corp. 68,464 63,885 2.83 3.04 20,931 19,404 0.68 0.74
ATSB AmTrust Capital Corp. 288 125 0.25 0.57 64 (4) (0.01) 0.13
AVND Avondale Financial Corp. (12,482) (11,208) (3.22) (3.59 ) 2,130 (197) (0.06) 0.62
BANC BankAtlantic Bancorp Inc. 27,769 14,516 0.51 0.98 8,178 3,170 0.10 0.27
BDJI First Federal Bancorp. 731 725 0.86 0.86 214 214 0.26 0.26
BFD BostonFed Bancorp Inc. 7,055 6,331 1.11 1.24 1,735 1,481 0.26 0.31
BFFC Big Foot Financial Corp. NA NA NA NA 453 304 0.13 0.20
BFSB Bedford Bancshares Inc. 1,618 1,609 1.42 1.42 384 382 0.33 0.33
BKC American Bank of Connecticut 7,940 6,882 2.94 3.39 2,104 1,622 0.69 0.89
BKCT Bancorp Connecticut Inc. 5,896 5,256 0.96 1.08 1,481 1,299 0.24 0.27
BKUNA BankUnited Financial Corp. 7,975 6,712 0.43 0.53 1,975 1,250 0.07 0.12
BNKU Bank United Corp. 79,738 69,990 2.18 2.48 20,430 19,948 0.62 0.63
BPLS Bank Plus Corp. 12,653 14,038 0.73 0.66 1,780 4,860 0.25 0.09
BTHL Bethel Bancorp 1,435 1,141 0.74 0.96 302 263 0.16 0.19
BVCC Bay View Capital Corp. 14,021 19,137 1.45 1.06 1,191 4,639 0.35 0.09
BWFC Bank West Financial Corp. 1,121 852 0.33 0.45 (60) 204 0.07 (0.02)
BYFC Broadway Financial Corp. 351 370 0.43 0.39 102 29 0.02 0.11
CAFI Camco Financial Corp. 5,626 4,585 1.39 1.71 1,286 838 0.26 0.40
CAPS Capital Savings Bancorp Inc. 2,367 2,262 1.17 1.23 627 567 0.29 0.32
CASB Cascade Financial Corp. 2,529 2,450 0.74 0.76 773 683 0.19 0.21
CASH First Midwest Financial Inc. 3,679 3,446 1.22 1.31 989 915 0.33 0.36
CATB Catskill Financial Corp. 3,799 3,764 0.85 0.85 958 946 0.22 0.22
CBCI Calumet Bancorp Inc. 7,987 8,028 2.30 2.29 2,475 2,625 0.76 0.72
CBES CBES Bancorp Inc. 1,118 976 1.03 1.18 211 152 0.16 0.22
CBK Citizens First Financial Corp. 1,889 1,275 0.50 0.74 665 173 0.07 0.27
CBSA Coastal Bancorp Inc. 11,563 11,492 2.24 2.25 2,789 2,789 0.54 0.54
CBSB Charter Financial Inc. 5,268 4,190 0.97 1.23 990 923 0.21 0.23
CCFH CCF Holding Co. 131 (140) (0.20) 0.15 (6) (29) (0.05) (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. 1,628 1,633 4.34 4.33 350 350 0.93 0.93
CENF CENFED Financial Corp. 14,360 12,929 2.18 2.42 4,300 4,099 0.69 0.72
CFB Commercial Federal Corp. 68,105 66,785 2.04 2.07 17,760 16,991 0.52 0.54
CFBC Community First Banking Co. 1,944 1,837 NA NA 916 916 NA NA
CFCP Coastal Financial Corp. 6,140 5,153 1.05 1.26 1,627 1,243 0.25 0.33
CFFC Community Financial Corp. 1,875 1,883 1.46 1.46 539 538 0.42 0.42
CFNC Carolina Fincorp Inc. 1,361 1,303 0.73 0.76 330 316 0.18 0.19
CFSB CFSB Bancorp Inc. 10,673 9,945 1.25 1.34 2,769 2,532 0.32 0.35
CFTP Community Federal Bancorp 2,813 2,819 0.64 0.64 660 665 0.15 0.15
CFX CFX Corp. 18,934 25,992 1.07 0.78 3,944 6,833 0.28 0.16
CIBI Community Investors Bancorp 923 923 1.06 1.06 212 212 0.25 0.25
CKFB CKF Bancorp Inc. 1,117 843 0.97 1.29 214 214 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 2,401 2,380 0.96 0.96 535 523 0.22 0.22
CMSB Commonwealth Bancorp Inc. 16,369 11,209 0.70 1.02 4,018 2,578 0.17 0.26
</TABLE>
<PAGE>
Page 34 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core 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) 5,443 5,010 0.99 1.08 1,549 1,151 0.23 0.31
CNIT CENIT Bancorp Inc. 5,610 5,468 3.22 3.30 1,709 1,596 0.95 1.02
CNSB CNS Bancorp Inc. 776 783 0.52 0.51 192 192 0.13 0.13
CNY Carver Bancorp Inc. (460) 745 0.34 (0.21 ) 301 179 0.08 0.14
COFI Charter One Financial 148,409 206,040 3.18 2.29 (12,035) 47,286 0.76 (0.19)
CONE Conestoga Bancorp, Inc. 3,210 2,607 0.58 0.71 742 334 0.07 0.16
COOP Cooperative Bankshares Inc. 2,234 2,201 0.69 0.70 581 556 0.17 0.18
CRSB Crusader Holding Corp. NA NA NA NA 665 597 0.28 0.31
CRZY Crazy Woman Creek Bancorp 719 728 0.79 0.78 190 192 0.21 0.21
CSBF CSB Financial Group Inc. 234 219 0.25 0.27 97 92 0.11 0.12
CTZN CitFed Bancorp Inc. 27,332 27,274 2.03 2.03 7,435 7,373 0.55 0.55
CVAL Chester Valley Bancorp Inc. 3,153 2,990 1.36 1.44 831 781 0.36 0.38
DCBI Delphos Citizens Bancorp Inc. 1,729 1,729 0.95 0.95 400 400 0.22 0.22
DIBK Dime Financial Corp. 16,748 16,621 3.14 3.16 4,429 4,407 0.83 0.83
DIME Dime Community Bancorp Inc. 11,878 11,313 0.89 0.94 2,887 2,801 0.23 0.24
DME Dime Bancorp Inc. 121,714 121,806 1.12 1.12 21,499 26,613 0.22 0.18
DNFC D & N Financial Corp. 14,325 12,851 1.37 1.53 3,730 3,167 0.34 0.40
DSL Downey Financial Corp. 45,234 43,495 1.63 1.69 14,037 13,743 0.52 0.53
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. NA NA NA NA 408 408 0.17 0.17
EFBI Enterprise Federal Bancorp 2,195 1,987 1.00 1.12 516 501 0.24 0.25
EGFC Eagle Financial Corp. 7,889 10,305 1.73 1.35 4,898 4,841 0.73 0.74
EGLB Eagle BancGroup Inc. 509 363 0.31 0.43 109 55 0.05 0.09
EMLD Emerald Financial Corp. 6,141 5,832 1.12 1.18 1,592 1,456 0.27 0.30
EQSB Equitable Federal Savings Bank 2,306 2,277 1.78 1.80 568 556 0.43 0.44
ESBK Elmira Savings Bank (The) 946 766 1.05 1.30 331 174 0.24 0.46
ESX Essex Bancorp Inc. 214 45 (1.19) (1.21 ) (491) (491) (0.85) (0.85)
ETFS East Texas Financial Services 728 675 0.70 0.75 144 130 0.14 0.15
FAB FIRSTFED AMERICA BANCORP INC. 1,718 5,523 NA NA 1,933 1,497 0.19 0.24
FBBC First Bell Bancorp Inc. 7,575 7,413 1.20 1.23 1,818 1,818 0.31 0.31
FBCI Fidelity Bancorp Inc. 1,068 2,990 1.07 0.36 977 963 0.34 0.34
FBCV 1ST Bancorp 1,968 1,300 1.18 1.80 437 358 0.33 0.40
FBER 1st Bergen Bancorp 2,117 2,117 0.79 0.79 553 553 0.21 0.21
FBHC Fort Bend Holding Corp. 2,045 1,441 0.69 0.97 492 292 0.14 0.23
FBNW FirstBank Corp. 1,391 862 NA NA 458 259 0.14 0.25
FBSI First Bancshares Inc. 1,870 1,799 0.83 0.87 493 495 0.23 0.23
FCB Falmouth Bancorp Inc. 910 774 0.56 0.67 348 284 0.20 0.25
FCBF FCB Financial Corp. 4,813 4,934 1.43 1.39 1,718 1,596 0.42 0.45
FCME First Coastal Corp. 6,138 5,903 4.31 4.48 334 263 0.19 0.24
FDEF First Defiance Financial 5,407 5,263 0.60 0.62 945 927 0.11 0.11
FED FirstFed Financial Corp. 23,100 22,676 2.11 2.15 6,613 6,238 0.58 0.61
FESX First Essex Bancorp Inc. 9,713 8,714 1.12 1.25 2,390 2,371 0.30 0.30
FFBA First Colorado Bancorp Inc. 19,914 18,932 1.16 1.22 5,894 5,028 0.31 0.36
FFBH First Federal Bancshares of AR 5,551 5,295 1.15 1.21 1,311 1,311 0.29 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. 1,922 1,822 1.05 1.10 373 357 0.20 0.21
FFCH First Financial Holdings Inc. 14,845 14,519 2.17 2.23 3,872 3,876 0.55 0.55
FFDB FirstFed Bancorp Inc. 1,705 1,705 1.38 1.38 413 413 0.34 0.34
FFDF FFD Financial Corp. 1,607 772 0.56 1.19 164 164 0.12 0.12
FFED Fidelity Federal Bancorp 1,760 1,652 0.61 0.64 408 329 0.10 0.13
FFES First Federal of East Hartford 5,575 6,155 2.23 2.02 1,585 1,621 0.58 0.57
FFFC FFVA Financial Corp. 6,436 7,598 1.62 1.37 530 1,890 0.39 0.11
FFFD North Central Bancshares Inc. 3,917 3,755 1.16 1.21 1,096 934 0.29 0.34
FFFL Fidelity Bankshares Inc. (MHC) 6,313 5,362 0.80 0.94 2,010 1,493 0.22 0.30
FFHH FSF Financial Corp. 3,148 3,110 1.10 1.10 746 736 0.26 0.26
FFHS First Franklin Corp. 1,688 1,556 1.27 1.38 489 436 0.36 0.40
FFIC Flushing Financial Corp. 8,531 8,204 1.13 1.18 2,325 2,174 0.30 0.32
FFKY First Federal Financial Corp. 6,156 6,080 1.46 1.48 1,452 1,452 0.35 0.35
FFLC FFLC Bancorp Inc. 3,754 3,551 0.91 0.96 953 953 0.25 0.25
FFOH Fidelity Financial of Ohio 4,876 4,679 0.85 0.89 1,231 1,141 0.21 0.23
FFPB First Palm Beach Bancorp Inc. 9,397 7,279 1.42 1.85 2,314 1,356 0.26 0.45
FFSL First Independence Corp. 726 726 0.72 0.72 180 180 0.18 0.18
</TABLE>
<PAGE>
Page 35 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFSX First Fed SB of Siouxland(MHC) 3,383 3,266 1.15 1.19 817 790 0.27 0.28
FFWC FFW Corp. 1,787 1,749 1.24 1.26 479 462 0.33 0.34
FFWD Wood Bancorp Inc. 2,358 2,125 0.76 0.85 579 502 0.18 0.21
FFYF FFY Financial Corp. 7,761 7,664 1.93 1.95 1,940 1,906 0.49 0.50
FGHC First Georgia Holding Inc. 1,755 1,473 0.45 0.54 465 465 0.15 0.15
FIBC Financial Bancorp Inc. 2,611 2,783 1.68 1.57 700 700 0.42 0.42
FISB First Indiana Corp. 17,744 14,397 1.10 1.36 4,986 3,673 0.28 0.38
FKFS First Keystone Financial 2,694 2,433 1.06 1.19 672 589 0.25 0.29
FKKY Frankfort First Bancorp Inc. 233 948 0.60 0.14 381 381 0.24 0.24
FLAG FLAG Financial Corp. 2,049 1,632 0.80 1.00 502 405 0.20 0.25
FLFC First Liberty Financial Corp. 9,556 9,900 1.26 1.23 3,624 2,776 0.35 0.46
FLGS Flagstar Bancorp Inc. 21,539 21,539 1.75 1.75 6,194 6,194 0.45 0.45
FLKY First Lancaster Bancshares 508 508 0.55 0.55 146 146 0.16 0.16
FMBD First Mutual Bancorp Inc. 986 820 0.26 0.31 198 130 0.04 0.06
FMCO FMS Financial Corp. 5,581 5,540 2.27 2.28 1,394 1,389 0.57 0.57
FMSB First Mutual Savings Bank 4,519 4,428 1.05 1.07 1,168 1,194 0.28 0.27
FNGB First Northern Capital Corp. 6,036 5,745 0.63 0.66 1,606 1,502 0.17 0.18
FOBC Fed One Bancorp 3,242 3,214 1.35 1.36 800 791 0.34 0.34
FPRY First Financial Bancorp 1,313 985 1.09 1.45 257 141 0.15 0.28
FSBI Fidelity Bancorp Inc. 2,764 2,705 1.68 1.72 668 661 0.41 0.41
FSFF First SecurityFed Financial NA NA NA NA 861 849 NA NA
FSLA First Savings Bank (MHC) 9,295 9,753 1.22 1.16 2,535 2,535 0.31 0.31
FSNJ Bayonne Bancshares Inc. 2,698 3,914 NA NA 1,135 1,135 0.13 0.13
FSPG First Home Bancorp Inc. 4,718 4,603 1.68 1.72 1,152 1,123 0.41 0.42
FSPT FirstSpartan Financial Corp. 5,909 5,906 NA NA 1,759 1,759 0.43 0.43
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 0.41 0.46
FTF Texarkana First Financial Corp 3,021 2,963 1.74 1.77 756 712 0.41 0.44
FTFC First Federal Capital Corp. 17,390 13,718 1.40 1.77 4,733 3,332 0.34 0.48
FTNB Fulton Bancorp Inc. 1,286 1,036 0.62 0.76 323 241 0.15 0.20
FTSB Fort Thomas Financial Corp. 1,185 1,185 0.82 0.82 306 306 0.21 0.21
FWWB First SB of Washington Bancorp 12,759 12,046 1.25 1.32 3,205 2,939 0.31 0.34
GAF GA Financial Inc. 8,317 7,859 1.09 1.15 2,276 1,964 0.28 0.32
GDVS Greater Delaware Valley (MHC) 2,037 2,037 0.62 0.62 410 410 0.13 0.13
GDW Golden West Financial 354,138 348,810 6.04 6.13 93,480 92,161 1.60 1.62
GFCO Glenway Financial Corp. 2,402 2,402 1.04 1.04 651 651 0.27 0.27
GFED Guaranty Federal Bcshs Inc. 2,070 2,012 NA NA 595 583 NA NA
GFSB GFS Bancorp Inc. 1,172 1,114 1.08 1.14 286 226 0.21 0.27
GLMR Gilmer Financial Svcs, Inc. 23 130 0.68 0.12 (54) (57) (0.32) (0.30)
GOSB GSB Financial Corp. 756 729 NA NA 295 242 0.11 0.14
GPT GreenPoint Financial Corp. 147,648 142,737 1.80 1.86 36,755 36,267 0.48 0.49
GSB Golden State Bancorp Inc. 104,614 123,100 1.80 1.50 28,911 34,108 0.49 0.41
GSBC Great Southern Bancorp Inc. 13,419 12,339 1.51 1.63 3,620 3,181 0.39 0.44
GSFC Green Street Financial Corp. 2,826 2,826 0.68 0.68 689 689 0.17 0.17
GSLA GS Financial Corp. 1,396 1,404 NA NA 529 529 0.17 0.17
GTPS Great American Bancorp 873 872 0.49 0.49 261 261 0.15 0.15
GUPB GFSB Bancorp Inc. 866 863 1.09 1.09 232 231 0.30 0.30
HALL Hallmark Capital Corp. 2,761 2,697 0.93 0.95 714 707 0.24 0.24
HARB Harbor Florida Bancorp (MHC) 14,322 13,797 2.75 2.85 4,095 3,628 0.72 0.81
HARL Harleysville Savings Bank 3,435 3,442 2.01 2.01 820 820 0.48 0.48
HARS Harris Financial Inc. (MHC) 17,771 12,608 0.37 0.52 2,739 2,129 0.06 0.08
HAVN Haven Bancorp Inc. 11,083 11,184 1.25 1.24 3,027 3,015 0.34 0.34
HBBI Home Building Bancorp 329 316 1.09 1.14 69 64 0.22 0.24
HBEI Home Bancorp of Elgin Inc. 2,843 2,725 0.42 0.44 612 612 0.10 0.10
HBFW Home Bancorp 2,907 2,883 1.21 1.22 665 641 0.27 0.28
HBNK Highland Bancorp Inc. 6,123 4,737 2.00 2.58 1,740 1,667 0.69 0.72
HBS Haywood Bancshares Inc. 1,953 1,953 1.56 1.56 827 827 0.66 0.66
HCBB HCB Bancshares Inc. 579 575 NA NA 171 163 0.07 0.07
HCBC High Country Bancorp Inc. NA NA NA NA 157 157 NA NA
HCFC Home City Financial Corp. NA NA NA NA 243 243 0.29 0.29
HEMT HF Bancorp Inc. 350 2,190 0.36 0.04 727 695 0.11 0.11
HFBC HopFed Bancorp Inc. 1,575 1,575 NA NA 477 477 NA NA
HFFB Harrodsburg First Fin Bancorp 1,475 1,475 0.79 0.79 360 360 0.20 0.20
HFFC HF Financial Corp. 6,092 5,671 1.84 1.98 1,622 1,573 0.53 0.55
</TABLE>
<PAGE>
Page 36 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HFGI Harrington Financial Group 988 1,022 0.31 0.31 (609) (25) (0.01) (0.19)
HFNC HFNC Financial Corp. 10,768 8,329 0.53 0.67 2,792 1,822 0.11 0.17
HFSA Hardin Bancorp Inc. 814 746 0.92 1.00 220 195 0.25 0.28
HFWA Heritage Financial Corp. NA NA NA NA 646 282 NA NA
HHFC Harvest Home Financial Corp. 594 589 0.66 0.66 124 120 0.14 0.14
HIFS Hingham Instit. for Savings 2,659 2,659 2.00 2.00 681 681 0.51 0.51
HMLK Hemlock Federal Financial Corp 944 1,594 NA NA 416 416 0.22 0.22
HMNF HMN Financial Inc. 5,579 4,462 1.13 1.41 1,248 915 0.23 0.31
HOMF Home Federal Bancorp 9,397 8,299 1.56 1.77 2,687 2,164 0.39 0.49
HPBC Home Port Bancorp Inc. 3,297 3,226 1.75 1.79 874 831 0.45 0.47
HRBF Harbor Federal Bancorp Inc. 1,627 1,565 0.95 0.99 414 352 0.21 0.25
HRZB Horizon Financial Corp. 8,140 8,019 1.10 1.11 2,074 2,151 0.29 0.28
HTHR Hawthorne Financial Corp. 9,617 11,165 1.66 1.37 1,625 3,162 0.45 0.18
HWEN Home Financial Bancorp 335 247 0.29 0.38 79 46 0.06 0.10
HZFS Horizon Financial Svcs Corp. 709 568 0.67 0.84 214 158 0.18 0.25
IBSF IBS Financial Corp. 5,793 5,793 0.54 0.54 1,540 1,540 0.14 0.14
IFSB Independence Federal Svgs Bank 1,393 590 0.46 1.09 211 91 0.07 0.16
INBI Industrial Bancorp Inc. 5,113 5,113 1.03 1.03 1,380 1,380 0.28 0.28
INCB Indiana Community Bank SB 488 488 0.52 0.52 140 140 0.15 0.15
IPSW Ipswich Savings Bank 2,212 1,813 0.72 0.88 616 491 0.19 0.24
ITLA ITLA Capital Corp. 12,477 12,477 1.57 1.57 3,369 3,369 0.42 0.42
IWBK InterWest Bancorp Inc. 20,507 17,859 2.18 2.51 5,161 4,042 0.49 0.63
JOAC Joachim Bancorp Inc. 264 264 0.36 0.36 60 60 0.09 0.09
JSB JSB Financial Inc. 29,398 26,164 2.55 2.86 8,554 6,677 0.64 0.82
JSBA Jefferson Savings Bancorp 9,697 9,416 1.05 1.09 2,359 2,217 0.23 0.25
JXSB Jacksonville Savings Bk (MHC) 976 773 0.40 0.50 184 109 0.06 0.10
JXVL Jacksonville Bancorp Inc. 3,371 3,371 1.36 1.36 783 783 0.32 0.32
KFBI Klamath First Bancorp 8,791 8,791 0.93 0.93 2,146 2,146 0.22 0.22
KNK Kankakee Bancorp Inc. 3,012 2,952 1.96 2.00 747 711 0.48 0.50
KSAV KS Bancorp Inc. 1,221 1,221 1.30 1.30 252 252 0.27 0.27
KSBK KSB Bancorp Inc. 1,549 1,501 1.26 1.30 424 404 0.34 0.36
KYF Kentucky First Bancorp Inc. 993 983 0.77 0.78 207 204 0.16 0.16
LARK Landmark Bancshares Inc. 2,458 2,234 1.26 1.37 596 560 0.33 0.35
LARL Laurel Capital Group Inc. 2,925 2,933 1.27 1.27 672 723 0.31 0.29
LFBI Little Falls Bancorp Inc. 1,728 1,557 0.60 0.67 457 457 0.18 0.18
LFCO Life Financial Corp. 12,700 13,263 2.60 2.49 5,005 5,568 0.81 0.73
LFED Leeds Federal Bankshares (MHC) 3,429 3,429 0.66 0.66 819 819 0.16 0.16
LISB Long Island Bancorp Inc. 50,668 41,890 1.79 2.16 13,182 10,466 0.45 0.57
LOGN Logansport Financial Corp. 1,232 1,249 0.96 0.95 360 367 0.30 0.29
LONF London Financial Corp. 411 381 0.80 0.86 121 117 0.24 0.25
LSBI LSB Financial Corp. 1,566 1,408 1.59 1.77 434 385 0.43 0.49
LSBX Lawrence Savings Bank 8,112 8,029 1.80 1.82 3,804 3,757 0.83 0.84
LVSB Lakeview Financial 6,981 4,373 0.88 1.40 1,266 1,274 0.26 0.26
LXMO Lexington B&L Financial Corp. 727 725 0.70 0.70 186 187 0.18 0.18
MAFB MAF Bancorp Inc. 37,948 37,405 2.35 2.38 9,256 8,980 0.57 0.59
MARN Marion Capital Holdings 2,812 2,812 1.52 1.52 503 503 0.28 0.28
MASB MASSBANK Corp. 10,167 9,412 2.56 2.77 2,656 2,371 0.64 0.72
MBB MSB Bancorp Inc. 4,337 4,347 1.12 1.12 1,230 1,183 0.31 0.33
