Attached files
Exhibit 99.3
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
1895 Bancorp of Wisconsin, Inc.
Greenfield, Wisconsin
As Of:
August 7, 2018
Prepared By:
Keller & Company, Inc.
555 Metro Place North
Suite 524
Dublin, Ohio 43017
(614) 766-1426
KELLER & COMPANY
KELLER & COMPANY, INC.
FINANCIAL INSTITUTION CONSULTANTS
555 METRO PLACE NORTH
SUITE 524
DUBLIN, OHIO 43017
(614) 766-1426 (614) 766-1459 FAX
September 5, 2018
The Boards of Directors
1895 Bancorp of Wisconsin, Inc.
PyraMax Bank, FSB
7001 West Edgerton Avenue
Greenfield, Wisconsin 53220
To the Boards:
We hereby submit an independent appraisal (Appraisal) of the pro forma market value of the to-be-issued stock of 1895 Bancorp of Wisconsin, Inc. (the Corporation), which is the mid-tier holding company of PyraMax Bank, FSB, Greenfield, Wisconsin, (PyraMax or the Bank). Such stock is to be issued in connection with the application by the Corporation to complete a minority stock offering, with 1895 Bancorp of Wisconsin, MHC, a federally chartered mutual holding company, to own approximately 55.0 percent of the shares of the Corporation, with 44.0 percent of the shares of the Corporation to be offered to the public and 1.0 percent to be issued to the new Foundation. This appraisal was prepared and provided to the Corporation in accordance with the appraisal requirements of the Federal Reserve Board.
Keller & Company, Inc. is an independent, financial institution consulting firm that serves both thrift institutions and banks. The firm is a full-service consulting organization, as described in more detail in Exhibit A, specializing in business and strategic plans, stock valuations, conversion and reorganization appraisals, market studies and fairness opinions for thrift institutions and banks. The firm has affirmed its independence in this transaction with the preparation of its Affidavit of Independence, a copy of which is included as Exhibit C.
Our appraisal is based on the assumption that the data and material provided to us by the Corporation, PyraMax and the independent auditors, Wipfli, LLP, are both accurate and complete. We did not verify the financial statements provided to us, nor did we conduct independent valuations of the Banks assets and liabilities. We have also used information from other public sources, but we cannot assure the accuracy of such material.
In the preparation of this appraisal, we held discussions with the management of the Corporation and the Bank, with the law firm of Luse Gorman, PC, the Banks conversion counsel, and with Wipfli, LLP. Further, we viewed the Corporations local economy and primary market area.
Boards of Directors
PyraMax Bank, FSB
1895 Bancorp of Wisconsin, Inc.
September 5, 2018
Page 2
This valuation must not be considered to be a recommendation as to the purchase of stock in the Corporation, and we can provide no guarantee or assurance that any person who purchases shares of the Corporations stock will be able to later sell such shares at a price equivalent to the price designated in this appraisal.
Our valuation will be updated if required and will give consideration to any new developments in the Corporations operation that have an impact on operations or financial condition. Further, we will give consideration to any changes in general market conditions and to specific changes in the market for publicly traded thrift institutions. Based on the material impact of any such changes on the pro forma market value of the Corporation as determined by this firm, we will make necessary adjustments to the Corporations appraised value in such appraisal update.
It is our opinion that as of August 7, 2018, the pro forma market value or appraised value of 1895 Bancorp of Wisconsin, Inc. was $55,000,000 at the midpoint of the valuation range, with a minority public offering of $24,200,000 or 2,420,000 shares at $10 per share and foundation shares of 55,000 shares at $10 per share or $550,000 for a combined 45.0 percent of the total value or $24,750,000 or 2,475,000 shares at $10 per share.
Very truly yours,
KELLER & COMPANY, INC.
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
1895 Bancorp of Wisconsin, Inc.
Greenfield, Wisconsin
As Of:
August 7, 2018
TABLE OF CONTENTS
PAGE | ||||||
INTRODUCTION |
1 | |||||
I. | Description of PyraMax Bank, FSB | |||||
General | 4 | |||||
Performance Overview | 8 | |||||
Income and Expense | 10 | |||||
Yields and Costs | 15 | |||||
Interest Rate Sensitivity | 17 | |||||
Lending Activities | 19 | |||||
Nonperforming Assets | 23 | |||||
Investments | 26 | |||||
Deposit Activities | 26 | |||||
Borrowings | 27 | |||||
Subsidiaries | 27 | |||||
Office Properties | 28 | |||||
Management | 28 | |||||
II. | Description of Primary Market Area | 30 | ||||
III. | Comparable Group Selection | |||||
Introduction | 37 | |||||
General Parameters | ||||||
Merger/Acquisition | 38 | |||||
Trading Exchange | 39 | |||||
IPO Date | 39 | |||||
Geographic Location | 40 | |||||
Asset Size | 40 | |||||
Balance Sheet Parameters | ||||||
Introduction | 42 | |||||
Cash and Investments to Assets | 42 | |||||
Mortgage-Backed Securities to Assets | 43 | |||||
One- to Four-Family Loans to Assets | 43 | |||||
Total Net Loans to Assets | 44 | |||||
Total Net Loans and Mortgage-Backed Securities to Assets | 44 | |||||
Borrowed Funds to Assets | 44 | |||||
Equity to Assets | 45 | |||||
Performance Parameters |
||||||
Introduction | 46 |
TABLE OF CONTENTS (cont.)
PAGE | ||||||
III. | Comparable Group Selection (cont.) | |||||
Performance Parameters (cont.) | ||||||
Return on Average Assets | 46 | |||||
Return on Average Equity | 47 | |||||
Net Interest Margin | 47 | |||||
Operating Expenses to Assets | 48 | |||||
Noninterest Income to Assets | 48 | |||||
Asset Quality Parameters | ||||||
Introduction | 49 | |||||
Nonperforming Assets to Total Assets | 49 | |||||
Repossessed Assets to Assets | 49 | |||||
Loan Loss Reserve to Assets | 50 | |||||
The Comparable Group | 51 | |||||
IV. | Analysis of Financial Performance | 52 | ||||
V. | Market Value Adjustments | |||||
Earnings Performance | 55 | |||||
Market Area | 60 | |||||
Financial Condition | 61 | |||||
Asset, Loan and Deposit Growth | 64 | |||||
Dividend Payments | 65 | |||||
Subscription Interest | 66 | |||||
Liquidity/Marketability of Stock | 67 | |||||
Management | 68 | |||||
Marketing of the Issue | 70 | |||||
VI. | Valuation Methods | |||||
Introduction | 71 | |||||
Valuation Methods | 71 | |||||
Valuation Range | 72 | |||||
Price to Book Value Method | 72 | |||||
Price to Core Earnings Method | 73 | |||||
Price to Assets Method | 74 | |||||
Valuation Analysis and Summary | 75 | |||||
Valuation Conclusion | 76 |
LIST OF EXHIBITS
NUMERICAL EXHIBITS |
PAGE | |||
1 | Balance Sheets - At June 30, 2018 and at December 31, 2017 | 79 | ||
2 | Balance Sheets - At December 31, 2013 through 2016 | 80 | ||
3 | Statement of Income for the Twelve Months Ended June 30, 2018 and the Year Ended December 31, 2017 | 81 | ||
4 | Statements of Income for the Years Ended December 31, 2013 through 2016 | 82 | ||
5 | Selected Financial Information | 83 | ||
6 | Income and Expense Trends | 84 | ||
7 | Normalized Earnings Trend | 85 | ||
8 | Performance Indicators | 86 | ||
9 | Volume/Rate Analysis | 87 | ||
10 | Yield and Cost Trends | 88 | ||
11 | Net Portfolio Value | 89 | ||
12 | Loan Portfolio Composition | 90 | ||
13 | Loan Maturity Schedule | 91 | ||
14 | Delinquent Loans | 92 | ||
15 | Nonperforming Assets | 93 | ||
16 | Classified Assets | 94 | ||
17 | Allowance for Loan Losses | 95 | ||
18 | Investment Portfolio Composition | 96 | ||
19 | Mix of Deposits | 97 | ||
20 | Certificates of Deposit by Maturity | 98 | ||
21 | Borrowed Funds Activity | 99 | ||
22 | Offices of PyraMax Bank, FSB | 100 | ||
23 | Management of the Bank | 101 | ||
24 | Key Demographic Data and Trends | 102 | ||
25 | Key Housing Data | 103 | ||
26 | Major Sources of Employment | 104 | ||
27 | Unemployment Rates | 105 | ||
28 | Market Share of Deposits | 106 | ||
29 | National Interest Rates by Quarter | 107 |
LIST OF EXHIBITS (cont.)
NUMERICAL EXHIBITS |
PAGE | |||
30 | Thrift Share Data and Pricing Ratios | 108 | ||
31 | Key Financial Data and Ratios | 115 | ||
32 | Recently Converted Thrift Institutions | 122 | ||
33 | Acquisitions and Pending Acquisitions | 123 | ||
34 | Balance Sheets Parameters - Comparable Group Selection | 124 | ||
35 | Operating Performance and Asset Quality Parameters - Comparable Group Selection | 126 | ||
36 | Balance Sheet Ratios - Final Comparable Group | 128 | ||
37 | Operating Performance and Asset Quality Ratios - Final Comparable Group | 129 | ||
38 | Balance Sheet Totals - Final Comparable Group | 130 | ||
39 | Balance Sheet - Asset Composition Most Recent Quarter | 131 | ||
40 | Balance Sheet - Liability and Equity Most Recent Quarter | 132 | ||
41 | Income and Expense Comparison - Trailing Four Quarters | 133 | ||
42 | Income and Expense Comparison as a Percent of Average Assets | 134 | ||
43 | Yields, Costs and Earnings Ratios - Trailing Four Quarters | 135 | ||
44 | Reserves and Supplemental Data | 136 | ||
45 | Comparable Group Ratios - Full Conversion | 137 | ||
46 | Valuation Analysis and Conclusions - Full Conversion | 138 | ||
47 | Pro Forma Effects of Conversion Proceeds - Minimum - Full Conversion | 139 | ||
48 | Pro Forma Effects of Conversion Proceeds - Midpoint - Full Conversion | 140 | ||
49 | Pro Forma Effects of Conversion Proceeds - Maximum - Full Conversion | 141 | ||
50 | Pro Forma Effects of Conversion Proceeds - Maximum, as Adjusted - Full Conversion | 142 | ||
51 | Summary of Valuation Premium or Discount - Full Conversion | 143 | ||
52 | Comparable Group Ratios - Minority Offering | 144 | ||
53 | Valuation Analysis and Calculation - Minority Offering | 145 | ||
54 | Projected Effect of Conversion Proceeds - Minimum - Minority Offering | 146 | ||
55 | Projected Effect of Conversion Proceeds - Midpoint - Minority Offering | 147 | ||
56 | Projected Effect of Conversion Proceeds - Maximum - Minority Offering | 148 | ||
57 | Projected Effect of Conversion Proceeds - Maximum, as adjusted - Minority Offering | 149 | ||
58 | Summary of Valuation of Valuation Premium or Discount - Minority Offering | 150 |
ALPHABETICAL EXHIBITS | PAGE | |||
A | Background and Qualifications | 152 | ||
B | RB 20 Certification | 156 | ||
C | Affidavit of Independence | 157 |
INTRODUCTION
Keller & Company, Inc. is an independent appraisal firm for financial institutions and has prepared this Conversion Valuation Appraisal Report (Report) to provide the pro forma market value of the to-be-issued common stock of 1895 Bancorp of Wisconsin, Inc. (the Corporation), which will be formed as a mid-tier holding company to own all of the common stock of PyraMax Bank, FSB (PyraMax or the Bank), Greenfield, Wisconsin. Under the Plan of Conversion, the Corporation will be majority owned by 1895 Bancorp of Wisconsin, MHC, a federally chartered mutual holding company, which will own 55.0 percent of the Corporation. The Corporation will sell to the public 44.0 percent of the appraised value of the Corporation as determined in this Report in a minority stock offering and will give 55,000 shares or 1.0 percent to the new foundation, 1895 Financial Community Foundation, for a combined 45.0 percent of shares to be issued with the remaining 55.0 percent of the shares outstanding held by 1895 Bancorp of Wisconsin, MHC. The shares of common stock are to be issued in connection with the Banks Application for Approval of a Minority Stock Offering and Reorganization from a federally chartered mutual savings and loan association to a federally chartered stock savings and loan association as a subsidiary of a mid-tier holding company.
The Application is being filed with the Federal Reserve Board (FRB) and the Securities and Exchange Commission (SEC). Such Application for Conversion has been reviewed by us, including the Prospectus and related documents, and discussed with the Banks management and the Banks conversion counsel, Luse Gorman, PC, Washington, D.C.
This conversion appraisal was prepared based on regulatory guidelines entitled Guidelines for Appraisal Reports for the Valuation of Savings Institutions Converting from the Mutual to Stock Form of Organization, and the Revised Guidelines for Appraisal Reports and represents a full appraisal report. The Report provides detailed exhibits based on the Revised Guidelines and a discussion on each of the factors that need to be considered. Our valuation will be updated in accordance with the Revised Guidelines and will consider any changes in market conditions for thrift institutions.
1
Introduction (cont.)
The pro forma market value is defined as the price at which the stock of the Corporation after conversion would change hands between a typical willing buyer and a typical willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, and with both parties having reasonable knowledge of relevant facts in an arms-length transaction. The appraisal assumes the Bank is a going concern and that the shares issued by the Corporation in the conversion are sold in noncontrol blocks.
As part of our appraisal procedure, we have reviewed the financial statements for the five fiscal years ended December 31, 2013, 2014, 2015, 2016 and 2017, and unaudited financial statements for the six months ended June 30, 2017 and 2018, and discussed them with PyraMaxs management and with PyraMaxs independent auditors, Wipfli, LLP, Milwaukee, Wisconsin. We have also discussed and reviewed with management other financial matters and have reviewed internal projections. We have reviewed the Corporations preliminary Form S-1 and the related filings and discussed them with management and with the Banks conversion counsel.
To gain insight into the Banks local market condition, we have traveled PyraMaxs market area where it operates nine offices, comprised of its main office and eight branches. The Banks main office is in Greenfield, Wisconsin, and the eight branches are in Franklin, Grafton, Milwaukee, Mukwonago, South Milwaukee, Third Ward, Waukesha and West Allis.
We have studied the economic and demographic characteristics of the primary market area, and analyzed the Banks primary market area relative to Wisconsin and the United States. We have also examined the competitive market within which PyraMax operates, giving consideration to the areas numerous financial institution offices, mortgage banking offices, and credit union offices and other key market area characteristics, both positive and negative.
We have given consideration to the market conditions for securities in general and for publicly traded thrift stocks in particular. We have examined the performance of selected publicly traded thrift institutions and compared the performance of PyraMax to those selected institutions.
2
Introduction (cont.)
Our valuation is not intended to represent and must not be interpreted to be a recommendation of any kind as to the desirability of purchasing the to-be-outstanding shares of common stock of the Corporation. Giving consideration to the fact that this appraisal is based on numerous factors that can change over time, we can provide no assurance that any person who purchases the stock of the Corporation in this mutual-to-stock conversion will subsequently be able to sell such shares at prices similar to the pro forma market value of the Corporation as determined in this conversion appraisal.
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I. | DESCRIPTION OF PYRAMAX BANK, FSB |
GENERAL
PyraMax Bank, FSB (PyraMax) was organized in 1895 as a state-chartered mutual savings and loan association with the name, South Milwaukee Savings and Loan Association. The Bank later converted to a federal chartered savings bank and changed its name to PyraMax Bank, FSB in 2000.
PyraMax conducts its business from its main office in Greenfield and its eight branch offices. PyraMax has six offices in Milwaukee County, two offices in Waukesha County and one office in Ozaukee County. The Bank has entered into an agreement to sell its Milwaukee branch in Milwaukee County with an expected closing date in the fourth quarter of 2018. The Banks primary retail market area is focused on Milwaukee County and extends into Waukesha and Ozaukee Counties.
PyraMaxs deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (FDIC) in the Bank Insurance Fund (BIF). The Bank is also subject to certain reserve requirements of the Board of Governors of the Federal Reserve Bank (the FRB). PyraMax is a member of the Federal Home Loan Bank (the FHLB) of Chicago and is regulated by the OCC. As of June 30, 2018, PyraMax had assets of $482,617,000 deposits of $404,560,000 and equity of $37,691,000.
PyraMax has been principally engaged in the business of serving the financial needs of the public in its local communities and throughout its primary market area as a community-oriented institution. PyraMax has been actively involved in the origination of commercial real estate loans and one- to four-family mortgage loans, with commercial real estate loans representing 49.3 percent of its loan portfolio at June 30, 2018. One- to four-family mortgage loans represented a lesser 29.0 percent of its loan portfolio at June 30, 2018. The Banks primary sources of funds have been retail deposits from residents in its local communities and to a lesser extent, FHLB advances. The Bank is also an originator of multi-family loans, construction loans, commercial business loans, home equity loans, and consumer loans. Consumer loans include automobile loans, loans on deposit accounts and other secured and unsecured personal loans.
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General (cont.)
The Bank had cash and investments of $77.3 million, or 16.0 percent of its assets, excluding FHLB stock which totaled $1,818,000 or 0.4 percent of assets at June 30, 2018. The Bank had $52.0 million of its investments in mortgage-backed and related securities representing 10.8 percent of assets. Deposits, principal payments, FHLB advances and equity have been the primary sources of funds for the Banks lending and investment activities.
The total amount of stock to be sold by the Corporation in the minority stock offering will be $24,200,000 or 2,420,000 shares at $10 per share, representing 44.0 percent of the midpoint fully converted appraised value of $55.0 million, with another 55,000 shares to be issued to the new foundation. The net conversion proceeds will be $22.7 million, net of conversion expenses of approximately $1,500,000. The actual cash proceeds to the Bank of $11.35 million will represent 50.0 percent of the net conversion proceeds. The ESOP will represent 8.0 percent of a 49.0 percent minority offering or 215,600 shares at $10 per share, representing $2,156,000 or 3.92 percent of the total value. The Banks net proceeds will be used to fund new loans and to invest in securities following their initial deployment to short term investments. The Bank may also use the proceeds to expand services, expand operations or acquire other financial service organizations, diversify into other businesses, or for any other purposes authorized by law. The Corporation will use its proceeds to fund the ESOP and to invest in short-term deposits.
The Bank has experienced a modest deposit increase over the past three fiscal years, with deposits increasing 10.3 percent from December 31, 2015, to December 31, 2017, or an average of 3.7 percent per year. From December 31, 2016, to December 31, 2017, deposits increased by $30.4 million or 9.1 percent, compared to an increase of 1.7 percent in fiscal 2016. For the six months ended June 30, 2018, deposits increased a modest 3.9 percent or 7.8 percent on an annualized basis.
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General (cont.)
The Bank has experienced an increase in its loan portfolio during the past three years and in the most recent six months and has focused on monitoring its asset quality position, on controlling its net interest margin and on maintaining a reasonable equity to assets ratio. Equity to assets increased from 8.94 percent of assets at December 31, 2015, to 8.95 percent at December 31, 2017, and then decreased to 8.16 percent at June 30, 2018, impacted by the Banks stronger growth in assets.
The primary lending strategy of PyraMax has been to focus on the origination of commercial real estate loans, adjustable-rate and fixed-rate one-to four-family mortgage loans, the origination of home equity loans and multi-family loans, with less activity in construction loans and consumer loans.
The Banks share of one- to four-family mortgage loans has decreased modestly from 36.0 percent of gross loans at December 31, 2013, to 29.0 percent at June 30, 2018. Commercial real estate loans, including multi-family loans, increased from 36.6 percent to 49.3 percent of loans December 31, 2013, to June 30, 2018. Construction loans increased from 0.3 percent of loans to 0.9 percent from December 31, 2013, to June 30, 2018. One- to four-family loans and commercial loans, excluding home equity loans, as a group increased modestly from 87.9 percent of gross loans at December 31, 2013, to 87.8 percent at June 30, 2018. The increase in these loans was offset by the Banks decreases in home equity loans and consumer loans. The Banks share of consumer loans decreased from a minimal 0.7 percent to 0.6 percent during the same time period, and home equity loans decreased from 17.1 percent to 10.7 percent of gross loans.
Managements internal strategy has also included continued emphasis on maintaining an adequate and appropriate level of allowance for loan losses relative to loans and nonperforming assets in recognition of the more stringent requirements within the industry to establish and maintain a higher level of general valuation allowances and also in recognition of the Banks stronger growth in loans. At December 31, 2013, PyraMax had $3,834,000 in its loan loss allowance or 1.38 percent of gross loans, and 31.63 percent of nonperforming loans with the loan loss allowance decreasing to $3,092,000 and representing a lower 0.83 percent of gross loans and a higher 104.41 percent of nonperforming loans at June 30, 2018.
6
General (cont.)
The basis of earnings for the Bank has been interest income from loans and investments with the net interest margin being the key determinant of net earnings with an emphasis on strengthening noninterest income and reducing noninterest expenses. With a primary dependence on net interest margin for earnings, management will focus on striving to maintain the Banks net interest margin without undertaking excessive credit risk combined with controlling the Banks interest risk position and continuing to pursue reducing noninterest expenses, control nonperforming assets, and strengthening noninterest income.
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PERFORMANCE OVERVIEW
The financial position of PyraMax at fiscal year end December 31, 2013, through December 31, 2017, and at June 30, 2018, is shown in Exhibits 1 and 2, and the earnings performance of PyraMax for the fiscal years ended December 31, 2013, through 2017 and for the twelve months ended June 30, 2018, is shown in Exhibits 3 and 4. Exhibit 5 provides selected financial data at December 31, 2013 through 2017 and at June 30, 2018. PyraMax has experienced an increase in its loan portfolio, asset base, and deposits from December 31, 2013, through June 30, 2018, with a decrease in cash and investments. The most recent trend for the Bank from December 31, 2017, to June 30, 2018, was a modest increase in assets, a modest decrease in cash and investments, a moderate increase in loans with a modest increase in deposits.
With regard to the Banks historical financial condition, PyraMax has experienced a modest increase in assets from December 31, 2013, through June 30, 2018, with a moderate increase in loans, a moderate increase in deposits and a minimal increase in the dollar level of equity.
The Bank witnessed an increase in assets of $52.7 million or 12.3 percent for the period of December 31, 2013, to June 30, 2018, representing an average annual increase of 2.72 percent. Over the past two fiscal periods, the Bank experienced its largest dollar increase in assets of $24.5 million in 2016, due primarily to a $24.0 million increase in cash and investments, with a $1.0 million decrease in loans. During the Banks recent fiscal year of 2017, assets increased $18.2 million or 4.0 percent, compared to an increase of $24.5 million or 5.8 percent in 2016.
PyraMaxs net loan portfolio, which includes mortgage loans and nonmortgage loans, increased from $275.0 million at December 31, 2013, to $369.2 million at June 30, 2018, and represented a total increase of $94.2 million, or 34.3 percent. The average annual increase during that period was 7.61 percent. For the year ended December 31, 2017, net loans increased $18.4 million or 5.9 percent to $331.4 million, compared to an increase of $37.8 million or 11.4 percent to $369.2 million in the six months ended June 30, 2018.
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Performance Overview (cont.)
PyraMax has obtained funds through deposits and FHLB advances with a moderate use of FHLB advances totaling $27.7 million at June 30, 2018. The Banks competitive rates for deposits in its local market in conjunction with its focus on service have been the sources for competing for retail deposits. Deposits increased $30.4 million or 8.5 percent from December 31, 2016 to 2017, and increased $15.3 million or 3.9 percent, or 7.8 percent, annualized, to $404.6 million at June 30, 2018, from December 31, 2017.
The Bank witnessed a slight increase in its dollar equity level from December 31, 2013 to June 30, 2018. At December 31, 2013, the Bank had an equity level of $37.5 million, representing an 8.72 percent equity to assets ratio and decreased to $37.3 million at December 31, 2016, representing a lower 8.29 percent equity to assets ratio. At December 31, 2017, equity was $39.0 million and a higher 8.33 percent of assets, and then decreased to $37.7 million and a modestly lower 7.81 percent at June 30, 2018.
The overall decrease in the equity to assets ratio from December 31, 2013, to June 30, 2018, was impacted by the Banks increase in assets. The dollar level of equity increased $182,000 or 0.5 percent from December 31, 2013, to June 30, 2018, representing an average annual increase of 0.1 percent.
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INCOME AND EXPENSE
Exhibit 6 presents selected operating data for PyraMax. This table provides key income and expense figures in dollars for the years ended December 31, 2013, 2014, 2015, 2016 and 2017, and for the six months ended June 30, 2017 and 2018.
PyraMax witnessed a modest increase in its dollar level of interest income from 2013 to 2017. Interest income was $14.8 million in 2013 and a lower $13.9 million in 2015. Interest income then decreased in the year ended December 31, 2016, to $13.8 million or $59,000 and then increased $1.5 million to $15.3 million at December 31, 2017. In the six months ended June 30, 2018, interest income increased to $8.01 million or $16.0 million, annualized.
The Banks interest expense experienced a modest decrease from 2013 to 2017. Interest expense decreased from $3.8 million in 2013 to $2.6 million in 2015, representing a decrease of $1.2 million or 32.0 percent. Interest expense then increased by $129,000 or 5.0 percent in 2016 to $2.69 million and increased $676,000 or 25.2 percent in 2017 to $3.4 million. In the six months ended June 30, 2018, interest expense was $1,948,000 or a higher $3.9 million, annualized. Such increase in interest income from 2013 through June 30, 2018, notwithstanding the smaller increase in interest expense, resulted in a modest dollar increase in annual net interest income but a decrease in net interest margin. Net interest income decreased in the year ended December 31, 2015, to $11,300,000, then decreased to $11,112,000 in 2016, then increased to $11,895,000 in 2017, and then increased to $6,065,000 in the six months ended June 30, 2018, or $12,130,000, annualized.
The Bank has made no provisions for loan losses in each of the past five years of 2013 through 2017 or in the six months ended June 30, 2018, but has recognized credits to provisions in 2013 and 2015. The amounts of those credits were determined in recognition of the Banks levels of loans, nonperforming assets, charge-offs and repossessed assets. The loan loss credits were $600,000 in 2013 and $684,000 in 2015. The impact of these loan loss provisions and credits has been to provide PyraMax with a general valuation allowance of $3,092,000 at June 30, 2018, or 0.83 percent of gross loans and 104.43 percent of nonperforming loans.
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Income and Expense (cont.)
Total other income or noninterest income indicated a decrease in dollars from 2013 to 2017 and then a slight increase in the six months ended June 30, 2018. Noninterest income was $4,421,000 or 1.03 percent of assets in 2013 and a similar $4,155,000 in 2016 or 0.92 percent of assets. In the year ended December 31, 2017, noninterest income was a lower $2,892,000, representing 0.62 percent of assets. In the six months ended June 30, 2018, noninterest income was $1,483,000 or 0.61 percent of assets, on an annualized basis. Noninterest income consists primarily of gains and losses on the sale of loans, servicing fee income, service charges and other income.
The Banks general and administrative expenses or noninterest expenses decreased from $14.85 million for the year of 2013 to $14.01 million for the year ended December 31, 2016, representing a decrease of 5.6 percent, then increased to $16.59 million for the year ended December 31, 2017, or an 18.4 percent increase, and then decreased to $8.07 million or $16.14 million, annualized for the six months ended June 30, 2018. On a percent of assets basis, operating expenses decreased from 3.45 percent of average assets for the year ended December 31, 2013, to 3.11 percent for the year ended December 31, 2016, then increased to 3.54 percent for the year ended December 31, 2017, and then decreased to 3.34 percent for the six months ended June 30, 2018, annualized.
The net earnings position of PyraMax has indicated volatility from 2013 through 2017. The annual net income (loss) figures for the years of 2013, 2014, 2015, 2016 and 2017 were $1,288,000, $(3,188,000), $765,000, $1,254,000 and $1,660,000, respectively, and $(323,000) for the six months ended June 30, 2018, representing returns on average assets of 0.29 percent, (0.74) percent, 0.18 percent, 0.29 percent and 0.36 percent for fiscal years 2013, 2014, 2015, 2016 and 2017, respectively, and (0.14) percent for the six months ended June 30, 2018, annualized.
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Income and Expense (cont.)
Exhibit 7 provides the Banks normalized earnings or core earnings for the twelve months ended June 30, 2018. The Banks normalized earnings typically eliminate any nonrecurring income and expense items. There were two expense adjustments, resulting in the normalized income being a smaller loss than actual earnings (loss) for the twelve months ended June 30, 2018, and equal to a loss of $133,000. The core income adjustments were a reduction in provision for loan losses of $425,000 and a reduction in real estate owned losses of $234,000 with no tax credit.
The key performance indicators comprised of selected performance ratios, asset quality ratios and capital ratios are shown in Exhibit 8 to reflect the results of performance. The Banks return on average assets changed from 0.29 percent in 2013, to (0.74) percent in 2014, to 0.18 percent in 2015, to 0.29 percent in 2016, to 0.36 percent in 2017, and then to (0.14) percent in the six months ended June 30, 2018, with the lower earnings in 2014 due partially to the Banks higher noninterest expenses combined with lower noninterest income.
The Banks net interest rate spread decreased from 2.71 percent in 2013 to 2.70 percent in 2016, then decreased to 2.67 percent in 2017, and then decreased to 2.65 percent in the six months ended June 30, 2018. The Banks net interest margin indicated a somewhat similar trend, decreasing from 2.83 percent in 2013 to 2.81 percent in 2016, then decreased to 2.80 percent in 2017, and decreased to 2.79 percent in the six months ended June 30, 2018. PyraMaxs net interest rate spread decreased 1 basis point from 2013 to 2016, then decreased 3 basis points in 2017 and then increased 50 basis points in the first two quarters of 2018. The Banks net interest margin followed a similar overall trend, decreasing 2 basis points from 2013 to 2016, then decreasing 1 basis point from 2016 to 2017 and then decreasing 2 basis points in the first two quarters of 2018.
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Income and Expense (cont.)
The Banks return on average equity increased from 2013 to 2017, and then decreased in the first two quarters of 2018. The return on average equity increased from 3.17 percent in 2013, to 3.26 percent in 2016, then increased to 4.03 percent in 2017, and then decreased to (1.68) percent in the first two quarters of 2018, annualized.
PyraMaxs ratio of average interest-earning assets to interest-bearing liabilities increased modestly from 112.50 percent at December 31, 2013, to 116.80 percent at December 31, 2016, then decreased to 116.31 percent at December 31, 2017, and then decreased to 114.99 percent at June 30, 2018. The Banks overall increase in its ratio of interest-earning assets to interest-bearing liabilities is primarily the result of the Banks increase in its loan share.
Another key performance ratio reflecting efficiency of operation is the ratio of noninterest expenses to noninterest income plus net interest income referred to as the efficiency ratio. The industry norm is 56.1 percent for all thrifts and 71.3 percent for thrifts with assets of $100.0 million to $1.0 billion, with the lower the ratio indicating higher efficiency. The Bank has been characterized with a moderately lower level of efficiency historically reflected in its higher efficiency ratio, which decreased from 96.00 percent in 2013 to 91.79 percent in 2016, increased to 112.19 percent in 2017, and then decreased to 106.86 percent in the six months ended June 30, 2018.
Earnings performance can be affected by an institutions asset quality position. The ratio of nonperforming loans to total loans is a key indicator of asset quality. PyraMax witnessed a decrease in its nonperforming loans ratio from December 31, 2013, to June 30, 2018, and the ratio is modestly above the industry norm. Nonperforming loans, by definition, consist of loans delinquent 90 days or more, troubled debt restructurings that have not been performing for at least three months, and nonaccruing loans. PyraMaxs nonperforming loans consisted of nonaccrual loans with only $1,000 in loans accruing but past due in 2013, and no nonaccruing troubled debt restructured loans. The ratio of nonperforming loans to total loans was 0.80 percent at June 30, 2018, decreasing from 1.25 percent at December 31, 2017, and decreasing from 4.36 percent at December 31, 2013.
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Income and Expense (cont.)
Two other indicators of asset quality are the Banks ratios of allowance for loan losses to total loans and also to nonperforming loans. The Banks allowance for loan losses was 1.38 percent of loans at December 31, 2013, decreased to 0.95 percent at December 31, 2016, decreased to 0.93 percent of loans at December 31, 2017, and then decreased to 0.83 percent at June 30, 2018. As a percentage of nonperforming loans, PyraMaxs allowance for loan losses to nonperforming loans was 37.40 percent at December 31, 2013, a higher 100.43 percent at December 31, 2016, a higher 163.90 percent at December 31, 2017, and a higher 167.59 percent at June 30, 2018.
Exhibit 9 provides the changes in net interest income due to rate and volume changes for the fiscal year ended December 31, 2017, and for the six months ended June 30, 2018. For the year ended December 31, 2017, net interest income increased $829,345, due to an increase in interest income of $1,505,382, decreased by a $676,037 increase in interest expense. The increase in interest income was due to an increase due to rate of $436,303, accented by an increase due to volume of $1,069,079. The increase in interest expense was due to a $338,034 increase due to rate, accented by a $338,003 increase due to volume.
For the six months ended June 30, 2018, net interest income increased $150,908, due to an increase in interest income of $508,620, reduced by an increase in interest expense of $357,712 The increase in interest income was due to an increase due to volume of $496,774, accented by an increase due to rate of $11,846. The increase in interest expense was due to an increase due to volume of $127,472, accented by an increase due to rate of $230,240.
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YIELDS AND COSTS
The overview of yield and cost trends for the years ended December 31, 2015, 2016 and 2017 and for the six months ended June 30, 2018, and at June 30, 2018, can be seen in Exhibit 10, which offers a summary of key yields on interest-earning assets and costs of interest-bearing liabilities.
PyraMaxs weighted average yield on its loan portfolio increased 2 basis points from fiscal year 2015 to 2017, from 4.05 percent to 4.07 percent and then decreased 1 basis point to 4.06 percent for the six months ended June 30, 2018. The yield on securities available-for-sale increased from 2.16 percent to 2.27 percent from 2015 to 2017 or 11 basis points, and then decreased to 2.23 percent in the six months ended June 30, 2018. The yield on other interest-earning assets increased 83 basis points from 2015 to 2017, from 0.17 percent to 1.00 percent, and then decreased 40 basis points to 0.60 percent in the six months ended June 30, 2018. The combined weighted average yield on all interest-earning assets increased 2 basis points to 3.62 percent from fiscal year 2015 to 2017 and remained at 3.62 percent in the six months ended June 30, 2018, and then increased 9 basis points to 3.71 percent at June 30, 2018.
PyraMaxs weighted average cost of interest-bearing liabilities increased 15 basis points to 0.92 percent from fiscal year 2015 to 2017, which was more than the Banks 2 basis point increase in yield, resulting in a decrease in the Banks net interest rate spread of 13 basis points from 2.83 percent to 2.70 percent from 2015 to 2017. The Banks cost of interest-bearing liabilities then decreased 4 basis points to 0.88 percent in the six months ended June 30, 2018, which was less than the Banks zero basis point change in yield, resulting in an increase in the Banks net interest rate spread. The Banks interest rate spread increased 4 basis points in the six months ended June 30, 2018. The Banks net interest margin decreased from 2.94 percent in 2015 to 2.83 percent in fiscal year 2017, representing a decrease of 11 basis points and then increased to 2.86 percent in the six months ended June 30, 2018.
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Yields and Costs (cont.)
The Banks ratio of average interest-earning assets to interest-bearing liabilities was 115.78 percent for the year ended December 31, 2015, and was 116.80 percent for the year ended December 31, 2016, then decreased to 116.31 percent for the year ended December 31, 2017, and then decreased to 116.08 percent at June 30, 2018.
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INTEREST RATE SENSITIVITY
PyraMax has monitored its interest rate sensitivity position and focused on maintaining a reasonable level of interest rate risk exposure by maintaining higher shares of adjustable-rate residential mortgage loans, commercial real estate loans and multi-family loans and adjustable-rate home equity loans to offset its moderate share of fixed-rate residential mortgage loans. PyraMax recognizes the thrift industrys historically higher interest rate risk exposure, which caused a negative impact on earnings and economic value of equity in the past as a result of significant fluctuations in interest rates, specifically rising rates in the past. Such exposure was due to the disparate rate of maturity and/or repricing of assets relative to liabilities commonly referred to as an institutions gap. The larger an institutions gap, the greater the risk (interest rate risk) of earnings loss due to a decrease in net interest margin and a decrease in economic value of equity or portfolio loss. In response to the potential impact of interest rate volatility and negative earnings impact, many institutions have taken steps to reduce their gap position. This frequently results in a decline in the institutions net interest margin and overall earnings performance. PyraMax has responded to the interest rate sensitivity issue by monitoring its shares of adjustable-rate one to four family loans, commercial real estate loans and consumer loans.
The Bank measures its interest rate risk through the use of its economic value of equity (EVE) of the expected cash flows from interest-earning assets and interest-bearing liabilities and any off-balance sheets contracts. The EVE for the Bank is calculated on a quarterly basis by an outside firm, showing the Banks EVE to asset ratio, the dollar change in EVE, and the change in the EVE ratio for the Bank under rising and falling interest rates. Such changes in EVE ratio under changing rates are reflective of the Banks interest rate risk exposure.
There are numerous factors which have a measurable influence on interest rate sensitivity in addition to changing interest rates. Such key factors to consider when analyzing interest rate sensitivity include the loan payoff schedule, accelerated principal payments, sale of fixed-rate loans, deposit maturities, interest rate caps on adjustable-rate mortgage loans and deposit withdrawals.
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Interest Rate Sensitivity (cont.)
Exhibit 11 provides the Banks EVE levels and ratios as of June 30, 2018, based on the most recent calculations and reflects the changes in the Banks EVE levels under rising and declining interest rates.
The Banks change in its EVE level at June 30, 2018, based on a rise in interest rates of 100 basis points was an 8.2 percent decrease, representing a dollar decrease in equity value of $4,354,000. In contrast, based on a decline in interest rates of 100 basis points, the Banks EVE level was estimated to decrease 4.7 percent or $2,518,000 at June 30, 2018. The Banks exposure increases to a 16.7 percent decrease under a 200 basis point rise in rates, representing a dollar decrease in equity of $8,885,000. The Banks exposure is not reasonably measurable based on a 200 basis point decrease in interest rates, due to the currently low level of interest rates.
The Bank is aware of its interest rate risk exposure under rapidly rising rates and falling rates. Due to PyraMaxs recognition of the need to control its interest rate exposure, the Bank has been moderately active in the origination of adjustable-rate loans. The Bank plans to increase its lending activity in the future and continue to maintain a moderate share of adjustable-rate loans. The Bank will also continue to focus on strengthening its EVE ratio, recognizing the planned conversion and minority stock offering will strengthen the Banks equity level and EVE ratio, based on any change in interest rates.
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LENDING ACTIVITIES
PyraMax has focused its lending activity on the origination of conventional mortgage loans secured by one- to four-family dwellings, commercial real estate and multi-family loans, home equity loans, construction loans, other commercial business loans and consumer loans. Exhibit 12 provides a summary of PyraMaxs loan portfolio by loan type at December 31, 2013 through 2017, and at June 30, 2018.
The primary loan type for PyraMax has been commercial real estate loans, including multi-family loans, representing a strong 49.3 percent of the Banks gross loans as of June 30, 2018. This share of loans has seen a moderate increase from 36.6 percent at December 31, 2013. The second largest loan type as of June 30, 2018, was residential loans secured by one- to four-family dwellings, which comprised a moderate 29.0 percent of gross loans at June 30, 2018, compared to 36.0 percent as of December 31, 2013. The third largest loan type was home equity loans, which comprised a moderate 10.7 percent of gross loans at June 30, 2018, compared to a larger 17.1 percent at December 31, 2013. The fourth largest loan category was other loans, including commercial business loans, which represented 8.8 percent of gross loans at June 30, 2018, increasing from 5.6 percent at December 31, 2013. These four loan categories represented a strong 97.8 percent of gross loans at June 30, 2018, compared to a lesser 95.3 percent of gross loans at December 31, 2013.
The Bank had a minimal 0.9 percent of loans in construction loans at June 30, 2018, up from 0.3 at December 31, 2013. The Bank had a similar 0.7 percent of loans in land loans, down from 3.6 percent at December 31, 2013. The consumer loan category was the smallest loan category at June 30, 2018, and represented a minimal 0.6 percent of gross loans compared to 0.7 percent at December 31, 2013. Consumer loans were also the smallest loan category at December 31, 2013. The Banks consumer loans include savings account loans, automobile loans, and other secured and unsecured loans. The overall mix of loans has witnessed moderate changes from December 31, 2013, to June 30, 2018, with the Bank having decreased its share of one- to four-family loans, offset by an increase in its share of commercial real estate loans. Home equity loans have also decreased.
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Lending Activities (cont.)
The emphasis of PyraMaxs lending activity is the origination of commercial real estate loans, including multi-family loans and conventional mortgage loans secured by one- to four-family residences. Such properties are located primarily in Milwaukee County and to a lesser extent in the adjacent Waukesha and Ozaukee Counties. At June 30, 2018, 49.3 percent of PyraMaxs gross loans consisted of loans secured by commercial real estate and multi-family properties, both owner-occupied and nonowner-occupied, with 29.0 percent of loans secured by conventional mortgage loans.
The Bank offers several types of adjustable-rate mortgage loans (ARMs), with adjustment periods of three years, five years, seven years and ten years. The interest rates on ARMs are generally indexed to the weekly average yield on U.S. Treasury rate securities adjusted to a constant maturity of one year. ARMs have a maximum rate adjustment of 2.0 percent at each adjustment period and 6.0 percent for the life of the loan. Rate adjustments are computed by adding a stated margin to the index, the U.S. Treasury securities rate. The Bank normally retains all ARMs which it originates. The majority of ARMs have terms of up to 30 years, which is the maximum term offered, with some loans having terms of 15 and 20 years.
The Banks one- to four-family mortgage loans remain outstanding for shorter periods than their contractual terms, because borrowers have the right to refinance or prepay. These mortgage loans contain due on sale clauses which permit the Bank to accelerate the indebtedness of the loan upon transfer of ownership of the mortgage property.
The Banks other key mortgage loan product is a fixed-rate mortgage loan with PyraMaxs fixed-rate mortgage loans having terms of 10 years to 30 years. Fixed-rate mortgage loans have a maximum term of 30 years. The Banks fixed-rate mortgage loans normally conform to Fannie Mae underwriting standards. The Bank also originates conforming jumbo loans residential mortgage loans. The Bank normally retains its jumbo fixed-rate residential mortgage loans.
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Lending Activities (cont.)
The normal loan-to-value ratio for conventional mortgage loans to purchase or refinance one-to four-family dwellings generally does not exceed 80.0 percent at PyraMax, even though the Bank is permitted to make loans above 80.0 percent loan-to-value ratio. While the Bank does make loans above 80.0 percent of loan-to-value, the Bank requires private mortgage insurance for the amount in excess of the 80.0 percent loan-to-value ratio for fixed-rate loans and adjustable-rate loans. Mortgage loans originated by the Bank include due-on-sale clauses enabling the Bank to adjust rates on fixed-rate loans in the event the borrower transfers ownership. The Bank also requires an escrow account for insurance and taxes on loans with a loan-to-value ratio in excess of 80.0 percent.
