<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
SCHEDULE 13E-3
(Rule 13e-100)
TRANSACTION STATEMENT UNDER SECTION 13(e) OF THE SECURITIES
EXCHANGE ACT OF 1934 AND RULE 13e-3 THEREUNDER
RULE 13e-3 TRANSACTION STATEMENT UNDER SECTION 13(e) OF THE
SECURITIES ACT OF 1934
(Amendment No. 1)
FIRST PALMETTO FINANCIAL CORPORATION
------------------------------------
(Name of Issuer)
FIRST PALMETTO FINANCIAL CORPORATION
------------------------------------
(Name of Person(s) Filing Statement)
Common Stock, $.01 par value
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(Title of Class of Securities)
(CUSIP Number of Class of Securities 335926101)
Samuel R. Small, President and Chief Executive Officer
407 DeKalb Street Camden, South Carolina 29020, (803) 432-1416
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(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications on Behalf of Person(s) Filing Statement)
This statement is filed in connection with (check appropriate box):
a.[X] The filing of solicitation materials or an information statement subject
to Regulation 14C or Rule 13e-3(c) under the Securities Exchange Act of 1934.
b.[_] The filing of a registration statement under the Securities Act of 1933.
c.[_] A tender offer.
d.[_] None of the above.
Check the following box if the soliciting materials or information statement
referred to in checking box (a) are preliminary copies: [X]
Check the following box if the filing is a final amendment reporting the results
of the transaction: [_]
Calculation of Filing Fee
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Transaction Valuation: Amount of filing fee:
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*$2,625,000 $525.00
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* Based upon one fiftieth of one percent multiplied by transaction value of (i)
$75.00 per Preferred Share multiplied by (ii) 35,000 fractional shares.
[X] Check box if any part of the fee is offset by Rule 0-11(a)(2) and identify
the filing with which the offsetting fee as previously paid. Identify the
previous filing by either a registration statement number, or the Form or
Schedule and the date of its filing.
Amount Previously Paid: $525.00 Filing Party: FIRST PALMETTO FINANCIAL
Form or Registration No.: 13E-3 Date Filed: 2/01/00
<PAGE>
Item 1. Summary Term Sheet
The material terms of the reverse stock split proposal include the
following:
. First Palmetto Financial Corporation is filing this Schedule 13E-3. See
"Proposal II -- Reverse Stock Split -- Summary" on page 9 of our proxy
statement.
. Our board of directors has authorized a 1-for-125 reverse stock split
and recommends that you vote to adopt the proposal. See "Proposal II --
Reverse Stock Split -- Reasons for Transaction" and "--Recommendation of
Board of Directors; Fairness of Reverse Stock Split Proposal" on pages
9-11 of our proxy statement.
. A majority of our stockholders must vote in favor of the reverse stock
split. See "Proposal II -- Reverse Stock Split -- Summary" on page 9 of
our proxy statement.
. Each member of our board of directors and all of our executive officers
have indicated that they intend to vote in favor of the reverse stock
split. See "Proposal II -- Reverse Stock Split -- Summary" on page 9 of
our proxy statement.
. Our board of directors and executive officers currently own
approximately 37% of our outstanding common stock and will own
approximately 39% after the reverse stock split. See "Proposal II --
Reverse Stock Split -- Conduct of First Palmetto's Business after
Reverse Stock Split' on pages 13-14 of our proxy statement.
. You will receive one new share of common stock for each 125 common
shares you currently own. See "Proposal II -- Reverse Stock Split --
Structure of Reverse Stock Split" on page 14 of our proxy statement.
. If you own less than 125 shares of common stock, you will receive shares
of preferred stock on a one-for-one basis. See "Proposal II -- Reverse
Stock Split -- Structure of Reverse Stock Split" on page 14 of our proxy
statement.
. The reverse stock split is not expected to effect our current business
plan or operations. See "Proposal II -- Reverse Stock Split -- Conduct
of First Palmetto's Business after Reverse Stock Split" on pages 13-14
of our proxy statement.
. If the reverse stock split is approved, we will no longer be required to
file periodic reports with the SEC and our common stock will no longer
be publicly traded. See "Proposal II -- Reverse Stock Split --
Consequences Under Federal Securities Laws" on pages 18-19 of our proxy
statement.
. Our board of directors did not obtain an investment bank or other
financial adviser to render a report or fairness opinion in connection
with the reverse stock split. . See "Proposal II -- Reverse Stock
Split --Reasons for Transaction" and "--Recommendation of Board of
Directors; Fairness of Reverse Stock Split Proposal" on pages 9-11 of
our proxy statement.
. RP Financial's independent analysis and evaluation provides that the
estimated fair market value of the preferred stock to be issued to
stockholders holding fewer than 125 shares of common stock is
substantially equivalent to $75.00 per share. RP Financial also
determined that the estimated fair market value of the common stock is
$75.00 per share. See "Proposal II -- Reverse Stock Split -- Evaluation
of RP Financial" on pages 11-13 of our proxy statement.
. Preferred stockholders will not have voting rights but will be entitled
to receive dividends. See `Proposal II -- Reverse Stock Split --
Conversion to Preferred Stock" on pages 17-18 of our proxy statement and
our form of proxy.
. Your executed but unmarked proxies will be voted for the reverse stock
split. See page 1 of our proxy statement and our form of proxy.
. We expect that the reverse stock split should be treated as a tax-free
"recapitalization" for federal income tax purposes. New common
stockholders and preferred stockholders should not recognize any gain or
loss and should have the same adjusted tax basis and holding period
<PAGE>
as you had in the common stock immediately prior to the reverse
stock split. See "Proposal II -- Reverse Stock Split -- Material
Federal Income Tax Consequences" on pages 20-21 of our proxy
statement.
. Appraisal rights for the reverse stock split are not available
under Delaware law. See "Proposal II -- Reverse Stock Split --
Appraisal Rights" on page 21 of our proxy statement.
Item 2. Subject Company Information.
(a) Name and Address. First Palmetto Financial Corporation is the
subject company. Its principal executive office is located at 407 DeKalb Street,
Camden, South Carolina, 29020 and its telephone number is (803) 432-1416.
(b) Securities. As of November 5, 1999 there were 712,010 outstanding
shares of Common Stock, $.01 par value per share.
(c) Trading Market and Price. At the present time, there is no
established public trading market in which shares of First Palmetto's common
stock are regularly traded, nor are there any uniformly quoted prices for such
shares. The following is the known range of high and low sales prices for the
common stock for each quarter during the past two years.
<TABLE>
<CAPTION>
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Quarter ended: High ($) Low ($)
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<S> <C> <C>
September, 1997 40.00 37.00
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December, 1997 40.00 40.00
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March, 1998 48.00 40.00
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June, 1998 51.00 50.50
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September, 1998 51.00 51.00
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December, 1998 65.00 51.00
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March, 1999 68.25 65.00
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June, 1999 75.00 68.25
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September, 1999 75.00 75.00
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December, 1999 75.00 75.00
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</TABLE>
(d) Dividends. The Company paid dividends of $2.60 and $2.20 per share
for the last two fiscal years ended September 30, 1999 and 1998, respectively.
The Company's ability to pay cash dividends is subject to, among other things,
limitations imposed by the Office of Thrift Supervision ("OTS").
(e) Prior Public Offerings. Not applicable.
(f) Prior Stock Purchases. Not applicable.
Item 3. Identity and Background of Filing Person.
(a) Name and Address. First Palmetto Financial Corporation, the subject
company is the filing person of this Statement. Its principal executive office
is located at 407 DeKalb Street, Camden, South Carolina, 29020 and its telephone
number is (803) 432-1416. The business address and business telephone numbers
for each executive officer and director is 407 DeKalb Street, Camden, South
Carolina, 29020 and (803) 432-1416, respectively.
(b) Business and Background of Entities. Not applicable.
<PAGE>
(c) Business and Background of Natural Persons. The information required
by (1) and (2) of this item is set forth under the caption "Proposal I -
Election of Directors" of the proxy statement and is incorporated herein by
reference pursuant to General Instruction F to Schedule 13E-3.
(3) None of the Company's executive officers or directors were
convicted in a criminal proceeding during the past five years.
(4) None of the Company's executive officers or directors were a
party to any judicial or administrative proceeding during the past five years.
(5) All of the Company's executive officers and directors all
citizens of the United States.
(d) Tender Offer. Not applicable.
Item 4. Terms of the Transaction.
(a) Material Terms. The information set forth under the captions "Notice
of 2000 Annual Meeting of Stockholders"; "Summary; Reasons for the Transaction";
"Recommendation of the Board of Directors; Fairness of the Reverse Stock Split
Proposal"; "Evaluation of RP Financial"; "Conduct of First Palmetto's Business
after the Reverse Stock Split"; "Structure of the Reverse Stock Split"; "Purpose
of the Reverse Stock Split"; "Effect of the Reverse Stock Split Proposal on
First Palmetto Stockholders"; "Financial Effect of the Reverse Stock Split";
"Conversion to Preferred Stock"; "Termination of 1934 Act Registration of Common
Stock"; "Consequences under Federal Securities Laws"; "Effect on Market for
Shares"; "Potential Detriments of the Reverse Stock Split Proposal to
Stockholders; Accretion in Ownership and Control of Certain Stockholders";
"Stock Certificates"; "Material Federal Income Tax Consequences" of the Proxy
Statement are incorporated herein by reference pursuant to General Instruction F
to Schedule 13E-3.
(c) Different Terms. Not applicable.
(d) Appraisal Rights. Security holders are not entitled to any appraisal
rights under state law in connection with this transaction. The information set
forth under the caption "Appraisal Rights" is incorporated herein by reference
pursuant to General Instruction F to Schedule 13E-3.
(e) Provisions for Unaffiliated Security Holders. Not applicable.
(f) Eligibility for Listing or Trading. Not applicable.
Item 5. Past Contacts, Transactions or Negotiations.
(a) Transactions. Not applicable
(b) Significant Corporate Events. Not applicable
(c) Negotiations or Contacts. Not applicable.
(e) Agreements Involving the Subject Company's Securities. Not applicable.
Item 6. Purposes of the Transaction and Plans or Proposals.
<PAGE>
(b) Use of Securities Acquired. No securities will be acquired in the
transaction.
(c) Plans. The information set forth under the caption "Conduct of First
Palmetto's Business after the Reverse Stock Split"; "Purpose of the Reverse
Stock Split"; "Effect of the Reverse Stock Split Proposal on First Palmetto
Stockholders"; "Conversion to Preferred Stock" of the Proxy Statement are
incorporated herein by reference pursuant to General Instruction F to Schedule
13E-3.
Item 7. Purposes, Alternatives, Reasons and Effects.
(a) Purposes. The information set forth under the caption "Purpose of the
Reverse Stock Split" of the Proxy Statement is incorporated herein by reference
pursuant to General Instruction F to Schedule 13E-3.
(b) Alternatives. The information set forth under the caption
"Recommendation of the Board of Directors; Fairness of the Reverse Stock Split
Proposal" of the Proxy Statement is incorporated herein by reference pursuant to
General Instruction F to Schedule 13E-3.
(c) Reasons. The information set forth under the captions "Reasons for the
Transaction"; Recommendation of the Board of Directors; Fairness of the Reverse
Stock Split Proposal" of the Proxy Statement are incorporated herein by
reference pursuant to General Instruction F to Schedule 13E-3.
(d) Effects. The information set forth under the captions "Effect of the
Reverse Stock Split on First Palmetto Stockholders"; "Potential Detriments of
the Reverse Stock Split Proposal to Stockholders"; "Accretion in Ownership and
Control of Certain Stockholders"; "Material Federal Income Tax Consequences" of
the Proxy Statement are incorporated herein by reference pursuant to General
Instruction F to Schedule 13E-3.
Item 8. Fairness of the Transaction.
(a) Fairness. The information set forth under the caption "Recommendation
of the Board of Directors; Fairness of the Reverse Stock Split Proposal" of the
Proxy Statement is incorporated herein by reference pursuant to General
Instruction F to Schedule 13E-3.
(b) Factors Considered in Determining Fairness. The information set forth
under the caption "Recommendation of the Board of Directors; Fairness of the
Reverse Stock Split Proposal" of the Proxy Statement is incorporated herein by
reference pursuant to General Instruction F to Schedule 13E-3.
(c) Approval of Security Holders. The information set forth under the
caption "Recommendation of the Board of Directors; Fairness of the Reverse Stock
Split Proposal" of the Proxy Statement is incorporated herein by reference
pursuant to General Instruction F to Schedule 13E-3.
(d) Unaffiliated Representative. The information set forth under the
caption "Recommendation of the Board of Directors; Fairness of the Reverse Stock
Split Proposal" of the Proxy Statement is incorporated herein by reference
pursuant to General Instruction F to Schedule 13E-3.
(e) Approval of Directors. The information set forth under the caption
"Recommendation of the Board of Directors; Fairness of the Reverse Stock Split
Proposal" of the Proxy Statement is incorporated herein by reference pursuant to
General Instruction F to Schedule 13E-3.
(f) Other Offers. Not applicable.
<PAGE>
Item 9. Reports, Opinions, Appraisals and Negotiations.
(a) Report, Opinion or Appraisal. The information set forth under the
caption "Evaluation of RP Financial" of the Proxy Statement is incorporated
herein by reference pursuant to General Instruction F to Schedule 13E-3.
(b) Preparer and Summary of the Report, Opinion or Appraisal. The
information set forth under the captions "Evaluation of RP Financial";
"Valuation of Common Stock"; and "Analysis and Evaluation of Preferred Stock" of
the Proxy Statement are incorporated herein by reference pursuant to General
Instruction F to Schedule 13E-3. First Palmetto's Board of Directors determined
the amount of consideration to be paid in the transaction.
(c) Availability of Documents. RP Financial's independent analysis and
evaluation is available for inspection and copying at the First Palmetto
Financial Corporation's principal executive offices during its regular business
hours by any interested Common Stockholder of First Palmetto Financial
Corporation or representative who has been so designated in writing.
Item 10. Source and Amounts of Funds or Other Consideration.
(a) Source of Funds. The information set forth under the caption
"Financial Effect of the Reverse Stock Split" of the Proxy Statement is
incorporated herein by reference pursuant to General Instruction F to Schedule
13E-3. The only consideration to be paid is Preferred Stock in lieu of issuing
fractional shares of Common Stock to current stockholders. No other funds will
be used as consideration in the transaction.
(b) Conditions. There are no material conditions to the financing
discussed in the response to paragraph (a) of this item. The Company does not
have any alternative financing arrangements or financing plans.
(c) Expenses. The information set forth under the captions "Financial
Effect of the Reverse Stock Split" and "Solicitation Information" of the Proxy
Statement are incorporated herein by reference pursuant to General Instruction F
to Schedule 13E-3.
(d) Borrowed Funds. Not applicable.
Item 11. Interest in Securities of the Subject Company.
(a) Securities Ownership. The information set forth under the caption
"Stock Ownership of Management" and "Principal Holders of Common Stock" of the
Proxy Statement are incorporated herein by reference pursuant to General
Instruction F to Schedule 13E-3.
(b) Securities Transactions. Not applicable.
Item 12. The Solicitation or Recommendation.
(d) Intent to Tender or Vote in a Going-Private Transaction. The
information set forth under the caption "Recommendation of the Board of
Directors; Fairness of the Reverse Stock Split Proposal" of the Proxy Statement
is incorporated herein by reference pursuant to General Instruction F to
Schedule 13E-3.
<PAGE>
(e) Recommendations of Others. The information set forth under the caption
"Recommendation of the Board of Directors; Fairness of the Reverse Stock Split
Proposal" of the Proxy Statement is incorporated herein by reference pursuant to
General Instruction F to Schedule 13E-3.
Item 13. Financial Statements.
(a) Financial Information. The financial statements contained in to the
Company's Annual Report on Form 10-K for the fiscal year ended September 30,
1999, as filed with the Securities and Exchange Commission on December 28, 1999
is incorporated herein by reference.
(b) Pro Forma Information. The information set forth under the caption
"Financial Effect of the Reverse Stock Split" of the Proxy Statement is
incorporated herein by reference pursuant to General Instruction F to Schedule
13E-3.
Item 14. Persons/Assets, Retained, Employed, Compensated or Used.
(a) Solicitations or Recommendations. The information set forth under the
caption "Solicitation Information" of the Proxy Statement is incorporated herein
by reference pursuant to General Instruction F to Schedule 13E-3.
(b) Employees and Corporate Assets. The information set forth under the
caption "Solicitation Information" of the Proxy Statement is incorporated herein
by reference pursuant to General Instruction F to Schedule 13E-3.
Item 15. Additional information.
(b) Other Material Information. Not applicable.
Item 16. Exhibits.
(a) Proxy Statement filed with the Securities and Exchange Commission on
_____, 2000.
(b) Not applicable.
(c) Report and evaluation of RP Financial included as Appendix B to the
Proxy Statement
(d) Not applicable.
(f) Not applicable.
(g) Not applicable.
<PAGE>
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
/s/ Samuel R. Small
------------------------------
(Signature)
President and CEO
------------------------------
(Name and Title)
3/28/00
------------------------------
(Date)
<PAGE>
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. 1)
Filed by the Registrant [_]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[X] Preliminary Proxy Statement [_] CONFIDENTIAL, FOR USE OF THE
COMMISSION ONLY (AS PERMITTED
BY RULE 14A-6(E)(2))
[_] Definitive Proxy Statement
[_] Definitive Additional Materials
[_] Soliciting Material Pursuant to Rule 14a-11 (c) or Rule 14a-12
FIRST PALMETTO FINANCIAL CORPORATION
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(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[_] No fee required.
[X] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
First Palmetto Common Stock, par value $.01
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(2) Aggregate number of securities to which transaction applies:
35,000
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
Based upon one fiftieth of one percent multiplied by transaction value
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of (i) $75.00 per preferred shares multiplied by (ii) 35,000 fractional
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shares.
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(4) Proposed maximum aggregate value of transaction:
$2,625,000.00
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(5) Total fee paid:
$525.00
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[_] Fee paid previously with preliminary materials.
[X] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
$525.00
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(2) Form, Schedule or Registration Statement No.:
Schedule 13E-3
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(3) Filing Party:
First Palmetto Financial Corporation
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(4) Date Filed:
February 1, 2000
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<PAGE>
________ __, 2000
Dear Stockholder:
It is our pleasure to invite you to attend the Annual Meeting of
Stockholders of First Palmetto Financial Corporation ("First Palmetto"), the
holding company for First Palmetto Savings Bank, F.S.B. (the "Bank"). The Annual
Meeting will be held at the Bank's main office, 407 DeKalb Street, Camden, South
Carolina, on ______, _________ __, 2000 at ____ _.m., local time.
Notice of the Annual Meeting, together with a Proxy Statement and Proxy
Card, are enclosed and describe in detail the formal business we will conduct.
As an integral part of the Annual Meeting, we will report on First Palmetto's
and the Bank's operations. Our directors and officers will, of course, be
available for your questions.
Detailed information concerning our business activities and operating
results through September 30, 1999 is contained in our Annual Report, which is
enclosed.
Your vote is important, regardless of the number of shares you own. ON
BEHALF OF THE BOARD OF DIRECTORS, WE URGE YOU TO SIGN, DATE AND RETURN THE
ENCLOSED PROXY CARD AS SOON AS POSSIBLE EVEN IF YOU CURRENTLY PLAN TO ATTEND THE
ANNUAL MEETING. This will not prevent you from voting in person but will assure
that your vote is counted if you are unable to attend the Annual Meeting.
Thank you for your cooperation and continuing support.
Sincerely,
Samuel R. Small
President and Chief Executive Officer
<PAGE>
FIRST PALMETTO FINANCIAL CORPORATION
407 DEKALB STREET
CAMDEN, SOUTH CAROLINA 29020
(803) 432-2265
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NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON __________ __, 2000
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NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders (the "Annual
Meeting") of First Palmetto Financial Corporation ("First Palmetto"), the
holding company for First Palmetto Savings Bank, F.S.B. (the "Bank"), will be
held at the Bank's main office, 407 DeKalb Street, Camden, South Carolina, on
Monday, ___________ ___, 2000, at ____ _.m., local time, for the following
purposes:
1. The election of two directors of First Palmetto
2. The approval of a proposal to amend First Palmetto's Restated
Certificate of Incorporation to effect a 1-for-125 reverse stock split
of the Common Stock and to issue shares of Preferred Stock in exchange
for shares of Common Stock held by any First Palmetto stockholder who,
following the reverse stock split, would otherwise hold less than one
share of Common Stock of record in any separate account.
3. Such other matters as may properly come before the Annual Meeting or
any adjournments thereof.
NOTE: The Board of Directors is not aware of any other business to come
before the Annual Meeting.
Pursuant to the Bylaws, the Board of Directors has fixed the close of business
on _________ __, 2000 as the record date for the determination of stockholders
entitled to notice of and to vote at the Annual Meeting. Only holders of common
stock of record at the close of business on that date will be entitled to notice
of and to vote at the Annual Meeting or any adjournments thereof.
In the event there are not sufficient votes to approve any one or more of the
foregoing proposals at the time of the Annual Meeting, the Annual Meeting may be
adjourned in order to permit further solicitation of proxies by First Palmetto.
You are requested to complete and sign the enclosed Proxy Card, which is
solicited by the Board of Directors, and to mail it promptly in the enclosed
envelope. Your proxy will not be used if you attend and vote at the Annual
Meeting in person.
BY ORDER OF THE BOARD OF DIRECTORS
DARLENE H. LOVE
SECRETARY
Camden, South Carolina
_________ __, 2000
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IMPORTANT: THE PROMPT RETURN OF PROXIES WILL SAVE FIRST PALMETTO THE EXPENSE OF
FURTHER REQUESTS FOR PROXIES IN ORDER TO ENSURE A QUORUM. AN ADDRESSED ENVELOPE
IS ENCLOSED FOR YOUR CONVENIENCE. NO POSTAGE IS REQUIRED IF MAILED IN THE UNITED
STATES.
- --------------------------------------------------------------------------------
<PAGE>
FIRST PALMETTO FINANCIAL CORPORATION
407 DEKALB STREET
CAMDEN, SOUTH CAROLINA 29020
(803) 432-2265
- --------------------------------------------------------------------------------
PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
___________ __, 2000
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This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Directors of First Palmetto Financial Corporation
("First Palmetto"), the holding company for First Palmetto Savings Bank, F.S.B.
(the "Bank"), to be used at the Annual Meeting of Stockholders of First Palmetto
(the "Annual Meeting") to be held at the Bank's main office, 407 DeKalb Street,
Camden, South Carolina, on __________,_________ __, 2000, at _____ _.m., local
time. It is anticipated that this Proxy Statement will be mailed to stockholders
on or about _________ __, 2000.
If the enclosed form of proxy is properly executed and returned to First
Palmetto in time to be voted at the Annual Meeting, the shares represented
thereby will be voted in accordance with the instructions marked thereon.
Executed but unmarked proxies will be voted FOR the election of the two nominees
of First Palmetto's Board of Directors as directors and FOR the proposed reverse
stock split. Proxies marked as abstentions will not be counted as votes cast. In
addition, shares held in street name which have been designated by brokers on
proxy cards as not voted will not be counted as votes cast. Proxies marked as
abstentions or as broker no votes, however, will be treated as shares present
for purposes of determining whether a quorum is present. Except for procedural
matters incidental to the conduct of the Annual Meeting, First Palmetto does not
know of any other matters that are to come before the Annual Meeting. If any
other matters are properly brought before the Annual Meeting as to which proxies
in the accompanying form confer discretionary authority, the persons named in
the accompanying proxy will vote the shares represented by such proxies on such
matters as determined by a majority of the Board of Directors. The proxies
solicited on behalf of the Board of Directors confer discretionary authority
upon the holders thereof with respect to matters incident to the conduct of the
Annual Meeting and with respect to any other matter presented at the Annual
Meeting if notice of such matter has not been delivered to First Palmetto in
accordance with the Certificate of Incorporation.
The securities which can be voted at the Annual Meeting consist of shares
of common stock of First Palmetto, par value $0.01 per share (the "Common
Stock"). Each share entitles its owner to one vote on all matters, including the
election of directors. The close of business on _________ __, 2000 has been
fixed by the Board of Directors as the record date for determination of
stockholders entitled to vote at the Annual Meeting (the "Record Date"). The
number of shares outstanding on that date was 712,010. The presence, in person
or by proxy, of one-third of the total number of outstanding shares of Common
Stock is necessary to constitute a quorum at the Annual Meeting.
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REVOCATION OF PROXIES
- --------------------------------------------------------------------------------
The presence of a stockholder at the Annual Meeting will not automatically
revoke such stockholder's proxy. However, stockholders may revoke a proxy at any
time prior to its exercise by filing with the Secretary of First Palmetto a
written notice of revocation, by delivering to First Palmetto a duly executed
proxy bearing a later date or by attending the Annual Meeting and voting in
person.
<PAGE>
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STOCK OWNERSHIP OF MANAGEMENT
- --------------------------------------------------------------------------------
The following table sets forth information as of the Record Date with
respect to the shares of Common Stock beneficially owned by each director and
director emeritus of First Palmetto, including the Chief Executive Officer, and
by all directors, executive officers and directors emeritus of First Palmetto as
a group. This information is based on information furnished to First Palmetto by
such persons.
<TABLE>
<CAPTION>
Amount and Nature Percent of
of Beneficial Common Stock
Ownership (1) Outstanding
------------- -----------
<S> <C> <C>
Directors:
H. Davis Green, Jr. 28,281 3.97%
Samuel R. Small 81,660 11.47
Steve G. Williams, Jr. 31,204 4.38
Pierce W. Cantey, Jr. 25,974 3.65
William R. Clyburn 6,500 *
Frank D. Goodale, Jr. 6,140 *
Donald H. Holland 11,300 1.59
Charlie E. Nash 14,221 2.00
Glenn G. Tucker 56,087 7.88
All Directors and Executive Officers
as a Group (9 persons) 261,367 36.71
Directors Emeritus:
H.B. Marshall, Jr. 2,500 *
William F. Tripp, Jr. 2,500 *
All Directors, Executive Officers
and Directors Emeritus as a Group (11 persons) 266,367 37.41
</TABLE>
______________
* Less than 1% of the outstanding Common Stock.
(1) In accordance with Rule 13d-3 under the Securities Exchange Act of 1934
(the "1934 Act"), a person is considered the beneficial owner of any shares
of Common Stock (a) over which he has or shares voting or investment power
or (b) of which he has the right to acquire beneficial ownership at any
time within 60 days of the Record Date. As used herein, "voting power" is
the power to vote or direct the vote of shares, and "investment power" is
the power to dispose or direct the disposition of shares. This table
includes shares owned directly by directors and officers of First Palmetto
as well as shares held by their spouses and minor children and trusts of
which certain of them are trustees, but does not include shares held or
beneficially owned by other relatives as to which they disclaim beneficial
ownership.
Section 16(a) Beneficial Ownership Reporting
Section 16(a) of the 1934 Act requires First Palmetto's officers and
directors, and persons who own more than 10% of a registered class of First
Palmetto's equity securities, to file reports of ownership and changes in
ownership with the Securities and Exchange Commission. Officers, directors and
greater than 10% stockholders are required to furnish First Palmetto with copies
of all such reports. Based solely on its review of copies of such reports
received by it, or written representations from certain reporting persons that
no annual report of change in beneficial ownership is required, First Palmetto
believes that, during the year ended September 30, 1999, all such filing
requirements were complied with.
2
<PAGE>
- --------------------------------------------------------------------------------
PRINCIPAL HOLDERS OF COMMON STOCK
- --------------------------------------------------------------------------------
The following table sets forth information as of the Record Date with
respect to the persons believed by First Palmetto to be the beneficial owners of
more than five percent of the outstanding shares of Common Stock. This
information is based upon the most recent Schedule 13D filed by such persons
with the Securities and Exchange Commission or information provided to First
Palmetto by such persons.
<TABLE>
<CAPTION>
Percent
Name and Address Amount and Nature of of Common Stock
of Beneficial Owner Beneficial Ownership (1) Outstanding
- ------------------- ------------------------ -----------
<S> <C> <C>
Samuel R. Small 81,660 11.47 %
407 DeKalb Street
Camden, South Carolina
Glenn G. Tucker 56,087 7.88 %
1510 Lyttleton Street
Camden, South Carolina
</TABLE>
_______________
(1) For the definition of beneficial ownership and additional information with
respect to the nature of the beneficial ownership, see footnote (1) to the
table in "Stock Ownership of Management."
- --------------------------------------------------------------------------------
PROPOSAL I -- ELECTION OF DIRECTORS
- --------------------------------------------------------------------------------
Pursuant to First Palmetto's Restated Certificate of Incorporation, the
directors are divided into three classes, as nearly equal in number as possible,
with the number of directors as specified in the Bylaws. In general, the term of
office of only one class of directors expires in each year, and their successors
are elected for terms of three years and until their successors are elected and
qualified. Delaware law provides that directors shall be elected by a plurality
of the votes of the shares present in person or represented by proxy at the
Annual Meeting and entitled to vote on the election of directors.
The Board of Directors has nominated Pierce W. Cantey, Jr. and William R.
Clyburn, who are currently directors of First Palmetto (see below), to serve for
terms of three years and until their successors are elected and qualified. It is
the intention of the persons named in the proxy to vote the shares represented
by each properly executed proxy for the election as directors of such nominees
for their respective terms, unless otherwise directed by the stockholder. The
nominees have consented to stand for election and to serve if elected as
directors. If any person nominated by the Board of Directors fails to stand for
election or is unable to accept election, the proxies will be voted for the
election of such other person as the Board of Directors may recommend.
The Board of Directors recommends that stockholders vote "FOR" the election
of the nominees of the Board of Directors. Unless otherwise indicated, properly
executed proxies will be voted in accordance with the Board's recommendation.
3
<PAGE>
Information as to Directors, Directors Emeritus and Executive Officers
The following table sets forth certain information with respect to First
Palmetto's directors and executive officers.
<TABLE>
<CAPTION>
Year First Year
Elected Term
Name Age(1) Position(s) Held Director(2) Expires
- ---- ------ ---------------- ----------- -------
<S> <C> <C> <C> <C>
H. Davis Green, Jr. 62 Chairman of the Board 1970 2001
of First Palmetto
Samuel R. Small 52 President and Chief Executive 1980 2002
Officer of First Palmetto and
Chairman of the Board, President
and Chief Executive Officer of
the Bank
Steve G. Williams, Jr. 43 Senior Vice President and 1989 2001
Treasurer of First Palmetto
and Senior Vice President
Regulatory Administration/
Communications of the Bank
Pierce W. Cantey, Jr. 58 Director 1996 2000
William R. Clyburn 63 Director 1968 2000
Frank D. Goodale, Jr. 66 Director 1979 2002
Donald H. Holland 71 Director 1971 2001
Charlie E. Nash 58 Director 1983 2002
Glenn G. Tucker 50 Director 1980 2001
</TABLE>
_____________________
(1) As of December 31, 1999.
(2) Except for Mr. Cantey, year first elected as a director of Palmetto State
Savings Bank of South Carolina or First Federal Savings and Loan Association
of Camden, the predecessors of the Bank, which is First Palmetto's wholly-
owned subsidiary. Each director of First Palmetto is also a director of the
Bank.
The principal occupations and business experience for the past five
years of each director, director emeritus and executive officer of First
Palmetto is set forth below.
Directors:
- ---------
H. Davis Green, Jr. is an appraiser and the owner of H. Davis Green, Jr.
Appraisals in Camden. Mr. Green has been Chairman of the Board of First Palmetto
since 1991.
Samuel R. Small has been President and Chief Executive Officer of First
Palmetto and Chief Executive Officer of the Bank since 1990. In 1991, he became
Chairman of the Board of the Bank.
Steve G. Williams, Jr. has been Senior Vice President and Treasurer of
First Palmetto and an executive officer of the Bank since 1990.
4
<PAGE>
Pierce W. Cantey, Jr. is the managing partner of Cantey, Tiller, Pierce
and Associates, LLP, an accounting firm.
William R. Clyburn is the retired general manager of H&H Chevrolet. He is
President of Bill Clyburn Realty, Inc.
Frank D. Goodale, Jr. is a jeweler and owner of F.D. Goodale, a jewelry
retailer in Camden.
Donald H. Holland is an attorney in Camden. He has served as a South
Carolina State Senator since 1969.
Charlie E. Nash is the retired President of Charlie E. Nash Insurance
Agency, Inc. in Camden.
Glenn G. Tucker has been President of Tucker Down East Resources, Inc., a
recreational services provider, since January 1996. Prior to that, he was the
co-publisher of the Chronicle - Independent in Camden.
Directors Emeritus:
- ------------------
H.B. Marshall, Jr. is a retired insurance agent.
William F. Tripp, Jr. is a retired plant manager of the E.I. DuPont de
Nemours Textile Fibers Plant in Camden.
- --------------------------------------------------------------------------------
MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
First Palmetto's entire Board of Directors serves as a nominating
committee for the purpose of selecting the Board's nominees for election as
directors. The Board of Directors held one meeting as a nominating committee
during fiscal 1999. While the Board of Directors will consider nominees
recommended by stockholders, it has not actively solicited recommendations from
First Palmetto's stockholders for nominees, nor has it established any
procedures for this purpose other than as set forth in the Certificate of
Incorporation. To be timely, a stockholder's notice of nomination or new
business must be delivered to or mailed and received at the principal executive
offices of First Palmetto not later than 30 days nor more than 90 days prior to
the annual meeting; provided, however, that in the event that less than 45 days'
notice or prior public disclosure of the date of the annual meeting is given or
made to stockholders, notice by the stockholder to be timely must be so received
not later than the close of business on the 15th day following the date on which
notice is mailed or prior public disclosure is made of the date of an annual
meeting. Public disclosure of the date of the Annual Meeting was made by the
issuance of a press release on _________ __, 1999. A stockholder's notice of
nomination or new business must also set forth certain information specified in
First Palmetto's Certificate of Incorporation concerning the stockholder and
each person the stockholder proposes to nominate for election or the business
the stockholder proposes to bring before the annual meeting. Stockholder
nominations and new business may be proposed by any stockholder eligible to vote
at an annual meeting, provided the notice is timely and complies with the
informational requirements of the Certificate of Incorporation. Nominations and
new business by any stockholder eligible to vote at the Annual Meeting were
required to be received by First Palmetto on or before __________ __, 2000.
There are no standing committees of the Board of Directors of First
Palmetto. The Board of Directors of the Bank carries out many of its duties
through committees.
The Bank's Audit Committee, currently composed of directors Cantey,
Holland and Nash, is responsible for the review and evaluation of First
Palmetto's and the Bank's internal controls and accounting procedures. It also
periodically reviews audit reports with the independent auditors and recommends
the annual appointment of such auditors. The Audit Committee held one meeting
during fiscal 1999.
The Bank's Compensation Committee, currently composed of directors
Cantey, Green, Holland, Nash and Tucker held one meeting during fiscal 1999.
5
<PAGE>
During fiscal 1999, First Palmetto's Board of Directors held five meetings
and the Bank's Board of Directors held 12 meetings. No director of First
Palmetto and the Bank attended fewer than 75% of the total meetings of the
boards of directors and committees on which such director served during this
period.
- --------------------------------------------------------------------------------
EXECUTIVE COMPENSATION
- --------------------------------------------------------------------------------
The following table sets forth cash and noncash compensation awarded to or
earned by the Chief Executive Officer of First Palmetto during fiscal 1999, 1998
and 1997.
SUMMARY COMPENSATION TABLE
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Annual Compensation Long-Term Compensation
-------------------------------------------------------------------------
Awards Payouts
-------------------------------------
Other
Annual Restricted Securities All Other
Compen- Stock Underlying LTIP Compen-
Name and Salary Bonus sation (2) Awards(s) Options/SARs Payouts sation (3)
Principal Position (1) Year ($) ($) ($) ($) (#) ($) ($)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Samuel R. Small 1999 200,000 10,000 -- -- -- (4) -- 30,350
President and Chief 1998 182,000 -- -- -- -- -- 17,562
Executive Officer 1997 167,667 -- -- -- -- -- 8,400
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) No other executive officer earned in excess of $100,000 in salary and bonus
in fiscal 1999, 1998 and 1997.
(2) Executive officers of First Palmetto receive indirect compensation in the
form of certain perquisites and other personal benefits. The amount of such
benefits in fiscal 1999, 1998 and 1997 by the named executive officer did
not exceed 10% of the executive's annual salary and bonus.
(3) Represents directors' fees for each of fiscal 1999, 1998 and 1997 and
unused vacation for fiscal 1999, 1998 and 1997.
(4) No options were granted or outstanding during fiscal 1999.
Directors' Compensation
During fiscal 1999, each director of the Bank received an annual fee of
$9,000. Non-employee directors also receive a fee of $100 per committee meeting
attended.
Report of the Compensation Committee
As members of the Compensation Committee of the Bank, it is our duty to
review compensation policies applicable to executive officers; to consider the
relationship of corporate performance to that compensation; to recommend salary
and bonus levels for executive officers for consideration by the Board of
Directors of the Bank; and to administer various incentive plans of First
Palmetto and the Bank.
Overview. Under the compensation policies of the Bank, which are endorsed
by the Compensation Committee, compensation is paid based both on the executive
officer's performance and the performance of First Palmetto and the Bank. In
assessing the performance of First Palmetto and the Bank for purposes of
compensation decisions, the Compensation Committee considers a number of
factors, including profits of First Palmetto and the Bank during the past year
relative to their profit plans, changes in the value of First Palmetto's stock,
reports of federal regulatory examinations of First Palmetto and the Bank,
growth, business plans for future periods, and regulatory capital levels. The
Compensation Committee assesses individual executive performance based upon its
determination of the officer's contributions to the performance of First
Palmetto and the Bank and the accomplishment of First Palmetto's and the Bank's
strategic goals. In assessing performance for the year ended September 30, 1999
and previous years, the members of the Compensation Committee did not make use
of a
6
<PAGE>
mechanical weighting formula or use specific performance targets, but instead
weighed the described factors as they deemed appropriate in the total
circumstances.
Base Salary. The 1999 salary levels of First Palmetto's senior officers
were established in 1998 consistent with this compensation policy. In its 1998
review of base compensation, the Compensation Committee determined that the
performance of Mr. Small in managing First Palmetto and the Bank was
satisfactory, based upon the 1998 financial performance of First Palmetto,
including the growth in assets, income, and capitalization during 1998; the
financial performance trends for 1998 and the preceding four years, which
included growth in assets, net income, and stockholders' equity in each year;
the results of confidential regulatory examinations; his continued involvement
in community affairs in the communities served by the Bank; First Palmetto's
planned levels of financial performance for 1999; and a general level of
satisfaction with the management of First Palmetto and the Bank. Based upon the
results of this review, the salary of Mr. Small was established at $200,000 per
year for 1999, which represented an increase of 9.9% over his 1998 base salary.
The Compensation Committee believes that Mr. Small's total compensation for 1999
appropriately reflected his contribution to First Palmetto and the Bank based on
the factors considered for compensation decisions.
December 31, 1999
H. Davis Green
Donald H. Holland
Charlie E. Nash
Glenn G. Tucker
Compensation Committee Interlocks and Insider Participation
No member of the Compensation Committee is a former or current officer or
employee of First Palmetto or the Bank.
Donald H. Holland, a member of the Compensation Committee and an attorney
in Camden, South Carolina, renders legal services to the Bank in connection with
loan closings and other corporate matters.
Stock Performance Comparisons
The following graph, which was prepared by SNL Securities LC,
Charlottesville, Virginia, shows the cumulative total return on the Common Stock
of First Palmetto over the last five years compared with the S&P 500 Index and a
portfolio of all publicly traded thrifts and thrift holding companies.
Cumulative total return on the stock or the index equals the total increase in
value since September 30, 1994 assuming reinvestment of all dividends paid into
the stock or the index, respectively. The graph was prepared assuming that $100
was invested on September 30, 1994 in the Common Stock, and the securities
included in the indexes. There is not an established public trading market for
the Common Stock.
7
<PAGE>
CUMULATIVE TOTAL STOCKHOLDER RETURN
COMPARED WITH PERFORMANCE OF SELECTED INDEXES
September 30, 1994 through September 30, 1999
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Period Ending
=========================================================================
Index 9/30/94 9/30/95 9/30/96 9/30/97 9/30/98 9/30/99
===============================================================================================================
<S> <C> <C> <C> <C> <C> <C>
First Palmetto Financial Corp. 100.00 103.27 132.34 168.65 224.31 341.30
S&P 500 100.00 129.75 156.12 219.10 238.94 305.28
SNL Thrift Index 100.00 130.96 158.17 274.83 246.40 234.70
</TABLE>
Certain Transactions
First Palmetto and the Bank have had, and expect to have in the future,
transactions in the ordinary course of business with directors and executive
officers and members of their immediate families, as well as with principal
stockholders. All loans included in such transactions were made in the ordinary
course of business, on substantially the same terms, including interest rates
and collateral, as those prevailing for comparable transactions with
non-affiliated persons. It is the belief of management that such loans neither
involved more than the normal risk of collectibility nor presented other
unfavorable features.
8
<PAGE>
- --------------------------------------------------------------------------------
PROPOSAL II --REVERSE STOCK SPLIT
- --------------------------------------------------------------------------------
Summary
The Board of Directors has authorized, and recommends for your approval, a
proposal (the "Reverse Stock Split Proposal") to amend First Palmetto's Restated
Certificate of Incorporation to effect a 1-for-125 reverse stock split of the
Common Stock and to issue shares of preferred stock, par value $.01 per share
(the "Preferred Stock"), in exchange for shares of Common Stock held by any
First Palmetto stockholder who, following the reverse stock split, would hold
less than one share of Common Stock of record in any separate account.
Stockholders of record whose shares of Common Stock would otherwise be
converted into less than 1 share of Common Stock in the reverse stock split will
receive one share of Preferred Stock for each such share, while registered
stockholders whose shares of Common Stock are converted into 1 or more shares of
Common Stock will receive "new" Common Stock. We refer to the reverse stock
split and the conversion of shares of Common Stock into Preferred Stock as the
"Transaction." We also refer to our stockholders whose shares of Common Stock
are registered in their names as "registered stockholders." If approved, the
Reverse Stock Split Proposal will take effect on the date of filing with the
Secretary of State of Delaware of a Certificate of Amendment, unless First
Palmetto specifies otherwise (the "Effective Date"). In order to complete the
Reverse Stock Split Proposal, a majority of the stockholders entitled to vote at
the Annual Meeting must approve amendments to First Palmetto's Restated
Certificate of Incorporation (the "Charter"). Each member of the Board of
Directors and all executive officers of First Palmetto have indicated that they
intend to vote in favor of the Reverse Stock Split Proposal.
We attach the proposed amendments to the Charter to this Proxy Statement as
Appendix A. If approved, the Reverse Stock Split Proposal will affect First
Palmetto stockholders as follows after completion:
<TABLE>
Stockholder as of Effective Date Net Effect After Reverse Stock Split
- -------------------------------- ------------------------------------
<S> <C>
Registered stockholders holding 125 shares of Shares of Common Stock will be converted into one
Common Stock in a record account. whole share of new Common Stock on a 1-for-125
basis.
Registered stockholders holding fewer than 125 Shares of Common Stock will be converted into
shares of Common Stock in a record account. whole shares of Preferred Stock on a one-for-one
basis.
Registered stockholders holding more than 125 Shares of Common Stock will be converted into one or
shares of Common Stock in a record account. more shares of new Common Stock on a 1-for-125 basis
and the remainder, if any, will be converted into
whole shares of Preferred Stock on a one-for-one
basis.
Stockholders holding Common Stock in street name Nominees (such as a bank or broker) may have
through a nominee (such as a bank or broker) required procedures, and First Palmetto stockholders
holding Common Stock in street name should contact
their nominees to determine how they will be
affected by the reverse stock split.
</TABLE>
Reasons for Transaction
The Board of Directors recommends that First Palmetto stockholders approve
the Reverse Stock Split Proposal for the following reasons, among others:
9
<PAGE>
. First Palmetto has approximately 394 registered stockholders. There is
no established public trading market in which shares of the Common
Stock are regularly traded, nor are there any uniformly quoted prices
for such shares. As a result, the market for the Common Stock is
relatively illiquid.
. The Common Stock is registered under the 1934 Act. As a result, First
Palmetto is subject to the periodic reporting and proxy solicitation
requirements of the Securities and Exchange Commission ("SEC") under
the 1934 Act. The out-of-pocket and internal costs to First Palmetto
associated with the preparation and filing of such reports when
compared to the limited number of stockholders and relatively illiquid
market for the Common Stock is, in the opinion of the Board of
Directors, unwarranted. First Palmetto estimates that, upon
termination of its obligation to file such reports with the SEC, it
will achieve savings of approximately $50,000 annually.
Recommendation of Board of Directors; Fairness of Reverse Stock Split Proposal
The Board believes that the Reverse Stock Split Proposal, taken as a whole,
is fair to, and in the best interests of First Palmetto and its stockholders,
including those who will receive Preferred Stock in exchange for their Common
Stock, those who will receive shares of new Common Stock and those who will
receive both Preferred Stock and new Common Stock. The Board also believes that
the process by which the Transaction is to be approved is fair. The Board
unanimously approved the Reverse Stock Split Proposal. The Board recommends that
the stockholders vote for approval and adoption of the Reverse Stock Split
Proposal. Each member of the Board and each executive officer of First Palmetto
who owns shares of Common Stock has advised First Palmetto that he intends to
vote his shares in favor of the Reverse Stock Split Proposal.
The Board has retained for itself the absolute authority to reject (and not
implement) the Reverse Stock Split Proposal (even after approval thereof) if it
determines subsequently that the Reverse Stock Split Proposal is not then in the
best interests of First Palmetto and its stockholders.
First Palmetto did not obtain an independent fairness opinion in connection
with the proposed Reverse Stock Split Proposal. However, the Board considered a
number of factors in determining whether it was in the best interests of First
Palmetto and its stockholders to undertake the Transaction and reduce the number
of stockholders to fewer than 300 persons in order to terminate the registration
of its Common Stock under the 1934 Act. The Board of Directors reviewed and
discussed with management of First Palmetto materials which had been prepared by
management and distributed to the Board relating to cost savings to be achieved
by terminating the registration of the Common Stock. The Board of Directors
determined that cost savings of approximately $50,000 per year could be achieved
if First Palmetto terminated the registration. The Board of Directors also
considered the time and effort currently required of management to comply with
the reporting and other requirements associated with continued registration of
the Common Stock under the 1934 Act. The Board of Directors considered the
effect that terminating the registration of the Common Stock might have on the
market for the Common Stock and the ability of stockholders to buy and sell
shares. The Board of Directors determined that the cost savings, reduced burden
on management and increased confidentiality of proprietary information to be
achieved by terminating registration of the Common Stock under the 1934 Act
outweighed any potential detriment from termination of registration.
The Board of Directors considered an independent analysis and evaluation of
the estimated fair market value of the Preferred Stock to be issued to
stockholders holding fewer than 125 shares of Common Stock of record in any one
account. Based of such independent analysis and evaluation, as well as its own
consideration of the comparative rights of the Preferred Stock and the Common
Stock, the Board of Directors believes that the Preferred Stock constitutes fair
consideration for a stockholder's fractional Common Stock interest. In
particular, the Board of Directors considered the following:
. Although the Preferred Stock will be nonvoting and may be redeemable,
the Preferred Stock will have a dividend and liquidation preference.
. The Preferred Stock may have a more liquid trading market relative to
the Common Stock.
. If the Preferred Stock is redeemed, the redemption piece will be at a
premium to the fair market value.
10
<PAGE>
. In a negotiated acquisition of First Palmetto, the Preferred Stock
will be valued on the same basis as the Common Stock, subject to the
reverse stock split rates.
See page __ "-- Evaluation of RP Financial."
The Board of Directors considered two alternative transactions, including
an issuer tender offer and open market purchases, to accomplish the reduction in
the number of stockholders to fewer than 300 persons, but ultimately determined
the Reverse Stock Split Proposal was the preferred method. The Board of
Directors considered no other alternative transactions.
The Transaction is not structured so that approval of at least a majority
of unaffiliated stockholders is required. No independent committee of the Board
of Directors has reviewed the fairness of the Reverse Stock Split Proposal. No
unaffiliated representative acting solely on behalf of the stockholders for the
purpose of negotiating the terms of the Reverse Stock Split Proposal or
preparing a report covering the fairness of the Reverse Stock Split Proposal was
retained by First Palmetto or by a majority of directors who are not employees
of First Palmetto. The Board of Directors believes that the Transaction is
substantively fair to all unaffiliated stockholders notwithstanding the absence
of such a committee or representative for the following reasons: all current
stockholders will retain an ownership interest in First Palmetto; stockholders
who receive shares of Preferred Stock will acquire a security which the
Evaluation has determined to be substantially equivalent in value to their
Common Stock interests, will have dividend rights equivalent to those of the
Common Stock, will have liquidation rights in preference to holders of new
Common Stock, will be redeemable by First Palmetto in two years at a redemption
price which is the greater of the current fair market value of the Preferred
Stock as determined by the Board of Directors or 115% of a current appraisal of
such value, in the event of a negotiated acquisition of First Palmetto will be
valued by the Board on a basis equivalent to the Common Stock, and prior to
certain transfers may be repurchased by First Palmetto at a price which is the
greater of the current fair market value of the Preferred Stock as determined by
the Board of Directors or 115% of a current appraisal of such value.
The Board believes that the Transaction is procedurally fair because the
reverse stock split is being effected in accordance with Delaware law and hence
will require the affirmative vote of the holders of a majority of First
Palmetto's outstanding Common Stock; First Palmetto's officers and directors as
a group do not own of record or beneficially a sufficient number of shares to
assure approval of the Reverse Stock Split Proposal; between the date hereof and
the Effective Date (defined below) of the reverse stock split, all stockholders
of First Palmetto will have an opportunity to adjust the number of shares of
Common Stock owned by them so that holders who would otherwise be converted to
only Preferred Stock can become continuing holders of new Common Stock, and
continuing holders can so divide or otherwise adjust their existing holdings as
to become Preferred holders as to some or all of their shares. For example,
family members or other related stockholders who hold fewer than 125 shares can
combine their shares into one separate account and continue to hold new Common
Stock. Also, holders of fewer than 125 shares can purchase additional shares in
open market transactions and thereby continue to hold 125 shares. Open market
purchases may be restricted, however, due to the limited trading market for the
Common Stock.
After consideration of all the facts, all of the directors, including those
who are not employees of First Palmetto, have determined that the Reverse Stock
Split Proposal is fair to unaffiliated stockholders. In its determination, the
Board of Directors considered all factors equally, and did not assign weights to
any factors.
Evaluation of RP Financial
The Board of Directors of First Palmetto has retained RP Financial, LC ("RP
Financial") as its financial advisor in connection with the Reverse Stock Split
Proposal and requested RP Financial to provide an independent analysis and
evaluation (the "Evaluation") of the estimated fair market value of the
Preferred Stock to be issued to holders of fewer than 125 shares of Common
Stock. In requesting the Evaluation, the Board of Directors did not give any
special instructions to or impose any limitations upon the scope of the
investigation which RP Financial might wish to conduct to enable it to give its
opinion. RP Financial has delivered the Evaluation to First Palmetto to the
effect that:
. as of December 17, 1999, the estimated value of the Common Stock was
$75.00 per share; and
11
<PAGE>
. the fair market value of the Preferred Stock is substantially
equivalent to $75.00 per share.
RP Financial. RP Financial, Arlington, Virginia, is a financial consulting
firm that, among other things, specializes in the fair market valuation of the
equity and debt securities issued by financial institutions and their subsidiary
companies. RP Financial has been approved as a qualified financial institution
appraisal firm by the Office of Thrift Supervision, the Federal Deposit
Insurance Corporation, and numerous state banking agencies. The principals and
staff of RP Financial have served as fair market appraisers and consultants for
over 500 financial institutions pursuant to initial and secondary offerings
(including rights offerings), business combinations, mutual-to-stock
conversions, mutual holding company formations, employee stock ownership plans
and stock option plans, audited financial statement disclosure and other
purposes. Neither RP Financial nor its employees have any present or
contemplated future interest in the stock of First Palmetto or its principals or
any other interest that might tend to prevent RP Financial from making a fair
and unbiased appraisal.
Valuation of Common Stock. A fair market valuation of the Common Stock was
made by RP Financial in reliance upon information contained herein, First
Palmetto's audited financial statements for the fiscal years ended September 30,
1995 through September 30, 1999, and First Palmetto's internal and regulatory
data for the period covering September 30, 1995 through September 30, 1999. RP
Financial also considered the following factors, among others:
. the present operating results and financial condition of First
Palmetto, and the economic and demographic conditions in First
Palmetto's existing market area;
. historical, financial and other information relating to First
Palmetto;
. a comparative evaluation of the operating and financial statistics of
First Palmetto with those of other similarly situated publicly-traded
thrift institutions;
. the current dividend policy of First Palmetto;
. the pro forma impact of the proposed reverse 1-for-125 stock split;
and
. the trading market for securities of comparable institutions and
general conditions in the market for such securities.
RP Financial's valuation approach focused on first deriving a value for the
Common Stock on a comparable publicly-traded basis, and then applied a discount
to the comparable public value to account for the closely held nature of the
Common Stock and the lack of marketability resulting from the illiquid
characteristics of the Common Stock. To derive the publicly-traded equivalent
value for the Common Stock, RP Financial applied market value approaches --
specifically price-to-earnings (P/E) and price-to-tangible book value (P/TB) --
and the discounted earnings approach. The applications of the market value
approaches were based on the pricing multiples of a selected group of comparable
publicly-traded institutions (the "Peer Group"), taking into account RP
Financial's comparative analysis of First Palmetto relative to the Peer Group.
1. Price-to-Earnings. The application of the P/E valuation method
-----------------
calculated the Common Stock market value by applying a valuation P/E multiple,
derived from the Peer Group's core P/E multiple as of December 17, 1999, times
First Palmetto's recurring or core earnings for the 12 months ended September
30, 1999.
2. Price-to-Book. The application of the P/TB valuation method calculated
-------------
the Common Stock market value by applying a valuation P/TB ratio, derived from
the Peer Group's P/TB ratio as of December 17, 1999, to the Bank's tangible book
value as of September 30, 1999.
3. Discounted Earnings. The discounted earnings approach calculated the
-------------------
Common Stock market value through applying a discount rate to First Palmetto's
core or recurring earnings for the twelve months ended September 30, 1999.
12
<PAGE>
On the basis of the foregoing, RP Financial has advised First Palmetto
that, in its Fair Market Valuation dated December 17, 1999, the value of the
Common Stock, without give effect to the proposed reverse stock split, was
$75.00 per share.
Analysis and Evaluation of Preferred Stock. In reaching its conclusion that
the fair market value of the Preferred Stock and Common Stock were substantially
equivalent, RP Financial took into consideration the comparative rights of the
Preferred Stock and the Common Stock.
. RP Financial considered the loss of voting rights by the holders of
the Preferred Stock and the ability of First Palmetto to redeem the
Preferred Stock at its option, both of which were considered to be
negative valuation considerations for the Preferred Stock relative to
the Common Stock. It is RP Financial's view that the negative
valuation considerations associated with the loss of voting rights and
the redemption feature were offset by other positive valuation
considerations associated with the Preferred Stock, which included the
dividend preference and liquidation preference for the Preferred
Stock, the probability of a more liquid trading market for the
Preferred Stock and the premium price to be received by the holders of
the Preferred Stock in the event of a redemption.
. RP Financial anticipates that the Preferred Stock will have a more
liquid trading market relative to the Common Stock, since the 1-for-
125 reverse stock split of the Common Stock will result in fewer
shares of Common Stock outstanding in comparison to the number of
shares of Preferred Stock that will be outstanding. Additionally, the
reverse stock split adjusted price of the Common Stock will be
significantly higher than the price of the Preferred Stock, which RP
Financial also believes will result in a relatively more liquid
trading market for the Preferred Stock.
. If the Preferred Stock is redeemed by First Palmetto, the redemption
price will be the greater of the current fair market value of the
Preferred Stock as determined by the Board of Directors or 115% of a
current independent appraisal of such value. The premium associated
with the redemption price is believed by RP Financial to adequately
compensate the holders of the Preferred Stock at the time of
redemption for foregoing potential increases in value. RP Financial's
conclusion in this regard considered historical control premium data
for thrift acquisitions announced in 1998 and 1999, which indicate
that the average control premium paid for such acquisitions equaled
24.0% and 38.7%, respectively, based on the closing stock prices of
the acquired institutions one day prior to the announcement date of
their acquisition. RP Financial concluded that the 15% premium upon
redemption reasonably reflects the uncertainty of future events, yet
still compensates the holders of Preferred Stock adequately for
foregoing potential increases in value, given that there is no
certainty as to the timing or probability that a negotiated
acquisition of First Palmetto would be completed following the
redemption.
. RP Financial noted that, overall, the Preferred Stock has the same
dividend and price under a merger as the Common Stock. RP Financial
determined that the downward valuation adjustment relative to the
Common Stock for lack of voting rights and redemption provision are
substantially and equally offset by the Preferred Stock's dividend
preference, liquidation preference, anticipated greater liquidity and
premium in redemption. These factors were all considered in RP
Financial's conclusion that the Preferred Stock has a fair market
value substantially equivalent to the Common Stock.
A copy of the Evaluation is set forth as Appendix B to this Proxy Statement
---------------------------------------------------------------------------
and should be read in its entirety by First Palmetto stockholders.
- -----------------------------------------------------------------
13
<PAGE>
Conduct of First Palmetto's Business after Reverse Stock Split
First Palmetto expects its business and operations to continue as they are
currently being conducted and, except as disclosed below, the reverse stock
split is not anticipated to have any effect upon the conduct of its business.
If the Reverse Stock Split Proposal is effected, First Palmetto believes
that, based on First Palmetto's stockholder records, fewer than 300 stockholders
of record of new Common Stock will remain. In addition, individuals who are
members of the Board of Directors and executive officers of First Palmetto now
owning approximately 37% of the Common Stock will own approximately 39% of the
new Common Stock after the Reverse Stock Split. See page __ "Stock Ownership of
Management."
First Palmetto plans, as a result of the reverse stock split, to become a
privately held company. The registration of the Common Stock under the 1934 Act
will be terminated. In addition, because the new Common Stock will no longer be
publicly held, First Palmetto will be relieved of the obligation to comply with
the proxy rules of Regulation 14A under Section 14 of the 1934 Act, and its
officers and directors and stockholders owning more than 10% of the Common Stock
will be relieved of certain obligations under the 1934 Act. First Palmetto
estimates that termination of the registration of the Common Stock under the
1934 Act will save First Palmetto approximately $50,000 per year in legal,
accounting and other expenses.