MBBC Monterey Bay Bancorp Inc. 1,766 1,613 0.51 0.56 409 376 0.12 0.13
MBLF MBLA Financial Corp. 1,792 1,821 1.35 1.33 474 465 0.35 0.36
MBSP Mitchell Bancorp Inc. 523 523 0.60 0.60 109 109 0.13 0.13
MCBN Mid-Coast Bancorp Inc. 456 427 1.84 1.96 129 116 0.49 0.55
MDBK Medford Bancorp Inc. 11,390 10,981 2.30 2.39 2,757 3,028 0.64 0.58
MECH MECH Financial Inc. 13,076 12,906 2.46 2.49 2,003 1,852 0.35 0.38
MERI Meritrust Federal SB 2,716 2,716 3.32 3.32 652 652 0.79 0.79
METF Metropolitan Financial Corp. 5,803 5,426 0.77 0.82 1,810 1,712 0.25 0.26
MFBC MFB Corp. 2,028 2,011 1.18 1.19 502 486 0.29 0.30
MFFC Milton Federal Financial Corp. 1,275 1,221 0.56 0.58 291 291 0.13 0.13
MFLR Mayflower Co-operative Bank 1,399 1,264 1.41 1.57 403 334 0.37 0.45
MFSL Maryland Federal Bancorp 9,523 9,085 1.37 1.45 2,526 2,350 0.35 0.38
MIFC Mid-Iowa Financial Corp. 1,528 1,384 0.80 0.88 351 351 0.20 0.20
MIVI Mississippi View Holding Co. 744 732 0.94 0.95 177 175 0.24 0.24
MONT Montgomery Financial Corp. 721 721 NA NA 200 200 0.13 0.13
MRKF Market Financial Corp. 575 575 NA NA 147 147 0.12 0.12
</TABLE>
<PAGE>
Page 37 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MSBF MSB Financial Inc. 1,123 1,038 0.84 0.91 308 263 0.21 0.25
MSBK Mutual Savings Bank FSB 495 86 0.02 0.12 145 (4) - 0.03
MWBI Midwest Bancshares Inc. 1,265 1,122 1.01 1.14 311 286 0.26 0.28
MWBX MetroWest Bank 7,555 7,509 0.53 0.53 1,899 1,892 0.13 0.13
MWFD Midwest Federal Financial 2,930 2,247 1.30 1.69 777 544 0.32 0.45
MYST Mystic Financial Inc. NA NA NA NA 236 228 NA NA
NASB North American Savings Bank 12,085 9,866 4.39 5.38 3,133 2,776 1.24 1.40
NBN Northeast Bancorp 1,704 1,646 0.66 0.70 356 574 0.22 0.13
NBSI North Bancshares Inc. 636 597 0.39 0.42 120 115 0.08 0.08
NEIB Northeast Indiana Bancorp 2,085 2,085 1.21 1.21 586 586 0.33 0.33
NHTB New Hampshire Thrift Bncshrs 2,771 2,528 1.21 1.33 737 653 0.32 0.36
NMSB NewMil Bancorp Inc. 2,758 2,775 0.66 0.66 705 819 0.20 0.17
NSLB NS&L Bancorp Inc. 426 418 0.65 0.66 94 94 0.14 0.14
NSSY NSS Bancorp Inc. 5,928 2,063 0.73 2.46 1,677 1,422 0.59 0.69
NTBK Net.B@nk Inc. NA NA NA NA (1,518) (1,518) NA -
NTMG Nutmeg Federal S&LA 657 486 0.27 0.41 210 174 0.07 0.09
NWEQ Northwest Equity Corp. 1,020 979 1.30 1.35 285 269 0.35 0.37
NWSB Northwest Bancorp Inc. (MHC) 19,410 19,692 0.42 0.42 4,941 5,016 0.11 0.11
NYB New York Bancorp Inc. 52,939 48,253 2.15 2.35 11,992 11,907 0.54 0.54
OCFC Ocean Financial Corp. 13,825 13,911 1.78 1.77 3,480 3,566 0.48 0.47
OCN Ocwen Financial Corp. 78,932 27,114 0.48 1.39 22,934 (512) (0.01) 0.37
OFCP Ottawa Financial Corp. 7,527 7,183 1.28 1.34 2,119 1,906 0.33 0.37
OHSL OHSL Financial Corp. 2,007 1,928 1.56 1.62 465 416 0.34 0.38
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. 5,071 4,838 1.66 1.74 1,233 1,072 0.38 0.44
PBCT People's Bank (MHC) 92,400 53,595 0.88 1.51 25,200 13,305 0.22 0.41
PBHC Pathfinder Bancorp Inc. (MHC) 1,854 1,593 0.56 0.65 238 137 0.05 0.08
PBKB People's Bancshares Inc. 5,131 2,448 0.70 1.47 1,328 519 0.16 0.40
PCBC Perry County Financial Corp. 886 886 1.16 1.16 200 200 0.26 0.26
PDB Piedmont Bancorp Inc. 1,491 1,491 0.56 0.56 363 362 0.13 0.13
PEDE Great Pee Dee Bancorp NA NA NA NA 46 176 NA NA
PEEK Peekskill Financial Corp. 1,993 1,993 0.67 0.67 461 461 0.16 0.16
PERM Permanent Bancorp Inc. 2,631 2,609 1.20 1.22 705 671 0.31 0.33
PERT Perpetual Bank (MHC) 1,979 2,277 1.50 1.30 635 628 0.41 0.41
PFDC Peoples Bancorp 4,283 4,283 1.25 1.25 1,025 1,025 0.30 0.30
PFED Park Bancorp Inc. 1,543 1,507 0.65 0.67 143 182 0.08 0.06
PFFB PFF Bancorp Inc. 14,229 13,420 0.77 0.82 4,752 4,070 0.24 0.28
PFFC Peoples Financial Corp. 684 674 0.49 0.49 122 122 0.09 0.09
PFNC Progress Financial Corp. 3,872 2,956 0.69 0.90 979 729 0.16 0.22
PFSB PennFed Financial Services Inc 10,685 10,615 1.12 1.13 2,742 2,672 0.28 0.29
PFSL Pocahontas FS&LA (MHC) 2,371 2,336 1.42 1.44 579 561 0.33 0.34
PHBK Peoples Heritage Finl Group 73,401 71,987 2.54 2.59 19,997 19,952 0.71 0.71
PHFC Pittsburgh Home Financial Corp 2,111 1,825 0.99 1.14 571 487 0.26 0.31
PHSB Peoples Home Savings Bk (MHC) 1,638 1,545 NA NA 468 430 0.17 0.18
PKPS Poughkeepsie Financial Corp. 2,429 2,991 0.22 0.18 (953) (512) (0.04) (0.08)
PLSK Pulaski Savings Bank (MHC) 1,121 1,121 NA NA 221 221 0.11 0.11
PMFI Perpetual Midwest Financial 1,931 1,722 0.89 1.01 438 406 0.21 0.23
PRBC Prestige Bancorp Inc. 784 770 0.90 0.92 154 138 0.16 0.18
PROV Provident Financial Holdings 4,899 2,599 0.55 1.05 1,153 465 0.10 0.25
PSBK Progressive Bank Inc. 8,632 8,442 2.15 2.20 2,122 2,083 0.53 0.54
PSFC Peoples-Sidney Financial Corp. 1,146 1,146 NA NA 338 338 0.20 0.20
PSFI PS Financial Inc. 1,557 1,609 NA NA 418 417 0.19 0.19
PTRS Potters Financial Corp. 1,157 1,135 1.15 1.17 274 242 0.25 0.28
PULB Pulaski Bank, Svgs Bank (MHC) 1,915 1,672 0.80 0.91 473 421 0.20 0.22
PULS Pulse Bancorp 5,705 5,640 1.77 1.79 1,362 1,362 0.42 0.42
PVFC PVF Capital Corp. 5,039 4,773 1.73 1.83 1,301 1,232 0.45 0.47
PVSA Parkvale Financial Corp. 10,591 10,591 2.02 2.02 2,732 2,732 0.52 0.52
PWBC PennFirst Bancorp Inc. 5,447 5,442 1.08 1.08 1,415 1,407 0.27 0.27
PWBK Pennwood Bancorp Inc. 458 471 0.86 0.84 112 83 0.16 0.21
QCBC Quaker City Bancorp Inc. 5,917 5,715 1.24 1.28 1,559 1,536 0.33 0.34
QCFB QCF Bancorp Inc. 2,487 2,487 2.04 2.04 654 654 0.57 0.57
QCSB Queens County Bancorp Inc. 23,264 22,920 1.58 1.60 5,395 5,112 0.37 0.39
RARB Raritan Bancorp Inc. 3,908 3,847 1.52 1.54 989 986 0.39 0.39
</TABLE>
<PAGE>
Page 38 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp NA NA NA NA 2,811 2,760 NA NA
REDF RedFed Bancorp Inc. 10,433 10,683 1.44 1.41 2,865 3,123 0.41 0.38
RELI Reliance Bancshares Inc. 499 485 0.20 0.21 129 126 0.05 0.05
RELY Reliance Bancorp Inc. 18,089 17,080 1.86 1.97 4,887 4,806 0.49 0.50
RIVR River Valley Bancorp 1,076 814 NA NA 315 282 0.26 0.29
ROSE TR Financial Corp. 34,728 31,016 1.75 1.96 9,518 8,368 0.47 0.53
RSLN Roslyn Bancorp Inc. 33,390 38,242 NA NA 9,425 8,001 0.20 0.24
RVSB Riverview Bancorp Inc. 3,313 3,226 NA NA 1,073 1,058 NA NA
SBFL SB of the Finger Lakes (MHC) 847 737 0.21 0.24 260 228 0.06 0.07
SBOS Boston Bancorp (The) 37,152 18,104 3.40 6.98 14,315 5,073 0.95 2.69
SCBS Southern Community Bancshares 848 848 0.87 0.86 216 216 0.22 0.22
SCCB S. Carolina Community Bancshrs 462 462 0.70 0.70 70 70 0.12 0.12
SFED SFS Bancorp Inc. 1,068 1,032 0.90 0.93 279 243 0.23 0.26
SFFC StateFed Financial Corp. 1,096 1,096 0.72 0.72 273 273 0.18 0.18
SFIN Statewide Financial Corp. 5,462 5,461 1.27 1.27 1,382 1,382 0.33 0.33
SFSB SuburbFed Financial Corp. 2,790 2,258 1.68 2.08 713 530 0.39 0.53
SFSL Security First Corp. 9,000 9,029 1.07 1.07 2,356 2,329 0.28 0.28
SGVB SGV Bancorp Inc. 1,344 1,095 0.48 0.58 234 225 0.09 0.09
SHEN First Shenango Bancorp Inc. 4,586 4,576 2.24 2.24 1,064 1,071 0.52 0.52
SHSB SHS Bancorp Inc. (188) 288 NA NA 147 147 NA NA
SIB Staten Island Bancorp Inc. 14,549 31,233 NA NA (2,449) 14,066 NA NA
SISB SIS Bancorp Inc. 11,418 14,530 2.10 1.65 593 3,996 0.61 0.09
SKAN Skaneateles Bancorp Inc. 1,662 1,609 1.09 1.13 383 378 0.26 0.26
SKBO First Carnegie Deposit (MHC) 937 830 NA NA 127 92 0.04 0.06
SMBC Southern Missouri Bancorp Inc. 1,378 1,301 0.82 0.86 293 268 0.16 0.18
SOBI Sobieski Bancorp Inc. 497 497 0.66 0.66 127 127 0.17 0.17
SOPN First Savings Bancorp Inc. 5,005 5,005 1.25 1.25 1,298 1,298 0.32 0.32
SOSA Somerset Savings Bank 5,967 5,833 0.34 0.35 1,522 1,514 0.09 0.09
SPBC St. Paul Bancorp Inc. 49,058 49,092 1.41 1.40 12,453 12,294 0.36 0.36
SRN Southern Banc Co. 495 495 0.42 0.42 103 103 0.09 0.09
SSB Scotland Bancorp Inc. 1,113 1,106 0.65 0.65 158 158 0.09 0.09
SSFC South Street Financial Corp. 2,029 1,973 0.46 0.48 (208) (236) (0.06) (0.05)
SSM Stone Street Bancorp Inc. 1,639 1,639 0.89 0.89 386 386 0.20 0.20
STFR St. Francis Capital Corp. 12,359 11,878 2.24 2.33 3,798 2,724 0.52 0.72
STSA Sterling Financial Corp. 9,636 8,858 1.14 1.25 2,543 2,515 0.33 0.33
SVRN Sovereign Bancorp Inc. 77,640 92,116 0.91 0.76 30,065 28,764 0.28 0.29
SWBI kouthwest Bancshares Inc. 4,111 4,118 1.49 1.49 1,045 1,165 0.42 0.38
SWCB Sandwich Bancorp Inc. 4,860 4,746 2.39 2.45 1,428 1,376 0.68 0.71
SZB SouthFirst Bancshares Inc. 618 742 0.89 0.74 250 266 0.29 0.27
THR Three Rivers Financial Corp. 827 784 1.01 1.07 203 186 0.24 0.26
THRD TF Financial Corp. 4,874 4,143 1.06 1.25 1,078 929 0.27 0.31
TPNZ Tappan Zee Financial Inc. 1,032 989 0.70 0.72 254 233 0.17 0.18
TRIC Tri-County Bancorp Inc. 901 924 0.77 0.75 218 221 0.18 0.18
TSBK Timberland Bancorp Inc. NA NA NA NA 804 752 NA NA
TSBS Peoples Bancorp Inc. (MHC) 7,462 5,562 0.61 0.82 1,564 1,564 0.17 0.17
TSH Teche Holding Co. 3,897 3,717 1.15 1.20 913 910 0.28 0.28
TWIN Twin City Bancorp 1,078 892 0.71 0.86 276 210 0.17 0.22
UBMT United Financial Corp. 1,491 1,479 1.22 1.23 402 402 0.33 0.33
UCBC Union Community Bancorp 886 1,121 NA NA NA NA NA NA
UFRM United Federal Savings Bank 1,803 1,180 0.37 0.57 350 179 0.06 0.11
USAB USABancshares, Inc. 231 206 0.26 0.29 128 122 0.15 0.16
UTBI United Tennessee Bankshares NA NA NA NA 195 195 NA NA
VABF Virginia Beach Fed. Financial 3,741 2,968 0.61 0.75 1,099 838 0.17 0.22
WAMU Washington Mutual Inc. 481,778 799,978 3.15 1.86 237,900 228,459 0.90 0.94
WAYN Wayne Savings Bancshares (MHC) 1,889 1,754 0.77 0.83 461 418 0.18 0.20
WBST Webster Financial Corp. 33,798 48,902 3.53 2.44 14,805 13,868 0.99 1.06
WCBI Westco Bancorp Inc. 4,708 4,388 1.63 1.75 1,204 1,084 0.41 0.45
WCFB Webster City Federal SB (MHC) 1,364 1,364 0.65 0.65 346 346 0.16 0.16
WEFC Wells Financial Corp. 2,209 2,154 1.13 1.16 555 530 0.28 0.29
WEHO Westwood Homestead Fin. Corp. 883 1,389 0.52 0.33 3 344 NA -
WES Westcorp 36,788 (6,707) (0.26) 1.40 10,079 (6,859) (0.26) 0.38
WFI Winton Financial Corp. 3,429 2,863 1.44 1.72 960 799 0.40 0.48
WFSL Washington Federal Inc. 108,033 106,939 2.02 2.04 27,084 26,600 0.50 0.51
WHGB WHG Bancshares Corp. 752 762 0.56 0.55 153 153 0.12 0.12
</TABLE>
<PAGE>
Page 39 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
--------------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core 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. 1,482 1,712 0.80 0.67 60 397 0.20 0.03
WRNB Warren Bancorp Inc. 7,285 5,793 1.46 1.83 1,493 1,394 0.35 0.37
WSB Washington Savings Bank, FSB 2,293 1,359 0.30 0.51 575 258 0.06 0.13
WSBI Warwick Community Bancorp NA NA NA NA 694 649 NA NA
WSFS WSFS Financial Corp. 16,389 16,188 1.27 1.29 3,872 3,747 0.30 0.31
WSTR WesterFed Financial Corp. 7,241 7,021 1.30 1.33 2,098 2,022 0.36 0.37
WVFC WVS Financial Corp. 3,728 3,752 2.12 2.11 996 1,030 0.58 0.56
WYNE Wayne Bancorp Inc. 1,954 1,955 1.03 1.03 442 443 0.23 0.23
YFCB Yonkers Financial Corp. 3,093 3,044 1.07 1.09 808 729 0.26 0.29
YFED York Financial Corp. 11,154 9,312 1.02 1.21 2,911 2,175 0.23 0.31
- ------------------------------------------------------------------------------------------------------------------------------------
Average 12,579 12,630.16 1.19 1.26 3,446 3,283 0.30 0.32
</TABLE>
<PAGE>
Page 40 of 40
Exhibit 7
Selected Data on all Public Thrifts
<TABLE>
<CAPTION>
Income
-----------------------------------------------------------------------------------------
Net Income Core Income Core EPS EPS Net Income Core Income Core EPS EPS
Ticker Short Name LTM LTM LTM LTM MRQ MRQ MRQ MRQ
- ------------------------------- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Corporate Thrift Data
CSBF CSB Financial Group Inc. 234 219 0.25 0.27 97 92 0.11 0.12
FLKY First Lancaster Bancshares 508 508 0.55 0.55 146 146 0.16 0.16
HBBI Home Building Bancorp 329 316 1.09 1.14 69 64 0.22 0.24
HWEN Home Financial Bancorp 335 247 0.29 0.38 79 46 0.06 0.10
LONF London Financial Corp. 411 381 0.80 0.86 121 117 0.24 0.25
MBSP Mitchell Bancorp Inc. 523 523 0.60 0.60 109 109 0.13 0.13
NSLB NS&L Bancorp Inc. 426 418 0.65 0.66 94 94 0.14 0.14
PWBK Pennwood Bancorp Inc. 458 471 0.86 0.84 112 83 0.16 0.21
RELI Reliance Bancshares Inc. 499 485 0.20 0.21 129 126 0.05 0.05
SCCB S. Carolina Community Bancshrs 462 462 0.70 0.70 70 70 0.12 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Average 419 403 0.60 0.62 103 95 0.14 0.15
Median 442 440 0.63 0.63 103 93 0.14 0.14
Maximum 523 523 1.09 1.14 146 146 0.24 0.25
Minimum 234 219 0.20 0.21 69 46 0.05 0.05
Carnegie Savings Bank (54) 99
Variance to the Comparable Median (496) (341)
</TABLE>
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout 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. 10.63 12.68 2.46 8.50 9.49 2.53 141.48 141.48 12.24 0.00 0.00
AADV Advantage Bancorp Inc. 68.88 222.86 17.57 20.44 23.27 21.26 216.66 231.59 21.71 0.58 11.87
ABBK Abington Bancorp Inc. 20.75 75.47 18.53 18.86 21.39 22.55 207.71 228.27 14.19 0.96 18.18
ABCL Alliance Bancorp Inc. 27.00 216.60 20.45 21.09 19.42 21.77 165.44 167.39 15.88 1.63 30.86
ABCW Anchor BanCorp Wisconsin 40.75 368.86 17.56 19.69 21.34 19.59 285.96 290.66 19.00 0.79 14.13
AFBC Advance Financial Bancorp 20.50 22.23 24.40 NA NA 26.97 135.22 135.22 20.58 1.56 NA
AFCB Affiliated Community Bancorp 37.00 240.63 20.56 20.79 21.51 22.56 210.11 211.19 20.83 1.62 28.65
AFED AFSALA Bancorp Inc. 19.38 26.71 20.18 20.83 20.83 20.18 118.50 118.50 16.71 1.45 15.05
AHCI Ambanc Holding Co. 18.38 79.13 24.18 49.66 63.36 32.81 131.44 131.44 14.95 1.31 13.51
AHM H.F. Ahmanson & Co. 64.13 6,980.01 18.01 17.86 20.29 18.43 311.74 365.18 12.80 1.37 24.51
ALBC Albion Banc Corp. 10.63 7.97 22.14 24.15 24.71 22.14 131.50 131.50 11.26 1.00 35.59
ALBK ALBANK Financial Corp. 49.06 633.25 11.05 15.48 15.63 11.15 176.11 226.72 15.51 1.47 20.82
AMFC AMB Financial Corp. 17.25 16.63 15.40 15.68 24.30 26.95 112.52 112.52 16.62 1.62 22.73
ANA Acadiana Bancshares Inc. 21.88 58.12 18.86 20.44 21.03 20.25 127.11 127.11 21.53 2.01 33.64
ANDB Andover Bancorp Inc. 39.75 205.43 15.29 15.96 16.29 15.77 191.84 191.84 15.53 1.91 27.31
ANE Alliance Bncp of New England 20.13 32.93 15.25 16.36 23.68 38.70 175.15 180.17 13.33 0.99 14.23
ASBI Ameriana Bancorp 21.25 68.67 17.14 18.97 20.83 18.97 155.91 156.02 17.47 3.01 54.46
ASBP ASB Financial Corp. 14.50 23.72 22.66 22.66 22.66 22.66 136.92 136.92 21.18 2.76 62.50
ASFC Astoria Financial Corp. 59.06 1,547.32 19.95 19.43 20.87 21.71 182.18 261.80 14.70 1.35 18.42
ATSB AmTrust Capital Corp. 14.38 7.34 27.64 25.22 57.50 NM 98.06 99.07 10.62 1.39 35.09
AVND Avondale Financial Corp. 15.13 50.27 6.10 NM NM NM 109.36 109.36 9.27 0.00 0.00
BANC BankAtlantic Bancorp Inc. 14.44 368.15 13.37 14.73 28.31 36.10 179.58 205.67 12.14 0.91 838.57
BDJI First Federal Bancorp. 20.00 19.97 19.23 23.26 23.26 19.23 165.15 165.15 16.80 0.00 0.00
BFD BostonFed Bancorp Inc. 21.75 120.07 17.54 17.54 19.59 20.91 138.36 143.56 12.32 1.29 20.97
BFFC Big Foot Financial Corp. 23.75 59.68 29.69 NA NA 45.67 157.39 157.39 27.59 0.00 NA
BFSB Bedford Bancshares Inc. 29.25 33.42 22.16 20.60 20.60 22.16 160.01 160.01 24.41 1.92 38.73
BKC American Bank of Connecticut 51.63 119.82 14.50 15.23 17.56 18.70 208.00 215.10 18.75 2.94 46.61
BKCT Bancorp Connecticut Inc. 20.25 103.11 18.75 18.75 21.09 21.09 219.63 219.63 23.28 2.57 42.82