PyraMax has also been an originator of adjustable-rate and fixed-rate commercial real estate loans and multi-family loans in the past and will continue to make multi-family and commercial real estate loans. The adjustable-rate loans have rate caps of 2.0 percent at each adjustment period and 6.0 percent over the life of the loan. The Bank had a total of $182.7 million in commercial real estate loans, including multi-family loans at June 30, 2018, or a combined 49.3 percent of gross loans, compared to a lesser 36.6 percent of gross loans at December 31, 2013.
The major portion of commercial real estate and multi-family loans are secured by apartment buildings, industrial buildings, warehouses, small retail establishments, restaurants, office buildings, and other owner-occupied properties used for business. Most of the multi-family and commercial real estate loans are fully amortizing with a term of up to 30 years, with rates on the adjustable-rate loans adjusting at the end of the initial term of five, seven or ten years. The maximum loan-to-value ratio is normally 80.0 percent for multi-family loans and 80.0 percent for commercial real estate loans.
The Bank also originates construction and land development loans. The Bank had $6.0 million or 1.6 percent of gross loans in construction and land development loans at June 30, 2018. The maximum loan-to-value ratio is 80.0 percent of the contract price or completed appraised value, whichever is less.
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Lending Activities (cont.)
PyraMax is also an originator of commercial business loans, which totaled $2.5 million and represented a modest 8.8 percent of loans at June 30, 2018. The Bank had $15.6 million in commercial business loans at December 31, 2013, or 15.6 percent of loans. These loans are normally floating-rate and indexed to the Wall Street Journal prime rate or fixed-rate with a term of two years or term loans with terms of three to seven years.
PyraMax also offers consumer loans, with these loans totaling only $2.1 million at June 30, 2018, and representing 1.3 percent of gross loans. Consumer loans primarily include automobile loans, share loans, and other secured and unsecured loans. The Bank has also been active in home equity loans or lines of credit, which totaled $39.8 million or 10.7 percent of gross loans at June 30, 2018. The interest rate for home equity lines of credit is tied to the prevailing prime interest rate.
Exhibit 13 provides a loan maturity schedule and breakdown and a summary of PyraMaxs fixed- and adjustable-rate loans, indicating a majority of fixed-rate loans. At June 30, 2018, 72.5 percent of the Banks loans due after June 30, 2018, were fixed-rate and 27.5 percent were adjustable-rate. At June 30, 2018, the Bank had 54.7 percent of its loans due on or before June 30, 2023, or in five years or less. The Bank had a lesser 45.3 percent of its loans with a maturity of more than five years.
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NONPERFORMING ASSETS
PyraMax understands asset quality risk and the direct relationship of such risk to delinquent loans and nonperforming assets, including real estate owned. The quality of assets has been a key concern to financial institutions throughout many regions of the country. A number of financial institutions have been confronted with higher levels of nonperforming assets over the past few years and have been forced to recognize significant losses, setting aside major valuation allowances.
A sharp increase in nonperforming assets has often been related to specific regions of the country and has frequently been associated with higher risk loans, including commercial real estate loans and multi-family loans and nonowner-occupied single-family loans. PyraMax has a modestly higher level of nonperforming assets, with nonperforming assets decreasing noticeably since 2013.
Exhibit 14 provides a summary of PyraMaxs delinquent loans at December 31, 2015, 2016, and 2017, and at June 30, 2018, indicating an overall decrease in the dollar amount of delinquent loans from December 31, 2015, to June 30, 2018, but an increase in loans delinquent 90 days or more. The Bank had $1,114,000 in loans delinquent 30 to 89 days at June 30, 2018. Loans delinquent 90 days or more totaled $1,846,000 at June 30, 2018, with these two categories representing 0.80 percent of gross loans, with most of them one- to four-family real estate loans. At December 31, 2015, delinquent loans of 30 to 89 days totaled $3,424,000 or 1.08 percent of gross loans and loans delinquent 90 days or more totaled $1,347,000 or 0.43 percent of gross loans for a combined total of $4,771,000 and a higher share of 1.51 percent of gross loans, compared to a lower $2,960,000 and a lower 0.80 percent of gross loans at June 30, 2018.
It is normal procedure for PyraMaxs board to review loans delinquent 90 days or more on a monthly basis, to assess their collectability and possibly commence foreclosure proceedings. When a loan is delinquent 15 days, the Bank sends a late notice to the borrower and also contact the borrower by a phone call. If a loan payment becomes 30 days past due, an additional late notice is mailed and a loan-specific letter is written by a collection representative. After 90 days delinquency, a demand letter is sent, and the loan is referred to foreclosure. The foreclosure process generally would begin when a loan becomes 120 days delinquent.
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Nonperforming Assets (cont.)
Exhibit 15 provides a summary of PyraMaxs nonperforming assets at December 31, 2013, 2014, 2015, 2016 and 2017, and at June 30, 2018. Nonperforming assets, by definition, include loans 90 days or more past due, nonaccruing loans, troubled debt restructurings that have not performed, and repossessed assets. The Bank carried a lower dollar level of nonperforming assets at June 30, 2018, relative to December 31, 2013. PyraMaxs level of nonperforming assets was $12,642,000 at December 31, 2013, and a lower $1,845,000 at June 30, 2018, which represented 2.94 percent of assets in 2013 and 0.38 percent of assets at June 30, 2018. The Banks nonperforming assets included $10,737,000 in nonaccrual loans, $1,000 in loans 90 days or more past due and $1,905,000 in real estate owned for a total of $12,642,000 at December 31, 2013 or 3.68 percent of assets. At June 30, 2018, nonperforming assets were a lower $1,845,000 or a lower 0.38 percent of assets and included $1,845,000 in nonaccrual loans, no real estate owned, and no loans 90 days or more past due.
PyraMaxs levels of nonperforming assets were lower than its level of classified assets at June 30, 2018, and higher than its level of classified assets at December 31, 2013. The Banks ratios of classified assets to assets, excluding special mention assets, were 1.97 percent of assets at December 31, 2015, and a lower 0.46 percent at June 30, 2018 (reference Exhibit 16). The Banks classified assets consisted of $2,077,000 in substandard assets, with $125,000 in assets classified as doubtful and no assets classified as loss at June 30, 2018. The Bank had $134,000 in assets classified as substandard, $239,000 in assets classified as doubtful, and no assets classified as loss at December 31, 2015.
Exhibit 17 shows PyraMaxs allowance for loan losses at December 31, 2013, 2014, 2015, 2016 and 2017, and at June 30, 2018, indicating the activity and the resultant balances. PyraMax has witnessed a moderate decrease in its balance of allowance for loan losses from $3,834,000 at December 31, 2013, to $3,092,000 at June 30, 2018, in response to its ability to reduce nonperforming loans and nonperforming assets. The Bank had no provisions for loan losses in 2013, 2014, 2015, 2016, 2017 or in the six months ended June 30, 2018, but had credits of $600,000 in 2013 and $684,000 in 2015.
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Nonperforming Assets (cont.)
The Bank had total charge-offs of $1,783,000 in 2013, $432,000 in 2014, $263,000 in 2015, $316,000 in 2016, $37,000 in 2017 and $34,000 in the six months ended June 30, 2018, with total recoveries of $843,000 in 2013, $339,000 in 2014, $293,000 in 2015, $237,000 in 2016, $122,000 in 2017, and $33,000 in the six months ended June 30, 2018. The Banks ratio of allowance for loan losses to gross loans was 1.38 percent at December 31, 2013, a lower 0.93 percent at December 31, 2017, and a lower 0.83 percent at June 30, 2018. Allowance for loan losses to nonperforming loans was 31.63 percent at December 31, 2013, and a higher 74.02 percent at December 31, 2017, and a higher 104.43 percent at June 30, 2018.
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INVESTMENTS
The investment and securities portfolio, including certificates of deposit, has been comprised of asset-backed securities, municipal securities, interest-bearing deposits, mortgage-backed securities, corporate bonds and corporate collateralized mortgage obligations. Exhibit 18 provides a summary of PyraMaxs investment portfolio at December 31, 2015, 2016 and 2017, and at June 30, 2018, excluding FHLB stock. Investment securities totaled $69.3 million at June 30, 2018, based on fair value, compared to $73.0 million at December 31, 2015. The Bank had $41.4 million in mortgage-backed securities at December 31, 2015, and $52.9 million at June 30, 2018, representing 76.4 percent of investments. Mortgage-backed securities represented the largest category of the Banks investments at June 30, 2018, followed by municipal securities. In 2015, mortgage-backed securities was also the largest investment category followed by municipal securities.
The second key component of cash and investments at June 30, 2018, was municipal securities, totaling $11.4 million and representing 16.5 percent of total investments, excluding FHLB stock, compared to $20.1 million and a larger 27.6 percent of total investments at December 31, 2015. The Bank had $818,000 in FHLB stock at June 30, 2018. The weighted average yield on investment securities was 2.37 percent for the six months ended June 30, 2018, and a lesser 2.16 percent in 2015.
DEPOSIT ACTIVITIES
The mix of total deposits by amount at December 31, 2015, 2016 and 2017, and at June 30, 2018, is provided in Exhibit 19. There has been a moderate change in total deposits and a modest change in the deposit mix during this period. Total deposits have increased from $353.0 million at December 31, 2015, to $404.6 million at June 30, 2018, representing an increase of $51.6 million or 14.6 percent. Certificates of deposit have increased from $164.1 million at December 31, 2015, to $198.7 million at June 30, 2018, representing an increase of $34.6 million or 21.1 percent, while savings, transaction and MMDA accounts have increased $16.9 million from $188.9 million at December 31, 2015, to $205.8 million at June 30, 2018, or 8.9 percent.
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Deposit Activities (cont.)
Exhibit 20 provides a breakdown of the Banks certificates of deposits in amounts of $100,000 or more by maturity at December 31, 2017, and at June 30, 2018. The largest category of these certificates based on maturity is certificates with a maturity of over one year to three years at June 30, 2018, which represented a strong 38.5 percent of these certificates followed by certificates with a maturity of three months or less, which represented a moderate 26.3 percent of certificates. The largest category of certificates at December 31, 2017, was certificates with a maturity of six months to twelve months, which represented a strong 47.5 percent of these certificates followed by certificates with a maturity of over twelve months, which represented a strong 38.1 percent of certificates.
BORROWINGS
PyraMax has made moderate use of FHLB advances (reference Exhibit 21) in each of the years ended December 31, 2016 and 2017, and in the six months ended June 30, 2018. The Bank had total FHLB advances of $27.7 million at June 30, 2018, with a weighted cost of 1.53 percent during the period and a balance of a larger $48.2 million at December 31, 2016, with a weighted cost of a higher 1.21 percent during the period.
SUBSIDIARIES
PyraMax has no subsidiaries.
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OFFICE PROPERTIES
PyraMax had nine offices at June 30, 2018, its main office in Greenfield and eight branches in Franklin, Grafton, two in Milwaukee, Mukwonago, South Milwaukee, Waukesha and West Ellis. The Bank has entered into an agreement to sell its Mitchell Street branch in Milwaukee, which is expected to close in the fourth quarter of 2018. The Bank owns its Mitchell Street branch. The Bank owns seven of its offices and leases two offices (reference Exhibit 22). At June 30, 2018, the Banks total investment in fixed assets, based on depreciated cost, was $7.6 million or 1.57 percent of assets.
MANAGEMENT
Mr. Richard Hurd was appointed president and chief executive officer of PyraMax Bank in 2007. Prior to that, Mr. Hurd was the chief operating officer from 2004 to 2007. Mr. Hurd has been a board member since 2004. He joined PyraMax Bank in 2001. Prior to joining PyraMax Bank, Mr. Hurd had thirty years of banking experience at First Wisconsin National Bank, Marine Bank and Bank One Corporation. Mr. Hurds banking experience and knowledge of financial markets enhance the breadth of experience of the Banks board of directors.
Ms. Monica Baker was appointed senior vice president/chief brand officer in January 2014. Ms. Baker began with PyraMax Bank in 1993 as the vice president of marketing/human resources/savings. In August 2000, she was promoted to senior vice president of marketing/human resources and then in 2010 promoted to senior vice president of marketing/human resources/retail lending. Ms. Baker has been on the board of directors since 2006. Prior to being employed with PyraMax Bank, Ms. Baker was the human resources officer at Maritime Savings Bank. She brings over 34 years of banking experience, focused on retail banking, retail lending, human resources and marketing. Ms. Bakers extensive experience in retail banking, retail lending, human resources and marketing are valuable to our board of directors in assessing the performance of PyraMax Bank.
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Management (cont.)
Mr. Richard J. Krier joined PyraMax Bank in April 2011 as the chief financial officer. Prior to that, Mr. Krier served as the chief financial officer of Partnership Community Bancshares from 2008 until 2011. Mr. Krier has over 30 years of broad-based banking experience in the areas of financial management, operations, performance measurement and decision support. Mr. Krier is also a certified public accountant.
Mr. Chuck Mauer joined PyraMax Bank in June 2010 as the Banks chief credit officer. He is responsible for the overall management of the Banks credit administration department, including loan underwriting, loan review, lending support, loan policies, procedures and processes to ensure the overall quality of the Banks loan portfolio. Mr. Mauer has over 30 years of commercial, consumer and mortgage lending as well as credit administration experience. Prior to working at PyraMax Bank, he was a first vice president of credit administration at Ozaukee Bank where he also managed client relationships for over 20 years. In 2007, Ozaukee Bank was acquired by BMO Harris Bank. Mr. Mauer remained with BMO Harris Bank for three more years, serving as senior vice president-concurrence officer.
Mr. Thomas K. Peterson was appointed senior vice president, chief lending officer in January 2017. Prior to being employed by PyraMax Bank, Mr. Peterson was the commercial business segment leader for the Milwaukee-Madison markets for Associated Bank. Mr. Peterson has over 36 years of banking experience, including various commercial banking roles at Ozaukee Bank, BMO Harris Bank, and Associated Bank.
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II. | DESCRIPTION OF PRIMARY MARKET AREA |
PyraMaxs market area is focused on Milwaukee County along with the adjacent Ozaukee and Waukesha Counties in Wisconsin. Exhibit 24 shows the trends in population, households and income for Milwaukee County, Ozaukee County and Waukesha County, Wisconsin and the United States. Milwaukee Countys population increased slightly by 0.8 percent from 2000 to 2010, Ozaukee Countys population increased by 5.0 percent and Waukesha Countys population increased by 8.1 percent, while Wisconsins and the United States population levels increased by 6.0 percent and 9.7 percent, respectively, during the same time period. Through 2020, population is projected to increase by 0.4 percent, 4.5 percent, 5.0 percent, 3.5 percent and 7.6 percent in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States respectively.
More important is the trend in households. Milwaukee County experienced a modest 1.6 percent increase in households from 2000 through 2010, compared to increases of 10.9 percent in Ozaukee County, 12.9 percent in Waukesha County, 9.4 percent in Wisconsin and 10.7 percent in the United States. All areas are projected to increase in number of households from 2010 through 2020, by a slight 1.3 percent in Milwaukee County, by 4.6 percent in Ozaukee County, by 4.7 percent in Warren County, as well as Wisconsin and the United States by 3.7 percent and 7.5 percent, respectively.
The Milwaukee County had the lowest per capita income level in both 2000 and 2010 while Ozaukee County maintained the highest per capita income level in both years. Per capita income increased in all areas from 2000 to 2010. Milwaukee Countys per capita income increased to $24,254, Ozaukee Countys per capital income level increased to $42,180 and Waukesha Countys per capita income level increased to $37,282. Wisconsins per capita income increased to $27,192 and the United States increased to $26,059. In 2000, median household income in the three counties were a lower $38,100 in Milwaukee County, higher levels of $62,745 in Ozaukee County and $62,839 in Waukesha County, with Wisconsin at $43,791 and the United States with a median household income of $41,994. Median household
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Description of Primary Market Area (cont.)
income increased from 2000 to 2010 by 14.4 percent, 20.9 percent, 20.4 percent, 19.6 percent and 19.2 percent to $43,599, $75,854, $75,689, $52,374 and $50,046 in Milwaukee County, Ozaukee County, Waukesha County, Wisconsin and the United States, respectively. All areas are also projected to show increases in their median household income levels from 2010 through 2020. The median household income levels in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States are projected to increase by 14.0 percent, 14.6 percent, 11.5 percent, 9.9 percent and 23.1 percent, respectively, to $49,722, $86,937, $84,386, $57,579 and $61,618, respectively, from 2010 to 2020. Milwaukee County is characterized with a noticeably lower historical and projected median household income level relative to all other regions.
Exhibit 25 provides a summary of key housing data for Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States. In 2000, Milwaukee County had the lowest rate of owner-occupancy at 52.6 percent, lower than Ozaukee County at 76.3 percent, Waukesha County at 76.4 percent, Wisconsin at 68.4 percent and the United States at 66.2 percent. As a result, Milwaukee County supported a higher rate of renter-occupied housing of 47.4 percent, compared to 23.7 percent in Ozaukee County, 23.6 percent Waukesha County, 31.6 percent in Wisconsin and 33.8 percent in the United States. In 2010, owner-occupied housing decreased slightly in Milwaukee County to 51.3 percent, increased slightly in Ozaukee County to 76.7 percent, increased slightly in Waukesha County to 76.8 percent, decreased in Wisconsin to 68.1 percent and in the United States to 65.4 percent. Conversely, the renter-occupied rates increased slightly in Milwaukee County to 48.7 percent, decreased slightly in Ozaukee County to 23.3 percent, in Wisconsin to 31.9 percent and in the United States to 34.6 percent. Renter-occupied percentages decreased slightly in Waukesha County to 23.2 percent.
Milwaukee Countys 2000 median housing value was $103,200, lower than all other areas median housing values. The other 2000 median housing values were $177,300 in Ozaukee County, $170,400 in Waukesha County, $112,200 in Wisconsin with the United States median housing value at $119,600. The 2000 median rent in Milwaukee County was $555,
31
Description of Primary Market Area (cont.)
which was lower than Ozaukee County at $642, Waukesha County at $726 and the United States at $602, with Wisconsins median rent level at the lowest level of $540. In 2010, median housing values had increased in Milwaukee County to $162,900, in Ozaukee to $255,600, in Waukesha County to $257,700, in Wisconsin to $169,000 and in the United States to $186,200 with Milwaukee County continuing to show the lowest median housing value. The 2010 median rent levels were $786, $819, $906, $749 and $871, in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States, respectively.
In 2000, the major source of employment for all areas by industry group, based on share of employment, was the services industry. The services industry was responsible for the majority of employment in all three counties, Wisconsin and the United States with 47.6 percent, 43.1 percent, 40.6 percent, 41.5 percent and 46.7 percent of jobs (reference Exhibit 26). The manufacturing industry was the second major employer in Milwaukee, Ozaukee and Waukesha Counties and Wisconsin at 18.5 percent, 23.7 percent, 21.2 percent and 22.2 percent but was the third largest employer in the United States at 14.1 percent The wholesale/retail trade group was the third major overall employer in Milwaukee, Ozaukee and Waukesha Counties and Wisconsin at 13.6 percent, 14.5 percent, 16.6 percent, 14.8 percent, and the wholesale/retail trade group was the second major overall employer in the United States with 15.3 percent of employment. The agriculture/mining group, construction group, transportation/utilities, information and finance/insurance/real estate group combined to provide 20.3 percent of employment in Milwaukee County, 19.0 percent of employment in Ozaukee County, 21.6 percent of employment in Waukesha County, 21.5 percent of employment in Wisconsin and 23.9 percent in the United States.
In 2010, the services industry, manufacturing industry and wholesale/retail trade industry provided the first, second and third highest levels of employment, respectively, for Milwaukee, Ozaukee and Waukesha Counties and Wisconsin. In Milwaukee, Ozaukee and Waukesha Counties and Wisconsin the manufacturing sector remained the second higher employer with the wholesale/retail industry third. The services industry accounted for 54.1 percent, 49.1 percent,
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Description of Primary Market Area (cont.)
45.5 percent, 46.8 percent and 53.2 percent in Milwaukee County, Ozaukee County, Waukesha County, Wisconsin and the United States, respectively. The manufacturing trade industry provided for 15.0 percent, 23.7 percent, 18.2 percent, 18.4 percent and 10.4 percent of employment in Milwaukee County, Ozaukee County, Waukesha County, Wisconsin and the United States, respectively. The wholesale/retail trade group provided 12.9 percent, 14.5 percent, 15.8 percent, 14.2 percent, and 14.5 percent of employment in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States, respectively. In the 2010 Census, the agriculture/mining, construction, transportation/utilities, information, and finance/insurance/real estate sectors accounted for 18.3 percent, 18.8, 20.5 percent, 20.6 percent and 21.9 percent in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States, respectively.
Some of the largest employers in Milwaukee, Ozaukee and Waukesha Counties are listed below.
Employer |
Employees |
Product/Service | ||
(Waukesha County) | ||||
Anthem Blue Cross Blue Shield | 2,000 | Insurance | ||
Arandall Corp. | 1,000 | Printing | ||
Community Memorial Hospital | 1,000 + | Healthcare | ||
Cooper Power Systems | 2,200 | Energy | ||
Fiserv, Inc. | 1,000+ | Data Processing | ||
GE Healthcare Bio-Sciences Corp | 6,000 | Diagnosing Systems | ||
Generac Holding | 3,800 | Manufacturing | ||
Harley Davidson Motor Co. | 2,700 | Motorcycles/Accessories | ||
Husco International, Inc. | 530 | Manufacturing | ||
Kohls | 7,800 | Retail Sales | ||
MetalTek International | 500 | Manufacturing | ||
Milwaukee Electric Tool Corp. | 600 | Manufacturing | ||
ProHealth Care | 4,800 | Healthcare | ||
Quad/Graphics Inc. | 7,500 | Printing/Marketing | ||
Roundys | 2,857 | Supermarkets | ||
Target Corp. | 600 | Distribution | ||
(Ozaukee County) | ||||
Allen Edmonds Corp. | 400 | Manufacturing Mens Footwear | ||
Aurora Medical Cntr. | 726 | Healthcare | ||
Charter Steel | 565 | Manufacturing | ||
Columbia-St. Marys | 500-999 | Healthcare | ||
Concordia University | 500-999 | Education | ||
Doral Dental USA | 250-499 | Dental Insurance Carrier | ||
HP Performance Systems | 250-499 | Manufacturing Brake Systems |
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Description of Primary Market Area (cont.)
(Ozaukee County contd.) | ||||
Kleen Test Products | 250-499 | Sanitary Wiping Cloths | ||
Leeson Electric Corp. | 600 | Mfg./Distrib. Electric Motors | ||
Legett & Platt Inc. | 500-999 | Aluminum die-casting | ||
Rockwell Automation | 5,000 | Mgr. Automation Systems & Equipment | ||
Telsmith Inc. | 250-499 | Rock Crushing Equipment | ||
(Milwaukee County) | ||||
AT & T Wisconsin | 3,500 | Communications | ||
Aurora Health Care | 32,000 | Healthcare | ||
BMO Harris | 3,400 | Financial services | ||
Briggs & Stratton | 1,358 | Manufacturing small engines | ||
Columbia St. Marys | 4,500 | Healthcare | ||
FIS | 2,800 | Financial data | ||
Froedtest Health | 10,900 | Healthcare | ||
Medical College of Wisconsin | 5,300 | Medical school | ||
Northwestern Mutual | 5,585 | Insurance | ||
Potawatomi Bingo Casino | 3,000 | Entertainment | ||
Rockwell Automation | 1,909 | Power, controls & information technology | ||
SC Johnson | 2,200 | Home products, pest control | ||
We Energies | 4,300 | Electricity, gas & steam utility | ||
Wheaton Franciscan Healthcare | 11,000 | Healthcare |
The unemployment rate is another key economic indicator. Exhibit 27 shows the unemployment rates in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States in 2014 through May of 2018. Milwaukee Countys unemployment rates have been higher than the state unemployment rates, while Ozaukee and Waukesha Counties rates have been lower than both state and national rates. In 2014, Milwaukee County had an unemployment rate of 6.9 percent, compared to unemployment rates of 4.2 percent in Ozaukee County, 4.4 percent in Waukesha County, 5.4 percent in Wisconsin and 6.2 percent in the United States. In 2015, all areas decreased in unemployment to 5.7 percent, 3.7 percent, 3.8 percent, 4.5 percent and 5.3 percent in Milwaukee, Ozaukee and Waukesha Counties, Wisconsin and the United States, respectively. In 2016, all areas unemployment rates again decreased to 5.0 percent, 3.3 percent, 3.4 percent, 4.0 percent and 4.9 percent in Milwaukee, Ozaukee and Waukesha, Counties, Wisconsin and the United States, respectively. In 2017, Milwaukee County, Ozaukee County, Waukesha County, Wisconsin and the United States had decreases in unemployment to 4.0 percent, 2.8 percent, 2.9 percent, 3.3 percent and 4.4 percent, respectively. Through May of 2018, all areas again had decreases in unemployment rates to 3.2 percent in Milwaukee County, to 2.3 percent in Ozaukee County, to 2.4 percent in Waukesha County, and to 2.6 percent and 3.6 percent in Wisconsin and the United States, respectively.
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Description of Primary Market Area (cont.)
Exhibit 28 provides deposit data for banks and thrifts in Milwaukee, Ozaukee and Waukesha Counties in which the Bank has its offices. PyraMaxs deposit base in Milwaukee County was approximately $277.0 million or a 10.5 percent share of the approximately $2.6 billion total thrift deposits and a 0.5 percent share of the total deposits, which were approximately $53.4 billion as of June 30, 2017. PyraMaxs deposit base in Ozaukee County was approximately $32.0 million or a 16.0 percent share of the $200.5 million total thrifts deposits and a 1.3 percent share of total deposits, which were approximately $2.5 billion as of June 30, 2017. PyraMaxs deposit base in Waukesha County was approximately $74.5 million or a 4.8 percent share of the $1.5 billion total thrift deposits and a 0.6 percent share of the total deposits, which were approximately $12.0 billion as of June 30, 2017. The total market area is dominated by banks, with bank deposits accounting for approximately 93.5 percent of deposits at June 30, 2017.
Exhibit 29 provides interest rate data for each quarter for the years 2014 through the second quarter of 2018. The interest rates tracked are the Prime Rate, as well as 90-Day, One-Year and Thirty-Year Treasury Bills. Short term interest rates were stable in 2014, increased modestly in 2015 and continued to rise in 2016, 2017 and in the first two quarters of 2018, with 30-year Treasury notes decreasing in 2014, then rising in 2015, stable in 2016, decreasing in 2017 and rising in the first two quarters of 2018.
SUMMARY
In summary, population increased minimally in Milwaukee County from 2000 to 2010, and the number of households also increased minimally. Ozaukee Countys increase in population and households was higher than that of Milwaukee County but lower than that of Waukesha County from 2000 to 2010. The 2010 per capita and median household income levels in Milwaukee County were below those of Waukesha and Ozaukee Counties and below state and
35
Description of Primary Market Area (cont.)
national levels. Also, Milwaukee Countys unemployment rates have been above national rates. According to the 2010 Census, median housing values in Milwaukee County were below both the state and the national median housing values, while median housing values in Waukesha and Ozaukee Counties were above the state median housing value.
The Bank holds deposits of approximately 8.8 percent of all thrift deposits in the three-county market area as of June 30, 2017, representing a minimal 0.6 percent share of the total deposit base of approximately $67.9 billion.
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III. | COMPARABLE GROUP SELECTION |
Introduction
Integral to the valuation of the Corporation is the selection of an appropriate group of publicly traded thrift institutions, hereinafter referred to as the comparable group. This section identifies the comparable group and describes each parameter used in the selection of each institution in the group, resulting in a comparable group based on such specific and detailed parameters, current financials and recent trading prices. The various characteristics of the selected comparable group provide the primary basis for making the necessary adjustments to the Corporations pro forma value relative to the comparable group. There is also a recognition and consideration of financial comparisons with all publicly traded, FDIC-insured thrifts in the United States and all publicly traded, FDIC-insured thrifts in the Midwest region and in Wisconsin.
Exhibits 30 and 31 present Share Data and Pricing Ratios and Key Financial Data and Ratios, respectively, both individually and in aggregate, for the universe of 122 publicly traded, FDIC-insured thrifts in the United States (all thrifts), and mutual holding companies, used in the selection of the comparable group and other financial comparisons. Exhibits 30 and 31 also subclassify all thrifts by region, including the 39 publicly traded Midwest thrifts (Midwest thrifts) and the 4 publicly traded thrifts in Wisconsin Wisconsin thrifts), and by trading exchange.
The selection of the comparable group was based on the establishment of both general and specific parameters using financial, operating and asset quality characteristics of the Corporation as determinants for defining those parameters. The determination of parameters was also based on the uniqueness of each parameter as a normal indicator of a thrift institutions operating philosophy and perspective. The parameters established and defined are considered to be both reasonable and reflective of the Corporations basic operation.
37
Introduction (cont.)
The general parameter requirements for the selection of the peer group candidates included a maximum asset size limit of $950 million, a trading exchange requirement that each candidate be traded on one of the two major stock exchanges, the New York Stock Exchange or the NASDAQ, a geographic parameter that eliminates potential candidates located in the Southwest and West, a merger and acquisition parameter that eliminates any potential candidate that is involved as a seller in a merger and acquisition transaction, and a recent conversion parameter that eliminates any institution that has not been converted from mutual to stock for at least four quarters or prior to June 30, 2018. Due to the general parameter requirement related to trading on NASDAQ or one of the other two major stock exchanges, the size of the peer group institutions results in larger institutions.
Inasmuch as the comparable group must consist of at least ten institutions, the parameters relating to asset size and geographic location have been expanded as necessary in order to fulfill this requirement.
Due to limited availability, there was only one mutual holding company included as a potential comparable group candidate.
GENERAL PARAMETERS
Merger/Acquisition
The comparable group will not include any institution that is a proposed seller in a merger or acquisition as of August 7, 2018, 2018. There are no pending merger/acquisition transactions involving thrift institutions that were potential comparable group candidates in the Corporations city, county or market area as indicated in Exhibit 33.
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Trading Exchange
It is necessary that each institution in the comparable group be listed on one of the three major stock exchanges, the New York Stock Exchange or the National Association of Securities Dealers Automated Quotation System (NASDAQ). Such a listing indicates that an institutions stock has demonstrated trading activity and is responsive to normal market conditions, which are requirements for listing. Of the 122 publicly traded, FDIC-insured savings institutions, 3 are traded on the New York Stock Exchange and 64 are traded on NASDAQ. There were an additional 20 traded over the counter and 35 institutions are listed in the Pink Sheets, but they were not considered for the comparable group selection.
IPO Date
Another general parameter for the selection of the comparable group is the initial public offering (IPO) date, which must be at least four quarterly periods prior to June 30, 2018, in order to insure at least four consecutive quarters of reported data as a publicly traded institution. The resulting parameter is a required IPO of March 31, 2017, or earlier.
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Geographic Location
The geographic location of an institution is a key parameter due to the impact of various economic and thrift industry conditions on the performance and trading prices of thrift institution stocks. Although geographic location and asset size are the two parameters that have been developed incrementally to fulfill the comparable group requirements, the geographic location parameter has nevertheless eliminated regions of the United States distant to the Corporation, including the Southwest and West regions.
The geographic location parameter consists of the Midwest, North Central, Southeast and Northeast regions for a total of fifteen states. To extend the geographic parameter beyond those states could result in the selection of similar thrift institutions with regard to financial conditions and operating characteristics, but with different pricing ratios due to their geographic regions. The result could then be an unrepresentative comparable group with regard to price relative to the parameters and, therefore, an inaccurate value.
Asset Size
Asset size was another key parameter used in the selection of the comparable group. The total asset size for any potential comparable group institution was $950 million or less, due to the general similarity of asset mix and operating strategies of institutions within this asset range, compared to the Corporation, with assets of approximately $483 million. Such an asset size parameter was necessary to obtain an appropriate comparable group of at least ten institutions.
In connection with asset size, we did not consider the number of offices or branches in selecting or eliminating candidates, since that characteristic is directly related to operating expenses, which are recognized as an operating performance parameter.
40
SUMMARY
Exhibits 34 and 35 show the 28 institutions considered as comparable group candidates after applying the general financial, geographic and merger/acquisition parameters, with the outlined institutions being those ultimately selected for the comparable group using the balance sheet, performance and asset quality parameters established in this section along with being publicly traded on one of the three major exchanges..
41
BALANCE SHEET PARAMETERS
Introduction
The balance sheet parameters focused on seven balance sheet ratios as determinants for selecting a comparable group, as presented in Exhibit 34. The balance sheet ratios consist of the following:
1. Cash and investments to assets
2. Mortgage-backed securities to assets
3. One- to four-family loans to assets
4. Total net loans to assets
5. Total net loans and mortgage-backed securities to assets
6. Borrowed funds to assets
7. Equity to assets
The parameters enable the identification and elimination of thrift institutions that are distinctly and functionally different from the Corporation with regard to asset mix. The balance sheet parameters also distinguish institutions with a significantly different capital position from the Corporation. The ratio of deposits to assets was not used as a parameter as it is directly related to and affected by an institutions equity and borrowed funds ratios, which are separate parameters.
Cash and Investments to Assets
The Banks ratio of cash and investments to assets, excluding mortgage-backed securities, was 5.82 percent at June 30, 2018, and reflects the Corporations modestly lower share of investments, lower than the national and regional averages of 11.7 percent and 13.8 percent, respectively. The Banks investments have consisted of asset-backed securities, municipal securities, corporate bonds and interest-bearing deposits. For its recent two years ended December 31, 2016, and December 31, 2017, the Corporations average ratio of cash and investments to assets was a higher 8.58 percent, ranging from a high of 8.70 percent in 2017 to a low of 7.45 percent at June 30, 2018.
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Cash and Investments to Assets (cont.)
The parameter range for cash and investments is has been defined as 20.0 percent or less of assets, with a midpoint of 10.0 percent.
Mortgage-Backed Securities to Assets
At June 30, 2018, the Corporations ratio of mortgage-backed securities to assets was 10.77 percent, modestly higher than the national average of 7.1 percent and the regional average of 7.6 percent for publicly traded thrifts.
Inasmuch as many institutions purchase mortgage-backed securities as an alternative to both lending, relative to cyclical loan demand and prevailing interest rates, and other investment vehicles, this parameter is also fairly broad at 16.0 percent or less of assets and a midpoint of 8.0 percent.
One- to Four-Family Loans to Assets
The Corporations lending activity is focused on the origination of residential mortgage loans secured by one- to four-family dwellings. One- to four-family loans, including construction loans and excluding home equity loans, represented 25.8 percent of the Corporations assets at June 30, 2018, which is higher than its ratio of 24.5 percent at December 31, 2017, and similar to its ratio of 26.0 percent at December 31, 2016. The parameter for this characteristic is 72.00 percent of assets or less in one- to four-family loans with a midpoint of 36.00 percent.
43
Total Net Loans to Assets
At June 30, 2018, the Corporation had a 76.50 percent ratio of total net loans to assets and a lower two fiscal year average of 71.12 percent, compared to the national average of 74.0 percent and the regional average of 70.1 percent for publicly traded thrifts. The Corporations ratio of total net loans to assets changed from 70.46 percent of total assets at December 31, 2016, to 71.77 percent at December 31, 2017, to 76.50 percent at June 30, 2018.
The parameter for the selection of the comparable group is from 60.0 percent to 88.0 percent with a midpoint of 74.0 percent. The lower end of the parameter range relates to the fact that, as the referenced national and regional averages indicate, many institutions hold greater volumes of investment securities and/or mortgage-backed securities as cyclical alternatives to lending, but may otherwise be similar to the Corporation.
Total Net Loans and Mortgage-Backed Securities to Assets
As discussed previously, the Corporations shares of mortgage-backed securities to assets and total net loans to assets were 10.77 percent and 76.50 percent, respectively, for a combined share of 87.27 percent. Recognizing the industry and regional ratios of 81.1 percent and 77.7 percent, respectively, the parameter range for the comparable group in this category is 70.0 percent to 90.0 percent, with a midpoint of 80.0 percent.
Borrowed Funds to Assets
The Corporation had borrowed funds of $27.7 million or 5.73 percent of assets at June 30, 2018, which is lower than current industry averages.
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Borrowed Funds to Assets (cont.)
The use of borrowed funds by some institutions indicates an alternative to retail deposits and may provide a source of longer term funds. The federal insurance premium on deposits has also increased the attractiveness of borrowed funds. The institutional demand for borrowed funds has increased recently, due to the rise in rates paid on deposits. Additionally, many thrifts are now aggressively seeking deposits, since quality lending opportunities have increased in the current economic environment.
The parameter range of borrowed funds to assets is 22.0 percent or less with a midpoint of 11.0 percent.
Equity to Assets
The Corporations equity to assets ratio was 7.81 percent at June 30, 2018, 8.33 percent at December 31, 2017 and 8.29 percent at December 31, 2016, averaging 8.3 percent for the two fiscal years ended December 31, 2017. The Banks equity increased in 2016, increased in 2017, and then decreased in the six months ended June 30, 2018. After conversion, based on the midpoint value of $50.0 million, with a 44.0 percent minority offering, with 50.0 percent of the net proceeds of the public offering going to the Bank, its equity is projected to increase to 9.9 percent of assets, with the Corporation at 11.4 percent of assets.
Based on those equity ratios, we have defined the equity ratio parameter to be 7.0 percent to 26.0 percent with a midpoint ratio of 16.5 percent.
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PERFORMANCE PARAMETERS
Introduction
Exhibit 35 presents five parameters identified as key indicators of the Corporations earnings performance and the basis for such performance both historically and the six months ended June 30, 2018. The primary performance indicator is the Corporations core return on average assets (ROAA). The second performance indicator is the Corporations core return on average equity (ROAE). To measure the Corporations ability to generate net interest income, we have used net interest margin. The supplemental source of income for the Corporation is noninterest income, and the parameter used to measure this factor is the ratio of noninterest income to average assets. The final performance indicator is the Corporations ratio of operating expenses or noninterest expenses to average assets, a key factor in distinguishing different types of operations, particularly institutions that are aggressive in secondary market activities, which often results in much higher operating costs and overhead ratios.
Return on Average Assets
The key performance parameter is core ROAA. For the twelve months ended June 30, 2018, the Corporations core ROAA was 0.09 percent based on a core income of $438,000, as detailed in Item I of this Report. The net ROAA for the year ended December 31, 2017, was 0.36 percent. The Corporations ROAAs in its most recent three fiscal years ended December 31, 2017, were 0.18 percent, 0.29 percent, and 0.36 percent, respectively, with a three fiscal year average ROAA of 0.28 percent.
Considering the historical and current earnings performance of the Corporation, the range for the ROAA parameter based on core income has been defined as 1.00 percent or less with a midpoint of 0.50 percent.
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Return on Average Equity
The ROAE has been used as a secondary parameter to eliminate any institutions with an unusually high or low ROAE that is inconsistent with the Corporations position. This parameter does not provide as much meaning for a newly converted thrift institution as it does for established stock institutions, due to the unseasoned nature of the capital structure of the newly converted thrift and the inability to accurately reflect a mature ROAE for the newly converted thrift relative to other stock institutions.
The Corporations core ROAE for the twelve months ended June 30, 2018, was 1.08 percent based on its core income and 4.03 percent in the fiscal year ended December 31, 2017.
The parameter range for ROAE for the comparable group, based on core income, is 8.00 percent or less with a midpoint of 4.00 percent.
Net Interest Margin
The Corporation had a net interest margin of 3.13 percent for the twelve months ended June 30, 2018, representing net interest income as a percentage of average interest-earning assets. The Corporations net interest margin levels in its three fiscal years of 2015 through 2017 were 2.94 percent, 2.81 percent, and 2.80 percent, respectively, averaging 2.85 percent.
The parameter range for the selection of the comparable group is from a low of 2.70 percent to a high of 4.20 percent with a midpoint of 3.45 percent.
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Operating Expenses to Assets
For the twelve months ended June 30, 2018, the Corporation had a 3.77 percent ratio of operating expense to average assets. In its three fiscal years ended December 31, 2017, the Corporations expense ratio averaged 3.36 percent, from a low of 3.31 percent in fiscal year 2016 to a high of 3.42 percent in fiscal year 2015.
The operating expense to assets parameter for the selection of the comparable group is from a low of 1.50 percent to a high of 4.50 percent with a midpoint of 3.00 percent.
Noninterest Income to Assets
Compared to publicly traded thrifts, the Corporation has experienced a lower level of noninterest income as a source of additional income. The Corporations ratio of noninterest income to average assets was 0.62 percent for the twelve months ended June 30, 2018. For its three years ended December 31, 2015 through 2017 the Corporations ratio of noninterest income to average assets was 0.71 percent, 0.96 percent and 0.38 percent, respectively, for an average of 0.68 percent.
The range for this parameter for the selection of the comparable group is 1.50 percent of average assets or less, with a midpoint of 0.75 percent.
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ASSET QUALITY PARAMETERS
Introduction
The final set of financial parameters used in the selection of the comparable group are asset quality parameters, also shown in Exhibit 35. The purpose of these parameters is to insure that any thrift institution in the comparable group has an asset quality position similar to that of the Corporation. The three defined asset quality parameters are the ratios of nonperforming assets to total assets, repossessed assets to total assets and loan loss reserves to total assets at the end of the most recent period.
Nonperforming Assets to Total Assets
The Corporations ratio of nonperforming assets to assets was 0.38 percent at June 30, 2018, which was lower than the national average of 0.65 percent for publicly traded thrifts and the average of 0.67 percent for Midwest thrifts. The Corporations ratio of nonperforming assets to total assets averaged 0.72 for its most recent three fiscal years ended December 31, 2017, from a high of 1.10 percent in 2015, to a low of 0.40 percent 2017.
The comparable group parameter for nonperforming assets is 2.25 percent or less of total assets, with a midpoint of 1.13 percent.
Repossessed Assets to Assets
The Corporation had no repossessed assets at June 30, 2018, representing a ratio to total assets of zero percent, following ratios of repossessed assets to total assets of zero percent at December 31, 2017, and December 31, 2016, respectively. National and regional averages were 0.12 percent and 0.13 percent, respectively, for publicly traded thrift institutions.
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Repossessed Assets to Assets (cont.)
The range for the repossessed assets to total assets parameter is 0.12 percent of assets or less with a midpoint of 0.06 percent.
Loans Loss Reserves to Assets
The Corporation had an allowance for loan losses of $3,092,000, representing a loan loss allowance to total assets ratio of 0.64 percent at June 30, 2018, which was similar to its 0.66 percent ratio at December 31, 2017, and lower than its 0.67 percent ratio at December 31, 2016.
The loan loss allowance to assets parameter range used for the selection of the comparable group required a minimum ratio of 0.40 percent of assets.
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THE COMPARABLE GROUP
With the application of the parameters previously identified and applied, the final comparable group represents ten institutions identified in Exhibits 35, 36 and 37. The comparable group institutions range in size from $132.2 million to $944.3 million with an average asset size of $521.0 million and have an average of 6.0 offices per institution. Two of the comparable group institutions are in Maryland, two are in New York, and one each in Illinois, Nebraska, Pennsylvania, Ohio, Minnesota and Ohio, and all ten were traded on NASDAQ.