Other than as described in this Proxy Statement, neither First Palmetto nor
its management has any current plans or proposals to effect any extraordinary
corporate transaction, such as a merger, reorganization or liquidation; to sell
or transfer any material amount of its assets; to change its Board of Directors
or management; to change materially its indebtedness or capitalization; or
otherwise to effect any material change in its corporate structure or business.
Structure of Reverse Stock Split
The reverse stock split is of the Common Stock. If the Reverse Stock Split
Proposal is approved and occurs, the reverse stock split will occur on the
Effective Date. Assuming stockholder approval of the Reverse Stock Split
Proposal is obtained, First Palmetto plans to file the Certificate of Amendment
at a time to be determined by the officers of First Palmetto, but in any event
not later than ______________. The Board, however, has retained for itself the
absolute authority to reject (and not implement) the Reverse Stock Split
Proposal (even after approval thereof), if it subsequently determines that the
Reverse Stock Split Proposal is not then in the best interests of First Palmetto
and its stockholders. All registered stockholders on the Effective Date will
receive 1 share of new Common Stock for every 125 shares of Common Stock held in
record accounts at that time. Any registered stockholder who holds fewer than
125 shares of Common Stock in a record account will receive one share of
Preferred Stock for each share of Common Stock.
Purpose of Reverse Stock Split
The purpose of the Reverse Stock Split Proposal is to reduce the number of
stockholders of record of Common Stock to fewer than 300 persons in order to
relieve First Palmetto of the administrative burden and cost and competitive
disadvantages associated with filing reports and otherwise complying with the
requirements of registration under the 1934 Act, by deregistering its Common
Stock under the 1934 Act. If the Reverse Stock Split is implemented, holders of
more than 125 shares will benefit by an increase in their percentage ownership
of the Common Stock.
The Transaction will provide those registered stockholders with fewer than
125 shares with the opportunity to maintain an equity interest in First Palmetto
through the ownership of Preferred Stock. Moreover, First Palmetto will benefit
from substantial cost savings as a result of the Reverse Stock Split Proposal.
The Board believes that the disadvantages of having First Palmetto continue
to be a 1934 Act registrant outweigh any advantages. The Board has no present
intention to raise capital through sales of securities in a public offering in
the future or to acquire other business entities using stock as the
consideration for any such acquisition.
14
<PAGE>
Accordingly, First Palmetto is not likely to make use of any advantage (for
raising capital, effecting acquisitions or other purposes) that First Palmetto's
status as a reporting company may offer.
First Palmetto incurs direct and indirect costs associated with compliance
with the SEC's filing and reporting requirements imposed on public companies.
First Palmetto also incurs substantial indirect costs as a result of, among
other things, the executive time expended to prepare and review such filings.
Since First Palmetto has relatively few executive personnel, these indirect
costs can be substantial. Based on its experience in prior years, First
Palmetto's direct costs, which include the fees and expenses of independent
auditors, SEC legal counsel, printing, mailing, and SEC filing fees are
estimated to approximate $50,000 annually.
Estimates of the annual savings to be realized if the Reverse Stock Split
Proposal is approved and implemented are based upon actual costs to First
Palmetto of the services and disbursements in each of the above categories that
were reflected in its recent historical financial statements. The costs of the
services and disbursements in each category for the fiscal years ended September
30, 1999 and 1998, respectively, were as follows: independent auditors and other
accountants - $104,000 and $79,000; SEC legal counsel - $9,000 and $4,400; and
miscellaneous costs - $6,400 and $6,400. Management's estimates are based on
information provided or upon verifiable assumptions. For example, its auditors
have informed First Palmetto, informally, that there will be a reduction in
auditing fees if First Palmetto ceases to be public, and it is clear that no SEC
legal counsel will be needed if First Palmetto no longer reports to the SEC.
Other estimates are more subjective, e.g. the lower printing and mailing costs
attributable to such reduction and the less complicated disclosure required by
First Palmetto's private status; the lower risk of liability that attends
private (as distinguished from public) company status expected to result; and
the reduction in direct miscellaneous clerical and other expenses (e.g., the
word processing, edgarizing, telephone and fax charges associated with SEC
filings) and elimination of the charges of brokers and banks in forwarding
materials to beneficial holders.
The estimates set forth above are just that--estimates; the actual savings
to be realized may be higher or lower than such estimates. It is expected that a
portion of the estimated savings will be realized in the current fiscal year
ending September 30, 2000.
In light of First Palmetto's size and resources, the Board does not believe
such direct and indirect costs are justified.
Management conducted an analysis of the options, risks and expenses
relating to remaining a public company, including the continued illiquidity of
the Common Stock.
In making this analysis, management considered the following alternative
strategies:
. A cash tender offer, but the Board believed it would not result in
shares being tendered by a sufficient number of record stockholders so
as to accomplish the going private objective and reducing recurring
costs. It was thought unlikely that many holders of small numbers of
shares would make the effort to tender their shares; and
. A purchase of shares in the open market. There is no established
trading market for the Common Stock; therefore, it would be highly
unlikely that shares could be acquired by First Palmetto from a
sufficient number of holders to accomplish the Board's objectives.
The Board has determined that the Reverse Stock Split Proposal is the most
expeditious and economical way of changing First Palmetto's status from that of
a reporting company to that of a more closely held, non-reporting company. The
Board has determined the reverse split ratio to be 1-for-125.
The Board also believes that it is in the best interests of First Palmetto
and the Bank to exchange shares of Preferred Stock for shares of Common Stock
which will not be converted into shares of new Common Stock.
. The issuance of Preferred Stock in lieu of the payment of cash for
such Common Stock interests allows First Palmetto and the Bank to
retain capital for other corporate purposes.
15
<PAGE>
. Many holders of Common Stock are customers of the Bank who appreciate
an ongoing equity interest in First Palmetto.
. Based on the Evaluation, the issuance of Preferred Stock in exchange
for fractional Common Stock interests should be tax free. See page __
"-- Material Federal Income Tax Consequences."
The reverse stock split is structured to be a "going private" transaction
as defined in Rule 13e-3 promulgated under the 1934 Act because it is intended
to, and, if completed, will likely terminate First Palmetto's reporting
requirements under the 1934 Act. In connection with the Reverse Stock Split
Proposal, First Palmetto has filed with the SEC a Schedule 13E-3 pursuant to
Rule 13e-3 under the 1934 Act.
The Reverse Stock Split Proposal, if approved, will have divergent effects
depending on whether you hold more, or fewer, than 125 shares of Common Stock in
a record account immediately prior to the reverse stock split.
Effect of Reverse Stock Split Proposal on First Palmetto Stockholders
Registered Stockholders with Fewer Than 125 Shares. If the Reverse Stock
Split Proposal is implemented and you are a stockholder holding fewer than 125
shares of Common Stock in a record account immediately prior to the reverse
stock split:
. You will not receive a fractional share of new Common Stock as a
result of the reverse split.
. You will receive one share of Preferred Stock for each share of Common
Stock.
. After the reverse split, you will have no further interest in the new
Common Stock, and as a holder of Preferred Stock, you will no longer
be entitled to vote, except as required by Delaware law. You will be
entitled to receive dividends, if and when declared. No dividend may
be paid on the new Common Stock unless an equivalent dividend is paid
concurrently on the Preferred Stock. See page __ "-- Description of
Preferred Stock."
. You will not have to pay any service charges or brokerage commissions
in connection with the reverse stock split.
. As soon as practicable after the Effective Date, you will receive
Preferred Stock for the Common Stock you held in your record account
immediately prior to the reverse split in accordance with the
procedures described below.
* If you hold stock certificate(s) representing your shares, you
will receive a transmittal letter from First Palmetto as soon as
practicable after the Effective Date. The letter of transmittal
will contain instructions on how to surrender your existing
Common Stock certificate(s) for your Preferred Stock. You will
not receive your Preferred Stock until you surrender your
outstanding certificate(s) in accordance with the letter of
transmittal. Please do not send your certificates until you
----------------------------------------------
receive your letter of transmittal.
----------------------------------
Registered Stockholders With 125 or More Shares. If you are a registered
stockholder with 125 or more shares of Common Stock in your record account as of
the Effective Date, we will convert your shares into one-one hundred and twenty-
fifth (1/125) of the number of shares you held immediately prior to the reverse
split. For example, if you are a registered owner of 1,250 shares of Common
Stock immediately prior to the reverse split, your shares will be converted to
10 shares of new Common Stock in the reverse split.
Beneficial Owners of First Palmetto Stock. Nominees (such as a bank or
broker) may have required procedures, and stockholders holding Common Stock in
street name should contact their nominees to determine how they will be affected
by the reverse stock split.
NOTE: If you are a beneficial owner of fewer than 125 shares of Common Stock and
want to have your shares exchanged for Preferred Stock in the reverse stock
split, you should instruct your nominee to transfer
16
<PAGE>
your shares into a record account in your name in a timely manner so that you
will be considered a holder of record immediately prior to the reverse split.
Financial Effect of Reverse Stock Split
The reverse stock split and the expenditure of approximately $50,000 for
professional fees and other expenses related to the Transaction are not expected
to have any material adverse effect on First Palmetto's capitalization,
liquidity, results of operations or cash flow. These expenditures have been
estimated as follows: fees and expenses of legal counsel - $30,000; fees and
expenses of RP Financial - $8,000; fees and expenses of accountants - $5,000;
printing and postage - $5,000; filing fees - $1,000; miscellaneous -
$1,000.
The following pro forma financial information presents the effect on First
Palmetto's capitalization of the reverse stock split. The unaudited pro forma
data reflect the Transaction as if it occurred on September 30, 1999. The
unaudited pro forma data is not necessarily indicative of what First Palmetto's
financial position would have been if the reverse stock split had been effected
on the date indicated, or will be in the future.
The unaudited pro forma data should be read in conjunction with the
historical financial statements and accompanying footnotes of First Palmetto.
<TABLE>
<CAPTION>
September 30, 1999
-------------------------------------------
Reverse Stock
As Reported Split Pro Forma
----------- ------------- ---------
(In thousands, except share and per share data)
<S> <C> <C> <C>
LIABILITIES
- -----------
Deposits.................................................. $ 361,764 $ -- $ 361,764
FHLB advance.............................................. 83,000 -- 83,000
Accrued expenses and other liabilities.................... 2,756 -- 2,756
--------- ---------- ---------
Total liabilities................................ 447,520 -- 447,520
--------- ---------- ---------
STOCKHOLDERS' EQUITY
- --------------------
Preferred stock, at par................................... -- -- --
Common stock, at par...................................... 8 -- 8
Additional paid-in capital................................ 6,979 -- 6,979
Retained earnings, substantially restricted............... 21,869 -- 21,869
Treasury stock, at cost................................... (625) -- (625)
Total stockholders' equity...................... 28,321 -- 28,321
--------- ---------- ---------
TOTAL..................................................... $ 475,521 $ -- $ 475,521
========= ========== =========
Number of preferred shares outstanding.................... -- -- 34,135
Book value per preferred share........................... -- -- $ 39.65
Number of common shares outstanding....................... 712,010 -- 5,423
Book value per common share............................... $ 39.65 -- $4,956.25
Capital ratios:
Tier 1 capital (to total assets)...................... 5.68% -- 5.68%
Tier 1 capital (to risk-weighted assets).............. 9.20% -- 9.20%
Total capital (to risk-weighted assets)............... 10.46% -- 10.46%
</TABLE>
17
<PAGE>
Conversion to Preferred Stock
In order to reduce the number of holders of record of Common Stock to below
300, First Palmetto will issue Preferred Stock for shares owned by registered
stockholders who would hold less than one share in a record account after the
reverse stock split. If stockholders approve the Reverse Stock Split Proposal at
the Annual Meeting and the reverse stock split is completed, First Palmetto will
issue shares of Preferred Stock for such Common Stock on a one-for-one basis.
Under the Charter, the First Palmetto Board of Directors is authorized to
issue up to 500,000 shares of serial preferred stock and to fix the powers,
designations, preferences and relative, participating, optional or other special
rights of such shares and the qualifications, limitations and restrictions
thereof. The serial preferred stock may rank prior to the Common Stock as to
dividend rights, liquidation preferences or both and may have full or limited
voting rights.
If the Reverse Stock Split Proposal is approved at the Annual Meeting, the
Board will issue shares of Preferred Stock with the following rights to holders
of fractional share interests:
1. The Preferred Stock will be nonvoting, except as required by Delaware
law.
2. The Preferred Stock will be entitled to receive dividends. No dividend
may be paid on the new Common Stock unless an equivalent dividend is paid
concurrently on the Preferred Stock. Unless otherwise determined by the Board,
an equivalent dividend will be based on the 1-for-125 reverse stock split ratio.
For example, if the Board declares and pays a dividend of $1.00 per share of
Preferred Stock, an equivalent new Common Stock dividend would be $125.00 per
share.
3. In the unlikely event of a liquidation, the Preferred Stock would have
a preference over the Common Stock.
4. The Preferred Stock will be redeemable by First Palmetto at the option
of First Palmetto, following a two-year period subsequent to the Effective Date.
The redemption price will be the greater of the current fair market value of the
Preferred Stock as determined by the Board of Directors or 115% of a current
independent appraisal of such value. First Palmetto expects to obtain such an
appraisal on an annual basis.
5. In the event of a negotiated acquisition of First Palmetto, the
Preferred Stock will be valued by the Board on the same basis as the Common
Stock, subject to the 1-for-125 reverse stock split ratio.
6. Prior to any transfer of the Preferred Stock which would result in a
greater number of registered holders thereof, First Palmetto will have a right
of first refusal to purchase such shares at the greater of the current fair
market value of the Preferred Stock as determined by the Board of Directors or
the most recent appraisal of such value. First Palmetto expects to obtain such
an appraisal on an annual basis.
The following table compares the material differences between the Old
Common Stock, New Common Stock and Preferred Stock.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Liquidation
Security Voting Rights? Dividends? Preference? Redeemable? Transferable?
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Old Common Stock 1 vote per share Yes No No Yes
- --------------------------------------------------------------------------------------------------------
New Common Stock 1 vote per share Yes No No Yes
- --------------------------------------------------------------------------------------------------------
Right of
Preferred Stock non-voting Yes Yes Yes First Refusal
- --------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
Termination of 1934 Act Registration
The Reverse Stock Split Proposal will affect the public registration of the
Common Stock with the SEC under the 1934 Act, as the First Palmetto intends to
apply for such termination as soon as practicable after approval by
stockholders.
The Common Stock is currently registered under the 1934 Act. Such
registration may be terminated by First Palmetto if the Common Stock is no
longer held by 300 or more stockholders of record. Termination of registration
of the Common Stock under the 1934 Act would substantially reduce the
information required to be furnished by First Palmetto to its stockholders and
to the SEC and would make certain provisions of the 1934 Act, such as the
short-swing profit recovery provisions of Section 16(b) of the 1934 Act, proxy
statement disclosure in connection with stockholders meetings and the related
requirement of an annual report to stockholders, no longer applicable to First
Palmetto. Accordingly, for a total expenditure by First Palmetto of
approximately $25,000, First Palmetto estimates it will eliminate costs and
expenses associated with continuance of the 1934 Act registration, which First
Palmetto estimates approximately $50,000 on an annual basis.
One related benefit from the termination of registration of the Common
Stock under the 1934 Act will be the retention of certain proprietary
information of First Palmetto. First Palmetto's 1934 Act filings can be readily
analyzed by First Palmetto's competitors.
With respect to the executive officers and directors of First Palmetto, in
the event the registration of the Common Stock is terminated under the 1934
Act: (a) executive officers, directors and other affiliates would no longer be
subject to many of the reporting requirements and restrictions of the 1934 Act,
including without limitation the reporting and short-swing profit provisions of
Section 16, and (b) executive officers, directors and other affiliates of First
Palmetto may be deprived of the ability to dispose of shares of Common Stock
pursuant to Rule 144 under the Securities Act of 1933 (the "1933 Act").
Upon termination of 1934 Act registration, First Palmetto will continue to
be subject to the general anti - fraud provisions of federal and applicable
state securities laws.
In the event that First Palmetto's Preferred Shares are eventually held by
more than 500 shareholders, First Palmetto will register the Preferred Stock
under Section 12(g) of the Securities Exchange Act of 1934. It is anticipated
that the number of Preferred shareholders will be significantly less than 500
holders following the reverse stock split.
Consequences Under Federal Securities Laws
First Palmetto has not filed with the SEC a registration statement under
the 1933 Act for the registration of the new Common Stock and the Preferred
Stock to be issued and exchanged pursuant to the Reverse Stock Split Proposal.
Instead, the new Common Stock and the Preferred Stock will be issued in reliance
on exemptions contained in Section 3(a)(9) and Rule 145(a)(1) under the 1933
Act. Shares of new Common Stock and Preferred Stock received by First Palmetto
stockholders upon consummation of the reverse stock split are expected to be
freely transferable under the 1933 Act by those stockholders of First Palmetto
not deemed to be "affiliates" of First Palmetto. Shares of new Common Stock and
Preferred Stock acquired by persons who are "affiliates" of First Palmetto will
be subject to the resale restrictions of Rule 144 under the 1933 Act. Affiliates
are generally defined as persons who control, are controlled by, or are under
common control with First Palmetto at the time of the Annual Meeting (generally
executive officers and directors).
Under paragraph (e) of Rule 144, each affiliate of First Palmetto, together
with any other person whose sales are required to be aggregated with those of
the affiliate under Rule 144, would be able to sell in the public market,
without registration, a number of shares not to exceed, in any three-month
period, the greater of (i) 1% of the outstanding shares or (ii) the average
weekly trading volume in such shares during the preceding four calendar weeks.
Pursuant to paragraph (f) of Rule 144, the shares are required to be sold in
"brokers' transactions," as defined in paragraph (g) of Rule 144, or in
transactions directly with a "market maker," as defined in Section 3(a)(38) of
the 1934 Act, as well as comply with certain other manner of sale requirements
set forth in paragraph (f). Pursuant to paragraph (c) of Rule 144, the ability
of affiliates to resell shares of stock received in the reverse
19
<PAGE>
stock split under Rule 144 will be subject to First Palmetto's having satisfied
certain 1934 Act reporting requirements for specified periods prior to the time
of sale. However, if the Reserve Stock Split Proposal is approved, First
Palmetto will terminate the Common Stock's 1934 Act registration as soon as
practicable thereafter and will not register the Preferred Stock under the 1934
Act. Therefore, the ability of affiliates to dispose of shares pursuant to Rule
144 may be deprived. See page __ "-- Termination of 1934 Act Registration of
Common Stock." Affiliates also would be permitted to resell the stock received
in reverse stock split pursuant to an effective registration statement under the
1933 Act or an available exemption from the 1933 Act registration
requirements.
Effect on Market for Shares
First Palmetto's Charter currently authorizes the issuance of 1,500,000
shares of Common Stock and 500,000 shares of serial preferred stock. The Reverse
Stock Split Proposal, if approved and effected, will reduce significantly the
number of holders of Common Stock and the number of outstanding shares of Common
Stock. First Palmetto believes that completion of the Reverse Stock Split and
deregistration of the Common Stock under the 1934 Act will cause the public
market for shares of new Common Stock to be eliminated.
First Palmetto has no current plans to issue additional shares of stock,
but First Palmetto reserves the right to do so at any time and from time to time
at such prices and on such terms as the Board of Directors determines to be in
the best interests of First Palmetto and its then stockholders. Persons who
continue as stockholders following implementation of the Reverse Stock Split
Proposal will not have any preemptive or other preferential rights to purchase
any of First Palmetto's stock that may be issued by First Palmetto in the
future, unless such rights are specifically granted to the stockholders.
Potential Detriments of Reverse Stock Split Proposal to Stockholders; Accretion
in Ownership and Control of Certain Stockholders
Potential detriments to stockholders who remain as holders of new Common
Stock and Preferred Stock if the reverse stock split is effected include
decreased access to information and decreased liquidity. If the Reverse Stock
Split Proposal is effected, First Palmetto intends to terminate the registration
of its Common Stock under the 1934 Act. As a result of such termination, First
Palmetto will no longer be subject to the periodic reporting requirements and
the proxy rules of the 1934 Act. The liquidity and market value of the shares of
Common Stock held by unaffiliated stockholders may be adversely affected by the
reverse stock split and by termination of the registration of the Common Stock
under the 1934 Act.
The Board of Directors did not retain either an investment bank or other
financial adviser to render a report or opinion with respect to the fairness of
the Reverse Stock Split Proposal to First Palmetto or its stockholders or an
unaffiliated representative to represent the unaffiliated stockholders of First
Palmetto in negotiating the terms of the Reverse Stock Split Proposal. The Board
of Directors considered the Evaluation relating to the value of the Preferred
Stock to be issued to stockholders holding fewer than 125 shares of Common Stock
in any one record account. See page __"-- Evaluation of RP Financial."
Stock Certificates
If First Palmetto's stockholders approve the Reverse Stock Split Proposal,
it is the present intention of First Palmetto to file a Certificate of Amendment
to its Restated Certificate of Incorporation with the Secretary of State of the
State of Delaware. The Reverse Stock Split Proposal will become effective on the
date of that filing. Assuming stockholder approval of the Proposal is obtained,
First Palmetto plans to file the Certificate of Amendment at a time to be
determined by the officers of First Palmetto, expected to be as promptly as
possible, but in any event not later than ____________. First Palmetto Savings
Bank has been appointed exchange agent (the "Transfer Agent") to carry out the
exchange of certificates for new Common Stock and/or Preferred Stock.
On the Effective Date, each 125 shares of Common Stock will automatically
be combined and changed into one share of new Common Stock, and shares of
Preferred Stock will be issued in exchange for Common Stock interests of less
than 125 shares. No additional action on the part of First Palmetto or any
stockholder will be required in order to effect the reverse stock split.
Stockholders of record will be requested to exchange their certificates
representing shares of Common Stock held prior to the reverse stock split for
certificates representing
20
<PAGE>
shares of new Common Stock and Preferred Stock issued as a result of the reverse
stock split. Such stockholders will be furnished the necessary materials and
instructions to effect such exchange promptly following the Effective Date.
Certificates representing shares of Common Stock subsequently presented for
transfer will not be transferred on the books and records of First Palmetto
until the certificates representing the shares of Common Stock have been
exchanged for certificates representing shares of new Common Stock and Preferred
Stock. Stockholders should not submit any certificates until requested to do so.
------------------------------------------------------------------------
In the event any certificate representing shares of Common Stock is not
presented for exchange upon request by the Company, any dividends that may be
declared after the Effective Date with respect to the new Common Stock or
Preferred Stock represented by such certificate will be withheld by First
Palmetto until such certificate has been properly presented for exchange, at
which time all such withheld dividends which have not yet been paid to the
public official pursuant to relevant abandoned property laws will be paid to the
holder thereof or his designee, without interest.
As described above, stockholders with share certificates will receive a
letter of transmittal after the reverse stock split is completed. These
stockholders must complete and sign the letter of transmittal and return it with
their stock certificate(s) to the Transfer Agent before they can receive new
Common Stock and/or Preferred Stock for those shares.
No service charges will be payable by stockholders in connection with the
exchange of certificates or the issuance of new Common Stock and Preferred
Stock, all expenses of which will be borne by First Palmetto.
Material Federal Income Tax Consequences
We summarize below the material federal income tax consequences to First
Palmetto and stockholders resulting from the Reverse Stock Split Proposal. This
summary is based on existing U.S. federal income tax law, which may change, even
retroactively. This summary is not binding on the IRS. There can be no assurance
and none is given that the IRS or the courts will not adopt a position that is
contrary to the statements contained in this summary. This summary does not
discuss all aspects of federal income taxation which may be important to you in
light of your individual circumstances. Many stockholders may be subject to
special tax rules. In addition, this summary does not discuss any state, local,
foreign, or other tax considerations.
This summary assumes that you are a one of the following: (1) a citizen or
resident of the United States; (2) a corporation or other entity taxable as a
corporation created or organized under U.S. law (federal or state); (3) an
estate the income of which is subject to U.S. federal income taxation regardless
of its sources; (4) a trust if a U.S. court is able to exercise primary
supervision over administration of the trust and one or more U.S. persons have
authority to control all substantial decisions of the trust; or (5) any other
person whose worldwide income and gain is otherwise subject to U.S. federal
income taxation on a net basis. This summary also assumes that you have held and
will continue to hold your shares as capital assets for investment purposes
under the Internal Revenue Code of 1986, as amended.
You should consult your tax advisor as to the particular federal, state,
------------------------------------------------------------------------
local, foreign, and other tax consequences, in light of your specific
- ---------------------------------------------------------------------
circumstances.
- -------------
We believe that the Reverse Stock Split Proposal should be treated as a
tax-free "recapitalization" for federal income tax purposes. This should result
in no material federal income tax consequences to First Palmetto.
If you continue to hold new Common Stock after the reverse stock split, you
should not recognize any gain or loss in the reverse stock split, and you should
have the same adjusted tax basis and holding period in your new Common Stock as
you had in the Common Stock immediately prior to the reverse stock split.
If you receive Preferred Stock in the reverse stock split, and based on the
Evaluation as to the value of the Preferred Stock in relation to the Common
Stock fractional interests, you should not recognize any gain or loss in the
reverse stock split, and you should have the same adjusted tax basis and holding
period in the Preferred Stock as you had in the Common Stock immediately prior
to the reverse stock split. See page __ "-- Evaluation of RP Financial." If you
receive both new Common Stock and Preferred Stock in the reverse stock split,
then the adjusted tax basis you had in the Common Stock immediately prior to the
reverse stock split should be allocated between the
21
<PAGE>
new Common Stock and Preferred Stock in proportion to their respective fair
market values, which should reflect the 1-to-125 reverse stock split ratio.
If you receive both new Common Stock and Preferred Stock, then the
Preferred Stock you receive may constitute "Section 306" stock. In general, IRS
rulings have stated that stock that is redeemable by the issuing corporation for
a fixed price can be Section 306 stock. We will have the right to redeem the
Preferred Stock for the greater of the fair market value of the Preferred Stock
as determined by the Board of Directors or 115% of an independent appraisal of
the fair market value of the Preferred Stock. Because the redemption price of
the Preferred Stock is based on fair market value rather than a fixed price, we
believe that the Preferred Stock should not be classified as Section 306 stock.
The IRS and the courts, however, are not bound by our conclusion and may
disagree with us.
If we exercise our right to redeem the Preferred Stock and the Preferred
Stock is Section 306 stock, then to the extent you recognize gain or loss on the
redemption, such gain or loss will be ordinary rather than capital. If you sell
or otherwise dispose of your Preferred Stock and the Preferred Stock is Section
306 stock, then to the extent you realize gain on the disposition, such gain
will be ordinary rather than capital, and to the extent you realize loss on the
disposition, such loss will not be recognized. You are strongly urged to consult
with your tax advisor as to the federal tax consequences of holding Section 306
stock.
Appraisal Rights
No appraisal rights are available under the Delaware General Corporation
Law or under the Charter or Bylaws of First Palmetto to any stockholder who
dissents from the proposal to approve the Reverse Stock Split Proposal. There
may exist other rights or actions under state law for stockholders who are
aggrieved by reverse stock splits generally. Although the nature and extent of
such rights or actions are uncertain and may vary depending upon the facts or
circumstances, stockholder challenges to corporate action under state law in
general are related to the fiduciary responsibilities of corporate officers and
directors and to the fairness of corporate transactions. In addition,
stockholder challenges under federal law in general are related to the adequacy
of disclosure provided to stockholders.
Reservation of Rights
Although the Board of Directors requests stockholder approval of the
proposed amendment to the Restated Certificate of Incorporation, the Board
reserves the right to decide, in its discretion, to withdraw the Reverse Stock
Split Proposal from the agenda of the Annual Meeting prior to any stockholder
vote thereon or to abandon the Reverse Stock Split Proposal after such vote
before the Effective Date even if the Proposal is approved. Although the Board
presently believes that the Proposal is in the best interests of First Palmetto
and its stockholders, and thus has recommended a vote for the Proposal, the
Board nonetheless believes that it is prudent to recognize that, between the
date of this Proxy Statement and the Effective Date, factual circumstances could
possibly change such that it might not be appropriate or desirable to effect the
Reverse Stock Split Proposal at that time. If the Board decides to withdraw the
Reverse Stock Split Proposal from the agenda of the Annual Meeting, the Board
will notify the stockholders of such decision promptly by mail and by
announcement at the Annual Meeting. If the Board decides to abandon the Reverse
Stock Split Proposal after the Annual Meeting and before the Effective Date, the
Board will notify the stockholders of such decision promptly by mail.
The Board recommends that you vote FOR the Reverse Stock Split Proposal.
-----------------------------------------------------------------------
Proxies solicited by the Board of Directors will be voted FOR this Proposal,
unless you specify otherwise in your proxy.
22
<PAGE>
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Board of Directors expects to appoint KPMG LLP to audit First
Palmetto's financial statements for the fiscal year ending September 30, 2000.
KPMG LLP served as First Palmetto's independent auditors for the year ended
September 30, 1999 and has served as First Palmetto's independent auditors since
1991. A representative of KPMG LLP is expected to be present at the Annual
Meeting. He will be available to respond to appropriate questions and will have
the opportunity to make a statement if he desires to do so.
- --------------------------------------------------------------------------------
SOLICITATION INFORMATION
- --------------------------------------------------------------------------------
The cost of soliciting proxies in the form enclosed herewith will be borne
by First Palmetto. In addition to solicitation of proxies by mail, First
Palmetto, through its directors, officers and regular employees, may also
solicit proxies personally or by telegraph or telephone without additional
compensation. First Palmetto will request persons, firms and corporations
holding shares in their names or in the names of their nominees, which are
beneficially owned by others, to send proxy materials to and obtain proxies from
such beneficial owners and will reimburse such holders for their reasonable
expenses in doing so.
- --------------------------------------------------------------------------------
STOCKHOLDER PROPOSALS
- --------------------------------------------------------------------------------
If Proposal II is not approved at the Annual Meeting or the Reverse Stock
Split Proposal is not implemented prior to next year's Annual Meeting of
Stockholders, any proposal intended to be presented by any stockholder for
action at next year's Annual Meeting must be received by the Secretary of First
Palmetto at First Palmetto's main office, 407 DeKalb Street, Camden, South
Carolina 29020 not later than __________ in order for the proposal to be
considered for inclusion in the proxy materials relating to that Annual Meeting.
First Palmetto's Certificate of Incorporation provides that due notice of
business to be bought before an annual meeting by a stockholder must be
delivered to the principal executive offices of First Palmetto neither fewer
than 30 nor more than 90 days prior to the meeting, unless notice or prior
public disclosure of the date of the meeting occurs fewer than 45 days prior to
the date of the meeting, in which event the Certificate of Incorporation
provides that due notice of business to be brought before the meeting by a
stockholder must be delivered not later than the close of business on the 15th
day following the day on which notice of the day of the meeting was mailed or
public disclosure was made. To be timely under the Certificate of Incorporation,
a stockholder's proposal for new business in connection with next year's Annual
Meeting of Stockholders (to be held on or about _______ __, 2000) must be
delivered on or before __________ __, 2000 (if 45 days' notice or prior public
disclosure is given). Nothing in this paragraph shall be deemed to require First
Palmetto to include in its proxy materials any stockholder proposal which does
not meet all of the requirements for inclusion established by the Securities and
Exchange Commission or First Palmetto's Certificate of Incorporation or Bylaws
in effect at the time such proposal is received.
23
<PAGE>
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
Financial Information
A copy of First Palmetto's Annual Report to Stockholders for fiscal 1999
accompanies this Proxy Statement. First Palmetto has filed an Annual Report on
Form 10-K (File No. 0-18932) for the fiscal year ended September 30, 1999 with
the SEC (the "Form 10-K"). Stockholders may obtain, free of charge, a copy of
the Form 10-K by writing to the Secretary of First Palmetto at Post Office Box
861, Camden, South Carolina 29020. The Form 10-K is incorporated by reference in
this Proxy Statement.
Available Information
First Palmetto is subject to the information requirements of the 1934 Act
and in accordance therewith files reports, proxy statements and other
information with the SEC. Such reports, proxy statements and other information
can be inspected and copied at the public reference facilities of the SEC at
Room 1024, 450 Fifth Street, N.W., Judiciary Plaza, Washington, D.C. 20549 and
at the regional offices of the SEC located at 7 World Trade Center, 13th Floor,
Suite 1300, New York, New York 10048 and Suite 1400, Citicorp Center, 14th
Floor, 500 West Madison Street, Chicago, Illinois 60661. Copies of such material
can also be obtained at prescribed rates by writing to the Public Reference
Section of the SEC at 450 Fifth Street, N.W., Judiciary Plaza, Washington, D.C.
20549. In addition, such reports, proxy statements and other information are
available from the Edgar filings obtained through the SEC Internet Website
(http://www.sec.gov.)
BY ORDER OF THE BOARD OF DIRECTORS
DARLENE H. LOVE
SECRETARY
Camden, South Carolina
____________ __, 2000
24
<PAGE>
Appendix B
RP FINANCIAL, LC.
- ---------------------------------------
Financial Services Industry Consultants
January 3, 2000
Board of Directors
First Palmetto Financial Corporation
407 DeKalb Street
Camden, South Carolina 29020
Members of the Board of Directors:
At your request, we have completed and hereby provide an independent
analysis and evaluation ("Evaluation") of the estimated fair market value of the
Preferred Stock of First Palmetto Financial Corporation ("First Palmetto"),
which is to be issued to holders of First Palmetto Common Stock in lieu of
fractional share interests resulting from a reverse stock split. All capitalized
terms not otherwise defined in this letter have the meanings given such terms in
the Proxy Statement authorized by the Board of Directors of First Palmetto,
which sets forth a proposal to amend First Palmetto's Restated Certificate of
Incorporation to effect a 1-for-125 reverse stock split of the Common Stock.
RP Financial, LC.
- -----------------
RP Financial, LC. of Arlington, Virginia, is a financial consulting firm
that, among other things, specializes in the fair market valuation of the equity
and debt securities issued by financial institutions and their subsidiary
companies. RP Financial has been approved as a qualified financial institution
appraisal firm by the Office of General Counsel of the Office of Thrift
Supervision ("OTS"), the Federal Deposit Insurance Corporation ("FDIC"), and
numerous state banking agencies. The principals and staff of RP Financial have
served as fair market appraisers and consultants for over 500 financial
institutions pursuant to initial and secondary offerings (including rights
offerings), business combinations, mutual-to-stock conversions, mutual holding
company formations, ESOPs and stock option plans, audited financial statement
disclosure and other purposes.
Neither RP Financial nor its employees have any present or contemplated
future interest in the Common Stock or Preferred Stock of First Palmetto or its
principals or any other interest that might tend to prevent RP Financial in
making a fair and unbiased evaluation.
Definition of Fair Market Value
- -------------------------------
Throughout this letter, the terms "market value" and "fair market value"
are considered to represent the value at which a willing buyer and willing
seller, both being informed of the relevant facts about the business, could
reasonably conduct a transaction, neither party acting under any compulsion to
do so.
Among other factors, our Evaluation takes into consideration all elements
of appraisal listed in Internal Revenue Service Ruling 59-60, which provides
guidelines for the appraisal of closely held stocks. Revenue ruling 59-60 states
that all relevant factors should be taken into consideration, including the
following:
- --------------------------------------------------------------------------------
Washington Headquarters
Rosslyn Center
1700 North Moore Street, Suite 2210 Telephone: (703) 528-1700
Arlington, VA 22209 Fax No: (703) 528-1788
<PAGE>
RP Financial, LC.
Board of Directors
January 3, 2000
Page 2
(1) The nature of the business and the history of the
enterprise from its inception;
(2) The economic outlook in general and the condition
and outlook of the specific industry in particular;
(3) The book value of the stock and the financial
condition of the business;
(4) The earning capacity of the company;
(5) The dividend-paying capacity of the company;
(6) Whether or not the enterprise has goodwill or
other intangible value;
(7) Sales of the stock and the size of the block of
stock to be valued; and,
(8) The market price of stocks of corporations engaged
in the same or similar line of business having their
stocks actively traded in a free and open market,
either on an exchange or over the counter.
Limiting Factors and Considerations
- -----------------------------------
Our valuation is not intended, and must not be construed, as a
recommendation of any kind as to the advisability of purchasing shares of the
Common Stock or the Preferred Stock. Moreover, because such valuation is
necessarily based upon estimates and projections of a number of matters, all of
which are subject to change from time to time, no assurance can be given that
persons who purchase shares of Common Stock or Preferred Stock will thereafter
be able to buy or sell such shares at prices related to the foregoing valuation.
RP Financial's valuation was determined based on the financial condition
and operations of First Palmetto, as of September 30, 1999.
RP Financial is not a seller of securities within the meaning of any
federal and state securities laws and any report prepared by RP Financial shall
not be used as an offer or solicitation with respect to the purchase or sale of
any securities. RP Financial maintains a policy which prohibits RP Financial,
its principals or employees from purchasing stock of its client institutions.
Description and Purpose of Transaction
- --------------------------------------
The Board of Directors is proposing to amend First Palmetto's Restated
Certificate of Incorporation to effect a 1-for-125 reverse stock split of the
Common Stock, and to issue shares of Preferred Stock in lieu of fractional share
interests to any First Palmetto stockholder who, following the reverse split,
would hold less than one share of Common Stock in any discrete account (the
"Reverse Stock Split Proposal"). Accordingly, if the Reverse Stock Split
Proposal is approved, all registered shareholders on the Effective Date will
receive 1 share of new Common Stock for every 125 shares of Common Stock held of
record in their accounts at that time. Any registered stockholder who holds
fewer than 125 shares of Common Stock in a record account will receive one share
of Preferred Stock for each share of Common Stock instead of a fractional share.
All fractional shares in a record account that exceed 125 shares of Common Stock
will also be converted into one share of Preferred Stock for each share of
Common Stock instead of a fractional share. For example, if a stockholder holds
150 shares of Common Stock in a record account as of the Effective Date, the
stockholder holder would
<PAGE>
RP Financial, LC.
Board of Directors
January 3, 2000
Page 3
receive 1 share of Common Stock and 25 shares of Preferred Stock after the
reverse stock split instead of 1.2 shares of Common Stock.
The Board of Directors of First Palmetto has stated that the purpose of the
Reverse Stock Split is to reduce the number of stockholders of record of Common
Stock to fewer than 300 persons in order to relieve First Palmetto of the
administrative burden and cost and competitive disadvantages associated with
filing reports and otherwise complying with the requirements of the Security and
Exchange Commission ("SEC") under the 1934 Act, by deregistering the Common
Stock under the 1934 Act. If the Reverse Stock Split Proposal is effected, the
Board of Directors believes that, based on First Palmetto's stockholder records,
there will be fewer than 300 stockholders of record of new Common Stock. In
connection with the deregistering of its Common Stock under the 1934 Act, First
Palmetto plans to become a privately held company.
First Palmetto incurs direct and indirect costs associated with the SEC's
filing and reporting requirements imposed on public companies. First Palmetto
estimates that termination of the registration of Common Stock under the 1934
Act will save First Palmetto approximately $50,000 per year in legal, accounting
and other expenses. First Palmetto also incurs indirect costs as a result of,
among other things, the executive time expended to prepare and review such
filings. The Board believes that the disadvantages of having First Palmetto
continue to be a 1934 Act registrant outweigh any advantages. The Board has no
present intention to raise capital through sales of securities in a public
offering in the future or to acquire other business entities using stock as
consideration for any such acquisition. Accordingly, First Palmetto is not
likely to make use of any advantage that First Palmetto's status as a reporting
company may offer.
Rights of Preferred Stockholders
- --------------------------------
As described in the Proxy materials, the Preferred Stock issued by First
Palmetto will have the following rights:
1. The Preferred stock will be non-voting, except as required by
Delaware law.
2. The Preferred Stock will be entitled to receive dividends. No dividend
may be paid on the new Common Stock unless an equivalent dividend is
paid concurrently on the Preferred Stock. Unless otherwise determined by
the Board, an equivalent dividend will be based on the 1-for-125
reverse stock split ratio.
3. In the unlikely event of a liquidation, the Preferred Stock would
have a preference over the Common Stock.
4. The Preferred Stock will be redeemable by First Palmetto at the option
of First Palmetto, following a two year period subsequent to the
Effective Date. The redemption price will be the greater of the current
fair market value of the Preferred Stock as determined by the Board of
Directors or 115 percent of a current independent appraisal of such
value.
<PAGE>
RP Financial, LC.
Board of Directors
January 3, 2000
Page 4
5. In the event of a negotiated acquisition of First Palmetto, the
Preferred Stock will be valued by the Board on the same basis as the
Common Stock, subject to the 1-for-125 reverse stock split ratio.
6. Prior to any transfer of the Preferred Stock which would result in a
greater number of registered holders thereof, First Palmetto will have a
right of first refusal to purchase such shares at the greater of the
current fair market value of the Preferred Stock as determined by the
Board of Directors or the most recent appraisal of such value. First
Palmetto expects to obtain such an appraisal on an annual basis.
Valuation of Common Stock
- -------------------------
RP Financial prepared an independent appraisal of the Common Stock ("Common
Stock Appraisal"), dated December 17, 1999, which concluded with a fair market
value of the Common Stock of $75.00 per share. The Common Stock Appraisal is
hereby incorporated by reference. The valuation approaches, methodologies and
conclusions are fully described in the Common Stock Appraisal.
Analysis and Evaluation of Preferred Stock
- ------------------------------------------
RP Financial concluded that as of December 17, 1999, the estimated value of
the Common Stock was $75.00 per share. RP Financial considered a number of
factors described in more detail below, in its analysis and evaluation of the
Preferred Stock. Based on these factors, RP Financial concluded that the fair
market value of the Preferred Stock is substantially equivalent to $75.00 per
share. In reaching our conclusion that the fair market values of the Preferred
Stock and Common Stock were substantially equivalent, we took into consideration
the comparative rights of the Preferred Stock and the Common Stock.
Our assessment of the comparative rights of the Preferred Stock and Common
Stock took into consideration the loss of voting rights by the holders of the
Preferred Stock and the ability of First Palmetto to redeem the Preferred Stock
at its option, both of which were considered to be negative valuation
considerations for the Preferred Stock relative to the Common Stock. It is our
view that the negative valuation considerations associated with the loss of
voting rights and the redemption feature were offset by other positive valuation
considerations associated with the Preferred Stock, which included the dividend
preference and liquidation preference of the Preferred Stock, the probability of
a more liquid trading market for the Preferred Stock and the premium price to be
received by the holders of the Preferred Stock in the event of a redemption.
It is anticipated that the Preferred Stock will have a more liquid trading
market relative to the Common Stock, since the 1-for-125 reserve stock split of
the Common Stock will result in fewer shares of Common Stock outstanding in
comparison to the number of shares of Preferred Stock that will be outstanding.
Additionally, the reverse split adjusted price of the Common Stock will be
significantly higher than price of the Preferred Stock, which we also believe
will result in a relatively more liquid trading market for the Preferred Stock.
In the event the Preferred Stock is redeemed by First Palmetto, the
redemption price will be the greater of the current fair market value of the
Preferred Stock as determined by the
<PAGE>
RP Financial, LC.
Board of Directors
January 3, 2000
Page 5
Board of Directors or 115 percent of a current independent appraisal of such
value. The premium associated with the redemption price is believed to
adequately compensate the holders of the Preferred Stock at the time of
redemption for foregoing potential increases in value. Our conclusion in this
regard considered historical control premium data for thrift acquisitions
announced in 1998 and 1999, which indicate that the average control premium paid
for thrift acquisitions announced in 1998 and year-to-date 1999 equaled 24.0
percent and 39.0 percent, respectively, based on the closing stock prices of the
acquired institutions one day prior to the announcement date of their
acquisitions (see Exhibits I and II). We concluded that the 15 percent premium
upon redemption reasonably reflects the uncertainty of future events, yet still
compensates the Preferred Stock holders adequately for foregoing potential
increases in value, given that there is no certainty as to the timing or
probability that a negotiated acquisition of First Palmetto would be completed
following the redemption.
Overall, the Preferred Stock has the same dividend and price under a merger
as the Common Stock. The downward valuation adjustment relative to the Common
Stock for the lack of voting rights and redemption provision are substantially
and equally offset by the Preferred Stock's dividend preference, liquidation
preference, anticipated greater liquidity and premium on redemption. These
factors were all considered in RP Financial's conclusion that the Preferred
Stock has a fair market value substantially equivalent to the Common Stock.
Respectfully submitted,
RP FINANCIAL, LC.
/s/ RP Financial, LC.
<PAGE>
EXHIBITS
<PAGE>
RP Financial, LC.
