Exhibit 99.3
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
Cullman Bancorp, Inc.
Cullman, Alabama
As Of:
February 12, 2021
Prepared By:
Keller & Company, Inc.
555 Metro Place North
Suite 524
Dublin, Ohio 43017
(614) 766-1426
KELLER & COMPANY
KELLER & COMPANY, INC.
FINANCIAL INSTITUTION CONSULTANTS
555 METRO PLACE NORTH
SUITE 524
DUBLIN, OHIO 43017
(614) 766-1426 (614) 766-1459 FAX
March 5, 2021
The Boards of Directors
Cullman Savings Bank
Cullman Bancorp, Inc.
216 Second Avenue S.W.
Cullman, Alabama 35055
To the Boards:
We hereby submit an independent appraisal (“Appraisal”) of the pro forma market value of the common stock to be issued by the new Cullman Bancorp, Inc. (the “Corporation”) in connection with the second stage stock conversion of Cullman Savings Bank, MHC (the “MHC”) from the mutual to the stock form of ownership. The MHC currently owns 57.3 percent of the stock of Cullman Savings Bank (the “Bank”), which was impacted as a result of the inclusion of the assets held by the MHC of $2,634,151. The Corporation’s public shareholders own 40.7 percent of the stock and Cullman Savings Bank Foundation owns 2.1 percent of the current stock. The exchange ratios established by the Corporation as applied to the value established herein are 1.8094 shares, 2.1288 shares, 2.4481 shares, and 2.8153 shares for each share of the Corporation’s common stock at the minimum, midpoint, maximum and super maximum, respectively, of the valuation range. This appraisal was prepared and provided to the Corporation in accordance with regulatory appraisal requirements.
Keller & Company, Inc. is an independent, financial institution consulting firm that serves both thrift institutions and banks. The firm is a full-service consulting organization, as described in more detail in Exhibit A, specializing in business and strategic plans, stock valuations, conversion and reorganization appraisals, market studies and fairness opinions for thrift institutions and banks. The firm has affirmed its independence in this transaction with the preparation of its Affidavit of Independence, a copy of which is included as Exhibit C.
Our appraisal is based on the assumption that the data and material provided to us by the Corporation, Cullman Savings Bank and the independent auditors, Crowe LLP, are both accurate and complete. We did not verify the financial statements provided to us, nor did we conduct independent valuations of the Bank’s assets and liabilities. We have also used information from other public sources, but we cannot assure the accuracy of such material.
Boards of Directors
Cullman Savings Bank
Cullman Bancorp, Inc.
March 5, 2021
Page 2
In the preparation of this appraisal, we held discussions with the management of the Corporation and the Bank, with the law firm of Luse Gorman, PC, the Bank’s conversion counsel, and with Crowe, LLP. Further, we analyzed and viewed the Corporation’s local economy and primary market area. This valuation must not be considered to be a recommendation as to the purchase of stock in the Corporation, and we can provide no guarantee or assurance that any person who purchases shares of the Corporation’s stock will be able to later sell such shares at a price equivalent to the price designated in this appraisal.
Our valuation will be updated as required and will give consideration to any new developments in the Corporation’s operation that have an impact on operations or financial condition. Further, we will give consideration to any changes in general market conditions and to specific changes in the market for publicly traded thrift institutions. Based on the material impact of any such changes on the pro forma market value of the Corporation as determined by this firm, we will make necessary adjustments to the Corporation’s appraised value in such appraisal update.
It is our opinion that as of February 12, 2021, the pro forma market value or appraised value of Cullman Bancorp, Inc. was $56,000,000 at the midpoint of the valuation range, with a public offering of $32,598,720 or 3,259,872 shares at $10 per share for a 58.2 percent of the total value of $56,000,000 or 5,600,000 shares at $10 per share, with $22,281,280 or 2,228,128 representing exchange shares and 112,000 representing new foundation shares.
The pro forma valuation range of the Corporation is from a minimum of $47,600,000 to a super maximum of $74,060,000, representing public offering ranges of $27,708,910 at the minimum to a super maximum of $43,111,810, representing 2,770,891 shares, and 4,311,181 shares at $10 per share at the minimum and the super maximum, respectively. The pro forma appraised value of the Corporation as of February 12, 2021, is $56,000,000 at the midpoint with a midpoint public offering of $32,598,720.
Very truly yours,
KELLER & COMPANY, INC.
CONVERSION VALUATION APPRAISAL REPORT
Prepared for:
Cullman Bancorp, Inc.
Cullman, Alabama
As Of:
February 12, 2021
TABLE OF CONTENTS
PAGE | ||||||
INTRODUCTION | 1 | |||||
I. | Description of Cullman Savings Bank | |||||
General | 4 | |||||
Performance Overview | 8 | |||||
Income and Expense | 10 | |||||
Yields and Costs | 15 | |||||
Interest Rate Sensitivity | 16 | |||||
Lending Activities | 18 | |||||
Nonperforming Assets | 21 | |||||
Investments | 24 | |||||
Deposit Activities | 25 | |||||
Borrowings | 25 | |||||
Subsidiaries | 26 | |||||
Office Properties | 26 | |||||
Management | 26 | |||||
II. | Description of Primary Market Area | 27 | ||||
III. | Comparable Group Selection | |||||
Introduction | 32 | |||||
General Parameters | ||||||
Merger/Acquisition | 33 | |||||
Trading Exchange | 34 | |||||
IPO Date | 34 | |||||
Geographic Location | 35 | |||||
Asset Size | 35 | |||||
Balance Sheet Parameters | ||||||
Introduction | 36 | |||||
Cash and Investments to Assets | 37 | |||||
Mortgage-Backed Securities to Assets | 37 | |||||
One- to Four-Family Loans to Assets | 37 | |||||
Total Net Loans to Assets | 38 | |||||
Total Net Loans and Mortgage-Backed Securities to Assets | 38 | |||||
Borrowed Funds to Assets | 39 | |||||
Equity to Assets | 39 | |||||
Performance Parameters | ||||||
Introduction | 41 |
TABLE OF CONTENTS (cont.)
PAGE | ||||||
III. | Comparable Group Selection (cont.) | |||||
Performance Parameters (cont.) | ||||||
Return on Average Assets | 41 | |||||
Return on Average Equity | 42 | |||||
Net Interest Margin | 42 | |||||
Operating Expenses to Assets | 43 | |||||
Noninterest Income to Assets | 43 | |||||
Asset Quality Parameters | ||||||
Introduction | 43 | |||||
Nonperforming Assets to Total Assets | 44 | |||||
Repossessed Assets to Assets | 44 | |||||
Loan Loss Reserve to Assets | 45 | |||||
The Comparable Group | 45 | |||||
IV. | Analysis of Financial Performance | 46 | ||||
V. | Market Value Adjustments | |||||
Earnings Performance | 49 | |||||
Market Area | 54 | |||||
Financial Condition | 55 | |||||
Asset, Loan and Deposit Growth | 58 | |||||
Dividend Payments | 59 | |||||
Subscription Interest | 60 | |||||
Liquidity of Stock | 61 | |||||
Management | 62 | |||||
Marketing of the Issue | 63 | |||||
VI. | Valuation Methods | |||||
Introduction | 64 | |||||
Valuation Methods | 64 | |||||
Valuation Range | 65 | |||||
Price to Book Value Method | 65 | |||||
Price to Core Earnings Method | 66 | |||||
Price to Assets Method | 67 | |||||
Valuation Conclusion | 68 |
LIST OF EXHIBITS
NUMERICAL | PAGE | |||||
EXHIBITS | ||||||
1 | Balance Sheets - At December 31, 2020 | 70 | ||||
2 | Balance Sheets - At December 31, 2016 through 2019 | 71 | ||||
3 | Statement of Income for the Year Ended December 31, 2020 | 72 | ||||
4 | Statements of Income for the Years Ended December 31, 2016 through 2019 | 73 | ||||
5 | Selected Financial Information | 74 | ||||
6 | Income and Expense Trends | 75 | ||||
7 | Normalized Earnings Trend | 76 | ||||
8 | Performance Indicators | 77 | ||||
9 | Volume/Rate Analysis | 78 | ||||
10 | Yield and Cost Trends | 79 | ||||
11 | Net Portfolio Value | 80 | ||||
12 | Loan Portfolio Composition | 81 | ||||
13 | Loan Maturity Schedule | 82 | ||||
14 | Delinquent Loans | 83 | ||||
15 | Nonperforming Assets | 84 | ||||
16 | Classified Assets | 85 | ||||
17 | Allowance for Loan Losses | 86 | ||||
18 | Investment Portfolio Composition | 87 | ||||
19 | Mix of Deposits | 88 | ||||
20 | Certificates of Deposit by Maturity | 89 | ||||
21 | Management of the Bank | 90 | ||||
22 | Key Demographic Data and Trends | 91 | ||||
23 | Key Housing Data | 92 | ||||
24 | Major Sources of Employment | 93 | ||||
25 | Unemployment Rates | 94 | ||||
26 | Market Share of Deposits | 95 | ||||
27 | National Interest Rates by Quarter | 96 |
LIST OF EXHIBITS (cont.)
NUMERICAL | PAGE | |||||
EXHIBITS | ||||||
28 | Thrift Share Data and Pricing Ratios | 97 | ||||
29 | Key Financial Data and Ratios | 102 | ||||
30 | Recently Converted Thrift Institutions | 107 | ||||
31 | Acquisitions and Pending Acquisitions | 108 | ||||
32 | Comparable Group Selection - Balance Sheets Parameters | 109 | ||||
33 | Comparable Group Selection - Operating Performance and Asset Quality Parameters | 112 | ||||
34 | Final Comparable Group - Balance Sheet Ratios | 115 | ||||
35 | Final Comparable Group - Operating Performance and Asset Quality Ratios | 116 | ||||
36 | Comparable Group Characteristics and Balance Sheet Totals | 117 | ||||
37 | Balance Sheet - Asset Composition Most Recent Quarter | 118 | ||||
38 | Balance Sheet - Liability and Equity Most Recent Quarter | 119 | ||||
39 | Income and Expense Comparison - Trailing Four Quarters | 120 | ||||
40 | Income and Expense Comparison as a Percent of Average Assets | 121 | ||||
41 | Yields, Costs and Earnings Ratios - Trailing Four Quarters | 122 | ||||
42 | Reserves and Supplemental Data | 123 | ||||
43 | Comparable Group Market, Pricing and Financial Ratios | 124 | ||||
44 | Valuation Summary | 125 | ||||
45 | Valuation Analysis and Conclusions | 126 | ||||
46 | Pro Forma Effects of Conversion Proceeds - Minimum | 127 | ||||
47 | Pro Forma Effects of Conversion Proceeds - Midpoint | 128 | ||||
48 | Pro Forma Effects of Conversion Proceeds - Maximum | 129 | ||||
49 | Pro Forma Effects of Conversion Proceeds - Maximum, as adjusted | 130 | ||||
50 | Summary of Valuation Premium or Discount | 131 |
ALPHABETICAL EXHIBITS | PAGE | |||||
A | Background and Qualifications | 132 | ||||
B | RB 20 Certification | 136 | ||||
C | Affidavit of Independence | 137 |
INTRODUCTION
Keller & Company, Inc. is an independent appraisal firm for financial institutions and has prepared this Conversion Valuation Appraisal Report (“Report”) to provide the pro forma market value of the to-be-issued common stock of the new Cullman Bancorp, Inc. (the “Corporation”), a newly formed Maryland corporation and the new holding company of Cullman Savings Bank (“Cullman” or the “Bank”), Cullman, Alabama, in connection with the conversion of Cullman Savings Bank, MHC. The shares of common stock to be issued represent the majority interest in Cullman Savings Bank, MHC, which was formed in 2009. Cullman is a subsidiary of the Corporation. Under the Plan of Conversion, Cullman Savings Bank, MHC will cease to exist, with Cullman becoming a wholly owned subsidiary of the Corporation. The existing shares of stock in Old Cullman Bancorp, Inc. (“Old Cullman”), now named Cullman Bancorp, Inc., will be exchanged for shares of stock in the Corporation based on their current appraised value as determined in this Report.
The Application is being filed with the Office of the Comptroller of the Currency (“OCC”), the Federal Reserve Board (“FRB”) and the Securities and Exchange Commission (“SEC”). In accordance with the conversion, there will be an issuance of 59.4 percent of the Corporation’s stock, representing the ownership of Cullman Savings Bank, MHC, in the Corporation, after determining the dilution impact of the balance of assets held by Cullman Savings Bank, MHC of $2,634,000 and including the 2.0 percent of stock to be contributed to the Cullman Foundation, resulting in a 57.4 percent public offering based on the midpoint valuation and 2.0 percent of the shares to be contributed to the foundation. Excluding the impact of the dilution of the mutual holding company assets, the Cullman Savings Bank, MHC, had an ownership interest of 57.3 percent with public stockholders owning 40.7 percent and the foundation owning 2.0 percent.
Such Application for Conversion has been reviewed by us, including the Prospectus and related documents, and discussed with the Bank’s management and the Bank’s conversion counsel, Luse Gorman, PC, Washington, D.C.
1
Introduction (cont.)
This conversion appraisal was prepared based on regulatory guidelines entitled “Guidelines for Appraisal Reports for the Valuation of Savings Institutions Converting from the Mutual to Stock Form of Organization,” and the Revised Guidelines for Appraisal Reports and represents a full appraisal report. The Report provides detailed exhibits based on the Revised Guidelines and a discussion on each of the factors that need to be considered. Our valuation will be updated in accordance with the Revised Guidelines and will consider any changes in market conditions for thrift institutions.
The pro forma market value is defined as the price at which the stock of the Corporation after conversion would change hands between a typical willing buyer and a typical willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, and with both parties having reasonable knowledge of relevant facts in an arm’s-length transaction. The appraisal assumes the Bank is a going concern and that the shares issued by the Corporation in the conversion are sold in noncontrol blocks.
As part of our appraisal procedure, we have reviewed the financial statements for the five fiscal years ended December 31, 2016, 2017, 2018, 2019 and 2020, and discussed them with Cullman’s management and with Cullman’s independent auditors, Crowe, LLP. We have also discussed and reviewed with management other financial matters and have reviewed internal projections. We have reviewed the Corporation’s preliminary Form S-1 and the related filings and discussed them with management and with the Bank’s conversion counsel.
To gain insight into the Bank’s local market condition, we have become familiar with Cullman’s market area and have traveled the market. The Bank has four offices, including its main office and three branches.
We have studied the economic and demographic characteristics of the primary retail market area, and analyzed the Bank’s primary retail market area relative to Alabama and the
2
Introduction (cont.)
United States. We have also examined the competitive market within which Cullman operates, giving consideration to the area’s numerous financial institution offices, mortgage banking offices, and credit union offices and other key market area characteristics, both positive and negative.
We have given consideration to the market conditions for securities in general and for publicly traded thrift stocks in particular. We have examined the performance of selected publicly traded thrift institutions and compared the performance of Cullman to those selected institutions.
Our valuation is not intended to represent and must not be interpreted to be a recommendation of any kind as to the desirability of purchasing the to-be-outstanding shares of common stock of the Corporation. Giving consideration to the fact that this appraisal is based on numerous factors that can change over time, we can provide no assurance that any person who purchases the stock of the Corporation in this mutual-to-stock conversion will subsequently be able to sell such shares at prices similar to the pro forma market value of the Corporation as determined in this conversion appraisal.
3
I. | DESCRIPTION OF CULLMAN SAVINGS BANK |
GENERAL
Cullman Savings Bank (“Cullman”) was organized in 1887 as a state-chartered mutual savings and loan association. The Bank changed its name to Cullman Savings Bank in 1994. In 2009, the Bank formed its mutual holding company, Cullman Savings Bank, MHC, and completed a minority stock offering as well as formed its holding company, Cullman Bancorp, Inc. In 2021, a new holding company was organized, Cullman Bancorp, Inc., a Maryland corporation, and will become the holding company of Cullman Savings Bank. The Corporation plans to complete a stock offering and complete the issuance of 2.0 percent of the total shares to the new foundation, with this combination equal to all the shares owned by Cullman Savings Bank, MHC, and resulting in its elimination.
Cullman conducts its business from its main office in Cullman, Alabama, and its two branches in Cullman with one other branch located in Hanceville, Alabama. The Bank’s primary retail market is focused on Cullman County where all of its offices are located.
Cullman’s deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (“FDIC”) in the Bank Insurance Fund (“BIF”). The Bank is also subject to certain reserve requirements of the Board of Governors of the Federal Reserve Bank (the “FRB”). Cullman is a member of the Federal Home Loan Bank (the “FHLB”) of Atlanta and is regulated by the OCC. As of December 31, 2020, the Corporation had assets of $331,396,000 deposits of $216,963,000 and equity of $56,875,000.
Cullman has been principally engaged in the business of serving the financial needs of the public in its local communities and throughout its primary market area as a community-oriented institution. Cullman has been actively involved in the origination of one- to four-family mortgage loans. One- to four-family mortgage loan originations represented 49.0 percent of gross loans at December 31, 2020. At December 31, 2019, a slightly larger 50.7 percent of the Bank’s gross loans consisted of residential real estate loans on one- to four-family dwellings,
4
General (cont.)
with the primary sources of funds being retail deposits from residents in its local communities and to a lesser extent, FHLB advances. The Bank is also an originator of multi-family loans, commercial real estate loans, construction loans, commercial business loans and consumer loans. Consumer loans include home equity loans, automobile loans, and other secured and unsecured personal loans. The Bank also had a small level of Payroll Protection Program (“PPP”) loans.
The Bank had cash and investments of $74.8 million, or 22.6 percent of its assets, excluding FHLB stock which totaled $2,541,000 or 0.8 percent of assets at December 31, 2020. The Bank had $4.4 million of its investments in mortgage-backed and related securities representing 1.3 percent of assets. Deposits, principal payments, FHLB advances and equity have been the primary sources of funds for the Bank’s lending and investment activities.
The total amount of stock to be sold in the second stage offering will be $32,598,720 or 3,259,872 shares at $10 per share, based on the midpoint. The net conversion proceeds will be $31.1 million, net of conversion expenses of approximately $1,502,000. The actual cash proceeds to the Bank of $15.5 million will represent 50.0 percent of the net conversion proceeds. The ESOP will represent 8.0 percent of the new shares or 269,750 shares at $10 per share, representing $2,697,498 or 4.82 percent of the total value. The Bank’s net proceeds will be used to fund new loans, to eliminate subordinated debt, and to invest in securities following their initial deployment to short term investments. The Bank may also use the proceeds to expand services, expand operations or acquire other financial service organizations, diversify into other businesses, or for any other purposes authorized by law. The Corporation will use its proceeds to fund the ESOP and to invest in short-term deposits.
The Bank has experienced a moderate overall deposit increase over the past three fiscal years, with deposits increasing 14.2 percent from December 31, 2018, to December 31, 2020, or an average of 7.1 percent per year. From December 31, 2018, to December 31, 2019, deposits decreased by $1.1 million or 0.6 percent. For the year ended December 31, 2020, deposits increased a strong $28.1 million or 14.9 percent.
5
General (cont.)
The Bank has experienced an increase in its loan portfolio during two of the past three years with a decrease in the most recent fiscal year and has focused on monitoring its asset quality position, on controlling its net interest margin and operating expenses and on maintaining a reasonable equity to assets ratio. Equity to assets increased from 17.28 percent of assets at December 31, 2018, to 17.91 percent at December 31, 2019, and then decreased slightly to 17.16 percent at December 31, 2020, impacted by the Bank’s stronger increase in assets.
The primary lending strategy of Cullman has been to focus on the origination of one-to four-family mortgage loans, commercial real estate loans including farm loans, commercial loans, construction loans, home equity loans, and multi-family loans, with less activity in consumer loans.
The Bank’s share of one- to four-family mortgage loans has decreased from 50.7 percent of gross loans at December 31, 2019, to 49.0 percent at December 31, 2020. Commercial real estate loans increased from 29.5 percent of loans to 33.2 percent of loans, and commercial business loans decreased from 11.4 percent of loans to 8.7 percent of loans. Multi-family loans increased from 1.8 percent of loans to 2.1 percent from December 31, 2019, to December 31, 2020. All types of real estate loans, including home equity loans, as a group increased slightly from 87.5 percent of gross loans at December 31, 2019, to 88.1 percent at December 31, 2020. The increase in real estate loans was offset by the Bank’s decreases in consumer and commercial loans. The Bank’s share of consumer and other related loans decreased from 1.1 percent to 1.0 percent during the same time period, and commercial business loans decreased from 11.4 percent to 8.7 percent of gross loans. The Bank also had 2.2 percent of loans in PPP loans.
Management’s internal strategy has also included continued emphasis on maintaining an adequate and appropriate level of allowance for loan losses relative to loans and nonperforming assets in recognition of the more stringent requirements within the industry to establish and maintain a higher level of general valuation allowances and also in recognition of the Bank’s overall growth in loans. At December 31, 2018, Cullman had $2,218,000 in its loan loss
6
General (cont.)
allowance or 0.89 percent of gross loans, and 1,618.98 percent of nonperforming loans with the loan loss allowance increasing to $2,361,000 and representing a higher 1.01 percent of gross loans and a lower 92.05 percent of nonperforming loans at December 31, 2020.
The basis of earnings for the Bank has been interest income from loans and investments with the net interest margin being the key determinant of net earnings with an emphasis on strengthening noninterest income and reducing noninterest expenses. With a primary dependence on net interest margin for earnings, current management will focus on striving to maintain a reasonable net interest margin during this lower interest rate environment without undertaking excessive credit risk combined with controlling the Bank’s interest risk position and continuing to control noninterest expenses, monitoring nonperforming assets, and strengthening noninterest income.
7
PERFORMANCE OVERVIEW
The financial position of Cullman at fiscal year end December 31, 2016, through December 31, 2020, is shown in Exhibits 1 and 2, and the earnings performance of Cullman for the fiscal years ended December 31, 2016, through 2020, is shown in Exhibits 3 and 4. Exhibit 5 provides selected financial data at December 31, 2016 through December 31, 2020. Cullman has experienced an overall increase in its loan portfolio and asset base, along with an overall increase in cash and investments and deposits from December 31, 2016, through December 31, 2020. The most recent trend for the Bank from December 31, 2019, to December 31, 2020, was a strong increase in assets, a minimal increase in cash and investments, a moderate decrease in loans and a moderate increase in deposits.
With regard to the Bank’s more recent historical financial condition, Cullman has experienced a strong increase in assets from December 31, 2018, through December 31, 2020, with a modest decrease in loans, a strong increase in deposits and a moderate increase in the dollar level of equity.
The Bank witnessed an increase in assets of $38.0 million or 13.0 percent for the period of December 31, 2018, to December 31, 2020, representing an average annual increase of 6.5percent. Over the past two fiscal periods, the Bank experienced its largest dollar increase in assets of $33.3 million in 2020, due primarily to a $46.0 million increase in cash and investments, reduced by a $16.8 million decrease in loans. During the Bank’s prior fiscal year of 2018, assets increased $9.3 million or 3.3 percent, compared to an increase of $10.1 million or 3.5 percent in 2017.
Cullman’s net loan portfolio, which includes mortgage loans and nonmortgage loans, decreased from $243.1 million at December 31, 2018, to $232.0 million at December 31, 2020, and represented a total decrease of $11.1 million, or 4.6 percent. The average annual decrease during that period was 2.3 percent. For the year ended December 31, 2019, net loans increased $5.7 million or 2.4 percent to $248.8 million, compared to a decrease of $16.8 million or 6.8 percent to $232.0 million for the year ended December 31, 2020.
8
Performance Overview (cont.)
Cullman has obtained funds through deposits, FHLB advances and other borrowings with a moderate and steady use of FHLB advances which totaled $53.5 million at December 31, 2020, with no other borrowings. The Bank’s competitive rates for deposits in its local market in conjunction with its focus on service have been the sources for competing for retail deposits. Deposits decreased $1.1 million or 0.6 percent from December 31, 2018, to December 31, 2019, and then increased $28.1 million or 14.9 percent, to $217.0 million at December 31, 2020, from December 31, 2019.
The Bank witnessed a modest increase in its dollar equity level from December 31, 2017, to December 31, 2020. At December 31, 2017, the Bank had an equity level of $46.8 million, representing an 16.48 percent equity to assets ratio and increased to $50.7 million at December 31, 2018, representing a higher 17.28 percent equity to assets ratio. At December 31, 2019, equity was a higher $53.4 million and a higher 17.91 percent of assets, and then increased in dollars to $56.9 million but was a slightly lower 17.16 percent of assets at December 31, 2020, due to stronger growth in assets.
The overall increase in the equity to assets ratio from December 31, 2016, to December 31, 2020, was impacted by the Bank’s moderate overall increase in assets. The dollar level of equity increased $10.3 million or 22.1 percent from December 31, 2016, to December 31, 2020, representing an average annual increase of 5.5 percent.
9
INCOME AND EXPENSE
Exhibit 6 presents selected operating data for Cullman. This table provides key income and expense figures in dollars for the years ended December 31, 2016, 2017, 2018, 2019 and 2020.
Cullman witnessed a modest overall increase in its dollar level of interest income from 2016 to 2020. Interest income was $12.1 million in 2016 and a higher $14.3 million in 2019. Interest income then decreased $160,000 in the year ended December 31, 2020, to $14.2 million, compared to an increase of $659,000 in 2019.
The Bank’s interest expense also experienced a modest overall increase from 2016 to 2020. Interest expense increased from $2,194,000 in 2016 to $2,508,000 in 2018, representing an increase of $314,000 or 14.3 percent. Interest expense then increased by $610,000 or 24.3 percent in 2019 to $3,118,000 In the year ended December 31, 2020, interest expense was a lower $2,867,000. Such overall increase in interest income from 2016 through December 31, 2020, notwithstanding the smaller increase in interest expense, resulted in a modest dollar increase in annual net interest income but a decrease in net interest margin. Net interest income increased from $9,881,000 in the year ended December 31, 2016, to $11,165,000 in 2018, then increased slightly to $11,214,000 in 2019 and then increased slightly to $11,305,000 in the year ended December 31, 2020.
The Bank has made provisions for loan losses in four of the past five years of 2016 through 2020. The amounts of those provisions were determined in recognition of the Bank’s levels of loans, nonperforming assets, charge-offs and repossessed assets. The loan loss provisions were $294,000 in 2016, zero in 2017, $83,000 in 2018, $55,000 in 2019, and $152,000 in 2020. The impact of these loan loss provisions has been to provide Cullman with a general valuation allowance of $2,361,000 at December 31, 2020, or 1.01 percent of gross loans and 92.1 percent of nonperforming loans.
10
Income and Expense (cont.)
Total other income or noninterest income indicated a minimal decrease in dollars from 2016 to 2020. Noninterest income was $1,524,000 or 0.56 percent of assets in 2016 and a higher $1,624,000 in 2018 or a lesser 0.55 percent of assets. In the year ended December 31, 2019, noninterest income was a lower $1,456,000 and represented 0.49 percent of assets. In the year ended December 31, 2020, noninterest income was a lower $1,449,000 or 0.44 percent of assets. Noninterest income consists primarily of service charges, gains on the sale of loans, BOLI income and other income.
The Bank’s general and administrative expenses or noninterest expenses increased from $6.94 million for the year of 2016 to $7.84 million for the year ended December 31, 2018, representing an increase of 13.0 percent, then increased to $7.86 million for the year ended December 31, 2019, or a 0.2 percent increase, and then increased to $8.10 for the year ended December 31, 2020. On a percent of average assets basis, operating expenses increased from 2.68 percent of average assets for the year ended December 31, 2016, to 2.72 percent for the year ended December 31, 2018, then decreased to 2.66 percent for the year ended December 31, 2019, and then decreased to 2.57 percent for the year ended December 31, 2020.
The net earnings position of Cullman has indicated modest volatility from 2016 through 2020. The annual net income (loss) figures for the years of 2016, 2017, 2018, 2019 and 2020 were $2,735,000, $2,580,000, $3,839,000, $3,734,000 and $3,546,000, representing returns on average assets of 1.06 percent, 0.92 percent, 1.33 percent, 1.26 percent for fiscal years 2016, 2017, 2018 and 2019, respectively, and 1.13 percent for the year ended December 31, 2020.
Exhibit 7 provides the Bank’s normalized earnings or core earnings for the twelve months ended December 31, 2020. The Bank’s normalized earnings typically eliminate any nonrecurring income and expense items. There were no adjustments, resulting in the normalized income being equal to actual earnings for the year ended December 31, 2020, and equal to $3,546,000.
11
Income and Expense (cont.)
The key performance indicators comprised of selected performance ratios, asset quality ratios and capital ratios are shown in Exhibit 8 to reflect the results of performance. The Bank’s return on average assets changed from 1.06 percent in 2016, to 0.92 percent in 2017, to 1.33 percent in 2018, to 1.26 percent in 2019, and then to 1.13 percent in the year ended
December 31, 2020.
The Bank’s net interest rate spread increased from 4.05 percent in 2016 to 4.06 percent in 2018, then decreased to 3.74 percent in 2019, and then decreased to 3.54 percent in the year ended December 31, 2020. The Bank’s net interest margin indicated a similar trend, increasing from 4.15 percent in 2016 to 4.16 percent in 2018, then decreased to 3.98 percent in 2019, and decreased to 3.75 percent in the year ended December 31, 2020. Cullman’s net interest rate spread increased 16 basis points from 2016 to 2018, then decreased 4 basis points in 2019 and then decreased 40 basis points in 2020. The Bank’s net interest margin indicated a similar overall trend, increasing 1 basis point from 2016 to 2018, then decreasing 10 basis points from 2018 to 2019 and then decreasing 22 basis points in 2020.
The Bank’s return on average equity increased from 2016 to 2019, and then decreased in 2020. The return on average equity increased from 6.03 percent in 2016, to 7.87 percent in 2018, then decreased to 7.17 percent in 2019, and then decreased to 6.43 percent in 2020.
Cullman’s ratio of average interest-earning assets to interest-bearing liabilities decreased slightly from 111.0 percent at December 31, 2016, to 110.0 percent at December 31, 2018, then increased to 112.0 percent at December 31, 2019, and then increased to 118.0 percent at December 31, 2020. The Bank’s overall increase in its ratio of interest-earning assets to interest-bearing liabilities is primarily the result of the Bank’s modest rise in investments, including interest-bearing deposits.
The Bank’s ratio of noninterest expenses to average assets increased from 2.68 percent in 2016 to 2.72 percent in 2018, then decreased to 2.66 percent in 2019, and then decreased to
12
Income and Expense (cont.)
2.57 percent in 2020. Another key noninterest expense ratio reflecting efficiency of operation is the ratio of noninterest expenses to noninterest income plus net interest income referred to as the “efficiency ratio.” The industry norm is 55.2 percent for all thrifts and 68.7 percent for thrifts with assets of $100.0 million to $1.0 billion, with the lower the ratio indicating higher efficiency. The Bank has been characterized with a modestly higher level of efficiency historically reflected in its lower efficiency ratio, which decreased from 62.45 percent in 2016 to 61.62 percent in 2018, then increased to 62.33 percent in 2019, and then increased to 64.27 percent in the year ended December 31, 2020.
Earnings performance can be affected by an institution’s asset quality position. The ratio of nonperforming loans to total loans is a key indicator of asset quality. Cullman witnessed a decrease in its nonperforming loans ratio from December 31, 2016, to December 31, 2019, but a rise in 2020, and the ratio is modestly above the industry norm. Nonperforming loans, by definition, consist of loans delinquent 90 days or more, troubled debt restructurings that have not been performing for at least three months, and nonaccruing loans. Cullman’s nonperforming loans consisted of nonaccrual loans with no loans accruing but past due, and no nonaccruing troubled debt restructured loans. The ratio of nonperforming loans to total loans was 1.09 percent at December 31, 2020, rising from 0.05 percent at December 31, 2019, and decreasing from 1.23 percent at December 31, 2016.
Two other indicators of asset quality are the Bank’s ratios of allowance for loan losses to total loans and also to nonperforming loans. The Bank’s allowance for loan losses was 0.94 percent of loans at December 31, 2016, decreased to 0.88 percent at December 31, 2018, then increased to 0.89 percent of loans at December 31, 2019, and then increased to 1.01 percent at December 31, 2020. As a percentage of nonperforming loans, Cullman’s allowance for loan losses to nonperforming loans was 76.70 percent at December 31, 2016, a higher 448.76 percent at December 31, 2018, a higher 1,618.98 percent at December 31, 2019, and then a lower 92.05 percent at December 31, 2020.
13
Income and Expense (cont.)
Exhibit 9 provides the changes in net interest income due to rate and volume changes for the fiscal year ended December 31, 2020. For the year ended December 31, 2020, net interest income increased $90,000, due to a decrease in interest expense of $251,000, reduced by a $161,000 decrease in interest income. The decrease in interest income was due to a decrease due to rate of $147,000, accented by a decrease due to volume of $14,000. The decrease in interest expense was due to a $319,000 decrease due to rate, reduced by a $118,000 increase due to volume.
14
YIELDS AND COSTS
The overview of yield and cost trends for the years ended December 31, 2019 and 2020, can be seen in Exhibit 10, which offers a summary of key yields on interest-earning assets and costs of interest-bearing liabilities.
Cullman’s weighted average yield on its loan portfolio, including any PPP loans, increased 13 basis points from fiscal year 2019 to 2020, from 5.41 percent to 5.54 percent. The yield on investment securities decreased from 2.73 percent to 2.59 percent from 2019 to 2020 or 14 basis points. The yield on fed funds decreased from 1.98 percent to 0.14 percent from 2019 to 2020, or 184 basis points. The combined weighted average yield on all interest-earning assets decreased 38 basis points to 4.70 percent from fiscal year 2019 to 2020.
Cullman’s weighted average cost of interest-bearing liabilities decreased 19 basis points to 1.16 percent from fiscal year 2019 to 2020, which was less than the Bank’s 38 basis point decrease in yield, resulting in a decrease in the Bank’s net interest rate spread of 19 basis points from 3.73 percent to 3.54 percent from 2019 to 2020. The Bank’s net interest margin decreased from 3.98 percent in 2019 to 3.75 percent in fiscal year 2020, representing a decrease of 23 basis points.
15
INTEREST RATE SENSITIVITY
Cullman has monitored its interest rate sensitivity position and focused on maintaining a reasonable level of interest rate risk exposure by recognizing its higher shares of fixed-rate residential mortgage loans, commercial real estate loans and commercial loans. Cullman recognizes the thrift industry’s historically higher interest rate risk exposure, which caused a negative impact on earnings and net portfolio value in the past as a result of significant fluctuations in interest rates, specifically rising rates in the past. Such exposure was due to the disparate rate of maturity and/or repricing of assets relative to liabilities commonly referred to as an institution’s “gap.” The larger an institution’s gap, the greater the risk (interest rate risk) of earnings loss due to a decrease in net interest margin and a decrease in economic value of equity or portfolio loss. In response to the potential impact of interest rate volatility and negative earnings impact, many institutions have taken steps to reduce their gap position. This frequently results in a decline in the institution’s net interest margin and overall earnings performance. Cullman has responded to the interest rate sensitivity issue by increasing its shares of adjustable-rate one to four family loans and commercial real estate loans.
The Bank measures its interest rate risk through the use of its economic value of equity (“EVE”) of the expected cash flows from interest-earning assets and interest-bearing liabilities and any off-balance sheets contracts. The EVE for the Bank is calculated on a quarterly basis by an outside firm, showing the Bank’s EVE to asset ratio, the dollar change in EVE, and the change in the EVE ratio for the Bank under rising and falling interest rates. Such changes in EVE ratio under changing rates are reflective of the Bank’s interest rate risk exposure.
There are numerous factors which have a measurable influence on interest rate sensitivity in addition to changing interest rates. Such key factors to consider when analyzing interest rate sensitivity include the loan payoff schedule, accelerated principal payments, sale of fixed-rate loans, deposit maturities, interest rate caps on adjustable-rate mortgage loans and deposit withdrawals.
16
Interest Rate Sensitivity (cont.)
Exhibit 11 provides the Bank’s EVE levels and ratios as of December 31, 2020, based on the most recent calculations and reflects the changes in the Bank’s EVE levels under rising and declining interest rates.
The Bank’s change in its EVE level at December 31, 2020, based on a rise in interest rates of 100 basis points was a 1.18 percent decrease, representing a dollar decrease in equity value of $702,000. In contrast, based on a decline in interest rates of 100 basis points, the Bank’s NPV level was estimated to decrease 3.01 percent or $1,787,000 at December 31, 2020. The Bank’s exposure increases to a 3.45 percent decrease under a 200 basis point rise in rates, representing a dollar decrease in equity of $2,047,000. The Bank’s exposure is not reasonably measurable based on a 200 basis point decrease in interest rates, due to the currently low level of interest rates.
The Bank’s post shock NPV ratio based on a 200 basis point rise in interest rates is 17.66 percent and indicates a 21 basis point increase from its 17.45 percent based on no change in interest rates.
The Bank is aware of its interest rate risk exposure under rapidly rising rates and falling rates. Due to Cullman’s recognition of the need to control its interest rate exposure, the Bank has maintained a strong equity to asset position. The Bank plans to increase its lending activity in the future and review increasing its share of adjustable-rate loans. The Bank will also continue to focus on controlling its higher EVE ratio, recognizing the planned second stage offering will strengthen the Bank’s equity level and EVE ratio, based on any change in interest rates.