The comparable group institutions as a unit have a ratio of equity to assets of 13.84 percent, which is 9.8 percent higher than all publicly traded thrift institutions in the United States; and for the most recent four quarters indicated a core return on average assets of 0.54 percent, lower than all publicly traded thrifts at 0.87 percent and publicly traded Wisconsin thrifts at 1.07 percent.
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IV. | ANALYSIS OF FINANCIAL PERFORMANCE |
This section reviews and compares the financial performance of the Corporation to all publicly traded thrifts, to publicly traded thrifts in the Midwest region and to Wisconsin thrifts, as well as to the ten institutions constituting the Corporations comparable group, as selected and described in the previous section. The comparative analysis focuses on financial condition, earning performance and pertinent ratios as presented in Exhibits 38 through 43.
As presented in Exhibits 39 and 40, at June 30, 2018, the Corporations total equity of 7.81 percent of assets was lower than the comparable group at 13.84 percent, all thrifts at 12.60 percent, Midwest thrifts at 12.58 percent and Wisconsin thrifts at 15.26 percent. The Corporation had a 76.50 percent share of net loans in its asset mix, lower than the comparable group at 77.85 percent, but higher than all thrifts at 74.00 percent, Wisconsin thrifts at 75.58 percent and higher than Midwest thrifts at 70.13 percent. The Corporations lower share of net loans and lower 5.82 percent share of cash and investments is primarily the result of its higher 10.77 percent share of mortgage-backed securities. The comparable group had a higher 9.89 percent share of cash and investments and a lower 5.48 percent share of mortgage-backed securities. All thrifts had 7.13 percent of assets in mortgage-backed securities and 11.66 percent in cash and investments. The Corporations 83.83 percent share of deposits was higher than the comparable group, all thrifts and Midwest thrifts and higher than Wisconsin thrifts, reflecting the Corporations lower share of borrowed funds of 5.73 percent and lower share of equity of 7.81 percent. As ratios to assets, the comparable group had deposits of 78.69 percent and borrowings of 7.87 percent. All thrifts averaged a 77.83 percent share of deposits and 9.27 percent of borrowed funds, while Midwest thrifts had a 79.03 percent share of deposits and an 8.05 percent share of borrowed funds. Wisconsin thrifts averaged a 74.37 percent share of deposits and a higher 10.67 percent share of borrowed funds. The Corporation had no goodwill, compared to 0.55 percent for the comparable group, 0.60 percent for all thrifts, 0.28 percent for Midwest thrifts and 0.02 percent for Wisconsin thrifts.
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Analysis of Financial Performance (cont.)
Operating performance indicators are summarized in Exhibits 41, 42 and 43 and provide a synopsis of key sources of income and key expense items for the Corporation in comparison to the comparable group, all thrifts, and regional thrifts for the trailing four quarters.
As shown in Exhibit 43, for the twelve months ended June 30, 2018, the Corporation had a yield on average interest-earning assets lower than the comparable group and similar to all thrifts, higher than Midwest thrifts and lower than Wisconsin thrifts. The Corporations yield on interest-earning assets was 4.09 percent compared to the comparable group at 4.12 percent, all thrifts at 4.07 percent, Midwest thrifts at 3.75 percent and Wisconsin thrifts at 4.03 percent.
The Corporations cost of funds for the twelve months ended June 30, 2018, was higher than the comparable group, Midwest thrifts and all thrifts and lower than Wisconsin thrifts. The Corporation had an average cost of interest-bearing liabilities of 0.96 percent compared to 0.88 percent for the comparable group, 0.86 percent for all thrifts, 0.81 percent for Midwest thrifts and 0.90 percent for Wisconsin thrifts. The Corporations yield on interest-earning assets and interest cost resulted in a net interest spread of 3.13 percent, which was lower than the comparable group at 3.24 percent, lower than all thrifts at 3.22 percent, higher than Midwest thrifts at 2.98 percent and lower than Wisconsin thrifts at 3.41 percent. The Corporation generated a net interest margin of 3.13 percent for the twelve months ended June 30, 2018, based on its ratio of net interest income to average interest-earning assets, which was lower than the comparable group ratio of 3.39 percent. All thrifts averaged a higher 3.37 percent net interest margin for the trailing four quarters, with Midwest thrifts at 3.09 percent and Wisconsin thrifts at a higher 3.30 percent.
The Corporations major source of earnings is interest income, as indicated by the operations ratios presented in Exhibit 42. The Corporation had no provision for loan losses during the twelve months ended June 30, 2018, representing zero percent of average assets. The average provision for loan losses for the comparable group was 0.14 percent, with all thrifts at 0.08 percent, Midwest thrifts at 0.06 percent and Wisconsin thrifts at (0.12) percent.
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Analysis of Financial Performance (cont.)
The Corporations total noninterest income was $2,921,000 or 0.62 percent of average assets for the twelve months ended June 30, 2018. Such a ratio of noninterest income to average assets was lower than the comparable group at 0.83 percent, and lower than all thrifts at 0.84 percent, Midwest thrifts at 0.87 percent and Wisconsin thrifts at 0.57 percent. For the twelve months ended June 30, 2018, the Corporations operating expense ratio was 3.77 percent of average assets, higher than the comparable group at 3.11 percent, all thrifts at 2.81 percent, Midwest thrifts at 3.10 percent, and Wisconsin thrifts at 3.66 percent.
The overall impact of the Corporations income and expense ratios is reflected in its net income and return on assets. For the twelve months ended June 30, 2018, the Corporation had a net ROAA of (0.79) percent and core ROAA of 0.09 percent. For its most recent four quarters, the comparable group had a higher net ROAA of 0.42 percent and a core ROAA of 0.51 percent. All publicly traded thrifts averaged a higher net ROAA of 0.84 percent and 0.87 percent core ROAA, with Midwest thrifts a 0.78 percent net ROAA and a 1.03 percent core ROAA. The twelve month net ROAA for the 4 Wisconsin thrifts was 0.96 percent and their core ROAA was 1.07 percent.
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V. | MARKET VALUE ADJUSTMENTS |
This is a conclusive section where adjustments are made to determine the pro forma market value or appraised value of the Corporation based on a comparison of PyraMax with the comparable group. These adjustments will take into consideration such key items as earnings performance, primary market area, financial condition, asset and deposit growth, dividend payments, subscription interest, liquidity of the stock to be issued, management, and market conditions or marketing of the issue. It must be noted that all of the institutions in the comparable group have their differences among themselves and relative to the Bank, and, as a result, such adjustments become necessary.
EARNINGS PERFORMANCE
In analyzing earnings performance, consideration was given to net interest income, the amount and volatility of interest income and interest expense relative to changes in market area conditions and to changes in overall interest rates, the quality of assets as it relates to the presence of problem assets which may result in adjustments to earnings due to provisions for loan losses, the balance of current and historical nonperforming assets and real estate owned, the balance of valuation allowances to support any problem assets or nonperforming assets, the amount and volatility of noninterest income, and the amount and ratio of noninterest expenses. The earnings performance analysis was based on the Banks respective net and core earnings for the twelve months ended June 30, 2018, with comparisons to the core earnings of the comparable group, all thrifts and other geographical subdivisions.
As discussed earlier, the Bank has experienced increases in its assets and loans in three of the past four fiscal years and increases in the six months ended June 30, 2018, with deposits indicating growth in all periods. The Bank has experienced lower earnings in four of the past five years with a loss in the year ended December 31, 2014, and is focused on reducing operating expenses, monitoring and controlling its balance of nonperforming assets; monitoring and
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Earnings Performance (cont.)
strengthening its ratio of interest sensitive assets relative to interest sensitive liabilities, thereby maintaining its overall interest rate risk; and strengthening its net interest margin. Historically, the Bank has been characterized with a slightly higher yield on earning assets but a higher cost of funds, resulting in a lower net interest margin, which has been modestly below industry averages, and lower than its comparable group, with the trend experiencing a minimal decrease over the past two years and its 3.13 percent net interest margin for the twelve months ended June 30, 2018, was lower than the industry average of 3.37 percent and lower than the comparable group average of 3.46 percent. During its past two years ended December 31, 2017, PyraMaxs ratio of interest expense to interest-bearing liabilities has increased noticeably from 0.79 percent in 2016 to 0.91 percent in 2017, and then to 0.96 percent in the twelve months ended June 30, 2018 The Banks ratio was higher than the average of 0.86 percent for the comparable group and higher than the average of 0.86 percent for all thrifts. Following the conversion, the Bank will strive to control its operating expenses, strive to increase its net interest margin, increase its noninterest income, gradually increase its net income, increase its return on assets, continue to control its balance of nonperforming and classified assets, and closely monitor its interest rate risk.
From December 31, 2013, to December 31, 2017, five of the seven categories of loans experienced increases in their balances, with commercial real estate and multi-family loans increasing the most in dollars. Commercial real estate and multi-family loans increased by $81.2 million or 80.0 percent, from December 31, 2013, to December 31, 2017. Other commercial business loans increased by $16.9 million or 108.4 percent from December 31, 2013, to December 31, 2017, one- to four-family loans increased $7.6 million or 7.6 percent, construction loans increased $2.4 million or 26.5 percent and consumer loans increased $93,000 or 4.5 percent. All other loan categories experienced decreases in their balances. Overall, the Banks lending activities resulted in a total loan increase of $56.4 million or 20.3 percent and a net loan increase of $57.2 million or 20.9 percent from December 31, 2013, to December 31, 2017. In the six months ended June 30, 2018, loans increased $36.9 million or 11.0 percent.
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Earnings Performance (cont.)
The impact of PyraMaxs primary lending efforts has been to generate a yield on average interest-earning assets of 4.09 percent for the twelve months ended June 30, 2018, compared to a higher 4.12 percent for the comparable group, 4.07 percent for all thrifts and a similar 4.03 percent for Wisconsin thrifts. The Banks ratio of interest income to average assets was 3.35 percent for the twelve months ended June 30, 2018, lower than the comparable group at 3.81 percent, all thrifts at 3.74 percent and lower than Wisconsin thrifts at 4.01 percent.
PyraMaxs 0.96 percent cost of interest-bearing liabilities for the twelve months ended June 30, 2018, was modestly higher than the comparable group at 0.88 percent, higher than all thrifts at 0.86 percent, higher than Midwest thrifts at 0.81 percent and higher than Wisconsin thrifts at 0.90 percent. The Banks resulting net interest spread of 3.13 percent for the twelve months ended June 30, 2018, was lower than the comparable group at 3.24 percent, lower than all thrifts at 3.22 percent, higher than Midwest thrifts at 2.98 percent and lower than Wisconsin thrifts at 3.41 percent. The Banks net interest margin of 3.13 percent, based on average interest-earning assets for the twelve months ended June 30, 2018, was lower than the comparable group at 3.39 percent, lower than all thrifts at 3.37 percent, higher than Midwest thrifts at 3.09 percent and lower than Wisconsin thrifts at 3.30 percent.
The Banks ratio of noninterest income to average assets was 0.62 percent for the twelve months ended June 30, 2018, which was moderately lower than the comparable group at 0.83 percent, lower than all thrifts at 0.84 percent, Midwest thrifts at 0.87 percent and higher than Wisconsin thrifts at 0.57 percent.
The Banks operating expenses were higher than the comparable group, all thrifts, Midwest thrifts, and Wisconsin thrifts. For the twelve months ended June 30, 2018, PyraMax had an operating expenses to assets ratio of 3.77 percent compared to 3.11 percent for the comparable group, 2.81 percent for all thrifts, 3.10 percent for Midwest thrifts and 3.66 percent for Wisconsin thrifts. PyraMax had a higher 109.5 percent efficiency ratio for the twelve months ended June 30, 2018, compared to the comparable group with an efficiency ratio of 74.1 percent. The efficiency ratio for all publicly traded thrifts was 60.7 percent for the most recent twelve months.
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Earnings Performance (cont.)
For the twelve months ended June 30, 2018, PyraMax generated a lower ratio of noninterest income, a higher ratio of noninterest expenses and a modestly lower net interest margin relative to its comparable group. The Bank had a zero percent provision for loan losses during the twelve months ended June 30, 2018, compared to the comparable group at 0.14 percent of assets, all thrifts at 0.08 percent and Midwest thrifts at 0.06 percent. The Banks allowance for loan losses to total loans of 0.83 percent was lower than the comparable group and lower than all thrifts. The Banks 167.59 percent ratio of reserves to nonperforming assets was higher than the comparable group at 107.08 percent, higher than all thrifts at 124.74 percent and higher than Midwest thrifts at 119.42 percent.
As a result of its operations, the Banks net and core income for the twelve months ended June 30, 2018, were lower than the comparable group. Based on a modest loss, the Bank had a return on average assets of (0.79) percent for the twelve months ended June 30, 2018, and a return on average assets of 0.36 percent and 0.29 percent in 2017 and 2016, respectively. The Banks core return on average assets was a higher 0.09 percent for the twelve months ended June 30, 2018, as detailed in Exhibit 7. For their most recent four quarters, the comparable group had a moderately higher net ROAA of 0.42 percent and a higher core ROAA of 0.51 percent, while all thrifts indicated a higher net ROAA and higher core ROAA of 0.84 percent and 0.87 percent, respectively. Midwest thrifts indicated a net ROAA of 0.78 percent and a core ROAA of 1.03 percent.
Following its conversion, PyraMaxs earnings will continue to be dependent on a combination of the overall trends in interest rates, the consistency, reliability and variation of its noninterest income, overhead expenses and its asset quality and its future needs for provisions for loan losses. Earnings are projected to represent a lower 0.13 percent ROAA in fiscal 2019 followed by earnings based on an ROAA of 0.27 percent in 2020 and 0.32 percent in 2021.
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Earnings Performance (cont.)
In recognition of the foregoing earnings related factors, considering PyraMaxs historical and current performance measures, as well as Business Plan projections, a moderate downward adjustment has been made to the Corporations pro forma market value for earnings performance.
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MARKET AREA
PyraMaxs market area is focused on Milwaukee, Ozaukee and Waukesha Counties, Wisconsin. Population increased minimally in Milwaukee County from 2000 to 2010, and the number of households also increased minimally. Ozaukee Countys increase in population and households was higher than that of Milwaukee County but lower than that of Waukesha County from 2000 to 2010. The per capita and median household income levels in Milwaukee County were below those of Waukesha County. The 2010 per capita income and median household income levels in Ozaukee and Waukesha Counties were above state and national levels. Milwaukee Countys unemployment rates have been above national rates. Ozaukee and Waukesha Counties unemployment rates have been lower than state and national rates. According to the 2010 Census, Milwaukee Countys median housing value was below both the state and the national median housing value, but median housing values in Waukesha County and Ozaukee County were above the state and national median levels.
The Bank holds deposits of approximately 6.5 percent of all thrift deposits in the three-county market area as of June 30, 2017, representing a minimal 0.4 percent share of the total deposit base of approximately $68.4 billion.
In recognition of the foregoing factors, we believe that a downward adjustment is warranted for the Banks market area.
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FINANCIAL CONDITION
The financial condition of PyraMax is discussed in Section I and shown in Exhibits 1, 2, 5, and 12 through 21, and is compared to the comparable group in Exhibits 38, 39, and 40. The Banks ratio of total equity to total assets was 7.81 percent at June 30, 2018, which was moderately lower than the comparable group at 13.88 percent, all thrifts at 12.60 percent and Midwest thrifts at 12.58 percent. Based on the minority offering completed at the midpoint of the valuation range, the Corporations pro forma equity to assets ratio will increase to 11.39 percent and the Banks pro forma equity to assets ratio will increase to 9.93 percent.
The Banks mix of assets and liabilities indicates both similarities to and variations from its comparable group. PyraMax had a slightly lower 76.5 percent ratio of net loans to total assets at June 30, 2018, compared to the comparable group at 77.9 percent. All thrifts indicated a lower 74.0 percent, with Midwest thrifts at a lower 70.1 percent. The Banks 5.82 percent share of cash and investments was lower than the comparable group at 9.89 percent, while all thrifts were at 11.66 percent and Midwest thrifts were at 13.78 percent. PyraMaxs 10.77 percent ratio of mortgage-backed securities to total assets was higher than the comparable group at 5.48 percent and higher than all thrifts at 7.13 percent and higher than Midwest thrifts at 7.61 percent.
The Banks 83.83 percent ratio of deposits to total assets was higher than the comparable group at 78.69 percent, higher than all thrifts at 77.83 percent and higher than Midwest thrifts at 79.03 percent. PyraMaxs higher ratio of deposits was due to its lower share of equity. PyraMax had a lower equity to asset ratio of 7.81 percent, compared to the comparable group at 13.84 percent of total assets, with all thrifts at 12.60 percent and Midwest thrifts at 12.58 percent. PyraMax had a lower share of borrowed funds to assets of 5.73 percent at June 30, 2018, lower than the comparable group at 7.87 percent and lower than all thrifts at 9.27 percent and Midwest thrifts at 8.05 percent.
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Financial Condition (cont.)
PyraMax had no goodwill and had a lower share of repossessed real estate at June 30, 2018. The Bank had no repossessed real estate at June 30, 2018. This compares to ratios of 0.55 percent for goodwill and intangible assets and 0.04 percent for real estate owned, for the comparable group. All thrifts had a goodwill and intangible assets ratio of 0.60 percent and a real estate owned ratio of 0.12 percent.
The financial condition of PyraMax has not been significantly impacted by its balance of nonperforming assets of $1,845,000 or a lower 0.38 percent of total assets at June 30, 2018, compared to a higher 1.05 percent for the comparable group, 0.65 percent for all thrifts, 0.67 percent for Midwest thrifts and 0.27 percent for Wisconsin thrifts. The Banks ratio of nonperforming assets to total assets was a higher 0.89 percent at December 31, 2016, and a higher 1.10 percent at December 31, 2017.
At June 30, 2018, PyraMax had $3,092,000 of allowances for loan losses, which represented 0.64 percent of assets and 0.83 percent of total loans. The comparable group indicated higher allowance ratios, relative to assets and relative to loans, equal to 0.93 percent of assets and a higher 1.15 percent of total loans, while all thrifts had allowances relative to assets and loans that averaged a higher 0.77 percent of assets and a higher 1.01 percent of total loans. Also of major importance is an institutions ratio of allowances for loan losses to nonperforming assets, since a portion of nonperforming assets might eventually be charged off. PyraMaxs $3,092,000 of allowances for loan losses represented a higher 167.59 percent of nonperforming assets at June 30, 2018, compared to the comparable groups 107.08 percent, with all thrifts at 124.74 percent, Midwest thrifts at a lower 119.42 percent and Wisconsin thrifts at a lower 138.83 percent. PyraMaxs ratio of net charge-offs to average total loans was zero percent for the twelve months ended June 30, 2018, compared to a higher 0.39 percent for the comparable group, 0.16 percent for all thrifts and 0.21 percent for Midwest thrifts.
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Financial Condition (cont.)
PyraMax has a modest level of interest rate risk. The change in the Banks EVE level at June 30, 2018, reflecting the most current information available, based on a rise in interest rates of 100 basis points was an 8.2 percent decrease, representing a dollar decrease in equity value of $4,354,000. The Banks exposure increases to a 16.7 percent decrease in its EVE level under a 200 basis point rise in rates, representing a dollar decrease in equity of $8,885,000.
Compared to the comparable group, with particular attention to the Banks lower level of total equity and lower share of risk-based capital, level and share of nonperforming assets and asset and liability mix and lower share of allowance for loan loss to loans but higher share to nonperforming assets, we believe that a downward adjustment is warranted for PyraMaxs current financial condition, due to the Banks lower share of total equity and risk-based capital, lower share of allowance to loans, higher share of allowance for loan losses to nonperforming assets, higher share of nonperforming assets, historically, and recently lower share currently.
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ASSET, LOAN AND DEPOSIT GROWTH
During its most recent two fiscal years, PyraMax has been characterized by a modest changes in assets, loans and deposits. The Banks average annual asset change from December 31, 2015, to December 31, 2017, was a 4.1 percent increase. This rate compares to a 3.9 percent increase for the comparable group, a lower 3.7 percent for all thrifts, and a lower 3.4 percent for Midwest thrifts. The Banks modest change in assets is less than its increase in total net loans during the period of an average annual 4.6 percent with an average annual increase in cash and investments of 2.8 percent. PyraMaxs deposits indicate an average annual increase of 3.5 percent from December 31, 2015, to December 31, 2017, compared to average growth rates of 3.4 percent for the comparable group, 2.5 percent for all thrifts and 2.7 percent for Midwest thrifts.
PyraMaxs deposits indicated an increase of 8.1 percent from December 31, 2016 to 2017. Annual deposit change was growth rates of 3.8 percent for the comparable group, 3.2 percent for all thrifts and 2.9 percent for Midwest thrifts. The Bank had $27.8 million in borrowed funds or 5.7 percent of assets at June 30, 2018, compared to the comparable group at 7.2 percent and had a higher $34.7 million in borrowed funds at December 31, 2017, or 7.4 percent of assets.
In spite of its minimal deposit increase, historically, the Bank grew moderately in 2017, and considering the demographics, competition and deposit base trends in its market area, the Banks ability to increase its asset, loan and deposit bases in the future is significantly dependent on its capital position combined with its ability to increase its market share by competitively pricing its loan and deposit products, maintaining a high quality of service to its customers and strengthening its loan origination activity, all impacted by the Banks performance by the senior management team. PyraMaxs primary market area county experienced minimal increases in population and households in Milwaukee County between 2000 and 2010, while the surrounding market area counties experienced a higher increase. The Banks primary market area county also indicated 2010 per capita income lower than Wisconsins and that of the United States, and the median household income level in Milwaukee County was also below the state and the national levels. In 2010, the median housing value in Milwaukee County was lower than that of Wisconsin and also above that of the United States, and the median rent level was also below both state and national levels.
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Asset, Loan and Deposit Growth (cont.)
The total deposit base in the three market area counties increased by 9.5 percent from June 30, 2016, to June 30, 2017; and during that period, the number of financial institution offices in the market area counties decreased by three offices. From June 30, 2016, to June 30, 2017, PyraMaxs deposit market share in Waukesha County was 0.6 percent in 2016 and 0.6 percent in 2017.
Based on the foregoing factors, we have concluded that no adjustment to the Corporations pro forma value is warranted for asset, loan and deposit growth.
DIVIDEND PAYMENTS
Due to the mid-tier holding company structure of the Corporation, the Corporation will not have the normal structure to pay dividends directly to shareholders, unlike a standard conversion. The payment of cash dividends will not occur in the future based on the current presence of an MHC. Four of the ten institutions in the comparable group paid cash dividends during the most recent year for an average dividend yield of 0.84 percent and an average payout ratio of 18.75 percent. During that twelve month period, the average dividend yield for all thrifts was a higher 1.38 percent with a payout ratio of 21.78 percent.
In our opinion, a minimal downward adjustment to the pro forma market value of the Corporation is warranted related to dividend payments.
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SUBSCRIPTION INTEREST
In 2017 and year-to-date 2018, investors interest in new issues has improved. Such interest is possibly related to the improved performance of financial institutions overall, which could be challenged in the future due to the compression of net interest margin. The selective and conservative reaction of IPO investors appears generally to be related to a number of analytical, economic and market-related factors, including the financial performance and condition of the converting thrift institution, the strength of the local economy, housing market conditions, general market conditions for financial institution stocks and stocks overall, aftermarket price trends and the expectation of increased merger/acquisition activity in the thrift industry and their higher pricing multiples.
PyraMax will direct its offering initially to depositors and residents in its market area. The board of directors and officers anticipate purchasing $460,000 or 1.9 percent of the stock offered to the public based on the appraised midpoint valuation and the 44.0 percent minority offering with 1.0 percent issued to the Foundation. The Bank will form an ESOP, which plans to purchase 3.92 percent of the total shares issued in the conversion.
The Bank has secured the services of Keefe Bruyette & Woods, Inc., Chicago, Illinois, to assist in the marketing and sale of the conversion stock.
Based on the size of the offering, recent banking conditions, current market conditions, historical local market interest, the terms of the offering, and recent subscription levels for conversions, we believe that no adjustment is warranted for the Banks anticipated subscription interest.
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LIQUIDITY/MARKETABILITY OF THE STOCK
The Corporation will offer its shares through a subscription and community offering with the assistance of Keefe Bruyette & Woods, Inc., A Stifel Company. The stock of the Corporation will be traded on the NASDAQ Capital Market.
The Banks total public offering is considerably smaller in size than the average market value of the comparable group. The comparable group has an average market value of $72.7 million for the stock outstanding compared to a midpoint public offering of $24.2 million for the Corporation, less the ESOP and the estimated 46,000 shares to be purchased by officers and directors, resulting in shares sold of just 2,374,000 or $23.7 million. The Corporations public market capitalization will be approximately 42.7 percent of the size of the public market capitalization of the comparable group. Of the ten institutions in the comparable group, all trade on Nasdaq with those ten institutions indicating an average daily trading volume of over 6,210 shares during the last four quarters.
The comparable group has an average of 4,803,580 shares outstanding compared to 2,420,000 shares outstanding for the Corporation based on the midpoint valuation, the minority offering structure, and the Foundation shares.
In addition, as a minority offering of an MHC, such structure reduces the marketability of the stock. As a group, MHCs indicate a lower ROAA and a lower ROAE compared to all publicly traded thrifts and a much lower median number of shares outstanding, recognizing the presence of two much larger publicly traded MHCs which inflates the average number of shares outstanding for MHCs. The average trading volume for MHCs is also lower as a group. Due to their control by the MHC, the positive influence of merger and acquisition activity in the overall market of publicly traded thrifts has not been paralleled for publicly traded MHCs.
Based on the higher average market capitalization, shares outstanding and daily trading volume relative to the Corporation, we have concluded that a downward adjustment to the Corporations pro forma market value is warranted relative to the liquidity of its stock.
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MANAGEMENT
Mr. Richard Hurd was appointed president and chief executive officer of PyraMax Bank in 2007. Prior to that, Mr. Hurd was the chief operating officer from 2004 to 2007. Mr. Hurd has been a board member since 2004. He joined PyraMax Bank in 2001. Prior to joining PyraMax Bank, Mr. Hurd had thirty years of banking experience at First Wisconsin National Bank, Marine Bank and Bank One Corporation. Mr. Hurds banking experience and knowledge of financial markets enhance the breadth of experience of the Banks board of directors.
Ms. Monica Baker was appointed senior vice president/chief brand officer in January 2014. Ms. Baker began with PyraMax Bank in 1993 as the vice president of marketing/human resources/savings. In August 2000, she was promoted to senior vice president of marketing/human resources and then in 2010 promoted to senior vice president of marketing/human resources/retail lending. Ms. Baker has been on the board of directors since 2006. Prior to being employed with PyraMax Bank, Ms. Baker was the human resources officer at Maritime Savings Bank. She brings over 34 years of banking experience, focused on retail banking, retail lending, human resources and marketing. Ms. Bakers extensive experience in retail banking, retail lending, human resources and marketing are valuable to our board of directors in assessing the performance of PyraMax Bank.
Mr. Richard J. Krier joined PyraMax Bank in April 2011 as the chief financial officer. Prior to that, Mr. Krier served as the chief financial officer of Partnership Community Bancshares from 2008 until 2011. Mr. Krier has over 30 years of broad-based banking experience in the areas of financial management, operations, performance measurement and decision support. Mr. Krier is also a certified public accountant.
Mr. Chuck Mauer joined PyraMax Bank in June 2010 as the Banks chief credit officer. He is responsible for the overall management of the Banks credit administration department, including loan underwriting, loan review, lending support, loan policies, procedures and processes to ensure the overall quality of the Banks loan portfolio. Mr. Mauer has over 30 years of commercial, consumer and mortgage lending as well as credit administration experience. Prior
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Management (cont.)
to working at PyraMax Bank, he was a first vice president of credit administration at Ozaukee Bank where he also managed client relationships for over 20 years. In 2007, Ozaukee Bank was acquired by BMO Harris Bank. Mr. Mauer remained with BMO Harris Bank for three more years, serving as senior vice president-concurrence officer.
Mr. Thomas K. Peterson was appointed senior vice president, chief lending officer in January 2017. Prior to being employed by PyraMax Bank, Mr. Peterson was the commercial business segment leader for the Milwaukee-Madison markets for Associated Bank. Mr. Peterson has over 36 years of banking experience, including various commercial banking roles at Ozaukee Bank, BMO Harris Bank, and Associated Bank.
During its most recent fiscal year, PyraMax has experienced a slight decrease in its net interest margin in contrast to the industry, experienced a decrease in its noninterest income and had a slight increase in its noninterest expenses to assets. The Bank experienced modest earnings in 2017 due to a tax credit and then modest losses in the first two quarters of 2018. The Banks asset quality position experienced significant change from December 31, 2013, to December 31, 2017, with nonperforming assets decreasing from 3.26 percent in 2013 to 0.89 percent in 2017 and then decreasing to 0.38 percent at June 30, 2018. The Banks management team is confident that the Bank is positioned for continued loan growth and a return to modest profitability following its conversion and minority offering.
Overall, we believe the Bank to be professionally and knowledgeably managed, as are the comparable group institutions. It is our opinion that no adjustment to the pro forma market value of the Corporation is warranted for management.
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MARKETING OF THE ISSUE
The necessity to build a new issue discount into the stock price of a new conversion continues to be a closely examined issue in recognition of uncertainty among investors as a result of the thrift industrys continued high level of competition, dependence on interest rate trends, volatility in the stock market, speculation on future changes, current proposed regulation related to the capital requirements of financial institutions and their restrictions on generating selected income.
We believe that a new issue discount applied to the price to book valuation approach is appropriate and necessary in this offering, recognizing the Banks weak and volatile earnings. In our opinion, such dependence on earnings and its volatility cause us to conclude that a modest new issue discount is warranted in the case of this offering. Consequently, at this time we have made a modest downward adjustment to the Corporations pro forma market value related to a new issue discount.
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VI. | VALUATION METHODS |
Introduction
As indicated in Section III of this Appraisal, in order to moderate the differences among the ten comparable group companies, we will derive their pricing ratios on a fully converted basis by applying pro forma second stage conversion assumptions to their current financial structure. Our application to the Corporation of the market value adjustments relative to the comparable group determined in Section IV will be the basis for the pro forma market value of the Corporation on a fully converted basis, pursuant to regulatory guidelines.
Valuation Methods
Historically, the method most frequently used by this firm to determine the pro forma market value of common stock for thrift institutions has been the price to book value ratio method, due to the volatility of earnings in the thrift industry. As earnings in the thrift industry have stabilized and improved in 2016 and 2017, additional attention has been given to the price to core earnings method, particularly considering increases in stock prices during those years. During the past few years, however, as fluctuating earnings have continued and recently rising interest rates have had varying effects on the earnings of individual institutions, depending on the nature of their operations, the price to book value method has continued to be the valuation focus and more meaningful to the objective of discerning commonality and comparability among institutions. In our opinion, the price to book value method is the appropriate method upon which to place primary emphasis in determining the pro forma market value of the Corporation. Additional analytical and correlative attention will be given to the price to core earnings method and the price to assets method.
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Valuation Methods (cont.)
In applying each of the valuation methods, consideration was given to the adjustments to the Corporations pro forma market value discussed in Section V. Downward adjustments were made for the Banks earnings, financial condition, market area, dividends, stock liquidity, and for the marketing of the issue. No adjustments were made for subscription interest, management, and balance sheet growth.
Valuation Range
In addition to the pro forma market value, we have defined a valuation range recognizing the 44.0 percent public offering, 1.0 percent share allocation to the Foundation, and the 55.0 percent interest in the Corporation to be retained by 1895 Bancorp of Wisconsin, MHC, the parent of the Corporation. The pro forma market value or appraised value will also be referred to as the midpoint value, with the remaining points in the valuation range based on the number of shares offered to the public. The number of public shares at the minimum will be 15 percent less than at the midpoint; increasing at the maximum to 15 percent over the midpoint; and further increasing at the maximum, as adjusted, commonly referred to as the supermaximum, to 15 percent over the maximum.
Price to Book Value Method
In the valuation of thrift institutions, the price to book value method focuses on an institutions financial condition. Exhibit 44 shows the average and median price to book value ratios for the comparable group, which were 108.65 percent and 110.18 percent, respectively. The comparable group indicated a moderate range, from a low of 94.93 percent to a high of 131.47 percent. The comparable group had modestly higher average and median price to tangible book value ratios of 116.40 percent and 114.70 percent, respectively, with a range of 95.89 percent to 138.55 percent. Excluding the low and the high in the group, the comparable groups price to book value range narrowed moderately from a low of 95.89 percent to a high of 114.57; and the comparable groups price to tangible book value range narrowed modestly from a low of 106.96 percent to a high of 127.33 percent.
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Price to Book Value Method (cont.)
The Corporations book value was $37,691,000 and its tangible book value was an identical $37,691,000 at June 30, 2018. Considering the foregoing factors in conjunction with the adjustments made in Section V, we have determined a fully converted pro forma price to book value ratio of 65.42 percent and a corresponding fully converted price to tangible book value ratio of 65.42 percent at the midpoint. The fully converted price to book value ratio increases from 60.81 percent at the minimum to 73.07 percent at the maximum, as adjusted, while the fully converted price to tangible book value ratio increases from 60.81 percent at the minimum to 73.07 percent at the maximum, as adjusted.
The Corporations fully converted pro forma price to book value ratio of 65.42 percent at the midpoint, as calculated using the prescribed formulary computation indicated in Exhibit 45, is influenced by the Banks capitalization and local markets, subscription interest in thrift stocks and overall market and economic conditions. Further, the Corporations ratio of equity to assets after the completion of the minority public offering at the midpoint of the valuation range will be approximately 15.91 percent compared to 13.84 percent for the comparable group.
Price to Core Earnings Method
The foundation of the price to core earnings method is the determination of the core earnings base to be used, followed by the calculation of an appropriate price to core earnings multiple. The Corporations after tax core earnings for the twelve months ended June 30, 2018, was $438,000 (reference Exhibit 7) and its net earnings was a loss of $3,691,000 for that period. To opine the pro forma market value of the Corporation using the price to core earnings method, we applied the core earnings base of $438,000.
73
Price to Core Earnings Method (cont.)
In determining the fully converted price to core earnings multiple, we reviewed the ranges of the price to core earnings and price to net earnings multiples for the comparable group and all publicly-traded thrifts. As indicated in Exhibit 44, the average price to core earnings multiple for the comparable group was 37.49, while the median was a lower 29.15. The average price to net earnings multiple was 37.56, and the median multiple was 31.53. The range of the price to core earnings multiple for the comparable group was from a low of 15.83 to a high of 92.58. The range in the price to core earnings multiple for the comparable group, excluding the high and low ranges, was from a low multiple of 17.03 to a high of 65.40 times earnings for eight of the ten institutions in the group, indicating a moderate narrowing of the range.
Consideration was given to the adjustments to the Corporations pro forma market value discussed in Section V combined with the Corporations negative actual earnings and minimal core earnings for the twelve months ended June 30, 2018. Due to the Banks minimal core resulting in an extremely high price to core earnings multiple exceeding 100, these ratios were deemed not meaningful. In recognition of these factors, the price to core earnings could not be used as a meaningful approach.
Price to Assets Method
The final valuation method is the price to assets method. This method is not frequently used, since the calculation incorporates neither an institutions equity position nor its earnings performance. Additionally, the prescribed formulary computation of value using the pro forma price to net assets method does not recognize the runoff of deposits concurrently allocated to the purchase of conversion stock or incorporate any adjustment for intangible assets, returning a pro forma price to assets ratio below its true ratio following conversion.
74
Price to Assets Method (cont.)
Exhibit 44 indicates that the average price to assets ratio of the comparable group was 15.04 percent, and the median was 12.88 percent. The range in the price to assets ratios for the comparable group varied from a low of 9.76 percent to a high of 28.63 percent. The range narrows moderately with the elimination of the two extremes in the group to a low of 10.18 percent and a high of 19.95 percent.
Consistent with the previously noted adjustments, it is our opinion that an appropriate price to assets ratio for the Corporation is 10.40 percent at the midpoint, which ranges from a low of 8.96 percent at the minimum to 13.36 percent at the maximum, as adjusted.
Valuation Analysis and Summary
Exhibits 45 through 49 present the pro forma valuation analysis and conclusions, pricing ratios, use of offering proceeds and a summary of the valuation premiums or discounts relative to the three valuation approaches based on the Corporation as fully converted.
Exhibit 49 presents the discounts or premiums of the Corporations fully converted pricing ratios relative to those of the comparable group. Based on the Corporations fully converted price to book value ratio and its equity of $37,691,000 at June 30, 2018, the Banks price to book value ratio of 65.42 percent represents a midpoint discount relative to the comparable group of 39.79 percent. The Corporations fully converted price to core earnings multiple was not meaningful due to minimal earnings. Recognizing the Corporations June 30, 2018, asset base of $482,617,000, the Corporations price to assets ratio of 10.40 percent represents a midpoint discount relative to the comparable group of 30.85 percent.
Exhibits 50 through 55 present the pro forma valuation analysis and conclusions, pricing ratios, use of offering proceeds and a summary of the valuation premiums or discounts relative to the three valuation approaches based on the Corporations minority offering and the reported pricing ratios of the comparable group.
75
Valuation Analysis and Summary (cont.)
Exhibit 55 presents the discounts or premiums of the Corporations minority offering pricing ratios relative to the comparable group. At the midpoint, the Corporations minority offering price to book value ratio of 93.34 percent represents a discount of 11.33 percent relative to the comparable group. The price to core earnings multiple was not meaningful for the Corporation at the midpoint or any other of the ranges due to minimal earnings. The Corporations price to assets ratio of 10.95 percent at the midpoint represents a discount of 27.19 percent.
Valuation Conclusion
As presented in Exhibit 43, the fully converted pro forma valuation range of the Corporation is from a minimum of $46,750,000 or 4,675,000 shares at $10.00 per share to a maximum of $63,250,000 or 6,325,000 shares at $10.00 per share, with a maximum, as adjusted, of $72,737,500 or 7,273,750 shares at $10.00 per share. Exhibit 43 also presents in detail the total number of shares to be issued at each valuation range and the respective number of shares issued to the mutual holding company, the public and the foundation.
It is our opinion that, as of August 7, 2018, the pro forma market value of the Corporation was $55,000,000 at the midpoint, representing a total of 5,500,000 shares at $10.00 per share, including 2,420,000 shares or 44.0 percent of the total shares offered to the public, 55,000 shares or 1.0 percent of the shares given to the newly formed foundation, and 3,025,000 shares or 55.00 percent of the total shares issued to 1895 Bancorp of Wisconsin, MHC, the mutual holding company.