BKUNA BankUnited Financial Corp. 14.00 198.93 29.17 26.42 32.56 50.00 153.34 172.63 6.57 0.00 0.00
BNKU Bank United Corp. 45.69 1,443.54 18.13 18.42 20.96 18.42 235.63 241.74 11.53 1.40 23.39
BPLS Bank Plus Corp. 14.50 280.82 40.28 21.97 19.86 14.50 154.91 170.19 6.74 0.00 0.00
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. 35.69 719.02 99.13 33.67 24.61 25.49 248.18 298.89 13.27 1.12 32.08
BWFC Bank West Financial Corp. 14.63 38.37 NM 32.50 44.32 52.23 165.63 165.63 22.62 1.64 43.42
BYFC Broadway Financial Corp. 12.75 11.01 28.98 32.69 29.65 159.38 86.32 86.32 8.49 1.57 51.28
CAFI Camco Financial Corp. 26.50 85.25 16.56 15.50 19.06 25.48 174.11 187.68 16.38 2.04 29.70
CAPS Capital Savings Bancorp Inc. 23.13 43.73 18.07 18.80 19.76 19.94 191.43 191.43 18.06 1.04 19.51
CASB Cascade Financial Corp. 15.00 50.92 17.86 19.74 20.27 19.74 173.81 173.81 12.05 0.00 0.00
CASH First Midwest Financial Inc. 23.00 61.91 15.97 17.56 18.85 17.42 140.33 157.32 15.19 2.09 29.77
CATB Catskill Financial Corp. 17.75 82.19 20.17 20.88 20.88 20.17 114.66 114.66 27.89 1.80 34.12
CBCI Calumet Bancorp Inc. 37.00 116.24 12.85 16.16 16.09 12.17 142.42 142.42 23.89 0.00 0.00
</TABLE>
Page 1 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CBES CBES Bancorp Inc. 25.69 26.02 29.19 21.77 24.94 40.14 150.40 150.40 23.62 1.56 33.90
CBK Citizens First Financial Corp20.50 49.14 18.98 27.70 41.00 73.21 123.49 123.49 17.96 0.00 0.00
CBSA Coastal Bancorp Inc. 33.00 165.29 15.28 14.67 14.73 15.28 159.65 187.82 5.68 1.46 20.44
CBSB Charter Financial Inc. 32.63 136.30 35.46 26.52 33.63 38.84 229.11 255.88 35.61 0.98 26.02
CCFH CCF Holding Co. 21.50 19.40 NM 143.33 NM NM 166.41 166.41 17.74 2.54 469.73
CEBK Central Co-operative Bank 32.25 63.37 23.71 22.55 24.62 23.71 175.75 194.39 17.26 0.99 22.38
CENB Century Bancorp Inc. 93.75 38.19 25.20 21.65 21.60 25.20 123.84 123.84 37.34 2.13 34.64
CENF CENFED Financial Corp. 41.25 247.18 14.32 17.05 18.92 14.95 191.77 192.04 10.67 0.87 13.86
CFB Commercial Federal Corp. 34.38 1,385.45 15.91 16.61 16.85 16.53 244.49 271.10 15.59 0.64 9.43
CFBC Community First Banking Co. 45.50 109.82 NA NA NA NA 144.49 146.44 27.83 1.32 NA
CFCP Coastal Financial Corp. 20.75 96.99 15.72 16.47 19.76 20.75 287.79 287.79 17.20 1.74 27.98
CFFC Community Financial Corp. 29.13 37.27 17.34 19.95 19.95 17.34 149.28 149.28 20.34 1.92 38.36
CFNC Carolina Fincorp Inc. 17.13 32.63 22.53 22.53 23.46 23.78 121.80 121.80 27.65 1.40 22.37
CFSB CFSB Bancorp Inc. 29.25 222.52 20.89 21.83 23.40 22.85 329.39 329.39 26.09 1.64 31.66
CFTP Community Federal Bancorp 19.00 87.95 31.67 29.69 29.69 31.67 128.99 128.99 38.46 1.68 438.28
CFX CFX Corp. 30.50 734.17 47.66 39.10 28.50 27.23 298.73 309.64 25.55 2.89 112.82
CIBI Community Investors Bancorp 17.38 15.68 17.38 16.39 16.39 17.38 141.15 141.15 16.35 1.84 27.68
CKFB CKF Bancorp Inc. 21.25 18.42 20.43 16.47 21.91 20.43 123.98 123.98 29.31 2.35 113.95
CLAS Classic Bancshares Inc. 20.50 26.65 22.28 23.03 29.29 22.28 133.29 156.25 20.07 1.37 31.46
CMRN Cameron Financial Corp 19.63 50.28 22.30 20.44 20.44 22.30 111.13 111.13 23.82 1.43 29.17
CMSB Commonwealth Bancorp Inc. 20.13 326.97 19.35 19.73 28.75 29.60 152.23 192.77 14.41 1.39 27.45
CMSV Community Savings Bnkshrs(MHC36.38 185.33 29.33 33.68 36.74 39.54 224.26 224.26 26.13 2.47 81.02
CNIT CENIT Bancorp Inc. 76.00 119.65 18.63 23.03 23.60 20.00 245.08 267.61 17.92 1.58 30.30
CNSB CNS Bancorp Inc. 18.25 30.17 35.10 35.78 35.10 35.10 127.27 127.27 30.97 1.32 41.18
CNY Carver Bancorp Inc. 15.25 35.29 27.23 NM 44.85 47.66 100.13 104.10 8.49 0.00 NM
COFI Charter One Financial 60.88 3,886.80 NM 26.58 19.14 20.02 282.35 302.26 19.67 1.64 41.28
CONE Conestoga Bancorp, Inc. NA NA NA NA NA NA NA NA NA NA 28.17
COOP Cooperative Bankshares Inc. 20.00 59.69 27.78 28.57 28.99 29.41 210.97 210.97 16.17 0.00 0.00
CRSB Crusader Holding Corp. 14.88 52.06 12.00 NA NA 13.28 NM NM 25.98 0.00 NA
CRZY Crazy Woman Creek Bancorp 17.13 16.35 20.39 21.96 21.68 20.39 113.86 113.86 26.90 2.34 51.28
CSBF CSB Financial Group Inc. 13.63 11.44 28.39 50.46 54.50 30.97 104.09 110.59 24.03 0.00 0.00
CTZN CitFed Bancorp Inc. 51.63 674.59 23.47 25.43 25.43 23.47 319.86 350.24 19.40 0.70 11.16
CVAL Chester Valley Bancorp Inc. 36.50 79.48 24.01 25.35 26.84 25.35 275.68 275.68 24.31 1.21 31.49
DCBI Delphos Citizens Bancorp Inc.21.31 41.47 24.22 22.43 22.43 24.22 143.72 143.72 38.49 1.13 0.00
DIBK Dime Financial Corp. 30.25 156.21 9.11 9.57 9.63 9.11 197.07 202.34 16.30 1.59 12.66
DIME Dime Community Bancorp Inc. 24.13 300.07 25.13 25.66 27.11 26.22 161.16 186.44 20.16 1.33 11.17
DME Dime Bancorp Inc. 29.94 3,483.53 41.58 26.73 26.73 34.02 264.94 322.96 15.94 0.53 10.71
DNFC D & N Financial Corp. 26.25 238.85 16.41 17.16 19.16 19.30 243.51 245.79 13.16 0.69 5.95
DSL Downey Financial Corp. 29.63 792.64 13.97 17.53 18.17 14.24 184.24 NA 13.58 1.08 18.71
EBI Equality Bancorp Inc. 15.81 39.31 NA NA NA NA 153.38 153.38 17.15 1.52 NA
EBSI Eagle Bancshares 21.25 121.52 17.71 23.61 19.50 17.71 165.50 165.50 13.00 2.82 66.67
EFBC Empire Federal Bancorp Inc. 17.38 45.04 25.55 NA NA 25.55 112.02 112.02 40.75 1.73 NA
EFBI Enterprise Federal Bancorp 31.00 61.56 31.00 27.68 31.00 32.29 190.07 190.18 20.43 3.23 89.29
</TABLE>
Page 2 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
EGFC Eagle Financial Corp. 52.00 338.71 17.57 38.52 30.06 17.81 222.32 274.26 15.70 1.92 71.11
EGLB Eagle BancGroup Inc. 20.50 24.14 56.94 47.67 66.13 102.50 118.91 118.91 14.11 0.00 0.00
EMLD Emerald Financial Corp. 21.50 109.06 17.92 18.22 19.20 19.91 224.90 228.00 18.06 1.30 20.34
EQSB Equitable Federal Savings Ban29.75 36.20 16.90 16.53 16.71 17.30 216.05 216.05 11.24 0.00 0.00
ESBK Elmira Savings Bank (The) 29.50 21.88 16.03 22.69 28.10 30.73 146.99 150.97 9.59 2.17 46.89
ESX Essex Bancorp Inc. 5.19 5.49 NM NM NM NM NM NM 2.86 0.00 0.00
ETFS East Texas Financial Services22.88 23.48 38.13 30.50 32.68 40.85 111.91 111.91 19.55 0.87 26.67
FAB FIRSTFED AMERICA BANCORP INC.19.88 173.05 20.70 NA NA 26.15 124.14 124.14 14.92 0.00 NA
FBBC First Bell Bancorp Inc. 18.88 122.89 15.22 15.35 15.73 15.22 168.38 168.38 18.19 2.12 32.52
FBCI Fidelity Bancorp Inc. 24.75 69.67 18.20 68.75 23.13 18.20 135.84 136.06 14.22 1.62 88.89
FBCV 1ST Bancorp 27.25 29.69 17.03 15.14 23.09 20.64 129.27 131.58 11.60 0.98 14.29
FBER 1st Bergen Bancorp 19.38 55.50 23.07 24.53 24.53 23.07 141.32 141.32 19.11 1.03 20.25
FBHC Fort Bend Holding Corp. 21.25 35.59 23.10 21.91 30.80 37.95 173.05 184.62 11.71 1.88 22.68
FBNW FirstBank Corp. 19.75 39.18 19.75 NA NA 35.27 121.99 121.99 21.37 1.42 NA
FBSI First Bancshares Inc. 16.00 34.97 17.39 18.39 19.28 17.39 150.38 150.38 21.65 0.63 11.49
FCB Falmouth Bancorp Inc. 22.25 32.37 22.25 33.21 39.73 27.81 138.54 138.54 33.17 1.08 29.85
FCBF FCB Financial Corp. 32.00 123.60 17.78 23.02 22.38 19.05 168.69 168.69 23.77 2.50 54.68
FCME First Coastal Corp. 14.13 19.20 14.71 3.15 3.28 18.59 132.50 132.50 12.92 0.00 0.00
FDEF First Defiance Financial 15.25 130.05 34.66 24.60 25.42 34.66 121.71 121.71 22.43 2.36 53.23
FED FirstFed Financial Corp. 39.88 422.18 16.34 18.55 18.90 17.19 189.52 191.16 10.15 0.00 0.00
FESX First Essex Bancorp Inc. 24.25 182.76 20.21 19.40 21.65 20.21 200.75 228.34 15.26 2.31 40.00
FFBA First Colorado Bancorp Inc. 28.75 483.24 19.97 23.57 24.78 23.19 230.92 235.66 31.07 1.81 37.70
FFBH First Federal Bancshares of A25.00 122.40 21.55 20.66 21.74 21.55 150.24 150.24 22.37 1.12 13.22
FFBI First Financial Bancorp Inc. 24.50 10.18 51.04 81.67 40.16 NM 133.37 133.37 12.31 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. 22.50 35.44 26.79 20.45 21.43 28.13 246.17 246.44 16.97 1.24 22.73
FFCH First Financial Holdings Inc.51.59 348.81 23.45 23.14 23.78 23.45 302.07 302.07 19.45 1.63 33.63
FFDB FirstFed Bancorp Inc. 23.75 27.43 17.46 17.21 17.21 17.46 158.33 172.48 15.34 2.11 41.67
FFDF FFD Financial Corp. 20.75 29.98 43.23 17.44 37.05 43.23 134.92 134.92 32.46 1.45 23.11
FFED Fidelity Federal Bancorp 9.75 30.50 18.75 15.23 15.98 24.38 194.22 194.22 14.13 4.10 62.50
FFES First Federal of East Hartfor40.00 108.23 17.54 19.80 17.94 17.24 161.55 161.55 11.01 1.70 29.70
FFFC FFVA Financial Corp. 38.00 174.07 86.36 27.74 23.46 24.36 210.88 214.93 30.03 1.58 37.23
FFFD North Central Bancshares Inc.22.00 71.86 16.18 18.18 18.97 18.97 142.58 142.58 32.38 1.46 20.66
FFFL Fidelity Bankshares Inc. (MHC32.00 217.12 26.67 34.04 40.00 36.36 252.96 254.57 20.76 2.81 87.77
FFHH FSF Financial Corp. 20.69 63.01 19.89 18.81 18.81 19.89 126.61 126.61 15.48 2.42 45.45
FFHS First Franklin Corp. 26.75 31.89 16.72 19.38 21.06 18.58 150.20 150.96 13.83 1.50 26.09
FFIC Flushing Financial Corp. 24.00 188.75 18.75 20.34 21.24 20.00 138.33 143.97 17.34 1.33 18.64
FFKY First Federal Financial Corp.22.25 91.86 15.89 15.03 15.24 15.89 173.69 183.73 23.74 2.52 36.49
FFLC FFLC Bancorp Inc. 19.50 73.01 19.50 20.31 21.43 19.50 141.92 141.92 18.24 1.85 30.00
FFOH Fidelity Financial of Ohio 17.38 97.17 18.89 19.52 20.44 20.68 151.22 171.52 18.16 1.61 143.82
FFPB First Palm Beach Bancorp Inc.38.25 193.34 21.25 20.68 26.94 36.78 166.67 170.45 10.62 1.83 33.78
FFSL First Independence Corp. 14.75 14.07 20.49 20.49 20.49 20.49 123.85 123.85 12.38 2.03 34.72
FFSX First Fed SB of Siouxland(MHC33.25 94.24 29.69 27.94 28.91 30.79 231.87 233.66 20.53 1.44 40.34
</TABLE>
Page 3 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFWC FFW Corp. 19.75 28.63 14.52 15.67 15.93 14.96 155.63 170.70 14.90 1.82 27.38
FFWD Wood Bancorp Inc. 20.00 53.02 23.81 23.53 26.32 27.78 248.76 248.76 31.84 1.70 31.39
FFYF FFY Financial Corp. 34.00 138.38 17.00 17.44 17.62 17.35 165.61 165.61 22.51 2.35 37.18
FGHC First Georgia Holding Inc. 10.75 32.81 17.92 19.91 23.89 17.92 237.31 255.95 19.72 3.72 0.00
FIBC Financial Bancorp Inc. 25.75 44.02 15.33 16.40 15.33 15.33 159.94 160.64 14.28 1.94 25.48
FISB First Indiana Corp. 27.88 353.13 18.34 20.50 25.34 24.89 230.75 233.46 21.89 1.72 29.41
FKFS First Keystone Financial 17.50 42.22 15.09 14.71 16.51 17.50 168.59 168.59 11.16 1.14 8.40
FKKY Frankfort First Bancorp Inc. 16.25 26.31 16.93 116.07 27.08 16.93 116.74 116.74 19.81 4.92 NM
FLAG FLAG Financial Corp. 20.00 40.74 20.00 20.00 25.00 25.00 187.62 187.62 17.08 1.70 34.00
FLFC First Liberty Financial Corp.32.13 248.92 17.46 26.12 25.50 22.95 257.21 283.04 19.52 1.37 33.33
FLGS Flagstar Bancorp Inc. 22.63 309.28 12.57 12.93 12.93 12.57 254.50 264.93 15.21 1.06 0.00
FLKY First Lancaster Bancshares 15.13 14.42 23.63 27.50 27.50 23.63 101.37 101.37 28.90 3.31 45.45
FMBD First Mutual Bancorp Inc. 19.00 66.63 79.17 61.29 73.08 118.75 113.10 147.52 17.02 1.68 103.23
FMCO FMS Financial Corp. 34.88 83.27 15.30 15.30 15.36 15.30 220.73 223.99 14.32 0.80 9.65
FMSB First Mutual Savings Bank 18.38 75.80 17.01 17.17 17.50 16.41 247.31 247.31 17.00 1.09 46.44
FNGB First Northern Capital Corp. 13.00 114.99 18.06 19.70 20.63 19.12 155.69 155.69 17.22 2.77 48.48
FOBC Fed One Bancorp 35.25 83.72 25.92 25.92 26.11 25.92 199.49 208.21 22.83 1.76 44.12
FPRY First Financial Bancorp NA NA NA NA NA NA NA NA NA NA 39.66
FSBI Fidelity Bancorp Inc. 31.00 48.51 18.90 18.02 18.45 18.90 180.13 180.13 12.32 1.16 20.45
FSFF First SecurityFed Financial 15.31 98.13 NA NA NA NA NA NA NA 0.00 NA
FSLA First Savings Bank (MHC) 43.75 350.72 35.28 37.72 35.86 35.28 345.03 377.81 33.42 1.10 36.99
FSNJ Bayonne Bancshares Inc. 13.88 126.10 26.68 NA NA 26.68 130.53 130.53 20.56 1.23 NA
FSPG First Home Bancorp Inc. 30.50 82.61 18.15 17.73 18.15 18.60 229.15 232.65 15.73 1.31 23.26
FSPT FirstSpartan Financial Corp. 43.50 192.71 25.29 NA NA 25.29 147.36 147.36 38.91 1.38 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. 32.00 88.72 17.39 15.38 17.02 19.51 248.83 311.28 25.12 1.00 14.42
FTF Texarkana First Financial Cor27.75 48.83 15.77 15.68 15.95 16.92 178.80 178.80 27.09 2.02 30.08
FTFC First Federal Capital Corp. 31.19 286.63 16.24 17.62 22.28 22.93 262.08 276.98 18.56 1.54 26.37
FTNB Fulton Bancorp Inc. 22.00 37.71 27.50 28.95 35.48 36.67 146.08 146.08 35.03 1.09 26.32
FTSB Fort Thomas Financial Corp. 15.00 22.12 17.86 18.29 18.29 17.86 140.06 140.06 22.14 1.67 36.59
FWWB First SB of Washington Bancor26.88 269.05 19.76 20.36 21.50 21.67 166.72 180.01 24.01 1.34 21.21
GAF GA Financial Inc. 18.88 145.67 14.75 16.41 17.32 16.85 125.42 126.59 18.58 2.54 36.52
GDVS Greater Delaware Valley (MHC)30.25 98.99 58.17 48.79 48.79 58.17 339.51 339.51 38.01 1.19 58.06
GDW Golden West Financial 94.56 5,396.57 14.59 15.43 15.66 14.78 200.01 200.01 13.63 0.53 7.42
GFCO Glenway Financial Corp. 19.59 44.72 18.14 18.84 18.84 18.14 157.89 159.56 14.67 2.04 35.58
GFED Guaranty Federal Bcshs Inc. 12.19 75.83 NA NA NA NA 109.02 109.02 32.88 1.87 NA
GFSB GFS Bancorp Inc. 17.50 17.43 16.20 15.35 16.20 20.83 155.83 155.83 18.44 1.49 21.49
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. 16.00 35.97 28.57 NA NA 36.36 109.14 109.14 31.04 0.00 NA
GPT GreenPoint Financial Corp. 35.94 3,041.79 18.34 19.32 19.97 18.72 211.40 387.68 23.25 1.78 26.88
GSB Golden State Bancorp Inc. 34.81 1,778.43 21.23 23.21 19.34 17.76 209.46 232.09 11.08 0.00 0.00
GSBC Great Southern Bancorp Inc. 25.63 206.23 14.56 15.72 16.97 16.43 315.19 317.93 27.54 1.72 25.15
GSFC Green Street Financial Corp. 17.50 75.22 25.74 25.74 25.74 25.74 118.81 118.81 41.86 2.51 85.29
</TABLE>
Page 4 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GSLA GS Financial Corp. 20.56 70.71 30.24 NA NA 30.24 125.08 125.08 53.94 1.36 NA
GTPS Great American Bancorp 21.13 35.32 35.21 43.11 43.11 35.21 114.37 114.37 24.88 1.89 81.63
GUPB GFSB Bancorp Inc. 20.75 16.61 17.29 19.04 19.04 17.29 115.86 115.86 14.48 1.93 36.70
HALL Hallmark Capital Corp. 15.50 45.47 16.15 16.32 16.67 16.15 144.19 144.19 11.00 0.00 0.00
HARB Harbor Florida Bancorp (MHC) 72.25 360.86 22.30 25.35 26.27 25.09 356.97 367.87 31.86 1.94 49.12
HARL Harleysville Savings Bank 30.00 50.01 15.63 14.93 14.93 15.63 210.82 210.82 14.37 1.47 20.40
HARS Harris Financial Inc. (MHC) 24.25 819.42 75.78 46.63 65.54 101.04 458.41 513.77 37.22 0.91 38.44
HAVN Haven Bancorp Inc. 25.00 219.62 18.38 20.16 20.00 18.38 194.55 195.16 11.12 1.20 24.19
HBBI Home Building Bancorp 23.63 7.36 24.61 20.72 21.67 26.85 114.63 114.63 17.35 1.27 26.32
HBEI Home Bancorp of Elgin Inc. 18.38 125.98 45.94 41.76 43.75 45.94 132.29 132.29 35.73 2.18 68.18
HBFW Home Bancorp 35.38 84.38 31.58 29.00 29.24 32.75 198.40 198.40 24.11 0.57 16.39
HBNK Highland Bancorp Inc. 35.75 82.88 12.41 13.86 17.88 12.95 199.72 199.72 15.08 0.00 0.00
HBS Haywood Bancshares Inc. 22.25 27.82 8.43 14.26 14.26 8.43 128.39 132.92 18.21 2.70 35.90
HCBB HCB Bancshares Inc. 14.56 38.52 52.01 NA NA 52.01 100.78 104.39 18.80 1.37 NA
HCBC High Country Bancorp Inc. 15.25 20.17 NA NA NA NA 113.05 113.05 23.15 0.00 NA
HCFC Home City Financial Corp. 18.50 16.73 15.95 NA NA 15.95 121.71 121.71 23.87 1.95 NA
HEMT HF Bancorp Inc. 17.38 109.48 39.49 NM 48.26 39.49 130.74 155.41 10.28 0.00 0.00
HFBC HopFed Bancorp Inc. 17.13 69.08 NA NA NA NA NA NA NA 0.00 NA
HFFB Harrodsburg First Fin Bancorp16.50 30.77 20.63 20.89 20.89 20.63 104.10 104.10 30.08 2.42 75.95
HFFC HF Financial Corp. 29.38 87.46 13.35 14.84 15.96 13.86 157.09 157.09 15.06 1.43 19.70