LIST OF EXHIBITS
Exhibit
Number Description
------- -----------
I Thrift Acquisitions Announced in 1998
II Thrift Acquisitions Announced in 1999
<PAGE>
EXHIBIT I
Thrift Acquisitions Announced in 1998
<PAGE>
Exhibit I
Thrift Acquisitions Announced in 1998
<TABLE>
<CAPTION>
Price/ Book Price/ Earnings
Announcement Announcement
Announced Completion Buyer Name Seller Name (%) (x)
Date Date
<S> <C> <C> <C> <C> <C>
04/23/98 11/16/98 Ambanc Holding Co. Inc. AFSALA Bancorp Inc. 144.62 22.58
08/28/98 06/03/99 American General Corporation Standard Pacific Savings, FA NA NA
04/03/98 10/01/98 Astoria Financial Corporation Long Island Bancorp Inc. 299.09 32.11
02/25/98 09/30/98 BB&T Corporation Maryland Federal Bancorp Inc. 233.87 25.55
05/07/98 09/03/98 Blackhawk Bancorp, Inc. First Financial Bancorp Inc. 161.46 NM
02/27/98 06/26/98 Blue River Bancshares Shelby County Bancorp 136.28 18.95
09/29/98 03/31/99 Capital Bank Home Savings Bank of Siler City Inc. SSB 147.37 58.07
06/29/98 09/30/98 Carolina First Corporation Poinsett Financial Corporation 319.74 NM
05/29/98 09/30/98 Cecil Bancorp Inc. Columbian Bank, A FSB 159.60 21.19
05/07/98 08/03/98 Central Bancshares Inc. Pioneer Financial Corporation 220.46 15.18
10/28/98 03/29/99 Centura Banks Inc. First Coastal Bankshares Inc. 262.11 28.33
08/26/98 02/05/99 Centura Banks Inc. Scotland Bancorp Inc. 147.61 23.50
04/24/98 10/16/98 Charter One Financial Inc. CS Financial Corporation 251.83 28.18
06/15/98 11/30/98 Charter One Financial Inc. ALBANK Financial Corporation 257.80 23.06
10/12/98 02/26/99 Coal City Corporation Avondale Financial Corp. NM NM
02/12/98 07/31/98 Commercial Federal Corporation AmerUs Bank 193.12 13.74
03/09/98 08/14/98 Commercial Federal Corporation First Colorado Bancorp, Inc. 240.96 24.59
04/22/98 12/14/98 Community West Bancshares Palomar Savings & Loan Association 220.00 19.71
11/18/98 08/02/99 Crown Group Inc. Delaware First Financial Corporation 111.35 NM
12/16/98 05/21/99 Dime Bancorp Inc. Lakeview Financial Corp. 195.49 9.95
07/20/98 01/21/99 Dime Community Bancshares Inc. Financial Bancorp Inc. 246.50 24.40
03/20/98 08/31/98 Emclaire Financial Corp. Peoples Savings Financial Corporation 129.48 29.21
07/06/98 11/20/98 Enterprise Federal Bancorp Inc. Security Savings Holding Co. Inc. 165.67 22.00
09/09/98 04/30/99 FBOP Corporation Calumet Bancorp Inc. 115.36 11.47
09/28/98 03/19/99 Fidelity Financial of Ohio Inc. Glenway Financial Corp. NM NM
01/14/98 06/26/98 Fifth Third Bancorp CitFed Bancorp, Inc. 338.79 28.24
09/25/98 05/14/99 Fifth Third Bancorp Enterprise Federal Bancorp Inc. 283.92 34.31
01/05/98 06/19/98 Fifth Third Bancorp State Savings Company 338.73 27.33
05/18/98 09/30/98 First Charter Corporation HFNC Financial Corp. 142.07 18.62
08/17/98 04/13/99 First Federal Savings Bank of Siouxland Mid-Iowa Financial Corp. 194.05 19.48
12/07/98 04/02/99 First National Bank of Shelby First Carolina Federal Savings Bank 204.86 NM
07/09/98 12/18/98 First Source Bancorp Inc. Pulse Bancorp Inc. 221.15 18.18
08/13/98 12/31/98 First Western Bank Mitchell Bancorp 127.23 40.00
09/03/98 12/29/98 FirstCapital Bank SSB Liberty Savings Association NA NA
04/05/98 10/23/98 FirstMerit Corporation Security First Corporation 349.37 27.36
05/14/98 12/31/98 FLAG Financial Corporation The Brown Bank 203.32 53.02
06/25/98 12/31/98 German American Bancorp 1ST Bancorp 243.84 28.74
02/05/98 09/11/98 Golden State Bancorp Inc. First Nationwide Holdings NM NM
09/08/98 04/01/99 Greater Community Bancorp First Savings Bancorp of Little Falls 227.77 26.20
03/31/98 08/21/98 Hudson United Bancorp Dime Financial Corporation 249.19 12.10
03/31/98 08/14/98 Hudson United Bancorp IBS Financial Corp. 187.06 38.38
01/27/98 11/10/98 Jackson National Life Insurance Company First FS&LA of San Bernardino 128.02 NM
10/15/98 03/31/99 Kearny Federal Savings Bank 1st Bergen Bancorp 177.91 28.57
07/02/98 03/01/99 Lutheran Brotherhood Financial Metro Community Bank, FSB 169.66 NM
08/17/98 12/31/98 MAF Bancorp Inc. Westco Bancorp Inc. 152.94 17.54
<CAPTION>
Price/ Assets
Announcement 1 Day Premium
Announced Completion Buyer Name Seller Name (%) (%)
Date Date
<S> <C> <C> <C> <C> <C>
04/23/98 11/16/98 Ambanc Holding Co. Inc. AFSALA Bancorp Inc. 18.70 1.20
08/28/98 06/03/99 American General Corporation Standard Pacific Savings, FA NA NA
04/03/98 10/01/98 Astoria Financial Corporation Long Island Bancorp Inc. 29.08 3.33
02/25/98 09/30/98 BB&T Corporation Maryland Federal Bancorp Inc. 21.50 16.68
05/07/98 09/03/98 Blackhawk Bancorp, Inc. First Financial Bancorp Inc. 15.47 17.65
02/27/98 06/26/98 Blue River Bancshares Shelby County Bancorp 11.11 NA
09/29/98 03/31/99 Capital Bank Home Savings Bank of Siler City Inc. SSB 24.99 33.45
06/29/98 09/30/98 Carolina First Corporation Poinsett Financial Corporation 20.22 NA
05/29/98 09/30/98 Cecil Bancorp Inc. Columbian Bank, A FSB 10.66 NA
05/07/98 08/03/98 Central Bancshares Inc. Pioneer Financial Corporation 28.66 129.07
10/28/98 03/29/99 Centura Banks Inc. First Coastal Bankshares Inc. 20.69 27.79
08/26/98 02/05/99 Centura Banks Inc. Scotland Bancorp Inc. 37.16 29.65
04/24/98 10/16/98 Charter One Financial Inc. CS Financial Corporation 18.81 NA
06/15/98 11/30/98 Charter One Financial Inc. ALBANK Financial Corporation 26.31 42.87
10/12/98 02/26/99 Coal City Corporation Avondale Financial Corp. NM 0.00
02/12/98 07/31/98 Commercial Federal Corporation AmerUs Bank 14.65 NA
03/09/98 08/14/98 Commercial Federal Corporation First Colorado Bancorp, Inc. 34.04 6.19
04/22/98 12/14/98 Community West Bancshares Palomar Savings & Loan Association 15.52 NA
11/18/98 08/02/99 Crown Group Inc. Delaware First Financial Corporation 17.71 51.22
12/16/98 05/21/99 Dime Bancorp Inc. Lakeview Financial Corp. 19.99 3.08
07/20/98 01/21/99 Dime Community Bancshares Inc. Financial Bancorp Inc. 23.71 26.56
03/20/98 08/31/98 Emclaire Financial Corp. Peoples Savings Financial Corporation 27.42 NA
07/06/98 11/20/98 Enterprise Federal Bancorp Inc. Security Savings Holding Co. Inc. 17.77 NA
09/09/98 04/30/99 FBOP Corporation Calumet Bancorp Inc. 22.46 18.52
09/28/98 03/19/99 Fidelity Financial of Ohio Inc. Glenway Financial Corp. NM 8.90
01/14/98 06/26/98 Fifth Third Bancorp CitFed Bancorp, Inc. 22.02 42.87
09/25/98 05/14/99 Fifth Third Bancorp Enterprise Federal Bancorp Inc. 19.05 50.03
01/05/98 06/19/98 Fifth Third Bancorp State Savings Company 32.24 NA
05/18/98 09/30/98 First Charter Corporation HFNC Financial Corp. 24.52 2.50
08/17/98 04/13/99 First Federal Savings Bank of Siouxland Mid-Iowa Financial Corp. 20.88 22.45
12/07/98 04/02/99 First National Bank of Shelby First Carolina Federal Savings Bank 15.38 NA
07/09/98 12/18/98 First Source Bancorp Inc. Pulse Bancorp Inc. 19.70 12.28
08/13/98 12/31/98 First Western Bank Mitchell Bancorp 50.93 24.03
09/03/98 12/29/98 FirstCapital Bank SSB Liberty Savings Association NA NA
04/05/98 10/23/98 FirstMerit Corporation Security First Corporation 37.63 30.85
05/14/98 12/31/98 FLAG Financial Corporation The Brown Bank 11.26 NA
06/25/98 12/31/98 German American Bancorp 1ST Bancorp 22.00 NA
02/05/98 09/11/98 Golden State Bancorp Inc. First Nationwide Holdings NM NA
09/08/98 04/01/99 Greater Community Bancorp First Savings Bancorp of Little Falls 12.67 NA
03/31/98 08/21/98 Hudson United Bancorp Dime Financial Corporation 21.99 6.25
03/31/98 08/14/98 Hudson United Bancorp IBS Financial Corp. 32.77 3.63
01/27/98 11/10/98 Jackson National Life Insurance Company First FS&LA of San Bernardino 5.89 50.00
10/15/98 03/31/99 Kearny Federal Savings Bank 1st Bergen Bancorp 21.51 33.33
07/02/98 03/01/99 Lutheran Brotherhood Financial Metro Community Bank, FSB 16.47 NA
08/17/98 12/31/98 MAF Bancorp Inc. Westco Bancorp Inc. 25.79 14.31
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Price/ Book Price/ Earnings
Announcement Announcement
Announced Completion Buyer Name Seller Name (%) (x)
Date Date
<S> <C> <C> <C> <C> <C>
06/25/98 01/01/99 Mutual Bancorp of the Berkshires Inc. Lenox Financial Services Corporation NA NA
05/22/98 12/01/98 National City Bancshares Princeton Federal Bank, FSB 175.71 25.00
04/09/98 12/15/98 Ohio Valley Banc Corp. Jackson Savings Bank 119.51 24.16
07/20/98 01/01/99 Peoples Heritage Financial Group SIS Bancorp Inc. 312.77 32.34
10/20/98 03/26/99 Peoples Holding Company Inter-City Federal Savings Bank 227.14 33.33
11/03/98 05/12/99 Perpetual Federal Savings & Loan Assoc. Progressive Federal Savings Bank NA NA
03/31/98 07/31/98 Private Investor - Marshall T. Reynolds Summit Savings, FSB 146.39 16.20
08/28/98 12/23/98 Provident Savings Bank Monarch Bank FSB NA NA
03/11/98 08/05/98 R&G Financial Corp. Fajardo Federal Savings Bank 206.74 26.64
12/01/98 05/17/99 Republic Bancorp Inc. D & N Financial Corporation 246.69 18.16
02/10/98 11/09/98 Republic Bancshares Inc. Bankers Savings Bank 300.86 NM
04/22/98 11/05/98 Republic Bancshares Inc. Lochaven Federal Savings & Loan Association 206.77 NM
05/28/98 10/29/98 Republic Security Financial Corporation First Palm Beach Bancorp Inc. 237.88 30.75
03/26/98 07/02/98 Republic Security Financial Corporation UniFirst Federal Savings Bank 168.20 45.76
07/20/98 03/22/99 Richmond County Financial Corp. Bayonne Bancshares Inc. 175.40 39.98
05/26/98 02/17/99 Roslyn Bancorp Inc. TR Financial Corp. 403.07 27.23
03/09/98 10/01/98 Royal Bank of Canada Security First Network Bank 190.00 NM
02/02/98 12/03/98 Seacoast Financial Services Corp. Sandwich Bancorp 295.89 26.12
05/04/98 11/19/98 Second Bancorp Inc. Trumbull Financial Corp. 327.90 34.60
02/06/98 06/30/98 Signal Corp. First Shenango Bancorp Inc. 205.08 21.18
12/17/98 07/19/99 Sky Financial Group Inc. Wood Bancorp Inc. 239.22 23.65
02/26/98 06/30/98 Southside Bancshares Corp. Public Service Bank FSB 194.78 31.60
10/21/98 04/01/99 Southwest Bancorporation of Texas Inc. Fort Bend Holding Corp. 173.72 23.14
09/08/98 06/30/99 Sovereign Bancorp Peoples Bancorp Inc. 111.70 44.98
06/30/98 01/22/99 St Francis Capital Corp. Reliance Bancshares Inc. 107.41 47.62
06/02/98 12/15/98 State Financial Services Corp. Home Bancorp of Elgin Inc. 139.78 51.32
04/23/98 11/13/98 Sterling Financial Corporation Big Sky Bancorp Inc. 148.08 20.27
06/18/98 11/23/98 Summit Bancorp NSS Bancorp 257.34 25.14
04/15/98 09/01/98 Synovus Financial Corporation Community Bank Capital Corporation 366.13 17.98
01/15/98 08/11/98 Telebanc Financial Corporation Direct Financial Corporation 153.93 NM
11/16/98 06/30/99 Temple-Inland Inc. HF Bancorp Inc. 140.90 NM
04/21/98 04/21/98 UCBH Holdings Inc. USB Holdings 145.36 12.87
07/02/98 01/31/99 Union Planters Corp. First Mutual Bancorp 127.41 46.25
02/18/98 10/01/98 United Bankshares Inc. Fed One Bancorp 213.40 27.42
09/22/98 03/31/99 United National Bancorp Raritan Bancorp Inc. 284.98 24.36
10/26/98 09/01/99 United Payors & United Providers Inc. Quantum Financial Holdings Inc. 132.35 25.25
03/06/98 08/31/98 USB Holding Company Tappan Zee Financial Inc. 151.10 30.56
05/29/98 10/16/98 Valley National Bancorp Wayne Bancorp Inc. 200.44 35.08
09/16/98 01/28/99 VIB Corp. Bank of Stockdale FSB 284.97 37.68
03/17/98 10/01/98 Washington Mutual Inc. H.F. Ahmanson & Company 390.67 22.38
07/15/98 02/01/99 Westbank Corporation Cargill Bancorp Inc. 157.22 31.89
12/04/98 06/14/99 Winton Financial Corporation BenchMark Federal Savings Bank 158.77 NM
Average: 209.18 27.62
Median: 201.88 28.21
<CAPTION>
Price/ Assets
Announcement 1 Day Premium
Announced Completion Buyer Name Seller Name (%) (%)
Date Date
<S> <C> <C> <C> <C> <C>
06/25/98 01/01/99 Mutual Bancorp of the Berkshires Inc. Lenox Financial Services Corporation NA NA
05/22/98 12/01/98 National City Bancshares Princeton Federal Bank, FSB 24.78 NA
04/09/98 12/15/98 Ohio Valley Banc Corp. Jackson Savings Bank 20.79 NA
07/20/98 01/01/99 Peoples Heritage Financial Group SIS Bancorp Inc. 23.97 27.19
10/20/98 03/26/99 Peoples Holding Company Inter-City Federal Savings Bank 26.59 NA
11/03/98 05/12/99 Perpetual Federal Savings & Loan Assoc. Progressive Federal Savings Bank NA NA
03/31/98 07/31/98 Private Investor - Marshall T. Reynolds Summit Savings, FSB 8.82 NA
08/28/98 12/23/98 Provident Savings Bank Monarch Bank FSB NA NA
03/11/98 08/05/98 R&G Financial Corp. Fajardo Federal Savings Bank 21.73 NA
12/01/98 05/17/99 Republic Bancorp Inc. D & N Financial Corporation 14.69 30.71
02/10/98 11/09/98 Republic Bancshares Inc. Bankers Savings Bank 18.26 NA
04/22/98 11/05/98 Republic Bancshares Inc. Lochaven Federal Savings & Loan Association 9.96 NA
05/28/98 10/29/98 Republic Security Financial Corporation First Palm Beach Bancorp Inc. 16.70 50.81
03/26/98 07/02/98 Republic Security Financial Corporation UniFirst Federal Savings Bank 9.50 NA
07/20/98 03/22/99 Richmond County Financial Corp. Bayonne Bancshares Inc. 27.10 11.13
05/26/98 02/17/99 Roslyn Bancorp Inc. TR Financial Corp. 27.81 46.62
03/09/98 10/01/98 Royal Bank of Canada Security First Network Bank 31.25 NA
02/02/98 12/03/98 Seacoast Financial Services Corp. Sandwich Bancorp 25.27 10.82
05/04/98 11/19/98 Second Bancorp Inc. Trumbull Financial Corp. 24.80 NA
02/06/98 06/30/98 Signal Corp. First Shenango Bancorp Inc. 27.26 27.34
12/17/98 07/19/99 Sky Financial Group Inc. Wood Bancorp Inc. 35.48 29.59
02/26/98 06/30/98 Southside Bancshares Corp. Public Service Bank FSB 12.06 NA
10/21/98 04/01/99 Southwest Bancorporation of Texas Inc. Fort Bend Holding Corp. 19.85 14.47
09/08/98 06/30/99 Sovereign Bancorp Peoples Bancorp Inc. 43.44 26.31
06/30/98 01/22/99 St Francis Capital Corp. Reliance Bancshares Inc. 55.69 21.21
06/02/98 12/15/98 State Financial Services Corp. Home Bancorp of Elgin Inc. 37.13 13.87
04/23/98 11/13/98 Sterling Financial Corporation Big Sky Bancorp Inc. 19.97 28.96
06/18/98 11/23/98 Summit Bancorp NSS Bancorp 22.46 28.24
04/15/98 09/01/98 Synovus Financial Corporation Community Bank Capital Corporation 23.47 NA
01/15/98 08/11/98 Telebanc Financial Corporation Direct Financial Corporation 8.15 NA
11/16/98 06/30/99 Temple-Inland Inc. HF Bancorp Inc. 11.58 8.82
04/21/98 04/21/98 UCBH Holdings Inc. USB Holdings 7.68 NA
07/02/98 01/31/99 Union Planters Corp. First Mutual Bancorp 17.40 5.71
02/18/98 10/01/98 United Bankshares Inc. Fed One Bancorp 25.34 8.87
09/22/98 03/31/99 United National Bancorp Raritan Bancorp Inc. 22.48 15.89
10/26/98 09/01/99 United Payors & United Providers Inc. Quantum Financial Holdings Inc. 8.65 NA
03/06/98 08/31/98 USB Holding Company Tappan Zee Financial Inc. 26.73 15.79
05/29/98 10/16/98 Valley National Bancorp Wayne Bancorp Inc. 27.21 NA
09/16/98 01/28/99 VIB Corp. Bank of Stockdale FSB 20.52 NA
03/17/98 10/01/98 Washington Mutual Inc. H.F. Ahmanson & Company 21.22 22.69
07/15/98 02/01/99 Westbank Corporation Cargill Bancorp Inc. 12.56 NA
12/04/98 06/14/99 Winton Financial Corporation BenchMark Federal Savings Bank 10.07 NA
Average: 22.00 24.04
Median: 21.62 21.83
</TABLE>
<PAGE>
EXHIBIT II
Thrift Acquisitions Announced in 1999
<PAGE>
Exhibit II
Thrift Acquisitions Announced in 1999
<TABLE>
<CAPTION>
Price/ Book Price/ Earnings
Announcement Announcement
Announced Completion Buyer Name Seller Name (%) (x)
Date Date
<C> <C> <S> <C> <C> <C>
01/05/99 06/07/99 Anchor BanCorp Wisconsin Inc. FCB Financial Corp. 223.20 24.53
01/27/99 07/09/99 BB&T Corporation First Citizens Corporation 297.92 23.43
04/28/99 11/19/99 BB&T Corporation First Liberty Financial Corp. 366.90 27.76
03/18/99 08/11/99 Belvedere Capital Partners Inc. Placer Savings Bank 233.01 21.70
02/17/99 NA Bremer Financial Corporation Northwest Equity Corporation 173.81 18.32
01/25/99 07/01/99 BSB Bancorp Inc. Skaneateles Bancorp Inc. 215.19 26.56
08/06/99 01/06/00 Camco Financial Corporation Westwood Homestead Financial Corporation 120.81 20.80
07/27/99 12/20/99 Camden National Corporation KSB Bancorp Inc. 203.50 15.51
04/14/99 10/04/99 CCB Financial Corporation Stone Street Bancorp Inc. 126.98 24.01
05/19/99 12/15/99 Central Bancompany Fulton Bancorp Inc. 124.59 29.02
08/05/99 NA Century South Banks Inc. Haywood Bancshares Inc. 122.27 NM
05/17/99 10/01/99 Charter One Financial Inc. St. Paul Bancorp Inc. 229.66 38.15
05/03/99 10/12/99 Citizens Bancshares Company MBLA Financial Corp. 106.20 16.54
01/23/99 06/01/99 CNB Bancorp Inc. Adirondack Financial Services Bancorp 162.48 47.77
11/05/99 NA Compass Bancshares Inc. MegaBank Financial Corporation 290.92 18.29
01/15/99 05/14/99 Concordia Capital Corporation Wilkinson County Savings Bank 188.80 28.66
06/01/99 01/13/00 E*TRADE Group Inc. Telebanc Financial Corp. NM NM
11/17/99 NA East Texas Financial Services Inc. Gilmer Financial Services Inc. 138.55 25.66
07/21/99 NA ESB Financial Corporation SHS Bancorp Inc. 114.65 31.00
10/27/99 NA Exchange National Bancshares Inc. CNS Bancorp Inc. 117.26 34.23
07/19/99 07/19/99 FBOP Corporation Sterling Savings Bank NA NA
03/01/99 08/06/99 Fifth Third Bancorp Emerald Financial Corporation 371.84 27.53
08/09/99 NA Financial Institutional Partners Mortgage Mission Savings & Loan Association, FA NA NA
12/16/99 NA First Bancorp First Savings Bancorp Inc. 115.64 16.06
06/30/99 10/29/99 First Busey Corporation Eagle BancGroup Inc. 140.66 30.28
11/11/99 NA First Community Bancshares Inc. Blue River Federal Savings Bank 147.46 25.60
07/08/99 11/19/99 First M & F Corp. Community Federal Bancorp Inc. 133.24 23.42
11/23/99 NA First Place Financial Corp. Ravenna Savings Bank 192.91 14.25
03/12/99 08/27/99 FLAG Financial Corporation Thomaston Federal Savings Bank 227.02 20.17
10/18/99 NA FNB Corp. Carolina Fincorp Inc. 178.48 27.80
05/28/99 08/31/99 FNB Financial Services Corporation Black Diamond Savings Bank FSB 206.29 15.91
10/21/99 NA Friedman, Billings, Ramsey Group Inc. Money Management Associates NA NA
09/14/99 NA FVNB Corp. Mid-Coast Savings Bank SSB NA NA
09/10/99 NA Glacier Bancorp Inc. Mountain West Bank 256.01 35.76
08/11/99 11/05/99 Hamilton Federal Savings & Loan Associate Belmar Federal Savings & Loan Association NA NA
05/17/99 09/03/99 Hudson River Bancorp Inc. SFS Bancorp Inc. 128.45 13.72
01/26/99 05/21/99 Hudson United Bancorp Little Falls Bancorp Inc. 144.77 28.01
04/13/99 01/07/00 Independence Community Bank Corp. Statewide Financial Corporation 173.75 29.44
03/24/99 09/15/99 Independent Bank Corp. Mutual Savings Bank FSB 173.40 23.93
07/13/99 NA IndyMac Mortgage Holdings Inc. SGV Bancorp Inc. 170.07 25.25
04/26/99 06/30/99 Lehman Brothers Holdings Inc. DSB Bancorp Inc. NA NA
</TABLE>
<TABLE>
<CAPTION>
Price/ Assets
Announcement 1 Day Premium
Announced Completion Buyer Name Seller Name (%) (%)
Date Date
<C> <C> <S> <C> <C> <C>
01/05/99 06/07/99 Anchor BanCorp Wisconsin Inc. FCB Financial Corp. 32.73 57.68
01/27/99 07/09/99 BB&T Corporation First Citizens Corporation 32.86 37.66
04/28/99 11/19/99 BB&T Corporation First Liberty Financial Corp. 29.41 43.01
03/18/99 08/11/99 Belvedere Capital Partners Inc. Placer Savings Bank 14.43 NA
02/17/99 NA Bremer Financial Corporation Northwest Equity Corporation 21.37 28.00
01/25/99 07/01/99 BSB Bancorp Inc. Skaneateles Bancorp Inc. 15.65 46.78
08/06/99 01/06/00 Camco Financial Corporation Westwood Homestead Financial Corporation 19.31 23.76
07/27/99 12/20/99 Camden National Corporation KSB Bancorp Inc. 17.29 61.79
04/14/99 10/04/99 CCB Financial Corporation Stone Street Bancorp Inc. 30.41 65.98
05/19/99 12/15/99 Central Bancompany Fulton Bancorp Inc. 26.83 12.65
08/05/99 NA Century South Banks Inc. Haywood Bancshares Inc. 17.84 50.80
05/17/99 10/01/99 Charter One Financial Inc. St. Paul Bancorp Inc. 20.23 16.06
05/03/99 10/12/99 Citizens Bancshares Company MBLA Financial Corp. 14.95 38.99
01/23/99 06/01/99 CNB Bancorp Inc. Adirondack Financial Services Bancorp 21.34 NA
11/05/99 NA Compass Bancshares Inc. MegaBank Financial Corporation 32.28 NA
01/15/99 05/14/99 Concordia Capital Corporation Wilkinson County Savings Bank 16.62 NA
06/01/99 01/13/00 E*TRADE Group Inc. Telebanc Financial Corp. NM 40.53
11/17/99 NA East Texas Financial Services Inc. Gilmer Financial Services Inc. 14.55 118.52
07/21/99 NA ESB Financial Corporation SHS Bancorp Inc. 15.37 57.80
10/27/99 NA Exchange National Bancshares Inc. CNS Bancorp Inc. 27.50 52.29
07/19/99 07/19/99 FBOP Corporation Sterling Savings Bank NA NA
03/01/99 08/06/99 Fifth Third Bancorp Emerald Financial Corporation 33.30 36.68
08/09/99 NA Financial Institutional Partners Mortgage Mission Savings & Loan Association, FA NA NA
12/16/99 NA First Bancorp First Savings Bancorp Inc. 24.87 14.96
06/30/99 10/29/99 First Busey Corporation Eagle BancGroup Inc. 14.81 17.00
11/11/99 NA First Community Bancshares Inc. Blue River Federal Savings Bank 13.66 NA
07/08/99 11/19/99 First M & F Corp. Community Federal Bancorp Inc. 25.97 32.85
11/23/99 NA First Place Financial Corp. Ravenna Savings Bank 12.40 NA
03/12/99 08/27/99 FLAG Financial Corporation Thomaston Federal Savings Bank 22.89 NA
10/18/99 NA FNB Corp. Carolina Fincorp Inc. 24.41 31.96
05/28/99 08/31/99 FNB Financial Services Corporation Black Diamond Savings Bank FSB 14.68 NA
10/21/99 NA Friedman, Billings, Ramsey Group Inc. Money Management Associates NA NA
09/14/99 NA FVNB Corp. Mid-Coast Savings Bank SSB NA NA
09/10/99 NA Glacier Bancorp Inc. Mountain West Bank 20.03 NA
08/11/99 11/05/99 Hamilton Federal Savings & Loan Associate Belmar Federal Savings & Loan Association NA NA
05/17/99 09/03/99 Hudson River Bancorp Inc. SFS Bancorp Inc. 17.85 16.07
01/26/99 05/21/99 Hudson United Bancorp Little Falls Bancorp Inc. 15.79 NA
04/13/99 01/07/00 Independence Community Bank Corp. Statewide Financial Corporation 14.91 19.48
03/24/99 09/15/99 Independent Bank Corp. Mutual Savings Bank FSB 10.91 52.67
07/13/99 NA IndyMac Mortgage Holdings Inc. SGV Bancorp Inc. 12.62 NA
04/26/99 06/30/99 Lehman Brothers Holdings Inc. DSB Bancorp Inc. NA NA
</TABLE>
<PAGE>
Exhibit II
Thrift Acquisitions Announced in 1999
<TABLE>
<CAPTION>
Price/ Book Price/ Earnings
Announcement Announcement
Announced Completion Buyer Name Seller Name (%) (x)
Date Date
<C> <C> <S> <C> <C> <C>
05/26/99 10/15/99 Local Financial Corporation Guthrie Savings Inc. 126.82 20.80
02/02/99 09/30/99 Mahaska Investment Company Midwest Bancshares Inc. 151.07 12.88
03/04/99 06/25/99 Manufacturers Bank of Florida Partners Bank of Florida FSB 157.67 NM
12/03/99 NA Midland States Bancorp Inc. CSB Financial Group Inc. 115.11 41.03
02/04/99 08/31/99 NBC Capital Corporation FFBS BanCorp Inc. 188.10 29.27
08/09/99 12/01/99 NewSouth Bancorp Inc. Green Street Financial Corp. 101.60 21.48
08/30/99 NA Niagara Bancorp Inc. (MHC) Albion Banc Corp. 182.50 40.38
07/13/99 12/10/99 North Central Bancorp Columbus Financial Corporation 188.15 23.75
01/15/99 07/01/99 North Country Savings Bank Canton Federal Savings & Loan Association NA NA
08/16/99 NA North Fork Bancorporation JSB Financial Inc. 153.86 13.84
08/30/99 NA North Fork Bancorporation Reliance Bancorp Inc. 199.06 16.87
10/01/99 NA Northern Star Financial Inc. First Federal Holding Co. of Morris 229.43 19.75
03/11/99 10/01/99 Oak Hill Financial Inc. Towne Financial Corporation 187.93 17.94
02/24/99 07/09/99 Old Kent Financial Corp. CFSB Bancorp Inc. 332.99 20.49
06/03/99 11/30/99 PAB Bankshares Inc. Baxley Federal Savings Bank 129.91 15.32
08/26/99 01/07/00 Peapack-Gladstone Fin. Corp. Chatham Savings FSB 225.01 20.24
09/21/99 NA Peoples Bancorp Three Rivers Financial Corp. 122.32 20.63
10/01/99 NA Peoples Building Loan & Sav. Co. Harvest Home Financial Corporation 160.43 31.03
10/01/99 NA Peoples Building Loan & Sav. Co. Oakley Improved Building & Loan Company (The) NA NA
04/13/99 10/29/99 Phoenix Home Life Mutual Ins. Co. New London Trust FSB NA NA
08/16/99 NA Provident Financial Group Inc. Fidelity Financial of Ohio Inc. 197.00 42.86
08/03/99 12/03/99 Provident Financial Group Inc. OHSL Financial Corp. 209.85 25.57
06/06/99 NA Southwest Securities Group Inc. ASBI Holdings Inc. NA NA
07/01/99 11/12/99 Union Financial Bancshares Inc. South Carolina Community Bancshares Inc. 103.80 23.03
08/03/99 NA Uwharrie Capital Corp. Anson Bancorp Inc. 105.81 59.66
09/15/99 NA Virginia Commonwealth Fin. Co. Caroline Savings Bank 157.87 26.37
12/02/99 NA Webster Financial Corp. MECH Financial Inc. 214.90 16.61
Average: 179.96 25.25
Median: 173.58 24.27
</TABLE>
<TABLE>
<CAPTION>
Price/ Assets
Announcement 1 Day Premium
Announced Completion Buyer Name Seller Name (%) (%)
Date Date
<C> <C> <S> <C> <C> <C>
05/26/99 10/15/99 Local Financial Corporation Guthrie Savings Inc. 20.14 48.33
02/02/99 09/30/99 Mahaska Investment Company Midwest Bancshares Inc. 11.71 43.62
03/04/99 06/25/99 Manufacturers Bank of Florida Partners Bank of Florida FSB 7.52 NA
12/03/99 NA Midland States Bancorp Inc. CSB Financial Group Inc. 25.14 42.22
02/04/99 08/31/99 NBC Capital Corporation FFBS BanCorp Inc. 30.44 8.40
08/09/99 12/01/99 NewSouth Bancorp Inc. Green Street Financial Corp. 36.59 16.19
08/30/99 NA Niagara Bancorp Inc. (MHC) Albion Banc Corp. 15.75 27.27
07/13/99 12/10/99 North Central Bancorp Columbus Financial Corporation 12.14 NA
01/15/99 07/01/99 North Country Savings Bank Canton Federal Savings & Loan Association NA NA
08/16/99 NA North Fork Bancorporation JSB Financial Inc. 36.80 4.36
08/30/99 NA North Fork Bancorporation Reliance Bancorp Inc. 14.45 12.55
10/01/99 NA Northern Star Financial Inc. First Federal Holding Co. of Morris 19.30 NA
03/11/99 10/01/99 Oak Hill Financial Inc. Towne Financial Corporation 16.48 NA
02/24/99 07/09/99 Old Kent Financial Corp. CFSB Bancorp Inc. 27.63 34.62
06/03/99 11/30/99 PAB Bankshares Inc. Baxley Federal Savings Bank 18.44 98.33
08/26/99 01/07/00 Peapack-Gladstone Fin. Corp. Chatham Savings FSB 18.85 NA
09/21/99 NA Peoples Bancorp Three Rivers Financial Corp. 13.72 66.91
10/01/99 NA Peoples Building Loan & Sav. Co. Harvest Home Financial Corporation 16.56 25.22
10/01/99 NA Peoples Building Loan & Sav. Co. Oakley Improved Building & Loan Company (The) NA NA
04/13/99 10/29/99 Phoenix Home Life Mutual Ins. Co. New London Trust FSB NA NA
08/16/99 NA Provident Financial Group Inc. Fidelity Financial of Ohio Inc. 24.06 70.55
08/03/99 12/03/99 Provident Financial Group Inc. OHSL Financial Corp. 20.60 47.54
06/06/99 NA Southwest Securities Group Inc. ASBI Holdings Inc. NA NA
07/01/99 11/12/99 Union Financial Bancshares Inc. South Carolina Community Bancshares Inc. 21.13 22.81
08/03/99 NA Uwharrie Capital Corp. Anson Bancorp Inc. 40.49 42.68
09/15/99 NA Virginia Commonwealth Fin. Co. Caroline Savings Bank 18.98 NA
12/02/99 NA Webster Financial Corp. MECH Financial Inc. 18.79 14.55
Average: 20.80 39.03
Median: 19.14 37.66
</TABLE>
<PAGE>
REVOCABLE PROXY
FIRST PALMETTO FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
ANNUAL MEETING OF STOCKHOLDERS
___________ __, 2000
- --------------------------------------------------------------------------------
The undersigned hereby constitutes and appoints Samuel R. Small and Charlie
E. Nash, and each of them, the proxies of the undersigned, with full power of
substitution, to attend the Annual Meeting of Stockholders (the "Annual
Meeting") of First Palmetto Financial Corporation ("First Palmetto"), the
holding company for First Palmetto Savings Bank, F.S.B. (the "Bank"), to be held
at the Bank's main office, 407 DeKalb Street, Camden, South Carolina, on
________, _________ __, 2000, at _____ _.m., local time, and at any adjournments
thereof, and to vote all the shares of stock of First Palmetto which the
undersigned may be entitled to vote, upon the following matters:
<TABLE>
<CAPTION>
FOR WITHHOLD
--- --------
<S> <C> <C>
I. The election as directors of the nominees
listed below. + +
- -
Pierce W. Cantey, Jr.
William R. Clyburn
INSTRUCTION: To withhold your
vote for any nominee(s), write that
nominee's name on the line below.
</TABLE>
______________________________
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
II. The approval of a proposal (the "Reverse Stock + + +
- - -
Split Proposal") to amend First Palmetto's
Restated Certificate of Incorporation to effect
a 1-for-125 reverse stock split of the common
stock and to issue shares of preferred stock in
exchange for shares of common stock held by any
First Palmetto stockholder who, following the reverse
stock split, would otherwise hold less than one share of
common stock of record in any separate account.
III. The transaction of such other business as
may properly come before the Annual
Meeting or any adjournments thereof.
</TABLE>
The Board of Directors recommends a vote "FOR" election of the nominees
listed above and "FOR" approval of the Reverse Stock Split Proposal.
- --------------------------------------------------------------------------------
THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE INSTRUCTIONS MARKED HEREIN. IF
NO INSTRUCTIONS TO THE CONTRARY ARE MARKED HEREIN, THIS PROXY WILL BE VOTED FOR
THE ELECTION AS DIRECTORS OF THE NOMINEES LISTED ABOVE, FOR THE REVERSE STOCK
SPLIT PROPOSAL AND AS DETERMINED BY A MAJORITY OF THE BOARD OF DIRECTORS AS TO
OTHER MATTERS AS TO WHICH THIS PROXY CONFERS DISCRETIONARY AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
The undersigned stockholder hereby acknowledges receipt of a copy of the
accompanying Notice of Annual Meeting of Stockholders and Proxy Statement and
hereby revokes any proxy or proxies heretofore given. This proxy may be revoked
at any time prior to its exercise.
Dated:______________, 2000
__________________________________ _____________________________________
PRINT NAME OF STOCKHOLDER PRINT NAME OF STOCKHOLDER
__________________________________ _____________________________________
SIGNATURE OF STOCKHOLDER SIGNATURE OF STOCKHOLDER
Please sign exactly as your name appears on the enclosed card. When signing as
attorney, executor, administrator, trustee or guardian, etc., please give your
full title. If the signer is a corporation, please sign the full name by a duly
appointed officer. If shares are held jointly, each holder should sign.
- --------------------------------------------------------------------------------
PLEASE COMPLETE, DATE, SIGN AND MAIL THIS PROXY PROMPTLY IN THE ENCLOSED
POSTAGE-PREPAID ENVELOPE.
- --------------------------------------------------------------------------------
<PAGE>
Exhibit 16.C
FAIR MARKET VALUATION
FIRST PALMETTO FINANCIAL
CORPORATION
Camden, South Carolina
Financial Data as of:
September 30, 1999
Valuation Date: December 17, 1999
Prepared By:
RP Financial, LC.
1700 North Moore Street
Suite 2210
Arlington, Virginia 22209
<PAGE>
[RP FINANCIAL, LC LETTERHEAD]
December 27, 1999
Board of Directors
First Palmetto Financial Corporation
407 DeKalb Street
Camden, South Carolina 29020
Members of the Board of Directors:
Pursuant to your request, RP Financial, LC. ("RP Financial") hereby
provides an independent appraisal of the outstanding shares of common stock of
First Palmetto Financial Corporation, Camden, South Carolina ("First Palmetto"
or the "Holding Company"). It is our opinion that, pursuant to the "Statement of
Relevant Considerations" and the detailed analysis which follow, as of December
17, 1999, utilizing financial data as of September 30, 1999, the fair market
value of the Holding Company's outstanding common stock shares equaled $75.00
per share.
Our valuation is not intended, and must not be construed as, a
recommendation of any kind as to the advisability of purchasing shares of common
stock. Moreover, because such valuation is necessarily based upon estimates and
projections of a number of matters, all of which can be subject to change from
time to time, no assurance can be given that such persons or entities who
purchase shares of common stock at the price concluded herein will thereafter be
able to sell such shares at the same price.
Respectfully submitted,
RP FINANCIAL, LC.
/s/ RP Financial, LC.
Enclosure
<PAGE>
TABLE OF CONTENTS
PAGE
DESCRIPTION NUMBER
----------- ------
Appraiser's Certification
Statement of Relevant Considerations
SECTION ONE INTRODUCTION AND DESCRIPTION
- -----------
Introduction 1.1
Financial Condition 1.1
Income Statement 1.4
Asset Quality 1.7
Interest Rate Risk 1.7
Legal Proceedings 1.8
SECTION TWO OPERATING ENVIRONMENT AND MARKET AREA
- -----------
Stock Market Conditions 2.1
Economic and Interest Rate Environment 2.2
Primary Market Area 2.3
Competition and Market Share 2.5
SECTION THREE COMPARATIVE ANALYSIS VERSUS PEER GROUP
- -------------
Selection of Peer Group 3.1
Balance Sheet Composition and Growth Rates 3.3
Income and Expense Components 3.5
Loan Portfolio Composition 3.7
Credit Risk 3.9
Interest Rate Risk 3.9
SECTION FOUR APPRAISAL OF FAIR MARKET VALUE
- ------------
Recent Trading Activity in the Holding Company's Stock 4.1
Standard Valuation Methodologies 4.1
Market Value Approach 4.2
1. P/E Approach 4.2
2. Price/Tangible Book Value 4.2
Discounted Earnings Approach 4.4
Valuation Adjustment for Marketability Discount 4.4
Pro Forma Impact of Reverse Stock Split 4.4
Conclusion 4.4
<PAGE>
LIST OF TABLES
TABLE
NUMBER DESCRIPTION PAGE
------ ----------- ----
1.1 Historical Balance Sheets 1.2
1.2 Historical Income Statements 1.5
1.3 Non-Performing Assets 1.7
2.1 South Carolina Employment Sectors 2.4
2.2 Unemployment Data 2.4
2.3 Deposit Summary 2.6
3.1 Peer Group of Publicly Traded Thrifts 3.2
3.2 Balance Sheet Composition and Growth Rates 3.4
3.3 Income as a Percent of Average Assets 3.6
3.4 Loan Portfolio Composition 3.8
3.5 Credit Risk 3.10
3.6 Interest Rate Risk Measures 3.11
4.1 Market Pricing Comparatives 4.3
<PAGE>
APPRAISER'S CERTIFICATION
This report has been prepared by RP
Financial, LC. for the Board of Directors of
First Palmetto Financial Corporation, Camden
South Carolina under the direct supervision
of the undersigned using standard valuation
techniques and practices, which are defined
herein.
Respectfully submitted,
RP FINANCIAL, LC.
/s/ RP Financial, LC.
<PAGE>
RP Financial, LC.
Page 1
STATEMENT OF RELEVANT CONSIDERATIONS
Statement of Purpose
- --------------------
This valuation document was prepared by RP Financial for the Board of
Directors of First Palmetto Financial Corporation, Camden, South Carolina
("First Palmetto" or the "Holding Company"). The Holding Company is a thrift
holding company which owns 100 percent of the outstanding common stock of First
Palmetto Savings Bank, FSB (the "Bank"), a federally-insured federal savings
bank operating in northeastern and central South Carolina. The purpose of this
valuation is to establish the fair market value of the Holding Company's common
stock. As set forth in First Palmetto's Proxy Statement, which is incorporated
herein by reference, the Board of Directors is proposing to amend First
Palmetto's Restated Certificate of Incorporation to effect a 1- for-125 reverse
stock split of First Palmetto's common stock, and to issue shares of preferred
stock in lieu of fractional share interests to any First Palmetto stockholder
who, following the reverse split, would hold less than one share of common stock
in any discrete account. The valuation utilizes financial data as of September
30, 1999 and market prices for thrift stocks as of December 17, 1999.
RP Financial, LC.
- -----------------
RP Financial, LC. of Arlington, Virginia, is a financial consulting firm
that, among other things, specializes in the fair market valuation of the equity
and debt securities issued by financial institutions and their subsidiary
companies. RP Financial has been approved as a qualified financial institution
appraisal firm by the Office of General Counsel of the Office of Thrift
Supervision ("OTS"), the Federal Deposit Insurance Corporation ("FDIC"), and
numerous state banking agencies. The principals and staff of RP Financial have
served as fair market appraisers and consultants for over 500 financial
institutions pursuant to initial and secondary offerings (including rights
offerings), business combinations, mutual-to-stock conversions, mutual holding
company formations, ESOPs and stock option plans, audited financial statement
disclosure and other purposes.
Neither RP Financial nor its employees have any present or contemplated
future interest in the stock of the Holding Company or its principals or any
other interest that might tend to prevent RP Financial in making a fair and
unbiased appraisal.
Definition of Fair Market Value
- -------------------------------
Throughout this valuation, the terms "market value" and "fair market value"
are considered to represent the value at which a willing buyer and willing
seller, both being informed of the relevant facts about the business, could
reasonably conduct a transaction, neither party acting under any compulsion to
do so.
Among other factors, this appraisal takes into consideration all elements
of appraisal listed in Internal Revenue Service Ruling 59-60, which provides
guidelines for the appraisal of closely held stocks. Revenue ruling 59-60 states
that all relevant factors should be taken into consideration, including the
following:
<PAGE>
RP Financial, LC.
Page 2
(1) The nature of the business and the history of the
enterprise from its inception;
(2) The economic outlook in general and the condition
and outlook of the specific industry in particular;
(3) The book value of the stock and the financial
condition of the business;
(4) The earning capacity of the company;
(5) The dividend-paying capacity of the company;
(6) Whether or not the enterprise has goodwill or
other intangible value;
(7) Sales of the stock and the size of the block of
stock to be valued; and,
(8) The market price of stocks of corporations engaged in
the same or similar line of business having their stocks
actively traded in a free and open market, either on an
exchange or over the counter.
Additionally, we have followed guidelines set forth in section 3(18) of
ERISA which refers to fair market value determined in good faith "and in
accordance with regulations promulgated by the Secretary (of Labor)," and
proposed regulations issued by the Department of Labor (setting forth general
guidelines regarding the determination of "adequate consideration" for a
security for which there is no generally recognized market").
Sources of Information Used
- ---------------------------
Several sources of financial information and other information on the
Holding Company were used in this appraisal including: (i) audited financial
information for the fiscal years ended September 30, 1995 through September 30,
1999; (ii) the Proxy Statement which sets forth the proposed reverse stock split
and issuance of preferred stock; (iii) other internal financial information; and
(iv) related management discussions. All information (financial and other
reports) concerning the Holding Company was provided by management of the
Holding Company. All information received has been accepted by RP Financial to
be correct and accurate with no further investigation. More specifically, we
have not performed a review or appraisal of individual loan or other asset
files.
Where appropriate, we considered information based on other available
published sources that we believe are reliable, but we cannot guarantee their
accuracy or completeness. Information on publicly-traded comparable companies
used in the valuation was derived from data published by SNL Securities, a
Charlottesville, Virginia-based company that maintains a financial database of
publicly-traded thrift institutions, and our own library of corporate reports
and securities filings of publicly-traded thrift institutions. Information on
the surrounding market area was provided by CACI, a Virginia-based company that
maintains a comprehensive demographic data base, and other government sources.
Branch deposit data, reported by third parties, was derived from data provided
by the OTS and the FDIC.
<PAGE>
RP Financial, LC.
Page 1.1
I. INTRODUCTION AND DESCRIPTION
Introduction
- ------------
First Palmetto Financial Corporation, Camden, South Carolina ("First
Palmetto" or the "Holding Company"), is a thrift holding company which owns 100
percent of the outstanding stock of First Palmetto Savings Bank, FSB, Camden,
South Carolina (the "Bank"), a federally-insured federal stock savings bank. The
Holding Company conducts operations from its headquarters office in Camden
(Kershaw County), and sixteen branch office locations throughout central and
northeastern South Carolina in the counties of Kershaw, Richland, Lexington,
Lancaster, Chesterfield, Darlington, Lee, Horry and Clarendon. The Holding
Company considers the various counties in which branch offices are located to be
the primary market area for lending and depository activities.
The Bank is subject to examination, supervision and regulation by the
Office of Thrift Supervision ("OTS"), and the Federal Deposit Insurance
Corporation ("FDIC"). Deposits are insured by the Savings Association Insurance
Fund ("SAIF"), which is administered by the FDIC, with deposits insured up to
the applicable limits for each depositor. The Bank is also currently a member of
the Federal Home Loan Bank ("FHLB") system. As of September 30, 1999, the
Holding Company maintained total assets of $475.8 million, deposits of $361.8
million, and equity capital of $28.2 million, or 5.93 percent of assets. At that
date, the Holding Company had 712,010 common shares issued and outstanding.
Financial Condition
- -------------------
Table 1.1 displays key balance sheet trends from September 30, 1995 through
September 30, 1999. The Holding Company has pursued expansion of assets,
primarily through growth of loans secured by local properties. To a lesser
extent, asset growth has been realized in cash and investments and
mortgage-backed securities. Total assets increased at a 10.2 percent annual rate
from fiscal year end 1995 through fiscal year end 1999. Deposit growth has
funded most of the Holding Company's asset growth, while greater utilization of
borrowings and growth of stockholders' equity have also funded asset growth.
Borrowings held by First Palmetto consist of FHLB advances, most of which have
maturities of five-to-ten years.
The Holding Company's loan portfolio increased steadily from fiscal year
end 1995 through fiscal year end 1999, exhibiting an annual growth rate of 12.4
percent during the period. Loan growth has emphasized diversification into
higher risk and higher yielding types of loans, although originations of loans
secured by 1-4 family residences continues to be a significant lending activity
for First Palmetto. However, growth of the 1-4 family loan portfolio has been
limited by the Bank's general philosophy of selling longer term fixed rate loan
originations to the secondary market, with such loans accounting for the bulk of
First Palmetto's 1-4 loan volume during the low interest rate environment that
has prevailed in recent years. The Bank reported a balance of loans serviced for
others of $140.7 million, as of September 30, 1999.
As of September 30, 1999, 1-4 family permanent mortgage loans comprised the
largest portion of the loan portfolio (41.7 percent of total loans), which was
followed by commercial real estate loans (40.6 percent of total loans). Loan
diversification also consists of consumer
<PAGE>
RP Financial, LC
Page 1.2
Table 1.1
First Palmetto Financial Corporation
Historical Balance Sheets
(Amount and Percent of Assets)
<TABLE>
<CAPTION>
At Fiscal Year End September 30, Annual
---------------------------------------------------------------------------------------- Growth
1995 1996 1997 1998 1999 Rate
------------------ ----------------- ----------------- ---------------- ---------------- --------
Amount Pct Amount Pct Amount Pct Amount Pct Amount Pct Pct
------ --- ------ --- ------ --- ------ --- ------ --- ---
($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Amount of:
Assets $323,183 100.0% $344,547 100.0% $372,948 100.0% $433,745 100.0% $475,751 100.0% 10.15%
Cash and investments 73,928 22.9% 73,752 21.4% 76,060 20.4% 60,277 13.9% 84,173 17.7% 3.30%
Mortgage-backed securities 39,410 12.2% 33,010 9.6% 32,367 8.7% 95,862 22.1% 59,877 12.6% 11.02%
Loans receivable, net 198,373 61.4% 227,209 65.9% 252,336 67.7% 263,989 60.9% 317,012 66.6% 12.43%
Intangible assets 3,393 1.0% 2,623 0.8% 2,044 0.5% 830 0.2% 512 0.1% -37.67%
Deposits 267,313 82.7% 288,157 83.6% 320,769 86.0% 343,947 79.3% 361,764 76.0% 7.86%
Borrowings 33,367 10.3% 32,550 9.4% 27,233 7.3% 60,667 14.0% 83,000 17.4% 25.59%
Stockholders' equity 19,345 6.0% 20,208 5.9% 22,855 6.1% 25,169 5.8% 28,231 5.9% 9.91%
Tangible equity 15,952 4.9% 17,585 5.1% 20,811 5.6% 24,339 5.6% 27,719 5.8% 14.81%
End of Period Shares Outstanding 693,160 693,010 708,010 708,010 712,010
Book Value/Share $27.91 $29.16 $32.28 $35.55 $39.65
Tangible book value/share $23.01 $25.37 $29.39 $34.38 $38.93
</TABLE>
- ----------------------------
(1) Ratios are as a percent of ending assets.
Sources: First Palmetto's audited and unaudited financial statements.
<PAGE>
RP Financial, LC.
Page 1.3
loans (7.7 percent of total loans), commercial business loans (7.4 percent of
total loans) and construction loans (2.6 percent of total loans).
Growth of the commercial real estate loan portfolio has been facilitated by
the origination of such loans in Kershaw and Richland Counties, South Carolina.
An increase in the concentration of commercial real estate loans comprising
First Palmetto's loan portfolio has served to enhance asset yields and shorten
asset duration, as such loans are primarily adjustable rate loans and are
offered at higher rates than 1-4 family loans to address the additional credit
risk associated with loans secured by commercial properties. While commercial
real estate loans imply a higher degree of credit risk than traditional 1-4
family residential mortgage loans, First Palmetto seeks to manage the credit
risk exposure of such loans through limiting loan-to-value ratios and
originating loans which are secured by properties in local and familiar markets.
Diversification into consumer and commercial business loans have also
served to enhance the yield and interest rate sensitivity of the loan portfolio.
Commercial business loans have been a lending growth area for First Palmetto,
while the consumer loan balance declined during fiscal 1999. The portfolio of
consumer loans includes revolving home equity loans, automobile loans, secured
and unsecured personal loans, loans secured by deposit accounts and
miscellaneous other closed-end consumer loans. Commercial business loans consist
primarily of secured lines of credit for businesses located in the primary
market area. The Bank attempts to limit risk of loss on commercial business
loans by limiting the amount and term of the loans, as well as by requiring
personal guarantees from the principals of the business.
Investment in mortgage-backed securities ("MBS") totaled $59.9 million, or
12.6 percent of assets, as of September 30, 1999, and have been utilized by the
Holding Company as an alternative investment to loans receivable, with the
minimal credit risk and low administration expenses offsetting the comparatively
lower yields relative to whole loans. Investment in mortgage-backed securities
peaked at $95.9 million, or 22.1 percent, of assets at fiscal year end 1998. The
MBS portfolio consists of securities which are guaranteed or insured by a
federal agency and are classified as held-to-maturity .
As of September 30, 1999, the Holding Company's balance of cash and
investments totaled $84.2 million, or 17.7 percent of assets. As shown in Table
1.1, the level of cash and investments has ranged from a high of 22.9 percent of
assets at fiscal year end 1995 to a low of 13.9 percent of assets at fiscal year
end 1998. The relatively high liquidity level maintained at fiscal year end 1995
reflects the impact of First Palmetto's acquisition of three branch offices and
$29 million in liquid assets during fiscal 1995. It has generally been the
Holding Company's policy to maintain a liquidity portfolio in excess of the
amount required to satisfy regulatory requirements. The general objectives of
the Bank's investment policy are to: (1) maintain liquidity levels sufficient to
meet the operating needs of the Bank and applicable federal requirements; (2)
limit interest rate risk by investing in short-term securities with laddered
maturities; and (3) limit credit risk by investing in U.S. Treasury and agency
securities. At September 30, 1999, the portfolio of cash and investments
consisted of cash and cash equivalents ($11.0 million), interest-earning
deposits in the FHLB and other financial institutions ($8.8 million), U.S.
government and agency obligations ($60.2 million) and FHLB stock ($4.2 million).
The investment portfolio was classified as held-to-maturity, as of September 30,
1999.
Funding needs are met with a combination of deposits, borrowings, internal
cash flow and equity. Deposits are the largest source of balance sheet funds,
and totaled $361.8 million, or 76.0 percent of assets, at September 30, 1999.
Since fiscal year end 1995, deposits have
<PAGE>
RP Financial, LC.
Page 1.4
increased at a 7.9 percent annual rate. At various times, the Bank has sought to
facilitate deposit growth through targeting selected markets for growth through
offering highly competitive deposit rates. Most of the deposit base consists of
certificate of deposits, with the balance consisting of lower costing
transaction and savings accounts. As of September 30, 1999, CDs accounted for
approximately 68 percent of First Palmetto's deposit composition. CDs held by
the Holding Company consist of retail deposits generated from its branch
network.
Borrowed funds have been utilized as a supplement to deposits to support
control of funding costs and to facilitate management of interest rate risk. As
of September 30, 1999, the Holding Company maintained borrowings of $83.0
million, equal to 17.4 percent of assets. Borrowings held by First Palmetto
consist entirely of FHLB advances, most of which have maturities of more than
five years for purposes of reducing the overall interest rate sensitivity of the
Holding Company's interest-bearing funding composition.
Asset growth slightly outpaced the Holding Company's capital growth rate,
as the Holding Company's equity-to-assets ratio declined from 6.0 percent at
fiscal year end 1995 to 5.9 percent at fiscal year end 1999. However, First
Palmetto's tangible equity-to-assets ratio increased from 4.9 percent to 5.8
percent over the same time period, reflecting the amortization of intangible
assets associated with the branch acquisitions. The Bank is in compliance with
all fully phased-in capital requirements, qualifying as a "well-capitalized"
institution.
Income Statement
- ----------------
Table 1.2 presents historical income statements for the past five fiscal
years and indicates that the Holding Company maintained profitable operations
throughout the period. Earnings for the Holding Company ranged from a low of
0.61 percent of average assets in fiscal 1996 to a high of 1.04 percent of
average assets in fiscal 1998. For fiscal 1999, the Holding Company's net income
to average assets ratio equaled 1.01 percent, based on earnings of $4.603
million. The relatively low earnings posted in fiscal 1996 reflects the impact
of the one time expense assessed to SAIF-insured institutions for purposes of
recapitalizing the SAIF. Likewise, peak earnings during fiscal 1998 were in part
supported by a non-recurring gain realized from the sale of a branch office.
First Palmetto's core or recurring earnings are largely derived through net
interest income, which ranged from a low of 3.33 percent of average assets
during fiscal 1999 to a high of 3.60 percent of average assets during fiscal
1997. The recent downward trend in the Bank's net interest margin has been
attributable to a reduction in the interest income ratio, which declined from
7.79 percent during fiscal 1997 to 7.29 percent during fiscal 1999.
Comparatively, a less notable decline was experienced in the Holding Company's
interest expense ratio, which equaled 4.20 percent and 3.96 percent during
fiscal years 1997 and 1999, respectively. The less significant reduction in the
interest expense ratio was in part attributable to the Holding Company's greater
utilization of borrowings during the past two fiscal years, which tend to be a
higher costing source of funds than deposits. Overall, the Bank's net interest
rate spread declined from 3.51 percent during fiscal 1997 to 3.17 percent during
fiscal 1999.
Loan loss provisions have had a varying impact on First Palmetto's earnings
over the past five fiscal years, ranging from a low of 0.16 percent of average
assets during fiscal 1995 to a high of 0.56 percent of average assets during
fiscal 1998. For fiscal 1999, loss provisions
<PAGE>
RP Financial, LC
Page 1.5
Table 1.2
First Palmetto Financial Corporation
Historical Income Statements
(Amount and Percent of Avg. Assets)(1)
<TABLE>
<CAPTION>
For the Fiscal Year Ended September 30,
-------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999
---------------- ---------------- ----------------- ----------------- -----------------
Amount Pct Amount Pct Amount Pct Amount Pct Amount Pct
------ --- ------ --- ------ --- ------ --- ------ ---
($000) (%) ($000) (%) ($000) (%) ($000) (%) ($000) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest Income $22,794 7.54% $26,016 7.89% $27,902 7.79% $31,026 7.72% $33,210 7.29%
Interest Expense (12,483) -4.13% (14,186) -4.30% (15,025) -4.20% (17,275) -4.30% (18,052) -3.96%
-------- ------ -------- ------ -------- ------ -------- ------ -------- ------
Net Interest Income $10,311 3.41% $11,830 3.59% $12,877 3.60% $13,751 3.42% $15,158 3.33%
Provision for Loan Losses (482) -0.16% (885) -0.27% (1,428) -0.40% (2,262) -0.56% (1,144) -0.25%
-------- ------ -------- ------ -------- ------ -------- ------ -------- ------
Net Interest Income after Provisions $9,829 3.25% $10,945 3.32% $11,449 3.20% $11,489 2.86% $14,014 3.07%
Other Income 1,692 0.56% 2,152 0.65% 2,209 0.62% 1,973 0.49% 1,938 0.43%
Operating Expense (8,105) -2.68% (9,180) -2.78% (8,846) -2.47% (8,861) -2.21% (9,432) -2.07%
-------- ------ -------- ------ -------- ------ -------- ------ -------- ------
Net Operating Income $3,416 1.13% $3,917 1.19% $4,812 1.34% $4,601 1.15% $6,520 1.43%
Non-Operating Income
Net gain(loss) on sale of loans $39 0.01% $103 0.03% $173 0.05% $515 0.13% $664 0.15%
Gain on sale of investments 0 0.00% 0 0.00% 254 0.07% 632 0.16% 0 0.00%
Other non-operating income(loss) 203 0.07% (813) -0.25% 0 0.00% 784 0.20% 0 0.00%
-------- ------ -------- ------ -------- ------ -------- ------ -------- ------
Net Non-Operating Income 242 0.08% (710) -0.22% 427 0.12% 1,931 0.48% 664 0.15%
Net Income Before Tax $3,658 1.21% $3,207 0.97% $5,239 1.46% $6,532 1.63% $7,184 1.58%
Income Taxes (1,300) -0.43% (1,195) -0.36% (1,909) -0.53% (2,354) -0.59% (2,581) -0.57%
Change in Acctg. Principle --- 0.00% --- 0.00% --- 0.00% -- 0.00% -- ---
-------- ------ -------- ------ -------- ------ -------- ------ -------- ------
Net Income (Loss) $2,358 0.78% $2,012 0.61% $3,330 0.93% $4,178 1.04% $4,603 1.01%
Adjusted Earnings
Net Income Before Ext. Items $2,358 0.78% $2,012 0.61% $3,330 0.93% $4,178 1.04% $4,603 1.01%
Addback: Non-Operating Losses 0 0.00% 813 0.25% 0 0.00% 0 0.00% 0 0.00%
Deduct: Non-Operating Gains (242) -0.08% (103) -0.03% (427) -0.12% (1,931) -0.48% (664) -0.15%
Tax Effect Non-Op. Items(2) 90 0.03% (263) -0.08% 158 0.04% 714 0.18% 246 0.05%
-------- ------ -------- ------ -------- ------ -------- ------ -------- ------
Adjusted Net Income $2,206 0.73% $2,459 0.75% $3,061 0.85% $2,961 0.74% $4,185 0.92%
</TABLE>
- ----------------------------
(1) Ratios are as a percent of average assets.
(2) Assumes tax rate of 37.0 percent.
Sources: First Palmetto's audited and unaudited financial statements.
<PAGE>
RP Financial, LC.
Page 1.6
established by the Holding Company equaled 0.25 percent of average assets.
Higher loss provisions were established during fiscal 1998 to address loan
growth, with such growth providing for a shift in First Palmetto's loan
portfolio composition towards a higher concentration of higher risk commercial
real estate and non-mortgage loans. An increase in net charge-offs further
contributed to the increase in loss provisions that were established during
fiscal 1998.
Non-interest operating income has been a fairly steady contributor to First
Palmetto's earnings, ranging from a low of 0.43 percent of average assets during
fiscal 1999 to a high of 0.65 percent of average assets during fiscal 1996. The
recent decline in the non-interest operating income ratio reflects the impact of
First Palmetto's asset growth through wholesale leveraging, in which growth in
mortgage-backed securities funded by borrowings does not generate additional
non-interest operating income. Additionally, the Holding Company has experienced
a decline in loan servicing income during the past two fiscal years. Service
charges, loan servicing income and miscellaneous sources of income constitute
the primary components of First Palmetto's non-interest operating income.
Gains have become a more significant factor in First Palmetto's earnings
during recent years, reaching a peak of $1.9 million, or 0.48 percent of average
assets, during fiscal 1998. Gains recorded during fiscal 1998 were realized from
the sale of fixed rate loan originations to the secondary market ($515,000), the
sale of the investment securities portfolio maintained as available for sale
($632,000), and the sale of a branch office located in Beaufort ($784,000). The
gains realized from the sale of investment securities and the branch office are
viewed as non-recurring income, while gains generated from the sale of fixed
rate loan origination have been an ongoing activity for the Holding Company.
However, gains realized through secondary market activities are subject to a
certain degree of volatility as well, given the dependence of such gains on the
interest rate environment and resulting demand for longer term fixed rate loans.
During fiscal 1999, gains on the sale of loans increased to $664,000, or 0.15
percent of average assets, as the relatively low interest rate environment that
prevailed during fiscal years 1998 and 1999 has supported strong demand in
general for longer term 1-4 family fixed rate loans.
As noted previously, First Palmetto's fiscal 1996 earnings were depressed
by a one-time assessment fee of $813,000 (pre-tax) to recapitalize the SAIF
fund.
Operating expenses have in general declined as a percent of average assets,
equaling 2.07 percent of average assets during fiscal 1999. The decline in the
operating expense ratio has been in part supported by growth of the balance
sheet through wholesale leveraging, as mortgage-backed securities funded by
borrowings generally would not have a material impact on operating expenses.
While declining as a percent of average assets, First Palmetto's operating
expenses have increased in absolute terms due to additional expenses resulting
from the branches acquired, the increased emphasis on lending diversification
which has resulted in additional employee and other costs, and normal
inflationary increases in operating expenses. A $132,000 prepayment penalty
recorded in connection with the prepayment of $8.0 million of FHLB advances was
another factor that accounted for the increase in First Palmetto's operating
expenses during fiscal 1999. Over the past five fiscal years, the Bank has also
incurred the expense of amortizing the deposit base intangible, which was booked
in connection with the branch offices acquired in fiscal 1994 and 1995. Overall,
the Holding Company's operating expenses increased from $8.1 million during
fiscal 1995 to $9.4 million during fiscal 1999.
<PAGE>
RP Financial, LC.
Page 1.7
Asset Quality
- -------------
Table 1.3 displays various credit risk measures at the end of the last
three fiscal years. Non-performing assets ("NPAs"), which consist of
non-accruing loans and real estate owned ("REO"), declined from $1.3 million at
fiscal year end 1997 to $924,000 at fiscal year end 1999. The decline was
attributable to reductions in both non-accruing loans and real estate owned.
Non-performing assets declined from 0.35 percent of assets at fiscal year end
1997 to 0.19 percent of assets at fiscal year end 1999, reflecting the impact of
the reduction in the non-performing assets balance as well as asset growth. As
of September 30, 1999, the Holding Company maintained loan loss allowances of
$5.4 million, equal to 1.72 percent of net loans receivable and 589.39 percent
of NPAs. Management continually reviews the adequacy of the allowance for loan
losses, considering such factors as trends in delinquent loans, loan portfolio
composition, history of charge-offs, and general economic trends that may
influence borrowers ability to repay and the value of collateral.
Table 1.3
First Palmetto Financial Corporation
Non-Performing Assets
<TABLE>
<CAPTION>
9/30/97 9/30/98 9/30/99
------- ------- -------
($000) ($000) ($000)
<S> <C> <C> <C>
Non-Accruing Loans $981 $636 $836
Real Estate Owned(Net) 332 500 88
------- ------- -------
Total Non-Performing Assets $1,313 $1,136 $924
Non-Performing Assets/Total Assets 0.35% 0.26% 0.19%
Non-Accrual Loans/Net Loans Rec 0.39% 0.24% 0.26%
MEMO:
Allowance for Loan Losses $3,009 $4,649 $5,446
Loan Loss Allow./Non-Accrual Loans 306.73% 730.97% 651.44%
Loan Loss Allowances/NPAs 229.17% 409.24% 589.39%
Loan Loss Allowances/Net Loans Receivable 1.19% 1.76% 1.72%
</TABLE>
Sources: First Palmetto's audited financial statements.
Interest Rate Risk
- ------------------
The Bank's earnings performance is subject to interest rate risk to the
extent that interest-bearing liabilities with short and intermediate-term
maturities reprice more rapidly or on a different basis than interest-earning
assets, particularly in a rising rate environment. The Holding Company manages
exposure to rising interest rates through: (1) originating for portfolio
adjustable rate mortgage loans and loans with call provisions of five years or
less; (2) originating fixed rate residential mortgage loans to conform to FHLMC
documentation, thereby facilitating the sale of such loans into the secondary
market; (3) emphasizing growth of commercial real estate and non-mortgage loans,
which generally have short-term maturities or adjustable rates; (4) purchasing
investment securities with maturities of five years or less; (5)
<PAGE>
RP Financial, LC.
Page 1.8
reducing the interest rate sensitivity of interest-bearing liabilities through
the use of longer term FHLB advances; and (6) offering attractive rates on
certificates of deposit with maturities of more than 12 months.
The Bank measures exposure to changes in interest rates by calculating the
asset/liability gap ratio, or the difference between the amount of
interest-earning assets and interest-bearing liabilities to be repriced during
a specific time period. Based on the Bank's calculations, as of September 30,
1999, the Bank's cumulative asset/liability gap in the one year time frame
equaled negative 26.2 percent of interest-earning assets. As part of its efforts
to manage interest rate risk, the Bank also monitors its net portfolio value
("NPV"), a methodology adopted by the OTS to assist the Bank in assessing
interest rate risk. As of September 30, 1999, an analysis of the Bank's interest
rate risk as measured by the estimated changes in the NPV of its assets and
liabilities indicated that a 2.0 percent instantaneous and sustained increase in
interest rates would result in a 1.0 percent decline in the Bank's NPV. This
figure is within limits set by the Board of Directors and the Bank's interest
rate risk exposure was considered to be acceptable under the OTS regulations.
Legal Proceedings
- -----------------
Other than the routine legal proceedings that occur in First Palmetto's
ordinary course of business, the Holding Company is not involved in litigation
which is expected to have a material impact on the Holding Company's financial
condition or operations.
<PAGE>
RP Financial, LC.
Page 2.1
II. OPERATING ENVIRONMENT AND MARKET AREA
Stock Market Conditions
- -----------------------
The fair market value of a financial institution is partially
dependent upon investor perception of the future operating environment and
growth opportunities for the entire industry. In general, thrift issues have
underperformed the overall stock market during 1999. Low inflation readings and
the favorable stock market environment in general sustained the positive trend
in thrift issues during early-January 1999. While thrift profitability for the
fourth quarter generally met expectations, concern of a downturn in the economy
in 1999 and resulting slower revenue growth pulled financial stocks lower in
mid-January. From late-January through most of February 1999 investors continued
to show little interest in thrift issues, as indicated by the depressed trading
levels of thrift issues and the general downward trend exhibited in thrift
market prices. Concerns of higher interest rates, increased credit risk exposure
and slower revenue growth were noted as factors contributing to the lackluster
performance of thrift stocks.
Thrift stocks rebounded somewhat during the first half of March 1999,
as a slight increase in the February unemployment rate eased inflation concerns
and provided for a rally in the bond market. Bank and thrift stocks also
benefitted from a revival of takeover speculation, which intensified following
Fleet Financial's proposed acquisition of BankBoston in mid-March. Concerns of
first quarter earnings coming under pressure due to spread compression and
growing unease of credit quality deterioration translated into a declining
market for thrift stocks in late-March and early-April. Thrift stocks rebounded
modestly during mid and late-April, as first quarter earnings generally met
expectations and interest rates declined on the strength of low inflation
readings and a larger than expected interest rate cut by Europe's central bank.
Comparatively, the threat of re-emerging inflation and higher interest rates
translated into a general downward trend in thrift prices during May.
The general decline exhibited in thrift prices during May 1999
continued during the first half of June, reflecting expectations that the strong
economic growth would prompt the Federal Reserve to raise interest rates. Thrift
prices recovered modestly in late-June and early-July, as bond prices
strengthened after the Federal Reserve adopted a neutral stance towards future
interest rate increases. While second quarter earnings were generally favorable
for the thrift sector, thrift stocks edged lower in mid-July. Concern of credit
quality deterioration was noted as a factor contributing to the pull back in
thrift prices, as an increasing number of financial institutions experienced an
increase in non-performing assets during the second quarter.
After trading in a narrow range in late-July 1999, the downturn in
thrift stocks became more pronounced in early-August. Higher interest rates
prompted by news of stronger than expected job growth in July fueled the decline
in thrift prices. Thrift stocks rebounded briefly in mid-August, as the 30-year
bond dipped below 6.0 percent on the release of favorable inflation data.
However, the unfavorable market for thrift stocks returned in late-August and
early-September, reflecting growing concerns of weak third quarter earnings for
financial stocks. Despite generally favorable inflation readings indicated by
the August economic data, renewed interest rate concerns translated into further
losses in financial stocks through mid-September. Most notably, indexes of bank
stocks traded at their lows for the year, highlighting the unfavorable trend in
interest rates and growing concerns of disappointing
<PAGE>
RP Financial, LC.
Page 2.2
third quarter earnings. Growing concerns of deterioration in commercial loan
quality, particularly if interest rates move higher, furthered the decline in
thrift and bank prices during the balance of September.
Thrift stocks moved higher in early-October 1999 on bargain hunting
and sentiment that the Federal Reserve would elect not to raise interest rates.
