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<PAGE>
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Reprinted
from
SNLSecurities
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SNLSecurities ThriftINVESTOR 5 MAY 2000 Vol. 14 No. 5
--------------------------------------------------------------------------------
The Song Remains
The Same
Queens County Bancorp still leads the pack.
--------------------------------------------------------------------------------
By Steve Evans
-------
TOP 100
THRIFTS
-------
As Mel Brooks once declared, "It's good to be the king." In the dwindling
savings and loan industry, it's better still, perhaps, to retain the throne year
after year.
Brooks has never shot the second part of his movie "History of the World,
Part I," but at ThriftINVESTOR we've compiled our second annual performance
ranking of the top 100 publicly traded thrifts -- a short history chronicling
the rise and fall of key institutions in the industry. Once again this year, it
was good to be the queen.
Queens County Bancorp Inc., a $1.9 billion thrift with 12 branches in the
New York City borough and a lone branch in adjacent Nassau County, continues
to focus on large, multifamily loans in the thriving metropolitan New York area.
The thrift focuses on lending for rent-controlled apartment buildings, which
provide a secure revenue stream for property owners. And that helps Queens
County maintain a spotless balance sheet. That's the key to its success. Queens
County far and away outranks competitors for the throne, with a return on
average equity of 23.24% and a core earnings-per-share growth rate of 26.12%.
Queens County also holds first place in our three-year ranking of thrift
performance, which is probably of greater importance to value investors.
Second-place Andover Bancorp Inc., in comparison, rolled up core ROAE of 15.24%
in 1999 and core EPS growth of 12.29%.
Still, Queens County's shimmering performance presents a paradox for
potential investors and would-be acquirers. Through the end of the first
quarter, the thrift was trading at more than 3x book value and more than 12x
earnings on a trailing-12-month basis. The market's perceived value of the
franchise is a clear disincentive for Queens County to be acquired, said
Friedman, Billings, Ramsey & Co. analyst Mike McDonough. If so, then continued
growth at Queens County may hinge on the thrift's ability to make an acquisition
of its own and expand the asset base, he said. That is, if current shareholders
expect to see a comparable pop in the value of their stock.
"It's a high-quality shop and if they were to be acquired somebody is
certainly going to have to pay
--------------------------------------------------------------------------------
Steve Evans is a senior newswriter for SNL Securities
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Methodology
ThriftINVESTOR's performance rankings for the 100 largest thrifts does not
rely on complex metrics. In fact, the rankings criteria are all rudimentary: The
six categories are Return on Average Equity, Return on Average Assets,
Efficiency Ratio, Three-Year Earnings Per Share Growth Rate, Nonperforming
Assets to Total Assets and Net Charge-offs to Average Loans. The last two
categories, because they are both used to measure credit quality, were given
half weight in the calculation. All data was gathered from the SNL Financial
DataSource.
ROAE, the most fundamental in the minds of many, was calculated by
dividing net income or net loss of income by average total equity.
ROAA was calculated by dividing net income or net loss of income by
average total assets.
Efficiency Ratio was calculated by taking noninterest expense,
subtracting foreclosed property expense and the amortization of intangibles, and
dividing the result by net interest income (its fully taxable equivalent, where
available) plus noninterest income.
For Three-Year Earnings Per Share Growth Rate, we used the more
conservative of three-year compound annual growth rate and three-year median
annual growth rate. More conservative means the lesser of the two numbers,
unless either number was negative, in which case the greater of the two was
utilized. For companies with fewer than three years of data, the median annual
EPS growth over the available time periods was utilized.
The Ratio of Nonperforming Assets to Total Assets is defined as the sum of
nonperforming loans (including renegotiated loans) and assets acquired through
foreclosure, expressed as a percentage of total assets.
The Ratio of Net Charge-offs to Average Loans, defined as total loans
charged off during the period (excluding operating leases and loans held for
sale), minus recoveries, expressed as a percentage of average loans during the
period.
While recent performance is of greater importance to many investors,
rankings based on a single year can yield distorted results. For that reason,
ThriftINVESTOR elected to present performance rankings for both 1999 and over a
three-year period.
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<PAGE>
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ThriftINVESTOR
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a handsome premium for the franchise -- and they deserve it," McDonough said.
"I'm not sure whose shareholders are willing to approve a deal for, say, four
times book. That's a lot of premium. On the other side, in this market, anybody
who's even rumored as being an acquirer gets pounded. That happened to Queens
County. There was some thought out in the market that they were looking to do an
acquisition to get help on the funding side -- they have the asset-generation
capability -- and their stock certainly suffered on the rumor," McDonough said.
"For somebody to be looking at Queens, the market is probably not going to react
real favorably to paying four times book value for a company. That's not what
investors want to hear, even if it were to be a good deal. Just on the numbers,
people are going to look and say, 'Oh, my God: somebody's willing to pay four
times book for something.' And I think that's a hurdle somebody's going to have
to overcome if they were to look seriously at the franchise."
The same would probably hold true for other thrifts in the upper tier of
our list, where the top thrifts all trade at high multiples. In crunching the
numbers for the performance rankings -- which take into account such fundamental
factors as profitability, growth in earnings per share, operating efficiency
and credit quality -- we found considerable reshuffling between the 1999 and
1998 lists (a more complete explanation for the methodology appears on page 24).
Takeouts also influenced the rankings. Andover, for instance, climbed from
fourth place last year to occupy the second-place slot formerly held by JSB
Financial Inc., which was acquired by North Fork Bancorp.
Now North Fork is attempting a hostile takeover of Dime Bancorp Inc. Dime
struggled with its own proposed merger with Hudson United Bancorp, which was
called off on April 28. Dime slipped to 36th place in our latest rankings, down
from 18th in 1999. While it's important to note than we employed more
conservative calculations in the latest rankings, the $23.9 billion Dime
franchise continues to post slow EPS growth -- a vital component of the
performance evaluation. Three year Core EPS growth was 7.73%, with diluted EPS
growth of 68.4% from 1995 to 1998. Dime in April reported its 15th-consecutive
quarter of record earnings, which Chairman and CEO Lawrence J. Toal called "all
the more satisfying because they were accomplished despite a challenging
interest rate environment, merger integration planning and the distraction of
dealing with a hostile takeover attempt." Stay tuned, as that battle will
undoubtedly rage throughout the year.