HFGI Harrington Financial Group 11.88 38.55 NM 38.31 38.31 NM 158.33 158.33 7.08 1.01 29.03
HFNC HFNC Financial Corp. 14.19 243.93 20.86 21.18 26.77 32.25 146.87 146.87 26.78 2.26 788.06
HFSA Hardin Bancorp Inc. 19.13 15.75 17.08 19.13 20.79 19.13 120.36 120.36 13.65 2.51 46.00
HFWA Heritage Financial Corp. 14.88 145.05 NA NA NA NA NA NA NA 0.00 NA
HHFC Harvest Home Financial Corp. 14.38 12.81 25.67 21.78 21.78 25.67 123.71 123.71 13.76 3.06 62.12
HIFS Hingham Instit. for Savings 32.75 42.69 16.05 16.38 16.38 16.05 199.70 199.70 19.18 1.47 29.50
HMLK Hemlock Federal Financial Cor18.63 38.67 21.16 NA NA 21.16 127.13 127.13 21.89 1.50 NA
HMNF HMN Financial Inc. 29.38 121.74 23.69 20.83 26.00 31.93 144.14 155.26 17.61 0.00 0.00
HOMF Home Federal Bancorp 31.75 162.56 16.20 17.94 20.35 20.35 260.03 267.48 22.88 1.26 18.12
HPBC Home Port Bancorp Inc. 27.00 49.73 14.36 15.08 15.43 15.00 226.51 226.51 23.82 2.96 44.69
HRBF Harbor Federal Bancorp Inc. 23.94 40.54 23.94 24.18 25.20 28.50 139.01 139.01 17.36 2.01 44.44
HRZB Horizon Financial Corp. 18.00 134.22 16.07 16.22 16.36 15.52 158.17 158.17 25.19 2.44 36.67
HTHR Hawthorne Financial Corp. 19.56 60.46 27.17 14.28 11.78 10.87 142.90 142.90 6.51 0.00 0.00
HWEN Home Financial Bancorp 8.75 8.13 21.88 23.03 30.17 36.46 110.06 110.06 18.68 1.14 26.32
HZFS Horizon Financial Svcs Corp. 16.75 14.29 16.75 19.94 25.00 23.26 158.32 158.32 16.10 1.08 19.64
IBSF IBS Financial Corp. 18.00 197.00 32.14 33.33 33.33 32.14 152.54 152.54 27.05 2.22 64.74
IFSB Independence Federal Svgs Ban16.31 20.90 25.49 14.97 35.46 58.26 114.64 128.75 8.31 6.13 20.18
INBI Industrial Bancorp Inc. 19.75 100.78 17.63 19.17 19.17 17.63 165.55 165.55 27.68 2.84 46.60
INCB Indiana Community Bank SB 20.63 19.02 34.38 39.66 39.66 34.38 164.08 164.08 19.94 1.75 69.23
IPSW Ipswich Savings Bank 13.63 32.50 14.19 15.48 18.92 17.93 274.70 274.70 14.30 1.17 14.20
ITLA ITLA Capital Corp. 19.63 154.48 11.68 12.50 12.50 11.68 155.51 NA 15.21 0.00 0.00
IWBK InterWest Bancorp Inc. 42.50 341.57 16.87 16.93 19.50 21.68 256.02 260.42 17.23 1.69 25.10
JOAC Joachim Bancorp Inc. 16.63 12.01 46.18 46.18 46.18 46.18 121.35 121.35 35.09 3.01 138.89
</TABLE>
Page 5 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JSB JSB Financial Inc. 53.69 532.58 16.37 18.77 21.05 20.97 149.51 149.51 34.71 2.98 47.20
JSBA Jefferson Savings Bancorp 27.00 270.40 27.00 24.77 25.71 29.35 219.69 280.08 21.49 1.04 17.43
JXSB Jacksonville Savings Bk (MHC)23.50 44.84 58.75 47.00 58.75 97.92 256.27 256.27 26.69 1.28 55.02
JXVL Jacksonville Bancorp Inc. 20.00 48.87 15.63 14.71 14.71 15.63 141.94 141.94 20.76 2.50 36.76
KFBI Klamath First Bancorp 23.00 229.86 26.14 24.73 24.73 26.14 144.47 158.08 23.57 1.39 33.33
KNK Kankakee Bancorp Inc. 35.25 48.35 17.63 17.63 17.98 18.36 127.86 135.63 14.08 1.36 24.00
KSAV KS Bancorp Inc. NA NA NA NA NA NA NA NA NA NA 63.46
KSBK KSB Bancorp Inc. 18.50 22.92 12.85 14.23 14.68 13.60 198.29 207.63 15.01 0.54 5.64
KYF Kentucky First Bancorp Inc. 13.75 17.23 21.48 17.63 17.86 21.48 121.47 121.47 20.67 3.64 64.10
LARK Landmark Bancshares Inc. 23.00 38.84 16.43 16.79 18.25 17.42 118.01 118.01 16.62 1.74 29.20
LARL Laurel Capital Group Inc. 21.38 46.49 18.43 16.83 16.83 17.24 206.12 206.12 21.79 1.62 25.20
LFBI Little Falls Bancorp Inc. 19.25 47.69 26.74 28.73 32.08 26.74 132.48 143.66 15.47 1.04 19.40
LFCO Life Financial Corp. 18.00 117.82 6.16 7.23 6.92 5.56 215.05 215.05 28.78 0.00 0.00
LFED Leeds Federal Bankshares (MHC21.63 112.06 33.79 32.77 32.77 33.79 231.28 231.28 38.46 2.59 78.80
LISB Long Island Bancorp Inc. 59.88 1,438.71 26.26 27.72 33.45 33.26 258.19 260.55 23.69 1.00 27.78
LOGN Logansport Financial Corp. 17.13 21.59 14.76 18.03 17.84 14.27 130.53 130.53 25.07 2.34 42.11
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. 29.75 27.26 15.18 16.81 18.71 17.30 144.14 144.14 13.20 1.35 18.49
LSBX Lawrence Savings Bank 19.00 81.47 5.65 10.44 10.56 5.72 216.65 216.65 22.64 0.00 0.00
LVSB Lakeview Financial 25.50 106.19 24.52 18.21 28.98 24.52 191.87 226.87 20.50 0.49 8.94
LXMO Lexington B&L Financial Corp.16.25 18.21 22.57 23.21 23.21 22.57 107.40 114.52 19.70 1.85 42.86
MAFB MAF Bancorp Inc. 38.50 577.99 16.31 16.18 16.38 16.89 219.37 249.03 16.72 0.73 11.34
MARN Marion Capital Holdings 27.25 48.55 24.33 17.93 17.93 24.33 121.76 124.43 25.31 3.23 56.58
MASB MASSBANK Corp. 48.00 171.40 16.67 17.33 18.75 18.75 165.18 167.60 18.52 2.08 31.95
MBB MSB Bancorp Inc. 35.00 99.55 26.52 31.25 31.25 28.23 156.25 293.13 12.86 1.71 53.57
MBBC Monterey Bay Bancorp Inc. 21.50 69.44 41.35 38.39 42.16 44.79 135.82 145.66 17.01 0.65 19.64
MBLF MBLA Financial Corp. 28.13 35.27 19.53 21.15 20.83 20.09 126.01 126.01 15.98 1.42 30.08
MBSP Mitchell Bancorp Inc. 16.63 15.48 31.97 27.71 27.71 31.97 106.84 106.84 42.87 2.41 66.67
MCBN Mid-Coast Bancorp Inc. 38.00 9.01 17.27 19.39 20.65 19.39 172.49 172.49 14.38 1.37 26.53
MDBK Medford Bancorp Inc. 43.63 198.11 18.80 18.25 18.97 17.04 195.19 207.44 17.45 1.83 37.66
MECH MECH Financial Inc. 26.63 140.93 17.52 10.69 10.82 19.02 159.15 159.15 15.79 0.00 0.00
MERI Meritrust Federal SB 78.75 60.97 24.92 23.72 23.72 24.92 306.90 306.90 26.08 0.89 21.08
METF Metropolitan Financial Corp. 17.00 119.87 16.35 20.73 22.08 17.00 326.92 355.65 12.96 0.00 0.00
MFBC MFB Corp. 26.88 43.72 22.40 22.58 22.78 23.17 130.40 130.40 16.55 1.27 26.89
MFFC Milton Federal Financial Corp15.75 35.70 30.29 27.16 28.13 30.29 128.99 128.99 16.32 3.81 103.45
MFLR Mayflower Co-operative Bank 25.88 23.27 14.38 16.48 18.35 17.48 180.82 183.64 17.64 3.09 40.76
MFSL Maryland Federal Bancorp 36.00 233.33 23.68 24.83 26.28 25.71 227.27 229.59 19.69 1.25 28.79
MIFC Mid-Iowa Financial Corp. 12.00 20.52 15.00 13.64 15.00 15.00 161.94 162.16 15.16 0.67 9.09
MIVI Mississippi View Holding Co. 19.25 14.25 20.05 20.26 20.48 20.05 114.24 114.24 20.77 1.66 16.84
MONT Montgomery Financial Corp. 12.81 21.18 24.64 NA NA 24.64 107.76 107.76 20.04 1.72 NA
MRKF Market Financial Corp. 17.13 22.87 35.68 NA NA 35.68 113.19 113.19 40.25 1.64 NA
MSBF MSB Financial Inc. 16.50 20.32 16.50 18.13 19.64 19.64 156.25 156.25 26.35 1.82 29.95
MSBK Mutual Savings Bank FSB 13.63 58.34 113.54 113.54 NM NM 137.49 137.49 9.05 0.00 0.00
</TABLE>
Page 6 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MWBI Midwest Bancshares Inc. 17.00 17.35 15.18 14.91 16.83 16.35 162.52 162.52 11.75 1.41 18.42
MWBX MetroWest Bank 7.97 112.43 15.33 15.04 15.04 15.33 251.39 251.39 18.46 1.51 32.08
MWFD Midwest Federal Financial 30.00 48.83 16.67 17.75 23.08 23.44 256.41 265.25 23.07 1.13 19.53
MYST Mystic Financial Inc. 18.56 50.33 NA NA NA NA NA NA NA 0.00 NA
NASB North American Savings Bank 70.00 156.78 12.50 13.01 15.95 14.11 251.53 259.07 21.36 1.43 14.87
NBN Northeast Bancorp 18.00 40.22 34.62 25.71 27.27 20.45 190.27 211.02 14.35 1.18 30.46
NBSI North Bancshares Inc. 17.50 25.02 54.69 41.67 44.87 54.69 150.86 150.86 20.35 2.29 76.19
NEIB Northeast Indiana Bancorp 21.50 36.90 16.29 17.77 17.77 16.29 138.62 138.62 19.91 1.58 26.45
NHTB New Hampshire Thrift Bncshrs 20.25 42.28 14.06 15.23 16.74 15.82 165.44 191.40 13.30 2.96 37.59
NMSB NewMil Bancorp Inc. 13.63 52.85 20.04 20.64 20.64 17.03 159.54 159.54 14.87 2.35 39.39
NSLB NS&L Bancorp Inc. 17.50 12.00 31.25 26.52 26.92 31.25 105.17 105.93 20.76 2.86 75.76
NSSY NSS Bancorp Inc. 42.00 101.94 15.22 17.07 57.53 17.80 186.75 192.40 15.20 0.95 12.20
NTBK Net.B@nk Inc. 20.50 125.99 NM NA NA NA 360.28 360.28 155.30 0.00 NA
NTMG Nutmeg Federal S&LA 11.25 11.10 31.25 27.44 41.67 40.18 191.33 191.33 10.55 1.78 6.85
NWEQ Northwest Equity Corp. 21.63 18.14 14.61 16.02 16.63 15.45 145.92 145.92 18.22 2.78 37.04
NWSB Northwest Bancorp Inc. (MHC) 15.94 745.86 36.22 37.95 37.95 36.22 358.96 404.52 33.17 1.00 38.10
NYB New York Bancorp Inc. 41.13 878.41 19.04 17.50 19.13 19.04 493.11 493.11 26.91 1.46 23.94
OCFC Ocean Financial Corp. 35.13 275.83 18.68 19.84 19.73 18.29 127.96 127.96 18.26 2.28 33.90
OCN Ocwen Financial Corp. 29.38 1,779.12 19.85 21.13 61.20 NM 423.88 440.40 57.97 0.00 0.00
OFCP Ottawa Financial Corp. 29.00 154.08 19.59 21.64 22.66 21.97 201.81 248.08 17.39 1.38 27.13
OHSL OHSL Financial Corp. 36.75 45.61 24.18 22.69 23.56 27.02 170.14 170.14 19.09 2.40 54.32
OSFS Ohio State Financial Services16.00 10.15 NA NA NA NA 97.15 97.15 26.32 0.00 NA
OTFC Oregon Trail Financial Corp. 18.25 79.07 NA NA NA NA 118.97 118.97 30.76 1.10 NA
PBCI Pamrapo Bancorp Inc. 27.00 76.76 15.34 15.52 16.27 17.76 158.17 159.20 20.38 4.15 57.47
PBCT People's Bank (MHC) 37.94 2,320.38 23.13 25.12 43.11 43.11 326.77 328.47 28.35 2.00 44.60
PBHC Pathfinder Bancorp Inc. (MHC)21.25 61.09 66.41 32.69 37.95 106.25 259.15 305.76 31.05 0.94 26.68
PBKB People's Bancshares Inc. 23.88 78.52 14.92 16.24 34.11 37.30 260.64 271.00 10.29 2.01 28.57
PCBC Perry County Financial Corp. 23.88 19.77 22.96 20.58 20.58 22.96 120.82 120.82 23.25 1.68 34.48
PDB Piedmont Bancorp Inc. 10.63 29.23 20.43 18.97 18.97 20.43 138.71 138.71 22.45 3.77 71.43
PEDE Great Pee Dee Bancorp 16.06 35.37 NA NA NA NA 113.52 113.52 48.65 0.00 NA
PEEK Peekskill Financial Corp. 17.00 53.16 26.56 25.37 25.37 26.56 114.32 114.32 28.86 2.12 53.73
PERM Permanent Bancorp Inc. 33.25 70.08 25.19 27.25 27.71 26.81 160.86 162.75 16.66 1.32 28.69
PERT Perpetual Bank (MHC) 65.38 98.64 39.86 50.29 43.58 39.86 322.20 322.20 33.78 2.14 103.85
PFDC Peoples Bancorp 23.50 79.46 19.58 18.80 18.80 19.58 177.36 177.36 27.08 1.87 33.34
PFED Park Bancorp Inc. 18.88 44.03 78.65 28.17 29.04 58.98 114.05 114.05 24.88 0.00 0.00
PFFB PFF Bancorp Inc. 19.50 350.14 17.41 23.78 25.32 20.31 130.43 131.76 12.66 0.00 0.00
PFFC Peoples Financial Corp. 16.38 23.20 45.49 33.42 33.42 45.49 149.13 149.13 28.13 3.05 NM
PFNC Progress Financial Corp. 17.75 72.13 20.17 19.72 25.72 27.73 287.22 342.00 14.62 0.68 10.73
PFSB PennFed Financial Services In18.25 176.04 15.73 16.15 16.29 16.29 158.42 184.90 11.93 0.77 12.39
PFSL Pocahontas FS&LA (MHC) 45.13 73.66 33.18 31.34 31.78 34.19 297.66 297.66 18.92 1.99 62.50
PHBK Peoples Heritage Finl Group 46.31 1,284.60 16.31 17.88 18.23 16.31 270.36 359.85 18.90 1.90 29.34
PHFC Pittsburgh Home Financial Cor18.00 35.45 14.52 15.79 18.18 17.31 143.77 145.51 11.83 1.33 240.35
PHSB Peoples Home Savings Bk (MHC)19.63 54.17 27.26 NA NA 28.86 189.25 189.25 24.88 1.22 NA
</TABLE>
Page 7 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PKPS Poughkeepsie Financial Corp. 10.56 133.20 NM 58.68 48.01 NM 183.70 183.70 15.21 2.27 69.44
PLSK Pulaski Savings Bank (MHC) 18.25 38.47 41.48 NA NA 41.48 177.36 177.36 21.17 1.64 NA
PMFI Perpetual Midwest Financial 28.75 55.09 31.25 28.47 32.30 34.23 155.49 155.49 13.87 1.04 29.70
PRBC Prestige Bancorp Inc. 19.00 17.38 26.39 20.65 21.11 29.69 111.24 111.24 12.13 1.05 13.04
PROV Provident Financial Holdings 23.50 109.84 23.50 22.38 42.73 58.75 131.65 131.65 15.24 0.00 0.00
PSBK Progressive Bank Inc. 43.69 167.40 20.23 19.86 20.32 20.61 213.32 235.26 18.95 1.83 30.91
PSFC Peoples-Sidney Financial Corp18.00 32.14 22.50 NA NA 22.50 113.56 113.56 30.25 1.56 NA
PSFI PS Financial Inc. 14.06 29.16 18.50 NA NA 18.50 95.28 95.28 35.56 3.41 NA
PTRS Potters Financial Corp. 18.00 17.36 16.07 15.38 15.65 18.00 160.57 160.57 14.15 1.11 13.68
PULB Pulaski Bank, Svgs Bank (MHC)48.50 101.70 55.11 53.30 60.63 60.63 420.28 420.28 56.35 2.27 115.38
PULS Pulse Bancorp 26.63 82.33 15.85 14.87 15.04 15.85 186.06 186.06 15.24 3.01 40.50
PVFC PVF Capital Corp. 22.69 60.33 12.07 12.40 13.11 12.60 209.11 209.11 15.23 0.00 0.00
PVSA Parkvale Financial Corp. 31.00 158.98 14.90 15.35 15.35 14.90 196.33 197.45 15.54 1.68 23.17
PWBC PennFirst Bancorp Inc. 19.13 100.80 17.71 17.71 17.71 17.71 147.12 NA 11.07 1.88 31.81
PWBK Pennwood Bancorp Inc. 20.00 11.01 23.81 23.81 23.26 31.25 119.33 119.33 23.33 1.80 38.10
QCBC Quaker City Bancorp Inc. 21.00 97.82 15.44 16.41 16.94 15.91 133.50 133.50 11.52 0.00 0.00
QCFB QCF Bancorp Inc. 28.25 39.04 12.39 13.85 13.85 12.39 145.54 145.54 25.57 0.00 0.00
QCSB Queens County Bancorp Inc. 40.00 596.51 25.64 25.00 25.32 27.03 302.34 302.34 37.21 2.00 38.19
RARB Raritan Bancorp Inc. 28.00 66.42 17.95 18.18 18.42 17.95 215.22 218.24 16.27 2.14 30.74
RCBK Richmond County Financial Cor16.94 414.41 NA NA NA NA NA NA NA 0.00 NA
REDF RedFed Bancorp Inc. 19.88 143.75 13.08 14.10 13.80 12.12 170.60 171.19 14.24 0.00 0.00
RELI Reliance Bancshares Inc. 8.88 22.74 44.38 42.26 44.38 44.38 101.89 101.89 51.06 0.00 0.00
RELY Reliance Bancorp Inc. 37.00 356.46 18.50 18.78 19.89 18.88 185.74 272.66 15.89 1.73 32.49
RIVR River Valley Bancorp 19.75 23.51 17.03 NA NA 18.99 133.45 135.37 16.98 1.01 NA
ROSE TR Financial Corp. 33.00 580.73 15.57 16.84 18.86 17.55 226.96 226.96 15.11 2.06 28.06
RSLN Roslyn Bancorp Inc. 21.31 930.15 22.20 NA NA 26.64 148.01 148.73 25.83 1.50 NA
RVSB Riverview Bancorp Inc. 16.00 98.13 NA NA NA NA 164.10 170.03 37.30 0.75 NA
SBFL SB of the Finger Lakes (MHC) 17.00 60.69 60.71 70.83 80.95 70.83 279.61 279.61 24.50 1.18 83.33
SBOS Boston Bancorp (The) NA NA NA NA NA NA NA NA NA NA 10.89
SCBS Southern Community Bancshares18.00 20.47 20.45 20.93 20.69 20.45 145.16 145.16 28.88 1.67 34.88
SCCB S. Carolina Community Bancshr21.50 12.54 44.79 30.71 30.71 44.79 134.46 134.46 27.81 2.98 88.57
SFED SFS Bancorp Inc. 22.88 27.64 22.00 24.60 25.42 24.86 129.02 129.02 15.85 1.40 29.03
SFFC StateFed Financial Corp. 14.50 22.61 20.14 20.14 20.14 20.14 144.42 144.42 25.49 1.38 27.78
SFIN Statewide Financial Corp. 23.13 104.27 17.52 18.21 18.21 17.52 161.26 161.49 15.10 1.90 32.28
SFSB SuburbFed Financial Corp. 47.38 59.96 22.35 22.78 28.20 30.37 203.24 203.85 13.68 0.68 15.38
SFSL Security First Corp. 21.75 163.74 19.42 20.33 20.33 19.42 259.55 263.64 24.29 1.47 29.28
SGVB SGV Bancorp Inc. 16.75 39.28 46.53 28.88 34.90 46.53 127.57 129.44 9.63 0.00 0.00
SHEN First Shenango Bancorp Inc. 43.00 88.97 20.67 19.20 19.20 20.67 185.91 185.91 23.73 1.40 25.45
SHSB SHS Bancorp Inc. 17.87 14.65 NA NA NA NA NA NA NA 0.00 NA
SIB Staten Island Bancorp Inc. 19.94 899.81 NA NA NA NA 131.17 134.81 33.94 0.00 NA
SISB SIS Bancorp Inc. 38.50 267.49 106.94 23.33 18.33 15.78 211.89 211.89 15.43 1.66 31.52
SKAN Skaneateles Bancorp Inc. 19.75 28.38 18.99 17.48 18.12 18.99 160.57 165.00 11.08 1.42 23.61
SKBO First Carnegie Deposit (MHC) 19.00 43.70 79.17 NA NA 118.75 176.91 176.91 30.42 1.58 NA
</TABLE>
Page 8 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SMBC Southern Missouri Bancorp Inc21.88 34.93 30.38 25.44 26.68 34.18 132.82 132.82 22.05 2.29 58.14
SOBI Sobieski Bancorp Inc. 21.50 16.86 31.62 32.58 32.58 31.62 121.13 121.13 18.76 1.49 45.45
SOPN First Savings Bancorp Inc. 23.00 85.21 17.97 18.40 18.40 17.97 124.26 124.26 28.29 3.83 67.20
SOSA Somerset Savings Bank 4.81 80.18 13.37 13.75 14.16 13.37 223.86 223.86 14.86 0.00 0.00
SPBC St. Paul Bancorp Inc. 26.88 919.25 18.66 19.20 19.06 18.66 219.93 220.47 20.17 1.49 25.71
SRN Southern Banc Co. 16.88 20.76 46.88 40.18 40.18 46.88 113.71 114.64 19.75 0.00 83.33
SSB Scotland Bancorp Inc. 10.13 19.38 28.13 15.58 15.58 28.13 130.98 130.98 31.52 1.98 965.38
SSFC South Street Financial Corp. 12.50 58.45 NM 26.04 27.17 NM 159.24 159.24 25.58 3.20 NM
