Attached files
file | filename |
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EX-23.3 - EXHIBIT 23.3 - Catalyst Bancorp, Inc. | tm2114322d2_ex23-3.htm |
EX-8.2 - EXHIBIT 8.2 - Catalyst Bancorp, Inc. | tm2114322d2_ex8-2.htm |
EX-8.1 - EXHIBIT 8.1 - Catalyst Bancorp, Inc. | tm2114322d2_ex8-1.htm |
EX-2.1 - EXHIBIT 2.1 - Catalyst Bancorp, Inc. | tm2114323d2_ex2-1.htm |
S-1/A - S-1/A - Catalyst Bancorp, Inc. | tm2114322-1_s1a.htm |
Exhibit 99.7
May 14, 2021
Board of Directors
Catalyst Bancorp, Inc.
St. Landry Homestead Federal Savings Bank
235 North Court Street
Opelousas, Louisiana 70570
Members of the Board of Directors:
We have completed and hereby provide an updated appraisal of the estimated pro forma market value of the common stock which is to be issued in connection with the mutual-to-stock conversion described below.
This updated appraisal is furnished pursuant to the requirements stipulated in the Code of Federal Regulations and has been prepared in accordance with the “Guidelines for Appraisal Reports for the Valuation of Savings and Loan Associations Converting from Mutual to Stock Form of Organization” (the “Valuation Guidelines”) of the Office of Thrift Supervision (“OTS”) and accepted by the Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve Board (“FRB”), and applicable regulatory interpretations thereof. Our original appraisal report, dated February 5, 2021 (the "Original Appraisal"), is incorporated herein by reference. As in the preparation of our Original Appraisal, we believe the data and information used herein is reliable; however, we cannot guarantee the accuracy and completeness of such information.
The Board of Directors of St. Landry Homestead Federal Savings Bank, Opelousas, Louisiana (“St. Landry Homestead” or the “Bank”) adopted the plan of conversion on January 27, 2021, incorporated herein by reference. Pursuant to the plan of conversion, the Bank will convert from a federally-chartered mutual savings bank to a federally-chartered stock savings bank and become a wholly-owned subsidiary of Catalyst Bancorp, Inc. (“Catalyst Bancorp” or the “Company”), a Louisiana corporation organized by St. Landry Homestead. Catalyst Bancorp will offer 100% of its common stock to qualifying depositors of the Bank in a subscription offering to Eligible Account Holders, Tax-Qualified Plans consisting of St. Landry Homestead’s employee stock ownership plan (the “ESOP”), Supplemental Eligible Account Holders and Other Members, as such terms are defined for purposes of applicable federal regulatory guidelines governing mutual-to-stock conversions. To the extent that shares remain available for purchase after satisfaction of all subscriptions received in the subscription offering, the shares may be offered for sale to the public at large in a community offering and a syndicated or firm commitment offering. Going forward, Catalyst Bancorp will own 100% of the Bank's stock, and the Bank will initially be Catalyst Bancorp’s sole subsidiary. A portion of the net proceeds received from the sale of common stock will be used to purchase all of the then to be issued and outstanding capital stock of the Bank and the balance of the net proceeds will be retained by the Company.
At this time, no other activities are contemplated for the Company other than the ownership of the Bank, a loan to the newly-formed ESOP and reinvestment of the proceeds that are retained by the Company. In the future, Catalyst Bancorp may acquire or organize other operating subsidiaries, diversify into other banking-related activities, pay dividends or repurchase its stock, although there are no specific plans to undertake such activities at the present time.
Washington Headquarters | |
1311-A Dolley Madison Boulevard | Telephone: (703) 528-1700 |
Suite 2A | Fax No.: (703) 528-1788 |
McLean, VA 22101 | Toll-Free No.: (866) 723-0594 |
www.rpfinancial.com | E-Mail: mail@rpfinancial.com |
Board of Directors
May 14, 2021
Page 2
The estimated pro forma market value is defined as the price at which Catalyst Bancorp’s common stock, immediately upon completion of the public stock offering, would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.
Our valuation is not intended, and must not be construed, as a recommendation of any kind as to the advisability of purchasing shares of the common stock. Moreover, because such valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of common stock in the conversion will thereafter be able to buy or sell such shares at prices related to the foregoing valuation of the pro forma market value thereof. RP Financial is not a seller of securities within the meaning of any federal and state securities laws and any report prepared by RP Financial shall not be used as an offer or solicitation with respect to the purchase or sale of any securities. RP Financial maintains a policy which prohibits the company, its principals or employees from purchasing stock of its client institutions.
This updated appraisal reflects the following noteworthy items: (1) a review of recent developments in St. Landry Homestead’s financial condition, including financial data through March 31, 2021; (2) an updated comparison of St. Landry Homestead’s financial condition and operating results versus the Peer Group companies identified in the Original Appraisal; and (3) a review of stock market conditions since the date of the Original Appraisal.
Discussion of Relevant Considerations
1. Financial Results
Table 1 presents summary balance sheet and income statement details for the twelve months ended December 31, 2020 and updated financial information through March 31, 2021. St. Landry Homestead’s assets increased by $12.1 million or 5.36% from December 31, 2020 to March 31, 2021. Increases in cash and investments were the primary drivers of asset growth during the first quarter of 2021, which were partially offset by a decrease in loans. Overall, cash and investments (inclusive of FHLB stock) increased from $64.9 million or 28.88% of assets at December 31, 2020 to $82.5 million or 34.84% of assets at March 31, 2021. Net loans receivable decreased from $148.8 million or 66.22% of assets at December 31, 2020 to $142.9 million or 60.37% of assets at March 31, 2021. The balance of bank-owned life insurance increased by $22,000 during the quarter ended March 31, 2021 to equal $3.2 million or 1.37% of assets at March 31, 2021.
Updated credit quality measures for the Bank showed a slight increase in non-performing assets during the quarter ended March 31, 2021, as St. Landry Homestead’s non-performing assets increased from $2.1 million or 0.93% of assets at December 31, 2020 to $2.2 million or 0.94% of assets at March 31, 2021. Increases in non-accruing loans and real estate owned accounted for the increase in the non-performing assets balance, which was partially offset by a slight decrease in the balance of accruing loans 90 days or more past due.
Board of Directors
May 14, 2021
Page 3
Table 1
St. Landry Homestead Federal Savings Bank
Recent Financial Data
At December 31, 2020 | At March 31, 2021 | |||||||||||||||
Amount | Assets | Amount | Assets | |||||||||||||
($000) | (%) | ($000) | (%) | |||||||||||||
Balance Sheet Data | ||||||||||||||||
Total assets | $ | 224,688 | 100.00 | % | $ | 236,742 | 100.00 | % | ||||||||
Cash, cash equivalents | 25,245 | 11.24 | 37,071 | 15.66 | ||||||||||||
Investment securities | 38,253 | 17.02 | 44,010 | 18.59 | ||||||||||||
Loans receivable, net | 148,778 | 66.22 | 142,929 | 60.37 | ||||||||||||
FHLB stock | 1,394 | 0.62 | 1,397 | 0.59 | ||||||||||||
Bank-owned life insurance | 3,213 | 1.43 | 3,235 | 1.37 | ||||||||||||
Deposits | 164,598 | 73.26 | 176,669 | 74.63 | ||||||||||||
Borrowings | 8,838 | 3.93 | 8,883 | 3.75 | ||||||||||||
Total equity | 50,533 | 22.49 | 50,357 | 21.27 |
12 Months Ended | 12 Months Ended | |||||||||||||||
December 31, 2020 | March 31, 2021 | |||||||||||||||
Amount | Avg. Assets | Amount | Avg. Assets | |||||||||||||
($000) | (%) | ($000) | (%) | |||||||||||||
Summary Income Statement | ||||||||||||||||
Interest income | $ | 8,490 | 3.65 | % | $ | 8,219 | 3.50 | % | ||||||||
Interest expense | (1,705 | ) | (0.73 | ) | (1,470 | ) | (0.63 | ) | ||||||||
Net interest income | 6,785 | 2.92 | 6,749 | 2.87 | ||||||||||||
Provisions for loan losses | (985 | ) | (0.42 | ) | (920 | ) | (0.39 | ) | ||||||||
Net interest income after prov. | 5,800 | 2.49 | 5,829 | 2.48 | ||||||||||||
Non-interest operating income | 966 | 0.41 | 999 | 0.43 | ||||||||||||
Loss and expense - foreclosed real estate | (287 | ) | (0.12 | ) | (256 | ) | (0.11 | ) | ||||||||
Prepayment penalty on FHLB advances | (1,510 | ) | (0.65 | ) | (1,510 | ) | (0.64 | ) | ||||||||
Non-interest operating expense | (6,146 | ) | (2.64 | ) | (6,263 | ) | (2.67 | ) | ||||||||
Income before income tax expense | (1,177 | ) | (0.51 | ) | (1,201 | ) | (0.51 | ) | ||||||||
Income tax benefit | 474 | 0.20 | 494 | 0.21 | ||||||||||||
Net income (loss) | $ | (703 | ) | (0.30 | )% | $ | (707 | ) | (0.30 | )% |
Sources: | St. Landry Homestead’s prospectus, audited and unaudited financial statements, and RP Financial calculations. |
Board of Directors
May 14, 2021
Page 4
The Bank’s funding composition showed asset growth was primarily funded by deposit growth, while borrowings were up nominally during the quarter ended March 31, 2021. Deposits increased from $164.6 million or 73.26% of assets at December 31, 2020 to $176.7 million or 74.63% of assets at March 31, 2021. Deposit growth during the first quarter was largely generated through SBA PPP loan proceeds and government stimulus payments received by the Bank’s customers. FHLB advances increased by $45,000 during the quarter ended March 31, 2021 to equal $8.9 million or 3.75% of assets at March 31, 2021. The $45,000 increase in the carrying value of FHLB advances reflects the amortization of prepayment penalties on $10.0 million in advances taken during the fourth quarter of 2020. St. Landry Homestead’s equity decreased from $50.5 million to $50.4 million during the quarter ended March 31, 2021, which combined with asset growth provided for a decrease in the Bank’s equity-to-assets ratio from 22.49% at December 31, 2020 to 21.27% at March 31, 2021. The decrease in equity was due to a $327,000 reduction in accumulated unrealized gains/losses on available for sale securities, which was partially offset by $151,000 of net income reported for the first quarter of 2021.
St. Landry Homestead’s operating results for the twelve months ended December 31, 2020 and March 31, 2021 are also set forth in Table 1. The Bank’s reported earnings decreased from a net loss of $703,000 or 0.30% of average assets for the twelve months ended December 31, 2020 to a net loss of $707,000 or 0.30% of average assets for the twelve months ended March 31, 2021. The slightly higher net loss reported during the most recent twelve month period was due to a decrease in net interest income and an increase in operating expenses, which were substantially offset by decreases in loan loss provisions and foreclosed real estate expenses, and increases in non-interest operating income and income tax benefit. Earnings for both twelve month periods were negatively impacted by the $1.5 million prepayment penalty on FHLB advances.
St. Landry Homestead’s net interest income was down slightly during the most recent twelve month period, which was due to a more significant decrease in interest income relative to interest expense. The decrease in interest income was primarily due to a decrease in interest income on loans receivable, as the result of a reduction in the average balance of loans outstanding and a decrease in the average yield on loans. The decrease in interest expense was primarily due to a reduction in interest expense on FHLB advances, as the result of the prepayment of FHLB advances during the fourth quarter of 2020 which reduced the average balance of FHLB advances outstanding during the three months ended March 31, 2021. A decline in the average rate paid on deposits also contributed to the decrease in interest expense, which was partially offset by an increase in the average balance of deposits outstanding. Overall, the Bank’s net interest spread decreased to 3.04% for the first quarter of 2021 compared to 3.06% for the first quarter of 2020 and net interest income decreased from $6.8 million or 2.92% of average assets during the twelve months ended December 31, 2020 to $6.7 million or 2.87% of average assets during the twelve months ended March 31, 2021.
Operating expenses increased from $6.1 million or 2.64% of average assets during the twelve months ended December 31, 2020 to $6.3 million or 2.67% of average assets during the twelve months ended March 31, 2021. The increase was primarily due to an $80,000 increase in salaries and employee benefit expense, due in part to new employee hires, a $38,000 increase in occupancy and equipment expense, consisting primarily of expense related to the additional branch office that was opened in 2020, and a $24,000 increase in computer services expense, which was primarily due to systems upgrades. Partially offsetting the increase in operating expenses was a $25,000 reduction in advertising and marketing expense in the quarter ended March 31, 2021 compared to the year ago quarter. Overall, St. Landry Homestead’s updated ratios for net interest income and operating expenses provided for a slightly less favorable expense coverage ratio (net interest income divided by operating expenses). St. Landry Homestead’s expense coverage ratio decreased from 1.11x for the twelve months ended December 31, 2020 to 1.07x for the twelve months ended March 31, 2021.
Board of Directors
May 14, 2021
Page 5
Non-interest operating income increased from $966,000 or 0.41% of average assets during the twelve months ended December 31, 2020 to $999,000 or 0.43% of average assets during the twelve months ended March 31, 2021. The increase was primarily due to a $71,000 increase in other non-interest income, primarily related to an increase in SBA fee income, partially offset by a $37,000 decrease in service charges on deposit accounts in the quarter ended March 31, 2021 compared to the year ago quarter. Overall, when factoring non-interest operating income into core earnings, the Bank’s updated efficiency ratio of 80.91% (operating expenses as a percent of net interest income and non-interest operating income) was slightly less favorable compared to the 79.28% efficiency ratio recorded for the twelve months ended December 31, 2020.
Loan loss provisions were slightly lower during the most recent twelve month period, decreasing from $985,000 or 0.42% of average assets during the twelve months ended December 31, 2020 to $920,000 or 0.39% of average assets during the twelve months ended March 31, 2021. The Bank maintained allowances for loan losses of $3.0 million at March 31, 2021, equal to 2.03% of total loans and 174.85% of non-performing loans.
The Company’s updated earnings showed a decrease in net non-operating losses during the most recent twelve month period, which was due to a decrease in foreclosed real estate expense. For the twelve months ended March 31, 2021, non-operating losses consisted of $256,000 of foreclosed real estate expenses and a $1.5 million prepayment penalty on FHLB advances. Overall, the net non-operating loss decreased from $1.797 million or 0.77% of average assets during the twelve months ended December 31, 2020 to $1.766 million or 0.75% of average assets during the twelve months ended March 31, 2021.
Primarily due to an increase in the pre-tax loss, the Bank’s income tax benefit increased from $474,000 or 0.20% of average assets during the twelve months ended December 31, 2020 to $494,000 or 0.21% of average assets during the twelve months ended March 31, 2021.
2. Peer Group Financial Comparisons
Tables 2 and 3 present the financial characteristics and operating results for St. Landry Homestead, the Peer Group and all publicly-traded thrifts. The Bank’s and the Peer Group’s ratios are based on financial results through March 31, 2021.
In general, the comparative balance sheet ratios for the Bank and the Peer Group did not vary significantly from the ratios exhibited in the Original Appraisal. Consistent with the Original Appraisal, the Bank’s updated interest-earning asset composition reflected a slightly lower concentration of loans and a slightly higher concentration of cash and investments. Overall, the Bank’s and the Peer Group’s updated interest-earning assets-to-assets ratios equaled 95.21% and 95.42%, respectively.