76
EXHIBITS
NUMERICAL
EXHIBITS
EXHIBIT 1
PYRAMAX BANK, FSB
GREENFIELD, WISCONSIN
Balance Sheet
At June 30, 2018 and at December 31, 2017
At June 30, 2018 |
At December 31, 2017 |
|||||||
(In thousands) | ||||||||
ASSETS |
||||||||
Cash and due from banks |
$ | 7,995 | $ | 12,497 | ||||
Securities available-for-sale |
69,296 | 88,955 | ||||||
Loans held-for-sale |
1,170 | 217 | ||||||
Loans, net |
368,021 | 331,206 | ||||||
Premises and equipment, net |
7,601 | 7,661 | ||||||
Mortgage servicing rights, net |
2,163 | 2,270 | ||||||
Federal Home Loan Bank (FHLB) stock |
1,818 | 1,436 | ||||||
Accrued interest receivable |
1,144 | 1,214 | ||||||
Cash value of life insurance |
13,931 | 13,732 | ||||||
Other assets |
9,478 | 9,173 | ||||||
|
|
|
|
|||||
Total assets |
$ | 482,617 | $ | 468,361 | ||||
|
|
|
|
|||||
LIABILITIES AND EQUITY |
||||||||
LIABILITIES |
||||||||
Deposits |
$ | 404,560 | $ | 389,291 | ||||
Advance payments by borrowers for taxes and insurance |
7,367 | 385 | ||||||
FHLB advances |
27,677 | 34,693 | ||||||
Accrued interest payable |
346 | 340 | ||||||
Other liabilities |
4,977 | 4,658 | ||||||
|
|
|
|
|||||
Total liabilities |
444,927 | 429,367 | ||||||
EQUITY |
||||||||
Undivided profits |
39,459 | 39,782 | ||||||
Accumulated other comprehensive income (loss) |
(1,769 | ) | (788 | ) | ||||
|
|
|
|
|||||
Total equity |
37,690 | 38,994 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | 482,617 | $ | 468,361 | ||||
|
|
|
|
Source: PyraMax Bank, FSBs unaudited and audited financial statements
79
EXHIBIT 2
PYRAMAX BANK, FSB
GREENFIELD, WISCONSIN
Balance Sheets
At December 31, 2016, 2015, 2014 and 2013
December 31, | ||||||||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks |
$ | 7,466,637 | $ | 6,575,640 | $ | 7,420,197 | $ | 12,274,804 | ||||||||
Federal funds sold |
312,365 | 616,634 | 2,369,720 | 722,652 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents |
7,779,002 | 7,192,274 | 9,789,917 | 12,997,456 | ||||||||||||
Securities available-for-sale |
96,458,236 | 73,009,742 | 83,885,327 | 106,712,035 | ||||||||||||
Loans held-for-sale |
478,600 | 338,905 | 246,225 | 952,595 | ||||||||||||
Loans, net |
312,523,462 | 313,999,934 | 288,794,433 | 274,018,330 | ||||||||||||
Premises and equipment, net |
8,924,793 | 9,115,033 | 9,490,691 | 10,694,657 | ||||||||||||
Mortgage servicing rights, net |
2,421,110 | 2,476,472 | 2,672,889 | 2,454,081 | ||||||||||||
Federal Home Loan Bank (FHLB) stock |
2,170,098 | 1,719,800 | 2,091,193 | 2,091,193 | ||||||||||||
Accrued interest receivable |
1,163,350 | 1,160,133 | 1,218,724 | 1,362,281 | ||||||||||||
Foreclosed assets, net |
| 5,150 | 162,200 | 1,904,648 | ||||||||||||
Cash value of life insurance |
13,320,529 | 12,872,331 | 12,426,429 | 11,991,356 | ||||||||||||
Other assets |
4,934,186 | 3,784,143 | 3,669,783 | 4,748,741 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 450,173,366 | $ | 425,673,917 | $ | 414,447,811 | $ | 429,927,373 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES AND RETAINED EARNINGS |
||||||||||||||||
LIABILITIES |
||||||||||||||||
Deposits |
||||||||||||||||
Demand deposits |
$ | 84,328,366 | $ | 77,149,982 | $ | 72,482,244 | $ | 69,797,623 | ||||||||
Savings deposits |
117,357,432 | 111,741,082 | 121,720,047 | 111,224,108 | ||||||||||||
Time deposits |
157,196,169 | 164,088,155 | 156,372,658 | 164,375,837 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total deposits |
358,881,967 | 352,979,219 | 350,574,949 | 345,397,568 | ||||||||||||
Advance payments by borrowers for taxes and insurance |
1,296,804 | 604,730 | 697,715 | 440,014 | ||||||||||||
FHLB borrowings |
48,224,396 | 31,452,032 | 22,795,025 | 41,819,916 | ||||||||||||
Accrued interest payable |
276,361 | 208,169 | 173,331 | 332,896 | ||||||||||||
Other liabilities |
4,153,611 | 3,596,721 | 4,125,498 | 4,428,093 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
412,833,139 | 388,840,871 | 378,366,518 | 392,418,487 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
STOCKHOLDERS EQUITY |
||||||||||||||||
Undivided profits |
37,993,562 | 36,739,627 | 35,974,491 | 39,162,723 | ||||||||||||
Accumulated other comprehensive income (loss) |
(653,335 | ) | 93,419 | 106,802 | (1,653,837 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total stockholders equity |
37,340,227 | 36,833,046 | 36,081,293 | 37,508,886 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities and equity |
$ | 450,173,366 | $ | 425,673,917 | $ | 414,447,811 | $ | 429,927,373 | ||||||||
|
|
|
|
|
|
|
|
Source: PyraMax Bank, FSBs financial statements
80
EXHIBIT 3
PYRAMAX BANK, FSB
GREENFIELD, WISCONSIN
Statement of Operations
For the Year Ended December 31, 2017 and the Twelve Months Ended June 30, 2018
Twelve Months Ended June 30, 2018 |
Year Ended December 31, 2017 |
|||||||
Interest and dividend income: |
||||||||
Loans, including fees |
$ | 13,701,752 | $ | 13,075,887 | ||||
Securities |
||||||||
Taxable |
1,961,800 | 2,101,835 | ||||||
Tax exempt |
| | ||||||
Other |
101,554 | 78,767 | ||||||
|
|
|
|
|||||
Total interest and dividend income |
15,765,106 | 15,256,489 | ||||||
Interest expense: |
||||||||
Deposits |
3,225,346 | 2,892,660 | ||||||
Advance payments by borrowers for taxes and insurance |
166 | 225 | ||||||
FHLB borrowings |
493,265 | 468,174 | ||||||
|
|
|
|
|||||
Total interest expense |
3,718,777 | 3,361,059 | ||||||
Net interest income before provision for loan losses |
12,046,329 | 11,895,430 | ||||||
Provision for loan losses |
| | ||||||
|
|
|
|
|||||
Net interest income after provision for loan losses |
12,046,329 | 11,895,430 | ||||||
Noninterest income: |
||||||||
Service fees |
844,834 | 867,135 | ||||||
Net gain on sale of loans |
696,479 | 778,535 | ||||||
Net gain on sale of securities |
849,694 | 772,225 | ||||||
Other |
530,310 | 473,808 | ||||||
|
|
|
|
|||||
Total noninterest income |
2,921,317 | 2,891,703 | ||||||
Noninterest expense: |
||||||||
Salaries and employee benefits |
9,711,982 | 8,647,708 | ||||||
Advertising and promotions |
236,763 | 182,237 | ||||||
Occupancy |
1,609,563 | 1,635,223 | ||||||
Computer services |
949,329 | 1,030,241 | ||||||
Other |
5,218,536 | 5,094,351 | ||||||
|
|
|
|
|||||
Total noninterest expense |
17,726,173 | 16,589,760 | ||||||
|
|
|
|
|||||
Income before income taxes |
(2,758,527 | ) | (1,802,627 | ) | ||||
Income tax (benefit) |
931,957 | (3,462,156 | ) | |||||
|
|
|
|
|||||
Net income |
$ | (3,690,484 | ) | $ | 1,659,529 | |||
|
|
|
|
Source: PyraMax Bank, FSBs unaudited and audited financial statements
81
EXHIBIT 4
PYRAMAX BANK, FSB
GREENFIELD, WISCONSIN
Statements of Operations
Years Ended December 31, 2013, 2014, 2015 and 2016
December 31 , | ||||||||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||||||
Interest and dividend income: |
||||||||||||||||
Loans, including fees |
$ | 11,999,734 | $ | 12,159,979 | $ | 12,530,206 | $ | 12,328,214 | ||||||||
Securities |
||||||||||||||||
Taxable |
1,745,773 | 1,662,321 | 2,058,877 | 2,419,811 | ||||||||||||
Tax exempt |
10,077 | 22,973 | 23,561 | 37,313 | ||||||||||||
Other |
40,972 | 10,611 | 41,170 | 22,848 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest and dividend income |
13,796,556 | 13,855,884 | 14,653,814 | 14,808,186 | ||||||||||||
Interest expense: |
||||||||||||||||
Deposits |
2,409,341 | 2,064,718 | 1,863,911 | 2,169,532 | ||||||||||||
Advance payments by borrowers for taxes and insurance |
379 | 648 | 1,059 | 1,861 | ||||||||||||
FHLB borrowings |
275,293 | 490,301 | 1,274,030 | 1,589,400 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total interest expense |
2,685,013 | 2,555,667 | 3,139,000 | 3,760,793 | ||||||||||||
Net interest income before provision for (recovery of) loan losses |
11,111,543 | 11 ,300,217 | 11,514,814 | 11 ,047,393 | ||||||||||||
Provision for (recovery of) loan losses |
| (683,851 | ) | | (600,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for loan losses |
11,111,543 | 11,984,068 | 11,514,814 | 11,647,393 | ||||||||||||
Noninterest income: |
||||||||||||||||
Service fees |
860,997 | 818,545 | 929,482 | 941,619 | ||||||||||||
Loan servicing income |
933,525 | 814,953 | 1,261,836 | 1,129,006 | ||||||||||||
Net gain on sale of loans |
1,712,817 | 870,219 | 352,806 | 864,674 | ||||||||||||
Net gain (loss) on sale of securities |
158,982 | 34,865 | (430,264 | ) | 1,103,227 | |||||||||||
Increase in cash value of life insurance |
448,197 | 445,902 | 435,073 | 440,836 | ||||||||||||
Net loss on sale of premises and equipment |
| (455 | ) | (350,245 | ) | (82,622 | ) | |||||||||
Other |
40,771 | 19,985 | 44,282 | 23,838 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest income |
4,155,289 | 3,004,014 | 2,242,970 | 4,420,578 | ||||||||||||
Noninterest expense: |
||||||||||||||||
Salaries and employee benefits |
7,801,681 | 7,281,943 | 6,921,165 | 6,615,117 | ||||||||||||
Foreclosed assets, net |
(64,008 | ) | 32,196 | 188,324 | 550,862 | |||||||||||
Advertising and promotions |
321,115 | 328,662 | 347,424 | 385,238 | ||||||||||||
Occupancy |
1,575,889 | 1,564,873 | 1,861,720 | 1,847,132 | ||||||||||||
Computer services |
1,014,523 | 970,075 | 1,292,272 | 1,371,048 | ||||||||||||
FHLB prepayment penalty |
| 683,851 | 3,097,940 | | ||||||||||||
FDIC assessment |
253,199 | 338,299 | 609,454 | 567,523 | ||||||||||||
Other |
3,110,498 | 3,023,047 | 2,627,717 | 3,512,771 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest expense |
14,012,897 | 14,222,946 | 16,946,016 | 14,849,691 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income before income taxes |
1,253,935 | 765,136 | (3,188,232 | ) | 1,218,280 | |||||||||||
Provision (benefit) for income taxes |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 1,253,935 | $ | 765,136 | $ | (3,188,232 | ) | $ | 1,218,280 | |||||||
|
|
|
|
|
|
|
|
Source: PyraMax Bank, FSBs financial statements
82
EXHIBIT 5
Selected Financial Information
At June 30, 2018 and At December 31, 2013, 2014, 2015, 2016 and 2017
At June 30 2018 |
At December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Selected Financial Condition Data: |
||||||||||||||||||||||||
Total assets |
$ | 482,617 | $ | 468,361 | $ | 450,173 | $ | 425,674 | $ | 414,448 | $ | 429,927 | ||||||||||||
Cash and cash equivalents |
7,995 | 12,497 | 7,779 | 7,192 | 9,790 | 12,997 | ||||||||||||||||||
Securities available-for-sale |
69,296 | 88,956 | 96,458 | 73,010 | 83,885 | 106,712 | ||||||||||||||||||
Loans held-for-sale |
1,170 | 217 | 479 | 339 | 246 | 953 | ||||||||||||||||||
Loans receivable, net |
368,021 | 331,206 | 312,523 | 314,000 | 288,794 | 274,018 | ||||||||||||||||||
Premises and equipment, net |
7,601 | 7,661 | 8,925 | 9,115 | 9,491 | 10,695 | ||||||||||||||||||
Mortgage servicing rights, net |
2,163 | 2,270 | 2,421 | 2,476 | 2,673 | 2,454 | ||||||||||||||||||
Federal Home Loan Bank stock |
1,818 | 1,436 | 2,170 | 1,720 | 2,091 | 2,091 | ||||||||||||||||||
Accrued interest receivable |
1,144 | 1,214 | 1,163 | 1,160 | 1,219 | 1,362 | ||||||||||||||||||
Bank-owned life insurance |
13,931 | 13,732 | 13,321 | 12,872 | 12,426 | 11,991 | ||||||||||||||||||
Other assets |
9,479 | 9,172 | 4,934 | 3,790 | 3,833 | 6,653 | ||||||||||||||||||
444,927 | 429,367 | 412,833 | 388,841 | 378,367 | 392,418 | |||||||||||||||||||
Deposits |
404,560 | 389,291 | 358,882 | 352,979 | 350,575 | 345,398 | ||||||||||||||||||
Federal Home Loan Bank advances |
27,677 | 34,693 | 48,224 | 31,452 | 22,796 | 41,820 | ||||||||||||||||||
Accrued interest receivable |
346 | 340 | 276 | 208 | 173 | 333 | ||||||||||||||||||
Other liabilities |
12,344 | 5,043 | 5,451 | 4,202 | 4,824 | 4,868 | ||||||||||||||||||
Total stockholders equity |
37,691 | 38,994 | 37,340 | 36,833 | 36,081 | 37,509 |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
83
EXHIBIT 6
Income and Expense Trends
For the Six Months Ended June 30, 2017 and 2018, and the Years Ended December 31, 2013, 2014, 2015, 2016 and 2017
For the Six Months Ended June 30, |
For the Years Ended December 31, |
|||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Selected Operating Data: |
||||||||||||||||||||||||||||
Interest and dividend income |
$ | 8,013 | $ | 7,500 | $ | 15,256 | $ | 13,797 | $ | 13,856 | $ | 14,654 | $ | 14,808 | ||||||||||||||
Interest expense |
1,948 | 1,591 | 3,361 | 2,685 | 2,556 | 3,139 | 3,761 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income |
6,065 | 5,909 | 11,895 | 11,112 | 11,300 | 11,515 | 11,047 | |||||||||||||||||||||
Provision for loan losses |
0 | 0 | 0 | 0 | (684 | ) | 0 | (600 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income after provision for loan losses |
6,065 | 5,909 | 11,895 | 11,112 | 11,984 | 11,515 | 11,647 | |||||||||||||||||||||
Noninterest income |
1,483 | 1,465 | 2,892 | 4,155 | 3,004 | 2,243 | 4,421 | |||||||||||||||||||||
Noninterest expense |
8,065 | 6,936 | 16,590 | 14,013 | 14,223 | 16,946 | 14,850 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income tax expense (benefit) |
(517 | ) | 438 | (1,803 | ) | 1,254 | 765 | (3,188 | ) | 1,218 | ||||||||||||||||||
Income tax expense (benefit) |
(194 | ) | (4,588 | ) | (3,463 | ) | 0 | 0 | 0 | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) |
$ | (323 | ) | $ | 5,026 | $ | 1,660 | $ | 1,254 | $ | 765 | $ | (3,188 | ) | $ | 1,218 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
84
EXHIBIT 7
PyraMax Bank, FSB
Normalized Earnings Trends
Twelve Months Ended June 30, 2018
Twelve Months Ended June 30, 2018 |
||||
(In thousands) | ||||
Net income before taxes |
$ | (2,759 | ) | |
Adjustments: |
||||
One-time tax expense |
1,041 | |||
Losses on sales of assets |
1,095 | |||
One-time expenses |
1,178 | |||
|
|
|||
Normalized earnings before taxes |
555 | |||
Taxes |
117 | (1) | ||
|
|
|||
Normalized earnings after taxes |
$ | 438 | ||
|
|
(1) | Based on normal tax rate of 21.0% |
Source: PyraMax Banks audited and unaudited financial statements
85
EXHIBIT 8
Performance Indicators
At or for the Six Months Ended June 30, 2017 and 2018 and
At or for the Years Ended December 31, 2013, 2014, 2015, 2016 and 2017
At or for the Six Months Ended June 30, |
At or for the Years Ended December 31, | |||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||
Performance Ratios: (1) |
| |||||||||||||||||||||||||||
Return on average assets (2) |
(0.14 | )% | 2.22 | % | 0.36 | % | 0.29 | % | 0.18 | % | (0.74 | )% | 0.29 | % | ||||||||||||||
Return on average equity (3) |
(1.68 | )% | 25.41 | % | 4.03 | % | 3.26 | % | 2.06 | % | (8.33 | )% | 3.14 | % | ||||||||||||||
Interest rate spread (4) |
2.65 | % | 2.71 | % | 2.67 | % | 2.70 | % | 2.83 | % | 2.79 | % | 2.71 | % | ||||||||||||||
Net interest margin (5) |
2.79 | % | 2.83 | % | 2.80 | % | 2.81 | % | 2.94 | % | 2.89 | % | 2.83 | % | ||||||||||||||
Efficiency ratio (6) |
106.86 | % | 94.06 | % | 112.19 | % | 91.79 | % | 99.43 | % | 123.17 | % | 96.00 | % | ||||||||||||||
Average interest-earning assets to average interest-bearing liabilities |
114.99 | % | 116.08 | % | 116.31 | % | 116.80 | % | 115.78 | % | 113.48 | % | 112.50 | % | ||||||||||||||
Loans to deposits |
90.05 | % | 84.77 | % | 85.85 | % | 87.74 | % | 89.78 | % | 83.38 | % | 80.62 | % | ||||||||||||||
Equity to assets (7) |
8.16 | % | 8.75 | % | 8.95 | % | 9.02 | % | 8.94 | % | 8.86 | % | 9.13 | % | ||||||||||||||
Capital Ratios: |
||||||||||||||||||||||||||||
Tier 1 capital (to adjusted total assets) |
7.46 | % | 8.52 | % | 7.52 | % | 8.41 | % | 8.50 | % | 8.40 | % | 8.79 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets) |
9.70 | % | 12.27 | % | 11.02 | % | 11.31 | % | 11.53 | % | 10.98 | % | 11.90 | % | ||||||||||||||
Total capital (to risk-weighted assets) |
10.55 | % | 13.24 | % | 11.98 | % | 12.22 | % | 12.52 | % | 12.16 | % | 13.11 | % | ||||||||||||||
Common equity Tier 1 capital (to risk-weighted assets) |
9.70 | % | 12.27 | % | 11.02 | % | 11.31 | % | 11.53 | % | 10.98 | % | 11.90 | % | ||||||||||||||
Asset Quality Ratios: |
||||||||||||||||||||||||||||
Allowance for loan losses as a percent of total loans |
0.83 | % | 0.95 | % | 0.93 | % | 0.95 | % | 0.97 | % | 1.28 | % | 1.38 | % | ||||||||||||||
Allowance for loan losses as a percent of nonperforming loans |
167.59 | % | 143.98 | % | 163.90 | % | 100.43 | % | 66.35 | % | 74.71 | % | 37.40 | % | ||||||||||||||
Net charge-offs to average outstanding loans during the period |
0.00 | % | 0.01 | % | 0.03 | % | (0.03 | )% | 0.01 | % | (0.03 | )% | (0.35 | )% | ||||||||||||||
Nonperforming loans as a percent of total loans |
0.50 | % | 0.66 | % | 0.56 | % | 0.95 | % | 1.47 | % | 1.71 | % | 3.68 | % | ||||||||||||||
Nonperforming assets as a percent of total assets |
0.38 | % | 0.46 | % | 0.40 | % | 0.67 | % | 1.09 | % | 1.21 | % | 2.82 | % |
(1) | Performance ratios for the six months ended June 30, 2018 and 2017 are annualized. |
(2) | Represents net income divided by average total assets |
(3) | Represents net income divided by average equity. |
(4) | Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost on average interest-bearing liabilities Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 29% for 2018 and 42% for the previous periods. |
(5) | Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 29% for 2018 and 42% for the previous periods. |
(6) | Represents noninterest expense divided by the sum of net interest income and noninterest income. |
(7) | Represents average equity dividend by average total assets. |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
86
EXHIBIT 9
Volume/Rate Analysis
For the Six Months Ended June 30, 2017 and 2018 and the Years Ended December 31, 2016 and 2017
Six Months Ended June 30, 2018 vs. 2017 |
Year Ended December 31, 2017 vs. 2016 |
|||||||||||||||||||||||
Increase (Decrease) Due to |
Increase (Decrease) Due to |
|||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Loans |
$ | 725,783 | $ | (77,132 | ) | $ | 648,651 | $ | 791,158 | $ | 330,450 | $ | 1,121,608 | |||||||||||
Securities |
(228,672 | ) | 75,968 | (152,704 | ) | 284,904 | 61,075 | 345,979 | ||||||||||||||||
Other |
(337 | ) | 13,010 | 12,673 | (6,983 | ) | 44,778 | 37,795 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest-earning assets |
$ | 496,774 | $ | 11,846 | $ | 508,620 | $ | 1,069,079 | $ | 436,303 | $ | 1,505,382 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
NOW |
$ | (920 | ) | $ | (5,007 | ) | $ | (5,927 | ) | $ | 1,636 | $ | 14,705 | $ | 16,341 | |||||||||
Money market accounts |
(3,987 | ) | (80,522 | ) | (84,509 | ) | (1,830 | ) | (51,462 | ) | (53,292 | ) | ||||||||||||
Savings |
684 | (6,497 | ) | (5,813 | ) | (1,463 | ) | 30,912 | 29,449 | |||||||||||||||
Certificates of deposits |
(141,815 | ) | (94,618 | ) | (236,433 | ) | (168,952 | ) | (306,857 | ) | (475,809 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest-bearing deposits |
$ | (146,038 | ) | $ | (186,644 | ) | $ | (332,682 | ) | $ | (170,609 | ) | $ | (312,702 | ) | $ | (483,311 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Borrowings |
18,576 | (43,667 | ) | (25,091 | ) | (167,387 | ) | (25,492 | ) | (192,879 | ) | |||||||||||||
Other |
(10 | ) | 71 | 61 | (7 | ) | 160 | 153 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest-bearing liabilities |
(127,472 | ) | (230,240 | ) | (357,712 | ) | (338,003 | ) | (338,034 | ) | (676,037 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Change in net interest income |
$ | 369,302 | $ | (218,394 | ) | $ | 150,908 | $ | 731,076 | $ | 98,269 | $ | 829,345 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
87
EXHIBIT 10
Yield and Cost Trends
At June 30, 2018, For the Six Months Ended June 30, 2016 and 2017, and
For the Years Ended December 31, 2015, 2016 and 2017
At June 30, 2018 |
For the Six Months Ended June 30, |
For the Years Ended December 31, |
||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2015 | ||||||||||||||||||||
Yield/ Rate (1) |
Yield/ Rate |
Yield/ Rate |
Yield/ Rate |
Yield/ Rate |
Yield/ Rate |
|||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||
Loans |
4.01 | % | 4.06 | % | 4.02 | % | 4.07 | % | 3.96 | % | 4.05 | % | ||||||||||||
Securities available-for-sale |
2.37 | % | 2.23 | % | 2.37 | % | 2.27 | % | 2.20 | % | 2.16 | % | ||||||||||||
Other interest-earning assets |
1.63 | % | 0.60 | % | 1.61 | % | 1.00 | % | 0.40 | % | 0.17 | % | ||||||||||||
Total interest-earning assets |
3.71 | % | 3.62 | % | 3.72 | % | 3.62 | % | 3.51 | % | 3.60 | % | ||||||||||||
Total assets |
3.43 | % | 3.34 | % | 3.43 | % | 3.34 | % | 3.25 | % | 3.33 | % | ||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||
NOW accounts |
0.16 | % | 0.12 | % | 0.15 | % | 0.12 | % | 0.17 | % | 0.18 | % | ||||||||||||
Money market accounts |
0.54 | % | 0.28 | % | 0.54 | % | 0.30 | % | 0.22 | % | 0.19 | % | ||||||||||||
Savings accounts |
0.12 | % | 0.10 | % | 0.12 | % | 0.10 | % | 0.15 | % | 0.16 | % | ||||||||||||
Certificates of deposit |
1.57 | % | 1.46 | % | 1.56 | % | 1.51 | % | 1.33 | % | 1.11 | % | ||||||||||||
Total interest-bearing deposits |
1.01 | % | 0.86 | % | 1.00 | % | 0.91 | % | 0.79 | % | 0.67 | % | ||||||||||||
Federal Home Loan Bank advances |
1.37 | % | 1.14 | % | 1.36 | % | 1.21 | % | 1.12 | % | 2.71 | % | ||||||||||||
Other interest-bearing liabilities |
0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.01 | % | ||||||||||||
Total interest-bearing liabilities |
1.03 | % | 0.88 | % | 1.03 | % | 0.92 | % | 0.79 | % | 0.77 | % | ||||||||||||
Interest rate spread (2) |
2.68 | % | 2.74 | % | 2.69 | % | 2.70 | % | 2.72 | % | 2.83 | % | ||||||||||||
Net interest margin (3) |
2.82 | % | 2.86 | % | 2.82 | % | 2.83 | % | 2.83 | % | 2.94 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average interest-earning assets to interest-bearing liabilities |
115.11 | % | 116.08 | % | 115.09 | % | 116.31 | % | 116.80 | % | 115.78 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Annualized |
(2) | Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. |
(3) | Net interest margin represents net interest income divided by average total interest-earning assets. |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
88
EXHIBIT 11
Net Portfolio Value
At June 30, 2018
Change in Interest Rates (Basis Points) (1) |
Estimated EVE (2) |
Estimated Increase (Decrease) in EVE |
||||||||||
$ Amount (2) | % Change | |||||||||||
(Dollars in thousands) | ||||||||||||
+400 | $ | 37,219 | $ | (16,092 | ) | (30.2 | )% | |||||
+300 | 40,353 | (12,958 | ) | (24.3 | )% | |||||||
+200 | 44,426 | (8,885 | ) | (16.7 | )% | |||||||
+100 | 48,957 | (4,354 | ) | (8.2 | )% | |||||||
| 53,311 | 0 | | |||||||||
-100 | 55,829 | 2,518 | (4.7 | )% |
(1) | Assumes an instantaneous uniform change in interest rates at all maturities. |
(2) | EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
89
EXHIBIT 12
Loan Portfolio Composition
At June 30, 2018, and,
At December 31, 2013, 2014, 2015, 2016 and 2017
(Dollars in thousands)
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||||||||
Residential real estate loans: |
||||||||||||||||||||||||||||||||||||||||||||||||
First mortgages |
$ | 107,433 | 29.0 | % | $ | 106,120 | 31.8 | % | $ | 103,900 | 33.0 | % | $ | 114,077 | 36.0 | % | $ | 90,325 | 30.9 | % | $ | 99,883 | 36.0 | % | ||||||||||||||||||||||||
Construction |
4,959 | 0.9 | % | 3,358 | 1.0 | % | 4,619 | 1.5 | % | 3,276 | 1.0 | % | 3,508 | 1.2 | % | 919 | 0.3 | % | ||||||||||||||||||||||||||||||
Commercial loans: |
||||||||||||||||||||||||||||||||||||||||||||||||
Real estate |
182,695 | 49.3 | % | 156,991 | 47.0 | % | 144,093 | 45.7 | % | 137,292 | 43.4 | % | 130,928 | 44.8 | % | 101,524 | 36.6 | % | ||||||||||||||||||||||||||||||
Land |
2,638 | 0.7 | % | 2,687 | 0.9 | % | 1,508 | 0.5 | % | 2,340 | 0.8 | % | 5,544 | 1.9 | % | 9,925 | 3.6 | % | ||||||||||||||||||||||||||||||
Other |
32,540 | 8.8 | % | 19,715 | 5.9 | % | 14,505 | 4.6 | % | 11,397 | 3.6 | % | 10,997 | 3.8 | % | 15,614 | 5.6 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total |
330,265 | 88.7 | % | 288,871 | 86.6 | % | 268,625 | 85.3 | % | 268,382 | 84.8 | % | 241,302 | 82.6 | % | 227,865 | 82.1 | % | ||||||||||||||||||||||||||||||
Consumer loans: |
||||||||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit |
39,770 | 10.7 | % | 42,344 | 12.7 | % | 45,162 | 14.3 | % | 46,928 | 14.8 | % | 49,455 | 16.9 | % | 47,423 | 17.1 | % | ||||||||||||||||||||||||||||||
Other consumer |
2,140 | 0.6 | % | 2,495 | 0.7 | % | 1,225 | 0.4 | % | 1,301 | 0.4 | % | 1,361 | 0.5 | % | 2,047 | 0.7 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total loans receivable |
372,175 | 100.0 | % | 333,710 | 100.0 | % | 315,012 | 100.0 | % | 316,611 | 100.0 | % | 292,118 | 100.0 | % | 277,335 | 100.0 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Less: net deferred loan origination fees |
540 | 589 | 519 | 476 | 418 | 517 | ||||||||||||||||||||||||||||||||||||||||||
Less: allowance for loan losses |
(3,092 | ) | (3,093 | ) | (3,008 | ) | (3,087 | ) | (3,741 | ) | (3,834 | ) | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Loans receivable, net |
$ | 369,623 | $ | 331,206 | $ | 312,523 | $ | 314,000 | $ | 288,795 | $ | 274,018 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
90
EXHIBIT 13
Loan Maturity Schedule
At June 30, 2018 and December 31, 2017
At June 30, 2018 | At December 31, 2017 | |||||||||||||||||||||||||||||||
Amounts due in: |
Residential Real Estate Loans |
Commercial Loans |
Consumer Loans |
Total | Residential Real Estate Loans |
Commercial Loans |
Consumer Loans |
Total | ||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
One year or less |
$ | 5,115 | $ | 32,022 | $ | 8,511 | $ | 45,648 | $ | 14,157 | $ | 48,281 | $ | 8,726 | $ | 71,164 | ||||||||||||||||
More than one year through five years |
17,075 | 110,976 | 28,910 | 156,961 | 19,908 | 92,278 | 16,596 | 128,782 | ||||||||||||||||||||||||
More than five years |
88,601 | 74,875 | 4,489 | 167,965 | 75,413 | 38,834 | 19,517 | 133,764 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | 110,791 | $ | 217,873 | $ | 41,910 | $ | 370,574 | $ | 109,478 | $ | 179,393 | $ | 44,839 | $ | 333,710 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed and Adjustable-Rate Loan Schedule
Due After June 30, 2019 | ||||||||||||
Fixed | Adjustable | Total | ||||||||||
(Dollars in thousands) | ||||||||||||
Residential real estate loans |
$ | 80,479 | $ | 29,231 | $ | 109,710 | ||||||
Commercial loans |
152,687 | 44,059 | 196,746 | |||||||||
Consumer loans |
13,900 | 20,563 | 34,463 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 247,066 | $ | 93,853 | $ | 340,919 | ||||||
|
|
|
|
|
|
|||||||
Due after December 31, 2018 | ||||||||||||
Fixed | Adjustable | Total | ||||||||||
(Dollars in thousands) | ||||||||||||
Residential real estate loans |
$ | 87,304 | $ | 21,974 | $ | 109,278 | ||||||
Commercial loans |
112,922 | 32,514 | 145,436 | |||||||||
Consumer loans |
31,628 | 1,179 | 32,807 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 231,854 | $ | 55,667 | $ | 287,521 | ||||||
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
91
EXHIBIT 14
Loans Delinquencies For
At June 30, 2018, and at December 31, 2015, 2016 and 2017
Loans Delinquent For | ||||||||||||||||
30-89 Days | 90 Days or More | |||||||||||||||
Number | Amount | Number | Amount | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
At June 30, 2018 |
||||||||||||||||
Residential real estate loans |
7 | $ | 906 | 12 | $ | 1,145 | ||||||||||
Commercial real estate loans |
1 | 152 | 7 | 328 | ||||||||||||
Commercial loans |
| | | | ||||||||||||
Consumer loans |
10 | 56 | 12 | 373 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
18 | $ | 1,114 | 31 | $ | 1,846 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2017 |
||||||||||||||||
Residential real estate loans |
22 | $ | 2,156 | 5 | $ | 56 | ||||||||||
Commercial real estate loans |
1 | 6 | 2 | 303 | ||||||||||||
Commercial loans |
| | | | ||||||||||||
Consumer loans |
22 | 528 | 5 | 125 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
45 | $ | 2,690 | 12 | $ | 484 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2016 |
||||||||||||||||
Residential real estate loans |
14 | $ | 1,789 | 4 | $ | 398 | ||||||||||
Commercial real estate loans |
1 | 369 | 2 | 479 | ||||||||||||
Commercial loans |
| | | | ||||||||||||
Consumer loans |
12 | 336 | 2 | 35 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
27 | $ | 2,494 | 8 | $ | 912 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2015 |
||||||||||||||||
Residential real estate loans |
18 | $ | 2,618 | 3 | $ | 208 | ||||||||||
Commercial real estate loans |
1 | 280 | 3 | 1,062 | ||||||||||||
Commercial loans |
1 | 13 | | | ||||||||||||
Consumer loans |
15 | 513 | 1 | 77 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
35 | $ | 3,424 | 7 | $ | 1,347 | ||||||||||
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
92
EXHIBIT 15
Nonperforming Assets
At June 30, 2018, and at December 31, 2013, 2014, 2015, 2016 and 2017
At June 30, 2018 |
At December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Nonaccrual loans: |
||||||||||||||||||||||||
Residential real estate loans |
$ | 1,145 | $ | 1,128 | $ | 1,681 | $ | 3,136 | $ | 2,820 | $ | 4,162 | ||||||||||||
Commercial loans |
328 | 335 | 827 | 1,510 | 1,514 | 5,458 | ||||||||||||||||||
Consumer |
372 | 423 | 488 | 7 | 675 | 1,117 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 1,845 | $ | 1,886 | $ | 2,996 | $ | 4,653 | $ | 5,009 | $ | 10,737 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accruing loans 90 days or more past due: |
||||||||||||||||||||||||
Residential real estate loans |
$ | | $ | | $ | | $ | | $ | | $ | 1 | ||||||||||||
Consumer |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total nonperforming loans |
$ | 1,845 | $ | 1,886 | $ | 2,996 | $ | 4,653 | $ | 5,009 | $ | 10,738 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other real estate owned |
$ | | $ | | $ | | $ | 5 | $ | 162 | $ | 1,905 | ||||||||||||
Other nonperforming assets |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total nonperforming assets |
$ | 1,845 | $ | 1,886 | $ | 2,996 | $ | 4,658 | $ | 5,171 | $ | 12,643 | ||||||||||||
Troubled debt restructurings (accruing): |
||||||||||||||||||||||||
Residential real estate loans |
$ | 337 | $ | 483 | $ | 395 | $ | 403 | $ | 411 | $ | 421 | ||||||||||||
Commercial loans |
242 | 246 | 427 | 441 | 271 | 302 | ||||||||||||||||||
Consumer |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 579 | $ | 729 | $ | 822 | $ | 844 | $ | 682 | $ | 723 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Troubled debt restructurings (accruing) and total nonperforming assets |
$ | 2,424 | $ | 2,615 | $ | 3,818 | $ | 5,502 | $ | 5,853 | $ | 13,366 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ratios: |
||||||||||||||||||||||||
Total nonperforming loans to total loans |
0.50 | % | 0.56 | % | 0.95 | % | 1.47 | % | 1.71 | % | 3.68 | % | ||||||||||||
Total nonperforming loans to total assets |
0.38 | % | 0.40 | % | 0.67 | % | 1.09 | % | 1.21 | % | 2.82 | % | ||||||||||||
Total nonperforming assets and troubled debt restructurings (accruing) to total assets |
0.50 | % | 0.56 | % | 0.85 | % | 1.29 | % | 1.41 | % | 3.11 | % |
Source: 1895 Bancorp of Wisconsin Inc.s Prospectus
93
EXHIBIT 16
Classified Assets
At June 30, 2018, and at December 31, 2015, 2016 and 2017
(Dollars in thousands)
At June 30, 2018 |
At December 31, | |||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||
Classification of assets: |
||||||||||||||||
Watch and special mention |
$ | 14,406 | $ | 14,964 | $ | 18,315 | $ | 12,871 | ||||||||
Substandard |
2,077 | 3,440 | 6,421 | 8,134 | ||||||||||||
Doubtful |
125 | 137 | 163 | 239 | ||||||||||||
Loss |
0 | 0 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total classified assets |
$ | 16,608 | $ | 18,541 | $ | 24,899 | $ | 21,244 | ||||||||
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
94
EXHIBIT 17
Allowance for Loan Losses
At for the Six Months Ended June 30, 2017 and 2018, and
For the Years Ended December 31, 2013, 2014, 2015, 2016 and 2017
Six Months Ended June 30, |
Years Ended December 31, | |||||||||||||||||||||||||||
2018 | 2017 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Allowance for loan losses at beginning of period |
$ | 3,093 | $ | 3,008 | $ | 3,008 | $ | 3,087 | $ | 3,741 | $ | 3,834 | $ | 5,374 | ||||||||||||||
Provision (credit) for loan losses |
| | | | (684 | ) | | (600 | ) | |||||||||||||||||||
Charge-offs: |
||||||||||||||||||||||||||||
Residential real estate loans |
| | | 89 | 218 | 110 | 356 | |||||||||||||||||||||
Commercial loans |
| | | 114 | | 209 | 677 | |||||||||||||||||||||
Consumer loans |
34 | 8 | 37 | 113 | 45 | 113 | 750 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total charge-offs |
34 | 8 | 37 | 316 | 263 | 432 | 1,783 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Recoveries: |
||||||||||||||||||||||||||||
Residential real estate loans |
3 | 5 | 21 | 51 | 10 | 36 | 89 | |||||||||||||||||||||
Commercial loans |
12 | 11 | 24 | 45 | 119 | 207 | 644 | |||||||||||||||||||||
Consumer loans |
18 | 32 | 77 | 141 | 164 | 96 | 110 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total recoveries |
33 | 48 | 122 | 237 | 293 | 339 | 843 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net charge-offs (recoveries) |
(1 | ) | 40 | 85 | (79 | ) | 30 | (93 | ) | (940 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for loan losses at end of period |
$ | 3,092 | $ | 3,048 | $ | 3,093 | $ | 3,008 | $ | 3,087 | $ | 3,741 | $ | 3,834 | ||||||||||||||
Ratios: |
| |||||||||||||||||||||||||||
Allowance for loan losses to nonperforming loans at end of period |
104.43 | % | 83.30 | % | 74.02 | % | 60.95 | % | 44.22 | % | 50.21 | % | 31.63 | % | ||||||||||||||
Allowance for loan losses to total loans outstanding at end of period |
0.83 | % | 0.95 | % | 0.93 | % | 0.95 | % | 0.97 | % | 1.28 | % | 1.38 | % | ||||||||||||||
Net charge-offs (recoveries) to average loans outstanding during period |
0.00 | % | 0.01 | % | 0.03 | % | (0.03 | )% | 0.01 | % | (0.03 | )% | (0.35 | )% |
Source: 1895 Bancorp of Wisconsin Inc.s Prospectus