However, the rally in thrift stocks stalled, following the Federal's adoption of
a tightening bias at its early-October meeting. The downward slide in thrift
prices was halted by passage of financial modernization legislation in
late-October, which eliminated barriers for banking and securities firms from
fully entering each other businesses. Most of the rise in thrift prices was
realized in the larger capitalization issues, reflecting expectations that
securities and insurance companies would become buyers of thrift institutions
with large customer bases. Comparatively, the legislation had very little
impact, if any, on small-cap thrifts. The rally in thrift issues extended into
the first half of November, as interest rate worries eased on signs of subdued
inflation. Comparatively, profit taking and higher interest rates prompted a
sell-off in thrift prices during the second half of November. Thrift stocks
briefly strengthened in early- December, as interest rates declined on news of
low inflation data indicated in the November employment report. Fourth quarter
profitability concerns cut short the rally in thrift prices in mid-December. On
December 17, 1999, the SNL Index for all publicly-traded thrifts closed at
557.7, a decline of 17.8 percent from one year ago. Comparatively, the SNL Index
for all Southeast publicly-traded thrifts closed at 600.2 on December 17, 1999,
an increase of 6.7 percent from one year ago.
Economic and Interest Rate Environment
- --------------------------------------
The future success of the Holding Company's operations is partially
dependent upon various national and local economic trends. Trends in the
national economy have generally been favorable during 1999, as the national
economy has experienced strong growth with low inflation, despite significant
job creation and low unemployment rates by historical standards. The federal
government continues to operate with a budget surplus, and expectations are for
a rising surplus in the next five years, which has reduced the demand for
dollars in the capital markets. Unemployment rates remained below 5 percent
throughout the first eleven months of 1999, declining to 4.1% as of November
1999. Further gains in the stock market have also contributed to the robustness
of the domestic economy, with the DJIA posting a year-to-date increase of 22.6
percent through December 17, 1999.
During mid-year 1999, inflationary pressures became more noticeable. A
tight labor market, growth in the manufacturing sector and a high level of
consumer confidence were noted as factors that heightened concerns that the pace
of economic growth was becoming too fast and could lead to accelerating
inflationary pressures. The rapid pace of economic growth prompted the Federal
Reserve to hike interest rates in late-June and late-August, with each action
by the Federal Reserve providing for a 0.25 percent increase in the federal
funds rate. While the Federal Reserve held interest rates steady at its October
meeting, it left open the option of raising them when they meet in November. The
adoption of a tightening stance by the Federal Reserve served to push interest
rates higher through most of October. Bond prices strengthened in late-October
and early- November on economic data which indicated that inflation remained
tame, despite strong job growth and low unemployment. The bond market rally
stalled in mid-November, following the Federal Reserve's decision to raise
interest rates for the third time in 1999. The third rate hike by the Federal
Reserve amounted to a 0.25 rate increase, with the Federal Reserve adopting a
neutral bias toward future rate increases for the balance of 1999. Bond prices
slumped further in late-November, as strong post-Thanksgiving
<PAGE>
RP Financial, LC.
Page 2.3
retail sales raised the possibility of increasing inflation. News of low
inflation data indicated in the November employment report supported a decline
in interest rates during early-December. Comparatively, interest rates moved
higher in mid-December, reflecting the impact of rising oil prices and strong
economic growth. As of December 17, 1999, one-and thirty-year U.S. government
bonds were yielding 5.91 percent and 6.38 percent, respectively, versus
comparative year ago rates of 4.44 percent and 5.01 percent.
Primary Market Area
- -------------------
The Holding Company's future growth opportunities and financial strength in
part depend on the growth in the local market areas served. Accordingly, the
market area's demographic trends, economic condition and competitive environment
have been examined to help analyze how the various market conditions could
affect the Holding Company's ability to raise deposits and originate loans. The
Holding Company currently conducts operations from its headquarters office in
Camden, (Kershaw County), and sixteen branch office locations throughout central
and northeastern South Carolina in the counties of Kershaw, Richland, Lexington,
Lancaster, Chesterfield, Darlington, Lee, Clarendon, and Horry. The Holding
Company considers the various counties in which branch offices are located to be
the primary market area for lending and depository activities.
The Holding Company's market area encompasses a broad area of the state of
South Carolina, including the central portion of the state, (the Columbia
metropolitan area) and the more rural areas to the northeast of Columbia. The
Holding Company is headquartered in Camden, Kershaw County, approximately 30
miles northeast of Columbia. Other branches are located in counties contiguous
to Kershaw County, and two branches are located close to the North
Carolina/South Carolina border. Columbia is the state capital and the largest
metropolitan area in the state. Thus, the primary market area includes both
urban and rural areas, with corresponding population and economic
characteristics.
The Holding Company's market area counties reveal a broad range of
population bases and population growth rates. The largest population centers are
located in Richland and Lexington Counties, the location of the Columbia area.
The remaining market area counties are generally more rural and sparsely
populated, with Kershaw, Chesterfield, Lee and Clarendon Counties all having
populations of less than 50,000 residents as of 1999. Population growth rates
were also relatively varied, with Horry, Kershaw, Lexington and Lee Counties
posting growth rates that were as strong or stronger than the state's annual
population growth rate of 1.2 percent from 1990 through 1999. From 1990 through
1999, Chesterfield and Darlington Counties exhibited the lowest annual
population growth rates, with both counties posting annual population growth
rates of 0.8 percent. The population growth trends experienced by the various
market area counties during the 1990s are expected to generally continue over
the next five years. The 1999 age distribution figures for First Palmetto's
primary market reveal that the two larger market area counties (Lexington and
Lee) have a relatively high proportion of residents between 25 and 44 years of
age, a favorable demographic characteristic for financial institutions. In
concert with the various urban and rural settings of the primary market area,
median household and per capita income figures were generally higher in the more
urban areas and lower in the more rural areas.
The primary market area economy is relatively broad based and due to its
overall size, in general, reflects the economy of the state of South Carolina.
Consistent with the U.S. employment data, service jobs represent the largest
employment sector in South Carolina. As
<PAGE>
RP Financial, LC.
Page 2.4
shown in Table 2.1, wholesale/retail trade, manufacturing and government
comprised the other major employment sectors in the state of South Carolina.
Table 2.1
South Carolina Employment Sectors
Employment Sectors % of Labor Force
------------------ ----------------
Services 25.1%
Wholesale/Retail Trade 22.7
Manufacturing 17.5
Government 16.9
Construction 6.5
Finance, Insurance, Real Estate 6.0
Transportation and Public Utilities 4.1
Other 1.2
---
100.0
Source: REIS DataSource.
Recent unemployment data for the market area is shown in Table 2.2. The
data reveals that the state of South Carolina maintains an unemployment rate
higher than the national average and, in contrast to the U.S., South Carolina's
unemployment experienced an increase from a year ago. Unemployment rates for the
primary market area counties ranged from a low of 2.2 percent in Lexington
County to a high of 9.6 percent in Lee County. Unemployment trends were mixed
for the primary market area counties from October 1998 to October 1999, as five
of the counties posted higher unemployment rates, two counties posted lower
unemployment rates and the unemployment rates for two of the counties were
unchanged.
Table 2.2
First Palmetto Financial Corporation
Unemployment Data
<TABLE>
<CAPTION>
Region October 1998 October 1999
------ ------------ ------------
<S> <C> <C>
United States 4.2% 3.8%
South Carolina 4.1 4.9
Kershaw County 5.5 5.0
Richland County 2.4 2.7
Chesterfield County 8.2 7.2
Darlington County 7.3 7.5
Lee County 8.9 9.6
Horry County 3.5 3.5
Clarendon County 6.3 8.7
Lancaster County 4.5 4.5
Lexington County 1.9 2.2
</TABLE>
Source: Bureau of Labor Statistics.
<PAGE>
RP Financial, LC.
Page 2.5
Competition and Market Share
- ----------------------------
The competitive environment for financial institution products and services
on a national, regional and local level can be expected to become even more
competitive in the future. Consolidation in the banking and thrift industries
provides economies of scale to the larger institutions, while the increased
presence of investment options provides consumers with attractive investment
alternatives to financial institutions.
The Holding Company's retail deposit base is closely tied to the economic
fortunes of the counties in which the branches area located. Table 2.3 displays
deposit market trends between June 30, 1996 and June 30, 1998 for the primary
market area, with additional data presented for the state of South Carolina. The
data indicates that on average South Carolina based branches of commercial banks
and thrifts recorded positive deposit growth during the two-year period covered
in Table 2.3, with commercial banks gaining deposit market share at the expense
of thrifts.
Within the primary market area, all counties recorded increases in deposits
except for Kershaw and Lexington Counties. In general, First Palmetto's deposit
growth rates exceeded the comparative growth rates for commercial banks and
thrifts operating in the primary market area counties, which served to increase
its market share of deposits. First Palmetto's relatively strong deposit growth
was facilitated by offering highly competitive deposit rates in certain targeted
growth markets. Kershaw County represented the Holding Company's most notable
market presence, with First Palmetto maintaining a 45.5 percent market share of
thrift and bank deposits held in the county. As of June 30, 1998, First Palmetto
was the only savings institution with branches in the counties of Kershaw, Lee,
Clarendon and Lancaster. Commercial banks maintained a majority of the deposits
held by banks and thrifts in all of the counties shown in Table 2.3.
<PAGE>
------------------------------------------------------------------
Table 2.3
First Palmetto Financial Corporation
Deposit Summary
------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
As of June 30,
-----------------------------------------------------------------------------
1996 1998 Deposit
------------------------------------ -------------------------------------
Market Number of Market No. of Growth Rate
Deposits Share Branches Deposits Share Branches 1996-1998
-------- ------ --------- -------- ------ -------- -----------
(Dollars In Thousands) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
State of South Carolina $30,859,861 100.0% 1,175 $34,125,941 100.0% 1,183 5.2%
Commercial Banks/Savings Banks 25,072,731 81.2% 973 28,088,811 82.3% 981 5.8%
Savings Institutions 5,787,130 18.8% 202 6,037,130 17.7% 202 2.1%
Kershaw County $377,499 100.0% 16 $373,065 100.0% 16 -0.6%
Commercial Banks/Savings Banks 226,744 60.1% 11 203,182 54.5% 11 -5.3%
Savings Institutions 150,755 39.9% 5 169,883 45.5% 5 6.2%
First Palmetto 150,755 39.9% 5 169,883 45.5% 5 6.2%
Richland County $3,189,801 100.0% 93 $3,807,017 100.0% 98 9.2%
Commercial Banks/Savings Banks 3,156,361 99.0% 89 3,764,119 98.9% 94 9.2%
Savings Institutions 33,440 1.0% 4 42,898 1.1% 4 13.3%
First Palmetto 29,316 0.9% 3 32,047 0.8% 3 4.6%
Chesterfield County $282,454 100.0% 13 $287,978 100.0% 13 1.0%
Commercial Banks/Savings Banks 213,037 75.4% 11 227,839 79.1% 11 3.4%
Savings Institutions 69,417 24.6% 2 60,139 20.9% 2 -6.9%
First Palmetto 21,468 7.6% 1 23,506 8.2% 1 4.6%
Darlington County $384,209 100.0% 19 $397,503 100.0% 19 1.7%
Commercial Banks/Savings Banks 315,048 82.0% 16 328,165 82.6% 16 2.1%
Savings Institutions 69,161 18.0% 3 69,338 17.4% 3 0.1%
First Palmetto 20,692 5.4% 1 21,386 5.4% 1 1.7%
Lee County $81,241 100.0% 5 $94,060 100.0% 4 7.6%
Commercial Banks/Savings Banks 65,385 80.5% 4 74,428 79.1% 3 6.7%
Savings Institutions 15,856 19.5% 1 19,632 20.9% 1 11.3%
First Palmetto 15,856 19.5% 1 19,632 20.9% 1 11.3%
Horry County $2,000,182 100.0% 77 $2,433,850 100.0% 84 10.3%
Commercial Banks/Savings Banks 1,555,836 77.8% 60 1,915,474 78.7% 66 11.0%
Savings Institutions 444,346 22.2% 17 518,376 21.3% 18 8.0%
First Palmetto 0 0.0% 0 16,284 0.7% 1 N/M
Clarendon County $146,614 100.0% 6 $164,943 100.0% 6 6.1%
Commercial Banks/Savings Banks 134,773 91.9% 5 142,208 86.2% 5 2.7%
Savings Institutions 11,841 8.1% 1 22,735 13.8% 1 38.6%
First Palmetto 11,841 8.1% 1 22,735 13.8% 1 38.6%
Lancaster County $233,045 100.0% 9 $258,305 100.0% 9 5.3%
Commercial Banks/Savings Banks 222,580 95.5% 8 246,053 95.3% 8 5.1%
Savings Institutions 10,465 4.5% 1 12,252 4.7% 1 8.2%
First Palmetto 10,465 4.5% 1 12,252 4.7% 1 8.2%
Lexington County $1,350,698 100.0% 51 $1,213,292 100.0% 43 -5.2%
Commercial Banks/Savings Banks 1,313,882 97.3% 48 1,148,016 94.6% 38 -6.5%
Savings Institutions 36,816 2.7% 3 65,276 5.4% 5 33.2%
First Palmetto 1,055 0.1% 1 23,514 1.9% 2 372.1%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Sources: FDIC; OTS.
<PAGE>
RP Financial, LC.
Page 3.1
III. COMPARATIVE ANALYSIS VERSUS PEER GROUP
An analysis of the Holding Company in relation to a group of comparable
publicly-traded savings institutions (the "Peer Group") is essential to
providing a basis for valuation. Factors determining market value, such as
financial condition and recent operating results, can be readily assessed in
relation to the Peer Group, and market pricing of the Peer Group will then be
used to assess the market value of the Holding Company's stock.
Selection of Peer Group
- -----------------------
We consider the appropriate Peer Group to be comprised of those
institutions which are publicly-traded and are listed on an exchange or are
NASDAQ-listed, since the trading activity for these stocks is regular and
reported. Non-listed institutions are considered inappropriate since the trading
activity is typically highly irregular in terms of frequency and price, and
often the spreads between bid and asked prices are very wide due to illiquidity
and/or the closely-held nature of the stock. We excluded institutions subject to
rumored or announced acquisition or thrifts with unusual characteristics,
including mutual holding companies, due to distortion in their pricing. From the
universe of publicly-traded thrift institutions, we selected ten institutions
sharing characteristics similar to those of the Holding Company. The Peer Group
companies necessarily differ from the Company by their publicly-traded status,
which implies greater liquidity of their stock as well as increased scrutiny by
the investment community.
The publicly-traded savings institution selection criteria discussed below
led to the selection of the Peer Group companies listed in Table 3.1:
. Operating strategy - we targeted Peer Group companies employing a
similar operating strategy as the Holding Company to provide
comparability with respect to risk profile and composition of
earnings; i.e., institutions which emphasized mortgage lending funded
by retail deposits.
. Financial characteristics - we targeted Peer Group companies with
generally similar balance sheet composition, capitalization and
profitability, particularly institutions which maintained a strong
return on equity.
. Size - we targeted Peer Group companies with similar asset size to
reflect comparable resource availability, which we defined as having
assets ranging from $200 million to $750 million.
The above criteria were the major factors in determining comparability
since they affect the expected rates of return, risk, and overall attractiveness
of a given institution from an investor's perspective. On average, the Peer
Group establishes a good basis from which to derive a public equivalent value
for the Holding Company's shares, after incorporating adjustments to account for
certain financial and other differences.
<PAGE>
RP FINANCIAL, LC.
------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
Table 3.1
Peer Group of Publicly-Traded Thrifts
December 16, 1999(1)
Primary Operating Total Fiscal Conv. Stock Market
Ticker Financial Institution Exchg. Market Strat.(2) Assets Offices Year Date Price Value
------ ----------------------------------- ------ ----------------- -------- ------ ------- ---- ----- ------ -------
($) ($Mil)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HOMF Home Fed Bancorp of Seymour IN OTC Southern IN Thrift 748 16 06-30 01/88 23.00 112
CFCP Coastal Fin. Corp. of SC OTC SC Thrift 713 10 09-30 09/90 12.00 81
FSPT FirstSpartan Fin. Corp. of SC OTC Northwestern SC Thrift 541 10 06-30 07/97 17.72 67
FFKY First Fed. Fin. Corp. of KY OTC Central KY Thrift 500 12 06-30 07/87 22.63 90
WFI Winton Financial Corp. of OH AMEX Cincinnati OH R.E. 466 5 09-30 08/88 12.88 57
PVFC PVF Capital Corp. of OH OTC Cleveland OH R.E. 466 9 06-30 12/92 10.63 47
COOP Cooperative Bancshares of NC OTC Eastern NC Thrift 389 16 12-31 08/91 10.69 30
SBAN SouthBanc Shares Inc. of SC OTC Northwest SC Thrift 365 J 6 09-30 04/98 20.75 67
NEIB Northeast Indiana Bncrp of IN OTC Northeast IN Thrift 245 3 12-31 06/95 12.88 23
UFBS Union Fincl. Bancshares of SC OTC Northwest SC Thrift 206 4 09-30 / 8.38 11
NOTES: (1) Or most recent date available (M=March, S=September, D=December, J=June, E=Estimated, and P=Pro Forma)
(2) Operating strategies are: Thrift=Traditional Thrift, M.B.=Mortgage Banker, R.E.=Real Estate Developer,
Div.=Diversified, and Ret.=Retail Banking.
(3) FDIC savings bank institution.
Source: Corporate offering circulars, data derived from information
published in SNL Securities Quarterly Thrift Report, and financial
reports of publicly-traded thrifts.
Date of Last Update: 12/16/99
</TABLE>
<PAGE>
RP Financial, LC.
Page 3.3
Balance Sheet Composition and Growth Rates
- ------------------------------------------
Table 3.2 displays comparative balance sheet measures for the Holding
Company and the Peer Group. First Palmetto's and the Peer Group's ratios reflect
balances as of September 30, 1999, unless otherwise indicated for the Peer Group
companies.
The interest-earning asset compositions for the Holding Company and the
Peer Group were somewhat similar, with loans constituting the bulk of
interest-earning assets for both First Palmetto and the Peer Group. First
Palmetto's loans-to-assets ratio of 66.6 percent was less than the comparative
Peer Group ratio of 79.3 percent. Comparatively, the Holding Company's cash and
investments-to-assets ratio of 30.3 percent was higher than the Peer Group's
ratio of 16.8 percent. Overall, First Palmetto's interest-earning assets
comprised 96.9 percent of assets, which was slightly higher than the Peer
Group's comparative ratio of 96.1 percent.
First Palmetto's funding liabilities reflected a funding strategy that was
somewhat similar to that of the Peer Group's funding composition. The Holding
Company's deposits equaled 76.0 percent of assets, which was above the Peer
Group average of 68.5 percent. Comparatively, borrowings were utilized to a
slightly greater degree by the Peer Group, as the Holding Company and the Peer
Group posted borrowings-to-assets ratios of 17.4 percent and 21.1 percent,
respectively. Overall, the future borrowing capacities for First Palmetto and
the Peer Group were considered to be comparable. Total interest-bearing
liabilities maintained by the Holding Company and the Peer Group, as a percent
of assets, equaled 93.4 percent and 89.6 percent, respectively. The Peer Group's
lower level of interest-bearing liabilities was supported by maintenance of a
higher capital position.
A key measure of balance sheet strength for a thrift institution is its
interest-earning assets-to-interest-bearing liabilities ("IEA/IBL") ratio. The
Peer Group's IEA/IBL ratio of 107.3 percent exceeded First Palmetto's ratio of
103.7 percent, which was supported by the Peer Group's stronger capital position
and resulting lower level of interest-bearing liabilities.
The equity capital level of the Holding Company equaled 5.9 percent of
assets, versus a comparative ratio of 9.4 percent for the Peer Group. Tangible
equity for the Holding Company and the Peer Group equaled 5.8 percent and 9.0
percent of assets, respectively. While both the Holding Company and the Peer
Group maintained surpluses relative to minimum capital requirements, the Peer
Group's stronger capital position implies greater leverage potential and greater
capacity to absorb potential losses.
The growth rate section of Table 3.2 shows annual growth rates for key
balance sheet items. Asset growth rates of positive 9.7 percent and positive 8.9
percent were posted by the Holding Company and the Peer Group, respectively.
Growth in loans (20.1 percent growth rate) accounted for the Holding Company's
asset growth, which was partially offset by a decline in cash and investments
(negative 7.7 percent growth rate). The negative growth rate for cash and
investments was attributable to repayments on the mortgage-backed securities
portfolio and utilization of a a portion of those funds to fund loan growth. The
decline in First Palmetto's mortgage-backed securities portfolio was partially
offset by growth in investment securities and cash and cash equivalents.
Similarly, the Peer Group's asset growth was primarily sustained by loan growth
(10.3 percent growth rate), although the Peer Group also exhibited positive
growth in cash and investments (5.8 percent growth rate). The Holding Company's
asset growth rates would tend to support greater earnings growth relative to the
Peer Group's measures; however, given First Palmetto's current level of capital,
the Peer Group's leverage capacity is considered to be greater than First
Palmetto's.
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
Table 3.2
Balance Sheet Composition and Growth Rates
Comparable Institution Analysis
As of September 30, 1999
Balance Sheet as a Percent of Assets
----------------------------------------------------------------------------------------
Cash & MBS & Borrowed Subd. Net Goodwill Tng Net MEMO:
Equivalents Invest Loans Deposits Funds Debt Worth & Intang Worth Pref.Stock
----------- ------ ------ -------- -------- ------- -------- -------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial
- ------------------------
September 30, 1999 2.3 28.0 66.6 76.0 17.4 0.0 5.9 0.1 5.8 0.0
SAIF-Insured Thrifts 3.2 24.2 68.8 66.6 19.7 0.1 11.9 0.3 11.6 0.0
State of SC 3.8 15.0 77.4 63.2 20.2 0.0 15.5 0.2 15.3 0.0
Comparable Group Average 2.9 13.9 79.3 68.5 21.1 0.0 9.4 0.4 9.0 0.0
Mid-West Companies 2.0 10.4 84.5 68.7 20.9 0.0 9.2 0.5 8.7 0.0
South-East Companies 3.9 17.4 74.1 68.3 21.2 0.0 9.5 0.3 9.2 0.0
Comparable Group
----------------
Mid-West Companies
------------------
FFKY First Fed. Fin. Corp. of KY 3.2 8.8 83.1 80.3 7.5 0.0 11.0 2.1 8.8 0.0
HOMF Home Fed Bancorp of Seymour IN 2.4 13.5 79.4 75.7 14.4 0.0 9.1 0.2 8.9 0.0
NEIB Northeast Indiana Bncrp of IN 2.2 13.9 81.5 49.1 40.2 0.0 10.5 0.0 10.5 0.0
PVFC PVF Capital Corp. of OH 1.6 6.6 89.6 71.7 17.4 0.0 8.6 0.0 8.6 0.0
WFI Winton Financial Corp. of OH 0.4 9.1 88.7 66.9 25.0 0.0 6.9 0.1 6.8 0.0
South-East Companies
--------------------
CFCP Coastal Fin. Corp. of SC 3.4 27.5 66.2 56.1 36.8 0.0 5.8 0.0 5.8 0.0
COOP Cooperative Bancshares of NC 1.9 12.9 82.6 79.1 12.9 0.0 7.6 0.0 7.6 0.0
FSPT FirstSpartan Fin. Corp. of SC 6.7 5.2 84.1 75.4 10.9 0.0 12.4 0.0 12.4 0.0
SBAN SouthBanc Shares Inc. of SC(1) 4.6 24.4 64.9 61.7 22.6 0.0 14.6 0.0 14.6 0.0
UFBS Union Fincl. Bancshares of SC 2.9 17.0 72.6 69.2 23.0 0.0 7.2 1.3 5.9 0.0
Balance Sheet Annual Growth Rates
----------------------------------------------------------------
MBS, Cash & Borrows. Net Tng Net
Assets Investments Loans Deposits &Subdebt Worth Worth
------- ----------- ------ -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial
------------------------
September 30, 1999 9.68 -7.74 20.09 5.18 36.81 12.17 13.89
SAIF-Insured Thrifts 11.18 5.08 14.10 7.66 19.11 -4.20 -4.67
State of SC 6.29 -9.88 12.31 6.86 17.72 -14.20 -15.15
Comparable Group Average 8.89 5.84 10.27 5.28 29.26 -2.97 -3.41
Mid-West Companies 13.63 19.35 12.77 3.72 51.61 8.87 9.32
South-East Companies 4.14 -7.67 7.77 6.84 6.92 -14.81 -16.13
Comparable Group
----------------
Mid-West Companies
------------------
FFKY First Fed. Fin. Corp. of KY 6.90 -9.65 10.16 4.84 61.38 -1.07 0.54
HOMF Home Fed Bancorp of Seymour IN 3.46 28.38 -1.18 4.13 4.62 -1.89 -1.79
NEIB Northeast Indiana Bncrp of IN 17.16 74.60 9.70 -7.44 82.50 4.37 4.37
PVFC PVF Capital Corp. of OH 8.98 -2.96 9.70 -0.23 57.93 23.45 23.45
WFI Winton Financial Corp. of OH 31.64 6.40 35.45 17.32 NM 19.52 20.04
South-East Companies
--------------------
CFCP Coastal Fin. Corp. of SC 10.79 8.70 11.12 3.46 24.69 8.95 8.95
COOP Cooperative Bancshares of NC 0.02 -15.81 3.19 2.34 -9.08 -4.88 -4.88
FSPT FirstSpartan Fin. Corp. of SC 2.02 -22.03 4.90 8.23 NM -44.10 -44.10
SBAN SouthBanc Shares Inc. of SC(1) -0.76 -25.48 14.56 10.64 0.59 -30.34 -30.34
UFBS Union Fincl. Bancshares of SC 8.65 16.29 5.06 9.56 11.49 -3.67 -10.30
Regulatory Capital
-------------------------------------------------------------
Tangible Core Reg.Cap.
----------- ------ ---------
<S> <C> <C> <C>
First Palmetto Financial
------------------------
September 30, 1999 5.68 5.68 10.46
SAIF-Insured Thrifts 13.44 10.41 20.15
State of SC 136.01 8.30 14.35
Comparable Group Average 8.88 8.72 14.54
Mid-West Companies 9.03 9.03 13.99
South-East Companies 8.76 8.54 14.86
Comparable Group
----------------
Mid-West Companies
------------------
FFKY First Fed. Fin. Corp. of KY 9.15 9.15 14.51
HOMF Home Fed Bancorp of Seymour IN 8.49 8.49 11.61
NEIB Northeast Indiana Bncrp of IN 9.46 9.46 15.85
PVFC PVF Capital Corp. of OH NM NM NM
WFI Winton Financial Corp. of OH NM NM NM
South-East Companies
--------------------
CFCP Coastal Fin. Corp. of SC 6.29 6.29 12.64
COOP Cooperative Bancshares of NC NM 7.65 13.17
FSPT FirstSpartan Fin. Corp. of SC 10.79 10.79 17.27
SBAN SouthBanc Shares Inc. of SC(1) 11.30 11.30 18.95
UFBS Union Fincl. Bancshares of SC 6.66 6.66 12.29
(1) Financial information is for the quarter ending June 30, 1999.
Source: Audited and unaudited financial statements, corporate reports and offering circulars, and RP Financial, LC.
calculations. The information provided in this table has been obtained from sources we believe are reliable, but we
cannot guarantee the accuracy or completeness of such information.
Copyright (c) 1999 by RP Financial, LC.
</TABLE>
<PAGE>
RP Financial, LC.
Page 3.5
The Holding Company and the Peer Group exhibited comparatively higher
borrowing growth rates compared to their respective deposit growth rates, with
the Holding Company and the Peer Group posting borrowing growth rates of 36.8
percent and 29.3 percent, respectively. The Peer Group's borrowings growth rate
was somewhat understated, as the "NM" borrowings growth rates shown for two of
the Peer Group companies were attributable to their growth rates exceeding 100
percent. Deposit growth rates were very comparable for the Holding Company and
the Peer Group, equaling 5.2 percent and 5.3 percent, respectively. Capital
growth rates posted by the Holding Company and the Peer Group equaled positive
12.2 percent and negative 3.0 percent, respectively, with First Palmetto's
stronger growth rate being primarily facilitated by maintenance of a lower
capital position and the implementation of stock repurchase programs by some of
the Peer Group companies.
Income and Expense Components
- -----------------------------
First Palmetto and the Peer Group reported net income to average assets
ratios of 1.01 percent and 1.08 percent, respectively (see Table 3.3), based on
the Holding Company's and the Peer Group's earnings for the twelve months ended
September 30, 1999, unless otherwise indicated for the Peer Group companies. The
Peer Group's higher return was supported by higher non-interest operating income
and lower loss provisions, while higher net gains and lower operating expenses
represented comparative earnings advantages for the Holding Company. The Peer
Group and First Palmetto exhibited comparable net interest margins.
Net interest income to average assets posted by First Palmetto and the Peer
Group equaled 3.33 percent and 3.37 percent,respectively, with the Peer Group
posting both a higher interest income ratio and a higher interest expense ratio
in comparison to the Holding Company's ratios. In another key area of core
earnings strength, the Holding Company maintained a lower level of operating
expenses than the Peer Group. For the period covered in Table 3.3, the Holding
Company and the Peer Group recorded operating expense to average assets ratios
of 2.07 percent and 2.22 percent, respectively. First Palmetto's lower operating
expense ratio was in part supported by maintenance of a slightly lower number of
employees for its asset size, as compared to the Peer Group companies on
average. Assets per full time equivalent employee equaled $3.7 million for the
Holding Company, versus a comparative measure of $3.6 million for the Peer
Group.
When viewed together, net interest income and operating expenses provide
considerable insight into a thrift's earnings strength, since those sources of
income and expenses are typically the most prominent components of earnings and
are generally more predictable than losses and gains realized from the sale of
assets or other non-recurring activities. In this regard, as measured by their
expense coverage ratios (net interest income divided by operating expenses), the
Holding Company's earnings strength was slightly more favorable than the Peer
Group's. Expense coverage ratios posted by First Palmetto and the Peer Group
equaled 1.61x and 1.52x, respectively. An expense coverage ratio of greater than
1.0x indicates that an institution is able to sustain pre-tax profitability
without having to rely on non-interest sources of income.
Sources of non-interest operating income were a larger contributor to the
Peer Group's earnings, with such income amounting to 0.67 percent and 0.43
percent of the Peer Group's and First Palmetto's average assets, respectively.
The Peer Group's higher level of non-interest operating income was supported by
income realized from real estate operations, as well as miscellaneous sources of
income derived largely from retail banking activities. Taking
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Table 3.3
Income as a Percent of Average Assets and Yields, Costs, Spreads
Comparable Institution Analysis
For the Twelve Months Ended September 30, 1999
<TABLE>
<CAPTION>
Net Interest Income Other Income G&A/Other Exp.
---------------------------- ------------------- ----------------
Loss NII Total
Net Provis. After Loan R.E. Other Other G&A Goodwill
Income Income Expense NII on IEA Provis. Fees Oper. Income Income Expense Amort.
------ ------ ------- ------ ------- ------- ---- ----- ------ ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial
- ------------------------
September 30, 1999 1.01 7.29 3.96 3.33 0.25 3.07 0.06 0.00 0.37 0.43 2.00 0.07
SAIF-Insured Thrifts 0.84 7.07 3.89 3.18 0.12 3.05 0.11 0.01 0.38 0.50 2.31 0.03
State of SC 0.96 7.21 3.66 3.55 0.12 3.42 0.08 0.03 0.46 0.57 2.22 0.02
Comparable Group Average 1.08 7.41 4.04 3.37 0.10 3.27 0.09 0.11 0.48 0.67 2.19 0.03
Mid-West Companies 1.28 7.58 4.22 3.36 0.09 3.27 0.06 0.19 0.43 0.68 2.06 0.04
South-East Companies 0.89 7.24 3.86 3.38 0.11 3.27 0.11 0.04 0.52 0.67 2.33 0.03
Comparable Group
- ----------------
Mid-West Companies
- ------------------
FFKY First Fed. Fin. Corp. of KY 1.32 7.43 3.83 3.60 0.07 3.53 0.00 0.00 0.83 0.83 2.20 0.17
HOMF Home Fed Bancorp of Seymour IN 1.39 7.30 4.00 3.30 0.15 3.15 0.16 0.06 0.65 0.88 2.10 0.01
NEIB Northeast Indiana Bncrp of IN 1.17 7.58 4.17 3.41 0.12 3.29 0.12 -0.01 0.25 0.36 1.82 0.00
PVFC PVF Capital Corp. of OH 1.80 8.00 4.41 3.59 0.08 3.51 0.00 0.86 0.25 1.11 2.24 0.00
WFI Winton Financial Corp. of OH 0.70 7.61 4.69 2.92 0.04 2.88 0.04 0.02 0.15 0.21 1.92 0.01
South-East Companies
- --------------------
CFCP Coastal Fin. Corp. of SC 1.14 7.35 4.00 3.35 0.11 3.24 0.30 0.00 0.35 0.64 2.27 0.00
COOP Cooperative Bancshares of NC 0.67 7.31 4.26 3.05 0.06 2.99 0.06 -0.01 0.20 0.25 2.23 0.00
FSPT FirstSpartan Fin. Corp. of SC 0.87 7.21 3.49 3.72 0.13 3.59 0.19 0.00 0.38 0.57 2.45 0.00
SBAN SouthBanc Shares Inc. of SC(1) 0.89 7.18 3.65 3.53 0.17 3.36 0.00 0.19 1.24 1.43 2.36 0.00
UFBS Union Fincl. Bancshares of SC 0.85 7.16 3.92 3.24 0.05 3.18 -0.01 -0.01 0.46 0.45 2.33 0.14
<CAPTION>
Non-Op. Items Yields, Costs, and Spreads
-------------- -------------------------
MEMO: MEMO:
Net Extrao. Yield Cost Yld-Cost Assets/ Effective
Gains Items On Assets Of Funds Spread FTE Emp. Tax Rate
------- ------- --------- -------- ------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial
- ------------------------
September 30, 1999 0.15 0.00 7.78 4.32 3.46 3,717 35.93
SAIF-Insured Thrifts 0.09 0.00 7.22 4.49 2.74 4,327 35.65
State of SC -0.05 0.00 7.47 4.57 2.90 4,532 35.63
Comparable Group Average 0.03 0.00 7.70 4.56 3.13 3,565 35.57
Mid-West Companies 0.01 0.00 7.83 4.73 3.10 3,857 37.22
South-East Companies 0.04 0.00 7.56 4.40 3.16 3,273 33.92
Comparable Group
- ----------------
Mid-West Companies
- ------------------
FFKY First Fed. Fin. Corp. of KY -0.02 0.00 7.82 4.39 3.43 3,122 32.83
HOMF Home Fed Bancorp of Seymour IN 0.36 0.00 7.64 4.46 3.18 2,821 38.75
NEIB Northeast Indiana Bncrp of IN 0.00 0.00 7.77 4.72 3.06 4,903 36.33
PVFC PVF Capital Corp. of OH -0.05 0.00 8.16 4.95 3.21 3,530 35.81
WFI Winton Financial Corp. of OH -0.22 0.00 7.76 5.12 2.64 4,908 42.38
South-East Companies
- --------------------
CFCP Coastal Fin. Corp. of SC 0.18 0.00 7.54 4.32 3.23 3,241 36.26
COOP Cooperative Bancshares of NC 0.04 0.00 7.51 4.64 2.87 3,193 36.55
FSPT FirstSpartan Fin. Corp. of SC -0.27 0.00 7.44 4.28 3.16 3,584 44.68
SBAN SouthBanc Shares Inc. of SC(1) 0.07 0.00 7.62 4.49 3.12 3,410 16.00
UFBS Union Fincl. Bancshares of SC 0.18 0.00 7.70 4.28 3.42 2,938 36.09
</TABLE>
(1) Financial information is for the quarter ending June 30, 1999.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP Financial, LC.
Page 3.7
non-interest operating income into account in comparing the Holding Company's
and the Peer Group's earnings, First Palmetto's efficiency ratio (operating
expenses, net of amortization of intangibles, as a percent of the sum of
non-interest operating income and net interest income) of 53.2 percent was
slightly more favorable than the Peer Group's efficiency ratio of 54.2 percent.
Loan loss provisions had a larger impact on the Holding Company's earnings,
amounting to 0.25 percent and 0.10 percent of average assets for First Palmetto
and the Peer Group, respectively. The higher loss provisions established by the
Holding Company could in part be attributed to its more significant
diversification into higher risk types of lending.
Net gains realized from the sale of investments and loans were a larger
factor in First Palmetto's earnings, with such gains amounting to 0.15 percent
and 0.03 percent of average assets for the Holding Company and the Peer Group,
respectively. Typically, gains generated from the sale of loans and investments
are viewed as earnings with a relatively high degree of volatility and, thus,
are substantially discounted in the evaluation of an institution's core
earnings. In the case of First Palmetto, the gains were the result of selling
fixed rate loans into the secondary market, which is an ongoing activity for the
Holding Company. Accordingly, such gains warrant some consideration as a core
earnings factor for the Holding Company, but are still viewed as a more volatile
source of income than income generated through the net interest margin and
non-interest operating income.
The Holding Company's and the Peer Group's pre-tax earnings were similarly
impacted by taxes, as First Palmetto and the Peer Group posted effective tax
rates of 35.93 percent and 35.57 percent, respectively.
Loan Portfolio Composition
- --------------------------
Table 3.4 presents data related to the loan composition of First Palmetto
and the Peer Group. In comparison to the Holding Company, the Peer Group's loan
portfolio composition reflected a higher concentration of 1-4 family permanent
mortgage loans and mortgage-backed securities (55.2 percent of assets versus
41.2 percent for the Holding Company). The Peer Group's higher ratio was the
result of maintaining a higher concentrations of 1-4 family permanent mortgage
loans, which was partially offset by the higher concentration of mortgage-backed
securities maintained by First Palmetto. Loans serviced for others by the
Holding Company and the Peer Group reflected comparable balances of $140.7
million and $149.7 million, respectively, with the Peer Group's higher balance
translating into a slightly higher balance of loan servicing intangibles as
well.
In comparison to the Peer Group, the Bank exhibited a greater degree of
lending diversification into higher risk types of loans. Commercial real
estate/multi-family loans represented the most significant area of
diversification for the Holding Company, with such loans comprising 27.9 percent
of First Palmetto's assets. Commercial real estate/multi-family loans also
represented the primary area of lending diversification for the Peer Group,
equaling 12.6 percent of the Peer Group's assets. Consumer loans were also a
more significant area of lending diversification for the Holding Company, while
the Peer Group's loan portfolio composition reflected greater diversification
into construction/land loans. The Holding Company and the Peer Group maintained
comparable levels of commercial business loans as percent of assets.
Notwithstanding the Holding Company's greater diversification into higher risk
types of lending, First Palmetto's risk weighted assets-to-assets ratio of 61.60
percent was slightly lower than the Peer Group's ratio of 63.66 percent. The
Holding Company's lower
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
<CAPTION>
Table 3.4
Loan Portfolio Composition and Related Information
Comparable Institution Analysis
As of September 30, 1999
Portfolio Composition as a Percent Assets
---------------------------------------------------------
1-4 Constr. 5+Unit Commerc. RWA/ Serviced Servicing
Institution MBS Family & Land Comm RE Business Consumer Assets For Others Assets
- ----------- ------ ------ ------ ------ ------ -------- ------ ---------- ------
(%) (%) (%) (%) (%) (%) (%) ($000) ($000)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial 12.59 28.64 0.95 27.87 5.09 5.28 61.60 140,700 628
SAIF-Insured Thrifts 12.33 45.91 3.65 9.50 4.95 2.57 55.70 750,350 10,582
State of SC 9.17 53.71 9.16 5.62 3.67 2.17 57.85 150,871 1,396
Comparable Group Average 6.12 49.07 7.46 12.62 4.96 3.54 63.66 149,745 789
Comparable Group
- ----------------
CFCP Coastal Fin. Corp. of SC 23.89 39.86 11.01 9.94 2.13 2.59 54.58 99,393 0
COOP Cooperative Bancshares of NC 0.00 66.80 0.35 11.10 1.35 1.86 60.65 76,825 0
FFKY First Fed. Fin. Corp. of KY 0.32 58.43 2.33 6.03 9.82 3.93 64.49 0 0
FSPT FirstSpartan Fin. Corp. of SC 0.01 63.28 10.43 4.35 2.01 2.57 65.43 111,349 1,164
HOMF Home Fed Bancorp of Seymour IN 1.29 43.24 6.76 15.85 6.28 7.54 76.29 460,831 1,980
NEIB Northeast Indiana Bncrp of IN 1.22 49.60 4.15 8.50 8.85 9.02 63.55 2,392 0
PVFC PVF Capital Corp. of OH 0.37 35.09 18.94 30.67 0.58 0.23 74.01 277,288 799
SBAN SouthBanc Shares Inc. of SC(1) 19.45 37.14 11.33 6.73 6.31 3.71 61.04 62,972 101
UFBS Union Fincl. Bancshares of SC 11.51 52.72 4.44 1.58 8.33 2.71 57.30 257,906 3,842
WFI Winton Financial Corp. of OH 3.11 44.59 4.83 31.40 3.96 1.27 59.27 148,491 0
</TABLE>
(1) Financial information is for the quarter ending June 30, 1999.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP Financial, LC.
Page 3.9
risk weighted assets ratio was supported by maintenance of a higher
concentration of assets in lower risk weighted cash and investments, in
comparison to the Peer Group's asset composition which reflected a comparatively
higher concentration of loans. Overall, the Holding Company's and the Peer
Group's risk weighted assets-to-assets ratios were both above the comparative
ratio of 55.70 percent for all publicly-traded thrifts.
Credit Risk
- -----------
The Holding Company's credit risk exposure appears to be somewhat lower
than the Peer Group's, as indicated by First Palmetto's higher reserve coverage
ratios and lower ratios of non-performing loans and non-performing assets. As
shown in Table 3.5, the Holding Company's non-performing loans/loans and
non-performing assets/assets ratios of 0.26 percent and 0.19 percent,
respectively, were below the Peer Group's comparative ratios of 0.50 percent and
0.52 percent. Loss reserve ratios were also stronger for the Holding Company, as
First Palmetto maintained a higher level of loss reserves as a percent of non-
performing assets (589.4 percent versus 152.5 percent for the Peer Group) and as
a percent of loans (1.72 percent versus 0.76 percent for the Peer Group). The
Holding Company's higher reserve coverage ratio as a percent of loans was
warranted by its greater degree of diversification into higher risk types of
lending. In comparison to the Peer Group, First Palmetto recorded a higher level
of net loan charge-offs than the Peer Group, with net loan charge-offs as a
percent of loans receivable equaling 0.11 percent and 0.04 percent for the
Holding Company and the Peer Group, respectively. Overall, both the Holding
Company's and the Peer Group's credit quality measures were considered to be
representative of fairly limited credit risk exposure.
Interest Rate Risk
- ------------------
Table 3.6 reflects various key ratios highlighting the relative interest
rate risk exposure of the Holding Company versus the Peer Group companies. In
terms of balance sheet composition, First Palmetto's interest rate risk
characteristics were considered to be slightly less favorable than the Peer
Group's. In particular, First Palmetto's lower capital position and lower
IEA/IBL ratio indicate a greater dependence on the yield-cost spread to sustain
the net interest margin. However, First Palmetto's lower level of non-interest
earning assets was a positive consideration in terms of capacity to generate net
interest income.
To analyze interest rate risk associated with the net interest margin, we
reviewed quarterly changes in net interest income as a percent of average assets
for First Palmetto and the Peer Group. In general, the relative fluctuations in
both the Holding Company's and the Group's net interest income-to-assets ratios
were considered to be fairly limited, with First Palmetto's quarterly changes in
net interest income exhibiting slightly greater volatility compared to the Peer
Group's measures.
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
<CAPTION>
Table 3.5
Credit Risk Measures and Related Information
Comparable Institution Analysis
As of September 30, 1999 or Most Recent Date Available
NPAs & Rsrves/
REO/ 90+Del/ NPLs/ Rsrves/ Rsrves/ NPAs & Net Loan NLCs/
Institution Assets Assets Loans Loans NPLs 90+Del Chargoffs Loans
- ----------- ------ ------ ------ ------ ------ -------- --------- ----------
(%) (%) (%) (%) (%) (%) ($000) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial 0.02 0.19 0.26 1.72 651.44 589.39 347 0.11
SAIF-Insured Thrifts 0.22 0.56 0.65 0.85 236.88 170.85 267 0.12
State of SC 0.22 0.39 0.38 0.82 277.46 197.20 77 0.04
Comparable Group Average 0.37 0.52 0.50 0.76 206.25 152.47 57 0.04
Comparable Group
- ----------------
CFCP Coastal Fin. Corp. of SC 0.01 0.21 0.31 1.39 449.34 421.09 83 0.00
COOP Cooperative Bancshares of NC 0.05 0.42 0.02 0.40 NA 80.30 17 0.02
FFKY First Fed. Fin. Corp. of KY 0.11 NA 0.59 0.52 88.15 NA 41 0.04
FSPT FirstSpartan Fin. Corp. of SC 0.06 0.36 0.32 0.66 203.47 153.33 3 0.00
HOMF Home Fed Bancorp of Seymour IN 1.35 0.73 0.54 0.74 136.74 81.26 108 0.07
NEIB Northeast Indiana Bncrp of IN 0.00 0.55 0.64 0.78 121.18 116.39 50 0.10
PVFC PVF Capital Corp. of OH 0.82 1.07 1.19 0.71 59.49 58.96 38 0.04
SBAN SouthBanc Shares Inc. of SC(1) 1.01 0.64 0.80 1.10 137.29 111.75 52 0.09
UFBS Union Fincl. Bancshares of SC 0.12 0.21 0.12 0.56 454.35 196.71 29 0.08
WFI Winton Financial Corp. of OH 0.11 NA NA NA NA NA 150 0.00
</TABLE>
(1) Financial information is for the quarter ending June 30, 1999.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- ------------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
<CAPTION>
Table 3.6
Interest Rate Risk Measures and Net Interest Income Volatility
Comparable Institution Analysis
As of September 30, 1999 or Most Recent Date Available
Balance Sheet Measures
--------------------------
Non-Earn. Quarterly Change in Net Interest Income
Equity/ IEA/ Assets/ -----------------------------------------------------------
Institution Assets IBL Assets 09/30/99 06/30/99 03/31/99 12/31/98 09/30/98 06/30/98
- ----------- ------ ------ ------ -------- -------- -------- -------- -------- ---------
(%) (%) (%) (change in net interest income is annualized in basis points)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
First Palmetto Financial 5.8 103.7 3.1 13 11 2 1 -9 -22
SAIF-Insured Thrifts 11.6 112.1 3.7 -1 5 2 -4 -4 1
State of SC 15.3 117.8 3.8 -7 13 -1 -3 4 13
Comparable Group Average 9.0 107.4 3.9 -4 8 0 -4 -4 9
Comparable Group
- ----------------
CFCP Coastal Fin. Corp. of SC 5.8 104.6 2.9 -3 -1 33 -1 -18 1
COOP Cooperative Bancshares of NC 7.6 105.9 2.6 1 5 9 5 -4 13
FFKY First Fed. Fin. Corp. of KY 8.8 108.3 4.9 3 -9 14 -20 -8 3
FSPT FirstSpartan Fin. Corp. of SC 12.4 111.2 4.0 -27 1 -3 -4 -18 -2
HOMF Home Fed Bancorp of Seymour IN 8.9 105.7 4.8 2 13 -11 -1 -7 -7
NEIB Northeast Indiana Bncrp of IN 10.5 109.4 2.4 -16 -7 12 0 -9 -4
PVFC PVF Capital Corp. of OH 8.6 110.0 2.1 2 20 -12 7 8 -25
SBAN SouthBanc Shares Inc. of SC(1) 14.6 111.4 6.1 NA 23 -19 -37 34 88
UFBS Union Fincl. Bancshares of SC 5.9 100.4 7.5 27 24 -30 7 -1 13
WFI Winton Financial Corp. of OH 6.8 106.8 1.8 -22 6 6 1 -16 7
</TABLE>
(1) Financial information is for the quarter ending June 30, 1999.
NA=Change is greater than 100 basis points during the quarter.
Source: Audited and unaudited financial statements, corporate reports and
offering circulars, and RP Financial, LC. calculations. The information
provided in this table has been obtained from sources we believe are
reliable, but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP Financial, LC.
Page 4.1
IV. APPRAISAL OF FAIR MARKET VALUE
Recent Trading Activity in the Holding Company's Stock
- ------------------------------------------------------
The Holding Company's stock is not listed on an established exchange, and
it is our understanding that typically there has not been an active trading
market for the Holding Company's stock. In addition, the stock is somewhat
closely held as a relatively small number of shareholders own a material portion
of the stock. During calendar year-to-date 1999, the Holding Company's shares
have traded at prices ranging from $65.00 to $75.00 per share, with the most
recent trades occurring at $75.00 per share (September 29, 1999). As the recent
trading activity involves only a small fraction of outstanding shares, our
valuation of the Holding Company shares was derived mainly through standard
valuation methodologies.
Standard Valuation Methodologies
- --------------------------------
Our valuation approach focused on first deriving a value for the Holding
Company's shares on a comparable publicly-traded basis, and then applying a
discount to the comparable public value to account for the closely held nature
of the stock and the lack of marketability resulting from the illiquidity
characteristics of the common stock. To derive the publicly-traded equivalent
value for the stock we applied common approaches of valuation: the market value
approach -- specifically price-to-earnings (P/E) and price-to-book value (P/B)
multiples -- and the discounted earnings approach. Exhibit IV-1 presents pricing
ratios and financial data for all publicly-traded savings institutions, based
on market prices as of December 17, 1999 and financial data as of September 30,
1999. Limited consideration was also given to the Holding Company's recent
common stock trading history.
In the valuation of most ongoing financial institution entities, the P/E
approach is generally the best indicator of long-term value for a stock. In this
valuation, we carefully considered the P/E approach. In view of historical
earnings volatility in the thrift and banking industries, the investment
community also relies on the price/book value approach. For financial
institutions, the P/B ratio typically reflects capital adequacy, risk
assessments and anticipated equity growth, reflecting the expected "return on
equity". We have modified this approach to focus on tangible book value (the
P/TB ratio) to exclude intangible assets such as goodwill, which is consistent
with industry practice. The discounted earnings method was also utilized in
determining First Palmetto's value; however, this valuation method is typically
weighted less as a valuation technique among thrift stock investors, in light of
the historical volatility of thrift industry earnings and the greater emphasis
generally placed on the P/E and P/B approaches.
The applications of the valuation techniques discussed below will also take
into account our comparative analysis relative to the Peer Group in deriving
value.
<PAGE>
RP Financial, LC.
Page 4.2
Market Value Approach
- ---------------------
1. P/E Approach
------------
Derivation of value pursuant to the P/E approach requires an earnings
estimate and a supportable P/E multiple. The Holding Company's reported earnings
for the twelve months ended September 30, 1999 equaled $4.603 million. In
deriving the Holding Company's core or recurring earnings, consideration was
given to the comparatively high amount of gains recorded on the sale of loans
during fiscal 1999, as compared to the prior two fiscal years, and the
non-recurring expense resulting from the prepayment of FHLB advances. The
penalty resulting from the prepayment of FHLB advances amounted to $132,000.
During the past three fiscal years, loan sale gains recorded by First Palmetto
have averaged $451,000, versus gains of $664,000 during fiscal 1999.
Accordingly, in establishing core earnings, First Palmetto's reported earnings
were adjusted to reflect the average amount of loan sale gains recorded during
past three fiscal years. As shown below, after tax effecting the adjustments at
an assumed effective marginal tax rate of 35.9 percent, First Palmetto's core
earnings were determined to equal $4.551 million.
Amount
------
($000)
Net income $4,603
Adjustment for prepayment penalty(1) 85
Adjustment for loan sale gains(1) (137)
----
Core earnings estimate $4,551
(1) Tax effected at 35.9 percent.
We derived our P/E multiple from the Peer Group analyzed in Chapter III.
Using stock prices as of December 17, 1999, the Peer Group exhibited an average
P/E multiple of 12.30 times core earnings (see Table 4.1). Based on the
comparative analysis contained in Chapter III, we concluded that the Holding
Company's core earnings strength was comparable to the Peer Group's and,
therefore, no premium or discount was required relative to the Peer Group's core
P/E multiple. Accordingly, we applied an earnings multiple of 12.30 times to the
Holding Company's trailing twelve month core EPS of $6.43, which resulted in an
indicated public equivalent value of $79.09 per share pursuant to this approach,
before incorporating marketability adjustments.
2. Price/Tangible Book Value
-------------------------
Derivation of value pursuant to the P/TB market value approach requires a
tangible book value per share figure and an appropriate P/TB ratio. As of
September 30, 1999, the Holding Company's tangible stockholders' equity equaled
$27.7 million The average P/TB ratio for the Peer Group equaled 137.21 percent.
We determined that First Palmetto's lower equity-to-assets ratio and resulting
lower leverage capacity were negated by its higher return on equity. Therefore,
no discount or premium was required in deriving the Holding Company's value
under this approach. Thus, we applied a P/TB ratio of 137.2 percent to the
Holding Company's tangible book value per share of $38.93, which resulted in an
indicated public equivalent value of $53.41 per share pursuant to this approach,
before incorporating marketability adjustments.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
<TABLE>
<CAPTION>
Table 4.1
Market Pricing Comparatives
Prices As of December 17, 1999
Market Per Share Data
Capitalization _______________
------------------ Core Book Pricing Ratios(3)
Price/ Market 12-Mth Value/ --------------------------------------
Financial Institution Share(1) Value EPS(2) Share P/E P/B P/A P/TB P/CORE
- --------------------- -------- ------- ------- ------- ------- ------- ------- ------- ------
($) ($Mil) ($) ($) (X) (%) (%) (%) (x)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 12.48 131.34 0.91 12.85 13.50 100.31 11.38 105.15 14.43
State of SC 14.82 76.93 1.02 13.13 15.07 121.74 16.23 124.20 16.20
Comparable Group Average 15.16 58.42 1.29 12.06 12.30 130.96 11.97 137.21 12.30
Mid-West Companies 16.40 65.65 1.50 11.73 11.89 142.11 12.91 151.18 11.62
South-East Companies 13.91 51.19 1.09 12.38 12.72 119.80 11.04 123.24 12.98
Comparable Group
- ----------------
Mid-West Companies
- ------------------
FFKY First Fed. Fin. Corp. of KY 22.63 89.91 1.62 13.80 14.14 163.99 18.00 203.51 13.97
HOMF Home Fed Bancorp of Seymour IN 23.00 112.03 1.75 13.99 10.90 164.40 14.99 168.25 13.14
NEIB Northeast Indiana Bncrp of IN 12.88 22.99 1.47 14.40 8.76 89.44 9.38 89.44 8.76
PVFC PVF Capital Corp. of OH 10.63 46.61 1.86 9.14 5.81 116.30 10.00 116.30 5.72
WFI Winton Financial Corp. of OH 12.88 56.72 0.78 7.30 19.82 176.44 12.17 178.39 16.51
South-East Companies
- --------------------
CFCP Coastal Fin. Corp. of SC 12.00 81.01 1.02 6.11 10.53 196.40 11.36 196.40 11.76
COOP Cooperative Bancshares of NC 10.69 29.52 0.90 10.73 11.49 99.63 7.58 99.63 11.88
FSPT FirstSpartan Fin. Corp. of SC 17.72 67.12 1.48 17.75 14.41 99.83 12.40 99.83 11.97
SBAN SouthBanc Shares Inc. of SC 20.75 66.94 0.97 16.47 20.34 125.99 18.35 125.99 21.39
UFBS Union Fincl. Bancshares of SC 8.38 11.37 1.06 10.86 6.81 77.16 5.53 94.37 7.91
<CAPTION>
Dividends(4) Financial Characteristics(6)
----------------------- -----------------------------------------------------
Reported Core
Amount/ Payout Total Equity/ NPAs/ --------------- ---------------
Financial Institution Share Yield Ratio(5) Assets Assets Assets ROA ROE ROA ROE
- --------------------- -------- ----- -------- ------ ------- ------ ------- ------- ------- -------
($) (%) (%) ($Mil) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts 0.35 2.83 34.63 1,522 11.89 0.56 0.82 7.50 0.77 7.01
State of SC 0.50 3.40 44.74 612 15.45 0.39 0.96 8.80 1.00 8.49
Comparable Group Average 0.46 2.94 35.21 464 9.36 0.52 1.08 11.72 1.06 11.40
Mid-West Companies 0.46 2.83 32.26 485 9.21 0.78 1.28 13.66 1.27 13.65
South-East Companies 0.45 3.04 38.16 443 9.51 0.37 0.88 9.77 0.86 9.16
Comparable Group
- ----------------
Mid-West Companies
- ------------------
FFKY First Fed. Fin. Corp. of KY 0.72 3.18 44.44 500 10.98 NA 1.32 11.28 1.33 11.42
HOMF Home Fed Bancorp of Seymour IN 0.55 2.39 31.43 748 9.12 0.73 1.39 14.84 1.15 12.31
NEIB Northeast Indiana Bncrp of IN 0.40 3.11 27.21 245 10.48 0.55 1.17 10.41 1.17 10.41
PVFC PVF Capital Corp. of OH 0.32 3.01 17.20 466 8.60 1.07 1.81 21.97 1.84 22.33
WFI Winton Financial Corp. of OH 0.32 2.48 41.03 466 6.90 NA 0.70 9.80 0.84 11.76
South-East Companies
- --------------------
CFCP Coastal Fin. Corp. of SC 0.27 2.25 26.47 713 5.78 0.21 1.14 19.26 1.02 17.23
COOP Cooperative Bancshares of NC 0.00 0.00 0.00 389 7.61 0.42 0.66 8.47 0.64 8.20
FSPT FirstSpartan Fin. Corp. of SC 1.00 5.64 67.57 541 12.42 0.36 0.87 4.95 1.04 5.95
SBAN SouthBanc Shares Inc. of SC 0.60 2.89 61.86 365 14.56 0.64 0.90 5.17 0.85 4.92
UFBS Union Fincl. Bancshares of SC 0.37 4.42 34.91 206 7.17 0.21 0.85 11.02 0.73 9.50
</TABLE>
(1) Average of High/Low or Bid/Ask price per share.
(2) EPS (estimate core basis) is based on actual trailing twelve month data,
adjusted to omit non-operating items (including the SAIF assessment) on a
tax effected basis.
(3) P/E = Price to earnings; P/B = Price to book;
P/A = Price to assets; P/TB = Price to tangible book value; and
P/CORE = Price to estimated core earnings.
(4) Indicated twelve month dividend, based on last quarterly dividend declared.
(5) Indicated dividend as a percent of trailing twelve month estimated
core earnings.
(6) ROA (return on assets) and ROE (return on equity) are indicated ratios based
on trailing twelve month earnings and average equity and assets balances.
(7) Excludes from averages those companies the subject of actual or rumored
acquisition activities or unusual operating characteristics.
Source: Corporate reports, offering circulars, and RP Financial, LC.
calculations. The information provided in this report has been obtained
from sources we believe are reliable, but we cannot guarantee the
accuracy or completeness of such information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP Financial, LC.