Board of Directors
May 14, 2021
Page 6
Table 2
Balance Sheet Composition and Growth Rates
Comparable Institution Analysis
As of March 31, 2021
Balance Sheet as a Percent of Assets | Balance Sheet Annual Growth Rates | Regulatory Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash & | MBS & | Net | Borrowed | Sub. | Total | Goodwill | Tangible | MBS, Cash | Borrows. | Total | Tangible | Tier 1 | Tier 1 | Risk-Based | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equival. | Invest | BOLI | Loans (1) | Deposits | Funds | Debt | Equity | & Intang | Equity | Assets | Invests | Loans | Deposits | &Subdebt | Equity | Equity | Leverage | Risk-Based | Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Landry Homestead FSB | LA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | 15.66 | % | 19.18 | % | 1.37 | % | 60.37 | % | 74.63 | % | 3.75 | % | 0.00 | % | 21.27 | % | 0.00 | % | 21.27 | % | 6.59 | % | 55.37 | % | -9.41 | % | 19.07 | % | -58.39 | % | -1.19 | % | -1.19 | % | 22.01 | % | 41.09 | % | 42.36 | % | ||||||||||||||||||||||||||||||||||||||||||
All Non-MHC Public Thrifts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 11.19 | % | 13.99 | % | 1.60 | % | 69.00 | % | 77.39 | % | 8.03 | % | 0.44 | % | 12.83 | % | 0.86 | % | 11.52 | % | 16.05 | % | 66.99 | % | 7.41 | % | 23.36 | % | -18.04 | % | 12.59 | % | 15.03 | % | 11.24 | % | 16.05 | % | 17.58 | % | ||||||||||||||||||||||||||||||||||||||||||
Medians | 9.13 | % | 11.59 | % | 1.76 | % | 69.78 | % | 79.26 | % | 5.10 | % | 0.00 | % | 11.61 | % | 0.23 | % | 10.57 | % | 12.77 | % | 57.25 | % | 6.45 | % | 22.92 | % | -18.23 | % | 4.59 | % | 5.06 | % | 10.67 | % | 13.47 | % | 16.16 | % | ||||||||||||||||||||||||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 13.22 | % | 19.39 | % | 1.66 | % | 62.81 | % | 74.77 | % | 9.20 | % | 0.00 | % | 15.00 | % | 0.20 | % | 14.80 | % | 15.19 | % | 77.40 | % | 3.67 | % | 22.15 | % | -7.38 | % | 7.54 | % | 7.56 | % | 13.43 | % | 20.39 | % | 21.38 | % | ||||||||||||||||||||||||||||||||||||||||||
Medians | 12.95 | % | 10.26 | % | 1.59 | % | 66.01 | % | 76.18 | % | 4.64 | % | 0.00 | % | 12.96 | % | 0.00 | % | 12.96 | % | 11.01 | % | 58.21 | % | -0.30 | % | 15.82 | % | -6.43 | % | 5.06 | % | 5.06 | % | 12.15 | % | 16.84 | % | 17.16 | % | ||||||||||||||||||||||||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CBMB | CBM Bancorp, Inc. | MD | 24.33 | % | 8.02 | % | 2.02 | % | 63.75 | % | 76.30 | % | 2.08 | % | 0.00 | % | 20.80 | % | 0.00 | % | 20.80 | % | 4.96 | % | 42.58 | % | -7.30 | % | 15.86 | % | -60.00 | % | -10.95 | % | -10.95 | % | 18.62 | % | 28.80 | % | 29.95 | % | ||||||||||||||||||||||||||||||||||||||||
CNNB | Cincinnati Bancorp, Inc. | OH | 12.06 | % | 5.30 | % | 1.74 | % | 76.66 | % | 64.56 | % | 15.96 | % | 0.00 | % | 17.78 | % | 0.07 | % | 17.71 | % | 5.76 | % | 58.42 | % | -2.61 | % | 8.79 | % | -12.05 | % | 12.90 | % | 13.03 | % | 15.15 | % | 21.00 | % | 21.97 | % | ||||||||||||||||||||||||||||||||||||||||
ESBK | Elmira Savings Bank | NY | 13.84 | % | 3.38 | % | 2.39 | % | 75.00 | % | 84.86 | % | 4.76 | % | 0.00 | % | 9.43 | % | 1.91 | % | 7.52 | % | 6.22 | % | 172.06 | % | -6.25 | % | 6.80 | % | -0.82 | % | 3.67 | % | 3.67 | % | 8.11 | % | 13.11 | % | 14.37 | % | ||||||||||||||||||||||||||||||||||||||||
FFBW | FFBW, Inc. | WI | 17.51 | % | 17.10 | % | 2.54 | % | 60.54 | % | 67.97 | % | 2.22 | % | 0.00 | % | 29.33 | % | 0.00 | % | 29.33 | % | 21.50 | % | 65.30 | % | 5.69 | % | 40.51 | % | -34.78 | % | -1.91 | % | -1.91 | % | 22.27 | % | 33.91 | % | 35.16 | % | ||||||||||||||||||||||||||||||||||||||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | 17.93 | % | 12.49 | % | 1.28 | % | 64.72 | % | 89.73 | % | 0.60 | % | 0.00 | % | 9.26 | % | 0.00 | % | 9.26 | % | 22.32 | % | 58.00 | % | 10.75 | % | 24.46 | % | 14.24 | % | 5.01 | % | 5.01 | % | NA | NA | NA | |||||||||||||||||||||||||||||||||||||||||||
HVBC | HV Bancorp, Inc. | PA | 23.19 | % | 5.06 | % | 1.08 | % | 67.30 | % | 80.10 | % | 11.96 | % | 0.00 | % | 6.69 | % | 0.00 | % | 6.69 | % | 67.53 | % | 266.12 | % | 38.21 | % | 71.54 | % | 85.99 | % | 17.86 | % | 17.86 | % | 5.81 | % | 13.36 | % | 14.08 | % | ||||||||||||||||||||||||||||||||||||||||
IROQ | IF Bancorp, Inc. | IL | 4.80 | % | 24.14 | % | 1.24 | % | 67.67 | % | 82.80 | % | 4.52 | % | 0.00 | % | 11.20 | % | 0.00 | % | 11.20 | % | 8.95 | % | 30.55 | % | 2.01 | % | 15.78 | % | -45.56 | % | 5.10 | % | 5.10 | % | 11.24 | % | NA | NA | ||||||||||||||||||||||||||||||||||||||||||
MSVB | Mid-Southern Bancorp, Inc. | IN | 9.71 | % | 41.61 | % | 1.59 | % | 45.73 | % | 76.07 | % | 4.08 | % | 0.00 | % | 19.55 | % | 0.00 | % | 19.55 | % | 17.55 | % | 59.89 | % | -8.39 | % | 25.73 | % | 0.00 | % | -3.29 | % | -3.29 | % | 16.76 | % | NA | NA | ||||||||||||||||||||||||||||||||||||||||||
RNDB | Randolph Bancorp, Inc. | MA | 7.44 | % | 7.82 | % | 1.17 | % | 79.27 | % | 75.90 | % | 8.13 | % | 0.00 | % | 13.66 | % | 0.00 | % | 13.66 | % | 13.07 | % | 40.71 | % | 9.37 | % | 10.94 | % | 15.40 | % | 27.74 | % | 27.77 | % | 12.15 | % | 15.69 | % | 16.94 | % | ||||||||||||||||||||||||||||||||||||||||
WVFC | WVS Financial Corp. | PA | 1.38 | % | 68.96 | % | 1.59 | % | 27.46 | % | 49.39 | % | 37.64 | % | 0.00 | % | 12.25 | % | 0.00 | % | 12.25 | % | -15.99 | % | -19.63 | % | -4.80 | % | 1.15 | % | -36.27 | % | 19.32 | % | 19.32 | % | 10.76 | % | 16.84 | % | 17.16 | % |
(1) Includes loans held for sale.
Source: S&P Global Market Intelligence and RP® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Copyright (c) 2021 by RP® Financial, LC.
Board of Directors
May 14, 2021
Page 7
Table 3
Income as Percent of Average Assets and Yields, Costs, Spreads
Comparable Institution Analysis
For the 12 Months Ended March 31, 2021 or the Most Recent 12 Months Available
Net Interest Income | Non-Interest Income | NonOp Items | Yields, Costs, and Spreads | |||||||||||||||||||||||||||||||||||||||||||||||||
Loss | NII | Gain | Other | Total | Provision | MEMO: | MEMO: | |||||||||||||||||||||||||||||||||||||||||||||
Net | Provis. | After | on Sale of | Non-Int | Non-Int | Net Gains/ | Extrao. | for | Yield | Cost | Yld-Cost | Assets/ | Effective | |||||||||||||||||||||||||||||||||||||||
Income | Income | Expense | NII | on IEA | Provis. | Loans | Income | Expense | Losses (1) | Items | Taxes | On IEA | Of IBL | Spread | FTE Emp. | Tax Rate | ||||||||||||||||||||||||||||||||||||
(%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ($000) | (%) | ||||||||||||||||||||||||||||||||||||
St. Landry Homestead FSB | LA | |||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | -0.30 | % | 3.50 | % | 0.63 | % | 2.87 | % | 0.39 | % | 2.48 | % | 0.00 | % | 0.43 | % | 2.67 | % | -0.75 | % | 0.00 | % | -0.21 | % | 3.75 | % | 0.94 | % | 2.81 | % | $ 4,384 | -41.13 | % | |||||||||||||||||||
All Non-MHC Public Thrifts | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 1.04 | % | 3.51 | % | 0.61 | % | 2.90 | % | 0.18 | % | 2.70 | % | 1.05 | % | 0.40 | % | 2.70 | % | 0.04 | % | 0.00 | % | 0.31 | % | 3.73 | % | 0.93 | % | 2.81 | % | $ 8,743 | 22.33 | % | |||||||||||||||||||
Medians | 0.83 | % | 3.42 | % | 0.55 | % | 2.79 | % | 0.15 | % | 2.65 | % | 0.11 | % | 0.39 | % | 2.45 | % | 0.00 | % | 0.00 | % | 0.25 | % | 3.66 | % | 0.94 | % | 2.72 | % | $ 7,335 | 22.84 | % | |||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | 1.11 | % | 3.27 | % | 0.62 | % | 2.65 | % | 0.15 | % | 2.51 | % | 1.88 | % | 0.36 | % | 3.31 | % | 0.01 | % | 0.00 | % | 0.33 | % | 3.51 | % | 1.03 | % | 2.48 | % | $ 6,427 | 22.35 | % | |||||||||||||||||||
Medians | 0.73 | % | 3.38 | % | 0.57 | % | 2.73 | % | 0.12 | % | 2.61 | % | 0.62 | % | 0.38 | % | 2.74 | % | 0.01 | % | 0.00 | % | 0.23 | % | 3.55 | % | 1.05 | % | 2.59 | % | $ 6,206 | 22.77 | % | |||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CBMB | CBM Bancorp, Inc. | MD | 0.38 | % | 3.59 | % | 0.60 | % | 2.99 | % | 0.07 | % | 2.91 | % | 0.54 | % | 0.15 | % | 3.09 | % | 0.04 | % | 0.00 | % | 0.17 | % | 3.76 | % | 1.14 | % | 2.62 | % | $ 5,867 | 31.46 | % | |||||||||||||||||
CNNB | Cincinnati Bancorp, Inc. | OH | 2.01 | % | 3.34 | % | 1.00 | % | 2.34 | % | 0.09 | % | 2.25 | % | 5.09 | % | 0.74 | % | 5.55 | % | 0.00 | % | 0.00 | % | 0.53 | % | 3.57 | % | 1.40 | % | 2.17 | % | $ 3,205 | 20.89 | % | |||||||||||||||||
ESBK | Elmira Savings Bank | NY | 0.64 | % | 3.47 | % | 0.91 | % | 2.56 | % | 0.22 | % | 2.34 | % | 0.71 | % | 0.41 | % | 2.64 | % | 0.00 | % | 0.00 | % | 0.17 | % | 4.13 | % | 1.07 | % | 3.06 | % | $ 5,786 | 20.79 | % | |||||||||||||||||
FFBW | FFBW, Inc. | WI | 0.66 | % | 3.76 | % | 0.44 | % | 3.32 | % | 0.16 | % | 3.16 | % | 0.20 | % | 0.23 | % | 2.69 | % | 0.00 | % | 0.00 | % | 0.20 | % | 4.07 | % | 1.02 | % | 3.05 | % | $ 7,873 | 23.25 | % | |||||||||||||||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | 0.97 | % | 3.94 | % | 0.71 | % | 3.23 | % | 0.42 | % | 2.81 | % | 0.82 | % | 0.21 | % | 2.60 | % | 0.00 | % | 0.00 | % | 0.26 | % | 4.16 | % | 1.20 | % | 2.96 | % | $ 9,085 | 21.22 | % | |||||||||||||||||
HVBC | HV Bancorp, Inc. | PA | 1.26 | % | 2.66 | % | 0.50 | % | 2.16 | % | 0.21 | % | 1.95 | % | 3.03 | % | 0.39 | % | 3.65 | % | 0.03 | % | 0.00 | % | 0.48 | % | 2.98 | % | 0.94 | % | 2.04 | % | $ 6,834 | 27.64 | % | |||||||||||||||||
IROQ | IF Bancorp, Inc. | IL | 0.79 | % | 3.42 | % | 0.70 | % | 2.72 | % | 0.01 | % | 2.71 | % | 0.23 | % | 0.57 | % | 2.47 | % | 0.06 | % | 0.00 | % | 0.31 | % | 3.53 | % | 1.12 | % | 2.41 | % | $ 6,545 | 27.93 | % | |||||||||||||||||
MSVB | Mid-Southern Bancorp, Inc. | IN | 0.53 | % | 3.29 | % | 0.38 | % | 2.91 | % | 0.03 | % | 2.88 | % | 0.00 | % | 0.38 | % | 2.78 | % | 0.05 | % | 0.00 | % | 0.00 | % | 3.46 | % | 0.72 | % | 2.74 | % | $ 5,005 | 0.00 | % | |||||||||||||||||
RNDB | Randolph Bancorp, Inc. | MA | 3.49 | % | 3.27 | % | 0.53 | % | 2.74 | % | 0.23 | % | 2.52 | % | 8.16 | % | 0.46 | % | 6.57 | % | -0.07 | % | 0.00 | % | 1.00 | % | 3.48 | % | 0.92 | % | 2.56 | % | $ 3,615 | 22.29 | % | |||||||||||||||||
WVFC | WVS Financial Corp. | PA | 0.41 | % | 1.93 | % | 0.38 | % | 1.55 | % | 0.02 | % | 1.53 | % | 0.00 | % | 0.11 | % | 1.08 | % | 0.01 | % | 0.00 | % | 0.16 | % | 1.97 | % | 0.73 | % | 1.24 | % | $ 10,458 | 27.98 | % |
(1) Net gains/losses includes gain/loss on sale of securities and nonrecurring income and expense.
Source: S&P Global Market Intelligence and RP® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Copyright (c) 2021 by RP® Financial, LC.
Board of Directors
May 14, 2021
Page 8
St. Landry Homestead’s updated funding composition showed a similar concentration of deposits and a lower concentration of borrowings relative to the comparable Peer Group measures. Updated interest-bearing liabilities-to-assets ratios equaled 78.38% and 83.97% for the Bank and the Peer Group, respectively. St. Landry Homestead’s updated tangible equity-to-assets ratio equaled 21.27%, which remained above the comparable Peer Group ratio of 14.80%. Overall, St. Landry Homestead’s updated interest-earning assets-to-interest-bearing liabilities ("IEA/IBL") ratio equaled 121.47%, which remained above the comparable Peer Group ratio of 113.64%. As discussed in the Original Appraisal, the additional capital realized from stock proceeds should serve to increase St. Landry Homestead’s IEA/IBL ratio, as the level of interest-bearing liabilities funding assets will be lower due to the increase in capital realized from the offering and the net proceeds realized from the offering will be primarily deployed into interest-earning assets.
Updated growth rates for St. Landry Homestead are based on annualized growth rates for the 15 months ended March 31, 2021 and the Peer Group’s growth rates are based on growth for the twelve months ended March 31, 2021. St. Landry Homestead recorded a 6.59% increase in assets, versus a 15.19% increase in assets for the Peer Group. Asset growth by the Bank largely consisted of a 55.37% increase in cash and investments, which was partially offset by a 9.41% decline in loans. Comparatively, the Peer Group’s asset growth was realized through a 3.67% increase in loans and a 77.40% increase in cash and investments.
The Bank’s asset growth was primarily funded by a 19.07% increase in deposits, which also funded a 58.39% reduction in borrowings. Similarly, deposit growth of 22.15% funded the Peer Group’s asset growth, as well as a 7.38% reduction in borrowings. Updated tangible net worth growth rates for the Bank and the Peer Group showed respective decreases and increases of 1.19% and 7.56%.
Table 3 displays comparative operating results for St. Landry Homestead and the Peer Group, based on their respective earnings for the twelve months ended March 31, 2021. St. Landry Homestead reported a net loss equal 0.30% of average assets, while the Peer Group reported net income equal to 1.11% of average assets. The Peer Group’s higher return was realized through higher ratios for non-interest operating income and non-operating gains and a lower ratio for loan loss provisions, while the Bank maintained earnings advantages with respect to a higher ratio for net interest income and a lower ratio for operating expenses.
In terms of core earnings strength, updated expense coverage ratios posted by St. Landry Homestead and the Peer Group equaled 1.07x and 0.80x, respectively. The Bank’s higher expense coverage continued to be supported by both a higher net interest income ratio and a lower operating expense ratio.
Non-interest operating income remained a larger contributor to the Peer Group’s earnings, as such income amounted to 0.43% and 2.24% of the Bank’s and the Peer Group’s average assets, respectively. Accordingly, taking non-interest operating income into account in assessing St. Landry Homestead’s core earnings strength relative to the Peer Group's, the Bank’s updated efficiency ratio of 80.91% remained less favorable than the Peer Group’s efficiency ratio of 67.69%.