SSM Stone Street Bancorp Inc. 20.00 37.96 25.00 22.47 22.47 25.00 122.55 122.55 36.23 2.30 512.08
STFR St. Francis Capital Corp. 44.50 233.68 15.45 19.10 19.87 21.39 179.94 201.81 14.63 1.26 21.46
STSA Sterling Financial Corp. 24.63 186.41 18.66 19.70 21.60 18.66 181.20 196.06 9.94 0.00 0.00
SVRN Sovereign Bancorp Inc. 21.06 2,411.14 18.16 27.71 23.15 18.81 276.78 333.28 13.73 0.38 10.53
SWBI kouthwest Bancshares Inc. 31.81 86.36 20.93 21.35 21.35 18.94 196.13 196.13 23.45 2.52 51.68
SWCB Sandwich Bancorp Inc. 57.75 112.16 20.33 23.57 24.16 21.23 266.99 276.58 21.62 2.42 51.02
SZB SouthFirst Bancshares Inc. 21.88 21.34 20.25 29.56 24.58 18.86 133.38 136.89 12.91 2.74 67.57
THR Three Rivers Financial Corp. 23.13 19.07 22.24 21.61 22.90 24.09 145.26 145.72 19.56 1.90 35.51
THRD TF Financial Corp. 26.13 83.27 21.07 20.90 24.65 24.19 150.49 180.30 13.95 1.84 32.00
TPNZ Tappan Zee Financial Inc. 20.38 30.12 28.30 28.30 29.11 29.96 139.94 139.94 23.81 1.37 33.33
TRIC Tri-County Bancorp Inc. 14.00 16.34 19.44 18.67 18.18 19.44 118.24 118.24 18.16 2.86 43.33
TSBK Timberland Bancorp Inc. 18.31 121.09 NA NA NA NA NA NA NA 0.00 NA
TSBS Peoples Bancorp Inc. (MHC) 42.94 388.44 63.14 52.36 70.39 63.14 353.11 391.06 60.66 0.82 42.68
TSH Teche Holding Co. 20.38 70.04 18.19 16.98 17.72 18.19 126.63 126.63 17.14 2.45 41.67
TWIN Twin City Bancorp 14.38 18.24 16.34 16.72 20.25 21.14 130.09 130.09 16.78 2.78 48.84
UBMT United Financial Corp. 27.00 33.03 20.45 21.95 22.13 20.45 133.40 133.40 32.04 3.70 77.24
UCBC Union Community Bancorp 14.63 44.49 NA NA NA NA NA NA NA 0.00 NA
UFRM United Federal Savings Bank 18.06 57.25 41.05 31.69 48.82 75.26 260.65 260.65 18.82 1.33 40.35
USAB USABancshares, Inc. 12.50 9.16 19.53 43.10 48.08 20.83 185.74 188.54 14.25 0.00 0.00
UTBI United Tennessee Bankshares 14.25 20.73 NA NA NA NA NA NA NA 0.00 NA
VABF Virginia Beach Fed. Financial20.00 99.61 22.73 26.67 32.79 29.41 229.89 229.89 16.45 1.20 25.33
WAMU Washington Mutual Inc. 71.72 18,471.95 19.07 38.56 22.77 19.92 344.80 370.26 19.05 1.62 56.99
WAYN Wayne Savings Bancshares (MHC30.50 68.85 38.13 36.75 39.61 42.36 284.51 284.51 26.99 2.03 74.49
WBST Webster Financial Corp. 62.50 853.32 14.74 25.61 17.71 15.78 223.29 256.04 12.16 1.28 31.97
WCBI Westco Bancorp Inc. 29.00 71.47 16.11 16.57 17.79 17.68 147.06 147.06 22.62 2.35 35.43
WCFB Webster City Federal SB (MHC)20.25 42.71 31.64 31.15 31.15 31.64 191.04 191.04 44.91 3.95 123.08
WEFC Wells Financial Corp. 18.50 36.25 15.95 15.95 16.37 16.52 122.27 122.27 17.99 2.60 20.69
WEHO Westwood Homestead Fin. Corp.14.00 39.81 NM 42.42 26.92 NA 132.08 132.08 29.65 2.57 NM
WES Westcorp 19.69 517.37 12.95 14.06 NM NM 148.36 148.70 13.87 2.03 28.57
WFI Winton Financial Corp. 27.25 54.69 14.19 15.84 18.92 17.03 224.10 228.22 16.57 1.84 27.33
WFSL Washington Federal Inc. 27.38 1,434.07 13.42 13.42 13.55 13.69 194.29 210.74 25.05 3.19 41.00
WHGB WHG Bancshares Corp. 18.50 25.70 38.54 33.64 33.04 38.54 129.01 129.01 25.36 1.73 41.82
WOFC Western Ohio Financial Corp. 26.25 63.77 218.75 39.18 32.81 32.81 112.18 120.19 15.56 3.81 149.25
WRNB Warren Bancorp Inc. 23.25 88.49 15.71 12.70 15.92 16.61 221.01 221.01 23.85 2.24 47.54
WSB Washington Savings Bank, FSB 8.38 36.81 16.11 16.42 27.92 34.90 163.26 163.26 13.89 1.19 19.61
</TABLE>
Page 9 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WSBI Warwick Community Bancorp 17.13 113.14 NA NA NA NA NA NA NA 0.00 NA
WSFS WSFS Financial Corp. 20.13 250.76 16.23 15.60 15.85 16.77 289.15 290.82 16.55 0.00 0.00
WSTR WesterFed Financial Corp. 25.75 143.73 17.40 19.36 19.81 17.88 133.35 164.12 13.87 1.86 35.41
WVFC WVS Financial Corp. 36.75 66.45 16.41 17.42 17.33 15.84 207.04 207.04 22.06 3.27 255.92
WYNE Wayne Bancorp Inc. 24.00 48.33 26.09 23.30 23.30 26.09 142.35 142.35 17.90 0.83 19.42
YFCB Yonkers Financial Corp. 19.38 58.53 16.70 17.78 18.11 18.63 130.30 130.30 17.64 1.45 20.18
YFED York Financial Corp. 25.06 221.85 20.21 20.71 24.57 27.24 211.68 211.68 18.76 2.08 39.67
</TABLE>
Page 10 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Pennsylvania
CMSB Commonwealth Bancorp Inc. 20.13 326.97 19.35 19.73 28.75 29.60 152.23 192.77 14.41 1.39 27.45
CRSB Crusader Holding Corp. 14.88 52.06 12.00 NA NA 13.28 NM NM 25.98 0.00 NA
CVAL Chester Valley Bancorp Inc. 36.50 79.48 24.01 25.35 26.84 25.35 275.68 275.68 24.31 1.21 31.49
FBBC First Bell Bancorp Inc. 18.88 122.89 15.22 15.35 15.73 15.22 168.38 168.38 18.19 2.12 32.52
FKFS First Keystone Financial 17.50 42.22 15.09 14.71 16.51 17.50 168.59 168.59 11.16 1.14 8.40
FSBI Fidelity Bancorp Inc. 31.00 48.51 18.90 18.02 18.45 18.90 180.13 180.13 12.32 1.16 20.45
GAF GA Financial Inc. 18.88 145.67 14.75 16.41 17.32 16.85 125.42 126.59 18.58 2.54 36.52
GDVS Greater Delaware Valley (MHC)30.25 98.99 58.17 48.79 48.79 58.17 339.51 339.51 38.01 1.19 58.06
HARL Harleysville Savings Bank 30.00 50.01 15.63 14.93 14.93 15.63 210.82 210.82 14.37 1.47 20.40
HARS Harris Financial Inc. (MHC) 24.25 819.42 75.78 46.63 65.54 101.04 458.41 513.77 37.22 0.91 38.44
LARL Laurel Capital Group Inc. 21.38 46.49 18.43 16.83 16.83 17.24 206.12 206.12 21.79 1.62 25.20
NWSB Northwest Bancorp Inc. (MHC) 15.94 745.86 36.22 37.95 37.95 36.22 358.96 404.52 33.17 1.00 38.10
PFNC Progress Financial Corp. 17.75 72.13 20.17 19.72 25.72 27.73 287.22 342.00 14.62 0.68 10.73
PHFC Pittsburgh Home Financial Cor18.00 35.45 14.52 15.79 18.18 17.31 143.77 145.51 11.83 1.33 240.35
PHSB Peoples Home Savings Bk (MHC)19.63 54.17 27.26 NA NA 28.86 189.25 189.25 24.88 1.22 NA
PRBC Prestige Bancorp Inc. 19.00 17.38 26.39 20.65 21.11 29.69 111.24 111.24 12.13 1.05 13.04
PVSA Parkvale Financial Corp. 31.00 158.98 14.90 15.35 15.35 14.90 196.33 197.45 15.54 1.68 23.17
PWBC PennFirst Bancorp Inc. 19.13 100.80 17.71 17.71 17.71 17.71 147.12 NA 11.07 1.88 31.81
PWBK Pennwood Bancorp Inc. 20.00 11.01 23.81 23.81 23.26 31.25 119.33 119.33 23.33 1.80 38.10
SHEN First Shenango Bancorp Inc. 43.00 88.97 20.67 19.20 19.20 20.67 185.91 185.91 23.73 1.40 25.45
SHSB SHS Bancorp Inc. 17.87 14.65 NA NA NA NA NA NA NA 0.00 NA
SKBO First Carnegie Deposit (MHC) 19.00 43.70 79.17 NA NA 118.75 176.91 176.91 30.42 1.58 NA
SVRN Sovereign Bancorp Inc. 21.06 2,411.14 18.16 27.71 23.15 18.81 276.78 333.28 13.73 0.38 10.53
THRD TF Financial Corp. 26.13 83.27 21.07 20.90 24.65 24.19 150.49 180.30 13.95 1.84 32.00
USAB USABancshares, Inc. 12.50 9.16 19.53 43.10 48.08 20.83 185.74 188.54 14.25 0.00 0.00
WVFC WVS Financial Corp. 36.75 66.45 16.41 17.42 17.33 15.84 207.04 207.04 22.06 3.27 255.92
YFED York Financial Corp. 25.06 221.85 20.21 20.71 24.57 27.24 211.68 211.68 18.76 2.08 39.67
Pennsylvania Average 221.03 25.52 23.34 25.48 29.95 209.32 223.97 19.99 1.33 45.99
Pennsylvania Median 72.13 19.44 19.72 21.11 20.75 185.91 191.01 18.39 1.33 31.49
</TABLE>
Page 11 of 12
<PAGE>
Exhibit 8
Industry Multiples
Pricing Data as of March 11, 1998
<TABLE>
<CAPTION>
------------------------------------------------------
Current Price in Relation to
Current Current ------------------------------------------------------ Current LTM
Stock Market Price/ Price/ Tangible Dividend Dividend
Price Value EarningLTM EPS LTM Core ECore Book ValBook ValuAssets Yield Payout Ratio
Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Comparable Group
CSBF CSB Financial Group Inc. 13.63 11.44 28.39 50.46 54.50 30.97 104.09 110.59 24.03 0.00 0.00
FLKY First Lancaster Bancshares 15.13 14.42 23.63 27.50 27.50 23.63 101.37 101.37 28.90 3.31 45.45
HBBI Home Building Bancorp 23.63 7.36 24.61 20.72 21.67 26.85 114.63 114.63 17.35 1.27 26.32
HWEN Home Financial Bancorp 8.75 8.13 21.88 23.03 30.17 36.46 110.06 110.06 18.68 1.14 26.32
JOAC Joachim Bancorp Inc. 16.63 12.01 46.18 46.18 46.18 46.18 121.35 121.35 35.09 3.01 138.89
LONF London Financial Corp. 15.25 7.78 15.25 17.73 19.06 15.89 149.07 149.07 20.52 1.57 609.30
MBSP Mitchell Bancorp Inc. 16.63 15.48 31.97 27.71 27.71 31.97 106.84 106.84 42.87 2.41 66.67
PWBK Pennwood Bancorp Inc. 20.00 11.01 23.81 23.81 23.26 31.25 119.33 119.33 23.33 1.80 38.10
RELI Reliance Bancshares Inc. 8.88 22.74 44.38 42.26 44.38 44.38 101.89 101.89 51.06 0.00 0.00
SCCB S. Carolina Community Bancshr21.50 12.54 44.79 30.71 30.71 44.79 134.46 134.46 27.81 2.98 88.57
Comparable Average 12.29 30.49 31.01 32.51 33.24 116.31 116.96 28.96 1.75 103.96
Comparable Median 11.73 26.50 27.61 28.94 31.61 112.35 112.61 25.92 1.69 41.78
All Public Average 262.82 24.45 24.16 24.87 26.31 177.61 185.09 20.86 1.50 46.97
All Public Median 63.19 19.67 20.34 21.41 20.87 158.38 162.52 18.72 1.47 29.70
Pennsylvania Average 221.03 25.52 23.34 25.48 29.95 209.32 223.97 19.99 1.33 45.99
Pennsylvania Median 72.13 19.44 19.72 21.11 20.75 185.91 191.01 18.39 1.33 31.49
</TABLE>
Page 12 of 12
<PAGE>
Exhibit 9
Standard Conversions - 1997 to Date
Selected Market Data
Market Data as of 3/11/98
<TABLE>
<CAPTION>
Pro-Forma
Gross Conversion Total
IPO Price Proceeds Assets Equity
Ticker Short Name IPO Date ($) ($000) ($000) ($000)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp 02/18/98 10.000 244,663 993,370 307,206
HFBC HopFed Bancorp Inc. 02/09/98 10.000 40,336 202,496 53,478
TSBK Timberland Bancorp Inc. 01/13/98 10.000 66,125 206,188 81,091
MYST Mystic Financial Inc. 01/09/98 10.000 27,111 149,653 34,869
UTBI United Tennessee Bankshares 01/05/98 10.000 14,548 64,189 18,556
------------------------------------------------------------------------------------
Q1`98 Average
Median
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
1998 YTD Average
Median
------------------------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 12/31/97 10.000 21,821 60,538 29,534
UCBC Union Community Bancorp 12/29/97 10.000 30,418 84,291 41,044
WSBI Warwick Community Bancorp 12/23/97 10.000 66,065 286,545 84,076
SIB Staten Island Bancorp Inc. 12/22/97 12.000 515,775 2,144,500 640,283
HCBC High Country Bancorp Inc. 12/10/97 10.000 13,225 76,324 17,010
FSFF First SecurityFed Financial 10/31/97 10.000 64,080 260,002 85,232
OTFC Oregon Trail Financial Corp. 10/06/97 10.000 46,949 204,213 61,266
RVSB Riverview Bancorp Inc. 10/01/97 10.000 NA NA NA
SHSB SHS Bancorp Inc. 10/01/97 10.000 8,200 81,688 11,593
------------------------------------------------------------------------------------
Q4 `97 Average
Median
------------------------------------------------------------------------------------
OSFS Ohio State Financial Services 09/29/97 10.000 6,332 33,929 9,998
FSPT FirstSpartan Financial Corp. 07/09/97 20.000 88,608 375,526 121,408
GOSB GSB Financial Corp. 07/09/97 10.000 22,483 96,323 30,613
FBNW FirstBank Corp. 07/02/97 10.000 19,838 133,194 27,578
CFBC Community First Banking Co. 07/01/97 20.000 48,271 352,532 66,357
------------------------------------------------------------------------------------
Q3`97 Average
Median
------------------------------------------------------------------------------------
HCBB HCB Bancshares Inc. 05/07/97 10.000 26,450 171,241 36,760
PSFC Peoples-Sidney Financial Corp. 04/28/97 10.000 17,854 86,882 25,061
HMLK Hemlock Federal Financial Corp 04/02/97 10.000 20,763 146,595 28,989
GSLA GS Financial Corp. 04/01/97 10.000 34,385 86,521 53,934
------------------------------------------------------------------------------------
Q2 '97 Average
Median
------------------------------------------------------------------------------------
MRKF Market Financial Corp. 03/27/97 10.000 13,357 45,547 18,795
EFBC Empire Federal Bancorp Inc. 01/27/97 10.000 25,921 86,810 38,067
FAB FIRSTFED AMERICA BANCORP INC. 01/15/97 10.000 87,126 723,778 120,969
RSLN Roslyn Bancorp Inc. 01/13/97 10.000 423,714 1,596,744 588,624
AFBC Advance Financial Bancorp 01/02/97 10.000 10,845 91,852 15,256
------------------------------------------------------------------------------------
Q1 '97 Average
Median
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
1997 Average
Median
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
1/1/97 to Average
3/11/98 Median
------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Exhibit 9
Standard Conversions - 1997 to Date
Selected Market Data
Market Data as of 3/11/98
<TABLE>
<CAPTION>
--------------------------------------- -----------------------------------
Price to Pro-Forma Percent Change from IPO
--------------------------------------- -----------------------------------
Pro-Forma Pro-Forma Pro-Forma Adjusted After After After After
Book Value Tang. Book Earnings Assets 1 Day 1 Week 1 Month 3 Months
Ticker Short Name (%) (%) (x) (%) (%) (%) (%) (%)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp 79.6 79.6 14.0 19.8 63.13% 64.38% NA NA
HFBC HopFed Bancorp Inc. 75.4 75.4 12.4 16.6 68.13% 60.00% 67.50% NA
TSBK Timberland Bancorp Inc. 81.5 81.5 10.5 24.3 45.00% 60.00% 60.00% NA
MYST Mystic Financial Inc. 77.8 77.8 17.5 15.3 44.38% 56.25% 50.00% NA
UTBI United Tennessee Bankshares 78.4 78.4 16.1 18.5 47.50% 37.50% 42.50% NA
----------------------------------------------------------------------------------------------------------------
Q1`98 Average 78.5 78.6 14.1 18.9 53.63% 55.63% 55.00% -
Median 78.4 78.4 14.0 18.5 47.50% 60.00% 55.00% -
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
1998 YTD Average 78.5 78.6 14.1 18.9 53.63% 55.63% 55.00% -
Median 78.4 78.4 14.0 18.5 47.50% 60.00% 55.00% -
----------------------------------------------------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 73.9 73.9 15.9 26.5 61.25% 55.00% 48.75% NA
UCBC Union Community Bancorp 74.1 74.1 13.5 26.5 46.88% 42.50% 42.50% NA
WSBI Warwick Community Bancorp 78.6 78.6 13.7 18.7 56.25% 70.00% 56.25% NA
SIB Staten Island Bancorp Inc. 80.6 83.0 14.1 19.4 58.86% 61.98% 59.90% NA
HCBC High Country Bancorp Inc. 77.7 77.7 30.5 14.8 44.38% 50.63% 45.00% 50.00%
FSFF First SecurityFed Financial 75.2 75.2 14.9 19.8 50.63% 51.25% 60.63% 46.88%
OTFC Oregon Trail Financial Corp. 76.6 76.6 18.5 18.7 67.50% 63.75% 61.25% 67.50%
RVSB Riverview Bancorp Inc. NA NA NA NA 31.88% 36.25% 32.50% 77.50%
SHSB SHS Bancorp Inc. 70.7 70.7 13.9 9.1 47.50% 62.50% 60.00% 67.50%
-----------------------------------------------------------------------------------------------------------------
Q4 `97 Average 75.9 76.2 16.9 19.2 51.68% 54.87% 51.86% 61.88%
Median 75.9 75.9 14.5 19.1 50.63% 55.00% 56.25% 67.50%
-----------------------------------------------------------------------------------------------------------------
OSFS Ohio State Financial Services 63.3 63.3 17.0 15.7 55.00% 53.70% 49.60% 52.50%
FSPT FirstSpartan Financial Corp. 73.0 73.0 26.0 19.1 83.44% 85.00% 78.13% 91.88%
GOSB GSB Financial Corp. 73.4 73.4 23.2 18.9 46.25% 48.75% 43.75% 55.00%
FBNW FirstBank Corp. 71.9 71.9 19.2 13.0 58.13% 55.63% 77.50% 72.50%
CFBC Community First Banking Co. 72.7 72.7 36.1 12.0 59.38% 65.00% 70.00% 87.50%
-----------------------------------------------------------------------------------------------------------------
Q3`97 Average 70.9 70.9 24.3 15.7 60.44% 61.62% 63.80% 71.88%
Median 72.7 72.7 23.2 15.7 58.13% 55.63% 70.00% 72.50%
-----------------------------------------------------------------------------------------------------------------