17
LENDING ACTIVITIES
Cullman has focused its lending activity on the origination of conventional mortgage loans secured by one- to four-family dwellings, commercial real estate, commercial business loans, home equity loans, manufactured home loans, automobile loans and other consumer loans. The Bank has also been an originator of construction loans and multi-family loans to a much lesser extent. Exhibit 12 provides a summary of Cullman’s loan portfolio by loan type at December 31, 2019, and at December 31, 2020.
The primary loan type for Cullman has been residential loans secured by one- to four-family dwellings, representing a moderate 49.0 percent of the Bank’s gross loans as of December 31, 2020. This share of loans has seen a minimal decrease from 50.7 percent at December 31, 2019. The second largest real estate loan type as of December 31, 2020, was commercial real estate loans, which comprised a relatively strong 33.2 percent of gross loans at December 31, 2020, compared to 29.5 percent as of December 31, 2019. The third largest loan type was commercial business loans, which comprised a modest 8.7 percent of gross loans at December 31, 2020, compared to a larger 11.4 percent at December 31, 2019. The fourth largest loan category was construction loans, which represented 2.4 percent of gross loans at December 31, 2020, compared to a larger 3.5 percent at December 31, 2019. These four real estate loan categories represented a strong 93.3 percent of gross loans at December 31, 2020, compared to a larger 95.1 percent of gross loans at December 31, 2019.
The Bank had a minimal 1.5 percent of loans in home equity loans at December 31, 2020, down from 2.0 percent at December 31, 2019. The consumer loan category, excluding home equity loans, represented a minimal 1.0 percent of gross loans compared to 1.1 percent at December 31, 2019. The Bank’s consumer loans include automobile loans, savings account loans, and other secured and unsecured loans. The Bank also had a modest 2.2 percent of loans in PPP loans in 2020. The overall mix of loans has witnessed a modest change from December 31, 2019, to December 31, 2020, with the Bank having decreased its shares of one- to four-family loans, construction loans, and commercial loans, reduced by an increase in its share of commercial real estate loans.
18
Lending Activities (cont.)
The emphasis of Cullman’s lending activity is the origination of conventional mortgage loans secured by one- to four-family residences. Such residences are located primarily in the Bank’s retail market area of Cullman County. At December 31, 2020, 49.0 percent of Cullman’s gross loans consisted of loans secured by one- to four-family residential properties, both owner-occupied and nonowner-occupied, excluding construction loans.
The Bank’s one- to four-family mortgage loans remain outstanding for shorter periods than their contractual terms, because borrowers have the right to refinance or prepay. These mortgage loans contain “due on sale” clauses which permit the Bank to accelerate the indebtedness of the loan upon transfer of ownership of the mortgage property.
The Bank’s primary key mortgage loan product is a fixed-rate mortgage loan with Cullman’s fixed-rate mortgage loans having terms of 15 years to 30 years. Fixed-rate mortgage loans have a maximum term of 30 years. The Bank’s fixed-rate mortgage loans normally conform to secondary market underwriting standards. The Bank also originates conforming “jumbo loans” residential mortgage loans.
The normal loan-to-value ratio for conventional mortgage loans to purchase or refinance one-to four-family dwellings generally does not exceed 89.99 percent at Cullman, even though the Bank is permitted to make loans above the 95 percent loan-to-value ratio. While the Bank does make loans up to 89.99 percent of loan-to-value, the Bank requires private mortgage insurance for the amount in excess of the 80.0 percent loan-to-value ratio for fixed-rate loans and adjustable-rate loans. Mortgage loans originated by the Bank include due-on-sale clauses enabling the Bank to adjust rates on fixed-rate loans in the event the borrower transfers ownership.
19
Lending Activities (cont.)
Cullman has also been an originator of balloon and fixed-rate commercial real estate loans and multi-family loans in the past and will continue to make multi-family and commercial real estate loans. The balloon loans have a term of five years with an amortization period of 20 years. The Bank had a total of $77.8 million in commercial real estate loans and $4.8 million in multi-family loans at December 31, 2020, or a combined 35.2 percent of gross loans, compared to a lower 31.4 percent of gross loans at December 31, 2019.
The major portion of commercial real estate and multi-family loans are secured by small retail establishments, office buildings, restaurants, and other mixed use properties used for business, and light industrial properties. Most of the multi-family and commercial real estate loans are fully amortizing with a term of up to 20 years. The maximum loan-to-value ratio is normally 85.0 percent for commercial real estate loans and 80.0 percent for multi-family loans.
Cullman is also an originator of commercial business loans, which represented a modest 8.7 percent of loans at December 31, 2020, and totaled $20.3 million. The Bank had $28.6 million in commercial business loans at December 31, 2019, or 11.4 percent of loans. These loans are normally fixed-rate and generally for a one-year term.
Cullman also offers consumer loans, with these loans totaling $2.3 million at December 31, 2020, and representing 1.0 percent of gross loans, excluding home equity loans. Consumer loans primarily include automobile loans, deposit loans, and other secured and unsecured loans.
Exhibit 13 provides a loan maturity schedule and breakdown and a summary of Cullman’s fixed- and adjustable-rate loans, indicating a majority of adjustable-rate loans. At December 31, 2020, 96.0 percent of the Bank’s loans due after December 31, 2021, were fixed-rate and 4.0 percent were adjustable-rate. At December 31, 2020, the Bank had 35.1 percent of its loans due on or before December 31, 2025, or in five years or less. The Bank had a larger 64.9 percent of its loans with a maturity of more than five years.
20
NONPERFORMING ASSETS
Cullman understands asset quality risk and the direct relationship of such risk to delinquent loans and nonperforming assets, including real estate owned. The quality of assets has been a key concern to financial institutions throughout many regions of the country. A number of financial institutions have been confronted with higher levels of nonperforming assets over the past few years and have been forced to recognize significant losses, setting aside major valuation allowances.
A sharp increase in nonperforming assets has often been related to specific regions of the country and has frequently been associated with higher risk loans, including commercial real estate loans and multi-family loans and nonowner-occupied single-family loans. Cullman has a currently lower level of nonperforming assets, with nonperforming assets decreasing slightly in 2020.
Exhibit 14 provides a summary of Cullman’s delinquent loans at December 31, 2019, and at December 31, 2020, indicating a modest decrease in the dollar amount of delinquent loans from December 31, 2019, to December 31, 2020. The Bank had $2,573,000 in loans delinquent 30 to 89 days at December 31, 2020. Loans delinquent 90 days or more totaled $104,000 at December 31, 2020, with these two categories representing 1.15 percent of gross loans, with most of them one- to four-family real estate loans followed by commercial real estate loans. At December 31, 2019, delinquent loans of 30 to 89 days totaled $2,736,000 or 1.10 percent of gross loans, and loans delinquent 90 days or more totaled $85,000 or 0.03 percent of gross loans for a combined total of $2,821,000 and a lower share of 1.13 percent of gross loans, compared to a lower $2,677,000 and a higher 1.15 percent of gross loans at December 31, 2020.
It is normal procedure for Cullman’s board to review loans delinquent 90 days or more on a monthly basis, to assess their collectibility and possibly commence foreclosure proceedings. When a loan is delinquent 60 days, the Bank sends a late notice to the borrower and also contact the borrower by a phone call. After 90 days delinquency, a demand letter is sent.
21
Nonperforming Assets (cont.)
When the loan becomes delinquent 90 days, the Bank considers the loan in default and it is placed on nonaccrual status. A decision as to whether and when to initiate foreclosure proceedings is based on such factors as the amount of the outstanding loan, the extent of the delinquency and the borrower’s ability and willingness to cooperate in curing the delinquency. The Bank generally initiates foreclosure when a loan has been delinquent 90 days and no workout agreement has been reached.
Exhibit 15 provides a summary of Cullman’s nonperforming assets at December 31, 2019, and at December 31, 2020. Nonperforming assets, by definition, include loans 90 days or more past due, nonaccruing loans, troubled debt restructurings that have not performed, and repossessed assets. The Bank carried a higher dollar level of nonperforming assets at December 31, 2020, relative to December 31, 2019. Cullman’s level of nonperforming assets was $521,000 at December 31, 2019, and a higher $566,000 at December 31, 2020, which represented 0.17 percent of assets in 2019 and 0.17 percent December 31, 2020. The Bank’s nonperforming assets included $50,000 in nonaccrual loans, $85,000 in loans 90 days or more past due and $386,000 in real estate owned for a total of $521,000 at December 31, 2019. At December 31, 2020, nonperforming assets were a higher $566,000 or a similar 0.17 percent of assets due to the rise in assets and included $18,000 in nonaccrual loans, $434,000 in real estate owned, with $114,000 in loans 90 days or more past due.
Cullman’s levels of nonperforming assets were lower than its levels of classified assets. The Bank’s ratios of classified assets to assets, excluding special mention assets, were 0.87 percent of assets at December 31, 2019, and a higher 2.55 percent at December 31, 2020 (reference Exhibit 16). The Bank’s classified assets consisted of $8,439,000 in substandard assets, with no assets classified as doubtful and no assets classified as loss for a total of $8,439,000 at December 31, 2020. The Bank had $2,593,000 in assets classified as substandard and no assets classified as loss or doubtful at December 31, 2019.
22
Nonperforming Assets (cont.)
Exhibit 17 shows Cullman’s allowance for loan losses at December 31, 2019 and at December 31, 2020, indicating the activity and the resultant balances. Cullman has witnessed a modest increase in its balance of allowance for loan losses from $2,218,000 at December 31, 2019, to $2,361,000 at December 31, 2020. The Bank had provisions for loan losses of $55,000 in 2019, and $152,000 in 2020.
The Bank had total charge-offs of $(1,000) in 2019, and $20,000 in 2020, with total recoveries of $1,000 in 2019 and ($10,000) in 2020. The Bank’s ratio of allowance for loan losses to gross loans was 0.88 percent at December 31, 2019, and 1.01 percent at December 31, 2020. Allowance for loan losses to nonperforming loans was 1,642.96 percent at December 31, 2019, and 1,788.64 percent at December 31, 2020.
23
INVESTMENTS
The investment and securities portfolio, excluding certificates of deposit, has been comprised of municipal securities, interest-bearing deposits, mortgage-backed securities, mutual funds and large cap equity mutual funds. Exhibit 18 provides a summary of Cullman’s investment portfolio at December 31, 2020, excluding FHLB stock and interest-bearing deposits. Investment securities totaled $18.9 million at December 31, 2020, based on fair value. The Bank had $4.4 million in mortgage-backed securities. Mortgage-backed securities represented the second largest category of the Bank’s investments at December 31, 2020, preceded by municipal securities.
The key component of investments at December 31, 2020, was municipal securities, totaling $14.5 million and representing 76.6 percent of total investments, excluding FHLB stock. The Bank had $2,541,000 in FHLB stock at December 31, 2020. The weighted average yield on investment securities was 2.59 percent for the year ended December 31, 2020, and a higher 2.73 percent in 2019.
24
DEPOSIT ACTIVITIES
The mix of deposits by amount at December 31, 2019, and 2020, is provided in Exhibit 19. There has been a strong increase in total deposits and a modest change in the deposit mix during this period. Total deposits have increased from $188.9 million at December 31, 2019, to $217.0 million at December 31, 2020, representing an increase of $28.1 million or 14.9 percent. Certificates of deposit have decreased from $93.9 million at December 31, 2019, to $86.0 million at December 31, 2020, representing a decrease of $7.9 million or 8.4 percent, while savings, transaction and MMDA accounts have increased $35.9 million from $95.0 million at December 31, 2019, to $130.9 million at December 31, 2020, or 37.8 percent.
Exhibit 20 provides a breakdown of the Bank’s certificates of deposits in amounts of $250,000 or more by maturity. The largest category of these certificates based on maturity is certificates with a maturity of over twelve months, which represented a strong 53.3 percent of these certificates followed by certificates with a maturity of six months to one year, which represented a moderate 17.8 percent of certificates.
BORROWINGS
Cullman has made moderate use of FHLB advances in each of the years ended December 31, 2016, 2017, 2018, 2019, and 2020. The Bank had total FHLB advances of $53.5 million at December 31, 2020, with a weighted cost of 1.74 percent during the period and a balance of a similar $51.5 million at December 31, 2019, with a weighted cost of 2.41 percent during the period.
25
SUBSIDIARIES
Cullman Bancorp has no wholly owned subsidiaries nor does Cullman.
OFFICE PROPERTIES
Cullman had four offices at December 31, 2020, its main office and two branch offices in Cullman, with one additional branch in Hancerville, Alabama. The Bank owns all of its offices. At December 31, 2020, the Bank’s total investment in fixed assets, based on depreciated cost, was $8.6 million or 2.60 percent of assets.
MANAGEMENT
The president and chief executive officer of Cullman is John A. Riley, III, who is also a director. Mr. Riley became president and chief executive officer in May 2006, having previously served the Bank as a loan officer since 1993. Ms. T’aira Ugarkovich is executive vice president and director of lending of the Bank. Previously, Ms. Ugarkovich was the Bank’s chief credit officer. Ms. Ugarkovich is a 2017 graduate from Alabama Banking School. Ms. Ugarkovich has 13 years of banking experience. Prior to working at Cullman Savings Bank, Ms. Ugarkovich was a credit officer for four years and treasury management officer for two years at Progress Bank. Ms. Katrina Stephens is senior vice president and is the chief financial officer, positions she has held since 2015. Ms. Stephens is a 2018 graduate from Alabama Banking School. Ms. Stephens was previously a senior level internal auditor at Regions Bank, where she began working in 2011. Prior to Regions, Ms. Stephens worked as a senior external auditor at Pricewaterhouse Coopers, where she begin working in 2007.
26
II. | DESCRIPTION OF PRIMARY MARKET AREA |
Cullman’s market area is focused on Cullman County, Alabama. Exhibit 22 shows the trends in population, households and income for Cullman County, Alabama and the United States. Cullman County’s population increased by a minimal 3.8 percent from 2000 to 2010, while Alabama’s and the United States’ population levels increased by 7.5 percent and 9.7 percent, respectively, during the same time period. Through 2025, population is projected to increase by 6.7 percent in Cullman County, by 6.8 percent in Alabama and by 9.5 percent in the United States.
More important is the trend in households. Cullman County experienced a 3.8 percent increase in households from 2000 through 2010, compared to increases of a higher 8.4 percent in Alabama and a much higher 10.7 percent in the United States. Cullman County, Alabama and the United States are projected to increase in households by 9.6 percent, 7.8 percent and 10.3 percent, respectively.
Cullman County had the lowest level per capita income level in both 2000 and 2010. Per capita income increased in all areas from 2000 to 2010. Cullman County’s per capita income increased to from $16,758 to $20,869, with Alabama’s and the United States’ per capita income levels increasing from $17,941 to $23,406 and from $21,242 to $28,088, respectively. All areas are projected to show increases in per capita through 2025 to levels of $30,141, $32,595 and $39,979 in Cullman County, Alabama and the United States, respectively. In 2000, median household income was a lower $32,582 in Cullman County, $34,250 in Alabama and $42,257 in the United States. Median household income increased from 2000 to 2010 by 17.1 percent, 21.3 percent, and 21.5 percent to $38,168, $41,539 and $51,362 in Cullman County, Alabama and the United States, respectively. All areas are also projected to show increases in their median household income levels from 2010 through 2025. The median household income levels in Cullman County, Alabama and the United States are projected to increase by 57.3 percent, 43.6 percent and 24.5 percent, respectively, to $60,029, $59,667 and $63,968, respectively, from 2010 to 2025.
27
Description of Primary Market Area (cont.)
Exhibit 23 provides a summary of key housing data for Cullman County, Alabama and the United States. In 2000, Cullman County had the highest owner-occupancy rate with owner-occupancy at 78.0 percent, higher than Alabama at 72.5 percent and the United States at 66.2 percent. As a result, Cullman County supported a lower rate of renter-occupied housing of 22.0 percent, compared to 27.5 percent in Alabama and 33.8 percent in the United States. In 2010, owner-occupied housing decreased in Cullman County to 70.1 percent, decreased to 69.7 percent in Alabama and decreased to 65.4 percent in the United States. Conversely, the renter-occupied rates increased in all areas. Cullman County’s renter occupancy rate increased to 29.9 percent and Alabama’s and the United States’ renter occupancy rates increased to 30.3 percent and 34.6 percent, respectively.
Cullman County’s 2000 median housing value was a lower $85,000, slightly lower than Alabama’s $85,100 and much lower than that of the United States at $119,600. The 2000 median rent values were $398, $447, and $602 in Cullman County, Alabama and the United States, respectively. In 2010, median housing values had increased in Cullman County, Alabama and the United States to $87,000, $123,900 and $186,200. The 2010 median rent levels were $585, $667 and $871 in Cullman County, Alabama and the United States, respectively. More recently, median housing estimates in 2020 were $136,448, $153,094 and $221,068 for Cullman County, Alabama and the United States, respectively.
In 2000, the major source of employment for all areas by industry group, based on share of employment, was the services industry. The services industry was responsible for the majority of employment in Cullman County, Alabama and the United States with 34.3 percent, 43.0 percent, and 46.7 percent of jobs (reference Exhibit 24). The manufacturing industry was the second major employer in Cullman County at 23.0 percent and also in Alabama at 18.4 percent, but was the third largest employer in the United States at 14.1 percent. The wholesale/retail trade group was the third major overall employer in Cullman County and Alabama at 18.6 percent and 15.8 percent, respectively, and the wholesale/retail trade group was the second major overall employer in the United States with 15.3 percent of employment. The agriculture/mining group,
28
Description of Primary Market Area (cont.)
construction group, transportation/utilities, information and finance/insurance/real estate groups combined to provide 24.1 percent of employment in Cullman County, 22.8 percent of employment in Alabama and 23.9 percent in the United States.
In 2010, the services industry, manufacturing industry and wholesale/retail trade industry provided the first, second and third highest levels of employment, respectively, for Cullman County. In Alabama and the United States, the wholesale/retail sector was the second highest employer with the manufacturing industry third. The services industry accounted for 39.6 percent, 47.8 percent and 53.2 percent in Cullman County, Alabama and the United States, respectively. The manufacturing trade industry provided for 18.4 percent, 14.5 percent and 10.4 percent of employment in Cullman County, Alabama and the United States, respectively. The wholesale/retail trade group provided 15.8 percent, 15.1 percent, and 14.5 percent of employment in Cullman County, Alabama and the United States, respectively. In the 2010 Census, the agriculture/mining, construction, transportation/utilities, information, and finance/insurance/real estate sectors accounted for 26.2 percent, 22.6 percent and 21.9 percent in Cullman County, Alabama and the United States, respectively. The 2020 American Community Survey indicated the service industry remaining the highest employer, with the wholesale/retail industry increasing in employment percentages in Cullman County, Alabama and the United States. The manufacturing industry was the third highest employer in all three areas.
Some of the largest employers in Cullman County are listed below.
Employer | Employees | Product/Service | ||
Cullman Regional Medical Center | 1,365 | Health Care | ||
Cullman County Schools | 1,220 | Education | ||
Walmart Distribution | 1,120 | Retail Distribution | ||
Topre America Corporation | 831 | Manufacturing | ||
Walmart Super Center North/South | 743 | Retail | ||
REHAU | 680 | Manufacturing | ||
City of Cullman | 678 | Government | ||
Wallace State Community College | 547 | Education | ||
Cullman County Commission | 491 | Government | ||
Reliance Worldwide | 430 | Plumbing/Heating Innovation |
29
Description of Primary Market Area (cont.)
The unemployment rate is another key economic indicator. Exhibit 25 shows the unemployment rates in Cullman County, Alabama and the United State in 2016 through 2020. In 2016, Cullman County, Alabama and the United States had unemployment rates of 5.0 percent, 5.8 percent, and 4.9 percent, respectively. Through 2017, Cullman County, Alabama and the United States had decreases in unemployment to 3.7 percent in Cullman County, 4.4 percent in Alabama, and 4.4 percent in the United States. In 2018, unemployment rates decreased in all areas and were 3.2 percent, 3.9 percent, and 3.9 percent, in Cullman County, Alabama and the United States, respectively. In 2019, all areas again had reductions in unemployment. Cullman County, Alabama and the United States decreased in unemployment to 2.6 percent, 3.0 percent, and 3.7 percent, respectively. Because of the COVID-19 pandemic and accompanying business slowdown, unemployment rates increased strongly throughout 2020 but had settled back to 4.4 percent in Cullman County, 6.1 percent in Alabama, with the United States still at a higher 8.1 percent.
Exhibit 26 provides deposit data for banks and thrifts in Cullman County. As of June 30, 2020, Cullman’s deposit base in Cullman County was approximately $213.1 million or a 100.0 percent share of the thrift deposits and a 10.7 percent share of the total deposits, which were approximately $2.0 billion as of June 30, 2020. This was a decrease in the Bank’s percent of total deposits from June 30, 2019, when the Bank held 11.2 percent of total deposits in Cullman County.
Exhibit 27 provides interest rate data for each quarter for the years 2016 through the second quarter of 2020. The interest rates tracked are the Prime Rate, as well as 90-Day, One-Year and Thirty-Year Treasury Bills. The Prime Rate increased moderately from 2015 to 2017, then continued rising steadily in 2018 and stabilized in 2019. In 2020, all interest rate indexes decreased significantly as a result of COVID-19. Short term interest rates experienced a modestly rising trend in 2015, then rising at a faster pace in 2016, 2017 and 2018, then
30
Description of Primary Market Area (cont.)
decreasing modestly in 2019, and decreasing significantly in 2020, with the Thirty-Year Treasury rate rising in 2015, fluctuating in 2016 and then decreasing in 2017 but increasing in 2018 before decreasing in 2019 and decreasing much more in 2020.
SUMMARY
In summary, population increased slightly in Cullman County from 2000 to 2010 as did the number of households. The 2010 per capita income and median household income levels in Cullman County were lower than both state and national levels, while the per capita and median household income levels did increase through 2010 to a level modestly below the state level. Cullman County’s unemployment rates have been lower than both Alabama’s and the United States’ rates. According to the 2010 Census, the median housing value in Cullman County was well below the national median and remained below both state and national levels through 2020.
The Corporation holds deposits of 100.0 percent of all thrift deposits in the county as of June 30, 2020, but this represents a smaller 10.7 percent share of the total deposit base of approximately $2.0 billion.
31
III. | COMPARABLE GROUP SELECTION |
Introduction
Integral to the valuation of the Corporation is the selection of an appropriate group of publicly traded thrift institutions, hereinafter referred to as the “comparable group”. This section identifies the comparable group and describes each parameter used in the selection of each institution in the group, resulting in a comparable group based on such specific and detailed parameters, current financials and recent trading prices. The various characteristics of the selected comparable group provide the primary basis for making the necessary adjustments to the Corporation’s pro forma value relative to the comparable group. There is also a recognition and consideration of financial comparisons with all publicly traded, FDIC-insured thrifts in the United States and all publicly traded, FDIC-insured thrifts in the Southeast region and in Alabama.
Exhibits 28 and 29 present Share Data and Pricing Ratios and Key Financial Data and Ratios, respectively, both individually and in aggregate, for the universe of 92 publicly traded, FDIC-insured thrifts in the United States (“all thrifts”), excluding mutual holding companies, used in the selection of the comparable group and other financial comparisons. Exhibits 28 and 29 also subclassify all thrifts by region, including the 8 publicly traded Southeast thrifts (“Southeast thrifts”) and the 1 publicly traded thrift in Alabama (“Alabama thrift”), and by trading exchange.
The selection of the comparable group was based on the establishment of both general and specific parameters using financial, operating and asset quality characteristics of the Corporation as determinants for defining those parameters. The determination of parameters was also based on the uniqueness of each parameter as a normal indicator of a thrift institution’s operating philosophy and perspective. The parameters established and defined are considered to be both reasonable and reflective of the Corporation’s basic operation.
32
Introduction (cont.)
The general parameter requirements for the selection of the peer group candidates included a maximum asset size limit of $1.9 billion, a trading exchange requirement that each candidate be traded on one of the two major stock exchanges, the Alabama Stock Exchange or the NASDAQ, a geographic parameter that eliminates potential candidates located in the Northwest and Northeast, a merger and acquisition parameter that eliminates any potential candidate that is involved as a seller in a merger and acquisition transaction, and a recent conversion parameter that eliminates any institution that has not been converted from mutual to stock for at least four quarters or prior to December 31, 2020. Due to the general parameter requirement related to trading on NASDAQ or one of the other two major stock exchanges, the size of the peer group institutions results in larger institutions.
Inasmuch as the comparable group must consist of at least ten institutions, the parameters relating to asset size and geographic location have been expanded as necessary in order to fulfill this requirement.
GENERAL PARAMETERS
Merger/Acquisition
The comparable group will not include any institution that is a proposed seller in a merger or acquisition as of or prior to February 12, 2021, due to the price impact of such a pending transaction. There are no pending merger/acquisition transactions involving thrift institutions that were potential comparable group candidates in the Corporation’s city, county or market area as indicated in Exhibit 31.
33
Trading Exchange
It is necessary that each institution in the comparable group be listed on one of the two major stock exchanges, the Alabama Stock Exchange or the National Association of Securities Dealers Automated Quotation System (NASDAQ). Such a listing indicates that an institution’s stock has demonstrated trading activity and is responsive to normal market conditions, which are requirements for listing. Of the 92 publicly traded, FDIC-insured savings institutions, 4 are traded on the New York Stock Exchange and 47 are traded on NASDAQ. There were an additional 41 institutions traded over the counter or listed in the Pink Sheets, but they were not considered for the comparable group selection.
IPO Date
Another general parameter for the selection of the comparable group is the initial public offering (“IPO”) date, which must be at least four quarterly periods prior to December 31, 2020, in order to insure at least four consecutive quarters of reported data as a publicly traded institution. The resulting parameter is a required IPO of December 31, 2019, or earlier.
34
Geographic Location
The geographic location of an institution is a key parameter due to the impact of various economic and thrift industry conditions on the performance and trading prices of thrift institution stocks. Although geographic location and asset size are the two parameters that have been developed incrementally to fulfill the comparable group requirements, the geographic location parameter has nevertheless eliminated two regions of the United States distant to the Corporation, including the Northeast and Northwest regions.
The geographic location parameter consists of the Southeast, North Central, Southwest, West and Midwest regions for a total of twenty states. To extend the geographic parameter beyond those states could result in the selection of similar thrift institutions with regard to financial conditions and operating characteristics, but with different pricing ratios due to their geographic regions. The result could then be an unrepresentative comparable group with regard to price relative to the parameters and, therefore, an inaccurate value.
Asset Size
Asset size was another key parameter used in the selection of the comparable group. The total asset size for any potential comparable group institution was $1.9 billion or less, due to the general similarity of asset mix and operating strategies of institutions within this asset range, compared to the Corporation, with assets of approximately $331.4 million. Such an asset size parameter was necessary to obtain an appropriate comparable group of at least ten institutions.
In connection with asset size, we did not consider the number of offices or branches in selecting or eliminating candidates, since that characteristic is directly related to operating expenses, which are recognized as an operating performance parameter.
35
SUMMARY
Exhibits 32 and 33 show the 51 institutions considered as comparable group candidates after applying the general financial, geographic and merger/acquisition parameters, with the outlined institutions being those ultimately selected for the comparable group using the balance sheet, performance and asset quality parameters established in this section along with being publicly traded on one of the three major exchanges.
BALANCE SHEET PARAMETERS
Introduction
The balance sheet parameters focused on seven balance sheet ratios as determinants for selecting a comparable group, as presented in Exhibit 32. The balance sheet ratios consist of the following:
1. | Cash and investments to assets |
2. | Mortgage-backed securities to assets |
3. | One- to four-family loans to assets |
4. | Total net loans to assets |
5. | Total net loans and mortgage-backed securities to assets |
6. | Borrowed funds to assets |
7. | Equity to assets |
The parameters enable the identification and elimination of thrift institutions that are distinctly and functionally different from the Corporation with regard to asset mix. The balance sheet parameters also distinguish institutions with a significantly different capital position from the Corporation. The ratio of deposits to assets was not used as a parameter as it is directly related to and affected by an institution’s equity and borrowed funds ratios, which are separate parameters.
36
Cash and Investments to Assets
The Bank’s ratio of cash and investments to assets, excluding mortgage-backed securities, was 23.91 percent at December 31, 2020, and reflects the Corporation’s higher share of investments, above the national average of 14.79 percent and higher than the regional average of 21.64 percent. The Bank’s investments have consisted of federal agency securities, municipal securities, and interest-bearing deposits. For its recent two years ended December 31, 2019, and December 31, 2020, the Corporation’s average ratio of cash and investments to assets was a normal 15.74 percent, ranging from a high of 23.91 percent in 2020 to a low of 8.90 percent in 2019 and was 23.91 percent at December 31, 2020.
The parameter range for cash and investments is has been defined as 45.0 percent or less of assets, with a midpoint of 22.5 percent.
Mortgage-Backed Securities to Assets
At December 31, 2020, the Corporation’s ratio of mortgage-backed securities to assets was 0.87 percent, moderately lower than the national average of 6.9 percent and the regional average of 7.6 percent for publicly traded thrifts.
Inasmuch as many institutions purchase mortgage-backed securities as an alternative to both lending, relative to cyclical loan demand and prevailing interest rates, and other investment vehicles, this parameter is also fairly broad at 30.0 percent or less of assets and a midpoint of 15.0 percent.
One- to Four-Family Loans to Assets
The Corporation’s lending activity is focused on the origination of residential mortgage loans secured by one- to four-family dwellings. One- to four-family loans, including
37
One- to Four-Family Loans to Assets (cont.)
construction loans and excluding home equity loans, represented 34.68 percent of the Corporation’s assets at December 31, 2020, which is lower than its ratio of 42.62 percent at December 31, 2019, and lower than its ratio of 43.43 percent at December 31, 2018. The parameter for this characteristic is 40.00 percent of assets or less in one- to four-family loans with a midpoint of 20.00 percent.
Total Net Loans to Assets
At December 31, 2020, the Corporation had a 69.95 percent ratio of total net loans to assets and a lower two fiscal year average of 76.71 percent, compared to the national average of a similar 69.69 percent and the regional average of 63.37 percent for publicly traded thrifts. The Corporation’s ratio of total net loans to assets changed from 82.84 percent of total assets at December 31, 2018, to 83.47 percent at December 31, 2019, to 69.95 percent at December 31, 2020.
The parameter for the selection of the comparable group is from 26.0 percent to 76.0 percent with a midpoint of 51.0 percent. The lower end of the parameter range relates to the fact that, as the referenced national and regional averages indicate, many institutions hold greater levels of investment securities and/or mortgage-backed securities as cyclical alternatives to lending, but may otherwise be similar to the Corporation.
Total Net Loans and Mortgage-Backed Securities to Assets
As discussed previously, the Corporation’s shares of mortgage-backed securities to assets and total net loans to assets were 0.87 percent and 69.95 percent, respectively, for a combined share of 70.82 percent. Recognizing the industry and regional ratios of 76.55 percent and 70.99
38
Total Net Loans and Mortgage-Backed Securities to Assets (cont.)
percent, respectively, the parameter range for the comparable group in this category is 50.0 percent to 92.0 percent, with a midpoint of 71.0 percent.
Borrowed Funds to Assets
The Corporation had borrowed funds of $33.5 million or 16.14 percent of assets at December 31, 2020, which is lower than current industry averages.
The use of borrowed funds by some institutions indicates an alternative to retail deposits and may provide a source of longer term funds. The federal insurance premium on deposits has also increased the attractiveness of borrowed funds. The institutional demand for borrowed funds has increased in 2019, due to rising rates paid on deposits and is now experiencing a modest decrease as rates have decreased.
The parameter range of borrowed funds to assets is 46.0 percent or less with a midpoint of 23.0 percent.
Equity to Assets
The Corporation’s equity to assets ratio was 17.16 percent at December 31, 2020, 17.91 percent at December 31, 2019, and 17.28 percent at December 31, 2018, averaging 17.45 percent for the three fiscal years ended December 31, 2020. The Bank’s retained earnings increased in 2018, increased in 2019, and also increased in 2020. After the second stage offering, based on the midpoint value of $56.0 million, with a public offering of $32.6 million, with 50.0 percent of the net proceeds of the public offering going to the Bank, its equity is projected to increase to 19.38 percent of assets, with the Corporation at 21.50 percent of assets.
39
Equity to Assets (cont.)
Based on those equity ratios, we have defined the equity ratio parameter to be 9.0 percent to 22.0 percent with a midpoint ratio of 15.5 percent.
40
PERFORMANCE PARAMETERS
Introduction
Exhibit 33 presents five parameters identified as key indicators of the Corporation’s earnings performance and the basis for such performance both historically and the year ended December 31, 2020. The primary performance indicator is the Corporation’s core return on average assets (ROAA). The second performance indicator is the Corporation’s core return on average equity (ROAE). To measure the Corporation’s ability to generate net interest income, we have used net interest margin. The supplemental source of income for the Corporation is noninterest income, and the parameter used to measure this factor is the ratio of noninterest income to average assets. The final performance indicator is the Corporation’s ratio of operating expenses or noninterest expenses to average assets, a key factor in distinguishing different types of operations, particularly institutions that are aggressive in secondary market activities, which often results in much higher operating costs and overhead ratios.
Return on Average Assets
The key performance parameter is core ROAA. For the year ended December 31, 2020, the Corporation’s core ROAA was 1.13 percent based on a core income of $3,546,000, as detailed in Item I of this Report. The net ROAA for the year ended December 31, 2019, was also 1.13 percent. The Corporation’s ROAAs in its most recent three fiscal years ended December 31, 2020, were 1.33 percent, 1.26 percent, and 1.13 percent, respectively, with a three fiscal year average ROAA of 1.24 percent.
Considering the historical and current earnings performance of the Corporation, the range for the ROAA parameter based on core income has been defined as 2.25 percent or less with a midpoint of 1.13 percent.
41
Return on Average Equity
The ROAE has been used as a secondary parameter to eliminate any institutions with an unusually high or low ROAE that is inconsistent with the Corporation’s position. This parameter does not provide as much meaning for a newly converted thrift institution as it does for established stock institutions, due to the unseasoned nature of the capital structure of the newly converted thrift and the inability to accurately reflect a mature ROAE for the newly converted thrift relative to other stock institutions.
The Corporation’s core ROAE for the year ended December 31, 2020, was 6.43 percent based on its core income and 7.17 percent in the fiscal year ended December 31, 2019.
The parameter range for ROAE for the comparable group, based on core income, is 24.00 percent or less with a midpoint of 12.00 percent.
Net Interest Margin
The Corporation had a net interest margin of 3.85 percent for the year ended December 31, 2020, representing net interest income as a percentage of average interest-earning assets. The Corporation’s net interest margin levels in its three fiscal years of 2017 through 2019 were 4.01 percent, 4.16 percent, and 4.06 percent, respectively, averaging 4.08 percent.
The parameter range for the selection of the comparable group is from a low of 1.80 percent to a high of 4.10 percent with a midpoint of 2.95 percent.
42
Operating Expenses to Assets
For the year ended December 31, 2020, the Corporation had a 2.57 percent ratio of operating expense to average assets. In its three fiscal years ended December 31, 2019, the Corporation’s expense ratio averaged 2.69 percent, from a low of 2.66 percent in fiscal year 2019 to a high of 2.72 percent in fiscal year 2018.
The operating expense to assets parameter for the selection of the comparable group is from a low of 1.00 percent to a high of 7.20 percent with a midpoint of 4.10 percent.
Noninterest Income to Assets
Compared to publicly traded thrifts, the Corporation has experienced a lower level of noninterest income as a source of additional income. The Corporation’s ratio of noninterest income to average assets was 0.46 percent for the year ended December 31, 2020. For its three years ended December 31, 2017 through 2019, the Corporation’s ratio of noninterest income to average assets was 0.55 percent, 0.56 percent and 0.49 percent, respectively, for an average of 0.53 percent.
The range for this parameter for the selection of the comparable group is 7.50 percent of average assets or less, with a midpoint of 3.75 percent.
ASSET QUALITY PARAMETERS
Introduction
The final set of financial parameters used in the selection of the comparable group are asset quality parameters, also shown in Exhibit 33. The purpose of these parameters is to insure
43
Introduction (cont.)
that any thrift institution in the comparable group has an asset quality position similar to that of the Corporation. The three defined asset quality parameters are the ratios of nonperforming assets to total assets, repossessed assets to total assets and loan loss reserves to total assets at the end of the most recent period.
Nonperforming Assets to Total Assets
The Corporation’s ratio of nonperforming assets to assets was 0.17 percent at December 31, 2020, which is lower than the national average of 0.64 percent for publicly traded thrifts and the average of 0.70 percent for Southeast thrifts. The Corporation’s ratio of nonperforming assets to total assets averaged 0.19 for its most recent three fiscal years ended December 31, 2020, from a high of 0.21 percent in 2018, to a low of 0.17 percent 2020.
The comparable group parameter for nonperforming assets is 1.16 percent or less of total assets, with a midpoint of 0.58 percent.
Repossessed Assets to Assets
The Corporation had repossessed assets of $434,000 at December 31, 2020, representing a ratio to total assets of 0.13 percent, following ratios of repossessed assets to total assets of 0.13 percent and 0.04 percent at December 31, 2019, and December 31, 2018, respectively. National and regional averages were 0.08 percent and 0.26 percent, respectively, for publicly traded thrift institutions.
The range for the repossessed assets to total assets parameter is 0.20 percent of assets or less with a midpoint of 0.10 percent.
44
Loans Loss Reserves to Assets
The Corporation had an allowance for loan losses of $2,361,000, representing a loan loss allowance to total assets ratio of 0.71 percent at December 31, 2020, which was lower than its 0.74 percent ratio at December 31, 2019, and similar to its 0.71 percent ratio at December 31, 2018.