Board of Directors
May 14, 2021
Page 9
Consistent with the Original Appraisal, loan loss provisions were a larger factor in the Bank’s updated earnings, with loan loss provisions established by the Bank and the Peer Group equaling 0.39% and 0.15% of average assets, respectively.
Consistent with the Original Appraisal, non-operating income and losses remained a more significant factor in the Bank’s updated earnings. The Bank reported a net non-operating loss equal to 0.75% of average assets, versus non-operating income equal to 0.01% of average assets for the Peer Group. As set forth in the Original Appraisal, typically, such gains and losses are discounted in valuation analyses as they tend to have a relatively high degree of volatility, and, thus, are not considered to be part of core operations. Extraordinary items remained a non-factor in the Bank’s and the Peer Group's updated earnings.
Updated effective tax rates equaled a tax benefit of 41.13% for the Bank and a tax expense of 22.35% for the Peer Group.
The Bank’s updated credit quality measures continued to imply a greater degree of credit risk exposure relative to the comparable Peer Group measures. As shown in Table 4, the Bank’s non-performing assets/assets and non-performing loans/loans ratios of 2.33% and 3.42%, respectively, were higher than the comparable Peer Group ratios of 0.59% and 0.81%. The Bank’s updated reserve coverage ratios continued to indicate a lower level of reserves as a percent of non-performing loans (59.38% versus 184.51% for the Peer Group) and a higher level of reserves as a percent of loans (2.03% versus 1.05% for the Peer Group). Net loan charge-offs were a similar factor for the Bank and the Peer Group, with net loan charge-offs as a percent of loans equal to 0.06% and 0.05% for the Bank and the Peer Group, respectively.
3. Stock Market Conditions
Since the date of the Original Appraisal, the performance of the broader stock market has generally been positive. All three major U.S. stock indexes closed at record highs going into mid-February 2021, as expectations of a new round of stimulus aid, strong corporate earnings and progress with the rollout of the Covid-19 vaccine fueled stock market gains. The Dow Jones Industrial Average (“DJIA”) closed at a new record high at the conclusion of the Federal Reserve’s policy meeting on February 24th, as the Federal Reserve signaled that it was committed to keeping east-monetary policies unchanged. Led by a decline in technology shares, stocks retreated at the end of February on inflation concerns and rising Treasury yields. The DJIA surged to several record highs during the first half of March, as investors rotated into cyclical stocks following a stronger-than-expected employment report for February and progress on a new stimulus bill. Comparatively, with long-term Treasury yields continuing to rise, the NASDAQ fell into correction territory in the second week of March. After the Federal Reserve pledged to maintain its easy-money policies, the DJIA closed above 33000 for the first time heading into the second half of March. As long-term Treasury yields continued to rise, technology and other high growth stocks experienced further selling pressure heading into the second half of March. Stocks retreated going into late-March and then rallied on signs that the U.S. economy was positioned for a period of rapid growth. For the first quarter overall, the DJIA was up 7.8%, the S&P 500 gained 5.8% and the NASDAQ added 2.8%.
Board of Directors
May 14, 2021
Page 10
Table 4 | ||||||||||||||||||||||||||||||||||||
Credit Risk Measures and Related Information | ||||||||||||||||||||||||||||||||||||
Comparable Institution Analysis | ||||||||||||||||||||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||||||||||||||
NPAs & | Rsrves/ | |||||||||||||||||||||||||||||||||||
REO/ | 90+Del/ | NPLs/ | Rsrves/ | Rsrves/ | NPAs & | Net Loan | NLCs/ | |||||||||||||||||||||||||||||
Assets | Assets (1) | Loans (2) | Loans HFI | NPLs (2) | 90+Del (1) | Chargeoffs (3) | Loans | |||||||||||||||||||||||||||||
(%) | (%) | (%) | (%) | (%) | (%) | ($000) | (%) | |||||||||||||||||||||||||||||
St. Landry Homestead FSB | LA | |||||||||||||||||||||||||||||||||||
March 31, 2021 | 0.23 | % | 2.33 | % | 3.42 | % | 2.03 | % | 59.38 | % | 53.63 | % | $ | 82 | 0.06 | % | ||||||||||||||||||||
All Non-MHC Public Thrifts | ||||||||||||||||||||||||||||||||||||
Averages | 0.03 | % | 0.70 | % | 0.57 | % | 0.97 | % | 1.16 | % | 183.24 | % | 159.85 | % | $ | 3,358 | ||||||||||||||||||||
Medians | 0.01 | % | 0.53 | % | 0.43 | % | 0.72 | % | 1.17 | % | 124.68 | % | 118.31 | % | $ | 222 | ||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||
Averages | 0.04 | % | 0.59 | % | 0.81 | % | 1.05 | % | 184.51 | % | 137.23 | % | $ | 283 | 0.05 | % | ||||||||||||||||||||
Medians | 0.01 | % | 0.51 | % | 0.75 | % | 1.19 | % | 90.93 | % | 88.58 | % | $ | 38 | 0.02 | % | ||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||
CBMB | CBM Bancorp, Inc. | MD | 0.32 | % | 0.48 | % | 0.24 | % | 1.16 | % | 458.09 | % | 149.91 | % | $ | -1 | 0.00 | % | ||||||||||||||||||
CNNB | Cincinnati Bancorp, Inc. | OH | 0.00 | % | 0.54 | % | 0.69 | % | 0.96 | % | 129.69 | % | 129.69 | % | $ | 0 | 0.00 | % | ||||||||||||||||||
ESBK | Elmira Savings Bank | NY | 0.02 | % | 1.00 | % | 1.33 | % | 1.22 | % | 90.93 | % | 88.58 | % | $ | 271 | 0.05 | % | ||||||||||||||||||
FFBW | FFBW, Inc. | WI | 0.00 | % | 0.46 | % | 0.76 | % | 1.36 | % | 179.40 | % | 179.40 | % | $ | -26 | -0.01 | % | ||||||||||||||||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | 0.00 | % | 0.53 | % | 0.79 | % | 0.58 | % | 62.97 | % | 62.97 | % | $ | 1,596 | 0.19 | % | ||||||||||||||||||
HVBC | HV Bancorp, Inc. | PA | 0.00 | % | 0.49 | % | 0.73 | % | 0.58 | % | 67.63 | % | 67.63 | % | $ | 701 | 0.18 | % | ||||||||||||||||||
IROQ | IF Bancorp, Inc. | IL | 0.03 | % | 0.21 | % | 0.24 | % | 1.24 | % | 518.87 | % | 409.21 | % | $ | 218 | 0.04 | % | ||||||||||||||||||
MSVB | Mid-Southern Bancorp, Inc. | IN | 0.04 | % | 0.78 | % | 1.60 | % | 1.40 | % | 87.56 | % | 83.03 | % | $ | 26 | 0.02 | % | ||||||||||||||||||
RNDB | Randolph Bancorp, Inc. | MA | 0.02 | % | 1.38 | % | 1.69 | % | 1.32 | % | 65.49 | % | 64.64 | % | $ | 49 | 0.01 | % | ||||||||||||||||||
WVFC | WVS Financial Corp. | PA | 0.00 | % | 0.00 | % | 0.00 | % | 0.69 | % | NA | NA | $ | 0 | 0.00 | % |
(1) | NPAs are defined as nonaccrual loans, accruing loans 90 days or more past due, performing TDRs, and OREO. |
(2) | NPLs are defined as nonaccrual loans, accruing loans 90 days or more past due and performing TDRs. |
(3) | Net loan chargeoffs are shown on a last twelve month basis. |
Source: S&P Global Market Intelligence and RP® Financial, LC. calculations. The information provided in this table has been obrained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Copyright (c) 2021 by RP® Financial, LC.
Board of Directors
May 14, 2021
Page 11
Led by rebound in technology stocks, the S&P 500 closed above 4000 for the first time at the start of the second quarter of 2021. March jobs data, which showed stronger-than-expected job growth, and a rebound in March service sector activity powered the DJIA and S&P 500 to record highs in the second week of April, as investors bet that economic growth will pick up with more people getting Covid-19 vaccines and increased government spending. Some strong first quarter earnings reports pushed the DJIA and S&P 500 to more record` highs in mid-April, which was followed by stocks trading lower across all sectors heading into the second half of April. Stocks traded unevenly heading into the last week of April, as investors weighed fresh evidence that a strong economic recovery was underway against rising Covid-19 infection levels in some countries and consideration by the Biden administration to raise capital gain taxes. For the month of April, the DJIA, S&P 500 and NASDAQ posted monthly gains of 2.7%, 5.2% and 5.4% respectively.
Economically sensitive shares led the stock market higher at the start of May, as investors reacted to data showing economic growth was picking up and continuation of a strong earnings season. A lackluster April jobs report sparked a rebound in technology shares and other growth stocks, while the DJIA and S&P 500 closed at record highs on May 7th. Stock market turbulence prevailed heading into mid-May, with the broader stock market selling off after a sharp increase in April consumer prices heightened inflation concerns and then ended the week rallying higher. On May 14, 2021, the DJIA closed at 34382.13 or 10.38% higher since the date of the Original Appraisal and the NASDAQ closed at 13429.98 or 3.08% lower since the date of the Original Appraisal.
The overall market for thrift stocks showed solid gains since the date of the Original Appraisal. Expectations of more stimulus, some positive economic reports and rising bond yields contributed to thrift shares trading higher through most of February 2021. After trading lower in late-February on inflation concerns, thrift shares rallied during the first half of March. The SNL Thrift Index for all publicly-traded thrifts was up 9.1% during the first half of March, as investors rotated into economically shares on signs that the U.S. economy was gaining traction in light of the favorable jobs report for March, the signing of a $1.9 trillion relief package and more people getting vaccinated. Thrift shares pulled back towards the close of the first quarter on concerns about the strength of the economic recovery, the Federal Reserve’s ending of a yearlong reprieve that eased capital requirements for big banks and a large investment fund unwound billions of dollars in holdings.
Strong job growth reflected in the March employment data and an improving economic outlook propelled thrift stocks higher at the start of the second quarter of 2021. Despite favorable first quarter earnings posted by Wall Street’s big banks, financial shares edged lower in mid-April as investors focused on the lack of loan growth and net interest margins coming under further pressure. A pick-up in bank merger activity contributed to financial shares trading higher going into the last week of April, which was followed by thrift shares pulling back in the last week of April on signs that inflation was accelerating. Signs that economic growth was accelerating helped to lift thrift shares in early-May. After spiking lower on signs that inflation was heating up, thrift shares powered higher to close out the second week of trading in May as investors saw value in bank stocks that underperformed the broader stock during 2020 and were trading at relatively low P/E multiples compared to the S&P 500. On May 14, 2021, the SNL Thrift Index for all publicly-traded thrifts closed at 991.7, an increase of 16.42% since February 5, 2021.
Board of Directors
May 14, 2021
Page 12
Since the date of the Original Appraisal, the updated pricing measures for the Peer Group and all publicly-traded thrifts reflected increases that were less than the increase recorded in the SNL Thrift Index for all publicly-traded thrifts. The decreases in the P/E multiples were the result of increases in the earnings per share measures for the Peer Group and all publicly-traded thrifts. Since the date of the Original Appraisal, the stock prices of nine out of the ten Peer Group companies were higher as of May 14, 2021. A comparative pricing analysis of the Peer Group and all publicly-traded thrifts is shown in the following table, based on closing stock market prices as of February 5, 2021 and May 14, 2021.
Average Pricing Characteristics
At Feb. 5, 2021 | At
May 14, 2021 | % Change | ||||||||||
Peer Group(1) | ||||||||||||
Price/Earnings (x) | 12.03 | x | 10.37 | x | (13.80 | )% | ||||||
Price/Core Earnings (x) | 12.04 | 10.57 | (12.21 | ) | ||||||||
Price/Book (%) | 90.84 | % | 94.95 | % | 4.52 | |||||||
Price/Tangible Book(%) | 92.70 | 97.15 | 4.80 | |||||||||
Price/Assets (%) | 14.66 | 14.13 | (3.62 | ) | ||||||||
Avg. Mkt. Capitalization ($Mil) | $ | 52.42 | $ | 54.87 | 4.67 | |||||||
All Publicly-Traded Thrifts | ||||||||||||
Price/Earnings (x) | 13.96 | x | 13.43 | x | (3.80 | )% | ||||||
Price/Core Earnings (x) | 13.98 | 13.96 | (0.14 | ) | ||||||||
Price/Book (%) | 103.63 | % | 112.15 | % | 8.22 | |||||||
Price/Tangible Book(%) | 114.74 | 124.47 | 8.48 | |||||||||
Price/Assets (%) | 12.92 | 14.07 | 8.90 | |||||||||
Avg. Mkt. Capitalization ($Mil) | $ | 601.07 | $ | 639.50 | 6.39 |
As set forth in the Original Appraisal, the "new issue" market is separate and distinct from the market for seasoned issues like the Peer Group companies in that the pricing ratios for converting issues are computed on a pro forma basis, specifically: (1) the numerator and denominator are both impacted by the conversion offering amount, unlike existing stock issues in which price change affects only the numerator; and (2) the pro forma pricing ratio incorporates assumptions regarding source and use of proceeds, effective tax rates, stock plan purchases, etc. which impact pro forma financials, whereas pricing for existing issues are based on reported financials. The distinction between the pricing of converting and existing issues is perhaps most evident in the case of the price/book ("P/B") ratio in that the P/B ratio of a converting thrift will typically result in a discount to book value, whereas in the current market for existing thrifts the P/B ratio may reflect a premium to book value. Therefore, it is appropriate to also consider the market for new issues, both at the time of the conversion and in the aftermarket.
Board of Directors
May 14, 2021
Page 13
As shown in Table 5, there have been no standard conversions completed during the past three months and two standard conversion offerings have been completed during the past twelve months. Both standard conversion offerings were completed in October 2020, one of which was significantly larger than St. Landry Homestead’s offering and one of which was significantly smaller than St. Landry Homestead’s offering. The average closing pro forma price/tangible book ratio of the two recent standard conversion offerings equaled 61.8%. On average, the two standard conversion offerings reflected price appreciation of 12.4% after the first week of trading. As of May 14, 2021, the two recent standard conversion offerings reflected an average stock price increase of 58.4% from their IPO prices.