Top Performers
In calculating the rankings, it came as no surprise that hyper-vigilant
lending practices, a tight rein on expenses and sterling assets are the engines
driving superior thrift performance. Moreover, the ratings demonstrate
convincingly that size is not a factor in performance, since seven of the top 10
savings and loans hold assets of less than $5 billion each. The performance data
also show the smaller players are rising rapidly through the ranks. For example,
Hudson City Bancorp (MHC) was still a mutual thrift just a year ago. Buoyed by
an IPO in July 1999 and solid earnings through the end of the calendar year, the
$8.52 billion thrift rocketed to 11th place on the ThriftINVESTOR scoreboard in
its first year of public trading. Missouri-based NASB Financial Inc. held onto
third place and Washington Federal Inc. cracked the Top 10 to occupy fourth
place. First Federal Capital Corp. surged to fifth place from last year's
ranking in the 23rd slot. With approximately $2.1 billion in assets, First
Federal unseated Golden West Financial Corp., which slid to 18th place. The
$42.1 billion Golden West specializes in the ultracompetitive arena of
adjustable-rate mortgages.
Washington Mutual Inc., the nation's largest thrift with $186.5 billion in
assets, finished in eighth place. Core EPS growth was 31.65%. Management said in
April that the thrift should be able to boost earnings with a greater emphasis
on consumer finance and consumer loans, which tend to reprice more quickly in a
climate of rising interest rates than traditional mortgages and mortgage-backed
securities. Separately, the thrift reported a 5.8% decline in deposit share for
the California market, in which Washington Mutual is a major competitor, for the
12-month period ending June 30, 1999.
The greatest one-year leap in performance was posted by Astoria Financial
Corp., which catapulted into ninth place from its previous position in 83rd
place. Astoria achieved an efficiency ratio of 32.75%, with a core ROAE of
16.66%. A year ago, Astoria's efficiency ratio was 47.05%. The surge was almost
exclusively attributable to the September 1998 merger with Long Island Savings
Bank, said Astoria's Peter Cunningham, first vice president and director of
investor relations.
"We were able to get all systems converted within 30 days after the close
of the transaction," Cunningham said. "As result, we were able to recognize 100%
of the cost savings within the first quarter. Now what that did was make our
efficiency ratio among the lowest in the industry [at
continued on page 6
MAY 2000 -2-
<PAGE>
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ThriftINVESTOR
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Table 1
SNL's Top 100 Publicly-Traded Thrifts
<TABLE>
<CAPTION>
Core Core EPS Efficiency NPAs/
Total Assets Performance ROAE Growth Ratio Assets
Company Name (3-Year Rank) Ticker ($000) Score (%) (%) (%) (%)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Queens County Bancorp Inc. (1) QCSB 1,906,835 95.5 23.24 26.12 29.00 0.15
---------------------------------------------------------------------------------------------------------------------------
2 Andover Bancorp Inc. (4) ANDB 1,491,054 84.9 15.24 12.29 42.33 0.17
---------------------------------------------------------------------------------------------------------------------------
3 NASB Financial Inc. (3) NASB 825,737 77.1 17.07 13.93 47.84 1.31
---------------------------------------------------------------------------------------------------------------------------
4 Washington Federal Inc. (2) WFSL 6,163,503 77.1 14.77 8.02 18.04 0.54
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5 First Federal Capital Corp. (6) FTFC 2,084,554 76.3 17.63 18.12 59.65 0.10
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6 People's Bancshares Inc. (16) PBKB 1,071,176 75.7 25.90 32.57 62.57 0.07
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7 First Bell Bancorp Inc. (5) FBBC 816,122 74.8 12.46 8.94 39.23 0.08
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8 Washington Mutual Inc. (15) WM 186,513,630 74.8 20.13 31.65 45.93 0.55
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9 Astoria Financial Corp. (42) ASFC 22,696,536 74.5 16.66 5.91 32.75 0.24
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10 MAF Bancorp Inc. (9) MAFB 4,658,065 73.6 14.62 12.86 45.55 0.48
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11 Hudson City Bancorp Inc. (MHC) (7) HCBK 8,518,865 73.4 9.05 NA 27.67 0.14
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12 Brookline Bancorp Inc. (MHC) (11) BRKL 907,334 72.5 6.73 NA 25.61 0.08
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13 Flushing Financial Corp. (19) FFIC 1,249,529 72.4 10.27 36.91 51.64 0.29
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14 American Bank of Connecticut (12) BKC 763,155 72.0 14.77 18.49 46.20 0.70
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15 Parkvale Financial Corp. (10) PVSA 1,201,880 71.3 14.49 8.33 45.43 0.27
---------------------------------------------------------------------------------------------------------------------------
16 Roslyn Bancorp Inc. (13) RSLN 7,725,183 71.2 10.82 NA 32.47 0.25
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17 FirstFed Financial Corp. (29) FED 3,856,505 71.1 14.91 27.06 44.91 0.40
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18 Golden West Financial Corp. (20) GDW 42,142,205 70.8 14.57 2.68 34.58 0.59
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19 ITLA Capital Corp. (8) ITLA 1,115,823 70.6 14.23 17.55 38.57 2.06
---------------------------------------------------------------------------------------------------------------------------
20 Charter One Financial Inc. (17) CF 31,819,063 70.2 15.23 8.86 45.49 0.42
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21 Anchor BanCorp Wisconsin Inc. (24) ABCW 2,663,581 69.8 17.14 10.42 51.93 0.25
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22 Ottawa Financial Corp. (27) OFCP 1,017,168 68.6 12.42 21.10 53.71 0.16
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23 Peoples Heritage Financial Group Inc. (26) PHBK 13,919,126 68.0 18.53 12.28 53.16 0.40