The loan loss allowance to assets parameter range used for the selection of the comparable group required a minimum ratio of 0.15 percent of assets.
THE COMPARABLE GROUP
With the application of the parameters previously identified and applied, the final comparable group represents ten institutions identified in Exhibits 33, 34 and 35. The comparable group institutions range in size from $328.2 million to $1.89 billion with an average asset size of $1.1 billion and have an average of 12.0 offices per institution. Three of the comparable group institutions are in Pennsylvania, two are in Indiana, with one each in California, Louisiana, Minnesota, Illinois, and Maryland, and all ten are traded on NASDAQ.
The comparable group institutions as a unit have a ratio of equity to assets of 10.34 percent, which is 11.3 percent lower than all publicly traded thrift institutions in the United States; and for the most recent four quarters indicated a core return on average assets of 0.80 percent, higher than all publicly traded thrifts at 0.75 percent and higher than all publicly traded Alabama thrifts at 0.07 percent.
45
IV. | ANALYSIS OF FINANCIAL PERFORMANCE |
This section reviews and compares the financial performance of the Corporation to all publicly traded thrifts, to publicly traded thrifts in the Southeast region and to Alabama thrifts, as well as to the ten institutions constituting the Corporation’s comparable group, as selected and described in the previous section. The comparative analysis focuses on financial condition, earning performance and pertinent ratios as presented in Exhibits 36 through 41.
As presented in Exhibits 37 and 38, at December 31, 2020, the Corporation’s total equity of 17.16 percent of assets was higher than the comparable group at 10.34 percent, all thrifts at 11.66 percent, Southeast thrifts at 11.00 percent and the Alabama thrift at 10.93 percent. The Corporation had a 69.95 percent share of net loans in its asset mix, higher than the comparable group at 63.51 percent, higher than all thrifts at 69.69 percent, higher than the Alabama thrift at 57.38 percent and higher than Southeast thrifts at 63.37 percent. The Corporation’s modestly higher share of net loans and higher 23.91 percent share of cash and investments reflects its much lower 0.87 percent share of mortgage-backed securities. The comparable group had a lower 17.55 percent share of cash and investments and a higher 11.29 percent share of mortgage-backed securities. All thrifts had 6.86 percent of assets in mortgage-backed securities and 14.79 percent in cash and investments. The Corporation’s 65.47 percent share of deposits was lower than the comparable group, all thrifts, Southeast thrifts and the Alabama thrift, reflecting the Corporation’s higher share of borrowed funds of 16.14 percent and higher share of equity of 17.16 percent. As ratios to assets, the comparable group had deposits of 76.20 percent and borrowings of 13.65 percent. All thrifts averaged a 77.75 percent share of deposits and 9.70 percent of borrowed funds, while Southeast thrifts had an 82.21 percent share of deposits and a 6.56 percent share of borrowed funds. The Alabama thrift had an 88.15 percent share of deposits and a zero percent share of borrowed funds. The Corporation had zero percent in goodwill and intangible assets, compared to 0.21 percent for the comparable group, 0.71 percent for all thrifts, 0.17 percent for Southeast thrifts and zero percent for the Alabama thrift.
46
Analysis of Financial Performance (cont.)
Operating performance indicators are summarized in Exhibits 39, 40 and 41 and provide a synopsis of key sources of income and key expense items for the Corporation in comparison to the comparable group, all thrifts, and regional thrifts for the trailing four quarters.
As shown in Exhibit 41, for the year ended December 31, 2020, the Corporation had a yield on average interest-earning assets exceeding the comparable group and higher than Southeast thrifts and the Alabama thrift. The Corporation’s yield on interest-earning assets was 4.82 percent compared to the comparable group at 3.82 percent, with all thrifts at 4.10 percent, Southeast thrifts at 4.14 percent and the Alabama thrift at 4.02 percent.
The Corporation’s cost of funds for the year ended December 31, 2020, was higher than the comparable group, all thrifts, Southeast thrifts and the Alabama thrift. The Corporation had an average cost of interest-bearing liabilities of 1.18 percent compared to 1.17 percent for the comparable group, 1.10 percent for all thrifts, 1.18 percent for Southeast thrifts and 0.63 percent for the Alabama thrift. The Corporation’s yield on interest-earning assets and interest cost resulted in a net interest spread of 3.64 percent, which was higher than the comparable group at 2.65 percent, higher than all thrifts at 3.00 percent, higher than Southeast thrifts at 3.17 percent and the Alabama thrift at 3.40 percent. The Corporation generated a net interest margin of 3.85 percent for the year ended December 31, 2020, based on its ratio of net interest income to average interest-earning assets, which was higher than the comparable group ratio of 2.95 percent. All thrifts averaged a lower 3.22 percent net interest margin for the trailing four quarters, with Southeast thrifts at 3.30 percent and the Alabama thrift at a lower 3.43 percent.
The Corporation’s major source of earnings is interest income, as indicated by the operations ratios presented in Exhibit 40. The Corporation had $152,000 in provision for loan losses during the year ended December 31, 2020, representing 0.05 percent of average assets. The average provision for loan losses for the comparable group was 0.26 percent, with all thrifts at 0.27 percent, Southeast thrifts at 0.18 percent and the Alabama thrift at (0.17) percent.
47
Analysis of Financial Performance (cont.)
The Corporation’s total noninterest income was $1,449,000 or 0.46 percent of average assets for the year ended December 31, 2020. Such a ratio of noninterest income to average assets was lower than the comparable group at 1.45 percent, and lower than all thrifts at 0.88 percent, Southeast thrifts at 0.72 percent and the Alabama thrift at 0.41 percent. For the year ended December 31, 2020, the Corporation’s operating expense ratio was 2.57 percent of average assets, lower than the comparable group at 2.90 percent, lower than all thrifts at 2.85 percent, Southeast thrifts at 2.91 percent, and the Alabama thrift at 3.82 percent.
The overall impact of the Corporation’s income and expense ratios is reflected in its net income and return on assets. For the year ended December 31, 2020, the Corporation had a net ROAA of 1.13 percent and an identical core ROAA of 1.13 percent. For its most recent four quarters, the comparable group had a lower net ROAA of 0.88 percent and a core ROAA of 0.80 percent. All publicly traded thrifts averaged a lower net ROAA of 0.76 percent and 0.75 percent core ROAA, with Southeast thrifts a 0.54 percent net ROAA and a 0.50 percent core ROAA. The twelve month net ROAA for the one Alabama thrift was (0.06) percent and their core ROAA was 0.07 percent.
48
V. | MARKET VALUE ADJUSTMENTS |
This is a conclusive section where adjustments are made to determine the pro forma market value or appraised value of the Corporation based on a comparison of Cullman with the comparable group. These adjustments will take into consideration such key items as earnings performance, primary market area, financial condition, asset and deposit growth, dividend payments, subscription interest, liquidity of the stock to be issued, management, and market conditions or marketing of the issue. It must be noted that all of the institutions in the comparable group have their differences among themselves and relative to the Bank, and, as a result, such adjustments become necessary.
EARNINGS PERFORMANCE
In analyzing earnings performance, consideration was given to net interest income, the amount and volatility of interest income and interest expense relative to changes in market area conditions and to changes in overall interest rates, the quality of assets as it relates to the presence of problem assets which may result in adjustments to earnings due to provisions for loan losses, the balance of current and historical nonperforming assets and real estate owned, the balance of valuation allowances to support any problem assets or nonperforming assets, the amount and volatility of noninterest income, and the amount and ratio of noninterest expenses. The earnings performance analysis was based on the Bank’s respective net and core earnings for the year ended December 31, 2020, with comparisons to the core earnings of the comparable group, all thrifts and other geographical subdivisions.
As discussed earlier, the Bank has experienced increases in its assets in each of the past four fiscal years, with loans increasing in only two of the past four years and deposits increasing in three of the past four years. The Bank has experienced higher earnings in each of the past five years and is focused on controlling operating expenses; increasing noninterest income; maintaining its net interest margin; monitoring and strengthening its ratio of interest sensitive assets relative to interest sensitive liabilities, thereby maintaining its overall interest rate risk; and
49
Earnings Performance (cont.)
maintaining adequate allowances for loan losses to reduce the impact of any charge-offs. Historically, the Bank has been characterized with a modestly higher yield on earning assets and a higher cost of funds, resulting in a modestly higher net interest spread, which has been similar to or above industry averages, and higher than its comparable group, with a higher net interest margin, with the trend experiencing a decrease over the past two years. Its 3.85 percent net interest margin for the year ended December 31, 2020, was higher than the industry average of 3.22 percent and higher than the comparable group average of 2.95 percent. During its past two years ended December 31, 2020, Cullman’s ratio of interest expense to interest-bearing liabilities has increased modestly from 110.0 percent in 2018 to 112.0 percent in 2019, and then to 118.0 percent in the year ended December 31, 2020. The Bank’s ratio was higher than the average of 103.0 percent for the comparable group and higher than the average of 106.0 percent for all thrifts. Following the conversion, the Bank will strive to control its operating expenses, strive to improve its net interest margin, increase its noninterest income, gradually increase its net income, increase its return on assets, continue to control its lower balance of nonperforming and classified assets, and closely monitor its interest rate risk.
From December 31, 2019, to December 31, 2020, two of the Bank’s seven categories of loans, excluding PPP loans, experienced increases in their balances, with commercial real estate loans increasing the most. Commercial real estate loans increased by $3.7 million or 5.0 percent, from December 31, 2019, to December 31, 2020. Multi-family loans increased by $327,000 or 7.2 percent from December 31, 2019, to December 31, 2020. One- to four-family loans decreased by $12.6 million or 9.9 percent, and commercial loans decreased by $8.2 million or 28.8 percent. Overall, the Bank’s lending activities resulted in a total loan decrease of $16.7 million or 6.7 percent and a net loan decrease of $17.0 million or 6.8 percent from December 31, 2019, to December 31, 2020.
The impact of Cullman’s primary lending efforts has been to generate a yield on average interest-earning assets of 4.82 percent for the year ended December 31, 2020, compared to a lesser 3.82 percent for the comparable group, 4.10 percent for all thrifts and a lower 4.02 percent
50
Earnings Performance (cont.)
for the Alabama thrift. The Bank’s ratio of interest income to average assets was 4.50 percent for the year ended December 31, 2020, higher than the comparable group at 3.61 percent, all thrifts at 3.78 percent and higher than the Alabama thrift at 3.72 percent.
Cullman’s 1.18 percent cost of interest-bearing liabilities for the year ended December 31, 2020, was slightly higher than the comparable group at 1.17 percent, higher than all thrifts at 1.10 percent, higher than Southeast thrifts at 0.97 percent and higher than the Alabama thrift at 0.63 percent. The Bank’s resulting net interest spread of 3.64 percent for the year ended December 31, 2020, was higher than the comparable group at 2.15 percent, higher than all thrifts at 3.00 percent, higher than Southeast thrifts at 3.17 percent and higher than the Alabama thrift at 3.40 percent. The Bank’s net interest margin of 3.85 percent, based on average interest-earning assets for the year ended December 31, 2020, was higher than the comparable group at 2.95 percent, higher than all thrifts at 3.22 percent, higher than Southeast thrifts at 3.30 percent and higher than the Alabama thrift 3.43 percent.
The Bank’s ratio of noninterest income to average assets was 0.46 percent for the year ended December 31, 2020, which was moderately lower than the comparable group at 1.45 percent, lower than all thrifts at 0.88 percent, Southeast thrifts at 0.72 percent and higher than the Alabama thrift at 0.41 percent.
The Bank’s operating expenses were lower than the comparable group, and lower than all thrifts, Southeast thrifts, and the Alabama thrift. For the year ended December 31, 2020, Cullman had an operating expenses to assets ratio of 2.57 percent compared to 2.90 percent for the comparable group, 2.85 percent for all thrifts, 2.91 percent for Southeast thrifts and 3.82 percent for the Alabama thrift. Cullman had a higher 64.3 percent efficiency ratio for the year ended December 31, 2020, compared to the comparable group with an efficiency ratio of 67.8 percent. The efficiency ratio for all publicly traded thrifts was 59.7 percent for the most recent year.
51
Earnings Performance (cont.)
For the year ended December 31, 2020, Cullman generated a lower ratio of noninterest income, a lower ratio of noninterest expenses and a modestly higher net interest margin relative to its comparable group. The Bank had a 0.05 percent provision for loan losses during the year ended December 31, 2020, compared to the comparable group at 0.20 percent of assets, all thrifts at 0.27 percent and Southeast thrifts at 0.18 percent. The Bank’s allowance for loan losses to total loans of 1.01 percent was lower than the comparable group and lower than all thrifts. The Bank’s 424.64 percent ratio of reserves to nonperforming assets was similar to the comparable group at 415.46 percent and higher than all thrifts at 373.62 percent and lower than Southeast thrifts at 629.15 percent.
As a result of its operations, the Bank’s net and core income for the year ended December 31, 2020, were higher than the comparable group. The Bank had a return on average assets of 1.13 percent for the year ended December 31, 2020, and a return on average assets of 1.26 percent and 1.33 percent in 2019 and 2018, respectively. The Bank’s core return on average assets was an identical 1.13 percent for the year ended December 31, 2020, as detailed in Exhibit 7. For their most recent four quarters, the comparable group had a modestly lower net ROAA of 0.88 percent and a lower core ROAA of 0.80 percent, while all thrifts indicated a lower net ROAA and lower core ROAA of 0.76 percent and 0.75 percent, respectively. Southeast thrifts indicated a net ROAA of 0.54 percent and a core ROAA of 0.50 percent.
Following its conversion, Cullman’s earnings will continue to be dependent on a combination of the overall trends in interest rates, the consistency, reliability and variation of its noninterest income, overhead expenses and its asset quality and its future needs for provisions for loan losses. Earnings are projected to represent a higher 1.15 percent in fiscal 2021 followed by earnings based on ROAA of 1.18 percent in 2022 and 1.19 percent in 2023. The Bank’s ratio of noninterest income to average assets decreased slightly in 2020 and has consistently been below industry averages. Overhead expenses to assets indicated a modest decrease during the past year and are projected to continue to remain lower as a ratio.
52
Earnings Performance (cont.)
In recognition of the foregoing earnings related factors, considering Cullman’s historical and current performance measures, as well as Business Plan projections, a modest upward adjustment has been made to the Corporation’s pro forma market value for earnings performance.
53
MARKET AREA
Cullman’s market area is focused on Cullman County in Alabama. Population increased slightly in Cullman County from 2000 to 2010 as did the number of households. The 2010 per capita income and median household income levels in Cullman County were lower than both state and national levels, while the per capita and median household income levels did increase through 2010 to a level still below the state level. Cullman County’s unemployment rates have been lower than both Alabama’s and the United States’ rates. According to the 2010 Census, the median housing value in Cullman County was well below the national median and remained well below both state and national levels through 2020.
The Corporation holds deposits of 100.0 percent of all thrift deposits in the county as of June 30, 2020, but this represents a smaller 10.7 percent share of the total deposit base of approximately $2.0 billion.
In recognition of the foregoing factors, we believe that a downward adjustment is warranted for the Bank’s market area.
54
FINANCIAL CONDITION
The financial condition of Cullman is discussed in Section I and shown in Exhibits 1, 2, 5, and 12 through 20, and is compared to the comparable group in Exhibits 36, 37, and 38. The Corporation’s ratio of total equity to total assets was 17.16 percent at December 31, 2020, which was higher than the comparable group at 10.34 percent, all thrifts at 11.66 percent and Southeast thrifts at 11.00 percent. Based on the second stage offering completed at the midpoint of the valuation range, the Corporation’s pro forma equity to assets ratio will increase to 21.50 percent and the Bank’s pro forma equity to assets ratio will increase to 19.38 percent.
The Bank’s mix of assets and liabilities indicates both similarities to and variations from its comparable group. Cullman had a slightly higher 69.95 percent ratio of net loans to total assets at December 31, 2020, compared to the comparable group at 63.51 percent. All thrifts indicated a similar 69.69 percent, with Southeast thrifts at a lower 63.37 percent. The Bank’s 23.91 percent share of cash and investments was higher than the comparable group at 17.55 percent, while all thrifts were at 14.79 percent and Southeast thrifts were at 21.64 percent. Cullman’s 0.87 percent ratio of mortgage-backed securities to total assets was lower than the comparable group at 11.29 percent and lower than all thrifts at 6.86 percent and lower than Southeast thrifts at 7.62 percent.
The Bank’s 65.47 percent ratio of deposits to total assets was lower than the comparable group at 76.20 percent, lower than all thrifts at 77.75 percent and lower than Southeast thrifts at 82.21 percent. Cullman’s lower ratio of deposits was due to its higher share of equity. Cullman had a higher equity to asset ratio of 17.16 percent, compared to the comparable group at 10.34 percent of total assets, with all thrifts at 11.66 percent and Southeast thrifts at 11.00 percent. Cullman had a higher share of borrowed funds to assets of 16.14 percent at December 31, 2020, higher than the comparable group at 13.65 percent and higher than all thrifts at 9.70 percent and Southeast thrifts at 6.56 percent. In 2020, total deposits increased by $28.1 million or 14.9 percent. During 2019, Cullman’s deposits decreased by $1.1 million or 0.6 percent from $190.0 million to $159.9 million.
55
Financial Condition (cont.)
Cullman had zero percent in goodwill and intangible assets and had a higher 0.13 share of repossessed real estate at December 31, 2020. The Bank had repossessed real estate of $34,000 or 0.13 percent of assets at December 31, 2020. This compares to ratios of 0.21 percent for goodwill and intangible assets and 0.05 percent for real estate owned, for the comparable group. All thrifts had a goodwill and intangible assets ratio of 0.71 percent and a real estate owned ratio of 0.08 percent.
The financial condition of Cullman has not been impacted by its lower balance of nonperforming assets which totaled $566,000 or 0.17 percent of total assets at December 31, 2020, compared to a higher 0.59 percent for the comparable group, 0.64 percent for all thrifts, 0.70 percent for Southeast thrifts and 1.98 percent for the Alabama thrift. The Bank’s ratio of nonperforming assets to total assets was a higher 0.18 percent at December 31, 2019, and a higher 0.21 percent at December 31, 2018.
At December 31, 2020, Cullman had $2,361,000 of allowances for loan losses, which represented 0.71 percent of assets and 1.01 percent of total loans. The comparable group indicated higher allowance ratios, relative to assets and relative to loans, equal to 0.76 percent of assets and 1.11 percent of total loans, while all thrifts had allowances relative to assets and loans that averaged a higher 0.84 percent of assets and a lower 1.13 percent of total loans. Also of major importance is an institution’s ratio of allowances for loan losses to nonperforming assets, since a portion of nonperforming assets might eventually be charged off. Cullman’s $2,361,000 of allowances for loan losses represented 424.64 percent of nonperforming assets at December 31, 2020, compared to the comparable group’s similar 415.46 percent, with all thrifts at 373.62 percent, Southeast thrifts at 629.15 percent and the Alabama thrift’s ratio at 114.25 percent. Cullman’s ratio of net charge-offs to average total loans was zero percent for the year ended December 31, 2020, compared to a higher 0.03 percent for the comparable group, 0.05 percent for all thrifts and zero percent for Southeast thrifts.
56
Financial Condition (cont.)
Cullman has a modest level of interest rate risk. The change in the Bank’s EVE level at December 31, 2020, reflecting the most current information available, based on a rise in interest rates of 100 basis points was a 1.2 percent decrease, representing a dollar decrease in equity value of $702,000. The Bank’s exposure increases to a 3.5 percent decrease in its NPV level under a 200 basis point rise in rates, representing a dollar decrease in equity of $2,047,000. The Bank’s post shock EVE ratio at December 31, 2020, assuming a 200 basis point rise in interest rates was 17.66 percent and indicated a 21 basis point increase from its 17.45 percent based on no change in interest rates.
Compared to the comparable group, with particular attention to the Bank’s higher share of equity, lower share of nonperforming assets, normal share of allowance for loan loss to loans and higher share to nonperforming assets, we believe that a modest upward adjustment is warranted for Cullman’s current financial condition.
57
ASSET, LOAN AND DEPOSIT GROWTH
During its most recent two fiscal years, Cullman has been characterized by a moderate increase in assets, a modest decrease in loans, and a moderate increase in deposits. The Bank’s average annual asset change from December 31, 2018, to December 31, 2020, was 6.48 percent. This increase compares to a higher 7.4 percent increase for the comparable group, a similar 6.34 percent for all thrifts, and a higher 9.1 percent for Southeast thrifts. The Bank’s moderate increase in assets is greater than its change in net loans during the period of an average decrease of 2.3 percent with a strong increase in cash and investments of an annual 76.1 percent. Cullman’s deposits indicate an average annual increase of 5.65 percent from December 31, 2018, to December 31, 2020, compared to average growth rates of 10.2 percent for the comparable group, 7.9 percent for all thrifts and 11.2 percent for Southeast thrifts.
Cullman’s deposits indicated a moderate increase of 14.9 percent from December 31, 2019 to 2020, representing an annual growth rate of 7.4 percent. Annual deposit change was growth rates of 7.2 percent for the comparable group, 6.8 percent for all thrifts and 9.7 percent for Southeast thrifts. The Bank had $53.5 million in borrowed funds or 16.14 percent of assets at December 31, 2020, compared to the comparable group at 13.65 percent and also had a slightly lower $51.5 million in borrowed funds at December 31, 2019, or a higher 17.2 percent of assets.
In response to its higher deposit increase, recently, the Bank grew modestly in 2019 and moderately in 2020, and considering the demographics, competition and deposit base trends in its market area, the Bank’s ability to increase its asset, loan and deposit bases in the future is significantly dependent on its capital position combined with its ability to increase its market share by competitively pricing its loan and deposit products, maintaining a high quality of service to its customers and strengthening its loan origination activity, all impacted by the Bank’s performance by the senior management team. Cullman’s primary market area county experienced minimal increases in population and households from 2000 to 2010, while Alabama experienced moderate increases. The market area county also indicated 2010 per capita income
58
Asset, Loan and Deposit Growth (cont.)
below that of Alabama and the United States, and the median household income level in the market area county was also moderately below Alabama and well below the United States. In 2010, the median housing value in the market area county was much lower than that of Alabama and also much lower than that of the United States, and the median rent level was also lower than both state and national levels.
The total deposit base in the market area county increased by 4.2 percent from June 30, 2019, to June 30, 2020; and during that period, the number of financial institution offices in the county decreased by one office. From June 30, 2019, to June 30, 2020, Cullman’s deposit market share in its market area county decreased slightly, from 11.8 percent in 2019 to 10.7 percent in 2020.
Based on the foregoing factors, we have concluded that a moderate downward adjustment to the Corporation’s pro forma value is warranted for asset, loan and deposit growth.
DIVIDEND PAYMENTS
The Corporation paid dividends of $830,000 or $0.34 per share in 2020. The payment of cash dividends will likely continue in the future based upon such factors as earnings performance, financial condition, capital position, growth, asset quality and regulatory limitations. Eight of the ten institutions in the comparable group paid cash dividends during the most recent year for an average dividend yield of 1.64 percent and an average payout ratio of 19.03 percent. During that twelve month period, the average dividend yield for all thrifts was a higher 2.52 percent with a payout ratio of 27.81 percent.
In our opinion, a minimal downward adjustment to the pro forma market value of the Corporation is warranted related to dividend payments.
59
SUBSCRIPTION INTEREST
In 2020, investors’ interest in new issues was somewhat volatile in early 2020 due to the COVID-19 and then improved later in 2020. Such interest is related to the volatile economic conditions and downturn in financial institution stock prices, which could be further challenged in the future due to the current interest rate environment and the compression of net interest margin. The selective and conservative reaction of IPO investors appears generally to be related to a number of analytical, economic and market-related factors, including the financial performance and condition of the converting thrift institution, the strength and trend of the local economy, housing market conditions, general market conditions for financial institution stocks and stocks overall, aftermarket price trends and the expectation of merger/acquisition activity in the thrift industry.
Cullman will direct its offering initially to depositors and residents in its market area. The board of directors and officers anticipate purchasing $3.5 million or 10.7 percent of the stock offered to the public based on the appraised midpoint valuation and the 40.7 percent minority offering. The Bank will form an ESOP, which plans to purchase 8.0 percent of the total shares issued in the conversion, excluding any additional shares remaining from the first stage conversion.
The Bank has secured the services of Raymond James to assist in the marketing and sale of the conversion stock.
Based on the size of the offering, recent banking conditions, current market conditions, historical local market interest, the terms of the offering, and recent subscription levels for conversions, we believe that a moderate downward adjustment is warranted for the Bank’s anticipated subscription interest.
60
LIQUIDITY/MARKETABILITY OF THE STOCK
The Corporation will offer its shares through a subscription and community offering with the assistance of Raymond James. The stock of the Corporation will be traded on the NASDAQ Capital Market.
The Bank’s total public offering is considerably smaller in size than the average market value of the comparable group. The comparable group has an average market value of $100.5 million for the stock outstanding compared to a midpoint public offering of $32.6 million for the Corporation, less the ESOP and the estimated to be 350,000 shares purchased by officers and directors, resulting in shares sold of just 2,910,000 or $29.1 million. The Corporation’s public market capitalization will be approximately 32.4 percent of the size of the public market capitalization of the comparable group. Of the ten institutions in the comparable group, all trade on Nasdaq with those ten institutions indicating an average daily trading volume of over 4,748 shares during the last four quarters.
The comparable group has an average of 4,783,810 shares outstanding compared to 5,600,000 shares outstanding for the Corporation based on the midpoint valuation and including the exchange shares.
Based on the lower daily trading volume relative to the Corporation, we have concluded that a modest downward adjustment to the Corporation’s pro forma market value is warranted relative to the liquidity of its stock.
61
MANAGEMENT
The president and chief executive officer of Cullman is John A. Riley, III, who is also a director. Mr. Riley became president and chief executive officer in May 2006, having previously served the Bank as a loan officer since 1993. Ms. T’aira Ugarkovich is executive vice president and director of lending of the Bank. Previously, Ms. Ugarkovich was the Bank’s chief credit officer. Ms. Ugarkovich is a 2017 graduate from Alabama Banking School. Ms. Ugarkovich has 13 years of banking experience. Prior to working at Cullman Savings Bank, Ms. Ugarkovich was a credit officer for four years and treasury management officer for two years at Progress Bank. Ms. Katrina Stephens is senior vice president and is the chief financial officer, positions she has held since 2015. Ms. Stephens is a 2018 graduate from Alabama Banking School. Ms. Stephens was previously a senior level internal auditor at Regions Bank, where she began working in 2011. Prior to Regions, Ms. Stephens worked as a senior external auditor at Pricewaterhouse Coopers, where she begin working in 2007.
During its most recent fiscal year, Cullman has experienced a decrease in its net interest margin, typical of the industry, experienced a decrease in noninterest income and reduced its noninterest expenses to assets. The Bank did experience a decrease in its yield on earning assets, partially offset by a decrease in its cost of funds in 2020. The Bank experienced an ROAA of 1.13 percent in 2020, impacted by lower net interest income. The Bank’s stronger asset quality position remained stable in 2019 and 2020, with nonperforming assets decreasing from 0.18 percent in 2019 to 0.13 percent in 2020. The Bank has also slightly strengthened its lending activity from 2016 to 2020. The Bank’s management team is confident that the Bank is positioned for continued loan growth and improved profitability following its second stage offering.
Overall, we believe the Bank to be professionally and knowledgeably managed, as are the comparable group institutions. It is our opinion that no adjustment to the pro forma market value of the Corporation is warranted for management.
62
MARKETING OF THE ISSUE
The necessity to build a new issue discount into the stock price of a new conversion continues to be a closely examined issue in recognition of uncertainty among investors as a result of the thrift industry’s continued high level of competition, dependence on interest rate trends, volatility in the stock market, especially today, due to COVID-19, speculation on future changes, current legislation related to the regulation of financial institutions and their ability to generate selected income.
We believe that a new issue discount applied to the price to book valuation approach is appropriate and necessary in this offering and particularly in light of COVID-19. In our opinion, recent market trends, including the recent pricing decreases for several of the most recent conversions, cause us to conclude that a moderate new issue discount is warranted in the case of this offering. Consequently, at this time we have made a moderate downward adjustment to the Corporation’s pro forma market value related to a new issue discount.
63
VI. | VALUATION METHODS |
Introduction
As indicated in Section 3 of this Appraisal, in order to moderate the differences among the ten comparable group companies, we will derive their pricing ratios on a fully converted basis by applying pro forma second stage conversion assumptions to their current financial structure. Our application to the Corporation of the market value adjustments relative to the comparable group determined in Section 4 will be the basis for the pro forma market value of the Corporation on a fully converted basis, pursuant to regulatory guidelines.
Valuation Methods
Historically, the method most frequently used by this firm to determine the pro forma market value of common stock for thrift institutions has been the price to book value ratio method, due to the volatility of earnings in the thrift industry. As earnings in the thrift industry have decreased in 2020, along with market prices for financial institution stocks, less attention has been given to the price to core earnings method in 2020, considering decreases in bank stock prices during 2020. During the past two years, however, as fluctuating earnings have increased, with much lower interest rates having varying effects on the earnings of individual institutions, depending on the nature of their operations, the price to book value method has continued to be the valuation focus and more meaningful to the objective of discerning commonality and comparability among institutions. In our opinion, the price to book value method is the appropriate method upon which to place primary emphasis in determining the pro forma market value of the Corporation. Additional analytical and correlative attention will be given to the price to core earnings method and the price to assets method.
In applying each of the valuation methods, consideration was given to the adjustments to the Corporation’s pro forma market value discussed in Section V. Downward adjustments were
64
Valuation Methods (cont.)
made for the Bank’s market area, stock liquidity, dividends, subscription interest and for the marketing of the issue. No adjustments were made for management and asset, loan and deposit growth. Modest upward adjustments were made for the Bank’s earnings and financial condition.
Valuation Range
In addition to the pro forma market value, we have defined a valuation range. The pro forma market value or appraised value will also be referred to as the “midpoint value,” with the remaining points in the valuation range based on the number of shares offered to the public. The number of public shares at the minimum will be 15 percent less than at the midpoint; and increasing at the maximum to 15 percent over the midpoint.
Price to Book Value Method
In the valuation of thrift institutions, the price to book value method focuses on an institution’s financial condition. Exhibit 43 shows the average and median price to book value ratios for the comparable group, which were 89.47 percent and 87.53 percent, respectively. The comparable group indicated a moderate range, from a low of 74.60 percent to a high of 103.67 percent. The comparable group had modestly higher average and median price to tangible book value ratios of 93.79 percent and 93.31 percent, respectively, with a range of 75.48 percent to 115.08 percent. Excluding the low and the high in the group, the comparable group’s price to book value range narrowed slightly from a low of 80.69 percent to a high of 102.41 percent; and the comparable group’s price to tangible book value range narrowed slightly from a low of 80.84 percent to a high of 103.94 percent.
65
Price to Book Value Method (cont.)
The Corporation’s book value was $56,875,000 and its tangible book value was an identical $56,875,000 at December 31, 2020. In addition, the valuation recognized the Corporation’s $2,634,151 in assets held at the mutual holding company as part of the total equity in determining its valuation and valuation ratios.
Considering the foregoing factors in conjunction with the adjustments made in Section V, we have determined a fully converted pro forma price to book value ratio of 64.56 percent and a corresponding fully converted price to tangible book value ratio of 64.56 percent at the midpoint. The fully converted price to book value ratio decreases to 57.74 percent at the minimum then increases to 70.77 percent at the maximum, and to 77.16 percent at the super maximum, while the fully converted price to tangible book value ratio increases from 57.74 percent at the minimum to 77.16 percent at the super maximum.
The Corporation’s fully converted pro forma price to book value ratio of 64.56 percent at the midpoint, as calculated using the prescribed formulary computation indicated in Exhibit 44, is influenced by the Bank’s capitalization and local markets, reduced subscription interest in thrift stocks and overall market and economic conditions. Further, the Corporation’s ratio of equity to assets after the completion of the second stage offering at the midpoint of the valuation range will be approximately 24.09 percent compared to 10.34 percent for the comparable group.
Price to Core Earnings Method
The foundation of the price to core earnings method is the determination of the core earnings base to be used, followed by the calculation of an appropriate price to core earnings multiple. The Corporation’s after tax core earnings for the year ended December 31, 2020, was $3,546,000 (reference Exhibit 7) and its net earnings was an identical $3,546,000 for that period. To opine the pro forma market value of the Corporation using the price to core earnings method, we applied the core earnings base of $3,546,000.
66
Price to Core Earnings Method (cont.)
In determining the fully converted price to core earnings multiple, we reviewed the ranges of the price to core earnings and price to net earnings multiples for the comparable group and all publicly traded thrifts. As indicated in Exhibit 43, the average price to core earnings multiple for the comparable group was 19.55, while the median was a lower 14.38. The average price to net earnings multiple was 11.53, and the median multiple was 11.55. The range of the price to core earnings multiple for the comparable group was from a low of 4.54 to a high of 78.95. The range in the price to core earnings multiple for the comparable group, excluding the high and low ranges, was from a low multiple of 9.16 to a high of 18.08 times earnings for eight of the ten institutions in the group, indicating a significant narrowing of the range and normal range.
Consideration was given to the adjustments to the Corporation’s pro forma market value discussed in Section V. In recognition of those adjustments, we have determined a fully converted price to core earnings multiple of 16.13 at the midpoint, based on the Corporation’s core earnings of $3,54600 for the year ended December 31, 2020. The Corporation’s fully converted core earnings multiple of 16.13 is equal to its net earnings multiple of 16.13.
Price to Assets Method
The final valuation method is the price to assets method. This method is not frequently used, since the calculation incorporates neither an institution’s equity position nor its earnings performance. Additionally, the prescribed formulary computation of value using the pro forma price to net assets method does not recognize the runoff of deposits concurrently allocated to the purchase of conversion stock or incorporate any adjustment for intangible assets, returning a pro forma price to assets ratio below its true ratio following conversion.
Exhibit 45 indicates that the average price to assets ratio of the comparable group was 9.24 percent, and the median was a lower 9.17 percent. The range in the price to assets ratios for the comparable group varied from a low of 13.37 percent to a high of 20.08 percent. The
67
Price to Assets Method (cont.)
range narrows slightly with the elimination of the two extremes in the group to a low of 8.26 percent and a high of 10.02 percent.
Consistent with the previously noted adjustments, it is our opinion that an appropriate price to assets ratio for the Corporation is 15.54 percent at the midpoint, recognizing the Corporation’s much higher equity ratio, with the price to assets range of a low of 13.37 percent at the minimum to 20.08 percent at the super maximum.
Valuation Conclusion
Exhibits 43 through 50 present the pro forma valuation analysis and conclusions, pricing ratios, use of offering proceeds and a summary of the valuation premiums or discounts relative to the three valuation approaches based on the Corporation as fully converted.
Exhibit 50 presents the discounts or premiums of the Corporation’s fully converted pricing ratios relative to those of the comparable group. Based on the Corporation’s fully converted price to book value ratio and its equity of $59,509,151 including the mutual holding company assets at December 31, 2020, the Bank’s price to book value ratio of 64.56 percent represents a midpoint discount relative to the comparable group of 27.84 percent. The Corporation’s fully converted price to core earnings multiple of 16.13 represents midpoint discount relative to the comparable group of 17.49 percent. Recognizing the Corporation’s December 31, 2020, asset base of $361,250,825 including the mutual holding company assets, the Bank’s price to assets ratio of 15.54 percent represents a midpoint premium relative to the comparable group of 68.18 percent.
68
Valuation Conclusion (cont.)
As presented in Exhibit 45, the fully converted pro forma valuation range of the Corporation is from a minimum of $47,600,000 or 4,760,000 shares at $10.00 per share to a maximum of $64,400,000 or 6,440,000 shares at $10.00 per share, with a maximum, as adjusted, of $74,060,000 or 7,406,000 shares at $10.000 per share. Exhibit 44 also presents in detail the total number of shares to be issued at each valuation range and the respective number of shares issued to the mutual holding company, the public and the foundation.
It is our opinion that, as of February 12, 2021, the pro forma market value of the Corporation was $56,000,000 at the midpoint, representing a total of 5,600,000 shares at $10.00 per share, including 3,259,872 shares or 58.2 percent of the total shares offered to the public, 112,000 shares or 2.0 percent of the shares given to the foundation, and 2,228,128 shares or 39.8 percent of the total shares issued to the existing public shareholders.
69
EXHIBITS
NUMERICAL
EXHIBITS
EXHIBIT 1
CULLMAN BANCORP, INC.