Table 5
Pricing Characteristics and After-Market Trends
Conversions Completed in Trailing 12 Months
Institutional Information | Pre-Conversion Data | Contribution to | Insider Purchases | |||||||||||||||||||||||||||||||||||
Financial Info. | Asset Quality | Offering Information | Char. Found. | % Off Incl. Fdn.+Merger Shares | ||||||||||||||||||||||||||||||||||
Excluding Foundation | Benefit Plans | Initial | ||||||||||||||||||||||||||||||||||||
Conversion | Equity/ | NPAs/ | Res. | Gross | % | % of | Exp./ | Public Off. | Recog. | Stk | Mgmt.& | Div. | ||||||||||||||||||||||||||
Institution | Date | Ticker | Assets | Assets | Assets | Cov. | Proc. | Offer | Mid. | Proc. | Form | Inc. Fdn. | ESOP | Plans | Option | Dirs. | Yield | |||||||||||||||||||||
($Mil) | (%) | (%) | (%) | ($Mil.) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%)(1) | (%) | |||||||||||||||||||||||||
Standard Conversions | ||||||||||||||||||||||||||||||||||||||
Eastern Bankshares, Inc., MA* | 10/15/20 EBC-NASDAQ | $ | 13,997 | 12.10 | % | 0.04 | % | 211 | % | $ | 1,797.1 | 100 | % | 118 | % | 1.6 | % | $ | 4.0% | 8.0 | % | 4.0 | % | 10.0 | % | 0.1 | % | 0.00 | % | |||||||||
Systematic Savings Bank, MO | 10/14/20 | SSSB-OTCPink | $ | 40 | 12.64 | % | 8.00 | % | NM | $ | 6.0 | 100 | % | 132 | % | 14.3 | % | N.A. | N.A. | 0.0 | % | 0.0 | % | 0.0 | % | 18.0 | % | 0.00 | % | |||||||||
Averages - Standard Conversions: | $ | 7,018 | 12.37 | % | 4.02 | % | 211 | % | $ | 901.5 | 100 | % | 125 | % | 7.9 | % | N.A. | N.A. | 4.0 | % | 2.0 | % | 5.0 | % | 9.1 | % | 0.00 | % | ||||||||||
Medians - Standard Conversions: | $ | 7,018 | 12.37 | % | 4.02 | % | 211 | % | $ | 901.5 | 100 | % | 125 | % | 7.9 | % | N.A. | N.A. | 4.0 | % | 2.0 | % | 5.0 | % | 9.1 | % | 0.00 | % | ||||||||||
Second Step Conversions | ||||||||||||||||||||||||||||||||||||||
William Penn Bancorporation, PA* | 3/25/21 | WMPN-NASDAQ | $ | 737 | 13.70 | % | 0.67 | % | 75 | % | $ | 126.4 | 83 | % | 115 | % | 2.0 | % | N.A. | N.A. | 8.0 | % | 4.0 | % | 10.0 | % | 1.0 | % | 1.29 | % | ||||||||
Affinity Bancshares, Inc., GA* | 1/21/21 | AFBI-NASDAQ | $ | 888 | 8.93 | % | 0.56 | % | 154 | % | $ | 37.0 | 54 | % | 132 | % | 4.1 | % | N.A. | N.A. | 8.0 | % | 4.0 | % | 10.0 | % | 3.5 | % | 0.00 | % | ||||||||
Generations Bancorp NY, Inc. | 1/13/21 | GBNY-NASDAQ | $ | 368 | 8.10 | % | 1.08 | % | 54 | % | $ | 14.8 | 60 | % | 98 | % | 8.8 | % | N.A. | N.A. | 8.0 | % | 4.0 | % | 10.0 | % | 3.1 | % | 0.00 | % | ||||||||
Averages - Second Step Conversions: | $ | 664 | 10.24 | % | 0.77 | % | 94 | % | $ | 59.4 | 66 | % | 115 | % | 5.0 | % | N.A. | N.A. | 8.0 | % | 4.0 | % | 10.0 | % | 2.5 | % | 0.43 | % | ||||||||||
Medians - Second Step Conversions: | $ | 737 | 8.93 | % | 0.67 | % | 75 | % | $ | 37.0 | 60 | % | 115 | % | 4.1 | % | N.A. | N.A. | 8.0 | % | 4.0 | % | 10.0 | % | 3.1 | % | 0.00 | % | ||||||||||
Mutual Holding Companies | ||||||||||||||||||||||||||||||||||||||
Marathon Bancorp, Inc., WI* | 4/20/21 | MBBC-OTCPink | $ | 174 | 12.39 | % | 0.22 | % | 562 | % | $ | 10.0 | 45 | % | 124 | % | 12.2 | % | N.A. | N.A. | 8.7 | % | 4.4 | % | 10.9 | % | 7.0 | % | 0.00 | % | ||||||||
Averages - MHC Conversions: | $ | 174 | 12.39 | % | 0.22 | % | 562 | % | $ | 10.0 | 45 | % | 124 | % | 12.2 | % | N.A. | N.A. | 8.7 | % | 4.4 | % | 10.9 | % | 7.0 | % | 0.00 | % | ||||||||||
Medians - MHC Conversions: | $ | 174 | 12.39 | % | 0.22 | % | 562 | % | $ | 10.0 | 45 | % | 124 | % | 12.2 | % | N.A. | N.A. | 8.7 | % | 4.4 | % | 10.9 | % | 7.0 | % | 0.00 | % | ||||||||||
Averages - All Conversions: | $ | 2,701 | 11.31 | % | 1.76 | % | 211 | % | $ | 331.9 | 74 | % | 120 | % | 7.2 | % | N.A. | N.A. | 6.8 | % | 3.4 | % | 8.5 | % | 5.4 | % | 0.21 | % | ||||||||||
Medians - All Conversions: | $ | 552 | 12.25 | % | 0.62 | % | 154 | % | $ | 25.9 | 72 | % | 121 | % | 6.5 | % | N.A. | N.A. | 8.0 | % | 4.0 | % | 10.0 | % | 3.3 | % | 0.00 | % |
Pro Forma Data | Post-IPO Pricing Trends | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pricing Ratios(2)(5) | Financial Charac. | Closing Price: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
First | After | After | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Core | Core | Core | IPO | Trading | % | First | % | First | % | Thru | % | ||||||||||||||||||||||||||||||||||||||||||||
P/TB | P/E | P/A | ROA | TE/A | ROE | Price | Day | Chg | Week(3) | Chg | Month(4) | Chg | 5/14/2021 | Chg | |||||||||||||||||||||||||||||||||||||||||
(%) | (x) | (%) | (%) | (%) | (%) | ($) | ($) | (%) | ($) | (%) | ($) | (%) | ($) | (%) | |||||||||||||||||||||||||||||||||||||||||
65.0 | % | 22.8 | x | 12.0 | % | 0.5 | % | 19.0 | % | 2.5 | % | $ | 10.00 | $ | 12.15 | 21.5 | % | $ | 12.48 | 24.8 | % | $ | 13.62 | 36.2 | % | $ | 21.68 | 116.8 | % | ||||||||||||||||||||||||||
58.6 | % | 46.5 | x | 13.2 | % | 0.3 | % | 22.5 | % | 1.3 | % | $ | 10.00 | $ | 10.00 | 0.0 | % | $ | 10.00 | 0.0 | % | $ | 10.00 | 0.0 | % | $ | 10.00 | 0.0 | % | ||||||||||||||||||||||||||
61.8 | % | 34.7 | x | 12.6 | % | 0.4 | % | 20.8 | % | 1.9 | % | $ | 10.00 | $ | 11.08 | 10.8 | % | $ | 11.24 | 12.4 | % | $ | 11.81 | 18.1 | % | $ | 15.84 | 58.4 | % | ||||||||||||||||||||||||||
61.8 | % | 34.7 | x | 12.6 | % | 0.4 | % | 20.8 | % | 1.9 | % | $ | 10.00 | $ | 11.08 | 10.8 | % | $ | 11.24 | 12.4 | % | $ | 11.81 | 18.1 | % | $ | 15.84 | 58.4 | % | ||||||||||||||||||||||||||
74.5 | % | 106.6 | x | 17.9 | % | 0.2 | % | 24.3 | % | 0.7 | % | $ | 10.00 | $ | 11.41 | 14.1 | % | $ | 11.36 | 13.6 | % | $ | 11.39 | 13.9 | % | $ | 11.36 | 13.6 | % | ||||||||||||||||||||||||||
75.3 | % | 17.6 | x | 7.5 | % | 0.4 | % | 10.2 | % | 3.6 | % | $ | 10.00 | $ | 10.85 | 8.5 | % | $ | 10.75 | 7.5 | % | $ | 11.30 | 13.0 | % | $ | 12.49 | 24.9 | % | ||||||||||||||||||||||||||
61.7 | % | 15.0 | x | 6.5 | % | 0.4 | % | 10.5 | % | 4.0 | % | $ | 10.00 | $ | 10.05 | 0.5 | % | $ | 9.56 | -4.4 | % | $ | 9.48 | -5.2 | % | $ | 9.93 | -0.7 | % | ||||||||||||||||||||||||||
70.5 | % | 46.4 | x | 10.6 | % | 0.3 | % | 15.0 | % | 2.7 | % | $ | 10.00 | $ | 10.77 | 7.7 | % | $ | 10.56 | 5.6 | % | $ | 10.72 | 7.2 | % | $ | 11.26 | 12.6 | % | ||||||||||||||||||||||||||
74.5 | % | 17.6 | x | 7.5 | % | 0.4 | % | 10.5 | % | 3.6 | % | $ | 10.00 | $ | 10.85 | 8.5 | % | $ | 10.75 | 7.5 | % | $ | 11.30 | 13.0 | % | $ | 11.36 | 13.6 | % | ||||||||||||||||||||||||||
55.8 | % | 35.4 | x | 11.6 | % | 0.4 | % | 16.0 | % | 2.6 | % | $ | 10.00 | $ | 10.10 | 1.00 | % | $ | 10.27 | 2.7 | % | $ | 10.40 | 4.0 | % | $ | 10.30 | 3.0 | % | ||||||||||||||||||||||||||
55.8 | % | 35.4 | x | 11.6 | % | 0.4 | % | 16.0 | % | 2.6 | % | $ | 10.00 | $ | 10.10 | 1.0 | % | $ | 10.27 | 2.7 | % | $ | 10.40 | 4.0 | % | $ | 10.30 | 3.0 | % | ||||||||||||||||||||||||||
55.8 | % | 35.4 | x | 11.6 | % | 0.4 | % | 16.0 | % | 2.6 | % | $ | 10.00 | $ | 10.10 | 1.0 | % | $ | 10.27 | 2.7 | % | $ | 10.40 | 4.0 | % | $ | 10.30 | 3.0 | % | ||||||||||||||||||||||||||
65.1 | % | 40.7 | x | 11.4 | % | 0.4 | % | 17.1 | % | 2.4 | % | $ | 10.00 | $ | 10.76 | 7.6 | % | $ | 10.74 | 7.4 | % | $ | 11.03 | 10.3 | % | $ | 12.63 | 26.3 | % | ||||||||||||||||||||||||||
63.4 | % | 29.1 | x | 11.8 | % | 0.4 | % | 17.5 | % | 2.6 | % | $ | 10.00 | $ | 10.48 | 4.8 | % | $ | 10.51 | 5.1 | % | $ | 10.85 | 8.5 | % | $ | 10.83 | 8.3 | % |
Note: * - Appraisal performed by RP Financial; BOLD = RP Financial assisted in the business plan preparation, "NT" - Not Traded; "NA" - Not Applicable, Not Available; C/S-Cash/Stock.
(1) As a percent of MHC offering for MHC transactions.
(2) Does not take into account the adoption of SOP 93-6.
(3) Latest price if offering is less than one week old.
(4) Latest price if offering is more than one week but less than one month old.
(5) Mutual holding company pro forma data on full conversion basis.
(6) Simultaneously completed acquisition of another financial institution.
(7) Simultaneously converted to a commercial bank charter.
(8) Former credit union.
5/14/2021
Board of Directors
May 14, 2021
Page 14
Summary of Adjustments
In the Original Appraisal, we made the following adjustments to St. Landry Homestead’s pro forma value based upon our comparative analysis to the Peer Group:
PreviousValuation | ||
Key Valuation Parameters: | Adjustment | |
Financial Condition | No Adjustment | |
Profitability, Growth and Viability of Earnings | Moderate Downward | |
Asset Growth | No Adjustment | |
Primary Market Area | Slight Downward | |
Dividends | No Adjustment | |
Liquidity of the Shares | No Adjustment | |
Marketing of the Issue | No Adjustment | |
Management | No Adjustment | |
Effect of Govt. Regulations and Regulatory Reform | No Adjustment |
The factors concerning the valuation parameters of primary market area, dividends, liquidity of the shares, management and effect of government regulations and regulatory reform did not change since the Original Appraisal. Accordingly, those parameters were not discussed further in this update.
No adjustment remained appropriate for financial condition, as slight upward adjustments applied for the Bank’s pro forma liquidity, funding composition and capital strength continued to be offset by the moderate downward adjustment applied for the Bank’s credit quality. Likewise, no adjustment remained appropriate for the Bank’s asset growth, as the Peer Group’s stronger historical asset growth, which included stronger loan growth, continued to be offset by the Bank’s significantly higher pro forma tangible equity-to-assets ratio and resulting greater leverage capacity. A moderate downward adjustment remained appropriate for earnings, based on downward adjustments that continued to be warranted for the Bank’s lower core earnings on a ROAA basis, less favorable efficiency ratio, higher implied credit risk associated with earnings and lower pro forma core ROE.
The general market for thrift stocks showed a healthy increase since the date of the Original Appraisal, with the SNL Thrift Index for all publicly-traded thrifts increasing 16.42% compared to an increase of 10.38% in the DJIA. Comparatively, the updated pricing measures for the Peer Group and all publicly traded thrifts were generally higher since the date of the Original Appraisal, but were well below the increase that was recorded in the SNL Thrift Index. No standard conversion offerings have been completed during the past three months and two standard conversion offerings were completed during the past twelve months, neither of which were viewed be comparable to the Bank’s offering based on the significantly larger and smaller sizes of their respective offerings.
Board of Directors
May 14, 2021
Page 15
Overall, taking into account the foregoing factors, we believe that an increase in St. Landry Homestead’s estimated pro market value as set forth in the Original Appraisal is appropriate.
Valuation Approaches
In applying the accepted valuation methodology promulgated by the regulatory agencies, i.e., the pro forma market value approach, we considered the three key pricing ratios in valuing St. Landry Homestead’s to-be-issued stock -- price/earnings ("P/E"), price/book ("P/B"), and price/assets ("P/A") approaches -- all performed on a pro forma basis including the effects of the conversion proceeds.
In computing the pro forma impact of the offering and the related pricing ratios, the valuation parameters utilized in the Original Appraisal were updated with financial data as of March 31, 2021.
Consistent with the Original Appraisal, this updated appraisal continues to be based primarily on fundamental analysis techniques applied to the Peer Group, including the P/E approach, the P/B approach and the P/A approach. Also consistent with the Original Appraisal, this updated appraisal incorporates a "technical" analysis of recently completed offerings, including principally the P/B approach which (as discussed in the Original Appraisal) is the most meaningful pricing ratio as the pro forma P/E ratios reflect an assumed reinvestment rate and do not yet reflect the actual use of proceeds.
The Bank will adopt “Employers’ Accounting for Employee Stock Ownership Plans” (“ASC 718-40”), which will cause earnings per share computations to be based on shares issued and outstanding excluding unreleased ESOP shares. For purposes of preparing the pro forma pricing analyses, we have reflected all shares issued in the offering, including all ESOP shares, to capture the full dilutive impact, particularly since the ESOP shares are economically dilutive, receive dividends and can be voted. However, we did consider the impact of the adoption of ASC 718-40 in the valuation.
Based on the foregoing, we have concluded that an increase in St. Landry Homestead’s value is appropriate. Therefore, as of May 14, 2021, the pro forma market value of St. Landry Homestead’s conversion stock equaled $40,000,000 at the midpoint, equal to 4,000,000 at $10.00 per share. The updated midpoint value represents an increase of 3.90% from the pro forma market value set forth in the Original Appraisal.
1. P/E Approach. In applying the P/E approach, RP Financial's valuation conclusions considered both reported earnings and a recurring or "core" earnings base, that is, earnings adjusted to exclude any one time non-operating gains and losses and extraordinary items, plus the estimated after tax-earnings benefit from reinvestment of net stock proceeds. The Bank’s reported earnings equaled a net loss of $707,000 for the twelve months ended March 31, 2021. In deriving St. Landry Homestead’s core earnings, the adjustments made to reported earnings were to eliminate the loss on REO of $256,000 and the prepayment penalties on FHLB advances of $1.510 million. As shown below, on a tax effected basis, assuming an effective marginal tax rate of 21.0% for the earnings adjustments, the Bank’s core earnings were determined to equal $688,000 for the twelve months ended March 31, 2021.
Board of Directors
May 14, 2021
Page 16
Amount | ||||
($000) | ||||
Net income (loss) | $ | (707 | ) | |
Add: Prepayment penalties on FHLB advances (1) | 1,193 | |||
Add: Loss on REO (1) | 202 | |||
Core earnings estimate | $ | 688 |
(1) | Tax effected at 21.0%. |
Based on the Bank’s pro forma reported and core earnings net losses at the updated midpoint value, the Company’s pro forma reported and core P/E multiples were not meaningful “(NM”). Comparatively, the Peer Group’s average reported and core P/E multiples equaled 10.37 times and 10.57 times, respectively (see Table 6). The Peer Group’s median reported and core earnings multiples both equaled 11.04 times.
2. P/B Approach. P/B ratios have generally served as a useful benchmark in the valuation of thrift stocks, with the greater determinant of long term value being earnings. In applying the P/B approach, we considered both reported book value and tangible book value. Based on the $40.0 million updated midpoint value, the Bank’s P/B and P/TB ratios both equaled 47.57%. In comparison to the average P/B and P/TB ratios indicated for the Peer Group of 94.95% and 97.15%, respectively, St. Landry Homestead’s updated ratios indicated discounts of 49.90% on a P/B basis and 51.03% on a P/TB basis (versus discounts of 48.99% and 50.01% from the Peer Group’s average P/B and P/TB ratios as indicated in the Original Appraisal). In comparison to the median P/B and P/TB ratios indicated for the Peer Group of 98.69% and 100.18%, respectively, St. Landry Homestead’s updated ratios at the updated midpoint value indicated discounts of 51.80% and 52.55% (versus discounts of 49.92% and 50.03% from the Peer Group’s median P/B and P/TB ratios as indicated in the Original Appraisal). At the top of the super range, the Bank’s P/B and P/TB ratios both equaled 55.49%. In comparison to the Peer Group’s average P/B and P/TB ratios, the Bank’s P/B and P/TB ratios at the top of the super range indicated discounts of 41.56% and 42.88%, respectively. In comparison to the Peer Group’s median P/B and P/TB ratios, the Bank’s updated P/B and P/TB ratios at the top of the super range indicated discounts of 43.77% and 44.61%, respectively. RP Financial considered the discounts under the P/TB approach to be reasonable, given the nature of the calculation of the P/B ratio which mathematically results in a ratio discounted to book value. The discounts reflected under the P/B approach were also supported by the Bank’s NM pro forma reported and core P/E multiples.