Page 4.4
Discounted Earnings Approach
- ----------------------------
The discounted earnings approach derives a per share value from perpetuity.
In this approach to valuation, two items of information are required: (1) a
reasonable and predictable earnings stream; and (2) an appropriate discount
rate. In deriving a predictable and reasonable earnings stream, we have examined
the Holding Company's reported earnings for the twelve months ended September
30, 1999. As set forth above, after adjusting First Palmetto's reported earnings
to account for the comparatively higher amount of loan sale gains recorded in
fiscal 1999, First Palmetto's core earnings were determined to equal $4.551
million or $6.43 per share. We did not apply an earnings growth factor given the
historical industry volatility in profitability. We applied a discount rate
which represents what we concluded would be a return required by the investment
community based on the Peer Group's return, adjusted upwards for the previously
referenced risks inherent in the Holding Company's stock. The 9.5 percent
discount rate utilized in this analysis was based on two indicators of required
return -- (1) the average of the inverse of the Peer Group's P/E ratio based on
core earnings, and (2) a risk-free rate of return (5 year U.S. Treasury constant
maturity yield), adjusted for perceived risk in holding the Holding Company's
stock. Applying this discount rate to the Holding Company's earnings per common
share of $6.43 resulted in a value of $67.68 per share ($6.43 divided by 9.5
percent) before marketability adjustments.
Valuation Adjustment for Marketability Discount
- -----------------------------------------------
The key difference between a publicly-traded company and a thinly-traded
company is that the price of a thinly-traded company is typically discounted
from its publicly-traded counterparts. Accordingly, the limited trading in the
stock qualifies the Holding Company as a thinly-traded company, and warrants
consideration in the valuation for a discount due to lack of marketability of
the stock.
Pro Forma Impact of Reverse Stock Split
- ---------------------------------------
The Board of Directors of First Palmetto is proposing to effect a 1-for-125
reverse stock split of the common stock and to issue shares of preferred stock
in lieu of a fractional share interests to any First Palmetto stockholder who,
following the reverse stock split, would hold less than one share of common
stock of record in any discrete account. The pro forma impact of the reverse
stock split on the Holding Company's operations was taken into consideration in
this valuation. First Palmetto's operations are not expected to be materially
impacted by the reverse stock split and, thus, we concluded that for valuation
proposes no adjustment in the Holding Company's fair market value was warranted
for the proposed reverse stock split.
Conclusion
- ----------
The three valuation approaches utilized herein indicated a range of
publicly-traded equivalent values of $53.41 to $79.08 per share, before
incorporating a valuation adjustment for marketability of the stock. Based on
the publicly-traded equivalent values and an adjustment for marketability of the
stock, it is our opinion that as of December 17, 1999, the value of the common
stock shares of the Holding Company was $75.00 per share.
<PAGE>
EXHIBITS
<PAGE>
LIST OF EXHIBITS
IV-1 Thrift Stock Prices as of December 17, 1999
V-1 RP Financial Firm Qualifications Statement
<PAGE>
Exhibit IV-1
Thrift Stock Prices as of December 17, 1999
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
52 Week (1) % Change From
Shares Market --------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. SAIF-Insured Thrifts(no MHC)
---------------------------------------------
SAIF-Insured Thrifts(258) 12.81 9,245 141.1 16.95 11.77 12.93 -0.88 -12.86 -13.69
NYSE Traded Companies(8) 17.38 81,659 1,641.3 24.18 15.24 17.54 -1.02 -1.14 -3.40
AMEX Traded Companies(24) 12.12 3,220 36.9 15.39 11.43 12.22 -0.91 -13.98 -13.46
NASDAQ Listed OTC Companies(226) 12.70 7,099 94.6 16.83 11.67 12.82 -0.87 -13.20 -14.10
California Companies(17) 15.01 31,371 674.1 19.04 12.77 15.07 0.31 1.18 1.26
Florida Companies(7) 8.56 23,852 175.5 11.67 7.82 8.68 -0.54 -7.56 -10.42
Mid-Atlantic Companies(48) 12.50 12,792 159.8 16.56 11.47 12.61 -1.08 -11.82 -13.51
Mid-West Companies(118) 12.52 6,116 90.7 16.80 11.57 12.63 -0.76 -15.99 -16.19
New England Companies(9) 14.59 7,280 135.5 19.09 13.73 14.67 -0.81 -12.82 -11.20
North-West Companies(14) 13.27 9,805 149.9 17.92 12.77 13.55 -1.76 -15.69 -18.24
South-East Companies(35) 13.09 3,296 45.1 16.81 12.05 13.27 -1.65 -11.79 -12.76
South-West Companies(5) 16.31 8,651 220.3 21.09 15.19 16.89 -3.37 -0.35 -6.01
Western Companies (Excl CA)(5) 11.68 2,436 30.0 15.18 9.66 11.06 5.48 -10.44 -10.76
Thrift Strategy(235) 12.74 6,508 107.3 16.79 11.74 12.85 -0.89 -13.44 -14.20
Mortgage Banker Strategy(12) 13.46 32,715 341.0 18.85 12.55 13.67 -1.38 -14.86 -18.37
Real Estate Strategy(5) 12.38 7,578 68.1 15.03 10.62 12.76 -0.81 -2.71 0.69
Diversified Strategy(5) 14.85 80,203 1,273.1 21.94 12.75 15.18 -1.82 5.18 4.19
Retail Banking Strategy(1) 11.63 1,281 14.9 14.63 10.50 10.50 10.76 -6.06 -12.23
Companies Issuing Dividends(225) 13.15 8,818 141.0 17.38 12.10 13.26 -0.75 -12.09 -12.78
Companies Without Dividends(33) 10.22 12,476 142.0 13.70 9.30 10.39 -1.85 -18.73 -20.57
Equity/Assets less than 6%(26) 12.40 23,907 317.2 18.56 11.40 12.63 -1.38 -20.88 -22.76
Equity/Assets 6-12%(130) 13.40 8,420 155.4 17.82 12.33 13.54 -1.03 -13.89 -14.32
Equity/Assets >12%(102) 12.15 6,407 75.9 15.40 11.15 12.22 -0.55 -9.41 -10.47
Converted Last 3 Mths (no MHC)(1) 8.44 1,873 15.8 8.69 7.94 8.50 -0.71 5.50 5.50
Actively Traded Companies(22) 17.86 45,265 817.6 24.02 16.65 18.11 -1.45 -12.36 -14.41
Market Value Below $20 Million(74) 10.04 1,387 12.4 13.50 9.25 10.14 -1.40 -18.86 -18.14
Holding Company Structure(251) 12.81 9,455 144.5 16.97 11.79 12.94 -0.93 -12.92 -13.70
Assets Over $1 Billion(57) 14.85 30,110 490.0 20.45 13.49 15.00 -0.39 -12.54 -15.24
Assets $500 Million-$1 Billion(36) 13.40 5,955 76.1 18.28 12.33 13.57 -1.20 -11.31 -12.15
Assets $250-$500 Million(57) 13.40 3,408 43.2 17.38 12.61 13.56 -1.20 -13.86 -13.24
Assets less than $250 Million(108) 11.16 1,647 17.5 14.34 10.19 11.23 -0.88 -13.02 -13.54
Goodwill Companies(107) 13.34 16,228 233.9 18.20 12.23 13.47 -0.48 -13.65 -15.44
Non-Goodwill Companies(151) 12.44 4,508 78.2 16.10 11.46 12.56 -1.15 -12.33 -12.50
Acquirors of FSLIC Cases(7) 18.77 62,114 1,426.2 24.75 17.54 18.85 0.09 -8.79 -13.11
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
Market Averages. SAIF-Insured Thrifts(no MHC)
---------------------------------------------
SAIF-Insured Thrifts(258) 1.01 0.95 13.20 12.68 135.63
NYSE Traded Companies(8) 1.63 1.49 13.69 12.13 221.62
AMEX Traded Companies(24) 0.75 0.78 14.91 14.61 140.56
NASDAQ Listed OTC Companies(226) 1.02 0.94 13.01 12.51 131.88
California Companies(17) 1.61 1.50 13.91 13.28 221.58
Florida Companies(7) 0.47 0.40 8.83 8.35 99.59
Mid-Atlantic Companies(48) 0.96 0.95 12.58 12.08 151.09
Mid-West Companies(118) 0.96 0.88 13.33 12.85 120.46
New England Companies(9) 1.24 1.16 15.18 14.57 184.30
North-West Companies(14) 1.17 1.09 13.84 12.44 129.95
South-East Companies(35) 0.88 0.86 13.21 13.03 107.10
South-West Companies(5) 1.87 1.59 15.43 14.02 272.11
Western Companies (Excl CA)(5) 0.95 0.86 12.41 12.41 105.50
Thrift Strategy(235) 0.99 0.93 13.34 12.92 130.31
Mortgage Banker Strategy(12) 1.36 1.17 12.87 10.78 206.45
Real Estate Strategy(5) 1.15 1.18 9.64 9.49 140.78
Diversified Strategy(5) 1.26 1.03 10.76 8.99 193.04
Retail Banking Strategy(1) 0.97 0.36 17.54 16.33 201.77
Companies Issuing Dividends(225) 1.04 0.97 13.44 12.97 132.04
Companies Without Dividends(33) 0.84 0.81 11.41 10.48 162.79
Equity/Assets less than 6%(26) 1.27 1.21 11.32 9.91 243.56
Equity/Assets 6-12%(130) 1.18 1.08 13.04 12.37 153.15
Equity/Assets greater than 12%(102) 0.73 0.71 13.91 13.81 84.37
Converted Last 3 Mths (no MHC)(1) 0.44 0.45 14.12 14.12 102.14
Actively Traded Companies(22) 1.67 1.60 13.81 12.30 193.65
Market Value Below $20 Million(74) 0.74 0.65 12.47 12.27 109.46
Holding Company Structure(251) 1.02 0.95 13.18 12.65 133.56
Assets Over $1 Billion(57) 1.40 1.29 12.80 11.44 192.68
Assets $500 Million-$1 Billion(36) 1.12 1.05 12.84 12.30 140.47
Assets $250-$500 Million(57) 0.98 0.97 14.03 13.68 139.74
Assets less than $250 Million(108) 0.78 0.71 13.11 12.97 99.98
Goodwill Companies(107) 1.13 1.05 12.97 11.67 161.92
Non-Goodwill Companies(151) 0.93 0.88 13.36 13.36 117.79
Acquirors of FSLIC Cases(7) 1.75 1.64 15.71 13.72 237.67
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1997 or 1998.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by
public (non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe
are reliable, but we cannot guarantee the accuracy or completeness
of such information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. BIF-Insured Thrifts(no MHC)
--------------------------------------------
BIF-Insured Thrifts(49) 14.78 15,645 260.6 18.49 13.59 15.02 -1.34 -7.18 -9.34
NYSE Traded Companies(4) 19.40 86,820 1,701.7 28.21 18.42 19.50 -0.57 -24.72 -26.40
AMEX Traded Companies(4) 13.66 2,740 41.4 16.72 12.44 13.89 -1.37 -7.41 -11.20
NASDAQ Listed OTC Companies(41) 14.54 11,384 169.9 17.91 13.33 14.78 -1.40 -5.77 -7.80
California Companies(1) 13.13 7,198 94.5 17.50 12.38 13.00 1.00 -15.29 -13.22
Mid-Atlantic Companies(17) 16.57 28,123 525.9 21.51 15.32 16.97 -1.97 -6.66 -9.76
New England Companies(27) 14.65 9,973 140.0 17.79 13.37 14.83 -1.21 -6.44 -8.51
North-West Companies(3) 10.11 7,279 72.2 12.95 9.48 10.17 -0.67 -13.14 -12.05
South-East Companies(1) 6.94 3,826 26.6 8.38 6.63 6.91 0.43 -7.47 -11.93
Thrift Strategy(40) 14.61 10,179 177.1 17.97 13.31 14.85 -1.30 -5.02 -6.64
Mortgage Banker Strategy(4) 20.48 63,965 1,069.4 28.04 19.25 20.73 -1.32 -15.26 -25.81
Real Estate Strategy(2) 10.32 7,263 74.7 13.66 9.69 10.41 -1.48 -15.98 -15.22
Diversified Strategy(3) 14.21 40,328 605.7 18.54 13.92 14.44 -1.71 -19.84 -22.34
Companies Issuing Dividends(44) 15.15 16,049 272.5 19.03 13.89 15.43 -1.66 -7.72 -10.09
Companies Without Dividends(5) 11.00 11,505 138.8 12.92 10.47 10.75 1.97 -1.62 -1.64
Equity/Assets less than 6%(4) 12.69 5,057 65.1 16.60 12.60 13.14 -3.18 -19.04 -19.95
Equity/Assets 6-12%(29) 16.39 16,298 264.1 20.34 15.02 16.68 -1.40 -6.69 -9.90
Equity/Assets greater than 12%(16) 12.56 17,337 306.6 15.79 11.38 12.65 -0.74 -4.88 -5.54
Converted Last 3 Mths (no MHC)(2) 11.07 18,734 224.4 11.85 10.38 10.50 4.83 10.65 10.65
Actively Traded Companies(13) 16.59 22,179 343.2 21.59 15.54 16.76 -1.42 -16.11 -18.37
Market Value Below $20 Million(4) 14.89 1,161 16.1 18.10 14.16 16.13 -7.05 -7.42 -6.64
Holding Company Structure(41) 14.49 12,325 190.8 17.85 13.22 14.64 -0.90 -6.21 -8.48
Assets Over $1 Billion(18) 17.27 36,310 641.9 22.40 16.32 17.47 -0.69 -10.84 -13.33
Assets $500 Million-$1 Billion(11) 13.83 6,603 78.1 17.55 12.93 13.86 -0.47 -9.28 -10.47
Assets $250-$500 Million(13) 14.12 3,185 39.2 16.50 12.05 14.49 -2.25 0.81 -2.89
Assets less than $250 Million(7) 11.24 2,037 21.1 13.77 10.60 11.65 -2.85 -9.55 -9.53
Goodwill Companies(26) 16.18 24,273 421.4 20.85 15.19 16.42 -1.32 -11.30 -14.64
Non-Goodwill Companies(22) 13.35 5,566 79.3 16.18 11.94 13.65 -1.92 -4.32 -5.29
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
Market Averages. BIF-Insured Thrifts(no MHC)
--------------------------------------------
BIF-Insured Thrifts(49) 1.28 1.16 12.64 11.98 132.44
NYSE Traded Companies(4) 1.72 1.02 15.79 11.76 151.15
AMEX Traded Companies(4) 1.27 1.17 11.39 11.15 133.02
NASDAQ Listed OTC Companies(41) 1.24 1.18 12.52 12.08 130.90
California Companies(1) 2.21 2.20 16.49 16.46 148.68
Mid-Atlantic Companies(17) 1.13 1.04 13.82 12.46 132.59
New England Companies(27) 1.46 1.28 12.10 11.73 140.38
North-West Companies(3) 0.56 0.78 11.80 11.77 88.78
South-East Companies(1) 0.15 0.13 7.06 7.06 46.37
Thrift Strategy(40) 1.22 1.08 12.88 12.27 128.65
Mortgage Banker Strategy(4) 1.67 1.63 14.16 13.17 177.87
Real Estate Strategy(2) 1.47 1.46 10.63 10.61 101.21
Diversified Strategy(3) 1.44 1.51 9.50 8.13 154.52
Companies Issuing Dividends(44) 1.30 1.18 12.33 11.61 135.03
Companies Without Dividends(5) 1.03 1.03 15.78 15.77 105.91
Equity/Assets less than 6%(4) 1.72 1.30 8.91 8.52 198.77
Equity/Assets 6-12%(29) 1.53 1.42 12.46 11.74 149.64
Equity/Assets greater than 12%(16) 0.73 0.68 13.94 13.32 84.94
Converted Last 3 Mths (no MHC)(2) 0.13 0.55 16.90 16.90 67.44
Actively Traded Companies(13) 1.79 1.50 13.91 13.08 169.94
Market Value Below $20 Million(4) 1.44 1.17 14.42 14.05 172.02
Holding Company Structure(41) 1.21 1.14 12.71 12.28 126.90
Assets Over $1 Billion(18) 1.57 1.41 13.02 11.60 149.45
Assets $500 Million-$1 Billion(11) 1.08 0.99 12.90 12.60 125.36
Assets $250-$500 Million(13) 1.29 1.27 12.15 11.86 134.24
Assets less than $250 Million(7) 0.85 0.63 12.10 12.08 96.46
Goodwill Companies(26) 1.54 1.35 13.41 12.12 164.44
Non-Goodwill Companies(22) 1.01 0.98 11.54 11.54 100.59
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1997 or 1998.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by
public (non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe
are reliable, but we cannot guarantee the accuracy or completeness
of such information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Market Averages. MHC Institutions
---------------------------------
SAIF-Insured Thrifts(25) 9.38 10,242 37.5 12.63 8.45 9.37 0.48 -15.14 -15.22
BIF-Insured Thrifts(6) 11.45 39,715 258.9 14.83 10.89 11.53 -1.40 -6.09 -4.21
AMEX Traded Companies(1) 4.75 2,384 5.1 5.25 3.94 4.56 4.17 -5.00 -5.00
NASDAQ Listed OTC Companies(30) 9.95 16,398 82.9 13.32 9.09 9.96 -0.02 -13.67 -13.36
Florida Companies(2) 11.75 6,124 35.8 16.41 11.19 11.97 -1.33 -23.48 -23.13
Mid-Atlantic Companies(22) 8.62 13,312 58.7 11.54 7.67 8.63 0.11 -11.80 -11.83
Mid-West Companies(4) 11.78 23,815 108.1 14.69 11.02 11.74 0.90 -14.93 -13.72
New England Companies(2) 15.26 44,792 335.9 22.54 15.01 15.18 0.16 -18.61 -19.71
South-East Companies(1) 12.38 4,370 25.4 14.25 11.50 12.38 0.00 -11.57 -4.77
Thrift Strategy(30) 9.42 14,443 65.0 12.43 8.54 9.43 0.08 -13.05 -12.68
Diversified Strategy(1) 20.63 61,051 541.8 31.94 20.38 20.38 1.23 -23.59 -25.33
Companies Issuing Dividends(26) 10.31 18,390 93.8 13.84 9.41 10.32 0.11 -14.55 -13.98
Companies Without Dividends(5) 6.99 3,236 10.6 8.98 6.41 7.00 0.12 -7.33 -8.42
Equity/Assets less than 6%(1) 14.50 6,494 47.3 23.31 14.50 15.00 -3.33 -36.96 -36.26
Equity/Assets 6-12%(14) 9.78 12,929 62.6 14.65 8.98 9.69 1.35 -19.36 -19.20
Equity/Assets greater than 12%(16) 9.48 19,177 98.0 11.02 8.52 9.55 -0.75 -6.69 -6.29
Market Value Below $20 Million(5) 7.13 2,334 7.3 10.48 6.51 7.01 1.82 -14.13 -15.82
Holding Company Structure(29) 9.44 14,875 67.0 12.39 8.55 9.47 -0.10 -12.73 -12.29
Assets Over $1 Billion(7) 12.07 54,250 286.9 16.67 11.37 12.04 0.85 -14.21 -12.81
Assets $500 Million-$1 Billion(2) 13.01 18,407 96.2 14.76 9.76 13.11 -0.82 23.83 23.61
Assets $250-$500 Million(13) 8.88 4,100 14.9 12.26 8.22 8.88 0.23 -18.22 -19.24
Assets less than $250 Million(9) 8.58 2,719 10.8 11.01 7.85 8.61 -0.41 -14.05 -12.57
Goodwill Companies(10) 11.75 31,116 172.5 15.53 10.64 11.76 0.25 -6.37 -5.00
Non-Goodwill Companies(21) 8.84 8,723 36.5 11.88 8.11 8.85 0.05 -16.73 -16.94
MHC Institutions(31) 9.78 15,946 80.4 13.06 8.92 9.79 0.12 -13.39 -13.09
MHC Converted Last 3 Months(1) 6.31 3,452 10.7 6.94 6.00 6.63 -4.83 -9.86 -9.86
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
Market Averages. MHC Institutions
---------------------------------
SAIF-Insured Thrifts(25) 0.49 0.50 9.43 9.27 83.97
BIF-Insured Thrifts(6) 0.79 0.71 10.43 9.80 80.28
AMEX Traded Companies(1) 0.30 0.31 6.68 6.68 28.09
NASDAQ Listed OTC Companies(30) 0.56 0.54 9.72 9.46 85.09
Florida Companies(2) 0.73 0.67 11.55 11.34 173.76
Mid-Atlantic Companies(22) 0.48 0.48 9.16 8.92 75.61
Mid-West Companies(4) 0.57 0.61 10.59 10.59 79.74
New England Companies(2) 1.15 0.96 11.17 10.11 98.36
South-East Companies(1) 0.49 0.44 9.09 9.09 54.34
Thrift Strategy(30) 0.52 0.51 9.52 9.33 80.53
Diversified Strategy(1) 1.56 1.28 12.66 10.53 164.89
Companies Issuing Dividends(26) 0.59 0.56 9.66 9.36 87.12
Companies Without Dividends(5) 0.36 0.42 9.44 9.44 63.15
Equity/Assets greater than 6%(1) 0.86 0.78 12.51 12.08 267.00
Equity/Assets 6-12%(14) 0.56 0.52 8.89 8.48 95.41
Equity/Assets >12%(16) 0.53 0.53 10.09 9.98 61.14
Market Value Below $20 Million(5) 0.44 0.42 9.35 9.35 77.00
Holding Company Structure(29) 0.51 0.51 9.51 9.31 80.28
Assets Over $1 Billion(7) 0.77 0.76 9.82 9.13 112.77
Assets $500 Million-$1 Billion(2) 0.58 0.55 10.25 10.11 64.64
Assets $250-$500 Million(13) 0.47 0.48 9.52 9.40 82.13
Assets less than $250 Million(9) 0.49 0.44 9.48 9.35 66.06
Goodwill Companies(10) 0.70 0.66 9.84 9.06 107.68
Non-Goodwill Companies(21) 0.48 0.48 9.52 9.52 71.62
MHC Institutions(31) 0.55 0.54 9.62 9.37 83.26
MHC Converted Last 3 Months(1) 0.52 0.45 11.08 11.08 67.79
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1997 or 1998.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data
and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by
public (non-MHC) shares.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information
provided in this report has been obtained from sources we believe
are reliable, but we cannot guarantee the accuracy or completeness
of such information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NYSE Traded Companies
---------------------
CF Charter One Financial of OH 18.69 172,278 3,219.9 30.36 18.50 19.50 -4.15 -26.13 -29.28
CFB Commercial Federal Corp. of NE 16.88 59,163 998.7 25.00 16.25 16.63 1.50 -26.00 -27.21
DME Dime Bancorp, Inc. of NY* 15.50 110,755 1,716.7 27.06 15.38 15.63 -0.83 -37.53 -40.95
DSL Downey Financial Corp. of CA 19.81 28,148 557.6 25.75 18.13 20.19 -1.88 -12.46 -22.13
FED FirstFed Fin. Corp. of CA 13.38 18,409 246.3 20.00 13.13 13.69 -2.26 -21.29 -25.17
GSB Golden State Bancorp of CA 16.69 126,655 2,113.9 25.88 15.56 17.50 -4.63 4.71 0.36
GDW Golden West Fin. Corp. of CA 32.31 161,972 5,233.3 38.02 28.25 31.94 1.16 10.92 5.73
GPT GreenPoint Fin. Corp. of NY* 24.13 109,469 2,641.5 36.69 23.63 24.25 -0.49 -27.71 -31.31
JSB JSB Financial, Inc. of NY(8)* 51.25 9,290 476.1 62.81 47.63 52.63 -2.62 0.23 -5.76
OCN Ocwen Financial Corp. of FL 5.81 60,116 349.3 12.31 5.69 5.88 -1.19 -38.84 -52.80
SIB Staten Island Bancorp of NY* 18.56 40,235 746.8 20.88 16.25 18.63 -0.38 -8.93 -6.92
WES Westcorp Inc. of Orange CA 15.50 26,529 411.2 16.13 6.44 15.00 3.33 100.00 123.34
AMEX Traded Companies
---------------------
ANA Acadiana Bancshares, Inc of LA 20.38 1,500 30.6 20.88 17.38 20.50 -0.59 14.82 16.46
ANE Alliance Bncp of New Eng of CT* 8.88 2,300 20.4 12.38 8.75 9.06 -1.99 -20.22 -24.43
BKC American Bank of Waterbury CT* 22.25 4,714 104.9 25.13 19.50 22.50 -1.11 7.23 -2.20
BYS Bay State Bancorp of MA 19.00 2,288 43.5 26.00 19.00 19.00 0.00 -24.00 -20.44
BFD BostonFed Bancorp of MA 14.44 5,021 72.5 18.88 14.00 14.06 2.70 -15.06 -18.09
CNY Carver Bancorp, Inc. of NY 9.13 2,314 21.1 11.13 6.50 9.44 -3.28 13.28 4.34
CBK Citizens First Fin.Corp. of IL 12.00 2,038 24.5 15.63 11.63 12.31 -2.52 -22.58 -13.54
EFC EFC Bancorp, Inc of IL 10.38 5,407 56.1 12.50 9.38 10.38 0.00 -15.27 -4.60
EBI Equality Bancorp, Inc. of MO 6.88 2,452 16.9 10.63 6.88 6.88 0.00 -30.36 -27.58
ESX Essex Bancorp of Norfolk VA(8) 1.25 1,061 1.3 3.69 1.25 1.38 -9.42 -28.57 -13.19
FCB Falmouth Bancorp, Inc. of MA* 15.50 1,176 18.2 17.88 13.63 16.13 -3.91 -3.13 3.33
FAB FirstFed America Bancorp of MA 12.25 7,077 86.7 14.88 12.00 12.25 0.00 -2.00 -10.52
GAF GA Financial Corp. of PA 12.88 6,174 79.5 16.13 12.50 13.00 -0.92 -12.32 -16.90
GOV Gouverneur Bcp MHC of NY (45.0 4.75 2,384 5.1 5.25 3.94 4.56 4.17 -5.00 -5.00
HBS Haywood Bancshares, Inc. of NC(8) 20.13 1,250 25.2 21.38 13.38 20.25 -0.59 26.76 26.76
KNK Kankakee Bancorp, Inc. of IL 21.88 1,251 27.4 28.75 21.75 22.00 -0.55 -15.46 -15.03
KYF Kentucky First Bancorp of KY 10.25 1,148 11.8 13.00 10.00 10.38 -1.25 -21.15 -20.42
NBN Northeast Bancorp of ME* 8.00 2,770 22.2 11.50 7.88 7.88 1.52 -13.51 -21.49
NEP Northeast PA Fin. Corp of PA 9.38 5,801 54.4 12.94 9.38 9.88 -5.06 -22.22 -19.35
PDB Piedmont Bancorp, Inc. of NC 7.88 2,503 19.7 9.25 7.25 7.94 -0.76 -15.99 -12.44
SPN Security of PA Financial of PA 9.38 1,587 14.9 10.88 9.13 9.50 -1.26 -6.20 -8.49
SZB SouthFirst Bancshares of AL 10.38 905 9.4 16.50 10.38 10.38 0.00 -35.65 -37.09
SRN Southern Banc Company of AL 9.38 1,055 9.9 12.63 8.00 9.38 0.00 -27.85 -22.22
TSH Teche Holding Company of LA 13.38 2,737 36.6 17.13 13.25 13.63 -1.83 -11.16 -13.00
FTF Texarkana Fst. Fin. Corp of AR 19.25 1,539 29.6 24.50 19.06 19.25 0.00 -18.95 -16.77
THR Three Rivers Fin. Corp. of MI(8) 15.63 703 11.0 15.63 10.75 15.63 0.00 16.29 15.78
WSB Washington SB, FSB of MD 3.38 4,424 15.0 4.75 3.31 3.38 0.00 -20.47 -24.89
WFI Winton Financial Corp. of OH 12.88 4,404 56.7 15.38 10.50 13.38 -3.74 -1.90 1.02
WRO Woronoco Bancorp, Inc of MA 9.69 5,999 58.1 10.88 8.69 9.69 0.00 -3.10 -3.10
NASDAQ Listed OTC Companies
---------------------------
AMFC AMB Financial Corp. of IN 13.25 726 9.6 15.00 11.00 13.88 -4.54 15.22 9.23
ASBP ASB Financial Corp. of OH 9.25 1,610 14.9 12.88 9.00 10.25 -9.76 -23.74 -22.53
ABBK Abington Bancorp of MA* 11.63 3,275 38.1 15.13 11.63 11.63 0.00 -13.85 -16.21
AABC Access Anytime Bancorp of NM 7.88 1,240 9.8 10.00 6.38 8.50 -7.29 23.51 8.69
AFBC Advance Fin. Bancorp of WV 12.38 962 11.9 13.50 10.44 12.75 -2.90 -2.90 -1.98
ALBC Albion Banc Corp. of Albion NY(8) 15.25 753 11.5 15.25 8.50 15.25 0.00 45.24 67.03
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
NYSE Traded Companies
---------------------
CF Charter One Financial of OH 1.49 1.79 11.39 10.52 148.02
CFB Commercial Federal Corp. of NE 1.72 1.85 16.43 12.20 221.48
DME Dime Bancorp, Inc. of NY* 2.16 1.19 13.31 10.39 204.06
DSL Downey Financial Corp. of CA 2.01 1.71 18.33 18.18 302.00
FED FirstFed Fin. Corp. of CA 1.92 1.90 12.41 12.36 204.36
GSB Golden State Bancorp of CA 1.43 1.76 11.48 4.58 440.61
GDW Golden West Fin. Corp. of CA 2.92 2.76 19.27 19.27 246.74
GPT GreenPoint Fin. Corp. of NY* 1.73 0.84 19.04 10.26 141.46
JSB JSB Financial, Inc. of NY(8)* 3.42 3.42 40.28 40.28 171.77
OCN Ocwen Financial Corp. of FL 0.13 -0.31 7.28 7.00 46.60
SIB Staten Island Bancorp of NY* 1.27 1.03 15.02 14.62 107.94
WES Westcorp Inc. of Orange CA 1.43 0.42 12.93 12.90 163.15
AMEX Traded Companies
---------------------
ANA Acadiana Bancshares, Inc of LA 1.49 1.46 18.31 18.31 198.87
ANE Alliance Bncp of New Eng of CT* 1.24 1.16 6.68 6.60 134.99
BKC American Bank of Waterbury CT* 2.08 1.93 12.67 12.32 157.20
BYS Bay State Bancorp of MA 1.04 1.03 25.30 25.30 190.59
BFD BostonFed Bancorp of MA 1.65 1.36 16.72 16.20 243.85
CNY Carver Bancorp, Inc. of NY -1.51 0.21 14.14 13.74 178.58
CBK Citizens First Fin.Corp. of IL 0.76 0.58 16.80 16.80 148.80
EFC EFC Bancorp, Inc of IL 0.73 0.73 12.73 12.73 88.34
EBI Equality Bancorp, Inc. of MO 0.45 -0.15 9.81 9.81 130.06
ESX Essex Bancorp of Norfolk VA(8) 1.31 1.31 1.48 1.43 244.61
FCB Falmouth Bancorp, Inc. of MA* 0.82 0.63 16.37 16.37 100.88
FAB FirstFed America Bancorp of MA 1.11 1.09 14.76 14.76 205.64
GAF GA Financial Corp. of PA 1.23 1.25 14.01 13.88 143.38
GOV Gouverneur Bcp MHC of NY (45.0 0.30 0.31 6.68 6.68 28.09
HBS Haywood Bancshares, Inc. of NC(8) 1.18 1.10 17.48 16.97 118.52
KNK Kankakee Bancorp, Inc. of IL 1.29 1.29 29.16 24.93 321.16
KYF Kentucky First Bancorp of KY 0.76 0.76 11.84 11.84 66.75
NBN Northeast Bancorp of ME* 0.93 0.95 9.83 9.32 139.01
NEP Northeast PA Fin. Corp of PA 0.78 0.74 13.11 13.11 101.57
PDB Piedmont Bancorp, Inc. of NC 0.42 0.46 7.71 7.71 56.00
SPN Security of PA Financial of PA -0.03 -0.07 14.17 14.17 81.70
SZB SouthFirst Bancshares of AL 0.53 0.14 16.64 15.98 167.18
SRN Southern Banc Company of AL 0.57 0.57 15.69 15.60 97.41
TSH Teche Holding Company of LA 1.29 1.28 18.11 18.11 155.77
FTF Texarkana Fst. Fin. Corp of AR 2.18 2.16 17.14 17.14 130.70
THR Three Rivers Fin. Corp. of MI(8) 0.86 0.72 15.50 15.46 141.53
WSB Washington SB, FSB of MD 0.23 0.19 5.27 5.27 57.24
WFI Winton Financial Corp. of OH 0.65 0.78 7.30 7.22 105.87
WRO Woronoco Bancorp, Inc of MA 0.08 0.56 14.29 14.29 82.22
NASDAQ Listed OTC Companies
---------------------------
AMFC AMB Financial Corp. of IN 0.89 1.04 16.02 16.02 168.63
ASBP ASB Financial Corp. of OH 0.69 0.66 7.91 7.91 76.26
ABBK Abington Bancorp of MA* 1.28 0.89 9.09 8.09 200.42
AABC Access Anytime Bancorp of NM 1.30 0.31 8.91 8.91 102.99
AFBC Advance Fin. Bancorp of WV 0.89 0.84 15.54 15.54 143.00
ALBC Albion Banc Corp. of Albion NY(8) 0.32 0.41 8.66 8.66 104.41
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
ABCL Alliance Bancorp, Inc. of IL 17.75 10,539 187.1 25.38 17.75 18.69 -5.03 -7.79 -9.25
ALLB Alliance Bank MHC of PA (18.7) 9.00 3,274 5.5 13.00 8.00 9.00 0.00 -26.53 -23.40
AHCI Ambanc Holding Co., Inc. of NY* 15.50 4,965 77.0 18.50 14.13 14.50 6.90 -0.83 -12.68
ASBI Ameriana Bancorp of IN 15.38 3,346 51.5 18.44 15.38 15.81 -2.72 -16.59 -13.35
AMFH American Fin. Holdings of CT* 12.75 28,871 368.1 12.75 11.38 11.56 10.29 27.50 27.50
ABCW Anchor Bancorp Wisconsin of WI 15.00 25,315 379.7 24.13 15.00 15.94 -5.90 -30.23 -37.50
ANDB Andover Bancorp, Inc. of MA* 28.44 6,532 185.8 35.00 26.25 28.63 -0.66 -8.26 -17.87
ASFC Astoria Financial Corp. of NY 30.06 54,340 1,633.5 51.06 28.94 29.94 0.40 -33.48 -34.30
BCSB BCSB Bankcorp MHC of MD (38.6) 6.88 6,117 16.3 9.56 6.88 7.00 -1.71 -20.28 -21.37
BKCT Bancorp Connecticut of CT* 15.00 5,216 78.2 18.00 13.50 15.00 0.00 -4.03 0.00
BPLS Bank Plus Corp. of CA 3.63 19,463 70.7 6.38 2.69 3.19 13.79 -16.36 -17.12
BNKU Bank United Corp. of TX 28.88 32,449 937.1 43.56 28.88 30.13 -4.15 -29.99 -26.42
BWFC Bank West Fin. Corp. of MI 8.00 2,521 20.2 10.75 7.88 8.00 0.00 -13.51 -15.79
BANC BankAtlantic Bancorp of FL 4.94 41,760 206.3 9.38 4.81 4.94 0.00 -35.76 -30.72
BKUNA BankUnited Fin. Corp. of FL 7.16 18,325 131.2 11.00 6.13 7.13 0.42 2.29 -10.50
BFSB Bedford Bancshares, Inc. of VA 11.00 2,173 23.9 14.50 10.88 11.50 -4.35 -2.22 -4.35
BFFC Big Foot Fin. Corp. of IL 12.38 2,226 27.6 15.31 11.50 11.50 7.65 -13.12 -13.12
BRBI Blue River Bancshares of IN 4.50 1,498 6.7 9.13 4.25 4.50 0.00 -37.93 -42.89
BYFC Broadway Fin. Corp. of CA 4.94 932 4.6 8.19 4.88 4.94 0.00 -38.25 -28.82
BRKL Brookline Bncp MHC of MA(46.0)* 9.88 28,533 130.0 13.13 9.63 9.97 -0.90 -13.64 -14.09
CBES CBES Bancorp, Inc. of MO 15.38 921 14.2 16.75 13.00 15.38 0.00 -3.87 1.25
CITZ CFS Bancorp, Inc. of IN 9.13 19,600 178.9 11.38 8.94 8.94 2.13 -5.78 -9.24
CKFB CKF Bancorp of Danville KY 12.00 798 9.6 18.88 12.00 13.00 -7.69 -27.84 -29.95
CNSB CNS Bancorp, Inc. of MO(8) 16.00 1,418 22.7 16.50 10.38 15.63 2.37 16.36 42.98
CNYF CNY Financial Corp of NY* 15.38 4,875 75.0 16.00 9.69 15.31 0.46 60.88 55.67
CAFI Camco Fin. Corp. of OH 9.94 5,720 56.9 14.88 9.94 10.25 -3.02 -28.95 -30.44
CMRN Cameron Fin. Corp. of MO 12.53 2,082 26.1 16.00 11.88 12.38 1.21 -19.16 -20.29
CFFN Capitol Fincl MHC of KS (43.0) 10.00 88,689 393.2 10.52 8.88 10.00 0.00 0.00 0.00
CFNC Carolina Fincorp of NC(8) 10.13 1,872 19.0 13.19 6.88 10.00 1.30 24.60 26.63
CASB Cascade Financial Corp. of WA 11.13 5,470 60.9 14.50 9.60 12.00 -7.25 7.02 7.02
CATB Catskill Fin. Corp. of NY* 14.56 3,908 56.9 16.75 13.25 14.88 -2.15 6.82 4.00
CAVB Cavalry Bancorp of TN 22.75 7,105 161.6 24.75 18.50 22.50 1.11 7.67 7.06
CNIT Cenit Bancorp of Norfolk VA 17.69 4,814 85.2 23.13 16.50 17.63 0.34 -5.95 -17.26
CEBK Central Bancorp of MA* 20.75 1,915 39.7 23.00 16.25 20.75 0.00 22.06 9.21
CENB Century Bancorp, Inc. of NC 12.75 1,113 14.2 14.00 12.75 12.75 0.00 -5.56 -5.56
CVAL Chester Valley Bancorp of PA 14.75 3,898 57.5 18.57 14.50 15.00 -1.67 -18.51 -17.96
CLAS Classic Bancshares, Inc. of KY 11.25 1,233 13.9 15.50 11.25 11.25 0.00 -23.10 -23.73
CBSA Coastal Bancorp of Houston TX 17.50 6,296 110.2 20.13 14.38 18.50 -5.41 22.29 0.00
CFCP Coastal Fin. Corp. of SC 12.00 6,751 81.0 19.29 11.00 12.94 -7.26 -37.40 -37.40
COHB Cohoes Bancorp of NY* 10.00 9,024 90.2 13.06 9.50 10.31 -3.01 0.00 0.00
CFKY Columbia Financial of KY 13.00 2,651 34.5 15.50 10.25 13.00 0.00 6.12 5.01
CMSB Commonwealth Bancorp Inc of PA 16.44 11,946 196.4 19.38 13.69 16.25 1.17 8.66 5.66
CFFC Community Fin. Corp. of VA 10.75 2,572 27.6 11.88 9.00 11.75 -8.51 -4.44 -9.51
CIBI Community Inv. Bancorp of OH 7.50 1,219 9.1 13.50 7.50 7.50 0.00 -42.31 -38.78
CMSV Community Svgs Bcshrs of FL 12.50 10,229 127.9 13.25 10.69 12.75 -1.96 17.59 16.28
COOP Cooperative Bancshares of NC 10.69 2,761 29.5 14.00 9.50 10.69 0.00 -22.25 -10.02
CRZY Crazy Woman Creek Bncorp of WY 10.00 864 8.6 13.88 10.00 10.25 -2.44 -17.08 -16.67
CRSB Crusader Holding Corp of PA 8.38 3,911 32.8 11.43 8.38 8.75 -4.23 -18.16 -16.20
DCBI Delphos Citizens Bancorp of OH 17.00 1,638 27.8 18.50 14.25 17.00 0.00 -5.56 0.00
DCOM Dime Community Bancorp of NY* 17.91 12,726 227.9 24.50 17.69 17.88 0.17 -13.18 -13.18
ESBF ESB Financial Corp of PA 11.50 5,130 59.0 17.00 11.06 11.06 3.98 -30.30 -28.97
EBSI Eagle Bancshares of Tucker GA 14.50 5,560 80.6 22.25 14.00 14.00 3.57 -22.17 -21.11
ESBK Elmira Svgs Bank (The) of NY* 22.50 762 17.1 25.75 21.43 24.75 -9.09 0.54 -2.60
EFBC Empire Federal Bancorp of MT 11.50 2,001 23.0 14.88 10.75 11.50 0.00 -14.05 -22.72
EQSB Equitable FSB of Wheaton MD 16.81 1,232 20.7 21.13 16.00 16.81 0.00 -11.53 -19.49
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C>
ABCL Alliance Bancorp, Inc. of IL 1.75 1.66 15.66 15.54 186.54
ALLB Alliance Bank MHC of PA (18.7) 0.66 0.66 8.58 8.58 90.73
AHCI Ambanc Holding Co., Inc. of NY* 0.68 0.68 15.52 14.01 146.05
ASBI Ameriana Bancorp of IN 1.10 0.95 13.09 12.52 137.45
AMFH American Fin. Holdings of CT* 0.82 0.82 17.99 17.99 65.40
ABCW Anchor Bancorp Wisconsin of WI 0.73 0.83 8.96 8.96 111.43
ANDB Andover Bancorp, Inc. of MA* 2.76 2.78 19.67 19.67 225.52
ASFC Astoria Financial Corp. of NY 2.11 2.12 24.08 19.87 420.75
BCSB BCSB Bankcorp MHC of MD (38.6) 0.23 0.23 7.39 7.39 48.77
BKCT Bancorp Connecticut of CT* 1.36 1.23 8.48 8.48 107.85
BPLS Bank Plus Corp. of CA -0.77 -0.90 5.52 4.86 152.00
BNKU Bank United Corp. of TX 3.30 2.97 23.22 20.64 500.62
BWFC Bank West Fin. Corp. of MI 0.15 0.33 8.66 8.66 86.81
BANC BankAtlantic Bancorp of FL 0.40 0.50 5.67 4.36 95.08
BKUNA BankUnited Fin. Corp. of FL -0.24 -0.19 9.88 8.16 222.56
BFSB Bedford Bancshares, Inc. of VA 1.01 1.01 9.69 9.69 76.27
BFFC Big Foot Fin. Corp. of IL 0.34 0.34 15.30 15.30 93.93
BRBI Blue River Bancshares of IN -0.07 -0.15 10.52 8.56 106.77
BYFC Broadway Fin. Corp. of CA 0.46 1.24 14.23 14.23 179.45
BRKL Brookline Bncp MHC of MA(46.0)* 0.73 0.64 9.68 9.68 31.84
CBES CBES Bancorp, Inc. of MO 1.17 0.33 18.59 18.59 171.67
CITZ CFS Bancorp, Inc. of IN 0.71 0.69 10.89 10.89 79.31
CKFB CKF Bancorp of Danville KY 0.90 0.90 16.32 16.32 88.12
CNSB CNS Bancorp, Inc. of MO(8) 0.49 0.41 15.23 15.23 65.51
CNYF CNY Financial Corp of NY* 0.50 0.50 15.45 15.45 60.78
CAFI Camco Fin. Corp. of OH 1.06 0.76 10.86 10.29 136.09
CMRN Cameron Fin. Corp. of MO 0.97 0.95 19.37 19.37 117.75
CFFN Capitol Fincl MHC of KS (43.0) 0.44 0.74 11.80 11.80 73.73
CFNC Carolina Fincorp of NC(8) 0.49 0.42 8.53 8.53 64.10
CASB Cascade Financial Corp. of WA 0.77 0.69 6.44 6.44 110.01
CATB Catskill Fin. Corp. of NY* 1.08 1.09 15.15 15.15 86.69
CAVB Cavalry Bancorp of TN 0.68 0.47 12.68 12.68 55.01
CNIT Cenit Bancorp of Norfolk VA 1.25 1.13 10.63 9.92 135.60
CEBK Central Bancorp of MA* 1.54 1.28 19.94 18.40 194.24
CENB Century Bancorp, Inc. of NC 0.86 0.86 15.74 15.74 86.01
CVAL Chester Valley Bancorp of PA 1.13 1.09 8.54 8.54 121.41
CLAS Classic Bancshares, Inc. of KY 0.80 0.81 15.64 10.92 138.84
CBSA Coastal Bancorp of Houston TX 1.89 1.89 16.89 12.38 471.19
CFCP Coastal Fin. Corp. of SC 1.14 1.02 6.11 6.11 105.62
COHB Cohoes Bancorp of NY* 0.34 0.34 14.36 14.36 75.04
CFKY Columbia Financial of KY 0.37 0.37 11.38 11.38 42.83
CMSB Commonwealth Bancorp Inc of PA 1.32 0.75 12.58 9.72 162.62
CFFC Community Fin. Corp. of VA 0.72 0.20 10.26 10.23 89.55
CIBI Community Inv. Bancorp of OH 0.77 0.77 8.80 8.80 97.40
CMSV Community Svgs Bcshrs of FL 0.59 0.59 12.42 12.42 84.82
COOP Cooperative Bancshares of NC 0.93 0.90 10.73 10.73 141.07
CRZY Crazy Woman Creek Bncorp of WY 0.83 0.83 15.49 15.49 73.62
CRSB Crusader Holding Corp of PA 1.38 1.24 7.19 6.90 83.86
DCBI Delphos Citizens Bancorp of OH 1.04 1.04 15.55 15.55 78.28
DCOM Dime Community Bancorp of NY* 1.68 1.68 16.86 11.85 183.62
ESBF ESB Financial Corp of PA 1.12 1.06 10.32 9.07 199.48
EBSI Eagle Bancshares of Tucker GA 1.70 1.60 13.21 13.21 213.60
ESBK Elmira Svgs Bank (The) of NY* 2.10 2.14 20.01 18.67 332.02
EFBC Empire Federal Bancorp of MT 0.65 0.65 16.48 16.48 55.67
EQSB Equitable FSB of Wheaton MD 1.98 1.91 17.79 17.79 356.19
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
EVRT Evertrust Fin. Grp, Inc. of WA* 9.38 8,596 80.6 10.94 9.38 9.44 -0.64 -6.20 -6.20
FFDF FFD Financial Corp. of OH 10.63 1,424 15.1 18.00 10.50 10.63 0.00 -26.69 -21.26
FFLC FFLC Bancorp of Leesburg FL 14.63 3,576 52.3 19.00 14.50 15.25 -4.07 -9.97 -9.97
FFWC FFW Corporation of Wabash IN 13.00 1,417 18.4 16.75 12.25 12.75 1.96 -16.83 -16.13
FFYF FFY Financial Corp. of OH 12.25 6,963 85.3 19.00 12.00 12.00 2.08 -27.43 -29.76
FMCO FMS Financial Corp. of NJ 9.50 7,203 68.4 11.00 7.63 9.38 1.28 1.28 4.05
FFHH FSF Financial Corp. of MN 12.31 2,806 34.5 15.81 11.75 12.25 0.49 -18.26 -17.27
FDTR Federal Trust Corp of FL 2.38 4,948 11.8 3.00 2.25 2.31 3.03 -2.46 3.03
FBCI Fidelity Bancorp of Chicago IL 17.88 2,208 39.5 25.06 16.00 17.56 1.82 -25.13 -25.50
FSBI Fidelity Bancorp, Inc. of PA 12.75 1,934 24.7 18.25 12.75 12.75 0.00 -30.14 -26.09
FFFL Fidelity Bcsh MHC of FL (48.0) 14.50 6,494 47.3 23.31 14.50 15.00 -3.33 -36.96 -36.26
FFED Fidelity Fed. Bancorp of IN 1.50 3,148 4.7 4.13 1.50 1.88 -20.21 -60.00 -55.62
FFOH Fidelity Financial of OH(8) 16.44 9,142 150.3 20.50 11.31 16.88 -2.61 28.94 26.46
SBFL Fingr Lakes Fin.MHC OF NY(33.1 7.50 3,570 8.9 15.75 7.50 7.50 0.00 -39.42 -34.78
FBEI First Bancorp of Indiana of IN 9.19 2,272 20.9 10.75 9.06 9.19 0.00 -8.10 -8.10
FBSI First Bancshares, Inc. of MO 9.97 2,038 20.3 13.00 9.25 9.25 7.78 -20.24 -21.80
FBBC First Bell Bancorp of PA 15.25 5,328 81.3 20.31 14.75 15.44 -1.23 -3.17 -1.61
FCAP First Capital, Inc. of IN 11.00 1,293 14.2 12.50 8.75 11.00 0.00 10.00 10.00
FCME First Coastal Corp. of ME* 8.75 1,355 11.9 10.50 8.75 9.00 -2.78 -12.50 -14.63
FCFN First Community Fin Corp of NC 16.75 1,881 31.5 17.69 16.13 16.88 -0.77 11.67 11.67
FDEF First Defiance Fin.Corp. of OH 10.75 6,990 75.1 14.50 10.00 11.25 -4.44 -21.82 -24.56
FESX First Essex Bancorp of MA* 14.69 7,592 111.5 18.25 14.00 14.31 2.66 -13.59 -18.39
FFES First Fed of E. Hartford CT 26.50 2,782 73.7 32.75 22.13 27.00 -1.85 -0.49 -1.85
BDJI First Fed. Bancorp. of MN 6.25 1,431 8.9 9.83 5.38 7.75 -19.35 -35.37 -36.42
FFBH First Fed. Bancshares of AR 16.63 4,158 69.1 20.13 15.75 16.63 0.00 -17.75 -10.74
FTFC First Fed. Capital Corp. of WI 13.38 18,907 253.0 18.00 11.75 13.94 -4.02 -9.66 -18.32
FFKY First Fed. Fin. Corp. of KY 22.63 3,973 89.9 27.88 19.88 22.25 1.71 -15.40 -15.40
FFBZ First Federal Bancorp of OH 7.63 3,196 24.4 10.75 5.50 7.13 7.01 -29.87 -27.33
FFSX First Federal Bankshares of IA 8.94 4,825 43.1 14.72 8.38 9.00 -0.67 -38.64 -36.01
FFCH First Fin. Holdings Inc. of SC 16.00 13,353 213.6 20.88 15.75 15.75 1.59 -15.52 -15.79
FFHS First Franklin Corp. of OH 12.97 1,632 21.2 16.88 11.56 13.38 -3.06 6.92 -13.53
FGHC First Georgia Hold. Corp of GA 5.00 7,198 36.0 7.63 4.75 5.00 0.00 -11.82 -16.67
FFSL First Independence Corp. of KS 10.56 1,062 11.2 11.75 9.25 10.56 0.00 -4.00 4.24
FISB First Indiana Corp. of IN 22.50 12,513 281.5 26.13 18.00 23.00 -2.17 10.40 12.50
FKAN First Kansas Financial of KS 11.00 1,402 15.4 11.75 10.00 11.00 0.00 5.36 5.97
FKFS First Keystone Fin. Corp of PA 8.56 2,252 19.3 14.75 8.50 9.25 -7.46 -41.97 -40.97
FLKY First Lancaster Bncshrs of KY 12.63 896 11.3 13.69 10.38 12.00 5.25 -3.81 -7.74
CASH First Midwest Fin., Inc. of IA 10.00 2,507 25.1 16.00 9.50 9.50 5.26 -29.23 -33.33
FMSB First Mutual SB of Bellevue WA* 11.19 4,681 52.4 13.52 10.06 11.13 0.54 -9.69 -7.14
FNFI First Niles Financial of OH 12.88 1,695 21.8 17.38 10.25 12.44 3.54 22.67 13.88
FNGB First Northern Cap. Corp of WI 9.97 8,659 86.3 13.25 9.75 10.13 -1.58 -18.61 -14.27
FPFC First Place Fin. Corp of OH 11.19 11,241 125.8 12.94 9.63 11.00 1.73 11.90 11.90
FWWB First Savings Bancorp of WA 15.06 11,323 170.5 24.00 15.06 16.25 -7.32 -27.87 -37.25
FSFF First SecurityFed Fin of IL 10.88 5,529 60.2 13.50 10.75 10.88 0.00 -18.68 -16.31
FSLA First Sentinal Bancorp of NJ 8.05 39,777 320.2 9.44 7.06 8.00 0.63 0.63 -0.98
SOPN First Svgs Bancorp of NC(8) 19.13 3,468 66.3 22.50 18.13 18.44 3.74 -13.05 -14.02
FBNW FirstBank NW Corp of ID 13.25 1,740 23.1 17.00 12.50 13.25 0.00 -1.85 -10.95
FFDB FirstFed Bancorp, Inc. of AL 9.25 2,332 21.6 11.13 7.63 9.25 0.00 -2.63 -16.89
FSPT FirstSpartan Fin. Corp. of SC 17.72 3,788 67.1 35.25 17.63 18.00 -1.56 -42.37 -41.19
FLGS Flagstar Bancorp, Inc of MI 15.06 13,597 204.8 29.88 13.00 15.81 -4.74 -40.21 -42.37
FFBK FloridaFirst MHC of FL (47.0) 9.00 5,753 24.3 9.50 7.88 8.94 0.67 -10.00 -10.00
FFIC Flushing Fin. Corp. of NY* 15.81 9,938 157.1 17.56 12.88 15.50 2.00 0.38 0.00
FTSB Fort Thomas Fin. Corp. of KY 15.00 1,474 22.1 16.50 10.00 15.00 0.00 11.11 7.14
FKKY Frankfort First Bancorp of KY 15.13 1,483 22.4 15.88 14.38 15.13 0.00 0.87 0.00
GUPB GFSB Bancorp, Inc of Gallup NM 14.00 981 13.7 15.25 13.00 14.00 0.00 -1.75 -1.75
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
EVRT Evertrust Fin. Grp, Inc. of WA* -0.56 0.28 15.80 15.80 69.49
FFDF FFD Financial Corp. of OH 0.57 0.44 11.17 11.17 80.68
FFLC FFLC Bancorp of Leesburg FL 1.50 1.34 15.34 15.34 153.98
FFWC FFW Corporation of Wabash IN 1.53 1.18 13.28 12.34 156.55
FFYF FFY Financial Corp. of OH 1.16 1.11 9.58 9.58 95.17
FMCO FMS Financial Corp. of NJ 0.69 0.67 6.33 6.32 102.81
FFHH FSF Financial Corp. of MN 0.89 0.51 15.08 14.08 149.00
FDTR Federal Trust Corp of FL 0.16 0.12 2.82 2.82 41.87
FBCI Fidelity Bancorp of Chicago IL 1.87 1.87 19.03 19.02 271.41
FSBI Fidelity Bancorp, Inc. of PA 1.75 1.72 13.47 13.47 249.51
FFFL Fidelity Bcsh MHC of FL (48.0) 0.86 0.78 12.51 12.08 267.00
FFED Fidelity Fed. Bancorp of IN 0.12 0.17 2.47 2.47 52.34
FFOH Fidelity Financial of OH(8) 0.43 0.73 10.77 10.06 88.11
SBFL Fingr Lakes Fin.MHC OF NY(33.1 0.25 0.19 5.63 5.63 84.24
FBEI First Bancorp of Indiana of IN 0.35 0.35 15.80 15.80 54.25
FBSI First Bancshares, Inc. of MO 0.93 0.91 11.98 11.55 88.76
FBBC First Bell Bancorp of PA 1.49 1.49 10.72 10.72 151.03
FCAP First Capital, Inc. of IN 0.75 0.79 13.35 13.35 101.75
FCME First Coastal Corp. of ME* 1.65 0.81 12.82 12.82 140.05
FCFN First Community Fin Corp of NC 0.09 0.78 25.38 25.38 120.53
FDEF First Defiance Fin.Corp. of OH 0.69 0.18 12.92 10.79 133.34
FESX First Essex Bancorp of MA* 1.58 1.48 12.09 9.14 177.30
FFES First Fed of E. Hartford CT 2.16 2.09 24.95 24.95 355.96
BDJI First Fed. Bancorp. of MN 0.54 0.58 9.13 9.13 92.45
FFBH First Fed. Bancshares of AR 1.52 1.48 19.06 19.06 160.87
FTFC First Fed. Capital Corp. of WI 1.15 0.91 6.96 6.28 103.16
FFKY First Fed. Fin. Corp. of KY 1.60 1.62 13.80 11.12 125.74
FFBZ First Federal Bancorp of OH 0.47 0.46 5.52 5.52 65.66
FFSX First Federal Bankshares of IA 0.98 0.78 14.17 9.87 142.61
FFCH First Fin. Holdings Inc. of SC 1.45 1.38 9.43 9.43 155.08
FFHS First Franklin Corp. of OH 0.90 0.80 12.09 12.06 150.37
FGHC First Georgia Hold. Corp of GA 0.30 0.23 2.36 2.26 27.79
FFSL First Independence Corp. of KS 1.08 1.08 12.34 12.34 130.07
FISB First Indiana Corp. of IN 1.71 1.14 13.82 13.69 150.13
FKAN First Kansas Financial of KS 0.56 0.56 13.87 13.73 103.64
FKFS First Keystone Fin. Corp of PA 1.26 1.09 10.61 10.61 199.88
FLKY First Lancaster Bncshrs of KY 0.33 0.33 14.77 14.77 57.70
CASH First Midwest Fin., Inc. of IA 1.05 0.97 15.86 14.22 203.91
FMSB First Mutual SB of Bellevue WA* 1.24 1.05 8.18 8.18 117.03
FNFI First Niles Financial of OH 0.77 0.72 17.02 17.02 49.69
FNGB First Northern Cap. Corp of WI 0.84 0.81 8.91 8.91 92.88
FPFC First Place Fin. Corp of OH 0.29 0.28 13.52 13.52 70.80
FWWB First Savings Bancorp of WA 1.43 1.28 15.80 12.40 154.91
FSFF First SecurityFed Fin of IL 0.92 0.92 15.09 15.05 66.00
FSLA First Sentinal Bancorp of NJ 0.54 0.52 6.59 6.41 47.88
SOPN First Svgs Bancorp of NC(8) 1.51 1.51 18.32 18.32 93.34
FBNW FirstBank NW Corp of ID 1.09 0.78 15.40 15.40 129.09
FFDB FirstFed Bancorp, Inc. of AL 0.58 0.58 8.03 7.50 77.75
FSPT FirstSpartan Fin. Corp. of SC 1.23 1.48 17.75 17.75 142.86
FLGS Flagstar Bancorp, Inc of MI 3.17 3.17 13.93 13.77 278.43
FFBK FloridaFirst MHC of FL (47.0) 0.59 0.55 10.59 10.59 80.51
FFIC Flushing Fin. Corp. of NY* 1.23 1.22 12.11 11.63 121.76
FTSB Fort Thomas Fin. Corp. of KY 0.62 0.62 9.10 9.10 68.19
FKKY Frankfort First Bancorp of KY 1.10 1.10 14.22 14.22 95.11
GUPB GFSB Bancorp, Inc of Gallup NM 1.18 1.14 12.67 12.67 158.90
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
GSLA GS Financial Corp. of LA 10.00 2,648 26.5 13.50 10.00 10.38 -3.66 -17.56 -23.08
GOSB GSB Financial Corp. of NY* 12.38 2,070 25.6 14.63 11.75 12.25 1.06 -10.81 -11.57
GBNK Gaston Fed Bncp MHC of NC(46.3 12.38 4,370 25.4 14.25 11.50 12.38 0.00 -11.57 -4.77
GCFC Grand Central Fin Corp of OH 14.50 1,842 26.7 15.63 10.25 15.63 -7.23 45.00 34.88
GTPS Great American Bancorp of IL 13.00 1,260 16.4 16.25 12.75 12.75 1.96 -6.34 -10.34
PEDE Great Pee Dee Bancorp of SC 12.00 1,973 23.7 13.50 11.38 12.00 0.00 -11.11 0.00
GAFC Greater Atlant. Fin Corp of VA 4.63 3,007 13.9 9.88 4.63 5.38 -13.94 ***.** ***.**
GCBC Green Co. Bcrp MHC of NY (44.5 9.13 2,087 8.0 10.50 7.73 9.13 0.00 0.44 -4.40
GFED Guaranty Fed Bancshares of MO 9.94 5,464 54.3 12.38 9.94 10.63 -6.49 -15.83 -14.97
HFFC HF Financial Corp. of SD 11.63 3,968 46.1 18.38 11.19 11.75 -1.02 -16.93 -36.27
HMNF HMN Financial, Inc. of MN 12.50 4,933 61.7 13.50 10.50 12.50 0.00 6.38 6.38
HALL Hallmark Capital Corp. of WI 9.38 2,732 25.6 12.31 9.13 9.13 2.74 -23.43 -14.73
HRBF Harbor Federal Bancorp of MD 13.13 1,670 21.9 20.50 13.13 13.25 -0.91 -34.35 -34.35
HARB Harbor Florida Bancshrs of FL 12.50 28,009 350.1 13.75 10.69 12.50 0.00 14.26 11.71
HFSA Hardin Bancorp of Hardin MO 14.63 735 10.8 19.00 13.88 14.50 0.90 -23.00 -23.00
HARL Harleysville SB of PA 12.88 2,257 29.1 20.34 12.38 12.69 1.50 -36.68 -26.94
HFGI Harrington Fin. Group of IN 7.13 3,205 22.9 8.88 7.00 7.19 -0.83 -12.30 -10.88
HARS Harris Fin. MHC of PA (24.1) 8.00 33,567 64.8 15.00 6.94 7.00 14.29 -41.31 -41.31
HFFB Harrodsburg 1st Fin Bcrp of KY 13.13 1,701 22.3 15.06 11.69 11.69 12.32 -9.45 -9.45
HHFC Harvest Home Fin. Corp. of OH(8) 18.00 875 15.8 18.00 11.50 16.50 9.09 24.14 22.03
HAVN Haven Bancorp of Woodhaven NY 15.19 8,967 136.2 18.81 11.13 14.75 2.98 1.27 1.27
HTHR Hawthorne Fin. Corp. of CA 12.50 5,323 66.5 17.00 11.06 12.50 0.00 -18.73 -21.88
HMLK Hemlock Fed. Fin. Corp. of IL 13.75 1,697 23.3 14.25 12.63 13.75 0.00 0.00 0.88
HBSC Heritage Bancorp, Inc of SC 16.88 4,427 74.7 22.06 15.63 16.63 1.50 -16.64 -19.62
HFWA Heritage Financial Corp of WA 8.75 10,821 94.7 10.06 7.38 8.59 1.86 -12.50 -10.26
HCBC High Country Bancorp of CO 13.00 1,260 16.4 14.13 10.00 11.50 13.04 -0.99 0.93
HBNK Highland Bancorp of CA 18.00 4,253 76.6 20.50 15.75 18.50 -2.70 7.27 14.29
HIFS Hingham Inst. for Sav. of MA* 14.38 1,964 28.2 17.38 14.00 14.88 -3.36 -13.53 -12.85
HBFW Home Bancorp of Fort Wayne IN 19.50 2,090 40.8 33.50 19.50 19.88 -1.91 -33.90 -31.58
HCFC Home City Fin. Corp. of OH 12.50 859 10.7 17.00 12.00 13.38 -6.58 -7.41 -7.41
HOMF Home Fed Bancorp of Seymour IN 23.00 4,871 112.0 29.75 20.69 22.75 1.10 1.10 3.37
HWEN Home Financial Bancorp of IN 6.81 880 6.0 8.00 6.13 6.69 1.79 -6.07 -9.20
HLFC Home Loan Financial Corp of OH 7.88 1,991 15.7 16.00 7.88 8.00 -1.50 -43.71 -41.63
HPBC Home Port Bancorp, Inc. of MA* 26.25 1,842 48.4 27.00 21.25 26.63 -1.43 18.62 7.14
HSTD Homestead Bancorp, Inc. of LA 6.25 1,146 7.2 8.88 6.25 7.06 -11.47 -22.46 -23.69
HFBC HopFed Bancorp of KY 16.00 4,098 65.6 23.50 15.56 16.38 -2.32 -7.25 -6.92
HZFS Horizon Fin'l. Services of IA 6.88 875 6.0 12.88 6.50 6.75 1.93 -46.58 -44.96
HRZB Horizon Financial Corp. of WA* 9.75 8,559 83.5 14.38 9.00 9.94 -1.91 -23.53 -22.80
HCBK Hudson Cty Bcp MHC of NJ(47.0)* 13.50 115,638 733.7 13.88 12.13 13.38 0.90 35.00 35.00
HRBT Hudson River Bancorp Inc of NY 10.31 16,618 171.3 12.00 9.88 10.31 0.00 -7.37 -8.84
ITLA ITLA Capital Corp of CA* 13.13 7,198 94.5 17.50 12.38 13.00 1.00 -15.29 -13.22
ICBC Independence Comm Bnk Cp of NY 12.06 67,464 813.6 16.38 10.56 12.16 -0.82 -22.19 -24.34