Cullman, Alabama
Balance Sheet
At December 31, 2020
($000)
At December 31, 2020 | ||||
ASSETS | ||||
Cash and cash equivalents | $ | 3,136 | ||
Federal funds sold | 57,225 | |||
|
| |||
Cash and cash equivalents | 60,361 | |||
Securities available-for-sale | 18,875 | |||
Loans, net of allowance of $2,361 | 231,799 | |||
Loans held-for-sale | 173 | |||
Premises and equipment, net | 8,576 | |||
Foreclosed real estate | 434 | |||
Accrued interest receivable | 1,001 | |||
Restricted equity securities | 2,541 | |||
Bank-owned life insurance | 5,657 | |||
Other assets | 1,979 | |||
|
| |||
Total assets | $ | 331,396 | ||
|
| |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
LIABILITIES | ||||
Deposits: | ||||
Noninterest-bearing | $ | 14,375 | ||
Interest-bearing | 202,588 | |||
|
| |||
Total deposits | 216,963 | |||
FHLB advances and fed funds purchased | 53,500 | |||
Long-term debt | — | |||
Accrued interest payable and other liabilities | 4,058 | |||
|
| |||
Total liabilities | 274,521 | |||
SHAREHOLDERS’ EQUITY | ||||
Common stock, $0.01 par value; 20,000,000 shares authorized 2,449,919 shares outstanding at December 31, 2020 | 24 | |||
Additional paid-in capital | 6,687 | |||
Retained earnings | 49,679 | |||
Accumulated other comprehensive income (loss) | 542 | |||
Unearned ESOP shares, at cost | (57 | ) | ||
|
| |||
Total shareholders’ equity | 56,875 | |||
|
| |||
Total liabilities and shareholders’ equity | $ | 331,396 | ||
|
|
Source: Cullman Bancorp, Inc.’s unaudited financial statements
70
EXHIBIT 2
CULLMAN BANCORP, INC.
Cullman, Alabama
Balance Sheets
At December 31, 2016 2017, 2018 and 2019
($000)
December 31, | ||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 3,096 | $ | 3,244 | $ | 4,393 | $ | 2,008 | ||||||||
Federal funds sold | 3,000 | 5,250 | 12,700 | 5,325 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total cash and cash equivalents | 6,096 | 8,494 | 17,093 | 7,333 | ||||||||||||
Securities available-for-sale | 23,544 | 22,920 | 23,747 | 22,764 | ||||||||||||
Loans, net of allowance of $2,218, $2,163, $2,070 and $2,113, as of December 31, 2019, 2018, 2017 and 2016, respectively | 248,785 | 242,920 | 221,348 | 221,972 | ||||||||||||
Loans held-for-sale | — | 135 | 690 | 485 | ||||||||||||
Premises and equipment, net | 8,538 | 8,638 | 9,967 | 10,290 | ||||||||||||
Foreclosed real estate | 386 | 129 | 823 | 1,015 | ||||||||||||
Accrued interest receivable | 983 | 921 | 896 | 891 | ||||||||||||
Restricted equity securities | 2,452 | 2,337 | 2,328 | 2,514 | ||||||||||||
Bank-owned life insurance | 5,506 | 5,355 | 5,206 | 5,057 | ||||||||||||
Deferred tax asset, net | — | 942 | 672 | 976 | ||||||||||||
Other assets | 1,765 | 601 | 1,323 | 744 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | $ | 298,055 | $ | 293,392 | $ | 284,093 | $ | 274,041 | ||||||||
|
|
|
|
|
|
|
| |||||||||
LIABILITIES AND SHAREHOLDERS’ EARNINGS | ||||||||||||||||
LIABILITIES | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing | $ | 10,450 | $ | 13,490 | $ | 9,716 | $ | 10,799 | ||||||||
Interest-bearing | 178,438 | 176,460 | 174,550 | 158,849 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total deposits | 188,888 | 189,950 | 184,266 | 169,648 | ||||||||||||
FHLB advances and fed funds purchased | 51,500 | 49,000 | 49,000 | 54,000 | ||||||||||||
Long-term debt | — | — | 679 | 679 | ||||||||||||
Accrued interest payable and other liabilities | 4,272 | 3,753 | 3,333 | 3,124 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 244,660 | 242,703 | 237,278 | 227,451 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Common stock, $0.01 par value | 24 | 24 | 24 | 24 | ||||||||||||
Additional paid-in capital | 6,476 | 7,147 | 7,061 | 8,343 | ||||||||||||
Retained earnings | 46,964 | 44,072 | 40,233 | 38,831 | ||||||||||||
Accumulated other comprehensive income (loss) | 44 | (336 | ) | (204 | ) | (210 | ) | |||||||||
Unearned ESOP shares, at cost | (113 | ) | (218 | ) | (299 | ) | (398 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total shareholders’ equity | 53,395 | 50,689 | 46,815 | 46,590 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities and shareholders’ equity | $ | 298,055 | $ | 293,392 | $ | 284,093 | $ | 274,041 | ||||||||
|
|
|
|
|
|
|
|
Source: Cullman Bancorp, Inc. audited financial statements
71
EXHIBIT 3
CULLMAN BANCORP, INC.
Cullman, Alabama
Statement of Income
For the Twelve Months Ended December 31, 2020
Year Ended December 31, 2020 | ||||
Interest and dividend income: | ||||
Loans, including fees | $ | 13,468 | ||
Securities, taxable | 460 | |||
Securities, tax exempt | 70 | |||
Federal funds sold and other | 174 | |||
|
| |||
Total interest and dividend income | 14,172 | |||
Interest expense: | ||||
Deposits | 1,696 | |||
Federal Home Loan Bank advances and other borrowings | 1,171 | |||
|
| |||
Total interest expense | 2,867 | |||
Net interest income | 11,305 | |||
Provision for loan losses | 152 | |||
|
| |||
Net interest income after provision for loan losses | 11,153 | |||
Noninterest income: | ||||
Service charges on deposit accounts | 734 | |||
Income on bank-owned life insurance | 151 | |||
Gain on sales of mortgage loans | 462 | |||
Net gain on sale of foreclosed real estate | 2 | |||
Other | 100 | |||
|
| |||
Total noninterest income | 1,449 | |||
Noninterest expense: | ||||
Salaries and employee benefits | 5,502 | |||
Occupancy and equipment | 765 | |||
Data processing | 549 | |||
Professional and supervisory fees | 528 | |||
Office expense | 202 | |||
Advertising | 87 | |||
FDIC deposit insurance | 47 | |||
Other | 419 | |||
|
| |||
Total noninterest expense | 8,099 | |||
|
| |||
Income (loss) before income taxes | 4,503 | |||
Provision (credit) for income taxes | 957 | |||
|
| |||
Net income (loss) | $ | 3,546 | ||
|
|
Source: Cullman Bancorp, Inc.’s unaudited financial statements
72
EXHIBIT 4
CULLMAN BANCORP, INC.
Cullman, Alabama
Statements of Income
Years Ended December 31, 2016, 2017, 2018 and 2019
December 31, | ||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Loans, including fees | $ | 13,360 | $ | 12,642 | $ | 11,838 | $ | 11,333 | ||||||||
Securities | 627 | 622 | 642 | 607 | ||||||||||||
Federal funds sold and other | 345 | 409 | 231 | 135 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest and dividend income | 14,332 | 13,673 | 12,711 | 12,075 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 1,897 | 1,461 | 1,215 | 1,070 | ||||||||||||
Federal Home Loan Bank advances and other borrowings | 1,221 | 1,047 | 1,172 | 1,124 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest expense | 3,118 | 2,508 | 2,387 | 2,194 | ||||||||||||
Net interest income | 11,214 | 11,165 | 10,324 | 9,881 | ||||||||||||
Provision for loan losses | 55 | 83 | 0 | 294 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest income after provision for loan losses | 11,159 | 11,082 | 10,324 | 9,587 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 796 | 772 | 631 | 628 | ||||||||||||
Income on bank-owned life insurance | 151 | 149 | 149 | 153 | ||||||||||||
Gains on sales of mortgage loans | 409 | 258 | 392 | 402 | ||||||||||||
Gain on sale of securities available-for-sale | — | — | — | 8 | ||||||||||||
Net gain on sale of foreclosed real estate | 13 | 125 | 162 | — | ||||||||||||
Other | 87 | 343 | 240 | 333 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest income | 1,456 | 1,647 | 1,574 | 1,524 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 5,148 | 4,763 | 4,781 | 4,349 | ||||||||||||
Occupancy and equipment | 819 | 712 | 973 | 949 | ||||||||||||
Data processing | 648 | 565 | 518 | 476 | ||||||||||||
Professional and supervisory fees | 422 | 427 | 377 | 277 | ||||||||||||
Office expense | 207 | 188 | 183 | 200 | ||||||||||||
Advertising | 176 | 147 | 80 | 172 | ||||||||||||
Loss on Cullman Village | — | 458 | — | |||||||||||||
FDIC deposit insurance | 37 | 79 | 84 | 106 | ||||||||||||
Net (gains) losses on foreclosed real estate | — | — | 34 | (1 | ) | |||||||||||
Other | 406 | 505 | 501 | 411 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest expense | 7,863 | 7,844 | 7,531 | 6,939 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Income before income taxes | 4,752 | 4,885 | 4,367 | 4,172 | ||||||||||||
Income tax expense | 1,018 | 1,046 | 1,787 | 1,437 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net income | $ | 3,734 | $ | 3,839 | $ | 2,580 | $ | 2,735 | ||||||||
|
|
|
|
|
|
|
|
Source: Cullman Bancorp, Inc.’s audited financial statements
73
EXHIBIT 5
Selected Financial Information
At December 31, 2016, 2017, 2018, 2019 and 2020
(In thousands)
At December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
Selected Financial Condition Data: | ||||||||||||||||||||
Total assets | $ | 331,396 | $ | 298,055 | $ | 293,392 | $ | 284,093 | $ | 274,041 | ||||||||||
Securities available-for-sale | 18,875 | 23,544 | 22,920 | 23,747 | 22,764 | |||||||||||||||
Loans held-for-sale | 173 | — | 135 | 690 | 485 | |||||||||||||||
Loans receivable, net | 231,799 | 248,785 | 242,920 | 221,348 | 221,972 | |||||||||||||||
Premises and equipment, net | 8,576 | 8,538 | 8,638 | 9,967 | 10,290 | |||||||||||||||
Foreclosed real estate | 434 | 386 | 129 | 823 | 1,015 | |||||||||||||||
Federal Home Loan Bank stock, at cost | 2,541 | 2,452 | 2,337 | 2,328 | 2,514 | |||||||||||||||
Bank-owned life insurance | 5,657 | 5,506 | 5,355 | 5,206 | 5,057 | |||||||||||||||
Deposits | 216,963 | 188,888 | 189,950 | 184,266 | 169,648 | |||||||||||||||
Borrowings | 53,500 | 51,500 | 49,000 | 49,000 | 54,000 | |||||||||||||||
Shareholders’ equity | 56,875 | 53,395 | 50,689 | 46,815 | 46,590 |
Source: Cullman Bancorp, Inc.’s Prospectus
74
EXHIBIT 6
Income and Expense Trends
For the Years Ended December 31, 2016, 2017, 2018, 2019 and 2020
For the Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Selected Operating Data: | ||||||||||||||||||||
Interest income | $ | 14,172 | $ | 14,332 | $ | 13,673 | $ | 12,711 | $ | 12,075 | ||||||||||
Interest expense | 2,867 | 3,118 | 2,508 | 2,387 | 2,194 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net interest income | 11,305 | 11,214 | 11,165 | 10,324 | 9,881 | |||||||||||||||
Provision for loan losses | 152 | 55 | 83 | 0 | 294 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net interest income after provision for loan losses | 11,153 | 11,159 | 11,082 | 10,324 | 9,587 | |||||||||||||||
Noninterest income | 1,449 | 1,456 | 1,647 | 1,574 | 1,524 | |||||||||||||||
Noninterest expense | 8,099 | 7,863 | 7,844 | 7,531 | 6,939 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income before income tax expense | 4,503 | 4,752 | 4,885 | 4,367 | 4,172 | |||||||||||||||
Income tax expense | 957 | 1,018 | 1,046 | 1,787 | 1,437 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net income | $ | 3,546 | $ | 3,734 | $ | 3,839 | $ | 2,580 | $ | 2,735 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Source: Cullman Bancorp Inc.’s Prospectus
75
EXHIBIT 7
Cullman Savings Bank
Normalized Earnings Trends
Twelve Months Ended December 31, 2020
Twelve Months Ended December 31, 2020 | ||||
(In thousands) | ||||
Net income before taxes | $ | 4,503 | ||
Adjustments: | ||||
None | 0 | |||
|
| |||
Normalized earnings before taxes | 4,503 | |||
Taxes | (957 | ) | ||
|
| |||
Normalized earnings after taxes | $ | 3,546 | ||
|
|
Source: Cullman Savings Bank’s audited financial statements
76
EXHIBIT 8
Performance Indicators
For the Years Ended December 31, 2016, 2017, 2018, 2019 and 2020
Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets | 1.13 | % | 1.26 | % | 1.33 | % | 0.92 | % | 1.06 | % | ||||||||||
Return on average equity | 6.43 | % | 7.17 | % | 7.87 | % | 5.52 | % | 6.03 | % | ||||||||||
Interest rate spread (1) | 3.54 | % | 3.74 | % | 4.06 | % | 3.92 | % | 4.05 | % | ||||||||||
Net interest margin (2) | 3.75 | % | 3.98 | % | 4.16 | % | 4.01 | % | 4.15 | % | ||||||||||
Noninterest expense to average assets | 2.57 | % | 2.66 | % | 2.72 | % | 2.70 | % | 2.68 | % | ||||||||||
Efficiency ratio (3) | 64.27 | % | 62.33 | % | 61.62 | % | 63.30 | % | 62.45 | % | ||||||||||
Average interest-earning assets to average interest-bearing liabilities | 1.18 | % | 1.12 | % | 1.10 | % | 1.10 | % | 1.11 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Average equity to average assets | 17.52 | % | 17.60 | % | 16.88 | % | 16.74 | % | 17.52 | % | ||||||||||
Total capital to risk-weighted assets | N/A | 22.40 | % | 21.55 | % | 22.21 | % | 20.77 | % | |||||||||||
Tier 1 capital to risk-weighted assets | N/A | 21.41 | % | 20.55 | % | 21.16 | % | 19.71 | % | |||||||||||
Common equity tier 1 capital to risk-weighted assets | N/A | 21.41 | % | 20.55 | % | 21.16 | % | 19.71 | % | |||||||||||
Tier 1 capital to average assets | 15.49 | % | 15.86 | % | 15.17 | % | 14.78 | % | 14.44 | % | ||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Allowance for loan losses as a percentage of total loans | 1.01 | % | 0.89 | % | 0.88 | % | 0.92 | % | 0.94 | % | ||||||||||
Allowance for loan losses as percentage of nonperforming loans | 1788.64 | % | 1642.96 | % | 519.95 | % | 367.02 | % | 270.90 | % | ||||||||||
Net (charge-offs) recoveries to average outstanding loans during the year | 0.00 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.03 | % | ||||||||||
Nonperforming loans as a percentage of total loans | 0.06 | % | 0.05 | % | 0.17 | % | 0.25 | % | 0.35 | % | ||||||||||
Nonperforming loans as a percentage of total assets | 0.04 | % | 0.05 | % | 0.14 | % | 0.20 | % | 0.28 | % | ||||||||||
Total nonperforming assets as a percentage of total assets | 0.17 | % | 0.17 | % | 0.19 | % | 0.49 | % | 0.66 | % |
(1) | Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities for the year. |
(2) | Represents net interest income as a percent of average interest-earning asset. |
(3) | Represents noninterest expense divided by the sum of net interest income and noninterest income. |
Source: Cullman Bancorp, Inc.’s Prospectus
77
EXHIBIT 9
Volume/Rate Analysis
For the Years Ended December 31, 2019 vs. 2020
Years Ended December 31, 2020 vs. 2019 | ||||||||||||
Increase (Decrease) Due to | ||||||||||||
Volume | Rate | Total | ||||||||||
(Dollars in thousands) | ||||||||||||
Interest-earning assets: | ||||||||||||
Loans (excluding PPP loans) | $ | (529 | ) | $ | 295 | $ | (234 | ) | ||||
PPP loans | 342 | — | 1 | |||||||||
Securities | (75 | ) | (28 | ) | (103 | ) | ||||||
Federal Home Loan Bank stock | 16 | (36 | ) | (20 | ) | |||||||
Federal funds sold and other | 455 | (600 | ) | (145 | ) | |||||||
|
|
|
|
|
| |||||||
Total interest-earning assets | $ | 209 | $ | (369 | ) | $ | (160 | ) | ||||
|
|
|
|
|
| |||||||
Interest-bearing liabilities: | ||||||||||||
Interest-bearing demand deposits | $ | 165 | $ | (206 | ) | $ | (41 | ) | ||||
Regular savings and other deposits | 13 | (20 | ) | (7 | ) | |||||||
Money market deposits | 2 | (2 | ) | 0 | ||||||||
Certificates of deposits | (62 | ) | (91 | ) | (153 | ) | ||||||
|
|
|
|
|
| |||||||
Total deposits | $ | 118 | $ | (319 | ) | $ | (201 | ) | ||||
Federal Home Loan Bank advances and other borrowings | 139 | (189 | ) | (50 | ) | |||||||
|
|
|
|
|
| |||||||
Total interest-bearing liabilities | 257 | (508 | ) | (251 | ) | |||||||
|
|
|
|
|
| |||||||
Change in net interest income | $ | (48 | ) | $ | 139 | $ | 91 | |||||
|
|
|
|
|
|
Source: Cullman Bancorp, Inc.‘s Prospectus
78
EXHIBIT 10
Yield and Cost Trends
For the Years Ended December 31, 2019 and 2020
For the Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Yield/ Rate | Yield/ Rate | |||||||
Interest-earning assets: | ||||||||
Loans (excluding PPP loans) | 5.54 | % | 5.41 | % | ||||
PPP loans | 3.77 | % | — | |||||
Securities | 2.59 | % | 2.73 | % | ||||
Federal Home Loan Bank stock | 4.88 | % | 6.22 | % | ||||
Fed funds sold | 0.14 | % | 1.98 | % | ||||
Total interest-earning assets | 4.70 | % | 5.08 | % | ||||
Interest-bearing liabilities: | ||||||||
Interest-bearing demand deposits | 0.21 | % | 0.33 | % | ||||
Regular savings and other deposits | 0.24 | % | 0.30 | % | ||||
Money market deposits | 0.31 | % | 0.36 | % | ||||
Certificates of deposit | 1.62 | % | 1.72 | % | ||||
Total interest-bearing deposits | 0.88 | % | 1.05 | % | ||||
Federal Home Loan Bank advances and other borrowings | 2.08 | % | 2.41 | % | ||||
Total interest-bearing liabilities | 1.16 | % | 1.35 | % | ||||
Net interest rate spread (1) | 3.54 | % | 3.74 | % | ||||
|
|
|
| |||||
Net interest margin (2) | 3.75 | % | 3.98 | % | ||||
|
|
|
|
(1) | Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities. |
(2) | Net interest margin represents net interest income divided by average total interest earning assets. |
Source: Cullman Bancorp, Inc.’s Prospectus
79
EXHIBIT 11
Net Portfolio Value
At December 31, 2020
Change in Interest Rates | Estimated EVE (2) | Estimated Increase (Decrease) in EVE | EVE as a Percentage of Present Value of Assets (3) | |||||||||||||||||
$ Amount (2) | % Change | EVE Ratio (4) | Increase/(Decrease) | |||||||||||||||||
(Dollars in thousands) | (Basis Points) | |||||||||||||||||||
+400 | 53,121 | (6,260 | ) | (10.54 | ) | 17.22 | (23 | ) | ||||||||||||
+300 | 55,411 | (3,969 | ) | (6.68 | ) | 17.51 | 6 | |||||||||||||
+200 | 57,334 | (2,047 | ) | (3.45 | ) | 17.66 | 21 | |||||||||||||
+100 | 58,678 | (702 | ) | (1.18 | ) | 17.64 | 19 | |||||||||||||
+50 | 59,121 | (260 | ) | (0.44 | ) | 17.57 | 12 | |||||||||||||
— | 59,381 | — | — | 17.45 | — | |||||||||||||||
-50 | 58,998 | (383 | ) | (0.64 | ) | 17.14 | (30 | ) | ||||||||||||
-100 | 57,594 | (1,787 | ) | (3.01 | ) | 16.55 | (89 | ) | ||||||||||||
-200 | 53,793 | (5,588 | ) | (9.41 | ) | 15.11 | (234 | ) |
(1) | Assumes an immediate uniform change in interest rates at all maturities. |
(2) | EVE is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. |
(3) | Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets. |
(4) | EVE Ratio represents EVE divided by the present value of assets. |
Source: Cullman Bancorp, Inc.’s Prospectus
80
EXHIBIT 12
Loan Portfolio Composition
At December 31, 2019 and 2020
(Dollars in thousands)
At December 31, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||
Real estate loans: | ||||||||||||||||
One- to four-family residential | $ | 114,766 | 48.98 | % | $ | 127,362 | 50.73 | % | ||||||||
Multi-family | 4,867 | 2.08 | % | $ | 4,540 | 1.81 | % | |||||||||
Commercial | 77,841 | 33.22 | % | $ | 74,167 | 29.54 | % | |||||||||
Construction | 5,504 | 2.35 | % | 8,712 | 3.47 | % | ||||||||||
Commercial | 20,340 | 8.68 | % | 28,572 | 11.38 | % | ||||||||||
Consumer: | ||||||||||||||||
Home equity loans and lines of credit | 3,520 | 1.50 | % | 4,966 | 1.98 | % | ||||||||||
Other consumer | 2,347 | 1.00 | % | 2,718 | 1.08 | % | ||||||||||
Payroll Protection Program loans | 5,145 | 2.20 | % | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
234,330 | 100.0 | % | 251,037 | 100.0 | % | |||||||||||
Less: | ||||||||||||||||
Net deferred loan fees | �� | (170 | ) | (34 | ) | |||||||||||
Allowance for loan losses | (2,361 | ) | (2,218 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total loans, | $ | 231,799 | $ | 248,785 | ||||||||||||
|
|
|
|
Source: Cullman Bancorp, Inc.‘s Prospectus
81
EXHIBIT 13
Loan Maturity Schedule
At December 31, 2020
Amounts due in: | One- to Four- Family Owner- Residential Real Estate | Multi-Family Real Estate | Commercial Real Estate | Construction | Commercial | Consumer | Payroll Protection Program | Total | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
One year or less | $ | 1,696 | $ | 734 | $ | 10,719 | $ | 5,201 | $ | 8,191 | $ | 1,288 | $ | — | $ | 27,829 | ||||||||||||||||
More than one to five years | 7,608 | 1,942 | 32,064 | 303 | 6,197 | 1,214 | 5,145 | 54,473 | ||||||||||||||||||||||||
More than five to 15 years | 15,627 | 2,191 | 34,159 | — | 5,857 | 3,365 | — | 61,199 | ||||||||||||||||||||||||
More than 15 years | 89,835 | — | 899 | — | 95 | — | — | 90,829 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | $ | 114,766 | $ | 4,867 | $ | 77,841 | $ | 5,504 | $ | 20,340 | $ | 5,867 | $ | 5,145 | $ | 234,330 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed and Adjustable-Rate Loan Schedule
Due After December 31, 2021 | ||||||||||||
Fixed | Adjustable | Total | ||||||||||
(Dollars in thousands) | ||||||||||||
Real estate loans: | ||||||||||||
One- to four-family residential | $ | 108,000 | $ | 5,069 | $ | 113,069 | ||||||
Multi-family | 3,910 | 222 | 4,132 | |||||||||
Commercial loans | 64,373 | 2,749 | 67,122 | |||||||||
Construction | 303 | — | 303 | |||||||||
Consumer loans: | 12,149 | — | 12,149 | |||||||||
Home equity loans and lines of credit | 3,250 | 248 | 3,498 | |||||||||
Other consumer | 1,081 | — | 1,081 | |||||||||
Payroll Protection Program loans | 5,142 | — | 5,142 | |||||||||
|
|
|
|
|
| |||||||
Total | 198,208 | 8,288 | 206,496 |
Source: Cullman Bancorp, Inc.‘s Prospectus
82
EXHIBIT 14
Loan Delinquencies
At December 31, 2019 and 2020
At December 31, | ||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||
One- to four-family residential | $ | 1,723 | $ | 370 | $ | 104 | $ | 1,447 | $ | 1,151 | $ | 85 | ||||||||||||
Multi-family | — | — | — | — | — | — | ||||||||||||||||||
Commercial | 437 | — | — | — | — | — | ||||||||||||||||||
Construction | — | — | — | — | — | — | ||||||||||||||||||
Commercial loans | 8 | — | — | 113 | 4 | — | ||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||
Home equity loans and lines of credit | — | — | — | — | — | — | ||||||||||||||||||
Other consumer | — | 33 | — | 21 | — | — | ||||||||||||||||||
Payroll Protection Program loans | 2 | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 2,170 | 403 | 104 | 1,581 | 1,155 | 85 |
Source: Culman Bancorp, Inc.‘s Prospectus
83
EXHIBIT 15
Nonperforming Assets
At December 31, 2019 and 2020
At December 31, | ||||||||
2020 | 2019 | |||||||
(Dollars in thousands) | ||||||||
Nonaccrual loans: | ||||||||
Real estate loans: | ||||||||
One- to four-family residential | $ | 18 | $ | 23 | ||||
Multi-family | — | — | ||||||
Commercial | — | — | ||||||
Construction | — | — | ||||||
Commercial and industrial loans | — | 27 | ||||||
Consumer loans: | ||||||||
Home equity loans and lines of credit | — | — | ||||||
Other consumer | — | — | ||||||
|
|
|
| |||||
Total nonaccrual loans | 18 | 50 | ||||||
|
|
|
| |||||
Accruing loans past due 90 days or more | 104 | 85 | ||||||
Real estate owned: | ||||||||
One- to four-family residential | $ | 108 | $ | 60 | ||||
Multi-family | — | — | ||||||
Commercial | 326 | 326 | ||||||
Construction | — | — | ||||||
|
|
|
| |||||
Total real estate owned | 434 | 386 | ||||||
|
|
|
| |||||
Total nonperforming assets | 566 | 521 | ||||||
Total accruing troubled debt restructured loans | $ | 2,319 | $ | 2,457 | ||||
Total nonperforming loans to total loans | 0.06 | % | 0.05 | % | ||||
Total nonaccruing loans to total loans | 0.01 | % | 0.02 | % | ||||
Total nonperforming assets to total assets | 0.17 | % | 0.17 | % |
Source: Cullman Bancorp, Inc.‘s Prospectus
84
EXHIBIT 16
Classified Assets
At December 31, 2019 and 2020
(Dollars in thousands)
At December 31, | ||||||||
2020 | 2019 | |||||||
Substandard assets | $ | 8,439 | $ | 2,593 | ||||
Doubtful assets | — | — | ||||||
Loss assets | — | — | ||||||
|
|
|
| |||||
Total classified assets | $ | 8,439 | $ | 2,593 | ||||
|
|
|
| |||||
Special mention assets | $ | 112 | $ | — | ||||
Foreclosed real estate | $ | 434 | $ | 386 |
Source: Cullman Bancorp, Inc.‘s Prospectus
85
EXHIBIT 17
Allowance for Loan Losses
For the Years Ended December 31, 2019 and 2020
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Allowance for loan losses at beginning of year | $ | 2,218 | $ | 2,163 | ||||
Provision for loan losses | 152 | 55 | ||||||
Charge-offs: | — | — | ||||||
Real estate loans: | ||||||||
One- to four-family residential | — | — | ||||||
Multi-family | — | — | ||||||
Commercial | — | — | ||||||
Construction | — | — | ||||||
Commercial and industrial loans | — | — | ||||||
Consumer loans: | ||||||||
Home equity loans and lines of credit | — | — | ||||||
Other consumer | (20 | ) | (1 | ) | ||||
Payroll Protection Program loans | — | — | ||||||
|
|
|
| |||||
Total charge-offs | (20 | ) | (1 | ) | ||||
Recoveries: | ||||||||
Real estate loans: | ||||||||
One- to four-family residential | 5 | 1 | ||||||
Multi-family | — | — | ||||||
Commercial | — | — | ||||||
Construction | — | — | ||||||
Commercial and industrial loans | — | — | ||||||
Consumer loans: | ||||||||
Home equity loans and lines of credit | — | — | ||||||
Other consumer | 6 | — | ||||||
Payroll Protection Program loans | — | — | ||||||
|
|
|
| |||||
Total recoveries | 11 | 1 | ||||||
Net (charge-offs) recoveries | (9 | ) | — | |||||
Allowance at end of year | 2,361 | 2,218 | ||||||
Ratios: | ||||||||
Allowance to nonperforming loans | 1788.64 | % | 1642.96 | % | ||||
Allowance to total loans outstanding at the end of the year | 1.01 | % | 0.88 | % | ||||
Net (charge-offs) recoveries to average loans outstanding during the year | 0.00 | % | 0.00 | % |
Source: Cullman Bancorp, Inc’s Prospectus
86
EXHIBIT 18
Investment Portfolio Composition
At December 31, 2020
One Year or Less | More Than One Year to Five Years | More Than Five Years to Ten Years | More Than Ten Years | |||||||||||||||||||||||||||||
Amortized Cost | Weighted Ave. Yield | Amortized Cost | Weighted Ave. Yield | Amortized Cost | Weighted Ave. Yield | Amortized Cost | Weighted Ave. Yield | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal securities-taxable | $ | — | — | % | $ | 430 | 2.87 | % | $ | 2,421 | 3.54 | % | $ | 8,235 | 2.43 | % | ||||||||||||||||
Municipal securities-tax-exempt | 365 | 1.87 | % | 1,250 | 2.61 | % | 904 | 2.20 | % | 290 | 2.38 | % | ||||||||||||||||||||
Residential mortgage-backed, government-sponsored enterprise | — | — | — | — | 765 | 2.14 | % | 2,058 | 1.97 | % | ||||||||||||||||||||||
SBA-guaranteed debenture | — | — | — | — | 1,471 | 1.96 | % | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total | $ | 365 | 1.87 | % | $ | 1,680 | 2.68 | % | $ | 5,561 | 2.71 | % | $ | 10,583 | 2.34 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Weighted Ave. Yield | ||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
Municipal securities-taxable | $ | 11,086 | $ | 11,612 | 2.69 | % | ||||||||||||||||||||||||||
Municipal securities-tax-exempt | 2,809 | 2,850 | 2.36 | % | ||||||||||||||||||||||||||||
Residential mortgage-backed, government-sponsored enterprise | 2,823 | 2,890 | 2.02 | % | ||||||||||||||||||||||||||||
SBA-guaranteed debenture | 1,471 | 1,523 | 1.96 | % | ||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||
Total | $ | 18,189 | $ | 18,875 | 2.47 | % | ||||||||||||||||||||||||||
|
|
|
|
Source: Cullman Bancorp, Inc.‘s Prospectus
87
EXHIBIT 19
Mix of Deposit Accounts
For the Years Ended December 31, 2019 and 2020
For the Years Ended December 31, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||
Deposit type: | ||||||||||||||||
Noninterest-bearing demand deposits | $ | 14,374 | 6.63 | % | $ | 10,415 | 5.51 | % | ||||||||
Interest-bearing demand deposits | 69,758 | 32.15 | % | 51,766 | 27.41 | % | ||||||||||
Regular savings and other deposits | 41,404 | 19.08 | % | 28,727 | 15.21 | % | ||||||||||
Money market deposits | 5,383 | 2.48 | % | 4,046 | 2.14 | % | ||||||||||
Certificates of deposit | 86,044 | 39.66 | % | 93,934 | 49.73 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total deposits | $ | 216,963 | 100.00 | % | $ | 188,888 | 100.00 | % | ||||||||
|
|
|
|
|
|
|
|
Source: Cullman Bancorp, Inc.’s Prospectus
88
EXHIBIT 20
Certificates of Deposit By Maturity
At December 31, 2020
At December 31, 2020 | ||||
(In thousands) | ||||
Maturity Period: | ||||
Three months or less | $ | 5,417 | ||
Over three months through six months | 4,730 | |||
Over six months through twelve months | 6,245 | |||
Over twelve months | 18,718 | |||
|
| |||
Total | $ | 35,110 | ||
|
|
Source: Cullman Bancorp, Inc.’s Prospectus
89
EXHIBIT 21
DIRECTORS AND MANAGEMENT OF THE BANK
At December 31, 2020
Name (1) | Position(s) Held with the Bank | Age | Director | Term | ||||
John A. Riley, III | Chairman of the Board, President & Chief Executive Officer | 56 | 2000 | 2023 | ||||
Gregory T. Barksdale | Director | 54 | 2013 | 2021 | ||||
Chad T. Burks | Director | 44 | 2019 | 2023 | ||||
Dr. Paul D. Bussman | Director | 64 | 1994 | 2021 | ||||
Nancy McClellan | Director | 63 | 1999 | 2022 | ||||
Lynne Morton | Director | 44 | 2020 | 2022 | ||||
Robin Parson | Director | 54 | 2019 | 2023 | ||||
Executive Officers Who Are Not Directors | ||||||||
T’aira Ugarkovich | Executive Vice President | 36 | — | — | ||||
Katrina Stephens | Senior Vice President/Chief Financial Officer | 37 | — | — |
(1) | The mailing address for each person listed is 216 Second Avenue, S.W., Cullman, Alabama 35055 |
Source: Cullman Bancorp, Inc.’s Prospectus
90
EXHIBIT 22
Key Demographic Data and Trends
Cullman County, Alabama and the United States
2000, 2010 and 2025
2000 | 2010 | % Change | 2025 | % Change | ||||||||||||||||
Population | ||||||||||||||||||||
Cullman County | 77,454 | 80,406 | 3.8 | % | 85,832 | 6.7 | % | |||||||||||||
Alabama | 4,447,032 | 4,779,736 | 7.5 | % | 5,103,695 | 6.8 | % | |||||||||||||
United States | 281,422,025 | 308,745,538 | 9.7 | % | 338,091,708 | 9.5 | % | |||||||||||||
Households | ||||||||||||||||||||