95
EXHIBIT 18
Investment Portfolio Composition
At June 30, 2018 and at December 31, 2015, 2016 and 2017
At June 30, 2018 | At December 31, | |||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||
Security Type |
Amortized Cost |
Fair Value | Amortized Cost |
Fair Value | Amortized Cost |
Fair Value | Amortized Cost |
Fair Value | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions |
$ | 11,683 | $ | 11,431 | $ | 20,545 | $ | 20,630 | $ | 21,873 | $ | 21,964 | $ | 19,706 | $ | 20,130 | ||||||||||||||||
Government-sponsored mortgage-backed securities |
55,090 | 52,914 | 61,218 | 60,024 | 66,041 | 64,949 | 41,526 | 41,414 | ||||||||||||||||||||||||
Corporate collateralized mortgage obligations |
503 | 505 | 696 | 702 | 1,254 | 1,254 | 1,914 | 1,918 | ||||||||||||||||||||||||
Asset-backed securities |
4,193 | 4,205 | 4,835 | 4,832 | 5,623 | 5,524 | 6,976 | 6,820 | ||||||||||||||||||||||||
Corporate bonds |
| | 1,496 | 1,517 | 1,495 | 1,498 | 1,494 | 1,493 | ||||||||||||||||||||||||
Certificates of deposit |
249 | 245 | 1,246 | 1,251 | 1,244 | 1,269 | 1,242 | 1,235 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | 71,718 | $ | 69,300 | $ | 90,036 | $ | 88,956 | $ | 97,530 | $ | 96,458 | $ | 72,858 | $ | 73,010 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
96
EXHIBIT 19
Mix of Total Deposit Accounts
At June 30, 2018 and At December 31, 2015, 2016 and 2017
At December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
At June 30, 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Deposit type: | Average Balance |
Percent | Rate | Average Balance |
Percent | Rate | Average Balance |
Percent | Rate | Average Balance |
Percent | Rate | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand accounts |
$ | 56,851 | 14.05 | % | 0.00 | % | $ | 62,817 | 16.14 | % | 0.00 | % | $ | 57,092 | 15.91 | % | 0.00 | % | $ | 47,555 | 13.47 | % | 0.00 | % | ||||||||||||||||||||||||
NOW accounts |
27,042 | 6.68 | % | 0.16 | % | 26,649 | 6.85 | % | 0.12 | % | 27,236 | 7.59 | % | 0.17 | % | 29,595 | 8.38 | % | 0.18 | % | ||||||||||||||||||||||||||||
Money market accounts |
64,670 | 15.99 | % | 0.52 | % | 55,016 | 14.13 | % | 0.30 | % | 57,587 | 16.05 | % | 0.22 | % | 58,456 | 16.56 | % | 0.19 | % | ||||||||||||||||||||||||||||
Savings accounts |
57,266 | 14.16 | % | 0.13 | % | 58,566 | 15.04 | % | 0.10 | % | 59,770 | 16.65 | % | 0.15 | % | 53,285 | 15.10 | % | 0.16 | % | ||||||||||||||||||||||||||||
Certificates of deposit |
198,731 | 49.12 | % | 1.46 | % | 186,243 | 47.84 | % | 1.51 | % | 157,196 | 43.80 | % | 1.33 | % | 164,088 | 46.49 | % | 1.11 | % | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total deposits |
$ | 404,560 | 100.00 | % | 0.83 | % | $ | 389,291 | 100.00 | % | 0.79 | % | $ | 358,881 | 100.00 | % | 0.66 | % | $ | 352,979 | 100.00 | % | 0.59 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
97
EXHIBIT 20
Certificates of Deposit By Maturity
At June 30, 2018 and at December 31, 2017
At June 30, 2018 |
At December 31, 2017 |
|||||||
(In thousands) | ||||||||
Three months or less |
$ | 16,799 | $ | 4,509 | ||||
Over three months through six months |
14,608 | 5,088 | ||||||
Over six months through twelve months |
7,913 | 31,455 | ||||||
Over twelve months |
24,618 | 25,238 | ||||||
|
|
|
|
|||||
Total |
$ | 63,938 | $ | 66,290 | ||||
|
|
|
|
Source: | 1895 Bancorp of Wisconsin, Inc.s Prospectus |
98
EXHIBIT 21
Borrowed Funds
At or for the Six Months Ended June 30, 2017 and 2018, and
At or for the Years Ended December 31, 2016 and 2017
At or for the Six Months Ended June 30, |
At or for the Years Ended December 31, |
|||||||||||||||
2018 | 2017 | 2017 | 2016 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Maximum balance outstanding at any month-end during period |
$ | 50,388 | $ | 64,922 | $ | 64,922 | $ | 48,224 | ||||||||
Average balance outstanding during period |
$ | 40,391 | $ | 44,298 | $ | 38,635 | $ | 24,675 | ||||||||
Weighted average interest rate during period |
1.37 | % | 1.14 | % | 1.21 | % | 1.12 | % | ||||||||
Balance outstanding at end of period |
$ | 27,677 | $ | 29,709 | $ | 34,693 | $ | 48,224 | ||||||||
Weighted average interest rate at end of period |
1.53 | % | 1.22 | % | 1.31 | % | 1.21 | % |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
99
EXHIBIT 22
OFFICES OF PYRAMAX BANK, FSB
GREENFIELD, WISCONSIN
As of June 30, 2018
Location |
Year Opened |
Square Footage |
Owned or Leased |
Lease Expiration Date |
Net Book Value at June 30, 2018 |
|||||||||||||||
Corporate Office: |
||||||||||||||||||||
7001 West Edgerton Avenue Greenfield, Wisconsin 53220 |
1980 | 21,186 | Owned | N/A | $ | 1,403,356 | ||||||||||||||
Branch Offices: |
||||||||||||||||||||
9000 West Drexel Avenue Franklin, Wisconsin 53132 |
2004 | 3,930 | Owned | N/A | 794,201 | |||||||||||||||
1150 Washington Street Grafton, Wisconsin 53024 |
2016 | N/A | Leased | 4/1/2019 | 536 | |||||||||||||||
1605 West Mitchell Street Milwaukee, Wisconsin 53204 |
1967 | 4,242 | Owned | N/A | 688,196 | |||||||||||||||
318 North Water Street Milwaukee, Wisconsin 53202 |
2005 | 4,677 | Leased | 12/31/2019 | 520 | |||||||||||||||
405 Rivercrest Court Mukwonago, Wisconsin 53149 |
1999 | 3,097 | Owned | N/A | 484,122 | |||||||||||||||
1015 Marquette Avenue South Milwaukee, Wisconsin 53172 |
1972 | 3,942 | Owned | N/A | $ | 569,509 | ||||||||||||||
1500 East Moreland Avenue Waukesha, Wisconsin 53186 |
1969 | 4,546 | Owned | N/A | $ | 1,466,090 | ||||||||||||||
8001 West National Avenue West Allis, Wisconsin 53214 |
2008 | 4,238 | Owned | N/A | $ | 806,755 | ||||||||||||||
Total |
$ | 6,213,285 |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
100
EXHIBIT 23
DIRECTORS AND MANAGEMENT OF THE BANK
At June 30, 2018
Name |
Position |
Age | Director Since |
Term Expires |
||||||||||
Monica Baker |
Sr. Vice President/Chief Brand Officer, Director | 49 | 2006 | 2019 | ||||||||||
Darrell Francis |
Chairman of the Board | 66 | 1986 | 2020 | ||||||||||
Richard Hurd |
President and Chief Executive Officer, Director | 66 | 2004 | 2020 | ||||||||||
Joseph Murphy |
Director | 70 | 2005 | 2021 | ||||||||||
James Spiegelberg |
Director | 59 | 2006 | 2019 | ||||||||||
John Talsky |
Director | 69 | 2001 | 2020 | ||||||||||
Gary Zenobi |
Director | 72 | 1992 | 2021 | ||||||||||
|
||||||||||||||
Richard J. Krier |
Chief Financial Officer | | | | ||||||||||
Chuck Mauer |
Chief Credit Officer | | | | ||||||||||
Thomas K. Peterson |
Sr. Vice President/Chief Lending Officer | | | |
Source: 1895 Bancorp of Wisconsin, Inc.s Prospectus
101
EXHIBIT 24
Key Demographic Data and Trends
Milwaukee, Ozaukee and Waukesha Counties,
Wisconsin and the United States
2000, 2010 and 2020
2000 | 2010 | % Change | 2020 | % Change | ||||||||||||||||
Population |
||||||||||||||||||||
Milwaukee County |
940,164 | 947,735 | 0.8 | % | 951,408 | 0.4 | % | |||||||||||||
Ozaukee County |
82,317 | 86,395 | 5.0 | % | 90,247 | 4.5 | % | |||||||||||||
Waukesha County |
360,767 | 389,891 | 8.1 | % | 409,364 | 5.0 | % | |||||||||||||
Wisconsin |
5,363,675 | 5,686,986 | 6.0 | % | 5,887,190 | 3.5 | % | |||||||||||||
United States |
281,421,906 | 308,745,538 | 9.7 | % | 332,139,637 | 7.6 | % | |||||||||||||
Households |
||||||||||||||||||||
Milwaukee County |
377,729 | 383,591 | 1.6 | % | 388,428 | 1.3 | % | |||||||||||||
Ozaukee County |
30,857 | 34,228 | 10.9 | % | 35,806 | 4.6 | % | |||||||||||||
Waukesha County |
135,229 | 152,663 | 12.9 | % | 159,863 | 4.7 | % | |||||||||||||
Wisconsin |
2,084,544 | 2,279,768 | 9.4 | % | 2,363,096 | 3.7 | % | |||||||||||||
United States |
105,480,101 | 116,716,292 | 10.7 | % | 125,527,510 | 7.5 | % | |||||||||||||
Per Capita Income |
||||||||||||||||||||
Milwaukee County |
$ | 19,939 | $ | 24,254 | 21.6 | % | | | ||||||||||||
Ozaukee County |
31,947 | 42,180 | 32.0 | % | | | ||||||||||||||
Waukesha County |
29,164 | 37,282 | 27.8 | % | | | ||||||||||||||
Wisconsin |
21,271 | 27,192 | 27.8 | % | | | ||||||||||||||
United States |
22,162 | 26,059 | 17.6 | % | | | ||||||||||||||
Median Household Income |
||||||||||||||||||||
Milwaukee County |
$ | 38,100 | $ | 43,599 | 14.4 | % | $ | 49,722 | 14.0 | % | ||||||||||
Ozaukee County |
62,745 | 75,854 | 20.9 | % | 86,937 | 14.6 | % | |||||||||||||
Waukesha County |
62,839 | 75,689 | 20.4 | % | 84,386 | 11.5 | % | |||||||||||||
Wisconsin |
43,791 | 52,374 | 19.6 | % | 57,579 | 9.9 | % | |||||||||||||
United States |
41,994 | 50,046 | 19.2 | % | 61,618 | 23.1 | % |
Source: U.S. Census and Business Decision
102
EXHIBIT 25
Key Housing Data
Milwaukee, Ozaukee and Waukesha Counties,
Wisconsin and the United States
2000 & 2010
2000 | 2010 | |||||||||
Occupied Housing Units |
||||||||||
Milwaukee County |
377,729 | 383,591 | ||||||||
Ozaukee County |
30,857 | 34,228 | ||||||||
Waukesha County |
135,229 | 152,663 | ||||||||
Wisconsin |
2,084,544 | 2,279,768 | ||||||||
United States |
105,480,101 | 116,716,292 | ||||||||
Occupancy Rate |
| |||||||||
Milwaukee County |
||||||||||
Owner-Occupied | 52.6 | % | 51.3 | % | ||||||
Renter-Occupied | 47.4 | % | 48.7 | % | ||||||
Ozaukee County |
||||||||||
Owner-Occupied | 76.3 | % | 76.7 | % | ||||||
Renter-Occupied | 23.7 | % | 23.3 | % | ||||||
Waukesha County |
||||||||||
Owner-Occupied | 76.4 | % | 76.8 | % | ||||||
Renter-Occupied | 23.6 | % | 23.2 | % | ||||||
Wisconsin |
||||||||||
Owner-Occupied | 68.4 | % | 68.1 | % | ||||||
Renter-Occupied | 31.6 | % | 31.9 | % | ||||||
United States |
||||||||||
Owner-Occupied | 66.2 | % | 65.4 | % | ||||||
Renter-Occupied | 33.8 | % | 34.6 | % | ||||||
Median Housing Values |
| |||||||||
Milwaukee County |
$ | 103,200 | $ | 162,900 | ||||||
Ozaukee County |
177,300 | 255,600 | ||||||||
Waukesha County |
170,400 | 257,700 | ||||||||
Wisconsin |
112,200 | 169,000 | ||||||||
United States |
119,600 | 186,200 | ||||||||
Median Rent |
||||||||||
Milwaukee County |
$ | 555 | $ | 786 | ||||||
Ozaukee County |
642 | 819 | ||||||||
Waukesha County |
726 | 906 | ||||||||
Wisconsin |
540 | 749 | ||||||||
United States |
602 | 871 |
Source: U.S. Census Bureau
103
EXHIBIT 26
Major Sources of Employment by Industry Group
Milwaukee, Ozaukee and Waukesha Counties
Wisconsin and the United States
2000 and 2010
2000 | ||||||||||||||||||||
Industry Group |
Milwaukee County |
Ozaukee County |
Waukesha County |
Wisconsin | United States |
|||||||||||||||
Agriculture/Mining |
0.3 | % | 1.0 | % | 0.4 | % | 2.8 | % | 1.9 | % | ||||||||||
Construction |
4.0 | % | 4.3 | % | 6.3 | % | 5.9 | % | 6.8 | % | ||||||||||
Manufacturing |
18.5 | % | 23.7 | % | 21.2 | % | 22.2 | % | 14.1 | % | ||||||||||
Wholesale/Retail |
13.6 | % | 14.5 | % | 16.6 | % | 14.8 | % | 15.3 | % | ||||||||||
Transportation/Utilities |
5.3 | % | 2.9 | % | 4.1 | % | 4.5 | % | 5.2 | % | ||||||||||
Information |
3.0 | % | 2.5 | % | 3.1 | % | 2.2 | % | 3.1 | % | ||||||||||
Finance, Insurance & Real Estate |
7.7 | % | 8.0 | % | 7.7 | % | 6.1 | % | 6.9 | % | ||||||||||
Services |
47.6 | % | 43.1 | % | 40.6 | % | 41.5 | % | 46.7 | % |
2010 | ||||||||||||||||||||
Milwaukee County |
Ozaukee County |
Waukesha County |
Wisconsin | United States |
||||||||||||||||
Agriculture/Mining |
0.6 | % | 1.4 | % | 0.5 | % | 2.4 | % | 1.9 | % | ||||||||||
Construction |
3.6 | % | 4.4 | % | 5.6 | % | 5.6 | % | 6.2 | % | ||||||||||
Manufacturing |
15.0 | % | 18.9 | % | 18.2 | % | 18.4 | % | 10.4 | % | ||||||||||
Wholesale/Retail |
12.9 | % | 13.2 | % | 15.8 | % | 14.2 | % | 14.5 | % | ||||||||||
Transportation/Utilities |
4.6 | % | 2.6 | % | 3.9 | % | 4.5 | % | 4.9 | % | ||||||||||
Information |
2.2 | % | 1.9 | % | 1.9 | % | 1.8 | % | 2.2 | % | ||||||||||
Finance, Insurance & Real Estate |
7.3 | % | 8.5 | % | 8.6 | % | 6.3 | % | 6.7 | % | ||||||||||
Services |
54.1 | % | 49.1 | % | 45.5 | % | 46.8 | % | 53.2 | % |
Source: Bureau of the Census
104
EXHIBIT 27
Unemployment Rates
Milwaukee Ozaukee and Waukesha Counties,
Wisconsin and the United States
For the Years 2014 through May of 2018
Location |
2014 | 2015 | 2016 | 2017 | May 2018 |
|||||||||||||||
Milwaukee County |
6.9 | % | 5.7 | % | 5.0 | % | 4.0 | % | 3.2 | % | ||||||||||
Ozaukee County |
4.2 | % | 3.7 | % | 3.3 | % | 2.8 | % | 2.3 | % | ||||||||||
Waukesha County |
4.4 | % | 3.8 | % | 3.4 | % | 2.9 | % | 2.4 | % | ||||||||||
Wisconsin |
5.4 | % | 4.5 | % | 4.0 | % | 3.3 | % | 2.6 | % | ||||||||||
United States |
6.2 | % | 5.3 | % | 4.9 | % | 4.4 | % | 3.6 | % |
Source: Local Area Unemployment StatisticsU.S. Bureau of Labor Statistics
105
EXHIBIT 28
Market Share of Deposits
Milwaukee, Ozaukee and Waukesha Counties
June 30, 2017
Milwaukee County Deposits ($000) |
Pyramaxs Deposits ($000) |
Pyramaxs Share (%) |
||||||||||
Banks |
$ | 50,731,896 | | | ||||||||
Thrifts |
2,636,079 | $ | 277,017 | 10.5 | % | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | 53,367,975 | $ | 277,017 | 0.5 | % | ||||||
Ozaukee County Deposits ($000) |
Pyramaxs Deposits ($000) |
Pyramaxs Share (%) |
||||||||||
Banks |
$ | 2,342,678 | | | ||||||||
Thrifts |
200,451 | $ | 31,972 | 16.0 | % | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | 2,543,129 | $ | 31,972 | 1.3 | % | ||||||
Waukesha County Deposits ($000) |
Pyramaxs Deposits ($000) |
Pyramaxs Share (%) |
||||||||||
Banks |
$ | 10,419,566 | | | ||||||||
Thrifts |
1,544,580 | $ | 74,463 | 4.8 | % | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | 11,964,146 | $ | 74,463 | 0.6 | % | ||||||
Total Deposits ($000) |
Pyramaxs Deposits ($000) |
Pyramaxs Share (%) |
||||||||||
Banks |
$ | 63,494,140 | | | ||||||||
Thrifts |
4,381,110 | $ | 383,452 | 8.8 | % | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | 67,875,250 | $ | 383,452 | 0.6 | % |
Source: FDIC
106
EXHIBIT 29
National Interest Rates by Quarter
2014 - 2nd Quarter of 2018
1st Qtr. 2014 |
2nd Qtr. 2014 |
3rd Qtr. 2014 |
4th Qtr. 2014 |
|||||||||||||
Prime Rate |
3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % | ||||||||
90-Day Treasury Bills |
0.05 | % | 0.04 | % | 0.13 | % | 0.07 | % | ||||||||
1-Year Treasury Bills |
0.13 | % | 0.11 | % | 0.14 | % | 0.13 | % | ||||||||
30-Year Treasury Notes |
3.56 | % | 3.34 | % | 3.07 | % | 2.75 | % | ||||||||
1st Qtr. 2015 |
2nd Qtr. 2015 |
3rd Qtr. 2015 |
4th Qtr. 2015 |
|||||||||||||
Prime Rate |
3.25 | % | 3.25 | % | 3.25 | % | 3.50 | % | ||||||||
90-Day Treasury Bills |
0.03 | % | 0.01 | % | 0.01 | % | 0.16 | % | ||||||||
1-Year Treasury Bills |
0.26 | % | 0.28 | % | 0.32 | % | 0.62 | % | ||||||||
30-Year Treasury Notes |
2.54 | % | 3.20 | % | 2.87 | % | 3.01 | % | ||||||||
1st Qtr. 2016 |
2nd Qtr. 2016 |
3rd Qtr. 2016 |
4th Qtr. 2016 |
|||||||||||||
Prime Rate |
3.50 | % | 3.50 | % | 3.50 | % | 3.75 | % | ||||||||
90-Day Treasury Bills |
0.24 | % | 0.30 | % | 0.32 | % | 0.51 | % | ||||||||
1-Year Treasury Bills |
0.53 | % | 0.58 | % | 0.57 | % | 0.81 | % | ||||||||
30-Year Treasury Notes |
2.61 | % | 2.26 | % | 2.40 | % | 2.97 | % | ||||||||
1st Qtr. 2017 |
2nd Qtr. 2017 |
3rd Qtr. 2017 |
4th Qtr. 2017 |
|||||||||||||
Prime Rate |
4.00 | % | 4.25 | % | 4.25 | % | 4.50 | % | ||||||||
90-Day Treasury Bills |
0.92 | % | 1.01 | % | 1.04 | % | 1.37 | % | ||||||||
1-Year Treasury Bills |
1.17 | % | 1.24 | % | 1.31 | % | 1.76 | % | ||||||||
30-Year Treasury Notes |
2.92 | % | 2.84 | % | 2.86 | % | 2.74 | % | ||||||||
1st Qtr. 2018 |
2nd Qtr. 2018 |
|||||||||||||||
Prime Rate |
4.75 | % | 5.00 | % | ||||||||||||
90-Day Treasury Bills |
1.74 | % | 1.89 | % | ||||||||||||
1-Year Treasury Bills |
2.09 | % | 2.33 | % | ||||||||||||
30-Year Treasury Notes |
2.97 | % | 2.98 | % |
Source: The Wall Street Journal
107
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 30
Page 1 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
State |
Exchange |
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||||||||
SZBI |
SOUTHFIRST BANCSHARES |
AL | OTC PINK | 4.95 | (1.4 | ) | 0.37 | 125.38 | 0.00 | 13.38 | 9.90 | 35.69 | 35.69 | 3.95 | ||||||||||||||||||||||||||||||||
BOFI |
BOFI HOLDING |
CA | NASDAQ | 40.91 | 72.5 | 2.36 | 159.58 | 0.00 | 17.33 | 34.67 | 277.73 | 280.78 | 25.64 | |||||||||||||||||||||||||||||||||
BYFC |
BROADWAY FINANCIAL CORP |
CA | NASDAQ | 2.20 | 4.3 | 0.07 | 14.57 | 0.00 | 31.43 | 31.43 | 127.17 | 127.17 | 15.10 | |||||||||||||||||||||||||||||||||
MLGF |
MALAGA FINANCIAL CORPORATION |
CA | OTC BB | 31.25 | 20.2 | 2.30 | 165.37 | 1.00 | 13.59 | 14.33 | 153.56 | 153.56 | 18.90 | |||||||||||||||||||||||||||||||||
PROV |
PROVIDENT FINANCIAL HOLDINGS |
CA | NASDAQ | 19.08 | (0.9 | ) | 0.23 | 157.70 | 0.55 | 82.96 | 48.92 | 118.07 | 118.95 | 12.10 | ||||||||||||||||||||||||||||||||
FBNK |
FIRST CONNECTICUT BANCORP |
CT | NASDAQ | 30.60 | 19.3 | 1.07 | 196.31 | 0.57 | 28.60 | 21.40 | 176.67 | 180.21 | 15.59 | |||||||||||||||||||||||||||||||||
SIFI |
SI FINANCIAL GROUP |
CT | NASDAQ | 14.75 | (8.4 | ) | 0.45 | 130.55 | 0.21 | 32.78 | 23.05 | 106.88 | 119.43 | 11.30 | ||||||||||||||||||||||||||||||||
UBNK |
UNITED FINANCIAL BANCORP |
CT | NASDAQ | 17.52 | 5.0 | 1.11 | 139.05 | 0.36 | 15.78 | 14.60 | 128.92 | 159.42 | 12.60 | |||||||||||||||||||||||||||||||||
WSFS |
WSFS FINANCIAL CORP |
DE | NASDAQ | 53.30 | 17.5 | 2.15 | 218.35 | 0.32 | 24.79 | 19.96 | 228.56 | 305.44 | 24.41 | |||||||||||||||||||||||||||||||||
ABCB |
AMERIS BANCORP |
GA | NASDAQ | 53.35 | 10.7 | 2.06 | 209.33 | 0.40 | 25.90 | 21.51 | 235.33 | 319.08 | 25.49 | |||||||||||||||||||||||||||||||||
CHFN |
CHARTER FINANCIAL CORP |
GA | NASDAQ | 24.15 | 34.2 | 1.04 | 109.65 | 0.28 | 23.22 | 22.78 | 164.96 | 206.23 | 22.02 | |||||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
GA | NASDAQ | 11.11 | NM | 0.01 | 38.80 | 0.00 | NM | 92.58 | 110.66 | 110.66 | 28.63 | |||||||||||||||||||||||||||||||||
TBNK |
TERRITORIAL BANCORP |
HI | NASDAQ | 31.00 | (0.6 | ) | 1.59 | 211.19 | 1.20 | 19.50 | 19.38 | 129.87 | 129.98 | 14.68 | ||||||||||||||||||||||||||||||||
WCFB |
WCF BANCORP |
IA | NASDAQ | 9.00 | NM | 0.09 | 48.57 | 0.20 | 100.00 | NM | 82.19 | 82.42 | 18.53 | |||||||||||||||||||||||||||||||||
AJSB |
AJS BANCORP |
IL | OTC BB | 14.05 | (4.4 | ) | 0.05 | 90.18 | 0.20 | NM | 48.45 | 103.77 | 103.77 | 15.58 | ||||||||||||||||||||||||||||||||
AFBA |
ALLIED FIRST BANCORP |
IL | OTC BB | 1.35 | (10.0 | ) | (0.19 | ) | 61.54 | 0.00 | NM | 2.76 | NM | NM | 2.19 | |||||||||||||||||||||||||||||||
BFFI |
BEN FRANKLIN FINANCIAL |
IL | OTC BB | 8.25 | (29.8 | ) | (0.47 | ) | 79.96 | 0.00 | NM | NM | 101.10 | 101.10 | 10.32 | |||||||||||||||||||||||||||||||
BTHT |
BEST HOMETOWN BANCORP |
IL | OTC PINK | 13.50 | NM | (0.39 | ) | 130.66 | 0.00 | NM | NM | 91.53 | 91.53 | 10.33 | ||||||||||||||||||||||||||||||||
GTPS |
GREAT AMERICAN BANCORP |
IL | OTC BB | 31.85 | 8.9 | 1.49 | 412.87 | 0.42 | 21.38 | 16.09 | 81.56 | 87.60 | 7.71 | |||||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
IL | NASDAQ | 23.90 | 21.5 | 0.48 | 159.15 | 0.10 | 49.79 | 44.26 | 113.97 | 115.07 | 15.02 | |||||||||||||||||||||||||||||||||
JXSB |
JACKSONVILLE BANCORP |
IL | NASDAQ | 33.65 | 7.0 | 1.61 | 178.23 | 0.40 | 20.90 | 16.83 | 127.80 | 137.23 | 18.88 | |||||||||||||||||||||||||||||||||
MCPH |
MIDLAND CAPITAL HOLDINGS CORP |
IL | OTC PINK | 24.00 | 26.1 | 0.25 | 315.57 | 0.16 | 96.00 | 70.59 | 82.36 | 82.36 | 7.61 | |||||||||||||||||||||||||||||||||
OTTW |
OTTAWA SAVINGS BANCORP |
IL | OTC BB | 13.88 | 0.8 | 0.29 | 78.35 | 0.24 | 47.86 | 25.24 | 92.47 | 95.00 | 17.72 |
108
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 2 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
State |
Exchange |
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||||||||
RYFL |
ROYAL FINANCIAL |
IL | OTC BB | 17.45 | 46.3 | 1.15 | 171.47 | 0.00 | 15.17 | 10.71 | 96.78 | 103.68 | 10.18 | |||||||||||||||||||||||||||||||||
SUGR |
SUGAR CREEK FINANCIAL CORP |
IL | OTC BB | 12.60 | (10.0 | ) | 0.19 | 115.70 | 0.00 | 66.32 | 74.12 | 95.09 | 95.09 | 10.89 | ||||||||||||||||||||||||||||||||
FDLB |
FIDELITY FEDERAL BANCORP |
IN | OTC PINK | 25.00 | NM | 20.40 | 842.48 | 0.00 | 1.23 | 2.54 | NM | NM | 2.97 | |||||||||||||||||||||||||||||||||
FCAP |
FIRST CAPITAL |
IN | NASDAQ | 41.55 | 33.4 | 2.21 | 228.00 | 0.88 | 18.80 | 18.07 | 175.32 | 193.71 | 18.22 | |||||||||||||||||||||||||||||||||
NWIN |
NORTHWEST INDIANA BANCORP |
IN | OTC BB | 42.95 | 6.0 | 3.15 | 320.86 | 1.15 | 13.63 | 15.18 | 139.72 | 144.95 | 13.39 | |||||||||||||||||||||||||||||||||
TDCB |
THIRD CENTURY BANCORP |
IN | OTC BB | 13.95 | 13.4 | 0.45 | 107.52 | 0.22 | 31.00 | 25.83 | 128.69 | 130.37 | 12.97 | |||||||||||||||||||||||||||||||||
UCBA |
UNITED COMMUNITY BANCORP |
IN | NASDAQ | 27.20 | 43.5 | 0.85 | 130.00 | 0.39 | 32.00 | 27.47 | 161.14 | 169.47 | 20.92 | |||||||||||||||||||||||||||||||||
WEIN |
WEST END INDIANA BANCSHARES |
IN | OTC BB | 29.00 | (0.2 | ) | 0.66 | 289.03 | 0.21 | 43.94 | 23.20 | 109.27 | 112.45 | 10.03 | ||||||||||||||||||||||||||||||||
CFFN |
CAPITOL FEDERAL FINANCIAL |
KS | NASDAQ | 13.16 | (7.4 | ) | 0.70 | 66.06 | 0.89 | 18.80 | 21.57 | 133.33 | 133.33 | 19.92 | ||||||||||||||||||||||||||||||||
PBSK |
POAGE BANKSHARES |
KY | NASDAQ | 19.66 | 3.2 | (0.72 | ) | 128.62 | 0.24 | NM | NM | 112.92 | 118.29 | 15.29 | ||||||||||||||||||||||||||||||||
CTUY |
CENTURY NEXT FINANCIAL CORP |
LA | OTC BB | 34.00 | 17.2 | 2.48 | 276.01 | 0.14 | 13.71 | 11.81 | 133.54 | 133.54 | 12.32 | |||||||||||||||||||||||||||||||||
FPBF |
FPB FINANCIAL CORP |
LA | OTC PINK | 19.75 | 7.6 | 0.93 | 137.68 | 0.21 | 21.24 | 19.36 | 144.90 | 145.22 | 14.34 | |||||||||||||||||||||||||||||||||
HRGG |
HERITAGE NOLA BANCORP |
LA | OTC PINK | 12.48 | NM | 0.33 | 68.05 | 0.00 | 37.82 | 36.71 | 85.13 | 86.31 | 18.34 | |||||||||||||||||||||||||||||||||
HIBE |
HIBERNIA BANCORP |
LA | OTC BB | 31.90 | 71.5 | 0.17 | 126.03 | 0.00 | NM | NM | 176.05 | 176.05 | 25.31 | |||||||||||||||||||||||||||||||||
HFBL |
HOME FED BANCORP OF LOUISIANA |
LA | NASDAQ | 31.45 | 16.7 | 1.93 | 216.37 | 0.45 | 16.30 | 13.79 | 129.32 | 129.80 | 14.54 | |||||||||||||||||||||||||||||||||
BHBK |
BLUE HILLS BANCORP |
MA | NASDAQ | 22.20 | 24.0 | 0.58 | 99.43 | 0.90 | 38.28 | 33.64 | 150.82 | 155.14 | 22.33 | |||||||||||||||||||||||||||||||||
BLMT |
BSB BANCORP INC. |
MA | NASDAQ | 34.40 | 17.6 | 1.72 | 282.09 | 0.00 | 20.00 | 16.78 | 181.53 | 182.59 | 12.19 | |||||||||||||||||||||||||||||||||
HONE |
HARBORONE BANCORP |
MA | NASDAQ | 18.94 | (5.1 | ) | 0.34 | 82.66 | 0.00 | 55.71 | 61.10 | 179.19 | 200.42 | 22.91 | ||||||||||||||||||||||||||||||||
HIFS |
HINGHAM INSTITUTION FOR SAVINGS |
MA | NASDAQ | 219.70 | 20.8 | 13.39 | 1,050.38 | 1.00 | 16.41 | 16.17 | 251.69 | 251.69 | 20.92 | |||||||||||||||||||||||||||||||||
EBSB |
MERIDIAN BANCORP |
MA | NASDAQ | 19.15 | 13.3 | 0.85 | 101.00 | 0.18 | 22.53 | 22.01 | 157.87 | 163.68 | 18.96 | |||||||||||||||||||||||||||||||||
PLRM |
PILGRIM BANCSHARES |
MA | OTC BB | 20.15 | 8.9 | 0.58 | 116.00 | 0.30 | 34.74 | 28.38 | 134.69 | 134.69 | 17.37 | |||||||||||||||||||||||||||||||||
PVBC |
PROVIDENT BANCORP |
MA | NASDAQ | 26.20 | 16.4 | 0.84 | 92.51 | 0.00 | 31.19 | 39.10 | 214.93 | 214.93 | 28.32 | |||||||||||||||||||||||||||||||||
RNDB |
RANDOLPH BANCORP |
MA | NASDAQ | 16.80 | 5.7 | (0.37 | ) | 88.48 | 0.00 | NM | NM | 126.79 | 138.39 | 18.99 |
109
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 3 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
State |
Exchange |
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/ Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||||||||
WEBK |
WELLESLEY BANCORP |
MA | NASDAQ | 33.83 | 22.1 | 1.98 | 326.98 | 0.20 | 17.09 | 14.04 | 141.08 | 141.31 | 10.35 | |||||||||||||||||||||||||||||||||
WNEB |
WESTERN NEW ENGLAND BANCORP |
MA | NASDAQ | 11.00 | 8.4 | 0.36 | 69.20 | 0.13 | 30.56 | 21.57 | 136.65 | 146.86 | 15.90 | |||||||||||||||||||||||||||||||||
IFSB |
COLOMBO BANK |
MD | OTC PINK | 0.10 | (75.0 | ) | 0.80 | 125.42 | 0.00 | 0.13 | 0.12 | NM | NM | 0.08 | ||||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
MD | NASDAQ | 15.70 | 4.7 | (0.18 | ) | 154.29 | 0.00 | NM | 31.40 | 104.53 | 127.33 | 10.18 | ||||||||||||||||||||||||||||||||
MBCQ |
MB BANCORP |
MD | OTC BB | 16.60 | 10.3 | 0.01 | 7.65 | 0.00 | NM | NM | NM | NM | NM | |||||||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
MD | NASDAQ | 8.65 | 19.3 | 0.31 | 65.42 | 0.03 | 27.90 | 17.65 | 114.57 | 116.73 | 13.22 | |||||||||||||||||||||||||||||||||
FBC |
FLAGSTAR BANCORP |
Ml | NYSE | 34.26 | 11.2 | 1.33 | 308.99 | 0.00 | 25.76 | 12.32 | 137.81 | 176.14 | 11.09 | |||||||||||||||||||||||||||||||||
NWBB |
NEW BANCORP |
Ml | OTC BB | 19.50 | 38.4 | 1.79 | 168.95 | 0.00 | 10.89 | 10.54 | 90.82 | 97.60 | 11.54 | |||||||||||||||||||||||||||||||||
SBT |
STERLING BANCORP |
Ml | NASDAQ | 13.36 | NM | 0.81 | 57.31 | 0.06 | 16.49 | 14.68 | 245.59 | 253.03 | 23.31 | |||||||||||||||||||||||||||||||||
STBI |
STURGIS BANCORP |
Ml | OTC BB | 19.10 | 15.8 | 1.44 | 182.13 | 0.50 | 13.26 | 14.15 | 117.25 | 143.29 | 10.49 | |||||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
MN | NASDAQ | 20.10 | 14.5 | 1.12 | 160.31 | 0.00 | 17.95 | 15.83 | 110.32 | 114.33 | 12.54 | |||||||||||||||||||||||||||||||||
REDW |
REDWOOD FINANCIAL |
MN | OTC PINK | 54.00 | 20.0 | 7.39 | 673.00 | 0.45 | 7.31 | 8.49 | 68.01 | 81.30 | 8.02 | |||||||||||||||||||||||||||||||||
CCFC |
CCSB FINANCIAL CORP |
MO | OTC PINK | 13.20 | 9.1 | 0.53 | 107.56 | 0.10 | 24.91 | 24.91 | 112.82 | 113.50 | 12.27 | |||||||||||||||||||||||||||||||||
CFDB |
CENTRAL FEDERAL S&L ASSN OF ROLLA |
MO | OTC PINK | 14.40 | 8.7 | 0.07 | 40.54 | 0.00 | NM | NM | 92.72 | 92.72 | 35.52 | |||||||||||||||||||||||||||||||||
NASB |
NASB FINANCIAL |
MO | OTC BB | 41.19 | 13.6 | 3.66 | 258.71 | 1.46 | 11.25 | 11.22 | 135.81 | 146.12 | 15.92 | |||||||||||||||||||||||||||||||||
QRRY |
QUARRY CITY S&L ASSN |
MO | OTC BB | 15.50 | 5.1 | 0.67 | 131.58 | 0.00 | 23.13 | 20.13 | 72.60 | 74.95 | 11.78 | |||||||||||||||||||||||||||||||||
KSBI |
KS BANCORP |
NC | OTC BB | 28.00 | 18.4 | 1.92 | 286.67 | 0.17 | 14.58 | 10.89 | 105.26 | 105.26 | 9.77 | |||||||||||||||||||||||||||||||||
LSFG |
LIFESTORE FINANCIAL GROUP |
NC | OTC PINK | 26.00 | 18.2 | 1.83 | 272.02 | 0.00 | 14.21 | 12.32 | 95.80 | 98.75 | 9.56 | |||||||||||||||||||||||||||||||||
UBNC |
UNION BANK |
NC | OTC PINK | 16.40 | NM | 0.60 | 121.63 | 0.09 | 27.33 | 19.76 | 129.85 | 166.16 | 13.48 | |||||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
NE | NASDAQ | 10.76 | 5.0 | 0.34 | 92.12 | 0.00 | 31.65 | 26.90 | 100.09 | 106.96 | 11.68 | |||||||||||||||||||||||||||||||||
MCBK |
MADISON COUNTY FINANCIAL |
NE | OTC PINK | 26.00 | 13.0 | 1.24 | 122.58 | 0.40 | 20.97 | 16.15 | 119.43 | 124.58 | 21.21 | |||||||||||||||||||||||||||||||||
ISBC |
INVESTORS BANCORP |
NJ | NASDAQ | 12.79 | (4.8 | ) | 0.46 | 83.61 | 0.34 | 27.80 | 20.30 | 124.78 | 129.06 | 15.30 | ||||||||||||||||||||||||||||||||
KRNY |
KEARNY FINANCIAL CORP |
NJ | NASDAQ | 13.45 | (9.4 | ) | 0.21 | 62.64 | 0.24 | 64.05 | 56.04 | 106.92 | 120.09 | 21.47 |
110
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 4 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
State |
Exchange |
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/ Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||||||||
MGYR |
MAGYAR BANCORP |
NJ | NASDAQ | 12.88 | (1.8 | ) | 0.28 | 104.42 | 0.00 | 46.00 | 33.03 | 149.94 | 149.94 | 12.33 | ||||||||||||||||||||||||||||||||
MSBF |
MB BANCORP |
NJ | NASDAQ | 21.50 | 23.2 | 0.60 | 102.09 | 0.43 | 35.83 | 27.92 | 170.23 | 170.23 | 21.06 | |||||||||||||||||||||||||||||||||
NFBK |
NORTHFIELD BANCORP |
NJ | NASDAQ | 16.62 | (3.1 | ) | 0.51 | 82.83 | 0.36 | 32.59 | 22.46 | 126.97 | 135.34 | 20.07 | ||||||||||||||||||||||||||||||||
OCFC |
OCEANFIRST FINANCIAL CORP |
NJ | NASDAQ | 29.96 | 10.5 | 0.75 | 155.93 | 0.60 | 39.95 | 33.29 | 143.08 | 221.76 | 19.21 | |||||||||||||||||||||||||||||||||
ORIT |
ORITANI FINANCIAL CORP |
NJ | NASDAQ | 16.20 | (5.0 | ) | 0.69 | 88.89 | 1.23 | 23.48 | 17.80 | 136.13 | 136.13 | 18.22 | ||||||||||||||||||||||||||||||||
PFS |
PROVIDENT FINANCIAL SERVICES |
NJ | NYSE | 27.53 | 8.5 | 1.47 | 145.88 | 0.94 | 18.73 | 17.88 | 140.75 | 207.46 | 18.87 | |||||||||||||||||||||||||||||||||
BCTF |
BANCORP 34 |
NM | NASDAQ | 15.45 | 10.0 | 0.35 | 100.58 | 0.00 | 44.14 | 15.45 | 105.53 | 106.40 | 15.36 | |||||||||||||||||||||||||||||||||
CARV |
CARVER BANCORP |
NY | NASDAQ | 4.63 | 36.2 | 2.66 | 187.71 | 0.00 | 1.74 | NM | NM | NM | 2.47 | |||||||||||||||||||||||||||||||||
DCOM |
DIME COMMUNITY BANCSHARES |
NY | NASDAQ | 19.50 | (0.5 | ) | 1.48 | 168.76 | 0.56 | 13.18 | 15.35 | 120.22 | 132.74 | 11.55 | ||||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
NY | NASDAQ | 20.43 | 0.6 | 1.85 | 209.33 | 0.46 | 11.04 | 17.03 | 94.93 | 125.18 | 9.76 | |||||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
NY | NASDAQ | 17.75 | 20.3 | 0.37 | 161.16 | 0.00 | 47.97 | 43.29 | 110.04 | 113.27 | 11.01 | |||||||||||||||||||||||||||||||||
NYCB |
NEW YORK COMMUNITY BANCORP |
NY | NYSE | 11.04 | (15.9 | ) | 0.96 | 101.26 | 0.68 | 11.50 | 13.97 | 79.83 | 124.75 | 10.90 | ||||||||||||||||||||||||||||||||
PCSB |
PCSB FINANCIAL CORP |
NY | NASDAQ | 19.87 | NM | 0.22 | 80.19 | 0.00 | 90.32 | 64.10 | 126.80 | 129.78 | 24.78 | |||||||||||||||||||||||||||||||||
PDLB |
PDL COMMUNITY BANCORP |
NY | NASDAQ | 15.71 | NM | 0.08 | 51.34 | 0.00 | NM | NM | 174.94 | 174.94 | 30.60 | |||||||||||||||||||||||||||||||||
SNNF |
SENECA FIN CORP |
NY | OTC PINK | 8.55 | NM | 0.29 | 92.13 | 0.00 | 29.48 | 21.38 | 92.23 | 92.23 | 9.28 | |||||||||||||||||||||||||||||||||
SNNY |
SUNNYSIDE BANCORP |
NY | OTC BB | 16.12 | 19.0 | (0.40 | ) | 106.37 | 0.00 | NM | NM | 123.24 | 123.24 | 15.15 | ||||||||||||||||||||||||||||||||
TRST |
TRUSTCO BANK CORP NY |
NY | NASDAQ | 8.90 | 14.8 | 0.49 | 51.17 | 0.26 | 18.16 | 16.48 | 185.42 | 185.80 | 17.39 | |||||||||||||||||||||||||||||||||
CNNB |
CINCINNATI BANCORP |
OH | OTC BB | 12.85 | 31.8 | 0.58 | 99.86 | 0.00 | 22.16 | 32.13 | 115.35 | 121.80 | 12.87 | |||||||||||||||||||||||||||||||||
CCSB |
COMM SAVINGS BANCORP |
OH | OTC BB | 14.60 | NM | (0.21 | ) | 118.20 | 0.00 | NM | NM | 71.53 | 71.53 | 12.35 | ||||||||||||||||||||||||||||||||
CIBN |
COMMUNITY INVESTORS BANCORP |
OH | OTC PINK | 15.50 | 2.3 | 1.89 | 274.54 | 0.30 | 8.20 | 10.62 | 62.70 | 65.65 | 5.65 | |||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
OH | NASDAQ | 16.35 | NM | 0.41 | 81.94 | 0.00 | 39.88 | 65.40 | 95.89 | 95.89 | 19.95 | |||||||||||||||||||||||||||||||||
FDEF |
FIRST DEFIANCE FINANCIAL CORP |
OH | NASDAQ | 67.06 | 27.3 | 3.82 | 296.90 | 1.05 | 17.55 | 17.19 | 180.08 | 257.23 | 22.59 | |||||||||||||||||||||||||||||||||
FNFI |
FIRST NILES FINANCIAL |
OH | OTC PINK | 9.75 | (2.5 | ) | 0.36 | 89.64 | 0.18 | 27.08 | 21.67 | 97.01 | 97.01 | 10.88 |
111
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 5 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
State |
Exchange |
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||||||||
HCFL |
HOME CITY FINANCIAL CORP |
OH | OTC PINK | 28.90 | 12.5 | 2.99 | 205.23 | 1.00 | 9.67 | 9.60 | 120.62 | 120.62 | 14.08 | |||||||||||||||||||||||||||||||||
HLFN |
HOME LOAN FINANCIAL CORP |
OH | OTC BB | 29.00 | 5.5 | 2.08 | 134.16 | 1.40 | 13.94 | 13.94 | 176.72 | 177.70 | 21.62 | |||||||||||||||||||||||||||||||||
MWBC |
MW BANCORP INC |
OH | OTC BB | 29.17 | 45.9 | (0.23 | ) | 183.17 | 0.61 | NM | 51.18 | 161.52 | 162.96 | 15.93 | ||||||||||||||||||||||||||||||||
PPSF |
PEOPLES-SIDNEY FINANCIAL CORP |
OH | OTC PINK | 10.10 | 12.2 | 0.45 | 83.37 | 0.32 | 22.44 | 21.96 | 94.30 | 94.30 | 12.11 | |||||||||||||||||||||||||||||||||
PFOH |
PERPETUAL FEDERAL SAVINGS BANK |
OH | OTC PINK | 29.24 | 9.5 | 2.22 | 159.91 | 1.17 | 13.17 | 12.39 | 101.39 | 101.39 | 18.29 | |||||||||||||||||||||||||||||||||
UCFC |
UNITED COMMUNITY FINANCIAL CORP |
OH | NASDAQ | 10.99 | 32.3 | 0.58 | 54.03 | 0.14 | 18.95 | 18.02 | 185.02 | 206.58 | 20.34 | |||||||||||||||||||||||||||||||||
VERF |
VERSAILLES FINANCIAL CORP |
OH | OTC BB | 24.25 | 9.7 | 0.62 | 145.75 | 0.00 | 39.11 | 25.26 | 88.76 | 88.76 | 16.64 | |||||||||||||||||||||||||||||||||
WAYN |
WAYNE SAVINGS BANCSHARES |
OH | OTC BB | 18.90 | 7.9 | 1.45 | 163.29 | 0.28 | 13.03 | 12.04 | 128.05 | 135.48 | 11.57 | |||||||||||||||||||||||||||||||||
BNCL |
BENEFICIAL MUTUAL BANCORP |
PA | NASDAQ | 16.20 | 8.0 | 0.34 | 76.96 | 0.49 | 47.65 | 30.00 | 119.91 | 144.77 | 21.05 | |||||||||||||||||||||||||||||||||
ESSA |
ESSA BANCORP |
PA | NASDAQ | 15.83 | 7.5 | 0.40 | 155.21 | 0.36 | 39.58 | 24.35 | 104.70 | 114.79 | 10.20 | |||||||||||||||||||||||||||||||||
HARL |
HARLEYSVILLE SAVINGS FINANCIAL |
PA | OTC PINK | 22.63 | 1.0 | 1.74 | 205.45 | 0.89 | 13.01 | 12.93 | 121.34 | 121.34 | 11.01 | |||||||||||||||||||||||||||||||||
NWBI |
NORTHWEST BANCSHARES |
PA | NASDAQ | 17.39 | 11.4 | 0.99 | 93.58 | 0.65 | 17.57 | 22.88 | 146.88 | 202.68 | 18.58 | |||||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
PA | NASDAQ | 19.30 | 6.3 | 0.76 | 104.95 | 0.31 | 25.39 | 20.53 | 131.47 | 138.55 | 18.39 | |||||||||||||||||||||||||||||||||
QNTO |
QUAINT OAK BANCORP |
PA | OTC PINK | 13.35 | 1.3 | 0.83 | 128.06 | 0.20 | 16.08 | 13.22 | 116.09 | 121.36 | 10.42 | |||||||||||||||||||||||||||||||||
STND |
STANDARD FINANCIAL CORP |
PA | OTC BB | 30.26 | 7.1 | 1.25 | 203.64 | 1.43 | 24.21 | 20.31 | 108.89 | 139.70 | 14.86 | |||||||||||||||||||||||||||||||||
CWAY |
COASTWAY BANCORP |
RI | NASDAQ | 27.70 | 35.1 | 0.66 | 177.82 | 0.00 | 41.97 | 36.45 | 169.11 | 169.21 | 15.58 | |||||||||||||||||||||||||||||||||
FSGB |
FIRST FEDERAL OF SOUTH CAROLINA |
SC | OTC PINK | 10.00 | 146.9 | 0.05 | 3.51 | 0.00 | NM | NM | NM | NM | NM | |||||||||||||||||||||||||||||||||
CASH |
META FINANCIAL GROUP |
SD | NASDAQ | 97.40 | 9.4 | 4.91 | 443.49 | 0.52 | 19.84 | 17.58 | 212.94 | 315.72 | 21.96 | |||||||||||||||||||||||||||||||||
AFCB |
ATHENS BANCSHARES CORP |
TN | OTC BB | 52.15 | 44.5 | 2.72 | 266.30 | 0.20 | 19.17 | 17.62 | 194.44 | 206.94 | 19.58 | |||||||||||||||||||||||||||||||||
SFBK |
SFB BANCORP |
TN | OTC PINK | 32.00 | (1.8 | ) | 0.88 | 168.78 | 0.90 | 36.36 | 32.65 | 126.98 | 129.19 | 18.96 | ||||||||||||||||||||||||||||||||
UNTN |
UNITED TENNESSEE BANKSHARES |