HCBB HCB Bancshares Inc. 72.0 72.0 26.2 13.4 26.25% 27.50% 28.75% 38.75%
PSFC Peoples-Sidney Financial Corp. 71.2 71.2 11.5 17.0 25.63% 28.75% 32.50% 55.00%
HMLK Hemlock Federal Financial Corp 71.6 71.6 37.5 12.4 28.75% 28.75% 30.00% 40.00%
GSLA GS Financial Corp. 63.8 63.8 38.7 28.4 33.75% 37.50% 40.00% 51.25%
-----------------------------------------------------------------------------------------------------------------
Q2 '97 Average 69.7 69.6 28.5 17.8 28.60% 30.63% 32.81% 46.25%
Median 71.4 71.4 31.9 15.2 27.50% 28.75% 31.25% 45.63%
-----------------------------------------------------------------------------------------------------------------
MRKF Market Financial Corp. 71.1 71.1 26.2 22.7 29.38% 22.50% 26.25% 37.50%
EFBC Empire Federal Bancorp Inc. 68.1 68.1 21.5 23.0 32.50% 35.00% 37.50% 31.25%
FAB FIRSTFED AMERICA BANCORP INC. 72.0 72.0 13.6 10.7 36.25% 41.25% 48.75% 38.75%
RSLN Roslyn Bancorp Inc. 72.0 72.0 9.3 21.0 50.00% 59.38% 60.00% 58.75%
AFBC Advance Financial Bancorp 71.1 71.1 16.8 10.6 28.75% 29.38% 40.00% 40.00%
-----------------------------------------------------------------------------------------------------------------
Q1 '97 Average 70.9 70.9 17.5 17.6 35.38% 37.50% 42.50% 41.25%
Median 71.1 71.1 16.8 21.0 32.50% 35.00% 40.00% 38.75%
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
1997 Average 72.5 72.6 20.8 17.8 46.03% 48.35% 49.11% 55.79%
Median 72.0 72.0 17.8 18.7 46.88% 50.63% 48.75% 52.50%
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
1/1/97 to Average 73.6 73.7 19.6 18.0 47.38% 49.65% 49.98% 55.79%
3/11/98 Median 73.0 73.0 16.8 18.7 47.19% 52.48% 48.75% 52.50%
-----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1 Continued
<PAGE>
Exhibit 9
Standard Conversions - 1997 to Date
Selected Market Data
Market Data as of 3/11/98
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Current Price to
--------------------------------------------------------------------------------
Current
Stock Price Book Value Tang. Book LTM Earnings Earnings Core EPS LTM EPS Assets
Ticker Short Name 3/11/98 (%) (%) (X) (X) (X) (X) (%)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RCBK Richmond County Financial Corp 16.938 NA NA NA NA NA NA NA
HFBC HopFed Bancorp Inc. 17.125 NA NA NA NA NA NA NA
TSBK Timberland Bancorp Inc. 18.313 NA NA NA NA NA NA NA
MYST Mystic Financial Inc. 18.563 NA NA NA NA NA NA NA
UTBI United Tennessee Bankshares 14.250 NA NA NA NA NA NA NA
----------------------------------------------------------------------------------------------------------------------
Q1`98 Average 17.0 - - - - - - -
Median 17.1 - - - - - - -
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
1998 YTD Average 17.0 - - - - - - -
Median 17.1 - - - - - - -
----------------------------------------------------------------------------------------------------------------------
PEDE Great Pee Dee Bancorp 16.063 113.52 113.52 NA NA NA NA 48.65
UCBC Union Community Bancorp 14.625 NA NA NA NA NA NA NA
WSBI Warwick Community Bancorp 17.125 NA NA NA NA NA NA NA
SIB Staten Island Bancorp Inc. 19.938 131.17 134.81 NA NA NA NA 33.94
HCBC High Country Bancorp Inc. 15.250 113.05 113.05 NA NA NA NA 23.15
FSFF First SecurityFed Financial 15.313 NA NA NA NA NA NA NA
OTFC Oregon Trail Financial Corp. 18.250 118.97 118.97 NA NA NA NA 30.76
RVSB Riverview Bancorp Inc. 16.000 164.10 170.03 NA NA NA NA 37.30
SHSB SHS Bancorp Inc. 17.870 NA NA NA NA NA NA NA
----------------------------------------------------------------------------------------------------------------------
Q4 `97 Average 16.715 128.16 130.08 - - - - 34.76
Median 16.063 118.97 118.97 - - - - 33.94
----------------------------------------------------------------------------------------------------------------------
OSFS Ohio State Financial Services 16.000 97.150 97.150 NA NA NA NA 26.320
FSPT FirstSpartan Financial Corp. 43.500 147.360 147.360 NA 25.290 25.290 NA 38.910
GOSB GSB Financial Corp. 16.000 109.140 109.140 NA 28.570 36.360 NA 31.040
FBNW FirstBank Corp. 19.750 121.990 121.990 NA 19.750 35.270 NA 21.370
CFBC Community First Banking Co. 45.500 144.490 146.440 NA NA NA NA 27.830
-----------------------------------------------------------------------------------------------------------------------
Q3`97 Average 28.2 124.0 124.4 - 24.5 32.3 - 29.1
Median 19.8 122.0 122.0 - 25.3 35.3 - 27.8
-----------------------------------------------------------------------------------------------------------------------
HCBB HCB Bancshares Inc. 14.563 100.8 104.4 NA 52.0 52.0 NA 18.8
PSFC Peoples-Sidney Financial Corp. 18.000 113.6 113.6 NA 22.5 22.5 NA 30.3
HMLK Hemlock Federal Financial Corp 18.625 127.1 127.1 NA 21.2 21.2 NA 21.9
GSLA GS Financial Corp. 20.563 125.1 125.1 NA 30.2 30.2 NA 53.9
-----------------------------------------------------------------------------------------------------------------------
Q2 '97 Average 17.9 116.6 117.5 - 31.5 31.5 - 31.2
Median 18.3 119.3 119.3 - 26.4 26.4 - 26.1
-----------------------------------------------------------------------------------------------------------------------
MRKF Market Financial Corp. 17.125 113.2 113.2 NA 35.7 35.7 NA 40.3
EFBC Empire Federal Bancorp Inc. 17.375 112.0 112.0 NA 25.6 25.6 NA 40.8
FAB FIRSTFED AMERICA BANCORP INC. 19.875 124.1 124.1 NA 20.7 26.2 NA 14.9
RSLN Roslyn Bancorp Inc. 21.313 148.0 148.7 NA 22.2 26.6 NA 25.8
AFBC Advance Financial Bancorp 20.500 135.2 135.2 NA 24.4 27.0 NA 20.6
-----------------------------------------------------------------------------------------------------------------------
Q1 '97 Average 19.2 126.5 126.7 - 25.7 28.2 - 28.5
Median 19.9 124.1 124.1 - 24.4 26.6 - 25.8
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
1997 Average 20.0 124.2 125.0 - 27.3 30.3 - 30.9
Median 17.9 122.0 122.0 - 24.8 26.8 - 30.3
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
1/1/97 to Average 19.4 124.2 125.0 - 27.3 30.3 - 30.9
3/11/98 Median 17.6 122.0 122.0 - 24.8 26.8 - 30.3
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Exhibit 10 Appraisal - No Foundation
Carnegie Savings Bank
Pro-Forma Analysis Sheet - Twelve Months Ended
December 31, 1997
Includes SOP 93-6
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Bank Comparables State National
---------------------------------------------------------------------------------------
Mean Median Mean Median Mean Median
---- ------ ---- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Min 12.50
Price-Earnings Ratio P/E Mid 13.51 29.05 27.01 23.34 19.72 24.16 20.34
- ------------------------
Max 14.93
Smax 16.39
Min 67.80%
Price-to-Book Ratio P/B Mid 72.15% 114.69% 108.45% 209.32% 185.91% 177.61% 158.38%
- -----------------------
Max 75.82%
Smax 79.24%
Min 67.80%
Price-to-Tangible Book Ratio P/TB Mid 72.15% 115.42% 110.33% 223.97% 191.01% 185.09% 162.52%
- ---------------------------------
Max 75.82%
Smax 79.24%
Min 8.59%
Price-to-Assets Ratio P/A Mid 9.97% 27.53% 23.68% 19.99% 18.39% 20.86% 18.72%
- -------------------------
Max 11.32%
Smax 12.83%
</TABLE>
Page 1
<PAGE>
Exhibit 10 Appraisal - No Foundation
<TABLE>
<CAPTION>
Valuation Parameters
- --------------------
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Prior Twelve Mos. Earning Base Y
Period Ended December 31, 1997 $ (54)(1)
- ------------------------------------------------------------------------------------------------
Pre-Conversion Book Value B
As of December 31, 1997 $ 1,170
- ------------------------------------------------------------------------------------------------
Pre-Conversion Assets A
As of December 31, 1997 $ 16,723
- ------------------------------------------------------------------------------------------------
Return on Money R 350%(2)
- ------------------------------------------------------------------------------------------------
Conversion Expenses $ 260
X 14.44%(3)
- ------------------------------------------------------------------------------------------------
Proceeds Not Invested $ 216(4)
- ------------------------------------------------------------------------------------------------
Estimated ESOP Borrowings $ 144
ESOP Purchases E 8.00%(5)
Cost of ESOP Borrowings $ 14(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 $ 72(6)
MRP Purchases M 4.00%
MRP Expense $ 14
- ------------------------------------------------------------------------------------------------
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 $ 1,800(9)
- ------------------------------------------------------------------------------------------------
Earnings Multiple (1 if stub period, 0 if full twelve months) 12 0
- ------------------------------------------------------------------------------------------------
</TABLE>
(1) Net income for the twelve months ended December 31, 1997.
(2) Net Return assumes a reinvestment rate of 5.55 percent (the 1 year Treasury
at December 31, 1997), 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 Appraisal - No Foundation
Pro Forma Calculation
<TABLE>
<CAPTION>
Calculation of Estimated Value (V) at Midpoint Value
<S> <C> <C> <C>
3. V= P/E*Y = $1,800,000
-----
1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N)
2. V= P/B*(B+Z) = $1,800,000
---------
1-P/B*PCT*(1-X-E-M-F)
1. V= P/A*A = $1,800,000
-----
1-P/A*PCT*(1-X-E-M-F)
</TABLE>
<TABLE>
<CAPTION>
Total Shares Price Total
Conclusion Shares Per Share Value
- ---------- ------ --------- -----
<S> <C> <C> <C>
Appraised Value - Midpoint 180,000 $ 10 $ 1,800,000
Range:
- Minimum 153,000 $ 10 1,530,000
- Maximum 207,000 10 2,070,000
- Super Maximum 238,050 10 2,380,500
</TABLE>
<TABLE>
<CAPTION>
Pre Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum *
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Shares 153,000 180,000 207,000 238,050
Price per Share $ 10 $ 10 $ 10 $ 10
Full Conversion Value $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
Exchange Shares 0 0 0 0
Exchange Percent 0.00% 0.00% 0.00% 0.00%
Conversion Shares 153,000 180,000 207,000 238,050
Conversion Percent 100.00% 100.00% 100.00% 100.00%
Gross Proceeds $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
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 Appraisal - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of December 31, 1997
(Dollars in Thousands)
- --------------------------------------- --------------------------------------------------------------------
Conversion Proceeds Minimum Midpoint Maximum SuperMax
- --------------------------------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Shares Offered 153,000 180,000 207,000 238,050
Conversion Shares Offered 153,000 180,000 207,000 238,050
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 1,530 $ 1,800 $ 2,070 $ 2,381
Less: Est. Conversion Expenses 260 260 260 260
====================================================================
Net Proceeds $ 1,270 $ 1,540 $ 1,810 $ 2,121
====================================================================
- ---------------------------------------
Estimated Income from Proceeds
- ---------------------------------------
Net Conversion Proceeds $ 1,270 $ 1,540 $ 1,810 $ 2,121
Less: ESOP Adjustment (3) 122 144 166 190
Less: MRP Adjustment (3) 61 72 83 95
--------------------------------------------------------------------
Net Proceeds Reinvested $ 1,087 $ 1,324 $ 1,561 $ 1,836
Estimated Incremental Rate of Return 3.50% 3.50% 3.50% 3.50%
--------------------------------------------------------------------
Estimated Incremental Return $ 38 $ 46 $ 55 $ 64
Less: Amortization of ESOP (7) 8 9 10 12
Less: MRP Adjustment (7) 8 9 10 12
--------------------------------------------------------------------
Pro-forma Net Income 22 28 35 40
Earnings Before Conversion (54) (54) (54) (54)
--------------------------------------------------------------------
Earnings Excluding Adjustment (32) (26) (19) (14)
Earnings Adjustment (6) 146 146 146 146
--------------------------------------------------------------------
Earnings After Conversion $ 114 $ 120 $ 127 $ 132
--------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Exhibit 10 Appraisal - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of December 31, 1997
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
- ---------------------------------------
Pro-forma Net Worth
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Net Worth at December 31, 1997 $ 1,170 $ 1,170 $ 1,170 $ 1,170
Net Conversion Proceeds 1,270 1,540 1,810 2,121
Less: ESOP Adjustment (1) (122) (144) (166) (190)
Less: MRP Adjustment (2) (61) (72) (83) (95)
--------------------------------------------------------------------
Pro-forma Net Worth $ 2,257 $ 2,494 $ 2,731 $ 3,006
- ---------------------------------------
Pro-forma Assets
- ---------------------------------------
Total Assets at December 31, 1997 $ 16,723 $ 16,723 $ 16,723 $ 16,723
Net Conversion Proceeds 1,270 1,540 1,810 2,121
Less: ESOP Adjustment (1) (122) (144) (166) (190)
Less: MRP Adjustment (2) (61) (72) (83) (95)
--------------------------------------------------------------------
Pro-forma Total Assets $ 17,810 $ 18,047 $ 18,284 $ 18,559
--------------------------------------------------------------------
- ---------------------------------------
Stockholder's Equity Per Share
- ---------------------------------------
Net Worth at December 31, 1997 $ 7.65 $ 6.50 $ 5.65 $ 4.91
Estimated Net Proceeds 8.30 8.56 8.74 8.91
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 14.75 13.86 13.19 12.62
Less: Intangible - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth Per Share $ 14.75 $ 13.86 $ 13.19 $ 12.62
--------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Exhibit 10 Appraisal - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of December 31, 1997
(Dollars in Thousands)
-----------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
-----------------------------------------------------------------------
- ---------------------------------------
Net Earnings Per Share
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Historical Earnings Per Share (8) $ (0.38) $ (0.32) $ (0.28) $ (0.24)
Incremental return Per Share (8) 0.27 0.28 0.29 0.29
ESOP Adjustment Per Share (8) (0.06) (0.05) (0.05) (0.05)
MRP Adjustment Per Share (8) (0.06) (0.05) (0.05) (0.05)
Normalizing Adjustment Per Share 1.03 0.88 0.76 0.66
-----------------------------------------------------------------------
Proforma Earnings Per Share (8) $ 0.80 $ 0.74 $ 0.67 $ 0.61
- ---------------------------------------
Shares Utilized
- ---------------------------------------
Shares Utilized 142 167 192 221
- ---------------------------------------
Pro-forma Ratios
- ---------------------------------------
Price/EPS without Adjustment -43.48 -71.43 -111.11 -200.00
Price/EPS with Adjustment 12.50 13.51 14.93 16.39
Price/Book Value per Share 67.80% 72.15% 75.82% 79.24%
Price/Tangible Book Value 67.80% 72.15% 75.82% 79.24%
Market Value/Assets 8.59% 9.97% 11.32% 12.83%
-----------------------------------------------------------------------
</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) Retirement benefit accruals of $153,000, one time ALLL provision of $60,000
and write-offs of $18,000 tax impacted at 37%.