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24 MECH Financial Inc. ^1 (38) MECH 1,119,693 67.7 16.28 NA 53.94 0.20
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25 GreenPoint Financial Corp. (25) GPT 15,401,077 67.3 11.60 18.84 46.74 1.47
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26 First Sentinel Bancorp Inc. (30) FSLA 1,904,696 67.1 7.83 NA 38.09 0.15
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27 Harbor Florida Bancshares Inc. (14) HARB 1,462,550 65.0 8.54 NA 42.30 0.24
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27 Webster Financial Corp. (44) WBST 9,931,744 65.0 15.88 15.89 56.33 0.43
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29 Flagstar Bancorp Inc. (21) FLGS 4,310,039 63.3 21.37 17.16 52.30 1.47
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30 Capitol Federal Financial (MHC) (23) CFFN 6,539,315 63.1 6.32 NA 36.25 0.09
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31 First Northern Capital Corp. ^1 (31) FNGB 839,623 63.1 9.60 14.02 56.15 0.08
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32 Dime Community Bancshares Inc. (52) DCOM 2,247,615 63.0 9.89 NA 42.86 0.23
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33 Quaker City Bancorp Inc. (57) QCBC 1,013,437 63.0 11.47 40.03 48.31 0.74
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34 Staten Island Bancorp Inc. (18) SIB 4,489,314 62.6 8.59 NA 47.24 0.30
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35 Medford Bancorp Inc. (22) MDBK 1,224,912 62.5 12.45 7.52 48.57 0.20
---------------------------------------------------------------------------------------------------------------------------
36 Dime Bancorp Inc. (51) DME 23,921,325 61.9 16.11 7.73 58.33 0.41
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37 Richmond County Financial Corp. (28) RCBK 2,760,095 61.4 7.27 NA 45.29 0.25
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38 St. Francis Capital Corp. (47) STFR 2,473,356 61.2 13.25 21.88 60.42 0.13
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39 PennFed Financial Services Inc. (33) PFSB 1,558,763 61.0 11.05 11.21 43.79 0.30
---------------------------------------------------------------------------------------------------------------------------
40 WSFS Financial Corp. (35) WSFS 1,753,820 60.3 22.59 10.94 66.66 0.48
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41 Hawthorne Financial Corp. (32) HTHR 1,581,153 59.0 15.12 26.92 48.35 3.14
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42 OceanFirst Financial Corp. (53) OCFC 1,590,907 58.7 8.92 NA 51.71 0.21
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43 PBOC Holdings Inc. (77) PBOC 3,398,228 58.4 16.82 7.03 52.76 0.31
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44 Provident Financial Holdings Inc. (84) PROV 957,431 58.3 12.70 NA 67.03 0.47
---------------------------------------------------------------------------------------------------------------------------
45 Downey Financial Corp. (43) DSL 9,407,540 57.9 12.66 20.97 58.41 0.42
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46 Sovereign Bancorp Inc. (41) SVRN 26,607,112 57.4 14.47 13.96 50.97 0.31
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47 BostonFed Bancorp Inc. (48) BFD 1,253,653 57.2 10.00 19.58 62.07 0.11
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48 MASSBANK Corp. (37) MASB 924,716 56.4 8.19 0.95 46.13 0.09
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49 Westcorp (96) WES 4,498,774 56.3 14.38 6.08 61.90 0.30
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50 Bank United Corp. (50) BNKU 16,244,679 56.1 15.81 NA 49.36 0.67
<CAPTION>
04/17/00 Price/
---------------
NCOs/ Core LTM Tang
Avg Loans ROAA Core EPS Book
Company Name (3-Year Rank) (%) (%) (x) (%)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Queens County Bancorp Inc. (1) 0.00 1.71 11.5 259.3
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2 Andover Bancorp Inc. (4) -0.05 1.33 9.4 135.4
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3 NASB Financial Inc. (3) 0.01 1.68 7.2 115.2
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4 Washington Federal Inc. (2) 0.06 1.94 8.1 126.9
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5 First Federal Capital Corp. (6) 0.03 1.19 8.9 166.0
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6 People's Bancshares Inc. (16) -0.02 0.97 6.6 161.7
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7 First Bell Bancorp Inc. (5) 0.00 0.99 9.7 149.8
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8 Washington Mutual Inc. (15) 0.17 1.06 7.7 178.1
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9 Astoria Financial Corp. (42) 0.02 1.00 6.2 145.7
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10 MAF Bancorp Inc. (9) 0.02 1.17 8.2 135.8
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11 Hudson City Bancorp Inc. (MHC) (7) 0.00 1.32 NA NA
-----------------------------------------------------------------------------------
12 Brookline Bancorp Inc. (MHC) (11) -0.05 2.08 12.9 87.0
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13 Flushing Financial Corp. (19) 0.00 1.08 9.2 107.1
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14 American Bank of Connecticut (12) 0.11 1.28 10.4 169.4
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15 Parkvale Financial Corp. (10) 0.02 1.01 7.7 111.9
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16 Roslyn Bancorp Inc. (13) 0.00 1.08 15.5 201.5
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17 FirstFed Financial Corp. (29) 0.09 0.94 6.4 91.5
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18 Golden West Financial Corp. (20) -0.01 1.13 11.6 161.6
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19 ITLA Capital Corp. (8) 0.20 1.57 5.8 74.5
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20 Charter One Financial Inc. (17) 0.17 1.22 11.6 188.8
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21 Anchor BanCorp Wisconsin Inc. (24) 0.13 1.14 NA 170.1
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22 Ottawa Financial Corp. (27) 0.03 0.99 12.4 173.1
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23 Peoples Heritage Financial Group Inc. (26) 0.24 1.22 8.6 185.3