In addition to the fundamental analysis applied to the Peer Group, RP Financial utilized a technical analysis of recent conversion offerings. As indicated in the Original Appraisal, the pricing characteristics of recent conversion offerings are not the primary determinate of value. Consistent with the Original Appraisal, particular focus was placed on the P/TB approach in this analysis since the P/E multiples do not reflect the actual impact of reinvestment and the source of the conversion funds (i.e., external funds versus deposit withdrawals).
Board of Directors
May 14, 2021
Page 17
Table 6
Market Pricing Versus Peer Group
St. Landry Homestead
As of May 14, 2021
Market | Per Share Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalization | Core | Book | Dividends(3) | Financial Characteristics(5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price/ | Market | 12 Month | Value/ | Pricing Ratios(2) | Amount/ | Payout | Total | Equity/ | Tang. Eq./ | NPAs/ | Reported | Core | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share | Value | EPS(1) | Share | P/E | P/B | P/A | P/TB | P/Core | Share | Yield | Ratio(4) | Assets | Assets | T. Assets | Assets | ROAA | ROAE | ROAA | ROAE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($) | ($Mil) | ($) | ($) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ($Mil) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
St. Landry Homestead FSB | LA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Super Maximum | $ | 10.00 | $ | 52.90 | ($ | 0.04 | ) | $ | 18.02 | NM | 55.49 | % | 18.78 | % | 55.49 | % | NM | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 282 | 33.84 | % | 33.84 | % | 1.96 | % | -0.57 | % | -1.69 | % | -0.08 | % | -0.22 | % | |||||||||||||||||||||||||||||||||||||||||||||
Maximum | $ | 10.00 | $ | 46.00 | ($ | 0.03 | ) | $ | 19.41 | NM | 51.52 | % | 16.69 | % | 51.52 | % | NM | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 276 | 32.39 | % | 32.39 | % | 2.00 | % | -0.55 | % | -1.70 | % | -0.04 | % | -0.14 | % | |||||||||||||||||||||||||||||||||||||||||||||
Midpoint | $ | 10.00 | $ | 40.00 | ($ | 0.01 | ) | $ | 21.02 | NM | 47.57 | % | 14.79 | % | 47.57 | % | NM | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 270 | 31.08 | % | 31.08 | % | 2.04 | % | -0.53 | % | -1.71 | % | -0.02 | % | -0.05 | % | |||||||||||||||||||||||||||||||||||||||||||||
Minimum | $ | 10.00 | $ | 34.00 | $ | 0.01 | $ | 23.19 | NM | 43.12 | % | 12.82 | % | 43.12 | % | 1031.49 | x | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 265 | 29.73 | % | 29.73 | % | 2.08 | % | -0.51 | % | -1.73 | % | 0.01 | % | 0.04 | % | |||||||||||||||||||||||||||||||||||||||||||||
All Non-MHC Public Thrifts(6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | $ | 26.51 | $ | 639.50 | $ | 2.29 | $ | 20.38 | 13.43 | x | 112.15 | % | 14.07 | % | 124.47 | % | 13.96 | x | $ | 0.45 | 2.20 | % | 43.89 | % | $ | 4,625 | 12.83 | % | 11.60 | % | 0.72 | % | 1.04 | % | 8.41 | % | 1.09 | % | 8.87 | % | ||||||||||||||||||||||||||||||||||||||||||||
Median | $ | 15.73 | $ | 188.72 | $ | 1.14 | $ | 16.75 | 13.35 | x | 104.14 | % | 12.65 | % | 108.28 | % | 13.36 | x | $ | 0.34 | 2.00 | % | 31.40 | % | $ | 1,718 | 11.61 | % | 10.59 | % | 0.53 | % | 0.83 | % | 6.97 | % | 0.90 | % | 7.36 | % | ||||||||||||||||||||||||||||||||||||||||||||
All Non-MHC State of LA(6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | $ | 16.50 | $ | 51.59 | $ | 1.50 | $ | 15.47 | 11.04 | x | 106.64 | % | 9.87 | % | 106.64 | % | 11.04 | x | $ | 0.33 | 2.00 | % | 22.07 | % | $ | 563 | 9.26 | % | 9.26 | % | 0.48 | % | 0.97 | % | 10.07 | % | 0.97 | % | 10.07 | % | ||||||||||||||||||||||||||||||||||||||||||||
Medians | $ | 16.50 | $ | 51.59 | $ | 1.50 | $ | 15.47 | 11.04 | x | 106.64 | % | 9.87 | % | 106.64 | % | 11.04 | x | $ | 0.33 | 2.00 | % | 22.07 | % | $ | 563 | 9.26 | % | 9.26 | % | 0.48 | % | 0.97 | % | 10.07 | % | 0.97 | % | 10.07 | % | ||||||||||||||||||||||||||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Averages | $ | 16.32 | $ | 54.87 | $ | 1.61 | $ | 17.31 | 10.37 | x | 94.95 | % | 14.13 | % | 97.15 | % | 10.57 | x | $ | 0.18 | 1.11 | % | 16.48 | % | $ | 466 | 15.00 | % | 14.81 | % | 0.54 | % | 1.11 | % | 9.35 | % | 1.11 | % | 9.28 | % | ||||||||||||||||||||||||||||||||||||||||||||
Medians | $ | 15.51 | $ | 48.11 | $ | 1.34 | $ | 16.35 | 11.04 | x | 98.69 | % | 12.44 | % | 100.18 | % | 11.04 | x | $ | 0.06 | 0.39 | % | 8.02 | % | $ | 451 | 12.96 | % | 12.96 | % | 0.48 | % | 0.73 | % | 6.91 | % | 0.70 | % | 6.71 | % | ||||||||||||||||||||||||||||||||||||||||||||
Comparable Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CBMB | CBM Bancorp, Inc. | MD | $ | 14.56 | $ | 47.91 | $ | 0.24 | $ | 14.15 | NM | 102.94 | % | 21.42 | % | 102.94 | % | NM | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 240 | 20.80 | % | 20.80 | % | 0.48 | % | 0.38 | % | 1.67 | % | 0.35 | % | 1.53 | % | ||||||||||||||||||||||||||||||||||||||||||||
CNNB | Cincinnati Bancorp, Inc. | OH | $ | 13.87 | $ | 41.23 | $ | 1.68 | $ | 14.40 | 8.31 | x | 96.33 | % | 17.13 | % | 96.71 | % | 8.27 | x | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 241 | 17.78 | % | 17.72 | % | 0.54 | % | 2.01 | % | 13.50 | % | 2.02 | % | 13.55 | % | ||||||||||||||||||||||||||||||||||||||||||
ESBK | Elmira Savings Bank | NY | $ | 13.64 | $ | 48.32 | $ | 1.19 | $ | 17.23 | 11.46 | x | 79.15 | % | 7.46 | % | 99.30 | % | 11.48 | x | $ | 0.60 | 4.40 | % | 50.42 | % | $ | 645 | 9.43 | % | 7.66 | % | NA | 0.64 | % | 6.95 | % | 0.64 | % | 6.97 | % | |||||||||||||||||||||||||||||||||||||||||||
FFBW | FFBW, Inc. | WI | $ | 11.30 | $ | 75.75 | $ | 0.30 | $ | 13.60 | NM | 83.11 | % | 24.38 | % | 84.55 | % | NM | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 338 | 29.33 | % | 29.33 | % | 0.46 | % | 0.66 | % | 2.27 | % | 0.66 | % | 2.27 | % | ||||||||||||||||||||||||||||||||||||||||||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | LA | $ | 16.50 | $ | 51.59 | $ | 1.50 | $ | 15.47 | 11.04 | x | 106.64 | % | 9.87 | % | 106.64 | % | 11.04 | x | $ | 0.33 | 2.00 | % | 22.07 | % | $ | 563 | 9.26 | % | 9.26 | % | 0.48 | % | 0.97 | % | 10.07 | % | 0.97 | % | 10.07 | % | ||||||||||||||||||||||||||||||||||||||||||
HVBC | HV Bancorp, Inc. | PA | $ | 19.46 | $ | 39.61 | $ | 3.37 | $ | 18.32 | 5.69 | x | 106.22 | % | 7.11 | % | 106.22 | % | 5.78 | x | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 596 | 6.69 | % | 6.69 | % | 0.53 | % | 1.26 | % | 19.65 | % | 1.24 | % | 19.34 | % | ||||||||||||||||||||||||||||||||||||||||||
IROQ | IF Bancorp, Inc. | IL | $ | 22.24 | $ | 67.57 | $ | 1.75 | $ | 25.76 | 11.89 | x | 86.32 | % | 9.67 | % | 86.32 | % | 12.68 | x | $ | 0.30 | 1.35 | % | 16.04 | % | $ | 745 | 11.20 | % | 11.20 | % | 0.20 | % | 0.79 | % | 6.87 | % | 0.74 | % | 6.45 | % | ||||||||||||||||||||||||||||||||||||||||||
MSVB | Mid-Southern Bancorp, Inc. | IN | $ | 15.25 | $ | 45.69 | $ | 0.37 | $ | 15.09 | NM | 101.05 | % | 19.76 | % | 101.05 | % | NM | $ | 0.12 | 0.79 | % | 25.64 | % | $ | 245 | 19.55 | % | 19.55 | % | 0.81 | % | 0.53 | % | 2.40 | % | 0.49 | % | 2.23 | % | ||||||||||||||||||||||||||||||||||||||||||||
RNDB | Randolph Bancorp, Inc. | MA | $ | 20.66 | $ | 103.66 | $ | 4.90 | $ | 18.80 | 4.29 | x | 109.88 | % | 15.01 | % | 109.88 | % | 4.22 | x | $ | 0.00 | 0.00 | % | 0.00 | % | $ | 738 | 13.66 | % | 13.66 | % | 1.38 | % | 3.49 | % | 26.37 | % | 3.55 | % | 26.80 | % | ||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS Financial Corp. | PA | $ | 15.76 | $ | 27.39 | $ | 0.77 | $ | 20.24 | 19.95 | x | 77.87 | % | 9.54 | % | 77.87 | % | 20.50 | x | $ | 0.40 | 2.54 | % | 50.63 | % | $ | 314 | 12.25 | % | 12.25 | % | 0.00 | % | 0.41 | % | 3.73 | % | 0.40 | % | 3.62 | % |
(1) | Core income, on a diluted per-share basis. Core income is net income after taxes and before extraordinary items, less net income attributable to noncontrolling interest, gain on the sale of securities, amortization of intangibles, goodwill and nonrecurring items. Assumed tax rate is 35%. |
(2) | P/E = Price to earnings; P/B = Price to book; P/A = Price to assets; P/TB = Price to tangible book value; and P/Core = Price to core earnings. P/E and P/Core =NM if the ratio is negative or above 35x. |
(3) | Indicated 12 month dividend, based on last quarterly dividend declared. |
(4) | Indicated 12 month dividend as a percent of trailing 12 month earnings. |
(5) | Equity and tangible equity equal common equity and tangible common equity, respectively. ROAA (return on average assets) and ROAE (return on average equity) are indicated ratios based on trailing 12 month earnings and average equity and assets balances. |
(6) | Excludes from averages and medians those companies the subject of actual or rumored acquisition activities or unusual operating characteristics. |
Source: | S&P Global Market Intelligence and RP Financial, LC. calculations. The information provided in this report has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information. |
Copyright (c) 2021 by RP® Financial, LC.
Board of Directors
May 14, 2021
Page 18
As discussed previously, the two most recent standard conversion offerings were completed in October 2020. In comparison to the 61.80% average closing forma P/TB ratio of the two recent standard conversions, the Bank’s P/TB ratio of 47.57% at the updated midpoint value reflects an implied discount of 23.03%. At the top of the super maximum, the Bank’s P/TB ratio of 55.49% reflects an implied discount of 10.21% relative to the recent standard conversions average P/TB ratio at closing.
3. P/A Approach. P/A ratios are generally not as a reliable indicator of market value, as investors do not place significant weight on total assets as a determinant of market value. Investors place significantly greater weight on book value and earnings -- which have received greater weight in our valuation analysis. At the $40.0 million updated midpoint value, St. Landry Homestead’s pro forma P/A ratio equaled 14.79%. In comparison to the Peer Group's average P/A ratio of 14.13%, St. Landry Homestead’s P/A ratio indicated a premium of 4.67% (versus a premium of 2.11% at the midpoint valuation in the Original Appraisal). In comparison to the Peer Group’s median P/A ratio of 12.44%, St. Landry Homestead’s P/A ratio at the $40.0 million updated midpoint value indicated a premium of 18.89% (versus a premium of 21.71% at the midpoint valuation in the Original Appraisal).
Valuation Conclusion
We have concluded that the Bank’s estimated pro forma market value should be increased since the date of the Original Appraisal. Accordingly, it is our opinion that, as of May 14, 2021, the estimated aggregate pro forma market value of the shares to be issued immediately following the conversion equaled $40,000,000 at the midpoint, equal to 4,000,000 shares offered at a per share value of $10.00. Pursuant to conversion guidelines, the 15% offering range indicates a minimum value of $34,000,000 and a maximum value of $46,000,000. Based on the $10.00 per share offering price determined by the Board, this valuation range equates to total shares outstanding of 3,400,000 at the minimum and 4,600,000 at the maximum. In the event the appraised value is subject to an increase, the aggregate pro forma market value may be increased up to a super maximum value of $52,900,000 without a resolicitation. Based on the $10.00 per share offering price, the super range value would result in total shares outstanding of 5,290,000. The pro forma valuation calculations relative to the Peer Group are shown in Table 6 and are detailed in Exhibit 2 and Exhibit 3.
Respectfully submitted, | |
RP® FINANCIAL, LC. | |
Ronald S. Riggins | |
President and Managing Director | |
Gregory E. Dunn | |
Director |
EXHIBITS
LIST OF EXHIBITS
Exhibit Number |
Description | |
1 | Stock Prices: As of May 14, 2021 | |
2 | Pro Forma Analysis Sheet | |
3 | Pro Forma Effect of Conversion Proceeds | |
4 | Firm Qualifications Statement |
EXHIBIT 1
Stock Prices
As of May 14, 2021
RP® Financial, LC.