Cullman County | 30,696 | 31,864 | 3.8 | % | 34,915 | 9.6 | % | |||||||||||||
Alabama | 1,737,046 | 1,883,791 | 8.4 | % | 2,030,020 | 7.8 | % | |||||||||||||
United States | 105,480,443 | 116,716,292 | 10.7 | % | 128,694,431 | 10.3 | % | |||||||||||||
Per Capita Income | ||||||||||||||||||||
Cullman County | $ | 16,758 | $ | 20,869 | 24.5 | % | 30,141 | 44.4 | % | |||||||||||
Alabama | 17,941 | 23,406 | 30.5 | % | 32,595 | 39.3 | % | |||||||||||||
United States | 21,242 | 28,088 | 32.2 | % | 39,979 | 42.3 | % | |||||||||||||
Median Household Income | ||||||||||||||||||||
Cullman County | $ | 32,582 | $ | 38,168 | 17.1 | % | $ | 60,029 | 57.3 | % | ||||||||||
Alabama | 34,250 | 41,539 | 21.3 | % | 59,667 | 43.6 | % | |||||||||||||
United States | 42,257 | 51,362 | 21.5 | % | 63,968 | 24.5 | % |
Source: Census Bureau and Demographics Now
91
EXHIBIT 23
Key Housing Data
Cullman County, alabama and the United States
2000 & 2010
2000 | 2010 | |||||||
Occupied Housing Units | ||||||||
Cullman County | 30,558 | 31,445 | ||||||
Alabama | 1,737,046 | 1,883,791 | ||||||
United States | 105,480,101 | 116,716,292 | ||||||
Occupancy Rate | ||||||||
Cullman County | ||||||||
Owner-Occupied | 78.0 | % | 70.1 | % | ||||
Renter-Occupied | 22.0 | % | 29.9 | % | ||||
Alabama | ||||||||
Owner-Occupied | 72.5 | % | 69.7 | % | ||||
Renter-Occupied | 27.5 | % | 30.3 | % | ||||
United States | ||||||||
Owner-Occupied | 66.2 | % | 65.4 | % | ||||
Renter-Occupied | 33.8 | % | 34.6 | % | ||||
Median Housing Values | ||||||||
Cullman County | $ | 85,000 | $ | 87,000 | ||||
Alabama | 85,100 | 123,900 | ||||||
United States | 119,600 | 186,200 | ||||||
2020 | ||||||||
Median Housing Value Estimates | ||||||||
Cullman County | $ | 136,448 | ||||||
Alabama | 153,094 | |||||||
United States | 221,068 | |||||||
2000 | 2010 | |||||||
Median Rent | ||||||||
Cullman County | $ | 398 | $ | 585 | ||||
Alabama | 447 | 667 | ||||||
United States | 602 | 871 |
Source: U.S. Census Bureau and American Community Survey (Census Bureau)
92
EXHIBIT 24
Major Sources of Employment by Industry Group
Cullman County, Alabama and the United States
2000, 2010 and 2020
2000 | ||||||||||||
Industry Group | Cullman County | Alabama | United States | |||||||||
Agriculture/Mining | 4.4 | % | 1.9 | % | 1.9 | % | ||||||
Construction | 8.4 | % | 7.6 | % | 6.8 | % | ||||||
Manufacturing | 23.0 | % | 18.4 | % | 14.1 | % | ||||||
Wholesale/Retail | 18.6 | % | 15.8 | % | 15.3 | % | ||||||
Transportation/Utilities | 5.7 | % | 5.3 | % | 5.2 | % | ||||||
Information | 1.6 | % | 2.2 | % | 3.1 | % | ||||||
Finance, Insurance & Real Estate | 4.0 | % | 5.8 | % | 6.9 | % | ||||||
Services | 34.3 | % | 43.0 | % | 46.7 | % | ||||||
2010 | ||||||||||||
Cullman County | Alabama | United States | ||||||||||
Agriculture/Mining | 4.0 | % | 1.9 | % | 1.9 | % | ||||||
Construction | 9.4 | % | 7.8 | % | 6.2 | % | ||||||
Manufacturing | 18.4 | % | 14.5 | % | 10.4 | % | ||||||
Wholesale/Retail | 15.8 | % | 15.1 | % | 14.5 | % | ||||||
Transportation/Utilities | 6.7 | % | 5.2 | % | 4.9 | % | ||||||
Information | 1.4 | % | 1.9 | % | 2.2 | % | ||||||
Finance, Insurance & Real Estate | 4.7 | % | 5.8 | % | 6.7 | % | ||||||
Services | 39.6 | % | 47.8 | % | 53.2 | % | ||||||
2020 Estimate | ||||||||||||
Cullman County | Alabama | United States | ||||||||||
Agriculture/Mining | 4.9 | % | 1.7 | % | 1.8 | % | ||||||
Construction | 3.9 | % | 4.6 | % | 4.5 | % | ||||||
Manufacturing | 11.9 | % | 11.7 | % | 9.8 | % | ||||||
Wholesale/Retail | 21.7 | % | 21.9 | % | 21.9 | % | ||||||
Transportation/Utilities | 9.8 | % | 5.8 | % | 5.4 | % | ||||||
Information | n/a | n/a | n/a | |||||||||
Finance, Insurance & Real Estate | 3.7 | % | 5.1 | % | 6.4 | % | ||||||
Services | 44.1 | % | 49.1 | % | 50.2 | % |
Source: Bureau of the Census (2000 and 2010) & American Community Survey (2020)
93
EXHIBIT 25
Unemployment Rates
Cullman County, Alabama and the United States
For the Years 2016 through 2020
Location | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Cullman County | 5.0 | % | 3.7 | % | 3.2 | % | 2.6 | % | 4.4 | % | ||||||||||
Alabama | 5.8 | % | 4.4 | % | 3.9 | % | 3.0 | % | 6.1 | % | ||||||||||
United States | 4.9 | % | 4.4 | % | 3.9 | % | 3.7 | % | 8.1 | % |
Source: Local Area Unemployment Statistics - U.S. Bureau of Labor Statistics
94
EXHIBIT 26
Market Share of Deposits
Cullman County
June 30, 2020
Cullman County Deposits ($000) | Cullman Deposits ($000) | Cullman Share (%) | ||||||||||
Banks | $ | 1,783,135 | — | — | ||||||||
Thrifts | 213,066 | $ | 213,066 | 100.0 | % | |||||||
|
|
|
|
|
| |||||||
Total | $ | 1,996,201 | $ | 213,066 | 10.7 | % |
Source: FDIC
95
EXHIBIT 27
National Interest Rates by Quarter
2016 - 2020
1st Qtr. 2016 | 2nd Qtr. 2016 | 3rd Qtr. 2016 | 4th Qtr. 2016 | |||||||||||||
Prime Rate | 3.50 | % | 3.50 | % | 3.50 | % | 3.75 | % | ||||||||
90-Day Treasury Bills | 0.24 | % | 0.30 | % | 0.32 | % | 0.51 | % | ||||||||
1-Year Treasury Bills | 0.53 | % | 0.58 | % | 0.57 | % | 0.81 | % | ||||||||
30-Year Treasury Notes | 2.61 | % | 2.26 | % | 2.40 | % | 2.97 | % | ||||||||
1st Qtr. 2017 | 2nd Qtr. 2017 | 3rd Qtr. 2017 | 4th Qtr. 2017 | |||||||||||||
Prime Rate | 4.00 | % | 4.25 | % | 4.25 | % | 4.50 | % | ||||||||
90-Day Treasury Bills | 0.92 | % | 1.01 | % | 1.04 | % | 1.37 | % | ||||||||
1-Year Treasury Bills | 1.17 | % | 1.24 | % | 1.31 | % | 1.76 | % | ||||||||
30-Year Treasury Notes | 2.92 | % | 2.84 | % | 2.86 | % | 2.74 | % | ||||||||
1st Qtr. 2018 | 2nd Qtr. 2018 | 3rd Qtr. 2018 | 4th Qtr. 2018 | |||||||||||||
Prime Rate | 4.75 | % | 5.00 | % | 5.25 | % | 5.50 | % | ||||||||
90-Day Treasury Bills | 1.74 | % | 1.89 | % | 2.15 | % | 2.40 | % | ||||||||
1-Year Treasury Bills | 2.09 | % | 2.33 | % | 2.57 | % | 2.63 | % | ||||||||
30-Year Treasury Notes | 2.97 | % | 2.98 | % | 3.19 | % | 3.02 | % | ||||||||
1st Qtr. 2019 | 2nd Qtr. 2019 | 3rd Qtr. 2019 | 4th Qtr. 2019 | |||||||||||||
Prime Rate | 5.50 | % | 5.50 | % | 5.50 | % | 4.75 | % | ||||||||
90-Day Treasury Bills | 2.39 | % | 2.18 | % | 1.84 | % | 1.52 | % | ||||||||
1-Year Treasury Bills | 2.50 | % | 1.96 | % | 1.71 | % | 1.59 | % | ||||||||
30-Year Treasury Notes | 2.94 | % | 2.57 | % | 1.94 | % | 2.25 | % | ||||||||
1st Qtr. 2020 | 2nd Qtr. 2020 | 3rd Qtr. 2020 | 4th Qtr. 2020 | |||||||||||||
Prime Rate | 3.25 | % | 3.25 | % | 3.25 | % | 3.25 | % | ||||||||
90-Day Treasury Bills | 0.11 | % | 0.16 | % | 0.10 | % | 0.09 | % | ||||||||
1-Year Treasury Bills | 0.17 | % | 0.16 | % | 0.12 | % | 0.10 | % | ||||||||
30-Year Treasury Notes | 1.15 | % | 1.18 | % | 1.48 | % | 1.67 | % |
Source: The Wall Street Journal
96
EXHIBIT 28
Page 1
KELLER & COMPANY
Dublin, Ohio
614-766-1426
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF DECEMBER 31, 2020
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
Per Share | Pricing Ratios | |||||||||||||||||||||||||||||||||||||||||||||
52 Week | Earnings | 12 Month | Price/Net | Price/Core | Price/ | Price/Tang. | Price/ | |||||||||||||||||||||||||||||||||||||||
Price | �� | Change | (EPS) | Assets | Div. | Earnings | Earnings | Book Value | Book Value | Assets | ||||||||||||||||||||||||||||||||||||
State | Exchange | ($) | (%) | ($) | ($) | ($) | (X) | (X) | (X) | (X) | (X) | |||||||||||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP | IL | OTC BB | 3.65 | 114.7 | 2.51 | 87.03 | 0.00 | 1.45 | 1.43 | 35.51 | 35.51 | 4.19 | |||||||||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP | IN | OTC BB | 16.00 | (7.2 | ) | 1.86 | 265.87 | 0.52 | 8.60 | 7.44 | 68.67 | 70.67 | 6.02 | ||||||||||||||||||||||||||||||||
AX | AXOS FINANCIAL | CA | NYSE | 37.34 | 23.3 | 3.30 | 225.99 | 0.00 | 11.32 | 11.32 | 178.75 | 200.64 | 16.52 | |||||||||||||||||||||||||||||||||
BCTF | BANCORP 34 | NM | NASDAQ | 11.59 | (24.1 | ) | 0.59 | 145.26 | 0.00 | 19.64 | 20.33 | 86.88 | 87.27 | 7.98 | ||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | NASDAQ | 8.86 | (32.3 | ) | 0.89 | 107.74 | 0.87 | 9.96 | 11.97 | 80.69 | 80.84 | 8.22 | ||||||||||||||||||||||||||||||||
BYFC | BROADWAY FINANCIAL CORP | CA | NASDAQ | 1.84 | 19.5 | 0.02 | 17.73 | 0.07 | 92.00 | 92.00 | 102.79 | 102.79 | 10.38 | |||||||||||||||||||||||||||||||||
CARV | CARVER BANCORP | NY | NASDAQ | 6.62 | 172.4 | (1.70 | ) | 235.41 | 0.00 | NM | NM | 40.76 | 40.89 | 2.81 | ||||||||||||||||||||||||||||||||
CASH | META FINANCIAL GROUP | SD | NASDAQ | 36.18 | (0.9 | ) | 3.05 | 177.32 | 0.21 | 11.86 | 11.27 | 146.72 | 251.60 | 20.40 | ||||||||||||||||||||||||||||||||
CCSB | COMM SAVINGS BANCORP | OH | OTC BB | 13.00 | (13.3 | ) | (0.18 | ) | 130.18 | 0.00 | NM | NM | 71.47 | 71.63 | 9.99 | |||||||||||||||||||||||||||||||
CFFN | CAPITOL FEDERAL FINANCIAL | KS | NASDAQ | 12.38 | (9.8 | ) | 0.46 | 68.43 | 0.68 | 26.91 | 26.34 | 133.84 | 135.45 | 18.09 | ||||||||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP | OH | OTC PINK | 17.25 | (4.7 | ) | 1.97 | 267.59 | 0.48 | 8.76 | 6.90 | 79.09 | 84.31 | 6.45 | ||||||||||||||||||||||||||||||||
CNNB | CINCINNATI FEDERAL | OH | NASDAQ | 11.95 | 16.7 | 0.39 | 77.88 | 0.00 | 30.64 | 18.38 | 108.24 | 114.57 | 15.34 | |||||||||||||||||||||||||||||||||
CTUY | CENTURY NEXT FINANCIAL CORP | LA | OTC BB | 26.00 | (25.7 | ) | 3.53 | 300.07 | 0.00 | 7.37 | 8.25 | 74.03 | 79.71 | 8.66 | ||||||||||||||||||||||||||||||||
DCOM | DIME COMMUNITY BANCSHARES | NY | NASDAQ | 15.78 | (24.5 | ) | 1.34 | 200.29 | 0.67 | 11.78 | 12.83 | 75.14 | 81.89 | 7.88 | ||||||||||||||||||||||||||||||||
EBSB | MERIDIAN BANCORP | MA | NASDAQ | 14.89 | (25.9 | ) | 1.22 | 125.29 | 0.31 | 12.20 | 13.06 | 104.27 | 107.51 | 11.88 | ||||||||||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP | OH | NASDAQ | 16.46 | 3.8 | 0.84 | 99.59 | 0.00 | 19.60 | 15.24 | 109.37 | 109.37 | 16.53 | |||||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | NASDAQ | 11.95 | (4.2 | ) | 0.90 | 131.00 | 0.00 | 13.28 | 11.72 | 99.25 | 108.54 | 9.12 | ||||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | NASDAQ | 11.51 | (23.8 | ) | 1.07 | 192.10 | 0.76 | 10.76 | 10.56 | 67.39 | 87.20 | 5.99 | ||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | PA | NASDAQ | 15.02 | (11.4 | ) | 1.30 | 172.66 | 0.91 | 11.55 | 14.73 | 87.78 | 95.43 | 8.70 | ||||||||||||||||||||||||||||||||
FBC | FLAGSTAR BANCORP | MI | NYSE | 40.62 | 6.2 | 7.72 | 515.76 | 0.19 | 5.26 | 5.18 | 105.75 | 135.63 | 7.88 | |||||||||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA | IN | OTC BB | 17.04 | (12.2 | ) | 1.13 | 272.95 | 0.73 | 15.08 | 13.11 | 67.33 | 81.18 | 6.24 | ||||||||||||||||||||||||||||||||
FCAP | FIRST CAPITAL | IN | NASDAQ | 63.66 | (12.8 | ) | 2.82 | 279.14 | 0.80 | 22.57 | 23.07 | 213.98 | 230.49 | 22.81 | ||||||||||||||||||||||||||||||||
FCPB | FIRST CAPITAL BANCSHARES | NC | OTC PINK | 6.50 | (7.1 | ) | (0.12 | ) | 401.96 | 0.00 | NM | NM | NM | NM | 1.62 | |||||||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | OTC PINK | 100.00 | 150.0 | 5.28 | 1,398.51 | 0.00 | 18.94 | 24.10 | 64.48 | 65.44 | 7.15 | |||||||||||||||||||||||||||||||||
FFBW | FFBW, INC | WI | NASDAQ | 10.01 | (13.3 | ) | 0.26 | 37.07 | 0.00 | 38.50 | 35.75 | 102.35 | 102.46 | 27.00 |
97
Page 2
KELLER & COMPANY
Dublin, Ohio
614-766-1426
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF DECEMBER 31, 2020
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
Per Share | Pricing Ratios | |||||||||||||||||||||||||||||||||||||||||||||
52 Week | Earnings | 12 Month | Price/Net | Price/Core | Price/ | Price/Tang. | Price/ | |||||||||||||||||||||||||||||||||||||||
Price | Change | (EPS) | Assets | Div. | Earnings | Earnings | Book Value | Book Value | Assets | |||||||||||||||||||||||||||||||||||||
State | Exchange | ($) | (%) | ($) | ($) | ($) | (X) | (X) | (X) | (X) | (X) | |||||||||||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL | OH | OTC PINK | 10.29 | 21.1 | 0.42 | 95.93 | 0.28 | 24.50 | 46.77 | 89.56 | 89.56 | 10.73 | |||||||||||||||||||||||||||||||||
FSBW | FS BANCORP | WA | NASDAQ | 54.75 | (14.2 | ) | 6.81 | 483.80 | 4.65 | 8.04 | 6.79 | 107.00 | 117.24 | 11.32 | ||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | NASDAQ | 64.40 | (4.0 | ) | 10.00 | 741.21 | 0.00 | 6.44 | 4.54 | 90.41 | 115.08 | 8.69 | ||||||||||||||||||||||||||||||||
FSGB | FIRST FEDERAL OF SOUTH CAROLINA | SC | OTC PINK | 13.56 | 8.5 | 0.03 | 4.83 | 0.00 | NM | NM | NM | NM | NM | |||||||||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP | IL | OTC BB | 30.25 | (8.2 | ) | 2.96 | 474.29 | 0.00 | 10.22 | 9.39 | 67.87 | 73.44 | 6.38 | ||||||||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FINANCIAL | PA | OTC PINK | 21.50 | (12.2 | ) | 2.13 | 228.45 | 1.47 | 10.09 | 10.29 | 102.53 | 102.53 | 9.41 | ||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | LA | NASDAQ | 28.88 | (19.2 | ) | 2.40 | 314.40 | 1.74 | 12.03 | 13.13 | 95.41 | 95.41 | 9.19 | ||||||||||||||||||||||||||||||||
HIFS | HINGHAM INSTITUTION FOR SAVINGS | MA | NASDAQ | 217.99 | 3.7 | 18.21 | 1,272.49 | 2.31 | 11.97 | 10.83 | 167.38 | 167.38 | 17.13 | |||||||||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | OTC BB | 30.01 | (16.4 | ) | 2.56 | 174.63 | 1.78 | 11.72 | 11.68 | 155.82 | 157.62 | 17.18 | ||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | NASDAQ | 17.22 | (18.0 | ) | 1.70 | 185.59 | 1.03 | 10.13 | 9.16 | 94.20 | 98.40 | 9.28 | ||||||||||||||||||||||||||||||||
HONE | HARBORONE BANCORP | MA | NASDAQ | 10.82 | (1.5 | ) | 0.49 | 75.88 | 0.00 | 22.08 | 22.08 | 112.59 | 135.42 | 14.26 | ||||||||||||||||||||||||||||||||
HRGG | HERITAGE NOLA BANCORP | LA | OTC PINK | 12.05 | (5.9 | ) | 0.37 | 95.09 | 0.00 | 32.57 | 30.90 | 92.20 | 95.48 | 12.67 | ||||||||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN | WI | OTC PINK | 13.99 | 30.1 | 0.77 | 197.77 | 0.00 | 18.17 | 14.13 | 71.74 | 71.74 | 7.07 | |||||||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | NASDAQ | 22.06 | (4.2 | ) | 1.35 | 224.05 | 1.23 | 16.34 | 18.08 | 87.06 | 87.82 | 9.85 | ||||||||||||||||||||||||||||||||
KRNY | KEARNY FINANCIAL CORP | NJ | NASDAQ | 10.56 | (23.6 | ) | 0.50 | 81.67 | 0.29 | 21.12 | 22.47 | 84.08 | 104.04 | 12.93 | ||||||||||||||||||||||||||||||||
KSBI | KS BANCORP | NC | OTC BB | 26.50 | (5.2 | ) | 3.90 | 431.58 | 0.89 | 6.79 | 6.59 | 67.60 | 67.60 | 6.14 | ||||||||||||||||||||||||||||||||
LSFG | LIFESTORE FINANCIAL GROUP | NC | OTC PINK | 38.00 | (3.8 | ) | 3.26 | 345.52 | 0.29 | 11.66 | 10.38 | 100.61 | 103.83 | 11.00 | ||||||||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL | NE | OTC PINK | 29.15 | 4.1 | 2.58 | 165.75 | 1.29 | 11.30 | 12.79 | 98.98 | 102.64 | 17.59 | |||||||||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | OTC PINK | 12.01 | (32.3 | ) | (1.07 | ) | 319.47 | 0.00 | NM | NM | 41.70 | 41.70 | 3.76 | |||||||||||||||||||||||||||||||
MLGF | MALAGA FINANCIAL CORPORATION | CA | OTC BB | 23.50 | 2.2 | 2.53 | 185.73 | 1.12 | 9.29 | 8.87 | 98.95 | 98.95 | 12.65 | |||||||||||||||||||||||||||||||||
MSVB | MID-SOUTHERN BANCORP, INC | IN | NASDAQ | 14.50 | 8.0 | 0.37 | 65.52 | 0.06 | 39.19 | 38.16 | 117.03 | 117.03 | 22.13 | |||||||||||||||||||||||||||||||||
NASB | NASB FINANCIAL | MO | OTC BB | 65.50 | 49.2 | 10.67 | 343.74 | 2.15 | 6.14 | 4.65 | 136.09 | 142.33 | 19.06 | |||||||||||||||||||||||||||||||||
NFBK | NORTHFIELD BANCORP | NJ | NASDAQ | 12.22 | (27.9 | ) | 0.82 | 134.85 | 0.51 | 14.90 | 15.09 | 66.89 | 70.84 | 9.06 | ||||||||||||||||||||||||||||||||
NWBI | NORTHWEST BANCSHARES | PA | NASDAQ | 12.61 | (24.2 | ) | 0.61 | 130.49 | 0.82 | 20.67 | 21.02 | 87.09 | 118.96 | 9.66 | ||||||||||||||||||||||||||||||||
NWIN | NORTHWEST INDIANA BANCORP | IN | OTC BB | 36.10 | (21.4 | ) | 3.92 | 426.98 | 0.98 | 9.21 | 9.58 | 84.84 | 95.18 | 8.45 |
98
Page 3
KELLER & COMPANY
Dublin, Ohio
614-766-1426
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF DECEMBER 31, 2020
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
Per Share | Pricing Ratios | |||||||||||||||||||||||||||||||||||||||||||||
52 Week | Earnings | 12 Month | Price/Net | Price/Core | Price/ | Price/Tang. | Price/ | |||||||||||||||||||||||||||||||||||||||
Price | Change | (EPS) | Assets | Div. | Earnings | Earnings | Book Value | Book Value | Assets | |||||||||||||||||||||||||||||||||||||
State | Exchange | ($) | (%) | ($) | ($) | ($) | (X) | (X) | (X) | (X) | (X) | |||||||||||||||||||||||||||||||||||
NYCB | NEW YORK COMMUNITY BANCORP | NY | NYSE | 10.48 | (12.8 | ) | 0.91 | 118.41 | 0.68 | 11.52 | 11.52 | 72.18 | 112.81 | 8.85 | ||||||||||||||||||||||||||||||||
OCFC | OCEANFIRST FINANCIAL CORP | NJ | NASDAQ | 18.70 | (26.8 | ) | 0.89 | 193.19 | 0.66 | 21.01 | 22.26 | 77.24 | 120.65 | 9.68 | ||||||||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP | IL | OTC BB | 14.60 | 5.6 | 0.65 | 99.45 | 0.88 | 22.46 | 20.28 | 98.72 | 101.96 | 14.68 | |||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | NASDAQ | 13.85 | (25.3 | ) | 1.47 | 150.16 | 1.96 | 9.42 | 81.47 | 89.07 | 93.83 | 9.22 | ||||||||||||||||||||||||||||||||
PCSB | PCSB FINANCIAL CORP | NY | NASDAQ | 15.86 | (21.7 | ) | 0.55 | 105.93 | 0.00 | 28.84 | 29.37 | 119.97 | 123.42 | 14.97 | ||||||||||||||||||||||||||||||||
PDLB | PDL COMMUNITY BANCORP | NY | NASDAQ | 10.58 | (28.0 | ) | (0.37 | ) | 73.16 | 0.00 | NM | NM | 129.50 | 129.50 | 14.46 | |||||||||||||||||||||||||||||||
PFC | PREMIER FINANCIAL CORP | OH | NASDAQ | 22.77 | NM | 1.20 | 187.14 | 0.78 | 18.98 | 22.54 | 88.56 | 142.58 | 12.17 | |||||||||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | OTC PINK | 25.49 | (18.2 | ) | 2.17 | 158.32 | 1.24 | 11.75 | 12.68 | 80.64 | 80.64 | 16.10 | ||||||||||||||||||||||||||||||||
PFS | PROVIDENT FINANCIAL SERVICES | NJ | NYSE | 18.05 | (26.8 | ) | 1.05 | 164.01 | 0.79 | 17.19 | 17.52 | 88.44 | 122.71 | 11.01 | ||||||||||||||||||||||||||||||||
PPSF | PEOPLES- SIDNEY FINANCIAL CORP | OH | OTC PINK | 9.00 | (30.5 | ) | 0.67 | 102.85 | 0.42 | 13.43 | 13.85 | 68.81 | 68.81 | 8.75 | ||||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | CA | NASDAQ | 15.66 | (28.5 | ) | 1.14 | 159.22 | 0.67 | 13.74 | 15.82 | 102.09 | 102.35 | 9.84 | ||||||||||||||||||||||||||||||||
PVBC | PROVIDENT BANCORP | MA | NASDAQ | 12.28 | (1.4 | ) | 0.53 | 76.89 | 0.00 | 23.17 | 24.08 | 134.21 | 134.21 | 15.97 | ||||||||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP | PA | OTC PINK | 14.75 | 0.0 | 1.48 | 210.52 | 0.00 | 9.97 | 9.16 | 86.66 | 89.12 | 7.01 | |||||||||||||||||||||||||||||||||
QRRY | QUARRY CITY S&L ASSN | MO | OTC BB | 13.00 | (15.9 | ) | 1.07 | 160.15 | 0.00 | 12.15 | 14.29 | 56.40 | 57.57 | 8.12 | ||||||||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL | MN | OTC PINK | 120.50 | (31.1 | ) | 14.46 | 1,030.35 | 5.59 | 8.33 | 7.40 | 119.02 | 142.70 | 11.70 | ||||||||||||||||||||||||||||||||
RNDB | RANDOLPH BANCORP | MA | NASDAQ | 22.47 | 27.3 | 1.16 | 132.33 | 0.91 | 19.37 | 7.97 | 143.95 | 165.10 | 16.98 | |||||||||||||||||||||||||||||||||
RVSB | RIVERVIEW BANCORP | WA | NASDAQ | 5.22 | (36.4 | ) | 0.58 | 64.01 | 0.40 | 9.00 | 10.65 | 69.79 | 83.92 | 8.15 | ||||||||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL | IL | OTC BB | 14.15 | (16.8 | ) | 1.07 | 200.26 | 0.72 | 13.22 | 19.12 | 73.89 | 77.70 | 7.07 | ||||||||||||||||||||||||||||||||
SBT | STERLING BANCORP | MI | NASDAQ | 4.53 | (44.1 | ) | (0.30 | ) | 78.80 | 0.02 | NM | NM | 68.33 | 69.69 | 5.75 | |||||||||||||||||||||||||||||||
SFBK | SFB BANCORP | TN | OTC PINK | 43.10 | 39.9 | 0.98 | 246.76 | 0.63 | 43.98 | 37.48 | 107.00 | 108.65 | 17.47 | |||||||||||||||||||||||||||||||||
SNNF | SENECA FIN CORP | NY | OTC PINK | 7.56 | (19.6 | ) | 0.53 | 120.85 | 0.00 | 14.26 | 15.12 | 70.99 | 70.99 | 6.26 | ||||||||||||||||||||||||||||||||
SNNY | SUNNYSIDE BANCORP | NY | OTC BB | 12.42 | (4.5 | ) | (0.46 | ) | 122.27 | 0.00 | NM | NM | 87.90 | 87.90 | 10.16 | |||||||||||||||||||||||||||||||
STBI | STURGIS BANCORP | MI | OTC BB | 18.95 | (11.9 | ) | 2.80 | 285.39 | 1.44 | 6.77 | 6.72 | 89.30 | 108.22 | 6.64 | ||||||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | OTC BB | 32.67 | 9.0 | 1.52 | 228.75 | 0.67 | 21.49 | 22.07 | 106.83 | 133.02 | 14.28 | |||||||||||||||||||||||||||||||||
STXB | SPIRIT OF TEXAS BANCSHARES | TX | NASDAQ | 16.73 | (27.3 | ) | 1.47 | 162.64 | 0.07 | 11.38 | 11.62 | 84.54 | 112.89 | 10.29 |
99
Page 4
KELLER & COMPANY
Dublin, Ohio
614-766-1426
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF DECEMBER 31, 2020
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
Per Share | Pricing Ratios | |||||||||||||||||||||||||||||||||||||||||||||
52 Week | Earnings | 12 Month | Price/Net | Price/Core | Price/ | Price/Tang. | Price/ | |||||||||||||||||||||||||||||||||||||||
Price | Change | (EPS) | Assets | Div. | Earnings | Earnings | Book Value | Book Value | Assets | |||||||||||||||||||||||||||||||||||||
State | Exchange | ($) | (%) | ($) | ($) | ($) | (X) | (X) | (X) | (X) | (X) | |||||||||||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | OTC BB | 9.45 | (8.4 | ) | (2.58 | ) | 130.08 | 0.00 | NM | NM | 82.53 | 82.53 | 7.26 | |||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | NASDAQ | 7.05 | (24.3 | ) | 0.53 | 73.09 | 0.53 | 13.30 | 14.69 | 74.60 | 75.48 | 9.65 | ||||||||||||||||||||||||||||||||
SZBI | SOUTHFIRST BANCSHARES | AL | OTC PINK | 3.09 | 8.4 | (0.07 | ) | 127.43 | 0.18 | NM | 34.33 | NM | NM | 2.42 | ||||||||||||||||||||||||||||||||
TBK | TRIUMPH BANCORP | TX | NASDAQ | 49.08 | 29.1 | 1.96 | 234.87 | 0.00 | 25.04 | 27.12 | 175.79 | 243.09 | 20.90 | |||||||||||||||||||||||||||||||||
TBNK | TERRITORIAL BANCORP | HI | NASDAQ | 24.23 | (21.7 | ) | 2.07 | 221.47 | 1.29 | 11.71 | 13.10 | 98.66 | 98.86 | 10.94 | ||||||||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | OTC BB | 15.00 | 25.5 | 1.31 | 170.00 | 0.39 | 11.45 | 10.00 | 90.25 | 92.42 | 8.82 | |||||||||||||||||||||||||||||||||
TRST | TRUSTCO BANK CORP NY | NY | NASDAQ | 6.58 | (24.1 | ) | 0.54 | 59.48 | 0.27 | 12.19 | 12.42 | 113.25 | 113.25 | 11.06 | ||||||||||||||||||||||||||||||||
TSBK | TIMBERLAND BANCORP | WA | NASDAQ | 24.83 | (16.5 | ) | 2.96 | 188.11 | 1.05 | 8.39 | 8.42 | 111.80 | 125.28 | 13.20 | ||||||||||||||||||||||||||||||||
UBNC | UNION BANK | NC | OTC PINK | 11.74 | (19.4 | ) | 1.03 | 162.41 | 0.10 | 11.40 | 15.05 | 70.34 | 81.58 | 7.23 | ||||||||||||||||||||||||||||||||
UNTN | UNITED TENNESSEE BANKSHARES | TN | OTC PINK | 19.53 | (15.7 | ) | 1.56 | 276.12 | 0.71 | 12.52 | 13.85 | 65.67 | 65.67 | 7.07 | ||||||||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | OTC BB | 21.00 | (12.5 | ) | 1.05 | 155.84 | 0.00 | 20.00 | 23.08 | 68.76 | 68.76 | 13.48 | ||||||||||||||||||||||||||||||||
WBBW | WESTBURY BANCORP | WI | OTC BB | 24.01 | (15.8 | ) | 2.46 | 293.46 | 2.94 | 9.76 | 10.39 | 87.66 | 88.01 | 8.18 | ||||||||||||||||||||||||||||||||
WCFB | WCF BANCORP | IA | NASDAQ | 7.00 | (18.6 | ) | 0.05 | 55.25 | 0.00 | NM | NM | 80.65 | 80.83 | 12.67 | ||||||||||||||||||||||||||||||||
WNEB | WESTERN NEW ENGLAND BANCORP | MA | NASDAQ | 6.81 | (29.3 | ) | 0.48 | 96.74 | 0.54 | 14.19 | 18.92 | 80.31 | 86.53 | 7.04 | ||||||||||||||||||||||||||||||||
WSBF | WATERSTONE FINANCIAL | WI | NASDAQ | 18.73 | (1.6 | ) | 2.46 | 88.05 | 0.97 | 7.61 | 7.64 | 118.24 | 120.99 | 21.27 | ||||||||||||||||||||||||||||||||
WSFS | WSFS FINANCIAL CORP | DE | NASDAQ | 44.86 | 2.0 | 1.99 | 272.93 | 0.48 | 22.54 | 32.99 | 122.13 | 174.69 | 16.44 | |||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | NASDAQ | 15.01 | (6.3 | ) | 1.30 | 172.12 | 1.08 | 11.55 | 13.28 | 87.27 | 87.27 | 8.72 |
100
Page 5
KELLER & COMPANY
Dublin, Ohio
614-766-1426
SHARE DATA AND PRICING RATIOS
PUBLICLY-TRADED, FDIC-INSURED SAVINGS INSTITUTIONS
(EXCLUDING MUTUAL HOLDING COMPANIES)
PRICES AS OF DECEMBER 31, 2020
ALL RATIOS/FINANCIAL DATA AS OF MOST RECENT FOUR QUARTERS
Per Share | Pricing Ratios | |||||||||||||||||||||||||||||||||||||||||||
52 Week | Earnings | 12 Month | Price/Net | Price/Core | Price/ | Price/Tang. | Price/ | |||||||||||||||||||||||||||||||||||||
Price | Change | (EPS) | Assets | Div. | Earnings | Earnings | Book Value | Book Value | Assets | |||||||||||||||||||||||||||||||||||
State | Exchange | ($) | (%) | ($) | ($) | ($) | (X) | (X) | (X) | (X) | (X) | |||||||||||||||||||||||||||||||||
ALL INSTITUTIONS | ||||||||||||||||||||||||||||||||||||||||||||
AVERAGE | 23.65 | (3.92 | ) | 1.90 | 223.28 | 0.64 | 16.12 | 17.57 | 95.10 | 105.14 | 11.05 | |||||||||||||||||||||||||||||||||
HIGH | 217.99 | 172.40 | 18.21 | 1,398.51 | 5.59 | 92.00 | 92.00 | 213.98 | 251.60 | 27.00 | ||||||||||||||||||||||||||||||||||
LOW | 1.84 | (44.10 | ) | (2.58 | ) | 4.83 | 0.00 | 1.45 | 1.43 | 35.51 | 35.51 | 1.62 | ||||||||||||||||||||||||||||||||
AVERAGE FOR STATE | ||||||||||||||||||||||||||||||||||||||||||||
AL | 3.09 | 8.40 | (0.07 | ) | 127.43 | 0.18 | N/A | 34.33 | N/A | N/A | 2.42 | |||||||||||||||||||||||||||||||||
AVERAGE BY REGION | ||||||||||||||||||||||||||||||||||||||||||||
MID-ATLANTIC | 18.22 | (15.22 | ) | 1.20 | 170.22 | 0.78 | 15.75 | 22.85 | 89.28 | 106.81 | 10.44 | |||||||||||||||||||||||||||||||||
MIDWEST | 22.72 | 1.20 | 1.81 | 248.75 | 0.54 | 13.65 | 13.98 | 88.75 | 94.96 | 10.98 | ||||||||||||||||||||||||||||||||||
NORTH CENTRAL | 34.76 | (5.02 | ) | 3.88 | 257.51 | 1.22 | 11.12 | 10.85 | 107.24 | 124.45 | 14.00 | |||||||||||||||||||||||||||||||||
NORTHEAST | 25.51 | (0.91 | ) | 1.63 | 200.50 | 0.43 | 12.82 | 12.58 | 101.32 | 109.60 | 11.05 | |||||||||||||||||||||||||||||||||
SOUTHEAST | 20.25 | 0.70 | 1.32 | 249.58 | 0.35 | 10.79 | 14.71 | 51.40 | 53.42 | 6.62 | ||||||||||||||||||||||||||||||||||
SOUTHWEST | 24.06 | (12.18 | ) | 1.72 | 208.72 | 0.30 | 18.01 | 18.56 | 101.47 | 118.97 | 11.62 | |||||||||||||||||||||||||||||||||
WEST | 23.42 | (9.04 | ) | 2.43 | 193.26 | 1.16 | 20.44 | 20.87 | 108.73 | 116.25 | 11.63 | |||||||||||||||||||||||||||||||||
AVERAGE BY EXCHANGE | ||||||||||||||||||||||||||||||||||||||||||||
NYSE | 26.62 | (2.53 | ) | 3.25 | 256.04 | 0.42 | 11.32 | 11.39 | 111.28 | 142.95 | 11.07 | |||||||||||||||||||||||||||||||||
NASDAQ | 22.93 | (8.92 | ) | 1.69 | 183.46 | 0.63 | 16.93 | 18.57 | 102.95 | 115.92 | 12.47 | |||||||||||||||||||||||||||||||||
OTC BB | 22.04 | 0.51 | 2.11 | 235.18 | 0.72 | 9.67 | 9.85 | 84.31 | 89.14 | 9.70 | ||||||||||||||||||||||||||||||||||
OTC PINK | 26.45 | 3.08 | 1.92 | 297.82 | 0.63 | 13.08 | 15.76 | 70.50 | 73.27 | 8.57 |
101
EXHIBIT 29
Page 1
KELLER & COMPANY
Dublin, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
Assets and Equity | Profitability | Capital Issues | ||||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Core | Core | Number of | Mkt. Value | ||||||||||||||||||||||||||||||||||||
Assets | Equity | Tang. Equity | ROAA | ROAA | ROAE | ROAE | Shares | of Shares | ||||||||||||||||||||||||||||||||||
State | ($000) | ($000) | ($000) | (%) | (%) | (%) | (%) | Exchange | Outstanding | ($000) | ||||||||||||||||||||||||||||||||
SZBI | SOUTHFIRST BANCSHARES | AL | 89,395 | 9,775 | 9,775 | (0.06 | ) | 0.07 | (0.48 | ) | 0.63 | OTC PINK | 701,526 | 2,168 | ||||||||||||||||||||||||||||
AX | AXOS FINANCIAL | CA | 13,382,238 | 1,236,965 | 1,102,018 | 1.51 | 1.52 | 16.26 | 16.26 | NYSE | 59,215,934 | 2,211,123 | ||||||||||||||||||||||||||||||
BYFC | BROADWAY FINANCIAL CORP | CA | 497,028 | 50,261 | 50,253 | 0.14 | 0.10 | 1.32 | 0.95 | NASDAQ | 28,038,967 | 51,592 | ||||||||||||||||||||||||||||||
MLGF | MALAGA FINANCIAL CORPORATION | CA | 1,282,413 | 164,004 | 164,004 | 1.37 | 1.44 | 10.93 | 11.46 | OTC BB | 6,904,720 | 162,261 | ||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | CA | 1,184,018 | 114,048 | 113,753 | 0.74 | 0.65 | 7.40 | 6.43 | NASDAQ | 7,436,315 | 116,453 | ||||||||||||||||||||||||||||||
WSFS | WSFS FINANCIAL CORP | DE | 13,830,108 | 1,861,302 | 1,301,496 | 0.78 | 0.53 | 5.46 | 3.75 | NASDAQ | 50,673,444 | 2,273,211 | ||||||||||||||||||||||||||||||
TBNK | TERRITORIAL BANCORP | HI | 2,107,049 | 233,643 | 233,192 | 0.94 | 0.84 | 8.67 | 7.77 | NASDAQ | 9,513,867 | 230,521 | ||||||||||||||||||||||||||||||
WCFB | WCF BANCORP | IA | 135,009 | 21,218 | 21,163 | 0.09 | (0.16 | ) | 0.60 | (1.03 | ) | NASDAQ | 2,443,777 | 17,106 | ||||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP | IL | 142,020 | 16,772 | 16,772 | 3.29 | 3.35 | 27.69 | 28.21 | OTC BB | 1,631,893 | 5,956 | ||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | 1,604,329 | 163,475 | 163,182 | 0.86 | 0.72 | 8.06 | 6.76 | NASDAQ | 14,890,628 | 131,931 | ||||||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP | IL | 198,994 | 18,699 | 17,280 | 0.66 | 0.72 | 6.85 | 7.46 | OTC BB | 419,563 | 12,692 | ||||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 726,004 | 82,115 | 81,384 | 0.62 | 0.56 | 5.43 | 4.89 | NASDAQ | 3,240,376 | 71,483 | ||||||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | 119,033 | 10,731 | 10,731 | (0.34 | ) | (0.43 | ) | (3.61 | ) | (4.53 | ) | OTC PINK | 372,600 | 4,475 | ||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP | IL | 310,402 | 46,154 | 44,688 | 0.66 | 0.73 | 4.46 | 4.94 | OTC BB | 3,121,035 | 45,567 | ||||||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL | IL | 511,957 | 48,964 | 46,565 | 0.63 | 0.44 | 5.76 | 3.99 | OTC BB | 2,556,518 | 36,175 | ||||||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | 102,140 | 8,992 | 8,992 | (2.03 | ) | (2.20 | ) | (21.26 | ) | (23.03 | ) | OTC BB | 785,192 | 7,420 | ||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP | IN | 256,661 | 22,493 | 21,858 | 0.74 | 0.86 | 8.30 | 9.61 | OTC BB | 965,352 | 15,446 | ||||||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | 1,181,413 | 131,009 | 129,089 | 0.41 | 0.32 | 3.53 | 2.78 | OTC PINK | 844,763 | 84,476 | ||||||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA | IN | 473,584 | 43,916 | 36,419 | 0.43 | 0.49 | 4.52 | 5.23 | OTC BB | 1,735,088 | 29,566 | ||||||||||||||||||||||||||||||