IFSB Independence FSB of DC 11.63 1,281 14.9 14.63 10.50 10.50 10.76 -6.06 -12.23
INBI Industrial Bancorp of OH 14.00 4,428 62.0 21.00 13.88 14.00 0.00 -29.58 -30.00
ISFC Innes Street Financial of NC 13.06 2,248 29.4 13.75 11.25 12.75 2.43 30.60 -0.99
IWBK Interwest Bancorp of WA 17.56 15,435 271.0 25.00 17.56 18.00 -2.44 -13.84 -20.65
IPSW Ipswich Bancshares, Inc. of MA* 10.63 2,525 26.8 12.00 8.38 10.81 -1.67 -2.30 -1.12
JXVL Jacksonville Bancorp of TX 13.31 2,289 30.5 16.50 13.31 13.31 0.00 -15.81 -10.55
IGAF Jade Financial Corp. of PA 8.44 1,873 15.8 8.69 7.94 8.50 -0.71 5.50 5.50
JXSB Jcksnville SB,MHC of IL (45.6) 8.75 1,909 7.6 13.50 8.31 8.31 5.29 -22.22 -23.91
JSBA Jefferson Svgs Bancorp of MO 10.88 9,942 108.2 16.75 10.50 10.88 0.00 -20.87 -17.14
KSBK KSB Bancorp of Kingfield ME(8)* 18.00 1,304 23.5 19.13 8.00 18.00 0.00 0.00 16.13
KFBI Klamath First Bancorp of OR 11.94 7,908 94.4 19.38 11.38 12.06 -1.00 -34.14 -38.39
LSBI LSB Fin. Corp. of Lafayette IN 12.94 1,381 17.9 19.88 12.94 14.00 -7.57 -34.21 -31.89
LARK Landmark Bancshares, Inc of KS 16.00 1,132 18.1 24.00 15.75 16.00 0.00 -32.29 -32.29
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
GSLA GS Financial Corp. of LA 0.51 0.51 16.56 16.56 59.46
GOSB GSB Financial Corp. of NY* 0.65 0.57 14.32 14.32 84.36
GBNK Gaston Fed Bncp MHC of NC(46.3 0.49 0.44 9.09 9.09 54.34
GCFC Grand Central Fin Corp of OH 0.40 0.36 16.19 16.19 76.19
GTPS Great American Bancorp of IL 0.46 0.46 17.58 17.58 121.58
PEDE Great Pee Dee Bancorp of SC 0.44 0.43 14.47 14.47 37.72
GAFC Greater Atlant. Fin Corp of VA -0.21 -0.66 8.31 8.31 66.12
GCBC Green Co. Bcrp MHC of NY (44.5 0.60 0.60 11.17 11.17 74.03
GFED Guaranty Fed Bancshares of MO 0.63 0.62 11.22 11.22 57.35
HFFC HF Financial Corp. of SD 0.29 0.18 12.08 10.85 166.45
HMNF HMN Financial, Inc. of MN 1.39 1.04 13.33 12.26 139.37
HALL Hallmark Capital Corp. of WI 1.16 1.05 12.33 12.33 191.27
HRBF Harbor Federal Bancorp of MD 1.08 1.08 15.19 15.19 161.13
HARB Harbor Florida Bancshrs of FL 0.76 0.76 8.42 8.34 52.22
HFSA Hardin Bancorp of Hardin MO 1.70 1.37 16.52 16.52 184.73
HARL Harleysville SB of PA 1.55 1.54 12.83 12.83 203.74
HFGI Harrington Fin. Group of IN -0.40 -0.32 5.46 5.46 155.45
HARS Harris Fin. MHC of PA (24.1) 0.53 0.47 5.30 4.76 78.71
HFFB Harrodsburg 1st Fin Bcrp of KY 0.89 0.89 15.41 15.41 64.91
HHFC Harvest Home Fin. Corp. of OH(8) 0.60 0.60 11.23 11.23 114.57
HAVN Haven Bancorp of Woodhaven NY 1.27 1.10 12.37 11.80 328.07
HTHR Hawthorne Fin. Corp. of CA 2.38 2.49 17.31 17.31 300.07
HMLK Hemlock Fed. Fin. Corp. of IL 0.95 0.96 15.70 15.70 130.33
HBSC Heritage Bancorp, Inc of SC 0.53 0.81 16.85 16.85 70.86
HFWA Heritage Financial Corp of WA 0.39 0.28 9.37 8.62 45.05
HCBC High Country Bancorp of CO 0.68 0.64 14.14 14.14 93.41
HBNK Highland Bancorp of CA 2.23 2.39 10.83 10.83 149.44
HIFS Hingham Inst. for Sav. of MA* 1.63 1.61 12.82 12.82 145.45
HBFW Home Bancorp of Fort Wayne IN 1.43 1.40 18.34 18.34 193.16
HCFC Home City Fin. Corp. of OH 1.14 1.14 13.03 13.03 116.08
HOMF Home Fed Bancorp of Seymour IN 2.11 1.75 13.99 13.67 153.48
HWEN Home Financial Bancorp of IN 0.18 0.18 8.04 8.04 65.18
HLFC Home Loan Financial Corp of OH 0.60 0.60 9.90 9.90 52.45
HPBC Home Port Bancorp, Inc. of MA* 2.59 2.50 14.39 14.39 172.28
HSTD Homestead Bancorp, Inc. of LA 0.45 0.42 11.62 11.62 88.59
HFBC HopFed Bancorp of KY 1.20 0.15 14.75 14.75 53.35
HZFS Horizon Fin'l. Services of IA -0.14 0.58 9.29 9.29 96.09
HRZB Horizon Financial Corp. of WA* 1.00 1.01 11.42 11.34 79.82
HCBK Hudson Cty Bcp MHC of NJ(47.0)* 0.90 0.90 12.77 12.77 72.36
HRBT Hudson River Bancorp Inc of NY 0.49 0.49 12.48 11.75 64.24
ITLA ITLA Capital Corp of CA* 2.21 2.20 16.49 16.46 148.68
ICBC Independence Comm Bnk Cp of NY 0.72 0.74 12.17 9.99 91.13
IFSB Independence FSB of DC 0.97 0.36 17.54 16.33 201.77
INBI Industrial Bancorp of OH 1.21 1.21 12.41 12.41 85.12
ISFC Innes Street Financial of NC 0.72 0.70 16.38 16.38 90.66
IWBK Interwest Bancorp of WA 1.80 1.51 10.71 9.93 166.83
IPSW Ipswich Bancshares, Inc. of MA* 1.19 1.29 6.51 6.51 107.83
JXVL Jacksonville Bancorp of TX 1.66 1.66 15.48 15.48 126.83
IGAF Jade Financial Corp. of PA 0.44 0.45 14.12 14.12 102.14
JXSB Jcksnville SB,MHC of IL (45.6) 0.71 0.55 9.90 9.90 88.01
JSBA Jefferson Svgs Bancorp of MO 0.95 0.90 12.53 10.46 158.15
KSBK KSB Bancorp of Kingfield ME(8)* 1.39 1.46 11.21 10.25 146.90
KFBI Klamath First Bancorp of OR 1.16 1.17 13.86 12.62 131.72
LSBI LSB Fin. Corp. of Lafayette IN 1.30 1.19 14.00 14.00 180.95
LARK Landmark Bancshares, Inc of KS 1.93 1.37 19.52 19.52 215.22
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
LARL Laurel Capital Group of PA 13.50 2,142 28.9 19.00 13.38 13.38 0.90 -28.95 -22.32
LSBX Lawrence Savings Bank of MA* 7.69 4,357 33.5 13.00 7.25 8.00 -3.87 -40.85 -39.97
LFED Leeds Fed Bksr MHC of MD(33.2) 10.00 4,798 16.4 14.75 8.75 10.25 -2.44 -26.63 -32.20
LXMO Lexington B&L Fin. Corp. of MO 12.63 1,009 12.7 13.25 10.38 12.63 0.00 9.83 9.83
LIBB Liberty Bancorp MHC of NJ(43.0 6.06 3,626 9.4 10.44 5.88 6.00 1.00 -28.71 -32.67
LFCO Life Financial Corp of CA(8) 4.13 6,568 27.1 5.63 3.06 3.53 17.00 -24.08 -10.80
LNCB Lincoln Bancorp of IN 10.00 6,308 63.1 13.31 9.69 11.25 -11.11 0.00 -8.09
LOGN Logansport Fin. Corp. of IN 10.13 1,199 12.1 15.00 9.25 10.00 1.30 -27.64 -24.96
MAFB MAF Bancorp, Inc. of IL 21.88 24,266 530.9 27.00 19.00 21.75 0.60 -11.17 -17.43
MECH MECH Financial Inc of CT(8)* 32.94 4,996 164.6 39.38 27.75 33.00 -0.18 17.64 18.70
MFBC MFB Corp. of Mishawaka IN 17.88 1,420 25.4 23.00 17.81 17.88 0.00 -19.64 -17.79
MSBF MSB Financial, Inc of MI 8.50 1,260 10.7 15.25 7.63 8.50 0.00 -39.29 -38.18
MARN Marion Capital Holdings of IN 15.31 1,426 21.8 22.75 15.13 15.63 -2.05 -22.99 -23.45
MRKF Market Fin. Corp. of OH 9.00 1,259 11.3 12.38 8.25 9.00 0.00 -19.14 -19.14
MASB MassBank Corp. of Reading MA* 30.75 3,359 103.3 40.50 30.25 30.69 0.20 -21.15 -21.42
MTXC Matrix Bancorp, Inc of CO 12.63 6,730 85.0 18.00 10.38 12.31 2.60 -2.85 -6.44
MFLR Mayflower Co-Op. Bank of MA* 12.81 1,351 17.3 18.25 12.81 14.63 -12.44 -14.60 -12.68
MDBK Medford Bancorp, Inc. of MA* 16.63 8,378 139.3 19.25 14.63 16.88 -1.48 -6.31 -0.72
MBFC MegaBank Financial Corp of CO(8) 9.00 7,770 69.9 11.69 9.00 9.50 -5.26 -16.28 -5.26
MWBX MetroWest Bank of MA* 6.25 14,292 89.3 7.75 5.50 6.25 0.00 1.96 3.14
METF Metropolitan Fin. Corp. of OH 5.19 8,056 41.8 11.50 4.50 4.50 15.33 -53.87 -50.57
MCBN Mid-Coast Bancorp of ME 6.97 754 5.3 9.52 6.55 7.44 -6.32 -16.33 4.50
MFFC Milton Fed. Fin. Corp. of OH 12.00 2,100 25.2 15.63 11.25 11.75 2.13 -17.24 -23.22
MBBC Monterey Bay Bancorp of CA 10.13 3,535 35.8 15.63 9.88 10.13 0.00 -27.64 -29.21
MONT Montgomery Fin. Corp. of IN 8.13 1,361 11.1 10.75 8.06 8.38 -2.98 -20.68 -19.74
MYST Mystic Financial of MA* 11.06 2,445 27.0 13.00 10.00 11.00 0.55 -8.82 -9.71
NASB NASB Financial, Inc. of MO 11.75 9,003 105.8 23.13 10.00 11.75 0.00 -16.84 -11.32
NHTB NH Thrift Bancshares of NH 12.25 2,107 25.8 17.25 11.94 12.63 -3.01 -20.97 -20.97
NSLB NS&L Bancorp, Inc of Neosho MO 10.50 742 7.8 15.00 10.00 10.50 0.00 -2.14 -1.22
NMSB Newmil Bancorp, Inc. of CT* 12.94 3,678 47.6 13.38 9.50 13.13 -1.45 7.83 8.92
NBCP Niagara Bancorp MHC of NY(43.9* 10.25 26,954 127.3 11.06 9.25 10.44 -1.82 -8.89 0.00
NBSI North Bancshares of Chicago IL 10.50 1,231 12.9 14.38 10.38 10.50 0.00 -16.00 -16.00
FFFD North Central Bancshares of IA 15.88 2,357 37.4 18.75 15.81 16.00 -0.75 -5.92 -5.92
NEIB Northeast Indiana Bncrp of IN 12.88 1,785 23.0 16.02 11.59 12.88 0.00 -19.04 -15.43
NWSB Northwest Bcrp MHC of PA (27.7 7.63 47,357 100.2 11.00 7.50 8.06 -5.33 -23.70 -21.74
NWEQ Northwest Equity Corp. of WI(8) 22.25 825 18.4 24.50 18.50 22.25 0.00 -3.26 1.14
NTMG Nutmeg FS&LA of CT 8.06 1,429 11.5 9.64 7.38 8.06 0.00 -14.26 -10.94
OCFC OceanFirst Fin. Corp of NJ 17.13 13,167 225.6 19.25 13.06 17.13 0.00 14.20 3.01
ONFC Oneida Fincl MHC of NY (44.5) 10.50 3,471 16.7 11.00 7.75 10.75 -2.33 5.00 -4.55
OTFC Oregon Trail Fin. Corp. of OR 10.00 3,850 38.5 13.38 10.00 10.00 0.00 -24.53 -18.37
OFCP Ottawa Financial Corp. of MI 18.38 6,145 112.9 23.25 18.00 18.75 -1.97 -4.87 -4.87
PBOC PBOC Holdings of CA 8.63 20,424 176.3 10.88 7.66 8.88 -2.82 -14.81 -15.80
PFFB PFF Bancorp of Pomona CA 20.06 13,983 280.5 23.75 15.13 20.00 0.30 39.50 25.37
PHSB PHS Bancorp MHC of PA (45.0) 8.50 2,672 10.6 14.63 7.88 7.88 7.87 -37.64 -39.84
PSFI PS Financial of Chicago IL 12.25 1,669 20.4 13.13 9.50 12.25 0.00 17.34 22.50
PVFC PVF Capital Corp. of OH 10.63 4,385 46.6 14.88 9.55 12.00 -11.42 -2.57 0.57
PBCI Pamrapo Bancorp, Inc. of NJ 20.50 2,743 56.2 25.50 20.50 20.88 -1.82 -15.67 -14.15
PFED Park Bancorp of Chicago IL 15.00 1,975 29.6 16.50 13.50 15.50 -3.23 12.11 8.07
PVSA Parkvale Financial Corp of PA 17.00 6,020 102.3 24.50 17.00 17.75 -4.23 -21.84 -18.31
PBHC Pathfinder BC MHC of NY (43.3)* 8.13 2,661 9.6 12.00 7.94 8.38 -2.98 -15.58 -10.95
PEEK Peekskill Fin. Corp. of NY 13.00 1,820 23.7 16.69 12.06 13.00 0.00 -5.45 -18.44
PFSB PennFed Fin. Services of NJ 13.25 8,845 117.2 17.63 12.38 13.63 -2.79 2.87 1.92
PBKB People's Bancshares of MA* 17.63 3,332 58.7 21.50 17.38 18.25 -3.40 -15.04 -14.00
PFDC Peoples Bancorp of Auburn IN 15.81 3,184 50.3 20.63 15.50 15.81 0.00 -20.47 -20.95
PBCT Peoples Bank, MHC of CT (41.9)* 20.63 61,051 541.8 31.94 20.38 20.38 1.23 -23.59 -25.33
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
LARL Laurel Capital Group of PA 1.49 1.42 11.22 11.22 108.72
LSBX Lawrence Savings Bank of MA* 1.05 1.08 11.09 11.09 91.79
LFED Leeds Fed Bksr MHC of MD(33.2) 0.72 0.72 10.06 10.06 68.84
LXMO Lexington B&L Fin. Corp. of MO 0.61 0.60 15.66 14.71 106.61
LIBB Liberty Bancorp MHC of NJ(43.0 0.37 0.37 8.79 8.79 77.82
LFCO Life Financial Corp of CA(8) -0.49 -0.37 8.28 8.28 85.94
LNCB Lincoln Bancorp of IN 0.48 0.48 14.54 14.54 64.09
LOGN Logansport Fin. Corp. of IN 0.98 0.98 13.93 13.93 94.92
MAFB MAF Bancorp, Inc. of IL 1.95 1.88 14.45 11.87 182.42
MECH MECH Financial Inc of CT(8)* 2.49 2.58 18.39 18.26 219.61
MFBC MFB Corp. of Mishawaka IN 1.55 1.43 21.96 21.96 243.98
MSBF MSB Financial, Inc of MI 0.81 0.69 10.59 10.59 68.77
MARN Marion Capital Holdings of IN 1.53 1.38 22.46 21.98 135.35
MRKF Market Fin. Corp. of OH 0.55 0.31 11.58 11.58 44.04
MASB MassBank Corp. of Reading MA* 3.35 2.50 30.62 30.23 278.38
MTXC Matrix Bancorp, Inc of CO 1.42 1.15 8.54 8.54 157.48
MFLR Mayflower Co-Op. Bank of MA* 1.17 1.09 8.46 8.34 115.11
MDBK Medford Bancorp, Inc. of MA* 1.51 1.35 11.03 10.56 143.64
MBFC MegaBank Financial Corp of CO(8) 0.68 0.66 4.26 3.92 38.35
MWBX MetroWest Bank of MA* 0.55 0.55 3.78 3.78 52.33
METF Metropolitan Fin. Corp. of OH 0.71 0.52 5.72 5.41 195.69
MCBN Mid-Coast Bancorp of ME 0.51 0.35 7.31 7.31 100.49
MFFC Milton Fed. Fin. Corp. of OH 0.76 0.73 11.92 11.92 122.23
MBBC Monterey Bay Bancorp of CA 0.92 0.76 12.19 11.31 131.18
MONT Montgomery Fin. Corp. of IN 0.66 0.66 13.18 13.18 94.81
MYST Mystic Financial of MA* 0.64 0.56 13.55 13.55 92.01
NASB NASB Financial, Inc. of MO 1.40 0.88 8.57 8.39 86.71
NHTB NH Thrift Bancshares of NH 1.56 1.42 12.77 11.33 167.38
NSLB NS&L Bancorp, Inc of Neosho MO 0.66 0.61 14.25 14.14 89.81
NMSB Newmil Bancorp, Inc. of CT* 0.88 0.90 9.13 9.13 92.00
NBCP Niagara Bancorp MHC of NY(43.9* 0.67 0.66 8.74 8.23 62.33
NBSI North Bancshares of Chicago IL 0.48 0.46 9.21 9.21 106.17
FFFD North Central Bancshares of IA 1.83 1.81 16.66 14.10 151.84
NEIB Northeast Indiana Bncrp of IN 1.47 1.47 14.40 14.40 137.35
NWSB Northwest Bcrp MHC of PA (27.7 0.44 0.46 4.96 3.73 70.38
NWEQ Northwest Equity Corp. of WI(8) 1.34 1.23 15.50 15.50 114.75
NTMG Nutmeg FS&LA of CT 0.66 0.31 5.45 5.45 76.24
OCFC OceanFirst Fin. Corp of NJ 1.16 1.17 13.27 13.20 119.99
ONFC Oneida Fincl MHC of NY (44.5) 0.45 0.36 11.67 11.67 78.85
OTFC Oregon Trail Fin. Corp. of OR 0.77 0.77 14.71 14.71 92.00
OFCP Ottawa Financial Corp. of MI 1.51 1.45 12.57 10.60 157.54
PBOC PBOC Holdings of CA 1.58 1.55 8.08 8.00 175.54
PFFB PFF Bancorp of Pomona CA 1.68 1.62 15.91 15.76 211.09
PHSB PHS Bancorp MHC of PA (45.0) 0.64 0.64 10.18 10.18 97.99
PSFI PS Financial of Chicago IL 0.95 0.96 11.36 11.36 69.39
PVFC PVF Capital Corp. of OH 1.83 1.86 9.14 9.14 106.27
PBCI Pamrapo Bancorp, Inc. of NJ 1.70 1.70 17.59 17.55 160.30
PFED Park Bancorp of Chicago IL 1.36 1.35 15.96 15.96 116.28
PVSA Parkvale Financial Corp of PA 2.04 2.01 13.93 13.88 197.36
PBHC Pathfinder BC MHC of NY (43.3)* 0.38 0.30 7.67 6.53 82.49
PEEK Peekskill Fin. Corp. of NY 0.80 0.88 14.59 14.59 113.83
PFSB PennFed Fin. Services of NJ 1.32 1.28 12.53 11.33 180.16
PBKB People's Bancshares of MA* 2.90 1.56 11.84 11.37 309.38
PFDC Peoples Bancorp of Auburn IN 1.38 1.38 14.06 14.06 101.46
PBCT Peoples Bank, MHC of CT (41.9)* 1.56 1.28 12.66 10.53 164.89
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
PFFC Peoples Fin. Corp. of OH 7.50 1,265 9.5 11.50 7.25 7.25 3.45 -34.78 -31.82
PHBK Peoples Heritage Fin Grp of ME* 15.31 102,072 1,562.7 20.00 15.13 15.38 -0.46 -18.91 -23.45
PSFC Peoples Sidney Fin. Corp of OH 8.19 1,665 13.6 16.88 7.94 7.94 3.15 -51.48 -51.48
PERM Permanent Bancorp, Inc. of IN(8) 15.38 3,987 61.3 15.38 8.88 13.00 18.31 14.95 15.55
PCBC Perry Co. Fin. Corp. of MO 20.13 781 15.7 21.50 19.00 20.13 0.00 0.65 1.26
PHFC Pittsburgh Home Fin Corp of PA 13.00 1,787 23.2 15.13 12.00 13.13 -0.99 -11.14 -10.34
PFSL Pocahontas Bancorp of AR 6.00 5,815 34.9 8.50 5.75 6.25 -4.00 -23.86 -22.58
PTRS Potters Financial Corp of OH 11.88 982 11.7 18.18 10.50 11.88 0.00 -34.65 -34.65
PRBC Prestige Bancorp of PA 12.13 997 12.1 13.44 10.56 12.13 0.00 0.92 -0.08
PFNC Progress Financial Corp. of PA 12.38 5,609 69.4 16.43 11.43 12.50 -0.96 -7.13 5.00
PBCP Provident Bncp MHC of NY (46.7 16.13 8,280 62.3 16.38 9.88 16.25 -0.74 61.30 61.30
PROV Provident Fin. Holdings of CA 17.75 4,182 74.2 20.44 15.63 17.75 0.00 3.62 4.04
PULB Pulaski Financial Corp of MO 10.75 3,775 40.6 11.50 9.00 10.81 -0.56 13.16 8.81
PLSK Pulaski SB, MHC of NJ (47.0) 7.38 2,108 7.3 11.25 7.00 7.50 -1.60 -24.31 -26.20
QCFB QCF Bancorp of Virginia MN 24.75 1,116 27.6 26.63 24.75 24.75 0.00 -2.94 -2.94
QCBC Quaker City Bancorp of CA 16.75 5,385 90.2 18.00 14.63 16.75 0.00 0.00 4.69
QCSB Queens County Bancorp of NY* 25.75 21,238 546.9 35.69 25.75 28.06 -8.23 -10.62 -13.45
RELY Reliance Bancorp, Inc. of NY(8) 34.31 8,589 294.7 41.81 26.00 35.25 -2.67 17.78 23.37
RCBK Richmond County Fin Corp of NY 17.56 30,924 543.0 20.00 14.50 18.06 -2.77 8.06 9.34
RSBI Ridgewood Fin. MHC of NJ (47.0 5.63 3,180 8.4 11.88 5.56 5.56 1.26 -19.57 -19.57
RIVR River Valley Bancorp of IN 11.75 1,026 12.1 15.75 11.50 11.75 0.00 -24.19 -20.34
RVSB Riverview Bancorp of WA 10.38 5,090 52.8 13.50 9.88 10.75 -3.44 -13.50 -15.27
ROME Rome Bancp Inc MHC of NY (47.0* 6.31 3,452 10.7 6.94 6.00 6.63 -4.83 -9.86 -9.86
RSLN Roslyn Bancorp, Inc. of NY* 17.50 74,609 1,305.7 22.06 16.13 17.94 -2.45 0.00 -18.60
SGVB SGV Bancorp of W. Covina CA(8) 21.69 2,176 47.2 22.81 10.75 21.81 -0.55 70.12 73.52
SCFS Seacoast Fin Serv Corp of MA* 9.88 26,688 263.7 12.31 9.63 10.02 -1.40 1.02 -3.61
SKBO Skibo Fin Corp MHC of PA(44.9) 6.50 3,442 10.1 8.50 5.50 6.75 -3.70 -21.21 -14.81
SOBI Sobieski Bancorp of S. Bend IN 10.88 712 7.7 14.88 10.88 11.06 -1.63 -16.31 -16.31
SFFS Sound Fed Bp MHC of NY (44.1) 9.13 5,077 21.0 10.31 8.81 9.13 0.00 -2.67 -3.28
SJFC South Jersey Fin. Corp of NJ 13.75 3,604 49.6 15.00 10.63 14.00 -1.79 37.50 37.50
SSFC South Street Fin. Corp. of NC* 6.94 3,826 26.6 8.38 6.63 6.91 0.43 -7.47 -11.93
SBAN SouthBanc Shares Inc. of SC 20.75 3,226 66.9 23.25 18.25 21.88 -5.16 9.21 9.90
SCBS Southern Commun. Bncshrs of AL 10.00 1,031 10.3 13.38 9.75 11.50 -13.04 -25.26 -20.00
SMBC Southern Missouri Bncrp of MO 12.75 1,388 17.7 15.25 11.00 13.13 -2.89 -12.85 -12.85
SVRN Sovereign Bancorp, Inc. of PA 7.63 186,128 1,420.2 17.50 7.63 7.97 -4.27 -40.16 -46.46
STFR St. Francis Cap. Corp. of WI 18.25 10,157 185.4 22.63 17.25 19.00 -3.95 -9.88 -13.63
SFFC StateFed Financial Corp. of IA 10.25 1,509 15.5 12.50 9.00 10.25 0.00 2.50 2.50
SFIN Statewide Fin. Corp. of NJ(8) 24.38 4,055 98.9 24.81 17.25 24.38 0.00 36.35 28.32
STSA Sterling Financial Corp. of WA 11.63 8,090 94.1 17.44 11.56 11.63 0.00 -28.82 -31.59
SUFI Superior Financial Corp of AR 12.00 10,081 121.0 12.88 9.50 11.88 1.01 ***.** ***.**
THRD TF Financial Corp. of PA 12.50 3,043 38.0 21.19 12.50 13.25 -5.66 -33.33 -27.54
THTL Thistle Group Holdings of PA 6.63 7,805 51.7 9.94 6.63 6.69 -0.90 -30.65 -31.15
TSBK Timberland Bancorp of WA 11.50 5,217 60.0 13.06 10.75 11.50 0.00 -7.11 -6.12
TRIC Tri-County Bancorp of WY 11.08 891 9.9 14.69 8.25 10.19 8.73 -20.86 -20.86
TRYF Troy Financial Corp of NY 10.13 12,139 123.0 11.75 9.38 10.13 0.00 1.30 1.30
TWIN Twin City Bancorp, Inc. of TN 17.31 1,134 19.6 17.31 11.88 17.31 0.00 19.38 19.38
USAB USABancshares, Inc of PA(8)* 8.25 5,421 44.7 15.81 4.00 8.75 -5.71 94.12 83.33
UCBC Union Community Bancorp of IN 11.38 2,601 29.6 13.00 10.69 11.00 3.45 -6.18 1.16
UFBS Union Fincl. Bancshares of SC 8.38 1,357 11.4 14.50 8.38 8.38 0.00 -36.85 -34.84
UCFC United Community Fin. of OH 10.25 37,758 387.0 15.50 9.56 10.19 0.59 -27.46 -31.12
UBMT United Fin. Corp. of MT 18.31 1,665 30.5 23.88 17.75 18.75 -2.35 -16.77 -16.77
UPFC United PanAm Fin. Corp of CA(8) 1.94 16,594 32.2 5.00 1.25 1.94 0.00 -56.89 -53.70
UTBI United Tenn. Bancshares of TN 11.13 1,382 15.4 14.94 10.00 11.00 1.18 -5.28 -7.25
VCAP Virginia Capital Bcshrs of VA 15.88 10,886 172.9 16.81 11.94 16.00 -0.75 58.80 17.63
WHGB WHG Bancshares of MD 7.63 1,353 10.3 12.25 7.63 7.63 0.00 -33.65 -36.42
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
PFFC Peoples Fin. Corp. of OH 0.60 0.33 11.23 11.23 73.07
PHBK Peoples Heritage Fin Grp of ME* 1.27 1.47 8.35 7.23 135.99
PSFC Peoples Sidney Fin. Corp of OH 0.32 0.32 10.48 10.48 73.86
PERM Permanent Bancorp, Inc. of IN(8) 0.75 0.69 9.91 7.60 124.84
PCBC Perry Co. Fin. Corp. of MO 1.12 1.03 19.88 19.88 126.97
PHFC Pittsburgh Home Fin Corp of PA 1.28 1.29 12.33 12.19 232.65
PFSL Pocahontas Bancorp of AR 0.15 0.51 8.71 8.28 74.85
PTRS Potters Financial Corp of OH 1.36 1.31 11.09 11.09 144.74
PRBC Prestige Bancorp of PA 0.82 0.78 15.01 15.01 193.00
PFNC Progress Financial Corp. of PA 1.11 1.44 7.90 6.99 125.53
PBCP Provident Bncp MHC of NY (46.7 0.42 0.46 10.82 10.53 97.43
PROV Provident Fin. Holdings of CA 2.51 1.56 20.88 20.88 256.16
PULB Pulaski Financial Corp of MO 0.57 0.42 13.22 13.22 64.64
PLSK Pulaski SB, MHC of NJ (47.0) 0.57 0.43 11.25 11.25 110.51
QCFB QCF Bancorp of Virginia MN 1.88 1.88 18.41 18.41 141.04
QCBC Quaker City Bancorp of CA 1.83 1.78 15.39 15.39 190.30
QCSB Queens County Bancorp of NY* 1.49 1.48 6.61 6.61 95.47
RELY Reliance Bancorp, Inc. of NY(8) 2.42 2.41 19.99 13.79 288.61
RCBK Richmond County Fin Corp of NY 0.98 0.96 11.41 10.03 90.98
RSBI Ridgewood Fin. MHC of NJ (47.0 0.01 0.23 7.75 7.75 84.37
RIVR River Valley Bancorp of IN 0.92 0.93 16.70 16.66 131.73
RVSB Riverview Bancorp of WA 0.79 0.77 10.50 10.20 62.19
ROME Rome Bancp Inc MHC of NY (47.0* 0.52 0.45 11.08 11.08 67.79
RSLN Roslyn Bancorp, Inc. of NY* 0.09 0.91 9.49 9.46 104.03
SGVB SGV Bancorp of W. Covina CA(8) 1.11 1.14 15.07 14.37 227.26
SCFS Seacoast Fin Serv Corp of MA* 0.92 0.96 10.43 10.36 76.74
SKBO Skibo Fin Corp MHC of PA(44.9) 0.26 0.26 7.44 7.44 44.93
SOBI Sobieski Bancorp of S. Bend IN 0.86 0.86 17.75 17.75 153.90
SFFS Sound Fed Bp MHC of NY (44.1) 0.36 0.51 10.54 10.54 61.47
SJFC South Jersey Fin. Corp of NJ 0.08 0.78 15.87 15.87 94.08
SSFC South Street Fin. Corp. of NC* 0.15 0.13 7.06 7.06 46.37
SBAN SouthBanc Shares Inc. of SC 1.02 0.97 16.47 16.47 113.10
SCBS Southern Commun. Bncshrs of AL 0.60 0.60 7.91 7.91 61.90
SMBC Southern Missouri Bncrp of MO 1.22 1.09 16.51 16.51 120.19
SVRN Sovereign Bancorp, Inc. of PA 1.04 0.90 7.76 5.31 135.63
STFR St. Francis Cap. Corp. of WI 1.64 1.47 12.95 11.46 243.51
SFFC StateFed Financial Corp. of IA 0.69 0.67 10.65 10.65 59.79
SFIN Statewide Fin. Corp. of NJ(8) 1.36 1.43 13.27 13.25 183.41
STSA Sterling Financial Corp. of WA 1.34 1.22 14.60 7.57 310.73
SUFI Superior Financial Corp of AR 1.19 1.28 10.26 3.94 155.71
THRD TF Financial Corp. of PA 1.40 1.33 16.85 14.63 234.86
THTL Thistle Group Holdings of PA 0.58 0.56 10.00 10.00 69.69
TSBK Timberland Bancorp of WA 1.00 1.07 13.85 13.85 58.87
TRIC Tri-County Bancorp of WY 0.88 0.81 11.46 11.46 97.48
TRYF Troy Financial Corp of NY 0.15 0.46 14.86 14.83 75.38
TWIN Twin City Bancorp, Inc. of TN 1.09 0.82 12.02 12.02 107.78
USAB USABancshares, Inc of PA(8)* 0.12 -0.06 3.88 3.86 62.83
UCBC Union Community Bancorp of IN 0.73 0.72 14.60 14.60 45.93
UFBS Union Fincl. Bancshares of SC 1.23 1.06 10.86 8.88 151.55
UCFC United Community Fin. of OH 0.32 0.44 6.82 6.82 34.74
UBMT United Fin. Corp. of MT 1.47 1.44 17.83 16.71 159.64
UPFC United PanAm Fin. Corp of CA(8) -0.25 -1.09 4.79 4.68 33.14
UTBI United Tenn. Bancshares of TN 0.56 0.57 12.90 12.08 70.20
VCAP Virginia Capital Bcshrs of VA 0.30 0.28 15.90 15.90 50.57
WHGB WHG Bancshares of MD 0.55 0.55 11.54 11.54 113.13
</TABLE>
<PAGE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part One
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Market Capitalization Price Change Data
----------------------- -----------------------------------------------
Shares Market 52 Week (1) % Change From
--------------- -----------------------
Price/ Outst- Capital- Last Last 52 Wks Dec 31,
Financial Institution Share(1) anding ization(9) High Low Week Week Ago(2) 1998(2)
--------------------- ------- ------- ------- ------- ------- ------- ------- ------- --------
($) (000) ($Mil) ($) ($) ($) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
WSFS WSFS Financial Corp. of DE* 12.63 11,319 143.0 17.38 12.63 13.63 -7.34 -27.04 -25.18
WVFC WVS Financial Corp. of PA 12.88 3,036 39.1 15.38 12.75 12.75 1.02 -12.68 -15.54
WRNB Warren Bancorp of Peabody MA* 7.50 7,327 55.0 9.81 7.00 7.81 -3.97 -16.67 -17.22
WSBI Warwick Community Bncrp of NY* 10.38 5,949 61.8 16.13 9.75 11.06 -6.15 -31.93 -29.63
WFSL Washington Federal, Inc. of WA 18.69 54,232 1,013.6 25.56 18.69 19.38 -3.56 -16.08 -22.96
WAYN Wayne Svgs Bks MHC of OH (48.2 14.50 2,602 18.2 17.86 14.13 14.75 -1.69 -20.37 -17.71
WCFB Wbstr Cty FSB MHC of IA (45.7) 13.88 2,059 13.4 16.88 12.75 13.88 0.00 -17.13 -13.25
WBST Webster Financial Corp. of CT 22.13 38,066 842.4 32.00 21.88 21.88 1.14 -19.17 -19.35
WEFC Wells Fin. Corp. of Wells MN 12.38 1,451 18.0 16.50 11.56 12.38 0.00 -20.79 -21.40
WEBK West Essex MHC of NJ (42.2) 9.63 4,014 17.1 10.25 9.00 9.63 0.00 -0.62 2.01
WSTR WesterFed Fin. Corp. of MT 16.13 4,430 71.5 19.19 15.94 16.00 0.81 -15.68 -11.03
WOFC Western Ohio Fin. Corp. of OH 16.25 2,075 33.7 26.94 15.75 16.25 0.00 -25.93 -25.29
WEHO Westwood Hmstd Fin Corp of OH(8) 10.38 2,169 22.5 11.63 9.25 10.63 -2.35 5.06 9.26
WGBC Willow Grv Bcp MHC of PA (45.3 9.06 5,143 21.1 10.50 8.88 9.03 0.33 -9.40 -12.72
YFCB Yonkers Fin. Corp. of NY 17.13 2,239 38.4 19.00 13.50 17.13 0.00 31.77 21.83
YFED York Financial Corp. of PA 12.00 10,025 120.3 15.83 12.00 12.25 -2.04 -18.70 -20.32
<CAPTION>
Current Per Share Financials
----------------------------------------
Tangible
Trailing 12 Mo. Book Book
12 Mo. Core Value/ Value/ Assets/
Financial Institution EPS(3) EPS(3) Share Share(4) Share
--------------------- -------- ------- ------- ------- -------
($) ($) ($) ($) ($)
<S> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
WSFS WSFS Financial Corp. of DE* 1.46 1.58 8.05 8.03 150.27
WVFC WVS Financial Corp. of PA 1.39 1.38 8.77 8.77 125.38
WRNB Warren Bancorp of Peabody MA* 0.73 0.72 4.76 4.76 53.74
WSBI Warwick Community Bncrp of NY* 0.51 0.38 12.02 12.02 95.35
WFSL Washington Federal, Inc. of WA 2.11 2.07 13.83 12.95 113.65
WAYN Wayne Svgs Bks MHC of OH (48.2 0.53 0.49 9.63 9.63 112.89
WCFB Wbstr Cty FSB MHC of IA (45.7) 0.61 0.65 11.03 11.03 44.32
WBST Webster Financial Corp. of CT 2.37 2.23 15.05 11.50 236.35
WEFC Wells Fin. Corp. of Wells MN 1.43 1.36 16.20 16.20 132.91
WEBK West Essex MHC of NJ (42.2) 0.54 0.54 11.63 10.43 85.97
WSTR WesterFed Fin. Corp. of MT 1.62 1.51 20.41 16.24 228.90
WOFC Western Ohio Fin. Corp. of OH 0.69 -0.12 21.17 21.17 157.57
WEHO Westwood Hmstd Fin Corp of OH(8) 0.55 0.56 10.55 10.55 69.02
WGBC Willow Grv Bcp MHC of PA (45.3 0.74 0.74 11.32 10.96 95.28
YFCB Yonkers Fin. Corp. of NY 1.19 1.12 14.30 14.30 204.42
YFED York Financial Corp. of PA 0.94 0.76 10.91 10.91 154.24
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios
----------------------------------------------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5)
- --------------------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%)
Market Averages. SAIF-Insured Thrifts(no MHCs)
- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts(258) 11.80 11.49 0.83 7.72 7.59 0.78 7.17
NYSE Traded Companies(8) 7.65 7.06 0.79 11.28 8.97 0.62 9.97
AMEX Traded Companies(24) 11.55 11.44 0.58 4.77 5.60 0.61 5.04
NASDAQ Listed OTC Companies(226) 11.98 11.66 0.86 7.88 7.74 0.80 7.28
California Companies(17) 6.62 6.42 0.79 10.88 9.41 0.73 10.22
Florida Companies(7) 10.50 10.08 0.61 5.10 4.97 0.48 4.20
Mid-Atlantic Companies(48) 10.00 9.67 0.70 7.73 7.38 0.70 7.64
Mid-West Companies(118) 12.81 12.51 0.87 7.21 7.47 0.80 6.65
New England Companies(9) 8.90 8.62 0.67 8.72 8.21 0.63 7.62
North-West Companies(14) 13.48 12.67 1.08 8.48 8.54 1.02 7.81
South-East Companies(35) 13.99 13.83 0.87 7.21 6.75 0.85 6.81
South-West Companies(5) 7.41 7.12 0.93 12.24 11.92 0.72 9.50
Western Companies (Excl CA)(5) 13.34 13.34 0.95 8.81 8.18 0.87 7.73
Thrift Strategy(235) 12.27 11.99 0.84 7.45 7.53 0.79 6.98
Mortgage Banker Strategy(12) 6.70 5.76 0.73 10.71 10.07 0.62 9.22
Real Estate Strategy(5) 6.89 6.79 0.93 10.56 4.87 0.96 10.84
Diversified Strategy(5) 8.05 7.41 0.73 10.88 7.65 0.45 8.64
Retail Banking Strategy(1) 8.69 8.09 0.48 5.57 8.34 0.18 2.07
Companies Issuing Dividends(225) 12.21 11.91 0.87 7.75 7.71 0.82 7.23
Companies Without Dividends(33) 8.68 8.24 0.55 7.53 6.70 0.47 6.72
Equity/Assets less than 6%(26) 4.79 4.30 0.55 10.40 9.03 0.52 9.87
Equity/Assets 6-12%(130) 8.71 8.29 0.82 9.20 8.57 0.75 8.40
Equity/Assets greater than 12%(102) 17.64 17.50 0.93 5.12 5.95 0.89 4.88
Converted Last 3 Mths (no MHC)(1) 13.82 13.82 0.43 3.12 5.21 0.44 3.19
Actively Traded Companies(22) 7.96 7.28 1.01 12.46 9.58 0.95 11.86
Market Value Below $20 Million(74) 12.29 12.14 0.71 5.82 7.14 0.62 5.04
Holding Company Structure(251) 11.93 11.61 0.85 7.76 7.65 0.79 7.20
Assets Over $1 Billion(57) 7.96 7.26 0.83 10.62 8.92 0.76 9.71
Assets $500 Million-$1 Billion(36) 10.28 9.92 0.86 9.21 8.34 0.80 8.54
Assets $250-$500 Million(57) 11.69 11.45 0.83 7.02 7.21 0.83 6.99
Assets less than $250 Million(108) 14.49 14.37 0.84 5.99 6.81 0.76 5.41
Goodwill Companies(107) 9.42 8.64 0.80 8.81 7.95 0.73 8.08
Non-Goodwill Companies(151) 13.41 13.41 0.86 6.99 7.35 0.81 6.56
Acquirors of FSLIC Cases(7) 7.76 7.00 0.93 11.16 9.25 0.86 10.60
<CAPTION>
Asset Quality Ratios Pricing Ratios
------------------------- -----------------------------------------
Price/ Price/
NPAs Resvs/ Resvs/ Price/ Price/ Price/ Tang. Core
Financial Institution Assets NPAs Loans Earning Book Assets Book Earnings
- --------------------- ------- ------- ------- ------- ------- ------- ------- --------
(%) (%) (%) (X) (%) (%) (%) (x)
Market Averages. SAIF-Insured Thrifts(no MHCs)
- ----------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts(258) 0.58 170.89 0.86 12.90 100.17 11.25 105.15 13.93
NYSE Traded Companies(8) 1.47 197.05 2.25 10.39 124.43 9.03 129.15 9.90
AMEX Traded Companies(24) 0.45 163.63 0.82 14.36 83.51 9.39 84.61 14.54
NASDAQ Listed OTC Companies(226) 0.56 170.40 0.82 12.85 100.91 11.52 106.40 14.00
California Companies(17) 0.81 190.96 1.91 9.16 106.97 7.05 105.50 9.03
Florida Companies(7) 1.61 156.36 1.05 14.92 95.47 10.68 102.05 15.65
Mid-Atlantic Companies(48) 0.48 179.36 0.92 12.12 101.50 9.67 106.87 13.08
Mid-West Companies(118) 0.58 156.57 0.69 13.42 96.81 11.91 102.10 14.46
New England Companies(9) 0.32 252.36 0.97 11.67 100.52 8.36 107.23 14.97
North-West Companies(14) 0.47 185.82 0.76 12.49 100.99 12.54 113.05 12.58
South-East Companies(35) 0.49 194.86 0.80 14.83 107.37 14.05 109.28 15.54
South-West Companies(5) 0.63 72.75 0.63 8.79 102.58 7.29 113.24 12.94
Western Companies (Excl CA)(5) 0.79 143.59 1.70 13.16 100.27 11.72 100.27 14.26
Thrift Strategy(235) 0.54 170.37 0.80 13.10 98.47 11.55 102.73 14.11
Mortgage Banker Strategy(12) 0.53 195.46 0.90 10.78 109.29 7.49 133.01 13.18
Real Estate Strategy(5) 1.27 122.19 1.74 10.71 126.71 9.08 128.89 9.79
Diversified Strategy(5) 2.01 176.10 2.85 11.20 134.62 9.78 139.41 10.52
Retail Banking Strategy(1) 0.00 0.00 0.84 11.99 66.31 5.76 71.22 0.00
Companies Issuing Dividends(225) 0.52 170.25 0.81 13.14 101.39 11.78 105.74 14.09
Companies Without Dividends(33) 1.06 175.34 1.28 10.70 90.94 7.27 100.49 12.54
Equity/Assets less than 6%(26) 0.90 132.89 1.27 9.43 109.53 5.29 120.45 9.76
Equity/Assets 6-12%(130) 0.52 170.49 0.87 11.69 106.72 9.11 113.69 12.94
Equity/Assets greater than 12%(102) 0.58 181.94 0.75 15.69 89.25 15.59 90.25 16.45
Converted Last 3 Mths (no MHC)(1) 0.09 722.22 1.10 19.18 59.77 8.26 59.77 18.76
Actively Traded Companies(22) 0.61 150.12 0.93 11.02 133.52 10.62 147.88 11.76
Market Value Below $20 Million(74) 0.59 134.29 0.71 13.96 81.78 9.96 83.05 15.37
Holding Company Structure(251) 0.59 169.49 0.86 12.94 100.41 11.39 105.52 13.91
Assets Over $1 Billion(57) 0.76 166.58 1.26 10.98 117.09 9.37 131.87 12.01
Assets $500 Million-$1 Billion(36) 0.53 202.16 0.88 11.35 110.73 10.68 115.55 12.36
Assets $250-$500 Million(57) 0.43 201.32 0.76 12.95 98.64 11.31 101.26 13.44
Assets less than $250 Million(108) 0.57 146.80 0.69 14.48 88.11 12.46 89.15 15.82
Goodwill Companies(107) 0.69 166.16 1.03 12.18 106.46 9.63 118.92 12.91
Non-Goodwill Companies(151) 0.51 174.26 0.75 13.41 95.90 12.35 95.90 14.61
Acquirors of FSLIC Cases(7) 0.55 105.53 0.82 11.03 120.40 9.21 125.56 11.19
<CAPTION>
Dividend Data(6)
------------------------
Ind. Divi-
Div./ dend Payout
Financial Institution Share Yield Ratio(7)
- --------------------- ------- ------- --------
($) (%) (%)
<S> <C> <C> <C>
SAIF-Insured Thrifts(258) 0.36 2.80 34.60
NYSE Traded Companies(8) 0.21 1.11 12.29
AMEX Traded Companies(24) 0.37 3.13 41.52
NASDAQ Listed OTC Companies(226) 0.36 2.83 34.97
California Companies(17) 0.12 0.86 9.65
Florida Companies(7) 0.18 1.51 27.23
Mid-Atlantic Companies(48) 0.34 2.61 32.95
Mid-West Companies(118) 0.39 3.10 38.34
New England Companies(9) 0.39 2.69 30.72
North-West Companies(14) 0.44 3.13 38.99
South-East Companies(35) 0.39 3.13 38.31
South-West Companies(5) 0.39 2.20 20.67
Western Companies (Excl CA)(5) 0.33 2.96 41.66
Thrift Strategy(235) 0.37 2.92 36.31
Mortgage Banker Strategy(12) 0.24 1.74 19.60
Real Estate Strategy(5) 0.18 1.38 19.48
Diversified Strategy(5) 0.28 1.58 17.61
Retail Banking Strategy(1) 0.26 2.24 26.80
Companies Issuing Dividends(225) 0.41 3.17 38.91
Companies Without Dividends(33) 0.00 0.00 0.00
Equity/Assets less than 6%(26) 0.20 1.29 13.28
Equity/Assets 6-12%(130) 0.38 2.83 32.21
Equity/Assets greater than 12%(102) 0.38 3.16 44.56
Converted Last 3 Mths (no MHC)(1) 0.00 0.00 0.00
Actively Traded Companies(22) 0.46 2.55 29.77
Market Value Below $20 Million(74) 0.34 3.24 39.91
Holding Company Structure(251) 0.36 2.83 34.83
Assets Over $1 Billion(57) 0.32 2.02 23.70
Assets $500 Million-$1 Billion(36) 0.39 2.98 32.72
Assets $250-$500 Million(57) 0.40 2.95 38.36
Assets less than $250 Million(108) 0.35 3.10 40.14
Goodwill Companies(107) 0.36 2.59 31.40
Non-Goodwill Companies(151) 0.36 2.94 36.95
Acquirors of FSLIC Cases(7) 0.38 2.17 23.76
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1997 or 1998.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances; ROI (return on investment) is current EPS divided by
current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or
unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of institutions
included in the respective averages. All figures have been adjusted for
stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded companies,
and RP Financial, Inc. calculations. The information provided in this
report has been obtained from sources we believe are reliable, but we
cannot guarantee the accuracy or completeness of such information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios
----------------------------------------------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5)
- --------------------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%)
Market Averages. BIF-Insured Thrifts(no MHCs)
- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BIF-Insured Thrifts(49) 10.88 10.49 0.99 10.87 8.65 0.96 10.17
NYSE Traded Companies(4) 11.30 8.63 1.23 11.50 9.32 0.76 6.81
AMEX Traded Companies(4) 9.08 8.91 0.99 11.87 10.06 0.91 11.09
NASDAQ Listed OTC Companies(41) 11.04 10.80 0.97 10.71 8.45 0.98 10.34
California Companies(1) 11.09 11.07 1.53 14.28 16.83 1.53 14.21
Mid-Atlantic Companies(17) 12.18 11.34 0.93 8.78 6.73 0.89 8.44
New England Companies(27) 9.47 9.26 1.10 12.83 10.15 1.01 11.59
North-West Companies(3) 14.68 14.64 0.53 6.74 5.12 0.93 8.51
South-East Companies(1) 15.23 15.23 0.30 1.88 2.16 0.26 1.63
Thrift Strategy(40) 11.55 11.17 0.98 10.31 8.32 0.92 9.34
Mortgage Banker Strategy(4) 8.12 7.64 0.82 10.80 8.05 1.00 11.26
Real Estate Strategy(2) 9.97 9.96 1.45 14.30 13.28 1.44 14.16
Diversified Strategy(3) 6.11 5.27 1.00 15.57 10.20 1.06 16.63
Companies Issuing Dividends(44) 10.23 9.79 1.02 11.27 8.61 0.96 10.48
Companies Without Dividends(5) 17.62 17.62 0.77 6.76 9.04 0.96 6.97
Equity/Assets less than 6%(4) 4.67 4.49 0.92 18.81 13.24 0.76 14.85
Equity/Assets 6-12%(29) 8.30 7.90 1.09 12.96 9.65 1.05 12.42
Equity/Assets greater than 12%(16) 17.03 16.57 0.85 5.12 5.68 0.85 5.02
Converted Last 3 Mths (no MHC)(2) 25.12 25.12 0.17 -0.28 0.23 0.85 3.56
Actively Traded Companies(13) 8.75 8.30 1.14 13.68 10.96 1.02 11.72
Market Value Below $20 Million(4) 9.69 9.56 0.93 10.25 10.65 0.72 8.12
Holding Company Structure(41) 11.50 11.24 0.97 10.24 8.35 0.96 9.85
Assets Over $1 Billion(18) 9.99 9.10 1.12 12.88 9.36 1.08 11.91
Assets $500 Million-$1 Billion(11) 11.37 11.19 0.81 9.13 7.02 0.84 8.69
Assets $250-$500 Million(13) 10.44 10.30 1.07 11.77 9.63 1.06 11.70
Assets less than $250 Million(7) 13.28 13.26 0.84 6.86 7.75 0.65 5.18
Goodwill Companies(26) 8.73 7.95 1.00 12.00 9.79 0.93 10.87
Non-Goodwill Companies(22) 12.45 12.45 0.97 9.93 7.49 0.97 9.68
<CAPTION>
Asset Quality Ratios Pricing Ratios
------------------------- -----------------------------------------
Price/ Price/
NPAs Resvs/ Resvs/ Price/ Price/ Price/ Tang. Core
Financial Institution Assets NPAs Loans Earning Book Assets Book Earnings
- --------------------- ------- ------- ------- ------- ------- ------- ------- --------
(%) (%) (%) (X) (%) (%) (%) (x)
Market Averages. BIF-Insured Thrifts(no MHCs)
- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BIF-Insured Thrifts(49) 0.38 258.67 1.24 12.05 119.47 12.27 127.09 13.78
NYSE Traded Companies(4) 0.84 85.18 0.99 11.91 122.25 13.95 170.44 19.92
AMEX Traded Companies(4) 0.55 282.09 1.28 11.34 121.15 10.46 123.92 13.05
NASDAQ Listed OTC Companies(41) 0.33 273.19 1.26 12.14 119.06 12.32 123.92 13.33
California Companies(1) 1.08 164.55 1.95 5.94 79.62 8.83 79.77 5.97
Mid-Atlantic Companies(17) 0.50 168.46 1.05 15.46 113.95 14.34 129.28 18.08
New England Companies(27) 0.33 297.86 1.36 10.73 128.07 11.11 132.88 11.97
North-West Companies(3) 0.07 900.00 1.35 9.39 93.85 11.76 94.05 10.16
South-East Companies(1) 0.13 190.67 0.37 0.00 98.30 14.97 98.30 0.00
Thrift Strategy(40) 0.36 269.78 1.17 12.65 114.23 12.55 120.73 14.45
Mortgage Banker Strategy(4) 0.32 225.48 1.03 8.74 148.48 12.34 159.59 14.16
Real Estate Strategy(2) 0.74 220.84 1.73 8.11 118.59 11.39 118.67 8.19
Diversified Strategy(3) 0.50 209.67 1.99 10.00 153.92 9.32 176.59 9.44
Companies Issuing Dividends(44) 0.37 255.64 1.19 12.29 124.46 12.29 132.85 14.01
Companies Without Dividends(5) 0.49 311.78 2.02 8.93 69.53 12.02 69.57 10.77
Equity/Assets less than 6%(4) 0.30 349.43 1.61 7.74 141.67 6.62 147.66 10.00
Equity/Assets 6-12%(29) 0.39 233.72 1.33 10.90 133.89 11.60 141.83 12.04
Equity/Assets greater than 12%(16) 0.39 279.74 0.97 15.87 89.51 14.94 97.05 18.79
Converted Last 3 Mths (no MHC)(2) 0.06 0.00 1.73 15.55 65.12 16.50 65.12 15.55
Actively Traded Companies(13) 0.24 338.97 1.15 9.56 124.54 10.27 134.86 10.99
Market Value Below $20 Million(4) 0.35 302.29 1.39 11.47 106.70 9.88 109.26 14.42
Holding Company Structure(41) 0.33 275.18 1.21 12.46 115.54 12.54 120.52 13.89
Assets Over $1 Billion(18) 0.49 184.82 1.22 11.08 129.28 12.96 147.75 13.38
Assets $500 Million-$1 Billion(11) 0.39 297.34 1.29 14.27 116.69 11.54 119.73 16.03
Assets $250-$500 Million(13) 0.29 321.12 1.36 10.33 121.08 11.94 122.99 10.52
Assets less than $250 Million(7) 0.20 303.76 1.00 14.30 96.79 12.40 97.15 17.73
Goodwill Companies(26) 0.44 244.81 1.24 10.70 125.88 10.57 140.47 12.81
Non-Goodwill Companies(22) 0.30 279.00 1.25 13.50 114.52 13.78 114.52 14.91
<CAPTION>
Dividend Data(6)
------------------------
Ind. Divi-
Div./ dend Payout
Financial Institution Share Yield Ratio(7)
- --------------------- ------- ------- --------
($) (%) (%)
Market Averages. BIF-Insured Thrifts(no MHCs)
- ---------------------------------------------
<S> <C> <C> <C>
BIF-Insured Thrifts(49) 0.43 2.79 32.96
NYSE Traded Companies(4) 0.52 2.52 32.21
AMEX Traded Companies(4) 0.41 2.82 30.08
NASDAQ Listed OTC Companies(41) 0.42 2.80 33.36
California Companies(1) 0.00 0.00 0.00
Mid-Atlantic Companies(17) 0.45 2.57 39.31
New England Companies(27) 0.46 2.97 31.04
North-West Companies(3) 0.23 2.24 32.06
South-East Companies(1) 0.40 5.76 0.00
Thrift Strategy(40) 0.43 2.78 34.09
Mortgage Banker Strategy(4) 0.59 2.71 22.95
Real Estate Strategy(2) 0.20 2.67 27.40
Diversified Strategy(3) 0.44 3.00 30.53
Companies Issuing Dividends(44) 0.47 3.06 35.56
Companies Without Dividends(5) 0.00 0.00 0.00
Equity/Assets less than 6%(4) 0.35 2.53 18.04
Equity/Assets 6-12%(29) 0.51 3.01 33.99
Equity/Assets greater than 12%(16) 0.31 2.46 35.77
Converted Last 3 Mths (no MHC)(2) 0.00 0.00 0.00
Actively Traded Companies(13) 0.57 3.52 33.22
Market Value Below $20 Million(4) 0.38 2.33 28.98
Holding Company Structure(41) 0.41 2.69 32.55
Assets Over $1 Billion(18) 0.49 2.64 29.10
Assets $500 Million-$1 Billion(11) 0.42 2.84 41.78
Assets $250-$500 Million(13) 0.42 2.98 31.21
Assets less than $250 Million(7) 0.29 2.67 30.74
Goodwill Companies(26) 0.48 2.91 31.13
Non-Goodwill Companies(22) 0.39 2.78 37.02
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1997 or 1998.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances; ROI (return on investment) is current EPS divided by
current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information provided
in this report has been obtained from sources we believe are reliable,
but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios
----------------------------------------------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5)
- --------------------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%)
Market Averages. MHC Institutions
- ---------------------------------
<S> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts(25) 12.79 12.61 0.67 5.37 5.35 0.69 5.41
BIF-Insured Thrifts(6) 15.90 15.32 1.16 7.39 6.84 1.05 6.60
AMEX Traded Companies(1) 23.78 23.78 1.10 4.50 6.32 1.14 4.65
NASDAQ Listed OTC Companies(30) 13.05 12.78 0.76 5.80 5.61 0.74 5.67
Florida Companies(2) 8.92 8.84 0.53 6.76 6.24 0.49 6.22
Mid-Atlantic Companies(22) 12.82 12.51 0.69 5.39 5.58 0.69 5.39
Mid-West Companies(4) 15.17 15.17 0.82 5.52 5.14 0.89 5.73
New England Companies(2) 19.04 18.39 1.65 9.57 7.48 1.42 8.06
South-East Companies(1) 16.73 16.73 0.96 5.24 3.96 0.86 4.70
Thrift Strategy(30) 13.59 13.36 0.76 5.57 5.57 0.75 5.51
Diversified Strategy(1) 7.68 6.39 0.95 11.62 7.56 0.78 9.54
Companies Issuing Dividends(26) 12.84 12.52 0.79 6.17 5.75 0.76 5.86
Companies Without Dividends(5) 16.31 16.31 0.66 3.65 5.05 0.75 4.49
Equity/Assets less than 6%(1) 4.69 4.52 0.35 6.61 5.93 0.31 6.00
Equity/Assets 6-12%(14) 9.34 8.92 0.59 6.21 5.67 0.56 5.89
Equity/Assets greater than 12%(16) 17.49 17.35 0.94 5.32 5.59 0.95 5.39
Market Value Below $20 Million(5) 13.90 13.90 0.67 4.50 5.78 0.66 4.57
Holding Company Structure(29) 13.67 13.43 0.76 5.51 5.48 0.76 5.50
Assets Over $1 Billion(7) 10.55 9.87 0.82 8.05 6.21 0.84 7.92
Assets $500 Million-$1 Billion(2) 20.75 20.60 1.41 6.28 5.00 1.29 6.06
Assets $250-$500 Million(13) 11.99 11.85 0.60 4.90 5.17 0.62 5.06
Assets less than $250 Million(9) 16.01 15.86 0.83 5.11 6.00 0.77 4.60
Goodwill Companies(10) 10.36 9.55 0.75 7.43 6.01 0.72 7.04
Non-Goodwill Companies(21) 14.84 14.84 0.77 4.97 5.46 0.77 4.97
MHC Institutions(31) 13.40 13.13 0.77 5.76 5.64 0.76 5.64
MHC Converted Last 3 Months(1) 16.34 16.34 0.77 4.69 8.24 0.66 4.06
<CAPTION>
Asset Quality Ratios Pricing Ratios
------------------------- -----------------------------------------
Price/ Price/
NPAs Resvs/ Resvs/ Price/ Price/ Price/ Tang. Core
Financial Institution Assets NPAs Loans Earning Book Assets Book Earnings
- --------------------- ------- ------- ------- ------- ------- ------- ------- --------
(%) (%) (%) (X) (%) (%) (%) (x)
Market Averages. MHC Institutions
- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SAIF-Insured Thrifts(25) 0.38 170.52 0.74 19.12 101.66 12.58 105.19 19.06
BIF-Insured Thrifts(6) 0.45 167.26 1.26 15.10 108.49 16.30 118.28 17.20
AMEX Traded Companies(1) 0.43 201.40 1.33 15.83 71.11 16.91 71.11 15.32
NASDAQ Listed OTC Companies(30) 0.39 168.89 0.82 18.38 104.04 13.18 108.94 18.80
Florida Companies(2) 0.18 259.26 0.53 16.06 100.45 8.30 102.51 17.48
Mid-Atlantic Companies(22) 0.43 145.79 0.85 18.06 97.31 11.89 102.30 18.33
Mid-West Companies(4) 0.41 183.18 0.40 21.29 112.38 16.92 112.38 20.09
New England Companies(2) 0.29 212.98 1.92 13.38 132.51 21.77 148.99 15.78
South-East Companies(1) 0.15 427.76 0.89 25.27 136.19 22.78 136.19 28.14
Thrift Strategy(30) 0.39 168.49 0.81 18.47 100.98 13.33 104.78 18.77
Diversified Strategy(1) 0.49 212.98 1.70 13.22 162.95 12.51 195.92 16.12
Companies Issuing Dividends(26) 0.41 163.44 0.81 18.48 108.59 13.55 114.24 18.95
Companies Without Dividends(5) 0.33 202.67 0.98 17.14 73.81 12.02 73.81 17.39
Equity/Assets less than 6%(1) 0.20 100.74 0.30 16.86 115.91 5.43 120.03 18.59
Equity/Assets 6-12%(14) 0.51 152.98 0.83 17.10 112.18 10.06 121.19 18.29
Equity/Assets greater than 12%(16) 0.30 190.46 0.88 19.27 94.12 16.62 95.17 18.98
Market Value Below $20 Million(5) 0.52 176.14 0.85 14.08 75.89 10.51 75.89 17.62
Holding Company Structure(29) 0.36 173.28 0.82 18.70 101.42 13.44 105.35 18.88
Assets Over $1 Billion(7) 0.32 134.76 0.74 16.51 127.34 12.52 143.37 16.05
Assets $500 Million-$1 Billion(2) 0.52 71.79 1.55 13.53 125.57 23.79 127.62 15.44
Assets $250-$500 Million(13) 0.31 184.03 0.72 19.87 94.67 11.04 95.60 19.56
Assets less than $250 Million(9) 0.54 187.97 0.93 18.10 91.02 14.84 93.08 19.91
Goodwill Companies(10) 0.52 127.14 0.87 16.03 122.45 12.12 137.15 17.34
Non-Goodwill Companies(21) 0.33 191.39 0.82 19.31 93.71 13.86 93.71 19.28
MHC Institutions(31) 0.39 169.98 0.84 18.29 102.98 13.30 107.72 18.68
MHC Converted Last 3 Months(1) 0.39 207.53 1.37 12.13 56.95 9.31 56.95 14.02
<CAPTION>
Dividend Data(6)
------------------------
Ind. Divi-
Div./ dend Payout
Financial Institution Share Yield Ratio(7)
- --------------------- ------- ------- --------
($) (%) (%)
Market Averages. MHC Institutions
- ---------------------------------------------
<S> <C> <C> <C>
SAIF-Insured Thrifts(25) 0.31 3.11 33.93
BIF-Insured Thrifts(6) 0.34 2.44 37.65
AMEX Traded Companies(1) 0.00 0.00 0.00
NASDAQ Listed OTC Companies(30) 0.32 3.08 36.49
Florida Companies(2) 0.58 4.34 27.12
Mid-Atlantic Companies(22) 0.22 2.57 32.43
Mid-West Companies(4) 0.54 4.40 42.25
New England Companies(2) 0.68 3.93 52.34
South-East Companies(1) 0.22 1.78 44.90
Thrift Strategy(30) 0.29 2.90 33.22
Diversified Strategy(1) 1.12 5.43 71.79
Companies Issuing Dividends(26) 0.37 3.56 44.59
Companies Without Dividends(5) 0.00 0.00 0.00
Equity/Assets less than 6%(1) 1.00 6.90 0.00
Equity/Assets 6-12%(14) 0.32 3.04 43.13
Equity/Assets greater than 12%(16) 0.26 2.69 25.92
Market Value Below $20 Million(5) 0.12 1.55 19.68
Holding Company Structure(29) 0.29 2.88 32.79
Assets Over $1 Billion(7) 0.48 3.61 42.30
Assets $500 Million-$1 Billion(2) 0.18 1.59 30.72
Assets $250-$500 Million(13) 0.29 3.17 35.92
Assets less than $250 Million(9) 0.24 2.54 29.49
Goodwill Companies(10) 0.40 3.20 45.27
Non-Goodwill Companies(21) 0.27 2.88 28.23
MHC Institutions(31) 0.31 2.98 34.90
MHC Converted Last 3 Months(1) 0.00 0.00 0.00
</TABLE>
(1) Average of high/low or bid/ask price per share.