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24 MECH Financial Inc. ^1 (38) 0.18 1.38 10.4 161.4
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25 GreenPoint Financial Corp. (25) 0.15 1.54 7.6 161.0
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26 First Sentinel Bancorp Inc. (30) 0.02 1.23 13.4 125.4
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27 Harbor Florida Bancshares Inc. (14) 0.07 1.49 13.5 128.8
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27 Webster Financial Corp. (44) 0.09 1.01 9.5 187.9
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29 Flagstar Bancorp Inc. (21) 0.37 1.05 4.7 90.3
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30 Capitol Federal Financial (MHC) (23) 0.00 1.03 NA 78.2
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31 First Northern Capital Corp. ^1 (31) 0.01 0.96 14.9 137.8
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32 Dime Community Bancshares Inc. (52) 0.02 0.98 8.8 130.8
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33 Quaker City Bancorp Inc. (57) 0.15 0.98 7.1 86.5
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34 Staten Island Bancorp Inc. (18) 0.03 1.30 11.8 116.6
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35 Medford Bancorp Inc. (22) 0.09 0.98 10.5 134.9
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36 Dime Bancorp Inc. (51) 0.10 1.07 8.4 199.4
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37 Richmond County Financial Corp. (28) 0.03 1.19 14.8 154.4
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38 St. Francis Capital Corp. (47) 0.04 0.76 8.5 122.3
-----------------------------------------------------------------------------------
39 PennFed Financial Services Inc. (33) 0.03 0.74 8.3 92.7
-----------------------------------------------------------------------------------
40 WSFS Financial Corp. (35) 0.21 1.19 6.6 138.1
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41 Hawthorne Financial Corp. (32) 0.34 0.86 4.4 62.5
-----------------------------------------------------------------------------------
42 OceanFirst Financial Corp. (53) 0.02 1.05 11.1 111.7
-----------------------------------------------------------------------------------
43 PBOC Holdings Inc. (77) 0.11 0.83 6.8 110.7
-----------------------------------------------------------------------------------
44 Provident Financial Holdings Inc. (84) 0.00 1.24 5.0 62.9
-----------------------------------------------------------------------------------
45 Downey Financial Corp. (43) 0.06 0.85 9.4 112.6
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46 Sovereign Bancorp Inc. (41) 0.28 0.82 5.8 105.2
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47 BostonFed Bancorp Inc. (48) -0.04 0.72 7.1 87.8
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48 MASSBANK Corp. (37) 0.01 0.92 11.0 90.9
-----------------------------------------------------------------------------------
49 Westcorp (96) 1.53 1.24 7.4 103.5
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50 Bank United Corp. (50) 0.05 0.77 9.2 148.1
</TABLE>
1 The company has announced an agreement to be acquired.
Source: SNL Securities LC
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-3- MAY 2000
<PAGE>
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ThriftINVESTOR
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Table 1
SNL's Top 100 Publicly-Traded Thrifts (continued)
<TABLE>
<CAPTION>
Core Core EPS Efficiency NPAs/ NCOs/
Total Assets Performance ROAE Growth Ratio Assets Avg Loans
Company Name (3-Year Rank) Ticker ($000) Score (%) (%) (%) (%) (%)
------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
51 Seacoast Financial Services Corp. (45) SCFS 2,122,785 55.1 8.56 NA 52.98 0.30 0.07
------------------------------------------------------------------------------------------------------------------------------------
51 First Financial Holdings Inc. (46) FFCH 2,070,752 55.0 15.36 0.29 57.23 0.62 0.06
------------------------------------------------------------------------------------------------------------------------------------
53 First Essex Bancorp Inc. (54) FESX 1,377,318 54.9 13.12 4.70 51.24 0.28 0.31
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54 InterWest Bancorp Inc. (36) IWBK 2,579,539 54.8 14.92 2.70 60.90 0.59 0.07
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55 Matrix Bancorp Inc. (40) MTXC 1,284,064 52.8 19.36 22.05 72.18 1.83 0.48
------------------------------------------------------------------------------------------------------------------------------------
56 First Washington Bancorp Inc. (39) FWWB 1,631,900 52.6 8.87 NA 49.53 0.50 0.12
------------------------------------------------------------------------------------------------------------------------------------
57 Independence Community Bank Corp. (64) ICBC 5,536,978 52.3 4.87 NA 49.57 0.13 0.01
------------------------------------------------------------------------------------------------------------------------------------
57 Niagara Bancorp Inc. (MHC) (60) NBCP 1,711,712 51.3 7.40 NA 59.12 0.18 0.07
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59 Golden State Bancorp Inc. (63) GSB 57,019,060 51.1 20.11 NA 54.05 0.39 0.11
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60 Klamath First Bancorp Inc. (34) KFBI 1,041,641 50.9 7.71 12.82 51.62 0.46 0.06
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61 Alliance Bancorp (49) ABCL 1,962,308 50.7 10.53 11.23 67.61 0.24 0.04
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62 People's Bank (MHC) (72) PBCT 10,738,100 48.6 12.50 11.87 64.85 0.44 0.88
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63 Commercial Federal Corp. (56) CFB 12,775,462 47.7 11.66 1.52 51.20 0.80 0.14
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63 First FS&L of East Hartford (76) FFES 1,005,106 46.7 9.36 16.30 60.48 0.10 0.22
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65 First Indiana Corp. (59) FISB 1,979,774 45.7 11.27 2.96 57.29 0.98 0.41
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66 GA Financial Inc. (55) GAF 882,980 45.7 8.30 NA 57.97 0.21 0.08
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67 Superior Financial Corp. (73) SUFI 1,591,945 45.4 10.82 NA 66.24 0.15 NA