FCAP | FIRST CAPITAL | IN | 942,840 | 100,479 | 93,298 | 1.09 | 1.06 | 9.89 | 9.68 | NASDAQ | 3,377,671 | 215,023 | ||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 1,760,624 | 169,197 | 132,917 | 1.56 | 2.22 | 16.26 | 23.08 | NASDAQ | 2,375,324 | 152,971 | ||||||||||||||||||||||||||||||
MSVB | MID-SOUTHERN BANCORP, INC | IN | 218,098 | 41,247 | 41,247 | 0.57 | 0.60 | 3.07 | 3.19 | NASDAQ | 3,328,498 | 48,263 | ||||||||||||||||||||||||||||||
NWIN | NORTHWEST INDIANA BANCORP | IN | 1,478,689 | 147,364 | 131,345 | 0.97 | 0.93 | 9.68 | 9.31 | OTC BB | 3,463,136 | 125,019 | ||||||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | 202,668 | 19,818 | 19,350 | 0.82 | 0.93 | 8.48 | 9.68 | OTC BB | 1,192,159 | 17,882 | ||||||||||||||||||||||||||||||
CFFN | CAPITOL FEDERAL FINANCIAL | KS | 9,509,098 | 1,284,859 | 1,269,643 | 0.68 | 0.69 | 4.98 | 5.02 | NASDAQ | 138,956,296 | 1,720,279 |
102
Page 2
KELLER & COMPANY
Dublin, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
Assets and Equity | Profitability | Capital Issues | ||||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Core | Core | Number of | Mkt. Value | ||||||||||||||||||||||||||||||||||||
Assets | Equity | Tang. Equity | ROAA | ROAA | ROAE | ROAE | Shares | of Shares | ||||||||||||||||||||||||||||||||||
State | ($000) | ($000) | ($000) | (%) | (%) | (%) | (%) | Exchange | Outstanding | ($000) | ||||||||||||||||||||||||||||||||
CTUY | CENTURY NEXT FINANCIAL CORP | LA | 504,874 | 59,090 | 54,876 | 1.18 | 1.05 | 10.42 | 9.29 | OTC BB | 1,682,526 | 43,746 | ||||||||||||||||||||||||||||||
HRGG | HERITAGE NOLA BANCORP | LA | 145,033 | 19,932 | 19,246 | 0.41 | 0.43 | 2.92 | 3.07 | OTC PINK | 1,525,209 | 18,379 | ||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | LA | 542,184 | 52,203 | 52,203 | 0.84 | 0.77 | 8.01 | 7.35 | NASDAQ | 1,724,512 | 49,804 | ||||||||||||||||||||||||||||||
HONE | HARBORONE BANCORP | MA | 4,432,932 | 561,570 | 466,872 | 0.68 | 0.68 | 5.25 | 5.24 | NASDAQ | 58,418,021 | 632,083 | ||||||||||||||||||||||||||||||
HIFS | HINGHAM INSTITUTION FOR SAVINGS | MA | 2,719,181 | 278,312 | 278,312 | 1.46 | 1.61 | 15.00 | 16.57 | NASDAQ | 2,136,900 | 465,823 | ||||||||||||||||||||||||||||||
EBSB | MERIDIAN BANCORP | MA | 6,566,895 | 748,264 | 726,011 | 1.00 | 0.93 | 8.74 | 8.13 | NASDAQ | 52,413,120 | 780,431 | ||||||||||||||||||||||||||||||
PVBC | PROVIDENT BANCORP | MA | 1,497,189 | 178,184 | 178,184 | 0.78 | 0.75 | 5.96 | 5.75 | NASDAQ | 19,472,310 | 239,120 | ||||||||||||||||||||||||||||||
RNDB | RANDOLPH BANCORP | MA | 725,171 | 85,561 | 74,581 | 0.93 | 2.26 | 8.09 | 19.76 | NASDAQ | 5,479,884 | 123,133 | ||||||||||||||||||||||||||||||
WNEB | WESTERN NEW ENGLAND BANCORP | MA | 2,480,786 | 217,398 | 201,712 | 0.53 | 0.40 | 5.65 | 4.25 | NASDAQ | 25,644,334 | 174,638 | ||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 936,487 | 121,025 | 119,711 | 0.76 | 0.70 | 5.63 | 5.18 | NASDAQ | 12,812,976 | 90,331 | ||||||||||||||||||||||||||||||
FBC | FLAGSTAR BANCORP | MI | 29,475,693 | 2,195,229 | 1,711,451 | 1.65 | 1.68 | 22.63 | 23.00 | NYSE | 57,150,470 | 2,321,452 | ||||||||||||||||||||||||||||||
SBT | STERLING BANCORP | MI | 3,938,062 | 331,144 | 324,721 | (0.42 | ) | (0.53 | ) | (4.54 | ) | (5.75 | ) | NASDAQ | 49,977,209 | 226,397 | ||||||||||||||||||||||||||
STBI | STURGIS BANCORP | MI | 604,674 | 44,971 | 37,093 | 1.06 | 1.07 | 13.61 | 13.71 | OTC BB | 2,118,791 | 40,151 | ||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 897,596 | 88,413 | 84,649 | 0.99 | 1.09 | 9.36 | 10.36 | NASDAQ | 4,836,359 | 83,282 | ||||||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL | MN | 451,862 | 44,401 | 37,033 | 1.59 | 1.79 | 15.07 | 16.97 | OTC PINK | 438,551 | 52,845 | ||||||||||||||||||||||||||||||
NASB | NASB FINANCIAL | MO | 2,539,747 | 355,574 | 339,998 | 3.08 | NM | 25.60 | NM | OTC BB | 7,388,493 | 483,946 | ||||||||||||||||||||||||||||||
QRRY | QUARRY CITY S&L ASSN | MO | 65,292 | 9,399 | 9,206 | 0.71 | 0.60 | 4.72 | 4.00 | OTC BB | 407,691 | 5,300 | ||||||||||||||||||||||||||||||
FCPB | FIRST CAPITAL BANCSHARES | NC | 226,598 | 24,944 | 24,944 | (0.04 | ) | (0.54 | ) | (0.28 | ) | (4.19 | ) | OTC PINK | 563,728 | 3,664 | ||||||||||||||||||||||||||
KSBI | KS BANCORP | NC | 478,092 | 43,423 | 43,423 | 0.97 | 1.00 | 10.37 | 10.70 | OTC BB | 1,107,776 | 29,356 | ||||||||||||||||||||||||||||||
LSFG | LIFESTORE FINANCIAL GROUP | NC | 352,116 | 38,496 | 37,302 | 1.01 | 1.13 | 9.12 | 10.23 | OTC PINK | 1,019,091 | 38,725 | ||||||||||||||||||||||||||||||
UBNC | UNION BANK | NC | 971,043 | 99,759 | 86,045 | 0.68 | 0.51 | 6.71 | 5.04 | OTC PINK | 5,978,851 | 70,192 | ||||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 402,167 | 36,953 | 33,790 | 0.73 | 0.82 | 7.82 | 8.82 | NASDAQ | 3,070,000 | 36,687 | ||||||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL | NE | 436,788 | 77,598 | 74,845 | 1.58 | 1.40 | 8.91 | 7.90 | OTC PINK | 2,635,221 | 76,817 | ||||||||||||||||||||||||||||||
KRNY | KEARNY FINANCIAL CORP | NJ | 7,310,209 | 1,124,060 | 908,516 | 0.66 | 0.61 | 4.11 | 3.84 | NASDAQ | 89,510,451 | 945,230 | ||||||||||||||||||||||||||||||
NFBK | NORTHFIELD BANCORP | NJ | 5,589,869 | 757,507 | 715,112 | 0.66 | 0.65 | 4.75 | 4.71 | NASDAQ | 41,453,343 | 506,560 |
103
Page 3
KELLER & COMPANY
Dublin, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
Assets and Equity | Profitability | Capital Issues | ||||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Core | Core | Number of | Mkt. Value | ||||||||||||||||||||||||||||||||||||
Assets | Equity | Tang. Equity | ROAA | ROAA | ROAE | ROAE | Shares | of Shares | ||||||||||||||||||||||||||||||||||
State | ($000) | ($000) | ($000) | (%) | (%) | (%) | (%) | Exchange | Outstanding | ($000) | ||||||||||||||||||||||||||||||||
OCFC | OCEANFIRST FINANCIAL CORP | NJ | 11,664,161 | 1,461,714 | 935,693 | 0.51 | 0.49 | 3.90 | 3.69 | NASDAQ | 60,378,120 | 1,129,071 | ||||||||||||||||||||||||||||||
PFS | PROVIDENT FINANCIAL SERVICES | NJ | 12,871,322 | 1,601,706 | 1,154,603 | 0.76 | 0.75 | 5.64 | 5.53 | NYSE | 78,481,159 | 1,416,585 | ||||||||||||||||||||||||||||||
BCTF | BANCORP 34 | NM | 464,817 | 42,682 | 42,508 | 0.43 | 0.42 | 4.47 | 4.31 | NASDAQ | 3,199,913 | 37,087 | ||||||||||||||||||||||||||||||
CARV | CARVER BANCORP | NY | 672,653 | 46,396 | 46,254 | (0.78 | ) | (0.95 | ) | (10.11 | ) | (12.28 | ) | NASDAQ | 2,857,410 | 18,916 | ||||||||||||||||||||||||||
DCOM | DIME COMMUNITY BANCSHARES | NY | 6,619,391 | 694,158 | 636,935 | 0.69 | 0.63 | 6.75 | 6.21 | NASDAQ | 33,049,822 | 521,526 | ||||||||||||||||||||||||||||||
ESBK | ELMIRA SAVINGS BANK | NY | 674,281 | 59,960 | 46,334 | 0.59 | 0.60 | 6.36 | 6.48 | NASDAQ | 3,510,000 | 40,400 | ||||||||||||||||||||||||||||||
NYCB | NEW YORK COMMUNITY BANCORP | NY | 54,931,755 | 6,734,730 | 4,308,351 | 0.78 | 0.78 | 6.31 | 6.32 | NYSE | 463,904,084 | 4,861,715 | ||||||||||||||||||||||||||||||
PCSB | PCSB FINANCIAL CORP | NY | 1,790,028 | 223,403 | 217,088 | 0.54 | 0.53 | 4.25 | 4.15 | NASDAQ | 16,898,137 | 268,004 | ||||||||||||||||||||||||||||||
PDLB | PDL COMMUNITY BANCORP | NY | 1,260,820 | 140,875 | 140,875 | (0.55 | ) | (0.82 | ) | (4.65 | ) | (6.98 | ) | NASDAQ | 17,234,291 | 182,339 | ||||||||||||||||||||||||||
SNNF | SENECA FIN CORP | NY | 231,184 | 20,372 | 20,372 | 0.46 | 0.43 | 5.22 | 4.93 | OTC PINK | 1,912,959 | 14,462 | ||||||||||||||||||||||||||||||
SNNY | SUNNYSIDE BANCORP | NY | 97,024 | 11,211 | 11,211 | (0.40 | ) | (0.54 | ) | (3.30 | ) | (4.47 | ) | OTC BB | 793,500 | 9,855 | ||||||||||||||||||||||||||
TRST | TRUSTCO BANK CORP NY | NY | 5,735,670 | 560,528 | 559,975 | 0.96 | 0.93 | 9.55 | 9.21 | NASDAQ | 96,432,657 | 634,527 | ||||||||||||||||||||||||||||||
CNNB | CINCINNATI FEDERAL | OH | 232,091 | 32,890 | 31,093 | 0.50 | 0.83 | 3.93 | 6.49 | NASDAQ | 2,980,000 | 35,611 | ||||||||||||||||||||||||||||||
CCSB | COMM SAVINGS BANCORP | OH | 53,164 | 7,430 | 7,411 | (0.14 | ) | 0.01 | (1.01 | ) | 0.07 | OTC BB | 408,379 | 5,309 | ||||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP | OH | 212,789 | 17,342 | 16,270 | 0.79 | 1.00 | 9.61 | 12.17 | OTC PINK | 795,192 | 13,717 | ||||||||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP | OH | 156,701 | 23,676 | 23,676 | 0.88 | 1.13 | 5.78 | 7.46 | NASDAQ | 1,573,473 | 25,899 | ||||||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL | OH | 106,777 | 12,787 | 12,787 | 0.45 | 0.24 | 3.67 | 1.95 | OTC PINK | 1,113,067 | 11,453 | ||||||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | 245,122 | 27,038 | 26,732 | 1.53 | 1.53 | 13.37 | 13.42 | OTC BB | 1,403,668 | 42,124 | ||||||||||||||||||||||||||||||
PPSF | PEOPLES- SIDNEY FINANCIAL CORP | OH | 122,018 | 15,513 | 15,513 | 0.67 | 0.65 | 5.22 | 5.01 | OTC PINK | 1,186,406 | 10,678 | ||||||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | 391,054 | 78,088 | 78,088 | 1.36 | 1.26 | 6.92 | 6.43 | OTC PINK | 2,470,032 | 62,961 | ||||||||||||||||||||||||||||||
PFC | PREMIER FINANCIAL CORP | OH | 6,979,713 | 959,025 | 595,595 | 0.74 | 0.63 | 5.52 | 4.66 | NASDAQ | 37,296,613 | 849,244 | ||||||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | 60,356 | 11,828 | 11,828 | 0.70 | 0.61 | 3.46 | 3.00 | OTC BB | 387,289 | 8,133 | ||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | PA | 1,892,465 | 187,507 | 172,522 | 0.74 | 0.59 | 7.61 | 5.99 | NASDAQ | 10,960,357 | 164,625 | ||||||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FINANCIAL | PA | 856,017 | 78,594 | 78,594 | 0.97 | 0.95 | 10.29 | 10.08 | OTC PINK | 3,747,052 | 80,562 | ||||||||||||||||||||||||||||||
NWBI | NORTHWEST BANCSHARES | PA | 13,943,884 | 1,547,231 | 1,132,642 | 0.53 | 0.52 | 4.53 | 4.44 | NASDAQ | 106,859,088 | 1,347,493 |
104
Page 4
KELLER & COMPANY
Dublin, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
Assets and Equity | Profitability | Capital Issues | ||||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Core | Core | Number of | Mkt. Value | ||||||||||||||||||||||||||||||||||||
Assets | Equity | Tang. Equity | ROAA | ROAA | ROAE | ROAE | Shares | of Shares | ||||||||||||||||||||||||||||||||||
State | ($000) | ($000) | ($000) | (%) | (%) | (%) | (%) | Exchange | Outstanding | ($000) | ||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 1,223,335 | 126,684 | 120,242 | 0.97 | 0.11 | 9.18 | 1.06 | NASDAQ | 8,147,005 | 112,836 | ||||||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP | PA | 421,371 | 34,062 | 33,132 | 0.82 | 0.90 | 9.08 | 9.89 | OTC PINK | 2,001,614 | 29,524 | ||||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | 1,066,107 | 142,518 | 114,445 | 0.69 | 0.67 | 5.05 | 4.90 | OTC BB | 4,660,649 | 152,263 | ||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 328,173 | 32,802 | 32,802 | 0.70 | 0.61 | 7.95 | 6.92 | NASDAQ | 1,906,704 | 28,620 | ||||||||||||||||||||||||||||||
FSGB | FIRST FEDERAL OF SOUTH CAROLINA | SC | 116,293 | 10,070 | 9,644 | 0.75 | 0.84 | 8.31 | 9.34 | OTC PINK | 24,066,545 | 326,342 | ||||||||||||||||||||||||||||||
CASH | META FINANCIAL GROUP | SD | 6,092,939 | 847,308 | 494,030 | 1.56 | 1.64 | 12.68 | 13.36 | NASDAQ | 34,360,890 | 1,243,177 | ||||||||||||||||||||||||||||||
SFBK | SFB BANCORP | TN | 62,272 | 10,164 | 10,010 | 0.40 | 0.47 | 2.46 | 2.89 | OTC PINK | 252,361 | 10,877 | ||||||||||||||||||||||||||||||
UNTN | UNITED TENNESSEE BANKSHARES | TN | 233,960 | 25,201 | 25,201 | 0.59 | 0.54 | 5.38 | 4.87 | OTC PINK | 847,309 | 16,548 | ||||||||||||||||||||||||||||||
STXB | SPIRIT OF TEXAS BANCSHARES | TX | 2,922,521 | 355,672 | 266,252 | 0.98 | 0.96 | 7.65 | 7.50 | NASDAQ | 17,969,012 | 300,622 | ||||||||||||||||||||||||||||||
TBK | TRIUMPH BANCORP | TX | 5,836,788 | 693,842 | 501,801 | 0.89 | 0.82 | 7.54 | 6.99 | NASDAQ | 24,851,601 | 1,219,717 | ||||||||||||||||||||||||||||||
FSBW | FS BANCORP | WA | 2,053,751 | 217,203 | 198,227 | 1.52 | 1.80 | 13.77 | 16.30 | NASDAQ | 4,245,041 | 232,416 | ||||||||||||||||||||||||||||||
RVSB | RIVERVIEW BANCORP | WA | 1,423,927 | 166,285 | 138,392 | 1.01 | 0.84 | 7.84 | 6.57 | NASDAQ | 22,245,472 | 116,121 | ||||||||||||||||||||||||||||||
TSBK | TIMBERLAND BANCORP | WA | 1,563,343 | 184,567 | 164,717 | 1.73 | 1.73 | 13.81 | 13.78 | NASDAQ | 8,310,793 | 206,357 | ||||||||||||||||||||||||||||||
FFBW | FFBW, INC | WI | 285,634 | 75,369 | 75,310 | 0.70 | 0.75 | 2.94 | 3.15 | NASDAQ | 7,704,875 | 77,126 | ||||||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN | WI | 177,833 | 17,530 | 17,530 | 0.40 | 0.51 | 4.32 | 5.60 | OTC PINK | 899,190 | 12,580 | ||||||||||||||||||||||||||||||
WSBF | WATERSTONE FINANCIAL | WI | 2,220,629 | 399,429 | 390,354 | 2.93 | 2.91 | 16.02 | 15.92 | NASDAQ | 25,220,036 | 472,371 | ||||||||||||||||||||||||||||||
WBBW | WESTBURY BANCORP | WI | 887,607 | 82,841 | 82,523 | 0.87 | 0.81 | 9.09 | 8.50 | OTC BB | 3,024,589 | 72,620 |
105
Page 5
KELLER & COMPANY
Dublin, Ohio
614-766-1426
KEY FINANCIAL DATA AND RATIOS
PUBLICLY-TRADED FDIC-INSURED SAVINGS INSTITUTIONS
MOST RECENT FOUR QUARTERS
Assets and Equity | Profitability | Capital Issues | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | Total | Core | Core | Number of | Mkt. Value | ||||||||||||||||||||||||||||||||||||||
Assets | Equity | Tang. Equity | ROAA | ROAA | ROAE | ROAE | Shares | of Shares | ||||||||||||||||||||||||||||||||||||
State | ($000) | ($000) | ($000) | (%) | (%) | (%) | (%) | Exchange | Outstanding | ($000) | ||||||||||||||||||||||||||||||||||
ALL INSTITUTIONS | ||||||||||||||||||||||||||||||||||||||||||||
AVERAGE | 2,996,936 | 344,121 | 270,628 | 0.78 | 0.75 | 6.76 | 6.51 | 21,061,922 | 345,104 | |||||||||||||||||||||||||||||||||||
MEDIAN | 725,588 | 80,355 | 78,341 | 0.74 | 0.72 | 6.54 | 6.21 | 3,353,085 | 76,972 | |||||||||||||||||||||||||||||||||||
HIGH | 54,931,755 | 6,734,730 | 4,308,351 | 3.29 | 3.35 | 27.69 | 28.21 | 463,904,084 | 4,861,715 | |||||||||||||||||||||||||||||||||||
LOW | 53,164 | 7,430 | 7,411 | (2.03 | ) | (2.20 | ) | (21.26 | ) | (23.03 | ) | 252,361 | 2,168 | |||||||||||||||||||||||||||||||
AVERAGE FOR STATE | ||||||||||||||||||||||||||||||||||||||||||||
AL | 89,395 | 9,775 | 9,775 | (0.06 | ) | 0.07 | (0.48 | ) | 0.63 | 701,526 | 2,168 | |||||||||||||||||||||||||||||||||
AVERAGE BY REGION | ||||||||||||||||||||||||||||||||||||||||||||
MID-ATLANTIC | 5,533,347 | 698,209 | 524,578 | 0.73 | 0.62 | 6.40 | 5.38 | 36,276,305 | 636,685 | |||||||||||||||||||||||||||||||||||
MIDWEST | 1,708,466 | 163,744 | 134,942 | 0.78 | 0.80 | 6.60 | 6.85 | 7,273,002 | 160,369 | |||||||||||||||||||||||||||||||||||
NORTHCENTRAL | 2,281,166 | 307,303 | 262,706 | 1.22 | 0.98 | 9.97 | 8.18 | 21,615,253 | 413,271 | |||||||||||||||||||||||||||||||||||
NORTHEAST | 6,028,997 | 704,061 | 527,538 | 0.51 | 0.55 | 4.60 | 4.88 | 53,343,829 | 597,798 | |||||||||||||||||||||||||||||||||||
SOUTHEAST | 316,221 | 32,729 | 30,793 | 0.54 | 0.50 | 5.20 | 4.94 | 4,317,148 | 62,234 | |||||||||||||||||||||||||||||||||||
SOUTHWEST | 1,736,036 | 203,904 | 156,148 | 0.79 | 0.74 | 6.84 | 6.42 | 8,492,129 | 278,226 | |||||||||||||||||||||||||||||||||||
WEST | 2,936,721 | 295,872 | 270,570 | 1.12 | 1.12 | 10.00 | 9.94 | 18,238,889 | 415,856 | |||||||||||||||||||||||||||||||||||
AVERAGE BY EXCHANGE | ||||||||||||||||||||||||||||||||||||||||||||
NYSE | 27,665,252 | 2,942,158 | 2,069,106 | 1.09 | 1.10 | 10.10 | 10.15 | 164,687,912 | 2,702,719 | |||||||||||||||||||||||||||||||||||
NASDAQ | 3,118,950 | 378,333 | 311,260 | 0.80 | 0.75 | 6.43 | 6.08 | 25,093,955 | 396,733 | |||||||||||||||||||||||||||||||||||
OTC | 550,552 | 63,452 | 59,334 | 1.41 | 1.63 | 12.56 | 14.50 | 2,198,000 | 64,323 | |||||||||||||||||||||||||||||||||||
OTC PINK | 345,242 | 38,818 | 37,308 | 0.78 | 0.73 | 6.72 | 6.33 | 2,668,563 | 47,072 |
106
EXHIBIT 30
KELLER & COMPANY
Dublin, Ohio
614-766-1426
RECENT CONVERSIONS
PRICE CHANGES FROM IPO DATE
June 30, 2019 through February 12, 2021
Percentage Price Change | |||||||||||||||||||||||||||||||||||
From Initial Trading Date | |||||||||||||||||||||||||||||||||||
Conversion | One | One | One | Through | |||||||||||||||||||||||||||||||
Company Name | Ticker | Date | Exchange | Day | Week | Month | 2/12/2021 | ||||||||||||||||||||||||||||
Richmond Mutual Bancorporation | RMBI | 7/02/2019 | NASDAQ | 36.50 | 33.90 | 32.90 | 33.50 | ||||||||||||||||||||||||||||
Eureka Homestead Bancorp | ERKH | 7/10/2019 | OTC MKT | 21.00 | 21.00 | 22.00 | 25.00 | ||||||||||||||||||||||||||||
FFBW, Inc. | FFBW | 1/17/2020 | NASDAQ | 8.30 | 3.80 | 6.70 | 5.70 | ||||||||||||||||||||||||||||
Cincinnati Bancorp | CNNB | 1/23/2020 | OTC MKT | 7.50 | 6.90 | 7.00 | 22.70 | ||||||||||||||||||||||||||||
Eastern Bankshares | EBC | 10/15/2020 | NASDAQ | 12.15 | 22.60 | 39.40 | 67.20 | ||||||||||||||||||||||||||||
AVERAGE | 14.66 | % | 13.12 | % | 13.72 | % | 17.38 | % | |||||||||||||||||||||||||||
MEDIAN | 12.15 | 21.00 | 22.00 | 25.00 | |||||||||||||||||||||||||||||||
HIGH | 36.50 | 33.90 | 39.40 | 67.20 | |||||||||||||||||||||||||||||||
LOW | 7.50 | 3.80 | 6.70 | 5.70 |
107
EXHIBIT 31
KELLER & COMPANY
Dublin, Ohio
614-766-1426
RECENT ACQUISITIONS AND PENDING ACQUISITIONS
COUNTY, CITY OR MARKET AREA OF CULLMAN SAVINGS BANK
NONE
(that were potential comparable group candidates)
108
EXHIBIT 32
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Southwest and West
Asset Size: < $1.9 Billion
No Recent Acquisition Activity
Total | ||||||||||||||||||||||||||||||||||||
Cash & | 1-4 Fam. | Total Net | Net Loans | Borrowed | ||||||||||||||||||||||||||||||||
Total | Securities/ | MBS/ | Loans/ | Loans/ | & MBS/ | Funds/ | Equity/ | |||||||||||||||||||||||||||||
Assets | Assets | Assets | Assets | Assets | Assets | Assets | Assets | |||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 23.91 | 0.87 | 34.68 | 69.95 | 70.82 | 16.14 | 17.16 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 26.00 - | 50.00 - | 9.00 - | |||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 45.00 | 30.00 | < 40.00 | 76.00 | 92.00 | < 46.00 | 22.00 | ||||||||||||||||||||||||||||
BYFC | BROADWAY FINANCIAL CORP | CA | 497,028 | 8.78 | 1.46 | 10.89 | 72.79 | 74.09 | 23.24 | 10.11 | ||||||||||||||||||||||||||
MLGF | MALAGA FINANCIAL CORPORATION | CA | 1,282,413 | 0.84 | 0.00 | 8.14 | 92.26 | 92.26 | 23.28 | 12.79 | ||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | CA | 1,184,018 | 9.93 | 10.41 | 24.58 | 74.74 | 91.44 | 11.49 | 9.63 | ||||||||||||||||||||||||||
WCFB | WCF BANCORP | IA | 135,009 | 19.52 | 13.20 | 36.47 | 58.82 | 70.61 | 14.23 | 15.72 | ||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP | IL | 142,020 | 13.70 | 6.15 | 52.34 | 66.63 | 71.87 | 11.67 | 11.81 | ||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | 1,604,329 | 27.29 | 0.61 | 2.16 | 66.44 | 66.99 | 0.25 | 10.19 | ||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP | IL | 198,994 | 45.53 | 0.05 | 20.07 | 45.46 | 45.50 | 2.01 | 9.40 | ||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 726,004 | 6.80 | 20.24 | 17.33 | 71.38 | 91.76 | 4.24 | 11.31 | ||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | 119,033 | 46.48 | 17.67 | 27.83 | 30.96 | 48.14 | 0.00 | 9.02 | ||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP | IL | 310,402 | 9.00 | 3.11 | 43.11 | 82.70 | 85.54 | 6.09 | 14.87 | ||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL | IL | 511,957 | 10.82 | 0.00 | 44.37 | 84.42 | 84.42 | 0.78 | 9.56 | ||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | 102,140 | 2.90 | 0.00 | 71.98 | 74.92 | 74.92 | 12.99 | 8.80 | ||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP | IN | 256,661 | 10.67 | 2.94 | 24.82 | 77.72 | 80.26 | 3.96 | 8.76 | ||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | 1,181,413 | 9.46 | 49.06 | 10.44 | 23.63 | 74.51 | 10.34 | 11.09 | ||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA | IN | 473,584 | 10.92 | 7.45 | 24.01 | 75.54 | 81.93 | 19.00 | 9.27 | ||||||||||||||||||||||||||
FCAP | FIRST CAPITAL | IN | 942,840 | 28.61 | 11.48 | 11.57 | 52.20 | 62.37 | 0.00 | 10.65 | ||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 1,760,624 | 12.86 | 1.21 | 24.22 | 61.92 | 62.99 | 27.59 | 9.59 | ||||||||||||||||||||||||||
MSVB | MID-SOUTHERN BANCORP, INC | IN | 218,098 | 33.80 | 7.65 | 29.65 | 52.85 | 63.70 | 4.59 | 18.91 | ||||||||||||||||||||||||||
NWIN | NORTHWEST INDIANA BANCORP | IN | 1,478,689 | 17.40 | 9.12 | 19.79 | 65.28 | 74.00 | 2.11 | 9.96 | ||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | 202,668 | 17.67 | 9.77 | 17.02 | 69.29 | 79.10 | 4.93 | 9.78 | ||||||||||||||||||||||||||
CTUY | CENTURY NEXT FINANCIAL CORP | LA | 504,874 | 11.80 | 0.05 | 28.13 | 82.42 | 82.47 | 1.27 | 11.70 | ||||||||||||||||||||||||||
HRGG | HERITAGE NOLA BANCORP | LA | 145,033 | 12.89 | 2.69 | 42.77 | 68.37 | 72.03 | 10.91 | 13.74 |
109
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Southwest and West
Asset Size: < $1.9 Billion
No Recent Acquisition Activity
Total | ||||||||||||||||||||||||||||||||||||
Cash & | 1-4 Fam. | Total Net | Net Loans | Borrowed | ||||||||||||||||||||||||||||||||
Total | Securities/ | MBS/ | Loans/ | Loans/ | & MBS/ | Funds/ | Equity/ | |||||||||||||||||||||||||||||
Assets | Assets | Assets | Assets | Assets | Assets | Assets | Assets | |||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 23.91 | 0.87 | 34.68 | 69.95 | 70.82 | 16.14 | 17.16 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 26.00 - | 50.00 - | 9.00 - | |||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 45.00 | 30.00 | < 40.00 | 76.00 | 92.00 | < 46.00 | 22.00 | ||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | LA | 542,184 | 7.13 | 11.51 | 24.54 | 65.51 | 75.38 | 0.18 | 9.63 | ||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 936,487 | 20.09 | 3.07 | 26.41 | 69.47 | 76.04 | 2.38 | 12.92 | ||||||||||||||||||||||||||
STBI | STURGIS BANCORP | MI | 604,674 | 19.98 | 7.21 | 27.15 | 71.95 | 78.82 | 10.17 | 7.44 | ||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 897,596 | 13.16 | 5.87 | 16.75 | 74.68 | 82.64 | 0.00 | 9.85 | ||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL | MN | 451,862 | 8.60 | 15.58 | 14.10 | 56.78 | 75.84 | 1.71 | 9.83 | ||||||||||||||||||||||||||
QRRY | QUARRY CITY S&L ASSN | MO | 65,292 | 17.99 | 0.00 | 33.46 | 73.05 | 73.05 | 0.00 | 14.40 | ||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 402,167 | 6.43 | 2.11 | 17.35 | 84.97 | 86.70 | 4.92 | 9.19 | ||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL | NE | 436,788 | 17.06 | 0.00 | 15.49 | 75.21 | 75.21 | 10.17 | 17.77 | ||||||||||||||||||||||||||
BCTF | BANCORP 34 | NM | 464,817 | 8.22 | 7.17 | 8.16 | 75.40 | 81.94 | 10.69 | 9.18 | ||||||||||||||||||||||||||
CNNB | CINCINNATI FEDERAL | OH | 232,091 | 9.80 | 2.56 | 47.65 | 73.19 | 75.58 | 17.46 | 14.17 | ||||||||||||||||||||||||||
CCSB | COMM SAVINGS BANCORP | OH | 53,164 | 13.71 | 4.32 | 47.14 | 81.01 | 84.99 | 2.43 | 13.98 | ||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP | OH | 212,789 | 13.15 | 2.93 | 47.09 | 70.47 | 72.92 | 18.44 | 8.15 | ||||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP | OH | 156,701 | 7.87 | 0.00 | 49.60 | 79.26 | 79.26 | 0.00 | 15.11 | ||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL | OH | 106,777 | 13.87 | 11.28 | 40.03 | 67.07 | 75.76 | 30.11 | 11.98 | ||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | 245,122 | 16.17 | 0.00 | 35.18 | 77.72 | 77.72 | 2.15 | 11.03 | ||||||||||||||||||||||||||
PPSF | PEOPLES-SIDNEY FINANCIAL CORP | OH | 122,018 | 21.62 | 0.00 | 48.68 | 73.26 | 73.26 | 1.69 | 12.71 | ||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | 391,054 | 13.23 | 0.52 | 47.62 | 84.28 | 84.77 | 1.53 | 19.97 | ||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | 60,356 | 19.91 | 0.10 | 48.67 | 63.94 | 64.02 | 3.65 | 19.60 | ||||||||||||||||||||||||||
ESSA | ESSA BANCORP | PA | 1,892,465 | 13.10 | 10.02 | 35.55 | 74.93 | 79.76 | 6.65 | 9.91 | ||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FINANCIAL | PA | 856,017 | 12.26 | 11.02 | 38.24 | 71.03 | 80.59 | 13.28 | 9.18 | ||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 1,223,335 | 21.95 | 22.62 | 18.51 | 48.09 | 68.00 | 23.43 | 10.36 | ||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP | PA | 421,371 | 7.82 | 1.38 | 18.54 | 81.89 | 83.16 | 19.90 | 8.08 |
110
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
BALANCE SHEET PARAMETERS
Most Recent Quarter
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Southwest and West
Asset Size: < $1.9 Billion
No Recent Acquisition Activity
Total | ||||||||||||||||||||||||||||||||||||
Cash & | 1-4 Fam. | Total Net | Net Loans | Borrowed | ||||||||||||||||||||||||||||||||
Total | Securities/ | MBS/ | Loans/ | Loans/ | & MBS/ | Funds/ | Equity/ | |||||||||||||||||||||||||||||
Assets | Assets | Assets | Assets | Assets | Assets | Assets | Assets | |||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 23.91 | 0.87 | 34.68 | 69.95 | 70.82 | 16.14 | 17.16 | |||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 26.00 - | 50.00 - | 9.00 - | |||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 45.00 | 30.00 | < 40.00 | 76.00 | 92.00 | < 46.00 | 22.00 | ||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | 1,066,107 | 16.18 | 6.58 | 36.88 | 69.79 | 76.38 | 9.86 | 13.37 | ||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 328,173 | 43.23 | 27.35 | 24.57 | 27.96 | 51.71 | 45.45 | 10.00 | ||||||||||||||||||||||||||
RVSB | RIVERVIEW BANCORP | WA | 1,423,927 | 12.41 | 9.08 | 6.23 | 67.16 | 75.17 | 2.94 | 11.67 | ||||||||||||||||||||||||||
TSBK | TIMBERLAND BANCORP | WA | 1,563,343 | 21.40 | 4.71 | 8.46 | 64.85 | 70.24 | 0.64 | 11.81 | ||||||||||||||||||||||||||
FFBW | FFBW, INC | WI | 285,634 | 8.81 | 13.30 | 19.73 | 70.94 | 84.75 | 5.08 | 26.39 | ||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN | WI | 177,833 | 20.39 | 0.66 | 37.75 | 76.11 | 76.72 | 15.31 | 9.86 | ||||||||||||||||||||||||||
WBBW | WESTBURY BANCORP | WI | 887,607 | 12.04 | 7.44 | 14.66 | 78.01 | 85.46 | 1.60 | 9.33 |
111
EXHIBIT 33
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Southwest and West
Asset Size: < $1.9 Billion
No Recent Acquisition Activity
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Net | Operating | Noninterest | ||||||||||||||||||||||||||||||||||||||
Total | Core | Core | Interest | Expenses/ | Income/ | NPA/ | REO/ | Reserves/ | ||||||||||||||||||||||||||||||||
Assets | ROAA | ROAE | Margin (2) | Assets | Assets | Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 1.13 | 6.43 | 3.85 | 2.57 | 0.46 | 0.17 | 0.13 | 0.71 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 1.80- | 1.00- | ||||||||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 2.25 | 24.00 | 4.10 | 7.20 | < 7.50 | < 1.16 | < 0.20 | > 0.15 | |||||||||||||||||||||||||||||||
BYFC | BROADWAY FINANCIAL CORP | CA | 497,028 | 0.10 | 0.95 | 2.77 | 2.42 | 0.16 | 0.16 | 0.00 | 0.65 | |||||||||||||||||||||||||||||
MLGF | MALAGA FINANCIAL CORPORATION | CA | 1,282,413 | 1.44 | 11.46 | 3.01 | 0.92 | 0.06 | 0.00 | 0.00 | 0.28 | |||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | CA | 1,184,018 | 0.65 | 6.43 | 3.24 | 2.37 | 0.35 | 0.42 | 0.00 | 0.72 | |||||||||||||||||||||||||||||
WCFB | WCF BANCORP | IA | 135,009 | (0.16 | ) | (1.03 | ) | 2.58 | 2.62 | 0.43 | 0.28 | 0.00 | 0.56 | |||||||||||||||||||||||||||
AFBA | ALLIED FIRST BANCORP | IL | 142020 | 3.35 | 28.21 | 2.95 | 60.78 | 62.92 | 0.46 | 0.00 | 0.67 | |||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | 1,604,329 | 0.72 | 6.76 | 3.22 | 2.28 | 0.31 | 0.15 | 0.01 | 0.50 | |||||||||||||||||||||||||||||
GTPS | GREAT AMERICAN BANCORP | IL | 198,994 | 0.72 | 7.46 | 3.01 | 3.62 | 1.99 | 1.75 | 0.48 | 0.50 | |||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 726,004 | 0.56 | 4.89 | 2.75 | 2.36 | 0.69 | 0.09 | 0.06 | 0.90 | |||||||||||||||||||||||||||||
MCPH | MIDLAND CAPITAL HOLDINGS CORP | IL | 119,033 | (0.43 | ) | (4.53 | ) | 2.28 | 2.58 | 0.25 | 1.15 | 0.11 | 0.28 | |||||||||||||||||||||||||||
OTTW | OTTAWA SAVINGS BANCORP | IL | 310,402 | 0.73 | 4.94 | 3.63 | 2.78 | 0.67 | 0.58 | 0.01 | 1.13 | |||||||||||||||||||||||||||||
RYFL | ROYAL FINANCIAL | IL | 511,957 | 0.44 | 3.99 | 3.40 | 1.86 | 0.11 | 0.45 | 0.06 | 0.70 | |||||||||||||||||||||||||||||
SUGR | SUGAR CREEK FINANCIAL CORP | IL | 102,140 | (2.20 | ) | (23.03 | ) | 2.28 | 2.43 | 0.13 | 0.82 | 0.19 | 2.12 | |||||||||||||||||||||||||||
AMFC | AMB FINANCIAL CORP | IN | 256,661 | 0.86 | 9.61 | 3.36 | 2.65 | 1.03 | 1.26 | 0.87 | 0.94 | |||||||||||||||||||||||||||||
FDLB | FIDELITY FEDERAL BANCORP | IN | 1,181,413 | 0.32 | 2.78 | 2.25 | 2.41 | 1.17 | 0.41 | 0.09 | 0.20 | |||||||||||||||||||||||||||||
FBPI | FIRST BANCORP OF INDIANA | IN | 473,584 | 0.49 | 5.23 | 2.94 | 2.82 | 0.80 | 0.55 | 0.30 | 0.54 | |||||||||||||||||||||||||||||
FCAP | FIRST CAPITAL | IN | 942,840 | 1.06 | 9.68 | 3.43 | 2.49 | 0.90 | 0.24 | 0.01 | 0.68 | |||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 1,760,624 | 2.22 | 23.08 | 3.69 | 7.17 | 7.45 | 0.87 | 0.10 | 0.97 | |||||||||||||||||||||||||||||
MSVB | MID-SOUTHERN BANCORP, INC | IN | 218,098 | 0.60 | 3.19 | 3.16 | 2.63 | 0.33 | 0.71 | 0.05 | 0.73 | |||||||||||||||||||||||||||||