Exhibit 1A
Weekly Thrift Market Line - Part One
Prices As of May 14, 2021
Market Capitalization | Price Change Data | Current Per Share Financials | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price/ | Shares | Market | 52 Week (1) | % Change From | LTM | LTM Core | BV/ | TBV/ | Assets/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share(1) | Outstanding | Capitalization | High | Low | Last Wk | Last Wk | 52 Wks (2) | MRY (2) | EPS (3) | EPS (3) | Share | Share (4) | Share | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||
($) | (000) | ($Mil) | ($) | ($) | ($) | (%) | (%) | (%) | ($) | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AFBI | Affinity Bancshares, Inc. | SE | 12.49 | 6,875 | 85.9 | 12.91 | 6.53 | 12.58 | -0.72 | 78.43 | 26.18 | 0.89 | NA | 16.76 | 14.02 | 115.96 | 797,268 | ||||||||||||||||||||||||||||||||||||||||||||||||
AX | Axos Financial, Inc. | WE | 46.47 | 59,238 | 2,752.8 | 54.36 | 18.24 | 46.27 | 0.43 | 144.97 | 23.82 | 3.43 | 3.69 | 22.72 | 20.72 | 250.31 | 14,827,874 | ||||||||||||||||||||||||||||||||||||||||||||||||
BYFC | Broadway Financial Corporation | WE | 2.16 | 27,337 | 59.0 | 7.23 | 1.09 | 1.84 | 17.39 | 52.18 | 16.76 | -0.15 | NA | 1.62 | 1.62 | 17.54 | 479,594 | ||||||||||||||||||||||||||||||||||||||||||||||||
CFFN | Capitol Federal Financial, Inc. | MW | 13.03 | 135,494 | 1,765.5 | 14.38 | 8.75 | 13.09 | -0.46 | 22.69 | 4.24 | 0.56 | 0.56 | 9.21 | 9.11 | 71.58 | 9,698,019 | ||||||||||||||||||||||||||||||||||||||||||||||||
CARV | Carver Bancorp, Inc. | MA | 7.92 | 3,221 | 25.5 | 22.97 | 1.41 | 8.05 | -1.61 | 365.06 | 22.03 | -1.36 | -1.49 | 9.43 | 9.43 | 213.12 | 686,399 | ||||||||||||||||||||||||||||||||||||||||||||||||
CBMB | CBM Bancorp, Inc. | MA | 14.56 | 3,290 | 47.9 | 15.15 | 11.56 | 14.65 | -0.60 | 18.39 | 9.66 | 0.26 | 0.24 | 14.15 | 14.15 | 72.89 | 239,819 | ||||||||||||||||||||||||||||||||||||||||||||||||
CNNB | Cincinnati Bancorp, Inc. | MW | 13.87 | 2,973 | 41.2 | 13.99 | 8.60 | 13.70 | 1.24 | 58.33 | 16.07 | 1.67 | 1.68 | 14.40 | 14.34 | 80.97 | 240,708 | ||||||||||||||||||||||||||||||||||||||||||||||||
ESBK | Elmira Savings Bank | MA | 13.64 | 3,542 | 48.3 | 16.00 | 10.30 | 13.85 | -1.54 | 9.12 | 18.61 | 1.19 | 1.19 | 17.23 | 13.74 | 0.00 | 644,587 | ||||||||||||||||||||||||||||||||||||||||||||||||
ESSA | ESSA Bancorp, Inc. | MA | 15.70 | 10,085 | 156.9 | 18.23 | 11.05 | 15.52 | 1.16 | 33.73 | 4.67 | 1.56 | 1.53 | 18.51 | 17.16 | 0.00 | 1,969,789 | ||||||||||||||||||||||||||||||||||||||||||||||||
FFBW | FFBW, Inc. | MW | 11.30 | 6,704 | 75.8 | 11.50 | 7.86 | 11.17 | 1.16 | 29.61 | 12.77 | 0.29 | NA | 13.60 | NA | 0.00 | 337,751 | ||||||||||||||||||||||||||||||||||||||||||||||||
FNWB | First Northwest Bancorp | WE | 17.04 | 9,489 | 155.4 | 18.74 | 9.45 | 16.63 | 2.47 | 59.55 | 9.23 | 1.36 | 1.14 | 17.86 | 17.86 | 0.00 | 1,736,293 | ||||||||||||||||||||||||||||||||||||||||||||||||
FSBW | FS Bancorp, Inc. | WE | 70.44 | 4,153 | 291.9 | 73.62 | 32.78 | 69.50 | 1.35 | 96.49 | 28.54 | 10.54 | 10.61 | 56.77 | 55.14 | 0.00 | 2,175,586 | ||||||||||||||||||||||||||||||||||||||||||||||||
GBNY | Generations Bancorp NY, Inc. | MA | 9.93 | 2,458 | 24.4 | 11.75 | 6.67 | 9.92 | 0.10 | 9.72 | -4.70 | 0.86 | 0.38 | 17.06 | 16.40 | 0.00 | 381,940 | ||||||||||||||||||||||||||||||||||||||||||||||||
HONE | HarborOne Bancorp, Inc. | NE | 14.82 | 56,175 | 832.5 | 15.14 | 7.23 | 14.25 | 4.00 | 99.73 | 36.46 | 1.11 | 1.13 | 12.41 | 11.10 | 0.00 | 4,605,958 | ||||||||||||||||||||||||||||||||||||||||||||||||
HIFS | Hingham Institution for Savings | NE | 294.00 | 2,142 | 629.9 | 325.90 | 141.03 | 307.06 | -4.25 | 107.03 | 36.11 | 29.69 | 22.69 | 144.12 | 144.12 | 0.00 | 2,844,114 | ||||||||||||||||||||||||||||||||||||||||||||||||
HMNF | HMN Financial, Inc. | MW | 20.51 | 4,568 | 93.7 | 20.75 | 13.06 | 20.57 | -0.29 | 46.50 | 19.24 | 2.66 | 2.66 | 22.11 | 21.94 | 0.00 | 971,305 | ||||||||||||||||||||||||||||||||||||||||||||||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | SW | 16.50 | 3,126 | 51.6 | 17.00 | 11.13 | 16.50 | 0.00 | 37.50 | 14.27 | 1.50 | 1.50 | 15.47 | 15.47 | 0.00 | 563,260 | ||||||||||||||||||||||||||||||||||||||||||||||||
HVBC | HV Bancorp, Inc. | MA | 19.46 | 2,036 | 39.6 | 20.45 | 11.00 | 19.90 | -2.22 | 59.49 | 13.32 | 3.42 | 3.37 | 18.32 | 18.32 | 0.00 | 595,730 | ||||||||||||||||||||||||||||||||||||||||||||||||
IROQ | IF Bancorp, Inc. | MW | 22.24 | 3,038 | 67.6 | 22.95 | 15.03 | 22.53 | -1.29 | 39.00 | 0.95 | 1.87 | 1.75 | 25.76 | 25.76 | 0.00 | 745,446 | ||||||||||||||||||||||||||||||||||||||||||||||||
KRNY | Kearny Financial Corp. | MA | 13.24 | 77,983 | 1,032.5 | 13.34 | 6.91 | 13.05 | 1.46 | 68.88 | 25.38 | 0.70 | 0.73 | 12.98 | NA | 0.00 | 7,357,994 | ||||||||||||||||||||||||||||||||||||||||||||||||
MSVB | Mid-Southern Bancorp, Inc. | MW | 15.25 | 2,996 | 45.7 | 16.59 | 11.75 | 15.42 | -1.13 | 30.45 | 5.83 | 0.39 | 0.37 | 15.09 | 15.09 | 0.00 | 244,855 | ||||||||||||||||||||||||||||||||||||||||||||||||
NYCB | New York Community Bancorp, Inc. | MA | 11.76 | 465,064 | 5,469.2 | 13.23 | 7.72 | 11.87 | -0.93 | 30.67 | 11.47 | 1.12 | 0.96 | 13.53 | 8.32 | 0.00 | 57,656,892 | ||||||||||||||||||||||||||||||||||||||||||||||||
NFBK | Northfield Bancorp, Inc. (Staten Island, NY) | MA | 17.01 | 51,303 | 872.7 | 17.25 | 8.72 | 16.77 | 1.43 | 72.87 | 37.96 | 1.04 | 1.14 | 14.60 | 13.79 | 0.00 | 5,576,924 | ||||||||||||||||||||||||||||||||||||||||||||||||
NWBI | Northwest Bancshares, Inc. | MA | 14.22 | 127,253 | 1,809.5 | 15.48 | 8.84 | 14.08 | 0.99 | 56.78 | 11.62 | 0.85 | 1.01 | 12.11 | 8.96 | 0.00 | 14,270,356 | ||||||||||||||||||||||||||||||||||||||||||||||||
PCSB | PCSB Financial Corporation | MA | 18.41 | 14,924 | 274.8 | 20.75 | 11.01 | 17.82 | 3.31 | 55.36 | 15.50 | 0.80 | 0.80 | 16.99 | 16.60 | 0.00 | 1,854,674 | ||||||||||||||||||||||||||||||||||||||||||||||||
PVBC | Provident Bancorp, Inc. | NE | 16.70 | 15,699 | 255.7 | 16.77 | 7.21 | 16.58 | 0.72 | 109.27 | 39.17 | 0.84 | 0.92 | 12.61 | 12.61 | 0.00 | 1,551,892 | ||||||||||||||||||||||||||||||||||||||||||||||||
PROV | Provident Financial Holdings, Inc. | WE | 17.38 | 7,517 | 130.6 | 18.23 | 11.40 | 16.14 | 7.68 | 41.19 | 10.63 | 0.78 | 0.78 | 16.73 | 16.73 | 0.00 | 1,189,296 | ||||||||||||||||||||||||||||||||||||||||||||||||
PFS | Provident Financial Services, Inc. | MA | 25.46 | 76,650 | 1,951.5 | 25.62 | 10.99 | 25.26 | 0.79 | 124.91 | 41.76 | 1.75 | 1.79 | 21.17 | 15.19 | 0.00 | 13,130,445 | ||||||||||||||||||||||||||||||||||||||||||||||||
PBIP | Prudential Bancorp, Inc. | MA | 14.02 | 7,944 | 111.4 | 15.86 | 9.53 | 13.88 | 1.01 | 34.42 | 1.23 | 0.95 | NA | 16.40 | 15.59 | 0.00 | 1,204,032 | ||||||||||||||||||||||||||||||||||||||||||||||||
RNDB | Randolph Bancorp, Inc. | NE | 20.66 | 5,017 | 103.7 | 24.70 | 8.96 | 20.75 | -0.43 | 129.56 | -6.35 | 4.82 | 4.90 | 18.80 | 18.80 | 0.00 | 738,188 | ||||||||||||||||||||||||||||||||||||||||||||||||
RVSB | Riverview Bancorp, Inc. | WE | 7.08 | 22,351 | 158.2 | 7.79 | 3.77 | 6.95 | 1.87 | 45.38 | 34.60 | 0.47 | 0.47 | 6.78 | 5.54 | 0.00 | 1,549,158 | ||||||||||||||||||||||||||||||||||||||||||||||||
STXB | Spirit of Texas Bancshares, Inc. | SW | 23.34 | 17,146 | 400.2 | 24.50 | 9.63 | 23.28 | 0.26 | 132.24 | 38.93 | 2.15 | 2.30 | 21.34 | 16.24 | 0.00 | 3,170,212 | ||||||||||||||||||||||||||||||||||||||||||||||||
SBT | Sterling Bancorp, Inc. (Southfield, MI) | MW | 4.53 | 50,009 | 226.5 | 5.95 | 2.61 | 4.52 | 0.22 | 50.00 | -0.22 | -0.12 | -0.12 | 6.44 | 6.44 | 0.00 | 3,694,027 | ||||||||||||||||||||||||||||||||||||||||||||||||
TBNK | Territorial Bancorp Inc. | WE | 25.87 | 9,144 | 236.5 | 30.04 | 19.23 | 25.96 | -0.35 | 14.72 | 7.66 | 2.08 | 1.94 | 26.43 | 26.43 | 0.00 | 2,139,561 | ||||||||||||||||||||||||||||||||||||||||||||||||
TSBK | Timberland Bancorp, Inc. | WE | 29.71 | 8,363 | 248.5 | 30.75 | 15.88 | 29.34 | 1.26 | 85.11 | 22.46 | 3.23 | 3.26 | 23.75 | 21.76 | 0.00 | 1,699,244 | ||||||||||||||||||||||||||||||||||||||||||||||||
TBK | Triumph Bancorp, Inc. | SW | 86.00 | 24,675 | 2,122.1 | 97.49 | 20.63 | 90.89 | -5.38 | 312.67 | 77.14 | 4.02 | 3.39 | 28.90 | 21.34 | 0.00 | 6,099,628 | ||||||||||||||||||||||||||||||||||||||||||||||||
TRST | TrustCo Bank Corp NY | MA | 7.77 | 96,440 | 749.3 | 7.95 | 5.05 | 7.59 | 2.37 | 50.58 | 16.49 | 0.55 | 0.55 | 5.92 | 5.92 | 0.00 | 6,046,457 | ||||||||||||||||||||||||||||||||||||||||||||||||
WSBF | Waterstone Financial, Inc. | MW | 19.98 | 23,860 | 477.3 | 21.41 | 12.40 | 20.04 | -0.30 | 59.84 | 6.16 | 3.99 | 4.08 | 17.07 | 17.04 | 0.00 | 2,198,011 | ||||||||||||||||||||||||||||||||||||||||||||||||
WNEB | Western New England Bancorp, Inc. | NE | 8.58 | 24,577 | 205.1 | 9.24 | 4.79 | 8.32 | 3.13 | 76.91 | 24.53 | 0.60 | 0.61 | 9.07 | 8.44 | 0.00 | 2,463,529 | ||||||||||||||||||||||||||||||||||||||||||||||||
WMPN | William Penn Bancorp | MA | 11.36 | 15,171 | 172.3 | 11.97 | 7.83 | 11.61 | -2.15 | 45.16 | -2.59 | 0.11 | 0.28 | 14.17 | 13.79 | 0.00 | 817,427 | ||||||||||||||||||||||||||||||||||||||||||||||||
WSFS | WSFS Financial Corporation | MA | 53.29 | 47,532 | 2,533.0 | 55.18 | 23.32 | 52.33 | 1.83 | 123.72 | 18.74 | 3.43 | 3.34 | 37.27 | 25.66 | 0.00 | 14,730,452 | ||||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS Financial Corp. | MA | 15.76 | 1,742 | 27.4 | 16.20 | 13.00 | 16.04 | -1.75 | 14.62 | 10.01 | 0.79 | 0.77 | 20.24 | 20.24 | 0.00 | 314,233 | ||||||||||||||||||||||||||||||||||||||||||||||||
MHCs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BCOW | 1895 Bancorp of Wisconsin, Inc. | MW | 14.20 | 4,683 | 66.5 | 16.65 | 7.82 | 13.90 | 2.16 | 70.06 | 42.57 | 0.28 | 0.11 | 12.41 | 12.41 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
BSBK | Bogota Financial Corp. | MA | 10.23 | 13,940 | 142.6 | 10.75 | 7.01 | 9.97 | 2.61 | 30.82 | 14.81 | 0.50 | 0.37 | 9.92 | 9.89 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
CLBK | Columbia Financial, Inc. | MA | 17.98 | 109,051 | 1,960.7 | 18.81 | 10.27 | 18.12 | -0.77 | 39.38 | 15.55 | 0.67 | 0.71 | 9.17 | 8.39 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
FSEA | First Seacoast Bancorp | NE | 9.73 | 5,794 | 56.4 | 10.00 | 5.58 | 9.55 | 1.86 | 75.28 | 9.55 | 0.30 | 0.23 | 9.78 | 9.78 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
GCBC | Greene County Bancorp, Inc. | MA | 25.86 | 8,513 | 220.2 | 29.39 | 20.12 | 25.88 | -0.08 | 26.08 | 1.45 | 2.47 | 2.47 | 16.34 | 16.34 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
KFFB | Kentucky First Federal Bancorp | MW | 7.10 | 8,225 | 58.4 | 8.16 | 5.65 | 7.08 | 0.31 | 16.97 | 12.34 | -1.47 | NA | 6.31 | 6.19 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
LSBK | Lake Shore Bancorp, Inc. | MA | 14.25 | 5,680 | 80.9 | 16.00 | 10.60 | 14.98 | -4.84 | 13.72 | 9.62 | 0.94 | 0.93 | 14.82 | 14.82 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
MGYR | Magyar Bancorp, Inc. | MA | 13.34 | 5,811 | 77.5 | 15.05 | 7.50 | 13.35 | -0.06 | 33.40 | 38.38 | 0.72 | 0.62 | 10.24 | 10.24 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
OFED | Oconee Federal Financial Corp. | SE | 26.58 | 5,578 | 148.2 | 28.00 | 19.05 | 22.95 | 15.82 | 36.31 | 5.06 | 0.71 | 0.69 | 15.66 | 15.17 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
PDLB | PDL Community Bancorp | MA | 11.32 | 16,809 | 190.3 | 13.07 | 7.45 | 11.24 | 0.71 | 43.84 | 7.71 | 0.46 | 0.30 | 9.47 | 9.47 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
PBFS | Pioneer Bancorp, Inc. | MA | 12.20 | 25,061 | 305.7 | 13.34 | 8.02 | 11.89 | 2.61 | 40.72 | 15.42 | 0.25 | 0.18 | 8.80 | 8.45 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
RBKB | Rhinebeck Bancorp, Inc. | MA | 10.26 | 10,741 | 110.2 | 13.10 | 6.26 | 10.26 | 0.00 | 48.48 | 20.00 | 0.76 | 0.75 | 10.68 | 10.43 | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||
TFSL | TFS Financial Corporation | MW | 22.01 | 276,825 | 6,092.9 | 22.27 | 13.32 | 20.00 | 10.05 | 60.19 | 24.84 | 0.32 | NA | 6.07 | 6.04 | 0.00 |
(1) Average of High/Low or Bid/Ask price per share.
(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Excludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.
Source: | S&P Global Market Intelligence and RP® Financial, LC. calculations. The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information. |
RP® Financial, LC.