TN | OTC PINK | 22.06 | 4.8 | 1.60 | 248.80 | 0.54 | 13.79 | 10.98 | 88.38 | 88.38 | 8.87 | |||||||||||||||||||||||||||||||||
BAFI |
BANCAFFILIATED |
TX | OTC PINK | 109.00 | 45.3 | 21.49 | 2,409.52 | 0.00 | 5.07 | 4.49 | 46.46 | 48.70 | 4.52 | |||||||||||||||||||||||||||||||||
TBK |
TRIUMPH BANCORP |
TX | NASDAQ | 40.75 | 66.0 | 1.82 | 163.51 | 0.00 | 22.39 | 19.59 | 210.59 | 250.31 | 24.92 |
112
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 6 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
State |
Exchange |
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||||||||
ANCB |
ANCHOR BANCORP |
WA | NASDAQ | 26.15 | 4.4 | 1.07 | 193.14 | 0.00 | 24.44 | 13.69 | 98.05 | 98.42 | 13.54 | |||||||||||||||||||||||||||||||||
FSBW |
FS BANCORP |
WA | NASDAQ | 63.25 | 44.5 | 4.43 | 282.29 | 0.42 | 14.28 | 15.69 | 186.36 | 204.36 | 22.41 | |||||||||||||||||||||||||||||||||
RVSB |
RIVERVIEW BANCORP |
WA | NASDAQ | 8.44 | 27.1 | 0.45 | 51.02 | 0.03 | 18.76 | 15.07 | 162.93 | 215.86 | 16.54 | |||||||||||||||||||||||||||||||||
TSBK |
TIMBERLAND BANCORP |
WA | NASDAQ | 37.34 | 47.8 | 2.13 | 135.48 | 0.54 | 17.53 | 17.37 | 234.11 | 250.27 | 27.56 | |||||||||||||||||||||||||||||||||
FFBW |
FFBW, INC |
WI | NASDAQ | 11.09 | NM | (0.01 | ) | 39.41 | 0.00 | NM | NM | 124.19 | 124.47 | 28.14 | ||||||||||||||||||||||||||||||||
HWIS |
HOME BANCORP WISCONSIN |
WI | OTC PINK | 14.00 | 15.2 | (0.07 | ) | 159.82 | 0.00 | NM | NM | 117.45 | 117.45 | 8.76 | ||||||||||||||||||||||||||||||||
WSBF |
WATERSTONE FINANCIAL |
WI | NASDAQ | 17.05 | (9.5 | ) | 0.90 | 62.62 | 1.48 | 18.94 | 17.58 | 125.83 | 126.30 | 27.23 | ||||||||||||||||||||||||||||||||
WBBW |
WESTBURY BANCORP |
WI | OTC BB | 22.33 | NM | 0.87 | 208.12 | 0.00 | 25.67 | 20.30 | 115.46 | 116.54 | 10.73 |
113
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 7 |
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF JUNE 30, 2018
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
PER SHARE | PRICING RATIOS | |||||||||||||||||||||||||||||||||||||||
Price ($) |
52 Week Change (%) |
Earnings (EPS) ($) |
Assets ($) |
12 Month Div. ($) |
Price/Net Earnings (X) |
Price/Core Earnings (X) |
Price/ Book Value (X) |
Price/Tang. Book Value (X) |
Price/ Assets (X) |
|||||||||||||||||||||||||||||||
ALL INSTITUTIONS |
||||||||||||||||||||||||||||||||||||||||
AVERAGE |
24.77 | 14.09 | 1.46 | 182.99 | 0.32 | 26.78 | 23.61 | 131.40 | 142.77 | 15.68 | ||||||||||||||||||||||||||||||
HIGH |
219.70 | 146.90 | 21.49 | 2,409.52 | 1.48 | 100.00 | 92.58 | 277.73 | 319.08 | 35.52 | ||||||||||||||||||||||||||||||
LOW |
0.10 | (75.00 | ) | (0.72 | ) | 3.51 | 0.00 | 0.13 | 0.12 | 35.69 | 35.69 | 0.08 | ||||||||||||||||||||||||||||
AVERAGE FOR STATE |
||||||||||||||||||||||||||||||||||||||||
WI |
16.12 | 2.85 | 0.42 | 117.49 | 0.37 | 22.31 | 18.94 | 120.73 | 121.19 | 18.72 | ||||||||||||||||||||||||||||||
AVERAGE BY REGION |
||||||||||||||||||||||||||||||||||||||||
MID-ATLANTIC |
19.01 | 1.88 | 0.72 | 118.26 | 0.44 | 26.24 | 22.10 | 119.79 | 140.14 | 14.95 | ||||||||||||||||||||||||||||||
MIDWEST |
21.53 | 10.53 | 1.39 | 177.94 | 0.33 | 20.36 | 20.56 | 114.17 | 120.84 | 14.16 | ||||||||||||||||||||||||||||||
NORTH CENTRAL |
28.61 | 8.27 | 1.88 | 194.96 | 0.37 | 25.07 | 14.80 | 112.75 | 125.99 | 17.21 | ||||||||||||||||||||||||||||||
NORTHEAST |
27.31 | 10.73 | 1.32 | 173.41 | 0.24 | 25.38 | 22.50 | 140.19 | 148.33 | 16.09 | ||||||||||||||||||||||||||||||
SOUTHEAST |
25.47 | 24.95 | 1.19 | 168.26 | 0.23 | 17.09 | 22.82 | 117.03 | 133.30 | 14.57 | ||||||||||||||||||||||||||||||
SOUTHWEST |
36.85 | 29.29 | 3.69 | 437.22 | 0.10 | 20.08 | 15.15 | 128.94 | 134.54 | 16.21 | ||||||||||||||||||||||||||||||
WEST |
28.85 | 24.37 | 1.63 | 152.26 | 0.42 | 26.65 | 23.39 | 165.32 | 175.48 | 18.50 | ||||||||||||||||||||||||||||||
AVERAGE BY EXCHANGE |
||||||||||||||||||||||||||||||||||||||||
NYSE |
24.28 | 1.27 | 1.25 | 185.38 | 0.54 | 18.66 | 14.72 | 119.46 | 169.45 | 13.62 | ||||||||||||||||||||||||||||||
NASDAQ |
26.66 | 13.23 | 1.19 | 149.46 | 0.32 | 27.59 | 24.33 | 147.19 | 162.44 | 18.29 | ||||||||||||||||||||||||||||||
OTC BB |
23.07 | 13.73 | 1.02 | 169.18 | 0.33 | 17.72 | 18.53 | 111.73 | 116.13 | 13.19 | ||||||||||||||||||||||||||||||
OTC PINK |
22.11 | 10.50 | 2.66 | 281.21 | 0.27 | 17.65 | 15.11 | 86.28 | 89.07 | 11.17 |
114
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 31
Page 1 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State |
Total Assets ($000) |
Total Equity ($000) |
Total Tang. Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange | Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
||||||||||||||||||||||||||||||||
SZBI |
SOUTHFIRST BANCSHARES |
AL | 88,014 | 9,739 | 9,739 | 0.29 | 0.39 | 2.62 | 3.55 | OTC PINK | 702,000 | 3,475 | ||||||||||||||||||||||||||||||
BOFI |
BOFI HOLDING |
CA | 9,982,320 | 921,653 | 911,425 | 1.64 | 0.82 | 16.91 | 8.47 | NASDAQ | 62,552,868 | 2,559,038 | ||||||||||||||||||||||||||||||
BYFC |
BROADWAY FINANCIAL CORP |
CA | 399,433 | 47,445 | 47,426 | 0.43 | 0.43 | 3.81 | 3.83 | NASDAQ | 27,418,798 | 60,321 | ||||||||||||||||||||||||||||||
MLGF |
MALAGA FINANCIAL CORPORATION |
CA | 1,046,819 | 128,832 | 128,832 | 1.41 | 1.33 | 10.97 | 10.39 | OTC BB | 6,330,000 | 197,813 | ||||||||||||||||||||||||||||||
PROV |
PROVIDENT FINANCIAL HOLDINGS |
CA | 1,176,602 | 120,600 | 119,706 | 0.14 | 0.25 | 1.37 | 2.37 | NASDAQ | 7,460,804 | 142,352 | ||||||||||||||||||||||||||||||
FBNK |
FIRST CONNECTICUT BANCORP |
CT | 3,137,949 | 276,861 | 271,455 | 0.56 | 0.75 | 6.27 | 8.37 | NASDAQ | 15,984,932 | 489,139 | ||||||||||||||||||||||||||||||
SIFI |
SI FINANCIAL GROUP |
CT | 1,598,222 | 168,919 | 151,197 | 0.35 | 0.49 | 3.26 | 4.63 | NASDAQ | 12,242,434 | 180,576 | ||||||||||||||||||||||||||||||
UBNK |
UNITED FINANCIAL BANCORP |
CT | 7,088,214 | 693,000 | 560,232 | 0.81 | 0.87 | 8.22 | 8.89 | NASDAQ | 50,976,667 | 893,111 | ||||||||||||||||||||||||||||||
WSFS |
WSFS FINANCIAL CORP |
DE | 6,987,931 | 746,279 | 558,489 | 0.99 | 1.23 | 9.36 | 11.63 | NASDAQ | 32,003,414 | 1,705,782 | ||||||||||||||||||||||||||||||
ABCB |
AMERIS BANCORP |
GA | 8,022,828 | 868,944 | 640,968 | 1.02 | 1.23 | 9.71 | 11.69 | NASDAQ | 38,327,081 | 2,044,750 | ||||||||||||||||||||||||||||||
CHFN |
CHARTER FINANCIAL CORP |
GA | 1,659,791 | 221,587 | 177,328 | 0.98 | 1.00 | 7.26 | 7.41 | NASDAQ | 15,137,631 | 365,574 | ||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
GA | 292,476 | 75,649 | 75,649 | 0.02 | 0.31 | 0.09 | 1.22 | NASDAQ | 7,538,250 | 83,750 | ||||||||||||||||||||||||||||||
TBNK |
TERRITORIAL BANCORP |
HI | 2,055,724 | 232,372 | 232,121 | 0.78 | 0.79 | 6.58 | 6.64 | NASDAQ | 9,733,830 | 301,749 | ||||||||||||||||||||||||||||||
WCFB |
WCF BANCORP |
IA | 124,421 | 28,040 | 27,980 | 0.20 | 0.06 | 0.82 | 0.24 | NASDAQ | 2,561,542 | 23,054 | ||||||||||||||||||||||||||||||
AJSB |
AJS BANCORP |
IL | 193,870 | 29,115 | 29,113 | 0.06 | 0.31 | 0.37 | 2.09 | OTC BB | 2,149,860 | 30,206 | ||||||||||||||||||||||||||||||
AFBA |
ALLIED FIRST BANCORP |
IL | 83,191 | 9,839 | 9,839 | (0.28 | ) | 0.72 | (2.58 | ) | 6.55 | OTC BB | 1,351,892 | 1,825 | ||||||||||||||||||||||||||||
BFFI |
BEN FRANKLIN FINANCIAL |
IL | 101,544 | 10,357 | 10,357 | (0.60 | ) | (0.65 | ) | (7.52 | ) | (8.13 | ) | OTC BB | 1,270,000 | 10,478 | ||||||||||||||||||||||||||
BTHT |
BEST HOMETOWN BANCORP |
IL | 107,949 | 12,186 | 12,186 | (0.29 | ) | (0.24 | ) | (2.66 | ) | (2.26 | ) | OTC PINK | 826,208 | 11,154 | ||||||||||||||||||||||||||
GTPS |
GREAT AMERICAN BANCORP |
IL | 180,924 | 17,111 | 15,931 | 0.37 | 0.49 | 3.83 | 5.08 | OTC BB | 438,206 | 13,957 | ||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
IL | 619,310 | 81,613 | 80,822 | 0.31 | 0.34 | 2.25 | 2.51 | NASDAQ | 3,891,408 | 93,005 | ||||||||||||||||||||||||||||||
JXSB |
JACKSONVILLE BANCORP |
IL | 323,400 | 47,769 | 44,499 | 0.89 | 1.10 | 6.49 | 8.03 | NASDAQ | 1,814,467 | 61,057 | ||||||||||||||||||||||||||||||
MCPH |
MIDLAND CAPITAL HOLDINGS CORP |
IL | 117,583 | 10,859 | 10,859 | 0.08 | 0.11 | 0.84 | 1.15 | OTC PINK | 372,600 | 8,942 | ||||||||||||||||||||||||||||||
OTTW |
OTTAWA SAVINGS BANCORP |
IL | 267,587 | 51,256 | 49,899 | 0.40 | 0.75 | 1.91 | 3.60 | OTC BB | 3,415,490 | 47,407 |
115
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 2 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State |
Total Assets ($000) |
Total Equity ($000) |
Total Tang. Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange | Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
||||||||||||||||||||||||||||||||
RYFL |
ROYAL FINANCIAL |
IL | 429,887 | 45,207 | 42,201 | 0.76 | 1.07 | 7.06 | 9.99 | OTC BB | 2,507,112 | 43,749 | ||||||||||||||||||||||||||||||
SUGR |
SUGAR CREEK FINANCIAL CORP |
IL | 93,119 | 10,665 | 10,665 | 0.16 | 0.14 | 1.44 | 1.27 | OTC BB | 804,807 | 10,141 | ||||||||||||||||||||||||||||||
FDLB |
FIDELITY FEDERAL BANCORP |
IN | 711,698 | 85,222 | 83,297 | 2.64 | 1.27 | 22.13 | 10.68 | OTC PINK | 844,763 | 21,119 | ||||||||||||||||||||||||||||||
FCAP |
FIRST CAPITAL |
IN | 765,381 | 79,561 | 72,013 | 0.98 | 1.02 | 9.19 | 9.57 | NASDAQ | 3,356,964 | 139,482 | ||||||||||||||||||||||||||||||
NWIN |
NORTHWEST INDIANA BANCORP |
IN | 938,508 | 89,903 | 86,664 | 1.00 | 0.90 | 10.18 | 9.15 | OTC BB | 2,924,978 | 125,628 | ||||||||||||||||||||||||||||||
TDCB |
THIRD CENTURY BANCORP |
IN | 152,674 | 15,390 | 15,189 | 0.43 | 0.51 | 4.22 | 4.98 | OTC BB | 1,420,000 | 19,809 | ||||||||||||||||||||||||||||||
UCBA |
UNITED COMMUNITY BANCORP |
IN | 548,302 | 71,175 | 67,681 | 0.66 | 0.78 | 5.02 | 5.85 | NASDAQ | 4,217,619 | 114,719 | ||||||||||||||||||||||||||||||
WEIN |
WEST END INDIANA BANCSHARES |
IN | 308,356 | 28,315 | 27,510 | 0.23 | 0.44 | 2.45 | 4.67 | OTC BB | 1,066,858 | 30,939 | ||||||||||||||||||||||||||||||
CFFN |
CAPITOL FEDERAL FINANCIAL |
KS | 9,133,171 | 1,364,740 | 1,364,272 | 1.07 | 0.93 | 7.14 | 6.22 | NASDAQ | 138,250,235 | 1,819,373 | ||||||||||||||||||||||||||||||
PBSK |
POAGE BANKSHARES |
KY | 450,159 | 60,937 | 58,150 | (0.56 | ) | (0.61 | ) | (3.95 | ) | (4.36 | ) | NASDAQ | 3,499,846 | 68,807 | ||||||||||||||||||||||||||
CTUY |
CENTURY NEXT FINANCIAL CORP |
LA | 289,806 | 26,734 | 26,734 | 0.94 | 1.09 | 10.12 | 11.74 | OTC BB | 1,050,000 | 35,700 | ||||||||||||||||||||||||||||||
FPBF |
FPB FINANCIAL CORP |
LA | 364,858 | 36,122 | 36,044 | 0.71 | 0.78 | 7.60 | 8.31 | OTC PINK | 2,650,000 | 52,338 | ||||||||||||||||||||||||||||||
HRGG |
HERITAGE NOLA BANCORP |
LA | 112,497 | 24,239 | 23,898 | 0.48 | 0.50 | 2.66 | 2.77 | OTC PINK | 1,653,125 | 20,631 | ||||||||||||||||||||||||||||||
HIBE |
HIBERNIA BANCORP |
LA | 130,147 | 18,708 | 18,708 | 0.13 | 0.24 | 0.91 | 1.67 | OTC BB | 1,032,667 | 32,942 | ||||||||||||||||||||||||||||||
HFBL |
HOME FED BANCORP OF LOUISIANA |
LA | 412,960 | 46,410 | 46,242 | 0.88 | 1.04 | 7.98 | 9.43 | NASDAQ | 1,908,581 | 60,025 | ||||||||||||||||||||||||||||||
BHBK |
BLUE HILLS BANCORP |
MA | 2,670,738 | 395,444 | 384,280 | 0.60 | 0.68 | 4.08 | 4.61 | NASDAQ | 26,861,521 | 596,326 | ||||||||||||||||||||||||||||||
BLMT |
BSB BANCORP INC. |
MA | 2,747,954 | 184,565 | 183,512 | 0.65 | 0.77 | 9.45 | 11.27 | NASDAQ | 9,741,471 | 335,107 | ||||||||||||||||||||||||||||||
HONE |
HARBORONE BANCORP |
MA | 2,696,517 | 344,857 | 308,399 | 0.42 | 0.39 | 3.23 | 3.00 | NASDAQ | 32,622,695 | 617,874 | ||||||||||||||||||||||||||||||
HIFS |
HINGHAM INSTITUTION FOR SAVINGS |
MA | 2,240,198 | 186,158 | 186,158 | 1.29 | 1.31 | 15.76 | 15.99 | NASDAQ | 2,132,750 | 468,565 | ||||||||||||||||||||||||||||||
EBSB |
MERIDIAN BANCORP |
MA | 5,460,900 | 655,607 | 632,505 | 0.89 | 0.91 | 7.11 | 7.32 | NASDAQ | 54,068,874 | 1,035,419 | ||||||||||||||||||||||||||||||
PLRM |
PILGRIM BANCSHARES |
MA | 262,741 | 33,890 | 33,890 | 0.50 | 0.61 | 3.89 | 4.74 | OTC BB | 2,264,950 | 45,639 | ||||||||||||||||||||||||||||||
PVBC |
PROVIDENT BANCORP |
MA | 890,772 | 117,330 | 117,330 | 0.90 | 0.72 | 7.00 | 5.56 | NASDAQ | 9,628,496 | 252,267 | ||||||||||||||||||||||||||||||
RNDB |
RANDOLPH BANCORP |
MA | 533,539 | 79,871 | 73,190 | (0.43 | ) | (0.48 | ) | (2.72 | ) | (3.06 | ) | NASDAQ | 6,029,776 | 101.300 |
116
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 3 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State |
Total Assets ($000) |
Total Equity ($000) |
Total Tang. Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange | Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
||||||||||||||||||||||||||||||||
WEBK |
WELLESLEY BANCORP |
MA | 819,586 | 60,103 | 60,002 | 0.64 | 0.77 | 8.41 | 10.23 | NASDAQ | 2,506,532 | 84,796 | ||||||||||||||||||||||||||||||
WNEB |
WESTERN NEW ENGLAND BANCORP |
MA | 2,085,531 | 242,623 | 225,832 | 0.52 | 0.75 | 4.32 | 6.25 | NASDAQ | 30,138,083 | 331,519 | ||||||||||||||||||||||||||||||
IFSB |
COLOMBO BANK |
MD | 194,655 | 21,367 | 21,367 | 0.62 | 0.63 | 5.90 | 6.03 | OTC PINK | 1,552,000 | 155 | ||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
MD | 526,310 | 51,228 | 42,052 | (0.12 | ) | 0.33 | (1.03 | ) | 2.92 | NASDAQ | 3,411,075 | 53,554 | ||||||||||||||||||||||||||||
MBCQ |
MB BANCORP |
MD | 148,391 | 30,128 | 30,128 | 0.17 | (0.40 | ) | 0.80 | (1.88 | ) | OTC BB | 19,400,200 | 322,043 | ||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
MD | 801,183 | 92,417 | 90,814 | 0.47 | 0.75 | 4.38 | 6.92 | NASDAQ | 12,247,626 | 105,942 | ||||||||||||||||||||||||||||||
FBC |
FLAGSTAR BANCORP |
MI | 17,735,862 | 1,427,000 | 1,116,713 | 0.45 | 0.95 | 5.37 | 11.24 | NYSE | 57,399,993 | 1,966,524 | ||||||||||||||||||||||||||||||
NWBB |
NEW BANCORP |
MI | 121,562 | 15,447 | 14,373 | 1.04 | 1.07 | 8.47 | 8.73 | OTC BB | 719,531 | 14,031 | ||||||||||||||||||||||||||||||
SBT |
STERLING BANCORP |
MI | 3,037,848 | 288,512 | 279,944 | 1.55 | 1.74 | 18.58 | 20.91 | NASDAQ | 53,002,963 | 708,120 | ||||||||||||||||||||||||||||||
STBI |
STURGIS BANCORP |
MI | 444,409 | 39,742 | 32,519 | 0.84 | 0.79 | 9.11 | 8.49 | OTC BB | 2,440,000 | 46,604 | ||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
MN | 722,080 | 82,056 | 79,200 | 0.70 | 0.79 | 6.28 | 7.09 | NASDAQ | 4,504,234 | 90,535 | ||||||||||||||||||||||||||||||
REDW |
REDWOOD FINANCIAL |
MN | 295,144 | 34,822 | 29,127 | 1.12 | 0.96 | 9.56 | 8.23 | OTC PINK | 438,551 | 23,682 | ||||||||||||||||||||||||||||||
CCFC |
CCSB FINANCIAL CORP |
MO | 98,629 | 10,733 | 10,668 | 0.50 | 0.50 | 4.59 | 4.57 | OTC PINK | 917,000 | 12,104 | ||||||||||||||||||||||||||||||
CFDB |
CENTRAL FEDERAL S&L ASSN OF ROLLA |
MO | 67,707 | 25,936 | 25,936 | 0.17 | 0.17 | 0.43 | 0.43 | OTC PINK | 1,670,220 | 24,051 | ||||||||||||||||||||||||||||||
NASB |
NASB FINANCIAL |
MO | 1,910,516 | 223,978 | 208,163 | 1.34 | 1.35 | 11.75 | 11.77 | OTC BB | 7,384,851 | 304,182 | ||||||||||||||||||||||||||||||
QRRY |
QUARRY CITY S&L ASSN |
MO | 53,646 | 8,703 | 8,433 | 0.51 | 0.59 | 3.17 | 3.68 | OTC BB | 407,691 | 6,319 | ||||||||||||||||||||||||||||||
KSBI |
KS BANCORP |
NC | 375,395 | 34,827 | 34,827 | 0.68 | 0.91 | 7.04 | 9.42 | OTC BB | 1,309,500 | 36,666 | ||||||||||||||||||||||||||||||
LSFG |
LIFESTORE FINANCIAL GROUP |
NC | 285,617 | 28,495 | 27,650 | 0.69 | 0.79 | 6.71 | 7.74 | OTC PINK | 1,050,000 | 27,300 | ||||||||||||||||||||||||||||||
UBNC |
UNION BANK |
NC | 707,429 | 73,441 | 57,389 | 0.56 | 0.77 | 5.38 | 7.49 | OTC PINK | 5,816,138 | 95,385 | ||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
NE | 305,633 | 35,659 | 33,360 | 0.41 | 0.49 | 3.13 | 3.72 | NASDAQ | 3,317,670 | 35,698 | ||||||||||||||||||||||||||||||
MCBK |
MADISON COUNTY FINANCIAL |
NE | 384,889 | 68,360 | 65,526 | 1.02 | 1.32 | 5.77 | 7.51 | OTC PINK | 3,140,000 | 81,640 | ||||||||||||||||||||||||||||||
ISBC |
INVESTORS BANCORP |
NJ | 25,232,421 | 3,092,081 | 2,990,473 | 0.56 | 0.76 | 4.43 | 6.03 | NASDAQ | 301,796,438 | 3,859,976 | ||||||||||||||||||||||||||||||
KRNY |
KEARNY FINANCIAL CORP |
NJ | 4,933,700 | 991,201 | 882,037 | 0.34 | 0.38 | 1.61 | 1.83 | NASDAQ | 78,765,003 | 1,059,389 |
117
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 4 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State | Total Assets ($000) |
Total Equity ($000) |
Total Tang, Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange | Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
||||||||||||||||||||||||||||||||
MGYR |
MAGYAR |
NJ | 607,831 | 50,027 | 49,974 | 0.27 | 0.38 | 3.28 | 4.59 | NASDAQ | 5,820,746 | 74,971 | ||||||||||||||||||||||||||||||
MSBF |
MB BANCORP |
NJ | 563,980 | 69,759 | 69,759 | 0.61 | 0.79 | 4.84 | 6.19 | NASDAQ | 5,524,095 | 118,768 | ||||||||||||||||||||||||||||||
NFBK |
NORTHFIELD BANCORP |
NJ | 4,069,209 | 642,926 | 603,110 | 0.63 | 0.92 | 3.94 | 5.68 | NASDAQ | 49,126,879 | 816,489 | ||||||||||||||||||||||||||||||
OCFC |
OCEANFIRST FINANCIAL CORP |
NJ | 7,501,048 | 1,007,460 | 649,856 | 0.61 | 0.73 | 5.14 | 6.18 | NASDAQ | 48,105,623 | 1,441,244 | ||||||||||||||||||||||||||||||
ORIT |
ORITANI FINANCIAL CORP |
NJ | 4,142,777 | 554,691 | 554,691 | 0.78 | 1.02 | 5.80 | 7.59 | NASDAQ | 46,604,276 | 754,989 | ||||||||||||||||||||||||||||||
PFS |
PROVIDENT FINANCIAL SERVICES |
NJ | 9,734,242 | 1,305,035 | 885,315 | 1.02 | 1.07 | 7.58 | 7.94 | NYSE | 66,729,095 | 1,837,052 | ||||||||||||||||||||||||||||||
BCTF |
BANCORP 34 |
NM | 340,840 | 49,618 | 49,216 | 0.34 | 0.99 | 2.33 | 6.69 | NASDAQ | 3,388,601 | 52,354 | ||||||||||||||||||||||||||||||
CARV |
CARVER BANCORP |
NY | 694,186 | 55,589 | 55,408 | 1.47 | (0.64 | ) | 20.22 | (8.81 | ) | NASDAQ | 3,698,247 | 17,123 | ||||||||||||||||||||||||||||
DCOM |
DIME COMMUNITY BANCSHARES |
NY | 6,325,917 | 607,957 | 550,812 | 0.87 | 0.75 | 9.35 | 8.05 | NASDAQ | 37,484,270 | 730,943 | ||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
NY | 553,389 | 56,886 | 43,134 | 0.87 | 0.57 | 8.03 | 5.21 | NASDAQ | 2,643,652 | 54,010 | ||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
NY | 312,853 | 31,315 | 30,421 | 0.24 | 0.26 | 2.28 | 2.51 | NASDAQ | 1,941,253 | 34,457 | ||||||||||||||||||||||||||||||
NYCB |
NEW YORK COMMUNITY BANCORP |
NY | 49,654,874 | 6,780,717 | 4,339,399 | 0.96 | 0.79 | 6.93 | 5.74 | NYSE | 490,379,532 | 5,413,790 | ||||||||||||||||||||||||||||||
PCSB |
PCSB FINANCIAL CORP |
NY | 1,456,724 | 284,680 | 278,111 | 0.28 | 0.39 | 1.43 | 1.97 | NASDAQ | 18,165,110 | 360,941 | ||||||||||||||||||||||||||||||
PDLB |
PDL COMMUNITY BANCORP |
NY | 947,938 | 165,714 | 165,714 | 0.16 | 0.28 | 0.99 | 1.69 | NASDAQ | 18,463,028 | 290,054 | ||||||||||||||||||||||||||||||
SNNF |
SENECA FIN CORP |
NY | 182,328 | 18,338 | 18,338 | 0.32 | 0.45 | 3.78 | 5.26 | OTC PINK | 1,978,923 | 16,920 | ||||||||||||||||||||||||||||||
SNNY |
SUNNYSIDE BANCORP |
NY | 84,406 | 10,382 | 10,382 | (0.37 | ) | (0.04 | ) | (2.93 | ) | (0.30 | ) | OTC BB | 793,500 | 12,791 | ||||||||||||||||||||||||||
TRST |
TRUSTCO BANK CORP NY |
NY | 4,930,915 | 462,097 | 461,544 | 0.96 | 1.06 | 10.32 | 11.38 | NASDAQ | 96,358,600 | 857,592 | ||||||||||||||||||||||||||||||
CNNB |
CINCINNATI BANCORP |
OH | 175,051 | 19,527 | 18,490 | 0.60 | 0.42 | 5.33 | 3.66 | OTC BB | 1,752,947 | 22,525 | ||||||||||||||||||||||||||||||
CCSB |
COMM SAVINGS BANCORP |
OH | 52,160 | 9,006 | 9,006 | (0.18 | ) | (0.35 | ) | (1.05 | ) | (2.02 | ) | OTC BB | 441,290 | 6,443 | ||||||||||||||||||||||||||
CIBN |
COMMUNITY INVESTORS BANCORP |
OH | 144,133 | 12,980 | 12,397 | 0.69 | 0.53 | 7.76 | 6.00 | OTC PINK | 525,000 | 8,138 | ||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
OH | 132,160 | 27,491 | 27,491 | 0.51 | 0.31 | 2.79 | 1.68 | NASDAQ | 1,612,808 | 26,369 | ||||||||||||||||||||||||||||||
FDEF |
FIRST DEFIANCE FINANCIAL CORP |
OH | 3,022,984 | 379,214 | 265,439 | 1.31 | 1.34 | 10.49 | 10.71 | NASDAQ | 10,181,899 | 682,798 | ||||||||||||||||||||||||||||||
FNFI |
FIRST NILES FINANCIAL |
OH | 99,784 | 11,186 | 11,186 | 0.41 | 0.52 | 3.34 | 4.25 | OTC PINK | 1,113,172 | 10,853 |
118
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 5 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES |
||||||||||||||||||||||||||||||||||||||||
State |
Total Assets ($000) |
Total Equity ($000) |
Total Tang. Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange |
Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
||||||||||||||||||||||||||||||||
HCFL |
HOME CITY FINANCIAL CORP |
OH | 167,636 | 19,575 | 19,575 | 1.47 | 1.48 | 12.91 | 12.99 | OTC PINK | 816,818 | 23,606 | ||||||||||||||||||||||||||||||
HLFN |
HOME LOAN FINANCIAL CORP |
OH | 201,246 | 24,610 | 24,482 | 1.49 | 1.49 | 13.27 | 13.28 | OTC BB | 1,500,000 | 43,500 | ||||||||||||||||||||||||||||||
MWBC |
MW BANCORP INC |
OH | 163,242 | 16,091 | 15,956 | (0.13 | ) | 0.33 | (1.22 | ) | 3.05 | OTC BB | 891,209 | 25,997 | ||||||||||||||||||||||||||||
PPSF |
PEOPLES-SIDNEY FINANCIAL CORP |
OH | 113,378 | 14,565 | 14,565 | 0.55 | 0.57 | 4.13 | 4.22 | OTC PINK | 1,360,000 | 13,736 | ||||||||||||||||||||||||||||||
PFOH |
PERPETUAL FEDERAL SAVINGS BANK |
OH | 394,980 | 71,248 | 71,248 | 1.39 | 1.48 | 7.84 | 8.34 | OTC PINK | 2,470,032 | 72,224 | ||||||||||||||||||||||||||||||
UCFC |
UNITED COMMUNITY FINANCIAL CORP |
OH | 2,695,178 | 296,195 | 265,250 | 1.10 | 1.15 | 9.87 | 10.39 | NASDAQ | 49,882,491 | 548,209 | ||||||||||||||||||||||||||||||
VERF |
VERSAILLES FINANCIAL CORP |
OH | 56,530 | 10,598 | 10,598 | 0.43 | 0.67 | 2.30 | 3.53 | OTC BB | 387,867 | 9,406 | ||||||||||||||||||||||||||||||
WAYN |
WAYNE SAVINGS BANCSHARES |
OH | 454,254 | 41,060 | 38,799 | 0.90 | 0.98 | 9.66 | 10.49 | OTC BB | 2,781,839 | 52,577 | ||||||||||||||||||||||||||||||
BNCL |
BENEFICIAL MUTUAL BANCORP |
PA | 5,792,663 | 1,016,636 | 842,514 | 0.44 | 0.70 | 2.46 | 3.95 | NASDAQ | 75,264,135 | 1,219,279 | ||||||||||||||||||||||||||||||
ESSA |
ESSA BANCORP |
PA | 1,820,924 | 177,378 | 161,792 | 0.26 | 0.43 | 2.63 | 4.26 | NASDAQ | 11,732,222 | 185,721 | ||||||||||||||||||||||||||||||
HARL |
HARLEYSVILLE SAVINGS FINANCIAL |
PA | 774,997 | 70,366 | 70,366 | 0.85 | 0.85 | 9.46 | 9.54 | OTC PINK | 3,772,166 | 85,364 | ||||||||||||||||||||||||||||||
NWBI |
NORTHWEST BANCSHARES |
PA | 9,601,600 | 1,215,254 | 880,496 | 1.07 | 0.82 | 8.43 | 6.47 | NASDAQ | 102,599,662 | 1,784,208 | ||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
PA | 944,329 | 132,060 | 125,319 | 0.75 | 0.93 | 5.11 | 6.33 | NASDAQ | 8,998,235 | 173,666 | ||||||||||||||||||||||||||||||
QNTO |
QUAINT OAK BANCORP |
PA | 250,300 | 22,485 | 21,502 | 0.68 | 0.84 | 7.30 | 8.97 | OTC PINK | 1,954,571 | 26,094 | ||||||||||||||||||||||||||||||
STND |
STANDARD FINANCIAL CORP |
PA | 976,781 | 133,310 | 103,915 | 0.61 | 0.73 | 4.50 | 5.38 | OTC BB | 4,796,643 | 145,146 | ||||||||||||||||||||||||||||||
CWAY |
COASTWAY BANCORP |
RI | 779,976 | 71,868 | 71,815 | 0.40 | 0.46 | 4.07 | 4.68 | NASDAQ | 4,386,351 | 121,502 | ||||||||||||||||||||||||||||||
FSGB |
FIRST FEDERAL OF SOUTH CAROLINA |
SC | 84,378 | 6,039 | 5,659 | 1.30 | 1.35 | 18.54 | 19.26 | OTC PINK | 24,066,545 | 240,665 | ||||||||||||||||||||||||||||||
CASH |
META FINANCIAL GROUP |
SD | 4,301,708 | 443,703 | 299,256 | 1.00 | 1.13 | 10.91 | 12.30 | NASDAQ | 9,699,591 | 944,740 | ||||||||||||||||||||||||||||||
AFCB |
ATHENS BANCSHARES CORP |
TN | 482,009 | 48,553 | 45,613 | 1.05 | 1.15 | 10.00 | 10.92 | OTC BB | 1,810,000 | 94,392 | ||||||||||||||||||||||||||||||
SFBK |
SFB BANCORP |
TN | 67,005 | 10,006 | 9,832 | 0.54 | 0.60 | 3.49 | 3.87 | OTC PINK | 397,000 | 12,704 | ||||||||||||||||||||||||||||||
UNTN |
UNITED TENNESSEE BANKSHARES |
TN | 205,755 | 20,645 | 20,645 | 0.65 | 0.81 | 6.28 | 7.87 | OTC PINK | 827,000 | 18,244 | ||||||||||||||||||||||||||||||
BAFI |
BANCAFFILIATED |
TX | 670,930 | 65,325 | 62,329 | 0.95 | 1.07 | 9.36 | 10.57 | OTC PINK | 278,450 | 30,351 | ||||||||||||||||||||||||||||||
TBK |
TRIUMPH BANCORP |
TX | 3,405,010 | 402,944 | 339,021 | 1.20 | 1.37 | 10.14 | 11.61 | NASDAQ | 20,824,509 | 848,599 |
119
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 6 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||||
State |
Total Assets ($000) |
Total Equity ($000) |
Total Tang. Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange | Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
||||||||||||||||||||||||||||||||
ANCB |
ANCHOR BANCORP | WA | 479,755 | 66,253 | 65,996 | 0.57 | 1.01 | 4.03 | 7.18 | NASDAQ | 2,484,030 | 64,957 | ||||||||||||||||||||||||||||||
FSBW |
FS BANCORP | WA | 1,043,205 | 125,442 | 114,374 | 1.66 | 1.51 | 14.40 | 13.10 | NASDAQ | 3,695,552 | 233,744 | ||||||||||||||||||||||||||||||
RVSB |
RIVERVIEW BANCORP | WA | 1,151,535 | 116,901 | 88,334 | 0.90 | 1.12 | 8.82 | 10.96 | NASDAQ | 22,570,179 | 190,492 | ||||||||||||||||||||||||||||||
TSBK |
TIMBERLAND BANCORP | WA | 1,001,201 | 117,843 | 110,283 | 1.63 | 1.64 | 13.97 | 14.10 | NASDAQ | 7,390,227 | 275,951 | ||||||||||||||||||||||||||||||
FFBW |
FFBW, INC | WI | 260,573 | 59,039 | 58,940 | (0.02 | ) | 0.07 | (0.13 | ) | 0.41 | NASDAQ | 6,612,500 | 73,333 | ||||||||||||||||||||||||||||
HWIS |
HOME BANCORP |
WI | 143,707 | 10,715 | 10,715 | (0.04 | ) | (0.05 | ) | (0.59 | ) | (0.61 | ) | OTC PINK | 899,190 | 12,589 | ||||||||||||||||||||||||||
WSBF |
WATERSTONE FINANCIAL | WI | 1,836,338 | 397,419 | 395,839 | 1.43 | 1.54 | 6.47 | 6.97 | NASDAQ | 29,323,807 | 499,971 | ||||||||||||||||||||||||||||||
WBBW |
WESTBURY BANCORP | WI | 801,259 | 74,453 | 73,748 | 0.42 | 0.53 | 4.37 | 5.57 | OTC BB | 3,850,000 | 85,971 |
120
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
Page 7 |
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
ASSETS AND EQUITY | PROFITABILITY | CAPITAL ISSUES | ||||||||||||||||||||||||||||||||||||||
Total Assets ($000) |
Total Equity ($000) |
Total Tang. Equity ($000) |
ROAA (%) |
Core ROAA (%) |
ROAE (%) |
Core ROAE (%) |
Exchange | Number of Shares Outstanding |
Mkt. Value of Shares ($000) |
|||||||||||||||||||||||||||||||
ALL INSTITUTIONS |
| |||||||||||||||||||||||||||||||||||||||
AVERAGE |
2,245,051 | 273,993 | 227,960 | 0.84 | 0.87 | 6.82 | 7.06 | 20,565,278 | 377,766 | |||||||||||||||||||||||||||||||
MEDIAN |
548,302 | 66,253 | 62,329 | 0.61 | 0.75 | 5.33 | 6.19 | 3,499,846 | 83,750 | |||||||||||||||||||||||||||||||
HIGH |
49,654,874 | 6,780,717 | 4,339,399 | 2.64 | 1.74 | 22.13 | 20.91 | 490,379,532 | 5,413,790 | |||||||||||||||||||||||||||||||
LOW |
52,160 | 6,039 | 5,659 | (0.60 | ) | (0.65 | ) | (7.52 | ) | (8.81 | ) | 278,450 | 155 | |||||||||||||||||||||||||||
AVERAGE FOR STATE |
||||||||||||||||||||||||||||||||||||||||
WI |
760,469 | 135,407 | 134,811 | 0.97 | 1.07 | 5.46 | 6.05 | 10,171,374 | 167,966 | |||||||||||||||||||||||||||||||
AVERAGE BY REGION |
| |||||||||||||||||||||||||||||||||||||||
MID-ATLANTIC |
4,280,264 | 571,104 | 481,698 | 0.69 | 0.82 | 5.18 | 6.12 | 44,010,205 | 788,492 | |||||||||||||||||||||||||||||||
MIDWEST |
966,193 | 100,554 | 87,854 | 0.77 | 1.01 | 7.24 | 9.56 | 6,653,461 | 145,149 | |||||||||||||||||||||||||||||||
NORTH CENTRAL |
1,581,595 | 211,521 | 195,629 | 1.04 | 1.01 | 8.03 | 7.82 | 15,662,871 | 305,943 | |||||||||||||||||||||||||||||||
NORTHEAST |
4,089,849 | 499,365 | 383,878 | 0.85 | 0.77 | 6.86 | 6.25 | 38,812,152 | 555,907 | |||||||||||||||||||||||||||||||
SOUTHEAST |
1,115,518 | 127,084 | 100,482 | 0.94 | 1.11 | 8.33 | 9.90 | 8,816,468 | 274,810 | |||||||||||||||||||||||||||||||
SOUTHWEST |
715,881 | 83,763 | 75,274 | 1.00 | 1.19 | 8.63 | 10.20 | 4,098,242 | 141,618 | |||||||||||||||||||||||||||||||
WEST |
2,037,399 | 208,593 | 202,055 | 1.32 | 0.91 | 12.43 | 8.59 | 16,626,254 | 447,380 | |||||||||||||||||||||||||||||||
AVERAGE BY EXCHANGE |
| |||||||||||||||||||||||||||||||||||||||
NYSE |
25,708,326 | 3,170,917 | 2,113,809 | 0.85 | 0.86 | 6.78 | 6.87 | 204,836,207 | 3,072,455 | |||||||||||||||||||||||||||||||
NASDAQ |
2,831,254 | 345,900 | 308,604 | 0.83 | 0.87 | 6.77 | 7.09 | 27,722,424 | 537,805 | |||||||||||||||||||||||||||||||
OTC |
366,001 | 41,858 | 39,499 | 0.83 | 0.89 | 7.14 | 7.70 | 2,623,130 | 62,494 | |||||||||||||||||||||||||||||||
OTC PINK |
262,922 | 30,577 | 29,309 | 0.94 | 0.88 | 8.12 | 7.60 | 2,388,134 | 36,672 |
121
EXHIBIT 32
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
RECENT STANDARD CONVERSIONS
PRICE CHANGES FROM IPO DATE
January 1, 2017 through August 7, 2018
Percentage Price Change From Initial Trading Date |
||||||||||||||||||||||||
Company Name |
Ticker | Conversion Date |
Exchange |
One Day |
One Week |
One Month |
Through 8/07/2018 |
|||||||||||||||||
Community Savings Bancorp |
CCSB | 1/10/2017 | OTC MKT | 30.00 | 30.00 | 30.00 | 50.00 | |||||||||||||||||
HV Bancorp, Inc. |
HVBC | 1/12/2017 | NASDAQ | 36.70 | 41.30 | 39.90 | 51.50 | |||||||||||||||||
PCSB Financial Corp. |
PCSB | 4/21/2017 | NASDAQ | 64.60 | 63.50 | 63.60 | 100.10 | |||||||||||||||||
Community First Bancshares |
CFBI | 4/28/2017 | NASDAQ | 17.40 | 33.70 | 31.50 | 16.40 | |||||||||||||||||
Eagle Financial Bancorp |
EFBI | 7/21/2017 | NASDAQ | 14.92 | 60.80 | 60.00 | 60.00 | |||||||||||||||||
FFBW, Inc. |
FFBW | 10/11/2017 | NASDAQ | 15.30 | 11.00 | 11.00 | 12.50 | |||||||||||||||||
Heritage NOLA Bancorp |
HRGG | 7/13/2017 | OTC MKT | 15.00 | 13.50 | 13.50 | 23.50 | |||||||||||||||||
Seneca Financial |
SNNF | 10/12/2017 | OTC MKT | 18.00 | (8.50 | ) | (10.00 | ) | (9.50 | ) | ||||||||||||||
SSB Bancorp |
SSPB | 1/26/2018 | OTC MKT | (5.50 | ) | (7.50 | ) | (4.00 | ) | (5.00 | ) | |||||||||||||
Columbia Financial |
CLBK | 4/20/2018 | NASDAQ | 54.20 | 66.30 | 70.70 | 68.40 | |||||||||||||||||
AVERAGE | 26.06 | % | 30.41 | % | 30.62 | % | 36.79 | % | ||||||||||||||||
MEDIAN | 17.70 | 48.35 | 30.75 | 73.50 | ||||||||||||||||||||
HIGH | 64.60 | 66.50 | 70.70 | 100.10 | ||||||||||||||||||||
LOW | (5.50 | ) | (8.50 | ) | (10.00 | ) | (9.50 | ) |
122
EXHIBIT 33
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
RECENT ACQUISITIONS AND PENDING ACQUISITIONS
COUNTY, CITY OR MARKET AREA OF PYRAMAX BANK
NONE
(that were potential comparable group candidates)
123
KELLER & COMPANY Dublin, Ohio (614) 766-1426 |
EXHIBIT 34 |
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Northeast, Southeast
Asset Size: < $950 Million
Stock trades on: NASDAQ or NYSE
No Recent Acquisition Activity
Total Assets ($000) |
Cash & Securities/ Assets (%) |
MBS/ Assets (%) |
1-4 Fam. Loans/ Assets (%) |
Total Net Loans/ Assets (%) |
Total Net Loans & MBS/ Assets (%) |
Borrowed Funds/ Assets (%) |
Equity/ Assets (%) |
|||||||||||||||||||||||||||||
PYRAMAX F.S.B. |
WI | 482,617 | 5.82 | 10.77 | 25.77 | 76.50 | 87.27 | 5.73 | 7.81 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN |
< 950,000 | < 20.00 | <16.00 | <72.00 | |
60.00 - 88.00 |
|
|
70.00 - 90.00 |
|
< 22.00 | |
7.00 - 26.00 |
| ||||||||||||||||||||||
SIFI |
SI FINANCIAL GROUP | CT | 1,598,222 | 9.70 | 4.60 | 27.05 | 79.04 | 83.64 | 10.87 | 10.57 | ||||||||||||||||||||||||||
CHFN |
CHARTER FINANCIAL CORP | GA | 1,659,791 | 13.85 | 7.78 | 21.93 | 69.51 | 77.29 | 3.62 | 13.35 | ||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES | GA | 292,476 | 10.33 | 4.54 | 52.69 | 77.66 | 82.20 | 3.55 | 25.87 | ||||||||||||||||||||||||||
WCFB |
WCF BANCORP | IA | 124,421 | 16.17 | 21.38 | 46.62 | 53.65 | 75.03 | 12.28 | 22.54 | ||||||||||||||||||||||||||
IROQ |
IF BANCORP | IL | 619,310 | 6.35 | 15.20 | 22.39 | 73.78 | 88.98 | 8.81 | 13.18 | ||||||||||||||||||||||||||
FCAP |
FIRST CAPITAL | IN | 765,381 | 24.13 | 16.33 | 16.91 | 53.21 | 69.54 | 0.01 | 10.39 | ||||||||||||||||||||||||||
UCBA |
UNITED COMMUNITY BANCORP | IN | 548,302 | 23.20 | 16.15 | 27.98 | 54.13 | 70.28 | 1.43 | 12.98 | ||||||||||||||||||||||||||
PBSK |
POAGE BANKSHARES | KY | 450,159 | 12.99 | 7.70 | 37.16 | 72.71 | 80.41 | 2.01 | 13.54 | ||||||||||||||||||||||||||
PVBC |
PROVIDENT BANCORP | MA | 890,772 | 5.53 | 3.40 | 12.50 | 85.31 | 88.71 | 5.08 | 13.17 | ||||||||||||||||||||||||||
RNDB |
RANDOLPH BANCORP | MA | 533,539 | 4.95 | 8.42 | 48.76 | 76.34 | 84.76 | 10.36 | 14.97 | ||||||||||||||||||||||||||
WEBK |
WELLESLEY BANCORP | MA | 819,586 | 12.72 | 1.76 | 53.89 | 82.91 | 84.67 | 12.87 | 7.33 | ||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP | MD | 526,310 | 5.89 | 10.70 | 37.78 | 73.56 | 84.26 | 11.95 | 9.73 | ||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP | MD | 801,183 | 7.50 | 3.61 | 39.58 | 82.61 | 86.22 | 12.04 | 11.54 | ||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL | MN | 722,080 | 13.64 | 1.31 | 20.30 | 81.95 | 83.26 | 0.00 | 11.36 | ||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP | NE | 305,633 | 12.28 | 0.15 | 19.97 | 83.52 | 83.67 | 2.01 | 11.67 | ||||||||||||||||||||||||||
MGYR |
MAGYAR BANCORP | NJ | 607,831 | 4.63 | 8.23 | 30.81 | 79.57 | 87.80 | 5.65 | 8.23 | ||||||||||||||||||||||||||
MSBF |
MB BANCORP | NJ | 563,980 | 5.41 | 4.12 | 30.04 | 85.25 | 89.37 | 10.66 | 12.37 | ||||||||||||||||||||||||||
CARV |
CARVER BANCORP | NY | 694,186 | 23.77 | 6.18 | 19.68 | 68.16 | 74.34 | 3.60 | 8.01 | ||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK | NY | 553,389 | 6.49 | 2.07 | 52.87 | 80.82 | 82.89 | 6.32 | 10.28 | ||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES | NY | 312,853 | 7.15 | 2.51 | 70.37 | 85.20 | 87.71 | 20.63 | 10.01 | ||||||||||||||||||||||||||
PCSB |
PCSB FINANCIAL CORP | NY | 1,456,724 | 18.51 | 16.94 | 17.87 | 60.36 | 77.30 | 4.73 | 19.54 | ||||||||||||||||||||||||||
PDLB |
PDL COMMUNITY BANCORP | NY | 947,938 | 8.80 | 0.42 | 40.75 | 86.82 | 87.24 | 2.82 | 17.48 |
124
KELLER & COMPANY Dublin, Ohio (614) 766-1426 |
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Northeast, Southeast
Asset Size: < $950 Million
Stock trades on: NASDAQ or NYSE
No Recent Acquisition Activity
Total Assets ($000) |
Cash & Securities/ Assets (%) |
MBS/ Assets (%) |
1-4 Fam. Loans/ Assets (%) |
Total Net Loans/ Assets (%) |
Total Net Loans & MBS/Assets (%) |
Borrowed Funds/ Assets (%) |
Equity/ Assets (%) |
|||||||||||||||||||||||||||||
PYRAMAX F.S.B. | WI | 482,617 | 5.82 | 10.77 | 25.77 | 76.50 | 87.27 | 5.73 | 7.81 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP |
< 950,000 | < 20.00 | <16.00 | <72.00 | |
60.00 - 88.00 |
|
|
70.00 - 90.00 |
|
< 22.00 | |
7.00 - 26.00 |
| ||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
OH | 132,160 | 12.00 | 0.00 | 54.57 | 77.51 | 77.51 | 0.00 | 20.80 | ||||||||||||||||||||||||||
ESSA |
ESSA BANCORP |