NWIN | NORTHWEST INDIANA BANCORP | IN | 1,478,689 | 0.93 | 9.31 | 3.42 | 2.66 | 1.00 | 1.43 | 0.03 | 0.72 | |||||||||||||||||||||||||||||
TDCB | THIRD CENTURY BANCORP | IN | 202,668 | 0.93 | 9.68 | 3.36 | 3.19 | 1.43 | 0.00 | 0.00 | 0.85 | |||||||||||||||||||||||||||||
CTUY | CENTURY NEXT FINANCIAL CORP | LA | 504,874 | 1.05 | 9.29 | 4.44 | 3.19 | 0.79 | 1.13 | 0.15 | 0.86 | |||||||||||||||||||||||||||||
HRGG | HERITAGE NOLA BANCORP | LA | 145,033 | 0.43 | 3.07 | 3.33 | 3.25 | 1.00 | 0.51 | 0.00 | 0.63 |
112
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Southwest and West
Asset Size: < $1.9 Billion
No Recent Acquisition Activity
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Net | Operating | Noninterest | ||||||||||||||||||||||||||||||||||||||
Total | Core | Core | Interest | Expenses/ | Income/ | NPA/ | REO/ | Reserves/ | ||||||||||||||||||||||||||||||||
Assets | ROAA | ROAE | Margin (2) | Assets | Assets | Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 1.13 | 6.43 | 3.85 | 2.57 | 0.46 | 0.17 | 0.13 | 0.71 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 1.80- | 1.00- | ||||||||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 2.25 | 24.00 | 4.10 | 7.20 | < 7.50 | < 1.16 | < 0.20 | > 0.15 | |||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | LA | 542,184 | 0.77 | 7.35 | 3.26 | 2.29 | 0.82 | 1.15 | 0.18 | 0.84 | |||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 936,487 | 0.70 | 5.18 | 3.26 | 3.21 | 1.26 | 0.74 | 0.11 | 0.92 | |||||||||||||||||||||||||||||
STBI | STURGIS BANCORP | MI | 604,674 | 1.07 | 13.71 | 3.50 | 2.56 | 1.28 | 0.29 | 0.07 | 0.90 | |||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 897,596 | 1.09 | 10.36 | 3.50 | 2.82 | 1.30 | 0.33 | 0.05 | 1.06 | |||||||||||||||||||||||||||||
REDW | REDWOOD FINANCIAL | MN | 451,862 | 1.79 | 16.97 | 3.82 | 2.68 | 1.73 | 0.22 | 0.00 | 0.91 | |||||||||||||||||||||||||||||
QRRY | QUARRY CITY S&L ASSN | MO | 65,292 | 0.60 | 4.00 | 3.28 | 3.57 | 1.49 | 1.29 | 0.00 | 0.72 | |||||||||||||||||||||||||||||
EQFN | EQUITABLE FINANCIAL CORP | NE | 402,167 | 0.82 | 8.82 | 3.22 | 3.30 | 1.62 | 0.35 | 0.00 | 1.24 | |||||||||||||||||||||||||||||
MCBK | MADISON COUNTY FINANCIAL | NE | 436,788 | 1.40 | 7.90 | 3.64 | 2.30 | 0.89 | 0.03 | 0.00 | 2.28 | |||||||||||||||||||||||||||||
BCTF | BANCORP 34 | NM | 464,817 | 0.42 | 4.31 | 3.82 | 2.66 | 0.19 | 0.67 | 0.00 | 0.95 | |||||||||||||||||||||||||||||
CNNB | CINCINNATI FEDERAL | OH | 232,091 | 0.83 | 6.49 | 2.59 | 4.30 | 3.03 | 0.08 | 0.00 | 0.63 | |||||||||||||||||||||||||||||
CCSB | COMM SAVINGS BANCORP | OH | 53,164 | 0.01 | 0.07 | 4.09 | 4.50 | 0.77 | 1.22 | 0.00 | 0.51 | |||||||||||||||||||||||||||||
CIBN | COMMUNITY INVESTORS BANCORP | OH | 212,789 | 1.00 | 12.17 | 3.64 | 4.57 | 2.95 | 0.38 | 0.02 | 0.91 | |||||||||||||||||||||||||||||
EFBI | EAGLE FIN BANCORP | OH | 156,701 | 1.13 | 7.46 | 3.15 | 3.92 | 2.70 | 0.62 | 0.28 | 0.88 | |||||||||||||||||||||||||||||
FNFI | FIRST NILES FINANCIAL | OH | 106,777 | 0.24 | 1.95 | 2.47 | 1.77 | 0.10 | 0.67 | 0.19 | 0.52 | |||||||||||||||||||||||||||||
HLFN | HOME LOAN FINANCIAL CORP | OH | 245,122 | 1.53 | 13.42 | 4.19 | 2.18 | 0.68 | 0.65 | 0.13 | 0.81 | |||||||||||||||||||||||||||||
PPSF | PEOPLES-SIDNEY FINANCIAL CORP | OH | 122,018 | 0.65 | 5.01 | 3.57 | 2.69 | 0.18 | 0.39 | 0.05 | 0.87 | |||||||||||||||||||||||||||||
PFOH | PERPETUAL FEDERAL SAVINGS BANK | OH | 391,054 | 1.26 | 6.43 | 2.67 | 1.07 | 0.03 | 0.32 | 0.00 | 1.30 | |||||||||||||||||||||||||||||
VERF | VERSAILLES FINANCIAL CORP | OH | 60,356 | 0.61 | 3.00 | 3.13 | 2.10 | 0.04 | 0.00 | 0.00 | 0.42 | |||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | PA | 1,892,465 | 0.59 | 5.99 | 2.79 | 2.13 | 0.54 | 1.09 | 0.01 | 0.81 | |||||||||||||||||||||||||||||
HARL | HARLEYSVILLE SAVINGS FINANCIAL | PA | 856,017 | 0.95 | 10.08 | 2.99 | 1.70 | 0.25 | 0.85 | 0.00 | 0.62 | |||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 1,223,335 | 0.11 | 1.06 | 1.91 | 1.34 | 0.19 | 1.07 | 0.00 | 0.68 | |||||||||||||||||||||||||||||
QNTO | QUAINT OAK BANCORP | PA | 421,371 | 0.90 | 9.89 | 3.12 | 2.67 | 1.28 | 0.35 | 0.09 | 0.68 |
113
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
COMPARABLE GROUP SELECTION
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
General Parameters:
Regions: Mid-Atlantic, Midwest, North Central, Southwest and West
Asset Size: < $1.9 Billion
No Recent Acquisition Activity
OPERATING PERFORMANCE | ASSET QUALITY | |||||||||||||||||||||||||||||||||||||||
Net | Operating | Noninterest | ||||||||||||||||||||||||||||||||||||||
Total | Core | Core | Interest | Expenses/ | Income/ | NPA/ | REO/ | Reserves/ | ||||||||||||||||||||||||||||||||
Assets | ROAA | ROAE | Margin (2) | Assets | Assets | Assets | Assets | Assets | ||||||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 1.13 | 6.43 | 3.85 | 2.57 | 0.46 | 0.17 | 0.13 | 0.71 | ||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 1.80- | 1.00- | ||||||||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 2.25 | 24.00 | 4.10 | 7.20 | < 7.50 | < 1.16 | < 0.20 | > 0.15 | |||||||||||||||||||||||||||||||
STND | STANDARD FINANCIAL CORP | PA | 1,066,107 | 0.67 | 4.90 | 2.92 | 2.07 | 0.55 | 0.40 | 0.05 | 0.69 | |||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 328,173 | 0.61 | 6.92 | 1.87 | 1.09 | 0.12 | 0.00 | 0.00 | 0.19 | |||||||||||||||||||||||||||||
RVSB | RIVERVIEW BANCORP | WA | 1,423,927 | 0.84 | 6.57 | 3.87 | 2.55 | 0.81 | 0.09 | 0.00 | 1.32 | |||||||||||||||||||||||||||||
TSBK | TIMBERLAND BANCORP | WA | 1,563,343 | 1.73 | 13.78 | 3.87 | 2.15 | 1.10 | 0.27 | 0.07 | 0.86 | |||||||||||||||||||||||||||||
FFBW | FFBW, INC | WI | 285,634 | 0.75 | 3.15 | 3.57 | 2.47 | 0.37 | 0.48 | 0.00 | 0.91 | |||||||||||||||||||||||||||||
HWIS | HOME BANCORP WISCONSIN | WI | 177,833 | 0.51 | 5.60 | 3.05 | 2.31 | 0.25 | 0.27 | 0.00 | 0.84 | |||||||||||||||||||||||||||||
WBBW | WESTBURY BANCORP | WI | 887,607 | 0.81 | 8.50 | 3.14 | 2.42 | 0.79 | 1.33 | 0.34 | 0.89 |
114
EXHIBIT 34
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
FINAL COMPARABLE GROUP
BALANCE SHEET RATIOS
Most Recent Quarter
Total | ||||||||||||||||||||||||||||||||||||||
Cash & | 1-4 Fam. | Total Net | Net Loans | Borrowed | ||||||||||||||||||||||||||||||||||
Total | Securities/ | MBS/ | Loans/ | Loans/ | & MBS/ | Funds/ | Equity/ | |||||||||||||||||||||||||||||||
Assets | Assets | Assets | Assets | Assets | Assets | Assets | Assets | |||||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 23.91 | 0.87 | 34.68 | 69.95 | 70.82 | 16.14 | 17.16 | |||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 26.00 - | 50.00 - | 9.00 - | |||||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 45.00 | 30.00 | < 40.00 | 76.00 | 92.00 | < 46.00 | 22.00 | ||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 328,173 | 43.23 | 27.35 | 24.57 | 27.96 | 51.71 | 45.45 | 10.00 | ||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | LA | 542,184 | 7.13 | 11.51 | 24.54 | 65.51 | 75.38 | 0.18 | 9.63 | ||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 726,004 | 6.80 | 20.24 | 17.33 | 71.38 | 91.76 | 4.24 | 11.31 | ||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 897,596 | 13.16 | 5.87 | 16.75 | 74.68 | 82.64 | 0.00 | 9.85 | ||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 936,487 | 20.09 | 3.07 | 26.41 | 69.47 | 76.04 | 2.38 | 12.92 | ||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | CA | 1,184,018 | 9.93 | 10.41 | 24.58 | 74.74 | 91.44 | 11.49 | 9.63 | ||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 1,223,335 | 21.95 | 22.62 | 18.51 | 48.09 | 68.00 | 23.43 | 10.36 | ||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | 1,604,329 | 27.29 | 0.61 | 2.16 | 66.44 | 66.99 | 0.25 | 10.19 | ||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 1,760,624 | 12.86 | 1.21 | 24.22 | 61.92 | 62.99 | 27.59 | 9.59 | ||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | PA | 1,892,465 | 13.10 | 10.02 | 35.55 | 74.93 | 79.76 | 6.65 | 9.91 | ||||||||||||||||||||||||||||
AVERAGE | 1,109,522 | 17.55 | 11.29 | 21.46 | 63.51 | 74.67 | 12.17 | 10.34 | ||||||||||||||||||||||||||||||
MEDIAN | 1,060,253 | 13.13 | 10.22 | 24.38 | 67.96 | 75.71 | 5.45 | 9.96 | ||||||||||||||||||||||||||||||
HIGH | 1,892,465 | 43.23 | 27.35 | 35.55 | 74.93 | 91.76 | 45.45 | 12.92 | ||||||||||||||||||||||||||||||
LOW | 328,173 | 6.80 | 0.61 | 2.16 | 27.96 | 51.71 | 0.00 | 9.59 |
115
EXHIBIT 35
KELLER & COMPANY
Dublin, Ohio
(614) 766-1426
FINAL COMPARABLE GROUP
OPERATING PERFORMANCE AND ASSET QUALITY RATIOS
Most Recent Four Quarters
Operating Performance | Asset Quality | |||||||||||||||||||||||||||||||||||||||||
Net | Operating | Noninterest | ||||||||||||||||||||||||||||||||||||||||
Total | Core | Core | Interest | Expenses/ | Income/ | NPA/ | REO/ | Reserves/ | ||||||||||||||||||||||||||||||||||
Assets | ROAA | ROAE | Margin | Assets | Assets | Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||
($000) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | AL | 331,396 | 1.13 | 6.43 | 3.85 | 2.57 | 0.46 | 0.17 | 0.13 | 0.71 | ||||||||||||||||||||||||||||||||
DEFINED PARAMETERS FOR | 1.80- | 1.00- | ||||||||||||||||||||||||||||||||||||||||
INCLUSION IN COMPARABLE GROUP | < 1,900,000 | < 2.25 | 24.00 | 4.10 | 7.20 | < 7.50 | 1.16 | < 0.20 | > 0.15 | |||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PA | 328,173 | 0.61 | 6.92 | 1.87 | 1.09 | 0.12 | 0.00 | 0.00 | 0.19 | |||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | LA | 542,184 | 0.77 | 7.35 | 3.26 | 2.29 | 0.82 | 1.15 | 0.18 | 0.84 | |||||||||||||||||||||||||||||||
IROQ | IF BANCORP | IL | 726,004 | 0.56 | 4.89 | 2.75 | 2.36 | 0.69 | 0.09 | 0.06 | 0.90 | |||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | MN | 897,596 | 1.09 | 10.36 | 3.50 | 2.82 | 1.30 | 0.33 | 0.05 | 1.06 | |||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | MD | 936,487 | 0.70 | 5.18 | 3.26 | 3.21 | 1.26 | 0.74 | 0.11 | 0.92 | |||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | CA | 1,184,018 | 0.65 | 6.43 | 3.24 | 2.37 | 0.35 | 0.42 | 0.00 | 0.72 | |||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PA | 1,223,335 | 0.11 | 1.06 | 1.91 | 1.34 | 0.19 | 1.07 | 0.00 | 0.68 | |||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | IL | 1,604,329 | 0.72 | 6.76 | 3.22 | 2.28 | 0.31 | 0.15 | 0.01 | 0.50 | |||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | IN | 1,760,624 | 2.22 | 23.08 | 3.69 | 7.17 | 7.45 | 0.87 | 0.10 | 0.97 | |||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | PA | 1,892,465 | 0.59 | 5.99 | 2.79 | 2.13 | 0.54 | 1.09 | 0.01 | 0.81 | |||||||||||||||||||||||||||||||
AVERAGE | 1,109,522 | 0.80 | 7.80 | 2.95 | 2.71 | 1.30 | 0.59 | 0.05 | 0.76 | |||||||||||||||||||||||||||||||||
MEDIAN | 1,060,253 | 0.68 | 6.60 | 3.23 | 2.33 | 0.61 | 0.58 | 0.03 | 0.83 | |||||||||||||||||||||||||||||||||
HIGH | 1,892,465 | 2.22 | 23.08 | 3.69 | 7.17 | 7.45 | 1.15 | 0.18 | 1.06 | |||||||||||||||||||||||||||||||||
LOW | 328,173 | 0.11 | 1.06 | 1.87 | 1.09 | 0.12 | 0.00 | 0.00 | 0.19 |
116
EXHIBIT 36
KELLER & COMPANY
Dublin, Ohio
614-766-1426
COMPARABLE GROUP CHARACTERISTICS AND BALANCE SHEET TOTALS
Most Recent Quarter | ||||||||||||||||||||||||||||||||||||||
Number of Offices | Exchange | Total Assets ($000) | Int. Earning Assets ($000) | Total Net Loans ($000) | Goodwill and Intang. ($000) | Total Deposits ($000) | Total Equity ($000) | |||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | CULLMAN | AL | 4 | OTC PINK | 331,396 | 310,260 | 231,799 | 0 | 216,963 | 56,875 | ||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | OLYMPIA FIELDS | IL | 20 | NASDAQ | 1,596,342 | 1,473,293 | 1,065,892 | 293 | 1,420,227 | 163,475 | |||||||||||||||||||||||||||
ESSA | ESSA BANCORP | STROUDSBURG | PA | 23 | NASDAQ | 1,862,897 | 1,721,973 | 1,417,974 | 14,985 | 1,553,245 | 187,507 | |||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | JEFFERSONVILLE | IN | 15 | NASDAQ | 1,869,420 | 1,369,424 | 1,090,121 | 36,280 | 1,057,152 | 169,197 | |||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | ROCHESTER | MN | 14 | NASDAQ | 909,562 | 803,578 | 670,330 | 3,764 | 801,567 | 88,413 | |||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | SHREVEPORT | LA | 8 | NASDAQ | 536,009 | 472,327 | 355,209 | 0 | 485,008 | 52,203 | |||||||||||||||||||||||||||
IROQ | IF BANCORP | WATSEKA | IL | 8 | NASDAQ | 713,399 | 676,318 | 518,241 | 731 | 605,145 | 82,115 | |||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | RIVERSIDE | CA | 14 | NASDAQ | 1,170,722 | 1,110,975 | 884,953 | 295 | 920,683 | 114,048 | |||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | PHILADELPHIA | PA | 10 | NASDAQ | 1,193,261 | 1,188,073 | 588,300 | 6,442 | 774,701 | 126,684 | |||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | ANNAPOLIS | MD | 6 | NASDAQ | 949,911 | 843,130 | 650,603 | 1,314 | 788,026 | 121,025 | |||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | PITTSBURGH | PA | 6 | NASDAQ | 313,728 | 326,955 | 91,748 | 0 | 144,522 | 32,802 | |||||||||||||||||||||||||||
Average | 12 | 1,111,525 | 998,604 | 733,337 | 6,410 | 855,028 | 113,747 | |||||||||||||||||||||||||||||||
Median | 12 | 1,060,317 | 977,052 | 660,467 | 1,023 | 794,797 | 117,537 | |||||||||||||||||||||||||||||||
High | 23 | 1,869,420 | 1,721,973 | 1,417,974 | 36,280 | 1,553,245 | 187,507 | |||||||||||||||||||||||||||||||
Low | 6 | 313,728 | 326,955 | 91,748 | 0 | 144,522 | 32,802 |
117
EXHIBIT 37
KELLER & COMPANY
Dublin, Ohio
614-766-1426
BALANCE SHEET
ASSET COMPOSITION - MOST RECENT QUARTER
As a Percent of Total Assets | ||||||||||||||||||||||||||||||||||||||||||||||
Total Assets ($000) | Cash & Invest. (%) | MBS (%) | Net Loans (%) | Loan Loss Reserves (%) | Repo- sessed Assets (%) | Goodwill & Intang. (%) | Non-Perf. Assets (%) | Interest Earning Assets (%) | Interest Bearing Liabilities (%) | Capitalized Loan Servicing (%) | ||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | 331,396 | 23.91 | 0.87 | 69.95 | 0.71 | 0.13 | 0.00 | 0.17 | 93.62 | 81.61 | 0.00 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | 328,173 | 43.23 | 27.35 | 27.96 | 0.19 | 0.00 | 0.00 | 0.00 | 95.21 | 83.28 | 0.00 | ||||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | 542,184 | 7.13 | 11.51 | 65.51 | 0.84 | 0.18 | 0.00 | 1.15 | 94.31 | 69.08 | 0.00 | ||||||||||||||||||||||||||||||||||
IROQ | IF BANCORP | 726,004 | 6.80 | 20.24 | 71.38 | 0.90 | 0.06 | 0.00 | 0.09 | 96.39 | 75.45 | 0.10 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 897,596 | 13.16 | 5.87 | 74.68 | 1.06 | 0.05 | 0.11 | 0.33 | 97.28 | 63.15 | 0.31 | ||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 936,487 | 20.09 | 3.07 | 69.47 | 0.92 | 0.11 | 0.04 | 0.74 | 96.02 | 64.43 | 0.07 | ||||||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | 1,184,018 | 9.93 | 10.41 | 74.74 | 0.72 | 0.00 | 0.00 | 0.42 | 97.33 | 78.34 | 0.03 | ||||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 1,223,335 | 21.95 | 22.62 | 48.09 | 0.68 | 0.00 | 0.54 | 1.07 | 94.48 | 83.82 | 0.00 | ||||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 1,604,329 | 27.29 | 0.61 | 66.44 | 0.50 | 0.01 | 0.00 | 0.15 | 95.48 | 68.27 | 0.02 | ||||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | 1,760,624 | 12.86 | 1.21 | 61.92 | 0.97 | 0.10 | 0.72 | 0.87 | 91.77 | 74.08 | 0.75 | ||||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | 1,892,465 | 13.10 | 10.02 | 74.93 | 0.81 | 0.01 | 0.73 | 1.09 | 93.46 | 77.39 | 0.01 | ||||||||||||||||||||||||||||||||||
Average | 1,109,522 | 17.55 | 11.29 | 63.51 | 0.76 | 0.05 | 0.21 | 0.59 | 95.17 | 73.73 | 0.13 | |||||||||||||||||||||||||||||||||||
Median | 1,060,253 | 13.13 | 10.22 | 67.96 | 0.83 | 0.03 | 0.02 | 0.58 | 95.35 | 74.77 | 0.03 | |||||||||||||||||||||||||||||||||||
High | 1,892,465 | 43.23 | 27.35 | 74.93 | 1.06 | 0.18 | 0.73 | 1.15 | 97.33 | 83.82 | 0.75 | |||||||||||||||||||||||||||||||||||
Low | 328,173 | 6.80 | 0.61 | 27.96 | 0.19 | 0.00 | 0.00 | 0.00 | 91.77 | 63.15 | 0.00 | |||||||||||||||||||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 2,996,936 | 14.79 | 6.86 | 69.69 | 0.84 | 0.08 | 0.71 | 0.64 | 93.62 | 72.94 | 0.12 | |||||||||||||||||||||||||||||||||||
SOUTHEAST THRIFTS (8) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 316,221 | 21.64 | 7.62 | 63.37 | 0.87 | 0.26 | 0.17 | 0.70 | 94.57 | 70.85 | 0.11 | |||||||||||||||||||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 89,395 | 25.78 | 8.73 | 57.38 | 0.97 | 1.13 | 0.00 | 1.98 | 92.57 | 72.98 | 0.00 |
118
EXHIBIT 38
KELLER & COMPANY
Dublin, Ohio
614-766-1426
BALANCE SHEET COMPARISON
LIABILITIES AND EQUITY - MOST RECENT QUARTER
As a Percent of Total Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities ($000) | Total Equity ($000) | Total Deposits (%) | Total Borrowings (%) | Other Liabilities (%) | Preferred Equity (%) | Common Equity (%) | Acc. Other Compr. Income (%) | Retained Earnings (%) | Total Equity (%) | Tier 1 Leverage (%) | Total Risk- Based Capital (%) | |||||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | 274,521 | 56,875 | 65.47 | 16.14 | 1.22 | 0.00 | 17.16 | 0.16 | 14.73 | 17.16 | 15.49 | NR | ||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS FI NANCIAL CORP | 295,371 | 32,802 | 44.04 | 46.81 | 0.52 | 0.00 | 9.16 | 0.07 | 8.90 | 10.00 | 9.45 | 17.49 | |||||||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | 489,981 | 52,203 | 89.45 | 0.20 | 0.74 | 0.00 | 9.96 | 0.13 | 6.67 | 9.63 | 9.73 | 16.92 | |||||||||||||||||||||||||||||||||||||
IROQ | IF BANCORP | 643,889 | 82,115 | 83.35 | 5.53 | 1.09 | 0.00 | 10.68 | 0.58 | 7.59 | 11.31 | 10.63 | 0.00 | |||||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 809,183 | 88,413 | 89.30 | 0.00 | 0.85 | 0.00 | 10.30 | 0.15 | 3.50 | 9.85 | 9.73 | 14.41 | |||||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 815,462 | 121,025 | 84.15 | 4.09 | 0.55 | 0.00 | 13.13 | 0.00 | 7.61 | 12.92 | 13.59 | 0.00 | |||||||||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | 1,069,970 | 114,048 | 77.76 | 11.99 | 1.12 | 0.00 | 9.94 | 0.01 | 4.42 | 9.63 | 9.64 | 18.19 | |||||||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 1,096,651 | 126,684 | 63.33 | 24.63 | 2.88 | 0.00 | 10.94 | (0.24 | ) | 2.08 | 10.36 | 10.51 | 18.08 | ||||||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 1,440,854 | 163,475 | 88.52 | 0.25 | 1.04 | 0.00 | 10.28 | 0.01 | 0.44 | 10.19 | 10.13 | 0.00 | |||||||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | 1,591,427 | 169,197 | 60.04 | 28.55 | 2.76 | 0.00 | 8.59 | 0.64 | 5.97 | 9.61 | 9.37 | 13.13 | |||||||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | 1,704,958 | 187,507 | 82.08 | 14.43 | 1.25 | 0.00 | 9.36 | (0.21 | ) | 1.97 | 9.91 | 9.08 | 13.74 | ||||||||||||||||||||||||||||||||||||
Average | 995,775 | 113,747 | 76.20 | 13.65 | 1.28 | 0.00 | 10.23 | 0.11 | 4.92 | 10.34 | 10.19 | 11.20 | ||||||||||||||||||||||||||||||||||||||
Median | 942,716 | 117,537 | 82.72 | 8.76 | 1.07 | 0.00 | 10.12 | 0.04 | 5.20 | 9.96 | 9.73 | 14.08 | ||||||||||||||||||||||||||||||||||||||
High | 1,704,958 | 187,507 | 89.45 | 46.81 | 2.88 | 0.00 | 13.13 | 0.64 | 8.90 | 12.92 | 13.59 | 18.19 | ||||||||||||||||||||||||||||||||||||||
Low | 295,371 | 32,802 | 44.04 | 0.00 | 0.52 | 0.00 | 8.59 | (0.24 | ) | 0.44 | 9.61 | 9.08 | 0.00 | |||||||||||||||||||||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 2,652,815 | 344,121 | 77.75 | 9.70 | 1.28 | 0.07 | 11.70 | 0.12 | 5.74 | 11.66 | 11.15 | 14.33 | ||||||||||||||||||||||||||||||||||||||
SOUTHEAST THRIFTS (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 283,492 | 32,729 | 82.21 | 6.56 | 0.75 | 0.00 | 10.81 | 0.30 | 5.08 | 11.00 | 10.80 | 16.37 | ||||||||||||||||||||||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 79,620 | 9,775 | 88.15 | 0.00 | 0.91 | 0.00 | 10.85 | 0.37 | 0.68 | 10.93 | 10.76 | 22.11 |
119
EXHIBIT 39
KELLER & COMPANY
Dublin, Ohio
614-766-1426
INCOME AND EXPENSE COMPARISON
TRAILING FOUR QUARTERS
($000)
Interest Income | Interest Expense | Net Interest Income | Provision for Loss | Gain (Loss) on Sale | Total Non-Int. Income | Total Non-Int. Expense | Net Income Before Taxes | Income Taxes | Net Income | Core Income | ||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | 14,172 | 2,867 | 11,305 | 152 | 0 | 1,449 | 8,099 | 4,503 | 957 | 3,546 | 3,546 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | 9,125 | 2,999 | 6,126 | 81 | (34 | ) | 364 | 3,567 | 2,842 | 733 | 2,109 | 2,159 | |||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | 20,148 | 4,733 | 15,415 | 2,416 | 219 | 4,641 | 12,400 | 5,240 | 1,082 | 4,158 | 3,800 | ||||||||||||||||||||||||||||||||||
IROQ | IF BANCORP | 26,240 | 7,626 | 18,614 | 497 | 470 | 5,472 | 17,168 | 6,421 | 1,795 | 4,626 | 3,951 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 31,381 | 3,259 | 28,122 | 1,784 | 0 | 11,670 | 25,332 | 12,640 | 3,419 | 9,221 | 9,082 | ||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 34,347 | 6,834 | 27,513 | 850 | 0 | 11,783 | 30,090 | 8,356 | 2,194 | 6,162 | 6,195 | ||||||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | 41,961 | 5,930 | 36,031 | 1,520 | 0 | 4,140 | 28,108 | 10,543 | 3,143 | 7,400 | 7,384 | ||||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 42,177 | 19,426 | 22,751 | 3,025 | 5,993 | 8,343 | 16,453 | 11,667 | 1,708 | 9,959 | 1,389 | ||||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 56,526 | 9,146 | 47,380 | 415 | 0 | 5,032 | 36,637 | 15,360 | 4,097 | 11,263 | 11,082 | ||||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | 59,859 | 9,265 | 50,594 | 7,961 | 7 | 131,168 | 126,227 | 47,555 | 13,246 | 33,583 | 33,711 | ||||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | 64,303 | 16,334 | 47,969 | 3,275 | 2,927 | 13,087 | 40,247 | 17,534 | 3,164 | 14,370 | 11,214 | ||||||||||||||||||||||||||||||||||
Average | 38,607 | 8,555 | 30,052 | 2,182 | 958 | 19,570 | 33,623 | 13,816 | 3,458 | 10,285 | 8,997 | |||||||||||||||||||||||||||||||||||
Median | 38,154 | 7,230 | 27,818 | 1,652 | 4 | 6,908 | 26,720 | 11,105 | 2,669 | 8,311 | 6,790 | |||||||||||||||||||||||||||||||||||
High | 64,303 | 19,426 | 50,594 | 7,961 | 5,993 | 131,168 | 126,227 | 47,555 | 13,246 | 33,583 | 33,711 | |||||||||||||||||||||||||||||||||||
Low | 9,125 | 2,999 | 6,126 | 81 | (34 | ) | 364 | 3,567 | 2,842 | 733 | 2,109 | 1,389 | ||||||||||||||||||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 103,167 | 24,651 | 78,517 | 10,887 | 26,658 | 36,501 | 68,716 | 35,371 | 8,019 | 27,311 | 26,275 | |||||||||||||||||||||||||||||||||||
SOUTHEAST THRIFTS (8) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 11,287 | 2,160 | 9,127 | 901 | 121 | 2,036 | 7,759 | 2,501 | 470 | 2,031 | 1,782 | |||||||||||||||||||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3,120 | 460 | 2,660 | (143 | ) | 0 | 345 | 3,201 | (53 | ) | 0 | (53 | ) | 62 |
120
EXHIBIT 40
KELLER & COMPANY
Dublin, Ohio
614-766-1426
INCOME AND EXPENSE COMPARISON
AS A PERCENTAGE OF AVERAGE ASSETS
Interest Income | Interest Expense | Net Interest Income | Provision for Loss | Gain (Loss) on Sale | Total Non-Int. Income | Total Non-Int. Expense | Net Income Before Taxes | Income Taxes | Net Income | Core Income | ||||||||||||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | 4.50 | 0.91 | 3.59 | 0.05 | 0.00 | 0.46 | 2.57 | 1.43 | 0.30 | 1.13 | 1.13 | |||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | 2.59 | 0.85 | 1.74 | 0.02 | (0.01 | ) | 0.11 | 1.01 | 0.81 | 0.21 | 0.70 | 0.61 | |||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | 4.07 | 0.96 | 3.11 | 0.49 | 0.04 | 0.89 | 2.50 | 1.06 | 0.22 | 0.84 | 0.77 | ||||||||||||||||||||||||||||||||||
IROQ | IF BANCORP | 3.72 | 1.08 | 2.64 | 0.07 | 0.07 | 0.71 | 2.43 | 0.91 | 0.25 | 0.62 | 0.56 | ||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 3.78 | 0.39 | 3.39 | 0.21 | 0.00 | 1.41 | 3.05 | 1.52 | 0.41 | 0.99 | 1.09 | ||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 3.89 | 0.77 | 3.12 | 0.10 | 0.00 | 1.34 | 3.41 | 0.95 | 0.25 | 0.76 | 0.70 | ||||||||||||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | 3.67 | 0.52 | 3.15 | 0.13 | 0.00 | 0.36 | 2.46 | 0.92 | 0.27 | 0.74 | 0.65 | ||||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 3.39 | 1.56 | 1.83 | 0.24 | 0.48 | 0.19 | 1.32 | 0.94 | 0.14 | 0.97 | 0.11 | ||||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 3.69 | 0.60 | 3.09 | 0.03 | 0.00 | 0.33 | 2.39 | 1.00 | 0.27 | 0.86 | 0.72 | ||||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | 3.94 | 0.61 | 3.33 | 0.52 | 0.00 | 8.64 | 8.31 | 3.13 | 0.87 | 1.56 | 2.22 | ||||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | 3.36 | 0.85 | 2.51 | 0.17 | 0.15 | 0.53 | 2.10 | 0.92 | 0.17 | 0.74 | 0.59 | ||||||||||||||||||||||||||||||||||
Average | 3.61 | 0.82 | 2.79 | 0.20 | 0.07 | 1.45 | 2.90 | 1.22 | 0.31 | 0.88 | 0.80 | |||||||||||||||||||||||||||||||||||
Median | 3.70 | 0.81 | 3.10 | 0.15 | 0.00 | 0.62 | 2.44 | 0.94 | 0.25 | 0.80 | 0.67 | |||||||||||||||||||||||||||||||||||
High | 4.07 | 1.56 | 3.39 | 0.52 | 0.48 | 8.64 | 8.31 | 3.13 | 0.87 | 1.56 | 2.22 | |||||||||||||||||||||||||||||||||||
Low | 2.59 | 0.39 | 1.74 | 0.02 | (0.01 | ) | 0.11 | 1.01 | 0.81 | 0.14 | 0.62 | 0.11 | ||||||||||||||||||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3.78 | 0.81 | 2.97 | 0.27 | 0.31 | 0.88 | 2.85 | 1.09 | 0.24 | 0.76 | 0.75 | |||||||||||||||||||||||||||||||||||
SOUTHEAST THRIFTS (8) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3.82 | 0.77 | 3.05 | 0.18 | 0.04 | 0.72 | 2.91 | 0.73 | 0.14 | 0.54 | 0.50 | |||||||||||||||||||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||||||||||||||||||||||
Average | 3.72 | 0.55 | 3.17 | (0.17 | ) | 0.00 | 0.41 | 3.82 | (0.06 | ) | 0.00 | (0.06 | ) | 0.07 |
121
EXHIBIT 41
KELLER & COMPANY
Dublin, Ohio
614-766-1426
YIELDS, COSTS AND EARNINGS RATIOS
TRAILING FOUR QUARTERS
Yield on Int. Earning Assets (%) | Cost of Int. Bearing Liabilities (%) | Net Interest Spread (%) | Net Interest Margin * (%) | ROAA (%) | ROAE (%) | Core ROAA (%) | Core ROAE (%) | |||||||||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | 4.82 | 1.18 | 3.64 | 3.85 | 1.13 | 6.43 | 1.13 | 6.43 | ||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | 2.79 | 1.96 | 0.83 | 1.87 | 0.70 | 7.95 | 0.61 | 6.92 | |||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | 4.27 | 1.06 | 3.20 | 3.26 | 0.84 | 8.01 | 0.77 | 7.35 | |||||||||||||||||||||||||
IROQ | IF BANCORP | 3.88 | 1.31 | 2.57 | 2.75 | 0.62 | 5.43 | 0.56 | 4.89 | |||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 3.91 | 0.44 | 3.46 | 3.50 | 0.99 | 9.36 | 1.09 | 10.36 | |||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 4.07 | 0.94 | 3.13 | 3.26 | 0.76 | 5.63 | 0.70 | 5.18 | |||||||||||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | 3.78 | 0.67 | 3.11 | 3.24 | 0.74 | 7.40 | 0.65 | 6.43 | |||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 3.55 | 2.55 | 1.00 | 1.91 | 0.97 | 9.18 | 0.11 | 1.06 | |||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 3.84 | 0.67 | 3.17 | 3.22 | 0.86 | 8.06 | 0.72 | 6.76 | |||||||||||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | 4.37 | 0.97 | 3.40 | 3.69 | 1.56 | 16.26 | 2.22 | 23.08 | |||||||||||||||||||||||||
ESSA | ESSA BANCORP | 3.73 | 1.13 | 2.61 | 2.79 | 0.74 | 7.61 | 0.59 | 5.99 | |||||||||||||||||||||||||
Average | 3.82 | 1.17 | 2.65 | 2.95 | 0.88 | 8.49 | 0.80 | 7.80 | ||||||||||||||||||||||||||
Median | 3.86 | 1.02 | 3.12 | 3.23 | 0.80 | 7.98 | 0.68 | 6.60 | ||||||||||||||||||||||||||
High | 4.37 | 2.55 | 3.46 | 3.69 | 1.56 | 16.26 | 2.22 | 23.08 | ||||||||||||||||||||||||||
Low | 2.79 | 0.44 | 0.83 | 1.87 | 0.62 | 5.43 | 0.11 | 1.06 | ||||||||||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||||||||||
Average | 4.10 | 1.10 | 3.00 | 3.22 | 0.76 | 6.76 | 0.75 | 6.51 | ||||||||||||||||||||||||||
SOUTHEAST THRIFTS (8) | ||||||||||||||||||||||||||||||||||
Average | 4.14 | 0.97 | 3.17 | 3.30 | 0.54 | 5.20 | 0.50 | 4.94 | ||||||||||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||||||||||
Average | 4.02 | 0.63 | 3.40 | 3.43 | (0.06 | ) | (0.48 | ) | 0.07 | 0.63 |
* | Based on average interest-earning assets. |
122
EXHIBIT 42
KELLER & COMPANY
Dublin, Ohio
614-766-1426
RESERVES AND SUPPLEMENTAL DATA
Reserves and Supplemental Data | ||||||||||||||||||||||||||
Reserves/ Gross Loans (%) | Reserves/ Non-Perf. Assets (%) | Net Chargeoffs/ Average Loans (%) | Provisions/ Net Chargeoffs (%) | Non-Perf Loans/ Total Loans (%) | Effective Tax Rate (%) | |||||||||||||||||||||
SUBJECT | ||||||||||||||||||||||||||
CULLMAN BANCORP, INC. | 1.01 | 424.64 | 0.00 | 1,688.89 | 0.24 | 21.25 | ||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | 0.67 | 0.00 | 0.00 | 0.00 | 0.00 | 28.04 | |||||||||||||||||||
HFBL | HOME FED BANCORP OF LOUISIANA | 1.17 | 86.51 | 0.15 | 356.69 | 1.36 | 20.75 | |||||||||||||||||||
IROQ | IF BANCORP | 1.24 | 2,768.51 | 0.06 | 217.36 | 0.04 | 27.99 | |||||||||||||||||||
HMNF | HMN FINANCIAL | 1.39 | 375.28 | 0.12 | 266.90 | 0.37 | 28.05 | |||||||||||||||||||
SVBI | SEVERN BANCORP | 1.27 | 145.20 | (0.14 | ) | (123.73 | ) | 0.87 | 25.62 | |||||||||||||||||
PROV | PROVIDENT FINANCIAL HOLDINGS | 0.95 | 170.76 | 0.00 | (5,711.11 | ) | 0.56 | 29.46 | ||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 1.39 | 63.69 | 0.03 | 2,320.00 | 2.19 | 13.11 | |||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 0.75 | 343.23 | (0.01 | ) | (615.09 | ) | 0.22 | 26.42 | |||||||||||||||||
FSFG | FIRST SAVINGS FINANCIAL GROUP | 1.22 | 125.71 | 0.11 | 775.86 | 0.97 | 28.82 | |||||||||||||||||||