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68 American Financial Holdings Inc. (62) AMFH 1,886,153 44.0 4.82 NA 54.04 0.16 0.09
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68 Harris Financial Inc. (MHC) (67) HARS 2,691,400 44.0 9.23 17.07 61.93 0.43 0.08
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70 United Community Financial Corp. (69) UCFC 1,327,573 43.7 3.44 NA 69.51 0.30 0.01
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71 Jefferson Savings Bancorp Inc. (71) JSBA 1,582,934 42.3 8.42 6.20 56.42 0.63 0.02
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71 Camco Financial Corp. (58) CAFI 813,482 41.6 9.66 -1.58 64.35 0.36 0.03
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73 ESB Financial Corp. (66) ESBF 1,032,445 40.7 9.32 6.12 62.12 0.43 0.01
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74 CFS Bancorp Inc. (90) CITZ 1,649,535 39.9 5.69 NA 57.85 0.79 0.01
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75 Sterling Financial Corp. (68) STSA 2,546,925 39.7 10.36 22.58 66.83 0.65 0.18
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76 FMS Financial Corp. (61) FMCO 772,501 38.1 11.05 2.58 67.16 0.53 0.05
------------------------------------------------------------------------------------------------------------------------------------
77 Community Savings Bankshares Inc. (78) CMSV 892,974 37.6 5.15 NA 69.28 0.17 0.02
------------------------------------------------------------------------------------------------------------------------------------
78 Northwest Bancorp Inc. (MHC) (65) NWSB 3,078,832 37.3 9.05 4.21 60.16 0.63 0.13
------------------------------------------------------------------------------------------------------------------------------------
79 Port Financial Corp. (79) PORT 762,741 37.2 6.74 NA 69.69 0.02 0.05
------------------------------------------------------------------------------------------------------------------------------------
80 FIRSTFED AMERICA BANCORP Inc. (80) FAB 1,393,237 36.6 6.83 NA 66.73 0.21 0.01
------------------------------------------------------------------------------------------------------------------------------------
81 Eagle Bancshares Inc. (83) EBSI 1,230,000 36.1 12.96 6.05 76.58 0.71 0.23
------------------------------------------------------------------------------------------------------------------------------------
82 Hudson River Bancorp Inc. ^1 (89) HRBT 881,139 35.8 3.86 NA 50.64 1.41 0.24
------------------------------------------------------------------------------------------------------------------------------------
83 First Defiance Financial Corp. (87) FDEF 987,994 35.6 9.17 5.17 72.38 0.36 0.84
------------------------------------------------------------------------------------------------------------------------------------
84 WesterFed Financial Corp. (75) WSTR 1,007,349 33.7 6.87 7.69 65.59 0.34 0.18
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85 Progress Financial Corp. (70) PFNC 765,534 33.1 9.68 19.68 76.34 0.75 0.48
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86 Haven Bancorp Inc. (91) HAVN 2,965,850 32.6 10.61 -4.97 77.60 0.27 0.06
------------------------------------------------------------------------------------------------------------------------------------
87 Fidelity Bankshares Inc. (MHC) (88) FFFL 1,718,933 30.3 6.95 3.23 78.09 0.29 0.01
------------------------------------------------------------------------------------------------------------------------------------
88 PFF Bancorp Inc. (94) PFFB 2,935,980 29.9 7.77 NA 59.80 0.94 0.20
------------------------------------------------------------------------------------------------------------------------------------
89 Commonwealth Bancorp Inc. (92) CMSB 1,922,396 28.5 8.81 2.04 69.41 0.54 0.23
------------------------------------------------------------------------------------------------------------------------------------
90 Provident Bancorp Inc. (MHC) (86) PBCP 814,518 28.2 6.34 NA 67.92 0.62 0.06
------------------------------------------------------------------------------------------------------------------------------------
91 Metropolitan Financial Corp. (74) METF 1,608,119 27.8 10.19 6.51 70.49 0.88 0.20
------------------------------------------------------------------------------------------------------------------------------------
91 Bank Plus Corp. (95) BPLS 2,683,452 27.2 -23.05 77.16 64.74 1.50 5.02
------------------------------------------------------------------------------------------------------------------------------------
93 Coastal Bancorp Inc. (81) CBSA 2,947,952 27.0 8.90 2.05 61.97 0.65 0.69
------------------------------------------------------------------------------------------------------------------------------------
94 BankAtlantic Bancorp Inc. (97) BANC 4,159,901 26.9 10.64 1.32 67.41 1.18 0.92
------------------------------------------------------------------------------------------------------------------------------------
95 York Financial Corp. ^1 (85) YFED 1,364,626 25.8 7.72 -7.55 64.91 0.78 0.19
------------------------------------------------------------------------------------------------------------------------------------
96 Connecticut Bancshares Inc. (82) SBMC 1,227,798 24.0 6.72 NA 72.62 0.96 0.12
------------------------------------------------------------------------------------------------------------------------------------
97 Net.B@nk Inc. (98) NTBK 1,257,885 24.0 1.64 NA 83.76 0.00 0.34
------------------------------------------------------------------------------------------------------------------------------------
98 Troy Financial Corp. (100) TRYF 915,096 23.7 3.77 NA 66.20 1.06 0.15
------------------------------------------------------------------------------------------------------------------------------------
99 Ocwen Financial Corp. (93) OCN 3,309,313 17.4 -10.08 -40.15 138.99 NA NA
------------------------------------------------------------------------------------------------------------------------------------
100 BankUnited Financial Corp. (99) BKUNA 4,078,471 16.1 -1.41 -27.78 89.28 0.68 0.07
Median (Top 100 Thrifts) 10.57 10.68 56.38 0.39 0.07
<CAPTION>
04/17/00 Price/
---------------
Core LTM Tang
ROAA Core EPS Book
Company Name (3-Year Rank) (%) (x) (%)