PA | 1,820,924 | 9.11 | 13.55 | 35.83 | 70.91 | 84.46 | 20.91 | 9.74 | ||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
PA | 944,329 | 17.30 | 14.66 | 35.54 | 61.88 | 76.54 | 13.38 | 13.98 | ||||||||||||||||||||||||||
CWAY |
COASTWAY BANCORP |
RI | 779,976 | 6.25 | 0.00 | 49.83 | 84.90 | 84.90 | 27.29 | 9.21 | ||||||||||||||||||||||||||
FFBW |
FFBW, INC |
WI | 260,573 | 9.00 | 15.01 | 28.98 | 67.73 | 82.74 | 4.89 | 22.66 | ||||||||||||||||||||||||||
WSBF |
WATERSTONE FINANCIAL |
WI | 1,836,338 | 8.14 | 5.95 | 32.26 | 70.87 | 76.82 | 23.65 | 21.64 |
125
KELLER & COMPANY Dublin, Ohio (614) 766-1426 |
EXHIBIT 35 |
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Northeast, Southeast
Asset Size: < $950 Million
Stock trades on: NASDAQ or NYSE
No Recent Acquisition Activity
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) |
Core ROAA (%) |
Core ROAE (%) |
Net Interest Margin (2) (%) |
Operating Expenses/ Assets (%) |
Noninterest Income/ Assets (%) |
NPA/ Assets (%) |
REO/ Assets (%) |
Reserves/ Assets (%) |
||||||||||||||||||||||||||||||||
PYRAMAX F.S.B. |
WI | 482,617 | 0.09 | 1.08 | 3.13 | 3.77 | 0.62 | 0.38 | 0.00 | 0.64 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP |
< 950,000 | < 1.00 | < 8.00 | |
2.70- 4.20 |
|
|
1.50- 4.50 |
|
< 1.50 | < 2.25 | < 0.12 | > 0.40 | |||||||||||||||||||||||||||
SIFI |
SI FINANCIAL GROUP | CT | 1,598,222 | 0.49 | 4.63 | 2.93 | 2.47 | 0.69 | 0.56 | 0.07 | 0.81 | |||||||||||||||||||||||||||||
CHFN |
CHARTER FINANCIAL CORP | GA | 1,659,791 | 1.00 | 7.41 | 3.84 | 3.02 | 1.21 | 0.10 | 0.02 | 0.67 | |||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES | GA | 292,476 | 0.31 | 1.22 | 4.15 | 4.06 | 0.54 | 2.19 | 0.00 | 1.43 | |||||||||||||||||||||||||||||
WCFB |
WCF BANCORP | IA | 124,421 | 0.06 | 0.24 | 2.84 | 2.95 | 0.84 | 0.62 | 0.05 | 0.45 | |||||||||||||||||||||||||||||
IROQ |
IF BANCORP | IL | 619,310 | 0.34 | 2.51 | 3.07 | 2.54 | 0.78 | 1.34 | 0.05 | 0.92 | |||||||||||||||||||||||||||||
FCAP |
FIRST CAPITAL | IN | 765,381 | 1.02 | 9.57 | 3.61 | 2.66 | 0.88 | 0.88 | 0.50 | 0.47 | |||||||||||||||||||||||||||||
UCBA |
UNITED COMMUNITY BANCORP | IN | 548,302 | 0.78 | 5.85 | 2.95 | 2.73 | 0.82 | 0.13 | 0.01 | 0.69 | |||||||||||||||||||||||||||||
PBSK |
POAGE BANKSHARES | KY | 450,159 | (0.61 | ) | (4.36 | ) | 3.76 | 4.02 | 0.59 | 1.80 | 0.10 | 1.10 | |||||||||||||||||||||||||||
PVBC |
PROVIDENT BANCORP | MA | 890,772 | 0.72 | 5.56 | 4.16 | 2.75 | 1.06 | 1.08 | 0.00 | 1.15 | |||||||||||||||||||||||||||||
RNDB |
RANDOLPH BANCORP | MA | 533,539 | (0.48 | ) | (3.06 | ) | 3.25 | 5.56 | 2.24 | 0.57 | 0.04 | 0.72 | |||||||||||||||||||||||||||
WEBK |
WELLESLEY BANCORP | MA | 819,586 | 0.77 | 10.23 | 3.20 | 2.13 | 0.25 | 0.15 | 0.00 | 0.76 | |||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP | MD | 526,310 | 0.33 | 2.92 | 3.08 | 2.44 | 0.39 | 1.45 | 0.09 | 0.54 | |||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP | MD | 801,183 | 0.75 | 6.92 | 3.49 | 2.89 | 0.72 | 0.76 | 0.03 | 1.02 | |||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL | MN | 722,080 | 0.79 | 7.09 | 3.89 | 3.53 | 1.05 | 0.55 | 0.10 | 1.26 | |||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
NE | 305,633 | 0.49 | 3.72 | 3.68 | 2.86 | 0.81 | 1.48 | 0.07 | 1.50 | |||||||||||||||||||||||||||||
MGYR |
MAGYAR BANCORP |
NJ | 607,831 | 0.38 | 4.59 | 3.45 | 2.81 | 0.35 | 1.88 | 1.67 | 0.62 | |||||||||||||||||||||||||||||
MSBF |
MB BANCORP |
NJ | 563,980 | 0.79 | 6.19 | 3.42 | 0.26 | 0.15 | 0.85 | 0.00 | 0.98 | |||||||||||||||||||||||||||||
CARV |
CARVER BANCORP |
NY | 694,186 | (0.64 | ) | (8.81 | ) | 2.95 | 4.20 | 2.68 | 1.16 | 0.16 | 0.74 | |||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
NY | 553,389 | 0.57 | 5.21 | 3.38 | 2.88 | 0.97 | 0.57 | 0.01 | 0.80 | |||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
NY | 312,853 | 0.26 | 2.51 | 2.90 | 3.41 | 1.15 | 0.03 | 0.00 | 0.43 | |||||||||||||||||||||||||||||
PCSB |
PCSB FINANCIAL CORP |
NY | 1,456,724 | 0.39 | 1.97 | 2.90 | 2.52 | 0.18 | 0.65 | 0.01 | 0.32 | |||||||||||||||||||||||||||||
PDLB |
PDL COMMUNITY BANCORP |
NY | 947,938 | 0.28 | 1.69 | 3.98 | 3.98 | 0.34 | 0.98 | 0.00 | 1.20 |
126
KELLER & COMPANY Dublin, Ohio (614) 766-1426 |
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Northeast, Southeast
Asset Size: < $950 Million
Stock trades on: NASDAQ or NYSE
No Recent Acquisition Activity
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) |
Core ROAA (%) |
Core ROAE (%) |
Net Interest Margin (2) (%) |
Operating Expenses/ Assets (%) |
Noninterest Income/ Assets (%) |
NPA/ Assets (%) |
REO / Assets (%) |
Reserves/ Assets (%) |
||||||||||||||||||||||||||||||||
PYRAMAX F.S.B. |
WI | 482,617 | 0.09 | 1.08 | 3.13 | 3.77 | 0.62 | 0.38 | 0.00 | 0.64 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP |
< 950,000 | < 1.00 | < 8.00 | |
2.70- 4.20 |
|
|
1.50- 4.50 |
|
< 1.50 | < 2.25 | < 0.12 | > 0.40 | |||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP | OH | 132,160 | 0.31 | 1.68 | 3.29 | 4.20 | 1.48 | 0.59 | 0.00 | 0.90 | |||||||||||||||||||||||||||||
ESSA |
ESSA BANCORP | PA | 1,820,924 | 0.43 | 4.26 | 2.79 | 2.24 | 0.47 | 0.83 | 0.07 | 0.58 | |||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP | PA | 944,329 | 0.93 | 6.33 | 2.94 | 1.59 | 0.24 | 1.49 | 0.01 | 0.51 | |||||||||||||||||||||||||||||
CWAY |
COASTWAY BANCORP | RI | 779,976 | 0.46 | 4.68 | 3.16 | 2.84 | 0.94 | 1.07 | 0.54 | 0.41 | |||||||||||||||||||||||||||||
FFBW |
FFBW, INC | WI | 260,573 | 0.07 | 0.41 | 4.74 | 4.41 | 0.50 | 0.48 | 0.12 | 0.69 | |||||||||||||||||||||||||||||
WSBF |
WATERSTONE FINANCIAL | Wl | 1,836,338 | 1.54 | 6.97 | 3.20 | 7.24 | 6.73 | 0.54 | 0.18 | 0.72 |
127
KELLER & COMPANY Dublin, Ohio (614) 766-1426 |
EXHIBIT 36 |
FINAL COMPARABLE GROUP
BALANCE SHEET RATIOS
Most Recent Quarter
Total Assets ($000) |
Cash & Securities/ Assets (%) |
MBS/ Assets (%) |
1-4 Fam. Loans/ Assets (%) |
Total Net Loans/ Assets (%) |
Total Net Loans & MBS/ Assets (%) |
Borrowed Funds/ Assets (%) |
Equity/ Assets (%) |
|||||||||||||||||||||||||||||
PYRAMAX F.S.B. |
WI |
482,617 | 5.82 | 10.77 | 25.77 | 76.50 | 87.27 | 5.73 | 7.81 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP |
< 950,000 | < 20.00 | <16.00 | <72.00 | |
60.00 - 88.00 |
|
|
70.00 - 90.00 |
|
< 22.00 | |
7.00 - 26.00 |
| ||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP | OH | 132,160 | 12.00 | 0.00 | 54.57 | 77.51 | 77.51 | 0.00 | 20.80 | ||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES | GA | 292,476 | 10.33 | 4.54 | 52.69 | 77.66 | 82.20 | 3.55 | 25.87 | ||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP | NE | 305,633 | 12.28 | 0.15 | 19.97 | 83.52 | 83.67 | 2.01 | 11.67 | ||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES | NY | 312,853 | 7.15 | 2.51 | 70.37 | 85.20 | 87.71 | 20.63 | 10.01 | ||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP | MD | 526,310 | 5.89 | 10.70 | 37.78 | 73.56 | 84.26 | 11.95 | 9.73 | ||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK | NY | 553,389 | 6.49 | 2.07 | 52.87 | 80.82 | 82.89 | 6.32 | 10.28 | ||||||||||||||||||||||||||
IROQ |
IF BANCORP | IL | 619,310 | 6.35 | 15.20 | 22.39 | 73.78 | 88.98 | 8.81 | 13.18 | ||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL | MN | 722,080 | 13.64 | 1.31 | 20.30 | 81.95 | 83.26 | 0.00 | 11.36 | ||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP | MD | 801,183 | 7.50 | 3.61 | 39.58 | 82.61 | 86.22 | 12.04 | 11.54 | ||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP | PA | 944,329 | 17.30 | 14.66 | 35.54 | 61.88 | 76.54 | 13.38 | 13.98 | ||||||||||||||||||||||||||
AVERAGE | 520,972 | 9.89 | 5.48 | 40.60 | 77.85 | 83.32 | 7.87 | 13.84 | ||||||||||||||||||||||||||||
MEDIAN | 539,850 | 8.92 | 3.06 | 38.68 | 79.24 | 83.47 | 7.57 | 11.61 | ||||||||||||||||||||||||||||
HIGH | 944,329 | 17.30 | 15.20 | 70.37 | 85.20 | 88.98 | 20.63 | 25.87 | ||||||||||||||||||||||||||||
LOW | 132,160 | 5.89 | 0.00 | 19.97 | 61.88 | 76.54 | 0.00 | 9.73 |
128
KELLER & COMPANY Dublin, Ohio (614) 766-1426 |
EXHIBIT 37 |
FINAL COMPARABLE GROUP
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Total Assets ($000) |
Core ROAA (%) |
Core ROAE (%) |
Net Interest Margin (%) |
Operating Expenses/ Assets (%) |
Noninterest Income/ Assets (%) |
NPA/ Assets (%) |
REO / Assets (%) |
Reserves/ Assets (%) |
||||||||||||||||||||||||||||||||
PYRAMAX F.S.B. | WI | 482,617 | 0.09 | 1.08 | 3.13 | 3.77 | 0.62 | 0.38 | 0.00 | 0.64 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR INCLUSION IN COMPARABLE GROUP |
< 950,000 | < 1.00 | < 8.00 | |
2.70- 4.20 |
|
|
1.50- 4.50 |
|
< 1.50 | < 2.25 | < 0.12 | > 40 | |||||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP | OH | 132,160 | 0.31 | 1.68 | 3.29 | 4.20 | 1.48 | 0.59 | 0.00 | 0.90 | |||||||||||||||||||||||||||||
CFBI | COMM FIRST BANCSHARES | GA | 292,476 | 0.31 | 1.22 | 4.15 | 4.06 | 0.54 | 2.19 | 0.00 | 1.43 | |||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 305,633 | 0.49 | 3.72 | 3.68 | 2.86 | 0.81 | 1.48 | 0.07 | 1.50 | |||||||||||||||||||||||||||||
FSBC | FSB COMMUNITY BANKSHARES | NY | 312,853 | 0.26 | 2.51 | 2.90 | 3.41 | 1.15 | 0.03 | 0.00 | 0.43 | |||||||||||||||||||||||||||||
HBK | HAMILTON BANCORP | MD | 526,310 | 0.33 | 2.92 | 3.08 | 2.44 | 0.39 | 1.45 | 0.09 | 0.54 | |||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 553,389 | 0.57 | 5.21 | 3.38 | 2.88 | 0.97 | 0.57 | 0.01 | 0.80 | |||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 619,310 | 0.34 | 2.51 | 3.07 | 2.54 | 0.78 | 1.34 | 0.05 | 0.92 | |||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 722,080 | 0.79 | 7.09 | 3.89 | 3.53 | 1.05 | 0.55 | 0.10 | 1.26 | |||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 801,183 | 0.75 | 6.92 | 3.49 | 2.89 | 0.72 | 0.76 | 0.03 | 1.02 | |||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 944,329 | 0.93 | 6.33 | 2.94 | 1.59 | 0.24 | 1.49 | 0.01 | 0.51 | |||||||||||||||||||||||||||||
AVERAGE | 520,972 | 0.51 | 4.01 | 3.39 | 3.04 | 0.81 | 1.05 | 0.04 | 0.93 | |||||||||||||||||||||||||||||||
MEDIAN | 539,850 | 0.42 | 3.32 | 3.34 | 2.89 | 0.80 | 1.05 | 0.02 | 0.91 | |||||||||||||||||||||||||||||||
HIGH | 944,329 | 0.93 | 7.09 | 4.15 | 4.20 | 1.48 | 2.19 | 0.10 | 1.50 | |||||||||||||||||||||||||||||||
LOW | 132,160 | 0.26 | 1.22 | 2.90 | 1.59 | 0.24 | 0.03 | 0.00 | 0.43 |
129
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 38 |
COMPARABLE GROUP CHARACTERISTICS AND BALANCE SHEET TOTALS
Most Recent Quarter | ||||||||||||||||||||||||||||||||||||
Number of Offices |
Exchange |
Total Assets ($000) |
Int. Earning Assets ($000) |
Total Net Loans ($000) |
Goodwill and Intang. ($000) |
Total Deposits ($000) |
Total Equity ($000) |
|||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||
PYRAMAX F.S.B. | GREENFIELD | WI | 9 | | 482,617 | 445,564 | 368,021 | 0 | 404,560 | 37,691 | ||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||
CFBI | COMM FIRST BANCSHARES | COVINGTON | GA | 3 | NASDAQ | 292,476 | 279,906 | 227,140 | 0 | 216,730 | 75,649 | |||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP | CINCINNATI | OH | 3 | NASDAQ | 132,160 | 114,245 | 102,434 | 0 | 108,781 | 27,491 | |||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | ELMIRA | NY | 13 | NASDAQ | 553,389 | 489,968 | 447,261 | 13,752 | 456,851 | 56,886 | |||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | GRAND ISLAND | NE | 6 | NASDAQ | 305,633 | 256,175 | 255,260 | 2,299 | 266,300 | 35,659 | |||||||||||||||||||||||||
FSBC | FSB COMMUNITY BANKSHARES |
FAIRPORT | NY | 5 | NASDAQ | 312,853 | 282,830 | 266,546 | 894 | 216,761 | 31,315 | |||||||||||||||||||||||||
HBK | HAMILTON BANCORP | TOWSON | MD | 5 | NASDAQ | 526,310 | 468,272 | 387,165 | 9,176 | 408,703 | 51,228 | |||||||||||||||||||||||||
HMNF | HMN FINANCIAL | ROCHESTER | MN | 13 | NASDAQ | 722,080 | 676,749 | 591,779 | 2,856 | 640,821 | 82,056 | |||||||||||||||||||||||||
IROQ | IF BANCORP | WATSEKA | IL | 6 | NASDAQ | 619,310 | 572,062 | 456,942 | 791 | 489,708 | 81,613 | |||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PHILADELPHIA | PA | 6 | NASDAQ | 944,329 | 833,008 | 584,380 | 6,741 | 683,286 | 132,060 | |||||||||||||||||||||||||
SVBI | SEVERN BANCORP | ANNAPOLIS | MD | 4 | NASDAQ | 801,183 | 744,408 | 661,840 | 1,603 | 590,013 | 92,417 | |||||||||||||||||||||||||
Average | 6 | 520,972 | 471,762 | 398,075 | 3,811 | 407,795 | 66,637 | |||||||||||||||||||||||||||||
Median | 6 | 539,850 | 479,120 | 417,213 | 1,951 | 432,777 | 66,268 | |||||||||||||||||||||||||||||
High | 13 | 944,329 | 833,008 | 661,840 | 13,752 | 683,286 | 132,060 | |||||||||||||||||||||||||||||
Low | 3 | 132,160 | 114,245 | 102,434 | 0 | 108,781 | 27,491 |
130
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 39 |
BALANCE SHEET
ASSET COMPOSITIONMOST RECENT QUARTER
As a Percent of Total Assets | ||||||||||||||||||||||||||||||||||||||||||||||
Total Assets ($000) |
Cash & Invest. (%) |
MBS (%) |
Net Loans (%) |
Loan Loss Reserves (%) |
Repo- sessed Assets (%) |
Goodwill & Intang. (%) |
Non-Perf. Assets (%) |
Interest Earning Assets (%) |
Interest Bearing Liabilities (%) |
Capitalized Loan Servicing (%) |
||||||||||||||||||||||||||||||||||||
SUBJECT |
||||||||||||||||||||||||||||||||||||||||||||||
PYRAMAX BANK F.S.B. |
482,617 | 5.82 | 10.77 | 76.50 | 0.64 | 0.00 | 0.00 | 0.38 | 92.23 | 89.56 | 0.45 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP |
132,160 | 12.00 | 0.00 | 77.51 | 0.90 | 0.00 | 0.00 | 0.59 | 91.26 | 78.70 | 0.00 | ||||||||||||||||||||||||||||||||||
CFBI | COMM FIRST BANCSHARES |
292,476 | 10.33 | 4.54 | 77.66 | 1.43 | 0.00 | 0.00 | 2.19 | 91.14 | 63.78 | 0.00 | ||||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP |
305,633 | 12.28 | 0.15 | 83.52 | 1.50 | 0.07 | 0.47 | 1.48 | 93.74 | 75.40 | 0.28 | ||||||||||||||||||||||||||||||||||
FSBC | FSB COMMUNITY BANKSHARES |
312,853 | 7.15 | 2.51 | 85.20 | 0.43 | 0.00 | 0.00 | 0.03 | 95.10 | 87.31 | 0.29 | ||||||||||||||||||||||||||||||||||
HBK | HAMILTON BANCORP |
526,310 | 5.89 | 10.70 | 73.56 | 0.54 | 0.09 | 1.74 | 1.45 | 90.62 | 83.23 | 0.00 | ||||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK |
553,389 | 6.49 | 2.07 | 80.82 | 0.80 | 0.01 | 2.23 | 0.57 | 88.12 | 75.50 | 0.26 | ||||||||||||||||||||||||||||||||||
IROQ | IF BANCORP |
619,310 | 6.35 | 15.20 | 73.78 | 0.92 | 0.05 | 0.00 | 1.34 | 94.86 | 82.21 | 0.13 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL |
722,080 | 13.64 | 1.31 | 81.95 | 1.26 | 0.10 | 0.16 | 0.55 | 96.74 | 66.18 | 0.24 | ||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP |
801,183 | 7.50 | 3.61 | 82.61 | 1.02 | 0.03 | 0.14 | 0.76 | 94.16 | 76.49 | 0.06 | ||||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP |
944,329 | 17.30 | 14.66 | 61.88 | 0.51 | 0.01 | 0.71 | 1.49 | 93.56 | 84.48 | 0.00 | ||||||||||||||||||||||||||||||||||
Average |
520,972 | 9.89 | 5.48 | 77.85 | 0.93 | 0.04 | 0.55 | 1.05 | 92.93 | 77.33 | 0.13 | |||||||||||||||||||||||||||||||||||
Median |
539,850 | 8.92 | 3.06 | 79.24 | 0.91 | 0.02 | 0.15 | 1.05 | 93.65 | 77.60 | 0.10 | |||||||||||||||||||||||||||||||||||
High |
944,329 | 17.30 | 15.20 | 85.20 | 1.50 | 0.10 | 2.23 | 2.19 | 96.74 | 87.31 | 0.29 | |||||||||||||||||||||||||||||||||||
Low |
132,160 | 5.89 | 0.00 | 61.88 | 0.43 | 0.00 | 0.00 | 0.03 | 88.12 | 63.78 | 0.00 | |||||||||||||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
2,259,729 | 11.66 | 7.13 | 74.00 | 0.77 | 0.12 | 0.60 | 0.65 | 92.84 | 74.93 | 0.12 | |||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (39) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
979,320 | 13.78 | 7.61 | 70.13 | 0.76 | 0.13 | 0.28 | 0.67 | 92.20 | 74.83 | 0.16 | |||||||||||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
760,469 | 7.60 | 7.82 | 75.58 | 0.79 | 0.08 | 0.02 | 0.27 | 92.49 | 57.59 | 0.04 |
131
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 40 |
BALANCE SHEET COMPARISON
LIABILITIES AND EQUITYMOST RECENT QUARTER
As a Percent of Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities ($000) |
Total Equity ($000) |
Total Deposits (%) |
Total Borrowings (%) |
Other Liabilities (%) |
Preferred Equity (%) |
Common Equity (%) |
Acc. Other Compr. Income (%) |
Retained Earnings (%) |
Total Equity (%) |
Tier 1 Capital (%) |
Total Risk-Based Capital (%) |
|||||||||||||||||||||||||||||||||||||||
SUBJECT |
||||||||||||||||||||||||||||||||||||||||||||||||||
PYRAMAX BANK F.S.B. |
444,926 | 37,691 | 83.83 | 5.73 | 2.63 | 0.00 | 7.81 | (0.33 | ) | 8.18 | 7.81 | 7.46 | 10.55 | |||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
104,669 | 27,491 | 82.31 | 0.00 | (3.11 | ) | 0.00 | 20.80 | 0.00 | 10.87 | 20.80 | 15.65 | 17.50 | ||||||||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
216,827 | 75,649 | 74.10 | 3.55 | (3.52 | ) | 0.00 | 25.87 | (0.18 | ) | 15.71 | 25.87 | 20.58 | 30.76 | |||||||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
269,974 | 35,659 | 87.13 | 2.01 | (0.81 | ) | 0.00 | 11.67 | (0.01 | ) | 4.93 | 11.67 | 9.99 | 12.18 | |||||||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
281,538 | 31,315 | 69.29 | 20.63 | 0.08 | 0.00 | 10.01 | (0.08 | ) | 6.02 | 10.01 | 9.45 | 16.32 | ||||||||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
475,082 | 51,228 | 77.65 | 11.95 | 0.66 | 0.00 | 9.73 | (0.32 | ) | 6.18 | 9.73 | 8.07 | 11.66 | ||||||||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
496,503 | 56,886 | 82.56 | 6.32 | 0.84 | 0.00 | 10.28 | (0.05 | ) | 1.06 | 10.28 | 8.65 | 13.70 | ||||||||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
537,697 | 81,613 | 79.07 | 8.81 | (1.06 | ) | 0.00 | 13.18 | (0.47 | ) | 8.28 | 13.18 | 11.70 | 16.83 | |||||||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
640,024 | 82,056 | 88.75 | 0.00 | (0.11 | ) | 0.00 | 11.36 | (0.19 | ) | 3.33 | 11.36 | 10.97 | 13.93 | |||||||||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
708,766 | 92,417 | 73.64 | 12.04 | 0.20 | 0.00 | 11.53 | (0.01 | ) | 3.41 | 11.54 | 10.27 | 14.98 | ||||||||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
812,269 | 132,060 | 72.36 | 13.38 | 0.28 | 0.00 | 13.98 | (0.47 | ) | 2.91 | 13.98 | 13.09 | 21.05 | ||||||||||||||||||||||||||||||||||||
Average |
454,335 | 66,637 | 78.69 | 7.87 | (0.65 | ) | 0.00 | 13.84 | (0.18 | ) | 6.27 | 13.84 | 11.84 | 16.89 | ||||||||||||||||||||||||||||||||||||
Median |
485,793 | 66,268 | 78.36 | 7.57 | (0.02 | ) | 0.00 | 11.60 | (0.13 | ) | 5.47 | 11.60 | 10.62 | 15.65 | ||||||||||||||||||||||||||||||||||||
High |
812,269 | 132,060 | 88.75 | 20.63 | 0.84 | 0.00 | 25.87 | 0.00 | 15.71 | 25.87 | 20.58 | 30.76 | ||||||||||||||||||||||||||||||||||||||
Low |
104,669 | 27,491 | 69.29 | 0.00 | (3.52 | ) | 0.00 | 9.73 | (0.47 | ) | 1.06 | 9.73 | 8.07 | 11.66 | ||||||||||||||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
1,983,827 | 275,902 | 77.83 | 9.27 | 0.14 | 0.06 | 12.54 | (0.26 | ) | 6.35 | 12.60 | 11.79 | 18.88 | |||||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (39) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
877,240 | 102,079 | 79.03 | 8.05 | 0.28 | 0.00 | 12.58 | (0.26 | ) | 6.64 | 12.58 | 11.92 | 20.30 | |||||||||||||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
625,063 | 135,407 | 74.37 | 10.67 | (0.29 | ) | 0.00 | 15.26 | (0.19 | ) | 6.78 | 15.26 | 14.50 | 20.52 |
132
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 41 |
INCOME AND EXPENSE COMPARISON
TRAILING FOUR QUARTERS
($000)
Interest Income |
Interest Expense |
Net Interest Income |
Provision for Loss |
Gain (Loss) on Sale |
Total Non-Int. Income |
Total Non-Int. Expense |
Net Income Before Taxes |
Income Taxes |
Net Income |
Core Income |
||||||||||||||||||||||||||||||||||||
SUBJECT |
||||||||||||||||||||||||||||||||||||||||||||||
PYRAMAX BANK F.S.B. |
15,765 | 3,719 | 12,046 | 0 | 850 | 2,921 | 17,726 | (2,759 | ) | 932 | (3,690 | ) | 438 | |||||||||||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
4,427 | 670 | 3,757 | 92 | 0 | 1,950 | 5,545 | 620 | (48 | ) | 668 | 401 | |||||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
12,961 | 1,338 | 11,623 | 52 | 0 | 1,593 | 11,882 | 1,443 | 1,377 | 66 | 875 | ||||||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
11,026 | 1,608 | 9,418 | 1,263 | 0 | 2,482 | 8,730 | 2,170 | 1,051 | 1,119 | 1,330 | ||||||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
11,242 | 3,031 | 8,211 | 294 | 0 | 3,608 | 10,659 | 1,217 | 498 | 719 | 790 | ||||||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
18,013 | 3,613 | 14,400 | 1,575 | (2 | ) | 2,054 | 12,863 | 2,070 | 2,668 | (598 | ) | 1,698 | ||||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
20,546 | 3,996 | 16,550 | 897 | 0 | 5,360 | 15,958 | 5,055 | 147 | 4,903 | 3,181 | ||||||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
22,140 | 4,585 | 17,555 | 1,964 | 800 | 4,832 | 15,751 | 4,725 | 2,846 | 1,879 | 2,092 | ||||||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
28,178 | 1,860 | 26,318 | (378 | ) | 0 | 7,549 | 25,461 | 9,714 | 4,659 | 5,055 | 5,712 | |||||||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
33,544 | 7,552 | 25,992 | (375 | ) | 2 | 5,749 | 23,190 | 8,927 | 5,149 | 3,778 | 5,977 | |||||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
31,558 | 7,064 | 24,494 | 800 | 235 | 2,304 | 14,995 | 11,692 | 4,842 | 6,850 | 8,482 | ||||||||||||||||||||||||||||||||||
Average |
19,364 | 3,532 | 15,832 | 618 | 104 | 3,748 | 14,503 | 4,763 | 2,319 | 2,444 | 3,054 | |||||||||||||||||||||||||||||||||||
Median |
19,280 | 3,322 | 15,475 | 547 | 0 | 3,045 | 13,929 | 3,448 | 2,023 | 1,499 | 1,895 | |||||||||||||||||||||||||||||||||||
High |
33,544 | 7,552 | 26,318 | 1,964 | 800 | 7,549 | 25,461 | 11,692 | 5,149 | 6,850 | 8,482 | |||||||||||||||||||||||||||||||||||
Low |
4,427 | 670 | 3,757 | (378 | ) | (2 | ) | 1,593 | 5,545 | 620 | (48 | ) | (598 | ) | 401 | |||||||||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
76,684 | 15,104 | 61,580 | 1,687 | 487 | 19,731 | 43,761 | 29,215 | 11,371 | 18,455 | 19,107 | |||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (39) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
33,502 | 7,217 | 26,286 | 539 | 204 | 20,789 | 34,048 | 13,363 | 6,165 | 7,197 | 9,525 | |||||||||||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
28,614 | 5,968 | 22,646 | (440 | ) | (16 | ) | 32,888 | 43,203 | 12,454 | 5,066 | 7,388 | 8,190 |
133
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 42 |
INCOME AND EXPENSE COMPARISON
AS A PERCENTAGE OF AVERAGE ASSETS
Interest Income |
Interest Expense |
Net Interest Income |
Provision for Loss |
Gain (Loss) on Sale |
Total Non-Int. Income |
Total Non-Int. Expense |
Net Income Before Taxes |
Income Taxes |
Net Income |
Core Income |
||||||||||||||||||||||||||||||||||||
SUBJECT |
||||||||||||||||||||||||||||||||||||||||||||||
PYRAMAX BANK F.S.B. |
3.35 | 0.79 | 2.56 | 0.00 | 0.18 | 0.62 | 3.77 | (0.59 | ) | 0.20 | (0.79 | ) | 0.09 | |||||||||||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
3.40 | 0.51 | 2.88 | 0.07 | 0.00 | 1.50 | 4.25 | 0.48 | (0.04 | ) | 0.51 | 0.31 | |||||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
4.55 | 0.47 | 4.08 | 0.02 | 0.00 | 0.56 | 4.18 | 0.51 | 0.48 | 0.02 | 0.31 | ||||||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
4.04 | 0.59 | 3.45 | 0.46 | 0.00 | 0.91 | 3.20 | 0.79 | 0.38 | 0.41 | 0.49 | ||||||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
3.70 | 1.00 | 2.70 | 0.10 | 0.00 | 1.19 | 3.50 | 0.40 | 0.16 | 0.24 | 0.26 | ||||||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
3.49 | 0.70 | 2.79 | 0.31 | (0.00 | ) | 0.40 | 2.49 | 0.40 | 0.52 | (0.12 | ) | 0.33 | ||||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
3.66 | 0.71 | 2.95 | 0.16 | 0.00 | 0.95 | 2.84 | 0.90 | 0.03 | 0.87 | 0.57 | ||||||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
3.65 | 0.76 | 2.89 | 0.32 | 0.13 | 0.80 | 2.59 | 0.78 | 0.47 | 0.31 | 0.34 | ||||||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
3.91 | 0.26 | 3.65 | (0.05 | ) | 0.00 | 1.05 | 3.53 | 1.35 | 0.65 | 0.70 | 0.79 | |||||||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
4.22 | 0.95 | 3.27 | (0.05 | ) | 0.00 | 0.72 | 2.91 | 1.12 | 0.65 | 0.47 | 0.75 | |||||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
3.46 | 0.77 | 2.68 | 0.09 | 0.03 | 0.25 | 1.64 | 1.28 | 0.53 | 0.75 | 0.93 | ||||||||||||||||||||||||||||||||||
Average |
3.81 | 0.67 | 3.13 | 0.14 | 0.02 | 0.83 | 3.11 | 0.80 | 0.38 | 0.42 | 0.51 | |||||||||||||||||||||||||||||||||||
Median |
3.68 | 0.71 | 2.92 | 0.09 | 0.00 | 0.85 | 3.06 | 0.79 | 0.48 | 0.44 | 0.42 | |||||||||||||||||||||||||||||||||||
High |
4.55 | 1.00 | 4.08 | 0.46 | 0.13 | 1.50 | 4.25 | 1.35 | 0.65 | 0.87 | 0.93 | |||||||||||||||||||||||||||||||||||
Low |
3.40 | 0.26 | 2.68 | (0.05 | ) | (0.00 | ) | 0.25 | 1.64 | 0.40 | (0.04 | ) | (0.12 | ) | 0.26 | |||||||||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
3.74 | 0.64 | 3.09 | 0.08 | 0.01 | 0.84 | 2.81 | 1.03 | 0.40 | 0.84 | 0.87 | |||||||||||||||||||||||||||||||||||
MIDWEST THRIFTS (39) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
3.47 | 0.62 | 2.86 | 0.06 | 0.01 | 0.87 | 3.10 | 0.90 | 0.32 | 0.78 | 1.03 | |||||||||||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||||||||||||||
Average |
4.01 | 0.75 | 3.26 | (0.12 | ) | 0.00 | 0.57 | 3.66 | 0.79 | 0.35 | 0.96 | 1.06 |
134
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 43 |
YIELDS, COSTS AND EARNINGS RATIOS
TRAILING FOUR QUARTERS
Yield on Int. Earning Assets (%) |
Cost of Int. Bearing Liabilities (%) |
Net Interest Spread (%) |
Net Interest Margin * (%) |
ROAA (%) |
ROAE (%) |
Core ROAA (%) |
Core ROAE (%) |
|||||||||||||||||||||||||||
SUBJECT |
||||||||||||||||||||||||||||||||||
PYRAMAX BANK F.S.B. |
4.09 | 0.96 | 3.13 | 3.13 | (0.79 | ) | (9.14 | ) | 0.09 | 1.08 | ||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
3.88 | 0.63 | 3.24 | 3.29 | 0.51 | 2.79 | 0.31 | 1.68 | |||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
4.63 | 0.56 | 4.07 | 4.15 | 0.02 | 0.09 | 0.31 | 1.22 | |||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
4.30 | 0.68 | 3.63 | 3.68 | 0.41 | 3.13 | 0.49 | 3.72 | |||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
3.97 | 1.50 | 2.47 | 2.90 | 0.24 | 2.28 | 0.26 | 2.51 | |||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
3.85 | 0.88 | 2.97 | 3.08 | (0.12 | ) | (1.03 | ) | 0.33 | 2.92 | |||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
4.19 | 0.88 | 3.31 | 3.38 | 0.87 | 8.03 | 0.57 | 5.21 | |||||||||||||||||||||||||
IROQ |
IF BANCORP |
3.87 | 0.98 | 2.89 | 3.07 | 0.31 | 2.25 | 0.34 | 2.51 | |||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
4.16 | 0.30 | 3.86 | 3.89 | 0.70 | 6.28 | 0.79 | 7.09 | |||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
4.51 | 1.28 | 3.23 | 3.49 | 0.47 | 4.38 | 0.75 | 6.92 | |||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
3.79 | 1.09 | 2.70 | 2.94 | 0.75 | 5.11 | 0.93 | 6.33 | |||||||||||||||||||||||||
Average |
4.12 | 0.88 | 3.24 | 3.39 | 0.42 | 3.33 | 0.51 | 4.01 | ||||||||||||||||||||||||||
Median |
4.07 | 0.88 | 3.24 | 3.33 | 0.44 | 2.96 | 0.42 | 3.32 | ||||||||||||||||||||||||||
High |
4.63 | 1.50 | 4.07 | 4.15 | 0.87 | 8.03 | 0.93 | 7.09 | ||||||||||||||||||||||||||
Low |
3.79 | 0.30 | 2.47 | 2.90 | (0.12 | ) | (1.03 | ) | 0.26 | 1.22 | ||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||
Average |
4.07 | 0.86 | 3.22 | 3.37 | 0.84 | 6.84 | 0.87 | 7.08 | ||||||||||||||||||||||||||
MIDWEST THRIFTS (39) |
||||||||||||||||||||||||||||||||||
Average |
3.75 | 0.81 | 2.98 | 3.09 | 0.78 | 7.40 | 1.03 | 9.73 | ||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||
Average |
4.03 | 0.90 | 3.41 | 3.30 | 0.97 | 5.46 | 1.07 | 6.05 |
* | Based on average interest-earning assets. |
135
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 44 |
RESERVES AND SUPPLEMENTAL DATA
RESERVES AND SUPPLEMENTAL DATA | ||||||||||||||||||||||
Reserves/ Gross Loans (%) |
Reserves/ NPA (%) |
Net Chargeoffs/ Average Loans (%) |
Provisions/ Net Chargeoffs (%) |
Effective Tax Rate (%) |
||||||||||||||||||
SUBJECT |
||||||||||||||||||||||
PYRAMAX BANK F.S.B. |
0.83 | 167.59 | 0.00 | 0.00 | NM | |||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
0.81 | 34.32 | 0.91 | NM | 37.11 | ||||||||||||||||
SVBI |
SEVERN BANCORP |
1.18 | 135.05 | 0.17 | 0.00 | 48.26 | ||||||||||||||||
HMNF |
HMN FINANCIAL |
1.49 | 229.78 | 0.00 | (219.30 | ) | 43.11 | |||||||||||||||
IROQ |
IF BANCORP |
1.21 | 68.54 | 0.50 | 30.63 | 45.40 | ||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
0.97 | 140.15 | 0.24 | 82.35 | 21.52 | ||||||||||||||||
HBK |
HAMILTON BANCORP |
0.72 | 37.00 | 1.96 | 128.90 | NM | ||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
0.49 | NM | 0.00 | 0.00 | 30.14 | ||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
1.73 | 101.86 | (0.01 | ) | NM | 41.08 | |||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
1.78 | 65.45 | (0.03 | ) | 2.39 | 52.53 | |||||||||||||||
EFBI |
EAGLE FIN BANCORP |
1.07 | 151.53 | 0.11 | 0.00 | 19.22 | ||||||||||||||||
Average |
1.15 | 107.08 | 0.39 | 3.12 | 37.60 | |||||||||||||||||
Median |
1.13 | 101.86 | 0.14 | 1.20 | 41.08 | |||||||||||||||||
High |
1.78 | 229.78 | 1.96 | 128.90 | 52.53 | |||||||||||||||||
Low |
0.49 | 34.32 | (0.03 | ) | (219.30 | ) | 19.22 | |||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||
Average |
1.01 | 124.74 | 0.16 | (851.87 | ) | 33.03 | ||||||||||||||||
MIDWEST THRIFTS (39) |
||||||||||||||||||||||
Average |
1.02 | 119.42 | 0.21 | (1,419.52 | ) | 31.24 | ||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||
Average |
0.97 | 138.83 | 0.11 | (3,090.23 | ) | 29.66 |
136
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 45 |
FULL CONVERSION
COMPARABLE GROUP MARKET, PRICING AND FINANCIAL RATIOS
STOCK PRICES AS OF AUGUST 7, 2018
FINANCIAL DATA/ALL RATIOS MOST RECENT FOUR QUARTERS
Market Data | Pricing Ratios | Dividends | Financial Ratios | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Value ($M) |
Price/ Share ($) |
12 Mo. EPS ($) |
Bk. Value /Share ($) |
Price/ Earnings (X) |
Price/ Book Value (%) |
Price/ Assets (%) |
Price/ Tang. Bk. Val. (%) |
Price/ Core Earnings (X) |
12 Mo. Div./ Share ($) |
Dividend Yield (%) |
Payout Ratio (%) |
Equity/ Assets (%) |
Core ROAA (%) |
Core ROAE (%) |
||||||||||||||||||||||||||||||||||||||||||||||||
PYRAMAX BANK, F.S.B. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appraised valuemidpoint |
55,000 | 10.00 | 0.08 | 15.29 | NM | 65.42 | 10.40 | 64.07 | NM | 0.00 | 0.00 | 0.00 | 15.89 | 0.16 | 0.99 | |||||||||||||||||||||||||||||||||||||||||||||||
Minimum |
46,750 | 10.00 | 0.08 | 16.45 | NM | 60.81 | 8.96 | 59.44 | NM | 0.00 | 0.00 | 0.00 | 14.73 | 0.15 | 1.00 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum |
63,250 | 10.00 | 0.08 | 14.43 | NM | 69.30 | 11.80 | 67.98 | NM | 0.00 | 0.00 | 0.00 | 17.02 | 0.17 | 0.99 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum, as adjusted |
72,738 | 10.00 | 0.08 | 13.69 | NM | 73.07 | 13.36 | 71.79 | NM | 0.00 | 0.00 | 0.00 | 18.28 | 0.18 | 0.98 | |||||||||||||||||||||||||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
380,431 | 24.81 | 1.46 | 20.54 | 26.92 | 131.43 | 15.71 | 142.83 | 23.72 | 0.32 | 1.38 | 21.78 | 12.60 | 0.80 | 6.52 | |||||||||||||||||||||||||||||||||||||||||||||||
Median |
84,273 | 19.23 | 0.73 | 15.60 | 22.28 | 124.48 | 15.22 | 129.49 | 19.59 | 0.20 | 0.76 | 9.79 | 11.65 | 0.75 | 6.19 | |||||||||||||||||||||||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
167,966 | 16.12 | 0.42 | 13.44 | 22.31 | 120.73 | 18.72 | 121.19 | 18.94 | 0.37 | 2.17 | 0.00 | 15.26 | 0.96 | 8.11 | |||||||||||||||||||||||||||||||||||||||||||||||
Median |
79,652 | 15.53 | 0.43 | 12.74 | 22.31 | 120.82 | 18.98 | 120.96 | 18.94 | 0.00 | 0.00 | 0.00 | 15.47 | 0.30 | 2.99 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP (10) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
75,099 | 16.41 | 0.55 | 15.19 | 37.56 | 108.65 | 15.04 | 116.40 | 37.49 | 0.17 | 0.84 | 18.75 | 13.84 | 0.51 | 4.01 | |||||||||||||||||||||||||||||||||||||||||||||||
Median |
68,880 | 17.05 | 0.39 | 15.58 | 31.53 | 110.18 | 12.88 | 114.70 | 29.15 | 0.00 | 0.00 | 0.00 | 11.61 | 0.42 | 3.32 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
83,750 | 11.11 | 0.01 | 10.04 | 92.58 | 110.66 | 28.63 | 110.66 | 92.58 | 0.00 | 0.00 | 0.00 | 25.87 | 0.31 | 1.22 | ||||||||||||||||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
26,369 | 16.35 | 0.41 | 17.05 | 39.88 | 95.89 | 19.95 | 95.89 | 65.40 | 0.00 | 0.00 | 0.00 | 20.80 | 0.31 | 1.68 | ||||||||||||||||||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
54,010 | 20.43 | 1.85 | 21.52 | 11.04 | 94.93 | 9.76 | 125.18 | 17.03 | 0.92 | 4.50 | 49.73 | 10.28 | 0.57 | 5.21 | ||||||||||||||||||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
35,698 | 10.76 | 0.34 | 10.75 | 31.65 | 100.09 | 11.68 | 106.96 | 26.90 | 0.00 | 0.00 | 0.00 | 11.67 | 0.49 | 3.72 | ||||||||||||||||||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
34,457 | 17.75 | 0.37 | 16.13 | 47.97 | 110.04 | 11.01 | 113.27 | 43.29 | 0.00 | 0.00 | 0.00 | 10.01 | 0.26 | 2.51 | ||||||||||||||||||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
53,554 | 15.70 | (0.18 | ) | 15.02 | 31.40 | 104.53 | 10.18 | 127.33 | 31.40 | 0.00 | 0.00 | 0.00 | 9.73 | 0.33 | 2.92 | |||||||||||||||||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
90,535 | 20.10 | 1.12 | 18.22 | 17.95 | 110.32 | 12.54 | 114.33 | 15.83 | 0.00 | 0.00 | 0.00 | 11.36 | 0.79 | 7.09 | ||||||||||||||||||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
93,005 | 23.90 | 0.48 | 20.97 | 49.79 | 113.97 | 15.02 | 115.07 | 44.26 | 0.36 | 1.51 | 75.00 | 13.18 | 0.34 | 2.51 | ||||||||||||||||||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
173,666 | 19.30 | 0.76 | 14.68 | 25.39 | 131.47 | 18.39 | 138.55 | 20.53 | 0.33 | 1.71 | 43.42 | 13.98 | 0.93 | 6.33 | ||||||||||||||||||||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
105,942 | 8.65 | 0.31 | 7.55 | 27.90 | 114.57 | 13.22 | 116.73 | 17.65 | 0.06 | 0.69 | 19.35 | 11.54 | 0.75 | 6.92 |
137
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 46 |
VALUATION ANALYSIS AND CALCULATIONFULL CONVERSION
PYRAMAX BANK, F.S.B.