(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 Appraisal - No Foundation
<TABLE>
<CAPTION>
- ---------------------------------------
Expense Calculations
- ---------------------------------------
<S> <C> <C> <C> <C>
Total Shares Offered 153 180 207 238
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 1,530 $ 1,800 $ 2,070 $ 2,381
Estimated Insider Purchases - - - -
ESOP Purchases (122) (144) (166) (190)
--------------------------------------------------------------------
Proceeds to Base Fee On $ 1,408 $ 1,656 $ 1,904 $ 2,191
Underwriters Percentage 0.00% 0.00% 0.00% 0.00%
--------------------------------------------------------------------
Underwriters Fee $ - $ - $ - $ -
Advisory Fee - - - -
--------------------------------------------------------------------
Total Underwriters Fee - - - -
All Other Expenses 260 260 260 260
--------------------------------------------------------------------
Total Expense $ 260 $ 260 $ 260 $ 260
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Calculations -0.209150327 -0.144444444 -0.09178744 -0.058811174
- ---------------------------------------
Shares Outstanding 153 180 207 238 BV Share
Less: New ESOP Adjustment 12 14 17 19
Less: Old ESOP Adjustment (1) 0 0 0 0
Plus: New SOP 93-6 ESOP Shares (2) 1 1 2 2
Plus: Old SOP 93-6 ESOP Shares (2) 0 0 0 0
Shares for all EPS Calculations 142 167 192 221 EPS
1,224 1,440 1,656 1,904
Dilution of Stock Options 10.78%
Dilution of MRP 4.31%
</TABLE>
<TABLE>
<CAPTION>
Post Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Exchanged 153,000 180,000 207,000 238,050
Price per Share $ 10 $ 10 $ 10 $ 10
Shares Issued to Foundation - - - -
Total Shares 153,000 180,000 207,000 238,050
Exchange Shares - - - -
Conversion Shares 153,000 180,000 207,000 238,050
Implied Exhange Ratio - - - -
Gross Proceeds $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
Exchange Value $ - $ - $ - $ -
--------------------------------------------------------------------
</TABLE>
Page 7
<PAGE>
Exhibit 10 Appraisal - No Foundation
<TABLE>
<CAPTION>
- ---------------------------------------
MRP Dilution 6120 7200 8280 9522
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Outstanding 153 180 207 238
Less: New ESOP Adjustment 12 14 17 19
Less: Old ESOP Adjustment 0 0 0 0
Plus: New MRP issued (1) 6 7 8 10
Plus: New SOP 93-6 ESOP Shares (2) 1 1 2 2
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2) 816 960 1,104 1,270
Shares for all EPS Calculations 148 174 200 231
EPS $ (0.20) $ (0.13) $ (0.08) $ (0.05)
BV/Share $ 14.19 $ 13.32 $ 12.68 $ 12.14
Voting Dilution 4.30% 4.31% 4.32% 4.30%
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------
Option Dilution
- ---------------------------------------
<S> <C> <C> <C> <C>
Shares Outstanding 153 180 207 238
Less: New ESOP Adjustment 12 14 17 19
Less: Old ESOP Adjustment 0 0 0 0
Plus: Options (1) 15 18 21 24
Plus: New SOP 93-6 ESOP Shares (2) 1 1 2 2
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 157 185 213 245
EPS $ (0.20) $ (0.14) $ (0.09) $ (0.06)
BV/Share $ 14.32 $ 13.51 $ 12.90 $ 12.39
Voting Dilution 10.77% 10.78% 10.78% 10.77%
Aftertax expense $ - $ - $ - $ -
EPS $ 0.80 $ 0.74 $ 0.67 $ 0.61
Adjusted EPS $ 0.80 $ 0.72 $ 0.66 $ 0.60
</TABLE>
Page 8
<PAGE>
Exhibit 11 Offering Circular - No Foundation
Carnegie Savings Bank
Pro-Forma Analysis Sheet - Twelve Months Ended
December 31, 1997
Includes SOP 93-6
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
Bank Comparables State National
--------------------------------------------------------------------------------------------
Mean Median Mean Median Mean Median
---- ------ ---- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Min -43.48
Price-Earnings Ratio P/E Mid -71.43 29.05 27.01 23.34 19.72 24.16 20.34
- ------------------------ Max -111.11
Smax -200.00
Min 67.80%
Price-to-Book Ratio P/B Mid 72.15% 114.69% 108.45% 209.32% 185.91% 177.61% 158.38%
- ----------------------- Max 75.82%
Smax 79.24%
Min 67.80%
Price-to-Tangible Book Ratio P/TB Mid 72.15% 115.42% 110.33% 223.97% 191.01% 185.09% 162.52%
- --------------------------------- Max 75.82%
Smax 79.24%
Min 8.59%
Price-to-Assets Ratio P/A Mid 9.97% 27.53% 23.68% 19.99% 18.39% 20.86% 18.72%
- ------------------------- Max 11.32%
Smax 12.83%
</TABLE>
Page 1
<PAGE>
Exhibit 11 Offering Circular - No Foundation
Valuation Parameters
- --------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Prior Twelve Mos. Earning Base Y
Period Ended December 31, 1997 $ (54)1)
- ------------------------------------------------------------------------------------------
Pre-Conversion Book Value B
As of December 31, 1997 $ 1,170
- ------------------------------------------------------------------------------------------
Pre-Conversion Assets A
As of December 31, 1997 $ 16,723
- ------------------------------------------------------------------------------------------
Return on Money R 3.50%(2)
- ------------------------------------------------------------------------------------------
Conversion Expenses $ 260
X 14.44%(3)
- ------------------------------------------------------------------------------------------
Proceeds Not Invested $ 216(4)
- ------------------------------------------------------------------------------------------
Estimated ESOP Borrowings $ 144
ESOP Purchases E 8.00%(5)
Cost of ESOP Borrowings $ 14(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 $ 72(6)
MRP Purchases M 4.00%
MRP Expense $ 14
- ------------------------------------------------------------------------------------------
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 $ 1,800(9)
- ------------------------------------------------------------------------------------------
Earnings Multiple (1 if stub period, 0 if full twelve months) 12 0
- ------------------------------------------------------------------------------------------
</TABLE>
(1) Net income for the twelve months ended December 31, 1997.
(2) Net Return assumes a reinvestment rate of 5.55 percent (the 1 year Treasury
at December 31, 1997), 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 Offering Circular - No Foundation
Pro Forma Calculation
<TABLE>
<CAPTION>
Calculation of Estimated Value (V) at Midpoint Value
<S> <C> <C> <C>
3. V= P/E*Y = $1,800,000
-----
1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N)
2. V= P/B*(B+Z) = $1,800,000
---------
1-P/B*PCT*(1-X-E-M-F)
1. V= P/A*A = $1,800,000
-----
1-P/A*PCT*(1-X-E-M-F)
</TABLE>
<TABLE>
<CAPTION>
Total Shares Price Total
Conclusion Shares Per Share Value
- ---------- ------ --------- -----
<S> <C> <C> <C>
Appraised Value - Midpoint 180,000 $ 10 $ 1,800,000
Range:
- Minimum 153,000 $ 10 1,530,000
- Maximum 207,000 10 2,070,000
- Super Maximum 238,050 10 2,380,500
</TABLE>
<TABLE>
<CAPTION>
Pre Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum *
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Shares 153,000 180,000 207,000 238,050
Price per Share $ 10 $ 10 $ 10 $ 10
Full Conversion Value $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
Exchange Shares 0 0 0 0
Exchange Percent 0.00% 0.00% 0.00% 0.00%
Conversion Shares 153,000 180,000 207,000 238,050
Conversion Percent 100.00% 100.00% 100.00% 100.00%
Gross Proceeds $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
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 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of December 31, 1997
(Dollars in Thousands)
- --------------------------------------- --------------------------------------------------------------------
Conversion Proceeds Minimum Midpoint Maximum SuperMax
- --------------------------------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total Shares Offered 153,000 180,000 207,000 238,050
Conversion Shares Offered 153,000 180,000 207,000 238,050
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 1,530 $ 1,800 $ 2,070 $ 2,381
Plus: Value issued to Foundation (9) - - - -
--------------------------------------------------------------------
Pro Forma Market Capitalization 1,530 1,800 2,070 2,381
====================================================================
Gross Proceeds 1,530 1,800 2,070 2,381
Less: Est. Conversion Expenses 260 260 260 260
====================================================================
Net Proceeds $ 1,270 $ 1,540 $ 1,810 $ 2,121
====================================================================
- ---------------------------------------
Estimated Income from Proceeds
- ---------------------------------------
Net Conversion Proceeds $ 1,270 $ 1,540 $ 1,810 $ 2,121
Less: ESOP Adjustment (3) 122 144 166 190
Less: MRP Adjustment (3) 61 72 83 95
--------------------------------------------------------------------
Net Proceeds Reinvested $ 1,087 $ 1,324 $ 1,561 $ 1,836
Estimated Incremental Rate of Return 3.50% 3.50% 3.50% 3.50%
--------------------------------------------------------------------
Estimated Incremental Return $ 38 $ 46 $ 55 $ 64
Less: Cost of ESOP (4) - - - -
Less: Amortization of ESOP (7) 8 9 10 12
Less: MRP Adjustment (7) 8 9 10 12
--------------------------------------------------------------------
Pro-forma Net Income 22 28 35 40
Earnings Before Conversion (54) (54) (54) (54)
--------------------------------------------------------------------
Earnings Excluding Adjustment (32) (26) (19) (14)
Earnings Adjustment (6) - - - -
--------------------------------------------------------------------
Earnings After Conversion $ (32) $ (26) $ (19) $ (14)
--------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Exhibit 11 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of December 31, 1997
(Dollars in Thousands)
--------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
--------------------------------------------------------------------
- ---------------------------------------
Pro-forma Net Worth
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Net Worth at December 31, 1997 $ 1,170 $ 1,170 $ 1,170 $ 1,170
Net Conversion Proceeds 1,270 1,540 1,810 2,121
Plus: MHC Adjustment (7) - - - -
Plus: After tax Foundation Contribution - - - -
Less: ESOP Adjustment (1) (122) (144) (166) (190)
Less: MRP Adjustment (2) (61) (72) (83) (95)
--------------------------------------------------------------------
Pro-forma Net Worth $ 2,257 $ 2,494 $ 2,731 $ 3,006
- ---------------------------------------
Pro-forma Tangible Net Worth
- ---------------------------------------
Pro-forma Net Worth $ 2,257 $ 2,494 $ 2,731 $ 3,006
Less: Intangible (5) - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth $ 2,257 $ 2,494 $ 2,731 $ 3,006
- ---------------------------------------
Pro-forma Assets
- ---------------------------------------
Total Assets at December 31, 1997 $16,723 $16,723 $16,723 $16,723
Net Conversion Proceeds 1,270 1,540 1,810 2,121
Plus: MHC Adjustment (7) - - - -
Plus: Tax Benefit of Foundation - - - -
Less: ESOP Adjustment (1) (122) (144) (166) (190)
Less: MRP Adjustment (2) (61) (72) (83) (95)
--------------------------------------------------------------------
Pro-forma Assets Excluding Adjustment 17,810 18,047 18,284 18,559
Plus: Adjustment (6) - - - -
--------------------------------------------------------------------
Pro-forma Total Assets $ 17,810 $ 18,047 $ 18,284 $ 18,559
--------------------------------------------------------------------
- ---------------------------------------
Stockholder's Equity Per Share
- ---------------------------------------
Net Worth at December 31, 1997 $ 7.65 $ 6.50 $ 5.65 $ 4.91
Estimated Net Proceeds 8.30 8.56 8.74 8.91
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 14.75 13.86 13.19 12.62
Less: Intangible - - - -
--------------------------------------------------------------------
Pro-forma Tangible Net Worth Per Share $ 14.75 $ 13.86 $ 13.19 $ 12.62
--------------------------------------------------------------------
</TABLE>
Page 5
<PAGE>
Exhibit 11 Offering Circular - No Foundation
<TABLE>
<CAPTION>
Proforma Effect of Conversion Proceeds
As of December 31, 1997
(Dollars in Thousands)
------------------------------------------------------------------------
Minimum Midpoint Maximum SuperMax
------------------------------------------------------------------------
- ---------------------------------------
Net Earnings Per Share
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Historical Earnings Per Share (8) $ (0.38) $ (0.32) $ (0.28) $ (0.24)
Incremental return Per Share (8) 0.27 0.28 0.29 0.29
ESOP Adjustment Per Share (8) (0.06) (0.05) (0.05) (0.05)
MRP Adjustment Per Share (8) (0.06) (0.05) (0.05) (0.05)
Normalizing Adjustment Per Share - - - -
------------------------------------------------------------------------
Proforma Earnings Per Share (8) $ (0.23) $ (0.14) $ (0.09) $ (0.05)
- ---------------------------------------
Shares Utilized
- ---------------------------------------
Shares Utilized 142 167 192 221
- ---------------------------------------
Pro-forma Ratios
- ---------------------------------------
Price/EPS without Adjustment -43.48 -71.43 -111.11 -200.00
Price/EPS with Adjustment -43.48 -71.43 -111.11 -200.00
Price/Book Value per Share 67.80% 72.15% 75.82% 79.24%
Price/Tangible Book Value 67.80% 72.15% 75.82% 79.24%
Market Value/Assets 8.59% 9.97% 11.32% 12.83%
------------------------------------------------------------------------
</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 Offering Circular - No Foundation
<TABLE>
<CAPTION>
- ---------------------------------------
Expense Calculations
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Total Shares Offered 153 180 207 238
Price Per Share $ 10 $ 10 $ 10 $ 10
--------------------------------------------------------------------
Gross Proceeds $ 1,530 $ 1,800 $ 2,070 $ 2,381
Estimated Insider Purchases - - - -
ESOP Purchases (122) (144) (166) (190)
--------------------------------------------------------------------
Proceeds to Base Fee On $ 1,408 $ 1,656 $ 1,904 $ 2,191
Underwriters Percentage 0.00% 0.00% 0.00% 0.00%
--------------------------------------------------------------------
Underwriters Fee $ - $ - $ - $ -
Advisory Fee - - - -
--------------------------------------------------------------------
Total Underwriters Fee - - - -
All Other Expenses 260 260 260 260
--------------------------------------------------------------------
Total Expense $ 260 $ 260 $ 260 $ 260
- ---------------------------------------
Shares Calculations
- ---------------------------------------
Shares Outstanding 153 180 207 238
Less: New ESOP Adjustment 12 14 17 19
Less: Old ESOP Adjustment (1) 0 0 0 0
Plus: New SOP 93-6 ESOP Shares (2) 1 1 2 2
Plus: Old SOP 93-6 ESOP Shares (2) 0 0 0 0
- - - -
Shares for all EPS Calculations 142 167 192 221
Dilution of Stock Options 10.78%
Dilution of MRP 4.31%
</TABLE>
<TABLE>
<CAPTION>
Post Foundation
--------------------------------------------------------------------
Appraised Value
--------------------------------------------------------------------
Conclusion Minimum Midpoint Maximum SuperMaximum
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Issued and Exchanged 153,000 180,000 207,000 238,050
Price per Share $ 10 $ 10 $ 10 $ 10
Shares Issued to Foundation - - - -
Total Shares 153,000 180,000 207,000 238,050
Exchange Shares - - - -
Conversion Shares 153,000 180,000 207,000 238,050
Implied Exhange Ratio - - - -
Gross Proceeds $ 1,530,000 $ 1,800,000 $ 2,070,000 $ 2,380,500
Exchange Value $ - $ - $ - $ -
--------------------------------------------------------------------
</TABLE>
Page 7
<PAGE>
Exhibit 11 Offering Circular - No Foundation
<TABLE>
<CAPTION>
- ---------------------------------------
MRP Dilution
- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Outstanding 153 180 207 238
Less: New ESOP Adjustment 12 14 17 19
Less: Old ESOP Adjustment 0 0 0 0
Plus: New MRP issued (1) 6 7 8 10
Plus: New SOP 93-6 ESOP Shares (2) 1 1 2 2
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 148 174 200 231
EPS $ (0.20) $ (0.13) $ (0.08) $ (0.05)
BV/Share $ 14.19 $ 13.32 $ 12.68 $ 12.14
Voting Dilution 4.30% 4.31% 4.32% 4.30%
- ---------------------------------------
Option Dilution
- ---------------------------------------
Shares Outstanding 153 180 207 238
Less: New ESOP Adjustment 12 14 17 19
Less: Old ESOP Adjustment 0 0 0 0
Plus: Options (1) 15 18 21 24
Plus: New SOP 93-6 ESOP Shares (2) 1 1 2 2
Plus: Old SOP 93-6 ESOP Shares 0 0 0 0
(2)
Shares for all EPS Calculations 157 185 213 245
EPS $ (0.20) $ (0.14) $ (0.09) $ (0.06)
BV/Share $ 14.32 $ 13.51 $ 12.90 $ 12.39
Voting Dilution 10.77% 10.78% 10.78% 10.77%
Aftertax expense $ - $ - $ - $ -
EPS $ (0.23) $ (0.14) $ (0.09) $ (0.05)
Adjusted EPS $ (0.23) $ (0.16) $ (0.10) $ (0.06)
</TABLE>
Page 8
EXHIBIT 99.3
<PAGE>
QUESTIONS AND ANSWERS BROCHURE
[GRAPHIC OMITTED]
CARNEGIE SAVINGS BANK
MEMBER FDIC
Established 1891
Answers to Frequently Asked Questions
About Our Stock Conversion and
Your Opportunity to Invest in
Carnegie Financial Corporation Holding Company
the Proposed holding company of
Carnegie Savings Bank
<PAGE>
Questions and Answers Brochure
Page 2
You can be one of the initial stockholders of Carnegie Financial
Corporation , the proposed of Carnegie Savings Bank. Carnegie Financial
Corporation is "going public" as part of Carnegie Savings Bank' conversion from
a federally chartered mutual savings and loan association to a federally
chartered stock savings and loan association to be known as Carnegie Savings
Bank. Now you have the opportunity to invest in Carnegie Savings Bank by
purchasing stock in the initial offering of the . This brochure answers some of
the most frequently asked questions about the conversion to stock ownership and
about your opportunity to invest in Carnegie Financial Corporation
<PAGE>
Questions and Answers Brochure
Page 3
ABOUT THE TRANSACTION
1. WHAT IS A CONVERSION?
Carnegie Savings Bank is now a federally chartered mutual savings and
loan association with directors being elected by our members. After the
Conversion, we will be a stock savings and loan association owned by a
holding company. The holding company, Carnegie Financial Corporation ,
will be owned by stockholders who will have voting rights with respect
to certain key business matters. The holding company is offering shares
of common stock to certain depositors, borrowers , tax-qualified
employee plans of Carnegie Savings Bank and depending upon market
conditions and the availability of shares, may offer shares to selected
persons in a public offering.
2. WHAT IS Carnegie Financial Corporation AND WHY WAS IT FORMED?
Carnegie Financial Corporation is a newly organized holding company
created by Carnegie Savings Bank specifically to purchase 100%
ownership in Carnegie Savings Bank. The holding company currently has
no stockholders, but is offering shares of its common stock to certain
depositors, borrowers, tax-qualified employee plans of Carnegie Savings
Bank and depending upon market conditions and the availability of
shares, may offer shares to selected persons in a public offering. The
additional capital provided through the offering of Carnegie Financial
Corporation stock will support future banking activities and local
expansion of the financial services currently offered through Carnegie
Savings Bank.
3. WHAT ARE THE BENEFITS AND RISKS OF CONVERSION?
The Conversion and sale of stock will increase Carnegie Savings Bank'
capital, enabling it to do many things, including possibly the
following:
- support expansion of financial services - enhance ability to expand
through acquisitions - better compete with other financial institutions
- facilitate future access to the capital markets
Please review "Use of Proceeds" in the Prospectus for Carnegie Savings
Bank' and the holding company's initial plans with respect to the
capital to be raised in the Conversion.
There are certain risks in investing in Carnegie Financial Corporation
common stock. An offer is made only by a prospectus accompanied by a
stock order form and certification. Please review the prospectus prior
to making an investment decision, particularly the section entitled
"Risk Factors".
<PAGE>
Questions and Answers Brochure
Page 4
4. WILL THE CONVERSION HAVE ANY EFFECT ON MY SAVINGS OR LOAN
ACCOUNT?