(2) Or since offering price if converted or first listed in 1997 or 1998.
Percent change figures are actual year-to-date and are not annualized
(3) EPS (earnings per share) is based on actual trailing twelve month data and
is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios
based on trailing twelve month common earnings and average common equity
and assets balances; ROI (return on investment) is current EPS divided by
current price.
(6) Annualized, based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing twelve month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities
or unusual operating characteristics.
* All thrifts are SAIF insured unless otherwise noted with an asterisk.
Parentheses following market averages indicate the number of
institutions included in the respective averages. All figures have been
adjusted for stock splits, stock dividends, and secondary offerings.
Source: Corporate reports and offering circulars for publicly traded
companies, and RP Financial, Inc. calculations. The information provided
in this report has been obtained from sources we believe are reliable,
but we cannot guarantee the accuracy or completeness of such
information.
Copyright (c) 1999 by RP Financial, LC.
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- ----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ___________________ _______________ NPAs Resvs/ Resvs/
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loans
- --------------------- ------ ------ ------- ------- ------- ------- ------- ------- ------- ------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NYSE Traded Companies
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CF Charter One Financial of OH 7.69 7.11 1.04 13.27 7.97 1.25 15.94 0.48 117.09 0.79
CFB Commercial Federal Corp. of NE 7.42 5.51 0.82 10.65 10.19 0.88 11.46 0.81 75.98 0.83
DME Dime Bancorp, Inc. of NY* 6.52 5.09 1.10 16.82 13.94 0.60 9.27 0.45 134.73 0.96
DSL Downey Financial Corp. of CA 6.07 6.02 0.82 11.50 10.15 0.70 9.78 0.41 102.32 0.47
FED FirstFed Fin. Corp. of CA 6.07 6.05 0.94 14.63 14.35 0.93 14.48 0.37 525.69 2.43
GSB Golden State Bancorp of CA 2.61 1.04 0.33 11.90 8.57 0.40 14.64 0.44 231.76 1.73
GDW Golden West Fin. Corp. of CA 7.81 7.81 1.22 15.20 9.04 1.15 14.37 0.65 89.55 0.90
GPT GreenPoint Fin. Corp. of NY* 13.46 7.25 1.29 9.76 7.17 0.63 4.74 1.55 47.02 1.17
JSB JSB Financial, Inc. of NY(8)* 23.45 23.45 1.99 8.44 6.67 1.99 8.44 0.08 470.82 0.48
OCN Ocwen Financial Corp. of FL 15.62 15.02 0.25 1.77 2.24 -0.60 -4.23 8.24 11.19 2.29
SIB Staten Island Bancorp of NY* 13.92 13.54 1.31 7.91 6.84 1.06 6.41 0.51 73.78 0.83
WES Westcorp Inc. of Orange CA 7.93 7.91 0.91 11.32 9.23 0.27 3.33 0.34 422.78 8.52
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 9.21 9.21 0.77 7.06 7.31 0.76 6.92 0.30 306.26 1.13
ANE Alliance Bncp of New Eng of CT* 4.95 4.89 0.99 17.06 13.96 0.93 15.96 0.22 471.56 1.68
BKC American Bank of Waterbury CT* 8.06 7.84 1.40 16.02 9.35 1.30 14.87 1.17 85.99 1.86
BYS Bay State Bancorp of MA 13.27 13.27 0.65 3.97 5.47 0.64 3.93 0.45 176.35 0.95
BFD BostonFed Bancorp of MA 6.86 6.64 0.71 9.99 11.43 0.59 8.24 0.10 800.08 1.00
CNY Carver Bancorp, Inc. of NY 7.92 7.69 -0.83 -10.72 -16.54 0.12 1.49 1.08 79.95 1.39
CBK Citizens First Fin.Corp. of IL 11.29 11.29 0.52 4.31 6.33 0.40 3.29 0.42 121.12 0.61
EFC EFC Bancorp, Inc of IL 14.41 14.41 0.90 4.81 7.03 0.90 4.81 0.41 75.33 0.40
EBI Equality Bancorp, Inc. of MO 7.54 7.54 0.37 4.36 6.54 -0.12 -1.45 0.23 49.80 0.40
ESX Essex Bancorp of Norfolk VA(8) 0.61 0.58 0.59 NM NM 0.59 NM 0.58 106.79 0.71
FCB Falmouth Bancorp, Inc. of MA* 16.23 16.23 0.84 4.61 5.29 0.65 3.55 NA NA 0.70
FAB FirstFed America Bancorp of MA 7.18 7.18 0.56 7.44 9.06 0.55 7.31 0.08 NA 1.49
GAF GA Financial Corp. of PA 9.77 9.68 0.89 7.55 9.55 0.90 7.67 0.21 89.25 0.50
GOV Gouverneur Bcp MHC of NY (45.0 23.78 23.78 1.10 4.50 6.32 1.14 4.65 0.43 201.40 1.33
HBS Haywood Bancshares, Inc. of NC(8) 14.75 14.32 0.99 6.80 5.86 0.92 6.34 0.43 145.61 0.85
KNK Kankakee Bancorp, Inc. of IL 9.08 7.76 0.40 4.17 5.90 0.40 4.17 0.65 84.45 0.82
KYF Kentucky First Bancorp of KY 17.74 17.74 1.11 6.31 7.41 1.11 6.31 0.94 57.44 0.87
NBN Northeast Bancorp of ME* 7.07 6.70 0.73 9.79 11.63 0.74 10.00 0.27 288.72 0.89
NEP Northeast PA Fin. Corp of PA 12.91 12.91 0.85 5.45 8.32 0.80 5.17 0.19 223.40 0.73
PDB Piedmont Bancorp, Inc. of NC 13.77 13.77 0.78 5.20 5.33 0.86 5.70 0.75 107.33 1.10
SPN Security of PA Financial of PA 17.34 17.34 -0.04 -0.21 -0.32 -0.09 -0.49 0.67 49.54 0.55
SZB SouthFirst Bancshares of AL 9.95 9.56 0.30 3.07 5.11 0.08 0.81 NA NA 0.80
SRN Southern Banc Company of AL 16.11 16.01 0.59 3.41 6.08 0.59 3.41 NA NA 0.23
TSH Teche Holding Company of LA 11.63 11.63 0.85 6.73 9.64 0.84 6.68 NA NA 1.02
FTF Texarkana Fst. Fin. Corp of AR 13.11 13.11 1.67 12.72 11.32 1.65 12.60 0.53 93.08 0.62
THR Three Rivers Fin. Corp. of MI(8) 10.95 10.92 0.61 5.27 5.50 0.51 4.41 0.76 71.14 0.76
WSB Washington SB, FSB of MD 9.21 9.21 0.38 4.27 6.80 0.32 3.53 0.43 102.10 1.00
WFI Winton Financial Corp. of OH 6.90 6.82 0.70 9.80 5.05 0.84 11.76 NA NA NA
WRO Woronoco Bancorp, Inc of MA 17.38 17.38 0.10 0.56 0.83 0.72 3.89 0.23 202.61 0.78
NASDAQ Listed OTC Companies
- ---------------------------
AMFC AMB Financial Corp. of IN 9.50 9.50 0.54 5.05 6.72 0.63 5.90 0.76 62.17 0.57
ASBP ASB Financial Corp. of OH 10.37 10.37 0.92 7.61 7.46 0.88 7.28 0.24 250.68 0.84
ABBK Abington Bancorp of MA* 4.54 4.04 0.69 13.06 11.01 0.48 9.08 0.10 540.09 0.92
AABC Access Anytime Bancorp of NM 8.65 8.65 1.29 15.63 16.50 0.31 3.73 0.65 77.25 0.65
AFBC Advance Fin. Bancorp of WV 10.87 10.87 0.68 5.70 7.19 0.64 5.38 0.55 80.80 0.53
ALBC Albion Banc Corp. of Albion NY(8) 8.29 8.29 0.31 3.73 2.10 0.40 4.78 0.54 67.92 0.46
ABCL Alliance Bancorp, Inc. of IL 8.39 8.33 0.93 10.35 9.86 0.88 9.82 0.21 154.88 0.49
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NYSE Traded Companies
- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CF Charter One Financial of OH 12.54 164.09 12.63 177.66 10.44 0.64 3.42 42.95
CFB Commercial Federal Corp. of NE 9.81 102.74 7.62 138.36 9.12 0.28 1.66 16.28
DME Dime Bancorp, Inc. of NY* 7.18 116.45 7.60 149.18 13.03 0.24 1.55 11.11
DSL Downey Financial Corp. of CA 9.86 108.07 6.56 108.97 11.58 0.36 1.82 17.91
FED FirstFed Fin. Corp. of CA 6.97 107.82 6.55 108.25 7.04 0.00 0.00 0.00
GSB Golden State Bancorp of CA 11.67 145.38 3.79 NM 9.48 0.00 0.00 0.00
GDW Golden West Fin. Corp. of CA 11.07 167.67 13.09 167.67 11.71 0.21 0.65 7.19
GPT GreenPoint Fin. Corp. of NY* 13.95 126.73 17.06 235.19 28.73 0.88 3.65 50.87
JSB JSB Financial, Inc. of NY(8)* 14.99 127.23 29.84 127.23 14.99 1.80 3.51 52.63
OCN Ocwen Financial Corp. of FL NM 79.81 12.47 83.00 NM 0.00 0.00 0.00
SIB Staten Island Bancorp of NY* 14.61 123.57 17.19 126.95 18.02 0.44 2.37 34.65
WES Westcorp Inc. of Orange CA 10.84 119.88 9.50 120.16 NM 0.20 1.29 13.99
AMEX Traded Companies
- ---------------------
ANA Acadiana Bancshares, Inc of LA 13.68 111.31 10.25 111.31 13.96 0.52 2.55 34.90
ANE Alliance Bncp of New Eng of CT* 7.16 132.93 6.58 134.55 7.66 0.24 2.70 19.35
BKC American Bank of Waterbury CT* 10.70 175.61 14.15 180.60 11.53 0.92 4.13 44.23
BYS Bay State Bancorp of MA 18.27 75.10 9.97 75.10 18.45 0.32 1.68 30.77
BFD BostonFed Bancorp of MA 8.75 86.36 5.92 89.14 10.62 0.48 3.32 29.09
CNY Carver Bancorp, Inc. of NY NM 64.57 5.11 66.45 NM 0.00 0.00 NM
CBK Citizens First Fin.Corp. of IL 15.79 71.43 8.06 71.43 20.69 0.20 1.67 26.32
EFC EFC Bancorp, Inc of IL 14.22 81.54 11.75 81.54 14.22 0.40 3.85 54.79
EBI Equality Bancorp, Inc. of MO 15.29 70.13 5.29 70.13 NM 0.24 3.49 53.33
ESX Essex Bancorp of Norfolk VA(8) 0.95 84.46 0.51 87.41 0.95 0.00 0.00 0.00
FCB Falmouth Bancorp, Inc. of MA* 18.90 94.69 15.36 94.69 24.60 0.28 1.81 34.15
FAB FirstFed America Bancorp of MA 11.04 82.99 5.96 82.99 11.24 0.28 2.29 25.23
GAF GA Financial Corp. of PA 10.47 91.93 8.98 92.80 10.30 0.64 4.97 52.03
GOV Gouverneur Bcp MHC of NY (45.0 15.83 71.11 16.91 71.11 15.32 0.00 0.00 0.00
HBS Haywood Bancshares, Inc. of NC(8) 17.06 115.16 16.98 118.62 18.30 0.64 3.18 54.24
KNK Kankakee Bancorp, Inc. of IL 16.96 75.03 6.81 87.77 16.96 0.48 2.19 37.21
KYF Kentucky First Bancorp of KY 13.49 86.57 15.36 86.57 13.49 0.50 4.88 65.79
NBN Northeast Bancorp of ME* 8.60 81.38 5.75 85.84 8.42 0.21 2.63 22.58
NEP Northeast PA Fin. Corp of PA 12.03 71.55 9.24 71.55 12.68 0.24 2.56 30.77
PDB Piedmont Bancorp, Inc. of NC 18.76 102.20 14.07 102.20 17.13 0.48 6.09 NM
SPN Security of PA Financial of PA NM 66.20 11.48 66.20 NM 0.20 2.13 NM
SZB SouthFirst Bancshares of AL 19.58 62.38 6.21 64.96 NM 0.60 5.78 NM
SRN Southern Banc Company of AL 16.46 59.78 9.63 60.13 16.46 0.35 3.73 61.40
TSH Teche Holding Company of LA 10.37 73.88 8.59 73.88 10.45 0.50 3.74 38.76
FTF Texarkana Fst. Fin. Corp of AR 8.83 112.31 14.73 112.31 8.91 0.68 3.53 31.19
THR Three Rivers Fin. Corp. of MI(8) 18.17 100.84 11.04 101.10 21.71 0.46 2.94 53.49
WSB Washington SB, FSB of MD 14.70 64.14 5.90 64.14 17.79 0.10 2.96 43.48
WFI Winton Financial Corp. of OH 19.82 176.44 12.17 178.39 16.51 0.32 2.48 49.23
WRO Woronoco Bancorp, Inc of MA NM 67.81 11.79 67.81 17.30 0.17 1.75 NM
NASDAQ Listed OTC Companies
- ---------------------------
AMFC AMB Financial Corp. of IN 14.89 82.71 7.86 82.71 12.74 0.32 2.42 35.96
ASBP ASB Financial Corp. of OH 13.41 116.94 12.13 116.94 14.02 0.40 4.32 57.97
ABBK Abington Bancorp of MA* 9.09 127.94 5.80 143.76 13.07 0.20 1.72 15.63
AABC Access Anytime Bancorp of NM 6.06 88.44 7.65 88.44 25.42 0.00 0.00 0.00
AFBC Advance Fin. Bancorp of WV 13.91 79.67 8.66 79.67 14.74 0.40 3.23 44.94
ALBC Albion Banc Corp. of Albion NY(8) NM 176.10 14.61 176.10 NM 0.12 0.79 37.50
ABCL Alliance Bancorp, Inc. of IL 10.14 113.35 9.52 114.22 10.69 0.56 3.15 32.00
</TABLE>
<PAGE>
<TABLE>
RP FINANCIAL, LC.
-----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700 Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
Key Financial Ratios
----------------------------------------------------------
Tang.
Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5)
--------------------- ------- ------- ------- ------- ------- ------- -------
(%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
---------------------------------------
ALLB Alliance Bank MHC of PA (18.7) 9.46 9.46 0.76 7.42 7.33 0.76 7.42
AHCI Ambanc Holding Co., Inc. of NY* 10.63 9.59 0.49 4.32 4.39 0.49 4.32
ASBI Ameriana Bancorp of IN 9.52 9.11 0.88 8.25 7.15 0.76 7.12
AMFH American Fin. Holdings of CT* 27.51 27.51 1.25 4.56 6.43 1.25 4.56
ABCW Anchor Bancorp Wisconsin of WI 8.04 8.04 0.77 10.78 4.87 0.88 12.26
ANDB Andover Bancorp, Inc. of MA* 8.72 8.72 1.26 14.60 9.70 1.27 14.71
ASFC Astoria Financial Corp. of NY 5.72 4.72 0.56 9.05 7.02 0.56 9.09
BCSB BCSB Bankcorp MHC of MD (38.6) 15.15 15.15 0.50 3.09 3.34 0.50 3.09
BKCT Bancorp Connecticut of CT* 7.86 7.86 1.33 14.75 9.07 1.20 13.34
BPLS Bank Plus Corp. of CA 3.63 3.20 -0.43 -12.42 -21.21 -0.51 -14.52
BNKU Bank United Corp. of TX 4.64 4.12 0.71 14.87 11.43 0.64 13.38
BWFC Bank West Fin. Corp. of MI 9.98 9.98 0.19 1.67 1.88 0.41 3.67
BANC BankAtlantic Bancorp of FL 5.96 4.59 0.42 6.97 8.10 0.52 8.71
BKUNA BankUnited Fin. Corp. of FL 4.44 3.67 -0.11 -2.39 -3.35 -0.09 -1.89
BFSB Bedford Bancshares, Inc. of VA 12.70 12.70 1.36 10.23 9.18 1.36 10.23
BFFC Big Foot Fin. Corp. of IL 16.29 16.29 0.35 2.14 2.75 0.35 2.14
BRBI Blue River Bancshares of IN 9.85 8.02 -0.07 -0.66 -1.56 -0.15 -1.41
BYFC Broadway Fin. Corp. of CA 7.93 7.93 0.28 3.29 9.31 0.76 8.86
BRKL Brookline Bncp MHC of MA(46.0)* 30.40 30.40 2.35 7.51 7.39 2.06 6.58
CBES CBES Bancorp, Inc. of MO 10.83 10.83 0.70 6.40 7.61 0.20 1.81
CITZ CFS Bancorp, Inc. of IN 13.73 13.73 0.94 5.84 7.78 0.91 5.67
CKFB CKF Bancorp of Danville KY 18.52 18.52 1.09 5.33 7.50 1.09 5.33
CNSB CNS Bancorp, Inc. of MO(8) 23.25 23.25 0.74 3.20 3.06 0.62 2.68
CNYF CNY Financial Corp of NY* 25.42 25.42 0.85 3.58 3.25 0.85 3.58
CAFI Camco Fin. Corp. of OH 7.98 7.56 0.89 9.97 10.66 0.64 7.15
CMRN Cameron Fin. Corp. of MO 16.45 16.45 0.88 4.84 7.74 0.87 4.74
CFFN Capitol Fincl MHC of KS (43.0) 16.00 16.00 0.62 3.75 4.40 1.04 6.31
CFNC Carolina Fincorp of NC(8) 13.31 13.31 0.78 5.81 4.84 0.67 4.98
CASB Cascade Financial Corp. of WA 5.85 5.85 0.80 12.34 6.92 0.71 11.06
CATB Catskill Fin. Corp. of NY* 17.48 17.48 1.29 6.43 7.42 1.30 6.49
CAVB Cavalry Bancorp of TN 23.05 23.05 1.31 5.12 2.99 0.90 3.54
CNIT Cenit Bancorp of Norfolk VA 7.84 7.32 0.95 11.97 7.07 0.86 10.82
CEBK Central Bancorp of MA* 10.27 9.47 0.80 7.70 7.42 0.66 6.40
CENB Century Bancorp, Inc. of NC 18.30 18.30 1.02 5.25 6.75 1.02 5.25
CVAL Chester Valley Bancorp of PA 7.03 7.03 1.03 13.05 7.66 0.99 12.59
CLAS Classic Bancshares, Inc. of KY 11.26 7.87 0.65 4.90 7.11 0.65 4.96
CBSA Coastal Bancorp of Houston TX 3.58 2.63 0.40 10.96 10.80 0.40 10.96
CFCP Coastal Fin. Corp. of SC 5.78 5.78 1.14 19.26 9.50 1.02 17.23
COHB Cohoes Bancorp of NY* 19.14 19.14 0.48 2.56 3.40 0.48 2.56
CFKY Columbia Financial of KY 26.57 26.57 0.84 2.82 2.85 0.84 2.82
CMSB Commonwealth Bancorp Inc of PA 7.74 5.98 0.73 8.84 8.03 0.42 5.02
CFFC Community Fin. Corp. of VA 11.46 11.42 0.91 7.00 6.70 0.25 1.95
CIBI Community Inv. Bancorp of OH 9.03 9.03 0.81 9.06 10.27 0.81 9.06
CMSV Community Svgs Bcshrs of FL 14.64 14.64 0.72 4.95 4.72 0.72 4.95
COOP Cooperative Bancshares of NC 7.61 7.61 0.66 8.47 8.70 0.64 8.20
CRZY Crazy Woman Creek Bncorp of WY 21.04 21.04 1.14 5.17 8.30 1.14 5.17
CRSB Crusader Holding Corp of PA 8.57 8.23 1.92 20.51 16.47 1.73 18.42
DCBI Delphos Citizens Bancorp of OH 19.86 19.86 1.40 6.60 6.12 1.40 6.60
DCOM Dime Community Bancorp of NY* 9.18 6.45 1.03 10.69 9.38 1.03 10.69
ESBF ESB Financial Corp of PA 5.17 4.55 0.58 9.68 9.74 0.55 9.16
EBSI Eagle Bancshares of Tucker GA 6.18 6.18 0.76 12.65 11.72 0.71 11.90
ESBK Elmira Svgs Bank (The) of NY* 6.03 5.62 0.65 10.63 9.33 0.66 10.84
EFBC Empire Federal Bancorp of MT 29.60 29.60 1.20 3.77 5.65 1.20 3.77
EQSB Equitable FSB of Wheaton MD 4.99 4.99 0.62 11.79 11.78 0.59 11.38
EVRT Evertrust Fin. Grp, Inc. of WA* 22.74 22.74 -0.91 -5.11 -5.97 0.45 2.55
FFDF FFD Financial Corp. of OH 13.84 13.84 0.75 5.04 5.36 0.58 3.89
<CAPTION>
Asset Quality Ratios Pricing Ratios
---------------------------- -------------------------------------------
Price/ Price/
NPAs Resvs/ Resvs/ Price/ Price/ Price/ Tang. Core
Financial Institution Assets NPAs Loans Earning Book Assets Book Earnings
--------------------- ------- ------- ------- ------- ------- ------- ------- --------
(%) (%) (%) (X) (%) (%) (%) (x)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ALLB Alliance Bank MHC of PA (18.7) 0.40 127.69 0.8 13.64 104.90 9.92 104.90 13.64
AHCI Ambanc Holding Co., Inc. of NY* 0.60 128.04 1.21 22.79 99.87 10.61 110.64 22.79
ASBI Ameriana Bancorp of IN 0.42 69.74 0.44 13.98 117.49 11.19 122.84 16.19
AMFH American Fin. Holdings of CT* NA NA NA 15.55 70.87 19.50 70.87 15.55
ABCW Anchor Bancorp Wisconsin of WI 0.23 379.62 1.08 20.55 167.41 13.46 167.41 18.07
ANDB Andover Bancorp, Inc. of MA* 0.22 354.03 1.04 10.30 144.59 12.61 144.59 10.23
ASFC Astoria Financial Corp. of NY 0.28 116.10 0.74 14.25 124.83 7.14 151.28 14.18
BCSB BCSB Bankcorp MHC of MD (38.6) 0.37 111.58 0.57 29.91 93.10 14.11 93.10 29.91
BKCT Bancorp Connecticut of CT* 0.36 280.36 1.79 11.03 176.89 13.91 176.89 12.20
BPLS Bank Plus Corp. of CA 2.44 97.78 3.02 NM 65.76 2.39 74.69 NM
BNKU Bank United Corp. of TX 0.67 76.06 0.66 8.75 124.38 5.77 139.92 9.72
BWFC Bank West Fin. Corp. of MI 0.71 35.60 0.35 NM 92.38 9.22 92.38 24.24
BANC BankAtlantic Bancorp of FL 0.85 120.92 1.71 12.35 87.13 5.20 113.30 9.88
BKUNA BankUnited Fin. Corp. of FL 0.69 42.73 0.37 NM 72.47 3.22 87.75 NM
BFSB Bedford Bancshares, Inc. of VA NA NA 0.54 10.89 113.52 14.42 113.52 10.89
BFFC Big Foot Fin. Corp. of IL 0.12 121.95 0.21 NM 80.92 13.18 80.92 NM
BRBI Blue River Bancshares of IN 0.88 55.82 0.75 NM 42.78 4.21 52.57 NM
BYFC Broadway Fin. Corp. of CA 0.46 179.24 1.12 10.74 34.72 2.75 34.72 3.98
BRKL Brookline Bncp MHC of MA(46.0)* 0.08 NA 2.13 13.53 102.07 31.03 102.07 15.44
CBES CBES Bancorp, Inc. of MO 0.45 129.99 0.68 13.15 82.73 8.96 82.73 NM
CITZ CFS Bancorp, Inc. of IN 0.76 48.55 0.70 12.86 83.84 11.51 83.84 13.23
CKFB CKF Bancorp of Danville KY 0.82 26.30 0.24 13.33 73.53 13.62 73.53 13.33
CNSB CNS Bancorp, Inc. of MO(8) NA NA 0.63 NM 105.06 24.42 105.06 NM
CNYF CNY Financial Corp of NY* 0.38 218.30 1.47 NM 99.55 25.30 99.55 NM
CAFI Camco Fin. Corp. of OH 1.00 23.63 0.27 9.38 91.53 7.30 96.60 13.08
CMRN Cameron Fin. Corp. of MO 0.30 201.37 0.70 12.92 64.69 10.64 64.69 13.19
CFFN Capitol Fincl MHC of KS (43.0) 0.09 72.86 0.10 22.73 84.75 13.56 84.75 13.51
CFNC Carolina Fincorp of NC(8) 0.46 97.46 0.58 20.67 118.76 15.80 118.76 24.12
CASB Cascade Financial Corp. of WA 0.13 561.51 0.90 14.45 172.83 10.12 172.83 16.13
CATB Catskill Fin. Corp. of NY* 0.16 384.74 1.37 13.48 96.11 16.80 96.11 13.36
CAVB Cavalry Bancorp of TN 0.11 892.07 1.39 NM 179.42 41.36 179.42 NM
CNIT Cenit Bancorp of Norfolk VA 0.16 370.42 0.83 14.15 166.42 13.05 178.33 15.65
CEBK Central Bancorp of MA* 0.01 NA 0.99 13.47 104.06 10.68 112.77 16.21
CENB Century Bancorp, Inc. of NC 0.39 154.30 0.72 14.83 81.00 14.82 81.00 14.83
CVAL Chester Valley Bancorp of PA 0.20 383.61 1.20 13.05 172.72 12.15 172.72 13.53
CLAS Classic Bancshares, Inc. of KY 0.60 124.15 1.03 14.06 71.93 8.10 103.02 13.89
CBSA Coastal Bancorp of Houston TX 0.95 51.02 0.81 9.26 103.61 3.71 141.36 9.26
CFCP Coastal Fin. Corp. of SC 0.21 421.09 1.39 10.53 196.40 11.36 196.40 11.76
COHB Cohoes Bancorp of NY* 0.80 80.11 0.78 29.41 69.64 13.33 69.64 29.41
CFKY Columbia Financial of KY 0.07 394.74 0.43 NM 114.24 30.35 114.24 NM
CMSB Commonwealth Bancorp Inc of PA 0.42 123.93 0.76 12.45 130.68 10.11 169.14 21.92
CFFC Community Fin. Corp. of VA 1.11 47.50 0.69 14.93 104.78 12.00 105.08 NM
CIBI Community Inv. Bancorp of OH NA NA 0.62 9.74 85.23 7.70 85.23 9.74
CMSV Community Svgs Bcshrs of FL 0.15 291.83 0.63 21.19 100.64 14.74 100.64 21.19
COOP Cooperative Bancshares of NC 0.42 80.30 0.40 11.49 99.63 7.58 99.63 11.88
CRZY Crazy Woman Creek Bncorp of WY 0.22 176.60 0.83 12.05 64.56 13.58 64.56 12.05
CRSB Crusader Holding Corp of PA 0.85 75.76 1.02 6.07 116.55 9.99 121.45 6.76
DCBI Delphos Citizens Bancorp of OH 0.30 35.00 0.12 16.35 109.32 21.72 109.32 16.35
DCOM Dime Community Bancorp of NY* 0.21 302.83 1.02 10.66 106.23 9.75 151.14 10.66
ESBF ESB Financial Corp of PA 0.60 77.44 1.25 10.27 111.43 5.76 126.79 10.85
EBSI Eagle Bancshares of Tucker GA 0.81 74.46 1.06 8.53 109.77 6.79 109.77 9.06
ESBK Elmira Svgs Bank (The) of NY* 0.42 186.25 1.00 10.71 112.44 6.78 120.51 10.51
EFBC Empire Federal Bancorp of MT 0.01 NA 0.38 17.69 69.78 20.66 69.78 17.69
EQSB Equitable FSB of Wheaton MD 0.22 NA NA 8.49 94.49 4.72 94.49 8.80
EVRT Evertrust Fin. Grp, Inc. of WA* 0.06 NA 1.73 NM 59.37 13.50 59.37 NM
FFDF FFD Financial Corp. of OH 0.06 375.68 0.31 18.65 95.17 13.18 95.17 24.16
<CAPTION>
Dividend Data(6)
----------------------------
Ind. Divi-
Div./ dend Payout
Financial Institution Share Yield Ratio(7)
--------------------- ------- ------- -------
($) (%) (%)
NASDAQ Listed OTC Companies (continued)
---------------------------------------
<S> <C> <C> <C>
ALLB Alliance Bank MHC of PA (18.7) 0.36 4.00 54.55
AHCI Ambanc Holding Co., Inc. of NY* 0.40 2.58 58.82
ASBI Ameriana Bancorp of IN 0.60 3.90 54.55
AMFH American Fin. Holdings of CT* 0.00 0.00 0.00
ABCW Anchor Bancorp Wisconsin of WI 0.26 1.73 35.62
ANDB Andover Bancorp, Inc. of MA* 0.96 3.38 34.78
ASFC Astoria Financial Corp. of NY 0.96 3.19 45.50
BCSB BCSB Bankcorp MHC of MD (38.6) 0.50 7.27 NM
BKCT Bancorp Connecticut of CT* 0.62 4.13 45.59
BPLS Bank Plus Corp. of CA 0.00 0.00 NM
BNKU Bank United Corp. of TX 0.74 2.56 22.42
BWFC Bank West Fin. Corp. of MI 0.24 3.00 NM
BANC BankAtlantic Bancorp of FL 0.08 1.62 20.00
BKUNA BankUnited Fin. Corp. of FL 0.00 0.00 NM
BFSB Bedford Bancshares, Inc. of VA 0.36 3.27 35.64
BFFC Big Foot Fin. Corp. of IL 0.20 1.62 58.82
BRBI Blue River Bancshares of IN 0.00 0.00 NM
BYFC Broadway Fin. Corp. of CA 0.20 4.05 43.48
BRKL Brookline Bncp MHC of MA(46.0)* 0.24 2.43 32.88
CBES CBES Bancorp, Inc. of MO 0.72 4.68 61.54
CITZ CFS Bancorp, Inc. of IN 0.36 3.94 50.70
CKFB CKF Bancorp of Danville KY 0.60 5.00 66.67
CNSB CNS Bancorp, Inc. of MO(8) 0.36 2.25 73.47
CNYF CNY Financial Corp of NY* 0.40 2.60 NM
CAFI Camco Fin. Corp. of OH 0.48 4.83 45.28
CMRN Cameron Fin. Corp. of MO 0.50 3.99 51.55
CFFN Capitol Fincl MHC of KS (43.0) 0.40 4.00 NM
CFNC Carolina Fincorp of NC(8) 0.24 2.37 48.98
CASB Cascade Financial Corp. of WA 0.00 0.00 0.00
CATB Catskill Fin. Corp. of NY* 0.44 3.02 40.74
CAVB Cavalry Bancorp of TN 0.20 0.88 29.41
CNIT Cenit Bancorp of Norfolk VA 0.60 3.39 48.00
CEBK Central Bancorp of MA* 0.40 1.93 25.97
CENB Century Bancorp, Inc. of NC 0.68 5.33 NM
CVAL Chester Valley Bancorp of PA 0.36 2.44 31.86
CLAS Classic Bancshares, Inc. of KY 0.32 2.84 40.00
CBSA Coastal Bancorp of Houston TX 0.32 1.83 16.93
CFCP Coastal Fin. Corp. of SC 0.27 2.25 23.68
COHB Cohoes Bancorp of NY* 0.24 2.40 70.59
CFKY Columbia Financial of KY 0.28 2.15 NM
CMSB Commonwealth Bancorp Inc of PA 0.36 2.19 27.27
CFFC Community Fin. Corp. of VA 0.32 2.98 44.44
CIBI Community Inv. Bancorp of OH 0.26 3.47 33.77
CMSV Community Svgs Bcshrs of FL 0.44 3.52 74.58
COOP Cooperative Bancshares of NC 0.00 0.00 0.00
CRZY Crazy Woman Creek Bncorp of WY 0.48 4.80 57.83
CRSB Crusader Holding Corp of PA 0.00 0.00 0.00
DCBI Delphos Citizens Bancorp of OH 0.28 1.65 26.92
DCOM Dime Community Bancorp of NY* 0.68 3.80 40.48
ESBF ESB Financial Corp of PA 0.36 3.13 32.14
EBSI Eagle Bancshares of Tucker GA 0.64 4.41 37.65
ESBK Elmira Svgs Bank (The) of NY* 0.64 2.84 30.48
EFBC Empire Federal Bancorp of MT 0.40 3.48 61.54
EQSB Equitable FSB of Wheaton MD 0.00 0.00 0.00
EVRT Evertrust Fin. Grp, Inc. of WA* 0.00 0.00 NM
FFDF FFD Financial Corp. of OH 0.34 3.20 59.65
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- ----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________ NPAs Resvs/ Resvs
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loan
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------ ------- ------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FFLC FFLC Bancorp of Leesburg FL 9.96 9.96 1.10 9.92 10.25 0.98 8.86 0.23 210.01 0.55
FFWC FFW Corporation of Wabash IN 8.48 7.88 1.00 11.14 11.77 0.77 8.59 0.49 152.63 1.06
FFYF FFY Financial Corp. of OH 10.07 10.07 1.21 10.66 9.47 1.16 10.20 0.32 126.44 0.58
FMCO FMS Financial Corp. of NJ 6.16 6.15 0.71 11.29 7.26 0.69 10.97 0.66 77.76 1.27
FFHH FSF Financial Corp. of MN 10.12 9.45 0.59 5.81 7.23 0.34 3.33 0.13 252.18 0.50
FDTR Federal Trust Corp of FL 6.74 6.74 0.42 5.90 6.72 0.32 4.43 0.90 71.60 0.71
FBCI Fidelity Bancorp of Chicago IL 7.01 7.01 0.74 9.50 10.46 0.74 9.50 0.06 227.41 0.15
FSBI Fidelity Bancorp, Inc. of PA 5.40 5.40 0.75 12.04 13.73 0.74 11.83 0.52 99.72 0.90
FFFL Fidelity Bcsh MHC of FL (48.0) 4.69 4.52 0.35 6.61 5.93 0.31 6.00 0.20 100.74 0.30
FFED Fidelity Fed. Bancorp of IN 4.72 4.72 0.21 4.76 8.00 0.29 6.75 2.71 56.12 2.29
FFOH Fidelity Financial of OH(8) 12.22 11.42 0.57 4.61 2.62 0.96 7.82 0.49 80.23 0.46
SBFL Fingr Lakes Fin.MHC OF NY(33.1 6.68 6.68 0.31 4.19 3.33 0.24 3.18 0.31 142.81 0.86
FBEI First Bancorp of Indiana of IN 29.12 29.12 0.64 2.20 3.81 0.64 2.20 0.14 183.43 0.52
FBSI First Bancshares, Inc. of MO 13.50 13.01 1.07 7.80 9.33 1.05 7.63 1.28 24.28 0.35
FBBC First Bell Bancorp of PA 7.10 7.10 1.00 11.80 9.77 1.00 11.80 0.06 199.33 0.17
FCAP First Capital, Inc. of IN 13.12 13.12 0.85 6.05 6.82 0.89 6.38 0.09 NA NA
FCME First Coastal Corp. of ME* 9.15 9.15 1.20 13.33 18.86 0.59 6.54 0.33 459.00 2.38
FCFN First Community Fin Corp of NC 21.06 21.06 0.08 0.36 0.54 0.70 3.08 0.60 116.19 1.11
FDEF First Defiance Fin.Corp. of OH 9.69 8.09 0.59 5.15 6.42 0.15 1.34 2.16 41.18 1.75
FESX First Essex Bancorp of MA* 6.82 5.16 0.92 12.64 10.76 0.87 11.84 0.32 266.07 1.44
FFES First Fed of E. Hartford CT 7.01 7.01 0.60 8.32 8.15 0.59 8.05 0.09 227.44 0.92
BDJI First Fed. Bancorp. of MN 9.88 9.88 0.60 5.89 8.64 0.64 6.32 0.44 95.03 0.96
FFBH First Fed. Bancshares of AR 11.85 11.85 1.00 7.84 9.14 0.98 7.64 0.81 14.22 0.17
FTFC First Fed. Capital Corp. of WI 6.75 6.09 1.19 17.40 8.59 0.94 13.77 0.11 365.47 0.54
FFKY First Fed. Fin. Corp. of KY 10.98 8.84 1.32 11.28 7.07 1.33 11.42 NA NA 0.52
FFBZ First Federal Bancorp of OH 8.41 8.41 0.71 8.80 6.16 0.69 8.61 0.54 160.02 1.01
FFSX First Federal Bankshares of IA 9.94 6.92 0.78 8.81 10.96 0.62 7.01 0.31 146.90 0.68
FFCH First Fin. Holdings Inc. of SC 6.08 6.08 0.99 15.64 9.06 0.94 14.89 0.62 112.99 0.83
FFHS First Franklin Corp. of OH 8.04 8.02 0.62 7.18 6.94 0.55 6.38 0.42 93.43 0.59
FGHC First Georgia Hold. Corp of GA 8.49 8.13 1.11 13.51 6.00 0.85 10.36 1.44 42.61 0.73
FFSL First Independence Corp. of KS 9.49 9.49 0.86 9.04 10.23 0.86 9.04 1.84 29.71 0.66
FISB First Indiana Corp. of IN 9.21 9.12 1.17 12.80 7.60 0.78 8.53 0.82 187.60 1.84
FKAN First Kansas Financial of KS 13.38 13.25 0.63 3.81 5.09 0.63 3.81 0.21 74.92 0.50
FKFS First Keystone Fin. Corp of PA 5.31 5.31 0.65 11.24 14.72 0.56 9.72 NA NA 0.84
FLKY First Lancaster Bncshrs of KY 25.60 25.60 0.55 2.21 2.61 0.55 2.21 3.07 27.81 0.95
CASH First Midwest Fin., Inc. of IA 7.78 6.97 0.55 6.38 10.50 0.51 5.89 0.47 129.86 1.01
FMSB First Mutual SB of Bellevue WA* 6.99 6.99 1.13 16.02 11.08 0.96 13.57 0.09 NA 1.51
FNFI First Niles Financial of OH 34.25 34.25 1.57 4.96 5.98 1.47 4.64 0.97 64.80 1.40
FNGB First Northern Cap. Corp of WI 9.59 9.59 0.98 9.52 8.43 0.94 9.18 0.10 470.28 0.52
FPFC First Place Fin. Corp of OH 19.10 19.10 0.43 2.08 2.59 0.42 2.01 NA NA 0.75
FWWB First Savings Bancorp of WA 10.20 8.00 1.01 9.16 9.50 0.91 8.20 0.49 157.68 1.10
FSFF First SecurityFed Fin of IL 22.86 22.80 1.47 6.04 8.46 1.47 6.04 0.26 241.01 0.94
FSLA First Sentinal Bancorp of NJ 13.76 13.39 1.23 7.64 6.71 1.18 7.36 0.20 276.05 1.10
SOPN First Svgs Bancorp of NC(8) 19.63 19.63 1.73 7.86 7.89 1.73 7.86 0.11 164.64 0.28
FBNW FirstBank NW Corp of ID 11.93 11.93 0.90 6.83 8.23 0.64 4.89 0.42 164.40 0.87
FFDB FirstFed Bancorp, Inc. of AL 10.33 9.65 0.74 7.37 6.27 0.74 7.37 0.92 62.83 0.93
FSPT FirstSpartan Fin. Corp. of SC 12.42 12.42 0.87 4.95 6.94 1.04 5.95 0.36 153.33 0.66
FLGS Flagstar Bancorp, Inc of MI 5.00 4.95 1.24 24.92 21.05 1.24 24.92 1.66 34.17 1.88
FFBK FloridaFirst MHC of FL (47.0) 13.15 13.15 0.71 6.92 6.56 0.66 6.45 0.15 417.78 0.75
FFIC Flushing Fin. Corp. of NY* 9.95 9.55 1.05 9.56 7.78 1.04 9.48 0.47 123.02 0.82
FTSB Fort Thomas Fin. Corp. of KY 13.35 13.35 0.89 6.67 4.13 0.89 6.67 2.46 27.15 0.75
FKKY Frankfort First Bancorp of KY 14.95 14.95 1.18 7.52 7.27 1.18 7.52 0.21 33.90 0.07
GUPB GFSB Bancorp, Inc of Gallup NM 7.97 7.97 0.82 9.04 8.43 0.79 8.74 0.37 79.55 0.46
GSLA GS Financial Corp. of LA 27.85 27.85 0.88 2.90 5.10 0.88 2.90 0.06 469.66 0.61
GOSB GSB Financial Corp. of NY* 16.97 16.97 0.89 4.38 5.25 0.78 3.84 NA NA 0.24
GBNK Gaston Fed Bncp MHC of NC(46.3 16.73 16.73 0.96 5.24 3.96 0.86 4.70 0.15 427.76 0.89
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FFLC FFLC Bancorp of Leesburg FL 9.75 95.37 9.50 95.37 10.92 0.44 3.01 29.33
FFWC FFW Corporation of Wabash IN 8.50 97.89 8.30 105.35 11.02 0.48 3.69 31.37
FFYF FFY Financial Corp. of OH 10.56 127.87 12.87 127.87 11.04 0.50 4.08 43.10
FMCO FMS Financial Corp. of NJ 13.77 150.08 9.24 150.32 14.18 0.12 1.26 17.39
FFHH FSF Financial Corp. of MN 13.83 81.63 8.26 87.43 24.14 0.50 4.06 56.18
FDTR Federal Trust Corp of FL 14.88 84.40 5.68 84.40 19.83 0.00 0.00 0.00
FBCI Fidelity Bancorp of Chicago IL 9.56 93.96 6.59 94.01 9.56 0.44 2.46 23.53
FSBI Fidelity Bancorp, Inc. of PA 7.29 94.65 5.11 94.65 7.41 0.40 3.14 22.86
FFFL Fidelity Bcsh MHC of FL (48.0) 16.86 115.91 5.43 120.03 18.59 1.00 6.90 NM
FFED Fidelity Fed. Bancorp of IN 12.50 60.73 2.87 60.73 8.82 0.00 0.00 0.00
FFOH Fidelity Financial of OH(8) NM 152.65 18.66 163.42 22.52 0.36 2.19 NM
SBFL Fingr Lakes Fin.MHC OF NY(33.1 30.00 133.21 8.90 133.21 NM 0.24 3.20 NM
FBEI First Bancorp of Indiana of IN 26.26 58.16 16.94 58.16 26.26 0.00 0.00 0.00
FBSI First Bancshares, Inc. of MO 10.72 83.22 11.23 86.32 10.96 0.16 1.60 17.20
FBBC First Bell Bancorp of PA 10.23 142.26 10.10 142.26 10.23 0.40 2.62 26.85
FCAP First Capital, Inc. of IN 14.67 82.40 10.81 82.40 13.92 0.40 3.64 53.33
FCME First Coastal Corp. of ME* 5.30 68.25 6.25 68.25 10.80 0.00 0.00 0.00
FCFN First Community Fin Corp of NC NM 66.00 13.90 66.00 21.47 0.00 0.00 0.00
FDEF First Defiance Fin.Corp. of OH 15.58 83.20 8.06 99.63 NM 0.40 3.72 57.97
FESX First Essex Bancorp of MA* 9.30 121.51 8.29 160.72 9.93 0.72 4.90 45.57
FFES First Fed of E. Hartford CT 12.27 106.21 7.44 106.21 12.68 0.72 2.72 33.33
BDJI First Fed. Bancorp. of MN 11.57 68.46 6.76 68.46 10.78 0.00 0.00 0.00
FFBH First Fed. Bancshares of AR 10.94 87.25 10.34 87.25 11.24 0.32 1.92 21.05
FTFC First Fed. Capital Corp. of WI 11.63 192.24 12.97 213.06 14.70 0.36 2.69 31.30
FFKY First Fed. Fin. Corp. of KY 14.14 163.99 18.00 203.51 13.97 0.72 3.18 45.00
FFBZ First Federal Bancorp of OH 16.23 138.22 11.62 138.22 16.59 0.16 2.10 34.04
FFSX First Federal Bankshares of IA 9.12 63.09 6.27 90.58 11.46 0.30 3.36 30.61
FFCH First Fin. Holdings Inc. of SC 11.03 169.67 10.32 169.67 11.59 0.56 3.50 38.62
FFHS First Franklin Corp. of OH 14.41 107.28 8.63 107.55 16.21 0.30 2.31 33.33
FGHC First Georgia Hold. Corp of GA 16.67 211.86 17.99 221.24 21.74 0.08 1.60 26.67
FFSL First Independence Corp. of KS 9.78 85.58 8.12 85.58 9.78 0.35 3.31 32.41
FISB First Indiana Corp. of IN 13.16 162.81 14.99 164.35 19.74 0.52 2.31 30.41
FKAN First Kansas Financial of KS 19.64 79.31 10.61 80.12 19.64 0.20 1.82 35.71
FKFS First Keystone Fin. Corp of PA 6.79 80.68 4.28 80.68 7.85 0.24 2.80 19.05
FLKY First Lancaster Bncshrs of KY NM 85.51 21.89 85.51 NM 0.60 4.75 NM
CASH First Midwest Fin., Inc. of IA 9.52 63.05 4.90 70.32 10.31 0.52 5.20 49.52
FMSB First Mutual SB of Bellevue WA* 9.02 136.80 9.56 136.80 10.66 0.20 1.79 16.13
FNFI First Niles Financial of OH 16.73 75.68 25.92 75.68 17.89 0.40 3.11 51.95
FNGB First Northern Cap. Corp of WI 11.87 111.90 10.73 111.90 12.31 0.40 4.01 47.62
FPFC First Place Fin. Corp of OH NM 82.77 15.81 82.77 NM 0.30 2.68 NM
FWWB First Savings Bancorp of WA 10.53 95.32 9.72 121.45 11.77 0.48 3.19 33.57
FSFF First SecurityFed Fin of IL 11.83 72.10 16.48 72.29 11.83 0.40 3.68 43.48
FSLA First Sentinal Bancorp of NJ 14.91 122.15 16.81 125.59 15.48 0.24 2.98 44.44
SOPN First Svgs Bancorp of NC(8) 12.67 104.42 20.49 104.42 12.67 1.04 5.44 68.87
FBNW FirstBank NW Corp of ID 12.16 86.04 10.26 86.04 16.99 0.36 2.72 33.03
FFDB FirstFed Bancorp, Inc. of AL 15.95 115.19 11.90 123.33 15.95 0.28 3.03 48.28
FSPT FirstSpartan Fin. Corp. of SC 14.41 99.83 12.40 99.83 11.97 1.00 5.64 NM
FLGS Flagstar Bancorp, Inc of MI 4.75 108.11 5.41 109.37 4.75 0.40 2.66 12.62
FFBK FloridaFirst MHC of FL (47.0) 15.25 84.99 11.18 84.99 16.36 0.16 1.78 27.12
FFIC Flushing Fin. Corp. of NY* 12.85 130.55 12.98 135.94 12.96 0.32 2.02 26.02
FTSB Fort Thomas Fin. Corp. of KY 24.19 164.84 22.00 164.84 24.19 0.25 1.67 40.32
FKKY Frankfort First Bancorp of KY 13.75 106.40 15.91 106.40 13.75 0.96 6.35 NM
GUPB GFSB Bancorp, Inc of Gallup NM 11.86 110.50 8.81 110.50 12.28 0.40 2.86 33.90
GSLA GS Financial Corp. of LA 19.61 60.39 16.82 60.39 19.61 0.36 3.60 70.59
GOSB GSB Financial Corp. of NY* 19.05 86.45 14.68 86.45 21.72 0.20 1.62 30.77
GBNK Gaston Fed Bncp MHC of NC(46.3 25.27 136.19 22.78 136.19 28.14 0.22 1.78 44.90
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios
-------------------------------------------------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ---------------------- --------------
Financial Institutions Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5)
- ---------------------- ------ ------ ------ ------ ------ ------ ------
(%) (%) (%) (%) (%) (%) (%)
<S> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- --------------------------------------
GCFC Grand Central Fin Corp of OH 21.25 21.25 0.54 2.63 2.76 0.49 2.37
GTPS Great American Bancorp of IL 14.46 14.46 0.38 2.55 3.54 0.38 2.55
PEDE Great Pee Dee Bancorp of SC 38.36 38.36 1.22 2.88 3.67 1.19 2.81
GAFC Greater Atlant. Fin Corp of VA 12.57 12.57 -0.36 -2.58 -4.54 -1.12 -8.10
GCBC Green Co. Bcrp MHC of NY (44.5 15.09 15.09 0.82 5.30 6.57 0.82 5.30
GFED Guaranty Fed Bancshares of MO 19.56 19.56 1.16 5.40 6.34 1.14 5.32
HFFC HF Financial Corp. of SD 7.26 6.52 0.19 2.25 2.49 0.12 1.39
HMNF HMN Financial, Inc. of MN 9.56 8.80 0.99 10.13 11.12 0.74 7.58
HALL Hallmark Capital Corp. of WI 6.45 6.45 0.66 9.20 12.37 0.59 8.33
HRBF Harbor Federal Bancorp of MD 9.43 9.43 0.75 6.59 8.23 0.75 6.59
HARB Harbor Florida Bancshrs of FL 16.12 15.97 1.50 8.59 6.08 1.50 8.59
HFSA Hardin Bancorp of Hardin MO 8.94 8.94 0.93 9.92 11.62 0.75 8.00
HARL Harleysville SB of PA 6.30 6.30 0.81 12.75 12.03 0.80 12.66
HFGI Harrington Fin. Group of IN 3.51 3.51 -0.24 -6.77 -5.61 -0.20 -5.41
HARS Harris Fin. MHC of PA (24.1) 6.73 6.05 0.70 9.48 6.63 0.62 8.41
HFFB Harrodsburg 1st Fin Bcrp of KY 23.74 23.74 1.37 5.53 6.78 1.37 5.53
HHFC Harvest Home Fin. Corp. of OH(8) 9.80 9.80 0.53 5.19 3.33 0.53 5.19
HAVN Haven Bancorp of Woodhaven NY 3.77 3.60 0.44 9.71 8.36 0.38 8.41
HTHR Hawthorne Fin. Corp. of CA 5.77 5.77 0.85 14.88 19.04 0.88 15.56
HMLK Hemlock Fed. Fin. Corp. of IL 12.05 12.05 0.78 5.94 6.91 0.79 6.01
HBSC Heritage Bancorp, Inc of SC 23.78 23.78 0.78 2.72 3.14 1.19 4.15
HFWA Heritage Financial Corp of WA 20.80 19.13 0.94 4.28 4.46 0.68 3.07
HCBC High Country Bancorp of CO 15.14 15.14 0.77 4.73 5.23 0.72 4.45
HBNK Highland Bancorp of CA 7.25 7.25 1.53 21.20 12.39 1.64 22.72
HIFS Hingham Inst. for Sav. of MA* 8.81 8.81 1.20 13.23 11.34 1.19 13.07
HBFW Home Bancorp of Fort Wayne IN 9.49 9.49 0.78 7.38 7.33 0.76 7.23
HCFC Home City Fin. Corp. of OH 11.23 11.23 1.09 8.89 9.12 1.09 8.89
HOMF Home Fed Bancorp of Seymour IN 9.12 8.91 1.39 14.84 9.17 1.15 12.31
HWEN Home Financial Bancorp of IN 12.34 12.34 0.31 2.21 2.64 0.31 2.21
HLFC Home Loan Financial Corp of OH 18.88 18.88 1.22 4.49 7.61 1.22 4.49
HPBC Home Port Bancorp, Inc. of MA* 8.35 8.35 1.65 19.20 9.87 1.59 18.53
HSTD Homestead Bancorp, Inc. of LA 13.12 13.12 0.55 3.50 7.20 0.51 3.27
HFBC HopFed Bancorp of KY 27.65 27.65 2.24 8.12 7.50 0.28 1.01
HZFS Horizon Fin'l. Services of IA 9.67 9.67 -0.14 -1.54 -2.03 0.59 6.37
HRZB Horizon Financial Corp. of WA* 14.31 14.21 1.38 9.30 10.26 1.39 9.40
HCBK Hudson Cty Bcp MHC of NJ(47.0)* 17.65 17.65 1.26 8.61 6.67 1.26 8.61
HRBT Hudson River Bancorp Inc of NY 19.43 18.29 0.91 3.73 4.75 0.91 3.73
ITLA ITLA Capital Corp of CA* 11.09 11.07 1.53 14.28 16.83 1.53 14.21
ICBC Independence Comm Bnk Cp of NY 13.35 10.96 0.88 5.69 5.97 0.90 5.85
IFSB Independence FSB of DC 8.69 8.09 0.48 5.57 8.34 0.18 2.07
INBI Industrial Bancorp of OH 14.58 14.58 1.40 9.13 8.64 1.40 9.13
ISFC Innes Street Financial of NC 18.07 18.07 0.80 6.45 5.51 0.77 6.27
IWBK Interwest Bancorp of WA 6.42 5.95 1.11 16.13 10.25 0.93 13.53
IPSW Ipswich Bancshares, Inc. of MA* 6.04 6.04 1.14 20.07 11.19 1.23 21.75