Pricing ratios and parameters:
Symbol | Midpoint Ratios |
Comparable Group | All Thrifts | |||||||||||||||||||
Pro Forma |
Average | Median | Average | Median | ||||||||||||||||||
Price to earnings |
P/E | NM | 37.56 | 31.53 | 26.92 | 22.28 | ||||||||||||||||
Price to core earnings |
P/CE | NM | 37.49 | 29.15 | 23.72 | 19.59 | ||||||||||||||||
Price to book value |
P/B | 65.42 | 108.65 | 110.18 | 131.43 | 124.48 | ||||||||||||||||
Price to tangible book value |
P/TB | 64.07 | 116.40 | 114.70 | 142.83 | 129.49 | ||||||||||||||||
Price to assets |
P/A | 10.40 | 15.04 | 12.88 | 15.71 | 15.22 | ||||||||||||||||
Pre conversion earnings |
(Y) | $ | (3,691,000 | ) | ||||||||||||||||||
Pre conversion core earnings |
(CY) | $ | 438,000 | |||||||||||||||||||
Pre conversion book value |
(B) | $ | 37,690,000 | |||||||||||||||||||
Pre conversion tang. book value |
(TB) | $ | 39,459,000 | |||||||||||||||||||
Pre conversion assets |
(A) | $ | 482,617,000 | |||||||||||||||||||
Conversion expense |
(X) | 2.73 | % | Percent sold | (PCT | ) | 99.00 | % | ||||||||||||||
ESOP stock purchase |
(E) | 8.00 | % | Option % granted | (OP | ) | 10.00 | % | ||||||||||||||
ESOP cost of borrowings, net |
(S) | 0.00 | % | Est. option value | (OV | ) | 29.95 | % | ||||||||||||||
ESOP term (yrs.) |
(T) | 25 | Option maturity | (OM | ) | 10 | ||||||||||||||||
RRP amount |
(M) | 4.00 | % | Option % taxable | (OT | ) | 25.00 | % | ||||||||||||||
RRP term (yrs.) |
(N) | 5 | Price per share | (P | ) | $ | 10.00 | |||||||||||||||
Tax rate |
(TAX) | 21.00 | % | |||||||||||||||||||
Investment rate of return, pretax |
2.85 | % | ||||||||||||||||||||
Investment rate of return, net |
(RR) | 2.25 | % |
Formulae to indicate value after conversion:
1. P/CE method: | Value = | P/CE*CY | = | $55,000,000 | ||||||
((1-P/CE*(PCT)*((1-X-E-M)*(RR*(1-TAX))-((1-TAX)*E/T)-((1-TAX)*M/N)-((1-TAX)*OT)*(OP*OV)/OM))) | ||||||||||
2. P/B method: | Value = | P/B*(B) | = | $55,000,000 | ||||||
(1-PB*(PCT)*(1-X-E-M)) | ||||||||||
3. P/A method: | Value = | P/A*(A) | = | $55,000,000 | ||||||
(1-PA*(PCT)*(1-X-E-M)) |
VALUATION CORRELATION AND CONCLUSIONS:
Foundation Shares Issued |
Public Shares Sold |
Gross Proceeds of Public Offering |
MHC Shares Issued |
Total Shares Issued |
TOTAL VALUE |
|||||||||||||||||||
Midpoint |
55,000 | 5,445,000 | $ | 54,450,000 | 0 | 5,500,000 | $ | 55,000,000 | ||||||||||||||||
Minimum |
46,750 | 4,628,250 | $ | 46,282,500 | 0 | 4,675,000 | $ | 46,750,000 | ||||||||||||||||
Maximum |
63,250 | 6,261,750 | $ | 62,617,500 | 0 | 6,325,000 | $ | 63,250,000 | ||||||||||||||||
Maximum, as adjusted |
72,738 | 7,201,013 | $ | 72,010,125 | 0 | 7,273,750 | $ | 72,737,500 |
138
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 47 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the MINIMUM
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 46,282,500 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 44,782,500 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 44,782,500 | ||||||
Less: Stock-based benefit plans (2) |
5,610,000 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 39,072,500 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 879,717 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
118,184 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
295,460 | |||||||
Less: Option expense, net of applicable taxes |
132,887 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 333,186 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Net | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase (decrease) |
333,186 | 333,186 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,357,814 | ) | $ | 771,186 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
39,072,500 | 39,072,500 | ||||||
Tax benefit of foundation contribution |
119,175 | 119,175 | ||||||
|
|
|
|
|||||
After conversion |
$ | 76,881,675 | $ | 78,650,675 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
39,072,500 | |||||||
Tax benefit of foundation contribution |
119,175 | |||||||
|
|
|||||||
After conversion |
$ | 521,808,675 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
139
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 48 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the MIDPOINT
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 54,450,000 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 52,950,000 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 52,950,000 | ||||||
Less: Stock-based benefit plans (2) |
6,600,000 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 46,250,000 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 1,041,319 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
139,040 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
347,600 | |||||||
Less: Option expense, net of applicable taxes |
156,338 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 398,341 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Regular | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase |
398,341 | 398,341 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,292,659 | ) | $ | 836,341 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
46,250,000 | 46,250,000 | ||||||
Tax benefit of foundation contribution |
136,500 | 136,500 | ||||||
|
|
|
|
|||||
After conversion |
$ | 84,076,500 | $ | 85,845,500 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
46,250,000 | |||||||
Tax benefit of foundation contribution |
136,500 | |||||||
|
|
|||||||
After conversion |
$ | 529,003,500 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
140
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 49 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the MAXIMUM
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 62,617,500 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 61,117,500 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 61,117,500 | ||||||
Less: Stock-based benefit plans (2) |
7,590,000 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 53,427,500 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 1,202,920 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
159,896 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
399,740 | |||||||
Less: Option expense, net of applicable taxes |
179,788 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 463,496 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Regular | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase |
463,496 | 463,496 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,227,504 | ) | $ | 901,496 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
53,427,500 | 53,427,500 | ||||||
Tax benefit of foundation contribution |
153,825 | 153,825 | ||||||
|
|
|
|
|||||
After conversion |
$ | 91,271,325 | $ | 93,040,325 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
53,427,500 | |||||||
Tax benefit of foundation contribution |
153,825 | |||||||
|
|
|||||||
After conversion |
$ | 536,198,325 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
141
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 50 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the Maximum, as adjusted
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 72,010,125 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 70,510,125 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 70,510,125 | ||||||
Less: Stock-based benefit plans (2) |
8,728,500 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 61,681,625 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 1,388,762 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
183,880 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
459,701 | |||||||
Less: Option expense, net of applicable taxes |
206,756 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 538,424 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Regular | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase |
538,424 | 538,424 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,152,576 | ) | $ | 976,424 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
61,681,625 | 61,681,625 | ||||||
Tax benefit of foundation contribution |
173,749 | 173,749 | ||||||
|
|
|
|
|||||
After conversion |
$ | 99,545,374 | $ | 101,314,374 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
61,681,625 | |||||||
Tax benefit of foundation contribution |
173,749 | |||||||
|
|
|||||||
After conversion |
$ | 544,472,374 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
142
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 51 |
MINORITY OFFERING SUMMARY OF VALUATION PREMIUM OR DISCOUNT
PYRAMAX BANK, F.S.B.
Premium or (discount) from comparable group. |
||||||||||||
Pyramax Bank, F.S.B. | Averaqe | Median | ||||||||||
Midpoint: |
||||||||||||
Price/earnings |
NM x | NM | NM | |||||||||
Price/book value |
65.42 | % * | -39.79 | % | -40.63 | % | ||||||
Price/assets |
10.40 | % | -30.86 | % | -19.28 | % | ||||||
Price/tangible book value |
64.07 | % | -44.96 | % | -44.14 | % | ||||||
Price/core earnings |
NM x | NM | NM | |||||||||
Minimum of range: |
||||||||||||
Price/earnings |
NM x | NM | NM | |||||||||
Price/book value |
60.81 | % * | -44.03 | % | -44.81 | % | ||||||
Price/assets |
8.96 | % | -40.42 | % | -30.44 | % | ||||||
Price/tangible book value |
59.44 | % | -48.93 | % | -48.18 | % | ||||||
Price/core earnings |
NM x | NM | NM | |||||||||
Maximum of range: |
||||||||||||
Price/earnings |
NM x | NM | NM | |||||||||
Price/book value |
69.30 | % * | -36.22 | % | -37.10 | % | ||||||
Price/assets |
11.80 | % | -21.56 | % | -8.42 | % | ||||||
Price/tangible book value |
67.98 | % | -41.60 | % | -40.73 | % | ||||||
Price/core earnings |
NM x | NM | NM | |||||||||
Super maximum of range: |
||||||||||||
Price/earnings |
NM x | NM | NM | |||||||||
Price/book value |
73.07 | % * | -32.75 | % | -33.68 | % | ||||||
Price/assets |
13.36 | % | -11.16 | % | 3.72 | % | ||||||
Price/tangible book value |
71.79 | % | -38.32 | % | -37.41 | % | ||||||
Price/core earnings |
NM x | NM | NM |
* | Represents pricing ratio associated with primary valuation method. |
143
KELLER & COMPANY Dublin, Ohio 614-766-1426 |
EXHIBIT 52 |
STAGE ONE MHC CONVERSION
COMPARABLE GROUP MARKET, PRICING AND FINANCIAL RATIOS
STOCK PRICES AS OF AUGUST 7, 2018
FINANCIAL DATA/ALL RATIOS MOST RECENT FOUR QUARTERS
Market Data | Pricing Ratios | Dividends | Financial Ratios | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Value ($M) |
Price/ Share ($) |
12 Mo. EPS ($) |
Bk. Value /Share ($) |
Price/ Earnings (X) |
Price/ Book Value (%) |
Price/ Assets (%) |
Price/ Tang. Bk. Val. (%) |
Price/ Core Earnings (X) |
12 Mo. Div./ Share ($) |
Dividend Yield (%) |
Payout Ratio (%) |
Equity/ Assets (%) |
Core ROAA (%) |
Core ROAE (%) |
||||||||||||||||||||||||||||||||||||||||||||||||
PYRAMAX BANK, F.S.B. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appraised valuemidpoint |
55,000 | 10.00 | 0.02 | 10.38 | NM | 96.34 | 10.96 | 96.25 | NM | 0.00 | 0.00 | 0.00 | 11.37 | 0.11 | 0.98 | |||||||||||||||||||||||||||||||||||||||||||||||
Minimum |
46,750 | 10.00 | 0.02 | 11.54 | NM | 86.73 | 9.37 | 86.58 | NM | 0.00 | 0.00 | 0.00 | 10.81 | 0.11 | 0.99 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum |
63,250 | 10.00 | 0.02 | 9.53 | NM | 105.04 | 12.52 | 104.93 | NM | 0.00 | 0.00 | 0.00 | 11.93 | 0.11 | 0.96 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum, as adjusted |
72,738 | 10.00 | 0.02 | 8.78 | NM | 113.90 | 14.30 | 113.77 | NM | 0.00 | 0.00 | 0.00 | 12.56 | 0.12 | 0.95 | |||||||||||||||||||||||||||||||||||||||||||||||
ALL THRIFTS (122) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
380,431 | 24.81 | 1.46 | 20.54 | 26.92 | 131.43 | 15.71 | 142.83 | 23.72 | 0.32 | 1.38 | 21.78 | 12.60 | 0.80 | 6.52 | |||||||||||||||||||||||||||||||||||||||||||||||
Median |
84,273 | 19.23 | 0.73 | 15.60 | 22.28 | 124.48 | 15.22 | 129.49 | 19.59 | 0.20 | 0.76 | 9.79 | 11.65 | 0.75 | 6.19 | |||||||||||||||||||||||||||||||||||||||||||||||
WISCONSIN THRIFTS (4) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
167,966 | 16.12 | 0.42 | 13.44 | 22.31 | 120.73 | 18.72 | 121.19 | 18.94 | 0.37 | 2.17 | 0.00 | 15.26 | 0.96 | 8.11 | |||||||||||||||||||||||||||||||||||||||||||||||
Median |
79,652 | 15.53 | 0.43 | 12.74 | 22.31 | 120.82 | 18.98 | 120.96 | 18.94 | 0.00 | 0.00 | 0.00 | 15.47 | 0.30 | 2.99 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP (10) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average |
75,099 | 16.41 | 0.55 | 15.19 | 37.56 | 108.65 | 15.04 | 116.40 | 37.49 | 0.17 | 0.84 | 18.75 | 13.84 | 0.51 | 4.01 | |||||||||||||||||||||||||||||||||||||||||||||||
Median |
68,880 | 17.05 | 0.39 | 15.58 | 31.53 | 110.18 | 12.88 | 114.70 | 29.15 | 0.00 | 0.00 | 0.00 | 11.61 | 0.42 | 3.32 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CFBI |
COMM FIRST BANCSHARES |
83,750 | 11.11 | 0.01 | 10.04 | 92.58 | 110.66 | 28.63 | 110.66 | 92.58 | 0.00 | 0.00 | 0.00 | 25.87 | 0.31 | 1.22 | ||||||||||||||||||||||||||||||||||||||||||||||
EFBI |
EAGLE FIN BANCORP |
26,369 | 16.35 | 0.41 | 17.05 | 39.88 | 95.89 | 19.95 | 95.89 | 65.40 | 0.00 | 0.00 | 0.00 | 20.80 | 0.31 | 1.68 | ||||||||||||||||||||||||||||||||||||||||||||||
ESBK |
ELMIRA SAVINGS BANK |
54,010 | 20.43 | 1.85 | 21.52 | 11.04 | 94.93 | 9.76 | 125.18 | 17.03 | 0.92 | 4.50 | 49.73 | 10.28 | 0.57 | 5.21 | ||||||||||||||||||||||||||||||||||||||||||||||
EQFN |
EQUITABLE FINANCIAL CORP |
35,698 | 10.76 | 0.34 | 10.75 | 31.65 | 100.09 | 11.68 | 106.96 | 26.90 | 0.00 | 0.00 | 0.00 | 11.67 | 0.49 | 3.72 | ||||||||||||||||||||||||||||||||||||||||||||||
FSBC |
FSB COMMUNITY BANKSHARES |
34,457 | 17.75 | 0.37 | 16.13 | 47.97 | 110.04 | 11.01 | 113.27 | 43.29 | 0.00 | 0.00 | 0.00 | 10.01 | 0.26 | 2.51 | ||||||||||||||||||||||||||||||||||||||||||||||
HBK |
HAMILTON BANCORP |
53,554 | 15.70 | (0.18 | ) | 15.02 | 31.40 | 104.53 | 10.18 | 127.33 | 31.40 | 0.00 | 0.00 | 0.00 | 9.73 | 0.33 | 2.92 | |||||||||||||||||||||||||||||||||||||||||||||
HMNF |
HMN FINANCIAL |
90,535 | 20.10 | 1.12 | 18.22 | 17.95 | 110.32 | 12.54 | 114.33 | 15.83 | 0.00 | 0.00 | 0.00 | 11.36 | 0.79 | 7.09 | ||||||||||||||||||||||||||||||||||||||||||||||
IROQ |
IF BANCORP |
93,005 | 23.90 | 0.48 | 20.97 | 49.79 | 113.97 | 15.02 | 115.07 | 44.26 | 0.36 | 1.51 | 75.00 | 13.18 | 0.34 | 2.51 | ||||||||||||||||||||||||||||||||||||||||||||||
PBIP |
PRUDENTIAL BANCORP |
173,666 | 19.30 | 0.76 | 14.68 | 25.39 | 131.47 | 18.39 | 138.55 | 20.53 | 0.33 | 1.71 | 43.42 | 13.98 | 0.93 | 6.33 | ||||||||||||||||||||||||||||||||||||||||||||||
SVBI |
SEVERN BANCORP |
105,942 | 8.65 | 0.31 | 7.55 | 27.90 | 114.57 | 13.22 | 116.73 | 17.65 | 0.06 | 0.69 | 19.35 | 11.54 | 0.75 | 6.92 |
144
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 53 |
VALUATION ANALYSIS AND CALCULATIONFIRST STAGE MHC OFFERING
PYRAMAX BANK, F.S.B.
Pricing ratios and parameters:
Midpoint Ratios |
Comparable Group |
All Thrifts | ||||||||||||||||||||
Pro Forma |
Symbol | Average |
Median |
Average | Median | |||||||||||||||||
Price to earnings |
P/E | NM | 37.56 | 31.53 | 26.92 | 22.28 | ||||||||||||||||
Price to core earnings |
P/CE | NM | 37.49 | 29.15 | 23.72 | 19.59 | ||||||||||||||||
Price to book value |
P/B | 96.34 | 108.65 | 110.18 | 131.43 | 124.48 | ||||||||||||||||
Price to tangible book value |
P/TB | 96.25 | 116.40 | 114.70 | 142.83 | 129.49 | ||||||||||||||||
Price to assets |
P/A | 10.96 | 15.04 | 12.88 | 15.71 | 15.22 | ||||||||||||||||
Pre conversion earnings |
(Y) | $ | (3,691,000 | ) | ||||||||||||||||||
Pre conversion core earnings |
(CY) | $ | 438,000 | |||||||||||||||||||
Pre conversion book value |
(B) | $ | 37,690,000 | |||||||||||||||||||
Pre conversion tang. book value |
(TB) | $ | 39,459,000 | |||||||||||||||||||
Pre conversion assets |
(A) | $ | 482,617,000 | |||||||||||||||||||
Conversion expense |
(X) | 2.73 | % | Percent sold | (PCT | ) | 44.00 | % | ||||||||||||||
ESOP stock purchase |
(E) | 3.92 | % | Option % granted | (OP | ) | 4.90 | % | ||||||||||||||
ESOP cost of borrowings, net |
(S) | 0.00 | % | Est. option value | (OV | ) | 29.95 | % | ||||||||||||||
ESOP term (yrs.) |
(T) | 25 | Option maturity | (OM | ) | 10 | ||||||||||||||||
RRP amount |
(M) | 1.96 | % | Option % taxable | (OT | ) | 25.00 | % | ||||||||||||||
RRP term (yrs.) |
(N) | 5 | Price per share | (P | ) | $ | 10.00 | |||||||||||||||
Tax rate |
(TAX) | 21.00 | % | |||||||||||||||||||
Investment rate of return, pretax |
2.85 | % | ||||||||||||||||||||
Investment rate of return, net |
(RR) | 2.25 | % |
Formulae to indicate value after conversion:
1. |
P/CE method: |
Value |
= |
P/CE*CY |
= | $ | 55,000,000 | |||||||||
((1-P/CE*(PCT)*((1-X-E-M)*(RR*(1-TAX))-((1-TAX)*E/T)-((1-TAX)*M/N)-((1-TAX)*OT)*(OP*OV)/OM))) |
||||||||||||||||
2. |
P/B method: |
Value |
= |
P/B*(B) |
= | $ | 55,000,000 | |||||||||
(1-PB*(PCT)*(1-X-E-M)) |
||||||||||||||||
3. |
P/A method: |
Value |
= |
P/A*(A) |
= | $ | 55,000,000 | |||||||||
(1-PA*(PCT)*(1-X-E-M)) |
VALUATION CORRELATION AND CONCLUSIONS:
Foundation Shares Issued |
Public Shares Sold |
Gross Proceeds of Public Offering |
MHC Shares Issued |
Total Shares Issued |
TOTAL VALUE |
|||||||||||||||||||
Midpoint |
55,000 | 2,420,000 | $ | 24,200,000 | 3,025,000 | 5,500,000 | $ | 55,000,000 | ||||||||||||||||
Minimum |
46,750 | 2,057,000 | $ | 20,570,000 | 2,571,250 | 4,675,000 | $ | 46,750,000 | ||||||||||||||||
Maximum |
63,250 | 2,783,000 | $ | 27,830,000 | 3,478,750 | 6,325,000 | $ | 63,250,000 | ||||||||||||||||
Maximum, as adjusted |
72,738 | 3,200,450 | $ | 32,004,500 | 4,000,563 | 7,273,750 | $ | 72,737,500 |
145
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 54 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the MINIMUM
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 20,570,000 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 19,070,000 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 19,070,000 | ||||||
Less: Stock-based benefit plans (2) |
2,748,900 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
Less: MHC capitalization |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 16,121,100 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 362,967 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
57,910 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
144,775 | |||||||
Less: Option expense, net of applicable taxes |
65,115 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 95,166 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Net | Core | |||||||
Before conversion -12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase (decrease) |
95,166 | 95,166 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,595,834 | ) | $ | 533,166 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
16,121,100 | 16,121,100 | ||||||
Tax benefit of foundation contribution |
119,175 | 119,175 | ||||||
|
|
|
|
|||||
After conversion |
$ | 53,930,275 | $ | 55,699,275 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
16,121,100 | |||||||
Tax benefit of foundation contribution |
119,175 | |||||||
|
|
|||||||
After conversion |
$ | 498,857,275 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
146
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 55 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the MIDPOINT
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 24,200,000 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 22,700,000 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 22,700,000 | ||||||
Less: Stock-based benefit plans (2) |
3,234,000 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
Less: MHC capitalization |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 19,266,000 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 433,774 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
68,130 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
170,324 | |||||||
Less: Option expense, net of applicable taxes |
76,605 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 118,715 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Regular | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase |
118,715 | 118,715 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,572,285 | ) | $ | 556,715 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
19,266,000 | 19,266,000 | ||||||
Tax benefit of foundation contribution |
136,500 | 136,500 | ||||||
|
|
|
|
|||||
After conversion |
$ | 57,092,500 | $ | 58,861,500 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
19,266,000 | |||||||
Tax benefit of foundation contribution |
136,500 | |||||||
|
|
|||||||
After conversion |
$ | 502,019,500 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
147
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 56 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the MAXIMUM
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 27,830,000 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 26,330,000 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 26,330,000 | ||||||
Less: Stock-based benefit plans (2) |
3,719,100 | |||||||
Less: Cash contribution to foundation |
100,000 | |||||||
Less: MHC capitalization |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 22,410,900 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 504,581 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
78,349 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
195,873 | |||||||
Less: Option expense, net of applicable taxes |
88,096 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 142,264 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Regular | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase |
142,264 | 142,264 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,548,736 | ) | $ | 580,264 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
22,410,900 | 22,410,900 | ||||||
Tax benefit of foundation contribution |
153,825 | 153,825 | ||||||
|
|
|
|
|||||
After conversion |
$ | 60,254,725 | $ | 62,023,725 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
22,410,900 | |||||||
Tax benefit of foundation contribution |
153,825 | |||||||
|
|
|||||||
After conversion |
$ | 505,181,725 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
148
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 57 |
PROJECTED EFFECT OF CONVERSION PROCEEDS
PYRAMAX BANK, F.S.B.
Minority Offering at the Maximum, as adjusted
1. Gross Offering Proceeds |
||||||||
Offering proceeds (1) |
$ | 32,004,500 | ||||||
Less: Estimated offering expenses |
1,500,000 | |||||||
|
|
|||||||
Net offering proceeds |
$ | 30,504,500 | ||||||
2. Generation of Additional Income |
||||||||
Net offering proceeds |
$ | 30,504,500 | ||||||
Less: Stock-based benefit plans (2) |
4,276,965 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
100,000 | |||||||
Less: Option expense, net of applicable taxes |
100,000 | |||||||
|
|
|||||||
Net offering proceeds invested |
$ | 26,027,535 | ||||||
Investment rate, after taxes |
2.25 | % | ||||||
Earnings increasereturn on proceeds invested |
$ | 586,010 | ||||||
Less: Estimated cost of ESOP borrowings |
0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes |
90,101 | |||||||
Less: Stock-based incentive plan expense, net of taxes |
225,253 | |||||||
Less: Option expense, net of applicable taxes |
101,311 | |||||||
|
|
|||||||
Net earnings increase (decrease) |
$ | 169,344 | ||||||
3. Comparative Pro Forma Earnings |
||||||||
Regular | Core | |||||||
Before conversion12 months ended 6/30/18 |
$ | (3,691,000 | ) | $ | 438,000 | |||
Net earnings increase |
169,344 | 169,344 | ||||||
|
|
|
|
|||||
After conversion |
$ | (3,521,656 | ) | $ | 607,344 | |||
4. Comparative Pro Forma Net Worth (3) |
||||||||
Total | Tangible | |||||||
Before conversion6/30/18 |
$ | 37,690,000 | $ | 39,459,000 | ||||
Net cash conversion proceeds |
26,027,535 | 26,027,535 | ||||||
Tax benefit of foundation contribution |
173,749 | 173,749 | ||||||
|
|
|
|
|||||
After conversion |
$ | 63,891,284 | $ | 65,660,284 | ||||
5. Comparative Pro Forma Assets |
||||||||
Before conversion6/30/18 |
$ | 482,617,000 | ||||||
Net cash conversion proceeds |
26,027,535 | |||||||
Tax benefit of foundation contribution |
173,749 | |||||||
|
|
|||||||
After conversion |
$ | 508,818,284 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth . |
149
KELLER & COMPANY Columbus, Ohio 614-766-1426 |
EXHIBIT 58 |
MINORITY OFFERING SUMMARY OF VALUATION PREMIUM OR DISCOUNT
PYRAMAX BANK, F.S.B.
Premium or (discount) from comparable group. |
||||||||||||
Pyramax Bank. F.S.B. | Average | Median | ||||||||||
Midpoint: |
||||||||||||
Price/earnings |
NM | x | NM | NM | ||||||||
Price/book value |
96.25 | % * | -11.41 | % | -12.64 | % | ||||||
Price/assets |
10.96 | % | -27.15 | % | -14.94 | % | ||||||
Price/tangible book value |
96.25 | % | -17.31 | % | -16.09 | % | ||||||
Price/core earnings |
NM | x | NM | NM | ||||||||
Minimum of range: |
||||||||||||
Price/earnings |
NM | x | NM | NM | ||||||||
Price/book value |
86.58 | % * | -20.31 | % | -21.42 | % | ||||||
Price/assets |
9.37 | % | -37.68 | % | -27.24 | % | ||||||
Price/tangible book value |
86.58 | % | -25.62 | % | -24.52 | % | ||||||
Price/core earnings |
NM | x | NM | NM | ||||||||
Maximum of range: |
||||||||||||
Price/earnings |
NM | x | NM | NM | ||||||||
Price/book value |
104.93 | % * | -3.42 | % | -4.77 | % | ||||||
Price/assets |
12.52 | % | -16.74 | % | -2.79 | % | ||||||
Price/tangible book value |
104.93 | % | -9.85 | % | -8.52 | % | ||||||
Price/core earnings |
NM | x | NM | NM | ||||||||
Super maximum of range: |
||||||||||||
Price/earnings |
NM | x | NM | NM | ||||||||
Price/book value |
113.77 | % * | 4.71 | % | 3.26 | % | ||||||
Price/assets |
14.30 | % | -4.94 | % | 10.99 | % | ||||||
Price/tangible book value |
113.77 | % | -2.26 | % | -0.81 | % | ||||||
Price/core earnings |
NM | x | NM | NM |
* | Represents pricing ratio associated with primary valuation method. |
150
ALPHABETICAL
EXHIBITS
EXHIBIT A
KELLER & COMPANY, INC.
Financial Institution Consultants
555 Metro Place North, Suite 524 Dublin, Ohio 43017 |
614-766-1426 (fax) 614-766-1459 |
PROFILE OF THE FIRM
KELLER & COMPANY, INC. is a national consulting firm to financial institutions, serving clients throughout the United States from its office in Dublin, Ohio. Since our inception in 1985, we have provided a wide range of consulting services to over 250 financial institutions including banks, thrifts, mortgage companies, insurance companies and holding companies from Oregon to Maine.
Services offered by Keller & Company include the preparation of stock and ESOP valuations, fairness opinions, business and strategic plans, capital plans, financial models and projections, market studies, de novo charter and deposit insurance applications, incentive compensation plans, compliance policies, lending, underwriting and investment criteria, and responses to regulatory comments. Keller & Company also serves as advisor in merger/acquisition, deregistration, going private, secondary offering and branch purchase/sale transactions. Keller & Company is additionally active in loan review, director and management review, product analysis and development, performance analysis, compensation review, policy development, charter conversion, data processing, information technology systems, and conference planning and facilitation.
Keller & Company is one of the leading firms in the U.S. with regard to the completion of ESOP valuations for financial institutions and prepares over 25 ESOP valuations a year. Keller is also one of the leading conversion appraisal firms in the United States.
Keller has on-line access to current and historical financial, organizational and demographic data for every financial institution and financial institution holding company in the United States as well as daily pricing data and ratios for all publicly traded financial institutions.
Keller & Company is an experienced appraiser of financial institutions for filing conversion appraisals with the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Federal Reserve Board and numerous state government agencies, and is also approved by the Internal Revenue Service as an expert in financial institution stock valuations.
Each of the firms senior consultants has over thirty years of front line experience and accomplishment in various areas of the financial institution, regulatory and real estate sectors, offering clients distinct and diverse areas of expertise. It is the goal of Keller & Company to provide specific and ongoing relationship-based services that are pertinent, focused and responsive to the needs of the individual client institution within the changing industry environment, and to offer those services at reasonable fees on a timely basis. In recent years, Keller & Company has become one of the leading and most recognized financial institution consulting firms in the nation.
152
CONSULTANTS IN THE FIRM
MICHAEL R. KELLER has over thirty years experience as a consultant to the financial institution industry. Immediately following his graduation from college, Mr. Keller took a position as an examiner of financial institutions in northeastern Ohio with a focus on Cleveland area institutions. After working two years as an examiner, Mr. Keller entered Ohio State University full time to obtain his M.B.A. in Finance.
Mr. Keller then worked as an associate for a management consulting firm specializing in services to financial institutions immediately after receiving his M.B.A. During his eight years with the firm, he specialized in mergers and acquisitions, branch acquisitions and sales, branch feasibility studies, stock valuations, charter applications, and site selection analyses. By the time of his departure, he had attained the position of vice president, with experience in almost all facets of banking operations.
Prior to forming Keller & Company, Mr. Keller also worked as a senior consultant in a larger consulting firm. In that position, he broadened his activities and experience, becoming more involved with institutional operations, business and strategic planning, regulatory policies and procedures, performance analysis, conversion appraisals, and fairness opinions. Mr. Keller established Keller & Company in November 1985 to better serve the needs of the financial institution industry.
Mr. Keller graduated from the College of Wooster with a B.A. in Economics in 1972, and later received an M.B.A. in Finance in 1976 from the Ohio State University where he took numerous courses in corporate stock valuations.
153
Consultants in the Firm (cont.)
SUSAN H. ODONNELL has twenty years of experience in the finance and accounting areas of the banking industry.
At the start of her career, Ms. ODonnell worked in public accounting for Coopers & Lybrand in Cincinnati and earned her CPA. Her clients consisted primarily of financial institutions and health care companies.
Ms. ODonnell then joined Empire Bank of America in Buffalo, New York. During her five years with Empire, Ms. ODonnell progressed to the level of Vice President and was responsible for SEC, FHLB and internal financial reporting. She also coordinated the offering circular for its initial offering of common stock.
Ms. ODonnell later joined Banc One Corporation where she worked for eleven years. She began her career at Banc One in the Corporate Accounting Department where she was responsible for SEC, Federal Reserve and investor relations reporting and coordinated the offering documents for stock and debt offerings. She also performed acquisition work including regulatory applications and due diligence and established accounting policies and procedures for all affiliates. Ms. ODonnell later moved within Banc One to the position of chief financial officer of the Personal Trust business responsible for $225 million in revenue. She then provided leadership as the Director of Personal Trust Integration responsible for various savings and revenue enhancements related to the Bank One/First Chicago merger.
Ms. ODonnell graduated from Miami University with a B.S. in Business. She also completed the Leading Strategic Change Program at The Darden School of Business and the Banc One Leadership Development Program.
154
Consultants in the Firm (cont.)
JOHN A. SHAFFER has over thirty years experience in banking, finance, real estate lending, and development.
Following his university studies, Mr. Shaffer served as a lending officer for a large real estate investment trust, specializing in construction and development loans. Having gained experience in loan underwriting, management and workout, he later joined Chemical Bank of New York and was appointed Vice President for Loan Administration of Chemical Mortgage Company in Columbus, Ohio. At Chemical, he managed all commercial and residential loan servicing, administering a portfolio in excess of $2 billion. His responsibilities also included the analysis, management and workout of problem commercial real estate loans and equity holdings, and the structuring, negotiation, acquisition and sale of loan servicing, mortgage and equity securities and real estate projects. Mr. Shaffer later formed and managed an independent real estate and financial consulting firm, serving corporate and institutional clients, and also investing in and developing real estate.
Mr. Shaffers primary activities and responsibilities have included financial analysis, projection and modeling, asset and liability management, real estate finance and development, loan management and workout, organizational and financial administration, budgeting, cash flow management and project design.
Mr. Shaffer graduated from Syracuse University with a B.S. in Business Administration, later receiving an M.B.A. in Finance and a Ph.D. in Economics from New York University.
155
EXHIBIT B
RB 20
CERTIFICATION
I hereby certify that I have not been the subject of any criminal, civil or administrative judgments, consents, undertakings or orders, or any past administrative proceedings (excluding routine or customary audits, inspections and investigation) issued by any federal or state court, any department, agency, or commission of the U.S. Government, any state or municipality, any self-regulatory trade or professional organization, or any foreign government or governmental entity, which involve:
(i) | commission of a felony, fraud, moral turpitude, dishonesty or breach of trust; |
(ii) | violation of securities or commodities laws or regulations; |
(iii) | violation of depository institution laws or regulations; |
(iv) | violation of housing authority laws or regulations; |
(v) | violation of the rules, regulations, codes or conduct or ethics of a self-regulatory trade or professional organization; |
(vi) | adjudication of bankruptcy or insolvency or appointment of a receiver, conservator, trustee, referee, or guardian. |
I hereby certify that the statements I have made herein are true, complete and correct to the best of my knowledge and belief.
Conversion Appraiser | ||||
8/13/2018 | ||||
Date | Michael R. Keller |
156
EXHIBIT C
AFFIDAVIT OF INDEPENDENCE
STATE OF OHIO,
COUNTY OF FRANKLIN, ss:
I, Michael R. Keller, being first duly sworn hereby depose and say that:
The fee which I received directly from the applicant, PyraMax Bank, FSB, in the amount of $39,000 for the performance of my appraisal was not related to the value determined in the appraisal and that the undersigned appraiser is independent and has fully disclosed any relationships which may have a material bearing upon the question of my independence; and that any indemnity agreement with the applicant has been fully disclosed.
Further, affiant sayeth naught.
MICHAEL R. KELLER |
Sworn to before me and subscribed in my presence this 14th day of August 2018.
NOTARY PUBLIC |
157