---------------------------------------------------------------------
<S> <C> <C> <C>
51 Seacoast Financial Services Corp. (45) 1.18 10.0 87.8
---------------------------------------------------------------------
51 First Financial Holdings Inc. (46) 0.99 9.5 141.1
---------------------------------------------------------------------
53 First Essex Bancorp Inc. (54) 0.96 8.8 156.4
---------------------------------------------------------------------
54 InterWest Bancorp Inc. (36) 1.05 9.2 145.4
---------------------------------------------------------------------
55 Matrix Bancorp Inc. (40) 1.00 5.5 95.0
---------------------------------------------------------------------
56 First Washington Bancorp Inc. (39) 1.07 9.7 111.8
---------------------------------------------------------------------
57 Independence Community Bank Corp. (64) 0.90 12.8 111.9
---------------------------------------------------------------------
57 Niagara Bancorp Inc. (MHC) (60) 1.11 14.3 120.9
---------------------------------------------------------------------
59 Golden State Bancorp Inc. (63) 0.55 6.5 266.4
---------------------------------------------------------------------
60 Klamath First Bancorp Inc. (34) 0.90 8.0 70.4
---------------------------------------------------------------------
61 Alliance Bancorp (49) 0.94 10.4 111.8
---------------------------------------------------------------------
62 People's Bank (MHC) (72) 0.98 12.8 194.4
---------------------------------------------------------------------
63 Commercial Federal Corp. (56) 0.91 8.9 125.2
---------------------------------------------------------------------
63 First FS&L of East Hartford (76) 0.66 12.3 123.9
---------------------------------------------------------------------
65 First Indiana Corp. (59) 1.01 11.9 126.7
---------------------------------------------------------------------
66 GA Financial Inc. (55) 0.89 8.2 81.7
---------------------------------------------------------------------
67 Superior Financial Corp. (73) 0.76 8.9 230.7
---------------------------------------------------------------------
68 American Financial Holdings Inc. (62) 0.89 NA NA
---------------------------------------------------------------------
68 Harris Financial Inc. (MHC) (67) 0.66 12.1 133.4
---------------------------------------------------------------------
70 United Community Financial Corp. (69) 1.11 14.7 83.0
---------------------------------------------------------------------
71 Jefferson Savings Bancorp Inc. (71) 0.70 9.8 95.2
---------------------------------------------------------------------
71 Camco Financial Corp. (58) 0.82 8.6 84.2
---------------------------------------------------------------------
73 ESB Financial Corp. (66) 0.54 8.7 108.2
---------------------------------------------------------------------
74 CFS Bancorp Inc. (90) 0.85 12.7 78.2
---------------------------------------------------------------------
75 Sterling Financial Corp. (68) 0.51 7.1 140.0
---------------------------------------------------------------------
76 FMS Financial Corp. (61) 0.68 10.7 113.3
---------------------------------------------------------------------
77 Community Savings Bankshares Inc. (78) 0.78 15.4 76.4
---------------------------------------------------------------------
78 Northwest Bancorp Inc. (MHC) (65) 0.73 13.4 170.9
---------------------------------------------------------------------
79 Port Financial Corp. (79) 0.72 NA NA
---------------------------------------------------------------------
80 FIRSTFED AMERICA BANCORP Inc. (80) 0.57 8.7 64.1
---------------------------------------------------------------------
81 Eagle Bancshares Inc. (83) 0.79 8.4 101.5
---------------------------------------------------------------------
82 Hudson River Bancorp Inc. ^1 (89) 0.88 16.1 70.5
---------------------------------------------------------------------
83 First Defiance Financial Corp. (87) 0.95 6.9 77.6
---------------------------------------------------------------------
84 WesterFed Financial Corp. (75) 0.69 8.3 82.3
---------------------------------------------------------------------
85 Progress Financial Corp. (70) 0.61 15.5 143.0
---------------------------------------------------------------------
86 Haven Bancorp Inc. (91) 0.44 10.7 127.4
---------------------------------------------------------------------
87 Fidelity Bankshares Inc. (MHC) (88) 0.34 17.2 119.1
---------------------------------------------------------------------
88 PFF Bancorp Inc. (94) 0.63 7.5 82.9
---------------------------------------------------------------------
89 Commonwealth Bancorp Inc. (92) 0.72 10.7 127.5
---------------------------------------------------------------------
90 Provident Bancorp Inc. (MHC) (86) 0.65 NA 131.8
---------------------------------------------------------------------
91 Metropolitan Financial Corp. (74) 0.30 7.1 78.4
---------------------------------------------------------------------
91 Bank Plus Corp. (95) -0.83 NM 34.8
---------------------------------------------------------------------
93 Coastal Bancorp Inc. (81) 0.38 10.9 122.2
---------------------------------------------------------------------
94 BankAtlantic Bancorp Inc. (97) 0.65 11.8 143.4
---------------------------------------------------------------------
95 York Financial Corp. ^1 (85) 0.68 12.8 113.4
---------------------------------------------------------------------
96 Connecticut Bancshares Inc. (82) 0.68 NA NA
---------------------------------------------------------------------
97 Net.B@nk Inc. (98) 0.36 95.0 117.4
---------------------------------------------------------------------
98 Troy Financial Corp. (100) 0.63 NA 65.0
---------------------------------------------------------------------
99 Ocwen Financial Corp. (93) -1.44 NM 93.2
---------------------------------------------------------------------
100 BankUnited Financial Corp. (99) -0.07 NM 78.0
Median (Top 100 Thrifts) 0.96 9.4 120.0
</TABLE>
1 The company has announced an agreement to be acquired.
--------------------------------------------------------------------------------
MAY 2000 -4-
<PAGE>
--------------
ThriftINVESTOR
--------------
--------------------------------------------------------------------------------
Table 3
Efficiency Ratio
Top 10 performers for 1999
<TABLE>
<CAPTION>
04/17/00 Price/
Efficiency ------------------------
Total Assets Ratio LTM Core Tang
Company Name (Overall Rank) Ticker ($000) (%) Earnings (x) Book (%)
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 Washington Federal Inc. (4) WFSL 6,163,503 18.04 8.1 126.9
------------------------------------------------------------------------------------------------------------
2 Brookline Bancorp Inc. (MHC) (12) BRKL 907,334 25.61 12.9 87.0
------------------------------------------------------------------------------------------------------------
3 Hudson City Bancorp Inc. (MHC) (11) HCBK 8,518,865 27.67 NA NA
------------------------------------------------------------------------------------------------------------
4 Queens County Bancorp Inc. (1) QCSB 1,906,835 29.00 11.5 259.3
------------------------------------------------------------------------------------------------------------
5 Roslyn Bancorp Inc. (16) RSLN 7,725,183 32.47 15.5 201.5
------------------------------------------------------------------------------------------------------------
6 Astoria Financial Corp. (9) ASFC 22,696,536 32.75 6.2 145.7