Exhibit 1B
Weekly Thrift Market Line - Part Two
Prices As of May 14, 2021
Key Financial Ratios | Asset Quality Ratios | Pricing Ratios | Dividend Data (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity/ | Tang Equity/ | Reported Earnings | Core Earnings | NPAs/ | Rsvs/ | Price/ | Price/ | Price/ | Price/ | Price/ | Div/ | Dividend | Payout | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets(1) | Assets(1) | ROA(5) | ROE(5) | ROA(5) | ROE(5) | Assets | NPLs | Earnings | Book | Assets | Tang Book | Core Earnings | Share | Yield | Ratio (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (x) | (%) | (%) | (%) | (x) | ($) | (%) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AFBI | Affinity Bancshares, Inc. | SE | 14.46 | 12.38 | 0.81 | 7.61 | NA | NA | NA | NA | 14.03 | 74.51 | 10.77 | 89.12 | NA | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AX | Axos Financial, Inc. | WE | 9.08 | 8.34 | 1.53 | 16.32 | 1.64 | 17.57 | 0.96 | 101.84 | 13.55 | 204.57 | 18.56 | 224.26 | 12.58 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BYFC | Broadway Financial Corporation | WE | 9.40 | 9.40 | -0.83 | -8.33 | NA | NA | 0.97 | 68.99 | NM | 133.69 | 12.57 | 133.69 | NA | 0.00 | 0.00 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CFFN | Capitol Federal Financial, Inc. | MW | 13.18 | 13.06 | 0.81 | 5.97 | 0.80 | 5.92 | NA | NA | 23.27 | 141.46 | 18.65 | 143.03 | 23.47 | 0.34 | 2.61 | 83.93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CARV | Carver Bancorp, Inc. | MA | 6.76 | 6.76 | -0.74 | -9.86 | -0.85 | -11.28 | 1.95 | 38.65 | NM | 84.00 | 3.56 | 84.00 | NM | 0.00 | 0.00 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CBMB | CBM Bancorp, Inc. | MA | 20.80 | 20.80 | 0.38 | 1.67 | 0.35 | 1.53 | 0.48 | 458.09 | 56.01 | 102.94 | 21.42 | 102.94 | 61.58 | NA | NA | 192.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CNNB | Cincinnati Bancorp, Inc. | MW | 17.78 | 17.72 | 2.01 | 13.50 | 2.02 | 13.55 | 0.54 | 129.69 | 8.31 | 96.33 | 17.13 | 96.71 | 8.27 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ESBK | Elmira Savings Bank | MA | 9.43 | 7.66 | 0.64 | 6.95 | 0.64 | 6.97 | NA | 103.71 | 11.46 | 79.15 | 7.46 | 99.30 | 11.48 | 0.60 | 4.40 | 50.42 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
ESSA | ESSA Bancorp, Inc. | MA | 10.08 | 9.42 | 0.83 | 8.21 | 0.81 | 8.08 | 1.27 | 69.46 | 10.06 | 84.83 | 8.55 | 91.49 | 10.23 | 0.48 | 3.06 | 28.85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FFBW | FFBW, Inc. | MW | 29.33 | NA | 0.66 | 2.27 | NA | NA | 0.46 | 179.51 | 38.97 | 83.11 | 24.38 | 84.55 | NA | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FNWB | First Northwest Bancorp | WE | 10.49 | 10.49 | 0.82 | 6.99 | 0.69 | 5.87 | 0.23 | 356.54 | 12.53 | 95.41 | 10.01 | 95.41 | 14.90 | 0.24 | 1.41 | 16.91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FSBW | FS Bancorp, Inc. | WE | 11.05 | 10.76 | 2.26 | 21.28 | 2.27 | 21.43 | 0.43 | 295.12 | 6.68 | 124.08 | 13.71 | 127.74 | 6.64 | 1.08 | 1.53 | 9.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
GBNY | Generations Bancorp NY, Inc. | MA | 10.98 | 10.60 | 0.57 | 6.71 | 0.25 | 2.92 | NA | NA | 11.55 | 58.20 | 6.39 | 60.54 | 26.02 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HONE | HarborOne Bancorp, Inc. | NE | 15.16 | 13.77 | 1.36 | 8.61 | 1.39 | 8.78 | 1.02 | 119.67 | 13.35 | 119.37 | 18.09 | 133.50 | 13.11 | 0.20 | 1.35 | 12.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HIFS | Hingham Institution for Savings | NE | 10.84 | 10.84 | 2.36 | 23.21 | 1.81 | 17.74 | 0.06 | NM | 9.90 | 203.99 | 22.12 | 203.99 | 12.96 | 1.96 | 0.67 | 8.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HMNF | HMN Financial, Inc. | MW | 10.82 | 10.74 | 1.38 | 12.33 | 1.38 | 12.34 | 0.37 | 342.64 | 7.71 | 92.74 | 10.03 | 93.49 | 7.71 | 0.00 | 0.00 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HFBL | Home Federal Bancorp, Inc. of Louisiana | SW | 9.26 | 9.26 | 0.97 | 10.07 | 0.97 | 10.07 | 0.48 | 304.23 | 11.04 | 106.64 | 9.87 | 106.64 | 11.04 | 0.33 | 2.00 | 22.07 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HVBC | HV Bancorp, Inc. | MA | 6.69 | 6.69 | 1.26 | 19.65 | 1.24 | 19.34 | 0.53 | 62.97 | 5.69 | 106.22 | 7.11 | 106.22 | 5.78 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
IROQ | IF Bancorp, Inc. | MW | 11.20 | 11.20 | 0.79 | 6.87 | 0.74 | 6.45 | 0.20 | 499.29 | 11.89 | 86.32 | 9.67 | 86.32 | 12.68 | 0.30 | 1.35 | 16.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
KRNY | Kearny Financial Corp. | MA | 14.46 | NA | 0.81 | 5.33 | 0.85 | 5.54 | 1.08 | 80.42 | 18.91 | 101.98 | 14.74 | 128.22 | 18.20 | 0.36 | 2.72 | 47.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MSVB | Mid-Southern Bancorp, Inc. | MW | 19.55 | 19.55 | 0.53 | 2.40 | 0.49 | 2.23 | 0.81 | 84.17 | 39.10 | 101.05 | 19.76 | 101.05 | 41.66 | 0.12 | 0.79 | 25.64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NYCB | New York Community Bancorp, Inc. | MA | 11.79 | 7.91 | 1.01 | 8.24 | 0.88 | 7.15 | 0.10 | 411.38 | 10.50 | 86.90 | 9.57 | 141.43 | 12.24 | 0.68 | 5.78 | 60.71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NFBK | Northfield Bancorp, Inc. (Staten Island, NY) | MA | 13.53 | 12.88 | 0.94 | 6.89 | 1.03 | 7.54 | 0.28 | 273.88 | 16.36 | 116.47 | 15.76 | 123.32 | 14.98 | 0.52 | 3.06 | 44.23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
NWBI | Northwest Bancshares, Inc. | MA | 10.80 | 8.22 | 0.78 | 6.96 | 0.92 | 8.25 | 1.72 | 50.80 | 16.73 | 117.40 | 12.68 | 158.65 | 14.10 | 0.80 | 5.63 | 90.59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PCSB | PCSB Financial Corporation | MA | 14.63 | 14.34 | 0.67 | 4.38 | 0.67 | 4.37 | NA | 180.97 | 23.01 | 108.35 | 15.85 | 110.91 | 23.07 | 0.24 | 1.30 | 22.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PVBC | Provident Bancorp, Inc. | NE | 15.09 | 15.09 | 1.05 | 6.31 | 1.14 | 6.88 | NA | NA | 19.88 | 132.48 | 19.99 | 132.48 | 18.24 | 0.16 | 0.96 | 15.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PROV | Provident Financial Holdings, Inc. | WE | 10.57 | 10.57 | 0.49 | 4.67 | 0.49 | 4.67 | 0.84 | 83.42 | 22.28 | 103.89 | 10.98 | 103.89 | 22.28 | 0.56 | 3.22 | 71.79 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PFS | Provident Financial Services, Inc. | MA | 12.55 | 9.33 | 1.08 | 8.43 | 1.08 | 8.47 | 0.83 | 81.68 | 14.55 | 120.25 | 15.09 | 167.59 | 14.23 | 0.92 | 3.61 | 52.57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PBIP | Prudential Bancorp, Inc. | MA | 10.82 | 10.34 | 0.64 | 5.96 | NA | NA | NA | NA | 14.76 | 85.50 | 9.25 | 89.92 | NA | 0.28 | 2.00 | 29.47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RNDB | Randolph Bancorp, Inc. | NE | 13.66 | 13.66 | 3.49 | 26.37 | 3.55 | 26.80 | 1.38 | 65.49 | 4.29 | 109.88 | 15.01 | 109.92 | 4.22 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RVSB | Riverview Bancorp, Inc. | WE | 9.79 | 8.14 | 0.74 | 6.91 | 0.75 | 6.98 | NA | NA | 15.06 | 104.39 | 10.22 | 127.72 | 14.91 | 0.20 | 2.82 | 42.55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
STXB | Spirit of Texas Bancshares, Inc. | SW | 11.54 | 9.03 | 1.25 | 10.57 | 1.34 | 11.32 | 0.31 | 163.60 | 10.86 | 109.35 | 12.62 | 143.74 | 10.14 | 0.36 | 1.54 | 11.63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
SBT | Sterling Bancorp, Inc. (Southfield, MI) | MW | 8.71 | 8.71 | -0.17 | -1.99 | -0.17 | -1.96 | 2.98 | 65.49 | NM | 70.37 | 6.13 | 70.37 | NM | 0.00 | 0.00 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TBNK | Territorial Bancorp Inc. | WE | 11.76 | 11.76 | 0.91 | 7.72 | 0.85 | 7.19 | 0.22 | 69.91 | 12.44 | 97.90 | 11.51 | 97.90 | 13.36 | 0.92 | 3.56 | 49.04 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TSBK | Timberland Bancorp, Inc. | WE | 11.68 | 10.81 | 1.74 | 14.49 | 1.76 | 14.64 | 0.32 | 259.90 | 9.20 | 125.12 | 14.62 | 136.52 | 9.10 | 0.84 | 2.83 | 28.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TBK | Triumph Bancorp, Inc. | SW | 12.53 | 9.74 | 1.80 | 14.81 | 1.52 | 12.57 | 0.54 | 159.15 | 21.39 | 297.62 | 35.34 | 403.00 | 25.37 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TRST | TrustCo Bank Corp NY | MA | 9.44 | 9.44 | 0.93 | 9.49 | 0.93 | 9.49 | 0.55 | 152.73 | 14.08 | 131.23 | 12.39 | 131.35 | 14.08 | 0.27 | 3.51 | 49.37 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
WSBF | Waterstone Financial, Inc. | MW | 19.59 | 19.57 | 4.40 | 24.03 | 4.50 | 24.58 | 0.69 | 119.02 | 5.01 | 117.05 | 22.93 | 117.22 | 4.90 | 0.80 | 4.00 | 23.56 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
WNEB | Western New England Bancorp, Inc. | NE | 9.05 | 8.48 | 0.62 | 6.49 | 0.64 | 6.64 | NA | NA | 14.30 | 94.65 | 8.56 | 101.64 | 14.01 | 0.20 | 2.33 | 33.33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
WMPN | William Penn Bancorp | MA | 26.31 | 25.78 | 0.25 | 1.89 | 0.53 | 3.93 | NA | NA | 99.68 | 80.14 | 21.08 | 82.39 | 40.00 | 0.13 | 1.13 | 113.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
WSFS | WSFS Financial Corporation | MA | 12.01 | 8.58 | 1.23 | 9.23 | 1.19 | 8.95 | 0.34 | 431.41 | 15.54 | 142.97 | 17.18 | 207.70 | 15.97 | 0.52 | 0.98 | 14.29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS Financial Corp. | MA | 12.25 | 12.25 | 0.41 | 3.73 | 0.40 | 3.62 | 0.00 | NM | 19.95 | 77.87 | 9.54 | 77.87 | 20.50 | 0.40 | 2.54 | 50.63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MHCs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BCOW | 1895 Bancorp of Wisconsin, Inc. | MW | 11.61 | 11.61 | 0.28 | 2.42 | 0.11 | 0.93 | 0.33 | 157.24 | 50.71 | 114.40 | 13.28 | 114.40 | 131.22 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
BSBK | Bogota Financial Corp. | MA | 16.95 | 16.92 | 0.85 | 4.99 | 0.63 | 3.70 | NA | NA | 20.46 | 103.14 | 17.49 | 103.43 | 27.44 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CLBK | Columbia Financial, Inc. | MA | 11.06 | 10.21 | 0.81 | 7.03 | 0.86 | 7.46 | NA | NA | 26.84 | 196.01 | 21.68 | 214.26 | 25.29 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
FSEA | First Seacoast Bancorp | NE | 12.70 | 12.70 | 0.37 | 2.95 | 0.29 | 2.28 | 0.01 | NM | 32.43 | 99.46 | 12.63 | 99.46 | 42.40 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
GCBC | Greene County Bancorp, Inc. | MA | 6.49 | 6.49 | 1.16 | 15.81 | 1.16 | 15.81 | 0.25 | 371.37 | 10.47 | 158.29 | 10.27 | 158.29 | 10.47 | 0.48 | 1.86 | 19.43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
KFFB | Kentucky First Federal Bancorp | MW | 15.60 | 15.36 | -3.71 | -22.64 | NA | NA | NA | NA | NM | 112.56 | 17.56 | 114.66 | NA | 0.40 | 5.63 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
LSBK | Lake Shore Bancorp, Inc. | MA | 12.18 | 12.18 | 0.81 | 6.45 | 0.80 | 6.37 | 0.45 | 193.93 | 15.16 | 96.14 | 11.71 | 96.14 | 15.37 | 0.52 | 3.65 | 54.26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MGYR | Magyar Bancorp, Inc. | MA | 7.84 | 7.84 | 0.56 | 7.30 | 0.48 | 6.24 | NA | NA | 18.53 | 130.31 | 10.22 | 130.31 | 21.67 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
OFED | Oconee Federal Financial Corp. | SE | 16.40 | 15.97 | 0.79 | 4.60 | 0.77 | 4.48 | 0.56 | 44.84 | 37.44 | 169.76 | 27.85 | 175.25 | 38.43 | 0.40 | 1.50 | 56.34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PDLB | PDL Community Bancorp | MA | 11.24 | 11.24 | 0.59 | 4.71 | 0.39 | 3.08 | 1.32 | 82.14 | 24.61 | 119.50 | 13.44 | 119.50 | 37.47 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PBFS | Pioneer Bancorp, Inc. | MA | 12.79 | 12.33 | 0.39 | 2.70 | 0.27 | 1.92 | 1.07 | 121.33 | 48.80 | 138.60 | 17.72 | 144.41 | 69.17 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RBKB | Rhinebeck Bancorp, Inc. | MA | 9.93 | 9.72 | 0.72 | 7.05 | 0.72 | 6.97 | 0.53 | 179.12 | 13.50 | 96.11 | 9.54 | 98.38 | 13.65 | NA | NA | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||
TFSL | TFS Financial Corporation | MW | 11.78 | 11.72 | 0.60 | 5.27 | NA | NA | 1.02 | 45.84 | 68.78 | 362.58 | 42.70 | 364.66 | NA | 1.12 | 5.09 | 350.00 |
(1) Average of High/Low or Bid/Ask price per share.
(2) Or since offering price if converted of first listed in the past 52 weeks. Percent change figures are actual year-to-date and are not annualized.
(3) EPS (earnings per share) is based on actual trailing 12 month data and is not shown on a pro forma basis.
(4) Exludes intangibles (such as goodwill, value of core deposits, etc.).
(5) ROA (return on assets) and ROE (return on equity) are indicated ratios based on trailing 12 month common earnings and average common equity and total assets balances.
(6) Annualized based on last regular quarterly cash dividend announcement.
(7) Indicated dividend as a percent of trailing 12 month earnings.
(8) Excluded from averages due to actual or rumored acquisition activities or unusual operating characteristics.
(9) For MHC institutions, market value reflects share price multiplied by public (non-MHC) shares.
Source: S&P Global Market Intelligence and RP® Financial, LC. calculations.The information provided in this table has been obtained from sources we believe are reliable, but we cannot guarantee the accuracy or completeness of such information.
Copyright (c) 2021 by RP® Financial, LC.