No. The Conversion will not affect the general terms of your savings
account which will continue to be insured by the Federal Deposit
Insurance Corporation (FDIC) to the maximum legal limit. Your savings
account is not being converted to stock. The obligations of borrowers
under their loan agreements will not be affected.
5. HOW DO I BENEFIT FROM THE CONVERSION?
Eligible depositors and certain borrowers will be given the opportunity
to subscribe or place an order to purchase stock in Carnegie Financial
Corporation and thereby participate in any gain in the value of the
shares and future dividend payments, if any. Furthermore, the
additional capital will enable Carnegie Savings Bank to provide
expanded services to its customers and the community.
ABOUT PURCHASING STOCK
6. WHO MAY PURCHASE STOCK?
Carnegie Financial Corporation is currently conducting a Subscription
Offering. Persons listed below may have the opportunity to subscribe to
purchase Carnegie Financial Corporation 's common stock during the
Subscription Offering.
- Eligible Account Holders. Persons who had a savings deposit of at
least $50 at Carnegie Savings Bank on the Eligibility Record
Date, November 30, 1996.
- Tax Qualified Employee Plans of Carnegie Savings Bank.
- Supplemental Eligible Account Holders. Persons who had a savings
deposit of at least $50 on the Supplemental Eligibility Record
Date, _____________ 31, 1998.
- Other Members. Depositors and certain borrowers as of the Voting
Record Date, ___________31, 1998.
Carnegie Financial Corporation may, depending upon market conditions
and the availability of shares, offer stock to certain persons in a
public offering.
<PAGE>
Questions and Answers Brochure
Page 5
7. WHAT IS THE PRICE PER SHARE AND HOW MANY SHARES ARE BEING
OFFERED?
The aggregate value of Carnegie Financial Corporation stock has been
determined by an independent, nationally recognized appraisal firm. The
purchase price per share is $10.00. Up to 207,000 shares are being
offered for sale (or up to 238,050 shares under certain conditions such
as a change in market and financial conditions following commencement
of the Offering).
8. WILL EVERYONE PAY THE SAME PRICE FOR THE STOCK?
Yes. All subscribers, including Carnegie Savings Bank' Board of
Directors and management, will pay the same price during the Offering.
9. ARE DEPOSITORS OBLIGATED TO BUY STOCK?
No. But our depositors have a priority subscription right.
10. HOW MUCH STOCK MAY I BUY IN THE SUBSCRIPTION OFFERING?
The individual purchase limit is 5,000 shares. Individuals acting in
concert or groups of persons may purchase up to 7,500 shares. The
actual number of shares to be issued is expected to be between 153,000
and 207,000 (or up to 238,050 shares under certain conditions such as a
change in market and financial conditions following commencement of the
Offering).
11. WHAT IS THE MINIMUM AMOUNT OF STOCK I MAY BUY?
The minimum purchase limit is 25 shares.
12. IS THE STOCK INSURED BY THE FDIC?
No. Like any other common stock, Carnegie Financial Corporation stock
will not be insured by the FDIC or any governmental agency.
13. IN THE FUTURE, HOW MAY I PURCHASE MORE SHARES OR SELL MY
SHARES?
Carnegie Financial Corporation has applied to have the common stock
quoted on the Nasdaq. No assurance can be given, however, that the
Carnegie Financial Corporation 's stock will be quoted on the Nasdaq or
that an active and liquid market for the common stock will develop or
that an investor will be able to resell the common stock at or above
the purchase price after Conversion.
<PAGE>
Questions and Answers Brochure
Page 6
14. WILL THERE BE ANY DIVIDENDS?
Carnegie Financial Corporation does not currently intend to pay
dividends on its common stock. The declaration and payment of dividends
are subject to, among other things, the financial conditions and
results of operations of Carnegie Financial Corporation , Carnegie
Savings Bank' compliance with its capital requirements, tax
considerations, industry standards and other factors.
15. HOW DO I ORDER STOCK AND WHAT METHODS CAN BE USED FOR PAYMENT OF MY
STOCK PURCHASES?
Complete the stock order form and certification as instructed. Be sure
to indicate the number of shares you wish to purchase and the total
amount remitted (multiply the number of shares subscribed for by $10.00
per share.) Total payment for purchases in the Subscription Offering
must accompany the order form and be received by Carnegie Financial
Corporation prior to 12:00 noon, Carnegie, PA time, on ________, 1998.
The payment options for stock purchases are as follows:
- Check or money order sent or delivered to Carnegie Savings Bank or
the Stock Center. If payment is made by check or money order,
interest will be earned at the passbook rate until the Conversion
is completed.
- Withdrawal of funds from any existing account of Carnegie Savings
Bank in an amount equal to the Purchase Price (which is $10.00 per
share) times the number of shares ordered. Penalties for early
withdrawal from an Carnegie Savings Bank account will be waived
when purchasing stock in the Subscription Offering. Once
authorization for withdrawal of funds has been made, the
subscriber may not withdraw the designated amount unless the Plan
of Conversion is terminated or as otherwise required by regulatory
authorities. All funds maintained in savings accounts are insured
by the FDIC up to legally applicable limits and will earn interest
until completion of the Conversion.
- Orders of $25,000 or more must be paid by Carnegie Savings Bank
account withdrawals, certified funds, cashier's check, or money
orders.
- IRA purchases. If you wish to purchase shares of Carnegie
Financial Corporation stock for an IRA account, either at Carnegie
Savings Bank or elsewhere, we may be able to accommodate you.
Please contact the Stock Center as soon as possible at (412) 276-
0535 so that we may assist you with the appropriate procedures for
such a purchase. It is important that you contact us soon because
making the IRA arrangements takes time.
<PAGE>
Questions and Answers Brochure
Page 7
16. MAY I CHANGE MY MIND?
The stock order form you executed cannot be canceled or withdrawn.
However, you may order additional shares by completing another stock
order form, subject to the maximum purchase limitations.
17. ARE MY SUBSCRIPTION RIGHTS TRANSFERABLE?
No. No person may transfer or enter into any agreement to transfer his
or her subscription rights issued under the Plan of Conversion, or the
shares to be issued upon the exercise of such rights. Persons violating
such prohibition will lose their right to purchase stock in the
Conversion and may be subject to further government sanctions.
ABOUT MEMBERS' VOTING RIGHTS
18. WHO IS ELIGIBLE TO VOTE ON THE PLAN OF CONVERSION?
Depositors at the Voting Record Date of___________, 1998 who continue
to be depositors at the date of the Special Meeting are eligible to
vote.
19. HOW IS THE NUMBER OF VOTES DETERMINED?
Each deposit account holder is entitled to cast one vote for each $100,
or fraction thereof, of the aggregate withdrawal value of all such
account holder's deposit accounts on the Voting Record Date. The
maximum number of votes per person is 1,000.
20. IF I VOTE FOR THE PLAN OF CONVERSION ON THE PROXY CARD, WILL I BE
OBLIGATED TO PURCHASE Carnegie Financial Corporation STOCK?
No. Signing the proxy card and voting for the Conversion in no way
obligates you to purchase Carnegie Financial Corporation stock. All
members are urged to vote for the Conversion. THE BOARD OF DIRECTORS
HAS UNANIMOUSLY APPROVED THE PLAN OF CONVERSION AND RECOMMENDS MEMBERS
VOTE "FOR" APPROVAL OF THE PLAN OF CONVERSION.
21. WHAT HAPPENS IF I DON'T VOTE?
Failing to vote could be equivalent to voting against the Plan of
Conversion. YOUR VOTE IS EXTREMELY IMPORTANT! Please sign and mail
your proxy card(s) now.
22. MAY I COME TO THE SPECIAL MEETING AND VOTE?
<PAGE>
Questions and Answers Brochure
Page 8
Yes. However, every member is encouraged to send a proxy card(s) to
Carnegie Savings Bank prior to the meeting even if the member plans to
attend the special meeting. The proxy is revocable and can be changed
by submitting a later dated proxy or by casting a ballot at the
meeting.
23. I RECEIVED MORE THAN ONE PROXY CARD. CAN I VOTE THEM ALL?
Yes. Please vote ALL the proxy cards you receive. You may have more
than one account in different registrations. While some accounts have
been consolidated, it is not permissible to consolidate all accounts.
24. IF A SAVINGS ACCOUNT IS IN JOINT NAME, MUST BOTH NAMES BE SIGNED ON THE
PROXY CARD?
No. Two or more signatures are required only when two or more
signatures are needed to withdraw funds from the account.
25. IF I DON'T BUY STOCK WILL I HAVE A VOTE AT FUTURE ANNUAL MEETINGS?
No. After the Conversion, only stockholders will have voting rights.
However, the operations of Carnegie Savings Bank and the general terms
and balances of your deposit accounts and loans will remain unchanged.
26. HOW MAY I GET MORE INFORMATION?
We hope that these questions and answers, combined with the Prospectus
and the Proxy Statement, will help you better understand the Conversion
and the stock offering. You are urged to carefully review the
Prospectus and Proxy Statement before making an investment or voting
decision. If you desire further information, please contact the Stock
Center at:
Telephone: (412)276-0535
<PAGE>
Questions and Answers Brochure
================================================================================
I M P O R T A N T
P R O X Y R E M I N D E R
================================================================================
CARNEGIE SAVINGS BANK
MEMBER FDIC
Established 1891
Carnegie Financial Corporation
YOUR VOTE ON Carnegie Financial Corporation'S STOCK CONVERSION IS VERY
IMPORTANT.
VOTING FOR THE CONVERSION WILL NOT AFFECT THE INSURANCE OF YOUR DEPOSIT ACCOUNT.
YOUR ACCOUNT WILL CONTINUE TO BE INSURED UP TO THE MAXIMUM LEGAL LIMIT BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, AN AGENCY OF THE U.S. GOVERNMENT.
REMEMBER, VOTING FOR THE CONVERSION DOES NOT OBLIGATE YOU TO BUY ANY STOCK.
PLEASE ACT PROMPTLY! SIGN YOUR PROXY CARD(S) AND MAIL OR DELIVER THEM TO
Carnegie Financial Corporation TODAY. WE RECOMMEND THAT YOU VOTE FOR THE PLAN OF
CONVERSION.
THE BOARD OF DIRECTORS
CARNEGIE SAVINGS BANK
================================================================================
If you have already mailed your proxy card(s), please
accept our thanks and disregard this request.
For Further Information, Please Call
The Stock Center
At (412) 276-0535
- --------------------------------------------------------------------------------
THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO
BUY THESE SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A
STOCK ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY
CONTACTING THE STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A
DEPOSIT OR ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
<PAGE>
PLACARD/LOBBY POSTER FOR EACH BRANCH OFFICE - Approx. 2 1/2' X 4'
[GRAPHIC OMITTED]
CARNEGIE SAVINGS BANK
MEMBER FDIC
Established 1891
Carnegie Financial Corporation is Going Public!
You may now own a part of Carnegie Savings Bank
by purchasing shares of stock
in the holding company, Carnegie Financial Corporation
Please take a prospectus, and
for further information about the stock offering
call the Stock Center at
(412) 276-0535
- --------------------------------------------------------------------------------
THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO
BUY THESE SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A
STOCK ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY
CONTACTING THE STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A
DEPOSIT OR ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
<PAGE>
NEWSPAPER ADVERTISEMENT
NEW ISSUE
[GRAPHIC OMITTED]
CARNEGIE SAVINGS BANK
MEMBER FDIC
Established 1891
Carnegie Financial Corporation
the proposed holding company for
Carnegie Savings Bank is going
public!
Up to ________ shares of Common Stock are being
offered at a Subscription Price of $10.00 per
share.
For Information Call:
Stock Center
Telephone (412) 276-0535
or stop by the Stock Center located at
17 west Mall Plaza
Carnegie, Pennsylvia 15106
The Subscription Offering period deadline is 12:00 Noon, Carnegie, PA Time
__________, 1998.
- --------------------------------------------------------------------------------
THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO
BUY SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A STOCK
ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY CONTACTING THE
STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A DEPOSIT OR
ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
<PAGE>
YOU'RE INVITED
You are cordially invited to attend our Community Meeting where you will find
out more about Carnegie Savings Bank and our stock offering including...
o A presentation by senior management discussing Carnegie Savings Bank
strategy and performance.
o An explanation of Carnegie Savings Bank plan for converting to a stock
form of ownership.
o A question and answer period, followed by a reception where you can
personally meet and talk with the officers and directors of Carnegie
Savings.
There will be no sales pressure. You will receive Carnegie Financial Corporation
stock offering materials, including a prospectus. It is up to you to decide if a
stock purchase matches your investment objectives.
For more details Carnegie Finacial Corporation stock offering, attend this
informative and convenient Community Meeting:
Location:
Date:
Time:
Seating is limited, so please call and reserve your seat. To make a reservation
or to receive a prospectus, call (412) 276-0535.
Share Our Future.
- --------------------------------------------------------------------------------
THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO
BUY SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A STOCK
ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY CONTACTING THE
STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A DEPOSIT OR
ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
<PAGE>
1. Letter to Members and Friends (Closed Accounts)
May ___, 1998
Dear Members and Friends:
The Board of Directors of Carnegie Savings Bank ("Carnegie Savings") has
adopted a plan to convert from a federally chartered mutual savings and loan
association to a federally chartered stock savings bank (the "Conversion"). As a
stock company, Carnegie Savings will be structured under the same form of
ownership used by most businesses and banks. This Conversion to stock ownership
means Carnegie Savings will increase its capital and will enable Carnegie
Savings to support future banking activities. The Conversion will not affect
your deposit accounts or loans with Carnegie Savings or existing FDIC insurance
coverage for your deposit accounts.
As part of the Conversion, Carnegie Savings has formed a holding company,
Carnegie Financial Corporation Carnegie Financial Corporation will own all of
the common stock of Carnegie Savings Financial Corporation. Carnegie Financial
Corporation is offering up to 207,000 shares of its common stock to customers of
Carnegie Savings at a subscription price of $10.00 per share. As a depositor on
either__________, 1996, March 31, 1998, or ____________1998, or, as a borrower
as of February 25, 1998 you have a preferential right to subscribe to purchase
the stock of Carnegie Financial Corporation during the Subscription Offering
without paying a fee or commission. For your convenience this packet includes
the following material:
o PROSPECTUS containing detailed information about Carnegie Savings and
the stock offering. Please read the Prospectus carefully before making
your investment decision.
o BROCHURE which answers questions about the Conversion and stock
offering.
o STOCK ORDER FORM and CERTIFICATION to be completed in order to
purchase shares of Carnegie Financial Corporation stock. Payment by
check or written authorization to withdraw from a specified Carnegie
Savings account must accompany each order form and certification.
Orders of $25,000 or more must be paid by Carnegie Savings account
withdrawals, certified funds, cashier's check, or money order. Order
forms must be received by Carnegie Savings no later than 12:00 noon,
Canegie, Pennsylvania time on _________, 1998.
If you would like to purchase Carnegie Financial Corporation stock in
your IRA account, using IRA funds, we may be able to accommodate you. Please
contact the Stock Center as soon as possible at (518) 843-4494.
<PAGE>
Letter to Members and Friends
Page 2
If you are a current member of Carnegie Savings, you will also find
enclosed a proxy statement and proxy card(s). On behalf of the Board, we ask
that you help Carnegie Savings take this important step by signing the enclosed
proxy card(s), casting your vote in favor of the Plan of Conversion. Your vote
is very important! Please mail your proxy card(s) today in the enclosed postage
paid return envelope.
We believe it is in the best interest of Carnegie Savings to have our
customers and members of the communities we serve as our stockholders. We
encourage you to review this investment opportunity carefully. If you have any
questions, please call the Stock Center at (412) 276-0535.
Sincerely,
Shirley Chiesa
President and Chief
Executive Officer
Enclosures
- --------------------------------------------------------------------------------
THIS LETTER IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
THESE SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A
STOCK ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY
CONTACTING THE STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A
DEPOSIT OR ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
<PAGE>
2. Letter for branch packages, Stock Center, non-members.
May ____, 1998
Dear Prospective Investor:
Carnegie Savings Bank ("Carnegie Savings") is converting from a federal
mutual savings bank to a federal stock savings bank (the "Conversion").
As part of the Conversion, Carnegie Savings has formed a holding company,
Carnegie Financial Corporation Carnegie Financial Corporation will own all of
the common stock of Carnegie Savings. Carnegie Financial Corporation is offering
to customers of Carnegie Savings up to 207,000 shares of its common stock at a
purchase price of $10.00 per share. Even if you are not currently a member of
Carnegie Savings, you may have the opportunity to purchase shares without paying
a fee or commission. Members have priority rights to purchase shares in the
Subscription Offering and no assurance can be given that your order will be
filled.
For your convenience, enclosed are the following materials:
o PROSPECTUS containing detailed information about Carnegie Savings and
the stock offering. Please read the prospectus carefully before making
your investment decision.
o STOCK ORDER FORM and CERTIFICATION to be completed in order to
purchase shares of Carnegie Financial Corporation stock. Payment by
check or written authorization to withdraw from a specified Carnegie
Savings account must accompany each order form and certification.
Orders of $25,000 or more must be paid by Carnegie Savings account
withdrawals, certified funds, cashier's check or money orders. If you
are interested in purchasing shares of Carnegie Financial Corporation
stock, your completed stock order form and certification along with
payment must be received by Carnegie Savings by no later than 12:00
noon, Eastern time on ________, 1996.
We encourage you to review this investment opportunity carefully. If you
have any questions, please call our Stock Center at (412) 276-0535.
<PAGE>
Letter for Branch Packages, Stock Center, non-members
Page 2
We are pleased to offer you this opportunity to invest in Carnegie
Financial Corporation
Sincerely,
Shirley Chiesa
President
Enclosures
- --------------------------------------------------------------------------------
THIS LETTER IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
THESE SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A
STOCK ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY
CONTACTING THE STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A
DEPOSIT OR ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED
- --------------------------------------------------------------------------------
<PAGE>
3. Capital Resources Cover Letter to Blue Sky States
May __, 1998
To Depositors and Friends of Carnegie Savings Bank:
Capital Resources, Inc. is an NASD member broker/dealer assisting
Carnegie Savings Bank ("Carnegie Savings") in its conversion from a mutual to a
stock organization.
At the request of Carnegie Savings and Carnegie Financial Corporation,
the proposed parent holding company of Carnegie Savings, we enclose certain
materials regarding the sale and issuance of common stock in connection with the
conversion of Carnegie Savings. These materials include a prospectus which
offers you the opportunity to subscribe to purchase shares of common stock of
Carnegie Financial Corporation
We have been asked to forward these documents to you in view of certain
requirements of the securities laws of your state. We should not be understood
as recommending or soliciting in any way any action by you with regard to the
enclosed materials. If you have any questions, please contact us at the Stock
Center at (412) 276-0535.
Very truly yours,
Capital Resources, Inc.
Enclosures
- --------------------------------------------------------------------------------
THIS LETTER IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
THESE SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A
STOCK ORDER FORM AND CERTIFICATION, COPIES OF WHICH MAY BE OBTAINED BY
CONTACTING THE STOCK CENTER. THE COMMON STOCK OFFERED IN THE CONVERSION IS NOT A
DEPOSIT OR ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
<PAGE>
4. Letter to Members in "Dark Blue-Sky" States and Foreign Accounts
May ___, 1998
Dear Member:
Carnegie Savings Bank ("Carnegie Savings") is converting from a federal
mutual savings and loan association to a federal stock savings bank with the
concurrent formation of a holding company, Carnegie Financial Corporation
Enclosed you will find a Proxy Statement and Prospectus describing the
conversion and proxy card(s). As a current member of Carnegie Savings, we ask
you to participate in the conversion by reviewing the information provided and
voting on the conversion by completing and mailing the enclosed proxy card(s) in
the enclosed postage-paid envelope as soon as possible. The Board of Directors
recommends that you vote in favor of the Plan of Conversion.
Although you may vote on Carnegie Savings's Plan of Conversion, Carnegie
Financial Corporation unfortunately is unable to either offer or sell its common
stock to you because (i) the small number of eligible subscribers in your
jurisdiction makes registration or qualification of the common stock under the
securities laws of your jurisdiction impractical, for reasons of cost or
otherwise; or (ii) the small number of eligible subscribers in your jurisdiction
makes registration or qualification of Carnegie Financial Corporation, its
officers, directors, employees and persons acting on its behalf as broker/dealer
in your jurisdiction impractical, for reasons of cost or otherwise. Accordingly,
neither this letter nor the enclosed material should be considered an offer to
sell or a solicitation of an offer to buy the common stock of Carnegie Financial
Corporation
If you have any questions about your voting rights or the conversion in
general, please call the Stock Center at (412) 276-0535.
Sincerely,
Shirley Chiesa
President
Enclosures
- --------------------------------------------------------------------------------
THIS LETTER IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
THESE SECURITIES. THE OFFER IS MADE ONLY BY THE PROSPECTUS ACCOMPANIED BY A
STOCK ORDER FORM AND CERTIFICATION. THE COMMON STOCK OFFERED IN THE CONVERSION
IS NOT A DEPOSIT OF ACCOUNT AND IS NOT FEDERALLY INSURED OR GUARANTEED.
- --------------------------------------------------------------------------------