------------------------------------------------------------------------------------------------------------
7 Golden West Financial Corp. (18) GDW 42,142,205 34.58 11.6 161.6
------------------------------------------------------------------------------------------------------------
8 Capitol Federal Financial (MHC) (30) CFFN 6,539,315 36.25 NA 78.2
------------------------------------------------------------------------------------------------------------
9 First Sentinel Bancorp Inc. (26) FSLA 1,904,696 38.09 13.4 125.4
------------------------------------------------------------------------------------------------------------
10 ITLA Capital Corp. (19) ITLA 1,115,823 38.57 5.8 74.5
Median (Top 100 Thrifts) 56.38 9.4 120.0
</TABLE>
Source: SNL Securities LC
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Table 4
Core Return on Average Assets
Top 10 performers for 1999
<TABLE>
<CAPTION>
04/17/00 Price/
Core -------------------------
Total Assets ROAE LTM Core Tang
Company Name (Overall Rank) Ticker ($000) (%) Earnings (x) Book (%)
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
1 Brookline Bancorp Inc. (MHC) (12) BRKL 907,334 2.08 12.9 87.0
------------------------------------------------------------------------------------------------------------
2 Washington Federal Inc. (4) WFSL 6,163,503 1.94 8.1 126.9
------------------------------------------------------------------------------------------------------------
3 Queens County Bancorp Inc. (1) QCSB 1,906,835 1.71 11.5 259.3
------------------------------------------------------------------------------------------------------------
4 NASB Financial Inc. (3) NASB 825,737 1.68 7.2 115.2
------------------------------------------------------------------------------------------------------------
5 ITLA Capital Corp. (19) ITLA 1,115,823 1.57 5.8 74.5
------------------------------------------------------------------------------------------------------------
6 GreenPoint Financial Corp. (25) GPT 15,401,077 1.54 7.6 161.0
------------------------------------------------------------------------------------------------------------
7 Harbor Florida Bancshares Inc. (27) HARB 1,462,550 1.49 13.5 128.8
------------------------------------------------------------------------------------------------------------
8 MECH Financial Inc. (24) MECH 1,119,693 1.38 10.4 161.4
------------------------------------------------------------------------------------------------------------
9 Andover Bancorp Inc. (2) ANDB 1,491,054 1.33 9.4 135.4
------------------------------------------------------------------------------------------------------------
10 Hudson City Bancorp Inc. (MHC) (11) HCBK 8,518,865 1.32 NA NA
Median (Top 100 Thrifts) 0.96 9.4 120.0
</TABLE>
Source: SNL Securities LC
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Table 5
Core Return on Average Equity
Top 10 performers for 1999
<TABLE>
<CAPTION>
04/17/00 Price/
Core -------------------------
Total Assets ROAA LTM Core Tang
Company Name (Overall Rank) Ticker ($000) (%) Earnings (x) Book (%)
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
1 People's Bancshares Inc. (6) PBKB 1,071,176 25.90 6.62 161.7
----------------------------------------------------------------------------------------------------------------------
2 Queens County Bancorp Inc. (1) QCSB 1,906,835 23.24 11.54 259.3
----------------------------------------------------------------------------------------------------------------------
3 WSFS Financial Corp. (40) WSFS 1,753,820 22.59 6.61 138.1
----------------------------------------------------------------------------------------------------------------------
4 Flagstar Bancorp Inc. (29) FLGS 4,310,039 21.37 4.68 90.3
----------------------------------------------------------------------------------------------------------------------
5 Washington Mutual Inc. (8) WM 186,513,630 20.13 7.72 178.1
----------------------------------------------------------------------------------------------------------------------
6 Golden State Bancorp Inc. (59) GSB 57,019,060 20.11 6.45 266.4
----------------------------------------------------------------------------------------------------------------------
7 Matrix Bancorp Inc. (55) MTXC 1,284,064 19.36 5.48 95.0
----------------------------------------------------------------------------------------------------------------------
8 Peoples Heritage Financial Group Inc. (23) PHBK 13,919,126 18.53 8.63 185.3
----------------------------------------------------------------------------------------------------------------------
9 First Federal Capital Corp. (5) FTFC 2,084,554 17.63 8.85 166.0
----------------------------------------------------------------------------------------------------------------------
10 Anchor BanCorp Wisconsin Inc. (21) ABCW 2,663,581 17.14 NA 170.1
Median (Top 100 Thrifts) 10.57 9.39 120.0
</TABLE>
Source: SNL Securities LC
--------------------------------------------------------------------------------
-5- MAY 2000
<PAGE>
--------------
ThriftINVESTOR
--------------
--------------------------------------------------------------------------------
Table 6
EPS Growth
Top 10 performers for 1999
<TABLE>
<CAPTION>
04/17/00 Price/
Core EPS ---------------------------
Total Assets Growth LTM Core Tang
Company Name (Overall Rank) Ticker ($000) (%) Earnings (x) Book (%)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
1 Bank Plus Corp. (92) BPLS 2,683,452 77.16 NM 34.8
---------------------------------------------------------------------------------------------------------
2 Quaker City Bancorp Inc. (33) QCBC 1,013,437 40.03 7.06 86.5
---------------------------------------------------------------------------------------------------------
2 Flushing Financial Corp. (13) FFIC 1,249,529 36.91 9.19 107.1
---------------------------------------------------------------------------------------------------------
4 People's Bancshares Inc. (6) PBKB 1,071,176 32.57 6.62 161.7
---------------------------------------------------------------------------------------------------------
5 Washington Mutual Inc. (8) WM 186,513,630 31.65 7.72 178.1
---------------------------------------------------------------------------------------------------------
6 FirstFed Financial Corp. (17) FED 3,856,505 27.06 6.39 91.5
---------------------------------------------------------------------------------------------------------
7 Hawthorne Financial Corp. (41) HTHR 1,581,153 26.92 4.37 62.5
---------------------------------------------------------------------------------------------------------
8 Queens County Bancorp Inc. (1) QCSB 1,906,835 26.12 11.54 259.3
---------------------------------------------------------------------------------------------------------
9 Sterling Financial Corp. (75) STSA 2,546,925 22.58 7.07 140.0
---------------------------------------------------------------------------------------------------------
10 Matrix Bancorp Inc. (55) MTXC 1,284,064 22.05 5.48 95.0
Median (Top 100 Thrifts) 10.68 9.39 120.0
</TABLE>
Source: SNL Securities LC
--------------------------------------------------------------------------------
continued from page 2
32.75%]. The transaction was also accretive to our earnings and exceeded our
initial target of 4%. We estimated that we would earn $3.89 in 1999. We actually
earned $4.16 on an operating basis. So those two things tend to drive the
efficiency ratio to superior levels, and it also drove the growth in EPS as well
as the increase in ROE."