JXVL Jacksonville Bancorp of TX 12.21 12.21 1.44 10.68 12.47 1.44 10.68
IGAF Jade Financial Corp. of PA 13.82 13.82 0.43 3.12 5.21 0.44 3.19
JXSB Jcksnville SB,MHC of IL (45.6) 11.25 11.25 0.81 7.35 8.11 0.63 5.69
JSBA Jefferson Svgs Bancorp of MO 7.92 6.61 0.65 7.60 8.73 0.61 7.20
KSBK KSB Bancorp of Kingfield ME(8)* 7.63 6.98 1.03 13.01 7.72 1.08 13.67
KFBI Klamath First Bancorp of OR 10.52 9.58 0.89 7.42 9.72 0.89 7.49
LSBI LSB Fin. Corp. of Lafayette IN 7.74 7.74 0.74 9.65 10.05 0.68 8.83
LARK Landmark Bancshares, Inc of KS 9.07 9.07 0.93 9.47 12.06 0.66 6.72
LARL Laurel Capital Group of PA 10.32 10.32 1.40 13.05 11.04 1.34 12.43
LSBX Lawrence Savings Bank of MA* 12.08 12.08 1.25 9.74 13.65 1.28 10.02
LFED Leeds Fed Bksr MHC of MD(33.2) 14.61 14.61 1.08 7.05 7.20 1.08 7.05
LXMO Lexington B&L Fin. Corp. of MO 14.69 13.80 0.61 3.94 4.83 0.60 3.87
</TABLE>
<TABLE>
<CAPTION>
Asset Quality Ratios Pricing Ratios
--------------------------- ----------------------------------------------
Price/ Price/
NPAs Resvs/ Resvs/ Price/ Price/ Price/ Tang. Core
Financial Institution Assets NPAs Loans Earning Book Assets Book Earnings
- -------------------- ------ ------- ----- ------- ---- ------ ---- --------
(%) (%) (%) (X) (%) (%) (%) (x)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- --------------------------------------
GCFC Grand Central Fin Corp of OH 0.04 625.00 0.55 NM 89.56 19.03 89.56 NM
GTPS Great American Bancorp of IL 1.00 88.43 1.05 28.26 73.95 10.69 73.95 28.26
PEDE Great Pee Dee Bancorp of SC 0.32 187.34 0.67 27.27 82.93 31.81 82.93 27.91
GAFC Greater Atlant. Fin Corp of VA 0.11 280.95 0.81 NM 55.72 7.00 55.72 NM
GCBC Green Co. Bcrp MHC of NY (44.5 0.41 131.48 0.87 15.22 81.74 12.33 81.74 15.22
GFED Guaranty Fed Bancshares of MO 0.28 275.17 0.87 15.78 88.59 17.33 88.59 16.03
HFFC HF Financial Corp. of SD 0.41 370.67 1.95 NM 96.27 6.99 107.19 NM
HMNF HMN Financial, Inc. of MN 0.07 644.02 0.70 8.99 93.77 8.97 101.96 12.02
HALL Hallmark Capital Corp. of WI 0.64 82.32 0.83 8.09 76.07 4.90 76.07 8.93
HRBF Harbor Federal Bancorp of MD 0.09 192.83 0.28 12.16 86.44 8.15 86.44 12.16
HARB Harbor Florida Bancshrs of FL 0.24 346.23 1.10 16.45 148.46 23.94 149.88 16.45
HFSA Hardin Bancorp of Hardin MO 0.19 116.67 0.41 8.61 88.56 7.92 88.56 10.68
HARL Harleysville SB of PA 0.07 682.27 0.80 8.31 100.39 6.32 100.39 8.36
HFGI Harrington Fin. Group of IN 0.16 124.97 0.37 NM 130.59 4.59 130.59 NM
HARS Harris Fin. MHC of PA (24.1) 0.58 75.38 0.91 15.09 150.94 10.16 168.07 17.02
HFFB Harrodsburg 1st Fin Bcrp of KY 0.25 131.67 0.41 14.75 85.20 20.23 85.20 14.75
HHFC Harvest Home Fin. Corp. of OH(8) 0.08 172.15 0.27 30.00 160.28 15.71 160.28 30.00
HAVN Haven Bancorp of Woodhaven NY 0.40 135.10 0.91 11.96 122.80 4.63 128.73 13.81
HTHR Hawthorne Fin. Corp. of CA 2.87 49.47 1.56 5.25 72.21 4.17 72.21 5.02
HMLK Hemlock Fed. Fin. Corp. of IL 0.05 729.36 0.69 14.47 87.58 10.55 87.58 14.32
HBSC Heritage Bancorp, Inc of SC NA NA 0.54 NM 100.18 23.82 100.18 20.84
HFWA Heritage Financial Corp of WA 0.23 388.25 1.11 22.44 93.38 19.42 101.51 NM
HCBC High Country Bancorp of CO 0.35 227.01 0.91 19.12 91.94 13.92 91.94 20.31
HBNK Highland Bancorp of CA 0.89 201.91 2.16 8.07 166.20 12.04 166.20 7.53
HIFS Hingham Inst. for Sav. of MA* 0.21 324.07 0.83 8.82 112.17 9.89 112.17 8.93
HBFW Home Bancorp of Fort Wayne IN 0.07 493.38 0.39 13.64 106.32 10.10 106.32 13.93
HCFC Home City Fin. Corp. of OH 0.25 197.98 0.54 10.96 95.93 10.77 95.93 10.96
HOMF Home Fed Bancorp of Seymour IN 0.73 81.26 0.74 10.90 164.40 14.99 168.25 13.14
HWEN Home Financial Bancorp of IN 0.30 200.58 0.86 NM 84.70 10.45 84.70 NM
HLFC Home Loan Financial Corp of OH 0.10 329.91 0.46 13.13 79.60 15.02 79.60 13.13
HPBC Home Port Bancorp, Inc. of MA* NA NA 1.54 10.14 182.42 15.24 182.42 10.50
HSTD Homestead Bancorp, Inc. of LA 0.30 97.06 0.43 13.89 53.79 7.05 53.79 14.88
HFBC HopFed Bancorp of KY 0.25 49.01 0.24 13.33 108.47 29.99 108.47 NM
HZFS Horizon Fin'l. Services of IA 1.62 26.71 0.64 NM 74.06 7.16 74.06 11.86
HRZB Horizon Financial Corp. of WA* 0.07 900.00 0.81 9.75 85.38 12.21 85.98 9.65
HCBK Hudson Cty Bcp MHC of NJ(47.0)* 0.17 140.32 0.47 15.00 105.72 18.66 105.72 15.00
HRBT Hudson River Bancorp Inc of NY 1.55 107.95 2.35 21.04 82.61 16.05 87.74 21.04
ITLA ITLA Capital Corp of CA* 1.08 164.55 1.95 5.94 79.62 8.83 79.77 5.97
ICBC Independence Comm Bnk Cp of NY 0.44 219.86 1.37 16.75 99.10 13.23 120.72 16.30
IFSB Independence FSB of DC NA NA 0.84 11.99 66.31 5.76 71.22 NM
INBI Industrial Bancorp of OH 0.52 103.18 0.61 11.57 112.81 16.45 112.81 11.57
ISFC Innes Street Financial of NC 0.23 257.68 0.78 18.14 79.73 14.41 79.73 18.66
IWBK Interwest Bancorp of WA 0.56 97.68 0.90 9.76 163.96 10.53 176.84 11.63
IPSW Ipswich Bancshares, Inc. of MA* 0.30 224.85 0.95 8.93 163.29 9.86 163.29 8.24
JXVL Jacksonville Bancorp of TX 0.52 79.87 0.56 8.02 85.98 10.49 85.98 8.02
IGAF Jade Financial Corp. of PA 0.09 722.22 1.10 19.18 59.77 8.26 59.77 18.76
JXSB Jcksnville SB,MHC of IL (45.6) 1.35 34.38 0.56 12.32 88.38 9.94 88.38 15.91
JSBA Jefferson Svgs Bancorp of MO 0.70 60.06 0.53 11.45 86.83 6.88 104.02 12.09
KSBK KSB Bancorp of Kingfield ME(8)* 1.43 69.85 1.30 12.95 160.57 12.25 175.61 12.33
KFBI Klamath First Bancorp of OR 0.46 51.64 0.33 10.29 86.15 9.06 94.61 10.21
LSBI LSB Fin. Corp. of Lafayette IN 1.25 53.44 0.75 9.95 92.43 7.15 92.43 10.87
LARK Landmark Bancshares, Inc of KS 0.52 104.35 0.74 8.29 81.97 7.43 81.97 11.68
LARL Laurel Capital Group of PA 0.39 205.30 1.22 9.06 120.32 12.42 120.32 9.51
LSBX Lawrence Savings Bank of MA* 0.13 636.42 1.76 7.32 69.34 8.38 69.34 7.12
LFED Leeds Fed Bksr MHC of MD(33.2) 0.76 29.51 0.34 13.89 99.40 14.53 99.40 13.89
LXMO Lexington B&L Fin. Corp. of MO 0.61 91.17 0.94 20.70 80.65 11.85 85.86 21.05
</TABLE>
<TABLE>
<CAPTION>
Dividend Data(6)
-----------------------
Ind. Divi-
Div./ dend Payout
Financial Institution Share Yield Ratio(7)
- --------------------- ------- ------- -------
($) (%) (%)
<S> <C> <C> <C>
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
GCFC Grand Central Fin Corp of OH 0.20 1.38 50.00
GTPS Great American Bancorp of IL 0.44 3.38 NM
PEDE Great Pee Dee Bancorp of SC 0.40 3.33 NM
GAFC Greater Atlant. Fin Corp of VA 0.00 0.00 NM
GCBC Green Co. Bcrp MHC of NY (44.5 0.00 0.00 0.00
GFED Guaranty Fed Bancshares of MO 0.40 4.02 63.49
HFFC HF Financial Corp. of SD 0.40 3.44 NM
HMNF HMN Financial, Inc. of MN 0.32 2.56 23.02
HALL Hallmark Capital Corp. of WI 0.20 2.13 17.24
HRBF Harbor Federal Bancorp of MD 0.52 3.96 48.15
HARB Harbor Florida Bancshrs of FL 0.30 2.40 39.47
HFSA Hardin Bancorp of Hardin MO 0.80 5.47 47.06
HARL Harleysville SB of PA 0.44 3.42 28.39
HFGI Harrington Fin. Group of IN 0.12 1.68 NM
HARS Harris Fin. MHC of PA (24.1) 0.24 3.00 45.28
HFFB Harrodsburg 1st Fin Bcrp of KY 0.60 4.57 67.42
HHFC Harvest Home Fin. Corp. of OH(8) 0.44 2.44 73.33
HAVN Haven Bancorp of Woodhaven NY 0.30 1.97 23.62
HTHR Hawthorne Fin. Corp. of CA 0.00 0.00 0.00
HMLK Hemlock Fed. Fin. Corp. of IL 0.40 2.91 42.11
HBSC Heritage Bancorp, Inc of SC 0.30 1.78 56.60
HFWA Heritage Financial Corp of WA 0.28 3.20 71.79
HCBC High Country Bancorp of CO 0.40 3.08 58.82
HBNK Highland Bancorp of CA 0.25 1.39 11.21
HIFS Hingham Inst. for Sav. of MA* 0.48 3.34 29.45
HBFW Home Bancorp of Fort Wayne IN 0.40 2.05 27.97
HCFC Home City Fin. Corp. of OH 0.40 3.20 35.09
HOMF Home Fed Bancorp of Seymour IN 0.55 2.39 26.07
HWEN Home Financial Bancorp of IN 0.12 1.76 66.67
HLFC Home Loan Financial Corp of OH 0.26 3.30 43.33
HPBC Home Port Bancorp, Inc. of MA* 1.00 3.81 38.61
HSTD Homestead Bancorp, Inc. of LA 0.22 3.52 48.89
HFBC HopFed Bancorp of KY 0.30 1.88 25.00
HZFS Horizon Fin'l. Services of IA 0.18 2.62 NM
HRZB Horizon Financial Corp. of WA* 0.48 4.92 48.00
HCBK Hudson Cty Bcp MHC of NJ(47.0)* 0.20 1.48 22.22
HRBT Hudson River Bancorp Inc of NY 0.12 1.16 24.49
ITLA ITLA Capital Corp of CA* 0.00 0.00 0.00
ICBC Independence Comm Bnk Cp of NY 0.24 1.99 33.33
IFSB Independence FSB of DC 0.26 2.24 26.80
INBI Industrial Bancorp of OH 0.68 4.86 56.20
ISFC Innes Street Financial of NC 0.20 1.53 27.78
IWBK Interwest Bancorp of WA 0.56 3.19 31.11
IPSW Ipswich Bancshares, Inc. of MA* 0.20 1.88 16.81
JXVL Jacksonville Bancorp of TX 0.50 3.76 30.12
IGAF Jade Financial Corp. of PA 0.00 0.00 0.00
JXSB Jcksnville SB,MHC of IL (45.6) 0.30 3.43 42.25
JSBA Jefferson Svgs Bancorp of MO 0.28 2.57 29.47
KSBK KSB Bancorp of Kingfield ME(8)* 0.16 0.89 11.51
KFBI Klamath First Bancorp of OR 0.50 4.19 43.10
LSBI LSB Fin. Corp. of Lafayette IN 0.32 2.47 24.62
LARK Landmark Bancshares, Inc of KS 0.60 3.75 31.09
LARL Laurel Capital Group of PA 0.64 4.74 42.95
LSBX Lawrence Savings Bank of MA* 0.20 2.60 19.05
LFED Leeds Fed Bksr MHC of MD(33.2) 0.56 5.60 NM
LXMO Lexington B&L Fin. Corp. of MO 0.30 2.38 49.18
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- ----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________ NPAs Resvs/ Resvs
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loan
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LIBB Liberty Bancorp MHC of NJ(43.0 11.30 11.30 0.50 4.10 6.11 0.50 4.10 0.22 125.48 0.40
LFCO Life Financial Corp of CA(8) 9.63 9.63 -0.67 -5.91 -11.86 -0.50 -4.46 2.14 27.44 3.33
LNCB Lincoln Bancorp of IN 22.69 22.69 0.77 2.96 4.80 0.77 2.96 0.38 110.98 0.75
LOGN Logansport Fin. Corp. of IN 14.68 14.68 1.15 7.11 9.67 1.15 7.11 0.41 85.81 0.46
MAFB MAF Bancorp, Inc. of IL 7.92 6.51 1.15 14.32 8.91 1.11 13.80 0.48 79.26 0.46
MECH MECH Financial Inc of CT(8)* 8.37 8.31 1.18 13.46 7.56 1.23 13.95 0.28 365.17 1.55
MFBC MFB Corp. of Mishawaka IN 9.00 9.00 0.66 7.05 8.67 0.61 6.50 0.06 323.86 0.24
MSBF MSB Financial, Inc of MI 15.40 15.40 1.21 7.63 9.53 1.03 6.50 0.55 99.79 0.61
MARN Marion Capital Holdings of IN 16.59 16.24 1.12 6.54 9.99 1.01 5.89 1.58 70.35 1.29
MRKF Market Fin. Corp. of OH 26.29 26.29 1.25 4.65 6.11 0.71 2.62 0.21 43.70 0.15
MASB MassBank Corp. of Reading MA* 11.00 10.86 1.20 10.49 10.89 0.89 7.83 0.09 295.52 0.76
MTXC Matrix Bancorp, Inc of CO 5.42 5.42 0.95 18.30 11.24 0.77 14.82 1.80 27.16 4.22
MFLR Mayflower Co-Op. Bank of MA* 7.35 7.25 1.04 12.41 9.13 0.97 11.56 0.29 261.62 1.46
MDBK Medford Bancorp, Inc. of MA* 7.68 7.35 1.08 13.08 9.08 0.96 11.70 0.26 214.44 1.10
MBFC MegaBank Financial Corp of CO(8) 11.11 10.22 2.08 19.54 7.56 2.02 18.97 0.70 162.67 1.34
MWBX MetroWest Bank of MA* 7.22 7.22 1.11 15.19 8.80 1.11 15.19 0.57 275.71 2.23
METF Metropolitan Fin. Corp. of OH 2.92 2.76 0.40 13.08 13.68 0.30 9.58 1.18 50.31 0.77
MCBN Mid-Coast Bancorp of ME 7.27 7.27 0.53 7.15 7.32 0.37 4.91 0.32 185.06 0.76
MFFC Milton Fed. Fin. Corp. of OH 9.75 9.75 0.64 6.25 6.33 0.62 6.00 0.25 119.34 0.39
MBBC Monterey Bay Bancorp of CA 9.29 8.62 0.71 7.57 9.08 0.59 6.25 0.47 154.76 0.93
MONT Montgomery Fin. Corp. of IN 13.90 13.90 0.73 4.63 8.12 0.73 4.63 NA NA 0.20
MYST Mystic Financial of MA* 14.73 14.73 0.74 4.54 5.79 0.65 3.97 0.05 NA 0.83
NASB NASB Financial, Inc. of MO 9.88 9.68 1.61 16.34 11.91 1.01 10.27 1.73 42.73 0.97
NHTB NH Thrift Bancshares of NH 7.63 6.77 0.99 11.99 12.73 0.91 10.91 0.40 202.84 1.09
NSLB NS&L Bancorp, Inc of Neosho MO 15.87 15.74 0.75 4.58 6.29 0.70 4.23 0.15 56.57 0.15
NMSB Newmil Bancorp, Inc. of CT* 9.92 9.92 0.91 9.48 6.80 0.93 9.70 0.74 199.16 2.29
NBCP Niagara Bancorp MHC of NY(43.9* 14.02 13.20 1.15 7.23 6.54 1.13 7.12 0.24 236.49 1.01
NBSI North Bancshares of Chicago IL 8.67 8.67 0.46 4.70 4.57 0.44 4.51 NA NA 0.26
FFFD North Central Bancshares of IA 10.97 9.29 1.26 9.39 11.52 1.25 9.29 0.23 330.49 0.97
NEIB Northeast Indiana Bncrp of IN 10.48 10.48 1.17 10.41 11.41 1.17 10.41 0.55 116.39 0.78
NWSB Northwest Bcrp MHC of PA (27.7 7.05 5.30 0.70 9.07 5.77 0.73 9.48 0.48 104.56 0.69
NWEQ Northwest Equity Corp. of WI(8) 13.51 13.51 1.14 8.96 6.02 1.05 8.22 0.15 243.17 0.44
NTMG Nutmeg FS&LA of CT 7.15 7.15 0.85 12.79 8.19 0.40 6.01 0.80 57.53 0.54
OCFC OceanFirst Fin. Corp of NJ 11.06 11.00 0.98 8.02 6.77 0.98 8.09 0.28 181.05 0.79
ONFC Oneida Fincl MHC of NY (44.5) 14.80 14.80 0.60 3.66 4.29 0.48 2.93 0.30 185.92 1.07
OTFC Oregon Trail Fin. Corp. of OR 15.99 15.99 0.94 4.98 7.70 0.94 4.98 0.11 358.64 0.64
OFCP Ottawa Financial Corp. of MI 7.98 6.73 0.99 12.27 8.22 0.95 11.78 0.23 205.75 0.55
PBOC PBOC Holdings of CA 4.60 4.56 0.95 18.57 18.31 0.93 18.21 0.33 171.05 0.83
PFFB PFF Bancorp of Pomona CA 7.54 7.47 0.80 10.21 8.37 0.77 9.84 0.57 159.03 1.20
PHSB PHS Bancorp MHC of PA (45.0) 10.39 10.39 0.69 6.02 7.53 0.69 6.02 0.19 266.21 1.14
PSFI PS Financial of Chicago IL 16.37 16.37 1.48 7.72 7.76 1.50 7.80 NA NA 0.37
PVFC PVF Capital Corp. of OH 8.60 8.60 1.81 21.97 17.22 1.84 22.33 1.07 58.96 0.71
PBCI Pamrapo Bancorp, Inc. of NJ 10.97 10.95 1.10 9.50 8.29 1.10 9.50 1.08 41.33 0.73
PFED Park Bancorp of Chicago IL 13.73 13.73 1.26 7.59 9.07 1.25 7.53 0.01 NA 0.57
PVSA Parkvale Financial Corp of PA 7.06 7.03 1.05 14.50 12.00 1.03 14.29 0.23 484.10 1.30
PBHC Pathfinder BC MHC of NY (43.3)* 9.30 7.92 0.49 4.67 4.67 0.39 3.69 1.31 39.00 0.86
PEEK Peekskill Fin. Corp. of NY 12.82 12.82 0.71 4.33 6.15 0.78 4.76 0.46 79.27 1.11
PFSB PennFed Fin. Services of NJ 6.95 6.29 0.75 11.06 9.96 0.72 10.73 0.26 82.00 0.31
PBKB People's Bancshares of MA* 3.83 3.68 1.00 26.63 16.45 0.54 14.33 0.22 174.71 0.96
PFDC Peoples Bancorp of Auburn IN 13.86 13.86 1.40 9.76 8.73 1.40 9.76 0.11 284.77 0.34
PBCT Peoples Bank, MHC of CT (41.9)* 7.68 6.39 0.95 11.62 7.56 0.78 9.54 0.49 212.98 1.70
PFFC Peoples Fin. Corp. of OH 15.37 15.37 0.85 5.26 8.00 0.47 2.89 0.12 186.84 0.29
PHBK Peoples Heritage Fin Grp of ME* 6.14 5.32 1.08 15.56 8.30 1.25 18.01 0.53 151.59 1.66
PSFC Peoples Sidney Fin. Corp of OH 14.19 14.19 0.47 2.93 3.91 0.47 2.93 0.76 58.52 0.51
PERM Permanent Bancorp, Inc. of IN(8) 7.94 6.09 0.60 7.32 4.88 0.55 6.73 0.25 198.64 0.74
PCBC Perry Co. Fin. Corp. of MO 15.66 15.66 0.90 5.33 5.56 0.83 4.90 NA NA 0.19
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIBB Liberty Bancorp MHC of NJ(43.0 16.38 68.94 7.79 68.94 16.38 0.10 1.65 27.03
LFCO Life Financial Corp of CA(8) NM 49.88 4.81 49.88 NM 0.00 0.00 NM
LNCB Lincoln Bancorp of IN 20.83 68.78 15.60 68.78 20.83 0.32 3.20 66.67
LOGN Logansport Fin. Corp. of IN 10.34 72.72 10.67 72.72 10.34 0.44 4.34 44.90
MAFB MAF Bancorp, Inc. of IL 11.22 151.42 11.99 184.33 11.64 0.36 1.65 18.46
MECH MECH Financial Inc of CT(8)* 13.23 179.12 15.00 180.39 12.77 0.80 2.43 32.13
MFBC MFB Corp. of Mishawaka IN 11.54 81.42 7.33 81.42 12.50 0.36 2.01 23.23
MSBF MSB Financial, Inc of MI 10.49 80.26 12.36 80.26 12.32 0.34 4.00 41.98
MARN Marion Capital Holdings of IN 10.01 68.17 11.31 69.65 11.09 0.88 5.75 57.52
MRKF Market Fin. Corp. of OH 16.36 77.72 20.44 77.72 29.03 0.32 3.56 58.18
MASB MassBank Corp. of Reading MA* 9.18 100.42 11.05 101.72 12.30 1.14 3.71 34.03
MTXC Matrix Bancorp, Inc of CO 8.89 147.89 8.02 147.89 10.98 0.00 0.00 0.00
MFLR Mayflower Co-Op. Bank of MA* 10.95 151.42 11.13 153.60 11.75 0.60 4.68 51.28
MDBK Medford Bancorp, Inc. of MA* 11.01 150.77 11.58 157.48 12.32 0.44 2.65 29.14
MBFC MegaBank Financial Corp of CO(8) 13.24 211.27 23.47 229.59 13.64 0.00 0.00 0.00
MWBX MetroWest Bank of MA* 11.36 165.34 11.94 165.34 11.36 0.24 3.84 43.64
METF Metropolitan Fin. Corp. of OH 7.31 90.73 2.65 95.93 9.98 0.00 0.00 0.00
MCBN Mid-Coast Bancorp of ME 13.67 95.35 6.94 95.35 19.91 0.19 2.73 37.25
MFFC Milton Fed. Fin. Corp. of OH 15.79 100.67 9.82 100.67 16.44 0.60 5.00 NM
MBBC Monterey Bay Bancorp of CA 11.01 83.10 7.72 89.57 13.33 0.16 1.58 17.39
MONT Montgomery Fin. Corp. of IN 12.32 61.68 8.58 61.68 12.32 0.22 2.71 33.33
MYST Mystic Financial of MA* 17.28 81.62 12.02 81.62 19.75 0.24 2.17 37.50
NASB NASB Financial, Inc. of MO 8.39 137.11 13.55 140.05 13.35 0.32 2.72 22.86
NHTB NH Thrift Bancshares of NH 7.85 95.93 7.32 108.12 8.63 0.64 5.22 41.03
NSLB NS&L Bancorp, Inc of Neosho MO 15.91 73.68 11.69 74.26 17.21 0.64 6.10 NM
NMSB Newmil Bancorp, Inc. of CT* 14.70 141.73 14.07 141.73 14.38 0.40 3.09 45.45
NBCP Niagara Bancorp MHC of NY(43.9* 15.30 117.28 16.44 124.54 15.53 0.24 2.34 35.82
NBSI North Bancshares of Chicago IL 21.88 114.01 9.89 114.01 22.83 0.44 4.19 NM
FFFD North Central Bancshares of IA 8.68 95.32 10.46 112.62 8.77 0.40 2.52 21.86
NEIB Northeast Indiana Bncrp of IN 8.76 89.44 9.38 89.44 8.76 0.40 3.11 27.21
NWSB Northwest Bcrp MHC of PA (27.7 17.34 153.83 10.84 204.56 16.59 0.16 2.10 36.36
NWEQ Northwest Equity Corp. of WI(8) 16.60 143.55 19.39 143.55 18.09 0.68 3.06 50.75
NTMG Nutmeg FS&LA of CT 12.21 147.89 10.57 147.89 26.00 0.19 2.36 28.79
OCFC OceanFirst Fin. Corp of NJ 14.77 129.09 14.28 129.77 14.64 0.60 3.50 51.72
ONFC Oneida Fincl MHC of NY (44.5) 23.33 89.97 13.32 89.97 29.17 0.30 2.86 66.67
OTFC Oregon Trail Fin. Corp. of OR 12.99 67.98 10.87 67.98 12.99 0.32 3.20 41.56
OFCP Ottawa Financial Corp. of MI 12.17 146.22 11.67 173.40 12.68 0.48 2.61 31.79
PBOC PBOC Holdings of CA 5.46 106.81 4.92 107.88 5.57 0.00 0.00 0.00
PFFB PFF Bancorp of Pomona CA 11.94 126.08 9.50 127.28 12.38 0.24 1.20 14.29
PHSB PHS Bancorp MHC of PA (45.0) 13.28 83.50 8.67 83.50 13.28 0.28 3.29 43.75
PSFI PS Financial of Chicago IL 12.89 107.83 17.65 107.83 12.76 0.56 4.57 58.95
PVFC PVF Capital Corp. of OH 5.81 116.30 10.00 116.30 5.72 0.32 3.01 17.49
PBCI Pamrapo Bancorp, Inc. of NJ 12.06 116.54 12.79 116.81 12.06 1.25 6.10 73.53
PFED Park Bancorp of Chicago IL 11.03 93.98 12.90 93.98 11.11 0.48 3.20 35.29
PVSA Parkvale Financial Corp of PA 8.33 122.04 8.61 122.48 8.46 0.72 4.24 35.29
PBHC Pathfinder BC MHC of NY (43.3)* 21.39 106.00 9.86 124.50 27.10 0.24 2.95 63.16
PEEK Peekskill Fin. Corp. of NY 16.25 89.10 11.42 89.10 14.77 0.36 2.77 45.00
PFSB PennFed Fin. Services of NJ 10.04 105.75 7.35 116.95 10.35 0.16 1.21 12.12
PBKB People's Bancshares of MA* 6.08 148.90 5.70 155.06 11.30 0.84 4.76 28.97
PFDC Peoples Bancorp of Auburn IN 11.46 112.45 15.58 112.45 11.46 0.52 3.29 37.68
PBCT Peoples Bank, MHC of CT (41.9)* 13.22 162.95 12.51 195.92 16.12 1.12 5.43 71.79
PFFC Peoples Fin. Corp. of OH 12.50 66.79 10.26 66.79 22.73 0.64 8.53 NM
PHBK Peoples Heritage Fin Grp of ME* 12.06 183.35 11.26 211.76 10.41 0.48 3.14 37.80
PSFC Peoples Sidney Fin. Corp of OH 25.59 78.15 11.09 78.15 25.59 0.28 3.42 NM
PERM Permanent Bancorp, Inc. of IN(8) 20.51 155.20 12.32 202.37 22.29 0.28 1.82 37.33
PCBC Perry Co. Fin. Corp. of MO 17.97 101.26 15.85 101.26 19.54 0.50 2.48 44.64
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- ----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________ NPAs Resvs/ Resvs
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loan
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PHFC Pittsburgh Home Fin Corp of PA 5.30 5.24 0.59 9.81 9.85 0.59 9.89 1.21 38.91 0.70
PFSL Pocahontas Bancorp of AR 11.64 11.06 0.21 1.58 2.50 0.72 5.37 0.55 71.38 0.80
PTRS Potters Financial Corp of OH 7.66 7.66 0.98 12.24 11.45 0.94 11.79 0.07 NA 1.89
PRBC Prestige Bancorp of PA 7.78 7.78 0.45 5.47 6.76 0.43 5.20 0.35 129.47 0.60
PFNC Progress Financial Corp. of PA 6.29 5.57 0.94 14.68 8.97 1.22 19.05 1.57 46.95 1.13
PBCP Provident Bncp MHC of NY (46.7 11.11 10.81 0.47 5.05 2.60 0.52 5.54 0.95 71.79 0.97
PROV Provident Fin. Holdings of CA 8.15 8.15 1.14 12.20 14.14 0.71 7.58 0.40 157.98 0.87
PULB Pulaski Financial Corp of MO 20.45 20.45 0.97 4.66 5.30 0.71 3.44 0.67 58.96 0.53
PLSK Pulaski SB, MHC of NJ (47.0) 10.18 10.18 0.59 5.22 7.72 0.44 3.93 0.29 162.46 0.86
QCFB QCF Bancorp of Virginia MN 13.05 13.05 1.41 10.33 7.60 1.41 10.33 0.19 195.92 0.87
QCBC Quaker City Bancorp of CA 8.09 8.09 1.02 12.26 10.93 1.00 11.92 0.68 130.11 1.05
QCSB Queens County Bancorp of NY* 6.92 6.92 1.73 21.78 5.79 1.72 21.64 0.19 190.29 0.42
RELY Reliance Bancorp, Inc. of NY(8) 6.93 4.78 0.84 11.73 7.05 0.84 11.68 0.33 111.95 0.90
RCBK Richmond County Fin Corp of NY 12.54 11.02 1.30 8.66 5.58 1.27 8.49 0.25 205.19 0.99
RSBI Ridgewood Fin. MHC of NJ (47.0 9.19 9.19 0.01 0.14 0.18 0.28 3.29 0.10 350.97 0.61
RIVR River Valley Bancorp of IN 12.68 12.65 0.69 5.24 7.83 0.70 5.30 NA NA 1.37
RVSB Riverview Bancorp of WA 16.88 16.40 1.31 7.03 7.61 1.28 6.85 0.31 119.67 0.52
ROME Rome Bancp Inc MHC of NY (47.0* 16.34 16.34 0.77 4.69 8.24 0.66 4.06 0.39 207.53 1.37
RSLN Roslyn Bancorp, Inc. of NY* 9.12 9.09 0.11 0.97 0.51 1.12 9.80 0.28 187.69 1.08
SGVB SGV Bancorp of W. Covina CA(8) 6.63 6.32 0.52 7.59 5.12 0.53 7.79 0.46 88.95 0.55
SCFS Seacoast Fin Serv Corp of MA* 13.59 13.50 1.21 8.79 9.31 1.26 9.17 0.46 176.15 0.98
SKBO Skibo Fin Corp MHC of PA(44.9) 16.56 16.56 0.59 3.56 4.00 0.59 3.56 0.44 84.60 0.95
SOBI Sobieski Bancorp of S. Bend IN 11.53 11.53 0.59 4.84 7.90 0.59 4.84 0.11 278.23 0.37
SFFS Sound Fed Bp MHC of NY (44.1) 17.15 17.15 0.62 3.64 3.94 0.88 5.16 0.30 121.96 0.70
SJFC South Jersey Fin. Corp of NJ 16.87 16.87 0.08 0.49 0.58 0.82 4.82 0.10 304.97 0.70
SSFC South Street Fin. Corp. of NC* 15.23 15.23 0.30 1.88 2.16 0.26 1.63 0.13 190.67 0.37
SBAN SouthBanc Shares Inc. of SC 14.56 14.56 0.90 5.17 4.92 0.85 4.92 0.64 111.75 1.10
SCBS Southern Commun. Bncshrs of AL 12.78 12.78 0.93 6.49 6.00 0.93 6.49 0.34 352.51 1.72
SMBC Southern Missouri Bncrp of MO 13.74 13.74 1.04 7.54 9.57 0.93 6.73 0.69 99.83 0.94
SVRN Sovereign Bancorp, Inc. of PA 5.72 3.92 0.83 14.99 13.63 0.72 12.97 0.42 128.36 1.00
STFR St. Francis Cap. Corp. of WI 5.32 4.71 0.75 13.18 8.99 0.67 11.82 0.15 245.05 0.83
SFFC StateFed Financial Corp. of IA 17.81 17.81 1.15 6.44 6.73 1.12 6.26 1.88 14.83 0.33
SFIN Statewide Fin. Corp. of NJ(8) 7.24 7.22 0.76 9.52 5.58 0.80 10.01 0.34 140.69 0.90
STSA Sterling Financial Corp. of WA 4.70 2.44 0.46 9.25 11.52 0.42 8.43 0.61 99.76 0.85
SUFI Superior Financial Corp of AR 6.59 2.53 0.76 11.60 9.92 0.82 12.48 0.15 487.21 1.15
THRD TF Financial Corp. of PA 7.17 6.23 0.60 8.23 11.20 0.57 7.81 0.23 115.63 0.66
THTL Thistle Group Holdings of PA 14.35 14.35 0.90 5.02 8.75 0.87 4.84 0.08 273.00 0.81
TSBK Timberland Bancorp of WA 23.53 23.53 1.88 6.88 8.70 2.01 7.36 1.76 37.98 0.87
TRIC Tri-County Bancorp of WY 11.76 11.76 0.93 7.04 7.94 0.86 6.48 NA NA 0.84
TRYF Troy Financial Corp of NY 19.71 19.67 0.21 1.01 1.48 0.63 3.11 1.06 110.65 1.90
TWIN Twin City Bancorp, Inc. of TN 11.15 11.15 1.07 8.87 6.30 0.81 6.67 0.21 88.37 0.26
USAB USABancshares, Inc of PA(8)* 6.18 6.14 0.30 4.30 1.45 -0.15 -2.15 0.46 135.50 1.04
UCBC Union Community Bancorp of IN 31.79 31.79 1.69 4.76 6.41 1.67 4.70 0.19 177.73 0.39
UFBS Union Fincl. Bancshares of SC 7.17 5.86 0.85 11.02 14.68 0.73 9.50 0.21 196.71 0.56
UCFC United Community Fin. of OH 19.63 19.63 0.95 2.85 3.12 1.31 3.92 0.42 115.50 0.90
UBMT United Fin. Corp. of MT 11.17 10.47 1.02 8.06 8.03 1.00 7.90 NA NA 0.88
UPFC United PanAm Fin. Corp of CA(8) 14.45 14.12 -0.92 -5.02 -12.89 -4.02 -21.89 4.48 54.66 7.80
UTBI United Tenn. Bancshares of TN 18.38 17.21 0.84 4.05 5.03 0.86 4.12 0.36 185.03 1.10
VCAP Virginia Capital Bcshrs of VA 31.44 31.44 0.58 1.78 1.89 0.54 1.67 1.19 86.83 1.34
WHGB WHG Bancshares of MD 10.20 10.20 0.53 4.44 7.21 0.53 4.44 0.20 102.24 0.37
WSFS WSFS Financial Corp. of DE* 5.36 5.34 0.99 18.50 11.56 1.08 20.03 0.65 211.35 2.87
WVFC WVS Financial Corp. of PA 6.99 6.99 1.25 14.15 10.79 1.24 14.05 0.18 265.80 1.04
WRNB Warren Bancorp of Peabody MA* 8.86 8.86 1.37 14.31 9.73 1.35 14.12 0.39 277.13 1.50
WSBI Warwick Community Bncrp of NY* 12.61 12.61 0.63 3.86 4.91 0.47 2.87 0.36 90.22 0.58
WFSL Washington Federal, Inc. of WA 12.17 11.39 1.97 15.04 11.29 1.93 14.75 0.56 63.80 0.50
WAYN Wayne Svgs Bks MHC of OH (48.2 8.53 8.53 0.50 5.53 3.66 0.46 5.11 0.11 222.32 0.31
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PHFC Pittsburgh Home Fin Corp of PA 10.16 105.43 5.59 106.64 10.08 0.28 2.15 21.88
PFSL Pocahontas Bancorp of AR NM 68.89 8.02 72.46 11.76 0.24 4.00 NM
PTRS Potters Financial Corp of OH 8.74 107.12 8.21 107.12 9.07 0.36 3.03 26.47
PRBC Prestige Bancorp of PA 14.79 80.81 6.28 80.81 15.55 0.24 1.98 29.27
PFNC Progress Financial Corp. of PA 11.15 156.71 9.86 177.11 8.60 0.20 1.62 18.02
PBCP Provident Bncp MHC of NY (46.7 NM 149.08 16.56 153.18 NM 0.12 0.74 28.57
PROV Provident Fin. Holdings of CA 7.07 85.01 6.93 85.01 11.38 0.00 0.00 0.00
PULB Pulaski Financial Corp of MO 18.86 81.32 16.63 81.32 25.60 0.36 3.35 63.16
PLSK Pulaski SB, MHC of NJ (47.0) 12.95 65.60 6.68 65.60 17.16 0.32 4.34 56.14
QCFB QCF Bancorp of Virginia MN 13.16 134.44 17.55 134.44 13.16 0.00 0.00 0.00
QCBC Quaker City Bancorp of CA 9.15 108.84 8.80 108.84 9.41 0.00 0.00 0.00
QCSB Queens County Bancorp of NY* 17.28 NM 26.97 NM 17.40 1.00 3.88 67.11
RELY Reliance Bancorp, Inc. of NY(8) 14.18 171.64 11.89 248.80 14.24 0.84 2.45 34.71
RCBK Richmond County Fin Corp of NY 17.92 153.90 19.30 175.07 18.29 0.48 2.73 48.98
RSBI Ridgewood Fin. MHC of NJ (47.0 NM 72.65 6.67 72.65 24.48 0.00 0.00 0.00
RIVR River Valley Bancorp of IN 12.77 70.36 8.92 70.53 12.63 0.30 2.55 32.61
RVSB Riverview Bancorp of WA 13.14 98.86 16.69 101.76 13.48 0.36 3.47 45.57
ROME Rome Bancp Inc MHC of NY (47.0* 12.13 56.95 9.31 56.95 14.02 0.00 0.00 0.00
RSLN Roslyn Bancorp, Inc. of NY* NM 184.40 16.82 184.99 19.23 0.56 3.20 NM
SGVB SGV Bancorp of W. Covina CA(8) 19.54 143.93 9.54 150.94 19.03 0.00 0.00 0.00
SCFS Seacoast Fin Serv Corp of MA* 10.74 94.73 12.87 95.37 10.29 0.20 2.02 21.74
SKBO Skibo Fin Corp MHC of PA(44.9) 25.00 87.37 14.47 87.37 25.00 0.30 4.62 NM
SOBI Sobieski Bancorp of S. Bend IN 12.65 61.30 7.07 61.30 12.65 0.32 2.94 37.21
SFFS Sound Fed Bp MHC of NY (44.1) 25.36 86.62 14.85 86.62 17.90 0.00 0.00 0.00
SJFC South Jersey Fin. Corp of NJ NM 86.64 14.62 86.64 17.63 0.36 2.62 NM
SSFC South Street Fin. Corp. of NC* NM 98.30 14.97 98.30 NM 0.40 5.76 NM
SBAN SouthBanc Shares Inc. of SC 20.34 125.99 18.35 125.99 21.39 0.60 2.89 58.82
SCBS Southern Commun. Bncshrs of AL 16.67 126.42 16.16 126.42 16.67 0.33 3.30 55.00
SMBC Southern Missouri Bncrp of MO 10.45 77.23 10.61 77.23 11.70 0.50 3.92 40.98
SVRN Sovereign Bancorp, Inc. of PA 7.34 98.32 5.63 143.69 8.48 0.10 1.31 9.62
STFR St. Francis Cap. Corp. of WI 11.13 140.93 7.49 159.25 12.41 0.36 1.97 21.95
SFFC StateFed Financial Corp. of IA 14.86 96.24 17.14 96.24 15.30 0.30 2.93 43.48
SFIN Statewide Fin. Corp. of NJ(8) 17.93 183.72 13.29 184.00 17.05 0.52 2.13 38.24
STSA Sterling Financial Corp. of WA 8.68 79.66 3.74 153.63 9.53 0.00 0.00 0.00
SUFI Superior Financial Corp of AR 10.08 116.96 7.71 304.57 9.38 0.00 0.00 0.00
THRD TF Financial Corp. of PA 8.93 74.18 5.32 85.44 9.40 0.52 4.16 37.14
THTL Thistle Group Holdings of PA 11.43 66.30 9.51 66.30 11.84 0.24 3.62 41.38
TSBK Timberland Bancorp of WA 11.50 83.03 19.53 83.03 10.75 0.32 2.78 32.00
TRIC Tri-County Bancorp of WY 12.59 96.68 11.37 96.68 13.68 0.44 3.97 50.00
TRYF Troy Financial Corp of NY NM 68.17 13.44 68.31 22.02 0.20 1.97 NM
TWIN Twin City Bancorp, Inc. of TN 15.88 144.01 16.06 144.01 21.11 0.40 2.31 36.70
USAB USABancshares, Inc of PA(8)* NM 212.63 13.13 213.73 NM 0.00 0.00 0.00
UCBC Union Community Bancorp of IN 15.59 77.95 24.78 77.95 15.81 0.52 4.57 71.23
UFBS Union Fincl. Bancshares of SC 6.81 77.16 5.53 94.37 7.91 0.37 4.42 30.08
UCFC United Community Fin. of OH NM 150.29 29.50 150.29 23.30 0.30 2.93 NM
UBMT United Fin. Corp. of MT 12.46 102.69 11.47 109.58 12.72 1.04 5.68 70.75
UPFC United PanAm Fin. Corp of CA(8) NM 40.50 5.85 41.45 NM 0.00 0.00 NM
UTBI United Tenn. Bancshares of TN 19.88 86.28 15.85 92.14 19.53 0.30 2.70 53.57
VCAP Virginia Capital Bcshrs of VA NM 99.87 31.40 99.87 NM 0.40 2.52 NM
WHGB WHG Bancshares of MD 13.87 66.12 6.74 66.12 13.87 0.36 4.72 65.45
WSFS WSFS Financial Corp. of DE* 8.65 156.89 8.40 157.29 7.99 0.12 0.95 8.22
WVFC WVS Financial Corp. of PA 9.27 146.86 10.27 146.86 9.33 0.64 4.97 46.04
WRNB Warren Bancorp of Peabody MA* 10.27 157.56 13.96 157.56 10.42 0.40 5.33 54.79
WSBI Warwick Community Bncrp of NY* 20.35 86.36 10.89 86.36 27.32 0.21 2.02 41.18
WFSL Washington Federal, Inc. of WA 8.86 135.14 16.45 144.32 9.03 0.92 4.92 43.60
WAYN Wayne Svgs Bks MHC of OH (48.2 27.36 150.57 12.84 150.57 29.59 0.64 4.41 NM
</TABLE>
<PAGE>
RP FINANCIAL, LC.
- -----------------------------------------
Financial Services Industry Consultants
1700 North Moore Street, Suite 2210
Arlington, Virginia 22209
(703) 528-1700
Exhibit IV-1 (continued)
Weekly Thrift Market Line - Part Two
Prices As Of December 17, 1999
<TABLE>
<CAPTION>
Key Financial Ratios Asset Quality Ratios
---------------------------------------------------------- ----------------------
Tang. Reported Earnings Core Earnings
Equity/ Equity/ ______________________ _______________ NPAs Resvs/ Resvs
Financial Institution Assets Assets ROA(5) ROE(5) ROI(5) ROA(5) ROE(5) Assets NPAs Loan
- --------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WCFB Wbstr Cty FSB MHC of IA (45.7) 24.89 24.89 1.36 5.44 4.39 1.45 5.79 0.10 403.16 0.64
WBST Webster Financial Corp. of CT 6.37 4.87 1.00 16.28 10.71 0.94 15.32 0.42 166.93 1.16
WEFC Wells Fin. Corp. of Wells MN 12.19 12.19 1.08 8.29 11.55 1.03 7.88 0.38 116.42 0.51
WEBK West Essex MHC of NJ (42.2) 13.53 12.13 0.64 4.94 5.61 0.64 4.94 0.48 84.49 0.91
WSTR WesterFed Fin. Corp. of MT 8.92 7.09 0.72 7.55 10.04 0.67 7.04 0.41 128.80 0.84
WOFC Western Ohio Fin. Corp. of OH 13.44 13.44 0.42 3.09 4.25 -0.07 -0.54 0.95 90.24 1.10
WEHO Westwood Hmstd Fin Corp of OH(8) 15.29 15.29 0.88 5.06 5.30 0.89 5.15 0.26 82.58 0.24
WGBC Willow Grv Bcp MHC of PA (45.3 11.88 11.50 0.84 7.04 8.17 0.84 7.04 0.33 205.66 0.84
YFCB Yonkers Fin. Corp. of NY 7.00 7.00 0.67 6.81 6.95 0.63 6.41 0.16 199.07 0.50
YFED York Financial Corp. of PA 7.07 7.07 0.70 8.43 7.83 0.57 6.82 1.26 57.12 1.05
<CAPTION>
Pricing Ratios Dividend Data(6)
----------------------------------------- -----------------------
Price/ Price/ Ind. Divi-
Price/ Price/ Price/ Tang. Core Div./ dend Payout
Financial Institution Earning Book Assets Book Earnings Share Yield Ratio(7)
- --------------------- ------- ------- ------- ------- ------- ------- ------- -------
(X) (%) (%) (%) (x) ($) (%) (%)
NASDAQ Listed OTC Companies (continued)
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WCFB Wbstr Cty FSB MHC of IA (45.7) 22.75 125.84 31.32 125.84 21.35 0.80 5.76 NM
WBST Webster Financial Corp. of CT 9.34 147.04 9.36 192.43 9.92 0.48 2.17 20.25
WEFC Wells Fin. Corp. of Wells MN 8.66 76.42 9.31 76.42 9.10 0.60 4.85 41.96
WEBK West Essex MHC of NJ (42.2) 17.83 82.80 11.20 92.33 17.83 0.30 3.12 55.56
WSTR WesterFed Fin. Corp. of MT 9.96 79.03 7.05 99.32 10.68 0.62 3.84 38.27
WOFC Western Ohio Fin. Corp. of OH 23.55 76.76 10.31 76.76 NM 1.00 6.15 NM
WEHO Westwood Hmstd Fin Corp of OH(8) 18.87 98.39 15.04 98.39 18.54 0.48 4.62 NM
WGBC Willow Grv Bcp MHC of PA (45.3 12.24 80.04 9.51 82.66 12.24 0.36 3.97 48.65
YFCB Yonkers Fin. Corp. of NY 14.39 119.79 8.38 119.79 15.29 0.36 2.10 30.25
YFED York Financial Corp. of PA 12.77 109.99 7.78 109.99 15.79 0.50 4.17 53.19
</TABLE>
<PAGE>
Exhibit V-1
RP Financial Firm Qualifications Statement
<PAGE>
RP Financial, LC.
- ------------------------------------
Financial Services Industry Consultants
FIRM QUALIFICATION STATEMENT
RP Financial provides financial and management consulting and valuation services
to the financial services industry nationwide, particularly federally-insured
financial institutions. RP Financial establishes long- term client relationships
through its wide array of services, emphasis on quality and timeliness, hands-on
involvement by our principals and senior consulting staff, and careful
structuring of strategic plans and transactions. RP Financial's staff draws from
backgrounds in consulting, regulatory agencies and investment banking, thereby
providing our clients with considerable resources.
STRATEGIC AND CAPITAL PLANNING
RP Financial's strategic and capital planning services are designed to provide
effective workable plans with quantifiable results. Through a program known as
SAFE (Strategic Alternatives Financial Evaluations), RP Financial analyzes
strategic options to enhance shareholder value or other established objectives.
Our planning services involve conducting situation analyses; establishing
mission statements, strategic goals and objectives; and identifying strategies
for enhancement of franchise value, capital management and planning, earnings
improvement and operational issues. Strategy development typically includes the
following areas: capital formation and management, asset/liability targets,
profitability, return on equity and market value of stock. Our proprietary
financial simulation model provides the basis for evaluating the financial
impact of alternative strategies and assessing the feasibility/compatibility of
such strategies with regulations and/or other guidelines.
MERGER AND ACQUISITION SERVICES
RP Financial's merger and acquisition (M&A) services include targeting
candidates and potential acquirors, assessing acquisition merit, conducting
detailed due diligence, negotiating and structuring transactions, preparing
merger business plans and financial simulations, rendering fairness opinions and
assisting in implementing post- acquisition strategies. Through our financial
simulations, comprehensive in-house data bases, valuation expertise and
regulatory knowledge, RP Financial's M&A consulting focuses on structuring
transactions to enhance shareholder returns.
VALUATION SERVICES
RP Financial's extensive valuation practice includes valuations for a variety of
purposes including mergers and acquisitions, mutual-to-stock conversions, ESOPs,
subsidiary companies, mark-to-market transactions, loan and servicing
portfolios, non-traded securities, core deposits, FAS 107 (fair market value
disclosure), FAS 122 (loan servicing rights) and FAS 123 (stock options). Our
principals and staff are highly experienced in performing valuation appraisals
which conform with regulatory guidelines and appraisal industry standards. RP
Financial is the nation's leading valuation firm for mutual-to-stock conversions
of thrift institutions.
OTHER CONSULTING SERVICES AND DATA BASES
RP Financial offers a variety of other services including branching strategies,
feasibility studies and special research studies, which are
complemented by our quantitative and computer skills. RP Financial's consulting
services are aided by its in-house data base resources for commercial banks and
savings institutions and proprietary valuation and financial simulation models.
YEAR 2000 SERVICES
RP Financial, through a relationship with a computer research and development
company with a proprietary methodology, offers Year 2000 advisory and conversion
services to financial institutions which are more cost effective and less
disruptive than most other providers of such service.
RP Financial's Key Personnel (Years of Relevant Experience)
Ronald S. Riggins, Managing Director (19)
William E. Pommerening, Managing Director (15)
Gregory E. Dunn, Senior Vice President (17)
James P. Hennessey, Senior Vice President (14)
James J. Oren, Senior Vice President (12)
- --------------------------------------------------------------------------------
Washington Headquarters
Rosslyn Center
1700 North Moore Street, Suite 2210 Telephone: (703) 528-1700
Arlington, VA 22209 Fax No: (703) 528-1788
74