ESSA | ESSA BANCORP | 1.07 | 75.75 | 0.02 | 1,169.35 | 1.42 | 18.33 | |||||||||||||||||||
Average | 1.11 | 415.46 | 0.03 | (134.38 | ) | 0.80 | 24.66 | |||||||||||||||||||
Median | 1.20 | 135.46 | 0.03 | 242.13 | 0.72 | 27.21 | ||||||||||||||||||||
High | 1.39 | 2,768.51 | 0.15 | 2,320.00 | 2.19 | 29.46 | ||||||||||||||||||||
Low | 0.67 | 0.00 | (0.14 | ) | (5,711.11 | ) | 0.00 | 13.11 | ||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||
Average | 1.13 | 373.62 | 0.05 | 672.56 | 0.80 | 7.12 | ||||||||||||||||||||
SOUTHEAST THRIFTS (8) | ||||||||||||||||||||||||||
Average | 1.37 | 629.15 | (0.00 | ) | (323.31 | ) | 0.70 | 18.39 | ||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||
Average | 1.66 | 114.25 | (0.08 | ) | 0.00 | 1.45 | 0.00 |
123
EXHIBIT 43
KELLER & COMPANY
Dublin, Ohio
614-766-1426
COMPARABLE GROUP MARKET, PRICING AND FINANCIAL RATIOS
STOCK PRICES AS OF FEBRUARY 12, 2021
FINANCIAL DATA/ALL RATIOS MOST RECENT FOUR QUARTERS
Market Data | Pricing Ratios | Dividends | Financial Ratios | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market Value ($M) | Price/ Share ($) | 12 Mo. EPS ($) | Bk. Value /Share ($) | Price/ Earnings (X) | Price/ Book Value (%) | Price/ Assets (%) | Price/ Tang. Bk. Val. (%) | Price/ Core Earnings (X) | 12 Mo. Div./ Share ($) | Dividend Yield (%) | Payout Ratio (%) | Equity/ Assets (%) | Core ROAA (%) | Core ROAE (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
CULLMAN BANCORP INC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Midpoint | 56,000 | 10.00 | 0.63 | 15.51 | 16.13 | 64.56 | 15.54 | 64.56 | 16.13 | 0.34 | 1.48 | 23.41 | 24.03 | 0.93 | 3.87 | |||||||||||||||||||||||||||||||||||||||||||||||
Minimum | 47,600 | 10.00 | 0.74 | 17.34 | 13.70 | 57.74 | 13.37 | 57.74 | 13.70 | 0.34 | 3.40 | 45.66 | 23.11 | 0.95 | 4.10 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum | 64,400 | 10.00 | 0.54 | 14.15 | 18.81 | 77.07 | 17.69 | 77.07 | 18.81 | 0.34 | 3.40 | 62.74 | 24.93 | 0.91 | 3.66 | |||||||||||||||||||||||||||||||||||||||||||||||
Maximum, as adjusted | 74,060 | 10.00 | 0.47 | 12.97 | 22.02 | 77.16 | 20.08 | 77.16 | 22.02 | 0.34 | 3.40 | 72.80 | 25.93 | 0.89 | 3.44 | |||||||||||||||||||||||||||||||||||||||||||||||
ALL THRIFTS (92) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 345,104 | 23.65 | 1.90 | 24.40 | 11.62 | 94.29 | 11.05 | 104.22 | 14.37 | 0.57 | 2.52 | 27.81 | 11.66 | 0.93 | 7.95 | |||||||||||||||||||||||||||||||||||||||||||||||
Median | 76,972 | 15.34 | 1.14 | 18.28 | 11.77 | 88.50 | 9.68 | 98.63 | 12.95 | 0.30 | 2.06 | 23.66 | 11.06 | 0.72 | 6.21 | |||||||||||||||||||||||||||||||||||||||||||||||
ALABAMA THRIFTS (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 2,168 | 3.09 | (0.07 | ) | 13.93 | (44.14 | ) | 22.18 | 2.42 | 22.18 | 34.33 | 0.18 | 5.83 | NM | 10.93 | 0.07 | 0.63 | |||||||||||||||||||||||||||||||||||||||||||||
Median | 17,882 | 15.00 | 1.31 | 16.62 | 11.45 | 90.25 | 8.82 | 92.42 | 10.00 | 0.31 | 2.07 | NM | 9.78 | 0.93 | 9.68 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average | 100,460 | 21.00 | 2.21 | 23.07 | 11.53 | 89.47 | 9.24 | 93.79 | 19.55 | 0.27 | 1.64 | 19.03 | 10.34 | 0.80 | 7.80 | |||||||||||||||||||||||||||||||||||||||||||||||
Median | 99,995 | 15.46 | 1.33 | 17.16 | 11.55 | 87.53 | 9.17 | 93.31 | 14.38 | 0.25 | 1.21 | 17.69 | 9.96 | 0.67 | 6.59 | |||||||||||||||||||||||||||||||||||||||||||||||
COMPARABLE GROUP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BFIN | BANKFINANCIAL CORP | 131,931 | 8.86 | 0.89 | 10.98 | 9.96 | 80.69 | 8.26 | 80.84 | 11.97 | 0.40 | 4.51 | 44.94 | 10.19 | 0.72 | 6.76 | ||||||||||||||||||||||||||||||||||||||||||||||
ESSA | ESSA BANCORP | 164,625 | 15.02 | 1.30 | 17.11 | 11.55 | 87.78 | 8.84 | 95.43 | 14.73 | 0.44 | 2.93 | 33.85 | 9.91 | 0.59 | 5.99 | ||||||||||||||||||||||||||||||||||||||||||||||
FSFG | FIRST SAVINGS FIN GROUP | 152,971 | 64.40 | 10.00 | 71.23 | 6.44 | 90.41 | 8.18 | 115.08 | 4.54 | 0.68 | 1.06 | 6.80 | 9.61 | 2.22 | 23.08 | ||||||||||||||||||||||||||||||||||||||||||||||
HMNF | HMN FINANCIAL | 83,282 | 17.22 | 1.70 | 18.28 | 10.13 | 94.20 | 9.16 | 98.40 | 9.16 | 0.00 | 0.00 | 0.00 | 9.85 | 1.09 | 10.36 | ||||||||||||||||||||||||||||||||||||||||||||||
HFBL | HOME FED BANCORP OF LA | 53,460 | 31.00 | 2.40 | 30.27 | 12.92 | 102.41 | 9.97 | 102.41 | 14.07 | 0.20 | 0.65 | 8.33 | 9.63 | 0.77 | 7.35 | ||||||||||||||||||||||||||||||||||||||||||||||
IROQ | IF BANCORP | 71,483 | 22.06 | 1.35 | 25.34 | 16.34 | 87.06 | 10.02 | 87.82 | 18.08 | 0.30 | 1.36 | 22.22 | 11.31 | 0.56 | 4.89 | ||||||||||||||||||||||||||||||||||||||||||||||
PROV | PROVIDENT FIN HOLDINGS | 118,237 | 15.90 | 1.14 | 15.34 | 13.95 | 103.67 | 10.10 | 103.94 | 16.01 | 0.15 | 0.94 | 13.16 | 9.63 | 0.65 | 6.43 | ||||||||||||||||||||||||||||||||||||||||||||||
PBIP | PRUDENTIAL BANCORP | 109,659 | 13.46 | 1.47 | 15.55 | 9.16 | 86.56 | 9.19 | 91.20 | 78.95 | 0.00 | 0.00 | 0.00 | 10.36 | 0.11 | 1.06 | ||||||||||||||||||||||||||||||||||||||||||||||
SVBI | SEVERN BANCORP | 90,331 | 7.05 | 0.53 | 9.45 | 13.30 | 74.60 | 9.51 | 75.48 | 14.69 | 0.16 | 2.27 | 30.19 | 12.92 | 0.70 | 5.18 | ||||||||||||||||||||||||||||||||||||||||||||||
WVFC | WVS FINANCIAL CORP | 28,620 | 15.01 | 1.30 | 17.20 | 11.55 | 87.27 | 9.12 | 87.27 | 13.28 | 0.40 | 2.66 | 30.77 | 10.00 | 0.61 | 6.92 |
124
EXHIBIT 44
Valuation Summary
Total Shares | Offering Shares | Foundation Shares | Exchange Shares Issued to the Public Shareholders | Exchange Ratio | ||||||||||||||||
(x) | ||||||||||||||||||||
Shares | ||||||||||||||||||||
Midpoint | 5,600,000 | 3,259,872 | 112,000 | 2,228,128 | 2.1288 | |||||||||||||||
Minimum | 4,760,000 | 2,770,891 | 95,200 | 1,893,909 | 1.8094 | |||||||||||||||
Maximum | 6,440,000 | 3,748,853 | 128,800 | 2,562,347 | 2.4481 | |||||||||||||||
Supermaximum | 7,406,000 | 4,311,181 | 148,120 | 2,946,699 | 2.8153 | |||||||||||||||
Distribution of Shares | ||||||||||||||||||||
Midpoint | 100.00 | % | 58.21 | % | 2.00 | % | 39.79 | % | ||||||||||||
Minimum | 100.00 | % | 58.21 | % | 2.00 | % | 39.79 | % | ||||||||||||
Maximum | 100.00 | % | 58.21 | % | 2.00 | % | 39.79 | % | ||||||||||||
Supermaximum | 100.00 | % | 58.21 | % | 2.00 | % | 39.79 | % | ||||||||||||
Aggregate Market Value | ||||||||||||||||||||
Midpoint | $ | 56,000,000 | $ | 32,598,720 | $ | 1,120,000 | $ | 22,281,280 | ||||||||||||
Minimum | 47,600,000 | 27,708,910 | 952,000 | 18,939,090 | ||||||||||||||||
Maximum | 64,400,000 | 37,488,530 | 1,288,000 | 25,623,470 | ||||||||||||||||
Supermaximum | 74,060,000 | 43,111,810 | 1,481,200 | 29,466,990 |
125
EXHIBIT 45
KELLER & COMPANY
Columbus, Ohio
614-766-1426
VALUATION ANALYSIS AND CALCULATION—SECOND STAGE OFFERING
Cullman Bancorp, Inc.
Pricing ratios and parameters:
Pro Forma | Symbol | Midpoint Ratios | Comparable Group | All Thrifts | ||||||||||||||||||
Average | Median | Average | Median | |||||||||||||||||||
Price to earnings (X) | P/E | 16.13 | 11.53 | 11.55 | 11.62 | 11.77 | ||||||||||||||||
Price to core earnings (X) | P/CE | 16.13 | 19.55 | 14.38 | 14.37 | 12.95 | ||||||||||||||||
Price to book value | P/B | 64.56 | % | 89.47 | 87.53 | 94.29 | 88.50 | |||||||||||||||
Price to tangible book value | P/TB | 64.56 | % | 93.79 | 93.31 | 104.22 | 98.63 | |||||||||||||||
Price to assets | P/A | 15.54 | % | 9.24 | 9.17 | 11.05 | 9.68 | |||||||||||||||
Pre conversion earnings | (Y) | $ 3,546,000 For the twelve months ended December 31, 2020 | ||||||||||||||||||||
Pre conversion core earnings | (CY) | $ 3,546,000 For the twelve months ended December 31, 2020 | ||||||||||||||||||||
Pre conversion book value | (B) | $ 59,509,151 At December 31, 2020 | ||||||||||||||||||||
Pre conversion tang. book value | (TB) | $ 59,509,151 At December 31, 2020 | ||||||||||||||||||||
Pre conversion assets | (A) | $334,030,151 At December 31, 2020 | ||||||||||||||||||||
Conversion expense | (X) | 4.61% | Percent sold | (PCT) | 59.40% | |||||||||||||||||
ESOP stock purchase | (E) | 8.00% | Option % granted | (OP) | 10.00% | |||||||||||||||||
ESOP cost of borrowings, net | (S) | 0.00% | Est. option value | (OV) | 25.90% | |||||||||||||||||
ESOP term (yrs.) | (T) | 25 | Option maturity | (OM) | 5 | |||||||||||||||||
RRP amount | (M) | 4.00% | Option % taxable | (OT) | 25.00% | |||||||||||||||||
RRP term (yrs.) | (N) | 5 | Price per share | (P) | $ 10.00 | |||||||||||||||||
Tax rate | (TAX) | 21.00% | ||||||||||||||||||||
Investment rate of return, pretax | 1.21% | |||||||||||||||||||||
Investment rate of return, net | (RR) | 0.96% |
Formulae to indicate value after conversion:
1. P/CE method: Value = P/CE*CY | = $ | 56,000,000 | ||||||||
((1-P/CE*(PCT)*((1-X-E-M)*(RR*(1-TAX))-((1-TAX)*E/T)-((1-TAX)*M/N)-((1-TAX)*OT)*(OP*OV)/OM))) | ||||||||||
2. P/B method: Value = | P/B*(B) | = $ | 56,000,000 | |||||||
(1-PB*(PCT)*(1-X-E-M)) | ||||||||||
3. P/A method: Value = | P/A*(A) | = $ | 56,000,000 | |||||||
(1-PA*(PCT)*(1-X-E-M)) |
VALUATION CORRELATION AND CONCLUSIONS:
Exchange Shares Issued | Public Shares Issued | Gross Proceeds of Public Offering | Exchange Ratio | Total Shares Issued | TOTAL VALUE | |||||||||||||||||||
Midpoint | 2,228,128 | 3,259,872 | $ | 32,598,720 | 2.1288 | 5,600,000 | $ | 56,000,000 | ||||||||||||||||
Minimum | 1,893,909 | 2,770,891 | $ | 27,708,910 | 1.8094 | 4,760,000 | $ | 47,600,000 | ||||||||||||||||
Maximum | 2,562,347 | 3,748,853 | $ | 37,488,530 | 2.4481 | 6,440,000 | $ | 64,400,000 | ||||||||||||||||
Maximum, as adjusted | 2,946,699 | 4,311,181 | $ | 43,111,810 | 2.8153 | 7,406,000 | $ | 74,060,000 |
(1) | Proceeds reduced to reflect 2.0 percent of total shares issued to the foundation: 95,200, 112,000, 128,800 and 148,120 shares at the minimum, midpoint, maximum and adjusted maximum of the range, respectively. |
126
EXHIBIT 46
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
Cullman Savings Bank
At the MINIMUM
1. Gross Offering Proceeds |
| |||||||
Offering proceeds (1) | $ | 27,708,910 | ||||||
Less: Estimated offering expenses | 1,488,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 26,220,910 | ||||||
2. Generation of Additional Income |
| |||||||
Net offering proceeds | $ | 26,220,910 | ||||||
Less: Stock-based benefit plans (2) | 3,325,069 | |||||||
Cash to Foundation | 100,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 22,795,841 | ||||||
Investment rate, after taxes | 0.96 | % | ||||||
Earnings increase - return on proceeds invested | $ | 217,905 | ||||||
Less: Estimated cost of ESOP borrowings | 0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 70,048 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 175,120 | |||||||
Less: Option expense, net of applicable taxes | 132,846 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (160,109 | ) | |||||
3. Comparative Pro Forma Earnings |
| |||||||
Net | Core | |||||||
Before conversion - 12 months ended 12/31/20 | $ | 3,546,000 | $ | 3,546,000 | ||||
Net earnings increase (decrease) | (160,109 | ) | (160,109 | ) | ||||
|
|
|
| |||||
After conversion | $ | 3,385,891 | $ | 3,385,891 | ||||
4. Comparative Pro Forma Net Worth (3) |
| |||||||
Total | Tangible | |||||||
Before conversion - 12/31/20 | $ | 59,509,151 | $ | 59,509,151 | ||||
Net cash conversion proceeds | 22,795,841 | 22,795,841 | ||||||
Tax benefit of foundation contribution | 220,920 | 220,920 | ||||||
|
|
|
| |||||
After conversion | $ | 82,525,912 | $ | 82,525,912 | ||||
5. Comparative Pro Forma Assets |
| |||||||
Before conversion - 12/31/20 | $ | 334,030,151 | ||||||
Net cash conversion proceeds | 22,795,841 | |||||||
Tax benefit of foundation contribution | 220,920 | |||||||
|
| |||||||
After conversion | $ | 357,046,912 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
127
EXHIBIT 47
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
Cullman Savings Bank
At the MIDPOINT
1. Gross Offering Proceeds |
| |||||||
Offering proceeds (1) | $ | 32,598,720 | ||||||
Less: Estimated offering expenses | 1,502,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 31,096,720 | ||||||
2. Generation of Additional Income |
| |||||||
Net offering proceeds | $ | 31,096,720 | ||||||
Less: Stock-based benefit plans (2) | 3,911,846 | |||||||
Cash to Foundation | 100,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 27,084,874 | ||||||
Investment rate, after taxes | 0.96 | % | ||||||
Earnings increase - return on proceeds invested | $ | 258,904 | ||||||
Less: Estimated cost of ESOP borrowings | 0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 82,410 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 206,024 | |||||||
Less: Option expense, net of applicable taxes | 156,290 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (185,819 | ) | |||||
3. Comparative Pro Forma Earnings |
| |||||||
Regular | Core | |||||||
Before conversion - 12 months ended 12/31/20 | $ | 3,546,000 | $ | 3,546,000 | ||||
Net earnings increase | (185,819 | ) | (185,819 | ) | ||||
After conversion | $ | 3,360,181 | $ | 3,360,181 | ||||
4. Comparative Pro Forma Net Worth (3) |
| |||||||
Total | Tangible | |||||||
Before conversion - 12/31/20 | $ | 59,509,151 | $ | 59,509,151 | ||||
Net cash conversion proceeds | 27,084,874 | 27,084,874 | ||||||
Tax benefit of foundation contribution | 256,200 | 256,200 | ||||||
After conversion | $ | 86,850,225 | $ | 86,850,225 | ||||
5. Comparative Pro Forma Assets |
| |||||||
Before conversion - 12/31/20 | $ | 334,030,151 | ||||||
Net cash conversion proceeds | 27,084,874 | |||||||
Tax benefit of foundation contribution | 256,200 | |||||||
|
| |||||||
After conversion | $ | 361,371,225 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
128
EXHIBIT 48
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
Cullman Savings Bank
At the MAXIMUM
1. Gross Offering Proceeds |
| |||||||
Offering proceeds (1) | $ | 37,488,530 | ||||||
Less: Estimated offering expenses | 1,547,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 35,941,530 | ||||||
2. Generation of Additional Income |
| |||||||
Net offering proceeds | $ | 35,941,530 | ||||||
Less: Stock-based benefit plans (2) | 4,498,624 | |||||||
Cash to Foundation | 100,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 31,342,906 | ||||||
Investment rate, after taxes | 0.96 | % | ||||||
Earnings increase - return on proceeds invested | $ | 299,607 | ||||||
Less: Estimated cost of ESOP borrowings | 0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 94,771 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 236,928 | |||||||
Less: Option expense, net of applicable taxes | 179,733 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (211,825 | ) | |||||
3. Comparative Pro Forma Earnings |
| |||||||
Regular | Core | |||||||
Before conversion - 12 months ended 12/31/20 | $ | 3,546,000 | $ | 3,546,000 | ||||
Net earnings increase | (211,825 | ) | (211,825 | ) | ||||
After conversion | $ | 3,334,175 | $ | 3,334,175 | ||||
4. Comparative Pro Forma Net Worth (3) |
| |||||||
Total | Tangible | |||||||
Before conversion - 12/31/20 | $ | 59,509,151 | $ | 59,509,151 | ||||
Net cash conversion proceeds | 31,342,906 | 31,342,906 | ||||||
Tax benefit of foundation contribution | 291,480 | 291,480 | ||||||
After conversion | $ | 91,143,537 | $ | 91,143,537 | ||||
5. Comparative Pro Forma Assets |
| |||||||
Before conversion - 12/31/20 | $ | 334,030,151 | ||||||
Net cash conversion proceeds | 31,342,906 | |||||||
Tax benefit of foundation contribution | 291,480 | |||||||
|
| |||||||
After conversion | $ | 365,664,537 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
129
EXHIBIT 49
KELLER & COMPANY
Columbus, Ohio
614-766-1426
PROJECTED EFFECT OF CONVERSION PROCEEDS
Cullman Savings Bank
At the Maximum, as adjusted
1. Gross Offering Proceeds |
| |||||||
Offering proceeds (1) | $ | 43,111,810 | ||||||
Less: Estimated offering expenses | 1,599,000 | |||||||
|
| |||||||
Net offering proceeds | $ | 41,512,810 | ||||||
2. Generation of Additional Income |
| |||||||
Net offering proceeds | $ | 41,512,810 | ||||||
Less: Stock-based benefit plans (2) | 5,173,417 | |||||||
Cash to Foundation | 100,000 | |||||||
|
| |||||||
Net offering proceeds invested | $ | 36,239,393 | ||||||
Investment rate, after taxes | 0.96 | % | ||||||
Earnings increase - return on proceeds invested | $ | 346,412 | ||||||
Less: Estimated cost of ESOP borrowings | 0 | |||||||
Less: Amortization of ESOP borrowings, net of taxes | 108,987 | |||||||
Less: Stock-based incentive plan expense, net of taxes | 272,467 | |||||||
Less: Option expense, net of applicable taxes | 206,693 | |||||||
|
| |||||||
Net earnings increase (decrease) | $ | (241,734 | ) | |||||
3. Comparative Pro Forma Earnings |
| |||||||
Regular | Core | |||||||
Before conversion - 12 months ended 12/31/20 | $ | 3,546,000 | $ | 3,546,000 | ||||
Net earnings increase | (241,734 | ) | (241,734 | ) | ||||
|
|
|
| |||||
After conversion | $ | 3,304,266 | $ | 3,304,266 | ||||
4. Comparative Pro Forma Net Worth (3) |
| |||||||
Total | Tangible | |||||||
Before conversion - 12/31/20 | $ | 59,509,151 | $ | 59,509,151 | ||||
Net cash conversion proceeds | 36,239,393 | 36,239,393 | ||||||
Tax benefit of foundation contribution | 332,052 | 332,052 | ||||||
|
|
|
| |||||
After conversion | $ | 96,080,596 | $ | 96,080,596 | ||||
5. Comparative Pro Forma Assets |
| |||||||
Before conversion - 12/31/20 | $ | 334,030,151 | ||||||
Net cash conversion proceeds | 36,239,393 | |||||||
Tax benefit of foundation contribution | 332,052 | |||||||
|
| |||||||
After conversion | $ | 370,601,596 |
(1) | Represents gross proceeds of public offering. |
(2) | Represents ESOP and stock-based incentive plans. |
(3) | ESOP and RRP are omitted from net worth. |
130
EXHIBIT 50
KELLER & COMPANY
Columbus, Ohio
614-766-1426
SUMMARY OF VALUATION PREMIUM OR DISCOUNT
Premium or (discount) from comparable group. | ||||||||||||
Cullman Savings Bank | Average | Median | ||||||||||
Midpoint: | ||||||||||||
Price/earnings | 16.13 | x | 39.90 | % | 39.65 | % | ||||||
Price/book value | 64.56 | % * | (27.84 | )% | (26.24 | )% | ||||||
Price/assets | 15.54 | % | 68.18 | % | 69.47 | % | ||||||
Price/tangible book value | 64.56 | % | (31.17 | )% | (30.81 | )% | ||||||
Price/core earnings | 16.13 | x | (17.49 | )% | 12.17 | % | ||||||
Minimum of range: | ||||||||||||
Price/earnings | 13.70 | x | 18.82 | % | 18.61 | % | ||||||
Price/book value | 57.74 | % * | (35.46 | )% | (34.03 | )% | ||||||
Price/assets | 13.37 | % | 44.70 | % | 45.80 | % | ||||||
Price/tangible book value | 57.74 | % | (38.44 | )% | (38.12 | )% | ||||||
Price/core earnings | 13.70 | x | (29.92 | )% | (4.73 | )% | ||||||
Maximum of range: | ||||||||||||
Price/earnings | 18.81 | x | 63.14 | % | 62.86 | % | ||||||
Price/book value | 77.07 | % * | (13.86 | )% | (11.95 | )% | ||||||
Price/assets | 17.69 | % | 91.45 | % | 92.91 | % | ||||||
Price/tangible book value | 77.07 | % | (17.83 | )% | (17.40 | )% | ||||||
Price/core earnings | 18.81 | x | (3.79 | )% | 30.81 | % | ||||||
Super maximum of range: | ||||||||||||
Price/earnings | 22.02 | x | 90.98 | % | 90.65 | % | ||||||
Price/book value | 77.16 | % * | (13.76 | )% | (11.85 | )% | ||||||
Price/assets | 20.08 | % | 117.32 | % | 118.97 | % | ||||||
Price/tangible book value | 77.16 | % | (17.73 | )% | (17.31 | )% | ||||||
Price/core earnings | 22.02 | x | 12.63 | % | 53.13 | % |
* | Represents pricing ratio associated with primary valuation method. |
131
ALPHABETICAL
EXHIBITS
EXHIBIT A
KELLER & COMPANY, INC.
Financial Institution Consultants
555 Metro Place North, Suite 524 | 614-766-1426 | |
Dublin, Ohio 43017 | (fax) 614-766-1459 |
PROFILE OF THE FIRM
KELLER & COMPANY, INC. is a national consulting firm to financial institutions, serving clients throughout the United States from its office in Dublin, Ohio. Since our inception in 1985, we have provided a wide range of consulting services to over 250 financial institutions including banks, thrifts, mortgage companies, insurance companies and holding companies from Oregon to Maine.
Services offered by Keller & Company include the preparation of stock and ESOP valuations, fairness opinions, business and strategic plans, capital plans, financial models and projections, market studies, de novo charter and deposit insurance applications, incentive compensation plans, compliance policies, lending, underwriting and investment criteria, and responses to regulatory comments. Keller & Company also serves as advisor in merger/acquisition, deregistration, going private, secondary offering and branch purchase/sale transactions. Keller & Company is additionally active in director and management review, product analysis and development, performance analysis, compensation review, policy development, charter conversion, data processing, information technology systems, and conference planning and facilitation.
Keller & Company is one of the leading firms in the U.S. with regard to the completion of ESOP valuations for financial institutions and prepares over 30 ESOP valuations a year. Keller is also one of the leading conversion appraisal firms in the United States.
Keller has on-line access to current and historical financial, organizational and demographic data for every financial institution and financial institution holding company in the United States as well as daily pricing data and ratios for all publicly traded financial institutions.
Keller & Company is an experienced appraiser of financial institutions for filing conversion appraisals with the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Federal Reserve Board and numerous state government agencies, and is also experienced in completing valuations for the Internal Revenue Service as an expert in financial institution stock valuations.
Each of the firm’s senior consultants has over twenty-five years of front line experience and accomplishment in various areas of the financial institution, regulatory and real estate sectors, offering clients distinct and diverse areas of expertise. It is the goal of Keller & Company to provide specific and ongoing relationship-based services that are pertinent, focused and responsive to the needs of the individual client institution within the changing industry environment, and to offer those services at reasonable fees on a timely basis. In recent years, Keller & Company has become one of the leading and most recognized financial institution consulting firms in the nation.
132
CONSULTANTS IN THE FIRM
MICHAEL R. KELLER has over thirty-five years experience as a consultant to the financial institution industry. Immediately following his graduation from college, Mr. Keller took a position as an examiner of financial institutions in northeastern Ohio with a focus on Cleveland area institutions. After working two years as an examiner, Mr. Keller entered Ohio State University full time to obtain his M.B.A. in Finance.
Mr. Keller then worked as an associate for a management consulting firm specializing in services to financial institutions immediately after receiving his M.B.A. During his eight years with the firm, he specialized in mergers and acquisitions, branch acquisitions and sales, branch feasibility studies, stock valuations, charter applications, and site selection analyses. By the time of his departure, he had attained the position of vice president, with experience in almost all facets of banking operations.
Prior to forming Keller & Company, Mr. Keller also worked as a senior consultant in a larger consulting firm. In that position, he broadened his activities and experience, becoming more involved with institutional operations, business and strategic planning, regulatory policies and procedures, performance analysis, conversion appraisals, and fairness opinions. Mr. Keller established Keller & Company in November 1985 to better serve the needs of the financial institution industry.
Mr. Keller graduated from the College of Wooster with a B.A. in Economics in 1972, and later received an M.B.A. in Finance in 1976 from the Ohio State University where he took numerous courses in corporate stock valuations.
133
Consultants in the Firm (cont.)
SUSAN H. O’DONNELL has twenty-five years of experience in the finance and accounting areas of the banking industry.
At the start of her career, Ms. O’Donnell worked in public accounting for Coopers & Lybrand in Cincinnati and earned her CPA. Her clients consisted primarily of financial institutions and health care companies.
Ms. O’Donnell then joined Empire Bank of America in Buffalo, New York. During her five years with Empire, Ms. ODonnell progressed to the level of Vice President and was responsible for SEC, FHLB and internal financial reporting. She also coordinated the offering circular for its initial offering of common stock.
Ms. O’Donnell later joined Banc One Corporation where she worked for eleven years. She began her career at Banc One in the Corporate Accounting Department where she was responsible for SEC, Federal Reserve and investor relations reporting and coordinated the offering documents for stock and debt offerings. She also performed acquisition work including regulatory applications and due diligence and established accounting policies and procedures for all affiliates. Ms. O’Donnell later moved within Banc One to the position of chief financial officer of the Personal Trust business responsible for $225 million in revenue. She then provided leadership as the Director of Personal Trust Integration responsible for various savings and revenue enhancements related to the Bank One/First Chicago merger.
Ms. O’Donnell graduated from Miami University with a B.S. in Business. She also completed the Leading Strategic Change Program at The Darden School of Business and the Banc One Leadership Development Program.
134
Consultants in the Firm (cont.)
JOHN A. SHAFFER has over thirty years experience in banking, finance, real estate lending, and development.
Following his university studies, Mr. Shaffer served as a lending officer for a large real estate investment trust, specializing in construction and development loans. Having gained experience in loan underwriting, management and workout, he later joined Chemical Bank of New York and was appointed Vice President for Loan Administration of Chemical Mortgage Company in Columbus, Ohio. At Chemical, he managed all commercial and residential loan servicing, administering a portfolio in excess of $2 billion. His responsibilities also included the analysis, management and workout of problem commercial real estate loans and equity holdings, and the structuring, negotiation, acquisition and sale of loan servicing, mortgage and equity securities and real estate projects. Mr. Shaffer later formed and managed an independent real estate and financial consulting firm, serving corporate and institutional clients, and also investing in and developing real estate.
Mr. Shaffer’s primary activities and responsibilities have included financial analysis, projection and modeling, asset and liability management, real estate finance and development, loan management and workout, organizational and financial administration, budgeting, cash flow management and project design.
Mr. Shaffer graduated from Syracuse University with a B.S. in Business Administration, later receiving an M.B.A. in Finance and a Ph.D. in Economics from New York University.
135
EXHIBIT B
RB 20
CERTIFICATION
I hereby certify that I have not been the subject of any criminal, civil or administrative judgments, consents, undertakings or orders, or any past administrative proceedings (excluding routine or customary audits, inspections and investigation) issued by any federal or state court, any department, agency, or commission of the U.S. Government, any state or municipality, any self-regulatory trade or professional organization, or any foreign government or governmental entity, which involve:
(i) | commission of a felony, fraud, moral turpitude, dishonesty or breach of trust; |
(ii) | violation of securities or commodities laws or regulations; |
(iii) | violation of depository institution laws or regulations; |
(iv) | violation of housing authority laws or regulations; |
(v) | violation of the rules, regulations, codes or conduct or ethics of a self-regulatory trade or professional organization; |
(vi) | adjudication of bankruptcy or insolvency or appointment of a receiver, conservator, trustee, referee, or guardian. |
I hereby certify that the statements I have made herein are true, complete and correct to the best of my knowledge and belief.
Conversion Appraiser | ||||||
March 4, 2021 | /s/ Michael R. Keller | |||||
Date | Michael R. Keller |
136
EXHIBIT C
AFFIDAVIT OF INDEPENDENCE
STATE OF OHIO,
COUNTY OF FRANKLIN, ss:
I, Michael R. Keller, being first duly sworn hereby depose and say that:
The fee which I received directly from the applicant, Cullman Bancorp, Inc., in the amount of $40,000 for the performance of my appraisal was not related to the value determined in the appraisal and that the undersigned appraiser is independent and has fully disclosed any relationships which may have a material bearing upon the question of my independence; and that any indemnity agreement with the applicant has been fully disclosed.
Further, affiant sayeth naught.
/s/ Michael R. Miller |
MICHAEL R. KELLER |
Sworn to before me and subscribed in my presence this 4th day of March 2021.
/s/ Janet M. Mohr |
NOTARY PUBLIC |
137