Astoria's board would be interested in doing another deal, he added,
although low multiples in the industry, as compared to late 1998, have chilled
the M&A appetite in the sector.
With $22.7 billion in assets, Astoria competes with top-ranked Queens
County for consumer deposits in several New York markets, but not for the same
assets. Only 6% of Astoria's portfolio is devoted to multifamily loans, a niche
market dominated by Queens County.
It's Good to be the Queen
From the summit, Queens County looks like a model of efficiency and
profitability. The thrift in April reported diluted earnings of 42 cents per
share for the first-quarter of 2000, representing a 10.5% increase from diluted
core earnings of 38 cents per share for the first quarter of 1999. The company
also reported first quarter earnings of $7.6 million, representing a 5.8%
increase from core earnings of $7.2 million in the first quarter of 1999. The
thrift's first-quarter earnings provided a 1.58% return on average assets and a
23.49% return on average stockholder equity; by comparison, the company's
first-quarter 1999 core earnings provided an ROA and ROE of 1.66% and 20.83%,
respectively.
The results reflect the company's efforts during the fourth quarter of
1999 to restructure the balance sheet, according to Chairman, President and
Chief Executive Officer Joseph R. Ficalora. Queens County sold $212 million in
multifamily mortgage loans during the quarter to the Federal Home Loan Bank of
New York, which helped increase the spread and margin on a trailing-quarter
basis, in spite of rising market interest rates.
"By restructuring our balance sheet, we have accomplished our objective of
setting the stage for future earnings growth," Ficalora said. "In addition, we
grew our mortgage loan portfolio to $1.7 billion, with the origination of $142.4
million in mortgage loans. While loan demand has softened somewhat in the face
of the Fed's recent measures, we currently have a pipeline of $129.7 million."
The thrift's enduring profitability stems from a mastery of multifamily
lending, Ficalora said, coupled with superb asset quality.
"Almost all of our loans are on properties that are rent-stabilized or
rent-controlled," he said. "We only lend on the cash flow of the property and we
do so very conservatively. That means that we have a very good likelihood that
even in adverse circumstances the property cash flow will cover the debt."
The multifamily niche has a built-in security factor that virtually
assures loan repayment, he added. In its 1999 annual report, Queens County
reported precisely zero problem loans on the books and no charge-offs.
Incredibly, the thrift has not posted a net charge-off since 1987 in its
multifamily line. And Queens County has not seen any net charge-offs in 22
consecutive quarters for the entire book of business, boasted Ficalora.
Other thrifts were not as fortunate. Troy Financial Corp., Ocwen Financial
Corp. and BankUnited Financial Corp. brought up the rear in the rankings, at 98,
99 and 100, respectively.
MAY 2000 -6-
<PAGE>
--------------
ThriftINVESTOR
--------------
Troy Financial converted from mutual to stock form in March 1999 and in
April 2000 announced that it would apply to the New York State Banking
Department to establish a commercial bank subsidiary in an effort to attract
municipal deposits.
Ocwen and BankUnited both compete in the growing south Florida market.
Specializing in the acquisition and servicing of subprime and nonperforming
mortgage loans, Ocwen toiled last year under the weight of problem loans. The
thrift posted net interest income of $91 million for 1999, a 13% decline. Core
EPS growth was -40.15%. BankUnited, which plans to open up to eight new branches
in 2000, posted a Core EPS growth rate of -27.78%.
The numbers argue persuasively that being in a niche market is no
guarantee of success and that rapid expansion does not necessarily garner
greater market share. For some thrifts, that path leads only to pain and sorrow.
Queens County, however, has established a leadership position in a niche
market, so doing a deal to increase its access to funding may be the best way
the thrift can boost assets and sustain its EPS growth rate.
The CEO said he is willing to consider an acquisition, but acknowledged
that selling is far less likely.
"I would never close the door to a combination ... mainly because I feel
there could be strategic attributes that would add real value and better serve
our shareholders than we might by ourselves," Ficalora said. He conceded,
however, that the thrift's high price-to-book ratio would tend to discourage
potential buyers. That's not by design, he
--------------------------------------------------------------------------------
[PHOTO]
Joseph R. Ficalora Queens County Bancorp Inc.
"I would never close the door to a combination ... mainly because I feel there
could be strategic attributes that would add real value and better serve our
shareholders than we might by ourselves."
--------------------------------------------------------------------------------
stressed, saying it's merely a reality of the market.
"We're a quality company and we're expensive," he said. "You get what you
pay for."
"They have tremendous asset-generation capability and they need the
funding capabilities to fund their asset growth," said McDonough, of Friedman
Billings Ramsey. "One of the ways that probably makes sense is if they could
acquire a company, maybe an overcapitalized company. From an investor's
standpoint -- I think this is very important to note -- management and insiders
own a tremendous amount of the stock, and they're not going to do anything to
damage shareholder value. Management and insiders, between the ESOP and straight
ownership, own close to 40% of the stock. And so I don't think you're going to
see them go out and overpay for an acquisition."
--------------------------------------------------------------------------------
Reprinted from the May 2000 issue of Thrift Investor.
(C) 2000 SNLSecurities LC
-7- MAY 2000