EXHIBIT 2
Pro Forma Analysis Sheet
Exhibit 2 |
PRO FORMA ANALYSIS SHEET |
St. Landry Homestead Federal Savings Bank |
Prices as of May 14, 2021 |
Peer Group | Louisiana Companies | All Publicly-Traded | |||||||||||||||||||||||||||||
Price Multiple | Symbol | Subject (1) | Average | Median | Average | Median | Average | Median | |||||||||||||||||||||||
Price-earnings ratio (x) | P/E | NM | x | 10.37 | x | 11.04 | x | 11.04 | x | 11.04 | x | 13.43 | x | 13.35 | x | ||||||||||||||||
Price-core earnings ratio (x) | P/Core | NM | x | 10.57 | x | 11.04 | x | 11.04 | x | 11.04 | x | 13.96 | x | 13.36 | x | ||||||||||||||||
Price-book ratio (%) | = | P/B | 47.57 | % | 94.95 | % | 98.69 | % | 106.64 | % | 106.64 | % | 112.15 | % | 94.14 | % | |||||||||||||||
Price-tangible book ratio (%) | = | P/TB | 47.57 | % | 97.15 | % | 100.18 | % | 106.64 | % | 106.64 | % | 124.47 | % | 108.28 | % | |||||||||||||||
Price-assets ratio (%) | = | P/A | 14.79 | % | 14.13 | % | 12.44 | % | 9.87 | % | 9.87 | % | 14.07 | % | 12.65 | % |
Valuation Parameters | |||||||||||||
Pre-Conversion Earnings (Y) | $ | (707,000 | ) | ESOP Stock Purchases (E) | 8.00 | % | (5) | ||||||
Pre-Conversion Earnings (CY) | $ | 688,000 | Cost of ESOP Borrowings (S) | 0.00 | % | (4) | |||||||
Pre-Conversion Book Value (B) | $ | 50,357,000 | ESOP Amortization (T) | 20.00 | years | ||||||||
Pre-Conv. Tang. Book Val. (TB) | $ | 50,357,000 | RRP Amount (M) | 4.00 | % | ||||||||
Pre-Conversion Assets (A) | $ | 236,742,000 | RRP Vesting (N) | 5.00 | years (5) | ||||||||
Reinvestment Rate (2)(R) | 0.92 | % | Foundation (F) | 0.00 | % | ||||||||
Est. Conversion Expenses (3)(X) | 3.72 | % | Tax Benefit (Z) | 0 | |||||||||
Tax Rate (TAX) | 21.00 | % | Percentage Sold (PCT) | 100.00 | % | ||||||||
Louisiana Shares/Franchise Tax | $ | 329,000 | Option (O1) | 10.00 | % | (6) | |||||||
Estimated Option Value (O2) | 35.50 | % | (6) | ||||||||||
Option vesting (O3) | 5.00 | (6) | |||||||||||
Option pct taxable (O4) | 25.00 | % | (6) |
Calculation of Pro Forma Value After Conversion | ||||||
1. V= | P/E * (Y) | V= | NM | |||
1 - P/E * PCT * ((1-X-E-M-F)*R*(1-TAX) - (1-TAX)*E/T - (1-TAX)*M/N) - (1-(TAX*O4))*(O1*O2)/O3) | ||||||
2. V= | P/Core * (Y) | V= | NM | |||
1 - P/core * PCT * ((1-X-E-M-F)*R*(1-TAX) - (1-TAX)*E/T - (1-TAX)*M/N) - (1-(TAX*O4))*(O1*O2)/O3) | ||||||
3. V= | P/B * (B+Z) | V= | $ | 40,000,000 | ||
1 - P/B * PCT * (1-X-E-M-F) | ||||||
4. V= | P/TB * (TB+Z) | V= | $ | 40,000,000 | ||
1 - P/TB * PCT * (1-X-E-M-F) | ||||||
5. V= | P/A * (A+Z) | V= | $ | 40,000,000 | ||
1 - P/A * PCT * (1-X-E-M-F) |
Shares | Aggregate | |||||||||||||||||||||||
Shares Issued | Price Per | Gross Offering | Issued To | Total Shares | Market Value | |||||||||||||||||||
Conclusion | To the Public | Share | Proceeds | Foundation | Issued | of Shares Issued | ||||||||||||||||||
Supermaximum | 5,290,000 | 10.00 | $ | 52,900,000 | 0 | 5,290,000 | $ | 52,900,000 | ||||||||||||||||
Maximum | 4,600,000 | 10.00 | 46,000,000 | 0 | 4,600,000 | 46,000,000 | ||||||||||||||||||
Midpoint | 4,000,000 | 10.00 | 40,000,000 | 0 | 4,000,000 | 40,000,000 | ||||||||||||||||||
Minimum | 3,400,000 | 10.00 | 34,000,000 | 0 | 3,400,000 | 34,000,000 |
(1) | Pricing ratios shown reflect the midpoint value. |
(2) | Net return reflects a reinvestment rate of 0.92 percent and a tax rate of 21.0 percent. |
(3) | Offering expenses shown at estimated midpoint value. |
(4) | No cost is applicable since holding company will fund the ESOP loan. |
(5) | ESOP and MRP amortize over 20 years and 5 years, respectively; amortization expenses tax effected at 21.0 percent. |
(6) | 10 percent option plan with an estimated Black-Scholes valuation of 35.50 percent of the exercise price, including a 5 year vesting with 25 percent of the options (granted to directors) tax effected at 21.0 percent. |
EXHIBIT 3
Pro Forma Effect of Conversion Proceeds
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
St. Landry Homestead FSB
At the Minimum
1. | Pro Forma Market Capitalization | $ | 34,000,000 | ||
Less: Foundation Shares | - | ||||
2. | Offering Proceeds | $ | 34,000,000 | ||
Less: Estimated Offering Expenses | 1,437,795 | ||||
Net Conversion Proceeds | $ | 32,562,205 | |||
3. | Estimated Additional Income from Conversion Proceeds | ||||
Net Conversion Proceeds | $ | 32,562,205 | |||
Less: Cash Contribution to Foundation | 0 | ||||
Less: Non-Cash Stock Purchases (1) | 4,080,000 | ||||
Net Proceeds Reinvested | $ | 28,482,205 | |||
Estimated net incremental rate of return | 0.73 | % | |||
Reinvestment Income | $ | 207,009 | |||
Less: Louisiana Shares/Franchise Tax | 311,000 | ||||
Less: Estimated cost of ESOP borrowings (2) | 0 | ||||
Less: Amortization of ESOP borrowings (3) | 107,440 | ||||
Less: Amortization of Options (4) | 228,727 | ||||
Less: Recognition Plan Vesting (5) | 214,880 | ||||
Net Earnings Impact | $ | (655,038 | ) |
Net | |||||||||||||
Before | Earnings | After | |||||||||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |||||||||
12 Months ended March 31, 2021(reported) | $ | (707,000 | ) | $ | (655,038 | ) | $ | (1,362,038 | ) | ||||
12 Months ended March 31, 2021 (core) | $ | 688,000 | $ | (655,038 | ) | $ | 32,962 |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 50,357,000 | $ | 28,482,205 | $ | 0 | $ | 78,839,205 | |||||||||
March 31, 2021 (Tangible) | $ | 50,357,000 | $ | 28,482,205 | $ | 0 | $ | 78,839,205 |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 236,742,000 | $ | 28,482,205 | $ | 0 | $ | 265,224,205 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 21.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 21.0 percent.
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
St. Landry Homestead FSB
At the Midpoint
1. | Pro Forma Market Capitalization | $ | 40,000,000 | ||
Less: Foundation Shares | - | ||||
2. | Offering Proceeds | $ | 40,000,000 | ||
Less: Estimated Offering Expenses | 1,487,475 | ||||
Net Conversion Proceeds | $ | 38,512,525 | |||
3. | Estimated Additional Income from Conversion Proceeds | ||||
Net Conversion Proceeds | $ | 38,512,525 | |||
Less: Cash Contribution to Foundation | 0 | ||||
Less: Non-Cash Stock Purchases (1) | 4,800,000 | ||||
Net Proceeds Reinvested | $ | 33,712,525 | |||
Estimated net incremental rate of return | 0.73 | % | |||
Reinvestment Income | $ | 245,023 | |||
Less: Louisiana Shares/Franchise Tax | 329,000 | ||||
Less: Estimated cost of ESOP borrowings (2) | 0 | ||||
Less: Amortization of ESOP borrowings (3) | 126,400 | ||||
Less: Amortization of Options (4) | 269,090 | ||||
Less: Recognition Plan Vesting (5) | 252,800 | ||||
Net Earnings Impact | $ | (732,267 | ) |
Net | |||||||||||||
Before | Earnings | After | |||||||||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |||||||||
12 Months ended March 31, 2021(reported) | $ | (707,000 | ) | $ | (732,267 | ) | $ | (1,439,267 | ) | ||||
12 Months ended March 31, 2021 (core) | $ | 688,000 | $ | (732,267 | ) | $ | (44,267 | ) |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 50,357,000 | $ | 33,712,525 | $ | 0 | $ | 84,069,525 | |||||||||
March 31, 2021 (Tangible) | $ | 50,357,000 | $ | 33,712,525 | $ | 0 | $ | 84,069,525 | |||||||||
Before | Net Cash | Tax Benefit | After | ||||||||||||||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 236,742,000 | $ | 33,712,525 | $ | 0 | $ | 270,454,525 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 21.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 21.0 percent.
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
St. Landry Homestead FSB
At the Maximum Value
1. | Pro Forma Market Capitalization | $ | 46,000,000 | ||
Less: Foundation Shares | - | ||||
2. | Offering Proceeds | $ | 46,000,000 | ||
Less: Estimated Offering Expenses | 1,537,155 | ||||
Net Conversion Proceeds | $ | 44,462,845 | |||
3. | Estimated Additional Income from Conversion Proceeds | ||||
Net Conversion Proceeds | $ | 44,462,845 | |||
Less: Cash Contribution to Foundation | 0 | ||||
Less: Non-Cash Stock Purchases (1) | 5,520,000 | ||||
Net Proceeds Reinvested | $ | 38,942,845 | |||
Estimated net incremental rate of return | 0.73 | % | |||
Reinvestment Income | $ | 283,037 | |||
Less: Louisiana Shares/Franchise Tax | 348,000 | ||||
Less: Estimated cost of ESOP borrowings (2) | 0 | ||||
Less: Amortization of ESOP borrowings (3) | 145,360 | ||||
Less: Amortization of Options (4) | 309,454 | ||||
Less: Recognition Plan Vesting (5) | 290,720 | ||||
Net Earnings Impact | $ | (810,497 | ) |
Net | |||||||||||||
Before | Earnings | After | |||||||||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |||||||||
12 Months ended March 31, 2021(reported) | $ | (707,000 | ) | $ | (810,497 | ) | $ | (1,517,497 | ) | ||||
12 Months ended March 31, 2021 (core) | $ | 688,000 | $ | (810,497 | ) | $ | (122,497 | ) |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 50,357,000 | $ | 38,942,845 | $ | 0 | $ | 89,299,845 | |||||||||
March 31, 2021 (Tangible) | $ | 50,357,000 | $ | 38,942,845 | $ | 0 | $ | 89,299,845 |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 236,742,000 | $ | 38,942,845 | $ | 0 | $ | 275,684,845 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 21.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 21.0 percent.
Exhibit 3
PRO FORMA EFFECT OF CONVERSION PROCEEDS
St. Landry Homestead FSB
At the Supermaximum Value
1. | Pro Forma Market Capitalization | $ | 52,900,000 | ||
Less: Foundation Shares | - | ||||
2. | Offering Proceeds | $ | 52,900,000 | ||
Less: Estimated Offering Expenses | 1,594,287 | ||||
Net Conversion Proceeds | $ | 51,305,713 | |||
3. | Estimated Additional Income from Conversion Proceeds | ||||
Net Conversion Proceeds | $ | 51,305,713 | |||
Less: Cash Contribution to Foundation | 0 | ||||
Less: Non-Cash Stock Purchases (1) | 6,348,000 | ||||
Net Proceeds Reinvested | $ | 44,957,713 | |||
Estimated net incremental rate of return | 0.73 | % | |||
Reinvestment Income | $ | 326,753 | |||
Less: Louisiana Shares/Franchise Tax | 369,000 | ||||
Less: Estimated cost of ESOP borrowings (2) | 0 | ||||
Less: Amortization of ESOP borrowings (3) | 167,164 | ||||
Less: Amortization of Options (4) | 355,872 | ||||
Less: Recognition Plan Vesting (5) | 334,328 | ||||
Net Earnings Impact | $ | (899,611 | ) |
Net | |||||||||||||
Before | Earnings | After | |||||||||||
4. | Pro Forma Earnings | Conversion | Increase | Conversion | |||||||||
12 Months ended March 31, 2021(reported) | $ | (707,000 | ) | $ | (899,611 | ) | $ | (1,606,611 | ) | ||||
12 Months ended March 31, 2021 (core) | $ | 688,000 | $ | (899,611 | ) | $ | (211,611 | ) |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
5. | Pro Forma Net Worth | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 50,357,000 | $ | 44,957,713 | $ | 0 | $ | 95,314,713 | |||||||||
March 31, 2021 (Tangible) | $ | 50,357,000 | $ | 44,957,713 | $ | 0 | $ | 95,314,713 |
Before | Net Cash | Tax Benefit | After | ||||||||||||||
6. | Pro Forma Assets | Conversion | Proceeds | Of Contribution | Conversion | ||||||||||||
March 31, 2021 | $ | 236,742,000 | $ | 44,957,713 | $ | 0 | $ | 281,699,713 |
(1) Includes ESOP and RRP stock purchases equal to 8.0 and 4.0 percent of total shares issued, respectively.
(2) ESOP stock purchases are internally financed by a loan from the holding company.
(3) ESOP borrowings are amortized over 20 years, amortization expense is tax-effected at a 21.0 percent rate.
(4) Option valuation based on Black-Scholes model, 5 year vesting, and assumes 25 percent is taxable.
(5) RRP is amortized over 5 years, and amortization expense is tax effected at 21.0 percent.
EXHIBIT 4
Firm Qualifications Statement
FIRM QUALIFICATION STATEMENT
RP® Financial (“RP®) provides financial and management consulting, merger advisory and valuation services to the financial services industry nationwide. We offer a broad array of services, high quality and prompt service, hands-on involvement by principals and senior staff, careful structuring of strategic initiatives and sophisticated valuation and other analyses consistent with industry practices and regulatory requirements. Our staff maintains extensive background in financial and management consulting, valuation and investment banking. Our clients include commercial banks, thrifts, credit unions, mortgage companies, insurance companies and other financial services companies.
STRATEGIC PLANNING SERVICES
RP®’s strategic planning services are designed to provide effective feasible plans with quantifiable results. We analyze strategic options to enhance shareholder value, achieve regulatory approval or realize other objectives. Such services involve conducting situation analyses; establishing mission/vision statements, developing strategic goals and objectives; and identifying strategies to enhance franchise and/or market value, capital management, earnings enhancement, operational matters and organizational issues. Strategic recommendations typically focus on: capital formation and management, asset/liability targets, profitability, return on equity and stock pricing. Our proprietary financial simulation models provide the basis for evaluating the impact of various strategies and assessing their feasibility and compatibility with regulations.
MERGER ADVISORY SERVICES
RP®’s merger advisory services include targeting potential buyers and sellers, assessing acquisition merit, conducting due diligence, negotiating and structuring merger transactions, preparing merger business plans and financial simulations, rendering fairness opinions, preparing mark-to-market analyses, valuing intangible assets and supporting the implementation of post-acquisition strategies. Our merger advisory services involve transactions of financially healthy companies and failed bank deals. RP® is also expert in de novo charters and shelf charters. Through financial simulations, comprehensive data bases, valuation proficiency and regulatory familiarity, RP®’s merger advisory services center on enhancing shareholder returns.
VALUATION SERVICES
RP®’s extensive valuation practice includes bank and thrift mergers, thrift mutual-to-stock conversions, goodwill impairment, insurance company demutualizations, ESOPs, subsidiary companies, merger accounting and other purposes. We are highly experienced in performing appraisals which conform to regulatory guidelines and appraisal standards. RP® is the nation’s leading valuation firm for thrift mutual-to-stock conversions, with appraised values ranging up to $4 billion.
OTHER CONSULTING SERVICES
RP® offers other consulting services including evaluating the impact of regulatory changes (TARP, etc.), branching and diversification strategies, feasibility studies and special research. We assist banks/thrifts in preparing CRA plans and evaluating wealth management activities on a de novo or merger basis. Our other consulting services are facilitated by proprietary valuation and financial simulation models.
KEY PERSONNEL (Years of Relevant Experience & Contact Information)
Ronald S. Riggins, Managing Director (40) | (703) 647-6543 | rriggins@rpfinancial.com |
William E. Pommerening, Managing Director (36) | (703) 647-6546 | wpommerening@rpfinancial.com |
Gregory E. Dunn, Director (37) | (703) 647-6548 | gdunn@rpfinancial.com |
James P. Hennessey, Director (33) | (703) 647-6544 | jhennessey@rpfinancial.com |
James J. Oren, Director (33) | (703) 647-6549 | joren@rpfinancial.com |
Washington Headquarters | |
1311-A Dolley Madison Boulevard | Telephone: (703) 528-1700 |
Suite 2A | Fax No.: (703) 528-1788 |
McLean, VA 22101 | Toll-Free No.: (866) 723-0594 |
www.rpfinancial.com | E-Mail: mail@rpfinancial.com |